Full text of Trade Agreements Act of 1979

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93 STAT. 144

PUBLIC LAW 96-39-JULY 26, 1979
Public Law 96-39
96th Congress
An Act

July 26,1979
[H.R. 4537]

Trade

-JQ approve and implement the trade agreements negotiated under the Trade Act of
1974, and for other purposes.

Be it enacted by the Senate and House of Representatives of the
United States ofAmerica in Congress assembled,

AffrGGmpnts Act

of 1979
19 u s e 2501.

SECTION 1. SHORT TITLE; TABLE OF CONTENTS; PURPOSES.
(a) SHORT TITLE.—^This Act may be cited as the "Trade Agreements

Act of 1979".

(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents; purposes.
Sec. 2. Approval of trade agreements.
Sec. 3. Relationship of trade agreements to United States law.
TITLE I-COUNTERVAILING AND ANTIDUMPING DUTIES
Sec. 101. Addition of new countervailing and antidumping duties title to Tariff Act
of 1930.
Sec. 102. Pending investigations; purposes.
Sec. 103. Amendment of section 303 of the Tariff Act of 1930.
Sec. 104. Transition rules for countervailing duty orders.
;
Sec. 105. Continuation of certain waivers.
Sec. 106. Conforming changes.
Sec. 107. Effective date.
TITLE II-CUSTOMS VALUATION
Subtitle A—Valuation Standards Amendments
Sec.
Sec.
Sec.
Sec.

201. Valuation of imported merchandise.
202. Conforming amendments.
203. Presidential report on operation of the Agreement.
204. Transition to valuation standards under this title.
Subtitle B—Final List and American Selling Price Rate Conversions

Sec.
Sec.
Sec.
Sec.

221. Amendment of tariff schedules.
222. Final list rate conversions.
223. American selling price rate conversions.
224. Treatment of converted rates as existing rates for purposes of trade agreement authority.
Sec. 225. Modification of tariff treatment of certain chemicals and chemical products.
TITLE III-GOVERNMENT PROCUREMENT
Sec. 301. General authority to modify discriminatory purchasing requirements.
Sec. 302. Authority to encourage reciprocal competitive procurement practices.
Sec. 303. Waiver of discriminatory purchasing requirements with respect to pur, chases of civil aircraft.
Sec. 304. Expansion of the coverage of the Agreement.
Sec. 305. Monitoring and enforcement.
Sec. 306. Labor surplus area studies.
Sec. 307. Availability of information to Congressional advisers.
Sec. 308. Definitions.
Sec. 309. Effective dates.

PUBLIC LAW 96-39-JULY 26, 1979

93 STAT. 145

TITLE IV-TECHNICAL BARRIERS TO TRADE (STANDARDS)
Subtitle A—Obligations of the United States
Sec. 401. Certain standards-related activities.
Sec. 402. Federal standards-related activities.
Sec. 403. State and private standards-related activities.
Subtitle B—Functions of Federal Agencies
Sec. 411. Functions of Special Representative.
Sec. 412. Establishment and operation of technical offices.
Sec. 413. Representation of United States interests before international standards
organizations.
Sec. 414. Standards information center.
Sec. 415. Contracts and grants.
Sec. 416. Technical assistance.
Sec. 417. Consultations with representatives of domestic interests.
Subtitle C—Administrative and Judicial Proceedings Regarding StandardsRelated Activities
CHAPTER 1—REPRESENTATIONS ALLEGING UNITED STATES VIOLATIONS OP OBUGATIONS

Sec.
Sec.
Sec.
Sec.

421. Right of action under this chapter.
422. Representations.
423. Action after receipt of representations.
424. Procedure after finding by international forum.
CHAPTER 2~0THER PROCEEDINGS REGARDING CERTAIN STANDARDS-RELATED
ACTIVITIES

Sec. 441. Finding of reciprocity required in administrative proceedings.
Sec. 442. Not cause for stay in certain circumstances.
Subtitle I>—Definitions and Miscellaneous Provisions
Sec.
Sec.
Sec.
Sec.

451. Definitions.
452. Exemptions under title.
453. Reports to Congress on operation of Agreement.
454. Effective date.
TITLE V-IMPLEMENTATION OF CERTAIN TARIFF NEGOTIATIONS

Sec.
Sec.
Sec,
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

501. Amendment of tariff schedules.
502. Effective dates of certain tariff reductions.
503. Staging of certain tariff reductions.
504. Snapback of textile tariff reductions.
505. Goat and sheep (except lamb) meat.
506. Certain fresh, chilled, or frozen beef
507. Yellow Dent corn.
508. Carrots.
509. Dinnerware.
510. Tariff treatment of watches.

Sec. 511. Brooms.

Sec. 512. Agricultural and horticultural machinery, equipment, implements, and
parts.
Sec. 513. Wool.
Sec. 514. Conversion to ad valorem equivalents of certain column 2 tariff rates.
TITLE VI-CIVIL AIRCRAFT AGREEMENT
Sec. 601. Civil aircraft and parts.
TITLE VII-CERTAIN AGRICULTURAL MEASURES
Sec. 701. Limitation on cheese imports.
Sec. 702. Enforcement.
Sec. 703. Limitation on imports of chocolate crumb.

.f;9-194 O — 81

12 : OL3

. . ''• ?
..^. • f

93 STAT. 146

PUBLIC LAW 96-39-JULY 26, 1979
Sec. 704. Amendments to meat import law.
TITLE Vni—TREATMENT OF DISTILLED SPIRITS
Subtitle A—Tax Treatment
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

801. Short title; amendment of 1954 Code.
802. Repeal of wine-gallon method of taxing distilled spirits.
803. Repeal of rectification taxes on distilled spirits.
804. Determination and payment of tax.
805. All-in-bond method of determining excise tax on distilled spirits.
806. Removal of requirement of on-site inspection.
807. Technical, conforming, and clerical amendments.
808. Transitional rules relating to determination and payment of tax.
809. Transitional rules relating to all-in-bond method.
810. Effective date.
Subtitle B—Tariff Treatment

Sec. 851. Repeal of provision that each wine gallon is to be counted as at least one
proof gallon.
Sec. 852. Changes in rates of duty.
Sec. 853. Effective date for sections 851 and 852.
Sec. 854. Review of international trade in alcoholic beverages.
Sec. 855. Authority to proclaim existing rates for certain items.
Sec. 856. Application of section 311 of the Tariff Act of 1930.
TITLE DC-ENFORCEMENT OF UNITED STATES RIGHTS
Sec. 901. Enforcement of United States rights under trade agreements and response
to certain foreign practices.
Sec. 902. Conforming amendments.
Sec. 903. Effective date.
TITLE X-JUDICLVL REVIEW
Sec. 1001. Judicial review.
Sec. 1002. Effective date and transitional rules.
TITLE XI-MISCELLANEOUS PROVISIONS
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

19 use 2502.
19 use 2101.

1101. Extension of nontariff barrier negotiating authority.
1102. Auction of import licenses.
1103. Advice from private sector.
1104. Study of possible agreements with North American countries.
1105. Amendments to section 337 of the Tariff Act of 1930.
1106. Technical amendments to the Trade Act of 1974.
1107. Technical amendments to the Tariff Schedules of the United States.
1108. Reporting of statistics on a cost-insurance-freight basis.
1109. Reorganizing and restructuring of international trade functions of the
United States Government.
1110, Study of export trade policy.
1111. Generalized system of preferences.
1112. Concession-related revenue losses to United States possessions.
1113. No budget authority for any fiscal year before fiscal year 1981.
1114. Effective date.

(c) PURPOSES.—The purposes of this Act are—
(1) to approve and implement the trade agreements negotiated
under the Trade Act of 1974;
(2) to foster the growth and maintenance of an open world
trading system;
(3) to expand opportunities for the commerce of the United
States in international trade; and
(4) to improve the rules of international trade and to provide
for the enforcement of such rules, and for other purposes.

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 147

SEC. 2. APPROVAL OF TRADE AGREEMENTS.

19 USC 2503

(a) APPROVAL OP AGREEMENTS AND STATEMENTS OF ADMINISTRATIVE

ACTION.—In accordance with the provisions of sections 102 and 151 of
the Trade Act of 1974 (19 U.S.C. 2112 and 2191), the Congress
approves the trade agreements described in subsection (c) submitted
to the Congress on June 19,1979, and the statements of administrative action proposed to implement such trade agreements submitted
to the Congress on that date.
(b) ACCEPTANCE OF AGREEMENTS BY THE PRESIDENT.—

(1) IN GENERAL.—The President may accept for the United
States the final legal instruments or texts embodying each of the
trade agreements approved by the Congress under subsection (a).
The President shall submit a copy of each final instrument or Agreement,
text to the Congress on the date such text or instrument is JonTress
available, together with a notification of any changes in the
instruments or texts, including their annexes, if any, as accepted
and the texts of such agreements as submitted to the Congress
under subsection (a). Such final legal instruments or texts shall
be deemed to be the agreements submitted to and approved by
the Congress under subsection (a) if such changes are—
(A) only rectifications of a formal character or minor
technical or clerical changes which do not affect the substance or meaning of the texts as submitted to the Congress
on June 19,1979, or
(B) changes in annexes to such agreements, and the
President determines that the balance of United States
rights and obligations under such agreements is maintained.
(2) APPUCATION OF AGREEMENT BETWEEN THE UNITED STATES

AND OTHER COUNTRIES.—No agreement accepted by the President
under paragraph (1) shall apply between the United States and
any other country unless the President determines that such
country—
(A) has accepted the obligations of the agreement with
respect to the United States, and
(B) should not otherwise be denied the benefits of the
agreement with respect to the United States because such
country has not accorded adequate benefits, including substantially equal competitive opportunities for the commerce
of the United States to the extent required under section
126(c) of the Trade Act of 1974 (19 U.S.C. 2136(c)), to the
United States.
(3) LIMITATION ON ACCEPTANCE CONCERNING MAJOR INDUSTRIAL

COUNTRIES.—The President may not accept an agreement
described in paragraph (1), (2), (3), (4), (5), (6), (7), (9), (10), or (11)
of subsection (c), unless he determines that each major industrial
country (as defined in section 126(d) of the Trade Act of 1974 (19
U.S.C. 2136(d)) is also accepting the agreement. Notwithstanding
the preceding sentence, the President may accept such an agreement, if he determines that only one major industrial country is
not accepting that agreement and the acceptance of that agreement by that country is not essential to the effective operation of
the agreement, and if—
(A) that country is not a major factor in trade in the
products covered by that agreement,
(B) the President has authority to deny the benefits of the
agreem.ent to that country and has taken steps to deny the
benefits of the agreement to that country, or

93 STAT. 148

European
Communities.

19 UST 4348.

19 u s e 2504.

PUBLIC LAW 96-39—JULY 26, 1979
(C) a significant portion of United States trade would
benefit from the agreement, notwithstanding such nonacceptance, and the President determines and reports to the
Congress that it is in the national interest of the United
States to accept the agreement.
For purposes of this paragraph, the acceptance of an agreement
by the European Communities on behalf of its member countries
shall also be treated as acceptance of that agreement by each
member country, and acceptance of an agreement by all the
member countries of the European Communities shall also be
treated as acceptance of that agreement by the European Communities.
(c) TRADE AGREEMENTS TO WHICH THIS ACT APPLIES.—The trade
agreements to which subsection (a) applies are the following:
(1) The Agreement on Implementation of Article VII of the
General Agreement on Tariffs and Trade (relating to customs
valuation).
(2) The Agreement on Government Procurement.
(3) The Agreement on Import Licensing Procedures.
(4) The Agreement on Technical Barriers to Trade (relating to
product standards).
(5) The Agreement on Interpretation and Application of Articles VI, XVI, and XXIII of the General Agreement on Tariffs and
Trade (relating to subsidies and countervailing measures).
(6) The Agreement on Implementation of Article VI of the
General Agreement on Tariffs and Trade (relating to antidumping measures).
(7) The International Dairy Arrangement.
(8) Certain bilateral agreements on cheese, other dairy products, and meat.
(9) The Arrangement Regarding Bovine Meat.
(10) The Agreement on Trade in Civil Aircraft.
(U) Texts Concerning a Framework for the Conduct of World
Trade.
(12) Certain Bilateral Agreements to Eliminate the WineGallon Method of Tax and Duty Assessment.
(13) Certain other agreements to be reflected in Schedule XX of
the United States to the General Agreement on Tariffs and
Trade, including Agreements—
(A) to Modify United States Watch Marking Requirements, and to Modify United States Tariff Nomenclature
and Rates of Duty for Watches,
(B) to Provide Duty-Free Treatment for Agricultural and
Horticultural Machinery, Equipment, Implements, and
Parts Thereof, and
(C) to Modify United States Tariff Nomenclature and
Rates of Duty for Ceramic Tableware.
(14) The Agreement with the Hungarian People's Republic.
SEC. 3. RELATIONSHIP OF TRADE AGREEMENTS TO UNITED STATES LAW.
(a) UNITED STATES STATUTES TO PREVAIL IN CONFLICT.—No provi-

sion of any trade agreement approved by the Congress under section
2(a), nor the application of any such provision to any person or
circumstance, which is in conflict with any statute of the United
States shall be given effect under the laws of the United States.
(b) IMPLEMENTING REGULATIONS.—Regulations necessary or appropriate to carry out actions proposed in any statement of proposed

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 149

administrative action submitted to the Congress under section 102 of
the Trade Act of 1974 to implement each agreement approved under is u s e 2112.
section 2(a) shall be issued within 1 year after the date of the entry
into force of such agreement with respect to the United States.
(c) CHANGES IN STATUTES T O IMPLEMENT A REQUIREMENT, AMENDMENT, OR RECOMMENDATION,—
(1) PRESIDENTIAL DETERMINATION.—Whenever the President

determines that it is necessary or appropriate to amend, repeal,
or enact a statute of the United States in order to implement any
requirement of, amendment to, or recommendation under such
an agreement, he shall submit to the Congress a draft of a bill to
accomplish the amendment, repeal, or enactment and a statement of any administrative action proposed to implement the
requirement, amendment, or recommendation. Not less than 30
days before submitting such a bill, the President shall consult
with the Committee on Ways and Means of the House of
Representatives, the Committee on Finance of the Senate, and
each committee of the House or Senate which has jurisdiction
over legislation involving subject matters which would be affected by such amendment, repeal, or enactment. The consultation shall treat all matters relating to the implementation of
such requirement, amendment, or recommendation, as provided
in paragraphs (2) and (3),

Draft, submittal
to Congress.

Consultation
with
congressional
committees.

(2) CONDITIONS FOR TAKING EFFECT UNDER UNITED STATES

LAW.—No such amendment shall enter into force with respect to
the United States, and no such requirement, amendment, or
recommendation shall be implemented under United States law,
unless—
(A) the President, after consultation with the Congress Publication in
Federal
under paragraph (1), notifies the House of Representatives Register.
and the Senate of his determination and publishes notice of
that determination in the Federal Register,
(B) the President transmits a document to the House of Document,
to
Representatives and to the Senate containing a copy of the submittal
Congress.
text of such requirement, amendment, or recommendation,
together with—
(i) a draft of a bill to amend or repeal provisions of
existing statutes or to create statutory authority and an
explanation as to how the bill and any proposed administrative action affect existing law, and
(ii) a statement of how the requirement, amendment,
or recommendation serves the interests of United States
commerce and why the legislative and administrative
action is necessary or appropriate to carry out the
requirement, amendment, or recommendation, and
(C) the bill submitted by the President is enacted into law.
(3) RECOMMENDATIONS AS TO APPUCATION.—The President may

make the same type of recommendations, in the same manner
and subject to the same conditions, to the Congress with respect
to the application of any such requirement, amendment, or
recommendation as he may make, under section 102(f) of the
19 u s e 2112.
Trade Act of 1974, with respect to a trade agreement.
(4) CONGRESSIONAL PROCEDURES APPLICABLE.—The bill submitted by the President shall be introduced in accordance with the
provisions of subsection (c)(1) of section 151 of the Trade Act of
1974, and the provisions of subsections (d), (e), (f), and (g) of such 19 u s e 2191.
section shall apply to the consideration of the bill. For the
purpose of applying section 151 of such Act to such b i l l -

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 150
"Trade
agreement."
"Implementing
bill."

(A) the term "trade agreement" shall be treated as a
reference to the requirement, amendment, or recommendation, and
(B) the term "implementing bill" or "implementing revenue bill", whichever is appropriate, shall be treated as a
reference to the bill submitted by the President.
(e) CONGRESSIONAL LIAISON.—Paragraph (1) of section 161(b) of the
Trade Act of 1974 (19 U.S.C. 2211(b)) is amended by inserting "or any
requirement of, amendment to, or recommendation under, such
agreement" immediately after "trade agreement",
(f) UNSPECIFIED PRIVATE REMEDIES NOT CREATED.—Neither

the

entry into force with respect to the United States of any agreement
approved under section 2(a), nor the enactment of this Act, shall be
construed as creating any private right of action or remedy for which
provision is not explicitly made under this Act or under the laws of
the United States.
TITLE I—COUNTERVAILING AND ANTIDUMPING DUTIES
SEC. 101. ADDITION OF NEW COUNTERVAILING AND ANTIDUMPING
DUTIES TITLE TO TARIFF ACT OF 1930.

The Tariff Act of 1930 is amended by adding at the end thereof the
following new title:
"TITLE VII—COUNTERVAILING AND ANTIDUMPING DUTIES
"Subtitle A—Imposition of Countervailing Duties
"Sec.
"Sec.
"Sec.
"Sec.
"Sec.
"Sec.
"Sec.

70L Countervailing duties imposed.
702. Procedures for initiating a countervailing duty investigation.
703. Preliminary determinations.
704. Termination or suspension of investigation.
705. Final determinations.
706. Assessment of duty.
707. Treatment of difference between deposit of estimated countervailing duty
and final assessed duty under countervailing duty order.
"Subtitle B—Imposition of Antidumping Duties

"Sec.
"Sec.
"Sec.
"Sec.
"Sec.
"Sec.
"Sec.

731. Antidumping duties imposed.
732. Procedures for initiating an antidumping duty investigation.
733. Preliminary determinations.
734. Termination or suspension of investigation.
735. Final determinations.
736. Assessment of duty.
737. Treatment of difference between deposit of estimated antidumping duty
and final assessed duty under antidumping duty order.
"Sec. 738. Conditional payment of antidumping duty.
"Sec. 739. Duties of customs officers.
"Sec. 740. Antidumping duty treated as regular duty for drawback purposes.
"Subtitle C—Review of Determinations
"Sec. 751. Administrative review of determinations.
"Subtitle D—General Provisions
"Sec.
"Sec.
"Sec.
"Sec.
"Sec.
"Sec.
"Sec.
"Sec.

771. Definitions; special rules.
772. United States price.
773. Foreign market value.
774. Hearings.
775. Subsidy practices discovered during an investigation.
776. Verification of information.
777. Access to information.
778. Interest on certain overpayments and underpayments.

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 151

"Subtitle A—Imposition of Countervailing Duties
"SEC. 701. COUNTERVAILING DUTIES IMPOSED.

19 USC 1671.

"(a) GENERAL RULE.—If—

"(1) the administering authority determines that—
"(A) a country under the Agreement, or
"(B) a person who is a citizen or national of such a country,
or a corporation, association, or other organization organized
in such a country,
is providing, directly or indirectly, a subsidy with respect to the
manufacture, production, or exportation of a class or kind of
merchandise imported into the United States, and
"(2) the Commission determines that—
"(A) an industry in the United States—
"(i) is materially injured, or
"(ii) is threatened with material injury, or
"(B) the establishment of an industry in the United States
is materially retarded,
by reason of imports of that merchandise,
then there shall be imposed upon such merchandise a countervailing
duty, in addition to any other duty imposed, equal to the amount of
the net subsidy.
"(b) COUNTRY UNDER THE AGREEMENT.—For purposes of this subtitle, the term 'country under the Agreement means a country—
"(1) between the United States and which the Agreement on
Subsidies and Countervailing Measures applies, as determined
under section 2(b) of the Trade Agreements Act of 1979,
"(2) which has assumed obligations with respect to the United
States which are substantially equivalent to obligations under
the Agreement, as determined by the President, or
"(3) with respect to which the President determines that—
"(A) there is an agreement in effect between the United
States and that country which—
"(i) was in force on June 19,1979, and
"(ii) requires unconditional most-favored-nation treatment with respect to articles imported into the United
States,
"(B) the General Agreement on Tariffs and Trade does not
apply between the United States and that country, and
"(C) the agreement described in subparagraph (A) does not
expressly permit—
"(i) actions required or permitted by the General
Agreement on Tariffs and Trade, or required by the
Congress, or
"(ii) nondiscriminatory prohibitions or restrictions on
importation which are designed to prevent deceptive or
unfair practices.
"(c) CROSS REFERENCE.—
"For provisions of law applicable in the case of merchandise which is
the product of a country other than a country under the Agreement, see
section 303 of this Act
"SEC. 702. PROCEDURES FOR INITIATING A COUNTERVAILING DUTY
INVESTIGATION.

"(a) INITIATION BY ADMINISTERING AUTHORITY.—A countervailing
duty investigation shall be commenced whenever the administering
authority determines, from information available to it, that a form^

19 USC 1671a.

93 STAT. 152

PUBLIC LAW 96-39—JULY 26, 1979

I

investigation is warranted into the question of whether the elements
necessary for the imposition of a duty under section 701(a) exist.
'

Post, p. 176.

Publication in
Federal
Register.

Publication in
Federal
Register.

"(b) INITIATION BY PETITION.—
"(1) PETITION REQUIREMENTS.—A

countervaiUng duty proceeding shall be commenced whenever an interested party described
in subparagraph (C), (D), or (E) of section 771(9) files a petition
with the administering authority, on behalf of an industry,
which alleges the elements necessary for the imposition of the
duty imposed by section 701(a), and which is accompanied by
information reasonably available to the petitioner supporting
those allegations. The petition may be amended at such time, and
upon such conditions, as the administering authority and the
Commission may permit.
"(2) SIMULTANEOUS FILING WITH COMMISSION.—The petitioner
shall file a copy of the petition with the Commission on the same
day as it is filed with the administering authority.
"(c) PETITION DETERMINATION.—Within 20 days after the date on
which a petition is filed under subsection (b), the administering
authority shall—
"(1) determine whether the petition alleges the elements
necessary for the imposition of a duty under section 701(a) and
contains information reasonably available to the petitioner supporting the allegations.
"(2) if the determination is affirmative, commence an investigation to determine whether a subsidy is being provided with
respect to the class or kind of merchandise described in the
petition, and provide for the publication of notice of the determination to commence an investigation in the Federal Register,
and
"(3) if the determination is negative, dismiss the petition,
terminate the proceeding, notify the petitioner in writing of the
reasons for the determination, and provide for the publication of
notice of the determination in the Federal Register.
"(d) NOTIFICATION TO COMMISSION OF DETERMINATION.—The admin-

istering authority shall—
"(1) notify the Commission immediately of any determination
it makes under subsection (a) or (c), and
"(2) if the determination is affirmative, make available to the
Commission such information as it may have relating to the
matter under investigation, under such procedures as the administering authority and the Commission may establish to prevent
disclosure, other than with the consent of the party providing it
or under protective order, of any information to which confidential treatment has been given by the administering authority.
19 u s e 1671b.

"SEC. 703. PRELIMINARY DETERMINATIONS.
"(a) DETERMINATION BY COMMISSION OF REASONABLE INDICATION OF

'.

INJURY.—Except in the case of a petition dismissed by the administering authority under section 702(c)(3), the Commission, within 45 days
after the date on which a petition is filed under section 702(b) or on
which it receives notice from the administering authority of an
investigation commenced under section 702(a), shall make a determination, based upon the best information available to it at the time of
the determination, of whether there is a reasonable indication that—
"(1) an industry in the United States—
"(A) is materially injured, or
"(B) is threatened with material injury, or

PUBLIC LAW 9 6 - 3 9 - J U L Y 26, 1979

93 STAT. 153

"(2) the establishment of an industry in the United States is
materially retarded,
by reason of imports of the merchandise which is the subject of the
investigation by the administering authority. If that determination is
negative, the investigation shall be terminated.
"(b) PREUMINARY DETERMINATION BY ADMINISTERING AUTHOR-

ITY.—Within 85 days after the date on which a petition is filed under
section 702(b), or an investigation is commenced under section 702(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 a subsidy is being provided with
respect to the merchandise which is the subject of the investigation. If
the determination of the administering authority under this subsection is affirmative, the determination shall include an estimate of the
net subsidy.
"(c) EXTENSION OF PERIOD IN EXTRAORDINARILY COMPUCATED
CASES.—
"(1) IN GENERAL.—If—

"(A) the petitioner makes a timely request for an extension of the period within which the determination must be
made under subsection (b), or
"(B) the administering authority concludes that the parties concerned are cooperating and determines that—
"(i) the case is extraordinarily complicated by reason
of"(I) the number and complexity of the alleged
subsidy practices;
"(II) the novelty of the issues presented;
"(III) the need to determine the extent to which
particular subsidies are used by individual manufacturers, producers, and exporters; or
"(IV) the number of firms whose activities must
be investigated; and
"(ii) additional time is necessary to make the preliminary determination,
then the administering authority may postpone making the
preliminary determination under subsection (b) until not later
than the 150th day after the date on which a petition is filed
under section 702(b), or an investigation is commenced under
section 702(a).
"(2) NOTICE OF POSTPONEMENT.—The administering authority

shall notify the parties to the investigation, not later than 20
days before the date on which the preliminary determination
would otherwise be required under subsection (b), if it intends to
postpone making the preliminary determination under paragraph (1). The notification shall include an explanation of the
reasons for the postponement. Notice of the postponement shall Publication in
be published in the Federal Register.
Federal
"(d) EFFECT OF DETERMINATION BY THE ADMINISTERING AUTHOR-

ITY.—If the preliminary determination of the administering authority
under subsection Ob) is affirmative, the administering authority—
"(1) shall order the suspension of liquidation of all entries of
merchandise subject to the determination which are entered, or
withdrawn from warehouse, for consumption on or after the date
of publication of the notice of the determination in the Federal
Register,

^^S^^*®'"-

93 STAT. 154

PUBLIC LAW 9 6 - 3 9 - J U L Y 26, 1979
"(2) shall order the posting of a cash deposit, bond, or other
security, as it deems appropriate, for each entry of the merchandise concerned equal to the estimated amount of the net subsidy,
and
"(3) shall make available to the Commission all information
upon which its determination was based and which the Commission considers relevant to its injury determination, under such
procedures as the administering authority and the Commission
may establish to prevent disclosure, other than with the consent
of the party providing it or under protective order, of any
information to which confidential treatment has been given by
the administering authority.
"(e) CRITICAL CIRCUMSTANCES DETERMINATIONS,—

"(1) IN GENERAL.—If a petitioner alleges critical circumstances
in its original petition, or by amendment at any time more than
20 days before the date of a final determination by the administering authority, then the administering authority shall promptly
determine, on the basis of the best information available to it
at that time, whether there is a reasonable basis to believe or
suspect that—
"(A) the alleged subsidy is inconsistent with the Agreement, and
"(B) there have been massive imports of the class or kind
of merchandise which is the subject of the investigation over
a relatively short period.
"(2) SUSPENSION OF LIQUIDATION.—If the determination of the

Publication in
Federal
Register.

19 u s e 1671c.

administering authority under paragraph (1) is affirmative, then
any suspension of liquidation ordered under subsection (dXl)
shall apply, or, if notice of such suspension of liquidation is
already published, be amended to apply, to unliquidated entries
of merchandise entered, or withdrawn from warehouse, for
consumption on or after the date which is 90 days before the date
on which suspension of liquidation was first ordered.
"(f) NOTICE OF DETERMINATIONS.—Whenever the Commission or the
administering authority makes a determination under this section, it
shall notify the petitioner, other parties to the investigation, and the
other agency of its determination and of the facts and conclusions of
law upon which the determination is based, and it shall publish
notice of its determination in the Federal Register.
"SEC. 704. TERMINATION OR SUSPENSION OF INVESTIGATION.
"(a) TERMINATION OF INVESTIGATION ON WITHDRAWAL OF PETI-

TION.—An investigation under this subtitle may be terminated by
either the administering authority or the Commission after notice to
all parties to the investigation, upon withdrawal of the petition by the
petitioner. The Commission may not terminate an investigation
under the preceding sentence before a preliminary determination is
made by the administering authority under section 703(b).
"(b) AGREEMENTS TO ELIMINATE OR OFFSET COMPLETELY A SUBSIDY

OR To CEASE EXPORTS OF SUBSIDIZED MERCHANDISE.—The administering authority may suspend an investigation if the government of the
country in which the subsidy practice is alleged to occur agrees, or
exporters who account for substantially all of the imports of the
merchandise which is the subject of the investigation agree—
"(1) to eliminate the subsidy completely or to offset completely
the amount of the net subsidy, with respect to that merchandise
exported directly or indirectly to the United States, within 6
months after the date on which the investigation is suspended, or

PUBLIC LAW 9 6 - 3 9 - J U L Y 26, 1979

93 STAT. 155

"(2) to cease exports of that merchandise to the United States
within 6 months after the date on which the investigation is
suspended.
"(c) AGREEMENTS EUMINATING INJURIOUS EFFECT.—
"(1) GENERAL RULE.—If the administering authority

determines that extraordinary circumstances are present in a case, it
may suspend an investigation upon the acceptance of an agreement from a government described in subsection (b), or from
exporters described in subsection (b), if the agreement will
eliminate completely the injurious effect of exports to the United
States of the merchandise which is the subject of the investigation.
"(2) CERTAIN ADDITIONAL REQUIREMENTS.—Except in the case of
an agreement by a foreign government to restrict the volume of
imports of the merchandise which is the subject of the investigation into the United States, the administering authority may not
accept an agreement under this subsection unless—
"(A) the suppression or undercutting of price levels of
domestic products by imports of that merchandise will be
prevented, and
"(B) at least 85 percent of the net subsidy will be offset.
"(3) QUANTITATIVE RESTRICTIONS AGREEMENTS.—The adminis-

tering authority may accept an agreement with a foreign government under this subsection to restrict the volume of imports of
merchandise which is the subject of an investigation into the
United States, but it may not accept such an agreement with
exporters.
"(4) DEFINITION OF EXTRAORDINARY CIRCUMSTANCES.—
"(A) EXTRAORDINARY CIRCUMSTANCES.—For purposes of

this subsection, the term 'extraordinary circumstances'
means circumstances in which—
"(i) suspension of an investigation will be more beneficial to the domestic industry than continuation of the
investigation, and
"(ii) the investigation is complex.
"(B) COMPLEX.—For purposes of this paragraph, the term
'complex' means—
"(i) there are a large number of alleged subsidy
practices and the practices are complicated,
"(ii) the issues raised are novel, or
"(iii) the number of exporters involved is large.
"(d) ADDITIONAL RULES AND CONDITIONS.—
"(1) PUBLIC INTEREST; MONITORING.—The

administering
authority shall not accept an agreement under subsection (b) or
(c) unless—
"(A) it is satisfied that suspension of the investigation is in
the public interest, and
"(B) effective monitoring of the agreement by the United
States is practicable.
"(2) EXPORTS OF MERCHANDISE TO UNITED STATES NOT TO
INCREASE DURING INTERIM PERIOD.—The administering authority

may not accept any agreement under subsection (b) unless that
agreement provides a means of ensuring that the quantity of the
merchandise covered by that agreement exported to the United
States during the period provided for elimination or offset of the
subsidy or cessation of exports does not exceed the quantity of
such merchandise exported to the United States during the most

.,

93 STAT. 156

PUBLIC LAW 9 6 - 3 9 - J U L Y 26, 1979
recent representative period determined by the administering
authority.
"(3) REGULATIONS GOVERNING ENTRY OR WITHDRAWALS.—In

order to carry out an agreement concluded under subsection (b)
or (c), the administering authority is authorized to prescribe
regulations governing the entry, or withdrawal from warehouse,
for consumption of merchandise covered by such agreement.
"(e) SUSPENSION OF INVESTIGATION PROCEDURE.—Before an investi-

gation may be suspended under subsection (b) or (c) the administering
authority shall—
"(1) notify the petitioner of, and consult with the petitioner
concerning, its intention to suspend the investigation, and notify
other parties to the investigation and the Commission not less
than 30 days before the date on which it suspends the investigation,
"(2) provide a copy of the proposed agreement to the petitioner
at the time of the notification, together with an explanation of
how the agreement will be carried out and enforced (including
any action required of foreign governments), and of how the
agreement will meet the requirements of subsections (b) and (d)
or (c) and (d), and
"(3) permit all parties to the investigation to submit comments
and information for the record before the date on which notice of
suspension of the investigation is published under subsection
(f)(1)(A).
' '(f) EFFECTS OF SUSPENSION OF INVESTIGATION.—

Suspension
"°*i|!®'
pub ication.

"(1) IN GENERAL.—If the administering authority determines
to suspend an investigation upon acceptance of an agreement
described in subsection (b) or (c), then—
"(A) it shall suspend the investigation, publish notice of
suspension of the investigation, and issue an affirmative
preliminary determination under section 703(b) with respect
to the merchandise which is the subject of the investigation,
unless it has previously issued such a determination in the
same investigation,
"(B) the Commission shall suspend any investigation it is
conducting with respect to that merchandise, and
"(C) the suspension of investigation shall take effect on the
day on which such notice is published.
"(2) LIQUIDATION OF ENTRIES.—
"(A) CESSATION OF EXPORTS; COMPLETE ELIMINATION OF NET

SUBSIDY.—If the agreement accepted by the administering
authority is an agreement described in subsection (b), then—
"(i) notwithstanding the affirmative preliminary
determination required under paragraph (1)(A), the
liquidation of entries of merchandise which is the subject of the investigation shall not be suspended under
section 703(d)(1),
"(ii) if the liquidation of entries of such merchandise
was suspended pursuant to a previous affirmative preliminary determination in the same case with respect to
such merchandise, that suspension of liquidation shall
terminate, and
"(iii) the administering authority shall refund any
cash deposit and release any bond or other security
deposited under section 703(d)(1).
"(B) OTHER AGREEMENTS.—If the agreement accepted by

the administering authority is an agreement described in

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 157

subsection (c), then the liquidation of entries of the merchandise which is the subject of the investigation shall be suspended under section 703(d)(1), or, if the liquidation of
entries of such merchandise was suspended pursuant to a
previous affirmative preliminary determination in the same
case, that suspension of liquidation shall continue in effect,
subject to subsection (h)(3), but the security required under
section 703(d)(2) may be adjusted to reflect the effect of the
agreement.
"(3) WHERE INVESTIGATION IS CONTINUED.—If, pursuant to

subsection (g), the administering authority and the Commission
continue an investigation in which an agreement has been
accepted under subsection (b) or (c), then—
"(A) if the final determination by the administering
authority or the Commission under section 705 is negative,
the agreement shall have no force or effect and the investigation shall be terminated, or
"(B) if the final determinations by the administering
authority and the Commission under such section are
affirmative, the agreement shall remain in force, but the
administering authority shall not issue a countervailing
duty order in the case so long as—
"(i) the agreement remains in force,
"(ii) the agreement continues to meet the requirements of subsections (b) and (d) or (c) and (d), and
"(iii) the parties to the agreement carry out their
obligations under the agreement in accordance with its
terms.
"(g) INVESTIGATION T O B E CONTINUED UPON REQUEST.—If the

administering authority, within 20 days after the date of publication
of the notice of suspension of an investigation, receives a request for
the continuation of the investigation from—
"(1) the government of the country in which the subsidy
practice is alleged to occur, or
"(2) an interested party described in subparagraph (C), (D), or
(E) of section 771(9) which is a party to the investigation. Post, p. 176.
then the administering authority and the Commission shall continue
the investigation.
"(h) REVIEW OF SUSPENSION.—

"(1) IN GENERAL.—Within 20 days after the suspension of an
investigation under subsection (c), an interested party which is a
party to the investigation and which is described in subparagraph (C), (D), or (E) of section 771(9) may, by petition filed with
the Commission and with notice to the administering authority,
ask for a review of the suspension.

.;

.i..

"(2) COMMISSION INVESTIGATION.—Upon receipt of a review

petition under paragraph (1), the Commission shall, within 75
days after the date on which the petition is filed with it,
determine whether the injurious effect of imports of the merchandise which is the subject of the investigation is eliminated
completely by the agreement. If the Commission's determination
under this subsection is negative, the investigation shall be
resumed on the date of publication of notice of such determination as if the affirmative preliminary determination under
section 703(b) had been made on that date.
"(3) SUSPENSION OF LIQUIDATION TO CONTINUE DURING REVIEW

PERIOD.—The suspension of liquidation of entries of the merchan- Publication in
dise which is the subject of the investigation shall terminate at ^^^^f

93 STAT. 158

PUBLIC LAW 96-39—JULY 26, 1979
the close of the 20-day period beginning on the day after the date
on which notice of suspension of the investigation is published in
the Federal Register, or, if a review petition is filed under
paragraph (1) with respect to the suspension of the investigation,
in the case of an affirmative determination by the Commission
under paragraph (2), the date on which notice of the affirmative
determination by the Commission is published. If the determination of the Commission under paragraph (2) is affirmative, then
the administering authority shall—
"(A) terminate the suspension of liquidation under section
703(d)(1), and
"(B) release any bond or other security, and refund any
cash deposit, required under section 703(d)(2).
"(i) VIOLATION OF AGREEMENT.—

Notification.

"(1) IN GENERAL.—If the administering authority determines
that an agreement accepted under subsection (b) or (c) is being, or
has been, violated, or no longer meets the requirements of such
subsection (other than the requirement, under subsection (c)(1),
of elimination of injury) and subsection (d), then, on the date of
publication of its determination, it shall—
"(A) suspend liquidation under section 703(d)(1) of unliquidated entries of the merchandise made on or after the later
of—
"(i) the date which is 90 days before the date of
publication of the notice of suspension of liquidation, or
"(ii) the date on which the merchandise, the sale or
export to the United States of which was in violation of
the agreement, or under an agreement which no longer
meets the requirements of subsections (b) and (d) or (c)
and (d), was first entered, or withdrawn from warehouse, for consumption,
"(B) if the investigation was not completed, resume the
investigation as if its affirmative preliminary determination
under section 703(b) were made on the date of its determination under this paragraph,
"(C) if the investigation was completed under subsection
(g), issue a countervailing duty order under section 706(a)
effective with respect to entries of merchandise the liquidation of which was suspended, and
"(D) notify the petitioner, interested parties who are or
were parties to the investigation, and the Commission of its
action under this paragraph.
"(2)

INTENTIONAL VIOLATION TO

BE

PUNISHED

BY CIVIL

PENALTY.—Any person who intentionally violates an agreement
accepted by the administering authority under subsection (b) or
(c) shall be subject to a civil penalty assessed in the same
amount, in the same manner, and under the same procedure, as
the penalty imposed for a fraudulent violation of section 592(a)
19 u s e 1592.

of t h i s Act.
"(j) DETERMINATION NOT TO TAKE AGREEMENT INTO ACCOUNT.—In

making a final determination under section 705, or in conducting a
review under section 751, in a case in which the administering
authority has terminated a suspension of investigation under subsection (i)(l), or continued an investigation under subsection (g), the
Commission and the administering authority shall consider all of the
merchandise which is the subject of the investigation, without regard
to the effect of any agreement under subsection (b) or (c).

PUBLIC LAW 96-39—JULY 26, 1979
"SEC. 705. FINAL DETERMINATIONS.
"(a) FINAL DETERMINATION BY ADMINISTERING AUTHORITY.—

"(1) IN GENERAL.—Within 75 days after the date of its preliminary determination under section 703(b), the administering
authority shall make a final determination of whether or not a
subsidy is being provided with respect to the merchandise.
"(2) CRITICAL CIRCUMSTANCES DETERMINATIONS.—If the final
determination of the administering authority is affirmative,
then that determination, in any investigation in which the
presence of critical circumstances has been alleged under section
703(e), shall also contain a finding as to whether—
"(A) the subsidy is inconsistent with the Agreement, and
"(B) there have been massive imports of the class or kind
of merchandise involved over a relatively short period.
"(b) FINAL DETERMINATION BY COMMISSION.—

"(1) IN GENERAL.—The Commission shall make a final determination of whether—
"(A) an industry in the United States—
"(i) is materially injured, or
"(ii) is threatened with material injury, or
"(B) the establishment of an industry in the United States
is materially retarded,
by reason of imports of the merchandise with respect to which
the administering authority has made an affirmative determination under subsection (a).
"(2) PERIOD FOR INJURY DETERMINATION FOLLOWING AFFIRMATIVE PREUMINARY DETERMINATION BY ADMINISTERING AUTHOR-

ITY.—If the preliminary determination by the administering
authority under section 703(b) is affirmative, then the Commission shall make the determination required by paragraph (1)
before the later of—
"(A) the 120th day after the day on which the administering authority makes its affirmative preliminary determination under section 703(b), or
"(B) the 45th day after the day on which the administering
authority makes its affirmative final determination under
subsection (a).
"(3) PERIOD FOR INJURY DETERMINATION FOLLOWING NEGATIVE
PREUMINARY DETERMINATION BY ADMINISTERING AUTHORITY.—If

the preliminary determination by the administering authority
under section 703 0?) is negative, and its final determination
under subsection (a) is affirmative, then the final determination
by the Commission under this subsection shall be made within 75
days after the date of that affirmative final determination.
"(4) CERTAIN ADDITIONAL FINDINGS.—

"(A) If the finding of the administering authority under
subsection (a)(2) is affirmative, then the final determination
of the Commission shall include findings as to whether—
"(i) there is material injury which will be difficult to
repair, and
"(ii) the material injury was by reason of such massive
imports of the subsidized merchandise over a relatively
short period.
"(B) If the final determination of the Commission is that
there is no material injury but that there is threat of
material injury, then its determination shall also include a
finding as to whether material injury by reason of imports of
the merchandise with respect to which the administering

93 STAT. 159
19 USC 1671d.

93 STAT. 160

PUBLIC LAW 96-39—JULY 26, 1979
authority has made an affirmative determination under
subsection (a) would have been found but for any suspension
of liquidation of entries of that merchandise.
"(c) EFFECT OF FINAL DETERMINATIONS.—
"(1) EFFECT OF AFFIRMATIVE DETERMINATION BY THE ADMINIS-

TERING AUTHORITY.—If the determination of the administering
authority under subsection (a) is affirmative, then—
"(A) the administering authority shall make available to
the Commission all information upon which such determination was based and which the Commission considers relevant
to its determination, under such procedures as the administering authority and the Commission may establish to prevent disclosure, other than with the consent of the party
providing it or under protective order, of any information to
which confidential treatment has been given by the administering authority, and
"(B) in cases where the preliminary determination by the
administering authority under section 703(b) was negative,
the administering authority shall order under paragraphs
(1) and (2) of section 703(d) the suspension of liquidation and
the posting of a cash deposit, bond, or other security.
"(2) ISSUANCE OF ORDER; EFFECT OF NEGATIVE DETERMINATION,—

If the determinations of the administering authority and the
Commission under subsections (a)(1) and (b)(1) are affirmative,
then the administering authority shall issue a countervailing
duty order under section 706(a). If either of such determinations
is negative, the investigation shall be terminated upon the
publication of notice of that negative determination and the
administering authority shall—
"(A) terminate the suspension of liquidation under section
703(d)(1), and
"(B) release any bond or other security and refund any
cash deposit required under section 703(d)(2).
"(3) EFFECT OF NEGATIVE DETERMINATIONS UNDER SUBSECTIONS

(a)(2) AND (b)(4)(A).—If the determination of the administering
authority or the Commission under subsection (a)(2) and (b)(4)(A),
respectively, is negative, then the administering authority
shall—
"(A) terminate any retroactive suspension of liquidation
required under section 703(e)(2), and
"(B) release any bond or other security, and refund any
cash deposit required, under section 703(d)(2) with respect to
entries of the merchandise the liquidation of which was
suspended retroactively under section 703(e)(2).
Publication in

" ( J ) PUBLICATION OF NOTICE OF DETERMINATIONS.—Whenever t h e

Register.

administering authority or the Commission makes a determination
under this section, it shall notify the petitioner, other parties to the
investigation, and the other agency of its determination and of the
facts and conclusions of law upon which the determination is based,
and it shall publish notice of its determination in the Federal
Register.

19 u s e 1671e.

"SEC. 706. ASSESSMENT OF DUTY.

"(a) PUBLICATION OF COUNTERVAILING DUTY ORDER.—Within 7 days
after being notified by the Commission of an affirmative determination under section 705(b), the administering authority shall publish a
countervailing duty order which—

PUBLIC LAW 96-39—JULY 26, 1979
"(1) directs customs officers to assess a countervailing duty
equal to the amount of the net subsidy determined or estimated
to exist, within 6 months after the date on which the administering authority receives satisfactory information upon which the
assessment may be based, but in no event later than 12 months
after the end of the annual accounting period of the manufactuer
or exporter within which the merchandise is entered, or
withdrawn from warehouse, for consumption,
"(2) includes a description of the class or kind of merchandise
to which it applies, in such detail as the administering authority
deems necessary, and
"(3) requires the deposit of estimated countervailing duties
pending liquidation of entries of merchandise at the same time as
estimated normal customs duties on that merchandise are
deposited.

93 STAT. 161

~

"(b) IMPOSITION OF DUTIES.—
"(1) GENERAL RULE.—If the

Commission, in its final determination under section 705(b), finds material injury or threat of
material injury which, but for the suspension of liquidation
under section 703(d)(1), would have led to a finding of material
injury, then entries of the merchandise subject to the countervailing duty order, the liquidation of which has been suspended
under section 703(d)(1), shall be subject to the imposition of
countervailing duties under section 701(a).
"(2) SPECIAL RULE.—If the Commission, in its final determination under section 705(b), finds threat of material injury, other
than threat of material injury described in paragraph (1), or
material retardation of the establishment of an industry in the
United States, then merchandise subject to a countervailing duty
order which is entered, or withdrawn from warehouse, for
consumption on or after the date of publication of notice of an
affirmative determination of the Commission under section
705(b) shall be subject to the imposition of countervailing duties
under section 701(a), and the administering authority shall
release any bond or other security, and refund any cash deposit
made, to secure the payment of countervailing duties with
respect to entries of the merchandise entered, or withdrawn from
warehouse, for consumption before that date.

"SEC. 707. TREATMENT OF DIFFERENCE BETWEEN DEPOSIT OF ESTIMATED COUNTERVAILING DUTY AND FINAL ASSESSED DUTY
UNDER COUNTERVAILING DUTY ORDER.
"(a) DEPOSIT OF ESTIMATED COUNTERVAILING DUTY UNDER SECTION

703(d)(2).—If the amount of a cash deposit, or the amount of any bond
or other security, required as security for an estimated countervailing duty under section 703(d)(2) is different from the amount of the
countervailing duty determined under a countervailing duty order
issued under section 706, then the difference for entries of merchandise entered, or withdrawn from warehouse, for consumption before
notice of the affirmative determination of the Commission under
section 705(b) is published shall be—
"(1) disregarded, to the extent that the cash deposit, bond, or
other security is lower than the duty under the order, or
"(2) refunded or released, to the extent that the cash deposit,
bond, or other security is higher than the duty under the order.
"(b) DEPOSIT OF ESTIMATED COUNTERVAILING DUTY UNDER SECTION

706(a)(3).—If the amount of an estimated countervailing duty deposited under section 706(a)(3) is different from the amount of the

59-194 0 — 81

13 : QL3

19 USC 1671f.

93 STAT. 162

Post, p. 188.

PUBLIC LAW 96-39—JULY 26, 1979
countervailing duty determined under a countervailing duty order
issued under section 706, then the difference for entries of merchandise entered, or withdrawn from warehouse, for consumption after
notice of the affirmative determination of the Commission under
section 705(b) is published shall be—
"(1) collected, to the extent that the deposit under section
706(a)(3) is lower than the duty determined under the order, or
"(2) refunded, to the extent that the deposit under section
706(a)(3) is higher than the duty determined under the order,
together with interest as provided by section 778.
"Subtitle B—Imposition of Antidumping Duties

19 u s e 1673.

"SEC, 731. ANTIDUMPING DUTIES IMPOSED.

"If_
"(1) the administering authority determines that a class or
kind of foreign merchandise is being, or is likely to be, sold in the
United States at less than its fair value, and
"(2) the Commission determines that—
"(A) an industry in the United States—
**(i) is materially injured, or
"(ii) is threatened with material injury, or
"(B) the establishment of an industry in the United States
is materially retarded,
by reason of imports of that merchandise,
then there shall be imposed upon such merchandise an antidumping
duty, in addition to any other duty imposed, in an amount equal to
the amount by which the foreign market value exceeds the United
States price for the merchandise.
19 u s e 1673a.

"SEC. 732. PROCEDURES FOR INITIATING AN ANTIDUMPING DUTY INVESTIGATION.

"(a) INITIATION BY ADMINISTERING AUTHORITY.—An antidumping
duty investigation shall be commenced whenever the administering
authority determines, from information available to it, that a formal
investigation is warranted into the question of whether the elements
necessary for the imposition of a duty under section 731 exist.
"(b) INITIATION BY PETITION.—
"(1) PETITION REQUIREMENTS.—An antidumping proceeding

shall be commenced whenever an interested party described in
subparagraph (C), (D), or (E) of section 771(9) files a petition with
the administering authority, on behalf of an industry, which
alleges the elements necessary for the imposition of the duty
imposed by section 731, and which is accompanied by information reasonably available to the petitioner supporting those
allegations. The petition may be amended at such time, and upon
such conditions, as the administering authority and the Commission may permit.
"(2) SIMULTANEOUS FILING WITH COMMISSION.—The petitioner
shall file a copy of the petition with the Commission on the same
day as it is filed with the administering authority.
"(c) PETITION DETERMINATION.—Within 20 days after the date on
which a petition is filed under subsection (b), the administering
authority shall—
"(1) determine whether the petition alleges the elements
necessary for the imposition of a duty under section 731 and
contains information reasonably available to the petitioner supporting the allegations,

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 163

"(2) if the determination is affirmative, commence an investigation to determine whether the class or kind of merchandise
described in the petition is being, or is Ukely to be, sold in the
United States at less than its fair value, and provide for the
publication of notice of the determination in the Federal Register, and
"(3) if the determination is negative, dismiss the petition,
terminate the proceeding, notify the petitioner in writing of the
reasons for the determination, and provide for the publication of
notice of the determination in the Federal Register.

Publication in
Federal
Register.

Publication in
Federal
Register.

"(d) NOTIFICATION TO COMMISSION OF DETERMINATION.—The admin-

istering authority shall—
"(1) notify the Commission immediately of any determination
it makes under subsection (a) or (c), and
"(2) if the determination is affirmative, make available to the Availability of
Commission such information £is it may have relating to the information.
matter under investigation, under such procedures as the administering authority and the Commission may establish to prevent
disclosure, other than with the consent of the party providing it
or under protective order, of any information to which confidential treatment has been given by the administering authority.
"SEC. 733. PRELIMINARY DETERMINATIONS.
"(a) DETERMINATION BY COMMISSION OP REASONABLE INDICATION OF

INJURY.—Except in the case of a petition dismissed by the administering authority under section 732(c)(3), the Commission, within 45 days
after the date on which a petition is filed under section 732(b) or on
which it receives notice from the administering authority of an
investigation commenced under section 732(a), shall make a determination, based upon the best information available to it at the time of
the determination, of whether there is a reasonable indication that—
"(1) an industry in the United States—
"(A) is materially injured, or
"(B) is threatened with material injury, or
"(2) the establishment of an industry in the United States is
materially retarded,
by reason of imports of the merchandise which is the subject of the
investigation by the administering authority. If that determination is
negative, the investigation shall be terminated.
"(b) PRELIMINARY DETERMINATION BY ADMINISTERING AUTHORITY.—
"(1) PERIOD OF ANTIDUMPING DUTY INVESTIGATION.—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 this subsection is affirmative, the determination shall include the estimated
average amount by which the foreign market value exceeds the
United States price.
"(2) PREUMINARY DETERMINATION UNDER WAIVER OF VERIFICA-

TION.—Within 75 days after the initiation of an investigation, the
administering authority shall cause an official designated for
such purpose to review the information concerning the case

19 u s e 1673b.

93 STAT. 164

Post, p. 187.

PUBLIC LAW 96-39—JULY 26, 1979
received during the first 60 days of the investigation, and, if there
appears to be sufficient information available upon which the
preliminary determination can reasonably be based, to disclose
to the petitioner and any interested party, then a party to the
proceedings that requests such disclosure, all available nonconfidential information and all other information which is
disclosed pursuant to section 777. Within 3 days (not counting
Saturdays, Sundays, or legal public holidays) after such disclosure, the petitioner and each party which is an interested party
described in subparagraph (C), (D), or (E) of section 771(9) to
whom such disclosure was made may furnish to the administering authority an irrevocable written waiver of verification of the
information received by the authority, and an agreement that it
is willing to have a preliminary determination made on the basis
of the record then available to the authority. If a timely waiver
and agreement have been received from the petitioner and each
party which is an interested party described in subparagraph (C),
(D), or (E) of section 771(9) to whom the disclosure was made, and
the authority finds that sufficient information is then available
upon which the preliminary determination can reasonably be
based, a preliminary determination shall be made within 90 days
after the commencement of the investigation on the basis of the
record established during the first 60 days after the investigation
was commenced.
"(c) EXTENSION OF PERIOD IN EXTRAORDINARILY COMPLICATED
CASES.—
"(1) IN GENERAL.—If—

"(A) the petitioner makes a timely request for an extension of the period within which the determination must be
made under subsection (b)(1), or
"(B) the administering authority concludes that the parties concerned are cooperating and determines that—
"(i) the case is 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, and
"(ii) additional time is necessary to make the preliminary determination,
then the administering authority may postpone making the
preliminary determination under subsection (b)(1) until not later
than the 210th day after the date on which a petition is filed
under section 7320b), or an investigation is commenced under
section 732(a).
"(2) NOTICE OF POSTPONEMENT.—The administering authority

Publication in
^^'^?'?^
Kegister.

shall notify the parties to the investigation, not later than 20
days before the date on which the preliminary determination
would otherwise be required under subsection (b)(1), if it intends
to postpone making the preliminary determination under paragraph (1). The notification shall include an explanation of the
reasons for the postponement, and notice of the postponement
^j^^jj ^^ published in the Federal Register.
"(d) EFFECT OF DETERMINATION BY THE ADMINISTERING AUTHOR-

ITY.—If the preliminary determination of the administering authority
under subsection (b) is affirmative, the administering authority—

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 165

"(1) shall order the suspension of liquidation of all entries of
merchandise subject to the determination which are entered, or
withdrawn from warehouse, for consumption on or after the date
of publication of the notice of the determination in the Federal
Register,
"(2) shall order the posting of a cash deposit, bond, or other
security, as it deems appropriate, for each entry of the merchandise concerned equal to the estimated average amount by which
the foreign market value exceeds the United States price, and
"(3) shall make available to the Commission all information
upon which such determination was based and which the Commission considers relevant to its injury determination, under
such procedures as the administering authority and the Commission may establish to prevent disclosure, other than with the
consent of the party providing it or under protective order, of any
information to which confidential treatment has been given by
the administering authority.
"(e) CRITICAL CIRCUMSTANCES DETERMINATIONS.—

"(1) IN GENERAL.—If a petitioner alleges critical circumstances
in its original petition, or by amendment at any time more than
20 days before the date of a final determination by the administering authority, then the administering authority shall
promptly determine, on the beisis of the best information available to it at that time, whether there is a reasonable basis to
believe or suspect that—
"(A)(i) 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
"(ii) the person by whom, or for whose account, the
merchandise was imported knew or should have known that
the exporter was selling the merchandise which is the
subject of the investigation at less than its fair value, and
"(B) there have been massive imports of the class or kind
of merchandise which is the subject of the investigation over
a relatively short period.
"(2) SUSPENSION OF UQUIDATION.—If the determination of the

administering authority under paragraph (1) is affirmative, then
any suspension of liquidation ordered under subsection (d)(1)
shall apply, or, if notice of such suspension of liquidation is
already published, be amended to apply, to unliquidated entries
of merchandise entered, or withdrawn from warehouse, for
consumption on or after the date which is 90 days before the date
on which suspension of liquidation was first ordered.
"(f) NOTICE OF DETERMINATIONS.—Whenever the Commission or the Publication in
administering authority makes a determination under this section, it ^^^?^^^
shall notify the petitioner, other parties to the investigation, and the ^^^^ ^^'
other agency of its determination and of the facts and conclusions of
law upon which the determination is based, and it shall publish
notice of its determination in the Federal Register.
"SEC. 734. TERMINATION OR SUSPENSION OF INVESTIGATION.
"(a) TERMINATION OF INVESTIGATION ON WITHDRAWAL OF PETI-

TION.—An investigation under this subtitle may be terminated by
either the administering authority or the Commission after notice to
all parties to the investigation, upon withdrawal of the petition by the
petitioner. The Commission may not terminate an investigation
under the preceding sentence before a preliminary determination is
made by the administering authority under section 733(b).

