Full text of United States-Canada Free Trade Agreement Implementation Act of 1988

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PUBLIC LAW 100-449—SEPT. 28, 1988

Public Law 100-449
100th Congress

102 STAT. 1851

An Act

To implement the United States-Canada Free-Trade Agreement.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the "United StatesCanada Free-Trade Agreement Implementation Act of 1988".
(b) TABLE OF CONTENTS.—
Sec. 1. Short title and table of contents.
Sec. 2. Purposes.
TITLE I—APPROVAL OF UNITED STATES-CANADA FREE-TRADE AGREEMENT AND RELATIONSHIP OF AGREEMENT TO UNITED STATES LAW
Sec. 101. Approval of United States-Canada Free-Trade Agreement.
Sec. 102. Relationship of the £igreement to United States law.
Sec. 103. Consultation and lay-over requirements for, and effective date of, proclaimed actions.
Sec. 104. Harmonized System.
Sec. 105. Implementing actions in anticipation of entry into force.

Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

TITLE II—TARIFF MODIFICATIONS, RULES OF ORIGIN, USER FEES,
DRAWBACK, ENFORCEMENT, AND OTHER CUSTOMS PROVISIONS
201. Tariff modifications.
202. Rules of origin.
203. Customs user fees.
204. Drawback.
205. Enforcement.
206. Exemption from lottery ticket embargo.
207. Production-based duty remission programs with respect to automotive
products.

TITLE III—APPLICATION OF AGREEMENT TO SECTORS AND SERVICES
Sec. 301. Agriculture.
Sec. 302. Relief from imports.
Sec. 303. Acts identified in national trade estimates.
Sec. 304. Negotiations regarding certain sectors; biennial reports.
Sec. 305. Energy.
Sec. 306. Lowered threshold for Grovemment procurement under Trade Agreements
Act of 1979 in the case of certain Canadian products.
Sec. 307. Temporary entry for business persons.
Sec. 308. Amendment to section 5136 of the Revised Statutes.
Sec. 309. Steel products.
TITLE IV—BINATIONAL PANEL DISPUTE SETTLEMENT IN ANTIDUMPING
AND COUNTERVAILING DUTY CASES
Sec. 401. Amendments to section 516A of the Tariff Act of 1930.
Sec. 402. Amendments to title 28, United States Code.
Sec. 403. Conforming amendments to the Tariff Act of 1930.
Sec. 404. Amendments to antidumping and countervailing duty law.
Sec. 405. Organizational and administrative provisions regarding the implementa*
tion of chapters 18 and 19 of the Agreement.
Sec. 406. Authorization of appropriations for the Secretariat, the panels, and the
committees.
Sec. 407. Testimony and production of papers in extraordinary chfdlenges.

Sept. 28, 1988
[H.R. 5090]
United StatesCanada FreeTrade
Agreement
Implementation
Act of 1988.
Exports.
Imports.
19 u s e 2112
note.

102 STAT. 1852

PUBLIC LAW 100-449—SEPT. 28, 1988

Sec. 408. Requests for review of Canadian antidumping and countervailing duty
determinations.
Sec 409. Subsidies.
Sec. 410. Termination of agreement.
TITLE V—EFFECTIVE DATES AND SEVERABILITY
Sec. 501. Effective dates.
Sec. 502. Severability.
19 u s e 2112

^°^'

19 u s e 2112
note.

SEC. 2. PURPOSES.

The purposes of this Act are—
(1) to approve and implement the Free-Trade Agreement
between the United Stat^ and Canada n^otiated under the
authority of section 102 of the Trade Act of 1974;
(2) to strengthen and develop economic relations between the
United States and Canada for their mutual benefit;
(3) to establish a free-trade area between the two nations
through the reduction and elimination of barriers to trade in
goods and services and to investment; and
(4) to lay the foundation for further cooperation to expand
and enhance the benefits of such Agreement.

TITLE I—APPROVAL OF UNITED STATESCANADA FREE-TRADE AGREEMENT AND
RELATIONSHIP OF AGREEMENT TO
UNITED STATES LAW
SEC. 101. APPROVAL OF
AGREEMENT.

UNITED

STATES-CANADA

FREE-TRADE

(a) APPROVAL OF AGREEMENT AND STATEMENT OF ADMINISTRATIVE

ACTION.—Pursuant to sections 102 and 151 of the Trade Act of 1974
(19 U.S.C. 2112 and 2191), the Congress approves—
(1) the United StatesOanada Free-Trade Agreement (hereinafter in this Act referred to as the "Agreement") entered into
on January 2, 1988, and submitted to the Congress on July 25,
1988;
(2) the letters exchanged between the Governments of the
United States and (Canada—
(A) dated January 2,1988, relating to n^otiations regarding articles 301 (Rules of Origin) and 401 (Tariff Elimination) of the Agreement, and
(B) dated January 2,1988, relating to n^otiations regarding article 2008 (Plywood Standards) of the Agreement; and
(3) the statement of administrative action proposed to implement the Agreement that was submitted to the Congress on
July 25,1988.
President of U.S.

(b) CONDITIONS FOR E N T R Y I N T O F O R C E OF THE AGREEMENT.—At

such time as the President determines that Canada has taken
measures necessary to comply with the obligations of the Agreement, the President is authorized to exchange notes with the
Government of Canada providing for the entry into force, on or after
January 1,1989, of the Agreement with respect to the United States,
(c) REPORT ON CANADIAN PnAcncaES.—Within 60 dajrs after the
date of the enactment of this Act (but not later than December 15,
1988), the United States Trade Representative shall submit to the

^J>^^

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1853

Congress a report identifying, to the maximum extent practicable,
major current Canadian practices (and the l ^ a l authority for
such practices) that, in the opinion of the United States Trade
Representative—
(1) are not in conformity with the Agreement; and
(2) require a change of Canadian law, regulation, policy, or
practice to enable Canada to conform with its international
obligations under the Agreement.
SEC. 102. RELATIONSHIP OF THE AGREEMENT TO UNITED STATES LAW.

(a) UNITED STATES LAWS TO PREVAIL IN CONFUCT.—No provision
of the Agreement, nor the application of any such provision to any
person or circumstance, which is in conflict with any law of the
United States shall have effect.
(b) RELATIONSHIP OF AGREEI«IENT TO STATE AND LOCAL LAW.—

(1) The provisions of the Agreement prevail over—
(A) any conflicting State law; and
(B) any conflicting application of any State law to any
person or circumstance;
to the extent of the confUct.
(2) Upon the enactment of this Act, the President shall, in President of U.S.
accordance with section 306(cX2XA) of the Trade and Tariff Act
of 1984 (19 U.S.C. 2114c), initiate consultations with the State
governments on the implementation of the obligations of the
United States under the Agreement. Such consultations shall be
held—
(A) through the intergovernmental policy advisory
committees on trade established under such section for the
purpose of achieving conformity of State laws and practices
with the Agreement; and
(B) with the individual States as necessary to deal with
particular questions that may arise.
(3) The United States may bring an action challenging any
provision of State law,' or the application thereof to any person
or circumstance, on the ground that the provision or application
is inconsistent with the Agreement.
(4) For purposes of this subsection, the term "State law"
includes—
(A) any law of a political subdivision of a State; and
(B) any State law r^ulating or taxing the business of
insurance.
(c) EFFECT OF AcREEikfENT W I T H RESPECT TO PRIVATE REMEDIES.—

No person other than the United States shall—
(1) have any cause of action or defense under the Agreement
or by virtue of congressional approval thereof, or
(2) challenge, in any action brought under any provision of
law, any action or inaction by any department, agency, or other
instrumentality of the United States, any State, or any political
subdivision of a State on the ground that such action or inaction
is inconsistent with the Agreement.
(d) INITIAL IMPLEMENTING REGULATIONS.—Initial r^ulations necessary or appropriate to carry out the actions proposed in the
statement of administrative action submitted under section 101(aX3)
to implement the Agreement shall, to the maximum extent feasible,
be issued vdthin 1 year after the date of entry into force of the
Agreement. In the case of any implementing action that takes effect
after the date of entry into force of the Agreement, initial r^ula-

102 STAT. 1854

PUBLIC LAW 100-449—SEPT. 28, 1988

tions to c a n y out that action shall, to the maximum extent feasible,
be issued within 1 year after such effective date.
(e) CHANGES IN STATUTES To IMPLEMENT A REQUIREMENT, AMENDMENT, OR RECOMMENDATION.—The provisions of section 3(c) of the

Trade Agreements Act of 1979 (19 U.S.C. 2504(c)) shall apply as if
the Agreement were an agreement approved under section 2(a) of
that Act whenever the President determines that it is necessary or
appropriate to amend, repeal, or enact a statute of the United States
in order to implement any requirement of, amendment to, or recommendation, finding or opinion under, the Agreement; but such
provisions shall not apply to any bill to implement any such requirement, amendment, recommendation, finding, or opinion that is
submitted to the Congress after the close of the 30th month after the
month in which the Agreement enters into force.
SEC. 103. CONSULTATION AND LAY-OVER REQUIREMENTS FOR, AND
EFFECTIVE DATE OF, PROCLAIMED ACTIONS.
(a) CONSULTATION AND LAY-OVER REQUIREMENTS.—If a provision of

Reports.

Federal
Register,
publication.

this Act provides that the implementation of an action by the
President by proclamation is subject to the consultation and lay-over
requirements of this section, such action may be proclaimed only
if—
(1) the President has obtained advice regarding the proposed
action from—
(A) the appropriate advisory committees established
under section 135 of the Trade Act of 1974, and
(B) the United States International Trade Commission;
(2) the President has submitted a report to the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate that sets forth—
(A) the action proposed to be proclaimed and the resisons
therefor, and
(B) the advice obtained under paragraph (1);
(3) a period of at least 60 calendar days that begins on the first
day on which the President has met the requirements of paragraphs (1) and (2) with respect to such action has expired; and
(4) the President has consulted with such Committees regarding the proposed action during the period referred to in paragraph (3).
(b) EFFECTIVE DATE OF CERTAIN PROCLAIMED ACTIONS.—No action
proclaimed by the President under the authority of this Act, if such
action is not subject to the consultation and lay-over requirements
under subsection (a), may take effect before the 15th day after the
date on which the text of the proclamation is published in the
Federal Register.
SEC. 104. HARMONIZED SYSTEM.

Tariff Schedules
of the U.S.

(a) DEFINITION.—As used in this Act, the term "Harmonized
System" means the nomenclature system established under the
International Convention on the Harmonized C!ommodity Description and Coding System (done at Brussels on June 14, 1983, and the
protocol thereto, done at Brussels on June 24, 1986) as implemented
under United States law.
(b) INTERIM APPUCATION OF T S U S . — T h e following apply if the
International Convention, and the protocol thereto, referred to in
subsection (a) are not implemented under United States law before
the Agreement enters into force:

• -~'4g-«^

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1855

(1) The President, subject to subsection (c), shall proclaim President of U.S.
such modifications to the Teiriff Schedules of the United States
(19 U.S.C. 1202) as may be necessary to give effect, until such
time as such Convention and protocol are so implemented, to
the rules of origin, schedule of rate reductions, and other provisions that would, but for the absence of such implementation, be
proclaimed under the authority of this Act to, or in terms of, the
Harmonized Sjrstem to implement the obligations of the United
States under the Agreement.
(2) Until such time as such Convention and protocol are so
implemented, any reference in this Act to the nomenclature of
such Convention and protocol shall be treated as a reference to
the corresponding nomenclature of the Tariff Schedules of the
United States as modified under paragraph (1).
(c) RESTRICTIONS.—

(1) No modification described in subsection ObXD that is to Federal
take effect concurrently with the entry into force of the Agree- Register,
ment may be proclaimed unless the text of the modification is publication.
published in the Federal Register at least 30 days before the
date of entry into force.
(2) All modifications proclaimed under the authority of
subsection (bXD after the Agreement enters into force with
respect to the United States are subject to the consultation and
lay-over requirements of section 103(a).
SEC. 105. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO
FORCE.

Subject to section 103 or 104(c), as appropriate, and any other
applicable restriction or limitation in this Act on the proclaiming of
actions or the issuing of r ^ u l a t i o n s to carry out this Act or any
amendment made by this Act, after the date of the enactment of this
Act—
(1) the President may proclaim such actions; and
(2) other appropriate officers of the United States Government may issue such r^ulations;
as may be necessary to ensure that any provision of this Act, or
amendment made by this Act, that takes effect on the date the
Agreement enters into force is appropriately implemented on such
date, but no such proclamation or regulation may have an effective
date earlier than the date of entry into force.

TITLE
II—TARIFF
MODIFICATIONS, 19 use 2112
RULES OF ORIGIN, USER FEES, DRAW- '^°*"
BACK, ENFORCEMENT, AND OTHER
CUSTOMS PROVISIONS
SEC. 201. TARIFF MODIFICATIONS.
(a) TARIFF MODIFICATIONS SPECIFIED IN THE AGREEMENT.—^The

President may proclaim—
(1) such modifications or continuance of any existing duty;
(2) such continuance of existing duty-free or excise treatment;
or
(3) such additional duties;

102 STAT. 1856

PUBLIC LAW 100-449—SEPT. 28, 1988

as the President determines to be necessary or appropriate to carry
out article 401 of the Agreement and the schedule of duty reductions
with respect to Canada set forth in Annexes 401.2 and 401.7 to the
Agreement, as approved under section lOl(aXl). For purposes of
proclaiming necessary modifications under such Annex 401.2, any
article covered under subheading 9813.00.05 (contained in the
United States Schedule in such Annex) shall, unless such article is a
drawback eligible good under section 204(a), be treated as being
subject to any otherwise applicable customs duty if the article, or
merchandise incorporating such article, is exported to Canada.
(b) OTHER TARIFF MODIFICATIONS.—Subject to the consultation
and lay-over requirements of section 103(a), the President may
proclaim—
(1) such modifications as the United States and Canada may
agree to regarding the staging of any duty treatment set forth
in Annexes 401.2 and 401.7 of the Agreement;
(2) such modifications or continuance of any existing duty;
(3) such continuance of existing duty-free or excise treatment;
or
(4) such additional duties;
as the President determines to be necessary or appropriate to
maintain the general level of reciprocal and mutually advantageous
concessions with respect to Canada provided for by the Agreement.
(c) MODIFICATIONS AFFECTING PLYWOOD.—

President of U.S.
Reports.

