< Back to H.R. 11970 (87th Congress, 1961–1962)

Text of the An Act to promote the general welfare, foreign policy, and security of the United States through international trade agreements and ...

...trade agreements and through adjustment assistance to domestic industry, agriculture, and labor, and for other purposes

This bill was enacted on October 11, 1962. The text of the bill below is as of Oct 11, 1962 (Passed Congress/Enrolled Bill).

872                                      PUBUC LAW 87.794-OCT. 11, 1%2                      [76 STAT.


                      Public Law 87-794
October 11. 1962                                        AN ACT
 [H. R. l l » 7 a j   To promote the general welfare, foreign policy, and security of the United States
                        through international trade agreements and through adjustment assistance to
                        domestic industry, agriculture, and labor, and for other purposes.

                       Be it eimcted hy the Senate and House of Representatives                oj the
                      United States of America in Congress assemhledy

 Trade Expansion
Act of 1 9 6 2 .
                       TITLE I—SHORT TITLE AND PURPOSES
                      SEC. 101. SHORT TITLE.
                        This Act may be cited as the "Trade Expansion Act of 1962".
                      SEC. 102. STATEMENT OF PURPOSES.
                       The purposes of this Act are, through trade agreements affording
                      mutual trade benefits—
                             (1) to stimulate the economic growth of the United States and
                         maintain and enlarge foreign markets for the products of United
                          States agriculture, industry, mining, and commerce;
                             (2) to strengthen economic relations with foreign countries
                         through the development of open and nondiscriminatory trading
                          in the free world; and
                             (3) to prevent Communist economic penetration.

                              TITLE II—TRADE AGREEMENTS
                                    CHAPTER 1—GENERAL AUTHORITY
                      SEC. 201. BASIC AUTHORITY FOR TRADE AGREEMENTS.
                         (a) Whenever the President determines that any existing duties or
                      other import restrictions of any foreign country or the United States
                      are unduly burdening and restricting the foreign trade of the United
                      States and that any of the purposes stated in section 102 will be pro-
                      moted thereby, the President may—
                              (1) after June 30, 1962, and before July 1, 1967, enter into
                           trade agreements with foreign countries or instrumentalities
                           thereof; and
                              (2) proclaim such modification or continuance of any existing
                           duty or other import restriction, such continuance of existing
                           duty-free or excise treatment, or such additional import restric-
                           tions, as he determines to be required or appropriate to carry out
                           any such trade agreement.
                         (b) Except as otherwise provided in this title, no proclamation
                      pursuant to subsection (a) shall be made—
                              (1) decreasing any rate of duty to a rate below 50 percent of
                           the rate existing on July 1,1962; or
                              (2) increasing any rate of dut^ to (or imposing) a rate more
                           than 60 percent above the rate existing on July 1, 1934.
                      SEC. 202. LOW-RATE ARTICLES.
                         Section 201(b) (1) shall not apply in the case of any article for
                      which the rate of duty existing on July 1, 1962, is not more than 5
                      percent ad valorem (or ad valorem equivalent). I n the case of an
                      article subject to more than one rate oi duty, the preceding sentence
                      shall be applied by taking into account the aggregate of such rates.

76 STAT. ] PUBLIC LAW 87-794-OCT. 11, 1962 873 CHAPTER 2—SPECIAL PROVISIONS CONCERNING EUROPEAN ECONOMIC COMMUNITY SEC. 211. IN GENERAL. (a) I n the case of any trade agreement with the European Eco- nomic Community, section 201 (b) (1) shall not apply to articles in any category if, before entering into such trade agreement, the President determines with respect to such category that the United States and all countries of the European Economic Community together ac- counted for 80 percent or more of the aggregated world export value of all the articles in such category. (b) F o r purposes of subsection (a) — (1) As soon as practicable after the date of the enactment of this Act, the President shall— (A) after taking into account the availability of trade statistics, select a system of comprehensive classification of articles by category, and (B) make public his selection of such system. (2) As soon as practicable after the President has selected a system pursuant to paragraph (1), the Tariff Commission shall— (A) determine the articles falling within each category of such system, and (B) make public its determinations. The determination of the Tariff Commission as to the articles in- cluded in any category may be modified only by the Tariff Com- mission. Such modification by the Tariff Commission may be made only for the purpose of correction, and may be made only before the date on which the first list of articles specifying this section is furnished by the President to the Tariff Commission pursuant to section 221. (c) F o r the purpose of making a determination under subsection (a) with respect to any category— (1) The determination of the countries of the European Economic Community shall be made as of the date of the request under subsection ( d ) . (2) The President shall determine "aggregated world export value" with respect to any category of articles— (A) on the basis of a period which he determines to be representative for such category, which period shall be included in the most recent 5-year period before the date of the request under subsection (d) for which statistics are available and shall contain at least 2 one-year periods, (B) on the basis of the dollar value of exports as shown by trade statistics in use by the Department of Commerce, and (C) by excluding exports— (i) from any country of the European Economic Community to another such country, and (ii) to or from any country or area which, at any time during the representative period, was denied trade agree- ment benefits under section 231, or under section 5 of the Trade Agreements Extension Act of 1951, or under es stat. 73; section 401(a) of the Tariff Classification Act of 1962. ^^^''^Ic^f^^a (d) Before the President makes a determination under subsection Ante, p. 78. (a) with respect to any category, the Tariff Commission shall (upon request of the President) make findings as to— (1) the representative period for such category, (2) the aggregated world export value of the articles falling Avithin such category, and
874 PUBLIC LAW 87-794-OCT. 11, 1962 [76 STAT. (3) the percentage of the aggregated world export value of such articles accounted for by the United States and the countries of the European Economic Community, and shall advise the President of such findings. (e) The exception to section 201(b) (1) provided by subsection (a) shall not apply to any article referred to in Agricultural Handbook No. 143, United States Department of Agriculture, as issued in September 1959. SEC. 212. AGRICULTURAL COMMODITIES. I n the case of any trad© agreement with the European Economic Community, section 201(b) (1) shall not apply to any article referred to in Agricultural Handbook No. 143, United States Department of Agriculture, as issued in September 1959, if before entering into such agreement the President determines that such agreement will tend to assure the maintenance or expansion of United States exports of the like article. SEC. 213. TROPICAL AGRICULTURAL AND FORESTRY COMMODITIES. (a) Section 201 (b) (1) shall not apply to any article if, before enter- ing into the trade agreement covering such article, the President determines that— (1) such article is a tropical agricultural or forestry com- modity ; (2) the like article is not produced in significant quantities in the United States; and (3) the European Economic Community has made a commit- ment with respect to duties or other import restrictions which is likely to assure access for such article to the markets of the Euro- pean Economic Community which— (A) is comparable to the access w^hich such article will have to the markets of the United States, and (B) will be afforded substantially without differential treatment as among free world countries of origin, (b) F o r purposes of subsection ( a ) , a "tropical agricultural or forestry commodity" is an agricultural or forestry commodity with respect to which the President determines that more than one-half of the world production is in the area of the world between 20 degrees north latitude and 20 degrees south latitude. (c) Before the President makes a determination under subsection (a) with respect to any article, the Tariff Commission shall (upon request of the President) make findings as to— (1) whether or not such article is an agricultural or forestiy commodity more than one-half of the world production of which is in the area of the world between 20 degrees north latitude and 20 degrees south latitude, and (2) whether or not the like article is produced in significant quantities in the United States, and shall advise tlie President of such findings. CHAPTER 3—REQUIREMENTS CONCERNING NEGOTIATIONS SEC. 221. TARIFF COMMISSION ADVICE. (a) I n connection with any proposed trade agreement under this title, the President shall from time to time publish and furnish the Tariff' Commission with lists of articles which may be considered for modification or continuance of United States duties or other import restrictions, or continuance of United States duty-free or exise treat- ment. I n the case of any article with respect to which consideration
76 STAT. ] PUBLIC LAW 87-794-OCT. 11, 1962 875 may be given to reducing the rate of duty below the 50 percent limita- tion contained in section 201(b) (1), the list shall specify the section or sections of this title pursuant to which such consideration may be given. (b) Within 6 months after receipt of such a list, the Tariff Com- mission shall advise the President with respect to each article of its judgment as to the probable economic effect of modifications of duties or other import restrictions on industries producing like or directly competitive articles, so as to assist the President in making an in- formed judgment as to the impact that might be caused by such modifications on United States industry, agriculture, and labor. (c) I n preparing its advice to the President, the Tariff Commission shall, to the extent practicable— (1) investigate conditions, causes, and effects relating to compe- tition between the foreign industries producing the articles in question and the domestic industries producing the like or directly competitive articles; (2) analyze the production, trade, and consumption of each like or directly competitive article, taking into consideration employ- ment, profit levels, and use of productive facilities with respect to the domestic industries concerned, and such other economic fac- tors in such industries as it considers relevant, including prices, wages, sales, inventories, patterns of demand, capital investment, obsolescence of equipment, and diversification of production; (3) describe the probable nature and extent of any significant change in employment, profit levels, use of productive facilities and such other conditions as it deems relevant in the domestic industries concerned which it believes such modifications would cause; and (4) make special studies (including studies of real wages paid in foreign supplying countries), whenever deemed to be war- ranted, of particular proposed modifications affecting United States industry, agriculture, and labor', utilizing to the fullest extent practicable the facilities of United States attaches abroad and other appropriate personnel of the United States, (d) I n preparing its advice to the President, the Tariff Commission shall, after reasonable notice, hold public hearings. SEC. 222. ADVICE FROM DEPARTMENTS. Before any trade agreement is entered into under this title, the President shall seek information and advice with respect to such agreement from the Departments of Agriculture, Commerce, Defense, Interior, Labor, State, and Treasury, and from such other sources as he may deem appropriate. SEC. 223. PUBLIC HEARINGS. I n connection with any proposed trade agreement under this title, the President shall afford an opportunity for any interested person to present his views concerning any article on a list published pursuant to section 221, any article which should be so listed, any concession which should be sought by the United States, or any other matter relevant to such proposed trade agreement. For this purpose, the President shall designate an agency or an interagency committee Designation of which shall, after reasonable notice, hold public hearings, shall pre- agency by presi- scribe regulations governing the conduct of such hearings, and shall furnish the President with a summary of such hearings. SEC. 224. PREREQUISITE FOR OFFERS. The President may make an offer for the modification or continu- ance of any duty or other import restriction, or continuance of duty- free or excise treatment, with respect to any article only after he has
