Uruguay Round Agreements Act
PL 103-465 (H.R.5110), enacted 12/08/1994

PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4809 
Public Law 103-465 
103d Congress 
An Act 
To approve and implement the trade agreements concluded in the Uruguay Round 
Dec. 8, 1994 
of multilateral trade negotiations. 
[H.R. 5110] 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
Uruguay Round 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the "Uruguay 
19 use 3501 
Round Agreements Act", 
"°^-
(b) TABLE OF CONTENTS.— 
Sec. 1. Short title and table of contents. 
Sec. 2. Definitions. 
TITLE I—APPROVAL OF, i\ND GENERAL PROVISIONS RELATING TO, THE 
URUGUAY ROUND AGREEMENTS 
Subtitle A—^Approval of Agreements and Related Provisions 
Sec. 101. Approval and entry into force of the Uruguay Round Agreements. 
Sec. 102. Relationship of the agreements to United States law and State law. 
Sec. 103. Implementing actions in anticipation of entry into force; regulations. 
Subtitle B—^Tariff Modifications 
Sec. 111. Tariff modifications. 
Sec. 112. Implementation of Schedule XX provisions on ship repairs. 
Sec. 113. Liquidation or reliquidation and refund of duty paid on certain entries. 
Sec. 114. Modifications to the HTS. 
Sec. 115. Consultation and layover requirements for, and effective date of, pro-
claimed actions. 
Sec. 116. Effective date. 
Subtitle C—Uruguay !Elound Implementation and Dispute Settlement 
Sec. 121. Definitions. 
Sec. 122. Implementation of Uruguay Round Agreements. 
Sec. 123. Dispute settlement panels and procedures. 
Sec. 124. Annual report on tlie WTO. 
Sec. 125. Review of participation in the WTO. 
Sec. 126. Increased transparency. 
Sec. 127. Access to the WTO dispute settlement process. 
Sec. 128. Advisory committet; participation. 
Sec. 129. Administrative action following WTO panel reports. 
Sec. 130. Effective date. 
Subtitle D—^Related Provisions 
Sec. 131. Working party on worker rights. 
Sec. 132. Implementation of :rules of origin work program. 
Sec. 133. Membership in WTO of boycotting countries. 
Sec. 134. Africa trade and development policy. 
Sec. 135. Objectives for extended negotiations. 
Sec. 136. Repeal of tax on imported perfimies; drawback of tax on distilled spirits 
used in perfume manufacture. 
Sec. 137. Certain nonrubber footwear. 
Sec. 138. Effective date. 
108 STAT. 4810 
PUBLIC LAW 103-465—DEC. 8, 1994 
TITLE n—ANTIDUMPING AND COUNTERVAILING DUTY PROVISIONS 
Sec 201. Reference. 
Siibtitle A—General ProvisionB 
Sec 211. Action witii respect to petitions. 
Sec 212. Petition and preliminary deteimination. 
Sec 213. De minimis dumpine; margin. 
Sec 214. Critical circumstances. 
Sec 215. Provisional measures. 
Sec 216. Conditions on acceptance of suspension agreements. 
Sec 217. Termination of investigation. 
Sec 218. Special rules for regional industries. 
Sec 219. Ijetermination of wei^^hted avera^ dumping maz^gin. 
Sec 220. Review of determinations. 
Sec 221. Review determinations. 
Sec 222. Definitions. 
Sec 223. Export price and constructed export price. 
Sec 224. Normal value. 
Sec 225. Currency conversion. 
Sec 226. Proprietary and nonproprietary information. 
Sec 227. Opportunity for comment by consumers and industrial users. 
Sec 228. Public notice and explanation of determinations. 
Sec 229. Sampling and averaging; determination of weighted average dumping 
margin. 
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Sec 230. Anticircumvention. 
Sec 231. Evidence. 
Sec 232. Antidimiping petitions by third ooimtries. 
Sec 233. Conforming amendments. 
Sec 234. Application to Canada and Mexico. 
Subtitle B—Subsidies Provisions 
PART 1—COUNTERVAILABLE SUBSIDIES 
Sec 251. Countervailable subsidy. 
PART 2—REPEAL OF SECTION 303 AND CONFORMING AMENDMENTS 
Sec 261. Repeal of section 303. 
Sec 262. Imposition of countervailing duties. 
Sec 263. De minimis countervailable subsidy. 
Sec 264. Determination of coimtervailable subsidy rate. 
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Sec 265. Assessment of countei-vailing duty. 
Sec 266. Nature of ooimtervailable subsidy. 
Sec. 267. Definition of developing and least-developed coimtry. 
Sec. 268. Upstream subsidies. 
Sec 269. Sampling and averaging; determination of countervailable subsidy rate. 
Sec. 270. Conforming amendments. 
PART 3—SECTION 303 INJURY INVESTIGATIONS 
Sec 271. Special rules for i^juiy investigations for certain section 303 countervail-
ing duty orders and investigations. 
PART 4—^ENFORCEMENT OF UNITED STATES RIGHTS UNDER THE SUBSIDIES 
AGREEMENT 
Sec 281. Subsidies enforcement. 
Sec 282. Review of subsidies agreement. 
Sec 283. Amendments to titie VII of the Tariff Act of 1930. 
Subtitle C—-Effective Date 
Sec. 291. Effective date. 
TITLE m--ADDITIONAL IMPLEMENTATION OF AGREEMENTS 
Subtitie A—Safeguards 
Sec. 301. Investigations, determinations, and reconamendations by International 
Trade Commission. 
Sec 302. Action by President after determination of import injiiry. 
Sec 303. Miscellaneous amendments. 
Sec 304. Effective date. 
Subtitle B—^Foreign Trade Barriers and Unfair Trade Practices 
Sec. 311. Identification of foreign anticompetitive practices. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4811 
See. 312. Consultation •mih committees. 
Sec 313. Identification of coxintries that deny protection of intellectual property 
lie^hts. 
Sec. 314. Amendments to title III of the Trade Act of 1974. 
Sec 315. Objectives in intellectual property. 
Sec 316. Effective date. 
Subtitle C—Unfair Practices in Import Trade 
Sec 321. Unfair practices in import trade. 
Sec 322. Effective date. 
Subtitle D—Textiles 
Sec 331. Textile product integration. 
Sec 332. Amendment to section 204 of the Agricultural Act of 1956. 
Sec 333. Textile traneahipmeuts. 
Sec 334. Rules of origin for textile and apparel products. 
Sec 335. Effective date. 
Subtitle E—Government Procurement 
Sec 341. Monitoring and enforcement of the agreement on government procure-
ment. 
Sec 342. Conforming amendments. 
Sec 343. Reciprocal competitive procurement practices. 
Sec 344. Effective date. 
Subtitie F—Technical Barriers to Trade 
Sec 351. Technical barriers to trade. 
Sec 352. Effective date. 
TITLE IV—AGRICULTURE-RELATED PROVISIONS 
Subtitie A—^Agriculture 
PART I—MARKET ACCESS 
Sec 401. Section 22 amendments. 
Sec. 402. Cheese and chocolate crumb imports. 
Sec 403. Meat Import Act 
Sec 404. Administration of tariff-rate quotas. 
Sec 405. Special agricultural safeguard authority. 
PART II—EXPORTS 
Sec 411. Export programs. 
Sec 412. Other conforming amendments. 
PART III—OTHER PROVISIONS 
Sec 421. Authority for certain actions under Article XXVIII. 
Sec. 422. Tobacco imiports. 
Sec. 423. Tobacco proclamation authority. 
Sec 424. Report to Congress on access to Canadian dairy and poultry markets. 
Sec. 425. Study of milk marketing order system. 
Sec 426. Additional program Jiunding. 
Subtitie B—Sanitary and Phytosanitary Measvires 
Sec. 431. Sanitary and phytosanitary measures. 
Sec 432. International standard-setting activities. 
Subtitie C—Standards 
Sec 441. Ihe Federal Seed Act. 
Subtitie D—General Effective Date 
Sec 451. General effective date. 
TITLE V—INTELLECTUAL PROPERTY 
Sec 501. Definition. 
Subtitie A—Copyright Provisions 
Sec. 511. Rental rights in computer programs. 
Sec. 512. Civil penalties for unauthorized fixation of and trafficking in sound re-
' cordings and music videos of live musical performances. 
108 STAT. 4812 
PUBLIC LAW 103-465—DEC. 8, 1994 
Sec. 513. Criminal penalties for unauthorized fixation of and trafficking in sound 
recordings and music videos or live musical performances. 
Sec. 514. Restored works. 
Subtitle B—Trademark Provisions 
Sec. 521. Definition of "abandoned". 
Sec. 522. Nonregistrability of misleading geographic indications for wines and 
spirits. 
Sec. 523. Effective date. 
Subtitle C—^Patent Provisions 
Sec. 531. Treatment of inventive activity. 
Sec. 532. Patent term and internal priority. 
Sec. 533. Patent rights. 
Sec. 534. Effective dates and application. 
TITLE VI—RELATED PROVISIONS 
Subtitle A—Elxpiring Provisions 
Sec. 601. Generalized System of Preferences. 
Sec. 602. U.S. insular possessions. 
Subtitle B—Certain Customs Provisions 
Sec. 611. Reimbursements from c\istoms user fee account. 
Sec. 612. Merchandise processing fees. 
Subtitle C—Conforming Amendments 
Sec. 621. Conforming amendments. 
TITLE VII—REVENUE PROVISIONS 
Sec. 700. Amendment of 1986 Code and table of contents. 
Subtitle A—^Withholding Tax Provisions 
Sec. 701. Withholding on distributions of Indian casino profits to tribal members. 
Sec. 702. Voluntary withholding on certain Federal payments and on xmemploy-
ment compensation. 
Subtitle B—Provisions Relating to Estimated Taxes and Payments and Deposits of 
Taxes 
Sec. 711. Treatment of subpart F and section 936 income of taxpayers using 
annualized method for estimated tax. 
Sec. 712. Time for payments and deposits of certain taxes. 
Sec. 713. Reduction in rate of interest paid on certain corporate overpayments. 
Subtitle C—^Earned Income Tax Credit 
Sec. 721. Extension of earned income tax credit to military personnel stationed out-
side the United States. 
Sec. 722. Certain nonresident aliens ineligible for earned income tax credit. 
Sec. 723. Income of prisoners disregardea in determining earned income tax credit. 
Subtitle D—Provisions Relating To Retirement Benefits 
Sec. 731. Treatment of excess pension assets used for retiree hecdth benefits. 
Sec. 732. Roxmding roles for cost-of-living adjustments. 
Sec. 733. Increase m inclusion of social security benefits paid to nonresidents. 
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Subtitle E—Other Provisions 
Sec. 741. Partnership distributions of marketable securities. 
Sec. 742. Taxpajrer identification numbers rec[uired at birth. 
Sec. 743. Extension of Internal Revenue Service user fees. 
Sec. 744. Modification of substantial understatement penalty for corporations par-
ticipating in tax shelters. 
Sec. 745. Modification of authority to set terms and conditions for savings bonds. 
Subtitle F—Pension Plan Funding and Premiums 
Sec. 750. Short title. 
PART I—PENSION PLAN FUNDING 
SUBPART A—AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986 
Sec. 751. Minimum funding requirements. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4813 
Sec. 752. Limitation on chang^e in current liability aasumptions. 
Sec. 753. Antidpation of bargained benefit increases. 
Sec 754. Modification of q\iarterly contribution requirement. 
Sec 755. Exceptions to excise tax on nondeductible contributions. 
SUBPART B—AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 
1974 
Sec 761. Minimum funding requirements. 
Sec 762. Limitation on chimges in current liability assumptions. 
Sec 763. Anticipation of bargained benefit increases. 
Sec 764. Modification of quarterly contribution requirement. 
SUBPART C^—OTHER FUNDING PROVISIONS 
Sec 766. Prohibition on benefit increases where plan sponsor is in bankruptcy. 
Sec 767. Single sum distributions. 
Sec 768. Adjustments to lien for missed minimuni funding contributions. 
Sec 769. Special funding rules for certain plans. 
PART II—AMENDMENTS RELATED TO TITLE IV OF THE EMPLOYEE RETIREMENT 
INCOME SECURITY ACT OF 1974 
Sec 771. Reportable events. 
Sec 772. Certain information required to be furnished to PBGC. 
Sec 773. Enforcement of minimum funding requirements. 
Sec 774. Computation of additional PBGCTpremium. 
Sec 775. Disclosure to participants. 
Sec 776. Missing partidpants. 
Sec 777. Modification of^maximum guarantee for disability benefits. 
Sec 778. Procedures to facilitate distribution of termination benefits. 
PART III—EFFECTIVE DATES 
Sec 781. Effective dates. 
TITLE VIII—PIONEER PREFERENCES 
Sec 801. Pioneer preferences. 
SEC. 2. DEFINITIONS. 
19 USC 3501. 
For purposes of this Act 
U) CJATT 1947; GATT 1994.— 
(A) GATT 1947.—The term "GATT 1947" means the 
General Agreement on Tariffs and Trade, dated October 
30, 1947, annexed to the Final Act Adopted at the Conclu-
sion of tiie Second Session of the Prepsiratory Conunittee 
of the United Nations Conference on Trade and Employ-
ment, as subsequently rectified, Eunended, or modified by 
the terms of legal instruments which have entered into 
force before the date of entry into force of the WTO 
(B) GATT 1994.—The term "GATT 1994" means the 
Greneral Agreement on Tariffs and Trade annexed to the 
WTO Agreement. 
(2) HTS.—The term "HTS" means the Harmonized Tariff 
Schedule of the United States. 
(3) INTERNATION^VL TRADE COMMISSION.—^The term "Inter-
national Trade Commission" meEins the United States Inter-
national Trade Commission. 
(4) MULTILATERAI. TRADE AGREEMENT.—The term "multQat> 
eral trade agreement^' means an agreement described in section 
101(d) of this Act (otlier than an agreement described in para-
graph (17) or (18) of such section). 
(5) SCHEDULE xx.—The term "Schedule XX" means Sched-
ule XX—^United States of America annexed to the Marrakesh 
Protocol to the GATT 1994. 
(6) TRADE REPRESENTATIVE.—^The term "Trade Represente-
tive" means the United States Trade Representetive. 
108 STAT. 4814 
PUBLIC LAW 103-465—DEC. 8, 1994 
(7) URUGUAY ROUND AGREEMENTS.—The term "Uruguay 
Round Agreements" means the agreements approved hy the 
Congress under section lOl(aXl). 
(8) WORLD TRADE ORGANIZATION AND WTO.—The terms 
"World Trade Organization" and "WTO" mean the oi^ganization 
established pursuant to the WTO Agreement. 
(9) WTO AGREEMENT.—The term "WTO Agreement^' means 
the Agreement Establishing the World Trade Organization 
entered into on April 15, 1994. 
(10) WTO MEMBER AND WTO MEMBER COUNTRY.—^The terms 
"WTO member^ and "WTO member country" mean a state, 
or separate customs territory (within the meaning of Article 
Xn of the WTO Agreement), with respect to which the United 
States appUes the WTO Agreement. 
TITLE I—APPROVAL OF, AND GENERAL 
PROVISIONS RELATING TO, THE URU-
GUAY ROUND AGREEMENTS 
Subtitle A—Approval of Agreements and 
Related Provisions 
19 u s e 3511. 
SEC. 101. APPROVAL AND ENTRY INTO FORCE OF THE URUGUAY 
ROUND AGREEMENTS. 
(a) APPROVAL OF AGREEMENTS AND STATEMENT OF ADMINISTRA-
TIVE ACTION.—^Pursuant to section 1103 of the Omnibus Trade 
and Competitiveness Act of 1988 (19 U.S.C. 2903) and section 
151 of the Trade Act of 1974 (19 U.S.C. 2191), the Congress 
approves— 
(1) the trade agreements described in siibsection (d) result-
ing from the Uruguay Round of multilateral trade negotiations 
under the auspices of the General Agreement on Tariffs and 
Trade, entered into on April 15, 1994, and submitted to the 
Congress on September 27,1994; and 
(2) the statement of administrative action proposed to 
implement the agreements that was submitted to tne Congress 
on September 27,1994. 
(b) ENTRY INTO FORCE.—^At such time as the President deter-
mines that a sufficient nimiber of foreign countries are accepting 
the obHgations of the Uruguay Round Agreements, in accordance 
with article XIV of the WTO Agreement to ensure the effective 
operation of, and adequate benefits for tne United States under, 
those Agreements, the President may accept the Uruguay Round 
Agreements and implement article VTII of the WTO Agreement. 
(c) AUTHORIZATION OF APPROPRIATIONS.—^There are authorized 
to be appropriated annually such sums as may be necessary for 
the payment by the United States of its share of the expenses 
of the WTO. 
(d) TRADE AGREEMENTS TO WHICH THIS ACT APPLIES.—Sub-
section (a) applies to the WTO Agreement and to the following 
agreements annexed to that Agreement: 
(1) The (General Agreement on Tariffs and Trade 1994. 
(2) The Agreement on Agriculture. 
wAe-rH-^-s"--* 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4815 
(3) The Agreement on the Application of Sanitary and 
' 
Phytosanitary Measures. 
(4) The Agreement on Textiles and Clothing. 
(5) The Agreement on Technical Barriers to Trade. 
(6) The Agreement on Trade-Related Investment Measures. 
(7) The Agreement on Implementation of Article VI of 
the General Agreement on Tariffs and Trade 1994. 
(8) The Agreement on Implementation of Article Vll of 
the General A^eement on Tariffs and Trade 1994. 
(9) The A^eement on Preshipment Inspection. 
(10) The Agreement on Rules of Origin. 
(11) The Agreement on Import Licensing Procedures. 
(12) The Agreement on Subsidies and Coxintervailing 
Measures. 
(13) The Agreement on Safeguards. 
(14) The General Agreement on Trade in Services. 
(15) The Agreement on Trade-Related Aspects of Intellec-
tual Property Rights. 
(16) The Understanding on Rules and Procedures Ciovem-
ing the Settlement of Disputes. 
(17) The Agreement on (jovemment Procurement. 
(18) The International Bovine Meat Agreement 
SEC. 102. RELATIONSHIP OF THE AGREEMENTS TO UNITED STATES 
19 USC 3512. 
LAW AND STATE LAW. 
(a) REiATiONSfflp OF AGREEMENTS TO UNITED STATES L A W . — 
(1) UNITED STATISS LAW TO PREVAIL IN CONFLICT.—No provi-
sion of any of the Uruguay Round Agreements, nor the applica-
tion of any such provision to any person or circumstance, that 
is inconsistent with any law of tne United States shall have 
effect 
(2) 
CONSTRUCTION.—Nothing in this Act shall be 
construed— 
(A) to amend or modify any law of the United States, 
including any law relating to— 
(i) the protection of human, animal, or plant life 
or health, 
(ii) the protection of the environment, or 
(iii) worker safety, or 
(B) to limit any authority conferred under any law 
of the United States, including section 301 of the Trade 
Act of 1974, 
unless specifically provided for in this Act 
(b) RELATIONSHIP OF AGREEMENTS TO STATE LAW.— 
(1) FEDERAL-STA':rE CONSULTATION.-^ 
(A) IN GENERAL.—Upon the enactment of this Act, the President. 
President shall, through the intergovernmental policy 
advisory commillees on trade established under section 
306(cX2XA) of tlie Trade and Tariff" Act of 1984 (19 U.S.C. 
2114c(2)(A)), consult with the States for the purpose of 
achieving conformity of State laws and practices with the 
Uruguay Round .Agreements. 
(B) 
FEDER^y:^STATE 
CONSULTATION 
PROCESS.—The 
Trade Representative shall establish within the Office of 
the United States Trade Representative a FedeiiEd-State 
consultation process for addressing issues relating to the 
Uruguay Round Agreements that directiy relate to, or will 
108 STAT. 4816 
PUBLIC LAW 103-465—DEC. 8, 1994 
potentially have a direct effect on, the States. The Federal-
State consultation process shall include procedures under 
which— 
(i) the States will be informed on a continuing 
basis of matters under the Uruguay Roimd Agreements 
that directiy relate to, or will potentially have a direct 
impact on, me States; 
(ii) the States will be provided an opportunity to 
submit, on a continuing basis, to the Trade Representa-
tive information and advice with respect to matters 
referred to in clause (i); and 
(iii) the Trade Representative will take into 
account the information and advice received fix)m the 
States under clause (ii) when formulating United 
States positions regarding matters referred to in clause 
(i). 
The Federal Advisory Committee Act (5 U.S.C. App.) shall 
not apply to the Federal-State consultation process estab-
lished Dy this paragraph. 
(C) 
FEDERAL-STATE 
COOPERATION 
IN 
WTO 
DISPUTE 
SETTLEMENT.— 
(i) When a WTO member requests consultations 
with the United States under Article 4 of the Under-
standing on Rules and Procediu^s Groveming the 
Settiement of Disputes referred to in section 10l(dXl6) 
(hereafter in this subsection referred to as the "Dispute 
Settiement Understanding^') concerning whether the 
law of a State is inconsistent with me obligations 
undertaken by the United States in any of the Uruguay 
Round Agreements, the Trade Representative shall 
notify the Governor of the State or the Governor's 
designee, and the chief legal officer of the jurisdiction 
whose law is the subject of the consultations, as soon 
as possible after tiie request is received, but in no 
event later than 7 days thereafter. 
(ii) Not later than 30 days after receiving such 
a request for consultations, the Trade Representative 
shall consult with representatives of the State con-
cerned regarding the matter. If the consultations 
involve the laws of a large number of States, the Trade 
Representative may consult with an appropriate group 
of representatives of the States concerned, as deter-
minea by those States. 
(iii) The Trade Representative shall make every 
effort to ensure that the State concerned is involved 
in the development of the position of the United States 
at each stage of the consultations and each subsequent 
stage of dispute settiement proceedings regarding the 
matter. In particular, the Trade Representative shall— 
(I) notify the State concerned not later than 
7 days after a WTO member requests the establish-
ment oif a dispute settiement panel or gives notice 
of the WTO member's decision to appeal a report 
by a dispute settiement panel regarding the mat-
ter, and 
(II) provide the State concerned with the 
opportunity to advise and assist the Trade Rep-
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4817 
resentative in the preparation of factual informa-
tion and argumentation for any written or oral 
presentations by the United States in consultations 
or in proceedings of a panel or the Appellate Body 
regarding the matter. 
(iv) If a dispute settlement panel or the Appellate 
Body finds that the law of a State is inconsistent 
with any of the Uruguay Round Agreements, the Trade 
Representative shall consult with the State concerned 
in Em. effort to develop a mutually agreeable response 
to the report of the panel or the Appellate Body and 
shall make every effort to ensure that the State con-
cerned is involved in the development of the United 
States position regarding the response. 
(D) NOTICE TO STATES REGARDING CONSULTATIONS ON 
FOREIGN 
SUBCENTRAL 
GOVERNMENT 
LAWS.— 
(i) Subject to clause (ii), the Trade Representative 
shall, at least 30 days before making a request for 
consultations under Article 4 of the Dispute Settlement 
Understanding regarding a snbcentral government 
measure of another WTO member, notify, and solicit 
the views of, appropriate representatives of each State 
regarding the matter. 
(ii) In ejogent circumstcmces clause (i) shall not 
apply, in which case the Trade Representative shall 
noti^ the appropriate representatives of each State 
not later than 3 days after making the request for 
consultations referred to in clause (i). 
(2) LEGAL CHALLENGE.— 
(A) IN GENERAL.—^No State law, or the application of 
such a State law, may be declared invalid as to any person 
or circumstance on the ground that the provision or applica-
tion is inconsistent witn any of the Uruguay Round Agree-
ments, except in an action brought by the United States 
for the purpose of declaring such law or application invalid. 
(B) PROCEDURES GOVERNING ACTION.—In any action 
described in subparagraph (A) that is brought by the United 
States against a State or any subdivision thereof-
(i) a report of a dispute settlement panel or the 
Appellate Body convened under the Dispute Settlement 
Understanding regarding the State law, or the law 
of any political subdivision thereof, shall not be consid-
ered £is binding or otherwise accorded deference; 
(ii) the United States shall have the burden of 
proving that the law that is the subject of the action, 
or the application of that law, is inconsistent with 
the agreement in question; 
(iii) any State whose interests may be impaired 
or impeded in the action shall have the unconditional 
right to intervene in the action as a party, Eind the 
United States shall be entitied to amend its complaint 
to include a claim or cross-claim concerning the law 
of a State that so intervenes; and 
(iv) any State law that is declared invalid shall 
not be deemed to have been invalid in its application 
during any period before the courtfs judgment becomes 
108 STAT. 4818 
PUBLIC LAW 103-465—DEC. 8, 1994 
final and all timely appeals, including discretionary 
review, of such judgment are exhausted. 
(C) REPORTS TO CONGRESSIONAL COMMITTEES.—^At least 
30 days before the United States brings an action described 
in subparagraph (A), the TVade Representative shall pro-
vide a report to the Committee on Ways and Means of 
the House of Representatives and the Committee on 
Finance of the Senate— 
(i) describing the proposed action; 
(ii) describing eiSbrts by the Trade Representative 
to resolve the matter with the State concerned by 
other means; and 
(iii) if the State law was the subject of consulta-
tions under the Dispute Settlement Understanding, 
certifying that the Trade Representative has substan-
tialty compHed with the requirements of paragraph 
(IXC) in connection with the matter. 
Following the submission of the report, £ind before the action 
is brought, the Trade Representative shall consult with the 
committees referred to in the preceding sentence concerning 
the matter. 
(3) DEFINITION OF STATE LAW.—^For purposes of this 
subsection— 
(A) the term "State law" includes— 
(i) any law of a political subdivision of a State; 
and 
(ii) any State law regulating or taxing the business 
of insurance; and 
(B) the terms "dispute settlement panel" and "Appel-
late Body" have the meanings given those terms in section 
121. 
(c) EFFECT OF AGREEMENT WITH RESPECT TO PRIVATE REM-
EDIES.— 
(1) LIMITATIONS.—No person other than the 
United 
States— 
(A) shall have any cause of action or defense under 
£Uiy of the Uruguay Roimd Agreements or by virtue of 
congressional approval of such an agreement, or 
(B) may challenge, in any action brought under any 
provision of law, any action or inaction by any department, 
agency, or other instrumentality of the United States, any 
State, or any poUtical subdivision of a State on the ground 
that such action or inaction is inconsistent with such 
agreement 
(2) INTENT OF CONGRESS.—^It is the intention of the Con-
gress through paragraph (1) to occupy the field with respect 
to any cause of action or defense under or in connection with 
£iny of the Uruguay Round Agreements, including by precluding 
any person other tlmn the United States fi*om bringing any 
action against Einy State or pohtical subdivision thereof or 
raising any defense to the appUcation of State law under or 
in connection with any of the Uruguay Round Agreements— 
(A) on the basis of a judgment obtained by the United 
States in an action brought under any such agreement; 
or 
(B) on £my other basis. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4819 
(d) STATEMENT OF .ADMINISTRATIVE ACTION.—The statement 
of administrative action approved by tbe Congress under section 
101(a) shall be regarded as an authoritative expression by the 
United States concerning the interpretation and appHcation of the 
Uruguay Round Agreements and this Act in anv judicial proceeding 
in which a question arises concerning such interpretation or 
application. 
SEC. 103. IMPLEMENTING ACTIONS IN ANTICIPATION OF ENTRY INTO 
19 USC 3513. 
FORCE; REGULATIONS. 
(a) IMPLEMENTING ACTIONS.—-After the date of the enactment 
of this Act— 
(1) the President may proclaim such actions, and 
(2) other appropriate ofl&cers of the United States Govern-
ment may issue such regulations, 
as may be necessary to ensiu^ that any provision of this Act, 
or Eimendment made by this Act, that takes effect on the date 
any of the Uruguay Round Agreements enters into force with 
respect to the United States is appropriately implemented on such 
date. Such proclamation or regulation may not have an effective 
date earUer than the date of entry into force with respect to the 
United States of the agreement to which the proclamation or regula-
tion relates. 
(b) REGULATIONS.—^Any interim regulation necessary or appro-
priate to carry out any action proposed in the statement of adminis-
trative action approved under section 101(a) to implement an 
agreement described in section 101(d) (7), (12), or (13) shall be 
issued not later than 1 year after the date on which the agreement 
enters into force with respect to the United States. 
Subtitle B—Tariff Modifications 
SEC. IIL TARIFF MODIFICATIONS. 
19 USC 3521. 
(a) IN GENERAL.—In addition to the authority provided by President, 
section 1102 of the Omnibus Trade and Competitiveness Act of 
1988 (19 U.S.C. 2902), the President shall have the authority to 
proclaim— 
(1) such other modification of any duty, 
(2) such other staged rate reduction, or 
(3) such additional duties, 
as the President determines to be necessary or appropriate to 
carry out Schedule XX. 
(b) OTHER TARIFF MODIFICATIONS.—Subject to the consultation 
£ind layover requirements of section 115, the President may 
proclaim— 
(1) the modification of any duty or staged rate reduction 
of any duty set forth in Schedule XX if— 
(A) the United States agrees to such modification or 
staged rate reduction in a multilateral negotiation iinder 
the auspices of the WTO, and 
(B) such modification or staged rate reduction appUes 
to the rate of duty on an article contained in a tariff 
category that was the subject of reciprocal duty elimination 
or harmonization negotiations during the Uruguay Round 
of multilateral trade negotiations, and 
108 STAT. 4820 
PUBLIC LAW 103-465—DEC. 8, 1994 
President. 
Federal 
Register, 
publication. 
President. 
(2) such modifications as are necessary to correct technical 
errors in Schedule XX or to make other rectifications to the 
Schedule. 
(c) AUTHORITY TO INCREASE DUTIES ON ARTICLES FROM CER-
TAIN COUNTRIES.— 
(1) IN GENERAL.— 
(A) DETERMINATION WITH RESPECT TO CERTAIN COUN-
TRIES.—Notwithstanding section 251 of the Trade Expan-
sion Act of 1962 (19 U.S.C. 1881), after the entry into 
force of the WTO Agreement with respect to the United 
States, if the President— 
(i) determines that a foreign country (other than 
a foreign country that is a WTO mecober country) 
is not according adequate trade benefits to the United 
States, 
including 
substantially 
equal 
competitive 
opportunities for the commerce of the United States, 
and 
(ii) consults with the Committee on Ways and 
Means of the House of Representatives and the 
Committee on Finance of the Senate, 
the President may proclaim an increase in the rate of 
duty with respect to any article of such country in accord-
ance with subparagraph (B). 
(B) RATE OF DUTY DESCRIBED.—The President may pro-
claim a rate of duty on any article of a country identified 
under subparagrapn (A) that is equal to the greater of— 
(i) the rate of duty set forth for sucn article in 
the base rate of dutj^ column of Schedule XX, or 
(ii) the rate of duty set forth for such article in 
the bound rate of duty column of Schedule XX. 
(2) TERMINATION OF INCREASED DUTIES.—-The President 
shall terminate any increase in the rate of duty proclaimed 
under this subsection by a proclamation which shall be effective 
on the earlier of— 
(A) the date set out in such proclamation of termi-
nation, or 
(B) the date the WTO Agreement enters into force 
with respect to the foreign country with respect to which 
the determination under paragraph (1) was made. 
(3) PUBLICATION OF DETERMINATION AND TERMINATION.— 
The President shall pubHsh in the Federal Register notice 
of a determination maae under paragraph (1) and a termination 
occurring by resison of paragrapn (2). 
(d) ADJUSTMENTS TO CERTAIN COLUMN 2 RATES OF DUTY.— 
At such time as the President proclaims any modification to the 
HTS to implement the provisions of Schediue XX, the President 
shall also proclaim the rate of duty set forth in Column B as 
the column 2 rate of duty for the subheading of the HTS that 
corresponds to the subheading in Schedule XX listed in Column 
A. 
Column A 
Column B 
Schediile XX subheading;: 
Rate of duty for column 2 of the 
HTS: 
020L10.50 
3L1% 
020L20.80 
31.1% 
0201.30.80 
3L1% 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4821 
0202.10.50 
3L1% 
0202.20.80 
3L1% 
0202.30.80 
3L1% 
040L30.25 
90.8(!/liter 
040L30.75 
$L936/kg 
0402.10.50 
$L0ia/kg 
-
0402.21.25 
$LOia/kg 
0402.21.50 
$L285/kg 
0402.21.90 
$L831/kg 
0402.29.50 
$L299/kg + 17.6% 
0402.91.60 
36.8(Z/kg 
0402.99.50 
68.40/kg 
0402.99.90 
64.5cykg + 17.5% 
0403.10.50 
$L217/kg + 20% 
0403.90.16 
90.8«!/Uter 
0403.90.45 
$1.03/kg 
0403.90.55 
$L285/kg 
0403.90.65 
$L83Lltg 
0403.90.78 
$ L 9 3 6 ^ 
0403.90.95 
$L217/kg + 20% 
0404.10.11 
20% 
0404.10.15 
$L217/kg + 10% 
0404.10.90 
$1.03/kg 
0404.90.30 
25% 
0404.90.50 
$L399/kg + 10% 
0405.00.40 
$L813/ke 
0405.00.90 
$2.194/kg + 10% 
0406.10.08 
$1.775/kg 
0406.10.18 
$2.67/kg 
0406.10.28 
$1.443/kg 
0406.10.38 
$1.241/kg 
0406.10.48 
$2.121/kg 
0406.10.58 
$2.525/kg 
0406.10.68 
$1.631/kg 
0406.10.78 
$1.328/kg 
0406.10.88 
$1.775/kg 
0406.20.28 
$2.67/kg 
0406.20.33 
$1.443/kg 
0406.20.39 
$1.241/kB 
0406.20.48 
$2.121/kg 
0406.20.53 
$2.625/ke 
0406.20.63 
$2.67/kg 
0406.20.67 
;.. $1.443/kg 
0406.20.71 
$1.241/kg 
0406.20.75 
$ 2 , 1 2 1 ^ 
0406.20.79 
$2.525/kg 
0406.20.83 
$1.631/kg 
0406.20.87 
$1.328/kg 
0406.20.91 
$1.775/kg 
0406.30.18 
$2.67/kg 
0406.30.28 
$1.443/kg 
0406.30.38 
$1.241/kg 
0406.30.48 
$2.121/kg 
0406.30.53 
$1.631/kg 
0406.30.63 
$2.67/kg 
0406.30.67 
$1.443/kg 
0406.30.71 
$1.241/kg 
0406.30.75 
$2.121/kg 
108 STAT. 4822 
PUBLIC LAW 103-465—DEC. 8, 1994 
0406.30.79 
$2.525/kg 
0406.30.83 
$L631/kg 
0406.30.87 
$L32a/kg 
0406.30.91 
$L775/kg 
0406.40.70 
$2.67/kg 
0406.90.12 
$L443/kg 
0406.90.18 
$2.121/kg 
0406.90.33 
$2.525/kg 
0406.90.38 
$2.525/kg 
0406.90.43 
$2.525/kg 
0406.90.48 
$2.20a^ 
0406.90.64 
$L24iykg 
0406.90.68 
$2.525/ke 
0406.90.74 
$2.67/kg 
0406.90.78 
$L443/kg 
0406.90.84 
$1.24iykg 
0406.90.88 
$2.1211cg 
0406.90.92 
$L631/kg 
0406.90.94 
$L328/kg 
0406.90.97 
$L775/kg 
1202.10.80 
192.7% 
1202.20.80 
155% 
1517.90.60 
40.2(S/kg 
1701.11.50 
39.85«/kg 
1701.12.10 
6.68170<2/kg ICBB 0.0622005ci/kB for 
each degree under 100 degrees 
(and fractionB of a degree in pro-
portion) 
but 
not 
leeo 
than 
5.031562(«/kg 
170L12.50 
42.05<i/kg 
1701.91.10 
6.58170<«/kg leae 0.0622005<j/kg for 
each degree under 100 degrees 
(and fractions of a degree in pro-
portion) 
but 
not 
less 
than 
5.031562tf/kg 
1701.91.30 
42.05<2/kg 
1701.91.48 
39.9<«/kg + 6% 
1701.91.58 
39.9<«/kg + 6% 
1701.99.10 
6.5817O0acg less 0.0622005c!/kg for 
each degree under 100 degrees 
(and fractions of a degree in pro-
portion) 
but 
not 
less 
than 
5.031562c!/kg 
1701.99.50 
42.05(«/kg 
1702.20.28 
19.9<i/kg of total sugars + 6% 
1702.30.28 
19.9<Z/kg of total sugars + 6% 
1702.40.28 
39.9<2/kg of total sugars + 6% 
1702.60.28 
39.9(£/kg of total sugars + 6% 
1702.90.10 
6.58170<!!/kg of total sugars 
1702.90.20 
42.O50Ttg 
1702.90.58 
39.9;j/kg of total stigars + 6% 
1702.90.68 
39.9c!/kg + 6% 
1704.90.58 
47.4<i/kg + 12.2% 
1704.90.68 
47.4«!/kg + 12.2% 
1704.90.78 
47.40/kg + 12.2% 
1806.10.15 
25.5c!/kg 
1806.10.28 
39.5«/kg 
1806.10.38 
39.5«!/kg 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4823 
1806.10.55 
39.50ltg 
1806.10.75 
39.5<J/kg 
1806.20^6 
43.6(t/ke + 5% 
1806.20.28 
62.1(t/kg + 5% 
1806.20.36 
43.8c!/kg + 5% 
1806.20.38 
62.10/kg + 5% 
1806.20.73 
35.9<J/kg + 10% 
1806.20.77 
35.9ci/kB + 10% 
1806.20.82 
43.80l£g + 10% 
1806.20.83 
62.1<S/kg + 10% 
1806.20.87 
43.8(J/kg + 10% 
1806.20.89 
62.1c!/kg + 10% 
1806.20.92 
43.8(i/kg + 10% 
1806.20.93 
62.1<«/kg + 109^ 
1806.20.96 
43.8<J/kB + 10% 
1806.20.97 
62.1<2/kg + 10% 
1806.32.06 
43.8(2/kg + 5% 
1806.32.08 
62.1<!/kg + 5% 
1806.32.16 
43.8<«/kg + 5% 
1806.32.18 
62.1«/kg + 5% 
1806.32.70 
43.8<«/kg + 7% 
1806.32.80 
62.1<!/kg + 7% 
1806.90.08 
43.8<2/kg + 7% 
1806.90.10 
62.1<J/kg + 7% 
1806.90.18 
43.80'kg + 7% 
1806.90^0 
62.1<J/kg + 7% 
1806.90.28 
43.8<S/kg + 7% 
1806.90.30 
62.1<«/kg + 7% 
1806.90.38 
43.8<J/kg + 7% 
1806.90.40 
62.1c!/kg + 7% 
1806.90.48 
43.8<!/kg + 7% 
1806.90.50 
62.l0Tcg + 7% 
1806.90.58 
43.8<J/kg + 7% 
1806.90.60 
62.1<!/kg + 7% 
1901.10.30 
$1.217/kg + 17.5% 
190L 10.40 
$1.217/kg + 17.5% 
1901.10.75 
$1.217/kg+ 17.5% 
1901.10.85 
$1.217/kg + 17.5% 
1901.20.16 
49.8c:/kg + 10% 
1901.20.25 
49.80/kg + 10% 
1901.20.35 
49.8c!/kg + 10% 
1901.20.50 
49.8(2/kg + 10% 
1901.20.60 
49.8c!/kg + 10% 
1901.20.70 
49.8tf/kg + 10% 
1901.90.36 
$1.328/kg 
1901.90.42 
25% 
1901.90.44 
$1.217/kg + 16% 
1901.90.46 
25% 
190L90.48 
$L217/kB + 16% 
1901.90.54 
27.90TtB + 10% 
1901.90.58 
27.9«!/kB + 10% 
2008.11.15 
155% 
2008.11.35 
155% 
2008.11.60 
155% 
2101.10.38 
35.9(£/kg + 10% 
2101.10.48 
35.9<J/kg + 10% 
2101.10.58 
35.9<S/kg + 10% 
2101.20.38 
35.9<f/ke + 10% 
108 STAT. 4824 
PUBLIC LAW 103-465—DEC. 8, 1994 
210L20.48 
35.9«;/kg + 10% 
210L20.58 
35.9(i/kg + 10% 
2103.90.78 
35.9ci/kg + 7.5% 
2105.00.20 
59c/kg + 20% 
2105.00.40 
59«J/kg + 20% 
2106.90.02 
$1.014/kg 
2106.90.04 
$2.348/kg 
2106.90.08 
$2.348^g 
2106.90.11 
6.58170(j/kB of total sugars 
2106.90.12 
42.05<2/kg 
2106.90.34 
82.8<2/kg + 10% 
2106.90.38 
82.8<2/kg + 10% 
2106.90.44 
82.8«!/kg + 10% 
2106.90.48, 
82.80/kg + 10% 
2106.90.57 
33.90Ttg + 10% 
2106.90.67 
33.9<2/kg + 10% 
2106.90.77 
33.9;!/kg + 10% 
2106.90.87 
33.9<S/kg + 10% 
2202.90.28 
27.6<i/liter + 17.5% 
2309.90.28 
94.6«ykg + 7.5% 
2309.90.48 
94.6<«/kg + 7.5% 
240L10.70 
85«!/kg 
240L10.90 
85<!/kg 
2401.20.30 
$1.21/kg 
240L20.45 
$1.15/kg 
2401.20.55 
$1.15/kg 
2801.30.20 
37% 
2805.30.00 
31.3% 
2805.40.00 
5.7% 
2811.19.10 
4.9% 
2818.10.20 
4.1% 
2822.00.00 
1.7% 
2827.39.20 
31.9% 
2833.11.50 
3.6% 
2833.27.00 
4.2% 
2836.40.20 
4.8% 
2836.60.00 
8.4% 
2837.20.10 
5.1% 
2840.11.00 
1.2% 
2840.19.00 
0.4% 
2849.20.20 
1.6% 
2903.15.00 
88% 
2903.16.00 
33.3% 
2903.30.05 
46.3% 
2906.11.00 
6.2% 
2907.12.00 
48.3% 
2909.11.00 
4% 
2912.11.00 
12.1% 
2916.15.10 
35.2% 
2916.19.30 
24.4% 
2923.20.20 
33.4% 
3213.90.00 
48.6% 
3307.10.20 
81.7% 
3307.49.00 
73.2% 
3403.11.20 
0.4% 
3403.19.10 
0.4% 
3506.10.10 
30.4% 
3603.00.30 
8.3% 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4825 
3603.00.90 
0.3% 
3604.10.00 
12.5% 
3606.90.30 
56.7% 
3706.10.30 
7% 
3807.00.00 
0.2% 
3823.90.33 
26.3% 
3904.61.00 
34.1% 
3916.90.10 
40.6% 
3920.51.50 
48.2% 
3920.59.80 
5L7% 
3926.90.65 
8.4% 
5201.00.18 
36.9<i/kg 
5201.00.28 
36.9«!/kg 
, 
5201.00.38 
36.9(«/kg 
5201.00.80 
36.9it/ks 
5202.99.30 
9.2c!/kg 
5203.00.30 
36.9c!/kg 
(e) AUTHORITY TO CONSOUDATE SUBHEADINGS AND MODIFY 
COLUMN 2 RATES OF DUTY FOR TARIFF SIMPLIFICATION PURPOSES.— 
(1) IN GENERAL.—^^^^enever the HTS column 1 general 
rates of duty for 2 or more 8-digit subheadings are at the 
same level and such subheadings are subordinate to a provision 
required by the Int<}mational Convention on the Harmonized 
Commodity Description and Coding System, the President may 
proclaim, subject to the consultation and layover requirements 
of section 115, that the goods described in such siibheadings 
be provided for in a single 8-digit subheading of the HTS, 
and that— 
(A) the HTS column 1 general rate of duty for such 
single subheading be the column 1 general rate of duty 
common to all such subheadings, and 
(B) the HTS column 2 rate of duty for such single 
subheading be the highest column 2 rate of duty for such 
subheadings that is in effect on the day before the effective 
date of sucn proclamation. 
(2) SAME LEVEL OF DUTY.—^The provisions of this subsection 
apply to subheadings described in paragraph (1) that have 
the same column 1 general rate of duty— 
(A) on the date of the enactment of this Act, or 
(B) after such date of enactment as a result of a staged 
reduction in such column 1 rates of duty. 
SEC. 112. IMPLEMENTATION OF SCHEDULE XX PROVISIONS ON SHIP 
REPAIRS. 
(a) IN GENERAL.—Section 484E0b) of the Customs and Trade 
Act of 1990 (19 U.S.C. 1466 note; 104 Stat 710) is amended— 
(1) by striking "and" at the end of paragraph (1); 
(2) b)^ striking the period at the end of paragraph (2) 
and inserting *
*
, and"; and 
(3) by adding at the end the following new paragraph: 
"(3) any entry made pursuant to section 466(h) (1) or (2) 
of the Tariff Act of 1930 (19 U.S.C. 1466(h) (1) or (2)), on 
or after the date of the entry into force of the WTO Agreement 
with respect to the United States.". 
(b) EXEMPTION FOR CERTAIN SPARE PARTS.—Section 466(h) of 
the Tariff Act of 1930 (19 U.S.C. 1466(h)) is amended— 
(1) by striking "or^ at the end of paragraph (1); 
79-194 0—95—9 : QL 3 Part 6 
108 STAT. 4826 
PUBLIC LAW 103-465—DEC. 8, 1994 
(2) by striking the period at the end of paragraph (2) 
and inserting ", or^; and 
(3) by adding at the end the following new paragraph: 
"(3) the cost of spare psirts necessarily installed before 
the first entry into the United States, but only if duty is 
paid under appropriate commodity classifications of the Har-
monized Tariff Scnedule of the United States upon first entry 
into the United States of each such spare part purchased in, 
or imported from, a foreign country.". 
19 use 3522. 
SEC. 113. LIQUIDATION OR RELIQUIDATION AND REFUND OF DUTY 
PAID ON CERTAIN ENTRIES. 
(a) LIQUIDATION OR RELIQUIDATION.—^Notwithstanding section 
514 of the Tariff Act of 1930 (19 U.S.C. 1514) or any other provision 
of law, and subject to subsection (b), the Secretary of the Treasiiry 
shall Hquidate or reUquidate the entries Hsted or otherwise 
described in subsection (c) and refiind any duty or excess duty 
that was paid, as provided in subsection (c). 
(b) REQUESTS.—Liquidation or reUquidation may be made under 
subsection (a) with respect to an entry only if a request therefor 
is filed with the Customs Service, within 180 days after the date 
on which the WTO Agreement enters into force with respect to 
the United States, that contains sufficient information to enable 
the Customs Service— 
(1) to locate the entry; or 
(2) to reconstruct the entry if it cannot be located. 
(c) ENTRIES.—The entries referred to in subsection (a) are as 
follows: 
(1) AGGLOMERATED STONE TILES.—^Any goods— 
(A) for which the importer claimed or would have 
claimed entry under subheading 6810.19.12 of the HTS 
on or after October 1, 1990, and before the effective date 
of a proclamation issued by the President under section 
103(a) of this Act with respect to items imder such sub-
heading in order to carry out Schedule XX, or 
(B) entered on or after January 1, 1989, and before 
October 1, 1990, for which entry would have been claimed 
under subheading 6810.19.12 of the HTS on or after Octo-
ber 1, 1990, 
shall be liquidated or reUquidated as if the wording of that 
subheading were "Of stone agglomerated with binders other 
than cement", and the Secretary of the Treasury shall reftind 
any excess duties paid with respect to such entries. 
(2) CLOMIPHENE CITRATE.— 
(A) Any entry, or withdrawal fix»m warehouse for 
consumption, of goods described in heading 9902.29.95 of 
the HTS (relating to clomiphene citrate) which was made 
after December 31, 1988, and before January 1, 1993, and 
with respect to which there would have been no duty 
if the reference to subheading "2922.19.15" in such heading 
were a reference to subheading "2922.19.15 or any sub-
heading of chapter 30" at the time of such entry or with-
drawal, shall be Uquidated or reUquidated as fi*ee of duty. 
(B) The Secretary of the Treasury shall refiind any 
duties paid with respect to entries described in subpara-
graph (A). 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4827 
SEC. 114. MODIFICATIONS TO THE HTS. 
(a) WOOL.— 
(1) AMENDMENTS.—Chapter 51 of the HTS is amended— 
(A) by striidng subheading 5101.21.60 and inserting 
the following new superior text and subheadings, with the 
superior text having the sEime degree of indentation as 
the artide description in subheading 5101.11.60: 
6101^1.65 
5101^1.70 
Othen 
Unimproved 
wool; 
other wool!, not finer 
than 468 
Other 
Free 
7.7«/ 
kg*6.25% 
Fre«(MX) 
0.8</kg+0.6% 
(IL) 3</ 
kg+2.5% (CA) 
81.6t/ 
kg-f20% 
81.6*/ 
kg*20% 
(B) by striking subheading 5101.29.60 and inserting 
the following new superior text and subheadings, with the 
superior tesct having the same degree of indentation as 
the article description in subheading 5102.10.20: 
610129.65 
6101J29.70 
Othen 
Unimproved 
wool; 
other 
wool, not 
finer than 46a 
Other 
Free 
7.7*/ 
kg-t-6.25% 
0.8f/kg-f0.6% 
(IL) St/ 
kg+2.5% (CA) 
6.1(/kg+6% 
(MX) 
81.6*/ 
kg-t-20% 
81.6t/ 
kg-t-20% 
and 
(C) by striking subheading 5101.30.60 and inserting 
the following new superior text and subheadings, with the 
superior text having the same degree of indentation as 
the 
superior text immediately preceding 
subheading 
5102.10.20: 
5101.30.66 
5101.30.70 
Other 
Unimproved 
wool; 
other wool, not finer 
than 468 
Other 
Free 
l.ltl 
kg-f6.25% 
81.6*/ 
kg-t-20% 
81.6</ 
kg-i-20% 
Free (MX) 
0.8</kg-i-0.6% 
(IL) Ztl 
kg-t-2.5% (CA) 
(2) EFFECTIVE DATE.—^The amendments made by this sub-
section take effect on the effective date of the proclamation 
issued by the President imder section 103(a) to carry out Sched-
ule XX. 
(b) DUTY FREE TREATMENT FOR OCTADECYL ISOCYANATE AND 
5-CHLORO-2-(2,4-DICHLORO-PHENOXY)PHENOL.—The President— 
(1) shall proclaim duty-fi^e entry for octadecyl isocyanate 
and 5-Chloro-2-(2,4-dichloro-pheno3cy)phenol, to be effective on 
the effective date of the proclamation issued by the President 
under section 103(a) to carry out Schedule XX, and 
19 use 3523. 
108 STAT. 4828 
PUBLIC LAW 103-465—DEC. 8, 1994 
(2) shall take such actions as are necessary to reflect such 
tariff treatment in Schedule XX. 
19 u s e 3524. 
SEC. 115. CONSULTATION AND LAYOVER REQUIREMENTS FOR, AND 
EFFECTIVE DATE OF, PROCLAIMED ACTIONS. 
If a provision of this Act provides that the implementation 
of an action by the President by proclamation is subject to the 
consultation and layover requirements of this section, such action 
may be proclaimed onlv if— 
(1) the President has obtained advice regarding the pro-
posed action from— 
(A) the appropriate advisory committees established 
under section 135 of the Trade Act of 1974 (19 U.S.C. 
2155), and 
(B) the International Trade Commission; 
President. 
(2) the President has submitted a report to the Conmiittee 
Reports. 
^j^ Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate that sets forth— 
(A) the action proposed to be proclaimed and the rea-
sons for such actions, and 
(B) the advice obtained under paragraph (1); 
(3) a period of 60 calendar days, beginning with the first 
day on wmch the President has met the requirements of para-
graphs (1) and (2) with respect to such action, has expired; 
and 
(4) the President has consulted with such conmiittees 
regarding the proposed action during the period referred to 
in paragraph (3). 
19 use 3521 
SEC. 116. EFFECTIVE DATE. 
(a) IN GENERAL.—^Except as provided in section 114(a) £ind 
subsection (b) of this section, this subtitie and the amendments 
made by this subtitie take effect on the date on which the WTO 
Agreement enters into force with respect to the United States. 
(b) SECTION 115.—Section 115 takes effect on the date of the 
enactment of this Act 
Subtitle C—^Uruguay Round 
Implementation and Dispute Settlement 
19 u s e 3531. 
SEC. 121. DEFINITIONS. 
For purposes of this subtitie: 
(1) ADMINISTERING AUTHORITY.—^The term "administering 
authority" has the meaning given that term in section 771(1) 
of the Tariff Act of 1930. 
(2) APPELLATE BODY.—^The term "Appellate Body" means 
the Appellate Body estabUshed under Article 17.1 of the Dispute 
Settlement Understanding. 
(3) APPRO piUATE CONGRESSIONAL COMMITTEES; CONGRES-
SIONAL COMMITTEES.— 
(A) APPROPRIATE CONGRESSIONAL COMMITTEES.—^The 
term "appropriate congressional committees" means the 
committees referred to in subparagraph (B) and any other 
committees of the Congress that have jurisdiction involving 
the matter with respect to which consultations are to be 
held. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4829 
(B) CONGRESSIONAL COMMITTEES.—The term "congres-
sional committees" means the Committee on Ways and 
Means of the House of Representatives and the Committee 
on Finance of the Senate. 
(4) DISPUTE SETTLEMENT PANEL; PANEL.—^The terms "dis-
pute settlement panel" and "panel" mean a panel established 
pursuant to Article 6 of the Dispute Settlement Understanding. 
(5) DISPUTE SETTLEMENT BODY.—The term "Dispute Settle-
ment Body" means the Dispute Settlement Body administering 
the rules and procedures set forth in the Dispute Settlement 
Understanding. 
(6) DISPUTE SETTLEMENT UNDERSTANDING.—^The term "Dis-
pute Settlement Understanding" means the Understanding on 
JRules and Procedures Groverning the Settlement of Disputes 
referred to in section 101(d)(16). 
(7) GENERAL COUNCIL.—The term "General Council" means 
the General Council established under paragraph 2 of Article 
IV of the WTO Agreement. 
(8) MINISTERIAL CONFERENCE.—^The term "Ministerial Con-
ference" means the Ministerial Conference established under 
paragraph 1 of Article IV of the WTO Agreement. 
(9) OTHER TERMS.—The terms "Antidumping Agreement", 
"Agreement on Subsidies and Countervailing Measures", and 
"Safeguards Agreement" mean the agreements referred to in 
section 101(d) (7), (12), and (13), respectively. 
SEC. 122. IMPLEMENTATION OF URUGUAY ROUND AGREEMENTS. 
19 USC 3532. 
(a) DECISIONMAKING.—In the implementation of the Uruguay 
Round Agreements and the functioning of the World Trade 
Organization, it is the objective of the United States to ensure 
that the Ministerial Conference and the General Council continue 
the practice of decisionmaking by consensus followed under the 
GATT 1947, as required by paragraph 1 of article D
C of the WTO 
Agreement. 
(b) CONSULTATIONS WITH CONGRESSIONAL COMMITTEES.—In 
furtherance of the objective set forth in subsection (a), the Trade 
Representative shall consult with the appropriate congressional 
committees before any vote is taken by the Ministerial Conference 
or the General Council relating to— 
(1) the adoption of an interpretation of the WTO Agreement 
or another multilateral trade agreement, 
(2) the amendment of any such agreement, 
(3) the granting of a waiver of any obligation under any 
such agreement, 
(4) the adoption of any amendment to the rules or proce-
dures of the Ministerial Conference or the General Council, 
(5) the accession of a state or separate customs territory 
to the WTO Agreement, or 
(6) the adoption of any other decision, 
if the action described in paragraph (1), (2), (3), (4), (5), or (6) 
would substantially affect the rights or obligations of the United 
States under the WTO Agreement or another multilateral trade 
agreement or potentially entails a change in Federal or State law. 
(c) REPORT ON DECISIONS.— 
(1) IN GENERAL.—Not later than 30 days after the end 
of any calendar year in which the Ministerial Conference or 
the General Council adopts by vote any decision to take any 
108 STAT. 4830 
PUBLIC LAW 103-465—DEC. 8, 1994 
action described in paragraph (1), (2), (4), or (6) of subsection 
(b), the Trade Representative shall submit a report to the 
appropriate congressional committees describing— 
(A) the nature of the decision; 
(B) the efforts made by the United States to have 
the matter decided by consensus pursuant to paragraph 
1 of article IX of the WTO Agreement, and the results 
of those efforts; 
(C) which coimtries voted for, and which countries 
voted against, the decision; 
(D) the rights or obUgations of the United States 
affected by the decision and any Federal or State law 
that would be amended or repealed, if the President after 
consultation with the Congress determined that such 
amendment or repesd was an appropriate response; and 
(E) the action the President intends to take in response 
to the decision or, if the President does not intend to 
take any action, the reasons therefor. 
(2) ADDITIONAL REPORTING REQUIREMENTS.— 
(A) GRANT OF WAIVER.—In the case of a decision to 
grant a waiver described in subsection (b)(3), the report 
under paragraph (1) shall describe the terms and conditions 
of the waiver and the rights and obUgations of the United 
States that are affected by the waiver. 
(B) ACCESSION.—In the case of a decision on accession 
described in subsection (b)(5), the report under paragraph 
(1) shall state whether the United States intends to invoice 
Article XIII of the WTO Agreement 
(d) CONSULTATION ON REPORT.—Promptly after the submission 
of a report under subsection (c), the Trade Representative shall 
consult with the appropriate congressional committees with respect 
to the report. 
19 use 3533. 
SEC. 123. DISPUTE SETTLEMENT PANELS AND PROCEDURES. 
(a) 
REVIEW 
BY PRESIDENT.—The President shall 
review 
annually the WTO pEuiel roster and shall include the panel roster 
and the list of persons serving on the Appellate Body in the annual 
report submitted by the President under section 163(a) of the Trade 
Act of 1974. 
(b) QUALIFICATIONS OF APPOINTEES TO PANELS.—^The Trade 
Representative shall— 
(1) seek to ensure that persons appointed to the WTO 
panel roster are well-qualified, £uid that the roster includes 
persons with esroertise in the subject areas covered by the 
Uruguay Round Agreements; and 
(2) inform the President of persons nominated to the roster 
by other WTO member countries. 
(c) RULES GOVERNING CONFUCTS OF INTEREST.—The Trade 
Representative shall seek the estabHshment by the General Council 
and the Dispute Settlement Body of rules governing conflicts of 
interest by persons serving on panels and members of the Appellate 
Body and shall describe, in the annual report submitted under 
section 124, any progress made in establishing such rules. 
(d) NOTIFICATION OF DISPUTES.—Promptly after a dispute 
settlement panel is established to consider the consistency of Fed-
eral or State law with any of the Uruguay Round Agreements, 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4831 
the Trade Representative shall notify the appropriate congressional 
committees of— 
(1) the nature of the dispute, including the matters set 
forth in the request for the establishment of the panel, the 
legal basis of me complaint, and the specific measures, in 
particular any State or Federal law cited in the request for 
estabHshment of the panel; 
(2) the identity of the persons serving on the panel; and 
(3) whether there was any departure from tne nile of 
consensus with respect to the selection of persons to serve 
on the panel. 
(e) NOTICE OF APPE,\LS OF PANEL REPORTS.—If an appeal is 
taken of a report of a panel in a proceeding described in subsection 
(d), the Trade Representative shall, promptly after the notice of 
appeal is filed, notify the appropriate congressional committees 
of— 
(1) the issues under appeal; and 
(2) the identity of the persons serving on the Appellate 
Body who are reviewing the report of the panel. 
(f) ACTIONS UPON CIRCULATION OF REPORTS.—Promptly after 
the circulation of a report of a panel or of the Appellate Body 
to WTO members in a proceeding described in subsection (d), the 
Trade Representative shall— 
(1) notify the appropriate congressional committees of the 
report; 
(2) in the case of a report of a panel, consult with the 
appropriate congressional committees concerning the nature 
of £iny appeal that may be taken of the report; and 
(3) ii the report is adverse to the United States, consult 
with the appropriate congressional committees .concerning 
whether to implement the report's recommendation and, if so, 
the manner of such implementation and the period of time 
needed for such implementation. 
(g) REQUIREMENTS FOR AGENCY ACTION.— 
(1) CHANGES IN AGENCY REGULATIONS OR PRACTICE.—In 
any case in which a dispute settlement panel or the Appellate 
Body finds in its report that a regulation or practice of a 
department or agency of the United States is inconsistent with 
any of the Uruguay Round Agreements, that regulation or 
practice may not be amended, rescinded, or otherwise modified 
in the implementation of such report unless and imtil— 
(A) the appropriate congressional committees have 
been consulted imder subsection (f); 
(B) the Trade Representative has sought advice regard-
ing the modification fix)m relevsmt private sector advisory 
committees established under section 135 of the Trade 
Act of 1974 (19 US.C. 2155); 
(C) the head of the relevant department or agency Federal 
has provided an opportunity for pubUc comment by pubUsh- ^^u|^*^5-
ing in the Federal Register the proposed modification and ^" 
the explanation for the modification; 
(D) the Trade Representative has submitted to the 
appropriate cong:ressional committees a report describing 
the proposed modification, the reasons for the modification, 
and a sunmiary of the advice obtained under subparagraph 
(B) with respect to the modification; 
108 STAT. 4832 
PUBLIC LAW 103-465—DEC. 8, 1994 
(E) the Trade Representative and the head of the rel-
evant department or agency have consulted with the appro-
priate congressional committees on the proposed contents 
of the finafmle or other modification; and 
^®'*?*?* 
(F) the final rule or other modification has been pub-
pubifcation 
^shed in the Federal Register. 
(2) EFFECTIVE DATE OF MODIFICATION.—A final rule or other 
modification to which paragraph (1) appHes may not go into 
efiect before the end of the 60-day period beginnii^ on the 
date on which consultations under paragraph (1)(E) begin, 
imless the President determines that £in earher effective date 
is in the national interest 
(3) VOTE BY CONGRESSIONAL COMMITTEES.—During the 60-
day period described in paragraph (2), the Committee on Ways 
and Means of the House of Representatives and the Committee 
on Finance of the Senate may vote to indicate the agreement 
or disagreement of the committee with the proposed contents 
of the final rule or other modification. Any such vote shall 
not be binding on the department or agency which is 
implementing the rule or other modification. 
(4) INAPPLICABILITY TO ITC.—This subsection does not apply 
to any regulation or practice of the International Trade 
Commission-
(h) CONSULTATIONS REGARDING REVIEW OF WTO RULES AND 
PROCEDURES.—Before the review is conducted of the dispute settle-
ment rules and procedures of the WTO that is provided for in 
the Decision on the AppUcation of the Understanding on Rules 
and Procedures Governing the Settlement of Disputes, as such 
decision is set forth in the Ministerial Declarations and Decisions 
adopted on April 15, 1994, together with the Uruguay Roimd Agree-
ments, the Trade Representative shall consult wim the congres-
sional committees regarding the poHcy of the United States 
concerning the review. 
19 use 3534. 
SEC. 124. ANNUAL REPORT ON THE WTO. 
Not later than March 1 of each year beginning in 1996, the 
Trade Representative shall submit to the Congress a report describ-
ing, for the preceding fiscal year of the WTO— 
(1) the major activities and work programs of the WTO, 
including the functions and activities oi the committees estab-
lished under article IV of the WTO Agreement, and the expendi-
tures made by the WTO in connection with those activities 
and programs; 
(2) the percentage of budgetary assessments by the WTO 
that were accounted for by each WTO member country, includ-
ing the United States; 
(3) the total number of personnel employed or retained 
by the Secretariat of the WTO, and the number of professional, 
administrative, and support staff of the WTO; 
(4) for each personnel category described in paragraph 
(3), the number of citizens of each country, and the average 
salary of the personnel, in that category; 
(5) each report issued by a panel or the Appellate Body 
in a dispute settlement proceeding regarding Federal or State 
law, and any efforts by the Trade Representative to provide 
for implementation of the recommendations contained in a 
report that is adverse to the United States; 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4833 
(6) each proceeding before a panel or the Appellate Body 
that was initiated during that fiscal year regarding Federal 
or State law, the status of the proceeding, and the matter 
at issue; 
(7) the status of consultations with any State whose law 
was the subject of a report adverse to the United States that 
was issued by a panel or the Appellate Body; and 
(8) any progress achieved in increasing the transparency 
of proceedings of tiie Ministerial Conference and the General 
Council, and of dispute settiement proceedings conducted pursu-
ant to the Dispute Settiement Understanding. 
SEC. 125. REVIEW OF PARTICIPATION IN THE WTO. 
19 USC 3535. 
(a) REPORT ON THE OPERATION OF THE WTO.—The first annual 
report submitted to the Congress imder section 124— 
(1) after the end of the 5-year period beginning on the 
date on which the WTO Agreement enters into force with 
respect to the United States, and 
(2) after the end of everv 5-year period thereafter, 
shall include an analysis of tne effects of the WTO Agreement 
on the interests of the United States, the costs and benefits to 
the United States of its participation in the WTO, and the value 
of the continued participation of the United States in the WTO. 
(b) CONGRESSIONAL DISAPPROVAL OF U.S. PARTICIPATION IN THE 
WTO.— 
(1) GENERAL RULE.—^The approval of the Congress, provided 
under section 101(a), of the WTO Agreement shall cease to 
be effective if, and only if, a joint resolution described in sub-
section (c) is enacted into law pursuant to the provisions of 
paragraph (2). 
(2) PROCEDURAL, PROVISIONS.—(A) The reqiiirements of this 
paragraph are met if the joint resolution is enacted under 
subsection (c), and— 
(i) the Congress adopts and transmits the joint resolu-
tion to the President before the end of the 90-day period 
(excluding any day described in section 154(b) of the Trade 
Act of 1974), beginning on the date on which the Congress 
receives a report referred to in subsection (a), and 
(ii) if the President vetoes the joint resolution, each 
House of Congress votes to override that veto on or before 
the later of the last day of the 90-day period referred 
to in clause (i) or the last day of the 15-day period (exclud-
ing any day described in section 154(b) of the Trade Act 
of 1974) beginning on the date on which the Congress 
receives the veto message 
fi*om 
the President 
(B) A joint resolution to which this section appUes may 
be introduced at any time on or after the date on which the 
President transmits to the Congress a report described in sub-
section (a), and before the end of the 90-day period referred 
to in subparagraph (A). 
(c) JOINT RESOLUTIONS.— 
(1) JOINT RESOLUTIONS.—For purposes of this section, the 
term "joint resolution" means only a joint resolution of the 
2 Houses of Congress, the matter after the resolving clause 
of which is as follows: T h a t the Congress withdraws its 
approval, provided under section 101(a) of the Uruguay Round 
108 STAT. 4834 
PUBLIC LAW 103-465—DEC. 8, 1994 
Agreements Act, of the WTO Agreement as defined in section 
2(9) of that Act". 
(2) PROCEDURES.—(A) Joint resolutions may be introduced 
in either House of the Congress by any member of such House. 
(B) Subject to the provisions of this subsection, the provi-
sions of subsections (b), (d), (e), and (f) of section 152 of the 
Trade Act of 1974 (19 U.S.C. 2192(b), (d), (e), and (f)) apply 
to joint resolutions to the same extent as such provisions apply 
to resolutions under such section. 
(C) If the committee of either House to which a joint 
resolution has been referred has not reported it by the close 
of the 45th day after its introduction (excluding any dav 
described in section 154(b) of the Trade Act of 1974), sucn 
conmiittee shall be automatically discharged fix)m fiirtiier 
consideration of the joint resolution smd it shall be placed 
on the appropriate calendar. 
(D) It is not in order for— 
(i) the Senate to consider any joint resolution unless 
it has been reported by the Committee on Finance or 
the committee nas been dischsirged under subparagraph 
(C); or 
(u) the House of Representatives to consider any joint 
resolution unless it has been reported by the Committee 
on Ways and Means or the conmiittee has been discharged 
under subparagraph (C). 
(E) A motion in the House of Representatives to proceed 
to the consideration of a joint resolution may only be made 
on the second legislative day after the calendar day on which 
the Member m£iKing the motion announces to the House his 
or her intention to do so. 
(3) 
CONSIDERATION OF SECOND 
RESOLUTION NOT IN 
ORDER.—It shall not be in order in either the House of Rep-
resentatives or the Senate to consider a joint resolution (other 
than a pint resolution received fix>m the other House), if that 
House nas previously adopted a joint resolution under this 
section. 
(d) RULES OF HOUSE OF REPRESENTATIVES AND SENATE.—^This 
section is enacted by the Congress— 
(1) as an exercise of the rulemaking power of the House 
of Representatives and the Senate, respectively, and as such 
is deemed a part of the rules of each House, respectively, 
and such procedures supersede other rules only to the extent 
that they are inconsistent with such other rules; and 
(2) with the fiiU recognition of the constitutional right 
of either House to change the rules (so far as relating to 
the procedm^s of that House) at any time, in the same manner, 
and to the same extent as any other rule of that House. 
19 use 3536. 
SEC. 126. INCREASED TRANSPARENCY. 
The Trade Representative shall seek the adoption by the Min-
isterial Conference and General Council of procedures that will 
ensure broader appUcation of the principle of transparency and 
clarification of the costs and benefits of trade policy actions, tlirough 
the observance of open and equitable procedures in trade matters 
by the Ministerial Conference and the (Jeneral Coimcil, and by 
the dispute settlement panels and the Appellate Body under the 
Dispute Settlement Understanding. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4835 
SEC. 127. ACCESS TO THE WTO DISPUTE SETTLEMENT PROCESS. 
19 USC 3537. 
(a) IN GENERAL.—^Whenever the United States is a party before 
a dispute settlement panel established pursuant to Article 6 of 
the Dispute Settlement Understanding, the Trade Representative 
shall, at each stage of the proceeding before the panel or the 
Appellate Body, consult with the appropriate congressional commit-
tees, the petitioner (if any) tmder section 302(a) of the Trade Act 
of 1974 (19 U.S.C. 2412) with respect to the matter that is the 
subject of the proceeding, and relevant private sector advisory 
committees estabUshed under section 135 of the Trade Act of 1974 
(19 U.S.C. 2155), and shall consider the views of representatives 
of appropriate interested private sector and nongovernmental 
organizations concerning the matter. 
(b) NOTICE AND PUBUC COMMENT.—In any proceeding described 
in subsection (a), the Trade Representative shall— 
(1) promptiy after requesting the estabHshment of a panel. Federal 
or receiving a request from another WTO member coimtry 
pufucation 
for the establishment of a panel, publish a notice in the Federal 
Register— 
(A) identiJ^'ing the initial parties to the dispute, 
(B) setting fortii the major issues raised by the country 
requesting the establishment of a panel and the legal basis 
of the complaint, 
(C) identifying the specific measures, including any 
State or Federal law cited in the request for establishment 
of the panel, and 
(D) seeking written comments from the pubUc concern-
ing the issues raised in the dispute; and 
(2) take into account £my advice received from appropriate 
congressional committees and relevant private sector advisory 
committees referred to in subsection (a), and written conunents 
received pursuant to paragraph (1)(D), in preparing United 
States submissions to the panel or tlie Appellate Body. 
(c) ACCESS TO DOCUMENTS.—In each proceeding described in 
subsection (a), the Trade Representative shall— 
(1) make written siibmissions by the United States referred 
to in subsection (b) available to the public promptiy after they 
are submitted to the panel or Appellate Body, except that 
the Trade Representative is authorized to withhold from disclo-
sure any information contained in such submissions identified 
by the provider of the information as proprietary information 
or information treated as confidential by a foreign government; 
(2) request each other party to the dispute to permit the 
Trade Representetive to make that party's written submissions 
to the panel or the Appellate Body available to the pubUc; 
and 
(3) make each report of the panel or the Appellate Body 
available to the pubUc promptiy after it is circulated to WTO 
members, and iniona the public of such availability. 
(d) REQUESTS FOR NONCONFIDENTL\L SUMMARIES.—In any 
dis-
§ute settiement proceeding conducted pursuant to the Dispute 
ettiement Understanding, the Trade Representative shall request 
each party to the dispute to provide nonconfidential summaries 
of its written submissions, if that party has not made its written 
submissions pubhc, and shall make those summaries available to 
the pubUc promptiy after receiving them. 
108 STAT. 4836 
PUBLIC LAW 103-465—DEC. 8, 1994 
Reports. 
(e) PuBUC FiLE.—The Trade Representative shall maintain 
a file accessible to thepubUc on each dispute settlement proceeding 
to which the United States is a party tjiat is conducted pursuant 
to the Dispute Settlement Understanding. The file shall include 
all United States submissions in the proceeding and a listing of 
any submissions to the Trade Representative fix)m the pubUc witii 
respect to the proceeding, as well as the report of the dispute 
settlement panel and the report of the Appellate Body. 
(f) CONFORMING AMENDMENT.—Section 135(a)(1)(B) of the 
Trade Act of 1974 (19 U.S.C. 2155(a)(1)(B)) is amended to read 
as foUows: 
"(B) the operation of any trade agreement once entered 
into, including preparation for dispute settlement panel 
proceedings to which the United States is a party; and". 
SEC. 128. ADVISORY COMMITTEE PARTICIPATION. 
Section 135(b)(1) of the Trade Act of 1974 (19 U.S.C. 2155(b)(1)) 
is amended by inserting "nongovernmental environmental and con-
servation organizations, after "retailers,". 
19 use 3538. 
SEC. 129. ADMINISTRATIVE ACTION FOLLOWING WTO PANEL REPORTS. 
(a) 
ACTION 
BY UNITED 
STATES 
INTERNATIONAL 
TRADE 
COMMISSION.— 
(1) ADVISORY REPORT.—If a dispute settlement panel finds 
in an interim report under Article 15 of the Dispute Settiement 
Understanding, or the Appellate Body finds in a report under 
Article 17 of that Understanding, that an action by the Inter-
national Trade Commission in connection witii a particular 
proceeding is not in conformity with the obUgations of the 
United States under the Antidfumping Agreement, the Safe-
guards Agreement, or the Agreement on Subsidies and Counter-
vsdUng Measures, the Traoe Representative may request the 
Commission to issue an advisory report on whether titie VII 
of the Tariff Act of 1930 or titie II of the Trade Act of 1974, 
as the case may be, permits the Conmiission to take steps 
in connection with the particular proceeding that would render 
its action not inconsistent witii the findings of the panel or 
the Appellate Body concerning those obUgations. The Trade 
Representative shall notify the congressional committees of 
such request 
(2) TIME 
LIMITS FOR REPORT.—The Conunission shall 
transmit its report under paragraph (1) to the Trade Repre-
sentative— 
(A) in the case of an interim report described in para-
graph (1), within 30 calendar days after the Trade Rep-
resentative requests the report; and 
(B) in the case of a report of the Appellate Body, 
within 21 calendar days after the Trade Representative 
requests the report. 
(3) CONSULTATIONS ON REQUEST FOR COMMISSION DETER-
MINATION.—If a majority of the Commissioners issues an 
affirmative report under paragraph (1), the Trade Representa-
tive shall consult with the congressional committees concerning 
the matter. 
(4) COMMISSION 
DETERMINATION.—Notwithstanding any 
provision of the Tariff Act of 1930 or titie II of the Trade 
Act of 1974, if a majority of the Commissioners issues an 
affirmative report imder paragraph (1), the Commission, upon 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4837 
the written request of the Trade Representative, shall issue 
a determination in connection with the particular proceeding 
that would render the Commission's action described in para-
graph (1) not inconsistent with the findings of the panel or 
Appellate Body. The Commission shall issue its determination 
not later than 120 days after the request from the Trade 
Representative is made. 
(5) CONSULTATIONS ON IMPLEMENTATION OF COMMISSION 
DETERMINATION.—The Trade Representative shall consult with 
the congressional committees before the Commission's deter-
mination under paragraph (4) is implemented. 
(6) REVOCATION OF ORDER.—If, by virtue of the Commis-
sion's determination under paragraph (4), an antidumping or 
countervailing duty order with respect to some or all of the 
imports that are subject to the action of the Commission 
^ 
described in paragraph (1) is no longer supported by an affirma-
tive Commission determination under title VII of the Tariff 
Act of 1930 or this subsection, the Trade Representative may, 
after consulting with the congressional committees under para-
graph (5), direct the administering authority to revoke the 
antidumping or countervailing duty order in whole or in part. 
(7) MODIFICATION OF ACTION UNDER TITLE II OF TRADE 
ACT OF 1974.—Section 204(b) of the Trade Act of 1974 (19 
U.S.C. 2254(b)) is amended by adding at the end the following 
new paragraph: 
"(3) Notwithstanding paragraph (1), the President may, 
after receipt of a Commission determination under section 
129(a)(4) of the Uruguay Round Agreements Act and consulting 
with the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate, 
reduce, modify, or terminate action taken under section 203.". 
(b) ACTION BY ADMINISTERING AUTHORITY.— 
(1) CONSULTATIONS WITH ADMINISTERING AUTHORITY AND 
CONGRESSIONAL COMMITTEES.—Promptly after a report by a Reports, 
dispute settlement panel or the Appellate Body is issued that 
contains findings that an action by the administering authority 
in a proceeding under title VII of the Tariff Act of 1930 is 
not in conformity with the obligations of the United States 
under the Antidumping Agreement or the Agreement on Sub-
sidies and Countervailing Measures, the Trade Representative 
shall consult with the administering authority and the congres-
sional committees on the matter. 
(2) DETERMINATION BY ADMINISTERING AUTHORITY.—Not-
withstanding any provision of the Tariff Act of 1930, the admin-
istering authority shall, within 180 days after receipt of a 
written request from the Trade Representative, issue a deter-
mination in connection with the particular proceeding that 
would render the administering authority's action described 
in paragraph (1) not inconsistent with the findings of the panel 
or the Appellate Body, 
(3) CONSULTATIONS BEFORE IMPLEMENTATION.—Before the 
administering authority implements any determination under 
paragraph (2), the Trade Representative shall consult with 
the administering authority and the congressional committees 
with respect to such determination. 
(4) IMPLEMENTATION OF DETERMINATION.—The Trade Rep-
resentative may, after consulting with the administering 
108 STAT. 4838 
PUBLIC LAW 103-465—DEC. 8, 1994 
authority and the congressional committees under paragraph 
(3), direct the administering authority to implement, in whole 
or in part, the determination made imder paragraph (2). 
(c) 
EFFECTS 
OF 
DETERMINATIONS; 
NOTICE 
OF 
IMPLEMENTATION.— 
(1) EFFECTS OF DETERMINATIONS.—^Determinations concern-
ing title VII of the Tariff Act of 1930 that are implemented 
imder this section shall apply with respect to unliquidated 
entries of the suhject merchandise (as defined in section 771 
of that Act) that are entered, or withdrawn from warehouse, 
for consumption on or after— 
(A) in the case of a determination by the Conmiission 
under subsection (a)(4), the date on which the Trade Rep-
resentative directs the administering authority under sub-
section (a)(6) to revoke an order pursuant to that 
determination, and 
(B) in the case of a determination by the administering 
authority under subsection (b)(2), the date on which the 
Trade Representative directs the administering authority 
under subsection Q))(4) to implement that determination. 
Federal 
(2) NOTICE OF IMPLEMENTATION.— 
publication 
^^^ '^^® administering authority shall pubUsh in the 
Federal Register notice of the implementation of any deter-
mination made under this section with respect to title 
VII of the Tariff Act of 1930. 
(B) The Trade Representative shall pubhsh in the Fed-
eral Register notice of the implementation of any deter-
mination made under this section with respect to title 
II of the Trade Act of 1974. 
(d) OPPORTUNITY FOR COMMENT BY INTERESTED PARTIES.—Prior 
to issuing a determination under this section, the administering 
authority or the Commission, as the case may be, shall provide 
interested parties with an opportunity to submit written comments 
and, in appropriate cases, may hold a hearing, with respect to 
the determination. 
(e) JUDICIAL OR BINATIONAL PANEL REVIEW.— 
(1) 
REVIEW OF DETERMINATIONS ON RECORD.—Section 
516A(a)(2) of the Tariff Act of 1930 (19 U.S.C. 1516a(a)(2)) 
is amended— 
(A) in subparagraph (A)(i)— 
(i) in subclause (I) by striking "(B), or" and insert-
ing "(B)", and 
(ii) by adding after subclause (II) the following: 
"(III) notice of the implementation of any 
determination described in clause (vii) of subpara-
graph (B), or"; and 
(B) in subparagraph (B), by adding at the end the 
following new clause: 
"(vii) A determination by the administering author-
ity or the Commission under section 129 of the 
Uruguay Round Agreements Act concerning a deter-
mination under title VII of the Tariff Act of 1930.". 
(2) TIME LIMITS FOR CASES INVOLVING FREE TRADE AREA 
COUNTRIES.—Section 516A(a)(5) of the Tariff Act of 1930 (19 
U.S.C. 1516a(a)(5)) is amended by adding at the end the follow-
ing new subparagraph: 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4839 
"(E) For a determination described in clause (vii) of 
paragraph (2)(B), the 31st day after the date on which 
notice of the implementation of the determination is pub-
Ushed in the Federal Register.". 
(3) REVIEW OF CASES INVOLVING FREE TRADE AREA COUNTRY 
MERCHANDISE.—Section 516A(g)(8)(A)(i) of the Tariff Act of 1930 
(19 U.S.C. 1516a(gX8)(A)(i)) is amended by striking "sub-
paragraph (A) or (B)" and inserting "subparagraph (A), (B), 
or(Er. 
SEC. 130. EFFECTIVE DATE. 
19 USC 3531 
This subtitie and the amendments made by this subtitle take 
effect on the date on which the WTO Agreement enters into force 
with respect to the United States. 
Subtitle D—Related Provisions 
SEC. 131. WORKING PARTY ON WORKER RIGHTS. 
President. 
(a) IN GENERAL.—The President shall seek the establishment 
in the GATT 1947, and, upon entry into force of the WTO Agreement 
with respect to the United States, in the WTO, of a working party 
to examine the relationship of internationally recognized worker 
rights, as defined in section 502(a)(4) of the Trade Act of 1974, 
to the articles, objectives, and related instruments of the GATT 
1947 and of 
the WTO, respectively. 
(b) OBJECTIVES OF WORKING PARTY.—The objectives of the 
United States for the working party described in subsection (a) 
are to— 
(1) explore the linkage between international trade and 
internationally recognized worker rights, as defined in section 
502(a)(4) of the Trade Act of 1974, taking into account dif-
ferences in the level of development among countries; 
(2) examine the effects on international trade of the system-
atic denial of such rights; 
(3) consider ways to address such effects; and 
(4) develop metiiods to coordinate the work program of 
the working party with the International Labor Oi^anization. 
(c) REPORT TO CONGRESS.—The President shall report to the 
Congress, not later than 1 year after the date of the enactment 
of this Act, on the progress made in estabUshing the working 
party under this section, and on United States objectives with 
respect to the working party's work program. 
SEC. 132. IMPLEMENTATION OF RULES OF ORIGIN WORK PROGRAM. 19 USC 3552. 
If the President enters into an agreement developed under 
the work program described in Article 9 of the Agreement on 
Rules of Origin referred to in section 101(d)(10), the President 
may implement United States obUgations under such an agreement 
under United States law only pursuant to authority granted to 
the President for that purpose by law enacted after the effective 
date of this titie. 
SEC. 133. MEMBERSHIP IN WTO OF BOYCOTTING COUNTRIES. 
