Any amount repaid to a State agency shall be deposited into the fund from which payment was made, and any amount repaid to the administering agency shall be credited to the current applicable fund from which payment was made.

SECTION 242. PENALTIES

This section imposes the same penalties as section 335 of the Trade Expansion Act provided for any person who knowingly makes false statements of, or fails to disclose material facts for the purpose of obtaining or increasing for himself or for any other individual any payment authorized to be paid under this chapter or under an agreement under section 237. The offenses are punishable by fines of not more than $1,000 or imprisonment for not more than one year, or both.

Section 243 authorizes the appropriation to the Secretary of such sums as may be necessary from time to time to carry out his functions under this chapter in connection with furnishing payments to workers. Section 243 further provides that sums which are authorized to be appropriated shall remain available until expended.

This provision covers not only payments but also the Secretary's functions throughout chapter 2 in connection with furnishing payments to workers. It includes, for example, funds for the Secretary's functions with respect to subchapter A, and the functions of the Tariff Commission thereunder. The authorization would not, however, include appropriations to defray the expense or cost of actual services furnished workers, under this or any other Federal law.

SECTION 244. TRANSITIONAL PROVISIONS

Subsection (a) provides that any worker covered by a certification issued under section 302(b) (2) or (c) of the Trade Expansion Act shall be entitled to the rights and privileges provided in the worker assistance chapter of that Act as existing prior to the date of enactment of this Act. Workers so covered may therefore apply for trade readjustment allowances under the terms and conditions of the Trade Expansion Act and will continue to receive assistance under that Act to the extent of their eligibility.

Subsection (b) provides for cases where a group of workers or their authorized representatives has filed a petition under section 301 (a) (2) of the Trade Expansion Act, such filing was more than four months prior to the effective date of this Act, the Tariff Commission has not rejected the petition, and the President or his delegate has not issued a certification under 302 (c) of the Trade Expansion Act to the petitioning group. In such circumstances, the group or its representative may file a new petition under section 221 of the Act, not later than 90 days after the effective date of the Act, and shall be entitled to the rights and privileges provided in this chapter. For purposes of section 223 (b) (1), the petition date shall be the original filing date under the Trade Expansion Act, and section 223(b)(2) shall not apply to workers covered by a certification issued pursuant to a petition meeting the requirements of this subsection.

Subsection (b) attempts to prevent inequitable cutoffs of assistance that would occur because pending Trade Expansion Act petitions may not be decided upon before the effective date of the new Act. While a group may file another petition under the new Act, workers covered by the petition may be ineligible for assistance because the new filing date is later than the original Trade Expansion Act filing. The provision in subsection (b) for using the earlier date in pending cases, and not applying the six-month cutoff of section 223 (b) (2), is intended to meet this problem.

Subsection (c) provides that the Tariff Commission shall make certain materials available to the Secretary on request. The data involved is derived from section 301 Trade Expansion Act investigations concluded within the two years before the date of enactment of this Act which did not lead to either affirmative or negative Presidential action under section 302(a)(3) or 302 (c) of the Trade Expansion Act.

SECTION 245. DEFINITIONS

This section, except for some deletions, substantially adopts the definitions of section 338 of the Trade Expansioin Act. Those terms which have been deleted are "average weekly manufacturing wage," "remuneration," "week," and "week of unemployment.

Subsection (1) defines "adversely affected employment" as work in those firms or subdivisions of firms the employees of which have been declared eligible to apply for assistance.

Subsection (2) defines "adversely affected worker" as an individual who has been partially or totally separated because of lack of work in the affected firm, or subdivision thereof, or totally separated from the firm in a subdivision of which such adversely affected employment exists.

Subsection (3) defines "average weekly wage." A person's average weekly wage is one-thirteenth of the total salary paid that person in that quarter, out of the first four of five completed quarters preceding his separation, in which the person's salary was the highest.

Subsection (4) defines "average weekly hours" as the average number of hours worked by the individual in the affected employment, and not including overtime, in the 52 weeks (excluding weeks of sickness or vacation) preceding the week in which partial or total separation occurred.

Subsection (5) defines "total separation" as the complete separation of the workr from the firm in which some adversely affected employment exists.