(1) The Congress encourages the President to facilitate the
preparation, and the implementation with Canada, of common
performance standards for the use of softwood plywood and
other structural panels in construction applications in the
United States and Canada.
(2) The President shall report to the Congress on the incorporation of common plywood performance standards into building
codes in the United States and Canada and may implement the
provisions of article 2008 of the Agreement when he determines
that the necessary conditions have been met.
(3) Any tariff reduction undertaken pursuant to paragraph (2)
shall be in equal annual increments ending January 1, 1998,
unless those reductions commence after January 1, 1991.
SEC. 202. RULES OF ORIGIN.
(a) IN GENERAL.—

(1) For purposes of implementing the tariff treatment contemplated under the Agreement, goods originate in the territory of a Party if—
(A) they are wholly obtained or produced in the territory
of either Party or both Parties; or
(B) they—
(i) have been transformed in the territory of either
Party or both Parties so as to be subject to a change in
tariff classification as described in the Annex rules or
to such other requirements as the Annex rules may
provide when no change in tariff classifications occurs,
and
(ii) meet the other conditions set out in the Annex.
(2) A good shall not be considered to originate in the territory
of a party under paragraph (1)(B) merely by virtue of having
undergone—

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1857

(A) simple packaging or, except as expressly provided by
the Annex rules, combining operations;
(B) mere dilution with water or another substance that
does not materially alter the characteristics of the good; or
(C) any process or work in respect of which it is established, or in respect of which the facts as ascertained
clearly justify the presumption, that the sole object was to
circumvent the provisions of chapter 3 of the Agreement.
(3) Accessories, spare parts, or tools delivered with any piece Motor vehicles.
of equipment, machinery, apparatus, or vehicle that form part
of its standard equipment shall be treated as having the same
origin as that equipment, machinery, apparatus, or vehicle if
the quantities and values of such accessories, spare parts, or
tools are customary for the equipment, machuiery, apparatus,
or vehicle.
(b) TRANSSHIPMENT.—(roods exported from the territory of one
Party originate in the territory of that Party only if—
(1) the goods meet the applicable requirements of subsection
(a) and are shipped to the territory of the other Party without
having entered the commerce of any third country;
(2) the goods, if shipped through the territory of a third
country, do not undergo any operation other than unloading,
reloadmg, or any operation necessary to transport them to the
territory of the other Party or to preserve them in good condition; and
(3) the documents related to the exportation and shipment of
the goods from the territory of a Party show the territory of the
other Party as their final destination.
(c) INTERPRETATION.—In interpreting this section, the following
apply:
(1) Whenever the processing or assembly of goods in the
territory of either Party or both Parties results in one of the
changes in tarifT classification described in the Annex rules,
such goods shall be considered to have been transformed in the
territory of that Party and shall be treated as goods originating
in the territory of that Party if^
(A) such processing or assembly occurs entirely within
the territory of either Party or both Parties; and
(B) such goods have not subsequently undergone any
processing or assembly outside the territories of the Parties
that improves the goods in condition or advances them in
value.
(2) Whenever the assembly of goods in the territory of a Party
fails to result in a change of tariff classification because
either—
(A) the goods were imported into the territory of the
Party in an unassembled or a disassembled form and were
classified as unassembled or disassembled goods pursuant
to General Rule of Interpretation 2(a) of the Harmonized
System; or
(B) the tariff subheading for the goods provides for both
the goods themselves and their parts;
such goods shall not be treated as goods originating in the
territory of a Party.
(3) Notwithstanding paragraph (2), goods described in that
paragraph shall be considered to have been transformed in the

102 STAT. 1858

PUBLIC LAW 100-449—SEPT. 28, 1988
territory of a Party and be treated as goods originating in the
territory of the Party if—
(A) the value of materials originating in the territory of
either Party or both Parties used or consumed in the
production of the goods plus the direct cost of assembling
the goods in the territory of either Party or both Parties
constitute not less than 50 percent of the value of the goods
when exported to the territory of the other Party; and
(B) the goods have not subsequent to assembly undergone
processing or further assembly in a third country and they
meet the requirements of subsection (b).
(4) The provisions of paragraph (3) shall not apply to goods of
chapters 61-63 of the Harmonized System.
(5) In making the determination required by paragraph (3XA)
and in making the same or a similar determination when
required by the Annex rules, where materials originating in the
territory of either Party or both Parties and materials obtained
or produced in a third country are used or consumed together in
the production of goods in the territory of a Party, the value of
materials originating in the territory of either Party or both
Parties may be treated as such only to the extent that it is
directly attributable to the goods under consideration.
(6) In applying the Annex rules, a specific rule shall take
precedence over a more general rule.

President of U.S.

(d) ANNEX RULES.—

(1) The President is authorized to proclaim, as a part of the
Harmonized System, the rules set forth under the heading
"Rules" in Annex 301.2 of the Agreement. For purposes of
carrying out this paragraph—
(A) the phrase "headings 2207-2209" in paragraph 7 of
section IV of such Annex 301.2 shall be treated as a reference to headings 2203-2209; and
(B) the phrase "any other heading" in paragraph 11 of
section XV in such Annex 301.2 shall be treated as a
reference to any other heading of chapter 74 of the Harmonized System.
(2) Subject to the consultation and lay-over requirements of
section 103, the President is authorized to proclaim such modifications to the rules as may from time-to-time be agreed to by
the United States and Canada.
(e) AUTOMOTIVE PRODUCTS.—
President of U.S.

Regulations.

(1) The President is authorized to proclaim such modifications
to the definition of Canadian articles (relating to the administration of the Automotive Products Trade Act of 1965) in the
general notes of the Harmonized System as may be necessary to
conform that definition with chapter 3 of the Agreement.
(2) For purposes of administering the value requirement (as
defined in section 304(cX3)) with respect to vehicles, the Secretary of the Treasury shall prescribe regulations governing the
averaging of the value content of vehicles of the same class, or
of sister vehicles, assembled in the same plant as an alternative
to the calculation of the value content of each vehicle.
(0 DEFINITIONS.—For purposes of this section:
(1) The term "Annex ' means—
(A) the interpretative guidelines set forth in subsection
(c); and
(B) the Annex rules.

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1859

(2) The term "Annex rules" means the rules proclaimed
under subsection (d).
(3) The term "direct cost of processing or direct cost of assembling" means the costs directly incurred in, or that can reasonably be allocated to, the production of goods, including—
(A) the cost of all labor, including benefits and on-the-job
training, labor provided in connection with supervision,
quality control, shipping, receiving, storage, packaging,
management at the location of the process or assembly, and
other like labor, whether provided by employees or
independent contractors;
(B) the cost of inspecting and testing the goods;
(C) the cost of energy, fuel, dies, molds, tooling, and the
depreciation and maintenance of machinery and equipment, without regard to whether they originate within the
territory of a Party;
(D) development, design, and engineering costs;
(E) rent, mortgage interest, depreciation on buildings,
property insurance premiums, maintenance, taxes and the
cost of utilities for real property used in the production of
goods; and
(F) royalty, licensing, or other like payments for the right
to the goods;
but not including—
(i) costs relating to the general expense of doing
business, such as the cost of providing executive, financial, sales, advertising, marketing, accounting and legal
services, and insurance;
(ii) brokerage charges relating to the importation and
exportation of goods;
(iii) the costs for telephone, mail, and other means of
communication;
(iv) packing costs for exporting the goods;
(v) royalty payments related to a licensing agreement
to distribute or sell the goods;
(vi) rent, mortgage interest, depreciation on buildings, property insurance premiums, maintenance,
taxes, and the cost of utilities for real property used by
personnel charged with administrative functions; or
(vii) profit on the goods.
(4) The term "goods wholly obtained or produced in the
territory of either Party or both Parties" means—
(A) mineral goods extracted in the territory of either
Party or both Parties;
(B) goods harvested in the territory of either Party or
both Parties;
(C) live animals born and raised in the territory of either
Party or both Parties;
(D) goods (fish, shellfish, and other marine life taken
from the sea by vessels registered or recorded with a Party
and flying its flag;
(E) goods produced on board factory ships from the goods
referred to in subparagraph (D) provided such factory ships
are registered or recorded with that Party and fly its flag;
(F) goods taken by a Party or a person of a Party from the
seabed or beneath the seabed outside territorial waters,
provided that Party has rights to exploit such seabed;

102 STAT. 1860

PUBLIC LAW 100-449—SEPT. 28, 1988
(G) goods taken from space, provided they are obtained by
a Party or a person of a Party and not processed in a third
country;
(H) waste and scrap derived from manufacturing operations and used goods, provided they were collected in the
territory of either Party or both Parties and are fit only for
the recovery of raw materials; and
(I) goods produced in the territory of either Party or both
Parties exclusively from goods referred to in subparagraphs
(A) to (H) inclusive or from their derivatives, at any stage of
production.
(5) The term "materials" means goods, other than those
included as part of the direct cost of processing or assembling,
used or consumed in the production of other goods.
(6) The term "Party" means Canada or the United States.
(7) The term "territory" means—
(A) with respect to Canada, the territory to which its
customs laws apply, including any areas beyond the territorial seas of Canada within which, in accordance with
international law and its domestic laws, Canada may exercise rights with respect to the seabed and subsoil and their
natural resources; and
(B) with respect to the United States—
(i) the customs territory of the United States, which
includes 4he fifty States, the District of Columbia and
the Commonwealth of Puerto Rico,
(ii) the foreign trade zones located in the United
States, and the Commonwealth of Puerto Rico, and
(iii) any area beyond the territorial seas of the United
States within which, in accordance with international
law and its domestic laws, the United States may
exercise rights with respect to the seabed and subsoU
and their natural resources.
(8) The term "third country" means any country other than
Canada or the United States or any territory not a part of the
territory of either.
(9) The term "value of materials originating in the territory of
eitiier Party or both Parties" means the aggregate of—
(A) the price paid by the producer of an exported good for
materials originating in the territory of either Party or
both Parties or for materials imported from a third country
used or consumed in the production of such originating
materials; and
(B) when not included in that price, the following costs
related thereto—
(i) fi*eight, insurance, packing, and all other costs
incurred in transporting any of the materials referred
to in subparagraph (A) to the location of the producer;
(ii) duties, taxes, and brokerage fees on such materials paid in the territory of ei^er Party or both
Parties;
"^
(iii) the cost of waste or spoUage resulting from the
use or consumption of such materials, less the value of
renewable scrap or byproduct; and
(iv) the value of goods and services relating to such
materials determined in accordance with subparagraph
1(b) of article 8 of the Agreement on Implementation of

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1861

article VII of the General Agreement on Tariffs and
Trade.
(10) The term "value of the goods when exported to the
territory of the other Party" means the aggregate of—
(A) the price paid by the producer for all materials,
whether or not the materials originate in either Party or
both Parties, and, when not included in the price paid for
the materials, the costs related to—
(i) freight, insurance, packing, and all other costs
incurred in transporting all materials to the location of
the producer;
(ii) duties, taxes, and brokerage fees on all materials
psdd in the territory of either Party or both Parties;
(iii) the cost of waste or spoilage resulting from the
use or consumption of such materials, less the value of
renewable scrap or byproduct; and
(iv) the value of goods and services relating to all
materials determined in accordance with subparagraph
1(b) of article 8 of the Agreement on Implementation of
article VII of the Greneral Agreement on Tariffs and
Trade; and
(B) the direct cost of processing or the direct cost of
assembling the goods.
(g) SPECIAL PROVISION REGARDING APPUCATION OF RULES OF
ORIGIN TO CJERTAIN APPAREL.—The Secretary of Commerce is au-

thorized to issue regulations governing the exportation to Canada of
apparel products that are cut, or knit to shape, and sewn, or
otherwise assembled, in either Party from fabric produced or obtained in a third country for the purpose of establishing which
exports of such products shall be permitted to claim preferential
tariff treatment under the rules of origin of the Agreement, to the
extent that the Agreement provides for quantitative limits on the
availability of preferential tariff treatment for such products.
SEC. 203. CUSTOMS USER FEES.

Section 13031(b) of the Consolidated Omnibus Reconciliation Act
of 1985 (19 U.S.C. 58c(b)) is amended by adding at the end thereof the
following new paragraph:
"(10) The fee charged under subsection (aXlO) of this section with
respect to goods of Canadian origin (as determined under section 202
of the United States-Canada Free-Trade Agreement Implementation
Act of 1988) shall be in accordance with article 403 of the United
States-Canada Free-Trade Agreement. Any service for which an
exemption from such fee is provided by reason of this paragraph
may not be funded with money contained in the Customs User Fee
Account.".
SEC. 204. DRAWBACK.

(a) DEFINITION.—For purposes of this section, the term "drawback
eligible goods" means—
(1) goods provided for under paragraph 8 of article 404 of the
Agreement;
(2) goods provided for under paragraphs 4 and 5 of such
article; and
(3) goods other than those referred to in paragraphs (1) and (2)
that the United States and Canada agree are not subject to
paragraphs 1, 2, and 3 of such article.

Regulations.

102 STAT. 1862

PUBLIC LAW 100-449—SEPT. 28, 1988

No drawback may be paid with respect to countervailing duties or
antidumping duties imposed on drawback eligible goods.
President of U.S.
(b) IMPLEMENTATION OF ARTICLE 404.—The President is
authorized—
(1) to proclaim the identity, in accordance with the nomenclature of the Harmonized System, of goods referred to in
subsection (aXD; and
(2) subject to the consultation and lay-over requirements of
section 103(a), to proclaim—
(A) the identity, in accordance with the nomenclature of
the Harmonized System, of goods referred to in subsection
(a)(3); and
(B) a delay in the taking effect of article 404 of the
Agreement to a date later than January 1, 1994, with
respect to any merchandise if the United States and
Canada agree to the delay under paragraph 7 of such
article.
(c) CONSEQUENTIAL AMENDMENTS.—
(1) BONDED MANUFACTURING WAREHOUSES.—Section 311 of the

Tariff Act of 1930 (19 U.S.C. 1311) is amended by adding at the
end thereof the following new paragraph:
"No article manufactured in a bonded warehouse, except to the
extent that such article is made from an article that is a drawback
eligible good under section 204(a) of the United States-Canada FreeTrade Agreement Implementation Act of 1988, may be withdrawn
from such warehouse for exportation to Canada on or after January
1, 1994, or such later date as may be proclaimed by the President
under section 2040t>)(2)(B) of such Act of 1988, without payment of a
duty on such imported merchandise in its condition, and at the rate
of duty in effect, at the time of importation.".
(2) BONDED SMELTING AND REFINING WAREHOUSES.—Section

312 of the Tariff Act of 1930 (19 U.S.C. 1312) is further
amended—
(A) by inserting after "exportation" in each of paragraphs
(1) and (4) of subsection (b) the following: "(other than
exportation to Canada on or after January 1, 1994, or such
later date as may be proclaimed by the President under
section 204(bX2XB) of the United States-Canada Free-Trade
Agreement Implementation Act of 1988, except to the
extent that the metal-bearing materials were of Canadian
origin as determined in accordance with section 202 of such
Act of 1988)"; and
(B) by inserting after "exportation" in subsection (d) the
following: "(other than exportation to Canada on or after
January 1, 1994, or such later date as may be proclaimed by
the President under section 204(bX2XB) of the United
States-Canada Free-Trade Agreement Implementation Act
of 1988, except to the extent that the product is a drawback
eligible good under section 204(a) of such Act of 1988)".
(3) DRAWBACK.—Section 313 of the Tariff Act

of 1930

(19

U.S.C. 1313) is amended by adding at the end thereof the
following new subsections:
"(n) For purposes of subsections (a), (b), (f), (h), and (jX2), the
shipment on or after January 1, 1994, or such later date as may be
proclaimed by the President under section 204(bX2XB) of the United
States-Canada Free-Trade Agreement Implementation Act of 1988,
to Canada of an article made from or substituted for, as appropriate,

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1863

a drawback eligible good under section 204(a) of such Act of 1988
does not constitute an exportation.
"(o) For purposes of subsection (g), vessels built for Canadian
account and ownership, or for the Government of Canada, may not
be considered to be built for any foreign account and ownership, or
for the government of any foreign country, except to the extent that
the materials in such vessels are drawback eligible goods under
section 204(a) of the United States-Canada Free-Trade Agreement
Implementation Act of 1988.".

Maritime
affairs.

