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PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1107 Public Law 100-418 100th Congress An Act Aug. 23, 1988 [H.R. 4848] To enhance the competitiveness of American industry, and for other purposes. Be it enacted by the Senate and House of Representatives of the Omnibus Trade United States of America in Congress assembled, SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. (a) SHORT TITLE.—^This Act may be cited as the "Omnibus Trade and Competitiveness Act of 1988". (b) TABLE OF CONTENTS.— Sec. 1. Short title and table of contents. Sec. 2. Legislative history of H.R. 3 applicable. TITLE I—TRADE, CUSTOMS, AND TARIFF LAWS Sec. 1001. Findings and purposes. Subtitle A—United States Trade Agreements PABT 1—NEGOTIATION AND IMPLEMENTATION OF TRADE AGREEMENTS Sec. Sec. Sec. Sec. Sec. 1101. 1102. 1103. 1104. 1105. OveraU and principal trade n^otiating objectives of the United States. Trade agreement n^otiating authority. Implementation of trade agreements. Compensation authority. Termination and reservation authority; reciprocal nondiscriminatory treatment. Sec. 1106. Accession of state trading r^imes to the General Agreement on TarifSs and Trade. Sec. 1107. Definitions and conforming amendments. PART 2—HEARINGS AND ADVICE CONCERNING NEGOTIATIONS Sec. 1111. Hearings and advice. PART 3—OTHER TRADE AGREEBIENT AND NEGOTIATION PROVISIONS Sec. Sec. Sec. Sec. Sec. 1121. 1122. 1123. 1124. 1125. Sec. Sec. Sec. Sec. Sec. 1201. 1202. 1203. 1204. 1205. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Implementation of Nairobi Protocol. Implementation of United States-EC Agreement on citrus and pasta. Extension of International Coffee Agreement Act of 1980. N^iotiations on currency exchange rates. Reports on n^otiations to eliminate wine trade barriers. ;' Subtitle B—Implementation of the Harmonized Tariff Schedule Purposes. Definitions. Congressional approval of United States accession to tiie Convention. Enactment of the Harmonized Tariff Schedide. Commission review of, and recommendations regarding, the Harmonized Tariff Schedule. 1206. Presidential action on Commission recommendatioiis. 1207. Publication of the Harmonized Tariff Schedule. 1208. Import and export statistics. 1209. Coordination of trade policy and the Convention. 1210. United States participation on the Customs Cooperation Council regarding the Convention. 1211. Transition to the Harmonized Tariff Schedule. 1212. Reference to the Harmonized Tariff Schedule. 1213. Technical amendments. 1214. Conforming amendments. 1215. N^otiating authority for certain ADP equipment. 1216. Commission report on operation of subtitle. and Competitiveness Act of 1988. Exports. Imports. International agreements. 19 u s e 2901 note. 102 STAT. 1108 PUBLIC LAW 100-418—AUG. 23, 1988 Sec. 1217. Effective dates. Subtitle C—Response to Unfair International Trade Practices PART 1—ENFORCEMENT OF UNITED STATES RIGHTS UNDER TRADE AGREEMENTS AND RESPONSES TO FOREIGN TRADE PRACTICES Sec. 1301. Revision of chapter 1 of title III of the Trade Act of 1974. Sec. 1302. Identiflcation of trade liberalization priorities. Sec. 1303. Identiflcation of countries that deny adequate and effective protection of intellectual property rights. Sec. 1304. Amendments to the National Trade Estimates. Sec. 1305. Investigation of barriers in Japan to certain United States services. . Sec. 1306. Trade and economic relations with Japan. Sec. 1307. Supercomputer trade dispute. PART 2—IMPROVEMENT IN THE ENFORCEMENT OF THE ANTIDUMPING AND COUNTERVAIUNG DUTY LAWS Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 1311. 1312. 1313. 1314. 1315. 1316. 1317. 1318. 1319. 1320. 1321. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 1322. 1323. 1324. 1325. 1326. 1327. 1328. 1329. 1330. 1331. 1332. 1333. 1334. 1335. 1336. 1337. Reference to title VII of the Tariff Act of 1930. Actionable domestic subsidies. Calculation of subsidies on certain processed agricultural, products. Revocation of status as a country under the Agreement. Treatment of international consortia. Dumping by nonmarket economy countries. Third-country dumping. Input dumping by related parties. Fictitious markets. Downstream product monitoring. Prevention of circumvention of antidumping and countervailing duty orders. Steel imports. Short life cycle products. Critical circumstances. Expedited review authority. Processed agricultural products. Leases equivalent to sales. Material injury. Threat of material injury. Cumulation. Certiflcation of submissions. Access to information. Correction of ministerial errors. Drawback treatment. Grovemmental importations. Studies. Effective dates. PART 3—PROTECTION OF INTELLECTUAL PROPERTY RIGHTS Sec. 1341. Congressional flndings and purposes. Sec. 1342. Protection under the Tariff Act of 1930. PART 4—TELECOMMUNICATIONS TRADE Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 1371. 1372. 1373. 1374. 1375. 1376. 1377. 1378. 1379. 1380. 1381. 1382. Short title. Findings and purposes. Definitions. Investigation of foreign telecommunications trade barriers. Negotiations in response to investigation. Actions to be taken if no agreement obtained. Review of trade agreement implementation by Trade Representative. Compensation authority. Consultations. Submission of data; action to ensure compliance. Study on telecommunications competitiveness in the United States. International obligations. Subtitle D—Adjustment to Import Competition PART 1—PosmvE ADJUSTMENT BY INDUSTRIES INJURED BY IMPORTS Sec. 1401. Positive adjustment by industries injured by imports. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1109 PART 2—MARKET DISRUPTION Sec. 1411. Market disruption. PART 3—TRADE ADJUSTMENT ASSISTANCE Sec. Sec. Sec. Sec. Sec. 1421. 1422. 1423. 1424. 1425. Sec. Sec. Sec. Sec. Sec. 1426. 1427. 1428. 1429. 1430. Eligibility of workers and firms for trade adjustment assistance. Notice to workers of benefits under trade adjustment assistance program. Cash assistance for workers. Job training for workers. Limitation on period in which trade readjustment allowances may be paid. Authorization of trade adjustment assistance program. Trade Adjustment Assistance Trust Fund. Imposition of small uniform fee on all imports. Study of certification methods. Effective dates. Subtitle E~National Security Sec. 1501. Imports that threaten national security. Subtitle F—Trade Agencies; Advice, Consultation, and Reporting Regarding Trade Matters PART 1—FUNCTIONS AND ORGANIZATION OF TRADE AGENCIES SUBPART A—OFFICE OF THE UNrrED STATES TRADE REPRESENTATIVE Sec. 1601. Functions. SUBPART B—UNITED STATES INTERNATIONAL TRADE COMMISSION Sec. 1611. Service on Commission for purposes of determining eligibility for designation as Chairman. Sec. 1612. Treatment of Commission under Paperwork Reduction Act. Sec. 1613. Treatment of confidential information by Commission. Sec. 1614. Trade Remedy Assistance Office. SUBPART C—INTERAGENCY TRADE ORGANIZATION Sec. 1621. Functions and organization. PART 2—ADVICE AND CONSULTATION REGARDING TRADE POUCY, NEGOTIATIONS, AND AGREEMENTS Sec. 1631. Information and advice from private and public sectors relating to trade policy and agreements. Sec. 1632. Congressional liaison regarding trade policy cmd agreements. PART 3—ANNUAL REPORTS AND NATIONAL TRADE POUCY AGENDA Sec. 1641. Reports and agenda. Subtitle G—Tariff Provisions PART 1—AMENDMENTS TO THE TARIFF SCHEDULES OF THE UNFFED STATES Sec. 1701. Reference. SUBPART A — P E R M A N E N T CHANGES IN TARIFF TREATMENT Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 1711. 1712. 1713. 1714. 1715. 1716. 1717. 1718. 1719. 1720. 1721. 1722. 1723. 1724. Broadwoven fabrics of man-made fibers. Naphtha and motor fuel blending stocks. Watches and watch components. Slabs of iron or steel. Certain work gloves. Duty-free importation of hatter's fur. Extracorporeal shock wave lithotripters. Salted and dried plums. Television apparatus and parts. Casein. Tariff treatment of certain types of plywood. Importation of furskins. Grapefruit. Silicone resins and materials. SUBPART B—TEMPORARY CHANGES IN TARIFF TREATMENT Sec. 1731. Color couplers and coupler intermediates. 102 STAT. 1110 Sec. Sec. Sec. Sec. Sec Sec. Sec. Sec. Sec. PUBLIC LAW 100-418—AUG. 23, 1988 1732. 1733. 1734. 1735. 1736. 1737. 1738. 1739. 1740. Potasdum i-Sulfobenzoate. 2,2<)xaimdobis[ethyl-3<3,5Hli-tert4)utyl-4-hydroxyphenyl)-propionate]. 2,4-Dicliloro-5.suifamoylben2oic acid. Derivatives of N-[4-(2-hydro3^-3-phenoxypropoxy)phenyl]acetanude. Certain knitwear fabricated in Guam. 3,5-Dinitro-G-toluanude. Siecondaiy-butyi chloride. Certain nonbenzenoid vinyl aoetate-vinyl chloride-ethylene terpolymers. Duty-free entry of personal effects and equipment of participants and officiads involved in the 10th Pan American games. Sec. 1741. Carding and spinning machines. Sec. 1742. Dicofol and certain mixtures. Sec. 1743. Silk yam. Sec. 1744. Terfenadone. Sec. 1745. Fluazifop-p-butyl. Sec. 1746. Parts of indirect process electrostatic copying machines. Sec. 1747. Elxtracorporeal shock vrave iithotripters imported by nonprofit institutions. Sec. 1748. Transparent plastic sheeting. Sec. 1749. Doll wig yams. Sec 1750. l-(3^ulfopropyl) pyridinium hydroxide. Sec. 1751. Polyvinylbenzyltrimethylammonium chloride (cholestyramine resin USP). Sec. 1752. Methylene blue. Sec. 1753. 3-Amin<>^methyM-butyne. Sec. 1754. Dicyclohexylbenzothiazylsulfenamide. Sec. 1755. D-6-methoxy-aHfnethyl-^naphthaleneacetic acid and its sodium salt Sec. 1756. Suspension of duties on jaoquard cards and jacquard heads. Sec 1757. 2^Bis(4-Cyanatophenyl). Sec. 1758. Phenylmethylaminopyrazole. Sec 1759. Benzethonium chloride. Sec. 1760. Maneb, zineb, mancozeb, and metiram. " Sec. 1761. Metaldehyde. Sec. 1762. Paraldehyde. Sec. 1763. Cyclosporine. Sec. 1764. Temporary reduction of duties on glass inners. Sec. 1765. Benzenoid dye intermediates. Sec. 1766. Tungsten ore. Sec 1767. Chlor amino base. Sec. 1768. Nitro sulfon B. Sec. 1769. 4-chloro-2-nitro aniline. Sec. 1770. Amino sulfon br. Sec. 1771. Acet quinone base. Sec. 1772. Diamino phenetole sulfate. Sec. 1773. Certain mixtures of cross-linked sodium polyacrylate poljmiers. Sec 1774. N-ethyl-o-toluenesulfonamide and n-ethyl-p-toluenesuuonamide. Sec. 1775. Sethoxydim. Sec 1776. 3-Ethylamino-p<TesoL Sec. 1777. Rosachloride lumps. Sec. 1778. Guanines. Sec. 1779. Diamino imid sp. Sec 1780. Certain stuffed toy figures. Sec. 1781. Kitchenware of transparent, nonglazed glass ceramics. Sec 1782. Hosiery knitting machines and needles. Sec 1783. Certain bicycle parts. Sec 1784. l,2-Dimethyl-3,5-diphenylpyrazolium methyl sulfate (difenzoquat methyl sulfate). Sec. 1785. Triallate. Sec. 1786. m-Nitro-p-anisidine. Sec. 1787. Dinocap and mixtures of dinocap and mancozeb. Sec 1788. m-Nitro-o-anisidine. Sec. 1789. p-Nitro-o4»luidine. Sec. 1790. Phenylcarbethoxypyrazolone. Sec 1791. p-Nitro-o-anisidine. Sec 1792. Caibodiimides. Sec. 1793. Triethylene glycol dichloride. Sec 1794. Mixtures of 5Hchloro-2-methyl-4-isothiazolin-3-one, 2-methyl-4-isothiazolin3-one, magnesium chloride, stsJsilizers and application adjuvants. Sec 1795. 2-n<X:tyl-4-isothiazolin-3-one, and on mixtures of 2-n-octyI-4-isothiazoUn3-one and application adjuvants. Sec. 17%. Weaving madiines for fabrics in excess of 16 feet widtli. vv^-"*-iivv'.r**'*aiBSS«f PUBLIC LAW 100-418—AUG. 23, 1988 Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 1797. 1798. 1799. 1800. 1801. 1802. 1803. 1804. 102 STAT. 1111 Barbituric acid. „>r^,,3-Methyl-5-pyrazolone. 3-Methyl-l-(p-tolyl)-2-pyrazolin-5-one (p-tolyl methyl pyrazolone). Certain offset printing presses. Frozen cranberries. m-Hydroxybenzoic acid. Certain benzenoid chemicals. Extension of certain suspension provisions. SUBPART C—EFFECTIVE DATES Sec. 1831. Effective dates. PART 2—MISCELLANEOUS PROVISIONS Sec. 1841. Certain structures and parts used in the W.M. Keck Observatory project, Mauna Kea, Hawaii. Sec. 1842. Reliquidation of certain entries and refund of antidumping duties. Sec. 1843. Reliquidation of certain tubular tin products. Sec. 1844. Certain extracorporeal shock wave lithotripter imported for use in Hawaii. Sec. 1845. Extension of the filing period for reliquidation of certain entries. Subtitle H—Miscellaneous Customs and Trade Provisions PART 1—CUSTOMS PROVISIONS Sec. Sec. Sec. Sec. Sec. Sec. 1901. 1902. 1903. 1904. 1905. 1906. Sec. Sec. Sec. Sec. Sec. Sec. 1907. 1908. 1909. 1910. 1911. 1912. Sec. Sec. Sec. Sec. Sec. 1931. 1932. 1933. 1934. 1935. Enforcement of the restrictions against imported pornography. Tare on crude oil and petroleum products. Eligible articles under the gener^uized system of preferences. Customs bond cancellation standards. Customs services at Pontiac/Oakland, Michigan, Airport. Sense of Congress requesting the President to instruct the Secretary of the Treasury to enforce section 307 of the Tariff Act of 1930 without delay. Import marking provisions. Duty-free sales enterprises. Caribbean Basin Initiative. Ethyl alcohol and mixtures for fuel use. Enforcement of restrictions on imports from Cuba. Customs Forfeiture Fund. PART 2—MISCELLANEOUS TRADE PROVISIONS Trade statistics. Ac^ustment of trade statistics for inflation and deflation. Coal exports to Japan. Purch£i8es of United States-made automotive parts by Japan. Effect of imports on crude oil production and refining capacity in the United States. Sec. 1936. Study of trade barriers established by auto producing countries to auto imports and the impact on the United States market. Sec. 1937. Lamb meat imports. PART 3—OTHER PROVISIONS Sec. 1941. Windfall profit tax repeal. TITLE II—EXPORT ENHANCEMENT Sec. 2001. Short title. --r Subtitle A—Trade and Foreign Policy PART I—RELATIONS WFTH CERTAIN COUNTRIES Sec. 2101. United States-Mexico Framework Agreement on Trade and Investment. Sec. 2102. Relations with countries providing offensive weaponry to belligerent countries in the Persian Gulf region. PART II—FAIR TRADE IN AUTO PARTS Sec. Sec. Sec. Sec. 2121. 2122. 2123. 2124. Short title. Definition. \ Establishment of initiative on auto pai;ts sales to Japan. Establishment of special advisory committee on auto parts sales in Japan. Sec. 2125. Expiration date. 102 STAT. 1112 PUBLIC LAW 100-418—AUG. 23, 1988 Subtitle B—Export Enhancement PART I—GENERAL PROVISIONS Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 2201. 2202. 2203. 2204. 2205. 2206. 2207. 2208. Commercial personnel at the American Institute of Taiwan. Country reports on economic policy and trade practices. Overseas Private Investment Corporation. Trade and Development Program. Barter and countertrade. Protection of United States intellectual property. Report on worker rights. Japanese importation of manufactured goods from less developed countries. Sec. 2209. Japan and the Arab boycott of Israel. Sec. 2210. Facilitation of jewelry trade. Sec. 2211. Loan guarantees. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 2221. 2222. 2223. 2224. 2225. 2226. 2227. PART II—ASSISTANCE TO POLAND Short title. Funding for science and technology agreement. Donation of surplus agricultural commodities. Use of Polish currencies. Eligible activities. Joint commission. Provision of medical supplies and hospital equipment to Poland. Subtitle C—Export Promotion Sec. 2301. United States and Foreign Commercial Service. Sec. 2302. Commercial Service officers and multilateral development bank procurement. Sec. 2303. Market development cooperator program. Sec. 2304. Trade shows. Sec. 2305. Authorization of appropriations for export promotion programs. Sec. 2306. United States and Foreign Commercial Service Pacific Rim initiative. Sec. 2307. Indian tribes export promotion. Sec. 2308. Printing at overseas locations. Sec. 2309. Local currencies under Public Law 480. Sec. 2310. Office of Export Trade. Sec. 2311. Report on export trading companies. Subtitle D—Export Controls Sec. 2401. Reference to the Export Administration Act of 1979. PART I—EXPORT CONTROLS GENERALLY Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 2411. 2412. 2413. 2414. 2415. 2416. 2417. 2418. 2419. 2420. 2421. 2422. 2423. 2424. 2425. 2426. 2427. 2428. 2429. Sec. Sec. Sec. Sec. 2430. 2431. 2432. 2433. Export license fees. Multiple license authority. Domestic sales to commercial entities of controlled countries. Authority for reexports. Exports to countries other than controlled countries. Control list. Trade shows. Foreign availability. Review of technology levels. Functions of technical advisory committees. Negotiations with COCOM. Goods containing microprocessors or certain other parts or components. Foreign policy controls. Exports of domestically produced crude oil. Procedures for license applications. Violations. Enforcement. Administrative procedure and judicial review. Responsibilities of the Under Secretary of Commerce for Export Administration. Authorization of appropriations. Termination date. Monitoring of wood exports. Study on national security export controls. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1113 PABT II—MULTILATERAL E^XFORT CONTROL ENHANCEMENT Sec. Sec. Sec. Sec. Sec. Sec. Sec. 2441. 2442. 2443. 2444. 2445. 2446. 2447. Short title. Findings. Mandatory sanctions against Toshiba and Kongsbeig. Mandatory sanctions for future violations. Annual report of defense impact. Improved multilateral cooperation. Technical and conforming amendments. Subtitle E—^Miscellaneous Provisions Sec. 2501. Trading With the Enemy Act Sec. 2502. Limitation on exercise of emeigency authorities. Sec. 2503. Budget Act. TITLE in—INTERNATIONAL FINANCIAL POUCY Subtitle A—^Exchange Rates and International Economic Policy Coordination Sec. 3001. Short title. Sec. 3002. Findings. Sec. 3003. Statement of policy. Sec. 3004. International negotiations on exchange rate and economic policies. Sec. 3005. Reporting requirements. Sec. 3006. D^nitions. Subtitle B—^International Dd)t PART I—^FINIHNGS, PURPOSES, AND STATEMENT OF POUCT Sec. Sec. Sec. Sec. 3101. 3102. 3103. 3104. Short title. Findings. Purposes. Statement of policy. PART II—THE INTERNATIONAL DEBT MANAGEMENT AUTHORITT Sec. 3111. International initiative. Sec. 3112. Actions to facilitate creation of the authority. Sec 3113. IMF-World Bank review. PART m—RBGULATMIT PROVISIONS AFFECTING INTERNATIONAL DEBT Sec 3121. Provisions relating to the regulation of depository institutioiis. Sec. 3122. Studies relating to the regulation of depositoiy institutions. Sec 3123. Limited purpose qiecial drawing rights for the poorest heavily inddbted countries. Subtitle C—^Multilateral Devel<qniient Banks Sec 3201. Short title. Sec. 3202. Multilateral development bank procurement. Sec Sec Sec Sec Subtitle D—Export-Import Bank and Tied Aid Credit Amendments 3301. Siorttitle. 3302. Provisions relating to tied aid credit. 3303. R^wrt on United States exports to developing countries. 3304. Ammdments to section 2(e) of the Export-Import Bank Act of 1945u Subtitle E—^Export Trading Company Act Amendments Sec 3401. Short title. Sec 3402. Export Trading Company Act Amendments. Subtitle F—^Primary Dealars Sec. 3501. Short title. Sec. 3502. Requiranent f>f national treatment in underwriting Govemmoit dd)t instruments. Subtitle G—^Financial Reports Sec. 3601. Short title. Sec 3602. Quadrennial rqmrts on foreign treatment of United States financial institutions. Sec. 3603. Fair trade in financial services. Sec 3604. Banks loan loss reserves. 102 STAT. 1114 PUBLIC LAW 100-418—AUG. 23, 1988 TITLE IV-AGRICULTURAL TRADE Sec. 4001. Short title. Subtitle A—Findings, Policy, and Purpose Sec. 4101. Findings. Sec. 4102. Policy. Sec. 4103. Purpose. Subtitle B—Agricultural Trade Initiatives PART 1—GENERAL PROVISIONS Sec. Sec. Sec. Sec. Sec. Sec. 4201. 4202. 4203. 4204. 4205. 4206. Long-term agricultural trade strategy reports. Technical assistance in trade negotiations. Joint development assistance agreements with certain trading partners. Reorganization evaluation. Contracting authority to expand agricultural export markets. Establishment of trade sissistance office. Sec. Sec. Sec. Sec. Sec. 4211. 4212. 4213. 4214. 4215. Personnel of the service. Agricultural attache educational program. Personnel resource time. Cooperator organizations. Authorization of additional appropriations. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 4301. 4302. 4303. 4304. 4305. 4306. 4307. 4308. 4309. 4310. 4311. Subtitle C—Existing Agricultural Trade Programs Triggered marketing loans and export enhancement. Price support programs for sunflower seeds and cottonseed. Multiyear agreements under the Food for Progress Program. Targeted export assistance. Export Credit Guarantee Program. Agricultural Export Enhancement Program. Agricultural attache reports. Dairy Export Incentive Program. Barter of agricultural commodities. Minimum level of food assistance. Food aid and market development. PART 2—FOREIGN AGRICULTURAL SERVICE Subtitle D—Wood and Wood Products Sec. 4401. Developing markets for wood and wood products under Public Law 480. Sec. 4402. Developing markets for wood and wood products under the Short-Term and Intermediate-Term Export Credit Guarantee Programs. Sec. 4403. Cooperative National Forest Products Marketing Program. Sec. 4404. Use &f Department of Agriculture programs. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 4501. 4502. 4503. 4504. 4505. 4506. 4507. 4508. 4509. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 4601. 4602. 4603. 4604. 4605. 4606. 4607. 4608. 4609. 4610. Subtitle E—Studies and Reports Study of Canadian wheat import licensing requirements. Import inventory. Study relating to honey. Study of dairy import quotas. Report on intermediate export credit. Imported meat, poultry products, eggs, and egg products. Study of circumvention of agricultural quotas. Study of lamb meat imports. Rose study. * Subtitle F—Miscellaneous Agricultural Provisions Allocation of certain milk. Paid advertising for Florida-grown strawberries under marketing orders. Application of marketing orders to imports. Reciprocal meat inspection requirement. Study of international marketing in land grant colleges and universities. International trade in eggs and egg products. United States access to the Korean beef market. United States access to Japanese agricultural markets. Sense of Congress relating to section 22. Technical corrections to the agricultural aid and trade mission portion of Public Law 100-202. PUBLIC LAW 100-418—AUG. 23, 1988 Sec. Sec. Sec. Sec. 4701. 4702. 4703. 4704. 102 STAT. 1115 Subtitle G—Pesticide Monitoring Improvements Short title. Pesticide monitoring and enforcement information. Foreign pesticide information. Pesticide analytical methods. TITLE V—FOREIGN CORRUPT PRACTICES AMENDMENTS; INVESTMENT; r AND TECHNOLOGY Subtitle A—Foreign Corrupt Practices Act Amendments; Review of Certain Acquisitions PART I—FOREIGN CORRUPT PRACTICES ACT AMENDMENTS Sec. 5001. Short title. Sec. 5002. Penalties for violations of accounting standards. Sec. 5003. Foreign Corrupt Practices Act Amendments. PART II—REVIEW OF CERTAIN MERGERS, ACQUISITIONS, AND TAKEOVERS • 'J Sec. 5021. Authority to review certain mergers, acquisitions, and takeovers. Subtitle B—Technology PART I—TECHNOLOGY COMPETITIVENESS Sec. 5101. Short title. > SUBPART A—NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY Sec. Sec. Sec. Sec. 5111. 5112. 5113. 5114. Findings and purposes. Establishment, functions, and activities. Repeal of provisions. Reports to Congress; studies by the National Academies of Engineering and Sciences. Sec. 5115. Technical amendments. SUBPART B—TECHNOLOGY EXTENSION ACTIVITIES AND CLEARINGHOUSE ON STATE AND LOCAL INITIATIVES Sec. 5121. Technology extension activities. Sec. 5122. Clearinghouse on State and local initiatives. '' -*• SUBPART C—ADVANCED TECHNOLOGY PROGRAM Sec. 5131. Advanced technology. SUBPART D—TECHNOLOGY REVIEWS Sec. 5141. Report of President. Sec. 5142. Semiconductor research and development. Sec. 5143. Review of research and development priorities in superconductors. fi; SUBPART E—AUTHORIZATION OF APPROPRIATIONS Sec. 5151. Authorization of appropriations for technology activities. Sec. 5152. Stevenson-Wydler Act authorizations. ,_<{, SUBPART F—MISCELLANEOUS TECHNOLOGY AND COMMERCE PROVISIONS Sec. Sec. Sec. Sec. 5161. 5162. 5163. 5164. Savings provision and user fees. Miscellaneous amendments to the Stevenson-Wydler Act. Miscellaneous technology and commerce provisions. Metric usage. '- PART II—SYMMETRICAL ACCESS TO TECHNOLOGICAL RESEARCH Sec. 5171. Symmetrical access to technological research. PART III—NATIONAL CRITICAL MATERIALS COUNCIL Sec. 5181. The national Federal program plan for advanced materials research and development. Sec. 5182. Personnel matters. Sec. 5183. Authority to accept services and personnel from other Federal etgencies. Sec. 5184. Authorization of appropriations. Subtitle C—Competitiveness Policy Council Act Sec. 5201. Short title. Sec. 5202. Findings and purposes. . 102 STAT. 1116 Sec Sec. Sec Sec Sec Sec Sec Sec PUBLIC LAW 100-418—AUG. 23, 1988 S203. 5204. 5205. 5206. 5207. 5208. 5209. 5210. Counca established. Duties of the CoundL Iftanbership. Executive Diiecfan- and staff. Powers of the CoandL Annual r^mrt. Authorizatiimaf ai^n^niations. Definitions. Subtitle D—Federal Budget Cnnpetitivimess Impact Statement Sec 5301. President's annual budget sulmilasion. S e c 5302. Annual concurrent restdutiMi on the budget. S e c 5303. Effective date. Subtitle E—Trade Data, Impact, and Studies PAST I—NATIONAI, TRAIW DATA BANK Sec Sec Sec Sec Sec Sec Sec Sec Sec Sec Sec Sec Sec 5401. 5402. 5403. 5404. 5405. 5406. 5407. 5408. 5409. 5410. 5411. 5412. 5413. D^mitirais. Interagatcy IVade Data Advisory Committee. Fimctimis^ the Committee. Consultation witii the private sector and Government oCBdals. Coc^ieration among Executive agencies. EBtablidmmtt of the Data Bank. Operation (rf^ the Data Bank. Ii^twniation on the service secbn-. Exclusion (tf information. N<mdupUcati(m. Collection of data. Fees and access. Bqxnt to Congress. PAKT n—IMPACT STATKIIEMTB AND STUDDSB Sec 5 ^ 1 . CmnpetitivoiesB impact stat^nents. Sec 5422. Study and rep(»t by the AdvisMy Council <m Fedravl Participation in Sematech. S e c 5423. Impact of nati<»al defimse expenditures on international competitiveTTTLE VI—EDUCATION AND TRAINING FOR AlCERICAN COMPETITIVENESS S e c 600L Short title. Sec 6002. Findings and purpose. Sec 6003. Definitions. S e c 6004. General provisimis. Subtitie A—Eiemaatary and Secondary ESducatioa CBAPTBB. 1—MATHEMATICS AND SCIENCE S e c 6005. Mathematics and science educati<m reauthoriaed. C^APTEB 2—ADULT LREBACT Sec Sec Sec Sec 6011. 6012. 6013. 6014. Workplace literacy partnerships grants. English literaqr grants. literacy coordination. Applic^iUty provision. CbAPRB 3—FMOIGN LANGUAGES SUBCHAPIBR A - ^ O B E i G N LANGUAGE ASSISTANCB Sec Sec Sec Sec Sec Sec 6021. 6022. 6023. 6024. 6025. 6026. aiort titie. Findings. Program authtKiaed. Allotmrat. Definitions. Authoricatifm of appropriations. SUBCHAFTEK B—PSESIDBNTIAL AWAKD POK LANGUAGES Sec 6027. Presidmtial awards. Sec 6028. Administrative provisions. S e c 6029. Authwization of aqppropriations. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1117 CHAPTER 4—SCIENCE AND MATHEMATICS ELEMENTARY AND SECONDARY BUSINESS PARTNERSHIPS Sec. 6031. Program authorized. CHAPTER 5—EDUCATIONAL PARTNERSHIPS Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 6041. 6042. 6043. 6044. 6045. 6046. 6047. 6048. 6049. Short title. Purpose. Program authorized. Authorized activities. Application. Approval of application. Computation of grant amounts. Evaluation and dissemination. Definitions. CHAPTER 6—STAR SCHOOI^ PROGRAM Sec. 6051. Pr<^am authorized. Sec. 6052. Applicability provision. CHAPTER 7—PROJECTS AND PROGRAMS DESIGNED TO ADDRESS SCHOOL DROPOUT PROBLEMS AND TO STRENGTHEN BASIC SKILLS INSTRUCTION SUBCHAPTER A—ASSISTANCE TO ADDRESS SCHOOL DROPOUT PROBLEMS Sec. Sec. Sec. Sec. Sec. Sec. Sec. 6061. 6062. 6063. 6064. 6065. 6066. 6067. Sec. Sec. Sec. Sec. Sec. Sec. 6071. 6072. 6073. 6074. 6075. 6076. Short title. Purpose. Authorization of appropriations. Grants to local educational agencies. Application. Authorized activities. Distribution of assistance; limitation on costs. SUBCHAPTER B—ASSISTANCE TO PROVIDE BASIC SKILLS IMPROVEMENT Short title. Purpose. Authorization of appropriations. Grants to local educational agencies. Authorized activities. Application. SUBCHAPTER C—GENERAL PROVISIONS Sec. 6081. General provisions. Sec. 6082. Definitions. CHAPTER 8—MISCELLANEOUS Sec. 6091. Drug-free schools program. Subtitle B—Technology and Training CHAPTER 1—TRANSFER OF EDUCATION AND TRAINING SOFTWARE Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 6101. 6102. 6103. 6104. 6105. 6106. 6107. 6108. Sec. Sec. Sec. Sec. Sec. Sec. 6111. 6112. 6113. 6114. 6115. 6116. Short title. Findings and purpose. OfRce of Training Technology Transfer. Functions of the Office. Administrative provisions. Coordination with Federal agencies. Authorization of appropriations. Definitions. CHAPTER 2—INSTRUCTIONAL PROGRAMS IN TECHNOLOGY EDUCATION Purpose. Technology education demonstration program. Applications for grants. National dissemination of information. Authorization of appropriations. Definitions. CHAPTER 3—REPUCATION OF TECHNICAL EDUCATION PROGRAMS Sec. 6121. Replication models for technical education programs designed to improve uie quality of education for America's technically trained workforce. -' 102 STAT. 1118 PUBLIC LAW 100-418—AUG. 23, 1988 CHAPTER 4—^VOCATIONAL EDUCATION PROGRAMS Sec. Sec. Sec. Sec. Sec. 6131. 6132. 6133. 6134. 6135. Adult training, retraining, and employment development. Authorization of additions!! uses of vocational education funds. Education for employment demonstration program. Industry-education partnership authorization. Demonstration program for technological Uteracy. Sec. Sec. Sec. Sec 6141. 6142. 6143. 6144. Purpose. Program authorized. Applications. Definitions. CHAPTERS—ACCESS DEMONSTRATION PROGRAMS Subtitle C—Hi^er Education CHAPTER 1—STUDENT LITERACY CORPS Sec. 6201. Student literacy corps. CHAPTER 2—SPECIAL RESEARCH FACILITIES Sec. 6211. Agriculture, s t r a t ^ c metals, minerals, forestry, and oceans college and university research facilities and instrumentation modernization program. CHAPTER 3—MINORTTT SCIENCB AND ENGINEERING IMPROVEMENT Sec 6221. Minority science and engineering improvement. CHAPTER 4—TECHNOLOGY TRANSFER CENTERS Sec 6231. Technology transfer centers. CHAPTER 5—LIBRARY TECHNOLOGY ENHANCEMENT Sec 6241. library technology enhancement. CHAPTER 6—INTERNATIONAL BUSINESS EDUCATION PROGRAM Sec. 6261. Centers for international business education authorized. Sec. 6262. Authorization of appropriations. Sec. 6263. Conforming amendment. CHAPTER 7—^ADDITIONAL HIGHER EDUCATION PROVISIONS Sec. 6271. Ronald E. McNair Post-Baccalaureate Achievement pn^gram. Sec. 6272. United States Institute of Peace. Sec Sec Sec. Sec Sec. Sec. Sec. 6301. 6302. 6303. 6304. 6305. 6306. 6307. Subtitle D—Employment and Training for Dislocated Workers Short title. Amendment to title IQ of the Job Training Partnership Act. Authorization of appropriations. Conforming amendments. Transition provisions. Studies. Job banks. SubtiUe E—^Natitmal Science Foundation University Infrastructure Sec. 6401. Short title. Sec. 6402. National Sdenoe Foundation Academic Research Facilities Modernization Program. Sec 6403. National Science Foundation College Science Instrumentation Program. Sec Sec Sec. Sec Sec 7001. 7002. 7003. 7004. 7005. TITLE Vn—BUY AMERICAN ACT OF 1988 Short title. Amendments to the Birv American Act. Procedures to prevent Government procurement discrimination. Sunset provision. Conforming amendments. TITLE Vra—SB4ALL BUSINESS Sec. 8001. Short title. Sec 8002. Declaration of policy. Sec 8003. Qianges in wTMAing Small Business Administration International Trade Office. ^y!^-trgcg''w^ ••STT* ^^jw^wap^^'y-'y? * • •' PUBLIC LAW 100-418—AUG. 23, 1988 Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. Sec. 8004. 8005. 8006. 8007. 8008. 8009. 8010. 8011. 8012. 8013. 8014. Authorization of appropriations. Export financing provided by the Administration. Small Business Development Centers. Capital formation. Small Business Innovation Research. Globalization of production. Small business trade remedy assistance. National Seminar on Small Business Exports. Trade negotiations. Promulgation of regulations. Effective date. 102 STAT. 1119 - TITLE IX—PATENTS Sec. Sec. Sec. Sec. Sec. Sec. Sec. 9001. 9002. 9003. 9004. 9005. 9006. 9007. Subtitle A—Process Patents Short title. Rights of owners of patented processes. Infringement for importation, use, or sale. Damages for infringement. Presumption in certain infringement actions. Effective date. Reports to Congress. Subtitle B—Foreign Filing Sec. 9101. Increased effectiveness of patent law. Subtitle C—Patent Term Extension Sec. 9201. Patent term extension. Sec. 9202. Procedure. TITLE X—OCEAN AND AIR TRANSPORTATION Subtitle A—Foreign Shipping Practices Sec. 10001. Short title. Sec. 10002. Foreign laws and practices. Sec. 10003. Mobile trade fairs. Subtitle B—International Air Transportation Sec. 10011. Maximum period for taking action with respect to complaints. Sec. 10012. Views of the Department of Commerce and Office of the United States Trade Representative. Sec. 10013. Reporting on actions taken with respect to complaints. SEC. 2. LEGISLATIVE HISTORY OF H.R 3 APPLICABLE. (a) IN GENERAL.—Except as provided in subsection (b), the legislative history of a title, subtitle, part, subpart, chapter, subchapter, section, or other provision of the conference report to accompany H.R. 3 of the 100th Congress (H. Rept. 100-576) shall be treated (along with any other le^slative history developed by reason of this Act) as being the legislative history of the provision of this Act that has the same numerical or alphabetical designation as the provision of the conference report. Ob) EXCEPTIONS.— (1) Subsection (a) does not apply to section 2424(a) of this Act. (2) The legislative history for subtitle F of title VI of the conference report to accompany H.R. 3 shall be treated as the legislative history for subtitle E of title VI of this Act. TITLE I—TRADE, CUSTOMS, AND TARIFF LAWS SEC. lOOL FINDINGS AND PURPOSES. (a) FINDINGS.—The Congress finds that— 19 USC 2901 "°*^ 102 STAT. 1120 PUBLIC LAW 100-418—AUG. 23, 1988 (1) in the last 10 years there has arisen a new global economy in which trade, technological development, investment, and services form an integrated system; and in this system these activities afTect each other and the health of the United States economy; (2) the United States is confronted with a fundamental disequilibrium in its trade and current account balances and a rapid increase in its net external debt; (3) such disequilibrium and increase are a result of numerous factors, including— (A) disparities between the macroeconomic policies of the major trading nations, (B) the large United States budget deficit, (C) instabilities and structural defects in the world monetary system, (D) the growth of debt throughout the developing world, (E) structural defects in the world trading system and inadequate enforcement of trade agreement obligations, (F) governmental distortions and barriers, (G) serious shortcomings in United States trade pohcy, and (H) inadequate growth in the productivity and competitiveness of United States firms and industries relative to their overseas competition; (4) it is essential, and should be the highest priority of the United States Grovemment, to pursue a broad array of domestic and international policies— (A) to prevent future declines in the United States economy and standards of living, (B) to ensure future stability in external trade of the United States, and (C) to guarantee the continued vitality of the technological, industrial, and agricultural base of the United States; (5) the President should be authorized and encouraged to negotiate trade agreements and related investment, financial, intellectual property, and services agreements that meet the standards set forth in this title; and (6) while the United States is not in a position to dictate economic policy to the rest of the world, the United States is in a position to lead the world and it is in the national interest for the United States to do so. (b) PURPOSES.—The purposes of this title are to— (1) authorize the n^otiation of reciprocal trade agreements; (2) strengthen United States trade laws; (3) improve the development and management of United States trade strat^y; and (4) through these actions, improve standards of living in the world. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1121 Subtitle A—United States Trade Agreements PART 1—NEGOTIATION AND IMPLEMENTATION OF TRADE AGREEMENTS SEC. 1101. OVERALL AND PRINCIPAL TRADE NEGOTIATING OBJECTIVES 19 USC 2901. OF THE UNITED STATES. (a) OVERALL TRADE NEGOTIATING OBJECTIVES.—The overall trade negotiating objectives of the United States are to obtain— (1) more open, equitable, and reciprocal market access; (2) the reduction or elimination of barriers and other tradedistorting policies and practices; and (3) a more effective system of international trading disciplines and procedures. (b) PRINCIPAL TRADE NEGOTIATING OBJECTIVES.— (1) DISPUTE SETTLEMENT.—The principal negotiating objectives of the United States with respect to dispute settlement are— (A) to provide for more effective and expeditious dispute settlement mechanisms and procedures; and (B) to ensure that such mechanisms within the GATT and GATT agreements provide for more effective and expeditious resolution of disputes and enable better enforcement of United States rights. (2) IMPROVEMENT OF THE GATT AND MULTILATERAL TRADE NEGOTIATION AGREEMENTS.—The principal negotiating objectives of the United States regarding the improvement of GATT and multilateral trade negotiation agreement^ are— (A) to enhance the status of the GATT; (B) to improve the operation and extend the coverage of the GATT and such agreements and arrangements to products, sectors, and conditions of trade not adequately covered; and (C) to expand country participation in particular agreements or arrangements, where appropriate. (3) TRANSPARENCY.—The principal negotiating objective of the . United States regarding transparency is to obtain broader application of the principle of transparency and clarification of the costs and benefits of trade policy actions through the observance of open and equitable procedures in trade matters by Contracting Parties to the GATT. (4) DEVELOPING COUNTRIES.—The principal negotiating objectives of the United States regarding developing countries are— (A) to ensure that developing countries promote economic development by assuming the fullest possible measure of responsibility for achieving and maintaining an open international trading system by providing reciprocal benefits and Eissuming equivalent obligations with respect to their import and export practices; and (B) to establish procedures for reducing nonreciprocal trade benefits for the more advanced developing countries. (5) CURRENT ACCOUNT SURPLUSES.—The principal negotiating objective of the United States regarding current account sur/ pluses is to develop rules to address large and persistent global ; current account imbalances of countries, including imbalances / which threaten the stability of the international trading system, / 102 STAT. 1122 PUBLIC LAW 100-418—AUG. 23, 1988 by imposing greater responsibility on such countries to undertake policy changes aimed at restoring current account equilibrium, including expedited implementation of trade agreements where feasible and appropriate. (6) TRADE AND MONETARY COORDINATION.—The principal negotiating objective of the United States regarding trade and monetary coordination is to develop mechanisms to assure greater coordination, consistency, and cooperation between international trade and monetary systems and institutions. (7) AGRICULTURE.—The principal negotiating objectives of the United States with respect to agriculture are to achieve, on an expedited basis to the maximum extent fesisible, more open and fair conditions of trade in agricultural commodities by— (A) developing, strengthening, and clarifying rules for agricultural trade, including disciplines on restrictive or trade-distorting import and export practices; (B) increasing United States agricultural exports by eliminating barriers to trade (including transparent and nontransparent barriers) and reducing or eliminating the subsidization of agricultural production consistent with the United States policy of agricultural stabilization in cyclical and unpredictable markets; (C) creating a free and more open world agricultural trading system by resolving questions pertaining to export and other trade-distorting subsidies, market pricing and ^v market access and eliminating and reducing substantially other specific constraints to fair trade and more open market access, such as tariffs, quotas, and other nontariff practices, including unjustified ph3rtosanitary and sanitary restrictions; and (D) seeking agreements by which the major agricultural exporting nations agree to pursue policies to reduce excessive production of agricultural commodities during periods of oversupply, with due regard for the fact that the United States already undertakes such policies, and without recourse to arbitrary schemes to divide market shares among major exporting countries. (8) UNFAIR TRADE PRACTICES.—The principal negotiating objectives of the United States with respect to unfair trade practices are— (A) to improve the provisions of the GATT and nontariff measure agreements in order to define, deter, discourage the persistent use of, and otherwise discipline unfair trade practices having adverse trade effects, including forms of subsidy and dumping and other practices not adequately covered such as resource input subsidies, diversionary dumping, dumped or subsidized inputs, and export targeting practices; (B) to obtain the application of similar rules to the treatment of primary and nonprimary products in the Agreement on Interpretation and Application of Articles VI, XVI, and XXIII of the GATT (relating to subsidies and countervailing measures); and (C) to obtain the enforcement of GATT rules against— (i) state trading enterprises, and PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1123 (ii) the acts, practices, or policies of any foreign government which, as a practical matter, unreasonably require that— (I) substantial direct investment in the foreign countiy be made, (II) intellectual property be licensed to the for- Copyrights. eign country or to any firm of the foreign country, Patents and trademarks. or (III) other collateral concessions be made, as a condition for the importation of any product or service of the United S t a t ^ into the foreign country or as a condition for carrying on business in the foreign country. (9) TRADE IN SERVICES.— (A) The principal n^otiating objectives of the United States r ^ a r d i n g trade in services are— (i) to reduce or to eliminate barriers to, or other distortions of, international trade in services, including barriers that deny national treatment and restrictions on establishment and operation in such markets; and (ii) to develop internationally agreed rules, including dispute settlement procedures, which— (I) are consistent with the commercial policies of the United States, and (II) will reduce or eliminate such barriers or distortions, and help ensure fair, equitable opportunities for foreign markets. (B) In pursuing the negotiating objectives described in subparagraph (A), United States n^otiators shall take into account legitimate United States domestic objectives including, but not limited to, the protection of I n t i m a t e health or safety, essential security, environmental, consumer or employment opportunity interests and the law and regulations related thereto. (10) INTELLECTUAL PROPERTY.—The principal n^otiating objectives of the United States r ^ a r d i n g intellectual property are— (A) to seek the enactment and effective enforcement by foreign countries of laws which— (i) recognize and adequately protect intellectual property, including copyr^hts, patents, trademarks, semiconductor chip layout designs, and trade secrets, and (ii) provide protection against unfair competition, (B) to establish in the GATT obligations— (i) to implement adequate substantive standards based on— CD the standards in existing international agreements that provide adequate protection, and (ID the standards in national laws if international agreement standards are inadequate or do ; not exist, (ii) to establish effective procedures to enforce, both .^ internally and at the border, the standards implemented under clause (i), and (iii) to implement effective dispute settlement procedures that improve on existing GATT procedures; (Q to recognize that the inclusion in the GATT of— CopjT-ights. Patents and trademarks. Computers 102 STAT. 1124 PUBLIC LAW 100-418—AUG. 23, 1988 (i) adequate and effective substantive norms and standards for the protection and enforcement of intellectual property rights, and (ii) dispute settlement provisions and enforcement procedures, is without prejudice to other complementary initiatives undertaken in other international organizations; and (D) to supplement and strengthen standards for protection and enforcement in existing international intellectual property conventions administered by other international organizations, including their expansion to cover new and emerging technologies and elimination of discrimination or unreasonable exceptions or preconditions to protection. (11) FOREIGN DIRECT INVESTMENT.— (A) The principal negotiating objectives of the United States regarding foreign direct investment are— (i) to reduce or to eliminate artificial or trade-distorting barriers to foreign direct investment, to expand the principle of national treatment, and to reduce unreasonable barriers to establishment; and (ii) to develop internationally agreed rules, including dispute settlement procedures, which— (I) will help ensure a free flow of foreign direct investment, and (II) will reduce or eliminate the trade distortive effects of certain trade-related investment measures. (B) In pursuing the negotiating objectives described in subparagraph (A), United States negotiators shall take into account legitimate United States domestic objectives including, but not limited to, the protection of legitimate health or safety, essential security, environmental, consumer or employment opportunity interests and the law and regulations related thereto. (12) SAFEGUARDS.—The principal negotiating objectives of the United States regarding safeguards are— (A) to improve and expand rules and procedures covering safeguard measures; (B) to ensure that safeguard measures are— (i) transparent, (ii) temporary, (iii) degressive, and (iv) subject to review and termination when no longer necessary to remedy injury and to facilitate adjustment; and (C) to require notification of, and to monitor the use by, GATT (Contracting Parties of import relief actions for their domestic industries. (13) SPECIFIC BARRIERS.—The principal negotiating objective of the United States regarding specific barriers is to obtain competitive opportunities for United States exports in foreign markets substantially equivalent to the competitive opportunities afforded foreign exports to United States markets, including the reduction or elimination of specific tariff and nontariff trade barriers, particularly— 'S-MXam--'- PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1125 (A) measures identified in the annual report prepared under section 181 of the Trade Act of 1974 (19 U.S.C. 2241); and (B) foreign tariffs and nontariff barriers on competitive United States exports when like or similar products enter the United States at low rates of duty or are duty-free, and other tariff disparities that impede access to particular export markets. (14) WORKER RIGHTS.—^The principal n^otiating objectives of the United States r^arding worker rights are— (A) to promote respect for worker rights; (B) to secure a review of the relationship of worker rights to GATT articles, objectives, and related instruments with a view to ensuring that the benefits of the trading system are available to all workers; and (C) to adopt, as a principle of the GATT, that the denial of worker rights should not be a means for a country or its industries to gain competitive advantage in international trade. (15) ACCESS TO HIGH TECHNOLOGY.— (A) The principal n^otiating objective of the United States r^arding access to h^h technology is to obtain the elimination or reduction of foreign barriers to, and acts, policies, or practices by foreign governments which limit, equitable access by United States persons to foreigndeveloped technoli^, including barriers, acts, policies, or practices which have the effect of— (i) restricting the participation of United States persons in government-supported research and development projects; (ii) denying equitable access by United States persons to government-held patents; (iii) requiring the approval or agreement of government entities, or imposing other forms of government interventions, as a condition for the granting of licenses to United States persons by foreign persons (except for approval or agreement which may be necessary for national security purposes to control the export of critical military technology); and (iv) otherwise denying equitable access by United States persons to foreign-developed technology or contributing to the inequitable flow of technology between the United States and its trading partners. (B) In pursuing the n^otiating objective described in subparagraph (A), the United States n^otiators shall take into account United States Government policies in licensing or otherwise making available to foreign persons technology and other information developed by United States laboratories. (16) BORDER TAXES.—The principal negotiating objective of the United States r^arding border taxes is to obtain a revision of the GATT with respect to the treatment of border adjustments for internal taxes to redress the disadvantage to countries relying primarily for revenue on direct taxes rather than indirect taixes. Research and development. Patents and trademarks. 102 STAT. 1126 19 u s e 2902. PUBLIC LAW 100-418—AUG. 23, 1988 SEC. 1102. TRADE AGREEMENT NEGOTIATING AUTHORITY. (a) AGREEMENTS REGARDING TARIFF BARRIERS.— (1) Whenever the President determines that one or more existing duties or other import restrictions of any foreign country or the United States are unduly burdening and restricting the foreign trade of the United States and that the purposes, policies, and objectives of this title will be promoted thereby, the President— (A) before June 1, 1993, may enter into trade agreements with foreign countries; and (B) may, subject to paragraphs (2) through (5), proclaim— (i) such modification or continuance of any existing duty, (ii) such continuance of existing duty-free or excise treatment, or (iii) such additional duties; as he determines to be required or appropriate to carry out • •^ any such trade agreement. (2) No proclamation may be made under subsection (a) that— (A) reduces any rate of duty (other than a rate of duty that does not exceed 5 percent ad valorem on the date of "df enactment of this Act) to a rate which is less than 50 percent of the rate of such duty that applies on such date of enactment; or (B) increases any rate of duty above the rate that applies on such date of enactment. (3XA) Except as provided in subparsigraph (B), the aggregate reduction in the rate of duty on any article which is in effect on any day pursuant to a trade agreement entered into under paragraph (1) shall not exceed the aggr^ate reduction which would have been in effect on such day if a reduction of 3 percent ad valorem or a reduction of one-tenth of the total reduction, whichever is greater, had taken effect on the effective date of the first reduction proclaimed in paragraph (1) to carry out such agreement with respect to such article. (B) No staging under subparagraph (A) is required with respect to a rate reduction that is proclaimed under paragraph (1) for an article of a kind that is not produced in the United States. The United Stat^ International Trade Commission shall advise the President of the identity of articles that may be exempted from staging under this subparagraph. (4) If the President determines that such action will simplify the computation of reductions under paragraph (3), the President may roimd an annual reduction by the lesser of^ (A) the difference between the reduction without r^ard to this paragraph and the next lower whole number; or (B) one-half of 1 percent ad valorem. (5) No reduction in a rate of duty under a trade agreement entered into under subsection (a) on any article may take effect more than 10 years after the effective date of the first reduction under paragraph (1) that is proclaimed to carry out the trade agreement with respect to such article. (6) A rate of duty reduction or increase that may not be proclaimed by reason of paragraph (2) may take effect only if a provision authorizing such reduction or increase is included PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1127 within an implementing bill provided for under section 1103 and that bill is enacted into law. (h) AGREEMENTS REGARDING NONTARIFF BARRIERS.— (1) Whenever the President determines that any barrier to, or other distortion of, international trade— (A) unduly burdens or restricts the foreign trade of the United States or adversely affects the United States economy; or (B) the imposition of any such barrier or distortion is likely to result in such a burden, restriction, or effect; and that the purposes, policies, and objectives of this title will be promoted thereby, the President may, before June 1, 1993, enter into a trade agreement with foreign countries providing for— (i) the reduction or elimination of such barrier or other distortion; or (ii) the prohibition of, or limitations on the imposition of, such barrier or other distortion. (2) A trade agreement may be entered into under this subsection only if such agreement makes progress in meeting the applicable objectives described in section 1101. (c) BILATERAL AGREEMENTS REGARDING TARIFF AND NONTARIFF BARRIERS.— ^ (1) Before June 1,1993, the President may enter into bilateral trade agreements with foreign countries that provide for the elimination or reduction of any duty imposed by the United States. A trade agreement entered into under this paragraph may also provide for the reduction or elimination of barriers to, or other distortions of, the international trade of the foreign country or the United States. (2) Notwithstanding any other provision of law, no trade benefit shall be extended to any country by reason of the extension of any trade benefit to another country under a trade agreement entered into under paragraph (1) with such other country. (3) A trade agreement may be entered into under paragraph (1) with any foreign country only if— (A) the agreement makes progress in meeting the applicable objectives described in section 1101; (B) such foreign country requests the negotiation of such an agreement; and (C) the President, at least 60 days before the date notice is provided under section 1103(a)(1)(A)— (i) provides written notice of such negotiations to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives, and (ii) consults with such committees regarding the negotiation of such agreement. (4) The 60-day period of time described in paragraph (3XB) shall be computed in accordance with section 1103(f). (5) In any case in which there is an inconsistency between any provision of this Act and any bilateral free trade area agreement that entered into force and effect with respect to the United States before January 1, 1987, the provision shall not apply with respect to the foreign country that is party to that agreement. 102 STAT. 1128 PUBLIC LAW 100-418—AUG. 23, 1988 (d) CONSULTATION WITH CONGRESS BEFORE AGREEMENTS ENTERED INTO.— President of U.S. 19 use 2903. (1) Before the President enters into any trade agreement under subsection (b) or (c), the President shall consult with— (A) the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate; and (B) each other committee of the House and the Senate, and each joint committee of the Congress, which has jurisdiction over legislation involving subject matters which would be affected by the trade agreement. (2) The consultation under paragraph (1) shall include— (A) the nature of the agreement; (B) how and to what extent the agreement will achieve the applicable purposes, policies, and objectives of this title; and (C) all matters relating to the implementation of the agreement under section 1103. (3) If it is proposed to implement two or more trade agreements in a single implementing bill under section 1103, the consultation under paragraph (1) shall include the desirability and feasibility of such proposed implementation. SEC. 1103. IMPLEMENTATION OF TRADE AGREEMENTS. (a) IN GENERAL.— President of U.S. Federal '^^^*®^' publication. (1) Any agreement entered into under section 1102 Ot)) or (c) shall enter into force with respect to the United States if (and only if)— (A) the President, at least 90 calendar days before the day on which he enters into the trade agreement, notifies the House of Representatives and the Senate of his intention to enter into the agreement, and promptly thereafter publishes notice of such intention in the Federal Register; (B) after entering into the agreement, the President submits a document to the House of Representatives and to the Senate containing a copy of the final legal text of the agreement, together with— (i) a dr£^t of an implementing bill, (ii) a statement of any administrative action proposed to implement the trade agreement, and (iii) the supporting information described in paragraph (2); and (C) the implementing bill is enacted into law. (2) The supporting information required under paragraph dXBXiii) consists of— (A) an explanation as to how the implementing bill and proposed administrative action will change or affect existing law; and (B) a statement— (i) £isserting that the agreement makes progress in achieving the applicable purposes, policies, and objectives of this title, (ii) setting forth the reasons of the President regarding— (I) how and to what extent the agreement makes progress in achieving the applicable purposes, policies, and objectives referred to in clause (i), and PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1129 why and to what extent the agreement does not achieve other applicable purposes, policies, and objectives, (II) how the agreement serves the interests of United States commerce, and (in) why the implementing bill and proposed administrative action is required or appropriate to carry out the agreement; (iii) describing the efforts made by the President to obtain international exchange rate equilibrium and any effect the agreement may have r^arding increased international monetary stabUity; and (iv) describing the extent, if any, to which— (I) each foreign country that is a party to the agreement maintains non-commercial state trading enterprises that may adversely affect, nullify, or impair the benefits to the United States under the agreement, and (Q) the agreement applies to or affects purchases and sales by such enterprises. (3) To ensure that a foreign country which receives benefits President of U.S. under a trade agreement entered into under section 1102 (b) or (c) is subject to the obligations imposed by such agreement, the President shall reconmoiend to Congress in the implementing bill and statement of administrative action submitted with respect to such agreement that the benefits and obligations of such agreement apply solely to the parties to such agreement, if such appUcation is consistent with the terms of such agreement. The President may also reconmiend with respect to any such agreement that the benefits and obligations of such agreement not apply uniformly to all parties to such agreement, if such application is consistent with the terms of such agreement. (b) APPLICATION OF CONGRESSIONAL "FAST TRACK" PROCEDURES TO IMPLEMENTING BILLS.— (1) Except as provided in subsection (c)— (A) the provisions of section 151 of the Trade Act of 1974 (19 U.S.C. 2191) (hereinafter in this section referred to as "fast track procedures") apply to implementing bills submitted with respect to trade agreements entered into under section 1102 (b) or (c) before June 1, 1991; and (B) such fast track procedures shall be extended to implementing bills submitted with respect to trade agreements entered into under section 1102 (b) or (c) after May 31,1991, and before June 1,1993, if (and only if)— (i) the President requests such extension under paragraph (2); and (ii) neither House of the Congress adopts an extension disapproval resolution under paragraph (5) before June 1,1991. (2) If the President is of the opinion that the fast track President of U.S. procedures should be extended to implementing bills described Reports. in paragraph (1)(B), the President must submit to the (Dongress, no later than March 1, 1991, a written report that contains a request for such extension, together with— (A) a description of all trade agreements that have been n^otiated under section 1102 (b) or (c) and the anticipated 102 STAT. 1130 President of U.S. Reports. Reports. PUBLIC LAW 100-418—AUG. 23, 1988 schedule for submitting such agreements to the Congress for approval; (B) a description of the progress that has been made in multilateral and bilateral negotiations to achieve the purposes, policies, and objectives of this title, and a statement that such progress justifies the continuation of negotiations; and (C) a statement of the reasons why the extension is needed to complete the negotiations. (3) The President shall promptly inform the Advisory Committee for Trade Policy and Negotiations established under section 135 of the Trade Act of 1974 (19 U.S.C. 2155) of his decision to submit a report to Congress under paragraph (2). The Advisory Committee shall submit to the Congress as soon as practicable, but no later than March 1,1991, a written report that contains— (A) its views regarding the progress that has been made in multilateral and bilateral negotiations to achieve the purposes, policies, and objectives of this title; and (B) a statement of its views, and the reasons therefor, regarding whether the extension requested under paragraph (2) should be approved or disapproved. (4) The reports submitted to the Congress under paragraphs (2) and (3), or any portion of the reports, may be classified to the extent the President determines appropriate. (5XA) For purposes of this subsection, the term "extension disapproval resolution" means a resolution of either House of the Congress, the sole matter after the resolving clause of which is as follows: "That the disapproves the request of the President for the extension, under section 1103(bXlXBXi) of the Omnibus Trade and Competitiveness Act of 1988, of the provisions of section 151 of the Trade Act of 1974 to any implementing bill submitted with respect to any trade agreement entered into under section 1102 (b) or (c) of such Act after May 31, 1991, because sufficient tangible progress has not been made in trade negotiations.", with the blank space being filled with the name of the resolving House of the Congress. (B) Extension disapproval resolutions— (i) may be introduced in either House of the Congress by any member of such House; and (ii) shall be jointly referred, in the House of Representatives, to the Committee on Ways and Means and the Committee on Rules. (C) The provisions of section 152 (d) and (e) of the Trade Act of 1974 (19 U.S.C. 2192 (d) and (e)) (relating to the fioor consideration of certain resolutions in the House and Senate) apply to extension disapproval resolutions. (D) It is not in order for— (i) the Senate to consider any extension disapproval resolution not reported by the Committee on Finance; (ii) the House of Representatives to consider any extension disapproval resolution not reported by the Committee on Ways and Means and the Committee on Rules; or (iii) either House of the Congress to consider an extension disapproval resolution that is reported to such House after May 15,1991. (c) LIMITATIONS ON USE OF "FAST TRACK" PROCEDURES.— PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1131 dXA) The fast track procedures shall not apply to any implementing bill submitted with respect to a trade agreement entered into under section 1102 0)) or (c) if both Houses of the Congress separately agree to procedural disapproval resolutions within any 60-day period. (B) Procedural d ^ p p r o v a l resolutions— (i) in the House of Representatives— (I) shall be introduced by the chairman or ranking minority member of the Committee on Wa)rs and Means or the chairman or ranking minority member of the Committee on Rules, (II) shall be jointly referred to the Committee on Ways and Means and the Committee on Rules, and (HI) may not be amended by either Committee; and (ii) in the Senate shall be original resolutions of the Committee on Finance. (C) The provisions of section 152 (d) and (e) of the Trade Act of 1974 (19 U.S.C. 2192 (d) and (e)) (relating to the floor consideration of certain resolutions in the House and Senate) apply to procedural disapproval resolutions. CD) It is not in order for the House of Representatives to consider any procedural disapproval resolution not reported by the (Committee on Ways and Means and the (Ik)mmittee on Rules. (E) For purposes of this subjection, the term "procedural disapproval resolution" means a resolution of either House of the Congress, the sole matter after the resolving clause of which is as follows: "That the President has failed or refused to consult with (Congress on trade n^otiations and trade agreements in accordance with the provisions of the Omnibus Trade and Competitiveness Act of 1988, and, therefore, the provisions of section 151 of the Trade Act of 1974 shall not apply to any implementing bill submitted with respect to any trade agreement entered into under section 1102 (b) or (c) of such Act of 1988, if, during the 60-day period b ^ i n n i n g on the date on which this resolution is agreed to by the , the agrees to a procedural disapproval resolution (within the meaning of section 1103(cXlXE) of such Act of 1988).", with the first blank space being filled with the name of the resolving House of the (Congress and the second blank space being filled with the name of the other House of the (Dongress. (2) The fast track procedures shall not apply to any implementing bill that contains a provision approving of any trade agreement which is entered into under section 1102(c) with any foreign country if either— (A) the requirements of section 1102(cX3) are not met with respect to the n^otiation of such agreement; or (B) the Committee on Finance of the Senate or the Committee on Ways and Means of the House of Representatives disapproves of the negotiation of such agreement before the close of the 60-day period which begins on the date notice is provided under section 1102(cX3XCXi) with respect to the negotiation of such agreement. (d) RULES OF HOUSE OF REPRESENTATIVES AND SENATE.—Subsec- tions (b) and (c) are enacted by the C!ongress— (1) as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and as such is 102 STAT. 1132 PUBLIC LAW 100-418—AUG. 23, 1988 deemed a part of the rules of each House, respectively, and such procedures supersede other rules only to the extent that they are inconsistent with such other rules; and (2) with the full recognition of the constitutional right of either House to change the rules (so far as relating to the procedures of that House) at any time, in the same manner, and to the same extent as any other rule of that House. (e) COMPUTATION OF CERTAIN PERIODS OF TIME.—Each period of time described in subsection (cXl) (A) and (E) and (2) of this section shall be computed without regard to— (1) the days on which either House of Congress is not in session because of an adjournment of more than 3 days to a day certain or an adjournment of the Congress sine die; and (2) any Saturday and Sunday, not excluded under paragraph (1), when either House of the Congress is not in session. SEC. 1104. COMPENSATION AUTHORITY. Section 123 of the Trade Act of 1974 (19 U.S.C. 2133) is amended— (1) by amending subsection (a) to read as follows: "(a) Whenever— "(1) any action taken under chapter 1 of title II or chapter 1 of title III; or "(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."; (2) by amending subsection (b)(2) by— (A) striking out "section 109" and inserting "section 1102(a) of the Omnibus Trade and Competitiveness Act of 1988", and (B) striking out "section 101" each place it appears and inserting "such section 1102(a)"; (3) by striking out "section 101" in subsection (d) and inserting "section 1102 of the Omnibus Trade and Competitiveness Act of 1988"; and (4) by adding at the end thereof the following new subsection: "(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 e 2904. SEC. 1105. TERMINATION AND RESERVATION AUTHORITY; RECIPROCAL NONDISCRIMINATORY TREATMENT. (a) IN GENERAL.—For purposes of applying sections 125, 126(a), and 127 of the Trade Act of 1974 (19 U.S.C. 2135, 2136(a), and 2137)— (1) any trade agreement entered into under section 1102 shall be treated as an agreement entered into under section 101 or PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1133 102, as appropriate, of the Trade Act of 1974 (19 U.S.C. 2111 or 2112); and (2) any proclamation or Executive order issued pursuant to a trade agreement entered into under section 1102 shall be treated as a proclamation or Executive order issued pursuant to a trade agreement entered into under section 102 of the Trade Act of 1974. Ot)) RECIPROCAL NONDISCRIMINATORY TREATMENT.— President of U.S. (1) The President shall determine, before June 1, 1993, whether any major industrial country has failed to make concessions under trade agreements entered into under section 1102 (a) and (b) which provide competitive opportunities for the commerce of the United States in such country substantially equivalent to the competitive opportunities, provided by concessions made by the United States under trade agreements entered into under section 1102 (a) and OJ), for the commerce of such country in the United States. (2) If the President determines under paragraph (1) that a major industrial country has not made concessions under trade agreements entered into under section 1102 (a) and 0)) which provide substantially equivalent competitive opportunities for the commerce of the United States, the President shall, either generally with respect to such country or by article produced by such country, in order to restore equivalence of competitive opportunities, recommend to the Congress— (A) legislation providing for the termination or denial of the benefits of concessions of trade agreements entered into under section 1102 (a) and Ot>) that have been made with respect to rates of duty or other import restrictions imposed by the United States, and (B) legislation providing that any law necessary to carry out any trade agreement under section 1102 (a) or 0)) not apply to such country. (3) For purposes of this subsection, the term "major industrial country" means Canada, the European Communities, the individual member countries of the European Communities, Japan, and any other foreign country designated by the President for purposes of this subsection. SEC. 1106. ACCESSION OF STATE TRADING REGIMES TO THE GENERAL 19 USC 2905. AGREEMENT ON TARIFFS AND TRADE. (a) IN GENERAL.—Before any major foreign country accedes, after President of U.S. the date of enactment of this Act, to the GATT the President shall determine— (1) whether state trading enterprises account for a significant share of— (A) the exports of such major foreign country, or (B) the goods of such major foreign country that are subject to competition from goods imported into such foreign country; and (2) whether such state trading enterprises— (A) unduly burden and restrict, or adversely affect, the foreign trade of the United States or the United States economy, or (B) are likely to result in such a burden, restriction, or effect. 19-194 O—91—Part 2 5 : OT. .1 102 STAT. 1134 PUBLIC LAW 100-418—AUG. 23, 1988 (b) EFFECTS OF AFFIRMATIVE DETERMINATION.—If both of the determinations made under paragraphs (1) and (2) of subsection (a) with respect to a major foreign country are affirmative— President of U.S. (1) the President shall reserve the right of the United States to withhold extension of the application of the GATT, between the United States and such major foreign country, and (2) the GATT shall not apply between the United States and such major foreign country until— (A) such foreign country enters into an agreement with the United States providing that the state trading enterprises of such foreign country— (i) will— (I) make purchases which are not for the use of such foreign country, and (II) make sales in international trade, in accordance with commercial considerations (including price, quality, avgiilability, marketabihty, and transportation), and (ii) will afford United States business firms adequate opportunity, in accordance with customary practice, to compete for participation in such purchases or sales; or (B) a bill submitted under subsection (c) which approves of the extension of the application of the GATT between the United States and such major foreign country is enacted into law. (c) EXPEDITED CONSIDERATION OF BILL T O APPROVE EXTENSION.— (1) The President may submit to the Congress any draft of a bill which approves of the extension of the application of the GATT between the United States and a major f o r e ^ country. (2) Any draft of a bill described in paragraph (1) that is submitted by the President to the Congress shall— (A) be introduced by the majority leader of each House of the Congress (by request) on the first day on which such House is in session after the date such draft is submitted to the Congress; and (B) shall be treated as an implementing bill for purposes of subsections (d), (e), (f), and (g) of section 151 of the Trade Act of 1974. President of U.S. (d) PUBLICATION.—The President shall publish in the Federal Federal Register each determination made under subsection (a). publication. 19 use 2906. SEC. 1107. DEFINITIONS AND CONFORMING AMENDMENTS. (^) DEFINITIONS.-For purposes of this part: (1) The term "distortion" includes, but is not limited to, a subsidy. (2) The term " f o r e i ^ country" includes any foreign instrumentality. Any territory or possession of a foreign country that is administered separately for customs purposes, shall be treated as a separate foreign country. (3) The term "GATT" means the General Agreement on Tariffs and Trade. (4) The term "implementing bill" has the meaning given such term in section 151(bXl) of the Trade Act of 1974 (19 U.S.C. 2191(bXl)). (5) The term "international trade" includes, but is not limited to— (A) trade in both goods and services, and "^nMm^ PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1135 (B) foreign direct investment by United States persons, especiedly if such investment has implications for trade in goods and services. (6) The term "state trading enterprise" means— (A) any agency, instrumentality, or administrative unit of a foreign country which— (i) purchases goods or services in international trade for any purpose other than the use of such goods or services by such agency, instrumentality, administrative unit, or foreign country, or (ii) sells goods or services in international trade; or (B) any business firm which— (i) is substantially owned or controlled by a foreign country or any agency, instrumentality, or administrative unit thereof, (ii) is granted (formally or informally) any special or exclusive privilege by such foreign country, agency, instrumentality, or administrative unit, and (iii) purchases goods or services in international trade for any purpose other than the use of such goods or services by such foreign country, agency, instrumentality, or administrative unit, or which sells goods or services in international trade, (b) CONFORMING AMENDMENTS.— (1) Section 151(bKl) of the- Trade Act of 1974 (19 U.S.C. 2191(bXl)) is amended by striking out "section 102" and inserting "section 102 of this Act or section 1103(aXl) of the Omnibus Trade and Competitiveness Act of 1988". (2) Section 121 of the Trade Act of 1974 (19 U.S.C. 2131) is amended by striking out subsections (a), (b), and (c). PART 2—HEARINGS AND ADVICE CONCERNING NEGOTIATIONS SEC. 1111. HEARINGS AND ADVICE. (a) ADVICE FROM I T C AND OTHER FEDERAL AGENCIES CONCERNING TRADE POUCY AND NEGOTIATIONS.—Sections 131 through 134, inclu- sive, of the Trade Act of 1974 (19 U.S.C. 2151-2154) are amended to read as follows: "SEC. 131. ADVICE FROM INTERNATIONAL TRADE COMMISSION. 19 USC 2151. "(a) LISTS OF ARTICLES WHICH MAY B E CONSIDERED FOR ACTION.— "(1) In connection with any proposed trade agreement under President of U.S. section 123 of this Act or section 1102 (a) or (c) of the Omnibus Trade and Competitiveness Act of 1988, the President shall from time to time publish and furnish the International Trade Commission (hereafter in this section referred to as the 'Commission') with lists of articles which may be considered for modification or continuance of United States duties, continuance of United States duty-free or excise treatment, or additional duties. In the case of any article with respect to which consideration may be given to reducing or increasing the rate of duty, the list shall specify the provision of this subchapter under which such consideration may be given. "(2) In connection with any proposed trade agreement under section 1102 (b) or (c) of the Omnibus Trade and Competitive- 102 STAT. 1136 Copyrights. Patents and trademarks. Securities. Consumer protection. PUBLIC LAW 100-418—AUG. 23, 1988 ness Act of 1988, the President may from time to time publish and furnish the Commission with lists of nontariff matters which may be considered for modification. "(b) ADVICE TO PRESIDENT BY COMMISSION.—Within 6 months after receipt of a list under subsection (a) or, in the case of a list submitted in connection with a trade agreement, within 90 days after receipt of such list, the Commission shall advise the President, with respect to each article or nontariff matter, of its judgment as to the probable economic effect of modification of the tariff or nontariff measure on industries producing like or directly competitive articles and on consumers, so as to assist the President in making an informed judgment as to the impact which might be caused by such modifications on United States interests, such as sectors involved in manufacturing, agriculture, mining, fishing, services, intellectual property, investment, labor, and consumers. Such advice may include in the case of any article the advice of the Commission as to whether any reduction in the rate of duty should take place over a longer period of time than the minimum period provided for in section 1102(a)(3XA). "(c) ADDITIONAL INVESTIGATIONS AND REPORTS REQUESTED BY THE PRESIDENT OR THE TRADE REPRESENTATIVE.—In addition, in order to assist the President in his determination whether to enter into any agreement under section 123 of this Act or section 1102 of the Omnibus Trade and Competitiveness Act of 1988, or how to develop trade policy, priorities or other matters (such as priorities for actions to improve opportunities in foreign markets), the Commission shall make such investigations and reports as may be requested by the President or the United States Trade Representative on matters such as effects of modification of any barrier to (or other distortion of) international trade on domestic workers, industries or sectors, purchasers, prices and quantities of articles in the United States. "(d) COMMISSION STEPS IN PREPARING ITS ADVICE TO THE PRESI- Employment and unemployment. Employment and unemplojrment. Wages. Consumer protection. Copyrights. Patents and trademarks. Securities. DENT.—In preparing its advice to the President under this section, the Commission shall to the extent practicable— "(1) investigate conditions, causes, and effects relating to competition between the foreign industries producing the articles or services in question and the domestic industries producing the like or directly competitive articles or services; (2) analyze the production, trade, and consumption of each like or directly competitive article or service, taking into consideration employment, profit levels, and use of productive facilities with respect to the domestic industries concerned, and such other economic factors in such industries as it considers relevant, including prices, wages, sales, inventories, patterns of demand, capital investment, obsolescence of equipment, and diversification of production; "(3) describe the probable nature and extent of any significant change in emplo5mient, profit levels, and use of productive facilities; the overall impact of such or other possible changes on the competitiveness of relevant domestic industries or sectors; and such other conditions as it deems relevant in the domestic industries or sectors concerned which it believes such modifications would cause; and "(4) make special studies (including studies of real wages paid in foreign supplying countries), whenever deemed to be >yarranted, of particular proposed modifications affecting United States manufacturing, agriculture, mining, fishing, labor. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1137 consumers, services, intellectual property and investment, using to the fullest extent practicable United States Government facilities abroad and appropriate personnel of the United States. "(e) PuBuc HEARING.—^In preparing its advice to the President under this section, the Commission shall, after reasonable notice, hold public hearings. "SEC. 132. ADVICE FROM EXECUTIVE DEPARTMENTS AND OTHER President of U.S. SOURCES. 19 u s e 2152. "Before any trade agreement is entered into under section 123 of this Act or section 1102 of the Omnibus Trade and Competitiveness Act of 1988, the President shall seek information and advice with respect to such agreement from the Departments of Agriculture, Commerce, Defense, Interior, Labor, State and the Treasury, from the United States Trade Representative, and from such other sources as he may deem appropriate. Such advice shall be prepared and presented consistent with the provisions of Reorganization Plan Number 3 of 1979, Executive Order Number 12188 and section 141(c). •SEC. 133. PUBLIC HEARINGS. 19 u s e 2153. "(a) OPPORTUNITY FOR PRESENTATION OF VIEWS.—In connection President of u.s. with any proposed trade agreement under section 123 of this Act or section 1102 of the Omnibus Trade and Competitiveness Act of 1988, the President shall afford an opportunity for any interested person to present his views concerning any article on a list published under section 131, any matter or article which should be so listed, any concession which should be sought by the United States, or any other matter relevsmt to such proposed trade agreement. For this Regulations, purpose, the President shall designate an agency or an interagency committee which shall, after reasonable notice, hold public hearings and prescribe regulations governing the conduct of such hearings. When appropriate, such procedures shall apply to the development of trade policy and priorities. "(b) SUMMARY OF HEARINGS.—The organization holding such hearing shall furnish the President with a summary thereof. "SEC. 134. PREREQUISITES FOR OFFERS. 19 u s e 2154. "(a) In any negotiation seeking an agreement under section 123 of Copyrights. this Act or section 1102 of the Omnibus Trade and Competitiveness Patents and Act of 1988, the President may make a formal offer for the modifica- trademarks. tion or continuance of any United States duty, import restrictions, or barriers to (or other distortions of) international trade, the continuance of United States duty-free or excise treatment, or the imposition of additional duties, import restrictions, or other barrier to (or other distortion of) international trade including trade in services, foreign direct investment and intellectual property as covered by this title, with respect to any article or matter only after he has received a summary of the hearings at which an opportunity to be heard with respect to such article has been afforded under section 133. In addition, the President may make an offer for the modification or continuance of any United States duty, the continuance of United States duty-free or excise treatment, or the imposition of additional duties, with respect to any article included in a list published and furnished under section 131(a), only after he has received advice concerning such article from the Commission under section 131(b), or after the expiration of the 6-month or 90-day 102 STAT. 1138 PUBLIC LAW 100-418—AUG. 23, 1988 period provided for in that section, as appropriate, whichever first occurs. President of U.S. "(b) In determining whether to make offers described in subsection (a) in the course of negotiating any trade agreement under section 1102 of the Omnibus Trade and Competitiveness Act of 1988, and in determining the nature and scope of such offers, the President shall take into account any advice or information provided, or reports submitted, by— "(1) the Commission; "(2) any advisory committee established under section 135; or "(3) any organization that holds public hearings under section 133; with respect to any article, or domestic industry, that is sensitive, or potentially sensitive, to imports.". PART 3—OTHER TRADE AGREEMENT AND NEGOTIATION PROVISIONS SEC. 1121. IMPLEMENTATION OF NAIROBI PROTOCOL. (a) PURPOSE AND REFERENCE.— (1) The purpose of this section is— (A) to provide for the implementation by the United States of the Protocol (S. Treaty Doc. 97-2, 9; hereafter referred to in this section as the "Nairobi Protocol") to the Agreement on the Importation of Educational, Scientific, and Cultural Materials (17 UST (pt. 2) 1835; commonly known as the "Florence Agreement"); (B) to clarify or modify the duty-free treatment accorded under the Educational, Scientific, and Cultural Materials Importation Act of 1982 (Public Law 97-446, 96 Stat. 23462349), the Educational, Scientific, and Cultural Materials Importation Act of 1966 (Public Law 89-65, 80 Stat. 897 et seq.), and Public Law 89-634 (80 Stat. 879); and (C) to continue the safeguard provisions concerning certain imported articles provided for in the Educational, Scientific, and Cultural Materials Importation Act of 1982. (2) Whenever an amendment or repeal in this section is expressed in terms of an amendment to, or repeal of, an item, headnote. Appendix, or other provision, the reference shall be considered to be made to an item, headnote. Appendix, or other provision of the Tariff Schedules of the United States. (b) REPEAL OF THE EDUCATIONAL, SCIENTIFIC, AND CULTURAL MATE- RIALS IMPORTATION ACT OF 1982.—The Educational, Scientific, and Cultural Materials Importation Act of 1982 is hereby repealed. (c) TREATMENT OF PRINTED MATTER AND CERTAIN OTHER ARTICLES.— (1) Items 270.45 and 270.50 are redesignated as items 270.46 and 270.48, respectively. (2) Part 5 of schedule 2 is amended— (A) by inserting in numerical sequence the following new item: PUBLIC LAW 100-418—AUG. 23, 1988 270.90 Catalogs of films, recordings, or other visual and auditory material of an educational, scientific, or cultural character Free 102 STAT. 1139 Free and (B) by striking out items 273.45, 273.50, and 273.55 and the superior heading thereto and inserting in lieu thereof the following new item having the same degree of indentation as item 273.35: 273.52 Architectural, engineering, industrial, or commercial drawings and plans, whether originals or reproductions Free Free (3XA) The superior heading to items 274.50, 274.60, 274.65, and 274.70 is amended by inserting "(including developed photographic film; photf^aphic slides; transparencies; holograms for laser projection; and microfilm, microfiches and similar articles except those provided for in item 737.52)" after "Photographs". (B) Part 5 of schedule 2 is amended by inserting in numerical sequence the following new items under the superior heading " R i n t e d not over 20 years at time of importation:", and before, and with the same d ^ r e e of indentation as, "Lithographs on paper": 274.55 274.56 Loose illustrations, reproduction proofe or reproduction films used for the production of books Free Articles provided for in items 270.05, 270.10, 270.25, 270.55, 270.63, 270.70, and 273.60 in the form of microfilm, microfiches, and similar film media Free Free Free (O Subpart D of part 5 of schedule 7 is amended by striking out item 735.20 and inserting in lieu thereof the following new items with a superior heading having the same d ^ r e e of indentation as item 735.18: 735.21 735.24 Puzzles; game, sport, gymnastic, athletic, or playground equipment; all the forgoing, and parts thereof, not specially provided for Crossword puzzle books, whether or not in the form of microfilm, microfiches, or similar film media Free Other 5.52% ad vaL Free 40%adval. 102 STAT. 1140 PUBLIC LAW 100-418—AUG. 23, 1988 (D) Item 737.52 is amended by inserting "(whether or not in the form of microfilm, microfiches, or similar film media)" after "Toy books". (E) Item 830.00 is amended by inserting "; official government publications in the form of microfilm, microfiches, or similar film media" after "not developed". (F) Item 840.00 is amended by inserting ", whether or not in the form of microfilm, microfiches, or similar film media" after "documents". (d) VISUAL AND AUDITORY MATERIAL.— (1) Headnote 1 to part 7 of schedule 8 is amended to read as follows: " 1 . (a) No article shall be exempted from duty under item 870,30 unless either— "(i) a Federal agency (or agencies) designated by the President determines that such article is visual or auditory material of an educational, scientific, or cultural character within the meaning of the Agreement for Facilitating the International Circulation of Visual and Auditory M a t e r i a l of an Educational, Scientific, or Cultural Character (17 UST (pt. 2) 1578; Beirut Agreement), or "(ii) such article— "(A) is imported by, or certified by the importer to be for the use of, any public or private institution or association approved as educational, scientific, or cultural by a Federal agency or agencies designated by the President for the purpose of duty-free admission pursuant to the Nairobi Protocol to the Florence Agreement, and "(B) is certified by the importer to be visual or auditory material of an educational, scientific, or cultural character or to have been produced by the United Nations or any of its specialized agencies. For purposes of subparagraph (i), whenever the President determines that there is, or may be, profitmaking exhibition or use of articles described in item 870.30 which interferes significantly (or threatens to interfere significantly) with domestic production of similar articles, he may prescribe r ^ u l a t i o n s imposing restrictions on the entry under that item of such foreign articles to insure that they will be exhibited or used only for nonprofitmaking purposes. "0)) For purposes of items 870.32 through 870.35, inclusive, no article shall be exempted from duty unless it meets the criteria set forth in subparagraphs (aXii) (A) and (B) of this headnote.". (2) Item 870.30 is amended— (A) by inserting "(except toy models)" after "models", and (B) by striking out "headnote 1" and inserting in lieu thereof "headnote 1(a)". (3) Part 7 of schedule 8 is amended by inserting in numerical sequence the following new items with a superior heading at the same degree of indentation as item 870.30: Articles determined to be visual or auditory materials in accordance with headnote 1 of this part: IMSiS*.-' PUBLIC LAW 100-418—AUG. 23, 1988 870.32 870.33 870.34 870.35 Holograms for laser projection; micronim, microfiches, and similar articles Motion-picture films in any form on which pictures, or sound and pictures, have been recorded, whether or not developed Sound recordings, combination sound and visual recordings, and magnetic recordings; video discs, video tapes, and similar articles Patterns and wall charts; globes; mock-ups or visualizations of abstract concepts such as molecular structures or mathematical formulae; materials for programmed instruction; and kits containing printed materials and audio materials and visual materials or any combination of two or more of the foregoing Free Free Free Free Free Free Free Free 102 STAT. 1141 (e) TOOLS FOR SCIENTIFIC INSTRUMENTS OR APPARATUS.—Part 4 of schedule 8 is amended by inserting in numerical sequence the following new item having the same degree of indentation as item 852.20: 851.67 Tools specially designed to be used for the maintenance, checking, gauging or repair of scientiHc instruments or apparatus admitted under item 851.60 Free Free (f) ARTICLES FOR THE B U N D AND FOR OTHER HANDICAPPED PERSONS.— (1) Subpart D of part 2 of schedule 8 is amended by striking out items 825.00, 826.10, and 826.20. (2) The headnotes to part 7 of schedule 8 are amended— (A) by adding at the end thereof the following new headnote: "4. (a) For purposes of items 870.65, 870.66, and 870.67, the term 'blind or other physically or mentally handicapped persons' includes any person suffering from a permanent or chronic physical or mental impairment which substantially limits one or more major life activities, such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, and working. "(b) Items 870.65, 870.66, and 870.67 do not cover— "(i) articles for acute or transient disability; 102 STAT. 1142 PUBLIC LAW 100-418—AUG. 23, 1988 "(ii) spectacles, dentures, and cosmetic articles for individuals not substantially disabled; "(iii) therapeutic and diagnostic articles; or "(iv) medicine or drugs.". (3) Part 7 of schedule 8 is amended by inserting in numerical sequence the following new items with a superior heading having the same degree of indentation as item 870.45: 870.65 870.66 870.67 Articles specially designed or adapted for the use or benefit of the blind or other physically or mentally handicapped persons: Articles for the blind: Books, music, and pamphlets, in raised print, used exclusively by or for them Free Braille tablets, cubarithms, and special apparatus, machines, presses, and types for their use or benefit exclusively Free Other Free Free Free Free (g) AUTHORITY TO LIMIT CERTAIN DUTY-FREE TREATMENT.— (1)(A) The President may proclaim changes in the Tariff Schedules of the United States to narrow the scope of, place conditions upon, or otherwise eliminate the duty-free treatment accorded by reason of the amendments made by subsection (e) or (f) with respect to any type of article the duty-free treatment of which has significant adverse impact on a domestic industry (or portion thereof) manufacturing or producing a like or directly competitive article, if the effect of such change is consistent with the provisions of the relevant annexes of the Florence Agreement or the Nairobi Protocol. (B) If the President proclaims changes to the Tariff Schedules of the United States under subparagraph (A), the rate of duty thereafter applicable to any article which is— (i) affected by such action, and (ii) imported from any source, shall be the rate determined and proclaimed by the President as the rate which would then be applicable to such article from such source if this section had not been enacted. (2) If the President determines that any duty-free treatment which is no longer in effect because of action taken under paragraph (1) could be restored, in whole or in part, without a resumption of significant adverse impact on a domestic industry or portion thereof, the President may proclaim changes to the Tariff Schedules of the United States to resume such duty-free treatment. (3) Before taking any action under paragraph (1) or (2), the President shall afford an opportunity for interested Government agencies and private persons to present their views concerning the proposed action. ar-^^'-mim'^'-'"-''^' PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1143 (4) Any action in effect or any proceeding in progress under section 166 of the Educational, Scientific, and Cultural Materials Importation Act of 1982 on the day that Act is repealed shall be considered as an action or proceeding under this section and shall be continued or resumed under this section, (h) AUTHORITY T O EXPAND CERTAIN DUTY-FREE TREATMENT ACCORDED BY REASON OF SUBSECTION (d).— (1) If the President determines such action to be in the interest of the United States, the President may proclaim changes to the Tariff Schedules of the United States in order to remove or modify any condition or restriction imposed under headnote 1 to part 7 of schedule 8 (as amended by subsection (d) of this section) of such Schedules, on the importation of articles provided for in items 870.30 through 870.35, inclusive (except as to articles entered under the terms of headnote l(aXi) to part 7 of schedule 8) of such Schedules, in order to implement the provisions of annex O l of the Nairobi Protocol. (2) Any change to the Tariff Schedules of the United States Effective date. proclaimed under paragraph (1) shall be effective with respect to articles entered, or withdrawn from warehouse, for consumption on or after the date that is 15 days after the date on which the President proclaims such change, (i) STATISTICAL INFORMATION.—In order to implement effectively the provisions of subsection (g), the Secretary of the Treasury, in conjunction with the Secretary of (Commerce, shall take such actions as are necessary to obtain adequate statistical information with respect to articles to which amendments made by subsection (c) apply, in such detail and for such period as the Secretaries consider necessary, (j) EFFECTIVE DATE.— (1) The provisions of this section, and the repeal and amendments made by this section, shall apply with respect to articles entered, or withdrawn from warehouse, for consumption on or after the later of— (A) October 1,1988, or (B) the date that is 15 days after the deposit of the United States ratification of the Nairobi Protocol. (2) Notwithstanding section 514 of the Tariff Act of 1930 or any other provision of law, upon request filed with the appropriate customs officer on or before the date that is 180 days after the later of the dates described in subparagraphs (A) and (B) of paragraph (1), any entry, or withdrawal from warehouse, of any article— (A) which was made on or after August 12, 1985, and before such later date, and (B) with respect to which there would have been no duty if the provisions of this section, or any amendments made by this section, applied to such entry or withdrawal, shall be liquidated or reliquidated as though such entry or withdrawal had been made on or after such later date. SEC. 1122. IMPLEMENTATION OF UNITED STATES-EC AGREEMENT ON CITRUS AND PASTA. (a) PURPOSE.—The purpose of this section is to provide for the implementation of tariff reductions agreed to by the United States in the Agreement between the European (Dommunities and the PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1144 United States, concluded February 24, 1987, with respect to citrus and pasta. (b) PROCLAMATION AUTHORITY.— President of U.S. (1) The amendments made by subsection (c) shall apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after a date occurring after September 30, 1988, that is proclaimed by the President as being appropriate to carry out the Agreement referred to in subsection (a). (2) The President is authorized at any time to modify or terminate by proclamation any provision of law enacted by the amendments made by subsection (c). (3) The rates of duty in column numbered 1 of the Tariff Schedules of the United States that are enacted by the amendments made by subsection (c) shall be treated— (A) as not having the status of statutory provisions enacted by the Congress; but (B) as having been proclaimed by the President as being required to carry out a foreign trade agreement to which the United States is a party. (c) AMENDMENTS TO TARIFF SCHEDULES.— (1) Whenever in this subsection an amendment is expressed in terms of an amendment to a schedule, headnote, item, the Appendix, or other provision, the reference shall be considered to be made to a schedule, headnote, item, the Appendix, or other provision of the Tariff Schedules of the United States. (2) Subpart C of part 3 of schedule 1 is amended by striking out item 112.40 and inserting in lieu thereof the following items with a superior heading having the same degree of indentation as the article description in item 112.42: 112.40 112.41 Anchovies: If entered in any calendar year before 3,000 metric tons of anchovies have been entered under this item in such calendar year.. 3% ad val. 6% ad val. Other Free (A.E.I) Free (A,E,I) 30% ad val 30% ad val (3XA) Item 117.65 is amended bv striking out "9% ad val." and inserting in lieu thereof "Free'. (B) Item 117.67 is amended by striking out "12% ad val." and inserting in lieu thereof "Free". (4) Subpart B of part 9 of Schedule 1 is amended by striking out item 147.29 and inserting in lieu thereof the following items with a superior heading having the same degree of indentation as the article description in item 147.30: 147.28 147.29 Mandarin, packed in airtight containers: Satsuma, if entered in any calendar year before 40,000 metric tons of Satsuma oranges have been entered under this item in such calendar year.. Free Other 0.2$ per lb. Free (A,E,I) Free (A,E,I) U per lb. U per lb. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1145 (5) Subpart B of part 9 of Schedule 1 is amended— (A) by striking out item 148.44 and inserting in lieu thereof the following items with a superior heading having the same degree of indentation as the article description in item 148.42: 148.43 148.44 148.45 Other In containers holding not each more 20i per gal. Free(E) 20i per gal. lOi per gal. 20t per gal. Free(E) Free(E) 20i per gal. 20f per gal In containers each holding more than 0.3 gallon: If entered in any calendar year before 4,400 metric tons of olives have been entered under this item in such calenOther (B) by striking out item 148.48 and inserting in lieu thereof the following items with a superior heading having the same degree of indentation as the article description in item 148.46: 148.47 148.48 Other: If entered in any calendar year before 730 metric tons of olives have been entered under this item in Other 15c per gal. 30c per gal. Free(E) Free (E) 30c per gal 30c per gal (C) by striking out "or stuffed" in item 148.50; (D) by redesignating items 148.52, 148.54, and 148.56 as items 148.55,148.56, and 148.57, respectively; (E) by inserting after item 148.50 the following new items with a superior heading having the same degree of indentation as the article description in item 148.50: 148.51 148.52 148.53 Stuffed: In containers each holding not more than 0.3 gallon: Place Packed: If entered in any calendar year before 2,700 metric tons of olives have been entered under this item in such calendar year 15c per gal. Other 30C per gal. Other 30c per gal. Free (E) Free(E) Free (E) 30c per gal 30c per gal 30C per gal 102 STAT. 1146 PUBLIC LAW 100-418—AUG. 23, 1988 148.54 In containers each holding more than 0.3 gallon 30^ per gal. Free (E) 30^ per gal. (F) by striking out "5<t per lb." in item 148.55, as redesignated by paragraph (4), and inserting in lieu thereof "2.5<t per lb."; and (G) by striking out item 148.57, as redesignated by paragraph (4), and inserting in lieu thereof the following new items with the superior heading having the same degree of indentation as the article description in item 148.40: 148.57 148.58 Otherwise preftared or preserved: If entered in any calendar year before 550 metric tons of olives have been entered under this item in such calendar year 2M per lb. Other 5i per lb. Free(E) Free(E) 5^ per lb. 5t per lb. (6) Items 161.06 and 161.08 are each amended by striking out "16% ad val." and inserting in lieu thereof " 8 % ad val.". (7) Item 161.71 is amended by striking out "2$ per lb." and inserting in lieu thereof "1.35<|; per lb.". (8) Item 167.15 is amended by striking out "3<^ per gal." and inserting in Ueu thereof "1.5<|; per gal.". (9XA) Item 176.29 is amended by striking out "3.8$ per lb. on contents and container" and inserting in lieu thereof "2.28$ per lb. on contents and container.". (B) Item 176.30 is amended by striking out "2.6<}; per lb." and inserting in lieu thereof "1.56<|; per lb.", (d) REPORT.—The Trade Representative shall include in the semiannual report submitted imder section 309(3) of the Trade Act of 1974 an assessment of whether the European Communities are in compliance with the agreement referred to in subsection (a). SEC. 1123. EXTENSION OF INTERNATIONAL COFFEE AGREEMENT ACT OF 1980. 19 u s e 1356k note. 22 u s e 5304 note. (a) EXTENSION.—Section 2 of the International Coffee Agreement Act of 1980 (19 U.S.C. 1356k) is amended by striking out "October 1, 1986" and inserting "October 1,1989". (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall take effect January 1,1987. SEC. 1124. NEGOTIATIONS ON CURRENCY EXCHANGE RATES. (a) FINDINGS.—The Congress finds that— (1) the benefit of trade concessions can be adversely affected by misalignments in currency, and (2) misalignments in currency caused by government policies intended to maintain an unfair trade advantage tend to nullify and impair trade concessions. (b) NEGOTIATIONS.—Whenever, in the course of negotiating a trade agreement under this subtitle, the President is advised by the Secretary of the Treasury that a foreign country that is a party to the negotiations satisfies the criteria for initiating bilateral currency n^otiations listed in section 3004(b) of this Act, the Secretary .'**a« PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1147 of the Treasury shall take action to initiate bilateral currency negotiations on an expedited basis with such foreign country. SEC. 1125. REPORTS ON NEGOTIATIONS TO ELIMINATE WINE TRADE President of U.S. BARRIERS. 19 USC 2804 Before the close of the 13-month period beginning on the date of '^^^^ the enactment of this Act, the President shall update each report that the President submitted to the Committee on Ways and Means and the Committee on Finance under section 905(b) of the Wine Equity and Export Expansion Act of 1984 (19 U.S.C. 2804) and submit the updated report to both of such committees. Each updated report shall contain, with respect to the major wine trading country Concerned— (1) a description of each tariff or nontariff barrier to (or other distortion of) trade in United States wine of that country with respect to which the United States Trade Representative has carried out consultations since the report required under such section 905(b) was submitted; (2) the status of the consultations described under paragraph (l);and (3) information, explanations, and recommendations of the kind referred to in paragraph (1) (C), (D), and (E) of such section 9050b) that are based on developments (including the taking of relevant actions, if any, of a kind not contemplated at the time of the enactment of such 1984 Act) since the submission of the report required under such se'ction. Subtitle B—Implementation of the Harmonized Tariff Schedule . SEC. 1201. PURPOSES. 19 USC 3001. The purposes of this subtitle are— (1) to approve the International Convention on the Harmonized Commodity Description and Coding System; (2) to implement in United States law the nomenclature established internationally by the Convention; and (3) to provide that the Convention shall be treated as a trade agreement obligation of the United States. SEC. 1202. DEFINITIONS. As used in this subtitle: (1) The term "Commission" means the United States International Trade Commission. (2) The term "Convention" means the International Convention on the Harmonized Commodity Description and Coding System, done at Brussels on June 14, 1983, and the Protocol thereto, done at Brussels on June 24, 1986, submitted to the Congress on June 15,1987. (3) The term "entered" means entered, or withdrawn from warehouse for consumption, in the customs territory of the United States. (4) The term "Federal agency" means any establishment in the executive branch of the United States Government. 19 USC 3002. 102 STAT. 1148 PUBLIC LAW 100-418—AUG. 23, 1988 (5) The term "old Schedules" means title I of the Tariff Act of 1930 (19 U.S.C. 1202) as in effect on the day before the effective date of the amendment to such title under section 1204(a). (6) The term "technical rectifications" means rectifications of an editorial character or minor technical or clerical changes which do not affect the substance or meaning of the text, such as— (A) errors in spelling, numbering, or punctuation; (B) errors in indentation; (C) errors (including inadvertent omissions) in crossreferences to headings or subheadings or notes; and (D) other clerical or typographical errors. 19 u s e 3003. SEC. 1203. CONGRESSIONAL APPROVAL OF UNITED STATES ACCESSION TO THE CONVENTION. (a) CONGRESSIONAL APPROVAL.—The Congress approves the acces- sion by the United States of America to the ClJonvention. (b) ACCEPTANCE OP THE FINAL LEGAL TEXT OF THE (IJONVENTION BY THE PRESIDENT.—The President may accept for the United States the final legal instruments embodying the (IJonvention. The President shall submit a copy of each final instrument to the Congress on the date it becomes available. (c) UNSPECIFIED PRIVATE REMEDIES NOT CREATED.—Neither the entry into force with respect to the United States of the (Convention nor the enactment of this subtitle may be construed as creating any private right of action or remedy for which provision is not explicitly made under this subtitle or under other laws of the United States. (d) TERMINATION.—The provisions of section 125(a) of the Trade Act of 1974 (19 U.S.C. 2135(a)) do not apply to the Convention. 19 u s e 3004. SEC. 1204. ENACTMENT OF THE HARMONIZED TARIFF SCHEDULE. 19 use prec. 1202 note. (a) IN GENERAL.—The Tariff Act of 1930 is amended by striking out title I and inserting a new title I entitled "Title I—Harmonized Tariff Schedule of the United States" (hereinafter in this subtitle referred to as the "Harmonized Tariff Schedule") which— (1) consists of— (A) the (jeneral Notes; (B) the (jeneral Rules of Interpretation; (C) the Additional U.S. Rules of Interpretation; (D) sections I to XXII, inclusive (encompassing chapters 1 to 99, and including all section and chapter notes, article provisions, and tariff and other treatment accorded thereto); and OE) the Chemical Appendix to the Harmonized Tariff Schedule; all conforming to the nomenclature of the C!onvention and as set forth in Publication No. 2030 of the CJommission entitled "Harmonized Tariff Schedule of the United States Annotated for Statistical Reporting Purposes" and Supplement No. 1 thereto; but (2) does not include the statistical annotations, notes, annexes, suffixes, check digits, units of quantity, and other matters formulated under section 484(e) of the TariJEf Act of 1930 (19 U.S.C. 1484(e)), nor the table of contents, footnotes, index, and other matters inserted for ease of reference, that are included in such Publication No. 2030 or Supplement No. 1. thereto. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1149 (b) MODIFICATIONS TO THE HARMONIZED TARIFF SCHEDULE.—At the earliest practicable date after the date of the enactment of the Onmibus Trade and Competitiveness Act of 1988, the President shall— (1) proclaim such modifications to the Harmonized Tariff Schedule as are consistent with the standards applied in converting the old Schedules into the format of the Convention, as reflected in such Publication No. 2030 and Supplement No. 1. thereto, and as are necessary or appropriate to implement— (A) the future outstanding staged rate reductions authorized by the Congress in— (i) the Trade Act of 1974 (19 U.S.C. 2101 et seq.) and the Trade Agreements Act of 1979 (19 U.S.C. 2501 et seq.) to reflect the tariff reductions that resulted from the Tokyo Round of multilateral trade negotiations, and (ii) the United States-Israel Free Trade Area Implementation Act of 1985 (19 U.S.C. 1202 note) to reflect the tariff reduction resulting from the United StatesIsrael Free Trade Area Agreement, (B) the applicable provisions of— (i) statutes enacted, (ii) executive actions taken, and (iii) final judicial decisions rendered, after January 1, 1988, and before the effective date of the Harmonized Tariff Schedule, and (C) such technical rectifications as the President considers necessary; and (2) take such action as the President considers necessary to bring trade agreements to which the United States is a party into conformity with the Harmonized Tariff Schedule. (c) STATUS OF THE HARMONIZED TARIFF SCHEDULE.— (1) The following shall be considered to be statutory provisions of law for all purposes: (A) The provisions of the Harmonized Tariff Schedule as enacted by this subtitle. (B) Each statutory amendment to the Harmonized Tariff Schedule. (C) Each modification or change made to the Harmonized Tariff Schedule by the President under authority of law (including section 604 of the Trade Act of 1974). (2) Neither the enactment of this subtitle nor the subsequent enactment of any amendment to the Harmonized Tariff Schedule, unless such subsequent enactment otherwise provides, may be construed as limiting the authority of the President— (A) to effect the import treatment necessary or appropriate to carry out, modify, withdraw, suspend, or terminate, in whole or in part, trade agreements; or (B) to take such other actions through the modification, continuance, or imposition of any rate of duty or other import restriction as may be necessary or appropriate under the authority of the President. (3) If a rate of duty established in column 1 by the President by proclamation or Executive order is higher than the existing rate of duty in column 2, the President may by proclamation or Executive order increase such existing rate to the higher rate. President of U.S. 102 STAT. 1150 PUBLIC LAW 100-418—AUG. 23, 1988 ' ' (4) If a rate of duty is suspended or terminated by the President by proclamation or Executive order and the proclamation or Executive order does not specify the rate that is to apply in lieu of the suspended or terminated rate, the last rate of duty that applied prior to the suspended or terminated rate shall be the efffective rate of duty. ' ^ (d) INTERIM INFORMATIONAL U S E OF HARMONIZED TARIFF SCHEDULE CLASSIFICATIONS.—Each— (1) proclamation issued by the President; (2) public notice issued by the Commission or other Federal agency; and (3) finding, determination, order, recommendation, or other decision made by the Commission or other Federal agency; during the period between the date of the enactment of the Omnibus Trade and Competitiveness Act of 1988 and the effective date of the Harmonized Tariff Schedule shall, if the proclamation, notice, or decision contains a reference to the tariff classification of any article, include, for informational purposes, a reference to the classification of that article under the Harmonized Tariff Schedule. SEC. 1205. COMMISSION REVIEW OF, AND RECOMMENDATIONS REGARDING, THE HARMONIZED TARIFF SCHEDULE. (a) I N GENERAL.—^The Commission shall keep the Harmonized Tariff Schedule under continuous review and periodically, at such time as amendments to the Convention are recommended by the Customs Cooperation Council for adoption, and as other circumstances warrant, shall recommend to the President such modifications in the Harmonized Tariff Schedule as the Commission considers necessary or appropriate— (1) to conform the Harmonized Tariff Schedule with amendments made to the Convention; (2) to promote the uniform application of the Convention and particularly the Annex thereto; (3) to ensure that the Harmonized Tariff Schedule is kept upto-date in light of changes in technol(%y or in patterns of international trade; (4) to alleviate unnecessary administrative burdens; and (5) to make technical rectifications. " 19 use 3005. (b) AGENCY AND PUBLIC VIEWS REGARDING RECOMMENDATIONS.— Reports. In formulating recommendations under subsection (a), the Commission shall solicit, and give consideration to, the views of interested Federal agencies and the public. For purposes of obtaining public views, the Commission— (1) shall give notice of the proposed recommendations and afford reasonable opportunity for interested parties to present their views in writing; and (2) may provide for a public hearing. (c) SuBAOssiON OF RECOMMENDATIONS.—^The Commission shall submit recommendations under this section to the President in the form of a report that shall include a summary of the information on which the recommendations were based, together with a statement of the probable economic effect of each recommended change on any industry in the United States. The report also shall include a copy of all written views submitted by interested Federal agencies and a copy or summary, prepared by the Commission, of the views of all other interested parties. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1151 (d) REQUIREMENTS REGARDING RECOMMENDATIONS.—The Commission may not recommend any modification to the Harmonized Tariff Schedule unless the modification meets the following requirements: (1) The modification must— (A) be consistent with the Convention or any amendment thereto recommended for adoption; (B) be consistent with sound nomenclature principles; and (C) ensure substantial rate neutrality. (2) Any change to a rate of duty must be consequent to, or necessitated by, nomenclature modifications that are recommended under this section. (3) The modification must not alter existing conditions of competition for the affected United States industry, labor, or trade. SEC. 1206. PRESIDENTIAL ACTION ON COMMISSION RECOMMENDATIONS. 19 USC 3006. (a) I N GENERAL.—The President may proclaim modifications, based on the recommendations by the Commission under section 1205, to the Harmonized Tariff Schedule if the President determines that the modifications— (1) are in conformity with United States obligations under the Convention; and (2) do not run counter to the national economic interest of the United States. (h) LAY-OVF,R PERIOD.— (1) The President may proclaim a modification under subsec- President of U.S. tion (a) only after the expiration of the 60-day period beginning Reports. on the date on which the President submits a report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate that sets forth the proposed modification and the reasons therefor. (2) The 60-day period referred to in paragraph (1) shall be computed by excluding— (A) the days on which either House is not in session because of an adjournment of more than 3 days to a day certain or an adjournment of the Congress sine die; and (B) any Saturday and Sunday, not excluded under subparagraph (A), when either House is not in session. (c) EFFECTIVE DATE OF MODIFICATIONS.—Modifications proclaimed by the President under subsection (a) may not take effect before the 15th day after the date on which the text of the proclamation is published in the Federal Register. SEC. 1207. PUBLICATION OF THE HARMONIZED TARIFF SCHEDULE. (a) I N GENERAL.—The Commission shall compile and publish, at appropriate intervals, and keep up to date the Harmonized Tariff Schedule and related information in the form of printed copy; and, if, in its judgment, such format would serve the public interest and convenience— (1) in the form of microfilm images; or (2) in the form of electroiiic media. (h) CONTENT.—Publications under subsection (a), in whatever format, shall contain— (1) the then current Harmonized Tariff Schedule; (2) statistical annotations and related statistical information formulated under section 484(e) of the Tariff Act of 1930 (19 U.S.C. 1484(e)); and 19 USC 3007. 102 STAT. 1152 PUBLIC LAW 100-418—AUG. 23, 1988 (3) such other matters as the Commission considers to be necessary or appropriate to carry out the purposes enumerated in the Preamble to the Convention. Public SEC. 1208. IMPORT AND EXPORT STATISTICS. 19^1JS^3008 '^^ Secretary of Commerce shall compile, and make publicly available, the import and export trade statistics of the United States. Such statistics shall be conformed to the nomenclature of the Convention. 19 u s e 3009. SEC. 1209. COORDINATION OF TRADE POLICY AND THE CONVENTION. The United States Trade Representative is responsible for coordination of United States trade policy in relation to the Convention. Before formulating any United States position with respect to the Convention, including any proposed amendments thereto, the United States Trade Representative shall seek, and consider, information and advice from interested parties in the private sector (including a functional advisory committee) and from interested Federal agencies. 19 u s e 3010. SEC. 1210. UNITED STATES PARTICIPATION ON THE CUSTOMS COOPERATION COUNCIL REGARDING THE CONVENTION. (a) PRINCIPAL UNITED STATES AGENCIES.— (1) Subject to the policy direction of the Office of the United States Trade Representative under section 1209, the Department of the Treasury, the Department of Commerce, and the Commission shall, with respect to the activities of the Customs Cooperation Council relating to the Convention— (A) be primarily responsible for formulating United States Government positions on technical and procedural issues; and (B) represent the United States Government. (2) The Department of Agriculture and other interested Federal agencies shall provide to the Department of the Treasury, the Department of Commerce, and the Commission technical advice and assistance relating to the functions referred to in paragraph (1). (b) DEVELOPMENT OF TECHNICAL PROPOSALS.— (1) In connection with responsibilities arising from the implementation of the Convention and under section 484(e) of the * Tariff Act of 1930 (19 U.S.C. 1484(e)) regarding United States programs for the development of adequate and comparable statistical information on merchandise trade, the Secretary of the Treasury, the Secretary of Commerce, and the Commission shall prepare technical proposals that are appropriate or required to assure that the United States contribution to the development of the Convention recognizes the needs of the United States business community for a Convention which reflects sound principles of commodity identification, modern producing methods, and current trading patterns and practices. (2) In carrying out this subsection, the Secretary of the Treasury, the Secretary of Commerce, and the Commission shall— (A) solicit and consider the views of interested parties in the private sector (including a functional advisory committee) and of interested Federal agencies; (B) establish procedures for reviewing, and developing appropriate responses to, inquiries and complaints from PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1153 interested parties concerning articles produced in and exported from the United States; and (C) where appropriate, establish procedures for— (i) ensuring that the dispute settlement provisions and other relevant procedures available under the Convention are utilized to promote United States export interests, and (ii) submitting classification questions to the Harmonized System Committee of the Customs Cooperation Council, (c) AVAILABILITY OF CUSTOMS COOPERATION COUNCIL PUBLICA- TIONS.—As soon as practicable after the date of the enactment of the Omnibus Trade and Competitiveness Act of 1988, and periodically thereafter as appropriate, the Commission shall see to the publication of— (1) summary records of the Harmonized System Committee of Records. the Customs Cooperation Council; and (2) subject to applicable copyright laws, the Explanatory Notes, Classification Opinions, and other instruments of the Customs Cooperation Council relating to the Convention. SEC. 1211. TRANSITION TO THE HARMONIZED TARIFF SCHEDULE. (a) EXISTING EXECUTIVE ACTIONS.— (1) The appropriate officers of the United States Government shall take whatever actions are nec^sary to conform, to the fullest extent practicable, with the tariff classification system of the ELarmonized Tariff Schedule all proclamations, r^ulations, rulings, notices, findings, determinations, orders, recommendations, and other written actions that— (A) are in effect on the day before the effective date of the Harmonized Tariff Schedule; and (B) contain references to the tariff classification of articles under the old Schedules. (2) Neither the repeal of the old Schedules, nor the failure of any officer of the United States Government to make the conforming changes required under paragraph (1), shall affect to any extent the validity or effect of the proclamation, r^ulation, ruling, notice, finding, determination, order, recommendation, or other action referred to in paragraph (1). (b) GENERALIZED SYSTEM OF PREFERENCES CONVERSION.— (1) The review of the proposed conversion of the Generalized S^tem of Preferences program to the Convention tariff nomenclature, initiated by the Office of the United States Trade Representative by notice published in the Federal Roister on December 8,1986 (at page 44,163 of volume 51 thereof), shall be treated as satisfying the requirements of sections 503(a) and 504(cX3) of the Trade Act of 1974 (19 U.S.C. 2463(a), 2464(cX3)). (2) In applying section 504(cXl) of the Trade Act of 1974 (19 U.S.C. 2464(cXl)) for calendar year 1989, the reference in such section to July 1 shall be treated as a reference to September 1. (c) IMPORT RESTRICTIONS UNDER THE AGRICULTURAL ADJUSTMENT ACT.— (1) Whenever the President determines that the conversion of an import restriction proclaimed under section 22 of the Agricultural AcUustment Act (7 U.S.C. 624) from part 3 of the Appendix to the old Schedules to subchapter IV of chapter 99 of the Harmonized Tariff Schedule results in— 19 USC 3011. 102 STAT. 1154 PUBLIC LAW 100-418—AUG. 23, 1988 (A) an article that was previously subject to the restriction being excluded from the restriction; or (B) an article not previously subject to the restriction being included within the restriction; the President may proclaim changes in subchapter IV of chapter 99 of the Harmonized Tariff Schedule to conform that subchapter to the fullest extent possible to part 3 of the Appendix to the old Schedules. (2) Whenever the President determines that the conversion from headnote 2 of subpart A of part 10 of schedule 1 of the old Schedules to Additional U.S. Note 2, chapter 17, of the Harmonized Tariff Schedule results in— (A) an article that was previously covered by such headnote being excluded from coverage; or (B) an article not previously covered by such headnote being included in coverage; the President may proclaim changes in Additional U.S. Note 2, chapter 17 of the Harmonized Tariff Schedule to conform that note to the fullest extent possible to headnote 2 of subpart A of part 10 of schedule 1 of the old Schedules. (3) No change to the Harmonized Tariff Schedule may be proclaimed under paragraph (1) or (2) after June 30, 1990. Ck)urts, U.S. Reports. (d) CERTAIN PROTESTS AND PETITIONS UNDER THE CUSTOMS LAW.