An Act to amend certain administrative provisions of the Tariff Act of 1930 and to repeal obsolete provisions of the customs laws
PL 84-927 (H.R.6040), enacted 08/02/1956

70 STAT.] 
PUBLIC DAW 927-AUG. 2, 1956 
Public Law 927 
CHAPTER 887 
AN ACT 
August 2, 1956 
To amend certain administrative provisions of the Tariff Act of 1930 and to 
[H. R. 6040] 
repeal obsolete provisions of the customs laws. 
Be it enacted }>y the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ That this Act may 
be cited as the "Customs Simplification Act of 1956". 
SEC. 2. (a) Section 402 of the Tariff Act of 1930, as amended 
(U. S. C, 1952 edition, title 19, sec. 1402), is redesignated "SEC. 402a. 
VALUE (ALTERNATIVE)/; and such Tariff Act of 1930 is 
amended by inserting therein immediately before the redesignated 
section 402a a new section 402 to read as follows: 
"SEC. 402. VALUE. 
"(a) BASIS,—Except as otherwise specifically provided for in this 
Act, the value of imported merchandise for the purposes of this Act 
shall be— 
"(1) the export value, or 
"(2) if the export value cannot be determined satisfactorily, 
then the United States value, or 
"(3) if neither the export value nor the United States value 
can be determined satisfactorily, then the constructed value; 
except that, in the case of an imported article subject to a rate of duty 
based on the American selling price of a domestic article, such value 
shall be— 
"(4) the American selling price of such domestic article. 
"(b) EXPORT VALUE.—For the purposes of this section, the export 
value of imported merchandise shall be the price, at the time of ex-
portation to the United States of the merchandise undergoing ap-
praisement, at which such or similar merchandise is freely sold or, in 
the absence of sales, offered for sale in the principal markets of the 
country of exportation, in the usual wholesale quantities and in the 
ordinary course of trade, for exportation to the United States, plus, 
when not included in such price, the cost of all containers and cover-
ings of whatever nature and all other expenses incidental to placing 
the merchandise in condition, packed ready for shipment to the United 
States. 
"(c) UNIIED STATES VALUE,—For the purposes of this section, the 
United States value of imported merchandise shall be the price, at the 
time of exportation to the United States of the merchandise under-
going appraisement, at which such or similar merchandise is freely 
sold or, in the absence of sales, offered for sale in the principal market 
of the United States for domestic consumption, packed ready for 
delivery, in the usual wholesale quantities and in the ordinary course 
of trade, with allowances made for— 
"(1) any commission usually paid or agreed to be paid, or the 
addition for profit and general expenses usually made, in connec-
tion with sales in such market of imported merchandise of the 
same class or kind as the merchandise undergoing appraisement; 
"(2) the usual costs of transportation and insurance and other 
usual expenses incurred with respect to such or similar merchan-
dise from the place of shipment to the place of delivery, not 
including any expense provided for in subdivision (1); and 
"(3) the ordinary customs duties and other Federal taxes cur-
rently payable on such or similar merchandise by reason of its 
importation, and any Federal excise taxes on, or measured by the 
value of, such or similar merchandise, for which vendors at 
wholesale in the United States are ordinarily liable. 
Customs SlmpH-
f l c a t i o n Act of 
1956. 
46 Stat. 708. 
V a l u e 
of Im-
p o r t e d merchai»> 
dise. 
944 
PUBLIC LAW 927-AUG. 2, 1956 
[70 STAT. 
"If such or similar merchandise was not so sold or offered at the 
time of exportation of the merchandise undergoing appraisement, the 
United States value shall be determined, subject to the foregoing speci-
fications of this subsection, from the price at which such or similar 
merchandise is so sold or offered at the earliest date after such time 
of exportation but before the expiration of ninety days after the im-
portation of the merchandise undergoing appraisement. 