Subsection (6) defines "partial separation" as occurring when the worker has had his hours of work reduced to 80 percent or less of his average weekly hours and his wages reduced to 75 percent or less of his average weekly wage in the affected employment.

Subsection (7) defines "State" to include the District of Columbia and the Commonwealth of Puerto Rico and the "United States" to include both.

Subsection (8) defines "State agency" as the agency of the particular State which administers the relevant State law.

Subsection (9) defines "State law" as the unemployment insurance law of the particular State that was approved by the Secretary of Labor as provided by secction 3304 of the Internal Revenue Code of 1954.

Subsection (10) defines "unemployment insurance" as those unemployment benefits payable to an individual through any State or Federal unemployment insurance law.

SECTION 246. ADMINISTRATIVE PROVISION

This section provides that the Secretary shall prescribe necessary regulations to implement this chapter, in coordination with the Special Representative for Trade Negotiations.

TITLE III-RELIEF FROM UNFAIR TRADE PRACTICES

The purpose of this title is to consolidate and revise the four principal statutes dealing with unfair trade practices of foreign countries.

The first chapter deals with responses to unfair foreign import restrictions and export subsidies from foreign countries to third country markets which displace competitive United States exports. This chapter revises and updates section 252 of the Trade Expansion Act ("Foreign Import Restrictions").

The second chapter makes a number of amendments to the Antidumping Act of 1921. The third chapter contains amendments to section 303 of the Tariff Act of 1930 on countervailing duties, including their application to duty-free goods subject to an affirmative finding of injury to domestic industry.

The fourth chapter revises section 337 of the Tariff Act of 1930 with respect to patent infringements. Companion legislation will authorize the Federal Trade Commission to investigate and regulate unfair methods of competition in import trade other than patent infringement.

CHAPTER I-FOREIGN IMPORT RESTRICTIONS

SECTION 301. RESPONSES TO UNFAIR FOREIGN IMPORT RESTRICTIONS
AND EXPORT SUBSIDIES

This section revises and expands the authority of the President under section 252 of the Trade Expansion Act to respond to unreasonable or unjustifiable foreign trade restrictions or discriminatory or other acts which burden or restrict United States commerce.

1. Authority to Respond to Unfair Trade Practices

Subsection (a) authorizes the President to take action (retaliate) against any foreign country which (1) maintains unjustifiable or unreasonable tariff or

other import restrictions (including variable levies) which impair trade commitments made to the United States or which burden, restrict, or discriminate against United States trade; (2) engages in unjustifiable or unreasonable discriminatory or other acts or policies, such as nontariff barriers, which directly or indirectly burden or restrict United States trade; or (3) subsidizes its exports to third countries which substantially reduce sales of competitive United States exports to such countries.

"Unjustifiable" refers to restrictions or policies which are illegal or inconsistent with international obligations such as the GATT. "Unreasonable" refers to restrictions or policies which are not necessarily illegal but which, for example, nullify or impair benefits within the meaning of GATT Article XXIII. The President shall make the judgment as to what constitutes an unjustifiable or unreasonable measure and no GATT determination is required.

The President is required to take all appropriate and feasible steps to obtain the elimination of such restrictions or subsidies. The President has discretionary authority to refrain from providing benefits of trade agreement concessions to the country. He also may impose duties or other import restrictions at any level and for such time as he deems appropriate, on a most-favored-nation basis or only on the products imported from one or more offending foreign countries.

This subsection makes a number of changes in existing law. First, it removes the distinction formerly contained in section 252 (a) (3) of the Trade Expansion Act between agricultural and non-agricultural products, whereby the President had greater authority to retaliate against unjustifiable foreign import restrictions on agricultural products. The effect of this distinction in section 252 was to limit the President's authority to act against unfair practices on nonagricultural products to suspending, withdrawing, or preventing the application of trade agreements concessions. The new provision would enable the President to impose any type of import restriction against unfair foreign import restrictions or subsidies on any product.

Second, the subsection extends the President's retaliation authority to cases in which a foreign country provides subsidies or equivalent incentives in connection with its exports to third country markets which substantially reduce sales of competitive United States exports in those markets. This authority is not contained in secction 252 of the Trade Expansion Act.