— (IXA) This subtitle may not be considered to divest the courts of jurisdiction over— (i) any protest filed under section 514 of the Tariff Act of 1930(19U.S.C. 1514);or (ii) any petition by an American manufacturer, producer, or wholesaler under section 516 of such Act (19 U.S.C. 1516); covering articles entered before the effective date of the Harmonized Tariff Schedule. (B) Nothing in this subtitle shall affect the jurisdiction of the courts with respect to articles entered after the effective date of the Harmonized Tariff Schedule. (2)(A) If any protest or petition referred to in paragraph (IXA) is sustained in whole or in part by a final judicial decision, the entries subject to that protest or petition and made before the effective date of the Harmonized Tariff Schedule shall be liquidated or reliquidated, as appropriate, in accordance with such final judicial decision under the old Schedules. (B) At the earliest practicable date after the effective date of the Harmonized Tariff Schedule, the Commission shall initiate an investigation under section 332 of the Tariff Act of 1930 (19 U.S.C. 1332) of those final judicial decisions referred to in subparagraph (A) that— (i) are published during the 2-year period beginning on February 1,1988; and (ii) would have affected tariff treatment if they had been published during the period of the conversion of the old Schedules into the format of the Convention. No later than September 1, 1990, the Commission shall report the results of the investigation to the President, the Committee on Ways and Means, and the Committee on Finance, and shall recommend those changes to the Harmonized Tariff Schedule that the Commission would have recommended if the final decisions concerned had been made before the conversion into the format of the Convention occurred. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1155 (3) The President shall review all changes recommended by President of U.S. the Commission under paragraph (2XB) and shall, as soon as practicable, proclaim such of those changes, if any, which he decides are necessary or appropriate to conform such Schedule to the final judicial decisions. Any such change shall be effective with respect to— (A) entries made on or after the date of such proclamation; and (B) entries made on or after the effective date of the Harmonized Tariff Schedule if, notwithstanding section 514 of the Tariff Act of 1930 (19 U.S.C. 1514), application for liquidation or reliquidation thereof is made by the importer to the customs officer concerned within 180 days after the effective date of such proclamation. (4) ff any protest or petition referred to in paragraph (IXA) is not sustained in whole or in part by a final judicial decision, the entries subject to that petition or protest and made before the effective date of the Harmonized Tariff Schedule shall be liquidated or reliquidated, as appropriate, in accordance with the final judicial decision under the old Schedules. SEC. 1212. REFERENCE TO THE HARMONIZED TARIFF SCHEDULE. 19 USC 3012. Any reference in any law to the "Tariff Schedules of the United States", "the Tariff Schedules", "such Schedules", and any other general reference that clearly refers to the old Schedules shall be treated as a reference to the Harmonized Tariff Schedule. SEC. 1213. TECHNICAL AMENDMENTS. (a) TRADE ACT OF 1974.—Section 604 of the Trade Act of 1974 (19 U.S.C. 2483) is amended by striking out "including modification," and inserting "including removal, modification,". (b) TARIFF CLASSIFICATION ACT OF 1962.—Section 201 of the Tariff aassification Act of 1962 (76 Stat. 72,74) is repealed. 19 USC prec. (c) TARIFF ACT OF 1930.—Section 315(d) of the Tariff Act of 1930 1202 note. (19 U.S.C. 1315(d)) is amended by adding at the end thereof the following: "This subsection shall not apply with respect to increases in rates of duty resulting from the enactment of the Harmonized Tariff Schedule of the United States to replace the Tariff Schedules of the United States.". SEC. 1214. CONFORMING AMENDMENTS. (a) CODIFIED TITLES.— (1) Section 374(aX3) of title 10 of the United States Code is amended by striking out "general headnote 2 of the Tariff Schedules of the United States" and inserting "general note 2 of the Harmonized Tariff Schedule of the United States". (2) Section 301 of title 13 of the United States Code is amended— (A) by striking out "Tariff Schedules of the United States Annotated and general statistical headnote 1 thereof," in subsection (b) and inserting "Harmonized Tariff Schedule of the United States Annotated for Statistical Reporting Purposes and general statistical note 1 thereof,"; (B) by striking out "item in the Tariff Schedules of the United States Annotated" in subsection (e) and inserting "heading or subheading in the Harmonized Tariff Schedule 102 STAT. 1156 PUBLIC LAW 100-418—AUG. 23, 1988 of the United States Annotated for Statistical Reporting Purposes"; and (C) by amending subsection (£)— (i) by striking out "item of the Tariff Schedules of the United States Annotated" and inserting "heading or subheading in the Harmonized Tariff Schedule of the United States Annotated for Statistical Reporting Purposes", and (ii) by striking out "under that item" each place it appears and inserting "under that heading or subheading". (3) Section 1295(aX7) of title 28 of the United States Code is amended by striking out "headnote 6 to schedule 8, part 4, of the Tariff Schedules of the United States" and inserting "U.S. note 6 to subchapter X of chapter 98 of the Harmonized Tariff Schedule of the United States". (b) TOBACCO ADJUSTMENT ACT OF 1983.—Section 213(aX2) of the Tobacco Adjustment Act of 1983 (7 U.S.C. 511r(a)(2)) is amended by striking out "Schedule 1, Part 13, Tariff Schedules of the United States" and inserting "chapter 24 of the Harmonized Tariff Schedule of the United States". (c) FEDERAL HAZARDOUS SUBSTANCES ACT.—Section 15 of the Federal Hazardous Substances Act (15 U.S.C. 1274) is amended— (1) by striking out "general headnote 2 to the Tariff Schedules of the United States" in subsection (b) and inserting "general note 2 of the Harmonized Tariff Schedule of the United States"; and (2) by striking out "general headnote 2 to the Tariff Schedules of the United States" in subsection (cX2) and inserting "general note 2 of the Harmonized Tariff Schedule of the United States". (d) CONSUMER PRODUCT SAFETY ACT.—Section 15(d) and section 17(a) of the Consumer Product Safety Act (15 U.S.C. 2064(d) and 2066(a)) are each amended by striking out "general headnote 2 to the Tariff Schedules of the United States" and inserting "general note 2 of the Harmonized Tariff Schedule of the United States". (e) TOXIC SUBSTANCES CONTROL ACT.— (1) Section 3(7) of the Toxic Substances Control Act (15 U.S.C. 2602(7)) is amended by striking out "general headnote 2 of the Tariff Schedules of the United States" and inserting "general note 2 of the Harmonized Tariff Schedule of the United States". (2) Section 13(aXl) of such Act (15 U.S.C. 2612(aXl)) is amended by striking out "general headnote 2 to the Tariff Schedules of the United States" and inserting "general note 2 of the Harmonized Tariff Schedule of the United States". if) EMERGENCY WETLANDS RESOURCES ACT OF 1986.—Section 203 of the Emergency Wetlands Resources Act of 1986 (16 U.S.C. 3912) is amended by striking out "subpart A of part 5 of schedule 7 of the Tariff Schedules of the United States" and inserting "chapter 93 of the Harmonized Tariff Schedule of the United States". (g) COBRA OF 1985.—Section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c) is amended— (1) by striking out "schedule 8 of the Tariff Schedules of the United States" in subsection (aX9XA) and inserting "chapter 98 of the Harmonized Tariff Schedule of the United States"; (2) by striking out "General Headnote 3(eXvi) or (vii)" in subsection (aX9)(C) and inserting "general note 3(cXv)"; and PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1157 (3) by striking out "headnote 2 of the General Headnotes and Rules of Interpretation of the Tariff Schedules of the United States" in subsection (cX3) and inserting "general note 2 of the Harmonized Tariff Schedule of the United States". (h) TARIFF ACT OF 1930.—The Tariff Act of 1930 is amended as follows: (1) Section 312(f) (19 U.S.C. 1312(f)) is amended— (A) by amending paragraph (1)— (i) by striking out "schedule 6, part 1, of the Tariff Schedules of the United States," and inserting "chapter 26 of the Harmonized Tariff Schedule of the United States,"; (ii) by striking out "schedule 6, part 2, of such schedules," and inserting "chapters 71 through 83 of the Harmonized Tariff Schedule of the United States,"; and (iii) by striking out the quotation marks surrounding "metal waste and scrap" and "unwrought metal"; (B) by amending paragraph (2XA)— (i) by striking out "part 2 of schedule 6" and inserting "chapters 71 through 83 of the Harmonized Tariff Schedule of the United States"; (ii) by striking out "part 1 of schedule 6" and inserting "chapter 26 of the Harmonized Tariff Schedule of the United States"; and (iii) by striking out the quotation marks surrounding "unwrought metal"; and (C) by amending paragraph (3) by striking out "as defined in part 1 of schedule 6" and inserting "of chapter 26 of the Harmonized Tariff Schedule of the United States". (2) Section 321(a)(2XB) (19 U.S.C. 1321(aX2XB)) is amended by striking out "item 812.25 or 813.31" and inserting "subheading 9804.00.30 or 9804.00.70". (3) Section 337(j) (19 U.S.C. 1337g)) is amended by striking out "general headnote 2 of the Tariff Schedules of the United States" and inserting "general note 2 of the Harmonized Tariff Schedule of the United States". (4) Section 466(f) (19 U.S.C. 1466(f)) is amended by striking out "headnote 3 to schedule 6, part 6, subpart C of the Tariff Schedules of the United States" and inserting "general note 3(cXiv) of the Harmonized Tariff Schedule of the United States". (5) Section 498(aXl) (19 U.S.C. 1498(aXl)) is amended— (A) by striking out subparagraphs (A), (B), and (C) and inserting the following: "(A) chapters 50 through 63; "(B) chapters 39 through 43, 61 through 65, 67 and 95; and "(C) subchapters III and IV of chapter 99;"; and (B) bv striking out "of the Tariff Schedules of the United States,' and inserting "of the Harmonized Tariff Schedule of the United States, . (i) AUTOMOTIVE PRODUCTS TRADE ACT OF 1965.—Section 201 (a) and (b) of the Automotive Products Trade Act of 1965 (19 U.S.C. 2011 (a) and (b)) are each amended by striking out "Tariff Schedules of the United States" and inserting "Harmonized Tariff Schedule of the United States". (j) TRADE ACT OF 1974.—The Trade Act of 1974 is amended as follows: 102 STAT. 1158 PUBLIC LAW 100-418—AUG. 23, 1988 (1) Section 128(b) (19 U.S.C. 2138(b)) is amended to read as follows: President of U.S. "(b) The President shall exercise his authority under subsection (a) of this section only with respect to the following subheadings listed in the Harmonized Tariff Schedule of the United States— "(1) transistors (provided for in subheadings 8541,21.00, 8541.29.00, and 8541.40.70); "(2) diodes and rectifiers (provided for in subheadings 8541.10.00,8541.30.00, and 8541.40.60); "(3) monolithic integrated circuits (provided for in subheadings 8542.11.00 and 8542.19.00); "(4) other integrated circuits (provided for in subheading 8542.20.00); "(5) other components (provided for in subheading 8541.50.00); "(6) parts of semiconductors (provided for in subheadings 8541.90.00 and 8542.90.00); and "(7) imits of automatic data processing machines (provided for in subheadings 8471.92.20, 8471.92.30, 8471.92.70, 8471.92.80, 8471.93.10, 8471.93.15, 8471.93.30, 8471.93.50, 8471.99.15, and 8471.99.60) and parts (provided for in subheading 8473.30.40), all the foregoing not incorporating a cathode ray tube.". (2) Section 203(f) (19 U.S.C. 2253(f)) is amended— (A) by striking out "item 806.30 or 807.00 of the Tariff Schedules of the United States" in paragraph (1) and inserting "subheadings 9802.00.60 or 9802.00.80 of the Harmonized Tariff Schedule of the United States"; and (B) by striking out "item 806.30 or item 807.00" in paragraph (3) and inserting "subheading 9802.00.60 or subheading 9802.00.80 of the Harmonized Tariff Schedule of the United States". (3) Section 404(c) (19 US.C. 2434(c)) is amended by striking out "Tariff Schedules for the United States" and inserting "Harmonized Tariff Schedule of the United States". (4) Section 407(cX3) and section 604 (19 U.S.C. 2437(cX3) and 2483) are each amended by striking out "Tariff Schedules of the United States" and inserting "Harmonized Tariff Schedule of the United States". (5) Section 601(7) (19 U.S.C. 2481(7)) is amended by striking out "schedules 1 tlut)ugh 7 of the Tariff Schedules of the United States" and inserting "chapters 1 through 97 of the Harmonized Tariff Schedule of the United States". (k) TRADE AGREEMENTS ACT OF 1979.—Section 1102(bX3) of the Trade Agreements Act of 1979 (19 U.S.C. 258103X3)) is amended by striking out "headnotes of the Tariff Schedules of the United States and inserting "notes of the Harmonized Tariff Schedule of the United States" a) ACT OF MARCH 2, 1897.—Section 1 of the Act of March 2, 1897 (29 Stat. 604) (21 U.S.C. 41) is amended by strikmg out "Tariff Schedules of the United States" and inserting "Harmonized Tariff Schedule of the United States". (m) CONTROLLED SUBSTANCES IMPORT AND EXPORT ACT.—Section 1001(aX2) of the Controlled Substances Import and Export Act (21 U.S.C. 951(aX2)) is amended by striking out "general headnote 2 to the Tariff Schedules of the United States" and inserting "general note 2 of the Harmonized Tariff Schedule of the United States". (n) COMPREHENSIVE ANTI-APARTHEID ACT OF 1986.—Section 309(b) of the Comprehensive Anti-Apartheid Act of 1986 (22 U.S.C. 50590))) PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1159 is amended by striking out "item 812.10 or 813.10 of the Tariff Schedules of the United States" and inserting "subheading 9804.00.20 or 9804.00.45 of the Harmonized Tariff Schedule of the United States". (o) STRATEGIC AND CRITICAL MATERIALS STOCK P I U N G ACT.—Sec- tion 13 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h-4) is amended by striking out "general headnote 3(d) of the Tariff Schedules of the United States" and inserting "general note 3(b) of the Harmonized Tariff Schedule of the United States". (p) INTERNAL REVENUE CODE OF 1986.— (1) Section 7652(e)(3) of the Internal Revenue Code of 1986 (26 U.S.C. 7652(eX3)) is amended by striking out "item 169.13 or 169.14 of the Tariff Schedules of the United States" and inserting "subheading 2208.40.00 of the Harmonized Tariff Schedule ofthe United States". (2) Section 9504(b)(lXB) of the Internal Revenue Code of 1986 (26 U.S.C. 9504(b)(1)(B)) is amended— (A) by striking out "subpart B of part 5 of schedule 7 of the Tariff Schedules of the United States" and inserting "heading 9507 of the Harmonized Tariff Schedule of the United States"; and (B) by striking out "subpart D of part 6 of schedule 6 of such Schedules and inserting "chapter 89 of the Harmonized Tariff Schedule of the United States". (q) CARIBBEAN BASIN ECONOMIC RECOVERY ACT.—The Caribbean Basin Economic Recovery Act is amended as follows: (1) Section 212(a)(1)(C) (19 U.S.C. 2702(aXlXC)) is amended by striking out " 'TSUS' means Tariff Schedules of the United States' and inserting " 'HTS' means Harmonized Tariff Schedule ofthe United States". (2) Section 213 (19 U.S.C. 2703) is amended as follows: (A) Subsection Ot)) is amended— (i) by striking out "part 10 of schedule 4 of the TSUS" in paragraph (4) and inserting "headings 2709 and 2710 of the Harmonized Tariff Schedule of the United •' States"; and (ii) by striking out "TSUS" in paragraph (5) and inserting "HTS". (B) Subsection (c) is amended— (i) bv striking out "items 155.20 and 155.30 of the TSUS' in paragraph (IXAXi) and inserting "subheadings 1701.11.00, 1701.12.00, 1701.91.20, 1701.99.00, 1702.90.30, 1806.10.40, and 2106.90.10 of the Harmonized 'Tariff Schedule of the United States"; and (ii) by striking out "subpart B of part 2 of schedule 1 of the TSUS" in paragraph (IXAXii) and inserting "chapters 2 and 16 of the Harmonized Tariff Schedule of the United States". (C) Subsection (d) is amended by striking out "items 155.20 and 155.30 ofthe TSUS" and inserting "subheadings 1701.11.00, 1701.12.00, 1701.91.20, 1701.99.00, 1702.90.30, 1806.10.40, and 2106.90.10 of the Harmonized Tariff Schedule of the United States". (D) Subsection (f)(5) is amended— (i) by amending subparagraph (A) to read as follows: "(A) live plants and fresh cut flowers provided for in chapter 6 oftheHTS;^'; 102 STAT. 1160 PUBLIC L A W 100-418—AUG. 23, 1988 (ii) by striking out "items 135.10 through 138.46 of the TSUS" in subparagraph (B) and inserting "headings 0701 through 0709 (except subheading 0709.52.00) and heading 0714 of the HTS"; (iii) by striking out subparagraph (C); (iv) by redesignating subparagraph (D) as subparagraph (C) and by striking out "items 146.10, 146.20, 146.30, 146.50 through 146.62, 146.90, 146.91, 147.03 through 147.33,147.50 through 149.21 and 149.50 of the TSUS" in such redesignated subparagraph and inserting "subheadings 0804.20 through 0810.90 (except citrons of subheading 0805.90.00, tamarinds and kiwi fruit of subheading 0810.90.20, and cashew apples, mameyes colorados, sapodillas, soursops and sweetsops of subheading 0810.90.40) of the HTS"; (v) by striking out subparagraph (E); and (vi) by redesignating subparagraph (F) as subparagraph (E) and by striking out "items 165.25 and 165.35 of the TSUS" in such redesignated subparagraph and inserting "subheadings 2009.11.00, 2009.19.40, 2009.20.40,2009.30.20, and 2009.30.60 of the HTS". (r) 98 Stat. 2990. 98 Stat. 2994. 98 Stat. 2994. 19 use 2112 note. ACT RELATING TO REFORESTATION TRUST FUND.—Section 3030)X1) of the Act of October 14, 1980 (16 U.S.C. 1606a(bXl)) is amended to read as follows: "(bXD Subject to the linutation in paragraph (2), the Secretary of the Treasury shall transfer to the Trust Fund an amount equal to the sum of the tariffs received in the Treasury after January 1,1989, under headings 4401 through 4412 and subheadings 4418.50.00, 4418.90.20, 4420.10.00, 4420.90.80, 4421.90.10 through 4421.90.20, and 4421.90.70 of chapter 44, subheadings 6808.00.00 and 6809.11.00 of chapter 68 and subheading 9614.10.00 of chapter 96 of the Harmonized Tariff Schedule of the United States.". (s) TRADE AND TARIFF ACT OF 1984.—The Trade and Tariff Act of 1984 (Public Law 98-573) is amended as follows: (1) Section 231(aXl) is amended by striking out "Tariff Schedules of the United States" and inserting "Harmonized Tariff Schedule of the United States". (2) Section 239 is amended by striking out "headnote 6 of part 4 of schedule 8 of the Tariff Schedules of the United States" and inserting "U.S. note 6 to subchapter X of chapter 98 of the Harmonized Tariff Schedule of the United States". (3) Section 240 is amended— (A) by striking out "headnote 6(a) of part 4 of schedule 8 of the Tariff Schedules of the United States" in subsection (aXlXA) and inserting "U.S. note 6(a) to subchapter X of chapter 98 of the Harmonized Tariff Schedule of the United States"; and (B) by striking out "headnote 1 of part 4 of schedule 8" in subsection (e) and inserting "U.S. note 1 to subchapter X of chapter 98 of the Harmonized Tsiriff Schedule of the United States" (4) Section 404(e) is amended— (A) by amending paragraphs (1) and (2) to read as follows: "(1) live plants and fresh cut flowers provided for in chapter 6 of the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202, hereinafter referred to as the 'HTS'); PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1161 "(2) vegetables, edible nuts or fruit provided for in chapters 7 and 8, heading 1105, subheadings 1106.10.00 and 1106.30, heading 1202, subheadings 1214.90.00 and 1704.90.60, headings 2001 through 2008 (excluding subheadings 2001.90.20 and 2004.90.10) and subheading 2103.20.40 of the HTS;"; (B) by striking out paragraphs (3), (4), and (5); and (C) by striking out paragraph (6) and inserting the following: "(3) concentrated citrus fruit juice provided for in subheadings 2009.11.00, 2009.19.40, 2009.20.40, 2009.30.20, and 2009.30.60 of the HTS.". (t) TRADE AGREEMENTS ACT OF 1979.—The Trade Agreements Act of 1979 (Public Law 96-39) is amended as follows: (1) Section 701(cXl) is amended to read as follows: 19 USC 1202 "(1) QUOTA CHEESE.—The term 'quota cheese' means the arti- ^°^cles provided for in the following subheadings of the Harmonized Tariff Schedule of the United States: "(A) 0406.10.00 (except whey cheese, curd, and cheese, cheese substitutes for cheese mixtures containing: Roquefort, Stilton produced in the United Kingdom, Bryndza, Gjetost, Goya in original loaves, Gammelost and Nokkelost, cheese made from sheep's and goat's milk and soft ripened cow s milk cheeses)* "(B) 0406.20.20 (except Stilton produced in the United Kingdom); "(C) 0406.20.30; "(D) 0406.20.35; "(E) 0406.20.40; "(F) 0406.20.50; "(G) 0406.20.60 (except cheeses containing or processed from: Stilton produced in the United Kingdom, Roquefort, Brjrndza, Gietost, Gammelost and Nokkelost, cheese made from sheep s and goat's milk and soft ripened cow's milk f ' j '•• cll.66S6sV "(H) 0406.30.10 (except Stilton produced in the United Kingdom); "(I) 0406.30.20; "(J) 0406.30.30; "(K) 0406.30.40; "(L) 0406.30.50; "(M) 0406.30.60 (except cheeses containing or processed from: Stilton produced in the United Kingdom, Roquefort, Bryndza, Gietost, Gammelost and Nokkelost, cheese made from sheep s and goat's milk and soft ripened cow's milk c n 66S6SV "(N) 0406.40.60 (except Stilton produced in the United Kingdom); "(O) 0406.40.80 (except Stilton produced in the United Kingdom); "(P) 0406.90.10; "(Q) 0406.90.15; "(R) 0406.90.30 (except Goya in original loaves); "(8)0406.90.35; "(T) 0406.90.40; "(U) 0406.90.45 (except Gammelost and Nokkelost); "(V) 0406.90.65; "(W) 0406.90.70; and 102 STAT. 1162 PUBLIC LAW 100-418—AUG. 23, 1988 "(X) 0406.90.80 (except cheeses containing or processed from: Stilton produced in the United Kingdom, Roquefort, Br3mdza, Gjetost, Gammelost and Nokkelost, cheese made from sheep s and goat's milk and soft ripened cow's milk 19 use 1202 "°*® 19 use 1202 ^°^- (2) Section 703 is amended— (A) by striking out "item 950.15 of the Tariff Schedules of the United States" and inserting "subheading 9904.10.63 of the Harmonized Tariff Schedule of the United States"; and (B) by striking out "item 950.16 of the Tariff Schedules of the United States" and inserting "subheading 9904.10.66 of the Harmonized Tariff Schedule of the United States". (3) Section 855 is amended— (A) by striking out "item set forth in subpart D of part 12 of sch^ule 1 of the Tariff Schedules of the United States" in subsection (a) and inserting "article provided for in subheading 2207.10.30 and heading 2208 of the Harmonized Tariff Schedule of the United States"; and (B) by striking out "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" in subsection (b) and inserting "article as set forth in rate of duty column numbered 1 of subheading 2207.10.30 and heading 2208 of the Harmonized Tariff Schedule of the United States", (u) MEAT IMPORT ACT OP 1979.—The Meat Import Act of 1979 (19 U.S.C. 1202 note) is amended— (1) by amending subsection (bX2)— (A) by striking out "Tariff Schedules of the United States" and inserting "Harmonized Tariff Schedule of the United States", (B) by striking out "item 106.10" in subparagraph (A) and inserting "subheadings 0201.10.00, 0201.20.60, 0201.30.60, 0202.10.00,0202.20.60 and 0202.30.60", (C) by striking out "cattle" in subparagraph (A) and inserting "bovine", (D) by striking out "items 106.22 and 106.25" m subparagraph (B) and inserting "subheadings 0204.50.00, 0204.21.00, 0204.22.40, 0204.23.40, 0204.41.00, 0204.42.40, and 0204.43.40'*, and (E) by amending subparagraph (C) to read as follows: "(C) subheadings 0201.20.40, 0201.30.40, 0202.20.40, and 0202.30.40 (relating to processed meat of beef or veal other than high quality beef cuts)."; (2) by striking out "items 100.40, 100.43, 100.45, 100.53, and 100.55 of such Schedules" in the sentence following subsection (cX2) and inserting "subheadings 0102.90.20 and 0102.90.40 of the Harmonized Tariff Schedule of the United States"; and (3) by striking out "item 107.61 of the Tariff Schedules of the United States" in subsection (fXD and inserting "subheadings 0201.20.20, 0201.30.20, 0202.20.20, and 0202.30.20 of the Harmonized Tariff Schedule of the United States". (v) NATIONAL WOOL ACT OF 1954.—Sections 704 and 705 of the National Wool Act of 1954 (7 U.S.C. 1783 and 1784) are each amended by striking out "all articles subject to duty under schedule 11 of the Tariff Act of 1930, as amended" and inserting "wool or fine animal hair, and articles thereof, as provided for in the Harmonized Tariff Schedule of the United States'. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1163 (w) AGRICULTURAL ACT OF 1949.—Section 103(f)(3) of the Agricultural Act of 1949 (7 U.S.C. 1444(fK3)) is amended by striking out "items 955.01 through 955.03 of the Appendix to the Tariff Schedules of the United States" and inserting "subheadings 9904.30.10 through 9904.30.30 of chapter 99 of the Harmonized Tariff Schedule ofthe United States". SEC. 1215. NEGOTIATING AUTHORITY FOR CERTAIN ADP EQUIPMENT. Section 128(b) of the Trade Act of 1974 (19 U.S.C. 2138(b)), as amended by section 1212(jXl) of this Act, is further amended— (1) by striking out "and" at the end of paragraph (6); (2) by striking out "tube." and inserting "tube; and" in paragraph (7); and (3) by adding at the end thereof the following new paragraph: "(8) Digital processing units for automatic data processing machines, unhoused, consisting of a printed circuit (single or multiple) with one or more electronic integrated circuits or other semiconductor devices mounted directly thereon, certified as units designed for use other than in an automatic data processing machine of subheading 8471.20 (provided for in subheading 8471.91).". SEC. 1216. COMMISSION REPORT ON OPERATION OF SUBTITLE. 19 USC 3005 The Commission, in consultation with other appropriate Federal ^° ' agencies, shall prepare, and submit to the Congress and to the President, a report regarding the operation of this subtitle during the 12-month period commencing on the effective date of the Harmonized Tariff Schedule. The report shall be submitted to the Congress and to the President before the close of the 6-month period beginning on the day after the last day of such 12-month period. SEC. 1217. EFFECTIVE DATES. 19 USC 3001 (a) ACCESSION TO CONVENTION AND PROVISIONS OTHER THAN THE "° ® IMPLEMENTATION OF THE HARMONIZED TARIFF SCHEDULE.—Except as provided in subsection (b), the provisions of this subtitle take effect on the date of the enactment of the Omnibus Trade and Competitiveness Act of 1988. Ot)) IMPLEMENTATION OF THE HARMONIZED TARIFF SCHEDULE.—The effective date of the Harmonized Tariff Schedule is January 1,1989. On such date— (1) the amendments made by sections 1204(a), 1213, 1214, and 1215 take effect and apply with respect to articles entered on or after such date; and (2) sections 1204(c), 1211, and 1212 take effect. 102 STAT. 1164 PUBLIC LAW 100-418—AUG. 23, 1988 Subtitle C—Response to Unfair International Trade Practices PART 1—ENFORCEMENT OF UNITED STATES RIGHTS UNDER TRADE AGREEMENTS AND RESPONSE TO CERTAIN FOREIGN TRADE PRACTICES SEC. 1301, REVISION OF CHAPTER 1 OF TITLE III OF THE TRADE ACT OF 1974. (a) IN GENERAL.—Chapter 1 of title III of the Trade Act of 1974 (19 U.S.C. 2411 et seq.) is amended to read as follows: "CHAPTER 1—ENFORCEMENT OF UNITED STATES RIGHTS UNDER TRADE AGREEMENTS AND RESPONSE TO CERTAIN FOREIGN TRADE PRACTICES 19 u s e 2411. "SEC. 301. ACTIONS BY UNITED STATES TRADE REPRESENTATIVE. "(a) MANDATORY ACTION.— "(1) If the United States Trade Representative determines under section 304(aXl) that— "(A) the rights of the United States under any trade agreement are being denied; or "(B) an act, policy, or practice of a foreign country— "(i) violates, or is inconsistent with, the provisions of, or otherwise denies benefits to the United States under, any trade agreement, or "(ii) is unjustifiable and burdens or restricts United States commerce; the Trade Representative shall take action authorized in subsection (c), subject to the specific direction, if any, of the President r ^ a r d i n g any such action, and shall taJce all other appropriate and feasible action within the power of the President that the President may direct the Trade Representative to take under this subsection, to enforce such rights or to obtain the elimination of such act, policy, or practice. "(2) The Trade Representative is not required to take action under paragraph (1) in any case in which— (A) the Contracting Parties to the General Agreement on Tariffs and Trade have determined, a panel of experts has reported to the Contracting Parties, or a ruling issued under the formal dispute settlement proceeding provided under any other trade agreement finds, that— "(i) the rights of the United States under a trade agreement are not being denied, or "(ii) the act, policy, or practice— "(I) is not a violation of, or inconsistent with, the rights of the United States, or "(II) does not deny, nullify, or impair benefits to the United States under any trade agreement; or "(B) the Trade Representative finds that— "(i) the foreign country is taking satisfactory measures to grant the rights of the United States under a trade agreement. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1165 "(ii) the foreign country has— "(I) agreed to eliminate or phase out the act, policy, or practice, or "(II) agreed to an imminent solution to the burden or restriction on United States commerce that is satisfactory to the Trade Representative, "(iii) it is impossible for the foreign country to achieve the residts described in clause (i) or (ii), as appropriate, but the foreign country agrees to provide to the United States compensatory trade benefits that are satisfactory to the Trade Representative, "(iv) in extraordinary cases, where the taking of action under this subsection would have an adverse impact on the United States economy substantially out of proportion to the benefits of such action, taking into account the impact of not taking such action on the credibility of the provisions of this chapter, or "(v) the taking of action imder this subsection would cause serious harm to the national security of the United States. "(3) Any action taken under paragraph (1) to eliminate an act, policy, or practice shall be devised so as to affect goods or services of the foreign country in an amount that is equivalent in value to the burden or restriction being imposed by that country on United States conunerce. "(b) DisousnONARY AcnoN.—If the Trade Representative determines under section 304(aXl) that— "(1) an act, policy, or practice of a foreign country is unreasonable or discriminatory and burdens or restricts United States commerce, and "(2) action by the United States is appropriate, the Trade Representative shall take all appropriate and feasible action authorized under subsection (c), subject to the specific direction, if any, of the President r^arding any such action, and all other appropriate and feasible action within the power of the President tiiat the President may direct the Trade Representative to take under this subsection, to obtain the elimination of that act, policy, or practice. "(c) SCOPE OF AUTHORITY.— "(1) For purposes of carrying out the provisions of subsection (a) or (b), the IVade Representative is authorized to— "(A) suspend, withdraw, or prevent the application of, benefits of trade agreement concessions to carry out a trade agreement with the foreign country referred to in such subsection; "(B) impose duties or other import restrictions on the goods of, and, notwithstanding any other provision of law, fees or restrictions on the services of, such foreign country for such time as the Trade Representative determines appropriate; or "(C) enter into binding agreements with such foreign country that commit such foreign country to— "(i) eliminate, or phase out, the act, policy, or practice that is the subject of the action to be taJcen under subsection (a) or (b). 102 STAT. 1166 Discrimination, prohibition. PUBLIC LAW 100-418—AUG. 23, 1988 "(ii) eliminate any burden or restriction on United States commerce resulting from such act, policy, or practice, or "(iii) provide the United States with compensatory trade benefits that— "(I) are satisfactory to the Trade Representative, and "(II) meet the requirements of paragraph (4). "(2XA) Notwithstanding any other provision of law governing any service sector access authorization, and in addition to the authority conferred in paragraph (1), the Trade Representative may, for purposes of carrying out the provisions of subsection (a) or(b)— "(i) restrict, in the manner and to the extent the Trade Representative determines appropriate, the terms and conditions of any such authorization, or "(ii) deny the issuance of any such authorization. "(B) Actions described in subparagraph (A) may only be taken under this section with respect to service sector access authorizations granted, or applications therefor pending, on or after the date on which— "(i) a petition is filed under section 302(a), or "(ii) a determination to initiate an investigation is made by the Trade Representative under section 302(b). "(C) Before the Trade Representative takes any action under this section involving the imposition of fees or other restrictions on the services of a foreign country, the Trade Representative shall, if the services involved are subject to regulation by any agency of the Federal Government or of any State, consult, as appropriate, with the head of the agency concerned. (3) The actions the Trade Representative is authorized to take under subsection (a) or (b) may be taken against any goods or economic sector— "(A) on a nondiscriminatory basis or solely against the foreign country described in such subsection, and "(B) without regard to whether or not such goods or economic sector were involved in the act, policy, or practice that is the subject of such action. "(4) Any trade agreement described in paragraph (IXCXiii) shall provide compensatory trade benefits that benefit the economic sector which includes the domestic industry that would benefit from the elimination of the act, policy, or practice that is the subject of the action to be taken under subsection (a) or (b), or benefit the economic sector as closely related as possible to such economic sector, unless— "(A) the provision of such trade benefits is not feasible, or "(B) trade benefits that benefit any other economic sector would be more satisfactory than such trade benefits. "(5) In taking actions under subsection (a) or 0)), the Trade Representative shall— "(A) give preference to the imposition of duties over the imposition of other import restrictions, and (B) if an import restriction other than a duty is imposed, consider substituting, on an incremental basis, an equivalent duty for such other import restriction. "(6) Any action taken by the Trade Representative under this section with respect to export targeting shall, to the extent PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1167 possible, reflect the full benefit level of the export targeting to the beneficiary over the period during which the action taken has an effect. "(d) DEFINITIONS AND SPECIAL RULES.—For purposes of this chapter— "(1) The term "commerce" includes, but is not limited to— "(A) services (including transfers of information) associated with international trade, whether or not such services are related to specific goods, and "(B) foreign direct investment by United States persons with implications for trade in goods or services. "(2) An act, policy, or practice of a foreign country that burdens or restricts United States commerce may include the provision, directly or indirectly, by that foreign country of subsidies for the construction of vessels used in the commercial transportation by water of goods between foreign countries and the United States. "(3XA) An act, policy, or practice is unreasonable if the act, policy, or practice, while not necessarily in violation of, or inconsistent with, the international l ^ a l rights of the United States, is otherwise unfair and inequitable. "(B) Acts, policies, and practices that are unreasonable include, but are not limited to, any act, policy, or practice, or any combination of acts, policies, or practices, which— "(i) denies fair and equitable— "(I) opportunities for the establishment of an enterprise, "(II) provision of adequate and effective protection of intellectual property rights, or "(HI) market opportunities, including the toleration by a foreign government of systematic anticompetitive activities by private firms or among private firms in the foreign country that have the effect of restricting, on a basis that is inconsistent with commercial considerations, access of United States goods to purchasing by such firms, "(ii) constitutes export targeting, or "(iii) constitutes a persistent pattern of conduct that— "(I) denies workers the right of association, "(n) denies workers the right to organize and bargain collectively, "(HI) permits any form of forced or compulsory labor, "(IV) fails to provide a minimum age for the employment of children, or "(V) fails to provide standards for minimum wages, hours of work, and occupational safety and health of workers. "(CXi) Acts, policies, and practices of a foreign country described in subparagraph (BXiii) shall not be treated as being unreasonable if the Trade Representative determines that— "(I) the foreign country has taken, or is taking, actions that demonstrate a significant and tangible overall advancement in providing throughout the foreign country (including any designated zone within the foreign country) the rights and other standards described in the subclauses of subparagraph (BXiii), or Maritime affairs. Copjrrights. Patents and trademarks. Children and youth. Wages. Safety. 102 STAT. 1168 Federal Register, publication. Copyrights. Patents and trademarks. 19 u s e 2412. PUBLIC LAW 100-418—AUG. 23, 1988 "(II) such acts, policies, and practices are not inconsistent with the level of economic development of the foreign country. "(ii) The Trade Representative shall publish in the Federal Register any determination made under clause (i), together with a description of the facts on which such determination is based. "(D) For purposes of determining whether any act, policy, or practice is unreasonable, reciprocal opportunities in the United States for foreign nationals and firms shall be taken into account, to the extent appropriate. "(E) The term 'export targeting' means any government plan or scheme consisting of a combination of coordinated actions (whether carried out severally or jointly) that are bestowed on a specific enterprise, industry, or group thereof, the effect of which is to assist the enterprise, industry, or group to become more competitive in the export of a class or kind of merchandise. "(4XA) An act, policy, or practice is unjustifiable if the act, policy, or practice is in violation of, or inconsistent with, the international legal rights of the United States. "(B) Acts, policies, and practices that are unjustifiable include, but are not limited to, any act, policy, or practice described in subparagraph (A) which denies national or mostfavored-nation treatment or the right of establishment or protection of intellectual property rights. "(5) Acts, policies, and practices that are discriminatory include, when appropriate, any act, policy, and practice which denies national or most-favored-nation treatment to United States goods, services, or investment. "(6) The term 'service sector access authorization' means any license, permit, order, or other authorization, issued under the authority of Federal law, that permits a foreign supplier of services access to the United States market in a service sector concerned. "(7) The term 'foreign country' includes any foreign instrumentality. Any possession or territory of a foreign country that is administered separately for customs purposes shall be treated as a separate foreign countrv. "(8) The term "Trade Representative means the United States Trade Representative. "(9) The term 'interested persons', only for purposes of sections 302(a)(4XB), 304(b)(lXA), 306(cX2), and 307(aX2), includes, but is not limiteid to, domestic firms and workers, representatives of consumer interests. United States product exporters, and any industrial user of any goods or services that may be affected by actions taken under subsection (a) or (b). •SEC. 302. INITIATION OF INVESTIGATIONS. "(a) PETITIONS.— "(1) Any interested person may file a petition with the Trade Representative requesting that action be taken under section 301 and setting forth the allegations in support of the request. "(2) The Trade Representative shall review the allegations in any petition filed under paragraph (1) and, not later than 45 days after the date on which the Trade Representative received the petition, shall determine whether to initiate an investigation. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1169 "(3) If the Trade Representative determines not to initiate an investigation with respect to a petition, the Trade Representative shall inform the petitioner of the reasons therefor and shall publish notice of the determination, together with a summary of such reasons, in the Federal Register. "(4) If ttie Trade Representative makes an affirmative determination under paragraph (2) with respect to a petition, the Trade Representative shall initiate an investigation reg£u*ding the issues raised in the petition. The Trade Representative shall publish a summary of the petition in the Federal Register and shall, as soon as possible, provide opportunity for the presentation of views concerning the issues, including a public hearing— "(A) within the 30-day period beginning on the date of the affirmative determination (or on a date after such period if agreed to by the petitioner) if a public hearing within such period is requested in the petition, or "(B) at such other time if a timely request therefor is made by the petitioner or by any interested person. "(b) iNmATiON PETITION.— OP INVESTIGATION BY MEANS OTHER Federal Register, publication. Federal Register, publication. THAN "(IXA) If the Trade Representative determines that an inves- Federal tigation should be initiated under this chapter with respect to Register, any matter in order to determine whether the matter is action- publication. able under section 301, the Trade Representative shall publish such determination in l^e Federal Register and shall initiate such investigation. "(B) The Trade Representative shall, before making any determination under subparagraph (A), consult with appropriate committees established pursuant to section 135. "(2XA) By no later than the date that is 30 days after the date on which a country is identified under section 182(aX2), the Trade Representative shall initiate an investigation under this chapter with respect to any act, policy, or practice of that country that— "(i) was the basis for such identification, and "(ii) is not at that time the subject of any other investigation or action under this chapter. "(B) The Trade Representative is not required under subparagraph (A) to initiate an investigation under this chapter with respect to any act, policy, or practice of a foreign country if the Trside Representative determines that the initiation of the investigation would be detrimental to United States economic interests. "(C) If the Trade Representative makes a determination under subparagraph (B) not to initiate an investigation, the Trade Reptresentative shall submit to the Congress a written report setting forth, in detail— "(i) the reasons for tiie determination, and "(ii) the United States economic interests that would be adversely affected by the investigation. "(D) The Trade Representative sludl, from time to time, consult with the Roister of Copyrights, the Conunissioner of Patents and Trademarks, and odier appropriate officers of the Federal Government, during any investigation initiated under this chapter by reason of subparagraph (A). 102 STAT. 1170 PUBLIC LAW 100-418—AUG. 23, 1988 "(c) DISCRETION.—In determining whether to initiate an investigation under subsection (a) or (b) of any act, policy, or practice that is enumerated in any provision of section 301(d), the Trade Representative shall have discretion to determine whether action under section 301 would be effective in addressing such act, policy, or practice. 19 u s e 2413. "SEC. 303. CONSULTATION UPON INITIATION OF INVESTIGATION. "(a) I N GENERAL.— .., "(1) On the date on which an investigation is initiated under section 302, the Trade Representative, on behalf of the United States, shall request consultations with the foreign country concerned regarding the issues involved in such investigation. "(2) If the investigation initiated under section 302 involves a trade agreement and a mutually acceptable resolution is not reached before the earlier of— "(A) the close of the consultation period, if any, specified in the trade agreement, or "(B) the 150th day after the day on which consultation was commenced, the Trade Representative shall promptly request proceedings on the matter under the formal dispute settlement procedures provided under such agreement. "(3) The Trade Representative shall seek information and advice from the petitioner (if any) and the appropriate committees established pursuant to section 135 in preparing United States presentations for consultations and dispute settlement proceedings. "(b) DELAY OF REQUEST FOR CONSULTATIONS.— "(1) Notwithstanding the provisions of subsection (a)— "(A) the United States Trade Representative may, after consulting with the petitioner (if any), delay for up to 90 days any request for consultations under subsection (a) for the purpose of verifying or improving the petition to ensure an adequate basis for consultation, and "(B) if such consultations are delayed by reason of subparagraph (A), each time limitation under section 304 shall be extended for the period of such delay. "(2) The Trade Representative shall— "(A) publish notice of any delay under paragraph (1) in the Federal Register, and "(B) report to Congress on the reasons for such delay in the report required under section 309(a)(3). Federal Register, publication. Reports. 19 u s e 2414. "SEC. 304. DETERMINATIONS BY THE TRADE REPRESENTATIVE. "(a) I N GENERAL.— 4 "(1) On the basis of the investigation initiated under section 302 and the consultations (and the proceedings, if applicable) under section 303, the Trade Representative shall— "(A) determine whether— "(i) the rights to which the United States is entitled under any trade agreement are being denied, or "(ii) any act, policy, or practice described in subsection (a)(lXB) or (b)(1) of section 301 exists, and "(B) if the determination made under subparagraph (A) is affirmative, determine what action, if any, the Trade Representative should take under subsection (a) or (b) of section 301. , ' -. M ' PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1171 "(2) The Trade Representative shall make the determinations required under paragraph (1) on or before— "(A) in the case of an investigation involving a trade agreement (other than the agreement on subsidies and countervailing measures described in section 2(cX5) of the Trade Agreements Act of 1979), the earlier of— "(i) the date that is 30 days after the date on which the dispute settlement procedure is concluded, or "(ii) the date that is 18 months after the date on which the investigation is initiated, or "(B) in all cases not described in subparagraph (A) or paragraph (3), the date that is 12 months after the date on which the investigation is initiated. "(3XA) If an investigation is initiated under this chapter by reason of section 302(bX2) and the Trade Representative does not make a determination described in subpars^aph (B) with respect to such investigation, the Trade Representative shall make the determinations required under paragraph (1) with respect to such investigation by no later than the date that is 6 months after the date on which such investigation is initiated. "(B) If the Trade Representative determines with respect to any investigation initiated by reason of section 302(bX2) that— "(i) complex or complicated issues are involved in the investigation that require additional time, "(ii) the foreign country involved in the investigation is Copyrights. making substantial progress in drafting or implementing Patents and l^islative or administrative measures that will provide trademarks. adequate and effective protection of intellectual property rights, or "(iii) such foreign country is undertaking enforcement measures to provide adequate and effective protection of intellectual property rights, the Trade Representative shall publish in the Federal Register Federal notice of such determination and shall make the determinations Register, required under paragraph (1) ¥ath respect to such investigation publication. by no later than the date that is 9 months after the date on which such investigation is initiated. "(4) In any case in which a dispute is not resolved before the Reports. close of the minimum dispute settlement period provided for in a trade agreement (other than the agreement on subsidies and countervailing measures described in section 2(cX5) of the Trade Agreements Act of 1979), the Trade Representative, within 15 days after the close of such dispute settlement period, shall submit a report to Congress setting forth the reasons why the dispute was not resolved within the minimum dispute settlement period, the status of the case at the close of the period, and the prospects for resolution. For purposes of this paragraph, the minimum dispute settlement period provided for under any such trade agreement is the total period of time that results u all stages of the formal dispute settlement procedures are carried out within the time limitations specified in the agreement, but computed without r ^ a r d to any extension authorized under the agreement at any sts^e. '(b) CONSULTATION BEFORE DETERMINATIONS.— "(1) Before making the determinations required under subsection (aXD, the Trade Representative, unless expeditious action is r e q u i r e d - 102 STAT. 1172 Federal R^ter, publication. 19 u s e 2415. PUBLIC LAW 100-418—AUG. 23, 1988 "(A) shall provide an opportunity (after giving not less than 30 days notice thereof) for the presentation of views by interested persons, including a public hearing if requested by any interested person, "(B) shall obtain advice from the appropriate committees established pursuant to section 135, and "(C) may request the views of the United States International iS-ade Commission regarding the probable impact on the economy of the United States of the taking of action with respect to any goods or service. "(2) If the Trade Representative does not comply with the requirements of subparagraphs (A) and (B) of paragraph (1) because expeditious action is required, the Trade Representative shall, after making the determinations under subsection (aXD, comply with such subparagraphs. "(c) PuBUCATiON.—The Trade Representative shall publish in the Federal Roister any determination made under subsection (aXD, together with a description of the facts on which such determination is based. "SEC. 305. IMPLEMENTATION OF ACTIONS. "(a) ACTIONS TO B E TAKEN UNDER SECTION 301.— "(1) Ebccept as provided in paragraph (2), the Trade Representative shall implement the action the Trade Representative determines under section 304(aXl)(B) to take under section 301, subject to the specific direction, if any, of the President r^arding any such action, by no later than the date that is 30 days after the date on which such determination is made. "(2XA) Except as otherwise provided in this paragraph, the Trade Representative may delay, by not more than 180 days, the implementation of any action that is to be taken under section 301— "(i)if"(D in the case of an investigation initiated imder section 302(a), the petitioner requests a delay, or "(11) in the case of an inv^tigation initiated under section 302a)Xl) or to which section 304(aX3XB) applies, a delay is requested by a majority of the representatives of the domestic industry that would benefit from the action, or "(ii) if the Trade Representative determines that substantial pn^ress is being made, or that a delay is necessary or desirable, to obtain United States r^hts or a satisfactory solution ¥dth respect to the acts, policies, or practices that are the subject of the action. "(B) The Trade Representative may not delay under subparagraph (A) the implementation of any action that is to be taken under section 301 with respect to any investigation to which section 304(aX3XA) applies. "(CJ) The TVade Representative may not delay under subparagraph (A) the implementation of any action that is to be taken under section 301 with respect to any investigation to which section 304(aX3)(B) applies by more than 90 days. "(b) ALTERNATIVE TARGETING.— ACTIONS IN CERTAIN CASES OF EXPORT "(1) If the Trade Representative makes an affirmative determination under section 304(aXlXA) involving export targeting PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1173 by a foreign country and determines to take no action under section 301 with respect to such affirmation determination, the Trade Representative— "(A) shall establish an advisory panel to recommend measures which will promote the competitiveness of the domestic industry affected by the export targeting, "(B) on the basis of the report of such panel submitted under paragraph (2XB) and subject to the specific direction, if any, of the President, may take any achninistrative actions authorized under any other provision of law, and, if necessary, propose legislation to implement any other actions, that would restore or improve the international competitiveness of the domestic industry affected by the export targeting, and (C) shall, by no later than the date that is 30 days after Reports. the date on which the report of such panel is submitted under paragraph (2XB), submit a report to the Congress on the administrative actions taken, and l^islative proposals made, under subparagraph (B) with respect to the domestic industry affected by the export targeting. "(2XA) The advisory panels established under paragraph (1)(A) shall consist of individuals appointed by the Trade Representative who— "(i) earn their livelihood in the private sector of the economy, including individuals who represent management and labor in the domestic industry affected by the export targeting that is the subject of the affirmative determination made under section 304(aXlXA), and "(ii) by education or experience, are qualified to serve on the advisory panel. "(B) By no later than the date that is 6 months after the date Reports. on which an advisory panel is established under paragraph dXA), the advisory panel shall submit to the Trade Representative and to the Congress a report on measures that the advisory panel recommends be taken by the United States to promote the competitiveness of the domestic industry affected by the export targeting that is the subject of the affirmative determination made under section 304(aXlXA). "SEC. 306. MONITORING OF FOREIGN COMPLIANCE. "(a) IN GENERAL.—^The Trade Representative shall monitor the implementation of each measure undertaken, or agreement of a kind described in clause (i), (ii), or (iii) of section 301(aX2XB) that is entered into under subsection (a) or (b) of section 301, by a foreign country— '(1) to enforce the rights of the United States under any trade agreement, or "(2) to eliminate any act, policy, or practice described in ^^ subsection (aXlXB) or (bXD of section 301. "(b) FURTHER ACTION.—If, on the basis of the monitoring carried out under subsection (a), the Trade Representative considers that a foreign country is not satisfactorily implementing a measure or agreement referred to in subsection (a), the Trade Representative shall determine what further action the Trade Representative shall take under section 301(a). For purposes of section 301, any such determination shall be treated as a determination made under section 304(aXl). 19 u s e 2416. 102 STAT. 1174 19 use 2417. PUBLIC LAW 100-418—AUG. 23, 1988 "(c) CONSULTATIONS.—Before making any determination under subsection (b), the Trade Representative shall— "(1) consult with the petitioner, if any, involved in the initial investigation under this chapter and with representatives of the domestic industry concerned; and "(2) provide an opportunity for the presentation of views by interested persons. "SEC. 307. MODIFICATION AND TERMINATION OF ACTIONS. "(a) I N GENERAL.— Federal Register, publication. "(1) The Trade Representative may modify or terminate any action, subject to the specific direction, if any, of the President with respect to such action, that is being taken under section 301 if— "(A) any of the conditions described in section 301(aX2) exist, "(B) the burden or restriction on United States commerce of the denial rights, or of the acts, policies, and practices, that are the subject of such action has increased or decreased, or "(C) such action is being taken under section 301(b) and is no longer appropriate. "(2) Before taking any action under paragraph (1) to modify or terminate any action taken under section 301, the Trade Representative shall consult with the petitioner, if any, and with representatives of the domestic industry concerned, and shall provide opportunity for the presentation of views by other interested persons affected by the proposed modification or termination concerning the effects of the modification or termination and whether any modification or termination of the action is appropriate. "(b) NOTICE; REPORT TO CONGRESS.—The Trade Representative shall promptly publish in the Federal Register notice of, and report jjj writing to the Congress with respect to, any modification or termination of any action taken under section 301 and the reasons therefor. "(c) REVIEW OF NECESSITY.— MaU. "(1) If— "(A) a particular action has been taken under section 301 during any 4-year period, and "(B) neither the petitioner nor any representative of the domestic industry which benefits from such action has submitted to the Trade Representative during the last 60 days of such 4-year period a written request for the continuation of such action, such action shall terminate at the close of such 4-year period. "(2) The Trade Representative shall notify by mail the petitioner and representatives of the domestic industry described in paragraph (IXB) of any termination of action by reason of paragraph (1) at least 60 days before the date of such termination. "(3) If a request is submitted to the Trade Representative under paragraph (1)(B) to continue taking a particular action under section 301, the Trade Representative shall conduct a review of— "(A) the effectiveness in achieving the objectives of section 301 of— PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1175 "(i) such action, and "(ii) other actions that could be taken (including actions against other products or services), and "(B) the effects of such actions on the United States Consumer protection. economy, including consumers. "SEC. 308. REQUEST FOR INFORMATION. "(a) IN GENERAL.—Upon receipt of written request therefor from any person, the Trade Representative shall make available to that person information (other than that to which confidentiality applies) concerning— "(1) the nature and extent of a specific trade policy or practice of a foreign country with respect to particular goods, services, investment, or intellectual property rights, to the extent that such information is available to the Trade Representative or other Federal agencies; :< "(2) United States rights under any trade agreement and the remedies which may be available under that agreement and under the laws of the United States; and "(3) past and present domestic and international proceedings or actions with respect to the policy or practice concerned. "(b) I F INFORMATION NOT AVAILABLE.—If information that is requested by a person under subsection (a) is not available to the Trade Representative or other Federal agencies, the Trade Representative shall, within 30 days after receipt of the request— "(1) request the information from the foreign government; or "(2) decline to request the information and inform the person in writing of the reasons for refusal. "(c) CERTAIN BUSINESS INFORMATION NOT MADE AVAILABLE.— 19 u s e 2418. Securities. Copyrights. Patents and trademarks. Classified "(1) Except as provided in paragraph (2), and notwithstanding information. any other provision of law (including section 552 of title 5, United States Code), no information requested and received by the Trade Representative in aid of any investigation under this chapter shall be made available to any person if— "(A) the person providing such information certifies that— "(i) such information is business confidential, "(ii) the disclosure of such information would endanger trade secrets or profitability, and "(iii) such information is not generally available; "(B) the Trade Representative determines that such certification is well-founded; and "(C) to the extent required in regulations prescribed by the Trade Representative, the person providing sucn information provides an adequate nonconfidential summary of such information. "(2) The Trade Representative may— "(A) use such information, or make such information available (in his own discretion) to any employee of the Federal Government for use, in any investigation under this chapter, or "(B) may make such information available to any other person in a form which cannot be associated with, or otherwise identify, the person providing the information. "SEC. 309. ADMINISTRATION. "The Trade Representative shall— 19 u s e 2419. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1176 Regulations. Reports. "(1) issue regulations concerning the filing of petitions and the conduct of investigations and hearings under this subchapter, "(2) keep the petitioner r^fularly informed of all determinations and developments regarding the investigation conducted with respect to the petition under this chapter, including the reasons for any undue delays, and "(3) submit a report to the House of Representatives and the Senate semiannually describing— "(A) the petitions filed and the determinations made (and reasons therefor) under section 302, "(B) developments in, and the current status of, each investigation or proceeding under this chapter, "(CJ) the actions taken, or the reasons for no action, by the Trade Representative under section 301 with respect to investigations conducted under this chapter, and "(D) the commercial effects of actions taken under section 301.". (b) Ck)NFORBiaNG AAIENDMENT.—^The table of contents of the Trade Act of 1974 is amended by striking out the items relating to chapter 1 of title i n and inserting in lieu thereof the following: "CHAFTEB 1—EINFORCEMENT OF UNITED STATES RIGHTS UNDER TRADE AGREEMENTS AND RESPONSE TO FOREIGN TRADE PRACTICES "Sec. 'Sec. 'Sec. "Sec. "Sec. "Sec. "Sec. "Sec. "Sec. 19 u s e 2411 note. 301. Actions by United States Trade Representative. 302. Initiation of investigations. 303. Consultation upon initiation of investigation. 304. Determinations by the Trade Representative. 305. Implementation of actions. 306. Monitoring of foreign compliance. 307. Modification and termination of actions. 308. Request for information. 309. Administration.". (c) EFFECTIVE DATE.—^The amendments made by this section shall apply to— (1) petitions filed, and investigations initiated, under section 302 of the Trade Act of 1974 on or after the date of the enactment of this Act; and (2) petitions filed, and investigations initiated, before the date of enactment of this Act, if by that date no decision had been made under section 304 r^arding the petition or investigation. SEC. 1302. IDENTIFICATION OF TRADE LIBERALIZATION PRIORITIES. (a) IN GENERAL.—Chapter 1 of title HI of the Trade Act of 1974, as amended by section 1301, is further amended by adding at the end thereof the following new section: 19 u s e 2420. "SEC. 310. IDENTIFICATION OF TRADE LIBERALIZATION PRIORITIES. "(a) I D E N T I F I C A T I O N . — "(1) By no later than the date that is 30 days after the date in calendar year 1989, and also the date in calendar year 1990, on which the report required under section 181(b) is submitted to the appropriate Congressional committees, the Trade Representative shall identify United States trade liberalization priorities, including— "(A) priority practices, including major barriers and trade distorting practices, the elimination of which are likely to have the most significant potential to increase PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1177 United States exports, either directly or through the establishment of a beneficial precedent; "(B) priority foreign countries that, on the basis of such report, satisfy the criteria in paragraph (2); (C) estimate the total amount by which United States exports of goods and services to each foreign country identified under subparagraph (B) would have increased during the preceding calendar year if the priority practices of such country identified under subparagraph (A) did not exist; and "(D) submit to the Committee on Finance of the Senate, the Committee on Ways and Means of the House of Representatives, and publish in the Federal Register, a report which lists— "(i) the priority foreign countries identified under subparagraph (B), "(ii) the priority practices identified under subparagraph (A) with respect to each of such priority foreign countries, and "(iii) the amount estimated under subparagraph (C) with respect to each of such priority foreign countries. "(2) In identifying priority foreign countries under paragraph (1)(B), the Trade Representative shall take into account— "(A) the number and pervasiveness of the acts, policies, and practices described in section 181(aXlXA), and "(B) the level of United States exports of goods and services that would be reasonably expected from full implementation of existing trade agreements to which that foreign country is a party, based on the international competitive position and export potential of such products and services. "(3) In identif5dng priority practices under paragraph (IXA), the Trade Representative shall take into account— "(A) the international competitive position and export potential of United States products and services, "(B) circumstances in which the sale of a small quantity of a product or service may be more significant than ite value, and "(C) the measurable medium-term and long-term implications of government procurement commitments to United States exporters. "(b) INITIATION OF INVESTIGATIONS.—By no later than the date that is 21 days after the date on which a report is submitted to the appropriate Congressional committees under subsection (aXlXD), the Trade Representative shall initiate under section 302(bXl) investigations under this chapter with respect to all of those priority practices identified in such report by reason of subsection (aXlXD) for each of the priority foreign countries. The Trade Representative may initiate investigations under section 302(bXl) with respect to all other priority practices identified under subsection (aXlXA). "(c) AGREEMENTS FOR THE EUMINATION OF BARRIERS.— "(1) In the consultations with a priority foreign country identified under subsection (aXD that the Trade Representative is required to request under section 303(a) with respect to an investigation initiated by reason of subsection (b), the Trade Representative shall seek to negotiate an agreement which provides for— Reports. Federal Register, publication. 102 STAT. 1178 PUBLIC LAW 100-418—AUG. 23, 1988 "(A) the elimination of, or compensation for, the priority practices identified under subsection (aXlXA) by no later than the close of the 3-year period beginning on the date on which such investigation is initiated, and "(B) the reduction of such practices over a 3-year period with the expectation that United States exports to the foreign country will, as a result, increase incrementally during each year within such 3-year period. "(2) Any investigation initiated under this chapter by reason of subsection (b) shall be suspended if an agreement described in subparagraphs (A) and (B) of paragraph (1) is entered into with the foreign country before the date on which any action under section 301 with respect to such investigation may be required under section 305(a) to be implemented. "(3) If an agreement described in paragraph (1) is entered into with a foreign country before the date on which any action under section 301 with respect to such investigation may be required under section 305(a) to be implemented and the Trade Representative determines that the foreign country is not in compliance with such agreement, the Trade Representative shall continue the investigation that was suspended by reason of such agreement as though such investigation had not been suspended. "(d) ANNUAL REPORTS.— "(1) On the date on which the report the Trade Representative is required to submit imder subsection (aXlXD) in calendar year 1990, and on the anniversary of such date in the succeeding calendar years, the Trade Representative shall submit a report which includes— "(A) revised estimates of the total amount determined under subsection (aXlXC) for each priority foreign country that has been identified under subsection (aXl)(B), "(B) evidence that demonstrates, in the form of increased United States exports to each of such priority foreign countries during the previous calendar year— "(i) in the case of a priority foreign country that has entered into an agreement described in subsection (cXD, substantial progress during each year within the 3-year period described in subsection (cXlXA) toward the goal of eliminating the priority practices identified under subsection (aXlXA) by the close of such 3-year period, and "(ii) in the case of a country which has not entered into (or has not complied with) an agreement described in subsection (cXD, the elimination of such practices, and "(C) to the extent that the evidence described in subparagraph (B) cannot be provided, any actions that have been taken by the Trade Representative under section 301 with respect to such priority practices of each of such foreign countries. "(2) The Trade Representative may exclude from the requirements of parsigraph (1) in any calendar year beginning after 1993 any foreign country that has been identified under subsection (aXlXA) if the evidence submitted under paragraph (IXB) in the 2 previous reports demonstrated that all the priority prac- PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1179 tices identified under subsection (aXlXA) with respect to such foreign country have been eliminated.", (b) CoNPORaoNG AMENDMENT.—The table of contents for the Trade Act of 1974 is amended by inserting after the item relating to section 309 the following new item: "Sec. 310. Identification of trade liberalization priorities.". SEC. 1303. IDENTIFICATION OF COUNTRIES THAT DENY ADEQUATE AND EFFECTIVE PROTECTION OF INTELLECTUAL PROPERTY RIGHTS. (a) FINDINGS AND PURPOSE.— Ck)pyrights. Patents and trademarks. "SEC. 182. IDENTIFICATION OF COUNTRIES THAT DENY ADEQUATE PROTECTION, OR MARKET ACCESS, FOR INTELLECTUAL PROPERTY RIGHTS. 19 USC 2242. 19 use 2242 (1) The Congress finds that— note. (A) international protection of intellectual property rights is vital to the international competitiveness of United States persons that rely on protection of intellectual property rights; and (B) the absence of adequate and effective protection of United States intellectual property rights, and the denial of fair and equitable market access, seriously impede the abihty of the United States persons that rely on protection of intellectual property rights to export and operate overseas, thereby harming the economic interests of the United States. (2) The purpose of this section is to provide for the development of an overall strat^y to ensure adequate and effective protection of intellectual property rights and fair and equitable market access for United States persons that rely on protection of intellectual property rights. (b) IN GENERAL.—Chapter 8 of title I of the Trade Act of 1974 is amended by adding at the end thereof the following new section: "(a) IN GENERAL.—By no later than the date that is 30 days after the date on which the annual report is submitted to Congressional committees under section 181(b), the United States Trade Representative (hereafter in this section referred to as the 'Trade Representative') shall identify— "(1) those foreign countries that— "(A) deny adequate and effective protection of intellectual property rights, or "(B) deny fair and equitable market access to United States persons that rely upon intellectual property protection, and "(2) those foreign countries identified under paragraph (1) that are determined by the Trade Representative to be priority foreign countries. "(b) SPECIAL RULES FOR IDENTIFICATIONS.— "(1) In identifying priority foreign countries under subsection (aX2), the Trade Representative shall only identify those foreign countries— "(A) that have the most onerous or e g r ^ o u s acts, policies, or practices that— "(i) deny adequate and effective intellectual property rights, or 102 STAT. 1180 PUBLIC LAW 100-418—AUG. 23, 1988 "(ii) deny fair and equitable market access to United States persons that rely upon intellectual property protection, "(B) whose acts, policies, or practices described in subparagraph (A) have the greatest adverse impact (actual or potential) on the relevant United States products, and '\C) that are not— "(i) entering into good faith negotiations, or "(ii) making significant progress in bilateral or multilateral negotiations, to provide adequate and effective protection of intellectual property rights. "(2) In identifying priority foreign countries under subsection (aX2), the Trade Representative shall— "(A) consult with the Register of Copyrights, the Commissioner of Patents and Trademarks, other appropriate officers of the Federal Government, and "(B) take into account information from such sources as may be available to the Trade Representative and such information as may be submitted to the Trade Representative by interested persons, including information contained in reports submitted under section 181(b) and petitions submitted under section 302. "(3) The Trade Representative may identify a foreign country under subsection (aXlXB) only if the Trade Representative finds that there is a factual basis for the denial of fair and equitable market access as a result of the violation of international law or agreement, or the existence of barriers, referred to in subsection (3X3). "(c) REVOCATIONS AND ADDITIONAL IDENTIFICATIONS.— "(1) The Trade Representative may at any time— "(A) revoke the identification of any foreign country as a priority foreign country under this section, or "(B) identify any foreign country as a priority foreign country under this section, if information available to the Trade Representative indicates that such action is appropriate. "(2) The Trade Representative shall include in the semiannual report submitted to the Congress under section 309(3) a detailed explanation of the reasons for the revocation under paragraph (1) of the identification of any foreign country as a priority foreign country under this section. "(d) DEFINITIONS.—For purposes of this section— "(1) The term 'persons that rely upon intellectual property protection' means persons involved in— "(A) the creation, production or licensing of works of authorship (within the meaning of sections 102 and 103 of title 17, United States Code) that are copyrighted, or "(B) the manufacture of products that are patented or for which there are process patents. "(2) A foreign country denies adequate and effective protection of intellectual property rights if the foreign country denies ,, adequate and effective means under the laws of the foreign country for persons who are not citizens or nationeds of such foreign country to secure, exercise, and enforce rights relating to patents, process patents, registered trademarks, copyrights and mask works. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1181 "(3) A foreign country denies fair and equitable market access if the foreign country effectively denies access to a market for a product protected by a copjrright, patent, or process patent through the use of laws, procedures, practices, or r^ulations which— "(A) violate provisions of international law or international agreements to which both the United States and the foreign country are parties, or "(B) constitute discriminatory nontariff trade barriers. "(e) PuBUCATiON.—The Trade Representative shall publish in the Federal R^^ter a list of foreign countries identified under subsection (a) and shall make such revisions to the list as may be required lyjr reason of action under subsection (c).". (c) CONFORBfONG AMENDMENTS.— (1) The heading for chapter 8 of title I of the Trade Act of 1974 is amended to read as follows: "CHAPTER 8—IDENTIFICATION OF MARKET BARRIERS AND CERTAIN UNFAIR TRADE ACTIONS". (2) The table of contents for the Trade Act of 1974 is amended— (A) by striking out the item relating to chapter 8 of title I and inserting in lieu thereof the following: "CHAPTBH 8—IDENTIFICATION OF MARKET BARRIERS AND CERTAIN UNFAIR TRADE PRACTICES", and (B) by inserting after the item relating to section 181 the following new item: "Sec 182. Identification of countries that deny adequate protection, or market access, for intellectual property rigfate.". SEC 1304. AMENDMENTS TO THE NATIONAL TRADE ESTIMATES. (a) IN GENERAL.—Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is amended— (1) by striking out "Not later than the date on which the initial report is required under subsection (bXD/' in subsection (aXD and inserting in lieu thereof "For calendar year 1988, and for each succeeding calendar year,", (2) by inserting of each foreign country" after "or practices" in subsection (aXlXA), (3) by strildng out "and" at the end of subsection (aXlXAXii), (4) by striking out the period at the end of subsection (aXl)(B) and inserting in lieu thereof "; and", (5) by addmg at the end of subsection (aXl) the following new subparagraph: "(C) make an estimate, if feasible, of— "(i) the value of additional goods and services of the United States, and "(ii) the value of additional foreign direct investment by United States persons, that would have been exported to, or invested in, each foreign country during such calendar year if each of such acts, policies, and prsictices of such country did not exist.", (6) by striking out and" at the end of subsection (aX2XC), Federal Register, publication. 102 STAT. 1182 PUBLIC LAW 100-418—AUG. 23, 1988 (7) by striking out the period at the end of subsection (a)(2)(D) and inserting in lieu thereof "; and", (8) by adding at the end of subsection (a)(2) the following new subparagraph: "(E) the actual increase in— "(i) the value of goods and services of the United States exported to, and "(ii) the value of foreign direct investment made in, •^ the foreign country during the calendar year for which the estimate under paragraph (1)(C) is made.", (9) by inserting "and with the assistance of the interagency advisory committee established under section 141(d)(2)," after "Trade Expansion Act of 1962," in subsection (a)(1), and (10) by striking out "ACTIONS CONCERNING" in the section heading and inserting in lieu thereof "ESTIMATES OF". (b) SUBMISSION OF REPORT.—Paragraph (1) of section 181(b) of the Trade Act of 1974 (19 U.S.C. 2241(b)(1)) is amended to read as follows: "(1) On or before April 30, 1989, and on or before March 31 of each succeeding calendar year, the Trade Representative shall submit a report on the analysis and estimates made under subsection (a) for the calendar year preceding such calendar year (which shall be known as the 'National Trade Estimate') to the President, the Committee on Finance of the Senate, and appropriate committees of the House of Representatives.". SEC. 1305. INVESTIGATION OF BARRIERS IN JAPAN TO CERTAIN UNITED STATES SERVICES. ' The United States Trade Representative shall, within 90 days after the date of enactment of this Act, initiate an investigation under section 302 of the Trade Act of 1974 regarding those acts, policies, and practices of the Government of Japan, and of entities owned, financed, or otherwise controlled by the Government of Japan, that are barriers in Japan to the offering or performance by United States persons of architectural, engineering, construction, and consulting services in Japan. SEC. 1306. TRADE AND ECONOMIC RELATIONS WITH JAPAN. (a) FINDINGS.—The Congress finds that— (1) the United States is at a critical juncture in bilateral relations with Japan; (2) the balance of trade between the United States and Japan has deteriorated steadily from an already large United States deficit of $10,400,000,000 in 1980 to an unprecedented United States deficit of $57,700,000,000 in 1987, a magnitude that is simply untenable; (3) approximately 90 percent of the increase in total trade between the United States and Japan since 1980 has been in Japanese exports to the United States; (4) United States exports to Japan have not significantly beneHted from appreciation of the yen; (5) the United States deficit in the balance of trade in manufactured goods is growing: in 1987 Japan exported $82,500,000,000 of manufactured goods to the United States, while the United States exported $14,600,000,000 in manufactured goods; PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1183 (6) Japan accounts for 49 percent of the worldwide deficit of the United States in the balance of trade in manufactured goods, calculated on a customs basis; (7) our trade and economic relations with Japan are complex and cannot be effectively resolved through narrow sector-bysector n^otiations; (8) a major problem between the United States and Japan is the absence of a political will in Japan to import; and (9) meaningful negotiations must take place at the highest level, at a special summit of political leaders from both countries. (b) SENSE OF THE CONGRESS.— (1) It is the sense of the Congress that the President should propose to the Japanese Prime Minister that a special summit be held between the leaders of the United States and Japan for the purpose of— (A) addressing trade and economic issues, and (B) establishing— (i) an agreement that provides objectives for improvement in trade and economic relations, and (ii) targets for achieving these objectives. (2) The delegation of the United States to the summit meeting described in subsection (a) should include— (A) Members of Congress from both political parties, and > (B) appropriate officers of the executive branch of the United States Government. (3) The delegation of Japan to the summit meeting described in subsection (a) should include— (A) representatives of all political parties in Japan, and (B) appropriate officers of the Grovernment of Japan. SEC. 1307. SUPERCOMPUTER TRADE DISPUTE. (a) FINDINGS.—The Congress finds that— (1) United States manufacturers of supercomputers have encountered significant obstacles in selling supercomputers in Japan, particularly to government agencies and universities; (2) Japanese government procurement policies and pricing practices have denied United States manufacturers access to the Japanese supercomputer market; (3) it has been reported that officials of the Ministry of International Trade and Industry of Japan have told United States Government officials that Japanese government agencies and universities do not intend to purchase supercomputers from United States manufacturers, or take steps to improve access for United States manufacturers; (4) the United States Government in August 1987 signed an agreement with the Government of Japan establishing procedures for the procurement of United States supercomputers by the Government of Japan; (5) concern remains as to implementation of the procurement agreement by the Government of Japan; (6) there have been all^ations that Japanese manufacturers of supercomputers have been offering supercomputers at drastically discounted prices in the markets of the United States, Japan, and other countries; (7) deep price discounting raises the concern that Japan's large-scale vertically int^rated manufacturers of 102 STAT. 1184 PUBLIC LAW 100-418—AUG. 23, 1988 supercomputers have targeted the supercomputer industry with the objective of eventual domination of the global computer market; and (8) the supercomputer industry plays a central role in the technological competitiveness and national security of the United States. (b) SENSE OP CONGRESS.—It is the sense of the Congress that the United States Trade Representative and other appropriate officials of the United States Government should— (1) give the highest priority to concluding and enforcing agreements with the Government of Japan which achieve improved market access for United States manufacturers of supercomputers and end any predatory pricing activities of Japanese companies in the United States, Japan, and other countries; and (2) continue to monitor the efforts of United States manufacturers of supercomputers to gain access to the Japanese market, recognizing that the Government of Japan may continue to manipulate the government procurement process to maintain the market dominance of Japanese manufacturers. PART 2—IMPROVEMENT IN THE ENFORCEMENT OF THE ANTIDUMPING AND COUNTERVAILING DUTY LAWS SEC. 1311. REFERENCE TO TITLE VII OF THE TARIFF ACT OF 1930. Unless otherwise provided, whenever in this part an amendment or repeal is expressed in terms of an amendment to, or repeal of, a subtitle, section, subsection, or other provision, the reference shall be considered to be made to a subtitle, section, subsection, or other provision of title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.). SEC. 1312. ACTIONABLE DOMESTIC SUBSIDIES. Paragraph (5) of section 771 (19 U.S.C. 1677(5)) is amended to read as follows: "(5) SUBSIDY.— "(A) IN GENERAL.—The term 'subsidy' has the same meaning as the term 'bounty or grant' as that term is used in section 303, and includes, but is not limited to, the following: "(i) Any export subsidy described in Annex A to the Agreement (relating to illustrative list of export subsidies). "(ii) The following domestic subsidies, if provided or required by government action to a specific enterprise or industry, or group of enterprises or industries, whether publicly or privately owned and whether paid or bestowed directly or indirectly on the manufacture, production, or export of any class or kind of merchandise: "(I) The provision of capital, loans, or loan guarantees on terms inconsistent with commercial considerations. "(II) The provision of goods or services at preferential rates. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1185 "(IID The grant of funds or forgiveness of debt to cover operating losses sustained by a specific industry. "QV) The assumption of any costs or expenses of manufacture, production, or cQstribution. "(B) SPECIAL RULE.—^In applying subparagraph (A), the administering authority, in each investigation, shall determine whether the bounty, grant, or subsidy in law or in fact is provided to a specific enterprise or industry, or group of enterprises or industries. Nominal general availability, under the terms of the law, r^ulation, program, or rule establishing a bounty, grant, or subsidy, of the benefits thereunder is not a basis for determining that the bounty, grant, or subsidy is not, or has not been, in fact provided to a specific enterprise or industry, or group thereof.". SEC. 1313. CALCULATION OF SUBSIDIES ON CERTAIN PROCESSED AGRICULTURAL PRODUCTS. (a) I N GENERAL.—Title VII of the Tariff Act of 1930 is amended by inserting after section 771A (19 U.S.C. 1677-1) the following new section: "SEC. 771B. In the case of an agricultural product processed from 19 USC 1677-2. a raw agricultural product in which (1) the demand for the prior stage product is substantially dependent on the demand for the latter stage product, and (2) the processing operation adds only limited value to the raw commodity, subsidies found to be provided to either producers or processors of the product shall be deemed to be provided with respect to the manufacture, production, or exportation of the processed product.". (b) CoNFORiiaNG AMENDSCENT.—^The table of contents for title VII of the Tariff Act of 1930 is amended by inserting after the item relating to section 771A the following: "Sec. 771B. Calculation of subsidies on certain processed agricultural products.". SEC. 1314. REVOCATION OF STATUS AS A COUNTRY UNDER THE AGREEMENT. Section 701 (19 U.S.C. 1671) is amended— (1) by redesignating subsection (c) as subsection (d); and (2) by inserting after subsection (b) the following new subsection: "(c) REVOCATION OP STATUS AS A COUNTRY UNDER THE AGREE- MENT.—^The United States Trade Representative may revoke the status of a foreign country as a country under the Agreement for purposes of this subtitle if such foreign country— "(1) announces that such foreign country does not intend, or is not d^le, to honor the obligations it has assumed with respect to the United States or the Agreement for purposes of this subtitle, or "(2) does not in fact honor such obligations.". SEC. 1315. TREATMENT OF INTERNATIONAL CONSORTIA. Section 701 (19 U.S.C. 1671) (as amended by section 1314) is further amended— (1) by redesignating subsection (d) as subsection (e); and (2) by inserting after subsection (c) the following new subsection: 102 STAT. 1186 PUBLIC LAW 100-418—AUG. 23, 1988 "(d) TREATMENT OF INTERNATIONAL CJONSORTIA.—For purposes of this subtitle, if the members (or other participating entities) of an international consortium that is engaged in the production of a class or kind of merchandise subject to a countervailing duty investigation receive subsidies from their respective home countries to assist, permit, or otherwise enable their participation in that consortium through production or manufacturing operations in their respective home countries, then the administering authority shall cumulate all such subsidies, as well as subsidies provided directly to the international consortium, in determining any countervailing duty upon such merchandise.". SEC. 1316. DUMPING BY NONMARKET ECONOMY COUNTRIES. (a) I N GENERAL.—Subsection (c) of section 773 (19 U.S.C. 1677b) is amended to read £is follows: "(c) NONMARKET ECONOMY COUNTRIES.— "(1) I N GENERAL.—If— "(A) the merchandise under investigation is exported from a nonmarket economy country, and "(B) the administering authority finds that available information does not permit the foreign market value of the merchandise to be determined under subsection (a), the administering authority shall determine the foreign market value of the merchandise on the basis of the value of the factors of production utilized in producing the merchandise and to which shall be added an amount for general expenses and profit plus the cost of containers, coverings, and other expenses, as required by subsection (e). Except as provided in paragraph (2), the valuation of the factors of production shall be based on the best available information regarding the values of such factors in a market economy country or countries considered to be appropriate by the administering authority. (2) EXCEPTION.—If the administering authority finds that the available information is inadequate for purposes of determining the foreign market value of merchandise under paragraph (1), the administering authority shall determine the foreign market value on the basis of the price at which merchandise that is— "(A) comparable to the merchandise under investigation, and "(B) produced in one or more market economy countries that are at a level of economic development comparable to that of the nonmarket economy country, is sold in other countries, including the United States. "(3) FACTORS OF PRODUCTION.—For purposes of paragraph (1), the factors of production utilized in producing merchandise include, but are not limited to— "(A) hours of labor required, "(B) quantities of raw materials employed, "(C) amounts of energy and other utilities consumed, and "(D) representative capital cost, including depreciation. "(4) VALUATION OF FACTORS OF PRODUCTION.- -The administering authority, in valuing factors of production under paragraph (1), shall utilize, to the extent possible, the prices or costs of factors of production in one or more market economy countries that are— "(A) at a level of economic development comparable to that of the nonmarket economy country, and PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1187 "CB) significant producers of comparable merchandise.". (b) NoNMARKET EcoNOicY COUNTRY DEFINED.—Section 771 (19 U.S.C. 1677) is amended by adding at the end thereof the following new paragraph: "(18) NONMARKET ECONOMY COUNTRY.— "(A) I N GENERAL.—^The term 'nonmarket economy country* means any foreign country that the administering authority determines does not operate on market principles of cost or pricing structures, so that sales of merchandise in such country do not reflect the fair value of the merchandise. "(B) FACTORS TO BE CONSTOERED.—In making determinations under subparagraph (A) the administering authority shall take into account— "(i) the extent to which the currency of the foreign country is convertible into the currency of other countries; "(ii) the extent to which wage rates in the foreign country are determined by free bargaining between labor and management, "(iii) the extent to which joint ventures or other investments by firms of other foreign countries are permitted in the foreign country, "(iv) the extent of government ownership or control of the means of production, "(v) the extent of government control over the allocation of resources and over the price and output decisions of enterprises, and "(vi) such other factors as the administering authority considers appropriate. "(C) DETERMINATION IN EFFECT.— "(i) Any determination that a foreign country is a nonmarket economy country shall remain in effect until revoked by the administering authority. "(ii) The administering authority may make a determination under subparagraph (A) with respect to any foreign country at any time. "CD) DETERMINATIONS NOT IN ISSUE.—Notwithstanding any other provision of law, any determination made by the administering authority under subparagraph (A) shall not be subject to judicial review in any investigation conducted under subtitle B. "(E) COLLECTION OF INFORAIATION.—Upon request by the administering authority, the Commissioner of Customs ( shall provide the administering authority a copy of all public and proprietary information submitted to, or obtained by, the Commissioner of Customs that the administerii^ authority considers relevant to proceedings involving merchandise from nonmarket economy countries. The administering authority shall protect proprietary Classified information obtained under this section from public disclo- information. sure in accordance with section 777.". (c) SUSPENSION OF NONMARKET ECONOMY CJOUNTRY INVESTIGA- TIONS.—Section 734 (19 U.S.C. 1673c) is amended by adding at the end thereof the following new subsection: "G) SPECIAL RULE FOR NONMARKET ECONOMY COUNTRIES.— 102 STAT. 1188 PUBLIC LAW 100-418—AUG. 23, 1988 "(1) I N GENERAL.—The administering authority may suspend an investigation under this subtitle upon acceptance of an agreement with a nonmarket economy country to restrict the volume of imports into the United States of the merchandise under investigation only if the administering authority determines that— "(A) such agreement satisfies the requirements of subsection (d), and "(B) will prevent the suppression or undercutting of price levels of domestic products by imports of the merchandise under investigation. "(2) FAILURE OF AGREEMENTS.—If the administering authority determines that an agreement accepted under this subsection no longer prevents the suppression or undercutting of domestic prices of merchandise manufactured in the United States, the provisions of subsection (i) shall apply.". 19 u s e 1677k. SEC. 1317. THIRD-COUNTRY DUMPING. (a) DEFINITIONS.—For purposes of this section: (1) The term "Agreement" means the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade (relating to antidumping measures). (2) The term "Agreement country" means a foreign country that has accepted the Agreement. (3) The term "Trade Representative" means the United States Trade Representative. (b) PETITION BY DOMESTIC INDUSTRY.— (1) A domestic industry that produces a product that is like or directly competitive with merchandise produced by a foreign country (whether or not an Agreement country) may, if it has reason to believe that— (A) such merchandise is being dumped in an Agreement country; and (B) such domestic industry is being materially injured, or threatened with material injury, by reason of such dumping; submit a petition to the Trade Representative that alleges the elements referred to in subparagraphs (A) and (B) and requests the Trade Representative to take action under subsection (c) on behalf of the domestic industry. (2) A petition submitted under paragraph (1) shall contain such detailed information as the Trade Representative may require in support of the allegations in the petition. (c) APPLICATION FOR ANTIDUMPING ACTION ON BEHALF OF THE DOMESTIC INDUSTRY.— (1) If the Trade Representative, on the basis of the information contained in a petition submitted under paragraph (1), determines that there is a reasonable basis for the allegations in the petition, the Trade Representative shall submit to the appropriate authority of the Agreement country where the alleged dumping is occurring an application pursuant to Article 12 of the Agreement which requests that appropriate antidumping action under the law of that country be taken, on behalf of the United States, with respect to imports into that country of the merchandise concerned. (2) At the request of the Trade Representative, the appropriate officers of the Department of Commerce and the United PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1189 States International Trade Ck>mmission shall assist the Trade Representative in preparing the application under paragraph (1). (d) CONSULTATION AFTER SUBMISSION OP APPUCATION.—After submitting an application under subsection (cXD* the Trade Representative shall seek consultations with the appropriate authority of the Agreement country r^arding the request for antidumping action. (e) ACTION UPON REFUSAL OF AGREEMENT COUNTRY TO ACT.—If the appropriate authority of an Agreement country refuses to undertake antidumping measures in response to a request made therefor by the Trade Representative under subsection (c), the Trade Representative shall promptly consult with the domestic industry on whether action under any other law of the United States is appropriate. SEC. 1318. INPUT DUMPING BY RELATED PARTIES. Subsection (e) of section 773 (19 U.S.C. 1677b(e)) is amended— (1) by striking out "(3)" each place it appears in paragraph (2) and inserting "(4)", (2) by redesignating paragraph (3) as paragraph (4), (3) by inserting after paragraph (2) the following new paragraph: "(3) SPECIAL RULE.—^If, r^arding any transaction between persons specified in any one of the subparagraphs of paragraph (4) involving the production by one of such persons of a major input to the merchandise under consideration, the administering authority has reasonable grounds to believe or suspect that an amount represented as the value of such input is less than the costs of production of such input, then the administering authority may determine the value of the major input on the best evidence available r^arding such costs of production, if such costs are greater than the amount that would be determined for such input under paragraph (2).", and (4) by striking out "paragraph (2)" in paragraph (4) (as redesignated by paragraph (2)) and inserting "paragraphs (2) and (3)". SEC 1319. FICTITIOUS MARKETS. Subsection (a) of section 773 of the Tariff Act of 1930 (19 U.S.C. 1677b(a)) is amended by adding at the end thereof the following new paragraph: "(5) FICTITIOUS MARKETS.—^The occurrence of different movements in the prices at which different forms of any merchandise subject to an antidumping duty order issued under this title are sold (or, in the absence of sales, offered for sale) after the issuance of such order in the principal markets of the foreign country from which the merchandise is exported may be considered by the administering authority as evidence of the establishment of a fictitious market for the merchandise if the movement in such prices appears to reduce the amount by which the foreign market value of the merchandise exceeds the United Stat^ price of the merchandise.". SEC. 1320. DOWNSTREAM PRODUCT MONITORING. (a) IN GENERAL.—Subtitle D (19 U.S.C. 1677 et seq.) is amended by adding at the end thereof the following: 102 STAT. 1190 19 u s e 16771. PUBLIC LAW 100-418—AUG. 23, 1988 •SEC. 780. DOWNSTREAM PRODUCT MONITORING. "(a) PETITION REQUESTING MONITORING.— Federal Register, publication. "(1) I N GENERAL.—A domestic producer of an article that is like a component part or a downstream product may petition the administering authority to designate a downstream product for monitoring under subsection (b). The petition shall specify— "(A) the downstream product, "(B) the component product incorporated into such downstream product, and "(C) the reasons for suspecting that the imposition of antidumping or countervailing duties has resulted in a diversion of exports of the component part into increased production and exportation to the United States of such downstream product. "(2) DETERMINATION REGARDING PETITION.—Within 14 days after receiving a petition submitted under paragraph (1), the administering authority shall determine— "(A) whether there is a reeisonable likelihood that imports into the United States of the downstream product will increase as an indirect result of any diversion with respect to the component part, and "(B) whether— "(i) the component part is already subject to monitoring to aid in the enforcement of a bilateral arrangement (within the meaning of section 804 of the Trade and Tariff Act of 1984), "(ii) merchandise related to the component part and manufactured in the same foreign country in which the component part is manufactured has been the subject of a significant number of investigations suspended under section 704 or 734 or countervailing or antidumping duty orders issued under this title or section 303, or "(iii) merchandise manufactured or exported by the manufacturer or exporter of the component part that is similar in description and use to the component part has been the subject of at least 2 investigations suspended under section 704 or 734 or countervailing or antidumping duty orders issued under this title or section 303. "(3) FACTORS TO TAKE INTO ACCOUNT.—In making a determination under paragraph (2XA), the administering authority may, if appropriate, take into account such factors as— "(A) the value of the component part in relation to the value of the downstream product, "(B) the extent to which the component part has been substantially transformed as a result of its incorporation into the downstream product, and "(C) the relationship between the producers of component parts and producers of downstream products. "(4) PuBUCATiON OF DETERMINATION.—The administering authority shall publish in the Federal Register notice of each determination made under paragraph (2) and, if the determination made under paragraph (2XA) and a determination made under any subparagraph of paragraph (2XB) are affirmative, shall transmit a copy of such determinations and the petition to the Commission. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1191 "(5) DETERMINATIONS NOT SUBJECT TO JUDICIAL REVIEW.—Not- withstanding any other provision of law, any determination made by the administering authority under paragraph (2) shall not be subject to judicial review. "(b) MONITORING BY THE COMMISSION.— "(1) I N GENERAL.—If the determination made under subsection (aX2XA) and a determination made under any clause of subsection (aX2XB) with respect to a petition are affirmative, the Commission shall immediately commence monitoring of trade in the downstream product that is the subject of the determination made under subsection (aX2XA). If the Commission finds that imports of a downstream product being monitored increased during any calendar quarter by 5 percent or more over the preceding quarter, the Commission shall analyze that increase in the context of overall economic conditions in the product sector. "(2) REPORTS.—^The Commission shall make quarterly reports Public to the administering authority regarding the monitoring and information. analyses conducted under paragraph (1). The Commission shall make the reports available to the public. "(c) ACTION ON BASIS OF MONITORING REPORTS.—The administering authority shall review the information in the reports submitted by the C]k)mmission under subsection (bX2) and shall— "(1) consider the information in determining whether to initiate an investigation under section 702(a), 732(a), or 303 regarding any downstream product, and *(2) request the Commission to cease monitoring any downstream product if the information indicates that imports into the United States are not increasing and there is no reasonable likelihood of diversion with respect to component parts. "(d) DEFINITIONS.—For purposes of this section— "(1) The term 'component part' means any imported article that— "(A) during the 5-year period ending on the date on which the petition is filed under subsection (a), has been subject to— "(i) a countervailing or antidumping duty order issued under this title or section 303 that requires the deposit of estimated countervailing or antidumping duties imposed at a rate of at least 15 percent ad valorem, or "(ii) an agreement entered into under section 704, 734, or 303 after a preliminary affirmative determination under section 703(b), 733(bXl), or 303 was made by the administering authority which included a determination that the estimated net subsidy was at least 15 percent ad valorem or that the estimated average amount by which the foreign market value exceeded the United States price was at least 15 percent ad valorem, and "(B) because of its inherent characteristics, is routinely used as a major part, component, assembly, subassembly, or material in a downstream product. "(2) The term 'downstream product' means any manufactured article— "(A) which is imported into the United States, and "(B) into which is incorporated any component part.". 102 STAT. 1192 PUBLIC LAW 100-418—AUG. 23, 1988 (b) CONFORMING AMENDMENT.—The table of contents for title VII of the Tariff Act of 1930 is amended by inserting after the item relating to section 779 the following: "Sec. 780. Downstream product monitoring.". SEC. 1321. PREVENTION OF CIRCUMVENTION OF ANTIDUMPING AND COUNTERVAILING DUTY ORDERS. (a) I N GENERAL.—Subtitle D (19 U.S.C. 1677 et seq.) (as amended by section 1320) is further amended by adding at the end thereof the following: 19 u s e 1677J. "SEC. 781. PREVENTION OF CIRCUMVENTION OF ANTIDUMPING AND COUNTERVAILING DUTY ORDERS. "(a) MERCHANDISE COMPLETED OR ASSEMBLED IN THE UNITED STATES.— "(1) IN GENERAL.—If— "(A) merchandise sold in the United States is of the same class or kind as any other merchandise that is the subject of— "(i) an antidumping duty order issued under section 736, "(ii) a finding issued under the Antidumping Act, 1921, or "(iii) a countervailing duty order issued under section 706 or section 303, "(B) such merchandise sold in the United States is completed or assembled in the United States from parts or components produced in the foreign country with respect to which such order or finding applies, and "(C) the difference between the value of such merchandise sold in the United States and the value of the imported parts and components referred to in subparagraph (B) is small, the administering authority, after taking into account any advice provided by the Commission under subsection (e), may include within the scope of such order or finding the imported parts or components referred to in subparagraph (B) that are used in the completion or assembly of the merchandise in the United States at any time such order or finding is in effect. "(2) FACTORS TO CONSIDER.—In determining whether to include parts or components in a countervailing or antidumping duty order or finding under paragraph (1), the administering authority shall take into account such factors as— "(A) the pattern of trade, "(B) whether the manufacturer or exporter of the parts or components is related to the person who assembles or completes the merchandise sold in the United States from the parts or components produced in the foreign country with respect to which the order or finding described in paragraph (1) applies, and "(C) whether imports into the United States of the parts or components produced in such foreign country have increased after the issuance of such order or finding. "Ob) MERCHANDISE COMPLETED OR ASSEMBLED IN OTHER FOREIGN COUNTRIES.— "(1) I N GENERAL.—If— PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1193 "(A) merchandise imported into the United States is of the same class or kind as any merchandise produced in a foreign country that is the subject of— "(i) an antidumping duty order issued under section 736, "(ii) a finding issued under the Antidumping Act, 1921, or "(iii) a countervailing duty order issued under section 706 or section 303, "(B) before importation into the United States, such imported merchandise is completed or assembled in another foreign country from merchandise which— "(i) is subject to such order or finding, or "(ii) is produced in the foreign country with respect to which such order or finding applies, "(C) the difference between the value of such imported merchandise and the value of the merchandise described in subparagraph (B) is small, and "(D) the administering authority determines that action is appropriate under this pars^aph to prevent evasion of such order or finding, the administering authority, after taking into account any advice provided by the Commission under subsection (e), may include such imported merchandise within the scope of such order or findii^ at any time such order or finding is in effect. "(2) FACTORS TO CONSIDER.—In determining whether to include merchandise assembled or completed in a foreign country in a countervailing or antidumping duty order or finding under paragraph (1), the administering authority shall take into account such factors as— "(A) the pattern of trade, "(B) whether the manufacturer or exporter of the merchandise described in paragraph (1)(B) is related to the person who uses the merchan<Use described in paragraph (1)(B) to assemble or complete in the foreign country the merchandise that is subsequently imported into the United . States, and "(C) whether imports into the foreign country of the merchandise described in paragraph (IXB) have increased after the issuance of such order or finding. *(c) MINOR ALTERATIONS OF MERCHANDISE.— "(1) IN GENERAL.—^The class or kind of merchandise subject to— "(A) an investigation under this title, "(B) an antidumping duty order issued under section 736, "(C) a finding issued under the Antidumping Act, 1921, or "(D) a countervailing duty order issued under section 706 or section 303, shall include articles altered in form or appearance in minor respects (including raw agricultural products that have undergone minor processing), whether or not included in the same tariff classification. "(2) EXCEPTION.—Paragraph (1) shall not apply with respect to altered merchandise if the administering authority determines that it would be unnecessary to consider the altered merchandise within the scope of the investigation, order, or finding. '(d) LATER-DEVELOPED MERCHANDISE.— 102 STAT. 1194 PUBLIC LAW 100-418—AUG. 23, 1988 "(1) I N GENERAL.—For purposes of determining whether merchandise developed after an investigation is initiated under this title or section 303 (hereafter in this paragraph referred to £is the 'later-developed merchandise') is within the scope of an outstanding antidumping or countervailing duty order issued under this title or section 303 as a result of such investigation, the administering authority shall consider whether— "(A) the later-developed merchandise has the same general physical characteristics as the merchandise with respect to which the order was originally issued (hereafter in this paragraph referred to as the 'earlier product'), "(B) the expectations of the ultimate purchcisers of the later-developed merchandise are the same as for the earlier product, "(C) the ultimate use of the earlier product and the laterdeveloped merchandise are the same, "(D) the later-developed merchandise is sold through the same channels of trade as the earlier product, and "(E) the later-developed merchandise is advertised and displayed in a manner similar to the earlier product. The administering authority shall take into account any advice provided by the Commission under subsection (e) before making a determination under this subparagraph. "(2) EXCLUSION FROM ORDERS.—The administering authority may not exclude a later-developed merchandise from a countervailing or antidumping duty order merely because the merchandise— "(A) is classified under a tariff classification other than that identified in the petition or the administering authority's prior notices during the proceeding, or "(B) permits the purchaser to perform additional functions, unless such additional functions constitute the primary use of the merchandise and the cost of the additional functions constitute more than a significant proportion of the total cost of production of the merchandise. "(e) COMMISSION ADVICE.— "(1) NOTIFICATION TO COMMISSION OF PROPOSED ACTION.— Before making a determination— "(A) under subsection (a) with respect to merchandise completed or assembled in the United States (other than minor completion or assembly), "(B) under subsection (b) with respect to merchandise completed or assembled in other foreign countries, or "(C) under subsection (d) with respect to any later-developed merchandise which incorporates a significant technological advance or significant alteration of an earlier product, with respect to an antidumping or countervailing duty order or finding as to which the Commission has made an affirmative injury determination, the administering authority shall notify the Commission of the proposed inclusion of such merchandise in such countervailing or antidumping order or finding. Notwithstanding any other provision of law, a decision by the administering authority regarding whether any merchandise is within a category for which notice is required under this paragraph is not subject to judicial review. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1195 "(2) REQUEST FOR CONSULTATION.—After receiving notice under paragraph (1), the Commission may request consultations with the administering authority r ^ a r d m g the inclusion. Upon the request of the Commission, the administering authority shall consult with the Commission and any such consultation shall be completed within 15 days after the date of the request. "(3) COMMISSION ADVICE.—If the Commission believes, after consultation under paragraph (2), that a significant injury issue is presented by the proposed inclusion, the Commission may provide written advice to the administering authority as to whether the inclusion would be inconsistent with the affirmative determination of the Commission on which the order or finding is based. If the Commission decides to provide such written advice, it shall promptly notify the administering authority of its intention to do so, and must provide such advice within 60 days after the date of notification under paragraph (1). For purposes of formulating its advice with respect to merchandise completed or assembled in the United States from parts or components produced in a foreign country, the Commission shall consider whether the inclusion of such parts or components taken as a whole would be inconsistent with its prior affirmative determination.", (b) CONFORMING AMENDMENT.—The table of contents for title VII of the Tariff Act of 1930 is amended by inserting after the item relating to section 780 the following: "Sec. 781. Prevention of circumvention of antidumping and countervailing duty orders.". SEC. 1322. STEEL IMPORTS. Section 805 of the Trade and Tariff Act of 1984 (19 U.S.C. 2253, note) is amended by adding at the end thereof the following new subsection: "(dXD Any steel product that is manufactured in a country that is not party to a bilateral arrangement from steel which was melted and poured in a country that is party to a bilateral arrangement Giereafter in this subsection referred to as an 'arrangement country') may be treated for purposes of the quantitative restrictions and related terms under that arrangement as if it were a product of the arrangement country. "(2) The President may implement such procedures as may be necessary or appropriate to carry out the purpose of paragraph (1). "(3) The United States Trade Representative may, in a manner consistent with the purpose of any so-called 'third country equity provision' of an arrangement entered into under the President's Steel Policy, take such actions as he deems necessary with respect to steel imports of any other country or countries so as to ensure the effectiveness of any portion of such arrangement". SEC. 1323. SHORT LIFE CYCLE PRODUCTS. (a) ESTABLISHMENT OF PRODUCT CATEGORIES FOR SHORT LIFE CYCLE MERCHANDISE.—Subtitle B is amended by adding at the end thereof the following new section: "SEC. 739. ESTABLISHMENT OF PRODUCT CATEGORIES FOR SHORT LIFE 19 USC 1673h. CYCLE MERCHANDISE. "(a) ESTABLISHMENT OF PRODUCT CATEGORIES.— "(1) PETITIONS.— 102 STAT. 1196 PUBLIC LAW 100-418—AUG. 23, 1988 "(A) I N GENERAL.—An eligible domestic entity may file a petition with the Commission requesting that a product category be established with respect to short life cycle merchandise at any time after the merchandise becomes the subject of 2 or more affirmative dumping determinations. "(B) CONTENTS,—A petition filed under subparagraph (A) shall— "(i) identify the short life cycle merchandise that is the subject of the affirmative dumping determinations, "(ii) specify the short life cycle merchandise that the petitioner seeks to have included in the same product category as the merchandise that is subject to the affirmative dumping determinations, "(iii) specify any short life cycle merchandise the petitioner particularly seeks to have excluded from the product category, "(iv) provide reasons for the inclusions and exclusions specified under clauses (ii) and (iii), and "(v) identify such merchandise in terms of the designations used in the Tariff Schedules of the United States. "(2) DETERMINATIONS ON SUFFICIENCY OF PETITION.—Upon Federal Register, publication. receiving a petition under paragraph (1), the Commission shall— "(A) request the administering authority to confirm promptly the affirmative determinations on which the petition is based, and "(B) upon receipt of such confirmation, determine whether the merchandise covered by the confirmed affirmative determinations is short life cycle merchandise and whether the petitioner is an eligible domestic entity. "(3) NOTICE; HEARINGS.—If the determinations under paragraph (2)(B) are affirmative, the Commission shall— "(A) publish notice in the Federal Register that the petition h£is been received, and "(g) provide Opportunity for the presentation of views regarding the establishment of the requested product category, including a public hearing if requested by any interested person. "(4) DETERMINATIONS.— "(A) I N GENERAL.—By no later than the date that is 90 days after the date on which a petition is filed under paragraph (1), the Commission shall determine the scope of the product category into which the short life cycle merchandise that is the subject of the affirmative dumping determinations identified in such petition shall be classified for purposes of this section. "(B) MODIFICATIONS NOT REQUESTED BY PETITION.— "(i) I N GENERAL.—The Commission may, on its own initiative, make a determination modifying the scope of any product category established under subparagraph (A) at any time. "(ii) NOTICE AND HEARING.—Determinations may be made under clause (i) only after the Commission has— "(I) published in the Federal Register notice of the proposed modification, and ^^m^mi PUBLIC LAW 100-418—AUG. 23, 1988 i 102 STAT. 1197 "(ID provided interested parties an opportunity for a hearing, and a period for the submission of written comments, on the classification of merchandise into the product cat^ories to be affected by such determination. "(O BASIS OF DETERMINATIONS.—In making determina- tions under subparagraph (A) or (B), the Commission shall ensure that each product category consists of similar short life cycle merchandise which is produced by similar processes under similar circumstances and has similar uses. *(b) DEFINITIONS.—^For purposes of this section— "(1) EuGiBLE DOMESTIC ENTITY.—^The term 'el^ble domestic entity' means a manufacturer or producer in the United States, or a certified union or rea^nized union or group of workers which is representative of an industry in the United States, that manufactures or produces short life cycle merchandise that is— "(A) like or directly competitive with other merchandise that is the subject of 2 or more affirmative dumping determinations, or "(B) is similar enough to such other merchandise as to be considered for inclusion with such merchandise in a product monitoring cat^ory established under this section. "(2) AFFQUMATIVE DUMPING DETERMINATION.—^The term 'affirmative dumpii^ determination' means— "(A) any affirmative final determination made by the administering authority under section 735(a) during the 8year period preceding the filing of the petition under this section that results in the issuance of an antidumping duty order under section 736 which requires the deposit of estimated antidumping duties at a rate of not less than 15 percent ad valorem, or "(B) any affirmative preliminary determination that— "(i) is made by the administering authority under section 733(b) during the 8-year period preceding the filing of the petition under this section in the course of an investigation for which no final determination is made under section 735 by reason of a suspension of the investigation under section 734, and "(ii) includes a determination that the estimated ^ average amount by which the foreign market value of the merchandise exceeds the United States price of the merchandise is not less than 15 percent ad valorem. "(3) SUBJECT OF AFFIRMATIVE DUMPING DETERMINATION.— "(A) IN GENERAL.—Short life cycle merchandise of a manufacturer shall be treated as being the subject of an affirmative dumping determination only if the administering authority— "(i) makes a separate determination of the amount by which the foreign market value of such merchandise of the manufacturer exceeds the United States price of such merchandise of the manufacturer, and "(ii) specifically identifies the manufacturer by name with such amount in the affirmative dumping determination or in an antidumping duty order issued as a result of the affirmative dumping determination. 102 STAT. 1198 PUBLIC LAW 100-418—AUG. 23, 1988 "(B) EXCLUSION.—Short life cycle merchandise of a manufacturer shall not be treated as being the subject of an affirmative dumping determination if— "(i) such merchandise of the manufacturer is part of a group of merchandise to which the administering authority assigns (in lieu of making separate determinations described in subparagraph (AXiXD) an amount determined to be the amount by which the foreign market value of the merchandise in such group exceeds the United States price of the merchandise in such group, and "(ii) the merchandise and the manufacturer are not specified by name in the affirmative dumping determination or in any antidumping duty order issued as a result of such affirmative dumping determination. "(4) SHORT U F E CYCLE MERCHANDISE.—The term 'short life cycle merchandise' means any product that the Commission determines is likely to become outmoded within 4 years, by reason of technological advances, after the product is commercially available. For purposes of this paragraph, the term 'outmoded' refers to a kind of style that is no longer state-of-the-art. "(c) TRANSITIONAL RULES.— 19 use 1673b. "(1) For purposes of this section and section 733(bXl) (B) and (C), all affirmative dumping determinations described in subsection (bX2XA) that were made after December 31, 1980, and before the date of enactment of the Omnibus Trade and Competitiveness Act of 1988, and all affirmative dumping determinations described in subsection (bX2XB) that were made after December 31, 1984, and before the date of enactment of such Act, with respect to each category of short life cycle merchandise of the same manufacturer shall be treated as one affirmative dumping determination with respect to that category for that manufacturer which was made on the date on which the latest of such determinations was made. "(2) No affirmative dumping determination that— "(A) is described in subsection 0)X2XA) and was made before January 1,1981, or "(B) is described in subsection (bX2XB) and was made before January 1,1985, may be taken into account under this section or section 733(bXl) (B) and (C).". Ot)) EXPEDITED DUMPING INVESTIGATIONS.—Section 733 (19 U.S.C. 1673) is amended as follows: (1) Paragraph (1) of subsection 0)X1) is amended to read as follows: "(1) PERIOD OP ANTIDUMPING DUTY INVESTIGATION.— ir "(A) I N GENERAL.—Except as provided in subparagraph (B), within 160 days after the date on which a petition is filed under section 732(b), or an investigation is commenced under section 732(a), but not before an affirmative determination by the Commission under subsection (a) of this section, the administering authority shall make a determination, based upon the best information available to it at the time of the determination, of whether there is a reasonable basis to believe or suspect that the merchandise is being sold, or is likely to be sold, at less than fair value. If the determination of the administering authority under PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1199 this subsection is affirmative, the determination shall include the estimated average amount by which the foreign market value exceeds the United States price. "(B) IF CERTAIN SHORT UFE CYCLE MERCHANDISE INVOLVED.—If a petition filed under section 732(b), or an investigation commenced under section 732(a), concerns short life cycle merchandise that is included in a product cat^ory established under section 739(a), subparagraph (A) shall be applied— "(i) by substituting '120 days' for '160 days* if manufacturers that are second offenders account for a significant proportion of the merchandise under investigation, and "(ii) by substituting '100 days' for '160 dajrs' if manufacturers that are multiple offenders account for a significant proportion of die merchandise under investigation. "(C) DEFINITIONS OF OFFENDERS.—For purposes of subparagraph (B)— "(i) The term 'second offender' means a manufacturer that is specified in 2 affirmative dumping determinations (within the meaning of section 739) as the manufacturer of short life cycle merchandise that is— "(I) specified in both such determinations, and "(II) within the scope of the product category referred to in subparagraph (B). "(ii) The term 'multiple offender' means a manufacturer that is specified in 3 or more affirmative dumping determinations (within the meaning of section 739) as the manufacturer of short life cycle merchandise that is— "(I) specified in each of such determinations, and "(II) within the scope of the product category referred to in subparagraph (B).". (2) Paragraph (1) of subsection (c) is amended by inserting at the end thereof the following sentence: "No extension of a determination date may be made under this paragraph for any investigation in which a determination date provided for in subsection (bXl)(B) applies unless the petitioner submits written notice to the administering authority of its consent to the extension.". (3) Subsection (eXD is amended by adding at the end thereof the following flush sentence: "The administering authority shall be treated as having made an affirmative determination under subparagraph (A) in any investigation to which subsection (bXlXB) is applied.", (c) CONFORMING AMENDMENT.