"(d) CONSTRUCTED VALUE.—For the purposes of this section, the 
constructed value of imported merchandise shall be the sum of— 
"(1) the cost of materials (exclusive of any internal tax appli-
cable in the country of exportation directly to such materials or 
their disposition, but remitted or refunded upon the exportation 
of the article in the production of which such materials are used) 
and of fabrication or other processing of any kind employed in 
producing such or similar merchandise, at a time preceding the 
date of exportation of the merchandise undergoing appraise-
ment which would ordinarily permit the production of that par-
ticular merchandise in the ordinary course of business; 
"(2) an amount for general expenses and profit equal to that 
usually reflected in sales of merchandise of the same general class 
or kind as the merchandise undergoing appraisement which are 
made by producers in the country of exportation, in the usual 
wholesale quantities and in the ordinary course of trade, for ship-
ment to the United States; and 
" (3) the cost of all containers and coverings of whatever nature, 
and all other expenses incidental to placing the merchandise un-
dergoing appraisement in condition, packed ready for shipment 
to the United States. 
"(e) AMERICAN SELLING PRICE.—For the purposes of this section, 
the American selling price of any article produced in the United 
States shall be the price, including the cost of all containers and cov-
erings of whatever nature and all other expenses incidental to placing 
the article in condition packed ready for delivery, at which such article 
is freely sold or, in the absence of sales, offered for sale for domestic 
consumption in the principal market of the United States, in the ordi-
nary course of trade and in the usual wholesale quantities, or the price 
that the manufacturer, producer, or owner would have received or was 
willing to receive for such article when sold for domestic consump-
tion in the ordinary course of trade and in the usual wholesale quan-
tities, at the time of exportation of the imported article. 
"(f) DEFINITIONS.—For the purposes of this section— 
"(1) The term 'freely sold or, in the absence of sales, offered 
for sale' means sold or, in the absence of sales, offered— 
"(A) to all purchasers at wholesale, or 
"(B) in the ordinary course of trade to one or more selected 
purchasers at wholesale at a price which fairly reflects the 
market value of the merchandise, 
without restrictions as to the disposition or use of the merchandise 
by the purchaser, except restrictions as to such disposition or use 
which (i) are imposed or required by law, (ii) limit the price at 
which or the territory in which the merchandise may be resold, 
or (iii) do not substantially affect the value of the merchandise to 
usual purchasers at wholesale. 
"(2) The term 'ordinary course of trade' means the conditions 
and practices which, for a reasonable time prior to the exportation 
of the merchandise undergoing appraisement, have been normal 
in the trade under consideration with respect to merchandise 
of the same class or kind as the merchandise undergoing appraise-
ment. 
70 STAT.] 
PUBLIC LAW 927-AUG. 2, 1956 
946 
" (3) The term 'purchasers at wholesale' means purchasers who 
buy in the usual wholesale quantities for industrial use or for 
resale otherwise than at retail; or, if there are no such purchasers, 
then all other purchasers for resale who buy in the usual wholesale 
quantities; or, if there are no purchasers in either of the fore-
going categories, then all other purchasers who buy in the usual 
wholesale quantities. 
"(4) The term 'such or similar merchandise' means merchan-
dise in the first of the following categories in respect of which 
export value. United States value, or constructed value, as the 
case may be, can be satisfactorily determined: 
"(A) The merchandise undergoing appraisement and other 
merchandise which is identical in physical characteristics 
with, and was produced in the same country by the same 
person as, the merchandise undergoing appraisement. 
"(B) Merchandise which is identical in physical character-
istics with, and was produced by another person in the same 
country as, the merchandise undergoing appraisement. 
"(C) Merchandise (i) produced in the same country and 
by the same person as the merchandise undergoing appraise-
ment, (ii) like the merchandise undergoing appraisement in 
component material or materials and in the purposes for 
which used, and (iii) approximately equal in commercial 
value to the merchandise undergoing appraisement. 
"(D) Merchandise which satisfies all the requirements of 
subdivision (C) except that it was produced by another per-
son. 
