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98 STAT. 2948

PUBLIC LAW 98-573—OCT. 30, 1984

Public Law 98-573
98th Congress
An Act
Oct 30 1984
'
[H.R. 3398]

To amend the trade laws, authorize the negotiation of trade agreements, extend trade
preferences, change the tariff treatment with respect to certain articles and for
other purposes.

Be it enacted by the Senate and House of Representatives of the
Trade and Tariff United States of America in Congress assembled, That this Act with
Act of 1984.
the following table of contents may be cited as the "Trade and Tariff
19
use
1654
Act of 1984":
note.
TITLE I—TARIFF SCHEDULES AMENDMENTS
Subtitle A—Reference to Tariff Schedules
Sec. 101. Reference.
Subtitle B—Permanent Changes in Tariff Treatment
Coated textile fabrics.
Warp knitting machines.
Certain gloves.
Pet toys.
Water chestnuts and bamboo shoots.
Gut for use in manufacture of sterile surgical sutures.
Orange juice products.
Reimportation of certain articles originally imported duty free.
Geophysical equipment.
Scrolls or tablets used in religious observances.
Steel pipes and tubes used in lampposts.
Wearing apparel.
Recently developed dairy products.
Telecommunications product classification.
Fresh asparagus.
Chipper knife steel.
Implementation of customs convention on containers, 1972.

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111.
112.
113.
114.
115.
116.
117.
118.
119.
120.
121.
122.
123.
124.
125.
126.
127.

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Subtitle C—Temporary Changes in Tariff Treatment
131. Fresh, chilled, or frozen brussels sprouts.
132. /3-naphthol.
133. 4-chloro-3-methylphenol.
134. Tetraamino biphenyl.
135. 6-amino-l-naphthol-3-sulfonic acid.
136. DSA.
137. Guanidines.
138. Certain antibiotics.
139. Acetylsulfaguanidine.
140. Fenridazon-potassium.
141. Uncompounded allyl resins.
142. Sulfamethazine.
143. Sulfaguanidine.
144. Terfenadine.
145. Sulfathizole.
146. Sulfaquinoxaline and sulfanilamide.
147. Dicyclomine hydrochloride and mepenzolate bromide.
148. Amiodarone.
149. Desipramine hydrochloride.
150. Clomiphene citrate.
151. Yttrium bearing materials and compounds.
152. Tartaric acid and chemicals.
153. Certain mixtures of magnesium chloride and magnesium nitrate.
154. Nicotine resin complex.

PUBLIC LAW 98-573—OCT. 30, 1984
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98 STAT. 2949

155. Rifampin.
156. Lactulose.
157. Iron-dextran complex.
158. Natural graphite.
159. Zinc.
160. Certain diamond tool blanks.
161. Clock radios.
162. Lace-braiding machines.
163. Certain magnetron tubes.
164. Narrow fabric looms.
165. Umbrella frames.
166. Crude feathers and down.
167. Canned corned beef.
168. Hovercraft skirts.
169. Disposable surgical drapes and sterile gowns.
170. MXDA.
171. 4,4'-Bis(a,a-dimethylbenzyl) diphenylamine.
172. Flecainide acetate.
173. Caffeine.
174. Watch crystals.
175. Unwrought lead.
176. Flat knitting machines.
177. Certain menthol feedstocks.
178. 2-methyl-4-chlorophenol.
179. Unwrought alloys of cobalt.
180. Circular knitting machines.
181. o-Benzyl-p-chlorophenol.
182. Certain benzenoid chemicals.
183. m-Toluic acid.

Subtitle D—Technical Amendments
Sec. 191. Technical and conforming amendments.
Subtitle E—Effective Dates
Sec. 195. Effective dates.
TITLE II—CUSTOMS AND MISCELLANEOUS AMENDMENTS
Sec.
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201.
202.
203.
204.
205.
206.
207.
208.
209.
210.
211.
212.
213.
214.

Subtitle A—Amendments to the Tariff Act of 1930
Reference.
Drawback.
Public disclosure of certain manifest information.
Virgin Islands excursion vessels.
Unlawful importation or exportation of certain vehicles.
Increase in amount for informal entry of goods.
Certain country of origin marking requirements.
Equipments and repairs of certain vessels exempt from duties.
Articles returned from space.
Date of liquidation or reliquidation.
Operation of certain duty-free sales enterprises.
Customs brokers.
Seizures and forfeitures.
Effective dates.

Subtitle B—Small Business Trade Assistance
Sec. 221. E}stablishment of trade remedy assistance office in the United States
International Trade Commission.
Sec.
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231.
232.
233.
234.
235.
236.
237.
238.
239.
240.

Subtitle C—Miscellaneous Provisions
Foreign trade zone provisions.
Denial of deduction for certain foreign advertising expenses.
Certain relics and curios.
Modification of duties on certain articles used in civil aviation.
Products of Caribbean Basin countries entered in Puerto Rico.
User fee for customs services at certain small airports.
Notification of certain actions by the United States Customs Service.
Columbia-Snake Customs District.
Reliquidation of certain mass spectrometer systems.
Max Planck Institute for Radioastronomy.

31-194 0

86 - 19 : QL,3 Part3

98 STAT. 2950

PUBLIC LAW 98-573—OCT. 30, 1984

Sec. 241. Duty-free entry for research equipment for North Dakota State University, Fargo, North Dakota.
Sec. 242. Duty-free entry for pipe organ for the Crystal Cathedral, Garden Grove,
California.
Sec. 243. Duty-free entry for scientific equipment for the Ellis Fischel State Cancer
Hospital, Columbia, Missouri.
Sec. 244. Duty-free entry of organs imported for the use of Trinity Cathedral of
Cleveland, Ohio.
Sec. 245. Sense of Congress regarding possible EEC action on corn gluten.
Sec. 246. Study on honey imports.
Sec. 247. Copper imports.
Sec. 248. Disapproval of Presidential determinations under section 203 of the Trade
Act of 1974.
Sec. 249. Section 201 criteria.
Sec. 250. Hogs and pork products from Canada.
Sec. 251. Copjnight protection of computer software.
TITLE III—INTERNATIONAL TRADE AND INVESTMENT
Short title; amendment of Trade Act of 1974.
Statement of purposes.
Analysis of foreign trade barriers.
Amendments to title III of the Trade Act of 1974.
Negotiating objectives with respect to international trade in services and
investment and high technology industries.
Sec. 306. Provisions relating to international trade in services.
Sec. 307. Negotiating authority with respect to foreign direct investment.
Sec. 308. Negotiation of agreements concerning high technology industries.
Sec.
Sec.
Sec.
Sec.
Sec.

301.
302.
303.
304.
305.

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401.
402.
403.
404.
405.

TITLE IV—TRADE WITH ISRAEL
Negotiation of trade agreements to reduce trade barriers.
Criteria for dutjr^free treatment of articles.
Application of certain other trade law provisions.
Fast track procedures for perishable articles.
Construction of title.

TITLE V—GENERALIZED SYSTEM OF PREFERENCES RENEWAL
Sec. 501. Short title; statement of purpose.
Sec. 502. Consideration of a beneficiary developing country's competitiveness in
extending preferences.
Sec. 503. Amendments relating to the beneficiary developing country designation
criteria.
Sec. 504. Regulations; articles which may not be designated as eligible articles.
Sec. 505. Limitations on preferential treatment.
Sec. 506. Extension of the generalized system of preferences and reports.
Sec. 507. Agricultural exports of beneficiary developing countries.
Sec. 508. Effective date.
TITLE VI—TRADE LAW REFORM
Reference.
Sales for importation.
Waiver of verification.
Termination or suspension of investigation.
Final determination of critical circumstances.
Simultaneous investigations.
Countervailing duties apply on country-wide basis.
Conditional payment of countervailing duties.
Initiation of antidumping duty investigations.
Duties of customs officers.
Reviews and determinations.
Definitions and special rules.
Upstream subsidies.
Reseller's price taken into account in determining purchase price.
Foreign market value.
Hearings.
Subsidies discovered during proceeding.
Verification of information.
Records of ex parte meetings; release of confidential information.
Sampling and averaging in determining United States price and foreign
market value.
Sec. 621. Interest.

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618.
619.
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PUBLIC LAW 98-573—OCT. 30, 1984
Sec.
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622.
623.
624.
625.
626.

98 STAT. 2951

Drawbacks.
Elimination of interlocutory appeals.
Adjustments study.
Industrial targeting studies.
Effective dates.

TITLE VII—AUTHORIZATION OF APPROPRIATIONS FOR CUSTOMS AND
TRADE AGENCIES
Sec. 701. United States International Trade Commission.
Sec. 702. United States Customs Service.
Sec. 703. Office of the United States Trade Representative.
TITLE VIII—ENFORCEMENT AUTHORITY FOR THE NATIONAL POLICY FOR
THE STEEL INDUSTRY
Sec. 801. Short title.
Sec. 802. Findings and purposes.
Sec. 803. Sense of Congress regarding the national policy for the steel industry.
Sec. 804. Definitions.
Sec. 805. Enforcement authority.
Sec. 806. Effective period of title.
Sec. 807. Department of Labor worker assistance plan.
Sec. 808. Effective date.
TITLE IX—ELIMINATION OF BARRIERS TO INTERNATIONAL TRADE IN
UNITED STATES WINE
Sec. 901. Short title.
Sec. 902. Congressional findings and purposes.
Sec. 903. Definitions.
Sec. 904. Designation of major wine trading countries.
Sec. 905. Actions to reduce or eliminate tariff and nontariff barriers affecting
United States wine.
Sec. 906. Required consultations.
Sec. 907. United States wine export promotion.

TITLE I—TARIFF SCHEDULES AMENDMENTS
Subtitle A—Reference to Tariff Schedules
SEC. 101. REFERENCE.

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

Subtitle B—Permanent Changes in Tariff Treatment
SEC. 111. COATED TEXTILE FABRICS.

(a) Headnote 5 of schedule 3 is amended to read as follows:
"5. (a) Except as otherwise provided in subsection (b) of this
headnote, for the purposes of parts 5, 6, and 7 of this schedule and
parts 1 (except subpart A), 4, and 12 of schedule 7, in determining
the classification of any article which is wholly or in part of a fabric
coated or filled, or laminated, with nontransparent rubber or plastics (which fabric is provided for in part 4C of this schedule), the
fabric shall be regarded not as a textile material but as being wholly
of rubber or plastics to the extent that (as used in the article) the
nontransparent rubber or plastics forms either the outer surface of
such article or the only exposed surface of such fabric.
"(b) Any fabric described in part 4C of this schedule shall be
classified under part 4C whether or not also described elsewhere in
the schedules.".

98 STAT. 2952

PUBLIC LAW 98-573—OCT. 30, 1984

Gb) The headnotes to subpart C of part 4 of schedule 3 are
amended—
(1) by striking out clause (vii) in headnote 1; and
(2) by inserting "or value" after "quantities" in headnote 2(c).
(c) Part 12 of schedule 7 is amended by inserting immediately
after headnote 1 the following new headnote:
"2. This part does not cover fabrics, coated or filled, or laminated,
with rubber or plastics provided for in part 40 of schedule 3.".
SEC. 112. WARP KNITTING MACHINES.

(a) Subpart E of part 4 of schedule 6 is amended by striking out
item 670.20 and inserting in lieu thereof the following new items
with article descriptions at the same indentation level as the article
description in item 670.19:
670.20
670.21

Warp knitting machines
Other

Free
5.6% ad val.

4.7% ad val.

40% ad val.
40% ad val.

(b) Item 912.14 of the Appendix is repealed.
(cXl) The rate of duty in column numbered 1 for item 670.21 (as
added by subsection (a)) shall be subject to all staged rate reductions
for item 670.20 that were proclaimed by the President before the
date of the enactment of this Act.
(2) Whenever the rate of duty specified in column numbered 1 for
such item 670.21 is reduced to the same level as the corresponding
rate of duty specified in the column entitled "LDDC" for such item,
or to a lower level, the rate of duty in such "LDDC" column shall be
deleted.
SEC. 113. CERTAIN GLOVES.

Subpart C of part 1 of schedule 7 is amended—
(1) by amending headnote 1—
(A) by striking out "and" at the end of paragraph (a),
(B) by striking out the period at the end of paragraph (b)
and inserting "; and", and
(C) by adding at the end thereof the following new
paragraph:
"(c) the term 'with fourchettes' includes only gloves which, at
a minimum, have fourchettes extending from fingertip to fingertip between each of the four fingers."; and
(2) by amending item 705.85 by striking out "textile fabric"
and "or side walls".
SEC. 114. PET TOYS.

Subpart A of part 13 of schedule 7 is amended by inserting
immediately after item 790.55 the following new item:
790.57

Toys for pets, of textile materials
8.5% ad val.

80% ad val.

SEC. 115. WATER CHESTNUTS AND BAMBOO SHOOTS.

(a) Items 903.45, 903.50, and 903.55 are repealed.
(b) Subpart A of part 8 of schedule 1 is amended as follows:
(1) Item 137.84 is amended by striking out "25% ad val." in
column 1 and inserting in lieu thereof "Free".
(2) Item 138.40 is amended by striking out "17.5% ad val." in
column 1 and inserting in lieu thereof "Free".

98 STAT. 2953

PUBLIC LAW 98-573—OCT. 30, 1984

(c) Subpart C of part 8 of schedule 1 is amended as follows:
(1) Item 141.70 is amended by striking out "7% ad val." in
column 1 and inserting in lieu thereof "Free".
(2) Item 141.78 is amended by striking out "8.1% ad val." in
column 1, and inserting in lieu thereof "Free".
SEC. 116. GUT FOR USE IN MANUFACTURE OF STERILE SURGICAL
SUTURES.

(a) Subpart C of part 13 of schedule 7 is amended by striking out
item 792.22 and inserting in lieu thereof the following new items
with the article description at the same indentation level as the
article description in item 792.20:
792.24
792.26

If imported for use in the
manufacture of sterile
5.4% ad val.
surgical sutures
Other
11.2% ad val.

3.5% ad val.
7.7% ad val.

40% ad val.
40% ad val.

G)X1) The rate of duty in column numbered 1 for item 792.24 (as
added by subsection (a)) shall be subject to any staged rate reductions for item 495.10 which are proclaimed by the President before
the date of the enactment of this Act.
(2) Whenever, after the application of paragraph (1), the rate of
duty provided for item 792.24 in the column numbered 1 is not
greater than the rate of duty provided for such item in the column
designated "LDDC", no rate of duty shall be provided for such item
in the column designated "LDDC".
(c) The rate of duty in column numbered 1 for item 792.26 (as
added by subsection (a)) shall be subject to the same staged rate
reductions that were proclaimed by the President before the date of
the enactment of this Act for item 792.22.
SEC. 117. ORANGE JUICE PRODUCTS.

Subpart A of part 12 of schedule 1 is amended—
(1) by inserting after item 165.25 the following new items and
the superior heading thereto, with such superior heading at the
same indentation level as the article description "Lime" in item
165.25:
165.27

165.29

Orange:
Not concentrated and
not made from a
juice having a degree
of concentration of
1.5 or more (as determined before correction to the nearest
0.5 degree)
20( per gal.
Other
35i per gal.

70< per gal.
70< per gal.

(2) by redesignating items 165.30 and 165.35 as items 165.32
and 165.36, respectively.
SEC. 118. REIMPORTATION
OF
CERTAIN
IMPORTED DUTY FREE.

ARTICLES

ORIGINALLY

Item 801.00 is amended—
(1) by inserting "or which were previously entered free of duty
pursuant to the Caribbean Basin Economic Recovery Act or title
V of the Trade Act of 1974" after "previous importation"; and

97 Stat. 384.
19 u s e 2701
note.
19 u s e 2461.

98 STAT. 2954

PUBLIC LAW 98-573—OCT. 30, 1984
(2) by striking out "lease to a foreign manufacturer" in clause
(1) and inserting in lieu thereof "lease or similar use agreements".

SEC. 119. GEOPHYSICAL EQUIPMENT.

Part 1 of schedule 8 is amended by inserting in numerical sequence the following new item with the article description at the
same indentation level as "Exhibition" in item 802.10:
802.50

Rendition of geophysical or
contracting services in
connection with the exploration for, or the extraction or development
of, natural resources
Free

Free

SEC. 120. SCROLLS OR TABLETS USED IN RELIGIOUS OBSERVANCES.

Part 4 of schedule 8 is amended—
(1) by striking out "and 854.30" in headnote 1 and inserting in
lieu thereof "854.30, and 854.40"; and
(2) by inserting in numerical sequence the following:
854.40

Scrolls or tablets of wood or
paper, commonly known
as Gohonzon, imported
for use in public or private religious observances, whether or not
any of the foregoing is
imported for the use of a
religious institution
Free

Free

SEC. 121. STEEL PIPES AND TUBES USED IN LAMPPOSTS.

(a) Subpart F of part 3 of schedule 6 is amended by inserting after
item 653.37 the following new item with the same indentation as "Of
brass" in item 653.37:
653.38

Tapered steel pipes and
tubes chiefly used as
parts of illuminating articles
11.9% ad val. 7.6% ad val.

45% ad val.

Ot)Xl) Notwithstemding any other provision of law, any reduction
authorized imder section 101 of the Trade Act of 1974 (19 U.S.C.
2111) in the rate of duty provided in any rate column for item 653.39
which takes effect after the date of enactment of this Act shall apply
to the rate of duty provided in the corresponding column for item
653.38.
(2) Whenever, after the application of paragraph (1), the rate of
duty provided for item 653.38 in the column numbered 1 is not
greater than the rate of duty provided for such item in the column
designated "LDDC", no rate of duty shall be provided for such item
in the column designated "LDDC".
SEC. 122. WEARING APPAREL.

The headnotes for part 6 of schedule 3 are amended by adding at
the end thereof the following new headnote:
"(3Xa) Except as provided inflt>)of this headnote, each garment is
to be separately classified under the appropriate tariff item, even if

98 STAT. 2955

PUBLIC LAW 98-573—OCT. 30, 1984

2 or more garments are imported together and designed to be sold
together at retail.
"(b) The provisions of paragraph (a) of this headnote shall not
apply to—
"(i) suits,
"(ii) pajamas and other nightwear,
"(iii) playsuits, washsuits, and similar apparel,
"(iv) judo, karate, and other oriental martial arts uniforms,
"(v) swimwear, and
"(vi) infants' sets designed for children who are not over 2
years of age.".
SEC. 123. RECENTLY DEVELOPED DAIRY PRODUCTS.

(a) Subpart D of part 4 of schedule 1 is amended—
(1) by adding at the end thereof the following new items with
the same indentation as "Malted milk" in item 118.30:
118.35
118.40
118.45

Whey protein concentrate
Lactalbumin
Milk protein concentrate..

10% ad val.
Free
0.20 per lb.

20% ad val.
Free
5.50 per lb.

and
(2) by inserting after the title of such subpart the following:
"Subpart D headnote:
" 1 . For purposes of item 118.45, the term
'milk protein concentrate' means any complete
milk protein (casein plus albumin) concentrate
that is 40 percent or more protein by weight.".

(b) The superior heading for item 493.12 of the Tariff Schedules of
the United States is amended by inserting "(other than a product
described in item 118.45)" after "value thereof.
SEC. 124. TELECOMMUNICATIONS PRODUCT CLASSIFICATION.

(a) The Schedules are amended as follows:
(1) Part 5 of schedule 6 is amended—
(A) by inserting after headnote 5 the following new headnote:
"6. For purposes of the tariff schedules, the term 'entertainment
broadcast band receivers' means those radio receivers designed
principally to receive signals in the AM (550-1650 kHz) and FM (88108 mHz) entertainment broadcast bands, whether or not capable of
receiving signals on other bands (e.g., aviation, television, marine,
public safety, industrial, and citizens band).",
(B) by striking out items 684.62 through 684.64 and inserting, in numerical sequence and subordinate to the superior
heading to item 684.62, the following new items:

684.57

684.58

Telephonic apparatus and
instruments and parts
thereof:
Telephone switching apparatus (including private branch exchange
and key system switching apparatus), and
parts and components
thereof
8.5% ad val.
Telephone sets and other
terminal
equipment
and parts thereof
8.5% ad val.

35% ad val.
35% ad val.

98 STAT. 2956

PUBLIC LAW 98-573—OCT. 30, 1984
684.59
684.63

684.65
684.66

684.67

Other
If Canadian article and
original motor vehicle
equipment (see headnote 2, part 6B, schedule 6)
OtherSwitching apparatus and
parts thereof
Terminal apparatus (including
teleprinting
and
teletypewriting
machines) and parts
thereof.
Other

35% ad val.

8.5% ad val.

Free
5.6% ad val.

4.7% ad val.

35% ad val.

5.6% ad val.
5.6% ad val.

4.7% ad val.
4.7% ad val.

35% ad val.
35% ad val.

(C) by inserting, in numerical sequence, the following new
item:
684.80

Communications satellites
(however provided for in
this part) and parts
thereof.
Free

Free

(D) by redesignating 685.10, 685.11, 685.13, 685.14, 685.15,
685.16, 685.17, 685.18, 685.20, 685.22, 685.33, 685.34, and
685.36 as 684.90, 684.92, 684.94, 684.96, 684.98, 685.00,
685.02, 685.04, 685.06, 685.08, 685.36, 685.37, and 685.38
respectively.
(E) by striking out items 685.23 through 685.31, including
the superior headings thereto, and inserting in lieu thereof
the following new items:
685.10

685.12
685.14
685.16
686.18
685.20
685.22

685.24

685.25
685.28
685.30
685.32

Other:
Radio receivers, other
than solid-state (tubeless)
Jolid-state (tubeless)
radio receivers:
Designed for motor-vehicle installation
Other:
Entertainment broadcast band receivers.
Other
Transceivers:
Citizens band:
Hand-held
Other
Low-power
radiotelephonic transceivers
operating on frequencies from 49.82 to
49.90 mHz
Other transceivers
Other transmission apparatus incorporating
reception apparatus:
Cordless handset telephones
Other
Other:
Transmitters
Other, including parts...

3 5 % ad val.

6 % ad val.

8.9% ad val.

8 % ad val.

3 5 % ad val.

7.7% ad val.
7.7% ad val.

% ad val.
% ad val.

3 5 % ad val.
3 5 % ad val.
3 5 % ad val.
3 5 % ad val.

6 % ad val.
6 % ad val.

3.8% ad val.
6 % ad val.

2.4% ad val.

3 5 % ad val.
3 5 % ad val.

6 % ad val.
6 % ad val.

3 5 % ad val.
3 5 % ad val.

6 % ad val.
6 % ad val.

3 5 % ad val.
3 5 % ad val.

98 STAT. 2957

PUBLIC LAW 98-573—OCT. 30, 1984
685.34

Radiotelegraphic
and
radio-telepnoiiic transmission and reception
apparatus, and radiobroadcasting transmission and reception apparatus, if certified for
use in civil aircraft (see
headnote 3, part 6C,
schedule 6)

Free

(F) by inserting, in numerical sequence and at the same
hierarchical level as the article description for item 685.40,
the following new item:
685.39

Telephone answering machines, and parts thereof
4.5% ad val.

3.9% ad val.

35% ad val.

(G) by striking out the article description for item 685.40
and inserting in lieu thereof the following: "Tape recorders
and dictation recording and transcribing machines (other
than telephone answering machines), and parts thereof,
(H) by striking out item 685.50 and inserting in lieu
thereof the following:
685.48

685.49

Other
Articles designed for connection to telegraphic
or telephonic apparatus
or instruments or to
tel^raphic or telephonic networks
5.9% ad val.
Other
5.9% ad val.

4.9% ad val.
4.9% ad val.

35% ad val.
35% ad val.

(I) by striking out item 688.15 and inserting, in numerical
sequence and subordinate to the superior heading to item
688.10, the following new items:
688.17
688.18

Other:
With modular telephone
Other

5.8% ad val.
5.8% ad val.

5.3% ad val.
5.3% ad val.

35% ad val.
35% eid val.

(J) by redesignating item 688.16 as item 688.19, with the
article description therefor subordinate to the article description for item 688.18 (as added by subparagraph (I)), and
(K) by striking out item 688.43 and inserting, in numerical sequence and subordinate to the superior heading to
item 688.34, the following new items:
688.41

688.42

Other:
Articles designed for connection to telegraphic
or telephonic apparatus
or instruments or to
telegraphic or telephonic networks
4.5% ad val.
Other
4.5% ad val.

3.9% ad val.
3.9% ad val.

35% ad val.
35% ad val.

(2) Subpart A of part 2 of schedule 7 is amended—
(A) by inserting in numerical sequence the following new
item:

98 STAT. 2958

PUBLIC LAW 98-573—OCT. 30, 1984
707.90

Optical fibers, whether or
not in bundles, cables or
otherwise put up, with or
without connectors and
whether mounted or not
mounted

13.1% ad val.

8.4% ad val.

65% ad val.

and
(B) by redesignating items 708.09 and 708.29 as 708.10 and
708.80, respectively.
(3) Subpart A of part 3 of schedule 8 is amended by striking
out the superior her-ding to item 837.00 and inserting in lieu
thereof the following: "Articles for the National Aeronautics
and Space Administration and articles (other than communications satellites and parts thereof) imported to be launched into
space under launch services agreements with the National
Aeronautics and Space Administration:".
(4) Subpart B of part 3 of schedule 8 is amended by striking
out the superior heading to item 842.10 and inserting in lieu
thereof the following: "Upon the request of the Department of
State, articles (other than communications satellites and parts
thereof) which are the property of a foreign government or of a
public international organization:".
(b)(1) The rate of duty in column numbered 1 of the Schedules (as
added or redesignated by subsection (a)) for each item set forth
below in the column headed "A" in the table under paragraph (3)
shall be subject to all staged rate reductions for the corresponding
item set forth below in the column headed " B " in such table which
were proclaimed by the President before the date of the enactment
of this Act.
(2) Whenever the rate of duty specified in column numbered 1 of
the Schedules for each item set forth below in the column headed
"A" in the table under paragraph (3) is reduced to the same level, or
to a lower level, as the corresponding rate of duty specified in the
column entitled "LDDC" of the Schedules for such item, the rate of
duty in such "LDDC" column shall be deleted.
(3) The table referred to in paragraphs (1) and (2) is as follows:
(A)
684.65
684.66
684.67
684.90
684.94
685.00
685.04
685.06
685.08
685.12
685.14
685.16
685.22
685.36
685.37
685.38
685.39
685.48
685.49
688.17
688.18
688.41
688.42
707.90
708.10
708.30

(B)
684.64
684.64
684.64
685.10
685.13
685.16
685.18
685.20
685.22
685.23
685.24
685.24
685.26
685.33
685.34
685.36
685.40
685.50
685.50
688.15
688.15
688.43
688.43
708.29
708.09
708.29

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 2959

(c) Subsection (a) of section 322 of the Tariff Act of 1930 (19 U.S.C.
1322(a)) is amended by adding at the end thereof the following new
sentence: "The authority delegated to the Secretary by this subsection shall not extend to communications satellites and components
and parts thereof.".
SEC. 125. FRESH ASPARAGUS.

Subpart A of part 8 of schedule 1 is amended by adding before the
superior heading to items 135.10 through 135.17 (and at equivalent
indentation with such heading and items) the following new items:
135.03

135.05

Asparagus:
If fresh or chilled; entered
during the
period from September 15 to November
15, inclusive, in any
year; and transported
to the United States
by air
5% ad val.
Other
25% ad val.

50% ad val.
50% ad val.

SEC. 126. CHIPPER KNIFE STEEL.

Effective with respect to articles entered, or withdrawn from
warehouse for consumption—
(3) Paragraphs (1) and (2) of section 126 of the bill are amended to
read as follows:
(1) on or after April 1,1985—
(A) item 606.93 is amended by striking out "8.3% ad val.
+ additional duties (see headnote 4)" and inserting in lieu
thereof "2% ad val.",
(B) such item 606.93 is further amended by striking out
"6% ad val. + additional duties (see headnote 4)" in the
LDDC column, and
(C) item 911.29 of the Appendix is repealed; and
(2) on or after April 1, 1986, item 606.93 is amended bv
striking out "2% ad val." and inserting in lieu thereof "Free .
SEC. 127. IMPLEMENTATION OF CUSTOMS CONVENTION ON CONTAINERS,
1972.

(a) Subpart C of part 1 of schedule 8 is amended—
(1) by amending headnote 1 to such subpart by inserting ",
accessories and equipment" immediately before the period at
the end thereof; and
(2) by amending the article description for item 808,00 by
striking out ", and repair components" and all that follows
thereafter and inserting in lieu thereof ", repair components for
containers of foreign production which are instruments of international traffic, and accessories and equipment for such containers, whether the accessories and equipment are imported
with a container to be reexported separately or with another
container, or imported separately to be reexported with a
container.".
(b) Subsection (a) of section 322 of the Tariff Act of 1930 (19 U.S.C.
1322(a)) is amended by striking out "granted the customary exceptions" and inserting in lieu thereof "excepted".

Supra.

98 STAT. 2960

PUBLIC LAW 98-573—OCT. 30, 1984

Subtitle C—Temporary Changes in Tariff Treatment
SEC. 131. FRESH, CHILLED, OR FROZEN BRUSSELS SPROUTS.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new items:
903.29

Brussels sprouts, fresh,
chilled, or frozen, but not
reduced in size and not
otherwise prepared or
preserved (provided for in
Item 137.71, part 8A,
schedule 1)
12.5% ad val. No change

903.33

Brussels sprouts, fresh,
chilled, or frozen, and
cut, sliced or otherwise
reduced in size, but not
otherwise prepared or
preserved (provided for in
Item 138.46, part 8A,
schedule 1)
7% ad val.

No change

On or before
12/31/87

On or before
12/31/87

SEC. 132. /3-NAPHTHOL.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
907.31

/3-Naphthol (provided for in
item 403.29, part IB,
schedule 4)
Free

No change

On or before
12/31/87

SEC. 133. 4-CHLORO-3-METHYLPHENOL.

Item 907.08 of the Appendix is amended by striking out "6/30/84"
and inserting in lieu thereof "12/31/87".
SEC. 134. TETRAAMINO BIPHENYL.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
907.32

(pi

vided for in item 404.90,
part IC, schedule 4)
Free

No change

On or before
12/31/88

SEC. 135. 6-AMINO-1-NAPHTHOL-3-SULFONIC ACID.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
907.34

6-Amino-l-naphthol-3sulfonic acid (provided for
in item 405.00, part IB,
schedule 4)
Free

No change

On or before
12/31/87

SEC. 136. DSA.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:

98 STAT. 2961

PUBLIC LAW 98-573—OCT. 30, 1984
907.35

2-(4-Aminophenyl)-6methylbenzo-thiazole-7sulfonic acid (provided for
in item 406.39, part IB,
schedule 4)
i
Free

No change

On or before
12/31/87

SEC. 137. GUANIDINES.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
906.50

Diphenyl guanidine and dio-tolyl guanidine (provided for in item 405.52, part
IB, schedule 4)
Free

No change

On or before
12/31/87

SEC. 138. CERTAIN ANTIBIOTICS.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
906.51

(6R,7R>-7-[(R)-2-Amino-2phenylacetamido>3methyl-8-oxo-54hia-lazabicyclo(4.2.0]octr2«ne2-carboxybc acid disolvate (provided for in item
406.42, part IB, schedule
4)
Free

No change

On or before
12/31/87

SEC. 139. ACETYLSULFAGUANIDINE.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
907.33

Acebrlsulfaguanidine (provided for in item 406.56,
part IB, schedule 4)
Free

No change

On or before
12/31/87

SEC. 140. FENRIDAZON-POTASSIUM.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
907.41

Mixtures of potassiimi Mpchlorophenyl)-l,4-dihydro6-methyl-4-oxopyridazine3-caifooxylate
('fenridazon-potassium') and formulation adjuvants (provided for in item 408.38,
part IC, schedule 4)
Free

No change

On or before
12/31/87

SEC. 141. UNCOMPOUNDED ALLYL RESINS.