—^The table of contents for title VII of tJie Tariff Act of 1930 is amended by inserting after the item relating to section 739 the following: "Sec. 739. Establishment of product categories for short life cycle merchandise.". SEC. 1324. CRITICAL CIRCUMSTANCES. (a) COUNTERVAILING DUTY INVESTIGATIONS.— (1) Section 702 (19 U.S.C. 1671a) is amended by adding at the end thereof the following new subsection: "(e) INFORMATION REGARDING CRITICAL CIRCUMSTANCES.—If, at any time after the initiation of an investigation under this subtitle. 102 STAT. 1200 Records. PUBLIC LAW 100-418—AUG. 23, 1988 the administering authority finds a reasonable basis to suspect that the alleged subsidy is inconsistent with the Agreement, the administering authority may request the Commissioner of Customs to compile information on an expedited basis regarding entries of the class or kind of merchandise that is the subject of the investigation. Upon receiving such request, the Commissioner of Customs shall collect information regarding the volume and value of entries of the class or kind of merchandise that is the subject of the investigation and shall transmit such information to the administering authority at such times as the administering authority shall direct (at least once every 30 days), until a final determination is made under section 705(a), the investigation is terminated, or the administering authority withdraws the request.". (2) Paragraph (1) of section 703(e) (19 U.S.C. 1671b(eXl)) is amended by inserting "(at any time after the initiation of the investigation under this subtitle)" after "promptly". (3) Subparagraph (A) of section 705(b)(4) (19 U.S.C. 1671d(bX4XA)) is amended to read as follows: "(A) RETROACTIVE APPLICATION.— "(i) I N GENERAL.—If the finding of the administering authority under subsection (aX2) is affirmative, then the final determination of the Commission shall include a finding as to whether retroactive imposition of a countervailing duty on the merchandise appears necessary to prevent recurrence of material injury that was caused by massive imports of the merchandise over a relatively short period of time and will be difficult to repair. (ii) PREVENTION OF RECURRENCE.—For purposes of making its finding under clause (i), the Commission shall make an evaluation as to whether the effectiveness of the countervailing duty order would be materially impaired if such imposition did not occur. "(iii) EVALUATION OF EFFECTIVENESS.—In making the evaluation under clause (ii), the Commission shall consider, among other factors it considers relevant— "(I) the condition of the domestic industry, "(II) whether massive imports of the merchandise over a relatively short period of time can be accounted for by efforts to avoid the potential imposition of countervailing duties, (III) whether foreign economic conditions led to the massive imports of the merchandise, and "(IV) whether the impact of the massive imports of the merchandise is likely to continue for some period after issuance of the countervailing duty order under this subtitle.", (b) ANTIDUMPING DUTY INVESTIGATIONS.— (1) Section 732 (19 U.S.C. 1673a) is amended by adding at the end thereof the following new subsection: Records. "(e) INFORMATION REGARDING CRITICAL CIRCUMSTANCES.—If, a t any time after the initiation of an investigation under this subtitle, the administering authority finds a reasonable basis to suspect that— "(1) there is a history of dumping in the United States or elsewhere of the class or kind of the merchandise which is the subject of the investigation, or PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1201 "(2) the person by whom, or for whose account, the merchandise was imported knew, or should have known, that the exporter was seUing the merchandise which is the subject of the investigation at less than its fair value, the administering authority may request the Commissioner of Customs to compile information on an expedited basis r^arding entries of the class or kind of merchandise that is the subject of the investigation. Upon receiving such request, the Commissioner of Customs shall collect information reganting the volume and value of entries of the class or kind of merchandise that is the subject of the invest^ation and shall transmit such information to the administering authority at such times as the administering authority shall direct (at least once every 30 days), until a final determination is made under section 735(a), the investigation is terminated, or the administering authority withdraws the request.". (2) Paragraph (1) of section 733(e) (19 U.S.C. 1673b(eXl)) is amended by inserting "(at any time after the initiation of the investigation under this subtitle)" after "promptly". (3) Subparagraph (A) of section 735(bX4) (19 U.S.C. 1673d(bX4XA)) is amended to read as follows: "(A) RETROACTTVE APPUCATION.— "(i) IN GENERAL.—If the finding of the administering authority under subsection (aX3) is affirmative, then the final determination of the Commission shall include a finding as to whether retroactive imposition of antidumping duties on the merchandise appears necessary to prevent recurrence of material injury that was caused by massive imports of the merchandise over a relatively short period of time. "(ii) PREVENTION OF RECURRENCE.—^For purposes of making its finding under clause (i), the Commission shall make an evaluation as to whether the effectiveness of the antidumping duty order would be materially impaired if such imposition did not occur. "(iii) EIvALUATiON OF EFFECTIVENESS.—In making the evaluation under clause (ii), the O)mmission shall consider, among other factors it considers relevant— "(I) the condition of the domestic industry, "(II) whether massive imports of the merchandise in a relatively short period of time can be accounted for by efforts to avoid the potential imposition of antidumping duties, "(III) whether foreign economic conditions led to the massive imports of the merchandise, and "(TV) whether the impact of the massive imports of the merchandise is likely to continue for some period after issuance of the antidumping duty order under this subtitle.". SEC. 1325. EXPEDITED REVIEW AUTHORITY. (a) IN GENERAL.—Paragraph (1) of section 736(c) (19 U.S.C. 1673e(cXl)) is amended to read as follows: "(1) CONDITIONS FOR WAIVER OF DEPOSIT OF ESTIMATED DUTIES.—^The administering authority may permit, for not more than 90 days after the date of publication of an order under subsection (a), the posting of a bond or other security in lieu of 102 STAT. 1202 PUBLIC LAW 100-418—AUG. 23, 1988 the deposit of estimated antidumping duties required under subsection (a)(3) if— "(A) the investigation has not been designated as extraordinarily complicated by reason of— '(i) the number and complexity of the transactions to be investigated or adjustments to be considered, "(ii) the novelty of the issues presented, or "(iii) the number of firms whose activities must be investigated, "(B) the final determination in the investigation has not been postponed under section 735(a)(2)(A); "(C) on the basis of information presented to the administering authority by any manufacturer, producer, or exporter in such form and within such time as the administering authority may require, the administering authority is satisfied that a determination will be made, within 90 days after the date of publication of an order under subsection (a), of the foreign market value and the United States price for all merchandise of such manufacturer, producer, or exporter described in that order which was entered, or withdrawn from warehouse, for consumption on or after the date of publication of^ "(i) an affirmative preliminary determination by the administering authority under section 733(b), or "(ii) if its determination under section 733(b) was negative, an affirmative final determination by the administering authority under section 735(a), and before the date of publication of the affirmative final determination by the Commission under section 735(b); "(D) the party described in subparagraph (C) provides credible evidence that the amount by which the foreign market value of the merchandise exceeds the United States price of the merchandise is significantly less than the amount of such excess specified in the antidumping duty order published under subsection (a); and "(E) the data concerning the foreign market value and the United States price apply to sales in the usual commercial quantities and in the ordinary course of trade and the number of such sales are sufficient to form an adequate basis for comparison.", (b) BUSINESS PROPRIETARY INFORMATION.—Subsection (c) of section 736 (19 U.S.C. 1673e(c)) is amended by adding at the end thereof the following new paragraph: "(4) PROVISION OF BUSINESS PROPRIETARY INFORMATION; WRIT- TEN COMMENTS.—Before determining whether to permit the posting of bond or other security under paragraph (1) in lieu of the deposit of estimated antidumping duties, the administering authority shall— "(A) make all business proprietary information supplied to the administering authority under paragraph (1) available under a protective order in accordance with section 777(c) to all interested parties described in subparagraph (C), (D), (E), (F), or (G) of section 771(9), and "(B) afford all interested parties an opportunity to file written comments on whether the posting of bond or other security under paragraph (1) in lieu of the deposit of estimated antidumping duties should be permitted.'. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1203 SEC. 1326. PROCESSED AGRICULTURAL PRODUCTS. (a) DEFINITION OF INDUSTRY PRODUCING PROCESSED AGRICULTURAL PRODUCTS.—Paragraph (4) of section 771 (19 U.S.C. 1677(4)) is amended by addmg at the end thereof the following new subparagraph: "(E) INDUSTRY PRODUCTS.— ** PRODUCING PROCESSED AGRICULTURAL "(i) IN GENERAL.—Subject to clause (v), in an investigation involving a processed agricultural product produced from any raw agricultural product, the producers or growers of the raw agricultural product may be considered part of the industry producing the processed product if— "(I) the processed agricultural product is produced from the raw agricultural product through a single continuous line of production; and "(ID there is a substantial coincidence of economic interest between the producers or growers of the raw agricultural product and the processors of the proce^ed agricultural product based upon relevant economic factors, which may, in the discretion of the Commission, include price, added market value, or other economic interrelationships (regardless of whether such coincidence of economic interest is based upon any legal relationship), "(ii) PROCESSING.—For purposes of this subparagraph, the processed agricultural product shall be considered to be processed from a raw agricultural product through a single continuous Line of production if— "(I) the raw agricultural product is substantially or completely devoted to the production of the processed agricultural product; and "(IE) the processed agricultural product is produced substantially or completely from the raw product. "(iii) RELEVANT ECONOMIC FACTORS.—For purposes of clause (i)(n), in addition to such other factors it considers relevant to the question of coincidence of economic interest, the O)mmission shall— "(I) if price is taken into account, consider the d^ree of correlation between the price of the raw agricultural product and the price of the proce^ed agricultural product; and "(II) if added market value is taken into account, consider whether the value of the raw agricultural product constitutes a significant percentage of the value of the processed agricultural product. "(iv) RAW AGRICULTURAL PRODUCT.—For purposes of this subparagraph, the term 'raw agricultural product' means any farm or fishery product. "(v) TERMINATION OF THIS SUBPARAGRAPH.—This subparagraph shall cease to have effect if the United States IVade Representative notifies the administering authority and the Commission that the application of ^ 102 STAT. 1204 PUBLIC LAW 100-418—AUG. 23, 1988 this subparagraph is inconsistent with the international obligations of the United States.". (b) THREAT OF MATERIAL INJURY.—Section 771(7XF) (19 U.S.C. 1677(7XF)) is amended— (1) by striking out "and" at the end of subclause (VII); (2) by striking out the period at the end of subclause (VIII) and inserting ", and"; and (3) by adding at the end thereof the following: "(IX) in any investigation under this title which involves imports of both a raw agricultural product (within the meaning of paragraph (4XEXiv)) and any product processed from such raw agricultursd product, the likelihood that there will be increased imports, by reason of product shifting, if there is an affirmative determination by the Commission under section 705(bXl) or 735(bXl) with respect to either the raw agricultural product or the processed agricultural product (but not both).". (c) INTERESTED PARTIES.—Section 771(9) (19 U.S.C. 1677(9)) is amended— (1) by striking out "and" at the end of subparagraph (E); (2) by striking out the period at the end of subparagraph (F) and inserting in lieu thereof ", and"; and (3) by adding at the end thereof the following new subparagraph: "(G) in any investigation under this title involving an industry engaged in producing a processed agricultural product, as defined in paragraph (4XE), a coalition or trade association which is representative of either— "(i) processors, "(ii) processors and producers, or "(iii) processors and growers, but this subparagraph shall cease to have effect if the United States Trade Representative notifies the administering authority and the Commission that the application of this subparagraph is inconsistent with the international obligations of the United States.". (d) CONFORMING AMENDMENTS.— 19 use 1671 et ««9. (1) Title VII of the Tariff Act of 1930 is amended by striking o u t " s u b p a r a g r a p h (C), (D), (E), or (F) of section 771(9)" each place it appears and inserting in lieu thereof "subparagraph (C), (D), (E), (F), or (G) of section 771(9)". (2) Title VII of the Tariff Act of 1930 is amended by striking out "subparagraph (C), (D), (E), and (F) of section 771(9)" each place it appears and inserting in lieu thereof "subparagraph (C), (D), (E), (F), or (G) of section 771(9)". (3) Subsection (a) of section 516 of the Tariff Act of 1930 (19 U.S.C. 1516(a)) is amended by adding at the end thereof the following new paragraph: "(3) Any producer of a raw agricultural product who is considered under section 771(4XE) to be part of the industry producing a processed agricultural product of the same class or kind as the designated imported merchandise shall, for purposes of this section, be treated as an interested party producing such processed agricultural product.". PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1205 SEC. 1327. LEASES EQUIVALENT TO SALES. Section 771 (19 U.S.C. 1677) is amended by adding at the end thereof the foUowii^ new paragraph: "(19) EQUIVALENCY OP LEASES TO SALES.—In determining whether a lease is equivalent to a sale for purposes of this title, the administering authority shall consider— "(A) the terms of the lease, "(B) commercial practice within the industry, "(C) the circumstances of the transaction, "(D) whether the product subject to the lease is in' t^rated into the operations of the lessee or importer, (E) whether in practice there is a likelihood that the lease will be continued or renewed for a significant period of time, and "(F) other relevant factors, including whether the lease transaction would permit avoidance of antidumping or countervailii^ duties.". SEC 1328. MATERIAL INJURY. Section 771(7) (19 U.S.C. 1677(7)) is amended— (1) by amending subparagraph (B) to read as follows: "(B) VOLUME AND CONSEQUENT IMPACT.—In making deter- minations under sections 703(a), 705(b), 733(a), and 735(b), the Commission, in each case— "(i) shall consider— "(I) the volume of imports of the merchandise which is the subject of the investigation, "(II) the effect of imports of that merchandise on prices in the United States for like products, and "(IQ) the impact of imports of such merchandise on domestic producers of like products, but only in the context of production operations within the United States; and "(ii) may consider such other economic factors as are relevant to the determination regarding whether there is material injury by reason of imports. In the notification required under section 705(d) or 735(d), as the case may be, the Commission shall explain its analysis of each factor considered under clause (i), and identify each factor considered under clause (ii) and explain in full its relevance to the determination."; and (2) by amending subparagraph (CO^ (A) by amending the neaiding to read as follows: "(Q EVALUATION OP RELEVANT PACTORS.—", (B) by striking out "price undercutting" in clause (ii) and inserting "price underselling", and (C) bv amending clause (iii) to read as follows: (iii) IMPACT ON APPECTED DOMESTIC INDUSTRY.—In examining the impact required to be considered under subparagraph (BXiii), the (Commission shall evaluate all relevant economic factors which have a bearing on the stete of the industry in the United Stotes, including, but not limited to— "(I) actual and potential decline in output, sales, market share, profits, productivity, return on investments, and utilization of capacity, "dD factors affecting domestic prices. 102 STAT. 1206 PUBLIC LAW 100-418—AUG. 23, 1988 Employment and unemployment. ^^^" "(III) actual and potential negative effects on cash flow, inventories, emplo5rment, wages, growth, ability to raise capital, and investment, and • "(IV) actual and potential negative effects on the 7i existing development and production efforts of the domestic industry, including efforts to develop a derivative or more advanced version of the like product. The Commission shall evaluate all relevant economic factors described in this clause within the context of the business cycle and conditions of competition that are distinctive to the affected industry.". SEC. 1329. THREAT OF MATERIAL INJURY. Subparagraph (F) of section 771(7) (19 U.S.C. 1677(7XF)) (as amended by section 1326) is further amended— (1) by striking out "and" at the end of clause (i)(VIII), (2) by striking out the period at the end of clause (iXIX), (3) by adding at the end of clause (i) the following new subclause: "(X) the actual and potential negative effects on the existing development and production efforts of the * domestic industry, including efforts to develop a derivative or more advanced version of the like product.", and (4) by adding at the end thereof the following: "(iii) EFFECT OF DUMPING IN THIRD-COUNTRY MARKETS.— '' * : ;\! i«ij, *'**'* "(I) I N GENERAL.—In investigations under subtitle B, the Commission shall consider whether dumping in the markets of foreign countries (as evidenced by dumping findings or antidumping remedies in other GATT member markets against the same class or kind of merchandise manufactured or exported by the same party as under investigation) suggests a threat of material injury to the domestic industry. In the course of its investigation, the Commission shall request information from the foreign manufacturer, exporter, or United States importer concerning this issue. "(II) GATT MEMBER MARKET.—For purposes of this clause, the term 'GATT member market' means the market of any country which is a signatory to The Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade (relating to antidumping measures). "(Ill) EUROPEAN COMMUNITIES.—For purposes of this clause, the European Communities shall be treated as a foreign country.". SEC. 1330. CUMULATION. (a) THREAT OF INJURY.—Subparagraph (F) of section 771(7) (19 U.S.C. 1677(7XF)) (as amended by section 1329) is further amended by adding at the end thereof the following new clause: "(iv) CUMULATION.—To the extent practicable and subject to subparagraph (CXv), for purposes of clause (i) (III) and (IV) the Commission may cumulatively assess PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1207 the volume and price effects of imports from two or more countries if such imports— "(I) compete with each other, and with like products of the domestic industry, in the United States market, and "(U) are subject to any investigation under section 303,701, or 731.". (b) TREATBCENT OF NEGUGIBLE IMPORTS.—Subparagraph (C) of section 771(7) (19 U.S.C. 1677(7X0) is amended by adding at the end thereof the following new clause: "(v) TREATMENT OF NEGUGIBLE IMPORTS.—The Commission is not required to apply clause (iv) or subparagraph (FXiv) in any case in wluch the (Commission determines that imports of the merchandise subject to investigation are n^ligible and have no discemaUe adverse impact on the domestic industry. For purposes of makmg such determination, the Commission shall evaluate all relevant economic factors r^arding the imports, including, but not limited to, whether— "(I) the volume and market share of the imports are n^ligible, "(n) sales transactions involving the imports are isolated and sporadic, and "(OS) the domestic market for the like product is price sensitive by reason of the nature of the product, so that a small quantity of imports can result in price suppression or depression. For purposes of this clause, the (Dommission may treat as n^ligible and having no discemable adverse impact on the domestic industry imports that are the product of any country that is a party to a free trade area agreement with the United States which entered into force and effect before January 1, 1987, if the Commission determines that the domestic industry is not being materially injured by reason of such imports.". SEC. 1331. CERTIFICATION OF SUBMISSIONS. Section 776 (19 U.S.C. 1677e) is amended— (1) by redesignating subsections (a) and (b) as subsections (b) and (c), respectively, (2) by amending the heading to subsection (b) (as so redesignated) to read as follows: "(b) VERIFICATION.—", and (3) by inserting before such subsection (b) the following: "(a) CtaiTiFiCATiON OF SUBMISSIONS.—Any person providing factual information to the administering authority or the C!ommission in connection with a proceeding under this title on behalf of the petitioner or any other interested party shall certify that such information is accurate and complete to the best of tjiat perscm's knowledge.". SEC. 1332. ACCESS TO INFORMATION. Section 777 (19 U.S.C. 1677£) is amended— (1) by amending subsection (bXl)(BXii) to read as follows: "(ii) a statement to the administering authority or ,t, the Commission that the business proprietary informa- 102 STAT. 1208 PUBLIC LAW 100-418—AUG. 23, 1988 tion is of a type that should not be released under administrative protective order,"; (2) by amending subsection (cXl)— (A) by amending subparagraph (A) to read as follows: "(A) IN GENERAL.—Upon receipt of an application (before or after receipt of the information requested) which describes in general terms the information requested and sets forth the reasons for the request, the administering authority or the Conunission shall make all business proprietary information presented to, or obtained by it, during a proceeding (except privil^ed information, classified information, and specific information of a type for which there is a clear and compelling need to withhold from disclosure) available to interested piarties who are parties to the proceeding under a protective order described in subparagraph (B), r^ardless of when the information is submitt^ during a proceeding."; and (B) by adding at the end thereof the following new subparagraphs: "(C) TIME LIMITATION ON DETERMINATIONS.—The admin- istering authority or the Commission, as the case may be, shall determine whether to make information available under this paragraph— "(i) not later than 14 days (7 d a ^ if the submission pertains to a proceeding under section 703(a) or 733(a)) after the date on which the information is submitted, or "(ii) if— "d) the person that submitted the information raises objection to its release, or "(ID the information is unusually voluminous or complex, not later than 30 days (10 days if the submission pertains to a proceeding under section 703(a) or 733(a)) after the date on which the information is submitted. "(D) AVAILABILITY AFTER DETERMINATION.—If the deter- mination under subparagraph (C) is affirmative, then— "(i) the business proprietary information submitted to the administering authority or the Commission on or before the date of the determination shall be made available, subject to the terms and conditions of the protective order, on such date; and "(ii) the business proprietsury information submitted to the administering authority or the C!ommission after the date of the determination shall be served as required by subsection (d). "(E) FAILURE TO DISCLOSE.—If a person submitting information to the administering authority refuses to disclose business proprietary information which the administering authority determines should be released under a protective order described in subparajgraph (B), the administering authority shaU return the information, and any nonconfidential summary thereof, to the person submitting the information and summary and shall not consider either."; (3) by striking out "or the (Dommission denies a request for proprietary information submitted by the petitioner or an in- PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1209 terested party in support of the petitioner concerning the domestic price or cost of production of the like product," in subsection (cX2); and (4) by adding at the end thereof the following new subsections: "(d) SERVICE.—Any party submitting written information, including business proprietary information, to the administering authority or the Commission during a proceeding shall, at the same time, serve the information upon all interested parties who are parties to the proceeding, if the information is covered by a protective order. The administering authority or the Commission shall not accept any such information that is not accompanied by a certificate of service and a copy of the protective order version of the document containing the information. Business proprietary information shall only be served upon interested parties who are parties to the proceeding that are subject to protective order; however, a nonconfidential summary thereof shall be served upon all other interested parties who are parties to the proceeding. "(e) TIMELY SUBMISSIONS.—Information shall be submitted to the administering authority or the Commission during the course of a proceeding on a timely basis and shall be subject to comment by other parties within such resisonable time as the administering authority or the Commission shall provide. If information is submitted without an adequate opportunity for other parties to comment thereon, the administering authority or the Commission may return the information to the party submitting it and not consider it.". SEC. 1333. CORRECTION OF MINISTERIAL ERRORS. (a) FINAL DETERMINATIONS.—Sections 705 and 735 (19 U.S.C. 1671d and 1673d) are each amended by adding at the end thereof the following new subsection: "(e) CORRECTION OF MINISTERIAL ERRORS.—The administering authority shall establish procedures for the correction of ministerial errors in final determinations within a reasonable time after the determinations are issued under this section. Such procedures shall ensure opportunity for interested parties to present their views regarding any such errors. As used in this subsection, the term 'ministerial error' includes errors in addition, subtraction, or other arithmetic function, clerical errors resulting from inaccurate copying, duplication, or the like, and any other type of unintentionsd error which the administering authority considers ministerial.". (b) ADMINISTRATIVE REVIEW.—Section 751 (19 U.S.C. 1675) is amended by adding at the end thereof the following new subsection: "(f) CORRECTION OF MINISTERIAL ERRORS.—The administering authority shall establish procedures for the correction of ministerial errors in final determinations within a reasonable time after the determinations are issued under this section. Such procedures shall ensure opportunity for interested parties to present their views regarding any such errors. As used in this subsection, the term 'ministerial error' includes errors in addition, subtraction, or other arithmetic function, clerical errors resulting from inaccurate copying, duplication, or the like, and any other type of unintentional error which the administering authority considers ministerial.". SEC. 1334. DRAWBACK TREATMENT. (a) I N GENERAL.—Section 779 (19 U.S.C. 1677h) is amended by striking out "shall be treated as any other customs duties." and inserting "shall not be treated as being regular customs duties.". 102 STAT. 1210 PUBLIC LAW 100-418—AUG. 23, 1988 (b) CONFORMING AMENDMENTS.— (1) The section heading for such section 779 is amended by striking out "DRAWBACKS" and inserting "DRAWBACK TREATMENT". (2) The table of contents for title VH of the Tariff Act of 1930 is amended by striking out "Drawbacks." in the entry for section 779 and inserting "Drawback treatment.". SEC. 1335. GOVERNMENTAL IMPORTATIONS. Section 771 of the Tariff Act of 1930 (19 U.S.C. 1677) (as amended by section 1316(b)) is amended by adding at the end thereof the following new paragraph: "(19) APPUCATION TO GOVERNMENTAL IMPORTATIONS.— "(A) I N GENERAL.—Ebccept as otherwise provided by this paragraph, merchandise imported by, or for the use of, a department or agency of the U n i t ^ States Grovemment (including merchandise provided for under schedule 8 of the Tariff Schedules of the United States) is subject to the imposition of countervailing duties or antidumping duties under this title or section 303. "(B) EXCEPTIONS.—Merchandise imported by, or for the use of, the Department of Defense shall not be subject to the imposition of countervailing or antidumping duties under this title if— "(i) the merchandise is acquired by, or for use of, such Department— "(I) from a country with which such Department had a Memorandum of Understanding which was in effect on January 1, 1988, and has continued to have a comparable agreement (including renewals) or superceding agreements, and "(II) in accordance with terms of the Memorandum of Understanding in effect at the time of importation, or "(ii) the merchandise has no substantial nonmilitary use.". SEC. 1336. STUDIES. (a) STUDY OF MARKET ORIENTATION OF CHINA.—The Secretary of Reports. Commerce, in consultation with the heads of other appropriate Federal s^encies, shall imdertake a study regarding the new market orientation of the People's Republic of China. The study shall address, but not be limited to— (1) the effect of the new orientation on Chinese market policies and price structure, and the relationship between domestic Chinese prices and world prices; (2) the extent to which United States trade law practices can accommodate the increased market orientation of the Chinese economy; and (3) the possible need for changes in United States antidumping laws as they apply to foreign countries, such as China, which are in transition to a more market-oriented economy. The Secretary of Ck)mmerce shall submit to the (Dongress within 1 year after the date of the enactment of this Act a report on the study required under this subsection. (b) SUBSIDIES (DODE COMMITMENTS.—Within 90 da3rs after the date of the enactment of this Act, the United States Trade Representa- PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1211 tive shall initiate a review of all bilateral subsidy commitments that have been entered into by foreign governments with the United States. The review shall include— (1) an evaluation of the extent to which the commitments have been complied with; (2) with respect to those commitments found under paragraph (1) not to have been complied with, an estimate regarding when compliance is likely; and (3) recommendations regarding how compliance can be improved. The United States Trade Representative shall complete the review required under this subsection and submit a report thereon to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate within 180 days after the date of the enactment of this Act. SEC. 1337. EFFECTIVE DATES. (a) IN GENERAL.—Except as otherwise provided in this section, the amendments made by this part shall take effect on the date of enactment of this Act. (b) INVESTIGATIONS AND REVIEWS AFTER ENACTMENT.—The amendments made by sections 1312, 1315, 1316, 1318, 1325, 1326, 1327, 1328,1329,1331, and 1332 shall only apply with respect to— (1) investigations initiated after the date of enactment of this Act, and (2) reviews initiated under section 736(c) or 751 of the Tariff Act of 1930 after the date of enactment of this Act. (c) INVESTIGATIONS AFTER ENACTMENT.—The amendments made by sections 1324 and 1330 shall only apply with respect to investigations initiated after the date of enactment of this Act. Reports. 19 u s e 1671 note. (d) PREVENTION OF CIRCUMVENTION OF DUTIES; DRAWBACK.—The provisions of section 781 of the Tariff Act of 1930, as added by section 1321(a), and the amendments made by section 1334 shall apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after the date of enactment of this Act. (e) GOVERNMENTAL IMPORTATIONS; STEEL.—The amendments made by sections 1321(b) and 1335 shall apply with respect to entries, and withdrawals from warehouse for consumption, that are liquidated on or after the date of enactment of this Act. (f) FICTITIOUS MARKETS.—The amendment made by section 1319 shall only apply with respect to— (1) reviews initiated under section 736(c) or 751 of the Tariff Act of 1930 after the date of enactment of this Act, and (2) reviews initiated under such sections— (A) which are pending on the date of enactment of this Act, and (B) in which a request for revocation is pending on the date of enactment of this Act. PART 3—PROTECTION OF INTELLECTUAL PROPERTY RIGHTS SEC. 1341. CONGRESSIONAL FINDINGS AND PURPOSES. (a) FINDINGS.—The Congress finds that— Copyrights. Patents and trademarks. 19 u s e 1337 note. 102 STAT. 1212 PUBLIC LAW 100-418—AUG. 23, 1988 (1) United States persons that rely on protection of intellectual property rights are among the most advanced and competitive in the world; and (2) the existing protection under section 337 of the Tariff Act of 1930 against unfair trade practices is cumbersome and costly and has not provided United States owners of intellectual property rights with adequate protection against foreign companies violating such rights. (b) PURPOSE.—^The purpose of this part is to amend section 337 of the Tariff Act of 1930 to make it a more effective remedy for the protection of United States intellectual property rights. SEC 1342. PROTECTION UNDER THE TARIFF ACT OF 1930. (a) IN GENERAL.—Section 337 of the Tariff Act of 1930 (19 U.S.C. 1337) is amended as follows: (1) Subsection (a) is amended to read as follows: "(aXl) Subject to paragraph (2), the following are unlawful, and when found by the Commission to exist shall be dealt with, in addition to any other provision of law, as provided in this section: "(A) UidTair methods of competition and unfair acts in the importation of articles (other than articles provided for in subparagraphs (B), (C), and (D)) into the United States, or in the sale of such articles by the owner, importer, or consignee, the threat or effect of which is— "(i) to destroy or substantially injure an industry in the United States; "(ii) to prevent the establishment of such an industry; or "(iii) to restrain or monopolize trade and commerce in the United States. "(B) The importation into the United States, the sale for importation, or the sale within the United States after importation by the owner, importer, or consignee, of articles that— "(i) infringe a valid and enforceable United States patent or a valid and enforceable United States copyright registered under title 17, United States Code; or "(ii) are made, produced, processed, or mined under, or by means of, a process covered by the claims of a valid and enforceable United States patent. "(C) The importation into the United States, the sale for importation, or the sale within the United States after importation by the owner, importer, or consignee, of articles that infringe a valid and enforceable United States trademark r o istered under the Trademark Act of 1946. "(D) The importation into the United States, the sale for importation, or the sale within the United States sifter importation by the owner, importer, or consignee, of a semiconductor chip product in a manner that constitutes infringement of a mask work registered under chapter 9 of title 17, United States Code. "(2) Subparagraphs (B), ((D), and (D) of paragraph (1) apply only if an industry in the United States, relating to the articles protected by the patent, copyright, trademark, or mask work concerned, exists or is in the process of being established. "(3) For purposes of paragraph (2), an industry in the United States shall be considered to exist if there is in the United States, with respect to the articles protected by the patent, copyright, trademark, or mask work concerned— PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1213 "(A) significant investment in plant and equipment; "(B) significant emplo3rment of labor or capital; or "(C) substantial investment in its exploitation, including engineering, research and development, or licensing. "(4) For the purposes of this section, the phrase 'owner, importer, or consignee' includes any agent of the owner, importer, or consignee.". (2) Subsection (c) is amended by inserting before the period in the first sentence the following: ", except that the Commission may, by issuing a consent order or on the basis of a settlement agreement, terminate any such investigation, in whole or in part, without making such a determination". (3) Subsection (e) is amended— (A) by striking out " I f in the first sentence and inserting "(1) I f ; and (B) by adding at the end thereof the following new paragraphs: "(2) A complainant may petition the Commission for the issuance of an order under this subsection. The Commission shall make a determination with regard to such petition by no later than the 90th day after the date on which the Commission's notice of investigation is published in the Federal Register. The Commission may extend the 90-day period for an additional 60 days in a case it designates as a more complicated case. The Commission shall publish in the Federal Register its reasons why it designated the case as being more complicated. The Commission may require the complainant to post a bond as a prerequisite to the issuance of an order under this subsection. "(3) The Commission may grant preliminary relief under this subsection or subsection (f) to the same extent as preliminary injunctions and temporary restraining orders may be granted under the Federal Rules of Civil Procedure.". (4) Subsection (f) is amended— (A) by striking out "In lieu o f in paragraph (1) and inserting "In addition to, or in lieu of,"; and (B) by striking out "$10,000 or" in paragraph (2) and inserting "$100,000 or twice". (5) Such section is further amended— (A) by redesignating subsections (g), (h), (i), and 0*) as subsections (j), (k), (1), and (m), respectively; and (B) by inserting after subsection (f) the following new subsections: "(gXDIf"(A) a complaint is filed against a person under this section; "(B) the complaint and a notice of investigation are served on the person; "(C) the person fails to respond to the complaint and notice or otherwise fails to appear to answer the complaint and notice; "(D) the person fails to show good cause why the person should not be found in default; and "(E) the complainant seeks relief limited solely to that person; the Commission shall presume the facts alleged in the complaint to be true and shall, upon request, issue an exclusion from entry or a cease and desist order, or both, limited to that person unless, after considering the effect of such exclusion or order upon the public health and welfare, competitive conditions in the United States economy, the production of like or directly competitive articles in Federal Register, publication. 102 STAT. 1214 PUBLIC LAW 100-418—AUG. 23, 1988 the United States, and United States consumers, the Commission finds that such exclusion or order should not be issued. "(2) In addition to the authority of the Commission to issue a general exclusion from entry of articles when a respondent appears to contest an investigation concerning a violation of the provisions of this section, a general exclusion from entry of articles, regardless of the source or importer of the articles, may be issued if— "(A) no person appears to contest an investigation concerning a violation of the provisions of this section, and "(B) such a violation is established by substantial, reliable, and probative evidence. "(h) The Commission may by rule prescribe sanctions for abuse of discovery and abuse of process to the extent authorized by Rule 11 and Rule 37 of the Federal Rules of Civil Procedure, "(i) FORFEITURE.— _ "(1) In addition to taking action under subsection (d), the Commission may issue an order providing that any article imported in violation of the provisions of this section be seized and forfeited to the United States if— "(A) the owner, importer, or consignee of the article previously attempted to import the article into the United States; "(B) the article was previously denied entry into the * United States by reason of an order issued under subsection (d); and "(C) upon such previous denial of entry, the Secretary of the Treasury provided the owner, importer, or consignee of the article written notice of^ "(i) such order, and "(ii) the seizure and forfeiture that would result from any further attempt to import the article into the United States. "(2) The Commission shall notify the Secretary of the Treasury of any order issued under this subsection and, upon receipt of such notice, the Secretary of the Treasury shall enforce such order in accordance with the provisions of this section. "(3) Upon the attempted entry of articles subject to an order issued under this subsection, the Secretary of the Treasury shall immediately notify all ports of entry of the attempted importation and shall identify the persons notified under paragraph (IXC). "(4) The Secretary of the Treasury shall provide— "(A) the written notice described in paragraph (1)(C) to the owner, importer, or consignee of any article that is denied entry into the United States by reason of an order issued under subsection (d); and "(B) a copy of such written notice to the Commission.". (6) Subsection (k) (as redesignated by paragraph (5XB) of this section) is amended— (A) by inserting "(1)" before the first sentence; and (B) by adding at the end the following: "(2) If any person who has previously been found by the Commission to be in violation of this section petitions the Commission for a determination that the petitioner is no longer in violation of this section or for a modification or rescission of an exclusion from entry or order under subsection (d), (e), (f), (g), or (i)— PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1215 "(A) the burden of proof in any proceeding before the Commission regarding such petition shall be on the petitioner; and "(B) relief may be granted by the Commission with respect to such petition— "(i) on the basis of new evidence or evidence that could not have been presented at the prior proceeding, or "(ii) on grounds which would permit relief from a judgment or order under the Federal Rules of Civil Procedure.'. (7) Subsection (1) (as redesignated by paragraph (5XB) of this section) is amended— (A) by striking out "claims of United States letters patent" in the first sentence and inserting "a proceeding involving a patent, copjnright, or mask work under subsection (aXD"; and (B) by striking out "a patent owner" in the second sentence and inserting "an owner of the patent, copyright, or mask work". (8) Such section is further amended by adding at the end the following: "(nXl) Information submitted to the Commission or exchanged Classified among the parties in connection with proceedings under this section information. which is properly designated as confidential pursuant to C!ommission rules may not be disclosed (except under a protective order issued under r^ulations of the Commission which authorizes limited disclosure of such information) to any person (other than a person described in paragraph (2)) without the consent of the person submitting it. "(2) Notwithstanding the prohibition contained in paragraph (1), information referred to in that paragraph may be disclosed t o ^ "(A) an officer or employee of the Commission who is directly concerned with canying out the investigation in connection with which the information is submitted, "(B) an officer or employee of the United States Government who is directly involved in the review under subsection (h), or "(C) an officer or employee of the United States Customs Service who is directly involved in administering an exclusion from entry under this section resulting from the investigation in connection with which the information is submitted.". (b) TECHNICAL AMENDMENTS.—Section 337 (as amended by subsection (a)) is further amended— (1) by amending subsection (b)— (A) by striking out "Department of Health, Education, and Welfare" in paragraph (2) and inserting "Department of Health and Human Services"; and (B) by striking out "Secretary of the Treasunr" in paragraph (3) and inserting "Secretmy of C!ommerce'; (2) by amending subsection (c)— (A) by striking out "or (f)" and inserting "(f), or (g)", and (B) by striking out "and (f)" and inserting "(f), and (g)"; (3) by striking out "or (f)" each place it appears in subsection (j) and inserting "(D, (g), or (i)"; (4) by striking out "(g)" in subsection (k) and inserting "(j)"; and (5) by striking out "or (f)" in subsection (1) and inserting "(f), (g),or(i)". (c) CONFORMING AMENDMENT.—The Act entitled "An Act to limit the importation of products made, produced, processed, or mined 102 STAT. 1216 PUBLIC LAW 100-418—AUG. 23, 1988 under process covered by unexpired valid United States patents, and for other purposes", approved July 2, 1940 (54 Stat. 724, 19 U.S.C. 1337a), is repealed. 19 u s e 1337 "°*®- Teiecommunications Trade Act 19 U ^ 3101 note. 19 use 3101. ((J) EFFECTIVE DATE.— dXA) Subject to subparagraph (B), the amendments made by this section shall take effect on the date of the enactment of this Act. (B) The United States International Trade Commission is not required to apply the provision in section 337(eX2) of the Tariff Act of 1930 (as amended by subsection (aX3) of this section) relating to the posting of bonds until the earlier of— (i) the 90th day after such date of enactment; or (ii) the day on which the Commission issues interim regulations setting forth the procedures relating to such posting. (2) Notwithstanding any provision of section 337 of the Tariff Act of 1930, the United States International Trade Commission may extend, by not more than 90 days, the period within which the Commission is required to make a determination in an investigation conducted under such section 337 if— (A) the Commission would, but for this paragraph, be required to make such determination before the 180th day after the date of enactment of this Act; and (B) the Commission finds that the investigation is complicated. PART 4—TELECOMMUNICATIONS TRADE SEC. 1371. SHORT TITLE. This part may be cited as the "Telecommunications Trade Act of 1988". SEC.1372. FINDINGS AND PURPOSES. (a) FINDINGS.—The Congress finds that— (1) rapid growth in the world market for telecommunications products and services is likely to continue for several decades; (2) the United States can improve prospects for— (A) the growth of— (i) United States exports of telecommunications products and services, and (ii) export-related employment and consumer services in the United States, and (B) the continuance of the technological leadership of the United States, by undertaking a program to achieve an open world market for trade in telecommunications products, services, and investment; (3) most foreign markets for telecommunications products, services, and investment are characterized by extensive government intervention (including restrictive import practices and discriminatory procurement practices) which adversely affect United States exports of telecommunications products and services and United States investment in telecommunications; (4) the open nature of the United States telecommunications market, accruing from the liberalization and restructuring of such market, has contributed, and will continue to contribute, to £in increase in imports of telecommunications products and a PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1217 growing imbalance in competitive opportunities for trade in telecommunications; (5) unless this imbalance is corrected through the achievement of mutually advantageous market opportunities for trade in telecommunications products and services between the United States and foreign countries, the United States should avoid granting continued open access to the telecommunications roducts and services of such foreign countries in the United tates market; and (6) the unique business conditions in the worldwide market for telecommunications products and services caused by the combination of deregulation and divestiture in the United States, which represents a unilateral liberalization of United States trade with the rest of the world, and continuing government intervention in the domestic industries of many other countries create a need to make an exception in the case of telecommunications products and services that should not necessarily be a precedent for legislating specific sectoral priorities in combating the closed markets or unfair foreign trade practices of other countries. (b) PURPOSES.—The purposes of this part are— (1) to foster the economic and technological growth of, and emplojnnent in, the United States telecommunications industry; (2) to secure a high quality telecommunications network for the benefit of the people of the United States; (3) to develop an international consensus in favor of open trade and competition in telecommunications products and services; (4) to ensure that countries which have made commitments to open telecommunications trade fully abide by those commitments; and (5) to achieve a more open world trading system for telecommunications products and services through negotiation and provision of mutually advantageous market opportunities for United Stetes telecommunications exporters £md their subsidiaries in those markets in which barriers exist to free international trade. g SEC. 1373. DEFINITIONS. 19 USC 3102. For purposes of this part— (1) The term "Trade Representetive" means the United Stetes i; Trade Representetive. (2) The term "telecommunications product" means— (A) any paging devices provided for under item 685.65 of such Schedules, and (B) any article classified under any of the following item numbers of such Schedules: 684.57 684.58 684.59 684.65 684.66 684.67 684.80 685.16 685.24 685.25 685.28 685.30 685.31 685.33 685.34 685.39 685.48 688.17 688.41 707.90. SEC. 1374. INVESTIGATION OF FOREIGN TELECOMMUNICATIONS TRADE 19 USC 3103. BARRIERS. (a) IN GENERAL.—The Trade Representetive shall conduct an investigation to identify priority foreign countries. Such investiga- Termination date. 102 STAT. 1218 PUBLIC LAW 100-418—AUG. 23, 1988 tion shall be concluded by no later than the date that is 5 months after the date of enactment of this Act. (b) FACTORS TO B E TAKEN INTO ACCOUNT.—In identifying priority foreign countries under subsection (a), the Trade Representative shall take into account, among other relevant factors— (1) the nature and significance of the acts, policies, and practices that deny mutually advantageous market opportunities to telecommunications products and services of United States firms; (2) the economic benefits (actual and potential) accruing to foreign firms from open access to the United States market; (3) the potential size of the market of a foreign country for telecommunications products and services of United States firms; (4) the potential to increase United States exports of telecommunications products and services, either directly or through the establishment of a beneficial precedent; and (5) measurable progress being made to eliminate the objectionable acts, policies, or practices. (c) REVOCATIONS AND ADDITIONAL IDENTIFICATIONS.— (1) The Trade Representative may at any time, after taking into account the factors described in subsection (b)— (A) revoke the identification of any priority foreign country that was made under this section, or (B) identify any foreign country as a priority foreign country under this section, if information available to the Trade Representative indicates that such action is appropriate. (2) The Trade Representative shall include in the semiannusd report submitted to the Congress under section 309(3) of the Trade Act of 1974 a detailed explanation of the reasons for the revocation under paragraph (1) of this subsection of any identification of any foreign country as a priority foreign country. (d) REPORT TO CONGRESS.—By no later than the date that is 30 days after the date on which the investigation conducted under subsection (a) is completed, the United States Trade Representative shall submit a report on the investigation to the President and to appropriate committees of the Congress. 19 u s e 3104. SEC. 1375. NEGOTIATIONS IN RESPONSE TO INVESTIGATION. (a) I N GENERAL.—Upon— (1) the date that is 30 days after the date on which any foreign country is identified in the investigation conducted under section 1374(a) as a priority foreign country, and President of U.S. (2) the date on which any foreign country is identified under Contracts. section 1374(cXlXB) as a priority foreign country, the President shall enter into negotiations with such priority foreign country for the purpose of entering into a bilateral or multilateral trade agreement under part 1 of subtitle A which meets the specific negotiating objectives established by the President under subsection (b) for such priority foreign country. President of U.S. (b) ESTABUSHMENT OF SPECIFIC NEGOTIATING OBJECTIVES FOR E A C H FOREIGN PRIORITY COUNTRY.— (1) The President shall establish such relevant specific negotiating objectives on a country-by-country basis as are necessary to meet the general negotiating objectives of the United Stated under this section. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1219 (2XA) The President may refine or modify specific negotiating objectives for particular n^otiations in order to respond to circumstances arising during the n^otiating period, including— (i) changed practices by the priority foreign country, (ii) tangible substantive developments in multilateral n^otiations, (iii) changes in competitive positions, technological developments, or (iv) other relevant factors. (B) By no later than the date that is 30 days after the date on which the President makes any modifications or refinements to specific n^otiating objectives under subparagraph (A), the President shall submit to appropriate committees of the Congress a statement describing such modifications or refinements and the reasons for such modifications or refinements. (c) GENERAL NEGOTIATING OBJECTIVES.—The general n^otiating objectives of the United States under this section are— (1) to obtain multilateral or bilateral agreements (or the modification of exibting agreements) that provide mutually advantageous market opportunities for trade in telecommunications products and services between the United States and foreign countries; (2) to correct the imbalances in market opportunities accruing from reductions in barriers to the access of telecommunications products and services of foreign firms to the United States market; and (3) to facilitate the increase in United States exports of telecommimications products and services to a level of exports that reflects the competitiveness of the United States telecommunications industry. (d) SPECIFIC NEGOTIATING OBJECTIVES.—The specific negotiating objectives of the United States under this section r^arding telecommunications products and services are to obtain— (1) national treatment for telecommunications products and services that are provided by United States firms; (2) most-favored-nation treatment for such products and services; (3) nondiscriminatory procurement policies with respect to such products and services and the inclusion under the Agreement on Government Procurement of the procurement (by sale or lease by government-owned or controlled entities) of all telecommunications products and services; (4) the reduction or elimination of customs duties on telecommunications products; (5) the elimination of subsidies, violations of intellectual property rights, and other unfair trade practices that distort international trade in telecommunications products and services; (6) the elimination of investment barriers that restrict the establishment of foreign-owned business entities which market such products and services; (7) assurances that any requirement for the r^istration of telecommunications products, which are to be located on customer premises, for the purposes of— (A) attachment to a telecommunications network in a foreign country, and 3- 102 STAT. 1220 PUBLIC LAW 100-418—AUG. 23, 1988 (B) the marketing of the products in a foreign country, be limited to the certification by the manufacturer that the products meet the standards established by the foreign country for preventing harm to the network or network personnel; (8) transparency of, and open participation in, the standardssetting processes used in foreign countries with respect to telecommunications products; (9) the ability to have telecommunications products, which are to be located on customer premises, approved and registered by type, and, if appropriate, the establishment of procedures between the United States and foreign countries for the mutual recognition of type approvals; (10) access to the basic telecommunications network in foreign countries on reasonable and nondiscriminatory terms and conditions (including nondiscriminatory prices) for the provision of value-added services by United States suppliers; (11) the nondiscriminatory procurement of telecommunications products and services by foreign entities that provide local exchange telecommunications services which are owned, controlled, or, if appropriate, regulated by foreign governments; and (12) monitoring and effective dispute settlement mechanisms to facilitate compliance with matters referred to in the preceding paragraphs of this subsection. President of U.S. 19 u s e 3105. SEC. 1376. ACTIONS TO BE TAKEN IF NO AGREEMENT OBTAINED. (a) I N G E N E R A L . - (1) If the President is unable, before the close of the negotiating period, to enter into an agreement under subtitle A with any priority foreign country identified under section 1374 which achieves the general negotiating objectives described in section 1375(b) as defined by the specific objectives established by the President for that country, the President shall take whatever actions authorized under subsection (b) that are appropriate and most likely to achieve such general negotiating objectives. (2) In taking actions under paragraph (1), the President shall first take those actions which most directly affect trade in telecommunications products and services with the priority foreign country referred to in paragraph (1), unless the President determines that actions against other economic sectors would be more effective in achieving the general negotiating objectives referred to in paragraph (1). (b) ACTIONS AUTHORIZED.— (1) The President is authorized to take any of the following actions under subsection (a) with respect to any priority foreign country: (A) termination, withdrawal, or suspension of any portion of any trade agreement entered into with such country under— (i) the Trade Act of 1974, (ii) section 201 of the Trade Expansion Act of 1962, or (iii) section 350 of the Tariff Act of 1930, with respect to any duty or import restriction imposed by the United States on any telecommunications product; (B) actions described in section 301 of the Trade Act of 1974; ^'fp-W ' ' PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1221 (C) prohibition of purchases by the Federal Grovernment of telecommunications products of such country; (D) increases in domestic preferences under title III of the Act of March 3,1933 (41 U.S.C. 10a, et seq.) for purchases by the Federal Government of telecommunications products of such country; (E) suspension of any waiver of domestic preferences under title III of the Act of March 3,1933 (41 U.S.C. 10a, et seq.) which may have been extended to such country pursuant to the Trade Agreements Act of 1979 with respect to telecommunications products or any other products; (F) issuance of orders to appropriate officers and employees of the Federal Government to deny Federal funds or Federal credits for purchases of the telecommunications products of such country; and (G) suspension, in whole or in part, of benefits accorded articles of such country under title V of the Trade Act of 1974 (19 U.S.C. 2461, et seq.). (2) Notwithstanding section 125 of the Trade Act of 1974 and any other provision of law, if any portion of a trade agreement described in paragraph (IXA) is terminated, withdrawn, or suspended under paragraph (1) with respect to any duty imposed by the United States on the products of a foreign country, the rate of such duty that shall apply to such products entered, or withdrawn from warehouse for consumption, after the date on which such termination, withdrawal, or suspension takes effect shall be a rate determined by the President. (c) NEGOTIATING PERIOD.— (1) For purposes of this section, the term "negotiating period" means— (A) with respect to a priority foreign country identified in the investigation conducted under section 1374(a), the 18month period beginning on the date of the enactment of this Act, and (B) with respect to any foreign country identified as a priority foreign country after the conclusion of such investigation, the 1-year period beginning on the date on which such identification is made. (2XA) The negotiating period with respect to a priority foreign country may be extended for not more than two 1-year periods. (B) By no later than the date that is 15 days after the date on which the President extends the negotiating period with respect to any priority foreign country, the President shall submit to appropriate committees of the Congress a report on the status of negotiations with such country that includes— (i) a finding by the President that substantial progress is being made in negotiations with such country, and (ii) a statement detailing the reasons why an extension of such negotiating period is necessary. (d) MODIFICATION AND TERMINATION AUTHORITY.—The President may modify or terminate any action taken under subsection (a) if, after taking into consideration the factors described in section 13740t)), the President determines that changed circumstances warrant such modification or termination. (e) REPORT.—The President shall promptly inform the appropriate committees of the Congress of any action taken under subsection (a) 102 STAT. 1222 PUBLIC LAW 100-418—AUG. 23, 1988 or of the modification or termination of any such action under subsection (d). 19 u s e 3106. SEC. 1377. REVIEW OF TRADE AGREEMENT IMPLEMENTATION BY TRADE REPRESENTATIVE. (a) I N GENERAL.— (1) In conducting the annual analysis under section 181(a) of the Trade Act of 1974 (19 U.S.C. 2241), the Trade Representative shall review the operation and effectiveness of— (A) each trade agreement negotiated by reason of this part that is in force with respect to the United States; and (B) every other trade agreement regarding telecommunications products or services that is in force with respect to the United States. (2) In each review conducted under paragraph (1), the Trade Representative shall determine whether any act, policy, or practice of the foreign country that has entered into the agreement described in paragraph (1)— (A) is not in compliance with the terms of such agreement, or (B) otherwise denies, within the context of the terms of such agreement, to telecommunications products and services of United States firms mutually advantageous market opportunities in that foreign country. (b) REVIEW FACTORS.— (1) In conducting reviews under subsection (a), the Trade Representative shall consider any evidence of actual patterns of trade (including United States exports to a foreign country of telecommunications products and services, including sales and services related to those products) that do not reflect patterns of trade which would reasonably be anticipated to flow from the concessions or commitments of such country based on the international competitive position and export potential of such products and services. (2) The Trade Representative shall consult with the United States International Trade Commission with regard to the actual patterns of trade described in paragraph (1). (c) ACTION IN RESPONSE TO AFFIRMATIVE DETERMINATION.— (1) Any affirmative determination made by the Trade Representative under subsection (aX2) with respect to any act, policy, or practice of a foreign country shall, for purposes of chapter 1 of title III of the Trade Act of 1974, be treated as an affirmative determination under section 304(aXlXA) of such Act that such act, policy, or practice violates a trade agreement. (2) In taking actions under section 301 by reason of paragraph (1), the Trade Representative shall first take those actions which most directly affect trade in telecommunications products and services with the priority foreign country referred to in paragraph (1), unless the Trade Representative determines that actions against other economic sectors would be more effective in achieving compliance by the foreign country with the trade agreement that is the subject of the affirmative determination made under subsection (aX2). 19 u s e 3107. SEC. 1378. COMPENSATION AUTHORITY. If— PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1223 (1) the President has taken action under section 1376(a) with respect to any foreign country, and (2) such action is found to be inconsistent with the international obligations of the United States, including the General Agreement on Tariffs and Trade, the President may enter into trade agreements with such foreign country for the purpose of granting new concessions as compensation for such action in order to maintain the general level of reciprocal and mutually advantageous concessions. SEC. 1379. CONSULTATIONS. (a) ADVICE FROM DEPARTMENTS AND AGENCIES.—Prior to taking President of U.S. any action under this part, the President shall seek information and 19 u s e 3108. advice from the interagency trade organization established under section 242(a) of the Trade Expansion Act of 1962 (19 U.S.C. 1872). (b) ADVICE FROM THE PRIVATE SECTOR.—Before— (1) the Trade Representative concludes the investigation conducted under section 1374(a) or takes action under section 1374(c), (2) the President establishes specific n^otiating objectives under section 1375(b) with respect to any foreign country, or (3) the President takes action under section 1376, the Trade Representative shall provide an opportunity for the presentation of views by any interested party with respect to such investigation, objectives, or action, including appropriate committees established pursuant to section 135 of the Trade Act of 1974 (19 U.S.C. 2155). (c) (IJONSULTATIONS WITH CONGRESS AND OFFICIAL ADVISORS.—For purposes of conducting negotiations under section 1375(a), the Trade Representative shall keep appropriate committees of the Congress, as well as appropriate committees established pursuant to section 135 of the Trade Act of 1974, currently informed with respect to— (1) the negotiating priorities and objectives for each priority foreign country; (2) the assessment of negotiating prospects, both bilateral and multilateral; and (3) any United States concessions which might be included in negotiations to achieve the objectives described in subsections (c) and (d) of section 1375. (d) MODIFICATION OF SPECIFIC NEGOTIATING OBJECTIVES.—Before President of U.S the President takes any action under section 1375(bX2XA) to refine or modify specific negotiating objectives, the President shall consult with the C!ongress and with members of the industry, and representatives of labor, affected by the proposed refinement or modification. SEC. 1380. SUBMISSION OF DATA; ACTION TO ENSURE COMPLIANCE. (a) SUBMISSION OF DATA.—The Federal Communications Commission (hereafter in this section referred to as the "Commission") shall periodically submit to appropriate committees of the House of Representatives and of the Senate any data collected and otherwise made public under Report No. DC-1105, "Information Reporting Requirements Established for Common Carriers", adopted February 25, 1988, relating to FCC Docket No. 86-494, adopted December 23,1987. (b) ACTION TO ENSURE COMPLIANCE.— 19 USC 3109. 102 STAT. 1224 Reports. Public information. 19 u s e 3110. PUBLIC LAW 100-418—AUG. 23, 1988 (IXA) Any product of a foreign country that is subject to registration or approval by the Commission may be entered only if— (i) such product conforms with all applicable rules and regulations of the Commission, and (ii) the information which is required on Federal Communications Commission Form 740 on the date of enactment of this Act is provided to the appropriate customs officer at the time of such entry in such form and manner as the Secretary of the Treasury may prescribe. (B) For purposes of this paragraph, the term "entered" means entered, or withdrawn from warehouse for consumption, in the customs territory of the United States. (2) The Commission, the Secretary of Commerce, and the Trade Representative shall provide such assistance in the enforcement of paragraph (1) as the Secretary of the Treasury may request. (3) The Secretary of the Treasury shall compile the information collected under paragraph (IXAXii) into a summary and shall annually submit such summary to the Congress until the authority to negotiate trade agreements under part 1 of subtitle A expires. Such information shall also be made available to the public. SEC. 1381. STUDY ON TELECOMMUNICATIONS COMPETITIVENESS IN THE UNITED STATES. (a) I N GENERAL.—The Secretary of Commerce, in consultation with the Federal Communications Commission and the United States Trade Representative, shall conduct a study of the competitiveness of the United States telecommunications industry and the effects of foreign telecommunications policies and practices on such industry in order to assist the Congress and the President in determining what actions might be necessary to preserve the competitiveness of the United States telecommunications industry. (b) PuBuc COMMENT.—The Secretary of Commerce may, as appropriate, provide notice and reasonable opportunity for public comment as part of the study conducted under subsection (a). (c) REPORT.—The Secretary of Commerce shall, by no later than the date that is 1 year after the date of enactment of this Act, submit to the Congress and the President a report on the findings and recommendations reached by the Secretary of Commerce as a result of the study conducted under subsection (a). Such report shall be referred to the appropriate committees of the House of Representatives and of the Senate. 19 u s e 3111. SEC. 1382. INTERNATIONAL OBLIGATIONS. Nothing in this part may be construed to require actions inconsistent with the international obligations of the United States, including the General Agreement on Tariffs and Trade. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1225 Subtitle D—Adjustment to Import Competition PART 1—POSITIVE ADJUSTMENT BY INDUSTRIES INJURED BY IMPORTS SEC. 1401. POSITIVE ADJUSTMENT BY INDUSTRIES INJURED BY IMPORTS. (a) IN GENERAL.—Chapter 1 of title II of the Trade Act of 1974 (19 U.S.C. 2251-2253) is amended to read as follows: "CHAPTER 1—POSITIVE ADJUSTMENT BY INDUSTRIES INJURED BY IMPORTS "SEC. 201. ACTION TO FACILITATE POSITIVE ADJUSTMENT TO IMPORT 19 USC 2251. COMPETITION. "(a) PRESIDENTIAL ACTION.—If the United States International Trade Commission (hereinafter referred to in this chapter as the 'Commission') determines under section 202(b) that an article is being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry producing an article like or directly competitive with the imported article, the President, in accordance with this chapter, shall take all appropriate and feasible action within his power which the President determines will facilitate efforts by the domestic industry to make a positive adjustment to import competition and provide greater economic and social benefits than costs. "(b) POSITIVE ADJUSTMENT TO IMPORT COMPETITION.— "(1) For purposes of this chapter, a positive adjustment to import competition occurs when— "(A) the domestic industry— "(i) is able to compete successfully with imports after actions taken under section 204 terminate, or "(ii) the domestic industry experiences an orderly transfer of resources to other productive pursuits; and "(B) dislocated workers in the industry experience an orderly transition to productive pursuits. "(2) The domestic industry may be considered to have made a positive adjustment to import competition even though the industry is not of the same size and composition as the industry at the time the investigation was initiated under section 202(b). "SEC. 202. INVESTIGATIONS, DETERMINATIONS, TIONS BY COMMISSION. AND RECOMMENDA- 19 USC 2252. "(a) PETITIONS AND ADJUSTMENT PLANS.— "(1) A petition requesting action under this chapter for the purpose of facilitating positive adjustment to import competition may be filed with the Commission by an entity, including a trade association, firm, certified or recognized union, or group of workers, which is representative of an industry. "(2) A petition under pa,ragraph (1)— "(A) shall include a statement describing the specific purposes for which action is being sought, which may include facilitating the orderly transfer of resources to more productive pursuits, enhancing competitiveness, or other means of adjustment to new conditions of competition; and 102 STAT. 1226 Federal Register, publication. PUBLIC LAW 100-418—AUG. 23, 1988 "(B) may— "(i) subject to subsection (dXlXCXi), request provisional relief under subsection (dXD; or "(ii) request, or at any time before the 150th day after the date of filing be amended to request, provisional relief under subsection (dX2). "(3) Whenever a petition is filed under paragraph (1), the Commission shall promptly transmit copies of the petition to the Office of the United States Trade Representative and other Federal agencies directly concerned. "(4) A petitioner under paragraph (1) may submit to the Commission and the United States Trade Representative (hereafter in this chapter referred to as the 'Trade Representative'), either with the petition, or at any time within 120 days after the date of filing of the petition, a plan to facilitate positive adjustment to import competition. "(5XA) Before submitting an adjustment plan under paragraph (4), the petitioner and other entities referred to in paragraph (1) that wish to participate may consult with the Trade Representative and the officers and employees of any Federal agency that is considered appropriate by the Trade Representative, for purposes of evaluating the adequacy of the proposals being considered for inclusion in the plan in relation to specific actions that may be taken under this chapter. "(B) A request for any consultation under subpars^aph (A) must be made to the Trade Representative. Upon receiving such ^ request, the Trade Representative shall confer with the petitioner and provide such assistance, including publication of appropriate notice in the Federal Register, as may be practicable in obtaining other participants in the consultation. No consultation may occur under subparagraph (A) unless the Trade Representative, or his del^ate, is in attendance. "(6XA) In the course of any investigation under subsection (b), the (Jonunission shall seek information (on a confidential basis, to the extent appropriate) on actions being taken, or planned* to be taken, or both, by firms and workers in the industry to make a positive adjustment to import competition. "(B) Regardless whether an adjustment plan is submitted under paragraph (4) by the petitioner, if the Commission makes an affirmative determination under subsection (b), any— "(i) firm in the domestic industry; "(ii) certified or recc^nized union or group of workers in the domestic industry; "(iii) State or local community; "(iv) trade association representing the domestic industry; or "(v) any other person or group of persons, may, individually, submit to the (Dommission commitments regarding actions such persons and entities intend to take to facilitate positive adjustment to import competition. "(7) Nothing in paragraphs (5) and (6) may be construed to provide immunity luider the antitrust laws. "(b) INVESTIGATIONS AND DETERMINATIONS BY (IIOMMISSIGN.— "(IXA) Upon the filing of a petition under subsection (b), the request of the President or the Trade Representative, the resolution of either the Committee on Ways and Means of the House of Representatives or the dlommittee on Finance of the Senate, PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1227 or on its own motion, the Commission shall promptly make an investigation to determine whether an article is being imported into the United States in such incre£ised quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry producing an article like or directly competitive with the imported article. "(B) For purposes of this section, the term 'substantial cause' means a cause which is important and not less than any other cause. "(2XA) Except £is provided in subparagraph (B), the Commission shall make the determination under paragraph (1) within 120 days after the date on which the petition is filed, the request or resolution is received, or the motion is adopted, as the case maybe. "(B) If before the 100th day after a petition is filed under subsection (aXD the Commission determines that the investigation is extraordinarily complicated, the Commission shall make the determination under paragraph (1) within 150 days after the date referred to in subparagraph (A). "(3XA) If the Commission makes an affirmative determination under paragraph (1) and the petitioner alleges the existence of critical circumstances, the Commission shall make a determination regarding such allegation— "(i) on or before the 120th day after the day on which the petition was filed, if such allegation was included in the petition on or before the 90th day after such filing date; or "(ii) on or before the date the report required under subsection (f) regarding the determination is submitted to the President, if such allegation was included in the petition after the 90th day, and on or before the 150th day, after such filing date. "(B) For purposes of this paragraph and subsection (dX2), critical circumstances exist if a substantial increase in imports (either actual or relative to domestic production) over a relatively short period of time has led to circumstances in which a delay in taking action under this chapter would cause harm that would significantly impair the effectiveness of such action. "(4) In the course of any proceeding under this subsection, the Commission shall, after reasonable notice, hold public hearings and shall grfford interested parties and consumers an opportunity to be present, to present evidence, to comment on the adjustment plan, if any, submitted under subsection (a), and to be heard at such hearings. '(c) FACTORS APPUED IN MAKING DETERMINATIONS.— "(1) In making determinations under subsection (b), the Commission shall take into account all economic factors which it considers relevant, including 0)ut not limited to)— "(A) with respect to serious injury— "(i) the significant idling of productive facilities in the domestic industry, "(ii) the inability of a significant number of firms to carry out domestic production operations at a reasonable level of profit, and "(iii) significant unemplo3rment or underemplojmient within the domestic industry; "(B) with respect to threat of serious injury— Employment and unemplojntnent. 102 STAT. 1228 Wages. PUBLIC LAW 100-418—AUG. 23, 1988 "(i) a decline in sales or market share, a higher and growing inventory (whether maintained by domestic producers, importers, wholesalers, or retailers), and a downward trend in production, profits, wages, or employment (or increasing underemplojmient) in the domestic industry, "(ii) the extent to which firms in the domestic industry are unable to generate adequate capital to finance the modernization of their domestic plants and equipment, or are unable to maintain existing levels of expenditures for research and development, '(iii) the extent to which the United States market is the focal point for the diversion of exports of the article concerned by reason of restraints on exports of such article to, or on imports of such article into, third V. country markets; and "(C) with respect to substantial cause, an increase in imports (either actual or relative to domestic production) and a decline in the proportion of the domestic market supplied by domestic producers. "(2) In making determinations under subsection (b), the Commission shall— "(A) consider the condition of the domestic industry over the course of the relevant business cycle, but may not aggregate the causes of declining demand associated with a recession or economic downturn in the United States economy into a single cause of serious injury or threat of injury; and "(B) examine factors other than imports which may be a cause of serious injury, or threat of serious injury, to the domestic industry. The Commission shall include the results of its examination under subparagraph (B) in the report submitted by the Commission to the President under subsection (e). "(3) The presence or absence of any factor which the (Ilommission is required to evaluate in subparagraphs (A) and (B) of paragraph (1) is not necessarily dispositive of whether an article is being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry. "(4) For purposes of subsection (b), in determining the domestic industry producing an article like or directly competitive with an imported article, the C!ommission— "(A) to the extent information is available, shall, in the case of a domestic producer which also imports, treat as part of such domestic industry only its domestic production; "(B) may, in the case of a domestic producer which produces more than one article, treat as part of such domestic industry only that portion or subdivision of the producer which produces the like or directly competitive article; and "(C) may, in the case of one or more domestic producers which produce a like or directly competitive article in a major geographic area of the United States and whose production facilities in such area for such article constitute a substantial portion of the domestic industry in the United States and primarily serve the market in such area, and where the imports are concentrated in such area, treat as PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1229 such domestic industry only that s^ment of the production located in such area. "(5) In the course of any proceeding under this subsection, the Commission shall investigate any factor which in its judgment may be contributing to increased imports of the article under investigation. Whenever in the course of its investigation the Commission has reason to believe that the increased imports are attributable in part to circumstances which come within the purview of subtitles A and B of title VH or section 337 of the Tariff Act of 1930, or other remedial provisions of law, the Commission shall promptly notify the appropriate agency so that such action may be taken as is otherwise authorized by such provisions of law. "(6) For purposes of this subsection: "(A) The term 'domestic industry* includes producers located in the United States insular possession. "(B) The term 'significant idling of productive facilities' includes the closing of plants or the imderutilization of production capacity. *(d) PROVISIONAL RrajEF.— "(IXA) An entity representing a domestic industry that produces a perishable agricultural product that is like or directly competitive with an imported perishable agricultural product may file a request with the Trade Representative for the monitoring of imports of that product under subparagraph (B). Within 21 days after receiving the request, the Trade Representative shall determine if— "(i) the imported product is a perishable agricultural product; and "(ii) there is a reasonable indication that such product is being imported into the United States in such increased qusmtities as to be, or likely to be, a substantial cause of serious injury, or the threat thereof, to such domestic industry. "(B) If the determinations under subparagraph (A) (i) and (ii) are affirmative, the Trade Representative shall request, under section 332(g) of the Tariff Act of 1930, the Commission to monitor and investigate the imports concerned for a period not to exceed 2 years. The monitoring and investigation may include the collection and analjrsis of information that would expedite an investigation under subsection (b). XQ If a petition filed under subsection (a)— "(i) alleges injury from imports of a perishable agricultural product that has been, on the date the allegation is included in the petition, subject to monitoring by the Commission under paragraph (2) for not less than 90 daj^; and "(ii) requests that provisional relief be provided imder this subsection with respect to such imports; the Conmdssion shall, not later than the 21st day after the day on which the request was filed, make a determination, on the basis of available information, whether increased imports (either actual or relative to domestic production) of the perishable agricultural product are a substantial cause of serious injury, or the threat thereof, to the domestic industry producing a like or directly competitive perishable product, and whether either— 19-194 0-91—Part 2 8 : QL J Agriculture and agricultural commodities. 102 STAT. 1230 Reports. President of U.S. Reports. President of U.S. President of U.S. PUBLIC LAW 100-418—AUG. 23, 1988 "(I) the serious injury is likely to be difficult to repair by reason of perishability of the like or directly competitive agricultural product; or "OD the serious injury cannot be timely prevented through investigation under subsection (b) and action under section 203. "(D) At the request of the Commission, the Secretary of Agriculture shall promptly provide to the Commission any relevant information that the Department of Agriculture may have for purposes of making determinations and findings under this subsection. "(E) Whenever the (Commission makes an affirmative preliminary determination under subparagraph (C), the (Commission shall find the amount or extent of provisional relief that is necessary to prevent or remedy the serious injury or threat thereof. In carrying out this subparagraph, the (Commission shall give preference to increasing or imposing a duty on imports, if such form of relief is feasible and would prevent or remedy the serious injury or threat thereof. "(F) The Commission shall immediately report to the President its determination under subparagraph (C) and, if the determination is affirmative, the finding under subparagraph (E). "(G) Within 7 days after receiving a report from the (Commission under subparagraph (F) containing an affirmative determination, the President, if he considers provisional relief to be warranted and after taking into account the finding of the (Commission under subparagraph (E), shall proclaim such provisional relief that the President considers necessary to prevent or remedy the serious injury or threat thereof. "(2XA) The Commission shall, at the same time it makes an affirmative determination under subsection (bX3XA) r ^ a r d i n g the existence of critical circumstances, find the amount or extent of provisioned relief that is appropriate to address such critical circimistances. The (Commission shall immediately report to the President each such affirmative determination and finding. "(B) After receiving a report from the Commission under subparagraph (A), the President shall, within 7 days after the day on which the report is received and after taking into account the finding of the (Commission luider subparagraph (A), proclaim such provisional relief, if any, that the President considers appropriate to address the critical circumstances. "(3) If provisional relief is proclaimed under paragraph (IXG) or (2)(B) in the form of an increase, or the imposition of, a duty, the President shall order the suspension of liquidation of sdl imported articles subject to the affirmative determination under paragraph (IXC) or subsection (bXD, as the case may be, that are entered, or withdrawn from warehouse for consumption, on or after the date of the determination. "(4XA) Any provisional relief implemented under this subsection with respect to an imported article shall terminate on the day on which— "(i) if such relief was proclaimed under paragraph dXG), the (Commission makes a n ^ a t i v e determination under section 203(a) regarding injury or the threat thereof by imports of such article; PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1231 "(ii) action described in section 203(aX3) (A) or (C) takes effect under section 203 with respect to such article; "(iii) a decision by the President not to take any action under section 203(a) with respect to such article becomes final; or "(iv) whenever the President determines that, because of changed circumstances, such relief is no longer warranted. "(B) Any suspension of liquidation ordered under paragraph (3) with respect to an imported article shall terminate on the day on which provisional relief is terminated under subparagraph (A) with respect to the article. "(C) If an increase in, or the imposition of, a duty that is proclaimed under section 203 on an imported article is different from a duty increase or imposition that was proclsdmed for such an article under this section, then the entry of any such article for which liquidation was suspended under paragraph (3) shall be liquidated at whichever of such rates of duty is lower. "(D) If provisional relief in the form of an increase in, or the imposition of, a duty is proclaimed under this section with respect to an imported article and neither a duty increase nor a duty imposition is proclaimed under section 203 regarding such article, the entry of any such article for which liquidation was suspended under paragraph (3) may be liquidated at the rate of duty that applied before provisional relief was provided. "(5) For purposes of this subsection: "(A) A perishable agricultural product is any agricultural article, including livestock, regarding which the Trade Representative considers action under this section to be appropriate after taking into account— "(i) whether the article has— "(I) a short shelf life, "(II) a short growing season, or "(III) a short marketing period, "(ii) whether the article is treated as a perishable product under any other Federal law or regulation; and "(iii) any other factor considered appropriate by the Trade Representative. The presence or absence of any factor which the Trade Representative is required to take into account under clause (i), (ii), or (iii) is not necessarily dispositive of whether an article is a perishable agricultural product. "(B) The term 'provisional relief means— "(i) any increase in, or imposition of, any duty; "(ii) any modification or imposition of any quantitative restriction on the importation of an article into the United States; or "(iii) any combination of actions under clauses (i) and (ii). '(e) COMMISSION RECOMMENDATIONS.— "(1) If the Commission makes an affirmative determination under subsection Ot>Xl), the Commission shall also recommend the action that would address the serious injury, or threat thereof, to the domestic industry and be most effective in facilitating the efforts of the domestic industry to make a positive adjustment to import competition. "(2) The Commission is authorized to recommend under paragraph (1)— 102 STAT. 1232 PUBLIC LAW 100-418—AUG. 23, 1988 "(A) an increase in, or the imposition of, any duty on the imported article; (B) a tariff-rate quota on the article; "(C) a modification or imposition of any quantitative restriction on the importation of the article into the United States; "(D) one or more appropriate adjustment measures, including the provision of trade adjustment assistance under chapter 2; or "(E) any combination of the actions described in subparagraphs (A) through (D). "(3) The Commission shall specify the type, amount, and duration of the action recommended by it under paragraph (1). • The limitations set forth in section 203(e) are applicable to the action recommended by the Commission. "(4) In addition to the recommendation made under paragraph (1), the Commission may also recommend that the President— "(A) initiate international negotiations to address the underlying cause of the increase in imports of the article or otherwise to alleviate the injury or threat; or "(B) implement any other action authorized under law that is likely to facilitate positive adjustment to import competition. "(5) For purposes of making its recommendation under this subsection, the Commission shall— "(A) after reasonable notice, hold a public hearing at which all interested parties shall be provided an opportunity to present testimony and evidence; and "(B) take into account— "(i) the form and amount of action described in paragraph (2) (A), (B), and (C) that would prevent or remedy the injury of threat thereof, "(ii) the objectives and actions specified in the adjustment plan, if any, submitted under subsection (aX4), "(iii) any individusd commitment that was submitted to the Commission under subsection (aX6), "(iv) any information available to the Commission concerning the conditions of competition in domestic and world markets, and likely developments affecting such conditions during the period for which action is being requested, and "(v) whether international negotiations may be constructive to address the injury or threat thereof or to facilitate adjustment. "(6) Only those inembers of the Commission who agreed to the affirmative determination under subsection (b) are eligible to vote on the recommendation required to be made under paragraph (1) or that may be made under paragraph (3). Members of the Commission who did not agree to the affirmative determination may submit, in the report required under subsection (f), separate views regarding what action, if any, should be taken under section 203. "(f) REPORT BY (DOMMISSION.— "(1) The Commission shall submit to the President a report on each investigation undertaken under subsection (b). The report shall be submitted at the earliest practicable time, but not later PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1233 than 180 days after the date on which the petition is filed, the request or resolution is received, or the motion is adopted, as the case may be. "(2) The Commission shall include in the report required under paragraph (1) the following: "(A) The determination made under subsection (b) and an explanation of the basis for the determination. "(B) If the determination under subsection Ot)) is affirmative, the recommendations for action made under subsection (e) and an explanation of the basis for each recommendation. "(C) Any dissenting or separate views by members of the Commission regarding the determination and any recommendation referred to in subparagraphs (A) and (B). "(D) The findings required to be included in the report under subsection (cX2). "(E) A copy of the adjustment plan, if any, submitted under section 201(bX4). "(F) Commitments submitted, and information obtained, by the Commission regarding steps that firms and workers in the domestic industry are taking, or plan to take, to facilitate positive adjustment to import competition. "(G) A description of— "(i) the short- and long-term effects that implementation of the action recommended under subection (e) is likely to have on the petitioning domestic industry, on other domestic industries, and on consumers, and "(ii) the short- and long-term effects of not taking the recommended action on the petitioning domestic industry, its workers and the conununities where production facilities of such industry is located, and on other domestic industries. "(3) The Commission, after submitting a report to the President under paragraph (1), shall promptly make it available to the public (with the exception of the confidential information obtained under section 202(aX6)(B) and any other information which the dlommission determines to be confidential) and cause a sunmiary thereof to be published in the Federal Roister. "(g) EXPEDITED CONSIDERATION OP ADJUSTMENT ASSISTANCE PETI- noNS.—If the C>)mmission makes an affirmative determination under subsection (bXD, the Ck>mmission shall promptly notify the Secretary of Labor and the Secretary of Commerce of the determination. After receiving such notification— "(1) the Secretary of Labor shall give expedited consideration to petitions by workers in the domestic industry for certification for eligibility to apply for adjustment assistance under chapter 2; and "(2) the Secretary of Commerce shall give expedited consideration to petitions by firms in the domestic industry for certification of eligibility to apply for adjustment assistance under chapter 3. "(h) LJMITATIONS ON INVESTIGATIONS.— "(1) Except for good cause determined by the Commission to exist, no investigation for the purposes of this section shall be made with respect to the same subject matter as a previous investigation under this chapter, unless 1 year has elapsed since Public information. Federal Register, publication. 102 STAT. 1234 PUBLIC LAW 100-418—AUG. 23, 1988 the Commission made its report to the President of the results of such previous investigation. "(2) If an article was the subject of an investigation under this section that resulted in any action described in section 203(aX3) (A), (B), (C), or (E) being taken under section 203, no other investigation under this chapter may be initiated with respect to such article while such action is in effect or during the period beginning on the date on which such action terminates that is equal in duration to the period during which such action w£is in effect. 19 u s e 2253. "SEC. 203. ACTION BY PRESIDENT AFTER DETERMINATION OF IMPORT INJURY. "(a) I N GENERAL.— "(1)(A) After receiving a report under section 202(f) containing an affirmative finding regarding serious injury, or the threat thereof, to a domestic industry, the President shall take all appropriate and feasible action within his power which the President determines will facilitate efforts by the domestic industry to make a positive adjustment to import competition and provide greater economic and social benefits than costs. "(B) The action taken by the President under subparagraph (A) shall be to such extent, and for such duration, subject to subsection (eXl), that the President determines to be appropriate and feeisible under such subparagraph. "(C) The interagency trade organization established under section 242(a) of the Trade Expansion Act of 1962 shall, with respect to each affirmative determination reported under section 202(f), make a recommendation to the President as to what action the President should take under subparagraph (A). "(2) In determining what action to take under paragraph (1), the President shall take into account— "(A) the recommendation and report of the Commission; "(B) the extent to which workers and firms in the domestic industry are— "(i) benefitting from adjustment assistance and other manpower programs, and "(ii) engaged in worker retraining efforts; "(C) the efforts being made, or to be implemented, by the domestic industry (including the efforts included in any adjustment plan or commitment submitted to the Commission under section 201(b)) to make a positive adjustment to import competition; "(D) the probable effectiveness of the actions authorized under paragraph (3) to facilitate positive adjustment to import competition; "(E) the short- and long-term economic and social costs of the actions authorized under paragraph (3) relative to their short- and long-term economic and social benefits and other considerations relative to the position of the domestic industry in the United States economy; "(F) other factors related to the national economic interest of the United States, including, but not limited to— "(i) the economic and social costs which would be incurred by taxpayers, communities, and workers if import relief were not provided under this chapter. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1235 "(ii) the effect of the implementation of actions under this section on consumers and on competition in domes7tic markets for articles, and "(iii) the impact on United States industries and firms as a result of international obligations regarding compensation; "(G) the extent to which there is diversion of foreign exports to the United States market by reason of foreign restraints; "(H) the potential for circumvention of any action taken under this section; "(I) the national security interests of the United States; Defense and Qjl^ national "(J) the factors required to be considered by the Commis- ^^<^"^^*y sion under section 202(e)(5). "(3) The President may, for purposes of taking action under paragraph (1)— "(A) proclaim an increase in, or the imposition of, any duty on the imported article; "(B) proclaim a tariff-rate quota on the article; "(C) proclaim a modification or imposition of any quantitative restriction on the importation of the article into the United States; "(D) implement one or more appropriate adjustment measures, including the provision of trade adjustment assistance under chapter 2; "(E) negotiate, conclude, and carry out orderly marketing agreements with foreign countries limiting the export from foreign countries and the import into the United States of such article; "(F) proclaim procedures necessary to allocate among importers by the auction of import licenses quantities of the article that are permitted to be imported into the United States; "(G) initiate international negotiations to address the underlying cause of the increase in imports of the article or otherwise to alleviate the injury or threat thereof; "(H) submit to Congress legislative proposals to facilitate the efforts of the domestic industry to make a positive adjustment to import competition; '(I) take any other action which may be taken by the President under the authority of law and which the President considers appropriate and feasible for purposes of paragraph (1); and "(J) take any combination of actions listed in subparagraphs (A) through (I). "(4) The President shall take action under paragraph (1) within 60 days after receiving a report from the Commission containing an affirmative determination under section 202(bXl) (or a determination under such section which he considers to be an affirmative determination by reason of section 830(d) of the Tariff Act of 1930); except that if a supplemental report is requested under paragraph (5), the President shall take action under paragraph (1) within 30 days after the supplemental report is received. '(5) The President may, within 15 days after the date on which he receives a report from the Commission containing an 102 STAT. 1236 Reports. PUBLIC LAW 100-418—AUG. 23, 1988 affirmative determination under section 202(bXl), request addi^ tional information from the Commission. The Commissicm shall» as soon as practicable but in no event more than 30 days after the date on which it receives the President's request, furnish additional information with respect to the industry in a supplemental report. "0)) REPORTS TO CONGRESS.— "(1) On the day the President takes action under subsection (aXl), the President shall transmit to Congress a document desa-ibing the action and the reasons for taking the action. If the action taken by the President differs from the action required to be recommended by the Conmiission under section 202(eXl), the President shall state in detail the reasons for the difference. "(2) On the day on which the President decides that there is no appropriate and feasible action to take under subsection (aXD with respect to a domestic industry, the President shall transmit to Coi^ress a document that sets forth in detail the reasons for the decision. "(3) On the day on which the President takes any action under subsection (aXl) that is not reported under paragraph (1), the President shall transmit to Congress a document setting forth the action being taken and the reasons therefor. "(c) IMPLEMENTATION OP ACTION RECOMMENDED BY COMBOSSION.— Effective date. If the President reports under subsection Ot>Xl) or (2) that— "(1) the action taken under subsection (aXD differs from the action recommended by the Commission under section 202(eXl); or "(2) no action will be taken under subsection (aXD with respect to the domestic industry; the action reconmiended by the Commission shall take effect (as provided in subsection (cX2)) upon the enactment of a joint resolution described in section 152(aXlXA) within the 90-day period beginning on the date on which the document referred to in subsection (bXl) or (2) is transmitted to the Coi^ress. "(d) TDUE FOR TAKING EFFECT OF CERTAIN RELIEF.— "(1) Ebccept as provided in paragraph (2), any action described in subsection (aX3XA), (B), or (C), that is taken under subsection (aXD shall take effect within 15 days after the day on which the President proclaims the action, unless the President announces, on the date he decides to take such action, his intention to n^otiate one or more orderly marketing agreements in which case the action under subsection (aX3XA), (B), or iO shall be proclaimed and take effect within 90 days after the date of such decision. "(2) If the contingency set forth in subsection (c) occurs, the President shall, within 30 days after the date of the enactment of the joint resolution referred to in such subsection, proclaim the action recommended by the Commission under section 202(eXl). "(e) LIMITATIONS ON ACTIONS.— "(IXA) The duration of the period in which action taken under this section may be in effect shall not exceed 8 years. "(B) If the initial effective period for action taken under this section is less than 8 years, the President ma^ extend the effective period once, but the aggregate of the initial period and M the extension may not exceed 8 years. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1237 "(2) Action may be taken under subsection (aXlXA), (B), or (C) or under section 202(dX2XB) only to the extent the cumulative impact of such action does not exceed the amount necessary to prevent or remedy the serious injury or threat thereof. "(3) No action may be taken under this section which would increase a rate of duty to (or impose a rate) which is more than 50 percent ad valorem above the rate (if any) existing at the time the action is taken. "(4) Any action taken under this section proclaiming a quantitative restriction shall permit the importation of a quantity or value of the article which is not less than the quantity or value of such article imported into the United States during the most recent period that is representative of imports of such article. "(5) To the extent feasible, an effective period of more than 3 years for an action described in subsection (aX3XA), (B), or (C) shall be phased down during the period in which the action is taken, with the first reduction taking effect no later than the close of the day which is 3 years after the day on which such action first takes effect. "(6XA) The suspension, pursuant to any action taken under this section, of— "(i) item 806.30 or 807.00 of the Tariff Schedules of the United States with respect to an article; and "(ii) the designation of any article as an eligible article for purposes of title V; shall be treated as an increase in duty. "(B) No proclamation providing for a suspension referred to in subparagraph (A) with respect to any article may be made by the President, nor may any such suspension be recommended by the C!ommission under section 203(c), unless the Commission, in addition to making an affirmative determination under section 202(bXl), determines in the course of its investigation under section 203(a) that the serious injury, or threat thereof, substantially caused by imports to the domestic industry producing a like or directly competitive article results from, as the case may "(A) the application of item 806.30 or item 807.00; or "(B) the designation of the article as an eligible article for the purposes of title V. "(f) ORDERLY MARKETING AND OTHER AGREEMENTS.— "(1) If the President takes action under this section other than the implemention of orderly marketing agreements, the President may, after such action takes effect, negotiate orderly marketing agreements with foreign countries, and may, after such agreements take effect, suspend or terminate, in whole or in part, any action previously taken. * (2) If an orderly marketing agreement implemented under subsection (a) is not effective, the President may, consistent with the limitations contained in subsection (e), take additional action under subsection (a). "(g) REGULATIONS.— "(1) The President shall by regulation provide for the efficient and fair administration of all actions taken for the purpose of providing import relief under this chapter. "(2) In order to carry out an orderly marketing or other international agreement concluded under this chapter, the President may prescribe regulations governing the entry or 102 STAT. 1238 PUBLIC LAW 100-418—AUG. 23, 1988 withdrawal from warehouse of articles covered by such agreement. In addition, in order to carry out any orderly marketing agreement concluded under this chapter with one or more countries accounting for a major part of United States imports of the article covered by such agreements, including imports into a major gec^aphic area of the United States, the President may issue r^ulations governing the entry or withdrawal from warehouse of like articles which are the product of countries not parties to such agreement. "(3) Regulations prescribed under this subsection shall, to the extent practicable and consistent with efficient and fair administration, insure against inequitable sharing of imports by a relatively small number of the larger importers. 19 u s e 2254. "SEC. 204. MONITORING, MODIFICATION, AND TERMINATION OF ACTION. "(a) MONITORING.— Reports. "(1) So long as any action taken under section 203 remains in effect, the Commission shall monitor developments with respect to the domestic industry, including the progress and specific efforts made by workers and firms in the domestic industry to make a positive adjustment to import competition. "(2) The Commission shall submit a report on the results of the monitoring under paragraph (1) to the President and to the Congress not later than— "(A) the 2nd-anniversary of the day on which the action under section 203 first took effect; and "(B) the last day of each 2-year period occurring after the 2-year period referred to in subparagraph (A). "(3) In the course of preparing each report under paragraph (2), the Commission shall hold a hearing at which interested persons shall be given a reasonable opportunity to be present, to produce evidence, and to be heeird. "(4) Upon request of the President, the Commission shall advise the President of its judgment as to the probable economic effect on the industry concerned of any extension, reduction, modification, or termination of the action taken under section 203 which is under consideration. "(b) REDUCTION, MODIFICATION, AND TERMINATION OF ACTION.— "(1) Action taken under section 203 may be reduced, modified, or terminated by the President (but not before the President receives the report required under subsection (aX2XA)) if the President— "(A) after taking into account any report or advice submitted by the Commission under subsection (a) and after seeking the advice of the Secretary of Commerce and the Secretary of Labor, determines, on the basis that either— "(i) the domestic industry has not made adequate efforts to make a positive adjustment to import competition, or "(ii) the effectiveness of the action taken under section 203 has been impaired by changed economic circumstances, that changed circumstances warrant such reduction, or termination; or "(B) determines, after a majority of the representatives of the domestic industry submits to the President a petition requesting such reduction, modification, or termination on PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1239 such basis, that the domestic industry has made a positive adjustment to import competition. "(2) Notwithstanding paragraph (1), the President is au- President of U.S. thorized to take such additional action under section 203 £is may be necessary to eliminate any circumvention of any action previously taken under such section. "(d) EVALUATION OF EFFECTIVENESS OF ACTION.— "(1) After any action taken under section 203 has terminated, the Commission shall evaluate the effectiveness of the actions in facilitating positive adjustment by the domestic industry to import competition, consistent with the reasons set out by the President in the report submitted to the Congress under section 203(b). "(2) During the course of the evaluation conducted under paragraph (1), the Commission shall, after reasonable public notice, hold a hearing on the effectiveness of the action. All interested persons shall have the opportunity to attend such hearing and to present evidence or testimony at such hearing. "(3) A report on the evaluation made under paragraph (1) and Reports. the hearings held under paragraph (2) shall be submitted by the Commission to the President and to the Congress by no later than the 180th day after the day on which the actions taken under section 203 terminated. "(e) OTHER PROVISIONS.— "(1) Action by the President under this chapter may be taken without regard to the provisions of section 126(a) of this Act but only after consideration of the relation of such actions to the international obligations of the United States. "(2) If the C!!ommission treats as the domestic industry produc- President of U.S. tion located in a major geographic area of the United States under section 202(cX4XC), then the President shall take into account the geographic concentration of domestic production and of imports in that area in taking any action authorized under paragraph (1).". (b) CONFORMING AMENDMENTS.— (1) TRADE ACT OF 1974.—The Trade Act of 1974 is amended as follows: (A) section 123(bX4) is amended by striking out "import 19 USC 2133. relief under section 203(h)." and inserting "action under sections 203(e) and 204.". (B) Sections 224 and 264 (19 U.S.C. 2274 and 2354) are each amended— (i) by striking out "201" in subsection (a) and inserting "202"; (ii) by striking out "201" in subsection (b) and inserting "202(f)"; and such section 264 is amended by striking out "201(b)" in subsection (c) and inserting "202(b)". (2) CARIBBEAN BASIN ECONOMIC RECOVERY ACT.—Section 213 of the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703) is amended— (A) by striking out "proclaimed pursuant to section 203" i in subsection (eXD and inserting "provided under chapter 1 of title II"; (B) by striking out "201(dXl)" in subsection (eX2) and inserting "202(f)'^; 102 STAT. 1240 PUBLIC LAW 100-418—AUG. 23, 1988 (O by striking out "(a) and (c) of section 203" in subsection (eX3) and inserting "section 203"; (D) by amending sul^ection (eX4)— (i) by striking out "made under subsections (a) and (c) of section 203' and inserting "taken under section 203"; (ii) by striking out "2010))" the first place it appears and inserting "202(b)"; and (iii) by striking out "section 2010)) of such Act" and inserting "such section"; (E) by amending subsection (eX5)— (i) by striking out "proclamation issued pursuant to section 203" in subparagraph (A) and inserting "action taken under section 203 ; and (ii) by amending subparagraph (B)— (I) by striMng out "to import relief and inserting "to any such action", (II) by striking out "such import relief and inserting "such action", and (IQ) by striking out "subsections (h) and (i) of section 203" and inserting "section 203"; (F) by amending subsection (fK4)— (i) by amending subparagraph (A) by striking out "proclamation of import relief pursuant to section 202(aXl)" and inserting "taking of action under section 203", and (ii) by amending subparagraph (B) to read as follows: "(B) on the day a determination by the President not to take action under section 203 of such Act not to take action becomes final,". (3) TRADE AND TARIFF ACT OF I 9 8 4 . — 19 use 2112 "ote 19 use 2112 "°** (A) Title IV of the Tariff and Trade Act of 1984 is amended— (i) by amending section 403— (I) by striking out "section 201(dXl)" in subsection (b) and inserting "section 202(f)", (ID by striking out "subsections (a) and (c) o f in subsections (c) and (d), a n ) by striking out "201(b)" in subsection (d) and inserting "2020)) , and (IV) by striking out "subsections (h) and (i) of section 203" in subsection (eX2) and inserting "sections 203 and 204"; and (ii) by amending section 404— CI) by striking out "section 201" in subsection (a) and inserting "section 202(a)", (II) by striking out "proclamation of import relief under section 202(aXl)" in subsection (dXD and inserting "taking of action under section 203", and (ni) by amending subsection (dX2) to read as follows: "(2) on the day a determination of the President under section 203 of such Act not to take action becomes final;". (4) TARIFF ACT OF 1930.—Section 330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)) is amended— (A) by amending paragraph (1) by striking out "201" and inserting "202"; PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1241 (B) by amending paragraph (2)— (i) by striking out "201" the first place it appears and inserting "202(b)", (iii) by striking out "201(dXl)" and inserting "202(eXl)", (iv) by striking out "sections 202 and 203" each place it appears and inserting "section 203", and (v) by striking out "2030^)" in subparagraph (B) and inserting "204(a)"; and (C) by striking out "203(cXl)" in paragraph (4) and inserting "203(a)". (5) TABLE OF CONTENTS.—The entry for such chapter 1 in the table of contents to the Trade Act of 1974 is amended to read as follows: "CHAPTER 1—POSITIVE ADJUSTMENT BY INDUSTRIES INJURED BY IMPORTS "Sec. "Sec. "Sec. "Sec. 201. Action to facilitate positive adjustment to import competition. 202. Investigations, determinations, and recommendations by Commission. 203. Action by President after determination of import injury. 204. Monitoring, modification, and termination of action.". (c) EFFECTIVE DATE.—The amendments made by subsections (a) 19USC2251 and (b) shall take effect on the date of the enactment of this Act £ind "°^®shall apply with respect to investigations initiated under chapter 1 of title II of the Trade Act of 1974 on or after that date. Any petition filed under section 201 of such chapter before such date of enactment, and with respect to which the United States International Trade Commission did not make a finding before such date with respect to serious injury or the threat thereof, may be withdrawn and refiled, without prejudice, by the petitioner under section 202(a) of such chapter (as amended by this section). PART 2—MARKET DISRUPTION SEC. 1411. MARKET DISRUPTION. (a) I N GENERAL.—Section 406 of the Trade Act of 1974 (19 U.S.C. 2436) is amended as follows— (1) Subsection (b) is amended to read as follows: "(b) With respect to any affirmative determination of the Commission under subsection (a)— "(1) such determination shall be treated as an affirmative determination made under section 201(b) of this Act (as in effect on the day before the date of the enactment of the Omnibus Trade and Competitiveness Act of 1988); and "(2) sections 202 and 203 of this Act (as in effect on the day before the date of the enactment of such Act of 1988), rather than the provisions of chapter 1 of title 11 of this Act as amended by section 1401 of such Act of 1988, shall apply with respect to the taking of subsequent action, if any, by the President in response to such affirmative determination; except that— "(A) the President may take action under such sections 202 and 203 only with respect to imports from the country or countries involved of the article with respect to which the afGrmative determination was made; and "(B) if such action consists of, or includes, an orderly marketing agreement, such agreement shall be entered into within 60 days after the import relief determination date.". 102 STAT. 1242 PUBLIC LAW 100-418—AUG. 23, 1988 (2) Subsection (c) is amended by inserting "referred to in subsection (b)" after "sections 202 and 203". (3) Subsection (e)(2) is amended— (A) by inserting "(A)" after "(2)"; and (B) by inserting at the end thereof the following new subparagraphs: "(B) For purposes of subparagraph (A): "(i) Imports of an article shall be considered to be increasing rapidly if there has been a significant increase in such imports (either actual or relative to domestic production) during a recent period of time. "(ii) The term 'significant cause' refers to a cause which contributes significantly to the material injury of the domestic industry, but need not be equal to or greater than any other cause. "(C) The Commission, in determining whether market disruption exists, shall consider, among other factors— "(i) the volume of imports of the merchandise which is the subject of the investigation; "(ii) the effect of imports of the merchandise on prices in the United States for like or directly competitive articles; "(iii) the impact of imports of such merchandise on domestic producers of like or directly competitive articles; and "(iv) evidence of disruptive pricing practices, or other efforts to unfairly manage trade patterns.", (b) CONFORMING AMENDMENTS REQUIRED BY AMENDMENT OF CHAP- 19 use 2436. 19 use 2436 note. TER 1 OF TiTLE II OF THE TRADE ACT OF 1974.—Such section 406 is further amended— (1) by striking out "201(a)(1)" in subsection (a)(1) and subsection (d) and inserting "202(a)"; and (2) by striking out "subsections (a)(2), (b)(3), and (c) of section 201" in subsection (a)(2) and inserting "subsections (a)(3), (b)(4), and (c)(4) of section 202". (c) EFFECTIVE DATE.—The amendments made by subsections (a) and (b) apply with respect to investigations initiated under section 406(a) of the Trade Act of 1974 on or after the date of the enactment of this Act. PART 3—TRADE ADJUSTMENT ASSISTANCE Employment and unemployment. SEC. 1421. ELIGIBILITY OF WORKERS AND FIRMS FOR TRADE ADJUSTMENT ASSISTANCE. / \ /-% -HT / - I T (a) OIL AND NATURAL GAS INDUSTRY.— (1)(A) Section 222 of the Trade Act of 1974 (19 U.S.C. 2272) is amended— (i) bv striking out "For purposes of paragraph (3), the term contributed importantly means a cause which is important, but not necessarily more important than any other cause.", (ii) by striking out "The Secretary" and inserting in lieu thereof "(a) The Secretary", and (iii) by adding at the end thereof the following new suljsection: "(b) For purposes of subsection (aX3)— PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1243 "(1) The term 'contributed importantly' means a cause which is important but not necessarily more important than any other cause. "(2)(A) Any firm, or appropriate subdivision of a firm, that engages in exploration or drilling for oil or natural gas shall be considered to be a firm producing oil or natural gas. "(B) Any firm, or appropriate subdivision of a firm, that engages in exploration or drilling for oil or natural gas, or otherwise produces oil or natural gas, shall be considered to be producing articles directly competitive with imports of oil and with imports of natural gas.". (B) Notwithstanding section 223(b) of the Trade Act of 1974, or 19 USC 2272 any other provision of law, any certification made under sub- "o^^. chapter A of chapter 2 of title II of such Act which— (i) is made with respect to a petition filed before the date that is 90 days after the date of enactment of this Act, and (ii) would not have been made if the amendments made by subparagraph (A) had not been enacted into law, shall apply to any worker whose most recent total or partial separation from the firm, or appropriate subdivision of the firm, : described in section 222(a) of such Act occurs after Septem* ber 30,1985. (2) Subsection (c) of section 251 of the Trade Act of 1974 (19 U.S.C. 2341(c)) is amended to read as follows: "(cXD The Secretary shall certify a firm (including any agricultural firm) as eligible to apply for adjustment assistance under this chapter if the Secretary determines— "(A) that a significant number or proportion of the workers in such firm have become totally or partially separated, or are threatened to become totally or partially separated, "(B) that— "(i) sales or production, or both, of such firm have decreased absolutely, or "(ii) sales or production, or both, of an article that accounted for not less than 25 percent of the total production ^, or sales of the firm during the 12-month period preceding the most recent 12-month period for which data are available have decreased absolutely, and "(C) increases of imports of articles like or directly competitive with articles which are produced by such firm contributed importantly to such total or partial separation, or threat thereof, and to such decline in sales or production. "(2) For purposes of paragraph (IXC)— "(A) The term 'contributed importantly' means a cause which is important but not necessarily more important than any other cause. "(BXi) Any firm which engages in exploration or drilling for oil or natural gas shall be considered to be a firm producing oil or natural gas. "(ii) Any firm that engages in exploration or drilling for oil or natural gas, or otherwise produces oil or natural gas, shall be considered to be producing articles directly competitive with imports of oil and with imports of natural gas.", (b) APPUCATION TO ALL INDUSTRIES.— (1) Paragraph (3) of section 222(a) of the Trade Act of 1974 (19 U.S.C. 2272(aX3)) is amended to read as follows: 102 STAT. 1244 PUBLIC LAW 100-418—AUG. 23, 1988 "(3) increases of imports of articles like or directly competitive with articles— "(A) which are produced by such workers' firm or appropriate subdivision thereof, or "(B) for which such workers' firm, or appropriate subdivision thereof, provides essential goods or essential services, contributed importantly to such total or partial separation, or threat thereof, and to such decline in siales or production.". (2) Subparagraph (C) of section 251(cXl) of the Trade Act of 1974 (19 U.S.C. 2341(cXlXC)) is amended to read as follows: "(C) increases of imports of articles like or directly competitive with articles— "(i) which are produced by such firm, or "(ii) for which such firm provides essential goods or essential services, contributed importantly to such total or partial separation, or threat thereof, and to such decline in sales or production.". Employment and SEC. 1422. NOTICE TO WORKERS OF BENEFITS UNDER TRADE ADJUSTMENT ASSISTANCE PROGRAM. unemployment. gection 225 of the Trade Act of 1974 (19 U.S.C. 2275) is amended— (1) by striking out "The Secretary" in the first sentence and inserting in lieu thereof "(a) The Secretary", and (2) by adding at the end thereof the following new subsection: "(bXl) "rtie Secretary shall provide written notice through the mail of the benefits available under this chapter to each worker whom the Secretary has reason to believe is covered by a certification made under subchapter A of this chapter— "(A) at the time such certification is made, if the worker was partially or totally separated from the adversely affected employment before such certification, or (B) at the time of the total or partial separation of the worker fi-om the adversely affected employment, if subparagraph (A) does not apply. "(2) The Secretary shall publish notice of the benefits available under this chapter to workers covered by each certification made under subchapter A in newspapers of general circulation in the areas in which such workers reside.". Mail. Employment J „«^«,r.i«,rrv,or,t unemployment. SEC. 1423. CASH ASSISTANCE FOR WORKERS. (») PARTicaPATiON IN TRAINING PROGRAM REQUIRED.