19 USC 3553. 
It is the sense of the Congress that the Trade Representative 
should vigorously oppose the admission into the World Trade 
Organization of any country which, through its laws, regulations, 
official poUcies, or governmental practices, fosters, imposes, com-
108 STAT. 4840 
PUBLIC LAW 103-465-DEC. 8, 1994 
plies with, furthers, or supports any boycott described in section 
8(a) of the Export Administration Act of 1979 (50 U.S.C. App. 
2407(a)) (as in effect on August 20, 1994), including requiring 
or encouraging entities within that country to refuse to do business 
with persons who do not comply with requests to take any action 
prohibited under that section. 
President. 
SEC. 134. AFRICA TRADE AND DEVELOPMENT POLICY. 
19 u s e 3554 
(a) DEVELOPMENT OF POLICY.—The President should develop 
and implement a comprehensive trade and development poHcy for 
the countries of Africa. 
(b) REPORTS TO CONGRESS.—The President shall, not later than 
12 months after the date of the enactment of this Act and annually 
thereafter for a period of 4 years, submit to the Conmiittee on 
Ways and Means and the Conmiittee on Foreign Affairs of the 
House of Representatives, the Committee on Finance and the 
Committee on Foreign Relations of the Senate, and other appro-
priate committees of the Congress, a report on the steps teken 
to carry out subsection (a). 
19 u s e 3555. 
SEC. 135. OBJECTIVES FOR EXTENDED NEGOTIATIONS. 
(a) TRADE IN FINANCIAL SERVICES.—The principal negotiating 
objective of the United States in the extended negotiations on 
financial services to be conducted under the auspices of the WTO 
is to seek to secure commitments, from a wide range of commercially 
important developed and developing countries, to reduce or elimi-
nate barriers to the supply of financial services, including barriers 
that deny national treatment or market access by restricting the 
estabhshment or operation of fineincial services providers, as the 
condition for the United States— 
(1) offering commitments to provide national treatment 
and market access in each of the financial services subsectors, 
and 
(2) making such commitments on a most-favored-nation 
basis. 
(b) TRADE IN BASIC TELECOMMUNICATIONS SERVICES.—The prin-
cipal negotiating objective of the United States in the extended 
negotiations on oasic telecommunications services to be conducted 
under the auspices of the WTO is to obtain the opening on non-
discriminatory terms and conditions of foreign markets for basic 
telecommunications services through faciUties-based competition or 
through the ressile of services on existing networks. 
(c) TRADE IN CIVIL AIRCRAFT.— 
(1) NEGOTIATIONS.—The principal negotiating objectives of 
the United States in the extended negotiations on trade in 
civil aircraft to be conducted under the auspices of the WTO 
are— 
(A) to obtain competitive opportunities for United 
States exports in foreign markets substantially equivalent 
to those afforded to foreign products in the United States, 
(B) to obtain the reduction or elimination of specific 
tariff and nontariff barriers, including through expanded 
membership in the Agreement on Trade in Civil Aircraft 
and in the US-EC bilateral agreement for large civil 
aircraft, 
(C) to maintain vigorous Eind effective disciplines on 
subsidies practices with respect to civil aircraft products 
•i^Q^i" 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4841 
under the Agreement on Subsidies and Countervailing 
Measures referred to in section lOKdX 12), 
(D) to maint£iin the scope and coverage on indirect 
support as specified in the US-EC bilateral agreement 
on large civil aircraft, and 
(E) to obtain increased transparency with respect to 
foreign subsidy programs in the civil aircraft sector, both 
through greater government disclosure with respect to the 
use of taxpayer moneys and higher financigil disclosure 
standards for companies receiving government supports 
(including disclosure comparable to that required under 
United States securities laws). 
(2) DEFINITIONS.—For purposes of paragraph (1)— 
(A) the term "civil aircrjift^' means mose products to 
which the Agreement on Trade in Civil Aircraft applies, 
(B) the term large civil aircraft" has the meaning 
given that term in Annex II to the US-EC bilateral 
agreement, 
(C) the term "indirect support" means indirect govern-
ment support as defined in Annex II to the US-EC bilateral 
agreement, 
(D) the term "Agreement on Trade in Civil Aircraft" 
means the Agreement on Trade in Civil Aircraft approved 
by the Congress under section 2 of the Trade Agreements 
Act of 1979, and 
(E) the term "US-EC bilateral agreement" means the 
Agreement Concerning the AppUcation of the GATT Agree-
ment on Trade in Civil Aircraft Between the European 
Economic Community and the Government of the United 
States of America on trade in large civil aircraft, entered 
into on July 17, 1992. 
SEC. 136. REPEAL OF TAX ON IMPORTED PERFUMES; DRAWBACK OF 
TAX 
ON 
DISTILLED 
SPIRITS 
USED 
IN 
PERFUME 
MANUFACTURE. 
(a) REPEAL OF TAX ON IMPORTED PERFUMES.—Subsection (a) 
of section 5001 of the Internal Revenue Code of 1986 is amended 
26 USC 5001. 
by striking paragraph (3) and redesignating the following para-
graphs accordingly. 
(b) DRAWBACK OF TAX ON DISTILLED SPIRITS USED IN PERFUME 
MANUFACTURE.—Sections 5131(a), 5132, 5134(c)(1), and 7652(g) of 
such Code are each amended by striking "or flavoring extracts" 26 USC 5131, 
and inserting "flavoring extracts, or perfiime". 
^^^^' ^^^'*' ^^^^• 
(c) CONFORMING AMENDMENTS.— 
(1) Subsection (b) of section 5002 of such Code is amended 
26 use 5002. 
by striking paragraph (1) and redesignating the following para-
graphs accordingly. 
(2) Subsection (f) of section 5005 of such Code is amended— 
26 USC 5005. 
(A) by striking "section 5001(a)(6) and (7)" in paragraph 
(3) and inserting 'Section 5001(a)(5) and (6)", and 
(B) by striking "section 5001(a)(5)" in paragraph (4) 
and inserting "section 5001(a)(4)". 
(3) Subsection (b) of section 5007 of such Code is amended 
26 USC 5007. 
to read as follows: 
"(b) COLLECTION OF TAX ON IMPORTED DISTILLED SPIRITS.— 
The internal revenue tax imposed by section 5001(a)(1) and (2) 
upon imported distilled spirits shall be collected by the Secretary 
108 STAT. 4842 
PUBLIC LAW 103-465—DEC. 8, 1994 
and deposited as internal revenue collections, under such regula-
tions as the Secretary may prescribe. Section 5688 shall be 
appHcable to the disposition of imported spirits.". 
26 use 5007. 
(4) Paragraph (3) of section 5007(c) of such Code is amended 
by striking 'Section 5001(a)(5), (6), and (7)" and inserting "sec-
tion 5001(a)(4), (5), and (6)". 
(5) Paragraph (1) of section 5061(b) of such Code is 
amended to read as follows: 
"(1) section 5001(a)(4), (5), or (6),". 
26 use 5001 
(d) EFFECTIVE DATE.—The simendments made by this section 
"o^- 
shall take effect on January 1,1995. 
19 use 3556. 
SEC. 137. CERTAIN NONRUBBER FOOTWEAR. 
In the case of nonrubber footwear imported from Brazil— 
(1) which is subject to Treasury Decision 74-233, dated 
September 9, 1974, 
(2) which was entered, or withdrawn from warehouse for 
consimiption, on or before October 28,1981, and 
(3) with respect to which entries are unUquidated on the 
date of the enactment of this Act, 
countervailing duties shall be assessed at rates equal to the amount 
of the cash deposit of the estimated countervailing duties required 
on such footwear at the time of entry or withdrawal from warehouse 
for consumption. Interest on imderpayments of Eimounts required 
to be deposited as countervailing duties shall be paid in accordance 
with section 778 of the Tariff Act of 1930 (19 U.S.C;. 1677g). 
19 use 3551 
SEC. 188. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as provided in section 136(d) and 
subsection (b) of this section, this subtitie and the amendments 
made by this subtitie take effect on the date of the enactment 
of this Act. 
(b) SECTIONS 132 AND 135.—Sections 132 and 135 take effect 
on the date on which the WTO Agreement enters into force with 
respect to the United States. 
TITLE II—ANTIDUMPING AND 
COUNTERVAILING DUTY PROVISIONS 
SEC. 201. REFERENCE. 
Except as otherwise expressly provided, whenever in this titie 
an amendment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference shall 
be considered to be made to a section or other provision of the 
TariffActofl930. 
Subtitle A—General Provisions 
SEC. 211. ACTION WITH RESPECT TO PETITIONS. 
(a) COUNTERVAILING DUTY INVESTIGATIONS.—Section 702(b) (19 
U.S.C. 1671a(b)) is amended— 
(1) in paragraph (3) by striking "subsection 702(b)(1)'' and 
inserting "paragraph (1)", and 
(2) by adding at the end the following: 
"(4) ACTION WITH RESPECT TO PETITIONS.— 
^••^HSfrt-
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4843 
"(A) NOTIFICATION OF GOVERNMENTS.—Upon receipt of 
a petition filed under paragraph (1), the administering 
authority shall— 
"(i) notify the government of any exporting country 
named in the petition by deUvering a pubUc version 
of the petition to an appropriate representative of such 
country; and 
"(ii) provide the government of any exporting coun-
try named in the petition that is a Subsidies Agreement 
coimtry an opportunity for consultations wim respect 
to the petition. 
"(B) ACCEPTANCE OF COMMUNICATIONS.—The admin-
istering authority shall not accept any unsoUcited oral or 
written communication fi:x)m any person other than an 
interested party described in section 771(9) (C), (D), (E), 
(F), or (G) before the administering authority makes its 
decision whether to initiate an investigation, except as 
provided in subpara^aph (A)(ii) and subsection (c)(4)(D), 
and except for inquiries regarding the status of the admin-
istering authority s consideration of the petition. 
"(C) NONDISCLOSURE OF CERTAIN INFORMATION.—The 
administering authority and the Conunission shall not dis-
close information with regard to any draft petition sub-
mitted for review and comment before it is filed under 
paragraph (1).". 
(b) ANTIDUMPING INVESTIGATIONS.—Section 732(b) (19 U.S.C. 
1673a(b)) is amended by adding at the end the following: 
"(3) ACTION WITH RESPECT TO PETITIONS.— 
"(A) NOTIFICATION OF GOVERNMENTS.—^Upon receipt of 
a petition filed under paragraph (1), the administering 
authority shall notify the government of any exporting 
country named in the petition by deUvering a pubUc version 
of the petition to an appropriate representative of such 
country. 
"(B) ACCEPTANCE OF COMMUNICATIONS.—The admin-
istering authority shall not accept any unsoHcited oral or 
written communication from any person other than an 
interested party described in section 771(9) (C), (D), (E), 
(F), or (G) before the administering authority makes its 
decision whether to initiate an investigation, except as 
provided in subsection (c)(4)(D), and except for inquiries 
regarding the status of the administering authority's 
consideration of the petition. 
"(C) NONDISCLOSURE OF CERTAIN INFORMATION.—The 
administering authority and the Conmiission shall not dis-
close information with regard to any draft petition sub-
mitted for review and comment before it is filed luider 
paragraph (1).". 
SEC. 212. PETITION AND PRELIMINARY DETERMINATION. 
(a) GENERAL REQUIREMENTS.— 
(1) COUNTERVAILING DUTY PETITION.—Section 702(c) (19 
U.S.C. 1671a(c)) is amended to read as follows: 
"(c) PETITION DETERMINATION.— 
"(1) IN GENERAL.— 
"(A) TIME FOR INITL^U. DETERMINATION.—Except as pro-
vided in subparagraph (B), within 20 days after the aate 
108 STAT. 4844 
PUBLIC LAW 103-465—DEC. 8, 1994 
on which a petition is filed under subsection G)), the admin-
istering authority shall— 
"(i) after examining, on the basis of sources readily 
available to the administering authority, the accuracy 
and adequacy of the evidence provided in the petition, 
determine whether the petition alleges the elements 
necessary for the imposition of a duty under section 
701(a) and contains information reasonably available 
to the petitioner supporting the allegations, and 
"(ii) determine if the petition has been filed by 
or on behalf of the industry. 
"(B) EXTENSION OF TIME.—In any case in which the 
administering authority is required to poll or otherwise 
determine support for the petition by the industry under 
paragraph (4)(D), the administering authority may, in 
exceptional circumstances, apply subparagraph (A) by 
substituting 'a maximiun of 40 days' for *20 days'. 
"(C) TIME LIMITS WHERE PETITION INVOLVES SAME MER-
CHANDISE AS AN ORDER THAT HAS BEEN REVOKED.—If a 
petition is filed under this section with respect to merchan-
dise that was the subject merchandise of— 
"(i) a countervailing duty order that was revoked 
under section 751(d) in the 24 months preceding the 
date the petition is filed, or 
"(ii) a suspended investigation that was terminated 
under section 751(d) in the 24 months preceding the 
date the petition is filed, 
the administering authority and the Commission shall, to 
the maximum extent practicable, expedite any investigation 
initiated under this section with respect to the petition, 
"(2) AFFIRMATIVE DETERMINATIONS.—If the determinations 
under clauses (i) and (ii) of paragraph (1)(A) are affirmative, 
the administering authority shall initiate an investigation to 
determine whether a countervailable subsidy is being provided 
with respect to the subject merchandise. 
"(3) NEGATIVE DETERMINATIONS.—If the determination 
imder clause (i) or (ii) of paragraph (1)(A) is negative, the 
administering authority shcdl dismiss the petition, terminate 
the proceeding, and notify the petitioner in writing of the 
reasons for the determination. 
"(4) DETERMINATION OF INDUSTRY SUPPORT.— 
"(A) GENERAL RULE.—For purposes of this subsection, 
the administering authority shall determine that the peti-
tion has been filed by or on behalf of the industry, if— 
"(i) the domestic producers or workers who support 
the petition account for at least 25 percent oi the 
total production of the domestic like product, and 
"(ii) the domestic producers or workers who sup-
port the petition accoimt for more than 50 percent 
of the production of the domestic like product produced 
by that portion of the industry expressing support for 
or opposition to the petition. 
"(B) CERTAIN POSITIONS DISREGARDED.— 
"(i) PRODUCERS RELATED TO FOREIGN PRODUCERS.— 
In determining industry support under subpsiragraph 
(A), the administering authoritj^ shall disregard tne 
position of domestic producers who oppose the petition. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4845 
if such producers are related to foreign producers, as 
defined in section 771(4)(B)(ii), unless such domestic 
producers demonstrate that their interests as domestic 
producers would be adversely affected by the imposi-
tion of a countervailing duty order. 
**(ii) PRODUCERS WHO ARE IMPORTERS.—The admin-
istering authority may disregard the position of domes-
tic producers of a domestic like product who are 
importers of the subject merchandise. 
"(C) SPECIAL RULE FOR REGIONAL INDUSTRIES.—If the 
petition alleges that the industry is a regional industry, 
the administering authority shall determine whether the 
petition h£is been filed by or on behalf of the industry 
by applying subparagraph (A) on the basis of production 
in the region. 
"(D) POLLING THE INDUSTRY.—If the petition does not 
establish support of domestic producers or workers account-
ing for more than 50 percent of the total production of 
the domestic like product, the administering authority 
shall— 
"(i) poll the industry or rely on other information 
in order to determine if there is support for the petition 
as required by subparagraph (A), or 
"(ii) if there is a large number of producers in 
the industry, the administering authority may deter-
mine industry support for the petition by using any 
statistically valid sampling method to poll me industry. 
"(E) COMMENTS BY INTERESTED PARTIES.—Before the 
administering authority makes a determination 
with 
respect to initiating an investigation, any person who would 
qualify as an interested party under section 771(9) if an 
investigation were initiated, may submit comments or 
information on the issue of industry support After the 
administering autiiority makes a determination 
with 
respect to initiating an investigation, the determination 
regarding industry support shall not be reconsidered. 
"(5) DEFINITION OF DOMESTIC PRODUCERS OR WORKERS.— 
For purposes of this subsection, the term 'domestic producers 
or workers' means those interested parties who are eligible 
to file a petition under subsection (b)(1)(A).''. 
(2) ANTIDUMPING DUTY PETITION.—Section 732(c) (19 U.S.C. 
1673a(c)) is amended to read as follows: 
"(c) PETITION DETERMINATION.— 
"(1) IN GENERAL.— 
"(A) TIME FOR INITIAL DETERMINATION.—Except as pro-
vided in subparagraph (B), within 20 days after the date 
on which a petition is filed under subsection (b), the admin-
istering aumority shaU— 
"(i) after examining, on the basis of sources readily 
available to the administering authority, the accuracy 
and adequacy of the evidence provided in the petition, 
determine whether the petition alleges the elements 
necessary for the imposition of a duty under section 
731 and contains information reasonably available to 
the petitioner supporting the allegations, and 
"(ii) determine if me petition has been filed by 
or on behalf of the industry. 
108 STAT. 4846 
PUBLIC LAW 103-465—DEC. 8, 1994 
*(B) EXTENSION OF TIME.—In any case in which the 
administering authority is required to poll or otherwise 
determine support for the petition by the industry under 
paragraph (4)(D), the administering authority may, in 
exceptional circumstances, apply subpargigraph (A) by 
substituting *a maximimi of 40 days' for '20 days'. 
"(C) TIME LIMITS WHERE PETITION INVOLVES SAME MER-
CHANDISE AS AN ORDER THAT HAS BEEN REVOKED.—If a 
petition is filed under this section with respect to merchan-
dise that was the subject merchandise of— 
**(i) an antidumping duty order or finding that 
was revoked under section 751(d) in the 24 months 
preceding the date the petition is filed, or 
"(ii) a suspended investigation that was terminated 
under section 751(d) in the 24 months preceding the 
date the petition is filed, 
the administering authority and the Commission shall, to 
the maximum extent practicable, expedite any investigation 
initiated under this section with respect to the petition. 
"(2) AFFIRMATIVE DETERMINATIONS.—If the determinations 
under clauses (i) and (ii) of paragraph (1)(A) are affirmative, 
the administering authority shall imtiate an investigation to 
determine whether the subject merchandise is being, or is likely 
to be, sold in the United States at less than its fair value. 
"(3) NEGATIVE DETERMINATIONS.—If the determination 
under clause (i) or (ii) of paragraph (1)(A) is negative, the 
administering authority shall dismiss the petition, terminate 
the proceeding, and notify the petitioner in writing of the 
reasons for the determination. 
"(4) DETERMINATION OF INDUSTRY SUPPORT.— 
"(A) GENERAL RULE.—^For purposes of this subsection, 
the administering authority shall determine that the peti-
tion has been filed by or on behalf of the industry, if— 
"(i) the domestic producers or workers who support 
the petition account for at least 25 percent of the 
total production of the domestic like product, and 
"(ii) the domestic producers or workers who sup-
port the petition account for more than 50 percent 
of the production of the domestic like product produced 
by that portion of the industry expressing support for 
or opposition to the petition, 
"(B) CERTAIN POSITIONS DISREGARDED.— 
"(i) PRODUCERS RELATED TO FOREIGN PRODUCERS.— 
In determining industry support under subparagraph 
(A), the administering authority shall disregard the 
position of domestic producers wno oppose the petition, 
if such producers are related to foreign producers, as 
defined in section 771(4)(B)(ii), imless such domestic 
producers demonstrate that their interests as domestic 
producers would be adversely affected by the imposi-
tion of an antidumping duty order. 
"(ii) PRODUCERS WHO ARE IMPORTERS.—^The admin-
istering authority may disregard the position of domes-
tic producers of a domestic Uke product who are 
importers of the subject merchandise. 
"(C) SPECIAL RULE FOR REGIONAL INDUSTRIES.—^If the 
petition alleges the industry is a regional industry, the 
«tf*jfir«i,^* 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4847 
administeriiig authority shall determine whether the peti-
tion has been filed by or on behalf of the industry by 
appljring subparagraph (A) on the basis of production in 
the region. 
"(D) POLLING THE INDUSTRY.—If the petition does not 
establish support of domestic producers or workers account-
ing for more than 50 percent of the total production of 
the domestic like product, the administering authority 
shall— 
"(i) poll the industry or rely on other information 
in order to determine if there is support for the petition 
as required by subparagraph (A), or 
"(ii) if there is a large number of producers in 
the industry, the administering authority may deter-
mine industry support for the petition by using any 
statistically vahd sampUng method to poll the industry. 
"(E) COMMENTS BY INTERESTED PARTIES.—^Before the 
administering authority makes a determination 
with 
respect to initiating an investigation, any person who would 
qualify as an interested party under section 771(9) if an 
investigation were initiated, may submit comments or 
information on the issue of industry support After the 
administering authority makes a determination 
with 
respect to initiating an investigation, the determination 
regarding industry support shall not be reconsidered. 
"(5) DEFINITION OF DOMESTIC PRODUCERS OR WORKERS.— 
For purposes of this subsection, the term 'domestic producers 
or workers' means those interested parties who are eligible 
to file a petition under subsection (b)(1)(A).''. 
(b) 
DETERMINATION BY THE COMMISSION 
OF REASONABLE 
INDICATION OF INJURY; 
PRELIMINARY DETERMINATION BY THE 
ADMINISTERING AUTHORITY.— 
(1) COUNTERVAIUNG DUTY INVESTIGATIONS.— 
(A) Section 703(a) (19 U.S.C. 1671b(a)) is amended 
to read as follows: 
"(a) DETERMINATION BY COMMISSION OF REASONABLE INDICA-
TION OF INJURY.— 
"(1) GENERAL RULE.—Except in the case of a petition dis-
missed by the administering authority under section 702(c)(3), 
the Commission, within the time specified ia paragraph (2), 
shall determine, based on the information available to it at 
the time of the determination, whether there is a reasonable 
indication that— 
"(A) an industry in the United States— 
**(i) is materially injured, or 
**(ii) is threatened with material injmy, or 
"(B) the establishment of an industry in the United 
States is materially retarded, 
by reason of imports of the subject merchandise and that 
imports of the subject merchandise are not negUgible. If the 
Conmiission finds titiat imports of the subject mercnandise are 
negUgible or otherwise makes a negative determination under 
this paragraph, the investigation shall be terminated. 
"(2) TIME FOR COMMISSION DETERMINATION.—The Commis-
sion shall make the determination described in paragraph (1)— 
"(A) in the case of a petition filed under section 702(b)— 
108 STAT. 4848 
PUBLIC LAW 103-465—DEC. 8, 1994 
**(i) within 45 days after the date on which the 
petition is filed, or 
"(ii) if the time has been extended pursuant to 
section 702(cXl)(B), within 25 days after the date on 
which the Commission receives notice 
fi:x)m 
the admin-
istering authority of initiation of the investigation, and 
"(B) in the case of an investigation initiated under 
section 702(a), within 45 days after the date on which 
the Commission receives notice fi*om the administering 
authority that £in investigation has been initiated under 
such section " 
(B) Section 705(b)(1) (19 U.S.C. 
1671d(b)(l)) is 
amended by adding at the end the following: "If the 
Conmiission determines that imports of the subject mer-
chandise are negligible, the investigation shall be termi-
nated.". 
(C) Section 703(b) (19 U.S.C. 1671b(b)) is amended— 
(i) in paragraph (1)— 
(I) by striking "85 days Eifter the date on which 
the petition is filed imder section 702(b)'' and 
inserting "65 days after the date on which the 
administering authority initiates an investigation 
under section 702(c)''; 
(II) by striking *T3est information" and insert-
ing "information"; and 
(III) by striking the last sentence; and 
(ii) in para^aph (2), by striking "85 days after 
the date on which the petition is filed under section 
702(b)" and inserting "65 days after the date on which 
the administering authority initiates an investigation 
under section 702(c)". 
(D) Section 703(cXl) (19 U.S.C. 1671b(c)) is amended 
by striking "150th day after the date on which a petition 
is filed under section 702(b)" and inserting "130th day 
after Hie date on which the administering authority initi-
ates an investigation under section 702(c)". 
(E) Section 702(bX3) (19 U.S.C. 1671a(bX3)) is amended 
by striking "twenty days" and inserting "5 days after the 
date on which the administering authority initiates an 
investigation under subsection (c),'. 
(F) Section 703(f) (19 U.S.C. 1671b(f)) is amended to 
read as follows: 
"(f) NOTICE OF DETERMINATION.—Whenever the Commission 
or the administering authority makes a determination under this 
section, the Commission or the administering authority, as the 
case may be, shall notify the petitioner, and other parties to the 
investigation, and the Commission or the administering authority 
(whichever is appropriate) of its determination. The administering 
authority shall include with such notification the facts and conclu-
sions on which its determination is based. Not later than 5 days 
after the date on which the determination is required to be made 
under subsection (aX2), the Commission shall transmit to the 
administering authoritv the facts and conclusions on which its 
determination is based.'. 
(2) ANTIDUMPING DUTY INVESTIGATIONS.— 
(A) Section 733(a) (19 U.S.C. 1673b(a)) is amended 
to read as follows: 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4849 
"(a) DETERMINATION BY COMMISSION OF REASONABLE INDICA-
TION OF INJURY.— 
"(1) GENERAL RULE.—Except in the case of a petition dis-
missed by the administering authority under section 732(c)(3), 
the Commission, within the time specified in paragraph (2), 
shall determine, based on the information available to it at 
the time of the determination, whether there is a reasonable 
indication that— 
"(A) an industry in the United States— 
"(i) is materially injured, or 
"(ii) is threatened with material injuiy, or 
"(B) the establishment of an industty in the United 
States is materially retarded, 
by reason of imports of the subject merchandise and that 
imports of the subject merchandise are not negUgible. If the 
, Commission fiiids that imports of the subject merchandise are 
neghgible or otherwise makes a negative determination under 
this pars^aph, the investigation shall be terminated. 
(2) TIME FOR COMMISSION DETERMINATION.—The Commis-
sion shall make the determination described in paragraph (1)— 
"(A) in the case of a petition filed under section 732(b)— 
"(i) within 45 days after the date on which the 
petition is filed, or 
"(ii) if the time has been extended pursuant to 
section 732(cXl)(B), within 25 days after the date on 
which the Commission receives notice fi^m the admin-
istering authority of initiation of the investigation, and 
**(B) in the case of an investigation initiated under 
section 732(a), within 45 days after the date on which 
the Commission receives notice fi*om the administering 
authority that an investigation has been initiated under 
such section " 
(B) Section 735(b)(1) (19 U.S.C. 
1673d(b)(l)) 
is 
amended by adding at the end the following: "If the 
Commission determines that imports of the subject mer-
j 
chandise 
are 
negUgible, 
the 
investigation 
shall 
be 
terminated.". 
j 
(C) Section 733(b)(1) (19 U.S.C. 
1673b(b)(l)) 
is 
I 
amended— 
I 
(i) in subparagraph (A)— 
j 
(I) by striking "160 days after the date on 
j 
which a petition is filed under section 732(b)" and 
inserting "140 days after the date on which the 
administering authority initiates an investigation 
imder section 732(c)"; £uad 
1 
(II) by striking *l3est information" and insert-
\ 
ing "information"; and 
1 
(ii) in subparagraph (B)— 
(I) by striking "120" and inserting "100"; 
(II) by striking "160" and inserting "140"; 
(III) by striking "100" and inserting "80"; and 
(IV) by striking "160" and inserting^l40". 
(D) Section 733(c)(1) (19 U.S.C. 1673b(c)(l)) is amended 
. by striking "210th day after the date on which a petition 
. is filed under section 732(b)" and inserting "190th day 
Eifter the date on which the administering authority initi-
ates an investigation under section 732(c)". 
108 STAT. 4850 
PUBLIC LAW 103-465—DEC. 8, 1994 
(E) Section 733(f) (19 U.S.C. 1673b(f)) is amended to 
read as follows: 
**(f) NOTICE OF DETERMINATION.—^Whenever the Commission 
or the administering authority makes a determination under this 
section, the Commission or the administering authority, as the 
case may be, shall notify the petitioner, and other parties to the 
investigation, and the Commission or the administering authority 
(whichever is appropriate) of its determination. The administering 
authority shall include with such notification the facts and conclu-
sions on which its determination is based. Not later than 5 days 
after the date on which the determination is required to be made 
under subsection (a)(2), the Commission shall transmit to the 
administering authoritv the facts and conclusions on which its 
determination is based. . 
SEC. 213. DE MINIMIS DUMPING MARGIN. 
(a) PRELIMINARY DETERMINATIONS.—Section 733(b) (19 U.S.C. 
1673b(b)) is amended by adding at the end the following new 
paragraph: 
"(3) D E MINIMIS DUMPING MARGIN.—In making a determina-
tion under this subsection, the administering authority shall 
disregard any weighted average dumping margin that is de 
minimis. For purposes of the preceding sentence, a weighted 
average dimipin^ margin is de minimis if the administering 
authority determines that it is less than 2 percent ad valorem 
or the equivalent specific rate for the subject merchandise.". 
(b) 
FINAL 
DETERMINATIONS.—Section 
735(a) 
(19 
U.S.C. 
1673d(a)) is amended by adding at the end the following new 
paragraph: 
"(4) D E MINIMIS DUMPING MARGIN.—In making a determina-
tion under this subsection, the administering authority shsill 
disregard any weighted average dumping margin that is de 
minimis as defined in section 733(bX3). . 
SEC. 214. CRITICAL CIRCUMSTANCES. 
(a) COUNTERVAIUNG DUTY INVESTIGATIONS.— 
(1) PREUMINARY DETERMINATIONS.—Section 703(e)(1) (19 
U.S.C. 1671b(e)(l)) is amended— 
(A) in the matter preceding subparagraph (A) by strik-
ing "best information and inserting information"; and 
(B) by amending subparagraphs (A) and (B) to read 
as follows: 
"(A) the alleged countervailable subsidy is inconsistent 
with the Subsidies Agreement, and 
"(B) there have been massive imports of the subject 
merchandise over a relatively short penod.". 
(2) FINAL DETERMINATIONS.—(A) Section 705(a)(2) (19 
U.S.C. 1671d(aX2)) is amended— 
(i) in subparagraph (A) by inserting "Subsidies" before 
"Agreement^'; and 
(ii) in subparagraph (B) by striking "class or kind 
of merchandise involved" and inserting "subject merchan-
dise". 
(B) Section 705(b)(4)(A) (19 U.S.C. 1671d(b)(4)) is amended 
to read as follows: 
"(A) 
COMMISSION 
STANDARD 
FOR 
RETROACTIVE 
APPUCATION.— 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4851 
**(i) IN GENERAL.—If the finding of the administer-
ing authority under subsection (a)(2) is affirmative, 
then the final determination of the Commission shall 
include a finding as to whether the imports subject 
to the affirmative determination under subsection 
(a)(2) are likely to luidermine seriously the remedial 
effect of the coimtervailing duty order to be issued 
under section 706. 
"(ii) FACTORS TO CONSIDER.—In making the evalua-
tion under clause (i), the Commission snail consider, 
among other factors it considers relevant— 
"(I) the timing and the volume of the imports, 
"(II) any rapid increase in inventories of the 
imports, and 
"(III) any other circumstances indicating that 
the remedial effect of the countervailing duty order 
will be seriously imdermined.". 
(b) ANTIDUMPING INVESTIGATIONS.— 
(1) PREUMINARY DETERMINATIONS.—Section 733(e)(1) (19 
U.S.C. 1673b(e)(l)) is amended— 
(A) in the matter preceding subparagraph (A) by strik-
ing "best information and inserting information"; and 
(B) by amending subparagraphs (A) and (B) to read 
as follows: 
"(A)(i) there is a history of dumping and material injury 
by reason of dmnped imports in the United States or else-
where of the subject merchandise, or 
"(ii) the person by whom, or for whose account, the 
merchandise was imported knew or should have known 
that the exporter was selling the subject merchandise at 
less than its fair value and that there was likely to be 
materisd injiuy by reason of such ssdes, and 
"(B) there have been massive imports of the subject 
merchandise over a relatively short penod.". 
(2) FINAL DETERMINATIONS.—(A) 
Section 735(a)(3) (19 
U.S.C. 1673d(a)(3)) is amended— 
(i) in clause (i) of subparagraph (A)— 
(I) by inserting "and material injiuy by reason 
of dmnped imports after "history of dumping"; and 
(II) by striking "class or kind of the merchandise 
which is me subject of the investigation" and inserting 
"subject merchandise"; 
(ii) in clause (ii) of subpsiragraph (A) by striking "mer-
chandise which is the subject of tlie investigation at less 
than its fair value" and inserting "subject merchandise 
at less than its fair value and that there would be material 
injiuy by reason of such sales"; and 
(ui) in subparagraph (B) by striking "merchandise 
which is the siibject or the investigation and inserting 
"subject merchandise". 
(B) Section 735(b)(4)(A) (19 U.S.C. 1673d(bX4)(A)) is 
amended to read as follows: 
"(A) 
COMMISSION 
STANDARD 
FOR 
RETROACTIVE 
APPUCATION.— 
"(i) IN GENERAL.—If the finding of the administer-
ing authority under subsection (aX3) is affirmative, 
then the final determination of the Commission shall 
108 STAT. 4852 
PUBLIC LAW 103-465—DEC. 8, 1994 
include a finding as to whether the imports subject 
to the affirmative determination under subsection 
(a)(3) are likely to undermine seriously the remedial 
effect of the antidumping duty order to be issued under 
section 736. 
"(ii) FACTORS TO CONSIDER.—In making the evalua-
tion under clause (i), the Commission shall consider, 
among other factors it considers relevant— 
"(I) the timing and the volume of the imports, 
"(II) a rapid increase in inventories of the 
imports, and 
"(III) any other circumstances indicating that 
the remedial effect of the antidumping order will 
be seriously undermined.". 
Federal 
SEC. 216. PROVISIONAL MEASURES. 
puSication. 
(a) COUNTERVAIUNG DUTIES.— 
(1) SUSPENSION OF LIQUIDATION.—Section 703(d) (19 U.S.C. 
1671b(d)) is amended— 
(A) in paragraph (1), by striking "warehouse" and aU 
that follows througn "Register," and inserting "warehouse, 
for consumption on or after the later of— 
"(A) the date on which notice of the determination 
is pubUshed in the Federal Register, or 
"(B) the date that is 60 days after the date on which 
notice of the determination to initiate the investigation 
is pubhshed in the Federal Register,"; and 
(B) by adding at the end the following: 
"The instructions of the administering authority under paragraphs 
(1) and (2) may not remain in effect for more than 4 months.". 
(2) CRITICAL CIRCUMSTANCES CASES.—Section 703(e)(2) (19 
U.S.C. 1671b(e)(2)) is amended by striking "warehouse, for 
consimiption on or after the date which is 90 days before 
the date on which suspension of Uquidation was first ordered." 
and inserting "warehouse, for consumption on or sifter the 
later of— 
"(A) the date which is 90 days before the date on 
which the suspension of Uquidation was first ordered, or 
"(B) the date on which notice of the determination 
to initiate the investigation is published in the Federal 
Register.". 
(b) ANTIDLI^PING DUTIES.— 
(1) SUSPENSION OF UQUIDATION.—Section 733(d) (19 U.S.C. 
1673b(d)) is amended— 
(A) in paragraph (1), by striking "warehouse" and all 
that follows througn "Register," and iosertlng "warehouse, 
for consumption on or after the later of— 
"(A) the date on which notice of the determination 
is pubhshed in the Federal Register, or 
"(B) the date that is 60 days after the date on which 
notice of the determination to initiate the investigation 
is pubUshed in the Federal Register,"; and 
(B) by adding at the end the foUowing: 
"The instructions of the administering authority under paragraphs 
(1) and (2) may not remain in effect for more than 4 months, 
except that the administering authority may, at the request of 
exporters representing a significant proportion of exports of the 
sfjs^ts; 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4853 
subject merchandise, extend that 4-month period to not more than 
6 months.". 
(2) CRITICAL CIRCUMSTANCES CASES.—Section 733(e)(2) (19 
U.S.C. 1673b(e)(2)) is amended by striking "warehouse, for 
consumption on or after the date which is 90 days before 
the date on which suspension of liquidation was first ordered." 
and inserting "warehouse, for consumption on or after the 
later of— 
"(A) the date which is 90 days before the date on 
which the suspension of liquidation was first ordered, or 
"(B) the date on which notice of the determination 
to initiate the investigation is published in the Federal 
Register.". 
SEC. 216. CONDITIONS 
ON 
ACCEPTANCE 
OF 
SUSPENSION 
AGREEMENTS. 
(a) COUNTERVAILING DUTIES.—Section 704(d)(1) (19 U.S.C. 
1671c(d)(l)) is amended by striking "In applying" and inserting 
the following: 
"Where practicable, the administering authority shall provide 
to the exporters who would have been subject to the agreement 
the reasons for not accepting the agreement and, to the extent 
possible, an opportunity to submit comments thereon. In apply-
ing". 
(b) ANTIDUMPING DUTIES.—Section 734(d) (19 U.S.C. 1673c(d)) 
is amended by adding at the end the following flush sentence: 
"Where practicable, the administering authority shall provide to 
the exporters who would have been subject to the agreement the 
reasons for not accepting the agreement and, to the extent possible, 
an opportunity to submit comments thereon.". 
SEC. 217. TERMINATION OF INVESTIGATION. 
(a) COUNTERVAILING DUTY INVESTIGATIONS.—Section 704(a)(1) 
(19 U.S.C. 1671c(a)(l)) is amended— 
(1) by striking "Except" and inserting "(A) WITHDRAWAL 
OF PETITION.—Except"; 
(2) by indenting the text so as to align it with subparagraph 
(B) (as added by paragraph (3) of this subsection); and 
(3) by adding at the end the following: 
"(B) REFILING OF PETITION.—If, within 3 months after 
the withdrawal of a petition under subparagraph (A), a 
new petition is filed seeking the imposition of duties on 
both the subject merchandise of the withdrawn petition 
and the subject merchandise from another country, the 
administering authority and the Commission may use in 
the investigation initiated pursuant to the new petition 
any records compiled in an investigation conducted pursu-
ant to the withdrawn petition. This subparagraph applies 
only with respect to the first withdrawal of a petition.". 
(b) ANTIDUMPING DUTY INVESTIGATIONS.—Section 734(a)(1) (19 
U.S.C. 1673c(a)(l)) is amended— 
(1) by striking "Except" and inserting "(A) WITHDRAWAL 
OF PETITION.—Except"; 
(2) by indenting the text so as to align it with subparagraph 
(B) (as added by paragraph (3) of this subsection); and 
(3) by adding at the end the following: 
"(B) REFILING OF PETITION.—If, within 3 months after 
the withdrawal of a petition under subparagraph (A), a 
new petition is filed seeking the imposition of duties on 
108 STAT. 4854 
PUBLIC LAW 103-465—DEC. 8, 1994 
both the subject merchandise of the withdrawn petition 
and the subject merchandise from another countiy, the 
administezing authority and the Commission may use in 
the investigation initiated pursuant to the new petition 
any records compiled in an investigation conductea piursu-
ant to the withdrawn petition. This subparagraph ap>plies 
only with respect to tne first withdrawal of a petition.". 
SEC. 218. SPECIAL RULES FOR REGIONAL INDUSTRIES. 
(a) SUSPENSION AGREEMENTS.— 
(1) COUNTERVAILING DUTY INVESTIGATIONS.—Section 
704 
(19 U.S.C. 1671c) is amended by adding at the end the following 
new subsection: 
"(1) SPECIAL RULE FOR REGIONAL INDUSTRY INVESTIGATIONS.— 
"(1) SUSPENSION AGREEMENTS.—If the Commission makes 
a regional industry determination imder section 771(4)(C), the 
administering aumority shall offer exporters of the subject 
merchandise who account for substantially all exports of mat 
merchandise for sale in the region concerned the opportunity 
to enter into an agreement described in subsection (b) or (c). 
"(2) 
REQUIREMENTS FOR SUSPENSION AGREEMENTS.—Anv 
agreement described in paragraph (1) shall be subject to all 
the requirements imposed under this section for otner agree-
ments under subsection (b) or (c), except that if tiie Commission 
makes a regional industry determination described in para-
graph (1) in the final affirmative determination under section 
705(b) but not in the preliminaiy affirmative determination 
imder section 703(a), any agreement described in paragraph 
(1) may be accepted witnin 60 days after the countervailmg 
duty order is published under section 706. 
"(3) EFFECT OF SUSPENSION AGREEMENT ON COUNTERVAIL-
ING DUTY ORDER.—If an agreement described in paragraph 
(1) is accepted after the coimtervaiHng duty order is published, 
the administering authority shall rescind the order, refund 
any cash deposit and release any bond or other security depos-
ited imder section 703(d)(1)(B), and instruct the Customs Serv-
ice that entries of the subject merchandise that were made 
during the period that the order was in effect shall be Uquidated 
without regard to countervailing duties.". 
(2) ANTIDUMPING INVESTIGATIONS.—Section 734 (19 U.S.C. 
1673c) is amended by adding at the end the following new 
subsection: 
"(m) SPECIAL RULE FOR REGIONAL INDUSTRY INVESTIGATIONS.— 
"(1) SUSPENSION AGREEMENTS.—If the Commission makes 
a re^onal industry determination under section 771(4)(C), the 
administering aumority shall offer exporters of the subject 
merchandise who account for substantially all exports of that 
merchandise for sale in the region concerned the opportunity 
to enter into an agreement described in subsection (b), (c), 
or(l). 
"(2) 
REQUIREMENTS FOR SUSPENSION AGREEMENTS.—^Anv 
agreement described in paragraph (1) shall be subiect to all 
the requirements imposed under this section for otner agree-
ments under subsection (b), (c), or (1), except that if the Commis-
sion makes a regional industry determination described in 
paragraph (1) in tne final affirmative determination under sec-
tion 735(b) but not in the preliminary affirmative determination 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4855 
under section 733(a), any agreement described in paragraph 
(1) may be accepted within 60 days after the antidumping 
order is published under section 736. 
"(3) EFFECT OF SUSPENSION AGREEMENT ON ANTIDUMPING 
DUTY ORDER.—If an sigreement described in paragraph (1) is 
accepted after the antidumping duty order is pubUsned, the 
adnunistering authority shall rescind the order, refund any 
cash deposit and release any bond or other security deposited 
imder section 733(d)(1)(B), and instruct the Customs Service 
that entries of the subject merchandise that were made during 
the period tiiat the order was in effect shall be Uquidated 
without regard to antidumping duties.". 
(b) APPUCABILITY OF ORDERS TO NEW SHIPPERS.— 
(1) COUNTERVAILING DUTY CASES.—Section 706 (19 U.S.C. 
167 le) is amended by adding at the end the following new 
subsection: 
"(c) SPECIAL RULE FOR REGIONAL INDUSTRIES.— 
"(1) IN GENERAL.—^In an investigation under this subtitie 
in which the Conmiission makes a regional industry determina-
tion under section 771(4XC), the administering authority shall, 
to the m£iximum extent possible, direct that duties be assessed 
only on the subject merchandise of the specific exporters or 
producers that exported the subject merchandise for sale in 
the region concerned during the period of investigation. 
"(2) EXCEPTION FOR NEW EXPORTERS AND PRODUCERS.— 
After pubHcation of the countervailing duty order, if the admin-
istering authority finds that a new exporter or producer is 
exporting the subject merchandise for sale in the region con-
cerned, the administering authority shall direct that duties 
be assessed on the subject merchandise of the new exporter 
or 
producer 
consistent 
with the provisions 
of section 
751(a)(2)(B).''. 
(2) ANTIDUMPING DUTY CASES.—Section 736 (19 U.S.C. 
1673e) is amended by adding at the end the following new 
subsection: 
"(d) SPECL!\L RULE FOR REGIONAL INDUSTRIES.— 
"(1) IN GENERAL.—^In an investigation in which the Commis-
sion makes a regional industry determination under section 
771(4)(C), the administering authority shall, to lie maximum 
extent possible, direct that duties be assessed only on the 
subject merchandise of the specific exporters or producers that 
exported the subject merchandise for sale in the region con-
cerned during the period of investigation. 
"(2) EXCEPTION FOR NEW EXPORTERS AND PRODUCERS.— 
After publication of the antidumping duty order, if the admin-
istering authoritjr finds that a new exporter or producer is 
exporting the subject merchandise for sale in the region con-
cerned, the administering authority shall direct that duties 
be assessed on the subject merchandise of the new exporter 
or 
producer 
consistent 
with the provisions 
of section 
751(a)(2XB).''. 
SEC. 219. DETERMINATION 
OF 
WEIGHTED 
AVERAGE 
DUMPING 
MARGIN. 
(a) PRELIMINARY DETERMINATION.— 
(1) IN GENERAL.—Section 733(d) (19 U.S.C. 1673b(d)) is 
amended— 
108 STAT. 4856 
PUBLIC LAW 103-465—DEC. 8, 1994 
(A) by striking paragraph (2); 
(B) by redesimating paragraph (1), as amended by 
section 215(bXl)(A), as peiragrapn (2); 
(C) by inserting "and" at the end of paragraph (2), 
as so redesignated; and 
(D) by inserting before such paragraph (2) the following 
new paragraph: 
"(l)(A)shaU— 
"(i) determine an estimated weighted average dumping 
margin for each exporter and producer individually inves-
tigated, and 
"(ii) determine, in accordance with section 735(c)(5), 
an estimated all-others rate for all exporters and producers 
not individually investigated, and 
"(B) shall order the posting of a cash deposit, bond, or 
other security, as the administering authority deems appro-
priate, for each entry of the subject merchandise in an amount 
based on the estimated weighted average dumping margin or 
the estimated all-others rate, whichever is appHcable,". 
(2) CONFORMING AMENDMENTS.—Section 733(b)(1)(A) (19 
U.S.C. 1673b(b)(l)(A)) is amended by striking the last sentence, 
(b) FINAL DETERMINATION.— 
(1) IN GENERAL.—Section 735(c)(1) (19 U.S.C. 1673d(c)(l)) 
is amended— 
(A) in subparagraph (B)— 
(i) by redesignating such subparagraph as subpara-
graph (C); and 
(ii) by striking "under paragraphs (1) and (2)" and 
all that follows through "security* and inserting "the 
suspension of Uquidation under section 733(d)(2)"; 
(B) by striking and" at the end of subparagraph (A); 
and 
(C) by inserting after subparagraph (A) the following 
new subparagraph: 
"(B)(i) the administering authority shall— 
"(I) determine the estimated weighted average 
dumping margin for each exporter and producer 
individually investigated, and 
"(II) determine, in accordance with paragraph (5), 
the estimated all-others rate for all exporters ana 
producers not individually investigated, and 
(ii) the administering authority shall order the posting 
of a cash deposit, bond, or other security, as the admmister-
ing authoritv deems appropriate, for each entry of the 
subject merchandise in an amount based on the estimated 
weighted average dimiping margin or the estimated all-
others rate, whichever is appUcable, and". 
(2) METHOD FOR DETERMINING WEIGHTED AVERAGE DUMPING 
MARGIN.—Section 735(c) (19 U.S.C. 1673d(c)) is amended by 
adding at the end the following new paragraph: 
"(5) METHOD FOR DETERMINING ESTIMATED ALL-OTHERS 
RATE.— 
"(A) GENERAL RULE.—For piuposes of this subsection 
and section 733(d), the estimated all-others rate shall be 
an amount equal to the weighted average of the estimated 
weighted average dumping margins established for export-
ers and producers individually investigated, excluding any 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4857 
zero and de minimis miargins, and any margins determined 
entirely under section 776. 
**(B) EXCEPTION.—If the estimated weighted average 
dumping maimns established for aU exporters and produc-
ers iadividually iQvestigated are zero or de minimis mar-
gins, or are determined entirely \mder section 776, the 
administering authority may use any reeisonable method 
to establish the estimated all-others rate for exporters and 
producers not individually investigated, includmg averag-
ing the estimated weignted average dumping mai^ns 
determined for the exporters and producers individually 
investigated.". 
(c) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) Section 733(e)(2) is amended by striking "subsection 
(d)(ir and inserting "subsection (d)(2)''. 
(2) Section 734(fK2XA) is amended— 
(A) in clause (i), by striking "section 733(d)(1)'' and 
inserting "section 733(d)(2)''; and 
(B) in clause (iii), by striking "section 733(d)(2)'' and 
inserting "section 733(d)(1)(B)''. 
(3) Section 734(f)(2)(B) is amended— 
(A) by striking "section 733(d)(1)'' and inserting "section 
733(d)(2)^; and 
(B) by striking "section 733(d)(2)'' and inserting "section 
733(d)(1)(B)". 
(4) Section 734(h)(3) is amended— 
(A) in subpara^aph (A), by striking "section 733(d)(1)" 
and inserting section 733(d)(2) ; and 
(B) in subparagraph (B), by striking "section 733(d)(2)" 
and inserting '^section 733(d)(1)(B)". 
(5) Section 734(i)(l)(A) is amended by 
733(d)(1)" and inserting "section 733(d)(2)". 
(6) Section 735(c)(2)(A) is amended by 
703(d)(1)" and inserting "section 733(d)(2)". 
(7) Section 735(c)(2)(B) is amended by 
733(d)(2)" and inserting "section 733(d)(1)(B)*. 
(8) Section 735(c)(3)(B) is amended by striking "section 
733(d)(2)" and inserting "section 733(d)(1)(B)*. 
(9) Section 736(b)(1) is amended by striking "section 
733(d)(1)" each place it appears and inserting 
"section 
733(d)(2)". 
(10) Section 737(a) is amended by striking "section 
733(d)(2)" each place it appears in the heading and in the 
text and inserting "section 733(d)(1)(B)". 
SEC. 220. REVIEW OF DETERAnNAIIONS. 
(a) IN GENERAL.—Section 751 (19 U.S.C. 1675) is amended 
to read as foUows: 
"SEC. 761. ADMINISTRATIVE REVIEW OF DETERMINATIONS. 
"(a) PERIODIC REVIEW OF AMOUNT OF DUTY.— 
"(1) IN GENERAL.—^At least once during each 12-month 
period beginning on the anniversary of the date of pubUcation 
of a countervailing duty order under this titie or under section 
303 of this Act, an antidumping duty order under this title 
or a finding under the Antidumping Act, 1921, or a notice 
of the suspension of an investigation, the administering author-
ity, if a request for such a review h£is been received and 
striking "section 
striking "section 
striking "section 
19 u s e 1673b. 
19 u s e 1673c. 
19 use 1673d. 
19 u s e 1673e. 
19 u s e 1673f. 
Federal 
Register, 
publication. 
79-194 0—95—10 : QL 3 Part 6 
108 STAT. 4858 
PUBLIC LAW 103-465—DEC. 8, 1994 
after publication of notice of such review in the Federal Reg-
ister, shall— 
"(A) review and determine the amount of any net 
countervailable subsidy, 
"(B) review, and determine (in accordance with para-
graph (2)), the amoimt of any antidumping duty, and 
"(C) review the current status of, ana compHance with, 
any agreement by reason of which an investigation wsis 
suspended, 
and 
review 
the 
amount 
of 
any 
net 
countervailable subsidy or dumping margin involved in 
the agreement, 
and shall pubUsh in the Federal Register the results of such 
review, together with notice of any duty to be assessed, esti-
mated duty to be deposited, or investigation to be resimied. 
"(2) DETERMINATION OF ANTIDUMPING DUTIES.— 
"(A) IN GENERAL.—For the purpose of paragraph (1)(B), 
the administering authority shall determine— 
"(i) the normsd value and export price (or con-
structed export price) of each entry of the subject mer-
chandise, and 
"(ii) the dumping margin for each such entry. 
"(B) 
DETERMINATION OF ANTIDUMPING OR COUNTER-
VAILING DUTIES FOR NEW EXPORTERS AND PRODUCERS.— 
"(i) IN GENERAL.—If the administering authority 
receives a request from an exporter or producer of 
the subject merchandise establishing that— 
"(I) such exporter or producer did not export 
the merchandise that was the subject of an anti-
dumping duty or countervailing duty order to the 
United States (or, in the case of a regional indus-
try, did not export the subject merchandise for 
sale in the region concerned) during the period 
of investigation, and 
"(II) such exporter or producer is not affiUated 
(within the meaning of section 771(33)) with any 
exporter or producer who exported the subject mer-
chandise to the United States (or in the case of 
a regional industry, who exported the subject mer-
chandise for sale in the region concerned) during 
that period, 
the administering authority shall conduct a review 
under this subsection to establish an individual 
weighted average dimiping margin or an individual 
coimtervailing duty rate (as the cstse may be) for such 
exporter or producer. 
"(ii) 
TIME FOR REVIEW UNDER CLAUSE (i).—The 
administering authority shall commence a review 
under clause (i) in the calendar month beginning 
after— 
"(I) the end of the 6-month period beginning 
on the date of the countervailing duty or antidump-
ing duty order under review, or 
"(II) the end of any 6-month period occurring 
thereafter, 
if the request for the review is made diuing that 6-
month period. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4859 
"(iii) POSTING BOND OR SECURITY.—^The administer-
ing authority shall, at the time a review imder this 
subparagraph is initiated, direct the Customs Service 
to aUow, at the option of the importer, the posting, 
until the completion of the review, of a bond or security 
in Ueu of a cash deposit for each entry of the subject 
merchandise. 
"(iv) TIME LIMITS.—^The administering authority 
shall make a preUminary determination in a review 
conducted under this suoparagraph within 180 days 
after the date on which the review is initiated, and 
a final determination within 90 days after the date 
the preUminary determination is issued, except that 
if the administering authority concludes that the case 
is extraordinarily complicated, it may extend the 180-
day period to 300 days and may extend the 90-day 
period to 150 days. 
(C) RESULTS OF DETERMINATIONS.—The determination 
under this paragraph shall be the basis for the assessment 
of coimtervaiUng or antidumping duties on entries of mer-
chandise covered by the determination and for deposits 
of estimated duties. 
"(3) TIME UMITS.— 
"(A) PRELIMINARY AND FINAL DETERMINATIONS.—The 
administering authority shall make a preUminary deter-
mination under subparagraph (A), (B), or (C) of paragraph 
(1) within 245 days after the last day of the month in 
which occurs the anniversary of the date of pubUcation 
of the order, finding, or suspension agreement for which 
the review under paragraph (1) is requested, and a final 
determination imder psiragraph (1) within 120 days after 
the date on which the preliininary determination is pub-
Ushed. If it is not practicable to complete the review within 
the foregoing time, the administering authority may extend 
that 245-day period to 365 days and may extend that 
120-day period to 180 days. The administering authority 
may extend the time for making a final determination 
without extending the time for making a preUminary deter-
mination, if such final determination is made not later 
than 300 days after the date on which the preUminary 
determination is published. 
"(B) LIQUIDATION OF ENTRIES.—If the administering 
authority orders any Uquidation of entries pursuant to 
a review under paragraph (1), such Uquidation shaU be 
made promptly and, to the greatest extent practicable, 
within 90 days after the instructions to Customs are issued. 
In any case in which liquidation has not occurred within 
that 90-day period, the Secretary of the Treasury shaU, 
upon the request of the affected party, provide an expla-
nation thereof. 
"(C) EFFECT OF PENDING REVIEW UNDER SECTION 
516A.—In a case in which a final determination under para-
graph (1) is under review under section 516A and a Uquida-
tion of entries covered by the determination is enjoined 
under section 516A(c)(2) or suspended under section 
516A(g)(5)(C), the administering authority shall, within 10 
days after the final disposition of the review under section 
108 STAT. 4860 
PUBLIC LAW 103-465—DEC. 8, 1994 
Federal 
Register, 
publication. 
516A, transmit to the Federal Register for publication the 
final disposition and issue instructions to the Customs 
Service with respect to the Uquidation of entries pursuant 
to the review. In such a case, the 90-day period referred 
to in subparagraph (B) shsdl begin on the day on which 
the administering authority issues such instructions. 
"(4) ABSORPTION OF ANTIDUMPING DUTIES.—During 
any 
review under this subsection initiated 2 years or 4 years after 
the pubHcation of an antidumping duty order under section 
736(a), the administering authority, if requested, shall deter-
mine whether antidumping duties have been absorbed by a 
foreign producer or exporter subject to the order if the subject 
mercnandise is sold in the United States through an importer 
who is afiiliated with such foreign producer or exporter. The 
administering authority shsdl notify the Commission of its find-
ings regarding such duty absorption for the Commission to 
consider in conducting a review under subsection (c). 
**(b) REVIEWS BASED ON CHANGED CIRCUMSTANCES.— 
"(1) IN GENERAL.—Whenever the administering authority 
or the Commission receives information concerning, or a request 
fix)m an interested party for a review of— 
"(A) a final affirmative determination that resulted 
ia an antidimiping duty order under this title or a finding 
under the Antidimiping Act, 1921, or in a countervaiHng 
duty order under this title or section 303, 
"(B) a suspension agreement accepted under section 
704 or 734, or 
"(C) a final affirmative determination resulting fix)m 
an investigation continued pursuant to section 704(g) or 
734(g), 
which shows changed circumstances sufficient to warrant a 
review of such determination or agreement, the administeriag 
authority or the Commission (as the case may be) shall conduct 
a review of the determination or agreement after pubUshing 
notice of the review in the Federal Register. 
"(2) COMMISSION REVIEW.—In conducting a review under 
this subsection, the Commission shall— 
"(A) in the case of a countervailing duty order or anti-
dumping duty order or finding, determine whether revoca-
tion of the order or finding is likely to lead to continuation 
or recurrence of material injury, 
"(B) in the case of a determination made pursuant 
to section 704(h)(2) or 734(h)(2), determine whether the 
suspension agreement continues to eliminate completely 
the injurious effects of imports of the subject merchandise, 
and 
"(C) in the case of an affirmative determination result-
ing fi^m an investigation continued under section 704(g) 
or 734(g), determine whether termination of the suspended 
investigation is hkely to lead to continuation or recurrence 
of material injury. 
"(3) BURDEN OF PERSUASION.—During a review conducted 
by the Commission under this subsection— 
"(A) the party seeking revocation of an order or finding 
described in parsigraph (1)(A) shall have the burden of 
persuasion with respect to whether there are changed cir-
cumstances sufficient to warrant such revocation, and 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4861 
"(B) the party seeking termination of a suspended 
investigation or a suspension agreement shall have the 
burden of persuasion with respect to whether there are 
changed circumstances sufficient to warrant such termi-
nation. 
"(4) LIMITATION ON PERIOD FOR REVIEW.—In the absence 
of good cause shown— 
"(A) the Commission may not review a determination 
made imder section 705(b) or 735Cb), or an investigation 
suspended under section 7()4 or 734, and 
"(B) the administering authority may not review a 
determination made under section 705(a) or 735(a), or £in 
investigation suspended under section 704 or 734, 
less than 24 months after the date of pubUcation of notice 
of that determination or suspension. 
"(c) FIVE-YEAR REVIEW.— 
"(1) IN GENERAL.—Notwithstanding subsection (b) and 
except in the case of a transition order defined in paragraph 
(6), 5 years after the date of publication of— 
"(A) a countervailing duty order (other than a counter-
vailing duty order to which subparagraph (B) applies or 
which was issued without an affirmative determination 
of injury by the Commission under section 303), an anti-
dumping duty order, or a notice of suspension of an inves-
tigation, described in subsection (aXD, 
"(B) a notice of injury determination under section 
753 with respect to a countervailing duty order, or 
"(C) a determination under this section to continue 
an order or suspension agreement, 
the administering authority and the Commission shall conduct 
a review to determine, in accordance with section 752, whether 
revocation of the countervailing or antidimiping duty order 
or termination of the investigation suspended under section 
704 or 734 would be likely to lead to continuation or recurrence 
of dumping or a coimtervailable subsidy (as the case may 
be) and of material injury. 
"(2) NOTICE OF INITIATION OF REVIEW.—Not later than 30 
days before the fifth Eumiversary of the date described in para-
graph (1), the administering authority shall publish in the 
Federal Register a notice of initiation of a review under this 
subsection and request that interested parties submit— 
"(A) a statement expressing their wilhngness to partici-
pate in tile review by providing information requested by 
the administering autiiority and the Commission, 
"(B) a statement regarding the likely effects of revoca-
tion of the order or termination of the suspended investiga-
tion, and 
"(C) such other information or industry data as the 
administering authority or the Conunission may specify. 
"(3) RESPONSES TO NOTICE OF INITIATION.— 
"(A) No RESPONSE.—If no interested party responds 
to the notice of initiation under this subsection, the admin-
istering autJiority shall issue a final determination, within 
90 days after the initiation of a review, revoking the order 
or terminating the suspended investigation to which such 
notice relates. For purposes of this paragraph, an interested 
Federal 
Register, 
publication. 
108 STAT. 4862 
PUBLIC LAW 103-465—DEC. 8, 1994 
party means a party described in section 771(9) (C), (D), 
(E),(F),or(G). 
"(B) INADEQUATE RESPONSE.—If interested parties pro-
vide inadequate responses to a notice of initiation, the 
administering authority, within 120 days after the initi-
ation of the review, or the Commission, within 150 days 
after such initiation, may issue, without further investiga-
tion, a final determination based on the facts available, 
in accordance with section 776. 
"(4) 
WAIVER OF PARTICIPATION BY CERTAIN INTERESTED 
PARTIES.— 
"(A) IN GENERAL.—^An interested party described in 
section 771(9) (A) or (B) may elect not to participate in 
a review conducted by the administering authority under 
this subsection and to participate only in the review con-
ducted by the Commission imaer this subsection. 
"(B) EFFECT OF WAIVER.—In a review in which an 
interested party waives its participation pursuant to this 
paragraph, the administering authority shall conclude that 
revocation of the order or termination of the investigation 
would be hkely to lead to continuation or recurrence of 
dumping or a countervailable subsidy (as the case may 
be) with respect to that interested party. 
"(5) CONDUCT OF REVIEW.— 
"(A) TIME LIMITS FOR COMPLETION OF REVIEW.—Unless 
the review has been completed pursuant to paragraph (3) 
or paragraph (4) applies, the administering authority shall 
make its nnal determination pursuant to section 752 (b) 
or (c) within 240 days after tne date on which a review 
is initiated under this subsection. If the administering 
authority makes a final affirmative determination, the 
Conmiission shall make its final determination pursuant 
to section 752(a) within 360 days after the date on which 
a review is initiated imder this subsection. 
"(B) EXTENSION OF TIME LIMIT.—The administering 
authority or the Commission (as the case may be) may 
extend tne period of time for making their respective deter-
minations under this subsection by not more than 90 days, 
if the administering authority or the Conmiission (as tiie 
case may be) determines that the review is extraordinarily 
compUcated. In a review in which the administering author-
ity extends the time for making a final determination, 
but the Commission does not extend the time for making 
a determination, the Commission's determination shsill be 
made not later than 120 days after the date on which 
the final determination of the administering authority is 
published. 
"(C) EXTRAORDINARILY COMPLICATED.—For purposes of 
this subsection, the administering authority or the Commis-
sion (as the case may be) may treat a review as extraor-
dinarily complicated if— 
"(i) there is a large nimiber of issues, 
"(ii) the issues to be considered are complex, 
"(iii) there is a large number of firms involved, 
"(iv) the orders or suspended investigations have 
been grouped as described in subparagraph (D), or 
"(v) it is a review of a transition order. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4863 
**(D) GROUPED REVIEWS.—^The Commission, in consulta-
tion with the administering authority, may group orders 
or suspended investigations for review if it considers tliat 
such grouping is appropriate and will promote administra-
tive efficiency. Where orders or suspended investigations 
have heen grouped, the Commission shall, subject to 
subparagraph (B), mjake its final determination under this 
subsection not later than 120 days after the date that 
the administering authority publishes notice of its final 
determination with respect to the last order or agreement 
in the group. 
"(6) SPECIAL TRANSITION RULES.— 
"(A) SCHEDULE FOR REVIEWS OF TRANSITION ORDERS.— 
"(i) INITIATION.—^The administering authority shall 
begin its review of transition orders in the 42d calendar 
month after the date such orders are issued. A review 
of all transition orders shall be initiated not later than 
the 5th anniversary after the date such orders are 
issued. 
**(ii) COMPLETION.—A review of a transition order , 
shall be completed not later than 18 months after 
the date such review is initiated. Reviews of all transi-
tion orders shall be completed not later than 18 months 
after the 5th anniversary of the date such orders are 
issued. 
*(iii) SUBSEQUENT REVIEWS.—The time limits set 
forth in clauses (i) and (ii) shall be appUed to aU 
subsequent 5-year reviews of transition orders by 
substituting 'date of the determination to continue such 
orders' for 'date such orders are issued'. 
"(iv) REVOCATION AND TERMINATION.—No transi-
tion order may be revoked imder this subsection before 
the date that is 5 years aft«r the date the WTO Agree-
ment enters into force with respect to the United 
States. 
**(B) SEQUENCE OF TRANSITION REVIEWS.—^The admin-
istering authority, in consultation with the Conmiission, 
shall determine such sequence of review of transition orders 
as it deems appropriate to promote administrative effi-
ciency. To the extent practicable, older orders shall be 
reviewed first 
"(C) DEFINITION OF TRANSITION ORDER.—^For purposes 
of this section, the term 'transition order' means— 
"(i) a coimtervailing duty order under this title 
or under section 303, 
"(ii) an antidumping duty order under this title 
or a finding under the Antidumping Act, 1921, or 
"(iii) a suspension of an investigation under section 
704 or 734, 
which is in effect on the date the WTO Agreement enters 
into force with respect to the United States. 
"(D) ISSUE DATE FOR TRANSITION ORDERS.—^For pur-
poses of this subsection, a transition order shall be treated 
as issued on the date the WTO Agreement enters into 
force with respect to the United States, if such order is 
based on an investigation conducted by both the admin-
istering authority and the Commission. 
108 STAT. 4864 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(d) REVOCATION OF ORDER OR FINDING; TERMINATION OF SUS-
PENDED INVESTIGATION.— 
"(1) IN GENERAL.—^The admimstering authority may revoke, 
in whole or in part, a countervailing duty order or an antidump-
ing duty order or finding, or terminate a suspended investiga-
tion, after review under subsection (a) or (b). The administering 
authority shall not revoke, in whole or in part, a countervailing 
duty order or terminate a suspended investigation on the basis 
of any export taxes, duties, or other chafes levied on the 
export of the subject merchandise to the United States which 
are specifically intended to offset the countervailable subsidy 
received. 
"(2) FrvE-YEAR REVIEWS.—In the case of a review conducted 
under subsection (c), the administering authority sh£jl revoke 
a countervailing duty order or an antidumping duty order or 
finding, or terminate a suspended investigation, unless— 
"(A) the administering authority makes a determina-
tion that dumping or a countervaUable subsidy, as the 
case may be, would be likely to continue or recur, and 
"(B) the Commission makes a determination that mate-
rial injury would be likely to continue or recur as described 
in section 752(a). 
"(3) APPUCATION 
OF REVOCATION OR TERMINATION.—A 
determination under this section to revoke an order or finding 
or terminate a suspended investigation shall apply with respect 
to imliquidated entries of the subject merchandise which are 
entered, or withdrawn from warehouse, for consumption on 
or after the date determined by the administering authority. 
"(e) HEARINGS.—Whenever the administering authority or the 
Commission conducts a review imder this section, it shall, upon 
the request of an interested party, hold a hearing in accordance 
with section 774(b) in connection witii that review. 
"(f) DETERMINATION THAT BASIS FOR SUSPENSION NO LONGER 
EXISTS.—If the determination of the Commission under subsection 
(b)(2)(B) is negative, the suspension agreement shall be treated 
as not accepted, beginning on tiie date of publication of the Commis-
sion's determination, and the administering authority and the 
Commission shall proceed, under section 704(i) or 734(i), as if 
the suspension agreement had been violated on that date, except 
that no duty under any order subsequentiy issued shall be assessed 
on merchandise entered, or withdrawn from warehouse, for 
consumption before that date. 
"(g) CORRECTION OF MINISTERIAL ERRORS.—The administering 
authority shall establish procedures for the correction of ministerial 
errors in final determinations within a reasonable time after the 
determinations are issued imder this section. Such procedures shall 
ensure opportunity for interested parties to present their views 
regarding any such errors. As used in this subsection, the term 
'ministerial error' includes errors in addition, subtraction, or other 
arithmetic ftinction, clerical errors resulting fix)m inaccurate copy-
ing, duplication, or the like, and any other type of unintentional 
error which the administering authority considers ministerial.". 
(b) REVIEW OF DETERMINATIONS.— 
19 use 1516a. 
(1) IN GENERAL.—Section 516A(a)(l) (19 U.S.C. 1516A(a)(l)) 
is amended by striking "or" at the end of subparagraph (B), 
by inserting "or" at the end of subparagraph (C), and by insert-
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4865 
inff immediately after subparagraph (C) the following new 
subparagraph: 
"(D) a final determination by the administering author-
ity or the Commission under section 751(0X3),". 
(2) 
TECHNICAL 
AMENDMENTS.—Section 516A(b)(l) 
(19 
U.S.C. 1516a(b)(l)) is amended— 
(A) in subparagraph (A), by striking "under paragraph 
(1) of subsection (a)" and inserting "under subparagraph 
(A), (B), or (C) of subsection (a)( 1)", and 
. 
(B) in subparagraph (B)— 
(i) by striking "(B) in an action" and inserting 
"(BXi) in an action , 
(ii) by striking the end period and inserting ", 
or", and 
(iii) by adding at the end the following: 
"(ii) in an action brought imder paragraph (1)(D) 
of subsection (a), to be arbitrary, capricious, an abuse 
of discretion, or otherwise not in accordance with law.". 
(c) CONFORMING AMENDMENT.—Section 504 (19 U.S.C. 
1504) 
is amended— 
(1) in subsection (a), by inserting "except as provided in 
section 751(a)(3)," before "an entry of merchandise not liq-
uidated", and 
(2) in subsection (d), by striking "When a suspension" and 
inserting "Except as provided in section 751(a)(3), when a 
suspension". 
SEC. 221. REVIEW DETERMINATIONS. 
(a) IN GENERAL.—Chapter 1 of subtitie C of titie VII (19 U.S.C. 
1675) is amended by adding at the end the following new section: 
"SEC. 752. SPECIAL RULES FOR SECTION 751(b) AND 751(c) REVIEWS. 19 USC 1675a. 
"(a) 
DETERMINATION OF LIKELIHOOD OF CONTINUATION OR 
RECURRENCE OF MATERIAL INJURY.— 
"(1) IN GENERAL.—In a review conducted under section 
751 (b) or (c), the Commission shall determine whether revoca-
tion of an order, or termination of a suspended investigation, 
would be likely to lead to continuation or recurrence of material 
injury within a reasonably foreseeable time. The Commission 
shall consider the likely volume, price effect, and impact of 
imports of the subject merchandise on the industry if the order 
is revoked or the suspended investigation is terminated. The 
Commission shall take into account— 
"(A) its prior injury determinations, including the vol-
ume, price effect, and impact of imports of the subject 
merchandise on tiie industiy before me order was issued 
or the suspension agreement was accepted, 
"(B) whether any improvement in the state of the 
industry is related to the order or the 
suspension 
agreement, 
"(C) whether the industry is vulnerable to material 
injury if the order is revoked or the suspension agreement 
is terminated, and 
"(D) in an antidimiping proceeding imder section 
751(c), the findings of the administering autiiority regard-
ing duty absorption imder section 751(a)r4). 
"(2) VOLUME.—In evaluating the likely volume of imports 
of the subject merchandise if the order is revoked or the sus-
108 STAT. 4866 
PUBLIC LAW 103-465—DEC. 8, 1994 
pended investigation is terminated, the Commission shaU con-
sider whether the likely voliraie of imports of the subject 
merchandise would be significant if the order is revoked or 
the suspended investigation is terminated, either in absolute 
terms or relative to production or consumption in the United 
States. In so doing, the Commission shall consider all relevant 
economic factors, including— 
"(A) any likely increase in production capacity or exist-
ing unused production capacity in the exporting country, 
"(B) existing inventories of the subject merchandise, 
or likely increases in inventories, 
"(Cf) the existence of barriers to the importation of 
such merchandise into countries other than the United 
States, and 
"(D) the potential for product-shifting if production 
facilities in the foreign country, which can be used to 
produce the subject merchandise, are currently being used 
to produce other products. 
"(3) PRICE.—In evaluating the Ukely price effects of imports 
of the subject merchandise if the order is revoked or the sus-
pended investigation is terminated, the Commission shall con-
sider whether— 
"(A) there is likely to be significant price imderseUing 
by imports of the subject merchandise as compared to 
domestic like products, and 
"(B) imports of the subject merchandise are likely to 
enter the United States at prices that otherwise would 
have a significant depressing or suppressing effect on the 
price of domestic like products. 
(4) IMPACT ON THE INDUSTRY.—In evaluating the likely 
impact of imports of the subject merchandise on tne industry 
if the order is revoked or the suspended investigation is termi-
nated, the Commission shall consider all relevant economic 
factors which are likely to have a bearing on the state of 
the industry in the United States, including, but not limited 
to— 
"(A) Ukely decUnes in output, sales, market share, prof-
its, productivity, return on investments, and utilization 
of capacity, 
(B) ukely negative effects on cash flow, inventories, 
employment, wages, growth, ability to raise capital, and 
investment, and 
"(C) likely negative effects on the existing development 
£md production efforts of the industry, including efforts 
to develop a derivative or more advanced version of the 
domestic like product. 
The Commission shall evaluate all relevant economic factors 
described in this paragraph within the context of the business 
cycle and the conditions of competition that are distinctive 
to the affected industry. 
"(5) BASIS FOR DETERMINATION.—The presence or absence 
of any factor which the Commission is required to consider 
\inder this subsection shall not necessarily give decisive guid-
ance with respect to the Commission's determination of whether 
material injury is likely to continue or reciu* within a reasonably 
foreseeable time if the order is revoked or the suspended inves-
tigation is terminated. In making that determination, tiie 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4867 
Commission shall consider that the effects of revocation or 
termination may not be imminent, but may manifest them-
selves only over a longer period of time. 
"(6) 
MAGNITUDE 
OF 
MARGIN 
OF 
DUMPING 
AND 
NET 
COUNTERVAILABLE SUBSIDY; NATURE OF COUNTERVAILABLE SUB-
SIDY.—In making a determination under section 751 (b) or 
(c), the Commission may consider the magnitude of the mai^n 
of dumping or the magnitude of the net countervailable subsidy. 
If a countervailable subsidy is involved the Commission shall 
consider 
information 
regarding 
the 
nature 
of 
the 
countervailable subsidy and whether the subsidy is a subsidy 
described in Article 3 or 6.1 of the Subsidies Agreement. 
"(7) CUMULATION.—For purposes of this subsection, the 
Commission may cumulatively assess the volume and effect 
of imports of the subject merchandise from all countries with 
respect to which reviews under section 751 (b) or (c) were 
initiated on the same day, if such imports would be likely 
to compete with each other and with domestic like products 
in the United States market. The Commission shall not cumula-
tively assess the volume and effects of imports of the subject 
merchandise in a case in which it determines that such imports 
are likely to have no discernible adverse impact on the domestic 
industry. 
"(8) SPECIAL RULE FOR REGIONAL INDUSTRIES.—In a review 
under section 751 (b) or (c) involving a regional industry, the 
Commission may base its determination on the regional indus-
try defined in the original investigation under this title, another 
region that satisfies tiae criteria established in section 771(4)(C), 
or the United States as a whole. In determining if a regional 
industry anahrsis is appropriate for the determination in the 
review, the Commission shall consider whether the criteria 
estabUshed in section 771(4)(C) are likely to be satisfied if 
the order is revoked or the suspended investigation is 
terminated. 
"(b) DETERMINATION OF LIKELIHOOD OF CONTINUATION OR 
RECURRENCE OF A COUNTERVAILABLE SUBSIDY.— 
"(1) IN GENERAL.—In a review conducted under section 
751(c), the administering authority shall determine whether 
revocation of a coimtervailing duty order or termination of 
a suspended investigation under section 704 would be likely 
to lead to continuation or recurrence of a countervailable sub-
sidy. The administering authority shall consider— 
"(A) the net countervailable subsidy determined in the 
investigation and subsequent reviews, and 
"(B) whether £my change in the program which gave 
^ 
rise to the net countervailable subsidy described in 
subparagraph (A) has occurred that is likely to affect that 
net countervailable subsidy. 
"(2) CONSIDERATION OF OTHER FACTORS.—If good cause is 
shown, the administering authority sh£dl also consider— 
**(A) programs determined to provide countervailable 
subsidies in other investigations or reviews under this title, 
but only to the extent that such programs— 
"(i) can potentially be used by the exporters or 
producers subject to the review under section 751(c), 
and 
108 STAT. 4868 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(ii) did not exist at the time that the countervail-
ing duty order was issued or the suspension agreement 
was accepted, and 
"(B) pro-ams newly alleged to provide countervailable 
subsidies but only to the extent that the administering 
authority makes an affirmative countervailing duty deter-
mination with respect to such programs and with respect 
to the exporters or producers subject to the review. 
"(3) NET COUNTERVAILABLE SUBSIDY.—The administering 
authority 
shall 
provide 
to 
the 
Commission 
the 
net 
countervailable subsidy that is likely to prevail if the order 
is revoked or the suspended investigation is terminated. The 
administering 
authority 
shall 
normally 
choose 
a 
net 
countervailable subsidy that was determined under section 705 
or subsection (a) or (b)(1) of section 751. 
"(4) SPECLfU. RULE.— 
"(A) TREATMENT OF ZERO AND DE MINIMIS RATES.— 
A net countervailable subsidy described in paragraph (1)(A) 
that is zero or de minimis shall not by itself require the 
administering authority to determine that revocation of 
a coimtervailing duty order or termination of a suspended 
investigation would not be likely to lead to continuation 
or reciurence of a countervailable subsidy. 
"(B) APPLICATION OF DE MINIMIS STANDARDS.—For pur-
poses of this paragraph, the administering authority snail 
apply the de minimis standards applicable to reviews con-
ducted under subsections (a) and (b)(1) of section 751. 
"(c) 
DETERMINATION OF LIKELIHOOD OF CONTINUATION OR 
RECURRENCE OF DUMPING.— 
"(1) IN GENERAL.—In a review conducted under section 
751(c), the administering authority shall determine whether 
revocation of an antidumping duty order or termination of 
a suspended investigation under section 734 would be likely 
to lead to continuation or reciurence of sales of the subject 
merchandise at less than fair value. The administering author-
ity shall consider— 
"(A) the weighted average dumping margins deter-
mined in the investigation and subsequent reviews, and 
"(B) the voliune of imports of the subject merchandise 
for the period before ana the period after the issuance 
of the antidumping duty order or acceptance of the suspen-
sion agreement. 
"(2) CONSIDERATION OF OTHER FACTORS.—If good cause is 
shown, the administering authority shall also consider such 
other price, cost, market, or economic factors as it deems 
relevant. 
"(3) MAGNITUDE OF THE MARGIN OF DUMPING.—The admin-
istering authority shall provide to the Commission the mag-
nitude of the margin of^ dumping that is likely to prevail if 
the order is revoked or the suspended investigation is termi-
nated. The administering authority shall normally choose a 
margin that was determined under section 735 or under sub-
section (a) or (b)(1) of section 751. 
"(4) SPECIAL RULE.— 
"(A) TREATMENT OF ZERO OR DE MINIMIS MARGINS.— 
A dimiping margin described in paragraph (1)(A) that is 
zero or de minimis shall not by itself require ihe admin-
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4869 
istering authority to determine that revocation of an 
antidumping duty order or termination of a suspended 
investigation woilld not be hkely to lead to continuation 
or reciurence of sales at less than fair value. 
"(B) APPLICATION OF DE MINIMIS STANDARDS.—For pur-
poses of this paragraph, the administering authority snail 
apply the de minimis standards appHcable to reviews con-
ducted under subsections (a) and (b) of section 751.". 
(b) AFFIRMATIVE DETERMINATIONS BY DIVIDED COMMISSION.— 
Section 771(11) (19 U.S.C. 1677(11)) is amended by inserting ", 
including a determination under section 751," after "determination 
by the Commission". 
(c) CONFORMING AMENDMENT.—The table of contents for titie 
VII is jmiended by inserting after the item relating to section 
751 the following: 
"Sec. 752. Special rules for section 751(b) and 751(c) reviews.". 
SEC. 222. DEFINITIONS. 
(a) INDUSTRY.— 
(1) IN GENERAL.—Subparagraphs (A) and (B) of section 
771(4) (19 U.S.C. 1677(4) (A) and (B)) are amended to read 
as follows: 
"(A) IN GENERAL.—The term Industry' means the 
producers as a whole of a domestic like product, or those 
producers whose collective output of a domestic like product 
constitutes a major proportion of the total domestic produc-
tion of the product. 
"(B) RELATED PARTIES.— 
"(i) If a producer of a domestic Uke product and 
an exporter or importer of the subject merchandise 
are related parties, or if a producer of the domestic 
like product is also an importer of the subject merchan-
dise, the producer may, in appropriate circumstances, 
be excluded fix)m the industry. 
"(ii) For piirposes of clause (i), a producer and 
an exporter or importer shall be considered to be 
related parties, if— 
"(I) the producer directiy or indirectiy controls 
the exporter or importer, 
"(II) the exporter or importer directiy or 
indirectly controls the producer, 
"(III) a third party directiy or indirectiy con-
trols the producer and the exporter or importer, 
or 
"(IV) the producer and the exporter 
or 
importer directiy or indirectiy control a third party 
£ind there is reason to believe that the relationship 
causes the producer to act differentiy than a 
nonrelated producer. 
For piuposes of this subparagraph, a party shall be 
considered to directiy or indirectiy control £uiother 
party if the party is legally or operationally in a posi-
tion to exercise restraint or direction over the other 
party.". 
(2) REGIONAL INDUSTRY.—Section 771(4XC) (19 U.S.C. 
1677(4)(C)) is amended by adding at the end the following 
new sentence: "The term 'regional industry* means the domestic 
108 STAT. 4870 
PUBLIC LAW 103-465—DEC. 8, 1994 
producers within a region who are treated as a sepsirate indus-
try under this subparagraph.". 
(b) IMPACT ON AFFECTED DOMESTIC INDUSTRY.— 
(1) 
IN GENERAL.—Section 
771(7)(C)(iii) 
(19 U.S.C. 
1677(7)(C)(iii)) is amended— 
(A) by striking "and" at the end of subclause (III), 
£ind 
(B) by striking the period at the end of subclause 
(IV) and inserting ", and 
"(V) in a proceeding under subtitle B, the mag-
nitude of the margin of dumping.". 
(2) CAPTIVE PRODUCTION.—Section 771(7)(C) (19 U.S.C. 
1677(7)(C)) is amended by striking clause (iv) and inserting 
the following: 
"(iv) CAPTIVE PRODUCTION.—If domestic producers 
internally transfer significant production of the domes-
tic like product for the production of a downstream 
article and sell significant production of the domestic 
like product in the merchant market, and the Commis-
sion finds that— 
"(I) the domestic like product produced that 
is internally transferred for processing into that 
downstream article does not enter the merchant 
market for the domestic like product, 
"(II) the domestic Uke product is the predomi-
nant material input in the production of that down-
stream article, and 
"(III) the production of the domestic like prod-
uct sold in the merchjint market is not generally 
used in the production of that downstresim article, 
then the Commission, in determining market share 
and the factors affiecting financial performance set forth 
in clause (iii), shall focus primarily on the merchant 
market for the domestic like product.". 
(3) 
TECHNICAL 
CORRECTION.—Section 
771(7)(C)(iii) is 
amended by striking "subparagraph (B)(iii)" and inserting 
"subparagraph (B)(i)ail)''. 