Item 907.16 of the Appendix is amended by striking out "9/30/84"
and inserting in lieu thereof "12/31/87".

98 STAT. 2962

PUBLIC LAW 98-573—OCT. 30, 1984

SEC. 142. SULFAMETHAZINE.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
907.36

Sulfamethazine (provided
for in item 411.24, part
IC, schedule 4)
Free

Free

O n or before
12/31/87

SEC. 143. SULFAGUANIDINE.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
907.37

Sulfaguanidine
(provided
for in item 411.27, peut
IC, schedule 4)
Free

Free

On or before
12/31/87

SEC. 144. TERFENADINE.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
907.25

Terfenadine (provided for in
item 411.58, part IC,
schedule 4)
Free

No change

On or before
12/31/87

SEC. 145. SULFATHIAZOLE.

(a) Item 907.19 is amended to read as follows:
907.19

96 Stat. 2341.

Sulfathiazole (provided for
in item 411.80, part IC,
schedule 4)
Free

Free

On or before
12/31/87

(h) Section 136 0)) and (c) of the Act entitled "An Act to reduce
certain duties, to suspend temporarily certain duties, to extend
certain existing suspensions of duties, and for other purposes" (approved January 12,1983; Public Law 97-446) is repealed.
SEC. 146. SULFAQUINOXALINE AND SULFANILAMIDE.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
907.38

Sulfaquinoxedine and sulfanilamide (provided for in
item 411.87, part IC,
schedule 4)
Free

Free

On or before
12/31/87

SEC. 147. DICYCLOMINE HYDROCHLORIDE AND MEPENZOLATE BROMIDE.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:

98 STAT. 2963

PUBLIC LAW 98-573—OCT. 30, 1984
906.53

Dicyclomine hydrochloride
and mepenzolate bromide
(provided for in item
412.02, part IC, schedule
4)
Free

No change

On or before
12/31/87

SEC. 148. AMIODARONE.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following:
907.18

Amiodarone (provided for
in item 412.12, part IC,
schedule 4)
Free

No change

On or before
12/31/87

SEC. 149. DESIPRAMINE HYDROCHLORIDE.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
906.54

Desipramine hydrochloride
(provided for in item
412.35, part IC, schedule
4)
Free

No change

On or before
12/31/87

SEC. 150. CLOMIPHENE CITRATE.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
907.42

Clomiphene citrate (provided for in item 412.50, part
IC, schedule 4)
Free

No change

On or before
12/31/87

SEC. 151. YTTRIUM BEARING MATERIALS AND COMPOUNDS.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
907.51

Yttrium bearing materials
and compounds containing by weight more than
19% but less than 85%
yttrium oxide equivalent
(provided for in items
423.00 or 423.96, part 2C,
schedule 4, or item
603.70, part 1, schedule 6).. Free

No change

On or before
12/31/88

SEC. 152. TARTARIC ACID AND CHEMICALS.

Items 907.65, 907.66, 907.68, and 907.69 of the Appendix are each
amended by striking out "6/30/84" and inserting in lieu thereof
"12/31/88".
SEC. 153. CERTAIN MIXTURES OF MAGNESIUM CHLORIDE AND MAGNESIUM NITRATE.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:

98 STAT. 2964

PUBLIC LAW 98-573—OCT. 30, 1984
906.52

Mixtures of 5^:hloro-2methyl-4-i8othiazolia-^
one, 2-methyl-4-isothiazolin-S-one,
magnesium
chloride, and magnesium
nitrate (provided for in
item 432.25, part 2E.
schedule 4)
Free

No change

On or before
12/31/87

SEC. 154. NICOTINE RESIN COMPLEX.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
907.63

Nicotine resin complex
(provided for in item
^ . 1 3 , part 3B, schedule
4)
Free

No change

On or before
12/31/87

SEC. 155. RIFAMPIN.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
906.99

Rifampin (provided for in
item 437.32, part 3B,
schedule 4)
Free

No change

On or before
12/31/87

SEC. 156. LACTULOSE.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
907.76

Lactulose ^mmded for in
item 439.50, part 3C,
schedule 4)
Free

No change

On or before
12/31/87

SEC. 157. IRON-DEXTRAN COMPLEX.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
907.79

Iron-dextran complex (provided for in item 44().00,
part 3C, schedule 4)
Free

No change

On or before
12/31/87

SEC. 158. NATURAL GRAPHITE.

Item 909.01 of the Appendix is amended by striking out "12/31/
84" and inserting in lieu thereof "12/31/87".
SEC. 159. ZINC.

Items 911.00, 911.01, 911.02, and 911.03 of the Appendix are each
amended by striking out "6/30/84" and inserting in lieu thereof
"12/31/89".

98 STAT. 2965

PUBLIC LAW 98-573—OCT. 30, 1984
SEC. 160. CERTAIN DIAMOND TOOL BLANKS.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
910.00

Tool blanks and
drill
blanks, wholly or in chief
value of industrial diamonds (provided for in
item 520.21, part IH, or
item 523.91, part IK,
schedule 5)
Free

30% ad val.

On or before
12/31/87

SEC. 161. CLOCK RADIOS.

Item 911.95 of the Appendix is amended by striking out "9/30/84"
and inserting in lieu thereof "12/31/86".
SEC. 162. LACE-BRAIDING MACHINES.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
912.11

Decorative
lace-braiding
machines using the jacquard system, and parts
thereof (provided for in
items 670.25 and 670.74,
part 4E, schedule 6)
Free

No change

On or before
12/31/87

SEC. 163. CERTAIN MAGNETRON TUBES.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
912.02

Magnetron tubes with an
operating frequency of
2.450 GHz and a minimum power of at least
300 watts and a maximum pxjwer not greater
than 2000 watts (provided
for in item 684.28, part 5,
schedule 6)
Free

No change

On or before
12/31/86

SEC. 164. NARROW FABRIC LOOMS.

(a) Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
912.04

Power driven weaving machines for weaving fabrics
not over 12 inches in
width (provided for in
item 670.14, part 4E,
schedule 6)
Free

No change

On or before
12/31/87

(h) Subpart E of part 4 of schedule 6 is amended by adding the
following new headnote:

98 STAT. 2966

PUBLIC LAW 98-573—OCT. 30, 1984
"Subpart E headnote:
1. ^or purposes of applying item 670.74 to
parts of articles provided
for under item 912.04,
any such inrt that is entered, or withdrawn from
warehouse for consumption, during the effective
period of item 912.04
shall be dutiable at the
rate that would apply if
that item had not Men
enacted.".

SEC. 165. UMBRELLA FRAMES.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical order the following new item:
912.45

Frames for hand-held umbrellas chiefly used for
protection against rain
(provided for in item
751.20, part 8B, schedule
7)
Free

No change

On or before
12/31/86

SEC. 166. CRUDE FEATHERS AND DOWN.

Items 903.70 and 903.80 of the Appendix are each amended by
striking out "On or before 6/30/84" and inserting in lieu thereof
"On or before 12/31/87".
SEC. 167. CANNED CORNED BEEF.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
903.15

Corned beef in airtight containers (provided for in
item 107.48, part 2B,
schedule 1)
3% ad val.

No change

On or before
12/31/89

SEC. 168. HOVERCRAFT SKIRTS.

Item 905.40 of the Appendix is amended—
(1) by striking out "manmade" and inserting in lieu thereof
"man-made", and
(2) by striking out "6/30/83" and inserting in lieu thereof
"12/31/87".
SEC. 169. DISPOSABLE SURGICAL DRAPES AND STERILE GOWNS.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:

98 STAT. 2967

PUBLIC LAW 98-573—OCT. 30, 1984
905.50

Bonded fiber fabric disposable gowns, sterilized or
in immediate packings
ready for sterilization, for
use in performing surgical procedures, of manmade fibers (provided for
in items 379.96 and
383.92, part 6F, schedule
3) and bonded fiber fabric
disposable
surgical
drapes, of manmade
fibers (provided for in
item 389.62, part 7B,
schedule 3)
5.6% ad val.

26.5% ad val. On or before
12/31/88

SEC. 170. MXDA.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new items:
907.03

m-Xylenediamine (provided
for in item 404.88, part
IB, schedule 4)
Free

No change

907.04

1,3-Bis[aminomethyl]
cyclohexane (provided for
in item 407.05, part IB,
schedule 4)
Free

On or before
12/31/87

No change

On or before
12/31/87

SEC. 171.4,4-BIS(a,a-DIMETHYLBENZYL) DIPHENYLAMINE.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following item:
907.06

4,4'-Bis(a,a-dimethylbenzjrl) diphenylamine
(provided for in item
404.88, part IB, schedule
4)
Free

No change

On or before
12/31/87

SEC. 172. FLECAINIDE ACETATE.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
907.21

Flecainide acetate (provided
for in item 412.12, part
IC, schedule 4)
Free

No change

On or before
12/31/87

SEC. 173. CAFFEINE.

Item 907.22 of the Appendix is amended—
(1) by striking out "6% ad val." and inserting in lieu thereof
"4.1% ad val."; and
(2) by striking out "12/31/83" and inserting in lieu thereof
"12/31/87".
SEC. 174. WATCH CRYSTALS.

(a) Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 2968

Rates of Duty
1

909.40

Watch glasses other than round
watch glasses (provided for in
item 547.13, part 3C, schedule
5)
5.9% ad
val.

LDDC

4.9% ad
val.

2

No
On or
before
change
12/31/
87

(b) Effective with respect to articles provided for in item 909,40 (as
added by subsection (a)) that are entered, or withdrawn from warehouse for consumption, on or after each of the dates set forth below,
column 1 for such item is amended by striking out the rate of duty
in effect on the day before such date and inserting in lieu thereof
the rate of duty appearing below next to each such date:
Date:
January 1,1985
January 1,1986

Rate of duty:
5.6% ad val.
5.2% ad val.

SEC. 175. UNWROUGHT LEAD.

94 Stat. 3557.

(a) Item 911.50 of the Appendix is amended by striking out
"6/30/83" and inserting in lieu thereof "12/31/88".
(b) Section 114 of Public Law 96-609 is amended by striking out
"July 1,1983" in subsection 0)) and inserting in lieu thereof "January 1,1989".
SEC. 176. FLAT KNITTING MACHINES.

Item 912.13 of the Appendix is amended—
(1) by striking out "(provided for in item 670.19 or 670.20,"
and inserting in lieu thereof ", and parts thereof (provided for in
items 670.19, 670.20, and 670.74,"; and
(2) by striking out "6/30/83" and inserting in lieu thereof
"12/31/88".
SEC. 177. CERTAIN MENTHOL FEEDSTOCKS.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
907.13

Mixtures containing not
less than 90 percent by
weight of stereoisomers
of 2-isopropyl-5-methylcyclohexanol, but containing not more than 30 percent by weight of any one
such stereoisomer (provided for in item 407.16, part
IB, schedule 4)
Free

No change

On or before
12/31/87

SEC. 178.2-METHYL-4-CHLOROPHENOL.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
906.97

2-Methyl-4-chlorophenol
(provided for in item
403.56, part IB, schedule
4)
Free

No change

On or before
12/31/87

98 STAT. 2969

PUBLIC LAW 98-573—OCT. 30, 1984
SEC. 179. UNWROUGHT ALLOYS OF COBALT.

Item 911.90 of the Appendix is amended by striking out "6/30/83"
and inserting in lieu thereof "12/31/87".
SEC. 180. CIRCULAR KNITTING MACHINES.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item with a superior heading
that has the same indentation as "Powerdriven" in item 912.13:
912.17

Cylinder, double cylinder,
and dial knitting machines and parts thereof,
all the foregoing designed
for sweater strip or garment length knitting
(provided for in items
670.17 and 670.74, part
4E, schedule 6)
Free

No change

On or before
12/31/89

SEC. 181. o-BENZYL-p-CHLOROPHENOL.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
907.23

o-Benzyl-pKjhlorophenol
(provided for in item
408.16, part IC, schedule
4)
Free

No change

On or before
12/31/87

SEC. 182. CERTAIN BENZENOID CHEMICALS.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new items:
906.30

3,5,6-Trichlorosalicylic acid
(provided for in item
404.46, part IB, schedule
4)
Free

Free

m-Aminophenol (provided
for in item 404.92, part
IB, schedule 4)
Free

On or before
12/31/87

906.32

Free

906.38

p-Acetamidobenzenesulfonyl chloride (N-Acetylsulfanilyl chloride) (provided
for in item 405.33, part
IB, schedule 4)
Free

On or before
12/31/87

Free

On or before
12/31/87

SEC. 183. m-TOLUIC ACID.

Subpart B of part 1 of the Appendix is amended by inserting in
numerical sequence the following new item:
906.57

m-Toluic acid (provided for
in item 404.28, part IB,
schedule 4)
Free

No change

On or before
12/31/87

98 STAT. 2970

PUBLIC LAW 98-573—OCT. 30, 1984
Subtitle D—Technical Amendments

SEC. 191. TECHNICAL AND CONFORMING AMENDMENTS.

19 use 1202.

(a) The schedules are further amended as follows:
(1) Headnote 9(a) of the general headnotes is amended by
striking out "warehouse, for consmnption" and inserting in lieu
thereof "warehouse for consumption,".
(2) The superior heading to items 346.05 and 346.10 and the
superior heading to items 346.15 through 346.24 are each
amended by striking out "Fabric" and inserting in lieu thereof
"Fabrics".
(3) The article description for item 535.13 is amended by
aligning the indentation of that description with that of the
article description for item 535.12.
(4) Headnote l(ii) to subpart D of part 6 of schedule 6 is
amended by striking out "5(e)" and inserting in lieu thereof
"5(g)".
(5) Item 642.34 is amended by striking out "12% ad val." and
inserting in lieu thereof "10% ad val.".
(6) Headnote 6 to subpart E of part 2 of schedule 7 is
amended—
(A) by striking out "through (h)" in paragraph (a) and
inserting in lieu thereof "through (ij)";
(B) by striking out "paragraph (c)" in paragraph (b) and
inserting in lieu thereof "paragraph (d)";
(C) by striking out "paragraph (d)" in subparagraph
(d)(ii)(I) and inserting in lieu thereof "paragraph (e)"; and
(D) by redesignating paragraph (i) as paragraph (ij).
(7) Item 737.73 is amended by inserting a conmia immediately
after "ware".
(8) The article description for each of items 745.41 and 745.42
is amended by aligning the indentation of that description with
that of the article description for item 745.34.
(9) The article description for each of items 870.50, 870.55, and
870.60 is amended by aligning the indentation of that description with that of the article description for item 870.25.
(b) The Appendix is amended as follows:
(1) The article description for item 903.25 is amended to read
as follows: "Culled carrots, fresh or chilled, in immediate containers each holding more than 100 poimds (provided for in item
135.42, part 8A, schedule 1), if entered for consumption during
the period from August 15 in any year to the 15th day of the
following February, inclusive".
(2) Item 906.10 is amended by striking out "386.09" and
inserting in lieu thereof "386.13".
(3) The article description for item 906.12 is amended—
(A) by aligning the indentation of that description with
that of the article description for item 906.10; and
(B) by inserting ", part 6F," after "383.50".
(4) The article description for item 907.00 is amended to read
as follows: "p-Hydroxybenzoic acid (provided for in item 404.42,
part IB, schedule 4)".
(5) The article description for item 907.01 is amended to read
as follows: "Triphenyl phosphate (provided for in item 409.34,
part IC, schedule 4)".

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 2971

(6) The article description for item 907.14 is amended to read
as follows: "Mixtures of 3-ethylbiphenyl (m-ethylbiphenyl) and
4-ethylbiphenyl (p-ethylbiphenyl) (provided for in item 407.16,
part IB, schedule 4)".
(7) The article description for item 907.15 is amended to read
as follows: "l,l-Bis(4-chlorophenyl)-2,2,2-trichloroethanol (Dicofol) (provided for in item 408.28, part IC, schedule 4)".
(8) Item 912.30 is amended by striking out "737.21,".
(c) The Educational, Scientific, and Cultural Materials Importation Act of 1982 (Public Law 97-446,19 U.S.C. 1202 note) is amended
as follows:
(1) Section 162 is amended by inserting a comma after "Architectural" in the article description for item 273.52 (as set forth
in paragraph (2) of such section).
(2) Section 163(c) is amended—
(A) by striking out "headnote 2 as headnote 1," in paragraph (1) and inserting in lieu thereof "headnotes 2 and 3 as
headnotes 1 and 2, respectively,"; and
(B) by striking out "models) and wall charts of an educational, scientific or cultural character," and inserting in
lieu thereof "models), globes, and wall charts of an educational, scientific or cultural character;" in the article
description for item 870.35 (as set forth in paragraph (3) of
such section).
(3) Section 165 is amended—
(A) by redesignating items 870.50, 870.55, and 870.60 (as
set forth in subsection (b)(1) of such section) as items 870.65,
870.66, and 870.67, respectively;
(B) by aligning the indentation of the article description
of item 870.67 (as redesignated by paragraph (1)) with the
indentation of "Articles for the blind:" immediately preceding items 870.65 and 870.66 (as so redesignated);
(C) by amending headnote 2 of part 7 of schedule 8 (as set
forth in subsection (b)(2) of such section)—
(i) by redesignating it as headnote 3; and
(ii) by striking out "870.50, 870.55, and 870.60—" and
inserting in lieu thereof "870.65, 870.66, and 870.67—".
(d) Section 504 of the Tariff Act of 1930 (19 U.S.C. 1504) is
amended—
(1) by striking out ", his consignee, or agent" in subsection (a)
and inserting in lieu thereof "of record";
(2) by striking out ", his consignee, or agent" and ", consignee,
or his agent" in subsection Ot)) and inserting in lieu thereof "of
record";
(3) by striking out "or consignee" each place it appears in
subsection (c) and inserting in lieu thereof "of record"; and
(4) by striking out ", his consignee, or agent" in subsection (d)
and inserting in lieu thereof "of record".
(e) Headnote 3(a)(i) of the general headnotes and rules of interpretation is amended by striking out "of schedule 7, part 2, subpart E,
and except as provided in headnote 4 of schedule 7, part 7, subpart
A" and inserting in lieu thereof "of subpart E of part 2 of schedule 7,
and except as provided in headnote 3 of subpart A of part 7 of
schedule 7".

19 USC 1202.

98 STAT. 2972

PUBLIC LAW 98-573—OCT. 30, 1984
Subtitle E—Effective Dates

SEC. 195. EFFECTIVE DATES.

19 u s e 1322
^ot®19 use 1322
note.

29 UST 3707.
19 use 1514.

19 use 1322
^°^-

(a) Except a s provided in section 126 a n d in subsections (b) a n d (c),
the amendments made by subtitles B, C, and D shall apply with
respect to articles entered on or after the 15th day after the date of
the enactment of this Act.
(b)(1) The amendment made by sections 117 and 124 shall apply
with respect to articles entered on or after January 1,1985.
(2) The amendments made by section 127 shall apply with respect
to articles entered on or after a date to be proclaimed by the
President which shall be consonant with the entering into force for
the United States of the Customs Convention on Containers, 1972.
(c)(1) Notwithstanding section 514 of the Tariff Act of 1930 or any
other provision of law, upon proper request filed with the customs
officer concerned on or before the 90th day after the date of the
enactment of this Act the entry of any article described in paragraph (2) shall be treated as provided in such paragraph.
(2)(A) In the case of the application of any amendment made by
section 133, 141, 145, 152, 159, 161, 166, 168, 173, 175, 176, or 191 (a)
or (b) to any entry—
(i) which was made after the applicable date and before the
15th day after the date of the enactment of this Act; and
(ii) with respect to which there would have been no duty or a
lesser duty if the amendment made by such section applied to
such entry;
such entry shall be liquidated or reliquidated as though such entry
had been made on the 15th day after the date of the enactment of
this Act.
(B) For purposes of subparagraph (A), the term "applicable date"
means—
(i) in the case of section 191 (a) or (b), January 12, 1983,
(ii) in the case of sections 168, 175, and 176, June 30, 1983,
(iii) in the case of section 173, December 31,1983,
(iv) in the case of sections 133, 152, 159, and 166, June 30,
1984,
(v) in the case of section 145, January 1,1984, and
(vi) in the case of sections 141 and 161, September 30, 1984.
(C) In the case of the application of any amendment made by
section 140 or 153 to any entry—
(1) that was made before the 15th day after the date of the
enactment of this Act;
(2) that was unliquidated, or the liquidation of which was not
final, on such 15th day; and
(3) with respect to which there would have been no duty if the
amendment made by such section applied to such entry;
such entry shall be liquidated as though the entry had been made on
such 15th day.
(d) For purposes of this section—
(1) The term "entered" means entered, or withdrawn from
warehouse for consumption in the customs territory of the
United States.
(2) The term "entry" includes any withdrawal from warehouse.

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 2973

TITLE II—CUSTOMS AND MISCELLANEOUS
AMENDMENTS
Subtitle A—Amendments to the Tariff Act of 1930
SEC. 201. REFERENCE.

Elxcept as otherwise expressly provided, whenever in this subtitle
an amendment or repeal is expressed in terms of an amendment to,
or repeal of, a title, subtitle, part, section, or other provision, the
reference shall be considered to be made to a title, subtitle, part,
section, or other provision of the Tariff Act of 1930 (19 U.S.C. 1202 et
seq.).
SEC. 202. DRAWBACK.

Section 313 of the Tariff Act of 1930 (19 U.S.C. 1313) is amended—
(1) by amending subsection (j)—
(A) by redesignating paragraph (2) as paragraph (4), and
(B) by inserting after paragraph (1) the following new
paragraphs:
"(3) If there is, with respect to imported merchandise on which
was paid any duty, tax, or fee imposed under Federal law because of
its importation, any other merchandise (whether imported or domestic) that—
"(A) is fungible with such imported merchandise;
"(B) is, before the close of the three-year period beginning on
the date of importation of the imported merchandise, either
exported or destroyed under Customs supervision;
"(C) before such exportation or destruction—
"(i) is not used within the United States, and
"(ii) is in the possession of the party claiming drawback
under this paragraph; and
"(D) is in the same condition at the time of exportation or
destruction as was the imported merchandise at the time of its
importation;
then upon the exportation or destruction of such other merchandise
the amount of each such duty, tax, and fee paid regarding the
imported merchandise shall be refunded as drawback, but in no case
may the total drawback on the imported merchandise, whether
available under this paragraph or any other provision of law or any
combination thereof, exceed 99 percent of that duty, tax, or fee.
"(4) Packaging material that is imported for use in packaging or
repackaging imported merchandise to which paragraph (1) applies
shall be eligible under the same conditions provided in such paragraph for refund, as drawback, of 99 per centum of any duty, tax, or
fee imposed under Federal law on the importation of such material."; and
(2) by redesi^ating subsections (k) and (1) as subsections (1)
and (m), respectively; and
(3) by inserting after subsection (j) the following new subsection:
"(k) For purposes of subsections (a) and (b), the use of any domestic
merchandise acquired in exchange for imported merchandise of the
same kind and quality shall be treated as the use of such imported
merchandise if no certificate of delivery is issued with respect to
such imported merchandise.".

98 STAT. 2974

PUBLIC LAW 98-573—OCT. 30, 1984

SEC. 203. PUBLIC DISCLOSURE OF CERTAIN MANIFEST INFORMATION.

Public
availability.

Section 431 (19 U.S.C. 1431) is amended—
(1) by striking out the period at the end of the paragraph
designated as "Third" in subsection (a) and inserting in lieu
thereof "; and the names of the shippers of such merchandise.";
and
(2) by adding at the end thereof the following new subsection:
"(c)(1) Except as provided in subparagraph (2), the following information, when contained in such manifest, shall be available for
public disclosure:
"(A) The name and address of each importer or consignee and
the name and address of the shipper to such importer or
consignee, unless the importer or consignee has made a biennial
certification, in accordance with procedures adopted by the
Secretary of the Treasury, claiming confidential treatment of
such information.
"(B) The general character of the cargo.
"(C) The number of packages and gross weight.
"(D) The name of the vessel or carrier.
"(E) The port of loading.
"(F) The port of discharge.
"(G) The country or origin of the shipment.
"(2) The information listed in paragraph (1) shall not be available
for public disclosure if—
"(A) the Secretary of the Treasury makes an affirmative
finding on a shipment-by-shipment basis that disclosure is likely
to pose a threat of personal injury or property damage; or
"(B) the information is exempt under the provisions of section
552(b)(1) of title 5 of the United States Code.
"(3) The Secretary of the Treasury, in order to allow for the timely
dissemination and publication of the information listed in paragraph (1), shall establish procedures to provide access to manifests.
Such procedures shall include provisions for adequate protection
against the public disclosure of information not available for public
disclosure from such manifests.".
SEC. 204. VIRGIN ISLANDS EXCURSION VESSELS.

Section 441(3) (19 U.S.C. 1441(3)) is amended to read as follows:
"(3) Vessels carrying passengers on excursion from the United
States Virgin Islands to the British Virgin Islands and returning,
and licensed yachts or undocumented American pleasure vessels not
engaged in trade: Provided, That such vessels do not in any way
violate the customs or navigation laws of the United States and have
not visited any hovering vessel: Provided further. That the master of
any such vessel which has on board any article required by law to be
entered shall be required to report such article to the appropriate
customs officer within twenty-four hours after arrival.".
SEC. 205. UNLAWFUL IMPORTATION
VEHICLES.

OR EXPORTATION

OF CERTAIN

Part V of title IV (19 U.S.C. 1581 et seq.) is amended by adding at
the end thereof the following new section:
19 u s e 1627a.

"SEC. 627. UNLAWFUL IMPORTATION OR EXPORTATION OF CERTAIN VEHICLES; INSPECTIONS.

"(a)(1) Whoever knowingly imports, exports, or attempts to import
or export—

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 2975

"(A) Any stolen self-propelled vehicle, vessel, aircraft, or part
of a self-propelled vehicle, vessel, or aircraft; or
"(B) any self-propelled vehicle or part of a self-propelled
vehicle from which the identification number has been
removed, obliterated, tampered with, or altered;
shall be subject to a civil penalty in an amount determined by the
Secretary, not to exceed $10,000 for each violation.
"(2) Any violation of this subsection shall make such self-propelled
vehicle, vessel, aircraft, or part thereof subject to seizure and forfeiture under this Act.
"(h) A person attempting to export a used self-propelled vehicle
shall present, pursuant to regulations prescribed by the Secretary,
to the appropriate customs officer both the vehicle and a document
describing such vehicle which includes the vehicle identification
number, before lading if the vehicle is to be transported by vessel or
aircraft, or before export if the vehicle is to be transported by rail,
highway, or under its own power. Failure to comply with the
regulations of the Secretary shall subject such person to a civil
penalty of not more than $500 for each violation.
"(c) For purposes of this section—
"(1) the term 'self-propelled vehicle' includes any automobile,
truck, tractor, bus, motorcycle, motor home, self-propelled agricultural machinery, self-propelled construction equipment, selfpropelled special use equipment, and any other self-propelled
vehicle used or designed for running on land but not on rail;
"(2) the term 'aircraft' has the meaning given it in section
101(5) of the Federal Aviation Act of 1958 (49 U.S.C. 1301(5));
"(3) the term 'used' refers to any self-propelled vehicle the
equitable or legal title to which has been transferred by a
manufacturer, distributor, or dealer to an ultimate purchaser;
and
"(4) the term 'ultimate purchaser' means the first person,
other than a dealer purchasing in his capacity as a dealer, who
in good faith purchases a self-propelled vehicle for purposes
other than resale.
"(d) Customs officers may cooperate and exchange information
concerning motor vehicles, off-highway mobile equipment, vessels,
or aircraft, either before exportation or after exportation or importation, with such Federal, State, local, and foreign law enforcement
or governmental authorities, and with such organizations engaged
in theft prevention activities, as may be designated by the
Secretary.".
SEC. 206. INCREASE IN AMOUNT FOR INFORMAL ENTRY OF GOODS.

Paragraph (1) of section 498 (19 U.S.C. 1498(1)) is amended—
(1) by striking out "$250" and inserting in lieu thereof
"$1,250"; and
(2) by inserting before the semicolon at the end thereof: ",
except that this paragraph does not apply to articles valued in
excess of $250 classified in—
"(A) schedule 3
"(B) parts 1, 4A, 7B, 12A, 12D, and 13B of schedule 7, and
"(C) parts 2 and 3 of the Appendix,
of the Tariff Schedules of the United States, or to any other
article for which formal entry is required without regard to
value.".

49 use app.
l^oi.

98 STAT. 2976

PUBLIC LAW 98-573—OCT. 30, 1984

SEC. 207. CERTAIN COUNTRY OF ORIGIN MARKING REQUIREMENTS.

Section 304 (19 U.S.C. 1304) is amended—
(1) by redesignating subsections (c), (d), and (e) as subsections
(f), (g), and (h), respectively;
(2) by inserting immediately £ifter subsection (b) the following
new subsections:
"(c) MARKING OF CERTAIN PIPE AND FITTINGS.—No exception may

be made under subsection (aX3) with respect to pipes of iron, steel, or
stainless steel, to pipe fittings of steel, stainless steel, chrome-moly
steel, or cast and malleable iron each of which shall be marked with
the English name of the country of origin by means of die stamping,
cast-in-mold lettering, etching, or engraving.
"(d) MARKING OF COMPRESSED GAS CYLINDERS.—NO exception may

be made under subsection (aX3) with respect to compressed g£is
cylinders designed to be used for the transport and storage of
compressed gases whether or not certified prior to exportation to
have been made in accordance vsrith the safety requirements of
sections 178.36 through 178.68 of title 49, Code of Federal Regulations, each of which shall be marked with the English name of the
country of origin by means of die stamping, molding, etching, raised
lettering, or 2ui equally permanent method of marking.
"(e) MARKING OF CERTAIN MANHOLE RINGS OR FRAMES, COVERS,
AND ASSEMBLIES THEREOF.—No exception may be made under sub-

section (aX3) with respect to manhole rings or frames, covers, and
assemblies thereof each of which shall be marked on the top surface
with the English name of the country of origin by means of die
stamping, cast-in-mold lettering, etching, or engraving."; and
(3) by striking out "subsection (c)" in subsection (g) (as so
redesignated) and inserting in lieu thereof "subsection (f)".
SEC. 208. EQUIPMENTS AND REPAIRS OF CERTAIN VESSELS EXEMPT
FROM DUTIES.