"(5) The term 'usual wholesale quantities', in any case in which 
the merchandise in respect of which value is being determined is 
sold in the market under consideration at different prices for dif-
ferent quantities, means the quantities in which such merchandise 
is there sold at the price or prices for one quantity in an aggregate 
volume which is greater than the aggregate volume sold at the 
price or prices for any other quantity. 
"(g) 
TRANSACTIONS BETWEEN RELATED PERSONS.— 
"(1) For the purposes of subsection (c) (1) or (d),as the case 
may be, a transaction directly or indirectly between persons speci-
fied in any one of the subdivisions in paragraph (2) of this 
subsection 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 in the market under consideration of merchandise of the 
same general class or kind as the merchandise undergoing ap-
praisement. 
If a transaction is disregarded under the preceding 
sentence and there are no other transactions available for consid-
eration, then, for the purposes of subsection (d), the determina-
tion of the amount required to be considered shall be based on the 
best evidence available as to what the amount would have been if 
the transaction had occurred between persons not specified in 
any one of the subdivisions in paragraph (2). 
"(2) The persons referred to in paragraph (1) are: 
"(A) Members of a family, including brothers and sisters 
(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 directly or indirectly owning, con-
trolling, or holding with power to vote, 5 per centum or more 
69225 O - 5 7 -64 ( V o l . 70) 
946 
PUBLIC LAW 927-AUG. 2, 1956 
[70 STAT. 
of the outstanding voting stock or shares of any organization 
and such organization; and 
"(F) Two or more persons directly or indirectly con-
trolling, controlled by, or under common control with, any 
person." 
(b) Paragraph 27 (c) of the Tariff Act of 1930 (U. S. C , 1952 
46 Stat. 593. 
editiou, title 19, sec. 1001, par. 27 (c)), is amended by striking out 
"(as defined in subdivision (g) of section 402, title IV)," and ", as 
defined in subdivision (e) of section 402, title IV". 
(c) Paragraph 28 (c) of the Tariff Act of 1930 (U. S. C, 1952 edi-
46 Stat. 594. 
tiou, title 19, sec. 1001, par. 28 (c)), is amended by striking out "(as 
defined in subdivision (g) of section 402, title IV)," and ", as defined 
in subdivision (e) of section 402, title IV". 
(d) Section 336 (b) of the Tariff Act of 1930 (U. S. C , 1952 edi-
46 Stat. 701. 
tion, title 19, sec. 1336 (b)), is amended by striking out" (as defined in 
section 402 (g))". 
(e) In any action relating to tariff adjustments by executive action, 
including action taken pursuant to section 350 of the Tariff Act of 
19 use ?35i. 
1930, as amended, the United States Tariff Commission and each officer 
of the executive branch of the Government concerned shall give full 
consideration to any reduction in the level of tariff protection which 
has resulted or is likely to result from the amendment of section 402 
Ant^ p. 943. 
of the Tariff Act of 1930 made by this Act. 
Ante. p. 943. 
(f) Redesignated section 402a of the Tariff Act of 1930 is amended 
by deleting the word "merchandise" in the introductory matter of 
subsection (a) and substituting therefor "articles designated by the 
Secretary of the Treasury as provided for in section 6 (a) of the 
Post, p. 948. 
Customs Simplification Act of 1956". 
cvSlncyf'^^"^ ''^ 
^^^: ^' Section 522 (c) of the Tariff Act of 1930 (U. S. C, 1952 edi-
46 Stat. 740. 
tiou, title 31, sec. 372) is amended to read as follows: 
"(c) MARKET RATE W H E N No PROCLAMATION.— 
"(1) If no value has been proclaimed under subsection (a) for 
the quarter in which the merchandise was exported, or if the 
value so proclaimed varies by 5 per centum or more from a value 
measured by the buying rate at noon on the day of exportation, 
then conversion of the foreign currency involved shall be made— 
"(A) at a value measured by such buying rate, or 
"(B) if the Secretary of the Treasury shall by regulation 
so prescribe with respect to the particular foreign currency, 
at a value measured by the buying rate first certified under 
this subsection for a day in the quarter in which the day of 
exportation falls (but only if the buying rate at noon on the 
day of exportation does not vary by 5 per centum or more 
from such first-certified buying rate). 