(4) MANIPULATION IN WAREHOUSE.—The second sentence of

section 562 of the Tariff Act of 1930 (19 U.S.C. 1562) is amended
by striking out the proviso thereto and the colon preceding such
proviso and inserting the following: "; except that upon permission therefor being granted by the Secretary of the Treasury,
and under customs supervision, at the expense of the proprietor,
merchandise may be cleaned, sorted, repacked, or otherwise
changed in condition, but not manufactured, in bonded warehouses established for that purpose and be withdrawn therefrom without payment of duties—
"(1) for exportation to Canada, but on or after January 1,
1994, or such later date as may be proclaimed by the
President under section 2040t)X2XB) of the United StatesCanada Free-Trade Agreement Implementation Act of 1988,
such exemption from the payment of duties applies only in
the case of the exportation to Canada of merchandise that—
"(A) is only cleaned, sorted, or repacked in a bonded
warehouse, or
"(B) is a drawback eligible good under section 204(a)
of such Act of 1988;
"(2) for exportation to any foreign country except Canada;
and
"(3) for shipment to the Virgin Islands, American Samoa,
Wake Island, Midway Island, Kingman Reef, Johnston
Island or the island of Guam.
Merchandise may be withdrawn from bonded warehouse for
consumption, or for exportation to Canada if the duty exemption under paragraph (1) of the preceding sentence does not
apply, upon the payment of duties accruing thereon, in its
condition and quantity, and at its weight, at the time of withdrawal from warehouse, with such additions to or deductions
from the final appraised value as may be necessary by reason of
change in condition.".
(5) FOREIGN TRADE ZONES.—Section 3(a) of the Act of June 18,
1934 (commonly known as the "Foreign Trade Zones Act"; 19
U.S.C. 81c) is further amended by adding before the period at
the end thereof the following: "Provided, further, That with the
exception of drawback eligible goods under section 204(a) of the
United States-Canada Free-Trade Agreement Implementation
Act of 1988, no article manufactured or otherwise changed in
condition (except a change by cleaning, testing or repacking)
shall be exported to Canada on or after January 1,1994, or such
later date as may be proclaimed by the President under section
204(bX2)(B) of such Act of 1988, without the payment of a duty
that shall be payable on the article in its condition and quantity, and at its weight, at the time of its exportation to Canada
unless the privilege in the first proviso to this subsection was
requested.".

Territories, U.S.

102 STAT. 1864

PUBLIC LAW 100-449—SEPT. 28, 1988

SEC. 205. ENFORCEMENT.
Records.

Fraud.

(a) CERTIFICATIONS OF ORIGIN.—

(1) Any person that certifies in writing that goods exported to
Canada meet the rules of origin under section 202 of the United
States-Canada Free-Trade Agreement Implementation Act of
1988 shall provide, upon request by any customs official, a copy
of that certification.
(2) Any person that fails to provide a copy of a certification
requested under paragraph (1) shall be liable to the United
States for a civil penalty not to exceed $10,000.
(3) Any person that certifies falsely that goods exported to
Canada meet the rules of origin under such section 202 shall be
liable to the United States for the same civil penalties provided
under section 592 of the Tariff Act of 1930 (19 U.S.C. 1592) for a
violation of section 592(a) of such Act by fraud, gross negligence,
or negligence, as the case may be. The procedures and provisions of section 592 of such Act that are applicable to a violation
under section 592(a) of such Act shall apply with respect to such
false certification.
(b) RECORDKEEPING REQUIREMENTS.—Section 508 of the Tariff Act
of 1930 (19 U.S.C. 1508) is amended—
(1) by redesignating subsections (b) and (c) as subsections (c)
and (d), respectively;
(2) by inserting "and (b)" after "(a)" in subsection (c), as so
redesignated;
(3) by adding after subsection (a) the following new subsection:
"(b) Any person who exports, or who knowingly causes to be
exported, any merchandise to Canada shall make, keep, and render
for examination and inspection such records (including certifications
of origin or copies thereof) which pertain to such exportations."; and
(4) by adding at the end thereof the following new subsection:
"(e) Any person who fails to retain records required by subsection
(b) or the regulations issued to implement that subsection shall be
liable to a civil penalty not to exceed $10,000.".
SEC. 206. EXEMPTION FROM LOTTERY TICKET EMBARGO.

Effective date.

Section 305(a) of the Tariff Act of 1930 (19 U.S.C. 1305(a)) is
amended by striking out the period at the end of the first paragraph
and inserting the folloMring: ": Provided further. That effective
January 1, 1993, this section shall not apply to any lottery ticket,
printed paper that may be used as a lottery ticket, or advertisement
of any lottery, that is printed in Canada for use in connection with a
lottery conducted in the United States.".
SEC. 207. PRODUCTION-BASED DUTY REMISSION
RESPECT TO AUTOMOTIVE PRODUCTS.

PROGRAMS

WITH

(a) USTR STUDY.—The United States Trade Representative
shall—
(1) undertake a study to determine whether any of the production-based duty remission programs of Canada with respect to
automotive products is either—
(A) inconsistent with the provisions of, or otherwise
denies the benefits to the United States under, the General
Agreement on Tariffs and Trade, or
(B) being implemented inconsistently with the obligations
under article 1002 of the Agreement not—
(i) to expand the extent or the application, or

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1865

(ii) to extend the duration,
of such programs; and
(2) determine whether to initiate an investigation under section 302 of the Trade Act of 1974 with respect to any of such
production-based duty remission programs.
0)) REPORT AND MONITORING.—

(1) The United States Trade Representative shall submit a
report to Congress no later than June 30,1989 (or no later than
September 30, 1989, if the Trade Representative considers an
extension to be necessary) containing—
(A) the results of the study under subsection (aXD, as well
as a description of the basis used for measuring and verifying compliance with the obligations referred to in subsection (aXlXB); and
(B) any determination made under subsection (aX2) and
the reasons therefor.
(2) Notwithstanding the submission of the report under paragraph (1), the Trade Representative shall continue to monitor
the degree of compliance with the obligations referred to in
subsection (aXlXB).

TITLE III—APPLICATION OF AGREEMENT
TO SECTORS AND SERVICES

19 u s e 2112
note.

SEC. 301. AGRICULTURE.
(a)
SPECIAL
VEGETABLES.—

TARIFF

PROVISIONS

FOR

FRESH

FRUITS

AND

(1) The Secretary of Agriculture (hereafter in this section
referred to as the "Secretary") may recommend to the President
the imposition of a temporary duty on any Canadian fresh fruit
or vegetable entered into the United States if the Secretary
determines that both of the following conditions exist at the
time that imposition of the duty is recommended:
(A) For each of 5 consecutive working days the import
price of the Canadian fresh fruit or vegetable is below 90
percent of the corresponding 5-year avergige monthly
import price for such fruit or vegetable.
(B) The planted acreage in the United States for the like
fresh fruit or vegetable is no higher than the average
planted acreage over the preceding 5 years, excluding the
years with the highest and lowest acreage. For the purposes
of applying this subpar^raph, any acreage increase attributed directly to a reduction in the acreage that w£is planted
to wine grapes as of October 4, 1987, shall be excluded.
Whenever the Secretary makes a determination that the condi- Federal
tions referred to in subparagraphs (A) and (B) regarding any Register,
Canadian fresh fruit or vegetable exist, the Secretary shall Publication.
promptly submit for publication in the Federal Register notice
of the determination.
(2) In determining whether to recommend the imposition of a
temporary duty to the President under par£igraph (1), the Secretary shall consider whether the conditions in subparagraphs
(A) and (B) of such paragraph have led to a distortion in trade
between the United States and Canada of the fresh fruit or
vegetable and, if so, whether the imposition of the duty is

102 STAT. 1866

President of U.S.

Termination
date.

PUBLIC LAW 100-449—SEPT. 28, 1988
appropriate, including consideration of whether it would significantly correct this distortion.
(3) Not later than 7 days after receipt of a recommendation of
the Secretary under paragraph (1), the President, after taking
into account the national economic interests of the United
States, shaU determine whether to impose a temporary duty on
the Canadian fresh fruit or v^etable concerned. If the determination is affirmative, the President shall proclaim the imposition and the rate of the temporary duty, but such duty shall
not apply to the entry of articles that were in transit to the
United States on the fost day on which the temporary duty is in
effect.
(4) A temporary duty imposed under paragraph (3) shall cease
to apply with respect to articles that are entered on or after the
earlier of—
(A) the day following the last of 5 consecutive working
days with respect to which the Secretary determines that
the point of shipment price in Canada for the Canadian
fruit or v^etable concerned exceeds 90 percent of the
corresponding 5-year average monthly import price; or
(B) the 180th day after the date on which the temporary
duty first took effect.
(5) No temporary duty may be imposed under this subsection
on a Canadian fresh fruit or vegetable during such time as
import relief is provided with respect to such fresh fruit or
v^etable under chapter 1 of title II of the Trade Act of 1974.
(6) For purposes of this subsection:
(A) The term "Canadian fresh fruit or vegetable" means
any article originating in Canada (as determined in accordance with section 202) and classified within any of the
following headings of the Harmonized S3rstem:
(i) 07.01 (relating to potatoes, fresh or chilled);
(ii) 07.02 (relating to tomatoes, fresh or chilled);
(iii) 07.03 (relating to onions, shallots, garlic, leeks
and other alliaceous vegetables, fresh or chilled);
(iv) 07.04 (relating to cabbages, cauliflowers, kohlrabi,
kale and similar edible brassicas, fresh or chilled);
(v) 07.05 (relating to lettuce (lactuca sativa) and chicory (cichorium spp.), fresh or chilled);
(vi) 07.06 (relating to carrots, salad beets or beetroot,
salsify, celeriac, radishes and similar edible roots
(excluding turnips), fresh or chilled);
(vii) 07.07 (relating to cucumbers and gherkins, fresh
or chilled);
(viii) 07.08 (relating to leguminous vegetables, shelled
or unshelled, fresh or chilled);
(ix) 07.09 (relating to other v^etables (excluding truffles), fresh or chilled);
(x) 08.06.10 (relating to grapes, fresh);
(xi) 08.08.20 (relating to pears and quinces, fresh);
(xii) 08.09 (relating to apricots, cherries, peaches
(including nectarines), plums and sloes, fresh); and
(xiii) 08.10 (relating to other fruit (excluding cranberries and blueberries), fresh).
(B) The term "corresponding 5-year average monthly
import price" for a particular day means the average
import price of a Canadian fresh fruit or v^etable, for the

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1867

calendar month in which that day occurs, for that month in
each of the preceding 5 years, excluding the years with the
highest and lowest monthly averages.
(C) The term "import price" h£is the meaning given such
term in article 711 of the Agreement.
(D) The rate of a temporary duty imposed under this
subsection with respect to a Canadian fresh fruit or vegetable means a rate that, including the rate of any other duty
in effect for such fruit or vegetable, does not exceed the
lesser of—
(i) the duty that was in effect for the fresh fruit or
vegetable before January 1, 1989, under column one of
the Tariff Schedules of the United States for the applicable season in which the temporary duty is applied;
or
(ii) the duty in effect for the fresh fruit or vegetable
under column one of such Schedules, or column 1
(General) of the Harmonized System, at the time the
temporary duty is applied.
(7XA) The Secretary shall, to the extent practicable, administer the provisions of this subsection to the 8-digit level of
classification under the Harmonized System.
(B) The Secretary may issue such regulations as may be
necessary to implement the provisions of this subsection.
(8) For purposes of assisting the Secretary in carrying out this
suljsection, the Commissioner of Customs and the Director of
the Bureau of Census shall cooperate in providing the Secretary
with timely information and data relating to the importation of
Canadian fresh fruits and vegetables.
(9) The authority to impose temporary duties under this
subsection expires on the 20th anniversary of the date on which
the Agreement enters into force.
OJ) MEAT IMPORT ACT OF 1979.—The Meat Import Act of 1979 (19
U.S.C. 2253 note) is amended—
(1) by inserting at the end of subsection (bX2) the following
flush sentence:
"Such term does not include any article described in subparagraph (A), (B), or (C) originating in Canada (as determined in
accordance with section 202 of the United States-Canada FreeTrade Agreement Implementation Act of 1988).";
(2) by striking out '^ 1,204,600,000" in subsection (c) and inserting "1,147,600,000";
(3) by striking out "1,250,000,000 pounds" in subsection (fXD
and inserting "(A) 1,193,000,000 pounds if no import limitation
on Canadian products is in effect under subsection (1), or (B)
1,250,000,000 pounds if an import limitation on Canadian products is in effect under subsection (1)";
(4) by inserting "other than Canada" after "countries" each
place it appears in subsection (i); and
(5) by amending subsection (1) to read £is follows:
"a) If the President—
"(l)has—
"(A) proclaimed limitations on meat articles under the
preceding provisions of this section, or
"(B) entered into one or more agreements other than with
Canada regarding meat articles pursuant to section 204 of
the Agricultural Act of 1956; and

Tariff Schedules
oftheU.S.

Termination
date.

102 STAT. 1868

Diseases.
Hazardous
materials.

PUBLIC LAW 100-449—SEPT. 28, 1988

"(2) determines that the Government of Canada has not taken
equivalent action;
the President may by proclamation limit the total quantities of
articles described in subsection (bX2) (A), (B), and (C) and originating
in Canada (as determined in accordance with section 202 of the
United States-Canada Free-Trade Agreement Implementation Act
of 1988) that may enter the United States. A limitation imposed
under the preceding sentence shall be only to the extent that, and
only for such period of time as, the President determines sufficient
to prevent frustration of the limitations placed on meat articles
imported from other countries under this section or actions taken
with respect to meat articles under agreements negotiated pursuant
to section 204 of the Agricultural Act of 1956.".
(c) AGRICULTURAL ADJUSTMENT ACT.—Section 22(f) of the Agricultural Adjustment Act, as reenacted with amendments by the Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 624(f)), is
amended by inserting immediately after "section" the following:
"; except that the President may, pursuant to articles 705.5 and 707
of the United States-Canada Free-Trade Agreement, exempt products of Canada from any import restriction imposed under this
section".
(d) IMPORTATION OP ANIMAL VACCINES.—The second sentence of
the eighth paragraph of the matter under the heading "BUREAU
OF ANIMAL INDUSTRY" of the Act of March 4,1913 (37 Stat. 832,
chapter 145; 21 U.S.C. 152) is amended to read as follows: "The
importation into the United States of any virus, serum, toxin, or
analogous product for use in the treatment of domestic animals, and
the importation of any worthless, contaminated, dangerous, or
harmful virus, serum, toxin, or analogous product for use in the
treatment of domestic animals, is prohibited without (1) a permit
from the Secretary of Agriculture, or (2) in the case of an article
originating in Canada, such permit or, in lieu of such permit, such
certification by Canada as may be prescribed by the Secretary of
Agriculture.".
(e) IMPORTATION OP SEEDS.—Subsection (e) of section 302 of the

Federal Seed Act (7 U.S.C. 1582(e)) is amended to read as follows:
"(e) The provisions of this title requiring certain seeds to be
stained shall not apply—
"(1) to alfalfa or clover seed originating in Canada, or
"(2) when seeds otherwise required to be stained will not be
sold within the United States and will be used for seed production only by or for the importer or consignee and the importer
of record or consignee files a statement in accordance with the
rules and regulations prescribed under section 402 certifying
that such seeds will be used only for seed production by or for
the importer or consignee.".
Hazardous
materials.

Pests and
pesticides.

(f) PLANT AND ANIMAL HEALTH REGULATIONS.—

(1) Section 103 of the Federal Plant Pest Act (7 U.S.C. 150bb)
is amended—
(A) in subsection (a), by striking out "No" and inserting
in lieu thereof "Except as provided in subsection (c), no';
and
(B) by adding at the end thereof the following new
subsection:
"(c) No person shall move any plant pest from Canada into or
through the United States or accept delivery of any plant pest
moving from Canada into or through the United States, unless such

"a^f!.*?