19 USC 1673c.

93 STAT. 166

PUBLIC LAW 96-39—JULY 26, 1979
"(b) AGREEMENTS T O EUMINATE COMPLETELY SALES AT LESS THAN
FAIR VALUE OR T O CEASE EXPORTS OF MERCHANDISE.—The adminis-

tering authority may suspend an investigation if the exporters of the
merchandise which is the subject of the investigation who account for
substantially all of the imports of that merchandise agree—
"(1) to cease exports of the merchandise to the United States
within 6 months after the date on which the investigation is
suspended, or
"(2) to revise their prices to eliminate completely any amount
by which the foreign market value of the merchandise which is
the subject of the agreement exceeds the United States price of
that merchandise.
"(c) AGREEMENTS ELIMINATING INJURIOUS EFFECT.—
"(1) GENERAL RULE.—If the administering authority

determines that extraordinary circumstances are present in a case, it
may suspend an investigation upon the acceptance of an agreement to revise prices from exporters of the merchandise which is
the subject of the investigation who account for substantially all
of the imports of that merchandise into the United States, if the
agreement will eliminate completely the injurious effect of
exports to the United States of that merchandise and if—
"(A) the suppression or undercutting of price levels of
domestic products by imports of that merchandise will be
prevented, and
"(B) for each entry of each exporter the amount by which
the estimated foreign market value exceeds the United
States price will not exceed 15 percent of the weighted
average amount by which the estimated foreign market
value exceeded the United States price for all less-than-fairvalue entries of the exporter examined during the course of
the investigation.
"(2) DEFINITION OF EXTRAORDINARY CIRCUMSTANCES.—
"(A) EXTRAORDINARY CIRCUMSTANCES.—For purposes of

this subsection, the term 'extraordinary circumstances'
means circumstances in which—
"(i) suspension of an investigation will be more beneficial to the domestic industry than continuation of the
investigation, and
"(ii) the investigation is complex.
"(B) COMPLEX.—For purposes of this paragraph, the term
'complex' means—
"(i) there are a large number of transactions to be
investigated or adjustments to be considered,
"(ii) the issues raised are novel, or
"(iii) the number of firms involved is large.
"(d) ADDITIONAL RULES AND CONDITIONS.—
"(1) PuBuc INTEREST; MONITORING.—The

administering
authority shall not accept an agreement under subsection (b) or
(c) unless—
"(A) it is satisfied that suspension of the investigation is in
the public interest, and
"(B) effective monitoring of the agreement by the United
States is practicable.

"(2) EXPORTS OF MERCHANDISE TO UNITED STATES NOT TO
INCREASE DURING INTERIM PERIOD.—The administering authority

may not accept any agreement under subsection (b)(1) unless that
agreement provides a means of ensuring that the quantity of the
merchandise covered by the agreement exported to the United

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 167

States during the period provided for cessation of exports does
not exceed the quantity of such merchandise exported to the
United States during the most recent representative period
determined by the administering authority.
"(e) SUSPENSION OF INVESTIGATION PROCEDURE.—Before an investi-

gation may be suspended under subsection (b) or (c) the administering
authority shall—
"(1) notify the petitioner of, and consult with the petitioner
concerning, its intention to suspend the investigation, and notify
other parties to the investigation and the Commission not less
than 30 days before the date on which it suspends the investigation,
"(2) provide a copy of the proposed agreement to the petitioner
at the time of the notification, together with an explanation of
how the agreement will be carried out and enforced, and of how
the agreement will meet the requirements of subsections (b) and
(d) or (c) and (d), and
"(3) permit all parties to the investigation to submit comments
and information for the record before the date on which notice of
suspension of the investigation is published under subsection
(f)(1)(A).

Notification.

Copies of
proposed
agreement.

Submittal of
comments and
information.

"(f) EFFECTS OF SUSPENSION OF INVESTIGATION.—

"(1) IN GENERAL.—If the administering authority determines
to suspend an investigation upon acceptance of an agreement
described in subsection (b) or (c), then—
"(A) it shall suspend the investigation, publish notice of Notice.
suspension of the investigation, and issue an affirmative
preliminary determination under section 733(b) with respect
to the merchandise which is the subject of the investigation,
unless it has previously issued such a determination in the
same investigation,
"(B) the Commission shall suspend any investigation it is
conducting with respect to that merchandise, and
"(C) the suspension of investigation shall take effect on the
day on which such notice is published.
"(2) LIQUIDATION OF ENTRIES.—
"(A) CESSATION OF EXPORTS; COMPLETE ELIMINATION OF
DUMPING MARGIN.—If the agreement accepted by the admin-

istering authority is an agreement described in subsection
(b), then—
"(i) notwithstanding the affirmative preliminary
determination required under paragraph (1)(A), the
liquidation of entries of merchandise which is the subject of the investigation shall not be suspended under
section 733(d)(1),
"(ii) if the liquidation of entries of such merchandise
was suspended pursuant to a previous affirmative preliminary determination in the same case with respect to
such merchandise, that suspension of liquidation shall
terminate, and
"(iii) the administering authority shall refund any
cash deposit and release any bond or other security
deposited under section 733(d)(2).
"(B) OTHER AGREEMENTS.—If the agreement accepted by

the administering authority is an agreement described in
subsection (c), the liquidation of entries of the merchandise
subject to the investigation shall be suspended under section
733(d)(1), or, if the liquidation of entries of such merchandise

93 STAT. 168

PUBLIC LAW 96-39—JULY 26, 1979
was suspended pursuant to a previous affirmative preliminary determination in the same case, that suspension of
liquidation shall continue in effect, subject to subsection
(h)(3), but the security required under section 733(d)(2) may
be adjusted to reflect the effect of the agreement.
"(3) WHERE INVESTIGATION IS CONTINUED.—If, pursuant to

subsection (g), the administering authority and the Commission
continue an investigation in which an agreement has been
accepted under subsection (b) or (c), then—
"(A) if the final determination by the administering
authority or the Commission under section 735 is negative,
the agreement shall have no force or effect and the investigation shall be terminated, or
"(B) if the final determinations by the administering
authority and the Commission under such section are
affirmative, the agreement shall remain in force, but the
administering authority shall not issue an antidumping duty
order in the case so long as—
"(i) the agreement remains in force,
"(ii) the agreement continues to meet the requirements of subsections (b) and (d), or (c) and (d), and
"(iii) the parties to the agreement carry out their
obligations under the agreement in accordance with its
terms.
"(g) INVESTIGATION T O B E CONTINUED UPON REQUEST.—If the

administering authority, within 20 days after the date of publication
of the notice of suspension of an investigation, receives a request for
the continuation of the investigation from—
"(1) an exporter or exporters accounting for a significant
proportion of exports to the United States of the merchandise
which is the subject of the investigation, or
"(2) an interested party described in subparagraph (C), (D), or
(E) of section 771(9) which is a party to the investigation,
then the administering authority and the Commission shall continue
the investigation.
"(h) REVIEW OF SUSPENSION.—

"(1) IN GENERAL.—Within 20 days after the suspension of an
investigation under subsection (c), an interested party which is a
party to the investigation and which is described in subparagraph (C), (D), or (E) of section 771(9) may, by petition filed with
the Commission and with notice to the administering authority,
ask for a review of the suspension.
"(2) COMMISSION INVESTIGATION.—Upon receipt of a review

petition under paragraph (1), the Commission shall, within 75
days after the date on which the petition is filed with it,
determine whether the injurious effect of imports of the merchandise which is the subject of the investigation is eliminated
completely by the agreement. If the Commission's determination
under this subsection is negative, the investigation shall be
resumed on the date of publication of notice of such determination as if the affirmative preliminary determination under
section 733(b) had been made on that date.
"(3) SUSPENSION OF LIQUIDATION TO CONTINUE DURING REVIEW

PERIOD.—The suspension of liquidation of entries of the merchandise which is the subject of the investigation shall terminate at
the close of the 20-day period beginning on the day after the date
on which notice of suspension of the investigation is published in
the Federal Register, or, if a review petition is filed under

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 169

paragraph (1) with respect to the suspension of the investigation,
in the case of an affirmative determination by the Commission
under paragraph (2), the date on which notice of an affirmative
determination by the Commission is pubUshed. If the determination of the Commission under paragraph (2) is affirmative, then
the administering authority shall—
"(A) terminate the suspension of liquidation under section
733(d)(1), and
"(B) release any bond or other security, and refund any
cash deposit, required under section 733(d)(2).
"(i) VIOLATION OF AGREEMENT.—

"(1) I N GENERAL.—If the administering authority determines
that an agreement accepted under subsection (b) or (c) is being, or
has been, violated, or no longer meets the requirements of such
subsection (other than the requirement, under subsection (c)(1),
of elimination of injury) and subsection (d), then, on the date of
publication of its determination, it shall—
"(A) suspend liquidation under section 733(d)(1) of unliquidated entries of the merchandise made on the later of—
"(i) the date which is 90 days before the date of
publication of the notice of suspension of liquidation, or
"(ii) the date on which the merchandise, the sale or
export to the United States of which was in violation of
the agreement, or under an agreement which no longer
meets the requirements of subsections (b) and (d), or (c)
and (d), was first entered, or withdrawn from warehouse, for consumption,
"(B) if the investigation was not completed, resume the
investigation as if its affirmative preliminary determination
were made on the date of its determination under this
paragraph,
"(C) if the investigation was completed under subsection
(g), issue an antidumping duty order under section 736(a)
effective with respect to entries of merchandise liquidation
of which was suspended, and
"(D) notify the petitioner, interested parties who are or Notification.
were parties to the investigation, and the Commission of its
action under this paragraph.
"(2) INTENTIONAL VIOLATION TO BE PUNISHED BY CIVIL PEN-

ALTY.—Any person who intentionally violates an agreement
accepted by the administering authority under subsection (b) or
(c) sh£dl be subject to a civil penalty assessed in the same
amount, in the same manner, and under the same procedures, as
the penalty imposed for a fraudulent violation of section 592(a)
19 u s e 1592.
of this Act.
"(j) DETERMINATION NOT TO TAKE AGREEMENT INTO ACCOUNT.—In

making a final determination under section 735, or in conducting a
review under section 751, in a case in which the administering
authority has terminated a suspension of investigation under subsection (i)(l), or continued an investigation under subsection (g), the
Commission and the administering authority shall consider all of the
merchandise which is the subject of the investigation without regard
to the effect of any agreement under subsection (b) or (c).
"SEC. 735. FINAL DETERMINATIONS.
"(a) FINAL DETERMINATION BY ADMINISTERING AUTHORITY.—
"(1) GENERAL RULE.—Within 75 days after the date

of its
preliminary determination under section 733(b), the administering authority shall make a final determination of whether the

19 u s e 1673d.

93 STAT. 170

PUBLIC LAW 96-39—JULY 26, 1979
merchandise which was the subject of the investigation is being,
or is likely to be, sold in the United States at less than its fair
value.
"(2) EXTENSION OF PERIOD FOR DETERMINATION.—The administering authority may postpone making the final determination
under paragraph (1) until not later than the 135th day after the
date on which it published notice of its preliminary determination under section 733(b) if a request in writing for such a
postponement is made by—
"(A) exporters who account for a significant proportion of
exports of the merchandise which is the subject of the
investigation, in a proceeding in which the preliminary
determination by the administering authority under section
733(b) was affirmative, or
"(B) the petitioner, in a proceeding in which the preliminary determination by the administering authority under
section 733(b) was negative.
"(3) CRITICAL CIRCUMSTANCES DETERMINATIONS.—If the final
determination of the administering authority is affirmative,
then that determination, in any investigation in which the
presence of critical circumstances has been alleged under section
733(e), shall also contain a finding of whether—
"(A)(i) there is a history of dumping in the United States or
elsewhere of the class or kind of merchandise which is the
subject of the investigation, or
"(ii) the person by whom, or for whose account, the
merchandise was imported knew or should have known that
the exporter was selling the merchandise which is the
subject of the investigation at less than its fair value, and
"(B) there have been massive imports of the merchandise
which is the subject of the investigation over a relatively
short period.
"(b) FINAL DETERMINATION BY COMMISSION.—

"(1) IN GENERAL.—The Commission shall make a final determination of whether—
"(A) an industry in the United States—
"(i) is materially injured, or
"(ii) is threatened with material injury, or
"(B) the establishment of an industry in the United States
is materially retarded,
by reason of imports of the merchandise with respect to which
the administering authority has made an affirmative determination under subsection (a)(1).
"(2) PERIOD FOR INJURY DETERMINATION FOLLOWING AFFIRMATIVE PRELIMINARY DETERMINATION BY ADMINISTERING AUTHOR-

ITY.—If the preliminary determination by the administering
authority under section 733(b) is affirmative, then the Commission shall make the determination required by paragraph (1)
before the later of^
"(A) the 120th day after the day on which the administering authority makes its affirmative preliminary determination under section 733(b), or
"(B) the 45th day after the day on which the administering
authority makes its affirmative final determination under
subsection (a).
"(3) PERIOD FOR INJURY DETERMINATION FOLLOWING NEGATIVE
PRELIMINARY DETERMINATION BY ADMINISTERING AUTHORITY.—If

the preliminary determination by the administering authority

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 171

under section 733(b) is negative, and its final determination
under subsection (a) is affirmative, then the final determination
by the Commission under this subsection shall be made within 75
days after the date of that affirmative final determination.
"(4) CERTAIN ADDITIONAL FINDINGS.—

"(A) If the finding of the administering authority under
subsection (a)(2) is affirmative, then the final determination
of the Commission shall include a finding as to whether the
material injury is by reason of massive imports described in
subsection (a)(3) to an extent that, in order to prevent such
material injury from recurring, it is necessary to impose the
duty imposed by section 731 retroactively on those imports.
"(B) If the final determination of the Commission is that
there is no material injury but that there is threat of
material injury, then its determination shall also include a
finding as to whether material injury by reason of the
imports of the merchandise with respect to which the administering authority has made an affirmative determination
under subsection (a) would have been found but for any
suspension of liquidation of entries of the merchandise.
"(c) EFFECT OF FINAL DETERMINATIONS.—
"(1) EFFECT OF AFFIRMATIVE DETERMINATION BY THE ADMINIS-

TERING AUTHORITY.—If the determination of the administering

authority under subsection (a) is affirmative, then—
"(A) the administering authority shall make available to
the Commission all information upon which such determination was based and which the Commission considers relevant
to its determination, under such procedures as the administering authority and the Commission may establish to prevent disclosure, other than with the consent of the party
providing it or under protective order, of any information as
to which confidential treatment has been given by the
administering authority, and
"(B) in cases where the preliminary determination by the
administering authority under section 733(b) was negative,
the administering authority shall order under paragraphs
(1) and (2) of section 733(d) the suspension of liquidation and
the posting of a cash deposit, bond, or other security.
"(2) ISSUANCE OF ORDER; EFFECT OF NEGATIVE DETERMINATION.—

If the determinations of the administering authority and the
Commission under subsections (a)(1) and (b)(1) are affirmative,
then the administering authority shall issue an antidumping
duty order under section 736(a). If either of such determinations
is negative, the investigation shall be terminated upon the
publication of notice of that negative determination and the
administering authority shall—
"(A) terminate the suspension of liquidation under section
703(d)(1), and
"(B) release any bond or other security, and refund any
cash deposit, required under section 733(d)(2).
"(3) EFFECT OF NEGATIVE DETERMINATIONS UNDER SUBSECTIONS

(a)(3) AND (b)(4)(A).—If the determination of the administering
authority or the Commission under subsection (a)(3) or (b)(4)(A),
respectively, is negative, then the administering authority
shall—
"(A) terminate any retroactive suspension of liquidation
required under section 733(e)(2), and

^ ,

93 STAT. 172

PUBLIC LAW 96-39—JULY 26, 1979
"(B) release any bond or other security, and refund any
cash deposit required, under section 733(d)(2) with respect to
entries of the merchandise the Uquidation of which was
suspended retroactively under section 733(e)(2).

Publication in
Federal
Register.

19 u s e 1673e.

"(d) PUBLICATION OF NOTICE OF DETERMINATIONS.—Whenever the

administering authority or the Commission makes a determination
under this section, it shall notify the petitioner, other parties to the
investigation, and the other agency of its determination and of the
facts and conclusions of law upon which the determination is based,
and it shall publish notice of its determination in the Federal
Register.
"SEC. 736. ASSESSMENT OF DUTY.

"(a) PUBLICATION OF ANTIDUMPING DUTY ORDER.—Within 7 days
after being notified by the Commission of an affirmative determination under section 735(b), the administering authority shall publish
an antidumping duty order which—
"(1) directs customs officers to assess an antidumping duty
equal to the amount by which the foreign market value of the
merchandise exceeds the United States price of the merchandise,
within 6 months after the date on which the administering
authority receives satisfactory information upon which the
assessment may be based, but in no event later than—
"(A) 12 months after the end of the annual accounting
period of the manufacturer or exporter within which the
merchandise is entered, or withdrawn from warehouse, for
consumption, or
"(B) in the case of merchandise not sold prior to its
importation into the United States, 12 months after the end
of the annual accounting period of the manufacturer or
exporter within which it is sold in the United States to a
person who is not the exporter of that merchandise,
"(2) includes a description of the class or kind of merchandise
to which it applies, in such detail as the administering authority
deems necessary, and
"(3) requires the deposit of estimated antidumping duties
pending liquidation of entries of merchandise at the same time
as estimated normal customs duties on that merchandise are
deposited.
"(b) IMPOSITION OF DUTY.—
"(1) GENERAL RULE.—If

the Commission, in its final determination under section 735(b), finds material injury or threat of
material injury which, but for the suspension of liquidation
under section 733(d)(1) would have led to a finding of material
injury, then entries of the merchandise subject to the antidumping duty order, the liquidation of which has been suspended
under section 733(d)(1), shall be subject to the imposition of
antidumping duties under section 731.
"(2) SPECIAL RULE.—If the Commission, in its final determination under section 735(b), finds threat of material injury, other
than threat of material injury described in paragraph (1), or
material retardation of the establishment of an industry in the
United States, then merchandise subject to an antidumping duty
order which is entered, or withdrawn from warehouse, for
consumption on or after the date of publication of notice of an
affirmative determination of the Commission under section
735(b) shall be subject to the assessment of antidumping duties
under section 731, and the administering authority shall release

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 173

any bond or other security, and refund any cash deposit made, to
secure the payment of antidumping duties with respect to entries
of the merchandise entered, or withdrawn from warehouse, for
consumption before that date.
"(c) SECURITY IN LIEU OF ESTIMATED DUTY PENDING EARLY DETERMINATION OF DUTY.—
"(1) CONDITIONS FOR WAIVER OF DEPOSIT OF ESTIMATED DUTIES.—

The administering authority may permit, for not more than 90
days after the date of pubUcation of an order under subsection
(a), the posting of a bond or other security in Ueu of the deposit of
estimated antidumping duties required under subsection (a)(3) if,
on the basis of information presented to it by any manufacturer,
producer, or exporter in such form and within such time as it
may require, it is satisfied that it will be able to determine,
within 90 days after the date of publication of an order under
subsection (a), 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—
"(A) an affirmative preliminary determination by the
administering authority under section 733(b), or
"(B) 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).
"(2) NOTICE; HEARING.—If the administering authority permits
the posting of a bond or other security in lieu of the deposit of
estimated antidumping duties under paragraph (1), it shall—
"(A) publish notice of its action in the Federal Register, Publication in
Federal
and
Register.
"(B) upon the request of any interested party, hold a
hearing in accordance with section 774 before determining
the foreign market value and the United States price of the
merchandise.
"(3) DETERMINATIONS TO BE BASIS OF ANTIDUMPING DUTY.—The Publication in

administering authority shall publish notice in the Federal Federal
Register.
Register of the results of its determination of foreign market
value and United States price, and that determination shall be
the basis for the assessment of antidumping duties on entries of
merchandise to which the notice under this subsection applies
and also shall be the basis for the deposit of estimated antidumping duties on future entries of merchandise of manufacturers,
producers, or exporters described in paragraph (1) to which the
order issued under subsection (a) applies.
"SEC. 737. TREATMENT OF DIFFERENCE BETWEEN DEPOSIT OF ESTI
MATED ANTIDUMPING DUTY AND FINAL ASSESSED DUTY
UNDER ANTIDUMPING DUTY ORDER.
"(a) DEPOSIT OF ESTIMATED ANTIDUMPING DUTY UNDER SECTION

733(d)(2).—If the amount of a cash deposit collected as security for an
estimated antidumping duty under section 733(d)(2) is different from
the amount of the antidumping duty determined under an antidumping duty order published under section 736, then the difference for
entries of merchandise entered, or withdrawn from warehouse, for
consumption before notice of the affirmative determination of the
Commission under section 735(b) is published shall be—

19 u s e 1673f.

93 STAT, 174

PUBLIC LAW 96-39—JULY 26, 1979
"(1) disregarded, to the extent the cash deposit collected is
lower than the duty under the order, or
"(2) refunded, to the extent the cash deposit is higher than the
duty under the order.
"(b) DEPOSIT OF ESTIMATED ANTIDUMPING DUTY UNDER SECTION

736(a)(3).—If the amount of an estimated antidumping duty deposited
under section 736(a)(3) is different from the amount of the antidumping duty determined under an antidumping duty order published
under section 736, then the difference for entries of merchandise
entered, or withdrawn from warehouse, for consumption after notice
of the affirmative determination of the Commission under section 735
(b) is published shall be—
"(1) collected, to the extent that the deposit under section
736(a)(3) is lower than the duty determined under the order, or
"(2) refunded, to the extent that the deposit under section
736(a)(3) is higher than the duty determined under the order,
together with interest as provided by section 778.
19 u s e 1673g.

"SEC. 738. CONDITIONAL PAYMENT OF ANTIDUMPING DUTY.

"(a) GENERAL RULE.—For all entries, or withdrawals from warehouse, for consumption of merchandise subject to an antidumping
duty order on or after the date of publication of such order, no
customs officer may deliver merchandise of that class or kind to the
person by whom or for whose account it was imported unless that
person complies with the requirements of subsection (b) and deposits
with the appropriate customs officer an estimated antidumping duty
in an amount determined by the administering authority.
"(b) IMPORTER REQUIREMENTS.—In order to meet the requirements
of this subsection, a person shall—
"(1) furnish, or arrange to have furnished, to the appropriate
customs officer such information as the administering authority
deems necessary for determining the United States price of the
merchandise imported by or for the account of that person, and
such other information as the administering authority deems
necessary for ascertaining any antidumping duty to be imposed
under this title;
"(2) maintain and furnish to the customs officer such records
concerning the sale of the merchandise as the administering
authority, by regulation, requires;
"(3) state under oath before the customs officer that he is not
an exporter, or if he is an exporter, declare under oath at the
time of entry the exporter's sales price of the merchandise to the
customs officer if it is then known, or, if not, so declare within 30
days after the merchandise has been sold, or has been made the
subject of an agreement to be sold, in the United States; and
"(4) pay, or agree to pay on demand, to the customs officer the
amount of antidumping duty imposed under section 731 on that
merchandise.
19 u s e 1673h.

"SEC. 739. DUTIES OF CUSTOMS OFFICERS.

"In the case of all imported merchandise of a class or kind as to
which the administering authority has published an antidumping
duty order under section 736 under which entries have not been
liquidated, the appropriate customs officer shall, by all reasonable
ways and means and consistently with the provisions of this title,
ascertain and determine, or estimate, the foreign market value, the
United States price, and any other information which the administer-

PUBLIC LAW 9 6 - 3 9 - J U L Y 26, 1979

93 STAT. 175

ing authority deems necessary for the purposes of administering this
title.
"SEC. 740. ANTIDUMPING DUTY TREATED AS REGULAR DUTY FOR DRAWBACK PURPOSES.

19 u s e 1673i.

"The antidumping duty imposed by section 731 shall be treated in
all respects as a normal customs duty for the purpose of any law
relating to the drawback of customs duties.
"Subtitle C—Review of Determinations
"SEC. 751. ADMINISTRATIVE REVIEW OF DETERMINATIONS.

19 u s e 1675.

"(a) PERIODIC REVIEW OF AMOUNT OF DUTY.—

"(1) IN GENERAL.—At least once during each 12-month period
beginning on the anniversary of the date of publication of a
countervailing duty order under this title or under section 803 of
this Act, an antidumping duty order under this title or a finding
under the Antidumping Act, 1921, or a notice of the suspension of
an investigation, the administering authority, after publication
of notice of such review in the Federal Register, shall—
"(A) review and determine the amount of any net subsidy,
"(B) review, and determine (in accordance with paragraph
(2)), the amount of any antidumping duty, and
"(C) review the current status of, and compliance with,
any agreement by reason of which an investigation was
suspended, and review the amount of any net subsidy or
margin of sales at less than fair value involved in the
agreement,
and shall publish the results of such review, together with notice
of any duty to be assessed, estimated duty to be deposited, or
investigation to be resumed in the Federal Register.

Publication in
Federal
Register.
19 u s e 1303.
19 u s e 160 note.

Publication in
Federal
Register.

"(2) DETERMINATION OF ANTIDUMPING DUTIES.—For the purpose

of paragraph (1)(B), the administering authority shall determine—
"(A) the foreign market value and United States price of
each entry of merchandise subject to the antidumping duty
order and included within that determination, and
"(B) the amount, if any, by which the foreign market value
of each such entry exceeds the United States price of the
entry.
The administering authority, without revealing confidential in- Publication in
formation, shall publish notice of the results of the determina- Federal
Register.
tion of antidumping duties in the Federal Register, and that
determination shall be the basis for the assessment of antidumping duties on entries of the merchandise included within the
determination and for deposits of estimated duties.
"(b) REVIEWS UPON INFORMATION OR REQUEST.—

"(1) I N GENERAL.—Whenever the administering authority or Publication in
the Commission receives information concerning, or a request for Federal
the review of, an agreement accepted under section 704 or 734 or Register.
an affirmative determination made under section 704(h)(2),
705(a), 705(b), 734(h)(2), 735(a), or 735(b), which shows changed
circumstances sufficient to warrant a review of such determination, it shall conduct such a review after publishing notice of the
review in the Federal Register. In reviewing its determination
under section 704(h)(2) or 734(h)(2), the Commission shall consider whether, in the light of changed circumstances, an

93 STAT. 176

PUBLIC LAW 96-39—JULY 26, 1979
agreement accepted under section 704(c) or 734(c) continues to
eliminate completely the injurious effects of imports of the
merchandise.
"(2) LIMITATION ON PERIOD FOR REVIEW.—In the absence of good
cause shown—
"(A) the Commission may not review a determination
under section 705(b) or 735(b), and
"(B) the administering authority may not review a determination under section 705(a) or 735(a), or the suspension of
an investigation suspended under section 704 or 734,
less than 24 months after the date of publication of notice of that
determination or suspension.
"(c) REVOCATION OF COUNTERVAILING DUTY ORDER OR ANTIDUMPING

DUTY ORDER.—The administering authority may revoke, in whole or
in part, a countervailing duty order or an antidumping duty order, or
terminate a suspended investigation, after review under this section.
Any such revocation or termination shall apply with respect to
unliquidated entries of merchandise entered, or withdrawn from
warehouse, for consumption on and after a date determined by the
administering authority.
"(d) HEARINGS.—Whenever the administering authority or the
Commission conducts a review under this section it shall, upon the
request of any interested party, hold a hearing in accordance with
section 774(b) in connection with that review.
"(e) DETERMINATION THAT BASIS FOR SUSPENSION N O LONGER

EXISTS.—If the determination of the Commission under the last
sentence of subsection (b)(1) is negative, the agreement shall be
treated as not accepted, beginning on the date of the publication of
the Commission's determination, and the administering authority
and the Commission shall proceed, under section 704(i) or 734(i), as if
the agreement had been violated on that date, except that no duty
under any order subsequently issued shall be assessed on merchandise entered, or withdrawn from warehouse, for consumption before
that date.
"Subtitle D—General Provisions
19 u s e 1677.

"SEC. 771. DEFINITIONS; SPECIAL RULES.

"For purposes of this title—
"(1) ADMINISTERING AUTHORITY.—The term 'administering
authority' means the Secretary of the Treasury, or any other
officer of the United States to whom the responsibility for
carrying out the duties of the administering authority under
this title are transferred by law.
"(2) COMMISSION.—The term 'Commission' means the United
States International Trade Commission.
"(3) COUNTRY.—The term 'country' means a foreign country, a
political subdivision, dependent territory, or possession of a
foreign country, and, except for the purpose of antidumping
proceedings, may include an association of 2 or more foreign
countries, political subdivisions, dependent territories, or possessions of countries into a customs union outside the United States.
"(4) INDUSTRY.—

"(A) IN GENERAL.—The term 'industry' means the domestic producers as a whole of a like product, or those producers
whose collective output of the like product constitutes a
major proportion of the total domestic production of that
product.

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 177

"(B) RELATED PARTIES.—When some producers are related
to the exporters or importers, or are themselves importers of
the allegedly subsidized or dumped merchandise, the term
'industry' may be applied in appropriate circumstances by
excluding such producers from those included in that industry.
"(C) REGIONAL INDUSTRIES.—In appropriate circumstances, the United States, for a particular product market,
may be divided into 2 or more markets and the producers
within each market may be treated as if they were a
separate industry if—
"(i) the producers within such market sell all or
almost all of their production of the like product in
question in that market, and
"(ii) the demand in that market is not supplied, to any
substantial degree, by producers of the product in question located elsewhere in the United States.
In such appropriate circumstances, material injury, the
threat of material injury, or material retardation of the
establishment of an industry may be found to exist with
respect to an industry even if the domestic industry as a
whole, or those producers whose collective output of a like
product constitutes a major proportion of the total domestic
production of that product, is not injured, if there is a
concentration of subsidized or dumped imports into such an
isolated market and if the producers of all, or almost all, of
the production within that market are being materially
injured or threatened by material injury, or if the establishment of an industry is being materially retarded, by reason
of the subsidized or dumped imports.
"(D) PRODUCT LINES.—The effect of subsidized or dumped
imports shall be assessed in relation to the United States
production of a like product if available data permit the
separate identification of production in terms of such criteria as the production process or the producer's profits. If the
domestic production of the like product has no separate
identity in terms of such criteria, then the effect of the
subsidized or dumped imports shall be assessed by the
examination of the production of the narrowest group or
range of products, which includes a like product, for which
the necessary information can be provided.
"(5) SUBSIDY.—The term 'subsidy' has the same meaning as the
term 'bounty or grant' as that term is used in section 303 of this
Act, and includes, but is not limited to, the following:
19 USC 1303.
"(A) Any export subsidy described in Annex A to the
Agreement (relating to illustrative list of export subsidies).
"(B) 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.
"(iii) The grant of funds or forgiveness of debt to cover
operating losses sustained by a specific industry.

59-194 O — 81

14 : QL3

93 STAT. 178

PUBLIC LAW 96-39—JULY 26, 1979
"(iv) The assumption of any costs or expenses of
manufacture, production, or distribution.
"(6) NET SUBSIDY.—For the purpose of determining the net
subsidy, the administering authority may subtract from the
gross subsidy the amount of—
"(A) any application fee, deposit, or similar payment paid
in order to qualify for, or to receive, the benefit of the
subsidy,
"(B) any loss in the value of the subsidy resulting from its
deferred receipt, if the deferral is mandated by Government
order, and
"(C) export taxes, duties, or other charges levied on the
export of merchandise to the United States specifically
intended to offset the subsidy received.
"(7) MATERIAL INJURY.—

"(A) IN GENERAL.—The term 'material injury' means harm
which is not inconsequential, immaterial, or unimportant.
"(B)

VOLUME AND CONSEQUENT IMPACT.—In making its

determinations under sections 703(a), 705(b), 733(a), and
735(b), the Commission 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 that merchandise on
prices in the United States for like products, and
"(iii) the impact of imports of such merchandise on
domestic producers of like products.
"(C) EVALUATION OF VOLUME AND OF PRICE EFFECTS.—For

purposes of subparagraph (B)—
"(i) VOLUME.—In evaluating the volume of imports of
merchandise, the Commission shall consider whether
the volume of imports of the merchandise, or any
increase in that volume, either in absolute terms or
relative to production or consumption in the United
States, is significant.
"(ii) PRICE.—In evaluating the effect of imports of
such merchandise on prices, the Commission shall consider whether—
"(I) there has been significant price undercutting
by the imported merchandise as compared with the
price of like products of the United States, and
"(II) the effect of imports of such merchandise
otherwise depresses prices to a significant degree or
prevents price increases, which otherwise would
have occurred, to a significant degree.
"(iii) IMPACT ON AFFECTED INDUSTRY.—In examining
the impact on the affected industry, the Commission
shall evaluate all relevant economic factors which have
a bearing on the state of the industry, including, but not
limited to—
"(I) actual and potential decline in output, sales,
market share, profits, productivity, return on
investments, and utilization of capacity,
"(II) factors affecting domestic prices, and
"(III) actual and potential negative effects on cash
flow, inventories, employment, wages, growth,
ability to raise capital, and investment.
"(D) SPECIAL RULES FOR AGRICULTURAL PRODUCTS.—

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 179

"(i) The Commission shall not determine that there is
no material injury or threat of material injury to United
States producers of an agricultural commodity merely
because the prevailing market price is at or above the
minimum support price.
"(ii) In the case of agricultural products, the Commission shall consider any increased burden on government
income or price support programs.
"(E) SPECIAL RULES.—For purposes of this paragraph—
"(i) NATURE OF SUBSIDY.—In determining whether
there is a threat of material injury, the Commission
shall consider such information as may be presented to
it by the administering authority as to the nature of the
subsidy (particularly as to whether the subsidy is an
export subsidy inconsistent with the Agreement) provided by a foreign country and the effects likely to be
caused by the subsidy.
"(ii) STANDARD FOR DETERMINATION.—The presence or

absence of any factor which the Commission is required
to evaluate under subparagraph (C) or (D) shall not
necessarily give decisive guidance with respect to the
determination by the Commission of material injury.
"(8) AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES;

AGREEMENT.—The terms 'Agreement on Subsidies and Countervailing Measures' and 'Agreement' mean the Agreement on
Interpretation and Application of Articles VI, XVI, and XXIII of
the General Agreement on Tariffs and Trade (relating to subsidies and countervailing measures) approved under section 2(a) of
the Trade Agreements Act of 1979.
"(9) INTERESTED PARTY.—The term 'interested party' means—
"(A) a foreign manufacturer, producer, or exporter, or the
United States importer, of merchandise which is the subject
of an investigation under this title or a trade or business
association a majority of the members of which are importers of such merchandise,
"(B) the government of a country in which such merchandise is produced or manufactured,
"(C) a manufacturer, producer, or wholesaler in the
United States of a like product,
"(D) a certified union or recognized union or group of
workers which is representative of an industry engaged in
the manufacture, production, or wholesale in the United
States of a like product, and
"(E) a trade or business association a majority of whose
members manufacture, produce, or wholesale a like product
in the United States.
"(10) LIKE PRODUCT.—The term 'like product' means a product
which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation under
this title.
"(11) AFFIRMATIVE DETERMINATIONS BY DIVIDED COMMISSION.—

If the Commissioners voting on a determination by the Commission are evenly divided as to whether the determination should
be affirmative or negative, the Commission shall be deemed to
have made an affirmative determination. For the purpose of
applying this paragraph when the issue before the Commission is
to determine whether there is—
"(A) material injury to an industry in the United States,

93 STAT. 180

PUBLIC LAW 96-39—JULY 26, 1979
"(B) threat of material injury to such an industry, or
"(C) material retardation of the establishment of an industry in the United States,
by reason of imports of the merchandise, an affirmative vote on
any of the issues shall be treated as a vote that the determination
should be affirmative.
"(12) ATTRIBUTION OF MERCHANDISE TO COUNTRY OF MANUFAC-

TURE OR PRODUCTION.—For purposes of subtitle A, merchandise
shall be treated as the product of the country in which it was
manufactured or produced without regard to whether it is
imported directly from that country and without regard to
whether it is imported in the same condition as when exported
from that country or in a changed condition by reason of
remanufacture or otherwise.
"(13) EXPORTER.—For the purpose of determining United
States price, the term 'exporter' includes the person by whom or
for whose account the merchandise is imported into the United
States if—
"(A) such person is the agent or principal of the exporter,
manufacturer, or producer;
"(B) such person owns or controls, directly or indirectly,
through stock ownership or control or otherwise, any interest in the business of the exporter, manufacturer, or producer;
"(C) the exporter, manufacturer, or producer owns or
controls, directly or indirectly, through stock ownership or
control or otherwise, any interest in any business conducted
by such person; or
"(D) any person or persons, jointly or severally, directly or
indirectly, through stock ownership or control or otherwise,
own or control in the aggregate 20 percent or more of the
voting power or control in the business carried on by the
person by whom or for whose account the merchandise is
imported into the United States, and also 20 percent or more
of such power or control in the business of the exporter,
manufacturer, or producer.
"(14) SOLD OR, IN THE ABSENCE OF SALES, OFFERED FOR SALE.—

The term 'sold or, in the absence of sales, offered for sale' means
sold or, in the absence of sales, offered—
"(A) to all purchasers at wholesale, or
"(B) in the ordinary course of trade to one or more selected
purchasers at wholesale at a price which fairly reflects the
market value of the merchandise,
without regard to restrictions as to the disposition or use of the
merchandise by the purchaser except that, where such restrictions are found to affect the market value of the merchandise,
adjustment shall be made therefor in calculating the price at
which the merchandise is sold or offered for sale.
"(15) ORDINARY COURSE OF TRADE.—The term 'ordinary course
of trade' means the conditions and practices which, for a reasonable time prior to the exportation of the merchandise which is
the subject of an investigation, have been normal in the trade
under consideration with respect to merchandise of the same
class or kind.
"(16) SUCH OR SIMILAR MERCHANDISE.—The term 'such or similar merchandise' means merchandise in the first of the following
categories in respect of which a determination for the purposes of
subtitle B of this title can be satisfactorily made:

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 181

"(A) The merchandise which is the subject of an investigation and other merchandise which is identical in physical
characteristics with, and was produced in the same country
by the same person as, that merchandise.
"(B) Merchandise—
"(i) produced in the same country and by the same
person as the merchandise which is the subject of the
investigation,
"(ii) like that merchandise in component material or
materials and in the purposes for which used, and
"(iii) approximately equal in commercial value to that
merchandise.
"(C) Merchandise—
"(i) produced in the same country and by the same
person and of the same general class or kind as the
merchandise which is the subject of the investigation,
"(ii) like that merchandise in the purposes for which
used, and
"(iii) which the administering authority determines
may reasonably be compared with that merchandise.
"(17) USUAL WHOLESALE QUANTITIES.—The term 'usual wholesale quantities', in any case in which the merchandise which is
the subject of the investigation is sold in the market under
consideration at different prices for different quantities, means
the quantities in which such merchandise is there sold at the
price or prices for one quantity in an aggregate volume which is
greater than the aggregate volume sold at the price or prices for
any other quantity.
"SEC. 772. UNITED STATES PRICE.

"(a) UNITED STATES PRICE.—For purposes of this title, the term
'United States price' means the purchase price, or the exporter's sales
price, of the merchandise, whichever is appropriate,
"(b) PURCHASE PRICE.—For purposes of this section, the term
'purchase price' means the price at which merchandise is purchased,
or agreed to be purchased, prior to the date of importation, from the
manufacturer or producer of the merchandise for exportation to the
United States. Appropriate adjustments for costs and expenses under
subsection (d) shall be made if they are not reflected in the price paid
by the person by whom, or for whose account, the merchandise is
imported.
"(c) EXPORTER'S SALES PRICE.—For purposes of this section, the
term 'exporter's sales price' means the price at which merchandise is
sold or agreed to be sold in the United States, before or after the time
of importation, by or for the account of the exporter, as adjusted
under subsections (d) and (e).
"(d) ADJUSTMENTS TO PURCHASE PRICE AND EXPORTER'S SALES

PRICE.—The purchase price and the exporter's sales price shall be
adjusted by being—
"(1) increased by—
"(A) when not included in such price, the cost of all
containers and coverings and all other costs, charges, and
expenses incident to placing the merchandise in condition,
packed ready for shipment to the United States,
"(B) the amount of any import duties imposed by the
country of exportation which have been rebated, or which
have not been collected, by reason of the exportation of the
merchandise to the United States;

19 USC 1677a.

93 STAT. 182

19 use 1303.

PUBLIC LAW 96-39—JULY 26, 1979
"(C) the amount of any taxes imposed in the country of
exportation directly upon the exported merchandise or components thereof, which have been rebated, or which have not
been collected, by reason of the exportation of the merchandise to the United States, but only to the extent that such
taxes are added to or included in the price of such or similar
merchandise when sold in the country of exportation; and
"(D) the amount of any countervailing duty imposed on
the merchandise under subtitle A of this title or section 303
of this Act to offset an export subsidy, and
"(2) reduced by—
"(A) except as provided in paragraph (1)(D), the amount, if
any, included in such price, attributable to any additional
costs, charges, and expenses, and United States import
duties, incident to bringing the merchandise from the place
of shipment in the country of exportation to the place of
delivery in the United States; and
"(B) the amount, if included in such price, of any export
tax, duty, or other charge imposed by the country of exportation oil the exportation of the merchandise to the United
States other than an export tax, duty, or other charge
described in section 771(6)(C).
"(e) ADDITIONAL ADJUSTMENTS TO EXPORTER'S SALES PRICE.—For

purposes of this section, the exporter's sales price shall also be
adjusted by being reduced by the amount, if any, of—
"(1) commissions for selling in the United States the particular
merchandise under consideration,
"(2) expenses generally incurred by or for the account of the
exporter in the United States in selling identical or substantially
identical merchandise, and
"(3) any increased value, including additional material and
labor, resulting from a process of manufacture or assembly
performed on the imported merchandise after the importation of
the merchandise and before its sale to a person who is not the
exporter of the merchandise.
19 u s e 1677b.

"SEC. 773. FOREIGN MARKET VALUE.
"(a) DETERMINATION; FICTITIOUS MARKET; SALES AGENCIES.—For

purposes of this title—
"(1) IN GENERAL.—The foreign market value of imported merchandise shall be the price, at the time of exportation of such
merchandise to the United States—
"(A) at which such or similar merchandise is sold or, in the
absence of sales, offered for sale in the principal markets of
the country from which exported, in the usual wholesale
quantities and in the ordinary course of trade for home
consumption, or
"(B) if not so sold or offered for sale for home consumption,
or if the administering authority determines that the quantity sold for home consumption is so small in relation to the
quantity sold for exportation to countries other than the
United States as to form an inadequate basis for comparison,
then the price at which so sold or offered for sale for
exportation to countries other than the United States,
increased by, when not included in such price, the cost of all
containers and coverings and all other costs, charges, and
expenses incident to placing the merchandise in condition packed
ready for shipment to the United States, except that in the case

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 183

of merchandise purchased or agreed to be purchased by the
person by whom or for whose account the merchandise is
imported, prior to the time of importation, the foreign market
value shall be ascertained as of the date of such purchase or
agreement to purchase. In the ascertainment of foreign market
value for the purposes of this title no pretended sale or offer for
sale, and no sale or offer for sale intended to establish a fictitious
market, shall be taken into account.
"(2) U S E OF CONSTRUCTED VALUE.—If the administering author-

ity determines that the foreign market value of imported merchandise cannot be determined under paragraph (1)(A), then,
notwithstanding paragraph (1)(B), the foreign market value of
the merchandise may be the constructed value of that merchandise, as determined under subsection (e).
"(3) INDIRECT SALES AND OFFERS FOR SALE.—If such or similar
merchandise is sold or, in the absence of sales, offered for sale
through a sales agency or other organization related to the seller
in any of the respects described in section 771(13), the prices at
which such or similar merchandise is sold or, in the absence of
sales, offered for sale by such sales agency or other organization
may be used in determining the foreign market value.
"(4) OTHER ADJUSTMENTS.—In determining foreign

market

value, if it is established to the satisfaction of the administering
authority that the amount of any difference between the United
States price and the foreign market value (or that the fact that
the United States price is the same as the foreign market value)
is wholly or partly due to—
"(A) the fact that the wholesale quantities, in which such
or similar merchandise is sold or, in the absence of sales,
offered for sale, for exportation to, or in the principal
markets of, the United States, as appropriate, in the ordinary course of trade, are less or are greater than the
wholesale quantities in which such or similar merchandise is
sold or, in the absence of sales, offered for sale, in the
principal markets of the country of exportation in the
ordinary course of trade for home consumption (or, if not so
sold for home consumption, then for exportation to countries
other than the United States);
"(B) other differences in circumstances of sale; or
"(C) the fact that merchandise described in paragraph (B)
or (C) of section 771(16) is used in determining foreign
market value,
then due allowance shall be made therefor.
"(b) SALES AT LESS THAN COST OF PRODUCTION.—Whenever the

administering authority has reasonable grounds to believe or suspect
that sales in the home market of the country of exportation, or, as
appropriate, to countries other than the United States, have been
made at prices which represent less than the cost of producing the
merchandise in question, it shall determine whether, in fact, such
sales were made at less than the cost of producing the merchandise. If
the administering authority determines that sales made at less than
cost of production—
"(1) have been made over an extended period of time and in
substantial quantities, and
"(2) are not at prices which permit recovery of all costs within a
reasonable period of time in the normal course of trade,
such sales shall be disregarded in the determination of foreign
market value. Whenever sales are disregarded by virtue of having

93 STAT. 184

PUBLIC LAW 96-39—JULY 26, 1979

been made at less than the cost of production and the remaining
sales, made at not less than cost of production, are determined to be
inadequate as a basis for the determination of foreign market value
under subsection (a), the administering authority shall employ the
constructed value of the merchandise to determine its foreign market
value.
"(c) STATE-CONTROLLED ECONOMIES.—If available information indicates to the administering authority that the economy of the country
from which the merchandise is exported is State-controlled to an
extent that sales or offers of sales of such or similar merchandise in
that country or to countries other than the United States do not
permit a determination of foreign market value under subsection (a)
of this section, the administering authority shall determine the
foreign market value of the merchandise on the basis of the normal
costs, expenses, and profits as reflected by either—
"(1) the prices, determined in accordance with subsection (a) of
this section, at which such or similar merchandise of a non-Statecontrolled-economy country or countries is sold either—
"(A) for consumption in the home market of that country
t
or countries, or
"(B) to other countries, including the United States; or
"(2) the constructed value of such or similar merchandise in a
non-State-controlled-economy country or countries as determined under subsection (e).
"(d) SPECIAL RULE FOR CERTAIN MULTINATIONAL CORPORATIONS.—

Whenever, in the course of an investigation under this title, the
administering authority determines that—
"(1) merchandise exported to the United States is being produced in facilities which are owned or controlled, directly or
indirectly, by a person, firm or corporation which also owns or
controls, directly or indirectly, other facilities for the production
of such or similar merchandise which are located in another
country or countries;
"(2) the sales of such or similar merchandise by the company
concerned in the home market of the exporting country are
nonexistent or inadequate as a basis for comparison with the
sales of the merchandise to the United States; and
"(3) the foreign market value of such or similar merchandise
produced in one or more of the facilities outside the country of
exportation is higher than the foreign market value of such or
similar merchandise produced in the facilities located in the
country of exportation,
it shall determine the foreign market value of such merchandise by
reference to the foreign market value at which such or similar
merchandise is sold in substantial quantities by one or more facilities
outside the country of exportation. The administering authority, in
making any determination under this paragraph, shall make adjustments for the difference between the costs of production (including
taxes, labor, materials, and overhead) of such or similar merchandise
produced in facilities outside the country of exportation and costs of
production of such or similar merchandise produced in the facilities
in the country of exportation, if such differences are demonstrated to
its satisfaction. For the purposes of this subsection, in determining
foreign market value of such or similar merchandise produced in a
country outside of the country of exportation, the administering
authority shall determine its price at the time of exportation from
the country of exportation and shall make any adjustments required
by subsection (a) of this section for the cost of all containers and

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 185

coverings and all other costs, charges, and expenses incident to
placing the merchandise in condition packed ready for shipment to
the United States by reference to such costs in the country of
exportation.
"(e) CONSTRUCTED VALUE.—

"(1) DETERMINATION.—For the purposes of this title, the constructed value of imported merchandise shall be the sum of—
"(A) the cost of materials (exclusive of any internal tax
applicable in the country of exportation directly to such
materials or their disposition, but remitted or refunded upon
the exportation of the article in the production of which such
materials are used) and of fabrication or other processing of
any kind employed in producing such or similar merchandise, at a time preceding the date of exportation of the
merchandise under consideration which would ordinarily
permit the production of that particular merchandise in the
ordinary course of business;
*'(B) an amount for general expenses and profit equal to
that usually reflected in sales of merchandise of the same
general class or kind as the merchandise under consideration which are made by producers in the country of exportation, in the usual wholesale quantities and in the ordinary
course of trade, except that—
"(i) the amount for general expenses shall not be less
than 10 percent of the cost as defined in subparagraph
(A), a n d

"(ii) the amount for profit shall not be less than 8
percent of the sum of such general expenses and cost;
and
"(C) the cost of all containers and coverings of whatever
nature, and all other expenses incidental to placing the
merchandise under consideration in condition, packed ready
for shipment to the United States.
"(2) TRANSACTIONS DISREGARDED; BEST EVIDENCE.—For the purposes of this subsection, a transaction directly or indirectly
between persons specified in any one of the subparagraphs in
paragraph (3) of this subsection may be disregarded if, in the case
of any element of value required to be considered, the amount
representing that element does not fairly reflect the amount
usually reflected in sales in the market under consideration of
merchandise under consideration. If a transaction is disregarded
under the preceding sentence and there are no other transactions available for consideration, then the determination of the
amount required to be considered shall be based on the best
evidence available as to what the amount would have been if the
transaction had occurred between persons not specified in any
one of the subparagraphs in paragraph (3) of this section.
"(3) RELATED PARTIES.—The persons referred to in paragraph
(2) of this subsection are:
"(A) Members of a family, including brothers and sisters
(whether by the whole or half blood), spouse, ancestors, and
lineal descendants.
"(B) Any officer or director of an organization and such
organization.
"(C) Partners.
"(D) Employer and employee.
"(E) Any person directly or indirectly owning, controlling,
or holding with power to vote, 5 percent or more of the

, .. ^

, j ,s.

93 STAT. 186

PUBLIC LAW 96-39—JULY 26, 1979
outstanding voting stock or shares of any organization and
such organization.
"(F) Two or more persons directly or indirectly controlling,
controlled by, or under common control with, any person.
"(f) AUTHORITY TO USE SAMPUNG TECHNIQUES AND TO DISREGARD
INSIGNIFICANT ADJUSTMENTS.—For the purpose of determining for-

eign market value under this section, the administering authority
may—
"(1) use averaging or generally recognized sampling techniques
whenever a significant volume of sales is involved or a significant
number of adjustments to prices is required, and
"(2) decline to take into account adjustments which are insignificant in relation to the price or value of the merchandise.
19 u s e 1677c.

"SEC. 774. HEARINGS.

Publication in
Federal
Register.

"(a) INVESTIGATION HEARINGS.—The administering authority and
the Commission shall each hold a hearing in the course of an
investigation upon the request of any party to the investigation
before making a final determination under section 705 or 735.
"(b) PROCEDURES.—Any hearing required or permitted under this
title shall be conducted after notice published in the Federal Register,
and a transcript of the hearing shall be prepared and made available
to the public. The hearing shall not be subject to the provisions of
subchapter II of chapter 5 of title 5, United States Code, or to section
702 of such title.

5 u s e 551, 702.
19 u s e 1677d.

"SEC. 775. SUBSIDY PRACTICES DISCOVERED DURING AN INVESTIGATION.

"If, in the course of an investigation under this title, the administering authority discovers a practice which appears to be a subsidy,
but was not included in the matters alleged in a countervailing duty
petition, then the administering authority—
"(1) shall include the practice in the investigation if it appears
to be a subsidy with respect to the merchandise which is the
subject of the investigation, or
"(2) shall transfer the information concerning the practice
(other than confidential information) to the library maintained
under section 777(a)(1), if the practice appears to be a subsidy
with respect to any other merchandise.
19 u s e 1677e.

"SEC. 776. VERIFICATION OF INFORMATION.

"(a) GENERAL RULE.—Except with respect to information the verification of which is waived under section 733(b)(2), the administering
authority shall verify all information relied upon in making a final
determination in an investigation. In publishing such a determination, the administering authority shall report the methods and
procedures used to verify such information. If the administering
authority is unable to verify the accuracy of the information submitted, it shall use the best information available to it as the basis for its
determination, which may include the information submitted in
support of the petition.
"(b) DETERMINATIONS TO BE MADE ON BEST INFORMATION AVAIL-

ABLE.—In making their determinations under this title, the administering authority and the Commission shall, whenever a party or any
other person refuses or is unable to produce information requested in
a timely manner and in the form required, or otherwise significantly
impedes an investigation, use the best information otherwise available.
,.v,w;i K^.^r. v..i;,.-'.M =./

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 187

'SEC. 777. ACCESS TO INFORMATION.

19 USC 1677f.

"(a) INFORMATION GENERALLY MADE AVAILABLE.—
"(1) PUBLIC INFORMATION FUNCTION.—There

shall be established a library of information relating to foreign subsidy practices and countervailing measures. Copies of material in the
library shall be made available to the public upon payment of the
costs of preparing such copies.
"(2) PROGRESS OF INVESTIGATION REPORTS.—The administering
authority and the Commission shall, from time to time upon
request, inform the parties to an investigation of the progress of
that investigation.
"(3) Ex PARTE MEETINGS.—The administering authority and

the Commission shall maintain a record of ex parte meetings
between—
"(A) interested parties or other persons providing factual
information in connection with an investigation, and
"(B) the person charged with making the determination,
and any person charged with making a final recommendation to that person, in connection with that investigation.
The record of the ex parte meeting shall include the identity of
the persons present at the meeting, the date, time, and place of
the meeting, and a summary of the matters discussed or submitted. The record of the ex parte meeting shall be included in the
record of the proceeding.
"(4) SUMMARIES; NONCONFIDENTIAL SUBMISSIONS.—The administering authority and the Commission may disclose—
"(A) any confidential information received in the course of
a proceeding if it is disclosed in a form which cannot be
associated with, or otherwise be used to identify, operations
of a particular person, and
"(B) any information submitted in connection with a
proceeding which is not designated as confidential by the
person submitting it.
"(b) CONFIDENTIAL INFORMATION.—
"(1) CONFIDENTIALITY MAINTAINED.—Except

as provided in subsection (a)(4)(A) and subsection (c), information submitted to the
administering authority or the Commission which is designated
as confidential by the person submitting it shall not be disclosed
to any person (other than an officer or employee of the administering authority or the Commission who is directly concerned
with carrying out the investigation in connection with which the
information is submitted) without the consent of the person
submitting it. The administering authority and the Commission
may require that information for which confidential treatment is
requested be accompanied by a non-confidential summary in
sufficient detail to permit a reasonable understanding of the
substance of the information submitted in confidence, or a
statement that the information is not susceptible to summary,
accompanied by a statement of the reasons in support of the
contention.
"(2)

UNWARRANTED

DESIGNATION.—If

the

administering

authority or the Commission determines, on the basis of the
nature and extent of the information or its availability from
public sources, that designation of any information as confidential is unwarranted, then it shall notify the person who submitted it and ask for an explanation of the reasons for the
designation. Unless that person persuades the administering
authority or the Commission that the designation is warranted,

- __

93 STAT. 188

PUBLIC LAW 96-39—JULY 26, 1979
or withdraws the designation, the administering authority or
the Commission, as the case may be, shall return it to the party
submitting it.

"(c) LIMITED DISCLOSURE OF CERTAIN CONFIDENTIAL INFORMATION
UNDER PROTECTIVE ORDER.—
"(1) DISCLOSURE BY ADMINISTERING AUTHORITY OR COMMISSION.—

"(A) I N GENERAL.—Upon receipt of an application, which
describes with particularity the information requested and
sets forth the reasons for the request, the administering
authority and the Commission may make confidential information submitted by any other party to the investigation
available under a protective order described in subparagraph (B).
"(B) PROTECTIVE ORDER.—The protective order under
which information is made available shall contain such
requirements as the administering authority or the Commission may determine by regulation to be appropriate. The
administering authority and the Commission shall provide
by regulation for such sanctions as the administering
authority and the Commission determine to be appropriate,
including disbarment from practice before the agency.
"(2) DISCLOSURE UNDER COURT ORDER.—If the administering

authority denies a request for information under paragraph (1),
or the Commission denies a request for confidential information
submitted by the petitioner or an interested party in support of
the petitioner concerning the domestic price or cost of production
of the like product, then application may be made to the United
States Customs Court for an order directing the administering
authority or the Commission to make the information available.
After notification of all parties to the investigation and after an
opportunity for a hearing on the record, the court may issue an
order, under such conditions as the court deems appropriate,
which shall not have the effect of stopping or suspending the
investigation, directing the administering authority or the Commission to make all or a portion of the requested information
described in the preceding sentence available under a protective
order and setting forth sanctions for violation of such order if the
court finds that, under the standards applicable in proceedings of
the court, such an order is warranted, and that—
"(A) the administering authority or the Commission has
denied access to the information under subsection (b)(1),
"(B) the person on whose behalf the information is
requested is an interested party who is a party to the
investigation in connection with which the information was
obtained or developed, and
"(C) the party which submitted the information to which
the request relates has been notified, in advance of the
hearing, of the request made under this section and of its
right to appear and be heard.
19 u s e 1677g.