876 PUBLIC LAW 87-794-OCT. 11, 1962 [76 STAT. received advice concerning such article from the Tariff Commission under section 221(b), or after the expiration of the relevant 6-month period provided for in that section, whichever first occurs, and only after the President has received a summary of the hearings at which an opportunity to be heard with respect to such article has been afforded under section 223. SEC. 225. RESERVATION OF ARTICLES FROM NEGOTIATIONS. (a) While there is in effect with respect to any article any action taken under— (1) section 232,351, or 352, (2) section 2(b) of the Act entitled "An Act to extend the authority of the President to enter into trade agreements under section 350 of the Tariff Act of 1930, as amended", approved July 72 Stat. 678. 1,1954 (19U.S.C.,sec. 1352a),or (3) section 7 of the Trade Agreements Extension Act Of 1951 65 Stat. 74. (19 U.S.C., SCC. 1364) , Post, p. 882. ^j^g President shall reserve such article from negotiations under this title for the reduction of any duty or other import restriction or the elimination of any duty. (b) During the 5-year period which begins on the date of the enact- ment of this Act, the President shall reserve an article (other than an article which, on the date of the enactment of this Act, was described in subsection (a) (3)) from negotiation under this title for the reduc- tion of any duty or other import restriction or the elimination of any duty where— (1) pursuant to secticai 7 of the Trade Agreements Extension Act of 1951 (or pursuant to a comparable Executive Order), the Tariff Commission found by a majority of the Commissioners voting that such article was being imported in such increased quantities as to cause or threaten serious injury to an industry, (2) such article is included in a list furnished to the Tariff Commission pursuant to section 221 (and has not been included in a prior list so furnished), and (3) upon request on behalf of the industry, made not later than 60 days after the date of the publication of such list, the Tariff Commission finds and advises the President that economic con- ditions in such industry have not substantially improved since the date of the report of the finding referred to in paragraph (1). (c) In addition to the articles described by subsections (a) and (b), the President shall also so reserve any other article which he determines to be appropriate, taking into consideration the advice of the Tariff' Commission under section 221(b), any advice furnished to him under section 222, and the summary furnished to hiin under section 223. SEC. 226. TRANSMISSION OF AGREEMENTS TO CONGRESS. The President shall transmit promptly to each House of Congress a copy of each trade agreement entered into under this title, together with a statement, in the light of the advice of the Tariff Commission under section 221(b) and of other relevant considerations, of his reasons for entering into the agreement. CHAPTER 4—NATIONAL SECURITY SEC. 231. PRODUCTS OF COMMUNIST COUNTRIES OR AREAS. The President shall, as soon as practicable, suspend, withdraw, or prevent the application of the reduction, elimination, or continuance of any existing duty or other import restriction, or the continuance of any existing duty-free or excise treatment, proclaimed in carrying out any trade agreement under this title or under section 350 of the 48 Stat. 943; Tariff Act of 1930, to products, whether imported directly or in- Post, pp. 881-883. 19 u s e 13S1,
76 STAT.] PUBLIC LAW 87-794-OCT. 11, 1962 877 directly, of any country or area dominated or controlled by Communism. SEC. 232. SAFEGUARDING NATIONAL SECURITY. (a) No action shall be taken pursuant to section 201 (a) or pursuant to section 350 of the Tariff Act of 1930 to decrease or eliminate the 48 Stat. 943; Post, pp. 881-883. duty or other import restriction on any article if the President deter- 19 u s e 1 3 5 1 . mines that such reduction or elimination would threaten to impair the national security. (b) LTpon request of the head of any department or agency, upon Office of Emer- gency Planning. application of an interested party, or upon his own motion, the Direc- Investigation by tor of the Office of Emergency Planning (hereinafter in this section Director. referred to as the "Director") shall immediately make an appropriate investigation, in the course of which he shall seek information and advice from other appropriate departments and agencies, to determine the effects on the national security of imports of the article which is the subject of such request, application, or motion. If, as a result of such investigation, the Director is of the opinion that the said article is being imported into the LTnited States in such quantities or under Such circumstances as to threaten to impair the national security, he shall promptly so advise the President, and, unless the President determines that the article is not being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security as set forth in this section, he shall take such action, and for such time, as he deems necessary to adjust the imports of such article and its derivatives so that such imports will not so threaten to impair the national security. (c) For the purposes of this section, the Director and the President Domestic pro- duction for na- shall, in the light of the requirements of national security and with- tional defense. out excluding other relevant factors, give consideration to domestic production needed for projected national defense requirements, the capacity of domestic industries to meet such requirements, existing and anticipated availabilities of the human resources, products, raw materials, and other supplies and services essential to the national defense, the requirements of growth of such industries and such sup- plies and services including the investment, exploration, and develop- ment necessary to assure such growth, and the importation of goods in terms of th6ir quantities, availabilities, character, and use as those affect such industries and the capacity of the United States to meet national security requirements. I n the administration of this section, Foreign compe- the Director and the President shall further recognize the close rela- tition, impact on tion of the economic welfare of the Nation to our national security, domestic indus- tries. and shall take into consideration the impact of foreign competition on the economic welfare of individual domestic industries; and any substantial unemployment, decrease in revenues of government, loss of skills or investment, or other serious effects resulting from the dis- placement of any domestic products by excessive imports shall be con- sidered, without excluding other factors, in determining whether such weakening of our internal economy may impair the national security. (d) A report shall be made and published upon the disposition of each request, application, or motion under subsection (b). The Direc- tor shall publish procedural regulations to give effect to the authority conferred on him oy subsection (b).
878 PUBLIC LAW 87-794~OCT. 11, 1962 [76 STAT. C H A P T E R 5—ADMINISTRATIVE P R O V I S I O N S SEC. 241. SPECIAL REPRESENTATIVE FOR TRADE NEGOTIATIONS. Appointment by (a) The President shall appoint, by and with the advice and consent President. ^f ^j^g Senate, a Special Representative for Trade Negotiations, who shall be the chief representative of the United States for each negotia- tion under this title and for such other negotiations as in the Presi- dent's judgment require that the Special Representative be the chief representative of the United States, and who shall be the chairman of the organization established pursuant to section 242(a). The Special Representative for Trade Negotiations shall hold office at the pleasure of the President, shall be entitled to receive the same compensation and allowances as a chief of mission, and shall have the rank of ambassador extraordinary and plenipotentiary. (b) The Special Representative for Trade Negotiations shall, in the performance of his functions under subsection ( a ) , seek informa- tion and advice with respect to each negotiation from representatives of industry, agriculture, and labor, and from such agencies as he deems appropriate. SEC. 242. INTERAGENCY TRADE ORGANIZATION. (a) The President shall establish an interagency organization to assist him in carrying out the functions vested in him by this title and sections 351 and 352. Such organization shall, in addition to the Spe- cial Representative for Trade Negotiations, be composed of the heads of such departments and of such other officers as the President shall designate. I t shall meet at such times and with respect to such matters as the President or the chairman of the organization shall direct. The organization may invite the participation in its activities of any agency not represented in the organization when matters of interest to such agency are under consideration. (b) In assisting the President, the organization shall— (1) make recommendations to the President on basic policy issues arising in the administration of the trade agreements program, (2) make recommendations to the President as to what action, if any, he should take on reports with respect to tariff adjustment submitted to him by the Tariff Commission under section 301 (e), (3) advise the President of the results of hearings concerning foreign import restrictions held pursuant to section 252(d), and recommend appropriate action with respect thereto, and (4) perform such other functions with respect to the trade agreements program as the President may from time to time designate. (c) The organization shall, to the maximum extent practicable, draw upon the resources of the agencies represented in the organiza- tion, as well as such other agencies as it may determine, including the Tariff Commission. I n addition, the President may establish by regu- lation such procedures and committees as he may determine to be necessary to enable the organization to provide for the conduct of hearings pursuant to section 252(d), and for the carrying out of other functions assigned to the organization pursuant to this section. SEC. 243. CONGRESSIONAL DELEGATES TO NEGOTIATIONS. Before each negotiation under this title, the President shall, upon the recommendation of the Speaker of the House of Representatives, select two members (not of the same political party) of the Com- mittee on Ways and Means, and shall, upon the recommendation of the President of the Senate, select two members (not of the same political party) of the Committee on Finance, who shall be accredited as members of the United States delegation to such negotiation.
76 STAT.] PUBLIC LAW 87-794-OCT. 11, 1962 879 C H A P T E R 6—GENERAL P R O V I S I O N S SEC. 251. MOST-FAVORED-NATION PRINCIPLE. Except as otherwise provided in this title, in section 350(b) of the Tariff Act of 1,930, or in section 401(a) of the Tariff Classification P o s t , p. 881. Act of 1962, any duty or other import restriction or duty-free treat- Ante, p. 78. ment proclaimed in carrying out any trade agreement under this title or section 350 of the Tariff Act of 1930 shall apply to products 48 Stat. 943; Post, pp. 881-883. of all foreign countries, whether imported directly or indirectly. 19 u s e 1351. SEC. 252. FOREIGN IMPORT RESTRICTIONS. (a) Whenever unjustifiable foreign import restrictions impair the value of tariff commitments made to the United States, oppress the commerce of the United States, or prevent the expansion of trade on a mutually advantageous basis, the President shall— (1) take all appropriate and feasible steps within his power to eliminate such restrictions, (2) refrain from negotiating the reduction or elimination of any United States import restriction under section 201(a) in order to obtain the reduction or elimination of any such restric- tions, and (3) notwithstanding any provision of any trade agreement under this Act and to the extent he deems necessary and appropri- ate, impose duties or other import restrictions on the products of any foreign country or instrumentality establishing or maintain- ing such foreign import restrictions against United States agri- cultural products, when he deems such duties and other import restrictions necessary and appropriate to prevent the establish- ment or obtain the removal of such foreign import restrictions and to provide access for United States agricultural products to the markets of such country or instrumentality on an equitable basis. (b) Whenever a foreign country or instrumentality the products of which receive benefits of trade agreement concessions made by the United States— (1) maintains nontariff trade restrictions, including variable import fees, which substantially burden United States commerce in a manner inconsistent with provisions of trade agreements, or (2) engages in discriminatory or other acts (including toler- Discriminatory ance of international cartels) or policies unjustifiably restricting acts. United States commerce, the President shall, to the extent, that such action is consistent with the purposes of section 102— (A) suspend, withdraw, or prevent the application of benefits Suspension, etc., of trade agreement concessions to products of such country or of benefits. instrumentality, or (B) refrain from proclaiming benefits of trade agreement con- cessions to carry out a trade agreement with such country or instrumentality. (c) Whenever a foreign country or instrumentality, the products of Unreasonable import restric- which receive benefits of trade agreement concessions made by the tions. United States, maintains unreasonable import restrictions which either directly or indirectly substantially burden United States commerce, the President may, to the extent that such action is consistent with the purposes of section 102, and having due regard for the international obligations of the United States— (1) suspend, withdraw, or prevent the application of benefits of trade agreement concessions to products of such country or instrumentality, or
880 PUBLIC LAW 87-794-OCT. 11, 1962 [76 STAT. (2) refrain from proclaiming benefits of trade agreement con- cessions to carry out a trade agreement with such country or instrumentality, (d) The President shall provide an opportunity for the presenta- tion of views concerning foreign import restrictions which are referred to in subsections ( a ) , ( b ) , and (c) and are maintained against United States commerce. Upon request by any interested person, the Presi- dent shall, through the organization established pursuant to section 242(a), provide for appropriate public hearings with respect to such restrictions after reasonable notice and provide for the issuance of regulations concerning the conduct of such hearings. SEC. 253. STAGING REQUIREMENTS. (a) Except as otherwise provided in this section and in section 254, the aggregate reduction in the rate of duty on any article which is in effect on any day pursuant to a trade agreement under this title shall not exceed the aggregate reduction which would have been in effect on such day if— (1) one-fifth of the total reduction under such agreement for such article had taken effect on the date of the first proclamation pursuant to section 201(a) to carry out such trade agreement, and (2) the remaining four-fifths of such total reduction had taken effect in four equal installments at 1-year intervals after the date referred to in paragraph (1). (b) Subsection (a) shall not apply to any article with respect to which the President has made a determination under section 213(a). (c) I n the case of an article the rate of duty on which has been or is to be reduced pursuant to a prior trade agreement, no reduction shall take effect pursuant to a trade agreement entered into under section 201(a) before the expiration of 1 year after the taking effect of the final reduction pursuant to such prior agreement. (d) If any part of a reduction takes effect, then any time thereafter during which such part of the reduction is not in effect by reason of legislation of the IJnited States or action thereunder shall be ex- cluded in determining— (1) the 1-year intervals referred to in subsection (a) (2), and (2) the expiration of the 1 year referred to in subsection (c). SEC. 254. ROUNDING AUTHORITY. If the President determines that such action will simplify the com- putation of the amount of duty imposed with respect to an article, he may exceed the limitation provided by section 201(b) (1) or 253 by not more than whichever of the following is lesser: (1) the difference between the limitation and the next lower whole number, or (2) one-half of 1 percent ad valorem or an amount the ad valo- rem equivalent of which is one-half of 1 percent. SEC. 255. TERMINATION. (a) Every trade agreement entered into under this title shall be sub- ject to termination or withdrawal, upon due notice, at the end of a period specified in the agreement. Such period shall be not more than 3 years from the date on which the agreement becomes effective. If the agreement is not terminated or withdrawn from at the end of the period so specified, it shall be subject to termination or withdrawal thereafter upon not more than 6 months' notice. (b) The President may at any time terminate, in whole or in part, any proclamation made under this title.