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1869

movement is made in accordance with such regulations as the
Secretary may promulgate under this section to prevent the dissemination into the United States of plant pests.".
(2) Section 104 of the Federal Plant Pest Act (7 U.S.C. 150cc) is
amended—
(A) in subsection (a), by striking out "Any letter" and
inserting in lieu thereof "Except as provided in subsection
0>), any letter";
(B) by redesignating subsections 0)) and (c) as subsections
(c) and (d), respectively; and
(C) by inserting after subsection (a) the following new
subsection:
"OJ) Any letter, parcel, box, or other package from Canada
containing any plant pest, whether sealed as letter-rate postal
matter or not, is declared to be nonmailable, and shall not knowingly be conveyed in the mail or delivered from any post office or by
any mail carrier, except in accordance with such regulations as the
Secretary may promulgate under this section to prevent the dissemination into the United States of plant pests.".
(3) The Act of August 20, 1912 (37 Stat. 315, chapter 308;
7 U.S.C. 154 et seq.) is amended—
(A) in the first section (7 U.S.C. 154), by striking out
"Provided" the first place it appears and inserting in lieu
thereof "Provided, That the Secretary of Agriculture may
waive the permit requirement for nursery stock imported
or offered for entry from Canada: Provided further'; and
(B) by adding at the end of section 2 (7 U.S.C. 156) the
following new sentence: "This section shall not apply to
nursery stock that arrives from, or is imported from,
Canada.".
(4) Subsection (a) of section 4 of the Federal Noxious Weed Act
of 1974 (7 U.S.C. 2803(a)) is amended to read as follows:
"(a) No person shall knowingly move any noxious weed identified
in a regulation promulgated by the Secretary into or through the
United States or interstate, unless such movement is—
"(1) from Canada, or authorized under general or specific
permit from the Secretary; and
"(2) made in accordance with such conditions as the Secretary
may prescribe in the permit and in such regulations as the
Secretary may prescribe under this Act to prevent the dissemination into the United States, or interstate, of such noxious
(5) Section 306 of the Tariff Act of 1930 (19 U.S.C. 1306) is
amended by inserting after subsection (a) the following new
subsection:
"(b) Notwithstanding subsection (a), the Secretary of Agriculture
may permit, subject to such terms and conditions as the Secretary of
Agriculture determines appropriate, the importation of cattle,
sheep, or other ruminants, or swine (including embryos of such
animals) or the fresh, chilled, or frozen meat of such animals from a
region of Canada notwithstanding the existence of rinderpest or
foot-and-mouth disease in Canada, if—
"(1) the United States and Canada have entered into an
agreement delineating the criteria for recognizing that a geographical region of either country is free from rinderpest or
foot-and-mouth disease; and

10-101 n—91—Part '.

Mail.
Pests and
pesticides.

Meat.
Diseases.

102 STAT. 1870

PUBLIC LAW 100-449—SEPT. 28, 1988
"(2) the appropriate official of the government of Canada
certifies that the region of Canada from which the animal or
meat originated is free from rinderpest and foot-and-mouth
disease.".

SEC. 302. RELIEF FROM IMPORTS.
(a) RELIEF FROM IMPORTS OF CANADIAN ARTICLES.—

Reports.

Public
information.
Classified
information.
Federal
Register,
publication.

(1) A petition requesting action under this section for the
purpose of adjusting to the obligations of the United States
under the A^*eement may be filed with the United States
International Trade Commission (hereafter in this section referred to as the "Commission") by an entity, including a trade
association, firm, certified or recognized union, or group of
workers, which is representative of an industry. The Commission shall transmit a copy of any petition filed under this
paragraph to the United States Trade Representative.
(2XA) Upon the filing of a petition under paragraph (1), the
Commission shall promptly initiate an investigation to determine whether, as a result of a reduction or elimination of a duty
provided for under the United States-Canada Free-Trade Agreement, an article originating in Canada is being imported into
the United States in such increased quantities, in absolute
terms, and under such conditions, so that imports of such
Canadian article, alone, constitute a substantial cause of serious
injury to the domestic industry producing an article like, or
directly competitive with, the imported article.
(B) The provisions of—
(i) paragraphs (2), (3), (4), (6), and (7) of subsection (b),
other than paragraph (2XB), and
Cii) subs6ctjioii (c)
of section 201 of the Trade Act of 1974 (19 U.S.C. 2251), as in
effect on June 1,1988, shaU apply with respect to any investigation initiated under subparagraph (A).
(C) By no later than the date that is 120 days after the date on
which an investigation is initiated under subparagraph (A), the
(Dommission shall make a determination under subparagraph
(A) with respect to such investigation.
(D) If the determination made by the (Dommission under
subparagraph (A) with respect to imports of an article is
affirmative, the Commission shall find and recommend to the
President the amount of import relief that is necessary to
remedy the injury found by the Commission in such affirmative
determination, which shall be limited to that set forth in paragraph (3XC).
(EXi) By no later than the date that is 30 da3rs after the date
on which a determination is made under subparagraph (A) with
respect to an investigation, the O)mmission shall submit to the
President a report on the determination and the basis for the
determination. The report shall include any dissenting or separate views and a transcript of the hearings and any briefs which
were submitted to the Commission in the course of the investigation initiated under subparagraph (A).
(ii) Any finding made under subparagraph (D) shall be included in the report submitted to the President under clause (i).
(F) Upon submitting a report to the President under subparagraph (E), the Commission shall promptly make public such
report (with the exception of information which the O)minission

•-^ W i W H ^ ^ I W f W ^ T - T ;4" "

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1871

determines to be confidential) and shall cause a summary
thereof to be published in the Federal Register.
(G) For purposes of this subsection—
(i) The provisions of paragraphs (1), (2), and (3) of section
330(d) of the Tariff Act of 1930 (19 U.S.C. 1330(d)) shall be
applied with respect to determinations and findings made
under this paragraph as if such determinations and findings were made under section 201 of the Trade Act of 1974
(19 U.S.C. 2251).
(ii) The determination of whether an article originates in
Canada shall be made in accordance with section 202
(including any proclamations issued under section 202).
(3XA) By no later than the date that is 30 days after the date President of U.S.
on which the President receives the report of the Commission
containing an affirmative determination made by the Commission under paragraph (2XA), the President shall provide relief
from imports of the article originating in Canada that is the
subject of such determination to the extent that, and for such
time (not to exceed 3 years) as the President determines to be
necessary to remedy the injury found by the Commission.
(B) The President is not required to provide import relief by
reason of this paragraph if the President determines that the
provision of such import relief is not in the national economic
interest.
(C) The import relief that the President is authorized to
provide by reason of this paragraph with respect to an article
originating in Canada is limited to—
(i) the suspension of any further reductions provided for
under the Agreement in the duty imposed on such article
originating in Canada,
(ii) an increase in the rate of duty imposed on such article
originating in Canada to a level that does not exceed the
lesser of—
(I) the most-favored-nation rate of duty that is imposed by the United States on such article from any
other foreign country at the time such import relief is
provided, or
(II) the most-favored-nation rate of duty that is imposed by the United States on such article from any
other foreign country on the day before the date on
which the Agreement enters into force, or
(iii) in the case of a duty applied on a seasonal basis to
such article originating in Canada, an increase in the rate
of duty imposed on such article originating in Canada to a
level that does not exceed the most-favored-nation rate of
duty imposed by the United States on such article originating in Canada for the corresponding season immediately
prior to the date on which the Agreement enters into force.
(4)(A) No investigation may be initiated under paragraph
(2XA) with respect to any article for which import relief has
been provided under this subsection.
(B) No import relief may be provided under this subsection
after the date that is 10 years after the date on which the
Agreement enters into force.
(5) For purposes of section 123 of the Trade Act of 1974 (19
U.S.C. 2133), any import relief provided by the President under

102 STAT. 1872

PUBLIC LAW 100-449—SEPT. 28, 1988
paragraph (3) shall be treated as action taken under chapter I of
title II of such Act.

Business and

(b) R E U E F F R O M IMPORTS F R O M A L L COUNTRIES.—

industry.
Reports.

dXA) If, in any investigation initiated under chapter 1 of title
u of the Trade Act of 1974, the Commission makes an affirmative determination (or a determination which is treated as an
affirmative determination under such chapter by reason of
section 330(d) of the Tariff Act of 1930) that an article is being
imported into the United States in such increased quantities as
to be a substantial cause of serious injury, or the threat thereof,
to the domestic industry, the (Commission shall also find (and
report to the President at the time such injury determination is
submitted to the President), whether imports from Canada of
the article that is the subject of such investigation are substantial and are contributing importantly to such injury or threat
thereof.
(B)(i) In determining under subparagraph (A) whether imports of an article from Canada are substantial, the ([!!ommission
shedl not normally consider imports from Canada in the range
of 5 to 10 percent or less of total imports of such article to be
substantial.
(ii) For purposes of this paragraph, the term "contributing
importantly" means an important cause, but not necessarily the
most important cause, of the serious injury or threat thereof
caused by imports.
(2XA) In determining whether to take action under chapter 1
of title II of the Trade Act of 1974 with respect to imports from
Canada, the President shall determine whether imports from
Canada of such article are substantial and contributing importantly to the serious injury or threat of serious injury found by
the (Commission.
(B) In determining the nature and extent of action to be taken
under chapter 1 of title II of the Trade Act of 1974, the President shall exclude from such action imports from Canada if the
President has made a negative determination under subparagraph (A) regarding imports from Canada.
(3XA) If, under paragraph (2XB), the President excludes imports from Canada from action taken under chapter 1 of title II
of the Trade Act of 1974, the President may, if the President
thereafter determines that a surge in imports from Canada of
the article that is the subject of the action is undermining the
effectiveness of the action, take appropriate action under such
chapter with respect to such imports from Canada to include
such imports in such action.
(BXi) If, under paragraph (2)(B), the President excludes imports from Canada from action taken under chapter 1 of title II
of the Trade Act of 1974, any entity, including a trade association, firm, certified or recognized union, or group of workers,
that is representative of an industry for which such action is
' being taken under such chapter may request the Commission to
conduct an investigation of imports from Canada of the article
that is the subject of such action.
(ii) Upon receiving a request under clause (i), the Commission
shall conduct an investigation to determine whether a surge in
imports from Canada of the article that is the subject of action
being taken under chapter 1 of title II of the Trade Act of 1974
undermines the effectiveness of such action. The Commission

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1873

shall submit the findings of such investigation to the President
by no later than the date that is 30 days after the date on which
such request is received by the Commission.
(C) For purposes of this paragraph, the term "surge" means a
significant increcise in imports over the trend for a reasonable,
recent base period for which data are available,
(c) Any entity that is representative of an industry may submit a
petition for relief under subsection (a), under chapter 1 of title II of
the Trade Act of 1974, or under both subsection (a) and such chapter
at the same time. If petitions are submitted by such an entity under
subsection (a) and such chapter at the same time, the Commission
shall consider such petitions jointly.
SEC. 303. ACTS IDENTIFIED IN NATIONAL TRADE ESTIMATES.

With respect to any act, policy, or practice of Canada that is
identified in the annual report submitted under section 181 of the
Trade Act of 1974 (19 U.S.C. 2241), the United States Trade Representative shall include—
(1) information with respect to the action taken regarding
such act, policy, or practice, including but not limited to—
(A) any action under section 301 of the Trade Act of 1974
(including resolution through appropriate dispute settlement procedures),
(B) any action under section 307 of the Trade and Tariff
Act of 1984, and
(C) negotiations or consultations, whether on a bilatered
or multilateral basis; or
(2) the reasons that no action was taken regarding such act,
policy, or practice.
SEC. 304. NEGOTIATIONS REGARDING CERTAIN SECTORS; BIENNIAL
REPORTS.
(a) IN GENERAL.—

(1) The President is authorized to enter into negotiations with
the Government of Canada for the purpose of concluding an
agreement (including an agreement amending the Agreement)
or agreements to—
(A) liberalize trade in services in accordance with article
1405 of the Agreement;
(B) liberalize investment rules;
(C) improve the protection of intellectual property rights;
(D) incroEise the value requirement applied for purposes
of determining whether an automotive product is treated as
originating in Canada or the United States; and
(E) liberalize government procurement practices, particularly with regard to telecommunications.
(2) As an exercise of the foreign relations powers of the
President under the Constitution, the President will enter into
immediate consultations with the Government of Canada to
obtain the exclusion from the transport rates established under
Canada's Western Grain Transportation Act of agricultural
goods that originate in Canada and are shipped via east coast
ports for consumption in the United States.
Ot») NEGOTIATING OBJECTIVES REGARDING SERVICES, INVESTMENT,
AND INTELLECTUAL PROPERTY RIGHTS.—

President of U.S.

Securities.
Patents and
trademarks.
Motor vehicles.
Contracts.
Communications
and telecommunications.
Transportation.
Agriculture and
agricultural
commodities.

102 STAT. 1874

PUBLIC LAW 100-449—SEPT. 28, 1988
(1) The objectives of the United States in negotiations conducted under subsection (aXlXA) to liberalize trade in services
include—
(A) with respect to developing services sectors not covered
in the Agreement, the elimination of those tariff, nontariff,
and subsidy trade distortions that have potential to affect
significant bilateral trade;
(B) the elimination or reduction of measures grandfathered by the Agreement that deny or restrict national
treatment in the provision of services;
(C) the elimination of local presence requirements; and
(D) the liberalization of government procurement of
services.
In conducting such negotiations, the President shall consult
with the services advisory committees established under section
135 of the Trade Act of 1974 (19 U.S.C. 2155).
(2) The objectives of the United States in any negotiations
conducted under subsection (aXl)(B) to liberalize investment
rules include—
(A) the elimination of direct investment screening;
(B) the extension of the principles of the Agreement to
energy and cultural industries, to the extent such industries are not currently covered by the Agreement;
(C) the elimination of technology transfer requirements
and other performance requirements not currently barred
by the Agreement; and
(D) the subjection of all investment disputes to dispute
resolution under chapter 18 of the Agreement.
In conducting such negotiations, the President shall consult
with persons representing diverse interests in the United States
in investment.
(3) The objectives of the United States in any negotiations
conducted under subsection (aXlXC) to improve the protection of
intellectual property rights include—
(A) the recognition and adequate protection of intellectual property, including copyrights, patents, process patents, trademarks, mask works, and trade secrets; and
(B) the establishment of dispute resolution procedures
and binational enforcement of intellectual property
standards.
In conducting such negotiations, the President shall consult
with persons representing diverse interests in the United States
in intellectual property,
(c) NEGOTIATING OBJECTIVES REGARDING AUTOMOTIVE PRODUCTS.—

(1) In conducting negotiations under subsection (aXlXD)
regarding the value requirement for automotive products, the
President shall seek to conclude an agreement by no later than
January 1, 1990, to increase the vgdue requirement from 50
percent to at least 60 percent.
(2) The President is authorized, through January 1, 1999, to
proclaim any agreed increase in the value requirement.
(3) As used in this section, the term "value requirement"
means the minimum percenta^ge of the value of an automotive
product that must be accounted for by the value of the materials in the product that originated in the United States or
Csuiada, or both, plus the direct cost of processing or assembly

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1875

performed in the United States or Canada, or both, with respect
to the product.
(d) NEGOTIATION OF LIMITATION ON POTATO TRADE.—