"SEC. 778. INTEREST ON CERTAIN OVERPAYMENTS AND UNDERPAYMENTS.

"(a) GENERAL RULE.—Interest shall be payable on overpayments
and underpayments of amounts deposited on merchandise entered, or
withdrawn from warehouse, for consumption on and after the date on
which notice of an affirmative determination by the Commission
under section 705(b) or 735(b) with respect to such merchandise is
published.

93 STAT. 189

PUBLIC LAW 96-39—JULY 26, 1979
"(b) RATE.—The rate at which such interest is payable shall be 8
percent per annum, or, if higher, the rate in effect under section 6621
of the Internal Revenue Code of 1954 on the date on which the rate or
amount of the duty is finally determined.".
SEC. 102. PENDING INVESTIGATIONS.
(a) PENDING INVESTIGATIONS OF BOUNTIES OR GRANTS.—If, on

the

19 u s e 1671
note.

effective date of the application of title VII of the Tariff Act of 1930 to Ante, p. 150.
imports from a country, there is an investigation in progress under
section 303 of that Act as to whether a bounty or grant is being paid
or bestowed on imports from such country, then:
(1) If the Secretary of the Treasury has not yet made a
preliminary determination under section 303 of that Act as to 19 USC 1303.
whether a bounty or grant is being paid or bestowed, he shall
terminate the investigation under section 303 and the matter
previously under investigation shall be subject to this title as if
the affirmative determination called for in section 702 of that Act Ante, p. 151.
were made with respect to that matter on the effective date of the
application of title VII of that Act to such country.
(2) If the Secretary has made a preliminary determination
under such section 303, but not a final determination, as to
whether a bounty or grant is being paid or bestowed, he shall
terminate the investigation under such section 303 and the
matter previously under investigation shall be subject to the
provisions of title VII of that Act as if the preliminary determination under section 303 were a preliminary determination under
section 703 of that title made on the effective date of the
application of that title to such country.
(b) PENDING INVESTIGATIONS OF LESS-THAN-FAIR-VALUE SALES.—If,

on the effective date of title VII of the Tariff Act of 1930, there is an
investigation in progress under the Antidumping Act, 1921, as to 19 USC 160 note,
whether imports from a country are being, or are likely to be, sold in
the United States or elsewhere at less than fair value, then:
(1) If the Secretary has not yet made a preliminary determination under the Antidumping Act, 1921, as to the question of lessthan-fair-value sales, he shall terminate the investigation and
the United States International Trade Commission shall terminate any investigation under section 201(c)(2) of the Antidumping Act, 1921, and the matter previously under investigation 19 USC 160.
shall be subject to the provisions of title VII of the Tariff Act of
1930 as if the affirmative determination called for in section 732
were made with respect to such matter on the effective date of
title VII of the Tariff Act of 1930.
(2) If the Secretary has made under the Antidumping Act,
1921, a preliminary determination, but not a final determination, that imports from such country are being or are likely to be
sold in the United States or elsewhere at less than fair value, the
investigation shall be terminated and the matter previously
under investigation shall be subject to the provisions of title VII
of the Tariff Act of 1930 as if the preliminary determination
under the Antidumping Act, 1921, were a preliminary determination under section 733 of that title made on the effective date
of title VII of the Tariff Act of 1930.
(c) PENDING INVESTIGATIONS OF INJURY.—If, on the effective date of
the application of title VII of the Tariff Act of 1930 to imports from a
country, the United States International Trade Commission is conducting an investigation under section 303 of the Tariff Act of 1930 or
section 201(a) of the Antidumping Act, 1921, as to whether an

93 STAT. 190

Ante, p. 150.
Infra.
Ante, p. 159.
___.^-^Ante, p. 169.

PUBLIC LAW 96-39—JULY 26, 1979
industry in the United States is being, or is likely to be injured, or is
prevented from being established, it shall terminate any such investigation and initiate an investigation, under subtitle A or B of title VII
oiF the Tariff Act of 1930, wWch shall be completed within 75 days,
and—
(1) treat any final determination of the Secretary of the
Treasury under section 303 as a final determination under
section 705(a) of the Tariff Act of 1930 and consider the net
amount of the bounty or grant estimated or determined under
section 303 as the net subsidy amount under subtitle A of that
title; and
(2) treat any final determination of the Secretary of the
Treasury under the Antidumping Act, 1921, as a final determjnation under section 735(a) of the Tariff Act of 1930.
SEC. 103. AMENDMENT OF SECTION 303 OF THE TARIFF ACT OF 1930.

(a) APPLICATION OF SECTION 303.—Paragraph (1) of section 303(a) of
the Tariff Act of 1930 (19 U.S.C. 1303(a)) is amended by striking out
"Whenever" and inserting in lieu thereof the following: "Except in
the case of an article or merchandise which is the product of a
country under the Agreement (within the meaning of section 701(b) of
this Act), whenever".
(b) CERTAIN PROVISIONS OF N E W LAW TO APPLY.—Section 303 of

Ante, pp. 152,
154,159.

such Act (19 U.S.C. 1303) is amended—
(1) by striking out paragraphs (3) through (6) of subsection (a),
(2) by striking out subsections (b) and (c) and inserting in lieu
thereof the following new subsection:
"(b) The duty imposed under subsection (a) shall be imposed, under
regulations prescribed by the administering authority (as defined in
section 771(1)), in accordance with title VII of this Act (relating to the
imposition of countervailing duties) except that, in the case of any
imported article or merchandise which is not free of duty—
"(1) no determination by the United States International
Trade C!ommission under section 703(a), 704, or 705(b) shall be
required,
"(2) an investigation may not be suspended under section
704(c),
"(3) no determination as to the presence of critical circumstances shall be made under section 703(e) or 705 (aX2) or
(bX4XA),and
"(4) any reference to determinations by the Commission, or to
the suspension of an investigation under section 704(c) which are
not permitted or required by this subsection shall be disregarded.", and
(3) by adding at the end thereof the following new subsection:
"(f) CROSS REFERENCE.—
"For provisions of law applicable in the case of articles and merchandise
which are the product of countries under the Agreement within the meaning
of section 701(b) of this Act, see title YII of this Act".
(c) CONFORMING AMENDMENT.—Paragraph 2 of section 303(a) of

such Act (19 U.S.C. 1303(a)) is amended—
(1) by striking out "is an affirmative determination" and
inserting in lieu thereof "are affirmative determinations", and
(2) by striking out "subsection (bXD" and inserting in lieu
thereof "title VII".
SEC. 104. TRANSITION RULES FOR COUNTERVAILING DUTY ORDERS.
19 use 1671
note.

(a) WAIVED COUNTERVAILING DUTY ORDERS.—

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 191

(1) NOTIFICATION OF COMMISSION.—The administering authori-

ty shall notify the United States International Trade Commission by January 7, 1980, of any countervailing duty order in
effect on January 1,1980—
(A){i) for which the Secretary of the Treasury has waived
the imposition of countervailing duties under section 303(d)
of the Tariff Act of 1930 (19 U.S.C. 1303(d)), and
(ii) which applies to merchandise other than quota cheese
(as defmed in section 701(c)(1) of this Act), which is a product Post, p. 268.
of a country under the Agreement,
(B) published on or after the date of the enactment of this
Act, and before January 1,1980, with respect to products of a
country under the Agreement (as defined in section 701(b) of Ante, p. 151.
theTariffActofl930),or
(C) applicable to frozen, boneless beef from the European
Communities under Treasury Decision 76-109,
and shall furnish to the Commission the most current information it has with respect to the net subsidy benefitting the
merchandise subject to the countervailing duty order.
(2) DETERMINATION BY THE COMMISSION.—Within 180 days after
the date on which it receives the information from the administering authority under paragraph (1), the Commission shall
make a determination of whether—
(A) an industry in the United States—
(i) is materially injured, or
(ii) is threatened with material injury, or
(B) the establishment of an industry in the United States is
materially retarded,
by reason of imports of the merchandise subject to the order.
(3) EFFECT OF DETERMINATION.—
(A) AFFIRMATIVE DETERMINATION.—Upon

being notified by
the Commission of an affirmative determination under paragraph (2), the administering authority shall terminate the
waiver of imposition of countervailing duties for merchandise subject to the order, if any. The countervailing duty
order under section 303 of the Tariff Act of 1930 which
applies to that merchandise shall remain in effect until
revoked, in whole or in part, under section 751(d) of such Act.
(B) NEGATIVE DETERMINATION.—Upon being notified by
the Commission of a negative determination under paragraph (2), the administering authority shall revoke the
countervailing duty order, and publish notice in the Federal
Register of the revocation.

(b) OTHER COUNTERVAIUNG DUTY ORDERS.—
(1) REVIEW BY COMMISSION UPON REQUEST.—In

the case of a
countervailing duty order issued under section 303 of the Tariff
Act of 1930 (19 U.S.C. 1303)—
(A) which is not a countervailing duty order to which
subsection (a) applies,
(B) which applies to merchandise which is the product of a
country under the Agreement, and
(C) which is in effect on January 1,1980, or which is issued
pursuant to court order in an action brought under section
516(d) of that Act before that date,
19 use 1516.
the Commission, upon the request of the government of such a
country or of exporters accounting for a significant proportion of
exports to the United States of merchandise which is covered by
the order, submitted within 3 years after the effective date of

93 STAT. 192

PUBLIC LAW 96-39—JULY 26, 1979

Ante, p. 150.

title VII of the Tariff Act of 1930 shall make a determination
under paragraph (2) of this subsection.
(2) DETERMINATION BY THE COMMISSION.—In a case described in
paragraph (1) with respect to which it has received a request for
review, the Commission shall commence an investigation to
determine whether—
(A) an industry in the United States—
(i) would be materially injured, or
(ii) would be threatened with material injury, or
(B) the establishment of an industry in the United States
would be materially retarded,
by reason of imports of the merchandise covered by the countervailing duty order if the order were to be revoked.

Notification.

Whenever the Commission receives a request under paragraph
(1), it shall promptly notify the administering authority and the
administering authority shall suspend liquidation of entries of
the affected merchandise made on or after the date of receipt of
the Commission's notification, or in the case of butter from
Australia, entries of merchandise subject to the assessment
of countervailing duties under Treasury Decision 42937, as
amended, and collect estimated countervailing duties pending
the determination of the Commission. The Commission shall
issue its determination in any investigation under this subsection not later than 3 years after the date of commencement of
such investigation.

(3) SUSPENSION OF LIQUIDATION; INVESTIGATION TIME UMITS.—

(4) EFFECT OF DETERMINATION.—
(A) AFFIRMATIVE DETERMINATION.—Upon

Publication in
Federal
Register.

being notified of
an affirmative determination under paragraph (2) by the
Commission, the administering authority shall liquidate
entries of merchandise the liquidation of which was suspended under paragraph (3) of this subsection and impose
countervailing duties in the amount of the estimated duties
required to be deposited. The countervailing duty order
shall remain in effect until revoked, in whole or in part,
under section 751(c) of the Tariff Act of 1930.
(B) NEGATIVE DETERMINATION.—Upon being notified of a
negative determination under paragraph (2) by the Commission, the administering authority shall revoke the countervailing duty order then in effect, publish notice thereof in
the Federal Register, and refund, without payment of interest, any estimated countervailing duties collected during the
period of suspension of liquidation.

(c) ALL OUTSTANDING COUNTERVAILING DUTY ORDERS.—Subject to
Ante, p. 190.

Publication in
Federal
Register.

the provisions of subsections (a) and (b), any countervailing duty
order issued under section 303 of the Tariff Act of 1930 which is—
(1) in effect on the effective date of title VII of the Tariff Act of
1930 (as added by section 101 of this Act), or
(2) issued pursuant to court order in a proceeding brought
before that date under section 516(d) of the Tariff Act of 1930,
shall remain in effect after that date and shall be subject to review
under section 751 of the Tariff Act of 1930.
(d) PUBLICATION OF NOTICE OF DETERMINATIONS.—Whenever the

Commission makes a determination under subsection (a) or Ob), it
shall publish notice of that determination in the Federal Register and
notify the administering authority of its determination.

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 193

(e) DEFINITIONS.—Whenever any term which is defined in section
771 of the Tariff Act of 1930 is used in this section, it has the same
meaning as when it is used in title VII of that Act.
Ante, p. 150.
SEC. 105. CONTINUATION OF CERTAIN WAIVERS.

(a) WAIVERS.—Subparagraph (B) of section 303(d)(4) of the Tariff
Act of 1930 (19 U.S.C. 1303(d)(4)) is amended to read as follows:
"(B) Any determination made by the Secretary under this subsection with respect to merchandise of a country which, if title VII of
the Tariff Act of 1930 were in effect, would, as determined by the
President, be a country under the Agreement (within the meaning of
section 701(b) of such Act), which is in effect on September 29, 1979, Ante, p. I5i.
or on the day before the date of the enactment of the Trade
Agreements Act of 1979 (whichever of such dates first occurs), shall
remain in effect until whichever of the following dates first occurs:
"(i) The date on which the United States International Trade
Commission makes a determination under section 104 of the
Trade Agreements Act of 1979.
"(ii) The date such determination is revoked under paragraph
(3).
"(iii) The date of adoption of a resolution of disapproval of
such determination under subsection (e)(2)."
(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall 19 USC 1303
take effect on the date of enactment of this Act.
n°t®SEC. 106. CONFORMING CHANGES.

(a) REPEAL OF OLD LAW.—The Antidumping Act, 1921 (19 U.S.C. 160
et seq.) is hereby repealed but findings in effect on the effective date
of this Act, or issued pursuant to court order in an action brought
before that date, shall remain in effect, subject to review under
section 751 of the Tariff Act of 1930.
(b) CONFORMING AMENDMENTS.—

(1) Section 337(b)(3) of the Tariff Act of 1930 (19 U.S.C.
1337(b)(3)) is amended by striking out "the Antidumping Act,
1921" and inserting in lieu thereof "subtitle B of title VII of the
TariffActofl930".
(2) Section 503 of the Automotive Products Trade Act of 1965
(19 U.S.C. 2033) is amended by striking out "the Anti-Dumping
Act, 1921 (19 U.S.C. 160-173)" and inserting in lieu thereof
"subtitle B of title VII of the Tariff Act of 1930,".
(3) Section 201(b)(6) of the Trade Act of 1974 (19 U.S.C.
2251(b)(6)) is amended by striking out "the Antidumping Act,
1921, section 303 or 337" and inserting in lieu thereof "subtitles
A and B of title VII or section 337".
SEC. 107. EFFECTIVE DATE.
Except as otherwise provided in this title, this title and the 19 USC 1671
amendments made by it shall take effect on January 1, 1980, if— "°*®(1) the Agreement on Interpretation and Application of Articles VI, XVI, and XXIII of the General Agreement on Tariffs and
Trade (relating to subsidies and countervailing measures), and
(2) the Agreement on Implementation of Article VI of the
General Agreement on Tariffs and Trade (relating to antidumping measures),
approved by the Congress under section 2(a) of this Act have entered
into force with respect to the United States as of that date.

59-194 O — 81

15 : QL3

93 STAT. 194

PUBLIC LAW 96-39—JULY 26, 1979
TITLE II—CUSTOMS VALUATION
Subtitle A—Valuation Standards Amendments
SEC. 201. VALUATION OF IMPORTED MERCHANDISE.

(a) VALUATION STANDARDS.—Section 402 of the Tariff Act of 1930
(19 U.S.C. 1401a) is amended to read as follows:
"SEC. 402. VALUE.

"(a) IN GENERAL.—(1) Except as otherwise specifically provided for
in this Act, imported merchandise shall be appraised, for the purposes of this Act, on the basis of the following:
"(A) The transaction value provided for under subsection Ot)).
"(B) The transaction value of identical merchandise provided
for under subsection (c), if the value referred to in subparagraph
(A) cannot be determined, or can be determined but cannot be
used by reason of subsection (b)(2).
"(C) The transaction value of similar merchandise provided for
under subsection (c), if the value referred to in subparagraph (B)
cannot be determined.
"(D) The deductive value provided for under subsection (d), if
the value referred to in subparagraph (C) cannot be determined
and if the importer does not request alternative valuation under
paragraph (2).
"(E) The computed value provided for under subsection (e), if
the value referred to in subparagraph (D) cannot be determined.
"(F) The value provided for under subsection (f), if the value
referred to in subparagraph (E) cannot be determined.
"(2) If the value referred to in paragraph (1)(C) cannot be determined with respect to imported merchandise, the merchandise shall
be appraised on the basis of the computed value provided for under
paragraph (1)(E), rather than the deductive value provided for under
paragraph (1)(D), if the importer makes a request to that effect to the
customs officer concerned within such time as the Secretary shall
prescribe. If the computed value of the merchandise cannot subsequently be determined, the merchandise may not be appraised on the
basis of the value referred to in paragraph (1)(F) unless the deductive
value of the merchandise cannot be determined under paragraph
(1)(D).
"(3) Upon written request therefor by the importer of merchandise,
and subject to provisions of law regarding the disclosure of information, the customs officer concerned shall provide the importer with a
written explanation of how the value of that merchandise was
determined under this section.
"(b) TRANSACTION VALUE OF IMPORTED MERCHANDISE.—(1)

The

transaction value of imported merchandise is the price actually paid
or payable for the merchandise when sold for exportation to the
United States, plus amounts equal to—
"(A) the packing costs incurred by the buyer with respect to the
imported merchandise;
"(B) any selling commission incurred by the buyer with respect
to the imported merchandise;
"(C) the value, apportioned as appropriate, of any assist;
"(D) any royalty or license fee related to the imported merchandise that the buyer is required to pay, directly or indirectly,
as a condition of the sale of the imported merchandise for
exportation to the United States; and

PUBLIC LAW 96-39—JULY 26, 1979
"(E) the proceeds of any subsequent resale, disposal, or use of
the imported merchandise that accrue, directly or indirectly, to
the seller.
The price actually paid or payable for imported merchandise shall be
increased by the amounts attributable to the items (and no others)
described in subparagraphs (A) through (E) only to the extent that
each such amount (i) is not otherwise included within the price
actually paid or payable; and (ii) is based on sufficient information. If
sufficient information is not available, for any reason, with respect to
any amount referred to in the preceding sentence, the transaction
value of the imported merchandise concerned shall be treated, for
purposes of this section, as one that cannot be determined.
"(2)(A) The transaction value of imported merchandise determined
under paragraph (1) shall be the appraised value of that merchandise
for the purposes of this Act only if—
"(i) there are no restrictions on the disposition or use of the
imported merchandise by the buyer other than restrictions
that—
"(I) are imposed or required by law,
"(II) limit the geographical area in which the merchandise
may be resold, or
"(III) do not substantially affect the value of the merchandise;
"(ii) the sale of, or the price actually paid or payable for, the
imported merchandise is not subject to any condition or consideration for which a value cannot be determined with respect to the
imported merchandise;
"(iii) no part of the proceeds of any subsequent resale, disposal,
or use of the imported merchandise by the buyer will accrue
directly or indirectly to the seller, unless an appropriate adjustment therefor can be made under paragraph (1)(E); and
"(iv) the buyer and seller are not related, or the buyer and
seller are related but the transaction value is acceptable, for
purposes of this subsection, under subparagraph (B).
"(B) The transaction value between a related buyer and seller is
acceptable for the purposes of this subsection if an examination of the
circumstances of the sale of the imported merchandise indicates that
the relationship between such buyer and seller did not influence the
price actually paid or payable; or if the transaction value of the
imported merchandise closely approximates—
"(i) the transaction value of identical merchandise, or of
similar merchandise, in sales to unrelated buyers in the United
States;
"(ii) the deductive value or computed value for identical
merchandise or similar merchandise; or
"(iii) the transaction value determined under this subsection in
sales to unrelated buyers of merchandise, for exportation to the
United States, that is identical in all respects to the imported
merchandise but was not produced in the country in which the
imported merchandise was produced;
but only if each value referred to in clause (i), (ii) or (iii) that is used
for comparison relates to merchandise that was exported to the
United States at or about the same time as the imported merchandise. No two sales to unrelated buyers may be used for comparison for
purposes of clause (iii) unless the sellers are unrelated.
"(C) In applying the values used for comparison purposes under
subparagraph (B), there shall be taken into account differences with
respect to the sales involved (if such differences are based on

93 STAT. 195

'

_ ::
/

'

93 STAT. 196

PUBLIC LAW 96-39—JULY 26, 1979

sufficient information whether supplied by the buyer or otherwise
available to the customs officer concerned) in—
"(i) commercial levels;
"(ii) quantity levels;
"(iii) the costs, commissions, values, fees, and proceeds described in paragraph (1); and
"(iv) the costs incurred by the seller in sales in which he and
the buyer are not related tnat are not incurred by the seller in
sales in which he and the buyer are related.
"(3) The transaction value of imported merchandise does not
include any of the following, if identified separately from the price
actually paid or payable and from any cost or other item referred to
in paragraph (1):
"(A) Any reasonable cost or charge that is incurred for—
"(i) the construction, erection, assembly, or maintenance
of, or the technical assistance provided with respect to, the
merchandise after its importation into the United States; or
"(ii) the transportation of the merchandise after such
importation.
"(B) The customs duties and other Federal taxes currently
payable on the imported merchandise by reason of its importation, and any Federal excise tax on, or measured by the value of,
such merchandise for which vendors in the United States are
ordinarily liable.
"(4) For purposes of this subsection—
"Price actually
"(A) The term 'price actually paid or payable' means the total
paid or payable."
pa3mient (whether direct or indirect, and exclusive of any costs,
charges, or expenses incurred for transportation, insurance, and
related services incident to the international shipment of the
merchandise from the country of exportation to the place of
importation in the United States) made, or to be made, for
imported merchandise by the buyer to, or for the benefit of, the
seller.
"(B) Any rebate of, or other decrease in, the price actually paid
or payable that is made or otherwise effected between the buyer
and seller after the date of the importation of the merchandise
into the United States shall be disregarded in determining the
transaction value under paragraph (1).
"(c) TRANSACTION VALUE OF IDENTICAL MERCHANDISE AND SIMILAR

MERCHANDISE.—(1) The transaction value of identical merchandise,
or of similar merchandise, is the transaction value (acceptable as the
appraised value for purposes of this Act under subsection (b) but
adjusted under paragraph (2) of this subsection) of imported merchandise that is—
"(A) with respect to the merchandise being appraised, either
identical merchandise or similar merchandise, as the case may
be; and
"(B) exported to the United States at or about the time that the
merchandise being appraised is exported to the United States.
"(2) Transaction values determined under this subsection shall be
based on sales of identical merchandise or similar merchandise, as
the case may be, at the same commercial level and in substantially
the same quantity as the sales of the merchandise being appraised. If
no such sale is found, sales of identical merchandise or similar
merchandise at either a different commercial level or in different
quantities, or both, shall be used, but adjusted to take account of any
such difference. Anj[ adjustment made under this paragraph shall be
based on sufficient information. If in applying this paragraph with

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 197

respect to any imported merchandise, two or more transaction values
for identical merchandise, or for similar merchandise, are determined, such imported merchandise shall be appraised on the basis of
the lower or lowest of such values.
"(d) DEDUCTIVE VALUE.—(1) For purposes of this subsection, the "Merchandise
term 'merchandise concerned' means the merchandise being ap- concerned."
praised, identical merchandise, or similar merchandise.
"(2)(A) The deductive value of the merchandise being appraised is
whichever of the following prices (as adjusted under paragraph (3)) is
appropriate depending upon when and in what condition the merchandise concerned is sold in the United States:
"(i) If the merchandise concerned is sold in the condition as
imported at or about the date of importation of the merchandise
being appraised, the price is the unit price at which the merchandise concerned is sold in the greatest aggregate quantity at or
about such date.
"(ii) If the merchandise concerned is sold in the condition as
imported but not sold at or about the date of importation of the
merchandise being appraised, the price is the unit price at which
the merchandise concerned is sold in the greatest aggregate
quantity after the date of importation of the merchandise being
appraised but before the close of the 90th day after the date of
such importation.
"(iii) If the merchandise concerned was not sold in the condition as imported and not sold before the close of the 90th day
after the date of importation of the merchandise being appraised,
the price is the unit price at which the merchandise being
appraised, after further processing, is sold in the greatest aggregate quantity before the 180th day after the date of such
importation. This clause shall apply to appraisement of merchandise only if the importer so elects and notifies the customs
officer concerned of that election within such time as shall be
prescribed by the Secretary.
"(B) For purposes of subparagraph (A), the unit price at which Unit price,
merchandise is sold in the greatest aggregate quantity is the unit
price at which such merchandise is sold to unrelated persons, at the
first commercial level after importation (in cases to which subparagraph .(A) (i) or (ii) applies) or after further processing (in cases to
which subparagraph (A)(iii) applies) at which such sales take place, in
a total volume that is (i) greater than the total volume sold at any
other unit price, and (ii) sufficient to establish the unit price.
"(3)(A) The price determined under paragraph (2) shall be reduced
by an amount equal to—
"(i) any commission usually paid or agreed to be paid, or the
addition usually made for profit and general expenses, in connection with sales in the United States of imported merchandise
that is of the same class or kind, regardless of the country of
exportation, as the merchandise concerned;
"(ii) the actual costs and associated costs of transportation and
insurance incurred with respect to international shipments of
the merchandise concerned from the country of exportation to
the United States;
"(iii) the usual costs and associated costs of transportation and
insurance incurred with respect to shipments of such merchandise from the place of importation to the place of delivery in the
United States, if such costs are not included as a general expense
under clause (i);

93 STAT. 198

PUBLIC LAW 96-39—JULY 26, 1979
"(iv) the customs duties and other Federal taxes currently
payable on the merchandise concerned by reason of its importation, and any Federal excise tax on, or measured by the value of,
such merchandise for which vendors in the United States are
ordinarily liable; and
"(v) (but only in the case of a price determined under paragraph (2XA)(iii)) the value added by the processing of the merchandise after importation to the extent that the value is based
on sufficient information relating to cost of such processing.
"(B) For purposes of applying paragraph (A)—
"(i) the deduction made for profits and general expenses shall
be based upon the importer's profits and general expenses, unless
such profits and general expenses are inconsistent with those
reflected in sales in the United States of imported merchandise
of the same class or kind, in which case the deduction shall be
based on the usual profit and general expenses reflected in such
sales, as determined from sufficient information; and
"(ii) any State or local tax imposed on the importer with
respect to the sale of imported merchandise shall be treated as a
general expense.
"(C) The price determined under paragraph (2) shall be increased
(but only to the extent that such costs are not otherwise included) by
an amount equal to the packing costs incurred by the importer or the
buyer, as the case may be, with respect to the merchandise concerned.
"(D) For purposes of determining the deductive value of imported
merchandise, any sale to a person who supplies any assist for use in
connection with the production or sale for export of the merchandise
concerned shall be disregarded.
"(e) COMPUTED VALUE.—(1) The computed value of imported merchandise is the sum of—
"(A) the cost or value of the materials and the fabrication and
other processing of any kind employed in the production of the
imported merchandise;
"(B) an amount for profit and general expenses equal to that
usually reflected in sales of merchandise of the same class or
kind as the imported merchandise that are made by the producers in the country of exportation for export to the United
States;
"(C) any assist, if its value is not included under subparagraph
(A) or (B); and
"(D) the packing costs.
"(2) For purposes of paragraph (1)—
"(A) the cost or value of materials under paragraph (1)(A) shall
not include the amount of any internal tax imposed by the
country of exportation that is directly applicable to the materials
or their disposition if the tax is remitted or refunded upon the
exportation of the merchandise in the production of which the
materials were used; and
"(B) the amount for profit and general expenses under paragraph (1)(B) shall be based upon the producer's profits and
expenses, unless the producer's profits and expenses are inconsistent with those usually reflected in sales of merchandise of the
same class or kind as the imported merchandise that are made by
producers in the country of exportation for export to the United
States, in which case the amount under paragraph (1)(B) shall be
based on the usual profit and general expenses of such producers
in such sales, as determined from sufficient information.
"(f) VALUE IF OTHER VALUES CANNOT BE DETERMINED OR USED.—(1)

If the value of imported merchandise cannot be determined, or

PUBLIC LAW 96-39—JULY 26, 1979
otherwise used for the purposes of this Act, under subsections (b)
through (e), the merchandise shall be appraised for the purposes of
this Act on the basis of a value that is derived from the methods set
forth in such subsections, with such methods being reasonably
adjusted to the extent necessary to arrive at a value.
"(2) Imported merchandise may not be appraised, for the purposes
of this Act, on the basis of—
"(A) the selling price in the United States of merchandise
produced in the United States;
"(B) a system that provides for the appraisement of imported
merchandise at the higher of two alternative values;
"(C) the price of merchandise in the domestic market of the
country of exportation;
"(D) a cost of production, other than a value determined under
subsection (e) for merchandise that is identical merchandise or
similar merchandise to the merchandise being appraised;
"(E) the price of merchandise for export to a country other
than the United States;
"(F) minimum values for appraisement; or
"(G) arbitrary or fictitious values.
This paragraph shall not apply with respect to the ascertainment,
determination, or estimation of foreign market value or United
States price under title VII.
"(g) SPECIAL RULES.—(1) For purposes of this section, the persons
specified in any of the following subparagraphs shall be treated as
persons who are related:
"(A) Members of the same family, including brothers and
sisters (whether by whole or half blood), spouse, ancestors, and
lineal descendants.
"(B) Any officer or director of an organization and such
organization.
"(C) An officer or director of an organization and an officer or
director of another organization, if each such individual is also
an officer or director in the other organization.
"(D) Partners.
"(E) Employer and employee.
"(F) Any person directly or indirectly owning, controlling, or
holding with power to vote, 5 percent or more of the outstanding
voting stock or shares of any organization and such organization.
"(G) Two or more persons directly or indirectly controlling,
controlled by, or under common control with, any person.
"(2) For purposes of this section, merchandise (including, but not
limited to, identical merchandise and similar merchandise) shall be
treated as being of the same class or kind as other merchandise if it is
within a group or range of merchandise produced by a particular
industry or industry sector.
"(3) For purposes of this section, information that is submitted by
an importer, buyer, or producer in regard to the appraisement of
merchandise may not be rejected by the customs officer concerned on
the basis of the accounting method by which that information was
prepared, if the preparation was in accordance with generally
accepted accounting principles. The term 'generally accepted
accounting principles' refers to any generally recognized consensus
or substantial authoritative support regarding—
"(A) which economic resources and obligations should be
recorded as assets and liabilities;
"(B) which changes in assets and liabilities should be recorded;

93 STAT. 199

Imported
merchandise,
appraisal.

Ante, p. 150.

Generally
accepted
accounting
principles.

93 STAT. 200

PUBLIC LAW 96-39-JULY 26, 1979
"(C) how the assets and liabilities and changes in them should
be measured;
"(D) what information should be disclosed and how it should be
disclosed; and
"(E) which financial statements should be prepared.
The applicability of a particular set of generally accepted accounting
principles will depend upon the basis on which the value of the
merchandise is sought to be established.
"(h) DEFINITIONS.—As used in this section—
"(1)(A) The term 'assist' means any of the following if supplied
directly or indirectly, and free of charge or at reduced cost, by the
buyer of imported merchandise for use in connection with the
production or the sale for export to the United States of the
merchandise:
"(i) Materials, components, parts, and similar items incorporated in the imported merchandise.
"(ii) Tools, dies, molds, and similar items used in the
production of the imported merchandise.
"(iii) Merchandise consumed in the production of the
imported merchandise.
"(iv) Engineering, development, artwork, design work, and
plans and sketches that are undertaken elsewhere than in
the United States and are necessary for the production of the
imported merchandise.
"(B) No service or work to which subparagraph (A)(iv) applies
shall be treated as an assist for purposes of this section if such
service or work—
"(i) is performed by an individual who is domiciled within
the United States;
"(ii) is performed by that individual while he is acting as
an employee or agent of the buyer of the imported merchandise; and
"(iii) is incidental to other engineering, development,
artwork, design work, or plans or sketches that are undertaken within the United States.
"(C) For purposes of this section, the following apply in
determining the value of assists described in subparagraph
(A)(iv):
"(i) The value of an assist that is available in the public
domain is the cost of obtaining copies of the assist.
"(ii) If the production of an assist occurred in the United
States and one or more foreign countries, the value of the
assist is the value thereof that is added outside the United
States.
"(2) The term 'identical merchandise' means—
"(A) merchandise that is identical in all respects to, and
was produced in the same country and by the same person
as, the merchandise being appraised; or
"(B) if merchandise meeting the requirements under subparagraph (A) cannot be found (or for purposes of applying
subsection (b)(2)(B) (i), regardless of whether merchandise
meeting such requirements can be found), merchandise that
is identical in all respects to, and was produced in the same
country as, but not produced by the same person as, the
merchandise being appraised.
Such term does not include merchandise that incorporates or
reflects any engineering, development, artwork, design work, or
plan or sketch that—

PUBLIC LAW 96-39-JULY 26, 1979

93 STAT. 201

"(I) was supplied free or at reduced cost by the buyer of the
merchandise for use in connection with the production or
the sale for export to the United States of the merchandise;
and
"(ID is not an assist because undertaken within the United
States.
"(3) The term 'packing costs' means the cost of all containers
and coverings of whatever nature and of packing, whether for
labor or materials, used in placing merchandise in condition,
packed ready for shipment to the United States.
' '(4) The term 'similar merchandise' means—
"(A) merchandise that—
"(i) was produced in the same country and by the same
person as the merchandise being appraised,
"(ii) is like the merchandise being appraised in characteristics and component material, and
"(iii) is commercially interchangeable with the merchandise being appraised; or
"(B) if merchandise meeting the requirements under subparagraph (A) cannot be found (or for purposes of applying
subsection (b)(2)(B)(i), regardless of whether merchandise
meeting such requirements can be found), merchandise
that—
"(i) was produced in the same country as, but not
produced by the same person as, the merchandise being
appraised, and
"(ii) meets the requirement set forth in subparagraph
(A)(ii)and(iii).
Such term does not include merchandise that incorporates or
reflects any engineering, development, artwork, design work, or
plan or sketch that—
"(I) was supplied free or at reduced cost by the buyer of the
merchandise for use in connection with the production or
the sale for export to the United States of the merchandise;
and
"(II) is not an assist because undertaken within the United
States.
"(5) The term 'sufficient information*, when required under
this section for determining—
"(A) any amount—
"(i) added under subsection (b)(1) to the price actually
paid or payable,
"(ii) deducted under subsection (d)(3) as profit or
general expense or value from further processing, or
"(iii) added under subsection (e)(2) as profit or general
expense;
"(B) any difference taken into account for purposes of
subsection (b)(2)(C); or
"(C) any adjustment made under subsection (c)(2);
means information that establishes the accuracy of such amount,
difference, or adjustment.",
(b) REPEAL OF EXISTING ALTERNATIVE VALUATION STANDARDS.—

Section 402a of the Tariff Act of 1930 (19 U.S.C. 1402) is repealed.
SEC. 202. CONFORMING AMENDMENTS.

(a) TARIFF ACT OF 1930.—The Tariff Act of 1930 (19 U.S.C. 1202 et
seq.) is amended as follows:
(1) Paragraph (2) of section 332(e) is amended to read as follows: 19 use 1332.

93 STAT. 202

Ante, p. 194.
19 use 1336.

19 use 1351.
19 use 1500.

PUBLIC LAW 96-39—JULY 26, 1979
"(2) The term 'import cost' means the transaction value of the
imported merchandise determined in accordance with section
402(b) plus, when not included in the transaction value, all
necessary expenses, exclusive of customs duties, of bringing such
merchandise to the United States.".
(2) Section 336 is amended—
(A) by striking out subsection (b);
(B) by striking out "and in basis of value" in subsection (c);
(C) by striking out "or in basis of value" in each of
subsections (d), (f), and (k); and
(D) by striking out subsection (j).
(3) Paragraph (2)(D)(ii) of section 350(a) is amended by striking
out "or 402a".
(4) Paragraph (a) of section 500 is amended to read as follows:
"(a) appraise merchandise by ascertaining or estimating the
value thereof, under section 402, by all reasonable ways and
means in his power, any statement of cost or costs of production
in any invoice, affidavit, declaration, other document to the
contrary notwithstanding;".
(b) TARIFF SCHEDULES OF THE UNITED STATES.—The Tariff Schedules of the United States (19 U.S.C. 1202) are further amended as
follows:
(1) General headnote 60t))(i) is amended by striking out "or
section 402a".
(2) Each of the following headnotes is amended by striking out
"or 402a" wherever it appears therein:
(A) Headnote 4 to subpart E of part 3 of schedule 6.
(B) Headnote 1 to subpart B of part 11 of schedule 7.
(C) Headnote 2 to part 1 of schedule 8.
(D) Headnotes 2(a), 2(c), and 3(a) to subpart B of part 1 of
schedule 8.
(c) OTHER LAWS.—

26 use 993.

19 use 1401a
"°*®-

Ante, p. 147.

19 use 1401a
note.

(1) TRADE ACT OF 1974.—Section 601(4) of the Trade Act of 1974
(19 U.S.C. 2481(4)) is amended by striking out "(19 U.S.C. sec.
1401a or 1402)" and inserting in lieu thereof "(as in effect before
the effective date of the amendments made by title II of the
Trade Agreements Act of 1979) or in section 402 of such Act of
1930 (as in effect on the effective date of such title II amendments) whichever is".
(2) INTERNAL REVENUE CODE OF 1954.—Paragraph (1) of section
993(c) of the Internal Revenue Code of 1954 is amended by
striking out "402a of the Tariff Act of 1930 (19 U.S.C. sec. 1401a or
1402)" and inserting in lieu thereof "of the Tariff Act of 1930 (19
U.S.C. 1401a)".
SEC. 203. PRESIDENTIAL REPORT ON OPERATION OF THE AGREEMENT.
As soon as practicable after the close of the 2-year period beginning
on the date on which the amendments made by this title (other than
section 223(b), relating to certain rubber footwear) take effect, the
President shall prepare and submit to Congress a report containing
an evaluation of the operation of the Agreement on Implementation
of Article VII of the General Agreement on Tariffs and Trade
approved under section 2(a) (hereinafter in this subtitle referred to as
the "Agreement"), both domestically and internationally, during
that period.
SEC. 204. TRANSITION TO VALUATION STANDARDS UNDER THIS TITLE.
(a) EFFECTIVE DATE OF AMENDMENTS.—

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 203

(1) I N GENERAL.—Except as provided in paragraph (2), the
amendments made by this title (except the amendments made by
section 223(b)) shall take effect on—
(A) January 1, 1981, if the Agreement enters into force
with respect to the United States by that date; or
(B) if subparagraph (A) does not apply, that date after
January 1, 1981, on which the Agreement enters into such
force;
and shall apply with respect to merchandise that is exported to
the United States on or after whichever of such dates applies.
(2) EARLIER EFFECTIVE DATE UNDER CERTAIN CIRCUMSTANCES.—

}iiXJ"'

If the President determines before January 1, 1981, that—
(A) the European Economic Community has accepted the
obligations of the Agreement with respect to the United
States; and
(B) each of the member states of the European Economic
Community has implemented the Agreement under its laws;
the President shall by proclamation announce such determination and the amendments made by this title (except the amendments made by section 223(b)) shall take effect on the date
specified in the proclamation (but not before July 1, 1980) and
shall apply with respect to merchandise that is exported to the
United States on or after such date; except that unless the
Agreement enters into force with respect to the United States by
January 1,1981, all provisions of law that were amended by such
amendments are revived (as in effect on the day before such
amendments took effect) on January 1, 1981, and such provisions—
(i) shall remain in effect until the date on which the
Agreement enters into force with respect to the United
4
States (and on such date the amendments made by this title
(except the amendments made by section 223(b)) are revived
and shall apply with respect to merchandise exported to the
United States on or after such date); and
(ii) shall apply with respect to merchandise exported to the
United States on or after January 1, 1981, and before the
date on which the Agreement enters into such force.
(b) APPLICATION OF OLD LAW VALUATION STANDARDS.—For purposes of the administration of the customs laws, all merchandise
(other than merchandise to which subsections (a) and (c) apply) shall
be appraised on the same basis, and in the same manner, as if the
amendments made by this title had not been enacted.
(c) SPECIAL TREATMENT FOR CERTAIN RUBBER FOOTWEAR.—The

amendments made by section 223(b) shall take effect July 1,1981, or,
if later, the date on which the Agreement enters into force with
respect to the United States, and shall apply, together with the other
amendments made by this title, to rubber footwear exported to the
United States on or after such date. For purposes of the administration of the customs laws, all rubber footwear (other than rubber
footwear to which the preceding sentence applies) shall be appraised
on the same basis, and in the same manner, as if the amendments
made by this title had not been enacted.
(d) DEFINITION.—For purposes of this section, the term "rubber
footwear" means articles described in item 700.60 of the Tariff
Schedules of the United States (as in effect on the day before the day 19 u s e 1202.
on which the amendments made by section 223(b) take effect).

93 STAT. 204

PUBLIC LAW 96-39-JULY 26, 1979
Subtitle B—Final List and American Selling Price Rate
Conversions
SEC. 221. AMENDMENT OF TARIFF SCHEDULES.

Whenever in this subtitle an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a schedule or other provision,
the reference shall be considered to be made to a schedule or other
provision of the Tariff Schedules of the United States (19 U.S.C. 1202).
SEC. 222. FINAL LIST RATE CONVERSIONS.
19 u s e 1202.

(a) BALL AND ROLLER BEARINGS.—Schedule 6, part 4, subpart J is
amended—
(1) by striking out items 680.35 and 680.36 and inserting in lieu
thereof the following:
680.37
680.38
680.39
680.41

Other:
Ball bearings and parts thereof..
If Cana^lian article and original motor-vehicle
equipment (see headnote 2, part 6B, schedule 6)
Other.
If Canadian article and original motor-vehicle
equipment (see headnote 2, part 6B, schedule 6)

ll%adval.

Free
13% ad val.

67%
ad val.

67%
ad val.

Free

and
(2) by redesignating item 680.40 as item 680.42.
(b) PNEUMATIC TIRES.—Schedule 7, part 12, subpart C is amended
by striking out "4% ad val." in rate column numbered 1 of item
772.51 and inserting in lieu thereof "5.7% ad val.".
SEC. 223. AMERICAN SELLING PRICE RATE CONVERSIONS.
19 u s e 1202.

(a) CLAMS.—Schedule 1, part 3, subpart E is amended—
(1) by striking out the headnote; and
(2) by striking out item 114.05 and inserting in lieu thereof the
following new items:
114.04

114.06

Other:
Boiled clams, whether whole, minced, or chopped, and
whether or not salted, but not otherwise prepared or
preserved, in inunediate containers the contents of
which do not exceed 24 ounces gross weight...
Other.

22.2% ad
val.
14% ad val.

110%
ad val.
35% ad val.

db) FOOTWEAR.—Schedule 7, part 1, subpart A is amended—
(1) by striking out headnote 30^) and redesignating headnote
3(a) as headnote 3;
(2) by striking out item 700.60 and inserting in lieu thereof the
following new items:
700.57

700.59

Other:
Hunting boots, galoshes, rainwear, and other footwear
designed to be worn over, or in lieu of, other footwear as a protection against water, oil, grease, or
chemicals or cold or inclement weather.

37.5% ad
val.

Footwear with open toes or open heels; footwear of the
sUp-on type, that is held to the foot without the use
of laces or buckles or other fasteners, the foregoing
except footwear provided for in item 700.57 and
except footwear having a foxing or foxing-like band
wholly or almost wholly of rubber or plastics applied
or molded at the sole and overlapping the upper.
37.5% ad
val.

66% ad val.

66% ad val.

93 STAT. 205

PUBLIC LAW 96-39—JULY 26, 1979
Other:

700.61

Footwear having soles (or midsoles, if any) of
rubber or plastics which are affixed to the upper
exclusively with an adhesive (any midsoles also
being affixed exclusively to one another uid to
the outsole with an adhesive); the foregoing
except footwear having a foxing or foxing-like
band applied to or molded at the sole and overlapping the upper and except footwear with
soles which overlap the upper other than at the
toe or heel:
Valued not over $6.50 per pair

700.62

700.63

37.5% ad
val.

66% ad val.

Valued over $6.50 but not over $12 per pair.

90( per pair
+ 20%
ad val.

$1.58 per
pair
+ 35%
ad val.

Valued over $12 per pair

20% ad val.

35% ad val.

48% ad val.

84% ad val.

90t per pair
+37.5%
ad val.

$1.58 per
pair
+66%
ad val.

Other:
700.64

Valued not over $3.00 per pair

700.67

Valued over $3.00 but not over $6.50 per
pair

700.69

Valued over $6.50 but not over $12 per pair.

90< per pair
+ 20%
ad val.

$1.58 per
pair
+ 35%
ad val.

700.71

Valued over $12 per pair..

20% ad val.

35% ad val.

and
(3) by redesignating items 700.58, 700.66, 700.68, and 700.70 as
items 700.56,700.72,700.73, and 700.74, respectively.
(c) WOOL KNIT GLOVES.—Schedule 7, part 1, subpart C is amended—
(1) by striking out headnote 4; and
(2) by striking out "(see headnote 4 of this subpart)" in item
704.55.
(d) CHEMICALS.—Schedule 4, part 1, is amended—
(1) by striking out headnotes 4 and 5, and
(2) by striking out subparts B and C and inserting in lieu
thereof the following:
Subpart B.—Industrial Organic Chemicals
Subpart B headnotes:
1. The provisions of items 402.00 to 406.61, inclusive, in
this subpart shall apply not only to the products described
therein when obtained, derived, or manufactured in whole or
in part from products described in subpart A of this part, but
shaD also apply to products of like chemical composition
having a benzenoid, quinoid, or modified benzenoid structure
artificially produced by synthesis, whether or not obtained,
derived, or manufactured in whole or in part from products
described in said subpart A.
2. For the purpose of classification of merchandise provided for under items 402.36 to 406.61, inclusive, the following provisions shall govern:
(a) The term "derivatives" refers to only those derivatives
which may be obtained by one or more of the following
processes: Halogenation, nitration, nitrosation, or sulfonation, and is to be understood to include sulfonyl halides.
(b) A compound with functional groups described in two
or more items under items 402.36 to 406.61, inclusive, is to
be chusified in the latest applicable item. For example, 4-

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 206

acetamido-2-aminophenol, which contains three functional
groups, will be classified in 405.12 (Amides), rather than in
404.92 to 405.08, inclusive (Aminophenols), or in 404.84
and 404.88 (Amines), or in 403.51 (Phenols). When applicable, classincation should be made in accordance with the
following principles:
(i) Salts of organic acids (including phenols) with inorganic
bases and salts of organic bases with inorganic acids are
to be classified under the same superior heading as the
organic acid or base; salts of organic acids with organic
bases are to be classified either under the superior head'
ing which describes the functional groups present in the
free acid or under the one which describes the functional
groups present in the free base, whichever is listed lat«r.
(ii) Esters of organic acids are to be classiHed either under
the superior heading which describes the functional groups
present in the free acid or under the one which describes
the functional groups present in the free alcohol or
phenol, whichever is listed later
(iii) The above provisions apply also in cases where the
component having the functional groups described under
the later superior heading is not of benzenoid origin. For
example, benzyl acetate is classified under carboxylic
acids (404.24 to 404.46, inclusive) rather than under
alcohols (403.45)

m

402.00

Cyclic organic chemical products in any physical form
having a benzenoid, quinoid, or modified benzenoid structure, not provided for in subpart A or C of this part:
Anthracene having a purity of 30% or more by weight,

402.04

Carbazole having a purity of 65% or more by weight...

402.08

Naphthalene which after the removal of all water present has a solidifying point of 79° C. or above

402.12

Phthalic anhydride.,

402.16

Styrene.

402.20

402.24

All distillates of coal tar, blast-furnace tar, oil-gas tar,
and water-gas tar, which on being subjected to
distillation yield in the portion distilling below 190° C.
a quantity of tar acids equal to or more than 5 % by
weight of the original distillate or which on being
subjected to distillation jield in the portion distilling
below 215° C. a quantity of tar acids equal to or more
than 75% by weight of the original distillate:
Phenol (carbolic acid) which on being subjected to
distillation yields in the portion distilling below
190° C. a quantity of tar acids equal to or more
than 5% by weight of the original distillate

Cresylic acid which on being subjected to distillation
yields in the portion distilling below 215° C. a
quantity of tar acids equal to or more than 75% by

1.4«perlb.
-1-9.3%
ad val.
1.7« per lb.
-t-12.5%
adval.

7(perlb.
-f-46.5%
ad val.
7* per lb.
-1-40%
ad val.

0.7* per lb.
-1-4%
ad val.
1.2«perlb.
-1-8.6%
ad val.
1.4$ per lb.
-1-9%
ad val.

7« per lb.
-f-40%
ad val.
7« per lb.
-1-49%
ad val.
7« per lb.
-1-45%
ad val.

1.5^ per lb.
-H2.5%
adval.

3.5t per lb.
-»-29.5%
adval.

PUBLIC LAW 96-39—JULY 26, 1979
weight of the original distillate.

0.85«perlb.

+5%
ad val.

402.28

Metacresol, orthocresol, paracresol, and
metaparacresol, all the foregoing having a purity
of 75% or more by weight

402.36

Other.

Other
Hydrocarbons:
Alkylbenzenes and polyalkylbenzenes.,

3.5* per lb.
+20%
sd val.

ad val.

7* per lb.
+42.5%
ad val.

1.7« per lb.
+8.4%
ad vaL

7* per lb.
+33.5%
advaL

1.7« per lb.
+ 17.3%
ad val.

7* per lb.
+55%
ad val.

0.8« per lb.

+5.3%
402.32

93 STAT. 207

402.40

Bi-andpolyphenyls..

1.7« per lb.
+ 12.5%
ad val.

7* per lb.
+40%
ad val.

402.44

a-Methylstyrene.

1.7<! per lb.
+ 12.5%
ad val.

7* per lb.
+40%
ad val.

402.48

Vlnyltoluene

1.7t per lb.
+ 12.5%
ad val.

7* per lb.
+40%
ad val.

402.52

Other..

1.7* per lb.
+21.4%
ad val.

7* per lb.
+68.5%
ad val.

1.7« per lb.
+ 12.5%
ad val.

7* per lb.
+40%
ad val.

1.7* per lb.
+ 15.2%
ad val.

7* per lb.
+48%
ad vaL

1.7* per lb.
+28.6%
ad val.

7* per lb.
91.5%
ad val.

402.56

Halogenated hydrocarbons:
Benzyl chloride (a-Chlorotoiuene)..

402.60

Benzottichloride {afiL,a, - Trichloro - toluene)

402.64

Chlorobenzenes, mono-, di-, and tri-:
Monochlorobenzene

402.68

Orthodichlorobenzene.

1.7« per lb.
+26.3%
ad val.

7* per lb.
+84%
ad val.

402.72

Other.

1.7* per lb.
+ 12.6%
ad val.

7* per lb
+40.5%
ad val.

402.76

Chlorinated biphenyl.

1.7* per lb.
+ 12.1%
ad val.

7* per lb.
+39%
ad val.

402.80

Other..

1.7* per lb.
+22.3%
ad val.

7* per lb.
+71%
ad val.

1.7* per lb.
+ 18.4%
ad val.

7* per lb.
+59%
ad val

1.7* per lb.
+ 15.6%
ad val.

7* per lb.
+50%
ad vaL

1.4* per lb.
+ 10%
ad val.

7* per lb.
+40%
ad val.

402.84

Hydrocarbon derivatives:
Monochloromononitrobenzenes.

402.88

4,4' - Dinitrostilbene - 2,2' - disulfonic acid.,

402.96

Nitrated benzene, toluene, or naphthalene:
p - Nitrotoluene

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 208
402.98

Other.

403.00

Nitrotoluenesulfonic acids.

403.05

p - Toluenesulfonyl chloride.

403.09

403.12

403.16

Other:
m - Benzenedisulfonic acid, sodium salt;
1 - Bromo - 2 - nitrobenzene;
1 - Chloro - 3,4 - dinitrobenzene;
1,2 - Dichloro - 4 - nitrobenzene;
0 - Fluoronitrobenzene;
1,5 - Naphthalenedisulfonic acid;
p - Nitro - 0 - xylene; and
o - (and p) - Toluenesulfonic acid,
methyl ester

Other.

Alcohols, phenols, ethers (including epoxides and
acetals), aldehydes, ketones, alcohol peroxides,
ether peroxides, ketone peroxides, and their
derivatives:
Alkyl cresols

403.20

Alkyl phenols

403.24

6 - Chloro - m - cresol [0H= 1]

403.28

Naphthols

403.32

2 - Naphthol • 3,6 - disulfonic acid and its salts

403.36

Nitrophenols

403.41

Resorcinol

1.7f perlb.
+ 12.5%
adval.
!.?• per lb.
+23.3%
adval.
1.7e per lb.
+ 13%
ad val.

7< per lb.
+40%
ad val.
It per lb.
+74.5%
adval.
It per lb.
+41.5%
adval.

1.7< per lb.
+ 12.5%
ad val.
1.7<! per lb.
+ 15.9%
adval.

7* per lb.
+40%
ad val
7c per lb.
+51%
ad val.

1.7^ per lb.
+ 12.6%
adval.
1.7t per lb.
+ 25%
ad val.
1.5t per lb.
+ 10.2%
adval.
1.7« per lb.
+ 22.7%
adval.
1.4f per lb.
+ 13.5%
adval.
1.7< per lb.
+ 16.1%
adval.
1.7* per lb.
+ 12.5%
adval.

It per lb.
+40.5%
adval.
7t per lb.
+80%
ad val.
It per lb.
+41%
ad val.
It per lb.
+73%
ad val.
It per lb.
+54%
ad val.
Tt per lb.
+51.5%
ad val.
7e per lb.
+40%
ad val.

1.7* per lb.
+ 12.5%
adval.

It per lb.
+40%
ftd val.

1.7t per lb.
+ 13.7%
adval.
1.7* per lb.
+ 13.7%
adval.

7( per lb.
+44%
ad val.
7( per lb.
+44%
ad val.

Other:
403.45

Alcohols

403.49

Phenols and phenol - alcohols:
4,4' - Isopropylidenediphenol
(Bisphenol A)

403.51

Other.

i

93 STAT. 209

PUBLIC LAW 96-39—JULY 26, 1979

403.52

Halogenated, sulfonated, nitrated, or
nitrosated derivatives of phenols or
phenol-alcohols:
m - Chlorophenol;
2,5 - Dihydroxybenzene - sulfonic
acid, potassium salt;
8,6-Dihydroxy-2,7naphthalenedisulfonic acid;
8,6-Dihydroxy-2,7naphthalenedisulfonic acid,
sodium salt;
Dinitro - o - cresol;
4-Hydroxy-1 -naphthalenesulfonic acid;
4-Hydroxy-1 -naphthalenesulfonic acid, sodium salt (1 Naphthol - 4 • sulfonic acid);
1 - Naphthol - 3,6 - disulfonic acid;
and
4 - Nitro - m - cresol

1.7* per lb.

+ H.3%
ad val.

403.56

Other.

7tperlb.
4-45.596
ad val.

I.7t perlb.
+ 19.4%
ad val.

7 t per lb.

1.7eperlb.
-t-12.5%
ad val.

7«perlbi
+40%
ad val.

1.7f per lb.
-1-22%
ad val.

7 ( per lb.
+70.5%
ad val;

l.lt

7<perlb.
+40%

1.7e per lb.
-H3%
ad v d .

Ttperlb.
+41.5%
ad val.

1.7f perlb
-H2.9%
ad val.

7( perlb.
+41%
ad vaL

+62%
ad val.

Ethers, ether - alcohols, ether - phenols,
ether - alcohol - phenols, peroxides of
alcohols, ethers, and ketones, and their
halogenated, sulfonated, nitrated, or
nitrosated derivatives:
6 • Chloro - 2 - nitroanisole;
Dimethyl diphenyl ether;
4 - Ethylguaiacol;
2-(a-Hydroxyethoxy) phenol; and
Nitrochlorohydroquinone, dimethyl
ester

403.61

403.64

403.68

403.72

403.76

403.81

59-194 0 — 81

Other.

Epoxides, epoxyalcohols, epoxy phenols, and epoxyethers, with a threeor four - member ring, and their
halogenated, sulfonated, nitrated, or
nitrosated derivatives

Acetals and hemiacetals and single and
complex oxygen function acetals and
hemiacetals, and their halogenated,
sulfonated, nitrated, or nitrosated
derivatives

Aldehydes, aldehyde-alcohols, aldehydeethers, aldehyde-phenols, and other
single or complex oxygen - function
aldehydes; cyclic polymers of
aldehydes and paraformaldehyde

Halogenated, sulfonated, nitrated, or
nitrosated derivatives of aldehydes,

16 : QL3

per lb.
-1-12.5%
ad val.

93 STAT. 210

PUBLIC LAW 96-39—JULY 26, 1979
aldehyde - alcohols, aldehyde - ethers,
aldehyde - phenols, and other single or
complex oxygen - function aldehydes,
cyclic polymers of aldehydes and
paraformaldehyde

403.88

403.92

403.96

404.00

Ketones, ketone - alcohols, ketonephenols, ketone - aldehydes, quinones,
quinone - alcohols, quinone - phenols,
quinone - aldehydes, and other single
or complex oxygen - function ketones
and quinones, and their halogenated,
sulfonated, nitrated, or nitrosated
derivatives:
2,3-Dichloro-l,4naphthoquinone

l,8-Dihydroxy-4,5dinitroanthraquinone.