"(2) For the purposes of this subsection the term 'buying rate' 
means the buying rate in the New York market for cable transfers 
payable in the foreign currency so to be converted. 
Such rate 
shall be determined by the Federal Reserve Bank of New York 
and certified to the Secretary of the Treasury, who shall make 
it public at such times and to such extent as he deems necessary. 
In ascertaining such buying rate, the Federal Reserve Bank of 
New York may, in its discretion— 
"(A) take into consideration the last ascertainable trans-
actions and quotations, whether direct or through exchange 
of other currencies, and 
"(B) if there is no market buying rate for such cable trans-
fers, calculate such rate (i) from actual transactions and 
quotations in demand or time bills of exchange, or (ii) from 
the last ascertainable transactions and quotations outside the 
70 STAT.] 
PUBLIC LAW 927-AUG. 2, 1956 
947 
United States in or for exchange payable in United States 
currency or other currency. 
"(3) For the purposes of this subsection, if the day of exporta-
tion is one on which banks are generally closed in New York City, 
then the buying rate at noon on the last preceding business day 
shall be considered the buying rate at noon on the day of ex-
portation." 
SEC. 4. (a) The following provisions of law are hereby repealed: 
Repeals. 
(1) Section 2649, Revised Statutes (U. S. C , 1952 edition, title 
19, sec. 12). 
(2) The provisions of law now codified in section 13 of title 19 
of the United States Code (U. S. C , 1952 edition, title 19, sec. 13). 
(3) Section 2651, Revised Statutes (U. S. C, 1952 edition, title 
19, sec. 14). 
(4) Section 2999, Revised Statutes (U. S. C, 1952 edition, title 
19, sec. 15). 
(5) Section 2940, Revised Statutes (U. S. C , 1952 edition, title 
19, sec. 16). 
(6) Section 2941, Revised Statutes (U. S. C , 1952 edition, title 
19, sec. 17). 
(7) Section 2942, Revised Statutes (U. S. C, 1952 edition, title 
19, sec. 18). 
(8) Section 2616, Revised Statutes (U. S. C, 1952 edition, title 
19, sec. 21). 
(9) Section 2614, Revised Statutes (U. S. C, 1952 edition, title 
19, sec. 22). 
(10) Section 2615, Revised Statutes (U. S. C, 1952 edition, title 
19, sees. 23 and 376). 
(11) Section 2617, Revised Statutes (U. S. C, 1952 edition, title 
19, sec. 24). 
(12) Section 2611, Revised Statutes (U. S. C, 1952 edition, title 
19, sec. 26). 
(13) Section 11 of the Act of February 8, 1875 (U. S. C, 1952 
is ««»• 309. 
edition, title 19, sees. 24 and 27). 
(14) Act of September 24, 1914 (U. S. C, 1952 edition, title 
^s stat. 7i6. 
19, sec. 28). 
(15) Section 2627, Revised Statutes (U. S. C, 1952 edition, 
title 19, sec. 40). 
(16) Section 2687, Revised Statutes (U. S. C , 1952 edition, 
title 19, sec. 53). 
(17) Section 2646, Revised Statutes (U. S. C , 1952 edition, 
title 19, sec. 54). 
(18) Section 2647, Revised Statutes (U. S. C , 1952 edition, 
title 19, sec. 55). 
(19) Section 2944, Revised Statutes (U. S. C, 1952 edition, 
title 19, sec. 56). 
(20) Section 2648, Revised Statutes (U. S. C , 1952 edition, 
title 19, sec. 57). 
(21) Section 2635, Revised Statutes (U. S. C , 1952 edition, 
title 19, sec. 59). 