(1) During the 5-year period beginning on the date of enactment of this Act, the President is authorized to enter into
negotiations with Canada for the purpose of obtaining an agreement to limit the exportation and importation of all potatoes
between the United States and Canada, including seed potatoes,
fresh, chilled or frozen potatoes, dried, desiccated or dehydrated
potatoes, and potatoes otherwise prepared or preserved. Any
agreement negotiated under this subsection shall provide for an
annual limitation divided equally into each half of the year.
(2) For the purpose of conducting negotiations under paragraph (1), the Secretary of Agriculture and the United States
Trade Representative shall consult with representatives of the
potato producing industry, including the Ad Hoc Potato
Advisory Group and the United States/Canada Horticultural
Industry Advisory Committee, to solicit their views on negotiations with Canada for reciprocal quantitative limits on the
potato trade.
(3) The President is authorized to direct the Secretary of the
Treasury to—
(A) carry out such actions as may be necessary or appropriate to ensure the attainment of the objectives of any
agreement that is entered into under this section; and
(B) enforce any quantitative limitation, restriction, and
other terms contained in the agreement.
Such actions may include, but are not limited to, requirements Records,
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 any article that is subject to the
agreement.
(4) The provisions of section 1204 of the Agriculture and Food
Act of 1981 (7 U.S.C. 1736J) and the last sentence of section 812
of the Agricultural Act of 1970 (7 U.S.C. 612c-3) shall not apply
in the case of actions taken pursuant to this subsection.
(e) CANADIAN CONTROLS ON FISH.—

(1) Within 30 days of the application by Canada of export
controls on unprocessed fish under statutes exempted from the
Agreement under article 1203, or the application of landing
requirements for fish caught in Canadian waters, the President
shall take appropriate action to enforce United States rights
under the General Agreement on Tariffs and Trade that are
retained in article 1205 of the Agreement.
(2) In enforcing the United States rights referred to in paragraph (1), the President has discretion to—
(A) bring a challenge to the offending CanadiEui practices
before the GATT;
(B) retaliate against such offending practices;
(C) seek resolution directly with Canada;
(D) refer the matter for dispute resolution to the CanadaUnited States Trade Commission; or
(E) take other action that the President considers appropriate to enforce such United States rights.
(f) BIENNIAL REPORT.—The President shall submit to the Congress,
at the close of each biennial period occurring after the date on which
the Agreement enters into force, a report regarding—

102 STAT. 1876

PUBLIC LAW 100-449—SEPT 28, 1988
(1) the status of the negotiations regarding agreements that
the President is authorized to enter into with Canada under this
section;
(2) the effectiveness and operation of any agreement entered
into under section 304 that is in force with respect to the United
States;
(3) the effectiveness of operation of the Agreement generally;
and
(4) the actions taken by the United States and Canada to
implement further the objectives of the Agreement.

Transportation.
Maritime
affairs.

SEC. 305. ENERGY.
(a) ALASKAN OIL.—Section 7(dXl) of the Export Administration
Act of 1979 (50 U.S.C. App. 2406(dXl)) is amended—
(1) by striking "or" before "(B)"; and
(2) by inserting after "reenters the United States" the following: ", or (C) is transported to Canada, to be consumed therein,
in amounts not to exceed an annual average of 50,000 barrels
per day, in addition to exports under subparagraphs (A) and (B),
except that any ocean trsuisportation of such oil shall be by
vessels documented under section 12106 of title 46, United
States Code".
(b) URANIUM.—Section 161(v) of the Atomic Energy Act of 1954 (42
U.S.C. 2201(v)) is amended by inserting "For purposes of this subsection and of section 305 of Public Law 99-591 (100 Stat. 3341-209,
210), 'foreign origin' excludes source or special nuclear material
originating in Canada." before "The Commission shall establish".
SEC. 306. LOWERED THRESHOLD FOR GOVERNMENT PROCUREMENT
UNDER TRADE AGREEMENTS ACT OF 1979 IN THE CASE OF
CERTAIN CANADIAN PRODUCTS.
Section 308(4) of the Trade Agreements Act of 1979 (19 U.S.C.
2518(4)) is amended by inserting after subparagraph (C) the following new subparagraph:
"(D)

LOWERED THRESHOLD FOR CERTAIN PRODUCTS AS A

CONSEQUENCE OF UNITED STATES-CANADA FREE-TRADE AGREEMENT.—Except as otherwise agreed by the United States
and Canada under paragraph 3 of article 1304 of the United
States-Canada Free-Trade Agreement, the term 'eligible
product' includes a product or service of Canada having a
contract value of $25,000 or more that would be covered for
procurement by the United States under the GATT Agreement on CJovernment Procurement, but for the SDR threshold provided for in article I(l)(b) of the GATT Agreement on
Government Procurement.".
SEC. 307. TEMPORARY ENTRY FOR BUSINESS PERSONS.
(a) NONIMMIGRANT TRADERS AND INVESTORS.—Upon a b a s i s of

reciprocity secured by the United States^anada Free-Trade Agreement, a citizen of Canada, and the spouse and children of any such
citizen if accompanying or following to join such citizen, may, if
otherwise eligible for a visa and if otherwise admissible into the
United States under the Immigration and Nationality Act (8 U.S.C.
1101 et seq.), be considered to be classifiable as a nonimmigrant
under section 101(aX15XE) of such Act (8 U.S.C. 1101(aX15XE)) if
entering solely for a purpose specified in Annex 1502.1 (United
States of America), Part B—Traders and Investors, of such Agree-

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1877

ment, but only if any such purpose shall have been specified in such
Annex as of the date of entry into force of such Agreement.
(b) NONIMMIGRANT PROPESSIONAM.—Section 214 of the Immigration and Nationality Act (8 U.S.C. 1184) is amended by adding at the
end thereof the following new subsection:
"(e) Notwithstanding any other provision of this Act, an alien who
is a citizen of Canada and seeks to enter the United States under
and pursuant to the provisions of Annex 1502.1 (United States of
America), Part C—Professionals, of the United States-Canada FreeTrade Agreement to engage in business activities at a professional
level as provided for therein may be admitted for such purpose
under regulations of the Attorney General promulgated after consultation with the Secretaries of State and Labor.".
SEC. 308. AMENDMENT TO SECTION 5136 OF THE REVISED STATUTES.

Paragraph "Seventh" of section 5136 of the Revised Statutes (12
U.S.C. 24 (Seventh)) is amended by adding at the end thereof the
following:
"A national banking association may deal in, underwrite, and Banks and
purchase for such association's own account qualified Canadian banking.
government obligations to the same extent that such association Securities.
may deal in, underwrite, and purchase for such association's own
account obligations of the United States or general obligations of
any State or of any political subdivision thereof. For purposes of this
paragraph—
"(1) the term 'qualified Canadian government obligations'
means any debt obligation which is backed by Canada, any
Province of Canada, or any political subdivision of any such
Province to a degree which is comparable to the liability of the
United States, any State, or any political subdivision thereof for
any obligation which is backed by the full faith and credit of the
United States, such State, or such political subdivision, and
such term includes any debt obligation of any agent of Canada
or any such Province or any political subdivision of such Province if—
"(A) the obligation of the agent is assumed in such
agent's capacity as agent for Canada or such Province or
such political subdivision; and
"(B) Canada, such Province, or such political subdivision
on whose behalf such agent is acting with respect to such
obligation is ultimately and unconditionally liable for such
obligation; £md
"(2) the term 'Province of Canada' means a Province of
Canada and includes the Yukon Territory and the Northwest
Territories and their successors.".
SEC. 309. STEEL PRODUCTS.

Nothing in this Act shall preclude any discussion or negotiation
between the United States and Canada in order to conclude voluntary restraint agreements or mutually agreed quantitative
restrictions on the volume of steel products entering the United
States from Canada.

102 STAT. 1878

19 use 2112
note

PUBLIC LAW 100-449—SEPT. 28, 1988

TITLE IV—BINATIONAL PANEL DISPUTE
SETTLEMENT IN ANTIDUMPING AND
COUNTERVAILING DUTY CASES.
SEC. 401. AMENDMENTS TO SECTION 516A OF THE TARIFF ACT OF 1930.
(a) TIME LIMITS.—Section 516A(a) of the Tariff Act of 1930 (19

U.S.C. 1516a(a)) is amended by adding at the end thereof the following new paragraph.
"(5) TIME UMITS IN CASES INVOLVING CANADIAN MERCHAN-

Federal
Register,
publication,

DISE.—Notwithstanding any other provision of this subsection,
in the case of a determination to which the provisions of
subsection (g) apply, an action under this subsection may not be
commenced, and the time limits for commencing an action
under this subsection shall not begin to run, until the 31st day
after—
"(A) the date of publication in the Federal Register of—
"(1) notice of any determination described in paragraph (IXB) or a determination described in clause (ii)
or (iii) of paragraph (2XB), or
"(ii) an antidumping or countervailing duty order
based upon any determination described in clause (i) of
paragraph (2XB), or
"(B) the date on which the Government of Canada receives notice of a determination described in clause (vi) of
paragraph (2XB).".
(b) DEFINITIONS.—Section 516A(0 of the Tariff Act of 1930 (19
U.S.C. 1516a(0) is amended by adding at the end thereof the following new paragraphs:
"(5) AGREEMENT.—The term 'Agreement' means the United
Stat^-Canada Free-Trade Agreement.
"(6) UNITED STATES SECRETARY.—The term 'United States Secretary' means the secretary provided for in paragraph 4 of
article 1909 of the Agreement.
"(7) CANADIAN SECRETARY.—The term 'Canadian Secretary'
means the secretary provided for in paragraph 5 of article 1909
of the Agreement.".
(c) REVIEW REGARDING CANADIAN MERCHANDISE.—Section 516A of

the Tariff Act of 1930 (19 U.S.C. 1516a) is amended by adding at the
end thereof the following new subsection:
"(g) REVIEW OF COUNTERVAIUNG DUTY AND ANTIDUMPING DUTY
DETERMINATIONS INVOLVING CANADIAN MERCHANDISE.—
"(1) DEFINITION OF DETERMINATION.—For purposes of this

subsection, the term 'determination' means a determination
described in—
"(A) paragraph (IXB) of subsection (a), or
"(B) clause (i), (ii), (iii), or (vi) of paragraph (2XB) of
subsection (a),
if made in connection with a proceeding regarding a class or
kind of Canadian merchandise, as determined by the administering authority.
"(2) EXCLUSIVE REVIEW OF DETERMINATION BY BINATIONAL

PANELS.—If binational panel review of a determination is requested pursuant to article 1904 of the Agreement, then, except
as provided in paragraphs (3) and (4)—

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1879

"(A) the determination is not reviewable under subsection (a), and
"(B) no court of the United States has power or jurisdiction to review the determination on any question of law or
fact by an action in the nature of mandamus or otherwise.
"(3) EXCEPTION TO EXCLUSIVE BINATIONAL PANEL REVIEW.—

"(A) I N GENERAL.—A determination is reviewable under
subsection (a) if the determination sought to be reviewed
is—
"(i) a determination as to which neither the United
States nor Canada requested review by a binational
panel pursuant to article 1904 of the Agreement,
"(ii) a revised determination issued as a direct result
of judicial review, commenced pursuant to subsection
(a), if neither the United States nor Canada requested
review of the original determination, or
"(iii) a determination issued as a direct result of
judicial review that was commenced pursuant to
subsection (a) prior to the entry into force of the Agreement.
"(B) SPECIAL RULE.—A determination described in
subparagraph (AXi) is reviewable under subsection (a) only
if the party seeking to commence review has provided
timely notice of its intent to commence such review to the
United States Secretary, the Canadian Secretary, all interested parties who were parties to the proceeding in
connection with which the matter arises, and the administering authority or the Commission, as appropriate. Such
notice is provided timely if the notice is delivered by no
later than the date that Is 20 days after the date described
in subparagraph (A) or (B) of subsection (aX5) that is applicable to such determination. Such notice shall contain Regulations.
such information, and be in such form, manner, and style,
as the administering authority, in consultation with the
Commission, shall prescribe by regulations.
"(4) EXCEPTION TO EXCLUSIVE BINATIONAL PANEL REVIEW FOR
CONSTITUTIONAL ISSUES.—
"(A) CONSTITUTIONALITY OF BINATIONAL PANEL REVIEW

Courts, U.S.

SYSTEM.—An action for declaratory judgment or injunctive District of
relief, or both, regarding a determination on the grounds Columbia.
that any provision of, or amendment made by, the United
States-Canada Free-Trade Implementation Agreement Act
of 1988 implementing the binational panel dispute settlement system under chapter 19 of the Agreement violates
the Constitution may be brought in the United States Court
of Appeals for the District of Columbia Circuit. Any action
brought under this subparagraph shall be heard and determined by a 3-judge court in accordance with section 2284 of
title 28, United States Code.
"(B) OTHER CONSTITUTIONAL REVIEW.—Review is available

under subsection (a) with respect to a determination solely
concerning a constitutional issue (other than an issue to
which subparagraph (A) applies) arising under any law of
the United States as enacted or applied. An action for
review under this subparEigraph shall be assigned to a 3jud
judge panel of the United States Court of International
Trc
rade.

Courts, U.S.

102 STAT. 1880
Federal
Register,
publication.

PUBLIC LAW 100-449—SEPT. 28, 1988
"(C) COMMENCEMENT OF REVIEW.—Notwithstanding the

time limits in subsection (a), within 30 days after the date of
publication in the Federal Register of notice that binational
panel review has been completed, an interested party who
is a party to the proceeding in connection with which the
matter arises may commence an action under subparagraph (A) or (B) by filing an action in accordance with the
rules of the court.
"(D)

TRANSFER OF ACTIONS TO APPROPRIATE COURT.—

Whenever an action is filed in a court under subparagraph
(A) or (B) and that court finds that the action should have
been filed in the other court, the court in which the action
was filed shall transfer the action to the other court and the
action shall proceed as if it had been filed in the. court to
which it is transferred on the date upon which it was
actually filed in the court from which it is transferred.
"(E) FRIVOLOUS CLAIMS.—Frivolous claims brought under
subparagraph (A) or (B) are subject to dismissal and sanctions as provided under section 1927 of title 28, United
States Code, and the Federal Rules of Civil Procedure.
"(F) SECURITY.—

"(i)

Courts, U.S.

SUBPARAGRAPH

(A)

ACTIONS.—The

security

requirements of rule 65(c) of the Federal Rules of Civil
Procedure apply with respect to actions commenced
under subparagraph (A).
"(ii) SUBPARAGRAPH (B) ACTIONS.—No claim shall be
heard, and no temporary restraining order or temporary or permanent injunction shall be issued, under
an action commenced under subparagraph (B), unless
the party seeking review first files an undertaking with
adequate security in an amount to be fixed by the court
sufficient to recompense parties affected for any loss,
expense, or damage caused by the improvident or erroneous issuance of such order or injunction. If a court
upholds the constitutionality of the determination in
question in such action, the court shall award to a
prevailing party fees and expenses, in addition to any
costs incurred by that party, unless the court finds that
the position of the other party was substantially justified or that special circumstances make an award
unjust.
"(G) PANEL RECORD.—The record of proceedings before
the binational panel shall not be considered part of the
record for review pursuant to subparagraph (A) or (B).
"(H) APPEAL TO SUPREME COURT OF COURT ORDERS ISSUED

IN SUBPARAGRAPH

(A)

ACTIONS.—Notwithstanding

any

other provision of law, any final judgment of the United
States Court of Appeals for the District of Columbia Circuit
which is issued pursuant to an action brought under
subparagraph (A) shall be reviewable by appeal directly to
the Supreme Court of the United States. Any such appeal
shall be taken by a notice of appeal filed within 10 days
after such order is entered; and the jurisdictional statement
shall be filed within 30 days after such order is entered. No
stay of an order issued pursuant to an action brought under
subparagraph (A) may be issued by a single Justice of the
Supreme Court.