Third, the subsection (a) authorizes action against "unreasonable" restrictions or other policies to the same extent authorized against "unjustifiable" restrictions. Section 252 provides less authority to deal with unreasonable than with unjustifiable measures. In particular, section 252 (c) required that the President, in taking action against "unreasonable" restrictions, have due regard for the international obligations of the United States.

While subsection (b) requires the President to consider the relationship to international obligations before he takes action under subsection (a), this requirement shall not constitute a limitation on the legal scope of the President's authority to take action in the national interest. However, it is intended that the President shall depart from international obligations only in rare cases where adequate international procedures for dealing with unjustifiable or unreasonable actions are not available.

Fourth, subsection (a) provides that the President may act on a mostfavored-nation basis or otherwise. Although in most cases relations might be taken only against one or more offending countries such as contemplated by GATT Article XXIII, cases could arise in which it is appropriate to act on a most-favored-nation basis, such as under GATT Article XXVIII.

2. Hearings

Subsection (c) parallels in a simplified manner the substance of section 252 (d) of the Trade Expansion Act. It requires the President to provide an opportunity for interested persons to bring to his attention any of the foreign restrictions, acts or policies referred to under subsection (a). However, the President may take action against foreign restrictions without awaiting these views.

CHAPTER 2-ANTIDUMPING DUTIES

SECTION 310. AMENDMENTS TO THE ANTIDUMPING ACT OF 1921

This section amends the Antidumping Act of 1921 to establish time limits on dumping investigations and revise the definitions of purchase price, and exporter's sales price. It also provides for hearings prior to final determinations by the Secretary of the Treasury and the Tariff Commission.

1. Time Limits

Subsection (a) amends section 210 (b) of the Antidumping Act to provide that the Secretary of the Treasury or his delegate must within six months or, in more complicated investigations, within nine months after a question of dumping is raised by or presented to him, make the determination required under present law as to whether there is reason to believe or suspect that the purchase price of imported merchandise is less, or the exporter's sales price is less or likely to be less, than the foreign market value or constructed value of the merchandise.

If the Secretary's determination is affirmative, then under paragraph (2) of section 210(b), as amended, he must publish notice thereof in the Federal Register and require the withholding of appraisement of any such merchandise entered on or after such date of publication. Paragraph (2) also retains the present provision in the Antidumping Act which authorizes the Secretary to order that such withholding be made effective with respect to merchandise entered on or after an earlier date, but in no case may the effective date of withholding be earlier than the 120th day before the question of dumping was raised by or presented to him.

Paragraph (3) of section 201(b) provides that if the Secretary's determination is negative, notice theerof must be published in the Federal Register, but the Secretary may within three months thereafter order the withholding of appraisement if he then has reason to believe or suspect that sales at less than fair value have occurred or are occurring. An order of withholding of appraisement in that case is treated in the same manner as is a withholding under paragraph (2) of section 201 (b). Section 201 (b) as amended by the bill also provides that the question of dumping is deemed to have been raised by or presented to the Secretary on the date on which a notice is published in the Federal Register that information relating to dumping has been received in accordance with regulations prescribed by him. Treasury regulations currently provide for publication of such a notice generally within 30 days after the receipt in satisfactory form of information relating to dumping.

Paragraph (3) of section 210 (b) also provides that if the Secretary determines that the circumstances are such that a determination cannot reasonably be made within nine months, he shall publish notice to that effect, and in such cases may take up to twelve months after the question of dumping was raised to reach a determination. These time limits are modeled after the limits recently set forth in the revised Antidumping Regulations issued by the Treasury Department. 2. Hearings

Subsection (b) incorporates a new provision in the Antidumping Act which requires the Secretary of the Treasury or the Tariff Commission to hold a hearing on the record prior to any determination under subsection 201 (a) of the Act. The subsection chances existing law in the following respects: 1) hearings conducted by the Treasury Department and the Tariff Commission will be required by the statute, in contrast to present procedures under which regulations issued by the Treasury Department and the Tariff Commission provide interested parties an opportunity to be heard only at the discretion of each agency; 2) a transcript will be required of each hearing. No other change is contemplated in the present hearing procedures conducted by the two agencies. The transcript of each hearing plus all papers filed in connection with the investigation will constitute the exclusive record for determination, and, with exception of material treated as confidential or in camera, shall be available to all persons. The hearings are exempted from the requirements of the Administrative Procedure Act. Paragraph (3) imposes a new requirement for the Secretary and the Tariff Commission to include in the record and publish in the Federal Register their determinations, whether affirmative or negative, together with a statement of the bases for their findings and conclusions on all material issues presented on the record.