— ^^^ Paragraph (5) of section 231(a) of the Trade Act of 1974 (19 U.S.C. 2291(aX5)) is amended to read as follows: "(5) Such worker— "(A) is enrolled in a training program approved by the Secretary under section 236(a), "(B) bias, after the date on which the worker became totally separated, or partially separated, from the adversely affected employment, completed a training program approved by the Secretary under section 236(a), or "(C) has received a written statement certified under subsection (cXl) after the date described in subparagraph (B).". (2) Subsection (b) of section 231 of the Trade Act of 1974 (19 U.S.C. 2291(b)) is amended to read as follows: "(bXDIf"(A) the Secretary determines that— PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1245 "(i) the adversely affected worker— "(I) has failed to begin participation in the training progrsim the enrollment in which meets the requirement of subsection (aX5), or "(II) has ceased to participate in such training program before completing such training program, and "(ii) there is no justifiable cause for such failure or cessation, or "(B) the certification made with respect to such worker under subsection (cXl) is revoked under subsection (c)(2), no trade readjustment allowance may be paid to the adversely affected worker under this part for the week in which such failure, cessation, or revocation occurred, or any succeeding week, until the adversely affected worker begins or resumes participation in a training program approved under section 236(a). "(2) The provisions of subsection (a)(5) and paragraph (1) shall not apply with respect to any week of unemployment which begins— "(A) after the date that is 60 days after the date on which the petition that results in the certification that covers the worker is filed under section 221, and "(B) before the first week following the week in which such certification is made under subchapter (A).". (3) Subsection (c) of section 231 of the Trade Act of 1974 (19 U.S.C. 2291(c)) is amended to read as follows: "(cXlXA) If the Secretary finds that it is not feasible or appropriate to approve a training program for a worker under section 236(a), the Secretary shall submit to such worker a written statement certifjdng such finding. "(B) If a State or State agency has an agreement with the Sec- State and local retary under section 239 and the State or State agency finds that it governments. is not feasible or appropriate to approve a training program for a Contracts. worker pursuant to the requirements of section 236(a), the State or State agency shall— "(i) submit to such worker a written statement certifying such finding, and "(ii) submit to the Secretary a written statement certifjring such finding and the recisons for such finding. "(2)(A) If, after submitting to a worker a written statement certified under paragraph (IXA), the Secretary finds that it is feasible or appropriate to approve a training program for such worker under section 236(a), the Secretary shall submit to such worker a written statement that revokes the certification made under paragraph (IXA) with respect to such worker. "(B) If, after submitting to a worker a written statement certified under paragraph (IXB), a State or State agency finds that it is feasible or appropriate to approve a training program for such worker pursuant to the requirements of section 236(a), the State or State agency shall submit to such worker, and to the Secretary, a written statement that revokes the certification made under paragraph (IXB) with respect to such worker, "(3) The Secretary shall submit to the Finance Committee of the Reports, Senate and to the Ways and Means (Committee of the House of Representatives an annual report on the number of workers who received certifications under paragraph (1) during the preceding year and the number of certifications made under paragraph (1) that were revoked during the preceding year.". 102 STAT. 1246 PUBLIC LAW 100-418—AUG. 2 3 , 1988 (4) Paragraph (3) of section 239(a) of the Trade Act of 1974 (19 U.S.C. 2311(a)(3)) is amended to read as follows: "(3) will make any certifications required under section 231(c)(2), and". (b) WEEKLY AMOUNTS OF READJUSTMENT ALLOWANCES.—Section 232 of the Trade Act of 1974 (19 U.S.C. 2292) is amended— (1) by striking out ", including on-the-job training," in subsection (b), and (2) by striking out "under section 231(c) or 236(c)" in subsection (c) and inserting in lieu thereof "under section 231(b)". (c) LIMITATIONS.—Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is amended— (1) by striking out "is approved" in subsection (a)(3XB) and inserting in lieu thereof "begins", (2) by striking out "engaged in such training and has not been determined under section 236(c) to be failing to make satisfactory progress in the training" in subsection (a)(3) and inserting in lieu thereof "participating in such training", and (3) by adding at the end thereof the following new subsection: "(f) For purposes of this chapter, a worker shall be treated as participating in training during any week which is part of a break in training that does not exceed 14 days if— "(1) the worker was participating in a training program approved under section 236(a) before the beginning of such break in training, and "(2) the break is provided under such training program.". (d) SUPPLEMENTAL PROJECTS.— WAGE ALLOWANCE DEMONSTRATION (1) Subchapter C of chapter 2 of title II of the Trade Act of 1974 is amended by inserting after section 245 the following new section: 19 u s e 2318. "SEC. 246. SUPPLEMENTAL PROJECTS. WAGE ALLOWANCE DEMONSTRATION "(a) The Secretary shall establish and carry out one or more demonstration projects during fiscal years 1989 and 1990 for the purpose of^ "(1) determining the attractiveness of a supplemental wage allowance to various categories of workers eligible for assistance under this chapter, based on the amount and duration of the supplement; "(2) determining the effectiveness of a supplemental wage allowance as an option under this chapter in facilitating the readjustment of adversely affected workers; and "(3) determining whether a supplemental wage allowance should be made an option under the Trade Adjustment Assistance program for all fiscal years. "(bXD For purposes of this section, the term 'supplemental wage allowance' means a payment that is made to an adversely affected worker who— "(A) accepts full-time emplojmient at an average weekly wage that is less than the average weekly wage of the worker in the adversely affected emplo3mient, "(B) prior to such acceptance, is eligible for trade readjustment allowances under part I of subchapter B, and "(C) voluntarily elects to receive such payment in lieu of any trade readjustment allowances that the worker would otherwise PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1247 be eligible to receive with respect to the period covered by the certification made under subchapter A that applies to such worker. "(2) A supplemental wage allowance shall be provided under any demonstration project established under subsection (a) to a worker described in paragraph (1) for each week during which the worker performs services in the full-time employment referred to in paragraph dXA) in an amount that does not exceed the lesser of— "(A) the amount of the trade readjustment allowance that the worker would have been eligible to receive for any week under part 1 of subchapter B if the worker had not accepted the fulltime employment and had not made the election described in paragraph (IXC), or "(B) the excess of^ "(i) an amount equal to 80 percent of the average weekly wage of the worker in the adversely affected emplo3maent, over "(ii) the average weekly wage in the full-time emplojmient. "(3XA) Supplemental wage allowances shall not be provided under any demonstration project established under subsection (a) for more than 52 weeks. "(B) The total amount of supplemental wage allowances that may be paid to any worker under any demonstration project established under subsection (a) with respect to the period covered by the certification applicable to such worker shall not exceed an amount that is equal to the excess of— "(i) the amount of the limitation imposed under section 233(aXl) with respect to such worker for such period, over "(ii) the amount of the trade readjustment allowsmces paid under part I of subchapter B to such worker for such period. "(c) The Secretary shall provide for an evaluation of demonstration projects conducted under this section to determine at least the following: "(1) the extent to which different age groups of eligible recipients utilize the supplemental wage allowance; "(2) the effect of the amount and duration of the supplemental wage allowance on the utilization of the allowance; "(3) the extent to which the supplemental wage allowance affects the demand for training and the appropriateness thereof; "(4) the extent to which the supplemental wage allowance facilitates the readjustment of workers who would not otherwise utilize benefits provided under this chapter; "(5) the extent to which the allowance affects the cost of carrying out the provisions of this chapter; and "(6) the effectiveness of the supplemental wage allowance as an option under this chapter in facilitating the readjustment of adversely affected workers. "(d) By no later than the date that is 3 years after the date of Reports. enactment of the Omnibus Trade and Competitiveness Act of 1988, the Secretary shall transmit to the Congress a report that includes— "(1) an evaluation of the projects authorized under this section that is conducted in accordance with subsection (c), and "(2) a recommendation as to whether the supplemental wage allowance should be available on a permanent basis as an 102 STAT. 1248 19 use 2318 note. Employment ^^t «i« ^^^f unemployment. Education. PUBLIC LAW 100-418—AUG. 23, 1988 option for some or all workers eligible for assistance under this chapter.". (2) For purposes of funding the demonstration projects established under section 246(a) of the Trade Act of 1974, as added by paragraph (1) of this subsection— (A) the supplemental wage allowances payable under such projects shall be considered to be trade readjustment allowances payable under part I of subchapter B of chapter 2 of title II of the Trade Act of 1974, and (B) the costs of administering such projects by the States shall be considered to be costs of administering such part I. (3) The table of contents of the Trade Act of 1974 is amended by inserting after the item relating to section 245 the following new item: "Sec. 246. Supplemental wage allowance demonstration projects.". SEC. 1424. JOB TRAINING FOR WORKERS. (a) IN GENERAL.—Subsection (a) of section 236 of the Trade Act of ^^^ ^^g ^ g ^ 2296(a)) is a m e n d e d (1) by striking out "is available" in paragraph (1)(D) and inserting in lieu thereof "is reasonably available", (2) by striking out ", and" at the end of subparagraph (D) of paragraph (1), (3) by adding "and" at the end of subparagraph (E) of paragraph (1), (4) by inserting after subparagraph (E) of paragraph (1) the following new subparagraph: 'W) such training is suitable for the worker and available at a reasonable cost,", (5) by striking out "(to the extent appropriated funds are available)" in the first sentence of paragraph (1), (6) by inserting "(subject to the limitations imposed by this section)" after "costs of such training" in the second sentence of paragraph (1), (7) by inserting "directly or through a voucher system" after "by the Secretfiury" in the second sentence of paragraph (1), (8) by striking out "and" at the end of subparagraph (C) of paragraph (4), (9) by redesignating subparagraph (D) of paragraph (4) as subparagraph (F) of paragraph (4), (10) by inserting after subparagraph (C) of paragraph (4) the following new subparagraphs: "(D) any prog^ram of remedial education, "(E) any training program (other than a training program described in paragraph (7)) for which all, or any portion, of the costs of training the worker are paid— "(i) under any Federal or State program other than this chapter, or "(ii) from any source other than this section, and", (11) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (5), respectively, (12) by inserting after paragraph (1) the following new paragraph: "(2XA) The total amount of payments that may be made under paragraph (1) for any fiscal year shall not exceed $80,000,000. "(B) If, during any fiscal year, the Secretary estimates that the amount of funds necessary to pay the costs of training approved PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1249 under this section will exceed the simount of the limitation imposed under subparagraph (A), the Secretary shall decide how the portion of such limitation that has not been expended at the time of such estimate is to be apportioned among the States for the remainder of such fiscsd year.", and (13) by adding at the end of subsection (a) the following new paragraphs: "(6XA) The Secretary is not required under paragraph (1) to pay the costs of any training approved under paragraph (1) to the extent that such costs are paid— "(i) under any Federal or State program other thsin this chapter, or "(ii) from any source other than this section. "(B) Before approving any training to which subparagraph (A) Contracts. may apply, the Secretary may require that the adversely affected worker enter into an agreement with the Secretary under which the Secretary will not be required to pay under this section the portion of the costs of such training that the worker has reason to believe will be paid under the program, or by the source, described in subparagraph (A) or (B) of paragraph (1). "(7) The Secretary shall not approve a training program if— "(A) all or a portion of the costs of such training program are paid under any nongovernmental plan or program, "(B) the adversely affected worker has a right to obtain training or funds for training under such plan or program, and "(C) such plan or program requires the worker to reimburse the plan or program from funds provided under this chapter, or from wages paid under such training program, for any portion of the costs of such training program paid under the plan or program. "(8) The Secretary may approve training for any adversely affected worker who is a member of a group certified under subchapter A at any time £ ^ r the date on which the group is certified under subchapter A, without regard to whether such worker has exhausted all rights to any unemplojnnent insurance to which the worker is entitled. "(9) The Secretary shall prescribe regulations which set forth Regulations. the criteria under each of the subparagraphs of paragraph (1) that will be used as the basis for making determinations under paragraph (1).". (b) DELAYED INCREASE IN LIMITATION.—Paragraph (2) of section 236(a) of the Trade Act of 1974, as added bv subsection (aX12) of this section, is amended by striking out "$80,000,000" in subparagraph (A) and inserting in lieu thereof "$120,000,000". (c) ON-THE-JOB TRAINING.—Section 236 of the Trade Act of 1974 (19 U.S.C. 2296) is amended— (1) by striking out that portion of subsection (d) that precedes paragraph (1) and inserting in lieu thereof the following: "(d) The Secretary shall pay the costs of any on-the-job training of an adversely affected worker that is approved under subsection (aXD in equal monthly installments, but the Secretary may pay such costs, notwithstanding any other provision of this section, only if—", (2) by striking out subsection (c), and (3) by redesignating subsections (d), (e), and (f) as subsections (c), (d), and (e), respectively. (d) AGREEMENTS WFFH THE STATES.— 102 STAT. 1250 PUBLIC LAW 100-418—AUG. 23, 1988 (1)(A) Section 235 of the Trade Act of 1974 (19 U.S.C. 2295) is amended by striking out "cooperating State agencies" and inserting in lieu thereof "the States". (B) Subsection (e) of section 239 of the Trade Act of 1974 (19 U.S.C. 2311(e)) is amended to read as follows: "(e) Any agreement entered into under this section shall provide for the coordination of the administration of the provisions for employment services, training, and supplemental assistance under sections 235 and 236 of this Act and under title III of the Job Training Partnership Act upon such terms and conditions as are established by the Secretary in consultation with the States and set forth in such agreement. Any agency of the State jointly administering such provisions under such agreement shall be considered to be a cooperating State agency for purposes of this chapter.". (2) Subsection (f) of section 239 of the Trade Act of 1974 (19 U.S.C. 2311(f)) is amended to read as follows: "(f) Each cooperating State agency shall, in carrying out subsection (a)(2)— "(1) advise each worker who applies for unemployment insurance of the benefits under this chapter and the procedures and deadlines for applying for such benefits, "(2) facilitate the early filing of petitions under section 221 for any workers that the agency considers are likely to be eligible for benefits under this chapter, "(3) advise each adversely affected worker to apply for training under section 236(a) before, or at the same time, the worker applies for trade readjustment allowances under part I of subchapter B, and "(4) as soon as practicable, interview the adversely affected worker regarding suitable training opportunities available to the worker under section 236 and review such opportunities with the worker.". Employment and unemplojmient. 19 u s e 2293 note. SEC. 1425. LIMITATION ON PERIOD IN WHICH TRADE READJUSTMENT ALLOWANCES MAY BE PAID. (a) IN GENERAL.—Paragraph (2) of section 233(a) of the Trade Act of 1974 (19 U.S.C. 2293(a)(2)) is amended to read as follows: "(2) A trade readjustment allowance shall not be paid for any week occurring after the close of the 104-week period that begins with the first week following the week in which the adversely affected worker was most recently totally separated from adversely affected employment— "(A) within the period which is described in section 231(aXl), and "(B) with respect to which the worker meets the requirements of section 231(a)(2).". (b) WAIVER OF CERTAIN TIME LIMITATIONS.— (1) The provisions of subsections (aX2) and (b) of section 233 of the Trade Act of 1974 shall not apply with respect to any worker who became totally separated from adversely affected employment (within the meaning of section 247 of such Act) during the period that began on August 13, 1981, and ended on April 7, 1986. (2XA) Any worker who is otherwise eligible for payment of a trade readjustment allowance under part I of subchapter B of chapter 2 of title II of the Trade Act of 1974 by resison of PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1251 paragraph (1) of this subsection may receive payments of such allowance only if such worker— (i) is enrolled in a training program, approved by the Secretary under section 236(a) of such Act, and (ii) has been unemployed continuously since the date on which the worker became totally separated from the adversely affected employment, not talang into account seasonal employment, odd jobs, or part-time, temporary employment. (B) If the Secretary of Labor determines that— (i) a worker— (D has failed to begin participation in the training program the enrollment in which meets the requirement of subparagraph (A), or (II) has ceased to participate in such training program before completing such training program, and (ii) there is no justifiable cause for such failure or cessation, no trade readjustment allowance may be paid to the worker under part I of subchapter B of chapter 2 of title II of the Trade Act of 1974 for the week in which such failure or cessation occurred, or any succeeding week, until the worker begins or resumes participation in a training prc^am approved under section 236(a) of such Act. SEC. 1426. AUTHORIZATION OF TRADE ADJUSTMENT ASSISTANCE PROGRAM. (a) ElxTENSiON OF SuNSET.—Subsection (b) of section 285 of the Trade Act of 1974 (19 U.S.C. 2271, preceding note) is amended to read as follows: "(b) No assistance, vouchers, allowances, or other payments may be provided under chapter 2, no technical assistance may be provided under chapter 3, and no duty shall be imposed under section 287, after September 30,1993.". (b) AUTHORIZATION OF APPROPRIATIONS.— (1) Section 245 of the Trade Act of 1974 (19 U.S.C. 2317) is amended by striking out "1986,1987,1988,1989,1990, and 1991" and inserting in Ueu thereof "1988, 1989, 1990, 1991, 1992, and 1993". (2) Subsection (b) of section 256 of the Trade Act of 1974 (19 U.S.C. 2346(b)) is amended by striking out "1986, 1987, 1988, 1989, 1990, and 1991" and inserting in Ueu thereof "1988, 1989, 1990,1991,1992, and 1993". (c) SPECIAL RULE.—In addition to amounts appropriated for payments under sections 236, 237, and 238 of the Trade Act of 1974 (19 U.S.C. 2296) for fiscal year 1988, such amounts as may be necessary for payments under such sections— (1) after the date of enactment of this Act, and (2) before October 1,1988, are hereby appropriated and shall be charged to the appropriation for payments under such sections for fiscal year 1989. SEC. 1427. TRADE ADJUSTMENT ASSISTANCE TRUST FUND. (a) IN GENERAL.—Chapter 5 of title II of the Trade Act of 1974 (19 U.S.C. 2391, et seq.) is amended by inserting after section 285 the following new section: 102 STAT. 1252 19 u s e 2396. Reports. Securities. PUBLIC LAW 100-418—AUG. 23, 1988 "SEC. 286. TRADE ADJUSTMENT ASSISTANCE TRUST FUND. "(a) There is hereby established within the Treasury of the United States a trust fund to be known as the Trade Adjustment Assistance Trust Fund (hereinafter in this section referred to as the 'Trust Fund'), consisting of such amounts as may be transferred or credited to the Trust Fund as provided in this section or appropriated to the Trust Fund under subsection (e). "0)X1) The Secretary of the Treasury shall transfer to the Trust Fund out of the general fund of the Treasury of the United States amounts determined by the Secretary of the Treasury to be equivalent to the amounts received into such general fund that are attributable to the duty imposed by section 287. "(2) The amounts which are required to be transferred under paragraph (1) shall be transferred at leeist quarterly from the general fund of the Treasury of the United States to the Trust Fund on the basis of estimates made by the Secretary of the Treasury of the amounts referred to in paragraph (1) that are received into the Treasury. Proper adjustments shall be made in the amounts subsequently transferred to the extent prior estimates were in excess of, or less than, the amounts required to be transferred. "(cXD The Secretary of the Treasury shall be the trustee of the Trust Fund, and shall submit an annual report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives on the financial condition and the results of the operations of the Trust Fund during the fiscal year preceding the fiscal year in which such report is submitted and on the expected condition and operations of the Trust Fund during the fiscal year in which such report is submitted and the 5 fiscal years succeeding such fiscal year. Such report shall be printed as a House document of the session of the Congress to which the report is made. "(2XA) The Secretary of the Treasury shall invest such portion of the Trust Fund as is not, in his judgment, required to meet current withdrawals. Such investments may be made only in interestbearing obligations of the United States. For such purpose, such obligations may be acquired— "(i) on original issue at the issue price, or "(ii) by purchase of outstanding obligations at the market price. "(B) Any obligation acquired by the Trust Fund may be sold by the Secretary of the Treasury at the market price. "(C) The interest on, and the proceeds from the sale or redemption of, any obligations held in the Trust Fund shall be credited to and form a part of the Trust Fund. "(dXD Amounts in the Trust Fund shall be available— "(A) for the payment of drawbacks and refunds of the duty imposed by section 287 that are allowable under any other provision of Federal law, "(B) as provided in appropriation Acts— "(i) for expenditures that are required to carry out the provisions of chapters 2 and 3, including administrative costs, and "(ii) for payments required under subsection (e)(2). "(2) None of the amounts in the Trust Fund shall be available for the payment of loans guaranteed under chapter 3 or for any other expenses relating to financial assistance provided under chapter 3. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1253 "(3XA) If the total amount of funds expended in any fiscal year to carry out chapters 2 and 3 (including administrative costs) exceeds an amount equal to 0.15 percent of the total value- of all articles . upon which a duty was imposed by section 287 during the preceding 1-year period, the Secretary of Labor and the Secretary of Commerce (in consultation with the Secretary of the Treasury) shall, notwithstanding any provision of chapter 2 or 3, make a pro rata reduction in— "(i) the amounts of the trade readjustment allowances that are paid under part I of subchapter B of chapter 2, and "(ii) the assistance provided under chapter 3, to ensure (based on estimates of the amount of funds that will be necessary to carry out chapters 2 and 3, and of the amount of revenue that will be raised by section 287, during the remainder of such fiscal year and for the fiscal year succeeding such fiscal year) that all workers and firms eligible for assistance under chapter 2 or 3 receive some assistance under chapter 2 or 3 and that the expenditures made in providing such assistance during the remainder of such fiscal year and the fiscal year succeeding such fiscal year do not exceed the amount of funds available in the Trust Fund to pay for such expenditures. "(B) No reduction may be made under this paragraph in the amount of any trade readjustment allowance payable under part I of subchapter B of chapter 2 to any worker who received such trade readjustment allowance under such part for the week preceding the first week for which such reduction is otherwise being made under this paragraph. "(C) If a pro rata reduction made under subparagraph (A) is in effect at the close of a fiscal year, the Secretary of Labor and the Secretary of Commerce, in consultation with the Secretary of the Treasury, may adjust or modify such reduction at the beginning of the fiscal year succeeding such fiscal year, based on estimates of the amount of funds that will be necessary to carry out chapters 2 and 3, and of the amount of revenue that will be raised by section 287, during that succeeding fiscal year. "(D) Any pro rata reduction made under subparagraph (A), and any pro rata reduction adjusted or modified under subparagraph (C), shall cease to apply after the week in which— "(i) a 1-year period ends during which the total amount of funds that would have been expended to carry out chapters 2 and 3, including administrative costs, if such reduction were not in effect did not exceed an amount equal to 0.15 percent of the total value of all articles upon which a duty was imposed during such 1-year period, or "(ii) the Secretary of Labor and the Secretary of (Dommerce, in consultation with the Secretary of the Treasury, determine that the amount of funds available in the Trust Fund are sufficient to carry out chapters 2 and 3 without such reduction. "(eXlXA) There are authorized to be appropriated to the Trust Appropriation Fund, as repayable advances, such sums as may from time to time authorization. be necessary to make the expenditures described in subsection (dXlXB). "(B) Any advance appropriated to the Trust Fund under the authority of subparsigraph (A) may be paid to the Trust Fund only to the extent that the total amount of advances paid during the fiscal year to the Trust Fund from any appropriation authorized under 102 STAT. 1254 PUBLIC LAW 100-418—AUG. 23, 1988 subparagraph (A) that are outstanding after such advance is paid to the Trust Fund does not exceed the lesser of^ "(i) the excess of~ "(I) the total amount of funds that the Secretary of the Treasury (in consultation with the Secretary of Labor and the Secretary of Commerce) estimates will be necessary for the payments and expenditures described in subparagraphs (A) and (B) of subsection (d)(1) for such fiscal year, over "(II) the total amount of funds that the Secretary of the Treasury estimates will be available in the Trust Fund during the fiscal year (determined without regard to any advances made under this subsection during such fiscal year), or "(ii) the excess of^ "(I) an amount equal to 0.15 percent of the total value of all articles upon which the Secretary of the Treasury estimates a duty will be imposed by section 287 during such fiscal year, over "(II) the amount described in clause (i)(II). "(2) Advances made to the Trust Fund from appropriations authorized under paragraph (IXA) shall be repaid, and interest on such advances shall be paid, to the general fund of the Treeisury of the United States when the Secretary of the Treasury determines that sufficient funds are available in the Trust Fund for such purposes. "(3) Interest on advances made from appropriations authorized under paragraph (IXA) shall be at a rate determined by the Secretary of the Treasury (as of the close of the calendar month preceding the month in which the advance is made) to be equal to the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the anticipated period during which the advance will be outstanding.". (b) CONFORMING AMENDMENT.—The table of contents for the Trade Act of 1974 is amended by inserting, after the item relating to section 285, the following new items: "Sec. 286. Trade Adjustment Trust Fund. "Sec. 287. Imposition of additional fee.". President of U.S. 19 use 2397 note. SEC. 1428. IMPOSITION OF SMALL UNIFORM FEE ON ALL IMPORTS. (a) NEGOTIATIONS.— (1) The President shall— (A) undertake negotiations necessary to achieve changes in the General Agreement on Tariffs and Trade that would allow any country to impose a small uniform fee of not more than 0.15 percent on all imports to such country for the purpose of using the revenue from such fee to fund programs which directly assist adjustment to import competition, and (B) undertake negotiations with any foreign country that has entered into a free trade agreement with the united States under subtitle A or under section 102 of the Trade Act of 1974 to obtain the consent of such country to the imposition of such a fee by the United States. (2) In the report that is submitted under section 163 of the Trade Act of 1974 for 1989 and 1990, the President shall include a statement on the progress of negotiations conducted under paragraph (1). PUBLIC LAW 100-418-AUG. 23, 1988 102 STAT. 1255 (3)(A) On the first day after the date of enactment of this Act on which the General Agreement on Tariffs and Trade allows any country to impose a fee described in paragraph (1), the President shall submit to the Congress, and publish in the Federal Register, a written statement certifying such allowance. (B) On the first day after the date of enactment of this Act on which any foreign country described in paragraph (1)(B) consents to the imposition of such a fee by the United States, the President shall submit to the Congress, and publish in the Federal Register, a written statement certifying such consent. (4)If(A) the President does not submit to the Congress the written statement described in paragraph (3)(A) before the date that is 2 years after the date of enactment of this Act, and (B) the President determines on such date that the fee imposed by the amendment made by subsection (b) is not in the national economic interest, the President shall submit to the Congress, and publish in the Federal Register, written notice of such determination on such Federal Register, publication. date. publication. Federal Register, (5)(A) Any disapproval resolution that is introduced in the Senate or House of Representatives within the 90-day period beginning on the date that is 2 years after the date of enactment of this Act shall, for purposes of section 152 of the Trade Act of 1974 (19 U.S.C. 2192), be treated as a joint resolution described in section 152(a)(1)(A) of such Act. (B) For purposes of this part, the term "disapproval resolution" means a joint resolution of the two Houses of the Congress, the matter after the resolving clause of which is as follows: "That the Congress disapproves of the determination made by the President under section 1428(a)(4)(A) of the Omnibus Trade and Competitiveness Act of 1988.". Ot)) IMPOSITION OF FEE.—Chapter 5 of title II of the Trade Act of 1974 (19 U.S.C. 2391, et seq.), as amended by the preceding section of this Act, is further amended by adding at the end thereof the following new section: "SEC. 287. IMPOSITION OF ADDITIONAL FEE. 19 USC 2397. "(a) In addition to any other fee imposed by law, there is hereby imposed a fee on all articles entered, or withdrawn from warehouse, for consumption in the customs territory of the United States during any fiscal year. '(b)(1) The rate of the fee imposed by subsection (a) shall be a uniform ad valorem rate proclaimed by the President that is equal to the lesser of^ "(A) 0.15 percent, or "(B) the percentage that is sufficient to provide the funding necessary to— "(i) carry out the provisions of chapters 2 and 3, and "(ii) repay any advances made under section 286(e). "(2) The President shall issue a proclamation setting forth the President of U.S. rate of the fee imposed by subsection (a) by no later than the date that is 15 days before the first date on which a fee is imposed under subsection (a). "(3)(A) For each fiscal year succeeding the first fiscal year in President of U.S. which a fee is imposed under subsection (a), the President shall issue 102 STAT. 1256 PUBLIC LAW 100-418—AUG. 23, 1988 a proclamation adjusting the rate of the fee imposed by subsection (a) during such fiscal year to the ad valorem rate that meets the requirements of paragraph (1) for such fiscal year. "(B) Any proclamation issued under subparagraph (A) for a fiscal year shall be issued at least 30 days before the beginning of such fiscal year. "(cXD Except as otherwise provided in this subsection, duty-free treatment provided with respect to any article under any other provision of law shall not prevent the imposition of a fee with respect to such article by subsection (a). "(2) No fee shall be imposed by subsection (a) with respect to— "(A) any article (other than an article provided for in item 870.40, 870.45, 870.50, 870.55, or 870.60 of the Tariff Schedules of the United States) that is treated as duty-free under schedule 8 of the Tariff Schedules of the United States, or "(B) any article which has a value of less than $1,000.". SEC. 1429. STUDY OF CERTIFICATION METHODS. (a) I N GENERAL.—The Secretary of Labor, in consultation with the Secretary of Commerce, shall conduct a study of the methods (including, but not limited to, industry-wide certification) that could be used to expedite the certification of workers under subchapter A of chapter 2 of title II of the Trade Act of 1974. Ot)) REPORT.—By no later than the date that is 6 months after the date of enactment of this Act, the Secretary of Labor shall submit to the Congress a report on the study conducted under subsection (a). The report shall include the recommendations of the Secretary of Labor regarding the methods that are the subject of the study conducted under subsection (a). 19 u s e 2397 SEC. 1430. EFFECTIVE DATES. °°^' (a) I N GENERAL.—Except as otherwise provided by this section, the amendments made by this part shall take effect on the date of enactment of this Act. (b) ADDITIONAL FEE.— (1) Except as otherwise provided in this subsection, the amendment made by section 1428(b) shall apply (if at all) to any article entered, or withdrawn from warehouse for consumption, after the date that is 30 days after the earlier of— (A) the date on which the President submits to the Congress the written statement described in section 1428(aX3XA), (B) the date that is 2 years after the date of enactment of this Act, or (C) the date of the enactment of a disapproval resolution that passes both Houses of the Congress within the 90-day period beginning on the date that is 2 years after the date of enactment of this Act. (2) If the President determines on the date that is 2 years after the date of enactment of this Act that the fee imposed by the amendment made by section 1428(b) is not in the national economic interest, subparagraph (B) of paragraph (1) shall not be taken into account in applying the provisions of paragraph (1). (3) The amendment made by section 1428(b) shall apply (if at all) to the products of any foreign country described in section PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1257 1428(aXlXB) that are entered, or withdrawn from warehouse for consumption, after the later of— (A) the first date on which the fee imposed by such amendment applies with respect to products of foreign countries that are not described in section 1428(aXlXB), or (B) the date on which the President submits to the Congress the written statement described in section 1428(aX3XB) certifying the consent of such foreign country to the imposition of the fee. (c) TRUST FUND.—The amendments made by section 1427 shall take effect on the first date on which the amendment made by section 1428(b) applies with respect to any articles. (d) EuGiBiuTY OF WORKERS AND FIRMS.—The amendments made by sections 1421(b) and 1424(b) shall take effect on the date that is 1 year sifter the first date on which the amendment made by section 1428(b) applies with respect to any articles. (e) NOTIFICATION REQUIREMENTS.—The amendments made by section 1422 shall take effect on the date that is 30 days after the date of enactment of this Act. (f) TRAINING REQUIREMENT.—The amendments made by subsections (a), (bX2), and (cX2) of section 1423 and by paragraphs (2) and (3) of section 1424(c) shall take effect on the date that is 90 days after the date of enactment of this Act. (g) LIMITATION ON PERIOD FOR WHICH TRADE READJUSTMENT ALLOWANCES MAY B E MADE.—The amendment made by section 1425(a) shall not apply to with respect to any total separation of a worker from adversely affected emplo3nnent (within the meaning of section 247 of such Act) that occurs before the date of enactment of this Act if the application of such amendment with respect to such total separation would reduce the period for which such worker would (but for such amendment) be allowed to receive trade readjustment allowances under part I of subchapter B of chapter 2 of title II of the Trade Act of 1974. Subtitle E—National Security SEC. 1501. IMPORTS THAT THREATEN NATIONAL SECURITY. (a) IN GENERAL.—Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. 1862) is amended— (1) by striking out "subsection (b)" each place it appears in subsection (e) and inserting in lieu thereof "subsection (c)", (2) by redesignating subsections (c), (d), and (e) as subsections (d), (e), and (f), respectively, and (3) by striking out subsection (b) and inserting in lieu thereof the following new subsections: "(bXlXA) Upon request of the head of any department or agency, upon application of an interested party, or upon his own motion, the Secretary of (Commerce (hereafter in this section referred to as the 'Secretary') shall immediately initiate an appropriate investigation to determine the effects on the national security of imports of the article which is the subject of such request, application, or motion. "(B) The Secretary shall immediately provide notice to the Secretary of Defense of any investigation initiated under this section. "(2XA) In the course of any investigation conducted under this subsection, the Secretary shall— 102 STAT. 1258 Reports. Federal Register, publication. Regulations. President of U.S. PUBLIC LAW 100-418—AUG. 23, 1988 "(i) consult with the Secretary of Defense regarding the methodolc^cal and policy questions raised in any investigation initiated under paragraph (1), "(ii) seek information and advice from, and consult with, appropriate officers of the United States, and '(iii) if it is appropriate and after reasonable notice, hold public hearings or otherwise afford interested parties an opportunity to present information and advice relevant to such investigation. "(B) Upon the request of the Secretary, the Secretary of Defense shall provide the Secretary an assessment of the defense requirements of any article that is the subject of an investigation conducted under this section. "(3XA) By no later than the date that is 270 days after the date on which an investigation is initiated under paragraph (1) with respect to any article, the Secretary shall submit to the President a report on the findings of such investigation with respect to the effect of the importation of such article in such quantities or under such circumstances upon the national security and, based on such findings, the recommendations of the Secretary for action or inaction under this section. If the Secretary ^ d s that such article is being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security, the Secretary shall so advise the President in such report. "(B) Any portion of the report submitted by the Secretary under subparagraph (A) which does not contain classified information or proprietary information shall be published in the Federal Register. "(4) The Secretary shall prescribe such procedural regulations as may be necessary to carry out the provisions of this subsection. "(cXlXA) Within 90 days after receiving a report submitted under subsection (bX3XA) in which the Secretary finds that an article is being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security, the President shall— "(i) determine whether the President concurs with the finding of the Secretary, and "(ii) if the President concurs, determine the nature and duration of the action that, in the judgment of the President, must be taken to adjust the imports of the article and its derivatives so that such imports will not threaten to impair the national security. "(B) If the President determines under subparagraph (A) to take action to adjust imports of an article and its derivatives, the President shall implement that action by no later than the date that is 15 days after the day on which the President determines to take action under subparagraph (A). "(2) By no later than the date that is 30 days after the date on which the President makes any determinations under paragraph (1), the President shall submit to the Ck)ngress a written statement of the reasons why the President has decided to take action, or refused to take action, under psu-agraph (1). Such stetement shall be included in the report published under subsection (e). "(3XA)If"(i) the action taken by the President under paragraph (1) is the negotiation of an agreement which limits or restricts the importation into, or the exportetion to, the United Stetes of the article that threatens to impair national security, and PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1259 "(ii) either— "(I) no such agreement is entered into before the date that is 180 days after the date on which the President makes the determination under paragraph (IXA) to take such action, or "(ID such an agreement that has been entered into is not being carried out or is ineffective in eliminating the threat to the national security posed by imports of such article, the President shall take such other actions as the President deems necessary to adjust the imports of such article so that such imports will not threaten to impair the national security. The President Federal shall publish in the Federal Register notice of any additional actions Register, being taken under this section by reason of this subparagraph, publication. "(B) If— "(i) clauses (i) and (ii) of subpareigraph (A) apply, and "(ii) the President determines not to take any additional actions under this subsection, the President shall publish in the Federal Register such determination and the reasons on which such determination is based.". (b) REPORTS.— (1) Subsection (e) of section 232 of the Trade Expansion Act of 1962 (19 U.S.C. 1862), as redesignated by subsection (aX2), is amended to read as follows: "(dXD Upon the disposition of each request, application, or motion under subsection (b), the Secretary shall submit to the Congress, and publish in the Federal Register, a report on such disposition. "(2) The President shall submit to the Congress an annual report on the operation of the provisions of this section.". (2) Section 127 (c) of the Trade Act of 1974 (19 U.S.C. 1863) is repealed. Federal Register, publication. President of U.S. (c) ENFORCEMENT OF MACHINE TOOL IMPORT ARRANGEMENTS.— (1) The Secretary of Commerce is authorized to request the Secretary of the Tregisury to carry out such actions as may be necessary or appropriate to ensure the attainment of the objectives of the machine tool decision of the President on May 20, 1986, and to enforce any quantitative limitation, restriction, or other terms contained in related bilateral arrangements. Such actions may include, but are not limited to, requirements that valid export licenses or other documentation issued by a foreign government be presented as a condition for the entry into the United States of assembled and un£issembled machine tool products. (2) For purposes of this subsection, the term "related bilateral arrangement" means any arrangement, agreement, or understanding entered into or undertaken, or previously entered into or undertaken, by the United States and emy foreign country or customs union containing such quantitative limitations, restrictions, or other terms relating to the importation into, or exportation to, the United States of categories of assembled and unassembled machine tool products as may be necessary to implement such machine tool decision of May 20,1986. (d) APPUCATION OF AMENDMENTS.— 19 u s e 1862 (1) Except as otherwise provided under this subsection, the note, amendments made by this section shall apply with respect to investigations initiated under section 232(b) of the Trade Expansion Act of 1962 on or after the date of enactment of this Act. 102 STAT. 1260 President of U.S. i PUBLIC LAW 100-418—AUG. 23, 1988 (2) The provisions of subsection (c) of section 232 of the Trade Expansion Act of 1962, as amended by this section, shall apply with respect to any report submitted by the Secretary of Commerce to the President under section 2320?) of such Act after the date of enactment of this Act. (3) By no later than the date that is 90 days after the date of enactment of this Act, the President shall make the determinations described in section 232(cXlXA) of the Trade Expansion Act of 1962, as amended by this section, with respect to any report— (A) which was submitted by the Secretary of Commerce to the President under section 232(b) of such Act before the date of enactment of this Act, and (B) with respect to which no action has been taken by the President before the date of enactment of this Act. Subtitle F—Trade Agencies; Advice, Consultation, and Reporting Regarding Trade Matters PART 1—FUNCTIONS AND ORGANIZATION OF TRADE AGENCIES Subpart A—Office of the United States Trade Representative SEC. 1601. FUNCTIONS. (a) IN GENERAL.—Section 141(c) of the Trade Act of 1974 (19 U.S.C. 2171(c)) is amended— (1) by amending paragraph (1) to read as follows: "(cXD The United States Trade Representative shall— "(A) have primary responsibility for developing, and for coordinating the implementation of, United States international trade policy, including commodity matters, and, to the extent they are related to international trade policy, direct investment matters; "(B) serve as the principal advisor to the President on international trade policy and shall advise the President on the impact of other policies of the United States Government on international trade; "(C) have lead responsibility for the conduct of, and shall be the chief representative of the United States for, international trade negotiations, including commodity and direct investment negotiations, in which the United States participates; "(D) issue and coordinate policy guidance to departments and agencies on basic issues of policy and interpretation arising in the exercise of international trade functions, to the extent necessary to assure the coordination of international trade policy and consistent with any other law; "(E) act as the principal spokesman of the President on international trade; "(F) report directly to the President and the CJongress regarding, and be responsible to the President and the CJongress for the administration of, trade agreements programs; PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1261 "(G) advise the President and Congress with respect to nontariff barriers to international trade, international commodity agreements, and other matters which are related to the trade £^eements programs; "(H) be responsible for making reports to (Dongress with respect to matters referred to in subpareigraphs (C) and (F); "(I) be chairman of the interagency trade organization established under section 242(a) of the Trade Expansion Act of 1962, and shall consult with and be advised by such organization in the performance of his functions; and "(J) in addition to those functions that are delegated to the United States Trade Representative as of the date of the enactment of the Omnibus Trade and Competitiveness Act of 1988, be responsible for such other functions as the President may direct"; (2) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and (3) by inserting after paragraph (1) the following: "(2) It is the sense of Congress that the United States Trade Representative should— "(A) be the senior representative on any body that the President may establish for the purpose of providing to the President advice on overall economic policies in which international trade matters predominate; and "(B) be included as a participant in all economic summit and other international meetings at which international trade is a major topic", (b) UNFAIR TRADE PRACTICES.—Such section 141 is further amended— (1) by redesignating subsections (d), (e), and (f) as subsections (e), (f), and (g), respectively; and (2) by inserting after subsection (c) the following new subsection: "(dXD In canning out subsection (c) with respect to unfair trade practices, the United States Trade Representative shall— "(A) coordinate the application of interagency resources to specific unfair trade practice cases; "(B) identify, and refer to the appropriate Federal department or agency for consideration with respect to action, each act, policy, or practice referred to in the report required under section 181(b), or otherwise known to the United States Trade Representative on the basis of other available information, that may be an unfair trade practice that either— "(i) is considered to be inconsistent with the provisions of any trade agreement and has a significant adverse impact on United States commerce, or "(ii) has a significant adverse impact on domestic firms or industries that are either too smsdl or finemcially weak to initiate proceedings under the trade laws; "(C) identify practices having a significant adverse impact on United States commerce that the attainment of United States negotiating objectives would eliminate; £md "(D) identify, on a biennial basis, those United States Government policies and practices that, if eng£iged in by a foreign government, might constitute unfair trade practices under United States law. 19 u s e 2171. 102 STAT. 1262 PUBLIC LAW 100-418—AUG. 23, 1988 "(2) For purposes of carrying out paragraph (1), the United States Trade Representative shall be assisted by an interagency unfair trade practices advisory committee composed of the Trade Representative, who shall chair the committee, and senior representatives of the following agencies, appointed by the respective heads of those agencies: "(A) The Bureau of Economics and Business AfTairs of the Department of State. "(B) The United States and Foreign Commercial Services of the Department of Commerce. "(O The International Trade Administration (other than the United States and Foreign Commercial Service) of the Department of Commerce. "(D) The Foreign Agricultural Service of the Department of Agriculture. The United States Trade Representative may also request the advice of the United States International Trade Commission regarding the carrying out of paragraph (1). "(3) For purposes of this subsection, the term 'imfair trade practice' means any act, policy, or practice that— "(A) may be a subsidy with respect to which countervailing duties may be imposed under subtitle A of title VII; "(B) may result in the sale or likely sale of foreign merchandise with respect to which antidumping duties may be imposed under subtitle B of title VII; "(C) may be either an unfair method of competition, or an unfair act in the importation of articles into the United States, that is unlawful under section 337; or "(D) may be an act, policy, or practice of a kind with respect to which action may be taken under title III of the Trade Act of 1974.". Subpart B—United States International Trade Commission SEC. 1611. SERVICE ON COMMISSION FOR PURPOSES OF DETERMINING ELIGIBILITY FOR DESIGNATION AS CHAIRMAN. Section 330(cXAXi) of the Tariff Act of 1930 (19 U.S.C. 1330(cXAXi)) is amended by striking out "most recently appointed to" and inserting "with the shortest period of service on". SEC 1612. TREATMENT OF COMMISSION UNDER PAPERWORK REDUCTION ACT. Section 330 of the Tariff Act of 1930 (19 U.S.C. 1330) is amended by adding at the end thereof the following new subsection: "(f) The Commission shall be considered to be an independent r^ulatory agency for purposes of chapter 35 of title 44, United States Code.". SEC. 1613. TREATMENT OF COMMISSION. CONFIDENTIAL INFORMATION BY The first sentence of section 332(g) of the Tariff Act of 1930 (19 U.S.C. 1332(g)) is amended by striking out ", and shall report to Congress" and inserting ". However, the Commission may not release information which the (Commission considers to be confidential business information unless the party submitting the confidential PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1263 business information had notice, at the time of submission, that such information would be released by the Commission, or such party subsequently consents to the release of the information. The Commission shall report to Congress.". Reports. SEC. 1614. TRADE REMEDY ASSISTANCE OFFICE. Section 339 of the Tariff Act of 1930 (19 U.S.C. 1339) is amended— (1) by amending subsection (a)— (A) by striking out "a Trade" and inserting "a separate office to be known as the Trade", and (B) by striking out ", upon request, concerning—" and inserting "upon request and shall, to the extent feasible, provide assistance and advice to interested parties concerning—"; and (2) by amending subsection (b) to read as follows: "(b) The Trade Remedy Assistance Office, in coordination with each agency responsible for administering a trade law, shall provide technical and legal assistance and advice to eligible small businesses to enable them— "(1) to prepare and file petitions and applications (other than those which, in the opinion of the Office, are frivolous); and "(2) to seek to obtain the remedies and benefits available under the trade laws, including any administrative review or administrative appeal thereunder.". Subpart C—Interagency Trade Organization SEC. 1621. FUNCTIONS AND ORGANIZATION. (a) IN GENERAL.—Section 242 of the Trade Expansion Act of 1962 (19 U.S.C. 1872) is amended as follows: (1) Subsection (a) is amended to read as follows: "(aXD The President shall establish an interagency organization. President of U.S. "(2) The functions of the organization are— "(A) to assist, and make recommendations to, the President in carrying out the functions vested in him by the trade laws and to advise the United States Trade Representative (hereinafter in this section referred to as the Trade Representative') in carrying out the functions set forth in section 141 of the Trade Act of 1974; "(B) to assist the President, and advise the Trade Representative, with respect to the development and implementation of the international trade policy objectives of the United States; and "(C) to advise the President and the Trade Representative with respect to the relationship between the international trade policy objectives of the United States and other major policy areas which may significantly affect the overall international trade policy and trade competitiveness of the United States. "(3) The interagency organization shall be composed of the following: "(A) The Trade Representative, who shall be chairperson. "(B) The Secretary of (Commerce. "(C) The Secretary of State. "(D) The Secretary of the Treasury. "(E) The Secretary of Agriculture. "(F) The Secretary of Labor. The Trade Representative may invite representatives from other agencies, as appropriate, to attend particular meetings if subject 102 STAT. 1264 19 use 1872 note. PUBLIC LAW 100-418—AUG. 23, 1988 matters of specific functional interest to such agencies are under consideration. It shall meet at such times and with respect to such matters as the President or the Chairman shall direct.". (2) Subsection 0)) is amended by adding at the end thereof the following: "In carrying out its functions under this subsection, the organization shall take into account the advice of the congressional advisers and private sector advisory committees, as well as that of any conmiittee or other body established to advise the department, agency, or office which a member of the organization heads.". (b) SENSE OF CONGRESS.—It is the sense of Congress that the interagency organization established under subsection (a) should be the principal interagency forum within the executive branch on international trade policy matters. PART 2—ADVICE AND CONSULTATION REGARDING TRADE POLICY, NEGOTIATIONS, AND AGREEMENTS SEC. 1631. INFORMATION AND ADVICE FROM PRIVATE AND PUBLIC SECTORS RELATING TO TRADE POLICY AND AGREEMENTS. Section 135 of the Trade Act of 1974 (19 U.S.C. 2155) is amended to read as follows: President of U.S. -SEC. 135. INFORMATION AND ADVICE FROM PRIVATE AND PUBLIC SECTORS. "(a) I N GENERAL.— "(1) The President shall seek information and advice from representative elements of the private sector and the nonFederal governmental sector with respect to— "(A) n^otiating objectives and bargaining positions before entering into a trade agreement under this title or section 1102 of the Omnibus TVade and Competitiveness Act of 1988; "(B) the operation of any trade agreement once entered into; and "(C) other matters arising in connection with the development, implementation, and administration of the trade policy of the United States, including those matters referred to in Reorganization Plan Number 3 of 1979 and Executive Order Numbered 12188, and the priorities for actions thereunder. To the maximum extent feasible, such information and advice on negotiating objectives shall be sought and considered before the commencement of n^otiations. "(2) The President shall consult with representative elements of the private sector and the non-Federal governmental sector on the overall current trade policy of the United States. The consultations shall include, but are not limited to, the following elements of such policy: "(A) The principal multilateral and bilateral trade n^otiating objectives and the progress being made toward their achievement. "(B) The implementation, operation, and effectiveness of recently concluded multilateral and bilateral trade agreements and resolution of trade disputes. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1265 "(C) The actions taken under the trade laws of the United States and the effectiveness of such actions in achieving trade poUcy objectives. "(D) Important developments in other areas of trade for which there must be developed a proper policy response. "(3) The President shall take the advice received through consultation under paragraph (2) into account in determining the importance which should be placed on each major objective and negotiating position that should be adopted in order to achieve the overall trade policy of the United States. "(b) ADVISORY COMMITTEE FOR TRADE POUCY AND NEGOTIATIONS.— President of U.S. "(1) The President shall establish an Advisory Committee for Trade Policy and Negotiations to provide overall policy advice on matters referred to in subsection (a). The committee shall be composed of not more than 45 individuals and shall include representatives of non-Federal governments, labor, industry, agriculture, small business, service industries, retailers, and consumer interests. The committee shall be broadly representative of the key sectors and groups of the economy, particularly with respect to those sectors and groups which are affected by trade. Members of the committee shall be recommended by the United States Trade Representative and appointed by the President for a term of 2 years. An individual may be reappointed to committee for any number of terms. Appointments to the Committee shall be made without regard to political affiliation. "(2) The committee shall meet as needed at the call of the United States Trade Representative or at the call of two-thirds of the members of the committee. The chairman of the committee shall be elected by the committee from among its members. "(3) The United States Trade R^resentative shall make available to the committee such staff, information, personnel, and administrative services and assistance as it may reasonably require to c a n y out its activities. "(c) GENERAL COMMITTEES.— POUCY, SECTORAL, OR FUNCTIONAL ADVISORY "(1) The President may establish individual general policy advisory committees for industry, labor, agriculture, services, investment, defense, and other interests, as appropriate, to provide general policy advice on matters referred to in subsection (a). Such committees shall, insofar as is practicable, be representative of all industry, labor, agricultural, service, investment, defense, and other interests, respectively, including small business interests, and shall be organized by the United States Trade Representative and the Secretaries of Commerce, Defense, Labor, Agriculture, the Treasury, or other executive departments, as appropriate. The members of such committees shall be appointed by the United States Trade Representative in consultation with such Secretaries. "(2) The President shall establish such sectoral or functional President of U.S. advisory committees as may be appropriate. Such committees shall, insofar as is practicable, be representative of all industry, labor, agricultural, or service interests (including small business interests) in the sector or functional areas concerned. In organizing such committees, the United States Trade Representative and the Secretaries of Commerce, Labor, Agriculture, the Treasury, or other executive departments, as appropriate, shall— 102 STAT. 1266 President of U.S. PUBLIC LAW 100-418—AUG. 23, 1988 "(A) consult with interested private organizations; and "(B) take into account such factors as— "(i) patterns of actual and potential competition between United States industry and agriculture and foreign enterprise in international trade, "(ii) the character of the nontariff barriers and other distortions affecting such competition, "(iii) the necessity for reasonable limits on the number of such advisory committees, "(iv) the necessity that each conunittee be reasonably limited in size, and "(v) in the case of each sectoral committee, that the product lines covered by each committee be reasonably related. "(3) The President— "(A) may, if necessary, establish policy advisory committees representing non-Federal governmental interests to provide policy advice— "(i) on matters referred to in subsection (a), and "(ii) with respect to implementation of trade agreements, and "(B) shall include as members of committees established under subparagraph (A) representatives of non-Federal governmental interests if he finds such inclusion appropriate after consultation by the United States Trade Representative with such representatives. "(4) Appointments to each committee established under paragraph (1), (2), or (3) shall be made without regard to political affiliation. "(d) POLICY, TECHNICAL, AND OTHER ADVICE AND INFORMATION.— Ck>mmittees established under subsection (c) shall meet at the call of the United States Trade Representative and the Secretaries of Agriculture, Commerce, Labor, Defense, or other executive departments, as appropriate, to provide policy advice, technical advice and information, and advice on other factors relevant to the matters referred to in subsection (a). Reports. "(e) MEETING OF ADVISORY (COMMITTEES AT CONCLUSION OF NEGOTIATIONS.— "(1) The Advisory CJommittee for Trade Policy and Negotiations, each appropriate policy advisory committee, and each sectoral or functional advisory committee, if the sector or area which such committee represents is affected, shall meet at the conclusion of negotiations for each trade agreement entered into under section 1102 of the Omnibus Trade and Competitiveness Act of 1988, to provide to the President, to CJongress, and to the United States Trade Representative a report on such agreement. Each report that applies to a trade agreement entered into under section 1102 of the Omnibus Trade and (Competitiveness Act of 1988 shall be provided under the preceding sentence not later than the date on which the President notifies the (Congress under section 1103(aXlXA) of such Act of 1988 of his intention to enter into that agreement. "(2) The report of the Advisory (Committee for Trade Policy and Negotiations and each appropriate policy advisory committee shall include an advisory opinion as to whether and to what extent the agreement promotes the economic interests of the United States and achieves the applicable overall and principal PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1267 negotiating objectives set forth in section 1101 of the Omnibus Trade and Competitiveness Act of 1988, as appropriate. "(3) The report of the appropriate sectoral or functional committee under paragraph (1) shall include an advisory opinion as to whether the agreement provides for equity and reciprocity within the sector or within the functional area. "(f) APPUCATION OF FEDERAL ADVISORY COMMITTEE ACT.—The provisions of the Federal Advisory Committee Act apply— "(1) to the Advisory Committee for Trade Policy and Negotiations established under subsection (b); and "(2) to all other advisory committees which may be established under subsection (c); except that the meetings of advisory committees established under subsections (b) and (c) shall be exempt from the requirements of subsections (a) and (b) of sections 10 and 11 of the Federal Advisory Committee Act (relating to open meetings, public notice, public participation, and public availability of documents), whenever and to the extent it is determined by the President or his designee that such meetings will be concerned with matters the disclosure of which would seriously compromise the development by the United States Government of trade policy, priorities, negotiating objectives or bargaining positions with respect to matters referred to in subsection (a), and that meetings may be called of such special task forces, plenary meetings of chairmen, or other such groups made up of members of the committees established under subsections (b) and (c). "(g) TRADE SECRETS AND CONFIDENTIAL INFORMATION.— "(1) Trade secrets and commercial or financial information which is privileged or confidential, and which is submitted in confidence by the private sector or non-Federal government to officers or employees of the United States in connection with trade negotiations, may be disclosed upon request to— "(A) officers and employees of the United States designated by the United States Trade Representative; "(B) members of the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate who are designated as official advisers under section 161(a)(1) or are designated by the chairmen of either such committee under section 161(bX3XA) and staff members of either such committee designated by the chairmen under section 161(b)(3XA); and "(C) members of any committee of the House or Senate or any joint committee of Congress who are designated as advisers under section 161(aX2) or designated by the chairman of such committee under section 161(bX3)(B) and staff members of such committee designated under section 161(b)(3XB), but disclosure may be made under this subparagraph only with respect to trade secrets or commercial or financial information that is relevant to trade policy matters or negotiations that are within the legislative jurisdiction of such committee; for use in connection with matters referred to in subsection (a). "(2) Information other than that described in paragraph (1), and advice submitted in confidence by the private sector or nonFederal government to officers or employees of the United States, to the Advisory Committee for Trade Policy and Negotiations, or to any advisory committee established under subsec- 102 STAT. 1268 PUBLIC LAW 100-418—AUG. 23, 1988 tion (c), in connection with matters referred to in subsection (a), may be disclosed upon request to— "(A) the individuals described in paragraph (1); and "(B) the appropriate advisory committee established under this section. "(3) Information submitted in confidence by officers or employees of the United States to the Advisory Committee for Trade Policy and Negotiations, or to any advisory committee established under subsection (c), may be disclosed in accordance with rules issued by the United States Trade Representative and the Secretaries of Commerce, Labor, Defense, Agriculture, or other executive departments, as appropriate, after consultation with the relevant advisory committees established under subsection (c). Such rules shall define the categories of information which require restricted or confidential handling by such committee considering the extent to which public disclosure of such information can reasonably be expected to prejudice the development of trade policy, priorities, or United States negotiating objectives. Such rules shall, to the maximum extent feasible, permit meaningful consultations by advisory committee members with persons affected by matters referred to in subsection (a). "(h) ADVISORY COMMITTEE SUPPORT.—The United States Trade Representative, and the Secretaries of Commerce, Labor, Defense, Agriculture, the Treasury, or other executive departments, as appropriate, shall provide such staff, information, personnel, and administrative services and assistance to advisory committees established under subsection (c) as such committees may reasonably require to c a n y out their activities, "(i) CONSULTATION WITH ADVISORY COMMITTEES; PROCEDURES; NONACCEPTANCE OF COMMITTEE A D V I C E OR RECOMMENDATIONS.—It shall be the responsibility of the United States Trade Representative, in conjunction with the Secretaries of Commerce, Labor, Agriculture, the Treasury, or other executive departments, as appropriate, to adopt procedures for consultation with and obtaining information and advice from the advisory committees established under subsection (c) on a continuing and timely basis. Such consultation shall include the provision of information to each advisory committee as to— "(1) significant issues and developments; and "(2) overall negotiating objectives and positions of the United States and other parties; with respect to matters referred to in subsection (a). The United States Trade Representative shall not be bound by the advice or recommendations of such advisory committees, but shall inform the advisory committees of significant departures from such advice or recommendations made. In addition, in the course of consultations with the Congress under this title, information on the advice and information provided by advisory committees shall be made available to congressionsd advisers. President of U.S. "(j) PRIVATE ORGANIZATIONS OR GROUPS.—In addition to any advisory committee established under this section, the President shall provide adequate, timely and continuing opportunity for the submission on an informal basis (and, if such information is submitted under the provisions of subsection (g), on a confidential basis) by private organizations or groups, representing government, labor, industry, agriculture, small business, service industries, consumer PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1269 interests, and others, of statistics, data and other trade information, as well as policy recommendations, pertinent to any matter referred to in subse^ion (a). "(k) SCOPE OP PARTICIPATION BY MEMBERS OF ADVISORY COMMIT- TEES.—Nothing contained in this section shall be construed to authorize or permit any individual to participate directly in any n^otiation of any matters referred to in subsection (a). To the maximum extent practicable, the members of the committees established under subsections O?) and (c), and other appropriate parties, shall be informed and consulted before and during any such n^otiations. They may be designated as advisors to a negotiating del^ation, and may be permitted to participate in international meetings to the extent the head of the United States del^ation deems appropriate. However, they may not speak or n^otiate for the United States. "(1) ADVISORY COBIMITTEES ESTABLISHED BY DEPARTMENT OF AGRI- CULTURE.—^The provisions of title XVHI of the Food and Agriculture Act of 1977 (7 U.S.C. 2281 et seq.) shall not apply to any advisory committee established under subsection (c). "(m) NON-FEDERAL GOVERNMENT DEFINED.—As used in this section, the term 'non-Federal government' means— "(1) any State, territory, or possession of the United States, or the ENstrict of Columbia, or any political subdivision thereof; or "(2) any agency or instrumentality of any entity described in paragraph (1).". SEC. 1632. CONGRESSIONAL UAISON REGARDING TRADE POLICY AND AGREEMENTS. Section 161 of the Trade Act of 1974 (19 U.S.C. 2211) is amended to read as follows: '^EC. 161. CONGRESSIONAL NEGOTIATIONS. ADVISERS FOR TRADE POLICY AND "(a) SELECTION.— "(1) At the b^inning of each regular session of Congress, the Speaker of the House of Representatives, upon the recommendation of the chairman of tiie Committee on Wajrs and Means, shall select 5 members (not more than 3 of whom are members of the same political party) of such committee, and the President pro tempore of the Senate, upon the recommendation of the chmrman of the Committee on Finance, shall select 5 members (not more than 3 of whom are members of the same political party) of such committee, who shall be designated congressional advisers on trade policy and n^otiations. They shall provide advice on the development of trade policy ana priorities for the implementation thereof. They shall aLso be accredited by the United States Trade Representative on behalf of the President as official advisers to the United States del^ations to international conferences, meetings, and n^otiating sessions relating to trade agreements. "(2XA) In addition to the advisers designated under paragraph (1) from the (Dommittee on Ways and Means and the Committee on Finance— "(i) the Speaker of the House may select additional members of the House, for designation as congressional advisers regarding specific trade policy matters or n^otiations, from any other committee of the House or joint committee 102 STAT. 1270 PUBLIC LAW 100-418—AUG. 23, 1988 • of Congress that has jurisdiction over legislation likely to be affected by such matters or negotiations; and "(ii) the President pro tempore of the Senate may select additional members of the Senate, for designation as congressional advisers regarding specific trade policy matters or negotiations, from any other committee of the Senate or joint committee of Congress that has jurisdiction over legislation likely to be affected by such matters or negotiations. Members of the House and Senate selected as congressional advisers under this subparagraph shall be accredited by the United States Trade Representative. "(B) Before designating any member under subparg^aph (A), the Speaker or the President pro tempore shall consult with— "(i) the chairman and ranking member of the Committee on Ways and Means or the Committee on Finance, as appropriate; and "(ii) the chairman and ranking minority member of the committee from which the member will be selected. "(C) Not more than 3 members (not more than 2 of whom are members of the same political party) may be selected under this paragraph £is advisers from any committee of Congress. "(b) BRIEFING.— "(1) The United States Trade Representative shall keep each official adviser designated under subsection (a)(1) currently informed on matters affecting the trade policy of the United States and, with respect to possible agreements, negotiating , objectives, the status of negotiations in progress, and the nature of any changes in domestic law or the administration thereof which may be recommended to Congress to carry out any trade agreement or any requirement of, amendment to, or recommendation under, such agreement. "(2) The United States Treide Representative shall keep each official adviser designated under subsection (aX2) currently informed regarding the trade policy matters and negotiations i with respect to which the adviser is designated. "(3XA) The chairmen of the Committee on Ways and Means and the Committee on Finance may designate members (in addition to the official advisers under subsection (aXD) and staff members of their respective committees who shall have access to the information provided to official advisers under paragraph (1). "(B) The Chairman of any committee of the House or Senate 1 or any joint committee of Congress from which official advisers are selected under subsection (aX2) may designate other members of such committee, and staff members of such committee, who shall have access to the information provided to official advisers under paragraph (2). "(c) COMMITTEE CONSULTATION.—The United States Trade Representative shall consult on a continuing basis with the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, and the other appropriate committees of the House and Senate on the development, implementation, and administration of overall trade policy of the United States. Such consultations shall include, but are not limited to, the following elements of such policy: PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1271 "(1) The principal multilateral and bilateral negotiating objectives and the progress being made toward their achievement. "(2) The implementation, administration, and effectiveness of , recently concluded multilateral and bilateral trade agreements and resolution of trade disputes. "(3) The actions taken, and proposed to be taken, under the trade laws of the United States and the effectiveness, or anticipated effectiveness, of such actions in achieving trade policy objectives. "(4) The important developments and issues in other areas of trade for which there must be developed proper policy response. When necessary, meetings shall be held with each Committee in executive session to review matters under negotiation.". PART 3—ANNUAL REPORTS AND NATIONAL TRADE POLICY AGENDA SEC. 1641. REPORTS AND AGENDA. Section 163 of the Trade Act of 1974 (19 U.S.C. 2213) is amended to read as follows: "SEC. 163. REPORTS. "(a) ANNUAL REPORT ON TRADE AGREEMENTS PROGRAM AND NATIONAL TRADE POUCY AGENDA.— "(1) The President shall submit to the Congress during each President of U.S. calendar year (but not later than March 1 of that year) a report on— "(A) the operation of the trade agreements program, and the provision of import relief and adjustment assistance to workers and firms, under this Act during the preceding calendar year; and "(B) the national trade policy agenda for the year in which the report is submitted. "(2) The report shall include, with respect to the matters referred to in paragraph (IXA), information regarding— "(A) new trade negotiations; "(B) changes made in duties and nontariff barriers and other distortions of trade of the United States; "(C) reciprocal concessions obtained; "(D) changes in trade agreements (including the incorporation therein of actions taken for import relief and compensation provided therefor); "(E) the extension or withdrawal of nondiscriminatory treatment by the United States with respect to the producte of foreign countries; "(F) the extension, modification, withdrawal, suspension, or limitation of preferential treatment to exports of developing countries; "(G) the results of actions to obtain the removal of foreign trade restrictions (including discriminatory restrictions) against United States exports and the removal of foreign practices which discriminate against United States service industries (including transportation and tourism) and investment; "(H) the measures being taken to seek the removal of other significant foreign import restrictions; 102 STAT. 1272 Classified information. President of U.S. PUBLIC LAW 100-418—AUG. 23, 1988 "(I) each of the referrals made under section 141(dXlXB) and any action taken with respect to such referral; "(J) other information relating to the trade agreements p n ^ a m and to the agreements entered into thereunder; and "(K) the number of applications filed for adjustment assistance for workers and firms, the number of such applications which were approved, and the extent to which adjustment assistance has been provided under such approved applications. "(3XA) The national trade policy agenda required under paragraph (IXB) for the year in which a report is submitted shall be in the form of a statement of— "(i) the trade policy objectives and priorities of the United States for the year, and the reasons therefor; "(ii) the actions proposed, or anticipated, to be undertaken during the year to achieve such objectives and priorities, including, but not limited to, actions authorized under the trade laws and negotiations with foreign countries; "(iii) £uay proposed l^islation necessary or appropriate to achieve any of such objectives or priorities; and "(iv) the progress that was made during the preceding year in achieving the trade policy objectives and priorities included in the statement provided for that year under this paragraph. "(B) The President may separately submit any information referred to in subparagraph (A) to the Congress in confidence if the President considers confidentiality appropriate. "(C) Before submitting the national trade policy agenda for any year, the President shall seek advice from the appropriate advisory committees established under section 135 and shall consult with the appropriate committees of the Congress. "(D) The United States Trade Representative (hereafter referred to in this section as the 'Trade Representative') and other appropriate officials of the United States Government shall consult periodically with the appropriate committees of the Congress regarding the annual objectives and priorities set forth in each national trade policy agenda with respect to— "(i) the status and results of the actions that have been undertaken to achieve the objectives and priorities; and "(ii) any development which may require, or result in, changes to any of such objectives or priorities. *(b) ANNUAL TRADE PROJECTION REPORT.— "(1) In order for the Congress to be informed of the impact of foreign trade barriers and macroeconomic factors on the balance of trade of the United States, the Trade Representative and the Secretary of the Treasury shall jointly prepare and submit to the Ck)mmittee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives (hereafter referred to in this subsection as the 'Committees') on or before March 1 of each year a report which consists of— "(A) a review and analysis of— "(i) the merchandise balance of trade, "(ii) the goods and services balance of trade, "(iii) the balance on the current account, -' "(iv) the external debt position, "(v) the exchange rates. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1273 "(vi) the economic growth rates, "(vii) the deficit or surplus in the fiscal budget, and "(viii) the impact on United States trade of market barriers and other unfair practices, of countries that are major trading partners of the United States, including, as appropriate, groupings of such countries; "(B) projections for each of the economic factors described in suljparagraph (A) (except those described in clauses (v) and (viii)) for each of the countries and groups of countries referred to in subparagraph (A) for the year in which the report is submitted and for the succeeding year; and "(C) conclusions and recommendations, based upon the projections referred to in subparagraph (B), for policy changes, including trade policy, exchange rate policy, fiscal policy, and other policies that should be implemented to improve the outlook. "(2) To the extent that subjects referred to in paragraph (1) (A), (B), or (C) are covered in the national trade policy agenda required under subsection (aXlXB) or in other reports required by this Act or other law, the Trade Representative and the Secretary of the Treasury may, as appropriate, draw on the information, analysis, and conclusions, if any, in those reports for the purposes of preparing the report required by this subsection. "(3) The Trade Representative and the Secretary of the Treasury shall consult with the Chairman of the Board of Governors of the Federal Reserve System in the preparation of each report required under this subsection. "(4) The Trade Representative and the Secretary of the Treasury may separately submit any information, analysis, or conclusion referred to in paragraph (1) to the Committees in confidence if the Trade Representative and the Secretary consider confidentiality appropriate. "(5) After submission of each report required under paragraph (1), the Trade Representative and the Secretary of the Treasury shall consult with each of the Committees with respect to the report. "(c) ITC REPORTS.—The United States International Trade Commission shall submit to the Congress, at least once a year, a factual report on the operation of the trade agreements program.". Subtitle G—Tariff Provisions PART 1—AMENDMENTS TO THE TARIFF SCHEDULES OF THE UNITED STATES SEC. 1701. REFERENCE. Whenever in this part an amendment or repeal is expressed in terms of an amendment to, or repeal of, a schedule, headnote, item, the Appendix, or other provision, the reference shall be considered to be made to a schedule, headnote, item, the Appendix, or other provision of the Tariff Schedules of the United States. 102 STAT. 1274 PUBLIC LAW 100-418—AUG. 23, 1988 Subpart A—Permanent Changes in Tariff Treatment SEC. 17)1. BROAD WOVEN FABRICS OF MAN-MADE FIBERS. (a) IN GENERAL.—Subpart E of part 3 of schedule 3 is amended by striking out item 338.50 and inserting the following new items with the article description for item 338.60 having the same degree of indentation as the article description for item 338.40: 338.60 338.70 338.80 Containing 85% or more by weight of continuous man-made fibers 17% ad val. Other: Weighing not more than 5 oz. per square yard 17% ad val. Other 17% ad val. 1.5% ad val. (I) 81% ad val. i.5% ad val. (I) 1.5% ad val. (I) 81% ad val. 81% ad val. 0?) STAGED RATE REDUCTION.—Any staged rate reduction of a rate of duty set forth in item 338.50 of the Tariff Schedules of the United States (as in effect before the date of enactment of this Act) that WEIS proclaimed by the President before the date of enactment of this Act and would otherwise take effect after the date of enactment of this Act shall apply to the corresponding rates of duty set forth in items 338.60, 338.70, and 338.80 of such Schedules. SEC. 1712. NAPHTHA AND MOTOR FUEL BLENDING STOCKS. Part 10 of schedule 4 is amended— (1) by amending headnote 1 by inserting "motor fuel blending stocks," immediately after "except"; (2) by amending headnote 2— (A) by striking out "and" at the end of subdivision (a); (B) by striking out the period at the end of subdivision (b) and inserting "; and"; and (C) by adding at the end thereof the following: "(c) 'Motor fuel blending stock' (item 475.27) means any product (except naphthas provided for in item 475.35) derived primarily from petroleum, shale oil, or natural gas, whether or not containing additives, to be used for direct blending in the manufacture of motor fuel."; (3) by inserting in numerical sequence the following new item with an article description having the same degree of indentation as the article description for item 475.30: I 475.27 I Motor fuel blending stocks ....| 1.25^ per gal. 2M per gal. (4) by amending 475.30 by striking out "fuel)" and inserting "fuel or motor fuel blending stocks)"; and (5) by amending 475.35 by striking out "fuel)" and inserting in lieu thereof "fuel or motor fuel blending stocks)". SEC. 1713. WATCHES AND WATCH COMPONENTS. Headnote 4 of subpart E of part 2 of schedule 7 is amended to read as follows: "4. Special Marking Requirements: Any movement or case provided for in this subpart, whether imported separately or attached to any article provided for in this subpart, shall not be permitted to be entered unless conspicuously and indelibly marked by cutting. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1275 die-sinking, engraving, stamping, or mold-marking (either indented or raised), as specified below: "(a) Watch movements shall be marked on one or more of the bridges or top plates to show— "(i) the name of the country of manufacture; "(ii) the name of the manufacturer or purchaser; and "(iii) in words, the number of jewels, if any, serving a mechanical purpose as frictional bearings. "(b) Clock movements shall be marked on the most visible part of the front or back plate to show— "(i) the name of the country of manufacture; "(ii) the name of the manufacturer or purchaser; and "(iii) the number of jewels, if any. "(c) Watch cases shall be marked on the inside or outside of the back case to show— "(i) the name of the country of manufacture; and "(ii) the name of the manufacturer or purchaser. "(d) C;iock cases provided for in this subpart shall be marked on the most visible part of the outside of the back to show the name of the country of manufacture.". SEC. 1714. SLABS OF IRON OR STEEL. Headnote 3(c) to subpart B of part 2 of schedule 6 is amended by striking out "and not over 6 inches". SEC. 1715. CERTAIN WORK GLOVES. (a) Headnote 5(a) to schedule 3 is amended by striking out "(except subpart A)" and inserting in lieu thereof "(except subparts A and O". (b) Headnote 1 to subpart C of part 1 of schedule 7 of the Tariff Schedules of the United States is amended— (1) by striking out "and" at the end of subdivision (b), (2) by striking out the period at the end of subdivision (c) and inserting in lieu thereof "; and", and (3) by adding after subdivision (c) the following new subdivision: "(d) gloves which are— '(i) other than gloves with fourchettes, and "(ii) constructed of a textile fabric coated, filled, impregnated, • or laminated, in whole or in part, with rubber or plastics and cut-and-sewn, shall be r^arded as gloves of textile materials.". SEC. 1716. DUTY-FREE IMPORTATION OF HATTER'S FUR (a) IN GENERAL.—Subpart D of part 15 of schedule 1 is amended— (1) by striking out "use, and carroted furskins" in item 186.20 and inserting in lieu thereof "use", (2) by striUng out "15% ad val." in item 186.20 and inserting in lieu thereof "Free", (3) by striking out "Free (A,E) 4.8% ad val. (0" in item 186.20, and (4) by inserting after item 186.20 the following new item with the article description having the same d^ree of indentation as the article description in item 186.20: 186.22 Carroted furskins. 15% ad. val. Free (A.E) 4.8% ad val. (I) 35% ad val. 102 STAT. 1276 PUBLIC LAW 100-418—AUG. 23, 1988 (b) STAGED RATE REDUCTION.—Any staged rate reduction of a rate of duty set forth in item 186.20 of the Tariff Schedules of the United States that was proclaimed by the President before the date of enactment of this Act and would otherwise take effect after the date of enactment of this Act shall apply to the corresponding rate of duty set forth in item 186.22 of such Schedules. SEC. 1717. EXTRACORPOREAL SHOCK WAVE LITHOTRIPTERS. Item 709.15 is amended by inserting "other than extracorporeal shock wave lithotripters," before "and". SEC. 1718. SALTED AND DRIED PLUMS. (a) IN GENERAL.—Subpart B of part 9 of schedule 1 is amended by striking out item 149.28 and inserting in lieu thereof the following items with the article descriptions having the same degree of indentation as the article description in item 149.26: 149.27 149.29 Soaked in brine and dried 2^ per lb. Otherwise prepared or preserved 17.5% ad val. Free (E,I) 2i per lb. Free(E) 5.6% ad val. (I) 35% ad val (b) STAGED RATE REDUCTION.—Any staged rate reduction of a rate of duty set forth in item 149.28 of the Tariff Schedules of the United States that was proclaimed by the President before the date of enactment of this Act and would otherwise take effect after the date of enactment of this Act shall apply to the corresponding rates of duty set forth in items 149.27 and 149.29 of such Schedules, SEC. 1719. TELEVISION APPARATUS AND PARTS. (a) PERMANENT TREATMENT.—The headnotes to part 5 of schedule 6 are amended— (1) by striking out "assembled," in subparagraph (a) of headnote 3 and inserting in lieu thereof "assembled in its cabinet,"; (2) by redesignating headnotes 4, 5, and 6 as headnotes 5, 6, and 7, respectively; and (3) by inserting after headnote 3 the following new headnote: "4. Picture tubes imported in combination with, or incorporated into, other articles are to be classified in items 687.35 through 687.44, inclusive, unless they are— "(i) incorporated into complete television receivers, as defined in headnote 3; "(ii) incorporated into fully assembled units such as word processors, ADP terminals, or similar articles; "(iii) put up in kits containing all the parts necessary for assembly into complete television receivers, as defined in headnote 3; or "(iv) put up in kits containing all the parts necessary for assembly into fully assembled units such as word processors, ADP terminals, or similar articles.". (b) TEMPORARY TREATMENT.— (1) Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 102 STAT. 1277 PUBLIC LAW 100-418—AUG. 23, 1988 912.16 Television picture tubes, color, having a video display diagonal of less than 12 inches (provided for in item 687.35, part 5, schedule 6) Free No change On or before 12/31/90 (2) Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 912.19 Television picture tubes, color, having a video display diagonal of 30 inches and over (provided for in item 687.35, part 5, schedule 6) Free No change On or before 9/30/88 SEC. 1720. CASEIN. (a) HUMAN FOOD AND ANIMAL FEED USE.—Subpart D of part 4 of schedule 1 is amended by adding at the end thereof the following new items with the superior heading having the same degree of indentation as the article description in item 118.45: Casein, caseinates, dried milk: 118.50 118.55 118.60 and Free fkM Dried milk (described in items 115.45, 115.50, 115.55, and 118.05) which contains not over 5.5 percent by weight of butterfat and which is mixed with other ingredients, including but not limited to sugar, if such mixtures contain over 16 percent milk solids by weight, are capable of being further processed or mixed with similar or other ingredients and are not prepared for marketing to the retail consumers in the identical form and package in which imported Other 1.3^ per lb. 0.2^ per lb. Free (A,E,I) Free (A,E,I) 5.5t per lb. 5.5< per lb. (b) INDUSTRIAL USE.—Subpart B of part 13 of schedule 4 is amended by striking out items 493.12, 493.14, and 493.17 and the superior heading thereto. SEC. 1721. TARIFF TREATMENT OF CERTAIN TYPES OF PLYWOOD. Headnote 1 of part 3 of schedule 2 is amended— 102 STAT. 1278 PUBLIC LAW 100-418—AUG. 23, 1988 (1) in paragraph (b) by inserting immediately before the semicolon at the end thereof the following: "or any edge of which has been tongued, grooved, lapped, or otherwise worked"; (2) in paragraph (c) by inserting immediately before the semicolon at the end thereof the following: "or any edge of which has been tongued, grooved, lapped, or otherwise worked"; and (3) in paragraph (e) by inserting before "chiefly" the following: "other than pl)^wood, wood-veneer panels, or cellular panels,". SEC. 1722. IMPORTATION OF FURSKINS. Headnote 4 to subpart B of part 5 of schedule 1 is repealed. SEC. 1723. GRAPEFRUIT. Subpart A of part 12 of schedule 1 is amended— (1) by inserting after item 165.29 the following new items with a superior heading having the same degree of indentation as item 165.25: 165.31 165.34 Grapefruit: Not concentrated and not made from a juice having a degree of concentration of 1.5 or more (£is determined before correction to the nearest 0.5 degree) 20<t per gal. Other 35(t per gal. Free (E) Free (E) 70<t per gal. 70^ per gal. and (2) by redesignating items 165.32 and 165.36 as items 165.37 and 165.38, respectively. SEC. 1724. SILICONE RESINS AND MATERIALS. Part 4 of schedule 4 is amended— (1) by amending subpart A— (A) by striking out "provided for in part IC" in headnote 1 and inserting ", other than silicones, provided for in part 1", and (B) by amending headnote 2 to read as follows: "2. (a) For purposes of this subpart, the term 'synthetic plastics materials'— "(i) embraces products formed by the condensation, polymerization, or copolymerization of organic chemicals and to which an antioxidant, color, dispersing agent, emulsifier, extender, filler, pesticide, plasticizer, or stabilizer may have been added; and "(ii) includes silicones (including fluids, resins, elastomers, and copolymers) whether or not such materials are solid in the finished articles. "(b) The products referred to in subdivision (a) contain as an essential ingredient an organic substance of high molecular weight; and, except as provided in subdivision (a)(ii), are capable, at some stage during processing into finished articles, of being molded or shaped by flow and are solid in the finished article. The term includes, but is not limited to, such products derived from esters of acrylic or methacrylic acid; vinyl acetate, vinyl chloride resins, polyvinyl alcohol, acetals, butyral, formal resins, poljrvinyl ether and ester resins, and polyvinylidene chloride resins; urea and amino resins; polyethylene, polypropylene, and other polyalkene resins; PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1279 siloxanes, silicones, and other organo-silicon resins; alkyd, acrylonitrile, allyl, and formaldehyde resins, and cellulosic plastics materials. These synthetic plastics materials may be in solid, semi-solid, or liquid condition such as flakes, powders, pellets, granules, solutions, emulsions, and other basic crude forms not further processed.", (C) by inserting after item 445.54 the following new item with the article description having the same degree of indentation as the article description for item 445.54: 445.55 Silicone resins and materials 3% ad val. Free (A,E,I) 25% ad val. and (D) by redesignating item 445.56 as item 445.60; and (2) by amending headnote 2 to subpart B by adding at the end thereof the following: "(c) For purposes of the Tariff Schedules, the term 'rubber' does not include silicones.". Subpart B—Temporary Changes in Tariff Treatment SEC. 1731. COLOR COUPLERS AND COUPLER INTERMEDIATES. Subpart B of part 1 of the Appendix is amended— (1) by inserting ", but excluding 6,7-dihydroxy-2-naphthalene sulfonic acid sodium salt provided for in item 403.57," after "schedule 4" and before the parenthesis in item 907.10; and (2) by striking out "9/30/85" in each of items 907.10 and 907.12 and inserting in lieu thereof "12/31/90". SEC. 1732. POTASSIUM 4-SULFOBENZOATE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 906.26 SEC. 1733. p-Sulfobenzoic acid, potassium salt (provided for in item 404.28, part IB, schedule 4) Free No change On or before 12/31/90 2,2'-OXAMIDOBIS[ETHYL-3-(3,5-DI TERT.BUTYL-4-HYDROXYPHENYDPROPIONATE]. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following item: 907.09 2,2'-Oxamidobis[ethyl-3-(.3,5-ditert-butyl-4hydroxyphenyl) propionate] (provided for in item 405.34, part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1734. 2,4-DICHLORO-5-SULFAMOYLBENZOIC ACID. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 102 STAT. 1280 PUBLIC LAW 100-418—AUG. 23, 1988 906.48 2,4-Dichloro-5sulfamoylbenzoic acid (provided for in item 406.56, part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1735. DERIVATIVES OF N-[4.(2-HYDROXY.3-PHENOXYPROPOXY)PHENYLIACETAMIDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 907.11 Mixtures containing derivatives of N-I4-(2-hydroxy3-phenoxypropoxy)phenyI] acetamide (provided for in item 407.19, part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1736. CERTAIN KNITWEAR FABRICATED IN GUAM. (a) IN GENERAL.—Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 905.45 Sweaters that— (i) do not contain foreign materials in excess of the percentage of total value limitation contained in general headnote 3(a), and PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1281 (ii)are assembled in Guam, exclusively by United States citiiens, nationals, or resident ali«is,by joining together (by completely sewing, looping, linking, or other means of attaching) at least 5 otherwise completed nugor knitrtocomponent parts of foreign origin, if entered bdbre the aggregate quantity of such sweaters that is entered during any 12-month period after October 31, 1985, exceeds the duty-free quantity for that period Free On or brfore 10/31/92 (b) DUTY-FREE QUANTITY.—^The headnotes to subpart B of part 1 of the Appendix are amended by adding at the end tiiereof the following new headnote: "3. For purposes of item 905.45, the term 'duty-free quantity' means— "(a) for the 12-month period ending October 31, 1986, 161,600 dozen; and "(b) for any 12-month period thereafter, an amount equal to 101 percent of the duty-free quantity for the preceding 12-month period.". SEC 1737.3,5-DINITRO-O-TOLUAMIDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 102 STAT. 1282 PUBLIC LAW 100-418—AUG. 23, 1988 906.42 3,5-Dinitro-otoluamide (provided for in item 411.95, part IC, schedule 4) Free No change On or before 12/31/90 SEC. 1738. SECONDARY-BUTYL CHLORIDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 907.55 Secondary-butyl chloride (provided for in item 429.47, part 2D. schedule 4) Free No change On or before 12/31/90 SEC. 1739. CERTAIN NONBENZENOID VINYL ACETATE-VINYL CHLORIDEETHYLENE TERPOLYMERS. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following item: 907.83 Nonbenzenoid vinyl acetatevinyl chlorideethylene terpolymers, containing by weight less than 50 percent derivatives of vinyl acetate (provided for in item 445.48, part 4A, schedule 4) Free No change On or before 12/31/90 SEC. 1740. DUTY-FREE ENTRY OF PERSONAL EFFECTS AND EQUIPMENT OF PARTICIPANTS AND OFFICIALS INVOLVED IN THE lOTH PAN AMERICAN GAMES. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 102 STAT. 1283 PUBLIC LAW 100-418—AUG. 23, 1988 915.20 Personal effects of aliens who are participants in or officials of the Tenth Pan American Games, or who are accredited members of delegations thereto, or who are members of the immediate families of any of the foregoing persons, or who are their servants; equipment for use in connection with such games; and other related articles as prescribed in regulations issued by the Secretary of the Treasury Free FVee On or before 9/30/87 SEC. 1741. CARDING AND SPINNING MACHINES. (a) IN GENERAL.—Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 912.03 Carding and spinning machines specially designed for wool, other than machines specially designed for the manufacture of combed wool (worsted) yams (provided for in item 670.04, part4E, schedule 6) Free No change On or before 12/31/90 (b) PARTS.—The headnote to subpart E of part 4 of schedule 6 is amended by striking out "item 912.04" each place it appears and inserting m lieu thereof "item 912.03 or 912.04". SEC. 1742. DICOFOL AND CERTAIN MIXTURES. (a) DicoFOL.—Item 907.15 of the Appendix is amended to read as follows: PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1284 907.15 l.l-Bis(4chlorophenyl)2.2,2trichloroethanol (dicofol) (provided for in item 408.28, part IC, schedule 4) Free No change On or before 12/31/90 Ot)) MIXTURES OF DICOFOL AND APPUCATION ADJUVANTS.—Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new items: 907.27 Mixtures of 1,1bis(4chlorophenyl)2,2,2trichloroethanol (dicofol) and application adjuvants (provided for in item 408.36, part IC, schedule 4) Free No change On or before 12/31/90 SEC. 1743. SILK YARN. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 905.25 Yams of silk (provided for in item 308.51, part ID, schedule 3) Free No change On or before 12/31/90 SEC. 1744. TERFENADONE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 907.48 UU1.1Dimethylethyl)phenylM(hydroxydiphenyl-methyll-piperidinyl)-lbutanone (provided for in item 406.42, part IB, schedule 4) Free No change On or before 12/31/90 SBC. 1745. FLUAZIFOP-P-BUTYL. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 102 STAT. 1285 PUBLIC LAW 100-418—AUG. 23, 1988 907.49 Butyl 2^4<5trifluoromethyl2-pryidinylozy>phenoxy]propanoate (provided for in item 408.23, part IC, schedule 4) No change Free SEC. 1746. PARTS OF INDIRECT MACHINES. PROCESS On or before 12/31/90 ELECTROSTATIC COPYING Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 912.18 Parts, not including photoreceptors or assemblies containing photoreceptors, of indirect process electrostatic copying machines, which machines reproduce the original image onto the copy material by electrostatic transference to and from an intermediate (provided for in item 676.56, part4G, schedule 6) Free No change On or before 12/31/90 SEC. 1747. EXTRACORPOREAL SHOCK WAVE LITHOTRIPTERS IMPORTED BY NONPROFIT INSTITUTIONS. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 912.24 Extracorporeal shock wave lithotripters imported by nonprofit hospitals and research or educational institutions (provided for in item 709.17, part2B, schedule 7) Free No change On or before 12/31/87 102 STAT. 1286 PUBLIC LAW 100-418—AUG. 23, 1988 SEC. 1748. TRANSPARENT PLASTIC SHEETING. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 915.10 Transparent plastic sheeting containing 30% or more of lead, by weight (provided for in item 774.58, part 12D, schedule 7) Free No change On or before 12/31/90 SEC. 1749. DOLL WIG YARNS. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 905.30 Grouped filaments and yams, not textured,in continuous form, colored, of nylon or modacrylic, whether or not curled of not less than 20 denier per filament, to be used in the manufacture of wigs for dolls (provided for in item 309.32 and 309.33, part IE, schedule 3, or item 389.62, part 7B, schedule 3) Free No change On or before 12/31/90 SEC. 1750. l-(3-SULF0PR0PYL) PYRIDINIUM HYDROXIDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following item: « 907.97 l-(3-Sulfopropyl)pyridinium hydroxide (provided for in item 406.42, part IB, schedule 4) Free No change SEC. 1751. POLYVINYLBENZYLTRIMETHYLAMMONIUM (CHOLESTYRAMINE RESIN USP). On or before 12/31/90 CHLORIDE Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 102 STAT. 1287 PUBLIC LAW 100-418—AUG. 23, 1988 907.30 Cross-linked polyvinylbenzyltrimethylammonium chloride (cholestyramine resin USP) (provided for in item 412.71, part IC, schedule 4) Free No change On or before 12/31/90 SEC. 1752. METHYLENE BLUE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 907.81 3,7-Bis-(dimethylamino)phenazathionium chloride (methylene blue) (provided for in item 409.74, part IC, schedule 4 Free No change On or before 12/31/90 SEC. 1753. 3-AMINO-3-METHYL-1-BUTYNE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 907.53 3-Amino-3-methyl1-butyne (provided for in item 425.52, part 2D, schedule 4) Free No change On or before 12/31/90 SEC. 1754. DICYCLOHEXYLBENZOTHIAZYLSULFENAMIDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 906.45 Dicyclohexylbenzothiazylsulfenamide (provided for in item 406.39, part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1755. D-6-METHOXY-a-METHYL-2-NAPHTHALENEACETIC ACID ITS SODIUM SALT. AND Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 102 STAT. 1288 PUBLIC LAW 100-418—AUG. 23, 1988 907.39 d-6-Methoxy-amethyl-2naphthaleneacetic acid and its sodium salt (provided for in item 412.22, part IC, schedule 4) Free No change On or before 12/31/90 SEC. 1756. SUSPENSION OF DUTIES ON JACQUARD CARDS AND JACQUARD HEADS. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 912.46 Jacquard cards and jacquard heads for power-driven weaving machines, and parts thereof (provided for in items 670.56 and 670.74, respectively, part4E, schedule 6) Free No change On or before 12/31/90 SEC. 1757. 2^.BIS(4-CYANATOPHENYL). Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 907.44 2,2-Bi8(4cyanatophenyl) (provided for in item 405.76, part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1758. PHENYLMETHYLAMINOPYRAZOLE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 907.47 Aminomethylphenylpyrazole (Phenylmethylaminopyrazole) (provided for in item 406.36, part IB. schedule 4) Free No change On or before 12/31/90 SEC. 1759. BENZETHONIUM CHLORIDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 102 STAT. 1289 PUBLIC LAW 100-418—AUG. 23, 1988 907.52 Benzethonium chloride (provided for in item 408.32, part IC, schedule 4) Free No change On or before 12/31/90 SEC. 1760. MANEB, ZINEB, MANCOZEB, AND METIRAM. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 907.60 Maneb, zineb, mancozeb, and metiram (provided for in item 432.15, part2E, schedule 4) Free No change On or before 12/31/90 SEC. 1761. METALDEHYDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 907.56 Metaldehyde (provided for in item 427.58, part 2D, schedule 4) Free No change On or before 12/31/90 SEC. 1762. PARALDEHYDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 907.57 Paraldehyde, USP grade (provided for in item 439.50, part 3C, schedule 4) Free No change On or before 12/31/90 SEC. 1763. CYCLOSPORINE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following item: 907.78 Cyclosporine (provided for in item 439.30, part3C, schedule 4) Free No change On or before 12/31/90 SEC. 1764. TEMPORARY REDUCTION OF DUTIES ON GLASS INNERS. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 102 STAT. 1290 PUBLIC LAW 100-418—AUG. 23, 1988 909.35 Glass inners designed for vacuum flasks or for other vacuum vessels (provided for in items 545.31, 545.34, 545.35, and 545.37, part 3C, schedule 5).... 9% ad val. 3.6% ad val. (I) 55% ad val. On or before 12/31/90 Free (A.E) SEC. 1765. BENZENOID DYE INTERMEDIATES. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following items: 907.84 907.85 907.86 p-Toluenesulfonyl chloride (provided for in item 403.05, part IB, schedule 4) Free No change On or before 12/31/90 6-Hydroxy-2naphthalenesulfonic acid; 6-Hydroxy-2naphthalenesulfonic acid, sodium salt; 6-Hydroxy-2napthalenesulfonic acid, potassium salt; and 6-Hydroxy-2napthalenesulfonic acid, ammonium salt (provided for in item 403.57, part IB, schedule 4) Free No change On or before 12/31/90 2,6-Dichlorobenzaldehyde (provided for in item 403.81 part IB, schedule 4)... Free No change On or before 12/31/90 102 STAT. 1291 PUBLIC LAW 100-418—AUG. 23, 1988 907.87 907.88 907.89 907.90 907.91 8-Ainino-lnaphthalenesulfonic acid and its salts (provided for in item 404.52, part IB, schedule 4).. Free No change On or before 12/31/90 5-Amino-2<pamino-anilino) benzene-sulfonic acid (provided for in item 404.84, part IB, schedule 4) Free No change On or before 12/31/90 l-Amino-2,4dibromoanthraquinone; and a,a,a-Trifluoro-otoluidine (provided for in item 404.88, part IB, schedule 4) Free No change On or before 12/31/90 l-Amino-8hydroxy3,6naphthalenedisulfonic acid; 4-Amino-5hydroxy-2,7naphthalenedisulfonic acid, monosodium salt (H acid, monosodium salt); and 2-Amino-5nitrophenol (provided for in item 404.92, part IB, schedule 4) Free No change On or before 12/31/90 l-Amino-4-bromo2anthraquinonesulfonic acid (Bromamine acid); 102 STAT. 1292 PUBLIC LAW 100-418—AUG. 23, 1988 907.92 907.93 907.94 l-Amino4-broino2-anthraquinone-sulfonic acid (Bromamine acid), sodium salt; 6-Amino-4hydroxy2-naphthalenesulfonic acid (Gamma acid); 3,3'-Dimethoxybenzidine (o-Dianisidine); 3,3'-Dimethoxybenzidine dihydrochloride (o-Dianisidine dihydrochloride); and 4-Methoxyaniline2-sulfonic acid (provided for in item 405.07, part IB, schedule 4) Free No change On or before 12/31/90 N-(7-Hydroxy-lnaphthyl)acetamide (provided for in item 405.28, part IB, schedule 4) Free No change On or before 12/31/90 N.N-Bis(2cyanoethyl)aniline (provided for in item 405.60, part IB, schedule 4) Free No change On or before 12/31/90 6^3-Methyl-5oxo-1pyrazolyl)-l,3naphthalenedisulfonic acid (Amino-Jpyrazolone) (CAS No. 7277-87-4); and 3-Methyl-lphenyl5-pyrazolone 102 STAT. 1293 PUBLIC LAW 100-418—AUG. 23, 1988 907.95 907.96 (Methylphenylpyrazolone) (provided for in item 406.36, part IB, schedule 4) Free No change On or before 12/31/90 2-Ainino-N-ethyIbenzenesulfonanilide (provided for in item 406.49. part IB. schedule 4) Free No change On or before 12/31/90 m-Sulfaminopyrazolone m-Sulfamidophenylmethylpyrazolone) (provided for in item 406.56. part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1766. TUNGSTEN ORE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 911.96 Tungsten ore (provided for in item 601.54, part 1. schedule 6) Free No change On or before 12/31/90 SEC. 1767. CHLOR AMINO BASE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 907.07 4-C3iloro-2,5dimethoxy aniline (CAS No. 6358-64-1) (provided for in item 405.01, part IB, schedule 4) at D_-» o_ Free No change On or before 12/31/90 102 STAT. 1294 PUBLIC LAW 100-418—AUG. 23, 1988 SEC. 1768. NITRO SULFON B. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 908.01 24(3-Nitrophenyl>sulfonyl]ethanol (CAS No. 41687-30-3) (provided for in item 406.00, part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1769.4-CHLOR0.2.NITRO ANILINE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new items: 908.02 4-Chloro-2-nitro aniline (CAS No. 89-63-4) (provided for in item 404.88, part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1770. AMINO SULFON BR. Subpsui B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 908.03 3-(4'-aminobenzamido) phenylbeta-hydroxyethyl sulfone (CAS No. 20241-68-3) (provided for in item 406.00, part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1771. ACET QUINONE BASE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 908.04 2,5-Dimethoxyacetanilide (CAS No. 3467-59-2) (provided for in item 405.34, part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1772. DIAMINO PHENETOLE SULFATE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 102 STAT. 1295 PUBLIC LAW 100-418—AUG. 23, 1988 908.05 3,4-Diamino phenetole dihydrogen sulfate (CAS No. 85137-09-3) (provided for in item 405.09, part IB, schedule 4) No change Free SEC. 1773. CERTAIN MIXTURES OF POLYACRYLATE POLYMERS. CROSS-LINKED On or before 12/31/90 SODIUM Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following item: 907.72 Mixtures of two or more organic compounds containing one or more crosslinked sodium polyacrylate polymers (provided for in item 430.20, part 2D, schedule 4) Free SEC. 1774. N-ETHYL-0-TOLUENESULFONAMIDE ENESULFONAMIDE. No change AND On or before 10/31/87 N-ETHYL-P-TOLU- Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 908.07 N-Ethyl-o-toluenesulfonamide, and N-Ethyl-p-toIuenesulfonamide (provided for in item 409.34, part IC, schedule 4) Free No change On or before 12/31/90 SEC. 1775. SETHOXYDIM. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 102 STAT. 1296 PUBLIC LAW 100-418--AUG. 23, 1988 906.36 Mixtures of 2-{l(ethoxyimino)butyl>5-[2(ethylthio)propyl]-3hydroxy-2cyclohexen-1one (sethoxydim) and application adjuvants (provided for in item 407.19, part IB, or item 430.20, part 2D of schedule 4) Free No change On or before 12/31/90 SEC. 1776.3-ETHYLAMINO-P-CRESOL. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 906.34 3-Ethylamino-pcresol (provided for in item 404.96, part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1777. ROSACHLORIDE LUMPS. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 908.11 l-Amino-2^hloro4hydroxyanthraquinone (provided for in item 405.07, part IB. schedule 4) Free No change On or before 12/31/90 SEC. 1778. C-AMINES. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 906.59 2-Amino-5-chloro4-methylbenzenesulfonic acid; and 2-amino-5-chloro4-ethyIbenzenesulfonic acid (provided for in item 404.88 and 404.90, respectively, part IB, sched- 102 STAT. 1297 PUBLIC LAW 100-418—AUG. 23, 1988 ule 4).. No change Free On or before 12/31/90 SEC. 1779. DIAMINO IMID SP. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 906.60 4,11-Diamino-lHnaphth[2,3-f|i80indole1,3,5,10(2H)tetrone (CAS No. 128-81-4) (provided for in item 406.42, part IB, schedule 4) No change Free On or before 12/31/90 SEC. 1780. CERTAIN STUFFED TOY FIGURES. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 912.32 StuHed or filled toy figures of animate objects (except dolls), not having a spring mechanism and not exceeding 25 inches in either length, width, or height (provided for in items 737.30 and 737.40, part 5E. schedule 7)... Free SEC. 1781. KITCHENWARE CERAMICS. OF No change TRANSPARENT, On or before 12/31/90 NONGLAZED GLASS Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 102 STAT. 1298 PUBLIC LAW 100-418—AUG. 23, 1988 909.15 Kitchenware of glass-ceramics, nonglazed, greater than 75 percent by volume crystalline, containing lithium aluminosilicate, having a linear coefHcient of expansion not exceeding 10x10"'per Kelvin within a temperature range of 0' C to 300* C, transparent, haze-free, exhibiting transmittances of infrared radiations in excess of 75 percent at a wavelength of 2.5 microns when measured on a sample 3 mm. in thickness, and containing betaquartz solid solution as the predominant crystal phase (provided for in item 534.97, part2C,. schedule 5) Free No change On or before 12/31/90 SEC. 1782. HOSIERY KNITTING MACHINES AND NEEDLES. (a) IN GENERAL.—Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new items: 912.28 Needles for knitting machines (provided for in items 670.58 and 670.62, part 4E, schedule 6)... Free No change On or before 12/31/90 PUBLIC LAW 100-418—AUG. 23, 1988 912.29 Hosiery knitting machines, single cylinder fine gauge and all double cylinder (provided for in items 670.16 and 670.18, part 4E, schedule 6).... Free ' • " " • 102 STAT. 1299 • No change On or before 12/31/90 (b) REPEAL.—Items 912.08 and 912.09 are repealed. SEC. 1783. CERTAIN BICYCLE PARTS. (a) BICYCLE TIRES AND TUBES.—Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 912.01 Bicycle tires and tubes and rim strips, the foregoing of rubber or plastics (provided for in item 732.42, part 50, schedule 7, and items 772.48 and 772.57, part 12C, schedule 7).. Free No change On or before 12/31/90 0)) GENERATOR LIGHTING SETS.—Item 912.05 of the Appendix is amended by striking out "6/30/86" and inserting in lieu thereof "12/31/90". (c) BICYCLE CHAINS.—Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 912.06 Bicycle chains (provided for in items 652.13 and 652.15, part 3F, schedule 6)... Free No change On or before 12/31/90 (d) OTHER BICYCLE PARTS.—Item 912.10 of the Appendix is amended— (1) by inserting "front and rear derailleurs, shift levers, cables and casings for derailleurs," immediately after "drum brakes,", (2) by striking out "multiple free wheel sprockets" and inserting in lieu thereof "free wheel sprockets", (3) by inserting "and" after "frame lugs,", (4) by striking out ", including cable or inner wire for caliper brakes and casing therefor, whether or not cut to length, and parts of bicycles consisting of sets of steel tubing cut to exact length and each set having the number of tubes needed for the assembly (with other parts) into the frame and fork of one bicycle", and PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1300 (5) by striking out "6/30/86" and inserting in lieu thereof "12/31/90". (e) CALIPER BRAKE CABLE OR INNER WIRE AND CASING.—Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 912.12 Cable or inner wire for caliper brakes and casing therefor, whether or not cut to length (provided for in items 642.08, 642.11, 642.14, 642.16, 642.18, 642.19, 642.23, and 657.25, parts 3B and 3G, schedule 6, and items 771.55 and 772.65, parts 12B and 12C, schedule 7) Free No change On or before 12/31/90 (f) EXCEPTION TO CUSTOMS EXEMPTION APPLICABLE TO FOREIGN TRADE ZONES.—Section 3(b) of the Act of June 18, 1934 (commonly known as the Foreign Trade Zones Act, 19 U.S.C. 81c(b)), is amended by striking out "June 30,1986" and inserting in lieu thereof "January 1,1991". SEC. 1784. l,2-DIMETHYL-3,5-DIPHENYLPYRAZOLIUM METHYL SULFATE (DIFENZOQUAT METHYL SULFATE). Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 907.24 l,2-Dimethyl-3.5diphenylpyrazolium methyl sulfate (difenzoquat methyl sulfate) (provided for in item 408.19, part 10, schedule 4) Free No change On or before 12/31/90 SEC. 1785. T R I A L L A T E . Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 102 STAT. 1301 PUBLIC LAW 100-418—AUG. 23, 1988 907.64 S^2,3,3'trichlorallyl)diisopropylthiocarbamate (provided for in item 425.36, part 2D, schedule 4) Free No change On or before 12/31/90 SEC. 1786. m-NITRO-p-ANISIDINE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 906.56 m-Nitro-panisidine (provided for in item 405.09, part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1787. DINOCAP AND MIXTURES OF DINOCAP AND MANCOZEB. (a) DiNOCAP AND APPUCATION ADJUVANTS.—Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new items: 907.98 907.99 Dinocap (provided for in item 408.16, part IC, schedule 4) Free No change On or before 12/31/90 Mixtures of dinocap and application adjuvants (provided for in item 408.38. part IC, schedule 4) Free No change On or before 12/31/90 (b) MIXTURES OF DINOCAP AND MANCOZEB.—Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 907.28 Mixtures of mancozeb and dinocap (provided for in item 408.38, part IC, schedule 4) Free No change On or before 12/31/90 SEC. 1788. m-NITRO-O-ANISIDINE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 102 STAT. 1302 PUBLIC LAW 100-418—AUG. 23, 1988 906.35 m-Nitro-oanisidine (provided for in item 405.07, part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1789. p-NITRO-0-TOLUIDINE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence to the following new item: 906.37 p-Nitro-o-toluidine (provided for in item 404.88, part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1790. PHENYLCARBETHOXYPYRAZOLONE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 906.31 Phenylcarbethoxypjrrazolone (provided for in item 406.39, part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1791. p-NITRO-O-ANISIDINE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 908.14 p-Nitro-oanisidine (provided for in item 405.07, part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1792. CARBODIIMIDES. (a) Subpart B of part 1 of the Appendix is amended by inserting in numericsd sequence the following new item: 102 STAT. 1303 PUBLIC LAW 100-418—AUG. 23, 1988 907.70 Bis(o-tolyl) carbodiimide; 2,2',6,6'Tetraisopropyldiphenyl carbodiimide; Poly[nitrilomethanetetraryl-nitrilo [2,4,6-tris(l,methylethyl)-l,3 phenylenej, 2,6bisdmethylethyl) phenyl]-omega[[[[2,6-bis(lmethylethyl) phenyl]ainino] methylene]amino]; and Benezene, 2,4diisocyanatol,3,5-tris(lmethylethyl)homopolymer (provided for in item 405.53, part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1793. TRIETHYLENE GLYCOL BICHLORIDE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 907.73 Triethylene glycol dichloride (provided for in item 428.47, part 2D, schedule 4) Free No change On or before 12/31/90 SEC. 1794. MIXTURES OF 5-CHLORO-2-METHYL-4-ISOTHIAZOLIN-3-ONE, 2METHYL.4-ISOTHIAZOLIN-3-ONE, MAGNESIUM CHLORIDE. STABILIZERS AND APPLICATION ADJUVANTS. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 102 STAT. 1304 PUBLIC LAW 100-418—AUG. 23, 1988 908.16 Mixtures of 5chloro-2-methyl4-isothiazolin-3one, 2-methyl-4isothiazolin-3one, magnesium chloride, stabilizers and application adjuvants (provided for in item 432.28, part 2E, schedule 4) Free No change On or before 12/31/90 SEC. 1795. 2-N-OCTYL-4.ISOTHIAZOLIN-3-ONE, AND ON MIXTURES OF 2-NOCTYL-4-ISOTHIAZOLIN-3-ONE AND APPLICATION ADJUVANTS. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 908.17 2-n-Octyl-4isothiazolin-3one, and mixtures of 2-noctyl-4isothiazolin-3one and application a4iuvants (provided in items 425.52 and 430.20, part 2D, schedule 4)... Free No change On or before 12/31/90 SEC. 1796. WEAVING MACHINES FOR FABRICS IN EXCESS OF 16 FEET WIDTH. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 912.48 Power-driven weaving machines for weaving fabrics more than sixteen feet in width, and parts thereof (provided for in item 670.14 and 670.74, part 4E, schedule 6) Free No change On or before 12/31/90 SEC. 1797. BARBITURIC ACID. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 102 STAT. 1305 PUBLIC LAW 100-418—AUG. 23, 1988 907.50 Barbituric acid (provided for in item 437.36, part 3B, schedule 4) Free No change On or before 12/31/90 SEC. 1798. 3-METHYL-5.PYRAZOLONE. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 907.46 3-Methyl-5pyrazolone (provided for in item 425.52, part 2D, schedule 4) Free No change On or before 12/31/90 SEC. 1799. 3-METHYL-l-(P-TOLYL)-2-PYRAZOLIN-5.0NE (P-TOLYL METHYL PYRAZOLONE). Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 908.15 3-Methyl-l-(ptolyl)-2pyrazolin-5-one (p-Tolyl methyl pjrrazolone) (provided for in item 406.36, part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1800. CERTAIN OFFSET PRINTING PRESSES. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 911.93 Offset printing presses of the sheet-fed type weighing 3,500 pounds or more (provided for in item 668.21, part4D, schedule 6) No change 10% ad val. On or before 12/31/90 SEC. 1801. FROZEN CRANBERRIES. Subpart B of part 1 of the Appendix to the Tariff Schedules of the United States is amended by inserting in numerical sequence the following item: 102 STAT. 1306 PUBLIC LAW 100-418—AUG. 23, 1988 903.63 Cranberries, frozen (provided for in item 146.71, part 9B, schedule 1) Free No change On or before 12/31/90 SEC. 1802. m-HYDROXYBENZOIC ACID. Subpart B of part 1 of the Appendix is amended by inserting in numerical sequence the following new item: 908.18 m-Hydroxybenzoic acid (provided for in item 404.40, part IB, schedule 4) Free No change On or before 12/31/90 SEC. 1803. CERTAIN BENZENOID CHEMICALS. Subpart B of part 1 of the Appendix is amended— (1) by inserting in numerical sequence the following new item: 908.32 N1,N4,N4-Tris(2hydroxyethyl)-2nitro-1,4phenylenediamine; N1,N4-DimethylNl-(2hydroxyethyl)-3nitro-1,4phenylenediamine; N1,N4-DimethylNl-(2,3dihydroxjrpropyl)-3-nitro-l,4phenylenediamine; and Nl-(2Hydroxyethyl)3-nitro-l,4phenylenediamine (provided for in item 405.09, part IB, schedule 4) Free No change On or before 12/1/90 (2) by inserting in numerical sequence the following new item: 908.33 and Nl-(2Hydroxyethyl)2-nitro-l,4phenylenediamine (provided for in item 405.07, part IB, schedule 4) Free No change On or before 12/1/90 PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1307 (3) by inserting in numerical sequence the following new item: 908.34 2-Nitro-5-[(2,3dihydroxy)propoxy]-Nmethylaniline; 2-Nitro-5-(2hydroxyethoxy)-Nmethylaniline; 4-[(2Hydroxyethyl)amino]-3nitrophenol; 4-(2Hydroxyethoxy)-l,3phenylenediamine dihydrochloride; and 3-Methoxy-4-[(2hydroxyethyl)aminojnitrobenzene (provided for in item 405.09, part IB, schedule 4) Free No change On or before 12/1/90 SEC. 1804. EXTENSION OF CERTAIN SUSPENSION PROVISIONS. (a) PROVISIONS THAT EXPIRED BEFORE 1987.—Each of the following items are amended by striking out the date in the effective date column and inserting in lieu thereof "12/31/90": (1) Item 903.65 (relating to cantaloupes). (2) Items 905.10 and 905.11 (relating to certain wools). (3) Items 906.10 and 906.12 (relating to needlecraft display models). (4) Item 907.01 (relating to triphenyl phosphate). (5) Item 907.14 (relating to isomeric mixtures of ethylbiphenyl). (6) Item 907.17 (relating to sulfapjrridine). (7) Item 911.25 (relating to synthetic rutile). (8) Item 911.95 (relating to certain clock radios). (9) Item 912.07 (relating to machines designed for heat-set, stretch texturing of continuous man-made fibers). (10) Item 912.20 (relating to certain small toys). t (11) Items 912.30, 912.34, and 912.36 (relating to stuffed dolls, certain toy figures, and skins thereof). (12) Item 912.45 (relating to umbrella frames). (13) Item 903.60 (relating to mixtures of mashed or macerated hot red peppers and salt). 0)) PROVISIONS EXPIRING I N 1987 OR LATER.—Each of the following items is amended by striking out the date in the effective date column and inserting in lieu thereof "12/31/90": (1) Items 903.70 and 903.80 (relating to crude feathers and down). (2) Item 905.50 (relating to surgical gowns). 102 STAT. 1308 PUBLIC LAW 100-418—AUG. 23, 1988 (3) Item 906.50 (relating to diphenylguanidine and di-orthotolylguanidine). (4) Item 906.57 (relating to m-toluic acid). (5) Item 907.13 (relating to menthol feedstocks). (6) Item 907.19 (relating to sulfathiazole). (7) Item 907.21 (relating to flecainide acetate). (8) Item 907.23 (relating to o-Benzyl-p-chlorophenol). (9) Item 907.31 (relating to B-Naphthol). (10) Item 907.32 (relating to 3,3'-Diaminobenzidine). (11) Item 907.33 (relating to acetylsulfaguanidine). (12) Item 907.34 (relating to 6-Amino-l-naphthoI-3-sulfonic acid). (13) Item 907.35 (relating to 2-(4-Aminophenyl)-6-methylbenzothiazole-7-fiulfonic add). (14) Item 907.36 (relating to sulfamethazine). (15) Item 907.37 (relating to sulfaguanidine). (16) Item 907.38 (relating to sulfaquinoxaline and sulfanilamide). (17) Item 907.63 (relating to nicotine resins). (18) Item 907.79 (relating to iron-deztran complex). (19) Item 909.01 (relating to natural graphite). (20) Item 912.04 (relating to certain narrow weaving machines). (21) Item 912.11 (relating to certain lace-braiding machines). (22) Item 905.40 (relating to certain hovercraft skirts). (23) Item 906.52 (relating to 5^hloro-2-methyl-4-isothiazolin-3one, 2-methyl-4-isothiazolin-3-one, magnesium chloride and magnesium nitrate). (c) TECHNICAL AMENDMENTS.— (1) Item 906.10 is amended— (A) by striking out "365.78" and inserting in lieu thereof "365.66", (B) by striking out "365.86" and inserting in lieu thereof "365.89", (CD by striking out "367.34" and inserting in lieu thereof "367.32", (D) by striking out "367.60" and inserting in lieu thereof "367.63", (E) by striking out "386.13" and inserting in lieu thereof "386.12", and (F) by striking out "386.50" and inserting in lieu thereof "386.53". (2) Item 906.12 is amended by striking out "383.03, 383.08, 383.20, and 383.50" and inserting in Ueu thereof "384.04, 384.09, 384.22, and 384.52". (3) Item 907.14 is amended by striking out "407.16" and msertmg in lieu thereof "407.19". (4) Item 912.45 is amended by striking out "751.20" and inserting in lieu thereof "751.21". (5) Item 907.21 is amended by striking out "412.12" and inserting in lieu thereof "412.11". PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1309 Subpart C—Effective Dates SEC. 1831. EFFECTIVE DATES. (a) IN GENERAL.—Except as otherwise provided in this section, the amendments made by this part shall apply with respect to articles entered, or withdrawn from warehouse for consumption, after September 30,1988. (b) RETROACTIVE APPLICATION FOR CERTAIN LIQUIDATIONS AND REUQUIDATIONS.— (1) Notwithstanding section 514 of the Tariff Act of 1930 or any other provision of law, upon proper request filed with the appropriate customs ofGcer after September 30,1988, and before April 1,1989, any entry— (A) which was made after the applicable date and before October 1,1988, and (B) with respect to which there would have been no duty oralesserduty if any amendment made by— (i) section 1716, 1717, 1719(bX2), 1731, 1736, 1740, 1742(a), 1747, or 1773, (ii) subsection (a), (h), (d), or (e) of section 1783, or (iii) section 1804 (other than section 1804(aX7) and paragraphs (2) and (10) of section 18O40t))), applied to such entry, shall be liquidated or reUquidated as though such amendment applied to such entry. (2) For purposes of this section— (A) The term "applicable date" means— (i) if the amendment described in paragraph (1)(B) is made by section 1717 or 1747, December 31,1982, (ii) if such amendment is made by section 1804(aXl), May 15,1985, (iii) if such amendment is made by paragraph (2), (3), (5), or (13) of section 1804(a), June 30,1985, (iv) if such amendment is made by section 1773, July 1,1985, (v) if such amendment is made by section 1731, 1742(a), or 1804(aX4), September 30,1985, (vi) if such amendment is made by section 1736, October 31,1985, (vii) if such amendment is made by section 1716 or by paragraph (6), (9), or (11) of section 1804(a), December 31,1985, (viii) if such amendment is made by section 1740, May 31,1986, (ix) if such amendment is made by subsection (b), (d), or (e) of section 1783, June 30,1986, (x) if such amendment is made by paragraph (8), (10), or (12) of section 1804(a), December 31,1986, (xi) if such amendment is made by section 1783(a) or 18()4(b) (other than by paragraph (2) or (10) of section 1804(b)), December 31,1987, or (xii) if such amendment is made by section 1719(bX2), the date that is 15 days after the date of enactment of this Act. (B) The term "entry" includes any withdrawal from warehouse. 102 STAT. 1310 PUBLIC LAW 100-418—AUG. 23, 1988 (c) HOSIERY KNITTING MACHINES AND NEEDLES.—Notwithstanding ^ section 514 of the Tariff Act of 1930 or any other provision of law, upon proper request filed with the appropriate customs officer after September 30,1988, and before April 1,1989— (1) any entry of an article described in item 912.08 of the Tariff Schedules of the United States (as in effect on September 30,1985) that was made— (A) after September 30,1985, and (B) before the date that is 15 days after the date of enactment of this Act, shall be liquidated or reliquidated as though such entry had been made on September 30,1985; and (2) any entry of an article described in item 912.09 of such Schedules (as in efiect on June 30, 1985) that was made— (A) after June 30,1985, and (B) before the date that is 15 days after the date of enactment of this Act, shall be liquidated or reliquidated as though such entry had been made on June 30,1985. PART II~MISCELLANEOUS PROVISIONS SEC. 1841. CERTAIN STRUCTURES AND PARTS USED IN THE W.M. KECK OBSERVATORY PROJECT, MAUNA KEA, HAWAII. Canada. Federal Republic of Germany. The Secretary of the Treasury is authorized and directed to admit free of duty after September 30, 1988, the following articles for the use of the California Association for Research in Astronomy in the construction of the optical telescope for the W.M. Keck Observatory Project, Mauna Kea, Hawaii: (1) The telescope structure. (2) The observatory domes, produced by Brittain Steel, Ltd., of Vancouver, British (>)lumbia, Canada. (3) The primary mirror blanks, produced by the Schott Glassworks, Frankfurt, Federal Republic of CJermany. jf tjjg liquidation of the entry of any such article has become final before October 1, 1988, the entry shall, notwithstanding any other provision of law, be reliquidated on October 1, 1988, in accordance with the provisions of this section and the appropriate refund of duty made at the time of such reliquidation. SEC. 1842. RELIQUIDATION OF CERTAIN ENTRIES AND REFUND OF ANTIDUMPING DUTIES. (a) IN GENERAL.—Notwithstanding section 514 of the Tariff Act of 1930 (19 U.S.C. 1514) or any other provision of law, the entries listed in subsection (b) shall be reliquidated on October 1, 1988, without liability of the importer of record for antidumping duties, and if any such duty has been paid, either through liquidation or compromise under section 617 of the Tariff Act of 1930 (19 U.S.C. 1617), refund thereof shall be made on October 1,1988. (b) SPECIFIC ENTRIES.—The entries referred to in subsection (a) are as follows: Entry Numben 144549 150297 152729 156068 161653 Date of Entry: March 26,1976 April 27,1976 May 11, 1976 May 26,1976 June 23,1976 PUBLIC LAW 100-418—AUG. 23, 1988 Entry Niimben 168759 173393 175173 178811 108842 113000 115229 120070 120908 121403 130005 102 STAT. 1311 Date of Entry: July 30,1976 August 26,1976 September 3,1976 September 23,1976 November 18,1976 December 9,1976 December 21,1976 January 17,1977 January 20,1977 January 24,1977 March 10, 1977. SEC- 1843. RELIQUIDATION OF CERTAIN TUBULAR TIN PRODUCTS. Notwithstanding any provision of the Tariff Act of 1930 or any other provision of the law to the contrary, the Secretary of the Treasury shall reliquidate on or after October 1,1988, as free of duty under item 911.12 of the Appendix to the Tariff Schedules of the United States, as in efTect at the time of entry, the entries numbered 00329493 (dated March 16, 1979), 00329494 (dated March 13, 1979), 00329495 (dated March 28, 1979), and 00330003 (dated March 21, 1979), made at New York, and covering tubular tin products, if a certificate of actual use (remelt certificate) for the articles covered by the four entries is submitted to the United States Ckistoms Service at the port of entry after September 30, 1988, and before April 1,1989. SEC. 1844. CERTAIN EXTRACORPOREAL SHOCK WAVE LITHOTRIPTER IMPORTED FOR USE IN HAWAII. Notwithstanding any other provision of law— (1) the entry, or withdrawal from warehouse, for consumption in October 1986 of any extracorporeal shock wave lithotripter exclusively for use in the State of Hawaii shall be free of duty and, upon a request filed with the appropriate customs officer after September 30, 1988, and before April 1, 1989, shall be reliquidated in accordance with the provisions of this section, and (2) the appropriate refund of any duties paid on such entry or withdrawEd shall be made after September 30,1988. SEC. 1845. EXTENSION OF THE FILING PERIOD FOR RELIQUIDATION OF CERTAIN ENTRIES. Notwithstanding section 514 of the Tariff Act of 1930 or any other provision of law, upon proper request filed with the customs officer concerned after September 30, 1988, and before April 1, 1989, the entry of any article described in item 687.70 of the Tariff Schedules of the United States which was made on or after March 1,1985, and before November 6, 1986, shall be liquidated or reliquidated as though such entry had been made on November 6,1986. 102 STAT. 1312 PUBLIC LAW 100-418—AUG. 23, 1988 Subtitle H—Miscellaneous Customs, Trade, and Other Provisions PART 1—CUSTOMS PROVISIONS SEC. 1901. ENFORCEMENT OF THE RESTRICTIONS AGAINST IMPORTED PORNOGRAPHY. Courts, U.S. 19 use 1305 "<**«• (a) I N GENERAL.—Section 305 of the Tariff Act of 1930 (19 U.S.C. 1305) is amended as follows: (1) The second paragraph of subsection (a) is designated as subsection (b) and the following side heading, appropriately indented, is inserted before "Upon" at the be^ginning of the paragraph: "Ob) ENFORCEMENT PROCEDURES.—". (2) The second sentence of subsection Qji) (as redesignated by paragraph (1)) is amended to read as follows: "Upon the seizure of such book or matter, such customs officer shall transmit information thereof to the United States attorney of the district in which is situated either— "(1) the office at which such seizure took place; or "(2) the place to which such book or matter is addressed; and the United States attorney shall institute proceedings in the district court for the forfeiture, confiscation, and destruction of the book or matter seized.". (3) The following new subsections are added at the end thereof: "(c) Notwithstanding the provisions of subsections (a) and (b), whenever a customs officer discovers any obscene material after such material has been imported or brought into the United States, or attempted to be imported or brought into the United States, he may refer the matter to the United States attorney for the institution of forfeiture proceedings under this section. Such proceeding shall begin no more than 30 days after the time the material is seized; except that no seizure or forfeiture shall be invalidated for delay if the claimant is responsible for extending the action beyond the allowable time limits or if proceedings are postponed pending the consideration of constitutional issues. "(d) Upon motion of the United States, a court shall stay such civil forfeiture proceedings commenced under this section pending the completion of any related criminal matter.". (b) EFFECTIVE DATE.—The amendments made by subsection (a) apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after the 15th day after the date of the enactment of this Act. SEC. 1902. TARE ON CRUDE OIL AND PETROLEUM PRODUCTS. (a) I N GENERAL.—Section 507 of the Tariff Act of 1930 (19 U.S.C. 1507) is amended— (1) by striking out "The Secretary" and inserting in lieu thereof "(a) I N GENERAL.—The Secretary", (2) by striking out "in no case shall there be" and inserting in lieu thereof "(except as otherwise provided in this section) there shall not be", and (3) by adding at the end thereof the following new subsection: "(b) CRUDE OIL AND PETROLEUM PRODUCTS.—In ascertaining tare on imports of crude oil, and on imports of petroleum products. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1313 allowance shall be made for all detectable moisture and impurities present in, or upon, the imported crude oil or petroleum products.". (b) EFFECTIVE DATE.—The amendment made by this section shall 19 USC 1507 apply with respect to articles entered, or withdrawn from warehouse ^°^for consumption, after October 1,1987. SEC. 1903. EUGIBLE ARTICLES UNDER THE GENERALIZED SYSTEM OF PREFERENCES. Section 503(cXlXB) of the Trade Act of 1974 (19 U.S.C. 2463(cXlXB)) is amended to read as follows: "(B) watches, except those watches entered after June 30, 1989, that the President specifically determines, after public notice and comment, will not cause material injury to watch or watch band, strap, or bracelet manufacturing and assembly operations in the United States or the United States insular possessions,". SEC. 1904. CUSTOMS BOND CANCELLATION STANDARDS. Section 623(c) of the Tariff Act of 1930 (19 U.S.C. 1623(c)) is amended by adding at the end thereof the following new sentence: "In order to assure uniform, reasonable, and equitable decisions, the Secretary of the Treasury shall publish guidelines establishing standards for setting the terms and conditions for cancellation of bonds or charges thereunder.". SEC. 1905. CUSTOMS SERVICES AIRPORT. AT PONTIAC/OAKLAND, MICHIGAN, Section 236 of the Trade and Tariff Act of 1984 (19 U.S.C. 586) is 19 use 58b. amended— (1) by striking out "and" at the end of subsection (aXD; (2) by redesignating paragraph (2) of subsection (a) as paragraph (3); (3) by inserting after paragraph (1) of subsection (a) the following new paragraph: "(2) the airport located at Pontiac/Oakland, Michigan, and"; and (4) by striking out "20" in subsection (c). SEC. 1906. SENSE OF CONGRESS REQUESTING THE PRESIDENT TO INSTRUCT THE SECRETARY OF THE TREASURY TO ENFORCE SECTION 307 OF THE TARIFF ACT OF 1930 WITHOUT DELAY. (a) (CONGRESSIONAL FINDINGS.—The Ck>ngress finds that— (1) its February 1983 report to the Congress on forced labor in the Union of Soviet Socialist Republics, the Department of State confirmed that Soviet forced labor is used to produce large amounts of primary and manufactured goods for both domestic and Western export markets", and that such labor is used as an integral part of Soviet national economy; (2) the CJentral Intelligence Agency has compiled a list of over three dozen products made by Soviet forced labor and imported by the United States, and that items on the September 27, 1983 li^t include chemicals, gold, uranium, aluminum, wood products and glassware; (3) the International (Commission on Human Rights has concluded that the Soviet Union "continues the deplorable practice of forced labor in memufacturing and construction projects" and that prisoners "are forced to work under conditions of extreme 19 USC 1307 note. 102 STAT. 1314 PUBLIC LAW 100-418—AUG. 23, 1988 hardship including m£dnutrition, inadequate shelter and clothing, and severe discipline"; (4) the Congress is on record as opposing forced labor, having enacted a prohibition (in section 307 of the Tariff Act of 1930 (19 U.S.C. 1307)) on the importation of goods made with such labor and having passed in the Ninety-eighth (Congress by unanimous , vote a resolution calling such practices morally reprehensible and calling upon the President to express to the Soviet Union the opposition of the United States to such policies; (5) the prohibition enacted by the Congress declares that "goods, wares, articles, and merchandise mined, produced or manufactured wholly or in part in any foreign country by convict labor or/and forced labor or/and indentured labor under penal sanctions shall not be entitled to entry at any of the ports of the United States, and the importation thereof is hereby prohibited"; (6) there is ample knowledge of the Soviet forced labor system to require enforcement of the prohibition contained in section 307 of the Tariff Act of 1930 (19 U.S.C. 1307); and (7) the delay in enforcing the law brings into question the commitment of the United States to protest the inhumane treatment of prisoners in the Soviet Gulag, an estimated ten thousand of whom are political and religious prisoners according to the Department of State. Qo) SENSE OF (INGRESS.—It is the sense of the CJongress that the President should express to the Soviet Union in the firmest possible terms the strong moral opposition of the United States to the slave labor policies of the Soviet Union by every means possible, including refusing to permit the importation into the United States of any products made in whole or in part by such labor. (c) PRESIDENTIAL ACTION.—The President is hereby requested to instruct the Secretary of the Treasury to enforce section 307 of the Tariff Act of 1930 (19 U.S.C. 1307) without delay. SEC. 1907. IMPORT MARKING PROVISIONS. (a) INCREASE IN PENALTY FOR VIOLATIONS OF COUNTRY-OF-ORIGIN A I A R K I N G REOUIRE!\fEINTS —^ 19 use 1304 "°**- (1) Section 304(h) of the Tariff Act of 1930 (19 U.S.C. 1304(h)) is amended to read as follows: "(h) PENALTIES.—Any person who, with intent to conceal the information given thereby or contained therein, defaces, destroys, removes, alters, covers, obscures, or obliterates any mark required under the provisions of this Act shall— "(1) upon conviction for the first violation of this subsection, be fined not more than $100,000, or imprisoned for not more than 1 year, or both; and "(2) upon conviction for the second or any subsequent violation of this subsection, be fined not more than $250,000, or imprisoned for not more than 1 year, or both.". (2XA) The amendment made by paragraph (1) applies with respect to acts committed on or after the date of the enactment of this Act. (B) The conviction of a person under section 304(h) of the Tariff Act of 1930 for an act committed before the date of the enactment of this Act shall be disr^arded for purposes of appljdng paragraph (2) of such subsection (as added by the amendment made by paragraph (1) of this subsection. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1315 (b) MARKING OF CONTAINERS OF IMPORTED MUSHROOMS.—Imported preserved mushrooms shall not be considered to be in compliance with section 304 of the Tariff Act of 1930 (19 U.S.C. 1304) or any other law relating to the marking of imported articles unless the containers thereof indicate in English the country in which the mushrooms were grown. (c) NATIVE-AMERICAN STYLE JEWELRY AND NATIVE-AMERICAN Regulations. STYLE ARTS AND CRAFTS.—By no later than the date that is 1 year after the date of enactment of this Act, the Secretary of the Treasury shall prescribe and implement r^ulations under section 304 of the Tariff Act of 1930 (19 U.S.C. 1304) which require, to the greatest extent possible, that all Native-American style jewelry and NativeAmerican style arts and crafts that are imported into the United States have the English name of the country of origin of such jewelry or arts and crafts indelibly marked in a conspicuous place on such jewelry or arts and crafts by a permanent method of marking. SEC. 1908. DUTY-FREE SALES ENTERPRISES. (a) FINDINGS.—The Congress finds that— 19USC1555 (1) duty-free sales enterprises play a significant role in ^°^attracting international passengers to the United States and thereby their operations favorably affect our balance of payments; (2) concession fees derived from the operations of authorized duty-free sales enterprises constitute an important source of revenue for the State, local and other governmental authorities that collect such fees; (3) there is inadequate statutory and regulatory recognition of, and guidelines for the operation of, duty-free sales enterprises; and (4) there is a need to encourage uniformity and consistency of regulation of duty-free sales enterprises. Ot)) IN GENERAL.—Section 5550)) of the Tariff Act of 1930 (19 U.S.C. 1555(b)) is amended to read as follows: "OJ) DUTY-FREE SALES ENTERPRISES.— "(1) Duty-free sales enterprises may sell and deliver for export from the customs territory duty-free merchandise in accordance with this subsection and such regulations as the Secretsiry may prescribe to carry out this subsection. "(2) A duty-free sales enterprise may be located anjrwhere within— "(A) the same port of entry, as established under section 1 of the Act of August 24, 1912 (37 Stat. 434), from which a purchaser of duty-free merchandise departs the customs territory; or "(B) 25 statute miles from the exit point through which the purchaser of duty-free merchandise will depart the customs territory. "(3) Each duty-free sales enterprise— "(A) shaJl establish procedures to provide reasonable assurance that duty-free merchandise sold by the enterprise will be exported from the customs territory; "(B) if the duty-free sales enterprise is an airport store, shall establish and enforce, in accordance with such regulations as the Secretary may prescribe, restrictions on the 102 STAT. 1316 State and local governments. PUBLIC LAW 100-418—AUG. 23, 1988 sale of duty-free merchandise to any one individual to personal use quantities; "(C) shall display in prominent places within its place of business notices which state clearly that any duty-free merchandise purchased from the enterprise— "(i) has not been subject to any Federal duty or tax, "(ii) if brought back into the customs territory, must be declared and is subject to Federal duty and tax, and "(iii) is subject to the customs laws and regulation of any foreign country to which it is taken; "(D) shall not be required to mark or otherwise place a distinguishing identifier on individual items of merchandise to indicate that the items were sold by a duty-free sales enterprise, unless the Secretary finds a pattern in which such items are being brought back into the customs territory without declaration; (E) may unpack merchandise into saleable units after it has been entered for warehouse and placed in a duty-free sales enterprise, without requirement of further permits; and "(F) shall deliver duty-free merchandise— "(i) in the case of a duty-free sales enterprise that is an airport store— "(I) to the purchaser (or a family member or companion traveling with the purchaser) in an area that is within the airport and to which access to passengers is restricted to those departing from the customs territory; "(n) to the purchaser (or a family member or companion traveling with the purchaser) at the exit point of a specific departing flight; "(01) by placing the merchandise within the aircraft on which the purchaser will depart for carriage as passenger baggage; or "(XV) if the duty-free sales enterprise has made a good faith effort to effect delivery for exportation through one of the methods described in subclause (I), (ID, or (HI) but is unable to do so, by any other reasonable method to effect delivery; or "(ii) in the case of a duty-free sales enterprise that is a border store— "(I) at a merchandise storage location at or beyond the exit point; or (II) at any location approved by the Secretary before the date of enactment of the Omnibus Trade Act of 1987. "(4) If a State or local or other governmental authority, incident to its jurisdiction over any airport, seaport, or other exit point facility, requires that a concession or other form of approval be obtained from that authority with respect to the operation of a duty-free sales enterprise under which merchandise is delivered to or through such facility for exportation, merchandise incident to such operation may not be withdrawn from a bonded warehouse and transferred to or through such facility unless the operator of the duty-free sales enterprise demonstrates to the Secretary that the concession or approval required for the enterprise has been obtained. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1317 "(5) This subsection does not prohibit a duty-free sales enterprise from offering for sale and delivering to, or on behalf of, individuals departing from the customs territory merchandise other than duty-free merchandise, except that such, other merchandise may not be stored in a bonded warehouse fadlity other than a bonded facility used for retail sales. "(6) Merchandise that is purchased in a duty-free sales enterpiise is not eligible for exemption from duty under subpart A of part 2 of schedule 8 of the Tariff Schedules of the United States if such merchandise is brought back to the customs territory. "(7) The Secretary shall by r^ulation establish a separate class of bonded warehouses for duty-free sales enterprises. Regulations issued to carry out this paragraph shall take into account the unique characteristics of the different types of dutyfree sales enterprises. "(8) For purposes of this subsection— "(A) The term 'airport store' means a duty-free sales enterprise which delivers merchandise to, or on behalf of, individuals departing from the customs territory from an international airport located within the customs territory. "(B) The term Twrder store' means a duty-free sales enterprise which delivers merchandise to, or on behalf of, individuals departing from the customs territory through a land or water border by a means of conveyance other than an aircraft. (O The term 'customs territory' means the customs territory of the United States and foreign trade zones. "(D) The term 'duty-free sales enterprise' means a person that sells, for use outside the customs territory, duty-free merchandise that is delivered from a bonded warehouse to an airport or other exit point for exportation by, or on behalf of, individuals departing from the customs territory. "(E) The term 'duty-free merchandise' means merchandise sold by a duty-free sales enterprise on which neither Federal duty nor Federal tax has been assessed pending exportation from the customs territory. "(F) The term 'exit point' means the area in close proximity to an actual exit for departing from the customs territory, including the gate holding area in the case of an airport, but only if there is reasonable assurance that dutyfree merchandise delivered in the gate holding area will be exported from the customs territory. "(G) The term 'personal use quantities' means quantities that are only suitable for uses other than resale, and includes reasonable quantities for household or family consumption as well as for gifts to others.", (c) EFFECTIVE DATE.—^The amendment made by this section shall take effect on the date that is 15 days after the date of enactment of this Act. SEC 1909. CARIBBEAN BASIN INITIATrVE. (a) FINDINGS.—The Congress finds that— (1) Caribbean and Central American countries historically have had close economic, political, and cultural ties to the United States; " Regulations. 19 USC 1555 ^°^- 19 USC 2702 note. 102 STAT. 1318 PUBLIC LAW 100-418—AUG. 23, 1988 (2) promoting economic and political stability in the Caribbean and Central America is in the national security interests of the United States; (3) the economic and political stability of the nations of the Caribbean and Central America can be stengthened significantly by the attraction of foreign and domestic investment specifically devoted to employment generation; and (4) the diversification of the economies and expansion of exports, particularly those of a non-traditional nature, of the nations of the Caribbean and Central America is linked directly to fair access to the markets of the United States. (b) INTENT OF THE CONGRESS.—The Congress hereby expresses its intention to ensure that— (1) the trade elements of the Caribbean Basin Initiative be strengthened in a manner consistent with the promotion of economic and political stability in the Caribbean and Central America; (2) to the extent that Congress imposes changes that are intended to improve the competitive environment for United States industry and workers, such changes do not unduly affect the unilateral duty-free trade system available to the beneficiary countries designated under the Caribbean Basin Economic Recovery Act; and (3) generic changes in the trade laws of the United States do not discriminate against imports from designated beneficiary countries in relation to imports from other United States trading partners. (c) WITHDRAWAL OR SUSPENSION OF DUTY-FREE TREATMENT TO SPECIFIC ARTICLES.—Subsection (e) of section 212 of the Caribbean Basin Economic Recovery Act (19 U.S.G. 2702(e)) is amended to read as follows: "(eXD The President may, after the requirements of subsection (aX2) and paragraph (2) have been met— "(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 subtitle to any article of any country, if, after such designation, the President determines that as a result of changed circumstances such country would be barred from designation as a beneficiary country under subsection (b). President of U.S. "(2XA) The President shall publish in the Federal R o i s t e r notice Federal of the action the President proposes to take under paragraph (1) at Register, least 30 days prior to taking such action. publication. "(B) The United States Trade Representative shall, within the 30day period b ^ i n n i n g 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 Federal "(iii) publish in the Federal Register— Register, "(I) notice of the time and place of such hearing prior to publication. the hearing, and "(U) the time and place at which such written comments will be accepted.". PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1319 SEC. 1910. ETHYL ALCOHOL AND MIXTURES FOR FUEL USE. (a) I N GENERAL.—Subsection db) of section 423 of the Tax Reform Act of 1986 (19 U.S.C. 2703, note) is amended— (1) by striking out "and 1988" in paragraphs (1) and (2) and inserting in lieu thereof ", 1988, and 1989", (2) by striking out "an insular possession of the United States or" in paragraph (IXA), (3) by striking out "January 1, 1986, or" in paragraph (IXA) and inserting in lieu thereof "July 1,1987,", (4) by inserting "or an insular possession of the United States" after "beneficiary country" in paragraph (IXBXiiXH), (5) by striking out the period at the end of paragraph (IXB) and inserting in lieu thereof ", or", (6) by inserting the following new subparagraph after subparagraph (B) of paragraph (1): "(C) a distillation facility operated by a corporation which, before the date of enactment of the Omnibus Trade Act of 1987— "(i) has completed engineering and design of a full- Virgin Islands. scale fermentation facility in the United States Virgin Islands, and "(ii) has obtained authorization from authorities of the United States Virgin Islands to operate a full-scale fermentation facility.", and (7) by striking out "or (B)" in paragraph (2) and inserting in lieu thereof ", (B), or (€)". (b) STUDIES.— (1) The United States International Trade Commission and the Comptroller General of the United States shall each immediately undertake a study r ^ a r d i n g whether the definition of indigenous ethyl alcohol or mixtures thereof used in appljdng section 423 of the Tax Reform Act of 1986 is consistent with, and will contribute to the achievement of, the stated policy of Congress to encourage the economic development of the beneficiary countries under the Caribbean Basin Economic Recovery Act and the insular possessions of the United States through the maximum utilization of the natural resources of those countries and possessions. Each study shall specifically include— (A) an assessment r ^ a r d i n g whether the indigenous product percentage requirements set forth in subsection (cX2)(B) of such section 423 are economically feasible for ethyl alcohol producers; and (B) if the assessment under subparagraph (A) is negative, recommended modifications to the indigenous product percentage requirements that— (i) will ensure meaningful production and employment in the region, (ii) will discourage pass-through operations, and (iii) will not result in harm to producers of ethyl alcohol, or mixtures thereof, in the United States; and (C) an assessment of the effects of imports of ethyl alcohol, and mixtures thereof, from such beneficiary countries and possessions on producers of ethyl alcohol, and mixtures thereof, in the United States. 102 STAT. 1320 Reports. PUBLIC LAW 100-418—AUG. 23, 1988 (2) The United States International Trade Commission and the Comptroller General of the United States shall each submit a report containing the findings and conclusions of the study carried out under this subsection to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate before the 180th day after the date of the enactment of this Act. SEC. 1911. ENFORCEMENT OF RESTRICTIONS ON IMPORTS FROM CUBA. Reports. The United States Trade Representative shall request that all relevant agencies prepare appropriate recommendations for improving the enforcement of restrictions on the importation of articles from Cuba. Such recommendations should include, but not be limited to, appropriate measures to prevent indirect shipments or other means of circumvention. The United States Trade Representative shall, after considering such recommendations, report to the Congress, within 90 days adfter the date of enactment of this Act, on any administrative measures or proposed legislation which the United States Trade Representative considers necessary and appropriate to enforce restrictions on imports from Cuba. SEC. 1912. CUSTOMS FORFEITURE FUND. Section 613A of the Tariff Act of 1930 (19 U.S.C. 1613b) is amended^ (1) by striking out "beginning on the date of the enactment of this section, and ending on September 30, 1987," in subsection (c) and inserting in lieu thereof "described in subsection (a) for which the fund is available to the United States Customs Service,", and (2) by striking out "private citizens" in subsection (aXiii) and inserting in lieu thereof "private persons". PART 2—MISCELLANEOUS TRADE PROVISIONS SEC. 1931. TRADE STATISTICS. (a) REPORTING OF IMPORT STATISTICS.—Subsection (e) of section 301 of title 13, United States Code, is amended by striking out the last sentence thereof. 13 u s e 301 note. Reports. (5) VoLUBCETRIC INDEX.— (1) The Director of the Census, in consultation with the Director of the Bureau of Economic Analysis and the Commissioner of Labor Statistics, shall conduct a study to determine the feasibility of developing, and of publishing, an index that measures the real volume of merchandise trade on a monthly basis, which would be reported simultaneously with the balance of merchandise trade for the United States. (2) The Director of the Census shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report on the study conducted under paragraph (1) by no later than the date that is one year after the date of enactment of this Act. SEC 1932. ADJUSTMENT OF TRADE STATISTICS FOR INFLATION AND DEFLATION. Subsection (e) of section 301 of title 13, United States Code, is amended by adding at the end thereof the following new sentence: "The information required to be reported under this subsection shall PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1321 be reported in a form that is adjusted for economic inflation or deflation (on a constant dollar basis consistent with the reporting of the National Income and Product Accounts), and in a form that is not so adjusted.". SEC. 1933. COAL EXPORTS TO JAPAN. It is the sense of the Congress that— (1) the objectives of the November 1983 Joint Policy Statement on Energy Cooperation, as it relates to United States exports of coal to Japan, have not been achieved; (2) the President should seek to establish reciprocity with Japan with respect to metallurgical coal exports and steel product imports and should encourage increased purchases by Japan of United States steam coal; (3) the President should direct the United States Trade Representative, in n^otiating a Steel Trade Arrangement with Jai)an, to take into consideration, consistent with the President's steel program, the amount of coal that Japan purchases from the United States in determining the level of steel, semifinished steel and fabricated structured steel products that can be imported into the United States; and (4) the President should report to the Congress by November 1,1988 regarding the results of the outcome of any negotiation undertaken in response to this section. SEC 1934. PURCHASES OF UNITED STATES-MADE AUTOMOTIVE PARTS BY JAPAN. (a) FINDINGS.—^The Congress finds that— (1) the United States merchandise trade deficit reached the unprecedented level of $170,000,000,000 in 1986; (2) the United States trade deficit with Japan, which reached $59,000,000,000 in 1986, accounted for approximately one-third of the total deficit; (3) approximately one-half of the United States trade deficit with Japan was in motor vehicles and equipment; (4) while Japanese automobile firms based in Japan produced 7,800,000 passenger cars in 1986 and exported 2,300,000 cars to the United S t a t ^ , United States exports of auto parts to Japan were only about $300,000,000 in 1986; (5) United States automotive parts producers meet increasingly rigorous requirements for quality, just-in-time supply, and competitive pricing in the United States market; and (6) the market-oriented sector specific (MOSS) talks on auto parts are aimed at overcoming substantial market access barriers and increasing the access of United States auto parts producers to the original and replacement parts market represented by Japanese automobiles produced in Japan, the United States, and third countries. (b) SENSE OF CONGRESS.—The Congress— (1) strongly supports efforts being made by United States n^otiators to expand significantly the opportunities for United States automotive parts producers to supply original and replacement parts for Japanese automobiles, wherever those automobiles may be produced; and (2) determines that success of the MOSS talks will be measured by a significant increase in sales by United States auto parts companies to Japanese vehicle companies and the 102 STAT. 1322 PUBLIC LAW 1 0 0 - 4 1 8 - A U G . 23, 1988 initiation of long-term sourcing relationships between such companies, (c) REPORT ON OUTCOME.—The United States Trade Representative and the Secretary of Commerce shall report to Congress at the conclusion of the MOSS talks on the outcome of the talks and on any agreements reached with Japan with respect to purchases by Japanese firms of United States automotive parts. SEC. 1935. EFFECT OF IMPORTS ON CRUDE OIL PRODUCTION AND REFINING CAPACITY IN THE UNITED STATES. Reports. The Secretary of Energy shall send to the Secretary of Commerce the results of the study conducted under section 3102 of the Omnibus Budget Reconciliation Act of 1986. Within 180 days of the receipt of the results of such study, the Secretary of Commerce shall report to the President and the Congress reconmiendations for actions which may be appropriate to address any impact of imports of crude oil and petroleum products on domestic crude oil exploration and production and the domestic petroleum refining capacity. SEC. 1936. STUDY OF TRADE BARRIERS ESTABLISHED BY AUTO PRODUCING COUNTRIES TO AUTO IMPORTS AND THE IMPACT ON THE UNITED STATES MARKET. (a) STUDY.—The United States Trade Representative shall conduct a study of formal and informal barriers which auto producing countries have established toward automobile imports and the impact of such barriers on diverting automobile imports into the United States. The study shall consider the impact of such barriers on automobile imports into the United States in the presence of, and in the absence of, voluntary restraint agreements between the United States and Japan. (b) REPORT.—The United States Trade Representative shall include the foldings of the study conducted under subsection (a) in the first report that is submitted under section 181(b) of the Trade Act of 1974 (19 U.S.C. 2241) after the date of enactment of this Act. SEC. 1937. LAMB MEAT IMPORTS. Within 15 days after the date of the enactment of this Act, the United States International Trade O)mniission, pursuant to section 332(g) of the Tariff Act of 1930 (19 U.S.C. 1332(g)), shall monitor and investigate for a period of 2 years the importation into the United States of articles provided for in item 106.30 of the Tariff Schedules of the United States (19 U.S.C. 1202) (relating to fresh, chilled, and frozen lamb meat). For purposes of any request made under subsection (d) of section 202 of the Trade Act of 1974 (as amended by section 1401 of this Act) within such 2-year period for provisional relief with respect to imports of such articles, the monitoring and investigation required under this section shall be treated as having been requested by the United States Trade Representative under paragraph (1)(B) of such subsection. PART 3—OTHER PROVISIONS SEC. 1941. WINDFALL PROFIT TAX REPEAL. 26 use 4986-4998. (a) IN GENERAL.—Chapter 45 of the Internal Revenue Code of 1986 is repealed. (b) CONFORBONG AMENDMENTS.— PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1323 (1) Sections 6050C, 6076, 6232, 6429, 6430, and 7241 of the Internal Revenue Code of 1986 are repealed. (2XA) Subsection (a) of section 164 of such Code is amended by striking paragraph (4) and redesignating the subsequent paragraphs as paragraphs (4) and (5), respectively. (B) The following provisions of such Code are each amended by striking "44, or 45" each place it appears and inserting "or 44": (i) section 6211(a), (ii) section 6211(bX2), (iii) section 6212(a), (iv) section 6213(a), (v) section 6213(g), (vi) section 6214(c), (vii) section 6214(d), (viii) section 6161(bXl), (ix) section 6344(aXl), and (x) section 7422(e). (C) Subsection (a) of section 6211 of such Code is amended by striking "44, and 45" and inserting "and 44". (D) Subsection (b) of section 6211 of such Code is amended by striking paragraphs (5) and (6). (E) Paragraph (1) of section 6212(b) of such Code is amended— (i) by striking "chapter 44, or chapter 45" and inserting "or chapter 44", and (ii) by striking "chapter 44, chapter 45, and this chapter" and insertii^ "chapter 44, and this chapter". (F) Paragraph (1) of section 6212(c) of such Code is amended— (i) by striking "of chapter 42 tax" and inserting "or of chapter 42 tax", and (ii) by striking ", or of chapter 45 tax for the same taxable period". (G) Subsection (e) of section 6302 of such Code is amended— (i) by striking "(1) For" and inserting "For", and (ii) by striking paragraph (2). (H) Section 6501 of such Code is amended by striking the subsection relating to special rules for windfall profit tax. (I) Section 6511 of such (I!ode is amended by striking subsection (h) and redesignating subsection (i) as subsection (h). (J) Subsection (a) of section 6512 of such CJode is amended— (i) by striking "of tax imposed by chapter 41" and inserting "or of tax imposed by chapter 41", and (ii) by striking ", or of tax imposed by chapter 45 for the same taxable period". (K) Paragraph (1) of section 6512(b) of such Code is amended— (i) by striking "of tax imposed by chapter 41" and inserting "or of tax imposed by chapter 41", and (li) by striking ", or of tax imposed by chapter 45 for the same taxable period". (L) Section 6611 of such Code is amended by striking subsection (h) and redesignating subsections (i) and 0') as subsections (h) and (i), respectively. (M) Subsection (d) of section 6724 of such Code is amended— (i) by striking clause (i) in paragraph (1)(B) and redesignating clauses (ii) through (x) as clauses (i) through (ix), respectively, and 102 STAT. 1324 PUBLIC LAW 100-418—AUG. 23, 1988 (ii) by striking subparagraphs (A) and (K) of paragraph (2) and redesignating subparagraphs (B), (C), (D), (E), (F), (G), (H), (D, (J), (L), (M), (N), (O), (P), (Q), (R), (S), and (D as subparagraphs (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), (K), (L), (M), (N), (O), (P), (Q), and (R), respectively. 26 use 6862. (N) Subsection (a) of section 6862 of such Code is amended by striking "44, and 45" and inserting "and 44". (O) Section 7512 of such Code is amended— (i) by striking ", by chapter 33, or by section 4986" in subsections (a) and (b) and inserting "or chapter 33", and (ii) by striking ", chapter 33, or section 4986" in subsections (b) and (c) and inserting "or chapter 33". (3XA) The table of contents of subtitle D of such Code is amended by striking the item relating to chapter 45. (B) The table of contents of subpart B of part III of subchapter A of chapter 61 of such Code is amended by striking the item relating to section 6050C. (O TTie table of contents of part V of such subchapter is amended by striking the item relating to section 6076. (D) The table of contents of subchapter C of chapter 63 of such Code is amended by striking the item relating to section 6232. (E) The table of contents of subchapter B of chapter 65 of such Code is amended by striking the items relating to sections 6429 and 6430. (F) The table of contents of part II of subchapter A of chapter 75 of such Code is amended by striking the item relating to section 7241. (4XA) Section 280D of such Code is repealed. (B) Tbe table of sections for part IX of subchapter B of chapter 1 of such Code is amended by striking the item relating to section 280D. (5) Paragraph (4) of section 291Q>) of such Code is amended to read as follows: "(4) INTEGRATED OIL CX)MPANY DEFINED.—For purposes of this subsection, the term 'int^rated oil company* means, with respect to any taxable year, any producer of crude oil to whom subsection (c) of section 613A does not apply by reason of paragraph (2) or (4) of section 613A(d)." (6XA) Paragraph (3) of section 6654(f) of such (Dode is amended to read as follows: "(3) the credits against tax provided by part IV of subchapter A of chapter 1, other than the credit against tax provided by section 31 (relating to tax withheld on wages)." (B) Subparagraph (B) of section 6655(gXl) of such Code is amended to read as follows: "(B) the credits against tax provided by part IV of subchapter A of chapter 1." (7) Subparagraph (A) of section 193(bX3) of such Ck)de is amended by strilong "section 4996(bX8XC)" and inserting "section 4996flt)X8XQ as in effect before its repeal". 26 use 164 note. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to crude oil removed from the premises on or after the date of the enactment of this Act. * PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1325 TITLE II—EXPORT ENHANCEMENT SEC. 2001. SHORT TITLE. This title may be referred to as the "Export Enhancement Act of 1988". Erancement Act of 1988. 15 USC 4701 note. Subtitle A—^Trade and Foreign Policy PART I—RELATIONS WITH CERTAIN COUNTRIES SEC. 2101. UNITED STATES-MEXICO FRAMEWORK AGREEMENT ON TRADE AND INVESTMENT. (a) FINDINGS.—The Congress finds that the Bilateral Framework Agreement on Trade and Investment, entered into by the United States and Mexico on November 6,1987— (1) provides a useful vehicle for the management of bilateral trade and investment relations, based on shared principles and objectives; (2) establishes procedures for consultation by the two countries on matters of bilateral trade and investment, and should facilitate resolution of disputes on these matters; and (3) has led to n^otiations between the two countries on important issues, and should continue to facilitate such negotiations. (b) FURTHER IMPLEMENTATION OF THE AGREEMENT.—Within the context of the Bilateral Framework Agreement on Trade and Investment, the President is urged to continue to pursue consultations with representatives of the Government of Mexico for the purposes of implementing the Agreement and achieving an expansion of mutually beneficial trade and investment. SEC 2102. RELATIONS WITH COUNTRIES PROVIDING OFFENSIVE WEAPONRY TO BELUGERENT COUNTRIES IN THE PERSIAN GULF REGION. It is the sense of the Congress that the President should use all available appropriate leverage to persuade all countries to desist from any fiirther transfers of ofiTensive weaponry, such as Silkworm missiles, to any belligerent country in the Persian Gulf region. PART II—FAIR TRADE IN AUTO PARTS SEC. 2121. SHORT TITLE. Fair Trade in Auto Parts Act of 1988. 15 USC 4701 This part may be referred to as the "Fair Trade in Auto Parts Act note. of 1988". SEC 2122. DEFINITION. For purposes of this part, the term "Japanese markets" refers to markets, including those in the United States and Japan, where automotive parts and accessories, both original equipment and aftermarket, are purchased for use in the manufacture or repair of Japanese automobiles. 15 USC 4701. 102 STAT. 1326 15 u s e 4702. Reports. 15 u s e 4703. PUBLIC LAW 100-418—AUG. 23, 1988 SEC. 2123. ESTABLISHMENT OF INITIATIVE ON AUTO PARTS SALES TO JAPAN. (a) I N GENERAL.—The Secretary of Commerce shall establish an initiative to increase the sale of United States-made auto parts and accessories to Japanese markets. G)) FUNCTIONS.—In carrying out this section, the Secretary shall— (1) foster increased access for United States-made auto parts and accessories to Japanese companies, including specific consultations on access to Japanese markets; (2) facilitate the exchange of information between United States auto parts manufacturers and the Japanese automobile industry; (3) collect data and market information on the Japanese automotive industry r ^ a r d i n g needs, trends, and procurement practices, including the tjrpes, volume, and frequency of parts sales to Japanese automobile manufacturers; (4) establish contacts with Japanese automobile manufacturers in order to facilitate contact between United States auto parts manufacturers and Japanese automobile manufacturers; (5) report on and attempt to resolve disputes, policies, or practices, whether public or private, that result in barriers to increased commerce between United States auto parts manufacturers and Japanese automobile manufacturers; (6) take actions to initiate periodic consultations with officials of the Government of Japan regarding sales of United Statesmade auto parts in Japanese markets; and (7) submit annual written reports or otherwise report annually to the Congress on the sale of United States-made auto parts in Japanese markets, including the extent to which longterm, commercial relationships exist between United States auto parts manufacturers and Japanese automobile manufacturers. SEC. 2124. ESTABLISHMENT OF SPECIAL ADVISORY COMMITTEE ON AUTO PARTS SALES IN JAPAN. (a) I N GENERAL.—The Secretary of Commerce shall seek the advice of the United States automotive parts industry in carrjdng out this part. (b) ESTABLISHMENT OF COMMITTEE.—The Secretary of Commerce Reports. shall establish a Special Advisory Committee for purposes of carrying out this part. (c) FUNCTIONS.—The Special Advisory Committee established under subsection Qy) shall— (1) report to the Secretary of Commerce on barriers to sales of United States-made auto parts and accessories in Japanese markets; (2) review and consider data collected on sales of United States-made auto parts and accessories in Japanese markets; (3) advise the Secretary of Commerce during consultations with the Government of Japan on issues concerning sales of United States-made auto parts in Japanese markets; (4) assist in establishing priorities for the initiative established under section 2123, and otherwise provide assistance and direction to the Secretary of Commerce in carrying out the intent of that section; and PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1327 (5) assist the Secretary in reporting, or otherwise report to the Congress as requested, on the prc^ess of sales of United Statesmade auto parts in Japanese markets, (d) AUTHORITY.—^The Secretary of Commerce shall draw on existing budget authority in carrying out this part. SEC. 2125. EXPIRATION DATE. 15 USC 4704. The authorities under this part shall expire on December 31,1993. Subtitle B—Export Enhancement PART I—GENERAL PROVISIONS SEC. 2201. COMMERCIAL PERSONNEL AT THE AMERICAN INSTITUTE OF TAIWAN. 22 USC 3310a. The American Institute of Taiwan shall employ personnel to perform duties similar to those performed by personnel of the United States and Foreign Commercial Service. The number of individuals employed shall be commensurate with the number of United States personnel of the Commercial Service who are permanently assigned to the United States diplomatic mission to South Korea. SEC. 2202. COUNTRY REPORTS ON ECONOMIC POLICY AND TRADE PRACTICES. The Secretary of State shall, not later than January 31 of each year, prepare and transmit to the Committee on Foreign Affairs and the Committee on Ways and Means of the House of Representatives, to the Committee on Foreign Relations and the Committee on Finance of the Senate, and to other appropriate committees of the Congress, a detailed report r^arding the economic policy and trade practices of each country with which the United States has an economic or trade relationship. The Secretary may direct the appropriate officers of the Department of State who are serving overseas, in consultation with appropriate officers or employees of other departments and agencies of the United States, including the Department of Agriculture and the Department of Commerce, to coordinate the preparation of such information in a country as is necessary to prepare the report under this section. The report shall identify and describe, with respect to each country— (1) the macroeconomic policies of the country and their impact on the overall growth in demand for United States exports; (2) the impact of macroeconomic and other policies on the exchange rate of the country and the resulting impact on price competitiveness of United States exports; (3) any change in structural policies (including tax incentives, r^ulations governing financial institutions, production stendards, and patterns of industrial ownership) that may affect the country's growth rate and its demand for United States exports; (4) the management of the country's external debt and its implications for trade with the United States; (5) acts, policies, and practices that constitute significant barriers to United States exports or foreign direct investment in that country by United Stetes persons, as identified under section 181(aXl) of the Trade Act of 1974 (19 U.S.C. 2241(aXl)); 15 USC 4711. 102 STAT. 1328 PUBLIC LAW 100-418—AUG. 23, 1988 (6) acts, policies, and practices that provide direct or indirect government support for exports from that country, including exports by small businesses; (7) the extent to which the country's laws and enforcement of those laws afford adequate protection to United States intellectual property, including patents, trademarks, copyrights, and mask works; and (8) the country's laws, enforcement of those laws, and practices with respect to internationally recognized worker rights (as defined in section 502(aX4) of the Trade Act of 1974), the conditions of worker rights in any sector which produces goods in which United States capital is invested, and the extent of such investment. SEC. 2203. OVERSEAS PRIVATE INVESTMENT CORPORATION. 22 u s e 2191 note. Loans. (a) REAFFIRMATION OF SUPPORT FOR O P I C . — T h e Congress re- affirms its support for the Overseas Private Investment Corporation as a United States Government agency serving important development assistance goals. In order to enhance the Corporation's ability to meet these goals, the Overseas Private Investment Corporation should increase its loan guaranty and direct investment programs. (b) INCREASE IN GUARANTIES AND DIRECT INVESTMENTS.— (1) LOAN GUARANTIES.—Section 235(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2195(a)) is amended— (A) in paragraph (2) by striking "$750,000,000" and inserting "$1,000,000,000"; (B) by redesignating paragraph (5) as paragraph (6); and (C) by inserting after paragraph (4) the following: "(5) Subject to paragraphs (2), (3), and (4), the O)rporation shall issue guaranties under section 234(b) having an aggregate contingent liability with respect to principal of not less than $200,000,000 in each fiscal year, to the extent that there are eligible projects which meet the Corporation's criteria for such guaranties.". (2) DIRECT INVESTMENT.—Section 235(b) of the Foreign Assistance Act of 1961 is amended— (A) by striking the comma after "Act of 1981" and inserting a period; and (B) by striking "and the Corporation shall use" and all that follows through "funding^' and inserting the following: "The Corporation shall msdke loans under section 234(c) in an aggregate amount of not less than $25,000,000 in each fiscal year, to the extent that there are eligible projects which meet the Corporation's criteria for such loans". (c) OPERATIONS OF THE OVERSEAS PRIVATE INVESTMENT CORPORATION IN THE PEOPLE'S REPUBUC OF CHINA.—Section 231A(a) of the 22 u s e 2191a. 22 u s e 2421 note. Foreign Assistance Act of 1961 is amended by adding at the end the following new paragraph: "(4) In making a determination under this section for the People's Republic of China, the Corporation shall discuss fully and completely the justification for making such determination with respect to each item set forth in subparagraphs (A) through (E) of section 502(aX4) of the Trade Act of 1974.". SEC. 2204. TRADE AND DEVELOPMENT PROGRAM. (a) REAFFIRMATION OF SUPPORT FOR TRADE AND DEVELOPMENT PROGRAM.—The Congress reaffirms its support for the Trade and Development Program, and believes that the Program's ability to PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1329 support high priority development projects in developing countries would be enhanced by an increase in the funds authorized for the Program as well as by a clarification of the Program's status as a separate component of the Internationeil Development Cooperation Agency. (b) AUTHORIZATION AND USES OF FUNDS; ESTABLISHMENT AS SEPARATE AGENCY.— (1) ADDITIONAL USES OF FUNDS.—Section 661(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2421(a)) is amended by inserting after the first sentence the following: "Funds under this section may be used to provide support for project planning, development, management, and procurement for both bilateral and multilateral projects, including training activities undertaken in connection with a project, for the purpose of promoting the use of United States exports in such projects.". (2) ESTABLISHMENT AS A SEPARATE AGENCY.—Section 661 of that Act is amended— (A) by redesignating subsection (b) as subsection (d); and (B) by inserting after subsection (a) the following: "(bXD The purposes of this section shall be carried out by the Trade and Development Program, which shall be a separate component agency of the International Development Cooperation Agency. The Trade and Development Program shall not be an agency within the Agency for International Development or any other component agency of the International Development Cooperation Agency. "(2) There shall be at the head of the Trade and Development Program a Director. Any individual appointed as the Director on or President of U.S. after January 1, 1989, shall be appointed by the President, by and with the advice and consent of the Senate. "(3) The Trade and Development Program should serve as the primary Federal agency to provide information to persons in the private sector concerning trade development and export promotion related to bilateral development projects. The Trade and Development Program shall cooperate with the Office of International Major Projects of the Department of Commerce in providing information to persons in the private sector concerning trade development and export promotion related to multilateral development projects. Other Federal departments and agencies shall cooperate with the Trade and Development Program in order for the Program to more effectively provide informational services in accordance with this paragraph. "(4) The Director of the Trade and Development Program shall. Reports. not later than December 31 of each year, submit to the Committee on Foreign Affairs of the House of Representatives and the (Committee on Foreign Relations of the Senate a report on the activities of the Trade and Development Program in the preceding Hscal year. "(c) The Director of the Trade and Development Program shall, by Regulations. regulation, establish an advisory board which shall include representatives of the private sector. The purpose of the advisory board shall be to make recommendations to the Director with respect to the Trade and Development Program.". (3) FUNDING LEVELS.—In addition to funds otherwise available to the President for purposes of section 661 of the Foreign Assistance Act of 1961— (A) not less than $5,000,000 and not more than $10,000,000 for fiscal year 1988 shall be made available for such purposes, half of which shall be derived from amounts 102 STAT. 1330 PUBLIC LAW 100-418—AUG. 23, 1988 available to carry out section 108 of the Foreign Assistance Act of 1961 for such fiscal year, and half of which shall be derived from amounts available to carry out chapter 4 of part n of the Foreign Assistance Act of 1961 for such fiscal year; and (B) not less than $5,000,000 and not more than $10,000,000 for fiscal year 1989 shall be made available for such purposes, half of which shall be derived from amounts available to carry out section 108 of the Foreign Assistance Act of 1961 for such fiscal year, and half of which shall be derived from amounts available to carry out chapter 4 of part n of the Foreign Assistance Act of 1961 for such fiscal year. (4) ADDITIONAL FUNDING.—(A) In addition to the amounts Education. Education. otherwise available to the President for purposes of section 661 of the Foreign Assistance Act of 1961 (including amounts available under paragraph (3) of this subsection) for fiscal years 1988 and 1989, there are authorized to be appropriated $10,000,000 for each such fiscal year for education and training programs undertaken in connection with projects under section 661 of that Act, including the operating expenses incurred in implementing such programs. Particular emphasis shall be placed on including in such progrsmis nationals from the People's Republic of China and the Republic of China (Taiwan). Assistance may be provided for education and training under this paragraph only if there is a reasonable expectation that such education and training will result in increased exports from the United States and will not have a negative impact on employment in the United States. (B) Of the funds made available to carry out subparagraph (A), 50 percent of such funds shall be avsulable only for education and training p r c ^ a m s administered in the United States by small business concerns as defined under section 3 of the Small Business Act (15 U.S.C. 632). (c) AUTHORITIES UNDER THE TRADE AND DEVELOPMENT ENHANCEMENT ACT OF 1983.— (1) TRANSFER OF FUNCTIONS FROM AID TO TDP.—(A) SectioU 6 4 4 of the Trade and Development Enhancement Act of 1983 (12 U.S.C. 635q) is amended— (i) in subsection (aX2) by striking "Agency for International Development" and inserting "Trade and Development Program"; (ii) in subsection (aX3XA)— (I) by striking "offered by the Agency for International Development" and inserting "made available under section 645(d) of this Act"; and CH) by striking "Agency for International Development" and inserting "Trade and Development Program"; and (iii) in subsection (d)— (I) by striking "offered by the Agency for International Development" and inserting "made available under section 645(d) of this Act"; and (II) by striking "subsections (c) and (d) of section 645" and inserting "section 645(c)". (B) Section 645 of that Act (12 U.S.C. 635r) is amended— PUBLIC LAW 100-418-AUG. 23,1988 102 STAT. 1331 (i) in the section heading by striking "IN THE AGENCY FOR INTERNATIONAL DEVELOPMENT" and inserting "ADMINISTERED BY THE TRADE AND DEVELOPMENT PROGRAM"; (ii) in subsection (a)— (I) by striking "Administrator of the Agency for International Development shall establish within the Agency" and inserting "Director of the Trade and Development Program shall carry out"; (II) in paragraph (1) by striking "offered by the Agency for International Development" and inserting "made available under subsection (d)"; (III) in paragraph (1) by striking "Agency for International Development" and inserting "Trade and Development Program"; (IV) in paragraph (2) by striking "offered by the Agency for International Development" and inserting "made available under subsection (d)"; and (V) in paragraph (2) by striking "Agency for International Development" and inserting Trade and Development Program"; (iii) in subsection (c>— (I) in paragraph (1) by striking "of the Agency for International Development"; and (II) in paragraph (2) by striking "Administrator of the Agency for International Development" and inserting "Director of the Trade and Development Program"; and (iv) by amending subsection (d) to read as follows: "(d) Funds available to carry out chapter 4 of part II of the Foreign Assistance Act of 1961 may be used by the Director of the Trade and Development Program, with the concurrence of the Secretary of State (as provided under section 531 of the Foreign Assistance Act of 1961), for the purposes for which funds made available under this subsection are authorized to be used in section 644 and this section. The Secretary of State shall exercise his authority in cooperation with the Administrator of the Agency for International Development. Funds made available pursuant to this subsection may be used to finance a tied aid credit activity in any country eligible for tied aid credits under this Act.". (2) FUNCTIONS OF NATIONAL ADVISORY COUNCIL ON INTERNATIONAL MONETARY AND FINANCIAL POUCIES.—Section 646 of the Trade and Development Enhancement Act of 1983 (12 U.S.C. 635s) is amended by adding at the end the following: "(b) The Trade and Development Program shall be represented at any meetings of the National Advisory Council on International Monetary and Financial Policies for discussion of tied aid credit matters, and the representetive of the Trade and Development Program at any such meeting shall have the right to vote on any decisions of the Advisory Council relating to tied aid credit matters.". (d) ADMINISTRATIVE PROVISIONS.— (1) PAY OF DIRECTOR OF TDP.—Section 5314 of title 5, United States Code, is amended by adding at the end the following: "Director, Trade and Development Program.". (2) TRANSITION PROVISIONS.—(A) The Administrator of the Records. Agency for International Development shall transfer to the ^°*^*®Director of the Trade and Development Program all records, ^ ^ ^^^ 102 STAT. 1332 PUBLIC LAW 100-418—AUG. 23, 1988 contracts, applications, and any other documents or information in connection with the functions transferred by virtue of the amendments made by subsection (cXl). (B) All determinations, regulations, and contracts— (i) which have been issued, made, granted, or allowed to become effective by the President, the Agency for International Development, or by a court of competent jurisdiction, in the performance of the functions transferred by virtue of the amendments made by subsection (cXD, and (ii) which are in effect at the time this section takes effect, shall continue in effect according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with the law by the President, the Director of the Trade and Development P r c ^ a m , or other authorized official, by a court of competent jur^diction, or by operation of law. (CXi) The amendments made by subsection (cXD shall not affect any proceedings, including notices of proposed rulemaking, or any application for any financial assistance, which is pending on the effective date of this section before the Agency for International Development in the exercise of functions transferred by virtue of the amendments made by subsection (cXl). Such proceedings and applications, to the extent that they relate to functions so transferred, shall be continued. (ii) Orders shall be issued in such proceedings, appeals shall be taken therefrom, and payments shall be made pursuant to such orders, as if this section had not been enacted. Orders issued in any such proceedings shall continue in effect until modified, terminated, superseded, or revoked by the Director of the Trade and Development Program or other authorized official, by a court of competent jurisdiction, or by operation of law. (iii) Nothing in this subparagraph shall be deemed to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this section had not been enacted. (iv) The Director of the Trade and Development Program is authorized to issue regulations providing for the orderly transfer to the Trade and Development Program of proceedings continued under this subparagraph. (D) With respect to any function transferred by virtue of the amendments made by subsection (cXD and exercised on or after the effective date of this section, reference in any other Federal law to the Agency for International Development or any officer shall be deemed to refer to the Trade and Development Program or other official to which such function is so transferred. 15 use 4712. SEC. 2205. BARTER AND COUNTERTRADE. (a) INTERAGENCY GROUP.— President of U.S. (1) ESTABLISHMENT.—The President shall establish an interagency group on countertrade, to be composed of representatives of such departments and agencies of the United States as the President considers appropriate. The Secretary of Commerce shall be the chairman of the interagency group. (2) FUNCTIONS.—It shall be the function of the interagency group to— (A) review and evaluate— PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1333 (i) United States policy on countertrade and offsets, in light of current trends in international countertrade and offsets and the impact of those trends on the United States economy; (ii) the use of countertrade and offsets in United States exports and bilateral United States foreign economic assistance programs; and (iii) the need for and the feasibility of negotiating with other countries, through the Organization for EIconomic Cooperation and Development and other appropriate international organizations, to reach agreements on the use of countertrade and offsets; and (B) make recommendations to the President and the Congress on the basis of the review and evaluation referred to in subparagraph (A). (3) SHARING OF INFORMATION.—Other departments and agen- Classified cies of the United States shall provide to the interagency group information. such information available to such departments and agencies as the interagency group may request, except that the requirements, including penalties for violation thereof, for preserving the confidentiality of such information which are applicable to the officials, employees, experts, or consultants of such departments and agencies shall apply in the same manner to each member of the interagency group and to any other person performing any function under this subsection, (b) OFFICE OF BARTER.— (1) ESTABLISHMENT—^There is established, within the International Trade Administration of the Department of Commerce, the Office of Barter (hereafter in this section referred to as the "Office"). (2) DIRECTOR.—There shall be at the head of the Office a Director, who shall be appointed by the Secretary of Commerce. (3) STAFF.—^The Secretary of Commerce shall transfer such staff to the Office as the Secretary determines is necessary to enable the Office to carry out its functions under this section. (4) FUNCTIONS.—It shall be the function of the Office to— (A) monitor information relating to trends in international barter; (B) organize and disseminate information relating to international barter in a manner useful to business firms, educational institutions, export-related Federal, State, and local government agencies, and other interested persons, including publishing periodic lists of known commercial opportunities for barter transactions beneficial to United States enterprises; (C) notify Federal agencies with operations abroad of instances where it would be beneficial to the United States for the Federal Government to barter Government-owned surplus commodities for goods and services purchased abroad by the Federal Government; and (D) provide assistance to enterprises seeking barter and countertrade opportunities. SEC. 2206. PROTECTION OF UNITED STATES INTELLECTUAL PROPERTY. It is the sense of the Congress that— (1) the Secretary of State should urge international technical organizations, such as the World Intellectual Property Public information. State and local governments. Education. 102 STAT. 1334 PUBLIC LAW 100-418—AUG. 23, 1988 Organization, to provide expertise and cooperate fully in developing effective standards, in the General Agreement on Tariffs and Trade, for the international protection of intellectual property rights; and (2) development assistance programs administered by the Agency for International Development, especially the reimbursable development program, should, in cooperation with the Cop3rright Office and the Patent and Trademark Office, include technical training for officials responsible for the protection of patents, copyrights, trademarks, and mask works in those countries that receive such development assistance. SEC. 2207. REPORT ON WORKER RIGHTS. The Secretary of State shall conduct an in-depth study with a view to improving the breadth, content, and utility of the annual reports submitted to the Congress pursuant to section 505(c) of the Trade Act of 1974 regarding the status of internationally recognized worker rights in foreign countries. Not later than 6 months after the date of the enactment of this Act, the Secretary shall submit a report to the Congress on the findings of such study and shall include in the report recommendations for upgrading the capacity of the United States Government to monitor and report on other countries' respect for such rights. SEC. 2208. JAPANESE IMPORTATION OF MANUFACTURED GOODS FROM LESS DEVELOPED COUNTRIES. (a) FINDINGS.—The Congress finds that— (1) Japan's merchandise trade surplus rose from $62,000,000,000 in fiscal year 1985 to $101,000,000,000 in fiscal year 1986; (2) these surpluses pose a grave threat to the free trade system; (3) Japan's most important contribution to the international trading system would be to commit itself as a nation to import with vigor, just as it has exported with vigor in recent decades; (4) Japan should particularly increase its imports of manufactured goods; and (5) Japan's share of the exports of less developed countries has declined from 10.6 percent in 1979 to below 8 percent in 1985. Ot)) SENSE OF CONGRESS.—It is the sense of the Congress that— (1) by taking its proportionate share of the manufactured exports of developing countries, Japan will promote not only its economic development but the economic conditions conducive to democracy; (2) expanding markets for the manufactured exports of less developed countries will directly benefit the United States, and, if less developed countries are able to increase exports to Japan, these countries will be able to earn more of the hard currency needed to service their foreign debt obligations and make the investments necessary to chart a course of solid economic growth; and (3) if less developed countries are able to export manufactured goods to Japan, they will be under less pressure to divert exports to the United States market. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1335 SEC. 2209. JAPAN AND THE ARAB BOYCOTT OF ISRAEL. It is the sense of the Congress that the United States should encourage the Government of Japan in its efforts to expand trade relations with Israel and to end compliance by Japanese commercial enterprises with the Arab economic boycott of Israel. SEC. 2210. FACILITATION OF JEWELRY TRADE. It is the sense of the Congress that the United States should become a party to the Convention on the Control and Marking of Articles of Precious Metals in order to facilitate the efforts of the United States jewelry industry in penetrating foreign markets. SEC. 2 2 n . LOAN GUARANTEES. Section 108 of the Foreign Assistance Act of 1961 (22 U.S.C. 2151f) is amended by adding at the end the following: "(i)(l) To carry out the purposes of subsection (a), in addition to the other authorities set forth in this section, the agency primarily responsible for administering this part is authorized to issue guarantees on such terms and conditions as it shall determine Eissuring against losses incurred in connection with loans made to projects that meet the criteria set forth in subsection (c). The full faith and credit of the United States is hereby pledged for the full payment and performance of such guarantees. "(2) Loans guaranteed under this subsection shall be on such terms and conditions as the agency niay prescribe, except for the following: "(A) The agency shall issue guarantees only when it is necessary to alleviate a credit market imperfection. "(B) Loans guaranteed shall provide for complete amortization within a period not to exceed ten years or, if the principal purpose of the guaranteed loan is to finance the construction or purchase of a physical asset with a useful life of less than ten years, within a period not to exceed such useful life. "(C) No loan guaranteed to any one borrower may exceed 50 percent of the cost of the activity to be financed, or $3,000,000, whichever is less, as determined by the agency. "(D) No loan may be guaranteed unless the agency determines that the lender is responsible and that adequate provision is made for servicing the loan on reasonable terms and protecting the financial interest of the United States. "(E) The fees earned from the loan guarantees issued under this subsection shall be deposited in the revolving fund account as part of the guarantee reserve established under paragraph (5) of this subsection. Fees shall be assessed at a level such that the fees received, plus the funds from the revolving fund account placed in the guarantee reserve, satisfy the requirements of paragraph (5). Fees shall be reviewed every twelve months to ensure that the fees assessed on new loan guarantees are at the required level. "(F) Any guarantee shall be conclusive evidence that such guarantee has been properly obtained, and that the underlying loan as contracted qualifies for such guarantee. Except for fraud or material misrepresentation for which the parties seeking payment under such guarantee are responsible, such guarantee shall be presumed to be valid, legal, and enforceable. "(G) The agency shall determine that the standards used by the lender for assessing the credit risk of new and existing 102 STAT. 1336 PUBLIC LAW 100-418—AUG. 23, 1988 guaranteed loans are reasonable. The agency shall require that there be a reasonable assurance of repayment before credit assistance is extended. "(H) Commitments to guarantee loans may be made by the agency only to the extent that the total loan principal, any part of which is guaranteed, will not exceed the amount specified in annual appropriations Acts. "(3) To the extent that fees are not sufficient as specified under paragraph (2XE) to cover expected future liabilities, appropriations are authorized to maintain an appropri£ite reserve. "(4) The losses guaranteed under this subsection may be in dollars or in other currencies. In the case of \oax\s in currencies other than dollars, the guarantees issued shall be subject to an overall payment limitation expressed in dollars. "(5) The agency shall segregate in the revolving fund account and hold as a reserve an amount estimated to be sufficient to cover the agency's expected net liabilities on the loan guarantees outstanding under this subsection; except that the amount held in reserve shall not be less than 25 percent of the principal amount of the agency's outstanding contingent liabilities on such guarantees. Any payments made to discharge liabilities arising from the loan guarantees shall be paid first out of the assets in the revolving fund account and next out of other funds made available for this purpose.". American Aid to PART II—ASSISTANCE TO POLAND Poland Act of 1988. SEC. 2221. SHORT TITLE. 7 u s e 1421 note. This part may be cited as the "American Aid to Poland Act of 1988". SEC. 2222. FUNDING FOR SCIENCE AND TECHNOLOGY AGREEMENT. (a) FUNDING.—For purposes of implementing t h e 1987 United States-Polish science and technology agreement, there are authorized to be appropriated to the Secretary of State for fiscal year 1988, $1,000,000. 0)) AVAILABILITY OF FUNDS.—Amounts appropriated under subsection (a) are authorized to remain available until expended. (c) DEFINITION.—For purposes of this section, t h e term "1987 United States-Polish science and technology agreement" refers to the draft agreement concluded in 1987 by the United States and Poland, entitled "Agreement Between t h e Government of the United States of America and the Polish People's Republic on Cooperation in Science and Technology and Its Funding", together with annexes relating thereto. 7 u s e 1431 note. SEC. 2223. DONATION OF SURPLUS AGRICULTURAL COMMODITIES. (a) AUTHORITY TO DONATE.—Notwithstanding any other provision of law, the Secretary of Agriculture shall donate, under the applicable provisions of section 4160)) of the Agricultural Act of 1949, for each of the fiscal years 1988 through 1992, 8,000 metric tons of uncommitted stocks of eligible commodities of the Commodity Credit Corporation under an agreement with the Government of Poland that the Government of Poland will sell such commodities and that all the proceeds from such sales will be used by nongovernmental agencies for eligible activities in Poland described in section 416(bX7XDXii) of that Act (as amended by section 2225 of this Act) that have been approved, upon application, by the joint commission I*»5?l?^^g9"=.^- PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1337 described in section 2226 and by the United States chief of diplomatic mission in Poland. (b) DEFINITIONS.—For purposes of this section— (1) the term "eligible commodities" has the same meaning as is given such term in section 416(b)(2) of the Agricultural Act of 1949 and, in addition, includes feed grains; and (2) the term "nongovernmental agencies" includes nonprofit voluntary agencies, cooperatives, intergovernmental agencies such as the World Food Program, and other multilateral organizations. SEC. 2224. USE OF POLISH CURRENCIES. 7 u s e 1431 note. (a) USE OF POLISH CURRENCIES.—Subject to subsection (b), nonconvertible Polish currencies (zlotys) held by the United States on the date of enactment of this Act pursuant to an agreement with the Government of Poland under the Agricultural Trade Development and Assistance Act of 1954 which are not assets of the Commodity Credit Corporation shall be made available, to the extent and in such amounts as are provided in advance in appropriation Acts, for eligible activities in Poland described in section 416(b)(7)(D)(ii) of the Agricultural Act of 1949 (as amended by section 2225 of this Act) and approved, upon application, by the joint commission described in section 2226 and by the United States chief of diplomatic mission in Poland. (b) AvAiLABiuTY OF CURRENCIES.—Currencies available under subsection (a) are currencies available after satisfaction of existing commitments to use such currencies for other purposes specified by law. SEC. 2225. ELIGIBLE ACTIVITIES. Section 416(b)(7)(D)(ii) of the Agricultural Act of 1949 is amended by adding at the end the following: "In addition, foreign currency proceeds generated in Poland may also be used by such agencies or cooperatives for eligible activities approved by the joint commission established pursuant to section 2226 of the American Aid to Poland Act of 1988 and by the United States chief of diplomatic mission in Poland that would improve the quality of life of the Polish people and would strengthen and support the activities of private, nongovernmental independent institutions in Poland. Activities eligible under the preceding sentence include— "(I) any project undertaken in Poland under the auspices of the Charitable Commission of the Polish Catholic Episcopate for the benefit of handicapped or orphaned children; "(II) any project for the reconstruction, renovation, or maintenance of the Research Center on Jewish History and Culture of the Jagiellonian University of Krakow, Poland, established for the study of events related to the Holocaust in Poland; and "(III) any other project or activity which strengthens and supports private and independent sectors of the Polish economy, especially independent farming and agriculture.". 7 u s e 1431. SEC. 2226. JOINT COMMISSION. 7 u s e 1431 note. (a) ESTABLISHMENT.—The joint commission referred to in sections 2223 and 2224 and in section 416(b)(7)(D)(ii) of the Agricultural Act of 1949 (as amended by section 2225 of this Act) shall be established under an agreement between the United States Government, the Handicapped persons. Children and youth. Agriculture and agricultural commodities. 102 STAT. 1338 PUBLIC LAW 100-418—AUG. 23, 1988 Government of Poland, and nongovernmental agencies (as defined in section 2223) operating in Poland. (b) MEMBERSHIP.—The joint commission shall be composed of— (1) appropriate representatives of the Government of Poland; (2) appropriate representatives of nongovernmental agencies which are parties to the agreement described in subsection (a); and (3) representatives from the United States diplomatic mission in Poland, which may include a representative of the Foreign Agricultural Service. SEC. 2227. PROVISION OF MEDICAL SUPPLIES AND HOSPITAL EQUIPMENT TO POLAND. In addition to amounts authorized to be appropriated to carry out chapter 4 of part II of the Foreign Assistance Act of 1961 (relating to the economic support fund) for fiscal years 1988 and 1989, there are authorized to be appropriated to carry out that chapter for each such fiscal year $2,000,000, which shall be available only for providing medical supplies and hospital equipment to Poland through private and voluntary organizations, including for the expenses of purchasing, transporting, and distributing such supplies and equipment. Subtitle C—Export Promotion 15 u s e 4721. SEC. 2301. UNITED STATES AND FOREIGN COMMERCIAL SERVICE. (a) ESTABLISHMENT.— (1) I N GENERAL.—The Secretary of Commerce shall establish, within the International Trade Administration, the United States and Foreign Commercial Service. The Secretary shall, to the greatest extent practicable, transfer to the Commercial Service the functions and personnel of the United States and Foreign Commercial Services. (2) ASSISTANT SECRETARY OF COMMERCE AND DIRECTOR GENERAL; OTHER PERSONNEL.—The head of the Commercial Service shall be the Assistant Secretary of Commerce and Director General of the Commercial Service, who shall be appointed by the President, by and with the advice and consent of the Senate. The Assistant Secretary of Commerce and Director General of the Commercial Service may appoint Commercial Service Officers and such other personnel as may be necessary to carry out the activities of the Commercial Service. (3) COORDINATION WITH FOREIGN POLICY OBJECTIVES.—The Secretary shall take the necessary steps to ensure that the activities of the Commercial Service are carried out in a manner consistent with United States foreign policy objectives, and the Secretary shall consult regularly with the Secretary of State in order to comply with this paragraph. (4) AUTHORITY OF CHIEF OF MISSION.—All activities of the Commercial Service shall be subject to section 207 of the Foreign Service Act of 1980 (22 U.S.C. 3927). (b) STATEMENT OF PURPOSE.—The Commercial Service shall place primary emphasis on the promotion of exports of goods and services from the United States, particularly by small businesses and medium-sized businesses, and on the protection of United States business interests abroad by carrying out activities such as— PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1339 (1) identifying United States businesses with the potential to export goods and services and providing such businesses with advice and information on estabUshing export businesses; (2) providing United States exporters with information on economic conditions, market opportunities, the status of the intellectual property system in such country, and the legal and regulatory environment within foreign countries; (3) providing United States exporters with information and advice on the necessary adaptation of product design and marketing strategy to meet the differing cultural and technical requirements of foreign countries; (4) providing United States exporters with actual leads and an introduction to contacts within foreign countries; (5) assisting United States exporters in locating reliable sources of business services in foreign countries; (6) assisting United States exporters in their dealings with foreign governments and enterprises owned by foreign governments; and (7) assisting the coordination of the efforts of State and local agencies and private organizations which seek to promote United States business interests abroad so as to maximize their effectiveness and minimize the duplication of efforts. Patents and trademarks. Copyrights. Marketing, State and local governments. (c) OFFICES.— (1) IN GENERAL.—The Commercial Service shall conduct its activities at a headquarters office, district offices located in major United States cities, and foreign offices located in major foreign cities. (2) HEADQUARTERS.—The headquarters of the Commercial Research and Service shall provide such managerial, administrative, research, development. and other services as the Secretary considers necessary to carry out the purposes of the Commercial Service. (8) DISTRICT OFFICES.—The Secretary shall establish district offices of the Commercial Service in any United States city in a region in which the Secretary determines that there is a need for Federal Government export assistance. (4) FOREIGN OFFICES.—(A) The Secretary may, after consultation with the Secretary of State, establish foreign offices of the Commercial Service. These offices shall be located in foreign cities in regions in which the Secretary determines there are significant business opportunities for United States exporters. (B) The Secretary may, in consultation with the Secretary of State, assign to the foreign offices Commercial Service Officers and such other personnel as the Secretary considers necessary. In employing Commercial Service Officers and such other personnel, the Secretary shall use the Foreign Service personnel system in accordance with the Foreign Service Act of 1980. The Secretary shall designate a Commercial Officer as head of each foreign office. (C) Upon the request of the Secretary, the Secretary of State shall attach the Commercial Service Officers and other employees of each foreign office to the diplomatic mission of the United States in the country in which that foreign office is located, and shall obtain for them diplomatic privileges and immunities equivalent to those enjoyed by Foreign Service personnel of comparable rank and salary. (D) For purposes of official representation, the senior Commercial Service Officer in each country shall be considered 102 STAT. 1340 PUBLIC LAW 100-418—AUG. 23, 1988 to be the senior commercial representative of the United States in that country, and the United States chief of mission in that country shall accord that officer all privileges and responsibilities appropriate to the position of senior commercial representative of other countries. (E) The Secretary of State is authorized, upon the request of the Secretary, to provide office space, equipment, facilities, and such other administrative and clerical services as may be required for the operation of the foreign offices. The Secretary is authorized to reimburse or advance funds to the Secretary of State for such services. (F) The authority of the Secretary under this paragraph shall be subject to section 103 of the Diplomatic Security Act (22 U.S.C. 4802). (d) RANK MISSIONS.— OF COMMERCIAL SERVICE OFFICERS IN FOREIGN (1) MINISTER-COUNSELOR.—Notwithstanding any other provision of law, the Secretary is authorized to designate up to 8 United States missions abroad at which the senior Commercial Service Officer will be able to use the diplomatic title of Minister-Counselor. The Secretary of State shall accord the diplomatic title of Minister-Counselor to the senior Commercial Service Officer assigned to a United States mission so designated. (2) CONSUL GENERAL.—In any United States consulate in Reports. which a vacancy occurs in the position of Consul General, the Secretary of State, in consultation with the Secretary, shall consider filling that vacancy with a Commercial Service Officer if the primary functions of the consulate are of a commercial nature and if there are significant business opportunities for United States exporters in the region in which the consulate is located. (e) INFORMATION DISSEMINATION.—In order to carry out subsection Ot))(7), to lessen the cost of distribution of information produced by the Commercial Service, and to make that information more readily available, the Secretary should establish a system for distributing that information in those areas where no district offices of the Commercial Service are located. Distributors of the information should be State export promotion agencies or private export and trade promotion associations. The distribution sjrstem should be consistent with cost recovery objectives of the Department of Commerce. (f) AUDITS.—^The Inspector General of the Department of Commerce shall perform periodic audits of the operations of the Commercial Service, but at least once every 3 years. The Inspector Greneral shall report to the Congress the results of each such audit. In addition to an overview of the activities and effectiveness of Commercial Service operations, the audit shall include— (1) an evaluation of the current placement of domestic personnel and recommendations for transferring personnel among district offices; (2) an evaluation of the current placement of foreign-based personnel and recommendations for transferring such personnel in response to newly emerging business opportunities for United States exporters; and (3) an evaluation of the personnel system and its management, including the recruitment, assignment, promotion, and PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1341 performance appraisal of personnel, the use of limited appointees, and the "time-in-class" system, (g) REPORT BY THE SECRETARY.—Not later than 1 year after the date of the enactment of this Act, the Secretary shall submit a report to the Congress on the feasibility and desirability, the progress to date, the present status, and the 5-year outlook, of the comprehensive integration of the functions and personnel of the foreign and domestic export promotion operations within the International Trade Administration of the Department of Commerce, (h) PAY OF ASSISTANT SECRETARY AND DIRECTOR GENERAL.—Sec- tion 5315 of title 5, United States Code, is amended by adding at the end the following: "Assistant Secretary of Commerce and Director General of the United States and Foreign Commercial Service.". (i) DEFINITIONS.—For purposes of this section— (1) the term "Secretary" means the Secretary of Commerce; (2) the term "Commercial Service" means the United States and Foreign Commercial Service; (3) the term "United States exporter" means— (A) a United States citizen; (B) a corporation, partnership, or other association created under the laws of the United States or of any State; or (C) a foreign corporation, partnership, or other Eissociation, more than 95 percent of which is owned by persons described in subparagraphs (A) and (B), that exports, or seeks to export, goods or services produced in the United States; (4) the term "small business" means any small business concern £is defined under section 3 of the Small Business Act (15 U.S.C. 632); (5) the term "State" means any of the several States, the District of Columbia, or any commonwealth, territory, or possession of the United States; and (6) the term "United States" means the several States, the District of Columbia, and any commonwealth, territory, or possession of the United States. SEC. 2302. COMMERCIAL SERVICE OFFICERS AND DEVELOPMENT BANK PROCUREMENT. MULTILATERAL 15 USC 4722. (a) APPOINTMENT OF COMMERCIAL SERVICE OFFICERS TO SERVE WITH EXECUTIVE DIRECTORS.—The Secretary of Commerce, in consultation with the Secretary of the Tresisury, shall appoint a procurement officer, who is a representative of the International Trade Administration or a Commercial Service Officer of the United States and Foreign Commercial Service, to serve, on a full-time or part-time basis, with each of the Executive Directors of the multilateral development banks in which the United States participates. OJ) FUNCTIONS OF OFFICERS.—Each procurement officer appointed under subsection (a) shall assist the United States Executive Director with respect to whom such officer is appointed in promoting opportunities for exports of goods and services from the United States by doing the following: (1) Acting as the liaison between the business community and the multilateral development bank involved, whether or not the bank has offices in the United States. The Secretary of Commerce shall ensure that the procurement officer has access to, and disseminates to United States businesses, information relat- 102 STAT. 1342 Loans. 15 use 4723. Contracts. State and local governments. PUBLIC LAW 100-418—AUG. 23, 1988 ing to projects which are being proposed by the multilateral development bank, and bid specifications and deadlines for projects about to be developed by the bank. The procurement officer shall make special efforts to disseminate such information to small and medium-sized businesses interested in participating in such projects. The procurement officer shall explore opportunities for disseminating such information through private sector, nonprofit organizations. (2) Taking actions to assure that United States businesses are fully informed of bidding opportunities for projects for which loans have been made by the multilateral development bank involved. (3) Taking actions to assure that United States businesses can focus on projects in which they have a particular interest or competitive advantage, and to permit them to compete and have an equal opportunity in submitting timely and conforming bidding documents. (c) DEFINITION.—As used in this section, the term "multilateral development bank" includes the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Inter-American Development Bank, the Inter-American Investment Corporation, the Asian Development Bank, the African Development Bank, and the African Development Fund. SEC. 2303. MARKET DEVELOPMENT COOPERATOR PROGRAM. (a) AUTHORITY OF SECRETARY OF COMMERCE.—In order to promote further the exportation of goods and services from the United States, the Secretary of Commerce is authorized to establish, in the International Trade Administration of the Department of Commerce, a Market Development Cooperator Program. The purpose of the program is to develop, maintain, and expand foreign markets for nonagricultural goods and services produced in the United States. (b) IMPLEMENTATION OF THE PROGRAM.—The Secretary of Commerce shall carry out the Market Development Cooperator Program by entering into contracts with— (1) nonprofit industry organizations, (2) trade associations, (3) State departments of trade and their regional associations, including centers for international trade development, and (4) private industry firms or groups of firms in cases where no entity described in paragraph (1), (2), or (3) represents that industry, (in this section referred to as "cooperators") to engage in activities in order to carry out the purpose of the Market Development Cooperator Program set forth in subsection (a). The costs of activities under such a contract shall be shared equitably among the Department of Commerce, the cooperator involved, and, whenever appropriate, foreign businesses. The Department of Commerce shall undertake to support direct costs of activities under such a contract, and the cooperator shall undertake to support indirect costs of such activities. Activities under such a contract shall be carried out by the cooperator with the approval and assistance of the Secretary. (c) COOPERATOR PARTNERSHIP PROGRAM.— (1) I N GENERAL.—(A) As part of the Market Development Cooperator Program established under subsection (a), the Secretary of Commerce shall establish a partnership program with PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1343 cooperators under which a cooperator may detail individuals, subject to the approval of the Secretary, to the United States and Foreign Commercial Service for a period of not less than 1 year or more than 2 years to supplement the Commercial Service. (B) Any individual detailed to the United States and Foreign Commercial Service under this subsection shall be responsible for such duties as the Secretary may prescribe in order to carry out the purpose of the Market Development Cooperator Program set forth in subsection (a). (C) Individuals detailed to the United States and Foreign Commercial Service under this subsection shall not be considered to be employees of the United States for the purposes of any law administered by the Office of Personnel Management, except that the Secretary of State may determine the applicability to such individuals of section 2(f) of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2669(f)) and of any other law administered by the Secretary of State concerning the detail of such individuals abroad. (2) QUALIFICATIONS OF PARTICIPANTS.—In order to qualify for the program established under this subsection, individuals shall have demonstrated expertise in the international business arena in at least 2 of the following areas: marketing, market research, and computer data bases. (3) EXPENSES OF THE PROGRAM.—(A) The cooperator who details an individual to the United States and Foreign Commercial Service under this subsection shall be responsible for that individual's salary and related expenses, including health care, life insurance, and other noncash benefits, if any, normally paid by such cooperator. (B) The Secretary of Commerce shall pay transportation and housing costs for each individual participating in the program established under this subsection, (d) BUDGET ACT.—Contracts may be entered into under this sec- Contracts. tion in a fiscal year only to such extent or in such amounts as are provided in appropriations Acts. SEC. 2304. TRADE SHOWS. (a) AUTHORITY OF THE SECRETARY OF COMMERCE.—In order to facilitate exporting by United States businesses, the Secretary of Commerce shall provide assistance for trade shows in the United States which bring together representatives of United States businesses seeking to export goods or services produced in the United States and representatives of foreign companies or governments seeking to buy such goods or services from these United States businesses. (b) RECIPIENTS OF ASSISTANCE.—Assistance under subsection (a) may be provided to— (1) nonprofit industry organizations, (2) trade associations, (3) foreign trade zones, and (4) private industry firms or groups of firms in cases where no entity described in paragraph (1), (2), or (3) represents that industry, to provide the services necessary to operate trade shows described in subsection (a). 15 USC 4724. 102 STAT. 1344 PUBLIC LAW 100-418—AUG. 23, 1988 (c) ASSISTANCE TO SMALL BUSINESSES.—In providing assistance under this section, the Secretary of Commerce shall, in consultation with the Administrator of the Small Business Administration, make special efforts to facilitate participation by small businesses and companies new to export. (d) USES OF ASSISTANCE.—Funds appropriated to carry out this section shall be used to— (1) identify potential participants for trade show organizers, (2) provide information on trade shows to potential participants, (3) supply language services for participants, and (4) provide information on trade shows to small businesses and companies new to export. (e) DEFINITIONS.—As used in this section— (1) the term "United States business" means— (A) a United States citizen; (B) a corporation, partnership, or other association created under the laws of the United States or of any State (including the District of Columbia or any commonwealth, territory, or possession of the United States); or (C) a foreign corporation, partnership, or other association, more than 95 percent of which is owned by persons described in subparagraphs (A) and (B); and (2) the term "small business" means any small business concern as defined under section 3 of the Small Business Act (15 US.C. 632). SEC. 2305. AUTHORIZATION OF APPROPRIATIONS FOR EXPORT PROMOTION PROGRAMS. (a) DEFINITION OF EXPORT PROMOTION PROGRAM.—Section 201(d) of the Export Administration Amendments Act of 1985 (15 U.S.C. 4051(d)) is amended— (1) in paragraph (3) by striking "and" after the semicolon; (2) in paragraph (4) by striking the period and inserting "; and"; and (3) by adding at the end the following: "(5) the Market Development Cooperator Program established under section 2303 of the Export Enhancement Act of 1988, and assistance for trade shows provided under section 2304 of that Act.". (b) AUTHORIZATION OF APPROPRIATIONS.—(1) Section 202 of 15 use 4725. Japan. South Korea. Taiwan. the Export Administration Amendments Act of 1985 (15 U.S.C. 4052) is amended to read as follows: "There are authorized to be appropriated to the Department of Commerce to carry out export promotion programs $123,922,000 for the fiscal year 1988, and $146,400,000 for each of the fiscal years 1989 and 1990.". (2) In addition to funds otherwise available, there are authorized to be appropriated to the Department of Commerce to carry out sections 2303 and 2304 of this Act $6,000,000 for each of the fiscal years 1988,1989, and 1990. SEC. 2306. UNITED STATES AND FOREIGN COMMERCIAL SERVICE PACIFIC RIM INITIATIVE. (a) IN GENERAL.—In order to encourage the export of United States goods and services to Japan, South Korea, and Taiwan, the PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1345 United States and Foreign Commercial Service shall make a special effort to— (1) identify United States goods and services which are not being exported to the markets of Japan, South Korea, and Taiwan but which could be exported to these markets under competitive market conditions; (2) identify and notify United States persons who sell or provide such goods or services of potential opportunities identified under paragraph (1); (3) present, periodically, a list of the goods and services identified under paragraph (1), together with a list of any impediments to the export of such goods and services, to appropriate authorities in Japan, South Korea, and Taiwan, with a view toward liberalizing markets to such goods and services; (4) facilitate the entrance into such markets by United States persons identified and notified under paragraph (2); and (5) monitor and evaluate the results of efforts to increase the sale of goods and services in such markets. (b) REPORTS TO THE CONGRESS.—The Secretary of Commerce shall report periodically to the Congress on activities carried out under subsection (a). (c) DEFINITION.—As used in this section, the term "United States person" means— (1) a United States citizen; or (2) a corporation, partnership, or other association created under the laws of the United States or any State (including the District of Columbia or any commonwealth, territory, or possession of the United States). SEC. 2307. INDIAN TRIBES EXPORT PROMOTION. Marketing. (a) ASSISTANCE AUTHORIZED.—The Secretary of Commerce is au- thorized to provide assistance to eligible entities for the development of foreign markets for authentic American Indian arts and crafts. Eligible entities under this section include Indian tribes, tribal organizations, tribal enterprises, craft guilds, marketing cooperatives, and individual Indian-owned businesses. (b) ACTIVITIES EUGIBLE FOR ASSISTANCE.—Activities eligible for assistance under this section include, but are not limited to, conduct of market surveys, development of promotional materials, financing of trade missions, participation in international trade fairs, direct marketing, and other market development activities. (c) ADMINISTRATION OF ASSISTANCE.—Assistance under this section shall be administered by the Secretary of Commerce under guidelines developed by the Secretary. Priority shall be given to projects which support the establishment of long term, stable international markets for American Indian arts and crafts and which are designed to provide the greatest economic benefit to American Indian artisans. (d) TECHNICAL AND OTHER ASSISTANCE.—The Secretary of Commerce shall provide technical assistance and support services to applicants eligible for and entities receiving assistance under this section for the purpose of helping them in identifying and entering appropriate foreign markets, compljdng with foreign and domestic legal and banking requirements regarding the export and import of arts and crafts, and utilizing import and export financial arrangements, and shall provide such other assistance as may be necessary 102 STAT. 1346 PUBLIC LAW 100-418—AUG. 23, 1988 to support the development of export markets for American Indian arts and crafts. (e) LIMITATION ON ASSISTANCE.—No assistance shall be provided under this section in support of any activity which includes the sale or marketing of any craft items other than authentic arts and crafts hand made or hand crafted by American Indian artisans. SEC. 2308. PRINTING AT OVERSEAS LOCATIONS. (a) PRINTING IN CONJUNCTION WITH EXPORT PROMOTION PRO- GRAMS.—Section 201 of the Export Administration Amendments Act of 1985 (15 U.S.C. 4051) is amended by adding at the end the following: "(e) PRINTING OUTSIDE THE UNITED STATES.—(1) Notwithstanding the provisions of section 501 of title 44, United States Code, and consistent with other applicable law, the Secretary of Commerce, in carrying out any export promotion program, may authorize— "(A) the printing, distribution, and sale of documents outside the contiguous United States, if the Secretary finds that the implementation of such export promotion program would be more efficient, and if such documents will be distributed primarily and sold exclusively outside the United States; and "(B) the acceptance of private notices and advertisements in connection with the printing and distribution of such documents. "(2) Any feesj received by the Secretary pursuant to paragraph (1) shall be deposited in a separate account or accounts which may be used to defray directly the costs incurred in conducting activities authorized by paragraph (1) or to repay or make advances to appropriations or other funds available for such activities.". SEC. 2309. LOCAL CURRENCIES UNDER PUBLIC LAW 480. Section 108(i) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1708(i)) is amended— (1) in paragraph (1) by striking "and"; (2) in paragraph (2) by striking the period and inserting "; and"; and (3) by adding at the end the following: "(3) the terms 'private sector development activity' and 'private enterprise investment' include the construction of low- and medium-income housing and shelter.". SEC. 2310. OFFICE OF EXPORT TRADE. Section 104 of the Export Trading Company Act of 1982 (15 U.S.C. 4003) is amended by adding at the end the following: "The office shall establish a program to encourage and assist the operation of other export intermediaries, including existing and newly formed export management companies.". 15 u s e 4011 SEC. 2311. REPORT ON EXPORT TRADING COMPANIES. ^°^- Not later than 18 months after the date of the enactment of this Act, the Secretary of Commerce shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate, and to the Committee on Banking, Finance and Urban Affairs, the Committee on Foreign Affairs, and the (Dommittee on the Judiciary of the House of Representatives, on the activities of the Department of Commerce to promote and encourage the formation of new and the operation of existing and new export promotion intermediaries, PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1347 including export management companies, export trade associations, bank export trading companies, and export trading compeinies. The report shall include a survey of the activities of export management companies, export trade associations, and those bank export trading companies and export trading companies established pursuant to the amendments made by title II of the Export Trading Company Act of 1982, and pursuant to title III of that Act. The report shall not contain any information subject to the protections from disclosure provided in that Act. Subtitle D—Export Controls SEC. 2401. REFERENCE TO THE EXPORT ADMINISTRATION ACT OF 1979. For purposes of this subtitle, the Export Administration Act of 1979 shall be referred to as "the Act". PART I—EXPORT CONTROLS GENERALLY SEC. 2411. EXPORT LICENSE FEES. Section 4 of the Act (50 U.S.C. App. 2403) is amended by adding at the end the following: "(g) FEES.—No fee may be charged in connection with the submission or processing of an export license application.". SEC. 2412. MULTIPLE LICENSE AUTHORITY. People's Section 4(aX2) of the Act (50 U.S.C. App. 2403(aX2)) is amended— Republic (1) in subparagraph (A) by striking the period at the end of of China. the first sentence and inserting ", except that the Secretary may establish a type of distribution license appropriate for consignees in the People's Republic of CJhina."; and (2) in subparagraph (B) in the first sentence by inserting "(except the People's Republic of China)" after "controlled countries". SEC. 2413. DOMESTIC SALES TO COMMERCIAL ENTITIES OF CONTROLLED COUNTRIES. Section 5(aXl) of the Act (50 U.S.C. App. 2404(aXl)) is amended by inserting after the second sentence the following: "For purposes of the pre^ding sentence, the term 'affiliates' includes both governmental entities and commercial entities that are controlled in fact by controlled countries.". SEC. 2414. AUTHORITY FOR REEXPORTS. Science and Section 5(a) of the Act (50 U.S.C. App. 2404(a)) is amended by technology. adding at the end the following: "(4XA) No authority or permission may be required under this section to reexport any goods or technology subject to the jurisdiction of the United States to any country which maintains export controls on such goods or technol(^y cooperatively with the United States pursuant to the agreement of the group known as the Coordinating Committee, or pursuant to an agreement described in subsection Os) of this section. The Secretary may require any person reexjporting any goods or technology under this subparagraph to notify the Secretary of such reexports. "(B) Notwithstanding subparagraph (A), the Secretary may require authority or permission to reexport the following: 102 STAT. 1348 PUBLIC LAW 100-418—AUG. 23, 1988 "(i) supercomputers; "(ii) goods or technology for sensitive nuclear uses (as defined by the Secretary); Communications "(ill) devices for surreptitious interception of wire or oral and communications; and telecommunications. "(iv) goods or technology intended for such end users as the Secretary may specify by r^^ation. "(5XA) Except as provided in subparagraph (B), no authority or permission may be required under this section to reexport any goods or technology subject to the jurisdiction of the United States from any country when the goods or technology to be reexported are incorporated in another good and— "(i) the value of the controlled United States content of that other good is 25 percent or less of the total value of the good; or "(ii) the export of the goods or technology to a controlled country would require only notification of the participating governments of the Ckx)rdinating (Committee. For purposes of this paragraph, the 'controlled United States content' of a good means those goods or technolc^y subject to the jurisdiction of the United States which are incorporated in the good, if the export of those goods or technology from the United States to a country, at the time that the good is exported to that country, would require a validated license. "(B) The Secretary may by rq^ation provide that subparagraph (A) does not apply to the reexport of a supercomputer which contains goods or technology subject to the jurisdiction of the United States. Regulations. "(6) Not later than 90 days after the date of the enactment of this paragraph, the Secretary shall issue r^ulations to carry out paragraphs (4) and (5). Such regulations shall define the term supercomputer' for purposes of those paragraphs.". SEC 241S. EXPORTS TO COUNTRIES. Science and technology. People's Republic of China. COUNTRIES OTHER THAN CONTROLLED (a) OOOOM Ck)UNTRiKS.—Section 5a)X2) of the Act (50 U.S.C. App. 2404(bX2)) is amended to read as follows: "(2XA) Except as provided in subparagraph (B), no authority or permission may be required under this section to export goods or technology to a country which maintains export controls on such goods or technology cooperatively with the United States pursuant to the agreement of the group known as the (Coordinating Committee or pursuant to an agreement described in subsection (k) of this section, if the export of such goods or technology to the People's Republic of China or a controlled country on the date of the enactment of the Export Enhancement Act of 1988 would require only notification of the participating governments of the C!oordinating Committee. "(BXi) The Secretaxy may require a license for the export of goods or tedmology described in subparagraph (A)tosuch end users as the Secretuy may specify by regulation. "(ii) Tne Secretaxy may require any person exporting goods or technology under this paragraph to notify the Secretary of those coports. (Q The Secretary shall, within 3 months after the date of the enactment of the Export Enhancement Act of 1988, determine wldch counbiies referx^d to in subparagraph (A) are implementing PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1349 an effective export control system consistent with principles agreed to in the Coordinating Committee, including the following: "(i) national laws providing appropriate civil and criminal penalties and statutes of limitations sufficient to deter potential violations; "(ii) a program to evaluate export license applications that includes sufficient technical expertise to assess the licensing status of exports and ensure the reliability of end-users; "(iii) an enforcement mechanism that provides authority for trained enforcement officers to investigate and prevent illegal exports; (iv) a system of export control documentation to verify the movement of goods and technology; and "(v) procedures for the coordination and exchange of information concerning violations of the agreement of the Coordinating Committee. The Secretary shall, at least once each year, review the determinations made under the preceding sentence with respect to all countries referred to in subparagraph (A). The Secretary may, as appropriate, add countries to, or remove countries from, the list of countries that are implementing an effective export control system in accordance with this subpcu-agraph. No authority or permission to export may be required for the export of goods or technology to a country on such list.". Law enforcement and crime. Law enforcement and crime. Records. Science and technology. (b) COUNTRIES OTHER THAN C O C O M COUNTRIES.—Section 5(b) of the Act (50 U.S.C. App. 2404(b)) is amended by adding at the end the following: "(3XA) No authority or permission may be required under this Science and section to export to any country, other than a controlled country, technology. any goods or technology if the export of the goods or technology to controlled countries would require only notincation of the participating governments of the Coordinating CJommittee. "(B) The Secretary may require any person exporting any goods or technology under subparagraph (A) to notify the Secretary of those exports. . SEC. 2416. CONTROL LIST. (a) RESOLUTION OF DISPLTES.—Section 5(cX2) of the Act (50 U.S.C. App. 2404(cX2)) is amended by striking the last sentence and inserting the following: "If the Secretary and the Secretary of Defense are unable to concur on such items, as determined by the Secretary, the Secretary of Defense may, within 20 days after receiving notification of the Secretan^'s determination, refer the matter to me President for resolution. The Secretary of Defense shall notify the Secretary of any such referral. The President shall, not later than 20 days after President of such referral, notify the Secretary of his determination with respect U.S. to the inclusion of such items on the list. Failure of the Secretaiy of Defense to notify the President or the Secretary, or failure of the President to notify the Secretary, in accordance with this paragraph, shall be deemed by the Secretary to constitute concurrence in the implementation of the actions proposed by the Secretary regarding the inclusion of such items on tlie list.". (b) CONDUCT OF LIST REVIEWS.— (1) CONTROL UST.—Section 5(cX3) of the Act is amended to read as follows: "(3) The Secretary shall conduct partial reviews of the list established pursuant to this subsection at least once each calendar 102 STAT. 1350 Federal Register, publication. Federal Register, publication. Science and technology. PUBLIC LAW 100-418—AUG. 23, 1988 quarter in order to carry out the policy set forth in section 3(2XA) of this Act and the provisions of this section, and shall promptly make such revisions of the list as may be necessary after each such review. Before beginning each quarterly review, the Secretary shall publish notice of that, review in the Federal Register. The Secretary shall provide a 30-day period during each review for comment and the submission of data, with or without oral presentation, bv interested Grovemment agencies and other affected or potentially affected parties. After consultation with appropriate Grovemment agencies, the Secretary shall make a determination of any revisions in the list within 30 days after the end of the review period. The concurrence or approval of any other department or agency is not required before any such revision is made. The Secretary shall publish in the Federal Register any revisions in the list, with an explanation of the reasons for the revisions. The Secretary shall use the data developed from each review in formulating United States proposals relating to multilater£d export controls in the group known as the Coordinating Committee. The Secretary shall further assess, as part of each review, the availability from sources outside the United States of goods and technology comparable to those subject to export controls imposed under this section. All goods and technology on the list shall be reviewed at least once each year. The provisions of this paragraph apply to revisions of the list which consist of removing items from the list or making changes in cat^ories of, or other specifications in, items on the list.". (2) LIST OF MIUTARILY CRITICAL TECHNOLOGIES.—Section 5(dX5) of the Act (50 U.S.C. App. 2404(dX5)) is amended in the first sentence by striking "at least annually" and inserting "on an ongoing basis". (3) TECHNICAL ADVISORY COMMITTEES.—(A) Section 5(c) of the Act is amended by adding at the end the following: "(4) The appropriate technical advisory committee appointed under subsection (h) of this section shall be consulted by the Secretaiy with respect to changes, pursuant to paragraph (2) or (3), in the list established pursuant to this subsection, and such technical advisory committee may submit recommendations to the Secretary with respect to such changes. The Secretary shall consider the recommendations of the technical advisory committee and shall inform the committee of the disposition of its recommendations.". (c) CONTROL LIST REDUCTION.— Science and technology. Reports. (1) IN GENERAL.—Section 5(c) of the Act (50 U.S.C. App. 2404(c)) (as amended by subsection (bX3) of this section) is further amended by adding at the end tiie following: "(5XA) Not later than 6 months after the date of the enactment of this paragraph, the following shall no longer be subject to export controls under this section: "(i) All goods or technology the export of which to controlled countries on the date of the enactment of the Export Enhancement Act of 1988 would require only notification of the participating governments of the Coordinating Committee, except for those goods or technology on which the Coordinating Committee agrees to maintcdn such notification requirement. "(ii) All medical instruments and equipment, subject to the provisions of subsection (m) of this section. "(6) The Secretary shall submit to the Congress annually a report setting forth the goods and tecYinology from which export controls have been removM under this paragraph.". PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1351 (2) ELIMINATION OF UNILATERAL CONTROLS.