•.-.rf»*-s*„l^ j'^/^^BgfcC?*"'''*"''"•""*'-- "^-"^

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1881

'(5) LIQUIDATION OF ENTRIES.—

"(A) APPUCATION.—In the case of a determination for
which binational panel review is requested pursuant to
article 1904 of the Agreement, the rules provided in this
paragraph shall apply, notwithstanding the provisions of
subsection (c).
"(B) GENERAL RULE.—In the case of a determination for Federal
which binational panel review is requested pursuant to Register,
article 1904 of the Agreement, entries of merchandise cov- Publication.
ered by such determination shall be liquidated in accordance with the determination of the administering authority
or the Commission, if they are entered, or withdrawn from
warehouse, for consumption on or before the date of
publication in the Federal Register by the administering
authority of notice of a final decision of a binational panel,
or of an extraordinary challenge committee, not in harmony with that determination. Such notice of a decision
shall be published within 10 days of the date of the issuance
of the panel or committee decision.
"(C) SUSPENSION OF LIQUIDATION.—

"(i) I N GENERAL.—Notwithstanding the provisions of
subparagraph (B), in the case of a determination described in clause (iii) or (vi) of subsection (aX2XB) for
which binational panel review is requested pursuant to
article 1904 of the Agreement, the administering
authority, upon request of an interested party who was
a party to the proceeding in connection with which the
matter arises and who is a participant in the binational
panel review, shall order the continued suspension of
liquidation of those entries of merchandise covered by
the determination that are involved in the review pending the final disposition of the review.
"(ii) NOTICE.—At the same time as the interested
party makes its request to the administering authority
under clause (i), that party shall serve a copy of ite
request on the United States Secretary, the Canadian
Secretary, and all interested parties who were parties
to the proceeding in connection with which the matter
arises.
"(iii) APPLICATION OF SUSPENSION.—If the interested
party requesting continued suspension of liquidation
under clause (i) is a foreign manufacturer, producer, or
exporter, or a United States importer, the continued
suspension of liquidation shall apply only to entries of
merchandise manufactured, produced, exported, or imported by that particular manufacturer, producer, exporter, or importer. If the interested party requesting
the continued suspension of liquidation under clause (i)
is an interested party described in subparagraph (C),
(D), (E), or (F) of section 771(9), the continued suspension of liquidation shall apply only to entries which
could be affected by a decision of the binational panel
convened under chapter 19 of the Agreement.
"(iv) JUDICIAL REVIEW.—Any action taken by the
administering authority or the United States Customs
Service under this subparagraph shall not be subject to
judicial review, and no court of the United States shall

102 STAT. 1882

PUBLIC LAW 100-449—SEPT. 28, 1988
have power or jurisdiction to review such action on any
question of law or fact by an action in the nature of
mandamus or otherwise.
"(6) INJUNCTIVE REUEF.—Except for cases under paragraph
(4XB), in the case of a determination for which binational panel
review is requested pursuant to article 1904 of the Agreement,
the provisions of subsection (cX2) shall not apply.
"(7) IMPLEMENTATION OF INTERNATIONAL OBUGATIONS UNDER
ARTICLE 1904.—

"(A) I N GENERAL.—If a determination is referred to a
binational panel or extraordinary challenge committee
under the Agreement and the panel or committee makes a
decision remanding the determination to the administering
authority or the Commission, the administering authority
or the Commission shall, within the period specified by the
panel or committee, take action not inconsistent with the
decision of the panel or committee. Any action taken by the
administering authority or the Commission under this
paragraph shall not be subject to judicial review, and no
court of the United States shall have power or jurisdiction
to review such action on any question of law or fact by an
action in the nature of mandamus or otherwise.
"(B) APPUCATION IF SUBPARAGRAPH (A) HELD UNCONSTITU-

TIONAL.—In the event that the provisions of subparagraph
(A) are held unconstitutional under the provisions of subparagraphs (A) and (H) of paragraph (4), the provisions of
this subparagraph shall take effect. In such event, the
President is authorized on behalf of the United States to
accept, as a whole, the decision of a binational panel or
extraordinary challenge committee remanding the determination to the administering authority or the Commission
within the period specified by the panel or committee. Upon
acceptance by the President of such a decision, the administering authority or the Commission shall, within the
period specified by the panel or committee, take action not
inconsistent with such decision. Any action taken by the
President, the administering authority, or the Commission
under this subparagraph shall not be subject to judicial
review, and no court of the United States shall have power
or jurisdiction to review such action on any question of
law or fact by an action in the nature of mandamus or
otherwise.
"(8) REQUESTS FOR BINATIONAL PANEL REVIEW.—
"(A) INTERESTED PARTY REQUESTS FOR BINATIONAL PANEL

Regulations.

REVIEW.—An interested party who was a party to the
proceeding in which a determination is made may request
binational panel review of such determination by filing a
request with the United States Secretary by no later than
the date that is 30 days after the date described in subparagraph (A) or (B) of subsection (aX5) that is applicable to such
determination. Receipt of such request by the United States
Secretary shall be deemed to be a request for binational
panel review within the meaning of article 1904(4) of the
Agreement. Such request shall contain such information
and be in such form, manner, and style as the administering authority, in consultation with the Commission, shall
prescribe by regulations.

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1883

"(B) SERVICE OF REQUEST FOR BINATIONAL PANEL
REVIEW.—
"(i) SERVICE BY INTERESTED PARTY.—If a request for

Mail,

binational panel review of a determination is filed
under subparagraph (A), the party making the request
shall serve a copy, by mail or personal service, on any
other interested party who w£is a party to the proceeding in connection with which the matter arises, and on
the administering authority or the Commission, as
appropriate.
(ii) SERVICE BY UNITED STATES SECRETARY.—If

an

interested party to the proceeding requests binational
panel review of a determination by filing a request
with the Canadian Secretary, the United States Secretary shall serve a copy of the request by mail on any
other interested party who was a party to the proceeding in connection with which the matter arises, and on
the administering authority or the Commission, as
appropriate.
"(C)

LIMITATION ON REQUEST FOR BINATIONAL PANEL

REVIEW.—Absent a request by an interested party under
subparagraph (A), the United States may not request binational panel review under article 1904 of the Agreement
of a determination.
"(9) REPRESENTATION IN PANEL PROCEEDINGS.—In the case of
binational panel proceedings convened under chapter 19 of the
Agreement, the administering authority and the Commission
shall be represented by attorneys who are employees of the
administering authority or the Commission, respectively. Interested parties who were parties to the proceeding in connection with which the matter arises shall have the right to appear
and be represented by counsel before the binational panel.
"(10) NOTIFICATION OF CLASS OR KIND RUUNGS.—In the case of
a determination which is described in paragraph (2XBXvi) of
subsection (a) and which is subject to the provisions of paragraph (2), the administering authority, upon request, shall
inform any interested person of the date on which the Government of Canada received notice of the determination under
article 1904(4) of the Agreement.",
(d) STANDARDS OF REVIEW.—Section 516A0)) of the Tariff Act of
1930 (19 U.S.C. 1516a(b)) is amended by adding a new paragraph (3)
as follows:
"(3) EFFECT OF DECISIONS BY UNITED STATES-CANADA BI- Courts, U.S.
NATIONAL PANELS.—In making a decision in any action brought
under subsection (a), a court of the United States is not bound
by, but may take into consideration, a fingd decision of a binational panel or extraordinary challenge committee convened
pursuEuit to article 1904 of the Agreement.".
SEC. 402. AMENDMENTS TO TITLE 28, UNITED STATES CODE.
(a) JURISDICTION OF COURT OF INTERNATIONAL TRADE.—Section

1581(i) of title 28, United States Code, is amended by adding at the
end thereof the following flush sentence: "This subsection shall not
confer jurisdiction over an antidumping or countervailing duty
determination which is reviewable either by the Court of International Trade under section 516A(a) of the Tariff Act of 1930 or by
a binational panel under article 1904 of the United States-Canada

102 STAT. 1884

PUBLIC LAW 100-449—SEPT. 28, 1988

Free-Trade Agreement and section 516A(g) of the Tariff Act of
1930.".
(b) RELIEF IN COURT OF INTERNATIONAL TRADE.—Section 2643(c) of

title 28, United States Code, is amended—
(1) by striking out "and (4)" in paragraph (1) and inserting in
Ueu thereof "(4), and (5)"; and
(2) by adding at the end thereof the following new paragraph:
"(5) In any civil action involving an antidumping or countervailing duty proceeding regarding a class or kmd of Ceuiadian
merchandise, as determined by the administering authority, the
Court of International Trade may not order declaratory relief.".
(c) DECLARATORY JUDGMENTS.—Subsection (a) of section 2201 of

title 28, United States Code, is amended—
(1) by striking out "1954 or" and inserting in lieu thereof
"1986,''; and
(2) by inserting "or in any civil action involving an antidumping or countervailing duty proceeding regarding a class or kind
of Canadian merchandise, as determined by the administering
authority," after "of title 11,".
(d) ACTIONS UNDER THE AGREEMENT.—

(1) Chapter 95 of title 28, United States Code, is amended by
inserting after section 1583 the following new section:
'*§ 1584. Civil actions under the United States-Canada Free-Trade
Agreement
"The United States Court of International Trade shall have exclusive jurisdiction of any civil action which arises under section 777(d)
of the Tariff Act of 1930 and is commenced by the United States to
enforce administrative sanctions levied for violation of a protective
order or an undertaking.".
(2) The table of contents for chapter 95 of title 28, United States
Code, is amended by inserting after the item relating to section 1583
the following new item:
"1584. Civil actions under the United States-Canada Free-Trade Agreement".
Ck)urts, U.S.

SEC. 403. CONFORMING AMENDMENTS TO THE TARIFF ACT OF 1930.

(a) Section 5020>) of the Tariff Act of 1930 (19 U.S.C. 1502(b)) is
amended by striking out all after "recommending the same," and
inserting in lieu thereof "a final decision of the United States (Dourt
of International Trade, or a final decision of a binational panel
pursuant to article 1904 of the United States-Canada Free-Trade
(b) Section'5140)) of the Tariff Act of 1930 (19 U.S.C. 1514(b)) is
amended by inserting ", or review by a binational panel of a
determination to which section 516A(gX2) applies is commenced
pursuant to section 516A(g) and article 1904 of the United StatesCanada Free-Trade Agreement" after "International Trade".
(c) Section 777 of the Tariff Act of 1930 (19 U.S.C. 1677f) is
amended by adding at the end thereof the following new subsection:
"(d) Disax)suRE OF PROPRIETARY INFORMATION UNDER PROTECRecords.
Classified
information.

TIVE ORDERS ISSUED PURSUANT TO THE UNFFED STATES-CANADA
AGREEMENT.—
"(1) ISSUANCE OF PROTECTIVE ORDERS.—

"(A) IN GENERAL.—If binational panel review of a determination under this title is requested pursuant to article
1904 of the United States-Canada Agreement, or an

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1885

extraordinary challenge committee is convened under
Annex 1904.13 of the United States-Canada Agreement, the
administering authority or the Commission, as appropriate,
may make available to authorized persons, under a protective order described in paragraph (2), a copy of all proprietary material (but not privileged material as defined by
the rules of procedure referred to in article 1904(14) of the
United States-Canada Agreement) in the administrative
record made during the proceeding in question.
"(B) AUTHORIZED PERSONS.—For purposes of this subsection, the term "authorized persons" means—
"(i) the members of, and the appropriate staff of, the
binational panel or the extraordinary challenge
committee, as the case may be, and the Secretariat,
"(ii) counsel for parties to such panel or conmiittee
proceeding, and employees of such counsel, and
"(iii) any officer or employee of the United States
Government designated by the administering authority
or the Commission, as appropriate, to whom disclosure
is necessary in order to implement the United StatesCanada Agreement with respect to such proceeding.
"(C) REVIEW.—A decision concerning the disclosure or
nondisclosure of material under protective order by the
administering authority or the Commission shall not be
subject to judicial review, and no court of the United States
shall have power or jurisdiction to review such decision on
any question of law or fact by an action in the nature of
mandamus or otherwise.
"(2) CONTENTS OF PROTECTIVE ORDER.—Each protective order
issued under this subsection shall be in such form and contain
such requirements as the administering authority or the
Commission may determine by regulation to be appropriate.
The administering authority and the Commission shall ensure
that regulations issued pursuant to this paragraph shall be
designed to provide an opportunity for participation in the
binational panel proceeding equivalent to that available for
judicial review of determinations by the administering authority or the Commission that are not subject to review by a
binational panel.
"(3) PROHIBITED ACTS.—It is unlawful for any person to violate, or to induce the violation of, any provision of a protective
order issued under this subsection or to violate, or to induce the
violation of, any provision of an undertaking entered into with
an authorized agency of Canada to protect proprietary material
during binational panel review pursuant to article 1904 of the
United States-Canada Agreement.
"(4) SANCTIONS FOR VIOLATION OF PROTECTIVE ORDERS.—Any

person who is found by the administering authority or the
Commission, as appropriate, after notice and an opportunity for
a hearing in accordance with section 554 of title 5, United States
Code, to have committed an act prohibited by paragraph (3)
shall be liable to the United States for a civil penalty and shall
be subject to such other administrative sanctions, including, but
not limited to, debarment from practice before the administering authority or the Commission, as the administering authority or the Commission determines to be appropriate. The
amount of the civil penalty shall not exceed $100,()00 for each

102 STAT. 1886

Mail.

Records.

Records.