(c) DETERMINATION OF THREAT OF INJURY.—Clauses (i) and 
(ii) of section 771(7)(F) (19 U.S.C. 1677(7)(F) (i) and (ii)) are 
amended to read as follows: 
"(i) IN GENERAL.—In determining whether an 
industry in the United States is threatened with mate-
rial injury by reason of imports (or sales for importa-
tion) of the subject merchandise, the Commission shall 
consider, among other relevant economic factors— 
"(I) if a countervailable subsidy is involved, 
such information as may be presented to it by 
the administering authority as to the nature of 
the subsidy (psurticulsirly as to whether the 
countervailable subsidy is a subsidy described in 
Article 3 or 6.1 of the Subsidies Agreement), and 
whether imports of the subject merchandise are 
likely to increase, 
(II) any existing unused production capacity 
or inuninent, substantial increase in production 
capacity in the exporting country indicating the 
likelihood of substantially increased imports of the 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4871 
subject merchandise into the United States, taking 
into account tibe availabUity of other export mar-
kets to absorb any additional exports, 
"(III) a signincsint rate of mcrease of the vol-
ume or market penetration of imports of the sub-
ject merchandise indicating the UkeUhood of 
substantially increased imports, 
"(IV) whether imports of the subject merchan-
dise are entering at prices that are likely to have 
a significant depressing or suppressing effect on 
domestic prices, and are hkely to increase demand 
for further imports, 
"(V) inventories of the subject merchandise, 
"(VI) the potential for product-shifting if 
production facilities in the forei^ country, wnich 
can be used to produce the subject merchandise, 
are currently being used to produce other products, 
"(VII) in any investigation imder this title 
which involves imports of Doth a raw agricultural 
product 
(within the meaning of paragraph 
(4XEXiv)) and any product processed from such 
raw agricultural product, the likelihood that there 
wiU be increased imports, by reason of product 
shifting, if there is an affirmative determination 
by the Commission under section 705(b)(1) or 
735(b)(1) with respect to either the raw agricul-
tural product or the processed agricultural product 
(but not both), 
"(VIII) the actual and potential negative 
effects on the existing development and production 
efforts of the domestic industry, including efforts 
to develop a derivative or more advanced version 
of the domestic like product, and 
"(IX) any other demonstrable adverse trends 
that indicate the probabiUty that there is likely 
to be material injury by reason of imports (or 
sale for importation) of the subject merchandise 
(whether or not it is actually being imported at 
the time). 
"(ii) BASIS FOR DETERMINATION.—The Commission 
shall consider the factors set forth in clause (i) as 
a whole in making a determination of whether further 
dumped or subsidized imports are imminent and 
whether material injury by reason of imports would 
occur unless an order is issued or a suspension agree-
ment is accepted under this titie. The presence or 
absence of any factor which the Commission is required 
to consider under clause (i) shall not necessarily ^ve 
decisive guidance with respect to the determination. 
Such a determination may not be made on the basis 
of mere conjecture or supposition.", 
(d) NEGLIGIBLE IMPORTS.—Section 771 (19 U.S.C. 1677) is 
amended— 
(1) in paragraph (7) by striking clause (v) of subparagraph 
(C), and 
(2) by adding at the end the following: 
"(24) NEGUGIBLE IMPORTS.— 
108 STAT. 4872 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(A) IN GENERAL.— 
"(i) LESS THAN 3 PERCENT.—^Except as provided 
in clauses (ii) and (iv), imports from a countiy of mer-
chandise corresponding to a domestic Uke product 
identified by the Commission are 'neghgible' if such 
imports account for less than 3 percent of the volimie 
of all such merchandise imported into the United 
States in the most recent 12-month period for which 
data are available that precedes— 
"(I) the filing of the petition under section 
702(b) or 732(b), or 
"(II) the initiation of the investigation, if the 
investigation was initiated under section 702(a) 
or 732(a). 
**(ii) EXCEPTION.—^Imports that would otherwise be 
negligible under clause (i) shall not be negligible if 
the aggregate volimie of imports of the merchandise 
fix)m all countries described in clause (i) with respect 
to which investigations were initiated on the same 
day exceeds 7 percent of the volume of aU such mer-
chandise imported into the United States during the 
appUcable 12-month period. 
"(iii) DETERMINATION OF AGGREGATE VOLUME.—In 
determining aggregate volume under clause (ii) or (iv), 
the Commission snaU not consider imports fix>m any 
coimtry specified in paragraph (7XG)(ii). 
"(iv) NEGUGIBILITY IN THREAT ANALYSIS.—Notwith-
standing clauses (i) and (ii), the Commission shall not 
treat imports as negligible if it determines that there 
is a potential that imports fi:t)m a country described 
in clause (i) will imminently account for more than 
3 percent of the volume of all such merchandise 
imported into the United States, or that the aggregate 
volnmes of imports fit)m all countries described in 
clause (ii) will imminentlv exceed 7 percent of the 
volume of all such merchandise imported into the 
United States. The Commission shall consider such 
imports only for purposes of determining threat of 
material injury. 
"(B) 
NEGLIGIBILITY 
FOR CERTAIN 
COUNTRIES IN 
couNTERVAiUNG DUTY INVESTIGATIONS.—In the case of an 
investigation under section 701, subparagraph (A) shall 
be applied to imports of subject merchandise from develop-
ing countries by substituting *4 percent* for *3 percent' 
in subparagraph (A)(i) and by substituting *9 percent' for 
*7 percent* in subparagraph (A)(ii). 
"(C) COMPUTATION OF IMPORT VOLUMES.—In computing 
import volumes for purposes of subparagraphs (A) and 
(B), the Commission may make reasonable estimates on 
the basis of available statistics. 
"(D) REGIONAL INDUSTRIES.—In an investigation in 
which the Commission makes a regioned industry deter-
mination under paragraph (4)(C), the Commissions exEun-
ination under subparagraphs (A) and (B) shall be based 
upon the volume of subject merchandise exported for sale 
in the regional market in Ueu of the volume of all subject 
merchandise imported into the United States.". 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4873 
(e) 
CUMULATION.—Section 771(7) (19 U.S.C. 1677(7)) is 
amended— 
(1) in subparagraph (F) bv striking clause (iv), and 
(2) by adding at tne end me following: 
(G) 
CUMULATION 
FOR 
DETERMINING 
MATERIAL 
. 
INJURY.— 
**(i) IN GENERAL.—For purposes of clauses (i) and 
(ii) of subparagraph (C), and subject to clause (ii), 
the Commission shall cimiulatively assess the volume 
and effect of imports of the subiect merchandise from 
all countries Avith respect to which— 
"(I) petitions were filed imder section 702(b) 
or 732(b) on the same day, 
"(II) investigations were initiated under sec-
tion 702(a) or 732(a) on the same day, or 
"(III) petitions were filed under section 702(b) 
or 732(b) and investigations were initiated under 
section 702(a) or 732(a) on the same day, 
if such imports compete with each other and with 
domestic like products in the United States market. 
"(ii) 
EXCEPTIONS.—The Commission shall 
not 
cumulatively assess the volume and effect of imports 
under clause (i)— 
"(I) with respect to which the administering 
authority has made a preUminary negative deter-
mination, imless the administering authority sub-
sequently made a final affirmative determination 
with respect to those imports before the Commis-
sion's final determination is made; 
"(II) fix)m any coimtry with respect to which 
the investigation has been terminatea; 
"(III) from any country designated as a bene-
ficiary country imder the Caribbean Basin Eco-
nomic Recovery Act (19 U.S.C. 2701 et seq.) for 
purposes of making a determination with respect 
to tiiat country, except that the volume and effect 
of imports of the subject merchandise fix)m such 
country may be cumulatively assessed 
with 
imports of the subject merchandise fix)m any other 
country designated as such a beneficiary country 
to the extent permitted by clause (i); or 
"(IV) fix)m any country that is a party to an 
agreement with the United States establishing a 
free trade area, which entered into force and effect 
before January 1, 1987, imless the Commission 
determines that a domestic industry is materially 
injured or threatened with material injiuy by rea-
son of imports from that coimtry. 
"(iii) RECORDS IN FINAL INVESTIGATIONS.—In each 
final determination in which it cumulatively assesses 
the volume and effect of imports under clause (i), the 
Commission shall make its determinations based on 
the record compiled in the first investigation in which 
it makes a final determination, except that when the 
administering authority issues its final determination 
in 
a 
subsequently 
completed 
investigation, 
the 
Commission shall permit the parties in the subsequent 
108 STAT. 4874 
PUBLIC LAW 103-465—DEC. 8, 1994 
investigation to submit comments concerning the 
significance of the administering authority's 
final 
determination, and shaU include such comments £uid 
the administering authority's final determination in 
the record for the subsequent investigation. 
"(iv) REGIONAL INDUSTRY DETERMINATIONS.—^In an 
investigation which involves a regional industry, and 
in whicn the Commission decides that the volume and 
effect of imports should be cumulatively assessed under 
this subparagraph, such assessment shall be based 
upon the volimie sind effect of imports into tiie region 
or regions determined by tiie Commission. The provi-
sions of clause (iii) shall apply to such investigations. 
"(H) CUMULATION FOR DETERMINING THREAT OF MATE-
RIAL INJURY.—^To the extent practicable and suWect to 
subparagraph (G)(ii), for purposes of clause (iXIII) and 
(IV) of subparagraph (F), the Commission may cumula-
tively assess the volume and price effects of imports of 
the subject merchandise from all countries with respect 
to which— 
"(i) petitions were filed under section 702(b) or 
732(b) on the same day, 
"(ii) investigations were initiated under section 
702(a) or 732(a) on the same day, or 
"(iii) petitions were filed under section 702(b) or 
732(b) and investigations were initiated under section 
702(a) or 732(a) on the same day, 
if such imports compete with each other and with domestic 
like products in the United States market". 
(f) CONSIDERATION OF POST-PETITION INFORMATION.—Section 
771(7) (19 U.S.C. 1677(7)), is amended by adding at tiie end the 
following: 
"(I) CONSIDERATION OF POST-PETITION INFORMATION.— 
The Commission shall consider whether any change in 
the volimie, price effects, or impact of imports of the subject 
merchandise siuce the filing of the petition in an investiga-
tion under subtitie A or B is related to tiie pendency 
of tiie investigation and, if so, tiie Commission may reduce 
the weight accorded to the data for the period after the 
filing of the petition in making its determination of material 
imury, threat of material injury, or material retardation 
of the establishment of an industry in the United States.". 
(g) INTERESTED PARTY.—Section 771(9) (19 U.S.C. 1677(9)) is 
amended— 
(1) in subparagraph (A), by inserting "producers, exporters, 
or'' before "importers", and 
(2) in subparagraph (B), inserting "or froTD. which such 
merchandise is exported" after "manufactured". 
(h) ORDINARY COURSE OF TRADE.—Section 771(15) (19 U.S.C. 
1677(15)) is amended— 
(1) by striking "merchandise which is the subject of an 
investigation" and inserting "subject merchandise"; and 
(2) by adding at the end the following: "The administering 
authority shall consider the following sales and transactions, 
among others, to be outside the ordinary course of trade: 
"(A) Sales disregarded under section 773(b)(1). 
"(B) Transactions disregarded imder section 773(f)(2).". 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4875 
(i) OTHER DEFINITIONS.— 
(1) IN GENERAL.-—Section 771 (19 U.S.C. 1677), as amended 
by subsection (d), is amended by adding at tiie end tiie 
following: 
"(25) SUBJECT MERCHANDISE.—The term 'subject merchan-
dise' means the class or kind of merchandise that is within 
the scope of sin investigation, a review, a suspension agreement, 
an order under this titie or section 303, or a finding under 
the Antidumping Act, 1921. 
"(26) SECTION 303.—The terms 'section 303' and '303' mean 
section 303 of this Act as in effect on the day before the 
effective date of title II of the Uruguay Round Agreements 
Act. 
"(27) 
SUSPENSION AGREEMENT.—The term 
'suspension 
agreement^ means an agreement described in section 704(b), 
704(c), 734(b), 734(c), or 734(1). 
"(28) EXPORTER OR PRODUCER.—The term 'exporter or pro-
ducer* means the exporter of the subject merchandise, the pro-
ducer of the subject merchandise, or both where appropriate. 
For purposes of section 773, the term 'exporter or producer* 
includes both tiie exporter of the subject merchandise and the 
producer of the same subject merchandise to the extent nec-
essary to accurately calculate the total amount incurred and 
resiUzed for costs, expenses, and profits in connection with 
production and sale of that merchandise. 
"(29) WTO AGREEMENT.—The term 'WTO Agreement' 
means the Agreement defined in section 2(9) of the Uruguay 
Round Agreements Act. 
"(30) 
WTO 
MEMBER AND WTO MEMBER COUNTRY.—The 
terms ^WTO member' and WTO member countiy mean a state, 
or separate customs territory (within the meaning of Article 
XII of the WTO Agreement), with respect to which the United 
States appUes the WTO agreement. 
"(31) GATT 1994.—The term 'GATT 1994' means the Gen-
eral Agreement on Tariffs and Trade annexed to the WTO 
Agreement 
"(32) TRADE REPRESENTATIVE.—The term 'Trade Represent-
ative' means the United States Trade Representative. 
"(33) AFFILIATED PERSONS.—The following persons shall 
be considered to be 'affihated' or 'siffihated persons': 
"(A) Members of a family, including brothers and sis-
ters (whether by the whole or half blood), spouse, ancestors, 
and lineal descendants. 
"(B) Any officer or director of an organization and 
such organization. 
"(C) Partners. 
"(D) Employer and employee. 
"(E) Any person directiy or indirectiy owning, control-
ling, or holding with power to vote, 5 percent or more 
of the outstanding voting stock or shares of any organiza-
tion and such organization. 
"(F) Two or more persons directiy or indirectiy control-
ling, controlled by, or under common control with, any 
person. 
"(G) Any person who controls any other person and 
such other person. 
108 STAT. 4876 
PUBLIC LAW 103-465—DEC. 8, 1994 
For purposes of this paragraph, a person shall be considered 
to control another person if the person is legally or operationally 
in a position to exercise restraint or direction over the otiier 
person. 
"(34) DUMPED; DUMPING.—The terms 'dumped' and *dump-
ing* refer to the sale or likely sale of goods at less than fair 
value.". 
(2) EXPORTER.—Paragraph (13) of section 771 (19 U.S.C. 
1677(13)) is repealed. 
SEC. 223. EXPORT PRICE AND CONSTRUCTED EXPORT PRICE. 
Section 772 (19 U.S.C. 1677a) is amended to read as follows: 
"SEC. 772. EXPORT PRICE AND CONSTRUCTED EXPORT PRICE. 
"(a) EXPORT PRICE.—The term 'export price' means the price 
at which the subject merchandise is first sold (or sigreed to be 
sold) before the date of importation by the producer or exporter 
of the subject merchandise outside of the United States to an 
unaffiliated purchaser in the United States or to an unaffiliated 
purchaser for exportation to the United States, as adjusted under 
subsection (c). 
"(b) CONSTRUCTED 
EXPORT PRICE.—The term 'constructed 
export price' means the price at which the subject merchandise 
is first sold (or agreed to be sold) in the United States before 
or after the date of importation by or for the account of the producer 
or exporter of such merchandise or by a seller siffiliated with the 
producer or exporter, to a purchaser not affiliated with the producer 
or ejcporter, as adjusted under subsections (c) and (d). 
(c) 
ADJUSTMENTS FOR EXPORT 
PRICE AND CONSTRUCTED 
EXPORT PRICE.—The price used to establish export price and con-
structed export price snail be— 
"(1) increased by— 
"(A) when not included in such price, the cost of all 
containers and coverings and all other costs, charges, and 
expenses incident to placing the subject merchandise in 
condition packed ready for snipment to the United States, 
"(B) tne amount of any import duties imposed by the 
country of exportation which have been rebated, or which 
have not been collected, by reason of the exportation of 
the subject merchandise to the United States, and 
"(C) the amount of any countervEuling duty imposed 
on the subject merchandise under subtitle A to offset an 
export subsidy, and 
"(2) reduced by— 
"(A) except as provided in paragraph (1)(C), the 
amount, if any, included in such price, attributable to any 
additional costs, chjirges, or expenses, and United States 
import duties, which are incident to bringing the subject 
merchandise from the original place of snipment in the 
exporting country to the place of delivery in the United 
States, and 
"(B) the amoimt, if included in such price, of any 
export tax, duty, or other charge imposed by the exporting 
country on the exportation of the subject merchandise to 
the United States, other than an export tax, duty, or other 
charge described in section 771(6)(C). 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4877 
**(d) ADDITIONAL ADJUSTMENTS TO CONSTRUCTED EXPORT 
PRICE.—For purposes of this section, the price used to establish 
constructed export price shall also be reduced by— 
"(1) the amount of any of the following expenses generally 
incurred by or for the account of the producer or exporter, 
or the affiliated seller in the United States, in selling the 
subject merchandise (or subject merchandise to which value 
has been added)— 
**(A) conmiissions for seUing the subject merchandise 
in the United States; 
"(B) expenses that result from, and bear a direct rela-
tionship to, the sale, such as credit expenses, guarantees 
and warranties; 
"(C) any seUing expenses that the seller pays on behalf 
of the purchaser; and 
"(D) any selling expenses not deducted under subpara-
graph (A), (B), or (C); 
12) the cost of any fiirtiier manufacture or assembly 
(including additional material and labor), except in cir-
cumstances described in subsection (e); and 
"(3) the profit fillocated to the expenses described in para-
graphs (1) and (2). 
(e) SPECIAL RULE FOR MERCHANDISE WITH VALUE ADDED 
AFTER IMPORTATION.—^Where the subject merchandise is imported 
by a person affihated with the exporter or producer, and the value 
added in the United States by the affihated person is likely to 
exceed substantially tiie value of the subiect merchandise, the 
administering authority^ shall determine tne constructed export 
price for such merchandise by using one of the following prices 
if there is a sufficient quantity of sales to provide a reasonable 
basis for comparison and the administering authority determines 
that the use of such sales is appropriate: 
"(1) The price of identical subject merchandise sold by 
the exporter or producer to an unaffihated person. 
"(2) The price of other subject merchandise sold by the 
exporter or producer to an unaffihated person. 
If there is not a sufficient quantity of sales to provide a reasonable 
basis for comparison under paragraph (1) or (2), or the administer-
ing authority determines that neither of the prices described in 
such p£u*agraphs is appropriate, then the constructed export price 
may be determined on aay other reasonable basis. 
"(f) SPECIAL RULE FOR DETERMINING PROFIT.— 
"(1) IN GENERAL.—For purposes of subsection (d)(3), profit 
shall be an amount determined by multiplying the total actual 
profit by the apphcable percentage. 
"(2) DEFINITIONS.—Forpmposes of this subsection: 
"(A) APPLICABLE PERCENTAGE.—The term 'apphcable 
percentage' means the percentage determined by dividing 
the total United States expenses by the total expenses. 
"(B) TOTAL UNITED STATES EXPENSES.—The term 'total 
United States expenses' means the total expenses described 
in subsection (d) (1) and (2). 
"(C) TOTAL EXPENSES.—The term total expenses' 
means aU expenses in the first of the following categories 
which apphes and which are incurred by or on behalf 
of the foreign producer and foreign escporter of the subject 
merchandise and by or on behalf of the United States 
108 STAT. 4878 
PUBLIC LAW 103-465--DEC. 8, 1994 
seller affiliated with the producer or exporter with respect 
to the production and sale of such merchandise: 
"(i) The expenses incurred with respect to the sub-
ject merchandise sold in the United States and the 
foreign like product sold in the exporting country if 
such expenses were requested by the aoministering 
authority for the purpose of establishing normal value 
and constructed export price. 
**(ii) The expenses incurred with respect to the 
narrowest category of merchandise sold in the United 
States and the exporting country which includes the 
subject merchandise. 
"(iii) The expenses incurred with respect to the 
narrowest category of merchandise sold in all countries 
which includes the subject merchandise. 
"(D) TOTAL ACTUAL PROFIT.—The term total actual 
profit' means the total profit earned by the foreign pro-
ducer, exporter, and affiliated parties described in subptira-
graph (C) with respect to the sale of the s£ime merchandise 
for which total expenses are determined under such 
subparagraph.". 
SEC. 224. NORMAL VALUE. 
Section 773 (19 U.S.C. 1677b) is amended to read as follows: 
"SEC. 773. NORMAL VALUE. 
"(a) DETERMINATION.—In determining under this title whether 
subject merchandise is being, or is likely to be, sold at less than 
fair value, a fair comparison shall be made between the export 
price or constructed escport price and normal value. In order to 
achieve a fair comparison with the export price or constructed 
export price, normal value shall be determined as foUows: 
"(1) DETERMINATION OF NORMAL VALUE.— 
"(A) IN GENERAL.—^The normal value of the subject 
merchandise shall be the price described in subpsiragraph 
(B), at a time reasonably corresponding to the time of 
the sale used to determine the export price or constructed 
export price under section 772(a) or (b). 
"(B) PRICE.—^The price referred to in subparagraph 
(A) is— 
**(i) the price at which the foreign like product 
is first sold (or, in the absence of a sale, offered for 
sale) for consumption in the exporting country, in the 
usual commercial Quantities and in the ordinary course 
of trade and, to the extent practicable, at the same 
level of trade as the export price or constructed export 
price, or 
"(ii) in a case to which subparagraph (C) appUes, 
the price at which the foreign like product is so sold 
(or offered for sale) for consumption in a country other 
than the exporting country or the United States, if— 
"(I) such price is representative, 
"(II) the aggregate quantity (or, if quantitv 
is not appropriate, value) of the foreign like prod-
uct sold by the exporter or producer in such other 
country is 5 percent or more of the aggregate quan-
tity (or value) of the subject merchandise sold in 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4879 
the United States or for export to the United 
States, and 
"(III) the administering authority does not 
determiine that the particular market situation in 
such other country prevents a proper comparison 
with the export price or constructed export price. 
**(C) 
THIRD 
COUNTRY 
SALES.—This 
subparagraph 
appUes when— 
"(i) the foreign like product is not sold (or offered 
for sale) for consumption in the exporting country as 
described in subparagraph (B)(i), 
"(ii) the administering authority determines that 
the aggregate quantity (or, if quantity is not appro-
priate, value) of the foreign like product sold in the 
exporting cotmtry is insufficient to permit a proper 
comparison with the sales of the subject merchandise 
to the United States, or 
"(iii) the particular market situation in the export-
ing country does not permit a proper comparison with 
the export price or constructed export price. 
For purposes or clause (ii), the aggregate quantity (or value) 
of the foreign like product sold in the exportixig country 
shall normally be considered to be insufficient if such quan-
tity (or value) is less than 5 percent of the aggregate 
quantity (or value) of sales of the subject merchandise 
to the United States. 
"(2) FICTITIOUS MARKETS.—No pretended sale or offer for 
sale, and no sale or offer for sale intended to estabUsh a 
fictitious market, shall be taken into account in determining 
normal value. The occurrence of different movements in the 
prices at which different forms of the foreign like product 
are sold (or, in the absence of sales, offered for sale) in the 
exporting country sifter the issuance of an antidumping duty 
order may be considered by the administering authority as 
evidence of the establishment of a fictitious market for the 
foreign like product if the movement in such prices appears 
to reduce the amount by which the normal value exceeds the 
export price (or the constructed export price) of the subject 
merchandise. 
"(3) EXPORTATION FROM AN INTERMEDIATE COUNTRY.— 
Where the subject merchandise is exported to the United States 
fh)m an intermediate; country, normal value shall be determined 
in the intermediate country, except that normal value may 
be determined in the country of origin of the subject merchan-
dise if— 
"(A) the prctducer knew at the time of the sale that 
the subject merclbiandise was destined for esroortation; 
"(B) the subject merchandise is merely transshipped 
through the intermediate coimtry; 
"(C) sales of the foreign like product in the intermediate 
country do not satisfy the conditions of paragraph (1)(C); 
or 
"(D) the foreign like product is not produced in the 
intermediate country. 
"(4) USE OF CONSTRUCTED VALUE.—If the administering 
authority determines that the normal value of the subject mer-
chandise carmot be determined under paragraph (IXBXi), then, 
108 STAT. 4880 
PUBLIC LAW 103-465—DEC. 8, 1994 
notwithstanding paragraph (l)(B)(ii), the normal value of the 
subject merchandise may be the constructed value of that mer-
chandise, as determined under subsection (e). 
"(5) INDIRECT SALES OR OFFERS FOR SALE.—If the foreign 
like product is sold or, in the absence of sales, offered for 
sale through an affiHated party, the prices at which the foreign 
like product is sold (or offered for sale) by such siffiliated party 
may De used in determining normal value. 
"(6) ADJUSTMEhfTS.—^The price described in paragraph 
(IXB) shall be— 
**(A) increased by the cost of all containers and cover-
ings and all other costs, charges, and expenses incident 
to placing the subject merchandise in condition packed 
reaay for shipment to the United States; 
(B) reduced by— 
"(i) when included in the price described in para-
graph (1)(B), the cost of all containers and coverings 
ana all other costs, charges, and expenses incident 
to placing the foreign like product in condition packed 
ready for shipment to the place of deHvery to the 
purchaser, 
"(ii) the amount, if any, included in the price 
described in paragraph (1)(B), attributable to any addi-
tional costs, charges, and expenses incident to bringing 
the foreign like product from the original place of snip-
ment to the place of dehvery to the purchaser, and 
"(iii) the amount of any taxes imposed directly 
upon the foreign like product or components thereof 
wnich have been rebated, or which have not been col-
lected, on the subject merchandise, but only to the 
extent that such taxes are added to or included in 
the price of the foreign Hke product, and 
"(C) increased or decreased by the amount of any dif-
ference (or lack thereof) between the export price or con-
structed export price and the price described in paragraph 
(1)(B) (other than a difference for which allowance is other-
wise provided under this section) that is established to 
the satisfaction of the administering authority to be whoUy 
or partly due to— 
"(i) the fact that the quantities in which the subject 
merchandise is sold or agreed to be sold to the United 
States are greater than or less than the quantities 
in which the foreign like product is sold, agreed to 
be sold, or offere4 for sale, 
**(ii) the fact that merchandise described in 
subparagraph (B) or (C) of section 771(16) is used 
in determining normal value, or 
"(iii) other differences in the circumstances of sale. 
"(7) ADDITIONAL ADJUSTMENTS.— 
"(A) LEVEL OF TRADE.—^The price described in para-
graph (1)(B) shall also be increased or decreased to make 
due allowance for any difference (or lack thereof) between 
the export price or constructed export price and the price 
described in paragraph (1)(B) (other than a difference for 
which allowance is otherwise made under this section) 
that is shown to be wholly or partly due to a difference 
in level of trade between the export price or constructed 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4881 
export price and normal value, if the difference in level 
of trade— 
"(i) involves the performance of different selling 
activities; and 
"(ii) is demonstrated to affect price comparability, 
based on a pattern of consistent price differences 
between sales at different levels of trade in the country 
in which normal value is determined. 
In a case described in the preceding sentence, the amount 
of the adjustment shall be based on the price differences 
between the two levels of trade in the country in which 
normal value is determined. 
"(B) CONSTRUCTED EXPORT PRICE OFFSET.^When nor-
mal value is established at a level of trade which con-
stitutes a more advanced stage of distribution than the 
level of trade of the constructed export price, but the data 
available do not provide an appropriate basis to determine 
under subparjigraph (AXii) a level of trade adjustment, 
normal value snail be reduced by the amount of indirect 
selling expenses inciured in the country in which normal 
value is determined on sales of the foreign like product 
but not more than the amount of such expenses for which 
a deduction is made under section 772(d)(IXD). 
"(8) ADJUSTMENTS TO CONSTRUCTED VALUE.—Constructed 
value as determined under subsection (e), may be adjusted, 
as appropriate, pursuant to this subsection. 
"(b) SALES AT LESS THAN COST OF PRODUCTION.— 
"(1) DETERMINATION; SALES DISREGARDED.—Whenever the 
administering authority has reasonable grounds to beUeve or 
suspect that sales of me foreign like product under consider-
ation for the detenmnation of normal value have been made 
at prices which represent less than the cost of production 
of mat product, the administering authori^ shall determine 
whether, in fact, such sales were made at less than the cost 
of production. If the administering authority determines that 
sales made at less than the cost of production— 
"(A) have been made within an extended period of 
time in substantial quantities, and 
"(B) were not at prices which permit recovery of all 
costs within a reasonable period of time, 
such sales may be disregarded in the determination of normal 
value. Whenever such sales are disregarded, normal value shall 
be based on the remaining sales of the foreign like product 
in the ordinary course of trade. If no sales made in the ordinary 
course of traae remain, the normal value shall be based on 
the constructed value of the merchandise. 
"(2) DEFINITIONS AND SPECIAL RULES.—For pmposes of this 
subsection— 
"(A) REASONABLE GROUNDS TO BELIEVE OR SUSPECT.— 
There are reasonable grounds to beUeve or suspect that 
sales of the foreign like product were made at prices that 
are less than the cost of production of the product, if— 
"(i) in an investigation initiated imder section 732 
or a review conducted under section 751, an interested 
party described in subparagraph (C), (D), (E), (F), or 
(G) of section 771(9) provides information, based upon 
observed prices or constructed prices or costs, mat 
108 STAT. 4882 
PUBLIC LAW 103-465—DEC. 8, 1994 
sales of the foreign like product under consideration 
for the determination of normal value have been made 
at prices which represent less than the cost of produc-
tion of the product; or 
"(ii) in a review conducted under section 751 
involving a specific exporter, the administering author-
ity disregarded some or all of the exporter's sales 
pursuant to paragraph (1) in the investigation or if 
a review has been completed, in the most recently 
completed review. 
"(B) EXTENDED PERIOD OF TIME.—The term 'extended 
period of time' means a period that is normally 1 year, 
but not less than 6 months. 
"(C) SUBSTANTIAL QUANTITIES.—Sales made at prices 
below the cost of production have been made in substantial 
quantities if— 
**(i) the volume of such, sales represents 20 percent 
or more of the volume of sales under consideration 
for the determination of normal value, or 
"(ii) the weighted average per unit price of the 
sales imder consideration for the determination of nor-
mal value is less than the weighted average per unit 
cost of production for such sales. 
"(D) RECOVERY OF COSTS.—If prices which are below 
the per unit cost of production at the time of sale are 
above the weighted average per unit cost of production 
for the period of investigation or review, such prices shall 
be considered to providfe for recovery of costs within a 
reasonable period of time. 
"(3) CALCULATION OF COST OF PRODUCTION.—For pmposes 
of this subtitle, the cost of production shall be an amount 
equal to the simi of— 
"(A) the cost of materials and of &brication or other 
processing of any kind employed in producing the foreign 
like product, during a period which would ordinarily permit 
the production of uiat foreign like product in the ordinary 
course of business; 
"(B) an amount for selling, general, and administrative 
expenses based on actual data pertaining to production 
and sales of the foreign like product by the exporter in 
question; and 
**(C) the cost of all containers and coverings of whatever 
nature, and all other expenses incidental to placing the 
foreign like product in condition packed ready for shipment. 
For purposes of subparagraph (A), if the normal value is based 
on me price of the foreign like product sold for consumption 
in a country other than the exporting country, the cost of 
materials shall be determined without regard to any internal 
tax in the exporting country imposed on such materials or 
their disposition which are remitted or refunded 
upon 
exportation. 
*(c) NONMARKET ECONOMY COUNTRIES.— 
"(1) IN GENERAL.—If— 
"(A) the subject merchandise is exported from a 
nonmarket economy country, and 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4883 
"(B) the administering authority finds that available 
information does not permit the normal value of the subject 
merclmndise to be determined under subsection (a), 
the administering authority shall determine the normal value 
of the subject merchandise on the basis of the value of the 
factors of production utilized in producing the merchandise 
and to which shall be added an amount for general expenses 
and profit plus the cost of containers, coverings, and other 
expenses. Except as provided in paragraph (2), the valuation 
of the factors oi production shall be based on the best available 
information regsirding the values of such factors in a market 
economy country or countries considered to be appropriate by 
the administering authority. 
"(2) EXCEPTION.—If the administering authority finds that 
the available information is inadequate for purposes of deter-
mining the normal value of subject merchandise under para-
graph (1), the administering authority shall determine the 
normal value on the basis of the price at which merchandise 
that is— 
"(A) comparable to the subject merchandise, and 
**(B) produced in one or more market economy countries 
that are at a level of economic development comparable 
to that of the nonmarket economy country, 
is sold in other coimtries, including the United States. 
"(3) FACTORS OF PRODUCTION.—For puiposes of paragraph 
(1), the factors of production utilized in producing merchandise 
include, but are not Limited to— 
**(A) hours of labor required, 
"(B) quantities of raw materials employed, 
"(C) amounts of energy and other utilities consiuned, 
and 
"(D) representative capital cost, including depreciation. 
"(4) VALUATION OF FACTORS OF PRODUCTION.—llie admin-
istering authority, in valuing factors of production under para-
graph (1), shall utUize, to the extent possible, the prices or 
costs of factors of production in one or more market economy 
countries that are— 
"(A) at a level of economic development comparable 
to that of the nonmarket economy country, and 
"(B) significant producers of comparable merchandise. 
"(d) SPECIAL RULE FOR CERTAIN MULTINATIONAL CORPORA-
TIONS.—^Whenever, in the course of an investigation under this 
title, the administering authority determines that— 
"(1) subject merchandise exported to the United States 
is being produced in faciHties which are owned or controlled, 
directly or indirectly, by a person, firm, or corporation which 
also owns or controls, directly or indirectly, other faciHties 
for the production of the foreign like product which are located 
in another country or countries, 
"(2) subsection (a)(lXC) appUes, and 
"(3) the normal value of tne foreign like product produced 
in one or more of the facilities outside the exporting country 
is higher than the normal vsdue of the foreign Uke product 
produced in the facilities located in tlie exporting country, 
it shall determine the normal value of the subject merchandise 
by reference to the normjil vsdue at which the foreign like product 
is sold in substantial quantities fix)m one or more facilities outside 
108 STAT. 4884 
PUBLIC LAW 103-465—DEC. 8, 1994 
the exporting country. The administering authority, in making any 
determination under this paragraph, shall make adjustments for 
the difference between the cost of production (including taxes, labor, 
materials, and overhead) of the foreign like product produced in 
facilities outside the exporting country and costs of production 
of the foreign like product produced in facilities in the exporting 
country, if such differences are demonstrated to its satisfaction. 
For purposes of this subsection, in determining the normal value 
of the foreign like product produced in a country outside of the 
exporting country, the administering authority shall determine its 
price at the time of exportation from tlie exporting coimtry and 
shall make any adjustments required by subsection (a) for the 
cost of all containers and coverings and all other costs, charges, 
and expenses incident to placing the merchandise in condition 
packed ready for shipment to the United States by reference to 
such costs in the exporting country. 
"(e) CONSTRUCTED VALUE.—For purposes of this tide, the con-
structed value of imported merchanoise shall be an amount equal 
to the sum of— 
**(1) the cost of materials and fabrication or other processing 
of any kind employed in producing the merchandise, during 
a period which would ordinarily permit the production of the 
merchandise in the ordinary course of business; 
"(2)(A) the actual amounts incurred and realized by the 
specific exporter or producer being examined in the investiga-
tion or review for selling, general, £uid administrative expenses, 
and for profits, in connection with the production and sale 
of a forei^ like product, in the ordinary course of trade, for 
consiunption in the foreign country, or 
**(B) if actUEd data are not available with respect to the 
amounts described in subparagraph (A), then— 
"(i) the actual amounts incurred and reahzed by the 
specific exporter or producer being examined in the inves-
tigation or review for seUing, general, and administrative 
expenses, and for profits, in connection with the production 
and sale, for consumption in the foreign country, of mer-
chanchse that is in the same general category oi products 
as the subject merchandise, 
"(ii) the weighted average of the actual amoimts 
incurred and realized by exporters or producers that are 
subject to the investigation or review (other than the 
exporter or producer described in clause (i)) for selling, 
general, and administrative expenses, and for profits, in 
connection with the production and sale of a foreign like 
product, in the ordinary course of trade, for consumption 
m the foreign country, or 
"(iii) the amounts incurred and realized for selling, 
genered, and administrative expenses, and for profits, based 
on any other reasonable method, except that the amount 
allowed for profit may not exceed the amount normally 
realized by exporters or producers (other than the exporter 
or producer described in clause (i)) in connection with the 
sale, for consumption in the foreign country, of merchandise 
that is in tlie same general category of products as the 
subject merchandise; and 
"(3) the cost of all containers and coverings of whatever 
nature, and all other expenses incidental to placing the subject 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4885 
merchandise in condition packed ready for shipment to the 
United States. 
For purposes of paragraph (1), the cost of materials shall be deter-
mined without regard t» any internal tsix in the exporting country 
imposed on such materials or their disposition which are remitted 
or refunded upon exportation of the subject merchandise produced 
fix)m such materials. 
"(f) SPECIAL RULES FOR CALCULATION OF COST OF PRODUCTION 
AND FOR CALCULATION OF CONSTRUCTED VALUE.—For purposes of 
subsections (b) and (e).— 
"(1) COSTS.— 
"(A) IN GENERAL.—Costs shall normally be csilculated 
based on the records of the exporter or producer of the 
merchandise, if such records are kept in accordance with 
the generally accepted accounting principles of the export-
ing country (or the producing country, where appropriate) 
and reasonably reflect the costs associated with the produc-
tion and sale of the merchandise. The administering 
authority shall consider all available evidence on the proper 
allocation of costs, including that which is made availaole 
by the exporter or producer on a timely basis, if such 
allocations have been historically used by the exporter or 
producer, 
in 
particular 
for 
estabUshing 
appropriate 
amortization and depreciation periods, and allowances for 
capital expenditures Etnd other development costs. 
"(B) NONRECURRING COSTS.—Costs shall be adjusted 
appropriately for those nonrecurring costs that benefit cur-
rent or future production, or both. 
"(C) STARTUP COSTS.— 
"(i) IN GENERAL.—Costs shall be adjusted appro-
priately for circumstances in which costs incurred dur-
ing the time period covered by the investigation or 
review are jaiFected by startup operations. 
"(ii) STARTUP OPERATIONS.—A4justments shall be 
made for startup operations only where— 
"(I) a producer is using new production faciU-
ties or producing a new product that requires 
substantial additional investment, and 
"(II) production levels are limited by technical 
factors associated with the initial phase of commer-
cial production. 
For purposes of subclause (II), the initial phase of 
commercial production ends at the end of the startup 
period. In determining whether commercial production 
levels have been achieved, the administering authority 
shall consider factors unrelated to startup operations 
that might affect the volume of production processed, 
such as demand, seasonaUty, or business cycles. 
"(iii) ADJUSTMENT FOR STARTUP OPERATIONS.—The 
adiustment for startup operations shall be made by 
substituting the unit production costs incurred with 
respect to me merchandise at the end of the startup 
period for the unit production costs incurred during 
the startup period. If the startup period extends beyond 
the period of the investigation or review under this 
titie, the administering authority shall use the most 
recent cost of production data that it reasonably can 
108 STAT. 4886 
PUBLIC LAW 103-465—DEC. 8, 1994 
obtain, analyze, and verify without delaying the timely 
completion of the investigation or review. For purposes 
of this subparagraph, the startup period ends at the 
point at wmch tne level of commercial production that 
is characteristic of the merchandise, producer, or indus-
try concerned is achieved. 
"(2) TRANSACTIONS DISREGARDED.—A transaction directly 
or indirectly between affiliated persons may be disregarded 
if, in the case of any element of value required to be considered, 
the amount representing that element does not fairly reflect 
the amount usually reflected in sales of merchandise under 
consideration in the msirket under consideration. If a trans-
action is disreg£irded under the preceding sentence and no 
other transactions are available for consideration, the deter-
mination of the amount shsiU be based on the information 
available as to what the amount would have been if the trans-
action had occurred between persons who are not affiliated. 
"(3) MAJOR INPUT RULE.—^If, in the case of a transaction 
between affiliated persons involving the production by one of 
such persons of a major input to the merchandise, the admin-
istering authority has resisonable grounds to beUeve or suspect 
that an amount represented as the value of such input is 
less than the cost of production of such input, then the admin-
istering authority may determine the value of the major input 
on the basis of the information available regarding such cost 
of production, if such cost is greater than the amount that 
would be determined for such input imder paragraph (2).". 
SEC. 225. CURRENCY CONVERSION. 
(a) IN GENERAL.—Subtitie D of titie VII (19 U.S.C. 1677 et 
seq.) is amended by inserting after section 773 the following new 
section: 
19 u s e 1677b-l. 
"SEC. 773A. CURRENCY CONVERSION. 
"(a) IN GENERAL.—In an antidumping proceeding imder this 
titie, the administering authority shall convert foreign currencies 
into United States dollars using the exchange rate in effect on 
the date of sale of the subject merchandise, except that, if it is 
estabUshed that a currency transaction on forward markets is 
directiy Hnked to an export sale under consideration, the exchange 
rate specified with respect to such currency in the forward sale 
agreement shall be used to convert the foreign currency. Fluctua-
tions in exchange rates shall be ignored. 
"(b) 
SUSTAINED MOVEMENT IN FOREIGN CURRENCY VALUE,— 
In an investigation under subtitie B, if there is a sustained move-
ment in the value of the foreign currency relative to the United 
States dollar, the administering authority shall allow exporters 
at least 60 days to adjust their export prices to reflect such sus-
tained movement". 
(b) CONFORMING AMENDMENT.—The table of contents for titie 
VII is amended by inserting after the item relating to section 
773 the following new item: 
"Sec. 773A. Cvirrency conversion.". 
SEC. 226. PROPRIETARY AND NONPROPRIETARY INFORMATION. 
(a) PROPRIETARY STATUS MAINTAINED.— 
(1) IN GENERAL.—Section 777(b)(1) (19 U.S.C. 1677f(b)(l)) 
is amended to read as follows: 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4887 
*
•
( 1) PROPRIETARY STATUS MAINTAINED.— 
"(A) IN GENERAL.—Except as provided in subsection 
(a)(4)(A) and subsection (c), information submitted to the 
administering authority or the Commission which is des-
ignated as proprietaiy by the person submitting the 
information shsLu not be disclosed to any person without 
the consent of the person submitting the information, other 
than— 
"(i) to ian officer or employee of the administerine 
authority or the Commission who is directly concerned 
with carrying out the iuvestigation in connection with 
which the information is submitted or any review 
under this title covering the same subject merchandise, 
or 
"(ii) to an officer or employee of the United States 
Customs Service who is directly involved in conducting 
an investigation regarding fraud under this titie. 
**(B) ADDITIONAL REQUIREMENTS.—The administering 
authority and the Commission shall require that informa-
tion for which proprietary treatment is requested be accom-
panied by— 
(i) either— 
"(I) a non-proprietary summary in sufficient 
detail to permit a reasonable imderstanding of the 
substance of the information submitted m con-
fidence, or 
"(II) a statement that the information is not 
susceptible to summary accompanied by a state-
ment of the reEisons in support of the contention, 
and 
"(ii) either— 
"(I) a statement which permits the administer-
ing authority or the Commission to release under 
administrative protective order, in accordance with 
subsection (c), the information submitted in con-
fidence, or 
"(II) a statement to the administering author-
ity or the Commission that the business propri-
etary information is of a type that should not 
be 
released 
under 
administrative 
protective 
order.". 
(2) 
SECTION 751 REVIEWS.—Section 777(b) (19 U.S.C. 
1677f(b)) is amended by adding at the end the following: 
"(3) SECTION 751 REVIEWS.—Notwithstanding the provisions 
of paragraph (1), information submitted to the administering 
authority or the Commission in connection with a review under 
section 751(b) or 751(c) which is designated as proprietary 
by the person submitting the information may, if the review 
results m the revocation of an order or finding (or termination 
of a suspended investigation) under section 751(d), be used 
by the agency to which me information was originally submitted 
in any mvestigation initiated within 2 years after the date 
of the revocation or termination pursuant to a petition covering 
the same subject merchandise.". 
(b) 
UNWARRANTED 
PROPRIETARY 
DESIGNATION.—Section 
777(b)(2) (19 U.S.C. 1677f(b)(2)) is amended by adding at the end 
the following new sentence: "In a case in which the administering 
publication. 
108 STAT. 4888 
PUBLIC LAW 103-465—DEC. 8, 1994 
authority or the Commission returns the information to the person 
submitting it, the person may thereafter submit other material 
concerning the subject matter of the returned information if the 
submission is made within the time otherwise provided for submit-
ting such material.". 
SEC. 227. OPPORTUNITY FOR COMMENT BY CONSUMERS AND INDUS-
TRIAL USERS. 
Section 777 (19 U.S.C. 1677f) is amended by adding at the 
end the following new subsection: 
"(h) OPPORTUNITY FOR COMMENT BY CONSUMERS AND INDUS-
TRIAL USERS.—The administering authority and the Conunission 
shsiU provide an opportunity for industrial users of the subject 
merchandise and, £f the merchandise is sold at the retail level, 
for representative consmner organizations, to submit relevant 
information to the administering authority concerning dumping 
or a countervailable subsidy, and to the Commission concerning 
material injury by reason of dumped or subsidized imports.". 
SEC. 228. PUBUC NOTICE AND EXPLANATION OF DETERMINATIONS. 
Section 777 (19 U.S.C. 1677f), as amended by section 227, 
is amended by adding at the end the following: 
"(i) PUBLICATION OF DETERMINATIONS; REQUIREMENTS FOR 
FINAL DETERMINATIONS.— 
Federal 
"(1) j ^ GENERAL.—Whenever the administering authority 
^fif^fj^^ 
makes a determination imder section 702 or 732 whether to 
initiate an investigation, or the administering authority or the 
Conmiission makes a preliminary determination under section 
703 or 733, a final determination under section 705 or section 
735, a preliminary or final determination in a review under 
section 751, a determination to suspend an investigation under 
this title, or a determination under section 753, the administer-
ing authority or the Commission, as the case may be, shall 
ptibUsh the facts and conclusions supporting that determina-
tion, and shall pubUsh notice of that determination in the 
Federal Register. 
**(2) CONTENTS OF NOTICE OR DETERMINATION.—The notice 
or determination pubUshed under paragraph (1) shall include, 
to the extent applicable— 
"(A) in the case of a determination of the administering 
authority— 
"(i) the names of the exporters or producers of 
the subject merchandise or, when providing such 
names is impracticable, the countries exporting the 
subject merch£indise to the United States, 
"(ii) a description of the subject merchandise that 
is sufficient to identify the subject merchandise for 
customs purposes, 
"(iiiXl) with respect to a determination in an inves-
tigation under subtitle A or section 753 or in a review 
of a coimtervailing duty order, the amount of the 
coimtervailable subsidy estabUshed and a full expla-
nation of the methodology used in estabhshing the 
amount, and 
"(II) with respect to a determination in an inves-
tigation imder subtitle B or in a review of an antidump-
ing duty order, the weighted average dumping margins 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4889 
established and a full explaBation of the methodology 
used in establislung such margins, and 
"(iv) the primary reasons for the determination; 
and 
"(B) in the case of a determination of the Commission— 
"(i) considerations relevant to the determination 
of injury, and 
(ii; the primary reasons for the determination. 
"(3) 
ADDITIONAI. REQUIREMENTS FOR FINAL DETERMINA-
TIONS.—In addition to the requirements set forth in paragraph 
( 2 ) -
"(A) the admimstering authority shall include in a 
final determination described in paragraph (1) an expla-
nation of the basis for its determination that addresses 
relevant arguments, made by interested parties who are 
parties to me investigation or review (as the case may 
be), concerning the establishment of dumping or a 
countervailable subsidy, or the suspension of the investiga-
tion, with respect to which the determination is made; 
and 
i 
"(B) the Conmiission shall include in a final determina-
tion of injury an explanation of the basis for its determina-
tion that addresses relevant arguments that are made by 
' interested parties who are parties to the investigation or 
review (as the case may be) concerning volume, price 
effects, and impact on the iudustry of imports of the subject 
merchandise.". 
SEC. 229. SAMPLING 
AND 
AVERAGING; 
DETERMINATION 
OF 
WEIGHTED AVERAGE DUMPING MARGIN. 
(a) IN GENERAL.—Section 777A (19 U.S.C. 1677f-l) 
is 
amended to read as follows: 
-SEC. 777A. SAMPLING 
AND 
AVERAGING; 
DETERMINATION 
OF 
WEIGHTED AVERAGE DUMPING MARGIN. 
"(a) IN GENERAL.—For purposes of determining the export price 
(or constructed export price) under section 772 or the normal value 
under section 773, and in carrying out reviews under section 751, 
tibie administering authority may— 
"(1) use averaging and statistically vaHd samples, if there 
is a significant volume of sales of tiie subject merchandise 
or a significant number or types of products, and 
"(2) decUne to take into account adjustments which sire 
iosignificant in relation to the price or value of the merchandise. 
"(b) SELECTION OF AVERAGES AND SAMPLES.—^The authority 
to select averages and statistically vaHd samples shall rest exclu-
sively with the administciring authority. The administering author-
ity shall, to the greatest extent possible, consult with the exporters 
and producers regarding the method to be used to select exporters, 
producers, or types of products under this section. 
"(c) DETERMINATION OF DUMPING MARGIN.— 
"(1) GENERAL RULE.—In determining weighted average 
dimiping margins under section 733(d), 735(c), or 761(a), the 
admimstering 
authority 
shall 
determine 
the 
individual 
weighted average dumping margin for each known exporter 
and producer of the subject merchandise. 
(2) EXCEPTION.—If it is not practicable to make individual 
weighted average dumping margin determinations under para-
79-194 0—95—11 : QL 3 Part 6 
108 STAT. 4890 
PUBLIC LAW 103-465—DEC. 8, 1994 
^ a p h (1) because of the large number of exporters or producers 
involved in the investigation or review, the administering 
authority may determine the weighted average dumping mar-
gins for a reasonable number of exporters or producers by 
limiting its examination to— 
**(A) a sample of exporters, producers, or types of prod-
ucts that is statistically v£ilid based on the information 
available to the administering authority at the time of 
selection, or 
*(B) esroorters and producers accounting for the lai^est 
volume of tne subject merchandise from the exporting coun-
try that can be reasonably examined. 
**(d) DETERMINATION OF LESS THAN FAIR VALUE.— 
"(1) INVESTIGATIONS.— 
**(A) IN GENERAL.—In an investigation under subtitie 
B, the administering authority shall determine whether 
the subject merchandise is being sold in the United States 
at less than fair value— 
"(i) by comparing the weighted average of the nor-
mal values to the weighted average of the export prices 
(and constructed export prices) for compjirable mer-
chandise, or 
**(ii) by comparing the normal values of individual 
transactions to the export prices (or constructed export 
prices) of individual transactions for comparable mer-
chandise. 
**(B) EXCEPTION.—^The administering authority may 
determine whether the subject merchandise is being sold 
in the United States at less than fair value by comparing 
the weighted average of the normal values to the export 
prices (or constructed export prices) of individual trans-
actions for comparable merchandise, if— 
**(i) there is a pattern of export prices (or con-
structed export prices) for comparable merchandise 
that differ sigmficantiy among purchasers, regions, or 
periods of time, and 
**(ii) the administering authority explains why such 
differences cannot be taken into account using a 
method described in paragraph (lXA)(i) or (ii). 
"(2) REVIEWS.—In a review under section 751, when 
comparing export prices (or constructed export prices) of 
individual transactions to tiie weighted average price of sales 
of the foreign like product, the administering authority shall 
limit its averaging of prices to a period not exceeding the 
calendar month that corresponds most closely to the calendar 
month of the individual export sale.**. 
(b) DUMPING MARGIN; WEIGHTED AVERAGE DUMPING MARGIN.— 
Section 771 (19 U.S.C. 1677), as amended by section 222(i), is 
amended by adding at the end tiie following new paragraph: 
"(35) DUMPING MARGIN; WEIGHTED AVERAGE DUMPING MAR-
GIN.— 
"(A) DUMPING MARGIN.—^The term 'dumping margin' 
means the amount by which the normal value exceeds 
the export price or constructed export price of the subject 
merchandise. 
"(B) WEIGHTED AVERAGE DUMPING MARGIN.—The term 
^weighted average dumping margin' is the percentage deter-
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4891 
mined by dividing the aggregate dumping margins deter-
mined for a specific exporter or producer by the aggregate 
export prices and constructed export prices of such exporter 
or producer. 
"(C) MAGNITUDE OF THE MARGIN OF DUMPING.—The 
magnitude of the msirgin of dumping used by the Commis-
sion shall be— 
"(i) in imaking a preUminary determination under 
section 733(a) in an investigation (including any inves-
tigation in which the 
Commission 
cumulatively 
assesses the volume and effect of imports under para-
graph (7XG)(i)), the dumping margin or margins pub-
lished by the administering authority in its notice of 
initiation of the investigation; 
"(ii) in making a final determination under section 
735(b), the dumping margin or mareins most recently 
published by the administering authority prior to the 
closing of the Conunission's administrative record; 
"(lii) in a review imder section 751(b)(2), the most 
recent dumping margin or margins determined by the 
administering authority under section 752(c)(3), if any, 
or under section 733(b) or 735(a); and 
"(iv) in a review under section 751(c), the dumping 
margin or margins determined by the administering 
authority under section 752(cX3).''. 
SEC. 230. ANncmCUMVENnON. 
(a) IN GENERAL.—Subsections (a) and (b) of section 781 (19 
U.S.C. 1677J (a) and (b)) are amended to read as foUows: 
"(a) MERCHANDISE COMPLETED OR ASSEMBLED IN THE UNITED 
STATES.— 
"(1) IN GENERAL.—If— 
"(A) merchandise sold in the United States is of the 
same class or kind as any other merchandise that is the 
subject of— 
"(i) £ui antidumping duty order issued under sec-
tion 736, 
*(ii) a finding issued under the Antidumping Act, 
1921, or 
"(iii) a countervailing duty order issued under sec-
tion 706 or section 303, 
"(B) such merchandise sold in the United States is 
completed or assembled in the United States from parts 
or components produced in the foreign country with respect 
to which such order or finding applies, 
**(C) the process of assembly or completion in the 
United States is minor or insignificant, and 
**(D) the vjdue of the parts or components referred 
to in subparagraph (B) is a significant portion of the total 
value of the merchandise, 
the administering authority, after taking into account any 
advice provided by the Commission under subsection (e), may 
include within the scope of such order or finding the imported 
parts or components referred to in subparagrapn (B) that are 
used in the completion or assembly of the merchandise in 
the United States at any time such order or finding is in 
effect 
108 STAT. 4892 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(2) 
DETERMINATION OF WHETHER PROCESS IS MINOR OR 
INSIGNIFICANT.—In determining whether the process of assem-
bly or completion is itiinor or insignificant under psiragraph 
(IXC), the administering authority shall take into account— 
"(A) the level of investment in the United States, 
"(B) the level of research and development in the 
United States, 
"(C) the nature of the production process in the United 
States, 
"(D) the extent of production faciUties in the United 
States, and 
**(E) whether the value of the processing performed 
in the United States represents a small proportion of the 
value of the merchandise sold in the United States. 
"(3) FACTORS TO CONSIDER.—In determining whether to 
include narts or components in a countervaiHng or antidumping 
duty order or finding iinder paragraph (1), the administering 
autnority shall take into account such factors £is— 
"(A) the pattern of trade, includiag sourcing patterns, 
**(B) whether the manufacturer or exporter of the parts 
or components is affihated with the person who assembles 
or completes the merchandise sold in the United States 
fi:x)m the parts or components produced in the foreign coun-
try with respect to which the order or finding described 
in paragraph (1) appUes, and 
"(C) whether imports into the United States of the 
parts or coniponents produced in such foreign country have 
mcreased after the initiation of the investigation which 
resulted in the issuance of such order or finding. 
"(b) MERCHANDISE COMPLETED OR ASSEMBLED IN OTHER FOR-
EIGN COUNTRIES.— 
"(1) IN GENERAL.—If— 
"(A) merchandise imported into the United States is 
of the same class or kind as any merchandise produced 
in a foreign country that is the subject of— 
^i) an antidumping duty order issued under sec-
tion 736, 
"(ii) a finding issued under the Antidumping Act, 
1921, or 
"(iii) a countervailing duty order issued under sec-
tion 706 or section 303, 
"(B) before importation into the United States, such 
imported merchandise is completed or assembled in another 
foreign country fix)m merchandise which— 
"(i) is subject to such order or finding, or 
"(ii) is produced in the foreign counfiy with respect 
to which such order or finding appUes, 
"(C) the process of assembly or completion in the for-
eign country referred to in subparagrapn (B) is minor or 
insignificant, 
"(D) the value of the merchandise produced in the 
foreign countiy to which the antidumping duty order 
appHes is a significant portion of the total value of the 
merchandise exported to the United States, and 
"(E) the administering authority determines that action 
is appropriate under this paragraph to prevent evasion 
of such order or finding, 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4893 
the administering authority, after taking into account any 
advice provided by the Commission under subsection (e), may 
include such imported merchandise within the scope of such 
order or finding at any time such order or finding is in effect. 
"(2) DETERMINATION OF WHETHER PROCESS IS MINOR OR 
INSIGNIFICANT.—In determining whether the process of assem-
bly or completion is minor or insignificant under paragraph 
(1)(C), the administering authority shall take into account— 
"(A) the level of investment in the foreign country, 
"(B) the level of research and development in the for-
eign country, 
"(C) the nature of the production process in the foreign 
• 
country, 
"(D) the extent of production facilities in the foreign 
country, and 
"(E) whether the value of the processing performed 
in the foreign country represents a small proportion of 
the value of the merchandise imported into the United 
States. 
"(3) FACTORS TO CONSIDER.—In determining whether to 
include merchandise assembled or completed in a foreign coun-
try in a countervailing duty order or an antidumping duty 
order or finding under paragraph (1), the administering author-
ity shall take into account such factors as— 
"(A) the pattern of trade, including sourcing patterns, 
"(B) whether the manufacturer or exporter of the mer-
chandise described in paragraph (1)(B) is affiliated with 
the person who uses the merchandise described in para-
graph (1)(B) to assemble or complete in the foreign country 
the merchandise that is subsequently imported into the 
United States, and 
"(C) whether imports into the foreign country of the 
merchandise described in paragraph (1)(B) have increased 
after the initiation of the investigation which resulted in 
the issuance of such order or finding.", 
(b) TIME LIMITS FOR ADMINISTERING AUTHORITY DETERMINA-
TIONS.—Section 781 (19 U.S.C. 1677J) is amended by adding at 
the end the following: 
"(f) TIME LIMITS FOR ADMINISTERING AUTHORITY DETERMINA-
TIONS.—The administering authority shall, to the maximum extent 
practicable, make the determinations under this section within 
300 days from the date of the initiation of a countervailing duty 
or antidumping circumvention inquiry under this section.". 
SEC. 231. EVTOENCE. 
(a) 
CONDUCT 
OF 
INVESTIGATIONS 
AND 
ADMINISTRATIVE 
REVIEWS.—Subtitle D of title VII (19 U.S.C. 1671) is amended 
by adding at the end the following new section: 
"SEC. 782. CONDUCT OF INVESTIGATIONS AND ADMINISTRATIVE 
19 USC 1677m. 
REVIEWS. 
"(a) TREATMENT OF VOLUNTARY RESPONSES IN COUNTERVAILING 
OR ANTIDUMPING DUTY INVESTIGATIONS AND REVIEWS.—In 
any 
investigation under subtitle A or B or a review under section 
751(a) in which the administering authority has, under section 
777A(c)(2) or section 777A(e)(2)(A) (whichever is applicable), limited 
the number of exporters or producers examined, or determined 
a single country-wide rate, the administering authority shall estab-
108 STAT. 4894 
PUBLIC LAW 103-465—DEC. 8, 1994 
lish an individual countervailable subsidy rate or an individual 
weighted average dumping margin for any exporter or producer 
not initially selected for individual examination under such sections 
who submits to the administering authority the information 
requested from exporters or producers selected for examination, 
if— 
"(1) such information is so submitted by the date specified— 
"(A) for exporters and producers that were initially 
selected for examination, or 
"(B) for the foreign government, in a countervaiHng 
duty case where the administering authority has deter-
mined a single country-wide rate; £Uid 
"(2) the number of exporters or producers who have submit-
ted such information is not so large that individual examination 
of such exporters or producers would be unduly burdensome 
and inhibit the timely completion of the investigation. 
"(b) CERTIFICATION OF SUBMISSIONS.—-Any person providing fac-
tual information to the administering authority or the Commission 
in connection with a proceeding under this titie on behalf of the 
petitioner or any other interested party shall certify that such 
information is accurate and complete to the best of that person's 
knowledge. 
"(c) DIFFICULTIES IN MEETING REQUIREMENTS.— 
"(1) NOTIFICATION BY INTERESTED PARTY.—If an interested 
party, promptiy after receiving a request from the administer-
ing authority or the Commission for information, notifies the 
administering authority or the Commission (as tiie case may 
be) that such party is unable to submit the information 
requested in the requested form and manner, together with 
a full explanation and suggested alternative forms in which 
such party is able to submit the information, the administering 
authority or the Commission (as the case may be) shall consider 
the ability of the interested party to submit the information 
in the requested form and manner and may modify such 
requirements to the extent necessary to avoid imposing an 
unreasonable burden on that party. 
"(2) ASSISTANCE TO INTERESTED PARTIES.—^The administer-
ing authority and the Commission shall take into account any 
difficulties experienced by interested parties, particularly small 
companies, in supplying infoimation requested by the admin-
istering authority or the Commission in connection with inves-
tigations and reviews under this titie, and shall provide to 
such interested parties any assistance that is practicable in 
supplying such information. 
"(d) DEFICIENT SUBMISSIONS.—If the administering authority 
or the Commission determines that a response to a request fer 
information u n ^ r this titie does not comply with the request, 
the administering authority or the Commission (as the case may 
be) shall prtMnptiy inform the person submitting the response of 
the nature of the deficiency and shall, to the extent practicable, 
provide that person with an opportunity to remedy or explain 
the deficiency in hght of the time limits estabhshed for the comple-
tion of investigations or reviews under this title. If that person 
submits furiher information in response to such deficiency and 
either— 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4895 
"(1) the admimsteiing authority or the Commission (as 
the case may be) finds that such response is not satisfactory, 
or 
"(2) such response is not submitted within the apphcable 
time Hmits, 
then the administering authority or the Commission (as the case 
may be) may, subject to subsection (e), disregard aU or part of 
the original and subsequent responses. 
"(e) USE OF CERTAIN INFORMATION.—In reaching a determina-
tion under section 703, 705, 733, 735, 751, or 753 the administering 
authority and the Commission shall not decHne to consider informa-
tion that is submitted by an interested party and is necesssiry 
to the determination but does not meet all the apphcable require-
ments estabUshed by the administering authority or the Commis-
sion, if— 
"(1) the information is submitted by the deadline estab-
lished for its submission, 
"(2) the information can be verified, 
"(3) the information is not so incomplete that it cannot 
serve as a reliable basis for reaching the apphcable determina-
tion, 
"(4) the interested party has demonstrated that it acted 
to the best of its ability in providing the information and 
meeting the requirements estabUshed by the administering 
authority or the Commission with respect to the information, 
and 
"(5) the information can be used without undue difficulties, 
"(f) NoNACCEPTANCE OF SUBMISSIONS.—If the administering 
authority or the Commission declines to accept into the record 
any information submitted in an investigation or review under 
this titie, it shall, to the extent practicable, provide to the person 
submitting the information a written expkination of the reasons 
for not accepting the information. 
**(g) PuBUC COMMENT ON INFORMATION.—Information that is 
submitted on a timely basis to the administering authority or the 
Commission during the course of a proceeding under this titie 
shall be subject to comment by other parties to the proceeding 
within such reasonable time as the administering authority or 
the Commission shall provide. The administering authority and 
the Commission, before making a final determination under section 
705, 735, 751, or 753 shall cease collecting information and shall • 
provide the parties with a final opportunity to comment on the 
mformation ootained by the administering authority or the Commis-
sion (as the case may be) upon which the parties have not previously 
had an opportunity to comment. Comments containing new factual 
information shall be disregarded. 
"(h) TERMINATION OF INVESTIGATION OR REVOCATION OF ORDER 
FOR LACK OF INTEREST.—The administering authority may— 
"(1) terminate an investigation under subtitie A or B with 
respect to a domestic like product if, prior to p^ibUcation of 
an order under section 706 or 736, the administering authority 
determines that producers accounting for substantially all of 
the production of that domestic like product have expressed 
a lack of interest in issuance of an order; and 
"(2) revoke an order issued under section 706 or 736 with 
respect to a domestic like product, or terminate an investigation 
suspended under section 704 or 734 with respect to a domestic 
108 STAT. 4896 
PUBLIC LAW 103-465—DEC. 8, 1994 
Uke product, if the administering authority determines that 
producers accounting for substantially all of the production 
of that domestic like product, have expressed a lack of interest 
in the order or suspended investigation. 
"(i) VERIFICATION.—The administering authority shall verify 
all information relied upon in making— 
"(1) a final determination in an investigation, 
"(2) a revocation under section 751(d), and 
"(3) a final determination in a review under section 751(a), 
if— 
"(A) verification is timely requested by an interested 
party as defined in section 771(9)(C), (D), (E), (F), or (G), 
and 
"(B) no verification was made under this subparagraph 
during the 2 immediately preceding reviews and determina-
tions imder section 751(a) of the same order, finding, or 
notice, except that this clause shall not apply if good cause 
for verification is shown.". 
(b) AVAILABILITY OF NONPROPRIETARY INFORMATION.—Section 
777(a)(4) (19 U.S.C. 1677f(a)(4)) is amended by striking "may dis-
close" and inserting "shall disclose". 
(c) DETERMINATIONS ON THE BASIS OF THE FACTS AVAILABLE.— 
Section 776 (19 U.S.C. 1677e) is amended to read as foUows: 
"SEC. 776. DETERMINATIONS ON THE BASIS OF THE FACTS AVAILABLE. 
"(a) IN GENERAL.—If— 
"(1) necessary information is not available on the record, 
or 
"(2) an interested party or any other person— 
**(A) withholds information that has been requested 
by the administering authority or the Commission under 
this title, 
"(B) fails to provide such information by the deadHnes 
for submission of the information or in the form and man-
ner requested, subject to subsections (c)(1) and (e) of section 
782, 
"(C) significantiy impedes a proceeding under this title, 
or 
"(D) provides such information but the information 
cannot be verified as provided in section 782(i), 
the administering authority and the Commission shall, subject to 
section 782(d), use the facts otJhierwise available in reaching the 
appUcable determination under this titie. 
"(b) ADVERSE INFERENCES.—If the administering authority or 
the Commission (as the case may be) finds that an interested 
party has failed to cooperate by not acting to the best of its ability 
to comply with a request for information fi:x)m the administering 
authority or the Commission, the administering authority or the 
Commission (as the case may be), in reaching the applicable deter-
mination under this titie, may use an inference that is adverse 
to the interests of that party in selecting fix)m among the facts 
otherwise available. Such adverse inference may include reUance 
on information derived fit)m— 
"(1) the petition, 
"(2) a final determination in the investigation under this 
titie, 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4897 
"(3) any previous review under section 751 or determination 
under section 753, or 
"(4) any other information placed on the record. 
"(c) CORROBORATION OF SECONDARY INFORMATION.—When the 
administering authority or the Commission reUes on secondary 
information rather than on information obtained in the course 
of an investigation or review, the administering authority or the 
Commission, as the case may be, shall, to the extent practicable, 
corroborate that information from independent sources that are 
reasonably at their disposal.". 
(d) CONFORMING AMENDMENTS.— 
(1) Section 777(e) (19 U.S.C. 1677fle)) is repealed. 
(2) The table of contents for titie VII is amended— 
(A) by amending the item relating to section 776 to 
read as follows: 
"Sec. 776. Determinations on the basis of the facts available."; 
and 
(B) by inserting after the item relating to section 781 
the following new item: 
"Sec. 782. Conduct of investigations £md administrative reviews.". 
\ 
SEC. 232. ANTIDUMPING PETITIONS BY TEDBD COUNTRIES. 
(a) IN GENERAL.—Subtitie D of titie VII (19 U.S.C. 1677 et 
seq.), £is amended by section 231(a), is amended by adding at 
the end the following new section: 
"SEC. 783. ANTIDUMPING PETITIONS BY TEIIRD COUNTRIES. 
19 USC 1677n. 
"(a) FILING OF PETITION.—The government of a WTO member 
may file with the Trade Representative a petition requesting that 
an investigation be conducted to determine i
f
—
-
"(1) imports fix)m another country are being sold in the 
United States at less than fair vahie, and 
"(2) an industry in the petitioning country is materially 
injured by reason of tiiose imports. 
"(b) INITIATION.—The Trade Representative, after consultation 
with the administering authority and the Conmiission and obtaining 
the approval of the WTO Council for Trade in (joods, shall deter-
mine whether to initiatci an investigation described in subsection 
(a). 
"(c) DETERMINATIONS.—Upon initiation of an investigation 
under this section, the Trade Representative shall request the fol-
lowing determinations be made according to substantive and pro-
cedural requirements specified by the Trade Representative, 
notwitiistanding anv other provision of this titie: 
"(1) The aaministering authority shall determine whether 
imports into the United States of the subject merchandise are 
being sold at less than fair value. 
(2) The Commission shall determine whether an industry 
in the petitioning country is materially injured by reason of 
imports of the subject merchandise into the United States. 
"(d) PUBLIC COMMENT.—^An opportunity for pubHc conunent 
shall be provided, as appropriate— 
(1) by the Trade Representative, in making the determina-
tion required by subsection (b), and 
"(2) by the administering authority and the Commission, 
in making the determination required by subsection (c). 
108 STAT. 4898 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(e) ISSUANCE OF ORDER.—If the admimstering authority makes 
an affirmative determination under paragraph (1) of subsection 
(c), and the Conmiission makes an affirmative determination under 
paragraph (2) of subsection (c), the administering authority shall 
issue an antidumping duty order in accordance witihi section 736 
and take such other actions as are required by section 736. 
"(f) REVIEWS OF DETERMINATIONS.—For purposes of review 
under section 516A or review under section 751, if an order is 
issued under subsection (d), the final determinations of the admin-
istering authority and the Commission under this section shall 
be treated as final determinations made under section 735. 
"(g) ACCESS TO INFORMATION.—Section 777 shall apply to inves-
tigations under this section, to the extent specified By the Trade 
Representative, sifter consultation with the administering authority 
and the Conmiission.". 
(b) CONFORMING AMENDMENT.—The table of contents for title 
VII, as amended by section 231(d)(2), is amended by adding after 
the item relating to section 782 the following new item: 
"Sec. 783. Antidumping petitions by third countries.". 
SEC. 233. CONFORMmG AMENDMENTS. 
(a) TERMINOLOGY.— 
(1) NORMAL VALUE.—Each of the following sections is 
amended by striking "foreign market value" each place it 
appears in the text and in tne heading and inserting normal 
value": 
(A) Section 731 (19 U.S.C. 1673). 
(B) Section 734 (19 U.S.C. 1673c). 
(C) Section 736 (19 U.S.C. 1673e). 
(D) Section 739 (19 U.S.C. 1673h). 
(E) Section 780 (19 U.S.C. 16771). 
(2) EXPORT PRICE.— 
(A) IN GENERAL.—Each of the following sections is 
amended by striking "United States price" each place it 
appears in the text and in the heading and inserting "export 
price (or the constructed export price) : 
(i) Section 731 (19 U.S.C. 1673). 
(ii) Section 734 (19 U.S.C. 1673c). 
(iii) Section 736 (19 U.S.C. 1673e). 
(iv) Section 738 (19 U.S.C. 1673g). 
(v) Section 739 (19 U.S.C. 1673h). 
(vi) Section 780 (19 U.S.C. 16771). 
(B) EXPORTER'^S SALES PRICE.—Section 738(bX3) (19 
U.S.C. 1673g(b)(3)) is amended by striking "exporter's sales 
f
)rice" and inserting "constructed export price". 
3) DOMESTIC LIKE PRODUCT.— 
(A) Each of the following sections is sunended by strik-
ing ^ike product" each place it appears in the text and 
in the heading and insertmg "domestic Uke product": 
(i) Section 771(4X(J) and (D) (19 U.S.C. 1677(4X0 
and (D)). 
(ii) 
Section 
771(7XCXiiiXIV) 
(19 
U.S.C. 
1677(7)(CXiii)(IV)). 
(iii) Section 771(9) (19 U.S.C. 1677(9)). 
(iv) Section 771(10) (19 U.S.C. 1677(10)). 
(B) Sections 771(7XBXiXII) and (III) and section 
771(7XCXiiXI) (19 U.S.C. 1677(7XB)(iXII) and (III) and 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4899 
(C)(ii)(I)) are Eunended by striking **like products" and 
insertiiig "domestic like products". 
(4) FOREIGN LIKE PRODUCT.—Section 771(16) (19 U.S.C. 
1677(16)) is amended— 
(A) by striMng "such or similar merchandise" in the 
text and inserting ^foreign Uke product", and 
(B) by amending the headmg to read as follows: "FOR-
EIGN LIKE PRODUCT. . 
(5) SUBJECT MERCHANDISE.— 
(A) Section 701(d) (19 U.S.C. 1671(d)) is amended by 
striking "a class or kind of merdiandise subject to a 
countervailing duty investigation" and inserting "subject 
merchandise . 
(B) Section 702(e) (19 U.S.C. 1671a(e)) is amended 
by striking "class or kind of merchandise that is the subject 
01 the investigation" each place it appears and inserting 
"subject mercmmdise". 
(C) Section 703(bXl) (19 U.S.C. 1671b(b)(l)) is amended 
by striking "merchandise which is the subject of the inves-
t^ation" and inserting "subject merchandise". 
(D) Section 704(aX2XA) (19 U.S.C. 1671c(aX2XA)) is 
amended by striking "merchandise that is subject to the 
investigation" sind inserting "subject merchandise". 
(E) Section 704(b) (19 U.S.C. 1671c(b)) is amended 
by striking "merchandise which is the subject of the inves-
tigation" and iuserting "subject merchandise". 
(F) Section 704(cXl) (19 U.S.C. 1671c(cXl)) is amended 
by striking "merchandise which is the subject of the inves-
t^ation" and inserting "subject merchandise". 
(G) Section 704(cX2) (19 U.S.C. 1671c(cX2)) is amended 
by striking "merchandise which is the subject of the inves-
tigation" and inserting "subject merchandise". 
(H) Section 704(cX3) (19 U.S.C. 1671c(cX3)) is amended 
by striking "mejrchandise which is the subject of an inves-
tigation" and inserting "subject merchandise". 
(I) Section 704(d)(3) (19 U.S.C. 1671c(dX3)) is amended 
by striking "merchandise covered by such agreement" and 
inserting *^ubject merchandise". 
(J) Section 704(fXl)(A) (19 U.S.C. 1671c(fXlXA)) is 
amended by striking "merchandise which is the subject 
of the investigation" and inserting "subject merchandise". 
(K) Subpai-agraphs (A)(i) and (B) of section 704(fX2) 
(19 U.S.C. 1671c(f)(2XAXi) and (B)) are amended by strik-
ing "merchandise which is the subject of the investigation" 
each place it appears and inserting "subject merchandise". 
(L) Paragraphs (2) and (3) of section 704(h) (19 U.S.C. 
1671c(h) (2) £ind (3)) are amended by strikiag "merchandise 
which is the subject of the investigation" each place it 
appears and inserting "subject merchandise". 
(M) Section 704(j) (19 U.S.C. 1671c(j)) is amended by 
striHng "merchandise which is the subject of the investiga-
tion" and inserting "subject merchandise". 
(N) Section 705(aXl) (19 U.S.C. 1671d(aXl)) is 
amended by strikLng "the merchandise" and inserting "the 
(O) Section 706(aX2) (19 U.S.C. 1671e(aX2)), as redesig-
nated by section 265, is amended by striking "class or 
108 STAT. 4900 
PUBLIC LAW 103-465—DEC. 8,1994 
kind of merchandise to which it appUes" and inserting 
"subject merchandise". 
(P) Section 732(eXl) (19 U.S.C. 1673a(e)(l)) is amended 
by striking "clsiss or kind of the merchandise which is 
the subject of the investigation" and inserting "the subject 
merchandise". 
(Q) Section 732(eX2) (19 U.S.C. 1673a(e)(2)) is amended 
by striking "merchandise which is the subject of the inves-
tigation*' and inserting "subject merchandise". 
(R) Section 732(e) (19 U.S.C. 1673a(e)) is amended 
by striking "class or kind of merchandise that is the subject 
of the investigation'' each place it appears and inserting 
"subject merchandise". 
(S) Section 734(a)(2)(A) (19 U.S.C 1673c(a)(2)(A)) is 
amended by striking "merchandise that is subject to the 
investigation'' and inserting "subject merchandise". 
(T) Subsections (b), (c)(1), (f)(1)(A), (f)(2)(A)(i), (g)(1), 
(h)(2), (h)(3), and Q) of section 734 (19 U.S.C 1673c(b), 
(c)(1), (f)(1)(A), (f)(2)(A)(i), (g)(1), (h)(2), (h)(3), and (})) are 
amended by striking "merchandise which is the subject 
of the investigation" each place it appears and inserting 
"subject merchandise". 
(U) Section 734(f)(2XB) (19 U.S.C. 1673c(f)(2XB)) is 
amended by striking "merchandise subject to the investiga-
tion" and inserting subject merchandise". 
(V) Section 735(aXl) (19 U.S.C. 
1673d(aXl)) 
is 
amended by striking "merchandise which was the subject 
of the investigation and inserting "subject merchandise". 
(W) Section 736(a)(2) (19 U.S.C. 1673e(a)(2)) is 
amended by striking "class or kind of merchsindise to which 
it appUes" and inserting "subject merchandise". 
(X) Section 736(b)(1) (19 U.S.C. 1673e(bXl)) is amended 
by striking "merchandise subject to the antidumping duty 
order" and inserting "subject merchandise". 
(Y) Section 736(b)(2) (19 U.S.C. 1673e(bX2)) is amended 
by striking "merchandise subject to an antidumping duty 
order'' and inserting "subject merchandise". 
(Z) Section 762(aX 1) (19 U.S.C. 1676a(aX D) is amended 
by striking "merchandise subject to the agreement" and 
inserting "subject merchandise". 
(AA) Section 762(bX2) (19 U.S.C. 1676a(bX2)) is 
amended by striking "merchandise subject to the order" 
and inserting "subject merchandise". 
(BB) Section 771(7XBXi)(I) (19 U.S.C. 1677(7)(BXiXI)) 
is amended by striking "merchandise which is tlie subject 
of the investigation" and inserting "subject merchandise". 
(CO Section 771(9)(A) (19 U.S.C. 1677(9)(A)) is 
amended by striking "merchandise which is the subject 
of an investigation under this titie" and inserting "subject 
merchandise'. 
(DD) Section 771(16)(A) (19 U.S.C. 1677(16)(A)) is 
amended by striking "merchandise which is the subject 
of an investigation" and inserting "subject merchandise". 
(EE) Section 771(16XBXi) (19 U.S.C. 1677(16XBXi)) is 
amended by striking "merchandise which is the subject 
of an investigation" and inserting "subject merchandise". 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4901 
(FF) Section 771(17) (19 U.S.C. 1677(17)) is amended 
by striking "merchandise which is the subject of the inves-
tigation" and inserting "subject merchandise". 
(GG) Section 771A(c) (19 U.S.C. 1677-l(c)) is amended 
by striking "merchandise imder investigation'' and insert-
ing "subject merchandise". 
(6) INITIATE.—(A) Each of the following sections is amended 
by striking "commenced" and inserting "initiated": 
(i) Section 702(a). 
(ii) Section 702(bXl). 
(iii) Section 703(b)(1). 
(iv) Section 703(cXl). 
- 
'-
(v) Section 732(a)(1). 
' 
(vi) Section 732(a)(2)(D). 
(vii) Section 732(b)(1). 
(viii) Section 733(bXl)(A) and (B). 
(ix) Section 733(bX2). 
(x) Section 733(cXl). 
(B) Sections 703(gXl) and 733(b)(2) are each amended by 
striking "commenc€jment" and inserting "initiation". 
(C) Section 732(a)(2XB) is amended by striking "conmience" 
and inserting "initiate". 
(7) TECHNICAL, AMENDMENTS.—The table of contents for 
title VII is amended— 
(A) by amending the item relating to section 772 to 
read as follows: 
"Sec 772. ibiport price and constructed export price."; 
(B) by striking "Foreign market value" in the item 
relating to section 773 and inserting "Normal value", and 
(C) by inserting after the item relating to section 708 
the following new item: 
"Sec. 709. Conditional payment of countervailing duty.". 
(b) OTHER CONFORMING AMENDMENTS.— 
(1) WTO 
ME;MBER.—Section 771(7XFXiii) 
(19 U.S.C. 
* 1677(7XFXiii)) is amended— 
(A) in subclause (I), by striking "GATT member'' and 
inserting "WTO member''; and 
(B) in subclause (II)— 
(i) in the subclause heading, by striking "GATT 
MEMBER" and inserting "WTO MEMBER"; 
(ii) by striking "GATT member" and inserting 
"WTO member''; and 
(iii) by striking "signatory" and all that foUows 
through "measures)" and inserting "WTO member". 
(2) ADMINISTERING AUTHORITY.—Section 771(1) (19 U.S.C. 
1677(1)) is amended by striking "the Treasury" and inserting 
"Commerce". 
SEC. 
234. 
APPLICATION 
TO 
CANADA 
AND 
MEXICO. 
Pursuant to sirticle 1902 of the North American Free Trade 
Agreement and section 408 of the North American Free Trade 
Agreement Implementiition Act, the amendments made by this 
titie shall apply with respect to goods from Canada and Mexico. 
19 u s e 1671a. 
19 u s e 1671b. 
19 u s e 1673a. 
19 u s e 1673b. 
19 u s e 3438 
note. 
108 STAT. 4902 
PUBLIC LAW 103-465—DEC. 8, 1994 
Subtitle B—Subsidies Provisions 
PART 1—COUNTERVAILABLE SUBSIDIES 
SEC. 251. COUNTERVAILABLE SUBSIDY. 
(a) IN GENERAL.—Section 771 (19 U.S.C. 1677) is amended 
by stiiJdng paragraph (5) and inserting tiie following: 
"(5) COUNTERVAILABLE SUBSIDY.— 
"(A) IN GENERAL.—Except as provided in paragraph 
(5B), a countervailable subsidy is a subsidy described in 
tiiis paragraph which is specific as described in paragraph 
(5A). 
"(B) SUBSIDY DESCRIBED.—A subsidy is described in 
this par£^raph in the case in which an autiiority— 
(i) provides a financial contribution, 
"(ii) provides any form of income or price support 
within the meaning of Article XVI of the GATT 1994, 
or 
**(iii) makes a payment to a fiinding mechanism 
to provide a financial contribution, or entrusts or 
directs a private entity to make a financial contribu-
tion, if providing the contribution would normally be 
vested in the government and the practice does not 
differ in substance from practices normally followed 
by governments, 
to a person and a benefit is thereby conferred. For purposes 
of tms paragraph and paragraphs (5A) and (5B), the term 
'authority* means a government of a country or any pubHc 
entity within the territory of the country. 