76 STAT. ] PUBLIC LAW 87-794-OCT. 11, 1962 881 SEC. 256. DEFINITIONS. For purposes of this title— (1) The term "European Economic Community" means the instrumentality known by such name or any successor thereto. (2) The countries of the European Economic Community as of any date shall be those countries which on such date are agreed to achieve a common external tariff through the European Economic Community. (3) The term "agreement with the European Economic -Com- munity" means an agreement to which the United States and all countries of the European Economic Community (determined as of the date such agreement is entered into) are parties. For pur- poses of the preceding sentence, each country for which the European Economic Community signs an agreement shall be treated as a party to such agreement. (4) The term "existing on July 1,1962", as applied to a rate of duty, refers to the lowest nonpreferential rate of duty (however established, and even though temporarily suspended by Act of Congress or otherwise) existing on such date or (if lower) the lowest nonpreferential rate to which the United States is com- mitted on such date and which may be proclaimed under section 350 of the Tariff Act of 1930. 48 stat. 943; (5) The term "existing on July 1, 1934", as applied to a rate Jp'l'82^°883. of duty, refers to the rate of duty (however established, and even 19 use i3si. though temporarily suspended by Act of Congress or otherwise) existing on such date. (6) The term "existing" without the specification of any date, when used with respect to any matter relating to entering into, or any proclamation to carry out, a trade agreement, means existing on the day on which such trade agreement is entered into, and, when referring to a rate of duty, refers to the rate of duty (how- ever established, and even though temporarily suspended by Act of Congress or otherwise) existing on such day. (7) The term "ad valorem equivalent" means the ad valorem equivalent of a specific rate or, in the case of a combination of rates including a specific rate, the sum of the ad valorem equiv- alent of the specific rate and of the ad valorem rate. The ad valorem equivalent shall be determined by the President on the basis of the value of imports of the article concerned during a period determined by him to be representative. In determining the value of imports, the President shall utilize, to the maximum extent practicable, the standards of valuation contained in section 402 or 402a of the Tariff Act of 1930 (19 U . S . C , sec. 1401a or 1402) applicable to the article concerned during such representa- 70 stat. 943. tive period. ^^ stat. 708. SEC. 257. RELATION TO OTHER LAWS. (a) The first sentence of subsection (b) of section 350 of the Tariff Act of 1930 is amended by striking out "this section" each place it 48 stat. 943. appears and inserting in lieu thereof "this section or the Trade Expan- ^^ ^^^ ^^'^^ sion Act of 1962". The second sentence of such subsection (b) is amended by striking out "this Act" and inserting in lieu thereof "this Act or the Trade Expansion Act of 1962". The third sentence of such subsection (b) is amended by striking out "1955," in paragraph (2) and inserting in lieu thereof "1955, and before July 1, 1962," and by adding at the end thereof the following new paragraph: "(3) In order to carry out a foreign trade agreement entered into after June 30,1962, and before July 1,1967, below the lowest rate permissible by applying title I I of the Trade Expansion Act of 1962 to the rate of duty (however established, and even though 78135 0-63—59
882 PUBLIC LAW 87-794-OCT. 11, 1962 [76 STAT temporarily suspended by Act of Congress or otherwise) existing oh July 1,1962, with respect to-such product." Repeal. (b) Subsections (a) (5) and (e) of section 350 of the Tariff Act of 69 Stat. 164, 165; 1930 are repealed. 72 Stat. 673. (c) For purposes only of entering into trade agreements pursuant to the notices of intention to negotiate published in the Federal Eegis- 25 F.R. 4764, ter of May 28, 1960, and the Federal Register of November 23, 1960, 11119. the period during which the President is authorized to enter into 48 Stat. 943; foreign trade agreements under section 350 of the Tariff Act of 1930 Ante, p. 881; is hereby extended from the close of June 30, 1962, until the close of Post, p. 883. 19 u s e 1351. December 31, 1962. (d) The second and third sentences of section 2(a) of the Act entitled "An Act to amend the Tariff Act of 1930", approved June 48 Stat. 944. 12, 1934, as amended (19 U . S . C , sec. 1352(a)), are each amended by striking out "this Act" and inserting in lieu thereof "this Act or the Trade Expansion Act of 1962". Repeal. (e) (1) Sections 5,6,7, and 8 (a) of the Trade Agreements Extension 65 Stat. 73. Act of 1951 are repealed. 19 u s e 1362- 1365. (2) Action taken by the President under section 5 of such Act and in effect on the date of the enactment of this Act shall be considered as Ante, p. 876. having been taken by the President under section 231. (3) Any investigation by the Tariff Commission under section 7 of such Act which is in progress on the date of the enactment of this P o s t , p. 883. Act shall be continued under section 301 as if the application by the interested party were a petition under such section for tariff adjust- ment under section 351. For purposes of section 301 ( f ) , such petition shall be treated as having been filed on the date of the enactment of this Act. Repeal. (f) Section 2 of the Act entitled "An Act to extend the authority of the President to enter into trade agreements under section 350 of the 72 Stat. 678. Tariff Act of 1930, as amended", approved July 1, 1954, is repealed. 19 u s e 1352a. Any action (including any investigation begun) under such section 2' before the date of the enactment of this Act shall be considered as having been taken or begun under section 232. Ante, p. 74. ( g ) ( 1 ) Section 102(1) of the Tariff Classification Act of 1962 is amended by striking out "of schedules 1 to 7, inclusive,". Ante, p. 75. (2) Section 203 of the Tariff Classification Act of 1962 is amended to read as follows: "SEC. 203. For purposes of applying sections 323 and 350 of the Post, p. 883. Tariff Act of 1930, as amended, and the Trade Expansion Act of 1962 Supra. with respect to the Tariff Schedules of the United States— "(1) The rate of duty in rate column numbered 2 for each item in schedules 1 to 7, inclusive, of the Tariff Schedules of the United States shall be treated as the rate of duty existing on July 1,1934. " (2) The lowest preferential or nonpreferential rate of duty in rate column numbered 1 for each item in schedules 1 to 7, inclusive, of the Tariff Schedules of the United States on the effective date Ante, p. 78. provided in section 501 (a) of this Act shall be treated as the lowest preferential or nonpreferential rate of duty, respectively, existing on July 1,1962; except that in the case of any such item included Ante, p. 73. in a supplemental report made pursuant to section 101(c) of this Act to reflect a change proclaimed by the President after July 1, 1962 (other than a change to which the United States was com- mitted on July 1, 1962), the rate treated as the lowest nonprefer- ential rate of duty existing on July 1,1962, shall be the rate which the Commission specifically declares in such supplemental report to be the rate which, in its judgment, conforms to the fullest extent practicable to the rate regarded as existing on July 1,1962, under section 256(4) of the Trade Expansion Act of 1962.
76 STAT. ] PUBLIC LAW 87-794-OCT. 11, 1962 883 "(3) Legislation entering into force after the effective date pro- vided for in section 501 (a) of this Act which results in the perma- Ante, p. 78. nent reclassification of any article without specifying the rate of duty applicable thereto, and proclamations under section 202(c) of this Act, shall be considered as having been in effect since June Ante, p. 75. 30,1962." (h) Nothing contained in this Act shall be construed to affect in any way the provisions of section 22 of the Agricultural Adjustment Act, or to apply to any import restriction heretofore or hereafter 64stat.26i. imposed under such section. ^ ^^^ ^^^" (i) P a r t I of title I I I of the Tariff Act of 1930 is amended by 19 use 1301 et adding at the end thereof the following new section: ®®'" "SEC. 323. CONSERVATION OF FISHERY RESOURCES. "Upon the convocation of a conference on the use or conservation of international fishery resources, the President shall, by all appropri- ate means at his disposal, seek to persuade countries whose domestic fishing practices or policies affect such resources, to engage in negotia- tions in good faith relating to the use or conservation of such resources. If, after such efforts by the President and by other coun- tries which have agreed to engage in such negotiations, any other country whose conservation practices or policies affect the interests of the United States and such other countries, has, in the judgment of the President, failed or refused to engage in such negotiations in good faith, the President may, if he is satisfied that such action is likely to be effective in inducing such country to engage in such negotiations in good faith, increase the rate of duty on any fish (in any form) which is the product of such country, for such time as he deems neces- sary, to a rate not more than 50 percent above the rate existing on July 1, 1934." SEC. 258. REFERENCES. All provisions of law (other than this Act and the Trade Agree- ments Extension Act of 1951) in effect after June 30, 1962, referring es stat. 72. to section 350 of the Tariff Act of 1930, to that section as amended, to J^l^^^ ^^^^ the Act entitled "An Act to amend the Tariff Act of 1930", approved June 12, 1934, to that Act as amended, or to agreements entered into, 48 stat. 943; or proclamations issued, under any of such provisions, shall be con- ^^raf' **^'®*^* strued, unless clearly precluded by the context, to refer also to this 19 use usi. Act, or to agreements entered into or proclamations issued, pursuant to this Act. TITLE III—TARIFF ADJUSTMENT AND OTHER ADJUSTMENT ASSISTANCE CHAPTER 1—ELIGIBILITY FOR ASSISTANCE SEC. 801. TARIFF COMMISSION INVESTIGATIONS AND REPORTS. (a) (1) A petition for tariff adjustment under section 351 may be filed with the Tariff Commission by a trade association, firm, certified or recognized union, or other representative of an industry. (2) A petition for a determination of eligibility to apply for ad- justment assistance under chapter 2 may be filed with the Tariff Com- mission by a firm or its representative, and a petition for a determina- tion of eligibility to apply for adjustment assistance under chapter 3 may be filed with the Tariff Commission by a group of workers or by their certified or recognized union or other duly authorized repre- sentative.