Section 466(e) (19 U.S.C. 1466(e)) is amended to read as follows:
"(eXD In the case of any vessel referred to in subsection (a) that
arrives in a port of the United States two years or more after its last
departure from a port in the United States, the duties imposed by
t h ^ section shall apply only with respect to—
"(A) fish nets and netting, and
"(B) other equipments and parts thereof, repair parts and
materials purchased, or repairs made, during the first six
months after the last departure of such vessel from a port of the
United States.
"(2) If such vessel is designed and used primarily for transporting
passengers or property, paragraph (1) shall not apply if the vessel
departed from the United States for the sole purpose of obtaining
such equipments, parts, materials, or repairs.".
SEC. 209. ARTICLES RETURNED FROM SPACE.

(a) Part m of title IV (19 U.S.C. 1481 et seq.) is amended by adding
the following new section:
19 u s e 1484a.

"SEC. 484a. ARTICLES RETURNED FROM SPACE NOT TO BE CONSTRUED AS
IMPORTATION.

"The return of articles from space shall not be considered an
importation, and an entry of such articles shall not be required, if:
"(1) such articles were previously launched into space from
the customs territory of the United States aboard a spacecraft

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 2977

operated by, or under the control of, United States persons and
owned—
"(A) wholly by United States persons, or
"(B) in substantial part by United States persons, or
"(C) by the United States;
"(2) such articles were maintained or utilized while in space
solely on board such spacecraft or aboard another spacecraft
which meets the requirements of paragraph (1) (A) through (C)
of this section; and
"(3) such articles were returned to the customs territory
directly from space aboard such spacecraft or aboard another
spacecraft which meets the requirements of paragraph (1) (A)
through (C) of this section;
without regard to whether such articles have been advanced in
value or improved in condition by any process of manufacture or
other means while in space.".
(b) Headnote 5 of the general headnotes of the Tariff Schedules of
the United States (19 U.S.C. 1202) is amended—
(A) by striking out "media; and" in subdivision (e) and inserting in lieu thereof "media,";
(B) by adding after subdivision (e) the following new subdivision:
"(f) articles returned from space within the purview of section
484a of the Tariff Act of 1930; and"; and
(C) by redesignating subdivision (f) £is subdivision (g).
SEC. 210. DATE OF LIQUIDATION OR RELIQUIDATION.

(a) Section 505 of the Tariff Act of 1930 (19 U.S.C. 1505) is
amended by adding at the end thereof the following new subsection:
"(c) Duties determined to be due upon liquidation or reliquidation
shall be due 15 days after the date of that liquidation or reliquidation, and unless payment of the duties is received by the appropriate
customs officer within 30 days after that date, shall be considered
delinquent and bear interest from the 15th day after the date of
liquidation or reliquidation at a rate determined by the Secretary of
the Treasury.".
(b) Section 520 of the Tariff Act of 1930 (19 U.S.C. 1520) is
amended by adding at the end thereof the following new subsection:
"(d) If a determination is made to reliquidate an entry as a result
of a protest filed under section 514 of this Act or an application for
relief made under subsection (c)(1) of this section, or if reliquidation
is ordered by an appropriate court, interest shall be allowed on any
amount paid as increased or additional duties under section 505(c) of
this Act at the annual rate established pursuant to that section and
determined as of the 15th day after the date of liquidation or
reliquidation. The interest shall be calculated from the date of
payment to the date of (1) the refund, or (2) the filing of a summons
under section 2632 of title 28, United States Code, whichever occurs
first.".
SEC. 211. OPERATION OF CERTAIN DUTY-FREE SALES ENTERPRISES.

Section 555 of the Tariff Act of 1930 (19 U.S.C. 1555) is amended—
(1) by striking out "Buildings" in the first sentence thereof
and inserting in lieu thereof "(a) Subject to subsection Ot>),
buildings"; and
(2) by inserting at the end thereof the following:

19 use 1202.

Ante, p. 2976.

98 STAT. 2978

PUBLIC LAW 98-573—OCT. 30, 1984

"(b) If a State or local governmental authority, incident to its
jurisdiction over any airport, seaport, or other exit point facility,
requires that a concession or other form of approval be obtained
from that authority with respect to the operation of a duty-free sales
enterprise under which merchandise is delivered to such facility for
exportation, merchandise incident to such operation may not be
withdrawn from a bonded warehouse and transferred to such
facility unless the operator of the duty-free sales enterprise demonstrates to the Secretary of the Treasury that the concession or
approval required for the enterprise has been obtained. For purposes of this subsection, the term 'duty-free sales enterprise' means
an entity that sells, in less than wholesale quantities, duty-free or
tax-free merchandise that is delivered from a bonded warehouse to
an airport, seaport, or point of exit from the United States for
exportation by, or on behalf of, individuals departing from the
United States.".
SEC. 212. CUSTOMS BROKERS.

(a) Section 641 (19 U.S.C. 1641) is amended to read as follows:
"SEC. 641. CUSTOMS BROKERS.

"(a) DEFINITIONS.—As used in this section:
"(1) The term 'customs broker' means any person granted a
customs broker's license by the Secretary under subsection (b).
"(2) The term 'customs business' means those activities involving transactions with the Customs Service concerning the
entry and admissibility of merchandise, its classification and
valuation, the payment of duties, taxes, or other charges assessed or collected by the Customs Service upon merchandise by
reason of its importation, or the refund, rebate, or drawback
thereof.
"(8) The term 'Secretary' means the Secretary of the
Treasury.
"(b) CUSTOM BROKER'S LICENSES.—

"(1) IN GENERAL.—No person may conduct customs business
(other than solely on behalf of that person) unless that person
holds a valid customs broker's license issued by the Secretary
under paragraph (2) or (3).
"(2) LICENSES FOR INDIVIDUALS.—The Secretary may grant an
individual a customs broker's license only if that individual is a
citizen of the United States. Before granting the license, the
Secretary may require an applicant to show any facts deemed
necessary to establish that the applicant is of good moral character and qualified to render valuable service to others in the
conduct of customs business. In assessing the qualifications of
an applicant, the Secretary may conduct an examination to
determine the applicant's knowledge of customs and related
laws, regulations and procedures, bookkeeping, accounting, and
all other appropriate matters.
"(3)

LICENSES FOR CORPORATIONS, ETC.—The Secretary

may

grant a customs broker's license to any corporation, association,
or partnership that is organized or existing under the laws of
any of the several States of the United States if at least one
officer of the corporation or association, or one member of the
partnership, holds a valid customs broker's license granted
under paragraph (2).

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 2979

"(4) DUTIES.—A customs broker shall exercise responsible
supervision and control over the customs business that it
conducts.
"(5) LAPSE OF LiCENSE.^The failure of a customs broker that
is licensed as a corporation, association, or partnership under
paragraph (3) to have, for any continuous period of 120 days, at
least one officer of the corporation or association, or at least one
member of the partnership, validly licensed under paragraph (2)
shedl, in addition to causing the broker to be subject to any
other sanction under this section (including paragraph (6)),
result in the revocation by operation of law of its license.
"(6) PROHIBITED ACTS.—Any person who intentionally trans-

acts customs business, other than solely on the behalf of that
person, without holding a valid customs broker's license granted
to that person under this subsection shall be liable to the
United States for a monetary penalty not to exceed $10,000 for
each such transaction as well as for each violation of any other
provision of this section. This penalty shall be assessed in the
same manner and under the same procedures as the monetary
penalties provided for in subsection (d)(2XA).
'(c) CUSTOMS BROKER'S PERMITS.—

"(1) IN GENERAL.—Each person granted a customs broker's
license under subsection (b) shall—
"(A) be issued a permit, in accordance with regulations
prescribed under this section, for each customs district in
which that person conducts customs business; and
"(B) except as provided in paragraph (2), regularly
employ in each customs district for which a permit is so
issued at least one individual who is licensed under subsection (bX2) to exercise responsible supervision and control
over the customs business conducted by that person in that
district.
"(2) EXCEPTION.—If a person granted a customs broker's
license under subsection (b) can demonstrate to the satisfaction
of the Secretary that—
"(A) he regularly employs in the region in which that
district is located at least one individual who is licensed
under subsection (bX2), and
"(B) that sufficient procedures exist within the company
for the person employed in that region to exercise responsible supervision and control over the customs business conducted by that person in that district,
the Secretary may waive the requirement in paragraph (IXB).
"(3) LAPSE OF PERMIT.—The failure of a customs broker

granted a permit under paragraph (1) to employ, for any continuous period of 180 days, at least one individual who is licensed
under subsection (bX2) within the district or region (if paragraph (2) applies) for which a permit was issued shall, in
addition to causing the broker to be subject to any other sanction under this section (including any in subsection (d)), result
in the revocation by operation of law of the permit.
*(d) DisciPUNARY PROCEEDINGS.—
"(1) GENERAL RULE.—The Secretary may impose a monetary

penalty in all cases with the exception of the infractions
described in clause (iii) of subparagraph (B) of this subsection, or
revoke or suspend a license or permit of any customs broker, if
it is shown that the broker—

98 STAT. 2980

PUBLIC LAW 98-573—OCT. 30, 1984
"(A) has made or caused to be made in any application for
any license or permit under this section, or report filed with
the Customs Service, any statement which was, at the time
and in light of the circumstances under which it was made,
false or misleading with respect to any material fact, or has
omitted to state in any such application or report any
material fact which was required to be stated therein;
"(B) has been convicted at any time after the filing of an
application for license under subsection (b) of any felony or
misdemeanor which the Secretary finds—
"(i) involved the importation or exportation of
merchandise;
"(ii) arose out of the conduct of its customs business;
or
"(iii) involved larceny, theft, robbery, extortion, forgery, counterfeiting, fraudulent concealment, embezzlement, fraudulent conversion, or misappropriation of
funds;
"(C) has violated any provision of any law enforced by the
Customs Service or the rules or regulations issued under
any such provision;
"(D) has counseled, commanded, induced, procured, or
knowingly aided or abetted the violations by any other
person of any provision of any law enforced by the Customs
Service, or the rules or regulations issued under any such
provision;
"(E) has knowingly employed, or continues to employ,
any person who has been convicted of a felony, without
written approval of such employment from the Secretary;
or
"(F) has, in the course of its customs business, with intent
to defraud, in any manner willfully and knowingly
deceived, misled or threatened any client or prospective
client.
"(2) PROCEDURES.—
"(A) MONETARY PENALTY.—Unless action has been teiken

19 use 1618.

under subparagraph (B), the appropriate customs officer
shall serve notice in writing upon any customs broker to
show cause why the broker should not be subject to a
monetary penalty not to exceed $30,000 in total for a
violation or violations of this section. The notice shall
advise the customs broker of the allegations or complaints
against him and shall explain that the broker has a right to
respond to the allegations or complaints in writing within
30 days of the date of the notice. Before imposing a monetary penalty, the customs officer shall consider the allegations or complaints and any timely response made by the
customs broker and issue a written decision. A customs
broker against whom a monetary penalty has been issued
under this section shall have a reasonable opportunity
under section 618 to make representations seeking remission or mitigation of the monetary penalty. Following the
conclusion of any proceeding under section 618, the appropriate customs officer shall provide to the customs broker a
written statement which sets forth the final determination
and the findings of fact and conclusions of law on which
such determination is based.

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 2981

"(B) REVOCATION OR SUSPENSION.—The appropriate customs officer may, for good and sufficient reason, serve
notice in writing upon any customs broker to show cause
why a license or permit issued under this section should not
be revoked or suspended. The notice shall be in the form of
a statement specifically setting forth the grounds of the
complaint, and shall allow the customs broker 30 days to
respond. If no response is filed, or the appropriate customs
officer determines that the revocation or suspension is still
warranted, he shall notify the customs broker in writing of
a hearing to be held within 15 days, or at a later date if the
broker requests an extension and shows good cause therefor, before an administrative law judge appointed pursuant
to section 3105 of title 5, United States Code, who shall
serve as the hearing officer. If the customs broker waives
the hearing, or the broker or his designated representative
fails to appear at the appointed time and place, the hearing
officer shall make findings and recommendations based on
the record submitted by the parties. At the hearing, the
customs broker may be represented by counsel, and all
proceedings, including the proof of the charges and the
response thereto shall be presented with testimony taken
under oath and the right of cross-examination accorded to
both parties. A transcript of the hearing shall be made and
a copy will be provided to the appropriate customs officer
and the customs broker; they shall thereafter be provided
reasonable opportunity to file a post-hearing brief. Following the conclusion of the hearing, the hearing officer shall
transmit promptly the record of the hearing along with his
findings of fact and recommendations to the Secretary for
decision. The Secretary will issue a written decision, based
solely on the record, setting forth his findings of fact and
the reasons for his decision. Such decision may provide for
the sanction contained in the notice to show cause or any
lesser sanction authorized by this subsection, including a
monetary penalty not to exceed $30,000, than was contained
in the notice to show cause.
"(3) SETTLEMENT AND COMPROMISE.—The Secretary may settle

and compromise any disciplinary proceeding which has been
instituted under this subsection according to the terms and
conditions agreed to by the parties, including but not limited to
the reduction of any proposed suspension or revocation to a
monetary penalty.
"(4) LIMITATION OF ACTIONS.—Notwithstanding section 621, no

proceeding under this subsection or subsection (bX6) shall be
commenced unless such proceeding is instituted by the appropriate service of written notice within 5 years from the date the
alleged violation was committed; except that if the alleged
violation consists of fraud, the 5-year period of limitation shall
commence running from the time such alleged violation was
discovered.
*(e) JUDICIAL APPEAL.—

"(1) I N GENERAL.—A customs broker, applicant, or other
person directly affected may appeal any decision of the Secretary denying or revoking a license or permit under subsection
(b) or (c), or revoking or suspending a license or permit or
imposing a monetary penalty in lieu thereof under subsection

31-194 0 - 86 - 20 : QL.3 P a r t 3

19 use 1621.

98 STAT. 2982

PUBLIC LAW 98-573—OCT. 30, 1984

(dK2XB), by filing in the Court of International Trade, within 60
days after the issuance of the decision or order, a written
petition requesting that the decision or order be modified or set
aside in whole or in part. A copy of the petition shall be
transmitted promptly by the clerk of the court to the Secretary
or his designee. In cases involving revocation or suspension of a
license or permit or imposition of a monetary penalty in lieu
thereof under subsection (dX2XB), after receipt of the petition,
the Secretary shall file in court the record upon which the
decision or order complained of was entered, as provided in
section 2635(d) of title 28, United States Code.
"(2) CONSIDERATION OF OBJECTIONS.—The court shall not consider any objection to the decision or order of the Secretary, or
to the introduction of evidence or testimony, unless that objection was raised before the hearing officer in suspension or
revocation proceedings unless there were reasonable grounds
for failure to do so.
"(3) CONCLUSIVENESS OF FINDINGS.—The findings of the Secretary as to the facts, if supported by substantial evidence, shall
be conclusive.
"(4) ADDITIONAL EVIDENCE.—If any party applies to the court
for leave to present additional evidence and the court is satisfied that the additional evidence is material and that reasonable
grounds existed for the failure to present the evidence in the
proceedings before the hearing officer, the court may order the
additional evidence to be taken before the hearing officer and to
be presented in a manner and upon the terms and conditions
prescribed by the court. The Secretary may modify the findings
of facts on the basis of the additional evidence presented. The
Secretary shall then file with the court any new or modified
findings of fact which shall be conclusive if supported by substantial evidence, together with a recommendation, if any, for
the modification or setting aside of the original decision or
order.
"(5) EFFECT OF PROCEEDINGS.—The commencement of proceedings under this subsection shall, unless specifically ordered by
the court, operate as a stay of the decision of the Secretary
except in the case of a denial of a license or permit.
"(6) FAILURE TO APPEAL.—If an appeal is not filed within the
time limits specified in this section, the decision by the Secretary shall be final and conclusive. In the case of a monetary
penalty imposed under subsection (dX2XB) of this section, if the
amount is not tendered within 60 days after the decision becomes final, the license shall automatically be suspended until
payment is made to the Customs Service.
"(f) REGULATIONS BY THE SECRETARY.—The Secretary may prescribe such rules and regulations relating to the customs business of
customs brokers as the Secretary considers necessary to protect
importers and the revenue of the United States, and to carry out the
provisions of this section, including rules and regulations governing
the licensing of or issuance of permits to customs brokers, the
keeping of books, accounts, and records by customs brokers, and
documents and correspondence, and the furnishing by customs brokers of any other information relating to their customs business to
any duly accredited officer or employee of the United States Customs Service.
"(g) TRIENNIAL REPORTS BY CUSTOMS BROKERS.—

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 2983

"(1) IN GENERAL.—On February 1, 1985, and on February 1 of
each third year thereafter, each person who is licensed under
subsection (b) shall file with the Secretary of the Treasury a
report as to—
"(A) whether such person is actively engaged in business
as a customs broker; and
"(B) the name under, and the address at, which such
business is being transacted.
"(2) SUSPENSION AND REVOCATION.—If a person licensed under
subsection G)) fails to file the required report by March 1 of the
reporting year, the license is suspended, and may be thereafter
revoked subject to the following procedures:
"(A) The Secretary shall transmit written notice of suspension to the licensee no later than March 31 of the
reporting year.
"(B) If the licensee files the required report within 60
days of receipt of the Secretary's notice, the license shall be
reinstated.
"(C) In the event the required report is not filed within
the 60-day period, the license shall be revoked without
prejudice to the filing of an application for a new license.
"(h) FEES AND CHARGES.—The Secretary may prescribe reasonable

fees and charges to defray the costs of the Customs Service in
carrying out the provisions of this section, including, but not limited
to, a fee for licenses issued under subsection (b) and fees for any test
administered by him or under his direction; except that no separate
fees shall be imposed to defray the costs of an individual audit or of
individual disciplinary proceedings of any nature.".
(b) Title 28, United States Code, is amended as follows:
(1) Section 1581(g) is amended to read as follows:
"(g) The Court of International Trade shall have exclusive jurisdiction of any civil action commenced to review—
"(1) any decision of the Secretary of the Treasury to deny a
customs broker's license under section 641(b) (2) or (3) or (c) of
the Tariff Act of 1930, or to deny a customs broker's permit
under section 641(c)(1) of such Act, or to revoke a license or
permit under section 641(b)(5) or (c)(2) of such Act; and
"(2) any decision of the Secretary of the Treasury to revoke or
suspend a customs broker's license or permit, or impose a
monetary penalty in lieu thereof, under section 641(d)(2)(B) of
the Tariff Act of 1930.".
(2) Section 1582(1) is amended to read as follows:
"(1) to recover a civil penalty under section 592, 641(a)(1)(C),
641(d)(2)(A), 704(i)(2), or 734(i)(2) of the Tariff Act of 1930;".
(3) Section 2631(g) is amended to read as follows:
"(g)(1) A civil action to review any decision of the Secretary of the
Treasury to deny a customs broker's license under section 641(b) (2)
or (3) of the Tariff Act of 1930, or to deny a customs broker's permit
under section 641(c)(1) of such Act, or to revoke such license or
permit under section 641(b)(5) or (c)(2) of such Act, may be commenced in the Court of International Trade by the person whose
license or permit was denied or revoked.
"(2) A civil action to review any decision of the Secretary of the
Treasury to revoke or suspend a customs broker's license or permit
or impose a monetary penalty in lieu thereof under section
641(d)(2)(B) of the Tariff Act of 1930 may be commenced in the Court

Ante, p. 2978.

19 USC 1592,
1641^ 1671,
1673c.

98 STAT. 2984

28 use 2636.
Ante, p. 2978.

19 use 1564.

19 u s e 1520.

PUBLIC LAW 98-573—OCT. 30, 1984

of International Trade by the person against whom the decision was
issued.".
(4) Section 2636(h) is amended to read as follows:
"(h) A civil action contesting the denial or revocation by the
Secretary of the Treasury of a customs broker's license or permit
Under subsection (b) or (c) of section 641 of the Tariff Act of 1930, or
the revocation or suspension of such license or permit or the imposition of a monetary penalty in lieu thereof by such Secretary under
section 641(d) of such Act, is barred unless commenced in accordance
with the rules of the Court of International Trade within sixty days
after the date of the entry of the decision or order of such
Secretary.".
(5) Section 2640(aX5) is amended to read as follows:
"(5) Civil actions commenced to review any decision of the Secretary of the Treasury under section 641 of the Tariff Act of 1930, with
the exception of decisions under section 641(d)(2)(B), which shall be
governed by subdivision (d) of this section.".
(6) Section 2643 is amended by adding the following new
subsection:
"(e) In any proceeding involving assessment or collection of a
monetary penalty under section 641(b)(6) or 641(dX2)(A) of the Tariff
Act of 1930, the court may not render judgment in an amount
greater than that sought in the initial pleading of the United States,
and may render judgment in such lesser amount as shall seem
proper and just to the court.".
(7) The Tariff Act of 1930 is further amended—
(A) by adding the following sentence at the end of section
564: "The provisions of this section shall apply to licensed
customs brokers who otherwise possess a lien for the purposes stated above upon the merchandise under the statutes
or common law, or by order of any court of competent
jurisdiction, of any State."; and
(B) by adding the following at the end of section 520(a):
"(4) PRIOR TO UQUIDATION.—Prior to the liquidation of an

entry, whenever it is ascertained that excess duties, fees,
charges, or exactions have been deposited or paid by reason of
clerical error.".
SEC. 213. SEIZURES AND FORFEITURES.

(a) The Tariff Act of 1930 is amended as follows:
(1) Section 602 (19 U.S.C. 1602) is amended by inserting
"aircraft," after "vehicle,".
(2) The sentence beginning "All vessels," in section 605 (19
U.S.C. 1605) is amended by inserting "aircraft," after "vehicles," the first place is appears.
(3) Section 606 (19 U.S.C. 1606) is amended by inserting
"aircraft" after "vehicle ".
(4) Section 607 (19 U.S.C. 1607) is amended to read as follows:
"SEC. 607. SEIZURE; VALUE $100,000 OR LESS, PROHIBITED MERCHANDISE,
TRANSPORTING CONVEYANCES.

"(a)If"(1) the value of such seized vessel, vehicle, aircraft, merchandise, or baggage does not exceed $100,000;
"(2) such seized merchandise is merchandise the importation
of which is prohibited; or

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 2985

"(3) such seized vessel, vehicle, or aircraft was used to import,
export, transport, or store any controlled substance;
the appropriate customs officer shall cause a notice of the seizure of
such articles and the intention to forfeit and sell or otherwise
dispose of the same according to law to be published for at least
three successive weeks in such manner as the Secretary of the
Treasury may direct. Written notice of seizure together with information on the applicable procedures shall be sent to each party who
appears to have an interest in the seized article.
(b) As used in this section, the term 'controlled substance' has
the meaning given that term in section 102 of the Controlled
Substances Act (21 U.S.C. 802).".
(5) Section 608 (19 U.S.C. 1608) is amended—
(A) in the sentence beginning "Any person", by inserting
"aircraft," after "vehicle,"; and
(B) in the sentence beginning "Upon the filing", by inserting after "penal sum o f the following: "$2,500 or 10 percent of the value of the claimed property, whichever is
lower, but not less than".
(6) Section 609 (19 U.S.C. 1609) is amended—
(A) by striking out "If no" and inserting in lieu thereof
"(a) If no";
(B) by inserting "aircraft," after "vehicle,";
(C) by inserting after "according to law, and" the following: "(except as provided in subsection (b) of this section)";
and
(D) by adding at the end the following new subsection:
"(b) During the period beginning on the date of the enactment of
this subsection and ending on September 30, 1987, the appropriate
customs officer shall deposit the proceeds of sale (after deducting
such expenses) in the Customs Forfeiture Fund.".
(7) Section 610 (19 U.S.C. 1610) is amended—
(A) by striking out "VALUE MORE THAN $10,000" in
the section heading and inserting in lieu thereof "JUDICIAL FORFEITURE PROCEEDINGS"; and
(B) by striking out "If the value of any vessel, vehicle,
merchandise, or baggage so seized is greater than $10,000,"
and inserting in lieu thereof "If any vessel, vehicle, aircraft,
merchguidise, or baggage is not subject to section 607 of this
Act".
(8) Section 611 (19 U.S.C. 1611) is amended by inserting
"aircraft," after "vehicle," each place it appears.
(9) Section 612 (19 U.S.C. 1612) is amended—
(A) by inserting "aircraft," after "vehicle," each place it
appears;
(B) in the sentence beginning "Whenever it appears"—
(i) by striking out "Whenever" and inserting in lieu
thereof "(a) Whenever";
(ii) by striking out "the value of; and
(iii) by striking out "as determined under section 606
of this Act, does not exceed $10,000" and inserting in
lieu thereof "is subject to section 607 of this Act";
(C) in the sentence beginning "If such value"—
(i) by striking out "such value of; and
(ii) by striking out "exceeds $10,000" and inserting in
lieu thereof "is not subject to section 607 of this Act,";
and

98 STAT. 2986

Infra.

19 u s e 1613b.

19 use 1524.
19 use 1613.

19 use 1619.

Ante, p. 2985.

31 use 5301
et seq.

PUBLIC LAW 98-573—OCT. 30, 1984

(D) by adding at the end the following new subsection:
"(b) If the expense of keeping the vessel, vehicle, aircraft, merchandise, or baggage is disproportionate to the value thereof, and
such value is less than $1,000, such officer may proceed forthwith to
order destruction or other appropriate disposition of such propertv,
under regulations prescribed by the Secretary of the Treasury. .
(10) Section 613 (19 U.S.C. 1613) is amended—
(A) by inserting "aircraft," after "vehicle," in the sentence beginning "Except as" in subsection (a);
(B) by striking out "with the Treasurer of the United
States as a customs or navigation fine" and inserting in lieu
thereof "in the general fund of the Treasury of the United
States" in paragraph (3) of the sentence beginning "If no"
in subsection (a); and
(C) by amending subsection (b) by inserting after "and (2)
of this section" the following: "or subsection (a)(1), (a)(3), or
(a)(4) of section 613A of this Act".
(11) Part V of title IV (19 U.S.C. 1581 et seq.) is amended by
adding after section 613 the following new section:
"SEC. 613A. CUSTOMS FORFEITURE FUND.

"(a) There is established in the Treasury of the United States a
fund to be known as the Customs Forfeiture Fund (hereinafter in
this section referred to as the 'fund'), which shall be available to the
United States Customs Service, subject to appropriation, during the
period beginning on the date of the enactment of this section and
ending on September 30, 1987. The fund shall be available with
respect to seizures and forfeitures by the United States Customs
Service under any law enforced or administered by it for payment
(to the extent that such payment is not reimbursed under section
524 of this Act)—
"(1) of all proper expenses of the seizure or the proceedings of
forfeiture and sale (not otherwise recovered under section
613(a)), including, but not limited to, expenses of inventory,
security, maintaining the custody of the property, advertising
and sale, and if condemned by the court and a bond for such
costs was not given, the costs as taxed by the court;
"(2) of awards of compensation to informers under section 619
of this Act;
"(3) for satisfaction of—
"(A) liens for freight, charges, and contributions in general average, notice of which has been filed with the appropriate customs officer according to law; and
"(B) other liens against forfeited property;
"(4) of amounts authorized by law with respect to remission
and mitigation;
"(5) for equipping for law enforcement functions of forfeited
vessels, vehicles, and aircraft retained as provided by law for
official use by the United States Customs Service; and
"(6) of claims of parties in interest to property disposed of
under section 612(b) of this Act, in the amounts applicable to
such claims at the time of seizure.
In addition to the purposes described in paragraphs (1) through (6),
the fund shall be available for purchases by the United States
Customs Service of evidence of (A) smuggling of controlled substances, and (B) violations of the currency and foreign transaction
reporting requirements of chapter 53 of title 31, United States Code,

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 2987

if there is a substantial probability that the violations of these
requirements are related to the smuggling of controlled substances.
"(bXD Payment under paragraphs (3) and (4) of subsection (a) of
this section shall not exceed the value of the property at the time of
the seizure.
"(2) Amounts under subsection (a) of this section shall be available, at the discretion of the Commissioner of Customs, to reimburse
the applicable appropriation for expenses incurred by the Coast
Guard for a purpose specified in such subsection.
"(c) There shall be deposited in the fund during the period beginning on the date of the enactment of this section, and ending on
September 30, 1987, all proceeds from forfeiture under any law
enforced or administered by the United States Customs Service
(after reimbursement of expenses under section 524 of this Act) and
all earnings on amounts invested under subsection (d) of this section.
"(d) Amounts in the fund which are not currently needed for the
purposes of this section shall be invested in obligations of, or guaranteed by, the United States.
"(e) Not later than four months after the end of each fiscal year,
the (llommissioner of Customs shall transmit to the (ingress a
report on receipts and disbursements with respect to the fund for
such year.
"(fKl) There are authorized to be appropriated from the fund for
each of the four fiscal years beginning with fiscal year 1984, not
more than $10,000,000.
"(2) At the end of each of the first three of such four fiscal years,
any amount in the fund in excess of $10,000,000 shall be deposited in
the general fund of the Treasury. At the end of the last of such four
fiscal years, any amount in the fund shall be deposited in the
generad fund of the Treasury, and the fund shall cease to exist.".
(12) Section 614 (19 U.S.C. 1614) is amended by inserting
"aircraft," after "vehicle," each place it appears.
(13) Section 615 (19 U.S.C. 1615) is amended—
(A) in the matter before the proviso, by inserting "aircraft," after "vehicle," each place it appears; and
(B) in paragraph (1) of the proviso, by striking out "vessel
or vehicle" and inserting in lieu thereof "vessel, vehicle, or

19 USC 1524.
Securities.
Report.

Appropriation
authorization.

(14) Part V of title IV (19 U.S.C. 1581 et seq.), as amended by
paragraph (11), is further amended by adding after section 615
the following new section:
"SEC. 616. TRANSFER OF FORFEITED PROPERTY.

"(a) The Secretary of the Treasury may discontinue forfeiture
proceedings under this Act in favor of forfeiture under State law. If
a complaint for forfeiture is filed under this Act, the Attorney
General may seek dismissal of the complaint in favor of forfeiture
under State law.
"(b) If forfeiture proceedings are discontinued or dismissed under
this section—
"(1) the United States may transfer the seized property to the
appropriate State or local official; and
"(2) notice of the discontinuance or dismissal shall be provided to all known interested parties.
"(c) The Secretary of the Treasury may transfer any property
forfeited under this Act to any State or local law enforcement

19 USC 1616a.

98 STAT. 2988

PUBLIC LAW 98-573—OCT. 30, 1984

agency which participated directly in the seizure or forfeiture of the
property.
"(d) The United States shall not be liable in any action relating to
property transferred under this section if such action is beised on an
act or omission occurring after the transfer.".
(15) Section 619 (19 U.S.C. 1619) is amended—
(A) by inserting "aircraft," after "vehicle," each place it
appears, and
(B) by striking out "$50,000" each place it appears and
inserting in lieu thereof "$250,000".
(16) The sentence beginning "Whenever any" in section 618
(19 U.S.C. 1618) is amended by inserting "aircraft," after "vehicle," each place it appears.
(17) Part V of title IV (19 U.S.C. 1581 et seq.), as amended by
paragraphs (11) and (13), is further amended by adding after
section 588 the following new section:
19 u s e 1589a.