(C) OTHER FACTORS.—The determination of whether 
a subsidy exists shall be made without regard to whether 
the recipient of the subsidy is publicly or privately owned 
and without regard to whether the subsidy is provided 
directiy or indirectly on the manufacture, production, or 
export of merchandise. The administering authority is not 
required to consider the effect of the subsidy in determining 
whether a subsidy exists under this paragraph. 
"(D) FINANCIAL CONTRIBUTION.—The term 'financial 
contribution' means— 
*(i) the e^rect transfer of ftinds, such as grants, 
loans, and equity in^sions, or the potential direct 
transfer of funds or liabiUties, such as loan guarantees, 
"(ii) fbregoii^ or not collecting revenue that is 
otherwise due, such as granting tax credits or deduc-
tions icom. taxable income, 
"(iii) providing goods or services, other than gen-
eral iafi:astructure, or 
**(iv) purchasing goods. 
"(E) BENEFIT CONFERRED.—A benefit shall normaUy 
he treated as conferred where there is a benefit to the 
recipient, including— 
"(i) in the case of an equity infusion, if tiie invest-
ment decision is incoi^istent with the usual investment 
practice of private investors, including the practice 
regardiag iihe provision of risk capital, in the country 
in which the equity in^sion is made, 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4903 
"(ii) in the case of a loan, if there is a difference 
between the amount the recipient of the loan pays 
on the loan and the amount tne recipient would pay 
on a comparable conunercial loan that the recipient 
could actually obtain on the market, 
"(iii) in the case of a loan guarantee, if there is 
a difference, after adjusting for any difference in 
guarantee fees, between the amount the recipient of 
the guarantee pays on the guaranteed losm and the 
amount the recipient would pay for a comparable 
i commercial loan if there were no guarantee by the 
authority, and 
"(iv) in the case where goods or services are pro-
vided, if such goods or services are provided for less 
than adequate remuneration, and in the case where 
goods are purchased, if such goods are purchased for 
more than adequate remuneration. 
For purposes of clause (iv), the adequacy of remuneration 
shall be determined in relation to prevailing market condi-
tions for the good or service being provided or the goods 
being purchased in the country which is subject to the 
investigation or review. Prevailing market conditions 
include price, quahty, availabOity, marketabiUty, transpor-
tation, and other conditions of purchase or sale. 
"(F) CHANGE IN OWNERSHIP.—A change in ownership 
of all or part of a foreign enterprise or the productive 
assets of a foreign enterprise does not by itself require 
a determination by the administering authority that a past 
countervailable subsidy received by me enterprise no longer 
continues to be cotmtervailable, even if me change in 
ownership is accomplished through an arm's length 
transaction. 
"(5A) SPECIFICITY.— 
"(A) IN GENERAL.—^A subsidy is specific if it is an 
export subsidy described in subparagraph (B) or an import 
substitution subsidy described in subparagraph (C), or if 
it is determined to be specific pursuant to subparagraph 
(D). 
"(B) EXPORT SUBSIDY.^AU export subsidy is a subsidy 
that is, in law or in fact, contingent upon export perform-
ance, alone or as 1 of 2 or more conditions. 
*
*
(
C
) IMPORT SUBSTITUTION SUBSIDY.—An import substi-
tution subsidy is a subsidy that is contingent upon the 
use of domestic goods over imported goods, alone or as 
1 of 2 or more conditions. 
"(D) DOMESTIC SUBSIDY.—In determining whether a 
subsidy (other than a subsidy described in subparagraph 
(B) or (C)) is a specific subsidy, in law or in fact, to 
an enterprise or industry within the jurisdiction of the 
authority providing the subsidy, the following guidelines 
shall apply: 
"(i) Where the authority providing the subsidy, 
or the legislation pursuant to which the authority oper-
ates, expressly limits access to the subsidy to an enter-
prise or industry, the subsidy is specific as a matter 
of law. 
108 STAT. 4904 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(ii) Where the authority providing the subsidy, 
or the legislation pursuant to which the authority oper-
ates, estabUshes objective criteria or conditions govern-
ing the ehgibUity for, and the amount of, a subsidy, 
the subsidy is not specific as a matter of law, if— 
"(I) eUgibihty is automatic, 
"(II) the criteria or conditions for eUgibihty 
are strictly followed, and 
"(III) the criteria or conditions are clearly set 
forth in the relevant statute, regulation, or other 
official document so as to be capable of verification. 
For purposes of this clause, the term 'objective criteria 
or conditions* means criteria or conditions that are 
neutral and that do not favor one enterprise or industry 
over another. 
"(iii) Where there are reasons to believe that a 
subsidy may be specific as a matter of fact, the subsidy 
is specific if one or more of the foUowing factors exist: 
"(I) The actual recipients of the subsidy, 
whether considered on an enterprise or industry 
basis, are limited in number. 
"(II) An enterprise or industry is a predomi-
nant user of the subsidy. 
"(Ill) An enterprise or industry receives a dis-
proportionately large amount of the subsidy. 
"(IV) The manner in which the authority 
providing the subsidy has exercised discretion in 
the decision to grant the subsidy indicates that 
an enterprise or industry is favored over others. 
In evaluating the factors set forth in subclauses (I), 
(II), (III), and (IV), the administering authority shall 
take into accoimt the extent of diversification of eco-
nomic activities within the jurisdiction of the authority 
providing the subsidy, and the length of time during 
which the subsidy program has been in operation. 
"(iv) Where a subsidy is limited to an enterprise 
or industry located within a designated geographical 
region within the jurisdiction of the authority providing 
the subsidy, the subsidy is specific. 
For purposes of this para^apn and paragraph (5B), any ref-
erence to an enterprise or industry is a reference to a foreign 
enterprise or foreign industry and includes a group of such 
enterprises or industries. 
"(5B) 
CATEGORIES OF NONCOUNTERVAILABLE SUBSIDIES.— 
"(A) IN GENERAL.—Notwithstanding the provisions of 
paragraphs (5) and (5A), in the case of merchandise 
imported fix)m a Subsidies Agreement country, a subsidy 
shall be treated as noncountervailable if the administering 
authority determines in an investigation under subtitle 
A or a review under subtitle C that the subsidy meets 
all of the criteria described in subparagraph (B), (C), or 
(D), as the case may be, or the provisions oi subparagraph 
(E)(i) apply. 
"(B) RESEARCH SUBSIDY.— 
"(i) IN GENERAL.—Except for a subsidy provided 
on the msmufacture, production, or export of civil air-
craft, a subsidy for research activities conducted by 
' • W « i s | ^ ' 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4905 
a person, or by a higher education or research 
establishment on a contract basis with a person, shall 
be treated as noncountervailable, if the subsidy covers 
not more than 75 percent of the costs of industrial 
research or not more than 50 percent of the costs 
of precompetitive development activity, and such sub-
sidy is Hmited exclusively to— 
"(I) the costs of researchers, technicians, and 
other supporting staff employed exclusively in the 
research activity, 
"(II) the costs of instruments, equipment, land, 
or buildings that are used exclusively and perma-
nently (except when disposed of on a commercial 
basis) for the research activity, 
"(III) the costs of consultancy and equivalent 
services used exclusively for the research activity, 
including costs for bought-in research, technical 
knowledge, and patents, 
"(IV) 
additional 
overhead 
costs 
incurred 
directly as a result of the research activity, and 
"(V) other operating costs (such as materisds 
and suppUes) incurred directiy as a result of the 
research activity. 
"(ii) 
DEFINITIONS.—For 
purposes 
of 
this 
subparagraph— 
"(I) INDUSTRIAL RESEARCH.—The term 'indus-
trial research' means planned search or critical 
investig;ation aimed at the discovery of new knowl-
edge, with the objective that such knowledge may 
be useful in developing new products, processes, 
or services, or in bringing about a significant 
improvfsment to existing products, processes, or 
services. 
"(II) 
PRECOMPETITIVE DEVELOPMENT ACTIV-
ITY.—^The term *precompetitive development activ-
ity* means the translation of industnal research 
findings into a plan, blueprint, or design for new, 
modified, or improved products, processes, or serv-
ices, whether intended for sale or use, including 
the creation of a first prototype that would not 
be capable of commercisd use. The term also may 
include the conceptuEd formulation and design of 
products, processes, or services alternatives and 
initial demonstration or pilot projects, if these 
same projects cannot be converted or used for 
industrial appUcation or commercial exploitation. 
The term does not include routine or periodic alter-
ations to existing products, production Unes, msuiu-
facturirig processes, services, or other ongoing 
operations even if those alterations may represent 
improvements. 
"(iii) CALCULATION RULES.— 
"(I) IN GENERAL.—In the case of a research 
activity that spans both industrial research and 
{)recompetitive development activity, the allowable 
evel of the noncountervailable subsidy shall not 
exceed 62.5 percent of the costs set forth in 
108 STAT. 4906 
PUBLIC LAW 103-465—DEC. 8, 1994 
subclauses (I), (II), (III), (IV), and (V) of clause 
(i). 
"(II) 
TOTAL ELIGIBLE COSTS.—The allowable 
level of a noncountervailable subsidy described in 
clause (i) shall be based on the total eligible costs 
incurred over the diu-ation of a particular project. 
"(C) SUBSIDY TO DISADVANTAGED REGIONS.— 
^ 
"(i) IN GENERAL.—^A subsidy provided, pursuant 
to a general framework of regional development, to 
a person located in. a disadvantaged region within a 
coimtry shall be treated as noncountervailable, if it 
is not specific (within the meaning of paragraph (5A)) 
within eUgible regions and if the following conditions 
are met: 
"(I) Each region identified as disadvantaged 
within the territory of a country is a clearly des-
ignated, contiguous geographical area with a defin-
able economic and administrative identity. 
"(II) Each region is considered a disadvantaged 
region on the basis of neutral £Uid objective criteria 
indicating 
that 
the 
region is 
disadvantaged 
because of more than temporary circumstances, 
and such criteria are clearly stated in the relevant 
statute, regulation, or other official document so 
as to be capable of verification. 
"(Ill) The criteria described in subclause (II) 
include a measurement of economic development 
"(IV) Programs provided within a general 
fi*amework of regional development include ceihngs 
on the amount of assistance that can be granted 
- 
to a subsidized project Such ceilings are dmeren-
tiated according to the different levels of develop-
ment of assisted regions, and are expressed in 
terms of investment costs or costs of job creation. 
Within such ceilings, the distribution of assistance 
is sufficientiy broad and even to avoid the predomi-
nant use of a subsidy by, or the provision of dis-
proportionately large amoimts of a subsidy to, an 
enterprise or industry as described in parsigraph 
(5AXD). 
"(ii) MEASUREMENT OF ECONOMIC DEVELOPMENT.— 
For purposes of clause (i), the measurement of economic 
development shall be based on one or more of the 
following factors: 
"(I) Per capita income, household per capita 
income, or per capita gross domestic product that 
does not exceed 85 percent of the average for the 
countnr subject to investigation or review. 
"(ll) An unemployment rate that is at least 
110 percent of the average unemployment rate 
for the country subject to investigation or review. 
The measurement of economic development shall cover 
a 3-year period, but may be a composite measurement 
and mav include factors other than those set forth 
in this clause. 
"(iii) 
DEFINITIONS.—^For 
p\irposes 
of 
this 
subparagraph— 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4907 
"(I) GENERAL FRAMEWORK OF REGIONAL DEVEL-
OPMENT.—The term 'general framework of regional 
development^ means that the regional subsidy pro-
grams are part of an internally consistent and 
generally appUcable regional development policy, 
and that regional development subsidies are not 
granted in isolated geographical points having no, 
or virtually no, influence on the development of 
a region,. 
(II) NEUTRAL AND OBJECTIVE CRITERL\.—The 
term 'neutral and objective criteria' means criteria 
that do not favor certain regions beyond what is 
appropriate for the elimination or reduction of 
regional disparities within the framework of the 
regional development poUcy. 
"(D) SUBSIDY FOR ADAPTATION OF EXISTING FACILITIES 
TO NEW ENVIRONMENTAL REQUIREMENTS.— 
"(i) IN GENERAL.—^A subsidy that is provided to 
promote the adaptation of existing facihties to new 
environmental requirements that are imposed by stat-
ute or by r€!gulation, and that result in greater con-
straints and financial burdens on the recipient of the 
subsidy, shall be treated as noncoimtervailable, if the 
subsidy— 
"(I) is a one-time nonrecurring measure, 
"(II) is limited to 20 percent of the cost of 
adaptation, 
"(III) does not cover the cost of replacing and 
operating the subsidized investment, a cost that 
must be nilly borne by the recipient, 
"(IV) is directly hnked and proportionate to 
the recipient's planned reduction of nuisances and 
pollution, and does not cover any manufacturing 
cost saviiigs that may be achieved, and 
"(V) is available to all persons that can adopt 
the new equipment or production processes, 
"(ii) EXISTING FACIUTIES.—For piirposes of this 
subparagraph, the term 'existing faciUties means facih-
ties that have been in operation for at least 2 years 
before the date on which the new environmental 
requirements are imposed. 
"(E) NOTIFIED SUBSIDY PROGRAM.— 
"(i) GENERAL RULE.—If a subsidy is provided 
pursuant to a program that has been notified in accord-
ance with Article 8.3 of the Subsidies Agreement, the 
subsidy shaQ be ^ a t e d as noncoimtervailable and 
shall not be subject to investigation or review under 
this title. 
"(ii) EXCEPTION.—Notwithstanding clause (i), a 
subsidy shall be treated as countervailable if— 
"(I) the Trade Representative notifies the 
administering authority that a determination has 
been made pursuant to Article 8.4 or 8.5 of the 
Subsidies A ^ e m e n t that the subsidy, or the pro-
f
ram pursuant to which the subsidy was provided, 
oes not satisfy t ^ conditions and criteria of Arti-
cle 8.2 of t ^ Subsidies Agreement; and 
108 STAT. 4908 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(II) the subsidy is specific witMn the meaniiig 
of paragraph (5A). 
**(F) CERTAIN SUBSIDIES ON AGRICULTURAL PRODUCTS.— 
Domestic support measures that are provided with respect 
to products listed iu Annex 1 to the Agreement on Agri-
culture, and that the administering aumority determines 
conform fully to the provisions of Annex 2 to that Agree-
ment, shall be treated as noncountervailable. Upon request 
bv the administering authority, the Trade Representative 
shall provide advice regarding tlie interpretation and 
appHcation of Annex 2. 
"(G) PROVISIONAL APPLICATION.— 
"(i) Subparagraphs (B), (C), (D), and (E) shall not 
apply on or after the first day of the month that 
is 66 months after the WTO Agreement enters into 
force, tmless the provisions of such subparagraphs are 
extended pursuant to section 282(c) of the Uruguay 
Round Agreements Act 
"(ii) Subparagraph (F) shaU not apply to imports 
firom a WT(J member country at the end of the 9-
year period beginning on January 1, 1995. The Trade 
Representative shall determine the precise termination 
date for each WTO member country in accordance with 
paragraph (i) of Article 1 of the Agreement on A ^ -
culture and such date shall be notmed to the admin-
istering authority.", 
(b) NET COUNTERVAILABLE SUBSIDY.—Section 771(6) (19 U.S.C. 
1677(6)) is amended by inserting "countervailable" before "subsidy" 
each place it appears in the text and in the heading. 
PART 2—REPEAL OF SECTION 303 AND 
CONFORMING AMENDMENTS 
SEC. 261. REPEAL OF SECTION 303. 
(a) IN GENERAL.—Section 303 of the Tariff Act of 1930 (19 
U.S.C. 1303) is repealed eflfective on the effective date of this 
titie. 
19 use 1303 
(b) SAVINGS PROVISIONS.— 
"°*®- 
(1) CONTINUING EFFECT O F LEGAL DOCUMENTS.—All orders, 
determinations, and other administrative actions— 
(A) which have been issued pursuant to an investiga-
tion conducted under section 303 of the Tariff Act of 1930, 
and 
(B) which are in effect on the effective date of this 
titie, or were final before such date and are to become 
effective on or after such date, 
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance 
with law by the administering authority, the International 
Trade Commission, or a court of competent jurisdiction, or 
by operation of law. Except as provided in paragraph (3), such 
orders or determinations shall oe subject to review under sec-
tion 751 of the Tariff Act of 1930 and, to the extent appHcable, 
investigation under section 753 of such Act (as added by this 
titie). 
(2) PROCEEDINGS NOT AFFECTED.—^The provisions of sub-
section (a) shall not affect any proceedings, including notices 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4909 
of proposed rulemaking, pending before the administering 
authority or the International Trade Commission on the effec-
tive date of this title with respect to such section 303. Orders 
shall be issued in such proceedings, appeals shall be taken 
therefi:x)m, and payments shall be made pursuant to such 
orders, in accordance with such section 303 as in eflfect on 
the day before the eflfective date of this title and, except as 
provided in paragraiph (3), shall be subject to review under 
section 751 of me Tariff Act of 1930 and, to the extent 
appUcable, investigation imder section 753 of such Act Orders 
issued in any such proceedings shall continue in effect until 
modified, terminated, superseded, set aside, or revoked in 
accordance with law by the administering authority, a court 
of competent jurisdiction, or by operation of law. Nothing in 
this section shall be deemed to prohibit the discontinuance 
or modification of any such proceeding under the ssune terms 
and conditions and to the same extent that such proceeding 
could have been discontinued or modified if this section had 
not been enacted. 
(3) SUITS NOT AFFECTED.—^The provisions of subsection (a) 
shall not affect the review pursuant to section 516A of the 
Tariff Act of 1930 of a countervailing duty order issued pursu-
ant to an investigation conducted under section 303 of such 
Act or a review of a countervailing duty order issued under 
section 751 of such Act, if such review is pending or the time 
for filing such review has not expired on the effective date 
of thistitie. 
(c) DEFINITION OF ^^MINISTERING AUTHORITY.—^For p\irposes 
19 use 1303 
of this section, the term "administering authority" has the meaning 
"°^-
given such term by section 771(1) of the Tariff Act of 1930. 
(d) CONFORMING AMENDMENTS.— 
(1) IN GENERAL.— 
(A) AMENDMENTS TO TRADE ACT OF 1974.— 
(i) Section 331(dX3) of the Trade Act of 1974 (19 
U.S.C. 1303 note) is repealed. 
(ii) Section 152(aX2) of the Trade Act of 1974 (19 
U.S.C. 2192(a)(2)) is amended by striking "(A) m the 
case of and all that foUows through "(B)". 
(iii) Section 154(a) of the Trade Act of 1974 (19 
U.S.C. 219^l(a)) is amended by striking "or section 
303(e) of the Tariff Act of 1930,". 
(B) AMENDMENTS TO TARIFF ACT OF 1930.—The following 
sections of the Tariff Act of 1930 are amended: 
(i) Section 315(d) (19 U.S.C. 1315(d)) is amended 
by inserting "(as in effect on the day before the effective 
date of titie II of the Uruguay Round Agreements 
Act) or section 701" after "section 303". 
(ii) Section 337(bX3) (19 U.S.C. 1337(b)(3)) is 
amended— 
(I) by striking "of section 303 or subtitie B 
of titie VII of the Tariff Act of 1930" and inserting 
"of subtitie B of titie VII of this Actf', 
(II) by striking "section 303, 671, or 673" and 
inserting "section 701 or 731", 
(III) by striking "section 303, 701," and insert-
ing "section 701", 
108 STAT. 4910 
PUBLIC LAW 103-465—DEC. 8, 1994 
(IV) by striking "of the Secretary under section 
303 of this Act or", and 
(V) by striking "matter within such section 
303, 701, or" and inserting "matter within such 
section 701 or". 
(iii) Section 701 (19 U.S.C. 1671) is amended by 
striking subsection (f). 
(ivT Section 780(c)(1) (19 U.S.C. 1677i(c)(l)) is 
amended by striking ", 732(a), or 303" and inserting 
"or 732(a)". 
19 use 1303 
(C) OTHER REFERENCES.—Any reference to section 303 
"°*®- 
in any other Federal law, Executive order, rule, or regula-
tion shall be treated as a reference to section 303 of the 
Tariff Act of 1930 as in effect on the day before the effective 
date of title II of this Act. 
19 use 1315 
(2) EFFECTIVE DATE.—The amendments made by this sub-
"°*®- 
section shall take effect on the effective date of this title. 
SEC. 262. IMPOSITION OF COUNTERVAILING DUTIES. 
Section 701 (a), (b), and (c) (19 U.S.C. 1671 (a), (b), and (c)) 
are amended to read as follows: 
"(a) GENERAL RULE.—If— 
"(1) the administering authority determines that the 
government of a country or any pubUc entity within the terri-
tory of a country is providing, directiy or indirectiy, a 
countervailable subsidy with respect to the manufacture, 
production, or export of a class or kind of merchandise imported, 
or sold (or likely to be sold) for importation, into the United 
States, and 
"(2) in the case of merchandise imported from a Subsidies 
Agreement country, the Conmiission determines that— 
"(A) an industry in the United States— 
"(i) is materially injured, or 
"(ii) is threatened with material injury, or 
"(B) the establishment of an industty in the United 
States is materially retarded, 
by reason of imports of tiiat merchandise or by reason of sales 
(or the likelihood of sales) of that merchandise for importation, 
then there shall be imposed upon such merchandise a countervailing 
duty, ia addition to any other duty imposed, equal to the amount 
of tne net countervailable subsidy. For purposes of this subsection 
and section 705(b)(1), a reference to the sale of merchandise includes 
the entering into of any leasing arrangement regarding the mer-
chandise that is equivalent to the sale of the merchandise. 
"(b) SUBSIDIES AGREEMENT COUNTRY.—For purposes of this 
titie, the term 'Subsidies Agreement country* means— 
"(1) a WTO member country, 
"(2) a country which the President has determined has 
assumed obligations with respect to the United States which 
are substantially equivalent to the obligations under the Sub-
sidies Agreement, or 
"(3) a country with respect to which the President deter-
mines that— 
"(A) there is an agreement in effect between the United 
States and that country which— 
"(i) was in force on the date of the enactment 
of the Uruguay Round Agreements Act, and 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4911 
"(ii) requires unconditional 
most-favored-nation 
treatinent witii respect to articles imported into the 
United States, and 
"(B) the agireement described in subparagraph (A) does 
not expressly permit— 
"(i) actions required or permitted by the GATT 
1947 or GATT 1994, as defined in section 2(1) of the 
Uruguay Round Agreements Act, or required by the 
Congress, or 
(ii) nondiscriminatory prohibitions or restrictions 
on importation which are designed to prevent deceptive 
or uniair practices. 
"(c) COUNTERVAIUNG DUTY INVESTIGATIONS INVOLVING IMPORTS 
NOT ENTITLED TO A MATEIUAL INJURY DETERMINATION.—In the 
case of any article or merchandise imported fix»m a country which 
is not a Subsidies Agreement country— 
"(1) no determination by the Commission under section 
703(a), 704, or 705(t)) shall be required, 
"(2) an investigation may not be suspended under section 
704(c) or 704(1), 
"(3) no determination as to the presence of critical cir-
cumstances shall be made imder section 703(e) or 705(a)(2), 
"(4) section 706(c) shall not apply, 
"(5) any reference to a determination described in para-
graph (1) or (3), or to the suspension of an investigation under 
section 704(c) or 704(1), shall be disregarded, and 
"(6) section 751(c) shall not apply.". 
SEC. 263. DE MINIMIS COUNTERVAILABLE SUBSIDY. 
(a) PRELIMINARY DETERMINATIONS.—Section 703(b) (19 U.S.C. 
1671b(b)) is amended by adding at the end the following new 
paragraph: 
"(4) D E MINIMIS COUNTERVAILABLE SUBSIDY.— 
**(A) GENERAL RULE.—In making a determination imder 
this subsection, the administering authority shall disregard 
any de minimis countervailable subsidy. For piirposes of 
tiie preceding sentence, a countervailable subsidy is de 
Tninimis if tDB administering authoritjr determines that 
the aggregate of the net countervEolable subsidies is less 
than 1 percent ad valorem or the equivalent specific rate 
for the subject merchandise. 
"(B) EXCEPTION FOR DEVELOPING COUNTRIES.—In the 
case of subject merchandise imported fix)m a Subsidies 
Agreement country (other than a country to which subpara-
graph (C) ai)plies) designated by the Trade Representetive 
as a developing coimtry in accordance with section 771(36), 
a counterveulable subsidy is de minimis if the administering 
authority determines that the aggregate of the net 
countervailable subsidies does not exceed 2 percent ad valo-
rem or the equivalent specific rate for the subject merchan-
dise. 
"(C) CERTAIN OTHER DEVELOPING COUNTRIES.—In the 
case of subject merchandise imported fi^m a Subsidies 
Agreement country that is— 
"(i) a least developed coimtry, as determined by 
the Trade Representetive in accordance with section 
771(36), or 
108 STAT. 4912 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(ii) a developing country with respect to which 
the Trade Representative has notified the administer-
ing authority that the country has eliminated its export 
subsidies on an expedited basis within the meaning 
of Article 27.11 of the Subsidies Agreement, 
subparagraph (B) shall be appHed by substituting '3 per-
cent* for 2 percent". 
"(D) LIMITATIONS ON APPUCATION OF SUBPARAGRAPH 
(C).— 
"(i) IN GENERAL.—In the case of a country 
described in subparagraph (C)(i), the provisions of 
subparagraph (C) shall not appty after the date that 
is 8 years Edler the date the WTO Agreement enters 
into force. 
"(ii) SPECIAL RULE FOR SUBPARAGRAPH (Cxii) COUN-
TRIES.—In the case of a country described in subpara-
graph (CXii), the provisions of subparagraph (C) shall 
not apply after the earUer of— 
"(I) the date that is 8 years after the date 
the WTO Agreement enters into force, or 
"(II) the date on which the Trade Representa-
tive notifies the administering authority that such 
country is providing an export subsidy.", 
(b) 
FINAL 
DETERMINATIONS.—Section 
705(a) 
(19 
U.S.C. 
1671d(a)) is amended by adding at the end the following new 
paragraph: 
"(3) D E MINIMIS COUNTERVAILABLE SUBSIDY.—In making 
a determination imder this subsection, the administering 
authority shall disregard any countervailable subsidy that is 
de minimis as defined in section 703(b)(4).". 
SEC. 
2
6
4
. 
DETERMINATION 
OF 
COUNTERVAILABLE 
SUBSIDY 
RATE. 
(a) PRELIMINARY DETERMINATION.—Section 703(d) (19 U.S.C. 
19 use 1671b. 
1673b(d)) is amended— 
(1) by striking paragraph (2); 
(2) by redesignating paragraph (1), as amended by section 
215(a)(1), as paragraph (2); 
(3) by inserting "and" at the end of paragraph (2), as 
so redesignated; and 
(4) by inserting before such paragraph (2) the following 
new paragraph: 
'X1)(A) shall— 
"(i) determine an estimated individual countervailable 
subsidy rate for each exporter and producer individually 
investigated, and, in accordance with section 705(c)(5), an 
estimated all-others rate for all ejcporters and producers 
not individually investigated and for new exporters and 
producers within the meaning of section 751(a)(2)(B), or 
"(ii) if section 777A(e)(2XB) appUes, determine a single 
estimated country-wide subsidy rate, apphcable to aU 
e3«)orters and producers, and 
"(B) shall oraer the posting of a cash deposit, bond, or 
other security, as the administering authority deems appro-
E
riate, for each entry of the subject merchandise in an amount 
ased on the estimated individual countervsulable subsidy rate, 
the estimated all-others rate, or the estimated country-wide 
subsidy rate, whichever is apphcable,". 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4913 
(b) FINAL DETERMINATION.— 
(1) IN GENERAI..—Section 705(cXl) (19 U.S.C. 1671d(c)(l)) 
is amended— 
(A) in subparagraph (B)— 
(i) by redesignating such subparagraph as subpara-
graph (C); and 
(ii) by striking **under paragraphs (1) and (2)" and 
all that follows through "security* and inserting "the 
suspension of Hquidation under paragraph (2) of section 
TOSCd)"; 
(B) by striking "and" at the end of subparsigraph (A); 
and 
(C) by inserting after subparagraph (A) the following 
new subparagraph: 
"(B)(i) the administering authority shall— 
"(I) 
determine 
an 
estimated 
individual 
countervailable subsidy rate for each exporter £ind pro-
ducer individually investigated, and, in accordance 
with paragraph (5), an estimated all-others rate for 
all exporters and producers not individually inves-
tigated and for new exporters and producers within 
the meaning of section 751(a)(2)(B), or 
"(II) if 777A(e)(2)(B) appUes, determine a single 
estimated country-wide subsidy rate, appUcable to all 
exporters and producers, 
"(ii) shall order the posting of a cash deposit, bond, 
or other security, £is the administering authority deems 
appropriate, for each entry of the subject merchandise in 
an 
amount 
based 
on 
the 
estimated 
individual 
countervailable subsidy rate, the estimated all-others rate, 
or the estimated country-wide subsidy rate, whichever is 
appHcable, and". 
(2) METHOD FOR DETERMINING COUNTERVAILABLE SUBSIDY 
RATE.—Section 705(c) (19 U.S.C. 1671d(c)) is amended by add-
ing at the end the following new psiragraph: 
"(5) METHOD FOR DETERMINING THE ALL-OTHERS RATE AND 
THE COUNTRY-WIDE SUBSIDY RATE.— 
"(A) ALL-OTHERS RATE.— 
"(i) GENERAL RULE.—For piuiposes of this sub-
^' section and section 703(d), the all-others rate shall 
be an amount 
equal to the weighted 
average 
countervailable subsidy rates estabUshed for exporters 
and producers individually investigated, excluding any 
zero and de minimis countervailable subsidy rates, and 
any rates determined entirely under section 776. 
"(ii) EXCEPTION.—If the countervailable subsidy 
rates estabUshed for all exporters and producers 
individually investigated are zero or de minimis rates, 
or are determined entirely under section 776, the 
administering authority may use any reasonable 
method to estabUsh an all-others rate for exporters 
: and producers not individually investigated, including 
averaging the weighted average countervailable sub-
sidy rates determined for the exporters and producers 
individually investigated. 
"(B) COUNI^RY-WIDE SUBSIDY RATE.—^The administering 
authority may calculate a single country-wide subsidy rate. 
108 STAT. 4914 
PUBLIC LAW 103-465—DEC. 8, 1994 
applicable to all exporters and producers, if the administer-
ing authority limits its examination pursuant to section 
777A(e)(2)(B). The estimated country-wide rate determined 
under section 703(dXl)(A)(ii) or paragraph (l)(B)(i)(II) of 
this subsection shall be based on indus^-wide data regard-
ing the use of subsidies determined to be countervailable.''. 
(c) TECHNICAL AND CONFORMING AMENDMENTS.— 
19 use 1671b. 
(1) Section 703(bX2) is amended— 
(A) by striking "subsection (b)(1)" and inserting "para-
graph (1)", 
(B) by striking "subsection 702(bX3)" and inserting 
"section 702(bX3)", 
(C) by striking "subsection 703(bXl)'' and inserting 
"paragraph (1)", and 
(D) by striking "section 703(c)'' and inserting "sub-
section (c) of this section". 
(2) Section 703(eX2) is amended by striking "subsection 
(dXD" and inserting "subsection (dX2)''. 
19 use 1671c. 
(3) Section 704(f)(2XA) is amended— 
(A) in clause (i), by striking "section 703(dXl)'' and 
inserting "section 703(dX2)''; and 
(B) in clause (iii), by striking "section 703(d)(1)'' and 
inserting "section 703(dXlXB)''. 
(4) Section 704(f)(2XB) is amended— 
(A) by striking "section 703(d)(1)'' and inserting "section 
703(dX2)"; and 
(B) by striking "section 703(d)(2)'' and inserting "section 
703(dXlXB)". 
(5) Section 704(hX3) is amended— 
(A) in subparagraph (A), by striking "section 703(dXl)" 
and inserting section 703(d)(2)''; and 
(B) in subparagraph (B), by striking "section 703(dX2)" 
and inserting "^section 703(dXlXB)". 
(6) Section 704(iXlXA) is amended by striking "section 
703(d)(1)'' and inserting "section 703(dX2)''. 
19 use I67ld. 
(7) Section 705(cX2) is amended— 
(A) in subparagraph (A), by striking "section 703(dXl)" 
and inserting section 703(d)(2)''; and 
(B) in subparagraph (B), by striking "section 703(dX2)" 
and inserting **section 703(dXlXB)". 
(8) Section 705(cX3XB) is amended by striking "section 
703(d)(2)'' and inserting "section 703(dX IXB)*. 
l9USCl67ie. 
(9) Section 706(bXl) is amended by strildng "section 
703(d)(1)'' each place it appears and inserting 
"section 
703(dX2)". 
19 use I67if. 
(10) Section 707(a) is amended— 
(A) by striking "section 703(d)(2)'' and inserting "section 
703(dXlXB)", and 
(B) by striking "Section 703(dX2)'' in the heading and 
inserting "Section 703(dXlXB)". 
19 use I67lg. 
(11) Section 708 is amended by striking "section 703(dX2)'' 
and inserting "section 703(dXlXB)". 
SEC. 265. ASSESSMENT OF COUNTERVAILING DUTY. 
Section 706(a) (19 U.S.C. 1671e(a)) is amended— 
(1) by striking paragraph (2); and 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4915 
(2) by redesignating paragraphs (3) and (4) as paragraphs 
(2) and (3), respectively. 
SEC. 26«. NATURE OF COUNTERVAILABLE SUBSIDY. 
Section 771(7)(E)(i) (19 U.S.C. 1677(7)(E)(i)) is amended to read 
as follows: 
"(i) NATURE OF COUNTERVAILABLE SUBSIDY.—In 
determining whether there is a threat of material 
injuiy, the Commission shall consider information pro-
vided, to it by the administering authority regaraing 
the nature or the countervailable subsidy granted by 
a 
foreign 
coimtry 
(psirticularly 
whether 
the 
countervailable subsidy is a subsidy described in Arti-
cle 3 or 6.1 of the Subsidies Agreement) and the effects 
likely to be caused by the coimtervailable subsidy.". 
SEC. 267. DEFINITION OF DEVELOPING AND LEAST-DEVELOPED 
COUNTRY. 
Section 771 (19 U.S.C. 1677), as amended, is amended by 
adding at the end the following new paragraph: 
"(36) DEVELOPING AND LEAST DEVELOPED COUNTRY.— 
"(A) DEVEIX)PING COUNTRY.—The term 'developing 
country* means a country designated as a developing coun-
try by the Trade Representative. 
\B) 
LEAST DEVELOPED COUNTRY.—The term least 
developed country^ means a country which the Trade Rep-
resentative determines is— 
"(i) a country referred to as a least developed coun-
within the meaning of paragraph (a) of Annex 
[I to the Subsidies Agreement, or 
"(ii) anv other coimtry hsted in Annex VII to the 
Subsidies Agreement, but only if the country has a 
per capita gross national product of less than $1,000 
per annum as measui^ by the most recent data avail-
able fix)m the World Bank. 
"(C) PUBUCATION OF UST.—Tlte Trade Representative Federal 
shall publish m the Federal Register, and update as nee- Jjgf^^^^ 
essary, a nst of— 
yuuuwitiuii. 
"(i) developing countaies that have eliminated their 
export subsidies on an expedited basis within the 
meaning of Article 27.11 of the Subsidies Agreement, 
and 
"(ii) countries determined by the Trade Represent-
ative to be least developed or developing countries. 
"(D) FACTORS TO CONSIDER.—^In determining whether 
a country is a developing country under subparagraph (A), 
the Trade Representative shall consider such economic, 
trade, and other factors which the Trade Representative 
considers apprmmate, includiog the level of economic devel-
opment of such country (the assessment of which shall 
include a review of the country's per capita gross national 
product) and the country's share of world trade. 
*(E) LIMITATION ON DESIGNATION.—^A determination 
that a country is a devefoping or least developed country 
pursuant to tiiis paragraph shall be for purposes of this 
titie only and slialL not affect the determination of a coun-
try's status as a developing or least developed country 
with respect to any other law. . 
108 STAT. 4916 
PUBLIC LAW 103-465—DEC. 8, 1994 
SEC. 268. UPSTREAM SUBSIDIES. 
Section 771A(a) (19 U.S.C. 1677-l(a)) is amended— 
(1) by striking the matter preceding paragraph (1) and 
paragraph (1) and inserting the following: 
"(a) DEFINITION.—The term *upstream subsidy* mesins any 
countervailable subsidy, other than an export subsidy, that— 
"(1) is paid, or bestowed by an authority (as defined in 
section 771(5)) with respect to a product (hereafter in this 
section referred to as an Input product") that is used in the 
same country as the authority in the manufacture or production 
of merchandise which is the subject of a coimtervailing duty 
proceeding;", and 
(2) in the flush sentence at the end thereof, by inserting 
"countervailable" before "subsidjr". 
SEC. 269. SAMPLING 
AND 
AVERAGING; 
DETERMINATION 
OF 
COUNTERVAILABLE SUBSIDY RATE. 
(a) IN GENERAL.—Section 777A (19 U.S.C. 1677f-l), as amended 
by section 229, is amended by adding at the end the following 
•new subsection: 
"(e) DETERMINATION OF COUNTERVAILABLE SUBSIDY RATE.— 
"(1) GENERAL RULE.—In determining countervailable sub-
sidy rates imder section 703(d), 705(c), or 751(a), the admin-
istering authority shall determine an individual coimtervailable 
subsidy rate for each known exporter or producer of the subject 
merchandise. 
"(2) EXCEPTION.—If the administering authority determines 
that it is not practicable to determine individual countervailable 
subsidy rates under paragraph (1) because of the large number 
of exporters or producers involved in the investigation or review, 
the administering authority may— 
"(A) determine individual coimtervEiilable subsidy rates 
for a reasonable number of exporters or producers by limit-
ing its examination to— 
**(i) a sample of exporters or producers that the 
administering authority determines is statistically 
vaUd based on the information available to the admin-
istering authority at the time of selection, or 
"(ii) exporters and producers accoiuitiog for the 
largest vo]i]ume of the subject merchandise from the 
exporting country that the administering authority 
determines can be reasonably examined; or 
"(B) determine a single coimtry-wide subsidy rate to 
be appUed to all exporters and producers. 
The individual countervailable subsidy rates determined under 
subparagraph (A) shall be used to determine the all-others 
rate under section 705(c)(5).". 
(b) CONFORMING AMENDMENTS.— 
(1) The heading for section 777A, as amended by section 
229, is amended by inserting "AND COUNTERVAILABLE SUBSIDY 
RATE" after "MARGIN". 
(2) The table of contents for title VII is amended by insert-
ing "; determination of weighted average dimiping margin and 
countervailable subsidy rate" after "averaging" in the item 
relating to section 777A. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4917 
SEC. 270. CONFORMING AMENDMENTS. 
(a) COUNTERVAILABLE SUBSIDY.— 
(1) Except as provided in p£u*agraph (2), each of the follow-
ing sections is amended by strilang "subsidy" each place it 
appears in the text and in the heading and inserting 
"countervailable subsidy": 
(A) Section 702(e) (19 U.S.C. 1671a(e)). 
(B) Section 703(b)(1) (19 U.S.C. 1671b(b)(l)). 
(C) Section 703(b)(2) (19 U.S.C. 1671b(b)(2)). 
(D) 
Section 
703(c)(l)(B)(i)(I) 
(19 
U.S.C. 
1671b(c)(l)(B)(iXI)). 
(E) Section 704 (19 U.S.C. 1671c). 
(F) Section 705(a)(1) (19 U.S.C. 1671d(a)(l)). 
(G) Section 705(a)(2) (19 U.S.C. 1671d(a)(2)). 
(H) Section 706(a)(1) (19 U.S.C. 1671e(a)(l)). 
(I) Section 761 (19 U.S.C. 1676). 
(J) Section 762 (19 U.S.C. 1676a). 
(K) Section 771A(b) (19 U.S.C. 1677-l(b)). 
(L) Section 771A(c) (19 U.S.C. 1677-l(c)). 
(M) 
Section 
780(d)(l)(A)(ii) 
(19 
U.S.C. 
1677i(dXlXA)(ii)). 
(N) 
Section 
516A(a)(2)(BXiv) 
(19 
U.S.C. 
1516a(aX2XBXiv)). 
(2)(A) The heading for section 704(b) (19 U.S.C. 1671c(b)) 
is 
amended 
by 
striking 
"Subsidy" 
and 
inserting 
"Coimtervailable Subsidy". 
(B) The heading for section 771(AXc) (19 U.S.C. 1677-
1(c)) is 
amended 
by 
striking 
"Subsidy" 
and 
inserting 
"Countervailable Subsidy". 
(b) COUNTERVAILABLE SUBSIDIES.— 
(1) Except as provided in paragraph (2), each of the follow-
ing sections is amended by striking "subsidies" each place it 
appears in the text and in the heading and inserting 
"countervailable subsidies": 
(A) Section 701(d) (19 U.S.C. 1671(d)). 
(B) 
Section 
703(cXlXBXiXIII) 
(19 
U.S.C. 
1671b(cXlXB)(iXIII)). 
(C) Section 761 (19 U.S.C. 1676). 
(D) Section 771B (19 U.S.C. 1677-2). 
(2) The heading for section 761(a) and section 771B (19 
U.S.C. 1676(a) and 1677-2) are each amended by striking "Sub-
sidies" and inserting "Countervailable Subsidies". 
(c) OTHER CONFORMING AMENDMENTS.— 
(1) The heading for section 704(b) (19 U.S.C. 1671c(b)) 
is amended by striking "Subsidized Merchandise" and inserting 
"Subject Merchandise . 
(2) Subparagraphs (C) and (D) of section 771(4) (19 U.S.C. 
1677(4) (C) and (D)) are amended by striking "subsidized or" 
each place it appears and inserting "or imports of merchandise 
benefiting from a countervailable subsidy" after "imports". 
(3) Section 77lA (19 U.S.C. 1677-1), as amended, is 
eimended in subsection (c), by striking "subsidization" and 
inserting "the countervEulable subsidy". 
(4) The table of contents for titie VII is amended— 
(A) in the item relating to section 77IB, by inserting 
"countervailable" before "subsidies", and 
108 STAT. 4918 
PUBLIC LAW 103-465—DEC. 8, 1994 
(B) in the item relating to section 775, by striking 
"Subsidy" and inserting "Countervailable subsidy*. 
(d) SUBSIDIES AGREEMENT.—Section 702(e) (19 U.S.C. 1671a(e)) 
is amended by striking "Agreement" and inserting "Subsidies 
Agreement". 
(e) SUBSIDIES AGREEMENT AND AGREEMENT ON AGRICULTURE.— 
Section 771(8) (19 U.S.C. 1677(8)) is amended to read as follows: 
"(8) SUBSIDIES AGREEMENT; AGREEMENT ON AGRICULTURE.— 
"(A) 
SUBSIDIES 
AGREEMENT.—^The term 'Subsidies 
Agreement means the Agreement on Subsidies and 
Countervailing Measures referred to in section 101(d)(12) 
of the Uruguay Round Agreements Act. 
"(B) AGREEMENT ON AGRICULTURE.—The term 'Agree-
ment on Agriculture' means the Agreement on Agriculture 
referred to in section 101(d)(2) of the Uruguay Round 
Agreements Act.". 
PART 3—SECTION 303 INJURY 
INVESTIGATIONS 
SEC. 271. SPECIAL RULES FOR INJURY INVESTIGATIONS FOR CER-
TAIN SECTION 303 COUNTERVAILING DIHY ORDERS AND 
INVESTIGATIONS. 
(a) IN GENERAL.—Chapter 1 of subtitle C of title VII, as 
amended, is £imended by inserting after section 752 the following 
new section: 
19 use 1675b. 
"SEC. 753. SPECIAL RULES FOR INJURY INVESTIGATIONS FOR CER-
TAIN SECTION 303 COUNTERVAILING DUTY ORDERS AND 
INVESTIGATIONS. 
*(a) IN GENERAL.— 
"(1) INVESTIGATION BY THE COMMISSION UPON REQUEST.— 
In the case of a coimtervailing duty order described in para-
graph (2), which— 
"(A) appUes to merchandise that is the product of a 
Subsidies Agreement country, and 
"(B)(i) is in effect on the date on which such coimtiy 
becomes a Subsidies Agreement country, or 
"(ii) is issued on a date that is after the date described 
in clause (i) pursuant to a court order in an action brought 
under section 516A, 
the Commission, upon receipt of a request fix)m an interested 
party described in section 771(9) (C), (D), (E), (F), or (G) for 
an injury investigation with respect to such order, shall initiate 
an investigation and shall determine whether an industry in 
the United States is Hkely to be materially injured by reason 
of imports of the subject merchandise if the order is revoked. 
"(2) DESCRIPTION OF COUNTERVAILING DUTY ORDERS.—^A 
countervailing duty order described in this paragraph is an 
order issued under section 303 with respect to wnich the 
requirement of an affirmative determination of material injury 
imder section 303(a)(2) was not appUcable at the time such 
order was issued. 
"(3) REQUIREMENTS OF REQUEST FOR INVESTIGATION.—A 
request for an investigation under this subsection shall be 
suDmitted— 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4919 
"(A) in the case of an order described in paragraph 
(l)(BXi), within 6 months after the date on which me 
country described in paragraph (IXA) becomes a Subsidies 
Agreement country, or 
**(B) in the case of an order described in paragraph 
(DCBKii), within 6 months after the date the order is issued. 
"(4) SUSPENSION OF LIQUIDATION.—^With respect to entries 
of subject merchandise made on or after— 
"(A) in the case of an order described in paragraph 
(l)(BXi), the date on which the country described in para-
graph (1)(A) becomes a Subsidies Agreement country, or 
"(B) in the case of an order described in paragraph 
(l)(BXii), the date on which the order is issued, 
liquidation shall be suspended at the cash deposit rate in 
effect on the date described in subparagraph (A) or (B) (which-
ever is applicable). 
"(b) INVESTIGATION PROCEDURE AND SCHEDULE.— 
"(1) COMMISSION PROCEDURE.— 
"(A) IN GENERAL.—Except as otherwise provided in 
this section, the provisions of this title regarding evidence 
in and procedures for investigations conducted under sub-
titie A shall apply to investigations conducted by the 
Commission imder this section. 
"(B) TIME FOR COMMISSION DETERMINATION.—Except 
as otherwise provided in subparagraph (C), the Commission 
shall issue its determination under subsection (a)(1), to 
the extent possible, not later than 1 year after the date 
on which the investigation is initiated under this section. 
"(C) SPECLU. RULE TO PERMIT ADMINISTRATIVE FLEXIBIL-
ITY.—In the case of requests for investigations received 
under this section within 1 year after the date on which 
the WTO Agreement enters into force with respect to the 
United States, the Commission may, after consulting with 
the administering authority, initiate its investigations in 
a manner that results in determinations being made in 
all such investigations during the 4-year period beginning 
on such date. 
"(2) N E T COUNIERVAILABLE SUBSIDY; NATURE OF SUBSIDY.— 
"(A) NET COUNTERVAILABLE SUBSIDY.—The administer-
ing authority shall provide to the Commission the net 
countervailable subsiay that is likely to prevail if the order 
which is the subject of the investigation is revoked. The 
administering authority normally shall choose a net 
countervailable subsidy that was determined under section 
705 or subsection (a) or (b)(1) of section 751. If the Commis-
sion considers the magnitude of the net countervailable 
subsidy in making its determination under this section, 
the Commission shall use the net countervailable subsidy 
provided by the administering authority. 
"(B) NATURE OF SUBSIDY.—The administering authority 
shall inform the Commission of, and the Commission, in 
making its determination under this section, shall consider, 
the nature of the countervailable subsidy and whether 
the countervailable subsidy is a subsidy described in Article 
3 or Article 6.1 of the Subsidies Agreement. 
"(3) EFFECT OF COMMISSION DETERMINATION.— * 
108 STAT. 4920 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(A) AFFIRMATIVE DETERMINATION.—Upon being noti-
fied by the Commission that it has made an affirmative 
determination under subsection (a)(1)— 
"(i) the administering authority shall order the 
termination of the suspension of Hquidation required 
pursuant to subsection (a)(4), and 
"(ii) the countervailing duty order shall remain 
in effect until revoked, in whole or in part, under 
section 751(d). 
For purposes of section 751(c), a countervaiUng duty order 
described in this section shall be treated as issued on 
the date of pubHcation of the Commission's determination 
under this subsection. 
"(B) NEGATIVE DETERMINATION.— 
**(i) IN GENERAL.—Upon being notified by the 
Commission that it has made a negative determination 
under subsection (a)(1), the administering authoritry 
shall revoke the coimtervailing duty order, and shall 
refiind, vdth interest, any estimated countervaihng 
duties collected during the period hquidation was sus-
pended pursuant to siibsection (a)(4). 
**(ii) LIMITATION ON NEGATIVE DETERMINATION.— 
A determination by the Commission that revocation 
of the order is not likely to result in material injury 
to an industry by reason of imports of the subject 
merchandise shall not be based, in whole or in part, 
on any export taxes, duties, or other chaises levied 
on the export of the subject merchandise to tne United 
States that were specifically intended to offset the 
countervailable subsidy received. 
"(4) COUNTERVAILING DUTY ORDERS WITH RESPECT TO WHICH 
NO REQUEST FOR INJURY INVESTIGATION IS MADE.—If, witll 
respect to a countervaiUng duty order described in subsection 
(a), a request for an investigation is not made within the 
time required by subsection (aX3), the Commission shall notify 
the administering authority that a negative determination has 
been made under subsection (a) and the provisions of paragraph 
(3XB) shall apply with respect to the order. 
"(c) PENDING AND SUSPENDED COUNTERVAIUNG DUTY INVES-
TIGATIONS.—If, on the date on which a country becomes a Subsidies 
Agreement country, there is a countervailing duty investigation 
in progress or suspended under section 303 that applies to merchan-
dise wnich is a product of that country and with respect to which 
the requirement of an affirmative determination of material injury 
under section 303(a)(2) was not applicable at the time the investiga-
tion was initiated, the Commission shall— 
"(1) in the case of an investigation in progress, make a 
final determination under section 705(b) within 75 days after 
the date of an affirmative final determination, if any, by tlie 
administering authority, 
"(2) in the case of a suspended investigation to which 
section 704(i)(l)(B) appUes, make a final determination under 
section 705(b) within 120 days after receiving notice fix)m the 
administering authority of the resumption of the investigation 
pursuant to section 704(i), or within 45 days after the date 
of an affirmative final determination, if any, by the administer-
ing authority, whichever is later, or 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4921 
"(3) in the case of a suspended investigation to which 
section 704(i)(l)(C) applies, treat the countervailing duty order 
issued piu^uant to such section as if it were— 
"(A) an order issued under subsection (aXlXBXii) for 
purposes of subsection (aX3); £ind 
"(B) an order issued under subsection (aXlXBXi) for 
purposes of subsection (aX4). 
"(d) PUBLICATION IN FEDERAL REGISTER.—The administering 
authority or the Commission, as the case may be, shall publish 
in the Federal Register a notice of the initiation of any investigation, 
and a notice of any determination or revocation, made pursuant 
to this section. 
"(e) REQUEST FOR SIMULTANEOUS EXPEDITED REVIEW UNDER 
SECTION 751(c).— 
"(1) GENERAL RULE.— 
"(A) REQUESTS FOR REVIEWS.—Notwithstanding section 
751(c)(6XA) and except as provided in subparagraph (B), 
an interested party may request a review of an order 
under section 751(c) at the same time the party requests 
an investigation imder subsection (a), if the order involves 
the same or comparable subject merchandise. Upon receipt 
of such request, the administering authority, after consult-
ing with tiie (Jonmiission, shall initiate a review of the 
order under section 751(c). The Commission shall combine 
such review with the investigation under this section. 
"(B) EXCEPTION.—If the administering authority deter-
mines that the interested party who requested an investiga-
tion under this section is a related party or an importer 
within the meaning of section 771(4)(B), the administering 
authority may decline a request by such party to initiate 
a review of an order under section 751(c) wluch involves 
the same or comparable subject merchandise. 
"(2) CUMULATION.—If a review under section 751(c) is initi-
ated under paragraph (1), such review shall be treated as 
having been initiated on the same day as the investigation 
under this section, and the Commission may, in accordance 
with section 771(7)(G), cumulatively assess the volume and 
effect of imports of the subject merchandise from all countries 
with respect to which such investigations are treated as initi-
ated on the same day.. 
"(3) TIME AND PROCEDURE FOR COMMISSION DETERMINA-
TION.—The Commission shaU render its determination in the 
investigation conducted under this section at the same time 
as the Commission's determination is made in the review under 
section 751(c) that is initiated pursuant to this subsection. 
The Commission shall in all other respects apply the procedures 
and standards set forth in section 751(c) to such section 751(c) 
reviews.". 
(b) REVIEW OF DETERMINATIONS.—Section 516A(aX2) (19 U.S.C. 
1516a(aX2)) is amended— 
(1) in subparagraph (AXiXD, by striking "or (v)" and insert-
ing "(v), or (viii)", and 
(2) in subparagraph (B), by adding at the end the following: 
"(viii) A determination by the Commission under 
section 753(aXl).". 
79-194 O—95—12 : QL 3 Part 6 
108 STAT. 4922 
PUBLIC LAW 103-465—DEC. 8, 1994 
(c) CONFORMING AMENDMENT.—^The table of contents for title 
VII, as amended, is amended by inserting after the item relating 
to section 752 the following new item: 
"Sec. 753. Special rules for injviry inveetigations for certain section 303 countervail-
ing duty orders and investigations.". 
PART 4—ENFORCEMENT OF UNITED STATES 
RIGHTS UNDER THE SUBSIDIES AGREEMENT 
19 u s e 3571. 
SEC. 281. SUBSIDIES ENFORCEMENT. 
(a) 
ASSISTANCE REGARDING MULTILATERAL SUBSIDY REM-
EDIES.—The administering authority shall provide information to 
the pubHc upon request, and, to the extent feasible, assistance 
and advice to interested parties concerning— 
(1) remedies and benefits available under relevant provi-
sions of the Subsidies Agreement, and 
(2) the procedures relating to such remedies and benefits. 
(b) PROHIBITED SUBSIDIES.— 
(1) 
NOTIFICATION OF 
TRADE 
REPRESENTATIVE.—If 
the 
administering authority determines pursuant to title VII of 
the Tariff" Act of 1930 that a class or kind of merchandise 
is benefiting fi'om a subsidy which is prohibited under Article 
3 of the Subsidies Agreement, the administering authority shaU 
notify the Trade Representative and shall provide the Trade 
Representative with the information upon which the admin-
istering authority based its determination. 
(2) REQUEST BY INTERESTED PARTY REGARDING PROHIBITED 
SUBSIDY.—An interested party may request that the administer-
ing authority determine if there is reason to beUeve that mer-
chandise produced in a WTO member country is benefiting 
fix)m a subsidy which is prohibited under Article 3 of the 
Subsidies Agreement. The request shall contain such informa-
tion as the administering authority may require to support 
the allegations contained in the request. If the administering 
authority, after Einalyzing the request £ind other information 
reasonably available to the administering authority, determines 
that there is reason to believe that such merchandise is benefit-
ing fix)m a subsidy which is prohibited under Article 3 of 
the Subsidies Agreement, the administering authority shall 
so notify the Trade Representative, and shall include supporting 
information with the notification. 
(c) SUBSIDIES ACTIONABLE UNDER THE AGREEMENT.— 
(1) IN GENERAL.—If the administering authority determines 
pursuant to titie VII of the Tariff" Act of 1930 that a class 
or kind of merchandise is benefiting fi-om a subsidy described 
in Article 6.1 of the Subsidies Agreement, the administering 
authority shall notify the Trade Representative, and shall pro-
vide the Trade Representative with the information upon which 
the administering authority based its determination. 
(2) REQUEST BY INTERESTED PARTY REGARDING ADVERSE 
EFFECTS.—^An interested party may request the administering 
authority to determine if there is reason to believe that a 
subsidy which is actionable under the Subsidies Agreement 
is causing adverse effects. The request shall contain such 
information as the administering authority may require to sup-
port the allegations contained in the request. At the request 
of the administering authority, the Commission shall assist 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4923 
the administering authori^ in analyzing the information 
pertaining to the existence of such adverse effects. If the admin-
istering authority, after analyzing the request and other 
information reasonably available to the administering author-
ity, determines that tnere is reason to beUeve that a subsidy 
which is actionable under the Subsidies Agreement is causing 
adverse effects, the administering authority shall so notify the 
Trade Representative, and shall include supporting information 
with the notification. 
(d) INITIATION OF SECTION 301 INVESTIGATION.—On the basis 
of the notification and information provided by the administering 
authority pursuant to subsection (b) or (c), such other information 
as the Trade Representative may have or obtain, and where 
applicable, after consultation with an interested party referred to 
in subsection (b)(2) or (c)(2), the Trade Representative shall, unless 
such interested party objects, determine as expeditiously as possible, 
in accordance with the procedures in section 302(b)(1) of the Trade 
Act of 1974 (19 U.S.C. 2412(b)(1)), whether to initiate an investiga-
tion piu^uant to titie III of that Act (19 U.S.C. 2411 et seq.). 
At the request of the Trade Representative, the administering 
authority and the Commission shall assist the Trade Representative 
in an investigation initiated pursuant to this subsection. 
(e) NONACTIONABLE SUBSIDIES.— 
(1) 
COMPLIANCE WITH 
ARTICLE 8 OF 
THE 
SUBSIDIES 
AGREEMENT.— 
(A) MONITORING.—In order to monitor whether a sub-
sidy meets the conditions and criteria described in Article 
8.2 of the Subsidies Agreement and is nonactionable, the 
Trade Representative shall provide the administering 
authority on a timely basis with any information submitted 
or report made piu^uant to Article 8.3 or 8.4 of the Sub-
sidies Agreement regarding a notified subsidy program. 
The administering authority shall review such information 
and reports, and where appropriate, shall recommend to 
the Trade Representative mat the Trade Representative 
seek pursuant to Article 8.3 or 8.4 of the Subsidies Agree-
ment additional information regarding the notified subsidy 
program or a subsidy granted pursuant to the notified 
subsidy program. If the administering authority has reason 
to believe that a violation of Article 8 of the Subsidies 
Agreement exists, the administering authority shall so 
notify the Trade Representative, and shall iuclude support-
ing information with the notification. 
(B) REQUEST BY INTERESTED PARTY REGARDING VIOLA-
TION OF ARTICLE 8.—^An iuterested party may request tibie 
administering authority to determine if tliere is reason 
to believe that a violation of Article 8 of the Subsidies 
Agreement exists. The request shall contain such informa-
tion as the administering authority may require to support 
the allegations contained in the request. If the administer-
ing aumority, after analyzing tne request and other 
information reasonably available to the administering 
authority, 
determines 
that additional 
information 
is 
needed, the administering authority shall recommend to 
the Trade Representative that the Trade Representative 
seek, pursuant to Article 8.3 or 8.4 of the Subsidies Agree-
ment, additional information regarding the particular noti-
108 STAT. 4924 
PUBLIC LAW 103-465—DEC. 8, 1994 
fied subsidy program or a subsidy granted pursuant to 
the notified subsidy program. If the administering author-
ity determines that there is reason to beUeve that a viola-
tion of Article 8 of the Subsidies Agreement exists, the 
administering authority shall so notify the Trade Rep-
resentative, and shall include supporting information with 
the notification. 
(C) ACTION BY TRADE REPRESENTATIVE.— 
(i) If the Trade Representative, on the basis of 
the notification and information provided by the admin-
istering authority pursuant to subparagraph (A) or 
(B), and such other information as the Trade Rep-
resentative may have or obtain, and after consulting 
with the interested party referred to in subparagraph 
(B) and appropriate domestic industries, determines 
that there is reason to beUeve that a violation of Article 
8 of the Subsidies Agreement exists, the Trade Rep-
resentative shall invoke the procedures of Article 8.4 
or 8.5 of the Subsidies Agreement. 
(ii) For purposes of clause (i), the Trade Represent-
ative shall determine that there is reason to beUeve 
that a violation of Article 8 exists in anv case in 
which the Trade Representative determines that a noti-
fied subsidy program or a subsidy granted pursuant 
to a notified subsidy program does not satisfy the 
conditions and criteria required for a nonactionable 
subsidy program under this Act, the Subsidies Agree-
ment, and the statement of administrative action 
approved under section 101(a). 
(D) NOTIFICATION OF ADMINISTERING AUTHORITY.—The 
Trade Representative shall notify the administering author-
ity whenever a violation of Article 8 of the Subsidies Agree-
ment has been found to exist pursuant to Article 8.4 or 
8.5 of that Agreement. 
(2) SERIOUS ADVERSE EFFECTS.— 
(A) REQUEST BY INTERESTED PARTY.—^An interested 
party may request the administering authority to deter-
mine if there is reason to beUeve that serious adverse 
effects resulting from a program referred to in Article 8.2 
of the Subsidies Agreement exist. The request shall contain 
such information as the administering authority may 
require to support the aUegations contained in the rec^uest. 
(B) ACTION BY ADMINISTERING AUTHORITY.—^Withm 90 
days after receipt of the request described in subparagraph 
(A), the administering authority, after analyzing me 
request and other information reasonably available to the 
administering authority, shall determine if there is reason 
to beUeve that serious adverse effects resulting from a 
program referred to in Article 8.2 of the Subsidies Agree-
ment exist. If the determination of the administering 
authority is affirmative, it shall so notify the Trade Rep-
resentative and shaU include supporting information with 
the notification. The Commission shaU assist the admin-
istering authority in analyzing the information pertaining 
to the existence of such serious adverse effects if the admin-
istering authority requests the Commission's assistance. 
If the subsidy program that is aUeged to result in serious 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4925 
adverse effects has been the subject of a countervailing 
duty investigation or review under subtitle A or C of title 
VII of the Tariff Act of 1930, the administering authority 
shall take into account the determinations made by the 
administering authority and the Commission in such inves-
tigation or review and the administering authority shall 
complete its analysis as expeditiously as possible. 
(C) ACTION BY TRADE REPRESENTATIVE.—The Trade 
Representative, on the basis of the notification and informa-
tion provided by the administering authority pursuant to 
subparagraph (B), and such other information as the Trade 
Representative may have or obtain, shall determine as 
expeditiously as possible, but not later than 30 days after 
receipt of the notification provided by the administering 
authority, if there is reason to beUeve that serious adverse 
effects exist resulting fi-om the subsidy program which 
is the subject of the administering authority's notification. 
The Trade Reprcjsentative shall make an affirmative deter-
mination regarding the existence of such serious adverse 
effects unless the Trade Representative finds that the 
notification of the administering authority is not supported 
by the facts. 
(D) CoNSUi^TATlONS.—If the Trade 
Representative 
determines that there is reason to believe that serious 
adverse effects resulting fi-om the subsidy program exist, 
the Trade Representative, unless the interested party 
referred to in subparagraph (A) objects, shall invoke the 
procedures of Article 9 of the Subsidies Agreement, and 
shall request consultations pursuant to Article 9.2 of the 
Subsidies Agreement with respect to such serious adverse 
effects. If such consultations have not resulted in a mutu-
ally acceptable solution within 60 days after the request 
is made for such consultations, the Trade Representative 
shall refer the matter to the Subsidies Committee pursuant 
to Article 9.3 of the Subsidies Agreement. 
(E) DETERMINATION BY SUBSIDIES COMMITTEE.—If the 
Trade Representative determines that— 
(i) the Subsidies Committee has been prevented 
fi:x)m making an affirmative determination regarding 
the existence of serious adverse effects under Article 
9 of the Subsidies Agreement by reason of the reftisal 
of the WTO member country with respect to which 
the consultations have been invoked to join in an 
affirmative consensus-
(I) that such serious adverse effects exist, or 
(II) regarding a recommendation to such WTO 
member country to modify the subsidy program 
in such a way as to remove the serious adverse 
effects, or 
(ii) the Subsidies Committee has not presented 
its conclusions regarding the existence of such serious 
adverse effects within 120 days after the date the 
matter was referred to it, as required by Article 9.4 
of the Subsidies Agreement, 
the Trade Representative shall, within 30 days after such 
determination, 
make 
a 
determination 
under 
section 
304(a)(1) of the Trade Act of 1974 (19 U.S.C. 2414(a)(1)) 
108 STAT. 4926 
PUBLIC LAW 103-465—DEC. 8, 1994 
regarding what action to take under section 301(a)(1)(A) 
of that Act. 
(F) NONCOMPLIANCE WITH COMMITTEE RECOMMENDA-
TION.—In the event that the Subsidies Committee makes 
a reconmiendation under Article 9.4 of the Subsidies Agree-
ment and the WTO member country with respect to which 
such recommendation is made does not comply with such 
recommendation within 6 months after the date of the 
recommendation, the Trade Representative shall make a 
determination under section 304(a)(1) of the Trade Act 
of 1974 (19 U.S.C. 2414(a)(1)) regarding what action to 
take under section 301(a) of tiiat Act 
(f) NOTIFICATION, CONSULTATION, AND PUBUCATION.— 
(1) NOTIFICATION OF CONGRESS.—The Trade Representative 
shall submit promptiy to the Committee on Ways and Means 
of the House of Representatives, the Committee on Finance 
of the Senate, and other appropriate committees of the Congress 
any information submitted or report made pursuant to Article 
8.3 or 8.4 of the Subsidies Agreement regarding a notified 
subsidy program. 
(2) PUBUCATION IN THE FEDERAL REGISTER.—The admin-
istering authority shall publish regularly in the Federal Reg-
ister a stunmary notice of any information submitted or report 
made pursuant to Article 8.3 or 8.4 of the Subsidies Agreement 
regarding notified subsidy programs. 
(3) CONSULTATIONS WITH CONGRESS AND PRIVATE SECTOR.— 
The Trade Representative and the administering authority 
promptiy shall consult with the committees referred to in para-
graph (1), and with interested representatives of the private 
sector, regarding all information submitted or reports made 
pursuant to Article 8.3 or 8.4 of the Subsidies Agreement 
regarding a notified subsidy program. 
(4) ANNUAL REPORT.—Not later than February 1 of each 
year beginning in 1996, the Trade Representative and the 
administering authority shall issue a joint report to the Con-
gress detailing— 
(A) the subsidies practices of major trading partners 
of the United States, including subsidies that are prohib-
. ited, are causing serious prejudice, or are nonactionable, 
under the Subsidies Agreement, and 
(B) the monitoring and enforcement activities of the 
Trade Representative and the administering authority dur-
ing the preceding calendar year which relate to subsidies 
practices. 
(g) COOPERATION OF OTHER AGENCIES.—All agencies, depart-
ments, and independent agencies of the Federal Government shall 
cooperate fully with one another in carrying out the provisions 
of this section, and, upon the request of the administering authority, 
shall furnish to the administering authority all records, papers, 
and information in their possession which relate to the requirements 
of this section. 
(h) DEFINITIONS.—For purposes of this section: 
(1) ADVERSE EFFECTS.—The term "adverse effects" has the 
meaning given that term in Articles 5(a) and 5(c) of the Sub-
sidies Agreement 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4927 
(2) ADMINISTERING AUTHORITY.—The term "admimstering 
authority" has the meamng given that term in section 771(1) 
of the Tariff Act of 1930 (19 U.S.C. 1677(1)). 
(3) COMMISSION.—The term "Commission" means the 
United States International Trade Commission. 
(4) INTERESTED PARTY.—^The term *Hnterested party" means 
a party described in subparagraph (C), (D), (E), (F), or (G) 
of section 771(9) of the Tariff Act of 1930 (19 U.S.C. 1677(9) 
(A),(C),(D),(E),(F),or(G)). 
(5) N
O
N
A
C
T
I
O
N
A
B
L
E SUBSIDY.—^The term "nonactionable 
subsidj^' means a subsidy described in Article 8.1(b) of the 
Subsidies Agreement. 
(6) NOTIFIED SUBSIDY PROGRAM.—The term "notified sub-
sidy program" means a subsidy program which has been noti-
fied pursuant to Article 8.3 of the Subsidies Agreement. 
(7) SERIOUS ADVERSE EFFECTS.—^The term "serious adverse 
effects" has the meaning given that term in Article 9.1 of 
the Subsidies Agreement. 
(8) SUBSIDIES AGREEMENT.—The term "Subsidies Agree-
ment" means the Agreement on Subsidies and Countervailing 
Measures described in section 771(8) of the Tariff Act of 1930 
(19 U.S.C. 1677(8)). 
(9) SUBSIDIES COMMITTEE.—The term "Subsidies Commit-
tee" means the committee established pursuant to Article 24 
of the Subsidies Agreement. 
(10) SUBSIDY.—^The term "subsidy" has the meaning given 
that term in Article 1 of the Subsidies Agreement. 
(11) TRADE REPRESENTATIVE.—The term "Trade Represent-
ative" means the United States Trade Representative. 
(12) VIOLATION OF ARTICLE 8.—The term "violation of Arti-
cle 8" means the &ilure of a notified subsidy program or an 
individual subsidy granted pursuant to a notified subsidy pro-
gram to meet the applicable conditions and criteria described 
in Article 8.2 of the Subsidies Agreement 
(i) TREATMENT OF PROPRIETARY INFORMATION.—Notwithstand-
ing any other provision of law, the administering authority may 
provide the Trade Representative with a copy of proprietary 
information submitted to, or obtained by, the admmistenng author-
ity that the Trade Representative considers relevant in carrying 
out its responsibilities under this part The Trade Representative 
shall protect 
firom 
pubUc disclosure proprietary information obtained 
fi^m the administering authority under this part. 
SEC. 282. REVIEW OF SUBSIDIES AGREEMENT. 
19 USC 3572. 
(a) GENERAL OBJECTIVES.—^The general objectives of the United 
States under this part are— 
(1) to ensure that parts II and III of the Agreement on 
Subsidies and Countervailing Measures referred to in section 
101(d)( 
12) (hereafter in this section referred to as the "Subsidies 
Agreement^) are effective in disciplining the use of subsidies 
')i and in remedying the adverse effects of subsidies, and 
'f 
(2) to ensure that part IV of the Subsidies Agreement 
does not undermine the benefits derived from, any other part 
of that Agreement. 
(b) SPECIFIC OBJECTIVE.—The specific objective of the United 
States under this part shall be to create a mechanism which wiU 
108 STAT. 4928 
PUBLIC LAW 103-465—DEC. 8, 1994 
provide for an ongoing review of the operation of part IV of the 
Subsidies Agreement. 
(c) SUNSET OF NONCOUNTERVAILABLE SUBSIDIES PROVISIONS.— 
(1) IN GENERAL.—Subparagraphs (B), (C), (D), and (E) of 
section 771(5B) of the Tariff Act of 1930 shall cease to apply 
£is provided in subparagraph (G)(i) of such section, unless, 
before the date referred to in such subparagraph (G)(i)— 
(A) the Subsidies Committee determines to extend Arti-
cles 6.1, 8, and 9 of the Subsidies Agreement as in effect 
on the date on which the Subsidies Agreement enters iuto 
force or in a modified form, in accordance with Article 
31 of such Agreement, 
(B) the President consults with the Congress in accord-
ance with paragraph (2), and 
(C) an implementing bill is submitted and enacted 
into law in accordance with paragraphs (3) and (4). 
President. 
(2) 
CONSULTATION WITH CONGRESS 
BEFORE 
SUBSIDIES 
COMMITTEE AGREES TO EXTEND.—^Before a determination is 
made by the Subsidies Conmiittee to extend Articles 6.1, 8, 
and 9 of the Subsidies Agreement, the President shall consult 
with the Committee on Ways and Means of the House of 
Representatives and the Conmiittee on Finance of the Senate 
regarding such extension. 
(3) IMPLEMENTATION OF EXTENSION.— 
(A) NOTIFICATION AND SUBMISSION.—Any extension of 
subparagraphs (B), (C), (D), and (E) of section 771(5B) 
of the Tariff Act of 1930 shall take effect if (and only 
if)— 
(i) after the Subsidies Committee determines to 
extend Articles 6.1, 8, and 9 of the Subsidies Agree-
ment, the President submits to the committees referred 
to in paragraph (2) a copy of the document describing 
the terms of such extension, together with— 
(I) a draft of an implementing bUl, 
(II) a statement of any administrative action 
proposed to implement the extension, £uid 
(III) the supporting information described in 
subparagraph (C); and 
(ii) the implementing bill is enacted into law. 
(B) 
IMPLEMENTING 
BILL.—The 
implementing 
bill 
referred to in subparagraph (A) shall contain only those 
provisions that are necessary or appropriate to implement 
an extension of the provisions of section 771(5B) (B), (C), 
(D), and (E) of the Tariff Act of 1930 as in effect on 
the day before the date of the enactment of the implement-
ing bill or as modified to reflect the determination of the 
Subsidies Committee to extend Articles 6.1, 8, £ind 9 of 
the Subsidies Agreement 
(C) 
SUPPORTING 
INFORMATION.—The 
supporting 
information required under subparagraph (A)(i)(III) con-
sists of— 
(i) an explanation as to how the implementing 
bill and proposed administrative action will change 
or affect existing law; and 
(ii) a statement regarding— 
(I) how the extension serves the interests of 
United States conmierce, and 
• ••-• > %^ H'.' 
. 
>%''' 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4929 
(II) why the implementing bill and proposed 
administrative action is required or appropriate 
to csirry out the extension. 
(4) APPLICATION OF CONGRESSIONAL "FAST TRACK" PROCE-
DURES TO IMPLEMENTING BILL.—Section 151 of the Trade Act 
of 1974 (19 U.S.C. 2191) is amended— 
(A) in subsection (b)(1)— 
(i) by inserting ", or with respect to an extension 
described in section 282(c)(3) of the Uruguay Roimd 
Agreements Act," after "trade agreements", 
(ii) by striking "or section 1103(a)(1) of the Onmi-
bus Trade and Competitiveness Act of 1988" and insert-
ing ", section 1103(aXl) of the Omnibus Trade and 
Competitiveness Act of 1988, or section 282 of the 
• 
Uruguay Round Agreements Act", and 
(iii) by inserting "or such extension" in subpara-
graphs (A) and (C) after "agreements" each place it 
appears, and 
(B) in subsection (c)(1)— 
(i) by inserting "or section 282 of the Uruguay 
Round Agreements Act" after "section 102", and 
(ii) by inserting "or extension" afber "agreement^' 
each place it appears. 
(5) REPORT BY THE TRADE REPRESENTATIVE.—Not later than 
the date referred to in section 771(5B)(G)(i) of the Tariif Act 
of 1930, the Trade Representative shall submit to the Congress 
a report setting forth the provisions of law which were enacted 
to implement Articles 6.1, 8, and 9 of the Subsidies Agreement 
and snould be repealed or modified if such provisions are not 
extended. 
(d) REVIEW OF THE OPERATION OF THE SUBSIDIES AGREEMENT.— 
The Secretary of Commerce, in consultation with other appropriate 
departments and agencies of the Federal Government, shall under-
take an ongoing review of the operation of the Subsidies Agreement 
The review shall address— 
(1) the effectiveness of part II of the Subsidies Agreement 
in disciplining the use of suTbsidies which are prohibited under 
Article 3 of the Agreement, 
(2) the effectiveness of part III and, in particular. Article 
6.1 of the Subsidies Agreement, in remedying the adverse 
effects of subsidies which are actionable under tne Agreement, 
and 
(3) the extent to which the provisions of part IV of the 
Subsidies Agreement may have imdermined the benefits 
derived from other parts of the Agreement, and, in particular— 
(A) the extent to which WTO member countries have 
cooperated in reviewing and improving the operation of 
part IV of the Subsidies Agreement, 
(B) the extent to which the provisions of Articles 8.4 
£ind 8.5 of the Subsidies Agreement have been effective 
in identifying and remedying violations of the conditions 
and criteria described in Article 8.2 of the A^:^ement, 
and 
(C) the extent to which the provisions of Article 9 
of the Subsidies Agreement have been effective in remedy-
ing the serious adverse effects of subsidy programs 
described in Article 8.2 of the Agreement 
108 STAT. 4930 
PUBLIC LAW 103-465—DEC. 8, 1994 
^P**^^- 
Not later than 4 years and 6 months after the date of the 
enactment of this Act, the Secretary of Commerce shall submit 
to the Congress a report on the review required under this 
subsection. 
SEC. 283. AMENDMENTS TO TITLE VII OF THE TARIFF ACT OF 1930. 
(a) PREUMINARY DETERMINATION BY ADMINISTERING AUTHOR-
ITY.—Section 703(b) of the Tariflf Act of 1930 (19 U.S.C. 1671b(b)), 
as amended, is amended by adding at the end the following new 
paragraph: 
"(5) NOTIFICATION OF ARTICLE 8 VIOLATION.—If the onlv 
subsidy under investigation is a subsidy with respect to whicn 
the aaministering authority received notice from the Trade 
Representative of a violation of Article 8 of the Subsidies Agree-
ment, paragraph (1) shall be appHed by substituting '60 days' 
for '65 days"". 
(b) SUBSIDY PRACTICE DISCOVERED DURING A PROCEEDING.— 
Section 775 of the Tariff Act of 1930 (19 U.S.C. 1677d) is amended 
to read as follows: 
"SEC. 775. COUNTERVAILABLE 
SUBSIDY PRACTICES DISCOVERED 
DURING A PROCEEDING. 
"If, in the coiu^e of a proceeding under this title, the admin-
istering authority discovers a practice which appears to be a 
coimtervailable subsidy, but was not included in the matters alleged 
in a countervailing duty petition, or if the administering authority 
receives notice from the Trade Representative that a subsidy or 
subsidy program is in violation of Article 8 of the Subsidies Agree-
ment, then me administering authority— 
"(1) shall include the practice, subsidy, or subsidy program 
in the proceeding if the practice, subsidy, or subsidy program 
appears to be a countervailable subsidy with respect to the 
merchandise which is the subject of the proceeding, or 
"(2) shall transfer the imbrmation (other than confidential 
information) concerning the practice, subsidy, or subsidy pro-
gram to tiie library maintained under section 777(a)(1), if the 
practice, subsidy, or subsidy program appears to be a 
countervailable subsidy with respect to any other merchan-
dise.". 
(c) ADMINISTRATIVE REVIEWS.—Section 751 of the Tariff Act 
of 1930 (19 U.S.C. 1675), as amended, is amended by redesignating 
subsection (^) as subsection (h) and by inserting after subsection 
(f) the following new subsection: 
"(g) REVIEWS TO IMPLEMENT RESULTS OF SUBSIDIES ENFORCE-
MENT PROCEEDING.— 
"(1) VIOLATIONS OF ARTICLE 8 OF THE SUBSIDIES AGREE-
MENT.—If— 
"(A) the administering authority receives notice from 
the Trade Representative of a violation of Article 8 of 
the Subsidies Agreement, 
"(B) the administering authority has reason to believe 
that merchandise subject to an existing countervaihng duty 
order or suspended investigation is benefiting firam the 
subsidy or subsidy pro-am found to have been in violation 
of Article 8 of the Subsidies Agreement, and 
"(C) no review pursuant to subsection (a)(1) is in 
progress. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4931 
the administering authority shall conduct a review of the order 
or suspended investigation to determine whether the subject 
merchandise benefits from the subsidy or subsidy program 
found to have been in violation of Article 8 of the Subsidies 
Agreement If the administering authority determines that the 
subject merchandise is benefiting fix)m the subsidy or subsidy 
program, it shall make appropriate adjustments in the esti-
mated duty to be deposited or appropriate revisions to the 
terms of the suspension agreement. 
"(2) WITHDRAWAL OF SUBSIDY OR IMPOSITION OF COUNTER-
MEASURES.—If the Trade Representative notifies the admiu-
istering authority that, pursuant to Article 4 or Article 7 of 
the Subsidies Agreement— 
"(AXi) the United States has imposed coimtermeasures, 
and 
"(ii) such countermeasures are based on the effects 
ia the United States of imports of merchandise that is 
the subject of a countervailing duty order, or 
**(Bj a WTO member country has withdrawn 
a 
countervaUable subsidy provided witii respect to merchan-
dise subject to a countervailing duty order, 
the administering authority shall conduct a review to determine 
if the amount of the estimated duty to be deposited should 
be adjusted or the order should be revoked. 
"(3) EXPEDITED REVIEW.—The administering authority shall 
Federal 
conduct reviews under this subsection on an expedited basis, 
^fl'^^f' 
£tQd shall pubUsh the results of such reviews in the Federal 
^ 
'^^ '°" 
Register.". 
Subtitle C—Effective Date 
SEC. 291. EFFECTIVE DATE. 
19 USC 1671 
(a) IN GENERAL.—Except as provided in section 261, the amend-
ments made by this title shall take effect on the date described 
in subsection (b) and apply with respect to— 
(1) investigations initiated— 
(A) on the basis of petitions filed under section 702(b), 
732(b), or 783(b) of the Tariff Act of 1930 after the date 
described in subsection (b), or 
(B) by the administering authority under section 702(a) 
or 732(a) of such Act after such date, 
(2) reviews initiated imder section 751 of such Act— 
(A) by the administering authority or the Commission 
on their own initiative after such date, or 
(B) pursuant to a request filed after such date, 
(3) investigations initiated under section 753 of such Act 
aft«r such date, 
(4) petitions filed imder section 780 of such Act after such 
date, and 
(5) inquiries initiated under section 781 of such Act— 
(A) by the administering authority on its own initiative 
after such date, or 
(B) pursuant to a request filled after such date. 
(b) DATE DESCRIBED.—^The date described ia this subsection 
is the date on which the WTO Agreement (as defined in section 
2(9)) enters into force with respect to the United States. 
108 STAT. 4932 
PUBLIC LAW 103-465—DEC. 8, 1994 
TITLE III—ADDITIONAL 
IMPLEMENTATION OF AGREEMENTS 
Subtitle A—Safeguards 
Regulations. 
Federal 
Register, 
publication. 
SEC. 301. INVESTIGATIONS, DETERMINATIONS, AND RECOMMENDA-
TIONS BY INTERNATIONAL TRADE COMMISSION. 
(a) 
TREATMENT 
OF 
CONFIDENTIAL 
INFORMATION.—Section 
202(a)(8) of tlie Trade Act of 1974 (19 U.S.C. 2252(a)(8)) is amended 
by adding at the end the following: "The Commission may request 
that parties providing confidential business information furnish 
nonconfidential summaries thereof or, if such parties indicate that 
the information in the submission cannot be summarized, the rea-
sons why a summary cannot be provided. If the Commission finds 
that a request for confidentiaUty is not warranted and if the party 
concerned is either unwilling to make the information pubHc or 
to authorize its disclosiu*e in generaUzed or summarized form, the 
Commission may disregard the submission.". 
(b) ADMINISTRATIVE PROTECTIVE ORDERS.—Section 202 of the 
Trade Act of 1974 (19 U.S.C. 2252) is amended by adding at the 
end the following: 
"(i) LIMITED DISCLOSURE OF CONFIDENTIAL BUSINESS INFORMA-
TION UNDER PROTECTIVE ORDER.—The Commission shall promul-
gate regulations 
to provide access to confidential 
business 
information under protective order to authorized representatives 
of interested parties who are parties to an investigation under 
this section.". 
(c) NOTICE OF PROCEEDINGS.—Section 202(b) of the Trade Act 
of 1974 (19 U.S.C. 2252(b)) is amended by striking paragraphs 
(3) and (4) and inserting the following: 
"(3) The Commission shall publish notice of the commence-
ment of any proceeding under this subsection in the Federal 
Register and shall, within a reeisonable time thereafter, hold 
pubhc hearings at which the Commission shall afford interested 
parties and consumers an opportunity to be present, to present 
evidence, to conmient on the adjustment plan, if any, submitted 
imder subsection (a), to respond to the presentations of other 
parties and consumers, and otherwise to be heard.". 