884 PUBLIC LAW 87-794-OCT. 11, 1962 [76 STAT. Investigation bjr (3) Whenever a petition is filed under this subsection, the Tariff Tariff Commis- Commission shall transmit a copy thereof to the Secretary of sion. Commerce. (b) (1) Upon the request of the President upon resolution of either the Committee on Finance of the Senate or the Committee on Ways and Means of the House of Representatives, upon its own motion, or upon the filing of a petition under subsection (a) (1), the Tariff Com- mission shall promptly make an investigation to determine whether, as a result in major part of concessions granted under trade agree- ments, an article is being imported into the United States in such increased quantities as to cause, or threaten to cause, serious injury to the domestic industry producing an article which is like or directly competitive with the imported article. (2) I n making its determination under paragraph (1), the Tariff Commission shall take into account all economic factors which it con- siders relevant, including idling of productive facilities,.inability to operate at a level of reasonable profit, and unemployment or under- employment. (3) For purposes of paragraph (1), increased imports shall be con- sidered to cause, or threaten to cause, serious injury to the domestic industry concerned when the Tariff Commission fiiids that such in- creased imports have been the major factor in causing, or threatening to cause, such injury. (4) No investigation for the purpose of paragraph (1) shall be made, upon petition filed under subsection (a) (1), with respect to the same subject matter as a previous investigation under paragraph (1), unless one year has elapsed since the Tariff Commission made its re- port to the President of the results of such previous investigation. (c) (1) I n the case of a petition by a firm for a determination of Petition by a eligibility to apply for adjustment assistance under chapter 2, the firm. Tariff Commission shall promptly make an investigation to determine whether, as a result in major p a r t of concessions granted under trade agreements, an article like or directly competitive with an article pro- duced by the firm is being imported into the United States in such increased quantities as to cause, or threaten to cause, serious injury to such firm. I n making its determination under this paragraph, the Tariff Commission shall take into account all economic factors which it considers relevant, including idling of productive facilities of the firm, inability of the firm to operate at a level of reasonable profit, and unemployment or underemployment in the firm. Petition by (2) I n the case of a petition by a group of workers for a deter- group of workers. .mination of eligibility to apply for adjustment assistance under chapter 3, the Tariff Commission shall promptly make an investiga- tion to determine whether, as a result in major part of concessions granted under trade agreements, an article like or directly competitive with an article produced by such workers' firm, or an appropriate subdivision thereof, is being imported into the United States in such increased quantities as to cause, or threaten to cause, unemployment or underemployment of a significant number or proportion of the workers of such firm or subdivision. (3) For purposes of paragraphs (1) and (2), increased imports shall be considered to cause, or threaten to cause, serious injury to a firm or unemployment or underemployment, as the case may be, when the Tariff Commission finds that such increased imports have been the major factor in causing, or threatening to cause, such injury or unem- ployment or underemployment.
76 STAT.] PUBLIC LAW 87-794-OCT. 11, 1962 885 (d) (1) I n the course of any investigation under subsection (b) (1), the Tariff Commission shall, after reasonable notice, hold public hear- ings and shall afford interested parties opportunity to be present, to produce evidence, and to be heard at such hearings. (2) I n the course of any investigation under subsection (c) (1) or ( c ) ( 2 ) , the Tariff Commission shall, after reasonable notice, hold public hearings if requested by the petitioner, or if, within 10 days after notice of the filing of the petition, a hearing is requested by any other party showing a proper interest in the subject matter of the investigation, and shall afford interested parties an opportunity to be present, to produce evidence, and to be heard at such hearings. (e) Should the Tariff Commission find with respect to any article, as the result of its investigation, the serious injury or threat thereof described in subsection (b), it shall find the amount of the increase in, or imposition of, any duty or other import restriction on such article which is necessary to prevent or remedy such injury and shall include such finding in its report to the President. (f) (1) The Tariff Commission shall report to the President the Report to Presi- results of each investigation under this section and include in each dent. report any dissenting or separate views. The Tariff Commission shall furnish to the President a transcript of the hearings and any briefs which may have been submitted in connection with each investigation. (2) The report of the Tariff Commission of its determination under subsection (b) shall be made at the earliest practicable time, but not later than 6 months after the date on which the petition is filed (or the date on which the request or resolution is received or the motion is adopted, as the case may be). Upon making such report to the President, the Tariff Commission shall promptly make public such report, and shall cause a summary thereof to be published in the Publication in Federal Register. F. R. (3) The report of the Tariff Commission of its determination under subsection (c)(1) or (c)(2) with respect to any firm or group of work- ers shall be made at the earliest practicable time, but not later than 60 days after the date on which the petition is filed. (g) Except as j)rovided in section 257(e) (3), no petition shall be filed under subsection ( a ) , and no request, resolution, or motion shall be made under subsection ( b ) , prior to the close of the 60th day after the date of the enactment of this Act. SEC. 302. PRESIDENTIAL ACTION AFTER TARIFF COMMISSION DE- TERMINATION. (a) After receiving a report from the Tariff Commission containing an affirmative finding under section 301(b) with respect to any indus- try, the President may— (1) provide tariff adjustment for such industry pursuant to section 351 or 352, (2) provide, with respect to such industry, that its firms may request the Secretary of Commerce for certifications of eligibility to apply for adjustment assistance under chapter 2, (3) provide, with respect to such industry, that its workers may request the Secretary of Labor for certifications of eligibility to apply for adjustment assistance under chapter 3, or (4) take any combination of such actions. (b) (1) The Secretary of Commerce shall certify, as eligible to apply for adjustment assistance under chapter 2, any firm in an industrv with respect to which the President has acted under subsec- tion (a) (2), upon a showing by such firm to the satisfaction of the Secretary of Commerce that the increased imports (which the Tariff Commission has determined to result from concessions granted under
886 PUBLIC LAW 87-794-OCT. 11, 1%2 [76 STAT. trade agreements) have caused serious injury or threat thereof to such firm. (2) The Secretary of Labor Shall certify, as eligible t o apply for adjustment assistance under chapter 3, any group of workers in an industry with respect to which the President has acted under subsec- tion ( a ) ( 3 ) , upon a showing by such group of workers to the satisfac- tion of the Secretary of Labor that the increased imports (which the Tariff Commission has determined to result from concessions granted under trade agreements) have caused or threatened to cause unem- ployment or underemployment of a significant number or proportion of workers of such workers' firm or subdivision thereof. (c) After receiving a report from the Tariff Commission contain- ing an afiiianative finding under section 301(c) with respect to any firm or group of workers, the President may certify that such firm or group of workers is eligible to apply for adjustment assistance. (d) Any certification under subsection (b) or (c) that a group of workers is eligible to apply for adjustment assistance shall specify the date on which the unemployment or underemployment began or threatens to begin. (e) Whenever the President determines, with respect to any certifi- cation of the eligibility of a group of workers, that separations from the firm or subdivision thereof are no longer attributable to the con- ditions specified in section 301(c) (2) or in subsection (b) (2) of this section, he shall terminate the effect of such certification. Such ter- mination shall apply only with respect to separations occurring after the termination date specified by the President. CHAPTER 2—ASSISTANCE TO FIRMS SEC. 311. CERTIFICATION OF ADJUSTMENT PROPOSALS. (a) A firm certified under section 302 as eligible to apply for adjustment assistance may, at any time within 2 years after the date of such certification, file an application with the Secretary of Com- merce for adjustment assistance under this chapter. Within a reason- able time after filing its application, the firm shall present a proposal for its economic adjustment. (b) Adjustment assistance under this chapter consists of technical assistance, financial assistance, and tax assistance, which may be fur- nished singly or in combination. Except as provided in subsection (c), no adjustment assistance shall be provided to a firm under this chapter until its adjustment proposal shall have been certified by the Secretary of Commerce— (1) to be reasonably calculated materially to contribute to the economic adjustment of the firm, (2) to give adequate consideration to the interests of the work- ers of such firm adversely affected by actions taken in carrying out trade agreements, and (3) to demonstrate that the firm will make all reasonable efforts to use its own resources for economic development. (c) I n order to assist a firm which has applied for adjustment assistance under this chapter in preparing a sound adjustment pro- posal, the Secretary of Commerce may furnish technical assistance to such firm prior to certification of its adjustment proposal. (d) Any certification made pursuant to this section shall remain in force only for such period as the Secretary of Commerce may prescribe. SEC. 312. USE OF EXISTING AGENCIES. (a) The Secretary of Commerce shall refer each certified adjust- ment proposal to such agency or agencies as he determines to be appro- priate to furnish the technical and financial assistance necessary to carry out such proposal.
76 STAT. ] PUBLIC LAW 87-794-OCT. 11, 1962 887 (b) Upon receipt of a certified adjustment proposal, each agency concer|ied shall promptly— '(1) examine the aspects of the proposal relevant to its functions, and (2) notify the Secretary of Commerce of its deterhniriation as to the technical and financial assistance it is prepared to furnish to carry out the proposal. (c) Whenever and to the extent that any agency to which an adjust- ment proposal has been referred notifies the Secretary of Commerce of its determination not to furnish technical or financial assistance, and if the Secretary of Commerce determines that such assistance is necessary to carry out the adjustment proposal, he may furnish adjust- ment assistance under sections 313 and 314 to the firm concerned. (d) There are hereby authorized to be appropriated to the Secretary of Commerce such sums as may be necessary from time to time to carry out his functions under this chapter in connection with furnishing adjustment assistance to firms, which sums are authorized to be appro- priated to remain available until expended. SEC. 313. TECHNICAL ASSISTANCE. (a) Upon compliance with section 312(c), the Secretary of Com- merce may provide to a firm, on such terms and conditions as he determines to be appropriate, such technical assistance as in his judg- ment will materially contribute to the economic adjustment of the firm. (b) To the maximum extent practicable, the Secretaiy of Com- merce shall furnish technical assistance under this section and section 311(c) through existing agencies, and otherwise through private in- dividuals, firms, or institutions. (c) The Secretary of,Commerce shall require a firm receiving tech- nical assistance under this section or section 311(c) to share the cost thereof to the extent he determines to be appropriate. SEC. 314. FINANCIAL ASSISTANCE. (a) Upon compliance with section 312(c), the Secretary of Com- merce may provide to a firm, on such terms and conditions as he deter- mines to be appropriate, such financial assistance in the form of guar- antees of loans, agreements for deferred participations in loans, or loans, as in his judgment will materially contribute to the economic adjustment of the firm. The assumption of an outstanding indebted- ness of the firm, with or without recourse, shall be considered to be the making of a loan for purposes of this section. (b) Guarantees, agreements for deferred participations, or loans shall be made under this section only for the purpose of making funds available to the firm— (1) for acquisition, construction, installation, modernization, development, conversion, or expansion of land, plant, buildings, equipment, facilities, or machinery, or (2) in cases determined by the Secretary of Commerce to be exceptional, to supply working capital. (c) To the maximum extent practicable, the Secretary of Com- merce shall furnish financial assistance under this section through agencies furnishing financial assistance under other law. SEC. 315. CONDITIONS FOR FINANCIAL ASSISTANCE. (a) No loan shall be guaranteed and no agreement for deferred participation in a loan shall be made by the Secretary of Commerce in an amount which exceeds 90 percent of that portion of the loan made for purposes specified in section 314(b).