Other.

Carboxylic acids, anhydrides, halides, acyl
peroxides, peroxyacids, and their derivatives:
1,2,4 - Benzenetricarboxylic acid, 1,2 dianhydride (Trimellitic anhydride)

404.04

Benzoic acid

404.08

Benzoyl chloride

404.12

Isophthalic acid

404.16

Terephthalic acid

404.20

Terephthalic acid, dimethyl ester

404.24

1.7« per lb
+ 24.3%
ad val.

7t per lb.
+ 77.5%
ad val.

1.4t per lb.
+ 13%
ad val.

7* per lb.
+ 52%
ad val.

1.5* per lb.
+10.8%
ad val.
1.7* per lb.
+ 13.1%
ad val.

7* per lb.
+43%
ad val.
7t per lb.
+42%
ad val.

1.7t per lb.
+12.5%
ad val.
l.Tt per lb.
+12.5%
ad val.
1.7« per lb.
+13.7%
ad val.
1.7f per lb.
+ 12.5%
ad val.
1.7< per lb.
+24%
ad val.

7« per lb.
+40%
ad val.
7« per lb.
+ 40%
ad val.
It per lb.
+44%
ad val.
7« per lb.
+40%
ad val.
7« per lb.
+ 77%
ad val.

1.7* per lb.
+ 13.1%
ad val.

7t per lb.
+42%
ad val.

Other:
Monocarboxylic acids and their
anhydrides, halides, peroxides, and
peracids, and their halogenated,
sulfonated, nitrated, or nitrosated
derivatives:
Benzoic anhydride;
tert - Butyl peroxybenzoate;
4 - Chloro - 3 - nitrobenzoic acid;
m - Chloroperoxybenzoic acid;
Metrizoic acid;
p - Nitrobenzoyl chloride;
2 - Nitro - m - toluic acid;
3 - Nitro - o - toluic acid; and

•.o«

93 STAT. 211

PUBLIC LAW 96-39—JULY 26, 1979

404.28

Phenylacetic acid (a - Toluic acid)...

1.7t per lb.
+ 12.6%
ad val.

7 t per lb.
+40.5%
ad val.

Other.

1.7e per lb.
+ 17.9%
ad val.

7t per lb.
+57%
ad val.

1.7« per lb.
+ 11.6%
ad val.

7e per lb.
+ 37%
ad val.

1.7« per lb.
+ 22.7%
ad val.

7e per lb.
+ 73%
ad val.

1.7t per lb.
+ 12.5%
ad val.

7e per lb.
+ 40%
ad val.

Hydroxycinnamic acid and its s

1.4t per lb.
+ 12.1%
ad val.

7e per lb.
+48.5%
ad val.

Other.

1.7« per lb.
+ 17.9%
ad val.

7« per lb.
+57%
ad val.

1.7* per lb.
+13.4%
ad val.

7 t per lb.
+ 43%
ad val.

Polycarboxylic acids and their
anhydrides, halides, peroxides, and
peracids, and their halogenated,
sulfonated, nitrated, or nitrosated
derivatives:
404.32

404.36

Naphthalic anhydride;
Phthalic acid;
4 - Sulfo -1,8 - naphthaUc
anhydride; and
Terephthalaldehyde

Other.

Carboxylic acids with alcohol, phenol,
aldehyde, or ketone function and other
single or complex oxygen - function
carboxylic acids and their anhydrides,
halides, peroxides, and peracids, and
their halogenated, sulfonated, nitrated,
or nitrosated derivatives;
404.40

404.44

404.46

404.48

p - Anisic acid;
Benzilic acid;
Benzilic acid, methyl ester;
2,3 - Cresotic acid;
m - Hydroxybenzoic acid;
2 - Hydroxybenzoic acid, calcium
salt;
1 - Hydroxy - 2 - naphthoic aicid;
2 - Hydroxy - 1 - naphthoic acid;
1 - Hydroxy - 2 - naphthoic acid.
phenyl ester;
3 - Phenoxybenzoic acid;
a - Resorcylic acid;
•y - Resorcylic acid; and
5 - Sulfosalicylic acid

Gentisic acid;
p - Hydroxybenzoic acid; and

Esters of inorganic acids (except hydrocyanic acid,
hydrogen halides, and hydrogen sulfide) and their
derivatives

Amines and their derivatives:
404.52

7 - Amino -1,3 - naphthalenedisulfonic acid
and its salts;
5 - Amino - 2 - naphthalenesulfonic acid and its
salts;

93 STAT. 212

PUBLIC LAW 96-39-JULY 26, 1979
8 - Amino - 1 - naphthalenesulfonic acid and its
salts;
4 - Amino - 2 - stilbenesulfonic acid and its
salts;
m - Phenylenediamine;
0 - Phenylenediamine;
N - Phenyl - 2 - naphthylamine;
Toluene - 2,4 - diamine; and 2,4-Xylidine

404.56

8 - Amino - 2 - naphthalenesulfonic acid and its
salts

1.4tperlb.
+12.1%
advai.

7* per lb.
+48.5%
ad val.

1.40 per lb.
+9.7%
ad val.

7* per lb.
+39%
ad val.

404.60

Aniline

1.7* per lb.
+13.6%
ad val.

7* per lb.
+43.5%
ad val.

404.64

4,4' - Diamino - 2,2' • stilbenedisulfonic acid....

1.7t per lb.
+25%
ad val.

7* per lb.
+80%
ad val.

404.68

N,N - Dimethylaniline

1.7* per lb.
+12.5%
ad val.

7* per lb.
+40%
ad val.

404.72

N - Methylaniline; and 2,4,6 - Trimethylaniline
(Mesidine)

1.5* per lb.
+9.3%
ad val.
1.7* per lb.
+ 12.5%
ad val.

7* per lb.
+37%
ad val.

1.7* per lb.
+12.5%
ad val.

7* per lb.
+40%
ad val.

404.76

4,4' - Methylenedianiline

404.80

Nitrodiphenylamine

Other:
404.84

5 - Amino - 2 - (p - aminoanilino)
benzenesulfonic acid;
0 - Aminobenzenesulfonic acid (Orthanilic
acid);
p - Aminobenzoylamino - naphthalene
sulfonic acid;
8 - Amino - 2,7 - naphthalene - disulfonic
acid;
4 - Amino - 1 - naphthalene - sulfonic
acid, sodium salt;
6 - Amino - 1 - naphthalene - sulfonic acid
(Laurent's acid);
7 - Amino -1,3,6 - naphthalene trisulfonic acid;
Aminophenol, substituted;
8 - Anilino - 1 - naphthalene - sulfonic
acid (Phenyl Peri acid);
6 - Chlorometanilic acid;
2 - Chloro - 5 - nitroaniline;
4 - Chloro - 3 - nitroaniline;
4 - Chloro - o - toluidine [ N H a = 1 ] and
hydrochloride;
6 - Chloro - 0 - toluidine [ N H z = 1 ]
(Chloro - 0 - toluidine [CHs = 1]);
6 - Chloro - 0 - toluidine [ N H a = 1 ];
4,4' - Diamino - 3 - biphenyl - sulfonic
acid (3 - Benzidine - sulfonic acid);
2.3 - Dichloroaniline;
2.4 - Dichloroaniline;
8.5 - Dichloroaniline;

7* per lb.
+40%
ad val.

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 213

2,6 - Dichloro - m - toluidine;
N,N - Diethylmetamlic acid;
2,4 - Difluoroaniline;
3,3' - Dimethylbenzidine (o - Tolidine);
3,3' - Dimethylbenzidine hydrochloride;
N,N - Dimethyl - p - toluidine;
p - Ethylaniline;
3 - (N - Ethylanilino)propionic acid,
methyl ester;
N - Ethyl - N - benzyl - m - toluidine;
N - Ethyl - N,N' - dimethyl - N' phenylethylenediamine;
N - Ethyl -1 - naphthylamine;
p - Fluoroaniline;
4,4' - Methylenebi8[2 - chloroaniline];
1,8 - Naphthalenediamine;
m - Nitroaniline;
1 - (p - Nitrophenyl) - 2 - amino - 1 , 3 propane diol;
4 - Nitro - m - phenylenediamine;
Toluene - 2,5 - diamine;
Toluidine carbonate;
2,4,5 - Trichloroaniline;
2.3 - Xylidine; and

404.88

404.92

3.4 - Xylidine

1.7e per lb.
+ 12.4%
adval.

li per lb.
+39.5%
adval.

Other.

1.7* per lb.
+ 18.8%
adval.

7* per lb.
+60%
ad vaL

Amines having one or more oxygen functions, and
their derivatives:
p - Acetaminobenzaldehyde;
2' - Aminoacetophenone;
m • Aminobenzoic acid, technical;
Aminobisphenol ester;
2 - Amino - 4 - chlorophenol;
2 - Amino - 4 - chlorophenol hydrochloride;
2 - Amino - p - cresol;
4 - Amino - o - cresol;
6 - Amino - 2,4 - dichloro - 3 - methyl - phenol;
4 - Amino - 5 - hydroxy -1,3 naphthalenedisulfonic acid (Chicago acid);
4 - Amino - 5 - hydroxy - 1 , 3 naphthalenesulfonic acid, potassium salt;
4 - Amino - 5 - hydroxy - 2,7 naphthalenedisulfonic acid, potassium salt
(H acid, monopotassium salt);
4 - Amino - 5 - hydroxy - 2,7 naphthalenedisulfonic acid, monoiodium salt
(H acid, monosodium salt);
4 - Amino - 5 - hydroxy - 1,3 naphthalenedisulfonic acid, sodium salt;
4 - Amino - 3 - hydroxy - 1 - naphtha lenesulfonic acid;
2 - (3 - Amino - 4 - hydroxyphenyl 8ulfonyl)ethanol;
2 - Amino - 4 - nitrophenol;
2 - Amino - 5 - nitrophenol;
2 - Amino - 4 - nitrophenol, sodium salt;
m - Aminophenol;
2 - (4' - Aminophenoxy)ethyl8ulfate;
1,4 - Bi8[l - anthraquinonylamino] anthraquinone;

PUBLIC LAW 96-39—JULY 26, 1979

STAT. 214

4,4', - Bi8(dimethylainino)benzhydrol
(Michler's hydrol);
5 - Chloro - 2[2',4' - dichlorophenoxy]- aniline;
3,5 - Diaminobenzoic acid;
DL - 3 - (3,4 - Dihydroxyphenyl) - alanine;
1,4 - Dimesidinoanthraquinone;
3,4 - Dimethoxyphenethylamine
(Homoveratrylamine);
4 - Dimethylaminobenzaldehyde;
2 - Hydroxy - 5 - nitrometanilic acid;
/3 - (/3 - Methoxyethoxyethyl) - 4 aminobenzoate;
4 - Methoxymetanilic acid;
6' - Methoxymetanilic acid;
4 - Methoxy - m - phenylenediamine;
5 - Methoxy - m - phenylenediamine sidfate;
6 - (Methylamino) -1 - naphthol - 3 - sulfonic
acid;
7 - (Methylamino) - 1 - naphthol - 3 - ndfonic
acid;
2 - Methyl - p - anisidine [NH2=1];
Nitra acid amide (l-amino-9,10-dihydroN-(3-methoxypropyl)-4-nitro-9,10-dioxo2-anthramide); and
L - Phenylalanine

404.96

405.00

405.03

405.08

405.12

405.16

3' - Aminoacetophenone;
0 - Anisidine;
p - Anisidine;
m - Diethylaminophenol;
3 - Ethylamino - p - cresol;
Iminodianthraquinone;
5 - Methoxy - m - phenylenediamine; and
dl - Phenylephrine base

p - Aminobenzoic acid;
6 - Amino -1 - naphthol - 3 - sulfonic acid and
its salts;
8 - Amino - 1 - naphthol - 5 - sulfonic acid and
its salts;
m - Dimethylaminophenol; and
p - Phenetidine

4 - Chloro - 2,5 - dimethoxyaniline [NH2=1];
and
2,4 - Dimethoxyaniline

Other..

Amides and their derivatives:
4 - Acetamido - 2 - aminophenol.,

2 - Acetamido - 3 - chloro-anthraquinone;
o - Acetoacetanisidide;
0 - Acetoacetotoluidide;
2',4' - AcetoacetoxyUdide; and

1.70 per lb.
+ 12.2%
adval.

70 per lb.
+39%
ad val.

1.50 per lb.
+ 16.2%
adval.

70 per lb.
+65%
ad val.

1.40 per lb.
+12.7%
adval.

70 per lb.
+51%
ad val.

1.50 per lb.
+ 10.4%
adval.
1.70 per lb.
+ 15.6%
adval.

70 per lb.
+41.5%
adval.
70 per lb.
+50%
ad val.

1.70 per lb.
+ 12.5%
adval.

70 per lb.
+40%
ad val.

93 STAT. 215

PUBLIC LAW 96-39—JULY 26, 1979
1 - Amino - 5 - benzamidoanthraquinone..

405.21

Benz&nilide..

405.24

Biligrafin acid; and
3,5 - Diacetamido - 2,4,6 - triiodobenzoic
acid

405.28

405.36

405.41

Other..

Other nitrogen-function compounds (except those in
which the only nitrogen function is a nitro
(—NOa) or anitroso (—NO)group, or an
ammonium salt of an organic acid) and their
derivatives:
Benzonitrile

Diuoaminobenzene(l,3 - Diphenyltriazene)

405.44

Toluenediisocyanates (unmixed)..

405.48

Other
Quaternary ammonium salts and

405.52

7* per lb.
+53%
ad val.
7* per lb.
+40%
ad val.

1.4tperlb.
+8.5%
ad val.

7« per lb.
+34%
ad vaL

1.7«perlb.
+ 12.4%
adval.
1.7«perlb.
+ 18.1%
adval.

7* per lb.
+39.5%
adval.
7« per lb.
+58%
ad vaL

l.Ttperlb.
+ 12.5%
adval.

7« per lb.
+40%
ad val.

1.7* per lb.
+ 12.5%
advai.
1.7«perlb.
+ 12.5%
adval.

7« per lb.
+40%
ad val.
7« per lb.
+40%
ad val.

1.7tperlb.
+ 11.2%
adval.

7t per lb.
+36%
ad val.

Other:
p - Acetanisidide;
Acetoacetbenzylamide;
Acetoacet - 5 - chloro - 2 - toluidide;
p - Acetoacetophenetidide;
N - Acetyl - 2,6 - xylidine (N - Acetyl 2,6 - dimethylaniline);
p - Aminobenzoic acid isooctyl - amide;
2 - Amino - 4 - chlorobenzamide;
4 - Aminohippuric acid;
4' - Amino - N - methylacetanilide;
p - Aminophenyl urethane;
1 - Benzamido - 4 - chloro anthraquinone;
1 - Benzamido - 5 - chloro anthraquinone;
4' - Chloroacetoacetanilide;
3-(N,N-Dihydroxyethyiamino)benzanilide;
2,5-Dihydroxy-N-(2hydroxyethyDbenzamide;
2,5 - Dimethoxyacetanilide;
Gentisamide;
N - (7 - Hydroxy-1naphthyDacetamide; and
Phenacetin, technical

405.82

1.5* per lb.
-(-13.2%
adval.
1.7«perlb.
-(-12.5%
adval.

Carboxyimide-function compounds
(including orthobenzoic sulfimide and

93 STAT. 216

PUBLIC LAW 96-39-JULY 26, 1979
its salts) and imine-function compounds

405.56

405.60

405.64

405.68

405.72

405.76

405.80

405.84

Nitrile-function compounds:
2 - Amino - 4 - chlorobenzonitrile (5
- Chloro - 2 - cyanoaniline);
2 - Amino - 5 - chlorobenzo - nitrile;
4 - Amino - 2 - chlorobenzo - nitrile;
2 - Amino - 5 - nitrobenzonitrile;
(CyanoethyDOiydroxyethyl) - m toluidine;
2 - Cyano - 4 - nitroaniline;
Dichlorobenzonitrile;
Phthalonitrile; and
Tetrachloro - 3 - cyanobenzoic acid,
methyl ester

Other.

Diazo-, azo-, and szoxy - compounds:
p-Aminoazobenzenedisulfonic acid;
4-Aminoazobenzenedisulfonic acid,
monosodium salt;
6 - Amino - 3,4' - azodibenzene sulfonic acid (C.I. acid yellow 9);
and
6 - Bromo - 5 - methyl - IH imidazo [4,5 - b]pyridine

Other

Organic derivatives of hydrazine or
hydroxylamine

Compounds with other nitrogen functions:
Bitolylene diisocyanate (TODD;
o-Isocyanic acid, o-tolyl ester; and
Xylene diisocyanate

Other.

Organo-inorganic compounds (i.e., compounds
having an atom other than carbon, hydrogen,
oxygen, nitrogen, chlorine or other halogen
attached directly to a carbon atom), and their
derivatives:
Benzenethiol (Thiophenol)

405.88

Phenylsulfone

405.92

Sodium tetraphenylboron

,

1.7* per lb.
+ 19.1%
ad val.

7* per lb.
+61%
ad val.

1.7<! per lb.
+12.7%
ad val.
1.7* per lb.
+20.5%
ad val.

7« per lb.
+41%
ad val.
7* per lb.
+65.5%
ad val.

1.7* per lb.
+12.6%
ad val.
1.7* per lb.
+19.9%
ad val.

7* per lb.
+40.5%
ad val.
7* per lb.
+63.5%
ad val.

1.7* per lb.
+ 13.6%
ad val.

7* per lb.
+43.5%
ad val.

1.7e per lb.
+ 12.5%
ad val.
1.7* per lb.
+ 16.2%
ad val.

7* per lb.
+40%
ad val.
7* per lb.
+52%
ad val.

1.7* per lb.
+ 12%
ad val.
1.5* per lb.
+13.3%
ad val.
1.5* per lb.
+ 10%
ad val.

7* per lb.
+38.5%
ad val.
7* per lb.
+53%
ad val.
7* per lb.
+40%
ad val.

PUBLIC LAW 96-39—JULY 26, 1979
405.96

2,4,4', 5' - Tetrachlorophenylsulfone

93 STAT. 217

1.4* per lb.
+ 10.4%
ad val.

7* per lb.
+41.5%
ad val.

1.7* per lb.
+ 12.6%
ad val.
1.7* per lb.
+ 12.5%
ad val.
1.7* per lb.
+21.4%
ad val.

7* per lb.
+40.5%
ad val.
7* per lb.
+40%
ad val.
7* per lb.
+68.5%
ad val.

1.7* per lb.
+ 12.5%
ad val.
1.7* per lb.
+ 17.9%
ad val.

7* per lb.
+40%
ad val.
7* per lb.
+57%
ad val.

1.7* per lb.
+ 17.1%
ad val.

7* per lb.
+55%
ad val.

1.4* per lb.
+ 16.6%
ad val.

7* per lb.
+66.5%
ad val.

1.7* per lb.
+ 12.5%
ad val.

7* per lb.
+40%
ad val.

1.5* per lb.
+ 10%
ad val.

7* per lb.
+40%
ad val.

Other:
406.00
Organo-sulfur compounds
406.05
Organo-mercury compounds
406.08
Other

406.12

Heterocyclic compounds and their derivatives
(including lactones and lactams but excluding
epoxides with three mcmberedrings,anliydrides
and imides of polybasic acids, and cyclic esters of
polyhydric alcohols with polybasic acids):
1,2 Dihydro - 2,2,4 - trimethylquinoline

406.16

2,2' - Dithiobisbenzothiazole

406.20

Ethoxyquin (1,2 - Dihydro - 6 - ethoxy - 2,2,4
trimethylquinoline)

406.24

406.28

406.32

406.36

1 - Hydroxy - 2 - carbazolecarboxylic acid;
2 - Hydroxy - 3 - dibenzofuran - carboxylic
acid; and
7 - Nitronaphth[l,2]oxadiazole - 5 - sulfonic
acid and its salts

2 - Mercaptobenzothiazole, sodium salt (2 Benzothiazolethiol, sodium salt)

2 - Pyridinecarboxaldehyde; and
Vinylcarbazole, mono

Other:
4 - Aminoantipyrine;
2 - Amino - 6 - methoxy - benzothiazole;
2 - Amino - 6 - methyl - benzothiazole;
Aminomethylphenylpyrazole
(Phenylmethylaminopyrazole);
5 - Amino - 3 - phenyl -1,2,4 thiadiazole (3 - phenyl - 5 - amino 1,2,4-thiadiazole);
3 - Amino - 1 - (2,4,6 - trichloro phenyl) - 5 - pjxazolone;
p - Chloro - 2 - benzylpyridine;
4 - Chloro - 3 - (3 - methyl - 5 - oxo-2 pyrazolin -1 - yl) - benzenesulfonic
acid;
4 - Chloro - 1 - methylpiperidine
hydrochloride;
1 - (m - Chlorophenyl) - 3 - methyl - 2 pyrazolin - 5 - one;
1 - (2',5'- Dichlorophenyl) - 3 - methyl - 2

93 STAT. 218

PUBLIC LAW 96-39—JULY 26, 1979
- pyrazolin - 5 - one;
2.3 - Dichloro - 6 - quinoxaline - carbonyl
chloride;
1.4 - Dimethyl - 6 - hydroxy - 3 cyanpyridone - 2;
6 - Ethoxy - 2 - benzothiazolethiol;
0 - Ethylpyrazolone;
2 - Hydroxy - 3 - carbazolecarboxylic
acid;
2 - Hydroxy - 3 - carbazole - carboxylic
acid, sodium salt;
Iminodibenzyl (10,11 - dihydro - 5H dibenz[b,r|azepine;
5 - Imino - 3 - methyl - 1 - (m sulfophenyOpyrazole;
5 - Imino - 3 - methyl - 1 - phenyl pyrazole;
Iminopyrazole - 3 - sulfonic acid;
Indoline;
Isoquinoline;
3 - Methylbenzo[f]quinoline;
3 - Methylbenzothiazole - 2 - hydrazone;
2 - Methylindoline;
1 - methyl - 2 - phenylindole;
Methylpyrazine;
8 - Methylquinoline;
2 - Phenylbenzimidazole;
p - Phenylimidazole;
2 - Phenylimidazole;
2 - Phenylindole;
'
4 - Phenylpropylpyridine;
p - Phenylpyridylacetic acid, methyl
ester;
Picolinic acid;
Primuline base;
Pyrazole (3 - carboxy - 1 - 4 sulphophenylpyrazole - 5 - one);
2.5 - Pyridinedicarboxylic acid;
3 - Quinuciidinol;
Tetramethylpyrazine;
1,9 - Thianthrenedicarboxylic acid;
Thioxanthen - 9 - one (Thioxanthone);
1 - (2,4,6 - Trichlorophenyl) - 3 aminopyrazolone;
2 - (Trifluoromethyl) - phenothiazine;
2,3,5 - Triphenyltetrazolium chloride;
DL - Tryptophan; and

406.40

Xanthen - 9 - one

1.7t per lb.
+ 12.4%
ad val.

7* per lb.
+39.5%
ad val.

Other.

1.7« per lb.
+16.2%
ad val.

7* per lb.
+52%
ad val.

1.7* per lb.
+20.9%
ad val.

7t per lb.
+67%

Sulfonamides, sultones, sulums, and other organic
compounds:
406.44

Copper phthalocyanine ([Phthalocyanato(2 -)]
copper)

Sulfonamides:
406.48

4 - Amino - 6 - chloro - m benzenedisulfonamide;
2 - Amino - N - ethylbenzene •
sulfonanilide;

ad val.

PUBLIC LAW 96-39—JULY 26, 1979
5 - Amino - a,a,a - trifluoro - toluene
2,4 - disulfonamide;
Benzenesulfonamide;
Benzenesulfonyl hydrazide;
2 - Chloro - 4 - amino - 5 -'
hydroxybenzenesulfonamide;
2,5 - Dimethoxysulfanilide; and
Metanilamide

93 STAT. 219

1.7e per lb.
+ 12.8%
ad val.

7« per lb.
+41%
ad val.

406.52

o - Toluenesulfonamide

1.4t per lb.
+14.4%
ad val.

7« per lb.
+67.5%
ad val.

406.56

Other

1.7e per lb.
+ 18%
ad val.

7* per lb.
+67.5%
ad val.

1.7( per lb.
+ 14.5%
ad val.

7t per lb.
+46.5%
ad val.

1.11 per lb.
+ 18.7%
ad val.

7t per lb.
+60%
ad val.

Other

406.61

406.64

All other products, by whatever name known, not provided
for in subpart A or C of this part, including acyclic
organic chemical products, which are obtained, derived, or
manufactured in whole or in part from any of the cyclic
products having a benzenoid, quinoid, or modified benezenoid structure provided for in the foregoing provisions of
this subpart or in subpart A of this part:
Acetone

406.68

Adipic acid

1.7« per lb.
+ 19.8%
ad val.

7^ per lb.
+63%
ad val.

406.72

Caprolactam monomer.

1.5t per lb.
+ 10%
ad val.

7t per lb.
+40%
ad val.

406.76

Cyclohexane

1.7t per lb.
+ 12.5%
ad val.

7« per lb.
+40%
ad val.

406.81

Cyclohexanone

1.7* per lb.
+ 12.5%
ad val.

7« per lb.
+40%
ad val.

406.84

Fumaric acid.

1.7« per lb.
+ 27.2%
ad val.

It per lb.
+87%
ad vat.

406.86

Hexamethylene adipamide..

1.5« per lb.
+ 11.5%
ad val.

7 i per lb.
+46%
ad val.

406.92

Hexamethylenediamine

1.7e per lb.
+20.8%
ad val.

7t per lb.
+66.5%
ad val.

406.96

Maleic anhydride

1.7t per lb.
+ 15.6%
ad val.

7« per lb.
+50%
ad val.

407.00

Methylcyclohezanone

1.5* per lb.
+ 10%
ad val.

7« per lb.
+40%
ad val.

407.05

Other.

1.7t per lb.
+16.8%
ad val.

7« per lb.
+53.5%
ad val.

Ifixtures in whole or in part of any of the products provided
for in this subpart:
407.09

Solvents which contain over 25 percent by weight of

93 STAT. 220

PUBLIC LAW 96-39—JULY 26, 1979
any of the products provided for in this subpart.

407.15

Other.

Subpart C.—Finished Organic Chemical Products
Subpart C headnotes:
1. The provisions of this subpart providing for products
obtained, derived, or manufactured in whole or in part from
products described in subpart A or B of this part shall also
apply to products of like chemical composition having a
benzenoid, quinoid, or modified benzenoid structure artificially produced by synthesis, whether or not obtained, derived,
or manufactured in whole or in part from products described
in the said subpart A or B.
2. The term "pesticides" in items 408.16 to 408.36,
inclusive, means products, such as insecticides, rodenticides,
fungicides, herbicides, fumigants, and seed disinfectants,
chiefly used to destroy undesired animal or plant life.
3. The term "plastics materials" in items 408.44 to
409.18, inclusive, embraces products formed by the condensation, polymerization, or copolymerization of organic chemicals and to which plasticizers, fillers, colors, or extenders
may have been added. The term includes, but is not limited
to, phenolic and other tar - acid resins, styrene resins, alkyd
and polyester resins based on phthalic anhydride, coumarone-indene resins, urethane, epoxy, toluene sulfonamide,
maleic, fumaric, aniline, and polyamide resins, and other
synthetic resins. The plastics materials may be in solid,
semi-solid, or liquid condition, such as flakes, powders, pellets, granules, solutions, emulsions, and other basic forms
not further processed.
4. For the purpose of the classification of merchandise
provided for under items 408.44 to 409.18, inclusive, the
following provisions shall apply:
(a) The term "thermoplastic resins" means those materials in unfinished forms which in their final state as finished
articles are capable of being repeatedly softened by increase
of temperature and hardened by decrease of temperature.
(b) The term "thermosetting resins" (or thermosets)
means those materials in unfinished forms which in their
final state as finished articles are substantially infusible.
Thermosetting resins are often liquids at some stage in their
manufacture or processing and are cured by heat, catalysis,
or other chemical means. After being fully cured, thermosets
cannot be resoftened by heat.

1.7« per lb.
+ 13.6%
ad val.,
but not
less than
the
highest
rate
applicable
to any
component
material
1.7* per lb.
+ 13.6%
ad val.,
but not
less than
the
highest
rate
applicable
to any
component
material

:i^M

7e per lb.
+43.5%
ad val.,
but not
less than
the
highest
rate
applicable
to any
component
material
7t per lb.
+43.5%
ad val.,
but not
less than
the
highest
rate
applicable
to any
component
material

PUBLIC LAW 96-39—JULY 26, 1979
(c) Copoljiners and terpolymers not specially provided for
shall be classified as if they consisted entirely of that monomer which is present in the largest amount by weight on a
resin content basis (i.e., excluding the weight of plasticizers,
liquid diluents, fillers, or other additives). Any polymer consisting of two or more monomers which are present in equal
amounts shall be classified as if it consisted entirely of that
monomer whose poljiner is listed first under the thermoplastic or thermosetting resins, as appropriate.
5. The term "paints and enamel paints" in this subpart
covers dispersions of pigments ur pigmeiit-like materials
with a liquid (vehicle) which are suitable for application to
surfaces as a thin layer, and which dry (harden) to an
opaque, solid film. The vehicle of paints consists of drying
oils or resins which bind the pigment particles together in
the film; the vehicle of enamel paints is principally varnish.
Paints and enamel paints may also contain thinners, driers,
plasticizers, or other agents.
6. The terra "varnishes" in this subpart covers liquid
surface-coating products which contain no pigments or pigment-like materials, and which dry (harden) to a transparent
or translucent film. Shellac varnishes are solutions of shellac
or any other form of lac in a volatile solvent such as ethyl
alcohol. Oleoresinous varnishes consist of resins dissolved in
or reacted with a drying oil, to which thinners, driers, and
plasticizers may be added. Cellulose-derivative varnishes
Gacquers) are solutions of cellulose nitrate or other cellulose
derivatives in a volatile solvent.
7. The terra "stains" in this subpart covers liquids containing transparent or semi-transparent pigments, dyes, or
chemicals, chiefly used to deepen or otherwise alter the
color of wood, but which will not obscure its grain, texture,
or markings.
8. For the purposes of this subpart—
(a) The term "surface-active agents" means synthetic
organic compounds, or mixtures thereof, which function as
surface tension modifiers and are chiefly used for any one or
combination of the following purposes: as detergents, wetting agents, emulsifiers, dispersants, or foaming agents.
(b) The terra "svTithetic detergents" embraces formulated
materials which are used chieily tor household, laundry, and
industrial cleaning purposes, and which consist of one or
more surface-active agents as the active ingredients in combination with colors, brighteners, perfumes, inert diluents,
builders, and extenders such as inorganic salts, pol^-phosphates, polysilicates or sodium carboxymethylcellulose.
9. The terra "plasticizers" in item 409.34 means substances which may be incorporated into a material (usually a
plastic, resin material, or an elastomer) to increase its softness, flexibility, workability, or distensibility.
10. The term "drugs" in this subpart means those substances having therapeutic or medicinal properties and chiefly used as medicines or as ingredients in medicines,
11. For the purposes of the provisions of this subpart
relating to "colors, dyes, stains, and related products"
(except products provided for in items 410.36 to 410.44,
inclusive)—
(a) the specific duties shall be based on standards of
strength which shall be established by the Secretary of the
Treasury, and upon all importations of such articles which
exceed such standards of strength the specific duty shall be
computed on the weight which the article would have if it
were diluted to the standard strength, but in no case shall
any such articles of whatever strength be subject to a less
specific duty than that provided in the respective items of

93 STAT. 221

93 STAT. 222

PUBLIC LAW 96-39—JULY 26, 1979
this subpart;
(b) it shall be unla>\'ful to import or bring into the United
States any such product unless the invoice shall bear a
plain, conspicuous, and truly descriptive statement of the
identity and percentage, exclusive of diluents, of such product;
(c) it shall be unlawful to import or bring into the United
States any such product, if the immediate container or the
invoice bears any statement, design, or device regarding the
product or the ingredients or substances contained therein
which is false, fraudulent, or misleading in any particular;
and
(d) in the enforcement of the foregoing provisions of this
headnote the Secretary of the Treasury shall adopt a standard of strength for each dye or other product which shall
conform as nearly as practicable to the commercial strength
in ordinary use in the United States prior to July 1, 1914.
If a dye or other product has been introduced into commercial use since said date then the standard of strength for
such dye or other product shall conform as nearly as practicable to the commercial strength in ordinary use. If a dye or
other product was or is ordinarily used in more than one
commercial strength, then the lowest conunercial strength
shall be adopted as the standard of strength for suph dye or
other product.
12. Any product described in two or more of the items
under items 411.32 to 412.68, inclusive, is to be classified
in the first applicable item.
Products obtained, derived, or manufactured in whole or in
part from any product provided for in subpart A or B of
this part:
Explosives:
Trinitrotoluene:

408.00

Valued not over 15 cents per pound..............

1.7«perlb.
-Hl%
ad val.

7 ( per lb.
-f45%
ad val.

408.04

Valued over 15 cents per pound

Free

7^ per lb.
-1-45%
ad val.

l.T^perlb.
-1-11%
ad val.

70 per lb.
-f45%
ad val.

l.li

per lb.
-Hlfo
ad val.

7^ per lb.
-f-45%
ad val.

1.7* per lb.
-1-12.5%
ad val.

7$ per lb.
-1-40%
ad val.

408.08

408.12

Other

Ink powders..................................................................

Pesticides:
Not artiHcially mixed:

408.16

Fungicides

408.21

Herbicides (including plant growth regulators):
S - (4 - Chlorobenzyl) - N,N diethylthiocarbamate (Benthiocarb);
2 - (4 - Chloro - 2 - methyl - phenoxy)
propionic acid and its salts;
p - Chlorophenoxyacetic acid;
3-(p - CWorophenyl) - 1 , 1 dimethylurea (Monuron);
3,5 - Dibromo - 4 - hydroxy - benzonitrile
(Bromoxynil);
2 - (2,4 - Dichlorophenoxy) - propionic
acid;

PUBLIC LAW 96-39—JULY 26, 1979
2,2- Dimethyl -1,3 - benzodioxol4 - yl methylcarbamate
(Bendiocarb);
1,1 - Dimethyl - 3 - {a,a,a - tri - nuoro m - tolyDurea (Fluometuron);
o - Diquat dibromide (1,1' - Ethylene 2,2' - dipyridylium dibromide);
3 - Ethoxycarbonylaminophenyl - N phenylcarbamate (Desmedipham);
2 - Ethoxy - 2,3 - dihydro - 3,3 - dimethyl
- 5 - benzofuranyl - methanesulfonate;
3-Isopropyl-lH-2,l,3benzothiadiazin - 4 (3H) - one - 2,2 dioxide (Bentazon);
Isopropyl - N - (3 - chlorophenyl)
carbamate (CIPC);
Methyl - 4 - aminobenzenesulfonyl carbamate (Asulam); and
o - Paraquat dichloride

Other.

408.22

408.24

Insecticides:
1,2 - Benzisothiazolin - 3 - one;
N'-(4-Chloro-o-tolyl)-N,Ndimethylformamidine;
1,1 - Dichloro - 2,2 - bis(p - ethyl phenyl) ethane;
0,0 - Diethyl - S - [(6 - chloro - 2 - oxo benzoxazolin - 3 - yl)
methyl]phosphorodithioate
(Fhosalone); and
0,0 - Dimethyl - 0 - (4 - nitro - m tolyOphosphorothioate (Fenitrothion).

Other.

408.28

408.32

408.36

Other..

Other.

408.41

Photographic chemicals.

408.44

Plastics materials:
Concentrated dispersidu of pigments in plastics
materials

.?• per lb.
+ 12.6%
ad val.
.7< per lb.
+ 15.1%
ad val.

7t per lb.
+ 40.5%
ad val.
7* per lb.
+48.5%
ad val.

1.7« per lb.
+ 12.8%
ad val.
IJt per lb.
+ 20.1%
ad val.
1.7* per lb.
+ 12.5%
ad val.
1.7* per lb.
+9.7%
ad val.
3i per lb.
+21%
ad val.

7* per lb.
+ 41%
ad val.
7t per lb.
+64.5%
ad val.
7« per lb.
+ 40%
ad val.
7f per lb.
+31%
ad val.
7« per lb.
+50%
ad val.

1.4e per lb.

It per lb.
+45%
ad val.
7« per lb.
+45%
ad val.
H per lb.
+57%
ad val.

+9%
408.48

Paints and enamel paints

ad val.
lAt per lb.

+9%
408.52

Varnishes and lacquers

Other:
Thermoplastic resins:

93 STAT. 223

ad val.
1.4t per lb.
+ 11.4%
•d val.

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 224

Petroleum hydrocarbon and coumarone indene resins

408.54

408.61

Polyamide resins, nylon type

408.64

Polycarbonate resins

408.68

Polyester resins, saturated

408.72

Acrylonitrile - butadiene - styrene (ABS)
resins

Methyl methacrylate - butadiene - styrene
(MBS) resins

408.76

408.81

Styrene - acrylonitrile (SAN) resins

408.84

Polystyrene resins and styrene
copolymers, terpolymers (except ABS,
MBS, and SAN resins)

Other

408.88

408.92

Thermosetting resins:
Alkyd resins

408.96

Allyl resins (e.g., diallyl phthalate)

409.02

Epoxy resins

409.06

Phenolic resins

409.10

Polyester resins, unsaturated

409.14

Polyurethane resins

409.18

Other

409.22

409.26

409.30

Products chiefly used as assistants in preparing or
finishing textiles:
Surface-active agents and synthetic detergents

Other

Products (except those in items 409.22 and 409.26)

1.4t per lb.
+9.8%
ad val.
1.4e per lb.
+ 10.3%
ad val.
1.4t per lb.
+9%
ad val.
I At per lb.
+9%
ad val.

It per lb.
+49%
ad val.
7^ per lb.
+51.5%
ad val.
7« per lb.
+45%
ad val.
It per lb.
+45%
ad val.

1.4$ per lb.
+9.4%
ad val.

It per lb.
+47%
ad val.

1.4* per lb.
+ 13.5%
ad val.
1.4^ per lb.
+9.1%
ad val.

7« per lb.
+67.6%
ad val.
It per lb.
+45.5%
ad val.

1.4t per lb.
+9.2%
ad val.
1.4« per lb.
+9.8%
ad val.

7* per lb.
+46%
ad val.
It per lb.
+49%
ad val.

lAi per lb.
+9%
ad val.
I At per lb.
+9%
ad val.
lAt per lb.
+9.4%
ad val.
1.4e per lb.
+9.6%
ad val.
1.4t per lb.
+9%
ad val.
I At per lb.
+10.3%
ad val.
1.4« per lb.
+9%
ad val.

7« per lb.
+45%
ad val.
7e per lb.
+45%
ad val.
7« per lb.
+47%
ad val.
It per lb.
+48%
ad val.
7* per lb.
+45%
ad val.
It per lb.
+51.5%
ad val.
It per lb.
+45%
ad val.

lAt per lb.
+ 10.7%
ad val.
1.4«perlb.
+9.9%
ad val.

7« per lb.
+53.5%
ad val.
It per lb.
+49.5%
ad val.

PUBLIC LAW 96-39—JULY 26, 1979
chiefly used for any one or combination of the following purposes: As detergents, wetting agents
emulsifiers, dispersants, or foaming agents

l.li

per lb.
+ 18.9%
adval.

93 STAT. 225
7« per lb.
+44.5%
adval.

409.34

Products chiefly used as plasticizers

l.it

It per lb.
+57%
ad val.

409.38

Sodium benzoate

409.42

Synthetic tanning materials

1.5t per lb.
+ 15.3%
adval.
3.5t per lb.
+24.4%
adval.

7 t per lb.
+65.5%
adval.
7 t per lb.
+48.5%
adval.

1.5t per lb.
+ 14%
ad val.

Bt per lb.
+28%
ad val.

1.5t per lb.
+ 14.4%
adval.

3«perlb.
+29%
ad val.

22.6% ad
val.

It per lb.
+63.5%
adval.

per lb.
+ 17.7%
adval.

Colors, dyes, stains, and related products:
409.46

Sulfur black, "Colour Index Nos. 53185, 53190, and
53195"

409.50

Vat blue 1 (synthetic indigo), "Colour Index No.
73000"

409.54

409.58

Acid blue 45, 106;
Acid yellow 116;
Basic blue 3;
Basic red 14;
Basic yellow 1, 11, 13;
Direct blue 86;
Direct red 83;
Direct yellow 28;
Disperse red 4;
Fluorescent brightening agent 32;
Solvent orange 11;
Solvent yellow 25;
Vat brown 3;
Vat orange 2, 7; and
Vat violet 9, 13;
all the foregoing obtained, derived, or manufactured in
whole or in part from any product provided for in
subpart A or B of this part

Acid black 31, 50, 94, 129;
Acid blue 54, 127, 129, 143;
Acid brown 44, 46, 48, 58, 188, 189;
Acid green 40;
Acid red 130, 145, 174, 211;
Acid violet 19, 31, 41, 48;
Acid yellow 2, 75;
Basic orange 22;
Basic red 13;
Direct black 62, 91;
Direct blue 92, 106, 108, 109, 160, 172;
Direct brown 103, 115, 116;
Direct green 5, 29, 31;
Direct orange 37;
Disperse blue 30;
Fluorescent brightening agent 18, 24;
Ingrain blue 2;
Mordant black 8;
Mordant green 47;
Mordant red 17, 27;

59-194 0 - 8 1

17 : OL3

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 226

Reactive black 1;
Reactive blue 1, 2, 4;
Reactive orange 1;
Reactive red 1, 2, 3, 5, 6;
Reactive yellow 1;
Vat blue 2;
Vat red 44;
Vat solubilized orange 3; and
Vat yellow 4, 20;
all the foregoing obtained, derived, or manufactured in
whole or in part from any product provided for in
subpart A or B of this part

409.62

409.66

409.70

17.7% ad
val.

Colors, dyes, and stains (except toners), whether soluble or not in water, obtained, derived, or manufaC'
tured in whole or in part from any product provided
for in subpart A or B of this part:
Acid dyes:
Acid black 61, 63, 76, 83, 117, 127, 131,
132, 139, 164, 170, 183, 194;
Acid blue 47, 60, 61, 66, 72, 81, 90,
102, 112, 123, 126, 127:1, 130, 133, 140,
142, 147, 151, 172, 182, 185, 193, 204,
205, 208, 209, 221, 225, 229, 239, 242,
247, 250, 254, 260, 261, 264, 266, 268,
288, 290, 296, 317;
Acid brown 10, 11, 30, 33, 45, 50, 68, 83,
100, 101, 103, 104, 105, 106, 126, 127,
147, 158, 160, 161, 162, 163, 165, 180,
191, 195, 224, 226, 227, 235, 237, 239,
248, 266, 267, 270, 276, 282, 283, 289,
290, 291, 298, 304, 311, 314, 315, 321,
322, 324, 325, 330, 331, 355, 358, 359,
360, 361, 362;
Acid green 26, 28, 41, 43, 60, 68, 70, 71,
73, 80, 82, 84, 92, 93, 94, 108;
Acid orange 3, 19, 28, 33, 43, 47, 61, 86,
89, 94, 102, 126, 142;
Acid red 37, 42, 48, 57, 58, 92, 111, 118,
127, 131, 138, 143, 155, 161, 199, 216,
226, 227, 228, 249, 252, 257, 259, 260,
261, 263, 274, 281, 282, 283, 301, 303,
310, 315, 331, 332, 336, 357, 361, 362,
392;
Acid violet 9, 34, 36, 47, 66, 75, 80, 90,
103, 109, 111, 121;
Acid yellow 7, 64, 96, 111, 127, 136, 155,
167, 183, 184, 194, 218, 223;
Copper phthalocyanine - 3,3',4,4' - tetrasulfonic acid; and
Copper phthalocyanine - 4,4',4",4"' - tetra23% ad val.
sulfoiiic acid

Other..

Basic dyes:
Basic black 7;
Basic blue 41, 45, 48, 55, 62, 66, 71, 78,
80, 81, 141;
Basic green 6, 8;
Basic orange 30, 35, 36, 37, 43,44;

30.7%
ad val.

7t per lb.
+50%
ad Tid.

7* per lb.
+52%
ad val.
?• per lb.
+69.5%
ad val.

93 STAT. 227

PUBLIC LAW 96-39—JULY 26, 1979
Basic red 23, 28, 29, 43, 44, 46, 56, 100;
Basic violet 2, 22, 25, 37,38; and
Basic yellow 19, 23, 24, 25, 39, 40, 45, 54,
56,63, 70

409.74

409.78

409.82

409.86

Other..

Direct dyes:
Direct black 51, 69, 112, 118,122;
Direct blue 74, 77, 90, 137, 156, 158,
158:1, 207, 211, 225, 244, 267;
Direct brown 97, 113, 157, 169, 170, 200,
212, 214;
Direct green 33, 59, 67, 68;
Direct orange 17, 60, 105, 106, 107, 118;
Direct red 9, 89, 92, 95, 111, 127, 173,
207;
Direct violet 47, 93; and
Direct yellow 39, 68, 93, 95, 96, 98, 109,
110. 133

Other.,

409.94

409.96

30.9%
ad val.

23.8% ad
val.
28.6% ad
val.

7« per lb.
+51%
ad val.
It per lb.
+70%
ad val.

7t per lb.
+53.5%
ad val.
7* per lb.
+64.5%
ad val.

Disperse dyes:
Disperse blue 19, 26, 55, 56, 58, 72, 79, 83,
84, 93, 95, 122, 125, 128, 154, 165, 180,
183, 185, 200, 284, 285, 288, 295, 296;
Disperse brown 19;
Disperse green 9;
Disperse orange 7, 13, 20, 31, 47, 48, 56,
63, 70, 80, 96, 127, 137;
Disperse red 44, 72, 73, 90, 93, 107, 118,
121, 122, 131, 133, 134, 151, 184, 202,
203, 224, 278, 282, 310;
Disperse violet 23, 63; and
Disperse yellow 13, 63, 65, 82, 91, 107,
119, 122, 124, 126, 139, 184

409.90

22.6%
ad val.

Other

Fluorescent brighteners

Solvent dyes:
Solvent black 2, 3, 27, 28, 34;
Solvent blue 49, 51, 53, 67, 97;
Solvent brown 1, 28, 42, 44;
Solvent green 4, 5, 7, 19, 28, 213;
Solvent orange 45, 54, 63, 67;
Solvent red 18, 19, 23, 27, 35, 92, 110,
118, 119, 124, 125, 130, 131, 132, 160;
Solvent violet 2, 23; and
Solvent yellow 1, 32, 48, 64, 89, 93, 98,
160

22.5% ad
val.
27.8% ad
val.
19% ad val.

19.9% ad
val.

7t per lb.
+51%
ad val.
It per lb.
+62.5%
ad val.
7* per lb.
+43%
ad val.

It per lb.
+45%
ad val.

93 STAT. 228

PUBLIC LAW 96-39—JULY 26, 1979
410.00

410.04

410.08

410.12

Other

Keactive dyes:
Reactive black 4,10,13, 21, 23, 26, 84, 35,
41;
Reactive blue 7, 8, 10, 13, 18, 22, 23, 24,
26, 29, 34, 3d, 40, 41, 42, 43, 44, 50,
51, 52, 65, 66, 67, 69, 74, 75, 77, 78,
79, 82, 94, 103, 104, 114, 116, 118, 136,
140,156,157, 160;
Reactive brown 2,5,12,18,19, 23;
Reactive green 5,6, 8,12,15,16;
Reactive orange 5,9,10,11,15, 20, 29, 33,
34, 35, 42, 44, 45, 62, 64, 67, 69, 70,
71, 82, 84;
Reactive red 4, 7, 8,12,13, 16, 17, 19, 21,
29, 40, 42, 45, 55, 56, 66, 78, 82, 83,
84, 86, 99, 104, 116, 119, 121, 122, 123,
124, 132,134, 151,152,159;
Reactive violet 3,12, 23, 24; and
Reactive yellow 4, 6,11,12,15, 25, 27, 29,
35, 41, 52, 57, 58, 64, 81, 82, 85, 87,
110
20.5% ad
val.
Other..

27.8% ad
val.

7e per lb.
+63%
ad val.

It per lb.
+46.5%
ad val.
7t per lb.
+62.5%
ad val.

Vat dyes:
Solubilized vat blue 5;
Solubilized vat orange 1;
Solubilized vat yellow 7, 45,47;
Vat black 19,30, 31;
Vat blue 19, 21, 66;
Vat brown 33, 57;
Vat green 28,48;
Vat orange 5,13;
Vat red 15,41; and
Vat yellow 46

410.16
Other
410.20
Other
410.24

28% ad val.

20.9% ad
vaL
32.9% ad
vaL
21.9% ad
val.

Natural alizarin and natural indigo; colors, dyes, and
stains (except toners), whether soluble or not in
water, obtained, derived, or manufactured in whole
or in part from natural alizarin or natural indigo;
color acids, color bases, indoxyl, indoxyl compounds,
and leuco-compounds (whether colorless or not), obtained, derived, or manufactured in whole or in part
firom natural alizarin, natural indigo, or any product
provided for in subpart A or B of this part
2.8* per lb.
+28%
ad val.
Golor lakes and toners, obtained, derived, or manufactured in whole or in part from natural alizarin, natural indigo, or any product provided for in subpart A
or B of this part:

7t per lb.
+47.5%
ad val.
7* per lb.
+74.5%
ad val.
7f per lb.
+49.5%
ad val.

7« per lb.
+70%
ad val.

93 STAT. 229

PUBLIC LAW 96-39—JULY 26, 1979
410.28

Pigment black 1;
Pigment blue 16, 18;
Pigment brown 22, 23, 25;
Pigment green 8;
Pigment orange 31, 34, 36, 51;
Pigment red 9, 14, 34, 48:3, 52, 112,
146, 151, 166, 169, 170, 171, 175,
178, 180, 185, 188, 192, 199, 208,
221; and
Pigment yellow 49, 81, 97, 101, 109,

139, 144,
176, 177,
209, 220,
110, 117,

1.7t per lb.
+ 13.3%
ad val.
1.7* per lb.
+13.6%
ad val.
1.7« per lb.
+ 15%
ad val.

7e per lb.
+46%
ad val.
7« per lb.
+ 70.5%
ad val.
?• per lb.
+ 53%
ad val.
7« per lb.
+ 54.5%
ad val.
7t per lb.
+60%
ad val.

1.7* per lb.
+ 25%
ad val.
1.7e per lb.
+12.5%
ad val.
1.7t per lb.
+19.2%
ad val.
1.7e per lb.
+ 12.5%
ad val.
1.7* per lb.
+9.4%
ad val.
1.7t per lb.
+ 20%
ad val.

7« per lb.
+ 45%
ad val.
7« per lb.
+45%
ad val.
It per lb.
+69.5%
ad val.
7<; per lb.
+45%
ad val.
7« per lb.
+ 34%
ad val.
7« per lb.
+ 72%
ad val.

I At per lb.
+ 12.1%
ad val.
1.7t per lb.
+ 22.7%
ad val.
1.7e per lb.
+ 13.7%
ad val.

7« per lb.
+54.5%
ad val.
7« per lb.
+82%
ad val.
7e per lb.
+49.5%
ad val.

127

20.4% ad
val.

410.32

Other

31.3% ad
val.

410.36

Fast color bases

410.40

Fast color salts

410.44

Naphthol AS and derivatives.

410.48

Products suitable for medicinal use, and drugs:
Obtained, derived, or manufactured in whole or in part
from any product provided for in subpart A or B of
this part:
Products suitable for medicinal use:
Acetanilide

410.52

Benzaldehyde

410.56

Benzoic acid

4ia60

2 - Naphthol (Beta - naphthol)

410.64

Resorcinol

410.66

Salicylic acid and its salts.

410.68

Drugs:
Acetphenetidine (Phenacetin).

410.72

Acetylsalicylic acid (Aspirin)

410.76

Antipyrine

410.80

5 - Chloro - 7 - iodo - 8 - quinolinol
dodochlorhydroxyquin) and 2 - [1 (p - chlorophenyl) - 3 - dimethyl aminopropyl]pyridine maleate

y*

93 STAT. 230

PUBLIC LAW 96-39—JULY 26, 1979

410.84

1.4t per lb.
+ 16.3%
adval.
1.7e per lb.
+24.8%
adval.

7* per lb.
+73.5%
adval.
7* per lb.
+ 101.5%
adval.

1.2t per lb.
+8.5%
ad val.

7* per lb.
+45%
ad val.

1.4* per lb.
+ 12.6%
adval.
1.4* per lb.
+ 12.6%
adval.

7* per lb.
+ 63%
ad val.
7* per lb.
+63%
ad val.

1.4* per lb.
+ 11.7%
adval.

7* per lb.
+58.5%
adval.

1.4* per lb.
+ 10.2%
adval.
1.4* per lb.
+ 10.2%
adval.
1.7* per lb.
+ 14.8%
adval.
1.4* per lb.
+ 13%
ad val.
1.7* per lb.
+ 12.5%
adval.

7* per lb.
+51%
ad val.
7* per lb.
+51%
ad val.
7* per lb.
+53%
ad val.
7* per lb.
+58.5%
adval.
7* per lb.
+45%
ad val.

1.4* per lb.
+ 17.8%
adval.

7* per lb.
+80%
ad val.

1.4* per lb.
+28.5%
adval.

7* per lb.
+ 128.5%
adval.

1.7* per lb.
+ 16.4%
adval.

7* per lb.
+59%
ad val.

1.7* per lb.
+ 13.5%
adval.
1.7* per lb.
+28.9%
adval.

7* per lb.
+48.5%
adval.
7* per lb.
+ 104%
adval.

6 - Ethyl - 5 - phenylhexahydro- pyrimidine -

410.88

-

'

•

•

>

.

'

.

Hydantoin derivatives:
Methylphenethylhydantoin (Mephcnytoin)

410.92

410.96

Imidazoline derivatives:
2 - Benzyl - 4,5 - imidazoline
hydrochloride (Tolazoline

411.00

Phenylbenzylaminoethylimidazoline

411.04

Other

411.08

411.12

411.16

411.20

411.24

Sulfadiazine, sulfaguanidine, sulfamerazine,
sulfapyridine, and salicylazosulfapyridine

411.28

•

Other:
Alkaloids and their salts and other derivatives:
Dphedrine, pseudoephedrine,
racephedrine, and their salts

411.32

Papaverine and its salts:
Ethaverine hydrochloride

411.36

Other......................................

411.40

^

93 STAT. 231

PUBLIC LAW 96-39—JULY 26, 1979
411.44

OdwR
Arecoline, hydrobromide;
Ergonovine maleate;
Lobeline sulfate;
Meperidine hydrochloride;
Nicotinyi alcohol
tartrate; and
Quinacrine hydrochloride.

411.48

411.52

411.56

Other..

Antihistamines, including those chiefly
used as antinauseants:
Diphenhydramine;
Promethazine hydrochloride;
and
IViprolidine hydrochloride

Other.

411.60

Anti-infective agents:
AntibioUcs:
Ampicillin and its salts.

411.64

Penicillin G salts.,

411.68

Penicillin, not specially provided
for
Caifecillin, sodium;
Clozacillin, sodium;
Diclozacillin, sodium;
Eucloxadllin
(Floxaciilin);
Oxacillin, sodium.

411.72

411.76

411.80

411.84

411.90

Other.

Other.

Anti-infective sulfonamides:
Sulfathiazole and sulfathiazole
sodium...............................

Other..

Antinnfectihre agents, not specially
provided for
Acriflavine;

1.7«perlb.
-1-13.9%
adval.
1.7eperlb.
-f24.5%
adval.

7<perlb.
+50%
ad val.
7< per lb.
+88%
ad val.

1.7tperlb.
+12.5%
adval.
1.7eperlb.
-f-22.8%
adval.

7< per lb.
+45%
ad val.
7« per lb.
+82%
ad val.

1.7eperlb.
+13.5%
adval.
1.7«perlb.
+13.6%
adval.

7* per lb.
+48.5%
adval.
7< per lb.
+49%
ad val.

1.7«perlb.
+12.5%
adval.
1.70 per lb.
+15.7%
adval.
1.7tperlb.
+12.5%
adval.

70 per lb.
+45%
ad val.
70 per lb.
+56.5%
adval.
70 per lb.
+45%
ad val.

1.7«perlb.
+36.9%
adval.
1.7«perlb.
+26.6%
adval.

70 per lb.
+133%
adval.
70 per lb.
+96%
ad val.

93 STAT. 232

PUBLIC LAW 96-39—JULY 26, 1979
1
1
t
y..,

j

..

'"

Acriflavine hydrochloride;
Bunamidine hydrochloride;
Carbadox;
Clopidol;
Crotamiton;
Decoquinate;
Diiodohydroxyquin;
Ethionamide;
Nicarbazin;
Niclosamide;
Oxyquinoline
sulfate;
Pentamidine;
Phenylmercuric
nitrate;
Pyrazinamide;
Stibophen;
Thimerosal;
Thymol iodide;
Tolnaftate; and
1.7* per lb.
+12.8%
ad val.
1.7* per lb.
+ 18.7%
ad val.