PUBLIC LAW 100-449—SEPT. 28, 1988'
violation. Each day of a continuing violation shall constitute a
separate violation. The amount of such civil penalty and other
sanctions shall be assessed by the administering authority or
the Commission by written notice, except that assessment shall
be made by the administering authority for violation, or inducement of a violation, of an undertaking entered into by any
person with an authorized agency of Canada.
"(5) REVIEW OF SANCTIONS.—Any person against whom sanctions are imposed under paragraph (4) may obtain review of
such sanctions by filing a notice of appeal in the United States
Court of International Trade within 30 days from the date of the
order imposing the sanction and by simultaneously sending a
copy of such notice by certified mail to the administering
authority or the Commission, as appropriate. The administering
authority or the Commission shall promptly file in such court a
certified copy of the record upon which such violation was found
or such sanction imposed, as provided in section 2112 of title 28,
United States Code. The findings and order of the administering
authority or the Commission shall be set aside by the court only
if the court finds that such findings and order are not supported
by substantial evidence, as provided in section 706(2) of title 5,
United States Code.
"(6) ENFORCEMENT OF SANCTIONS.—If any person fails to pay
an assessment of a civil penalty or to comply with other
administrative sanctions after the order imposing such sanctions becomes a final and unappealable order, or after the
United States Court of International Trade has entered final
judgment in favor of the administering authority or the
Commission, an action may be filed in such court to enforce the
sanctions. In such action, the validity and appropriateness of
the final order imposing the sanctions shall not be subject to
review.
"(7) TESTIMONY AND PRODUCTION OF PAPERS.—
"(A) AUTHORITY TO OBTAIN INFORMATION.—For

the purpose of conducting any hearing and carrjdng out other
functions and duties under this subsection, the administering authority and the Commission, or their duly authorized
agents—
"(i) shall have access to and the right to copy any
pertinent document, paper, or record in the possession
of any individual, partnership, corporation, association,
organization, or other entity,
(ii) may summon witnesses, take testimony, and
administer oaths,
"(iii) and may require any individual or entity to
produce pertinent documents, books, or records.
Any member of the Commission, and any person so designated by the administering authority, may sign
subpoenas, and members and agents of the administering
authority and the Commission, when authorized by the
administering authority or the Commission, as appropriate,
may administer oaths and affirmations, examine witnesses,
take testimony, and receive evidence.
"(B) WITNESSES AND EVIDENCE.—The attendance of witnesses who are authorized to be summoned, and the production of documentary evidence authorized to be ordered,
under subparagraph (A) may be required from any place in

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1887

the United States at any designated place of hearing. In the
case of disobedience to a subpoena issued under subparagraph (A), an action may be filed in any district or territorial court of the United States to require the attendance
and testimony of witnesses and the production of documentary evidence. Such court, within the jurisdiction of which
such inquiry is carried on, may, in case of contumacy or
refusal to obey a subpoena issued to any individual, partnership, corporation, association, organization or other
entity, issue any order requiring such individual or entity
to appear before the administering authority or the
Commission, or to produce documentary evidence if so ordered or to give evidence concerning the matter in question.
Any failure to obey such order of the court may be punished
by the court as a contempt thereof.
"(C) MANDAMUS.—Any court referred to in subparagraph
(B) shall have jurisdiction to issue writs of mandamus
commanding compliance with the provisions of this subsection or any order of the administering authority or the
Commission made in pursuance thereof.
"(D) DEPOSITIONS.—For purposes of carrjdng out any functions or duties under this subsection, the administering
authority or the Commission may order testimony to be
taken by deposition. Such deposition may be taken before
any person designated by the administering authority or
Commission and having power to administer oaths. Such
testimony shall be reduced to writing by the person taking
the deposition, or under the direction of such person, and
shall then be subscribed by the deponent. Any individual,
partnership, corporation, association, organization or other
entity may be compelled to appear and depose and to
produce documentary evidence in the same manner as
witnesses may be compelled to appear and testify and
produce documentary evidence before the administering
authority or Commission, as provided in this paragraph.
"(E) FEES AND MILEAGE OF WITNESSES.—Witnesses summoned before the administering authority or the Commission shedl be paid the same fees and mileage that are paid
witnesses in the courts of the United States.",
(d) Section 771 of the Tariff Act of 1930 (19 U.S.C. 1677) is
amended by adding at the end thereof the following new paragraph
(18):
"(18) UNITED STATES-CANADA AGREEMENT.—The term 'United
States-Canada Agreement' means the United States-Canada
Free-Trade Agreement.".
SEC. 404. AMENDMENTS TO ANTIDUMPING AND COUNTERVAILING DUTY
LAW.

Any amendment enacted after the Agreement enters into force
with respect to the United States that is made to—
(1) section 303 or title VII of the Tariff Act of 1930, or any
successor statute, or
(2) any other statute which—
(A) provides for judicial review of final determinations
under such section, title, or statute, or
(B) indicates the standard of review to be applied,

102 STAT. 1888

PUBLIC LAW 100-449—SEPT. 28, 1988

shall apply to Canada only to the extent speciHed in such
amendment.
Establishment.

SEC. 405. ORGANIZATIONAL AND ADMINISTRATIVE PROVISIONS REGARDING THE IMPLEMENTATION OF CHAPTERS 18 AND 19 OF THE
AGREEMENT.
(a) APPOINTMENT OF INDIVIDUALS TO PANELS AND COMMITTEES.—

(IXA) There is established within the interagency organization established under section 242 of the Trade Expansion Act of
1962 (19 U.S.C. 1872) an interagency group which shall—
(i) be chaired by the United States Trade Representative
(hereafter in this section referred to as the "Trade Representative"), and
(ii) consist of such officers (or the designees thereof) of the
(jfovemment of the United States as the Trade Representative considers appropriate.
(B) The interagency group established under subparagraph
(A) shall, in a manner consistent with chapter 19 of the
Agreement—
(i) prepare by January 3 of each calendar year—
(I) a list of individuals who are qualified to serve as
members of binational panels convened under chapter
19 of the Agreement, and
(II) a list of individuals who are qualified to serve on
extraordinary challenge committees convened under
such chapter,
(ii) if the Trade Representative makes a request under
paragraph (5XAXi) with respect to a final candidate list
during any calendar year, prepare by July 1 of such calendar year a list of those individuals who are qualified to be
added to that final candidate list,
(iii) exercise oversight of the administration of the United
States Secretariat that is authorized to be established under
subsection (e), and
(iv) make recommendations to the Trade Representative
r ^ a r d i n g the convening of extraordinary challenge
committees under chapter 19 of the Agreement.
(2XA) The Trade Representative shall select individuals from
the respective lists prepared by the interagency group under
paragraph (l)(BXi) for placement on a preliminary candidate list
of individuals eligible to serve as members of binational panels
under Annex 1901.2 of the Agreement and a preliminary candidate list of individuals eligible for selection as members of
extraordinary challenge committees under Annex 1904.13 of the
Agreement.
(B) The selection of individuals for—
(i) placement on lists prepared by the interagency group
under clause (i) or (ii) of paragraph (IXB),
(ii) placement on preliminary candidate lists under
subparagraph (A),
(iii) placement on final candidate lists under paragraph (3),
(iv) placement by the Trade Representative on the rosters
described in Annex 1901.2(1) and Annex 1904.13(1) of the
Agreement, and

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1889

(v) appointment by the Trade Representative for service
on binational panels and extraordinary challenge committees convened under chapter 19 of the Agreement,
shall be made on the basis of the criteria provided in Annex
1901.2(1) and Annex 1904.13(1) of the Agreement and shall be
made without regard to political affiliation.
(C) For purposes of applying section 1001 of title 18, United
States Code, the written or oral responses of individuals to
inquiries of the interagency group established under paragraph
(1) or the Trade Representative regarding their personal and
professional qualifications, and financial and other relevant
interests, that bear on their suitability for the placements and
appointments described in subparagraph (B), shall be treated as
matters within the jurisdiction of an agency of the United
States.
(3XA) By no later than January 3 of each calendar year, the
Trade Representative shall submit to the Committee on Finance
of the Senate and the Committee on Ways and Means of the
House of Representatives (hereafter in this section referred to
as the "appropriate Congressional Committees") the preliminary candidate lists of those individuals selected by the Trade
Representative under paragraph (2XA) to be candidates eligible
to serve on binational panels or extraordinary challenge
committees convened pursuant to chapter 19 of the Agreement
during the 1-year period beginning on April 1 of such calendar
year.
(B) Upon submission of the preliminary candidate lists under
subparagraph (A) to the appropriate (Congressional Ck)mmittees,
the Trade Representative shall consult with the appropriate
Congressional C!ommittees with regard to the individuals listed
on the preliminary candidate lists.
(C) TTie Trade Representative may add or delete individuals
from the preliminary candidate lists submitted under subparagraph (A) after consulting the appropriate Congressional
(Committees with regard to such addition or deletion. The Trade
Representative shall provide to the appropriate Congressional
C!ommittees written notice of any addition or deletion of an
individual from the preliminary candidate lists.
(4XA) By no later than March 31 of each calendar year, the
Trade Representative shall submit to the appropriate (Congressional (Committees the final candidate lists of those individuals
selected by the Trade Representative to be candidates eligible to
serve on binational panels and extraordinary challenge committees convened pursuant to chapter 19 of the Agreement during
the 1-year period beginning on April 1 of such calendar year. An
individu£d may be included on a final candidate list only if
written notice of the addition of such individual to the preliminary candidate list was submitted to the appropriate (Congressional (Committees at least 15 days before the date on which
that final candidate list is submitted to the appropriate
(Congressional (Committees under this subparagraph.
(B) Except as provided in paragraph (5), no additions may be
made to the final candidate lists after the final candidate lists
are submitted to the appropriate (Congressional (Committees
under subparagraph (A).
(5XA) If, after the Trade Representative has submitted the
final candidate lists to the appropriate Congressional Commit-

102 STAT. 1890

Effective date.

Effective date.

PUBLIC LAW 100-449—SEPT. 28, 1988
tees under paragraph (4XA) for a calendar year and before July
1 of such calendar year, the Trade Representative determines
that additional individuals need to be added to a final candidate
list, the Trade Representative shall—
(i) request the interagency group established under paragraph (IXA) to prepare a list of individuals who are
qualified to be added to such candidate list,
(ii) select individuals from the list prepared by the interagency group under paragraph (IXBXii) to be included in a
proposed amendment to such final candidate list, and
(iii) by no later than July 1 of such calendar year, submit
to the appropriate Congressional Committees the proposed
amendments to such final candidate list developed by the
Trade Representative under clause (ii).
(B) Upon submission of a proposed amendment under
subparagraph (AXiii) to the appropriate Congressional Committees, the Trade Representative shall consult with the appropriate Congressional Committees with regard to the individuals
included in the proposed amendment.
(C) The Trade Representative may add or delete individuals
from any proposed amendment submitted under subparagraph
(AXiii) after consulting the appropriate Congressional (Committees with regard to such addition or deletion. The Trade Representative shall provide to the appropriate (Congressional
Committees written notice of any addition or deletion of an
individual from the proposed amendment.
(DXi) If the Trade Representative submits under subparagraph (AXiii) in any calendar year a proposed amendment to a
final candidate list, the Trade Representative shall, by no later
than September 30 of such calendar year, submit to the appropriate Congressional (Committees the final form of such amendment. On October 1 of such calendar year, such amendment
shall take effect and the individuals included in the final form
of such amendment shall be added to the final candidate list.
(ii) An individual may be included in the final form of an
Eunendment submitted under clause (i) only if written notice of
the addition of such individual to the proposed form of such
amendment was submitted to the appropriate Congressional
(Committees at least 15 days before the date on which the final
form of such amendment is submitted under clause (i).
(iii) Individuals added to a final candidate list under clause (i)
shall be eligible to serve on binational panels or extraordinary
challenge committees convened pursuant to chapter 19 of the
Agreement, as the case may be, during the 6-month period
beginning on October 1 of the calendar year in which such
addition occurs.
(iv) No additions may be made to the final form of an amendment described in clause (i) after the final form of such amendment is submitted to the appropriate Congressional Committees
under clause (i).
(6XA) The Trade Representative is the only officer of the
Government of the United States authorized to act on behalf of
the Government of the United States in making any selection or
appointment of an individual to—
(i) the rosters described in Annex 1901.2(1) and Annex
1904.13(1) of the Agreement, or

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1891

(ii) the binational panels or extraordinary challenge
committees convened pursuant to chapter 19 of the
Agreement,
that is to be made solely or jointly by the Government of the
United States under the terms of the Agreement.
(B) Except as otherwise provided in paragraph (7KB), the
Trade Representative may—
(i) select an individual for placement on the rosters described in Annex 1901.2(1) and Annex 1904.13(1) of the
Agreement during the 1-year period beginning on April 1 of
any calendar year,
(ii) appoint an individual to serve as one of those members of any binational panel or extraordinary challenge
committee convened pursuant to chapter 19 of the Agreement during such 1-year period who, under the terms of the
Agreement, are to be appointed solely by the Government
of the United States, or
(iii) act to make a joint appointment with the Government of Canada, under the terms of the Agreement, of any
individual who is a citizen or national of the United States
to serve as any other member of such a panel or committee,
only if such individual is on the appropriate final candidate list
that was submitted to the appropriate Congressional (Dommittees under paragraph (4XA) during such calendar year or on
such list as it may be amended under paragraph (5XDXi).
(7XA) Except as otherwise provided in this paragraph, no
individual may—
(i) be selected by the Government of the United States for
placement on the rosters described in Annex 1901.2(1) and
Annex 1904.13(1) of the Agreement, or
(ii) be appointed solely or jointly by the Government of
the United States to serve as a member of a binational
panel or extraordinary chgdlenge committee convened
pursuant to chapter 19 of the Agreement,
during the 1-year period beginning on April 1 of any calendar
year for which the Trade Representative has not met the
requirements of this subsection.
(BXi) Notwithstanding paragraphs (3), (4), or (6XB) (other than
paragraph (3XA)), individuals listed on the preliminary candidate lists submitted to the appropriate Congressional (Committees under paragraph (3XA) may—
(I) be selected by the Trade Representative for placement
on the rosters described in Annex 1901.2(1) and Annex
1904.13(1) of the Agreement during the 3-month period
beginning on the date on which the Agreement enters into
force, and
(II) be appointed solely or jointly by the Trade Representative under the terms of the Agreement to serve as members of binational panels or extraordinary challenge
committees that are convened pursuant to chapter 19 of the
Agreement during such 3-month period.
(ii) If the Agreement enters into force after January 3, 1989,
the provisions of this subsection shall be applied with respect to
the calendar year in which the Agreement enters into force—
(I) by substituting "the date that is 30 days after the date
on which the Agreement enters into force for "January 3
of each calendar year" in paragraphs (IXBXi) and (3XA), and

102 STAT. 1892

Government
organization and
employees.

PUBLIC LAW 100-449—SEPT. 28, 1988

(II) by substituting "the date that is 3 months after the
date on which the Agreement enters into force" for "March
31 of each calendar year" in paragraph (4XA).
(b) STATUS OF PANELISTS.—Notwithstanding any other provision of
law, individuals appointed by the United Stetes to serve on panels
or committees convened pursuant to chapter 19 of the Agreement,
and individuals designated to assist such appointed individuals,
shall not be considered to be employees or special employees of, or to
be otherwise affihated with, the Government of the United States.
(c) IMMUNITY OF PANELISTS.—With the exception of acts described
in section 777f(dX3) of the Tariff Act of 1930, as added by this Act,
individuals serving on panels or committees convened pursuant to
chapter 19 of the Agreement, and individuals designated to assist
the individuals serving on such panels or committees, shall be
immune from suit and legal process relating to acts performed by
such individuals in their official capacity and within the scope of
their functions as such panelists or committee members or assistants to such panelists or committee members.
(d) REGULATIONS.—The administering authority under title VII of
the Tariff Act of 1930, the United States International Trade
Commission, and the United States Trade Representative may
promulgate such regulations as are necessary or appropriate to
carry out actions in order to implement their respective responsibilities under chapters 18 and 19 of the Agreement. Initial regulations
to carry out such functions shall be issued prior to the date of entry
into force of the Agreement.
(e) ESTABLISHMENT OF UNITED STATES SECRETARIAT.—

(1) The President is authorized to establish within any department or agency of the FedergJ Government a United States
Secretariat which, subject to the oversight of the interagency
group established under subsection (aXlXA), shall facilitate—
(A) the operation of chapters 18 and 19 of the Agreement,
and
(B) the work of the binational panels and extraordinary
challenge committees convened under chapters 18 and 19 of
the Agreement.
(2) The United States Secretariat established by the President
under paragraph (1) shall not be considered to be an agency for
purposes of section 552 of title 5, United States Code.
SEC. 406. AUTHORIZATION OF APPROPRIATIONS FOR THE SECRETARIAT,
THE PANELS, AND THE COMMITTEES.