888 PUBLIC LAW87-794-0CT. 11, 1962 [76 STAT. (b) (1) Any loan made or deferred participation taken up by the Secretary of Commerce shall bear interest at a rate not less than the greater of— (A) 4 percent per annum, or (B) a rate determined by the Secretary of the Treasury for the year in which the loan is made or the agreement for such deferred participation is entered into. (2) The Secretary of the Treasury shall determine annually the rate referred to in paragraph (1) ( B ) , taking into consideration the current average market yields on outstanding interest-bearing mar- ketable public debt obligations of the United States of maturities comparable to those of the loans outstanding under section 314. (c) Guarantees or agreements for deferred participation shall be made by the Secretary of Commerce only with respect to loans bearing interest at a rate which he determines to be reasonable. I n no event shall the guaranteed portion of any loan, or the portion covered by an agreement for deferred participation, bear interest at a rate more than 1 percent per annum above the rate prescribed by subsection (b) (determined when the guarantee is made or the agreement is entered into), unless the Secretary of Commerce shall determine that special circumstances justify a higher rate, in which case such portion of the loan shall bear interest at a rate not more than 2 percent per annum above such prescribed rate. (d) The Secretary of Commerce shall make no loan or guarantee having a maturity in excess of 25 years, including renewals and extensions, and shall make no agreement for deferred participation in a loan which has a maturity in excess of 25 years, including renewals and extensions. Such limitation on maturities shall not, however, apply to— (1) securities or obligations received by the Secretary of Com- merce as claimant in bankruptcy or equitable reorganization, or as creditor in other proceedings attendant upon insolvency of the obligor, or (2) an extension or renewal for an additional period not exceeding 10 years, if the Secretary of Commerce determines that such extension or renewal is reasonably necessary for the orderly liquidation of the loan. (e) No financial assistance shall be provided under section 314 unless the Secretary of Commerce determines that such assistance is not otherwise available to the firm, from sources other than the United States, on reasonable terms, and that there is reasonable assurance of repayment by the borrower. (f) The Secretary of Commerce shall maintain operating reserves with respect to anticipated claims under guarantees and under agree- ments for deferred participation made under section 314. Such reserves shall be considered to constitute obligations for purposes of section 1311 of the Supplemental Appropriation Act, 1955 (31 U.S.C., 68 Stat. 830. SCC. 2 0 0 ) . SEC. 316. ADMINISTRATION OF FINANCIAL ASSISTANCE. (a) I n making and administering guarantees, agreements for deferred participation, and loans under section 314, the Secretary of Commerce may— (1) require security for any such guarantee, agreement, or loan, and enforce, waive, or subordinate such security; (2) assign or sell at public or private sale, or otherwise dispose of, upon such terms and conditions and for such consideration as he shall determine to be reasonable, any evidence of debt, contract, claim, personal property, or security assigned to or held by him in connection with such guarantees, agreements, or loans, and col-
76 STAT. ] PUBLIC LAW 87-794-OCT. 11, 1962 889 lect, compromise, and obtain deficiency judgments with respect to all obligations assigned to or held by him in connection with such guarantees, agreements, or loans until such time as such obligations may be referred to the Attorney General for suit or collection; (3) renovate, improve, modernize, complete, insure, rent, sell, or otherwise deal with, upon such terms and conditions and for such consideration as he shall determine to be reasonable, any real or personal property conveyed to or otherwise acquired by him in connection with such guarantees, agreements, or loans; (4) acquire, hold, transfer, release, or convey any real or per- sonal property or any interest therein whenever deemed necessary or appropriate, and execute all legal documents for such purposes; and (5) exercise all such other powers and take all such other acts as may be necessary or incidental to the carrying out of functions pursuant to section 314. (b) Any mortgage acquired as security under subsection (a) shall be recorded under applicable State law. SEC. 317. TAX ASSISTANCE. (a) I f - (1) to carry out an adjustment proposal of a firm certified pur- suant to section 311, such firm applies for tax assistance under this section within 24 months after the close of a taxable year and alleges in such application that it has sustained a net operating loss for such taxable year, (2) the Secretary of Commerce determines that any such alleged loss for such taxable year arose predominantly out of the carrying on of a trade or business which was seriously injured, during such year, by the increased imports which the Tariff Com- mission has determined to result from concessions granted under trade agreements, and (3) the Secretary of Commerce determines that tax assistance under this section will materially contribute to the economic ad- justment of the firm, then the Secretary of Commerce shall certify such determinations with respect to such firm for such taxable year. No determination or certification under this subsection shall constitute a determination of the existence or amount of any net operating loss for purposes of section 172 of the Internal Revenue Code of 1954. 26 use i72; Infra. (b) Effective with respect to net operating losses for taxable years ending after December 31, 1955, subsection (b) of section 172 of the Internal Revenue Code of 1954 (relating to net operating loss carry- ff''^^*';"^ backs and carryovers) is amended to read as follows: 72 Stat. 1678. Ante, p. 64 8. " ( b ) N E T OPERATING Loss CARRYBACKS AND CARRYOVERS.— " ( 1 ) YEARS TO WHICH LOSS MAY BE CARRIED.— " ( A ) (i) Except as provided in clause (ii), a net operat- ing loss for any taxable year ending after December 31,1957, shall be a net operating loss carryback to each of the 3 taxable years preceding the taxable year of such loss. "(ii) I n the case of a taxpayer with respect to a taxable year ending on or after December 31, 1962, for which a certification has been issued under section 317 of the Trade Expansion Act of 1962, a net operating loss for such taxable year shall be a net operating loss carryback to each of the 5 taxable years preceding the taxable year of such loss. " ( B ) Except as provided in subparagraph ( C ) , a net oper- ating loss for any taxable year ending after December 31, 1955, shall be a net operating loss carryover to each of the 5 taxable j ears following the taxable year of such loss.
890 PUBLIC LAW 87-794-OCT. 11^ 1962 [76 STAT. " ( C ) I n the case of a taxpayer which is a regulated trans- Ante, p. 6 ^9. portation corporation (as denned in subsection ( j ) ( l ) ) , a 2$ use 172. j^g^ operating loss for any taxable year ending after Decern-, ber 31, 1955, shall (except as provided in subsection (j)) be! a net operating loss carryover to each of the 7 taxable years following the taxable year of such loss. " (2) AMOUNT OF CARRYBACKS AND CA'RRYGVERS.—Except as pro- vided in subsections (i) and ( j ) , the entire amount of the net oper- ating loss for any taxable year (hereinafter in this section referred to as the 'loss year') shall be carried to the earliest of the taxable years to which (by reason of paragraph (1)) such loss may be carried. The portion of such loss which shall be carried to each of the other taxable years shall be the excess, if any, of the amount of such loss over the sum of the taxable income for each of the prior taxable years to which such loss may be carried. F o r purposes of the preceding sentence, the taxable income for any such prior taxable year shall be computed— " ( A ) with the modifications specified in subsection (d) other than paragraphs ( 1 ) , (4), and (6) thereof; and " ( B ) by determining the amount of the net operating loss deduction without regard to the net operating loss for the loss year or for any taxable year thereafter, and the taxable income so computed shall not be considered to be less than zero. "(3) SPECIAL RULES.— " ( A ) Paragraph (1) (A) (ii) shall apply only if— " ( i ) there has been filed, at such time and in such manner EIS may be prescribed by the Secretary or his delegate, a notice of filing of the application under sec- tion 317 of the Trade Expansion Act of 1962 for tax assistance, and, after its issuance, a copy of the certifica- tion under such section, and "(ii) the taxpayer consents in writing to the assess- ment, within such period as may be agreed upon with the Secretary or his delegate, of any deficiency for any year to the extent attributable to the disallowance of a deduction previously allowed with respect to such net operating loss, even though at the time of filing such consent the assessment of such deficiency would other- wise be prevented by the operation of any law or rule of law. " ( B ) I n the case of— 5 " ( i ) a partnership and its partners, or "(ii) an electing small business corporation under subchapter S and its shareholders, paragraph ( l ) ( A ) ( i i ) shall apply as determined under regu- lations prescribed by the Secretary or his delegate. Such paragraph shall apply to a net operating loss of a partner or such a shareholder only if it arose predominantly from losses in respect of which certifications under section 317 of the Trade Expansion Act of 1962 were filed under this section." (c) Subsection (h) of section 6501 of the Internal Eevenue Code of f2 Slat. 1663. 1954 (relating to limitations on assessment and collection in the case 26 tjsc 6501. QJ j^g^ operating loss carrybacks) is amended by inserting before the period: ", or within 18 months after the date on which the taxpayer sstpra. files in accordance with section 172(b) (3) a copy of the certification (with respect to such taxable year) issued under section 317 of the Trade Expansion Act of 1962, whichever is later".