Other

411.94

Autonomic drugs, except alkaloids and
their derivatives:
Cromolyn, sodium;
Furosemide;
Glipizide;
Isoetharine hydrochloride;
Isoxsuprine hydrochloride;
Nylidrin hydrochloride;
I
Procyclidine;
1
Salbutamol (Albuterol); and
I'Mi
Terbutaline sulfate

411.98

•;!•••>

Other

412.02

412.06
'hi.

412.10

412.14

Cardiovascular drugs, except
alkaloids and their derivatives:
Hydralazine hydrochloride;
Sulfinpyrazone; and
Warfarin, sodium

Other

7t per lb.
+46%
ad val.
7t per lb.
+67.5%
ad val.

•

• • "

'

"

'

•

1.7* per lb.
+ 13%
ad val.
1.7« per lb.
+ 19.9%
ad val.

7* per lb.
+47%
ad val.
7» per lb.
+ 71.5%
ad val.

1.7« per lb.
+ 13.1%
ad val.
1.7* per lb.
+ 18%
ad val.

It per lb.
+47.5%
ad val.
7* per lb.
+65%
ad val.

1.7« per lb.
+14.3%
ad val.

7« per lb.
+51.5%
ad val.

Dermatological agents and local

Drugs primarily affecting the central
nervous system, except alkaloids and
their derivatives:
1

93 STAT. 233

PUBLIC LAW 96-39—JULY 26, 1979

412.18

412.22

412.26

412.30

412.34

412.38

412.42

412.48

412.52

Analgesics, antipyretics, and
nonhormonal anti-inflammatory
agents:
Propoxyphene hydrochloride

Other

AnticonvTilsants, hj-pnotics, and
sedatives

Antidepressants, tranquilizers, and
other psychotherapeutic agents:
Amitriptyline;
Butaperazine malcate;
Clozapine;
Droperidol;
Fluphenazine decanoate;
Fluphenazine enanthate;
Imipramine hydrochloride;
Mesoridazine besylate;
Piperacetazine;
Prochlorperazine maleate;
Promazine hydrochloride; and
Trifluoperazine hydrochlorid&.

Other..

Other.

Hormones, sjTithetic substitutes, and an
tagonists:
Desonide;
Dienestrol;
Epinephrine;
Epinephrine hydrochloride;
Estradiol benzoate;
Estradiol cyclopentylpropionate
(Estriadol cj'pionate);
Nandrolone phenpropionate; and
L-Thyroxine (Levothyroxine)
sodium
,

Other.

Vitamins, provitamins, and their analogs
and derivatives used primarily for
their vitamin activity:
Vitamin Bz (Biboflavin and its

1.7t per lb.
-1-33.3%
ad val.
1.7e per lb.
-t-13.3%
ad val.

7« per lb.
-f-119.5%
ad val.
7t per lb.
4-47.5%
ad val.

1.7« per lb.
-1-13.5%
ad val.

7* per lb.
-f48.5%
ad val.

1.7eperlb.
-1-12.6%
ad val.
1.7« per lb.
-t-41.5%
ad val.

7« per lb.
-1-45.5%
ad val.
7« per lb.
-H49.5%
ad val.

1.7t per lb.
4-16.3%
ad val.

7« per lb.
-1-58.5%
ad val.

1.7« per lb.
-1-13.6%
ad val.
1.70 per lb.
-1-21.7%
ad val.

7« per lb.
-1-49%
ad val.
7* per lb.
-1-78.5%
ad val.

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 234

salts and esten)^

412.56

412.60

412.64

412.68

'\ntainin Bia (Cyanocobalanun and
related compounds vith vitamin
Bia activity) .............................

Yitamin E (dl-a-TooopheroI and its
esters).~»~....».......~»..........»....

Other..

Other.

412.72

Drugs, from whatever source obtuned, produced or
manufactured:
Guaiacol and ite derivatives.......^...........^....^..

412.76

Aromatic or odoriferous compounds including flavors, not
marketable as cosmetics, perfumery, or toilet preparations, and not mixed, and not containing alcobol:
Obtained, derived, or manufactured in whole or in part
from any product provided for in subpart A or B of
this part:
p.Ani8a]dehyde....».....~~.~.~~............~........~..

412.80

Benzyl acetate..

412.84

Benzyl benzoate.

412.88

412.92

412.96

418.00

418.04

418.08

418.12

418.16

1.7<perlb.
+17.356
adval.

^^ per lb.
+62%
ad val.

1.7t per lb.
+40.4%
adval.

7t per lb.
+ 145.5%
adval.

1.7* per lb.
+ 17.6%
adval.
1.7t per lb.
+ 13.6%
adval.
1.7t per lb.
+ 13.6%
adval.

7t per lb.
+63.5%
adval.
7e per lb.
+49%
ad val.
?• per lb.
+45%
ad val.

1.7tperlb.
+21.9%
adval.

70 per lb.
+79%
ad val.

S.5t per lb.
+ 18.1%
adval.
3.5t per lb.
+52.1%
adval.
3M per lb.
+42.1%
adval.
3.5<i per lb.
+21.1%
adval.
3.5e per lb.
+40.1%
adval.
1.7« per lb.
+ 13.8%
adval.
3.5» per lb.
+ 11.2%
adval.
3.5( per lb.
+25.4%
adval.
2.8t per lb.
+ 11.4%
adval.
S.5« per lb.
+22.5%
adval.
8.5e per lb.
+20.2%
adval.

7t per lb.
+36%
ad val.
7* per lb.
+ 104.5%
ad val.
7t per lb.
+84%
ad val.
7< per lb.
+42.5%
adval.
7* per lb.
+ 80%
ad val.
7* per lb.
+56.5%
adval.
7t per lb.
+ 22.5%
adval.
7* per lb.
+51%
ad val.
7< per lb.
+57%
ad val.
7* per lb.
+45%
ad val.
7* per lb.
+40.5%
adval.

93 STAT. 235

PUBLIC LAW 96-39—JULY 26, 1979
413.20

Phenethyl alcohol..

413.24

Saccharin.~..~

413.28

Other.

413.32

From whatever source obtuned, derived, or manu&ctured:
Coumarin..............~..........~...................~.............

413.36

Methyl

413.40

Vanillin...........

413.50

413.51

.......—.....

.....

...—

Mixtures in whole or in part of any of the products provided
for in this subpart:
Paints and enamel punts, stuns, and varnishes.............

Other

.......

8.5«perlb.
+38.5%
adval.
l£f per lb.
+12.9%
adval.
8.5c per lb.
+29%
adval.

7c per lb.
+77%
ad val.
7< per lb.
+61%
ad vaL
7c per lb.
+58%
ad val.

8.5( per lb.
+24.1%
adval.
8.5e per lb.
+34.2%
adval.
1.5c per lb.
+ 10.2%
adval.

7c per lb.
+48%
ad val.
7c per lb.
+68.5%
adval.
7c per lb.
+48%
ad val.

S.5c per lb.
+23%
adval.
3.5c per lb.
+23%
adval.,
but not
less than
the
highest
rate
applicable
to any
component
material.

7c per lb.
+46%
ad val.
7c per lb.
+46%
ad val,
but not
less than
the
highest
rate
applicable
to any
component
material.

SEC. 224. TREATMENT OF CONVERTED RATES AS EXISTING RATES FOR
PURPOSES OF TRADE AGREEMENT AUTHORITY.

For purposes of sections 101 and 601(7) of the Trade Act of 1974 (19
U.S.C. 2111 and 2481(7)), the rates of duty appearing in rate column
numbered 1 of the amendments, if any, made under this subtitle shall
be considered to be the rates of duty existing or in effect on January 1,
1975.

19 u s e 2111
note.

SEC. 225. MODIFICATION OF TARIFF TREATMENT OF CERTAIN CHEML
CALS AND CHEMICAL PRODUCTa

The President may proclaim a modification of the article descriptions in subparts B and C of part 1 of schedule 4 (as amended by
section 223(d)) in order to transfer from any item within those
subparts to any other item within those subparts (taking into account
proper chemical nomenclature and customs classification principles)
any individual chemicals or products with respect to which a negotiating partner in the Tokyo Round of the Multilateral Trade Negotiations submitted notice, before July 31,1979, to the United States that
the rate of duty in such subpart for such chemicals or products that
would apply but for this section is, based on past import data for the
chemical or product, inappropriate and non-representative; but the
President may not make a modification under this section with
respect to any such chemical or product unless the United States
International Trade Commission determines before January 1,1980,
that—
a

0^.

19 u s e 1202
note.

a%*?"

93 STAT. 236

PUBLIC LAW 96-39—JULY 26, 1979
(1) the chemical or product was not valued for customs purposes on the basis of American selling price upon entry into the
United States during a period determined by the Commission to be
representative, and
(2) a rate of duty provided for in such subparts, other than the
rate of duty that would apply but for this section, is more
appropriate and representative for such chemical or product.
TITLE III—GOVERNMENT PROCUREMENT
SEC. 301. GENERAL AUTHORITY TO MODIFY DISCRIMINATORY PURCHASING REQUIREMENTS.

19 use 2511.

(a)

PRESIDENTIAL

WAIVER

OF

DISCRIMINATORY

PURCHASING

REQUIREMENTS.—The President may waive, in whole or in part, with
respect to eligible products of any foreign country or instrumentality
designated under subsection (b), and suppliers of such products, the
application of any law, regulation, procedure, or practice regarding
Government procurement that would, if applied to such products and
suppliers, result in treatment less favorable than that accorded—
(1) to United States products and suppliers of such products; or
(2) to eligible products of another foreign country or instrumentality which is a party to the Agreement and suppliers of
such products.
(b) DESIGNATION OF ELIGIBLE COUNTRIES AND INSTRUMENTALITIES.—

The President may designate a foreign country or instrumentality for
purposes of subsection (a) only if he determines that such country or
instrumentality—
(1) is a country or instrumentality which (A) has become a
party to the Agreement, and (B) will provide appropriate reciprocal competitive government procurement opportunities to
United States products and suppliers of such products;
(2) is a country or instrumentality, other than a major industrial country, which (A) will otherwise assume the obligations of
the Agreement, and (B) will provide such opportunities to such
products and suppliers;
(3) is a country or instrumentality, other than a major industrial country, which will provide such opportunities to such
products and suppliers; or
(4) is a least developed country.
(c) MODIFICATION OR WITHDRAWAL OF WAIVERS AND DESIGNA-

TIONS.—The President may modify or withdraw any waiver granted
pursuant to subsection (a) or designation made pursuant to subsection (b).
SEC. 302. AUTHORITY TO ENCOURAGE RECIPROCAL COMPETITIVE PROCUREMENT PRACTICES.
19 use 2512.

(a) AUTHORITY TO BAR PROCUREMENT FROM NON-DESIGNATED COUN-

TRIES.—With respect to procurement covered by the Agreement, the
President, in order to encourage additional countries to become
parties to the Agreement and to provide appropriate reciprocal
competitive government procurement opportunities to United States
products and suppliers of such products—
(1) shall prohibit the procurement, after the date on which any
waiver under section 301(a) first takes effect, of products (A)
which are products of a foreign country or instrumentality which
is not designated pursuant to section 301(b), and (B) which would
otherwise be eligible products; and
(2) may take such other actions within his authority as he
deems necessary.

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 237

(b) DEFERRALS AND WAIVERS.—Notwithstanding subsection (a), but
in furtherance of the objective of encouraging countries to become
parties to the Agreement and provide appropriate reciprocal competitive government procurement opportunities to United States products and suppliers of such products, the President may—
(1) delay, for a period not to exceed two years, the prohibition of
procurement, required pursuant to subsection (a)(1), of products
of a foreign country or instrumentality which is not designated
pursuant to section 301(b), except that no such delay shall be
granted with respect to the procurement of products of any major
industrial country;
(2) authorize agency heads to waive, subject to interagency
review and general policy guidance by the organization established under section 242(a) of the Trade Expansion Act of 1962 (19
U.S.C. 1872(a)), such prohibition on a case-by-case basis when in
the national interest; and
(3) authorize the Secretary of Defense to waive, subject to
interagency review and policy guidance by the organization
established under section 242(a) of the Trade Expansion Act of
1962 (19 U.S.C. 1872(a)), such prohibition for products of any
country or instrumentality which enters into a reciprocal procurement agreement with the Department of Defense.

i

(c) REPORT ON IMPACT OF RESTRICTIONS.—
(1) IMPACT ON THE ECONOMY.—On or before July 1, 1981, the

President shall report to the Committee on Ways and Means and
the Committee on Government Operations of the House of
Representatives and to the Committee on Finance and the
Committee on Governmental Affairs of the Senate on the effects
on the United States economy (including effects on employment,
production, competition, costs and prices, technological development, export trade, balance of payments, inflation, and the
Federal budget) of the refusal of developed countries to allow the
Agreement to cover the entities of the governments of such
countries which are the principal purchasers of goods and
equipment in appropriate product sectors.
(2)

RECOMMENDATIONS

FOR

ATTAINING

^^

RECIPROCITY.—The

report required by paragraph (1) shall include an evaluation of
alternative means to obtain equity and reciprocity in such
product sectors, including (A) prohibiting the procurement of
products of such countries by United States entities not covered
by the Agreement, and (B) modifying the application of title III of
the Act of March 3, 1933 (41 U.S.C. 10a et seq.), commonly
referred to as the Buy American Act. The report shall include an
analysis of the effect of such alternative means on the United
States economy (including effects on employment, production,
competition, costs and prices, technological development, export
trade, balance of payments, inflation, and the Federal budget),
and on successful negotiations on the expansion of the coverage
of the Agreement pursuant to section 304 (a) and (b), other trade
negotiating objectives, the relationship of the Federal Government to State and local governments, and such other factors as
the President deems appropriate.
(3) CONSULTATION.—In the preparation of the report required
by paragraph (1) and the evaluation and analysis required by
paragraph (2), the President shall consult with representatives of
the public, industry, and labor, and make available pertinent,
nonconfidential information obtained in the course of such

..,.

93 STAT. 238
19 use 2155.

PUBLIC LAW 96-39—JULY 26, 1979
preparation to the advisory committees established pursuant to
section 135 of the Trade Act of 1974.
(d) PROPOSED ACTION.—

(1) PRESIDENTIAL REPORT.—On or before October 1, 1981, the

President shall prepare and transmit to the congressional committees referred to in subsection (c)(1) a report which describes
the actions he deems appropriate to establish reciprocity with
major industrialized countries in the area of Government procurement.
(2) PROCEDURE.—

(A) PRESIDENTIAL DETERMINATION.—If the President deter-

19 use 2513.

19 use 2514.

mines that any changes in existing law or new statutory
authority are required to authorize or to implement any
action proposed in the report submitted under paragraph (1),
he shall, on or after January 1,1982, submit to the Congress
a bill to accomplish such changes or provide such new
statutory authority. Prior to submitting such a bill, the
President shall consult with the appropriate committees of
the Congress having jurisdiction over legislation involving
subject matters which would be affected by such action, and
shall submit to such committees a proposed draft of such bill.
(B) CONGRESSIONAL CONSIDERATION.—The appropriate
committee of each House of the Congress shall give a bill
submitted pursuant to subparagraph (A) prompt consideration and shall make its best efforts to take final committee
action on such bill in an expeditious manner.
SEC. 303. WAIVER OF DISCRIMINATORY PURCHASING REQUIREMENTS
WITH RESPECT TO PURCHASES OF CIVIL AIRCRAFT.
The President may waive the application of the provisions of title
III of the Act of March 3, 1933 (41 U.S.C. 10a et seq.), popularly
referred to as the Buy American Act, in the case of any procurement
of civil aircraft and related articles of a country or instrumentality
which is a party to the Agreement on Trade in Civil Aircraft. The
President may modify or withdraw any waiver granted pursuant to
this section.
SEC. 304. EXPANSION OF THE COVERAGE OF THE AGREEMENT.
(a) OVERALL NEGOTIATING OBJECTIVE.—The President shall seek in
the renegotiations provided for in part IX, paragraph 6, of the
Agreement more open and equitable market access abroad, and the
harmonization, reduction, or elimination of devices which distort
trade or commerce related to Government procurement, with the
overall goal of maximizing the economic benefit to the United States
through maintaining and enlarging foreign markets for products of
United States agriculture, industry, mining, and commerce, the
development of fair and equitable market opportunities, and open
and nondiscriminatory world trade. In carrying out the provisions of
this subsection, the President shall consider the assessment made in
the report required under section 306(a).
(b) SECTOR NEGOTIATING OBJECTIVES.—The President shall seek,
consistent with the overall objective set forth in subsection (a) and to
the maximum extent feasible, with respect to appropriate product
sectors, competitive opportunities for the export of United States
products to the developed countries of the world equivalent to the
competitive opportunities afforded by the United States, taking into
account all barriers to, and other distortions of, international trade
affecting that sector.

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 239

(c) INDEPENDENT VERIFICATION OBJECTIVE.—The President shall
seek to establish in the renegotiation provided for in part IX,
paragraph 6, of the Agreement a system for independent verification
of information provided by parties to the Agreement to the Committee on Government Procurement pursuant to part VI, paragraph 9, of
the Agreement.
(d) REPORTS ON NEGOTIATIONS.—
(1) REPORT IN THE EVENT OF INADEQUATE PROGRESS.—If, during

the renegotiations of the Agreement, the President at any time
determines that the renegotiations are not progressing satisfactorily and are not likely to result, within twelve months of the
commencement thereof, in an expansion of the Agreement to
cover purchases by the entities of the governments of developed
countries which are the principal purchasers of goods and
equipment in appropriate product sectors, he shall so report to
the congressional committees referred to in section 302(c)(1).
Taking into account the objectives set forth in subsections (a) and
(b) of this section and the factors required to be analyzed under
section 302(c), the President shall further report to such committees appropriate actions to seek reciprocity in such product
sectors with such countries in the area of government procurement.
(2) LEGISLATIVE RECOMMENDATIONS.—Taking into account the
factors required to be analyzed under section 302(c), the President may recommend to the Congress legislation (with respect to
entities of the Government which are not covered by the Agreement) which may prohibit such entities from purchasing products of such countries.
(3) ANNUAL REPORTS.—Each annual report of the President
under section 163(a) of the Trade Act of 1974 made after the date 19 USC 2213.
of enactment of this Act shall report the actions, if any, the
President deemed appropriate to establish reciprocity in appropriate product sectors with major industrial countries in the area
of government procurement.
(e)

EXTENSION OF NONDISCRIMINATION AND NATIONAL TREAT-

MENT.—Before exercising the waiver authority in section 301 for
procurement not covered by the Agreement on the date of enactment
of this Act, the President shall follow the consultation provisions of
section 135 and chapter 6 of title I of the Trade Act of 1974 for private 19 USC 2155,
sector and congressional consultations.
2211.
SEC. 305. MONITORING AND ENFORCEMENT.
(a)

MONITORING AND ENFORCEMENT STRUCTURE RECOMMENDA- 19 USC 2515.

TiONS.—In the preparation of the recommendations for the reorganization of trade functions, the President shall ensure that careful
consideration is given to monitoring and enforcing the requirements
of the Agreement and this title, with particular regard to the
tendering procedures required by the Agreement or otherwise agreed
to by a country or instrumentality likely to be designated pursuant to
section 301(b).
(b) RULES OF ORIGIN.—
(1) ADVISORY RUUNGS AND FINAL DETERMINATIONS.—For the

purposes of this title, the Secretary of the Treasury shall provide
for the prompt issuance of advisory rulings and final determinations on whether, under section 308(4)(B), an article is or would
be a product of a foreign country or instrumentality designated
pursuant to section 3010)).

" '

93 STAT. 240

18 use 1001.

PUBLIC LAW 96-39—JULY 26, 1979
(2) PENALTIES FOR FRAUDULENT CONDUCT.—In addition to any
other provisions of law which may be appUcable, section 1001 of
title 18, United States Code, shall apply to fraudulent conduct
with respect to the origin of products for purposes of qualifying
for a waiver under section 301 or avoiding a prohibition under
section 302.
(c) REPORT TO CONGRESS ON RULES OF ORIGIN.—
(1) DOMESTIC ADMINISTRATIVE PRACTICES.—As

soon as practicable after the close of the two-year period beginning on the date on
which any waiver under section 301(a) first takes effect, the
President shall prepare and transmit to Congress a report
containing an evaluation of administrative practices under any
provision of law which requires determinations to be made of the
country of origin of goods, products, commodities, or other
articles of commerce. Such evaluation shall be accompanied by
the President's recommendations for legislative and executive
measures required to improve and simplify and to make more
uniform and consistent such practices. Such evaluation and
recommendations shall take into account the special problems
affecting insular possessions of the United States with respect to
such practices.
(2) FOREIGN ADMINISTRATIVE PRACTICES.—The report required
under paragraph (1) shall contain an evaluation of the administrative practices under the laws of each major industrial country
which require determinations to be made of the country of origin
of goods, products, commodities, or other articles of commerce,
including an assessment of such practices on the exports of the
United States.
SEC. 306. LABOR SURPLUS AREA STUDIES.
19 u s e 2516.

Report to
President.

3 CFR Comp.,
P'

19 use 2517.

(a) EFFECT ON THE ECONOMY.—Prior to the renegotiations provided

for in part IX, paragraph 6, of the Agreement, the President shall
prepare and transmit to the Congress a report which assesses the
economic impact, including the impact on employment in various
regions of the United States, of the waiver of the provisions of title III
of the Act of March 3,1933 (41 U.S.C. 10a et seq.), commonly referred
to as the Buy American Act, in the procurement of products produced
in labor surplus areas and of the waiver of procurement set-asides for
labor surplus areas.
(b) EFFECT ON TARGETS.—On or before July 1, 1981, the President
shall prepare and transmit to the Congress a report which assesses
the effect of the waiver of the provisions of such title III in the
procurement of products produced in labor surplus areas and the
waiver of procurement set-asides for labor surplus areas on the
fulfillment of the objectives of Executive Order 12073, issued August
16, 1978, relating to the encouragement of procurement in labor
surplus areas, including an assessment of such waiver on the procurement targets set by the Administrator of the General Services
Administration pursuant to such Executive order. On or before
January 1, 1980, the President shall begin consultation with and
provide interim reports to the congressional committees referred to
in section 302(cXl) concerning the report required by the preceding
sentence.
SEC. 307. AVAILABILITY OF INFORMATION TO CONGRESSIONAL ADVISERS.
The Special Representative for Trade Negotiations shall make
available to the Members of Congress designated as official advisers

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 241

pursuant to section 161 of the Trade Act of 1974 information compiled i9 use 2211.
by the Committee on Government Procurement under part VI,
paragraph 9, of the Agreement.
SEC. 308. DEFINITIONS.
As used in this title—
19 use 2518.
(1) AGREEMENT.—The term "Agreement" means the Agreement on Government Procurement referred to in section 2(c) of
this Act, as submitted to the Congress, but including rectifications, modifications, and amendments which are accepted by the
United States.
... „
(2) CIVIL AIRCRAFT.—The term "civil aircraft and related arti' ' *^
cles" means—
(A) all aircraft other than aircraft to be purchased for use
by the Department of Defense or the United States Coast
Guard;
(B) the engines (and parts and components for incorporation therein) of such aircraft;
(C) any other parts, components, and subassemblies for
incorporation in such aircraft; and
(D) any ground flight simulators, and parts and components thereof, for use with respect to such aircraft,
whether to be purchased for use as original or replacement
equipment in the manufacture, repair, maintenance, rebuilding,
modification, or conversion of such aircraft, and without regard
to whether such aircraft or articles receive duty-free treatment
pursuant to section 601(a)(2).
Post, p. 267.
(3) DEVELOPED COUNTRIES.—The term "developed countries"
means countries so designated by the President.
(4) ELIGIBLE PRODUCTS.—

(A) IN GENERAL.—The term "eligible product" means, with
respect to any foreign country or instrumentality, a product
or service of that country or instrumentality which is covered under the Agreement for procurement by the United
States.
(B) RULE OF ORIGIN.—An article is a product ofa country or
-i; >i instrumentality only if (i) it is wholly the growth, product, or
manufacture of that country or instrumentality, or (ii) in the
case of an article which consists in whole or in part of
1,1
materials from another country or instrumentality, it has
been substantially transformed into a new and different
Ic ^ article of commerce with a name, character, or use distinct
from that of the article or articles from which it was so
transformed.
(5) INSTRUMENTALITY.—The term "instrumentality" shall not
be construed to include an agency or division of the government
ofa country, but may be construed to include such arrangements
as the European Economic Community.
(6) LEAST DEVELOPED COUNTRY.—The term "least developed
country" means any country on the United Nations General
Assembly list of least developed countries.
(7) MAJOR INDUSTRIAL COUNTRY.—The term "major industrial
country" means any such country as defined in section 126 of the
Trade Act of 1974 and any instrumentality of such a country. 19 use 2136.
SEC. 309. EFFECTIVE DATES.
The provisions of this title shall be effective on the date of 19 use 2511
enactment of this Act, except that—
note.

59-194 O — 81

18 : QL3

93 STAT. 242

PUBLIC LAW 96-39—JULY 26, 1979

,f,«

(1) the authority of the President to grant waivers under
section 303 shall be effective on January 1,1980; and
(2) the authority of the President to grant waivers under
section 301 shall be effective on January 1,1981.
TITLE IV—TECHNICAL BARRIERS TO TRADE (STANDARDS)
Subtitle A—Obligations of the United States

19 use 2531.

19 use 2532.

SEC. 401. CERTAIN STANDARDS-RELATED ACTIVITIES.
Nothing in this title may be construed as prohibiting any private
person, Federal agency, or State agency from engaging in standardsrelated activities that do not create unnecessary obstacles to the
foreign commerce of the United States. No standards-related activity
of any private person, Federal agency, or State agency shall be
deemed to constitute an unnecessary obstacle to the foreign commerce of the United States if the demonstrable purpose of the
standards-related activity is to achieve a legitimate domestic objective including, but not limited to, the protection of legitimate health
or safety, essential security, environmental, or consumer interests
and if such activity does not operate to exclude imported products
which fully meet the objectives of such activity.
SEC. 402. FEDERAL STANDARDS-RELATED ACTIVITIES.
No Federal agency may engage in any standards-related activity
that creates unnecessary obstacles to the foreign commerce of the
United States, including, but not limited to, standards-related activities that violate any of the following requirements:
(1) NONDISCRIMINATORY TREATMENT.—Each Federal agency

shall ensure, in applying standards-related activities with respect to any imported product, that such product is treated no
less favorably than are like domestic or imported products,
including, but not limited to, when applying tests or test methods, no less favorable treatment with respect to—
(A) the acceptance of the product for testing in comparable
situations;
(B) the administration of the tests in comparable situations;
(C) the fees charged for tests;
(D) the release of test results to the exporter, importer, or
agents;
(E) the siting of testing facilities and the selection of
samples for testing; and
(F) the treatment of confidential information pertaining to
the product.
(2) USE OF INTERNATIONAL STANDARDS.—

(A) I N GENERAL.—Except as provided in subparagraph
(B)(ii), each Federal agency, in developing standards, shall
take into consideration international standards and shall, if
appropriate, base the standards on international standards.
(B) APPLICATION OF REQUIREMENT.—For purposes of this
paragraph, the following apply:
(i) INTERNATIONAL STANDARDS NOT APPROPRIATE.—The

..

reasons for which the basing of a standard on an
international standard may not be appropriate include,
but are not limited to, the following:
(I) National security requirements.

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 243

(II) The prevention of deceptive practices.
(III) The protection of human health or safety,
animal or plant life or health, or the environment.
(IV) Fundamental climatic or other geographical
factors.
(V) Fundamental technological problems.
(ii) REGIONAL STANDARDS.—In developing standards, a
Federal agency may, but is not required to, take into
consideration any international standard promulgated
by an international standards organization the membership of which is described in section 451(6XA)(ii).
(3) PERFORMANCE CRITERIA.—Each Federal agency shall, if
appropriate, develop standards based on performance criteria,
such as those relating to the intended use of a product and the
level of performance that the product must achieve under
defined conditions, rather than on design criteria, such as those
relating to the physical form of the product or the types of
material of which the product is made.
(4) CERTIFICATION ACCESS FOR FOREIGN SUPPUERS.—Each Federal agency shall, with respect to any certification system used
by it, permit access for obtaining certification under that system
to foreign suppliers of a product on the same basis as access is
permitted to suppliers of like products, whether of domestic or
other foreign origin.
SEC. 403. STATE AND PRIVATE STANDARDS-RELATED ACTIVITIES.

(a) I N GENERAL.—It is the sense of the Congress that no State 19 USC 2533.
agency and no private person should engage in any standards-related
activity that creates unnecessary obstacles to the foreign commerce
of the United States.
(b) PRESIDENTIAL ACTION.—The President shall take such reasonable measures as may be available to promote the observance by
State agencies and private persons, in carrying out standards-related
activities, of requirements equivalent to those imposed on Federal
agencies under section 402, and of procedures that provide for
notification, participation, and publication with respect to such
activities.
Subtitle B—Functions of Federal Agencies
SEC. 411. FUNCTIONS OF SPECIAL REPRESENTATIVE.

(a) IN GENERAL.—The Special Representative shall coordinate the 19 use 2541.
consideration of international trade policy issues that arise as a
result of, and shall develop international trade policy as it relates to,
the implementation of this title.
(b) NEGOTIATING FUNCTIONS.—The Special Representative has re-

sponsibility for coordinating United States discussions and negotiations with foreign countries for the purpose of establishing mutual
arrangements with respect to standards-related activities. In carrying out this responsibility, the Special Representative shall inform
and consult with any Federal agency having expertise in the matters
under discussion and negotiation.
(c) CROSS REFERENCE.—

93 STAT. 244

PUBLIC LAW 96-39—JULY 26, 1979
For provisions of law regarding general authority of the Special Representatives with respect to trade agreements, see section 141 of the Trade
Actof 1974 (19 U.S.C. 2171).
SEC. 412. ESTABLISHMENT AND OPERATION OF TECHNICAL OFFICES.

19 u s e 2542.

(a) ESTABLISHMENT.—
(1) FOR NONAGRICULTURAL PRODUCTS.—The

Secretary of Commerce shall establish and maintain within the Department of
Commerce a technical office that shall carry out the functions
prescribed under subsection (b) with respect to nonagricultural
products.
(2) FOR AGRICULTURAL PRODUCTS.—The Secretary of Agricul-

19 use 2543.

ture shall establish and maintain within the Department of
Agriculture a technical office that shall carry out the functions
prescribed under subsection (b) with respect to agricultural
products.
(b) FUNCTIONS OF OFFICES.—The President shall prescribe for each
technical office established under subsection (a) such functions as the
President deems necessary or appropriate to implement this title.
SEC. 413. REPRESENTATION OF UNITED STATES INTERESTS BEFORE INTERNATIONAL STANDARDS ORGANIZATIONS.
(a) OVERSIGHT AND CONSULTATION.—The Secretary concerned
shall—
(1) inform, and consult and coordinate with, the Special Representative with respect to international standards-related activities identified under paragraph (2);
(2) keep adequately informed regarding international standards-related activities and identify those that may substantially
affect the commerce of the United States; and
(3) carry out such functions as are required under subsections
(b) and (c).
(b) REPRESENTATION OF UNITED STATES INTERESTS BY PRIVATE PERSONS.—

(1) DEFINITIONS.—For purposes of this subsection—
(A) ORGANIZATION MEMBER.—The term "organization
member" means the private person who holds membership
in a private international standards organization.
(B) PRIVATE INTERNATIONAL STANDARDS ORGANIZATION.—

The term "private international standards organization"
means any international standards organization before
which the interests of the United States are represented by a
private person who is officially recognized by that organization for such purpose.
(2) I N GENERAL.—Except as otherwise provided for in this
subsection, the representation of United States interests before
any private international standards organization shall be carried
out by the organization member.
(3) INADEQUATE REPRESENTATION.—If the Secretary concerned,
after inquiry instituted on his own motion or at the request of
any private person, Federal agency, or State agency having an
interest therein, has reason to believe that the participation by
the organization member in the proceedings of a private international standards organization will not result in the adequate
representation of United States interests that are, or may be,
affected by the activities of such organization (particularly with
regard to the potential impact of any such activity on the
international trade of the United States), the Secretary concerned shall immediately notify the organization member con-

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 245

cerned. During any such inquiry, the Secretary concerned may
sohcit and consider the advice of the appropriate representatives
referred to in section 417.
(4) ACTION BY ORGANIZATION MEMBER.—If within the 90-day

period after the date on which notification is received under
paragraph (3) (or such shorter period as the Secretary concerned
determines to be necessary in extraordinary circumstances), the
organization member demonstrates to the Secretary concerned
its willingness and ability to represent adequately United States
interests before the private international standards organization, the Secretary concerned shall take no further action under
this subsection.
(5) ACTION BY SECRETARY CONCERNED.—If—

(A) within the appropriate period referred to in paragraph
(4), the organization member does not respond to the Secretary concerned with respect to the notification, or does
respond but does not demonstrate to the Secretary concerned the requisite willingness and ability to represent
adequately United States interests; or
(B) there is no organization member of the private international standards organization;
the Secretary concerned shall make appropriate arrangements
to provide for the adequate representation of United States
interests. In cases where subparagraph (A) applies, such provision shall be made by the Secretary concerned through the
appropriate organization member if the private international
standards organization involved requires representation by that
member.
(c) REPRESENTATION OF UNITED STATES INTERESTS BY FEDERAL AGEN-

CIES.—With respect to any international standards organization
before which the interests of the United States are represented by
one or more Federal agencies that are officially recognized by that
organization for such purpose, the Secretary concerned shall—
(1) encourage cooperation among interested Federal agencies
with a view toward facilitating the development of a uniform
position with respect to the technical activities with which the
organization is concerned;
(2) encourage such Federal agencies to seek information from,
and to cooperate with, the affected domestic interests when
undertaking such representation; and
(3) not preempt the responsibilities of any Federal agency that
has jurisdiction with respect to the activities undertaken by such
organization, unless requested to do so by such agency.
SEC. 414. STANDARDS INFORMATION CENTER.

(a) ESTABLISHMENT.—The Secretary of Commerce shall maintain 19 USC 2544.
within the Department of Commerce a standards information center.
(b) FUNCTIONS.—The standards information center shall—
(1) serve as the central national collection facility for information relating to standards, certification systems, and standardsrelated activities, whether such standards, systems, or activities
are public or private, domestic or foreign, or international,
regional, national, or local;
(2) make available to the public at such reasonable fee as the
Secretary shall prescribe, copies of information required to be
collected under paragraph (1) other than information to which
paragraph (3) applies;

93 STAT. 246

PUBLIC LAW 96-39—JULY 26, 1979
(3) use its best efforts to make available to the public, at such
reasonable fees as the Secretary shall prescribe, copies of information required to be collected under paragraph (1) that is of
private origin, on a cooperative basis with the private individual
or entity, foreign or domestic, who holds the copyright on the
information;
(4) in case of such information that is of foreign origin, provide,
at such reasonable fee as the Secretary shall prescribe, such
translation services as may be necessary;
(5) serve as the inquiry point for requests for information
regarding standards-related activities, whether adopted or proposed, within the United States, except that in carrying out this
paragraph, the Secretary of Commerce shall refer all inquiries
regarding agricultural products to the technical office established under section 412(a)(2) within the Department of Agriculture; and
(6) provide such other services as may be appropriate, including but not limited to, such services to the technical offices
established under section 412 as may be requested by those
offices in carrying out their functions.
SEC. 415. CONTRACTS AND GRANTS.

19 use 2545.

(a) I N GENERAL.—For purposes of carrying out this title, and
otherwise encouraging compliance with the Agreement, the Special
Representative and the Secretary concerned may each, with respect
to functions for which responsible under this title, make grants to, or
enter into contracts with, any other Federal agency, any State
agency, or any private person, to assist such agency or person to
implement appropriate programs and activities, including, but not
limited to, programs and activities—
(1) to increase awareness of proposed and adopted standardsrelated activities;
(2) to facilitate international trade through the appropriate
international and domestic standards-related activities;
(3) to provide, if appropriate, and pursuant to section 413,
adequate United States representation in international standards-related activities; and
(4) to encourage United States exports through increased
awareness of foreign standards-related activities that may affect
United States exports.
No contract entered into under this section shall be effective except
to such extent, and in such amount, as is provided in advance in
appropriation Acts.
(b) TERMS AND CONDITIONS.—Any contract entered into, or any

grant made, under subsection (a) shall be subject to such terms and
conditions as the Special Representative or Secretary concerned shall
by regulation prescribe as being necessary or appropriate to protect
the interests of the United States.
(c) LIMITATIONS.—Financial assistance extended under this section
shall not exceed 75 percent of the total costs (as established by the
Special Representative or Secretary concerned, as the case may be) of
the program or activity for which assistance is made available. The
non-Federal share of such costs shall be made in cash or kind,
consistent with the maintenance of the program or activity concerned.
(d) AUDIT.—Each recipient of a grant or contract under this section
shall make available to the Special Representative or the Secretary
concerned, as the case may be, and to the Comptroller General of the

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 247

United States, for purposes of audit and examination, any book,
document, paper, a n d record t h a t is p e r t i n e n t to t h e funds received
u n d e r such g r a n t or contract.
SEC. 416. TECHNICAL ASSISTANCE.
T h e Special Representative a n d t h e Secretary concerned m a y each, 19 USC 2546.
with respect to functions for which responsible u n d e r this title, m a k e
available, on a reimbursable basis or otherwise, to any other Federal
agency, S t a t e agency, or private person such assistance, including,
b u t not limited to, employees, services, and facilities, as m a y be
a p p r o p r i a t e to assist such agency or person in carrying out s t a n d a r d s related activities in a m a n n e r consistent with this title.
SEC. 417. CONSULTATIONS WITH REPRESENTATIVES OF DOMESTIC IN^ '
TERESTS.
In carrying out t h e functions for which responsible u n d e r this title, 19 USC 2547.
t h e Special Representative and t h e Secretary concerned shall solicit
technical a n d policy advice from t h e committees, established u n d e r
section 135 of t h e T r a d e Act of 1974 (19 U.S.C. 2155), t h a t r e p r e s e n t
t h e interests concerned, a n d m a y solicit advice from a p p r o p r i a t e
S t a t e agencies a n d p r i v a t e persons.
Subtitle C—Administrative a n d J u d i c i a l P r o c e e d i n g s
S t a n d a r d s - R e l a t e d Activities

Regarding

CHAPTER 1—REPRESENTATIONS ALLEGING UNITED
STATES V I O L A T I O N S O F O B L I G A T I O N S
SEC. 421. RIGHT OF ACTION UNDER THIS CHAPTER.
Except as provided u n d e r t h i s chapter, t h e provisions of this 19 USC 2551.
subtitle do not create a n y right of action u n d e r t h e laws of t h e U n i t e d
States with respect to allegations t h a t a n y standards-related activity
engaged in within t h e United States violates t h e obligations of t h e
United States u n d e r t h e A g r e e m e n t .
SEC. 422. REPRESENTATIONS.
Any—
19 USC 2552.
(1) P a r t y to t h e Agreement; or
(2) foreign country t h a t is not a P a r t y to t h e A g r e e m e n t b u t is
found by t h e Special R e p r e s e n t a t i v e to extend rights a n d privileges to t h e United States t h a t a r e substantially t h e s a m e as
those t h a t would be so extended if t h a t foreign country were a
P a r t y to t h e A g r e e m e n t ;
m a y m a k e a r e p r e s e n t a t i o n to t h e Special Representative alleging
t h a t a standards-related activity engaged in within t h e United States
violates t h e obligations of t h e U n i t e d S t a t e s u n d e r t h e A g r e e m e n t .
Any such r e p r e s e n t a t i o n m u s t be m a d e in accordance with proced u r e s t h a t t h e Special Representative shall by regulation prescribe
a n d m u s t provide a reasonable indication t h a t t h e standards-related
activity concerned is h a v i n g a significant t r a d e effect. No person
o t h e r t h a n a P a r t y to t h e A g r e e m e n t or a foreign country described in
p a r a g r a p h (2) m a y m a k e such a r e p r e s e n t a t i o n .
SEC. 423. ACTION AFTER RECEIPT OF REPRESENTATIONS.
(a) R E V I E W . — U p o n receipt of a n y r e p r e s e n t a t i o n m a d e u n d e r
section 422, t h e Special Representative shall review t h e issues concerned in consultation with—

19 USC 2553.

93 STAT. 248

PUBLIC LAW 96-39—JULY 26, 1979
(1) the agency or person alleged to be engaging in violations
under the Agreement;
(2) the member agencies of the interagency trade organization
established under section 242(a) of the Trade Expansion Act of
1962 (19 U.S.C. 1872(a));
(3) other appropriate Federal agencies; and
(4) appropriate representatives referred to in section 417.
(b) RESOLUTION.—The Special Representative shall undertake to
resolve, on a mutually satisfactory basis, the issues set forth in the
representation through consultation with the parties concerned.
SEC. 424. PROCEDURE AFTER FINDING BY INTERNATIONAL FORUM.

19 use 2554.

(a) IN GENERAL.—If an appropriate international forum finds that a
standards-related activity being engaged in within the United States
conflicts with the obligations of the United States under the Agreement, the interagency trade organization established under section
242(a) of the Trade Expansion Act of 1962 (19 U.S.C. 1872(a)) shall
review the finding and the matters related thereto with a view to
recommending appropriate action,
(b) CROSS REFERENCE.—
For provisions of law regarding remedies available to domestic persons
alleging that standards activities engaged in by Parties to the Agreement
(other than the United States) violate the obligations of the Agreement,
see section 301 of the Trade Act of 1974 (19 U.S.C. 2411).

CHAPTER 2—OTHER PROCEEDINGS REGARDING CERTAIN
STANDARDS-RELATED ACTIVITIES
SEC. 441. FINDINGS OF RECIPROCITY REQUIRED IN ADMINISTRATIVE
PROCEEDINGS.

19 use 2561.

19 use 2562.

(a) IN GENERAL.—Except as provided under chapter 1, no Federal
agency may consider a complaint or petition against any standardsrelated activity regarding an imported product, if that activity is
engaged in within the United States and is covered by the Agreement, unless the Special Representative finds, and informs the
agency concerned in writing, that—
(1) the country of origin of the imported product is a Party to
the Agreement or a foreign country described in section 422(2);
and
(2) the dispute settlement procedures provided under the
Agreement are not appropriate.
(b) EXEMPTIONS.—This section does not apply with respect to causes
of action arising under—
(1) the antitrust laws as defined in subsection (a) of the first
section of the Clayton Act (15 U.S.C. 12(a)); or
(2) statutes administered by the Secretary of Agriculture.
This section does not apply with respect to petitions and proceedings
that are provided for under the practices of any Federal agency for
the purpose of ensuring, in accordance with section 553 of title 5,
United States Code, that interested persons are given an opportunity
to participate in agency rulemaking or to seek the issuance, amendment, or repeal of a rule.
SEC. 442. NOT CAUSE FOR STAY IN CERTAIN CIRCUMSTANCES.
No standards-related activity being engaged in within the United
States may be stayed in any judicial or administrative proceeding on
the basis that such activity is currently being considered, pursuant to
the Agreement, by an international forum.
.
,.

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 249

Subtitle D—Definitions and Miscellaneous Provisions
SEC. 451. DEFINITIONS.
As used in this title—
19 USC 2571.
(1) AGREEMENT.—The term "Agreement" means the Agreement on Technical Barriers to Trade approved under section 2(a)
of this Act.
(2) CERTIFICATION SYSTEM.—The term "certification system"
means a system—
(A) for determining whether a product conforms with
product standards applicable to that product; and
(B) if a product so conforms, for attesting, by means of a
document, mark, or other appropriate evidence of conformity, to that conformity.
Such term also includes any modification of, or change to, any
such system.
(3) FEDERAL AGENCY.—The term "Federal agency" means any
of the following within the meaning of chapter 2 of part I of title
5, United States Code:
(A) Any executive department.
(B) Any military department.
(C) Any Government corporation.
(D) Any Government-controlled corporation.
(E) Any independent establishment.
(4) INTERNATIONAL CERTIFICATION SYSTEM.—The term "international certification system" means a certification system that is
adopted by an international standards organization.
(5) INTERNATIONAL STANDARD,—The term "international standard" means any standard that is promulgated by an international standards organization.
(6) INTERNATIONAL STANDARDS ORGANIZATION.—The term "international standards organization" means any organization—
(A) the membership of which is open to representatives,
whether public or private, of the United States and—
(i) all Parties to the Agreement, or
(ii) some but not all Parties of the Agreement; and
(B) that is engaged in international standards-related
activities.
(7) INTERNATIONAL STANDARDS-RELATED ACTIVITY.—The term
"international standards-related activity" means the negotiation, development, or promulgation of, or any amendment or
change to, an international standard, or an international certification system, or both.
(8) PARTY TO THE AGREEMENT.—The term "Party to the Agreement" means any foreign country or instrumentality determined
by the President to have assumed, and to be applying, the
obligations of the Agreement with respect to the United States.
(9) PRIVATE PERSON.—The term "private person" means—
(A) any individual who is a citizen or national of the
United States; and
(B) any corporation, partnership, association, or other
legal entity organized or existing under the law of any State,
whether for profit or not for profit.
(10) PRODUCT.—The term "product" means any natural or
manufactured item.
(11) SECRETARY CONCERNED.—The term "Secretary concerned"
means the Secretary of Commerce with respect to functions
under this title relating to nonagricultural products, and the

93 STAT. 250

19 use 2572.

19 use 2573.

19 use 2531
"°^-

PUBLIC LAW 96-39—JULY 26, 1979
Secretary of Agriculture with respect to functions under this
title relating to agricultural products.
(12) SPECIAL REPRESENTATIVE.—The term "Special Representative" means the Special Representative for Trade Negotiations.
(13) STANDARD,—The term "standard" means any of the following, and any amendment or change to any of the following:
(A) The specification of the characteristics of a product,
including, but not limited to, levels of quality, performance,
safety, or dimensions.
(B) Specifications relating to the terminology, symbols,
testing and test methods, packaging, or marking or labeling
requirements applicable to a product.
(C) Administrative procedures related to the application of
any specification referred to in paragraph (A) or (B).
(14) STANDARDS-RELATED ACTIVITY.—The term "standards-related activity" means the development, adoption, or application
of any standard or any certification system.
(15) STATE.—The term "State" means any of the several States,
the District of Columbia, the Commonwealth of Puerto Rico, the
Virgin Islands, American Samoa, Guam and any other Commonwealth, territory, or possession of the United States.
(16) STATE AGENCY.—The term "State agency" means any
department, agency, or other instrumentality of the government
of any State or of any political subdivision of any State.
(17) UNITED STATES.—The term "United States", when used in
a geographical context, means all States.
SEC. 452. EXEMPTIONS UNDER TITLE.
This title does not appy to—
(1) any standards activity engaged in by any Federal agency or
State agency for the use (including, but not limited to, use with
respect to research and development, production, or consumption) of that agency or the use of another such agency; or
(2) any standards activity engaged in by any private person
solely for use in the production or consumption of products by
that person.
SEC. 453. REPORTS TO CONGRESS ON OPERATION OF AGREEMENT.
As soon as practicable after the close of the 3-year period beginning
on the date on which this title takes effect, and as soon as practicable
after the close of each succeeding 3-year period, the Special Representative shall prepare and submit to Congress a report containing
an evaluation of the operation of the Agreement, both domestically
and internationally, during the period.
SEC. 454. EFFECTIVE DATE.
This title shall take effect on January 1, 1980, if the Agreement
enters into force with respect to the United States by that date.
TITLE V—IMPLEMENTATION OF CERTAIN TARIFF
NEGOTIATIONS
SEC. 501. AMENDMENT OF TARIFF SCHEDULES.

Whenever in this title an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a schedule or other provision,
the reference shall be considered to be made to a schedule or other
provision of the Tariff Schedules of the United States (19 U.S.C. 1202).

PUBLIC LAW 96-39—JULY 26, 1979
SEC. 502. EFFECTIVE DATES OF CERTAIN TARIFF REDUCTIONS.
(a) GENERAL.—If the President determines that appropriate concessions have been received from foreign countries under trade agreements entered into before January 8, 1980, under title I of the Trade
Act of 1974, then the amendments to the Tariff Schedules of the
United States under sections 505, 506, 508, 509, 510, 511, 512, and 513
shall be effective with respect to articles entered, or withdrawn from
warehouse, for consumption on or after the date proclaimed by the
President.

93 STAT. 251
19 use 1202
^°^19 USC 2111.
19 USC 1202.

(b) TERMINATION OR WITHDRAWAL.—For purposes of section 125 (19 19 USC 2135

U.S.C. 2135) of the Trade Act of 1974 the amendments made under ^°'*sections 508, 511, 512, and 513 not including the rates of duty
appearing in rate column numbered 2, if any, shall be considered to
be trade agreement obligations entered into under the Trade Act of
1974, of benefit to foreign countries or instrumentalities.
i^ USC 2101.
(c) TARIFF REDUCTIONS.—For purposes of sections 101 and 601(7) of 19 USC 2iii
the Trade Act of 1974 (19 U.S.C. 2111, 2481), the rates of duty in the ''°^rate column numbered 1 or 2 as the result of the amendments, if any,
made under sections 505, 506, 509, 510, 511, and 514 shall be
considered to be the rates of duty existing or in effect on January 1,
1975.
SEC. 503. STAGING OF CERTAIN TARIFF REDUCTIONS.
(a) IN GENERAL.—The aggregate reduction in the rate of duty 19 USC 2119
applicable to items described in this subsection in effect on any day "
pursuant to a trade agreement entered into under section 101 of the
Trade Act of 1974 before January 3, 1980, may exceed the limitation 19 USC 2111.
in section 109(a) of such Act (19 U.S.C. 2119):
(1) Items amended under section 223(d) of this Act to the extent
that they apply to articles which the President determines were
not imported into the United States before January 1, 1978, and
were not produced in the United States before May 1, 1978.
(2)(A) Items to the extent that they apply to articles which the
President determines are not import sensitive and are the
product of a least developed developing country as defined in the
United Nations General Assembly list of "Least Developed
Countries" and which are beneficiary developing countries
under section 502 of the Trade Act of 1974.
19 USC 2462.
(B) The President may at any time suspend the treatment
accorded under subparagraph (A) in which case the aggregate
reduction in effect for such products shall be the reduction in
. - ' -•
effect for countries other than least developed developing countries.
(3) Item 628.57. Notwithstanding the first sentence of this
subsection, the limitation in section 109(a) of the Trade Act of 19 USC 2119.
1974 may be exceeded only to the extent necessary to permit an
aggregate reduction of 4.8 percent ad valorem in the rate of duty
in effect under such item during the first 1-year period after the
effective date of the first reduction in the rate of duty proclaimed
for such item.
(4) Items 132.50, 170.10, 170.15, 170.20, 177.62, 186.15, and
429.47.
(5) Items 306.31, 306.32, 306.33, and 306.34. Notwithstanding
subsection (a), the limitation in section 109(a) of the Trade Act of
1974 may be exceeded only to the extent necessary to permit the
total reduction proclaimed under section 101 of the Trade Act of 19 USC 2111.
1974 relating to such item to take effect within 2 years after the

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 252

Publication in
Federal
Register.

effective date of the first reduction in the rate of duty proclaimed
for such item.
(6) Items for which the President determines the effective date
of the first reduction will be after June 30, 1980, and before
January 1, 1981, to the extent necessary to permit the second
reduction to take effect on January 1,1981.
Ot)) OPPORTUNITY FOR C!OMMENT,—Before making any determination under subsection (a) (1) and (2), the President shall provide
interested parties an opportunity to comment and shall publish his
final determinations in the Federal Register before July 1, 1980.
SEC. 504. SNAPBACK OF TEXTILE TARIFF REDUCTIONS.

19 u s e 1202.

19 u s e 2111.

19 u s e 2119.

The headnotes to Schedule 3 are amended by adding at the end
thereof the following new headnote:
"8. In the case of each item in this schedule and schedule 7 on
which the United States has agreed to reduce the rate of duty,
pursuant to a trade agreement entered into under section 101 of the
Trade Act of 1974 before January 3, 1980, on any cotton, wool, or
manmade fiber textile product as defined in the Arrangement Regarding International Trade in Textiles, £is extended on December 14,
1977 (the Arrangement), if the Arrangement, or a substitute arrangement, including unilateral import restrictions or bilateral agreements, determined by the President to be suitable, ceases to be in
effect with respect to the United States before the total reduction in
the rate of duty for such item under sections 101 and 109 of the Trade
Act of 1974 has become effective, then the President shall proclaim
the rate of duty in rate column numbered 1 for such item existing on
January 1, 1975, to be the rate of duty effective, with respect to
articles entered, or withdrawn from warehouse, for consumption,
within 30 days after such cessation and until the President proclaims
the continuation of such reduction under the next sentence. If
subsequently the Arrangement, or a substitute arrangement, including unilateral import restrictions or bilateral agreements, determined by the President to be suitable, is in effect with respect to the
United States, then the President shall proclaim the continuation of
the reduction of such rate of duty pursuant to such trade agreement.
For purposes of section 109(cX2) of the Trade Act of 1974, any time
when a rate of duty existing on January 1,1975, is in effect under this
headnote shall be time when part of such reduction is not in effect by
reason of legislation of the United States or action thereunder. .
SEC. 505. GOAT AND SHEEP (EXCEPT LAMB) MEAT.

19 u s e 1202.

Schedule 1, part 2, subpart B is amended by striking out item 106.20
and inserting in lieu thereof the following new items:
106.22
106.25

I (except lambs)
Goats

I 2.5t per lb.
I 2.5t per lb.

d( per lb.
5t per lb.

SEC. 506. CERTAIN FRESH, CHILLED, OR FROZEN BEEF.
19 u s e 1202.

Schedule 1, part 2, subpart B is amended by striking out item 107.60
and inserting in lieu thereof the following new items:
Valued over 30 cents per pound:

107.61

Prepared, whether fresh, chilled or frozen,
but not otherwise preserved:
Beef specially processed into fancy cuts,
special shapes, or otherwise made
ready for particular uses by the retail
consumer (but not groimd or comminuted, diced or cut into sizes for stew
meat or similar uses, or rolled or

93 STAT. 253

PUBLIC LAW 96-39—JULY 26, 1979
skewered), which meets the specifications in regulations issued by the U.S.
Department of Agriculture for Prime
or Choice beef, and which has been
so certified prior to exportation by an
official of the government of the exporting country, in accordance with
regulations issued by the Secretary of
the Treasury after consultation with
the Secretary of Agriculture
Other

107.62
107.63

Other..

10% ad val.

20% ad val.

10% ad val.

20% ad val.

10% ad val.

20% ad val.

SEC. 507. YELLOW DENT CORN.

Notwithstanding section 101(b)(1) of the Trade Act of 1974 (19 19 u s e 2111
U.S.C. 2111), the President may proclaim under section 101 of such note.
Act a reduction to 5 cents per bushel of 56 pounds in the rate of duty
applicable to yellow dent corn under rate column numbered 1 of the
Tariff Schedules of the United States, currently classified under item
19 u s e 1202.
130.35.
SEC. 508. CARROTS.
19 u s e 1202.
Schedule 1, part 8, subpart A is amended as follows:
(1) Item 135.41 is amended by striking out the material
appearing in rate columns numbered 1 and 2 and inserting in
lieu thereof "1|^ per lb." and "8 ^ per lb.", respectively.
(2) Item 135,42 is amended by striking out the material
appearing in rate columns numbered 1 and 2 and inserting in
lieu thereof "0.5^ per lb." and "4^ per lb.", respectively.
SEC. 509. DINNERWARE.
19 u s e 1202.
Schedule 5, part 2, subpart C is amended—
(1) by striking out "(items 533.23, 533.25, 533.26, 533.28, 533.63,
533.65, 533.66, 533.68 and 533.69)" in headnote 2(a) and inserting
in lieu thereof the following: "(items 533.22, 533.24, 533.62, and
533.64)";
(2) by striking out "or (c)" in headnote 2(a);
(3) by striking out "533.23,533.25, 533.26, 533.28, 533.63, 533.65,
533.66, or 533.68" in headnote 2(b) and inserting in lieu thereof
the foUowing: "533.22,533.24,533.62 or 533.64";
(4) by striking out "appraiser" in headnote 2(b) and inserting in
lieu thereof "appropriate customs officer";
(5) by inserting a comma and "sold or offered for sale," after
"12 tea cups and their saucers" in headnote 2(b);
(6) by striking out headnote 2(c) and redesignating headnote
2(d) as 2(c); and
(7) by striking out items 533.11 through 533.77, including the
superior heading to such items, and inserting in lieu thereof the
following:
Articles chiefly used for preparing, serving, or storing food
or beverages, or food or beverage ingredients:
633.11

Of coarse-grained earthenware, or of coarse-grained
stoneware

2.5% ad val.

15% ad val.

533.15

Of fine-grained earthenware, whether or not decorated,
having a reddish-colored body and a lustrous glaze
which, on teapots, may be any color, but which, on
other articles, must be mottled, streaked, or solidly
colored brown to black with metallic oxide or salt

6% ad val.

25% ad val.

Of fine-grained earthenware (except articles provided
for in item 533.15) or of fine-grained stoneware:
533.20

Hotel or restaurant ware and other ware not

93 STAT. 254

PUBLIC LAW 96-39—JULY 26, 1979
household ware..