(a) THE SECRETARIAT.—^There are authorized to be appropriated to
the department or agency within which the United States Secretariat described in chapter 19 of the Agreement is established the lesser
of—
(1) such sums as may be necessary, or
(2) $5,000,000,
for each fiscal year succeeding fiscal year 1988 for the establishment
and operations of such United States Secretariat and for the payment of the United States share of the expenses of the dispute
settlement proceedings under chapter 18 of the Agreement.
0>) PANELS AND COMMITTEES.—

(1) There are authorized to be appropriated to the Office of
the United States Trade Representative for fiscal year 1989
such sums as may be necessary to pay during such fiscal year
the United States share of the expenses of binational panels and

.m^'Wi

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1893

extraordinary challenge committees convened pursuant to
chapter 19 of the Agreement.
(2) The United States Trade Representative is authorized to
transfer funds appropriated pursuant to the authorization provided under paragraph (1) to any department or agency of the
United States in order to facilitate pa5rment of the expenses
described in paragraph (1).
(3) Funds appropriated for the pajonent of expenses described
in paragraph (1) during any fiscal year may be expended only to
the extent such funds do not exceed the amount authorized to
be appropriated under paragraph (1) for such fiscal year. This
paragraph shall apply, notwithstanding any law enacted after
the date of enactment of this Act, unless such subsequent law
specifically provides that this paragraph shall not apply and
specifically cites this paragraph.
SEC. 407. TESTIMONY AND PRODUCTION OF PAPERS IN EXTRAORDINARY Records.
CHALLENGES.
(a)

AUTHORITY OF EXTRAORDINARY CHALLENGE COMMITTEE TO

OBTAIN INFORMATION.—If an extraordinary chedlenge committee
Oiereinafter referred to in this section as the "committee") is convened pursuant to article 1904(13) of the Agreement, and the allegations before the committee include a matter referred to in article
1904(13XaXi) of the Agreement, for the purposes of carrying out its
functions and duties under Annex 1904.13 of the Agreement, the
committee—
(1) shall have access to, and the right to copy, any document,
paper, or record pertinent to the subject matter under consideration, in the possession of any individual, partnership, corporation, Eissociation, organization, or other entity,
(2) may summon witnesses, take testimony, and administer
oaths,
(3) may require any individual, partnership, corporation,
association, organization, or other entity to produce documents,
books, or records relating to the matter in question, and
(4) may require any individual, partnership, corporation,
association, organization, or other entity to furnish in writing,
in such detail and in such form as the committee may prescribe,
information in its possession pertaining to the matter.
Any member of the committee may sign subpoenas, and members of
the committee, when authorized by the committee, may administer
oaths £ind affirmations, examine witnesses, take testimony, and
receive evidence.
Qo) WITNESSES AND EVIDENCE.—The attendance of witnesses who
are authorized to be summoned, and the production of documentary
evidence authorized to be ordered, under subsection (a) may be
required from any place in the United States at any designated
place of hearing. In the case of disobedience to a subpoena authorized under subsection (a), the committee may request the Attorney General of the United States to invoke the aid of any district or
territorial court of the United States in requiring the attendance
and testimony of witnesses and the production of documentary
evidence. Such court, within the jurisdiction of which such inquiry is
carried on, may, in case of contumacy or refusal to obey a subpoena
issued to any individual, partnership, corporation, association,
organization, or other entity, issue an order requiring such individual or entity to appear before the committee, or to produce docu-

102 STAT. 1894
Law
enforcement and
crime.

PUBLIC LAW 100-449—SEPT. 28, 1988

mentary evidence if so ordered or to give evidence concerning the
matter in question. Any failure to obey such order of the court may
be punished by such court as a contempt thereof.
(c) MANDAMUS.—Any court referred to in subsection (b) shall have
jurisdiction to issue writs of mandamus commanding compliance
with the provisions of this section or any order of the committee
made in pursuance thereof.
(d) DEPOSITIONS.—The committee may order testimony to be taken
by deposition at any st£ige of the committee review. Such deposition
may be taken before any person designated by the committee and
having power to administer oaths. Such testimony shall be reduced
to writing by the person taking the deposition, or under the direction of such person, and shall then be subscribed by the deponent.
Any individual, partnership, corporation, association, organization
or other entity may be compelled to appear and depose and to
produce documentary evidence in the same manner as witnesses
may be compelled to appear and testify and produce documentary
evidence before the committee, as provided in this section.
SEC. 408. REQUESTS FOR REVIEW OF CANADIAN ANTIDUMPING AND
COUNTERVAILING DUTY DETERMINATIONS.

Regulations.

(a) REQUESTS FOR REVIEW BY THE UNITED STATES.—In the case of a
final antidumping or countervailing duty determination of a competent investigating authority of Canada, as defined in article 1911
of the Agreement, requests by the United States for binational panel
review under article 1904 of the Agreement shall be made by the
United States Secretary, described in article 1909(4) of the
Agreement.
Ot)) REQUESTS FOR REVIEW BY A PERSON.—In the case of a final
antidumping or countervailing duty determination of a competent
investigating authority of Canada, as defined in article 1911 of the
Agreement, a person, within the meaning of article 1904(5) of the
Agreement, may request a binational panel review of such determination by filing with the United States Secretary, described in
article 1909(4) of the Agreement, such a request within the time
limit provided for in article 1904(4) of the Agreement. The receipt of
such request by the United States Secretary shall be deemed to be a
request for binational panel review within the meaning of article
1904(4) of the Agreement. Such request shsdl contain such information and be in such form, manner, and style as the administering
authority shall prescribe by regulations. The request for such panel
review shall not preclude the United States, Canada, or any other
person from challenging before a binational panel the basis for a
particular request for review.
(c) SERVICE OF REQUEST FOR REVIEW.—Whenever binational panel
review is requested under this section, the United States Secretary
shall serve a copy of the request on all persons who would be
regarded as interested parties to the proceeding if the determination
in question had been made under title VII of the Tariff Act of 1930.
SEC. 409. SUBSIDIES.
(a) NEGOTIATING AUTHORITY.—

President of U.S.
Contracts.

(1) The President is authorized to enter into an agreement
with Canada, including an sigreement to amend the Agreement,
on rules applicable to trade between the United States and
Canada that—

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1895

(A) deal with unfair pricing and government subsidization, and
(B) provide for increased discipline on subsidies.
(2XA) The objectives of the United States in negotiating an
agreement under paragraph (1) include (but are not limited
to)—
(i) achievement, on an expedited basis, of increased discipline on government production and export subsidies that
have a significant impact, directly or indirectly, on bilateral
trade between the United States and Canada; and
"^
(ii) attainment of increased and more effective discipline
on those Canadian Government (including provincial) subsidies having the most significant adverse impact on United
States producers that compete with subsidized products of
Canada in the markets of the United States and Canada.
(B) Special emphasis should be given in negotiating £in agree- Business and
ment under paragraph (1) to obtain discipline on Canadian industry.
subsidy programs that adversely affect United States industries
which directly compete with subsidized imports.
(3) The United States members of the working group established under article 1907 of the Agreement shall—
(A) consult regularly with the Committee on Finance of
the Senate, the Committee on Ways and Means of the
House of Representatives, and advisory committees established under section 135 of the Trade Act of 1974 (19 U.S.C.
2155) regarding—
(i) the issues being considered by the working group,
and
(ii) as appropriate, the objectives and strategy of the
United States in the negotiations, and
(B) beginning in January 1990, submit an annual report Reports.
to such Congressional C!ommittees on the progress being
made in the negotiations to obtain an agreement that meete
the objectives described in paragraph (2).
(4) Notwithstanding any other provision of this Act or of any
other law, the provisions of section 151 of the Trade Act of 1974
(19 U.S.C. 2191) shall not apply to any bill or joint resolution
that implements an agreement entered into under paragraph
(1), unless the President determines and notifies the Congress
that such agreement—
(A) will provide greater discipline over government subsidies and no less discipline over unfair pricing practices by
producers than that provided by the agreements described
in paragraphs (5) and (6) of section 2 of the Trade Agreements Act of 1979 (the Subsidies Code and Antidumping
Code), respectively, taking into account the effects of the
Agreement, and
(B) will neither undermine such multilateral discipline
nor detract from United States efforts to increase such
discipline on a multilateral basis in, or subsequent to, the
Uruguay Round of multilateral trade negotiations.
Ok)) IDENTIFICATION OF INDUSTRIES FACING SUBSIDIZED IMPORTS.—

(1) Any entity, including a trade Eissociation, firm, certified or
recc^nized union, or group of workers, that is representative of
a United States industry and has reason to believe that—
(AXi) as a result of implementation of provisions of the
Agreement, the industry is likely to face increased competi-

102 STAT. 1896

Records.

PUBLIC LAW 100-449—SEPT. 28, 1988
tion from subsidized Canadian imports with which it directly competes; or
(ii) the industry is likely to face increased competition
from subsidized imports with which it directly competes
from any other country designated by the President, following consultations with the Congress, as benefitting from a
reduction of tariffs or other trade barriers under a trade
agreement that enters into force after January 1,1989; and
(B) the industry is likely to experience a deterioration of
its competitive position before rules and disciplines relating
to the use of government subsidies have been developed
with respect to such country;
may file a petition with the United States Trade Representative
(hereafter referred to in this section as the "Trade Representative") to be identified under this section.
(2) Within 90 days of receipt of a petition under paragraph (1),
the Trade Representative, in consultation with the Secretary of
Commerce, shall decide whether to identify the industry on the
basis that there is a reasonable likelihood that the industry may
face both the subsidization described in paragraph (IXA) and the
deterioration described in paragraph (IXB).
(3) At the request of an entity that is representative of an
industry identified under paragraph (2), the Trade Representative shall—
(A) compile and make available to the industry information under section 305 of the Trade Act of 1974,
(B) recommend to the President that an investigation by
the United States International Trade Commission be requested under section 332 of the Tariff Act of 1930, or
(C) take actions described in both subparagraphs (A)
and(B).
The industry may request the Trade Representative to take
appropriate action to update (as often as annually) any information obtained under subparagraph (A) or (B), or both, as the case
may be, until an agreement on adequate rules and disciplines
relating to government subsidies is reached.
(4XA) The Trade Representative and the Secretary of Commerce shall review information obtained under paragraph (3)
and consult with the industry identified under paragraph (2)
with a view to deciding whether any action is appropriate under
section 301 of the Trade Act of 1974, including the initiation of
an invest^ation under section 302(c) of that Act (in the case of
the Trade Representative), or under subtitle A of title VII of the
Tariff Act of 1930, including the initiation of an investigation
under section 702(a) of that Act (in the case of the Secretary of
Commerce).
(B) In determining whether to initiate any investigation
under section 301 of the Trade Act of 1974 or any other trade
law, other than title VII of the Tariff Act of 1930, the Trade
Representative, after consultation with the Secretary of
Commerce—
(i) shall seek the advice of the advisory committees established under section 135 of the Trade Act of 1974;
(ii) shall consult with the Committee on Finance of the
Senate and the Committee on Ways and Means of the
House of Representatives;

PUBLIC LAW 100-449—SEPT. 28, 1988

102 STAT. 1897

(iii) shall coordinate with the interagency committee
established under section 242 of the Trade Expansion Act of
1962; and
(iv) may ask the President to request advice from the
United States International Trade Commission.
(C) In the event an investigation is initiated under section President of U.S.
302(c) of the Trade Act of 1974 as a result of a review under this
paragraph and the President, following such investigation
(including any applicable dispute settlement proceedings under
the Agreement or any other trade agreement), determines to
take action imder section 301(a) of such Act, the President shall
give preference to actions that most directly affect the products
that benefit from governmental subsidies and were the subject
of the investigation, unless there are no significant imports of
such products or the President otherwise determines that application of the action to other products would be more effective.
(5) Any decision, whether positive or negative, or any action
by the Trade Representative or the Secretary of Commerce
under this section shall not in any way—
(A) prejudice the right of any industry to file a petition
under any trade law,
(B) prejudice, affect, or substitute for, any proceeding,
investigation, determination, or action by the Secretary of
Commerce, the United States Intemationed Trade (Commission, or the Trade Representative pursuant to such a
petition,
(C) prejudice, affect, substitute for, or obviate any
proceeding, investigation, or determination under section
301 of the Trade Act of 1974, title VII of the Tariff Act of
1930, or any other trade law.
(6) Nothing in this subsection may be construed to alter in
any manner the requirements in effect before the enactment of
this Act for standing under any law of the United States or to
add any additional requirements for standing under any law of
the United States.
SEC. 410. TERMINATION OF AGREEMENT.
(a) I N GENERAL.—If^

President of U.S.

(1) no agreement is entered into between the United States Reports.
and Canada on a substitute system of rules for antidumping and
countervailing duties before the date that is 7 years after the
date on which the Agreement enters into force, and
(2) the President decides not to exercise the rights of the
United States under article 1906 of the Agreement to terminate
the Agreement,
the President shall submit to the Congress a report on such decision
which explains why continued adherence to the Agreement is in the
national economic interest of the United States.
(b) TRANSITION PROVISIONS.—

(1) If on the date on which the ^ r e e m e n t should cease to be
in force an investigation or enforcement proceeding concerning
the violation of a protective order issued under section 777(d) of
the Tariff Act of 1930 (as amended by this Act) or a Canadian
undertaking is pending, such investigation or proceeding shall
continue and sanctions may continue to be imposed in accordance with the provisions of such section.

102 STAT. 1898

PUBLIC LAW 100-449—SEPT. 28, 1988
(2) If on the date on which the Agreement should cease to be
in force a binational panel review under article 1904 of the
Agreement is pending, or has been requested, with respect to a
determination to which section 516A(g)(2) of the Tariff Act of
1930 (as added by this Act) applies, such determination shall be
reviewable under section 516A(a) of the Tariff Act of 1930. In
the case of a determination to which the provisions of this
paragraph apply, the time limits for commencing an action
under section 516A(a)(2)(A) of the Tariff Act of 1930 shall not
begin to run until the date on which the Agreement ceases to be
in force.

19 u s e 2112
note.

TITLE V—EFFECTIVE DATES AND
SEVERABILITY
SEC. 501. EFFECTIVE DATES.

(a) IN GENERAL.—Except as provided in subsection (b), the provisions of this Act, and the amendments made by this Act, shall take
effect on the date the Agreement enters into force.
(h) EXCEPTIONS.—Sections 1 and 2, title I, section 304 (except
subsection (f)), section 309, this section and section 502 shall take
effect on the date of enactment of this Act.
(c) TERMINATION OF PROVISIONS AND AMENDMENTS IF AGREEMENT

TERMINATES.—On the date on which the Agreement ceases to be in
force, the provisions of this Act (other than this subsection and
section 410(b)), and the amendments made by this Act, shall cease to
have effect.
SEC. 502. SEVERABILITY.

If any provision of this Act, any amendment made by this Act, or
the application of such a provision or amendment to any person or
circumstances is held to be invalid, the remainder of this Act, the
remaining amendments made by this Act, and the application of
such provision or amendment to persons or circumstances other
than those to which it is held invalid, shall not be affected thereby.
Approved September 28, 1988.

LEGISLATIVE HISTORY—H.R. 5090:
HOUSE REPORTS: No. 100-816, Pt. 1 (Comm. on Ways and Means), Pt. 2 (Comm. on
Interior and Insular Affairs), Pt. 3 (Comm. on Foreign Affairs),
Pt. 4 (Comm. on the Judiciary), Pt. 5 (Comm. on Banking, Finance
and Urban Affairs), Pt. 6 (Comm. on Government Operations), Pt.
7 (Comm. on Energy and Commerce), and Pt. 8 (Comm. on
Agriculture).
SENATE REPORTS: No. 100-509 (Comm. on Finance; Comm. on Agriculture, Nutrition, and Forestry; Comm. on Energy and Natural Resources;
and Comm. on Governmental Affairs).
CONGRESSIONAL RECORD, Vol. 134 (1988):
Aug. 9, considered and passed House.
Sept. 19, considered and p£issed Senate.