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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 pub