26 use 7607.

19 u s e 1304

"SEC. 589. ENFORCEMENT AUTHORITY OF CUSTOMS OFFICERS.

"Subject to the direction of the Secretary of the Tresisury, an
officer of the customs may—
"(1) carry a firearm;
"(2) execute and serve any order, warrant, subpena, summons,
or other process issued under the authority of the United States;
"(3) make an arrest without a warrant for any offense against
the United States committed in the officer's presence or for a
felony, cognizable under the laws of the United States committed outside the officer's presence if the officer has reasonable
grounds to believe that the person to be arrested has committed
or is committing a felony; and
"(4) perform any other law enforcement duty that the Secretary of the Treasury may designate.".
(b)(1) Section 7607 of the Internal Revenue Code of 1954 is
repealed.
(2) The table of sections for subchapter A of chapter 78 of the
Internal Revenue Code of 1954 is amended by striking out the item
relating to section 7607.
SEC. 214. EFFECTIVE DATES.

(a) For purposes of this section, the term "15th day" means the
15th day after the date of the enactment of this Act.
(b) Except as provided in subsections (c), (d), and (e), the amendments made by this title shall take effect on the 15th day.
(c)(1) The amendment made by section 204 shall apply with respect to vessels returning from the British Virgin Islands on or after
the 15th day.
(2) The amendments made by section 207 shall apply with respect
to articles entered, or withdrawn from warehouse for consumption,
on or after the 15th day; except for such of those articles that, on or
before the 15th day, had been taken on board for transit to the
customs territory of the United States.
(3)(A) The amendment made by section 208 shall apply with
respect to entries made in connection with arrivals of vessels on or
after the 15th day.
(B) Upon request therefor filed with the customs officer concerned
on or before the 90th day after the date of the enactment of this Act,
any entry in connection with the arrival of a vessel used primarily
for transporting passengers or property—

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 2989

(i) made before the 15th day but not liquidated as of January 1, 1983, or
(ii) made before the 15th day but which is the subject of an
action in a court of competent jurisdiction on September 19,
1983, and
(iii) with respect to which there would have been no duty if
the amendment made by section 208 applied to such entry,
shall, notwithstanding the provisions of section 514 of the Tariff Act
of 1930 (19 U.S.C. 1514) or any other provision of law, be liquidated
or reliquidated as though such entry had been made on the 15th
day.
(4) The amendments made by section 209 shall apply with respect
to articles launched into space from the customs territory of the
United States on or after January 1,1985.
(5XA) The amendment made by section 210(a) shall take effect on
the 30th day after the date of the enactment of this Act.
(B) The amendment made by section 210(b) shall apply with
respect to determinations made or ordered on or after the date of
the enactment of this Act.
(dXD The amendments made by section 212 shall take effect upon
the close of the 180th day following the date of the enactment of this
Act with the following exceptions:
(A) Section 641(cXlXB) and section 641(cX2) of the Tariff Act of
1930, as added by such section, shall take effect three years
after the date of the enactment of this Act.
(B) The amendments made to the Tariff Act of 1930 by
subsection (c) of section 212 shall take effect on such date of
enactment.
(2) A license in effect on the date of enactment of this Act under
section 641 of the Tariff Act of 1930 (as in effect before such date of
enactment) shall continue in force as a license to transact customs
business as a customs broker, subject to all the provisions of section
212 and such licenses shall be accepted as permits for the district or
districts covered by that license.
(3) Any proceeding for revocation or suspension of a license instituted under section 641 of the Tariff Act of 1930 before the date of
the enactment of this Act shall continue and be governed by the law
in effect at the time the proceeding was instituted.
(4) If any provision of section 212 or its application to any person
or circumstances is held invalid, it shall not affect the validity of the
remaining provisions or their application to any other person or
circumstances.
(e) The amendments made by section 213 shall take effect
October 15, 1984.

Subtitle B—Small Business Trade Assistance
SEC. 221. ESTABLISHMENT OF TRADE REMEDY ASSISTANCE OFFICE IN
THE UNITED STATES INTERNATIONAL TRADE COMMISSION.

Part 2 of title II of the Tariff Act of 1930 (19 U.S.C. 1330-1341) is
amended by inserting after section 338 the following new section:
"SEC. 339. TRADE REMEDY ASSISTANCE OFFICE.

"(a) There is established in the Commission a Trade Remedy
Assistance Office which shall provide full information to the public,
upon request, concerning—
"(1) remedies and benefits available under the trade laws, and

19 USC 1339.

98 STAT. 2990

PUBLIC LAW 98-573—OCT. 30, 1984

"(2) the petition and application procedures, and the appropriate fiUng dates, with respect to such remedies and benefits.
"(b) Each agency responsible for administering a trade law shall
provide technical assistance to eligible small businesses to enable
them to prepare and file petitions and applications (other than those
which, in the opinion of the agency, are frivolous) to obtain the
remedies and benefits that may be available under that law.
"(c) For purposes of this section—
"(1) The term 'eligible small business' means any business
concern which, in the agency's judgment, due to its small size,
has neither adequate internal resources nor financial ability to
obtain qualified outside assistance in preparing and filing petitions and applications for remedies and benefits under trade
laws. In determining whether a business concern is an 'eligible
small business', the agency may consult with the Small Business Administration, and shall consult with any other agency
that has provided assistance under subsection (b) to that business concern. An agency decision regarding whether a business
concern is an eligible small business for purposes of this section
is not reviewable by any other agency or by any court.
"(2) The term 'trade laws' means—
"(A) chapter 1 of title II of the Trade Act of 1974 (19
U.S.C. 2251 et seq., relating to relief caused by import
competition);
"(B) chapters 2 and 3 of such title II (relating to adjust19 u s e 2271 et
seq., 2341 et seq.
ment assistance for workers and firms);
"(C) chapter 1 of title III of the Trade Act of 1974 (19
U.S.C. 2411 et seq., relating to relief from foreign import
restrictions and export subsidies);
"(D) title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et
seq., relating to the imposition of countervailing duties and
antidumping duties);
"(E) section 232 of the Trade Expansion Act of 1962 (19
U.S.C. 1862, relating to the safeguarding of national security); and
"(F) section 337 of the Tariff Act of 1930 (19 U.S.C. 1337,
relating to unfair practices in import trade)."
(b) Section 339 of the Tariff Act of 1930 (as added by subsection (a))
Effective date.
19 u s e 1339
shall take effect on the 90th day after the date of the enactment of
note.
this Act.
Subtitle C—Miscellaneous Provisions
SEC. 231. FOREIGN TRADE ZONE PROVISIONS.

Bicycle
components.

(aXD The Congress finds that a delicate balance of the interests of
the bicycle industry and the bicycle component parts industry has
been reached through repeated revision of the Tariff Schedules of
the United States so as to allow duty free import of those categories
of bicycle component parts which are not manufactured domestically. The Congress further finds that this balance would be destroyed by exempting otherwise dutiable bicycle component parts
from the customs laws of the United States through granting foreign
trade zone status to bicycle manufacturing and assembly plants in
the United States and that the preservation of such balance is in the
public interest and in the interest of the domestic bicycle industry.
(2) Section 3 of the Act of June 18, 1934 (commonly known as the
Foreign Trade Zones Act (19 U.S.C. 81c)), is amended—

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 2991

(A) by inserting "(a)" immediately before the first word
thereof;
(B) by redesignating paragraphs (a) and (b) as paragraphs (1)
and (2), respectively; and
(C) by adding at the end thereof the following new subsection:
"(b) The exemption from the customs laws of the United States
provided under subsection (a) shall not be available before June 30,
1986, to bicycle component parts unless such parts are reexported
from the United States, whether in the original package, as components of a completely assembled bicycle, or otherwise.".
(3) The amendments made by paragraph (2) shall take effect on
the fifteenth day after the date of the enactment of this Act.
mi) Section 15 of such Act of June 18, 1934 (19 U.S.C. 81o) is
amended by adding at the end thereof the following new subsection:
"(e) Tangible personal property imported from outside the United
States and held in a zone for the purpose of storage, sale, exhibition,
repackaging, assembly, distribution, sorting, grading, cleaning,
mixing, display, manufacturing, or processing, and tangible personal
property produced in the United States and held in a zone for
exportation, either in its original form or as altered by any of the
above processes, shall be exempt from State and local ad valorem
taxation.".
(2) The amendment made by paragraph (1) shall take effect on
January 1,1983.

Effective date.
19 u s e 81c note.

Effective date.
19 u s e 81o note.

SEC. 232. DENIAL OF DEDUCTION FOR CERTAIN FOREIGN ADVERTISING
EXPENSES.

(a) Section 162 of the Internal Revenue Code of 1954 (relating to
trade or business expenses) is amended by redesignating subsection
(j) as subsection (k) and by inserting after subsection (i) the following
new subsection:

26 u s e 162.

"0") CERTAIN FOREIGN ADVERTISING EXPENSES.—

"(1) I N GENERAL.—No deduction shall be allowed under subsection (a) for any expenses of an advertisement carried by a
foreign broadcast undertaking and directed primarily to a
market in the United States. This paragraph shall apply only to
foreign broadcast undertakings located in a country which
denies a similar deduction for the cost of advertising directed
primarily to a market in the foreign country when placed with a
United States broadcast undertaking.
"(2) BROADCAST UNDERTAKING.—For purposes of paragraph
(1), the term 'broadcast undertaking' includes (but is not limited
to) radio and television stations.".
(b) The amendment made by subsection (a) shall apply to taxable
years beginning after the date of the enactment of this Act.

Effective date.
26 u s e 162 note.

SEC. 233. CERTAIN RELICS AND CURIOS.

Section 925 of title 18, United States Code, is amended by inserting at the end thereof the following:
"(e) Notwithstanding any other provision of this title, the Secretary shall authorize the importation of, by any licensed importer,
the following:
"(1) All rifles and shotguns listed as curios or relics by the
Secretary pursuant to section 921(aX13), and
"(2) All handguns, listed as curios or relics by the Secretary
pursuant to section 921(a)(13), provided that such handguns are

Firearms.

18 u s e 921.

98 STAT. 2992

PUBLIC LAW 98-573—OCT. 30, 1984

generally recognized as particularly suitable for or readily
adaptable to sporting purposes.".
SEC. 234. MODIFICATION OF DUTIES ON CERTAIN ARTICLES USED IN
CIVIL AVIATION.
(a) The President may proclaim modifications in the rate of duty
column numbered 1 and in the article descriptions, including the
superior headings thereto, for the articles provided for in the following items in the Tariff Schedules of the United States (19 U.S.C.
1202) in order to provide duty-free coverage comparable to the
expanded coverage provided by all other signatories to the Agreement on Trade in Civil Aircraft pursuant to the extension of the
Annex to the Agreement on Trade in Civil Aircraft on October 6,
1983, and recorded in the decision of the Committee on March 22,
1984, if such articles are certified for use in civil aircraft in accordance with headnote 3 to schedule 6, part 6, subpart C of such
Schedules:

19 use 2135.
19 use 2101.

19 use 1311.

19 use 58b.

646.95
660.85
660.97
661.06
661.10
661.15
661.20
661.35
680.59

680.95
681.01
681.15
681.18
681.21
681.24
682.05
683.05
683.07

708.05
708.07
708.09
708.21
708.23
708.25
708.27
708.29
711.77

680.61
680.62
680.92

683.15
708.01
708.03

711.78
711.98
711.49.

(h) For purposes of section 125 of the Trade Act of 1974, the
duty-free treatment, if any, proclaimed under subsection (a) shall
be considered to be trade agreement obligations entered into
under the Trade Act of 1974 of benefit to foreign countries or
instrumentalities.
SEC. 235. PRODUCTS OF CARIBBEAN BASIN COUNTRIES ENTERED IN
PUERTO RICO.
Subsection (a) of section 213 of the Caribbean Basin Economic
Recovery Act (19 U.S.C. 2703) is amended by adding at the end
thereof the following new paragraph:
"(3) Notwithstanding section 311 of the Tariff Act of 1930, the
products of a beneficiary country which are imported directly
from such country into Puerto Rico may be entered under bond
for processing or use in manufacturing in Puerto Rico. No duty
shall be imposed on the withdrawal from warehouse of the
product of such processing or manufacturing if, at the time of
such withdrawal, such product meets the requirements of paragraph (1)(B).".
SEC. 236. USER FEE FOR CUSTOMS SERVICES AT CERTAIN SMALL AIRPORTS.
(a) The Secretary of the Treasury shall make customs services
available and charge a fee for the use of such customs services at—
(1) the airport located at Lebanon, New Hampshire, and
(2) any other airport designated by the Secretary of the
Treasury under subsection (c).

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 2993

(b) The fee which is charged under subsection (a) shall be paid by
each person using the customs services at the airport and shall be in
an amount equal to the expenses incurred by the Secretary of the
Treasury in providing the customs services which are rendered to
such person at such airport (including the salary and expenses of
individuals employed by the Secretary of the Treasury to provide
such customs services).
(c) The Secretary of the Treasury may designate 4 airports under
this subsection. An airport may be designated under this subsection
only if—
(1) the Secretary of the Treasury has made a determination
that the volume or value of business cleared through such
airport is insufficient to justify the availability of customs
services at such airport, and
(2) the governor of the State in which such airport is located
approves such designation.
(d) Any person who, after notice and demand for payment of any
fee charged under subsection (a), fails to pay such fee shall be guilty
of a misdemeanor and if convicted thereof shall pay a fine that does
not exceed an amount equal to 200 percent of such fee.
(e) Fees collected by the Secretary of the Treasury under subsection (a) with respect to the provision of services at an airport shall
be deposited in an account within the Treasury of the United States
that IS specially designated for such airport. The funds in such
account shall only be available, as provided by appropriation Acts,
for expenditures relating to the provision of customs services at such
airport (including expenditures for the salaries and expenses of
individuals employed to provide such services).
SEC. 237. NOTIFICATION OF CERTAIN ACTIONS BY THE UNITED STATES
CUSTOMS SERVICE.

(a) The Commissioner of Customs shall notify the Committee on
Finance of the Senate and the Committee on Ways and Means of the
House of Representatives at least 90 days prior to initiating any
major field reorganization or consolidation or taking any other
action which would—
(1) result in a significant reduction in force of employees other
than by means of attrition;
(2) eliminate or relocate any district, regional, or border office
of the United States Customs Service; or
(3) significantly reduce the number of employees assigned to
any district, regional, or border office of the United States
Customs Service.
(b) The provisions of this section shall not apply after September 30,1985.
(c) The amendment made by subsection (a) shall take effect after
the effective date of any provision of law enacted by the 98th
Congress that would, but for this section, limit the authority of the
Commissioner of Customs to reorganize or consolidate any district,
regional, or border office of the Service.

Effective dates.

SEC. 238. COLUMBIA-SNAKE CUSTOMS DISTRICT.

The Commissioner of the United States Customs Service shall
establish a customs district that shall—
(1) be known as the Columbia-Snake Customs District;
(2) have headquarters at Portland, Oregon; and
(3) consist of the following areas:

19 use 2 note.

98 STAT. 2994

PUBLIC LAW 98-573—OCT. 30, 1984

(A) The State of Oregon.
(B) That part of the State of Idaho below 47 latitude.
(C) The following counties in the State of Washington:
Adams,
Asotin,
Benton,
Clark,
Columbia,
Cowlitz,
Franklin,
Garfield,
Klickitat,
Skamania,
Wahkiakum,
Walla Walla, and
Whitman.
(D) That area of Pacific County, State of Washington,
south of a line that would be in effect if the northern
boundary of Wahkiakum County were extended westward
to the Pacific Ocean.
The ports of entry for Columbia-Snake Customs District are those
ports of entry that were within the areas described in paragraph (3)
on the date of the enactment of this Act; except that Boise, Idaho, is
an additional port of entry for that District.
SEC. 239. RELIQUIDATION OF CERTAIN MASS SPECTROMETER SYSTEMS.

19 use 1514,
1520.

Notwithstanding sections 514 and 520 of the Tariff Act of 1930 and
any other provision of law, the Secretary of the Treasury is authorized to reliquidate within six months of the date of enactment of this
Act the entry of 2 mass spectrometer systems—
(1) which were imported into the United States for the use of
Montana State University, Bozeman, Montana, and
(2) with respect to which applications were filed with the
International Trade Administration of the Department of Commerce for duty-free entry of scientific instruments that were
assigned the docket numbers 82-00323 and 83-108 (described in
47 Federal Register 41409 and 48 Federal Register 13214,
respectively),
if the Secretary of Commerce finds that these systems are eligible to
enter free of duty pursuant to headnote 6 of part 4 of schedule 8 of
the Tariff Schedules of the United States.
SEC. 240. MAX PLANCK INSTITUTE FOR RADIOASTRONOMY.

(aXD The Secretary of the Treasury is authorized and directed to
admit free of duty any article provided by the Max Planck Institute
for Radioastronomy of the Federal Republic of Germany to the joint
astronomical project being undertaken by the Steward Observatory
of the University of Arizona and the Max Planck Institute for the
construction, installation, and operation of a sub-mm telescope in
the State of Arizona if—
(A) such article is an instrument or apparatus (within the
meaning of headnote 6(a) of part 4 of schedule 8 of the Tariff
Schedules of the United States (19 U.S.C. 1202)), and
(B) no instruments or apparatus of equivalent scientific value
for the purposes for which such article is intended to be used is
being manufactured in the United States.

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 2995

(2) For purposes of paragraph 1(B), scientific testing equipment
provided by the Max Planck Institute and necessary for aligning,
calibrating, or otherwise testing an instrument or apparatus shall
be considered to be part of such instrument or apparatus.
(b) The University of Arizona or the Max Planck Institute shall
submit to the United States Customs Service and to the International Trade Administration descriptions of the articles sought to be
admitted free of duty containing sufficient detail to allow the United
States Customs Service to determine whether subsection (a)(1)(A) is
satisfied and the International Trade Administration to determine
whether subsection (a)(lXB) is satisfied. The descriptions may be
submitted in a single or in several submissions to each agency, as
the University of Arizona or the Max Planck Institute deem appropriate during the course of the project. The United States Customs
Service and the International Trade Administration are directed to
make their respective determinations under this section within
ninety days of the date the agency receives a sufficient submission of
information with respect to any article.
(c) The Secretary of the Treasury is authorized and directed to
readmit free of duty any article admitted free of duty under subsection (a) and subsequently returned to the Federal Republic of Germany for repair, replacement, or modification.
(d) The Secretary of the Treasury is authorized and directed to
admit free of duty any repair components for articles admitted free
of duty under subsection (a).
(e) If any article admitted free of duty under subsection (a) is used
for any purpose other than the joint project described in subsection
(a)(1) within five years after being entered, duty on the article shall
be assessed in accordance with the procedures established in headnote 1 of part 4 of schedule 8 (19 U.S.C. 1202).
(f) The provisions of subsection (a) shall apply with respect to
articles entered for consumption after the day which is 15 days after
the date of enactment of this Act and before November 1, 1993.
SEC. 241 DUTY-FREE ENTRY FOR RESEARCH EQUIPMENT FOR NORTH
DAKOTA STATE UNIVERSITY, FARGO, NORTH DAKOTA.
The research equipment that was imported for the use of North
Dakota State University, Fargo, North Dakota, and entered on
September 15, 1983, under entry number 83-116431-9, at Seattle,
Washington, shall be considered to have been admitted free of duty
as of the date of such entry. If the liquidation of such entry has
become final, the Secretary of the Treasury shall reliquidate such
entry and make the appropriate refund of any duty paid on such
equipment.
SEC. 242. DUTY-FREE ENTRY FOR PIPE ORGAN FOR THE CRYSTAL CATHEDRAL GARDEN GROVE, CALIFORNIA.

The pipe organ which was imported for the use of the Crystal
Cathedral of Garden Grove, California, and entered in six shipments
between April 30,1981, and April 8,1982, at Los Angeles, California,
shall be considered to have been admitted free of duty as of the date
of each such entry. If the liquidation of any such entry has become
final, the Secretary of the Treasury shall reliquidate each such
entry and make the appropriate refund of any duty paid on such
organ.

Effective date,

98 STAT. 2996

PUBLIC LAW 98-573—OCT. 30, 1984

SEC. 243. DUTY-FREE ENTRY FOR SCIENTIFIC EQUIPMENT FOR THE
ELLIS FISCHEL STATE CANCER HOSPITAL, COLUMBIA,
MISSOURI.

19 use 1654.

Notwithstanding any provision of the Tariff Act of 1930 or any
other provisions of the law to the contrary, the Secretary of the
Treasury shall reliquidate, as duty free, the entries numbered
220286 (dated November 7, 1975) and 235380 (dated January 23,
1976) made at Chicago, Illinois, and covering scientific equipment
for the use of the Ellis Fischel Cancer Hospital, Columbia, Missouri,
in accordance with the decision of the Department of Commerce in
docket numbered 76-00199-33-00530.
SEC. 244. DUTY-FREE ENTRY OF ORGANS IMPORTED FOR THE USE OF
TRINITY CATHEDRAL OF CLEVELAND, OHIO.

The organs made by Flentrop Orgel Bouw, the Netherlands, that
were imported for the use of Trinity Cathedral of Cleveland, Ohio,
and entered during 1973-1978 shall be considered to have been
admitted free of duty on the dates of entry. If the liquidation of any
such entry has become final, the Secretary of the Treasury, if
request therefor is filed with the appropriate customs officer within
180 days after the date of the enactment of this Act, shall reliquidate the entry and make the appropriate refund of any duty paid.
SEC. 245. SENSE OF CONGRESS REGARDING POSSIBLE EEC ACTION ON
CORN GLUTEN.

Whereas—
(1) the European Council of Ministers has directed the Commission of the European Community (EC) to initiate consultations with the United States and other interested parties under
article XXVIII of the General Agreement on Tariffs and Trade
(GATT) for the purpose of imposing tariff or tariff quota restrictions on imports of nongrain feed ingredients, including corn
gluten feed;
(2) the EC has considered proposals to impose a domestic
consumption tax on vegetable fats and oils, which would undermine the intention of the duty-free binding on certain corn and
soybean products imported from the United States;
(3) the EC has bound in the GATT that it will impose no
import duties on soybeans, soybean meal, com gluten feed, and
other com by-products, and such zero-tariff bindings were
agreed to in return for United States trade concessions to the
EC during previous rounds of trade negotiations;
(4) the EC h£is not demonstrated sound economic justification
for restrictions on the import of nongrain feed ingredients and
such restrictions would only shift the financial burden of EC
Common Agricultural Policy (CAP) reform from the EC to other
countries, with negligible improvement in the current EC
budget situation;
(5) action by the EX^ to breach a negotiated concession would
severely erode the basic GATT principle of comparative advantage and set a dangerous precedent which could threaten other
previously negotiated concessions and serve as a precursor to
restrictions on the import of soybeans £uid soybean products;
and
(6) the official position of the United States, as stated by the
Secretary of Agriculture, is that there is strong support for
the EC efforts to balance the Agricultural budget, but that the

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 2997

United States will oppose any efforts to limit its exports of corn
gluten feed to the EC;
it is the sense of Congress that—
(A) the President should continue to firmly oppose the imposition of any restriction on European Community imports of
nongrain feed ingredients, including corn gluten, and should
support the current duty-free binding on such products;
(B) the President should continue to rigorously oppose any
European Community proposals which would violate the intent
of the existing duty-free binding in the General Agreement on
Tariffs and Trade on soybeans and soybean products and reaffirm the United States conviction that the imposition of a
consumption tax on vegetable fats and oils by the European
Community would represent a restraint of trade; and
(C) if unilateral action is taken by the European Community
to restrict or inhibit the importation of either nongrain feed
ingredients, including corn gluten feed, or vegetable fats and
oils, including soybean products, the United States should act
immediately to restrict European Community imports of at
least the aggregate value of the reduced and potentially reduced
United States export products.
SEC. 246. STUDY ON HONEY IMPORTS.

(a) The Senate finds that—
(1) in 1976 the International Trade Commission found that
honey imports threatened serious injury to the domestic honey
industry and recommended action to control honey imports,
(2) the domestic honey industry is essential for production of
many agricultural crops,
(3) a significant part of our total diet is dependent directly or
indirectly on insect pollination, and
(4) it is imperative that the domestic honey bee industry be
maintained at a level sufficient to provide crop pollination.
(b) It is the sense of the Senate that the Secretary of Agriculture
should promptly request the President to call for an International
Trade Commission investigation of honey imports, under section 22
of the Agriculture Adjustment Act.
SEC. 247. COPPER IMPORTS.

(a) The Congress finds that—
(1) the United States International Trade Commission unanimously found that the United States copper producing industry
is being seriously injured by copper imports;
(2) worldwide copper prices are at record low levels;
(3) foreign copper producers have increased their copper production in spite of depressed world prices in an effort to meet
their external debt obligations;
(4) United States copper production has been reduced by over
forty percent and over half of the work force has been laid off;
(5) continuation of the current depressed world price for
copper threatens severe economic distress for less developed
countries which are dependent on copper exports as their major
source of foreign exchange;
(6) the competitivness of United States copper producers could
be enhanced through the investment which could be generated
if worldwide copper prices returned to more historically representative levels; and

7 use 624.

98 STAT. 2998

Report.

PUBLIC LAW 98-573—OCT. 30, 1984

(7) a balanced reduction in foreign copper production which
raises marginally the world price for copper would not disadvantage domestic fabricators by creating a two-tier pricing
system.
(b) It is the sense of Congress that the President should negotiate
with the principal foreign copper-producing countries to conclude
voluntary restraint agreements with those governments for the
purpose of effecting a balanced reduction of total annual foreign
copper production for a period of between three and five years in
order to—
(1) allow the price of copper on international markets to rise
modestly to levels which will permit the remaining copper
operations located in the United States to attract needed capital, and
(2) achieve a secure domestic supply of copper.
(c) It is the further sense of the Congress that the President should
submit a report to Congress, within twelve months of the date of
enactment of this Act, explaining—
(1) the results of his negotiations; or
(2) why he felt it was inappropriate or unnecessary to undertake such negotiations.
SEC. 248. DISAPPROVAL OF PRESIDENTIAL DETERMINATIONS UNDER
SECTION 203 OF THE TRADE ACT OF 1974.

19 use 2251.
19 use 2252.

(a)(1) Section 203(c)(1) of the Trade Act of 1974 (19 U.S.C. 2253(c)(1))
is amended to read as follows:
"(1) If the President reports under subsection (b) that he is taking
action which differs from the action recommended by the Commission under section 201(d)(1)(A), or that he will not provide import
rel;ief, the action recommended by the Commission shall take effect
(as provided in paragraph (2)) upon enactment of a joint resolution
described in section 152(a)(1)(A) within the 90-day period beginning
on the date on which the document referred to in subsection (b) is
transmitted to the Congress.".
(2) Section 203(c)(2) of the Trade Act of 1974 (19 U.S.C. 2253(c)(2)) is
amended—
(A) by striking out "adoption of such resolution" and inserting
in lieu thereof "enactment of the joint resolution referred to in
paragraph (1)", and
(B) by striking out "section 201(b)" and inserting in lieu
thereof "section 201(d)".
Ob) Section 152(a)(1)(A) of the Trade Act of 1974 (19 U.S.C.
2192(a)(1)(A)) is amended by striking out "concurrent resolution"
and inserting in lieu thereof "joint resolution".
(c) Section 330(d)(4) of the Tariff Act of 1930 (19 U.S.C. 1330(d)(4)) is
amended by striking out "the concurrent resolution described in
such section 152" and inserting in lieu thereof "the joint resolution
described in such section 152(a)(1)(A)".
SEC. 249. SECTION 201 CRITERIA.

Section 201(b) of the Trade Act of 1974 (19 U.S.C. 2251(b)) is
amended—
(1) by amending paragraph (2)—
(A) by inserting "(whether maintained by domestic producers, importers, wholesalers, or retailers)" after "inventory" in subparagraph (B),
(B) by striking out "and" at the end of subparagraph (B),

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 2999

(C) by striking out the period at the end of subparagraph
(C) and inserting in Heu thereof "; and", and
(D) by adding at the end thereof the following:
"(D) the presence or absence of any factor which the Commission is required to evaluate in subparagraphs (A) and (B) shall
not necessarily be dispositive of whether an article is being
imported into the United States in such increased quantities as
to be a substantial cause of serious injury or threat of serious
injury to the domestic industry."; and
(2) by adding at the end thereof the following new paragraph:
"(7) For purposes of this section, the term 'significant idling of
productive facilities' includes the closing of plants or the underutilization of production capacity.".
SEC. 250. HOGS AND PORK PRODUCTS FROM CANADA.
The pork industry contributes $9,000,000,000 annually to the
United States economy;
Over four hundred and fifty thousand United States farmers
produce pork for domestic and foreign markets;
United States imports of live hogs from Canada averaged one
hundred thousand animals each year between 1970 and 1974, yet
since 1981, such imports have increased yearly from one hundred
and forty-six thousand head to an estimated more than one million
head in 1984;
The adverse economic effect of the recent surge in imports of
Canadian hogs and pork products on United States pork producers
has been estimated to be in excess of $500,000,000 in 1982 and 1983,
and approximately $300,000,000 during the first five months of 1984;
The Canadian Government provides price support for hogs at a
level equal to 90 per centum of the previous five-year average
market price, indexed for changes in cash costs of production of
hogs, which represented a payment of $6.54 per head to Canadian
pork producers last year, and all but one provincial government of
Canada also provide direct production assistance to support
Canadian pork producers; and
It is essential that the administration act immediately to address
the threat to the United States pork production industry caused by
the dramatic increase in imports of hogs and pork products from
Canada.
It is the sense of the Senate that the President should direct
appropriate members of the administration, including the United
States Trade Representative, the Secretary of Agriculture, and the
Secretary of Commerce, to aggressively pursue discussions with the
Canadian Government directed toward resolving this situation and
use all available authorities in an effort to protect the economic
viability of the United States pork industry and to promote free and
fair trade.
SEC. 251. COPYRIGHT PROTECTION OF COMPUTER SOFTWARE.