(d) CRITICAL CIRCUMSTANCES.— 
(1) IN GENERAL.—Section 202(d)(2) of the Trade Act of 
1974 (19 U.S.C. 2252(d)(2)) is amended to read as follows: 
"(2)(A) When a petition filed under subsection (a) alleges 
that critical circumstances exist and requests that provisional 
reUef be provided under this subsection with respect to imports 
of the article identified in the petition, the Commission shall, 
not later than 60 days after the petition containing the request 
was filed, determine, on the basis of available information, 
whether— 
"(i) there is clear evidence that increased imports 
(either actual or relative to domestic production) of the 
article are a substantial cause of serious injury, or the 
threat thereof, to the domestic industry producing an article 
hke or directly competitive with the imported article; and 
^j**svV-'j 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4933 
"(ii) delay in taking action under this chapter would 
cause damage to that industry that would be difficult to 
repair. 
"(B) If the determinations imder subparagraph (A)(i) and 
(ii) are affirmative, tlie Commission shall find the amount 
or extent of provisional reUef that is necessary to prevent 
or remedy the serious injury. In carrying out this subparagraph, 
the Commission shall give preference to increasing or imposing 
a duty on imports, if such form of reUef is foEisible and would 
prevent or remedy the serious injury. 
"(C) The Conmiission shall immediately report to the Presi- Reports, 
dent its determinations under subparagraph (A)(i) and (ii) and, 
if the determinations are affirmative, the finding under 
subpEiragraph (B). 
"(D) Within 30 days after receiving a report fix)m the 
President. 
Commission under subparagraph (C) containing sm affirmative 
determination imder suTbparagraph (A)(i) and (ii), the President, 
if he considers provisional relief to be warranted and after 
taking into accoimt the finding of the Commission under 
subparagraph (B), shall proclaim, for a period not to exceed 
200 days, such provisional relief that the President considers 
necessary to prevent or remedy the serious injury. Such relief 
shall take the form of £in increase in, or the imposition of, 
a duty on imports, if such form of reUef is feasible and would 
prevent or remedy the serious injury.". 
(2) TIME LIMITS FOR DETERMINATIONS.—Section 202 of the 
Trade Act of 1974 (19 U.S.C. 2252) is amended— 
(A) in subsection (b)(2)— 
(i) in subparagraph (A) by inserting "(180 days 
if the petition alleges that critical circumstances exist)" 
after ^ 2 0 days"; and 
(ii) in subparagraph (B) by inserting "(210 days 
if the petition alleges that critical circumstances exist)" 
aft^r "150 days"; and 
(B) in subsection (f)(1) by inserting "(240 days if the 
petition alleges that critical circumstances exist)" after "180 
days". 
(3) ACTION BY THE PRESIDENT.—Section 203(a)(4) of 
the 
Trade Act of 1974 (19 U.S.C. 2253(a)(4)) is amended— 
(A) by striking "The" and inserting "(A) Subject to 
subparagraph (B), the"; 
(B) bv inserting after "60 days" the following: "(50 
days if the President has proclaimed provisional relief 
under section 202(d)(2)(D) with respect to the article con-
cerned)"; and 
(C) by striking "; except that" and all that follows 
through "received? and inserting a period and the 
following: 
"(B) If a supplemental report is requested under paragraph 
(5), the President shall take action under paragraph (1) witiun 
30 days after the supplemental report is received, except that, 
in a case in which the President has proclaimed provisional 
relief under section 202(d)(2)(D) with respect to the article 
concerned, action by the President under paragraph (1) may 
not be taken later than the 200th day after the provisional 
relief was proclaimed.". 
108 STAT. 4934 
PUBLIC LAW 103-465—DEC. 8, 1994 
(4) CONFORMING AMENDMENTS.—Section 202(d) of the 
Trade Act of 1974 (19 U.S.C. 2252(d)) is amended— 
(A) in paragraph (3)— 
(i) by striking "(2)(B)" and inserting "(2)(D)"; and 
(ii) Dy striking "subsection (b)(1)" and inserting 
"paragraph (2)(A)"; sind 
(B) in paragraph (4)(A)(i) by inserting "or (2)(D)" after 
"(1)(G)". 
(e) FACTORS IN MAKING DETERMINATIONS.—Section 202(c) of 
the Trade Act of 1974 (19 U.S.C. 2252(c)) is amended— 
(1) in paragraph (l)(B)(i) by inserting "productivity," after 
"wages,"; and 
(2) in paragraph (6)— 
(A) by amending subparagraph (A) to read as follows: 
"(A)(i) The term 'domestic industry* means, with 
respect to an article, the producers as a whole of the 
like or directiy competitive article or those producers whose 
collective production of the Uke or directiy competitive arti-
cle constitutes a major proportion of the total domestic 
production of such article. 
"(ii) The term 'domestic industry' includes producers 
. 
located in the United States insular possessions."; and 
(B) by adding at the end the following: 
"(C) The term 'serious injury' means a significant over-
all impairment in the position of a domestic industry. 
"(D) The term 'threat of serious injury* means serious 
injury that is clearly imminent. 
(f) LIMITATIONS ON INVESTIGATIONS.—Section 202(h) of the 
Trade Act of 1974 (19 U.S.C. 2252(h)) is amended by adding at 
the end the following: 
Federal 
"(3)(A) Not later than the date on which the Textiles Agree-
^ublication 
ment enters into force with respect to the United States, the 
^" ^ ^ ^ • 
Secretary of Commerce shall pubUsh in the Federal Register 
a Hst of all articles that are suDJect to the Textiles Agreement. 
An investigation may be conducted under this section concern-
ing imports of any article that is subject to the Textiles Agree-
ment only if the United States has integrated that article 
into GATT 1994 pursuant to the Textiles Agre^ent, as set 
forth in notices pubhshed in the Federal Register by the Sec-
retary of Commerce, including the notice published under sec-
tion 331 of the Uruguay Round Agreements Act. 
"(B) For piuposes of this paragraph: 
"(i) The term "Textiles Agreement' means the Agree-
ment on Textiles and Clothing referred to in section 
101(d)(4) of the Uruguay Round Agreements Act. 
"(ii) The term 'GATT 1994' has the meaning given 
that term in section 2(1)(B) of the Uruguay Round Agree-
ments Act". 
SEC. 302. ACTION BY PRESmENT AFTER DETERMINATION OF IMPORT 
INJURY. 
(a) AUTHORITY TO ENTER INTO INTERNATIONAL AGREEMENTS.— 
Section 203 of the Trade Act of 1974 (19 U.S.C. 2253) is amended— 
(1) in subsection (a)(3)(E) by striking "orderly marketing"; 
(2) in subsection (d)(1) by striking "orderly marketing 
agreements" and inserting "agreements described in subsection 
(a)(3)(E)"; 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4935 
(3) in subsection (f)— 
(A) in the subsection heading by stinking "ORDERLY 
MARKETING AND OTHER" and inserting "CERTAIN"; 
(B) in paragraph (1)— 
(i) by sti*iking "orderly marketing agreements" the 
first place it appears and inserting "agreements of 
the type describea in subsection (aX3)(E)"; and 
(ii) by striking "orderly marketing agreements with 
foreign countries and inserting "agreements of the 
type described in subsection (aX3XE)"; and 
(Cj in paragraph (2) by striking "orderly marketing 
agreement implemented under subsection (a)" and insertLog 
"agreement implemented under subsection (aX3XE)"; and 
(4) in subsection (gX2)— 
(A) in the first sentence by striking "orderly marketing 
or other"; and 
(B) in the second sentence— 
(i) by striking "orderly marketing agreement" and 
inserting "agreement of the type described in sub-
section (a)(3)(E) that is"; and 
(ii) by striking "agreements" and 
inserting 
"agreement", 
(b) LIMITATIONS ON ACTIONS.— 
(1) DURATION OF ACTIONS.—Section 203(eXl) of the Trade 
Act of 1974 (19 U.S.C. 2253(eXl)) is amended to read as follows: 
"(1)(A) Subject to subparagraph (B), the duration of the 
period in which an action taken under this section may be 
in effect shall not exceed 4 years. Such period shall include 
the period, if any, in which provisiomd relief under section 
202(d) was in effect. 
"(B)(i) Subject to clause (ii), the President, after receiving 
an af&rmative determination fix)m the Commission under sec-
tion 204(c) (or, if the Commission is equally divided in its 
determination, a determination which the President considers 
to be an afSnnative determination of the Commission), may 
extend the effective period of any action under this section 
ifthe President determines that— 
"(I) the action continues to be necessary to prevent 
or remedy the serious injury; and 
"(II) there is evidence that the domestic industry is 
making a positive adjustment to import competition. 
"(ii) The effective period of any action tmder this section, 
including any extensions thereof, may not, in the aggregate, 
exceed 8 years.". 
(2) LIMITATION ON QUANTITATIVE RESTRICTIONS.—Section 
203(eX4) of the Trade Act of 1974 (19 U.S.C. 2263(eX4)) is 
cunended to read as foUows: 
"(4) Any action taken \mder this section proclaiming a 
quantitative restriction shall permit the importation of a quan-
tity or value of the article which is not less th£m. the average 
quantity or value of such article entered into the United States 
in the most recent 3 years that are representative of imports 
of such sirticle and for which data are available, unless the 
President finds that the importation of a different quantity 
or value is clearly justified in order to prevent or remedy 
the serious injury.". 
108 STAT. 4936 
PUBLIC LAW 103-465—DEC. 8, 1994 
(3) PHASING-DOWN OF ACTIONS.—Section 203(e)(5) of the 
Trade Act of 1974 (19 U.S.C. 2253(e)(5)) is amended to read 
as follows: 
"(5) An action described in subsection (a)(3)(A), (B), or 
(C) that has an effective period of more than 1 year shall 
be phsised down at regular intervals during the period in which 
the action is in effect . 
(4) LIMITATIONS ON NEW ACTIONS AND INVESTIGATIONS OF 
SAME ARTICLE.—(A) Section 203(e) of the Trade Act of 1974 
(19 U.S.C. 2253(e)) is amended by adding at the end the follow-
ing: 
"(7)(A) If an article was the subject of an action under 
subparagraph (A), (B), (C), or (E) of subsection (a)(3), no new 
action may be taken imder any of those subparagraphs with 
respect to such article for— 
**(i) a period beginning on the date on which the pre-
vious action terminates that is equal to the period in which 
the previous action was in effect, or 
"(ii) a period of 2 yeara beginning on the date on 
which the previous action terminates, 
whichever is greater. 
"(B) Notwithstanding subparagraph (A), if the previous 
action under subparagraph (A), (B), (C), or (E) of subsection 
(a)(3) with respect to an article was in effect for a period 
of 180 days or less, the President may take a new action 
under any of those subparagraphs with respect to such article 
if— 
*(i) at least 1 year has elapsed since the previous 
action went into effect; and 
"(ii) an action described in any of those subparagraphs 
has not been taken with respect to such article more than 
twice in the 5-year period immediately preceding the date 
on which the new action with respect to such article first 
beconQ.es effective.". 
(B) Section 202(h)(2) of the Trade Act of 1974 (19 U.S.C. 
2252(h)(2)) is amended to read as follows: 
"(2) No new investigation shall be conducted with respect 
to an sirticle that is or has been the subject of an action 
under section 203(a)(3)(A), (B), (C), or (E) if the last day on 
which the President could take action under section 203 in 
the new investigation is a date earUer than that permitted 
under section 203(e)(7).''. 
(c) REPORTS ON MONITORING.—Section 204(a) of the Trade Act 
19 use 2254. 
of 1974 (19 U.S.C. 2354(a)) is amended— 
(1) by amending paragraph (2) to read as follows: 
"(2) If the initial period during which the action taken 
xmder section 203 is in effect exceeds 3 years, or if an extension 
of such action exceeds 3 years, the Conmiission shall submit 
a report on the results of the monitoring under paragraph 
(1) to the President and to the Congress not later than tne 
date that is the mid-point of the initial period, and of each 
such extension, during which the action is in effect"; and 
(2) in paragraph (4) by striking "extension,". 
(d) INVESTIGATION OF EXTENSION OF ACTION.—Section 204 
of 
the Trade Act of 1974 (19 U.S.C. 2254) is amended— 
(1) by redesignating subsections (c) and (d) as subsections 
(d) and (e), respectively; and 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4937 
(2) by inserting after subsection (b) the following: 
"(c) EXTENSION OF ACTION.— 
"(1) Upon request of the President, or upon petition on 
behalf of me industry concerned filed with the Commission 
not earlier than the date which is 9 months, and not later 
than the date which is 6 months, before the date any action 
taken under section 203 is to terminate, the Commission shall 
investigate to determine whether action under section 203 
continues to be necessary to prevent or remedy serious rmury 
and whether there is evidence that the industry is making 
a positive adjustment to import competition. 
"(2) The Commission snail publish notice of the commence-
ment of any proceeding under this subsection in the Federal 
Register and shall, within a reasonable time thereafter, hold 
a public hearing at which the Conmiission shall 
afford 
interested parties and consumers an opportunity to be present, 
to present evidence, and to respond to the presentations of 
other parties and consumers, and otherwise to be heard. 
"(3) The Commission shsdl transmit to the President a 
report on its investigation and determination under this sub-
section not later than 60 days before the action under section 
203 is to terminate, \mless the President specifies a different 
date.". 
SEC. 303. MISCELLANEOUS AMENDMENTS. 
Title II of the Trade Act of 1974 is amended as follows: 
(1) Section 202(a)(2)(B)(ii) (19 U.S.C. 2252(aX2)(B)(ii)) is 
amended by striking ", or at any time before the 150th day 
after the date of filing be amended to request,". 
(2) Section 202(b)(1)(A) (19 U.S.C. 2252(b)(1)(A)) is 
amended by striking "(b)" and inserting "(a)". 
(3) Section 202(d)(1) (19 U.S.C. 2252(d)(1)) is amended— 
(A) in subparagraph (C)(i) by striking "paragraph (2)" 
£ind inserting 'Subparagraph (B)"; and 
(B) by striking "or threat thereof each place it appears 
in subparagraphs (E) and (G). 
(4) Section 202(d)(4)(A)(i) (19 U.S.C. 2252(d)(4)(A)(i)) is 
amended by striking "203(a)'' and inserting "202(b)''. 
(5) Section 202(c)(6) (19 U.S.C. 2252(c)(6)) is amended by 
striking "subsection" and inserting "section". 
(6) Section 202(f)(2)(G)(ii) (19 U.S.C. 2252(f)(2)(G)(ii)) is 
amended by striking "is" and inserting "are". 
(7) Section 203(a)(2)(C) (19U.S.C. 
2253(a)(2)(C)) 
is 
amended by striking "201(b)" and inserting "202(a)". 
(8) Section 203(c) (19 U.S.C. 2253(c)) is amended by striking 
"(c)(2)" and inserting "(d)(2)". 
(9) Section 203(e)(2) (19 U.S.C. 2253(e)(2)) is amended— 
(A) by striking "may be taken under subsection 
(a)(1)(A), (B), or (C) or \mder section 202(d)(2)(B)" and 
inserting "of a type described in subsection (a)(3)(A), (B), 
or (C) may be taken under subsection (a)(1), under section 
202(d)(1)(G), or under section 202(d)(2)(D)"; and 
(B) by striking "or threat thereof". 
(10) Section 203(e)(6)(B) (19 U.S.C. 2253(e)(6)(B)) is 
amended— 
(A) by striking "203(c)" and inserting "202(e)"; and 
(B) by striking ^03(a)" and inserting "202(b)". 
Federal 
Register, 
publication. 
Reports. 
108 STAT. 4938 
PUBLIC LAW 103-465—DEC. 8,1994 
19 use 2252 
SEC. 304. EFFECTIVE DATE. 
(a) IN GENERAL.—Except as provided in subsection (b), this 
subtitle and the amendments made by this subtitle take effect 
on the date on which the WTO Agreement enters into force with 
respect to the United States. 
(b) SECTION 301(b).—The amendment made by section 301(b) 
takes effect on the date of the enactment of this Act. 
Subtitle B—^Foreign Trade Barriers and 
Unfair Trade Practices 
SEC. 
311. roENTIFICATION OF 
FOREIGN ANTICOMPETITIVE 
PRACTICES. 
(a) REPORT TO CONGRESS.— 
(1) CONTENTS OF REPORT.—Section 181(bX2) of the Trade 
Act of 1974 (19 U.S.C. 2241(b)(2)) is amended— 
(A) in subparagraph (A) by striking **or" after the 
conmia; 
(B) iu subparagraph (B) by striking the period and 
inserting ", or''; and 
(C) by adding £ifter subparagraph (B) the following: 
"(CJ) a section on foreign anticompetitive practices, the 
toleration of which by foreign governments is adversely 
affecting exports of United States goods or services.". 
(2) ASSISTANCE OF OTHER AGENCIES.—Section 181(c) of the 
Trade Act of 1974 (19 U.S.C. 2241(c)) is amended by adding 
at tihe end of paragraph (1) the following: "In preparing the 
section of the report required by subsection (bX2)(C), the Trade 
Representative shall consult in particular with the Attorney 
Greneral.". 
SEC. 312. CONSULTATION WITH COMMTTTEES. 
Section 181(b)(3) of tiie Trade Act of 1974 (19 U.S.C. 2241(b)(3)) 
is amended by adding at the end the following: "After the submis-
sion of the report required by paragraph (1), the Trade Representa-
tive shall also consult perioaicaUv with, and take into account 
the views of, the committees described in that paragraph regarding 
means to address the foreign trade barriers identified in the report, 
including the possible initiation of investigations under section 302 
or other trade actions.". 
SEC. 313. IDENTIFICATION OF COUNTRIES THAT DENY PROTECTION 
OF INTELLECTUAL PROPERTY RIGHTS. 
Section 182 of the Trade Act of 1974 (19 U.S.C. 2242) is 
amended— 
(1) in subsection (b) by adding at the end the following: 
"(4) In identifying foreign countries under paragraphs (1) 
and (2) of subsection (a), the Trade Representative shall take 
into account— 
"(A) the history of intellectual property laws and prac-
tices of the foreign country, includmg any previous ioenti-
fication imder subsection (a)(2), and 
"(B) the history of efforts of the United States, and 
the response of the foreign country, to achieve adequate 
and effective protection and enforcement of intellectual 
property rights."; sind 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4939 
(2) in subsection (d)— 
(A) in paragraph (3) by amending the matter preceding 
subparagraph (A) to read as follows: 
"(3) A fereign country denies fair and equitable market 
access if the foreign country effectively denies access to a mar-
ket for a product protected by a copyright or related right, 
patent, trademark, mask work, trade secret, or plant breeder's 
right, through the use of laws, procedures, practices, or regula-
tions which—"; and 
(B) by adding at the end the following: 
"(4) A foreign coimtry may be determined to deny adequate 
and effective protection of intellectual property rights, notwith-
standing the fact that the foreign country may be m comphance 
with the specific obhgations of the Agreement on Trade-Related 
Aspects of Intellectual Property Rights referred to in section 
101(d)(15) of the Uruguay Round Agreements Act"; £ind 
(3) by adding at the end the following: 
"(g) ANNUAL REPORT.—The Trade Representative shall, by not 
later than the date by which countries are identified under sub-
section (a), transmit to the Committee on Ways and Means of 
the House of Representatives and the Committee on Finance of 
the Senate, a report on actions taken under this section dining 
the 12 months preceding such report, and the reasons for such 
actions, including a description of progress made in achieving 
improved intellectual property protection and market access for 
persons relying on intellectual property rights.". 
SEC. 314. AMENDMENTS TO TITLE m OF THE TRADE ACT OF 1974. 
(a) SCOPE OF AUTHORITY.— 
(1) IN GENERAL.—Subsections (a)(1) and (b)(2) of section 
301 of the Trade Act of 1974 (19 U.S.C. 2411(a)(1) and (b)(2)) 
are each amended by adding the following sentence at the 
end: 
"Actions may be taken that are within the power of the President 
with respect to trade in any goods or services, or with respect 
to any other area of pertinent relations with the foreign country.". 
(2) IMPORT RESTRICTIONS.—Section 301(c)(5) of the Trade 
Act of 1974 (19 U.S.C. 2411(c)(5)) is amended by striking the 
matter preceding subpsiragraph (B) and inserting the following: 
"(5) If the Trade Representative determines that actions 
to be taken under subsection (a) or (b) are to be in the form 
of import restrictions, the Trade Representative shall— 
"(A) give preference to the imposition of duties over 
the imposition of other import restrictions, and". 
(b) RELATIONSHIP WITH OTHER AUTHORITIES.—Section 301(c) 
of the Trade Act of 1974 (19 U.S.C. 2411(c)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (B), by striking "or" afler the 
semicolon at the end; 
(B) by redesignating subparagraph (C) as subpara-
graph (D); and 
(C) by inserting after subpEiragraph (B) the following: 
"(C) in a case in which the act, poUcy, or practice 
also fails to meet the eHgibUity criteria for receiving duty-
free treatment under subsections (b) and (c) of section 
502 of this Act, subsections (b) and (c) of section 212 
of the Caribbean Basin Economic Recovery Act (19 U.S.C. 
108 STAT. 4940 
PUBLIC LAW 103-465—DEC. 8, 1994 
2702(b) and (c)), or subsections (c) and (d) of section 203 
of the Andean Trade Preference Act (19 U.S.C. 3202(c) 
and (d)), withdraw, Umit or suspend such treatment under 
such provisions, notwithstanding the provisions of sub-
section (a)(3) of this section; oi^'. 
(c) DEFINITION OF AN UNREASONABLE ACT, POUCY, OR PRAC-
TICE.—Section 301(d)(3) of the Trade Act of 1974 (19 U.S.C. 
2411(d)(3)) is amended— 
(1) in subparagraph (B)(i) by striking subclauses (II) and 
(III) and inserting the following: 
"(II) provision of adequate and effective protection 
of intellectual property rights notwithstanding the fact 
that the foreign country may be in compUance with 
the specific obligations of the Agreement on Trade-
Related Aspects of Intellectual Property Rights referred 
to in section 101(d)(15) of the Uruguay Roimd Agree-
ments Act, 
"(III) nondiscriminatory market access opportuni-
ties for United States persons that rely upon intellec-
tual property protection, or 
(IV) market opportunities, including the toleration 
by a foreign government of systematic anticompetitive 
activities by enterprises or among enterprises in the 
forei^ coimtry that have the effect of restricting, on 
a basis that is inconsistent with commercial consider-
ations, access of United States goods or services to 
a foreign market,"; and 
(2) by adding at the end the following: 
"(F)(i) For the purposes of subparagraph (B)(i)(II), adequate 
and effective protection of intellectual property rights includes 
adequate £ind effective means under the laws of the foreign 
country for persons who are not citizens or nationals of such 
country to secure, exercise, and enforce rights and enioy 
commercial benefits relating to patents, trademarks, copyrights 
and related rights, mask works, trade secrets, and plant breed-
er's rights. 
"(li) For purposes of subparagraph (B)(i)(IV), the denial 
of fair 
and 
equitable 
nondiscriminatorv 
market 
access 
opportunities includes restrictions on market access related 
to the use, exploitation, or enjoyment of commercial benefits 
derived from exercising intellectual property rights in protected 
works or fixations or products embodying protected works.". 
(d) TIME LIMITS FOR DETERMINATIONS OF UNFAIR TRADE PRAC-
TICES.—Section 304(a) of the Trade Act of 1974 (19 U.S.C. 2414(a)) 
is amended— 
(1) in subparagraph (A) of paragraph (2), by striking "(other 
than the agreement on subsidies and countervaUing measures 
described in section 2(c)(5) of the Trade Agreements Act of 
1979)", 
(2)(A) in subparagraph (A) of psiragraph (3), by inserting 
"does not consider that a trade agreement, including the Agree-
ment on Trade-Related Aspects of Intellectual 
Property 
(referred to in section 101(d)(15) of the Uruguay Round Agree-
ments Act), is involved or" after "the Trade Representative" 
the first place it appears, and 
(B) in subparagraph (B) of paragraph (3), in the matter 
preceding clause (i), by striking "any investigation initiated 
' • ; ? > . ' - A x H 5 i « ^ — • 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4941 
by reason of section 302(b)(2)" and inserting "an investigation 
initiated by reason of section 302(b)(2) (other than an investiga-
tion involving a trade agreement)", and 
(3) in paragraph (4), by striking "(other than the agreement 
on subsidies and countervailing measures described in section 
2(c)(5) of the Trade Agreements Act of 1979)". 
(e) MONITORING OF FOREIGN COMPLIANCE.—Subsections (a) and 
(b) of section 306 of the Trade Act of 1974 (19 U.S.C. 2416) are 
amended to read as follows: 
"(a) IN GENERAL.—^The Trade Representative shall monitor the 
implementation of each measure undertaken, or agreement that 
is entered into, by a foreign country to provide a satisfactory resolu-
tion of a matter subject to investigation under this chapter or 
subject to dispute settiement proceedings to enforce the rights of 
the United States under a trade agreement providing for such 
proceedings. 
"(b) FURTHER ACTION.— 
"(1) IN GENERAL.—If, on the basis of the monitoring carried 
out under subsection (a), the Trade Representative considers 
that a foreign country is not satisfactorily implementing a 
measure or agreement referred to in subsection (a), the Trade 
Representative shall determine what further action the Trade 
Representative shall take under section 301(a). For purposes 
of section 301, any such determination shaU be treated as 
a determination made imder section 304(a)( 1).". 
"(2) WTO DISPUTE SETTLEMENT RECOMMENDATIONS.—If the 
measure or agreement referred to in subsection (a) concerns 
the implementation of a recommendation made pursuant to 
dispute 
settiement proceedings under the World 
Trade 
Organization, and the Trade Representative considers that the 
foreign country has failed to implement it, the Trade Represent-
ative shsdl make the determination in paragraph (1) no later 
tiaan 30 days after the expiration of the reasonable period 
of time provided for such implementation under paragraph 
21'«of the Understanding on Rules and Procedures Governing 
the Settiement of Disputes that is referred to in section 
101(d)(16) of the Uruguay Round Agreements Act". 
(f) EXTENSION OF SECTION 310 OF THE TRADE ACT OF 1974.— 
Section 310 of the Trade Act of 1974 (19 U.S.C. 2420) is amended 
to read as follows: 
"SEC. 310. 
roENTIFICATION 
OF TRADE EXPANSION PRIORITIES. 
"(a) IDENTIFICATION.— 
"(1) Within 180 days after the submission in calendar year 
1995 of the report required by section 181(b), the Trade Rep-
resentative shall— 
"(A) review United States trade expansion priorities, 
"(B) identify priority foreign country practices, the 
elimination of which is likely to have the most significant 
potential to increase United States exports, either directiy 
or through the estabhshment of a beneficial precedent, 
and 
"(C) submit to the Committee on Finance of the Senate 
Repoi-ts. 
and the Committee on Ways and Means of the House 
S^^'^^ 
of Representatives and publish in the Federal Regfister 
publfcation. 
a report on the priority foreign country practices identified. 
108 STAT. 4942 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(2) In identifying priority foreign countiy practices under 
paragraph (1) of this section, the Trade Representative shall 
take into account all relevant factors, including— 
"(A) the major barriers and trade distorting practices 
described in the National Trade Estimate Report required 
under section 181(b); 
"(B) the trade agreements to which a foreign country 
is a party and its compliance with those agreements; 
(C) the medium- and long-term implications of foreign 
government procurement plans; and 
"(D) the international competitive position and export 
potential of United States products and services. 
(3) The Trade Representative may include in the report, 
if appropriate— 
"(A) a description of foreign country practices that may 
in the fliture warrant identification as priority foreign coun-
try practices; and 
"(B) a statement about other foreign coimtry practices 
that were not identified because they are already being 
addressed by provisions of United States trade law, by 
existLiag bilateral trade agreements, or as part of trade 
negotiations with other countries and progress is being 
made toward the elimination of such practices. 
"(b) INITIATION OF INVESTIGATIONS.—By no later than the date 
which is 21 days after the date on which a report is submitted 
to the appropriate congressional committees under subsection (a)(1), 
the Trade Representative shail initiate under section 302(b)(1) 
investigations imder this chapter with respect to all of the priority 
foreign country practices identified. 
"(c) AGREEMENTS FOR THE ELIMINATION OF BARRIERS.—In the 
consultations with a foreign country that the Trade Representative 
is required to request under section 303(a) with respect to an 
investigation initiated by reason of subsection (b), the Trade Rep-
resentative shall seek to negotiate an agreement that provides 
for the elimination of the practices that are the subject of the 
investigation as quickly as possible or, if elimination of the practices 
is not feasible, an agreement that provides for compensatory trade 
benefits. 
"(d) REPORTS.—^The Trade Representative shall include in the 
semiannual report required by section 309 a report on the status 
of £uiy investigations initiated pursuant to subsection (b) and, where 
appropriate, the extent to which such investigations have led to 
increased opportunities for the export of products and services 
of the United States.". 
19 use 3581. 
SEC. 315. OBJECTIVES IN INTELLECTUAL PROPERTY. 
It is the objective of the United States— 
(1) to accelerate the implementation of the Agreement on 
Trade-Related Aspects of Intellectual Property Rights referred 
to in section 101(d)(15), 
(2) to seek enactment and effective implementation by for-
eign countries of laws to protect and enforce intellectual prop-
erty rights that supplement and strengthen the stEindards of 
the Agreement on Trade-Related Aspects of Intellectual Prop-
erty Rights referred to in section 101(d)(15) and the North 
American Free Trade Agreement and, in particular— 
" ^ . " ^ 2 ^ 
•*4,"'' ' ^ 
'*'x 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4943 
(A) to conclude bilateral and multilateral agreements 
that create obligations to protect and enforce intellectual 
property rights that cover new and emerging technologies 
and new methods of transmission and distribution, and 
(B) to prevent or eliminate discrimination with respect 
to matters affecting the availabiUty, acquisition, scope, 
maintenance, use, and enforcement of intellectual property 
rights, 
(3) to secure fair, equitable, and nondiscriminatory market 
access opportunities for United States persons that rely upon 
intellectual property protection, 
(4) to take an active role in the development of the intellec-
tual property regime under the World Trade Orgsmization to 
ensure that it is consistent with other United States objectives, 
and 
(5) to take an active role in the World Intellectual Property 
Organization (WIH)) to develop a cooperative and mutually 
supportive relationship between the World Trade Organization 
and WIPO. 
SEC. 316. EFFECTIVE DATE. 
19 USC 3581 
(a) IN GENERAL.—Except as provided in subsection (b), this 
^°^' 
subtitie and the amendments made by this subtitie take effect 
on the date on which the WTO Agreement enters into force witii 
respect to the United States. 
(b) SECTION 314(f).—The amendment made by section 314(f) 
takes effect on the date of the enactment of this Act. 
Subtitle C—Unfair Practices in Import 
Trade 
SEC. 321. UNFAIR PRACTICES IN IMPORT TRADE. 
(a) AMENDMENTS TO SECTION 337 OF THE TARIFF ACT OF 1930.— 
Section 337 of the Tariff Act of 1930 (19 U.S.C. 1337) is amended 
as follows: 
(1) INVESTIGATION.—Subsection (b) is amended— 
(A) by striking "; TIME LIMITS" in the heading; 
(B) in paragraph (1) by striking aU tliat follows the 
second sentence and inserting the foUowing: "The Commis-
sion shall conclude any sucn investigation and make its 
determination under this section at the earUest practicable 
time after the date of pubHcation of notice of such investiga-
tion. To promote expeditious adjudication, the Commission 
shall, within 45 days after an investigation is initiated, 
establish a target date for its final determination."; and 
(C) in paragraph (3)— 
(i) in the nrst sentence— 
(I) by striking "the Tariff Act of 1930" and 
insertine "this Act ; and 
(II) by striking "such Act" and inserting "such 
subtitie"; and 
(ii) by striking the fifth sentence. 
(2) DETERMINATION; REVIEW.—Subsection (c) is amended— 
(A) in the first sentence by striking "a settlement agree-
ment" and inserting "an agreement between the private 
108 STAT. 4944 
PUBLIC LAW 103-465—DEC. 8, 1994 
parties to the investigation, including an agreement to 
present the matter for EU'bitration''; 
(B) by inserting the following after the third sentence: 
"A respondent may raise any counterclaim in a manner 
prescribed by the Commission. Inmiediately after a counter-
claim is received by the Commission, the respondent raising 
such counterclaim shall file a notice of removal with a 
United States district court in which venue for any of 
the counterclaims raised by the party would exist under 
section 1391 of title 28, United States Code. Any counter-
claim raised pursuant to this section shall relate back 
to the date of the original complaint in the proceeding 
before the Commission. Action on such counterclaim shall 
not delay or affect the proceeding imder this section, includ-
ing the legal and equitable defenses that may be raised 
under this subsection."; and 
(C) by adding at the end the following: "Determinations 
by the Commission under subsections (e), (f), and ^) with 
respect to forfeiture of bonds and imder subsection (h) 
witn respect to the imposition of sanctions for abuse of 
discovery or abuse of process shall also be reviewable in 
accordance with section 706 of title 5, United States Code.". 
(3) ENTRY UNDER BOND.—Subsection (e) is amended— 
(A) in the last sentence of paragraph (1) by striking 
"determined by the Commission" and all that follows 
through the end of the sentence and inserting "prescribed 
by the Secretary in an amoimt determined by the Commis-
sion to be sufficient to protect the complainant firom any 
injury. If the Conmiission later determines that the 
respondent has violated the provisions of this section, the 
bond may be forfeited to the complainant"; 
(B) by adding at the end of paragraph (2) the following: 
"If the Commission later determines tnat the respondent 
has not violated the provisions of this section, the bond 
may be forfeited to the respondent."; and 
(C) by adding at the end the following new paragraph: 
"(4) The Conmiission shall prescribe the terms and conditions 
under which bonds may be forfeited under paragraphs (1) and 
(2).". 
(4) 
CEASE AND DESIST 
ORDERS.—Subsection (f)(1) 
is 
amended by adding at the end the following: "If a temporary 
cease and desist order is issued in addition to, or in lieu 
of, an exclusion order under subsection (e), the Commission 
may require the complainant to post a bond, in an amount 
determined by the Commission to be sufficient to protect the 
respondent from any injury, as a prerequisite to the issuance 
of an order under this subsection. If the Commission later 
determines that the respondent has not violated the provisions 
of this section, tJie bond may be forfeited to the respondent. 
The Commission shall prescribe the terms and conditions under 
which the bonds may be forfeited under this paragraph.". 
(5) 
CONDITIONS APPLICABLE FOR GENERAL EXCLUSION 
ORDERS.—(A) Subsection (d) is amended— 
(i) by inserting "(1)" before "If; 
(ii) in the first sentence by striking "there is violation" 
and inserting "there is a violation"; and 
(iii) by adding at the end the following new paragraph: 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4945 
"(2) The authority of the Commission to order an exclusion 
from entry of articles shall be limited to persons determined by 
the Commission to be violating this section unless the Commission 
determines that— 
"(A) a general exclusion from entry of articles is necessary 
to prevent circumvention of an exclusion order limited to prod-
ucts of named persons; or 
"(B) there is a pattern of violation of this section and 
it is difficult to identify the source of infringing products.". 
(B) Subsection (g)(2) is amended— 
(i) by strikuig "and" at the end of subparagraph (A); 
(ii) by striking the period at the end of subparagraph 
(B) and inserting , and"; and 
(iii) by adding after subparagraph (B) the following: 
"(C) the requirements of subsection (d)(2) are met.". 
(6) ENTRY UNDER BOND AFTER REFERRAL TO THE PRESI-
DENT.—Subsection <jX3) is amended by striking "shall be enti-
tied to entry under bond" and aU that follows through the 
end of the sentence and inserting "shsdl, until such determina-
tion becomes final, be entitied to entry under bond prescribed 
by the Secretary in an amount determined by the Commission 
to be sufficient to protect the complainant from any injury. 
If the determination becomes final, the bond may be forfeited 
to the complainant The Conmussion shall prescribe the terms 
and conditions under which bonds may be forfeited under this 
paragraph.". 
(7) ACCESS TO CONFIDENTIAL INFORMATION.—Subsection 
(n)(2) is amended— 
(A) by amending subparagraph (A) to read as follows: 
"(A) an officer or employee of the Conunission who is 
directly concerned vdth— 
"(i) carrying' out the investigation or related proceeding 
in connection with which the information is submitted, 
"(ii) the administration of a bond posted pursuant to 
subsection (e), (f), or (j), 
"(iii) tiie administration or enforcement of an exclusion 
order issued pursuant to subsection (d), (e), or (g), a cease 
and desist order issued piu^uant to subsection (f), or a 
consent order issued pursuant to subsection (c), 
"(iv) proceedings for the modification or rescission of 
a temporary or permanent order issued under subsection 
(d), (e), (f), (g), or (i), or a consent order issued under 
this section, or 
"(v) maintaining the administrative record of the inves-
tigation or related proceeding,"; and 
(B) by amending subparagraph (C) to read as follows: 
"(C) an officer or employee of the United States Customs 
Service who is directiy involved in administering an exclusion 
fix)m entry under subsection (d), (e), or (g) resulting fix)m the 
investigation or related proceeding in connection witb which 
the information is submitted.". 
(8) TECHNICAL -AMENDMENT.—Subsection (1) is amended by 
striking "Claims Court" and inserting "Court of Federal 
Claims". 
(b) AMENDMENTS TO TITLE 28, UNITED STATES CODE.— 
(1) STAY OF ACTIONS.— 
108 STAT. 4946 
PUBLIC LAW 103-465—DEC. 8, 1994 
(A) IN GENERAL.—Chapter 111 of title 28, United States 
Code, is amended by adding at the end the following new 
section: 
^§ 1659. Stay of certain actions pending disposition of related 
proceedings before the United States Inter-
national 'nrade Commission 
"(a) STAY.—In a civil action involving parties that are also 
parties to a proceeding before the United States International Trade 
Commission under section 337 of the TaiiS Act of 1930, at the 
request of a party to the civil action that is also a respondent 
in the proceeding before the Commission, the district court shall 
stay, until the determination of the Commission becomes final, 
proceedings in the civil action with respect to any claim that 
involves tiie same issues involved in the proceeding before the 
Conunission, but only if such request is made within— 
"(1) 30 da3rs after the party is named as a respondent 
in the proceeding before the Conmiission, or 
"(2) 30 days after the district court action is filed, 
whichever is later. 
"(b) USE OF COMMISSION RECORD.—Notwithstanding section 
337(n)(l) of the Tariff Act of 1930, after dissolution of a stay 
under subsection (a), the record of the proceeding before the United 
States International Trade Commission shall be transmitted to 
the district court and shall be admissible in the civil action, subject 
to such protective order as the district court determines necessary, 
to the extent permitted under the Federal Rules of Evidence and 
the Federal Rides of Civil Procedure.". 
(B) CLERICAL AMENDMENT.—The table of sections for 
chapter 111 of titie 28, United States Code, is amended 
by adding at the end the following new item: 
"1669. Stay of certain actions pending disposition of related proceedings before the 
United States International Trade Commission.". 
(2) COUNTERCLAIMS.—Section 1446 of titie 28, United 
States Code, is amended by adding at the end the following: 
"(f) With respect to any coimterclaim removed to a district 
court pursuant to section 337(c) of the Tariff Act of 1930, the 
district court shall resolve such counterclaim in the same manner 
as an original complaint under the Federal Rules of Civil Procedure, 
except that the payment of a filing fee shall not be required in 
such cases and the counterclaim shall relate back to the date 
of the original complaint in the proceeding before the International 
Trade Commission imder section 337 of that Act". 
(3) JURISDICTION.— 
(A) IN GENERAL.—Chapter 85 of titie 28, United States 
Code, is amended by adding at the end the following: 
'^§1368. Counterclaims in unfair practices in international 
trade. 
The district coiuts shall have original jurisdiction of any civil 
action based on a counterclaim raised pursuant to section 337(c) 
of the Tariff Act of 1930, to the extent that it arises out of the 
transaction or occurrence that is the subject matter of the opposing 
party's claim in the proceeding under section 337(a) of that Act". 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4947 
(B) CLERICAL AMENDMENT.—^The table of sections for 
chapter 85 of title 28, United States Code, is amended 
by adding at the end the following: 
"1368. Counterclaims in unfair practices in international trade.". 
SEC. 322. EFFECTIVE DATE. 
The amendments made by this subtitle apply— 
(1) with respect to complaints filed under section 337 of 
the Tariff Act of 1930 on or after the date on which the 
WTO Agreement enters into force with respect to the United 
States, or 
(2) m cases imder such section 337 in which no complaint 
is filed, with respect to investigations initiated under such 
section on or after such date. 
19 u s e 1337 
note. 
Subtitle D—Textiles 
SEC. 331. TEXTILE PRODUCT INTEGRATION. 
19 USC 3591. 
Not later than 120 days after the date that the WTO Agree- Federal 
ment, as defined in section 2(9) of the Uruguay Round Implementa- ^®f|?**f' 
tion Act, enters into force with respect to the United States, the 
^" ^^^ ^°" 
Secretary of Commerce shall publish in the Federal Register a 
notice containing the Ust of products to be integrated in each 
stage set out in Article 2(8) of the Agreement on Textiles and 
Clothing referred to in section 101(d)(4). After pubUcation of such 
Ust, the Hst may not be changed unless otherwise required by 
statute or the international obligations of the United States, to 
correct technical errors, or to reflect reclassifications. Within 30 
days after the pubUcation of such list, the Trade Representative 
shaU notify the Ust to the Textiles Monitoring Body established 
under Article 8 of the Agreement on Textiles and Clothing. 
SEC. 332. AMENDMENT TO SECTION 204 OF THE AGRICULTURAL ACT 
OF 1966. 
Section 204 of the Agricultural Act of 1956 (7 U.S.C. 1854) 
is amended by amending the second sentence to read as foUows: 
"In addition, if a multilateral agreement, including but not limited 
to the Agreement on Textiles and Clothing referred to in section 
101(d)(4) of the Uruguay Round Implementation Act, has been 
or is concluded under the authority of this section among countries 
accounting for a significant part of world trade in the articles 
with respect to which the agreement was concluded, the President 
may also issue, in order to carry out such agreement, regulations 
governing the entry or withdrawal ftx)m warehouse of the same 
articles which are the products of countries not parties to the 
agreement, or countries to which the United States does not apply 
the agreement.". 
SEC. 333. TEXTILE TRANSSHIFMENTS. 
Part V of titie IV of the Tariff" Act of 1930 is amended by 
inserting after section 592 the foUowing: 
"SEC. 592A. SPECIAL PROVISIONS REGARDING CERTAIN VIOLATIONS. 
19 USC 1592a. 
**(a) PUBLICATION OF NAMES OF CERTAIN VIOLATORS.— 
"(1) PUBLICATION.—The Secretary of the Treasury is 
authorized to pubUsh in the Federal Register a Ust of the 
name of any producer, manufacturer, supplier, seUer, exporter. 
Federal 
Register, 
publication. 
108 STAT. 4948 
PUBLIC LAW 103-465—DEC. 8, 1994 
or other person located outside the customs territory of the 
United States— 
"(A) against whom the Customs Service has issued 
a penalty claim under section 592, and 
"(B) if a petition with respect to that claim has been 
filed under section 618, against whom a final decision 
has been issued under such section after exhaustion of 
administrative remedies, 
citing any of the violations of the customs laws referred to 
in paragraph (2). Such list shall be published not later than 
March 31 and September 30 of each year. 
"(2) VIOLATIONS.—The violations of the customs laws 
referred to in paragraph (1) are the following: 
"(A) Using docimientation, or providing documentation 
subsequently used by the importer of record, which 
indicates a false or fi^udulent country of origin or source 
of textile or apparel products. 
"(B) Using counterfeit visas, Ucenses, permits, biUs 
of lading, or similar documentation, or providing counterfeit 
visas, licenses, permits, bills of lading, or similar docu-
mentation that is subsequently used oy the importer of 
record, with respect to the entry into the customs territory 
of the United States of textile or apparel products. 
"(C) Manufacturing, producing, supplying, or selling 
textile or appsirel products which are falsely or fraudulently 
labelled as to country of origin or soiuxe. 
"(D) Engaging in practices which aid or abet the trans-
shipment, tiirough a country other than the country of 
origin, of textile or apparel products in a manner which 
conceals the true origin of the textile or apparel products 
or permits the evasion of quotas on, or voluntary restraint 
agreements with respect to, imports of textile or apparel 
products. 
"(3) REMOVAL FROM LIST.—Any person whose name has 
been included in a Ust pubUshed under paragraph (1) may 
petition the Secretary to be removed fix)m such Ust If the 
Secretary finds that such person has not committed any viola-
tions described in paragraph (2) for a period of not less than 
3 years after the date on which the person's name was so 
published, the Secretary shall remove such person fix)m the 
list as of the next pubUcation of the Ust under paragraph 
(2). 
"(4) 
REASONABLE 
CARE 
REQUIRED 
FOR 
SUBSEQUENT 
IMPORTS.— 
"(A) RESPONSIBILITY OF IMPORTERS AND OTHERS.—After 
the name of a person has been pubUshed under paragraph 
(1), the Secretary of the Treasury shaU require any 
importer of record entering, introducing, or attempting to 
introduce into the commerce of the United States textile 
or apparel products that were either directly or indirectly 
produced, manufactured, suppUed, sold, exported, or trans-
ported by such named person to show, to the satisfaction 
of the Secretary, that such importer has exercised reason-
able care to ensure that the textile or apparel products 
are accompanied by documentation, packaging, and label-
Ung that are accurate as to its origin. Such reasonable 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4949 
care shall not include reliance solely on a source of informa-
tion which is the named person. 
"(B) FAILURE TO EXERCISE REASONABLE CARE.—If the 
Customs Service determines that merchandise is not from 
the country claimed on the documentation accompanying 
the merchandise, the failure to exercise reasonable care 
described in subparagraph (A) shall be considered when 
the Customs Service determines whether the importer of 
record is in violation of section 484(a). 
"(b) LIST OF HIGH RISK COUNTRIES.— 
"(1) LIST.—^The President or his designee, upon the advice Federal 
of the Secretaries of Commerce and Treasury, and the heads pu^cation 
of other appropriate departments and agencies, is authorized 
to publish a Ust of countries in which illegal activities have 
occurred involving transshipped textile or apparel products or 
activities designed to evade quotas of the United States on 
textile or apparel products, if those countries fail to demonstrate 
a good faitn effort tx) cooperate with United States authorities 
in ceasing such activities. Such list shall be pubUshed in the 
Federal Register not later than March 31 of each year. Any 
country that is on the Ust and that subsequentiy demonstrates 
a good faith effort tx) cooperate with United States authorities 
in ceasing illegal activities described in the first sentence shall 
be removed from the Ust, and such removal shaU be pubUshed 
in the Federal Register as soon as practicable. 
"(2) 
REASONABLE 
CARE 
REQUIRED 
FOR SUBSEQUENT 
IMPORTS.— 
"(A) RESPONSIBILITY OF IMPORTERS OF RECORD.—The 
Secretary of the Treasury shall require any importer of 
record entering, introducing, or attempting to introduce 
into the commerce of the United States textile or apparel 
f
)roducts indicated, on the documentation, packaging, or 
abeUing accompanying such products, to be from £iny coun-
try on the list puolished under paragraph (1) to show, 
to the satisfaction of the Secretsiry, that such importer, 
consignee, or purchaser has exercised reasonable c£ire to 
ascertain the true country of origin of the textile or apparel 
products. 
"(B) FAILURE TO EXERCISE REASONABLE CARE.—If the 
Customs Service determines that merchandise is not from 
the country claimed on the documentation accompanying 
the merchandise, the failure to exercise reasonable care 
described in subparagraph (A) shaU be considered when 
the Customs Service determines whether the importer of 
record is in violation of section 484(a). 
"(3) DEFINITION.—For purposes of this subsection, the term 
'country' means a foreign country or territory, including any 
overseas dependent territory or possession of a foreign 
country.". 
SEC. 334. RULES OF ORIGIN FOR TEXTILE AND APPAREL PRODUCTS. 
19 USC 3592. 
(a) REGULATORY AUTHORITY.—The Secretary of the Treasmy 
shaU prescribe rules implementing the principles contained in sub-
section (b) for determining the origin of textiles and apparel prod-
ucts. Such rules shall be promulgated in final form not later than 
July 1, 1995. 
(b) PRINCIPLES.— 
108 STAT. 4950 
PUBLIC LAW 103-465—DEC. 8, 1994 
(1) IN GENERAL.—Except as otherwise provided for by stat-
ute, a textile or apparel product, for purposes of the customs 
laws and the administration of quantitative restrictions, origi-
nates in a coimtry, territory, or insular possession, and is 
the growth, product, or manufacture of that country, territory, 
or insular possession, if— 
(A) the product is wholly obtained or produced in that 
countrv, territory, or possession; 
(B) the product is a yam, thread, twine, cordage, rope, 
cable, or braiding and— 
(i) the constituent staple fibers are spun in that 
country, territory, or possession, or 
(ii) the continuous filament is extruded in that 
country, territory, or possession, 
(C) the product is a fabric, including a fabric classified 
under chapter 59 of the HTS, and the constituent fibers, 
filaments, 
or yams are woven, knitted, needled, tufted, 
felted, entangled, or transformed by any other fabric-mak-
ing process in that country, territory, or possession; or 
(D) the product is any other textile or apparel product 
that is wholly assembled in that country, territory, or 
possession 
fi"om 
its component pieces. 
(2) SPECIAL RULES.—Notwithstanding paragraph (1)(D)— 
(A) the origin of a good that is classified under one 
of the following HTS headings or subheadings shall be 
determined unoer subparagraph (A), (B), or (C) of para-
graph (1), as appropriate: 5609, 5807, 5811, 6209.20.50.40, 
6213, 6214, 6301, 6302, 6303, 6304, 6305, 6306, 6307.10, 
6307.90, 6308, or 9404.90; and 
(B) a textile or apparel product which is knit to shape 
shall be considered to originate in, and be the growth, 
product, or manufacture of, the country, territory, or posses-
sion in which it is knit. 
(3) MULTICOUNTRY RULE.—If the Origin of a good cannot 
be determined imder paragraph (1) or (2), then that good shall 
be considered to originate in, and be the growth, product, 
or manufacture of— 
(A) the country, territory, or possession in which the 
most important assembly or manufacturing process occurs, 
or 
(B) if the origin of the good cannot be determined 
under subparagraph (A), the last country, territory, or 
possession in wnicn important assembly or manufacturing 
occurs. 
(4) COMPONENTS CUT IN THE UNITED STATES.—(A) The value 
of a component that is cut to shape (but not to length, width, 
or both) in the United States fix)m foreign fabric and exported 
to another country, territory, or insular possession for assembly 
into an article that is then returned to the United States— 
(i) shall not be included in the dutiable value of such 
article, and 
(ii) may be appUed toward determining the percentage 
referred to in General Note 7(b)(iXB) of the HTS, subject 
to tiie limitation provided in that note. 
(B) No article (except a textile or apparel product) assem-
bled in whole of components described in subparagraph (A), 
or of such components and components that are products of 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4951 
the United States, in a beneficiary country as defined in Gen-
eral Note 7(a) of the HTS shall be treated as a foreign article, 
or as subject to duty if— 
(i) the components after exportation fi*om the United 
States, and 
(ii) the article itself before importation into the United 
States 
do not enter into the commerce of any foreign country other 
than such a beneficiary country. 
(5) 
EXCEPTION FOR UNITED STATES-ISRAEL FREE TRADE 
AGREEMENT.—^This section shall not affect, for purposes of the 
customs laws and administration of quantitative restrictions, 
the status of goods that, under ruhngs and administrative 
practices in effect immediately before the enactment of this 
Act, would have originated in, or been the growth, product, 
or manufacture of, a country that is a party to an agreement 
with the United States establishing a free trade area, which 
entered into force before January 1, 1987. For such purposes, 
such rulings and administrative practices that were applied, 
immediately before the enactment of this Act, to determine 
the origin of textile and apparel products covered by such 
agreement shall continue to apply after the enactment of this 
Act, and on and after the effective date described in subsection 
(c), imless such rulings and practices are modified by the 
mutual consent of the parties to the agreement. 
(c) EFFECTIVE DATE.—This section shall apply to goods entered, 
or withdrawn fix)m warehouse, for consumption on or after July 
1, 1996, except that this section shall not apply to goods if— 
(1) the contract for the sale of such goods to the United 
States is entered into before July 20,1994; 
(2) all of the material terms of sale in such contract, includ-
ing the price and quantity of the goods, are fixed and determina-
ble before July 20, 1994; 
(3) a copy of the contract is filed with the Commissioner 
of Customs within 60 days after the date of the enactment 
of this Act, together with a certification that the contract meets 
the requirements of paragraphs (1) and (2); and 
(4) the goods are entered, or withdrawn fix)m warehouse, 
for consumption on or before January 1, 1998. 
The origin of goods to which this section does not apply shall 
be determined in accordance with the appUcable rules in effect 
on July 20, 1994. 
SEC. 336. EFFECTIVE DATE. 
19 USC 3591 
Except as provided in section 334, this subtitie and the amend-
ments made by this subtitle take effect on the date on which 
the WTO Agreement enters into force with respect to the United 
States. 
Subtitle E—Government Procurement 
SEC. 341. 
MONITORING 
AND 
ENFORCEMENT 
OF 
THE 
AGREEMENT 
ON 
GOVERNMENT 
PROCUREMENT. 
(a) IN GENERAL.—Section 305(f)(2) of the Trade Agreements 
Act of 1979 (19 U.S.C. 2515(f>(2)) is amended— 
108 STAT. 4952 
PUBLIC LAW 103-465—DEC. 8, 1994 
(1) in the matter preceding subparagraph (A), by striking 
"a year" and inserting "the 18 months", 
(2) by striking "or" at the end of subparagraph (B), 
(3) by redesignating subparagraph (C) as subparagraph 
(D), and 
(4) by inserting after subparagraph (B), the following new 
subparagraph: 
"(C) the procedm^s result in a determination providing 
a specific period of time for the other participant to bring 
its practices into compliance with the Agreement, or". 
(b) SANCTIONS AFTER DISPUTE RESOLUTION FAILS.— 
(1) SANCTIONS.—Paragraph (3) of section 305(f) of such 
Act (19 U.S.C. 2515(f)(3)) is amended to read as follows: 
"(3) SANCTIONS AFTER DISPUTE RESOLUTION FAILS.— 
"(A) FAILURES RESULTING IN SANCTIONS.—If— 
"(i) within 18 months from the date dispute settle-
ment procedures are initiated with a signatory country 
pursuant to this section— 
"(I) such procedures are not concluded, or 
"(II) the country has not met the requirements 
of subparagraph (A) or (B) of paragraph (2), or 
"(ii) the period of time provided for pursuant to 
paragraph (2)(C) has expired and procedures for 
suspending concessions under the Agreement have 
been completed, 
then the sanctions described in subparagraph (B) shall 
be imposed. 
"(B) SANCTIONS.— 
"(i) IN GENERAL.—If subparagraph (A) appUes to 
any signatory country— 
"(I) the signatory country shall be considered 
as a signatory not in good standing of the Agree-
ment and the prohibition on procurement con-
tained in section 4 of the Act of March 3, 1933 
(41 U.S.C. lOb-1) shall apply to such country, 
and 
"(II) the President shall revoke the waiver of 
discriminatory purchasing requirements granted to 
the signatory coimtry pursuant to section 301(a). 
"(ii) 
TIME ,, SANCTIONS 
ARE 
IMPOSED.—^Any 
sanction— 
"(I) described in clause (i)(I) shall apply from 
the date that is the last day of the 18-month 
period described in subparagraph (A)(i) or, in the 
case of paragraph (2)(C), from the date procedures 
for suspending concessions under the Agreement 
have been completed, and 
"(II) described in clause (i)(II) shall apply 
beginning on the day after the date described in 
subclause (I).". 
(2) CONFORMING AMENDMENT.—Paragraph (4) of section 
305(f) of such Act (19 U.S.C. 2515(f)(4)) is amended by striking 
"subparagraph (A) or (B) of paragraph (3)" and inserting 
"subclause (I) or (II) of paragraph (3)(B)(i)". 
(c) REPORT TO CONGRESS.— 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4953 
(1) Section 305(d)(2) of the Trade Agreements Act of 1979 
(19 U.S.C. 2515(d)(2)) is amended by adding at the end the 
following new subparagraphs: 
"(D)(i) are not signatories to the Agreement; 
"(ii) fail to apply transparent and competitive proce-
dures to its government procurement equivalent to those 
in the Agreement; and 
"(iii) whose products or services are acquired in signifi-
cant amounts by the United States Government; or 
"(E)(i) are not signatories to the Agreement; 
"(ii) fail to maintain and enforce effective prohibitions 
on bribery and other corrupt practices in connection with 
government procurement; and 
"(ui) whose products or services are acquired in signifi-
cant amounts by the United States Government.". 
(2) Section 305(dX3)(C) of the Trade Agreements Act of 
1979 (19 U.S.C. 2515(dX3)(C)) is amended by adding before 
the period at the end the following: ", including the failure 
to maintain and enforce effective prohibitions on bribeiy and 
other 
corrupt 
practices 
in 
connection with 
government 
procurement . 
SEC. 342. CONFORMING AMENDMENTS. 
(a) WAIVER OF DISCRIMINATORY PURCHASING REQUIREMENTS 
REGARDING PURCHASES OF CIVIL AIRCRAFT.—Section 303 
of 
the 
Trade Agreements Act of 1979 (19 U.S.C. 2513) is amended by 
inserting "referred to in section 2(c) and approved under section 
2(a)'' after "Civil Aircraft^'. 
(b) EXPANSION OF COVERAGE OF THE AGREEMENT.—Section 304 
of the Trade Agreements Act of 1979 (19 U.S.C. 2514) is amended— 
(1) in subsections (a) and (c) by striking "part IX, paragraph 
6" and inserting "article XXIV(7)''; 
(2) in subsection (c) by striking "part VI, paragraph 9" 
and inserting "article XIX(5)''; and 
(3) in subsection (e) by striking "date of enactment of 
this Act" £ind inserting "date it enters into force with respect 
to the United States". 
(c) 
ANNUAL REPORT ON FOREIGN DISCRIMINATION.—Section 
305(d) of the Trade Agreements Act of 1979 (19 U.S.C. 2515(d)) 
is amended by striking out "April 30, 1990, and annually on April 
30 thereafter, and inserting "April 30 of each year,". 
(d) LABOR SURPLUS AREA STUDIES.—Section 306 of the Trade 
Agreemente Act of 1979 (19 U.S.C. 2516), and the item relating 
to such section in the table of contents for such Act, are repealed. 
(e) 
AVAILABILITY 
OF 
INFORMATION 
TO 
CONGRESSIONAL 
ADVISORS.—Section 307 of the Trade Agreements Act of 1979 (19 
U.S.C. 2517) is amended by striking "part VI, paragraph 9," and 
inserting "article XIX(5)''. 
(f) DEFINITIONS.—Section 308 of the Trade Agreemente Act 
of 1979 (19 U.S.C. 2518) is amended— 
(1) in paragraph (1) by striking "section 2(c) of this Act" 
and inserting "section 101(a)(17) of the Uruguay Round Agree-
mente Act"; and 
(2) in paragraph (4)— 
(A) in subparagraph (C) by striking "having a contract 
value" and all that follows through the end of the subpeira-
79-194 O—95—13 : QL 3 Part 6 
108 STAT. 4954 
PUBLIC LAW 103-465—DEC. 8, 1994 
graph and insertiiig "for which the United States is obU-
gated to waive Buy National restrictions under— 
"(i) the Agreement on the EstabUshment of a Free 
Trade Area between the Government of the United 
States of America and the Government of Israel, 
regardless of the thresholds provided for in the Agree-
ment (as defined in paragraph (1)), or 
"(ii) any subsequent agreement between the United 
States and Israel which lowers on a reciprocal basis 
the appHcable threshold for entities covered by the 
Agreement."; and 
(B) in subparagraph (D) by striking "GATT" the first 
place it appears and all that follows through the end of 
the subparagraph and inserting "the Agreement (as defined 
in paragraph (1)), but for the thresholds provided for in 
the Agreement". 
(g) CONFORMING AMENDMENTS.—Section 401 of the Riu-al Elec-
trification Act of 1938 (7 U.S.C. 903 note) is amended— 
(1) by striking ", Mexico, or Canada" each place that it 
appears and inserting "or in any eligible countrV*; and 
(2) by adding at the end the following: ^ o r purposes of 
this section, an 'ehgible country' is any country tiiat appHes 
with respect to the United States an agreement ensuring recip-
rocal access for United States products and services and United 
States suppUers to the markets of that country, as determined 
by the United States Trade Representative.". 
SEC. 343. RECIPROCAL COMPETITIVE PROCUREMENT PRACTICES. 
(a) APPLICABIUTY.—Section 302(a) of the Trade Agreements 
Act of 1979 (19 U.S.C. 2512(a)) is amended to read as follows: 
"(a) AUTHORITY TO BAR PROCUREMENT FROM NON-DESIGNATED 
COUNTRIES.— 
"(1) IN GENERAL.—Subiect to paragraph (2), the President, 
in order to encourage additional cotmtries to become parties 
to the Agreement and to provide appropriate reciprocal competi-
tive government procurement opportunities to United States 
products and supphers of such products— 
"(A) shall, with respect to procurement covered by the 
Agreement, prohibit the procurement, after the date on 
which any waiver under section 301(a) first takes effect, 
of products— 
"(i) which are products of a foreign country or 
instrumentahty which is not designated pursuant to 
section 301(b), and 
"(ii) which would otherwise be eUgible products; 
and 
"(B) may, with respect to procurement covered by the 
Agreement, take such other actions within the President's 
authority as the President deems necessary. 
"(2) EXCEPTION.—Paragraph (1) shall not apply in the case 
of procurements for which— 
"(A) there are no offers of products or services of the 
United States or of eligible products; or 
"(B) the offers of products or services of the United 
States or of eHgible products are insufficient to fulfill the 
requirements ofthe United States Grovemment". 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4955 
(b) ADDITIONAL WAIVER AUTHORITY.—Section 302(b) of 
the 
Trade Agreements Act of 1979 (19 U.S.C. 2512(b)) is amended— 
(1) by amending paragraph (1) to read as follows: 
"(1) waive the prohibition required by subsection (a)(1) 
on procurement of products of a foreign coimtry or instrumen-
tality which has not yet become a party to the Agreement 
b u t ^ 
"(A) h£is agreed to apply transparent and competitive 
procediu^s to its government procurement equivalent to 
those in the Agreement, £ind 
"(B) maintains and enforces effective prohibitions on 
bribery and other corrupt practices in connection with its 
government procurement;"; and 
(2) by adding after paragraph (3) the following: 
"Before exercising the waiver authority under paragraph (1), the 
President. 
President shall consult with the appropriate private sector advisory 
committees estabUshed imder section 135 of the Trade Act of 1974 
and with the appropriate committees of the Congress.". 
(c) CONFORMING AMENDMENT.—Section 305(g) of the Trade 
Agreements Act of 1979 (19 U.S.C. 2515(g)) is amended— 
(1) in paragraph (1)— 
(A) by striking "(B) or (C)" and inserting "(B), (C), 
(D),or(E)^and 
(B) by striking "their discriminatory procurement prac-
tices" and insertmg "the practices regarding government 
procurement identified under subparagraph (B)(ii), (C)(ii), 
(DXii), or (E)(ii) (as the case may be)"; and 
(2) in paragraph (3) by striking "discrimination identified 
pursuant to subsection (d)(2)(B) or (C)" and inserting "the prac-
tices regarding government procurement identified 
under 
subparagraph (B)(ii), (C)(ii), (DXii), or (E)(ii) (as the case may 
be) . 
SEC. 344. EFFECTIVE DATE. 
19 USC 2512 
(a) IN GENERAL.—Except as provided in subsection Ot)), the 
amendments made by this subtitie take effect on the date on which 
the Agreement on Government Procurement referred to in section 
101(d)(17) enters into force with respect to the United States. 
(b) SECTION 342(g).—The amendments made by section 342(g) 
take effect on the date on which the WTO Agreement enters into 
force with respect to the United States. 
Subtitle F—^Technical Barriers to Trade 
SEC. 361. TECHNICAL BARRIERS TO TRADE. 
(a) REFERENCES.—^AU references in this section are to titie 
IV of the Trade Agreements Act of 1979 (19 U.S.C. 2531 et seq.) 
unless otherwise specified. 
(b) SECTION 401.—Section 401 is amended— 
19 use 2531. 
(1) by striking "Nothing" and inserting "(b) UNNECESSARY 
OBSTACLES.—Nothing"; and 
(2) by inserting after the section heading the following: 
"(a) No BAR TO ENGAGING IN STANDARDS ACTIVITY.—^Nothing 
in this titie may be construed— 
"(1) to prohibit a Federal agency fix)m engag^g in activity 
related to standards-related measures, including any such 
108 STAT. 4956 
PUBLIC LAW 103-465—DEC. 8, 1994 
measure relating to SEifety, the protection of human, animal, 
or plant life or health, the environment, or consumers; or 
"(2) to limit the authority of a Federal agency to determine 
the level it considers appropriate of safety or of protection 
of human, animal, or plant life or health, the environment, 
or consumers.". 
19 use 2532. 
(c) SECTION 402.—Section 402(4) is amended— 
(1) by striking "CERTIFICATION ACCESS" in the paragraph 
heading and inserting "ACCESS"; 
(2) by striking 
"certification 
system" and inserting 
"conformity assessment procedure"; and 
(3) by striking "certification under that system" and insert-
ing "an assessment of conformity and the mark of the system, 
if any". 
19 use 2544. 
(d) SECTION 414.—Section 414(b)( 1) is amended— 
(1) by inserting "(A)" after "relating to"; 
(2) by striking "certification systems" and inserting "tech-
nical regulations, conformity assessment procedures,"; 
(3) Dy striking "such standards, systems" and inserting 
"such standards, technical regulations, conformity assessment 
procedures,"; and 
(4) after "local" by inserting "and (B) the membership £ind 
participation of Federal, State, or local government bodies or 
private bodies in the United States in international and regional 
standardizing bodies and conformity assessment systems, as 
well £is in bilateral and multilateral arrangements concerning 
standards-related activities". 
19 use 2571. 
(e) DEFINITIONS.—Section 451 is amended— 
(1) so that paragraph (1) reads as follows: 
"(1) AGREEMENT.—^The term 'Agreement* means the Agree-
ment on Technical Barriers to Trade referred to in section 
101(d)(5) of the Uruguay Round Agreements Act."; 
(2) so that paragraph (2) reads as follows: 
"(2) 
CONFORMITY ASSESSMENT PROCEDURE.—The term 
'conformity assessment procedure' means any procedure used, 
directly or indirectiy, to determine that relevant requirements 
in tecmiical regulations or standards are fulfilled."; 
(3) in paragraph (4), by striking "certification system" and 
inserting 
conformity assessment procedure" each place it 
occurs; 
(4) so that paragraph (6)(A) reads as follows: 
"(A) the membership of which is open to representa-
tives, whether pubUc or private, of the United States and 
at leaist all Members."; 
(5) in paragraph (7), by striking "certification system" and 
inserting "conformity assessment procedure"; 
(6) so that paragraph (8) reads as follows: 
"(8) MEMBER.—^The term 'Member' means a WTO member 
as defined in section 2(10) of the Uruguay Round Agreements 
Act."; 
(7) so that paragraph (13) reads as foUows: 
"(13) STANDARD.^The term 'standard' means a document 
approved by a recognized body, that provides, for common and 
repeated use, rules, guidehnes, or characteristics for products 
or related processes and production methods, with which 
compHance is not mandatory. Such term may also include or 
deal exclusively with terminology, symbols, packaging, marking. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4957 
or labeling requirements as they apply to a product, process, 
or production method."; 
(8) in para^ph (14), by striking "or any certification sys-
tem" and insertmg ", technical regulation, or conformity assess-
ment procedure"; and 
(9) by redesignating paragraph (17) as paragraph (18) and 
inserting after paragrapn (16) the following: 
"(17) TECHNICAL REGULATION.—The term technical r e l a -
tion' mesms a dociunent which lays down product characteristics 
or their related processes and production methods, including 
the applicable administrative provisions, with which compliance 
is mandatory. Such term may also include or deal exclusively 
with terminology, symbols, packaging, marking, or labeling 
requirements as they apply to a product, process, or production 
method.". 
(f) REPORTS TO CONGRESS.—Section 453 is amended by inserting 1
9 use 2573. 
"through 2001" after "succeeding 3-year period". 
(g) EFFECTIVE DATE.—Title IV of the Trade Agreements Act 1
9 use 2531 
of 1979 (19 U.S.C. 2531 et seq.) is amended by striking sec- "
°
*
® 
tion454. 
SEC. 352. EFFECTIVE DATE. 
19 USC 2531 
This subtitle and the amendments made by this subtitle take 
effect on the date on which the WTO Agreement enters into force 
with respect to the United States. 
TITLE IV—AGRICULTURE-RELATED 
PROVISIONS 
Subtitle A—^Agriculture 
PART I—MARKET ACCESS 
SEC. 401. SECTION 22 AMENDMENTS. 
(a) AMENDMENT TO SECTION 22.— 
(1) GENERALLY.—Subsection (f) of section 22 of the Agricul-
tural Adjustment Act (7 U.S.C. 624(f)), reenacted with amend-
ments by the Agricultural Marketing Agreement Act of 1937, 
is amended to read as follows: 
"(f) No quantitative limitation or fee shall be imposed under 
this section with respect to any article that is the product of 
a WTO member (as defined in section 2(10) of the Uruguay Round 
Agreements Act).". 
(2) EFFECTIVE DATE.—^The amendment made by paragraph 7 use 624. 
(1) shall take effect on the date of entry into force of tlie 
WTO Agreement with respect to the United States, except 
that with respect to wheat, that amendment shall take effect 
on the later of such date or September 12, 1995. 
(b) CONFORMING AMENDMENTS.— 
(1) SECTION 202 OF THE AGRICULTURAL ACT OF 1956.—Section 
202 of 
the Agricultural Act of 1956 (7 U.S.C. 1852) is amended— 
(A) by striking subsection (a); and 
(B) in subsection (b), by striking "(b)". 
(2) COTTON IMPORT QUOTAS.—Section 103B of the Agricul-
tural Act of 1949 (7 U.S.C. 1444-2) is amended— 
(A) in subsection (a)(5)(F)(i>— 
108 STAT. 4958 
PUBLIC LAW 103-465—DEC. 8, 1994 
(i) by striking "this section" and inserting "the 
Uruguay Round Agreements Acf; and 
(ii) by striking "limited global"; 
(B) in subsection ra)(5)(F)(iv), by striking "special quota 
period has" and inserting "quota period has"; 
(C) by adding at me end of subsection (a)(5)(F) the 
following: 
"(v) PREFERENTIAL TARIFF TREATMENT.—The quan-
tity under a special import quota shall be considered 
to be an in-quota quantity for purposes of section 213(d) 
of the Cariobean Basin Economic Recovery Act (19 
U.S.C. 2703(d)), section 204 of the Andean Trade Pref-
erence Act (19 U.S.C. 3203), section 503(d) of the Trade 
Act of 1974 (19 U.S.C. 2463(d)), and General Note 
3(a)(iv) to the HTS. 
"(vi) DEFINITION.—^As used in this subparagraph, 
the term 'special import quota' means a quantity of 
imports that is not subiect to the over-quota tariff 
rate of a tariff-rate quota. ; and 
(D) in subsection (n)— 
(i) in the subsection headia^, by striking "SPECIAL"; 
(ii) in paragraph (1), by stnldng "this section" and 
inserting "the Uruguay Round Agreements Act"; 
(iii) in paragraph (1), by striking "special" each 
place it appears; 
(iv) by redesignating paragraph (1)(C) as para-
graph (1)(D); 
(v) by inserting after subparagraph (B) of para-
graph (1) the following: 
(C) PREFERENTIAL TARIFF TREATMENT.—The quantity 
under a limited global import quota shall be considered 
to be an in-quota quantity for purposes of section 213(d) 
of the Caribbean Basin Economic Recovery Act (19 U.S.C. 
2703(d)), section 204 of the Andean Trade Preference Act 
(19 U.S.C. 3203), section 503(d) of the Trade Act of 1974 
(19 U.S.C. 2463(d)), and General Note 3(a)(iv) to the HTS."; 
and 
(vi) in paragraph (1)(D) (as redesignated by clause 
(iv)), by adaing at tne end the following: 
"(iii) LIMITED GLOBAL IMPORT QUOTA.—^As used in 
this subsection, the term limited global import quota' 
means a quantity of imports that is not subject to 
the over-quota tariff rate of a tairiff-rate quota."; and 
(vii) in paragraph (2), by striking "special quota 
period may" and inserting "quota period may". 
SEC. 
4
0
2
. 
CHEESE 
AND 
CHOCOLATE 
CRUMB 
IMPORTS. 
(a) REPEAL OF SECTIONS 701 AND 703.—Sections 701 and 703 
of the Trade Agreements Act of 1979 (93 Stat 268) are hereby 
(b) PRESIDENTIAL ACTION.—Section 702(d)(1) (93 Stat. 268) of 
the TVade Agreements Act of 1979 is amended to read as follows: 
"(1) IN GENERAL.—Not later than 7 days after receiving 
a report under subsection (c)(3) with respect to an article of 
cheese subject to an in-quota rate of duty (or not later than 
3 days after receiving a report under paragraph (2) in anv 
case in which such paragraph applies), the President shall 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4959 
proclaim the imposition of a fee on the importation of such 
article from the country involved in such amoimt (not to exceed 
the amount of the subsidy determined under subsection 
(b)(2)(B)) as may be necessary to ensure that the duty-paid 
wholesale price of such article will not be less than the domestic 
wholesale market price of similar articles produced in the 
United States, and shall direct the Conunissioner of Customs 
to administer and enforce such fee. Any such fee imposed 
shall be in addition to any customs duty or other fee imposed 
bylaw.". 
(c) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) Section 702 of the Trade Agreements Act of 1979 is 
amended by striking "of quota cheese" each place it appears 
and inserting "of cheese subject to an in-quota rate of duty". 
(2) Section 702(c)(2) of such Act is amended— 
(A) by striking "the Special Representative for Trade 
Negotiations" and mserting "the Umted States Trade Rep-
resentative", and 
(B) by striking "The Special Representative" and insert-
ing "The United States Trade Representative". 
(3) Subsections (c)(3)(B) and (e) of section 702 of such 
Act are each amended by striking "or quantitative limitation". 
(4) Section 702(f) of such Act is amended— 
(A) by inserting "(as in effect on the day before the 
effective date of titie II of the Uruguay Round Agreements 
Act)" after "TariiOf Act of 1930", and 
(B) by striking "imder titie I of this Act" and inserting 
"under titie VII of the Tariflf Act of 1930". 
(5) Section 702(g)(2) of such Act is amended by striking 
"or quantitative limitations". 
(6) Section 702(h) of such Act is amended by adding at 
the end the following new paragraphs: 
"(4) CHEESE SUBJECT TO AN IN-QUOTA RATE OF DUTY.— 
The term 'cheese subject to an in-quota rate of duty] means 
the articles and the quantities of such articles provided for 
in the Additional U. S. Notes 14 through 23 of chapter 4 
of Schedule XX (as defined in section 2(5) of the Uruguay 
Roimd Agreements Act). 
"(5) SECRETARY.—^The term 'Secretary* means the Secretary 
of Agriculture.". 
SEC. 403. MEAT IMPORT ACT. 
The Meat Import Act of 1979 (19 U.S.C. 2253 note) is repealed. 
SEC. 404. ADMIMSTKATION OF TARIFF-RATE QUOTAS. 
19 USC 3601. 
(a) ORDERLY MARKETING.—^In implementing the tariff-rate 
quotsis set out in Schedule XX for the entry, or withdrawal from 
warehouse, for consumption of goods in the United States, the 
President shall take such action as may be necessary to ensure 
that imports of agricultural products do not disrupt the orderly 
marketing of commodities in the United States. 
(b) INADEQUATE SUPPLY.—Where imports of an agricultural 
product are subject to a tariff-rate quota, and where the President 
determines £Uid proclaims that the supply of the same or directiy 
competitive or suDstitutable agricultural product will be inadequate, 
because of a natural disaster, disease, or major national market 
disruption, to meet domestic demand at reasonable prices, the Presi-
dent may temporarily increase the quantity of imports of the 
108 STAT. 4960 
PUBLIC LAW 103-465—DEC. 8, 1994 
agricultural product that is subject to the in-quota rate of duty 
established under the tariff-rate quota. 
(c) MONITORING.—The Secretary of Agriculture shall monitor 
the domestic supply of agricultural products subject to a tariff-
rate quota as the Secretary considers appropriate and shall advise 
the President when the domestic supply of the products and 
substitutable products combined with the estimated imports of the 
products under the tariff-rate quota may be inadequate to meet 
domestic demand at reasonable prices. 
(d) COVERAGE OF TARIFF-RATE QUOTAS.— 
(1) EXCLUSIONS.—^The President may, subject to terms and 
conditions determined appropriate by the President, provide 
that the entry, or withdrawal from warehouse, for consumption 
in the United States of an agricultural product shall not be 
subject to the over-quota rate of duty established imder a 
tariff-rate quota if the agricultural product— 
(A) is imported by, or for the account of, tmy agency 
of the United States or of any foreign embassy; 
(B) is imported as a sample for taking orders, for 
the personal use of the importer, or for the testing of 
equipment; 
(C) is a commercial sample or is entered for exhibition, 
display, or ssimpling at a trade fair or for research; or 
(D) is a blended syrup provided for in subheadings 
1702.20.28, 1702.30.28, 1702.40.28, 1702.60.28, 1702.90.58, 
1806.20.92, 1806.20.93, 1806.90.38, 1806.90.40, 2101.10.38, 
2101.20.38, 2106.90.38, or 2106.90.67 of Schedule XX, if 
entered from a foreign trade zone by a foreign trade zone 
user whose facilities were in operation on June 1, 1990, 
to the extent that the annual quantity entered into the 
customs territory from such zone does not contain a quan-
tity of sugar of nondomestic origin greater than the quan-
tity authorized by the Foreign Trade Zones Board for 
processing in that zone during ceJendar year 1985. 
(2) RECLASSIFICATION.—Subject to the consultation and lay-
over requirements of section 115, the President may proclaim 
a modification to the coverage of a tariff-rate quota for any 
agricultural product if the President determines the modifica-
tion is necessary or appropriate to conform the tariff-rate quota 
to Schedule XX as a result of a reclassification of any item 
by the Secretary of the Treasury. 
(3) ALLOCATION.—^The President may allocate the in-quota 
quantity of a tariff-rate quota for any agricultural product 
among supplying countries or customs areas and may modify 
any allocation as determined appropriate by the President. 
(4) BILATERAL AGREEMENT.—^The President may proclaim 
an increase in the tariff-rate quota for beef if the President 
determines that £in increase is necessary to implement— 
(A) the March 24, 1994, agreement between the United 
States and Argentina; or 
(B) the March 9, 1994, agreement between the United 
States and Uruguay. 
(5) CONTINUATION OF SUGAR HEADNOTE.—The President 
is authorized to proclaim additional United States note 3 to 
chapter 17 of the HTS, and to proclaim the modifications to 
the note, as determined appropriate by the President to reflect 
Schedule XX. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4961 
(e) CONFORMING AMENDMENTS.— 
(1) SECTION 213 OF THE CARIBBEAN BASIN ECONOMIC RECOV-
ERY ACT.—Section 213(d) of the Caribbean Basin Economic 
Recovery Act (19 U.S.C. 2703(d)) is amended to read as follows: 
"(d) TARIFF-RATE QUOTAS.—No quantity of an agricultural prod-
uct subject to a tariff-rate quota that exceeds the in-quota quantity 
shall be eligible for duty-free treatment under this title.". 
(2) SECTION 204 OF THE ANDEAN TRADE PREFERENCE ACT.— 
Section 204 of the Andean Trade Preference Act (19 U.S.C. 
3203) is amended by adding at the end the following new 
subsection: 
"(g) TARIFF-RATE QUOTAS.—^No quantity of an agricultural prod-
uct subject to a tariff-rate quota that exceeds the in-quota quantity 
shall be eligible for duty-free treatment under this Act". 
(3) GSR—Section 503 of the Trade Act of 1974 (19 U.S.C. 
2463) is simended by adding at the end the following new 
subsection: 
"(d) TARIFF-RATE QUOTAS.—^No quantity of an agricultural prod-
uct subject to a tariff-rate quota that exceeds the in-quota quantity 
shall be eUgible for duty-free treatment under this titie.". 
(4) GENERAL NOTE 3(a) TO THE HTS.—General Note 3(a)(iv) 
to the HTS is amended by adding at the end the following: 
"(F) No quantity of an agricultural product that is 
subject to a tariff-rate quota that exceeds the in-quota 
quantity shall be eligible for duty-free treatment under 
this paragraph.". 
(5) DUTY DRAWBACK.— 
(A) GENERALLY.—Section 313 of the Tariff Act of 
1930 
(19 U.S.C. 1313) is amended by adding at the end the 
following new subsection: 
"(w) LIMITED APPUCABIUTY FOR CERTAIN AGRICULTURAL PROD-
UCTS.—No drawback shall be available with respect to an agricul-
tural product subject to the over-quota rate of duty established 
under a tariff-rate quota, except pursuant to subsection (i)(l).". 
(B) 
EFFECTIVE 
DATE.—^The amendment 
made by 
subparagraph (A) shall take effect on the earUer of the 
date of entry into force of the WTO Agreement with respect 
to the United States or January 1, 1995. 
(6) RESTRICTIONS ON IMPORTED PEANUTS.—Paragraph (6) 
of section 358e(f) of thfe Agricultural Adjustment Act of 1938 
(7 U.S.C. 1359a(f)(6)) is amended by inserting after "issues 
a proclamation" the following: "under section 404(b) of the 
Uruguay Round Agreements Act expanding the quantity of 
peanuts subject to the in-quote rate of duty under a tariff-
rate quote, or". 
SEC. 406. SPECIAL AGRICUI.TURAL SAFEGUARD AUTHORITY. 
(a) DETERMINATION OF TRIGGER LEVELS.—Consistent with Arti-
cle 5 as determined by the President, the President shall cause 
to be published in the Federal Register— 
(1) the list of special safeguard agricultural goods not later 
than the date of entry into force of tne WTO Agreement with 
respect to the United Stetes; and 
(2) for each special safegu£ird agricultural good— 
(A) the trigger level specified in subparagraph 1(a) 
of Article 5, on an annual basis; 
19 u s e 1313 
note. 
19 use 3602. 
President. 
Federal 
Register, 
publication. 
108 STAT. 4962 
PUBLIC LAW 103-465—DEC. 8, 1994 
(B) the trigger price specified in subparagraph 1(b) 
of Article 5; and 
(C) the relevant period. 
President. 
(fe) DETERMINATION OF SAFEGUARD.—If the President deter-
mines with respect to a special safeguard agricultural good that 
it is appropriate to impose— 
(1) the price-based safeguEird in accordance with subpara-
graph 1(a) 01 Article 5; or 
(2) the volume-based safeguard in accordance with subpara-
graph 1(b) of Article 5, 
the President shall, consistent with Article 5 as determined by 
the President, determine the amount of the duty to be imposed, 
the period such duty shall be in effect, and any other terms and 
conditions applicable to the duty. 