76 STAT. ] PUBLIC LAW 87-794-OCT. 11, 1962 891 (d) Section 6511(d) (2) (A) of the Internal Revenue Code of 1954 esA stat.sos. (relating to special period of limitation on credit or refund with 26 use 65ii. respect to net operating loss carrybacks) is amended to read as follows: " ( A ) PERIOD OF LIMITATION.—If the claim for credit or refund relates to an overpayment attributable to a net operat- ing loss carryback, in lieu of the 3-year period of limitation prescribed in subsection ( a ) , the period shall be that period which ends with the expiration of the 15th day of the 40th month (or the 39th month, in the case of a corporation) fol- lowing the end of the taxable year of the net operating loss which results in such carryback, or the period prescribed in subsection (c) in respect of such taxable year, whichever expires later; except that— "(i) with respect to an overpayment attributable to a net operating loss carryback to any year on account of a certification issued to the taxpayer under section 317 of the Trade Expansion Act of 1962, the period shall not expire before the expiration of the sixth month follow- ing the month in which such certification is issued to the taxpayer, and "(ii) with respect to an overpayment attributable to the creation of, or an increase in, a net operating loss carryback as a result of the elimination of excessive prof- its by a renegotiation (as defined in section 1481(a) (1) SSA stat.362. ( A ) ) , the period shall not expire before September 1, 26 u s e 1481. 1959, or the expiration of the twelfth month following the month in which the agreement or order for the elimination of such excessive profits becomes final, which- ever is the later. I n the case of such a claim, the amount of the credit or refund may exceed the portion of the tax paid within the period pro- vided in subsection (b)(2) or (c), whichever is applicable, to the extent of the amount of the overpayment attributable to such carryback." SEC. 318. PROTECTIVE PROVISIONS. (a) Each recipient of adjustment assistance under section 313, 314, or 317 shall keep records which fully disclose the amount and disposi- tion by such recipient of the proceeds, if any, of such adjustment assistance, and which will facilitate an effective audit. The recipient shall also keep such other records as the Secretary of Commerce may prescribe. (b) The Secretary of Commerce and the Comptroller General of the United States shall have access for the purpose of audit and exami- nation to any books, documents, papers, and records of the recipient pertaining to adjustment assistance under sections 313, 314, and 317. (c) No adjustment assistance shall be extended under section 313, 314, or 317 to any firm unless the owners, partners, or officers certify to the Secretary of Commerce— (1) the names of any attorneys, agents, and other persons en- gaged by or en behalf of the firm for the purpose of expediting applications for such adjustment assistance, and (2) the fees paid or to be paid to any such person. (d) No financial assistance shall be provided to any firm under section 314 unless the owners, partners, or officers shall execute an agreement binding them and the firm for a period of 2 years after such financial assistance is provided, to refrain from employing, tendering any office or employment to, or retaining for professional services any person who, on the date such assistance or any part thereof was provided, or within one year prior thereto, shall have
892 PUBLIC L/VW 87-794-OCT. 11, 1962 [76 STAT. served as an officer, attorney, agent, or employee occupying a position or engaging in activities which the Secretary of Commerce shall have determined involve discretion with respect to the provision of such financial assistance. SEC. 319. PENALTIES. Whoever makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, or whoever willfully overvalues any security, for the purpose of influencing in any way the action of the Secretary of Commerce under this chapter, or for the purpose of obtaining money, property, or anything of value under this chapter, shall be fined not more than $5,000 or imprisoned for not more than two years, or both. SEC. 320. SUITS. I n providing technical and financial assistance under sections 313 and 314, the Secretary of Commerce may sue and be sued in any court of record of a State having general jurisdiction or in any United States district court, and jurisdiction is conferred upon such district court to determine such controversies without regard to the amount in controversy; but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against him or his prop- erty. Nothing in this section shall be construed to except the activities pursuant to sections 313 and 314 from the application of sections 62 Stat. 910, 507(b) and 2679 of title 28 of the United States Code, and of section 984; 75 Stat. 539. gg^ ^f ^^^ Keviscd Statutes (5 U . S . C , sec. 316). CHAPTER 3—ASSISTANCE TO WORKERS SEC. 321. AUTHORITY. The Secretary of Labor shall determine whether applicants are enti- tled to receive assistance under this chapter and shall pay or provide such assistance to applicants who are so entitled. Subchapter A—Trade Readjustment Allowances SEC. 322. QUALIFYING REQUIREMENTS. (a) Payment of a trade readjustment allowance shall be made to an adversely affected worker who applies for such allowance for any Aveek of unemployment which begins after the 30th day after the date of the enactment of this Act and after the date determined under sec- tion 302(d), subject to the requirements of subsections (b) and (c). (b) Total or partial separation shall have occurred— (1) after the date of the enactment of this Act, and after the date determined under section 302(d), and (2) before the expiration of the 2-year period beginning on the day on which the most recent determination imder section 302(d) was made, and before the termination date (if any) speci- fied under section 302(e). (c) Such worker shall have had— (1) in the 156 weeks immediately preceding such total or par- tial separation, at least 78 weeks of employment at wages of $15 or more a week, and (2) in the 52 weeks immediately preceding such total or partial separation, at least 26 weeks of employment at wages of $15 or more a week in a firm or firms with respect to which a determina- tion of unemployment or underemployment under section 302 has been made, or if data with respect to weeks of employment are not available, equiva- lent amounts of employmen,!^ computed under regulations prescribed by the Secretary of Labor. f^j^y 9/ ^ct- p; ^
76 STAT.] PUBLIC LAW 87-794-OCT. 11, 1%2 893 SEC. 323. WEEKLY AMOUNTS. (a) Subject to the other provisions of this section, the trade read- justment allowance payable to an adversely affected worker for a week of unemployment shall be an amount equal to 65 percent of his aver- age weekly wage or to 65 percent of the average weekly manufacturing wage, whichever is less, reduced by 50 percent of the amount of his remuneration for services performed during such week. (b) Any adversely affected worker who is entitled to trade read- justment allowances and who is undergoing training approved by the Secretary of Labor, including on-the-job training, shall receive for each week in which he is undergoing any such training, a trade readjustment allowance in an amount (computed for such week) equal to the amount computed under subsection (a) or (if greater) the amount of any weekly allowance for such training to which he would be entitled under any other Federal law for the training of workers, if he applied for such allowance. Such trade readjustment allowance shall be paid in lieu of any training allowance to which the worker would be entitled under such other Federal law. (c) The amount of trade readjustment allowance payable to an adversely affected worker under subsection (a) or (b) for any week shall be reduced by any amount of unemployment insurance which he has received or is seeking with respect to such week; but, if the appro- priate State or Federal agency finally determines that the worker was not entitled to unemployment insurance with respect to such week, the reduction shall not apply with respect to such week. (d) If unemployment insurance, or a training allowance under the Manpower Development and Training Act of 1962 or the Area Ante, p. 23. Redevelopment Act, is paid to an adversely affected worker for any 75 Stat. 47. week of unemployment with respect to which he would be entitled 42 u s e 2501 note. (determined without regard to subsection (c) or (e) or to any dis- qualification under section 327) to a trade readjustment allowance P o s t , p. 895. if he applied for such allowance, each such week shall be deducted from the total number of weeks of trade readjustment allowance otherwise payable to him under section 324(a) when he applies for a trade readjustment allowance and is determined to be entitled to such allowance. If the unemployment insurance or the training allowance paid to such worker for any week of unemployment is less than the amount of the trade readjustment allowance to which he would be entitled if he applied for such allowance, he shall receive, when he applies for a trade readjustment allowance and is determined to be entitled to such allowance, a trade readjustment allowance for such week equal to such difference. (e) Whenever, with respect to any week of unemployment, the total amount payable to an adversely affected worker as remuneration for services performed during such week, as unemployment insurance, as a training allowance referred to in subsection ( d ) , and as a trade readjustment allowance would exceed 75 percent of his average weekly wage, his trade readjustment allowance for such week shall be reduced by the amount of such excess. (f) The amount of any weekly payment to be m^de under this section which is not a whole dollar amount shall be rounded upward to the next higher whole dollar amount. (g) (1) If unemployment insurances is paid under a State law to an adversely affected worker for a week for which—
894 PUBLIC LAW 87-794-OCT. 11, 1962 [76 STAT. (A) he receives a trade readjustment allowance, or (B) he makes application for a trade readjustment allowance and would be entitled (determined without regard to subsection (c) or (e)) to receive such allowance, the State agency making such payment shall, unless it has been reim- bursed for such payment under other Federal law, be reimbursed from funds appropriated pursuant to section 337, to the extent such payment does not exceed the amount of the trade readjustment allow- ance which such worker would have received, or would have been entitled to receive, as the case may be, if he had not received the State payment. The amount of such reimbursement shall be determined by the Secretary of Labor on the basis of reports furnished to him by the State agency. (2) I n any case in which a State agency is reimbursed under para- graph (1) for payments of unemployment insurance made to an adversely affected worker, such payments, and the period of unemploy- ment of such worker for which such payments were made, may be disregarded under the State law (and for purposes of applying section 68A stat^440. 3303 of the Internal Kevenue Code of 1954) in determining whether 26 "' u s e 3303. '""'• Qj. j^Q^ j^j^ employer is entitled to a reduced rate of contributions per- mitted by the State law. SEC. 324. TIME LIMITATIONS ON TRADE READJUSTMENT ALLOW- ANCES. (a) Payment of trade readjustment allowances shall not be made to an adversely affected worker for more than 52 weeks, except that, in accordance with regulations prescribed by the Secretary of Labor— (1) such payments may be made for not more than 26 additional weeks to an adversely affected worker to assist him to complete training approved by the Secretary of Labor, or (2) such payments shall be made for not more than 13 addi- tional weeks to an adversely affected worker who had reached his 60th birthday on or before the date of total or partial separation. (b) Except for a payment made for an additional week specified in subsection ( a ) , a trade readjustment allowance shall not be paid for a week of unemployment beginning more than 2 years after the begin- ning of the appropriate week. A trade readjustment allowance shall notl)e paid for any additional week specified in subsection (a) if such week begins more than 3 years after the beginning of the appropriate week. The appropriate week for a totally separated worker is the week of his most recent total separation. The appropriate week for a partially separated worker is the week in respect of which he first receives a trade readjustment allowance following his most recent partial separation. SEC. 325. APPLICATION OF STATE LAWS. Except where inconsistent with the provisions of this chapter and subject to such regulations as the Secretary of Labor may prescribe, the availability and disqualification provisions of the State law— (1) under which an adversely affected worker is entitled to unemployment insurance (whether or not he has filed a claim for such insurance), or (2) if he is not so entitled to unemployment insurance, of the State in which he was totally or partially separated, shall apply to any such worker who files a claim for trade readjustment allowances. The State law so determined with respect to a separation of a worker shall remain applicable, for purposes of the preceding sentence, with respect .to such separation until such worker becomes entitled to unemployment insurance under another State law (whether or not he has filed a claim for such insurance).