Since the development of computer software and other information technologies is increasingly important to economic growth and
productivity in the United States and other nations;
Since the United States is the world leader in the technological
development of computer software and in the production and sale of
computer software;
Since the United States has since 1964 considered computer
software a work of authorship protected by copyright and this form

98 STAT. 3000

PUBLIC LAW 98-573—OCT. 30, 1984

of intellectual property right protection has served to encourage
continuing research, development, and innovation of computer
software;
Since copyright protection is afforded computer software by most
industrialized nations including Japan, the Netherlands, France,
the Federal Republic of Germany, the United Kingdom, South
Africa, Hungary, Taiwan, and Australia;
Since Japan is reviewing a proposal to abandon copyright protection of software and to adopt a system that rejects the principle that
software is a work of authorship;
Since Japan is reviewing a proposal that also provides broadly
for the compulsory licensing of software; and
Since the enactment by Japan of such a proposal could prompt
the adoption of similar proposals by other nations currently considering this question, with serious adverse effects on the existing
international order for the protection of intellectual property rights:
Now, therefore, be it
Declared that it is the sense of the Congress that—
(1) copyright protection is an essential form of intellectual
property right protection for computer software;
(2) any proposal to abandon copyright protection of software
or to provide a new system of legal protection that incorporates
compulsory licensing of software would (A) disserve the goal of
promoting continuing development and innovation in computer
software; (B) undermine the international consensus that computer software is a work of authorship protected by copyright;
(C) result in economic harm to the computer software industry
of the United States, and also of Japan and of other nations; and
(D) contribute to increasing trade tensions among the nations of
the world; and
(3) if a nation withdraws copyright protection of software or
provides for broad compulsory licensing of software, it would be
in the interests of the United States and other nations to seek
appropriate relief, including that provided under the Universal
Copyright Convention, to ensure the just protection of intellectual property rights and the promotion of free and fair trade.

International
Investment Act.

19 use 2101
note.

19 use 2101.
19 use 2102

TITLE III—INTERNATIONAL TRADE AND
INVESTMENT

SEC. 301. SHORT TITLE; AMENDMENT OF TRADE ACT OF 1974.
(a) This title may be cited as the "International Trade and Investment Act".
(b) Except as otherwise expressly provided, whenever in this title
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 be made to a section or other provision of the Trade
Act of 1974.
SEC. 302. STATEMENT OF PURPOSES.
The purposes of this title are—
(1) to foster the economic growth of, and full employment in,
the United States by expanding competitive United States exports through the achievement of commercial opportunities in
foreign markets substantially equivalent to those accorded by
the United States;

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3001

(2) to improve the ability of the President—
(A) to identify and to analyze barriers to (and restrictions
on) United States trade and investment, and
(B) to achieve the elimination of such barriers and
restrictions;
(3) to encourage the expansion of—
(A) international trade in services through the negotiation of agreements (both bilateral and multilateral) which
reduce or eliminate barriers to international trade in services, and
(B) United States service industries in foreign commerce;
and
(4) to enhance the free flow of foreign direct investment
through the negotiation of agreements (both bilateral and multilateral) which reduce or eliminate the trade distortive effects
of certain investment-related measures.
SEC. 303. ANALYSIS OF FOREIGN TRADE BARRIERS.

(a) Title I (19 U.S.C. 2111 et seq.) is amended by adding at the end
thereof the following new chapter:

"CHAPTER 8—BARRIERS TO MARKET ACCESS
"SEC. 181. ACTIONS CONCERNING BARRIERS TO MARKET ACCESS.
"(a) NATIONAL TRADE ESTIMATES.—

"(1) IN GENERAL.—Not later than the date on which the initial
report is required under subsection (b)(1), the United States
Trade Representative, through the interagency trade organization established pursuant to section 242(a) of the Trade Expansion Act of 1962 shall—
"(A) identify and analyze acts, policies, or practices which
constitute significant barriers to, or distortions of—
"(i) United States exports of goods or services (including agricultural commodities; and property protected
by trademarks, patents, and copjn-ights exported or
licensed by United States persons), and
"(ii) foreign direct investment by United States persons, especially if such investment has implications for
trade in goods or services; and
"(B) make an estimate of the trade-distorting impact on
United States commerce of any act, policy, or practice
identified under subparagraph (A).

19 USC 2241.

19 use 1872.

"(2) CERTAIN FACTORS TAKEN INTO ACCOUNT IN MAKING ANALY-

SIS AND ESTIMATE.—In making any analysis or estimate under
paragraph (1), the Trade Representative shall take into
account—
"(A) the relative impact of the act, policy, or practice on
United States commerce;
"(B) the availability of information to document prices,
market shares, and other matters necessary to demonstrate
the effects of the act, policy, or practice;
"(C) th3 extent to which such act, policy, or practice is
subject to international agreements to which the United
States is a party; and
"(D) any advice given through appropriate committees
established pursuant to section 135.

19 use 2155.

98 STAT. 3002

PUBLIC LAW 98-573—OCT. 30, 1984
"(3) ANNUAL REVISIONS AND UPDATES.—The Trade Representative sheill annually revise and update the analysis and estimate
under paragraph (1).
"(b) REPORT TO CONGRESS.—

Ante, p. 3000.

"(1) I N GENERAL.—On or before the date which is one year
after the date of the enactment of the International Trade and
Investment Act, and each year thereafter, the Trade Representative shall submit the analysis and estimate under subsection
(a) to the Committee on Finance of the Senate and to the
Committee on Ways and Means of the House of Representatives.
"(2)

REPORTS TO INCLUDE INFORMATION WITH RESPECT TO

ACTION BEING TAKEN.—The Trade Representative shall include
in each report submitted under paragraph (1) information with
respect to any action taken (or the reasons for no action taken)
to eliminate any act, policy, or practice identified under subsection (a), including, but not limited to—
"(A) any action under section 301, or
"(B) negotiations or consultations with foreign
governments.
"(3) CONSULTATION WITH CONGRESS ON TRADE POLICY PRIOR-

ITIES.—The Trade Representative shall keep the committees
described in paragraph (1) currently informed with respect to
trade policy priorities for the purposes of expanding market
opportunities.
"(c) ASSISTANCE OF OTHER AGENCIES.—
"(1) FURNISHING OF INFORMATION.—The

head of each department or Eigency of the executive branch of the Government,
including any independent agency, is authorized and directed to
furnish to the Trade Representative or to the appropriate
agency, upon request, such data, reports, and other information
as is necessary for the Trade Representative to carry out his
functions under this section.
"(2) RESTRICTIONS ON RELEASE OR USE OF INFORMATION.—Noth-

ing in this subsection shall authorize the release of information
to, or the use of information by, the Trade Representative in a
manner inconsistent with law or any procedure established
pursuant thereto.
"(3) PERSONNEL AND SERVICES.—The head of any department,
agency, or instrumentality of the United States may detail such
personnel and may furnish such services, with or without reimbursement, as the Trade Representative may request to assist in
carrying out his functions.",
(b) The table of contents for title I is amended by adding at the
end thereof the following:
"CHAPTER 8—BARRIERS TO MARKET ACCESS

"Sec. 181. Actions concerning barriers to market access.".
SEC. 304. AMENDMENTS TO TITLE i l l OF THE TRADE ACT OF 1974.

(a) Section 301(a) (19 U.S.C. 2411(a)) is amended to read as follows:
"(a) DETERMINATIONS REQUIRING ACTION.—

President of U.S.

"(1) IN GENERAL.—If the President determines that action by
the United States is appropriate—
"(A) to enforce the rights of the United States under any
trade agreement; or

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3003

"(B) to respond to any act, policy, or practice of a foreign
country or instrumentality that—
(i) is inconsistent with the provisions of, or otherwise denies benefits to the United States under, any
trade agreement, or
"(ii) 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.
"(2) SCOPE OF ACTION.—The President may exercise his

authority under this section with respect to any goods or
sector—
"(A) on a nondiscriminatory basis or solely against the
foreign country or instrumentality involved, and
"(B) without regard to whether or not such goods or
sector were involved in the act, policy, or practice identified
under paragraph (1).".
(b) Section 301(b) (19 U.S.C. 2411(b)) is amended—
(1) by striking out "and" at the end of paragraph (1);
(2) by inserting ", notwithstanding any other provision of
law," before "fees in paragraph (2); and
(3) by striking out products" in paragraph (2) and inserting
in lieu thereof "goods".
(c) Section 301 is amended by redesignating subsections (c) and (d)
as subsections (d) and (e), respectively, and by inserting after subsection (b) the following new subsection:
"(c) ADDITIONAL ACTIONS ON SERVICES.—

"(1) I N GENERAL.—Notwithstanding any other provision of law
governing any service sector access authorization, and in addition to the authority conferred in subsection (b), the President
may—
"(A) restrict, in the manner and to the extent the President deems appropriate, the terms and conditions of any
such authorization, or
"(B) deny the issuance of any such authorization.
"(2) AFFECTED AUTHORIZATIONS.—Actions under paragraph (1)
shall apply only with respect to service sector access authorizations granted, or applications therefor pending, on or after the
date on which—
"(A) a petition is filed under section 302(a), or
infra.
"(B) a determination to initiate an investigation is made
by the United States Trade Representative (hereinafter in
this chapter referred to as the 'Trade Representative')
under section 302(c).
"(3) CONSULTATION.—Before the President takes action under
subsection (b) or (c) involving the imposition of fees or other
restrictions on the services of a foreign country, the Trade
Representative shall, if the services involved are subject to
regulation by any agency of the Federal Government or of any
State, consult, as appropriate, with the head of the agency
concerned.".
(dXD Section 302 (19 U.S.C. 2412) is amended to read as follows:
"SEC. 302. INITIATION OF INVESTIGATIONS BY UNITED STATES TRADE
REPRESENTATIVE.
"(a) FiUNG OF PETITION.—

98 STAT. 3004

Arete, p. 3002.

Federal

^g?^J,
pu ica ion.

PUBLIC LAW 98-573—OCT. 30, 1984
"(1) I N GENERAL.—Any interested person may file a petition
with the United States Trade Representative (hereinafter in
this chapter referred to as the 'Trade Representative') requesting the President to take action under section 301 and setting
forth the allegations in support of the request.
"(2) REVIEW OF ALLEGATIONS.—The Trade Representative
shall review the allegations in the petition and, not later than
forty-five 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 Trade

Representative
determines not to initiate an investigation with respect to a
petition, he shall inform the petitioner of the reasons therefor
and shall publish notice of the determination, together with a
summary of such reasons, in the Federal Register.
"(2) AFFIRMATIVE DETERMINATION.—If the Trade Representative determines to initiate an investigation with respect to a
petition, he shall initiate an investigation regarding the issues
raised. The Trade Representative shall publish a summary of
the petition in the Federal Register and shall, as soon as
possible, provide opportunity for the presentation of views concerning the issues, including a public hearing—
"(A) within the thirty-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 or by any interested person.

"(c) DETERMINATION T O INITIATE BY MOTION OF TRADE REPRESENTATIVE.—
"(1) DETERMINATION TO INITIATE.—If the Trade Representative

19 use 2155.
19 use 2171.

Ante, p. 3003.

determines with respect to any matter that an investigation
should be initiated in order to advise the President concerning
the exercise of the President's authority under section 301, the
Trade Representative shall publish such determination in the
Federal Register and such determination shall be treated as an
affirmative determination under subsection (bX2).
"(2) CONSULTATION BEFORE INITIATION.—The Trade Representative shall, before making any determination under paragraph
(1), consult with appropriate committees established pursuant to
section 135.".
(2XA) Section 141(d) is amended—
(i) by striking out "and" at the end of paragraph (6),
(ii) by striking out the period at the end of paragraph (7) and
inserting in lieu thereof a semicolon and "and", and
(iii) by adding at the end thereof the following new paragraph:
"(8) provide, where authorized by law, copies of documents to
persons at cost, except that any funds so received shall be
credited to, and be available for use from, the account from
which expenditures relating thereto were made.".
(B) Section 303 (19 U.S.C. 2413) is amended—
(i) by striking out "with respect to a petition";
(ii) by inserting "or the determination of the 'Trade Representative Under section 302(cXl)" after "in the petition"; and
(iii) by inserting "(if any)" after "petitioner".

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3005

(C) Section 304 (19 U.S.C. 2414) is amended by striking out "issues
raised in the petition" and inserting in lieu thereof "matters under
investigation" in paragraph (1) of subsection (a).
(D) The item relating to section 302 in the table of contents is
amended to read as follows:
"Sec. 302. Initiation of Investigations by United States Trade Representative.".

(e) Section 303 (19 U.S.C. 2413) is amended—
(1) by inserting "(a) I N GENERAL.—" before "On"; and

(2) by adding at the end thereof the following new subsection:
"db) DELAY OF REQUEST FOR CONSULTATIONS FOR U P TO 90 DAYS.—

"(1) I N GENERAL.—Notwithstanding the provisions of subsection (a)—
"(A) the United States Trade Representative may delay
for up to 90 days any request for consultations under
subsection (a) for the purpose of verifying or improving the
petition to ensure an adequate basis for consultation, and
"(B) if such consultations are delayed by reason of subparagraph (A), each time limitation under section 304 shall
be extended for the period of such delay.
"(2) NOTICE AND REPORT.—The Trade Representative shall—
"(A) publish notice of any delay under paragraph (1) in
the Federal Register, and
"(B) report to Congress on the reasons for such delay in
the report required by section 306.".
(f)(1) Paragraph (1) of section 301(e) (19 U.S.C. 2411(e)), as redesignated by subsection (c) of this section, is amended to read as follows:
"(1) COMMERCE.—The term 'commerce' includes, but is not
limited to—
"(A) services (including transfers of information) associated with international trade, whether or not such services are related to specific goods, and
"(B) foreign direct investment by United States persons
with implications for trade in goods or services.".
(2) Section 301(e) (19 U.S.C. 2411(e)), as redesignated by subsection
(c) of this section, is amended by adding at the end thereof the
following new paragraphs:
"(3) UNREASONABLE.—The term 'unreasonable' means any
act, policy, or practice which, while not necessarily in violation
of or inconsistent with the international legal rights of the
United States, is otherwise deemed to be unfair and inequitable.
The term includes, but is not limited to, any act, policy, or
practice which denies fair and equitable—
"(A) market opportunities;
"(B) opportunities for the establishment of an enterprise;
or
"(C) provision of adequate and effective protection of
intellectual property rights.
"(4) UNJUSTIFIABLE.—

"(A) I N GENERAL.—The term 'unjustifiable' means any
act, policy, or practice which is in violation of, or inconsistent with, the international legal rights of the United States.
"(B) CERTAIN ACTIONS INCLUDED.—The term 'unjustifiable' includes, but is not limited to, any act, policy, or
practice described in subparagraph (A) which denies

19 use 2414.
Federal
^^fi^^t'
^^ ^'^^ ^°^'
19 use 2416.

98 STAT. 3006

PUBLIC LAW 98-573—OCT. 30, 1984

national or most-favored-nation treatment, the right of
estabhshment, or protection of intellectual property rights.
"(5) DEFINITION OF DISCRIMINATORY.—The term 'discriminatory' includes, where appropriate, any act, policy, or practice
which denies national or most-favored-nation treatment to
United States goods, services, or investment.
"(6) SERVICE SECTOR ACCESS AUTHORIZATION.—The term 'service sector access authorization' means any license, permit,
order, or other authorization, issued under the authority of
Federal law, that permits a foreign supplier of services access to
the United States market in a service sector concerned.".
(3) Section 301(e) (19 U.S.C. 2411(e)), as redesignated by subsection
(c) of this section, is amended by striking out the heading and
inserting in lieu thereof:
"(e) DEFINITIONS; SPECIAL RULE FOR VESSEL CONSTRUCTION SUBSI-

DIES.—For purposes of this section—".
(g) Section 305 of the Trade Act of 1974 (19 U.S.C. 2415) is
amended by adding at the end thereof the following new subsection:
Confidentiality.

"(c) CERTAIN BUSINESS INFORMATION NOT M A D E AVAILABLE.—

"(1) I N GENERAL.—Except as provided in paragraph (2), and
notwithstanding any other provision of law (including section
552 of title 5, United States Code), no information requested and
received by the Trade Representative in aid of any investigation
under this chapter shall be made available to any person if—
"(A) the person providing such information certifies
that—
"(i) such information is business confidential,
"(ii) the disclosure of such information would endanger trade secrets or profitability, and
"(iii) such information is not generally available;
"(B) the Trade Representative determines that such certification is well-founded; and
"(C) to the extent required in regulations prescribed by
the Trade Representative, the person providing such information provides an adequate nonconfidential summary of
such information.
"(2) USE OF INFORMATION.—The Trade Representative may—
"(A) use such information, or make such information
available (in his own discretion) to any employee of the
Federal Government for use, in any investigation under
this chapter, or
"(B) may make such information available to any other
person in a form which cannot be associated with, or otherwise identify, the person providing the information.".
SEC. 305. NEGOTIATING OBJECTIVES WITH RESPECT TO INTERNATIONAL
TRADE IN SERVICES AND INVESTMENT AND HIGH TECHNOLOGY INDUSTRIES.

(aXD Chapter 1 of title I is amended by inserting immediately
after section 104 the following new section:
19 u s e 2114a.

"SEC. 104A. NEGOTIATING OBJECTIVES WITH RESPECT TO TRADE IN
SERVICES, FOREIGN DIRECT INVESTMENT, AND HIGH
TECHNOLOGY PRODUCTS.
"(a) TRADE IN SERVICES.—

19 use 2112.

"(1) IN GENERAL.—Principal United States negotiating objectives under section 102 shall be—

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3007

"(A) to reduce or to eliminate barriers to, or other distortions of, international trade in services (particularly United
States service sector trade in foreign markets), including
barriers that deny national treatment and restrictions on
the establishment and operation in such markets; and
"(B) to develop internationally agreed rules, including
dispute settlement procedures, which—
"(i) are consistent with the commercial policies of the
United States, and
"(ii) will reduce or eliminate such barriers or distortions and help ensure open international trade in
services.
"(2) DOMESTIC OBJECTIVES.—In pursuing the objectives described in paragraph (1), United States negotiators shall take
into account legitimate United States domestic objectives including, but not limited to, the protection of legitimate health or
safety, essential security, environmental, consumer or employment opportunity interests and the laws and regulations related
thereto.
"(b) FOREIGN DIRECT INVESTMENT.—

"(1) I N GENERAL.—Principal United States negotiating objectives under section 102 shall be—
"(A) to reduce or to eliminate artificial or trade-distorting
barriers to foreign direct investment, to expand the principle of national treatment, and to reduce unreasonable barriers to establishment; and
"(B) to develop internationally agreed rules, including
dispute settlement procedures, which—
"(i) will help ensure a free flow of foreign direct
investment, and
"(ii) will reduce or eliminate the trade distortive
effects of certain investment related measures.
"(2) DOMESTIC OBJECTIVES.—In pursuing the objectives described in paragraph (1), United States negotiators shall take
into account legitimate United States domestic objectives including, but not limited to, the protection of legitimate health or
safety, essential security, environmental, consumer or employment opportunity interests and the laws and regulations related
thereto.
"(c) HIGH TECHNOLOGY PRODUCTS.—Principal United States negotiating objectives shall be—
"(1) to obtain and preserve the maximum openness with
respect to international trade and investment in high technology products and related services;
"(2) to obtain the elimination or reduction of, or compensation
for, the significantly distorting effects of foreign government
acts, policies, or practices identified in section 181, with particular consideration given to the nature and extent of foreign
government intervention affecting United States exports of
high technology products or investments in high technology
industries, including—
"(A) foreign industrial policies which distort international trade or investment;
"(B) measures which deny national treatment or otherwise discriminate in favor of domestic high technology
industries;

19 USC 2112.

Ante, p. 3001.

98 STAT. 3008

PUBLIC LAW 98-573—OCT. 30, 1984

"(C) measures which fail to provide adequate and effective means for foreign nationals to secure, exercise, and
enforce exclusive rights in intellectual property (including
trademarks, patents, and copyrights);
"(D) measures which impair access to domestic markets
for key commodity products; and
"(E) measures which facilitate or encourage anticompetitive market practices or structures;
"(3) to obtain commitments that official policy of foreign
countries or instrumentalities will not discourage government
or private procurement of foreign high technology products and
related services;
"(4) to obtain the reduction or elimination of all tariffs on,
and other barriers to. United States exports of high technology
products and related services;
"(5) to obtain commitments to foster national treatment;
"(6) to obtain commitments to—
"(A) foster the pursuit of joint scientific cooperation between companies, institutions or governmental entities of
the United States and those of the trading partners of the
United States in areas of mutual interest through such
measures as financial participation and technical and personnel exchanges, and
"(B) ensure that access by all participants to the results
of any such cooperative efforts should not be impaired; and
"(7) to provide effective minimum safeguards for the acquisition and enforcement of intellectual property rights and the
property value of proprietary data.
"(d) DEFINITION OF BARRIERS AND OTHER DISTORTIONS.—For purposes of subsection (a), the term 'barriers to, or other distortions of,
international trade in services' includes, but is not limited to—
"(1) barriers to establishment in foreign markets, and
"(2) restrictions on the operation of enterprises in foreign
markets, including—
"(A) direct or indirect restrictions on the transfer of
information into, or out of, the country or instrumentality
concerned, and
"(B) restrictions on the use of data processing facilities
within or outside of such country or instrumentality.".
(2) The table of contents for chapter 1 of title I is amended by
inserting after the item relating to section 104 the following new
item:
"Sec. 104A. N^otiating objectives with respect to trade in services, foreign direct
investment, and high technology products.".
19 u s e 2114b.

SEC. 306. PROVISIONS
SERVICES.

RELATING

TO

INTERNATIONAL

TRADE

IN

(aXD The Secretary of Commerce shall establish a service industries development program designed to—
(A) develop, in consultation with other Federal agencies as
appropriate, policies regarding services that are designed to
increase the competitiveness of United States service industries
in foreign commerce;
(B) develop a data base for assessing the adequacy of Government policies and actions pertaining to services, including, but

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3009

not limited to, data on trade, both aggregate and pertaining to
individual service industries;
(C) collect and analyze, in consultation with appropriate agencies, information pertaining to the international operations and
competitiveness of United States service industries, including
information with respect to—
(i) policies of foreign governments toward foreign and
United States service industries;
(ii) Federal, State, and local regulation of both foreign
and United States suppliers of services, and the effect of
such regulation on trade;
(iii) the adequacy of current United States policies to
strengthen the competitiveness of United States service
industries in foreign commerce, including export promotion
activities in the service sector;
(iv) tax treatment of services, with particular emphasis
on the effect of United States taxation on the international
competitiveness of United States firms and exports;
(v) treatment of services under international agreements
of the United States;
(vi) antitrust policies as such policies affect the competitiveness of United States firms; and
(vii) treatment of services in international agreements of
the United States;
(D) conduct a program of research and an£ilysis of servicerelated issues and problems, including forecasts and industrial
strategies; and
(E) conduct sectoral studies of domestic service industries.
(2) For purposes of the collection and analysis required by paragraph (1), and for the purpose of any reporting the Department of
Commerce makes under paragraph (3), such collection and reporting
shall distinguish between income from investment and income from
noninvestment services.
(3) On not less than a biennial basis beginning in 1986, the
Secretary shall prepare a report which analyzes the information
collected under paragraph (1). Such report shall be submitted to the
Congress and to the President by not later than the date that is 120
days after the close of the period covered by the report.
(4) The Secretary of Commerce shall carry out the provisions of
this subsection from funds otherwise made available to him which
may be used for such purposes.
(5) For purposes of this section, the term "services" means economic activities whose outputs are other than tangible goods. Such
term includes, but is not limited to, banking, insurance, transportation, communications and data processing, retail and wholesale
trade, advertising, accounting, construction, design and engineering,
management consulting, real estate, professional services, entertainment, education, health care, and tourism.
GJXD The International Investment Survey Act of 1976 (Public
Law 94-472; 22 U.S.C. 3101, et seq.) is hereby redesignated the
"International Investment and Trade in Services Survey Act".
(2XA) Subsection (a) of section 2 of the International Investment
and Trade in Services Survey Act (22 U.S.C. 3301) is amended—
(i) by striking out "and" at the end of paragraph (6);
(ii) by inserting "and trade in services" after "international
investment" in paragraph (7);
(iii) by redesignating paragraph (7) as paragraph (9); and

Report.

International
Investment and
Trade in
Services Survey
Act.
22 u s e 3101
note.

98 STAT. 3010

22 use 3101.

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19 use 1872.

PUBLIC LAW 98-573—OCT. 30, 1984

(iv) by inserting after paragraph (6) the following new
paragraphs:
"(7) United States service industries engaged in interstate and
foreign commerce account for a substantial part of the labor
force and gross national product of the United States economy,
and such commerce is rapidly increasing;
"(8) international trade and services is an important issue for
international negotiations and deserves priority in the attention
of governments, international agencies, negotiators, and the
private sector; and".
(B) Subsection (b) of section 2 of such Act is amended—
(i) by inserting "and United States foreign trade in services,
whether directly or by affiliates, including related information
necessary for assessing the impact of such investment and
trade," after "international investment" the first place it appears; and
(ii) by inserting "and trade in services" after "international
investment" the second place it appears.
(C) Subsection (c) of section 2 of such Act is amended by striking
out "or United States investment abroad" and inserting in lieu
thereof ", United States investment abroad, or trade in services".
(3) Paragraph (3) of section 4(a) of such Act (22 U.S.C. 3103(aX3)) is
amended—
(A) by inserting "Finance" after "to the Committees on", and
(B) by striking out "the Committee on Foreign Affairs" and
inserting in lieu thereof "the Committees on Ways and Means,
Energy and Commerce, and Foreign Affairs".
(4XA) Subsection (a) of section 4 of such Act (22 U.S.C. 3103(a)) is
amended—
(i) by striking out "presentation relating to international
investment" in paragraph (3) and inserting in lieu thereof
"presentation";
(ii) by inserting "and trade in services" after "international
investment" each place it appears in pareigraphs (1), (2), and (3);
(iii) by striking out "and" at the end of paragraph (3);
(iv) by redesignating paragraph (4) as paragraph (5); and
(v) by inserting after paragraph (3) the following new
paragraph:
"(4) conduct (not more frequently than once every five years
and in addition to any other surveys conducted pursuant to
paragraphs (1) and (2)) benchmark surveys with respect to trade
in services between unaffiliated United States persons and
foreign persons; and".
(B) Subparagraph (C) of section 4(bX2) of such Act is amended by
inserting "(including trade in both goods and services)" after "regarding trade".
(C) Subsection (f) of section 4 of such Act is gmiended by inserting
"and trade in services" after "international investment".
(5) Subsection (b) of section 5 of such Act (22 U.S.C. 3104) is
amended by striking out "international investment" each place it
appears.
(cXlXA) The United States Trade Representative, through the
interagency trade organization established pursuant to section
242(a) of the Trade Expansion Act of 1962 or any subcommittee
thereof, shall, in conformance with this Act and other provisions of
law, develop (and coordinate the implementation of) United States
policies concerning trade in services.

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3011

(B) In order to encourage effective development, coordination, and
implementation of United States policies on trade in services—
(i) each department or agency of the United States responsible
for the regulation of any service sector industry shall, as
appropriate, advise and work with the United States Trade
Representative concerning matters that have come to the department's or agency's attention with respect to—
(I) the treatment afforded United States service sector
interest in foreign markets; or
(II) allegations of unfair practices by foreign governments
or companies in a service sector; and
(ii) the Department of Commerce, together with other appropriate agencies as requested by the United States Trade Representative, shall provide staff support and other assistance for
negotiations on service-related issues by the United States
Trade Representatives and the domestic implementation of
service-related agreements.
(C) Nothing in this paragraph shall be construed to alter any
existing authority or responsibility with respect to any specific
service sector.
(2)(A) The President shall, as he deems appropriate—
President of U.S.
(i) consult with State governments on issues of trade policy,
including negotiating objectives and implementation of trade
agreements, affecting the regulatory authority of non-Federal
governments, or their procurement of goods and services;
(ii) establish one or more intergovernmental policy advisory
committees on trade which shall serve as a principal forum in
which State and local governments may consult with the
Federal Government with respect to the matters described in
clause (i); and
(iii) provide to State and local governments and to United
States service industries, upon their request, advice, assistance,
and (except as may be otherwise prohibited by law) data, analyses, and information concerning United States policies on international trade in services.
(B) Section 135 (19 U.S.C. 2155) is amended—
(i) by inserting "and the non-Federal governmental sector"
after ' private sector" in subsection (a),
(ii) by adding at the end of subsection (c) the following new
paragraph:
"(3) The President—
"(A) may establish policy advisory committees representing non-Federal governmental interests to provide, where
the President finds it necessary, policy advice—
"(i) on matters referred to in subsection (a), and
"(ii) with respect to implementation of trade agreements, and
"(B) shall include as members of committees established
under subparagraph (A) representatives of non-Federal governmental interests if he finds such inclusion appropriate
after consultation by the United States Trade Representative with such representatives.";
(iii) by inserting "or non-Federal government" after "private"
each place it appears in subsections (g) and (j);
(iv) by inserting "government," before "labor" in subsection
(j); and
(v) by adding at the end thereof the following new subsection:

98 STAT. 3012

PUBLIC LAW 98-573—OCT. 30, 1984

"(n) NON-FEDERAL GOVERNMENT DEFINED.—The term 'non-Federal
government' means—
"(1) any State, territory, or possession of the United States, or
the District of Columbia, or any political subdivision thereof, or
"(2) any agency or instrumentality of any entity described in
paragraph (1)."; and
(vi) by inserting "or Public" after "Private" in the heading
(CXi) Section 104(c) (19 U.S.C. 2114(c)) is amended by inserting "or
non-Federal governmental" after "private".
(ii) Section 303 (19 U.S.C. 2413) and section 304(b)(2) (19 U.S.C.
2414(bX2)) are each amended by striking out "private sector".
(iii) The table of sections for chapter 3 of title I is amended by
inserting "and public" after "private" in the item relating to section
135.
SEC. 307. NEGOTIATING AUTHORITY WITH RESPECT TO FOREIGN DIRECT
INVESTMENT.

19 use 2ii4d.

(a) Paragraph (3) of section 102(g) (19 U.S.C. 2112(gX3)) is amended
to read as follows:
"(3) the term 'international trade' includes—
"(A) trade in both goods and services, and
"(B) foreign direct investment by United States persons,
especially if such investment has implications for trade in
goods and services.".
(bXl) If the United States Trade Representative, with the advice of
the committee established by section 242 of the Trade Expansion of
1962 (19 U.S.C. 1872), determines that action by the United States is
appropriate to respond to any export performance requirements of
any foreign country or instrumentality that adversely affect the
economic interests of the United States, then the United States
Trade Representative shall seek to obtain the reduction and elimination of such export performance requirements through consultations and negotiations with the foreign country or instrumentality
concerned.
(2) In addition to the action referred to in subsection (1), the
United States Trade Representative may impose duties or other
import restrictions on the products or services of such foreign
country or instrumentality for such time as he determines appropriate, including the exclusion from entry into the United States of
products subject to such requirements.
(3) Nothing in paragraph (2) or paragraph (3) shall apply to any
products or services with respect to which—
(A) any foreign direct investment (including a purchase of
land or facilities) has been made directly or indirectly by any
United States person before the date of enactment of this Act,
or
(B) any written commitment relating to a foreign direct
investment that is binding on the date of enactment of this Act
has been made directly or indirectly by any United States
person.
(4) Whenever the international obligations of the United States
and actions taken under paragraph (2) make compensation necessary or appropriate, compensation may be provided by the United
States Trade Representative subject to the limitations and conditions contained in section 123 of the Trade Act of 1974 (19 U.S.C.