President. 
(c) IMPOSITION OF SAFEGUARD.^The President shall direct the 
Secretary of the Treasury to impose a duty on a special safeguard 
agricultural good entered, or withdrawn from warehouse, for 
consumption m the United States in accordance with a determina-
tion made under subsection (b). 
(d) No SIMULTANEOUS SAFEGUARD.^A duty may not be in 
effect for a special safeguard agricultural good piu^uant to this 
section during any period in which such good is the subject of 
any action proclaimed pursuant to section 202 or 203 of the Trade 
Act of 1974 (19 U.S.C. 2252 or 2253). 
(e) EXCLUSION OF NAFTA COUNTRIES.—The President may 
exempt from any duty imposed under this section any good originat-
ing in a NAFTA country (as determined in accordance with section 
202 of the North American Free Trade Agreement Implementation 
Act (19 U.S.C. 3332)). 
(f) ADVICE OF SECRETARY OF AGRICULTURE.—^The Secretary of 
Agriculture shall advise the President on the implementation of 
this section. 
(g) TERMINATION DATE.—^This section shall cease to be effective 
on the date, as determined by the President, that the special ssife-
guard provisions of Article 5 are no longer in force with respect 
to the United States. 
(h) DEFINITIONS.—For purposes of this section— 
(1) the term "Article 5" means Article 5 of the Agreement 
on Agriculture described in section 101(d)(2); 
(2) the term "relevant period" means the period determined 
by the President to be applicable to a special safeguard agricul-
tural good for purposes of^applying this section; and 
(3) the term "special safeguard agricultural good" means 
an agricultural good on which an additional duty may be 
imposed pursuant to the special safeguard provisions of 
Article 5. 
PART II—EXPORTS 
Export 
Enhancement 
Program 
Amendments of 
1994. 
7 u s e 5601 note. 
SEC. 411. EXPORT PROGRAMS. 
(a) EXPORT ENHANCEMENT PROGRAM.— 
(1) SHORT TITLE.—This subsection may be cited as the 
"Export Enhancement Program Amendments of 1994". 
(2) TITLE HEADING.—-Titie III of the Agricultural Trade 
Act of 1978 (7 U.S.C. 5651 et seq.) is amended by striking 
the titie heading and inserting the following: 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4963 
"TITLE III—EXPORT ENHANCEMENT 
PROGRAM". 
(3) GENERAL AUTHORITY.—Subsection (a) of section 301 of 
such Act (7 U.S.C. 5651(a)) is amended to read as follows: 
"(a) IN GENERAL.—The Commodity Credit Corporation shall 
carry out an export enhancement program in accordance with this 
section to encourage the conmiercial sale of United States agricul-
tural commodities in world markets at competitive prices. The 
program shall be carried out in a market sensitive manner. Activi-
ties under the program shall not be limited to responses to tmfair 
trade practices. . 
(4) FUNDING.—Section 301 of such Act (7 U.S.C. 5651) 
is amended— 
(A) in subsection (e), by striking "1995" and inserting 
"2001"; and 
(B) by adding at the end the following: 
"(g) 
CONSISTENCY WITH INTERNATIONAL OBUGATIONS.—Not-
withstanding any other provision of this section, the Commodity 
Credit Corporation shall administer and carry out the program 
authorized by this section in a manner consistent, as determined 
by the President, with the obligations undertaken by the United 
States set forth in the Uruguay Round Agreements.". 
(b) DAIRY EXPORT INCENTIVE PROGRAM.—Section 153(a) of the 
Food Security Act of 1985 (15 U.S.C. 713a-14) is amended by 
striking "1995" and inserting "2001". 
(c) EXPORT SALES OF DAIRY PRODUCTS.—Subsection (a) of sec-
tion 1163 of the Food Seciuity Act of 1985 (PubUc Law 99-198; 
7 U.S.C. 1731 note) is amended to read as follows: 
"(a) In each fiscal year, the Secretary of Agriculture may sell 
dsdiy products for export, at such prices as the Secretary determines 
appropriate, in a quantity and allocated as determined by the 
Secretary, consistent with the obligations undertaken by the United 
States set forth in the Uruguay Round Agreements, if the disposi-
tion of the commodities will not interfere with the usual marketings 
of the United States nor disrupt world prices of agricultural 
commodities and patterns of commercial trade.". 
(d) MARKET PROMOTION PROGRAM.—(1) Section 203(c) of the 
Agricultural Trade Act of 1978 (7 U.S.C. 5623(c)) is amended— 
(A) by striking paragraph (2); 
(B) by striking: "PARTICIPATION.—" and all that follows 
through "To" in paragraph (1) and inserting "PARTICIPATION.— 
To"; 
(C) by redesignating subparagraphs (A), (B), and (C) as 
psiragraphs (1), (2), and (3), respectively; and 
(D) by aligning the margins of paragraphs (1), (2), and 
(3) (as so redesigDated) so as to silign with the margin of 
paragraph (1) of subsection (d). 
(2) Section 203(f)(2) of such Act (7 U.S.C. 5623(f)(2)) is 
amended— 
(A) by striking subparagraph (D); 
(B) by inserting "or" at the end of subparagraph (C); and 
(C) by redesignating 
subparagraph 
(E) as 
subpara-
graph (D). 
(e) FOOD AID.— 
19USC361I. 
108 STAT. 4964 
PUBLIC LAW 103-465—DEC. 8, 1994 
(1) POLICY.—In light of the Uruguay Round Agreement 
on Agriculture and me Ministerial Tecision on Measures 
Concerning the Possible Negative Effects of the Reform Pro-
gram on Least-Developed and Net-Food Importing? Developing 
ountries, the United States reaffirms the commitment of the 
United States to providing food aid to developing coimtries. 
(2) SENSE OF CONGRESS.—It is the sense of Congress that— 
(A) the President should initiate consultations with 
other donor nations to consider appropriate levels of food 
aid commitments to meet the legitimate needs of developing 
countries* and 
(B) the United States should increase its contribution 
of bona fide food assistance to developing coimtries consist-
ent with the Agreement on Agriculture. 
SEC. 412. OTHER CONFORMING AMENDMENTS. 
(a) PUBLIC LAW 98-332.—Section 106 of Public Law 98-332 
(98 Stat 287), is repealed. 
(b) AGRICULTURE, RURAL DEVELOPMENT, AND RELATED AGEN-
CIES APPROPRIATIONS ACT, 1984.—Section 625(A) of the Agriculture, 
Rural Development, and Related Agencies Appropriations Act, 1984, 
as given the force of law by section 101(a) of PubUc Law 98-
151 (97 Stat. 1853), is repealed. 
(c) AGRICULTURAL ACT OF 1956.—Section 203 of the Agriculture 
Act of 1956 (7 U.S.C. 1853) is repealed. 
PART III—OTHER PROVISIONS 
19 use 2135 
SEC. 421. AUTHORITY FOR CERTAIN ACTIONS UNDER ARTICUJ XXVm. 
(a) IN GENERAL.—In the application of section 125(c) of the 
Trade Act of 1974 (19 U.S.C. 2135) with respect to any item provided 
for in subheadings 2401.10.60, 2401.20.30, 2401.20.80, 2401.30.30, 
2401.30.60, 2401.30.90, 2403.10.00, 2403.91.40, or 2403.99.00 of 
the HTS, "350" shall be substituted for "20" where it appears 
in such section. 
(b) EFFECTIVE DATE.—This section shall take effect on the 
date of the enactment of this Act. 
SEC. 422. TOBACCO IMPORTS. 
(a) DOMESTIC MARKETING ASSESSMENT.—Section 320C of the 
Agricultural Ac^ustment Act of 1938 (7 U.S.C. 13141) is amended 
by adding at the end the following new subsection: 
"(g) EFFECTIVE DATE.—This section shall be effective only for 
calendar year 1994.". 
(b) BUDGET DEFICIT ASSESSMENT.— 
(1) IMPORTER ASSESSMENTS.—Section 106(g) of the Agricul-
tural Act of 1949 (7 U.S.C. 1445(g)) is amended— 
(A) by striking paragraph (1) and inserting the follow-
ing new paragraph: 
"(1) Effective only for each of the 1994 through 1998 crops 
of tobacco for which price support is made available under 
this Act, each producer and purchaser of such tobacco, and 
each importer of the same kind of tobacco, shall remit to the 
Conmioaity Credit Corporation a nonrefundable marketing 
assessment in an amount equal to— 
"(A) in the case of a producer or purchaser of domestic 
tobacco, .5 percent of the national price support level for 
each such crop; and 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4965 
**(B) in the case of an importer of tobacco, 1 percent 
of the national support price for the same kind of tobacco; 
as provided for in this section."; and 
(B) in paragraph (2), by striking "assessments and 
purchaser" and inserting ", purchaser, and importer''. 
(2) CONFORMING AMENDMENT.—Section 106 of such Act 
(7 U.S.C. 1445) is amended by striking subsection (h). 
(c) WAIVER AUTHOR[TY.—The President may waive the appUca- 
'? use 1445 note. 
tion to imported tobacco of section 106(g), 106A, or 106B of the 
Agricultural Act of 1949 (7 U.S.C. 1445(g), 1445-1, or 1445-2) 
or the amendment made in subsection (c) of section 1106 of the 
Omnibus Budget ReconciHation Act of 1993 (Public Law 103-66; 
107 Stat 323) if the President determines that the waiver is nec-
essary or appropriate pursuant to an international agreement 
entered into by the United States. 
(d) DUTY DRAWBACK.—Section 313(w) of the Tariff Act of 1930 
(19 U.S.C. 1313) (as added by section 404(d)(5)) is further 
amended— 
(1) 
by 
striking 
"PRODUCTS.—No" 
and 
inserting 
"PRODUCTS.— 
"(1) IN GENERAL.—No"; and 
(2) by adding at the end the following new paragraph: 
"(2) APPUCATION TO TOBACCO.—Notwithstanding para-
graph (1), drawback shall also be available pursuant to sub-
section (a) with respect to any tobacco subject to the 
over-quota rate of duty estabUshed under a tariff-rate quota.". 
(e) EFFECTIVE DATE.—^This section and the amendments made 
by this section shall be effective beginning on the effective date 
of the Presidential proclamation, authorized under section 421, 
establishing a tariff-rate quota pursuant to Article XXVIII of the 
GATT 1947 or the GATT 1994 with respect to tobacco. 
SEC. 
4
2
3
. 
TOBACCO 
PROCLAMATION 
AUTHORITY. 
(a) IN GENERAL.—The President, after consultation with the 
Committee on Ways and Means of the House of Representatives 
and with the Committee on Finance of the Senate, may proclaim 
the reduction or elimination of any duty with respect to cigar 
binder and filler tobacco, wrapper tobacco, or oriental tobacco set 
forth in Schedule XX. 
(b) EFFECTIVE DATE.—^This section shall take effect on the 
date of the enactment of this Act. 
SEC. 424. REPORT TO CONGRESS ON ACCESS TO CANADIAN DAIRY 
19 USC 3622. 
AND POULTRY MARKETS. 
The President, not later than 6 months after the date of entry 
into force of the WTO Agreement with respect to the United States, 
shall submit a report to the Congress on the extent to which 
Canada is complying witli its obUgations under the Uruguay Round 
Agreements witn respect to dairy and poultry products and with 
its related obUgations imder tne North American Free Trade 
Agreement. 
7 USC 13141 
note. 
19 USC 3621. 
SEC. 426. STUDY OF MILK MARKETING ORDER SYSTEM. 
19 USC 3623. 
The Secretary of Agriculture shall conduct a study to determine 
the effects of the Uruguay Round Agreements on the Federal milk 
marketing order system.. Not later than 6 months after Hie date 
Reports, 
of entry into force of the WTO Agreement with respect to the 
108 STAT. 4966 
PUBLIC LAW 103-465—DEC. 8, 1994 
United States, the Secretary of Agriculture shall report to the 
Congress on the results of the study. 
19 use 3624. 
SEC. 426. ADDITIONAL PROGRAM FUNDING. 
(a) USE OF ADDITIONAL FUNDS.—Consistent, as determined by 
the President, with the obUgations undertaken by the United States 
set forth in the Uruguay Round Agreements, the Conunodity Credit 
Corporation shall use, m addition to any otlier fiinds appropriated 
or made available for such purposes, any funds mad!e available 
under subsection (b) for authorized export promotion, foreign mar-
ket development, export credit financing, and promoting the devel-
opment, commercialization, and marketing of producte resulting 
from alternative uses of agricultural commodities. 
(b) AMOUNT OF ADDITIONAL FUNDS.—Amounts shall be credited 
to the Commodity Credit Corporation in fiscal year 1995 equal 
to the lesser of the dollar amount of— 
(1) the fiscal year 1995 Pay-As-You-Go savings; and 
(2) the 5-year Pay-As-You-Go savings; 
under section 252 of the Balanced Budget and Emergency Deficit 
Control Act of 1985, resulting fi:x)m the enactment oi the Federal 
Crop Insiu-ance Reform Act of 1994. 
(c) EFFECTIVE DATE.—This section shall take effect on the date 
of the enactment of this section. 
Subtitle B—Sanitary and Phytosanitary 
Measures 
SEC. 431. SANTTABY AND PHYTOSANITARY MEASURES. 
(a) TRADE AGREEMENTS ACT OF 1979.—Section 414 of the Trade 
Agreements Act of 1979 (19 U.S.C. 2544) is amended by adding 
at the end the foUowiug: 
"(c) SANITARY AND PHYTOSANITARY MEASURES.— 
(1) PUBLIC INFORMATION.—The standards information cen-
ter shall, in addition to the functions specified under subsection 
(b), make available to the public relevant dociunents, at such 
reasonable fees as the Secretary of Conunerce may prescribe, 
and information regarding— 
"(A) any sanitary or phytosanitary measure of general 
appHcation, including any inspection procedure or approval 
procedure proposed, adopted, or maintained by a Federal 
agency or agency of a State or local government; 
"(B) the procedures of a Federal agency or an agency 
of a State or local government for risk assessment and 
factors the agency considers in conducting the assessment; 
"(C) the determination of the levels of protection that 
a Federal agency or an agency of a State or local govern-
ment considers appropriate; and 
"(D) the membership and participation of the Federal 
Government and State and local governments in inter-
national and regional sanitary and pnytosanitary organiza-
tions and systems, and in bilateral and multilateral 
arrangements reg£irding sanitary and phytosanitary meas-
lu-es, 
and 
the 
provisions 
of 
those 
systems 
and 
arrangements. 
"(2) DEFINITIONS.—The definitions in section 463 apply for 
purposes of this subsection.". 
"""^I^l^,; 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4967 
(b) RAILWAY CAR INSPECTION.—Subsection (a) of the Act 
of 
Januar5^ 31, 1942 (56 Stat 40, chapter 31; 7 U.S.C. 149), is amended 
by striking "from Mexico". 
(c) FEDERAL PLANT PEST ACT.—The Federal Plant Pest Act 
(7 U.S.C. 150aa et seq.) is amended— 
(1) so that section 103 (7 U.S.C. 150bb) reads as follows: 
"SEC. 103. MOVEMENT OF PESTS PROmBITED. 
"(a) IN GENERAL.—No person shall import or enter any plant 
pest into the United States, or move any plaint pest interstate, 
or accept delivery of any plsint pest moving from any foreign country 
into or through the United States, or interstate, unless the move-
ment is made in accordance with such regulations as the Secretary 
may promulgate to prevent the dissemination into the United 
States, or interstate, of plant pests. 
"(b) REGULATIONS.—The regulations promulgated by the Sec-
retary to implement subsection (a) may include regulations requir-
ing tnat a plant pest moving into or through the United States, 
or interstate— 
"(1) be accompanied by a permit issued by the Secretary 
prior to the movement of the plant pest; or 
"(2) be accompanied by a certificate of inspection issued, 
in a manner Eind foim required by the Secretary, oy appropriate 
officiails of the country or State from which the plant pest 
is to be moved."; and 
(2) in section 104 (7 U.S.C. 150cc)— 
(A) so that subsection (a) reads as follows: 
"(a) Any letter, parcel, box, or other package containing any 
plant pest, whether seialed as letter-rate postal matter or not, is 
nonmgolable, and shjdl not knowingly be conveyed in the mail 
or deUvered from any post office or by any mail carrier, unless 
it is mailed in conformance with such regulations as the Secretary 
may promulgate to prevent the dissemination into the United 
States, or interstate, of plant pests."; 
(B) by striking subsection (b); and 
(C) by redesignating subsections (c) and (d) as sub-
sections (b) and (c), respectively. 
(d) PLANT QUARANTINE ACT.—The Act of August 20, 1912 (37 
Stat 315, chapter 308; 7 U.S.C. 151 et seq.) (commonly known 
as the "Plant Quarantine Act") is amended— 
(1) so that the first section (7 U.S.C. 151) reads as foUows: 
"SECTION 1. IMPORTATION OF NURSERY STOCK. 
7 USC 154. 
"(a) IN GENERAL.—No person shall— 
"(1) import or enter into the United States any nursery 
stock; or 
"(2) accept delivery of any nursery stock moving fix)m any 
foreign country into or through the United States; 
unless the movement is made in accordance with such regulations 
as the Secretary of Agriculture may promulgate to prevent dissemi-
nation into the United States of plant pests, plant diseases, or 
insect pests. 
"(b) REGULATIONS.—^The regulations promulgated by the Sec-
retary of Agriculture to implement subsection (a) may include regu-
lations requiring that nursery stock moving into or through the 
United States— 
"(1) be accomp;sinied by a permit issued by the Secretary 
of Agriculture prior to the movement of the nursery stock; 
108 STAT. 4968 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(2) be accompanied by a certificate of inspection issued, 
in a manner and form required by the Secretary of Agriculture, 
by appropriate officials of the country or State from which 
tne nursery stock is to be moved; 
"(3) be grown under postentry quarsintine conditions by 
or under the supervision of the Secretary of Agriculture for 
the purposes of determining whether the nursery stock may 
be infested with plant pests or insect pests, or infected with 
plant diseases, not discernible by port-of-entry inspection; and 
"(4) if tiie nursery stock is found to be infested with plant 
pests or insect pests or infected with plant diseases, be siibject 
to remedial measures the Secretary of Agriculture determines 
to be necessary to prevent the spread of plant pests, insect 
pests, or plant aiseases."; and 
(2) so that the last sentence of section 2 (7 U.S.C. 156) 
reads as follows: "This section does not apply to nursery stock 
that is imported or entered fix)m a country or a region of 
a country that the Secretary of Agriculture designates, pursuant 
to procedures set forth in such regulations as the Secretsiry 
may promulgate, as exempt fi*om the requirements of this sec-
tion.'\ 
(e) HONEYBEE IMPORTATION.—The first section of the Act of 
August 31, 1922 (42 Stat 833, chapter 301; 7 U.S.C. 281) (commonly 
known as the "Honeybee Act"), is amended to read as follows: 
"SECTION 1. HONEYBEE BIPORTATION. 
"(a) IN GENERAL.—^The Secretary of Agriculture is authorized 
to prohibit or restrict the importation or entry of honeybees and 
honeybee semen into or through the United States in order to 
prevent the introduction and spread of diseases and parasites harm-
mi to honeybees, the introduction of genetically undesirable germ 
plasm of honeybees, or the introduction and spread of undesirable 
species or subspecies of honeybees and the semen of honeybees. 
"(b) REGULATIONS.—The Secretary of Agriculture and the Sec-
retary of the Treasury are each authorized to prescribe such regula-
tions as the respective Secretary determines necessary to carry 
out this section. 
"(c) ENFORCEMENT.—Honeybees or honeybee semen offered for 
importation into, intercepted entering, or havinjg entered the United 
States, other than in accordance with regulations promulgated by 
the Secretary of Agriculture and the Secretary of the I^asury, 
shall be destroyed or immediately exported. 
"(d) DEFINITION.—^As used in this Act, the term *honeybee' 
means all life stages and the germ plasm of honeybees of the 
genus Apis, except honeybee semen.". 
(f) FEDERAL NOXIOUS WEED ACT OF 1974.—Section 4 of the 
Federal Noxious Weed Act of 1974 (7 U.S.C. 2803) is amended 
so that subsections (a) through (b) read as foUows: 
"(a) No person shall import or enter any noxious weed identified 
in a regulation promulgated by the Secretary into or through the 
United States or move any noxious weed interstate, unless the 
movement is in accordance with such conditions as tne Secretary 
may prescribe by regulation under this Act to prevent the dissemi-
nation into the United States, or interstate, of such noxious weeds. 
"(b) The regulations prescribed by the Secretary to implement 
subsection (a) may include regulations requiring that any noxious 
weed imported or entered into the United States or moving inter-
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4969 
state be accompanied by a permit issued by the Secretary prior 
to the movement of the noxious weed.". 
(g) TARIFF ACT OF 1930.—Section 306(b) of the Tariff Act of 
1930 (19 U.S.C. 1306(b)) is amended by mserting before the period 
at the end the following: ", or is, and is likely to remain, a region 
of low prevalence of rinderpest and foot-and-mouth disease". 
(h) IMPORTATION OF ANIMALS.—Section 6 of the Act of August 
30, 1890 (26 Stat. 416, chapter 839; 21 U.S.C. 104), is amended 
to read as follows: 
"SEC. 6. IMPORTATION OF ANIMALS. 
"(a) IN GENERAL.—The Secretary of Agriculture may by regula-
tion prohibit or restrict the importation or entry of any cattle, 
sheep, or other ruminants, or swine, that are diseased or infected 
with any disease, or that have been exposed to an infection, into 
or through the United States to prevent the dissemination into 
the United States of a disease. 
"(b) PENALTIES.— 
"(1) CRIMINAL.—:Any person who knowingly violates any 
regulation promulgated by the Secretary pursuant to this sec-
tion, or any provision of sections 7 through 10 or any regulation 
promulgated by the Secretary pursuant to such sections, shall 
be fined under title 18, United States Code, or imprisoned 
not more than 1 year, or both. 
"(2) CIVIL.—^Any person who violates any such provision 
or any such regulation may be assessed a civU penalty by 
the Secretary of Agriculture not exceeding $1,000. The Sec-
retary may issue an order assessing the civil penalty only 
after notice and an opportunity for an agency hearing on the 
record. The order shgJI be treated as a final order reviewable 
under chapter 158 of title 28, United States Code. The vahdity 
of the order may not be reviewed in an action to collect such 
civil penalty.". 
(i) INSPECTION OF ANIMALS.—Section 
10 of the Act of August 
30, 1890 (26 Stat. 417, chapter 839; 21 U.S.C. 105), is amended— 
(1) in subsection (a)— 
(A) by striking "(a) IN GENERAL.—Except as provided 
in subsection (b), the" and inserting "The"; 
(B) in the first sentence, by stnking "shall cause careful 
inspection to be made by a suitable officer of all" and 
inserting "may cause careful inspection of any"; and 
(C) in the third sentence, by striking "they shall not 
be allowed to be placed" and inserting "the Secretary may 
prohibit or restrict their placement"; and 
(2) by striking subsection (b). 
(j) INTERNATIONAL ANIMAL QUARANTINE STATION.—The 6th sen-
tence in the first section of Pubhc Law 91-239 (21 U.S.C. 135) 
is amended— 
(1) by striking "North American"; and 
(2) by striking "withm the United States". 
(k) POULTRY PRODUCTS INSPECTION ACT.—Section 17(d) of the 
Poultry Products Inspection Act (21 U.S.C. 466) is amended— 
(1) by amending paragraph (1) to read as follows: 
"(1) Notwithstanding any other provision of law, EJI poultry, 
or parts or products of poultry, capable of use as human food 
offered for importation into the United States shall— 
108 STAT. 4970 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(A) be subject to inspectioii, sanitary, quality, species ver-
ification, and residue standjirds that achieve a level of sanitary 
protection equivalent to that achieved under United States 
standards; and 
"(B) have been processed in facilities and under conditions 
that achieve a level of sanitsiry protection equivalent to that 
achieved under United States standards."; and 
(2) in paragraph (2)— 
(A) by amending subpEiragraph (A) to read as follows: 
"(A) The Secretary may treat as equivalent to a United States 
standard a standard of an exporting country described in paragraph 
(1) if the exporting country provides the Secretary with scientific 
evidence or other mformation, in accordance witii risk assessment 
methodologies determined appropriate by the Secretary, to dem-
onstrate that the standard of the exporting country achieves the 
level of sanitary protection achieved under the Unitea States stand-
ard. For the purposes of this subsection, the term 'ssmitary protec-
tion' means protection to safeguard pubUc health."; 
(B) by striking subparagraph (B); and 
(C) by redesignatmg subparagraph (C) as subpara-
graph (B). 
(1) FEDERAL MEAT INSPECTION ACT.—Section 20(e) of the Fed-
eral Meat Inspection Act (21 U.S.C. 620(e)) is amended— 
(1) so that subparagraphs (A) through (B) of paragraph 
(1) read as foUows: 
"(A) A certification by the Secretary that foreign plants 
exporting carcasses or meat or meat products referred to in 
subsection (a) have compUed with requirements that achieve 
a level of sanitary protection equivalent to that achieved under 
United States requirements witn regard to all inspection, build-
ing construction standards, and all other provisions of this 
Act and regulations issued under this Act 
"(B) The Secretary may treat as equivalent to a United 
States requirement a requirement described in subparagraph 
(A) if the exporting country provides the Secretary with sci-
entific evidence or other information, in accordance with risk 
assessment methodologies determined appropriate by the Sec-
retary, to demonstrate that the requirement achieves tiie level 
of sanit£iry protection achieved under the United States require-
ment For the purposes of this subsection, the term 'sanitary 
protection' means protection to safeguard pubUc health."; 
(2) by striking paragraph (2); and 
(3) by redesignating paragraphs (3) through (7) as para-
graphs (2) through (6), respectively. 
SEC. 432. INTERNATIONAL STANDARD-SETTING ACTIVrnES. 
Titie IV of the Trade Agreements Act of 1979 (19 U.S.C. 2531 
et seq.) is amended by adding at the end the following new subtitie: 
"Subtitle F—International Standard-
Setting Activities 
19 use 2548. 
"SEC. 491. NOTICE OF UNITED STATES PARTICIPATION IN INTER-
NATIONAL STANDARD-SETIING ACTIVrnES. 
President. 
"(a) IN GENERAL.—The President shall designate an agency 
to be responsible for informing the pubUc of tne sanitary and 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4971 
phytosanitaiy standcird-setting activities of each international 
standard-setting organization. 
**(b) NOTIFICATION.—^Not later than June 1 of each year, the 
agency designated under subsection (a) with respect to each inter-
national standard-setting organization shall publish notice in the 
Federal Register of the information specified in subsection (c) with 
respect to that organization. The notice shall cover the period 
enoing on June 1 of the year in which the notice is published, 
and beginning on the date of the preceding notice under this sub-
section, except that the first such notice shall cover the 1-year 
period ending on the date of the notice. 
"(c) REQUIRED INFORMATION.—The information to be provided 
in the notice under subsection (b) is— 
"(1) the sanitary or phytosanitary standards under consid-
eration or planned for consideration by that organization; 
"(2) for each sanitary or phytosanitary standard specified 
in paragraph (1)— 
"(A) a description of the consideration or planned 
consideration of the standard; 
"(B) whether the United States is participating or plans 
to participate in tiie consideration of the standard; 
"(C) the agenda for the United States participation, 
if any; and 
(D) the agency responsible for representing the United 
States with respect to the standard. 
"(d) PUBLIC COMMENT.—^The agency specified in subsection 
(c)(2)(D) shall provide an opportunity for pubUc comment with 
respect to the standards for which the agency is responsible and 
s h ^ take the comments into account in participating in the consid-
eration of the standards and in proposing matters to be considered 
by the organization. 
"SEC. 492. EQUIVALENCE DETERMINATIONS. 
"(a) IN GENERAL.—An agency may not determine that a sanitary 
or phytosanitary measmre of a foreign country is equivalent to 
a sanitary or phytossmitaiy measure established under the author-
ity of Federal law imless the agency determines that the sanitEiry 
or phytosanitary measure of the foreign country provides at least 
the same level of sanitary or phj^sanitary protection as the com-
parable sanitary or phytosanitary measure established under the 
authority of Federal law. 
"(b) FDA DETERMINATION.—If the Commissioner proposes to 
issue a determination of the equivalency of a samtary or 
phytosanitary measure of a foreign coimtry to a measure that 
is required to be promulgated as a rule under the Federal Food, 
Drug, and Cosmetic Act (21 U.S.C. 301 et seq.) or other statute 
administered by the Food and Drug Administration, the Commis-
sioner shall issue a proposed regulation to incorporate such deter-
mination and shall include in the notice of proposed rulemaking 
the basis for the determination that the sanitary or phytosanitary 
measure of a foreign country provides at least the same level 
of sanitary or phytosanitary protection as the comparable Federal 
sanitary or phytosanitary measure. The Commissioner shall provide 
opportunity for interestejd persons to comment on the proposed 
regulation. The Commissioner shall not issue a final regulation 
based on the proposal without taking into account the comments 
received. 
Federal 
Register, 
publication. 
19 u s e 2578a. 
Regulations. 
108 STAT. 4972 
PUBLIC LAW 103-465—DEC. 8, 1994 
^^J"^! 
"(c) NOTICE.—If the Commissioner proposes to issue a deter-
puWication 
mioation of the equivalency of a sanitary or ph3^sanitary measure 
of a foreign country to a sanitary or phystosanitary measure of 
the Food and Drug Administration that is not required to be promul-
gated as a rule under the Federal Food, Drug, and Cosmetic Act 
or otier statute administered by the Food and Drug Administration, 
the Conmiissioner shall publish a notice in the Federal Register 
that identifies the basis for the determination that the measiu^ 
provides at least the same level of sanitary or phytosanitary protec-
tion as the comparable Federal sanitary or phytosanitary measure. 
The Conmiissioner shall provide opportunity for interested persons 
to conmient on the notice. The Commissioner shall not issue a 
final determination on the issue of equivalency without taking 
into account the comments received. 
19 use 2578b. 
"SEC. 493. DEFINITIONS. 
"(a) IN GENERAL.—As used in this subtitle: 
"(1) AGENCY.—The term 'agency^ means a Federal depart-
ment or agency (or combination of Federal depsuiments or 
agencies). 
"(2) COMMISSIONER.—The term 'Commissioner' means the 
Commissioner of Food and Drugs. 
"(3) INTERNATIONAL STANDARD-SETTING ORGANIZATION.— 
The term International standard-setting organization' means 
an organization consisting of representatives of 2 or more coun-
tries, tiie purpose of whicn is to negotiate, develop, promulgate, 
or amend an international standard. 
"(4) SANITARY OR PHYTOSANITARY STANDARD.—The term 
'sanitary or phytosanitary standard' means a standard intended 
to form a basis for a sanitary or phytosanitary measure. 
"(5) INTERNATIONAL STANDARD.—The term International 
standard' means a standard, guideUne, or recommendation— 
"(A) regarding food safety, adopted by the Codex 
Alimentarius Conmiission, including a standard, guideUne, 
or recommendation regarding decomposition elaborated by 
the Codex Conunittee on Fish and Fishery Products, food 
additives, contaminants, hygienic practice, and methods 
of analysis and sampUng; 
"(B) regarding animal heedth and zoonoses, developed 
under the auspices of the International Of&ce of Epizootics; 
"(C) regarding plant health, developed under the aus-
pices of the Secretariat of the International Plant Protec-
tion Convention in cooperation with the North American 
Plant Protection Organization; or 
"(D) estabUshea by or developed under any other inter-
national organization agreed to by the NAFTA countries 
(as defined in section 2(4) of the North American Free 
Trade Agreement Implementation Act) or by the WTO 
members (as defined in section 2(10) of tiie Uruguay Round 
Agreements Act). 
"(b) OTHER DEFINITIONS.—^The definitions set forth in section 
463 apply for purposes of this subtitie except that in applying 
paragraph (7) of section 463 with respect to a sanitary or 
phytosanitaiy measure of a foreign country, any reference iu such 
paragrsmh to the United States shall be deemed to be a reference 
to that foreign country.". 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4973 
Subtitle C—Standards 
SEC. 441. THE FE3)ERAL SEED ACT. 
The Federal Seed Act (7 U.S.C. 1551 et seq.) is amended— 
(1) in section 301(a) (7 U.S.C. 1581(a))— 
(A) by striking "(a)"; 
(B) in paragraph (1), by striking ", or is required to 
be stained and is not so stained, under the terms of this 
title,''; 
(C) by striking psiragraph (3); and 
(D) by redesignating paragraphs (4) and (5) as para-
graphs (3) and (4), respectively; 
(2) in section 302 (7 U.S.C. 1582)— 
(A) in subsection (a), by striking "staining," both places 
it appears; and 
(B) by striking subsection (e); 
(3) by striking section 303 (7 U.S.C. 1585) and inserting 
the following new section: 
"SEC. 303. CERTAIN SEEDS NOT ADAPTED FOR GENERAL AGRICUL-
TURAL USE. 
"Whenever the Secretary of Agriculture, after a pubUc hearing, 
determines that seed of alfalfa or red clover from any foreign 
coimtry is not adapted for general agricultural use in the United 
States, the Secretary shall pubUsh the determination and the rea-
sons for the determination."; and 
(4) in section 304 (7 U.S.C. 1586)— 
(A) in subsection (a)— 
(i) by inserting "or" at the end of paragraph (2); 
(ii) by striking the semicolon at the end ot para-
graph (3) and inserting a period; and 
(iii) by striking paragraphs (4) through (7); 
(B) by stnkiiig subsection (b); and 
(C) by redesignating subsection (c) as subsection (b). 
Subtitle D—General Effective Date 
SEC. 451. GENERAL EFFEC^nVE DATE. 
19 USC 3601 
Except as otherwise provided in this titie, this titie, and the 
"° ® 
amendments made by this titie, shall take effect on the date of 
entry into force of the WTO Agreement with respect to the United 
States. 
TITLE V—INTELLECTUAL PROPERTY 
SEC. 501. DEFINrnON. 
17 USC 101 note. 
For purposes of this titie— 
(1) the term "WTO Agreement" has the meaning given 
that term in section 2(9) of the Uruguay Round Agreements 
Act; and 
(2) the term "WTO member country" has the meaning 
given that term in section 2(10) of the Uruguay Round Agree-
ments Act. 
108 STAT. 4974 
PUBLIC LAW 103-465—DEC. 8, 1994 
Subtitle A—Copyright Provisions 
SEC. 611. RENTAL RIGHTS IN COMPUTER PROGRAMS. 
Section 804(c) of the Computer Software Rental Amendments 
Act of 1990 (17 U.S.C. 109 note; 104 Stat 5136) is amended by 
striking the first sentence. 
SEC. 612. CIVIL PENALTIES FOR UNAUTHORIZED FIXATION OF AND 
TRAFFICKING IN SOUND RECORDINGS AND MUSIC VID-
EOS OF LIVE MUSICAL PERFORMANCES. 
(a) IN GENERAL.—Title 17, United States Code, is amended 
by adding at the end the following new chapter: 
"CHAPTER 11—SOUND RECORDINGS AND 
MUSIC VIDEOS 
"Sec. 
"1101. Unauthorized fixation and trafficking in sound recordings and music videos. 
"§1101. Unauthorized fixation and trafficking in sound 
recordings and music videos 
"(a) UNAUTHORIZED ACTS.—^Anyone who, without the consent 
of the performer or performers involved— 
"(1) fixes the sounds or sounds and images of a Uve musical 
performance in a copy or phonorecord, or reproduces copies 
or phonorecords of such a performance from an unauthorized 
fixation, 
"(2) transmits or otherwise communicates to the pubUc 
the sounds or sounds and images of a five musical performance, 
or 
"(3) distributes or offers to distribute, sells or offers to 
sell, rents or offers to rent, or traffics in any copy or phonorecord 
fixed as described in paragraph (1), regardless of whether the 
fixations occurred in the United States, 
shall be subject to the remedies provided in sections 502 through 
505, to the same extent as an infringer of copyright. 
"(b) DEFINITION.—^As used in this section, the term 'traffic in' 
means transport, transfer, or otherwise dispose of, to another, as 
consideration for anjrthing of value, or make or obtain control of 
with intent to transport, transfer, or dispose of 
"(c) APPLICABILITY.—^This section shall apply to any act or acts 
that occur on or after the date of the enactment of tiie Uruguay 
Round Agreements Act 
"(d) STATE LAW NOT PREEMPTED.—^Nothing in this section may 
be construed to annul or limit any rights or remedies under the 
common law or statutes of any State.". 
(b) CONFORMING AMENDMENT.—The table of chapters for title 
17, United States Code, is amended by adding at the end the 
following: 
"11. Sound Recordings and Music Videos 
1101". 
SEC. 613. CRIMINAL PENALTIES FOR UNAUTHORIZED FIXATION OF 
AND TRAFFICKING IN SOUND RECORDINGS AND MUSIC 
VIDEOS OR LIVE MUSICAL PERFORMANCES. 
(a) IN GENERAL.—Chapter 113 of title 18, United States Code, 
is amended by inserting after section 2319 the following: 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4975 
^§ 2319A. Unauthorized fixation of and trafficking in sound 
recordings and music videos of live musical 
performances 
"(a) OFFENSE.—^Whoever, without the consent of the performer 
or performers involved, knowingly and for purposes of commercial 
advantage or private financial gain— 
"(1) fixes the sounds or soimds and images of a live musical 
performance in a copy or phonorecord, or reproduces copies 
or phonorecords of such a performance fix)m an unauthorized 
fixation; 
"(2) transmits or otherwise conununicates to the pubUc 
the sounds or sotmds and images of a five musical performance; 
or 
"(3) distributes or offers to distribute, sells or offers to 
seU, rents or offers to rent, or traffics in any copy or phonorecord 
fixed as described in paragraph (1), regardless of whether the 
fixations occurred in the United States; 
shall be imprisoned for not more than 5 years or fined in the 
amount set forth in this title, or both, or if tiie offense is a second 
or subsequent offense, shaU be imprisoned for not more than 10 
years or fined in the amount set forth in this title, or both. 
"(b) FORFEITURE AND DESTRUCTION.—When a person is con-
victed of a violation of subsection (a), the coiu*t snaU order the 
forfeiting and destruction of £iny copies or phonorecords created 
in violation thereof, as well as any plates, molds, matrices, masters, 
tapes, and film negatives by means of which such copies or 
phonorecords may be made. The coiut may also, in its discretion, 
order the forfeiture and destruction of any other equipment by 
means of which such copies or phonorecoras may be reproduced, 
taking into account the nature, scope, and proportionahty of the 
use of the equipment in tiie offense. 
"(c) SEIZURE AND FORFEITURE.—If copies or phonorecords of 
sounds or soimds and images of a five musical performance are 
fixed outside of the United States without the consent of the per-
former or performers involved, such copies or phonorecords are 
subject to seizure and forfeiture in the United States in the same 
manner as property imported in violation of the customs laws. 
The Secretary of the Treasury shall, not later than 60 days after 
the date of the enactment of the Uruguay Round Agreements Act, 
issue regulations to carry out this subsection, including regulations 
by which any performer may, upon payment of a specified fee, 
be entitied to notification by the United States Customs Service 
of the importation of copies or phonorecords that appear to consist 
of imauthorized fixations of the sounds or sounds and images of 
a five musical performance. 
"(d) DEFINITIONS.—^As used in this section— 
"(1) the terms 'copy*, fixed', 'musical work', 'phonorecord', 
'reproduce', 'sound recordings', and 'transmif mean those terms 
within the meaning of titie 17; and 
"(2) the term 'traffic in' means transport, transfer, or other-
wise dispose of, to {mother, £is consideration for anjrthing of 
value, or make or obtain control of with intent to transport, 
transfer, or dispose of. 
"(e) APPLICABILITY.—This section shall apply to any Act or 
Acts that occur on or after the date of the enactment of the Uruguay 
Round Agreements Act". 
108 STAT. 4976 
PUBLIC LAW 103-465—DEC. 8, 1994 
(b) CONFORMING AMENDMENT.—The table of sections for chapter 
113 of title 18, United States Code, is amended by inserting Euler 
the item relating to section 2319 the following: 
''2319A. Unauthorized fixation of and trafficking in sound recordings and music vid-
eos of live musical performances.". 
SEC. 614. RESTORED WORKS. 
(a) IN GENERAL.—Section 104A of title 17, United States Code, 
is amended to read as foUows: 
"§ 104A. Copyright in restored works 
"(a) AUTOMATIC PROTECTION AND TERM.— 
"(1) TERM.— 
"(A) Copyright subsists, in accordance with this section, 
in restored works, and vests automatically on the date 
of restoration. 
"(B) Any work in which copyright is restored under 
this section shall subsist for the remainder of the term 
of copjrright that the work would have otherwise been 
granted in the United States if the work never entered 
the public domain in the United States. 
"(2) EXCEPTION.—^Any work in which the copyright was 
ever owned or administered by the Alien Property Custodian 
and in which the restored copyright would be owned by a 
government or instrumentsiHty tnereof, is not a restored work. 
(b) OWNERSHIP OF RESTORED COPYRIGHT.—A restored work 
vests initially in the author or initial rightholder of the work 
as determined by the law of the source coimtiy of the work. 
"(c) FILING OF NOTICE OF INTENT TO ENFORCE RESTORED COPY-
RIGHT AGAINST RELIANCE PARTIES.—On or after the date of restora-
tion, £iny person who owns a copyright in a restored work or 
an exclusive right therein may file with the Copyright Office a 
notice of intent to enforce that person's copyright or exclusive right 
or may serve such a notice directly on a reliance party. Acceptance 
of a notice by the Copyright Office is effective as to any reUance 
parties but shall not create a presumption of the vaHdity of any 
of the facts stated therein. Service on a rehance party is effective 
as to that reliance party and any other reUance parties with actual 
knowledge of such service and of the contents of that notice. 
"(d) REMEDIES FOR INFRINGEMENT OF RESTORED COPYRIGHTS.— 
"(1) ENFORCEMENT OF COPYRIGHT IN RESTORED WORKS IN 
THE ABSENCE OF A RELIANCE PARTY.—^As against any party 
who is not a reUance psirty, the remedies provided in chapter 
5 of this title slmll be available on or after the date of restora-
tion of a restored copyright with respect to an act of infringe-
ment of the restorea copyright that is commenced on or after 
the date of restoration. 
"(2) ENFORCEMENT OF COPYRIGHT IN RESTORED WORKS AS 
AGAINST RELIANCE PARTIES.—^As against a reUance psirty, except 
to the extent provided in paragraphs (3) and (4), the remedies 
provided in chapter 5 of this title shall be available, with 
respect to an act of infringement of a restored copyright, on 
or after the date of restoration of the restored copyright if 
the requirements of either of the following subparagraphs are 
met: 
"(A)(i) The owner of the restored copjoight (or such 
owner's agent) or the owner of an exclusive right therein 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4977 
(or such owner's agent) files with the Copyright Office, 
during the 24-month period heginning on the date of res-
toration, a notice of intent to enforce the restored copyright; 
and 
"(iiXD the act of infringement commenced after the 
end of the 12-month period beginning on the date of 
publication of the notice in the Federal Register; 
"(II) the act of infringement commenced before the 
end of the 12-month period described in subclause (I) and 
continued after the end of that 12-month period, in which 
case remedies shall be available only for infringement 
occurring sifter the end of that 12-month period; or 
"(III) copies or phonorecords of a work in which copy-
right has been restored under this section are made after 
publication of tlie notice of intent in the Federal Register. 
"(B)(i) The owner of the restored copyright (or such 
owner's agent) or the owner of an exclusive right therein 
(or such owner's agent) serves upon a reUance party a 
notice of intent to enforce a restored copyright; and 
"(ii)(I) the act of infringement commenced after the 
end of tiie 12-month period beginning on the date the 
notice of intent is received; 
"(II) the act of infringement commenced before the 
end of the 12-month period described in subclause (I) and 
continued after the end of that 12-month period, in which 
case remedies shall be available only for tiie infringement 
occurring after the end of that 12-month period; or 
"(III) copies or phonorecords of a work in which copy-
right has been restored under this section are made after 
receipt of the notice of intent. 
In the event that notice is provided under both subparagraphs 
(A) and (B), the 12-month period referred to in such subpara-
graphs shall run from the earUer of pubUcation or service 
of notice. 
"(3) EXISTING DERIVATIVE WORKS.—(A) In the case of a 
derivative work that is based upon a restored work and is 
created— 
"(i) before the date of the enactment of the Uruguay 
Round Agreements Act, if the source country of the deriva-
tive work is an eligible country on such date, or 
"(ii) before the date of adherence or proclamation, if 
the source country of the derivative work is not an ehgible 
country on such date of enactment, 
a reUance party may continue to exploit that work for the 
duration of the restx)red copyright if the reliance party pays 
to the owner of the restored copyright reasonable compensation 
for conduct which would be subject to a remedy for infringement 
but for the previsions of this paragraph. 
"(B) In the absence of an agreement between the parties, 
the amount of such compensation shaU be determinea by an 
action in United States district court, and shall reflect any 
harm to the actual or potential market for or value of the 
restored work from the reliance party's continued exploitation 
of the work, as well as compensation for the relative contribu-
tions of expression of the author of the restored work and 
the rehance party to the derivative work. 
Federal 
Register, 
publication. 
Federal 
Register, 
publication. 
108 STAT. 4978 
PUBLIC LAW 103-465—DEC. 8, 1994 
Federal 
Register, 
publication. 
Federal 
Register, 
publication. 
Federal 
Register, 
publication. 
"(4) COMMENCEMENT OF INFRINGEMENT FOR RELIANCE PAR-
TIES.—For purposes of section 412, in the case of reliance 
parties, infringement shall be deemed to have commenced 
before registration when acts which would have constituted 
infringement had the restored work been subject to copyright 
were commenced before the date of restoration. 
**(e) NOTICES OF INTENT TO ENFORCE A RESTORED COPYRIGHT.— 
"(1) 
NOTICES 
OF INTENT 
FILED 
WITH THE 
COPYRIGHT 
OFFICE.—(A)(i) A notice of intent filed with the Copyright Office 
to enforce a restored copyright shall be signed by the owner 
of the restored copyright or the owner of an exclusive right 
therein, who files the notice under subsection (d)(2)(A)(i) (here-
after in this paragraph referred to as the 'owner*), or by the 
owner's agent, shall identify the titie of the restored work, 
and shall include an EngUsh translation of tiie titie and any 
other alternative tities known to the owner by which the 
restored work may be identified, and an address and telephone 
number at which the owner may be contacted. If the notice 
is signed by an agent, the agency relationship must have been 
constituted in a writing signed by the owner before the fOing 
of the notice. The Copyright Office may specifically require 
in regulations other information to be included in the notice, 
but failure to provide such other information shall not invali-
date the notice or be a basis for refusal to list the restored 
work in the Federjil Register. 
"(ii) If a work in which copjndght is restored has no formal 
titie, it shall be described in the notice of intent in detail 
sufficient to identify it 
"(iii) Minor errors or omissions may be corrected by further 
notice at any time after the notice of intent is filed. Notices 
of corrections for such minor errors or omissions shall be 
accepted after the period estabUshed in subsection (d)(2)(A)(i). 
Notices shall be pubUshed in the Federal Register pursuant 
to subparagraph (B). 
"(B)(i) The Register of Copyrights shall publish in the Fed-
eral Register, commencing not later than 4 months after the 
date of restoration for a psirticuleir nation and every 4 months 
thereafter for a period of 2 years, Usts identifying restored 
works and the ownership thereof if a notice of intent to enforce 
a restored copyright has been filed. 
"(ii) Not less than 1 Hst containing aU notices of intent 
to enforce shall be maintained in the PubUc Information Office 
of the Copyright Office and shaU be available for pubUc inspec-
tion and copying during regular business hours pursuant to 
sections 705 and 708. Such list shall also be pubHshed in 
the Federal Register on an annual basis for the first 2 years 
after tiie appUcable date of restoration. 
"(C) The Register of Copyrights is authorized to fix reason-
able fees based on the costs of receipt, processing, recording, 
and pubUcation of notices of intent to enforce a restored copy-
right and corrections thereto. 
"(D)(i) Not later than 90 days before the date the Agree-
ment on Trade-Related Aspects of Intellectual Property referred 
to in section 101(d)(15) of the Uruguay Round Agreements 
Act enters into force with respect to the United States, the 
Copyright Office shall issue and publish in the Federal Register 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4979 
regulations governing the filing under this subsection of notices 
of intent to enforce a restored copyright. 
"(ii) Such regulations shall permit owners of restored copy-
rights to file simultaneously for registration of the restored 
copyright 
"(2) NOTICES OF INTENT SERVED ON A RELIANCE PARTY.— 
(A) Notices of intent to enforce a restored copyright may be 
served on a reUance party at any time after the date of restora-
tion of the restored copyright. 
"(B) Notices of intent to enforce a restored copyright served 
on a reliance party shall be signed by the owner or the owner's 
agent, shall identify the restored work and the work in which 
the restored work is used, if any, in detail sufficient to identify 
them, and shall include an EngUsh translation of the title, 
any other alternative titles known to the owner by which the 
work may be identified, the use or uses to which the owner 
objects, and an address and telephone ntunber at which the 
rehance party may contact the owner. If the notice is signed 
by an agent, me agency relationship must have been constituted 
in writing and signed by the owner before service of the notice. 
"(3) EFFECT OF MATERIAL FALSE STATEMENTS.—Any mate-
rial false statement knowingly made with respect to any 
restored copyright identified in any notice of intent shall make 
void aU claims and assertions made with respect to such 
restored copyright. 
"(f) IMMUNITY FROM WARRANTY AND RELATED LD^ILITY.— 
"(1) IN GENERAL.—^Any person who warrants, promises, 
or guarantees that a work does not violate an exclusive right 
granted in section 106 shaU not be liable for legal, equitable, 
arbitral, or administrative reUef if the warranty, promise, or 
guarantee is breached by virtue of the restoration of copyright 
under this section, if such warranty, promise, or guarantee 
is made before January 1, 1995. 
"(2) PERFORMANCES.—No person shall be required to per-
form any act if such performance is made infiinging by virtue 
of the restoration of copyright under the provisions of this 
section, if the obligation to perform was undertaken before 
January 1, 1995. 
"(g) 
PROCLAMATION OF COPYRIGHT RESTORATION.—Whenever 
the President finds that a particular foreign nation extends, to 
works by authors who are nationals or domiciliaries of the United 
States, restored copyright protection on substantially the same basis 
as provided under this section, 'the President may by proclamation 
extend restored protection provided under this section to any work— 
"(1) of which one or more of the authors is, on the date 
of first pubUcation, a national, domicihary, or sovereign author-
ity of that nation; or 
"(2) which was first pubUshed in that nation. 
The President may revise, suspend, or revoke any such proclamation 
or impose any conditions or limitations on protection under such 
a proclamation. 
"(h) DEFINITIONS.—For purposes of this section and section 
109(a): 
"(1) The term 'date of adherence or proclamation' means 
the earUer of the date on which a foreign nation which, as 
of the date the WTO Agreement enters into force with respect 
108 STAT. 4980 
PUBLIC LAW 103-465—DEC. 8, 1994 
to the United States, is not a nation adhering to the Berne 
Convention or a WTO member country, becomes— 
"(A) a nation adhering to the Berne Convention or 
a WTO member country; or 
"(B) subject to a Residential proclsunation under sub-
section (g). 
"(2) The 'date of restoration' of a restored copyright is 
the later of— 
"(A) the date on which the Agreement on Trade-Related 
Aspects of Intellectual Property referred to in section 
101(d)(15) of the Uruguay Round Agreements Act enters 
into force with respect to the United States, if the source 
country of the restored work is a nation adhering to the 
Berne Convention or a WTO member country on such 
date; or 
"(B) the date of adherence or proclamation, in the 
case of any other source country of the restored work. 
"(3) The term 'eUgible coiintry* means a nation, other than 
the United States, that is a WTO member country, adheres 
to the Berne Convention, or is subject to a proclamation under 
section 104A(g). 
"(4) The term VeHance party* means any person who— 
"(A) with respect to a particular work, engages in acts, 
before the source country of that work becomes an eUgible 
country, which would have violated section 106 if the 
restored work had been subject to copyright protection, 
and who, after the soiurce country becomes an eUgible coun-
try, continues to engage in such acts; 
"(B) before the source country of a particular work 
becomes an eligible country, makes or acquires 1 or more 
copies or phonorecords of that work; or 
"(C) as the result of the sale or other disposition of 
a derivative work covered under subsection (d)(3), or signifi-
cant assets of a person described in subparagraph (A) or 
(B), is a successor, assignee, or licensee of that person. 
"(5) The term ^restored copyright means copjnight in a 
restored work under this section. 
"(6) The term ^restored work' means an original work of 
authorship that— 
"(A) is protected under subsection (a); 
"(B) is not in the pubUc domain in its source country 
through expiration of term of protection; 
"(C) is in the pubUc domain in the United States due 
to— 
"(i) noncompHance with formalities imposed at any 
time by United States copyright law, including failure 
of renewal, lack of proper notice, or failure to comply 
with any manufacturing requirements; 
"(ii) lack of subject matter protection in the case 
of sound recordings fixed before February 15, 1972; 
or 
"(iii) lack of national eligibility; and 
"(D) li£is at least one author or rightholder who was, 
at the time the work was created, a national or domiciliary 
of an eligible country, and if published, was first published 
in an eligible country and not pubUshed in the United 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4981 
States during the 30-day period following publication in 
such eUgible country. 
"(7) The term Vi^htnolder' means the person— 
"(A) who, with respect to a sound recording, first fixes 
a sound recording with authorization, or 
"(B) who has acquired rights from the person described 
in subparagraph (A) by means of any conveyance or by 
operation of law. 
"(8) The 'source country* of a restored work is— 
"(A) a nation other than the United States; 
"(B) in the case of an unpublished work— 
"(i) the ehgible country in which the author or 
rightholder is a national or domiciliaiy, or, if a restored 
work has more than 1 author or rightholder, the major-
ity of foreign authors or rightholders are nationals 
or domiciliari.es of eligible countries; or 
"(ii) if the majority of authors or rightholders are 
not foreign, the nation other than the United States 
which has the most significant contacts with the work; 
and 
"(C) in the case of a pubHshed work— 
"(i) the ehgible country in which the work is first 
published, or 
"(ii) if the restored work is published on the same 
day in 2 or more eUgible countries, the eligible country 
wMch has the most significant contacts with the work. 
"(9) The terms WTO Agreement and *WTO member cotm-
trjr* have the meanings given those terms in paragraphs (9) 
and (10), respectively, of section 2 of the Uruguay Round Agree-
ments Act.". 
(b) LIMITATION.—Section 109(a) of title 17, United States Code, 
is Eunended by adding at the end the following: "Notwithstanding 
the preceding sentence, copies or phonorecoras of works subject 
to restored copyright under section 104A that are manufactured 
before the date of restoration of copyright or, with respect to reUance 
parties, before pubHcation or service of notice under section 104A(e), 
may be sold or otherwise disposed of without the authorization 
of the owner of the restored copyright for purposes of direct or 
indirect commercial advantage only during the 12-month period 
beginning on— 
(1) the date of the pubUcation in the Federal Register 
of the notice of intent filed with the Copyright Office under 
section 104A(d)(2)(A), or 
"(2) the date of the receipt of actual notice served under 
section 104A(d)(2)(B), 
whichever occurs first.". 
(c) CONFORMING AMENDMENT.—The item relating to section 
104A in the table of sections for chapter 1 of titie 17, United 
States Code, is amended to read as foUows: 
"104A. Copyright in restored works.". 
Subtitle B—Trademark Provisions 
SEC. 521. DEFINrnON OF "ABANDONED". 
Section 45 of the Act entitled "An Act to provide for the registra-
tion and protection of trade-marks used in commerce, to carry 
108 STAT. 4982 
PUBLIC LAW 103-465—DEC. 8, 1994 
out the provisions of certsdn iatemational conventioiis, and for 
other pirrooses", approved JuW 5, 1946 (15 U.S.C. 1127) (hereafter 
in this title referrea to as the *Trademark Act of 1946"), is amended 
by amending the paragraph defining "abandoned" to read as follows: 
"A mark shall be deemed to oe 'abandoned' if either of the 
following occurs: 
"(1) When its use has been discontinued with intent not 
to resume such use. Intent not to resume may be inferred 
fi*om circumstances. Nonuse for 3 consecutive years shall be 
prima fecie evidence of abandonment *Use' of a mark means 
the bona fide use of such mark made in the ordinary course 
of trade, and not made merely to reserve a right in a mark. 
"(2) When any coiu^e of conduct of the owner, including 
acts of omission as well as conmiission, causes the mark to 
become the generic name for the goods or services on or in 
connection with which it is used or otherwise to lose its signifi-
cance as a mark. Purchaser motivation shall not be a test 
for determining abandonment under this paragraph.". 
SEC. 622. NONREGISTEIABILITY 
OF 
MISLEADING 
GEOGRAPHIC 
INDICATIONS FOR WINES AND SPIRITS. 
Subsection (a) of section 2 of the Trademark Act of 1946 (15 
U.S.C. 1052(a)) is amended to read as foUows: 
"(a) Consists of or comprises immoral, deceptive, or scandalous 
matter, or matter which may disparage or falsely suggest a connec-
tion with persons, Uving or dead, institutions, beHefe, or national 
symbols, or bring them into contempt, or disrepute; or a geographi-
cal indication which, when used on or in connection with wines 
or spirits, identifies a place other than the origin of the goods 
and is first used on or in connection with wines or spirits by 
the appHcant on or after one year after the date on wnich the 
WTO Agreement (as defined in section 2(9) of the Uruguay Round 
Agreements Act) enters into force with respect to the United 
States.". 
15 use 1052 
SEC. 523. EFFECTIVE DATE. 
The amendments made by this subtitle take effect one year 
after the date on which tJie WTO Agreement enters into force 
with respect to the United States. 
Subtitle C—Patent Provisions 
SEC. 531. TREATMENT OF INVENTIVE ACTIVI'IY. 
(a) IN GENERAL.—Section 104 of title 35, United States Code, 
is amended to read as foUows: 
^§ 104. Invention made abroad 
"(a) IN GENERAL.— 
"(1) PROCEEDINGS.—In proceedings in the Patent and 
Trademark Office, in the courts, and before any other competent 
authority, an applicant for a patent, or a patentee, may not 
estabhsn a date of invention by reference to knowledge or 
use thereof, or other activity with respect thereto, in a foreign 
country other thsin a NAFTA country or a WTO member coun-
try, except as provided in sections 119 and 365 of this titie. 
"(2) RIGHTS.—If an invention was made by a person, civil 
or military— 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4983 
"(A) while domiciled in the United States, and serving 
in any other country in connection with operations by or 
onbenalf of the United States, 
"(B) while domiciled in a NAFTA country and serving 
in another country in connection witih operations by or 
on behalf of that NAFTA country, or 
"(C) while domiciled in a WTO member country and 
serving in another countty in connection with operations 
by or on behalf of that WT(J member country, 
that person shall be entitled to the same rights of priority 
in the United States with respect to such invention as if such 
invention had been :made in the United States, that NAFTA 
country, or that WTO member country, as the case may be. 
"(3) USE OF INFORMATION.—To the extent that any informa-
tion in a NAFTA country or a WTO member country concerning 
knowledge, use, or other activity relevant to proving or disprov-
ing a date of invention has not been made available for use 
in a proceeding in tlie Patent and Trademark Office, a court, 
or any other competent authority to the same extent as such 
information could be made available in the United States, 
the Conmiissioner, court, or such other authority shall draw 
appropriate inferences, or take other action pernutted by stat-
ute, rule, or regulation, in favor of the party that requested 
the information in the proceeding. 
"(b) DEFINITIONS.—^As used in this section— 
"(1) the term *NAFTA countiy* has the meaning given 
that term in section 2(4) of the North American Free Trade 
Agreement Implementation Act; and 
"(2) the term *WTO member country' has the meaning 
given that term in section 2(10) of the Uruguay Round Agree-
ments Act.". 
(b) EFFECTIVE DATE.— 
35 use 104 note. 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendment made by this section shaU apply to aU patent 
appHcations that are filed on or after the date that is 12 
months after the date; of entry into force of the WTO Agreement 
with respect to the United States. 
(2) ESTABUSHMENT OF DATE.—^An appUcant for a patent, 
or a patentee, may not establish a date of invention for purposes 
of title 35, United States Code, that is earlier than 12 months 
after the date of entry into force of the WTO Agreement with 
respect to the United States by reference to knowledge or 
use, or other activity, in a WT(J member country, except as 
provided in sections 119 and 365 of such titie. 
SEC. 
5
3
2
. 
PATENT 
TERM 
AND 
INTERNAL 
PRIORITY. 
(a) PATENT RIGHTS.— 
(1) CONTENTS AND TERM OF PATENT.—Section 154 of titie 
35, United States Code, is amended to read as follows: 
*
*
§ 154. Contents and term of patent 
"(a) IN GENERAL.— 
"(1) CONTENTS.—Every patent shall contain a short titie 
of the invention and a grant to the patentee, his heirs or 
assigns, of the right to exclude others fi^m making, using, 
offering for sale, or selling the invention throughout the United 
States or importing tJie invention into the United States, and. 
108 STAT. 4984 
PUBLIC LAW 103-465—DEC. 8, 1994 
if the invention is a process, of the right to exclude others 
from using, offering for sale or seUing throughout Hie United 
States, or importing into the United States, products made 
by that process, referring to the specification for the particulars 
' 
thereof 
"(2) TERM.—Subject to the payment of fees under this title, 
such grant shall be for a term beginning on the date on which 
the patent issues and ending 20 years from the date on which 
the appUcation for the patent was filed in the United States 
or, if the appUcation contains a specific reference to an earher 
filed application or appUcations imder section 120, 121, or 
365(c) of this title, fix)m the date on which the earUest such 
application was filed. 
"(3) PRIORITY.—Priority under section 119, 365(a), or 365(b) 
of this title shall not be taken into account in determining 
the term of a patent 
"(4) SPECIFICATION AND DRAWING.—A copy of the specifica-
tion and drawing shall be annexed to the patent and be a 
part of such patent 
(b) TERM EXTENSION.— 
"(1) INTERFERENCE DELAY OR SECRECY ORDERS.—If the issue 
of an original patent is delayed due to a proceeding under 
section 135(a) of this title, or because the application for patent 
is placed under an order pursuant to section 181 of this title, 
the term of the patent shall be extended for the period of 
delay, but in no case more than 5 years. 
"(2) EXTENSION FOR APPELLATE REVIEW.—If the issue of 
a patent is delayed due to appellate review by the Board 
of Patent Appeals and Interferences or by a Federal court 
and the patent is issued pursuant to a decision in the review 
reversing an adverse determination of patentabiUty, the term 
of the patent shall be extended for a period of time but in 
no CEise more than 5 years. A patent shall not be eUgible 
for extension under this paragraph if it is subject to a terminal 
disclaimer due to the issue of another patent claiming subject 
matter that is not patentably distinct from that imder appellate 
review. 
"(3) LIMITATIONS,—The period of extension referred to in 
paragraph (2)— 
"(A) shall include any period beginning on the date 
on which an appeal is filed under section 134 or 141 of 
this title, or on which £m action is commenced under section 
145 of tbis title, and ending on the date of a final decision 
in favor of the appUcant; 
"(B) shall be reduced by any time attributable to appel-
late review before the expiration of 3 years from the nling 
date of the appUcation for patent; and 
"(C) shall be reduced for the period of time during 
which the applicant for patent did not act with due diU-
gence, as determined by the Conmiissioner. 
(4) LENGTH OF EXTENSION.—The total duration of all exten-
sions of a patent under this subsection shall not exceed 5 
years. 
"(c) CONTINUATION.— 
"(1) DETERMINATION.—The term of a patent that is in force 
on or that results fix)m an appUcation filed before the date 
that is 6 months after the date of the enactment of the Uruguay 
c*5^g9S5^.::: 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4985 
Round Agreements Act shall be the greater of the 20-year 
term as provided in. subsection (a), or 17 years from grant, 
subject to any terminal disclaimers. 
"(2) REMEDIES.—The remedies of sections 283, 284, and 
285 of this title shall not apply to Acts which— 
"(A) were commenced or for which substantial invest-
ment was made before the date that is 6 months after 
the date of the enactment of the Uruguay Roxind Agree-
ments Act; and 
**(B) became infringing by reason of paragraph (1). 
"(3) REMUNERATION.—^Tne acts referred to in paragraph 
(2) may be continued only upon the payment of an equitable 
remuneration to the patentee that is determined in an action 
brought under chapter 28 and chapter 29 (other than those 
provisions excluded oy paragraph (2)) of this titie.". 
(2) PROVISION OF FURTHER LIMITED REEXAMINATION AND 
35 use 154 note. 
CONDITIONS OF RESTRICTION REQUIREMENTS.—(A) The Commis- 
Regulations. 
sioner of Patents and Trademarks shall prescribe regiilations 
to provide for further limited reexamination of appHcations 
that have been pending for 2 years or longer as of the effective 
date of section 154(aX2) of titie 35, United States Code, as 
added by paragraph (1) of this subsection, taking into account 
any reference made in such appUcation to any earlier filed 
appUcation under section 120, 121, or 365(c) of such titie. 
Tne Conmiissioner may establish appropriate fees for such fur-
ther limited reexamination. 
(B) The Commissioner of Patents and Trademarks shall 
prescribe regulations to provide for the examination of more 
than 1 independent and distinct invention in an appUcation 
that has been pending for 3 years or longer as of the effective 
date of section 154(a)(2) of titie 35, United States Code, as 
added by paragraph (1) of this subsection, taking into account 
any reference made in such appUcation to any earlier filed 
appUcation imder section 120, 121, or 365(c) of such titie. 
Tne Conunissioner may estabUsh appropriate fees for such 
examination. 
(b) ESTABLISHMENT OF A DOMESTIC PRIORITY SYSTEM.— 
(1) IN GENERAL,.—Section 119 of titie 35, United States 
Code, is amended— 
(A) by £imending the section caption to read as foUows: 
*
*
§ 119. Benefit of earlier filing date; right of priority"; 
(B) by designating the undesignated paragraphs as 
subsections (a), (b), (c), and (d), respectively; and 
(C) by adding at the end tiie following: 
"(e)(1) An appUcation for patent filed under section 111(a) or 
section 363 of this titie for an invention disclosed in the manner 
provided by the first paragraph of section 112 of this titie in 
a provisional appUcation filed under section 111(b) of this titie, 
by an inventor or inventors named in the provisional appUcation, 
snaU have the same effect, as to such invention, as though filed 
on the date of the provisional ^pUcation filed imder section 111(b) 
of this titie, if the appUcation for patent filed under section 111(a) 
or section 363 of this titie is filed not later than 12 months after 
the date on which the provisional application was filed and if 
it contains or is simended to contain a specific reference to the 
provisional application. 
79-194 O—95—14: QL 3 Part 6 
108 STAT. 4986 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(2) A provisional application filed under section 111(b) of this 
titie may not be reUed upon in any proceeding in the Patent 
and Trademark Office unless the fee set forth in subparagraph 
(A) or (C) of section 41(a)(1) of this titie has been paid and the 
provisional appUcation was pending on the filing date of the applica-
tion for patent under section 111(a) or section 363 of this titie.". 
(2) FEES.—Section 41(a)(1) of titie 35, United States Code, 
is amended by adding at the end the following: 
"(C) On filing each provisional application for an original 
patent, $150.". 
(3) APPLICATIONS.—Section 111 of titie 35, United States 
Code, is amended to read as foUows: 
"§111. Application 
"(a) IN GENERAL.— 
"(1) WRITTEN APPLICATION.—^An appUcation for patent shall 
be made, or authorized to be made, by the inventor, except 
as otherwise provided in this 
titie, 
in writing to the 
Commissioner. 
"(2) CONTENTS.—Such appUcation shall include— 
"(A) a specification as prescribed by section 112 of 
this titie; 
"(B) a drawing as prescribed by section 113 of this 
titie; and 
"(C) an oath by the appUcant as prescribed by section 
115 of this titie. 
"(3) FEE AND OATH.—The appUcation must be accompanied 
by the fee required by law. The fee and oath may be submitted 
after the specification and any required drawing are submitted, 
within such period and tmder such conditions, including the 
payment of a surcharge, as may be prescribed by the Conmiis-
sioner. 
"(4) FAILURE TO SUBMIT.—Upon failure to submit the fee 
and oath within such prescribed period, the appUcation shaU 
be regarded as abandoned, unless it is shown to the satisfaction 
of the Conmiissioner that the delay in submitting the fee and 
oatii was unavoidable or unintentional. The filing date of an 
appUcation shaU be the date on which the specification and 
any required drawing are received in the Patent and Trademark 
Office. 
"(b) PROVISIONAL APPLICATION.— 
"(1) AUTHORIZATION.—^A provisional appUcation for patent 
shaU be made or authorized to be made by the inventor, except 
as otherwise provided in this titie, in writing to the Commis-
sioner. Such appUcation shaU include— 
"(A) a specification as prescribed by the first paragraph 
of section 112 of this titie; and 
"(B) a drawing as prescribed by section 113 of this 
titie. 
"(2) CLAIM.—^A claim, as required by the second through 
fiftJi paragraphs of section 112, shaU not be required in a 
provisional appUcation. 
"(3) FEE.-—(A) The application must be accompanied by 
the fee required by law. 
"(B) The fee may be submitted after the specification and 
any required drawing are submitted, within such period and 
• 4'-(S?^- -
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4987 
under such conditions, including the payment of a surcharge, 
as may be prescribed by the Commissioner. 
"(C) Upon failure to submit the fee within such prescribed 
period, the application shall be regarded as abandoned, imless 
it is shown to the satisfaction of the Commissioner that the 
delay in submitting the fee was imavoidable or unintentional. 
(4) FILING DATE.—^The fiUng date of a provisional apphca-
tion shall be the date on which the specification and anv 
required drawing are received in the Patent and Trademark 
Office. 
"(5) ABANDONMISNT.—The provisional appHcation shall be 
regarded as abandoned 12 months after the nling date of such 
appUcation and shall not be subject to revival thereafter. 
"(6) OTHER BASIS FOR PROVISIONAL APPLICATION.—Subiect 
to all the conditionis in this subsection and section 119(e) of 
this title, and as prescribed by the Commissioner, an appUcation 
for patent filed under subsection (a) may be treated as a provi-
sional appUcation for patent. 
"(7) N o RIGHT OF PRIORITY OR BENEFIT OF EARLIEST FIUNG 
DATE.—^A provisional appUcation shaU not be entitled to the 
right of priority of any other appUcation under section 119 
or 365(a) of this title or to the benefit of an earUer filing 
date in the United States under section 120, 121, or 365(c) 
of this title. 
"(8) APPLICABLE; PROVISIONS.—The provisions of this title 
relating to appUcatiions for patent shall apply to provisional 
appUcations for patent, except as otherwise provided, and 
except that provisional appUcations for patent shaU not be 
subject to sections 115,131,135, and 157 of this title.". 
(c) CONFORMING CH/LNGES.— 
(1) Section 156(a)(2) of title 35, United States Code, is 
amended by inserting **under subsection (e)(1) of this section" 
(2) Section 172 of titie 35, United States Code, is 
amended— 
(A) by striking "section 119" and inserting "subsections 
(a) through (d) of section 119"; and 
(B) by inserting at the end the foUowing new sentence: 
"The right of priority provided for by section 119(e) of this titie 
shaU not apply to designs.". 
(3) Section 173 of titie 35, United States Code, is amended 
by inserting "fix>m the date of grant" after "years". 
(4) Section 365 of title 35, United States Code, is 
amended— 
(A) in subsection (a), by striking "section 119" and 
inserting "subsections (a) through (d) of section 119"; and 
(B) in subsection (b), by stnking "the first paragraph 
of section 119" and inserting "section 119(a)". 
(5) Section 373 of titie 35, United States Code, is amended 
by striking "section 119" and inserting "subsections (a) through 
(d) of section 119". 
(6) The table of sections for chapter 11 of titie 35, United 
States Code, is amended— 
(A) by striking the item relating to section 111 and 
inserting the foUowing: 
"111. Application."; 
and 
108 STAT. 4988 
PUBLIC LAW 103-465—DEC. 8, 1994 
(B) by striking the item relating to section 119 £ind 
inserting the following: 
"119. Benefit of earlier filing date; right of priority.". 
SEC. 533. PATENT RIGHTS. 
(a) DEFINITION OF INFRINGEMENT.—Section 271 of title 35, 
United States Code, is amended— 
(1) in subsection (a)— 
(A) by inserting ", offers to seU," after "uses"; and 
(B) by inserting "or imports into the United States 
any patented invention" after "the United States"; 
(2) in subsection (c), by striking "sells" and inserting "offers 
to sell or sells within the United States or imports into the 
United States"; 
(3) in subsection (e)— 
(A) in paragraph (1), by striking "or sell" and inserting 
"offer to sell, or sell within the United States or import 
into the United States"; 
(B) in paragraph (3), by striking "or selling" and insert-
ing "offering to sell, or seUing within the United States 
or importing into the United States"; 
(C) in paragraph (4)(B), by striking "or sale" and insert-
ing "offer to sell, or sale within the United States or 
importation into the United States"; and 
(D) in paragraph (4)(C), by striking "or sale" and insert-
ing "offer to sell, or sale within the United States or 
importation into the United States"; 
(4) in subsection (g)— 
(A) by striking "sells" and inserting "offers to sell, 
seUs,"; 
(B) by striking "importation, sale," and inserting 
"importation, offer to sell, sale,"; and 
(C) by striking "other use or" and inserting "other 
use, offer to sell, or'; and 
(5) by adding at the end the following: 
"(i) As used in this section, an 'offer for sale' or an 'offer 
to sell' by a person other than the patentee, or any designee of 
the patentee, is that in which the sale will occur before the expira-
tion of the term of the patent". 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (2) of section 41(c) of titie 35, United States 
Code, is amended to read as follows: 
"(2) A patent, the term' of which has been maintained as a 
result of the acceptance of a payment of a maintenance fee under 
this subsection, shall not abridge or affect the right of any person 
or that person's successors in business who made, purchased, offered 
to sell, or used anything protected by the patent within the United 
States, or imported anything protected by tne patent into the United 
States sifter the 6-month grace period but prior to the acceptance 
of a maintenance fee under this subsection, to continue the use 
of, to offer for sale, or to sell to others to be used, offered for 
sale, or sold, the specific thing so made, purchased, offered for 
sale, used, or imported. The court before which such matter is 
in question mav provide for the continued manufacture, use, offer 
for sale, or sale of the thing made, purchased, offered for sale, 
or used within the United States, or imported into the United 
States, as specified, or for the manufacture, use, offer for sale, 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4989 
or sale in the United States of which substantial preparation was 
made after the 6-monthL grace period but before the acceptance 
of a maintenance fee under this subsection, and the court may 
also provide for the continued practice of any process that is prac-
ticed, or for the practice of which substantial preparation was 
made, after the 6-month grace period but before the acceptance 
of a maintenance fee under this subsection, to the extent and 
under such terms as the court deems equitable for the protection 
of investments made or business commenced after the 6-month 
grace period but before the acceptance of a maintenance fee under 
this subsection.". 
(2) The second undesignated paragraph of section 252 of 
title 35, United States Code, is amended to read as follows: 
"A reissued patent shall not abridge or affect the right of 
any person or that person's successors in business who, prior to 
the grant of a reissue, made, purchased, offered to sell, or used 
within the United States, or imported into the United States, any-
thing patented by the reissued patent, to continue the use of, 
to offer to sell, or to sell to others to be used, offered for sale, 
or sold, the specific thing so made, purchased, offered for sale, 
used, or imported unless the making, using, offering for s£de, or 
selling of such thing infringes a valid claim of the reissued patent 
which was in the original patent. The court before which such 
matter is in question may provide for the continued manufacture, 
use, offer for sale, or sale of the thing made, purchased, offered 
for sale, used, or imported as specified, or for the manufacture, 
use, offer for sale, or sale in the United States of which substantial 
preparation was made before the grant of the reissue, and the 
court may also provide for the continued practice of any process 
patented by the reissue that is practiced, or for the practice of 
which substantial preparation was made, before the grant of the 
reissue, to the extent and under such terms as the court deems 
equitable for the protection of investments made or business com-
menced before the grant of the reissue.". 
(3) Section 262 of title 35, United States Code, is 
amended— 
(A) by striking "use or sell" and inserting "use, offer 
to sell, or sell"; and 
(B) by inserting "within the United States, or import 
the patented invention into the United States," after 
"invention". 
(4) Section 272 of title 35, United States Code, is amended 
by striking "not sold" and inserting "not offered for sale or 
sold". 
(5) Section 287 of title 35, United States Code, is 
amended— 
(A) in subsection (a)— 
(i) by striking "making or seUing" and inserting 
"making, offering for sale, or selling within the United 
States"; and 
(ii) by inserting "or importing any patented article 
into the United States," after "under tliem,"; and 
(B) in subsection (b)— 
(i) in paragraph (1)(C), by striking "use, or sale" 
and inserting "use, offer for sale, or sale"; 
108 STAT. 4990 
PUBLIC LAW 103-465—DEC. 8, 1994 
(ii) in paragraph (4)(A), by striking "sold or" and 
inserting 
sold, offered for sale, or" in the matter 
preceding clause (i); 
(iii) in paragraph (4)(A)(ii), bv striking **use, or 
sale" and inserting "use, offer for sale, or sale ; 
(iv) in paragraph (4)(C), by striking "have been 
sold" and inserting Tiave been offered for sale or sold"; 
and 
(v) in paragraph (4)(C), by striking "United States 
before" and inserting *iJnited States, or imported by 
the person into the United States, before". 
(6) Section 292(a) of title 35, United States Code, is 
amended— 
(A) by striking '*used, or sold by him" and inserting 
"used, offered for sale, or sold by such person within the 
United States, or imported by the person into the United 
States"; and 
(B) by striking "made or sold" and inserting "made, 
offered for sale, sold, or imported into the United States". 
(7) Section 295 of title 35, United States Code, is amended 
by striking "sale, or use" and inserting "sale, offer for sale, 
or use". 
(8) Section 307(b) of title 35, United States Code, is 
amended bv striking "used anything" and inserting "used within 
the United States, or imported into the Unitea States, any-
thing". 
35 u s e 154 note. 
SEC. 534. EFFECTIVE DATES AND APPLICATION. 
(a) IN GENERAL.—Subject to subsection (b), the amendments 
made by this subtitle take effect on the date that is one year 
after the date on which the WTO Agreement enters into force 
with respect to the United States. 
(b) PATENT APPUCATIONS.— 
(1) IN GENERAL.—Subject to paragraph (2), the amendments 
made by section 532 take effect on the date that is 6 months 
after the date of the enactment of this Act and shall apply 
to all patent applications filed in the United States on or 
after the effective date. 
(2) SECTION i54(a)(i).—Section 154(a)(1) of title 35, United 
States Code, as amended by section 532(a)(1) of this Act, shall 
take effect on the effective date described in subsection (a). 
(3) EARUEST FILING.—The term of a patent granted on 
an appHcation that is filed on or after the effective date 
described in subsection (a) and that contains a specific reference 
to an earlier appUcation filed under the provisions of section 
120, 121, or 365(c) of title 35, United States Code, shall be 
measured fi^m the fihng date of the earUest filed appUcation. 
TITLE VI—RELATED PROVISIONS 
Subtitle A—Expiring Provisions 
SEC. 601. GENERALIZED SYSTEM OF PREFERENCES. 
(a) EXTENSION OF DUTY-FREE TREATMENT UNDER SYSTEM.— 
Section 505(a) of the Trade Act of 1974 (19 U.S.C. 2465(a)) is 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4991 
19 u s e 2465 
note. 
amended by striking "September 30, 1994" and inserting "July 
31,1995". 
(b) RETROACTIVE APPUCATION FOR CERTAIN LIQUIDATIONS AND 
REUQUIDATIONS.— 
(1) IN GENERAL.—^Notwithstanding section 514 of the Tariff 
Act of 1930 or any other provision of law and subject to para-
graph (2), liie entiy— 
(A) of any article to which duty-fi-ee treatment under 
title V of the Trade Act of 1974 would have appUed if 
the entiy had been made on September 30, 1994, and 
(B) mat was made after September 30,1994, and before 
such date of enactment, 
shall be Uquidated or rehquidated as free of duty, and the 
Secretary of the Treasmy shall refund any duty paid with 
respect to such entry. As used in this subsection, the term 
"entry" includes a withdrawal from warehouse for consumption. 
(2) REQUESTS.—Liquidation or reUquidation may be made 
under paragraph (1) with respect to an entry only if a request 
therefor is filed with the Customs Service, witnin 180 days 
after the date of the enactment of this Act, that contains 
sufficient information to enable the Customs Service— 
(A) to locate the entry; or 
(B) to reconstruct me entry if it cannot be located. 
SEC. 602. U.S. INSULAR POSSESSIONS. 
(a) EXTENSION OF VERIFICATION AND CERTIFICATE ISSUANCE 
PROVISIONS.—Additional U.S. Note 5(h)(i) to chapter 91 of the HTS 
is amended by striking "and before January 1, 1995," and inserting 
"and before January 1, 2007,". 
(b) EXTENSION OF CERTIFICATE NUMBER PIC-EV-89.—Notwith- 
Expiration date, 
standing any other provision of law, the production incentive certifi-
cate, number PIC--EV-89, issued jointly by the Secretary of 
Conmierce and the Secretary of the Interior, piu^uant to paragraph 
(hXiXB) of Additional U.S. Note 5 to chapter 91 of the HTS (formerly 
paragraph (h)(i)(II) of headnote 6 of schedule 7, part 2, subpart 
E of the Tariff Schedules of the United States), snail be deemed 
to have been reissued on the date of the enactment of this Act 
in the amount of the balance remaining on such certificate, £ind 
shall expire on the date that is 1 year after such date of enactment. 
Subtitle B—Certain Customs Provisions 
SEC. 611. REIMBURSEMENTS FROM CUSTOMS USER FEE ACCOUNT. 
(a) IN GENERAL.—Subclause (II) of section 13031(f)(3)(A)(i) of 
the ConsoUdated Omnibus Budget Reconciliation Act of 1985 (19 
U.S.C. 58c(f)(3)(A)(i)(n)) is amended to read as follows: 
"(II) paying premium pay under section 5(b) of the 
Act of FebruEiry 13, 1911, out the amount for which 
reimbursement may be made under this subclause may 
not, for any fiscal year, exceed the difference between the 
total cost of all the premium pay for such year calculated 
under section 5(b) and the cost of the nignt and hoUday 
premium pay that the Customs Service would have 
mcurred for me same inspectiomd work on the day before 
the effective date of section 13813 of the Omnibus Budget 
Reconcihation Act of 1993,". 
108 STAT. 4992 
PUBLIC LAW 103-465—DEC. 8, 1994 
19 use 58c note. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to customs inspectional services performed on or after 
January 1, 1994. 
SEC. 612. MERCHANDISE PROCESSING FEES. 