(22) Section 2580, Revised Statutes (U. S. C, 1952 edition, 
title 19, sec. 61). 
(23) Act of December 18, 1890 (U. S. C, 1952 edition, title 
26 stat. 69o. 
19, sec. 62). 
(24) Section 258, Revised Statutes (U. S. C , 1952 edition, 
title 19, sec. 67). 
(25) Section 2612, Revised Statutes (U. S. C , 1952 edition, title 
19, sec. 379). 
PUBLIC LAW 927-AUG. 2, 1956 
[70 STAT. 
(26) Section 2918, Revised Statutes (U. S. C , 1952 edition, title 
19, sec. 390). 
18 Stat. 188. 
(27) Section 13 of the Act of June 22,1874 (U. S. C , 1952 edi-
tion, title 19, sec. 494). 
(28) Section 3089, Revised Statutes (U. S. C , 1952 edition, title 
19, sec. 526). 
(29) Section 2763, Revised Statutes (U. S. C , 1952 edition, title 
19, sec. 541). 
37 Stat. 665. 
(39) Act of February 10, 1913 (U. S. C, 1952 edition, title 19, 
sec. 542). 
(31) Section 3650, Revised Statutes (U. S. C , 1952 edition, title 
31, sec. 549). 
(32) Section 960, Revised Statutes (U. S. C , 1952 edition, title 
19, sec. 579). 
(33) So much of section 3689 of the Revised Statutes (U. S. C , 
1952 edition, title 31, sec. 711 (7)) as reads: "Repayment of excess 
of deposits for unascertained duties, (customs): To repay to im-
porters the excess of deposits for unascertained duties, or duties 
or other moneys paid under protest.". 
(34) So much of section 1 of the Act of September 30, 1890 
(26 Stat. 511), as reads: "And such clerks and inspectors of cus-
toms as the Secretary of the Treasury may designate for the pur-
pose shall be authorized to administer oaths, such as deputy col-
lectors of customs are now authorized to administer, and no com-
pensation shall be paid or charge made therefor.". 
(b) The second sentence of subsection (f) of section 500 of the 
46 Stat. 730. 
Tariff Act of 1930 (U. S. C , 1952 edition, title 19, sec. 1500 (f)) is 
amended by striking out "take the oath," and by striking out the 
comma after "duties". 
(c) Section 583 of the Tariff Act of 1930 (U. S. C, 1952 edition, 
46 Stat. 748. 
ti^ie 19, sec. 1583) is amended by striking out "the back of". 
o ^atfom^^"^ ^'^^ 
^^^- ^' Nothing in this Act shall be considered to repeal, modify, or 
supersede, directly or indirectly, any provision of the Antidumping 
42 Stat. 11. 
Act, 1921, as amended (U. S. C , 1952 edition, title 19, sees. 160-173). 
The Secretary of the Treasury, after consulting with the United States 
Tariff Commission, shall review the operation and effectiveness of 
gress?**'* *° ^°^ ^^^^ Antidumping Act and report thereon to the Congress within six 
months after the date of enactment of this Act. 
In that report, the 
Secretary shall recommend to the Congress any amendment of such 
Antidumping Act which he considers desirable or necessary to pro-
vide for greater certainty, speed, and efficiency in the enforcement 
of such Antidumping Act. 
toVe valLd?^*"^** 
^^^- ^- (^) '^^^ Secretary of the Treasury shall determine and make 
Ante, p. 943. 
public a Hst of the articles which shall be valued in accordance with 
section 402a, Tariff Act of 1930, as amended by this Act, as follows: 
As soon as practicable after the enactment of this Act the Secretary 
shall make public a preliminary list of the imported articles which 
he shall have determined, after such investigation as he deems nec-
essary, would have been appraised in accordance with section 402 of 
Ante, p. 943. 