—Section 5(c) of the Act (as a m e n d e by subsection (bX3) and paragraph (1) of this subsection) is further amended by addmg at the end the following: "(6XA) Notwithstanding subsection (0 or (hX6) of this section, any export control imposed under this section which is maintained unilaterally by the United States shall expire 6 months after the date of the enactment of this paragraph, or 6 months after the export control is imposed, whichever date is later, except that— "(i) any such export controls on those goods or technology for which a determination of the Secretary that there is no foreign availability has been made under subsection (f) or (hX6) of thus section before the end of the applicable 6-month period and is in effect may be renewed for periods of not more than 6 months each, and "(ii) any such export controls on those goods or technology with respect to which the President, by the end of the applicable 6-month period, is actively pursuing n^otiations with other countries to achieve multilateral export controls on those goods or technology may be renewed for 2 periods of not more than 6 months each. "(B) EbEport controls on goods or technolt^y described in clause (i) or (ii) of subparagraph (A) may be renewed only if, before each renewal, the President submits to the (Congress a report setting forth all the controls being renewed and stating the specific reasons for such renewal.". Science and technology. President of U.S. Reports. (3) REVIEW OF CERTAIN LOW TECHNOLOGY ITEMS.—Section 5(c) of the Act (as amended by subsection (bX3) and paragraphs (1) and (2) of this subsection) is further amended by adding at the end the following: "(7) Notwithstanding any other provision of this subsection, after 1 year has elapsed since the last review in the Federal Register on any item withm a cat^ory on the control list the export of which to the People's Republic of (]!hina would require only notification of the members of the group known as the (joordinating C>>mmittee, an export license applicant may file an all^ation with the Secretary that such item has not been so reviewed within such 1-year period. Within 90 days after receipt of such all^ation, the Secretary— "(A) shall determine the truth of the cdl^ation; "(B) shall, if the allegation is confirmed, commence and complete the review of the item; and "(C) shall, pursuant to such review, submit a finding for publication in the Federal Roister. In such finding, the Secretary shall identify those goods or technology which shall remain on the control list and those goods or technology which shall be removed from the control list. If such review and submission for publication are not completed within that 90-day period, the goods or technology encompa^ed by such item shall immediately be removed from the control list.". "Federal Register, publication. Science and technology. SEC. 2417. TRADE SHOWS. Section 5(e) of the Act (50 U.S.C. App. 2404(e)) is amended by adding at the end the following: "(6) Any application for a license for the export to the People's People's Republic of Quna of any good on which export controls are in effect Republic under this section, without r^ard to the technical specifications of °^ Chma. 102 STAT. 1352 PUBLIC LAW 100-418—AUG. 23, 1988 the good, for the purpose of demonstration or exhibition at a trade show shall carry a presumption of approval if— "(A) the United States exporter retains title to the good during the entire period in which the good is in the People's Republic of China; and * (B) the exporter removes the good from the People's Republic of China no later than at the conclusion of the trade show.". Science and technology. Defense and national security. Regulations. SEC. 2418. FOREIGN AVAILABILITY.— (a) IN GENERAL.—Section 5(f) of the Act (50 U.S.C. App. 2404(D) is amended to read as follows: "(f) FOREIGN AVAILABILITY.— "(1) FOREIGN AVAILABILITY TO CONTROLLED COUNTRIES.—(A) The Secretary, in consultation with the Secretary of Defense and other appropriate Government agencies and with appropriate technical advisory committees established pursuant to subsection (h) of this section, shall review, on a continuing basis, the availability to controlled countries, from sources outside the United States, including countries which participate with the United States in multilateral export controls, of cuiy goods or technology the export of which requires a validated license under this section. In any case in which the Secretary determines, in accordance with procedures and criteria which the Secretary shall by r^^ation establish, that any such goods or technology are available in fact to controlled countries from such sources in sufficient quantity and of comparable quality so that the requirement of a validated license for the export of such goods or technology is or would be ineffective in achieving the purpose set forth in subsection (a) of this section, the Secretaiy may not, after the determination is made, require a validated license for the export of such goods or technology during the period of such foreign availability, unless the President determines that the alienee of export controls under this section on the goods or technology would prove detrimental to the national security of the United States. In any case in which the President determines under this paragraph that export controls imder this section must be maintained notwithstanding foreign availability, the Secretary shall publish that determination, together with a concise statement of its basis and the estimated economic impact of the decision. "(B) The Secretary shall approve any application for a validated license which is required under this section for the export of any goods or technology to a controlled country and which meets all other requirements for such an application, if the Secretaiy determines that such goods or technology will, if the license is denied, be available in fact to such country from sources outside the United States, including countries which participate with the United States in multilateral export controls, in sufficient quantity and of comparable quality so that denial of the license would be ineffective in achieving the purpose set forth in subsection (a) of this section, unless the President determines that approving the license application would prove detrimental to the national security of the United States. In any case in which the Secretary makes a determination of foreign availability under this subparagraph with respect to any goods or technology, the Secretary shall determine PUBLIC LAW 100-418—AUG. 23,1988 102 STAT. 1353 whether a determination of foreign availability under subparagraph (A) with respect to such goods or technology is warranted. "(2) FORSIGN AVAILABILITy TO OTHER THAN CONTROIXED COUNTRIES.—<A) The Secretary shall review, on a continuing basis, the availability to countries other than controlled countries, from sources outside the United States, of any goods or technology the export of which requires a validated license under this section. If the Secretary determines, in accordance with procedures which the Secretary shall establish, that any goods or technology in sufficient quantity and of comparable quality are available in fact from sources outside the United Statcas (other than availability under license from a country which maint4iins export controls on such goods or technology cooperatively with the United States pursuant to the agreement of the group known as the Coordinating Committee or pursuant to an agreement described in subsection (k) of this section), the Secretary may not, after the determination is made and during the period of such foreign availability, require a validated license for the export of such goods or tecimology to any country (other than a controlled country) to which the country from which the goods or technology is available does not place controls on the export of such goods or technology. The requirement with respect to a validated license in the preceding sentence shall not apply if the President determines that the absence of export controls under this section on the goods or technologv would rove detrimental to the national securibr of the United States, n any case in which the President aetermines under this paragraph that export controls under this section must be maintained notwithstandmg foreign availability, the Secretary shall publish that determination, together with a concise statement of its basds and the estimated econmnic impact of the decision. "(B) Hie Secretary shall approve any application for a validated license which is required under this section for the export of any goods or technoloeir to a country (other than a controlled country) and which meets all other requirements for such an application, if the Secretary determines that such goods or technology are available from foreign sources to Uiat country under the criteria established in subparagraph (A), unless the President determines that approving the license application would prove detrimental to the national security of the United States. In any case in which the Secretary makes a determination of foreign availability under this subparagraph with respect to any goods or technology, the Secretary shall determine whether a determination of foreign avaUabUity under subparagraph (A) with respect to such goods or technology is warranted. "(3) PROCEDURES FOR MAKING DEnERinNAnoNS.—<A) The Secretary shall make a foreign availability determination under paragraph (1) or (2) on the Secretary's own initiative or upon receipt of an allegation from an export license aj^licant mat such availability exists. In making an^ such determination, the Secretary shall accept the representations of applicants made in writing and supported by reasonable evidence, unless such representations are contradicted l ^ reliable evidence, including scientific or physical examination, expert opinion based upon adec^te factual information, or intelligence information. In making determinations of foreign avulability, the Secretary E 102 STAT. 1354 Federal Register, publication. Federal Register, publication. President of U.S. PUBLIC LAW 100-418—AUG. 23, 1988 may consider such factors as cost, reliability, the availability and reliability of spare parts and the cost and quality thereof, maintenance programs, durability, quality of end products produced by the item proposed for export, and scale of production. For purposes of this subparagraph, 'evidence' may include such items as foreign manufacturers catalogues, brochures, or operations or maintenance manuals, articles from reputable trade publications, photographs, and depositions based up)on eyewitness accounts. "(B) In a case in which an allegation is received from an export license applicant, the Secretary shall, upon receipt of the allegation, submit for publication in the Federal Register notice 6f such receipt. Within 4 months after receipt of the allegation, the Secretary shall determine whether the foreign availability exists, and shall so notify the applicant. If the Secretary has determined that the foreign availability exists, the Secretary shall, upon making such determination, submit the determination for review to other departments and agencies as the Secretary considers appropriate. The Secretary^ determination of foreign availability does not require the concurrence or approval of any official, department, or agency to which such a determination is submitted. Not later than 1 month after the Secretary makes the determination, the Secretary shall respond in writing to the applicant and submit for publication in the Federal Register, that— "(i) the foreign availability does exist and— "(I) the requirement of a validated license has been removed, "(II) the President has determined that export controls under this section must be maintained notwithstanding the foreign availability and the applicable steps are being taken under paragraph (4), or (III) in the case of a foreign availability determination under paragraph (1), the foreign availability determination will be submitted to a multilateral review process in accordance with the agreement of the Coordinating Committee for a period of not more than 4 months beginning on the date of the publication; or "(ii) the foreign availability does not exist. In any case in which the submission for publication is not made within the time period specified in the preceding sentence, the Secretary may not thereafter require a license for the export of the goods or technology with respect to which the foreign avEulability allegation was made. In the case of a foreign availability determination under paragraph (1) to which clause (iXHD applies, no license for such export may be reauired after the end of the 9-month period b^inning on the date on which the allegation is received. "(4) NEGOTIATIONS TO ELIMINATE FOREIGN AVAILABILITY.—(A) In any case in which export controls are maintained under this section notwithstanding foreign availability, on account of a determination by the {^resident that the absence of the controls would prove detrimental to the national security of the United StatM, the President shall actively pursue n^otiations with the governments of the appropriate foreign countries for the purpose of eliminating such availability. No later than the commencement of such n^otiations, the President shall notify PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1355 in writing the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Foreign Affairs of the House of Representatives that he has begun such negotiations and why he beUeves it is important to national security that export controls on the goods or technology involved be maintained. "(B) If, within 6 months after the President's determination that export controls be maintained, the foreign availability has not been eliminated, the Secretarv may not, after the end of that 6-month period, require a validated license for the export of the goods or technol(^ involved. The President may extend the 6Hmonth period described in the preceding sentence for an additional period of 12 months if the President certifies to the Congress that the negotiations involved are progressing and that the absence of the export controls involved would prove detrimental to the national security of the United States. Whenever the President has reason to believe that goods or technology subject to export controls for national security purposes by the United States may become available from other countries to controlled countries and that such availability can be prevented or eliminated by means of n^otiations with such other countries, the President shall promptly initiate negotiations with the governments of such other countries to prevent such foreign availability. "(C) After an agreement is reached with a country pursuant to n^otiations under this paragraph to eliminate or prevent foreign availability of goods or technolc^, the Secretary may not require a validated license for the export of such goods or technology to that coimtry. President of U.S. "(5) EXPEDITED UCENSES FOR ITEBIS AVAILABLE TO COUNTRIES OTHER THAN OONTROU.ED COUNTRIES.—(A) In any case in which the Secretary finds that any goods or technology from foreign sources is of similar quality to goods or technology the export of which requires a validated license under this section and is available to a country other than a controlled country without effective restrictions, the Secretary shall designate such goods or technology as eligible for export to such country under this paragraph. "(B) In the case of goods or technol(^y designated under subparagraph (A), then 20 working days after the date of formal filing with the Secretary of an individual validated license application for the export of tiiose goods or technoloe^ to an eligible country, a license for the transaction specified in the application shall become valid and effective and the goods or technology are authorized for export pursuant to such license unless the license has been denied by the Secretary on account of an inappropriate end user. The Secretary may extend the 20day period provided in the preceding sentence for an additional period of lo days if the Secretary requires additional time to consider the application and so notifies the applicant. "(C) The Secretary may make a foreign availability determination under subparagraph (A) on the Secretary's own initiative, upon receipt of an all^ation from an export license applicant that such availability exists, or upon the submission of a certification by a technical advisory committee of appropriate jurisdiction that such availability exists. Upon receipt of Federal such an allegation or certification, the Secretary shall publish Register, publicatioiv 102 STAT. 1356 Establishment. Contracts. PUBLIC LAW 100-418—AUG. 23, 1988 notice of such allegation or certification in the Federal Register and shall make the foreign availability determination within 30 days after such receipt and publish the determination in the Federal Register. In the case of the failure of the Secretary to make and publish such determination within that 30^ay period, the goods or technology involved shall be deemed to be designated as eligible for export to the country or countries involved, for purposes of subparagraph (B). "(D) The provisions of paragraphs (1), (2), (3), and (4) do not apply with respect to determinations of foreign availability under this paragraph. "(6) OFFICE OF FOREIGN AVAILABILITY.—The Secretary shall establish in the Department of Commerce an Office of Foreign Av£dlability, which shall be under the direction of the Under Secretary of Commerce for Export Administration. The Office shall be responsible for gathering and analyzing all the necessary information in order for the Secretary to make determinations of foreign availability under this Act. The Secretary shall make available to the Committee on Foreign Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate at the end of each &-month period during a fiscal year information on the operations of the Office, and on improvements in the Government's ability to assess foreign availability, during that 6-month period, including information on the training of personnel, the use of computers, and the use of Commercial Service Officers of the United States and Foreign Commercial Service. Such information shall also include a description of repli;esentative determinations made under this Act during that 6-inonth period that foreign availability did or did not exist (as the C€ise may be), together with an explanation of such determinations. "(7) SHARING OF INFORMATION.—Each department or agency of the United States, including any intelligence agency, and all contractors with any such department or agency, shall, upon the request of the Secretary and consistent with the protection of intelligence sources and methods, furnish information to the Office of Foreign Availability concerning foreign availability of goods and technolc^ subject to export controls under this Act. Each such department or agency shall allow the Office of Foreign Availability access to any information from a laboratory or other facility within such department or agency. (8) REMOVAL OF CONTROLS ON LESS SOPHISTICATED GOODS OR TECHNOLOGY.—In any C£ise in which Secretary may not, pursuant to paragraph (1), (2), (3), or (4) of this subsection or paragraph (6) of subsection (h) of this section, require a validated license for the export of goods or technology, then the Secretary may not require a validated license for the export of any similar goods or technology whose function, technological approach, performance thresholds, and other attributes that form the basis for export controls under this section do not exceed the technical parameters of the goods or technolc^ry from which the validated license requirement is removed under the applicable paragraph. Federal Register, publication. "(9) NOTICE OF ALL FOREIGN AVAILABILITY ASSESSMENTS.— Whenever the Secretary undertakes a foreign availability assessment under this subsection or subsection (hX6), the Sec- PUBLIC LAW 100-418—AUG. 23,1988 102 STAT. 1357 retary shall publish notice of such assessment in the Federal Renter. (10) AVAILABILITY DEFINED.—For purposes of this subsection and subsections (f) and (h), the term 'available in fact to controlled countries' includes production or availability of any goods or technology in any country— "(A) from which the goods or technology is not restricted for export to any controlled country; or "(B) in which such export restrictions are determined by the Secretary to be inefTective. For purposes of subparagraph (B), the mere inclusion of goods or technology on a list of goods or technology subject to bilateral or multilateral national securitv export controls shall not alone constitute credible evidence tnat a country provides an effective means of controlling the export of such goods or technology to controlled countries?'. (b) TECHNICAL ADVISORY COMMITTEE DETERMINATIONS.—Section 5(hX6) of the Act (50 U.S.C. App. 2404(hX6)) is amended by adding at the end the following: "After an agreement is reached with a country pursuant to n^otiations under this paragraph to eliminate forei|^ availability of goods or technology, the Secretary may not require a validated license for the export of such goods or technolc^ to that country.". (c) TECHNICAL AMENDMENT.—Section 14(aX8) of the Act (50 U.S.C. 50 u s e app. 2413(aX8)) is amended by striking "5(£X5)" and inserting "5(fX6)". 2413. SEC. 2419. REVIEW OF TECHNOLOGY LEVELS. Section 5(g) of the Act (50 U.S.C. 2404te)) is amended— (1) by inserting "(1)" immediately before the first sentence; and (2) by adding at the end the following: "(2XA) In carrying out this subsection, the Secretary shall conduct annual reviews of uie performance levels of goods or technology— "(i) which are eligible for export under a distribution license, "(ii) below which exports to the People's Republic of China require only notification of the governments participating in the fTTOup known as the Coordinating Committee, and "(lii) below which no authority or permission to export may be required under subsection (bX2) or (DXS) of this section. The Secretary shall make appropriate adjustments to such performance levels based on these reviews. "(B) In any case in which the Secretary receives a request which— "(i) is to revise the qualification requirements or minimum thresholds of any goods eligible for export under a distribution license, and "(ii) is made by an exporter of such goods, representatives of an industry which produces such goods, or a technical advisory committee established under subsection (h) of this section, the Secretary, after consulting with other appropriate Government agenci«i and technical advisory committees established under subsection (h) of this section, shall determine whether to make such revision, or some other appropriate revision, in such qualification requirements or minimum thresholds. In making this determination, the Secretary shall take into accoimt the availability of the goods from sources outside the United States. The Secretary shall make a determination on a request made under this subparagraph within 90 days after the date on which the request is filed. If the 50 u s e app. 2404. People's Republic of China. Federal Register, publication. 102 STAT. 1358 PUBLIC LAW 100-418—AUG. 23, 1988 Secretary's determination pursuant to such a request is to make a revision, such revision shall be implemented within 120 days after the date on which the request is filed and shall be published in the Federal Register.". SEC. 2420. FUNCTIONS OF TECHNICAL ADVISORY COMMITTEES. (a) CONSULTATION ON REVISIONS OF CONTROL LIST AND ON REGULA50 u s e app. 2404. TIONS.—Section 5(hX2) of the Act (50 U.S.C. 2404(hX2)) is amended— (1) by redesignating clause (E) as clause (F); and (2) by striking clause (D) and inserting the following: "(D) revisions of the control list (as provided in subsection (cX4)), including proposed revisions of multilateral controls in which the United States participates, (E) the issuance of r^ulations, and". (b) REVIEW OP REGULATIONS.—Section 15(b) of the Act (50 U.S.C. App. 2414(b)) is amended in the third sentence— (1) by striking "and such other" and inserting "such other"; and (2) by inserting after "appropriate" the following: ", and the appropriate technical advisory committee". SEC. 2421. NEGOTIATIONS WITH COCOM. (a) NEGOTIATING OBJECTIVES.—Section 5(i) of the Act (50 U.S.C. App. 2404(i)) is amended by striking "llie President" and inserting "Recc^nizing the ineffectiveness of unilateral controls and the importance of uniform enforcement measures to the effectiveness of multilateral controls, the President". (b) INDUSTRY REPRESENTATIVE TO CCXX)M.—Section 5(i) of the Act is amended by adding at the end the following: "For purposes of reviews of the International Control List, the President may include as advisors to the United States del^ation to the (Committee representatives of industry who are knowledgeable with respect to the items being reviewed.". SEC. 2422. GOODS CONTAINING MICROPROCESSORS OR CERTAIN OTHER PARTS OR COMPONENTS. 50 u s e app. 2404. Section 5(m) of the Act (50 U.S.C. 2404(m)) is amended to read as follows: "(m) GOODS CONTAINING CONTROLLED PARTS AND COMPONENTS.— Defense and national security. Export controls mav not be imposed under this section, or under ftny other provision of law, on a good solely on the basis that the good contains parts or components subject to export controls under this section if such parts or components— "(1) are essential to the functioning of the good, "(2) are customarily included in sales of the good in countries other than controlled countries, and "(3) comprise 25 percent or less of the total value of the ^ood, unless the good itself, if exported, would bv virtue of the functional characteristics of the good as a whole make a significant contribution to the militcuy potential of a controlled countir which would prove detrimental to the national security of the United States.". SEC. 2423. FOREIGN POLICY CONTROLS. 50 u s e app. 2405. (a) DiPLOBfATic ALTBRNATTVES.—Section 6(a) of the Act (50 U.S.C. 2405(a)) is amended by adding at the end the following: "(6) Before imposing, expanding, or extending export controls under this section on exports to a country which can use goods. 102 STAT. 1359 PUBLIC LAW 100-418—AUG. 23,1988 technology, or information available from foreign sources and so incur little or no economic costs as a result of the controls, the President should, through diplomatic means, employ alternatives to export controls which offer opportunities of distinguishing the United States from, and expressing the displeasure of the United States with, the specific actions of that couhtiy in response to which the controls are proposed. Such alternatives include private discussions with foreign leaders, public statements in situations where private diplomacy is unavailable or not effective, withdrawal of ambassadors, and reduction of the size of the diplomatic staff that the country involved is permitted to have in the United States.". (b) SPARE PARTS.—Section 6 of the Act (50 U.S.C. App. 2405) is amended by adding at the end the following: "(p) SPARE PARTS.—(1) At the same time as the President imposes President of or expands export controls under this section, the President shall U.S. determine whether such export controls will apply to replacement parts for parts in goods subject to such export controls. "(2) With respect to export controls imposed under this section before the date of the enactment of this subsection, an individual validated export license shall not be required for replacement parts which are exported to replace on a one-for-one basis parts that were in a good that was lawfully exported from the United States, unless the President determines that such a license should be required for such parts.". SEC. 2424. EXPORTS OF DOMESTICALLY PRODUCED CRUDE OIL. (a) TECHNICAL AMENDMENT.—Section 7(d) of the Act (50 App. 2406(d)) is amended by striking paragraph (4). U.S.C. (b) CRUDE OIL STUDY.— (1) REVIEW OF EXPORT RESTRICTIONS ON CRUDE OIL.—The Secretary of Commerce, in consultation with the Secretary of Energy, shall undertake a comprehensive review to assess whether existing statutory restrictions on the export of crude oil produced in the contiguous United States are adequate to rotect the energy and national security interests of the United tates and American consumers. Takiiig into account exports licensed since 1983 and potential exports of heavy crude oil produced in California, u e review shall assess the efif(Kt of increased exports of crude oil produced in the contiguous United States on— (A) the adequacy of domestic supplies of crude oil and refined petroleum products in meeting United States energy and national security needs; (B) the quantity, quality, and retail price of petroleum products available to consumers in the United States generally and on the West Coast in particular; (C) the overall trade deficit of the United States; (D) acquisition costs of crude oil by domestic petroleum refiners; (E) thefinancialviability of sectors of the domestic petroleum industry (including independent refiners, distributors, marketers, and pipeline carriers); and (F) the United States tanker fleet (and the industries that support it), with particular emphasis on the availability of militarily useful tankers to meet anticipated national defense requirements. S 50 u s e app. 2406 note. California, Defense and national security. 102 STAT. 1360 Defense and national security. PUBLIC LAW 100-418—AUG. 23, 1988 (2) PuBUC HEARING AND COMMENT.—The Secretary of Commerce shall provide notice and a reasonable opportunity for public hearing and comment on the review conducted pursuant to this subsection. (3) CONSULTATIONS WITH OTHER AGENCIES.—The Secretary of Commerce shall consult with the Secretary of Defense, the Secretary of the Interior, and the Secretary of Transportation, in addition to the Secretary of Energy, in undertaking the review pursuant to this subsection. (4) FINDINGS, OPTIONS, AND RECOMMENDATIONS.—After taking public comment and consulting with appropriate State and Federal officials, the Secretary of Commerce, in consultation with the Secretary of Energy, shall develop findings, options, and recommendations regarding the adequacy of existing statutory restrictions on the export of crude oil produced in the contiguous United States in protecting the energy and national security interests of the United States and American consumers. (5) CONSULTATIONS AND REPORT.—In carrying out this subsection, the Secretary of Commerce shall consult with the Committee on Foreign Affairs and the Committee on Energy and Commerce of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs, the Committee on Commerce, Science, and Transportation, and the Committee on Energy and Natural Resources of the Senate. Not later than 12 months after the date of the enactmeilt of this Act, the Secretary shall tr£insmit to each of those committees a report which contains the results of the review undertaken pursuant to this subsection and the findings, options, and recommendations developed under paragraph (4). SEC. 2425. PROCEDURES FOR LICENSE APPLICATIONS. (a) REVIEW OF LICENSE APPUCATIONS BY THE SECRETARY OF DEFENSE.—Section 10(g) of the Act (50 U.S.C. App. 2409(g)) is amended— (1) in paragraph (2XA) by inserting "and the Secretary" after "to the President"; (2) by inserting before the last sentence of paragraph (2) the following: "Whenever the Secretary of Defense makes a recommendation to the President pursuant to paragraph (2XA), the Secretary shall also submit his recommendation to the President on the request to export if the Secretary differs with the Secretary of Defense."; (3) by adding at the end of paragraph (2) the following: "If the Secretary of Defense fails to make a recommendation or notification under this paragraph within the 20-day period specified in the third sentence, or if the President, within 20 days after receiving a recommendation from the Secretary of Defense with respect to an export, fails to notify the Secretary that he approves or disapproves the export, the Secretary shall approve or deny the request for a license or other authority to export without such recommendation or notification."; and (4) by strikiiig paragraph (4). (b) REPORT BY SECRETARIES OF COMMERCE AND DEFENSE.—The Secretary of Commerce and the Secretary of Defense shall each evaluate and, not later than 4 months after the date of the enactment of this Act, shall jointly prepare and submit a report to the PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1361 Committee on Foreign Affairs o^ the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on the review by the Department of Defense for national security purposes as provided in the Export Administration Act of 1979, of export license applications for exports to countries other than controlled countries under section 5(bXl) of that Act (c) REPORT ON SMALL BUSINESSES.—Section 10(m) of the Act (50 U.S.C. App. 2409(m)) is amended by adding at the end the following: "The Secretary shall, not later than 120 days after the date of the enactment of the Export Enhancement Act of 1988, report to the Congress on steps taken to implement the plan developed under this subsection to assist small businesses in the export licensing application process.". SEC. 2426. VIOLATIONS. Section 11(h) of the Act (50 U.S.C. App. 2410(h)) is amended— (1) in the first sentence— (A) by inserting "(1)" before "No"; and (B) by inserting after "violation o f the following: "this Act (or any regulation, license, or order issued under this Act), any regulation, license, or order issued under the International Emergency Economic Powers Act,"; and (2) by adding at the end the following: "(2) The Secretary may exercise the authority under paragraph (1) with respect to any person related, through affiliation, ownership, control, or position of responsibility, to any person convicted of any violation of law set forth in paragraph (1), upon a showing of such relationship with the convicted party, and subject to the procedures set forth in section 13(c) of this Act.". SEC. 2427. ENFORCEMENT. Section 12(aX2XB) of the Act (50 U.S.C. App. 2411(aX2XB)) is amended by adding at the end the following: "Tlie Customs Service Science and may not detain for more than 20 days any shipment of goods or technology. technology eligible for export under a general license under section 4(aX3). In a case in which such detention is on account of a disagreement between the Secretary and the head of any other department or agency with export license authority under other provisions of law concerning the export license requirements for such goods or technology, such disagreement shall be resolved within that 20-day period. At the end of that 20-day period, the Customs Service shall either release the goods or technology, or seize the goods or technology as authorized by other provisions of law.". SEC. 2428. ADMINISTRATIVE PROCEDURE AND JUDICIAL REVIEW. Courts, U.S. (a) JUDICIAL REVIEW.—(1) Section 13(c) of the Act (50 U.S.C. App. 2412(c)) is amended— (A) in the last sentence of paragraph (1) by inserting before the period ", except as provided in paragraph (3)"; (B) by redesignating paragraph (3) as paragraph (4); and (C) by inserting after paragraph (2) the following: "(3) The order of the Secretary under paragraph (1) shall be final except that the charged party may, within 15 days after the order is issued, appeal the order in the United States Court of Appeals for the District of Columbia Circuit, which shall have jurisdiction of the appeal. The court may, while the appeal is pending, stay the order of the Secretary. The court may review only those issues necessary to Law enforcement and 102 STAT. 1362 Records. Records. PUBLIC LAW 100-418—AUG. 23, 1988 determine liability for the civil penalty or other sanction involved. In an appeal filed under this paragraph, the court shall set aside any finding of fact for which the court finds there is not substantial evidence on the record and any conclusion of law which the court finds to be arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.". (2) Section 13(d) of the Act (50 U.S.C. App. 2412(d)) is amended— (A) in the fifth sentence of paragraph (2) by inserting before the period ", except as provided in paragraph (3)"; and (B) by adding at the end of paragraph (2) the following: "All materials submitted to the administrative law judge and the Secretary shall constitute the administrative record for purposes of review by the courts. "(3) An order of the Secretary affirming, in whole or in part, the issuance of a temporary denial order may, within 15 days after the order is issued, be appealed by a person subject to the order to the United States Court of Appeals for the District of Columbia Circuit, which shall have jurisdiction of the appeal. The court may review only those issues necessary to determine whether the standard for issuing the temporary denial order has been met. The court shall vacate the Secretary's order if the court finds that the Secretary's order is arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.". (b) ISSUANCE OF TEMPORARY DENIAL ORDERS.—Section 13(d)(1) of the Act (50 U.S.C. App. 2412(d)(1)) is amended in the second sentence by striking "60" each place it appears and inserting "180". SEC. 2429. RESPONSIBILITIES OF THE UNDER SECRETARY OF COMMERCE FOR EXPORT ADMINISTRATION. Defense and national security. Section 15(a) of the Act (50 U.S.C. App. 2414(a)) is amended by inserting "and such other statutes that relate to national security" after "functions of the Secretary under this Act". SEC. 2430. AUTHORIZATION OF APPROPRIATIONS. Section 18(b) of the Act (50 U.S.C. App. 2417(b)) is amended— (1) in paragraph (1)— (A) by striking "each of the fiscal years 1987 and 1988" and inserting "the fiscal year 1988": (B) by striking "for each such year" each place it appears, and (C) by striking "and" after the semicolon; and (2) by striking paragraph (2) and inserting the following: "(2) $46,913,000 for the fiscal year 1989, of which $15,000,000 shall be available only for enforcement, $5,000,000 shall be available only for foreign availability assessments under subsections (f) and (h)(6) of section 5, $4,000,000 shall be available only for regional export control assistance centers, and $22,913,000 shall be available for all other activities under this Act; and "(3) such additional amounts for each of the fiscal years 1988 and 1989 as may be necessary for increases in salary, pay, retirement, other employee benefits authorized by law, and other nondiscretionary costs.". SEC. 2431. TERMINATION DATE. 50 u s e app. 2419. Section 20 of the Act (50 U.S.C. 2419) is amended by striking "1989" and inserting "1990". PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1363 SEC. 2432. MONITORING OF WOOD EXPORTS. 50 USC app. The Secretary of Commerce shall, for a period of 2 years beginmng on the date of the enactment of this Act, monitor exports of processed and unprocessed wood to all countries of the Pacific Rim. The Secretary shall include the results of such monitoring in monthly reports setting forth, with respect to each item monitored, actual exports, the destination by country, and the domestic and worldwide price, supply, and demand. The Secretary shall transmit Reports. such reports to the Committee on Foreign Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate. SEC. 2433. STUDY ON NATIONAL SECURITY EXPORT CONTROLS. (a) ARRANGEMENTS FOR AND CONTENTS OF STUDY.— (1) ARRANGEMENTS FOR CONDUCTING STUDY.—The Secretary of Commerce and the Secretary of Defense, not later than 60 days after the date of the enactment of this Act, shall enter into appropriate arrangements with the National Academy of Sciences and the National Academy of Engineering (hereafter in this section referred to as the "Academies") to conduct a comprehensive study of the adequacy of the current export administration system in safeguarding United States national security while maintaining United States international competitiveness and Western technological preeminence. (2) REQUIREMENTS OF STUDY.—Recognizing the need to minimize the disruption of United States trading interests while preventing Western technology from enhancing the development of the military capabilities of controlled countries, the study shall— (A) identify those goods and technologies which are likely to make crucial differences in the military capabilities of controlled countries, and identify which of those goods and technologies controlled countries already possess or are available to controlled countries from other sources; (B) develop implementable criteria by which to define those goods and technolc^es; (C) demonstrate how such criteria would be applied to the control list by the relevant agencies to revise the list, eliminate ineffective controls, and strengthen controls; (D) develop proposals to improve United States and multilateral assessments of foreign availability of goods and technolc^y subject to export controls; and (E) develop propc^als to improve the administration of the export control program, including procedures to ensure timely, predictable, and effective decision-making. (b) ADVISORY PANEL.—In conducting the study under subsection (a), the Academies shall appoint an Advisory Panel of not more than 24 members who shall be selected from among individuals in private life who, by virtue of their experience and expertise, are knowledgeable in relevant scientific, business, legal, or administrative matters. No individual may be selected as a member who, at the time of his or her appointment, is an elected or appointed official or employee in the executive, l^islative, or judicial branch of the (Jovemment In selecting members of the Advisory Panel, the Academies shall seek suggestions from the President, the Congress, and representatives of industry and the academic community. 50 USC app. 102 STAT. 1364 Classified information. Multilateral Export Control Enhancement Amendments Act. 50 u s e app. 2401 note. 50 u s e app. 2410a note. PUBLIC LAW 100-418—AUG. 23, 1988 (c) EXECUTIVE BRANCH COOPERATION.—The Secretary of Commerce, the Secretary of Defense, the Secretary of State, the Director of the Central Intelligence Agency, and the head of any department or agency that exercises authority in export administration— (1) shall furnish to the Academies, upon request and under appropriate safeguards, classified or unclassified information which the Academies determine to be necessary for the purposes of conducting the study required by this section; and (2) shall work with the Academies on such problems related to the study as the Academies consider necessary. (d) REPORT.—Under the direction of the Advisory Panel, the Academies shall prepare and submit to the President and the Congress, not later than 18 months after entering into the arrangements referred to in subsection (a), a report which contains a detailed statement of the findings and conclusions of the Academies pursuant to the study conducted under subsection (a), together with their recommendations for such legislative or regulatory reforms £is they consider appropriate. (e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated $900,000 to carry out this section. PART II—MULTILATERAL EXPORT CONTROL ENHANCEMENT SEC. 2441. SHORT TITLE. This part may be cited as the "Multilateral Export Control Enhancement Amendments Act". SEC. 2442. FINDINGS. The Congress makes the following findings: (1) The diversion of advanced milling machinery to the Soviet Union by the Toshiba Machine Company and Kongsberg Trading Company has had a serious impact on United States and Western security interests. (2) United States and Western security is undermined without the cooperation of the governments and nationals of all countries participating in the group known as the Coordinating Committee (heresrfter in this part referred to as "COCOM") in enforcing the COCOM agreement. (3) It is the responsibility of all governments participating in COCOM to place in effect strong national security export control laws, to license strategic exports carefully, and to enforce those export control laws strictly, since the COCOM system is only as strong as the national laws and enforcement on which it is based. (4) It is also important for corporations to implement effective internal control systems to ensure compliance with export control laws. (5) In order to protect United States national security, the United States must take steps to ensure the compliance of foreign companies with COCOM controls, including, where necessary conditions have been met, the imposition of sanctions against violators of controls commensurate with the severity of the violation. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1365 SEC. 2443. MANDATORY SANCTIONS AGAINST TOSHIBA AND KONGSBERG. (a) SANCTIONS AGAINST TOSHIBA MACHINE COMPANY, KONGSBERG TRADING COMPANY, AND CERTAIN OTHER FOREIGN PERSONS,—(1) The President shall impose, for a period of 3 years— (1) a prohibition on contracting with, and procurement of products and services from— (A) Toshiba Machine Compginy and Kongsberg Trading Company, and (B) any other foreign person whom the President finds to have knowingly facilitated the diversion of advanced milling machinery by Toshiba Machine Company and Kongsberg Trading Company to the Soviet Union, by any department, agency, or instrumentality of the United States Government; and (2) a prohibition on the importation into the United States of all products produced by Toshiba Machine Company, Kongsberg Trading Company, and any foreign person described in paragraph (IXB). President of U.S. Contracts. 50 u s e app. 2401a note. Qo) SANCTIONS AGAINST TOSHIBA CORPORATION AND KONGSBERG VAAPENFABRIKK.—^The President shall impose, for a period of 3 years, a prohibition on contracting with, and procurement of products and services from, the Toshiba Corporation and Kongsberg Vaapenfabrikk, by any department, agency, or instrumentality of the United States (Jovemment. (c) EJxcEPTiONS.—^The President shall not apply sanctions imder this section— (1) in the case of procurement of defense articles or defense services— (A) under existing contracts or subcontracts, including exercise of options for production quantities to satisfy United States operational military requirements; (B) if the President determines that the company or foreign person to whom the sanctions would otherwise be applied is a sole source supplier of essential defense articles or services and no alternative supplier can be identified; or (C) if the President determines that such articles or services are essential to the national security under defense coproduction agreements; or (2)to(A) products or services provided under contracts or other binding agreements (as such terms are defined by the President in r^ulations) entered into before June 30, 1987; (B) spare parts; (C) component parts, but not finished products, essential to United States products or production; (D) routine servicing and maintenance of products; or (E) information and technology. (d) DEFINITIONS.—For purposes of this section— (1) the term "component part" means any article which is not usable for its intended functions without being imbedded or i n t ^ r a t e d into any other product and which, if used in production of a finished product, would be substantially transformed in that process; (2) the term "finished product" means any article which is usable for its intended functions without being imbedded in or i n t ^ r a t e d into any other product, but in no case shall such Defense and national security. Science and technology. 102 STAT. 1366 PUBLIC LAW 100-418—AUG. 23, 1988 term be deemed to include an article produced by a person other than a sanctioned person that contains parts or components of the sanctioned person if the parts or components have been substantially transformed during production of the finished product; and (3) the term "sanctioned person" means a company or other foreign person upon whom prohibitions have been imposed under subsection (a) or (b). SEC. 2444. MANDATORY SANCTIONS FOR FUTURE VIOLATIONS. The Act is amended by inserting after section 11 the following new section: MULTILATERAL EXPORT CONTROL VIOLATIONS 50 u s e app. 2410a. Defense and national security. Arms and munitions. Contracts. Defense and national security. Contracts. "SEC. 11 A . (a) DETERMINATION BY THE PRESIDENT.—The President, subject to subsection (c), shall apply sanctions under subsection (b) for a period of not less than 2 years and not more than 5 years, if the President determines that— "(1) a foreign person has violated any regulation issued by a country to control exports for national security purposes pursuant to the agreement of the group known as the Coordinating Committee, and "(2) such violation has resulted in substantial enhancement of Soviet and East bloc capabilities in submarine or antisubmarine warfare, ballistic or antiballistic missile technology, strategic aircraft, command, control, communications and intelligence, or other critical technologies as determined by the President, on the advice of the National Security Council, to represent a serious adverse impact on the strategic balance of forces. The President shall notify the Congress of each action taken under this section. This section, except subsections (h) and (j), applies only to violations that occur after the date of the enactment of the Export Enhancement Act of 1988. "(b) SANCTIONS.—The sanctions referred to in subsection (a) shall apply to the foreign person committing the violation, as well as to any parent, affiliate, subsidiary, and successor entity of the foreign person, and, except as provided in subsection (c), are as follows: "(1) a prohibition on contracting with, and procurement of products and services from, a sanctioned person, by any department, agency, or instrumentality of the United States Government, and "(2) a prohibition on importation into the United States of all products produced by a sanctioned person. "(c) EXCEPTIONS.—The President shall not apply sanctions under this section— "(1) in the case of procurement of defense articles or defense services— "(A) under existing contracts or subcontracts, including the exercise of options for production quantities to satisfy United States operational military requirements; "(B) if the President determines that the foreign person or other entity to which the sanctions would otherwise be applied is a sole source supplier of essential defense articles or services and no alternative supplier can be identified; or PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1367 "(C) if the President determines that such articles or services are essential to the national security under defense coproduction agreements; or "(2)to— "(A) products or services provided under contracts or other binding agreements (as such terms are defined by the President in r^ulations) entered into before the date on which the President notifies the (Dongress of the intention to impose the sanctions; "(B) spare parts; "(C) component parts, but not finished products, essential to United States products or production; "(D) routine servicing and maintenance of products; or "(E) information and technolc^y. "(d) EXCLUSION.—The President shall not apply sanctions under this section to a parent, affiliate, subsidiary, and successor entity of a foreign person if the President determines that— "(1) the parent, affiliate, subsidiary, or successor entity (as the case may be) has not knowingly violated the export control r ^ u l a t i o n violated by the foreign person, and "(2) the government of the country with jurisdiction over the parent, af^iate, subsidiary, or successor entity had in effect, at the time of the violation by the foreign person, an effective export control system consistent with principles agreed to in the Coordinating Committee, including the following: "(A) national laws providing appropriate civil and criminal penalties and statutes of limitations sufficient to deter potential violations; "(B) a prc^ram to evaluate export license applications that includes sufficient technical expertise to assess the licensing status of exports and ensure the reliability of end-users; "(C) an enforcement mechanism that provides authority for trained enforcement officers to investigate and prevent U l ^ a l exports; "(D) a system of export control documentation to verify the movement of goods and technolc^y; and "(E) procedures for the coordination and exchange of information concerning violations of the agreement of the Coordinating Committee. "(e) DEFINITIONS.—For purposes of this section— "(1) the term 'component part' means any article which is not usable for its intended functions without being imbedded in or i n t ^ r a t e d into any other product and which, if used in production of a finished product, would be substantially transformed in that process; "(2) the term 'finished product' means any article which is usable for its intended functions without being imbedded or i n t ^ r a t e d into any other product, but in no case shall such term be deemed to include an article produced by a person other than a sanctioned person that contains parts or components of the sanctioned person if the parts or components have been substantially transformed during production of the finished product; and "(3) the term 'sanctioned person' means a foreign person, and any parent, affiliate, subsidiary, or successor entity of the for- Contracts. Science and technology. Law enforcement and crime. Law enforcement and crime. Records. 102 STAT. 1368 PUBLIC LAW 100-418—AUG. 23, 1988 eign person, upon whom sanctions have been imposed under this section. "(f) SUBSEQUENT MODIFICATIONS OF SANCTIONS.—The President President of U.S. Defense and national security. President of U.S. Research and development. Contracts. Reports. may, after consultation with the Congress, limit the scope of sanctions applied to a parent, affiliate, subsidiary, or successor entity of the foreign person determined to have committed the violation on account of which the sanctions were imposed if the President determines that— "(1) the parent, affiliate, subsidiary, or successor entity (as the case may be) has not, on the basis of available evidence, itself violated the export control regulation involved, either directly or through a course of conduct; "(2) the government with jurisdiction over the parent, affiliate, subsidiary, or successor entity has improved its export control system as measured by the criteria set forth in subsection (dX2); "(3) the parent, affiliate, subsidiary, or successor entity, has instituted improvements in internal controls sufficient to detect and prevent violations of the export control regime implemented under paragraph (2); and "(4) the impact of the sanctions imposed on the parent, affiliate, subsidiary, or successor entity is proportionate to the increased defense expenditures imposed on the United States. Notwithstanding the preceding sentence, the President may not limit the scope of the sanction referred to in subsection (bXD with respect to the parent of the foreign person determined to have committed the violation, until that sanction has been in effect for at least 2 years. "(g) REPORTS TO CONGRESS.—The President siiall include in the annual report submitted under section 14, a report on the status of any sanctions imposed under this section, including any exceptions, exclusions, or modifications of sanctions that have been applied under subsection (c), (d), or (f). "(h) DISCRETIONARY IMPOSITION OF SANCTIONS.—If the President determines that a foreign person has violated a regulation issued by a country to control exports for national security purposes pursuant to the agreement of the group known as the Coordinating Committee, but in a case in which subsection (aX2) may not apply, the President may apply the sanctions referred to in subsection (b) against that foreign person for a period of not more than 5 years. "(i) COMPENSATION FOR DIVERSION OF MILITARILY CRITICAL TECHNOLOGIES TO CONTROLLED COUNTRIES.—KD In cases in which sanc- tions have been applied against a foreign person under subsection (a), the President shall initiate discussions with the foreign person and the government with jurisdiction over that foreign person regarding compensation on the part of the foreign person in an amount proportionate to the costs of research and development and procurement of new defensive systems by the United States and the allies of the United States to counteract the effect of the technological advance achieved by the Soviet Union as a result of the violation by that foreign person. "(2) The President shall, at the time that discussions are initiated under paragraph (1), report to the Congress that such discussions are being undertaken, and shall report to the Congress the outcome of those discussions. "(j) OTHER ACTIONS BY THE PRESIDENT.—Upon making a determination under subsection (a) or (h), the President shall— PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1369 "(1) initiate consultations with the foreign government with jurisdiction over the foreign person who committed the violation involved, in order to seek prompt remedial action by that government; "(2) initiate discussions with the governments participating in the Coordinating Committee regarding the violation and means to ensure that similar violations do not occur; and "(3) consult with and report to the Congress on the nature of the violation and the actions the President proposes to take, or has taken, to rectify the situation, "(k) DAMAGES FOR CERTAIN VIOLATIONS.—(1) In any case in which the President msikes a determination under subsection (a), the Secretary of Defense shall determine the costs of restoring the military preparedness of the United States on account of the violation involved. The Secretary of Defense shall notify the Attorney General of his determination, and the Attorney General may bring an action for damages, in any appropriate district court of the United States, to recover such costs against the person who committed the violation, any person that is owned or controlled by the person who committed the violation, and any person who owns and controls the person who committed the violation. "(3) The total amount awarded in any case brought under paragraph (2) shall be determined by the court in light of the facts and circumstances, but shall not exceed the amount of the net loss to the national security of the United States. An action under this subsection shall be commenced not later than 3 years after the violation occurs, or one year after the violation is discovered, whichever is later. "fl) DEFINITION.—For purposes of this section, the term 'foreign person' means any person other than a United States person.". Reports Defense and national security. Courts, U.S. SEC. 2445. ANNUAL REPORT OF DEFENSE IMPACT. Section 14 of the Act (50 U.S.C. App. 2413) is amended by adding at the end the following new subsection: "(f) ANNUAL REPORT OF THE PRESIDENT.—The President shall submit an annual report to the Congress estimating the additional defense expenditures of the United States arising from illegal technolt^y transfers, focusing on estimated defense costs arising from i l l ^ a l t e c h n o l c ^ transfers that resulted in a serious adverse impact on the strategic balance of forces. These estimates shall be based on assessment by the intelligence community of any technology transfers that resulted in such serious adverse impact. This report may have a classified annex covering any information of a sensitive nature.". SEC. 2446. IMPROVED MULTILATERAL COOPERATION. Section 5(i) of the Act (50 U.S.C. App. 2404) (relating to multilateral export controls), as amended by section 2421 of this Act, is further amended by striking paragraphs (1) through (9) and inserting the following: "(1) Enhanced public understanding of the Committee's purpose and procedures, including publication of the list of items controlled for export by agreement of the CJommittee, t<^ether with all notes, understandings, and other aspects of such agreement of the Committee, and all changes thereto. Classified information. 102 STAT. 1370 PUBLIC LAW 100-418—AUG. 23, 1988 "(2) Periodic meetings of high-level representatives of participating governments for the purpose of coordinating export control policies and issuing policy guidance to the Committee. "(3) Strengthened legal basis for each government's export control system, including, as appropriate, increased penalties and statutes of limitations. "(4) Harmonization of export control documentation by the participating governments to verify the movement of goods and technology subject to controls by the Committee. "(5) Improved procedures for coordination and exchange of information concerning violations of the agreement of the Committee. "(6) Procedures for effective implementation of the agreement through uniform and consistent interpretations of export controls agreed to by the governments participating in the Committee. "(7) Coordination of national licensing and enforcement efforts by governments participating in the Committee, including sufficient technical expertise to assess the licensing status of exports and to ensure end-use verification. "(8) More effective procedures for enforcing export controls, including adequate training, resources, and authority for enforcement officers to investigate and prevent illegal exports. "(9) Agreement to provide adequate resources to enhance the functioning of individual national export control systems and of the Committee. "(10) Improved enforcement and compliance with the agreement through elimination of unnecessary export controls and maintenance of an effective control list. "(11) Agreement to enhance cooperation among members of the Committee in obtaining the agreement of governments outside the Committee to restrict the export of goods and technology on the International Control List, to establish an ongoing mechanism in the Committee to coordinate planning and implementation of export control measures related to such agreements, and to remove items from the International Control List if such items continue to be available to controlled countries or if the control of the items no longer serves the common strategic objectives of the members of the Committee.". SEC. 2447. TECHNICAL AND CONFORMING AMENDMENTS. (a) TRADE EXPANSION ACT OF 1962.—Section 233 of the Trade Expansion Act of 1962 (19 U.S.C 1864) is amended— (1) by striking out "(a)"; and (2) by striking out subsection (b). (b) DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 1988.—Sections 8124 and 8129 of the Department of Defense Appropriations Act, 101 Stat. 1329-85, 1988 (as contained in section 101(d) of Public Law 100-202) are 1329-86. repealed. Subtitle E—Miscellaneous Provisions SEC. 2501. TRADING WITH THE ENEMY ACT. (a) TERMINATION OF OFFICE OF A U E N PROPERTY.—(1) The Trading with the Enemy Act is amended by striking subsections (b) through PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1371 (e) of section 39 (50 U.S.C. App. 39) and inserting the following new subsection: "(b) The Attorney General shall cover into the Treasury, to the credit of miscellaneous receipts, all sums from property vested in or transferred to the Attorney General under this Act— "(1) which the Attorney General receives after the date of the enactment of the Export Enhancement Act of 1988, or "(2) which the Attorney General received before that date and which, as of that date, the Attorney General had not covered into the Treasury for deposit in the War Claims Fund, other than any such sums which the Attorney General determines in his or her discretion are the subject matter of any judicial action or proceeding.". (2) Subsection (f) of such section is amended— (A) by striking "(f)" and inserting "(c)"; and (B) by striking "through (d)" and inserting "and (b)". (b) REMOVAL OF REPORTING REQUIREMENT.—Section 6 of such Act (50 U.S.C. App. 6) is amended in the next to the last sentence by striking ": Provided further," and all that follows through the end of the section and inserting a period. SEC. 2502. LIMITATION ON EXERCISE OF EMERGENCY AUTHORITIES. (a) TRADING WITH THE ENEMY ACT.—(1) Section 5(b) of the Trading With the Enemy Act (50 U.S.C. App. 5flt))) is amended by adding at the end the following new paragraph: "(4) The authority granted to the President in this subsection does not include the authority to regulate or prohibit, directly or indirectly, the importation from any country, or the exportation to any country, whether commercial or otherwise, of publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, or other informational materials, which are not otherwise controlled for export under section 5 of the Export Administration Act of 1979 or with respect to which no acts are prohibited by chapter 37 of title 18, United States Code.". (2) The authorities conferred upon the President by section 5(b) of 50 use app. 5 the Trading With the Enemy Act, which were being exercised with note. respect to a country on July 1, 1977, as a result of a national emergency declared by the President before such date, and are being exercised on the date of the enactment of this Act, do not include the authority to r ^ u l a t e or prohibit, directly or indirectly, any activity which, under section 5(bX4) of the Trading With the Enemy Act, as added by paragraph (1) of this subsection, may not bie r ^ u l a t e d or prohibited. (b) INTERNATIONAL EMERGENCY ECONOMIC POWERS ACT.—(1) Section 203(b) of the International Emergency Economic Powers Act (50 U.S.C. 1702(b)) is amended— (A) in paragraph (1) by striking "or" after the semicolon; (B) in paragraph (2) by striking the period and inserting "; or"; and (C) by adding at the end the following: "(3) the importation from any country, or the exportation to any country, whether commercial or otherwise, of publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, or other informational materials, which are not otherwise controlled for export under section 5 of the Export Administration Act of 1979 or with respect to which no acts are prohibited by chapter 37 of title 18, United States Ckxle.". 102 STAT. 1372 50 u s e app. 1702 note. PUBLIC LAW 100-418—AUG. 23, 1988 (2) The amendments made by paragraph (1) apply to actions taken by the President under section 203 of the International Emergency Economic Powers Act before the date of the enactment of this Act which are in effect on such date of enactment, and to actions taken under such section on or after such date of enactment. SEC. 2503. BUDGET ACT. Any new spending authority (within the meaning of section 401 of the Congressional Budget Act of 1974) which is provided under this title shall be effective for any fiscal year only to the extent or in such amounts as are provided in appropriation Acts. Exchange Rates and International Economic Policy Coordination Act of 1988. 22 u s e 5301. 22 u s e 5302. TITLE III—INTERNATIONAL FINANCIAL POLICY Subtitle A—Exchange Rates and International Economic Policy Coordination SEC. 3001. SHORT TITLE. This subtitle may be cited as the "Exchange Rates and International Economic Policy Coordination Act of 1988". SEC. 3002. FINDINGS. The Congress finds that— (1) the macroeconomic policies, including the exchange rate policies, of the leading industrialized nations require improved coordination and are not consistent with long-term economic growth and financial stability; (2) currency values have a major role in determining the patterns of production and trade in the world economy; (3) the rise in the value of the dollar in the early 1980's contributed substantially to our current trade deficit; (4) exchange rates among major trading nations have become increasingly volatile and a pattern of exchange rates has at times developed which contribute to substantial and persistent imbalances in the flow of goods and services between nations, imposing serious strains on the world trading system and frustrating both business and government planning; (5) capital flows between nations have become very large compared to trade flows, respond at times quickly and dramatically to policy and economic changes, and, for these reasons, contribute significantly to uncertainty in financial markets, the volatility of exchange rates, and the development of exchange rates which produce imbalances in the flow of goods and services between nations; (6) policy initiatives by some major trading nations that manipulate the value of their currencies in relation to the United States dollar to gain competitive advantage continue to create serious competitive problems for United States industries; (7) a more stable exchange rate for the dollar at a level consistent with a more appropriate and sustainable balance in the United States current account should be a major focus of national economic policy; PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1373 (8) procedures for improving the coordination of macroeconomic policy need to be strengthened considerably; and (9) under appropriate circumstances, intervention by the United States in foreign exchange markets as part of a coordinated international strategic intervention effort could produce more orderly adjustment of foreign exchange markets and, in combination with necessary macroeconomic policy changes, assist adjustment toward a more appropriate and sustainable balance in current accounts. SEC. 3003. STATEMENT OF POLICY. 22 USC 5303. It is the policy of the United States that— (1) the United States and the other major industrialized countries should take steps to continue the process of coordinating monetary, fiscal, and structural policies initiated in the Plaza Agreement of September 1985; (2) the goal of the United States in international economic negotiations should be to achieve macroeconomic policies and exchange rates consistent with more appropriate and sustainable balances in trade and capital flows and to foster price stability in conjunction with economic growth; (3) the United States, in close coordination with the other major industrialized countries should, where appropriate, participate in international currency markets with the objective of producing more orderly adjustment of foreign exchange markets and, in combination with necessary macroeconomic policy changes, assisting adjustment toward a more appropriate and sustainable balance in current accounts; and (4) the accountability of the President for the impact of economic policies and exchange rates on trade competitiveness should be increased. SEC. 3004. INTERNATIONAL NEGOTIATIONS ON EXCHANGE RATE AND ECONOMIC POLICIES. 22 USC 5304. (a) MULTILATERAL NEGOTIATIONS.—The President shall seek to President of U.S. confer and negotiate with other countries— (1) to achieve— (A) better coordination of macroeconomic policies of the major industrialized nations; and (B) more appropriate and sustainable levels of trade and current account balances, and exchange rates of the dollar and other currencies consistent with such balances; and (2) to develop a program for improving existing mechanisms for coordination and improving the functioning of the exchange rate system to provide for long-term exchange rate stability consistent with more appropriate and sustainable current account balances. (b) BILATERAL NEGOTIATIONS.—The Secretary of the Treasury shall analyze on an annual basis the exchange rate policies of foreign countries, in consultation with the International Monetary Fund, and consider whether countries manipulate the rate of exchange between their currency and the United States dollar for purposes of preventing effective balance of payments adjustments or gaining unfair competitive advantage in international trade. If the Secretary considers that such manipulation is occurring with respect to countries that (1) have material global current account surpluses; and (2) have significant bilateral trade surpluses with the United 102 STAT. 1374 PUBLIC LAW 100-418—AUG. 23, 1988 States, the Secretary of the Treasury shall take action to initiate negotiations with such foreign countries on an expedited basis, in the International Monetary Fund or bilaterally, for the purpose of ensuring that such countries regularly and promptly adjust the rate of exchange between their currencies and the United States dollar to permit effective balance of pajmients adjustments and to eliminate the unfair advantage. The Secretary shall not be required to initiate negotiations in cases where such negotiations would have a serious detrimental impact on vital national economic and security interests; in such cases, the Secretary shall inform the chairman and the ranking minority member of the Committee on Banking, Housing, and Urban Affairs of the Senate and of the Committee on Banking, Finance and Urban Affairs of the House of Representatives of his determination. 22 u s e 5305. SEC. 3005. REPORTING REQUIREMENTS. (a) REPORTS REQUIRED.—In furtherance of the purpose of this title, the Secretary, after consultation with the Chairman of the Board, shall submit to the Committee on Banking, Finance and Urban Aifairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, on or before October 15 of each year, a written report on international economic policy, including exchange rate policy. The Secretary shall provide a written update of developments six months after the initial report. In addition, the Secretary shall appear, if requested, before both committees to provide testimony on these reports. (b) CONTENTS OF REPORT.—Each report submitted under subsection (a) shall contain— (1) an analysis of currency market developments and the relationship between the United States doUar and the currencies of our major trade competitors; (2) an evaluation of the factors in the United States and other economies that underlie conditions in the currency markets, including developments in bilateral trade and capital flows; (3) a description of currency intervention or other actions undertaken to adjust the actual exchange rate of the dollar; (4) an assessment of the impact of the exchange rate of the United States dollar on— (A) the ability of the United States to maintain a more appropriate and sustainable balance in its current account and merchandise trade account; (B) production, employment, and noninflationary growth in the United States; (C) the international competitive performance of United States industries and the external indebtedness of the United States; (5) recommendations for any changes necessary in United States economic policy to attain a more appropriate and sustainable balance in the current account; (6) the results of negotiations conducted pursuant to section 3004; (7) key issues in United States policies £u-ising from the most recent consultation requested by the International Monetary Fund under article IV of the Fund's Articles of Agreement; and (8) a report on the size and composition of international capital flows, and the factors contributing to such flows, includ- PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1375 ing, where possible, an assessment of the impact of such flows on exchange rates and trade flows. (c) REPORT BY BOARD OF GOVERNORS.—Section 2A(1) of the Federal Reserve Act (12 U.S.C. 225a(l)) is amended by inserting after "the Nation" the following: ", including an analysis of the impact of the exchange rate of the dollar on those trends". SEC. 3006. DEFINITIONS. 22 u s e 5306. As used in this subtitle: (1) SECRETARY.—The term "Secretary" means the Secretary of the Treasury. (2) BOARD.—The term "Board" means the Board of Governors of the Federal Reserve System. Subtitle B—International Debt PART I—FINDINGS, PURPOSES, AND STATEMENT OF POLICY SEC. 3101. SHORT TITLE. International Debt Management Act of 1988. Developing countries. Banks and banking. 22 u s e 5321. This subtitle may be cited as the "International Debt Mginagement Act of 1988". SEC. 3102. FINDINGS. The Congress finds that— (1) the international debt problem threatens the safety and soundness of the international financial system, the stability of the international trading system, and the economic development of the debtor countries; (2) orderly reduction of international trade imbalances requires very substantial growth in all parts of the world economy, particularly in the developing countries; (3) growth in developing countries with substantial external deists has been significantly constrained over the last several years by a combination of high debt service obligations and insufficient new flows of financial resources to these countries; (4) substantial interest payment outflows from debtor countries, combined with inadequate net new capital inflows, have produced a significant net transfer of financial resources from debtor to creditor countries; (5) negative resource transfers at present levels severely depress both investment and growth in the debtor countries, and force debtor countries to reduce imports and expand exports in order to meet their debt service obligations; (6) current adjustment policies in debtor countries, which depress domestic demand and increase production for export, help to depress world commodity prices and limit the growth of export markets for United States industries; (7) the United States has borne a disproportionate share of the burden of absorbing increased exports from debtor countries, while other industrialized countries have increased their imports from developing countries only slightly; (8) current approaches to the debt problem should not rely solely on new lending as a solution to the debt problem, and should focus on other financing alternatives including a reduction in current debt service obligations; 22 u s e 5322. 102 STAT. 1376 22 use 5323. 22 use 5324. PUBLIC LAW 100-418—AUG. 23, 1988 (9) new international mechanisms to improve the management of the debt problem and to expand the range of financing options available to developing countries should be explored; and (10) industrial countries with strong current account surpluses have a disproportionate share of the world's capital resources, and bear an additional responsibility for contributing to a viable long-term solution to the debt problem. SEC. 3103. PURPOSES. The purposes of this subtitle are— (1) to expand the world trading system and raise the level of exports from the United States to the developing countries in order to reduce the United States trade deficit and foster economic expansion and an increase in the standard of living throughout the world; (2) to alleviate the current international debt problem in order to make the debt situation of developing countries more manageable and permit the resumption of sustained growth in those countries; and (3) to increase the stability of the world financial system and ensure the safety and soundness of United States depository institutions. SEC 3104. STATEMENT OF POLICY. It is the policy of the United States that— (1) increasing growth in the developing world is a major goal of international economic policy; (2) it is necessary to broaden the range of options in dealing with the debt problem to include improved mechanisms to restructure existing debt; (3) active consideration of a new multilateral authority to improve the management of the debt problem and to share the burdens of adjustment more equitably must be undertaken; and (4) countries with strong current account surpluses bear a major responsibility for providing the financial resources needed for growth in the developing world. PART II—THE INTERNATIONAL DEBT MANAGEMENT AUTHORITY 22 u s e 5331. SEC. 3111. INTERNATIONAL INmATIVE. (a) DiREcnvE.— (1) STUDY.—^The Secretary of the Treasury shall study the feasibility and advisability of establishing the International Debt Management Authority described in this section. (2) EIxPLANATiON OP DETERMINATIONS.—If the Secretary of the Treasury determines that initiation of international discussions with r^ard to such authority would (A) result in material increase in the discount at which sovereign debt is sold, (B) materially increase the probability of default on such debt, or (C) matenally enhance the likelihood of debt service failure or disruption, the Secretary shall include in his interim reports to the Congress an explanation in detail of the reasons for such determination. / PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1377 (3) INITIATION OF DISCUSSIONS.—Unless such a determination is made, the Secretary of the Treasury shall initiate discussions with such industrialized and developing countries as the Secretary may determine to be appropriate with the intent to negotiate the establishment of the International Debt Management Authority, which would undertake to— (A) purchase sovereign debt of less developed countries from private creditors a t an appropriate discount; (B) enter into negotiations with the debtor countries for the purpose of restructuring the debt in order to— (i) ease the current debt service burden on the debtor countries; and (ii) provide additional opportunities for economic growth in both debtor and industrialized countries; and (C) assist the creditor banks in the voluntary disposition of their Third World loan portfolio. (b) OBJECTIVES.—In any discussions initiated under subsection (a), the Secretary should include the following specific proposals: (1) That any loan restructuring assistance provided by such Loans. an authority to any debtor nation should involve substantial commitments by the debtor to (A) economic policies designed to improve resource utilization and minimize capital flight, and (B) preparation of an economic management plan calculated to provide sustained economic growth and to allow the debtor to meet its restructured debt obligations. (2) That support for such an authority should come from industrialized countries, and that greater support should be expected from countries with strong current account surpluses. (3) That such an authority should have a clearly defined close working relationship with the International Monetary Fund and the International Bank for Reconstruction and Development and the various regional development banks. (4) That such an authority should be designed to operate as a self-supporting entity, requiring no routine appropriation of resources from any member government, and to function subject to the prohibitions contained in the first sentence of section 3112(a). (5) That such an authority should have a defined termination date and a clear proposal for the restoration of creditworthiness to debtor countries within this timeframe. (c) INTERIM REPORTS.—At the end of the 6-month period beginning on the date of enactment of this Act and at the end of the 12-month period beginning on such date of enactment, the Secretary of the Treasury shall submit a report on the progress being made on the study or in discussions described in subsection (a) to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs and the Committee on Foreign Relations of the Senate, and shall consult with such committees after submitting each such report. (d) FINAL REPORT.—On the conclusion of the study or of discus- sions described in subsection (a), the Secretary shall transmit a report containing a detailed description thereof to the Committee on Banking, Finance £md Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs and the Committee on Foreign Relations of the Senate, together with such recommendations for legislation which the Secretary may 102 STAT. 1378 PUBLIC LAW 100-418—AUG. 23, 1988 determine to be necessary or appropriate for the establishment of the International Debt Management Authority. 22 u s e 5332. Reports. 22 u s e 5333. SEC. 3112. ACTIONS TO FACILITATE CREATION OF THE AUTHORITY. (a) I N GENERAL.—No funds, appropriations, contributions, callable capital, financial guarantee, or any other financial support or obl^ation or contingent support or obligation on the part of the United States Government may be used for the creation, operation, or support of the International Debt Management Authority specified in section 3111, without the express approvEd of the Congress through subsequent law, nor shall any expenses associated with such authority, either directly or indirectly, accrue to any United States person without the consent of such person. Except as restricted in the preceding sentence, the Secretary of the Treasury shall review all potential resources available to the multilateral financial institutions which could be used to support the creation of the International Debt Management Authority. In the course of this review, the Secretary shall direct— (1) the United States Executive Director of the International Monetary Fund to determine the amount of, and alternative methods by which, gold stock of the Fund which, subject to action by its Board of Governors, could be pledged as collateral to obtain financing for the activities of the authority specified in section 3111; and (2) the United States Elxecutive Director to the International Bank for Reconstruction and Development to determine the amount of, and alternative methods by which, liquid assets controlled by such Bank and not currently committed to any loan p n ^ a m which, subject to action by its Board of Governors, could be pledged as collateral for obtaining financing for the activities of the authority specified in section 3111. The Secretary of the Treasury shall include a report on the results of the review in the first report submitted under section 3111(c). Ot)) CONSTRUCTION OF SECTION.—Subsection (a) shall not be construed to affect any provision of the Articles of Agreement of the International Monetary Fund or of the International Bank for Reconstruction and Development or any agreement entered into under either of such Agreements. SEC. 3113. IMF-WORLD BANK REVIEW. (a) IMF REVIEW.—The United States Executive Director of the International Monetary Fund shall request the management of the International Monetaiy Fund to prepare a review and analysis of the debt burden of the developing countries, with particular attention to alternatives for dealing with the debt problem including new lending instruments, rescheduling and refinancing of existing debt, securitization and debt conversion techniques, discounted debt repurchases, and the International Debt Management Authority described in section 3111 no later than 1 year after the date of the enactment of this Act. (b) WORLD BANK REVIEW.—^The United States Executive Director to the International Bank for Reconstruction and Development shall request the management of the International Bank for Reconstruction and Development to prepare a review and analysis of the debt burden of the developing countries, with particular attention to alternatives for dealing with the debt problem including new lending instruments, rescheduling and refinancing of existing debt, PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1379 securitization and debt conversion techniques, discounted debt repurchases, and the International Debt Management Authority described in section 3111 no later than 1 year after the date of the enactment of this Act. PART III—REGULATORY PROVISIONS AFFECTING INTERNATIONAL DEBT SEC. 3121. PROVISIONS RELATING TO THE REGULATION OF DEPOSITORY INSTITUTIONS. (a) REGULATORY OBJECTIVES.—It is the sense of the Congress that regulations prescribed by Federal banking regulatory agencies which affect the international assets of United States commercial banks should grant the widest possible latitude to the banks for negotiating principal and interest reductions with respect to obligations of heavily indebted sovereign borrowers. (b) FLEXIBIUTY IN DEBT RESTRUCTURING.—It is the intent of the Loans. Congress that, in applying generally accepted accounting standards. Federal agencies which regulate and oversee the operations of depository institutions (within the meaning given to such term by clauses (i) through (vi) of section 19(bXlXA) of the Federal Reserve Act) apply to such institutions maximum flexibility in determining the asset value of restructured loans to heavily indebted sovereign borrowers and in accounting for the effects of such restructuring prospectively. (c) RECAPITALIZATION.—It is the intent of the Congress that Federal agencies which regulate and oversee the operations of depository institutions (within the meaning given to such term by clauses (i) through (vi) of section 19(bXlXA) of the Federal Reserve Act) should require depository institutions with substantial amounts of loans to heavily indebted sovereign borrowers to seek, as appropriate, expsuided recapitalization through equity financing to ensure that prudent institutioned capital-to-total asset ratios are established and maintained. (d) RESERVES FOR LOAN LOSSES.—It is the intent of the Congress that Federal agencies which regulate and oversee the operations of depository institutions (within the meaning given to such term by clauses (i) through (vi) of section 19(bXlXA) of the Federal Reserve Act) should seek to ensure that appropriate levels of reserves be established by depository institutions engaged in substantial lending to heavily indebted sovereign borrowers in accordance with both the credit and country risks associated with such lending. (e) DATA ON BANKS FOREIGN LOAN RISKS.—Section 913 of the International Lending Supervision Act of 1983 is amended by adding 12 use 3912. at the end thereof the following new subsection: "(d) To ensure that Congress is fully informed of the risks to our Reports. banking system posed by troubled foreign loans, the Federal banking agencies, before March 31, 1989, and on April 30 of each succeeding year, shall jointly submit to the Committee on Banking, Housing, and Urbem Affairs of the Senate and Committee on Banking, Finance and Urban Affairs of the House of Representatives a report that shall include the following: "(1) The level of loan exposure of those banking institutions under the iurisdiction of each agency which is rated 'valueimpaired', substandard', 'other transfer risk problems', or in any other troubled debt category as may be established by the 102 STAT. 1380 PUBLIC LAW 100-418—AUG. 23, 1988 banking agencies. This tabulation shall clearly identify aggregate loan exposures of the 9 largest United States banks under the agencies jurisdiction, the aggregate loan exposures of the next 13 largest banks, and the aggregate exposure of all other such banks which have significant country risk exposures. This tabulation shaU include a separate section identifying, to the extent feasible, new bank loans to countries with debt service problems which were made within the past year preceding the date on which the report required under this subsection is due, and shall include the amount of sovereign loans written off or sold by such banks during the preceding year. "(2) Progress that has been achieved by the appropriate Federal banking agencies and by banking institutions in reducing the risk to the economy of the United States posed by the exposure of banking institutions to troubled international loans through appropriate voluntary or regulatory policies, including increases in capital and reserves of banking institutions. "(3) The relationship between lending activity by the United S t a t ^ banks and foreign banks in countries experiencing debt service difficulties and exports from the United States and other lending countries to these markets, and the extent to which United States banking institutions can be encouraged to continue to make credit available to finance necessary growth in international trade, and particularly to finance United States exports. "(4) The response of regulatory agencies in other countries to the international debt problems, including measures which encourage the building of capitail and reserves by foreign banking institutions, tax treatment of reserves, encouragement of new lending to promote international trade, and measures which may place United States banking institutions at a competitive disadvantage when compared with foreign banking institutions. "(5) Steps that have been taken during the previous year by countries experiencing debt service difficulties to enhance conditions for private direct investment (including investment by United States persons) and to eliminate production subsidies, attain price stabiUty, and undertake such other steps as will remove the causes of their debt service difficulties. Classified Each appropriate Federal banking agency may provide data in the information. a g g r ^ a t e to the extent necessary to preserve the i n t ^ r i t y and confidentiality of the r ^ u l a t o r y and examination process.". SEC. 3122. STUDIES RELATING TO THE REGULATION OF DEPOSITORY INSTITUTIONS. (a) REGULATORY STUDY REQUIRED.—The Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation shall conduct a study to determine the extent of any regulatory obstacle to negotiated reductions in the debt service obligations associated with foreign debt. Loans. flt)) SpEcaOTC FACTORS To B E STUDIED.—The study required by subsection (a) shall include an analysis of regulatory and accounting obstacles to various forms of debt restructuring, including negotiated interest reduction, the amortization of loan losses, securitization and debt conversion techniques, and discounted debt repurchases, as well as an analysis of the profitability of commercial bsmk lending to developing countries during the 10-year period PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1381 ending on December 31,1986. The analysis should include an assessment of the impact of the various forms of debt restructuring on the development of a secondary market in developing country debt and on the safety and soundness of the United States banking system, (c) REPORT REQUIRED.—Within 6 months after the date of the enactment of this Act, the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation shall transmit to the Congress a report containing the findings and conclusions of such agencies with respect to the study required under subsection (a), together with any recommendations concerning legislation which such agencies determine to be necessary or appropriate to remove regulatory obstacles to negotiated reductions in the debt service obligations associated with sovereign debt. SEC. 3123. LIMITED PURPOSE SPECIAL DRAWING RIGHTS FOR THE POOREST HEAVILY INDEBTED COUNTRIES. (a) STUDY REQUIRED.— (1) I N GENERAL.—The Secretary of the Treasury, in consultation with the directors and staff of the International Monetary Fund and such other interested parties as the Secretary may determine to be appropriate, shall conduct a study of the feasibility and the efficacy of reducing the international debt of the poorest of the heavily indebted countries through a one-time allocation by the International Monetary Fund of limited purpose Special Drawing Rights to such countries in accordance with a plan which provides that— (A) the allocation be made without regard to the quota established for any such country under the Articles of Agreement of the Fund; (B) limited purpose Special Drawing Rights be used only to repay official debt of any such country; (C) the allocation of limited purpose Special Drawing Rights to any such country not be treated as an allocation on which such country must pay interest to the Fund; and (D) the use of limited purpose Special Drawing Rights by any such country to repay officisd debt shall be treated as an allocation of regular Special Drawing Rights to the creditor. (2) ADDITIONAL FACTORS TO BE STUDIED.—The study required under paragraph (1) shall include the following: (A) To the extent the creation and allocation of the limited purpose Special Drawing Rights described in paragraph (1) would require an amendment of the Articles of Agreement of the International Monetary Fund, an assessment of the period of time within which such amendment could be ratified by the member nations, based on discussions with the major members of the Fund. (B) An assessment of other means for achieving the objectives of principal and interest reduction on official debt of the poorest heavily indebted countries through the use of Special Drawing Rights. (C) A comparative evaluation of proposals of other members of the International Monetary Fund, the directors and staff of the Fund, and other interested parties. (D) An analysis of the effect the implementation of the provisions in paragraph (1) would have on bilateral and 102 STAT. 1382 PUBLIC LAW 100-418—AUG. 23, 1988 multilateral lenders, the international monetary system, and such other provisions of this Act as may be appropriate. (E) A comparative analysis of the available alternatives identified under subparagraph (B) or (C). (b) REPORT REQUIRED.—Within 3 months after the date of the enactment of this Act, the Secretary of the Treasury shall submit a report to the Ck)mmittee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs and the Committee on Foreign Relations of the Senate containing the findings and conclusions of the Secretary pursuant to the study required under subsection (a), together with— (1) the recommendation of the Secretary as to which, of all the alternatives for providing relief for the poorest of the heavily indebted countries which were assessed in connection with such study, represents the best available option; and (2) recommendations for such legislation and administrative action as the Secretary determines to be necessary and appropriate to implement such option. Multilateral Development Banks Procurement Act of 1988. 22 u s e 262a note. 22 u s e 262a. Subtitle C—Multilateral Development Banks SEC. 3201. SHORT TITLE. This subtitle may be cited as the 'Multilateral Development Banks Procurement Act of 1988". SEC. 3202. MULTILATERAL DEVELOPMENT BANK PROCUREMENT. (a) EIxECunvE DIRECTORS.—^The Secretary of the Treasury shall instruct the United States Executive Director of each multilateral development bank to attach a high priority to promoting opportunities for exports for goods and services from the United States and, in carrying out this fimction, to investigate thoroughly any complaints from United States bidders about the awarding of procurement contracts by the multilateral development banks to ensure that all contract procedures and rules of the banks are observed and that United States firms are treated fairly. (b) OFFICER OF PROCUREMENT.— (1) ESTABLISHMENT.—The Secretary of the Treasury shall designate, within the Office of International Affairs in the Department of the Treasury, an officer of multilateral development bank procurement. (2) FUNCTION.—^The officer shall act as the liaison between the Department of the Treasury, the Department of Commerce, and the United States Executive Directors' offices in the multilateral development banks, in canying out this section. The officer shall cooperate with the Department of Commerce in efforts to improve opportunities for multilateral development bank procurement by United States companies. (b) MULTILATERAL DEVELOPMENT BANK DEFINED.—As used in this section, the term "multilateral development bank" includes the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Inter-American Development Bank, the InterAmerican Investment Corporation, the Asian Development Bank, the African Development Bank, and the African Development Fund. PUBLIC L A W 100-418—AUG. 23, 1988 102 STAT. 1383 Subtitle D—Export-Import Bank and Tied Aid Credit Amendments SEC. 3301. SHORT TITLE. Export-Import Bank and Tied Aid Credit Amendments of 1988 12 u s e 635 note. This subtitle may be cited as the "Export-Import Bank and Tied Aid Credit Amendments of 1988". SEC. 3302. PROVISIONS RELATING TO TIED AID CREDIT. (a) FINDINGS.—The Congress finds that— (1) negotiations have led to an international agreement to increase the grant element required in tied aid credit offers; (2) concern continues to exist that countries party to the agreement may continue to offer tied aid credits that deviate from the agreement; (3) in such cases, the United States could continue to lose export sales in connection with the aggressive, and in some cases, unfair, tied aid practices of such countries; and (4) in such cases, the Export-Import Bank of the United States should continue to use the Tied Aid Credit Fund established by section 15(c) of the Export-Import Bank Act of 1945 to discourage the use of such predatory ^nancing practices. (b) EXTENSION OF TIED A I D CREDIT FUND.—Subsections (cX2) and (e)(1) of section 15 of the Export-Import Bank Act of 1945 (12 U.S.C. 635i-3 (c)(2) and (eXD) are each amended by striking out "and 1988" and inserting in lieu thereof "1988, and 1989". (c) REPORT.— (1) I N GENERAL.—On or before December 31, 1988, the President and Chairman of the Export-Import Bank of the United States, in cooperation with other appropriate government Eigencies, shall submit to the Speaker of the House of Representatives and the President pro tempore of the Senate a written report identifying and analyzing the tied aid credit practices of other countries and shall make recommendations for dealing with such practices. (2) CONSULTATION.—In preparing the report described in paragraph (1), the Export-Import Bank shall consult with appropriate international organizations such as the International Bank for Reconstruction and Development, the International Monetary Fund, and the Development Assistance Committee of the Organization for Economic Cooperation and Development, and with the countries which are party to the Arrangement on Guidelines for Officially Supported Export Credits adopted by the Organization for Economic C!ooperation and Development in November 1987. SEC. 3303. REPORT ON UNITED STATES EXPORTS TO DEVELOPING COUNTRIES. Within 90 days after the date of the enactment of this Act, the President and Chairman of the Export-Import Bank of the United States shall submit to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a written report which contains— 12 u s e 635i-3 note. 102 STAT. 1384 PUBLIC LAW 100-418—AUG. 23, 1988 (1) an assessment of the effectiveness of recent program changes in increasing United States exports to developing countries; and (2) an identification of additional specific policy and program changes which— (A) would enable the Bank to increase the financing of United States exports to developing countries; and (B) would encourage greater private sector participation in such financing efforts. SEC. 3304. AMENDMENTS TO SECTION 2(e) OF THE EXPORT-IMPORT BANK ACT OF 1945. (a) TIME FOR DETERMINING SUPPUES.—Section 2(eXlXA)(i) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(e)(l)(A)(i)) is amended by striking out "productive capacity is expected to become operative" and inserting in lieu thereof "commodity will first be sold". (b) MAKING COMPARATIVE INJURY DETERMINATIONS.—Section 2(e)(2) of such Act (12 U.S.C. 635(eX2)) is amended— (1) by inserting "short- and long-term" before "injury to United States producers"; and (2) by inserting "and emplo3mient" before "of the same, similar, or competing commodity". (c) SUBSTANTIAL INJURY DEFINED FOR EXPORT-IMPORT BANK DETER- MINATIONS.—Section 2(e) of such Act (12 U.S.C. 635(e)) is amended by adding at the end the following: "(3) DEFINITION.—For purposes of paragraph (IXB), the extension of any credit or guarantee by the Bank will cause substantial injury if the £miount of the capacity for production established, or the amount of the increase in such capacity expanded, by such credit or guarantee equals or exceeds 1 percent of United States production.". Export Trading Company Act Amendments of 1988. 12 u s e 1841 note. Subtltlc E—Export Trading Company Act A J x Amendments SEC. 3401. SHORT TITLE. This subtitle may be cited as the "Export Trading Company Act Amendments of 1988". SEC. 3402. EXPORT TRADING COMPANY ACT AMENDMENTS. (a) STANDARDS FOR DETERMINATION OF EXPORT TRADING COMPANY STATUS.—Section 4(cX14) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(c)(14)) is amended by inserting after subparagraph (F) the following new subparagraph: "(G) DETERMINATION OF STATUS AS EXPORT TRADING COMPANY.— "(i) TIME PERIOD REQUIREMENTS.—For purposes of determining whether an export trading company is operated principally for the purposes described in subparagraph (FXi)— "(I) the operations of such company during the 2year period beginning on the date such company commences operations shall not be taken into account in making any such determination; and PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1385 "(ID not less than 4 consecutive years of operations of such company (not including any portion of the period referred to in subclause (I)) shall be taken into account in making any such determination, "(ii) EXPORT REVENUE REQUIREMENTS.—A company shall not be treated as operated principally for the purposes described in subparagraph (FXi) unless— "(I) the revenues of such company from the export, or facilitating the export, of goods or services produced in the United States exceed the revenues of such company from the import, or facilitating the import, into the United States of goods or services produced outside the United States; and "(Q) at least Vz of such company's total revenues are revenues from the export, or facilitating the export, of goods or services produced in the United States by persons not affiliated with such company.". (b) LEVERAGE.—Section 4(cX14XA) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(cX14XA)) is amended by redesignating clauses (v) and (vi) as clauses (vi) and (vii), respectively, and by inserting after clause (iv) the following new clause: "(v) LEVERAGE.—The Board may not disapprove any pro- Securities. posed investment solely on the basis of the anticipated or proposed asset-to-equity ratio of the export trading company with respect to which such investment is proposed, unless the anticipated or proposed annual average asset-toequity ratio is greater than 20-to-l.". (c) INVENTORY.—Section 4(cX14XA)) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(cX14)) is amended by inserting after subparagraph (G) (as added by subsection (a) of this section) the following new subparagraph: "(H) INVENTORY.— "(i) N O GENERAL LIMITATION.—The Board may not prescribe by regulation any maximum dollar amount limitation on the value of goods which an export trading company may maintain in inventory at any time. "(ii) SPECIFIC LIMITATION BY ORDER.—Notwithstand- ing clause (i), the Board may issue an order establishing a maximimi dollar amount limitation on the value of goods which a particular export trading company may maintain in inventory at any time (after such company has been operating for a reasonable period of time) if the Board finds that, under the facts and circumstances, such limitation is necessary to prevent risks that would affect the financial or managerial resources of an investor bank holding company to an extent which would be likely to have a materially adverse effect on the safety and soundness of any subsidiary bank of such bank holding company.". 102 STAT. 1386 AS^fYgg?^^" 22 u s e 5341. PUBLIC LAW 100-418—AUG. 23, 1988 Subtitle F—Primary Dealers SEC. 3501. SHORT TITLE. This subtitle may be cited £is the "Primary Dealers Act of 1988". 22 u s e 5342. SEC. 3502. REQUIREMENT OF NATIONAL TREATMENT IN UNDERWRITING GOVERNMENT DEBT INSTRUMENTS. (a) FINDINGS.—The Congress finds that— (1) United States companies can successfully compete in foreign markets if they are given fair access to such markets; (2) a trade surplus in services could offset the deficit in manufactured goods and help lower the overall trade deficit significantly; (3) in contrast to the barriers faced by United States firms in Japan, Japanese firms generally have enjoyed access to United States financial markets on the same terms as United States firms; and (4) United States firms seeking to compete in Japan face or have faced a variety of discriminatory barriers effectively precluding such firms from fairly competing for Japanese business, including— (A) limitations on membership on the Tokyo Stock Exchange; (B) high fixed commission rates (ranging as high as 80 percent) which must be paid to members of the exchange by nonmembers for executing trades; (C) unequal opportunities to participate in and act as lead manager for equity and bond underwritings; (D) restrictions on access to automated teller machines; (E) arbitrarily applied employment requirements for opening branch offices; (F) long delays in processing applications and granting approvals for licenses to operate; and (G) restrictions on foreign institutions' participation in Ministry of Finance policy advisory councils. 0)) DESIGNATION OF CERTAIN PERSONS AS PRIMARY DEALERS PROHIBITED.— (1) GENERAL RULE.—Neither the Board of Governors of the Federal Reserve System nor the Federal Reserve Bank of New York may designate, or permit the continuation of any prior designation of, any person of a foreign country as a primary dealer in government debt instruments if such foreign country does not accord to United States companies the same competitive opportunities in the underwriting and distribution of government debt instruments issued by such country as such country accords to domestic companies of such country. (2) CERTAIN PRIOR ACQUISITIONS EXCEPTED.—Paragraph (1) shall not apply to the continuation of the prior designation of a company as a primary dealer in government debt instruments if— (A) such designation occurred before July 31, 1987; and (B) before July 31,1987— (i) control of such company was acquired from a person (other than a person of a foreign country) by a person of a foreign country; or PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1387 (ii) in conjunction with a person of a foreign country, such company informed the Federal Reserve Bank of New York of the intention of such person to acquire control of such company. (c) EXCEPTION FOR COUNTRIES HAVING OR NEGOTIATING BILATERAL AGREEMENTS WITH THE UNITED STATES.—Subsection (b) shall not apply to any person of a foreign country if— (1) that country, as of January 1, 1987, was negotiating a bilateral agreement with the United States under the authority of section 102(bX4)(A) of the Trade Act of 1974 (19 U.S.C. 2112(b)(4XA)); or (2) that country has a bilateral free trade area agreement with the United States which entered into force before January 1,1987. (d) PERSON OF A FOREIGN COUNTRY DEFINED.—For purposes of this section, a person is a "person of a foreign country" if that person, or any other person which directly or indirectly owns or controls that person, is a resident of that country, is organized under the laws of that country, or has its principal place of business in that country. (e) EFFECTIVE DATE.—This section shall take effect 12 months after the date of the enactment of this Act. Subtitle G—Financial Reports SEC. 3601. SHORT TITLE. Financial Reports Act of 1988. 22 u s e 5351. This subtitle may be cited as the "Financial Reports Act of 1988". SEC. 3602. QUADRENNIAL REPORTS ON FOREIGN TREATMENT OF UNITED 22 u s e 5352. STATES FINANCIAL INSTITUTIONS. Not less frequently than every 4 years, beginning December 1, 1990, the Secretary of the Treasury, in conjunction with the Secretary of State, the Board of Grovernors of the Federal Reserve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission, and the Department of Commerce, shall report to the Congress on (1) the foreign countries from which foreign financial services institutions have entered into the business of providing financial services in the United States, (2) the kinds of financial services which are being offered, (3) the extent to which foreign countries deny national treatment to United States banking organizations and securities companies, and (4) the efforts undertaken by the United States to eliminate such discrimination. The report shall focus on those countries in which there are significant denials of national treatment which impact United States financial firms. The report shall also describe the progress of discussions pursuant to section 3603. SEC. 3603. FAIR TRADE IN FINANCIAL SERVICES. President of U.S. (a) DISCUSSIONS.—When advantageous the President or his des- 22 u s e 5353. ignee shall conduct discussions with the governments of countries that are major financial centers, aimed at: (1) ensuring that United States banking organizations and securities companies have access to foreign markets and receive national treatment in those markets; (2) reducing or eliminating barriers to, and other distortions of, international trade in financial services; 102 STAT. 1388 PUBLIC LAW 100-418—AUG. 23, 1988 (3) achieving reasonable comparability in the t3^pes of financial services permissible for financial service companies; and (4) developing uniform supervisory standards for banking organizations and securities companies, including uniform capital standards. (b) CONSULTATION BEFORE DISCUSSIONS.—Before entering into those discussions, the President or his designee shall consult with the committees of jurisdiction in the Senate and the House of Representatives. (c) RECOAIMENDATIONS.—After completing those discussions and after consultation with the committees of jurisdiction, the President shall transmit to the Congress any recommendations that have emerged from those discussions. Any recommendations for changes in United States financial laws or practices shall be accompanied by a description of the changes in foreign &iancial laws or practices that would accompany action by the Congress, and by an explanation of the benefits that would accrue to the United States from adoption of the recommendations. (d) CONSTRUCTION OF SECTION.—Nothing in this section may be construed as prior approval of any legislation which may be necessary to implement any recommendations resulting from discussions under this section. Reports. 22 u s e 5354. Agricultural Competitiveness £ind Trade Act of 1988 7 u s e 5201 note. SEC. 3604. BANKS LOAN LOSS RESERVES. The Federal Reserve Board shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives a report on the issues raised by including loan loss reserves as part of banks' primary capital for r ^ u l a t o r y purposes by March 31,1989. Such report shall include a review of the treatment of loan loss reserves and the composition of primary capital of banks in other major industrialized countries, and shall include an analysis as to whether loan loss reserves should continue to be counted as primary capital for regulatory purposes. TITLE IV—AGRICULTURAL TRADE SEC. 4001. SHORT TITLE. This title may be cited as the "Agricultural Competitiveness and Trade Act of 1988". Subtitle A—Findings, Policy, and Purpose 7 u s e 5201. SEC. 4101. FINDINGS. Congress finds that— (1) United States agricultural exports have declined by more than 36 percent since 1981, from $43,800,000,000 in 1981 to $27,900,000,000 in 1987; (2) the United States share of the world market for agricultural commodities and products has dropped by 20 percent during the last 6 years; (3) for the first time in 15 years, the United States incurred monthly agricultural trade deficits in 1986; PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1389 (4) the loss of $1,000,000,000 in United States agricultural exports causes the loss of 85,000 agricultural jobs and the loss of 60,000 nonagricultural jobs; (5) the loss of agricultural exports threatens family farms and the economic well-being of rural communities in the United States; (6) factors contributing to the loss of United States agricultural exports include changes in world agricultural markets such as— (A) the addition of new exporting nations; (B) innovations in agricultural technology; (C) increased use of export subsidies designed to lower the price of commodities on the world market; (D) the existence of barriers to agricultural trade; (E) the slowdown in the growth of world food demand in the 1980's due to cyclical economic factors, including currency fluctuations and a debt-related slowdown in the economic growth of agricultural markets in certain developing countries; and (F) the rapid buildup of surplus stocks as a consequence of favorable weather for agricultural production during the 1980's; (7) increasing the volume and value of exports is important to the financial well-being of the farm sector in the United States and to increasing farm income in the United States; (8) in order to increase agricultural exports and improve prices for farmers and ranchers in the United States, it is necessary that all agricultural export programs of the United States be used in an expeditious memner, including programs established under the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.), the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.), and section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431); (9) greater use should be made by the Secretary of Agriculture of the authorities established under section 4 of the Food for Peace Act of 1966 (7 U.S.C. 1707a), the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.), section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431), and the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.) to provide intermediate credit financing and other assistance for the esteblishment of facilities in importing countries to— (A) improve the handling, marketing, processing, storage, and distribution of imported agricultural commodities and products; and (B) increase livestock production to enhance the demand for United States feed grains; (10) food aid and export assistence programs in developing countries stimulate economic activity which causes incomes to rise, and, as incomes rise, diets improve and the demand for and ability to purchase food increases; (11) private voluntary oi^anizations and cooperatives are important and successful partners in our food aid and development programs; and (12) in addition to meeting humanitarian needs, food aid used in sales and barter programs by private voluntary organizations and cooperatives— 19-194 O—91—Part 2 13 : QL 3 102 STAT. 1390 7 use 5202. 7 use 5203. PUBLIC LAW 100-418—AUG. 23, 1988 (A) provides communities with health care, credit systems, and tools for development; and (B) establishes the infrastructure that is essential to the expansion of markets for United States agricultural commodities and products. SEC. 4102. POLICY. It is the policy of the United States— (1) to provide, through all possible means, agricultural commodities and products for export at competitive prices, with full assurance of quality and reliability of supply; (2) to support the principle of free trade and the promotion of fair trade in agricultural commodities and products; (3) to support fully the negotiating objectives set forth in section 1101(b) of this Act to eliminate or reduce substantially constraints on fair and open trade in agricultural commodities and products; (4) to use statutory authority to counter unfair foreign trade practices and to use all available means, including export promotion programs, and, if necessary, restrictions on United States imports of agricultural commodities and products, in order to encourage fair and open trade; and (5) to provide for increased representation of United States agricultural trade interests in the formulation of national fiscal and monetary policy affecting trade. SEC. 4103. PURPOSE. It is the purpose of this title— (1) to increase the effectiveness of the Department of Agriculture in agricultural trade policy formulation and implementation and in assisting United States agricultural producers to participate in international agricultural trade, by strengthening the operations of the Department of Agriculture; and (2) to improve the competitiveness of United States agricultural commodities and products in the world market. Subtitle B—Agricultural Trade Initiatives PART 1—GENERAL PROVISIONS 7 use 5211. President of U.S. SEC. 4201. LONG-TERM AGRICULTURAL TRADE STRATEGY REPORTS. (a) CONTENTS.—The Secretary of Agriculture shall prepare annually, and the President shall submit together with the budget for each fiscal year, a Long-Term Agricultural Trade Strategy Report establishing recommended policy goals for United States agricultural trade and exports, and recommended levels of spending on international activities of the Department of Agriculture, for 1-, 5-, and 10-fiscal year periods. In preparing each such report, the Secretary shall consult with the United States Trade Representative to ensure that the report is coordinated with the annual national trade policy Eigenda included in the annual report for the relevant fiscsd year prepared under section 163 of the Trade Act of 1974 (19 U.S.C. 2213). Each such report shall include— (1) findings with respect to trends in the comparative position of the United States and other countries in the export of PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1391 agricultural commodities and products, organized by major commodity group and including a comparative analysis of the cost of production of such commodities and products; (2) findings with respect to new developments in research conducted by other countries that may affect the competitiveness of United States agricultural commodities and products; (3) findings and recommendations with respect to the movement of United States agricultural commodities and products in nonmarket economies; (4) as appropriate, the agricultural trade goals for each agricultural commodity and value-added product produced in the United States for the period involved, expressed in both physical volume and monetary value; (5) recommended Federal policy and programs to meet such agricultural trade goals; (6) reconmiended levels of Federal spending on international programs and activities of the Department of Agriculture to meet such agricultural trade goals; (7) recommended levels of Federal spending on programs and activities of agencies other than the Department of Agriculture to meet such agricultural trade goals; and (8) recommended long-term strategies for growth in agricultural trade and exports— (A) taking into account United States competitiveness, trade n^otiations, and international monetary and exchange rate policies; and (B) including specific recommendations with respect to export enhancement p n ^ a m s (including credit programs and export payment-in-kind programs), market development activities, and foreign agricultural and economic development assistance activities needed to implement such strat^es. (b) TREATMENT AS ANNUAL BUDGET SUBMISSION.—Provisions of each Long-Term Agricultural Trade Strat^y Report that relate to recommended levels of spending on international activities of the Department of Agriculture for the upcoming fiscal year shall be treated as the President's annual budget submission to Congress for such activities for such fiscal year, and shall be submitted along with the budget request for other prc^rams of the Department of Agriculture for such fiscal year. (c) SUCCEEDING REPORTS.—^The Secretary of Agriculture, in each annual Long-Term Agricultural Trade Strategy Report, shall identify any recommendations in such report that might modify the long-term policy contained in any previous report. (d) RECOMMENDATIONS FOR CHANGES I N LAW.—^The President shall President of U.S. include in each annual budget submission recommendations for such changes in law as are required to meet the long-term goals established in the Report. SEC 4202. TECHNICAL ASSISTANCE IN TRADE NEGOTIATIONS. The Secretary of Agriculture shall provide technical services to the United States Trade Representative on matters pertaining to agricultural trade and with respect to international n^otiations on issues related to agricultural trade. 7 USC 5212. 102 STAT. 1392 7 use 5213. 7 use 5214. Reports. 7 use 5215. 7 use 5216. PUBLIC LAW 100-418—AUG. 23, 1988 SEC. 4203. JOINT DEVELOPMENT ASSISTANCE AGREEMENTS WITH CERTAIN TRADING PARTNERS. (a) DEVELOPMENT OF PLAN.—With respect to any country that has a substantial positive trade balance with the United States, the Secretary of Agriculture, in consultation with the Secretary of State and (through the Secretary of State) representatives of such country, may develop an appropriate plan under which that country would purchase United States agricultural commodities or products for use in development activities in developing countries. In developing such plan, the Secretary of Agriculture shall take into consideration the agricultural economy of such country, the nature and extent of such country's programs to assist developing countries, and other relevant factors. The Secretary of Agriculture shall submit each such plan to the President as soon as practicable. (b) AGREEMENT.—The President may enter into an agreement with any country that has a positive trade balance with the United States under which that country would purchase United States agricultural commodities or products for use in agreed-on development activities in developing countries. SEC. 4204. REORGANIZATION EVALUATION. The Secretary of Agriculture shall evaluate the reorganization proposal recommended by the National Commission on Agricultural Trade and Export Policy and other proposals to improve management of international trade activities of the Department of Agriculture. To assist the Secretary in the evaluation, the Secretary shall appoint a private sector advisory committee of not less than 4 members, who shall be appointed from among individuals representing farm and commodity organizations, market development cooperators, and agribusiness. Not later than April 30, 1989, the Secretary shall report the findings of the evaluation to Congress, together with the views and recommendations of the private sector advisory committee. SEC. 4205. CONTRACTING AUTHORITY TO EXPAND AGRICULTURAL EXPORT MARKETS. (a) IN GENERAL.—The Secretary of Agriculture may contract with individuals for services to be performed outside the United States as the Secretary determines necessary or appropriate for carr3dng out programs and activities to maintain, develop, or enhance export markets for United States agricultural commodities and products. 0>) NOT EMPLOYEES OF THE UNITED STATES.—Such individuals shall not be regarded as officers or employees of the United States. SEC. 4206. ESTABLISHMENT OF TRADE ASSISTANCE OFFICE. (a) ESTABUSHMENT WiTHIN THE FOREIGN AGRICULTURAL SERVICE.—The Secretary of Agriculture shall establish an office within the Foreign Agricultural Service to carry out the duties described in subsections (b) and (c) under the direction of the Administrator of the Foreign Agricultursd Service. 0>) PRIMARY RESPONSIBILITY.—The office established under subsection (a) shall provide trade assistance and information to persons who are interested in exporting United States agricultural commodities and products or who believe they have been injured by unfair trade practices with respect to trade in agricultural commodities and products. (c) DUTIES.—The office established under subsection (a) shall— PUBLIC LAW 100-418—AUG. 23,1988 102 STAT. 1393 (1) compile and make readily available international trade information, including information concerning trade practices carried out by other countries to promote the export of agricultural commodities and products, trade barriers imposed by other countries, unfair trade practices of other countries, and remedies under United States law that might be available to persons injured by unfair trade practices; and (2) provide information and assistance to persons interested in participating in programs carried out by the Foreign Agricultural Service, the Commodity Credit Corporation, and other agencies with respect to the international marketing and export of domestically produced agricultural commodities and products or who believe they have been injured by unfair trade practices of other countries with respect to trade in agricultural commodities and products. (d) REPORT.— (1) DEADUNE FOR SUBMISSION.—Not later than 60 days after the end of each fiscal year, the Administrator of the Foreign Agricultural Service shall submit a report described in paragraphs (2) and (3) to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate. (2) CONTENTS OF EACH REPORT.—Each such report shall describe— (A) the type of information that is currently aveilable through the office established by this section; and (B) the type of assistance provided to persons during the previous fiscal year. (3) ADDITIONAL CONTENTS FOR FIRST REPORT.—In the first report submitted under this section, the Administrator shall also— (A) provide an analysis of the information currently available concerning foreign agricultural trade practices and domestic agricultural trade promotion programs and the methods used to disseminate such information; (B) provide recommendations with respect to additional information and assistance that should be made available to interested persons; and (C) provide an analysis of the degree that overlapping information and reports concerning agricultural trade are prepared. PART 2—FOREIGN AGRICULTURAL SERVICE SEC. 4211. PERSONNEL OF THE SERVICE. (a) INCREASED LEVEL.