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3013

2133) for providing compensation for actions taken under section 203
of that Act.

Ante, p. 3003.

SEC. 308. NEGOTIATION OF AGREEMENTS CONCERNING HIGH TECHNOLOGY INDUSTRIES.

(a) The President may enter into such bilateral or multilateral i9USC2ii4e.
agreements as may be necessary or appropriate to achieve the
objectives of this section and the negotiating objectives under section 104A(c) of the Trade Act of 1974.
Ante, p. 3006.
0)X1) Chapter 2 of title I is amended by inserting at the end
thereof the following new section:
"SEC. 128. MODIFICATION AND CONTINUANCE OF TREATMENT WITH
RESPECT TO DUTIES ON HIGH TECHNOLOGY PRODUCTS.

19 USC 2138.

"(a) In order to cany out any agreement concluded as a result of
the negotiating objectives under section 104A(c), the President may 19 USC 2151
proclaim, subject to the provisions of chapter 3—
«^ seq.
"(1) such modification, elimination, or continuance of any
existing duty, duty-free, or excise treatment, or
"(2) such additional duties,
as he deems appropriate.
"0)) The President shall exercise his authority under subsection
(a) only with respect to the following items listed in the Tariff
Schedules of the United States (19 U.S.C. 1202):
"(1) Transistors (provided for in item 587.70, part 5, schedule
6).
"(2) Diodes and rectifiers (provided for in item 687.72, part 5,
schedule 6).
"(3) Monolithic integrated circuits (provided for in item
687.74, part 5, schedule 6).
"(4) Other integrated circuits (provided for in item 687.77,
part 5, schedule 6).
"(5) Other components (provided for in item 687.81, part 5,
schedule 6).
"(6) Parts of semiconductors (provided for in item 687.85, part
5, schedule 6).
"(7) Parts of automatic data-processing machines and units
thereof (provided for in item 676.52, part 4G, schedule 6) other
than parts incorporating a cathode ray tube.
"(c) TERMINATION.—The President may exercise his authority
under this section only during the 5-year period beginning on the
date of the enactment of the International Trade and Investment
Act.".
(2) The table of contents of chapter 1 of title I is amended by
adding at the end thereof the following new item:
"Sec. 128. Modification and continuance of treatment with respect to duties on high
technology products.".

TITLE IV—TRADE WITH ISRAEL
SEC. 401. NEGOTIATION OF TRADE AGREEMENTS TO REDUCE TRADE
BARRIERS.

(a) Subsection (b) of section 102 of the Trade Act of 1974 (19 U.S.C.
21120))) is amended—
(1) by striking out "Whenever" and inserting in lieu thereof
"(1) Whenever", and

31-194

0 - 8 6 - 2 1

: QL.3

PartS

98 STAT. 3014

PUBLIC LAW 98-573—OCT. 30, 1984

19 use 2411.

(2) by adding at the end thereof the following new paragraphs:
"(2XA) Trade agreements that provide for the elimination or
reduction of any duty imposed by the United States may be entered
into under paragraph (1) only with Israel.
"(B) The negotiation of any trade agreement entered into under
paragraph (1) with Israel that provides for the elimination or reduction of any duty imposed by the United States shall take fully into
account any product that benefits from a discriminatory preferential tariff arrangement between Israel and a third country if the
tariff preference on such product has been the subject of a challenge
by the United States Government under the authority of section 301
of the Trade Act of 1974 and the General Agreement on Tariffs and

TIAS1700.

Trade.

19 use 2191.

"(C) Notwithstanding any other provision of this section, the
requirements of subsections (c) and (e)(1) shall not apply to any trade
agreement entered into under paragraph (1) with Israel that provides for the elimination or reduction of any duty imposed by the
United States.
"(3) Notwithstanding any other provision of law, no trade benefit
shall be extended to any country by reason of the extension of any
trade benefit to another country under a trade agreement entered
into under pars^aph (1) with such other country.
"(4XA) Notwithstanding paragraph (2), a trade ^ e e m e n t that
provides for the elimination or reduction of any duty imposed by the
United States may be entered into under paragraph (1) with any
country other than Israel if—
(i) such country requested the negotiation of such an agreement, and
"(ii) the President, at least 60 days prior to the date notice is
provided under subsection (eXl)—
"(I) provides written notice of such negotiations to the
Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives, and
"(II) consults with such committees regarding the negotiation of such agreement.
"(B) The provisions of section 151 shall not apply to an implementing bill (within the meaning of section 151(b)) if—
"(i) such implementing bill contains a provision approving of
any trade agreement which—
"(I) is entered into under this section with any country
other than Israel, and
"(II) provides for the elimination or reduction of any duty
imposed by the United States, and
"(ii) either—
"(I) the requirements of subparagraph (A) were not met
with respect to the negotiation of such agreement, or
"(II) the Committee on Finance of the Senate or the
Committee on Ways and Means of the House of Representatives disapproved of the negotiation of such agreement
before the close of the 60-day period which begins on the
date notice is provided under subsection (AXiiXD with
respect to the negotiation of such agreement.
"(C) The 60-day period described in subparagraphs (AXii) and
(BXii)(II) shall be computed without regard to—
"(i) the days on which either House of Congress is not in
session because of an adjournment of more than 3 days to a day
certain or an adjournment of the Congress sine die, and

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3015

"(ii) any Saturday and Sunday, not excluded under clause (i),
when either House of Congress is not in session.",
(b) Paragraph (1) of section 102(g) of the Trade Act of 1974 (19
U.S.C. 2112(g)) is amended to read as follows:
"(1) the term 'barrier' includes—
"(A) the American selling price basis of customs evaluation as defined in section 402 or 402a of the Tariff Act of
1930, as appropriate, and
"(B) any duty or other import restriction;".
(cXD Section 102 of the Trade Act of 1974 (19 U.S.C. 2112) is
amended by striking out "Nontariff' in the heading.
(2) The table of contents of the Trade Act of 1974 is amended by
striking out "Nontariff in the item relating to section 102.
SEC. 402. CRITERIA FOR DUTY-FREE TREATMENT OF ARTICLES.

19 USC 2112

(a)(1) Any trade agreement entered into with Israel under section
102(bXl) of the Trade Act of 1974 may provide for the reduction or Ante, p. 3013.
elimination of any duty imposed by the United States with respect
to any article only if—
(A) that article is the growth, product, or manufacture of
Israel or is a new or different article of commerce that has been
grown, produced, or manufactured in Israel;
(B) that article is imported directly from Israel into the
customs territory of the United States; and
(C) the sum of—
(i) the cost of value of the materials produced in Israel,
plus
(ii) the direct costs of processing operations performed in
Israel,
is not less than 35 percent of the appraised value of such article
at the time it is entered.
If the cost or value of materials produced in the customs territory of
the United States is included with respect to an article to which this
subsection applies, an amount not to exceed 15 percent of the
appraised value of the article at the time it is entered that is
attributable to such United States cost or value may be applied
toward determining the percentage referred to in subparagraph (C).
(2) No article may be considered to be an eligible Israeli article by
virtue of having merely undergone—
(A) simple combining or packaging operations; or
(B) mere dilution with water or mere dilution with another
substance that does not materially alter the characteristics of
the article.
(b) As used in this section, the phrase "direct costs of processing
operations" includes, but is not limited to—
(1) all actual labor costs involved in the growth, production,
manufacture, or assembly of the specific merchandise, including
fringe benefits, on-the-job training and the cost of engineering,
supervisory, quality control, and similar personnel; and
(2) dies, molds, tooling, and depreciation on machinery and
equipment which are allocable to the specific merchandise.
Such phrase does not include costs which are not directly attributable to the merchandise concerned, or are not costs of manufacturing
the product, such as (A) profit, and (B) general expenses of doing
business which are either not allocable to the specific merchandise
or are not related to the growth, production, manufacture, or assembly of the merchandise, such as administrative salaries, casualty

98 STAT. 3016

PUBLIC LAW 98-573—OCT. 30, 1984

and liability insurance, advertising, and salesmen's salaries, commissions or expenses.
(c) REGULATIONS.—The Secretary of the Treasury, after consultation with the United States Trade Representative, shall prescribe
such regulations as may be necessary to carry out this section.
19 u s e 2112
"°^

Ante, p. 3013.
19 use 2253,
1862.
19 use 2251.

SEC. 403. APPLICATION OF CERTAIN OTHER TRADE LAW PROVISIONS.
(a) SUSPENSION OF DUTY-FREE TREATMENT.—The President may by

proclamation suspend the reduction or elimination of any duty
provided under any trade agreement provision entered into with
Israel under the authority of section 1020t)Xl) of the Trade Act of
1974 with respect to any article and may proclaim a duty rate for
such Eirticle if such action is proclaimed under section 203 of the
Trade Act of 1974 or section 232 of the Trade Expansion Act of 1962.
(b) ITC REPORTS.—In any report by the United States International Trade Commission (hereinafter referred to in this title as the
"Commission") to the President under section 201(dXl) of the Trade
Act of 1974 regarding any article for which a reduction or elimination of any duty is provided under a trade agreement entered into
with Israel under section 102(bXl) of the Trade Act of 1974, the
Commission shall state whether and to what extent its findings and
recommendations apply to such an article when imported from
Israel.
(c) For purposes of subsections (a) and (c) of section 203 of the
Trade Act of 1974, the suspension of the reduction or elimination of
a duty under subsection (a) shall be treated as an increase in duty.
(d) No proclamation which provides solely for a suspension
referred to in subsection (a) with respect to any article shall be made
under subsections (a) and (c) of section 203 of the Trade Act of 1974
unless the Commission, in addition to making an affirmative determination with respect to such article under section 201(b) of the
Trade Act of 1974, determines in the course of its investigation
under that section that the serious injury (or threat thereof substantially caused by imports to the domestic industry producing a
like or directly competitive article results from the reduction or
elimination of any duty provided under any trade agreement provision entered into with Israel under section 102(bXl) of the Trade Act
of 1974.
(eXD Any proclamation issued under section 203 of the Trade Act
of 1974 that is in effect when an agreement with Israel is entered
into under section 1020t)Xl) of the Trade Act of 1974 shall remain in
effect until modified or terminated.
(2) If any article is subject to import relief at the time an agreement is entered into with Israel under section 102(bXl) of the Trade
Act of 1974, the President may reduce or terminate the application
of such import relief to the importation of such article before the
otherwise scheduled date on which such reduction or termination
would occur pursuant to the criteria and procedures of subsections
(h) and (i) of section 203 of the Trade Act of 1974.

19 u s e 2112

SEC. 404. FAST TRACK PROCEDURES FOR PERISHABLE ARTICLES.

"°*®'

(a) If a petition is filed with the Commission under the provisions
of section 201 of the Trade Act of 1974 regarding a perishable
product which is subject to any reduction or elimination of a duty
imposed by the United States under a trade agreement entered into
with Israel under section 1020t)Xl) of the Trade Act of 1974 and
alleges injury from imports of that product, then the petition may

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3017

also be filed with the Secretary of Agriculture with a request that
emergency relief be granted under subsection (c) with respect to
such article.
(b) Within 14 days after the filing of a petition under subsection
(a)(1) if the Secretary of Agriculture has reason to believe that a
perishable product from Israel is being imported into the United
States in such increased quantities as to be a substantial cause
of serious injury, or the threat thereof, to the domestic industry
producing a perishable product like or directly competitive with
the imported product and that emergency action is warranted,
he shall advise the President and recommend that the President
take emergency action; or
(2) the Secretary of Agriculture shall publish a notice of his
determination not to recommend the imposition of emergency
action and so advise the petitioner.
(c) Within 7 days after the President receives a recommendation President of U.S.
from the Secretary of Agriculture to take emergency action under
subsection (b), he shall issue a proclamation withdrawing the reduction or elimination of duty provided to the perishable product under
any trade agreement provision entered into under section 102(b)(1)
of the Trade Act of 1974 or publish a notice of his determination not Ante, p. 3013.
to take emergency action.
(d) The emergency action provided under subsection (c) shall cease
to apply—
(1) upon the proclamation of import relief under section
202(aXl) of the Trade Act of 1974;
19 use 2252.
(2) on the day the President makes a determination under
section 203(b)(2) of such Act not to impose import relief;
19 use 2253.
(3) in the event of a report of the Commission containing a
negative finding, on the day the Commission's report is submitted to the President; or
(4) whenever the President determines that because of
changed circumstances such relief is no longer warranted.
(e) For purposes of this section, the term "perishable product"
means any—
(1) live plant provided for in subpart A of part 6 of schedule 1
of the Tariff Schedules of the United States (19 U.S.C. 1202,
hereinafter referred to as the "TSUS");
(2) vegetable provided for in schedule 1, part 8, of the TSUS;
(3) fresh mushroom provided for in item 144.10 of the TSUS;
(4) edible nut or fruit provided for in schedule 1, part 9, of the
TSUS;
(5) fresh cut flower provided for in items 192.17, 192.18, and
192.21 of the TSUS; and
(6) concentrated citrus fruit provided for in items 165.25 and
165.35 of the TSUS.
(f) No trade agreement entered into with Israel under section
102(b)(1) of the Trade Act of 1974 shall affect fees imposed under
section 22 of the Agricultural Adjustment Act (7 U.S.C. 624).
SEC. 406. CONSTRUCTION OF TITLE.
19 USC 2112
Neither the taking effect of any trade agreement provision
entered into with Israel under section 102(b)(1), nor any proclamation issued to implement any such provision, may affect in any
manner, or to any extent, the application to any Israeli articles of
section 232 of the Trade Expansion Act of 1962, section 337 of title 19 USC 1862.

98 STAT. 3018
19 use 1337,
19 use 2251 et
seq., 2411 et seq.

PUBLIC LAW 98-573—OCT. 30, 1984

v n of the Tariff Act of 1930, chapter 1 of title II and chapter 1 of
*^*^? ^^^ °^ *^® Trade Act of 1974, or any other provision of law under
which relief from injury caused by import competition or by unfair
import trade practices may be sought.

Generalized
SSnces

TITLE V—GENERALIZED SYSTEM OF
PREFERENCES RENEWAL

Renewal Act of
1984.

SECTION 501. SHORT TITLE; STATEMENT OF PURPOSE.

19 use 2101
note.
19 use 2461

(a) This title may be cited as the "Generalized System of Preferences Renewal Act of 1984".
(b) The purpose of this title is to—

not®-

(1) promote t h e development of developing countries, which

often need temporary preferential advantages to compete effectively with industrialized countries;
(2) promote the notion that trade, rather than aid, is a more
effective and cost-efficient way of promoting broad-based sustained economic development;
(3) take advantage of the fact that developing countries provide the fastest growing markets for United States exports and
that foreign exchange earnings from trade with such countries
through the Generalized System of Preferences can further
stimulate United States exports;
(4) allow for the consideration of the fact that there are
significant differences among developing countries with respect
to their general development and international competitiveness;
(5) encourage the providing of increased trade liberalization
measures, thereby setting an example to be emulated by other
industrialized countries;
(6) recognize that a large number of developing countries
must generate sufficient foreign exchange earnings to meet
international debt obligations;
(7) promote the creation of additional opportunities for trade
among the developing countries;
(8) integrate developing countries into the international trading system with its attendant responsibilities in a manner
commensurate with their development;
(9) encourage developing countries—
(A) to eliminate or reduce significant barriers to trade in
goods and services and to investment,
(B) to provide effective means under which foreign nationals may secure, exercise, and enforce exclusive intellectual property rights, and
(C) to afford workers internationally recognized worker
rights; and
(10) address the concerns listed in the preceding paragraphs
in a manner that—
(A) does not adversely affect United States producers and
workers, and
(B) conforms to the international obligations of the
United States under the General Agreement on Tariffs and
TIAS1700.

Trade.
SEC.

502. CONSIDERATION OF A BENEFICIARY DEVELOPING COUNTRY'S
COMPETITIVENESS IN EXTENDING PREFERENCES.

Section 501 of the Trade Act of 1974 (19 U.S.C. 2461) is amended—

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3019

(1) by inserting "through the expansion of their exports"
before the semicolon at the end of paragraph (1);
(2) by striking out "and" at the end of paragraph (2);
(3) by striking out the period at the end of paragraph (3) and
inserting in lieu thereof "; and"; and
(4) by adding at the end thereof the following new paragraph:
"(4) the extent of the beneficiary developing country's competitiveness with respect to eligible articles.".
SEC. 503. AMENDMENTS RELATING TO THE BENEFICIARY DEVELOPING
COUNTRY DESIGNATION CRITERIA.

(a) Section 502(a) of the Trade Act of 1974 (19 U.S.C. 2462(a)) is
amended by adding at the end thereof the following new paragraph:
"(4) For purposes of this title, the term 'internationally recognized
worker rights' includes—
"(A) the right of association;
"(B) the right to organize and bargain collectively;
"(C) a prohibition on the use of any form of forced
or compulsory labor;
"(D) a minimum age for the employment of children; and
"(E) acceptable conditions of work with respect to minimum
weiges, hours of work, and occupational safety and health.".
(b) Section 502(b) of the Trade Act of 1974 (19 U.S.C. 2462(b)) is
amended—
(1) by striking out "Hungary" in the list of countries preceding paragraph (1);
(2) by inserting ", including patents, trademarks, or copyrights" after "control of such property" in paragraph (4) (A) and
(B);
(3) by inserting ", including patents, trademarks, or copyrights" after "control of such property" in paragraph (4)(C);
(4) by striking out "and" at the end of paragraph (6);
(5) by striking out the period at the end of paragraph (7) and
inserting in lieu thereof "; and";
(6) by inserting after paragraph (7) the following new
paragraph:
"(8) if such country has not taken or is not taking steps to
afford internationally recognized worker rights to workers in
the country (including any designated zone in that country).";
and
(7) by striking out "and (7)" in the unnumbered paragraph at
the end of the subsection and inserting in lieu thereof "(7), and
(8)".
(c) Section 502(c) of the Trade Act of 1974 (19 U.S.C. 2462) is
amended—
(1) by striking out "and" at the end of paragraph (3);
(2) by striking out the period at the end of paragraph (4) and
of inserting in lieu thereof the following: "and the extent to
which such country has assured the United States that it will
refrain from engaging in unreasonable export practices;", and
(3) by adding at the end thereof the following new paragraphs:
"(5) the extent to which such country is providing adequate
and effective means under its laws for foreign nationals to
secure, to exercise, and to enforce exclusive rights in intellectual property, including patents, trademarks, and copyrights;
"(6) the extent to which such country has taken action to—

98 STAT. 3020

PUBLIC LAW 98-573—OCT. 30, 1984
"(A) reduce trade distorting investment practices and
policies (including export performance requirements); and
"(B) reduce or eliminate barriers to trade in services; and
"(7) whether or not such country has taken or is taking steps
to afford to workers in that country (including any designated
zone in that country) internationally recognized worker
rights.".

SEC. 504. REGULATIONS; ARTICLES WHICH MAY NOT BE DESIGNATED AS
ELIGIBLE ARTICLES.

(a) Section 503(b) of the Tariff Act of 1930 (19 U.S.C. 2463(b)) is
amended by inserting ", after consulting with the United States
Trade Representative," immediately after "The Secretary of the
Treasury in the last sentence thereof.
(b) Section 503(c)(1)(E) of the Trade Act of 1974 (19 U.S.C.
2463(c)(1)(E)) is amended to read as follows:
"(E) footwear, handbags, luggage, flat goods, work gloves,
and leather wearing apparel which were not eligible articles for purposes of this title on April 1,1984,".
SEC. 505. LIMITATIONS ON PREFERENTIAL TREATMENT.

(a) Section 504(a) of the Trade Act of 1974 (19 U.S.C. 2464) is
amended—
(1) by striking out "The President" and inserting in lieu
thereof "(1) The President"; and
(2) by adding at the end thereof the following new paragraph:
President of U.S.
"(2) The President shall, as necessary, advise the Congress and, by
Report.
no later than January 4, 1988, submit to the Congress a report on
the application of sections 501 and 502(c), and the actions the
President has taken to withdraw, to suspend, or to limit the application of duty-free treatment with respect to any country which has
Ante, p. 3019.
failed to adequately take the actions described in section 502(c).".
(b) Section 504 (c) and (d) of the Trade Act of 1974 (19 U.S.C. 2464
(c) and (d)) a e amended to read as follows:
"(cXl) Subject to paragraphs (2) through (7) and subsection (d),
whenever the President determines that any country—
"(A) has exported (directly or indirectly) to the United States
during a calendar year a quantity of an eligible article having
an appraised value in excess of an amount which bears the
same ratio to $25,000,000 as the gross national product of the
United States for the preceding calendar year (as determined by
the Department of Commerce) bears to the gross national product of the United States for calendar year 1974; or
"(B) has exported (either directly or indirectly) to the United
States a quantity of any eligible article equal to or exceeding 50
percent of the appraised value of the total imports of such
article into the United States during any calendar year;
then, not later than July 1 of the next calendar year, such country
shall not be treated as a beneficiary developing country with respect
to such article.
"(2)(A) Not later than January 4,1987, and periodically therafter,
the President shall conduct a general review of eligible articles
based on the considerations described in section 501 or 502(c).
"(B) If, after any review under subparagraph (A), the President
determines that this subparagraph should apply because a beneficiary developing country has demonstrated a sufficient degree of
competitiveness (relative to other beneficiary developing countries)

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3021

with respect to any eligible article, then paragraph (1) shall
be applied to such country with respect to such article by
substituting—
"(i) '1984' for '1974' in subparagraph (A), and
"(ii) '25 percent' for '50 percent' in subparagraph (B).
"(3)(A) Not earlier than January 4,1987, the President may waive
the application of this subsection with respect to any eligible article
of any beneficiary developing country if, before July 1 of the calendar year beginning after the calendar year for which a determination described in paragraph (1) was made with respect to such
eligible article, the President—
"(i) receives the advice of the International Trade Commission
on whether any industry in the United States is likely to be
adversely affected by such waiver,
"(ii) determines, based on the considerations described in
sections 501 and 502(c) and the advice described in clause (i),
that such waiver is in the national economic interest of the
United States, and
"(iii) publishes the determination described in clause (ii) in
the Federal Register.
"(B) In making any determination under subparagraph (A), the
President shall give great weight to—
"(i) the extent to which the beneficiary developing country
has assured the United States that such country will provide
equitable and reasonable access to the markets and basic commodity resources of such country, and
"(ii) the extent to which such country provides adequate and
effective means under its law for foreign nationals to secure, to
exercise, and to enforce exclusive rights in intellectual property,
including patent, trademark, and copyright rights.
"(C) Any waiver granted pursuant to this paragraph shall remain
in effect until the President determines that such waiver is no
longer warranted due to changed circumstances.
"(D)(i) The President may not exercise the waiver authority provided under subparagraph (A) with respect to a quantity of eligible
articles entered in any calendar year which exceeds an aggregate
value equal to 30 percent of the total value of all articles which
entered duty-free under this title during the preceding calendar
year.
"(ii) The President may not exercise the waiver authority provided
under subparagraph (A) with respect to a quantity of eligible articles entered from any beneficiary developing country during any
calendar year beginning after 1984 which exceeds 15 percent of the
total value of all articles that have entered duty-free under this title
during the preceding calendar year if for the preceding calendar
year such beneficiary developing country—
"(I) had a per capita gross national product (calculated on the
basis of the best available information, including that of the
World Bank) of $5,000 or more; or
"(II) had exported (either directly or indirectly) to the United
States a quantity of articles that was duty-free under this title
that had an appraised value of more than 10 percent of the total
imports of all articles that entered duty-free under this title
during that year.
"(iii) There shall be counted against the limitations imposed under
clauses (i) and (ii) for any calendar year only that quantity of any
eligible article of any country that—

Ante, pp. 3018,
3019.
Federal
Register,
publication.

98 STAT. 3022

Federal
Register,
publication.

Ante, pp. 3018,
^^19-

PUBLIC LAW 98-573—OCT. 30, 1984

"(I) entered duty-free under this title during such calendar
year; and
"(II) is in excess of the quantity of that article that would
have been so entered during such calendar year if the 1974
limitation applied under paragraph (IXA) and the 50 percent
limitation applied under paragraph (IXB).
"(4) Except in any case to which paragraph (2XB) applies, the
President may waive the application of this subsection if, before
j ^ j y j ^f ^j^g calendar year beginning after the calendar year for
which a determination described in paragraph (1) was made, the
President determines and publishes in the Federal Register that,
with respect to such country—
"(A) there has been an historical preferential trade relationship between the United States and such country,
' (B) there is a treaty or trade agreement in force covering
economic relations between such country and the United States,
and
"(C) such country does not discriminate against, or impose
unjustifiable or unreasonable barriers to, United States
commerce.
"(5) A country which is no longer treated as a beneficiary developing country with respect to an eligible article by reason of this
subsection may be redesignated a beneficiary developing country
with respnect to such article, subject to the provisions of sections 501
and 502, if imports of such article from such country did not exceed
the limitations in paragraph (1) (after application of paragraph (2))
during the preceding calendar year.
"(6XA) This subsection shall not apply to any beneficiary developing country which the President determines, based on the considerations described in sections 501 and 502(c), to be a least-developed
beneficiary developing country.
"(B) The President shall—
"(i) make a determination under subparagraph (A) with
respect to each beneficiary developing country before July 4,
1985, and periodically thereafter, and
"(ii) notify the Congress at least 60 days before any such
determination becomes final.
"(7) For purposes of this subsection, the term 'country' does not
include an association of countries which is treated as one country
under section 502(aX3), but does include a country which is a
member of any such association.
"(dXD Subsection (cXlXB) (after application of subsection (cX2))
shall not apply with respect to any eligible article if a like or
directly competitive article is not produced in the United States on
January 3,1985.
"(2) The President may disregard subsection (cXl)(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
$5,000,000 as the gross national product of the United States for that
calendar year (as determined by the Department of C!ommerce)
bears to the gross national product of the United States for calendar
year 1979.".
(c) Section 504 (19 U.S.C. 2464) is amended by adding at the end
thereof the following new subsection:
"(fXD If the President determines that the per capita gross
national product (calculated on the basis of the best available mfor-

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3023

mation, including that of the World Bank) of any beneficiary developing country for any calendar year (hereafter in this subsection
referred to as the 'determination year') after 1984, exceeds the
applicable limit for the determination year—
"(A) subsection (cXlXB) shall be applied for the 2-year period
beginning on July 1 of the calendar year succeeding the determination year by substituting '25 percent' for '50 percent', and
"(B) such country shall not be treated as a beneficiary developing country under this title after the close of such 2-year
period.
"(2XA) For purposes of this subsection, the term 'applicable limit'
means the sum of—
"(i) $8,500, plus
"(ii) 50 percent of the amount determined under subparagraph (B) for the determination year.
"(B) The amount determined under this subparagraph for the
determination year is an amount equal to—
"(i) $8,500, multiplied by
"(ii) the percentage determined by dividing—
"(I) the excess, if any, of the gross national product of the
United States (as determined by the Secretary of Commerce) for the determination year over the gross national
product of the United States for 1984, by
"(II) the gross national product for 1984.".
SEC. 506. EXTENSION OF THE GENERALIZED SYSTEM OF PREFERENCES
AND REPORTS.

(a) Section 505 of the Trade Act of 1974 (19 U.S.C. 2465) is
amended to read as follows:
"SEC. 505. TERMINATION OF DUTY-FREE TREATMENT AND REPORTS.

"(a) No duty-free treatment provided under this title shall remain
in effect after July 4,1993.
"(b) On or before January 4, 1990, the President shall submit to Reports.
the Congress a full and complete report regarding the operation of
this title.
"(c) The President shall submit an annual report to the C!!ongress
on the status of internationally recognized worker rights within
each beneficiary developing country."
(b) CONFORMING AMENDMENT.—'The table of contents of the Trade
Act of 1974 is amended by striking out the item relating to section
505 and inserting in lieu thereof the following:
"Sec. 505. Termination of duty-free treatment and reports.".
SEC. 507. AGRICULTURAL EXPORTS OF BENEFICIARY DEVELOPING COUNTRIES.

(a) Title V of the Trade Act of 1974 (19 U.S.C. 2461 et seq.) is
further amended by adding at the end thereof the following new
section:
"SEC. 506. AGRICULTURAL EXPORTS OF BENEFICIARY DEVELOPING
COUNTRIES.

"The appropriate agencies of the United States shall assist beneficiary developing countries to develop and implement measures
designed to assure that the agricultural sectors of their economies
are not directed to export markets to the detriment of the production of foodstuffs for their citizenry."

19 USC 2466.

98 STAT. 3024

PUBLIC LAW 98-573—OCT. 30, 1984

(b) The table of contents of such Act of 1974 is amended by adding
after the item relating to item 505 the following:
"Sec. 506. Agricultural exports of beneficiary developing countries.".
19 u s e 2461

SEC. 508. EFFECTIVE DATE.

The amendments made by this title shall take effect on January 4,
1985.

TITLE VI—TRADE LAW REFORM
SEC. 601. REFERENCE.

Except as otherwise expressly provided, whenever in this title an
amendment or repeal is expressed in terms of an amendment to, or
repeal of, a title, subtitle, part, section, or other provision, the
reference shall be considered to be made to a title, subtitle, part,
section, or other provision of the Tariff Act of 1930 (19 U.S.C 1202 et
seq.).
SEC. 602. SALES FOR IMPORTATION.

19 use I67id.

Infra.

(a)(1) Section 701(a) (19 U.S.C. 1671(a)) is amended—
(A) by inserting ", or sold (or likely to be sold) for importation," after "imported" in paragraph (1);
(B) by inserting "or by reason of sales (or the likelihood of
sales) of that merchandise for importation" immediately after
"by reason of imports of that merchandise" in paragraph (2);
and
(C) by adding at the end thereof the following new sentence:
"For purposes of this subsection and section 7050t>)(l), a reference to the sale of merchandise includes the entering into of any
leasing arrangement regarding the merchandise that is equivalent to the sale of the merchandise.".
(2) Section 705(b)(1) (19 U.S.C. 1671(b)(1)) is amended by inserting
", or sales (or the likelihood of sales) for importation," immediately
after "by reason of imports".
(b) Section 731 (19 U.S.C. 1673) is amended—
(1) by inserting "or by reason of sales (or the likelihood of
sales) of that merchandise for importation" immediately after
"by reason of imports of that merchandise" in paragraph (2),
and
(2) by adding at the end thereof the following new sentence:
"For purposes of this section and section 735(b)(1), a reference to
the sale of foreign merchandise includes the entering into of
any leasing arrangement regarding the merchandise that is
equivalent to the sale of the merchandise.".
(c) Section 735(b)(1) (19 U.S.C. 1673d(b)(l)) is amended by adding
", or sales (or the likelihood of sales) for importation," after "by
reason of imports".
SEC. 603. WAIVER OF VERIFICATION.