(a) IN GENERAL.—Section 13031 of the Consohdated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c) is amended— 
(1) in subsection (a)(9)— 
(A) in subparagraph (A), by striking "0.17" and insert-
ing "0.21", 
(B) in subparagraph (B)(i), by striking "(but not to 
a rate of more than 0.19 percent nor less than 0.15 percent) 
that would" and inserting "(but not to a rate of more 
than 0.21 percent nor less than 0.15 percent) and the 
amounts specified in subsection (b)(8)(A)(ij (but not to more 
than $485 nor less than $21) to rates and amounts which 
would", and 
(C) in subparagraph (B)(ii), by striking "section 613A 
of the Tariff Act of 1930" and inserting subsection (f)", 
(2) in subsection (a)(10)— 
(A) in subparagraph (C), by striking "entry or release." 
and inserting entry or release, , 
(B) in clause (ii), by striking "$5" and inserting "$6", 
and 
(C) in clause (iii), by striking "$8" and inserting "$9", 
and 
(3) in subsection (b)(8)(A)(i), by striking "$400 or be less 
than $21", and inserting "$485 or be less than $25, imless 
adjusted pursuant to subsection (a)(9)(B)". 
19 use 58c note. 
(b) EFFECTIVE DATE.—The amendments made by this section 
apply to articles entered, or withdrawn fi*om warehouse for 
consumption, on or sifter JanuEiry 1, 1995. 
Subtitle C—Conforming Amendments 
SEC. 621. CONFORMING AMENDMENTS. 
(a) TRADE LAWS.— 
(1) Section 1317(a)(1) of the Omnibus Trade and Competi-
tiveness Act of 1988 (19 U.S.C. 1677k(a)(l)) is amended— 
(A) by inserting "(A)" after "(1)"; 
(B) by striking "General Agreement on Tariffs and 
Trade" and inserting "GATT 1994^; and 
(C) by adding at the end the following: 
"(B) The term 'GATT 1994' has the meaning given that 
term in section 2(1)(B) of the Uruguay Roimd Agreements 
Act.". 
(2) Section 212(c)(4) of the Caribbean Basin Economic 
Recovery Act (19 U.S.C. 2702(c)(4)) is amended by striking 
"GeneraJ" and all that follows through "1979" and inserting 
"WTO Agreement and the multilateral trade agreements (as 
such terms are defined in paragraphs (9) and (4), respectively, 
of section 2 of the Uruguay Round Agreements Act)". 
(3) Section 203(d)(4) of the Andean Trade Preference Act 
(19 U.S.C. 3202(d)(4)) is amended by striking "General" and 
all that follows through "1979" and inserting "WTO Agreement 
and the multilateral trade agreements (as such terms are 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4993 
defined in paragraphs (9) and (4), respectively, of section 2 
of the Uruguay Round Agreements Act)". 
(4) Section 1106 of the Omnibus Trade and Competitiveness 
Act of 1988 (19 U.S.C. 2905) is amended— 
(A) in subsection (a), by striking "the GATT" and 
inserting "the GATT 1947, or to the WTO Agreement,"; 
(B) in subsections (b) and (c), by inserting after "the 
GATT' each place it appears 
"1947 or the 
WTO 
Agreement"; 
(C) by adding at the end the following new subsection: 
"(e) DEFINITIONS.—For purposes of this section: 
"(1) The term 'GATT 1947' has the meaning given that 
term in section 2(1)(A) of the Uruguay Round Agreements 
Act. 
"(2) The term WTO Agreement' means the Agreement 
Establishing the World Trade Organization entered into on 
April 15, 1994 and the multilateral trade agreements (as such 
term is defined in section 2(4) of the Uruguay Round Agree-
ments Act)."; and 
(D) by inserting after "GENERAL AGREEMENT ON TAR-
IFFS AND TRADE" in the heading "FOR THE WTO". 
(5) Section 1107(a)(3) of the Omnibus Trade and Competi-
tiveness Act of 1988 (19 U.S.C. 2906(3)) is amended by striking 
"the General Agreement on Tariffs and Trade" and inserting 
"the GATT 1947 (as defined in section 2(1)(A) of the Uruguay 
Round Agreements Acif. 
(6) Section 1378(2) of the Omnibus Trade and Competitive-
ness Act of 1988 (19 U.S.C. 3107(2)) is amended by striking 
"the General Agreement on Tariffs and Trade" and inserting 
"the WTO Agreement and the multilateral trade agreements 
(as such terms are defined in paragraphs (9) and (4), respec-
tively, of section 2 of the Uruguay Roimd Agreements Act)". 
(7) Section 1382 of the Omnibus Trade and Competitiveness 
Act of 1988 (19 U.S.C. 3111) is amended by striking "the 
General Agreement on Tariffs and Trade" and inserting "the 
WTO Agreement and the multilateral trade agreements (as 
such terms are defined in paragraphs (9) and (4), respectively, 
of section 2 of the Uruguay Roimd Agreements Act)". 
(8) Section 141(c)(1) of the Trade Act of 1974 (19 U.S.C. 
2171(c)(1)) is amended— 
(A) in subparagraph (C) by inserting "all negotiations 
on any matter considered under the auspices of tiie World 
Trade Organization," after "including"; and 
(B) in subparagraph (D) by inserting ", including any 
matter considered under the auspices of the World Trade 
Organization," iifter "functions". 
(9) Section 301(a)(2)(A) of the Trade Act of 1974 (19 U.S.C. 
2411(a)(2)(A)) is amended by striking "the Contracting Parties" 
and all that follows through "Parties," and inserting "the Dis-
pute Settlement Body (as defined in section 121(5) of the Uru-
guay Round Agreements Act) has adopted a report,". 
(b) EFFECTIVE DATE.—The amendments made by this section 
19 use I677k 
shall take effect on the date on which the WTO Agreement enters "°*®' 
into force with respect to the United States. 
108 STAT. 4994 
PUBLIC LAW 103-465—DEC. 8, 1994 
TITLE VII—REVENUE PROVISIONS 
SEC. 700. AMENDMENT OF 1986 CODE AND TABLE OF CONTENTS. 
(a) AMENDMENT OF 1986 CODE.—Except as otherwise expressly 
provided, whenever in this title an amendment or repeal is 
expressed in terms of an amendment to, or repesil of, a section 
or other provision, the reference shall be considered to be made 
to a section or other provision of the Internal Revenue Code of 
1986. 
(b) TABLE OF CONTENTS.— 
TITLE VII—REVENUE PROVISIONS 
Sec. 700. Amendment of 1986 Code and table of contents. 
Subtitle A—^Withholding Tax Provisions 
Sec. 701. Withholding on distributions of Indian casino profits to tribal members. 
Sec. 702. Voluntary withholding on certain Federal payments and on unemploy-
ment compensation. 
Subtitle B—Provisions Relating to Estimated Taxes and Payments and Deposits of 
Taxes 
Sec. 711. Treatment of subpart F and section 936 income of taxpayers using 
annualized method for estimated tax. 
Sec. 712. Time for payments and deposits of certain taxes. 
Sec. 713. Reduction in rate of interest paid on certain corporate overpayments. 
Subtitle C—^Earned Income Tax Credit 
Sec. 721. Extension of earned income tax credit to military personnel stationed out-
side the United States. 
Sec. 722. Certain nonresident aliens ineligible for earned income tax credit. 
Sec. 723. Income of prisoners disregardea in determining earned income tax credit. 
Subtitle D—Provisions Relating To Retirement Benefits 
Sec. 731. Treatment of excess pension assets used for retiree health benefits. 
Sec. 732. Rounding rules for cost-of-living adjustments. 
Sec. 733. Increase in inclusion of social security benefits paid to nonresidents. 
Subtitle E—Other Provisions 
Sec. 741. Partnership distributions of marketable securities. 
Sec. 742. Taxpayer identification numbers regvured at birth. 
Sec. 743. Extension of Internal Revenue Service user fees. 
Sec. 744. Modification of substantial understatement penalty for corporations par-
ticipating in tax shelters. 
Sec. 745. Modification of authority to set terms and conditions for savings bonds. 
Subtitle F—Pension Plan Funding and Premiums 
Sec. 750. Short title. 
PART I—PENSION PLAN FUNDING 
SUBPART A—AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986 
Sec. 751. Minimum funding requirements. 
Sec. 752. Limitation on changes in current liability assumptions. 
Sec. 753. Anticipation of bargained benefit increases. 
Sec. 754. Modification of quarterly contribution requirement. 
Sec. 755. Exceptions to excise tax on nondeductible contributions. 
SUBPART B—^AMENDMENTS TO THE EMPLOYEE RETIREMENT INC!OME SECURITY ACT OF 
1974 
Sec. 761. Minimum funding requirements. 
Sec. 762. Limitation on changes in current liability assumptions. 
Sec. 763. Anticipation of bargained benefit increases. 
Sec. 764. Modification of quarterly contribution requirement. 
SUBPART O—OTHER FUNDING PROVISIONS 
Sec. 766. Prohibition on benefit increases where plan sponsor is in bcmkruptcy. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4995 
Sec. 767. Single sum diatributiona. 
Sec. 768. Adjuatmenta to lien for miaaed minimum funding oontributiona. 
Sec. 769. Special fdnding rulea for certain plana. 
PART II—AMENDMENTS RE:LATED TO TITLE FV OF THE EMPLOYEE RETIREMENT 
INC!OME SECURITY ACT OF 1974 
Sec. 771. Reportable eventa. 
Sec. 772. Certain information required to be furniahed to PBGC 
Sec. 773. Enforcement of minimum fundin? requirementa. 
Sec. 774. Computation of additional PBGCpremium. 
Sec. 775. Diacioaure to participanta. 
Sec. 776. Miaaing participants. 
Sec. 777. Modification of maximum guarantee for diaability benefita. 
Sec. 778. Procedurea to facilitate diatribution of termination benefita. 
PART III—EFFECTIVE DATES 
Sec. 781. Effective dates. 
Subtitle A—Withholding Tax Provisions 
SEC. 701. WITHHOLDING ON DISTRIBUTIONS OF INDIAN CASINO 
PROFITS TO IHIBAL MEMBERS. 
(a) IN GENERAL.—Section 3402 (relating to income tax collected 
26 use 3402. 
at source) is amended by inserting after subsection (q) the following 
new subsection: 
"(r) EXTENSION OF WITHHOLDING TO CERTAIN TAXABLE PAY-
MENTS OF INDIAN CASINO PROFITS.— 
"(1) IN GENERAI..—Every person, including an Indian tribe, 
making a payment to a member of an Indian tribe from the 
net revenues of any class II or class III gaming activity con-
ducted or licensed by such tribe shall deduct and withhold 
from such payment a tax in an amount equsd to such payment's 
proportionate share of the annualized tax. 
"(2) EXCEPTION.—The tax imposed by paragraph (1) shall 
not apply to any payment to the extent that the payment, 
when annuaUzed, does not exceed an amount equal to the 
sum of— 
"(A) the ba£iic standard deduction (as defined in section 
63(c)) for an individual to whom section 63(c)(2)(C) applies, 
and 
"(B) the exemption amount (as defined in section 
151(d)). 
"(3) ANNUALIZED TAX.—For purposes of paragraph (1), the 
term 'annuaHzed tsix' means, with respect to any payment, 
the amount of tax which would be imposed by section 1(c) 
(determined without regard to any rate of tax in excess of 
31 percent) on an amount of taxable income equal to the excess 
of— 
"(A) the annuahzed amount of such payment, over 
"(B) the amoimt determined under paragraph (2). 
"(4) CLASSES OF GAMING ACTIVITIES, ETC.—For purposes 
of this subsection, terms used in paragraph (1) wnicn are 
defined in section 4 of the Indian Gaming Regulatory Act 
(25 U.S.C. 2701 et seq.), as in effect on the date of the enact-
ment of this subsection, shall have the respective meanings 
given such terms by such section. 
"(5) ANNUALIZATION.—^Payments shall be placed on an 
annualized basis under regulations prescribed by the Secretary. 
"(6) ALTERNATE WITHHOLDING PROCEDURES.—At the elec-
tion of an Indian tnbe, the tax imposed by this subsection 
108 STAT. 4996 
PUBLIC LAW 103-465—DEC. 8, 1994 
on £iny payment made by such tribe shall be determined in 
accordance with such tables or computational procedures as 
may be specified in regulations prescribed bv the Secretary 
(in lieu of m accordance with paragraphs (2) and (3)). 
"(7) COORDINATION WITH OTHER SECTIONS.—For purposes 
of this chapter and so much of subtitle F as relates to this 
chapter, payments to any person which are subject to withhold-
ing under this subsection shall be treated as if they were 
wages paid by an employer to an employee." 
26 use 3402 
(b) EFFECTIVE DATE.^The amendment made by this section 
^°^' 
shall apply to payments made after December 31, 1994. 
SEC. 702. VOLUNTARY WITHHOLDING ON CERTAIN FEDERAL PAY-
MENTS AND ON UNEMPLOYMENT COMPENSATION. 
26 use 3402. 
(a) IN GENERAL.—Subsection (p) of section 3402 (relating to 
voluntary withholding agreements) is amended to read as follows: 
"(p) VOLUNTARY WITHHOLDING AGREEMENTS.— 
"(1) CERTAIN FEDERAL PAYMENTS.— 
"(A) IN GENERAL.—If, at the time a specified Federal 
payment is made to any person, a request by such person 
is in effect that such payment be subject to withholding 
under this chapter, then for piuT)oses of this chapter and 
so much of subtitle F as relates to this chapter, such 
payment shall be treated as if it were a payment of wages 
by an employer to an employee. 
"(B) AMOUNT WITHHELD.—The amount to be deducted 
and withheld under this chapter fi-om any payment to 
which any request under subparagraph (A) applies shall 
be an amount equal to the percentage of such payment 
specified in such request. Such a request shall apply to 
any payment only if the percentage specified is 7, 15, 
28, or 31 percent or such omer percentage as is permitted 
under regulations prescribed by the Secretary. 
"(C) SPECIFIED FEDERAL PAYMENTS.—For purposes of 
this paragraph, the term 'specified Federal payment' 
means— 
"(i) any payment of a social security benefit (as 
defined in section 86(d)), 
"(ii) any payment referred to in the second sen-
tence of section 451(d) which is treated as insurance 
proceeds, 
"(iii) any amount which is includible in gross 
income under section 77(a), and 
"(iv) any other payment made piu^uant to Federal 
law which is specined by the Secretary for pmposes 
of this paragraph. 
"(D) REQUESTS FOR WITHHOLDING.—Rules similar to 
the rules that apply to annuities under subsection (o)(4) 
shall apply to requests under this paragraph and paragraph 
(2). 
"(2) VOLUNTARY WITHHOLDING ON UNEMPLOYMENT BENE-
FITS.—If, at the time a payment of imemployment compensation 
(as defined in section 85(b)) is made to any person, a request 
by such person is in effect that such payment be subject to 
withholding under this chapter, then for piuposes of this chap-
ter and so much of subtitle F as relates to this chapter, such 
payment shall be treated as if it were a payment of wages 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4997 
by an employer to an employee. The amount to be deducted 
EOid withheld under this chapter from any payment to which 
any request under lids paragraph apphes shaU be an amount 
equal to 15 percent of such payment 
"(3) AUTHORITY FOR OTHER VOLUNTARY WITHHOLDING.—The 
Secretary 
is authorized 
by regulations 
to provide for 
withholding— 
"(A) from remuneration for services performed by an 
employee for the employee's employer which (witiiout 
regard to this pjiragraph) does not constitute wages, and 
"(B) fix)m any other type of pajonent with respect to 
which the Secretary finds tiiat withholding would be appro-
priate under the provisions of this chapter, 
if the employer and employee, or the person making and the 
person receiving such other type of payment, agree to such 
withholding. Such agreement shall be in such form and manner 
as the Secretary may by regulations prescribe. For purposes 
of this chapter (and so much of subtitle F as relates to this 
chapter), remuneration or other payments with respect to which 
such agreement is made shall be treated as if they were wages 
paid by an employer to an employee to the extent that such 
remuneration is paid or other payments are made during the 
period for which the agreement is in effect." 
(b) STATE LAW MUST PERMIT VOLUNTARY WITHHOLDING OF 
FEDERAL INCOME TAX FROM UNEMPLOYMENT COMPENSATION.—Sec-
tion 3304(a) is amended by striking "and" at the end of paragraph 
(17), by redesignating paragraph (18) as paragraph (19), and by 
inserting after paragraph (17) the following new paragraph: 
"(18) Federal individual income tax from unemployment 
compensation is to be deducted and withheld if an individual 
receiving such compensation voluntarily requests such deduc-
tion and withholding; and". 
(c) WITHHOLDING FROM UNEMPLOYMENT COMPENSATION OF 
FEDERAL, STATE, AND LOCAL INCOME TAXES PERMITTED.— 
(1) Subparagraph (C) of section 3304(a)(4) is amended by 
inserting aher "health insurance" the following: ", or the 
withholding of Federal, State, or local individual income tax,". 
(2) Subsection (iD of section 3306 is amended by redesignat-
ing paragraphs (3) smd (4) as paragraphs (4) and (5), respec-
tively, and by inserting sifter .paragraph (2) the following new 
paragraph: 
"(3) nothing in this subsection shall be construed to prohibit 
deducting any amount fix)m unemployment compensation other-
wise payable to an individual and using the amount so deducted 
to pay for health insurance, or the withholding of Federal, 
State, or local indi\idual income tax, if the individual elected 
to have such deduction made and such deduction was made 
imder a program approved by the Secretary of Labor;". 
(3) Paragraph (5) of section 303(a) of the Social Security 
Act is amended by inserting after "health insurance" the follow-
ing: ", or the withholding of Federsil, State, or local individual 
income tax,". 
(d) EFFECTIVE DATFL—The amendments made by this section 
shall apply to payments made after December 31, 1996. 
Regulations. 
26 use 3304. 
42 u s e 503. 
26 u s e 3304 
note. 
108 STAT. 4998 
PUBLIC LAW 103-465—DEC. 8, 1994 
Subtitle B—Provisions Relating to Esti-
mated Taxes and Payments and Deposits 
of Taxes 
SEC. 711. TREATMENT OF SUBPART F AND SECTION 936 INCOME OF 
TAXPAYERS USING ANNUALIZED METHOD FOR ESTIMATED 
TAX. 
26 use 6655. 
(a) CORPORATIONS.—Section 6655(e) (relating to lower required 
installment where annualized income installment is less) is amend-
ed by adding at the end the following new paragraph: 
"(4) TREATMENT OF SUBPART F AND SECTION 936 INCOME.— 
"(A) IN GENERAL.—^Any amounts required to be 
included in gross income under section 936(h) or 951(a) 
(and credits properly allocable thereto) shall be taken into 
account in computing any annualized income installment 
under paragrapn (2) in a manner similar to the manner 
under which partnership income inclusions (and credits 
properly allocable thereto) are taken into account 
"(B) PRIOR YEAR SAFE HARBOR.— 
"(i) IN GENERAL.—If a taxpayer elects to have this 
subparagraph apply for any taxable year— 
"(I) subparagraph (A) shall not apply, and 
"(II) for purposes of computing any annuaUzed 
income installnient for such taxable year, the tax-
payer shall be treated as having received ratably 
during such taxable year items of income and 
credit described in subparagraph (A) in an amount 
equal to 115 percent of the amount of such items 
shown on the return of the taxpayer for the preced-
ing taxable year (the second preceding taxable year 
in the case of the first and second required install-
ments for such taxable year), 
"(ii) 
SPECIAL 
RULE 
FOR 
NONCONTROLLING 
SHAREHOLDER.— 
"(I) IN GENERAL.—If a taxpayer making the 
election under clause (i) is a noncontroUing share-
holder of a corporation, clause (i)(II) shall be 
appHed with respect to items of such corporation 
by substituting '100 percent* for *115 percent*. 
"(II) 
NONCONTROLLING 
SHAREHOLDER.—For 
purposes of subclause (I), the term *noncontroUing 
shareholder* means, vdih. respect to any corpora-
tion, a shareholder which (as of the beginning 
of the taxable year for which the installment is 
being made) does not own (within the mesining 
of section 958(a)), and is not treated as owning 
(within the meaning of section 958(b)), more thEin 
50 percent (by vote or value) of the stock in the 
corporation." 
(b) INDIVIDUALS.—Section 6654(d)(2) (relating to lower required 
installment where annualized income installment is less) is 
amended by adding at the end the following new subparagraph: 
"(D) 
TREATMENT OF SUBPART F AND SECTION 936 
INCOME.— 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 4999 
"(i) IN GENERAL.—^Any amounts required to be 
included in gross income under section 936(h) or 951(a) 
(and credits properly allocable thereto) shall be taken 
into account in computing any annualized income 
installment under subparagraph (B) in a manner simi-
lar to the manner under which partnership income 
inclusions (and credits properly allocable thereto) are 
taken into account. 
"(ii) PRIOR YEAR SAFE HARBOR.—If a taxpayer elects 
to have this clause apply to any taxable year— 
"(I) clause (i) shall not apply, and 
"(II) for purposes of computing any annualized 
income installment for such taxable year, the tax-
payer shall be treated as having received ratably 
dining such taxable year items of income and 
credit described in clause (i) in an amount equal 
to the amount of such items shown on the return 
of the taxpayer for the preceding taxable year (the 
second preceding taxable year in the case of the 
first and second required instsdlments for such 
taxable year)." 
(c) EFFECTIVE DATE.—^The amendments made by this section 
26 use 6654 
shall apply for purposes of determining underpayments of estimated 
^°^-
tax for taxable years beginning after December 31,1994. 
SEC. 712. TIME FOR PAYMENTS AND DEPOSITS OF CERTAIN TAXES. 
(a) DEPOSITS REQUIRED FOR SEMIMONTHLY PERIODS.—Sub-
section (f) of section 6302 (relating to collection authority) is 
26 use 6302. 
amended to read as follows: 
"(f) TIME FOR DEPOSIT OF CERTAIN EXCISE TAXES.— 
"(1) GENERAL RULE.—Except as otherwise provided in this 
subsection and subsection (e), if any person is required under 
regulations to make deposits of taxes under subtitle D with 
respect to semimonthly periods, such person shall make 
deposits of such taxes for the period beginning on September 
16 and ending on September 26 not later than September 
29. In the case of taxes imposed by sections 4261 and 4271, 
this paragraph shall not apply to periods before January 1, 
1997. 
"(2) TAXES ON OZONE DEPLETING CHEMICALS.—If any person 
is required under regulations to make deposits of taxes under 
subchapter D of chapter 38 with respect to semimonthly peri-
ods, in Heu of paragraph (1), such person shall make deposits 
of such taxes for— 
"(A) the second semimonthly period in August, and 
"(B) the period beginning on September 1 and ending 
onSentember 11, 
not later tnan September 29. 
"(3) TAXPAYERS NOT REQUIRED TO USE ELECTRONIC FUNDS 
TRANSFER.—In the case of deposits not required to be made 
by electronic fiinds transfer, paragraphs (1) and (2) shall be 
appUed by substituting 'September 25' for 'September 26', 
'September Icy for 'September 11', and 'September 28' for 
'September 29'. 
"(4) S
P
E
C
L
f
V
L RtrUB WHERE DUE DATE ON SATURDAY OR SUN-
DAY.—^If, but for this paragraph, the due date under paragraph 
108 STAT. 5000 
PUBLIC LAW 103-465—DEC. 8, 1994 
(1), (2), or (3) would fall on a Saturday or Simday, such due 
date sliEdl be deemed to be— 
"(A) in the case of Saturday, the preceding day, and 
"(B) in the case of Sunday, the following day. 
(b) TAXES ON DISTILLED SPIRITS, WINES, AND BEER.— 
26 use 5061. 
(1) Subsection (d) of section 5061 is amended by redesignat-
ing paragraph (4) £is paragraph (5) and by inserting after 
paragraph (3) the following new paragraph: 
(4) SPECIAL RULE FOR TAX DUE IN SEPTEMBER.— 
"(A) IN GENERAL.—Notwithstanding the preceding 
provisions of this subsection, the taxes on distilled spirits, 
wines, and beer for the period beginning on September 
16 and ending on September 26 snail be paid not later 
than September 29. 
"(B) SAFE HARBOR.—^The requirement of subparagraph 
(A) shall be treated as met if the amount paid not later 
th£in September 29 is not less than Wi6 of the taxes on 
distilled spirits, wines, and beer for the period beginning 
on September 1 and ending on September 15. 
"(C) TAXPAYERS NOT REQUIRED TO USE ELECTRONIC 
FUNDS TRANSFER.—In the case of payments not required 
to be made by electronic funds transfer, subparagraphs 
(A) and (B) snaU be apphed by substituting September 
25' for 'September 26', ^September 28' for 'September 29', 
and'%' for '^Vis'." 
(2) Section 5061(d)(5), as redesignated by paragraph (1), 
is amended— 
(A) by inserting "(or the immediately following day 
where the due date described in paragraph (4) falls on 
a Sunday)" before the period at the end, and 
(B) by striking "I4TH DAY" in the heading and inserting 
"DUE DATE". 
(c) TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES.— 
(1) Paragraph (2) of section 5703(b) is amended by 
redesignating subparagraph (D) as subparagraph (E) and by 
inserting 
after 
subpciragraph 
(C) 
the 
following 
new 
subparagraph: 
"(D) SPECIAL RULE FOR TAX DUE IN SEPTEMBER.— 
"(i) IN GENERAL.—^Notwithstanding the preceding 
provisions of this paragraph, the taxes on tobacco prod-
ucts and cigarette papers and tubes for the period 
beginning on September 16 and ending on September 
26 shall be paid not later than September 29. 
"(ii) SAFE HARBOR.—^The requirement of clause (i) 
shall be treated as met if the amount paid not later 
than September 29 is not less than WIB of the taxes 
on tobacco products and cigarette papers and tubes 
for the period beginning on September 1 and ending 
on September 15. 
"(iii) TAXPAYERS NOT REQUIRED TO USE ELECTRONIC 
FUNDS TRANSFER.—In the case of payments not 
required to be made by electronic funds transfer, 
clauses (i) and (ii) shall be appUed by substituting 
'September 25' for 'September 26', 'September 28' for 
'September 29', and '%^for '^Vis'." 
(2) Section 5703(b)(2)(E), as redesignated by paragraph 
(1), is amended— 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5001 
(A) by inserting "(or the immediately following day 
where the due date described in subparagraph (D) falls 
on a Simday)" before the period at the end, and 
(B) by striking "i4TH DAY" in the heading and inserting 
"DUE DATE". 
(d) 
COMMUNICATION SERVICES AND AIRLINE TICKETO.—Sub-
section (e) of section 6302 is amended to read as follows: 
26 USC 6302. 
"(e) TIME FOR DEPOSIT OF TAXES ON COMMUNICATIONS SERVICES 
AND AIRUNE TICKETS.— 
"(1) IN GENERAL.—Except as provided in paragraph (2), 
if, under regulations; prescribed by the Secretary, a person 
is required to make deposits of any tax imposed by section 
4251 or subsection (a) or (b) of section 4261 with respect to 
amounts considered collected by such person during any semi-
monthly period, such deposit shaU be made not later than 
the 3rd day (not including Saturdays, Sundays, or legal holi-
days) after the close of the 1st week of the 2nd semimonthly 
period following the period to which such amounts relate. 
"(2) SPECIAL RULE FOR TAX DUE IN SEPTEMBER.— 
"(A) AMOUNTS CONSIDERED COLLECTED.—In the case 
of a person required to make deposits of the tax imposed 
b y -
"(i) section 4251, or 
"(ii) effective on January 1, 1997, section 4261 
or 4271, 
with respect to amounts considered collected by such person 
during any semimonthly period, the amount of such tax 
included in bills rendered or tickets sold during the period 
beginning on September 1 and ending on September 11 
shall be deposited not later than September 29. 
"(B) SPECIAL RULE WHERE SEPTEMBER 29 is ON SATUR-
DAY OR SUNDAY.—If September 29 falls on a Saturday 
or Simday, the due date under subparagraph (A) shall 
be— 
"(i) in the case of Saturday, the preceding day, 
and 
"(ii) in the case of Simday, the following day. 
"(C) 
TAXPAYERS NOT REQUIRED TO USE ELECTRONIC 
FUNDS TRANSFER.—In the case of deposits not required 
to be made by electronic funds transfer, subparagraphs 
(A) and (B) shall be appUed by substituting 'September 
10' for 'September 11' and 'September 28' for 'September 
29'." 
(e) EFFECTIVE DATE.—^The amendments made by this section 26 use 5061 
shall take effect on January 1, 1995. 
SEC. 713. REDUCTION IN IIATE OF INTEREST PAID ON CERTAIN COR-
PORATE OVERPAYMENTS. 
(a) IN GENERAL.—Piiragraph (1) of section 6621(a) (defining 
overpayment rate) is amended by adding at the end the following 
new flush sentence: 
"To the extent that an overpayment of tax by a corporation 
for any taxable period (as defined in subsection (c)(3)) exceeds 
$10,000, subparagraph (B) shall be appHed by substituting 
'0.5 percentage pointf for '2 percentage points'." 
note. 
108 STAT. 5002 
PUBLIC LAW 103-465—DEC. 8, 1994 
26 use 6621 
(b) EFFECTIVE DATE.—^The amendment made by this section 
" 
shall apply for purposes of determining interest for periods after 
December 31, 1994. 
Subtitle C—Earned Income Tax Credit 
SEC. 721. EXTENSION OF EARNED DfCOME TAX CREDIT TO MILITARY 
PERSONNEL STATIONED OUTSIDE THE UNITED STATES. 
26 use 32. 
(a) IN GENERAL.—Subsection (c) of section 32 (relating to earned 
income credit) is amended by adding at the end the following 
new paragraph: 
*\4) TREATMENT OF MILITARY PERSONNEL STATIONED OUT-
SIDE THE UNITED STATES.—For Durposes of paragraphs 
(l)(A)(ii)(I) and (3)(E), the principEd place of abode of a member 
of the Armed Forces of the United States shall be treated 
£is in the United States during any period during which such 
member is stationed outside the United States while serving 
on extended active duty (as defined in section 1034(h)(3)) with 
the Armed Forces of the United States." 
(b) REPORTING OF MILITARY EARNED INCOME.—Subsection (a) 
of section 6051 (relating to receipts for employees) is amended 
by striking "and" at the end of paragraph (8), by striking the 
period at the end of paragraph (9) and by inserting ", and", Eind 
by inserting after paragraph (9) the following new paragraph: 
"(10) in the CEise of an employee who is a member of 
the Armed Forces of the United States, such employee's earned 
income as determined for purposes of section 32 (relating to 
earned income credit)." 
(c) ADVANCE PAYMENT OF EARNED INCOME CREDIT BASED ON 
MILITARY EARNED INCOME.—Paragraph (1) of section 3507(c) (defin-
ing earned income advance amount) is amended by adding at the 
end the following new sentence: 
"In the case of an employee who is a member of the Armed 
Forces of the United States, the earned income advance amount 
shall be determined by taking into accoimt such employee's 
earned income as determined for piuposes of section 32." 
(d) EFFECTIVE DATES.— 
26 use 32 note. 
(1) SUBSECTION (a).—The amendment made by subsection 
(a) shall apply to taxable years beginning after December 31, 
1994. 
26 use 3507 
(2) SUBSECTIONS (b) AND (C).—The amendments made by 
^°*«- 
subsections (b) and (c) shall apply to remuneration paid after 
December 31, 1994. 
SEC. 722. CERTAIN NONRESIDENT ALIENS INELIGIBLE FOR EARNED 
INCOME TAX CREDIT. 
(a) IN GENERAL.—Paragraph (1) of section 32(c) (defining 
eligible individual) is amended by adding at the end the following 
new subparagraph: 
^(E) 
LIMITATION ON ELIGIBILITY OF NONRESIDENT 
ALIENS.—^The term 'ehgible individual' shall not include 
any individual who is a nonresident ahen individual for 
any portion of the taxable year imless such individual 
is treated for such taxable year as a resident of the United 
States for purposes of this chapter by reason of an election 
under subsection (g) or (h) of section 6013." 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5003 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 26 use 32 note, 
shall apply to taxable yesirs beginning after December 31, 1994. 
SEC. 723. INCOME OF PRISONERS DISREGARDED IN DETERMINING 
EARNED INCOME TAX CREDIT. 
(a) IN GENERAL.—Subparagraph (B) of section 32(c)(2) (defining 
26 use 32. 
earned income) is amended by striking "and" at the end of clause 
(ii), by striking the period at the end of clause (iii) and inserting 
", and", and by adding at the end the following new clause: 
"(iv) no amount received for services provided by 
an individual while the individual is an inmate at 
a penal institution shall be taken into accoimt." 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
26 use 32 note, 
shall apply to taxable years beginning after December 31, 1993. 
Subtitle D—Provisions Relating To 
Retirement Benefits 
SEC. 731. TREATMENT OF EXCESS MINSION ASSETS USED FOR 
RETIREE HEALTH BENEFITS. 
(a) 5-YEAR EXTENSION.—Paragraph (5) of section 420(b) (defin-
ing qualified transfer) is amended by striking "1995" and inserting 
"2000". 
(b) MINIMUM BENEFIT REQUIREMENTS.—Paragraph (3) of section 
420(c) (relating to requirements of plans transferring assets) is 
amended to read as follows: 
"(3) MAINTENANCE OF BENEFIT REQUIREMENTS.— 
"(A) IN GENERAL.—The requirements of this paragraph 
are met if each group health plan or arrangement under 
which apphcable nealth benefits are provided provides that 
the apphcable health benefits provided by the employer 
during each taxable year during the benefit maintenance 
E
eriod are subsfeintially the same as the apphcable health 
enefits provided by the employer during the taxable year 
immediately preceding the taxable year of the qualified 
transfer. 
"(B) ELECTION TO APPLY SEPARATELY.—^An employer 
may elect to have this paragraph appUed separately with 
respect to individuals ehgible for benefits under titie XVIII 
of me Social Security Act at any time during the taxable 
year and with respect to individuals not so ehgible. 
"(C) BENEFIT MAINTENANCE PERIOD.—For purposes of 
this paragraph, the term ^benefit maintenance period' 
means the period of 5 taxable years beginning with the 
taxable year in which the qualified transfer occ\u*s. If a 
taxable year is in 2 or more benefit maintenance periods, 
this paragraph shall be apphed by taking into account 
the highest level of benefits required to be provided under 
subparagraph (A) for such taxable year." 
(c) CONFORMING AMENDMENTS.— 
(1) Clause (ui) of section 42(Xb)(l)(C) is amended by striking 
"cost" and inserting "benefits". 
(2) Subparagraph (B) of section 420(e)(1) is amended to 
read as follows: 
"(B) 
REDUCTIONS 
FOR AMOUNTS 
PREVIOUSLY SET 
ASIDE.—The amount determined under subparagraph (A) 
108 STAT. 5004 
PUBLIC LAW 103-465—DEC. 8, 1994 
shall be reduced by the amount which bears the same 
ratio to such amount as— 
"(i) the value (as of the close of the plan year 
preceding the year of the qualified transfer) of the 
assets in all health benefits accounts or welfare benefit 
funds (as defined in section 419(e)(1)) set aside to 
E
ay for the qualified current retiree health habihty, 
ears to 
"(ii) the present vsilue of the qualified current 
retiree health UabUities for all plan years (determined 
without regard to this subparagraph)." 
26 use 420. 
(3) Subparagraph (D) of section 420(e)(1) is amended by 
striking "or in calculating appUcable employer cost under sub-
section (c)(3)(B)" and inserting "and shall not be subject to 
the minimum benefit requirements of subsection (c)(3)". 
(4)(A) Section 101(e)(3) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1021(e)(3)) is amended by 
striking "1991" and inserting "1995". 
(B) Section 403(c)(1) of such Act (29 U.S.C. 1103(c)(1)) 
is amended by striking "1991" and inserting "1995". 
(C) Paragraph (13) of section 408(b) of such Act (29 U.S.C. 
1108(b)(13)) is amended— 
(i) by striking "1996" and inserting "2001", and 
(ii) by striking "1991" and inserting "1995". 
26 use 420 note. 
(d) EFFECTIVE DATES.— 
(1) EXTENSION.—^The amendments made by subsections (a) 
and (c)(3) shall apply to taxable years beginning after December 
31,1995. 
(2) BENEFITS.—^The amendments made by subsections (b) 
and (c)(1) and (2) shall apply to qualified transfers occurring 
after the date of the enactment of this Act. 
SEC. 732. ROUM)ING RULES FOR COST-OF-LIVING ADJUSTMENTS. 
(a) CosT-OF-LiviNG ADJUSTMENT FOR COMPENSATION LIMIT.— 
Section 401(a)(17)(B) is amended to read as follows: 
"(B) COST-OF-LIVING ADJUSTMENT.—The Secretary shall 
adjust annually the $150,000 amount in subparagraph (A) 
for increases in the cost-of-Uving at the same time and 
in the same manner as adjustments under section 415(d); 
except that the base period shall be the calendar quarter 
beginning October 1, 1993, and any increase which is not 
a multiple of $10,000 shall be rounded to the next lowest 
multiple of $10,000." 
(b) CosT-OF-LiviNG ADJUSTMENT FOR MAXIMUM DEFINED BENE-
FIT AMOUNT AND MAXIMUM ANNUAL ADDITION.— 
(1) IN GENERAL.—Section 415(d) is amended to read as 
follows: 
"(d) CosT-oF-LiviNG ADJUSTMENTS.— 
"(1) IN GENERAL.—The Secretary shall adjust annually— 
"(A) the $90,000 amoimt in subsection (b)(1)(A), 
"(B) in the case of a participant who separated fix)m 
service, the amount taken into accoimt under subsection 
(b)(1)(B), and 
Regulations. 
«(C) the $30,000 amoimt in subsection (c)( 1)(A), 
for increases in the cost-of-Hving in accordance with regulations 
prescribed by the Secretary. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5005 
"(2) METHOD.—The regulations prescribed under paragraph 
(1) shall provide for— 
"(A) an at^ustment with respect to any calendar year 
based on the increase in the applicable index for the cal-
endar quarter ending September 30 of the preceding cal-
endar year over such index for the base period, and 
"(B) adjustment procedures which are similar to the 
procedures used to adjust benefit amounts under section 
215(i)(2)(A) of the Social Security Act. 
"(3) BASE PERIOD.—For purposes of paragraph (2)— 
"(A) $90,000 AMOUNT.—The base period taken into 
account for purposes of paragraph (1)(A) is the calendar 
quarter beginning October 1, 1986. 
"(B) SEPARATIONS AFTER DECEMBER 3I, 1994.—The base 
period taken into accoimt for purposes of paragraph (1)(B) 
with respect to Individuals separating fix)m service with 
the employer after December 31, 1994, is the calendar 
quarter beginning July 1 of the calendar year preceding 
the calendar year in which such separation occurs. 
"(C) SEPARATIONS BEFORE JANUARY 1, 1995.—The base 
period taken into accoimt for purposes of paragraph (1)(B) 
with respect to individuals separating from service with 
the employer before January 1, 1995, is the calendar quar-
ter beginning October 1 of the calendar year preceding 
the calendar year' in which such sepsu'ation occurs. 
"(D) $30,000 AMOUNT.—The base period taken into 
account for purposes of paragraph (1)(C) is the calendar 
quarter beginning October 1, 1993. 
"(4) ROUNDING.—Any increase under subparagraph (A) or 
(C) of paragraph (1) wMch is not a midtiple of $5,000 shall 
be rounded to the next lowest multiple of $5,000." 
(2) 
CONFORMING 
AMENDMENT.—Section 415(c)(1)(A) 
is 26 use 415. 
amended by striking "(or, if greater, V
4 of the doUfu* Umitation 
in effect under subsection (b)(1)(A))". 
(c) CosT-OF-LiviNG ADJUSTMENT FOR MAXIMUM SALARY DEFER-
RAL.—Section 402(g)(5) is amended by inserting before the period 
"; except that any increase under tiiis paragraph which is not 
a mtdtiple of $500 shall be rounded to the next lowest multiple 
of $500". 
(d) CosT-oF-LiviNG ADJUSTMENT FOR EUGIBIUTY FOR SIM-
PUFIED EMPLOYEE PENSIONS.—Section 408(k)(8) is amended by 
inserting before the period "; except that any increase in the $300 
amount which is not a multiple of $50 shall be rounded to the 
next lowest multiple of $50". 
(e) EFFECTIVE DATES.— 
26 use 401 note. 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to years begin-
ning after December 31,1994. 
(2) ROUNDING NOT TX) RESULT IN DECREASES.—The amend-
ments made by this section providing for the rounding of 
indexed amoimts shall not apply to any year to the extent 
the rounding would require the indexed amount to be reduced 
below the amount in effect for years beginning in 1994. 
108 STAT. 5006 
PUBLIC LAW 103-465—DEC. 8, 1994 
SEC. 733. INCREASE IN INCLUSION OF SOCIAL SECURITY BENEFITS 
PAID TO NONRESIDENTS. 
26 use 871. 
(a) IN GENERAL.—Subparagraph (A) of section 871(a)(3) (relat-
ing to taxation of Socisil Security oenefits) is amended by striking 
"one-half' and inserting "85 percent. 
26 use 871 note. 
(fc) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall apply to benefits paid after December 31, 1994, in taxable 
years ending after such date. 
Subtitle E—Other Provisions 
SEC. 741. PARTNERSHIP DISTRIBUTIONS OF MARKETABLE SECURI-
TIES. 
(a) IN GENERAL.—Section 731 (relating to extent of recognition 
of gain or loss on distribution) is amended by redesignating sub-
section (c) as subsection (d) and by inserting after subsection (b) 
the following new subsection: 
"(c) TREATMENT OF MARKETABLE SECURITIES.— 
"(1) IN GENERAL.—For purposes of subsection (a)(1) and 
section 737— 
"(A) the term ^monej^ includes marketable securities, 
and 
"(B) such securities shall be taken into account at 
their fair market value as of the date of the distribution. 
"(2) MARKETABLE SECURITIES.—For purposes of this sub-
section: 
"(A) IN GENERAL.—The term 'marketable securities' 
means financial instruments and foreign currencies which 
are, as of the date of the distribution, actively traded 
(within the meaning of section 1092(d)(1)). 
"(B) OTHER PROPERTY.—Such term includes— 
"(i) any interest in— 
"(I) a common trust fiind, or 
"(II) a regulated investment company which 
is offering for sale or has outstanding £iny redeem-
able security (as defined in section 2(a)(32) of the 
Investment Company Act of 1940) of which it is 
the issuer, 
"(ii) any financial instrument which, pursuant to 
its terms or any other arrangement, is readily convert-
ible into, or exchangeable for, money or marketable 
securities, 
,, 
"(iii) any financial instrument the value of which 
is determined substantially by reference to marketable 
securities, 
"(iv) except to the extent provided in regulations 
prescribed by the Secretary, any interest in a precious 
metal which, as of the date of the distribution, is 
actively traded 
(within the meaning 
of section 
1092(dXl)) unless such metal was produced, used, or 
held in the active conduct of a trade or business by 
the partnership, 
"(v) except as otherwise provided in regulations 
prescribed by the Secretary, interests in any entity 
if substantially all of the assets of such entity consist 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5007 
(directly or indirectly) of marketable securities, money, 
or both, and 
*'(vi) to the extent provided in regulations pre-
scribed by the Secretary, any interest in an entity 
not described in clause (v) but only to the extent of 
the value of such interest which is attributable to 
marketable securities, money, or both. 
"(C) 
FINANCIAL INSTRUMENT.—The term ^financial 
instrumenf includes stocks and other equity interests, evi-
dences of indebtedness, options, forward or futures con-
tracts, notional piincipal contracts, and derivatives. 
"(3) EXCEPTIONS.— 
"(A) IN GENERAL.—Paragraph (1) shall not apply to 
the distribution from a partnersmp of a marketable security 
to a partner if— 
"(i) the security was contributed to the partnership 
by such partner, except to the extent that the value 
of the distributed security is attributable to marketable 
seciuities or money contributed (directly or indirectly) 
to the entity to which the distributed security relates, 
"(ii) to the extent provided in regulations pre-
scribed by the Secretary, the property was not a 
marketable security when acquired by such partner-
ship, or 
"(iii) such partnership is an investment partner-
ship and such partner is an eUgible partner thereof 
"(B) LIMITATION ON GAIN RECOGNIZED.—In the case 
of a distribution of marketable securities to a partner, 
the amoimt taken into account under paragraph (1) shall 
be reduced (but not below zero) by the excess (if any) 
of— 
"(i) such partner's distributive share of the net 
gain which would be recognized if all of the marketable 
securities of the same class and issuer as the distrib-
uted securities held by tJie partnership were sold 
(immediately before the transaction to wnich the dis-
tribution relates) by the partnership for fair market 
value, over 
"(ii) such partner's distributive share of the net 
gain which is attributable to the marketable securities 
of the same class and issuer as the distributed securi-
ties held by the partnershij) immediately after the 
transaction, determined by using the same fair market 
value as used imder clause (i). 
Under regulations prescribed by the Secretary, all market- Regulations, 
able securities held by the partnership may be treated 
as marketable securities of the same class and issuer as 
the distributed securities. 
"(C) DEFINITIONS RELATING TO INVESTMENT PARTNER-
SHIPS.—For purposes of subparagraph (A)(iii): 
"(i) INVESTMENT PARTNERSHIP.—The term 'invest-
ment pgutnership' means any partnership which has 
never been engaged in a trade or business and substan-
tially all of tiie assets (by value) of which have always 
consisted o
f
—
-
"(I) money, 
"(II) stock in a corporation, 
108 STAT. 5008 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(III) notes, bonds, debentures, or other evi-
dences of indebtedness, 
"(IV) interest rate, currency, or equity notional 
principal contracts, 
"(V) foreign currencies, 
"(VI) interests in or derivative 
financial 
instruments (including options, forward or futures 
contracts, short positions, and similar 
financial 
instruments) in £uiy asset described in any other 
subclause of this clause or in any conmiodity 
traded on or subject to the rules of a board of 
trade or conmiodity exchange, 
"(VII) other assets specified in regulations pre-
scribed by the Secretary, or 
"(VIII) any combination of the foregoing, 
"(ii) EXCEPTION FOR CERTAIN ACTIVITIES.—A part-
nership shall not be treated as engaged in a trade 
or business by reason of— 
"(I) any activity undertaken as an investor, 
trader, or dealer in any asset described in clause 
(i), or 
"(II) any other activity specified in regulations 
prescribed by the Secretary, 
(iii) ELIGIBLE PARTNER.— 
"(I) IN GENERAL.—The term 'ehgible partner' 
means any partner who, before the date of the 
distribution, did not contribute to the partnership 
any property other than assets described in clause 
(i). 
"(II) EXCEPTION FOR CERTAIN NONRECOGNITION 
TRANSACTIONS.—^The term 'eUgible partner* shall 
not include the transferor or transferee in a non-
recognition transaction involving a transfer of any 
portion of an interest in a partnership with respect 
to which the transferor was not an eligible partner. 
"(iv) LOOK-THRU OF PARTNERSHIP TIERS.—Except 
as otherwise provided in regulations prescribed by the 
Secretary— 
"(I) a partnership shall be treated as engaged 
ia £uiy trade or business engaged in by, and as 
holding (instead of a partnership interest) a 
proportionate share of the assets of, any other 
partnership in which the partnership holds a part-
nership interest, and 
"(II) a partner who contributes to a partner-
ship an interest in another partnership shall be 
treated as contributiag a proportionate share of 
the assets of the other partnersnip. 
If the preceding sentence does not apply under such 
regulations with respect to any interest held by a part-
nership in another partnersmp, the interest in such 
other partnership shall be treated as if it were specified 
in a subclause of clause (i). 
"(4) BASIS OF SECURITIES DISTRIBUTED.— 
"(A) IN GENERAL.—The basis of marketable securities 
with respect to which gain is recognized by reason of this 
subsection shall be— 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5009 
"(i) their basis determiiied under section 732, 
increased by 
**(ii) the amount of such gain. 
"(B) ALLOCATION OF BASIS INCREASE.—Any increase in 
basis attributable to the gain described in subparagraph 
(A)(ii) shall be allocated to marketable securities in propor-
tion to their respective amounts of unrealized appreciation 
before such increase. 
"(5) SUBSECTION DISREGARDED IN DETERMINING BASIS OF 
PARTNER'S INTEREST IN PARTNERSHIP AND OF BASIS OF PARTNER-
SHIP PROPERTY.—Sections 733 and 734 shall be applied as if 
no gain were recognized, and no adjustment were made to 
the basis of property, under this subsection. 
"(6) CHARACTER OF GAIN RECOGNIZED.—In the case of a 
distribution of a marketable security which is an unrealized 
receivable (as defined in section 751(c)) or an inventory item 
(as defined in section 751(d)(2)), any gain recognized under 
this subsection shall be treated as ordinary income to the 
extent of any increase in the basis of such seciuity attributable 
to the gain described in paragraph (4)(A)(ii). 
"(7) REGULATIONS.—^The Secretary shall prescribe such 
regulations as may be necessary or appropriate to carry out 
the purposes of this subsection, including regulations to prevent 
the avoidance of such purposes." 
(b) CONFORMING AMENDMENTS.— 
(1) The last sentence of section 737(c)(1) is amended to 26 use 737. 
read as follows: "For purposes of determining the basis of 
the distributed property (other than monev), such increase shaM 
be treated as occurring immediately before the distribution." 
(2) Section 737 is amended by aading at the end the follow-
ing new subsection: 
"(e) MARKETABLE SECURITIES TREATED AS MONEY.— 
"For treatment of :inarketable seciirities as money for purposes of 
this section, see section TSKc)." 
(c) EFFECTIVE DATE.— 
26 use 73i note. 
(1) IN GENERAL.—^Except as otherwise provided in this sub-
section, the amendments made by this section shall apply to 
distributions after the date of the enactment of this Act 
(2) CERTAIN DISTRIBUTIONS BEFORE JANUARY i, 1995.—The 
amendments made by this section shall not apply to any 
marketable security distributed before Jsinuary 1, 1995, by 
the partnership which held such security on July 27, 1994. 
(3) 
DISTRIBUTIONS 
IN 
UQUIDATION 
OF 
PARTNER'S 
INTEREST.—The amendments made by this section shall not 
apply to the distribution of a marketable security in Uquidation 
of a partner's interest in a partnership if— 
(A) such liquidation is pursuant to a written contract 
which was binding on July 15, 1994, and at all times 
thereafter before the distribution, and 
(B) such contract provides for the purchase of such 
interest not later than a date certain for— 
(i) a fixed value of marketable securities that are 
specified in the contract, or 
(ii) other property. 
The preceding sentence shall not apply if the partner has 
the right to elect that such distribution be made other than 
in marketable securities. 
108 STAT. 5010 
PUBLIC LAW 103-465—DEC. 8, 1994 
(4) DISTRIBUTIONS IN COMPLETE UQUIDATION OF PUBUCLY 
TRADED PARTNERSHIPS.— 
(A) IN GENERAL.—The amendments made by this sec-
tion shall not apply to the distribution of a marketable 
security in a qualified partnership liquidation if— 
(i) the marketable securities were received by the 
partnership in a 
nonrecognition 
transaction in 
exchange for substantially all of the assets of the part-
nership, 
(ii) the marketable securities are distributed by 
the partnership within 90 days after their receipt by 
the partnership, and 
(iii) the partnership is Hquidated before the begin-
ning of the 1st taxable year of the partnership begin-
ning after December 31, 1997. 
(B) QUAUFIED PARTNERSHIP UQUIDATION.—For pur-
poses of subparagraph (A), the term "qualified partnership 
Uquidation'' means— 
(i) a complete Uquidation of a pubUcly traded part-
nership (as defined in section 7704(b) of the Internal 
Revenue Code of 1986) which is an existing partnership 
(as defined in section 10211(c)(2) of the Revenue Act 
of 1987), and 
(ii) a complete Uquidation of a partnership which 
is related to a partnership described in clause (i) if 
such liquidation is related to a complete Uquidation 
of the partnership described in clause (i). 
(5) MARKETABLE SECURITIES.—For purposes of this sub-
section, the term "marketable securities" has the meaning given 
such term by section 731(c) of the Internal Revenue Code 
of 1986, as added by this section. 
SEC. 742. TAXPAYER IDENTIFICATION NUMBERS REQUIRED AT BIRTEL 
26 use 32. 
(a) EARNED INCOME CREDIT.—Clause (i) of section 32(c)(3)(D) 
is amended to read as foUows: 
"(i) IN GENERAL.—^The requirements of this 
subparagraph are met if the taxpayer includes the 
name, age, and TIN of each qualifying child (without 
regard to this subparagraph) on the return of tax for 
the taxable year." 
(b) DEPENDENCY EXEMPTION.—Subsection (e) of section 6109 
is amended to read as foUows: 
"(e) FURNISHING NUMBER FOR DEPENDENTS.—Any taxpayer who 
claims an exemption under section 151 for any dependent on a 
return for any taxable year shaU include on such return the identify-
ing number (for purposes of this titie) of such dependent." 
26 u s e 32 note. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shaU apply to returns for 
taxable years beginning after December 31, 1994. 
(2) EXCEPTION.—^The amendments made by this section 
shall not apply to— 
(A) returns for taxable years beginning in 1995 with 
respect to individuals who are born after October 31, 1995, 
and 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5011 
(B) returns for taxable years beginning in 1996 with 
respect to individuals who are bom after November 30, 
1996. 
note. 
SEC. 743. EXTENSION OF INTEKNAL REVENUE SERVICE USER FEES. 
Subsection (c) of section 10511 of the Revenue Act of 1987 26USC7801 
(relating to fees for requests for ruling, determination, and similar 
letters) is amended by striking "October 1, 1995" and inserting 
"October 1, 2000". 
SEC. 744. MODIFICATION OF SUBSTANTIAL UNDERSTATEMENT PEN-
ALTY FOR CORPORATIONS PARTICIPATING IN TAX SHEL-
TE31S. 
(a) IN GENERAL.—Subparagraph (C) of section 6662(d)(2) (relat-
ing to special rules in cases involving tax shelters) is amended 
by redesignating clause (iL) as clause (iii) and by inserting after 
clause (i) the following new clause: 
"(ii) SUBPARAGRAPH (B) NOT TO APPLY TO CORPORA-
TIONS.^-Subparagraph (B) shall not apply to any item 
of a corporation which is attributable to a tax shelter." 
(b) TECHNICAL AMENDMENTS.— 
(1) Clause (i) of section 6662(d)(2)(C) is amended by striking 
"In the case of any item" and inserting "In the case of any 
item of a taxpayer otiier than a corporation which is". 
(2) Clause (iii) of section 6662(d)(2)(C), as redesignated 
by subsection (a), is amended by striking "clause (i)" and insert-
ing "this subparagraph". 
(c) EFFECTIVE DATE.—The £imendments made by this section 
26 use 6662 
shall apply to items related to transactions occurring after the 
"°**' 
date of the enactment of this Act. 
SEC. 745. MODIFICATION OF AUTHORITY TO SET TERMS AND CONDI-
TIONS FOR SAVINGS BONDS. 
(a) IN GENERAL.—Subsection (b) of section 3105 of titie 31, 
United States Code, is amended to read as foUows: 
"(b)(1) The Secretary may— 
"(A) fix the investment yield for savings bonds; and 
"(B) change the investment yield on an outstanding savings 
bond, except that the yield on a bond for the period held 
may not be decreased below the minimum yield for the period 
guaranteed on the date of issue. 
"(2) The Secretary may prescribe regulations providing that— 
"(A) owners of savings bonds may keep the bonds after 
maturity or after a period beyond maturity during which the 
bonds have earned interest and continue to earn interest at 
rates consistent with paragraph (1) of this subsection; and 
"(B) savings bonds earning a different rate of interest before 
the regulations are prescribed shall earn a rate of interest 
consistent with paragraph (1)." 
(b) EFFECTIVE DATE.—The amendment made by this section 
3i use 3105 
shsill apply to bonds issued after October 31, 1994. 
^°^-
108 STAT. 5012 
PUBLIC LAW 103-465—DEC. 8, 1994 
SJSo; A
c
t o
f 
Subtitle F—Pension Plan Funding and 
^
^
^
^ 
Premiums 
26 u s e 1 note. 
SEC. 750. SHORT TITLE. 
This subtitle may be cited as the "Retirement Protection Act 
of 1994". 
PART I—PENSION PLAN FUNDING 
Subpart A—-Amendments to the Internal Revenue 
Code of 1986 
SEC. 751. MINIMUM FUNDING REQUIREMENTS. 
(a) AMENDMENTS TO ADDITIONAL FUNDING REQUIREMENTS FOR 
SINGLE-EMPLOYER PLANS.— 
(1) LIMITATIONS ON ADDITIONAL FUNDING REQUIREMENT FOR 
CERTAIN PLANS.— 
26 use 412. 
(A) IN GENERAL.—Paragraph (1) of section 412(1) (relat-
ing to additional funding requirements for plans which 
are not multiemployer plans) is amended by striking "which 
has an unfunded current Uability" and inserting "to which 
this subsection applies under paragraph (9)". 
(B) PLANS TO WHICH REQUIREMENT APPLIES.—Section 
412(1) is eimended by adding at the end the following new 
PEiragraph: 
(9) APPLICABIUTY OF SUBSECTION.— 
"(A) IN GENERAL.—Except as provided in paragraph 
(6)(A), this subsection shall apply to a plan for any plan 
year if its funded current liaDility percentage for such 
year is less than 90 percent. 
"(B) EXCEPTION FOR CERTAIN PLANS AT LEAST SO PER-
CENT FUNDED.—Subparagraph (A) shall not apply to a plan 
for a plan year i
f
—
-
"(i) the funded current Uability percentage for the 
plan year is at least 80 percent, and 
"(ii) such percentage for each of the 2 immediately 
preceding plan years (or each of the 2d and 3d imme-
diately preceding plan years) is at least 90 percent 
"(C) 
FUNDED CURRENT LIABIUTY PERCENTAGE.—For 
purposes of subparagraphs (A) and (B), the term funded 
ciurent liabiHty percentage' has the meaning given such 
term by paragraph (8)(B), except that such percentage shall 
be determined for any plan year— 
"(i) without regard to paragraph (8)(E), and 
"(ii) by using the rate of interest which is the 
highest rate allowable for the plan year under para-
graph (7)(C). 
^(D) 
TRANSITION 
RULES.—For 
purposes 
of 
this 
paragraph: 
"(i) FUNDED PERCENTAGE FOR YEARS BEFORE 1995.— 
The funded current Uability percentage for any plan 
year beginning before January 1, 1995, shall be treated 
as not less than 90 percent only if for such plan year 
tJie plan met one of the following requirements (as 
in effect for such year): 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5013 
"(I) The full-funding limitation under sub-
section (c)(7) for the plan was zero. 
"(II) The plan had no additional funding 
requirement under this subsection (or would have 
had no such requirement if its fiinded current 
UabHity percentage had been determined under 
subparagraph (O). 
"(IID The plan's additional funding require-
ment under this subsection did not exceed the 
lesser of 0.5 percent of current habiUty or 
$5,000,000. 
"(ii) SPECIAL RULE FOR 1995 AND I996.—For pur-
poses of determining whether subparagraph (B) apphes 
to any plan year beginning in 1995 or 1996, a plan 
shall be treated as meeting the requirements of 
subparagraph (B)(ii) if the plan met the requirements 
of clause (i) of this subparagraph for any two of the 
plan years beginning in 1992, 1993, and 1994 (whether 
or not consecutive)." 
(2) RELATIONSHIP OF ADDITIONAL FUNDING REQUIREMENT 
TO FUNDING STANDARD ACCOUNT CHARGES AND CREDITS.— 
(A) Clause (ii) of section 412(1)(1)(A) is amended to 26 USC 412. 
read as foUows: 
"(ii) the sum of the charges for such plan year 
^^ under subsection (b)(2), reduced by the sum of the 
credits for such plan year under subparagraph (B) 
of subsection (b)(3), plus . 
(B) The last sentence in section 412(1)(1) of such Code 
is amended to read as follows: 
"Such increase shall not exceed the amount which, after taking 
into account cheirges (other than the additional charge under 
this subsection) and credits under subsection (b), is necessary 
to increase the funded current UabiUty percentage (taking into 
account the expected increase in current liabiHty due to benefits 
accruing during the plan year) to 100 percent" 
(3) AMENDMENT TO DEFICIT REDUCTION CONTRIBUTION.— 
Paragraph (2) of section 412(1) is amended— 
(A) by striking "plus" at the end of subparagraph (A); 
(B) by strikijig the period at the end of subparagraph 
(B) and inserting: , plus , and 
(C) by adding at the end the following new 
subparagraph: 
"(C) the expected increase in current UabiUty due to 
benefits accruing during the plan year." 
(4) INCREASE IN CURRENT LL^^ILITY DUE TO CHANGE IN 
REQUIRED ASSUMPTIONS.— 
(A) Paragraph (3) of section 412(1) is amended by add-
ing at the end the following new subparagraphs: 
"(D) SPECLM. RULE FOR REQUIRED CHANGES IN ACTUAR-
IAL ASSUMPTIONS.— 
"(i) IN 
GENERAL.—The unfiinded old Uability 
amount with respect to any plan for any plan year 
shall be increased by the amount necessary to amortize 
the amount of additional unfunded old liabiUty under 
the plan in equal annual installments over a period 
of 12 plan years (beginning with the first plan year 
beginning after December 31,1994). 
108 STAT. 5014 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(ii) ADDITIONAL UNFUNDED OLD UABILITY.—For 
purposes of clause (i), the term 'additional unfunded 
old liabilitv' means the amoiuit (if any) by which— 
"(D the current Uability of the plan as of the 
beginning of the first plan year beginning after 
December 31, 1994, valued using the assumptions 
required by paragraph (7)(C) as in effect for plan 
years beginning after December 31, 1994, exceeds 
"(II) the current Uability of the plan £is of 
the beginning of such first plan year, valued using 
the same assumptions used under subclause (I) 
(other than the assiunptions required by para-
graph (7)(C)), using the prior interest rate, and 
using such mortality assumptions as were used 
to determine ciurent UabiUty for the first plan 
year beginning after December 31, 1992. 
"(iu) PRIOR INTEREST RATE.—For purposes of clause 
(u), the term 'prior interest rate' means the rate of 
interest that is the same percentage of the weighted 
average under subsection (b)(5)(B)(ii)(I) for the first 
plan year beginning after December 31, 1994, as the 
rate of interest used by the plan to determine current 
UabiUty for the first plan year beginning after Decem-
ber 31, 1992, is of tne weighted average under sub-
section (b)(5)(B)(u)(I) for such first plan year beginning 
after December 31,1992. 
"(E) OPTIONAL RULE FOR ADDITIONAL UNFUNDED OLD 
LIABIUTY.— 
"(i) IN GENERAL.—If an employer makes an election 
under clause (U), the additional unfiinded old UabiUty 
for purposes of subparagraph (D) shall be the amount 
(if any) by which— 
(I) the unfunded current UabiUty of the plan 
as of the beginning of the first plan year beginning 
after December 31, 1994, valued using the assump-
tions required by paragraph (7)(C) as in effect 
for plan years beginning after December 31, 1994, 
exceeds 
"(11) the unamortized portion of the unfunded 
old UabiUty under the plan as of the beginning 
of the first plan year beginning after December 
31,1994. 
"(ii) ELECTION.— 
"(I) An employer may irrevocably elect to apply 
the provisions of this subpsu-agraph as of the begin-
ning of the first plan year beginning after Decem-
ber 31,1994. 
"(II) If an election is made under this clause, 
the increase luider paragraph (1) for any plan 
year beginning after December 31, 1994, and 
before January 1, 2002, to which this subsection 
appUes (without regard to this subclause) shaU 
not be less than the increase that would be 
required under paragraph (1) if the provisions of 
this titie as in effect for the last plan year begin-
ning before January 1, 1995, had remained in 
effect" 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5015 
(B) Clause (i) of section 412(1)(4)(B) is amended by 
26 use 412. 
inserting ", the unamortized portion of tiie additional 
unfiinded old liability," after "old liability". 
(5) APPLICABLE PERCENTAGE FOR DETERMINING UNFUNDED 
NEW LIABILITY AMOtfNT.—Subparagraph (C) of section 412(1)(4) 
is amended— 
(A) by striking ".25" and inserting ".40", and 
(B) by striking "35" and inserting "60". 
(6) UNPREDICTABLE CONTINGENT EVENT AMOUNT.— 
(A) Subparagraph (A) of section 412(1)(5) is amended— 
(i) by strikmg "greater of and inserting "greatest 
of before clause (i); 
(ii) by striking "or" at the end of clause (i); 
(iii) by striking the period at the end of clause 
(ii) and inserting ", or"; and 
(iv) by adding after clause (ii) the following new 
clause: 
"(iii) the additional amount that would be deter-
mined imder paragraph (4)(A) if the unpredictable 
contingent event benefit liabilities were included in 
unfunded new liability notwithstanding psiragraph 
(4)(B)(ii)." 
(B) Paragraph (5) of section 412(1) is amended by add-
ing at the end the following new subparagraph: 
"(E) LIMITATION.—The present value of the amounts 
described in subparagraph (A) with respect to any one 
event shall not exceed the unpredictable contingent event 
benefit liabiHties attributable to that event" 
(C) Clause (ii) of section 412(m)(4)(D) is amended— 
(i) by slaiking "greater of and inserting "greatest 
of before subclause (I); 
(ii) by striking "or" at the end of subclause (I); 
(iii) by striking the period at the end of subclause 
(II) and inserting ", or"; and 
(iv) by adding after subclause (II) the following 
new clause: 
"(III) 25 percent of the amoimt determined 
under subsection (l)(5)(A)(iii) for the plan year." 
(7) REQUIRED INTEREST RATE AND MORTALITY ASSUMPTIONS 
FOR DETERMINING CtfRRENT LIABILITY.— 
(A) IN GENERAL.—Subparagraph (C) of section 412(1)(7) 
is amended to read as foUows: 
"(C) INTEREST RATE AND MORTALITY ASSUMPTIONS 
Effective date. 
USED.—Effective for plan years beginning after December 
31,1994— 
"(i) INTE:REST RATE.— 
"(I) IN GENERAL.—The rate of interest used 
to determine current HabiHty under this subsection 
shall be the rate of interest used under subsection 
(b)(5), except that the highest rate in the permis-
sible range under subparagraph (B)(ii) thereof 
shall not exceed the specified percentage under 
subclause (II) of the weighted average referred 
to in such subparagraph. 
"(II) SPECIFIED PERCENTAGE.—For purposes of 
subclause (I), the specified percentage snail be 
determined as foUows: 
108 STAT. 5016 
PUBLIC LAW 103-465—DEC. 8, 1994 
"Li the case of 
plan years beginning 
The specified 
in calendar year: 
percentage is: 
1995 
109 
1996 
108 
1997 
107 
1998 
106 
1999 and thereafter 
106. 
"(ii) MORTAUTY TABLES.— 
"(I) COMMISSIONERS' STANDARD TABLE.—In the 
case of plan years beginning before the first plan 
year to which the &rst tables prescribed under 
subclause (II) apply, the mortality table used in 
determining current liabUity under this subsection 
shall be the table prescribed by the Secretary 
which is based on the prevailing commissioners' 
standard table (described in section 807(d)(5)(A)) 
used to determine reserves for group annuity con-
tracts issued on January 1,1993. 
"(II) SECRETARL^L AUTHORITY.—The Secretary 
may by regulation prescribe for plan years begin-
ning after December 31, 1999, mortality tables 
to be used in determining current liabihty under 
this subsection. Such tables shall be based upon 
the actual expjerience of pension plans and pro-
jected trends in such experience. In prescribing 
such tables, the Secretary shall take into account 
results of available independent studies of mortal-
ity of individuals covered by pension plans. 
"(Ill) PERIODIC REVIEW.—The Secretary shall 
periodically (at least every 5 years) review any 
tables in effect under this subsection and shall, 
to the extent the Secretary determines necessary, 
by regulation update the tables to reflect the actual 
experience of pension plans and projected trends 
in such experience. 
"(iii) SEPARATE MORTALITY TABLES FOR THE DIS-
ABLED.—Notwithstanding clause (ii)— 
"(I) IN GENERAL.—In the case of plan years 
beginning after December 31, 1995, the Secretary 
shall establish mortaUty tables which may be used 
(in Ueu of the tables under clause (ii)) to determine 
current Uability imder this subsection for individ-
uals who are entitled to benefits under the plan 
on account of disability. The Secretary shall estab-
lish separate tables for individuals whose disabil-
ities occur in plan years beginning before January 
1, 1995, and for individuals whose disabihties 
occur in plan years beginning on or after such 
date. 
"(II) 
SPECL\L RULE FOR DISABILITIES OCCUR-
RING AFTER 1994.—In the case of disabilities occur-
ring in plan years beginning after December 31, 
1994, the tables under subclause (I) shall apply 
only with respect to individuals described in such 
subclause who are disabled within the meaning 
of title II of the Social Security Act and the regula-
tions thereunder. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5017 
"(III) PLAN YEARS BEGINNING IN 1995.—In the 
case of any plan year beginning in 1995, a plan 
may use its own mortality assumptions for individ-
uals who are entitled to benefits under the plan 
on account of disability." 
(B) AMORTIZATION OF UNFUNDED MORTALITY INCREASE 
AMOUNT.— 
(i) IN GENERAL.—Paragraph (2) of section 412(1), 
as amended by paragraph (3), is amended by striking 
"plus" at the end of subparagraph (B), by striking 
the period, at the end of subparagraph (C) and inserting 
", and", and by adding at the end the following new 
subparagraph: 
"(D) the aggregate of the unfunded mortaUty increase 
amounts." 
(ii) 
UNFUNDED MORTAUTY INCREASE AMOUNT.— 
Section 412(1), as amended by paragraph (1), is 
< 
amended by adding at the end the following new para-
graph: 
"(10) UNFUNDED MORTALITY INCREASE AMOUNT.— 
"(A) IN GENERAL.—The imfunded mortahty increase 
amount with respect to each unfunded mortahty increase 
is the amount necessary to amortize such increase in equal 
annuttl installments over a period of 10 plan years (begin-
ning with the first plan year for which a plan uses any 
new mortahty table issued imder paragraph (7)(C)(ii)(II) 
or (III)). 
"(B) UNFUNDED MORTALITY INCREASE.—For purposes 
of subparagraph (A), the term ^unfunded mortahty increase' 
means an amount equal to the excess of— 
"(i) tlie current habUity of the plan for the first 
plan year for which a plan uses any new mortality 
table issued under paragraph (7)(C)(ii)(II) or (III), over 
"(ii) the current Uabihty of the plan for such plan 
year which would have been determined if the mortal-
ity table in effect for the preceding plan year had 
been used." 
: 
; 
(iii) CONFORMING AMENDMENT.—Clause (i) of sec-
tion 412(1)(4)(B), as amended by paragraph (4)(B), is 
amended by inserting "the unamortized portion of each 
unfunded 
mortality 
increase," 
after 
"additional 
unfunded old Uabihty,". 
(8) TRANSITION RULE.—Section 412(1), as amended by para-
graph (7), is amended by adding at the end the following 
new paragraph: 
(11) 
PHASE-IN OF INCREASES IN FUNDING REQUIRED BY 
RETIREMENT PROTECTION ACT OF 1994.— 
"(A) IN GENERAL.—For any appUcable plan year, at 
the election of the employer, the increase under paragraph 
(1) shall not exceed the greater of— 
"(i) the increase that would be required under 
paragraph (1) if the provisions of this title as in effect 
for plan years beginning before January 1, 1995, had 
remainea in effect, or 
"(ii) the amoimt which, after taking into account 
charges (other than the additional charge under this 
subsection) and credits under subsection (b), is nec-
79-194 O—95—15 : QL 3 Part 6 
108 STAT. 5018 
PUBLIC LAW 103-465—DEC. 8, 1994 
essary to increase the funded current liability percent-
age (taking into account the expected increase in cur-
rent liabihty due to benefits accruing dming the plan 
year) for the appUcable plan year to a percentage equal 
to the sum of the initial Ainded current liability 
percentage of the plan plus the appHcable number 
of percentage points for such applicable plan year. 
*(B) APPUCABLE NUMBER OF PERCENTAGE POINTS.— 
"(i) INITIAL FUNDED CURRENT LIABILITY PERCENT-
AGE OF 75 PERCENT OR LESS.—Except as provided in 
clause (ii), for plans with an initial funded current 
UabOity percentage of 75 percent or less, the appUcable 
number of percentage points for the appUcable plan 
year is: 
"In the case 
The applicable 
of applicable 
number of 
E
lan years 
percentage 
eginning in: 
points is: 
1995 
3 
1996 
6 
1997 
9 
1998 
12 
1999 
15 
2000 
19 
2001 
24. 
"(ii) OTHER CASES.—In the case of a plan to which 
this clause appUes, the appUcable number of percent-
age points for any such appUcable plan year is the 
sum of— 
"(I) 2 percentage points; 
"(II) the appUcable number of percentage 
points (if any) under this clause for the preceding 
appUcalDle plan year, 
"(III) the product of .10 multiplied by the 
excess (if any) of (a) 85 percentage points over 
(b) the sum of the initial funded current UabOity 
percentage and the number determined under 
subclause (II); 
"(IV) for appUcable plan years beginning in 
2000,1 percentage point; and 
"(V) for appUcable plan years beginning in 
2001, 2 percentage points, 
"(in) PLANS TO WHICH CLAUSE (U) APPLIES.— 
"(I) IN GENERAL.—Clause (ii) shall apply to 
a plan for an appUcable plan year if the initial 
funded current liability percentage of such plan 
is more than 75 percent 
"(II) PLANS INITIALLY UNDER CLAUSE (i).—In 
the case of a plan which (but for this subclause) 
has an initial funded current UabiUty percentage 
of 75 percent or less, clause (u) (and not clause 
(i)) shsdl apply to such plan with respect to 
appUcable plan years beginning after the first 
appUcable plan year for which the sum of the 
initial funded current UabiUty percentage and the 
appUcable niunber of percentage points (deter-
mined under clause (i)) exceeds 75 percent For 
purposes of applying clause (ii) to such a plan. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5019 
the initial funded current liability percentage of 
such plan shall be treated as beiag the sum 
referred to in the preceding sentence. 
"(C) DEFINITIONS.—^For purposes of this paragraph: 
**(i) The term 'applicable plan year means a plan 
year begiinning after December 31, 1994, and before 
January 1, 2002. 
**(ii) The term ^initial funded current liability 
percentage' means the funded current liabUity percent-
age as of the first day of the first plan year beginning 
after December 31,1994." 
(9) LIQUIDITY REQUIREMENT.— 
(A) IN GENERAL.—Section 412(m) is amended by 
26USC412. 
redesignating paragraph (5) as paragraph (6) and by insert-
ing after psiragraph (4) the following new paragraph: 
"(5) LIQUIDITY REQUIREMENT.— 
"(A) IN GENERAL.—^A plan to which this paragraph 
appHes shall be treated as failing to pay the full amount 
of Euay required installment to the extent that the value 
of the liquid assets paid in such installment is less than 
the Uquidity shortfall (whether or not such Uquidity short-
fall exceeds the amoimt of such installment required to 
be paid but for this paragraph). 
"(B) PLANS TO WHICH PARAGRAPH APPUES.—This para-
graph shall apply to a defined benefit plan (other than 
a multiemployer plan or a plan described in subsection 
(1)(6)(A)) which— 
"(i) is required to pay installments under this sub-
section for a plan year, and 
"(ii) lias a liquidity shortfall for any quarter during 
such plan year. 
"(C) PERIOD OF UNDERPAYMENT.—For purposes of para-
graph (1), any portion of an installment that is treated 
as not paid under subparagraph (A) shall continue to be 
treated as unpaid until the close of the quarter in which 
the due date for such installment occurs. 
"(D) LIMITATION ON INCREASE.—If the amount of 
any 
required installment is increased by reason of subpara-
graph (A), in no event shall such increase exceed the 
amount which, when added to prior installments for the 
plan year, is necessary to increase the funded current 
liabOity percentage (taking into account the expected 
increase in current Uability due to benefits accruing during 
the plan year) to 100 percent 
"(E) DEFINITIONS.—For purposes of this paragraph: 
"(i) LIQUIDITY SHORTFALL.—The term 'Hquidi^ 
shortfall' mesuis, with respect to any required install-
ment, an amount equal to the excess (as of the last 
day of the quarter for which such installment is made) 
of the base amount with respect to such quarter over 
the value (as of such last day) of the plan's Hquid 
assets. 
"(ii) BASE AMOUNT.— 
"(I) IN GENERAL.—The term *base amoimf 
means, with respect to any quarter, an amount 
equal to 3 times the sum of the a4justed disburse-
108 STAT. 5020 
PUBLIC LAW 103-465—DEC. 8, 1994 
ments from the plan for the 12 months ending 
on the last day of such quarter. 
"(II) SPECIAL RULE.—If the amount determined 
under clause (i) exceeds an amount equal to 2 
times the sum of the adjusted disbursements from 
the plan for the 36 months ending on the last 
day of the quarter and an enrolled actuary certifies 
to the satisfaction of the Secretary that such excess 
is the result of nonreciuTing circumstances, the 
base amount with respect to such quarter shall 
be determined without regard to amounts related 
to those nonrecurring circumstances. 
"(iii) DISBURSEME^^^s FROM THE PLAN.—The term 
'disbursements from the plan* means aU disbursements 
from the trust, including purchases of annuities, pay-
ments of single simis and other benefits, and adminis-
trative expenses. 
"(iv) 
ADJUSTED 
DISBURSEMENTS.—The 
term 
'adjusted disbursements' means disbursements from 
the plan reduced by the product of— 
"(I) the plan's funded current liability percent-
age (as defined in subsection (1)(8)) for tiie plan 
year, and 
"(II) the sum of the purchases of annuities, 
payments of single sums, and such other disburse-
ments as the Secretary shall provide in regula-
tions. 
"(v) LIQUID ASSETS.—^The term liquid assets' 
means cash, marketable securities and such other 
assets as specified by the Secretary in regulations. 
"(vi) QUARTER.—^The term 'quarter* means, with 
respect to any required instaUment, the 3-month period 
preceding the month in which the due date for such 
installment occurs. 
"(F) REGULATIONS.—The Secretary may prescribe such 
regulations as are necessary to carry out this paragraph." 
(B) EXCISE TAX ON UNPAID UQUIDITY SHORTFALL.— 
26 use 4971. 
(i) Subsection (e) of section 4971 is amended by 
striking "(a) or (b)" wherever it appears and inserting 
"(a),(b),or(f)''. 
(ii) Section 4971 is amended by redesignating sub-
section (f) as subsection (g) and adding a new sub-
section (f) to read as follows: 
"(f) FAILURE TO PAY LIQUIDITY SHORTFALL.— 
"(1) IN GENERAL.—In the case of a plan to which section 
412(m)(5) appUes, there is hereby imposed a tax of 10 percent 
of the excess (if any) of— 
"(A) the amount of the Uquidity shortfall for any quar-
ter, over 
"(B) the amoimt of such shortfall which is paid by 
the required installment under section 412(m) for such 
a
uarter (but only if such installment is paid on or before 
tie due date for such installment). 
"(2) ADDITIONAL TAX.—If the plan has a Uquidity shortfaU 
as of the close of any quarter and as of the close of each 
of tiie foUowing 4 quarters, there is hereby imposed a tax 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5021 
equal to 100 percent of the amount on which tax was imposed 
by paragraph (1) for such first quarter. 
"(3) DEFINITIONS AND SPECIAL RULE.— 
"(A) LIQUIDITY SHORTFALL; QUARTER.—For purposes of 
this subsection, the terms liquidity shortfall' and 'quarter' 
have the respective meanings given such terms by section 
412(m)(5). 
"(B) SPECIAI:. RULE.—If the tax imposed by paragraph 
(2) is paid with respect to any liquidity shortfall for any 
quarter, no further tax shall be imposed by this subsection 
on such shortfall for such quarter." 
(C) TREATMENT OF FAILURE TO MAKE CERTAIN PAY-
MENTS IF PLAN HAS LIQUIDITY SHORTFALL.—Section 401(a) 26 use 40L 
is amended by adding at the end the following new para-
graph: 
^(32) TREATMENT OF FAILURE TO MAKE CERTAIN PAYMENTS 
IF PLAN HAS LIQUIDITY SHORTFALL.— 
"(A) IN GENERAL.—^A trust forming part of a pension 
plan to which section 412(m)(5) applies shall not be treated 
as failing to constitute a qualified trust under this section 
merely because such plan ceases to make any payment 
described in subparagraph (B) during any period tnat such 
plan has a Uquidity shortfall (as defined in section 
412(m)(5)). 
"(B) PAYMENTS DESCRIBED.—A payment is described 
in this subparagraph if such payment is— 
"(i) any payment, in excess of the monthly amount 
paid under a single hfe annuity (plus any social secu-
rity supplements described in me last sentence of sec-
tion 411(a)(9)), to a participant or beneficiary whose 
annuity staxiins date (as defined in section 417(f)(2)) 
occurs during the period referred to in subparagraph 
(A), 
"(ii) any payment for the purchase of an urevocable 
commitment fix)m an insurer to pay benefits, and 
"(iii) any other payment specified by the Secretary 
by regulations. 
"(C) PERIOD OF SHORTFALL.—For purposes of this para-
graph, a plan has a liquidity shortfall diuing the period 
that there is an underpavment of an installment under 
section 412(m) by reason of paragraph (5XA) thereof" 
(10) 
AMENDMENT 
TO 
DEFINITION 
OF 
FULL-FUNDING 
LIMITATION.— 
(A) Subparagraph (A) of section 412(c)(7) is amended 
by inserting "(including the expected increase in current 
Habihty due to benefits accruing during the plan year)" 
after "current liability" in clause (i). 
(B) Section 412(c)(7) is amended by adding at the end 
the following new subparagraph: 
"(E) MINIMUM AMOUNT.— 
"(i) IN GENERAL.—In no event shall the fiill-fiinding 
limitation determined under subparagraph (A) be less 
than the excess (if any) of— 
"(I) 90 percent of the current liability of the 
E
lan (including the expected increase in current 
ability due to benefits accruing during the plan 
yesir), over 
108 STAT. 5022 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(II) the value of the plan's assets determined 
under paragraph (2). 
"(ii) CURRENT LIABILITY; ASSETS.—^For purposes of 
clause (i)— 
"(I) the term 'current liability' has the meaning 
given such term by subsection (1)(7) (without 
regard to subpsiragraph (D) thereof), and 
"(II) assets shall not be reduced by any credit 
balance in the funding standard account." 
26 use 412. 
(C) Subparagraph (B) of section 412(c)(7) is amended 
to read as follows: 
"(B) CURRENT LIABILITY.—For purposes of subpara-
graph (D) and subclause (I) of subparagraph (A)(i), the 
term 'current UabOity' has the meaning given such term 
by subsection (1)(7) (without regard to subparagraphs (C) 
and (D) thereof) and using the rate of interest used under 
subsection (b)(5)(B).'' 
(11) REFERENCE TO ACT.—Section 404(g)(4) is amended by 
striking "the Single-Employer Pension Plan Amendments Act 
of IQSo' £ind inserting "the Retirement Protection Act of 1994". 
26 u s e 401 note. 
(b) EFFECTIVE DATES.— 
(1) IN GENERAL.—^Except as provided in psiragraph (2), the 
amendments made by this section shall apply to plan years 
beginning after December 31,1994. 
(2) REFERENCE.—The amendment made by subsection 
(a)(ll) slmll take effect on the date of the enactment of this 
Act. 
SEC. 752. LBDTATION ON CHANGES IN CURRENT LIABILITY 
ASSUMPTIONS. 
