Omnibus Trade and Competitiveness Act of 1988
PL 100-418 (H.R.4848), enacted 08/23/1988

PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1107 
Public Law 100-418 
100th Congress 
An Act 
To enhance the competitiveness of American industry, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—^This Act may be cited as the "Omnibus Trade 
and Competitiveness Act of 1988". 
(b) TABLE OF CONTENTS.— 
Sec. 1. Short title and table of contents. 
Sec. 2. Legislative history of H.R. 3 applicable. 
TITLE I—TRADE, CUSTOMS, AND TARIFF LAWS 
Sec. 1001. Findings and purposes. 
Subtitle A—United States Trade Agreements 
PABT 1—NEGOTIATION AND IMPLEMENTATION OF TRADE AGREEMENTS 
Sec. 1101. OveraU and principal trade n^otiating objectives of the United States. 
Sec. 1102. Trade agreement n^otiating authority. 
Sec. 1103. Implementation of trade agreements. 
Sec. 1104. Compensation authority. 
Sec. 1105. Termination and reservation authority; reciprocal nondiscriminatory 
treatment. 
Sec. 1106. Accession of state trading r^imes to the General Agreement on TarifSs 
and Trade. 
Sec. 1107. Definitions and conforming amendments. 
PART 2—HEARINGS AND ADVICE CONCERNING NEGOTIATIONS 
Sec. 1111. Hearings and advice. 
PART 3—OTHER TRADE AGREEBIENT AND NEGOTIATION PROVISIONS 
Sec. 1121. Implementation of Nairobi Protocol. 
Sec. 1122. Implementation of United States-EC Agreement on citrus and pasta. 
;' 
Sec. 1123. Extension of International Coffee Agreement Act of 1980. 
Sec. 1124. N^iotiations on currency exchange rates. 
Sec. 1125. Reports on n^otiations to eliminate wine trade barriers. 
Subtitle B—Implementation of the Harmonized Tariff Schedule 
Sec. 1201. Purposes. 
Sec. 1202. Definitions. 
Sec. 1203. Congressional approval of United States accession to tiie Convention. 
Sec. 1204. Enactment of the Harmonized Tariff Schedide. 
Sec. 1205. Commission review of, and recommendations regarding, the Harmonized 
Tariff Schedule. 
Sec. 1206. Presidential action on Commission recommendatioiis. 
Sec. 1207. Publication of the Harmonized Tariff Schedule. 
Sec. 1208. Import and export statistics. 
Sec. 1209. Coordination of trade policy and the Convention. 
Sec. 1210. United States participation on the Customs Cooperation Council regard-
ing the Convention. 
Sec. 1211. Transition to the Harmonized Tariff Schedule. 
Sec. 1212. Reference to the Harmonized Tariff Schedule. 
Sec. 1213. Technical amendments. 
Sec. 1214. Conforming amendments. 
Sec. 1215. N^otiating authority for certain ADP equipment. 
Sec. 1216. Commission report on operation of subtitle. 
Aug. 23, 1988 
[H.R. 4848] 
Omnibus Trade 
and 
Competitiveness 
Act of 1988. 
Exports. 
Imports. 
International 
agreements. 
19 u s e 2901 
note. 
102 STAT. 1108 
PUBLIC LAW 100-418—AUG. 23, 1988 
Sec. 1217. Effective dates. 
Subtitle C—Response to Unfair International Trade Practices 
PART 1—ENFORCEMENT OF UNITED STATES RIGHTS UNDER TRADE AGREEMENTS AND 
RESPONSES TO FOREIGN TRADE PRACTICES 
Sec. 1301. Revision of chapter 1 of title III of the Trade Act of 1974. 
Sec. 1302. Identiflcation of trade liberalization priorities. 
Sec. 1303. Identiflcation of countries that deny adequate and effective protection of 
intellectual property rights. 
Sec. 1304. Amendments to the National Trade Estimates. 
Sec. 1305. Investigation of barriers in Japan to certain United States services. . 
Sec. 1306. Trade and economic relations with Japan. 
Sec. 1307. Supercomputer trade dispute. 
PART 2—IMPROVEMENT IN THE ENFORCEMENT OF THE ANTIDUMPING AND 
COUNTERVAIUNG DUTY LAWS 
Sec. 1311. Reference to title VII of the Tariff Act of 1930. 
Sec. 1312. Actionable domestic subsidies. 
Sec. 1313. Calculation of subsidies on certain processed agricultural, products. 
Sec. 1314. Revocation of status as a country under the Agreement. 
Sec. 1315. Treatment of international consortia. 
Sec. 1316. Dumping by nonmarket economy countries. 
Sec. 1317. Third-country dumping. 