Section 703(b) (19 U.S.C. 1671b(b)) is amended by adding at the end
thereof the following new paragraph:
"(3) PRELIMINARY DETERMINATION UNDER WAIVER OF VERIFICA-

TION.—Within 55 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
received during the first 50 days of the investigation, and, if

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3025

there appears to be sufficient information available upon which
the 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, Post, p. 3038.
Sundays, or legal public holidays) after such disclosure, the
petitioner and each party which is an interested party described
in subparagraph (C), (D), (E), or (F) of section 771(9) to whom Post, p. 3033.
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 £igreement that it
is willing to have a 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), (E), or (F) 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
on an expedited basis on the basis of the record established
during the first 50 days after the investigation was initiated.".
SEC. 604. TERMINATION OR SUSPENSION OF INVESTIGATION.
(a) Section 704 (19 U.S.C. 1671c) is amended—
(1) by amending subsection (a) to read as follows:
"(a) TERMINATION
PETITION.—

OF INVESTIGATION

UPON

WITHDRAWAL OF

"(1) I N GENERAL.—Except as provided in paragraphs (2) and
(3), 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 or by the administering authority if
the investigation was initiated under section 702(a).
19 USC I67ia.
"(2)
SPECIAL
AGREEMENTS.—

RULES

FOR

QUANTITATIVE

RESTRICTION

"(A) IN GENERAL.—Subject to subparagraphs (B) and (C),
the administering authority may not terminate an investigation under paragraph (1) by accepting, with the government of the country in which the subsidy practice is alleged
to occur, an understanding or other kind of agreement to
limit the volume of imports into the United States of the
merchandise that is subject to the investigation unless the
administering authority is satisfied that termination on the
basis of that agreement is in the public interest.
"(B) PuBUC INTEREST FACTORS.—In making a decision
under subparagraph (A) regarding the public interest, the
administering authority shall take into account—
"(i) whether, b£ised upon the relative impact on consumer prices and the availability of supplies of the
merchandise, the agreement would have a greater adverse impact on United States consumers than the
imposition of countervailing duties;
"(ii) the relative impact on the international economic interests of the United States; and
"(iii) the relative impact on the competitiveness of
the domestic industry producing the like merchandise.

98 STAT. 3026

PUBLIC LAW 98-573—OCT. 30, 1984
including any such impact on emplojmient and investment in that industry.
"(C) PRIOR CONSULTATIONS.—Before making a decision

Ante, p. 3024.

pose, p. 3033.

under subparagraph (A) regarding the public interest, the
administering authority shall, to the extent practicable,
consult with—
"(i) potentially affected consuming industries; and
"(ii) potentially affected producers and workers in
the domestic industry producing the like merchandise,
including producers and workers not psirty to the
investigation.
"(3) LIMITATION ON TERMINATION BY COMMISSION.—The Commission may not terminate an investigation under paragraph (1)
before a preliminary determination is made by the administering authority under section 703(b).";
(2) by amending subsection (d)—
(A) by ad(ting a t the end of paragraph (1) the following:
"In appljdng subparagraph (A) with respect to any quantitative
restriction agreement under subsection (c), the administering
authority shall take into account, in addition to such other
factors as are considered necessary or appropriate, the factors
set forth in subsection (aX2XB) (i), (ii), and (iii) as they apply to
the proposed suspension and agreement, after consulting with
the appropriate consuming industries, producers, and workers
referred to in subsection (aX2XC) (i) and (ii).".
(B) by striking out paragraph (2), and
(C) by redesignating paragraph (3) as paragraph (2);
(3) by amending subsection (eX3), by striking out "all parties
to the investigation" and inserting in lieu thereof "all interested parties described in section 771(9)";
(4) by amending subsection (iXl)—
(A) by striking out "and" at the end of subparagraph (C),
(B) by redesignating subparagraph (D) as subparagraph
(E), and
(C) by inserting immediately after subparagraph (C) the
following new subparagraph:
"(D) if it considers the violation to be international, notify the
Commissioner of Customs who shall take appropriate action
under paragraph (2), and"; and
(5) by adding at the end thereof the following new subsection:
"(k) TERMINATION OF INVESTIGATIONS INITIATED BY ADMINISTERING

19 use 1671a.

AuTHORTTY.—The administering authority may terminate any investigation initiated by the administering authority under section
702(a) after providing notice of such termination to all parties to the
investigation.",
(b) Section 734 (19 U.S.C. 1673c) is amended—
(1) by amending subsection (a) to read as follows:
"(a) TERMINATION OF INVESTIGATION UPON
PETITION.—

Post, p. 3030.

WITHDRAWAL OF

"(1) I N GENERAL.—Except as provided in parsigraphs (2) and
(3), 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 or by the administering authority if
the investigation was initiated under section 732(a).
"(2)
SPECIAL
AGREEMENTS.—

RULES

FOR

QUANTITATIVE

RESTRICTION

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3027

"(A) IN GENERAL.—Subject to subparagraphs (B) and (C),
the administering authority may not terminate an investigation under paragraph (1) by accepting an understanding
or other kind of agreement to limit the volume of imports
into the United States of the merchandise that is subject to
the investigation unless the administering authority is satisfied that termination on the basis of that agreement is in
the public interest.
"(B) PuBuc INTEREST FACTORS.—In making a decision
under subparagraph (A) regarding the public interest the
administering authority shall take into account—
"(i) whether, based upon the relative impact on consumer prices and the availability of supplies of the
merchandise, the agreement would have a greater adverse impact on United States consumers than the
imposition of antidumping duties;
"(ii) the relative impact on the international economic interests of the United States; and
"(iii) the relative impact on the competitiveness of
the domestic industry producing the like merchandise,
including any such impact on employment and investment in that industry.
"(C) PRIOR CONSULTATIONS.—Before making a decision
under subparagraph (A) regarding the public interest, the
administering authority shall, to the extent practicable,
consult with—
"(i) potentially affected consuming industries; and
"(ii) potentially affected producers and workers in
the domestic industry producing the like merchandise,
including producers and workers not party to the
investigation.
"(3) LIMITATION ON TERMINATION BY COMMISSION.—The Commission may not terminate an investigation under paragraph (1)
before a preliminary determination is made by the administering authority under section 733(b).";
19 use 1673b.
(2) by amending subsection (d) to read as follows:
"(d) ADDITIONAL RULES AND CONDITIONS.—The administering authority may not accept an agreement under subsection (b) or (c)
unless—
"(1) it is satisfied that suspension of the investigation is in the
public interest, and
"(2) effective monitoring of the agreement by the United
States is practicable.";
(3) by amending subsection (e)(3) by striking out "all parties to
the investigation" and inserting in lieii thereof "all interested
parties described in section 771(9)";
Post, p. 3033.
(4) by amending subsection (iXl)—
(A) by striking out "and" at the end of subparagraph (C),
(B) by redesignating subparagraph (D) as subparagraph
(E), and
(C) by inserting immediately after subparagraph (C) the
following new subparagraph:
"(D) if it considers the violation to be intentional, notify the
Commissioner of Customs who shall take appropriate action
under paragraph (2), and"; and
(5) by adding at the end thereof the following new subsection:

98 STAT. 3028

PUBLIC LAW 98-573—OCT. 30, 1984
"(k) TERMINATION OF INVESTIGATION INITIATED BY ADMINISTERING

Post, p. 3030.

AUTHORITY.—The administering authority may terminate any investigation initiated by the administering authority under section
732(a) after providing notice of such termination to all parties to the
investigation.".
SEC. 605. FINAL DETERMINATION OF CRITICAL CIRCUMSTANCES.

19 use 1671b.

(a)(1) Section 705(a)(2) (19 U.S.C. 1671d(aX2)) is amended by adding
at the end thereof the following new sentence: "Such findings may
be affirmative even though the preliminary determination under
section 703(e)(1) was negative.".
(2) Section 705(c) is amended by adding at the end thereof the
following new paragraph:
"(4) EFFECT OF AFFIRMATIVE DETERMINATION UNDER SUBSEC-

Ante, p. 3024.

19 use 1673b.

TION (a)(2).—If the determination of the administering authority under subsection (aX2) is affirmative, then the administering
authority shall—
"(A) in cases where the preliminary determinations by
the administering authority under sections 7030)) and
703(e)(1) were both affirmative, continue the retroactive
suspension of liquidation and the posting of a cash deposit,
bond, or other security previously ordered under section
703(e)(2);
"(B) in cases where the preliminary determination by the
administering authority under section 703(b) was affirmative, but the preliminary determination under section
703(e)(1) was negative, shall modify any suspension of liquidation and security requirement previously ordered under
section 703(d) 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; or
"(C) in cases where the preliminary determination by the
administering authority under section 703(b) was negative,
shall apply any suspension of liquidation and security requirement ordered under subsection 705(c)(lXB) 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 is
first ordered.".
(3) Section 705(cX3)(A) is amended by inserting "paragraph (4) or"
after "under".
(bXD Section 735(aX3) (19 U.S.C. 1673d(a)(3)) is amended by adding
at the end thereof the following new sentence: "Such findings may
be affirmative even though the preliminary determination under
section 733(eXl) was negative.".
(2) Section 735(c) is amended by adding at the end thereof the
following new paragraph:
"(4) EFFECT OF AFFIRMATIVE DETERMINATION UNDER SUBSEC-

TION (aXs).—If the determination of the administering authority under subsection (aX3) is affirmative, then the administering
authority shall—
"(A) in cases where the preliminary determinations by
the administering authority under sections 733(b) and
733(eXl) were both affirmative, continue the retroactive
suspension of liquidation and the posting of a cash deposit.

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3029

bond, or other security previously ordered under section
733(eX2);
"(B) in cases where the preliminary determination by the
administering authority under section 733(b) was affirmative, but the preliminary determination under section
733(eXl) was negative, shall modify any suspension of liquidation and security requirement previously ordered under
section 733(d) 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; or
"(C) in cases where the preliminary determination by the
administering authority under section 733(b) was negative,
shall apply any suspension of liquidation and security requirement ordered under subsection 735(c)(1)(B) 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 is
first ordered.".
(3) Section 735(c)(3)(A) is amended by inserting "paragraph (4) or"
after "under".

19 use I673b.

19 use I673d.

SEC. 606. SIMULTANEOUS INVESTIGATIONS.

Section 705(a)(1) (19 U.S.C. 1671d(aXl)) is amended to read as
follows:
"(1) IN GENERAL.—Within 75 days after the date of the 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;
except that when an investigation under this subtitle is initiated simultaneously with an investigation under subtitle B,
which involves imports of the same class or kind of merchandise
from the same or other countries, the administering authority,
if requested by the petitioner, shall extend the date of the final
determination under this paragraph to the date of the final
determination of the administering authority in such investigation initiated under subtitle B.".
SEC. 607. COUNTERVAILING DUTIES APPLY ON COUNTRY-WIDE BASIS.

Section 706(a) (19 U.S.C. 1671e(a)) is amended—
(1) by redesignating paragraphs (2) and (3) as paragraphs (3)
and (4), respectively; and
(2) by adding after paragraph (1) the following new paragraph:
"(2) shall presumptively apply to all merchandise of such
class or kind exported from the country investigated, except
that if—
"(A) the administering authority determines there is a
significant differential between companies receiving subsidy benefits, or
"(B) a State-owned enterprise is involved,
the order may provide for differing countervailing duties,".
SEC. 608. CONDITIONAL PAYMENT OF COUNTERVAILING DUTIES.

Subtitle A of title VII is amended by adding at the end thereof the
following new section:

Ante, p. 3024.

19 use 1673.

98 STAT. 3030
19 u s e 1671h.

PUBLIC LAW 98-573—OCT. 30, 1984

"SEC. 709. CONDITIONAL PAYMENT OF COUNTERVAILING DUTY.

"(a) IN GENERAL.—For all entries, or withdrawals from warehouse, for consumption of merchandise subject to a countervailing
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 requirement of subsection (b) and deposits
with the appropriate customs officer an estimated countervailing
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 ascertaining any countervailing duty to be
imposed under this subtitle,
"(2) maintain and furnish to the customs officer such records
concerning such merchandise as the administering authority,
by regulation, requires, and
"(3) pay, or agree to pay on demand, to the customs officer the
amount of countervailing duty imposed under this subtitle on
that merchandise.".
SEC. 609. INITIATION OF ANTIDUMPING DUTY INVESTIGATIONS.

Section 732(a) (19 U.S.C. 1673a(a)) is amended to read as follows:
"(a) INITIATION BY ADMINISTERING AUTHORITY.—

19 use 1673.

"(1) I N GENERAL.—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.
"(2) CASES INVOLVING PERSISTENT DUMPING.—

"(A) MONITORING.—The administering authority may establish a monitoring program with respect to imports of a
class or kind of merchandise from any additional supplier
country for a period not to exceed one year if—
"(i) more than one antidumping order is in effect
with respect to that class or kind of merchandise;
"(ii) in the judgment of the administering authority
there is reason to believe or suspect an extraordinary
pattern of persistent injurious dumping from one or
more additional supplier countries; and
"(iii) in the judgment of the administering authority
this extraordinary pattern is causing a serious commercial problem for the domestic industry.
"(B) If during the period of monitoring referred to in
subparagraph (A), the administering authority determines
that there is sufficient information to commence a formal
investigation under this subsection regarding an additional
supplier country, the administering authority shall immediately commence such an investigation.
"(C) DEFINITION.—For purposes of this paragraph, the
term 'additional supplier country' means a country regarding which no antidumping investigation is currently pending, and no antidumping duty order is currently in effect,
with respect to imports of the class or kind of merchandise
covered by subparagraph (A).

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3031

"(D) EXPEDITIOUS ACTION.—The administering authority

and the Commission, to the extent practicable, shall expedite proceedings under this subtitle undertaken as a result
of a formal investigation commenced under subparagraph
(B)."
SEC. 610. DUTIES OF CUSTOMS OFFICERS.

(a) Subtitle B of title VII is amended by striking out section 789.
(b) The table of contents for such subtitle is amended by striking
out
"Sec. 739. Duties of customs officers.".
SEC. 611. REVIEWS AND DETERMINATIONS.

(a) Subtitle C (19 U.S.C. 1675) is amended—
(1) by amending the subtitle heading to read as follows:

Repeal.
19 use I673h.

"Subtitle C—Reviews; Other Actions Regarding
Agreements
"CHAPTER 1—REVIEW OF AMOUNT OF DUTY AND AGREEMENTS OTHER THAN QUANTITATIVE RESTRICTION
AGREEMENTS";
(2) by amending section 751—
19 usc 1675.
(A) by inserting "if a request for such a review has been
received and" immediately before "after publication of
notice" in that part of paragraph (1) of subsection (a) that
precedes subparagraph (A); and
(B) by amending subsection (b)(1)—
(i) by striking out "704 or 734" and inserting in lieu
thereof "704 (other than a quantitative restriction
agreement described in subsection (a)(2) or (c)(3)) or 734
(other than a quantitative restriction agreement described in subsection (a)(2))",
(ii) by striking out ", or 735(b)," and inserting in lieu
thereof", 735(b), 762(a)(1), or 762(a)(2),", and
(iii) by adding at the end of subsection (b)(1) the
following: "During an investigation by the Commission,
the party seeking revocation of an antidumping order
shall have the burden of persuasion with respect to
whether there are changed circumstances sufficient to
warrant revocation of the antidumping order."; and
(3) by adding "The administering authority shall not revoke,
in whole or in part, a countervailing duty order or terminate a
suspended investigation on the basis of any export taxes, duties,
or other charges levied on the export of merchandise to the
United States specifically intended to offset the subsidy received." after the first sentence of subsection (c);
(4) by adding at the end thereof the following new chapter:
"CHAPTER 2—CONSULTATIONS AND DETERMINATIONS
REGARDING QUANTITATIVE RESTRICTION AGREEMENTS
"SEC. 761. REQUIRED CONSULTATIONS.
19 USC 1676.
"(a) AGREEMENTS IN RESPONSE TO SuBsroiES.—Within 90 days after President of U.S.
the administering authority accepts a quantitative restriction agree-

98 STAT. 3032
Ante, p. 3025.

PUBLIC LAW 98-573—OCT. 30, 1984

ment under section 704 (aX2) or (cX3), the President shall enter into
consultations with the government that is party to the agreement
for purposes of—
"(1) eliminating the subsidy completely, or
"(2) reducing the net subsidy to a level that eliminates completely the injurious effect of exports to the United States of the
merchandise.
"(b) MODIFICATION OF AGREEMENTS ON BASIS OF CONSULTATIONS.—

At the direction of the President, the administering authority shall
modify a quantitative restriction agreement as a result of consultations entered into under subsection (a).
"(c)

SPECIAL RULE REGARDING AGREEMENTS UNDER SECTION

704(cX3).—This chapter shall cease to apply to a quantitative restriction agreement described in section 704(cX3) at such time as that
agreement ceases to have force and effect under section 704(f) or
violation is found under section 704(i).
19 u s e 1676a.

Ante, pp. 3024,
3028, 3029.
Post, p. 3040.
Ante, p. 3029.

pose, p. 3037.

"SEC. 762. REQUIRED DETERMINATIONS.

"(a) IN GENERAL.—Before the expiration date, if any, of a quantitative restriction agreement accepted under section 704(a)(2) or
704(cX3) (if suspension of the related investigation is still in effect)—
"(1) the administering authority shall, at the direction of the
President, initiate a proceeding to determine whether any subsidy is being provided with respect to the merchandise subject to
the agreement and, if being so provided, the net subsidy; and
"(2) if the administering authority initiates a proceeding
under paragraph (1), the Commission shall determine whether
imports of the merchandise of the kind subject to the agreement
will, upon termination of the agreement, materially injure, or
threaten with material injury, an industry in the United States
or materially retard the establishment of such an industry.
"(b) DETERMINATIONS.—The determinations required to be made
by the administering authority and the Commission under subsection (a) shall be made under such procedures as the administering
authority and the Commission, respectively, shall by regulation
prescribe, and shall be treated as final determinations made under
section 705 for purposes of judicial review under section 516A. If the
determinations by each are affirmative, the administering authority
shall—
"(1) issue a countervailing duty order under section 706 effective with respect to merchandise entered on and after the date
on which the agreement terminates; and
"(2) order the suspension of liquidation of all entries of merchandise subject to the order which are entered, or withdrawn
from warehouse for consumption, on or after the date of publication of the order in the Federal Register.
"(c) HEARINGS.—The determination proceedings required to be
prescribed under subsection Ob) shall provide that the administering
authority and the Commission must, upon the request of any interested party, hold a hearing in accordance with section 774 on the
issues involved.".
(b) The table of contents for subtitle C of title VII is amended to
read as follows:

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3033

"Subtitle C—Reviews; Other Actions Regarding Agreements
"Chapter 1—REVIEW OF AMOUNT OF DUTY AND AGREEMENTS OTHER
THAN QUANTITATIVE RESTRICTION AGREEMENTS
"Sec. 751. Administrative review of determinations.
"Chapter 2—CONSULTATIONS AND DETERMINATIONS REGARDING
QUANTITATIVE RESTRICTION AGREEMENTS
"Sec. 761. Required consultations
"Sec. 762. Required determinations.".

(c) 104(bX2) of the Trade Agreements Act of 1979 (19 U.S.C. 1671,
note) is amended by adding at the end thereof the following new
sentence: "A negative determination by the Commission under this
paragraph shall not be based, in whole or in part, on any export
taxes, duties, or other charges levied on the export of merchandise
to the United States specifically intended to offset the subsidy
received.".
SEC. 612. DEFINITIONS AND SPECIAL RULES.

(a) Section 771 (19 U.S.C. 1677) is amended as follows:
(1) Paragraph (4)(A) is amended bv inserting before the period
at the end thereof the following: ; except that in the case of
wine and grape products subject to investigation under this
title, the term also means the domestic producers of the principal raw agricultural product (determined on either a volume or
value basis) which is included in the like domestic product, if
those producers allege material injury, or threat of material
injury, as a result of imports of such wine and grape products".
(2) Paragraph (7) is amended—
(A) by inserting the following new clause at the end of
subparagraph (C):
"(iv) CUMULATION.—For purposes of clauses (i) and
(ii), the Commission shall cumulatively assess the
volume and effect of imports from two or more countries of like products subject to investigation if such
imports compete with each other and with like products of the domestic industry in the United States
market."; and
(B) by inserting after subparagraph (E) the following new
subparagraph:
"(F) THREAT OF MATERIAL INJURY.—

"(i) IN GENERAL.—In determining whether an industry in the United States is threatened with material
injury by reason of imports (or sales for importation) of
any merchandise, the Commission shall consider,
among other relevant economic factors—
"(I) If a subsidy is involved, 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),
"(II) any increase in production capacity or existing unused capacity in the exporting country likely
to result in a significant increase in imports of the
merchandise to the United States,
"(III) any rapid increase in United States market
penetration and the likelihood that the penetration will increase to an injurious level,

98 STAT. 3034

19 use 1671,
l^"^^167^^ ^^^^^'
®'

PUBLIC LAW 98-573—OCT. 30, 1984
"(IV) the probability that imports of the merchandise will enter the United States at prices that
will have a depressing or suppressing effect on
domestic prices of the merchandise,
"(V) any substantial increase in inventories of
the merchandise in the United States,
"(VI) the presence of underutilized capacity for
producing the merchandise in the exporting country,
"(VII) any other demonstrable adverse trends
that indicate the probability that the importation
(or sale for importation) of the merchandise
(whether or not it is actually being imported at the
time) will be the cause of actual injury, and
"(VIII) the potential for product-shifting if production facilities owned or controlled by the foreign manufacturers, which can be used to produce
products subject to investigation(s) under section
701 or 731 or to find orders under section 706 or
736, are also used to produce the merchandise
under investigation.
"(ii) BASIS FOR DETERMINATION.—Any determination

by the Commission under this title that an industry in
the United States is threatened with material injury
shall be made on the basis of evidence that the threat
of material injury is real and that actual injury is
imminent. Such a determination may not be made on
the basis of mere conjecture or supposition."
(3) Paragraph (9) is amended—
(A) by striking out "and" at the end of subparagraph (D);
(B) by striking out the period at the end of subparagraph
(E) and inserting in lieu thereof ", and"; and
(C) by adding at the end thereof the following new subparagraph:
"(F) an association, a majority of whose members is composed of interested parties described in subparagraph (C),
(D), or (E) with respect to a like product.".
(4) Paragraph (14) is amended by striking out "at wholesale"
and inserting in lieu thereof "in commercial quantities".
(5) Paragraph (17) is amended by striking out "wholesale
quantities each place it appears in the heading and the text
and inserting in lieu thereof commercial quantities".
(b)(1) Section 514(a) (19 U.S.C. 1514(a)) is amended by striking out
"771(9) (C), (D), and (E) of this Act." and inserting in lieu thereof
"771(9) (C), (D), (E), and (F) of this Act.".
(2) Sections 704 (g)(2) and (hXD and 734 (g)(2) and (h)(1) (19 U.S.C.
1671c (g)(2) and (h)(1) and 1673c (g)(2) and (h)(1)) are each amended by
striking out "(C), (D), or (E)" and inserting in lieu thereof "(C), (D),
(E), and (F)".
(3) Section 2631(kX2) of title 28, United States Code, is amended—
(A) by striking out "and" at the end of subparagraph (C),
(B) by striking out the period at the end of subparagraph (D),
and inserting in lieu thereof ", and", and
(C) by adding at the end thereof the following new
subparagraph:
"(E) an association composed of members who represent parties-at-interest described in subparagraph (B), (C), or (D).".

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3035

SEC. 613. UPSTREAM SUBSIDIES.

(a) Subtitle D of title VII is amended by adding after section 771
the following new section:
"SEC. 771A. UPSTREAM SUBSIDIES.

"(a) DEFINITION.—The term 'upstream subsidy' means any subsidy
described in section 771(5)(B) (i), (ii), or (iii) by the government of a
country that—
(1) is paid or bestowed by that government with respect to a
product (hereafter referred to £is an 'input product') that is used
in the manufacture or production in that country of merchandise which is the subject of a countervailing duty proceeding;
"(2) in the judgment of the administering authority bestows a
competitive benefit on the merchandise; and
"(3) has a significant effect on the cost of manufacturing or
producing the merchandise.
In applying this subsection, an association of two or more foreign
countries, political subdivisions, dependent territories, or possessions of foreign countries organized into a customs union outside the
United States shall be treated as being one country if the subsidy is
provided by the customs union.

19 USC 1677-1.

19 use 1677.

"(b) DETERMINATION OF COMPETITIVE BENEFIT.—

"(1) IN GENERAL.—Except as provided in paragraph (2), the
administering authority shall decide that a competitive benefit
has been bestowed when the price for the input product referred
to in subsection (a)(1) for such use is lower than the price that
the manufacturer or producer of merchandise which is the
subject of a countervailing duty proceeding would otherwise pay
for the product in obtaining it from another seller in an armslength transaction.
"(2) ADJUSTMENTS.—If the administering authority has determined in a previous proceeding that a subsidy is paid or bestowed on the input product that is used for comparison under
paragraph (1), the administering authority may (A) where appropriate, adjust the price that the manufacturer or producer of
merchandise which is the subject of such proceeding would
otherwise pay for the product to reflect the effects of the
subsidy, or (B) select in lieu of that price a price from another
source.
"(c) INCLUSION OF AMOUNT OF SUBSIDY.—If the administering
authority decides, during the course of a countervailing duty proceeding that an upstream subsidy is being or has been paid or
bestowed regarding the merchandise under investigation, the administering authority shall include in the amount of any countervailing duty imposed on the merchandise an amount equal to the
amount of the competitive benefit referred to in subparagraph (1)(B),
except that in no event shall the amount be greater than the
amount of subsidization determined with respect to the upstream
product.".
(b) Section 701 of the Tariff Act of 1930 (19 U.S.C. 1671) is further
amended by adding at the end thereof the following new subsection:
"(g) Whenever the administering authority has reasonable
grounds to believe or suspect that an upstream subsidy, as defined
in section 771A(a)(l), is being paid or bestowed, the administering Supra.
authority shall investigate whether an upstream subsidy has in fact
been paid or bestowed, and if so, shall include the amount of the
upstream subsidy as provided in section 771A(a)(3).",

98 STAT. 3036

PUBLIC LAW 98-573—OCT. 30, 1984

(c) Section 703 of the Tariff Act of 1930 (19 U.S.C. 1617b) is further
amended by adding at the end thereof the following new subsection:
"(h) TIME PERIOD WHERE UPSTREAM SUBSIDIZATION INVOLVED.—

Ante, p. 3024.

19 u s e 1671a.

Ante, pp. 3029,
3028.

Ante, p. 3031.

Ante, p. 3029.

"(1) IN GENERAL.—Whenever the administering authority concludes prior to a preliminary determination under section
703(b), that there is a reasonable basis to believe or suspect that
an upstream subsidy is being bestowed, the time period within
which a preliminary determination must be made shall be
extended to 250 days after the filing of a petition under section
702(b) or commencement of an investigation under section
702(a) (310 days in cases declared extraordinarily complicated
under section 703(c)), if the administering authority concludes
that such additional time is necessary to make the required
determination concerning upstream subsidization.
"(2) EXCEPTIONS.—Whenever the administering authority concludes, after a preliminary determination under section 703(b),
that there is a reasonable basis to believe or suspect that an
upstream subsidy is being bestowed—
"(A) in cases in which the preliminary determination was
negative, the time period within which a final determination must be made shall be extended to 165 days under
section 705(aXl) or 225 days under section 705(a)(2), as
appropriate; or
"(B) in cases in which the preliminary determination is
affirmative, the determination concerning upstream
subsidization—
"(i) need not be made until the conclusion of the first
annual review under section 751 of any eventual Countervailing Duty Order, or, at the option of the petitioner, or
"(ii) will be made in the investigation and the time
period within which a final determination must be
made shall be extended to 165 days under section
705(aX2), as appropriate, except that the suspension of
liquidation ordered in the preliminary determination
shall terminate at the end of 120 days from the date of
publication of that determination and not be resumed
unless and until the publication of a Countervailing
Duty Order under section 706(a).
There may be an extension of time for the making of a final
determination under this subsection only if the administering authority determines that such additional time is necessary to make
the required determination concerning upstream subsidization.",
(b) The table of contents for title VII is amended by inserting after
the entry for section 771 the following:
"Sec. 771A. Upstream subsidies.".
SEC. 614. RESELLER'S PRICE TAKEN INTO ACCOUNT IN DETERMINING
PURCHASE PRICE.

Section 772(b) (19 U.S.C. 1677a(b)) is amended by inserting "a
reseller or" after "date of importation, from".
SEC. 615. FOREIGN MARKET VALUE.

Section 773 (19 U.S.C. 1677b) is amended—
(1) by striking out "time of exportation of such merchandise
to the United States" and inserting in lieu thereof "time such

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3037

merchandise is first sold within the United States by the person
for whom (or for whose account) the merchandise is imported to
any other person who is not described in subsection (e)(3) with
respect to such person" in subsection (a)(1);
(2) by striking out "wholesale quantities" each place it appears in the heading and the text and inserting in lieu thereof
"commercial quantities"; and
(3) by adding at the end thereof the following new subsection:
"(g) EXPORTATION FROM AN INTERMEDIATE COUNTRY.—If—

"(1) a reseller purchases the merchandise from the manufacturer or producer of the merchandise,
"(2) the manufacturer or producer of the merchandise does
not know (at the time of the sale to such reseller) the country to
which such reseller intends to export the merchandise,
"(3) the merchandise is exported by, or on behalf of, such
reseller to a country other than the United States,
"(4) the merchandise enters the commerce of such country but
is not substantially transformed in such country, and
"(5) the merchandise is subsequently exported to the United
States,
such country shall be treated, for purposes of this section, as the
country from which the merchandise was exported.".
SEC. 616. HEARINGS.

Section 774(a) (19 U.S.C. 1677c(a)) is amended to read as follows:
"(a) INVESTIGATION HEARINGS.—

"(1) IN GENERAL.—Except as provided in paragraph (2), 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.
Ante, pp. 3024,
"(2) EXCEPTION.—If investigations are initiated under subtitle 3028,3029.
A and subtitle B regarding the same merchandise from the
19 USC 1671,
same country within 6 months of each other (but before a final 1673.
determination is made in either investigation), the holding of a
hearing by the Commission in the course of one of the investigations shall be treated as compliance with paragraph (1) for both
investigations, unless the Commission considers that special
circumstances require that a hearing be held in the course of
each of the investigations. During any investigation regarding
which the holding of a hearing is waived under this paragraph,
the Commission shall allow any party to submit such additional
written comment as it considers relevant.".
SEC. 617. SUBSIDIES DISCOVERED DURING PROCEEDING.

Section 775 (19 U.S.C. 1677d) is amended by striking out "investigation" each place it appears in the text and in the heading and
inserting in lieu thereof "proceeding".
SEC. 618. VERIFICATION OF INFORMATION.