the Tariff Act of 1930, as amended by this Act, at average values for 
each article which are 95 (or less) per centum of the average values 
at which such article was actually appraised during the fiscal year 
1954. If within sixty days after the publication of such preliminary 
list any manufacturer, producer, or wholesaler in the United States 
presents to the Secretary his reason for belief that any imported 
articles not specified in such list and like or similar to articles manu-
factured, produced, or sold at wholesale by him would have been 
appraised in accordance with such section 402 at average values which 
are 95 (or less) per centum of the average values at which they were 
70 S T A T . ] 
PUBLIC LAW 9 28-AUG. 2, 1956 
949 
or would have been appraised under section 402a, Tariff Act of 1930, 
as amended by this Act, the Secretary shall cause such investigation 
of the matter to be made as he deems necessary. If in the opinion of 
the Secretary the reason for belief is substantiated by the investiga-
tion, the articles involved shall be added to the preliminary list and 
such list, including any additions so made thereto, shall be published 
as a final list. Every article so specified in the final list which is 
entered, or withdrawn from warehouse, for consumption on or after 
the thirtieth day following the date of publication of the final list 
shall be appraised in accordance with the provisions of section 402a, 
Tariff Act of 1930, as amended by this Act. 
(b) The final list published in accordance with the provisions of sub-
section (a), together with explanatory data, shall be transmitted 
promptly to the chairmen of the Coiamittee on Ways and Means of 
the House of Representatives and the Committee on Finance of the 
Senate. 
SEC. 7. Nothwithstanding the provisions of the last paragraph un-
der the heading "CUSTOMS SERVICE" of the Act entitled "An Act making 
appropriations for sundry civil expenses of the Government for the 
fiscal year ending June thirtieth, nineteen hundred and fifteen, and for 
other purposes", approved August 1,1914 (38 Stat. 623,19 U. S. C. 2), 
the State of New Mexico shall hereafter constitute a separate customs 
collection district with headquarters either in Deming or Columbus. 
New Mexico, and such additional ports of entry as the Secretary of the 
Treasury may deem necessary. 
SEC. 8. This Act shall be effective on and after the day following the 
date of its enactment, except that section 2 shall be effective only as to 
articles entered, or withdrawn from warehouse, for consumption on or 
after the thirtieth day following the publication of the final list pro-
vided for in section 6 (a) of this Act, and section 3 shall be effective 
as to entries filed on or after the thirtieth day following the date of 
enactment of this Act. 
Approved August 2, 1956. 
Ante, p. 943. 
Tr ansmittsil to 
C o n g r e ss i o nal 
committees. 
N e w Mexico as 
collection district. 
Effective's datiBS. 
Public Law 928 
CHAPTER 
AN ACT 
To amend further the Federal Civil Defense Act of 1950, as amended, to authorize 
the Administrator to pay travel expenses and per diem allowances to trainees 
in attendance at the National Civil Defense Staff College, and for other 
purposes. 
August 2, 195i) 
[H. R. 10432] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That subsection 201 
(e) of the Federal Civil Defense Act of 1950 (64 Stat. 1245), as 
amended, is amended by striking out the words "including the fur-
nishing of subsistence and quarters for trainees and instructors subject 
to reimbursement on terms prescribed by the Administrator", and 
substituting the following therefor: "including the payment of travel 
expenses, in accordance with the Travel Expenses Act of 1949, as 
amended, and the Standardized Government Travel Kegulations, and 
per diem allowances, in lieu of subsistence for trainees in attendance 
or the furnishing of subsistence and quarters for trainees and 
instructors on terms prescribed by the Administrator". 
SEC. 2. There is hereby authorized to be appropriated not to exceed 
the sum of $100,000 annually for the purpose of carrying out the 
provisions of this Act. 
Approved August 2, 1966. 
Civil 
d e f e n s e 
trainees. 
Travel expense)s. 
64 Stat. 1249. 
60 USCapp. 2281. 
63 Stat. 166. 
5 u s e 835 notu. 
impropriation.