48.7% ad
val.

55% ad val.

28.5% ad
val.

55%advaL

11.4% ad
val.

56% ad val.

18.6% ad

55%8dvaL

Household ware available in specified sets:
533.22

633.24

In any pattern for which the aggregate value
of the articles listed in headnote 2(b) of
this subpart is not over |38..................
In any pattern for which the aggregate value
of the articles listed in headnote 2(b) of
this subpart is over $88........................
Household ware not avulable in spedfied sets:

533.29

Steins with permanently attached pewter lids

vaL
533.30

Hugs and other steins.

533.32

Candy boxes, decanters, punch bowls, pretcel
dishes, tidbit dishes, tiered servers, bonbon
dishes, egg cups, spoons and spoon rests,
oil and vinegar sets, tumblers, and salt and
pepper shaker sets
,

633.34

Cups valued over $5.25 per dozen; saucers
valued over $3 per dozen; soups, oatmeals
and cereals valued over $6 per dozen;
plates not over 9 inches in maximum diameter and valued over $6 per dozen;
plates over 9 but not over 11 inches in
muTimiim diameter and valued over $8.50
per dozen; platters or chop dishes valued
over $35 per dosen; sugars valued over
$21 per dozen; creamers valued over $15
per dozen; and beverage servers valued
over $42 per dozen...............................

18.6% ad
val.

55%advaL

18.6% ad
val.

66%adval.

11.6% ad

56% ad val.

val.
533.39

Other articles..

28.5% ad
vaL

55% ad val.

48.7% ad
val.

75% ad val.

17.5% ad
val.

76% ad val.

88.6% ad
val.

75% ad val.

18.4% ad
vaL

75%advaL

22.5% ad

70% ad val.

Of chinaware or of subporcelain:
533.52

Hotel or restaurant ware and other ware not
household ware
Household ware:

533.54

Of bone chinaware.
Of oonbone chinaware or of subporcelain:
Available in specified sets:

533.62

533.64

In any pattern for which die aggregate value of the articles
listed in headnote 2(b) of t
subpart is not over $56
In any patten for which the aggregate value of the articles
listed in headnote 2(b) ot this
subpart is over $56
Not available in specified sets:

533.72

Steins with permanenUy attached
pewter lids

val.
533.74

Mugs and other steins

22.5% ad
val.

70%advaL

93 STAT. 255

PUBLIC LAW 96-39—JULY 26, 1979
533.76

533.78

533.79

Candy boxes, decanters, punchbowls, pretzel dishes, tidbit
dishes, tiered servers, bonbon
dishes, egg cups, spoons and
spoon rests, oil and vinegar sets,
tumblers, and salt and pepper
shaker sets

22.5% ad
val.

Cups valued over $8 per dozen;
saucers valued over $5.25 per
dozen; soups, oatmeals and cereals valued over $9.30 per dozen;
plates not over 9 inches in maximum diameter and valued over
$8.50 per dozen; plates over 9
but not over 11 inches in maximum diameter and valued over
$11.50 per dozen; platters or
chop dishes valued over $40 per
dozen; sugars valued over $23
per dozen; creamers valued over
$20 per dozen; and beverage
servers valued over $50 per
18% ad val.
dozen
26.1% ad
Other articles

70% ad val.

75% ad val.
75% ad val.

val.

SEC. 510. TARIFF TREATMENT OF WATCHES.

Schedule 7, part 2, subpart E is amended—
(1) by striking out subsection (a) in headnote 3 and redesignating subsections (b), (c), (d), (e), and (f) as (a), (b), (c), (d), and (e),
rGSDGctivGlv
(2) by striking out "items 717.--, 718.--, and 719.—." in
headnote 3(b) (as redesignated by paragraph (1)) and inserting in
lieu thereof "item 719.—.",
(3) by striking out the last two sentences in headnote 3(b) (as
redesignated by paragraph (1)) and inserting in lieu thereof the
following: "For citation purposes, the two blanks on the end of
such item number shall be mled in with the last two digits of the
item number for the applicable base rate. Thus, 'item 719.31'
would be the citation for a watch movement, 0.7 inch wide,
having 17 jewels, which is adjusted or self-winding or constructed
or designed to operate for a period in excess of 47 hours without
rewinding.",
(4) by striking out "in Arabic numerals and" in clauses (iii) and
(iv) of headnote 4(a),
(5) by amending headnote 4(e) to read as follows:
"(e) Dials shall be marked to show the name of the country of
manufacture.",
(6) by amending items 716.10 through 716.26 to read as follows:
716.10

Not over 0.6 inch in width

90i each

$1.50 each

716.11

Over 0.6 but not over 0.8 inch in
width
75t each

$1.50 each

716.12

Over 0.8 but not over 0.9 inch in
75t each

$1.50 each

716.13

Over 0.9 but not over 1 inch m
width
75^ each

$1.50 each

716.14

Over 1 but not over 1.2 inches in

716.15

Over 1.2 but not over 1.5 inches

width

,

width
in width

75( each

$1.50 each

75( each

$1.50 each

19 u s e 1202.

93 STAT. 256

PUBLIC LAW 96-39—JULY 26, 1979
716.16

716.20
716.21
716.22
716.23
716.24
716.25
716.26

Over 1.5 but not over 1.77
inches in width
Having over 1 jewel but not over 7
jewels:
Not over 0.6 inch in width
Over 0.6 but not over 0.8 inch in
width
Over 0.8 but not over 0.9 inch in
width
Over 0.9 but not over 1 inch in
width
Over 1 but not over 1.2 inches in
width
Over 1.2 but not over 1.5 inches
in width
Over 1.5 but not over 1.77
inches in width

75^ each

$1.50 each

$1.80 each

$2.50 each

$1.35 each

$2.50 each

$1.35 each

$2.50 each

$1.20 each

$2.50 each

90f each

$2.50 each

90t each

$2.50 each

QQt each

$2.50 each

(7) by striking out the material appearing in rate column
numbered 2 under items 716.31 through 716.36 and inserting in
lieu thereof the following: "$2.50 each + 1 5 cents for each jewel
over 7",
(8) by striking out item 719.— and inserting in lieu thereof the
following:
719.—
(see
headnote
3(b))

Adjusted or self-winding, whether or not
adjusted (or if a self-winding device can
be incorporated therein), or constructed
or designed to operate for a period in
excess of 47 hours without rewinding

}lunui 1

base rate
-|-50< each
if selfwinding
-f-50t for
each
adjustment

19 use 1202.

19 use 1202.

Column 2
base rate

+$1
each if
selfwinding
-|-$1 for
each
adjustment

and
(9) by striking out the material appearing in rate column
numbered 1 in item 720.75 and inserting in lieu thereof "22.5%
ad val.".
SEC. 511. BROOMS.
Subpart A of part 8 of schedule 7 is amended—
(1) by striking out the superior heading for items 750.26 and
750.27 and inserting in lieu thereof "Valued not over 45 (f- each",
and
(2) by striking out the item description for item 750.28 and
inserting in lieu thereof"Valued over 45 ff each".
SEC. 512. AGRICULTURAL AND HORTICULTURAL MACHINERY, EQUIPMENT, IMPLEMENTS, AND PARTS.
Schedule 8, part 7 is amended—
(1) by adding the following new headnote:
"2. The provisions of items 870.40 and 870.45 do not apply to—
"(i) articles of textile materials; articles provided for in schedule 5; articles of leather or of fur on the skin;
"(ii) articles provided for in schedule 6, part 2, part 3 (subparts
A through F except items 652.12 through 652.38, inclusive,

93 STAT. 257

PUBLIC LAW 96-39—JULY 26, 1979
652.84,652.88,653.00, and 653.01), part 5 (except item 688.40), or
part 6, but interchangeable agricultural and horticultural implements are classifiable in item 870.40 even if mounted at the time
of importation on a tractor provided for in part 6B of schedule 6;
"(iii) ball or roller bearings, including such bearings with
integral shafts, and parts thereof, provided for in items 680.33
through 680.35, inclusive; or
"(iv) articles provided for in item 666.00."; and
(2) by inserting, in numerical sequence, the following new
items:
870.40

870.45

Machinery, equipment, and implements to be used for
agricultural or horticultural purposes
Free

Parts to be used in articles provided for in item
666.00, whether or not such parts are chiefly used
as parts of such articles and whether or not cov
ered by a specific provision within the meaning of
Free
general interpretative rule I0{ij)

The column
2 rate
applicable
in the
absence
of this
item

The column
2 rate
applicable
in the
absence
of this
item

SEC. 513. WOOL.

Subpart B, part 1 of the Appendix is amended by striking out "On
or before 6/30/80" in the effective period column applicable to items
905.10 and 905.11 and inserting in lieu thereof "On or before 6/30/
85".

19 u s e 1202
app.

SEC. 514. CONVERSION TO AD VALOREM EQUIVALENTS OP CERTAIN
COLUMN 2 TARIFF RATES.

(a) GENERAL.—The rates of duty appearing in rate column numbered 2 under the items listed below are amended to the rates of duty
appearing below next to each such item, respectively:
Item:
110.65
111.52
111.56
112.03
112.12
112.24
113.15
114.34
114.36
114.55
141.60
176.47
178.10
252.13
252.15
252.20
252.25
252.27

59-194 O — 81

Rate of duty:
1% ad val.
6% ad val.
1% ad val.
2.5% ad val.
2% ad val.
4% ad val.
2% ad val.
7.5% ad val.
12.5% ad val.
13% ad val.
38.5% ad val.
22.5% ad val.
12.5% ad val.
2 1 % ad val.
22% ad val.
24.5% ad val.
38% ad val.
30.5% ad val.

19 : OL.S

19 u s e 1202.

93 STAT. 258

PUBLIC LAW 96-39—JULY 26, 1979
Item:
252.30
252.40
252.42
252.45
252.59
252.61
252.63
252.67
252.70
252.73
252.75
252.77
253.05
253.10
253.15
253.20
253.25
253.35
253.40
253.45
254.09
254.15
254.18
254.20
254.30
254.35
254.40
254.42
254.44
254.46
254.48
254.50
254.54
254.56
254.58
254.63
254.65
254.70
254.75
254.80
254.85
254.90
254.95
256.20
256.25
256.48
256.65
256.67
256.80
256.85
303.20
307.62
307.64
309.10
309.25
309.70
309.80
309.90
310.06
310.21
310.40
310.50
310.60
310.80

Rate of duty:
24% ad val.
25% ad val.
20.5% ad val.
15.5% ad val.
24% ad val.
20% ad val.
18% ad val.
11.5% ad val.
29% ad val.
22% ad val.
28% ad val.
28% ad val.
17.5% ad val.
27% ad val.
36% ad val.
36% ad val.
19% ad val.
22.5% ad val.
24% ad val.
22.5% ad val.
42% ad val.
38% ad val.
30.5% ad val.
24% ad val.
15% ad val.
31% ad val.
24% ad val.
20% ad val.
18% ad val.
37% ad val.
34% ad val.
35% ad val.
17.5% ad val.
35% ad val.
62.5% ad val.
30% ad val.
20% ad val.
18.5% ad val.
14% ad val.
25% ad val.
20% ad val.
24.5% ad val.
11.5% ad val.
33% ad val.
33% ad val.
21.5% ad val.
25.5% ad val.
43% ad val.
19.5% ad val.
26.5% ad val.
25.5% ad val.
55.5% ad val.
55.5% ad val.
65.5% ad val.
72.5% ad val.
56.5% ad val.
76.5% ad val.
51.5% ad val.
79% ad val.
83.5% ad val.
54% ad val.
61.5% ad val.
81% ad val.
80% ad val.

PUBLIC LAW 96-39—JULY 26, 1979
Item:
312.30
315.35
315.40
315.45
316.60
335.50
335.55
335.60
336.20
336.25
336.30
336.40
336.50
336.60
338.10
338.15
338.30
339.05
345.30
345.50
346.52
346.60
346.82
346.90
347.40
347.55
347.60
347.65
347.70
355.25
355.45
355.60
355.70
355.82
356.30
356.40
357.15
357.20
357.35
357.45
357.90
357.95
358.08
358.14
358.30
358.50
359.30
359.50
363.10
363.85
364.22
364.30
367.05
367.10
367.15
367.25
367.50
367.55
367.60
370.04
370.08
370.12
370.16
370.17

Rate of duty:
36.5% ad val.
19.5% ad val.
20% ad val.
17% ad val.
76.5% ad val.
11.5% ad val.
90% ad val.
78% ad val.
63% ad val.
62% ad val.
95% ad val.
63.5% ad val.
138.5% ad val.
68.5% ad val.
107% ad val.
80.5% ad val.
81% ad val.
63.5% ad val.
65.5% ad val.
113.5% ad val.
61.5% ad val.
79.5% ad val.
58% ad val.
79.5% ad val.
59% ad val.
68.5% ad val.
76.5% ad val.
78% ad val.
84% ad val.
74% ad val.
82% ad val.
70% ad val.
54% ad val.
84.5% ad val.
65% ad val.
74.5% ad val.
68.5% ad val.
63% ad val.
63% ad val.
62% ad val.
21.5% ad val.
88.5% ad val.
66% ad val.
74% ad val.
64.5% ad val.
68.5% ad val.
57% ad val.
83.5% ad val.
48.5% ad val.
77.5% ad val.
64.5% ad val.
74% ad val.
60% ad val.
52.5% ad val.
65.5% ad val.
48.5% ad val.
74.5% ad val.
78% ad val.
72.5% ad val.
75% ad val.
53.5% ad val.
49% ad val.
54% ad val.
50% ad val.

93 STAT. 259

93 STAT. 260

PUBLIC LAW 96-39—JULY 26, 1979
Item:
370.19
870.21
870.22
370.28
870.32
370.40
370.44
370.52
370.56
370.64
370.68
370.76
370.88
372.25
372.30
372.35
372.40
372.45
372.70
372.75
373.15
373.25
374.50
374.60
376.08
376.16
378.35
378.40
378.45
378.60
378.65
380.57
380.59
380.61
380.63
380.66
380.81
380.84
382.48
382.54
382.56
382.58
382.60
382.63
382.78
382.81
385.53
385.61
385.85
388.10
388.20
388.30
389.40
389.50
389.61
389.62
416.10
416.30
416.40
417.10
417.16
417.22
417.24
417.26

Rate of duty:
45%adval.
59.5%adval.
46%adval.
38%adval.
48% ad val.
49% ad val.
60% ad val.
45% ad val.
55.5% ad val.
58% ad val.
67.5% ad val.
51.5% ad val.
68.5% ad val.
83.5% ad val.
63.5% ad val.
54% ad val.
65.5% ad val.
55% ad val.
68.5% ad val.
73% ad val.
52% ad val.
71.5% ad val.
53.5% ad val.
72% ad val.
67.5% ad val.
83.5% ad val.
55.5% ad val.
54% ad val.
52% ad val.
72% ad val.
71% ad val.
63% ad val.
52% ad val.
54.5% ad val,
58% ad val.
58.5% ad val.
72% ad val.
76% ad val.
78.5% ad val.
63% ad val.
52% ad val.
54.5% ad val.
58% ad val.
58.5% ad val.
72% ad val.
76% ad val.
103% ad val.
71.5% ad val.
71% ad val.
70.5% ad val.
56.5% ad val.
60.5% ad val.
72% ad val.
74% ad val.
71.5% ad val.
78.5% ad val.
8.5% ad val.
10% ad val.
55% ad val.
9.5% ad val.
10% ad val.
28% ad val.
16% ad val.
18% ad val.

PUBLIC LAW 96-39—JULY 26, 1979
Item:
417.28
417.30
417.32
417.34
417.40
417.52
417.54
417.70
417.72
417.74
417.76
417.78
418.14
418.24
418.26
418.30
418.62
418.72
418.74
418.76
418.78
419.00
419.02
419.24
419.28
419.34
419.60
419.80
419.82
420.04
420.06
420.08
420.20
420.22
420.24
420.26
420.28
420.32
420.84
420.88
420.94
420.98
421.04
421.10
421.14
421.16
421.18
421.34
421.36
421.46
421.52
421.54
421.56
422.40
422.42
422.72
422.76
423.88
423.92
425.00
425.02
425.12
425.14
425.18

.

Rate of duty:
29% ad vaL
15%advaL
4%adval.
8.5%advaL
49.5% ad val.
29% ad val.
25.5% ad val.
28.5% ad vaL
7.5% ad val.
10.5% ad val.
19% ad val.
6% ad val.
10% ad vaL
2% ad val.
24.5% ad val.
43.5% ad val.
6.5% ad val.
29% ad val.
81% ad val.
5% ad val.
32.5% ad val.
6% ad val.
10% ad val.
3% ad val.
5% ad val.
20% ad val.
20.5% ad val.
18% ad val.
25.5% ad val.
6% ad val.
9% ad val.
8.5% ad val.
7.5% ad val.
23% ad val.
7% ad val.
3% ad val.
23% ad val.
50.5% ad val.
8.5% ad val.
13% ad val.
26% ad val.
8.5% ad val.
8.5% ad val.
25.5% ad val.
54% ad val.
6% ad val.
11.5% ad val.
3% ad val.
62.5% ad val.
4% ad val.
7.5% ad val.
4.5% ad val.
46.5% ad val.
55.5% ad val.
45.5% ad vaL
5% ad val.
8% ad val.
18% ad val.
45.5% ad val.
56.5% ad val.
35% ad val.
50.5% ad val.
39% ad val.
58% ad val.

93 STAT. 26X

93 STAT. 262

PUBLIC LAW 96-39—JULY 26, 1979
Item:
425.38
425.52
425.70
425.72
425.74
425.76
425.78
425.86
425.88
425.94
426.00
426.12
426.14
426.32
426.34
426.36
426.42
426.56
426.72
426.76
426.77
426.78
426.82
426.94
426.98
427.40
427.42
427.44
427.46
427.54
427.56
427.58
427.70
427.72
427.74
427.82
427.88
427.94
427.97
428.04
428.06
428.20
428.22
428.24
428.26
428.30
428.34
428.46
428.52
428.58
428.68
428.80
428.84
428.86
428.88
428.94
428.96
429.00
429.22
429.24
429.26
429.44
429.46
429.47

Rate of duty:
40%adval.
30.5%adval.
16% ad val.
17.5% ad val.
39.5% ad val.
22.5% ad val.
2% ad val.
34.5% ad val.
2% ad val.
17% ad val.
22% ad val.
7% ad val.
5% ad val.
32% ad val.
29% ad val.
3% ad val.
7.5% ad val.
28% ad val.
4% ad val.
11% ad val.
21% ad val.
22.5% ad val.
11.5% ad val.
42% ad val.
27.5% ad val.
7 1 % ad val.
32.5% ad val.
61.5% ad val.
60% ad val.
40% ad val.
32.5% ad val.
37% ad val.
45% ad val.
37.5% ad val.
50.5% ad val.
41.5% ad val.
20% ad val.
20.5% ad val.
46% ad val.
37% ad val.
66% ad val.
•
35% ad val.
39% ad val.
39% ad val.
33.5% ad val.
51% ad val.
63% ad val.
54.5% ad val.
40% ad val.
20.5% ad val.
52% ad val.
46% ad val.
49% ad val.
55% ad val.
31% ad val.
88.5% ad val.
37% ad val.
36.5% ad val.
8.5% ad val.
32% ad val.
125% ad val.
76% ad val.
35% ad val.
114.5% ad val.

:-'**•'
-" •
'^
:
-*

•-''-''
^^•
"«*
•

'
'

''

•
•

•"
• •;"
" ' ^''
['•'f'
'^ ^
' '•'
'i i
'
'
* '
' ~r

PUBLIC LAW 96-39—JULY 26, 1979
Item:
437.02
437.68
437.69
445.05
445.10
445.15
445.20
445.25
445.30
445.35
445.40
445.45
445.50
465.87
472.22
472.30
472.44
473.24
473.28
473.46
473.48
473.52
473.54
473.56
473.60
473.66
473.72
473.74
473.76
473.78
473.80
473.84
490.30
490.32
490.42
490.44
490.46
490.65
490.90
493.18
493.22
522.24
534.84
534.87
607.01
607.02
607.03
607.04
607.12
607.18
607.20
607.21
607.31
607.35
607.36
607.37
607.40
607.51
607.52
607.53
607.57
607.65
608.06
608.10

Rate of duty:
59% ad val.
8% ad val.
5% ad val.
37% ad val.
35.5% ad val.
34% ad val.
73.5% ad val.
34.5% ad val.
43% ad val.
41.5% ad v a l
37.5% ad val.
43.5% ad val.
33.5% ad val.
66% ad val.
13% ad val.
11% ad val.
8.5% ad val.
39.5% ad val.
12% ad val.
5.5% ad val.
12% ad val.
12% ad val.
12.5% ad val.
12.5% ad val.
4.5% ad val.
6% ad val.
11% ad val.
22.5% ad val.
5.5% ad val.
4.5% ad val.
11% ad val.
7.5% ad val.
28% ad val.
29.5% ad val.
34.5% ad val.
50% ad val.
27.5% ad val.
39.5% ad val.
27% ad val.
33.5% ad val.
11% ad val.
13.5% ad val.
51.5% ad val.
50.5% ad val.
1% ad val.
1% ad val.
1% ad val.
1% ad val.
0.5% ad val. + additional duties
0.5% ad val. + additional duties
0.5% ad val.
0.5% ad val. + additional duties
7.5% ad val.
22% ad val.
6.5% ad val.
10.5% ad val.
31.5% ad val.
11.5% ad val.
9% ad val.
40% ad val.
23% ad val.
35% ad val.
1% ad val.
3 % ad val.

93 STAT. 263

93 STAT. 264

PUBLIC LAW 96-39—JULY 26, 1979
Item:
608.30
608.32
608.60
608.70
608.71
608.73
608.75
608.76
608.78
608.92
608.93
608.95
609.25
609.26
609.27
609.35
609.36
609.37
609.41
609.72
609.76
609.80
609.82
609.96
609.98
610.20
610.21
610.25
610.26
610.30
610.31
610.32
610.35
610.36
610.37
610.39
610.40
612.02
612.03
612.05
612.06
612.08
612.10
612.15
612.17
612.20
612.30
612.31
612.32
612.34
612.35
612.36
612.38
612.39
612.40
612.41
612.43
612.44
612.45
612.50
612.52
612.55
612.56
612.60

Rate of duty:
7% ad val.
10.5% ad val. + additional duties
23% ad val
4.5% ad val
5.5% ad val
29.5% ad val
6% ad val.
11% ad val. + additional duties
10% ad val. + additional duties
6% ad val.
6% ad val.
21.5% ad val.
25.5% ad val.
26% ad val.
26% ad val.
34% ad val. + additional duties
34% ad val. + additional duties
12.5% ad val. + additional duties
7% ad val.
26% ad val.
33% ad val. -|- additional duties
2% ad val.
9% ad val. -|- additional duties
2% ad val.
8% ad val. + additional duties
1% ad val.
9% ad val. + additional duties
2% ad val.
8% ad val. + additional duties
13% ad val.
6.5% ad val.
5.5% ad val.
10% ad val. -|- additional duties
9.5% ad val. + additional duties
10% ad val. + additional duties
1% ad val.
8.5% ad val. + additional duties
6% ad val.
6% ad val.
24% ad val.
6% ad val.
24% ad val.
6% ad val.
12% ad val.
38% ad val.
28% ad val.
38% ad val.
'
7.5% ad val.
48% ad val.
38% ad val.
32% ad val.
48% ad val.
38% ad val.
9% ad val.
38% ad val.
48% ad val.
38% ad val.
9% ad val.
49% ad val.
48% ad val.
49% ad val.
12% ad val.
49% ad val.
7% ad val.

PUBLIC LAW 96-39—JULY 26, 1979
Item:
612.61
612.62
612.63
612.64
612.70
612.71
612.72
612.73
612.80
612.81
612.82
613.02
613.03
613.04
613.06
613.08
613.10
613.12
613.15
613.18
618.01
618.02
618.04
618.06
618.10
618.15
618.22
618.25
618.27
618.40
618.45
624.02
624.03
624.04
624.10
624.18
624.22
624.30
624.32
624.40
624.50
624.52
626.10
626.17
626.18
626.31
628.57
629.25
629.28
629.32
632.32
632.42
642.12
642.50
642.54
642.56
642.58
642.62
642.66
642.68
642.70
642.76
642.85
642.96

Rate of duty:
32% ad val.
9% ad val.
48% ad val.
9% ad val.
32% ad val.
32% ad val.
28% ad val.
28% ad val.
48% ad val.
17% ad val.
49% ad val.
13% ad val.
13% ad val.
47% ad val.
45.5% ad val.
49% ad val.
10% ad val.
49% ad val.
46% ad val.
49% ad val.
18.5% ad val.
11% ad val.
25% ad val.
10.5% ad val.
16% ad val.
11% ad val.
25% ad val.
13.5% ad val.
9.5% ad val.
11% ad val.
15.5% ad val.
10.5% ad val.
10% ad val.
11.5% ad val.
10% ad val.
47% ad val.
44% ad val.
10% ad val.
45% ad val.
45% ad val.
10% ad val.
44% ad val.
11% ad val.
4% ad val.
24% ad val.
25.5% ad val.
60.5% ad val.
50% ad val.
58% ad val.
35.5% ad val.
20% ad val.
21% ad val.
40% ad val.
28% ad val.
19.5% ad val.
28% ad val.
18% ad val.
31% ad val.
25% ad val.
43% ad val.
27.5% ad val.
51.5% ad val.
37% ad val.
2% ad val.

93 STAT. 265

93 STAT. 266

PUBLIC LAW 96-39—JULY 26, 1979
Item:
644.02
644.08
644.11
644.17
644.24
644.36
644.38
644.40
644.42
644.46
644.52
644.64
644.68
644.80
644.84
644.88
644.92
644.95
644.98
646.02
646.20
646.25
646.26
646.28
646.30
646.32
646.45
646.54
646.56
646.74
646.80
646.81
646.82
646.83
646.84
646.85
646.86
646.87
646.88
646.89
649.33
651.07
652.24
652.41
653.97
654.10
657.30
657.35
657.70
660.65
672.20
680.20
680.30
690.25
712.10
720.75
725.04
730.23
730.25
730.27
730.29
730.37
730.39
730.41

Rate of duty:
6.5% ad val.
61.5% ad val.
47.5% ad val.
28% ad val.
47% ad val.
21% ad val.
22.5% ad val.
24.5% ad val.
23% ad val.
8% ad val.
26% ad val.
13.5% ad val.
104% ad val.
10% ad val.
15% ad val.
3% ad val.
6% ad val.
20% ad val.
4% ad val.
4% ad val.
4% ad val.
2% ad val.
3.5% ad val.
2% ad val.
5.5% ad val.
8% ad val.
8% ad val.
3.5% ad val.
0.5% ad val.
7% ad val.
39.5% ad val.
29.5% ad val.
28.5% ad val.
27% ad val.
36% ad val.
29.5% ad val.
40% ad val.
41% ad val.
77% ad val.
32.5% ad val.
6% ad val.
72% ad val.
10% ad val.
10% ad val.
35.5% ad val.
45.5% ad val.
45.5% ad val.
46% ad val.
2.5% ad val.
68.5% ad val.
42% ad val.
47% ad val.
45% ad val.
3% ad val.
70% ad val.
45% ad val.
37.5% ad val.
82.5% ad val.
82.5% ad val.
74% ad val.
73% ad val.
75% ad val.
75% ad val.
79% ad val.

•

PUBLIC LAW 96-39—JULY 26, 1979
Item:
730.43
730.51
730.53
730.55
730.57
730.63
730.71
730.74
750.10
760.10
760.20
760.30
770.05
770.07
770.10
771.20
771.31
771.35
771.50
772.06
772.80
773.20
774.35
790.59
790.60
790.61
790.62

.'.

Rate of duty:
71.5% ad val.
65% ad val.
65% ad val.
65% ad val.
65% ad val.
69.5% ad val.
73.5% ad val.
57.5% ad val.
36% ad val.
41.5% ad val.
21.5% ad val.
20% ad val.
42.5% ad val.
64% ad val.
56% ad val.
30.5% ad val.
28.5% ad val.
18% ad val.
17% ad val.
84.5% ad val.
57.5% ad val.
105.5% ad val.
56% ad val.
56% ad val.
55.5% ad val.
52% ad val.
51% ad val.

93 STAT. 267

"

(b) EFFECTIVE DATE.—The amendments made by subsection (a) 19 use 1202
apply with respect to articles entered, or withdrawn from warehouse, "°*®for consumption after December 31,1979.
TITLE VI—CIVIL AIRCRAFT AGREEMENT
SEC. 601. CIVIL AIRCRAFT AND PARTS.

(a) GENERAL.—When the conditions under section 2(b) of this Act on
acceptance of the Agreement on Trade in Civil Aircraft are fulfilled,
the President may proclaim after September 30, 1979, the changes
provided for under the following amendments:
(1) The headnotes to schedule 6, part 6, subpart C of the Tariff
Schedules of the United States are amended by inserting the
following new headnote:
"3. Certified for Use in Civil Aircraft.
"(a) Whenever the term 'certified for use in civil aircraft' is used in
an item description in the schedules, the importer shall file a written
statement, accompanied by such supporting documentation as the
Secretary of the Treasury may require, with the appropriate customs
officer stating that the imported article has been imported for use in
civil aircraft, that it will be so used, and that the article has been
approved for such use by the Administrator of the Federal Aviation
Administration (F.A.A.) or by the airworthiness authority in the
country of exportation, if such approval is recognized by the F.A.A. as
an acceptable substitute for F.A.A. certification, or that an application for approval for such use has been submitted to, and accepted by,
the Administrator of the F.A.A.
"(b) For purposes of the schedules, the term 'civil aircraft' means
all aircraft other than aircraft purchased for use by the Department
of Defense or the United States Coast Guard.".
(2) A duty rate of "Free" in rate column numbered 1 of the
Tariff Schedules of the United States for those articles classified
in the following items which the President determines would

Ante, p. 237.

19 USC 1202.

"Civil aircraft."
"Free."

93 STAT. 268

19 use 1202.

PUBLIC LAW 96-39—JULY 26, 1979
provide coverage comparable to that provided by foreign countries in the Annex to the Agreement on Trade in Civil Aircraft if
such articles are certified for use in civil aircraft in accordance
with headnote 3 to schedule 6, part 6, subpart C of the Tariff
Schedules ofthe United states:
518.51
544.41
642.20
647.03
647.05
652.09
653.39
653.94
660.44
660.46
660.52
660.54
660.85
660.97
661.10
661.12
661.15
661.20
661.35
661.90
661.95
662.50
664.10
676.15
676.30
678.50

Ante, p. 267.
19 use 2135

?9 use 2135
19 use 2101.

680.47
680.50
680.55
680.56
682.07
682.40
682.60
683.60
684.30
684.40
684.50
684.70
685.24
685.29
685.40
685.60
685.70
686.22
686.24
686.60
688.12
688.40
694.15
694.20
694.40
694.60

709.45
710.08
710.14
710.16
710.30
710.46
711.36
711.37
711.82
711.84
711.98
712.05
712.47
712.49
715.15
720.08
727.47
727.48
727.55
745.45
772.45
772.65.

. -

• •

' '

(3) Section 466 of the Tariff Act of 1930 (19 U.S.C. 1466) is
amended by adding at the end thereof the following new subsection:
"(f) The duty imposed under subsection (a) shall not apply to the
cost of repair parts, materials, or expenses of repairs in a foreign
country upon a United States civil aircraft, within the meaning of
headnote 3 to Schedule 6, part 6, subpart C of the Tariff Schedules of
the United States.".
(b) TERMINATION AND WITHDRAWAL.—For purposes of section 125 of

^^® Trade Act of 1974, the amendments made under subsection (a), if
any, shall be considered to be trade agreement obligations entered
into under the Trade Act of 1974 of benefit to foreign countries or
instrumentalities.
TITLE VII—CERTAIN AGRICULTURAL MEASURES
SEC. 701. LIMITATION ON CHEESE IMPORTS.

19 use 1202
^°^-

(a) PROCLAMATION.—The President shall by proclamation limit the
amount of quota cheese which may enter the customs territory of the
United States in any calendar year after 1979 to not more than
111,000 metric tons. Any such proclamation shall be considered a
proclamation which is issued by the President under section 22 of the
Agricultural Adjustment Act (7 U.S.C. 624) and which meets the
requirements of such section.
(b) RESTRICTION ON EMERGENCY ACTION.—No increase in the
amount proclaimed under subsection (a) to an amount greater than
111,000 metric tons for any calendar year may be proclaimed except
in accordance with section 22 of the Agricultural Adjustment Act.
The President may not proclaim any such increase to an amount
greater than 111,000 metric tons by use of the procedure established
for immediate action by the second paragraph of subsection (b) of

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 269

such section, at any time before January 1,1983, unless the Secretary
determines that extraordinary circumstances warrant such action
and reports such determination to the President,
(c) DEFINITIONS.—For purposes of this title—
(1) QUOTA CHEESE.—The term "quota cheese" means the articles provided for in the following items of the Tariff Schedules of
the United States:
19 use 1202.
(A) 117.00 (except Stilton produced in the United Kingdom);
(B) 117.05 (except Stilton produced in the United Kingdom);
(0117.15;
(D) 117.20;
(E) 117.25;
(F) 117.40 (except Goya in original loaves);
(G) 117.55;
(H) 117.60 (except Gammelost and Nokkelost);
(I) 117.75 (except goat's milk cheeses and soft-ripened cow's
milk cheeses);
(J) 117.81; and
(K) 117.85 (except goat's milk cheeses and soft-ripened
cow's milk cheeses).
(2) SECRETARY.—The term "Secretary" means the Secretary of
Agriculture.
SEC. 702. ENFORCEMENT.
(a) DETERMINATION AND LISTING OF SUBSIDIES.—
(1) INITIAL DETERMINATION AND ANNUAL LISTING.—Not

19 use 1202

later "° ®'

than January 1,1980, the administering authority shall—
(A) determine, in consultation with the Secretary, whether
any foreign government is providing a subsidy with respect
to any article of quota cheese, and
(B) publish a list of the type and the amount of each such
subsidy which is determined to exist.
Not later than January 1 of each year beginning with 1981, the
administering authority shall republish such list, incorporating
the changes and additional subsidies determined for the preceding calendar year under paragraph (2).
(2) QUARTERLY DETERMINATION OF CHANGES AND ADDITIONAL

SUBSIDIES.—Not later than April 1, July 1, and October 1 of each
year beginning with 1980, and not later than January 1 of each
year beginning with 1981, the administering authority shall
determine, in consultation with the Secretary—
(A) whether any changes in the type or amount of any
subsidy included in the current annual list under paragraph
(1) (as modified by quarterly lists under this paragraph) have
occurred, and
(B) whether any subsidy not included in such list is being
provided with respect to any article of quota cheese by a
foreign government, and the type and amount of any such
subsidy which is determined to exist.
Not later than April 1, July 1, and October 1, the administering
authority shall publish such changes and additional subsidies for
the preceding calendar quarter.
(3) ADDITIONAL DETERMINATIONS.—Any person, including the

Secretary, may request the administering authority to make a
determination under subparagraph (A) or (B) of paragraph (2).
Not later than 30 days after receiving such a request, the

93 STAT. 270

PUBLIC LAW 96-39—JULY 26, 1979
administering authority shall (A) make the determination, in
consultation with the Secretary, (B) notify the person making the
request of such determination, and (C) publish such modification,
if any. Any such determination shall be in addition to the
quarterly determinations required under paragraph (2). Requests made under this paragraph shall be supported by information reasonably available to the person requesting the determination.
(b) COMPLAINTS OF PRICE-UNDERCUTTING BY SUBSIDIZED IMPORTS.—

"Duty-paid
wholesale price.

(1) IN GENERAL.—Any person may make a written complaint to
the Secretary alleging that—
(A) the price at which any article of quota cheese is offered
for sale in the United States on a duty-paid wholesale basis
(hereinafter in this section referred to as the "duty-paid
wholesale price") is less than the domestic wholesale market
price of similar articles produced in the United States, and
(B) a foreign government is providing a subsidy with
respect to such article of quota cheese.
(2) DETERMINATIONS.—(A) The Secretary shall investigate and
determine, not later than 30 days after receiving a complaint
under paragraph (1), the validity of the allegations made under
paragraph (1)(A).
(B) Except as otherwise provided in this subparagraph, the
existence and the type and amount of any subsidy alleged under
paragraph (1)(B) shall be determined by reference to the current
list, as determined and published under subsection (a). If the
complaint alleges a subsidy which is not included in such current
list, or which is different in type or amount from a subsidy which
is included in such current list, the Secretary shall immediately
request the administering authority to make a determination
with respect to the subsidy pursuant to subsection (a)(3). The
administering authority shall make such determination in accordance with such subsection and shall report such determination to the Secretary.
(c) REPORTS OF DETERMINATIONS.—

Publication in
Federal
Register.

(1) PUBLICATION.—The Secretary shall publish the determinations made under subsection (b) in the Federal Register not later
than 5 days after the date on which the Secretary makes his
determination under subsection (b)(2)(A).
(2) NOTIFICATION OF FOREIGN GOVERNMENT.—Whenever it is

determined under subsection (b) that the duty-paid wholesale
price of any article of quota cheese is less than the domestic
wholesale market price of a similar article produced in the
United States and that a foreign government is providing a
subsidy with respect to such article of quota cheese, the Secretary
shall immediately notify the Special Representative for Trade
Negotiations. The Special Representative shall notify the foreign
government or governments involved of such determination not
later than 3 days after the date on which the Secretary makes his
determination under subsection (b)(2)(A).
(3) REPORT TO PRESIDENT.—If, within 15 days after receiving
notification under paragraph (2), the foreign government does
not eliminate the subsidy or take such action as may be necessary to ensure that the duty-paid wholesale price of the article of
quota cheese will not be less than the domestic wholesale market
price of similar articles produced in the United States, the
Secretary shall immediately—

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 271

(A) report the determinations under subsection (b) to the
President, and
(B) recommend the imposition of a fee or quantitative
limitation with respect to the importation of such article of
quota cheese from the country involved, in such amount as
the Secretary determines necessary.
(d) PRESIDENTIAL ACTION.—

(1) IN GENERAL.—Not later than 7 days after receiving a report
under subsection (cKB) with respect to an article of quota cheese
(or not later than 3 days after receiving a report under paragraph
(2) of this subsection in any case in which such paragraph
applies), the President shall—
(A) proclaim the imposition of a fee on the importation of
such article from the country involved in such amount (not
to exceed the amount of the subsidy determined under
subsection (b)(2)(B)) as may be necessary to ensure that the
duty-paid wholesale price of such article will not be less than
the domestic wholesale market price of similar articles
produced in the United States, or
(B) proclaim a prohibition on the entry, in whole or part, of
such article of quota cheese from such country into the
United States,
and shall direct the Commissioner of Customs to administer and
enforce such fee or quantitative limitation. Any fee imposed
under subparagraph (A) or any quantitative limitation imposed
under subparagraph (B) shall be in addition to any other fee or
quantitative limitation imposed by law on the importation of
quota cheese.
(2) ADDITIONAL INVESTIGATION.—If the President finds that the
determinations or recommendations of the Secretary reported
under subsection (c)(3) are unsubstantiated by fact, he shall, not
later than 7 days after receiving such report, notify the Secretary
and direct him to make a further investigation. The Secretary
shall, within 7 days of receiving such notification, make such
investigation and report his findings to the President, including
any modification in such determinations or recommendations.
The President shall thereupon make the proclamation required
by paragraph (1), unless the Secretary finds that there is no basis
for the determinations or recommendations reported under
subsection (c)(3) whether or not modified.
(e) ADMINISTRATION.—Any fee or quantitative limitation proclaimed pursuant to subsection (d) and any termination or modification thereof pursuant to subsection (g) shall apply with respect to
articles entered, or withdrawn from warehouse, for consumption
after the date which is 3 days after the President makes the
proclamation required by subsection (d). Such fees shall be treated for
administrative purposes as duties imposed by the Tariff Act of 1930,
but shall not be considered as duties for the purpose of granting any
preferential concession under any law or international obligation of
the United States.

Importation fee.

i

^^r „ .. .^

Report to
President.

Proclamation.
>,
-t .»fiv

*
,

. ,

19 u s e 1654.

(f) INAPPLICABILITY OF COUNTERVAILING DUTIES DURING EFFECTIVE
PERIOD OF CHEESE AGREEMENTS.—NO countervailing duty shall be

imposed under title I of this Act or under section 303 of the Tariff Act Ante, p. 150.
of 1930 with respect to an article of quota cheese which is the product 19 u s e 1303.
of any country at any time during which an agreement relating to
cheese described in section 2(c)(8) containing a commitment from a
foreign government with respect to price undercutting is in effect
between the United States and such country.

93 STAT. 272

PUBLIC LAW 96-39—JULY 26, 1979
(g) TERMINATION OR MODIFICATION OF PRESIDENTIAL ACTION.—

Report to
President.
Proclamation.

Proclamation.

Ante, p. 176.

(1) TERMINATION.—If, at any time after the President takes an
action under subsection (d) with respect to the importation from
a foreign country of an article of quota cheese, the Secretary
receives reasonable evidence and assurance that, with respect to
future entries of such article into the customs territory of the
United States—
(A) the duty-paid wholesale price of such article will not be
less than the domestic wholesale market price of similar
articles produced in the United States, or
(B) the foreign government will no longer provide a subsidy with respect to such article of quota cheese,
the Secretary shall notify the President of such finding and the
President shall, by proclamation, terminate such action with
respect to the importation of such article from such country.
(2) MODIFICATION.—The Secretary shall recommend to the
President such modifications of fees or quantitative limitations
imposed under subsection (d) with respect to any article of quota
cheese as may be necessary to ensure that the duty-paid wholesale price of such article will not be less than the domestic
wholesale market price of similar articles produced in the United
States, and the President shall, by proclamation, make such
modifications. The amount of any fee, as so modified, shall not be
greater than the amount of the subsidy provided by the foreign
government with respect to the article of quota cheese.
(h) DEFINITIONS.—For purposes of this section—
(1) ADMINISTERING AUTHORITY.—The term "administering authority" has the same meaning such term has in section 771(1) of
theTariffActofl930.
(2) SUBSIDY.—The term "subsidy" has the same meaning such
term has in section 771(5) of the Tariff Act of 1930.
(3> DOMESTIC WHOLESALE MARKET, DOMESTIC WHOLESALE
MARKET PRICE, AND DUTY-PAID WHOLESALE PRICE.—The domestic

5 u s e 500 efscg.

wholesale market and the domestic wholesale market price of
any article similar to an article of quota cheese, and the dutypaid wholesale price of any article of quota cheese shall be
determined under regulations prescribed by the Secretary not
later than January 1,1980, in accordance with chapter 5 of title 5
of the United States Code.
SEC. 703. LIMITATION ON IMPORTS OF CHOCOLATE CRUMB.

19 u s e 1202
note.
19 u s e 1202.

The President shall by proclamation—
(1) increase the amount of the articles of chocolate provided for
in item 950.15 of the Tariff Schedules of the United States which
may enter the customs territory of the United States in any
calendar year after 1979 to include—
(A) 2,000 metric tons from Australia, and
(B) one kilogrgmi from New Zealand, and
(2) increase the amount of the articles of chocolate and the
articles containing chocolate provided for in item 950.16 of the
Tariff Schedules of the United States which may enter the
customs territory of the United States in any calendar year after
1979 to include one kilogram from New Zealand.
Such proclamation shall be considered a proclamation which is issued
by the President pursuant to section 22 of the Agricultural Adjustment Act (7 U.S.C. 624) and which meets the requirements of such
section.

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 273

SEC. 704. AMENDMENTS TO MEAT IMPORT LAW.

(a) IN GENERAL.—Subsection (a) of section 2 of the Act entitled "An
Act to provide for the free importation of certain wild animals, and to
provide for the imposition of quotas on certain meat and meat
products" (78 Stat. 594) is amended to read as follows:
"(aXD It is the policy of the Congress that the aggregate quantity of
the articles specified in items 106.10 (relating to fresh, chilled, or
frozen cattle meat), 106.22 (relating to fresh, chilled, or frozen meat of
sheep (except lambs)), 106.25 (relating to fresh, chilled, or frozen meat
of goats), and 107.61 (relating to certain prepared fresh, chilled, or
frozen beef) of the Tariff Schedules of the United States which may be
imported into the United States in any calendar year beginning after
December 31, 1964, should not exceed 725,400,000 pounds, increased
or decreased as provided in paragraph (2).
"(2) The amount referred to in paragraph (1) shall be increased or
decreased for any calendar year by the same percentage that estimated average annual domestic commercial production of the articles specified in items 106.10, 106.22, and 106.25 of the Tariff
Schedules of the United States in that calendar year and the two
preceding calendar years increases or decreases in comparison with
the average annual domestic commercial production of such articles
during the years 1959 through 1963, inclusive.".
(b) MINIMUM ACCESS FLOOR.—Paragraph (1) of subsection (c) of
section 2 of such Act is amended by adding at the end thereof the
following: "Notwithstanding the preceding sentence, no limitation
proclaimed for a calendar year after 1979 shall be less than
1,200,000,000 pounds.".

19 u s e 1202
note.
19 u s e 1202
note.

Ante, p. 252

19 u s e 1202
note.

(c) CONFORMING AMENDMENTS.—

(1) Paragraphs (1) and (2) of subsection 0)) of section 2 of such
Act is amended by inserting "(1)" after "subsection (a)".
(2) Subsection (cXD of section 2 of such Act is amended by
inserting "(1)" after "subsection (a)".
(3) Subsection (cX3) of section 2 of such Act is amended by
inserting "(1)" after "subsection (a)".
(4) Paragraphs (2) and (3) of subsection (d) of section 2 of such
Act are amended by inserting "(1)" after "subsection (a)".
(d) EFFECTIVE DATE.—The amendment made by subsection (a) shall
apply to calendar years after 1979. The amendments made by
subsection (c) shall take effect on January 1,1980.
TITLE VIII—TREATMENT OF DISTILLED SPIRITS
Subtitle A—Tax Treatment
SEC. 801. SHORT TITLE; AMENDMENT OF 1954 CODE.

Distilled Spirits.
Tax Revision
Act of 1979.

(a) SHORT TITLE.—This subtitle may be cited as the "Distilled 26 use i note.
Spirits Tax Revision Act of 1979".
(b) AMENDMENT OF 1954 CODE.—Except as otherwise expressly
provided, whenever in this subtitle an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a section or
other provision, the reference shall be considered to he made to a
section or other provision of the Internal Revenue Code of 1954. 26 USe 1 et seq.
SEC. 802. REPEAL OF WINE-GALLON METHOD OF TAXING DISTILLED
SPIRITS.
Paragraph (1) of section 5001(a) (relating to imposition, rate, and 26 USe 5001.
attachment of tax) is amended to read as follows:

93 STAT. 274
, . , ^p .

Repeal.
502Y^5026
Repeal.
26 u s e
5081-5084.
26 u s e 5006.

PUBLIC LAW 96-39—JULY 26, 1979
"(1) I N GENERAL.—There is hereby imposed on all distilled
spirits produced in or imported into the United States a tax at
the rate of $10.50 on each proof gallon and a proportionate tax at
the like rate on all fractional parts of a proof gallon."
SEC. 803. REPEAL OF RECTIFICATION TAXES ON DISTILLED SPIRITS.
(a) GALLONAGE TAXES.—Subpart B of part I of subchapter A of
chapter 51 (imposing rectification taxes) is hereby repealed.
(b) OCCUPATIONAL T A X . — S u b p a r t A of p a r t II of subchapter A of
c h a p t e r 51 (imposing occupational t a x on rectifiers) is hereby repealed.
SEC. 804. DETERMINATION AND PAYMENT OF TAX.
(a) DETERMINATION.—Subsection (a) of section 5006 (relating t o
d e t e r m i n a t i o n of tax) is a m e n d e d to read a s follows:
"(a) R E Q U I R E M E N T S . —

"(1) I N GENERAL.—Except a s otherwise provided in this section,
the tax on distilled spirits shall be determined when the spirits
are withdrawn from bond. Such tax shall be determined by such
means as the Secretary shall by regulations prescribe, and with
the use of such devices and apparatus (including but not limited
to tanks and pipelines) as the Secretary may require. The tax on
distilled spirits withdrawn from the bonded premises of a distilled spirits plant shall be determined upon completion of the
gauge for determination of tax and before withdrawal from
bonded premises, under such regulations as the Secretary shall
prescribe.

; v'

"(2) DISTILLED SPIRITS NOT ACCOUNTED FOR.—If the Secretary

finds that the distiller has not accounted for all the distilled
spirits produced by him, he shall, from all the evidence he can
obtain, determine what quantity of distilled spirits was actually
produced by such distiller, and an assessment shall be made for
the difference between the quantity reported and the quantity
shown to have been actually produced at the rate of tax imposed
by law for every proof gallon."
26 u s e 5061.

(b) EXTENSION OF TIME FOR PAYING TAX.—Section 5061 (relating to

method of collecting tax) is amended by adding at the end thereof the
following new subsection:
"(d) EXTENSION OF TIME FOR COLLECTING TAX ON DISTILLED SPIR-

ITS.—In the case of distilled spirits to which subsection (a) applies
which are withdrawn from the bonded premises of a distilled spirits
plant under bond for deferred payment of tax, the last day for filing a
return (with remittances) for each semimonthly return period shall
be determined under the following table:

iv

?'.••:•« i

-

,„ »^ . ,.r

"If the return period is in—
1980

Such last day shall be—
The last day of the first succeeding
return period plus 5 days.
1981
The last day of the first succeeding
return period plus 10 days.
1982 or any year thereafter
The last day of the second succeeding
return period."
SEC. 805. ALL-IN-BOND METHOD OF DETERMINING EXCISE TAX ON DISTILLED SPIRITS.

26 u s e 5171.

(a) ESTABLISHMENT OF DISTILLED SPIRITS PLANTS.—Section 5171

.iim. >-

(relating to establishment of distilled spirits plants) is amended to
read as follows:

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 275

"SEC. 5171. ESTABLISHMENT.
"(a) CERTAIN OPERATIONS MAY BE CONDUCTED ONLY ON BONDED

PREMISES.—Except as otherwise provided by law, operations as a
distiller, warehouseman, or processor may be conducted only on the
bonded premises of a distilled spirits plant by a person who is
qualified under this subchapter.
"(b) ESTABLISHMENT OF DISTILLED SPIRITS PLANT.—A distilled spirits plant may be established only by a person who intends to conduct
at such plant operations as a distiller, as a warehouseman, or as both.
"(c) REGISTRATION.—

"(1) IN GENERAL.—Each person shall, before commencing operations at a distilled spirits plant (and at such other tirnes as the
Secretary may by regulations prescribe), make application to the
Secretary for, and receive notice of, the registration of such
plant.
"(2)

APPLICATION REQUIRED WHERE NEW OPERATIONS ARE

ADDED.—No operation in addition to those set forth in the
application made pursuant to paragraph (1) may be conducted at
a distilled spirits plant until the person has made application to
the Secretary for, and received notice of, the registration of such
additional operation.
"(3) SECRETARY MAY ESTABLISH MINIMUM CAPACITY AND LEVEL

OF ACTIVITY REQUIREMENTS.—The Secretary may by regulations
prescribe for each type of operation minimum capacity and level
of activity requirements for qualifying premises as a distilled
spirits plant.
"(4) APPLICANT MUST COMPLY WITH LAW AND REGULATIONS.—NO

plant (or additional operation) shall be registered under this
section until the applicant has complied with the requirements of
law and regulations in relation to the qualification of such plant
(or additional operation).
"(d) PERMITS.—

"(1) REQUIREMENTS.—Each person required to file an application for registration under subsection (c) whose distilled spirits
operations (or any part thereof) are not required to be covered by
a basic permit under the Federal Alcohol Administration Act (27
U.S.C. sees. 203 and 204) shall, before commencing the operations
(or part thereof) not so covered, apply for and obtain a permit
under this subsection from the Secretary to engage in such
operations (or part thereof). Subsections (b), (c), (d), (e), (f), (g), and
(h) of section 5271 are hereby made applicable to persons filing
applications and permits required by or issued under this subsection.

-. y..
' "'" "

"(2) EXCEPTIONS FOR AGENCIES OF A STATE OR POLITICAL SUBDIVI-

SIONS.—Paragraph (1) shall not apply to any agency of a State or
political subdivision thereof or to any officer or employee of any
such agency, and no such agency, officer, or employee shall be
required to obtain a permit thereunder.
"(e) CROSS REFERENCES.—
"(1) For penalty for failure of a distiller or processor to file application
for registration as required by this section, see section 5601(a)(2).
"(2) For penalty for the filing of a false application by a distiller, warehouseman, or processor of distilled spirits, see section 5601(a)(3)."
(b) CHANGES IN PROVISIONS RELATING TO FACILITIES ON BONDED
PREMISES OF DISTILLED SPIRITS PLANTS.—

(1) Paragraphs (2), (3), (4), and (5) of section 5178(a) (relating to 26 USC 5178.
location, construction, and arrangement on premises of distilled
spirits plants) are amended to read as follows:

93 STAT. 276

PUBLIC LAW 96-39—JULY 26, 1979
"(2) PRODUCTION OPERATIONS.—

"(A) Any person establishing a distilled spirits plant may,
as described in his application for registration, produce
distilled spirits from any source or substance.
"(B) The distilling system shall be continuous and shall be
so designed and constructed and so connected as to prevent
the unauthorized removal of distilled spirits before their
production gauge.
"(C) The Secretary is authorized to order and require—
"(i) such identification of, changes of, and additions to,
distilling apparatus, connecting pipes, pumps, tanks,
and any machinery connected with or used in or on the
premises, and
"(ii) such fastenings, locks, and seals to be part of any
of the stills, tubs, pipes, tanks, and other equipment,
as he may deem necessary to facilitate inspection and afford
adequate security to the revenue.
"(3) WAREHOUSING OPERATIONS.—

26 use 5212.

26 use 5173.

"(A) Any person establishing a distilled spirits plant for
the production of distilled spirits may, as described in the
application for registration, warehouse bulk distilled spirits
on the bonded premises of such plant.
"(B) Distilled spirits plants for the bonded warehousing of
bulk distilled spirits elsewhere than as described in subparagraph (A) may be established at the discretion of the Secretary by proprietors referred to in subparagraph (A) or by
other persons under such regulations as the Secretary shall
prescribe.
"(4) PROCESSING OPERATIONS.—Any person establishing a distilled spirits plant may, as described in the application for
registration, process distilled spirits on the bonded premises of
such plant."
(2) Section 5212 (relating to transfer of distilled spirits between
bonded premises) is amended—
(A) by striking out "Distilled spirits" and inserting in lieu
thereof "Bulk distilled spirits", and
(B) by striking out "distilled spirits" and inserting in lieu
thereof "bulk distilled spirits".
(c) BoNDS.—Section 5173 (relating to qualification bonds) is amended to read as follows:
"SEC. 5173. BONDS.
"(a) OPERATIONS AT, AND WITHDRAWALS FROM, DISTILLED SPIRITS
PLANT MUST B E COVERED BY BOND.—

"(1) OPERATIONS.—No person intending to establish a distilled
spirits plant may commence operations at such plant unless such
person has furnished bond covering operations at such plant.
"(2) WITHDRAWALS.—No distilled spirits (other than distilled
spirits withdrawn under section 5214 or 7510) may be withdrawn
from bonded premises except on payment of tax unless the
proprietor of the bonded premises has furnished bond covering
such withdrawal.
"(b) OPERATIONS BONDS.—The bond required by paragraph (1) of
subsection (a) shall meet the requirements of paragraph (1), (2), or (3)
of this subsection:
"(1) ONE PLANT BOND.—The bond covers operations at a single
distilled spirits plant.

PUBLIC LAW 9 6 - 3 9 - J U L Y 26, 1979
"(2) ADJACENT WINE CELLAR BOND.—The bond covers operations at a distilled spirits plant and at an adjacent bonded wine
cellar.
"(3) AREA BOND.—The bond covers operations at 2 or more
distilled spirits plants (and adjacent bonded wine cellars)
which—
"(A) are located in the same geographical area (as designated in regulations prescribed by the Secretary), and
"(B) are operated by the same person (or, in the case of a
corporation, by such corporation and its controlled subsidiaries).
"(c) WITHDRAWAL BONDS.—The bond required by paragraph (2) of
subsection (a) shall cover withdrawals from 1 or more bonded premises the operations at which could be covered by the same operations
bond under subsection (b).
"(d) UNIT BONDS.—Under regulations prescribed by the Secretary,
the requirements of paragraphs (1) and (2) of subsection (a) shall be
treated as met by a unit bond which covers both operations at, and
withdrawals from, 1 or more bonded premises which could be covered
by the same operations bond under subsection (b).
"(e) TERMS AND CONDITIONS.—

"(1) IN GENERAL.—Any bond furnished under this section shall
be conditioned that the person furnishing the bond—
"(A) will faithfully comply with all provisions of law and
regulations relating to the activities covered by such bond,
and
"(B) will pay—
"(i) all taxes imposed by this chapter, and
"(ii) all penalties incurred by, or fmes imposed on,
such person for violation of any such provision.
"(2) OTHER TERMS AND CONDITIONS.—Any bond furnished under
this section shall contain such other terms and conditions as may
be required by regulations prescribed by the Secretary.
"(f) AMOUNT.—

"(1) IN GENERAL.—The penal sum of any bond shall be the
amount determined under regulations prescribed by the Secretary.
"(2) MAXIMUM AND MINIMUM AMOUNT.—The Secretary shall by
regulations prescribe a minimum amount and a maximum
amount for each type of bond which may be furnished under this
section.
"(g) TOTAL AMOUNT AVAILABLE.—The total amount of any bond
furnished under this section shall be available for the satisfaction of
any liability incurred under the terms and conditions of such bond.
' '(h) SPECIAL RULES.—For purposes of this section—
"(1) WITHDRAWAL BONDS.—In the case of any bond furnished
under this section which covers withdrawals but not operations—
"(A) such bond shall be in addition to the operations bond,
and
"(B) if distilled spirits are withdrawn under such bond, the
operations bond shall no longer cover liability for payment
of the tax on the spirits withdrawn.
"(2) ADJACENT WINE CELLARS.—

"(A) REQUIREMENTS.—No wine cellar shall be treated as
being adjacent to a distilled spirits plant unless—
"(i) such distilled spirits plant is qualified under this
subchapter for the production of distilled spirits, and

93 STAT. 277

93 STAT. 278

26 use 5354.