76 STAT.] PUBLIC LAW 8 7 - 7 9 4 - O C T . U , 1962 895 Subchapter B—Training SEC. 326. IN GENERAL. (a) To assure that the readjustment of adversely affected workers ' shall occur as quickly and effectively as possible, with minimum reliance upon trade readjustment allowances under this chapter, every effort shall be made to prepare each such worker for full employment in accordance with his capabilities and prospective employment oppor- tunities. To this end, and subject to this chapter, adversely affected workers shall be afforded, where appropriate, the testing, counsel- ing, training, and placement services provided for under any Federal law. Such workers may also be afforded supplemental assistance necessary to defray transportation and subsistence expenses for sepa- rate maintenance when such training is provided in facilities which are not within commuting distance of their regular place of residence. The Secretary of Labor in defraying such subsistence expenses shall not afford any individual an allowance exceeding $5 a day; nor shall t he Secretary authorize any transportation expense exceeding the rate of 10 cents per mile. (b) To the extent practicable, before adversely affected workers are referred to training, the Secretary of Labor shall consult with such workers' firm and their certified or recognized union or other duly authorized representative and develop a worker retraining plan which provides for training such workers to meet the manpower needs of such firm, in order to preserve or restore the employment relationship between the workers and the firm. SEC. 327. DISQUALIFICATION FOR REFUSAL OF TRAINING, ETC. Any adversely affected worker who, without good cause, refuses to accept or continue, or fails to make satisfactory progress in, suit- able training to which he has been referred by the Secretary of Labor shall not thereafter be entitled to trade readjustment allowances until he enters or resumes training to which he has been so referred. Subchapter C—Relocation Allowances SEC. 328. RELOCATION ALLOWANCES AFFORDED. Any adversely affected worker who is the head of a family as defined in regulations prescribed by the Secretary of Labor and who has been totally separated may file an application for a relocation allowance, subject to the terms and conditions of this subchapter. SEC. 329. QUALIFYING REQUIREMENTS. (a) A relocation allowance may be granted only to assist an adversely affected worker in relocating within the United States and only if the Secretary of Labor determines that such worker cannot reasonably be expected to secure suitable employment in the com- muting area in which he resides and that such worker— (1) has obtained suitable employment affording a reasonable expectation of long-term duration in the area in which he wishes to relocate, or (2) has obtained a bona fide offer of such employment. (b) A relocation allowance shall not be granted to such worker unless— (1) for the week in which the application for such allowance is riled, he is entitled (determined without regard to section 323 (c) and (e)) to a trade readjustment allowance or would be so entitled (determined without regard to whether he filed applica- tion therefor) but for the fact that he has obtained the employ- ment referred to in subsection ( a ) ( 1 ) , and
8% PUBLIC LAW 87-794-OCT. 11, 1962 [76 STAT. (2) such relocation occurs within a reasonable period after the filing of such application or (in the case of a worker w^ho has been referred to training by the Secretary of Labor) within a reasonable period after the conclusion of such training. SEC. 330. RELOCATION ALLOWANCE DEFINED. "Relocation ai- For purposcs of tliis Subchapter, the term "relocation allowance" lowance.M meaus— (1) the reasonable and necessary expenses, as specified in regu- lations prescribed by the Secretary of Labor, incurred in trans- porting a worker and his family and their household effects, and (2) a lump sum equivalent to two and one-half times the average weekly manufacturing wage. Subchapter D—General Provisions SEC. 331. AGREEMENTS WITH STATES. (a) The Secretary of Labor is authorized on behalf of the United States to enter into an agreement with any State, or with any State agency. Under such an agreement, the State agency (1) as agent of the United States, will receive applications for, and will provide, assistance on the basis provided in this chapter, (2) where appropriate, will afford adversely affected workers who apply for assistance under this chapter testing, counseling, referral to training, and placement services, and (3) will otherwise cooperate with the Secretary of Labor and with other State and Federal agencies in providing assistance under this chapter. (b) Each agreement under this subchapter shall provide the terms and conditions upon which the agreement may be amended, suspended, or terminated. (c) Each agreement under this subchapter shall provide that unem- ployment insurance otherwise payable to any adversely affected worker will not be denied or reduced for any week by reason of any right to allowances under this chapter. SEC. 332. PAYMENTS TO STATES. (a) The Secretary of Labor shall from time to time certify to the Secretary of the Treasury for payment to each State which has entered into an agreement under section 331(1) the sums necessary to enable such State as agent of the United States to make payments of allow- ances provided for by this chapter, and (2) the sums reimbursable to a State pursuant to section 323(g). The Secretary of the Treasury, prior to audit or settlement by the General Accounting Office, shall make payment to the State in accordance with such certification, from the funds for carrying out the purposes of this chapter. Sums reim- bursable to a State pursuant to section 323(g) shall be credited to the account of such State in the Unemployment Trust F u n d and shall be used only for the payment of cash benefits to individuals with respect to their unemployment, exclusive of expenses of administration. (b) All money paid a State under this section shall be used solely for the purposes for which it is paid; and any money so paid which is not used for such purposes shall be returned, at the time specified in the agreement under this subchapter, to the Treasury and credited to current applicable appropriations, funds, or accounts from which pay- ments to States under this section may be made. (c) Any agreement under this subchapter may require any officer or employee of the State certifying payments or disbursing funds under the agreement, or otherwise participating in the performance of the agreement, to give a surety bond to the United States in such amount as the Secretary of Labor may deem necessary, and may provide for the payment of the cost of such bond from funds for carrying out the purposes of this chapter.
76 STAT.] PUBLIC LAW 87-794-OCT. 11, 1962 897 SEC. 333. LIABILITIES OF CERTIFYING AND DISBURSING OFFICERS. (a) No person designated by the Secretary of Labor, or designated pursuant to an agreement under this subchapter, as a certifying officer, shall, in the absence of gross negligence or intent to defraud the United States, be liable with respect to the payment of any allowance certified by him under this chapter. (b) No disbursing officer shall, in the absence of gross negligence or intent to defraud tne United States, be liable with respect to any payment by him under this chapter if it was based upon a voucher signed by a certifying officer designated as provided in subsection ( a ) . SEC. 334. RECOVERY OF OVERPAYMENTS. (a) If a State agency or the Secretary of Labor, or a court of competent jurisdiction finds that any person— (1) has made, or has caused to be made by another, a false statement or representation of a material fact knowing it to be false, or has knowingly failed or caused another to fail to disclose a material fact; and (2) as a result of such action has received any payment of allowances under this chapter to which he was not entitled, such person shall be liable to repay such amount to the State agency or the Secretary of Labor, as the case may be, or either may recover such amount by deductions from any allowance payable to such person under this chapter. Any such finding by a State agency or the Secre- tary of Labor may be made only after an opportunity for a fair hearing. (b) Any amount repaid to a State agency under this section shall be deposited into the fund from which payment was made. Any amount repaid to the Secretary of Labor under this section shall be returned to the Treasury and credited to the current applicable appro- priation, fund, or account from which payment was made. SEC. 335. PENALTIES. Whoever makes a false statement of a material fact knowing it to be false, or knowingly fails to disclose a material fact, for the purpose of obtaining or increasing for himself or for any other person any payment or assistance authorized to be furnished under this chapter or pursuant to an agreement under section 331 shall be fined not more than $1,000 or imprisoned for not more than one year, or both. SEC. 336. REVIEW. Except as may be provided in regulations prescribed by the Secre- tary of Labor to carry out his functions under this chapter, determina- tions under this chapter as to the entitlement of individuals for ad- justment assistance shall be final and conclusive for all purposes and not subject to review by any court or any other officer. To the maxi- mum extent practicable and consistent with the purposes of this chap- ter, such regulations shall provide that such determinations by a State agency will be subject to review in the same manner and to the same extent as determinations under the State law. SEC. 337. AUTHORIZATION OF APPROPRIATIONS. There are hereby authorized to be appropriated to the Secretary of Labor such sums as may be necessary from time to time to carry out his functions under this chapter in connection with furnishing adjust- ment assistance to workers, which sums are authorized to be appro- priated to remain available until expended. SEC. 338. DEFINITIONS. F o r purposes of this chapter— (1) The term "adversely affected employment" means employ- ment in a firm or appropriate subdivision of a firm, if workers of such firm or subdivision are eligible to apply for adjustment assistance under this chapter. 78135 0-63—60
898 PUBLIC LAW 87-794-OCT. 11, 1962 [76 STAT. (2) The term "adversely affected worker" means an individual who, because of lack of work in an adversely affected employ- ment— (A) has been totally or partially separated from such em- ployment, or (B) has been totally separated from employment with the firm in a subdivision of which such adversely affected employ- ment exists. (3) The term "average weekly manufacturing wage" means the national gross average weekly earnings of production work- ers in manufacturing industries for the latest calendar year (as officially published annually by the Bureau of Labor Statistics of the Department of Labor) most recently published before the period for which the assistance under this chapter is furnished. (4) The term "average weekly wage" means one-13th of the total wages paid to an individual in the high quarter. For pur- poses of this computation, the high quarter shall be that quarter in which the individual's total wages were highest among the first 4 of the last 5 completed calendar quarters immediately before the quarter in which occurs the week with respect to which the computation is made. Such week shall be the week in which total separation occurred, or, in cases where partial separation is claimed, an appropriate week, as defined in regulations prescribed by the Secretary of Labor. (5) The term "average weekly hours" means the average hours worked by the individual (excluding overtime) in the employ- ment from which he has been or claims to have been separated in the 52 weeks (excluding weeks during which the individual was sick or on vacation) preceding the week specified in the last sentence of paragraph (4). (6) The term "partial separation" means, with respect to an individual who has not been totally separated, that he has had his hours of work reduced to 80 percent or less of his average weekly hours in adversely affected employment and his wages reduced to 75 percent or less of his average weekly wage in such adversely affected employment. (7) The term "remuneration" means wages and net earnings derived from services performed as a self-employed individual. (8) The term "State" includes the District of Columbia and the Commonwealth of Puerto Rico; and the term "United States" when used in the geographical sense includes such Common- wealth. (9) The term "State agency" means the agency of the State which administers the State law. (10) The term "State law" means the unemployment insur- ance law of the State approved by the Secretary of Labor under 68A Stat. 443. section 3304 of the Internal Revenue Code of 1954. 26 u s e 3304. (11) The term "total separation" means the lajoff or severance of an individual from employment with a firm m which, or in a subdivision of which, adversely affected employment exists. (12) The term "unemployment insurance" means the unem- ployment insurance payable to an individual under any State law or Federal unemployment insurance law, including title 42 u s e 1361- X V of the Social Security Act, the Railroad Unemployment In- 1371; 45 u s e 367; surance Act, and the Temporary Extended Unemployment Com- 42 u s e 1400/ note. pensation Act of 1961. (13) The term "week" means a week as defined in the applica- ble State law.