(a) IN GENERAL.—Paragraph (5) of section 412(c) is amended— 
(1) by striking "If the funding method" and inserting the 
following: 
"(A) IN GENERAL.—If the funding method", and 
(2) by adding at the end the following new subparagraph: 
"(B) APPROVAL REQUIRED FOR CERTAIN CHANGES IN 
ASSUMPTIONS BY CERTAIN SINGLE-EMPLOYER PLANS SUBJECT 
TO ADDITIONAL FUNDING REQUIREMENT.— 
"(i) IN GENERAL.—No actuarial assumption (other 
than the assimiptions described in subsection (1)(7)(C)) 
used to determine the current UabiUty for a plan to 
which this subparagraph appUes may be changed with-
out the approval of the Secretary. 
"(ii) PLANS TO WHICH SUBPARAGRAPH APPLIES.— 
This subparagraph shsill apply to a plan only if— 
(I) tne plan is a defined oenefit plan (other 
than a multiemployer plan) to which titie IV of 
the Employee Retirement Income Security Act of 
1974 appUes; 
"(II) the aggregate unfunded vested benefits 
as of the close of the preceding pljin year (as deter-
mined under section 4006(a)(3)(E)(iii) of the 
Employee Retirement Income Security Act of 1974) 
of such plan and all other plans maintained by 
the contributing sponsors (as defined in section 
4001(a)(13) of such Act) and members of such spon-
sors' controlled groups (as defined in section 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5023 
4001(a)(14) of such Act) which are covered by title 
IV of such Act (disregarding plans with no 
unfunded vested benefits) exceed $50,000,000; and 
"(III) the change in assumptions (determined 
after taking into account any cnanges in interest 
rate and mortality table) results in a decrease 
in the unfunded current UabUity of the plan for 
the current plan year that exceeds $50,000,000, 
or that exceeds $5,000,000 and that is 5 percent 
or more of the current UabUity of the plan before 
such change." 
(b) EFFECTIVE DATE,,— 
26 use 412 note. 
(1) IN GENERA]..—^The amendment made by this section 
shaU apply to changes in assiunptions for plan years beginning 
after October 28,1993. 
(2) CERTAIN CH/\NGES CEASE TO BE EFFECTIVE.—In the case 
of changes in assumptions for plan years beginning after 
December 31, 1992, and on or before October 28, 1993, such 
changes shaU cease to be eftective for plan years beginning 
after December 31,1994, if— 
(A) such change would have required the approval 
of the Secretary of the Treasury had such amendment 
appUed to such mange, and 
(B) such change is not so approved. 
SEC. 763. ANTICIPATION OF BARGAINED BENEFIT INCREASES. 
(a) IN GENERAL.—Section 412(c) is amended by adding at the 
26 use 412. 
end the foUowing new paragraph: 
"(12) AJJTICIPATION OF BENEFIT INCREASES EFFECTIVE IN 
THE FUTURE.—In determining projected benefits, the funding 
method of a coUectively bargained plan described in section 
413(a) (other than a multiemployer plan) shaU anticipate bene-
fit increases schediUed to take effect during the term of the 
coUective bargaining agreement appUcable to the plan." 
(b) EFFECTIVE DATE.—The amendment made by this section 
26 use 412 note. 
shall apply to plan years beginning after December 31, 1994, with 
respect to coUective bargaining agreements in effect on or after 
January 1, 1995. 
SEC. 754. MODIFICATION 
OF 
QUARTERLY 
CONTRIBUTION 
REQUIREMENT. 
(a) IN GENERAL.—Paragraph (1) of section 412(m) is amended— 
(1) by inserting Vmch has a funded cmrent liabiUty 
percentage (as defined in subsection (1X8)) for the preceding 
plan year of less than 100 percent" before "fails", and 
(2) by striking "any plan year" and inserting "the plan 
year". 
(b) EFFECTIVE DATE.—The amendment made by this section 
26 use 412 note. 
shall apply to plan years beginning after the date of enactment 
of this Act. 
SEC. 765. EXCEPTIONS 
TO 
EXCISE 
TAX 
ON 
NONDEDUCTIBLE 
CONTRIBUTIONS. 
(a) IN GENERAL.—Section 4972(c) is amended by adding at 
the end the foUowing new paragraph: 
"(6) EXCEPTIONS.—In determining the amoimt of non-
deductible contributions for any taxable year, there shaU not 
be taken into account— 
108 STAT. 5024 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(A) contributions that would be deductible under sec-
tion 404(a)(1)(D) if the plan had more than 100 participants 
if— 
"(i) the plan is covered under section 4021 of the 
Employee Retirement Income Security Act of 1974, 
and 
"(ii) the plan is terminated under section 4041(b) 
of such Act on or before the last day of the taxable 
year, and 
"(B) contributions to 1 or more defined contribution 
E
lans which are not deductible when contributed solelv 
ecause of section 404(a)(7), but only to the extent sucn 
contributions do not exceed 6 percent of compensation 
(within the meaning of section 404(a)) paid or accrued 
(during the taxable year for which the contributions were 
made) to beneficiaries under the plans. 
If 1 or more defined benefit plans were taken into account 
in determining the amount allowable as a deduction under 
section 404 for contributions to any defined contribution plan, 
subparagraph (B) shall apply only if such defined benefit plans 
are described in section 404(a)(1)(D). For purposes of subpara-
f
raph (B), the deductible limits under section 404(a)(7) shall 
rst be appHed to amounts contributed to a defined benefit 
plan and then to amounts described in subparagraph (B)." 
26 use 4972 
fb) EFFECTIVE DATE.— 
"°*®- 
(1) 
SECTION 
4972(C)(6XA).—Section 
4972(c)(6)(A) 
of 
the 
Internal Revenue Code of 1986 (as added by this section) shall 
apply to taxable years ending on or after the date of enactment 
of tiiis Act. 
(2) SECTION 4972(CX6XB).—Section 4972(c)(6)(B) of such Code 
(as added by this section) shall apply to taxable years ending 
on or after December 31, 1992. 
Subpart B—^Amendments to the Employee 
Retirement Income Security Act of 1974 
SEC. 761. MINIMUM FUNDING REQUIREMENTS. 
(a) AMENDMENTS TO ADDITIONAL FUNDING REQUIREMENTS FOR 
SINGLE-EMPLOYER PLANS.— 
(1) LIMITATIONS ON ADDITIONAL FUNDING REQUIREMENT FOR 
CERTAIN PLANS.— 
(A) IN GENERAL.—Paragraph (1) of section 302(d) of 
the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1082(d)) is amended by striking "which has an 
unfunded current liabiUty" and inserting "to which this 
subsection applies under paragraph (9)". 
(B) PLANS TO WHICH REQUIREMENT APPLIES.—Section 
302(d) of such Act is amended by adding at the end the 
following new paragraph: 
"(9) APPLICABILITY OF SUBSECTION.— 
"(A) IN GENERAL.—Except as provided in paragraph 
(6)(A), this subsection shall apply to a plan for any plan 
year if its funded current Uability percentage for such 
year is less than 90 percent 
"(B) EXCEPTION FOR CERTAIN PLANS AT LEAST SO PER-
CENT FUNDED.—Subparagraph (A) shall not apply to a plan 
for a plan year if— 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5025 
"(i) the funded current liability percentage for the 
planyear is at least 80 percent, and 
*Xii) such percentage for each of the 2 immediately 
preceding' plan years (or each of the 2d and 3d imme-
diately preceding plan years) is at least 90 percent 
"(C) FLINDED CURRENT UABIUTY PERCENTAGE.—For 
purposes of subparagraphs (A) and (B), the term funded 
ciurent liabiHty percentage' has the meaning given such 
term by paragrapn (8)(B), except that such percentage shall 
be determined for any plan year— 
"(i) without regard to paragraph (8XE), and 
"(ii) by using the rate of interest which is the 
highest rate allowable for the plan year under para-
graph (7)(C). 
ID) TRANSITION RULES.—For purposes of this para-
graph: 
"(i) FUNDED PERCENTAGE FOR YEARS BEFORE 1995.— 
The ^nded current liability percentage for any plan 
year beginning before JanuEuy 1, 1995, shall be treated 
as not less thsin 90 percent only if for such plan year 
the plan met one of the following requirements (as 
in effect for such year): 
"(I) The full-funding hmitation under sub-
section (c)(7) for the plan was zero. 
"(II) The plan had no additional funding 
requirement under this subsection (or would have 
had no such requirement if its fimded cmrent 
liability percentage had been determined under 
subparagraph (C)). 
"(Ill) The plan's additional funding require-
ment under this subsection did not exceea the 
lesser of 0.5 percent of current liabiHty or 
$5,000,000. 
"(ii) SPECIAL RULE FOR 1995 AND 1996.—For piu*-
poses of determining whether subparagraph (B) applies 
to any plan year beginning in 1995 or 1996, a plan 
shall be treated as meeting the requirements of 
subparagraph (B)(ii) if the plan met the requirements 
of clause (i) of this subparagraph for any two of the 
plan years beginning in 1992, 1993, and 1994 (whether 
or not consecutive)." 
(2) RELATIONSHIP OF ADDITIONAL FUNDING REQUIREMENT 
TO FUNDING STANDARD ACCOUNT CHARGES AND CREDITS.— 
(A) Clause (ii) of section 302(d)(1)(A) of such Act is 29 use 1082. 
amended to read as follows: 
"(ii) the sum of the chsu^es for such plan year 
under subsection (b)(2), reduced by the sum of the 
a 
credits for such plan year under subparagraph (B) 
of subsection (b)(3), plus . 
(B) The last sentence in section 302(d)(1) of such Act 
is amended to read as follows: 
"Such increase shall not exceed the amount which, after taking 
into accoimt charges (other than the additional charge under 
this subsection) and credits under subsection (b), is necessary 
to increase the funded current Hability percentage (taking into 
account the expected increase in current liability due to benefits 
accruing during tlie plan year) to 100 percent" 
108 STAT. 5026 
PUBLIC LAW 103-465—DEC. 8, 1994 
(3) AMENDMENT TO DEFICIT REDUCTION CONTRIBUTION.— 
29 use 1082. 
Paragraph (2) of section 302(d) of such Act is amended— 
(A) by striking "plus" at the end of subparagraph (A); 
(B) by striking tne period at the end of subparagraph 
(B) and inserting ", plus"; and 
(C) by adding at the end the following new subpara-
graph: 
"(C) the expected increase in current Habihty due to 
benefits accruing during the plan year." 
(4) INCREASE IN CURRENT LIABIUTY DUE TO CHANGE IN 
REQUIRED ASSUMPTIONS.— 
(A) Paragraph (3) of section 302(d) of such Act is 
amended by adding at the end the following new 
subparagraphs: 
"(D) SPECIAL RULE FOR REQUIRED CHANGES IN ACTUAR-
IAL ASSUMPTIONS.— 
"(i) IN GENERAL.—The unfunded 
old Uability 
Eunount with respect to any plan for any plan year 
shall be increaseci by the amount necessary to amortize 
the amount of additional unfunded old liability under 
the plan in equal annual installments over a period 
of 12 plan years (beginning with the first plan year 
beginning after December 31, 1994). 
"(ii) ADDITIONAL UNFUNDED OLD LIABILITY.—For 
purposes of clause (i), the term 'additional unfunded 
old liabihty' means the amotmt (if any) by which— 
"(I) the current habihty of the plan as of the 
beginning of the first plan year beginning after 
December 31, 1994, valued using the assumptions 
required by paragraph (7)(C) as in effect for plan 
years beginmng after December 31, 1994, exceeds 
"(II) the current habihty of the plan as of 
the beginning of such firet plan year, valued using 
the same assumptions used under subclause (1) 
(other than the assumptions required by para-
graph (7)(C)), usinjg the prior interest rate, and 
using such mortality assumptions as were used 
to determine current habihty for the first plan 
year beginning after December 31, 1992. 
(iii) PRIOR INTEREST RATE.—For purposes of clause 
(ii), the term *prior interest rate' means the rate of 
interest that is the same percentage of the weighted 
average under subsection (b)(5)(B)Tii)(I) for the first 
plan year beginning after December 31, 1994, as the 
rate of interest used by the plan to determine current 
habihty for the first plan year beginning after Decem-
ber 31, 1992, is of me weighted average under sub-
section (b)(5)(B)(u)(I) for such first plan year beginning 
after December 31,1992. 
"(E) OPTIONAL RULE FOR ADDITIONAL UNFUNDED OLD 
LIABILITY.— 
"(i) IN GENERAL.—If an employer makes an election 
under clause (u), the additional unfunded old habihty 
for purposes of subparagraph (D) shall be the amount 
(if any) Dy which— 
"(I) the unfunded current habihty of the plan 
as of the beginning of the first plan year beginning 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5027 
after December 31, 1994, valued using the assump-
tions required by paragraph (7XC) as in efifect 
for plan years beginning after December 31, 1994, 
exceeds 
"(II) the unamortized portion of the unftmded 
old Uabihty under the plan as of the beginning 
of tlie first plan year beginning after December 
31,1994. 
"(ii) ELECTION.— 
"(I) An employer may irrevocably elect to apply 
the provisions of this subparagraph as of the begin-
ning of the first plan yesir beginning after Decem-
ber 31,1994. 
"(II) If an election is made under this clause, 
the increase imder paragraph (1) for any plan 
year beginning after December 31, 1994, and 
before January 1, 2002, to which this subsection 
appHes (without regard to this subclause) shall 
not be less than the increase that would be 
required under paragraph (1) if the provisions of 
this title as in effect for the last plan year begin-
ning before January 1, 1995, had remained in 
effect." 
(B) Clause (i) of section 302(d)(4)(B) of such Act is 
29 USC 1082. 
amended by inserting ", the unamortized portion of the 
additional unftmded old liabihty," after "old HabOity". 
(5) APPLICABLE PERCE^fTAGE FOR DETERMINING UNFUNDED 
NEW LIABILITY AMOUNT.—Subparagraph (C) of section 302(d)(4) 
of such Act is amended— 
(A) by sitriking ".25" and inserting ".40", and 
(B) by striking "35" and inserting "60". 
(6) UNPREDICTABLE CONTINGENT EVENT AMOUNT.— 
(A) Subparagraph (A) of section 302(dX5) of such Act 
is amended— 
(i) by striking "greater or and inserting "greatest 
of beiFore clause (i); 
(ii) by striking "or" at the end of clause (i); 
(iii) Dy striking the period at the end of clause 
(ii) and Inserting ", or"; ana 
(iv) by adding after clause (ii) the following new 
clause: 
"(iii) the additional amount that would be deter-
mined imder paragraph (4)(A) if the unpredictable 
contingent event benefit liabilities were included in 
unftinded new liability notwithstanding paragraph 
(4)(BXii)." 
(B) Paragraph (5) of section 302(d) of such Act is 
amended by adding at the end the following new 
subparagrapn: 
"(E) LIMITATION.—The present value of the amounts 
described in subparagraph (A) with respect to any one 
event shall not exceed the unpredictable contingent event 
benefit Uabijlities attributable to tiiat event" 
(C) Clause (ii) of section 302(eX4XD) of such Act is 
amended— 
(i) by striking "greater of and inserting "greatest 
of before subclause (I); 
108 STAT. 5028 
PUBLIC LAW 103-465—DEC. 8, 1994 
(ii) by striking "or^ at the end of subclause (I); 
(iii) by striking tiie period at the end of subclause 
(II) and inserting ", or"; and 
(iv) by adding after subclause (II) the following 
new clause: 
"(III) 25 percent of the amount determined 
under subsection (d)(5)(A)(iii) for the plan year." 
(7) REQUIRED INTEREST RATE AND MORTAUTY ASSUMPTIONS 
FOR DETERMINING CURRENT LIABILITY.— 
(A) IN GENERAL.—Subparagraph (C) of section 302(d)(7) 
29 use 1082. 
of such Act is amended to read as foUows: 
"(C) INTEREST RATE AND MORTALITY ASSUMPTIONS 
Effective date. 
USED.—Effective for plan years beginning after December 
31,1994— 
"(i) INTEREST RATE.— 
"(I) IN GENERAL.—The rate of interest used 
to determine current UabiHty \mder this subsection 
shall be the rate of interest used under subsection 
(b)(5), except that the highest rate in the permis-
sible range under subparagraph (B)(ii) thereof 
shall not exceed the specified percentage under 
subclause (II) of the weighted average referred 
to in such subparagraph. 
"(II) SPECIFIED PERCENTAGE.—For purposes of 
subclause (I), the specified percentage shall be 
determined as follows: 
"In the case of 
plan years beginning 
The specified 
in calendar year: 
percentage is: 
1995 
109 
1996 
108 
1997 
107 
1998 
106 
1999 and thereafter 
106. 
"(ii) MORTALITY TABLES.— 
"(I) COMMISSIONERS' STANDARD TABLE.—^In the 
case of plan years beginning before the first plan 
year to which the fS«t tables prescribed under 
subclause (II) apply, the mortality table used in 
determining current liability under this subsection 
shall be the table prescribed by the Secretsuy of 
the Treasury which is based on the prevailing 
commissioners' standard table (described in section 
807(d)(5XA) of the Internal Revenue Code of 1986) 
used to determine reserves for group annuity con-
tracts issued on January 1, 1993. 
"(II) SECRETARIAL AUTHORITY.—The Secretary 
of the Treasury may by regulation prescribe for 
plan years beginning after December 31, 1999, 
mortality tables to be used in determining current 
liabihty under this subsection. Such tables shall 
be based upon the actual experience of pension 
plans and projected trends in such experience. In 
prescribing such tables, the Secretary of the Treas-
ury shall take into account results of available 
independent studies of mortality of individuals cov-
ered by pension plans. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5029 
"(III) PERIODIC REVIEW.—The Secretary of the Regulations. 
Treasury shall periodically (at least every 5 years) 
review any tables ia effect under this subsection 
and shall, to the extent the Secretary determines 
necessary, by regulation update the tables to 
reflect the actual experience of pension plans and 
projected trends in such experience, 
"(iii) SEPARATE MORTALITY TABLES FOR THE DIS-
ABLED.—Notwithstanding clause (ii)— 
"(I) IN GENERAL.—In the case of plan years 
beginning after December 31, 1995, the Secretary 
of the Treasury shall establish mortaUty tables 
which may be used (in Ueu of the tables under 
clause (ii)) to determine current liability under 
this subsection for individuals who are entitled 
to benefits under the plan on accoimt of disability. 
Such Secretary shall estabhsh separate tables for 
individuals whose disabihties occur in plan years 
beginning before January 1, 1995, and for individ-
uals whose disabihties occur in plan years begin-
ning on or after such date. 
"(II) 
SPECIAL RULE FOR DISABILITIES OCCUR-
RING AFTER 1994.—In the case of disabihties occur-
ring in plan years beginning after December 31, 
1994, the tables under subclause (I) shall apply 
only with respect to individuals described in such 
subclause who are disabled within the meaning 
of title II of the Social Security Act and the regula-
tions thereunder. 
"(Ill) PLAN YEARS BEGINNING IN 1995.—In the 
case of any plan year beginning in 1995, a plsin 
may use its own mortahty assumptions for individ-
uals who are entitled to benefits under the plan 
on account of disabihty." 
(B) AMORTIZATION OF UNFUNDED MORTALITY INCREASE 
AMOUNT.— 
(i) IN GENERAL.—Paragraph (2) of section 302(d) 
of such Act, as amended by paragraph (3), is amended 
29 use 1082. 
by striking "plus" at the end of subparagraph (B), 
by striking the period at the end of subparagraph 
(C) and inserting ", and", and by adding at the end 
the following new subparagraph: 
"(D) the aggregate of the uniunded mortahty increase 
amounts." 
(ii) 
UNFUNDED MORTALITY INCREASE AMOUNT.— 
Section 302(d) of such Act, as amended by paragraph 
(1), is amended by adding at the end the following 
new paragraph: 
"(10) UNFUNDED MORTALITY INCREASE AMOUNT.— 
"(A) IN GENERAL.—^The imfimded mortality increase 
amount with respect to each unfunded mortahty increase 
is the amount necessary to amortize such increase in equal 
annual installments over a period of 10 plan years (begin-
ning with the first plan year for which a plan uses any 
new mortahty table issued under paragraph (7)(C)(ii)(n) 
or (III)). 
108 STAT. 5030 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(B) UNFUNDED MORTALITY INCREASE.—For purposes 
of subparagraph (A), the term Sinfiinded mortaUty increase' 
means an amount equal to the excess of— 
**(i) the current UabiUty of the plan for the first 
plan year for which a plan uses any new mortality 
table issued under paragraph (7)(C)(ii)(II) or (III), over 
**(ii) the current habihty of the plan for such plan 
year which would have been determined if the mortal-
ity table in effect for the preceding plan year had 
been used." 
(iii) CONFORMING AMENDMENT.—Clause (i) of sec-
tion 302(d)(4)(B) of such Act, as amended by paragraph 
(4)(B), is amended by inserting "the unamortized por-
tion of each unfunded mortaUty increase," after "addi-
tional imfunded old Hability,". 
(8) TRANSITION RULE.—Section 302(d) of such Act, as 
amended by paragraph (7), is amended by adding at the end 
the following new paragraph: 
"(11) PHASE-IN OF INCREASES IN FUNDING REQUIRED BY 
R E T I R E M E N T PROTECTION A C T O F 1994.— 
"(A) IN GENERAL.—For any apphcable plan year, at 
the election of the employer, the increase under paragraph 
(1) shall not exceed the greater of— 
"(i) the increase that would be required under 
paragraph (1) if the provisions of this titie as in effect 
for plan years beginning before January 1, 1995, had 
remained in effect, or 
"(ii) the amoimt which, after taking into account 
charges (other than the additional charge under this 
subsection) and credits under subsection (b), is nec-
essary to increase the funded current liabiHty percent-
age (taking into account the expected 
increase 
in current UabiUty due to benefits accruing during 
the plan year) for the appUcable plan year to a percent-
age equal to the sum of the initial funded ciurent 
UabiUty percentage of the plan plus the appUcable 
niunber of percentage points for such appUcable plan 
year. 
"(B) APPUCABLE NUMBER OF PERCENTAGE POINTS.— 
"(i) INITIAL FUNDED CURRENT LIABILITY PERCENT-
AGE OF 75 PERCENT OR LESS.—Except as provided in 
clause (u), for plans with an initial fiinded current 
UabiUty percentage of 75 percent or less, the appUcable 
number of percentage points for the appUcable plan 
year is: 
"In the case 
The applicable 
of applicable 
number of 
E
lan years 
percentage 
eginning in: 
points is: 
1995 
3 
1996 
6 
1997 
9 
1998 
12 
1999 
15 
2000 
19 
2001 
24. 
"(ii) OTHER CASES.—In the case of a plan to which 
this clause appUes, the appUcable number of percent-
'••^iritl* t-
PUBLIC LAW 103-465—DEC. 8,1994 
108 STAT. 5031 
age points for any such applicable plan year is the 
sum o
f
— 
"(I) 2 percentage points; 
"(II) the apphcable number of percentage 
points (if any) under this clause for the preceding 
apphcable plan year, 
"(III) the product of .10 multiplied by the 
excess (if any) of (a) 85 percentage points over 
(b) the sum of the initial funded current liabihty 
percentage and the number determined under 
subclause (II); 
"(IV) for apphcable plan years beginning in 
2000,1 percentage point; and 
"(V) for apphcable plan years beginning in 
2001, 2 percentage points, 
"(iii) PLANS TO WHICH CLAUSE (ii) APPLIES.— 
"(I) IN GENERAL.—Clause (ii) shall apply to 
a plan for an apphcable plan year if the initial 
funded current liability percentage of such plan 
is more than 75 percent 
"(II) PLANS INITLIVLLY UNDER CLAUSE (i).—In 
the case of a plan which (but for this subclause) 
has an initial funded current habihty percentage 
of 75 percent or less, clause (ii) (and not clause 
(i)) shall apply to such plan with respect to 
apphcable plan years beginning after the first 
apphcable plan yesir for which the sum of the 
initial funded ciurent habUity percentage and the 
apphcable number of percentage points (deter-
mined under clause (i)) exceeds 75 percent For 
purposes of applying clause (ii) to such a plan, 
the initial funded current liability percentage of 
such plan shall be treated as being the sum 
referred to in the preceding sentence. 
"(C) DEFINITIONS.—^For purposes of this paragraph— 
"(i) The term 'applicable plstn year* means a plEui 
year beginning after December 31, 1994, and before 
January 1, 2002. 
"(ii) The term Initial funded current liabihty 
percentage' means the funded current habihty percent-
age as of the first day of the first plan year beginning 
after December 31,1994." 
(9) LIQUIDITY REQUIREMENT.— 
(A) IN GENERAL.—Section 302(e) of such Act is amended 29 use 1082. 
by redesignating paragraph (5) as paragraph (6) and by 
inserting after paragraph (4) the following new paragraph: 
"(5) LIQUIDITY REQUIREMENT.— 
"(A) IN GENERAL.—A plan to which this paragraph 
apphes shall be treated as failing to pay the fml amount 
of any required installment to the extent that the value 
of the liquid assets paid in such installment is less than 
the hquidity shortfall (whether or not such hquidity short-
fall exceeds the amoimt of such installment required to 
be paid but for this peiragraph). 
"(B) PLANS TO WHICH PARAGRAPH APPUES.—^This para-
graph shall apply to a defined benefit plan (other th£ui 
108 STAT. 5032 
PUBLIC LAW 103-465—DEC. 8, 1994 
a multiemployer plan or a plan described in subsection 
(d)(6)(A)) which— 
"(i) is required to pay installments under this sub-
section for a plan year, and 
"(ii) has a liquidity shortfall for any quarter during 
such plan year. 
"(C) PERIOD OF UNDERPAYMENT.—For purposes of para-
graph (1), any portion of an installment that is treated 
as not paid uncier subpsiragraph (A) shall continue to be 
treated as unpaid until the close of the quarter in which 
the due date for such installment occurs. 
"(D) LIMITATION ON INCREASE.—If the amount of 
any 
required installment is increased by reason of subpara-
graph (A), in no event shall such increase exceed the 
amount which, when added to prior installments for the 
plan year, is necessary to increase the funded current 
liabUity percentage (taking into account the expected 
increase in cturent Uability due to benefits accruing during 
the plan year) to 100 percent. 
"(E) DEFINITIONS.—For purposes of this paragraph— 
"(i) LIQUIDITY SHORTFALL.—The term 'Uquiditjr 
shortfall' means, with respect to any required install-
ment, an amount equal to the excess (as of the last 
day of the quarter for which such installment is made) 
of the base amoimt with respect to such quarter over 
the value (as of such last day) of the plan's liquid 
assets. 
"(ii) BASE AMOUNT.— 
"(I) IN GENERAL.—The term *base amoimt' 
means, with respect to any quarter, an amount 
equal to 3 times the sum of the adjusted disburse-
ments from the plan for the 12 months ending 
on the last day of such quarter. 
"(II) SPECIAL RULE.—If the amount determined 
imder clause (i) exceeds an amoimt equal to 2 
times the sum of the adjusted disbursements from 
the plan for the 36 months ending on the last 
day of the quarter and an enrolled actuary certifies 
to the satisfaction of tlie Secretary of the Treasury 
that such excess is the result of nonrecurring cir-
cumstances, the bEise amount with respect to such 
quarter shall be determined without regard to 
amounts 
related 
to 
those 
nonrecurring 
cir-
cumstances. 
"(iii) DISBURSEMENTS FROM THE PLAN.—The term 
'disbursements from the plan' means all disbursements 
from the trust, including purchases of annuities, pay-
ments of single sums and other benefits, and adminis-
trative expenses. 
"(iv) 
ADJUSTED 
DISBURSEMENTS.—The 
term 
'adjusted disbursements' means disbursements from 
the plan reduced by the product of— 
"(I) the plan's funded current UabiUty percent-
age (as defined in subsection (d)(8)) for me plan 
year, and 
"(II) the sum of the purchases of annuities, 
payments of single sums, and such other disburse-
- i S ^ > ? " / 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5033 
ments as the Secretary of the Treasury shall pro-
vide in regulations. 
"(v) LIQUID ASSETS.—The term liquid 
assets' 
means cash, marketable securities and such other 
assets as specified by the Secretary of the Treasury 
in regulations. 
•^vi) QUARTER.—^The term 'qusirter' means, with 
respect to any required installment, the 3-month period 
preceding the month in which the due date for such 
installment occurs. 
"(F) REGULATIONS.—The Secretary of the Treasury may 
prescribe such regulations as are necessary to carry out 
this paragraph." 
(B) LIMITATION ON DISTRIBUTIONS OTHER THAN UFE 
ANNUITIES PAID BY THE PLAN.— 
(i) Section 206 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1056) is amended by 
adding at the end the following new subsection: 
"(e) LIMITATION ON DISTRIBUTIONS OTHER THAN LIFE ANNUITIES 
PAID BY THE PLAN.— 
"(1) IN GENERAL.—Notwithstanding any other provision of 
this part, the fiduciary of a pension plan that is subject to 
the additional fiinding requirements of section 302(d) shall 
not permit a prohibited payment to be made fix)m a plan 
during a period in which such plan has a Hquidity shortfall 
(as defined in section 302(6)(5)). 
"(2) PROHIBITED PAYMENT.—For purposes of paragraph (1), 
the term prohibited payment' means— 
"(A) any payment, in excess of the monthly amount 
paid under a single Hfe annuity (plus any social security 
supplements described in the last sentence of section 
204(b)(1)(G)), to a participsint or beneficiary whose annuity 
starting date (as defined in section 205(h)(2)), that occurs 
during the period referred to in paragraph (1), 
"(B) any payment for the purcnase of an irrevocable 
commitment from an insurer to pay benefits, and 
"(C) any other payment specified by the Secretary of 
the Treasury by regulations. 
"(3) PERIOD OF SHORTFALL.—For purposes of this sub-
section, a plan has a hquidity shortfall during the period that 
there is an underpayment of an installment under section 302(e) 
by reason of paragraph (5)(A) thereof 
"(4) COORDINATION WITII OTHER PROVISIONS.—CompUance 
with this subsection shall not constitute a violation of any 
other provision of this Act" 
(ii) Section 502 of such Act is amended by adding 
29 use 1132. 
at the end a new subsection (m) to read as follows: 
"(m) In the case of a distribution to a pension plan participant 
or beneficiary in violation of section 206(e) by a plan fiduciary, 
the Secretary shall assess a penalty against such fiduciary in an 
amount equal to the value oi the distribution. Such penalty shall 
not exceed $10,000 for each such distribution." 
(10) 
AMENDMENT 
TO 
DEFINITION 
OF 
FULL-FUNDING 
UMITATION.— 
(A) Subparagraph (A) of section 302(c)(7) of such Act 
29 USC 1082. 
is amended oy inserting "(including the expected increase 
108 STAT. 5034 
PUBLIC LAW 103-465—DEC. 8, 1994 
in current liability due to benefits accruing during the 
plan year)" after "current liability^ in clause (i). 
29 use 1082. 
(B) Section 302(cX7) of such Act is amended by adding 
at the end the following new subparagraph: 
*(E) MINIMUM AMOUNT.— 
"(i) IN GENERAL.—In no event shall the full-funding 
limitation determined under subparagraph (A) be less 
than the excess (if any) o
f
— 
"(I) 90 percent of the current liability of the 
E
lan (including the expected increase in current 
ability due to benefits accruing during the plan 
year), over 
"(II) the value of the plan's assets determined 
under paragraph (2). 
"(ii) CURRENT LIABIUTY; ASSETS.—For purposes of 
clause (i)— 
"(I) the term 'current liability' has the meaning 
given such term by subsection (d)(7) (without 
regard to subparagraph (D) thereof), and 
"(II) assets shall not be reduced by any credit 
balance in the fiinding standard accoimt." 
(C) Subparagraph (B) of section 302(c)(7) of such Act 
is amended to read as follows: 
"(B) CURRENT LIABILITY.—For purposes of subpara-
graph (D) and subclause (I) of subparagraph (A)(i), the 
term 'current Uabili^ has the meaning given such term 
by subsection (d)(7) (without regard to subparagraphs (C) 
and (D) thereof) and using the rate of interest used under 
subsection (b)(5XB).'' 
(11) DEFINITION OF CONTRIBUTING SPONSOR.—Paragraph 
(13) of section 4001(a) o^' such Act (29 U.S.C. 1301(a)(13)) is 
amended by striking "means a person—" and aU that follows 
£Uid inserting "means a person described in section 302(c)(ll)(A) 
of this Act (without regard to section 302(c)(ll)(B) of this Act) 
or section 412(c)(ll)(A) of the Internal Revenue Code of 1986 
(without regard to section 412(cXllXB) of such Code)." 
29 use 1056 
(b) EFFECTIVE DATES.— 
note. 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to plan yesirs 
beginning afi:er December 31,1994. 
(2) CONTRIBUTING SPONSOR.—The amendment made by 
subsection (aXll) shall be effective as if included in the Pension 
Protection Act^ 
SEC. 762. UMTTATION 
ON 
CHANGES 
IN 
CURRENT 
LIABILITY 
ASSUMPTIONS. 
(a) IN GENERAL.—Paragraph (5) of section 302(c) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1082(c)(5)) is amended— 
(1) by striking "If the fiinding method" and inserting the 
following: 
"(A) IN GENERAL.—If 
the fiinding method", and 
(2) by adding at the end the following new subparagraph: 
"(B) APPROVAL REQUIRED FOR CERTAIN CHANGES IN 
ASSUMPTIONS BY CERTAIN SINGLE-EMPLOYER PLANS SUBJECT 
TO ADDITIONAL FUNDING REQUIREMENT.— 
-'*^-/.-->r T4f^^j^:^^ ,-•,%.--> 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5035 
**(i) IN GENERAL.—^No actuarial assumption (other 
than tlie assumptions described in subsection (d)(7)(C)) 
used to determine the current liability for a plan to 
which this subparagraph applies may be changed with-
out the approval of the Secretary of the Treasury. 
"(ii) PLAJI^S TO WHICH SUBPARAGRAPH APPLIES.— 
This subparagraph shall apply to a plan only i
f
— 
"(I) the plan is a defined benefit plan (other 
than a multiemployer plan) to which title IV 
appUes; 
"(II) the aggregate unfunded vested benefits 
as of the close of the preceding plan year (sis deter-
mined under section 4006(a)(3)(E)(iii)) of such plan 
and all other plans maintained by the contributing 
sponsors (as defined in section 4001(a)(13)) and 
members of such sponsors' controlled groups (as 
defined in section 4001(a)(14)) which are covered 
by titie rV (disregarding plans with no unfunded 
vested benefits) exceed $50,000,000; and 
"(III) the change in assumptions (determined 
after taking into account any changes in interest 
rate and mortality table) results in a decrease 
in the unfunded current HabiHty of the plan for 
the current plan year that exceeds $50,000,000, 
or that (jxceeds $5,000,000 and that is 5 percent 
or more of the current Uability of the plan before 
such change." 
(b) EFFECTIVE DATE.— 
29 use io82 
(1) IN GENERAL.—^The amendment made by this section ^°^-
shall apply to changes in assimiptions for plan years beginning 
after October 28, 1993. 
(2) CERTAIN C
H
A
^
J
G
E
S CEASE TO BE EFFECTIVE.—In the case 
of changes in assumptions for plan years beginning afl^r 
December 31, 1992, and on or before October 28, 1993, such 
changes shall cease to be effective for plan years beginning 
after December 31,1994, i
f
— 
(A) such change would have required the approval 
of the Secretary of the Treasury had such amendment 
applied to such change, and 
(B) such change is not so approved. 
SEC. 763. ANTICIPATION OF BARGAINED BENEFIT INCREASES. 
(a) IN GENERAL.—Section 302(c) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1082(c)) is amended by 
adding at the end the following new paragraph: 
"(12) ANTICIPATION OF BENEFIT INCREASES EFFECTIVE IN 
THE FUTURE.—In determining projected benefits, the fiinding 
method of a collectively bargained plan described in section 
413(a) of the Internal Revenue Code of 1986 (otiier than a 
multiemployer plan) shall anticipate benefit increases sched-
uled to take effect during the term of the collective bargaining 
agreement appHcable to the plan." 
(b) EFFECTIVE DATE,—The amendment made by this section 29 use 1082 
shall apply to plan years beginning after December 31, 1994 with 
"°^-
respect to collective bargaining agreements in effect on or after 
January 1, 1995. 
108 STAT. 5036 
PUBLIC LAW 103-465—DEC. 8, 1994 
SEC. 764. MODIFICATION 
OF 
QUARTE31LY 
CONTRIBUTION 
REQUIREMENT. 
(a) IN GENERAL.—Paragraph (1) of section 302(e) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1082(e)) is amended— 
(1) by inserting Vhich has a funded current liability 
percentage (as defined in subsection (d)(8)) for the preceding 
plan year of less than 100 percent" before ^ails", and 
(2) by striking "any plan year^ and inserting "the plan 
year". 
29 use 1082 
(b) EFFECTIVE DATE.—The amendment made by this section 
"°*®- 
shall apply to plan years beginning after the date of enactment 
of this Act. 
Subpart C—Other Funding Provisions 
SEC. 766. PROHIBITION ON BENEFIT INCREASES WHERE PLAN SPON-
SOR IS IN BANKRUPTCY. 
(a) AMENDMENT TO THE EMPLOYEE RETIREMENT INCOME SECU-
RITY ACT OF 1974.—Section 204 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1054) is amended by redesignating 
subsection (i) as (j) and inserting after subsection (h) the following 
new subsection: 
"(i)(l) In the case of a plan described in paragraph (3) which 
is maintained by an employer that is a debtor in a case under 
titie 11, United States Code, or similar Federal or State law, no 
amendment of the plan which increases the UabiUties of the plan 
by reason of— 
"(A) any iacrease in benefits, 
"(B) any change in the accrual of benefits, or 
"(C) any change in the rate at which benefits become non-
forfeitable imder the plan, 
with respect to employees of the debtor, shaU be effective prior 
to the effective date of such employer's plan of reorganization. 
"(2) Paragraph (1) shall not apply to any plan amendment 
that— 
"(A) the Secretary of the Treasury determines to be reason-
able and that proviaes for only de minimis increases in the 
liabOities of the plan with respect to employees of the debtor, 
"(B) only repeals an amendment described in section 
302(c)(8), 
"(C) is required as a condition of qualification under part 
I of subchapter D of chapter 1 of the Internal Revenue Code 
of 1986, or 
"(D) was adopted prior to, or pursuant to a collective 
bargsiining agreement entered into prior to, the date on which 
the employer became a debtor in a case under titie 11, United 
States Code, or similar Federal or State law. 
"(3) This subsection shall apply only to plans (other than midti-
employer plans) covered under section 4021 of this Act for which 
the funded current UabiUty percentage (within the meaning of sec-
tion 302(d)(8) of this Act) is less than 100 percent after taking 
into account the effect of the amendment. 
"(4) For purposes of this subsection, the term 'employer' has 
the meaning set fortii in section 302(cXll)(A), without regard to 
section 302(c)(ll)(B)." 
---s^^i^-^-
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5037 
(b) AMENDMENT TO INTERNAL REVENUE CODE OF 1986.—Section 
401(a), as amended by section 751 of tiiis Act, is further amended 
by adding at the end the following new paragraph: 
"(33) PROHIBITION ON BENEFIT INCREASES WHILE SPONSOR 
IS IN BANKRUPTCY.— 
"(A) IN GENERAL.—^A trust which is part of a plan 
to which this paragraph appUes shall not constitute a quah-
fied trust under this section if an amendment to such 
plan is adopted while the employer is a debtor in a case 
under titie 11, United States Code, or similar Federal 
or State law, if such amendment increases liabilities of 
the plan by reason of— 
"(i) any increase in benefits, 
"(ii) any change in the accrual of benefits, or 
**(iii) any change in tiie rate at which benefits 
become nonforfeitable imder the plan, 
with respect to employees of the debtor, and such amend-
ment is effective prior to the effective date of such employ-
er's plan of reorgEuoization. 
"(B) EXCEPTIONS.—This paragraph shall not apply to 
any plan amendment if— 
"(i) the plan, were such amendment to tsike effect, 
would have a funded ciurent UabiUty percentage (as 
defined in section 412(1)(8)) of 100 percent or more, 
"(ii) the Secretary determines that such amend-
ment is reasonable and provides for only de minimis 
increases in the UabiUties of the plan with respect 
to employees of the debtor, 
"(iii) such smiendment only repeals an amendment 
described in subsection 412(c)(8), or 
"(iv) such amendment is required as a condition 
of qualification under this part 
"(C) PLANS TO WHICH THIS PARAGRAPH APPLIES.—This 
paragraph shall apply only to plans (other than multiem-
ployer plans) covered under section 4021 of the Employee 
Retirement Income Security Act of 1974. 
"(D) EMPLOYER.—For purposes of this paragraph, the 
term 'employer' means the employer referred to in section 
412(c)(ll) (without regard to subparagraph (B) thereof)." 
(c) EFFECTIVE DATE OF PLAN AMENDMENT.--Section 4022 of 
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1322) is amended by inserting at the end the following new sub-
section: 
"(f) For purposes of this section, the effective date of a plan 
amendment described in section 204(i)(l) shall be the effective 
date of the plan of reorganization of the employer described in 
section 204(i)(l) or, if later, the effective date stated in such amend-
ment" 
(d) EFFECTIVE DATE.—The amendments made by this section 26 use 40i note. 
shall apply to plan amendments adopted on or after the date 
of enactment of tiiis Act 
SEC. 767. SINGLE SUM DISTRIBUTIONS. 
(a) AMENDMENTS TO INTERNAL REVENUE CODE OF 1986 RELAT-
ING TO MINIMUM BENEFITS.— 
108 STAT. 5038 
PUBLIC LAW 103-465—DEC. 8, 1994 
(1) DETERMINATION OF PRESENT VALUE FOR PURPOSES OF 
RESTRICTIONS ON MANDATORY DISTRIBUTIONS.—Subparagraph 
(B) of section 411(a)(ll) is amended to read as follows: 
"(B) DETERMINATION OF PRESENT VALUE.—For purposes 
of subparagraph (A), the present value shall be calculated 
in accordance with section 417(6X3)." 
(2) DETERMINATION OF PRESENT VALUE FOR PURPOSES OF 
26 use 417. 
RESTRICTIONS ON CASH-OUTS.—Paragraph (3) of section 417(e) 
is amended to read as follows: 
"(3) DETERMINATION OF PRESENT VALUE.— 
"(A) IN GENERAL.— 
"(i) 
PRESENT VALUE.—Except as 
provided 
in 
subparagraph (B), for purposes of paragraphs (1) and 
(2), the present value shall not be less than the present 
vsJue calculated by using the appUcable mortahty table 
and the appUcable interest rate. 
"(ii) DEFINITIONS.—For piuposes of clause (i)— 
"(I) APPLICABLE MORTALITY TABLE.—The term 
'appUcable mortaUty table' means the table pre-
scribed by the Secretary. Such table shaU be based 
on the prevaiUng commissioners' standard table 
(described in section 807(d)(5)(A)) used to deter-
mine reserves for group annuity contracts issued 
on the date as of which present value is being 
determined (without regard to any other subpara-
graph of section 807(d)(5)). 
"(II) APPLICABLE INTEREST RATE.—The term 
'appUcable interest rate' means the annual rate 
of interest on 30-year Treasury securities for the 
month before the date of distribution or such other 
time as the Secretary may by regulations pre-
scribe. 
"(B) EXCEPTION.—In the case of a distribution from 
a plan that was adopted and in effect before the date 
of the enactment of the Retirement Protection Act of 1994, 
the present value of any distribution made before the ear-
Uer of— 
"(i) the later of the date a plan amendment apply-
ing subparagraph (A) is adopted or made effective, 
or 
"(ii) the first day of the first plan year beginning 
after December 31, 1999, 
shaU be calculated, for purposes of paragraphs (1) and 
(2), using the interest rate aetermined under the regula-
tions of the Pension Benefit Gusiranty Corporation for 
determining the present value of a lump simi distribution 
on plan termination that were in effect on September 1, 
1993, and using the provisions of the plan as in effect 
on the day beiore such date of enactment; but only if 
such provisions of the plan met the requirements of section 
417(eX3) as in effect on the day before such date of enact-
ment." 
(b) AMENDMENTS TO INTERNAL REVENUE CODE OF 1986 RELAT-
ING TO MAXIMUM BENEFITS.—Subparagraph (E) of section 415(bX2) 
is amended— 
(1) by redesignating clauses (ii) and (iii) as clauses (iii) 
and (iv), respectively, 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5039 
(2) by striking clause (i) and inserting the following new 
clauses: 
"(i) Except as provided in clause (ii), for purposes 
of adjusting any benefit or limitation under subpara-
graph (B) or (C), the interest rate assumption shall 
not be less than the greater of 5 percent or the rate 
specified in tlie plan. 
"(ii) For purposes of adjusting the benefit or limita-
tion of any form of benefit subject to section 417(e)(3), 
the applicable interest rate (as defined in section 
417(e)(3)) shall be substituted for '5 percent* in clause 
(i).", and 
(3) by adding at the end the following new clause: 
"(v) For pu]-poses of adjusting any benefit or limita-
tion under subparagraph (B), (C), or (D), the mortsdity 
table used shall be the table prescribed by the Sec-
retary. Such table shall be based on the prevailing 
commissioners' standsird table (described in section 
807(d)(5)(A)) used to determine reserves for group 
annuity contracts issued on the date the adjustment 
is being made (without regard to any other subp£u^-
graph of section 807(d)(5)).'' 
(c) AMENDMENTS TO EMPLOYEE RETIREMENT INCOME SECURITY 
ACT OF 1974.— 
(1) DETERMINATION OF PRESENT VALUE FOR PURPOSES OF 
RESTRICTIONS ON MANDATORY DISTRIBUTIONS.—Section 203(e)(2) 
of the Employee Retiresment Income Security Act of 1974 (29 
U.S.C. 1053(e)(2)) is amended to read as follows: 
"(2) For purposes of paragraph (1), the present value shall 
be calculated in accordance with section 205(g)(3).'' 
(2) DETERMINATION OF PRESENT VALUE FOR PURPOSES OF 
RESTRICTIONS ON CASH-OUTS.—Section 205(g)(3) of such Act (29 
U.S.C. 1055(g)(3)) is amended to read as follows: 
"(3) 
DETERMINATION 
OF 
PRESENT 
VALUE.— 
"(A) 
IN 
GENERAL.— 
"(i) 
PRESENT VALUE.—Except as 
provided 
in 
subparagraph (B), for purposes of paragraphs (1) and 
(2), the present value shall not be less than the present 
value calculated by using the applicable mortality table 
and the applicable interest rate. 
"(ii) DEFINITIONS.—For purposes of clause (i)— 
"(I) APPLICABLE MORTALITY TABLE.—The term 
'applicable mortality table' means the table pre-
scribed by the Secretary of the Treasury. Such 
table shall be based on the prevaiUng commis-
sioners' standard 
table (described in section 
807(d)(5)(A) of tlie Internal Revenue Code of 1986) 
used to determine reserves for group annuity con-
tracts issued on the date as of wnich present value 
is being determined (without regard to any other 
subparagraph of section 807(d)(5) of such Code). 
"(II) APPLICABLE INTEREST RATE.—The term 
'appUcable interest rate' means the annual rate 
of interest on 30-year Treasury securities for the 
month before the date of distribution or such other 
time as the Secretary of the Treasury may by 
regulations prescribe. 
108 STAT. 5040 
PUBLIC LAW 103-465—DEC. 8, 1994 
"(B) EXCEPTION.—^In the case of a distribution from 
a plan that was adopted and in effect prior to the date 
of the enactment of the Retirement Protection Act of 1994, 
the present value of any distribution made before the ear-
Uer o
f
— 
**(i) the later of when a plan amendment applying 
subparagraph (A) is adopted or made effective, or 
"(ii) the first day of the first plan year beginning 
after December 31, 1999, 
shall be calculated, for purposes of paragraphs (1) and 
(2), using the interest rate determined under the regula-
tions of the Pension Benefit Guaranty Corporation for 
determining the present value of a lump sum distribution 
on plan termination that were in effect on September 1, 
1993, and using the provisions of the plan as in effect 
on tne day before such date of enactment; but only if 
such provisions of the plan met the requirements of section 
205(gX3) as in effect on the day before such date of 
enactment." 
26 u s e 411 note. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by this section 
shall apply to plan years and limitation years beginning after 
December 31, 1994; except that an employer may elect to treat 
the amendments made T
b
y this section as being effective on 
or after the date of the enactment of this Act. 
(2) No R
E
D
U
C
T
I
O
N IN A
C
C
R
U
E
D BENEFITS.—A participant's 
accrued benefit shaU not be considered to be reduced in viola-
tion of section 411(d)(6) of the Internal Revenue Code of 1986 
or section 204(g) of the Employee Retirement Income Security 
Act of 1974 merely because (A) the benefit is determined in 
accordance with section 417(e)(3)(A) of such Code, as amended 
by this Act, or section 205(g)(3) of the Employee Retirement 
Income Security Act of 1974, as amended by this Act, or (B) 
the plan appUes section 415(b)(2)(E) of such Code, as amended 
by this Act 
(3) SECTION 4 IS.— 
(A) No R
E
D
U
C
T
I
O
N REQUIRED.—An accrued benefit shall 
not be required to be reduced below the accrued benefit 
as of the last day of the last plan year beginning before 
January 1, 1995, merely because of the amendments made 
by subsection (b). 
(B) TIMING OF PLAN AMENDMENT.—A plan that operates 
in accordance with the amendments made by subsection 
(b) shall not be treated as faihng to satisfy section 401(a) 
of the Internal Revenue Code of 1986 or as not being 
operated in accordance with the provisions of the plan 
until such date as the Secretary of the Treasiuy provides 
merely because the plein has not been amended to include 
the amendments made by subsection (b). 
SEC. 768, ADJUSTMENTS TO LIEN FOR MISSED MINIMUM FUNDING 
CONTRIBUTIONS. 
(a) AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.— 
(1) CLARIFICATION OF APPUCABILITY OF PROVISION.—Para-
26 use 412. 
graph (2) of section 412(n) is amended by adding at the end 
the following new sentence: "This subsection shall not apply 
to any plan to which section 4021 of the Employee Retirement 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5041 
Income Security Act of 1974 does not apply (as such section 
is in effect on the date of the enactment of the Retirement 
Protection Act of 1994).". 
(2) REPEAL OF $1,000,000 OFFSET.—Paragraph (3) of section 
412(n) is amended to read as follows: 
26 use 412. 
"(3) AMOUNT OF LIEN.—For puiposes of paragraph (1), the 
amoimt of the lien shall be equal to the aggregate unpaid 
balance of required installments and other payments required 
under this section (including interest)— 
**(A) for plan years beginning after 1987, and 
"(B) for which payment has not been made before 
the due date." 
(3) REPEAL OF 60-DAY DELAY.—Section 412(n)(4)(B) is 
amended by striking "60th day following the". 
(b) AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECU-
RITY ACT OF 1974.— 
(1) CLARIFICATION OF APPLICABILITY OF PROVISION.—Section 
302(f)(1) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1082(f)(1)) is amended by striking "to which 
this section appUes" and inserting "covered under section 4021 
ofthisActf'. 
(2) REPEAL OF $1,000,000 OFFSET.—Paragraph (3) of section 
302(f) of such Act is amended to read as follows: 
"(3) AMOUNT OF LIEN.—For purposes of paragraph (1), the 
amount of the lien shall be equal to the aggregate unpaid 
balance of required installments and other payments required 
under this section (including interest)— 
"(A) for plan years beginning after 1987, and 
"(B) for which payment has not been made before 
the due date." 
(3) REPEAL OF 6O-DAY DELAY.—Section 302(f)(4)(B) of such 
Act is amended by striking "60th day following the". 
(c) EFFECTIVE DATE.—The amendments made by this section 
26 use 412 note. 
shall be effective for installments and other payments required 
under section 412 of the Internal Revenue Code of 1986 or imder 
part 3 of subtitle B of the Employee Retirement Income Security 
Act of 1974 that become due on or after the date of enactment. 
SEC. 769. SPECIAL FUNDING RULES FOR CERTAIN PLANS. 
26 USC 412 note. 
(a) FUNDING RULES NOT TO APPLY TO CERTAIN PLANS.—Any 
changes made by this Act to section 412 of the Internal Revenue 
Code of 1986 or to part. 3 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974 shall not apply to— 
(1) a plan which is, on the date of enactment of this 
Act, subject to a restoration payment schedule order issued 
by the Pension Benefit Guaranty Corporation that meets the 
requirements of section 1.412(c)(l>-3 of the Treasury Regula-
tions, or 
(2) a plan established by an affected air carrier (as defined 
under section 4001(a)(14)(C)(ii)(I) of such Act) and assumed 
by a new plan sponsor pursuant to the terms of a written 
agreement with the Pension Benefit Guaranty Corporation 
dated January 5, 1993, and approved by the United States 
Bankruptcy Court for the District of Delaware on December 
30, 1992. 
(b) CHANGE IN ACTUARIAL METHOD.—Any amortization install-
ments for bases estabhshed under section 412(b) of the Internal 
108 STAT. 5042 
PUBLIC LAW 103-465—DEC. 8, 1994 
Revenue Code of 1986 and section 302Cb) of the Employee Retire-
ment Income Security Act of 1974 for plan years beginning after 
December 31, 1987, and before January 1, 1993, by reason of 
nonelective changes under the firozen entry age actuarial cost 
method shall not be included in the calculation of offsets under 
section 412(lXl)(A)(ii) of such Code and section 302(dXl)(A)(ii) of 
such Act for the 1st 5 plan years beginning after December 31, 
1994. 
PART II—AMENDMENTS RELATED TO TITLE IV 
OF THE EMPLOYEE RETIREMENT INCOME 
SECURITY ACT OF 1974 
SEC. 771. REPORTABLE EVENTS. 
(a) RESPONSIBILITY FOR REPORTABLE EVENTS REPORTING.—Sec-
tion 4043(a) of the Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1343(a)) is amended— 
(1) in the first sentence, by inserting "or the contributing 
sponsor" before "knows or has reason to know"; 
(2) in the first sentence, by inserting ", unless a notice 
otherwise required under this subsection has already been pro-
vided with respect to such event" before the period at the 
end; and 
(3) by striking the last sentence. 
(b) NOTIFICATION THAT EVENT IS ABOUT TO OCCUR.—Section 
4043 of such Act is amended by redesignating subsections (b), 
(c), and (d) as (c), (d), and (e), respectively, and by inserting after 
subsection (a) the following new subsection: 
''(b)(1) The requirements of this subsection shall be appUcable 
to a contributing sponsor if, as of the close of the preceding plan 
year— 
"(A) the aggregate unfunded vested benefits (as determined 
under section 4006(a)(3)(E)(iii)) of plans subject to this titie 
which are maintained by such sponsor and members of such 
sponsor's controlled groups (disreg£irding plans with no 
imiunded vested bene^ts) exceed $50,000,000, and 
"(B) the ftmded vested benefit percentage for such plans 
is less than 90 percent 
For purposes of subparagraph (B), the funded vested benefit 
percentage means the percentage which the aggregate value of 
the assets of such plans bears to the aggregate vested benefits 
of 
such 
plans 
(determined 
in 
accordance 
with 
section 
4006(a)(3)(E)(iii)). 
"(2) This subsection shall not apply to an event if the contribut-
ing sponsor, or the member of the contributing sponsor's controlled 
group to which the event relates, is— 
"(A) a person subiect to the reporting requirements of sec-
tion 13 or 15(d) of tne Securities Exchange Act of 1934, or 
"(B) a subsidiary (as defined for purposes of such Act) 
of a person subject to such reporting reqmrements. 
"(3) No later than 30 days prior to the effective date of an 
event described in paragraph (9), (10), (11), (12), or (13) of subsection 
(c), a contributing sponsor to which the recruirements of this sub-
section apply shall notify the corporation that the event is about 
to occur. 
V -i- * "^'*|^v!^^«ftS:*~i' .•*; 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5043 
"(4) The corporation may waive the requirement of this sub-
section with respect to any or all reportable events with respect 
to any contributing sponsor." 
(c) NEW REPORTABLE EVENTS.—Subsection (c) of section 4043 
of such Act (as redesignated by subsection (h)) is amended— 
29 use 1343. 
(1) by striking the "o^ at the end of paragraph (8); 
(2) by striking paragraph (9); and 
(3) by inserting after .paragraph (8) the following new 
paragraphs: 
. -!.' 
"(9) when, as a result of £in event, a person ceases to 
be a member of the controlled group; 
"(10) when a contributing sponsor or a member of a contrib-
uting sponsor's controlled group liquidates in a case under 
titie 11, United States Code, or under any similar Federal 
law or law of a State or poHtical subdivision of a State; 
"(11) when a contributing sponsor or a member of a contrib-
uting sponsor's controlled group declares £in extraordinary divi-
dend (as defined in section 1059(c) of the Internal Revenue 
Code of 1986) or redeems, in any 12-month period, an aggregate 
of 10 percent or more of the total combined voting power 
of all classes of stock entitied to vote, or an aggregate of 
10 percent or more of the total value of shares of all classes 
of stock, of a contributing sponsor and aU members of its 
controlled group; 
"(12) when, in einy 12-month period, an aggregate of 3 
percent or more of the benefit Uabilities of a plan covered 
by this titie and maintained by a contributing sponsor or a 
member of its controlled group are transferred to a person 
that is not a meniber of the controlled group or to a plan 
or plans maintained by a person or persons that are not such 
a contributing sponsor or a member of its controlled group; 
or 
"(13) when any other event occurs that may be indicative 
of a need to terminate the plan and that is prescribed by 
tiie corporation in regulations." 
(d) DISCLOSURE EXISMPTION.—Section 4043 of such Act is 
amended by adding at the end the following new subsection: 
"(f) Any information or documentary material submitted to 
the corporation pursuant to this section shall be exempt fi*om disclo-
sure under section 552 of titie 5, United States Code, and no 
such information or documentary material may be made pubhc, 
except £
L
S may be relevant to any administrative or judicial action 
or proceeding. Nothing in this section is intended to prevent disclo-
sure to either body of Congress or to any duly authorized committee 
or subconmiittee of the Congress." 
(e) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) Subsection (a) of section 4043 of such Act, and sub-
sections (d) and (e) of such section 4043 (as redesignated by 
subsection (b)), are each amended by striking "subsection (b)" 
each place it appears and inserting "subsection (c)". 
(2) Section 4042(a)(3) of such Act is amended by striking 29 USC 1342. 
"4043(b)(7)" and inserting "4043(c)(7)". 
(f) EFFECTIVE DATE.—The amendments made by this section 29 use 1342 
shall be effective for events occurring 60 days or more afi:er the 
"°^' 
date of enactment of this Act. 
108 STAT. 5044 
PUBLIC LAW 103-465—DEC. 8, 1994 
SEC. 772. CERTAIN INFORMATION REQUIRED TO BE FURNISHED TO 
PBGC. 
(a) GENERAL RULE.—Subtitle A of title IV of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1301 et seq.) 
is amended by adding at the end the following new section: 
29 use 1310. 
"SEC. 4010. AUTHORTIY TO REQUIRE CERTAIN INFORMATION. 
Regulations. 
«(a) INPORMATION REQUIRED.—Each person described in sub-
section (b) shall provide the corporation annually, on or before 
a date specified by the corporation 
"in regulations, with— 
"(1) such records, documents, or other information that 
the corporation specifies in regulations as necessary to deter-
mine the liabilities and assets of plans covered by this titie; 
£Uld 
**(2) copies of such person's audited (or, if unavailable, 
unaudited) financial statements, and such other 
financial 
information as the corporation may prescribe in regulations. 
"(b) PERSONS REQUIRED TO PROVIDE INFORMATION.—The per-
sons covered by subsection (a) are each contributing sponsor, and 
each member of a contributing sponsor's controlled group, of a 
single-employer plan covered by this titie, if— 
"(1) the aggregate unfunded vested benefits at the end 
of the precec^Qg plan year (as determined under section 
4006(aX3)(EXiii)) of plans maintained by the contributing spon-
sor and the members of its controlled group exceed $50,000,000 
(disregarding plans with no unfunded vested benefits); 
"(2) the conditions for imposition of a Hen described in 
section 302(f)(lXA) and (B) of this Act or section 412(nXl)(A) 
and (B) of the Internal Revenue Code of 1986 have been met 
with respect to any plan maintained by the contributing sponsor 
or any member of its controlled group; or 
"(3) minimum fiinding waivers in excess of $1,000,000 have 
been granted with respect to £iny plan maintained by the 
contributing sponsor or any member of its controlled group, 
and any portion thereof is still outstanding. 
"(c) INFORMATION EXEMPT FROM DISCLOSURE REQUIREMENTS.— 
Any information or documentary material submitted to the corpora-
tion pursuant to this section shall be exempt fix)m disclosure under 
section 552 of titie 5, United States Code, and no such information 
or documentaiy material may be made pubUc, except as may be 
relevant to any administrative or judicial action or proceeding. 
Nothing in this section is intended to prevent disclosure to either 
body ofCongress or to any duly authorized committee or subcommit-
tee of the Congress." 
(b) CLERICAL AMENDMENT.—The table of contents contained 
in section 1 of such Act is amended by inserting after the item 
relating to section 4009 the following new item: 
"Sec. 4010. Authorily to require certain information." 
29 use 1310 
(c) EFFECTIVE DATE.—The amendments made by this section 
^°^- 
shall be effective on the date of enactment of this Act 
SEC. 773. ENFORCEMENT OF MINIMUM FUNDING REQUIREMENTS. 
(a) IN GENERAL.—Paragraph (1) of section 4003(e) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1303(e)(1)) is amended— 
(1) by inserting "(A)" after "enforce"; and 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5045 
(2) by striking the period after "title" and inserting ", 
and (B) in the case of a plan which is covered under this 
titie (other than a multiemployer plan) and for which the condi-
tions for imposition of a hen described in section 302(f)(1)(A) 
and (B) of this Act or section 412(nXl)(A) and (B) of the Internal 
Revenue Code of 1986 have been met, section 302 of this 
Act and section 412 of such Code." 
(b) EFFECTIVE DATE.—The amendments made by this section 29 use 1303 
shall be effective for installments and other payments required ^°^-
under section 302 of the Employee Retirement Income Security 
Act of 1974 or section 412 of the Internal Revenue Code of 1986 
that become due on or after the date of the enactment of this 
Act 
SEC. 774. COMPUTATION OF ADDITIONAL PBGC PREMIUM. 
(a) PHASE-OUT OF VARIABLE RATE PREMIUM CAP.— 
(1) IN GENERAL.—Subparagraph (E) of section 4006(aX3) 
of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1306(a)(3)(E)) is amended by striking clause (iv), and 
by redesignating clause (v) as clause (iv). 
(2) EFFECTIVE DATE.— 
29usci306 
(A) IN GENERAL.—The amendments made by this sub- "°**-
section shall be effective for plan years beginning on or 
after July 1,1994. 
(B) TRANSITION RULE.—In the cEise of plan years begin-
ning on or after July 1, 1994, and before July 1, 1996, 
the additional premium payable with respect to any partici-
pant by reason of the amendments made by this section 
shall not exceed the sum o
f
— 
(i) $53, and 
(ii) the product derived by multiplying— 
(I) the excess (if any) of the amoimt deter-
mined under clause (i) of section 4006(a)(3)(E) of 
the Employee Retirement Income Security Act of 
1974, over $53, by 
(II) the appHcable percentage. 
For purposes of this subparagraph, the appUcable percent-
Eige shall be the percentage specified in the following table: 
For the plan year beginning: 
The applica-
ble percent-
on or after 
but before 
age is: 
July 1, 1994 
July 1, 1995 
20 percent 
July 1, 1995 
July 1, 1996 
60 percent 
(b) INTEREST RATE AND ASSET VALUATION.— 
(1) 
INTEREST 
RATE.—Subclause 
(II) 
of 
section 
4006(a)(3)(E)(iii) of the Employee Retirement Income Seciuity 
Act of 1974 is amended— 
(A) by striking *
*
8
0 percent^' and inserting "the 
apphcable percentage", and 
(B) by adding at the end the following new sentence: 
"For purposes of this subclaiise, the aj licable percentage 
is 80 percent for plan years beginning before July 1, 1997, 
85 percent for plan years beginning after June 30, 1997, 
and before the 1st plan year to which the first tables 
prescribed under section 302(d)(7)(C)(ii)(II) apply, and 100 
percent for such 1st plan year and subsequent plan years." 
108 STAT. 5046 
PUBLIC LAW 103-465—DEC. 8, 1994 
(2) ASSET VALUATION.—Clause (iii) of section 4006(a)(3)(E) 
29 use 1306. 
of such Act is amended— 
(A) by inserting "or (III)" after "subclause (11)" in 
subclause (I), and 
(B) by adding at the end the following new subclause: 
"(III) In the case of any plan year for which 
the applicable percentage imder subclause (II) is 
100 percent, the value of the plan's assets used 
in determining''.iinfunded current liability under 
subclause (I) sliall be their fedr market value." 
29 use 1306 
(3) EFFECTIVE DATE.—The amendments made by this sub-
"°*®- 
section shall apply to plan years beginning after tiie date of 
the enactment of this Act 
29 use 1306 
(c) TRANSITION RULE FOR CERTAIN REGULATED PUBLIC UTILI-
"°*®- 
TIES.—^In the case of a regulated pubHc utility described in section 
7701(a)(33XA)(i) of the Internal Revenue Code of 1986, the amend-
ments made by this section shall not apply to plan years beginning 
before the earlier o
f
— 
(1) January 1,1998, or 
(2) the date the regulated public utUity begins to collect 
from utility customers rates that reflect the costs incurred 
or projected to be incurred for additional premitmis under sec-
tion 4006(aX3)(E) of the Employee Retirement Income Security 
Act of 1974 pursuant to final and nonappealable determinations 
by all public utUity commissions (or other authorities having 
jurisdiction over the rates and terms of service by the regulated 
pubUc utility) that the costs are just and reasonable and 
recoverable from customers of the regulated public utility. 
SEC. 775. DISCLOSUKE TO PARTICIPANTS. 
(a) PARTICIPANT NOTICE REQUIREMENT.—Subtitie A of titie IV 
of the Employee Retirement Income Security Act of 1974 (as 
amended by section 772 of this Act) is further amended by adding 
at the end me following new section: 
29 use 1311. 
"SEC 4011. NOTICE TO PARTICIPANTS. 
"(a) IN GENERAL.—^The plan administrator of a plan subject 
to the additional premium under section 4006(a)(3)(E) shall provide, 
in a form and manner and at such time as prescribed in regulations 
of the corporation, notice to plan participants and beneficiaries 
of the plan's funding status and the limits on the corporation's 
guaranty should the plan terminate while underfunded. Such notice 
shall be written in a manner so as to be understood by the average 
planparticipEoit. 
Q)) EXCEPTION.—Subsection (a) shall not apply to any plan 
to which section 302(d) does not apply for the plan year by reason 
of paragraph (9) thereof" 
(b) CLERICAL AMENDMENT.—The table of contents contained 
in section 1 of such Act is amended by inserting after the item 
relating to section 4010 (as added by section 772 of this Act) 
the following new item: 
"Sec. 4011. Notice to participantfl." 
29 use 1311 
(c) EFFECTIVE DATE.—The amendment made by this section 
"°^ 
shall be effective for plan years beginning after the date of enact-
ment of this Act. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5047 
SEC. 776. MISSING PARTICIPANTS. 
(a) IN GENERAL.—Subtitle C of title IV of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1341 et seq.) is 
Eunended by adding at the end the following new section: 
"SEC. 4050. MISSING PARTICn»ANTS. 
29 USC 1350. 
"(a) GENERAL RULE.— 
"(1) PAYMENT TO THE CORPORATION.—A plan administrator 
satisfies section 4041(bX3XA) in the case of a missing partici-
pant only if the plan administrator— 
**(A) transfers the participant's designated benefit to 
the corporation or purclmses an irrevocable commitment 
fix)m an insurer in accordance with clause (i) of section 
4041(b)(3)(A), and 
"(B) provides tiie corporation such information and cer-
tifications with respect to such designated benefits or irrev-
ocable commitments as the corporation shall specify. 
"(2) TREATMENT OF TRANSFERRED ASSETS.—A transfer to 
the corporation imder this section shall be treated as a transfer 
of eissets fix)m a terminated plan to the corporation as trustee, 
and shall be held with assets of terminated plans for which 
the corporation is trustee under section 4042, subject to the 
rules set forth in tiiat section. 
"(3) 
PAYMENT BY THE CORPORATION.—After a missing 
participant whose designated benefit was transferred to the 
corporation is located— 
"(A) in any CEise in which the plan could have distrib-
uted the benefit of the missing participant in a single 
sum without participant or spousal consent under section 
205(g), the corporation shaU. pay the participant or bene-
ficiary a single sum benefit equal to the designated benefit 
paid the corporation plus interest as specified by the cor-
poration, and 
"(B) in any other case, the corporation shall pay a 
benefit based on the designated benefit and the assump-
tions prescribed by the corporation at the time that the 
corporation received the designated benefit. 
The corporation shall make payments imder subparagraph (B) 
available in the same forms and at the same times as a guaran-
teed benefit under section 4022 would be available to be paid, 
except that the corporation may make a benefit available in 
the form of a single sum if the plan provided a single stun 
benefit (other than a single sum described in subsection 
(b)(2)(A)). 
"(b) DEFINITIONS.—For pmposes of this section— 
"(1) MISSING PARTICIPANT.—^The term 'missing participant 
means a participant or beneficiary under a terminating plan 
whom the plan administrator cannot locate after a diligent 
search. 
"(2) DESIGNATED BENEFIT.—The term 'designated benefit 
means the single sum benefit the participant would receive— 
"(A) under the plan's assumptions, in the case of a 
distribution that can be made without participcmt or 
spousal consent imder section 205(g)-
**(B) under the assmnptions of tne corporation in effect 
on the date that the designated benefit is transferred to 
the corporation, in the case of a plan that does not pay 
108 STAT. 5048 
PUBLIC LAW 103-465—DEC. 8, 1994 
any single sums other than those described in subpara-
graph (A); or 
"(C) under the assumptions of the corporation or of 
the plan, whichever provides the higher single sum, in 
the case of a plan that pays a single sum other than 
those described in subparagraph (A). 
"(c) REGULATORY AUTHORITY.—^The corporation shall prescribe 
such regulations as are necessary to carry out the purposes of 
this section, including rules relating to what will be considered 
a diligent search, the amount payable to the corporation, and the 
Eunount to be paid by the corporation." 
(b) CONFORMING TITLE IV AMENDMENTS.— 
(1) AMENDMENT TO SECTION 4003.—Section 4003(a) of such 
Act (29 U.S.C. 1303(a)) is amended in the second sentence 
by inserting before the period the following: "and whether sec-
tion 4050(a) has been satisfied". 
(2) AMENDMENT TO SECTION 4OO5.—Section 4005(b)(2)(A) 
of such Act (29 U.S.C. 1305(b)(2)(A)) is amended by inserting 
"or benefits payable under section 4050" after "section 4022A". 
(3) AMENDMENT TO SECTION 4041.—Section 4041(b)(3)(A)(ii) 
of such Act (29 U.S.C. 1341(b)(3)(A)(ii)) is amended by adding 
at the end the following new sentence: "A transfer of assets 
to the corporation in accordance with section 4050 on behalf 
of a missing participant shall satisfy this subpciragraph with 
respect to such participant" 
(c) CONFORMING ERISA AMENDMENTS.— 
(1) The table of contents contained in section 1 of the 
Employee Retirement Income Security Act of 1974 is Eimended 
by inserting Eifter the item related to section 4049 the following 
new item: 
"Sec. 4050. Missing pEu-ticipants." 
(2) Section 206 of such Act (29 U.S.C. 1056) is amended 
by adding at the end the following new subsection: 
"(f) MISSING PARTICIPANTS IN TERMINATED PLANS.—In tiie case 
of a plan covered by titie IV, the plan shall provide that, upon 
termination of the plan, benefits of missing participants shall be 
treated in accordance with section 4050." 
(d) CONFORMING INTERNAL REVENUE CODE AMENDMENTS.—Sec-
tion 401(a), as amended by section 766 of this Act, is 
fiirther 
amended by inserting after paragraph (33) the following new 
paragraph: 
"(34) 
BENEFITS OF MISSING PARTICIPANTS ON PLAN TERMI-
NATION.—In the case of a plan covered by titie IV of the 
Employee Retirement Income Security Act of 1974, a trust 
forming part of such plan shall not be treated as failing to 
constitute a qualified trust under this section merely because 
the pension plan of which such trust is a part, upon its termi-
nation, transfers benefits of missing participants to the Pension 
Benefit Guaranty Corporation in accordance with section 4050 
of such Act." 
29 use 1056 
(e) EFFECTIVE DATE.—^The provisions of this section shall be 
"°^' 
effective with respect to distributions that occur in plan years 
commencing after final regulations implementing these provisions 
are prescribed by the Pension Benefit Guaranty Corporation, 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5049 
SEC. 777. MODinCAHON OF MAXIMUM GUARANTEE FOB DLSABELnY 
BENEFITS. 
(a) IN GENERAL.—Section 4022(b)(3) of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1322(b)(3)) is amended 
by adding at the end the following new sentences: T h e maximnm 
guaranteed monthly benefit shall not be reduced solely on account 
of the age of a participant in the case of a benefit payable by 
reason of disabihty that occurred on or before the termination 
date, if the participant demonstrates to the satisfaction of the 
corporation timt the Social Secimty Administration has determined 
that the participant satisfies the definition of disability under title 
II or XVI of the Social Security Act, and the regulations thereunder. 
If a benefit payable by reason of disabihty is converted to an 
early or normal retirement benefit for reasons other than a change 
in the health of the participant, such early or normal retirement 
benefit shall be treated as a continuation of the benefit payable 
by reason of disability and this subparagraph shall continue to 
apply." 
(b) EFFECTIVE DATE.—The amendment made by this section 
29 use 1322 
shall be efifective for plan terminations under section 4041(c) of "°** 
the Employee Retirement Income Security Act of 1974 with respect 
to whicn notices of intent to terminate are provided under section 
4041(a)(2) of such Act, or under section 4042 of such Act with 
respect to which proceedings are instituted by the corporation, 
on or after the date of enactment of this Act 
SEC. 778. PBOCEX>UBES TO FACILITATE DISTRIBUTION OF TE31MI-
NATION BENEFITS. 
(A) REMEDIES FOR NONCOMPLIANCE WITH REQUIREMENTS FOR 
STANDARD TERMINATION.— 
(1) NOTICE OF NONCOMPLIANCE.—Section 404lO))(2)(C)(i) 
of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1341(b)(2XCXi)) is amended— 
(A) bv striking subclause (I) and inserting the following 
new subclause: 
"(I) it determines, based on the notice sent 
under paragraph (2)(A) of subsection (b), that there 
is reason to beheve that the plan is not su£&cient 
for benefit liabilities,"; 
(B) by striking the period at the end of subclause 
(II) and inserting ", or"; and 
(C) by adding at the end the following new subclause: 
"(III) it determines that any other requirement 
; 
of subparagraph (A) or (B) of this paragraph or 
of subsection (aX2) has not been met, unless it 
fiuther determines that the issuance of such notice 
would be inconsistent with the interests of partici-
pants and beneficiaries." 
(2) EFFECTIVE DATE.—The amendments made bv this sub- 29 use 1341 
section shall apply to any plan termination imder section 
4041(b) of the Employee Retirement Income Security Act of 
1974 with respect to which the Pension Benefit Guaranty Cor-
poration has not, as of the date of enactment of this Act, 
issued a notice of noncompliance that has become final, or 
otherwise issued a final determination that the plan termi-
nation is nullified. 
note. 
79-194 O—95—16: QL 3 Part 6 
108 STAT. 5050 
PUBLIC LAW 103-465—DEC. 8, 1994 
(b) 
DISTRESS 
TERMINATION 
CRITERIA 
FOR 
BANKING 
INSTITUTIONS.— 
(1) CLARIFICATION OF DISTRESS CRITERION.—Subclause (I) 
of section 4041(c)(2XB)(i) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1341(c)(2)(BXi)) is amended 
by inserting after *under any similar" the following: "Federal 
law or". 
29 use 1341 
(2) EFFECTIVE DATE.—^The amendment made by tbis sub-
"o*®- 
section shall be eflfective as if included in the Single-Employer 
Pension Plan Amendments Act of 1986. 
' • ' . " 
PART III—EFJ'ECTIVE DATES 
26 use 401 note. SEC. 781. EFFECTIVE DATES. 
Except as otherwise provided in this subtitle, the amendments 
made by this subtitle shall be effective on the date of enactment 
of this Act. 
TITLE VIII—PIONEER PREFERENCES 
SEC. 801. PIONEER PREFERENCES. 
Section 309(j) of the Communications Act of 1934 (47 U.S.C. 
309(j)) is amended by adding at the end the following new para-
graph: 
"(13) RECOVERY OF VALUE OF PUBUC SPECTRUM IN CONNEC-
TION WITH PIONEER PREFERENCES.— 
"(A) IN GENERAL.—Notwithstanding paragraph (6XG), 
the Commission shall not award Ucenses pursuant to a 
preferential treatment accorded by the Commission to per-
sons who make significant contributions to the development 
of a new telecommunications service or technology, except 
in accordance with the requirements of this paragraph. 
"(B) RECOVERY OF VALUE.—The Commission shall 
recover for the public a portion of the value of the pubUc 
spectrum resource made available to such person by requir-
ing such person, as a condition for receipt of the license, 
to agree to pay a sum determined by— 
**(i) identifying the winning bids for the Hcenses 
that the Commission determines are most reasonably 
comparable in terms of bandwidth, scope of service 
area, usage restrictions, and other technical character-
istics to the license awarded to such person, and 
excluding Hcenses that the Commission determines are 
subject to bidding anomaHes due to the award of pref-
erential treatment; 
"(ii) dividing each such winning bid bv the popu-
lation of its seryice area (hereinafter referred to £is 
the per capita bid amount); 
"(iii) computing the average of the per capita bid 
amounts for the hcenses identified under clause (i); 
"(iv) reducing such average amount by 15 percent; 
and 
"(v) multiplying the amount determined under 
clause (iv) by tiie population of the service area of 
the license obt£iined by such person. 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5051 
*
*
(
C
) INSTALLMENTS PERMiTTED.^The Commission shall 
require such person to pay the simi required by subpara-
graph (B) in a lump sum or in guaranteed installment 
payments, with or without royalty payments, over a period 
of not more than 5 years. 
"(D) RULEMAKING ON PIONEER PREFERENCES.—^Except 
with respect to pending applications described in clause 
(iv) of this subparagraph, the Commission shall prescribe 
regulations specifying thffi procedures and criteria Dy which 
the Commission will evaluate appUcations for preferential 
treatment in its Ucensing processes (by precluding the filing 
of mutually exclusive applications) for persons who make 
significEmt contributions to the development of a new serv-
ice or to the development of new technologies that substan-
tially enhance an existing service. Such regulations shall— 
"(i) specify the procedures and criteria by which 
the signincance of such contributions will be deter-
mined, after an opportunity for review and verification 
by experts in the radio sciences drawn fix)m among 
persons who are not employees of the Commission 
or by any appHcant for such preferential treatment; 
"(ii) include such other procedures as may be nec-
essary to prevent unjust enrichment by ensuring that 
the value of any such contribution justifies any reduc-
tion in the amounts paid for comparable Hcenses under 
this subsection; 
"(iii) be prescribed not later than 6 months after 
the date of enactment of 
this paragraph; 
"(iv) not apply to applications that have been 
accepted for filing on or before September 1, 1994; 
£Uld 
"(v) cease to be effective on the date of the expira-
tion of the Commission's authority under subparagraph 
(F). 
"(E) 
IMPLEMENTATION WITH RESPECT TO PENDING 
APPLICATIONS.—^In applying this paragraph to any 
broadband licenses in the personal conmiunications service 
awarded pursuEint to the preferential treatment accorded 
by the Federal Communications Commission in the Third 
Report and Order in General Docket 90-314 (FCC 93-
550, released February 3, 1994)— 
"(i) the Commission shall not reconsider the award 
of preferences in such Third Report and Order, and 
the Commission shall not delay the grant of hcenses 
based on such awards more than 15 days following 
the date of enactment of this paragraph, and the award 
of such preferences and hcenses shall not be subject 
to administrative or 
judicial review; 
"(ii) the Commission shall not alter the bandwidth 
or service areas designated for such hcenses in such 
Third Report and Order; 
"(iii) except as provided in clause (v), the Commis-
sion shall use, as the most reasonably compsirable 
hcenses for purposes of subparagraph (BXi), the 
broadband licenses in the personal conmiunications 
service for blocks A and B for the 20 largest markets 
108 STAT. 5052 
PUBLIC LAW 103-465—DEC. 8, 1994 
(ranked by population) in which no appUcant has 
obtained preferential treatment; 
"(iv) for purposes 
of subpara^aph 
(C), the 
Commission shall permit guaranteed installment pay-
ments over a period of 5 years, subject to— 
"(I) the -payment only oi interest on unpaid 
balances diinng the first 2 years, commencing not 
later than 30 days after the award of the Hcense 
(including any jireferential treatment used in mak-
ing such awara) is final and no longer subject 
to administrative or judicial review, except that 
no such payment shall be required prior to the 
date of completion of the auction of the comparable 
licenses described in clause (iii); and 
"(II) payment of the unpaid balance and 
interest thereon after the ena of such 2 years 
in accordance with the regulations prescribed by 
the Conmiission; and 
"(v) the Commission shall recover with respect to 
broadband licenses in the personal communications 
service an amount under this paragraph that is equal 
to not less than $400,000,000, £ind if such amount 
is less than $400,000,000, the Commission shall recover 
an amount equal to $400,000,000 by allocating such 
amount among the holders of such licenses based on 
the population of the license areas held by each 
licensee. 
The Commission shall not include in any amounts required 
to be collected under clause (v) the interest on unpaid 
balances required to be collected under clause (iv). 
"(F) ExPiRATiON.^The authority of the Commission 
to provide preferential treatment in licensing procedures 
(by precluding the filing of mutually exclusive applications) 
to persons who make significant contributions to the devel-
opment of a new service or to the development of new 
technologies that substantially enhance an existing service 
shall expire on September 30,1998. 
"(G) EFFECTIVE DATE.—^This parsigraph shall be effec-
tive on the date of its enactment and apply to anv licenses 
issued on or after August 1, 1994, by the Federal Commu-
nications Commission pursuant to any licensing procedure 
PUBLIC LAW 103-465—DEC. 8, 1994 
108 STAT. 5053 
that provides preferential treatment (by precluding the 
filing of mutimlly exclusive applications) to persons who 
make significant contributions to the development of a 
new service or to the development of new technologies 
that substantially enhance an existing service.". 
Approved December 8, 1994. 
LEGISLATIVE HISTORY—H.R. 5110 (S. 2467): 
HOUSE REPORTS: No. 103-826, Pt. 1 (Coram, on Ways and Means) and 
Ft. 2 (Coram, on Energy and Coraraerce). 
SENATE REPORTS: No. 103-412 accompanying S. 2467 (Comra. on Finance, 
Comra. on Agriculture, Nutrition, and Forestry, and 
Coram, on Grovemraental Affairs). 
CONGRESSIONAL RECORD, Vol. 140 (1994): 
Nov. 29, considered and passed House. 
Nov. 30, Dec. 1, considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 30 (1994): 
Dec. 8, Presidential reraarks.