An Act 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
PL 87-794 (H.R.11970), enacted 10/11/1962

872 
PUBUC LAW 87.794-OCT. 11, 1%2 
[76 STAT. 
Public Law 87-794 
October 11. 1962 
[H. R. l l » 7 a j 
AN ACT 
Trade Expansion 
Act of 1962. 
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 
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). 
In 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) In 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) For 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) For 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. 
In 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) For 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) In 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. In 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) In 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) In 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. 
In 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 use 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 
duty or other import restriction on any article if the President deter-
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 
application of an interested party, or upon his own motion, the Direc-
tor of the Office of Emergency Planning (hereinafter in this section 
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 
shall, in the light of the requirements of national security and with-
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. In the administration of this section, 
the Director and the President shall further recognize the close rela-
tion of the economic welfare of the Nation to our national security, 
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). 
48 Stat. 943; 
Post, 
pp. 881-883. 
19 u s e 1351. 
Office of Emer-
gency Planning. 
Investigation by 
Director. 
Domestic pro-
duction for na-
tional defense. 
Foreign compe-
tition, impact on 
domestic indus-
tries. 
878 
PUBLIC LAW 87-794~OCT. 11, 1962 
[76 STAT. 
CHAPTER 5—ADMINISTRATIVE PROVISIONS 
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. It 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. In 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 
CHAPTER 6—GENERAL PROVISIONS 
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 
Act of 1962, any duty or other import restriction or duty-free treat-
ment proclaimed in carrying out any trade agreement under this 
title or section 350 of the Tariff Act of 1930 shall apply to products 
of all foreign countries, whether imported directly or indirectly. 
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-
ance of international cartels) or policies unjustifiably restricting 
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 
of trade agreement concessions to products of such country or 
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 
which receive benefits of trade agreement concessions made by the 
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 
Post, p. 
Ante, 
p. 
881. 
78. 
48 Stat. 943; 
Post, 
pp. 881-883. 
19 u s e 1351. 
Discriminatory 
acts. 
Suspension, etc., 
of benefits. 
Unreasonable 
import restric-
tions. 
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) In 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 
Repeal. 
69 Stat. 164, 165; 
72 Stat. 673. 
25 F.R. 4764, 
11119. 
48 Stat. 943; 
Ante, 
p. 881; 
Post, 
p. 883. 
19 u s e 1351. 
48 Stat. 944. 
Repeal. 
65 Stat. 73. 
19 u s e 1362-
1365. 
Ante, 
p. 876. 
Post, p. 883. 
Repeal. 
72 Stat. 678. 
19 u s e 1352a. 
Ante, 
p. 74. 
Ante, 
p. 75. 
Post, 
p. 883. 
Supra. 
Ante, 
p. 78. 
Ante, 
p. 73. 
temporarily suspended by Act of Congress or otherwise) existing 
oh July 1,1962, with respect to-such product." 
(b) Subsections (a) (5) and (e) of section 350 of the Tariff Act of 
1930 are repealed. 
(c) For purposes only of entering into trade agreements pursuant 
to the notices of intention to negotiate published in the Federal Eegis-
ter of May 28, 1960, and the Federal Register of November 23, 1960, 
the period during which the President is authorized to enter into 
foreign trade agreements under section 350 of the Tariff Act of 1930 
is hereby extended from the close of June 30, 1962, until the close of 
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 
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". 
(e) (1) Sections 5,6,7, and 8 (a) of the Trade Agreements Extension 
Act of 1951 are repealed. 
(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 
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 
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. 
(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 
Tariff Act of 1930, as amended", approved July 1, 1954, is repealed. 
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. 
(g)(1) Section 102(1) of the Tariff Classification Act of 1962 is 
amended by striking out "of schedules 1 to 7, inclusive,". 
(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 
Tariff Act of 1930, as amended, and the Trade Expansion Act of 1962 
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 
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 
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) Part 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. 
2
5
8
. 
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 
Tariff Commis-
sion. 
Petition by a 
firm. 
Petition by 
group of workers. 
(3) Whenever a petition is filed under this subsection, the Tariff 
Commission shall transmit a copy thereof to the Secretary of 
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) In 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) In the case of a petition by a firm for a determination of 
eligibility to apply for adjustment assistance under chapter 2, the 
Tariff Commission shall promptly make an investigation to determine 
whether, as a result in major part 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. In 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. 
(2) In the case of a petition by a group of workers for a deter-
.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) In 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) In 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 
results of each investigation under this section and include in each 
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 
Federal Register. 
(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 
Report to Presi-
dent. 
Publication in 
F. R. 
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 to 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) In 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. In 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) In 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; 
(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: 
"(b) NET 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) In 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. 
Infra. 
72 Stat. 1678. 
Ante, p. 64 8. 
890 
PUBLIC LAW 87-794-OCT. 11^ 1962 
[76 STAT. 
"(C) In 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. For 
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) In 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)(ii) 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". 
26 use 1481. 
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, 
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. 
In 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
/
V
W 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. 
In 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 
Redevelopment Act, is paid to an adversely affected worker for any 
week of unemployment with respect to which he would be entitled 
(determined without regard to subsection (c) or (e) or to any dis-
qualification under section 327) to a trade readjustment allowance 
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— 
Ante, 
p. 23. 
75 Stat. 47. 
42 u s e 2501 
note. 
Post, p. 895. 
26 u s e 3303. 
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) In 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 
"' 
'""'• 
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 Fund 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. 
For 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. 
68A Stat. 443. 
26 use 3304. 
42 use 1361-
1371; 45 use 367; 
42 u s e 1400/ 
note. 
(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 
section 3304 of the Internal Revenue Code of 1954. 
(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 
XV of the Social Security Act, the Railroad Unemployment In-
surance Act, and the Temporary Extended Unemployment Com-
pensation Act of 1961. 
(13) The term "week" means a week as defined in the applica-
ble State law. 
port to Congress. 
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 
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 July 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. 
For purposes of paragraph (1), the term "existing on July 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) In 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. 
3
5
2
. 
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) In 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) At 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 o
f 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 87-794-OCT. 11, 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) In 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) In 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) An 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. For 
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 
To amend section 30.") of the Communications Act of 1934, as amended. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 305 of 
the Communications Act of 1934, as amended, is further amended 
by addition of a new subsection as follows: 
"(d) The provisions of sections 301 and 303 of this Act notwith-
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." 
Approved October 11, 1962. 
October 11, 1962 
[H. R. 11732] 
Foreign govern-
ment radio sti*-
tions in D. C. 
48 Stat. 1083. 
47 u s e 305. 
60 Stat. 237,, 
S u s e 1001 note.