26 use 5001.

26 use 5002.

PUBLIC LAW 96-39—JULY 26, 1979
"(ii) such wine cellar and the distilled spirits plant are
operated by the same person (or, in the case of a
corporation, by such corporation and its controlled subsidiaries).
"(B) BOND IN LIEU OF WINE CELLAR BOND.—In the case of
any adjacent wine cellar, a bond furnished under this section
which covers operations at such wine cellar shall be in lieu of
any bond which would otherwise be required under section
5354 with respect to such wine cellar (other than supplemental bonds required under the second sentence of section
5854)."
(d) ALCOHOLIC INGREDIENTS ADDED TO DISTILLED SPIRITS TAXED AS
DISTILLED SPIRITS.—Paragraph (2) of section 5001(a) (relating to

products containing distilled spirits) is amended to read as follows:
"(2) PRODUCTS CONTAINING DISTILLED SPIRITS.—All products of
distillation, by whatever name known, which contain distilled
spirits, on which the tax imposed by law has not been paid, and
any alcoholic ingredient added to such products, shall be considered and taxed as distilled spirits."
(e) DEFINITIONS.—Section 5002 (relating to definitions) is amended
to read as follows:
"SEC. 5002. DEFINITIONS.

"(a) IN GENERAL.—For purposes of this chapter—
"(1) DISTILLED SPIRITS PLANT.—The term 'distilled spirits plant'
means an establishment which is qualified under subchapter B to
perform any distilled spirits operation.
"(2) DISTILLED SPIRITS OPERATION.—The term 'distilled spirits
operation' means any operation for which qualification is required under subchapter B.
"(3) BONDED PREMISES.—The term 'bonded premises', when
used with respect to distilled spirits, means the premises of a
distilled spirits plant, or part thereof, on which distilled spirits
operations are authorized to be conducted.
"(4) DISTILLER.—The term 'distiller' includes any person who—
"(A) produces distilled spirits from any source or substance,
"(B) brews or makes mash, wort, or wash fit for distillation
or for the production of distilled spirits (other than the
making or using of mash, wort, or wash in the authorized
production of wine or beer, or the production of vinegar by
fermentation),
"(C) by any process separates alcoholic spirits from any
fermented substance, or
"(D) making or keeping mash, wort, or wash, has a still in
his possession or use.
"(5) PROCESSOR.—

"(A) IN GENERAL.—The term 'processor', when used with
respect to distilled spirits, means any person who—
"(i) manufactures, mixes, or otherwise processes distilled spirits, or
"(ii) manufactures any article.
"(B) RECTIFIER, BOTTLER, ETC., INCLUDED.—The term 'processor' includes (but is not limited to) a rectifier, bottler, and
denaturer.
"(6)

CERTAIN OPERATIONS NOT TREATED AS PROCESSING.—In

applying paragraph (5), there shall not be taken into account—

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 279

"(A) OPERATIONS AS DISTILLER.—Any process which is the
operation of a distiller.
"(B) MIXING OF TAXPAID SPIRITS FOR IMMEDIATE CONSUMP-

TION.—Any mixing (after determination of tax) of distilled
spirits for immediate consumption.
"(C) USE BY APOTHECARIES.—Any process performed by an
apothecary with respect to distilled spirits which such apothecary uses exclusively in the preparation or making up of
medicines unfit for use for beverage purposes.
"(7) WAREHOUSEMAN.—The term 'warehouseman', when used
with respect to distilled spirits, means any person who stores
bulk distilled spirits.
"(8) DISTILLED SPIRITS.—The terms 'distilled spirits', 'alcoholic
spirits', and 'spirits' mean that substance known as ethyl alcohol,
ethanol, or spirits of wine in any form (including all dilutions and
mixtures thereof from whatever source or by whatever process
produced).
"(9) BULK DISTILLED SPIRITS.—The term 'bulk distilled spirits'
means distilled spirits in a container having a capacity in excess
of 1 wine gallon.
"(10) PROOF SPIRITS.—The term 'proof spirits' means that liquid
which contains one-half its volume of ethyl alcohol of a specific
gravity of 0.7939 at 60 degrees Fahrenheit (referring to water at
60 degrees Fahrenheit as unity).
"(11) PROOF GALLON.—The term 'proof gallon' means a United
States gallon of proof spirits, or the alcoholic equivalent thereof.
"(12) CONTAINER.-—The term 'container', when used with respect to distilled spirits, means any receptacle, vessel, or form of
package, bottle, tank, or pipeline used, or capable of use, for
holding, storing, transferring, or conveying distilled spirits.
"(13) APPROVED CONTAINER.—The term 'approved container',
when used with respect to distilled spirits, means a container the
use of which is authorized by regulations prescribed by the
Secretary.
"(14) ARTICLE.—Unless another meaning is distinctly expressed or manifestly intended, the term 'article' means any
substance in the manufacture of which denatured distilled spirits are used.
"(15) EXPORT.—The terms 'export', 'exported', and 'exportation' include shipments to a possession of the United States.
"(b) CROSS REFERENCES.—
"(1) For definition of wine gallon, see section 5041(c).
"(2) For definition of manufacturer of stills, see section 5102.
"(3) For definition of dealer, see section 5112(a).
"(4) For definitions of wholesale dealers, see section 5112.
"(5) For definitions of retail dealers, see section 5122.
"(6) For definitions of general application to this title, see chapter 79."

'^

' • '

SEC. 806. REMOVAL OF REQUIREMENT OF ON-SITE INSPECTION.

(a) SUPERVISION OF OPERATIONS.—Section 5202 (relating to supervi- ^^ ^sc 5202.
sion of operations) is amended to read as follows:
"SEC. 5202. SUPERVISION OF OPERATIONS.

"All operations on the premises of a distilled spirits plant shall be
conducted under such supervision and controls (including the use of
Government locks and seals) as the Secretary shall by regulations
prescribe."
Ot)) REMOVAL OF REQUIREMENT THAT REVENUE OFFICERS MUST B E
ASSIGNED TO THE PREMISES.—The first sentence of subsection (a) of

93 STAT. 280
26 use 5221.

26 use 5003.

PUBLIC LAW 96-39—JULY 26, 1979
section 5221 (relating to commencement, suspension, and resumption
of operations) is amended by striking out "until an internal revenue
officer has been assigned to the premises" and inserting in lieu
thereof "until written notice has been given to the Secretary stating
when operations will begin".
SEC. 807. TECHNICAL, CONFORMING, AND CLERICAL AMENDMENTS.
(a) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) SECTION 5003.—

(A) Paragraph (9) of section 5003 (relating to cross references to exemptions, etc.) is amended by striking out "section 5522(a) and".
(B) Section 5003 is amended by redesignating paragraph
(15) as paragraph (17) and by inserting after paragraph (14)
the following new paragraphs:

26 u s e 5004.

"(15) For provisions authorizing the withdrawal of distilled spirits without payment of tax for transfer to manufacturing bonded warehouses for
manufacturing for export, see section 5214(a)(6).
"(16) For provisions authorizing the withdrawal of articles from the
bonded premises of a distilled spirits plant free of tax when contained in
an article, see section 5214(a)(ll)."
(2) SECTION 5 0 0 4 . —

(A) Subsection (b) of section 5004 (relating to other property subject to lien) is hereby repealed.
(B) Subsection (c) of section 5004 is redesignated as subsection (b).
(C) Subparagraph (B) of section 5004(a)(2) is amended by
striking out "or (3)" and inserting in lieu thereof "(3), or
(11)".
26 u s e 5005.

(3) SECTION 5 0 0 5 . —

(A) Subsection (c) of section 5005 (relating to proprietors of
distilled spirits plants) is amended by striking out paragraph
(3) thereof.
(B) Subsection (d) of section 5005 is amended by striking
out "or (3)" and inserting in lieu thereof "(3), or (11)".
(C) Paragraph (1) of section 5005(f) is amended to read as
follows:
"(1) For provisions requiring bond covering operations at, and withdrawals from, distilled spirits plants, see section 5173."

26 use 5006.

26 use 5007.

(D) Subsection (f) of section 5005 is amended by adding at
the end thereof the following new paragraph:
"(6) For provisions relating to transfer of tax liability for wine, see section 5043(a)(1)(A)."
(4) SECTION 5006.—
(A) The first sentence of paragraph (1) of section 5006(b) is
amended by striking out ", notwithstanding that the time
specified in any bond given for the withdrawal of the spirits
entered in storage in such cask or package has not expired,
except" and inserting in lieu thereof "; except".
(B) Subsection (b) of section 5006 is amended by striking
out "in storage in internal revenue bond" each place it
appears and inserting in lieu thereof "on bonded premises".
(5) SECTION 500 7 .—Subsection (a) of section 5007 (relating to tax
on distilled spirits removed from bonded premises) is amended to
read as follows:
"(a) TAX ON DISTILLED SPIRITS REMOVED FROM BONDED PREMISES.—

The tax on domestic distilled spirits and on distilled spirits removed

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 281

from customs custody under section 5232 shall be paid in accordance 26 use 5232,
with section 5061."
^^^^•
(6) SECTION 5008.—
26 use 5008.
(A) Paragraph (1) of section 5008(a) (relating to distilled
spirits lost or destroyed in bond) is amended—
(i) by striking out "and" at the end of subparagraph
(A),
(ii) by striking out "subsection (b)(1)." at the end of
' ^subparagraph (B) and inserting in lieu thereof "subsection (b); and", and
(iii) by adding at the end thereof the following new
c ;
subparagraph:
"(C) UNEXPLAINED SHORTAGE.—In the case of an unexplained shortage of bottled distilled spirits,"
'
(B) Paragraph (5) of section 5008(a) is amended to read as
follows:
"(5) APPLICABILITY.—The provisions of this subsection shall
extend to and apply in respect of distilled spirits lost after the tax
was determined and before completion of the physical removal of
the distilled spirits from the bonded premises."
(C) Section 5008 is amended by striking out subsections (b),
(c), (d), and (e) and by inserting in lieu thereof the following:
"(b) VOLUNTARY DESTRUCTION.—The proprietor of the distilled
spirits plant or other persons liable for the tax imposed by this
chapter or by section 7652 with respect to any distilled spirits in bond
may voluntarily destroy such spirits, but only if such destruction is
under such supervision and under such regulations as the Secretary
may prescribe.
'
'='"(c) DISTILLED SPIRITS RETURNED TO BONDED PREMISES.—

"(1) IN GENERAL.—Whenever any distilled spirits withdrawn
from bonded premises on payment or determination of tax are
returned to the bonded premises of a distilled spirits plant under
section 5215(a), the Secretary shall abate or (without interest)
credit or refund the tax imposed under section 5001(a)(1) (or the
tax equal to such tax imposed under section 7652) on the spirits
so returned.
"(2) CLAIM MUST BE FILED WITHIN 6 MONTHS OF RETURN OF

SPIRITS.—No allowance under paragraph (1) may be made unless
claim therefor is filed within 6 months of the date of the return of
the spirits. Such claim may be filed only by the proprietor of the
distilled spirits plant to which the spirits were returned, and
shall be filed in such form as the Secretary may by regulations
prescribe."
^
(D) Section 5008 is amended by redesignating subsections
(f), (g), and (h) as subsections (d), (e), and (f), respectively.
(E) Subsection (e) of section 5008 (as redesignated by
subparagraph (D)) is amended—
(i) by striking out "subsections (b)(2), (c), and (d)," and
inserting in lieu thereof "subsection (c),", and
(ii) by striking out "under such subsections" and
inserting in lieu thereof "under such subsection".
(7) SECTION 5009.—Section 5009 (relating to drawback) is ?|??f^ ^„^„
hereby repealed.
26 use 5009.
(8) SECTION 5043.—Subparagraph (A) of section 5043(a)(1) (re- 26 use 5043.
lating to collection of taxes on wines) is amended by striking out
"between bonded wine cellars".
(9) SECTION 5 0 6 I . —

26 use 506L

93 STAT. 282
26 u s e 5061.

26 u s e 5064.

PUBLIC LAW 96-39—JULY 26, 1979
(A) The first sentence of subsection (a) of section 5061
(relating to method of collecting tax) and the first sentence of
subsection (b) of section 5061 are each amended by striking
out "rectified distilled spirits and wines,".
(B) Subsection (b) of section 5061 is amended by striking
out paragraph (3) and by redesignating paragraphs (4), (5),
(6), and (7) as paragraphs (3), (4), (5), and (6), respectively.
(10) SECTION 5064.—Section 5064 (relating to losses resulting
from disaster, vandalism, or malicious mischief) is amended—
(A) by striking out "rectified products," each place it
appears, and
(B) by striking out "RECTIFIED PRODUCTS," in the heading

26 u s e 5066.

26 u s e 5116.
26 u s e 5172.
Repeal.

26 u s e 5174.
26 u s e 5175.

of subsection (c).
(11) SECTION 5066.—
(A) The first sentence of paragraph (1) of section 5066(a)
(relating to distilled spirits for use of foreign embassies,
legations, etc.) is amended by striking out "distilled spirits
bottled in bond for export under the provisions of section
5233, or bottled distilled spirits returned to bonded premises
under section 5215(b)," and inserting in lieu thereof "bottled
distilled spirits".
(B) Subsection (b) of section 5066 is amended by striking
out "or domestic distilled spirits transferred to customs
bonded warehouses under section 5521(d)(2)".
(12) SECTION 5116.—Paragraph (1) of section 5116(b) (relating to
cross references) is amended by striking out "section 5205(a)(2)"
and inserting in lieu thereof "section 5205(a)(1)".
(13) SECTION 5172.—Section 5172 (relating to application for
registration) is amended by striking out "section 5171(a)" and
inserting in lieu thereof "section 5171(c)".
(14) SECTION 5174.—Section 5174 (relating to withdrawal
bonds) is hereby repealed.
(15) SECTION 5175.—
(A) Subsection (a) of section 5175 (relating to export bonds)
is amended by striking out "for storage therein pending
exportation".
(B) Subsection (b) of section 5175 (relating to export bonds)
is amended to read as follows:
"Ob) EXCEPTION WHERE PROPRIETOR WITHDRAWS SPIRITS FOR EXPOR-

26 u s e 5173.
26 u s e 5176.

26 u s e 5177.

TATION.—In the case of distilled spirits withdrawn from bonded
premises by the proprietor for exportation without payment of tax,
the bond of such proprietor required to be furnished under paragraph
(1) of section 5173(a) covering such premises shall cover such exportation, and subsection (a) shall not apply."
(16) SECTION 5176.—

(A) Subsection (a) of section 5176 (relating to new or
renewed bonds) is amended by striking out", 5174,".
(B) Subsection (b) of section 5176 is amended to read as
follows:
"Ot)) BONDS.—If the proprietor of a distilled spirits plant fails or
refuses to furnish a bond required under paragraph (1) of section
5173(a) or to renew the same, and neglects to immediately withdraw
the spirits and pay the tax thereon, the Secretary shall proceed to
'collect the tax."
(17) SECTION 5177.—Subsection (a) of section 5177 (relating to
other provisions relating to bonds) is amended by striking out ",
5174,".

PUBLIC LAW 96-39—JULY 26, 1979
(18) SECTION 5178.—Subparagraph (A) of section 5178(a)(1)
(relating to premises of distilled spirits plant) is amended by
striking out "section 5171(a)" and inserting in lieu thereof
"section 5171(c)".
(19) SECTION 5180.—The first sentence of subsection (a) of
section 5180 (relating to signs) is amended to read as follows:
"Every person engaged in distilled spirits operations shall place
and keep conspicuously on the outside of his place of business a
sign showing the name of such person and denoting the business,
or businesses, in which engaged."
(20) SECTION 5181.—Section 5181 (relating to cross references)
is amended by striking out "as rectifier, see section 5081, or".
(21) SECTION 5201.—Subsection (a) of section 5201 (relating to
regulation of operations) is amended to read as follows:
"(a) I N GENERAL.—Proprietors of distilled spirits plants shall conduct all operations authorized to be conducted on the premises of
such plants under such regulations as the Secretary shall prescribe."
(22) SECTION 5203.—
(A) The first sentence of section 5203(b) (relating to entry
and examination of premises) is amended by striking out
"where distilled spirits are produced or rectified" and inserting in lieu thereof "where distilled spirits operations are
carried on".
(B) The last sentence of section 5203(c) is amended by
striking out "not under the control of the internal revenue
officer in charge" and inserting in lieu thereof "on such
premises".
(C) The first sentence of section 5203(d) is amended by
striking out "where distilled spirits are produced or rectified" and inserting in lieu thereof "where distilled spirits
operations are carried on".
(23) SECTION 5204.—Subsection (a) of section 5204 (relating to
gauging) is amended by striking out ", in addition to those
specified in section 5202(f),".
(24) SECTION 5205.—
(A) Subsection (a) of section 5205 (relating to stamps) is
amended by striking out paragraph (1) and by redesignating
paragraphs (2) and (3) as paragraphs (1) and (2), respectively.
(B) Paragraph (1) of section 5205(a) (as redesignated by
subparagraph (A)) is amended—
(i) by striking out "OTHER" in the heading, and
(ii) by striking out subparagraph (D) and by redesignating subparagraphs (E), (F), and (G) as subparagraphs
(D), (E), and (F), respectively.
(C) Paragraph (2) of section 5205(c) is amended by striking
out the last sentence.
(D) Section 5205 is amended by striking out subsection (d)
and by redesignating subsections (e), (f), (g), (h), and (i) as
subsections (d), (e), (f), (g), and (h), respectively.
(E) Subsection (h) of section 5205 (as redesignated by
subparagraph (D)) is amended by striking out paragraph (4)
and by redesignating paragraph (5) as paragraph (4).
(25) SECTION 5207.—Section 5207 (relating to records and reports) is amended to read as follows:

93 STAT. 283
26 use 5178.

26 use 5180.

26 use 5i8i.
26 USC 5201.

26 use 5203.

26 use 5204.
26 use 5205.

:. ,
26 USC 5207.

93 STAT. 284
26 u s e 5207.

PUBLIC LAW 96-39—JULY 26, 1979
"SEC. 5207. RECORDS AND REPORTS.
"(a) RECORDS OF DISTILLED SPIRITS PLANT PROPRIETORS.—Every

i,

distilled spirits plant proprietor shall keep records in such form and
manner as the Secretary shall by regulations prescribe of:
"(1) The following production activities—
"(A) the receipt of materials intended for use in the
production of distilled spirits, and the use thereof,
"(B) the receipt and use of distilled spirits received for
redistillation, and
"(C) the kind and quantity of distilled spirits produced.
"(2) The following storage activities—
"(A) the kind and quantity of distilled spirits, wines, and
alcoholic ingredients entered into storage,
"(B) the kind and quantity of distilled spirits, wines, and
alcoholic ingredients removed, and the purpose for which
removed, and
"(C) the kind and quantity of distilled spirits returned to
storage.
"(3) The following denaturation activities—
"(A) the kind and quantity of denaturants received and
used or otherwise disposed of,
"(B) the kind and quantity of distilled spirits denatured,
and
"(C) the kind and quantity of denatured distilled spirits
removed.
"(4) The following processing activities—
"(A) all distilled spirits, wines, and alcoholic ingredients
received or transferred,
"(B) the kind and quantity of distilled spirits packaged or
bottled,
"(C) the kind and quantity of distilled spirits removed from
his premises, and
"(D) the receipt, use, and balance on hand of all stamps
required by law or regulations to be used by him.
"(5) Such additional information with respect to activities
described in paragraphs (1), (2), (3), and (4), and with respect to
other activities, as may by regulations be required.
"(b) REPORTS.—Every person required to keep records under subsection (a) shall render such reports covering his operations, at such
times and in such form and manner and containing such information,
as the Secretary shall by regulations prescribe.
"(c) PRESERVATION AND INSPECTION.—The records required by subsection (a) and a copy of each report required by subsection (b) shall be
kept on the premises where the operations covered by the record are
carried on and shall be available for inspection by any internal
revenue officer during business hours, and shall be preserved by the
person required to keep such records and reports for such period as
the Secretary shall by regulations prescribe.
"(d) PENALTY.—
"For penalty and forfeiture for refusal or neglect to keep records required under this section, or for false entries therein, see sections 3603
and 5615(5)."

26 u s e 5211.

., -,.;

(26) S E C T I O N 5 2 1 1 . —

(A) Paragraph (1) of the third sentence of section 5211
(relating to production and entry of distilled spirits) is
amended to read as follows:
"(1) deposit of such spirits on bonded premises for storage or
processing;".

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 285

(B) The third sentence of section 5211 is amended by 26 use 5211.
Inserting "and" at the end of paragraph (3), by striking out";
or" at the end of paragraph (4) and inserting in lieu thereof a
period, and by striking out paragraph (5).
(27) SECTION 5213.—The text of section 5213 (relating to with- 26 use 5213.
drawal of distilled spirits from bonded premises on determination of tax) is amended to read as follows:
"Subject to the provisions of section 5173, distilled spirits may be
withdrawn from the bonded premises of a distilled spirits plant on
payment or determination of tax thereon, in approved containers,
under such regulations as the Secretary shall prescribe."
(28) SECTION 5214.—
26 use 5214.
(A) Paragraph (6) of section 5214(a) is amended to read as
follows:
"(6) without pa5n]ient of tax for transfer to manufacturing
bonded warehouses for manufacturing in such warehouses for
export, as authorized by law; or".
(B) Paragraph (9) of section 5214(a) (relating to withdrawal
of distilled spirits from bonded premises free of tax or
without pa3mient of tax) is amended by striking out "in the
case of distilled spirits bottled in bond for export under
section 5233 or distilled spirits returned to bonded premises
under section 5215(b),".
(C) Paragraph (10) of section 5214(a) is amended by striking out "distillery operations" and inserting in lieu thereof
"distilled spirits operations".
(D) Subsection (a) of section 5214 is amended by striking
out the period at the end of paragraph (10) and inserting in
lieu thereof "; or", and by adding at the end thereof the
following new paragraph:
s
"(11) free of tax when contained in an article (within the
meaning of section 5002(a)(14))."
(E) Subsection (b) of section 5214 is amended by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7),
and (8), respectively, and by inserting after paragraph (3) the
following new paragraph:
"(4) For provisions relating: to withdrawal of distilled spirits without
payment of tax for manufacture in manufacturing bonded warehouse, see
19 U.S.C. 1311."
(29) SECTION 5215.—Section 5215 (relating to return of tax 26 use 5215.

determined distilled spirits to bonded premises) is amended to
read as follows:
"SEC. 5215. RETURN OF TAX DETERMINED DISTILLED SPIRITS TO
BONDED PREMISES.
"(a) GENERAL RULE.—Under such regulations as the Secretary may
prescribe, distilled spirits on which tax has been determined or paid
may be returned to the bonded premises of a distilled spirits plant but
only for destruction, denaturation, redistillation, reconditioning, or
rebottling.
"(b) APPLICABILITY OF CHAPTER TO DISTILLED SPIRITS RETURNED TO A
DISTILLED SPIRITS PLANT.—All provisions of this chapter applicable to

distilled spirits in bond shall be applicable to distilled spirits returned
to bonded premises under the provisions of this section on such
return.
"(c) RETURN OF BOTTLED DISTILLED SPIRITS FOR RELABELING AND

RESTAMPING.—Under such regulations as the Secretary shall prescribe, bottled distilled spirits withdrawn from bonded premises may

^

'

93 STAT. 286

PUBLIC LAW 96-39—JULY 26, 1979
be returned to bonded premises for relabeling or restamping, and the
tax under section 5001 shall not again be collected on such spirits.
"(d) CROSS REFERENCE.—

"For provisions relating to the abatement, credit, or refund of tax on
distilled spirits returned to a distilled spirits plant under this section, see
section 5008(c)."

26 use 5222.

26 use 5223.

26 use 5231.

26 use 5232.

26 use 5233.
26 use 5234.
26 use 5235.

26 use 5241.

Repeal.
5252
26 use 5273.

26 use 5291.

(30) SECTION 5222.—Subsection (c) of section 5222 (relating to
processing of distilled spirits containing extraneous substances)
is amended by striking out ", in the production facilities of a
distilled spirits plant".
(31) SECTION 5223.—
(A) Subsection (c) of section 5223 (relating to redistillation
of articles and residue) is amended by inserting "or on the
bonded premises of a distilled spirits plant" after "subchapter!)".
(B) Subsection (e) of section 5223 is amended by striking
out the last sentence thereof.
(32) SECTION 5231.—Section 5231 (relating to entry for deposit
in storage) is amended to read as follows:
"SEC. 5231. ENTRY FOR DEPOSIT.
"All distilled spirits entered for deposit on the bonded premises of a
distilled spirits plant under section 5211 shall, under such regulations
as the Secretary shall prescribe, be deposited in the facilities on the
bonded premises designated in the entry for deposit."
(33) SECTION 5232.—Subsection (b) of section 5232 (relating to
imported distilled spirits) is amended by striking out paragraph
(1) and by redesignating paragraphs (2) and (3) as paragraphs (1)
and (2), respectively.
(34) SECTION 5233.—Section 5233 (relating to bottling of distilled spirits in bond) is hereby repealed.
(35) SECTION 5234.—Section 5234 (relating to mingling and
blending of distilled spirits) is hereby repealed.
(36) SECTION 5235.—The second sentence of section 5235 (relating to bottling of alcohol for industrial purposes) is amended to
read as follows: "The provisions of section 5205(a)(1) shall not
apply to alcohol bottled, stamped, and labeled as such under this
section."
(37) SECTION 5241.—Section 5241 (relating to authority to
denature) is amended to read as follows:
"SEC. 5241. AUTHORITY TO DENATURE.
"Under such regulations as the Secretary shall prescribe, distilled
spirits may be denatured on the bonded premises of a distilled spirits
plant qualified for the processing of distilled spirits. Distilled spirits
to be denatured under this section shall be of such kind and such
degree of proof as the Secretary shall by regulations prescribe.
Distilled spirits denatured under this section may be used on the
bonded premises of a distilled spirits plant in the manufacture of any
article."
(38) SECTIONS 5251 AND 5252.—Part III of Subchapter C of
chapter 51 (sections 5251 and 5252, relating to operations on
bottling premises) is hereby repealed.
(39) SECTION 5273.—Paragraph (3) of section 5273(e) (relating to
sale, use, and recovery of denatured distilled spirits) is amended
by striking out "section 5002(a)(ll)" and inserting in lieu thereof
"section 5002(a)(14)".
(40) SECTION 5291.—Subsection (b) of section 5291 is amended—

PUBLIC LAW 96-39—JULY 26, 1979
(A) by striking out "section 5002(a)(6)" in paragraph (1)
and inserting in lieu thereof "section 5002(a)(8)^', and
(B) by striking out "section 5002(a)(ll)" in paragraph (2)
and inserting in lieu thereof "section 5002(a)(14)".
(41) SECTION 530I.—Paragraph (1) of section 5301(a) is amended
by striking out "section 5002(a)(6)" and inserting in lieu thereof
"section 5002(a)(8)".
(42) SECTION 5352.—The first sentence of section 5352 (relating
to taxpaid wine bottling house) is amended by striking out "at
premises other than the bottling premises of a distilled spirits
plant".
(43) SECTION 5361.—Section 5361 (relating to bonded wine
cellar operations) is amended by striking out "or receive on
standard wine premises only" and inserting in lieu thereof "or
receive on wine premises".
(44) SECTION 5362.—Subsection (b) of section 5362 (relating to
transfers of wine between bonded wine cellars) is amended to
read as follows:

93 STAT. 287
26 u s e 5002.

26 u s e 5301.
26 u s e 5352.

26 u s e 5361.

26 u s e 5362.

"(b) TRANSFERS OF WINE BETWEEN BONDED PREMISES.—

"(1) IN GENERAL.—Wine on which the tax has not been paid or
determined may, under such regulations as the Secretary shall
prescribe, be transferred in bond between bonded premises.
"(2) W I N E TRANSFERRED TO A DISTILLED SPIRITS PLANT MAY NOT

BE REMOVED FOR CONSUMPTION OR SALE AS WINE.—Any wiuC

transferred to the bonded premises of a distilled spirits plant—
"(A) may be used in the manufacture of a distilled spirits
product, and
"(B) may not be removed from such bonded premises for
consumption or sale as wine.
"(3) CONTINUED LIABIUTY FOR TAX.—The liability for tax on
wine transferred to the bonded premises of a distilled spirits
plant pursuant to paragraph (1) shall (except as otherwise
provided by law) continue until the wine is used in a distilled
spirits product.
"(4) TRANSFER IN BOND NOT TREATED AS REMOVAL FOR CONSUMPTION OR SALE.—For purposes of this chapter, the removal of wine

for transfer in bond between bonded premises shall not be
treated as a removal for consumption or sale.
"(5) BONDED PREMISES,—For purposes of this subsection, the
term 'bonded premises' means a bonded wine cellar or the
bonded premises of a distilled spirits plant."
(45) SECTION 5363.—Section 5363 (relating to taxpaid wine
bottling house operations) is amended by striking out the last 2
sentences thereof.
(46) SECTION 5364.—Section 5364 (relating to standard wine
premises) is hereby repealed.
(47) SECTION 5365.—Section 5365 (relating to segregation of
operations) is amended to read as follows:
"SEC. 5365. SEGREGATION OF OPERATIONS.

"The Secretary may require by regulations such segregation of
operations within the premises, by partitions or otherwise, as may be
necessary to prevent jeopardy to the revenue, to prevent confusion
between untaxpaid wine operations and such other operations as are
authorized in this subchapter, to prevent substitution with respect to
the several methods of producing effervescent wines, and to prevent
the commingling of standard wines with other than standard wines."

26 u s e 5363.
Repeal.
26 u s e 5364.
26 u s e 5365.

93 STAT. 288
26 use 5381.

26 use 5391.

Repeal.
^^ use
26 use 5551.

26 use 5601.

PUBLIC LAW 96-39—JULY 26, 1979
(48) SECTION 5381.—The last sentence of section 5381 (relating
to natural wine) is amended to read as follows: "Any wine
conforming to such definition except for having become substandard by reason of its condition shall be deemed not to be natural
wine, unless the condition is corrected."
(49) SECTION 5391.—Section 5391 (relating to exemption from
rectifying and spirits taxes) is amended to read as follows:
"SEC. 5391. EXEMPTION FROM DISTILLED SPIRITS TAXES.
"Notwithstanding any other provision of law, the tax imposed by
section 5001 on distilled spirits shall not, except as provided in this
subchapter, be assessed, levied, or collected from the proprietor of
any bonded wine cellar with respect to his use of wine spirits in wine
production, in such premises; except that, whenever wine or wine
spirits are used in violation of this subchapter, the applicable tax
imposed by section 5001 shall be collected unless the proprietor
satisfactorily shows that such wine or wine spirits were not knowingly used in violation of law."
(50) SECTIONS 5521,5522, AND 5523.—Part III of subchapter H of
chapter 51 (sections 5521,5522, and 5523, relating to manufacturing bonded warehouses) is hereby repealed.
(51) SECTION 5551.—Subsection (a) of section 5551 (relating to
general provisions relating to bonds) is amended by striking out
"bonded warehouseman, rectifier," each place it appears and
inserting in lieu thereof "warehouseman, processor,".
(52) SECTION 560i.—
(A) Paragraph (2) of section 5601(a) (relating to criminal
penalties) is amended to read as follows:
"(2) FAILURE TO FILE APPLICATION.—engages in the business of a
distiller or processor without having filed application for and
received notice of registration, as required by section 5171(c); or".
(B) Paragraphs (3) and (5) of section 5601(a) are each
amended by striking out "bonded warehouseman, rectifier,
or bottler" and inserting in lieu thereof "warehouseman, or
processor".
(C) Paragraph (4) of section 5601(a) is amended to read as
follows:
"(4) FAILURE OR REFUSAL OF DISTILLER, WAREHOUSEMAN, OR
PROCESSOR TO GIVE BOND.—carries on the business of a distiller,

warehouseman, or processor without having given bond as required by law; or".
(D) Paragraph (10) of section 5601(a) is amended to read as
follows:
"(10) UNLAWFUL PROCESSING.—engages in or carries on the
business of a processor—
"(A) with intent to defraud the United States of any tax on
the distilled spirits processed by him; or
"(B) with intent to aid, abet, or assist any person or
persons in defrauding the United States of the tax on any
distilled spirits; or".
(E) Paragraph (11) of section 5601(a) is amended to read as
follows:
"(11) UNLAWFUL PURCHASE, RECEIPT, OR PROCESSING OF DISTILLED SPIRITS.—purchases, receives, or processes any distilled

spirits, knowing or having reasonable grounds to believe that
any tax due on such spirits has not been paid or determined as
required by law; or".

PUBLIC LAW 96-39—JULY 26, 1979
(F) Subsection (b) of section 5601 is amended by striking
out "rectifier" and inserting in lieu thereof "processor".
(53) SECTION 5604.—
(A) Paragraph (1) of section 5604(a) (relating to penalties related to stamps, marks, brands, and containers) is
amended by striking out "section 5205(a)(2)" and inserting
in lieu thereof "section 5205(a)(1)".
(B) Paragraph (2) of section 5604(a) is amended—
(i) by striking out "section 5205(a) (1) or (2)" and
inserting in lieu thereof "section 5205(a)(1)", and
(ii) by striking out "section 5205(a)(3)" and inserting in
lieu thereof "section 5205(a)(2)".
(C) Paragraph (3) of section 5604(a) is amended by striking
out "section 5205(g)" and inserting in lieu thereof "section
5205(f)".
(D) Paragraph (6) of section 5604(a) is amended by striking
out "section 5205(a)(3)" and inserting in lieu thereof "section
5205(aX2)".
(E) Paragraph (13) of section 5604(a) is amended by striking out "section 5205(a) (2) and (3)" and inserting in lieu
thereof "section 5205(a)".
(54) SECTION 5610.—Section 5610 (relating to disposal of forfeited equipment and material for distilling) is amended by
striking out "or rectifying" and inserting in lieu thereof "or
processing".
(55) SECTION 5612.—Subsection (h) of section 5612 (relating to
forfeiture of taxpaid distilled spirits remaining on bonded premises) is amended to read as follows:
"(b) EXCEPTIONS.—Subsection (a) shall not apply in the case of—
"(1) distilled spirits in the process of prompt removal from
bonded premises on payment or determination of the tax; or
"(2) distilled spirits returned to bonded premises in accordance
with the provisions of section 5215."
(56) SECTION 5615.—Paragraph (5) of section 5615 (relating to
property subject to forfeiture) is amended by striking out "distillery, bonded warehouse, or rectifying or bottling establishment"
each place it appears and inserting in lieu thereof "distilled
spirits plant".
(57) SECTION 5663.—Section 5663 (relating to cross references)
is amended by striking out ", and for penalties for rectified
products, see part I".
(58) SECTION 5 6 8 1 . (A) Subsection (a) of section 5681 (relating to penalty
relating to signs) is amended by striking out "distilling,
warehousing of distilled spirits, rectifying, or bottling of
distilled spirits" and inserting in lieu thereof "distilled
spirits operations".
(B) Subsection (b) of section 5681 is amended—
(i) by striking out "distiller, warehouseman of distilled
spirits, rectifier, or bottler of distilled spirits" and inserting in lieu thereof "distiller, warehouseman, or
processor of distilled spirits",
(ii) by striking out "section 5171(a)" and inserting in
lieu thereof "section 5171(c)", and
(iii) by striking out "distiller, bonded warehouseman,
rectifier, bottler of distilled spirits" and inserting in lieu
thereof "distiller, warehouseman, or processor of distilled spirits".

59-194 O - 81

21 : QL3

93 STAT. 289
26 use 5601.
26 use 5604.

26 use 5610.

26 use 5612.

26 use 5615.

26 use 5663.
26 use 5681.

93 STAT. 290
26 use 5681.

26 use 5682.

26 use 5691.

PUBLIC LAW 96-39—JULY 26, 1979
(C) Subsection (c) of section 5681 is amended to read as
follows:
"(c) PREMISES WHERE NO SIGN IS PLACED OR KEPT.—Every person
who works in any distilled spirits plant or wholesale liquor establishment, on which no sign required by section 5115(a) or section 5180(a)
is placed or kept, and every person who knowingly receives at, or
carries or conveys any distilled spirits to or from any such distilled
spirits plant or wholesale liquor establishment, or who knov/ingly
carries or delivers any grain, molasses, or other raw material to any
distilled spirits plant on which such a sign is not placed and kept,
shall forfeit all vehicles, aircraft, or vessels used in carrying or
conveying such property and shall be fined not more than $1,000, or
imprisoned not more than 1 year, or both."
(D) Subsection (d) of section 5681 is amended by striking
out "distillery or rectifying establishment" and inserting in
lieu thereof "distilled spirits plant".
(59) SECTION 5682.—Sectiou 5682 (relating to penalty for breaking locks or gaining access) is amended by striking out "duly
authorized internal revenue officer, or" and inserting in lieu
thereof "authorized internal revenue officer or any approved
lock or seal placed thereon by a distilled spirits plant proprietor,
or who".
(60) SECTION 569I.—Subsection (a) of section 5691 (relating to
penalties for nonpayment of special taxes related to liquors) is
amended by striking out "rectifier,",
(b) CLERICAL AMENDMENTS.—

(1) The table of subparts for part I of subchapter A of chapter
51 is amended by striking out the item relating to subpart B.
(2) The table of sections for subpart A of part I of subchapter A
of chapter 51 is amended by striking out the item relatmg to
section 5009.
(3) The table of subparts for part II of subchapter A of chapter
51 is amended by striking out the item relating to subpart A.
(4) The table of sections for subchapter B of chapter 51 is
amended—
(A) by striking out the item relating to section 5173 and
inserting in lieu thereof the following:
"Sec. 5173. Bonds.";

(B) by striking out the item relating to section 5174; and
(C) by striking out the item relating to section 5178 and
inserting in lieu thereof the following:
"Sec. 5178. Distilled spirits plants."

(5) The table of parts for subchapter C of chapter 51 is amended
by striking out the item relating to part III.
(6) The table of sections for subpart C of part II of subchapter C
of chapter 51 is amended—
(A) by striking out the item relating to section 5231 and
inserting in lieu thereof the following:
"Sec. 5231. Entry for deposit.";

and
(B) by striking out the items relating to sections 5233 and
5234.
(7) The table of sections for part II of subchapter F of chapter 51
is amended by striking out the item relating to section 5364.
(8) The table of sections for part IV of subchapter F of chapter
51 is amended by striking out the item relating to section 5391
and inserting in lieu thereof the following:

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 291

"Sec. 5391. Exemption from distilled spirits taxes."

(9) The table of parts for subchapter H of chapter 51 is
amended by striking out the item relating to part I I I
SEC. 808. TRANSITIONAL RULES RELATING TO DETERMINATION AND
PAYMENT OF TAX.
(a) LiABiuTY FOR PAYMENT OF TAX.—Except as Otherwise provided 26 USC 5061
in this section, the tax on all distilled spirits which have been "°*®withdrawn from bond on determination of tax and on which tax has
not been paid by the close of December 31,1979, shall become due on
January 1,1980, and shall be payable in accordance with section 5061
of the Internal Revenue Code of 1954.
Ante, p. 281.
(b) TREATMENT OF CONTROLLED STOCK AND BULK WINE.—
(1) ELECTION WITH RESPECT TO CONTROLLED STOCK.—The propri-

etor of a distilled spirits plant may elect to convert any distilled
spirits or wine which on January 1, 1980, is controlled stock.
(2) ELECTION WITH RESPECT TO WINE.—The proprietor of a
distilled spirits plant may elect to convert any bulk wine which
on January 1,1980, is on the premises of a distilled spirits plant.
(3) EFFECT OF ELECTION.—If an election under paragraph (1) or
(2) is in effect with respect to any controlled stock or wine—
(A) any distilled spirits, wine, or rectification tax previously paid or determined on such controlled stock or wine shall
be abated or (without interest) credited or refunded under
such regulations as the Secretary shall prescribe, and
(B) such controlled stock or wine shall be treated as
distilled spirits or wine on which tax has not been paid or
determined.
(4) MAKING OF ELECTIONS.—The elections under this subsection
shall be made at such time and in such manner as the Secretary
shall by regulations prescribe.
(c) TAXPAID STOCK.—
(1) TAXPAID STOCK MAY REMAIN ON BONDED PREMISES DURING

1980.—Section 5612(a) of the Internal Revenue Code of 1954 26 use 5612.
(relating to forfeiture of taxpaid distilled spirits remaining on
bonded premises) shall not apply during 1980.
(2) SEPARATION OF TAXPAID STOCK.—All distilled spirits and

wine on which tax has been paid and which are on the bonded
premises of a distilled spirits plant shall be physically separated
from other distilled spirits and wine. Such separation shall be by
the use of separate tanks, rooms, or buildings, or by partitioning,
or by such other methods as the Secretary finds will distinguish
such distilled spirits and wine from other distilled spirits and
wine on the bonded premises of the distilled spirits plant.
(d) RETURN OF DISTILLED SPIRITS PRODUCTS CONTAINING TAXPAID

WINE.—With respect to distilled spirits returned to the bonded
premises of distilled spirits plants during 1980, section 5008(cXl) of
the Internal Revenue Code of 1954 (relating to refunds for distilled Ante, p. 281.
spirits returned to bonded premises) shall be treated as including a
reference to section 5041 of such Code.
(e) RETURN OF DISTILLED SPIRITS PRODUCTS CONTAINING OTHER
ALCOHOUC INGREDIENTS.—With respect to distilled spirits to which

alcoholic ingredients other than distilled spirits have been added and
which have been withdrawn from a distilled spirits plant before
January 1,1980, section 5215(a) of the Internal Revenue Code of 1954 Ante, p. 285.
shall apply only if such spirits are returned to the distilled spirits
plant from which withdrawn.

\;

93 STAT. 292

PUBLIC LAW 96-39—JULY 26, 1979
(f) SECRETARY DEFINED.—For purposes of this section, the term
"Secretary" means the Secretary of the Treasury or his delegate.
SEC. 809. TRANSITIONAL RULES RELATING TO ALL-IN-BOND METHOD.

26 u s e 5171
note.
26 u s e 5171.

(a) N E W APPUCATION REQUIRED.—

(1) I N GENERAL.—For purposes of section 5171 of the Internal
Revenue C6de of 1954 (relating to establishment of distilled
spirits plants), each person who intends to continue any distilled
spirits operation at a premises after December 31,1979, shall be
treated as intending to establish a distilled spirits plant on such
premises on January 1,1980.
(2) CURRENT REGISTRATION TO REMAIN IN EFFECT.—Notwith-

standing paragraph (1), the registration of any person under
section 5171 of the Internal Revenue Code of 1954 which is in
effect on December 31, 1979, shall remain in effect until final
action on the application required by paragraph (1).
(b) CONTINUING OPERATIONS AT EXISTING PREMISES.—With respect
to any operation which was permitted to be conducted on May 1,1979,
at premises which were registered on such date under section 5171 of
the Internal Revenue Code of 1954, the determination of whether
such premises qualify for registration under such section as a
distilled spirits plant shall be made without regard to whether or
not—
(1) the person engaged in operations at such premises is
registered under such section with respect to such premises as a
distiller or warehouseman, and
(2) such premises meet the minimum capacity £md level of
activity requirements for that type of operation.
26 u s e 5173
note.

(c) N E W BOND REQUIRED.—For purposes of section 5173 of the

Internal Revenue Code of 1954 (relating to bonds), each person who
intends to continue operation at a premises after December 31,1979,
shall be treated as intending to establish a distilled spirits plant on
such premises on January 1,1980.
SEC. 810. EFFECTIVE DATE.

26 u s e 5001
note.

The amendments made by this title shall take effect on January 1,
1980.
Subtitle B—Tariff Treatment
SEC. 851. REPEAL OF PROVISION THAT EACH WINE GALLON IS TO BE
COUNTED AS AT LEAST ONE PROOF GALLON.

19 use 1202.

19 use 1202.

The first sentence of headnote 2 to part 12 of schedule 1 of the
Tariff Schedules of the United States is amended to read as follows:
"The standard for determining the proof of brandy and other spirits
or liquors of £iny kind when imported is the same as that which is
defined in the laws relating to internal revenue."
SEC. 852. CHANGES IN RATES OF DUTY.
So much of subpart D of part 12 of schedule 1 of the Tariff
Schedules of the. United States as follows headnote 1 is amended to
read as follows:
Aquavit:
168.04

In containers each holding not over 1 gallon.

$2.20 per
proof gal.

168.06

In containers each holding over 1 gallon.

42t per proof
gal-

Arrack:
168.09

$7.62 per
proof gal.
$5.00 per
proof gal.

93 STAT. 293

PUBLIC LAW 96-39—JULY 26, 1979
In containers each holding not over 1 gallon
168.11

168.12

In containers each holding over 1 gallon
Bitters of all kinds containing spirits:
Not fit for use as beverages:
In containers each holding not over 1 gallon.

168.13

In containers each holding over 1 gallon,

168.14

Pit for use as beverages:
In containers each holding not over 1 gallon.

168.16

In containers each holding over 1 gallon.

168.36

Brandy:
Pisco and Singani:
In containers each holding not over 1 gallon:
Valued not over $9 per gallon

168.37

168.39
168.41

168.43
168.44
168.49

168.51
168.53

168.56
168.58
168.60

168.62
168.63

168.65
168.67

168.69

Valued over $9 per gallon .
In containers each holding over 1 gallon:
Valued not over $9 per gallon
Valued over $9 per gallon .

$2.28 per
proof gal.
$1.00 per
proof gal.

$6.72 per
proof gal.
$5.00 per
proof gal.

$1.04 per
proof gal.
94t per proof

$5.56 per
proof gal.
$5.00 per
proof gal.

$16.34 per
proof gal.
50t per proof

$27.32 per
proof gal.
$5.00 per
proof gal.

$1.86 per
proof gal.
$2.56 per
proof gal.

$6.72 per
proof gal.
$6.72 per
proof gal.

50( per proof
gal.
$1.00 per
proof gal.

$5.00 per
proof gal.
$5.00 per
proof gal.

Other:
In containers each holding not over 1 gallon:
Valued not over $9 per gallon
$3.40 per
proof gal.
Valued over $9 but not over $13 per gallon.. $4.19 per
proof gal.
Valued over |13 per gallon
$4.19 per
proof gal.
In containers each holding over 1 gallon:
Valued not over $9 per gallon
50$ per proof
gal.
Valued over $9 per gallon .
$1.00 per
proof gal.
Ciordials, liqueurs, kirschwasser, and ratafia:
In containers each holding not over 1 gallon.
$5.21 per
proof gal.
In containers each holding over 1 gallon
50« per proof
gal.
Ethyl alcohol for beverage purposes
$1.12 per
proof gal.
Gin:
In containers each holding not over 1 gallon.
$2.29 per
proof gal.
In containers each holding over 1 gallon
50* per proof
gal.
Rum (including cana paraguaya):
In containers each holding not over 1 gallon.
$3.74 per
proof gal.
In containers each holding over 1 gallon.
$1.75 per
proof gal.
Whiskey:
Irish and Scotch:
In containers each holding not over 1 gallon.
$2.30 per
proof gal.

$8.88 per
proof gal
$8.88 per
proof gal.
$8.88 per
proof gal.
$5.00 per
proof gal
$5.00 per
proof gal.
$11.64 per
proof gal.
$5.00 per
proof gal.
$5.00 per
proof gal.
$7.52 per
proof gal.
$5.00 per
proof gal.
$7.52 per
proof gal.
$5.00 per
proof gal.

$7.52 per
proof gal.

93 STAT. 294

PUBLIC LAW 96-39—JULY 26, 1979
In containers each holding over 1 gallon

168.71

s u p e r proof
gal.

$5.00 per
proof gal.

Other:
168.73

In containers each holding not over 1 gallon....

168.75
In containers each holding over 1 gallon
168.77
168.79

Tequila:
In containfln each holding not over 1 gallon

$7.74 per
$2.59 per
proof gal.
proof gal.
62t per ptooi $5.00 per
proof gal.
gal.
$2.27 per
proof gal.
$1.25 per
proof gal.

$6.35 per
proof gal.
$5.00 per
proof gal.

$2.56 per
proof gal.
$2.56 per
proof gal.
$1.25 per
proof gal.

$6.72 per
proof gal.
$6.72 per
proof gal.
$5.00 per
proof gal.

$2.56 per
proof gal.
$1.25 per
proof gal.

$6.72 per
proof gal
$5.00 per
proof gal

$9.08 per
proof gal.
$1.25 per
proof gal.

$15.33 per
proof gal
$5.00 per
proof gal.

$5.75 per
proof gal.
$2.50 per
proof gal.

$8.88 per
proof gal.
$5.00 per
proof gal.

In contuners each holding over 1 gallon
168.81
168.83
168.85

Vodka:
In containers each holding not over 1 gallon:
Valued not over $7.75 per gallon
Valued over $7.75 per gallon
In containers each holding over 1 gallon

168.87
168.89

Other spirits, and preparations in chief value of distilled
spirits, fit for use as beverages or for beverage purposes:
Spirits:
In contiuners each holding not over 1 gallon
In containers each holding over 1 gallon
Other:

168.91
168.93

168.95
168.97

In containers each holding not over 1 gallon
In containers each holding over 1 gallon
Imitations of brandy and other spirituous beverages:
In containers each holding not over 1 gallon
In containers each holding over 1 gallon

SEC. 853. EFFECTIVE DATE FOR SECTIONS 851 AND 852.
19 u s e 1202
note.

The amendments made by sections 851 and 852 shall apply to
articles entered, or withdrawn from warehouse, for consumption
after December 31,1979.
SEC. 854. REVIEW OF INTERNATIONAL TRADE IN ALCOHOLIC BEVERAGES.

19 u s e 2135
note.
Report to
eongress.

(a) REVIEW.—The President shall review foreign tariff and nontariff barriers affecting United States exports of alcoholic beverages.
Not later than January 1, 1982, the President shall report to the
Congress the results of his review.
(b) WITHDRAWAL OF CONCESSIONS.—If, as the result of his review

19 u s e 2111.

under subsection (a), the President determines that a foreign country
or instrumentality has not implemented concessions to the United
States affecting sJcoholic beverages which were negotiated in trade
agreements entered into before January 3,1980, under the authority
of title I of the Trade Act of 1974, the President shall withdraw,
suspend, or modify the application of substantially equivalent trade
agreement obligations of benefit to such foreign country or instrumentality under section 125 of the Trade Act of 1974 (19 U.S.C. 2135).
(c) FURTHER NEGOTIATIONS TO REMOVE BARRIERS.—If, as the result
of his review under subsection (a), the President determines that

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 295

foreign tariff or nontariff barriers are unduly burdening or restricting the United States exports of alcoholic beverages, he shall enter
into negotiations under the Trade Act of 1974 to eliminate or reduce 19 u s e 2101.
such barriers.
SEC. 855. AUTHORITY TO PROCLAIM EXISTING RATES FOR CERTAIN
ITEMS.

(a) GENERAL RULE.—In the case of any item set forth in subpart D of
part 12 of schedule 1 of the Tariff Schedules of the United States, as
amended by section 852 of this Act, whenever the President determines that adequate reciprocal concessions have been received therefor under a trade agreement entered into under the Trade Act of
1974, he may (notwithstanding section 109 of such Act) proclaim that
the rate of duty applicable to such item shall be the rate of duty
appearing in rate column numbered 1 on January 1, 1979, for the
comparable item, determined on a proof gallon basis. For purposes of
sections 101 and 601(7) of the Trade Act of 1974, the rates of duty
proclaimed under the preceding sentence shall be deemed to be the
rates of duty existing on January 1,1975.

19 u s e 1202
note.
Ante, p. 292.

19 u s e 2101.

19 u s e 2111,
2481.

(b) TERMINATION AND WITHDRAWAL AUTHORITY.—For purposes of

section 125 of the Trade Act of 1974, any rate of duty proclaimed 19 u s e 2135.
under subsection (a) shall be deemed to be a trade agreement
obligation entered into under the Trade Act of 1974 which is of 19 u s e 2101.
benefit to a foreign country or instrumentality. In the case of any
item affected by any such proclamation, the last sentence of subsection (c) of such section 125 shall be applied as if it authorized (in
addition to any increase authorized therein) an increase up to the
rate of duty for such item set forth in rate column numbered 1 of
subpart D of part 12 of schedule 1 of the Tariff Schedules of the
Ante, p. 292.
United States, as amended by section 852 of this Act.
SEC. 856. AMENDMENTS OF SECTION 311 OF THE TARIFF ACT OF 1930.
(a) CERTAIN TRANSFERS TO WAREHOUSES PENDING EXPORTATION.—

19 u s e 1311

(b) REMOVAL OF REFERENCE TO RECTIFICATION TAXES.—Effective

Repeal.

In the case of articles described in section 5522(a) of the Internal note.
Revenue Code of 1954 (as in effect before its repeal by section 26 u s e 5522.
807(a)(50) of the Distilled Spirits Tax Revision Act of 1979), the first Ante, p. 288.
sentence of the eighth paragraph of section 311 of the Tariff Act of
1930 (19 U.S.C. 1311) shall be applied as if such first sentence did not
include the phrase "at an exterior port".
January 1, 1980, the second proviso to the last paragraph of section 19 u s e 1311.
311 of the Tariff Act of 1930 is hereby repealed.
TITLE IX—ENFORCEMENT OF UNITED STATES RIGHTS
SEC. 901. ENFORCEMENT OF UNITED STATES RIGHTS UNDER TRADE
AGREEMENTS AND RESPONSE TO CERTAIN FOREIGN PRACTICES.

Chapter 1 of title III of the Trade Act of 1974 (19 U.S.C. 2411) is
amended to read as follows:

"CHAPTER 1—ENFORCEMENT OF UNITED STATES RIGHTS
UNDER TRADE AGREEMENTS AND RESPONSE TO CERTAIN FOREIGN TRADE PRACTICES
"SEC. 301. DETERMINATIONS AND ACTION BY PRESIDENT.

"(a) DETERMINATIONS REQUIRING ACTION.—If the President determines that action by the United States is appropriate—

19 u s e 2411.

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 296

"(1) to enforce the rights of the United States under any trade
agreement; or
"(2) to respond to any act, policy, or practice of a foreign
country or instrumentality that—
"(A) is inconsistent with the provisions of, or otherwise
denies benefits to the United States under, any trade agreement, or
"(B) is unjustifiable, unreasonable, or discriminatory and
burdens or restricts United States commerce;
the President shall take all appropriate and feasible action within his
power to enforce such rights or to obtain the elimination of such act,
policy, or practice. Action under this section may be taken on a
nondiscriminatory basis or solely against the products or services of
the foreign country or instrumentality involved.
"(b) OTHER ACTION.—Upon making a determination described in
subsection (a), the President, in addition to taking action referred to
in such subsection, may—
"(1) suspend, withdraw, or prevent the application of, or
refrain from proclaiming, benefits of trade agreement concessions to carry out a trade agreement with the foreign country or
instrumentality involved; and
"(2) impose duties or other import restrictions on the products
of, and fees or restrictions on the services of, such foreign country
or instrumentality for such time as he determines appropriate.
Publication in
Federal
Register.

Publication in
Federal
Register.

"(c) PRESIDENTIAL PROCEDURES.—
"(1) ACTION ON OWN MOTION.—If

the President decides to take
action under this section and no petition requesting action on the
matter involved has been filed under section 302, the President
shall publish notice of his determination, including the reasons
for the determination in the Federal Register. Unless he determines that expeditious action is required, the President shall
provide an opportunity for the presentation of views concerning
the taking of such action.
"(2) ACTION REQUESTED BY PETITION.—Not later than 21 days
after the date on which he receives the recommendation of the
Special Representative under section 304 with respect to a
petition, the President shall determine what action, if any, he
will take under this section, and shall publish notice of his
determination, including the reasons for the determination, in
the Federal Register.