—To ensure that the agricultural export programs of the United States are carried out in an effective manner, the authorized number of personnel for the Foreign Agricultural Service of the Department of Agriculture (hereinafter in this part referred to as the "Service") shall not be less than 900 fulltime employees during each of the fiscal years 1989 and 1990. Ot)) RANK OF FOREIGN AGRICULTURAL SERVICE OFFICERS IN FOREIGN MISSIONS.—Notwithstanding any other provision of law, the Secretary of State shall, upon the request of the Secretary of Agriculture, accord the diplomatic title of Minister-Counselor to the senior Service officer Eissigned to any United States mission abroad. 7 USC 5231. 102 STAT. 1394 PUBLIC LAW 100-418—AUG. 23, 1988 The number of Service officers holding such diplomatic title at any time may not exceed eight. 7 use 5232. SEC. 4212. AGRICULTURAL ATTACHE EDUCATIONAL PROGRAM. The Administrator of the Service (hereinafter in this part referred to as the "Administrator") shall establish a program within the Service that directs attaches of the Service who are reeissigned from abroad to the United States, and other personnel of the Service, to visit and consult with producers and exporters of agricultural commodities and products and State officials throughout the United States concerning various methods to increase exports of United States agricultural commodities and products. 7 use 5233. SEC. 4213. PERSONNEL RESOURCE TIME. (a) I N GENERAL.—In planning the overall allocation of personnel resource time of agricultural attaches of the Service, the Administrator shall ensure that the maximum quantity practicable of the overall personnel resource time of agricultural attaches of the Service be devoted to activities designed to increase markets for United States agricultural commodities and products, (b) REPORTS.—The Administrator shall submit reports to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate that describe the allocation of personnel resource time of agricultural attaches during the 1988 and 1989 fiscal years. The report for fiscal year 1988 shall be submitted not later than September 30, 1988, or 30 days after the date of the enactment of this Act, whichever is later. The report for fiscal year 1989 shall be submitted not later than September 30,1989. 7 use 5234. SEC. 4214. COOPERATOR ORGANIZATIONS. (a) SENSE OF CONGRESS.—It is the sense of Congress that the foreign market development cooperator program of the Service, and the activities of individual foreign market cooperator organizations, have been among the most successful and cost-effective means to expand United States agricultural exports. Congress affirms its support for the program and the activities of the cooperator organizations. The Administrator and the private sector should work together to ensure that the program, and the activities of cooperator organizations, are expanded in the future. 0?) COMMODITIES FOR CooPERATOR ORGANIZATIONS.—The Secretary of Agriculture may make available to cooperator organizations agricultural commodities owned by the Commodity Credit Corporation, for use by such cooperators in projects designed to expand markets for United States agricultural commodities and products. (c) RELATION TO FUNDS.—Commodities made available to cooperator organizations under this section shall be in addition to, and not in lieu of, funds appropriated for market development activities of such cooperator organizations. (d) CoNFUCTS OF INTEREST.—The Secretary shall take appropriate action to prevent conflicts of interest among cooperator organizations participating in the cooperator program. (e) EVALUATION.—It is the sense of Congress that the Secretary should establish a consistent, objective means for the evaluation of cooperator programs. Marketing. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1395 SEC. 4215. AUTHORIZATION OF ADDITIONAL APPROPRIATIONS. 7 u s e 5235. There are authorized to be appropriated for the Service, in addition to any sums otherwise authorized to be appropriated by any provision of law other than this section, $20,000,000 for each of the fiscal years 1988, 1989, and 1990 for market development activities, including— (1) expansion of the agricultural attache service; (2) expansion of international trade policy activities of the Service; (3) enhancement of the Service worldwide market information system; (4) increasing the number of trade shows and exhibitions conducted by the Service and upgrading the quality of United States representation at trade shows and exhibitions; and (5) developing markets for value-added beef, pork, and poultry products. Subtitle C—Existing Agricultural Trade Programs SEC. 4301. TRIGGERED MARKETING LOANS AND EXPORT ENHANCEMENT. President of U.S. 7 u s e 1466 note. (a) CERTIFICATION TO CONGRESS.—Notwithstanding any other provision of law, if, before January 1, 1990, a law has not been enacted in accordance with section 151 of the Trade Act of 1974 (19 U.S.C. 2191) that implements an agreement negotiated under the Uruguay round of multilateral trade negotiations conducted under the General Agreement on Tariffs and Trade (hereinafter in this section referred to as "GATT negotiations") concerning agricultural trade, the President, not later than 45 days after such date— (1) shgill submit a report to the Committee on Agriculture, the Reports. Committee on Foreign Affairs, and the Committee on Ways and Means of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry and the Committee on Finance of the Senate describing the status of the GATT negotiations concerning £igricultural trade, the progress that has been made to date in the negotiations, the general areas of disagreement, the anticipated date of completion of the negotiations, and the changes in domestic farm programs that are likely to be necessary on conclusion of the negotiations; and (2) shall certify to Congress whether or not significant progress has been made in the negotiations. (b) MARKETING LOAN.— (1) IMPLEMENTATION.—Except as provided in paragraph (2), if the President does not certify that significant progress has been made towards reaching a GATT agreement concerning agricultural trade, the President shall, not later than 60 days before the beginning of the marketing year for the 1990 crop of wheat, instruct the Secretary of Agriculture to permit producers to repay loans made under sections 107D(a), 105C(a), and 201(i) of the Agricultural Act of 1949 (7 U.S.C. 1445b-3(a), 1444e(a), and 1446(i)) for each of the 1990 crops of wheat, feed grains, and soybeans at a level that is the lesser of— (A) the lo£m level determined for each such crop; or (B) the prevailing world market price for each such crop, as determined by the Secretary. 102 STAT. 1396 PUBLIC LAW 100-418—AUG. 23, 1988 (2) WAIVER.—The President may waive the application of paragraph (1) by certif3dng to Congress that implementation of the marketing loan would harm further negotiations. (3) DISCONTINUANCE.—If, after the implementation of a marketing loan in accordance with paragraph (1), the President certifies to Congress that substantial progress is being made in the GATT negotiations and that continuation of the marketing loan program implemented in accordance with paragraph (1) would harm such progress, the President may instruct the Secretary of Agriculture to discontinue the marketing loan program. (c) EXPORT ENHANCEMENT.— (1) I N GENERAL.—Except as provided in paragraph (4), if the President exercises the authority to waive or discontinue the marketing loan program provided for in paragraph (2) or (3) of subsection Ot)), the President shall instruct the Secretary of Agriculture to make agricultural commodities and products acquired by the Commodity Credit Corporation equaling at least $2,000,000,000 m value available during the 1990 through 1992 fiscal years to United States exporters of domestically produced agricultural commodities and products for the purpose of making exports of such commodities and products available on the world market at competitive prices. (2) NoNDisPLACEMENT.—Commodities and products made available in accordemce with this subsection shall be in addition to, and not in lieu of, other commodities and products made available for the purpose of enhancing the export of United States commodities and products. (3) U S E OF COMMODITY CREDIT CORPORATION.—The Secretary Reports. of Agriculture may use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out this subsection. (4) EXCEPTION.—The President may waive the application of paragraph (1) by certifying to Congress that implementation of the export enhancement program provided for by this subsection would be a substantial impediment to achieving a successful agreement under the GATT. (5) DISCONTINUANCE.—If, after the implementation of paragraph (1), the President certifies to Congress that substantisd prepress is being made in the GATT negotiations and that continuation of the export enhancement program implemented in accordance with paragraph (1) would harm such progress, the President may, not before 60 days after the consultation required under subsection (d) with respect to such certification, instruct the Secretary of Agriculture to suspend the implementation of such program. (d) CONSULTATION.—^The President may not make a certification to Congress under this section unless the United States Trade Representative— (1) consults about the certification with— (A) the Committee on Agriculture, the Committee on Foreign Affairs, and the Committee on Ways and Means of the House of Representatives; and (B) the Committee on Agriculture, Nutrition, and Forestry and the Committee on Finance of the Senate; and (2) reports to the President the results of such consultation. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1397 SEC. 4302. PRICE SUPPORT PROGRAMS FOR SUNFLOWER SEEDS AND COTTONSEED. Loans. '^ USC 1446 note. (a) SUNFLOWER SEEDS.—^If producers are permitted to repay loans for the 1990 crop of soybeans under section 201(i) of the Agricultural Act of 1949 (7 U.S.C. 1446(i)) at a level that is less than the full amount of the loan pursuant to section 4301 of this Act, the Secretary shall support the price of sunflower seeds through loans and purchases for ihe 1990 crop of sunflowers in accordance with section 20ia) of the Agricultural Act of 1949. 0>) COTTONSEED.—If a producer is permitted to repay a loan for the 1990 crop of soybeans under section 201(i) of the Agricultural Act of 1949 (7 U.S.C. 1446(i)) at a level that is less than the full amount of the loan pursuant to section 4301 of this Act, the Secretary shall support the price of the 1990 crop of cottonseed at such level as the Secretary determines will cause cottonseed to compete on equal terms with soybeans on the market. The Secretary shall carry out this subsection using the fimds, facilities, and authorities of the Commodity Credit Corporation. (c) DISCONTINUANCE.—If the marketing loan program for the 1990 crop of soybeans is discontinued under section 43010>X3) of this Act, the Secretary shall discontinue the price support programs for sunflower seeds and cottonseed required by this section. SEC. 4303. MULTIYEAR AGREEMENTS UNDER THE FOOD FOR PROGRESS PROGRAM. Section 1110 of the Food Security Act of 1985 (7 U.S.C. 1736o) is amended— (1) by redesignating subsection (k) as subsection G); and (2) by inserting after subsection (j) the following: "(k) In carrying out this section, the President shall, on request President of U.S. and subject to the availability of commodities, approve agreements that provide for commodities to be made available for distribution or sale by recipient countries on a multiyear basis if the agreements otherwise meet the requirements of this section.". SEC. 4304. TARGETED EXPORT ASSISTANCE. (a) LEVEL OF PROGRAM.—Section 1124(a) of the Food Security Act of 1985 (7 U.S.C. 17368(a)) is amended— (1) in paragraph (1)— (A) by striking out "1988" and inserting in lieu thereof "1987"; and (B) by striking out "and" at the end; and (2) by stEiking out paragraph (2) and inserting in lieu thereof the following: "(2) for the fiscal year 1988, the Secretary shall use under this section not less than $215,0()0,000 of the funds of, or commodities owned by, the Corporation, except that the Secretary shall use funds or commodities of the (Corporation in excess of $110,000,000 only to the extent appropriations to reimburse the Corporation for such additional expenditures of funds or distribution of commodities are made available in advance to carry out this section; and "(3) for each of the fiscal years 1989 and 1990, the Secretary shall use under this section not less than $325,000,000 of the funds of, or commodities owned by, the Corporation.". (b) COUNTERVAILING DUTY ACTION.—Section 11240i>) of such Act is amended— 102 STAT. 1398 PUBLIC LAW 100-418—AUG. 23, 1988 (1) in paragraph (1), by striking out "Funds" and inserting in lieu thereof "Except as provided in paragraph (3), funds"; and (2) by adding at the end thereof the following new paragraph: "(3XA) Funds or commodities made available for use under this section may be used by the Secretary to assist organizations consisting of producers or processors of United States agricultural commodities in amounts necessary to compensate the organizations for reasonable expenses incurred in defending countervailing duty actions instituted after January 1, 1986, in foreign countries to offset the benefits of the agricultural programs provided for under the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.). In no event may such assistance exceed $500,000 for the defense of any one countervailing duty action. "(B) If the Secretary declines to make funds or commodities available under this pareigraph, the Secretary shall notify the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate of the reasons for declining to make the funds or commodities available.". 7 u s e 1736t SEC. 4305. EX^aRT CREDIT GUARANTEE PROGRAM. "°*^" It is the sense of Congress that, to the extent that the Commodity Credit Corporation makes a specified allocation of credit guarantees available under the export credit guarantee program referred to in section 1125 of the Food Security Act of 1985 (7 U.S.C. 1736t) for short-term credit extended to finance the export sales of United States agricultural commodities and products, such allocation should be made on a country-only basis and not on a commodity basis or a commodity and country basis. SEC. 4306. AGRICULTURAL EXPORT ENHANCEMENT PROGRAM. (a) PRIORITIES^.—Section 1127(b) of the Food Security Act of 1985 (7 U.S.C. 1736v(b)) is amended by striking out paragraph (2) and inserting in lieu thereof the following new paragraph: "(2) may consider for participation all interested United States exporters, processors, and users and interested foreign purchasers, and may give priority to sales to countries that have traditionally purchased United States agricultural commodities and products;". (b) LEVEL OF FUNDING.—Section 1127(i) of such Act is amended— (1) by striking out "1988" and inserting in lieu thereof "1990"; and (2) by striking out "$1,500,000,000" and inserting in lieu thereof "$2,500,000,000". SEC. 4307. AGRICULTURAL ATTACHE REPORTS. Subsection (b) of section 1132 of the Food Security Act of 1985 (7 U.S.C. 1736x(b)) is amended to read as follows: "(b) The Secretary shall— "(1) annually compile the information contained in such reports; "(2) in consultation with the agricultural technical advisory committees established under section 135(c) of the Trade Act of 1974 (19 U.S.C. 2155(c)), include in the compilation a priority ranking of those trade barriers identified in subsection (a) by commodity group; PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1399 "(3) include in the compilation a list of actions undeilaken to reduce or eliminate such trade barriers; and "(4) make the compilation available to Congress, the trade assistance office created under section 4602 of the Agricultural Competitiveness and Trade Act of 1988, the agricultural policy advisory committee, and other interested parties.". SEC. 4308. DAIRY EXPORT INCENTIVE PROGRAM. Parsigraphs (2) through (3) of section 153(d) of the Food Security Act of 1985 (15 U.S.C. 713a-14(d)) are amended to read as follows: "(2) If payments in commodities are authorized, such pa3rments shall be made through the issuance of generic certificates redeemable in commodities. "(3) If generic certificates issued in accordance with the program provided for by this section are exchanged for dairy products owned by the Commodity CJredit Corporation, the regulations issued by the Secretary shall ensure that— "(A) such dairy products, or an equal quantity of other dairy products, will be sold for export by the entity; and "(B) any such export sales by the entity— "(i) wiU be in addition to, and not in place of, export sales of dairy products that the eiitity would otherwise make under the program or in the absence of the pr(^ram; and "(ii) to the extent practicable, will not displace commercial export sales of United States dairy products by other exporters.". SEC. 4309. BARTER OF AGRICULTURAL COMMODITIES. 7 USC 1431 note. In reci^nition of the importance of barter programs in expanding agricultural trade, it is the sense of Congress tlmt the Secretary of Agriculture should expedite the implementation of section 416(d) of the Agricultural Act of 1949 (7 U.S.C. 1431(d)) and section 1167 of the Food Security Act of 1985 (7 U.S.C. 1727g note and 1736aa), relating to the barter of agricultural commodities. SEC. 4310. MINIMUM LEVEL OF FOOD ASSISTANCE. (a) ANNUAL MINIMUM.—It is the sense of dJongress that— (1) the United States should maintain its historic proportion of food assistance constituting one-third of all United States foreign economic assistance; and (2) accordingly, the total amount of food assistance made available to foreign countries under the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.) and section 416(b) of the Agricultural Act of 1949 (7 U.S.C. 1431(b)) should not be less than one-third of the total amount of foreign economic assistance provided for each fiscal year. (b) DEFINITION.—For purposes of this section, the term "foreign economic assistance" includes— (1) assistance under chapter 1 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.), the i ^ c u l t u r a l Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.), section 416(b) of the Agricultural Act of 1949 (7 U.S.C. 1431(b)), or any other law authorizing economic assistance for foreign countries; and (2) United States contributions to the International Bank for Reconstruction and Development, the International Development Association, the Inter-American Development Bank, the 7 USC 1691 note. 102 STAT. 1400 PUBLIC LAW 100-418—AUG. 23, 1988 Asian Development Bank, the African Development Bank, or any other multilateral development bank. 7 u s e 1691 note. SEC. 4311. FOOD AID AND MARKET DEVELOPMENT. President of U.S. (a) PoucY STATEMENT.—It is the policy of the United States to use food aid and agriculturally-related foreign economic assistance programs more effectively to develop markets for United States agricultural commodities and products. (b) REQUIREMENT.—The President (or, as appropriate, the Secretary of Agriculture) shall encourage recipient countries under food Eissistance agreements entered into under any program administered by the Secretary to agree to give preference to United States food and food products in future food purchases. Subtitle D—Wood and Wood Products SEC. 4401. DEVELOPING MARKETS FOR WOOD AND WOOD PRODUCTS UNDER PUBLIC LAW 480. Section 104(b)(1) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1704(bXl)) is amended by inserting "(including wood and processed wood products of the United States)" after "agricultural commodities" the first place it appears. SEC. 4402. DEVELOPING MARKETS FOR WOOD AND WOOD PRODUCTS UNDER THE SHORT-TERM AND INTERMEDIATE-TERM EXPORT CREDIT GUARANTEE PROGRAMS. (a) SHORT-TERM EXPORT CREDIT GUARANTEES.—Section 1125 of the Food Security Act of 1985 (7 U.S.C. 1736t) is amended— (1) in subsection Qo), by inserting ", including wood and processed wood products" after "agricultural commodities and the products4;hereof'; and (2) by adding at the end thereof the following: "(d) For the purpose of this section, the term 'wood and processed wood products' includes but is not limited to logs, lumber (boards, timber, millwork, molding, flooring, and siding), veneer, panel products (plywood, particle board, and fiberboard), utility and telephone poles, other poles and posts, railroad ties, wood pulp, and wood chips.". (b) INTERMEDIATE-TERM EXPORT CREDIT.—Section 4(bXl) of the Food for Peace Act of 1966 (7 U.S.C. 1707a(bXl)) is amended by adding at the end thereof the following: "For the purpose of this paragraph, the term 'gigricultural commodities' includes wood and processed wood products, as defined in section 1125(d) of the Food Security Act of 1985 (7 U.S.C. 1736t(d)).". SEC. 4403. COOPERATIVE NATIONAL FOREST PRODUCTS MARKETING PROGRAM. 16 use 2112. The Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2101 et seq.) is amended by adding at the end thereof the following: "SEC. 15. COOPERATIVE NATIONAL FOREST PRODUCTS MARKETING PRbGRAM. "(a) FINDINGS AND PURPOSES.— "(1) FINDINGS.—Congress finds that— PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1401 "(A) the health and vitality of the domestic forest products industry is important to the well-being of the economy of the United States; "(B) the domestic forest products industry has a significant potential for expansion in both domestic and foreign markets; "(C) many small-sized to medium-sized forest products firms lack the tools that would enable them to meet the increasing challenge of foreign competition in domestic and foreign markets; and "(D) a new cooperative forest products marketing program will improve the competitiveness of the United States forest products industry. "(2) PURPOSES.—The purposes of this section are to— "(A) provide direct technical assistance to the United States forest products industry to improve marketing activities; "(B) provide cost-share grants to States to support State Grants. State and local and regional forest products marketing p n ^ a m s ; and "(C) target assistance to small-sized and medium-sized governments. producers of solid wood and processed wood products, including pulp. Grants. "(b) PROGRAM AUTHORITY.— "(1) IN GENERAL.—The Secretary shall establish a cooperative State and local national forest products marketing program under this Act that governments. provides— "(A) technical assistance to States, landowners, and small-sized to medium-sized forest products firms on ways to improve domestic and foreign markets for forest products; and "(B) grants of financial assistance with matching requirements to the States to assist in State and regional forest products marketing efforts targeted to aid small-sized to medium-sized forest products firms and private, nonindustrial forest landowners. "(2) INTERSTATE COOPERATIVE AGREEMENTS.—Grant agree- ments shall encourage the establishment of interstate cooperative agreements by the States for the purpose of promoting the development of domestic and foreign markets for forest products. "(c) LIMITATIONS.— "(1) COOPERATION WITH OTHER FEDERAL AGENCIES.—In carrying out this section, the Secretary shall cooperate with Federal departments and agencies to avoid the dupUcation of efibrts and to increase program efficiency. "(2) DOMESTIC PROGRAM.—The program authorized under this section shall be carried out within the United States and not be extended to Department of Agriculture activities in foreign countries. "(d) AUTHORIZATION FOR APPROPRIATIONS.—^There are authorized to be appropriated $5,000,000 for each of the fiscal years 1988 through 1991, to carry out this section. "(e) PROGRAM REPORT.—The Secretary shall report to (Congress annually on the activities taken under the marketing program established under this section. A final report including recommendations for program changes and the need and desirability of 102 STAT. 1402 PUBLIC LAW 100-418—AUG. 23, 1988 the reauthorization of this authority, and required levels of funding, shall be submitted to Congress not later than September 30, 1990.". 7 u s e 1736t SEC. 4404. USE OF DEPARTMENT OF AGRICULTURE PROGRAMS. The Secretary of Agriculture shall actively use Department of Agriculture concessional programs and export credit guarantee programs to promote the export of wood and processed wood products. Subtitle E—Studies and Reports SEC. 4501. STUDY OF CANADIAN WHEAT IMPORT LICENSING REQUIREMENTS. (a) FINDINGS.—Congress finds that— (1) Canadian importers of wheat or products containing a minimum of 25 percent wheat (except packaged wheat products for retail sale) from the United States must obtain import licenses from the Canadian Wheat Board; (2) the Canadian Wheat Board requires such importers of United States wheat and wheat products to prove that the wheat or wheat products to be imported are not readily available in Canada before issuance of an import license, and therefore, for all practical purposes, such licenses are not granted by the Canadian Wheat Board; (3) the licensing requirements of the Canadian Wheat Board's import licensing program result in a trade barrier on the importation of United States wheat and wheat products; and (4) Canada is a member of the General Agreement on Tariffs and Trade and, under such agreement, member countries should, in general, eliminate import licensing programs that operate as nontariff trade barriers. 0)) STUDY.—The Secretary of Agriculture shall conduct a study of the Canadian Wheat Board's import licensing program to— (1) assess the effect of the Canadian Wheat Board's import licensing program referred to in subsection (a) on wheat producers, processors, and exporters in the United States; and (2) determine— (A) the nature and extent of the licensing requirements of the Canadian Wheat Board's import licensing program; and (B) the estimated effect of the Canadian Wheat Board's import licensing program in reducing exports of United States wheat and wheat products to Canada. (c) SUBMISSION OF RESULTS.—Not later than 90 days after the date of enactment of this Act, the Secretary shall submit the results of the study conducted under subsection (b) to the United States Trade Representative. (d) CONSULTATION WITH CONGRESS.—Not later than 90 days after the results of the study are submitted, the Secretary and the United States Trade Representative shall consult with the Committee on Agriculture and the Committee on Ways and Means of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry and the Committee on Finance of the Senate on the status of efforts to negotiate the elimination of such Canadian licensing requirements. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1403 SEC. 4502. IMPORT INVENTORY. 7 USC 626. (a) COMPILATION AND REPORT ON IMPORTS.—The Secretary of Agriculture, in consultation with the Secretary of Commerce, the International Trade Commission, the United States Trade Representative, and the heads of all other appropriate Federal agencies, shall compile and report to the public statistics on the total value and quantity of imported raw and processed agricultural products. The report shall be limited to those statistics that such agencies already obtain for other purposes. (b) COMPILATION AND REPORT ON CONSUMPTION.—The Secretary Public shall compile and report to the public data on the total quantity of information. production and consumption of domestically produced raw and processed agricultural products. (c) ISSUING OF DATA.—The reports required by this section shall be made in a format that correlates statistics for the quantity and value of imported agricultural products to the production and consumption of domestic agricultural products. The Secretary shall issue such reports on an annual basis, with the first report required not later than 1 year after the date of enactment of this Act. SEC. 4503. STUDY RELATING TO HONEY. (a) STUDY.—The Secretary of Agriculture shall conduct a study to determine the effect of imported honey on United States honey producers, the availability of honey bee pollination within the United States, and whether there is reason to believe imports of honey tend to interfere with or render ineffective the honey price support program of the Department of Agriculture. (b) REPORT.—Not later than 90 days after the date of the enactment of this Act, the Secretary shall report the results of such study to the Committee on Agriculture and the Committee on Ways and Means of the House of Representatives and to the Committee on Agriculture, Nutrition, and Forestry and the Committee on Finance of the Senate. SEC. 4504. STUDY OF DAIRY IMPORT QUOTAS. (a) STUDY.—Not later than 180 days after the date of enactment of this Act, the Secretary of Agriculture shall conduct a study to determine whether, and to what extent, the price support program for milk established under Section 201(d) of the Agricultural Act of 1949 (7 U.S.C. 1446(d)) would be affected by a reduction in, or elimination of, limitations imposed on the importation of certain dairy products under section 22 of the Agricultural Adjustment Act (7 U.S.C. 624), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, £is a result of multilateral trade negotiations, including negotiations under the General Agreement on Tariffs and Trade. In conducting this study, the Secretary shall assess the likelihood of other nations' agreeing to reduce or eliminate their domestic dairy price stabilization, export subsidization, or import control programs in such multilateral negotiations. (b) REPORT.—The Secretary shall submit a report describing the results of the study, together with any recommendations, to the Committee on Agriculture and the Committee on Ways and Means of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry and the Committee on Finance of the Senate. 102 STAT. 1404 PUBLIC LAW 100-418—AUG. 23, 1988 SEC. 4505. REPORT ON INTERMEDIATE EXPORT CREDIT. Marketing. Animals. 21 u s e 1401 note. Pests and pesticides. Drugs and drug abuse. Pests and pesticides. Drugs and drug abuse. Not later than 180 davs after the date of the enactment of this Act, the Secretary of Agriculture shall submit a report to the Committee on Agriculture and the Committee on Foreign Affairs of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestiy of the Senate, on the use of authorities established under section 4 of the Food for Peace Act of 1966 (7 U.S.C. 1707a), the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.), section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431), and the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et seq.), to provide intermediate credit financing and other trade assistance for the establishment of facilities in importing countries— (1) to improve the handling, marketing, processing, storage, and distribution of imported agricultural commodities and products; (2) to increase livestock production in order to enhance the demand for United States feed grains; and (3) to increase markets for United States livestock and livestock products. SEC. 4506. IMPORTED MEAT, POULTRY PRODUCTS, EGGS, AND EGG PRODUCTS. (a) REPORT.—Not later than 90 days after the date of the enactment of this Act, the Secretary of Agriculture shall submit a report to Congress— (1) specifjring the planned distribution, in fiscal years 1988 and 1989, of the resources of the Department of Agriculture available for sampling imported covered products to ensure compliance with the requirements of the Federal Meat Insi)ection Act (21 U.S.C. 601 et seq.), the Poultry Products Inspection Act (21 U.S.C. 451 et seq.), and the Egg Products Inspection Act (21 U.S.C. 1031 et seq.) that govern the level of residues of pesticides, drugs, and other products permitted in or on such products; (2) describing current methods used by the Secretary to enforce the requirements of such Acts with respect to the level of residues of pesticides, drugs, and other products permitted in or on such products; (3) responding to the audit report of the Inspector General of the Department of Agriculture, Number 38002—2—hy, dated January 14,1987; (4) providing a summary with respect to the importation of covered products during fiscal years 1987 and 1988 that specifies— (A) the number of samples of each such product taken during each such fiscal year in carr3ring out the requirements described in paragraph (1); and (B) for each violation of such requirements during each such fiscal year— (i) the covered products with respect to which such violation occurred; (ii) the residue in or on such product in violation of such requirements; (iii) the country exporting such product; (iv) the actions taken in response to such violation and the reasons for such actions; and PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1405 (v) the level of testing conducted by the countries exporting such products; (5) describing any research conducted by the Secretary to Research and develop improved methods to detect residues subject to such development. requirements in or on covered products; £ind (6) providing any recommendations the Secretary considers appropriate for legislation to add or modify penalties for violations of laws, regulations, and other enforcement requirements governing the level of residues that are permitted in or on imported covered products. (b) REVISION.—Not later than November 15,1989, the Secretary of Reports. Agriculture shall revise, as necessary, the report prepared under subsection (a) and submit the revision to Congress. (c) DEFINITION.—As used in this section, the term "covered products" means meat, poultry products, eggs, and egg products. SEC. 4507. STUDY OF CIRCUMVENTION OF AGRICULTURAL QUOTAS. (a) IN GENERAL.—Not later than 180 days after the date of enactment of this Act, the Comptroller General of the United States shall conduct a study with respect to— (1) whether articles containing dairy products (including chocolate in blocks of at least 10 pounds and other such products) are being imported into the United States in such a manner or in such quantities as to circumvent or avoid the limitations imposed on imports of dairy products under section 22 of the Agricultural Adjustment Act (7 U.S.C. 624), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937; and (2) whether products containing refined sugar are being imported into the United States in such a manner or in such quantities as to circumvent or avoid the limitations imposed on imports of refined sugar and sugar containing products imposed under Federal law. (b) REQUIREMENTS.—In conducting the study required under subsection (a), the Comptroller General shall investigate— (1) the efforts undertaken by the United States Customs Service in the enforcement of the existing quantitative limitations described in subsection (a); (2) the change in the composition, volume, and pattern of imports containing sugar and imports containing dairy products subsequent to the initial imposition of the quantitative limitations; (3) the effectiveness of section 22 of the Agricultural Adjustment Act (7 U.S.C. 624), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, in preventing the circumvention or avoidance of the quantitative limitations; and (4) the use of United States foreign trade zones to circumvent the quantitative limitations. (c) REPORT.—On completion of the study required by this section, the Comptroller General shall report the results of the study to the Committee on Agriculture and the Committee on Ways and Means of the House of Representatives, and the Committee on Agriculture, Nutrition, and Forestry and the Committee on Finance of the Senate. Dairy products. Dairy products. 102 STAT. 1406 PUBLIC LAW 100-418—AUG. 23, 1988 SEC. 4508. STUDY OF LAMB MEAT IMPORTS. (a) STUDY.—The Secretary of Agriculture shall conduct a study of the market for lamb meat products in the United States, focusing on production, demand, rate of return on investment, marketing and trends with respect to the level of imports of live lamb and lamb meat products, and the effects of such imports on the production of lamb meat in the United States. Ob) REPORT.—Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to the Committee on Ways and Means and the Committee on Agriculture of the House of Representatives and the Committee on Finance and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report setting forth the results of such study. If appropriate, the report should include proposals on ways to bring about a long-term increase in per capita consumption of lamb meat products and ways to encourage a more profitable and productive domestic industry to ensure a plentiful and affordable supply of lamb meat. SEC. 4509. ROSE STUDY. (a) STUDY.—Not later than 240 days after the date of enactment of this Act, the United States International Trade Commission shall, pursuant to section 332 of the Tariff Act of 1930 (19 U.S.C. 1332), complete a study with respect to— (1) competitive factors affecting the domestic rose-growing industry, including competition from imports; (2) the effect that the European Community's tariff rate for imported roses has on world trade of roses; and (3) the extent to which unfair trade practices and foreign barriers to trade are impeding the marketing abroad of domestically produced roses. (b) REPORT.—The Commission shall report the results of the study conducted in accordance with subsection (a) as soon as the study is completed to— (1) the Committee on Agriculture and the Committee on Ways and Means of the House of Representatives; (2) the Committee on Agriculture, Nutrition, and Forestry and the Committee on Finance of the Senate; (3) the United States Trade Representative; (4) the Secretary of Commerce; and (5) the Secretary of Agriculture. (c) REVIEW.—It is the sense of Congress that the United States Trade Representative, the Secretary of Commerce, and the Secretary of Agriculture, should use all available remedies, programs, and policies within their respective jurisdictions to eissist the domestic rose industry to maintain and enhance its ability to compete in the domestic and world market for roses if, after their review of the study and report required by this section, such officials determine that such action is appropriate to counter any adverse effects on the domestic rose industry caused by unfair trade practices of foreign competitors. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1407 Subtitle F—Miscellaneous Agricultural Provisions SEC. 4601. ALLOCATION OF CERTAIN MILK. Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended by adding at the end the following: "(KXi) Notwithstanding any other provision of law, milk produced by dairies— "(I) owned or controlled by foreign persons; and "(II) financed by or with the use of bonds the interest on Securities. which is exempt from Federal income tax under section 103 of Taxes. the Internal Revenue Code of 1986; shall be treated as other-source milk, and shall be allocated as milk received from producer-handlers for the purposes of classifying producer milk, under the milk marketing program established under this Act. For the purposes of this subparagraph, the term 'foreign person' has the meaning given such term under section 9(3) of the Agricultural Foreign Investment Disclosure Act of 1978 (7 U.S.C. 3508(3)). "(ii) The Secretary of Agriculture shall prescribe regulations to Regulations. carry out this subparagraph. "(iii) This subparagraph shall not apply with respect to any dairy that began operation before May 6,1986.'. SEC. 4602. PAID ADVERTISING FOR FLORIDA-GROWN UNDER MARKETNG ORDERS. STRAWBERRIES The first proviso of section 8c(6)(I) of the Agricultural Adjustment Act (7 U.S.C. 608c(6)(D), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended by striking out "or tomatoes" and inserting in lieu thereof "tomatoes, or Floridagrown strawberries,". SEC. 4603. APPLICATION OF MARKETNG ORDERS TO IMPORTS. Section 8e of the Agricultural Adjustment Act (7 U.S.C. 608e-l), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, is amended— (1) by inserting "(a)" at the beginning of the first sentence; and (2) by adding at the end thereof the following new subsection: "(bXl) The Secretary may provide for a period of time (not to exceed 35 days) in addition to the period of time covered by a marketing order during which the marketing order requirements would be in effect for a particular commodity during any year if the Secretary determines that such additional period of time is necessary— "(A) to effectuate the purposes of this Act; and "(B) to prevent the circumvention of the grade, size, quality, or maturity standards of a seasonal marketing order applicable to a commodity produced in the United States by imports of such commodity. "(2) In making the determination required by paragraph (1), the Secretary, through notice and comment procedures, shall consider— "(A) to what extent, during the previous year, imports of a H | commodity that did not meet the requirements of a marketing 102 STAT. 1408 PUBLIC LAW 100-418—AUG. 23, 1988 order applicable to such commodity were marketed in the United States during the period that such marketing order requirements were in effect for available domestic commodities (or would have been marketed during such time if not for any additional period established by the Secretary): "(B) if the importation into the United States of such commodity did, or was likely to, circumvent the grade, size, quality or maturity standards of a seasonal marketing order applicable to such commodity produced in the United States; and "(C) the availability and price of commodities of the variety covered by the marketing order during any additional period the marketing order requirements are to be in effect. "(3) An additional period established by the Secretary in accordance with this subsection shall be— "(A) announced not later than 30 days before the date such additional period is to be in effect; and "(B) reviewed by the Secretary on request, through notice and comment procedures, at least every 3 years in order to determine if the additional period is still needed to prevent circumvention of the seasonal marketing order by imported commodities. "(4) For the purposes of carrying out this subsection, the Secretary is authorized to make such reasonable inspections as may be necessary.". SEC. 4604. RECIPROCAL MEAT INSPECTION REQUIREMENT. Safety. President of U.S. (a) IN GENERAL.—Section 20 of the Federal Meat Inspection Act (21 U.S.C. 620) is amended by adding at the end thereof the following new subsection: "(h)(1) As used in this subsection: "(A) The term 'meat articles' means carcasses, meat and meat food products of cattle, sheep, swine, goats, horses, mules, or other equines, that are capable of use as human food. "(B) The term 'standards* means inspection, building construction, sanitary, quality, species verification, residue, and other standards that are applicable to meat articles. "(2) On request of the Committee on Agriculture or the Committee on Ways and Means of the House of Representatives or the Committee on Agriculture, Nutrition, and Forestry or the Committee on Finance of the Senate, or at the initiative of the Secretary, the Secretary shall, as soon as practicable, determine whether a particular foreign country applies standards for the importation of meat articles from the United States that are not related to public health concerns about end-product quality that can be substantiated by reliable analj^ical methods. "(3) If the Secretary determines that a foreign country applies standards described in paragraph (2)— "(A) the Secretary shall consult with the United States Trade Representative; and "(B) within 30 days after the determination of the Secretary under paragraph (2), the Secretary and the United States Trade Representative shall recommend to the President whether action should be taken under paragraph (4). "(4) Within 30 days after receiving a recommendation for action under paragraph (3), the President shall, if and for such time as the President considers appropriate, prohibit imports into the United PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1409 States of any meat articles produced in such foreign country unless it is determined that the meat articles produced in that country meet the standards applicable to meat articles in commerce within the United States. "(5) The action authorized under paragraph (4) may be used instead of, or in addition to, any other action taken under any other law.". (b) REPORTS.—Section 20(e) of such Act is amended— 21 use 620. (1) by striking out "and" at the end of paragraph (4); (2) by striking out the period at the end of paragraph (5) and inserting in lieu thereof "; and"; and (3) by adding at the end thereof the following new paragraph: "(6) the name of each foreign country that applies standards for the importation of meat articles from the United States that are described in subsection (h)(2).". SEC. 4605. STUDY OF INTERNATIONAL MARKETING IN LAND GRANT COLLEGES AND UNIVERSITIES. It is the sense of Congress that— (1) land grant colleges and universities (as defined in section 1404(10) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3103(10)) should encourage the study and career objective of international marketing of agricultural commodities and products; (2) because marketing complements production, international agricultural marketing specialists are needed in a globally competitive world; and (3) enhanced foreign marketing of United States agricultural commodities and products will help relieve stress in the rural economy. SEC. 4606. INTERNATIONAL TRADE IN EGGS AND EGG PRODUCTS. (a) FINDINGS.—Congress finds that— (1) the system of basic and variable levies of the European Community has severely restricted the export of United States eggs and egg products to European Community member countries; (2) export subsidies of the Europesm Community have caused displacement of United States egg exports in international markete; and (3) the Secretary of Agriculture is in the process of certifying the Netherland's inspection procedures for egg products for the purpose of importation into the United States of egg products of the Netherlands. Ot)) SENSE OF CONGRESS.—It is the sense of Congress that the United States Trade Representative should enter into negotiations with the European Community concerning— (1) duties, tariffs, and other means used by the European Community to limit the access of United States eggs and egg products to European Community markets; and (2) European Community export subsidies that have had the effect of excluding United States eggs and egg products from other world markets. SEC. 4607. UNITED STATES ACCESS TO THE KOREAN BEEF MARKET. (a) FINDINGS.—Congress finds that— 102 STAT. 1410 PUBLIC LAW 100-418—AUG. 23, 1988 (1) the 1986 United States trade deficit with the Republic of Korea was $7,600,000,000; (2) the Republic of Korea has banned beef imports since May 1985; (3) this beef import ban is in contravention of Korea's obligations under the General Agreement on Tariffs and Trade and impairs United States rights under such agreement; (4) Korea imposes an unreasonably high 20 percent ad valorem tariff on meat products; and (5) if the Korean beef market were liberalized, the United States, due to comparative advantage, could supply a significant portion of the Korean market for beef, thereby increasing profit opportunities for the United States beef industry while benefiting Korean consumers. Qy) SENSE OP CONGRESS.—It is the sense of Congress that— (1) the Republic of Korea should take immediate action to fulfill its obligations under the General Agreement on Tariffs and Trade and permit access to its market for United States beef; (2) the United States should aggressively pursue negotiations to gain access to the Korean market for United States beef; (3) such n^otiations, in addition to elimination of the beef import ban, should address the high tariffs set by the Republic of Korea and the means by which imported beef is distributed in Korea; and (4) if the Republic of Korea does not show clear evidence that it is engaging in meaningfid liberalization of its market for United States beef, the United States should use all available and appropriate means to encourage the Republic of Korea to open its market to United States beef imports. SEC. 4608. UNITED STATES MARKETS. ACCESS TO JAPANESE AGRICULTURAL (a) FINDINGS.—Congress finds that— (1) the United States requested establishment of a panel pursuant to Article XXIQ of the General Agreement on Tariffs and Trade (hereinafter in this section referred to as "GATT") to examine Japanese import restrictions on 12 categories of agricultural products; (2) the GATT panel found that Japanese quantitative restrictions on 10 of the 12 product cat^ories are inconsistent with Article XI of the GATT and recommended that Japan eliminate them or otherwise take action to bring them into conformity with the GATT; and (3) the rationale behind the GATT panel findiiig can also be applied to other restrictions that Japan maintains on imports from the United States, including— (A) a virtual ban on imports of United States rice; (B) a very restrictive quota on imports of United States beef; and (Q high tariffs and restrictive quotas on imports of United States citrus. (b) SENSE OF CONGBESS.—It is the sense of Congress that— (1) the Government of Japan should immediately take actions to comply with the findings of the GATT panel report; (2) the Government of Japan should immediately liberalize its trade policies by lowering high tariffs and removing quotas on PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1411 agricultural imports from the United States, including those imposed on rice, beef, and citrus, in order to avoid any damage to the close relations between Japan and the United States; and (3) the United States should continue efforts to persuade the Government of Japan to rehiove its trade barriers. SEC. 4609. SENSE OF CONGRESS RELATING TO SECTION 22. 7 u s e 624 note. It is the sense of Congress that— (1) the amounts of assessments collected under the no-net-cost tobacco program can be an indicator of import injury and material interference with the tobacco price support program administered by the Secretary of Agriculture; and (2) for purposes of any investigation conducted under section 22(a) of the Agricultural Adjustment Act (7 U.S.C. 624(a)), reenacted with amendments by the Agricultural Marketing Agreement Act of 1937, with respect to tobacco, or articles containing tobacco, imported into the United States, the International Trade Commission should take into account, as if they are costs to the Federal government, contributions and assessments imposed under sections 106A and 106B of the Agricultural Act of 1949 (7 U.S.C. 1445-1 and 1445-2) in determining whether such imported tobacco or articles containing tobacco materially interfere with the tobacco price support program carried out by the Secretary o^ Agriculture. SEC. 4610. TECHNICAL CORRECTIONS TO THE AGRICULTURAL AID AND TRADE MISSION PORTION OF PUBLIC LAW 100-202. (a) SHORT TITLE FOR AGRICULTURAL AID AND TRADE MISSIONS ACT.—That portion of the joint resolution entitled "Joint resolution making further continuing appropriations for the fiscal year 1988, and for other purposes" approved December 22, 1987, under the heading "Agricultural Aid and Trade Missions Act" is amended by adding at the end the following: "SEC. 16. SHORT TITLE. "Section 1 through this section under the heading 'Agricultural Aid and Trade Missions Act' may be cited as the 'Agricultural Aid and Trade Missions Act'." . (b) CORRECTION OF INTERNAL REFERENCES.—Sections 1 through 7 of that portion of such joint resolution are each amended by striking out ' chapter" each place it appears and inserting "Act" in lieu thereof. (c) EuMiNATiON OF SUPERFLUOUS CATCHUNE.—That portion of such joint resolution is amended by striking out "Subtitle E—Public Law 480 and Related Provisions". (d) CORRECTION OF CROSS REFERENCE.—Section 13 of that portion of such joint resolution is sunended by striking out "section 655 of this Act" and inserting "section 12" in lieu thereof. 3, . Subtitle G—Pesticide Monitoring Improvements SEC. 4701. SHORT TITLE. This subtitle may be cited as the "Pesticide Monitoring Improvements Act of 1988". Agricultural Aid and Trade Missions Act. 7 u s e 1691 note. 7 u s e 1736bb, 1736bb-3— 1736bb-6. 101 Stat. 1329-447. 7 u s e 1726. Pesticide Monitoring Improvements Act of 1988. 21 u s e 1401 note. 102 STAT. 1412 21 use 1401. PUBLIC LAW 100-418—AUG. 23, 1988 SEC. 4702. PESTICIDE MONITORING AND ENFORCEMENT INFORMATION. (a) DATA MANAGEMENT SYSTEMS.— Safety. Safety. ';«> : \l '"• .: (1) Not later than 480 days after the date of the enactment of this Act, the Secretary of Health and Human Services shall place in effect computerized data management systems for the Food and Drug Administration under which the Administration will— (A) record, summarize, and evaluate the results of its program for monitoring food products for pesticide residues, (B) identify gaps in its pesticide monitoring program in the monitoring of (i) pesticides, (ii) food products, and (iii) food from specific countries and from domestic sources. (C) detect trends in the presence of pesticide residues in food products and identify public health problems emerging from the occurrence of pesticide residues in food products, (D) focus its testing resources for monitoring pesticide residues in food on detecting those residues which pose a public health concern, (E) prepare summaries of the information listed in subsection (b), and (F) provide information to assist the Environmental Protection Agency in carrying out its responsibilities under the Federal Insecticide, Fungicide, and Rodenticide Act and the Federal Food, Drug, and Cosmetic Act. (2) As soon as practicable, the Secretary of Health and Human Services shall develop a means to enable the computerized data management systems placed into effect under paragraph (1) to make the summary described in subsection (c). (3XA) Paragraph (1) does not limit the authority of the Food and Drug Administration to— (i) use the computerized data management systems placed in effect under paragraph (1), or (ii) develop additional data management systems, to facilitate the regulation of any substance or product covered under the requirements of the Federal Food, Drug, and Cosmetic Act. (B) In placing into effect the computerized data management systems under paragraph (1) and in carr3dng out paragraph (2), the Secretary shall comply with applicable regulations governing computer system design and procurement. 0)) INFORMATION.—The Food and Drug Administration shall use the computerized data management systems placed into effect under subsection (aXD to prepare a summary of— (1) information on— (A) the types of imported and domestically produced food products analyzed for compliance with the requirements of the Federal Food, Drug, and Cosmetic Act regarding the presence of pesticide residues, (B) the number of samples of each such food product analyzed for such compliance by country of origin, (C) the pesticide residues which may be detected using the testing methods employed, (D) the pesticide residues in such food detected and the •:-• ^. >' levels detected, cvs^^x «.tj cij f- PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1413 (E) the compliance status of each sample of such food tested and the violation rate for each country-product combination, and (F) the action taken with respect to each sample of such food found to be in violation of the Federal Food, Drug, and Cosmetic Act and its ultimate disposition, and (2) information on— (A) the country of origin of each imported food product referred to in paragraph (IXA), and (B) the United States district of entry for each such imported food product. (c) VOLUME DATA.—The Food and Drug Administration shall use the computerized data management systems placed into effect under subsection (aXD to summarize the volume of each tjTpe of food product subject to the requirements of the Federal Food, Drug, and Cosmetic Act which is imported into the United States and which has an entry value which exceeds an amount established by the Secretary of Health and Human Services. The summary shall be made by country of origin and district of entry. Information with respect to volumes of food products to be included in the summary shall, to the extent feasible, be obtained from data bases of other Federal agencies. (d) COMPILATION.—Not later than 90 days after the expiration of 1 year after the data management systems are placed into effect under subsection (a) and annually thereafter, the Secretary of Health and Human Services shall compile a summary of the information described in subsection (b) with respect to the previous year. When the Food and Drug Administration is able to make summaries under subsection (c), the Secretary shall include in the compilation under the preceding sentence a compilation of the information described in subsection (c). Compilations under this subsection shall be made available to Federal and State agencies and other interested persons. SEC. 4703. FOREIGN PESTICIDE INFORMATION. (a) COOPERATIVE AGREEMENTS.—The Secretary of Health 21 USC 1402. and Human Services shall enter into cooperative agreements with the governments of the countries which are the major sources of food imports into the United States subject to pesticide residue monitoring by the Food and Drug Administration for the purpose of improving the ability of the Food and Drug Administration to sissure compliance with the pesticide tolerance requirements of the Federal Food, Drug, and Cosmetic Act with regard to imported food. 0)) INFORMATION ACTIVITIES.— (1) The cooperative agreements entered into under subsection (a) with governments of foreign countries shall specify the action to be taken by the parties to the agreements to accomplish the purpose described in subsection (a), including the means by which the governments of the foreign countries will provide to the Secretary of Health and Human Services current information identifying each of the pesticides used in the production, transportation, and storage of food products imported from production regions of such countries into the United States. (2) In the case of a foreign country with which the Secretary is unable to enter into an agreement under subsection (a) or for which the information provided under paragraph (1) is insuffi- 102 STAT. 1414 PUBLIC LAW 100-418—AUG. 23, 1988 cient to assure an effective pesticide monitoring program, the Secretary shall, to the extent practicable, obtain the information described in paragraph (1) with respect to such country from other Federal or international agencies or private sources. (3) The Secretary of Health and Human Services shall assure that appropriate offices of the Food and Drug Administration which are engaged in the monitoring of imported food for pesticide residues receive the information obtained under paragraph (1) or (2). (4) The Secretary of Health and Human Services shall make available any information obtained under paragraph (1) or (2) to State agencies engaged in the monitoring of imported food for pesticide residues other than information obtained from private sources the disclosure of which to such agencies is restricted. (c) COORDINATION WITH OTHER AGENCIES.—The Secretary State and local governments. 21 u s e 1403. Reports. of Health and Human Services shall— (1) notify in writing the Department of Agriculture, the Environmental Protection Agency, and the Department of State at the initiation of negotiations with a foreign country to develop a cooperative agreement under subsection (a); and (2) coordinate the activities of the Department of Health and Human Services with the activities of those departments and agencies, as appropriate, during the course of such negotiations. (d) REPORT.—Not later than one year after the date of the enactment of this Act, the Secretary of Health and Human Services shall report to the Committee on Agriculture, Nutrition, and Forestry and the Committee on Labor and Human Resources of the Senate and the House of Representatives on the activities undertaken by the Secretary to implement this section. The report shall be made available to appropriate Federal and State agencies and to interested persons. SEC. 4704. PESTICIDE ANALYTICAL METHODS. The Secretary of Health and Human Services shall, in consultation with the Administrator of the Environmental Protection AgencyCD develop a detailed long-range plan and timetable for research that is necessary for the development of and validation of— (A) new and improved anal)^ical methods capable of detecting at one time the presence of multiple pesticide residues in food, and (B) rapid pesticide anal3rtical methods, and (2) conduct a review to determine whether the use of rapid pesticide analj^ical methods by the Secretary would enable the Secretary to improve the cost-effectiveness of monitoring and enforcement activities under the Federal Food, Drug, and Cosmetic Act, including increasing the number of pesticide residues which can be detected and the number of tests for pesticide residues which can be conducted in a cost-effective manner. The Secretary shall report the plan developed under paragraph (1), the resources necessary to carry out the research described in such paragraph, recommendations for the implementation of such research, and the result of the review conducted under paragraph (2) not later than the expiration of 240 days after the date of the enactment of this Act to the Committee on Agriculture, Nutrition, PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1415 and Forestry and the Committee on Labor and Human Resources of the Senate and the House of Representatives. TITLE V—FOREIGN CORRUPT PRACTICES AMENDMENTS; INVESTMENT; AND TECHNOLOGY Subtitle A—Foreign Corrupt Practices Act Amendments; Review of Certain Acquisitions PART I—FOREIGN CORRUPT PRACTICES ACT Foreign corrupt AMENDMENTS Amendments of 1988. ^^ USC 78a note. X rd-cricss A.CL SEC. 5001. SHORT TITLE. This part may be cited as the "Foreign Corrupt Practices Act Amendments of 1988". SEC. 5002. PENALTIES FOR VIOLATIONS OF ACCOUNTING STANDARDS. Section 13(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(b)) is amended by adding at the end thereof the following: "(4) No criminal liability shall be imposed for failing to comply with the requirements of paragraph (2) of this subsection except as provided in paragraph (5) of ihis subsection. "(5) No person shall knowingly circumvent or knowingly fail to implement a system of internal accounting controls or knowingly falsify any book, record, or account described in paragraph (2). "(6) Where an issuer which has a class of securities registered pursuant to section 12 of this title or an issuer which is required to file reports pursuant to section 15(d) of this title holds 50 per centum or less of the voting power with respect to a domestic or foreign firm, the provisions of paragraph (2) require only that the issuer proceed in good faith to use its influence, to the extent reasonable under the issuer's circumstances, to cause such domestic or foreign firm to devise and maintain a system of internal accounting controls consistent with paragraph (2). Such circumstances include the relative degree of the issuer's ownership of the domestic or foreign firm and the laws and practices governing the business operations of the country in which such firm is located. An issuer which demonstrates good faith efforts to use such influence shall be conclusively presumed to have complied with the requirements of paragraph (2). "(7) For the purpose of paragraph (2) of this subsection, the terms •reasonable assurances' and 'reasonable detail' mean such level of detail and degree of assurance as would satisfy prudent officials in the conduct of their own affairs.". SEC. 5003. FOREIGN CORRUPT PRACTICES ACT AMENDMENTS. (a) PROHIBITED TRADE PRACTICES BY ISSUERS. —Section 30A of the Securities Exchange Act of 1934 (15 U.S.C. 78dd-l) is amended to read as follows: "PROHIBITED FOREIGN TRADE PRACTICES BY ISSUERS "SEC. 30A. (a) PROHIBITION.—It shall be unlawful for any issuer Mail. which has a class of securities registered pursuant to section 12 of ^^^^ ^^^ property. 102 STAT. 1416 PUBLIC LAW 100-418—AUG. 23, 1988 this title or which is required to file reports under section 15(d) of this title, or for any officer, director, employee, or Eigent of such issuer or any stockholder thereof acting on behalf of such issuer, to make use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, pa3nnent, promise to pay, or authorization of the pajonent of any money, or offer, gift, promise to give, or authorization of the giving of an5rthing of value to— "(1) any foreign official for purposes of^ "(AXi) influencing any act or decision of such foreign official in his official capacity, or (ii) inducing such foreign official to do or omit to do any act in violation of the lawful duty of such official, or "(B) inducing such foreign official to use his influence with a foreign government or instrumentality thereof to affect or influence any act or decision of such government or instrumentality, in order to assist such issuer in obtaining or retaining business for or with, or directing business to, any person; "(2) any foreign political party or official thereof or any candidate for foreign political office for purposes of— "(AXi) influencing any act or decision of such party, official, or candidate in its or his official capacity, or (ii) inducing such party, official, or candidate to do or omit to do an act in violation of the lawful duty of such party, official, or candidate, "(B) inducing such party, official, or candidate to use its or his influence with a foreign government or instrumentality thereof to affect or influence any act or decision of such government or instrumentality, in order to assist such issuer in obtaining or retaining business for or with, or directing business to, any person; or "(3) any person, while knowing that all or a portion of such money or thing of value will be offered, given, or promised, directly or indirectly, to any foreign official, to any foreign political party or official thereof, or to any candidate for foreign political office, for purposes of— "(A)(i) influencing any act or decision of such foreign official, political party, party official, or candidate in his or its official capacity, or (ii) inducing such foreign official, political party, party official, or candidate to do or omit to do any act in violation of the lawful duty of such foreign official, political party, party official, or candidate, or "(B) inducing such foreign official, political party, party official, or candidate to use his or its influence with a foreign government or instrumentality thereof to affect or influence any act or decision of such government or instrumentality, in order to assist such issuer in obtaining or retaining business for or with, or directing business to, any person. "(b) EXCEPTION FOR ROUTINE GOVERNMENTAL ACTION.—Subsection (a) shall not apply to any facilitating or expediting payment to a foreign official, political party, or party official the purpose of which is to expedite or to secure the performance of a routine governmental action by a foreign official, political party, or party official. "(c) AFFIRMATIVE DEFENSES.—It shall be an affirmative defense to actions under subsection (a) that— PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1417 "(1) the payment, gift, offer, or promise of anything of value that was made, was lawful under the written laws and regulations of the foreign officiars. political party's, party official s, or candidate's country; or "(2) the pajrment, gift, offer, or promise of anything of value that w£is made, was a reasonable and bona fide expenditure, such as travel and lodging expenses, incurred by or on behalf of a foreign official, party, party official, or candidate and was directly related to— (A) the promotion, demonstration, or explanation of products or services; or "(B) the execution or performance of a contract with a foreign government or agency thereof. "(d) GuiDEUNES BY THE ATTORNEY GENERAL.—Not later than one year after the date of the enactment of the Foreign Corrupt Practices Act Amendments of 1988, the Attorney General, after consultation with the Commission, the Secretary of Commerce, the United States Trade Representative, the Secretary of State, and the Secretary of the Treasury, and after obtEiining the views of all interested persons through public notice and comment procedures, shall determine to what extent compliance with this section would be enhanced and the business community would be assisted by further clarification of the preceding provisions of this section and may, based on such determination and to the extent necessary and appropriate, issue— "(1) guidelines describing specific t3T)es of conduct, associated Contracts. with common types of export sales arrangements and business contracts, which for purposes of the Department of Justice's present enforcement policy, the Attorney General determines would be in conformance with the preceding provisions of this section; and "(2) general precautionary procedures which issuers may use on a voluntary basis to conform their conduct to the Department of Justice's present enforcement policy regarding the preceding provisions of this section. The Attorney General shall issue the guidelines smd procedures referred to in the preceding sentence in accordance with the provisions of subchapter II of chapter 5 of title 5, United States (Dode, and those guidelines and procedures shall be subject to the provisions of chapter 7 of that title. "(e) OPINIONS OF THE ATTORNEY GENERAL.—(1) The Attorney General, after consultation with appropriate departments and agencies of the United States and after obtaining the views of all interested persons through public notice and comment procedures, shall establish a procedure to provide responses to specific inquiries by issuers concerning conformance of their conduct with the Department of Justice's present enforcement policy regarding the preceding provisions of this section. The Attorney General shall, within 30 days after receiving such a request, issue an opinion in response to that request. The opinion shall state whether or not certain specified prospective conduct would, for purposes of the Department of Justice's present enforcement policy, violate the preceding provisions of this section. Additional requests for opinions may be filed with the Attorney General regarding other specified prospective conduct that is beyond the scope of conduct specified in previous requests. In any action brought under the applicable provisions of this section, there shall be a rebuttable presumption that conduct, which is specified in 102 STAT. 1418 Courts, U.S. Classified information. PUBLIC LAW 100-418—AUG. 23, 1988 a request by an issuer and for which the Attorney General has issued an opinion that such conduct is in conformity with the Department of Justice's present enforcement policy, is in compliance with the preceding provisions of this section. Such a presumption may be rebutted by a preponderance of the evidence. In considering the presumption for purposes of this paragraph, a court shall weigh all relevant factors, including but not limited to whether the information submitted to the Attorney General was accurate and complete and whether it was within the scope of the conduct specified in any request received by the Attorney General. The Attorney General shall establish the procedure required by this paragraph in accordance with the provisions of subchapter II of chapter 5 of title 5, United States Code, and that procedure shall be subject to the provisions of chapter 7 of that title. "(2) Any document or other material which is provided to, received by, or prepared in the Department of Justice or any other department or agency of the United States in connection with a request by an issuer under the procedure established under paragraph (1), shall be exempt from disclosure under section 552 of title 5, United States Code, and shall not, except with the consent of the issuer, be made publicly available, regardless of whether the Attorney General responds to such a request or the issuer withdraws such request before receiving a response. "(3) Any issuer who has made a request to the Attorney General under paragraph (1) may withdraw such request prior to the time the Attorney General issues an opinion in response to such request. Any request so withdrawn shall have no force or effect. "(4) The Attorney General shall, to the maximum extent practicable, provide timely guidance concerning the Department of Justice's present enforcement policy with respect to the preceding provisions of this section to potential exporters and small businesses that are unable to obtain specialized counsel on issues pertaining to such provisions. Such guidance shall be limited to responses to requests under paragraph (1) concerning conformity of specified prospective conduct with the Department of Justice's present enforcement policy regarding the preceding provisions of this section and general explanations of compliance responsibilities and of potential liabilities under the preceding provisions of this section. "(f) DEFINITIONS.—For purposes of this section: "(1) The term 'foreign official' means any officer or employee of a foreign government or any department, agency, or instrumentality thereof, or any person acting in an official capacity for or on behalf of any such government or department, agency, or instrumentality. "(2XA) A person's state of mind is 'knowing* with respect to conduct, a circumstance, or a result if— "(i) such person is aware that such person is engaging in such conduct, that such circumstance exists, or tiiat such result is substantially certain to occur; or "(ii) such person has a firm belief that such circumstance exists or that such result is substantially certain to occur. "(B) When knowledge of the existence of a particular circumstance is required for an offense, such knowledge is established if a person is aware of a high probability of the existence of such circumstance, unless the person actually believes that such circumstance does not exist. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1419 "(3XA) The term 'routine governmental action' means only an action which is ordinarily and commonly performed by a foreign official in— "(i) obtaining permits, licenses, or other official documents to qualify a person to do business in a foreign country; "(ii) processing governmental papers, such as visas and work orders; "(iii) providing police protection, mail pick-up and delivery, or scheduling inspections associated with contract performance or inspections related to transit of goods across country; "(iv) providing phone service, power and water supply, loading and unloading cargo, or protecting perishable products or commodities from deterioration; or "(v) actions of a similar nature. "(B) The term 'routine governmental action' does not include any decision by a foreign official whether, or on what terms, to award new business to or to continue business with a particular party, or any action taken by a foreign official involved in the decisionmaking process to encourage a decision to award new business to or continue business with a particular party.". (b) VIOLATIONS.—Section 32(c) of the Securities Exchange Act of 1934 (15 U.S.C. 78f0 is amended to read as follows: "(cXlXA) Any issuer that violates section 30A(a) shall be fined not more than $2,000,000. "(B) Any issuer that violates section 30A(a) shall be subject to a civil penalty of not more than $10,000 imposed in an action brought by the Commission. "(2XA) Any officer or director of an issuer, or stockholder acting on behalf of such issuer, who willfully violates section 30A(a) shall be fined not more than $100,000, or imprisoned not more than 5 years, or both. "(B) Any employee or agent of an issuer who is a United States citizen, national, or resident or is otherwise subject to the jurisdiction of the United States (other than an officer, director, or stockholder acting on behalf of such issuer), and who willfully violates section 30A(a), shall be fined not more than $100,000, or imprisoned not more than 5 years, or both. "(C) Any officer, director, employee, or agent of an issuer, or stockholder acting on behalf of such issuer, who violates section 30A(a) shall be subject to a civil penalty of not more than $10,000 imposed in an action brought by the Commission. ' (3) Whenever a fine is imposed under paragraph (2) upon any officer, director, employee, agent, or stockholder of an issuer, such fine may not be paid, directly or indirectly, by such issuer.". (c) PROHIBITED TRADE PRACTICES BY DOMESTIC CONCERNS.—Section 104 of the Foreign Corrupt Practices Act of 1977 (15 U.S.C. 78dd-2) is amended to read as follows: "PROHIBITED FOREIGN TRADE PRACTICES BY DOMESTIC CONCERNS "SEC. 104. (a) PROHIBITION.—It shall be unlawful for any domestic Mail. concern, other than an issuer which is subject to section 30A of the ^^^^ ^"^ Securities Exchsuige Act of 1934, or for any officer, director, em- P'^oP®"^ ployee, or agent of such domestic concern or any stockholder thereof acting on behalf of such domestic concern, to make use of the mails 102 STAT. 1420 PUBLIC LAW 100-418—AUG. 23, 1988 or any means or instrumentality of interstate commerce curruptly in furtherance of an offer, pa3mient, promise to pay, or authorization of the payment of any money, or offer, gift, promise to give, or authorization of the giving of an)i;hing of value to— "(1) any foreign official for purposes of— "(AXi) influencing any act or decision of such foreign official in his official capacity, or (ii) inducing such foreign official to do or omit to do any act in violation of the lawful duty of such official, or "(B) inducing such foreign official to use his influence with a foreign government or instrumentality thereof to affect or influence any act or decision of such government or instrumentality, in order to assist such domestic concern in obtaining or retaining business for or with, or directing business to, any person; "(2) any foreign political party or official thereof or any candidate for foreign political office for purposes of— "(AXi) influencing any act or decision of such party, official, or candidate in its or his official capacity, or (ii) inducing such party, official, or candidate to do or omit to do an act in violation of the lawful duty of such party, official, or candidate, "(B) inducing such party, official, or candidate to use its or his influence with a foreign government or instrumentality thereof to affect or influence any act or decision of such government or instrumentality, in order to assist such domestic concern in obtaining or retaining business for or with, or directing business to, any person; or '(3) any person, while knowing that all or a portion of such money or thing of value will be offered, given, or promised, directly or indirectly, to any foreign ofGcial, to any foreign political party or official thereof, or to any candidate for foreign political office, for purposes of— "(AXi) influencing any act or decision of such foreign official, political party, party official, or candidate in his or its officud capacity, or (ii) inducing such foreign official, political party, party official, or candidate to do or omit to do any act in violation of the lawful duty of such foreign official, political party, party official, or candidate, or "(B) inducing such foreign ofKcial, political party, party official, or candidate to use his or its influence with a foreign government or instrumentality thereof to affect or influence any act or decision of such government or instrumentality, in order to assist such issuer in obtaining or retaining business for or with, or directing business to, any person. "(b) EXCEPTION FOR ROUTINE GOVERNMENTAL ACTION.—Subsection (a) shall not apply to any facilitating or expediting payment to a foreign ofifidal, political party, or party official the purpose of which is to expedite or to secure the performance of a routine governmental action by a foreign official, political party, or party official. "(c) AFFIRMATIVE DEFENSES.—It shaU be an affirmative defense to actions under subsection (a) that— "(1) the payment, gift, offer, or promise of anything of value that was made, was lai^ul under the written laws and r^ulations of the foreign <rf!icial's, political party's, party official s, or candidate's country; or PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1421 "(2) the pajmient, gift, offer, or promise of anything of value that was made, was a reasonable and bona fide expenditure, such as travel and lodging expenses, incurred by or on behalf of a foreign official, party, party official, or candidate and was directly related to— "(A) the promotion, demonstration, or explanation of products or services; or "(B) the execution or performance of a contract with a foreign government or agency thereof "(d) INJUNCTIVE REUEF.—(1) When it appears to the Attorney Courts, U.S. General that any domestic concern to which this section applies, or officer, director, employee, agent, or stockholder thereof, is engaged, or about to engage, in any act or practice constituting a violation of subsection (a) of this section, the Attorney General may, in his discretion, bring a civil action in an appropriate district court of the United States to enjoin such act or practice, and upon a proper showing, a permanent injunction or a temporary restraining order shall be granted without bond. "(2) For the purpose of any civil investigation which, in the opinion of the Attorney General, is necessary and proper to enforce this section, the Attorney General or his designee are empowered to administer oaths and aifirmations, subpoena witnesses, take evidence, and require the production of any books, papers, or other documents which the Attorney General deems relevant or material to such investigation. The attendance of witnesses and the production of documentary evidence may be required from any place in the United States, or any territory, possession, or commonwealth of the United States, at any designated place of hearing. "(3) In case of contumacy by, or refusal to obey a subpoena issued to, any person, the Attorney General may invoke the aid of any court of the United States within the jurisdiction of which such investigation or proceeding is carried on, or where such person resides or carries on business, in requiring the attendance and testimony of witnesses and the production of books, papers, or other documents. Any such court may issue an order requiring such person to appear before the Attorney (Jeneral or his designee, there to produce records, if so ordered, or to give testimony touching the matter under investigation. Any failure to obey such order of the court may be punished by such court as a contempt thereof All process in any such case may be served in the judicial district in which such person resides or may be found. The Attorney General may make such rules relating to civil investigations as may be necessary or appropriate to implement the provisions of this subsection. "(e) GuiDEUNES BY THE ATTORNEY GENERAL.—Not later than 6 months after the date of the enactment of the Foreign Corrupt Practices Act Amendments of 1988, the Attorney (Jeneral, after consultation with the Securities and Exchange Commission, the Secretary of Commerce, the United States Trade Representative, the Secretary of State, and the Secretary of the Treasury, and after obtaining the views of all interested persons through public notice and comment procedures, shall determine to what extent compliance with this section would be enhanced and the business community would be assisted by further clarification of the preceding provisions of this section and may, based on such determination and to the extent necessary and appropriate, issue— 19-194 O—91—Part 2 14 : QL 3 102 STAT. 1422 Contracts. Courts, U.S. Classified information. PUBLIC LAW 100-418—AUG. 23, 1988 '(1) guidelines describing specific types of conduct, associated with common t3rpes of export sales arrangements and business contracts, which for purposes of the Department of Justice's present enforcement policy, the Attorney General determines would be in conformance with the preceding provisions of this section; and "(2) general precautionary procedures which domestic concerns may use on a voluntary basis to conform their conduct to the Department of Justice's present enforcement policy regarding the preceding provisions of this section. The Attorney General shall issue the guidelines and procedures referred to in the preceding sentence in accordance with the provisions of subchapter II of chapter 5 of title 5, United States Code, and those guidelines and procedures shall be subject to the provisions of chapter 7 of that title. "(f) OPINIONS OF THE ATTORNEY GENERAL.—(1) The Attorney General, after consultation with appropriate departments and agencies of the United States and after obtaining the views of all interested persons through public notice and comment procedures, shall establish a procedure to provide responses to specific inquiries by domestic concerns concerning conformance of their conduct with the Department of Justice's present enforcement policy regarding the preceding provisions of this section. The Attorney General shall, within 30 days after receiving such a request, issue an opinion in response to that request. The opinion shall state whether or not certain specified prospective conduct would, for purposes of the Department of Justice's present enforcement policy, violate the preceding provisions of this section. Additional requests for opinions may be filed with the Attorney General regarding other specified prospective conduct that is beyond the scope of conduct specified in previous requests. In any action brought under the applicable provisions of this section, there shcdl be a rebuttable presumption that conduct, which is specified in a request by a domestic concern and for which the Attorney General has issued an opinion that such conduct is in conformity with the Department of Justice's present enforcement policy, is in compliance with the preceding provisions of this section. Such a presumption may be rebutted by a preponderance of the evidence. In considering the presumption for purposes of this par£^aph, a court shall weigh all relevant factors, including but not limited to whether the information submitted to the Attorney General was accurate and complete and whether it was within the scope of the conduct specified in any request received by the Attorney General. The Attorney General shall establish the procedure required by this paragraph in accordance with the provisions of subchapter II of chapter 5 of title 5, United States Code, and that procedure shall be subject to the provisions of chapter 7 of that title. "(2) Any document or other material which is provided to, received by, or prepared in the Department of Justice or any other department or agency of the United States in connection with a request by a domestic concern under the procedure established under paragraph (1), shall be exempt from disclosure under section 552 of title 5, United States Code, and shall not, except with the consent of the domestic concern, be made publicly available, regardless of whether the Attorney General responds to such a request or the domestic concern withdraws such request before receiving a response. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1423 "(3) Any domestic concern who has made a request to the Attorney General under paragraph (1) may withdraw such request prior to the time the Attorney General issues an opinion in response to such request. Any request so withdrawn shall have no force or effect. "(4) The Attorney General shall, to the maximum extent practicable, provide timely guidance concerning the Department of Justice's present enforcement policy with respect to the preceding provisions of this section to potential exporters and small businesses that are unable to obtain specialized counsel on issues pertaining to such provisions. Such guidance shall be limited to responses to requests under paragraph (1) concerning conformity of specified prospective conduct with the Department of Justice's present enforcement policy regarding the preceding provisions of this section and general explanations of compliance responsibilities and of potential liabilities under the preceding provisions of this section. "(g) PENALTIES.—(IXA) Any domestic concern that violates subsection (a) shall be fined not more than $2,000,000. "(B) Any domestic concern that violates subsection (a) shall be subject to a civil penalty of not more than $10,000 imposed in an action brought by the Attorney General. "(2)(A) Any officer or director of a domestic concern, or stockholder acting on behalf of such domestic concern, who willfully violates subsection (a) shall be fined not more than $100,000, or imprisoned not more than 5 years, or both. "(B) Any employee or agent of a domestic concern who is a United States citizen, national, or resident or is otherwise subject to the jurisdiction of the United States (other than an officer, director, or stockholder acting on behalf of such domestic concern), and who willfully violates subsection (a), shall be fined not more than $100,000, or imprisoned not more than 5 years, or both. "(C) Any officer, director, employee, or agent of a domestic concern, or stockholder acting on behalf of such domestic concern, who violates subsection (a) shall be subject to a civil penalty of not more than $10,000 imposed in an action brought by the Attorney General. "(3) Whenever a fine is imposed under paragraph (2) upon any officer, director, employee, Eigent, or stockholder of a domestic concern, such fine may not be paid, directly or indirectly, by such domestic concern. "(h) DEFINITIONS.—For purposes of this section: "(1) The term 'domestic concern' means— "(A) any individual who is a citizen, national, or resident of the United States; and "(B) any corporation, partnership, association, joint-stock company, business trust, unincorporated organization, or sole proprietorship which has its principal place of business in the United States, or which is organized under the laws of a State of the United States or a territory, possession, or commonwealth of the United States. "(2) The term 'foreign official' means any officer or employee of a foreign government or any department, agency, or instrumentality thereof, or any person acting in an official capacity for or on behalf of any such government or department, agency, or instrumentality. "(SKA) A person's state of mind is 'knowing' with respect to conduct, a circumstance, or a result if— 102 STAT. 1424 PUBLIC LAW 100-418—AUG. 23, 1988 ''(i) such person is aware that such person is engaging in such conduct, that such circumstauice exists, or that such result is substantially certain to occur; or "(ii) such person has a firm belief that such circumstance exists or that such result is substantially certain to occur. "(B) When knowledge of the existence of a particular circumstance is required for an offense, such knowledge is established if a person is aware of a high probability of the existence of such circumstance, unless the person actually believes that such circumstance does not exist. "(4XA) For purposes of paragraph (1), the term 'routine governmental action' means only an action which is ordinarily and conunonly performed by a foreign official in— "(i) obtaining permits, licenses, or other official documents to qualify a person to do business in a foreign country; "(ii) processing governmental papers, such as visas and work orders; "(iii) providing police protection, mail pick-up and delivery, or schedulii^ inspections associated with contract peiformance or inspections related to transit of goods across country; "(iv) providing phone service, power and water supply, loading and unloading cargo, or protecting perishable products or commodities from deterioration; or "(v) actions of a similar nature. "(B) The term 'routine governmental action' does not include any decision by a foreign official whether, or on what terms, to award new business to or to continue business with a particiUar party, or any action taken by a foreign official involved in the decision-making process to encourage a decision to award new business to or continue business with a particular party. "(5) The term 'interstate conmierce' means trade, commerce, transportation, or communication among the several States, or between any foreign country and any State or between any State and any place or ship outside thereof, and such term includes the intrastate use of— "(A) a telephone or other interstate means of conmiunication, or "(B) any other interstate instrumentality.". 15 u s e 78dd-l note. (d) INTERNATIONAL AGREEMENT.— (1) NEGOTIATIONS.—It is the sense of the Congress that the President should pursue the n^otiation of an international agreement, among the members of the Organization of Economic Cooperation and Development, to govern persons from those countries concerning acts prohibited with respect to issuers and domestic concerns by the amendments made by this section. Such international agreement should include a process by which problems and conflicts associated with such acts could be resolved. (2) REPORT TO CONGRESS.—(A) Within 1 year after the date of the enactment of this Act, the President shall submit to the Congress a report on— (i) the progress of the n^otiations referred to in paragraph (1), (ii) those steps which the executive branch and the Congress should consider taking in the event that these PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1425 negotiations do not successfully eliminate any competitive disadvantage of United States businesses that results when persons from other countries commit the acts described in pars^aph (1); and (iii) possible actions that could be taken to promote cooperation by other countries in international efforts to prevent bribery of foreign officials, candidates, or parties in third countries. (B) The President shall include in the report submitted under President of U.S. subparagraph (A)— (i) any legislative recommendations necessary to give the President the authority to take appropriate action to carry out clauses (ii) and (iii) of subparagraph (A); (ii) an analysis of the potential effect on the interests of the United States, including United States national security, when persons from other countries commit the acts described in paragraph (1); and (iii) an assessment of the current and future role of private initiatives in curtailing such acts. PART II—REVIEW OF CERTAIN MERGERS, ACQUISITIONS, AND TAKEOVERS SEC. 5021. AUTHORITY TO REVIEW CERTAIN MERGERS. ACQUISITIONS. AND TAKEOVERS. Title VII of the Defense Production Act of 1950 (50 U.S.C. App. 2158 et seq.) is amended by adding at the end thereof the following: AUTHORITY TO REVIEW CERTAIN MERGERS, ACQUISITIONS, AND TAKEOVERS "SEC. 721. (a) INVESTIGATIONS.—The President or the President's designee may make an investigation to determine the effects on national security of mergers, acquisitions, and takeovers proposed or pending on or after the date of enactment of this section by or with foreign persons which could result in foreign control of persons engaged in interstate commerce in the United States. If it is determined that an investigation should be undertaken, it shall commence no later than 30 days sifter receipt by the President or the President's designee of written notification of the proposed or pending mei^er, acquisition, or takeover as prescribed by regulations promulgated pursuant to this section. Such investigation shall be completed no later than 45 days after such determination. "(b) CONFIDENTIALITY OF INFORMATION.—Any information or docu- mentary material filed with the President or the President's designee pursuant to this section shall be exempt from disclosure under section 552 of title 5, United States Code, and no such information or documentary material may be made public, except as may be relevant to any administrative or judicisd action or proceeding. Nothing in this subsection shall be construed to prevent disclosure to either House of Congress or to any duly authorized committee or subcommittee of the Congress. "(c) ACTION BY THE PRESIDENT.—Subject to subsection (d), the President may take such action for such time as the President considers appropriate to suspend or prohibit any acquisition, merger, or takeover, of a person engaged in interstate commerce in Defense and national security. 50 u s e app. 2170. 102 STAT. 1426 PUBLIC LAW 100-418—AUG. 23, 1988 the United States proposed or pending on or after the date of enactment of this section by or with foreign persons so that such President of U.S. control will not threaten to impair the national security. The President shall announce the decision to take action pursuant to this subsection not later than 15 days after the investigation described in subsection (a) is completed. The President may direct the Attorney General to seek appropriate relief, including divestment relief, in the district courts of the United States in order to implement and enforce this section. "(d) FINDINGS OF THE PRESIDENT.—The President may exercise the authority conferred by subsection (c) only if the President finds that' l l ) there is credible evidence that leads the President to believe that the foreign interest exercising control might take action that threatens to impair the national security, and "(2) provisions of law, other than this section and the International Emergency Economic Powers Act (50 U.S.C. 17011706), do not in the President's judgment provide adequate and appropriate authority for the President to protect the national security in the matter before the President. The provisions of subsection (d) of this section shall not be subject to judicial review. "(e) FACTORS TO B E CONSIDERED.—For purposes of this section, the President or the President's designee may, taking into account the requirements of national security, consider among other factors— "(1) domestic production needed for projected national defense requirements, "(2) the capability and capacity of domestic industries to meet national defense requirements, including the availability of human resources, products, technology, materials, and other supplies and services, and '(3) the control of domestic industries and commercial activity by foreign citizens as it affects the capability and capacity of the United States to meet the requirements of national security. President of U.S. '(D REPORT TO THE CONGRESS.—If the President determines to take action under subsection (c), the President shall immediately transmit to the Secretary of the Senate and the Clerk of the House of Representatives a written report of the action which the President intends to take, including a detailed explanation of the findings made under subsection (d). President of U.S. "(g) REGULATIONS.—'The President shall direct the issuance of regulations to carry out this section. Such regulations shall, to the extent possible, minimize paperwork burdens and shall to the extent possible coordinate reporting requirements under this section with reporting requirements under any other provision of Federal law. (h) EFFECT ON OTHER LAW.—Nothing in this section shall be construed to alter or affect any existing power, process, regulation, investigation, enforcement measure, or review provided by any other provision of law.". Subtitle B—Technology Technology Competitiveness Act. Research and development. 15 u s e 271 note. PART I—TECHNOLOGY COMPETITIVENESS SEC. 5101. SHORT TITLE. This part may be cited as the "Technology Competitiveness Act". PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1427 Subpart A—National Institute of Standards and Technology SEC. 5111. FINDINGS AND PURPOSES. Section 1 of the Act of March 3,1901 (15 U.S.C. 271) is amended to read as follows: "FINDINGS AND PURPOSES 1. (a) The Congress finds and declares the following: "(1) The ftiture well-being of the United States economy depends on a strong manufacturing base and requires continual improvements in manufacturing technology, quaUty control, and techniques for ensuring product reliability and costefTectiveness. "(2) Precise measurements, calibrations, and standards help United States industry and manufacturing concerns compete strongly in world markets. "(3) improvements in manufacturing and product technol(^y depend on fundamental scientific and engineering research to develop (A) the precise and accurate measurement methods and measurement standards needed to improve quality and reliability, and (B) new technological processes by which such improved methods may be used in practice to improve manufacturing and to assist industry to transfer important laboratory discoveries into commercial products. "(4) Scientific pix^^ress, public safety, and product compatibility and standanlization also depend on the development of precise measurement methods, standards, and related basic technol(^es. "(5) The National Bureau of Standards since its establishment has served as the Federal focal point in developing basic measurement standards and related technol(^es, has taken a lead role in stimulating cooperative work among private industrial organizations in efforts to surmount technological hurdles, and otherwise has been responsible for assisting in the improvement of industrial technology. "(6) The Federal Government should maintain a national science, engineering, and technology laboratory which provides measurement methods, standards, and associated technolc^es and which aids United States companies in using new technol(^es to improve products and manufacturing processes. "(7) Such national laboratory also should serve industry, trade associations, State technolc^y prc^rams, labor organizations, professional societies, and educational institutions by disseminating information on new basic technologies including automated manufacturing processes. "0>) It is the purpose of this Act— "(1) to rename the National Bureau of Standards as the National Institute of Standards and Technology and to modernize and restructure that agency to augment its unique ability to enhance the competitiveness of American industry while maintaining its traditional function as lead national laboratory for providing the measurements, calibrations, and quality assurance techniques which underpin United States commerce, technological progress, improved product reliability and manufacturing processes, and public safety; "SECTION 102 STAT. 1428 PUBLIC LAW 100-418—AUG. 23, 1988 "(2) to assist private sector initiatives to capitalize on advanced technology; "(3) to advance, through cooperative efforts among industries, universities, and government laboratories, promising research and development projects, which can be optimized by the private sector for commercial and industrial applications; and "(4) to promote shared risks, accelerated development, and pooling of skills which will be necessary to strengthen America's manufacturing industries.". SEC. 5112. ESTABLISHMENT, FUNCTIONS, AND ACTIVITIES. (a) ESTABUSHMENT, FUNCTIONS, AND ACTIVITIES OF THE INSTITUTE.—Section 2 of the Act of March 3, 1901 (15 U.S.C. 272) is amended to read as follows: "ESTABUSHMENT, FUNCTIONS, AND ACTIVITIES Contracts. "SEC. 2. (a) There is established within the Department of Commerce a science, engineering, technology, and measurement laboratory to be known as the National Institute of Standards and Technology (hereafter in this Act referred to as the 'Institute'). "(b) The Secretary of Commerce (hereafter in this Act referred to as the 'Secretary') acting through the Director of the Institute (hereafter in this Act referred to as the 'Director') and, if appropriate, through other officials, is authorized to take all actions necessary and appropriate to accomplish the purposes of this Act, including the following functions of the Institute— "(1) to assist industry in the development of technology and procedures needed to improve quality, to modernize manufacturing processes, to ensure product reliability, manufacturability, functionality, and cost-effectiveness, and to facilitate the more rapid commercialization, especially by smalland medium-sized companies throughout the United States, of products bsised on new scientific discoveries in fields such as automation, electronics, advanced materials, biotechnology, and optical technologies; "(2) to develop, maintain, and retain custody of the national standards of measurement, and provide the means and methods for making measurements consistent with those standards, including comparing standards used in scientific investigations, engineering, manufacturing, commerce, industry, and educational institutions with the standards adopted or recognized by the Federal Government; "(3) to enter into contracts, including cooperative research and development arrangements, in furtherance of the purposes of this Act; "(4) to provide United States industry. Government, and educational institutions with a national clearinghouse of current information, techniques, and advice for the achievement of higher quality and productivity based on current domestic and international scientific and technical development; "(5) to assist industry in the development of measurements, measurement methods, and basic measurement technology; "(6) to determine, compile, evaluate, and disseminate physical constants and the properties and performance of conventional and advanced materials when they are important to science, PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1429 engmeering, manufacturing, education, commerce, and industry and are not available with sufficient accuracy elsewhere; "(7) to develop a fundeunental basis and methods for testing materials, mechanisms, structures, equipment, and systems, including those used by the Federal Government; "(8) to assure the compatibility of United States national measurement standards with those of other nations; "(9) to cooperate with other departments and agencies of the Federal Government, with industry, with State and local governments, witli the governments of other nations and international organizations, and with private organizations in establishing standard practices, codes, specifications, and voluntary consensus standards; "(10) to advise government and industry on scientific and technical problems; and "(11) to invent, develop, and (when appropriate) promote transfer to the private sector of measurement devices to serve special national needs. "(c) In carrying out the functions specified in subsection (b), the Secretary, acting through the Director and, if appropriate, through other appropriate officials, may, among other thic^— "(1) construct physical standards; "(2) test, calibrate, and certify standards and standard measuring apparatus; "(3) study and improve instruments, measurement methods, and industrial process control and quality assurance techniques; "(4) cooperate with the States in securing imiformity in weights and measures laws and methods of inspection; "(5) cooperate with foreign scientific and technical institutions to understand technological developments in other countries better; "(6) prepare, certify, and sell standard reference materials for use in ensuring the accuracy of chemical analyses and measurements of physical and other properties of materials; "(7) in furtherance of the purposes of this Act, accept resesurch associates, cash donations, and donated equipment from industry, and also engage with industry in research to develop new basic and generic technologies for traditional and new products and for improved production and manufacturing; "(8) study and develop fundamental scientific understanding and improved measurement, analysis, synthesis, processing, and fabrication methods for chemical substances and compounds, ferrous and nonferrous metals, and all traditional and advanced materials, including processes of degradation; "(9) investigate ionizing and nonionizing radiation and radioactive substances, their uses, and ways to protect people, structures, and equipment from their harmful effects; "(10) determine the atomic and molecular structure of matter, t h r o u ^ analysis of spectra and other methods, to provide a basis for predicting chemical and physical structures and reactions and for designing new materials and chemical substances, including biologically active macromolecules; "(11) perform research on electromagnetic waves, including optical waves, and on properties and performance of electrical, electronic, and electromagnetic devices and systems and their essential materials, develop and maintain related standards. 102 STAT. 1430 15 use 1532. PUBLIC LAW 100-418—AUG. 23, 1988 and disseminate standard signals through broadcast and other means; "(12) develop and test standard interfaces, communication protocols, and data structures for computer and related telecommunications systems; "(13) study computer systems (as that term is defined in section 20(d) of this Act) and their use to control machinery and processes; "(14) perform research to develop standards and test methods to advance the effective use of computers and related systems and to protect the information stored, processed, and tremsmitted by such systems and to provide advice in support of policies affecting Federal computer and related telecommunications systems; "(15) determine properties of building materials and structural elements, and encourage their standardization and most effective use, including investigation of fire-resisting properties of building materials and conditions under which they may be most efficiently used, and the standardization of types of appliances for fire prevention; "(16) undertake such research in engineering, pure and applied mathematics, statistics, computer science, materials science, and the physical sciences as may be necessary to carry out and support the functions specified in this section; "(17) compile, evaluate, publish, and otherwise disseminate general, specific and technical data resulting from the performance of the functions specified in this section or from other sources when such data are important to science, engineering, or industry, or to the general public, and are not available elsewhere; "(18) collect, create, analyze, and maintain specimens of scientific value; "(19) operate national user facilities; "(20) evaluate promising inventions and other novel technical concepts submitted by inventors and small companies and work with other Federal agencies. States, and localities to provide appropriate technical assistance and support for those inventions which are found in the evaluation process to have commercial promise; "(21) demonstrate the results of the Institute's activities by exhibits or other methods of technology transfer, including the use of scientific or technical personnel of the Institute for parttime or intermittent teaching and training activities at educational institutions of higher learning as part of and incidental to their official duties; and "(22) undertake such other activities similar to those specified in this subsection as the Director determines appropriate.". (b) OTHER FUNCTIONS OF SECRETARY.—The Secretary of Commerce is authorized to— (1) conduct research on all of the telecommunications sciences, including wave propagation and reception, the conditions which affect electromagnetic wave propagation and reception, electromagnetic noise and interference, radio system characteristics, operating techniques affecting the use of the electromagnetic spectrum, and methods for improving the use of the electromagnetic spectrum for telecommunications purposes; PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1431 (2) prepare and issue predictions of electromagnetic wave propagation conditions and warnings of disturbances in such conditions; (3) investigate conditions which affect the transmission of radio waves from their source to a receiver and the compilation and distribution of information on such transmission of radio waves as a basis for choice of frequencies to be used in radio operations; (4) conduct research and analysis in the general field of telecommunications sciences in support of assigned functions and in support of other Government agencies; (5) investigate nonionizing electromagnetic radiation and its uses, as well as methods and procedures for measuring and assessing electromagnetic environments, for the purpose of developing and coordinating policies and procedures affecting Federal Government use of the electromagnetic spectrum for telecommunications purposes; (6) compile, evaluate, publish, and otherwise disseminate general scientific and technical data resulting from the performance of the functions specified in this section or from other sources when such data are important to science, engineering, or industry, or to the general public, and are not available . elsewhere; and (7) undertake such other activities similar to those specified in this subsection as the Secretary of Commerce determines appropriate. (c) DIRECTOR OF INSTITUTE.—(1) Section 5 of the Act of March 3, 1901 (15 U.S.C. 274) is amended to read as follows: "SEC. 5. The Director shall be appointed by the President, by and President of U.S. with the advice and consent of the Senate. The Director shall have the general supervision of the Institute, its equipment, and the exercise of its functions. The Director shall make an annual report Reports, to the Secretary of Commerce. The Director may issue, when necessary, bulletins for public distribution, containing such information as may be of value to the public or facilitate the exercise of the functions of the Institute. The Director shall be compensated at the rate in effect for level IV of the Executive Schedule under section 5315 of title 5, United States Code. Until such time as the Director assumes office under this section, the most recent Director of the National Bureau of Standards shall serve as Director.". (2) Section 5315 of title 5, United States Code, is amended by striking "National Bureau of Standards" and inserting in lieu thereof "National Institute of Standards and Technolc^y". (d) ORGANIZATION PLAN.—(1) At least 60 days before its effective 15 use 272 note, date and within 120 days after the date of the enactment of this Act, an initial organization plan for the National Institute of Standards and Technology (hereafter in this part referred to as the "Institute") shall be submitted by the Director of the Institute (hereafter in this part referred to as the "Director") after consultation with the Visiting (Committee on Advanced Technology, to the Committee on Science, Space, and Technology of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate. Such plan shall— (A) establish the major operating units of the Institute; (B) assign each of the activities listed in section 2(c) of the Act of March 3, 1901, and all other functions and activities of the 102 STAT. 1432 PUBLIC LAW 100-418—AUG. 23, 1988 Institute, to at least one of the major operating units established under subparagraph (A); (C) provide details of a 2-year program for the Institute, including the Advanced Technology Program; (D) provide details regarding how the Institute will expand and fund the Inventions program in accordance with section 27 of the Act of March 3,1901; and (E) make no changes in the Center for Building Technology or the Center for Fire Research. (2) The Director may revise the organization plan. Any revision of the organization plan submitted under paragraph (1) shall be submitted to the appropriate committees of the House of Representatives and the Senate at least 60 days before the effective date of such revision. (3) Until the effective date of the organization plan, the major operating units of the Institute shall be the major operating units of the National Bureau of Standards that were in existence on the date of the enactment of this Act and the Advanced Technology Program. SEC. 5113. REPEAL OF PROVISIONS. The second paragraph of the material relating to the Bureau of Standards in the first section of the Act of July 16, 1914 (15 U.S.C. 280), the last paragraph of the material relating to Contingent and Miscellaneous Expenses in the first section of the Act of March 4, 1913 (15 U.S.C. 281), and the first section of the Act of May 14,1930 (15 U.S.C. 282) are repealed. SEC. 5114. REPORTS TO CONGRESS; STUDIES BY THE NATIONAL ACADEMIES OF ENGINEERING AND SCIENCES. 15 use 271 note. The Act of March 3, 1901 (15 U.S.C. 271 et seq.) is amended— (1) by redesignating section 23 as section 31; and (2) by adding after section 22 the following new sections: "REPORTS TO CONGRESS 15 use 278i. "SEC. 23. (a) The Director shall keep the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Science, Space, and Technology of the House of Representatives fully and currently informed with regard to all of the activities of the Institute. "G)) The Director shall justify in writing all changes in policies regarding fees for standard reference materials and calibration services occurring after June 30, 1987, including a description of the anticipated impact of any proposed changes on demand for and anticipated revenues from the materials and services. Changes in policy and fees shall not be effective unless and until the Director has submitted the proposed schedule and justification to the Congress and 30 days on which both Houses of Congress are in session have elapsed since such submission, except that the requirement of this sentence shall not apply with respect to adjustments which are based solely on changes in the costs of raw materials or of producing and delivering standard reference materials or calibration services. " S T U D I E S BY THE NATIONAL RESEARCH COUNCIL Contracts. 15 use 278j. "SEC. 24. The Director may periodically contract with the National Research Council for advice and studies to assist the Institute PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1433 to serve United States industry and science. The subjects of such advice and studies may include— "(1) the competitive position of the United States in key areas of manufacturing and emerging technologies and research activities which would enhance that competitiveness; "(2) potential activities of the Institute, in cooperation with industry and the States, to assist in the transfer and dissemination of new technologies for manufacturing and quality assurance; and "(3) identification and assessment of likely barriers to widespread use of advanced manufacturing technology by the United States workforce, including training and other initiatives which could lead to a higher percentage of manufacturing jobs of United States companies being located within the borders of our country.". SEC. 5115. TECHNICAL AMENDMENTS. (a) AMENDMENTS TO ORGANIC ACT.—(1) Except as provided in paragraph (2), the Act of March 3, 1901 (15 U.S.C. 271 et seq.) is amended by striking "National Bureau of Standards", "Bureau" ' and "bureau" wherever they appear and inserting in lieu thereof "Institute". (2) Section 31 of such Act, as so redesignated by section 5114(1) of this part, is amended by striking "National Bureau of Standards" and inserting in lieu thereof "National Institute of Standards and Technology". (b) AMENDMENTS TO STEVENSON-WYDLER TECHNOLOGY INNOVATION ACT OF 1980.—(1) Section 80)) of the Stevenson-Wydler Technolo^ Innovation Act of 1980, as so redesignated by section 5122 of this part, is amended by striking "Director" and inserting in lieu thereof 'Assistant Secretary". (2) Sections 11(e) and 17(d) and (e) of the Stevenson-Wydler Technology Innovation Act of 1980, as so redesignated by section 5122(aXl) of this part, are amended— (A) by striking "National Bureau of Standards" wherever it appears and inserting in lieu thereof "National Institute of Standards and Technology"; and (B) by striking "Bureau" wherever it appears and inserting in lieu thereof "Institute". (c) AMENDMENTS TO OTHER LAWS.—References in any other Federal law to the National Bureau of Standards shall be deemed to refer to the National Institute of Standards and Technology. 15 USC 3706. 15 USC 3710, 37iia. 15 use 271 note. Subpart B—Technology Extension Activities and Clearinghouse on State and Local Initiatives SEC. 5121. TECHNOLOGY EXTENSION ACTIVITIES. (a) TECHNOLOGY CENTERS AND TECHNICAL ASSISTANCE.—The Act of March 3, 1901, as amended by this part, is further amended by adding after section 24 the following new sections: "REGIONAL CENTERS FOR THE TRANSFER OF MANUFACTURING TECHNOLOGY "SEC. 25. (a) The Secretary, through the Director and, if appropriate, through other ofHcials, shall provide assistance for the creation and support of Regional Centers for the Transfer of Manu- 15 use 278k. 102 STAT. 1434 Schools and coUeges. Federal Register, pubhcation. PUBLIC LAW 100-418—AUG. 23, 1988 facturing Technology (hereafter in this Act referred to as the 'Centers'). Such centers shall be affiliated with any United States-based nonprofit institution or organization, or group thereof, that applies for and is awarded financial assistance under this section in accordance with the description published by the Secretary in the Federal Register under subsection (cX2). Individual awards shall be decided on the basis of merit review. The objective of the Centers is to enhance productivity and technological performance in United States manufacturing through— "(1) the transfer of manufacturing technology and techniques developed at the Institute to Centers and, through them, to manufacturing companies throughout the United States; "(2) the participation of individuals from industry, universities. State governments, other Federal agencies, and, when appropriate, the Institute in cooperative technology transfer activities; "(3) efforts to make new manufacturing technology and processes usable by United States-based small- and medium-sized companies; "(4) the active dissemination of scientific, engineering, technical, and management information about manufacturing to industrial firms, including small- and medium-sized manufacturing companies; and "(5) the utilization, when appropriate, of the expertise and capability that exists in Federal laboratories other than the Institute. "(b) The activities of the Centers shall include— "(1) the establishment of automated manufacturing systems and other advanced production technologies, based on research by the Institute, for the purpose of demonstrations and technology transfer; "(2) the active transfer and dissemination of research findings and Center expertise to a wide range of companies and enterprises, particidarly small- and medium-sized manufacturers; and "(3) loans, on a selective, short-term basis, of items of advanced manufacturing equipment to small manufacturing firms with less than 100 employees. "(cXD The Secretary may provide financial support to any Center created under subsection (a) for a period not to exceed six years. The Secretary may not provide to a Center more than 50 percent of the capital and annual operating and maintenance funds required to create and maintain such Center. "(2) The Secretary shall publish in the Federal Register, within 90 days after the date of the enactment of this section, a draft descrip^j^jj ^f g^ program for establishing Centers, including— "(A) a description of the program; "(B) procedures to be followed by applicants; "(C) criteria for determining qu£ilified applicants; "(D) criteria, including those listed under paragraph (4), for choosing recipients of financial assistance under this section from among the qualified applicants; and "(E) maximum support levels expected to be available to Centers under the program in the fourth through sixth years of assistance under this section. The Secretary shall publish a final description under this paragraph after the expiration of a 30-day comment period. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1435 "(3) Any nonprofit institution, or group thereof, or consortia of nonprofit institutions, including entities existing on the date of the enactment of this section, may submit to the Secretary an application for financial support under this subsection, in accordance with the procedures established by the Secretary and published in the Federal Roister under paragraph (2). In order to receive assistance under this section, an applicant shall provide adequate assurances that it will contribute 50 percent or more of the proposed Center's capital and annual operating and maintenance costs for the first three years and an increasing share for each of the last three years. Each applicant shall also submit a proposal for the allocation of the l ^ a l rights associated with any invention which may result from the proposed Center's activities. "(4) The Secretary shall subject each such application to merit review. In making a decision whether to approve such application and provide financial support under this subsection, the Secretary shall consider at a minimum (A) the merits of the application, particularly those portions of the application regarding technology transfer, training and education, and adaptation of manufacturing technol(^es to the needs of particular industrial sectors, (B) the quality of service to be provided, (C) geogrsLphical diversity and extent of service area, and (D) the percentage of funding and amount of in-kind commitment from other sources. "(5) Each Center which receives financial assistance under this section shall be evaluated during its third year of operation by an evaluation panel appointed by the Secretary. E^ach such evaluation panel shall be composed of private experts, none of whom shall be connected with the involved Center, and Federal officials. An official of the Institute shall chair the panel. Each evaluation panel shall measure the involved Center's performance against the objectives specified in this section. The Secretary shall not provide funding for the fourth through the sixth years of such Center's operation unless the evaluation is positive. If the evaluation is positive, the Secretary may provide continued funding through the sixth year at declining levels, which are designed to ensure that the Center no longer needs financial support from the Institute by the seventh year. In no event shall fiindii^ for a Center be provided by the Department of Commerce after the sixth year of the operation of a Center. "(6) The provisions of chapter 18 of title 35, United States Code, shall (to the extent not inconsistent with this section) apply to the promotion of technology from research by Centers under this section. "(d) There are authorized to be appropriated for the purposes of Appropriation carrying out this section, a combined total of not to exceed authorization. $40,000,000 for fiscal years 1989 and 1990. Such sums shall remain available until expended. "ASSISTANCE TO STATE TECHNOLOGY PROGRAMS "SEC. 26. (a) In addition to the (Denters p n ^ a m created under 15 use 278/. section 25, the Secretary, through the Director and, if appropriate, through other officials, shall provide technical assistance to State technology programs throughout the United States, in order to help those prc^ams help businesses, particularly small- and mediumsized businesses, to enhance their competitiveness through ttie application of science and technology. 102 STAT. 1436 Contracts. 15 u s e 278/ note. Contracts. PUBLIC LAW 100-418—AUG. 23, 1988 "(b) Such assistance from the Institute to State technology programs shall include, but not be limited to— "(1) technical information and advice from Institute personnel; "(2) workshops and seminars for State officials interested in transferring Federal technology to businesses; and "(3) entering into cooperative agreements when authorized to do so under this or any other Act. . (b) TECHNOLOGY EXTENSION SERVICES.