3. Purchase Price

Subsection (c) makes three amendments to section 203 of the Antidumping Act, dealing with purchase price.

The first amendment deals with the treatment to be given export taxes in the computation of purchase price. Section 203 of the Antidumping Act, which defines purchase price and sets forth the adjustments to be made thereto, provides that any export tax imposed on the exported product must be added to the purchase price if it is not already included therein. Section 204, on the other hand, which defines exporter's sales price, provides that any export tax must be subtracted from exporter's sales price if it is included therein.

The "purchase price" treatment of an export tax is anomalous. An export tax increases the price of an exported product and, if not subtracted, would distort any dumping price comparison made between the export price and the home market price of a particular product. The distortion would artifically reduce or eliminate any dumping margins that might otherwise exist. The present treatment of export taxes under the exporter's sales price provision is proper and the proposed amendment would make the section on purchase price symmetrical with the section on exporter's sales price in this regard.

The second amendment deals with the treatment of certain types of tax rebates in computing purchase price. The amendment would conform the standard in the Antidumping Act to the standard followed in administering the countervailing duty law, thereby harmonizing tax treatment under the two statutes. With the amendment no adjustment to the advantage of the foreign exporter would be permitted for indirect tax rebates unless the direct relationship of the tax to the product being exported, or components thereof, could be demonstrated. The Treasury Department considers rebates or remissions of taxes not directly related to an exported product or its components as being bounties or grants within the meaning of the countervailing duty law. Under the Antidumping Act, Treasury is required in its calculation of purchase price to add back to the price at which merchandise is sold to the United States "the amount of any taxes imposed in the country of exportation upon the manufacturer, producer, or seller, in respect to the manufacture, production, or sale of the merchandise, which have been rebated, or which have not been collected, by reason of the exportation of the merchandise to the United States." (Emphasis added.) The "adding back" of such taxes under the Antidumping Act would have the effect of reducing or eliminating any dumping margins that may exist. The language of the Antidumping Act "in respect to the manufacture, production or sale of the merchandise" is somewhat broader than the standard applied to tax rebates under the countervailing duty law (directly related to the exported products or its components) and could result in inconsistency of treatment of tax rebates under the two laws. With this amendment, no dumping margins would be reduced or eliminated by virtue of the rebate of a tax not directly related to the exported product.

The third amendment would assure that imported merchandise benefitting from tax rebates which the Secretary has already determined to be a bounty or grant, and thus subject to countervailing duties would not be unfairly penalized by subjecting them to antidumping duties as well by reason of the same tax rebates.

4. Exporter's Sales Price

Subsection (c) also makes three amendments to section 204 of the Antidumping Act dealing with exporter's sales price.

The first amendment adds a fifth item to the list of those costs, expenses, or taxes which must be subtracted from the resale price in the United States to an unrelated purchaser in the computation of exporter's sales price. This amendment provides that whenever merchandise subject to an antidumping investigation or finding is imported by a person or corporation related to the exporter. i.e., an exporter's sales price situation, and the merchandise is changed by further process or manufacture so as to remove it from the class or kind of merchandise involved in the proceeding before it is sold to an unrelated purchaser, such merchandise will not escape the purview of the law, but appropriate adjustments for the value added will be made to arrive at an exporter's sales price. The amendment will codify existing Treasury Department regulations on the subject and eliminate any question concerning the scope or intent of the Act to reach such merchandise which has been further processed or manufactured.

The second and third amendments are identical to the amendments of section 203 of the Act concerning the treatment of certain tax rebates or remissions in the computation of purchase price, and would apply these same standards in the computation of exporter's sales price.

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