"(d) SPECIAL PROVISIONS.—
"(1) DEFINITION OF COMMERCE.—For

purposes of this section,
the term 'commerce' includes, but is not limited to, services
associated with international trade, whether or not such services
are related to specific products.
"(2) VESSEL CONSTRUCTION SUBSIDIES.—An act, policy, or practice of a foreign country or instrumentality that burdens or
restricts United States commerce may include the provision,
directly or indirectly, by that foreign country or instrumentality
of subsidies for the construction of vessels used in the commercial
transportation by water of goods between foreign countries and
the United States.

19 u s e 2412.

"SEC. 302. PETITIONS FOR PRESIDENTIAL ACTION.
"(a)

FiuNG OF PETITION WITH SPECIAL REPRESENTATIVE.—Any

interested person may file a petition with the Special Representative
for Trade Negotiations (hereinafter in this chapter referred to as the
'Special Representative') requesting the President to take action

PUBLIC LAW 96-39—JULY 26, 1979
under section 301 and setting forth the allegations in support of the
request. The Special Representative shall review the allegations in
the petition and, not later than 45 days after the date on which he
received the petition, shall determine whether to initiate an investigation.
"(b) DETERMINATIONS REGARDING PETITIONS.—
"(1) NEGATIVE DETERMINATION.—If the Special Representative

determines not to initiate an investigation with respect to a
petition, he shall inform the petitioner of his reasons therefor
and shall publish notice of the determination, together with a
summary of such reasons, in the Federal Register.

93 STAT. 297
Allegations,
review.

Publication in
Federal
Register.

"(2) AFFIRMATIVE DETERMINATION.—If the Special Representa-

tive determines to initiate an investigation with respect to a
petition, he shall initiate an investigation regarding the issues
raised. The Special Representative shall publish the text 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 after the date of the 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.
"SEC. 303. CONSULTATION UPON INITIATION OF INVESTIGATION.

Publication in
Federal
Register.
Hearing.

19 u s e 2413.

"On the date an affirmative determination is made under section
302(b) with respect to a petition, the Special Representative, on behalf
of the United States, shall request consultations with the foreign
country or instrumentality concerned regarding issues raised in the
petition. If the case involves a trade agreement and a mutually
acceptable resolution is not reached during the consultation period, if
any, specified in the trade agreement, the Special Representative
shall promptly request proceedings on the matter under the formal
dispute settlement procedures provided under such agreement. The
Special Representative shall seek information and advice from the
petitioner and the appropriate private sector representatives provided for under section 135 in preparing United States presentations 19 USC 2155.
for consultations and dispute settlement proceedings.
"SEC. 304. RECOMMENDATIONS BY THE SPECIAL REPRESENTATIVE.

19 USC 2414.

"(a) RECOMMENDATIONS.—

"(1) I N GENERAL.—On the basis of the investigation under
section 302, and the consultations (and the proceedings, if applicable) under section 303, and subject to subsection (b), the Special
Representative shall recommend to the President what action, if
any, he should take under section 301 with respect to the issues
raised in the petition. The Special Representative shall make
that recommendation not later than—
"(A) 7 months after the date of the initiation of the
investigation under section 302(b)(2) if the petition alleges
only an export subsidy covered by the Agreement on Interpretation and Application of Articles VI, XVI, and XXIII of
the General Agreement on Tariffs and Trade (relating to 26 UST 3083.
subsidies and countervailing measures and hereinafter referred to in this section as the 'Subsidies Agreement');

93 STAT. 298

Ante, p. 147.
'•"'

. . . ..

t
'^

PUBLIC LAW 96-39—JULY 26, 1979
"(B) 8 months after the date of the investigation initiation
if the petition alleges any matter covered by the Subsidies
Agreement other than only an export subsidy;
"(C) in the case of a petition involving a trade agreement
approved under section 2(a) of the Trade Agreements Act of
1979 (other than the Subsidies Agreement), 30 days after the
dispute settlement procedure is concluded; or
"(D) 12 months after the date of the investigation initiation in any case not described in subparagraph (A), (B), or
(C).
"(2) SPECIAL RULE.—In the case of any petition—
"(A) an investigation with respect to which is initiated on
or after the date of the enactment of the Trade Agreements
Act of 1979 (including any petition treated under section 903
of that Act as initiated on such date); and
"(B) to which the 12-month time limitation set forth in
subparagraph (D) of paragraph (1) would but for this paragraph apply;
if a trade agreement approved under section 2(a) of such Act of
1979 that relates to any allegation made in the petition applies
between the United States and a foreign country or instrumentality before the 12-month period referred to in subparagraph (B)
expires, the Special Representative shall make the recommendation required under paragraph (1) with respect to the petition not
later than the close of the period specified in subparagraph (A),
(B), or (C), as appropriate, of such paragraph, and for purposes of
such subparagraph (A) or (B), the date of the application of such
trade agreement between the United States and the foreign
country or instrumentality concerned shall be treated as the date
on which the investigation with respect to such petition was
initiated; except that consultations and proceedings under section 303 need not be undertaken within the period specified in
such subparagraph (A), (B), or (C), as the case may be, to the
extent that the requirements under such section were complied
with before such period begins.
"(3) REPORT IF SETTLEMENT DELAYED.—In any case in which a
dispute is not resolved before the close of the minimum dispute
settlement period provided for in a trade agreement referred to
in paragraph (1)(C) (other than the Subsidies Agreement), the
Special Representative, within 15 days after the close of such
period, shall submit a report to Congress setting forth the
reasons why the dispute was not resolved within the minimum
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 if all
stages of the formal dispute settlement procedures are carried
out within the time limitations specified in the agreement, but
computed without regard to any extension authorized under the
agreement of any stage.
"(b)

CONSULTATION BEFORE RECOMMENDATION.—Before

recom-

mending that the President take action under section 301 with
respect to the treatment of any product or service of a foreign country
or instrumentality which is the subject of a petition filed under
section 302, the Special Representative, unless he determines that
expeditious action is required—
"(1) shall provide opportunity for the presentation of views,
including a public hearing if requested by any interested person;

PUBLIC LAW 96-39—JULY 26, 1979
"(2) shall obtain advice from the appropriate private sector
advisory representatives provided for under section 135; and
"(3) may request the views of the International Trade Commission regarding the probable impact on the economy of the United
States of the taking of action with respect to such product or
service.
If the Special Representative does not comply with paragraphs (1)
and (2) because expeditious action is required, he shall, after making
the recommendation concerned to the President, comply with such
paragraphs.
"SEC. 305. REQUESTS FOR INFORMATION.
"(a) IN GENERAL.—Upon receipt of written request therefor from
any person, the Special 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 government or instrumentality with respect to
particular merchandise, to the extent that such information is
available to the Special 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) IF INFORMATION NOT AVAILABLE.—If information that is requested by an interested party under subsection (a) is not available to
the Special Representative or other Federal agencies, the Special
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 the refusal.
"SEC. 306. ADMINISTRATION.
' 'The Special Representative shall—
"(1) issue regulations concerning the filing of petitions and the
conduct of investigations and hearings under this chapter;
"(2) keep the petitioner regularly informed of all determinations and developments regarding his case under this section,
including the reasons for any undue delays; and
"(3) submit a report to the House of Representatives and the
Senate semiannually describing the petitions filed and the determinations made (and reasons therefor) under section 302, developments in and current status of each such proceeding, and the
actions taken, or the reasons for no action, by the President
under section 301.".
SEC. 902. CONFORMING AMENDMENTS.

93 STAT. 299
19USC2155.

19 USC 2415.

;.:.,.
19 USC 2416.
., K
Report to
•^o'lgr^ss.

(a) ELIMINATION OF CONGRESSIONAL PROCEDURES.—Chapter 5 of

title I of the Trade Act of 1974 is amended as follows:
19 USC 2191.
(1) Section 152(a) is amended—
19 USC 2192.
(A) by amending paragraph (1)(A) to read as follows:
"(A) a concurrent resolution of the two Houses of the
Congress, the matter after the resolving clause of which is as
follows: 'That the Congress does not approve the action
taken by, or the determination of, the President under
section 203 of the Trade Act of 1974 transmitted to the 19 USC 2253.

93 STAT. 300

PUBLIC LAW 96-39—JULY 26, 1979
• "

Congress on
.', the blank space being filled with the
appropriate date; and";
(B) by striking out "paragraph (3)," in paragraph (1)(B) and
inserting in lieu thereof "paragraph (2),";
(C) by striking out paragraph (2); and
(D) by redesignating paragraph (3) as paragraph (2).
(2) Section 154 is amended by striking out "302(a)," in subsection (a); and by striking out "302(b)," in subsection (b).
(b) TABLE OF CONTENTS.—The table of contents of the Trade Act of
1974 is amended by striking out

19 use 2194.

J

; .

"CHAPTER 1—FOREIGN IMPORT RESTRICTIONS AND EXPORT SUBSIDIES

"Sec. 301. Responses to certain trade practices of foreign governments.
"Sec. 302. Procedure of or congressional disapproval of certain actions taken under
section 301.";

and inserting in lieu thereof the following:
"CHAPTER 1—ENFORCEMENT OF UNITED STATES RIGHTS UNDER TRADE AGREEMENTS
AND RESPONSE TO CERTAIN FOREIGN TRADE PRACTICES

"Sec.
"Sec.
"Sec.
"Sec.
"Sec.
"Sec.

301. Determinations and action by President.
302. Petitions for Presidential action.
303. Consultation upon initiation of investigation.
304. Recommendations by the Special Representative.
305. Requests for information.
306. Administration.".

'

S. Con. Res. 33, p.
(c) TRADE EXPANSION AcT OF 1962.—Section 242 of the Trade
19 use 187?'
Expansion Act of 1962 (19 U.S.C. 1982) is amended by striking out
"subsections (c) and (d)" each place it appears and inserting in lieu
thereof "section 302(b)(2)".
SEC. 903. EFFECTIVE DATE.
19 use 2411
The amendments made by sections 901 and 902 shall take effect on
^° ^'
the date of the enactment of this Act. Any petition for review filed
with the Special Representative for Trade Negotiations under section
Ante, p. 295.
301 of the Trade Act of 1974 (as in effect on the day before such date of
enactment) and pending on such date of enactment shall be treated as
an investigation initiated on such date of enactment under section
Ante, p. 296.
302(b)(2) of the Trade Act of 1974 (as added by section 901 of this Act)
and any information developed by, or submitted to, the Special
Representative before such date of enactment under the review shall
be treated as part of the information developed during such investigation.
TITLE X—JUDICIAL REVIEW
SECIOOI. JUDICIAL REVIEW.
(a) REVIEW PROCEDURES APPLICABLE TO COUNTERVAILING DUTY AND

ANTIDUMPING DUTY MATTERS.—Title V of the Tariff Act of 1930 (19

U.S.C. 1501, et seq.) is amended by inserting after section 516 the
following new section:
19 u s e 1516a.

"SEC. 516A. JUDICIAL REVIEW IN COUNTERVAILING DUTY AND ANTIDUMPING DUTY PROCEEDINGS.
"(a) REVIEW OF DETERMINATION.—
"(1) REVIEW OF CERTAIN DETERMINATIONS.— Within

••

*

30 days
after the date of publication in the Federal Register of notice of—

PUBLIC LAW 96-39—JULY 26, 1979
"(A) a determination by the Secretary or the administering authority, under section 303(a)(3), 702(c), or 732(c) of this
Act, not to initiate an investigation,
"(B) a determination by the administering authority,
under section 703(c) or 733(c) of this Act, that a case is
extraordinarily complicated,
"(C) a determination by the administering authority or the
Commission, under section 751(b) of this Act, not to review
an agreement or a determination based upon changed circumstances,
"(D) a negative determination by the Commission, under
section 703(a) or 733(a) of this Act, as to whether there is
reasonable indication of material injury, threat of material
injury, or material retardation, or
"(E) a negative determination by the administering authority under section 703(b) or 733(b) of this Act,
an interested party who is a party to the proceeding in connection with which the matter arises may commence an action in
the United States Customs Court by filing concurrently a summons and complaint, each with the content and in the form,
manner, and style prescribed by the rules of that court, contesting any factual findings or legal conclusions upon which the
determination is based.
"(2) REVIEW OF DETERMINATIONS ON RECORD.—

93 STAT. 301

i^nS w ^152
^g^ ' ^^'
Ante, pp. 153,
163.
Ante, p. 175.

*-

"(A) IN GENERAL.—Within thirty days after the date of
publication in the Federal Register of—
"(i) notice of any determination described in clause
(ii), (iii), (iv), or (v) of subparagraph (B), or
"(ii) an antidumping or countervailing duty order
based upon any determination described in clause (i) of
subparagraph (B),
an interested party who is a party to the proceeding in
connection with which the matter arises may commence an
action in the United States Customs Court by filing a
summons, and within thirty days thereafter a complaint,
each with the content and in the form, manner, and style
prescribed by the rules of that court, contesting any factual
findings or legal conclusions upon which the determination
is based.
"(B) REVIEWABLE DETERMINATIONS.—The determinations

which may be contested under subparagraph (A) are as
follows:
"(i) Final affirmative determinations by the Secretary
and by the Commission under section 303, or by the
administering authority and by the Commission under
section 705 or 735 of this Act.
Ante, pp. 159,
"(ii) A final negative determination by the Secretary, ^^^•
the administering authority, or the Commission under
section 303,705, or 735 of this Act.
"(iii) A determination, other than a determination
reviewable under paragraph (1), by the Secretary, the
administering authority, or the Commission under section 751 of this Act.
Ante, p. 175.
"(iv) A determination by the administering authority,
under section 704 or 734 of this Act, to suspend an ^'^^e. PP- 154,
antidumping duty or a countervailing duty investiga- ^^^•
tion.

93 STAT. 302

PUBLIC LAW 96-39—JULY 26, 1979
"(v) An injurious effect determination by the Commission under section 704(h) or 734(h) of this Act.
"(3) PROCEDURES AND FEES.—The procedures and fees set forth
in subsections (b), (c), and (e) of section 2632 of title 28, United
States Code, apply to an action under this section.

Ante, pp. 154,
^^^28 use 2632.

"Ob) STANDARDS OF REVIEW.—

"(1) REMEDY.—The court shall hold unlawful any determination, finding, or conclusion found—
"(A) in an action brought under paragraph (1) of subsection (a), to be arbitrary, capricious, an abuse of discretion, or
otherwise not in accordance with law, or
"(B) in an action brought under paragraph (2) of subsection (a), to be unsupported by substantial evidence on the
record, or otherwise not in accordance with law.
"(2) RECORD FOR REVIEW.—

Ante, p. 187.
'! i

"(A) IN GENERAL.—For the purposes of this subsection, the
record, unless otherwise stipulated by the parties, shall
consist of—
"(i) a copy of all information presented to or obtained
by the Secretary, the administering authority, or the
Commission during the course of the administrative
proceeding, including all governmental memoranda pertaining to the case and the record of ex parte meetings
required to be kept by section 777(a)(3); and
"(ii) a copy of the determination, all transcripts or
records of conferences or hearings, and all notices published in the Federal Register.
"(B) CONFIDENTIAL OR PRIVILEGED MATERIAL.—The confi-

dential or privileged status accorded to any documents,
comments, or information shall be preserved in any action
under this section. Notwithstanding the preceding sentence,
the court may examine, in camera, the confidential or
privileged material, and may disclose such material under
such terms and conditions as it may order,
"(c) LIQUIDATION OF ENTRIES.—
"(1) LIQUIDATION IN ACCORDANCE WITH DETERMINATION.—

;> . i f^ f.
'

Unless such liquidation is enjoined by the court under paragraph
(2) of this subsection, entries of merchandise of the character
covered by a determination of the Secretary, the administering
authority, or the Commission contested under subsection (a)
shall be liquidated in accordance with the determination of the
Secretary, the administering authority, or the Commission, if
they are entered, or withdrawn from warehouse, for consumption on or before the date of publication in the Federal Register
by the Secretary or the administering authority of a notice of a
decision of the United States Customs Court, or of the United
States Court of Customs and Patent Appeals, not in harmony
with that determination. Such notice of a decision shall be
published within ten days from the date of the issuance of the
court decision.
"(2) INJUNCTIVE RELIEF.—In the case of a determination described in paragraph (2) of subsection (a) by the Secretary, the
administering authority, or the Commission, the United States
Customs Court may enjoin the liquidation of some or all entries
of merchandise covered by a determination of the Secretary, the
administering authority, or the Commission, upon a request by
an interested party for such relief and a proper showing that the
requested relief should be granted under the circumstances. In

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 303

ruling on a request for such injunctive relief, the court shall
consider, among other factors, whether—
"(A) the party filing the action is likely to prevail on the
merits,
'
"(B) the party filing the action would be irreparably
harmed if liquidation of some or all of the entries is not
enjoined,
"(C) the public interest would best be served if liquidation
is enjoined, and
"(D) the harm to the party filing the action would be
: '
greater if liquidation of some or all of the entries is not
enjoined than the harm to other persons if liquidation of
some or all of the entries is enjoined.
"(3) REMAND FOR FINAL DISPOSITION.—If the final disposition of
an action brought under this section is not in harmony with the
published determination of the Secretary, the administering
authority, or the Commission, the matter shall be remanded to
the Secretary, the administering authority, or the Commission,
as appropriate, for disposition consistent with the final disposition of the court.
"(d) STANDING.—Any interested party who was a party to the
proceeding under section 303 of this Act or title VII of this Act shall 19 use 1303;
have the right to appear and be heard as a party in interest before the '^"^^' P- ^^^•
United States Customs Court. The party filing the action shall notify
all interested parties of the filing of an action pursuant to this
section.
"(e) LIQUIDATION IN ACCORDANCE WITH FINAL DECISION.—If

the

cause of action is sustained in whole or in part by a decision of the
United States Customs Court or of the United States Court of
Customs and Patent Appeals—
"(1) entries of merchandise of the character covered by the
published determination of the Secretary, the administering
authority, or the Commission, which is entered, or withdrawn
from warehouse, for consumption after the date of publication in
the Federal Register by the Secretary or the administering
authority of a notice of the court decision, and
"(2) entries, the liquidation of which was enjoined under
subsection (c)(2),
shall be liquidated in accordance with the final court decision in the
action. Such notice of the court decision shall be published within ten
days from the date of the issuance of the court decision.
"(f) DEFINITIONS.—For purposes of this section—
"(1) ADMINISTERING AUTHORITY.—The term 'administering authority' means the administering authority described in section
771(1) of t h i s Act.

"(2) COMMISSION.—The term 'Commission' means the United
States International Trade Commission.
"(3) INTERESTED PARTY.—The term 'interested party' means
any person described in section 771(9) of this Act.
"(4) SECRETARY.—The term 'Secretary' means the Secretary of
the Treasury.",
(b) CONFORMING A M E N D M E N T S . —
(1) A M E N D M E N T OF SECTION 516 O F THE TARIFF ACT OF I 9 3 0 . —

Section 516 of the Tariff Act of 1930 (19 U.S.C. 1516) is amended—
(A) by striking out so much of such section as precedes
subsection (e) and inserting in lieu thereof the following:

Ante, p. 176.

93 STAT. 304

PUBLIC LAW 96-39—JULY 26, 1979
"SEC. 516. PETITIONS BY DOMESTIC INTERESTED PARTIES.
"(a) REQUEST FOR CLASSIFICATION AND RATE OF DUTY; PETITION.—

Ante, p. 176.

The Secretary shall, upon written request by an interested party (as
defined in section 771(9) (C), (D), and (E) of this Act) furnish the
classification and the rate of duty imposed upon designated imported
merchandise of a class or kind manufactured, produced, or sold at
wholesale by such interested party. If the interested party believes
that the appraised value, the classification, or rate of duty is not
correct, it may file a petition with the Secretary setting forth—
"(1) a description of the merchandise,
"(2) the appraised value, the classification, or the rate of duty
that it believes proper, and
"(3) the reasons for its belief.
"(b) DETERMINATION ON PETITION.—If, after receipt and consideration of a petition filed by such an interested party, the Secretary
determines that the appraised value, the classification, or rate of duty
is not correct, he shall determine the proper appraised value, classification, or rate of duty and shall notify the petitioner of his determination. All such merchandise entered for consumption or withdrawn
from warehouse for consumption more than thirty days after the date
such notice to the petitioner is published in the weekly Customs
Bulletin shall be appraised, classified, or assessed as to the rate of
duty in accordance with the Secretary's determination.
"(c) CONTEST BY PETITIONER OF APPRAISED VALUE, CLASSIFICATION,

OR RATE OF DUTY.—If the Secretary determines that the appraised
value, classification, or rate of duty with respect to which a petition
was filed pursuant to subsection (a) of this section is correct, he shall
notify the petitioner. If dissatisfied with the determination of the
Secretary, the petitioner may file with the Secretary, not later than
thirty days after the date of the notification, notice that it desires to
contest the appraised value, classification, or rate of duty. Upon
receipt of notice from the petitioner, the Secretary shall cause
publication to be made of his determination as to the proper appraised value, classification, or rate of duty and of the petitioner's
desire to contest, and shall thereafter furnish the petitioner with
such information as to the entries and consignees of such merchandise, entered after the publication of the determination of the
Secretary, at such ports of entry designated by the petitioner in his
notice of desire to contest, as will enable the petitioner to contest the
appraised value, classification, or rate of duty imposed upon such
merchandise in the liquidation of one such entry at such port. The
Secretary shall direct the appropriate customs officer at such ports to
immediately notify the petitioner by mail when the first of such
entries is liquidated.", and
(B) by redesignating subsections (e), (f), (g), and (h), as
subsections (d), (e), (f), and (g), and
(C) in subsection (f), as that subsection is redesignated by
'subparagraph (B) of this paragraph—
(i) by inserting "in the Federal Register by the Secretary or the administering authority of a notice" immediately before "of the court decision", and
(ii) by adding at the end thereof the following: "Such
notice of the court decision shall be published within ten
days from the date of the issuance of the court decision.".
(2) A M E N D M E N T OF SECTION 5 1 5 OF THE TARIFF ACT OF 1930.—

Section 515(a) of such Act (19 U.S.C. 1515(a)) is amended by
adding at the end thereof the following: "Such notice shall

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 305

include a statement of the reasons for the denial, as well as a
statement informing the protesting party of his right to file a
civil action contesting the denial of a protest under section 514 of
theTariffActofl930.".
(3) AMENDMENT OF SECTION 514 OF THE TARIFF ACT OF 1930.—

Section 514 of such Act (19 U.S.C. 1514) is amended—
(A) in subsection (a), by inserting "subsection (b) of this
section," immediately after "Except as provided in",
(B) in subsection (a), by striking out "American manufacturers, producers, and wholesalers" and inserting in lieu
thereof "domestic interested parties as defined in section
771(9) (C), (D), and (E) of this Act",
(C) by redesignating subsections (b) and (c) as subsections
(c) and (d),
(D) by inserting after subsection (a) the following new
subsection:
"(b) With respect to determinations made under section 303 of this
Act or title VII of this Act which are reviewable under section 516A of
this title, determinations of the appropriate customs officer are final
and conclusive upon all persons (including the United States and any
officer thereof) unless a civil action contesting a determination listed
in section 516A of this title is commenced in the United States
Customs Court.",
(E) in paragraph (1) of subsection (c), as that subsection is
redesignated by subparagraph (C) of this paragraph, by
striking out the last sentence thereof and inserting in lieu
thereof the following: "Except as provided in sections 485(d)
and 557(b) of this Act, protests may be filed with respect to
merchandise which is the subject of a decision specified in
subsection (a) of this section by—
"(A) the importers or consignees shown on the entry
papers, or their sureties;
"(B) any person paying any charge or exaction;
"(C) any person seeking entry or delivery;
"(D) any person filing a claim for drawback; or
"(E) any authorized agent of any of the persons described
in clauses (A) through (D).", and
(F) in paragraph (2) of subsection (c), as that subsection is
redesignated by subparagraph (C) of this paragraph, by
adding at the end thereof the following: "A protest by a
surety which has an unsatisfied legal claim under its bond
may be filed within 90 days from the date of mailing of notice
of demand for payment against its bond. If another party has
not filed a timely protest, the surety's protest shall certify
that it is not being filed collusively to extend another
authorized person's time to protest as specified in this
subsection.".

Ante, p. 176.

^ ^SC 1303;
^^^g' ^' 300'

19 USC 1485,
^^^'^•

(4) AMENDMENTS TO TITLE 28 OF THE UNITED STATES CODE.—

(A) Section 1541(a) of title 28, United States Code, is 28 use 1541.
amended by inserting immediately before the period at the
end thereof a comma and the following: "and from any
interlocutory order granting, continuing, modifying, refusing, or dissolving an injunction, or refusing to dissolve or
modify an injunction, under section 516A(c)(2) of the Tariff
Act of 1930".

(B) Section 1582 of such title is amended—
(i) in subsection (b), by striking out "American manufacturers, producers, or wholesalers pursuant to section

59-194 O — 81

22 : QL3

Ante, p . BOO.

28 USC 1582.

93 STAT. 306
Ante, pp. 304,
300.

Ante, p. 299.

Ante, p. 187.
28 use 2632.

28 use 2633.

28 use 2637.

,1

PUBLIC LAW 96-39—JULY 26, 1979
516" and inserting in lieu thereof "interested parties
Under sections 516 and 516A";
(ii) in subsection (c), by inserting "and 516A" immediately after "section 516" each time it appears; and
(iii) by adding at the end thereof the following:
"(e) The Customs Court shall have exclusive jurisdiction of any civil
action brought by a party-at-interest to review a final determination
made under section 305(b)(1) of the Trade Agreements Act of 1979.
For purposes of this subsection, the term 'party-at-interest' means—
"(Da foreign manufacturer, producer, or exporter, or a United
States importer of merchandise which is the subject of a final
determination under section 305(b) of the Trade Agreements Act
of 1979,
"(2) a manufacturer, producer, or wholesaler in the United
States of a like product,
"(3) United States members of a labor organization or other
association of workers whose members are employed in the
manufacture, production, or wholesale in the United States of a
like product, and
"(4) a trade or business association a majority of whose members manufacture, produce, or wholesale a like product in the
United States.
"(f) The Customs Court shall have exclusive jurisdiction of any
application for the issuance of a protective order under section
777(c)(2) of the Tariff Act of 1930.".
(C) Section 2632(f) of such title is amended by striking out
"Upon service" and inserting in lieu thereof "Except as
provided in section 516A of the Tariff Act of 1930, upon
service
(D) Section 2633 of such title is amended—
(i) in the section heading, by striking out "American
manufacturer, producer, or wholesaler";
(ii) by inserting "and section 516A" immediately after
"section 516"; and
(iii) by inserting "(a)" immediately before "Every
proceeding" and by adding at the end thereof the following:
"Ot>) Of those proceedings given precedence under subsection (a) of
this section, any proceeding for the review of a determination under
section 516A(a)(l)(B) or 516A(a)(l)(E) of the Tariff Act of 1930 shall be
given priority over other such proceedings.".
(E) Section 2637 of such title is amended—
(i) in subsection (a) by striking out "In any proceeding" and inserting in lieu thereof "Except as otherwise
provided by law, in any proceeding"; and
(ii) in subsection (b), by striking out "by an American
manufacturer, producer, or wholesaler" and inserting in
lieu thereof "under section 2632(a) of this title".
(F) The table of sections for chapter 169 of such title is
amended by striking out the item relating to section 2633
and inserting in lieu thereof the following new item:
"Sec. 2633. Precedence of cases.".
SEC. 1002. EFFECTIVE DATE AND TRANSITIONAL RULES.

19 use 1516a
"
Ante, p. 150.

(a) EFFECTIVE DATE.—The amendments made by this title shall
take effect on that date (hereinafter in this section referred to as the
"effective date") on which title VII of the Tariff Act of 1930 (as added
by title I of this Act) takes effect; and section 515(a) of such Act of 1930

93 STAT. 307

PUBLIC LAW 96-39—JULY 26, 1979

(as amended by section 1001(b)(2)) shall apply with respect to any Ante, p. BOG.
denial, in whole or in part, of a protest filed under section 514 of such
Act of 1930 on or after the effective date.
Ob) TRANSITIONAL RULES.—
(1) CERTAIN PROTESTS, PETITIONS, ACTIONS, ETC.—The amend-

ments made by this title shall not apply with respect to—
(A) any protest, petition, or notice of desire to contest filed
before the effective date under section 514, 516(a), or 516(d),
Ante, pp. 304,
respectively, of the Tariff Act of 1930;
: ^,
(B) any civil action commenced before the effective date 305.
under section 2632 of title 28 of the United States Code; or 28 u s e 2632.
(C) any civil action commenced after the effective date
under such section 2632 if the protest, petition, or notice of
desire to contest (under section 514, 516(a), or 516(d), respectively, of the Tariff Act of 1930) on which such action is based
• ' ; v)H
was filed before such effective date.
(2) LAW TO BE APPUED FOR PURPOSES OF SUCH ACTIONS.—

Notwithstanding the repeal of the Antidumping Act, 1921, by
section 106(a) of this Act, and the amendment of section 303 of Ante, p. 193.
the Tariff Act of 1930 by section 103 of this Act, the law in effect Ante, p. 190.
on the date of any finding or determination contested in a civil
action described in subparagraph (A), (B), or (C) of paragraph (1)
shall be applied for purposes of that action.
(3) CERTAIN COUNTERVAIUNG AND ANTIDUMPING DUTY ASSESS-

MENTS.—The amendments made by this title shall apply with
respect to the review of the assessment of, or failure to assess,
any countervailing duty or antidumping duty on entries subject
to a countervailing duty order or antidumping finding if the
assessment is made after the effective date. If no assessment of
such duty had been made before the effective date that could
serve the party seeking review as the basis of a review of the
underlying determination, made by the Secretary of the Treasury or the International Trade Commission before the effective
date, on which such order, finding, or lack thereof is based, then
the underlying determination shall be subject to review in
accordance with the law in effect on the day before the effective
date.
(4) CERTAIN COUNTERVAILING AND ANTIDUMPING DUTY DETERMI-

NATIONS.—With respect to any preliminary determination or
final determination of the Secretary of the Treasury under
section 303 of the Tariff Act of 1930 or the Antidumping Act,
1921, which is treated under section 102 of this Act as if made Ante, p. 189.
under section 703(b), 705(a), 733(b), or 735(a) of the Tariff Act of
1930 (as added by title I of this Act) such determinations shall be Ante, pp. 152,
subject to judicial review in the same manner and to the same 159, 163, 169.
extent as if made on the day before the effective date.
TITLE XI—MISCELLANEOUS PROVISIONS
SEC. 1101.

EXTENSION OF
AUTHORITY.

NONTARIFF

BARRIER

NEGOTIATING

Section 102(b) of the Trade Act of 1974 (19 U.S.C. 2112) is amended
by striking out "5-year period" and inserting in lieu thereof "13-year
period".
SEC. 1102. AUCTION OF IMPORT LICENSES.
(a) I N GENERAL.—Notwithstanding any other provision of law, the
President may sell import licenses at public auction under such terms

19 use 2581.

93 STAT. 308

19 u s e 1202.

PUBLIC LAW 96-39—JULY 26, 1979
and conditions as he deems appropriate. 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.
(b) DEFINITION OF IMPORT LICENSE.—For purposes of this section,
the term "import license" means any documentation used to administer a quantitative restriction imposed or modified after the date of
enactment of this Act under—
(1) section 125, 203, 301, or 406 of the Trade Act of 1974 (19
U.S.C. 2135,2253,2411, or 2436),
(2) the International Emergency Economic Powers Act (50
U.S.C. App. 1701-1706),
(3) authority under the headnotes of the Tariff Schedules of the
United States, but not including any quantitative restriction
imposed under section 22 of the Agricultural Adjustment Act of
1934 (7 U.S.C. 624),
(4) the Trading With the Enemy Act (50 U.S.C. App. 1-44),
(5) section 204 of the Agricultural Act of 1956 (7 U.S.C. 1854)
other than for meat or meat products, or
(6) any Act enacted explicitly for the purpose of implementing
an international agreement to which the United States is a
party, including such agreements relating to commodities, but
not including any agreement relating to cheese or dairy products.
SEC. 1103. ADVICE FROM PRIVATE SECTOR.

General policy
advisory
committees,
establishment.

Section 135 of the Trade Act of 1974 (19 U.S.C. 2155) is amended—
(1) by striking out ", in accordance with the provisions of this
section," in subsection (a),
(2) by inserting before the period in subsection (a) a comma and
the following: "with respect to the operation of any trade
agreement once entered into, and with respect to other matters
arising in connection with the administration of the trade policy
of the United States",
(3) by striking out "any trade agreement referred to in section
101 or 102" in subsection (b)(1) and inserting in lieu thereof the
following: "matters referred to in subsection (a)",
(4) by striking out subsection (b)(2) and inserting in lieu thereof
the following:
"(2) The Committee shall meet at the call of the Special Representative for Trade Negotiations. The Chairman of the Committee
shall be elected by the Committee from among its members. Members
of the Committee shall be appointed by the President for a period of 2
years and may be reappointed for one or more additional periods.",
(5) by striking out so much of subsection (c) as precedes
paragraph (2) and inserting in lieu thereof the following:
"(c)(1) The President may, on his own initiative, or at the request of
organizations representing industry, labor, agriculture, or services,
establish general policy advisory committees for industry, labor,
agriculture, or services, respectively, 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, and service interests, respectively, including small business interests, and shall be organized by the Special Representative
for Trade Negotiations and the Secretary of Commerce, Labor, or
Agriculture, as appropriate.".

PUBLIC LAW 96-39—JULY 26, 1979
(6) by striking out the first two sentences of subsection (c)(2)
and inserting in lieu thereof the following: "The President shall
establish such sectoral or functional advisory committees as may
be appropriate. Such committees shall, insofar £is is practicable,
be representative of all industry, labor, agricultural, or service
interests (including small business interests) in the sector or
functional areas concerned.",
(7) by striking out "the President, acting through the Special
Representative for Trade Negotiations and" in the third sentence of subsection (c)(2) and inserting in lieu thereof the following: "the Special Representative for Trade Negotiations and",
(8) by striking out "product sector" in the last sentence of
subsection (c)(2),
(9) by inserting ", in the case of each sectoral committee," in
the last sentence of subsection (c)(2) immediately before "the
product lines",
(10) by striking out subsection (d) and inserting in lieu thereof
the following:
"(d) Committees established under subsection (c) shall meet at the
call of the Special Representative for Trade Negotiations and the
Secretary of Agriculture, Commerce, or Labor, as appropriate, to
provide policy advice, technical advice and information, and advice
on other factors relevant to the matters referred to in subsection (a).",
(11) by striking out "and each sector advisory committee, if the
sector, in the first sentence of subsection (e)(1) and inserting
in lieu thereof the following: "and each sector or functional
advisory committee, if the sector or area",
(12) by inserting "or functional area" immediately after "appropriate sector" in the second sentence of subsection (e)(1),
(13) by inserting "or within the functional area" immediately
before the period at the end of subsection (e)(1),
(14) by striking out subsection (e)(2) and redesignating subsection (e)(1) as subsection (e),
(15) b y (A) striking out "groups" in subsection (f)(2) and inserting
in lieu thereof "committees", and
(B) striking out "on the negotiation of any trade agreement" in such subsection and inserting in lieu thereof "with
respect to matters referred to in subsection (a)",
(16) by striking out "a trade agreement referred to in section
101 or 102" in subsection (g)(1)(A) and inserting in lieu thereof
the following: "matters referred to in subsection (a)",
(17) b y (A) striking out "trade negotiations" in subsection (g)(1)(B)
and inserting in lieu thereof "matters referred to in subsection (a)", and
(B) striking out "proposed trade agreements" in subsection
(g)(2) and inserting in lieu thereof "matters referred to in
subsection (a)",
(18) b y (A) striking out", both during preparation for negotiations
and actual negotiations" in the first sentence of subsection
(B) striking out "arising in preparation for or in the course
of such negotiations" in the second sentence of such subsection, and
(C) striking out "to the negotiations" in the second sentence of such subsection and inserting in lieu thereof the

93 STAT. 309
Functional
advisory
committees,
establishment.

93 STAT. 310

7 u s e 2281.

PUBLIC LAW 96-39—JULY 26, 1979
following: "with respect to matters referred to in subsection
(a)",
(19) by striking out "trade agreement referred to in section 101
or 102" in subsections (j) and (k) and inserting in lieu thereof
"matters referred to in subsection (a)",
(20) by adding at the end of subsection (k) the following new
sentence: "To the maximum extent practicable, the members of
the committees established under subsections (b) and (c), and
other appropriate parties, shall be informed and consulted before
and during any such negotiations and may be permitted to
participate in international meetings to the extent the head of
the United States delegation deems appropriate, but may not
speak or negotiate for the United States.", and
(21) by adding at the end thereof the following new subsection:
"(1) The provisions of title XVIII of the Food and Agriculture Act of
1977 shall not apply to an advisory committee established under
subsection (c).".
SEC. 1104. STUDY OF POSSIBLE AGREEMENTS WITH NORTH AMERICAN
COUNTRIES.

Report to
congressional
committees.

(a) IN GENERAL.—Section 612 of the Trade Act of 1974 (19 U.S.C.
2486) is amended by inserting "(a)" before "It" and by adding at the
end thereof the following:
"(b) The President shall study the desirability of entering into
trade agreements with countries in the northern portion of the
western hemisphere to promote the economic growth of the United
States and such countries and the mutual expansion of market
opportunities and report to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the
Senate his findings and conclusions within 2 years after the date of
enactment of this Act. The study shall include an examination of
competitive opportunities and conditions of competition between
such countries and the United States in the agricultural, energy, and
other appropriate sectors.".
(b) CLERICAL AMENDMENTS.—

(1) The caption of section 612 of such Act is amended to read as
follows:
"SEC. fil2. TRADE RELATIONS WITH NORTH AMERICAN COUNTRIES.".

(2) The table of contents of such Act is amended by striking out
the item relating to section 612 and inserting in lieu thereof the
following new item:
"Sec. 612. Trade relations with North American countries.".
SEC. 1105. AMENDMENTS TO SECTION 337 OF THE TARIFF ACT OF 1930.
(a) RELATIONSHIP TO COUNTERVAILING AND ANTIDUMPING DUTY

Investigation,
termination.
19 u s e 1303;
Ante, pp. 151,
162.

INVESTIGATIONS.—Paragraph (3) of section 337(b) of the Tariff Act of
1930 (19 U.S.C. 1337) is amended—
(1) by striking out "the matter" and inserting in lieu thereof "a
matter, in whole or in part,", and
(2) by adding at the end thereof the following: "If the Commission has reason to believe the matter before it is based solely on
alleged acts and effects which are within the purview of section
303, 701, or 731 of this Act, it shall terminate, or not institute,
any investigation into the matter. If the Commission has reason
to believe the matter before it is based in part on alleged acts and
effects which are within the purview of section 303, 701, or 731 of
this Act, and in part on alleged acts and effects which may,

PUBLIC LAW 96-39—JULY 26, 1979
independently from or in conjunction with those within the
purview of such section, estabUsh a basis for relief under this
section, then it may institute or continue an investigation into
the matter. If the Commission notifies the Secretary or the
administering authority (as defined in section 771(1) of this Act)
with respect to a matter under this paragraph, the Commission
may suspend its investigation during the time the matter is
before the Secretary or administering authority for final decision. For purposes of computing the 1-year or 18-month periods
prescribed by this subsection, there shall be excluded such period
of suspension. Any final decision of the Secretary under section
303 of this Act or by the administering authority under section
701 or 731 of this Act with respect to the matter within such
section 303, 701, or 731 of which the Commission has notified the
Secretary or administering authority shall be conclusive upon
the Commission with respect to the issue of less-than-fair-value
sales or subsidization and the matters necessary for such decision.".

93 STAT. 311

Ante, p. 176.

19 USC 1303.
Ante, pp. 151,
162.

(b) CIVIL PENALTY FOR VIOLATION OF ORDER.—Subsection (f) of

section 337 of such Act (19 U.S.C. 1337(f)) is amended by inserting
"(1)" before "In lieu of, and by adding at the end thereof the
following new paragraph:
"(2) Any person who violates an order issued by the Commission
under paragraph (1) after it has become final shall forfeit and pay to
the United States a civil penalty for each day on which an importation of articles, or their sale, occurs in violation of the order of not
more than the greater of $10,000 or the domestic value of the articles
entered or sold on such day in violation of the order. Such penalty
shall accrue to the United States and may be recovered for the United
States in a civil action brought by the Commission in the Federal
District Court for the District of Columbia or for the district in which
the violation occurs. In such actions, the United States district courts
may issue mandatory injunctions incorporating the relief sought by
the Commission as they deem appropriate in the enforcement of such
final orders of the Commission.".
(c) CONFORMING AMENDMENT.—The fourth sentence of section
337(c) of such Act (19 U.S.C. 1337(c)) is amended by striking out "(d) or
(e)" and inserting in lieu thereof "(d), (e), or (f)".
SEC. 1106. TECHNICAL AMENDMENTS TO THE TRADE ACT OF 1974.

(a) AMENDMENT OF TRADE ACT OF 1974.—Except as otherwise
specifically provided in this section, any reference in this section by
way of amendment, repeal, or other change to a provision of law is a
reference to the specified provision of the Trade Act of 1974.
19 USC 2101.
(b) TABLE OF CONTENTS.—In the table of contents the item relating
to section 261 is amended to read as follows:
"Sec. 261. Definition of firm.".
(c) TITLE I.—

(1) Section 102(e)(2) is amended by striking out "copy of such 19 USC 2112.
agreement" and inserting in lieu thereof "copy of the final legal
text of such agreement". The amendment made by the preceding
sentence shall apply with respect to trade agreements submitted
to the Congress under section 102 of the Trade Act of 1974 after
the date of the enactment of this Act.
(2) The next to last sentence of section 121(c) is amended to 19 USC 2131.
read as follows: "Such trade agreement may be entered into
under section 102.".

93 STAT. 312
19 use 2119.

19 use 2192.

PUBLIC LAW 96-39—JULY 26, 1979
(3) Paragraph (2) of section 109(c) is amended by striking out
"such" and inserting in Ueu thereof "any".
(4) Section 5315(24) of title 5, United States Code, is amended
by inserting immediately after "Commission" the following:
"(5)".
(5) Paragraph (1) of section 152(c) is amended by striking out
"153(b)" and inserting in lieu thereof "154(b)".
(d) TITLE IL—

19 use 2253.

19 use 1315.

(1) Section 203(a)(4) is amended by inserting ", conclude, and
carry out" immediately after "negotiate".
(2) Section 203(b) is amended by—
(A) striking out "On the day on which the President
proclaims import relief under this section or announces his
intention to negotiate one or more orderly marketing agreements," in paragraph (1) and inserting in lieu thereof "On
the day the President determines under section 202 to
provide import relief, including announcement of his intention to negotiate an orderly marketing agreement,",
(B) striking out "201(b)(1)(A)" in paragraph (1) and inserting in lieu thereof "201(d)(1)(A)", and
(C) adding at the end thereof the following new paragraph:
"(3) On the day on which the President proclaims any import relief
under this section not reported pursuant to paragraph (1), he shall
transmit to Congress a document setting forth the action he is taking
and the reasons therefor.".
(3) Section 203(c)(1) is amended by—
(A) striking out "201(b)(1)(A)" and inserting in lieu thereof
"201(d)(1)(A)", and
(B) by inserting "under the procedures set forth in section
152" immediately after "voting".
(4) Section 203(e)(3) is amended by striking out "(1), (2), (3) or
(5)".
(5) Section 203(g)(1) is amended by—
(A) striking out "quantitative"; and
(B) striking out "pursuant to subsection (a)(3) or (c)" and
inserting in lieu thereof "pursuant to this section".
(6) Section 203(g)(2) is amended by striking out "or (e)(2)" each
place it appears and inserting in lieu thereof "(e)(2), or (e)(3)".
(7) Subsection (h) of section 203 is amended by—
(A) inserting "or (i)(3)" after "(i)(2)" in paragraphs (3) and
(4), and
(B) by striking out "one 3-year period" in paragraph (3)
and inserting in lieu thereof "one period of not more than 3
years".
(8) The caption of section 261 is amended to read as follows:
"SEC. 261. DEFINITION OF FIRM.".
(e) TITLE III.—Section 331(c) is amended by striking out "515(d)"
and inserting in lieu thereof "315(d)".
(f) TITLE IV.—

19 use 2432.
19 use 2434.
19 use 2435.

(1) Section 402(c)(1) is amended by striking out "subsection (a)"
and inserting in lieu thereof "subsections (a)".
(2) Section 404(c) is amended by striking out the comma.
(3) Section 405(b)(8) is amended by striking out "those" and
inserting in lieu thereof "arrangements".
(g) TITLE V.—

19 use 2462.

(1) Section 502(b)(2) is amended by striking out "withhold
supplies of vital commodity resources from international trade or

93 STAT. 313

PUBLIC LAW 96-39—JULY 26, 1979

to raise the price of such commodities to an unreasonable level
which causes serious disruption of the world economy;".
(2) Section 502(b)(6) is amended by inserting a comma after
"partnership".
(3) Section 504(c)(1) is amended—
19 use 2464.
(A) by striking out "60 days" and inserting in lieu thereof
"90 days", and
(B) by striking out "60th day," and inserting in lieu thereof
"90th day,".
(h) TITLE VL—

(1) Section 601(2) is amended by striking out "and" and 19USC2481.
inserting in lieu thereof "or".
(2) Section 602(a) is amended by striking out ", as amended". 19 USC 1352.
(3) Section 602(f) is amended by striking out the last comma. 19 USC 2101
SEC. 1107. TECHNICAL AMENDMENTS TO THE TARIFF SCHEDULES OF THE
UNITED STATES.

note.

(a) GENERAL HEADNOTE CHANGES.—The general headnotes for the
Tariff Schedules of the United States (19 U.S.C. 1202) are amended—
(1) by inserting "and" after "subpart E" in headnote 3(a)(i), and
(2) by striking out "Germany (the Soviet zone and the Soviet
sector of Berlin)" in headnote 3(e) and inserting in lieu thereof
"German Democratic Republic and East Berlin".
(b) TOBACCO.—Schedule 1, part 13 of such Schedules is amended by
redesignating headnotes 5 and 6 as 3 and 4, respectively.
(c) FLUORANTHENE.—Schedule 4, part 1, subpart A, item 401.36 of
such Schedules is amended to read "Fluoranthene."
(d) STRUCTURES.—Schedule 6, part 3, subpart F of such Schedules is
amended by striking out items 652.97 and 652.99 and the superior
heading thereto and by inserting in lieu thereof the following:
652.97
653.00
653.01

Offshore oil and natural gas drilling and production platforms
Other
Other.

9.5% ad val.
9.5% ad val.
9.5% ad val.

45% ad val.
45% ad val.
45% ad val.

(e) MEASURING, TESTING, AND CONTROLLING INSTRUMENTS.—Sched-

ule 7, part 2, subpart D of such Schedules is amended—
(1) by striking out "711.00" in headnote 1 and headnote 2(a)
and inserting "711.04" in lieu thereof; and
(2) by striking out "712.00 to 712.99" in headnote 2 and
inserting "712.05 to 712.51" in lieu thereof.
(0 PHOTOGRAPHIC PRODUCTS.—The article description in item
722.10 of such Schedules is amended to read as follows: "Having a
photographic lens valued over 50 percent of the value of the article.".
(g) BUTTONS.—Schedule 7, part 7, subpart A of such Schedules is
amended—
(1) by striking out "745.22," in headnote 2(a); and
(2) by redesignating headnote 4 as headnote 3.
(h) PRESSURE-SENSITIVE ARTICLES.—Schedule 7, part 13, subpart A,
headnote l(ii) of such Schedules is amended by striking "13B" and
inserting "13C" in lieu thereof.
SEC. 1108. REPORTING OF STATISTICS ON A COST-INSURANCE-FREIGHT
BASIS.

(a) IN GENERAL.—Section 301 of title 13, United States Code, is
amended by adding at the end thereof the following new subsections:
"(e) There shall be reported, on monthly and cumulative bases, for
each item in the Tariff Schedules of the United States Annotated, the 19 USC 1202.
United States port of entry value (as determined under subsection
(b)(6)). There shall be reported, on monthly and cumulative bases, the

93 STAT. 314

19 u s e 1202.

13 u s e 301
note.

PUBLIC LAW 96-39—JULY 26, 1979
balance of international trade for the United States reflecting (1) the
aggregate value of all United States imports as reported in accordance with the first sentence of this subsection, and (2) the aggregate
value of all United States exports. The values and balance of trade
required to be reported by this subsection shall be released no later
than 48 hours before the release of any other government statistics
concerning values of United States imports or United States balance
of trade, or statistics from which such values or balance may be
derived.
"(f) On or before January 1,1981, and as often thereafter as may be
necessary to reflect significant changes in rates, there shall be
reported for each item of the Tariff Schedules of the United States
Annotated, the ad valorem or ad valorem equivalent rate of duty
which would have been required to be imposed on dutiable imports
under that item, if the United States customs values of such imports
were based on the United States port of entry value (as reported in
accordance with the first sentence of subsection (e)) in order to collect
the same amount of duties on imports under that item as are
currently collected.".
(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall
apply to reports made after December 31,1979.
SEC. 1109. REORGANIZING AND RESTRUCTURING OF INTERNATIONAL
TRADE FUNCTIONS OF THE UNITED STATES GOVERNMENT.

19 u s e 2111
note.

26 u s e 3083.
Department of
International
Trade and
Investment.
Establishment.

(a) IN GENERAL.—The President shall submit to the Congress, not
later than July 10, 1979, a proposal to restructure the international
trade functions of the Executive Branch of the United States Government. In developing his proposal, the President shall consider, among
other possibilities, strengthening the coordination and functional
responsibilities of the Office of the Special Representative for Trade
Negotiations to include, among other things, representation of the
United States in all matters before the General Agreement on Tariffs
and Trade, the establishment of a board of trade with a coordinating
mechanism in the Executive Office of the President, and the establishment of a Department of International Trade and Investment.
The recommendations of the President, as embodied in such proposal,
should include a monitoring and enforcement structure which would
insure protection of United States rights under agreements negotiated pursuant to the Tokyo Round of the Multilateral Trade Negotiations and all other elements of multilateral and bilateral international trade agreements. The proposal should result in an upgrading of
commercial programs and commercial attaches overseas to assure
that United States trading partners are meeting their trade agreement obligations, particularly those entered into under such agreements, including the tendering procedures of the Agreement on
Government Procurement.
(b) CONGRESSIONAL ACTION.—In order to ensure that the 96th
Congress takes final action on a comprehensive reorganization of
trade functions as soon as possible, the appropriate committee of each
House of the Congress shall give the proposal by the President
immediate consideration and shall make its best efforts to take final
committee action to reorganize and restructure the international
trade functions of the United States Government by November 10,
1979.
SEC. 1110. STUDY OF EXPORT TRADE POLICY.

Report to
eongress.
19 u s e 2111
note.

(a) REVIEW OF EXPORT PROMOTION AND DISINCENTIVES.—The President shall review all export promotion functions of the executive

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 315

branch and potential programmatic and regulatory disincentives to
exports, and shall submit to the Congress a report of that review not
later than July 15,1980. The report should make particular reference
to those activities which enhance the role of small and medium-sized
businesses in export trade.
(b) CONDITIONS OF COMPETITION STUDY.—Not later than July 15, Report to
1980, the President shall submit to the Congress a study of the factors Congress.
bearing on the competitive posture of United States producers and
the policies and programs required to strengthen the relative competitive position of the United States in world markets.
SEC. 1111. GENERALIZED SYSTEM OF PREFERENCES.

(a) IN GENERAL.—Title V of the Trade Act of 1974 (19 U.S.C. 2461 et
seq.) is amended as follows:
(1) Section 502(a)(3) is amended by inserting "or which is
contributing to comprehensive regional economic integration
among its members through appropriate means, including, but
not limited to, the reduction of duties," immediately before "the
President".
(2) Section 502(e) is amended by—
(A) inserting "(1)" immediately after "(e)"; and
(B) adding at the end thereof the following new paragraph:
"(2) The President may exempt from the application of paragraph
(2) of subsection (b) any country that enters into a bilateral productspecific trade agreement with the United States under section 101 or
102 of the Trade Act of 1974 before January 3, 1980. The President
shall terminate the exemption granted to any country under the
preceding sentence if that country interrupts or terminates the
delivery of supplies of petroleum and petroleum products to the
United States.'l
(3) Section 503(b) is amended—
(A) by amending paragraph (2) to read as follows:
"(2) If the sum of (A) the cost or value of the materials produced in
the beneficiary developing country or any 2 or more countries which
are members of the same association of countries which is treated as
one country under section 502(a)(3), plus (B) the direct costs of
processing operations performed in such beneficiary developing country or such member countries is not less than 35 percent of the
appraised value of such article at the time of its entry into the
customs territory of the United States."; and
(B) by striking out the penultimate sentence.
(4) Section 504 is amended—
(A) by adding at the end of subsection (c) the following new
paragraph:
"(3) For purposes of this subsection, the term 'country' does not
include an association of countries which is treated as one country
under section 502(a)(3), but does include a country which is a member
of any such association."; and
(B) by inserting at the end of subsection (d) the following
new sentence: "The President may disregard subsection
(c)(1)(B) with respect to any eligible article if the appraised
value of the total imports of such article into the United
States during the preceding calendar year is not in excess of
an amount which bears the same ratio to $1,000,000 as the
gross national product of the United States for that calendar
year, as determined by the Department of Commerce, bears
to the gross national product of the United States for
calendar year 1979.".

19 use 2462

19 u s e 2111,
2112.

19 u s e 2463.

19 use 2464.
"eountry."

93 STAT. 316

PUBLIC LAW 96-39—JULY 26, 1979

19 u s e 2464
note.

(b) EFFECTIVE DATE.—The amendments made by paragraph (4) of
subsection (a) shall take effect on April 1,1980.

19 u s e 2582.

SEC. 1112. CONCESSION-RELATED REVENUE LOSSES TO UNITED STATES
POSSESSIONS.
(a) DETERMINATIONS BY SECRETARY OF COMMERCE.—
(1) IMPACT OF CONCESSIONS.—Upon the request of the govern-

ment of a possession of the United States, the Secretary of
Commerce shall determine before January 1,1980—
(A) whether a concession was granted by the United States
in the Tokyo Round of the Multilateral Trade Negotiations
on an article produced in that possession on which excise
taxes are levied by the United States, and
(B) whether the sum of the amounts transferred and paid
over to that possession attributable to such taxes for calendar year 1978 were equal to, or greater than, an amount
equal to 10 percent of the tax revenues (not including
revenues associated with petroleum or petroleum products)
of that possession for 1978.
(2) ANNUAL DETERMINATIONS.—If the determinations of the

Secretary under subparagraphs (A) and (B) of paragraph (1) are
affirmative, then he shall determine, within 3 months after the
close of each of the fiscal years 1980 through 1984, whether that
concession contributed importantly to a reduction in the sum of
the amounts transferred and paid over to that possession on
account of such excise taxes for the most recently closed fiscal
year. In making his determination, the Secretary shall take into
account the extent to which other factors may have contributed
to the reduction. The Secretary shall determine the amount of
the reduction by subtracting the amount so transferred and paid
over for the fiscal year from the amount which would have been
transferred and paid over for the fiscal year if the products of the
possession with respect to which the excise tax is imposed had
maintained a share of the United States market for that product
which was the share of the United States market for the product
for fiscal year 1979.
Ob) INCLUSION OF COMPENSATORY AMOUNT IN BUDGET OF THE UNITED

31 u s e 1.
Report to
eongress.

Appropriation
authorization.

STATES.—If the Secretary determines an amount under subsection
(a)(2), he shall advise the President of that amount and the President
may include, in the first Budget or Supplemental Budget submitted
under the Budget and Accounting Act, 1921, after receiving such
advice, an amount, equal to the amount so determined by the
Secretary, for payment to the government of that possession to offset
the amount of the reduction. If the President includes an amount
different from the amount determined by the Secretary or no
amount, the President shall promptly submit a report to the Congress
setting forth his reasons for submitting such a different amount.
Upon appropriation, such sums shall be paid promptly to the government of such possession. There are authorized to be appropriated
such sums as may be necessary for the purposes of this section for
fiscal years 1981 through 1985.
(c) REPORT TO THE CONGRESS.—On January 31, 1984, the President

shall report to the Congress on the operation of this section, the
reductions in revenues determined under this section, and any
reductions which are likely to occur in fiscal years beginning after
September 30, 1984. If he determines that such action is warranted,
he shall recommend to the Congress in such report an extension of
the application of this section to such fiscal years.

PUBLIC LAW 96-39—JULY 26, 1979

93 STAT. 317

SEC. 1113. NO BUDGET AUTHORITY FOR ANY FISCAL YEAR BEFORE
FISCAL YEAR 1981.
Nothing in this Act shall be construed as authorizing the enactment of new budget authority for any fiscal year beginning before
October 1,1980.
SEC. 1114. EFFECTIVE DATE.
Except as otherwise provided in this title, this title shall take effect 19 use 2581
on the date of enactment of this Act.
^°^Approved July 26, 1979.

LEGISLATIVE HISTORY:
HOUSE REPORT No. 96-317 (Comm. on Ways and Means).
SENATE REPORT No. 96-249 (Comm. on Finance).
CONGRESSIONAL RECORD, Vol. 125 (1979):
July 10, 11, considered and passed House.
July 23, considered and passed Senate.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 15, No. 30:
July 26, Presidential statement.