Section 776(a) (19 U.S.C. 1677e(a)) is amended to read as follows:
"(a) GENERAL RULE.—The administering authority shall verify all
information relied upon in making—
"(1) a final determination in an investigation,
"(2) a revocation under section 751(c), and
"(3) a review and determination under section 751(a), if—

Ante, p. 3031.

98 STAT. 3038
Ante, p. 3033.

PUBLIC LAW 98-573—OCT. 30, 1984

"(A) verification is timely requested by an interested
party as defined in section 771(9) (C), (D), (E), or (F), and
"(B) no verification was made under this paragraph
during the 2 immediately preceding reviews and determinations under that section of the same order, finding, or
notice, except that this clause shall not apply if good cause
for verification is shown.
In publishing notice of any action referred to in paragraph (1), (2), or
(3), 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
action, which may include, in actions referred to in paragraph (1),
the information submitted in support of the petition.".
SEC. 619. RECORDS OF EX PARTE MEETINGS; RELEASE OF CONFIDENTIAL
INFORMATION.

Section 777 (19 U.S.C. 1677f) is amended—
(1) by amending paragraph (3) of subsection (a) to read as
follows:
"(3) Ex PARTE MEETINGS.—The administering authority and
the Commission shall maintain a record of any ex parte meeting
between—
"(A) interested parties or other persons providing factual
information in connection with a proceeding, and
"(B) the person charged with making the determination,
or any person charged with making a final recommendation
to that person, in connection with that proceeding,
if information relating to that proceeding was presented or
discussed at such meeting. The record of such an 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.";
(2) by strilang out "submitted)" in the first sentence of subsection (b) and inserting in lieu thereof "submitted, or an officer or
employee of the United States Customs Service who is directly
involved in conducting an investigation regarding fraud under
this title)";
(3) by striking out the second sentence of subsection (b) and
inserting in lieu thereof the following new sentence: "The administering authority and the Commission shall require that
information for which confidential treatment is requested be
accompanied by—
"(A) either—
"(i) a nonconfidential summary in sufficient detail to
permit a reasonable understanding of the substance of
the information submitted in confidence, or
"(ii) a statement that the information is not susceptible to summary accompanied by a statement of the
reasons in support of the contention, and
"(B) either—
"(i) a statement which permits the administering
authority to release under administrative protective
order, in accordance with subsection (c), the information submitted in confidence, or

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3039

"(ii) a statement that the information should not be
released under administrative protective order."; and
(4) by inserting "(before or after receipt of the information
requested)" after "application," in subsection (cXlXA).
SEC. 620. SAMPLING AND AVERAGING IN DETERMINING UNITED STATES
PRICE AND FOREIGN MARKET VALUE.

(a) Subtitle D of title VII (19 U.S.C. 1677a et seq.) is amended by
adding immediately after section 777 the following new section:
"SEC. 777A. SAMPLING AND AVERAGING.

"(a) IN GENERAL.—For the purpose of determining United States
price or foreign market value under sections 772 and 773, and for
purposes of carrying out annual reviews under section 751, 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 1677f-l.
19 u s e 1677a;
ante, p. 3036.
Ante, p. 3031.

"(b) SELECTION OF SAMPLES AND AVERAGES.—The authority to

select appropriate samples and averages shall rest exclusively with
the administering authority; but such samples and averages shall be
representative of the transactions under investigation.".
(b) Subsection (f) of section 773 (19 U.S.C. 1677b(f)) is repealed.
(c) The table of contents for title VII is amended by inserting after
the entry for section 777 the following:
"Sec. 777A. Sampling and averaging.".
SEC. 62L INTEREST.

Section 778 (19 U.S.C. 1677g) is amended to read as follows:
"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—
"(1) the date of publication of a countervailing or antidumping duty order under this title or section 303, or
"(2) the date of a finding under the Antidumping Act, 1921.
"(b) RATE.—The rate of interest payable under subsection (a) for
any period of time is the rate of interest established under section
6621 of the Internal Revenue CJode of 1954 for such period.".

19 u s e 1671;
ante, p. 1303.
19 u s e 160 note.
26 u s e 6621.

SEC. 622. DRAWBACKS.

(a) Title VII is amended—
(1) by striking out section 740, and
(2) by adding at the end of subtitle D the following new
section:
"SEC. 779. DRAWBACKS.

"For purposes of any law relating to the drawback of customs
duties, countervailing duties and antidumping duties imposed by
this title shall be treated as any other customs duties.".
(b) The table of contents for such title is amended—
(1) by striking out
"Sec. 740. Antidumping duty treated as a r^ular duty for drawback purposes.";

19 u s e 16731.

19 u s e 1677h.

98 STAT. 3040

PUBLIC LAW 98-573—OCT. 30, 1984
and
(2) by adding at the end thereof

"Sec. 779. Drawbacks.".
SEC. 623. ELIMINATION OF INTERLOCUTORY APPEALS.

19 use 1671a,
1673a.
Ante, p. 3031.

19 use 1671b,
1673b.

(a) Section 516A(a) (19 U.S.C. 1516a(a)) is amended as follows:
(1) Paragraph (1) is amended to read as follows:
"(1) REVIEW OF CERTAIN DETERMINATIONS.—Within 30 days
after the date of publication in the Federal Register of^
"(A) a determination by the administering authority,
under 702(c) or 732(c) of this Act, not to initiate an
investigation,
"(B) a determination by the Commission, under section
751(b) of this Act, not to review a determination based upon
changed circumstances, or
"(C) 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,
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 Court of International Trade 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) Paragraph (2)(A) is amended—
(A) by striking out "the date of publication in the Federal
Register o f in the matter preceding clause (i); and
(B) by amending clauses (i) and (ii) to read as follows:
"(i) 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), or
"(ii) the date of mailing of a determination described
in clause (vi) of subparagraph (B),".
(3) Amend paragraph (2)(B) to read as follows:
"(B) REVIEWABLE DETERMINATIONS.—The determinations

Ante, pp. 3024,
3028, 3029.

which may be contested under subparagraph (A) are as
follows:
"(i) Final affirmative determinations by the administering authority and by the Commission under section
705 or 735 of this Act, including any negative part of
such a determination (other than a part referred to in
clause (ii)).
"(ii) A final negative determination by the administering authority or the Commission under section 705
or 735 of this Act, including, at the option of the
appellant, any part of a final affirmative determination
which specifically excludes any company or product.
"(iii) A final determination, other than a determination reviewable under paragraph (1), by the administer-

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3041

ing authority or the Commission under section 751 of
t h i s Act.

"(iv) A determination by the administering authority, under section 704 or 734 of this Act, to suspend an
antidumping duty or a countervailing duty investigation, including any final determination resulting from
a continued investigation which changes the size of the
dumping margin or net subsidy calculated, or the reasoning underlying such calculations, at the time the
suspension agreement was concluded.
"(v) An injurious effect determination by the Commission under section 704(h) or 734(h) of this Act.
"(vi) A determination by the administering authority
as to whether a particular type of merchandise is
within the class or kind of merchandise described in an
existing finding of dumping or antidumping or countervailing duty order.".
(4) Redesignate paragraph (3) as paragraph (4) and after
paragraph (2) insert the following:
"(3) EXCEPTION.—Notwithstanding the limitation imposed by
paragraph (2)(A)(ii) of this subsection, a final affirmative determination by the administering authority under section 705 or
735 of this Act may be contested by commencing an action, in
accordance with the provisions of paragraph (2)(A), within
thirty days after tjae date of publication in the Federal Register
of a final negative determination by the Commission under
section 705 or 735 of this Act.".
(b) Title 28, United States Code, is amended as follows:
(1) Section 2636 is amended—
(A) by amending subsection (c) to read as follows:
"(c) A civil action contesting a reviewable determination listed in
section 516A of the Tariff Act of 1930 is barred unless commenced in
accordance with the rules of the Court of International Trade within
the time specified in such section."; and
(B) by striking out subsection (d) and redesignating subsections (e) through (b as (d) through (h), respectively.
(2) Section 2647 is amended to read as follows:

Ante, p. 3031.

Ante, pp. 3025,
^^^6.

Ante, pp. 3024,
3028,3029.

Ante, p. 3040.

"§ 2647. Precedence of cases
"The following civil actions in the Court of International Trade
shall be given precedence, in the following order, over other civil
actions pending before the Court, and shall be assigned for hearing
at the earliest practicable date and expedited in every way:
"(1) First, a civil action involving the exclusion of perishable
merchandise or the redelivery of such merchandise.
"(2) Second, a civil action commenced under section 515 of the
Tariff Act of 1930 involving the exclusion or redelivery of 19USC1515.
merchandise.
"(3) Third, a civil action commenced under section 516 or
516A of the Tariff Act of 1930.".
19 USC 1516;
SEC. 624. ADJUSTMENTS STUDY.

The Secretary of Commerce shall undertake a study of the current
practices that are applied in the making of adjustments to purchase
prices and exporter's sales prices under section 772 (d) and (e) (19
U.S.C. 1677a (d) and (e)) and foreign market value and constructed

ante, p. 3040.

98 STAT. 3042
Ante, p. 3036.

Report.

PUBLIC LAW 98-573—OCT. 30, 1984

value under section 773 (19 U.S.C. 1677b) in determining antidumping duties. The study shall include, but not be limited to—
(1) a review of the types of adjustments currently being made;
(2) a review of private sector comments and recommendations
regarding the subject that were made at congressional hearings
during the first session of the Ninety-eighth Congress; and
(3) the manner and extent to which such adjustments lead to
inequitable results.
Within one year after the date of the enactment of this Act, the
Secretary of Commerce shall complete the study required under this
section and shall submit to Congress a written report regarding the
study and containing such recommendations as the Secretary deems
appropriate regarding the need, and the means, for simplifying and
modifying current practices in the making of such adjustments.
SEC. 625. INDUSTRIAL TARGETING STUDIES.

19 u s e 1671.

19 u s e 1671
note.

19 u s e 1671,
1673.

19 u s e 1671.
19 u s e 1671a,
1673a.

The Secretary of Commerce, the Secretary of Labor, the United
States Trade Representative, and the Comptroller General of the
United States shall each undertake, and submit to the Congress not
later than June 1, 1985, a comprehensive study of the problem of
foreign industrial targeting, whereby foreign governments adopt
plans or schemes of coordinated activities to foster and benefit
specific industries, and of the desirability or need to amend the
United States trade laws in order to provide effective remedies for
domestic industries against the adverse effects of such targeting. To
the extent consistent with agency jurisidiction, such studies shall
include, but are not limited to—
(1) an analysis of^
(A) whether foreign industrial targeting should be considered as an unfair trade practice under United States law;
(B) whether current law, including the remedies under
title VII of the Tariff Act of 1930, adequately address the
subsidy element of foreign industrial policy measures; and
(C) the extent to which foreign industrial targeting practices are significantly affecting United States commerce;
and
(2) any recommended legislation considered necessary based
on the study results.
SEC. 626. EFFECTIVE DATES.

(a) Except as provided in subsections (b) and (c), this Act, and the
amendments made by it, shall take effect on the date of the enactment of this Act.
(b)(1) The amendments made by sections 602, 609, 611, 612, and
620 shall apply with respect to investigations initiated by petition or
by the administering authority under subtitles A and B of title VII
of the Tariff Act of 1930 on or after such effective date.
(2) The amendments made by section 623 shall apply with respect
to civil actions pending on, or filed on or after, the date of the
enactment of this Act.
(c)(1) No provision of title VII of the Tariff Act of 1930 shall be
interpreted to prevent the refiling of a petition under section 702 or
732 of that title that was filed before the date of the enactment of
this title, if the purpose of such refiling is to avail the petitioner of
the amendment made by section 612(a)(1).

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3043

(2) The amendment made by section 612(aXl) shall not apply with
respect to petitions filed (or refiled under paragraph (1)) under
section 702 or 732 of the Tariff Act of 1930 after September 30,1986.

19 u s e 1671a,
1673a.

TITLE VII—AUTHORIZATION OF APPROPRIATIONS FOR CUSTOMS AND TRADE AGENCIES
SEC. 701. UNITED STATES INTERNATIONAL TRADE COMMISSION.

The first sentence of paragraph (2) of section 330(e) of the Tariff
Act of 1930 (19 U.S.C. 133(eX2)) is amended to read as follows: "There
are authorized to be appropriated to the C!k)mmission for necessary
expenses (including the rental of conference rooms in the District of
Columbia and elsewhere) for fiscal year 1985 not to exceed
$28,410,000; of which not to exceed $2,500 may be used, subject to
approval by the Chairman of the Commission, for reception and
entertainment expenses.".

19 u s e 1330.
19 u s e 1330.

SEC. 702. UNITED STATES CUSTOMS SERVICE.

Section 301 of the Customs Procedural Reform and Simplification
Act of 1978 (19 U.S.C. 2075) is amended as follows:
(1) Subsection (b) is amended to read as follows:
"(b) There are authorized to be appropriated to the Department of
the Treasury not to exceed $686,399,000 for the salaries and expenses of the United States Customs Service for fiscal year 1985; of
which (A) $28,070,000 is for the operation and maintenance of the
air interdiction program of the Service, and (B) not to exceed
$15,000,000 is for the implementation of the 'Operation EXODUS'
program and any related program designed to enforce or monitor
export controls under the Export Administration Act of 1979.".
(2) Subsection (d) is redesignated as subsection (e).
(3) The following new subsection is inserted immediately after
subsection (c):
"(d) No part of any sum that is appropriated under subsection (b)
for fiscal years after September 30, 1984, may be used for administrative expenses to pay any employee of the United States Customs
Service overtime pay in an amount exceeding $25,000; except that
the Commissioner of Customs or his designee may waive this limitation in individual cases in order to prevent excessive costs or to meet
emergency requirements of the Service.".

50 u s e 2401
note.

SEC. 703. OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE.

Section 141(fXl) of the Trade Act of 1974 (19 U.S.C. 2171(fXl)) is
(1) by striking out "$11,100,000 for fiscal year 1983" and
inserting in lieu thereof "$14,179,000 for fiscal year 1985"; and
(2) by striking out "$65,000" and inserting in lieu thereof
"$80,000".

TITLE VIII—ENFORCEMENT AUTHORITY FOR
THE NATIONAL POLICY FOR THE STEEL INDUSTRY

Steel Import
Stabilizatfon
Act.

SEC. 801. SHORT TITLE.

19 u s e 2258
note.

This title may be cited as the "Steel Import Stabilization Act".

98 STAT. 3044
19 u s e 2253

PUBLIC LAW 98-573—OCT. 30, 1984
SEC. 802. FINDINGS AND PURPOSES.

(a) The Congress finds that—
(1) the United States steel industry has a serious need to
modernize its plant and equipment in order to enhance its
international competitiveness, and needs increased capital investments to effect that modernization;
(2) the ability of the domestic steel industry to be internationally competitive is, and has been, impeded by the effects of the
enormous Federal budget deficit, an overvalued dollar, and
increasing trade deficits, as well as serious injury due to imports
of, and subsidies, dumping, and the use of other unfair and
restrictive foreign trade practices regarding steel products;
(3) the extensiveness of the unfair trade practices engaged in
the international market regarding such products imposes unusually harsh burdens on the United States steel industry in
combating those practices through the trade remedy laws;
(4) expeditious and effective action under the President's
national policy for the steel industry, including more vigorous
efforts by the Executive Branch to self-initiate and pursue
remedies against those practices, is needed to eliminate the
adverse effects of those unfair trade practices;
(5) import relief will be ineffective and will not serve the
national economic interest unless the industry during the
period of relief engages in serious efforts substantially to modernize and to improve its international competitiveness; and
(6) full and effective implementation of the national policy for
the steel industry will substantially improve the economy and
employment in both the steel and iron ore-producing sectors.
(b) The purposes of this title are—
(1) to supplement the authority of the President to achieve the
goals of the national policy for the steel industry by granting
enforcement powers regarding those bilateral arrangements
that are entered into or undertaken for purposes of implementing that national policy; and
(2) to make the continuation of those powers subject to the
condition that the steel industry undertake a comprehensive
modernization of its plant and equipment.
19 u s e 2253
note.

SEC. 803. SENSE OF CONGRESS REGARDING THE NATIONAL POLICY FOR
THE STEEL INDUSTRY.

It is the sense of the Congress that—
(1) the President should, in conjunction with the authority
granted under this title, implement the national policy for the
steel industry in a manner to ensure that the foreign share of
the United States market for steel products is commensurate
with a level which would obtain under conditions of fair, unsubsidized competition; and it is further the sense of Congress that
when this policy is fully implemented, it will result in a foreign
share of the domestic market of 17.0 to 20,2 percent, subject to
such modifications that changes in market conditions and the
composition of the steel industry may require;
(2) the national policy for the steel industry should not be
implemented in a manner contrary to the antitrust laws; and
(3) if the national policy for the steel industry does not
produce satisfactory results within a reasonable period of time,
the Congress will consider taking such legislative actions concerning steel and iron ore products as may be necessary or

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3045

appropriate to stabilize conditions in the domestic market for
such products.
SEC. 804. DEFINITIONS.

19 USC 2253

As used in this title—
(1) The term "bilateral arrangement" means any arrangement, agreement, or understanding (including, but not limited
to, any surge control understanding or suspension agreement)
entered into or undertaken, or previously entered into or undertaken, by the United States and any foreign country or customs
union containing such quantitative limitations, restrictions, or
other terms relating to the importation into, or exportation to,
the United States of categories of steel products as may be
necessary to implement the national policy for the steel
industry.
(2) The term "national policy for the steel industry" means
those actions and elements described in Executive Communication 4046, dated September 18, 1984 (printed as House
Document 98-263).
(3) The term "steel industry" means producers in the United
States of steel products.
SEC. 805. ENFORCEMENT AUTHORITY.

(a) Subject to section 806, the President is authorized to carry out
such actions as may be necessary or appropriate to enforce the
quantitative limitations, restrictions, and other terms agreed to
between the United States and steel-exporting nations as contained
in bilateral arrangements. Such actions may include, but are not
limited to, requirements that valid export licenses or other documentation issued by a foreign government be presented as a
condition for the entry into the United States of steel products.
0)X1) In connection with the provisions of the Arrangement on
European Communities' Export of Pipes and Tubes to the United
States of America, contained in an exchange of letters dated October
21, 1982, between representatives of the United States and the
Commission of the European Communities, including any modification, clarification, extension, or successor agreement thereto
(collectively referred to hereinafter as "the Arrangement"), the
Secretary of Commerce is authorized to request the Secretary of the
Treasury to take action pursuant to paragraph (2) of this subsection
whenever he determines that—
(A) the level of exports of pipes and tubes to the United States
from the European Communities is exceeding the average share
of annual United States apparent consumption specified in the
Arrangement, or
(B) distortion is occurring in the pattern of United StatesEuropean Communities trade within the pipe and tube sector
taking into account the average share of annual United States
apparent consumption accounted for by European Communities
articles within product categories developed by the Secretary of
Commerce.
Any re<iuest to the Secretary of the Treasury pursuant to this
subsection by the Secretary of Commerce shall identify one or more
categories of pipe and tube products with respect to which action
under paragraph (2) is requested.
(2) At the request of the Secretary of Commerce pursuant to
paragraph (1), the Secretary of the Treasury shall take such action

31-194 0 - 86 - 22 : QL.3 Part3

19 USC 2253

98 STAT. 3046

PUBLIC LAW 98-573—OCT. 30, 1984

as may be necessary to ensure that the aggregate quantity of
European Communities articles in each product category identified
by the Secretary of Commerce in such request that are entered into
the United States are in accordance with the terms of the
Arrangement.
(3) Nothing in this subsection may be construed as prohibiting the
Secretary of Commerce from permitting the importation of additional quantities of specific products in cases where the Secretary
determines that conditions of short supply or emergency economic
situations related to market demand exist; except that a short
supply or emergency economic situation shall not be considered to
exist solely because domestic producers are unwilling to supply
products at prices below their costs of production (as determined by
the Secretary of Commerce).
(c) For purposes of carrying out this title, the Secretary of the
Treasury may provide by regulation for the terms and conditions
under which steel products may be denied entry into the United
States.
19 u s e 2253

SEC. 806. EFFECTIVE PERIOD OF TITLE.

^°^'

(a) IN GENERAL.—Section 805 shall terminate—
(1) at the close of the fifth anniversary of the effective date of
this title; or
(2) at the close of the first, second, third, or fourth anniversary of the effective date of this title, unless the President,
before each such anniversary, submits to the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate (in writing and together
with the reasons therefor) an affirmative annual determination
described in subsection (b).
(bXD An affirmative annual determination is a determination by
the President that—
(A) the major companies of the steel industry, taken as a
whole, have, during the 12-month period ending at the close of
an anniversary referred to in subsection (aX2)—
(i) committed substantially all of their net cash flow from
steel product operations for purposes of reinvestment in,
and modernization of, that industry through investment in
modern plant and equipment, research and development,
and other appropriate projects, such as working capital for
steel operations and programs for the retraining of workers;
and
(ii) taken sufficient action to maintain their international
competitiveness, including action to produce price-competitive and quality-competitive products, to control costs of
production, including employment costs, and to improve
productivity; and
(B) each of the major companies committed for the applicable
12-month period not less than 1 percent of net cash flow to the
retraining of workers; except that this requirement may be
waived by the President with respect to a major company in
noncompliance, if he finds unusual economic circumstances
exist with respect to that company; and
(C) the enforcement authority provided under section 805
remains necessary to maintain the effectiveness of bilateral
arrangements undertaken to eliminate unfair trade practices in
the steel sector.

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3047

(2) For purposes of this subsection—
(A) the term "major company" means an enterprise whose
raw steel production in the United States during 1983 exceeded
1,500,000 net tons.
(B) The term "net cash flow" means annual net (after-tax)
income plus depreciation, depletion allowances, amortization,
and changes in reserves minus dividends and payments on
short-term and long-term debts and liabilities.
(3) For purposes of carrying out this subsection, the President
shall take into account such information as may be available from
the United States International Trade Commission and other appropriate sources relating to the modernization efforts of the steel
industry.
SEC. 807. DEPARTMENT OF LABOR WORKER ASSISTANCE PLAN.

19 USC 2253

Within 6 months after the effective date of this title, the Secretary
of Labor shall prepare (in consultation with the Steel Advisory
Committee established on November 3, 1983, by the Secretary of
Commerce and the Secretary of Labor (48 F.R. 51165)) and submit to
the Congress a proposed plan of action for assisting workers in
communities that are adversely affected by imports of steel products; which assistance shall include retraining and relocation for
former workers in the steel industry who will likely be unable to
return to employment in that industry. The plan required under
this section shall be based upon existing authorities for providing
such assistance, but shall be accompanied by such recommendations
for additional statutory authority as the Secretary of Labor considers necessary to carry out the purposes of the plan.
SEC. 808. EFFECTIVE DATE.

19 USC 2253

This title shall take effect on October 1,1984.
TITLE IX—WINE TRADE
SEC. 901. SHORT TITLE.

wine Equity and
Export Expansion Act of 1984.
19 UgQ ggQl

This title may be cited as the "Wine Equity and Export Expansion ^°^Act of 1984".
SEC. 902. CONGRESSIONAL FINDINGS AND PURPOSES.

(a) Congress finds that—
(1) there is a substantial imbalance in international wine
trade resulting, in part, from the relative accessibility enjoyed
by foreign wines to the United States market while the United
States wine industry faces restrictive tariff and nontariff barriers in virtually every existing or potential foreign market;
(2) the restricted access to foreign markets and the continued
low prices for United States wine and grape products adversely
affect the economic position of our Nation's winemakers and
grape growers, as well as all other domestic sectors that depend
upon wine production;
(3) the competitive position of United States wine in international trade has been weakened by foreign trade practices, high
domestic interest rates, and unfavorable foreign exchange rates;
(4) wine consumption per capita is very low in many major
non-wine producing markets and the demand potential for
United States wine is significant; and

19 USC 2801.

98 STAT. 3048

PUBLIC LAW 98-573—OCT. 30, 1984
(5) the United States winemaking industry has the
capacity and the ability to export substantial volumes of wine
and an increase in United States wine exports will create new
jobs, improve this Nation's balance of trade, and otherwise
strengthen the national economy,
(b) The purposes of this title are—
(1) to provide wine consumers with the greatest possible
choice of wines from wine-producing countries;
(2) to encourage the initiation of an export promotion program to develop, maintain, and expand foreign markets for
United States wine; and
(3) to achieve greater access to foreign markets for United
States wine and grape products through the reduction or elimination of tariff barriers and nontariff barriers to (or other
distortions of) trade in wine.

19 u s e 2802.

SEC. 903. DEFINITIONS.

For purposes of this title—
(1) The term "Committees" means the Committee on Ways
and Means of the House of Representatives and the Committee
on Finance of the Senate.
(2) The term "grape product" means grapes and any product
(other than wine) made from grapes, including, but not limited
to, raisins and grape juice, whether or not concentrated.
(3) The term "major wine trading country" means any foreign
country, or group of foreign countries, designated as such under
section 904.
(4) The phrase "nontariff barrier to (or other distortion of)",
in the context of trade in United States wine, includes any
measure implemented by the government of a major wine
trading country that either gives a competitive advantage to the
wine industry of that country or restricts the importation of
United States wine into that country.
(5) The term "Trade Representative" means the United States
Trade Representative.
(6) The term "United States wine" means wine produced
within the customs territory of the United States.
(7) The term "wine" means any fermented alcoholic beverage
that—
(A) is made from grapes or other fruit;
(B) contains not less than 0.5 percent alcohol by volume
and not more than 24 percent alcohol by volume, including
all dilutions and mixtures thereof by whatever process
produced; and
(C) is for nonindustrial use.
19 u s e 2803.

SEC. 904. DESIGNATION OF MAJOR WINE TRADING COUNTRIES.

(a) The Trade Representative shall designate as a major wine
trading country each foreign country, or group of foreign countries
represented as an economic union, that, in the judgment of the
Trade Representative—
(1) is a potential significant market for United States wine;
and
(2) maintains tariff barriers or nontariff barriers to (or other
distortions of) trade in United States wine.
(b) In deciding, for purposes of subsection (a)(2), whether a foreign
country or group of countries maintains nontariff barriers to (or

PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3049

other distortions of) trade in United States wine, the Trade Representative shall take into account—
(1) the review and report required under section 854(a) of the
Trade Agreements Act of 1979 (19 U.S.C. 2135 note);
(2) such relevant actions that may have been taken by that
country or group since that review was conducted; and
(3) such information as may be submitted under section 906
by representatives of the wine and grape products industries in
the United States, as well as other sources.
SEC. 905. ACTIONS TO REDUCE OR ELIMINATE TARIFF AND NONTARIFF
BARRIERS AFFECTING UNITED STATES WINE.

19 USC 2804.

(a) The President shall direct the Trade Representative to enter
into consultations with each major wine trading country to seek a
reduction or elimination of that country's tariff barriers and nontariff barriers to (or other distortions of) trade in United States wine.
(b)(1) the President shall notify each of the Committees regarding
the extent and effect of the efforts undertaken since the submission
of the report required under section 854(a) of the Trade Agreements
Act of 1979, and during the 12-month period beginning on the date
of the enactment of this Act, to expand opportunities in each major
wine trading country for exports of United States wine. Such notification, which shall be in the form of a separate written report (that
must be submitted within 30 days after the close of that 12-month
period) for each major wine trading country, shall include—
(A) a description of each act, policy, and practice (and of its
legal basis and, operation) in that country that constitutes a
tariff barrier or nontariff barrier to (or other distortion of) trade
in United States wine (and that description shall be based upon
an updating of the report that was submitted to the Congress
under section 854(a) of the Trade Agreements Act of 1979);
(B) an assessment of the extent to which each such act, policy,
or practice is subject to international agreements to which the
United States is a party;
(C) information with respect to any action taken, or proposed
to be taken, under existing authority to eliminate or reduce
each such act, policy, or practice, including, but not limited to—
(i) any action under the Trade Act of 1974, and
(ii) any negotiation or consultation with any foreign government;
(D) if action referred to in subparagraph (C) was not taken, an
explanation of the reasons therefore; and
(E) recommendations to the Congress of any additional legislative authority or other action which the President believes is
necessary and appropriate to obtain the elimination or reduction of foreign tariff barriers or nontariff barriers to (or other
distortions of) trade in United States wine.
(2) The reports required under paragraph (1) shall be developed
and coordinated by the Trade Representative through the interagency trade organization established by section 242(a) of the
Trade Expansion Act of 1962.
(c) If the President, after taking into account information and
advice received under subsections (a) and (b), section 906 or from
other sources, determines that action is appropriate to respond to
any act, policy, or practice of a major wine trading country constitutes a tariff barrier or nontariff barrier to (or other distortion of)
trade in United States wine and—

President of U.S.

Report,

19USC2135
note,

19 USC 2101.

19 usc 1872.

98 STAT. 3050

19 use 2101.
19 u s e 2805.

PUBLIC LAW 98-573—OCT. 30, 1984

(1) is inconsistent w i ^ the provisions of, or otherwise denies
benefits to the United States under, any trade agreement; or
(2) is unjustifiable, unreasonable, or discriminatory and burdens or restricts United States commerce;
the President, shall take all appropriate and feasible action under
the Trade Act of 1974 to enforce the rights of the United States
under any such trade agreement or to obtain the elimination of such
act, policy, or practice.
SEC. 906. REQUIRED CONSULTATIONS.

The Trade Representative shall consult with the Committees and
with representatives of the wine and grape products industries in
the United States—
(1) before identifying tariff barriers and nontariff barriers to
(or other distortions of) trade in United States wine and designating major wine trading countries under section 904;
(2) in developing the reports required under section 905(b);
and
(3) for purposes of determining whether action by the President is appropriate under any provision of the Trade Act of 1974
with respect to any act, policy, or practice referred to in section
905(b)(1).
19 u s e 2806.

7 use 612c.

SEC. 907. UNITED STATES WINE EXPORT PROMOTION.

In order to develop, maintain, and expand foreign markets for
United States wine, the President is encouraged to—
(1) utilize, for the fiscal year ending September 30, 1985, the
authority provided under section 135 of the Omnibus Budget
Reconciliation Act of 1982 to make available sufficient funds to
initiate, in cooperation with nongovernmental trade associations representative of United States wineries, an export promotion program for United States; and
(2) request, for each subsequent fiscal year, an appropriation
for such a wine export promotion program that will not be at
the expense of any appropriations requested for export promotion programs involving other agriculture commodities.
Approved October 30, 1984.

LEGISLATIVE HISTORY—H.R. 3398:
HOUSE REPORTS: No. 98-267 (eomm. on Ways and Means) and No. 98-1156 (eomm.
of Conference).
SENATE REPORT No. 98-308 (Comm. on Finance).
CONGRESSIONAL RECORD:
Vol. 129 (1983): June 28, considered and passed House.
Vol. 130 (1984): Mar. 2, Sept. 17-20, considered and passed Senate, amended.
Oct. 3, House concurred in a Senate amendment and in others
with amendments.
Oct. 9, House and Senate agreed to conference report.