—(1) The Secretary shall conduct a nationwide study of current State technology extension services. The study shsdl include— (A) a thorough description of each State program, including its duration, its annual budget, and the number and types of businesses it has aided; (B) a description of any anticipated expansion of each State program and its associated costs; (C) an evaluation of the success of the services in transferring technology, modernizing manufacturing processes, and improving the productivity and profitability of businesses; (D) an assessment of the degree to which State services make use of Federal programs, including the Small Business Innovative Research program and the programs of the Federal Laboratory Consortium, the National Technical Information Service, the National Science Foundation, the Office of Productivity, Technology, and Innovation, and the Small Business Administration; (E) a survey of what additional Federal information and technical assistance the services could utilize; and (F) an assessment of how the services could be more effective agents for the transfer of Federal scientific and technical information, including the results and application of Federal and federally funded research. The Secretary shall submit to the Committee on Science, Space, and Technology of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate, at the time of submission of the organization plan for the Institute under section 5112(dXl), the results of the study and an initial implementation plan for the programs under section 26 of the Act of March 3, 1901, and under this section. The implementation plan shall include methods of providing technical assistance to States and criteria for awarding financial assistance under this section. The Secretary may make use of contractors and experts for any or all of the studies and findings called for in this section. (2XA) The Institute shall enter into cooperative agreements with State technology extension services to— (i) demonstrate methods by which the States can, in cooperation with Federal agencies, increase the use of Federal technology by businesses within their States to improve industrial competitiveness; or (ii) help businesses in their States take advantage of the services and information offered by the Regional Centers for the Transfer of Manufacturing Technology created under section 25 of the Act of March 3,1901. (B) Any State, for itself or for a consortium of States, may submit to the Secretary an application for a cooperative agreement under this subsection, in accordance with procedures established by the Secretary. To qualify for a cooperative agreement under this subsec- PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1437- tion, a State shall provide adequate assurances that it will increase its spending on technology extension services by an amount at least equal to the amount of Federal assistance. (C) In evaluating each application, the Secretary shall consider— (i) the number and types of addUtional businesses that will be assisted under the cooperative agreement; (ii) the extent to which the State extension service will demonstrate new methods to increase the use of Federal technology; (iii) geographic diversity; and (iv) the abUity of the State to maintain the extension service after the cooperative agreement has expired. (D) States which are party to cooperative agreements under this subsection may provide services directly or may arrange for the provision of any or all of such services by institutions of higher education or other non-profit institutions or organizations. (3) In carrying out section 26 of the Act of March 3,1901, and this subsection, the Secretary shall coordinate the activities with the Federal Laboratory Consortium; the National Technical Information Service; the National Science Foundation; the Office of Productivity, Technol(^, and Innovation; the Small Business Administration; and other appropriate Federal agencies. (4) There are authorized to be appropriated for the purposes of this subsection $2,000,000 for each of the fiscal years 1989,1990, and 1991. (5) Cooperative agreements entered into under paragraph (2) shall terminate no later than September 30,1991. (c) FEDERAL TECHNOLOGY TRANSFER ACT OP 1986.—Nothing in sections 25 or 26 of the Act of March 3,1901, or in subsection (b) of this section shall be construed as limiting the authorities contained in the Federal Technology Transfer Act of 1986 (Public Law 99-502). (d) NON-ENERGY INVENTIONS RIOGRAM.—The Act of March 3,1901, as amended by this part, is further amended by adding after section 26 the following new section: Appropriation authorization. Contracts. Termination datt 15 u s e 278/ note. NON-ENERGY INVENTIONS PROGRAM "SEC. 27. In conjunction with the initial organization of the In- 15 use 278m. stitute, the Director shall establish a program for the evaluation of inventions that are not enei^-related to complement but not replace the Energy-Related Inventions Program established under section 14 of the Federal Nonnuclear Energy Research and Development Act of 1974 (Public Law 93-577). The Director shall submit an initial implementation plan for this program to accompany the organization plan for the Institute. The implementation plan shall include specific cost estimates, implementation schedules, and mechanisms to help finance the development of technologies the program has determined to have potentisd. In the preparation of the plan, the Director shall consult with appropriate Federsd agencies, including the Small Business Administration and the Department of Energy, State and local government organizations, university officials, £md private sector organizations in order to obtein advice on how those agencies and organizations might cooperate with the expansion of this program of the Institute.". SEC. 5122. CLEARINGHOUSE ON STATE AND LOCAL INITIATIVES. (a) CLEARINGHOUSE.—The Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3701 et seq.) is amended— 102 STAT. 1438 15 use 3705-3708, 3710-37lOd, 3711, 3711a, 3712-3714. 15 u s e 3704a. PUBLIC LAW 100-418—AUG. 23, 1988 V (1) by redesignating sections 6 through 19 as sections 7 through 20, respectively; and (2) by inserting after section 5 the following new section: "SEC. 6. CLEARINGHOUSE FOR STATE AND LOCAL INITIATIVES ON PRODUCTIVITY, TECHNOLOGY, AND INNOVATION. "(a) ESTABLISHMENT.—^There is established within the Office of Productivity, Technology, and Innovation a Clearinghouse for State and Local Initiatives on Productivity, Technology, and Innovation. The Clearinghouse shall serve as a central repository of information on initiatives by State and local governments to enhance the competitiveness of American business through the stimulation of productivity, technology, and innovation and Federal efforts to assist State and local governments to enhance competitiveness. "(b) RESPONSIBILITIBS.—^The Clearinghouse may— "(1) establish relationships with State and local governments, and r ^ o n a l and multistate organizations of such governments, which carry out such initiatives; *(2) collect information on the nature, extent, and effects of such initiatives, particularly information useful to the Congress, Federal agencies. State and local governments, regional and multistate organizations of such governments, businesses, and the public throughout the United States; "(3) disseminate information collected under paragraph (2) through reports, directories, handbooks, conferences, and seminars; "(4) provide technical assistance and advice to such governments with respect to such initiatives, including assistance in determining sources of assistance from Federal agencies which may be available to support such initiatives; ' (5) study ways in which Federal agencies, including Federal laboratories, are able to use their existing policies and programs to assist State and local governments, and regional and multistate organizations of such governments, to enhance the competitiveness of American business; "(6) make periodic reconunendations to the Secretary, and to other Federal agencies upon their request, concerning modifications in Federal policies and programs which would improve Federal assistance to State and local technology and business assistance programs; "(7) develop methodol<^es to evaluate State and local programs, and, when requested, advise State and local governments, and r ^ o n a l and multistate organizations of such governments, as to which prc^ams are most effective in ''- enhancing the competitiveness of American business through •- the stimulation of productivity, technology, and innovation; and "(8) make use of, and disseminate, the nationwide study of State industrial extension programs conducted by the Secretary. "(c) CONTRACTS.—In canying out subsection (b), the Secretary may enter into contracts for the purpose of collecting information on the nature, extent, and effects of initiatives. "(d) TRIENNIAL REPORT.—The Secretary shall prepare and transmit to the Congress once each 3 years a report on initiatives by State and local governments to enhance the competitiveness of American businesses through the stimulation of productivity, technol(^y, and innovation. The report shall include recommendations to the Presi- PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1439 dent, the Congress, and to Federal agencies on the appropriate Federal role in stimulating State and local efforts in this area. The first of these reports shall be transmitted to the Congress before January 1,1989.'\ (b) DEFINITION.—Section 4 of such Act is amended by adding at the 15 USC 3703. end thereof the following new paragraph: "(13) 'Clearinghouse' means the Clearinghouse for State and Local Initiatives on Productivity, Technology, and Innovation established by section 6.". (c) CONFORMING AMENDMENT.—Section 10(d) of such Act, as so redesignated by section 5122(a)(1) of this part, is amended by strik- 15 USC 3708. ing "6, 8,10,14,16, or 17" and inserting in lieu thereof "7, 9, 11,15, 17, or 18". Subpart C—Advanced Technology Program SEC. 5131. ADVANCED TECHNOLOGY. (a) ADVANCED TECHNOLOGY PROGRAM.—The Act of March 3,1901, as amended by this part, is further amended by adding after section 27 the following new section: "ADVANCED TECHNOLOGY PROGRAM "SEC. 28. (a) There is established in the Institute an Advanced 15 use 278n. Technology Program (hereafter in this Act referred to as the 'Program') for the purpose of assisting United States businesses in creating and applying the generic technology and research results necessary to— "(1) commercialize significant new scientific discoveries and technologies rapidly; and "(2) refine manufacturing technologies. The Secretary, acting through the Director, shall assure that the Program focuses on improving the competitive position of the United States and its businesses, gives preference to discoveries and to technologies that have great economic potential, and avoids providing undue advantage to specific companies. "Ot>) Under the Program established in subsection (a), and consistent with the mission and policies of the Institute, tlie Secretary, acting through the Director, and subject to subsections (c) and (d), may— "(1) aid United States joint research and development ventures (hereafter in this section referred to as 'joint ventures') (which may also include universities and independent research organizations), including those involving collaborative technology demonstration projects which develop and test prototype equipment and processes, through— "(A) provision of organizational and technical advice; and "(B) participation in such joint ventures, if the Secretary, acting through the Director, determines participation to be appropriate, which may include (i) partial start-up funding, (ii) provision of a minority share of the cost of such joint ventures for up to 5 years, and (iii) making available equipment, facilities, and personnel, provided that emphasis is placed on areas where the Institute has scientific or technological expertise, on solving generic problems of specific industries, and on making those industries more competitive in world markets; 102 STAT. 1440 Contracts. Federal Register, publication. Reports. Contracts. Contracts. PUBLIC LAW 100-418—AUG. 23, 1988 "(2) enter into contracts and cooperative agreements with United States businesses, especially smedl businesses, and with independent research organizations, provided that emphasis is placed on applying the Institute's research, research techniques, and expertise to those organizations' research programs; "(3) involve the Federal laboratories in the Program, where appropriate, using among other authorities the cooperative research and development sigreements provided for under section 12 of the Stevenson-Wydler Technology Innovation Act of 1980; and "(4) carry out, in a manner consistent with the provisions of this section, such other cooperative research activities with joint ventures as may be authorized by law or assigned to the Program by the Secretary. "(c) The Secretary, acting through the Director, is authorized to take all actions necessary and appropriate to establish and operate the Program, including— "(D publishing in the Federal Register draft criteria and, no later than six months after the date of the enactment of this section, following a public comment period, final criteria, for the selection of recipients of assistance under subsection (b) (1) and (2); "(2) monitoring how technologies developed in its research program are used, and reporting annually to the Congress on the extent of any overseas transfer of these technologies; "(3) establishing procedures regarding financial reporting and auditing to ensure that contracts and awards are used for the purposes specified in this section, are in accordance with sound accounting practices, and are not funding existing or planned research programs that would be conducted in the same time period in the absence of financial assistance under the Program; "(4) assuring that the advice of the Committee established under section 10 is considered routinely in carrying out the responsibilities of the Institute; and "(5) providing for appropriate dissemination of Program research results. "(d) When entering into contracts or making awards under subsection (b), the following shall apply: "(1) No contract or award may be made until the research project in question has been subject to a merit review, and has, in the opinion of the reviewers appointed by the Director and the Secretary, acting through the Director, been shown to have scientific and technical merit. "(2) In the case of joint ventures, the Program shall not make an award unless, in the judgnient of the Secretary, acting through the Director, Federal aid is needed if the industry in question is to form a joint venture quickly. "(3) No Federal contract or cooperative agreement under subsection 0)X2) shall exceed $2,000,000 over 3 years, or be for more than 3 years unless a full and complete explanation of such proposed award, including reasons for exceeding these limits, is submitted in writing by the Secretary to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Science, Space, and Technology of the House of Representatives. The proposed contract or cooperative agreement may be executed only after 30 calendar days on which both Houses of Congress are in session have elapsed since such submission. Federal funds made available under subsec- PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1441 tion (bX2) shall be used only for direct costs and not for indirect costs, profits, or management fees of the contractor. "(4) In determining whether to make an award to a particular joint venture, the Program shall consider whether the members of the joint venture have made provisions for the appropriate participation of small United States businesses in such joint venture. "(5) Section 552 of title 5, United States Code, shall not apply to ^ e following information obtained by the Federal Government on a confidential basis in connection with the activities of any business or any joint venture receiving funding under the Program— "(A) information on the business operation of any member of the business or joint venture; and "(B) tiade secrets possessed by any business or any member of the joint venture. "(6) Intellectual property owned and developed by any business or joint ventiu« receiving funding or by any member of such a joint venture may not be disclosed by any officer or employee of the Federal Government except in accordance with « written agreement between the owner or developer and the Program. "Cf) The Federal Government shall be entitled to a share of the licensing fees and royalty payments made to and retained by any business or joint venture to which it contributes under this section in an amount proportional to the Federal share of the costs incurred by the business or joint venture as determined by independent audit. "(8) If a business or joint venture fails before the completion of the period for which a contract or award has been made, after all allowable costs have been paid and appropriate audits conducted, the unspent balance of the Federal funds shall be returned by the recipient to the Pn^ram. "(9) Upon dissolution of any joint venture or at the time otherwise agreed upon, the Federal Government shall be entitled to a share of the residual assets of the joint venture proportional to the Federal share of the costs of the joint venture as determined by independent audit. "(e) As used in this section, the term 'joint research and development venture' has the meaning given to such term in section 2(aX6) of the National Cooperative Research Act of 1984 (15 U.S.C. 4301(aX6)).". Clsissified information. Copyrights. Patents and trademarks. Classified information. (b) VismNG COMMITTEE ON ADVANCED TBCHNOIJOGY.—Section 10 of the Act of March 3,1901, is amended to read as follows: VISITING OOMMirTEE ON ADVANCED TECHNOLOGY "SEC. 10. (a) There is established within the Institute a Visiting Establishment. Committee on Advanced Technology (hereafter in this Act referred 15 u s e 278. to as the 'Committee'). The CJommittee shall consist of nine members appointed by the Director, at least five of whom shall be from United States industry. The Director shall appoint as original members of the Committee any final members of the National Bureau of Standards Visiting Committee who wish to serve in such capacity. In addition to any powers and functions otherwise granted to it by this Act, the Committee shall review and make recommendations r^arding general policy for the Institute, its organization, its 102 STAT. 1442 PUBLIC LAW 100-418—AUG. 23, 1988 budget, and its programs- within the framework of applicable national policies as set forth by the President and the Congress. "(b) TTie persons appointed as members of the Committee— "(1) shall be eminent in fields such as business, research, new product development, engineering, labor, education, management consulting, environment, and international relations; "(2) shall be selected solely on the basis of established records of distinguished service; "(3) shall not be employees of the Federal Government; and "(4) shall be so selected as to provide representation of a cross-section of the traditional and emerging United States industries. The Director is requested, in making appointments of persons as members of the Committee, to give due consideration to any recommendations which may be submitted to the Director by the National Academies, professional societies, business associations, labor associations, and other appropriate organizations. "(cXD The term of office of each member of the Committee, other than the original members, shall be 3 years; except that any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term. Any person who has completed two consecutive full terms of service on the Committee shall thereafter be ineligible for appointment during the one-year period following the expiration of the second such term. "(2) The original members of the Committee shall be elected to three classes of three members each; one class shall have a term of one year, one a term of two years, and the other a term of three years. "(d) The (Committee shall meet at least quarterly at the call of the Chairman or whenever one-third of the members so request in writing. A majority of the members of the Committee not having a conflict of interest in the matter being considered by the Committee shall constitute a quorum. Each member shall be given appropriate notice, whenever possible, not less than 15 days prior to any meeting, of the call of such meeting. (e) The Committee shall have an executive committee, and may delegate to it or to the Secretary such of the powers and functions granted to the Committee by this Act as it deems appropriate. The dlommittee is authorized to appoint &om among; its. members such "" other committees as it deems necessary, and to assign to committees so appointed such survey and advisory functions as the Committee deems appropriate to assist it in exercising its powers and functions under this Act. "(f) The election of the Chairman and Vice Chairman of the Committee shall take place at each annual meeting occurring in an even-numbered year. The Vice Chairman shall perform the duties of the Chairman in his absence. In case a vacancy occurs in the chairmanship or vice chairmanship, the Committee shall elect a member to fill such vacancy. "(g) The Committee may, with the concurrence of a mayority of its members, permit the appointment of a staff consisting of not more than four professional staff members and such clerical staff members as may be necessary. Such staff shall be appointed by the Director, after consultation with the Chairman of the Committee, and assigned at the direction of the Committee. The professional members of such staff may be appointed without regard to the PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1443 provisions of title 5, United States Code, governing appointments in the competitive service and the provisions of chapter 51 of title 5 of such Code relating to classification, and compensated at a rate not exceeding the appropriate rate provided for individuals in grade GS18 of the General Schedule under section 5332 of title 5 of such Code, as may be necessary to provide for the performance of such duties as may be prescribed by the Committee in connection with the exercise of its powers and functions under this Act. "(hXD The Committee shall render an annual report to the Sec- Reports retary for submission to the Congress on or before January 31 in each year. Such report shall deal essentially, though not necessarily exclusively, with policy issues or matters which affect the Institute, including the Program established under section 28, or with which the Committee in its official role as the private sector policy advisor of the Institute is concerned. Each such report shall identify areas of research and research techniques of the Institute of potential importance to the long-term competitiveness of United States industry, in which the Institute possesses special competence, which could be used to assist United States enterprises and United States industrial joint research and development ventures. "(2) The Committee shall render to the Secretary and the Con- Reports. gress such additional reports on specific policy matters as it deems appropriate.". (c) NATIONAL ACADEMIES OF SCIENCES AND ENGINEERING STUDY OF GOVERNMENT-INDUSTRY COOPERATION IN CIVIUAN TECHNOLOGY.—(1) Within 90 days after the date of enactment of this Act, the Secretary of Commerce shall enter into contracts with the National Academies of Sciences and Engineering for a thorough review of the various types of arrangements under which the private sector in the United States and the Federal Government cooperate in civilian research and technology transfer, including activities to create or apply generic, nonproprietary technologies. The purpose of the review is to provide the Secretary and Congress with objective information regarding the uses, strengths, and limitations of the various types of cooperative technology arrangements that have been used in the United States. The review is to provide both an analysis of the ways in which these arrangements can help improve the technological performemce and international competitiveness of United States industry, and also to provide the Academies' recommendations regarding ways to improve the effectiveness and efficiency of these types of cooperative arrangements. A special emphasis shall be placed on discussions of these subjects among industry leaders, labor leaders, and officials of the executive branch and Congress. The Secretary is authorized to seek and accept funding for this study from both Federal agencies and private industry. (2) The members of the review panel shall be drawn from among industry and labor leaders, entrepreneurs, former government officials with great experience in civilian research and technology, and scientific and technical experts, including experts with experience with Federal laboratories. (3) The review shall analyze the strengths and weaknesses of different t)rpes of Federal-industry cooperative arrangements in civilian technology, including but not limited to— (A) Federal programs which provide technical services and information to United States companies; Contracts. 15 u s e 278n note. 102 STAT. 1444 Reports. PUBLIC LAW 100-418—AUG. 23, 1988 (B) cooperation between Federal laboratories and United States companies, including activities under the Technology Share Program created by Executive Order 12591; (C) Federal research and technology transfer arrangements with selected business sectors; (D) Federal encouragement of, and assistance to, private joint research and development ventures; and (E) such other mechanisms of Federal-industry cooperation as may be identified by the Secretary. (4) A report based on the findings and recommendations of the review panel shall be submitted to the Secretary, the President, and Congress within 18 months after the Secretary s i ^ s the contracts with the National Academies of Sciences and Engineering. Subpart D—Technology Reviews SEC. 5141. REPORT OF PRESIDENT. The President shall, at the time of submission of the budget request for fiscal year 1990 to Congress, also submit to the Congress a report on— (1) the President's policies and budget proposals regarding Federal research in semiconductors and semiconductor manufacturing technology, including a discussion of the respective roles of the various Federal departments and agencies in such research; (2) the President's policies and budget proposals regarding Federal research and acquisition policies for fiber optics and optical-electronic technologies generally; (3) the President's policies and budget prop<^als, identified by agency, regarding superconducting materials, including descriptions of research priorities, the scientific and technical barriers to commercialization which such research is designed to overcome, steps taken to ensure coordination among Federal agencies conducting research on superconducting materials, and steps taken to consult with private United States industry and to ensure that no unnecessary duplication of research exists and that all important scientific and technical barriers to the commercialization of superconducting materials will be addressed; and (4) the President's policies and budget proposals, identified by agency, regarding Federal research to assist United States industry to develop and apply advanced manufacturing technologies for the production of durable and nondurable goods. National Advisory SEC. 5142. SEMICONDUCTOR RESEARCH AND DEVELOPMENT. ^« (a) SHORT TTTLE.—This section may be cited as the Committee on Semiconductor National Advisory Committee on Semiconductor Research and Development Research and Act of 1988". (b) FINDINGS AND PURPOSES.—(1) that— Ac^onSr^ 15 u s e 4632. The Congress finds and declares (A) semiconductor technology is pla3dng an ever-increasing role in United States industrial and commercial products and processes, making secure domestic sources of state-of-the-£ut semiconductors highly desirable; (B) modem weapons systems are highly dependent on leading edge semiconductor devices, and it is counter to the nationsd PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1445 security interest to be heavily dependent upon foreign sources for this technology, (C) governmental responsibilities related to the semiconductor industry are divided among many Federal departments and agencies; and (D) joint industry-government consideration of semiconductor industry problems is needed at this time. (2) The purposes of this section are— (A) to establish the National Advisory Committee on Semiconductors; and (B) to assign to such Committee the responsibility for devising and promulgating a national semiconductor strategy, including research and development, the implementation of which will assure the continued leadership of the United States in semiconductor technology. (c) CREATION OF CoiaoTTEE.—^There is hereby created in the executive branch of the Government an independent advisory body to be known as the National Advisory Committee on Semiconductors (hereafter in this section referred to as the "Committee"). (d)FuNcnoNS.—(1) The Committee shall— (A) collect and analyze information on the needs and capabilities of industry, the Federal Government, and the scientific and research communities related to semiconductor technol<^y; (B) identify the components of a successful national semiconductor strat^QT in accordance with subsection (bX2XB); (O analyze options, establish priorities, and rea)mmend roles for participants in the national strat^y; (D) assess the roles for government and national laboratories and other laboratories supported laigely for government purposes in contributing to flie semiconductor technolt^y base of the Nation, as well as to access the effective use of the resources of United States private industry, United States universities, and private-pubUc research and development efforts; and (E9 provide results and recommendations to agencies of the Federal Government involved in l^islative, policymaking, administrative, management, planning, and technology activities that affect or are part of a national semiconductor strategy, and to the industry and other nongovernmental groups or oiganizations affected by or contributing to that strat^y. (2) In fulfilling this respoMibility, the Committee shall— (A) monitor the competitiveness of the United States semiconductor technology base; (B) determine technical areas where United States semiconductor technology is deficient relative to international competition; (Q identify new or emeiging semiconductor technologies that will impact the national defense or United States competitiveness or both; (D) develop research and development strategies, tactics, and plans whose execution will assure United Stat^ semiconductor competitiveness; and (E) recommend appropriate actions that support the national semiconductor strategy. (e) MEMBERSHIP AND PROCEDURES.—(IXA) The Committee shall be composed of 13 members, 7 of whom shall constitute a quorum. (B) The Secretary of Defense, the Secretary of Commerce, the Secretary of Energy, the Director of the Omce of Science and . 102 STAT. 1446 PUBLIC LAW 100-418—AUG. 23, 1988 Technology Policy, and the Director of the National Science Foundation, or their designees, shall serve as members of the Committee. President of U.S. (C) The President, acting through the Director of the Office of Science and Technology Policy, shall appoint, as additional members of the Committee, 4 members from outside the Federal Government who are eminent in the semiconductor industry, and 4 members from outside the Federal Government who are eminent in the fields of technology, defense, and economic development. (D) One of the members appointed under subparagraph (C), as designated by the President at the time of appointment, shall be chairman of the Committee. (2) Funding and administrative support for the Committee shall be provided to the Office of Science and Technology Policy through an arrangement with an appropriate agency or organization designated by the Committee, in accordance with a memorandum of understanding entered into between them. (3) Members of the Committee, other than full-time employees of the Federal Government, while attending meetings of the Committee or otherwise performing duties at the request of the Chairman while away from their homes or regular places of business, shall be allowed travel expenses in accordance with subchapter I of chapter 57 of title 5, United States Code. (4) The Chairman shall call the first meeting of the Committee not later than 90 days after the date of the enactment of this Act. Reports. (5) At the close of each fiscal year the Committee shall submit to the President and the Congress a report on its activities conducted during such year and its planned activities for the coming year, including specific findings and recommendations with respect to the national semiconductor strategy devised and promulgated under subsection (b)(2)(B). The first report shall include an analysis of those technical areas, including manufacturing, which are of importance to the United States semiconductor industry, and shall make specific recommendations regarding the appropriate Federal role in correcting any deficiencies identified by the analysis. Each report shall include an estimate of the length of time the Committee must continue before the achievement of its purposes and the issuance of its final report. (f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out the purposes of this section such sums as may be necessary for the fiscal years 1988, 1989, and 1990. 30 u s e 1803 SEC. 5143. REVIEW OF RESEARCH AND DEVELOPMENT PRIORITIES IN note. SUPERCONDUCTORS. President of U.S. (a) NATIONAL COMMISSION ON SUPERCONDUCTIVITY.—The President shall appoint a National Commission on Superconductivity to review all major policy issues regarding United States applications of recent research advances in superconductors in order to assist the Congress in devising a national strategy, including research and development priorities, the development of which will assure United States leadership in the development and application of superconducting technologies. Ob) MEMBERSHIP.—The membership of the National Commission on Superconductivity shall include representatives of— (1) the National Critical Materials Council, the National Academy of Sciences, the National Academy of Engineering, the National Science Foundation, the National Aeronautics and Space Administration, the Department of Energy, the Depart- '*te!*S«*-- PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1447 merit of Justice, the Department of Commerce (including the National Institute of Standards and Technology), the Department of Transportation, the Department of the Treasury, and the Department of Defense; (2) organizations whose membership is comprised of physicists, engineers, chemical scientists, or material scientists; and (3) industries, universities, and national laboratories engaged in superconductivity research. (c) CHAIRMAN.—A representative of the private sector shall be designated as chairman of the Commission. (d) COORDINATION.—The National Critical Materials Council shall be the coordinating body of the National Commission on Superconductivity and shall provide staff support for the Commission. (e) REPORT.—Within 6 months after the date of the enactment of this Act, the National Commission on Superconductivity shall submit a report to the President and the Congress with recommendations regarding methods of enhancing the research, development, and implementation of improved superconductor technologies in all major applications. (f) SCOPE OF REVIEW,—In preparing the report required by subsec- tion (e), the Commission shall consider addressing, but need not limit, its review to— (1) the state of United States competitiveness in the development of improved superconductors; (2) methods to improve and coordinate the collection and dissemination of research data relating to superconductivity; (3) methods to improve and coordinate funding of research and development of improved superconductors; (4) methods to improve and coordinate the development of viable commercial and military applications of improved superconductors; (5) foreign government activities designed to promote research, development, and commercial application of improved superconductors; (6) the need to provide increased Federal funding of research and development of improved superconductors; (7) the impact on the United States national security if the United States must rely on foreign producers of superconductors; (8) the benefit, if any, of granting private companies partial exemptions from United States antitrust laws to allow them to coordinate research, development, and products containing improved superconductors; (9) options for providing income tax incentives for encouraging research, development, and production in the United States of products containing improved superconductors; and (10) methods to strengthen domestic patent and trademark laws to ensure that qualified superconductivity discoveries receive the fullest protection from infringement. (g) SUNSET.—The Commission shall disband within a year of its establishment. Thereafter the National Critical Materials Council may review and update the report required by subsection (e) and make further recommendations as it deems appropriate. 102 STAT. 1448 PUBLIC LAW 100-418—AUG. 23, 1988 Subpart E—Authorization of Appropriations SEC. 5151. AUTHORIZATION OF APPROPRIATIONS FOR TECHNOLOGY ACTIVITIES. (a) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated for fiscal year 1988 to the Secretary of CJommerce to carry out activities performed by the Institute the sums set forth in the following line items: (1) Measurement Research and Technology: $41,939,000. (2) Engineering Measurements and Manufacturing: $40,287,000. (3) Materials Science and Engineering: $23,521,000. (4) Computer Science and Technology: $7,941,000. (5) Research Support Activities: $19,595,000. (6) Cold Neutron Source Facility: $6,500,000 (for a total authorization of $13,000,000). (7) Programs established under sections 25, 26, and 27 of the Act of March 3, 1901 and section 5121 of this part: $5,000,000. 0)) LIMITATIONS.—Notwithstanding any other provision of this or any other Act— (1) of the total of the amounts authorized under subsection (a), $2,000,000 is authorized only for steel technology; (2) of the amount authorized under paragraph (1) of subsection (a) of this section, $3,550,000 is authorized only for the purpose of research in process and quality control; (3) of the amount authorized under paragraph (2) of subsection (a) of this section, $3,710,000 is authorized only for the Center for Building Technology, $5,662,000 is authorized only for the Center for Fire Research, and the two Centers shall not be merged; (4) of the amount authorized under paragraph (3) of subsection (a) of this section, $1,500,000 is authorized only for the purpose of research to improve high-performance composites; and (5) of the amount authorized under paragraph (5) of subsection (a) of this section, $7,371,000 is authorized only for technical competence fund projects in new areas of high technical importance, and $1,091,000 is authorized only for the Postdoctoral Research Associates Program and related new personnel. (c) TRANSFER.—-(1) Funds may be transferred among the line items listed in subsection (a) of this section so long as the net funds transferred to or from any line item do not exceed 10 percent of the amount authorized for that line item in such subsection and the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Science, Space, and Technology of the House of Representatives are notified in advance of any such transfer. (2) In addition, the Secretary of Commerce may propose transfers to or from any line item exceeding 10 percent of the amount authorized for the line item in subsection (a) of this section, but a full and complete explanation of any such proposed transfer and the reason for such transfer must be transmitted in writing to the President of the Senate, the Speaker of the House of Representatives, and the appropriate authorizing committees of the Senate and House of Representatives. The proposed transfer may be made only when 30 calendar days have passed after the transmission of such written explanation. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1449 (d) COLD NEUTRON SOURCE FACILITY.—^In addition to any sums otherwise authorized by this part, there are authorized to be appropriated to the Secretary of Commerce for fiscal years 1988,1989, and 1990 such sums as were authorized but not appropriated for the Cold Neutron Source Facility for fiscal year 1987. Furthermore, the Gifts and Secretary may accept contributions for funds, to remain available property. until expended, for the design, construction, and equipment of the Cold Neutron Source Facility, notwithstanding the limitations of section 14 of the Act of March 3,1901 (15 U.S.C. 278d). (e) E^MPLOTEE BENEFIT ADJUSTMENTS.—^In addition to any sums otherwise authorized by this part, there are authorized to be appropriated to the Secretary of Commerce for fiscal year 1988 such additional sums as may be necessary to make any adjustments in salary, pay, retirement, and other employee benefits which may be provided for by law. (f) AVAILABILITY.—^Appropriations made under the authority provided in this section shall remain available for obligation, for expenditure, or for obligations and expenditure for periods specified in the Acts making such appropriations. SEC 5152. STEVENSON-WYDLER ACT AUTHORIZATIONS. 15 u s e 3713. Section 19 (a) and (b) of the Stevenson-Wydler Technolc^y Innovation Act of 1980, as so redesignated by section 5122(aXl) of this part, is amended to read as follows: "(aXD There is authorized to be appropriated to the Secretary for the purposes of carrying out sections 5,11(g), and 16 of this Act not to exceed $3,400,000 for the fiscal year ending September 30, 1988. "(2) Of the amount authorized under paragraph (1) of this subsection, $2,400,000 is authorized only for the Office of Productivity, Technology, and Innovation; $500,000 is authorized only for the purpose of carrying out the requirements of the Japanese technical literature program established under section 5(d) of this Act; and $500,000 is authorized only for the patent licensing activities of the National Technical Information Service. "(b) In addition to the authorization of appropriations provided under subsection (a) of this section, there is authorized to be appropriated to the Secretary for the purposes of carrying out section 6 of this Act not to exceed $500,000 for the fiscal year ending September 30, 1988, $1,000,000 for the fiscal year ending September 30, 1989, and $1,500,000 for the fiscal year ending September 30, 1990.". Subpart F—^Miscellaneous Technology and Commerce Provisions SEC 5161. SAVINGS PROVISION AND USER FEES. The Act of March 3, 1901 (15 U.S.C- 271 et seq.), as amended by this part, is further amended by adding after section 28 the following new sections: "SAVINGS PROVISION "SEC. 29. All rules and r^ulations, determinations, standards, Contracts. contracts, certifications, authorizations, delegations, results and 15 u s e 271 note. findings of investigations, or other actions duly issued, made, or taken by or pursuant to this Act, or under the authority of any other statutes which resulted in the assignment of functions or activities to the Secretary, the Department, the Director, or the Institute, as 102 STAT. 1450 PUBLIC LAW 100-418—AUG. 23, 1988 are in effect immediately before the date of enactment of this section, and not suspended by the Secretary, the Director, the Institute or the courts, shall continue in full force and effect after the date of enactment of this section until modified or rescinded. "USER FEES 15 use 278o. 15 u s e 282a. "SEC. 30. The Institute shall not implement a policy of charging fees with respect to the use of Institute research facilities by research associates in the absence of express statutory authority to charge such fees.". SEC. 5162. MISCELLANEOUS AMENDMENTS TO THE STEVENSON-WYDLER ACT. (a) INVENTION MANAGEMENT SERVICES.—The first sentence of section 14(aX4) of the Stevenson-Wydler Technology Innovation Act of 1980, as so redesignated by section 5122(aXl) of this part (15 U.S.C. 3710c) is amended by striking out "shall" and inserting in lieu thereof "may", and by striking out "such invention performed at the request of the other agency or laboratory" and inserting in lieu thereof "any invention of the other agency . 0)) FEDERAL LABORATORY Ck)NSORTiUM.—Section ll(eX7XA) of the Stevenson-Wydler Technology Innovation Act of 1980, as so redesignated by section 5122(aXl) of this part (15 U.S.C. 3710) is amended by striking out "0.005 percent of that portion of the research and development budget of each Federal agency that is to be utilized by" and inserting in lieu thereof "0.008 percent of the budget of each Federal agency from any Federal source, including related overhead, that is to be utilized by or on behalf of'. SEC. 5163. MISCELLANEOUS TECHNOLOGY AND COMMERCE PROVISIONS. (a) ASSESSMENT OF EMERGING TECHNOLOGIES.—The Board of Assessment of the National Institute of Standards and Technology shall include, as part of its annual review, an assessment of emerging technologies which are expected to require research in metrology to keep the Institute abreast of its mission, including process and quality control, engineering databases, advanced materials, electronics and fiber optics, bioprocess engineering, and advanced computing concepts. Such review shall include estimates of the cost of the required effort, required staffing levels, appropriate interaction with industry, including technology transfer, and the period over which the research will be required. 15 use 272 note. (b) SMALL BUSINESS PLAN.—The Director of the National Institute of Standards and Technology shall prepare a plan detailing the manner in which the Institute will make small businesses more aware of the Institute's activities and research, and the manner in which the Institute will seek to increeise the application by small businesses of the Institute's research, particularly in manufacturing. The plan shall be submitted to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Science, Space, and Technology of the House of Representatives not later than 12() days after the date of the enactment of this Act. (c) NATIONAL TECHNICAL INFORMATION SERVICE.—(1) Section 11 of 15 use 3710. the Stevenson-Wydler Technology Innovation Act of 1980, as so redesignated by section 5122(aXl) of this part, is amended by inserting at the end the following new subsection: PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1451 "(h) None of the activities or functions of the National Technical Contracts. Information Service which are not performed by contractors as of September 30,1987, shall be contracted out or otherwise transferred from the Federal Government unless such transfer is expressly authorized by statute, or unless the value of all work performed under the contract and related contracts in each fiscal year does not exceed $250,000.". (2) The Secretary of Commerce shall report the Secretary's rec- Reports. ommendations for improvements in the National Technical Information Service (including methods for automating document distribution and inventory control), and any statutory changes required to make such improvements, to the Ck)mmittee on Commerce, Science, and Transportation of the Senate and the Committee on Science, Space, and Technology of the House of Representatives by January 31,1989. (3) Section 11(d) of the Stevenson-Wydler Technoli^y Innovation Act of 1980, as so redesignated by section 5122(aXl) of this part, is 15 use 37io. amended— (A) by striking "and" at the end of paragraph (4); (B) by striking the period at the end of paragraph (5) and inserting in lieu thereof "; and"; and iO by adding at the end thereof the following new paragraph: "(6) maintain a permanent archival repository and clearinghouse for the collection and dissemination of nonclassified scientific, technical, and engineering information.", (d) FELLOWSHIP PROGRAM.—There is established within the 15 use 1533. Department of Commerce a Commerce, Science, and Technology Fellowship Program with the stated purpose of providing a select group of employees of the executive branch of the Government vdth the opportunity of learning how the l^islative branch and other parts of the executive branch function through work experiences of up to one year. The Secretary of (Commerce shall report to the Reports. Congress within six months after the date of enactment of this Act on tbe Department of Commerce's plans for implementing such Program by March 31,1989. SEC 5164. METRIC USAGE. (a) FINDINGS.—Section 2 of the Metric Conversion Act of 1975 is 15 use 205a. amended by adding at the end thereof the following new paragraphs: "(3) World trade is increasingly geared towards the metric system of measurement. "(4) Industry in the United States is often at a competitive disadvantage when dealing in international markets because of its nonstandard measurement system, and is sometimes excluded when it is unable to deliver goods which are measured in metric terms. "(5) The inherent simplicity of the metric system of measurement and standardization of weights and measures has led to major cost savings in certain industries which have converted to that system. "(6) The Federal Government has a responsibility to develop procedures and techniques to assist industry, especially small business, as it voluntarily converts to the metric system of measurement. 102 STAT. 1452 15 u s e 205b. 15 u s e 205k. Reports. 15 u s e 205J-1. PUBLIC LAW 100-418—AUG. 23, 1988 "(7) The metric system of measurement can provide substantial advantages to the Federal Government in its own operations.". (b) PoucY.—Section 3 of the Metric (Conversion Act of 1975 is amended to read as follows: "SEC. 3. It is therefore the declared policy of the United States— "(1) to designate the metric system of measurement as the preferred system of weights and measures for United States trade and commerce; "(2) to require that each Federal agency, by a date certain and to the extent economically feasible by the end of the fiscal year 1992, use the metric system of measurement in its procurements, grants, and other business-related activities, except to the extent that such use is impractical or is likely to cause significant inefficiencies or loss of markets to United States firms, such as when foreign competitors are producing competing products in non-metric units; "(3) to seek out ways to increase understanding of the metric system of measurement through educational information and guidance and in Government publications; and "(4) to permit the continued use of traditional systems of weights and measures in nonbusiness activities.". (c) IMPLEMENTATION.—The Metric Conversion Act of 1975 is further amended by redesignating section 12 as section 13, and by inserting after section 11 the following new section: "SEC. 12. (a) As soon as possible after the date of the enactment of this section, each agency of the Federal Government shall establish guidelines to carry out the policy set forth in section 3 (with particular emphasis upon the policy set forth in paragraph (2) of that section), and as part of its annual budget submission for each fiscal year beginning after such date shall report to the Congress on the actions which it has taken during the previous fiscal year, as well as the actions which it plans for the fiscal year involved, to implement fully the metric system of measurement in accordance with that policy. Such reporting shall cease for an agency in the fiscal year after it has fully implemented its efforts under section 3(2). As used in this section, the term 'agency of the Federal Grovernment' means an Executive agency or military department as those terms as defined in chapter 1 of title 5, United States Code. "(b) At the end of the fiscal year 1992, the Comptroller General shall review the implementation of this Act, and upon completion of such review shall report his findings to the Congress along with any legislative recommendations he may have.". PART II—SYMMETRICAL ACCESS TO TECHNOLOGICAL RESEARCH SEC. 5171. SYMMETRICAL ACCESS TO TECHNOLOGICAL RESEARCH. Copyrights. Patents and trademarks. (a) Section 502 of the Foreign Relations Authorization Act, Fiscal Year 1979 (22 U.S.C. 2656b) is amended by adding at the end the following new paragraph: "(5) Federally supported international science and technology agreements should be negotiated to ensure that— "(A) intellectual property rights are properly protected; and PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1453 "(B) access to research and development opportunities and facilities, and the flow of scientific and technological information, are, to the maximum extent practicable, equitable and reciprocfid.". (b) Section 5030t)) of the Foreign Relations Authorization Act, Fiscal Year 1979 (22 U.S.C. 2656c(b)) is amended— (1) by striking "Congress" and inserting in lieu thereof "the Speaker of the House of Representatives and the Committees on Foreign Relations and Governmental Affairs of the Senate"; (2) by inserting "information and" before "recommendations"; (3) by striking "and" at the end of paragraph (1); (4) by striking the period at the end of paragraph (2) and inserting in lieu thereof "; and"; and (5) by adding at the end the following new paragraph: "(3) equity of access by United States public and private entities to public (and publicly supported private) research and development opportunities and faculties in each country which is a major trading partner of the United States.". (c) Section 503 of the Foreign Relations Authorization Act, Fiscal Year 1979 (22 U.S.C. 2656c) is amended by adding at the end the following new subsection: "(dXD The information and recommendations developed under subsection (bX3) shall be made available to the United States Trade Representative for use in his consultations with Federal agencies pursuant to Executive orders pertaining to the transfer of science and technology. "(2) In providing such information and recommendations, the President of U.S. President shall utilize information developed by any Federal departments, agencies, or interagency committees as he may consider necessary.". (d) Section 504(a) of the Foreign Relations Authorization Act, Fiscal Year 1979 (22 U.S.C. 2656d(a)) is amended to read as follows: "(aXl) In order to implement the policies set forth in section 502 of this title, the Secretary of State (hereadfter in this section referred to as the "Secretary") shall have primary responsibility for coordination and oversight with respect to all major science or science and technolc^ agreements and activities between the United States and foreign countries, international orgemizations, or commissions of which the United States and one or more foreign countries are members. "(2) In coordinating and overseeing such agreements and activities, the Secretary shall consider (A) scientific merit; (B) equity of access as described in section 503(b); (C) possible commercial or trade linkages with the United States which may flow from the agreement or activity; (D) national security concerns; and (E) any other factors deemed appropriate. "(3) Prior to entering into negotiations on such an agreement or activity, the Secretary shall provide Federal agencies which have primary responsibility for, or substantial interest in, the subject matter of the agreement or activity, including those agencies responsible for— "(A) Federal technology management policies set forth by Public Law 96-517 and the Stevenson-Wydler Technology Innovation Act of 1980; "(B) national security policies; Defense and "(C) United States trade policies; and national "^ 19-194 O-91-Part 2 15 : QL ; security. 102 STAT. 1454 PUBLIC LAW 100-418—AUG. 23, 1988 "(D) relevant Executive orders, with an opportunity to review the proposed agreement or activity to ensure its consistency with such policies and Elxecutive orders, and to ensure effective interagency coordination/'. PART III—NATIONAL CRITICAL MATERIALS COUNaL 30 u s e 1804 note. SEC 5181. THE NATIONAL FEDERAL PROGRAM PLAN FOR ADVANCED MATERIALS RESEARCH AND DEVELOPMENT. The National Critical Materials Council shall prepare the national Federal program plan for advanced materials research and development under section 205(aXlXA) of the National Critical Materials Act of 1984 (Public Law 98-373; 98 Stat. 1251) and shall submit such plan to Congress not later than 180 days after the date of the enactment of this Act The plan shall be submitted to the Committee on Science, Space, and Technology, as well as other appropriate committees, of the House of Representatives, and to the Ck>mmittee on Governmental Affairs, as well as other appropriate oonunittees, of the Senate. 30 u s e 1807 note. SEC 5182. PERSONNEL MATTERS. (a) RBQUISEMENT TO iNCimASE STAFF.—^Not later than 30 days after the date of the enactment of this Act, the Executive Director of the National Critical Materials Council shall increase the number of employees of the Council by the equivalent of 5 full-time employees over tiie number of employees of the Council on the date of the enactment of this Act (b) QUALIFICATIONS OF STAFF.—Not less than the equivalent of 4 full-time employees appointed pursuant to subsection (a) shall be permanent professional employees who have expertise in technical fields that are relevant to the responsibilities of the National Critical Materials Council, such as materials science and engineering, environmental matters, minerals and natural resources, ceramic or composite engineering, metallurgy, and geology. SEC 5183. ACTHORITT TO ACCEPT SERVICES AND PERSONNEL FROM OTHER FEDERAL AGENCIES. 30 u s e 1809. Section 21(K4) of the National Critical Materials Act of 1984 (PubUc Law 98-373; 98 Stat 1254) is amended by striking out "reimbursable" and inserting in lieu thereof "nonreimbursable". SEC 5184. AUTHORIZATION OF APPROPRIATIONS. 30 u s e 1810. eompetitiveness Policy eouncil Act. 15 u s e 4801 note. Section 211 of the National Critical Materials Act of 1984 (Public Law 98-373; 98 Stat 1254) is amended by striking out "1990" and inserting in lieu thereof "1992". Subtitle C—Competitiyeness Policy Council Act SEC 5201. SHORT TITLE. This subtitle may be cited as the "(Competitiveness Policy Council Act". PUBLIC LAW 100-418—AUG. 23, 1988 SEC. 5202. FINDINGS AND PURPOSES. 102 STAT. 1455 15 USC 4801. (a) FINDINGS.—The Congress finds that— (1) efforts to reverse the decline of United States industry has been hindered by— (A) a serious erosion in the institutions and policies which foster United States competitiveness including a lack of high quality domestic and international economic and scientific data needed to— (i) reveal sectoral strengths eind weaknesses; (ii) identify potential new markets and future technolo^cal and economic trends; and (iii) provide necessary information regarding the competitive strategies of foreign competitors; (B) the lack of a coherent and consistent government competitiveness policy, including policies with respect to— (i) international trade, finance, and investment, (ii) research, science, and technology, (iii) education, labor retraining, and adjustment, (iv) macroeconomic and budgetary issues, (v) antitrust and regulation, and (vi) government procurement; (2) the United States economy benefits when business, labor, government, academia, and public interest groups work together cooperatively; (3) the decline of United States economic competitiveness endangers the ability of the United States to maintain the defense industrial base which is necessary to the national security of the United States; (4) the world is moving rapidly toward the creation of an integrated and interdependent economy, a world economy in which the policies of one nation have a major impact on other nations; (5) integrated solutions to such issues as trade and investment research, science, and technology, education, and labor retraining and adjustments help the United States compete more effectively in the world economy; and (6) government, business, labor, academia, and public interest groups shall cooperate to develop and coordinate long-range strategies to help assure the international competitiveness of the United States economy. (b) PURPOSE.—It is the purpose of this subtitle— (1) to develop recommendations for long-range strategies for promoting the international competitiveness of the United States industries; and (2) to establish the Competitiveness Policy Council which shall— (A) analyze information regarding the competitiveness of United States industries and business and trade policy; (B) create an institutional forum where national leaders with experience and background in business, labor, government, academia, and public interest activities shall— (i) identify economic problems inhibiting the competi- Agriculture and tiveness of United States agriculture, business, and agricultural industry; commodities. (ii) develop long-term strategies to address such problem; and 102 STAT. 1456 is use 4802. 15 u s e 4803. PUBLIC LAW 100-418—AUG. 23, 1988 (C) make recommendations on issues crucial to the development of coordinated competitiveness strategies; (D) publish analysis in the form of periodic reports and recommendations concerning the United States business and trade policySEC. 5203. COUNCIL ESTABLISHED. There is established the Competitiveness Policy Council (hereafter in this subtitle referred to as the "Council"), an advisory committee under the provisions of the Federal Advisory Committee Act (5 U.S.C. App.). SEC. 5204. DUTIES OF THE COUNCIL. The Council shall— (1) develop recommendations for national strategies and on specific policies intended to enhance the productivity and international competitiveness of United States industries; (2) provide comments, when appropriate, and through any existing comment procedure, on— (A) private sector requests for governmental assistance or relief, specifically as to whether the applicant is likely, by receiving the assistance or relief, to become internationally competitive; and (B) what actions should be taken by the applicant as a condition of such assistance or relief to ensure that the applicant is likely to become internationally competitive; (3) analyze information concerning current and future United States economic competitiveness useful to decision making in government and industry; (4) create a forum where national leaders with experience and background in business, labor, academia, public interest activities, and government shall identify and develop recommendations to address problems affecting the economic competitiveness of the United States; (5) evaluate Federal policies, regulations, and unclassified international agreement on trade, science, and technology to which the United States is a party with respect to the impact on United States competitiveness; (6) provide policy recommendations to the Congress, the President, and the Federal departments and agencies regarding specific issues concerning competitiveness strategies; (7) monitor the changing nature of research, science, and technology in the United States and the changing nature of the United States economy and its capacity— (A) to provide marketable, high quality goods and services in domestic £uid international markets; and (B) to respond to international competition; (8) identify— (A) Federal and private sector resources devoted to increased competitiveness; and (B) State and local government programs devised to enhance competitiveness, including joint ventures between universities and corporations; (9) establish, when appropriate, subcouncils of public and private leaders to develop recommendations on long-term strategies for sectors of the economy and for specific competitiveness issues; PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1457 (10) review policy recommendations developed by the subcouncils and transmit such recommendations to the Federal agencies responsible for the implementation of such recommendations; (11) prepare, publish, and distribute reports containing the recommendations of the Council; smd (12) publish their analysis and recommendations in the form Reports. of an annual report to the President and the Congress which also comments on the overall competitiveness of the American economy. SEC. 5205. MEMBERSHIP. (a) COMPOSITION AND REPRESENTATION.— (1) The (Douncil shall consist of 12 members, of whom— (A) four members shall be appointed by the President, of whom— (i) one shall be a national leader with experience and background in business; (ii) one shall be a national leader with experience and background in the labor community; (iii) one shall be a national leader who has been active in public interest activities; and (iv) one shall be a head of a Federal department or agency; (B) four members shall be appointed by the majority leader and the minority leader of the Senate, acting jointly, ^ of whom— (i) one shall be a national leader with experience or background in business; (ii) one shall be a nationsd leader with experience and background in the labor community; (iii) one shall be a national leader with experience and background in the academic community; and (iv) one shall be a representative of State or local government; and (C) four members shall be appointed by the Speaker, the minority leader of the House of Representatives, acting ' jointly, of whom— (i) one shall be a national leader with experience and background in business; (ii) one shall be a national leader with experience and background in the labor community; (iii) one shall be a nationcd leader with experience and background in the academic community; and (iv) one shall be a representative of State or local government. (2) In addition to the head of a Federal department or agency appointed in accordance with subsection (aXlXA)(iv), other Federal officials may participate on an ex-officio basis as requested by the Council. (3) All members of the Council shall be individuals who have a broad understanding of the United States economy and the United States competitive position internationally. (4) Not more than 6 members of the Council shall be members of the same political party. (b) INPHAL APPOINTMENTS.—The initial members of the Council shall be appointed within 30 days after January 21,1989. 15 USC 4804. 102 STAT. 1458 PUBLIC LAW 100-418—AUG. 23, 1988 (c) VACANCIES.— (1) A vacancy on the Council shall be filled in the same manner in which the original appointment was made. (2) Any member appointed to fill a vacancy on the Council '• occurring before the expiration of the term for which the predecessor of such member was appointed shall be appointed only ' for the remainder of such term. (3) A member of the Council may serve after the expiration of the term of such member until the successor of such member has taken office. (d) REMOVAL.—^Members of the Council may be removed only for malfeasance in office. (e) CoNFUCT OF INTEREST.— (1) A member of the Council may not serve as an agent for a foreign principal. (2) Members of the Council shall be required to file a financial disclosure report under title II of the Ethics in Government Act of 1978 (Public Law 95-521), except that such reports shall be held confidential and exempt from any law otherwise requiring their public disclosure. (3) Members of the Council shall be deemed to be special (jovemment employees, as defined in section 202 of title 18, United States Code, for purposes of sections 201, 202, 203, 205, and 208 of such title. (f) COICPENSATION.— (1) Each member of the Council who is not employed by the Federal Government or any State or local government— (A) shall be compensated at a rate equal to the daily equivalent of the rate for GS-18 of the General Schedule pursuant to section 5332 of title 5, United States Code, for each day such member is engaged in duties as a member of the Council; and (B) shall be paid actual travel expenses, and per diem in lieu of subsistence expenses when away from the usual place of residence of such member, in accordance with section 5703 of such title. (2) Each member of the Council who is employed by the Federal Grovemment or any State or local government shall serve on the Council without additional compensation, but while engaged in duties as a member of the Council shall be paid actual travel expenses, and per diem in lieu of subsistence expenses when away from the usual place of residence of such member, in accordance with subchapter I of chapter 57 of title 5, United States Code. (g) QUORUM.— (1) I N GENERAL.—Seven members of the Council constitute a quorum, except that a lesser number may hold hearings if such action is approved by a two-thirds vote of the entire Council. (2) INITIAL ORGANIZATION.—The Council shall not commence its duties until aU the nongovernmental members have been appointed and have qualified. (h) CHAIRPERSON.—^The Council shall elect, by a two-thirds vote of the entire Council, a chairperson from among the nongovernmental members. (i) MEETINGS.—^The Council shall meet at the call of the chairperson or a majority of the members. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1459 (j) PoucY ACTIONS.—Except as provided in subsection (g), no action establishing policy shall be taken by the Council unless approved by two-thirds of the entire membership of the Council. (k) ALTERNATE MEMBERS.— (1) Each member of the Council shall designate one alternate representative to attend any meeting that such member is unable to attend. (2) In the course of attending any such meeting, an alternate representative shall be considered a member of the Council for all purposes, except for voting. (1) EXPERTS AND CONSULTANTS.—The Council may procure temporary and intermittent services under section 3109(b) of title 5, United States Code, but at rates for individuals not to exceed the daily equivalent of the maximum annual rate of basic pay for GS-16 of the General Schedule. (m) DETAILS.—Upon request of the Council, the head of any other Federal agency is authorized to detail, on a reimbursable basis, any of the personnel of such agency to the Council to assist the Council in carrying out its duties under this subtitle. SEC. 5206. EXECUTIVE DIRECTOR AND STAFF. 15 u s e 4805. (a) EXECUTIVE DIRECTOR.— (1) The principal administrative officer of the Council shall be an Executive Director, who shall be appointed by the Council and who shall be paid at a rate not to exceed GS-18 of the General Schedule. (2) The Executive Director shall serve on a full-time basis. (b) STAFF.—(1) Within the limitations of appropriations to the Council, the Executive Director may appoint a staff for the Council in accordance with the Federal civil service and classification laws. (2) The staff of the Council shall be deemed to be special government employees as defined in section 202 of title 18, United States Code, for purposes of title II of the Ethics in Government Act of 1978 and sections 201, 202, 203, 205, 207, and 208 of title 18, United States Code. SEC. 5207. POWERS OF THE COUNCIL. 15 u s e 4806. (a) HEARINGS.—The Council may, for the purpose of carrying out the provisions of this subtitle, hold such hearings, sit and act at such times and places, take such testimony, and receive such evidence, as the Council considers appropriate. The Council may administer oaths or afQrmations to witnesses appearing before the Council. (b) INFORMATION.— dXA) Except as provided in subparagraph (B), the Council may secure directly from any Federal agency information necessary to enable the Council to carry out the provisions of this subtitle. Upon request of the chairman of the Council, the head of such agency shall promptly furnish such information to the Council. (B) Subparagraph (A) does not apply to matters that are specifically authorized under criteria established by an Executive order to be kept secret in the interest of national defense or foreign policy and are in fact properly classified pursuant to such Executive order. (2) In any case in which the Council receives £my information from a Federal agency, the Council shall not disclose such Classified information. Defense and national security. 102 STAT. 1460 PUBLIC LAW 100-418—AUG. 23, 1988 information to the public unless such agency is authorized to disclose such information pursuant to Federal law. Reports. (d) CONSULTATION WITH THE PRESIDENT AND THE CONGRESS.—No later than 60 days after the initial members are appointed to the Council, the Council shall submit a report to the President, the Senate Grovernmental Affairs Committee, and the appropriate committees of the House of Representatives and of the Senate, that proposes the type and scope of activities the Council shall undertake, including the extent to which the Council will coordinate activities with other advisory committees relating to trade and competitiveness in order to maximize the effectiveness of the Council. (e) GIFTS.—The Council may accept, use, and dispose of gifts or donations of services or property. (D USE OF THE MAILS.—The Council may use the United States mails in the same manner and under the same conditions as other Federal agencies. (g) ADMINISTRATIVE AND SUPPORT SERVICES.—The Administrator of (jeneral Services shall provide to the Council, on a reimbursable basis, such administrative and support services as the Council may request. (h) SUBCOUNCILS.— Termination date. (1) The Council may establish, for such period of time as the Council determines appropriate, subcouncils of public and private leaders to analyze specific competitive issues. (2) Any such subcouncil shall include representatives of business, labor, government, and other individuals or representatives of groups whose participation is considered by the Council to be important to developing a full understanding of the subject with which the subcouncil is concerned. (3) Any such subcouncil shall include a representative of the Federal Government. (4) Any such subcouncil shall assess the actual or potential competitiveness problems facing the industry or the specific policy issues with which the subcouncil is concerned and shall formulate specific recommendations for responses by business, government, and labor— (A) to encourage adjustment and modernization of the industry involved; (B) to monitor and facilitate industry responsiveness to opportunities identified under section 52080)X1XB); (C) to encourage the ability of the industry involved to compete in markets identified under section 520803X1XC); or (D) to alleviate the problems in a specific policy area facing more than one industry. (5) Any discussion held by any subcouncil shall not be considered to violate any Federal or State antitrust law. (6) Any discussion held by any subcouncil shall not be subject to the provisions of the Federal Advisory Committee Act, except that a Federal representative shall attend all subcouncil meetings. (7) Any subcouncil shall terminate 30 days after making recommendations, unless the Council specifically requests that the subcouncil continue in operation. (i) APPUCABIUTY OF ADVISORY COMMITTEE ACT.—The provisions of subsections (e) and (f) of section 10, of the Federal Advisory Committee Act shall not apply to the Council. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1461 SEC. 5208. ANNUAL REPORT. 15 USC 4807. (a) SUBMISSION OP REPORT.—The Council shall annually prepare and submit to the President, the Senate Governmental Affairs Committee, and the appropriate Committees of the House of Representatives and the Senate a report setting forth— (1) the goals to achieve a more competitive United States economy; (2) the policies needed to meet such goals; (3) a summary of existing policies of the Federal (Jovernment or State and local governments significantly affecting the competitiveness of the United States economy; and (4) a summary of significant economic and technological developments, in the United States and abroad, affecting the competitive position of United States industries. (b) CONTENTS OP REPORT.—The report submitted under subsection (a) shall— (1) identify and describe actual or foreseeable developments, in the United States and abroad, which— (A) create a significant likelihood of a competitive challenge to, or of substantial dislocation in, an established United States industry; (B) present significant opportunities for United States industries to compete in new geographical markets or product markets, or to expand the position of such industries in established markets; or (C) create a significant risk that United States industries shall be unable to compete successfully in significant markets; (2) specify the industry sectors affected by the developments described in the report under paragraph (1); and (3) contain a statement of the findings and recommendations of the Council during the previous fiscal year, including any recommendations of the Council for (a) such legislative or administrative actions as the Council considers appropriate, and 0>) including the elimination, consolidation, reorganization of government agencies especiallv such agencies that specifically deal with research, science, technology, and international trade. (c) REPORT BY CONGRESSIONAL COMMITTEES.—The Council shall consult with each committee to which a report is submitted under this section and after such consultation, each such committee shall submit to its respective House a report setting forth the views and recommendations of such committee with respect to the report of the Council. SEC. 5209. AUTHORIZATION OF APPROPRIATIONS. 15 USC 4808. There are authorized to be appropriated for each of the fiscal years 1989 and 1990 such sums as mav be necessary not to exceed $5,000,000 to carry out the provisions or this subtitle. SEC. 5210. DEFINITIONS. For purposes of this subtitle— (1) the term "Council" means the Competitiveness Policy Council established under section 5203; (2) the term "member" means a member of the Competitiveness Policy Council; (3) the term "United States" means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, 15 USC 4809. 102 STAT. 1462 ^ ^ PUBLIC LAW 100-418—AUG. 23, 1988 Guam, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, American Samoa, and any other territory or possession of the United States; and (4) the term "agent of a foreign principal" is defined as such term is defined under subsection (d) of the first section of the Foreign Agents Registration Act of 1938 (22 U.S.C. 611) subject to the provisions of section 3 of such Act (22 U.S.C. 613). Subtitle D—Federal Budget Competitiveness Impact Statement SEC. 5301. PRESIDENT'S ANNUAL BUDGET SUBMISSION. Subsection (a) of section 1105 of title 31, United States Code, is amended by inserting at the end thereof the following new paragraph: "(26) an analysis, prepared by the Office of Management and Budget after consultation with the chairman of the Council of Economic Advisers, of the budget's impact on the international competitiveness of United States business and the United States balance of payments position and shall include the following projections, based upon the best information available at the time, for the fiscal year for which the budget is submitted— "(A) the amount of borrowing by the Government in private credit markets; "(B) net domestic savings (defined as personal savings, corporate savings, and the fiscal surplus of State and local governments); "(C) net private domestic investment; "(D) the merchandise trade and current accounts; "(E) the net increase or decrease in foreign indebtedness (defined as net foreign investment); and "(F) the estimated direction and extent of the influence of the Government's borrowing in private credit markets on United States dollar interest rates and on the real effective exchange rate of the United States dollar.". SEC. 5302. ANNUAL CONCURRENT RESOLUTION ON THE BUDGET. Subsection (e) of section 301 of the Congressional Budget Act of 1974 (2 U.S.C. 632(e)) is amended by "and" at the end of paragraph (8), by striking out the period and by inserting "; and" at the end of paragraph (9), and by inserting at the end thereof the following new paragraph: "(10) an analysis, prepared after consultation with the Director of the Congressional Budget Office, of the concurrent resolution's impact on the international competitiveness of United States business and the United States balance of payments position and shall include the following projections, based upon the best information available at the time, for the fiscal year covered by the concurrent resolution— "(A) the amount of borrowing by the Government in private credit markets; "(B) net domestic savings (defined as personal savings, corporate savings, and the fiscal surplus of State and local governments); "(C) net private domestic investment; PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1463 "(D) the merchandise trade and current accounts; "(E) the net increase or decrease in foreign indebtedness (defined as net foreign investment); and "(F) the estimated direction and extent of the influence of the Government's borrowing in private credit markets on United States dollar interest rates and on the real effective exchange rate of the United States dollar.". SEC. 5303. EFFECTIVE DATE. 31 USC 1105 The amendment made by section 5301 shall be effective for fiscal years 1989, 1990, 1991, and 1992, and shall be fully reflected in the budgets submitted by the President as required by section 1105(a) of title 31, United States Code, for each such fiscal year, and the amendment made by section 5302 shall be effective for fiscal years 1989,1990,1991, and 1992. Subtitle E-^Trade Data and Studies PART I—NATIONAL TRADE DATA BANK SEC. 5401. DEFINITIONS. For purposes of this subtitle— (1) the term "CJommittee" means the Interagency Trade Data Advisory Committee; (2) the term "Data Bank" means the National Trade Data Bank; (3) the term "Executive agency" has the same meaning as in section 105 of title 5, United States Code; (4) the term "export promotion data system" means the data system known as the Commercial Information Management System which is maintained and operated by the United States and Foreign C!ommercial Service and is established as part of the Data Bank under section 3816; (5) the term "international economic data system" means the data system established as part of the Data Bank under section 5406 which contains data useful to polic3miakers and analysis concerned with international economics; and (6) the term "Secretary" means the Secretary of Commerce. SEC. 5402. INTERAGENCY TRADE DATA ADVISORY COMMITTEE. (a) EsTABUSHMENT.—There is established the Interagency Trade Data Advisory Committee. Ok)) MEMBERSHIP.—The Committee shall consist of— (1) the United States Trade Representative; (2) the Secretary of Agriculture; (3) the Secretary of Defense; (4) the Secretary of Commerce; (5) the Secretary of Labor; (6) the Secretary of the Treasury; (7) the Secretary of State; (8) the Director of the Of^ce of Management and Budget; (9) the Director of Central Intelligence; (10) the (Dhairman of the Federal Reserve Board; (11) the Chairman of the International Trade C!ommission; (12) the President of the Export-Import Bank; 15 USC 4901. 15 USC 4902. 102 STAT. 1464 PUBLIC LAW 100-418—AUG. 23, 1988 (13) the President of the Overseas Private Investment Corporation; and (14) such other members as may be appointed by the : President from full-time officers or employees of the Federal Government. (c) C^HAiRBCAN.—The Secretary of Commerce shall be Chairman of the (}onmiittee. (d) DESIGNEES.—^Any member of the Committee may appoint a designee to serve in place of such member on the (Dommittee. 15 u s e 4903. SEC 5403. FUNCTIONS OF THE COMMITTEE. The Conmiittee shall advise the Secretary of Ck)mmerce, as appropriate, on the establishment, structure, contents, and operation of a National Trade Data Bank in accordance with section 5406 in order to assure the timely collection of accurate data and to provide the private sector and government officials efficient access to economic and trade data collected by the Federal (government for purposes of policymaking and export promotion. 15 u s e 4904. SEC 5404. CONSULTATION WITH THE PRIVATE SECTOR AND GOVERNMENT OFFICIALS. The Secretary shall r^ularly consult with representatives of the private sector and officiads of State and local governments to assess the adequacy of United States trade information. The Secretary shall seek reconmiendations on how trade information can be made more accessible, understandable, and relevant. The Secretary shall seek recommendations as to what data should be included in the export promotion data system in the Data Bank. 15 u s e 4905. SEC 5405. COOPERATION AMONG EXECUTIVE AGENCIES. Each, executive agency shall furnish to the Secretary such information for inclusion in the National Trade Data Bank as the Secretary, in consultation with the Advisory dbnmiittee, considers necessary to the operation of the Data Bank. 15 u s e 4906. Classified information. SEC 5406. ESTABUSHMENT OF THE DATA BANK. (a) ESTABLISHMENT.—^Within 2 years after the date of the enactment of this Act, the Secretary of Commerce shall establish the Data Bank. The Secretary shall manage the Data Bank. The Data Bank shall consist of two data systems, to be designated the International Economic Data System, as described in subsection (b) and the Export Promotion Data System, as described in subsection (c). (b) INTERNATIONAL ECONOMIC DATA SYSTEM.—The International EoDnomic Data System shall include current and historical information determined by the Secretary to be useful (after the consultation required by section 5404) to policymakers and analysts concerned with international economics and trade and which shall include data compile or obtained by appropriate executive agencies. Such information shall not identify parties to transactions. Such information may include data for the United States and countries with which the United States has important economic relations including— (1) data on imports and exports, including— (A) aggregate import and export data for the United States and for each foreign country; (B) industry-specific import and export data for each foreign country; PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1465 (C) product and service specific import and export data for the United States; (D) market penetration information; and (E) foreign destinations for exports of the United States; (2) data on international service transactions; (3) information on international capital markets, including— (A) interest rates; and (B) average exchange rates; (4) information on foreign direct investment in the United States economy; (5) international labor market information, including— (A) wage rates for major industries; (B) international unemplojrment rates; and (C) trends in international labor productivity; (6) information on foreign government policies affecting trade, including— (A) trade barriers; and (B) export financing policies; (7) import and export date for the United States on a State-byStete basis aggregated at the product level including— (A) date concerning the country shipping the import, the Stete of first destination, and the original part of entry for imports of goods and, to the extent possible, services; and (B) date concerning the Stete of the exporter, the port of departure, and the country of first destination for export of goods and, to the extent possible, services; and (8) any other economic and trade date collected by the Federal Government that the Secretly determines to be useful in carrjdng out the purposes of this subtitle. (c) EXPORT PROMOTION DATA SYSTEM.—The export promotion date Classified system shall include date and information collected by the Federal ^formation. Government on the industrial sectors and markets of foreign countries which are determined by the Secretery (after consultetion required by section 5404) to be of the greatest interest to United Stetes business firms that are engaged in export-related activities and to Federal and Stete agencies that promote exports, while providing for the confidentiality of proprietery business information, and shall be designed to use the most effective means of disseminating date and information electronically through the Department, or Department-designated offices, or through other available date bases in an accurate and timely manner. Such date system shall monitor, organize, and disseminate selected information on— (1) specific business opportunities in foreign countries; (2) specific industrial sectors within foreign coimtries with high export potential such as— (A) size of the market; (B) distribution of products; (C) competition; (D) significant applicable laws, regulations, specifications, and standards; (E) appropriate government officials; and (F) trade associations and other contact points; and (3) foreign countries generally, such as— (A) the general economic conditions; (B) common business practices; (C) significant teriff and trade barriers; and 102 STAT. 1466 PUBLIC LAW 100-418—AUG. 23, 1988 (D) other significant laws and regulations regarding imports, licensing, and the protection of intellectual property; (4) export financing information, including the availability, through public sources of funds for United States exporters and foreign competitors; (5) transactions involving barter and countertrade; and (6) any other similar information, that the Secretary determines to be useful in carrying out the purposes of this subtitle. 15 u s e 4907. SEC. 5407. OPERATION OF THE DATA BANK. The Secretary shall manage the Data Bank to provide the most appropriate data retrieval system or systems possible. Such system or systems shall— (1) be designed to utilize data processing and retrieval technology in monitoring, organizing, analyzing, and disseminating the data and information contained in the Data Bank; (2) use the most effective and meaningful means of organizing and making such information available to— (A) United States Government policymakers; (B) United States business firms; (C) United States workers; (D) United States industry associations; (E) United States agricultural interests; (F) State and local economic development agencies; and (G) other interested United States persons who could benefit from such information; (3) be of such quality and timeliness and in such form as to £issist coordinated trade strategies for the United States; and (4) facilitate dissemination of information through nonprofit organizations with significant outreach programs which complement the regional outreach programs of the United States and Foreign Commercial Service. 15 u s e 4908. SEC. 5408. INFORMATION ON THE SERVICE SECTOR. (a) SERVICE SECTOR INFORMATION.—The Secretary shall ensure that, to the extent possible, there is included in the Data Bank information on service sector economic activity that is as complete and timely as information on economic activity in the merchandise sector. (b) SURVEY.—The Secretary shall undertake a new benchmark survey of service transactions, including transactions with respect to— (1) banking services; (2) information services, including computer software services; (3) brokerage services; (4) transportation services; (5) travel services; (6) engineering services; (7) construction services; and (8) health services. (c) GENERAL INFORMATION AND INDEX OF LEADING INDICATORS.— The Secretary shall provide— (1) not less than once a year, comprehensive information on the service sector of the economy; and (2) an index of leading indicators which includes the measurement of service sector activity in direct proportion to the con- ; PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1467 tribution of the service sector to the gross national product of the United States. SEC 5409. EXCLUSION OF INFORMATION. 15 USC 4909. The Data Bank shall not include any information— (1) the disclosure of which to the public is prohibited under any other provision of law or otherwise authorized to be withheld under other provision of law; or (2) that is specifically authorized under criteria established by statute or an Executive order not to be disclosed in the interest of national defense or foreign policy and are in fact properly classified pursuant to such Ebcecutive order. SEC 5410. NONDUPUCATION. 15 USC 4910. The Secretary shall ensure that information systems created or developed pursuant to this subtitle do not unnecessarily duplicate information systems available fix>m other Federal agencies or from the private sector. SEC 5411. COLLECTION OF DATA. 15 USC 4911. Except as provided in section 5408, nothing in this subtitle shall be considered to grant independent authority to the Federal Government to ooUect any data or information from individuals or entities outside of the Federal Government. SEC 5412. FEES AND ACCESS. 15 USC 4912. The Secretary shall provide reasonable public services and access (including elecbt>nic access) to any information maintained as part of the Data Bank and may charge reasonable fees consistent with section 552 of title 5, United Stat^ Code. SEC 5413. REPORT TO CONGRESS. 15 USC 4913. (a) INTERIM REPORT.—^Not more than 1 year after the date of enactment of this Act, the Secretary after consultation with the Advisory Committee shall submit a report to the Governmental AfTairs Committee and the Banking, Housing, and Urban Affairs Committee of the Senate, other appropriate committees of the Senate, and the House of Representatives describii^ actions taken pursuant to this subtitle, particularly— (1) actions taken to provide the information on services described in section 5408; and (2) actions taken to provide State-by-State information as described in section 5406(bX7). (b) FINAL REPORT.—Not more than 3 years after the date of enactment of this Act, the Secretary after consultation with the Advisory Committee shall submit a report to the Governmental Affairs Committee and the Banking, Housing, and Urban Affairs Committee of the Senate, other appropriate committees of the Senate, and the House of Representatives— (1) assessing the current quality and comprehensiveness of, and the ability of the public and of private entities to obtain access to trade data; (2) describing all other actions taken and planned to be taken pursuant to thiis subtitle; (3) including comments by the private sector and by State agencies that promote exports on the implementation of the IkitaBank; 102 STAT. 1468 PUBLIC LAW 100-418—AUG. 23, 1988 (4) describing the extent to which the systems within the Data Bank are being used and any recommendations with regard to the operation of the system; and (5) describing the extent to which United States citizens and firms have access to the data banks of foreign countries that is similar to the access provided to foreign citizens and firms. PART II—STUDIES 2 u s e 194b. Termination date. 15 u s e 4603a. SEC. 5421. COMPETITIVENESS IMPACT STATEMENTS. (a) The President or the head of the appropriate department or agency of the Federal Government shall include in every recommendation or report made to the Congress on legislation which may affect the ability of United States firms to compete in domestic and international commerce a statement of the impact of such legislation on— (1) the international trade and public interest of the United States, and (2) the ability of United States firms engaged in the manufacture, sale, distribution, or provision of goods or services to compete in foreign or domestic markets. (b) This section provides no private right of action as to the need for or adequacy of the statement required by subsection (a). (c) This section shall cease to be effective six years from the date of enactment. SEC. 5422. STUDY AND REPORT BY THE ADVISORY COUNCIL ON FEDERAL PARTICIPATION IN SEMATECH. (a) STUDY AND REPORT.—Not later than February 1, 1989, and annually thereafter for each fiscal year in which appropriated funds are expended for Sematech the Advisory Council on Federsil Participation in Sematech established under section 273(a) of the National Defense Authorization Act for fiscal years 1988 and 1989 (15 U.S.C. 4603(a); Public Law 100-180) shall conduct a study and submit a report to the Governmental Affairs Committee and the Armed Services Committee of the Senate and to appropriate committees of the House of Representatives concerning Federal participation in Sematech. The study and report shall be conducted under the direction of the Under Secretary of Commerce for Economic Affairs. (b) COUNCIL RECOMMENDATIONS AND REPORT.—The Council shall include in the report submitted under subsection (a) the following: (1) identification of potential sources of Federal funding from department and agency budgets for Sematech and recommendations concerning methods and terms of Federal financial participation in Sematech, including grants, loans, loan guarantees, and contributions in kind. The feasibility of methods of Federal recoupment shall also be considered; (2) definition and assessment of continued Federal participation in Sematech including, but not limited to, issues of technology research and development, civilian and defense industrial base objectives and initiatives, and commercialization. The report shall include a summary of the most recent plans, milestones, and cost estimates for Sematech, including any changes and alterations, and shall comment on Sematech's accomplishments and shortfalls in the preceding fiscal year; PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1469 (3) coordination of inter-agency participation, including all matters pertaining to Federal funding and decisionmaking, and other issues regarding Federal participation in Sematech; and (4) any other issues and questions the Council deems appropriate shall be considered. SEC. 5423. IMPACT OF NATIONAL DEFENSE EXPENDITURES ON INTERNATIONAL COMPETITIVENESS. (a) FINDINGS.—The Congress finds that the ability of United States industries to compete in world markets may be adversely affected by the following factors: (1) The allocation of intellectual resources between the private and public sectors. (2) The distribution of innovative research and development between commercial and noncommercial applications. (3) The number of scientific advances which are ultimately commercialized. (4) The cost of capital which is affected by many factors including the budget deficit and defense spending. (b) SENSE OF CONGRESS.—It is the sense of Congress that the President should evaluate the impact on United States competitiveness of— (1) the defense spending by foreign countries, particularly Japan's expenditure of 1 percent of its gross national product for defense compared to the expenditure of the United States of 6 percent of its gross national product, and (2) the other factors listed in subsection (a). TITLE VI—EDUCATION AND TRAINING FOR AMERICAN COMPETITIVENESS SEC. 6001. SHORT TITLE. This title may be cited as the "Education and Training for a Competitive America Act of 1988". SEC. 6002. FINDINGS AND PURPOSE. (a) FINDINGS.—The Congress finds that— (1) the relationship between a strong and vibrant educational system and a healthy nationsQ economy is inseparable in an era in which economic growth is dependent on technology and is imperiled by increased foreign competition; (2) our Nation's once undisputed pre-eminence in international commerce is facing unprecedented challenges from competitor nations who have given priority to the relationship between education and economic growth in areas such as high technology industries; (3) our standing in the international marketplace is being further eroded by the presence in the workforce of millions of Americans who are functionally or technologically illiterate or who lack the mathematics, science, foreign language, or vocational skills needed to adapt to the structural changes occurring in the global economy; (4) our competitive position is also being eroded by declines in the number of students taking advanced courses in mathematics, science, and foreign languages and by the lack of Education and Training for a Competitive America Act of 1988. Disadvantaged persons. Employment and unemployment. Schools and colleges. 20 u s e 5001. 20 u s e 5002. 102 STAT. 1470 Disadvantaged persons. Schools and colleges. Employment and unemployment. 20 u s e 5003. PUBLIC LAW 100-418—AUG. 23, 1988 modern technical and laboratory equipment in our educational institutions; (5) restoring our competitiveness and enhancing our productivity will require that all workers possess basic educational skills and that many others possess highly specific skills in mathematics, science, foreign languages, and vocational areas; and (6) our Nation must recognize the substantial impact that an investment in human capital will have on increasing productivity. (b) PURPOSE.—It is therefore the purpose of this title to establish programs designed— (1) to enhance ongoing efforts in elementary and secondary education; (2) to improve our productivity and competitive position by investing in human capital; (3) to assist out-of-school youth and adults who are functionally illiterate in obtaining the basic skills needed for them to become productive workers in a competitive economy; (4) to help educational institutions prepare those engaged in work relating to mathematics, science, and foreign languages by improving and expanding instruction in those areas and by modernizing laboratory and technical equipment; (5) to enhance the skills of workers affected, or about to be affected, by economic change, in order to prevent dislocation within existing industries and to strengthen emerging domestic industries; and (6) to accomplish such purposes without impairing the availability of funds to carry out existing programs that address the needs of dislocated workers, such as previously authorized education programs. SEC. 6003. DEFINITIONS. As used in this title— (1) The term "foreign language instruction" means instruction in critical foreign languages as defined by the Secretary. (2) The term "institution of higher education" has the same meaning given that term by section 1201(a) of the Higher Education Act of 1965. (3) The terms "local educational agency" and "State educational agency" have the same meaning given such terms under section 198 of the Elementary and Secondary Education Act of 1965. (4) The term "Secretary" means the Secretary of Education. (5) The term "State" means any of the several States, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. 20 u s e 5004. SEC. 6004. GENERAL PROVISIONS. Women. Minorities. Handicapped persons. The Secretary shall ensure, with (a) G R A N T R E Q U I R E M E N T S respect to grants provided under subtitles A and B, that— (1) services assisted by funds received under such grants shall be made available to historically underrepresented and underserved populations of students, including females, minorities, handicapped individuals, individuals with limited English proficiency, and migrant students; PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1471 (2) the terms "training" and "instruction" are interpreted to include training and instruction throi^h telecommunications technologies, including the full range of current and new technologies that can be used for educational purposes, such as television broadcasts, closed circuit television systems, cable television, satellite transmissions, computers, VHS, laser discs, and audio by discs, tapes, or broadcast, and such other video and telecommunications technol(^es that alone or in combination can assist in teaching and learning; and (3) where appropriate, prc^rams funded under subtitles A and B shall be coordinated with other federally funded education and training programs. (b) AoDmoNAL EuGBBLE INSTITUTIONS.—For purposes of any program authorized by subtitle A or B, institutions eligible to participate shall include any accredited proprietary institution providing a program of less than six months duration that is otherwise eligible to participate in any program under subtitle A or B. (c) BUDGET LIMFTATION.—^The Secretary may not make grants or enter into contracts under subtitle A, B, or C except to such extent, or in such amounts, as may be provided in appropriation Acts. Subtitle A—Elementary and Secondary Education State and local governments. CHAPTER 1—MATHEMATICS AND SCIENCE SEC 6005. MATHEMATICS AND SCIENCE EDUCATION REAUTHORIZED. Section 203(b) of the Education for Economic Security Act is 20 use 3963 amended to read as follows: "(b) There are authorized to be appropriated $175,000,000 for the Appropriation authorization. fiscal year 1988 to carry out the provisions of this title.". CHAPTER 2—ADULT LITERACY SEC 6011. WORKPLACE LITERACY PARTNERSHIPS GRANTS (a) ESTABLISHMENT OF GRANT PROGRAM.—The Adult Education Act is amended by inserting after section 315 the following new section: BUSINESS, INDUSTRY, LABOR, AND EDUCATION PARTNERSHIPS FOR WORKPLACE LITERACY "SEC. 316. (a) GRANTS FOR EIXEMPLARY DEMONSTRATION PARTNERSHIPS FOR WORKPLACE LFTERACY.—(1) Subject to subsection (b), the Secretary may make demonstration grants to exemplary education partnerships for workplace literacy to pay the Federal share of the cost of adult education programs which teach literacy skills needed in the workplace through partnerships between— "(A) business, industry, or labor organizations, or private industry councils; and "(B) State educational agencies, local educational agencies, institutions of higher education, or schools (including employment and training agencies or community-based organizations). "(2) Grants under paragraph (1) may be used— 102 STAT. 1472 Children and y°^^^- PUBLIC LAW 100-418—AUG. 23, 1988 "(A) to fund 70 percent of the cost of programs which meet the requirements of paragraph (3); and *(B) for administrative costs incurred by State educational agencies and local educational agencies in establishing programs funded under s u b p a r ^ r a p h (A). "(3) Programs funded under paragraph (2)(A) shall be designed to improve the productivity of the workforce through improvement of literacy skills needed in the workplace by— "(A) providing adult literacy and other basic skills services and activities; "(B) providing adult secondary education services and activities which may lead to the completion of a high school diploma or its equivalent; "(C) meeting the literacy needs of adults with limited English proficiency; "(D) upgrading or updating basic skills of adult workers in accordance with changes in workplace requirements, technology, products, or processes; "(E) improving the competency of adult workers in speaking, listening, reasoning, and problem solving; or "(F) providing education counseling, transportation, and nonworking hours child care services to adult workers while they participate in a program funded under paragraph (2XA). "(4) An application to receive funding for a program out of a grant made to a partnership under this subsection shall— "(A) be submitted jointly by— "(i) a business, industry, or labor organization, or private industry council, and "(ii) a State educational agency, local educational agency, institution of higher education, or school (including an area vocational school, an employment and training agency, or community-based organization); "(B) set forth the respective roles of each member of the partnership; "(C) contain such additional information as the Secretary may require, including evidence of the applicant's experience in providing literacy services to working adults; "(D) describe the plan for carr3dng out the requirements of ' paragraph (3); and "(E) provide assurances that the applicant will use the funds to supplement and not supplant funds otherwise available for the purpose of this section. "(b) GRANTS TO STATES.—(1) Whenever in any fiscal year, appropriations under subsection (c) are equal to or exceed $50,000,000, the Secretary shall make grants to States which have State plans approved by the Secretary under section 306 to pay the Federal share of the cost of adult education programs which teach literacy skills needed in the workplace through partnerships between— "(A) business, industry, or labor organizations, or private industry councils; and "(B) State educational agencies, local educational agencies, institutions of higher education, or schools (including employment and training agencies or community-based organizations). "(2) Grants under paragraph (1) may be used— "(A) to fund 70 percent of the cost of programs which meet the requirements of paragraph (4); PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1473 "(B) for administrative costs incurred by State educational agencies and local educational agencies in establishing programs funded under subparagraph (A); and "(C) for costs incurred by State educational agencies in obtaining evaluations described in paragraph (BXAXiii). "(3) A State shall be eligible to receive its allotment under subsection (e) if it— "(A) includes in a State plan submitted to the Secretary under section 306 a description of— "(i) the requirements for State approval of funding of a program; "(ii) the procedures under which applications for such funding may be submitted; and "(iii) the method by which the State shall obtain annusd third-party eveiluation of student achievement in, and overall effectiveness of services provided by, all programs which receive funding out of a grant made to the State under this section; and "(B) satisfies the requirements of section 306(a). "(4) The program requirements set forth in subsection (aX3), shall apply to the program authorized by this subsection. "(5) An application to receive funding for a program from a grant made to a State under paragraph (1) shall contain the same information required in subparagraphs (A) through (E) of subsection (aX4). "(6) If a State is not eligible for a grant under paragraph (1) of this subsection, the Secretary shall use the State's allotment under paragraph (7) to make direct grants to applicants in that State who are qualified to teach literacy skills needed in the workplace. "(7XA) The Federal share of expenditures for programs in a State funded under this subsection shall be paid from a State's allotment under this paragraph. "(B) From the sum appropriated for each fiscal year under subsection (c) for any fiscal year in which appropriations equal or exceed $50,000,000, the Secretary shall allot— "(i) $25,000 to each of American Samoa, Guam, the Northern Territories, U.S. Mariana Islands, the Trust Territory of the Pacific Islands, and the Virgin Islands; and "(ii) to each remaining State an amount which bears the same ratio to the remainder of such sum as— "(I) the number of adults in the State who do not have a certificate of graduation from a school providing secondary education (or its equivalent) and who are not currently required to be enrolled in schools in the State, bears to "(II) the number of such adults in all States; except that no State shall receive less than $125,000 in any fiscal year. "(C) At the end of each fiscal year, the portion of any State's allotment for that fiscal year which— "(i) exceeds 10 percent of the total allotment for the State under paragraph (2) for the fiscal year; and "(ii) remains unobligated; shall be reallocated among the other States in the same proportion as each State's allocation for such fiscal year under paragraph (2). "(c) AUTHORIZATION OF APPROPRIATIONS.—(1) There are authorized to be appropriated $30,000,000 for the fiscal year 1988, $31,500,000 for the fiscal year 1989. and such sums as may be necessary for the 102 STAT. 1474 20 u s e 1202. PUBLIC LAW 100-418—AUG. 23, 1988 (iscal year 1990 and each succeeding fiscal year ending prior to October 1,1993, to carry out the provisions of this section. "(2) Amounts appropriated under this subsection shall remain available until expend^.". (b) DifviNiTioiffi.—Section 303 of the Adult Education Act is amended by adding at the end the following new subsections: "(k) The term 'community-based organization' has the meaning given such term in section 4(5) of the Job Training Partnership Act (21U5.C.1501etseq.). "(1) The term 'private industry councir means the private industry councU established under section 102 of the Job Training Partnership Act (21 U.S.C-1501 et seq.).". SEC. 6012. ENGLISH LITERACY GRANTS. (a) EsTABUStiMENT OF GRANT PROGRAM.—^The Adult Education Act is amended by inserting after section 316 (as added by section 6011) the following new section: "ENGLISH UTERACT PROGRAM GRANTS Minorities. Community development. Children and youth. Transportation. "SEC. 317. (a) GRANTS TO STATES.—(1) The Secretary may make grants to States which have State plans approved by the Secretary under section 306 for the establishment, operation, and improvement of EInglish literacy pn^rams for individuals of limited English proficiency. Such grants may provide for support services for program participants, including child care and transportation costs. "(2) A State shall be eligible to receive a grant under paragraph (1) if the State includes in a State plan submitted to the Secretary under section 306 a description of— "(A) the number of individuals of limited English proficiency in the State who need or could benefit from programs assisted under this chapter; "(B) the activities which would be undertaken under the grant and the manner in which such activities will promote E^oglish literacy and enable individuals in the State to participate fiilly in national life; "iQ how the activities described in subparagraph (B) will serve individuals of limited English proficiency, including the qualifications and training of personnel who will participate in tiie proposed activities; "(D) the resources necessary to develop and operate the proposed activities and the resources to be provided by the State; and "(E) the specific goals of the proposed activities and how achievement of these goals will be measured. "(3) The Secretary may terminate a grant only if the Secretary determines that— "(A) the State has not made substantial progress in achieving the specific educational goals set out in the application; or "(B) there is no longer a need in the State for the activities funded by the grant. "(b) SET-Asms FOR Ck)MMUNiTY-BASED ORGANIZATIONS.—A State that is awarded a grant under subsection (a) shall use not less than 50 percent of funds awarded under the grant to fund programs operated by community-based oiganizations with the demonstrated capability to administer English proficiency programs. PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1475 "(c) REPORT.—A State that is awarded a grant under subsection (a) shall submit to the Secretary a report describing the activities funded under the grant for each fiscal year covered by the grant. "(d) DEMONSTRATION PROGRAM.—The Secretary, subject to the Contracts, availability of funds appropriated pursuant to this section, shall directly, and through grants and contracts with public and private nonprofit agencies, institutions, and organizations, carry out a program— "(1) through the Adult Education Division to develop innovative approaches and methods of literacy education for individuals of limited English proficiency utilizing new instructional methods and technologies; and "(2) to designate the Center for Applicable Linguistics of the Office of Educational Research and Improvement as a national clearinghouse on literacy education for individuals of limited English proficiency to collect and disseminate information concerning effective approaches or methods, including coordination with manpower training and other education programs. "(e) EVALUATION AND AUDIT.—The Secretary shall evaluate the effectiveness of programs conducted under this section. Programs funded under this section shall be audited in accordance with chapter 75 of title 31, United States Code. "(f) AUTHORIZATION OF APPROPRIATIONS.—(1) There are authorized to be appropriated $25,000,000 for the fiscal year 1988 to carry out this section. "(2) Funds appropriated pursuant to this section shall remain available until expended. "(3) Funds appropriated under this subsection may be combined with other funds made available for the State by the Federal Government for literacy training for individuals with limited English proficiency. "(4) Not more than 10 percent of funds available under this section shall be used to carry out the purposes of subsection (d).". (b) DEFINITIONS.—Section 303 of the Adult Education Act (20 U.S.C. 1201 et seq.) (as amended by section 6011) is amended by adding at the end the following new subsections: "(m) The term 'individual of limited English proficiency' means ~° an adult or out-of-school youth who has limited ability in speaking, reading, writing, or understanding the English language and— (1) whose native language is a language other than English; or "(2) who lives in a family or community environment where a language other than English is the dominant language. "(n) The term 'out-of-school youth' means an individual who is under 16 years of age and beyond the age of compulsory school attendance under State law who has not completed high school or the equivalent. "(o) The term 'English literacy program' means a program of instruction designed to help limited English proficient adults, out-ofschool youths, or both, achieve full competence in the English language. "(p) The term 'community-based organization' means a private organization which is representative of a community or significant segments of a community and which provides education, vocational education, job training, or internship services and programs and includes neighborhood groups and organizations, community action agencies, community development corporations, union-related 102 STAT. 1476 PUBLIC LAW 100-418—AUG. 23, 1988 oiganizations, employer-related organizations, tribal governments, and organizations serving Native Alaskans and Indians.". SEC 6013. LITERACY COORDINATION. (a) FEDERAL LITERACY OFFICE.—The Adult Education Act is amended by inserting after section 317 (as added by section 6012) the following new section: "COORDINATION OF LITERACY PROGRAMS "SEC. 318. (a) FEDERAL LITERACY COORDINATION OFFICE.—The Adult Education Division shall serve as the Federal literacy coordination office. "(b) DUTIES.—The Secretary, through the Division, shall— "(1) coordinate Fedeixd literacy programs, including grant programs administered under this chapter and other grant programs funded under the Adult Education Act (20 U.S.C. 1201 et seq.); and "(2) provide information and guidance to States with respect to the establishment of State and local volunteer pn^rams relating to literacy. "(c) STATE LTTBEIACY (COORDINATION.—To the extent practicable, each State agency designated under section 306(bX2) that receives funds under section 316 or section 317 shall— "(1) designate area offices for coordination of literacy programs, distributed throughout the State so that persons in all areas of the State have access to literacy programs; "(2) train personnel who will operate the area offices; "(3) determine curricula and materials for literacy programs; "(4) oversee area offices; "(5) provide assistance to area offices; "(6) conduct programs to recruit volunteers and participants; "(7) coordinate the programs described in paragraph (6) with existing literacy programs; and "(8) allocate funds to area offices.". SEC 6014. APPLICABILITY PROVISION. The amendments made by this chapter shall not take efTect if the Augustus F. Hawkins-Robert T. Stafford Elementary and Secondary School Improvement Amendments of 1988 is enacted prior to the enactment of this Act. CHAPTER 3—FOREIGN LANGUAGES Foreign Subchapter A—^Foreign Language Assistance Language Assistance Act of SEC 6021. SHORT TITLE. 1988. 20 use 5011. This subchapter may be cited as the "Foreign Language Assistance Act of 1988". 20 u s e 5012. SEC 6022. FINDINGS. The Congress finds that the economic and security interests of this Nation require significant improvement in the quantity and quality of foreign language instruction offered in the Nation's elementary and secondary schools, and Federal funds should be made available to assist the purpose of this subchapter. PUBLIC LAW 100-418—AUG. 23, 1988 SEC 6023. PROGRAM AUTHORIZED. 102 STAT. 1477 20 USC 5013. (a) GENERAL AUTHORITY.—^The Secretary shall make grants to Grants. State educational agencies whose applications are approved under subsection (b) to pay the Federal share of the cost of model programs, designed and operated by local educational agencies, providing for the commencement or improvement and expansion of foreign language study for students. (b) /U>PUCATiON.—^Any State educational agency desiring to receive a grant under this subchapter shall submit an application therefor to the Secretary at such time, in such form, and containing such information and assurances as the Secretary may require. No application may be approved by the Secretary unless the application— (1) contains a description of model p n ^ a m s which— (A) are designed by local educational agencies and are available without r^ard to whether students attend the schools operated by such agency and if the local educational agency determines to do so, are available to residents of the community, (B) represents a variety of alternative and innovative approaches to foreign language instruction, and (C) are selected on a competitive basis by the State educational agency; (2) provides assurances that all children aged 5 through 17 who reside within the school district of the local educational agency shall be eligible to participate in any model program funded under this section (without r^ard to whether such children attend schools operated by such agen(^); (3) provides assurances that the State wUl pay the nonFederal share of the activities for which assistance is sought firom non-Federal sources; and (4) provides that the local educational agency will provide standard evaluations of the proficiency of participants at appropriate intervals in the program which are reliable and valid, and provide such evaluations to the State educational agency. (c) FEDERAL SHARE.—(1) The Federal share for each fiscal year shall be 50 percent. (2) The Secretary may waive the requirement of paragraph (1) for any local educational agency which the Secretary determines does not have adequate resources to pay the non-Federal share of the cost of the project. (d) PARTICIPATION OF PRIVATE SCHOOLS.—(1) To the extent consist- Children and ent with the number of children in the State or in the school district youth. of each local educational agency who are enrolled in private elementary and secondary schools, such State or agency shall, after consultation with appropriate private school representatives, make provision for includmg special educational services and arrangements (such as dual enrollment, educational radio and television, and mobile educational services and equipment) in which such children can participate and which meet the requirements of this section. Expenditures for educational services and arrangements pursuant to this subsection for children in private schools shall be equal (taking into account the number of cMldren to be served and the needs of such children) to expenditures for children enrolled in the public schools of the State or local educational agency. 102 STAT. 1478 PUBLIC LAW 100-418—AUG. 23, 1988 (2) If by reason of any provision of law a State or local educational agency is prohibited from providing for the participation of children from private schools as required by paragraph (1), or if the Secretary determines that a State or local educational agency has substantially failed or is unwilling to provide for such participation on an equitable basis, the Secretary shall waive such requirements and shall arrange for the provision of services to such children which shall be subject to the requirements of this subsection. Such W£dvers shall be subject to consultation, withholding, notice, and judicial review requirements in accordance with paragraphs (3) and (4) of section 557(b) of the Education Consolidation and Improvement Act of 1981. 20 use 5014. SEC. 6024. ALLOTMENT. Territories, U.S. (a) GENERAL RuLE.—(1) From the sums appropriated to carry out this subchapter in any fiscal year, the Secretary shall reserve 1 percent for pajmients to Guam, American Samoa, the Virgin Islands, the Trust Territory of the Pacific Islands, and the Commonwealth of the Northern Mariana Islands, to be allotted in accordance with their respective needs. (2) From the remainder of such sums the Secretary shall allot to each State an amount which bears the same ratio to the amount of such remainder as the school age population of the State bears to the school age population of ^ 1 States, except that no State shall receive less than an amount equal to one-half of 1 percent of such remainder. (b) AVAILABILITY OF FUNDS.—The allotment of a State under subsection (a) shall be made available to the State for 2 additional years after the first fiscal year during which the State receives its allotment under this section if the Secretary determines that the funds made available to the State during the first such year were used in the manner required under the State's approved application. SEC. 6025. DEFINITIONS. 20 use 5015. (a) GENERAL RULE.—For the purpose of this subchapter, the term "foreign language instruction" means instruction in critical foreign languages as defined by the Secretary. (b) SPECIAL RULE.—For the purpose of section 6024— (1) the term "school age population" means the population aged 5 through 17; and (2) the term "States" includes the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico. SEC. 6026. AUTHORIZATION OF APPROPRIATIONS. 20 use 5016. There are authorized to be appropriated $20,000,000 for the fiscal year 1988 to carry out this subchapter. Subchapter B—Presidential Award for Languages 20 use 5021. District of Puerto lUco SEC. 6027. PRESIDENTIAL AWARDS. (a) GENERAL AuxHORrrY.—The President is authorized to make Presidential Awards for Teaching Excellence in Foreign Languages to elementary and secondary school teachers of foreign languages who have demonstrated outstanding teaching qualifications in the field of teaching foreign languages. (5) SELECTION PROCEDURES.—The President is authorized to make ^^^ awards under subsection (a) of this section. In selecting ele- PUBLIC LAW 100-418—AUG. 23, 1988 102 STAT. 1479 mentary and secondary school teachers for the award authorized by this section, the President shall select at least one elementary school teacher and one secondary school teacher from each of the several States, the District of Columbia, and the Commonwealth of Puerto Rico. SEC 6028. ADMINISTRATiyE PROVISIONS. 20 USC 5022. The President shall carry out the provisions of section 6027, including the establishment of the selection procedures, after consultation with the Secretary of Education, other appropriate officials of Federal agencies, and representatives of professional foreign language teacher associations. S E C 6029. AUTHORIZATION OF APPROPRIATIONS. 20 USC 5023. (a) AUTHORIZATION.—^There are authorized to be appropriated $1,000,000 for fiscal year 1988 to carry out the provisions of this subchapter. 0)) USE OF FUNDS.—^Amounts appropriated pursuant to sul^ection (a) shall be available for making awards under section 6027, for administrative expenses, for necessary travel by teachers selected under section 6027, and for special activities related to cariying out the provisions of this subchapter. CHAPTER 4—SCIENCE AND MATHEMATICS ELEMENTARY AND SECONDARY BUSINESS PARTNERSHIPS SEC 6031. PROGRAM AITTHORIZED. (a) EsTABUSHifENT OF PHOGRAM.—^Title m of the Education for Economic Security Act (20 U,S.C. 3981 et seq.) is amended— (1) by inserting after the title heading the following: "PART A—HIGHER EDUCATION PARTNERSHIPS"; and (2) by adding at the end the following new part: * T A R T B—RT.EMENTARY AND SECONDARY EJDUCATION PARTNERSHIPS Grants. "PURPOSE "SEC. 321. It is the p