76 STAT.] PUBLIC LAW 87-794-OCT. 11, 1962 899 (14) The term "week of unemployment" means with respect to an individual any week for which his remuneration for services performed during such week is less than 75 percent of his average weekly wage and in wiiich, because of lack of work— (A) if he has been totally separated, he worked less than the full-time week (excluding overtime) in his current occu- pation, or (B) if he has been partially separated, he worked 80 per- cent or less of his average weekly hours. CHAPTER 4—TARIFF ADJUSTMENT SEC. 351. AUTHORITY. (a) (1) After receiving an affirmative finding of the Tariff Com- mission under section 301(b) with respect to an industry, the Presi- dent may proclaim such increase in, or imposition of, any duty or other import restriction on the article causing or threatening to cause | serious injury to such industry as he determines to be necessary to ; prevent or remedy serious injury to such industry. (2) If the President does not, within 60 days after the date on which he receives such affirmative finding, proclaim the increase in, or imposition of, any duty or other import restriction on such article found and reported by the Tariff Commission pursuant to section 301(e) — (A) he shall immediately submit a report to the House of Rep- Presidentitd re- resentatives and to the Senate stating why he has not proclaimed port to Congress. such increase or imposition, and (B) such increase or imposition shall take effect (as provided in paragraph (3)) upon the adoption by both Houses of the Con- gress (within the 60-day period following the date on which the report referred to in subparagraph (A) is submitted to the House of Representatives and the Senate), by the yeas and nays by the affirmative vote of a majority of the authorized membership of each House, of a concurrent resolution stating in effect that the Senate and House of Representatives approve the increase in, or imposition of, any duty or other import restriction on the article found and reported by the Tariff Commission. For purposes of subparagraph ( B ) , in the computation of the 60-day period there shall be excluded the days on which either House is not in session because of adjournment of more than 3 days to a day cer- tain or an adjournment of the Congress sine die. The report referred to in subparagraph (A) shall be delivered to both Houses of the Con- gress on the same day and shall be delivered to the Clerk of the House of Representatives if the House of Representatives is not in session and to the Secretary of the Senate if the Senate is not in session. (3) In any case in which the contingency set forth in paragraph (2) (B) occurs, the President shall (within 15 days after the adoption of such resolution) proclaim the increase in, or imposition of, any duty or other import restriction on the article which was found and reported by the Tariff Commission pursuant to section 301(e). (4) The President may, within 60 days after the date on which he receives an affirmative finding of the Tariff' Commission under sec- tion 301 (b) with respect to an industry, request additional information from the Tariff Commission. The Tariff Commission shall, as soon as practicable but in no event more than 120 days after the date on Avhich it receives the President's request, furnish additional informa- tion with respect to such industry in a supplemental report. For pur- poses of paragraph (2), the date on which the President receives such supplemental report shall be treated as the date on which the Presi-
too PUBLIC LAW 87-794-OCT. 11, 1962 [76 STAT. dent received the affirmative finding of the Tariff Commission with respect to such industry. (b) No proclamation pursuant to subsection (a) shall be made— (1) increasing any rate of duty to a rate more than 50 percent above the rate existing on J u l y 1,1934, or, if the article is dutiable but no rate existed on July 1,1934, the rate existing at the time of the proclamation, (2) in the case of an article not subject to duty, imposing a duty in excess of 50 percent ad valorem. F o r purposes of paragraph (1), the term "existing on J u l y 1, 1934" has the meaning assigned to such term by paragraph (5) of section 256. (c) (1) Any increase in, or imposition of, any duty or other import restriction proclaimed pursuant to this section or section 7 of the Ante, p. 882. Trade Agreements Extension Act of 1951— 19 use 1364. ^^^ jjjj^y i3e reduced or terminated by the President when he determines, after taking into account the advice received from the Tariff Commission under subsection (d) (2) and after seeking advice of the Secretary of Commerce and the Secretary of Labor, that such reduction or termination is in the national interest, and (B) unless extended under paragraph (2), shall terminate not later than the close of the date which is 4 years (or, in the case of . any such increase or imposition proclaimed pursuant to such sec- tion 7, 5 years) after the effective date of the initial proclamation or the date of the enactment of this Act, whichever date is the later. (2) Any increase in, or imposition of, any duty or other import restriction proclaimed pursuant to this section or pursuant to section 7 of the Trade Agreements Extension Act of 1951 may be extended in whole or in part by the President for such periods (not in excess of 4 years at any one time) as he may designate if he determines, after taking into account the advice received from the Tariff Commission under subsection (d) (3) and after seeking advice of the Secretary of Commerce and the Secretary of Labor, that such extension is in the national interest. (d) (1) So long as any increase in, or imposition of, any duty or other import restriction pursuant to this section or pursuant to section 7 of the Trade Agreements Extension Act of 1951 remains in effect, the Tariff Commission shall keep under review developments with respect to the industry concerned, and shall make annual reports to the Presi- dent concerning such developments. (2) Upon request of the President or upon its own motion, the Tariff Commission shall advise the President of its judgment as to the prob- able economic effect on the industry concerned of the reduction or termination of the increase in, or imposition of, any duty or other import restriction pursuant to this section or section 7 of the Trade Agreements Extension Act of 1951. (3) Upon petition on behalf of the industry concerned, filed with the Tariff Commission not earlier than the date which is 9 months, and not later than the date which is 6 months, before the date any increase or imposition referred to in paragraph (1) or (2) of sub- section (c) is to terminate by reason of the expiration of the applicable period prescribed in paragraph (1) or an extension thereof under paragraph (2), the Tariff Commission shall advise the President of its judgment as to the probable economic effect on such industry of such termination. (4) I n advising the President under this subsection as to the probable economic effect on the industry concerned, the Tariff Com- mission shall take into account all economic factors which it considers
76 STAT.] PUBLIC LAW 87-794-OCT. 11, 1962 901 relevant, including idling of productive facilities, inability to operate at a level of reasonable profit, and unemployment or underemployment. (5) Advice by the Tariff Commission under this subsection shall be given on the basis of an investigation during the course of which the Tariff Commission shall hold a hearing at which interested persons shall be given a reasonable opportunity to be present, to produce evi- dence, and to be heard. (e) The President, as soon as practicable, shall take such action as he determines to be necessary to bring trade agreements entered into under section 350 of the Tariff Act of 1930 into conformity with the 48 stat. 943; provisions of this section. No trade agreement shall be entered into "^"'9 ulc lasi**^' under section 201(a) unless such agreement permits action in con- formity with the provisions of this section. SEC. 352. ORDERLY MARKETING AGREEMENTS. (a) After receiving an affirmative finding of the Tariff-Commission under section 301(b) with respect to an industry, the President may, in lieu of exercising the authority contained in section 351(a) (1) but subject to the provisions of sections 351 (a) (2), (3), and (4), negotiate international agreements with foreign countries limiting the export from such countries and the import into the United States of the article causing or threatening to cause serious injury to such industry, whenever he determines that such action would be more appropriate to prevent or remedy serious injury to such industry than action under section 351(a) (1). (b) I n order to carry out an agreement concluded under subsection Regulations, ( a ) , the President is authorized to issue regulations governing the entry or withdrawal from warehouse of the article covered by such agreement. In addition, in order to carry out a multilateral agree- ment concluded under subsection (a) among countries accounting for a significant part of world trade in the article covered by such agree- ment, the President is also authorized to issue regulations governing the entry or withdrawal from warehouse of the like article which is the product of countries not parties to such agreement. CHAPTER 5—ADVISORY BOARD SEC. 361. ADJUSTMENT ASSISTANCE ADVISORY BOARD. (a) There is hereby created the Adjustment Assistance Advisory Board, which shall consist of the Secretary of Commerce, as Chair- man, and the Secretaries of the Treasury, Agriculture, Labor, Interior, and Health, Education, and Welfare, the Administrator of the Small Business Administration, and such other officers as the President deems appropriate. Each member of the Board may designate an officer of his agency to act for him as a member of the Board. The Chairman may from time to time invite the participation of officers of other agencies of the executive branch, (b) A t the request of the President, the Board shall advise him and the agencies furnishing adjustment assistance pursuant to chap- ters 2 and 3 on the development of coordinated programs for such assistance, giving full consideration to ways of preserving and restor- ing the employment relationship of firms and workers where possible, consistent with sound economic adjustment. (c) The Chairman may appoint for any industry an industry com- mittee composed of members representing employers, workers, and the public, for the purpose of advising the Board. Members of any such committee shall, while attending meetings, be entitled to receive compensation and reimbursement as provided in section 401(3). The confuct of intei- provisions of section 1003 of the National Defense Education Aot of =^*' e'^^'^p^on. 1958 (20 U.S.C. 583) shall apply to members of such committee. 72 st«t. 1603.
902 PUBLIC LAW 8 7 - 7 9 4 - O C T . 1 1 , 1962 [76 STAT. TITLE IV—C^ENERAL PROVISIONS SEC. 401. AUTHORITIES. The head of any agency performing functions under this Act may— (1) authorize the head of any other agency to perform any of such functions; (2) prescribe such rules and regulations as may be necessary to perform such functions; and (3) to the extent necessary to perform such functions, procure the temporary (not in excess of one year) or intermittent services of experts or consultants or organizations thereof, including stenographic reporting services, by contract or appointment, and in such cases such services shall be without regard to the civil service and classification laws, and, except in the case of steno- graphic reporting services by organizations, without regard to section 3709 of the Revised Statutes (41 U.S.C. 5 ) . Any individ- ual so employed may be compensated at a rate not in excess of $75 per diem, and, while such individual is away from his home or regular place of business, he may be allowed transportation and not to exceed $16 per diem in lieu of subsistence and other expenses. SEC. 402. REPORTS. (a) The President shall submit to the Congress an annual report on the trade agreements program and on tariff adjustment and other adjustment assistance under this Act. Such report shall include information regarding new negotiations, changes made in duties and other import restrictions of the United States, reciprocal concessions obtained, changes in trade agreements in order to effectuate more fully the purposes of the trade agreements program (including the incor- poration therein of escape clauses), the results of action taken to obtain removal of foreign trade restrictions (including discriminatory restrictions) against United States exports, remaining restrictions, jind the measures available to seek their removal in accordance with the purposes of this Act, and other information relating to the trade agreements program and to the agreements entered into thereunder. (b) The Tariff Commission shall submit to the Congress, at least once a year, a factual report on the operation of the trade agreements program. SEC. 403. TARIFF COMMISSION. (a) I n order to expedite the performance of its functions under this Act, the Tariff Commission may conduct preliminary investiga- tions, determine the scope and manner of its proceedings, and con- solidate proceedings before it. (b) I n performmg its functions under this Act, the Tariff Com- mission may exercise any authority granted to it under any other Act. (c) The Tariff Commission shall at all times keep informed con- cerning the operation and effect of provisions relating to duties or other import restrictions of the United States contamed in trade agreements entered into under the trade agreements program. SEC. 404. SEPARABILITY. If any provision of this Act or the application of any provision to any circumstances or persons shall be held invalid, the validity of the remainder of^ this Act, and of the application of such provision to other circumstances or persons, shall not be affected thereby. SEC. 405. DEFINITIONS. For purposes of this Act— (1) The term "agency" includes any agency, department, board, wholly or partly owned corporation, instrumentality, commission, or establishment of the United States.
76 STAT.] PUBLIC LAW 87-795-OCT. 11, 1962 903 (2) The term "duty or other import restriction" includes (A) the rate and form of an import duty, and (B) a limitation, pro- hibition, charge, and exaction other than duty, imposed on impor- tation or imposed for the regulation of imports. (3) The term "firm" includes an individual proprietorship, partnership, joint venture, association, corporation (including a development corporation), business trust, cooperative, trustees in bankruptcy, and receivers under decree of any court. A firm, to- gether with any predecessor, successor, or affiliated firm controlled or substantially beneficially owned by substantially the same per- sons, may be considered a single firm where necessary to prevent unjustifiable benefits. (4) A n imported article is "directly competitive with" a domestic article at an earlier or later sta^e of processing, and a domestic article is "directly competitive with" an imported article at an earlier or later stage of processing, if the importation of the imported article has an economic effect on producers of the do- mestic article comparable to the effect of importation of articles in the same stage of processing as the domestic article. F o r purposes of this paragraph, the unprocessed article is at an earlier stage of processing. (5) A product of a country or area is an article which is the growth, produce, or manufacture of such country or area. (6) The term "modification", as applied to any duty or other import restriction, includes the elimination of any duty. Approved October 11, 1962, 12:15 p.m. Public Law 87-795 AN A C T October 11, 1962 To amend section 30.") of t h e Communications Act of 1934, as amended. [H. R. 11732] Be it enacted hy the Senate and House of Representatives of the United States of America in Congress assembled^ That section 305 of Foreign govern- the Communications Act of 1934, as amended, is further amended ment radio sti*- tions i n D. C. by addition of a new subsection as follows: 48 Stat. 1083. " ( d ) The provisions of sections 301 and 303 of this Act notwith- 47 u s e 305. standing, the President may, proAaded he determines it to be consistent with and in the interest of national security, authorize a foreign government, under such terms and conditions as he may prescribe, to construct and operate at the seat of government of the United States a low-power radio station in the fixed service at or near the site of the embassy or legation of such foreign government for transmission of its messages to points outside the United States, but only (1) where he determines that the authorization would be consistent with the national interest of the United States and (2) where such foreign government has provided reciprocal privileges to the United States to construct and operate radio stations within territories subject to its jurisdiction. Foreign government stations authorized pursuant to the provisions of this subsection shall conform to such rules and regulations as the President may prescribe. The authorization of such stations, and the renewal, modification, suspension, revocation, or other termination of such authority shall be in accordance with such procedures as may be established by the President and shall not be subject to the other provisions of this Act or of the Administrative Procedure Act." 60 Stat. 237,, Approved October 11, 1962. S u s e 1001 n o t e .