Sec. 1318. Input dumping by related parties. 
Sec. 1319. Fictitious markets. 
Sec. 1320. Downstream product monitoring. 
Sec. 1321. Prevention of circumvention of antidumping and countervailing duty 
orders. 
Sec. 1322. Steel imports. 
Sec. 1323. Short life cycle products. 
Sec. 1324. Critical circumstances. 
Sec. 1325. Expedited review authority. 
Sec. 1326. Processed agricultural products. 
Sec. 1327. Leases equivalent to sales. 
Sec. 1328. Material injury. 
Sec. 1329. Threat of material injury. 
Sec. 1330. Cumulation. 
Sec. 1331. Certiflcation of submissions. 
Sec. 1332. Access to information. 
Sec. 1333. Correction of ministerial errors. 
Sec. 1334. Drawback treatment. 
Sec. 1335. Grovemmental importations. 
Sec. 1336. Studies. 
Sec. 1337. Effective dates. 
PART 3—PROTECTION OF INTELLECTUAL PROPERTY RIGHTS 
Sec. 1341. Congressional flndings and purposes. 
Sec. 1342. Protection under the Tariff Act of 1930. 
PART 4—TELECOMMUNICATIONS TRADE 
Sec. 1371. Short title. 
Sec. 1372. Findings and purposes. 
Sec. 1373. Definitions. 
Sec. 1374. Investigation of foreign telecommunications trade barriers. 
Sec. 1375. Negotiations in response to investigation. 
Sec. 1376. Actions to be taken if no agreement obtained. 
Sec. 1377. Review of trade agreement implementation by Trade Representative. 
Sec. 1378. Compensation authority. 
Sec. 1379. Consultations. 
Sec. 1380. Submission of data; action to ensure compliance. 
Sec. 1381. Study on telecommunications competitiveness in the United States. 
Sec. 1382. International obligations. 
Subtitle D—Adjustment to Import Competition 
PART 1—PosmvE ADJUSTMENT BY INDUSTRIES INJURED BY IMPORTS 
Sec. 1401. Positive adjustment by industries injured by imports. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1109 
PART 2—MARKET DISRUPTION 
Sec. 1411. Market disruption. 
PART 3—TRADE ADJUSTMENT ASSISTANCE 
Sec. 1421. Eligibility of workers and firms for trade adjustment assistance. 
Sec. 1422. Notice to workers of benefits under trade adjustment assistance program. 
Sec. 1423. Cash assistance for workers. 
Sec. 1424. Job training for workers. 
Sec. 1425. Limitation on period in which trade readjustment allowances may be 
paid. 
Sec. 1426. Authorization of trade adjustment assistance program. 
Sec. 1427. Trade Adjustment Assistance Trust Fund. 
Sec. 1428. Imposition of small uniform fee on all imports. 
Sec. 1429. Study of certification methods. 
Sec. 1430. Effective dates. 
Subtitle E~National Security 
Sec. 1501. Imports that threaten national security. 
Subtitle F—Trade Agencies; Advice, Consultation, and Reporting Regarding Trade 
Matters 
PART 1—FUNCTIONS AND ORGANIZATION OF TRADE AGENCIES 
SUBPART A—OFFICE OF THE UNrrED STATES TRADE REPRESENTATIVE 
Sec. 1601. Functions. 
SUBPART B—UNITED STATES INTERNATIONAL TRADE COMMISSION 
Sec. 1611. Service on Commission for purposes of determining eligibility for desig-
nation as Chairman. 
Sec. 1612. Treatment of Commission under Paperwork Reduction Act. 
Sec. 1613. Treatment of confidential information by Commission. 
Sec. 1614. Trade Remedy Assistance Office. 
SUBPART C—INTERAGENCY TRADE ORGANIZATION 
Sec. 1621. Functions and organization. 
PART 2—ADVICE AND CONSULTATION REGARDING TRADE POUCY, NEGOTIATIONS, AND 
AGREEMENTS 
Sec. 1631. Information and advice from private and public sectors relating to trade 
policy and agreements. 
Sec. 1632. Congressional liaison regarding trade policy cmd agreements. 
PART 3—ANNUAL REPORTS AND NATIONAL TRADE POUCY AGENDA 
Sec. 1641. Reports and agenda. 
Subtitle G—Tariff Provisions 
PART 1—AMENDMENTS TO THE TARIFF SCHEDULES OF THE UNFFED STATES 
Sec. 1701. Reference. 
SUBPART A — P E R M A N E N T CHANGES IN TARIFF TREATMENT 
Sec. 1711. Broadwoven fabrics of man-made fibers. 
Sec. 1712. Naphtha and motor fuel blending stocks. 
Sec. 1713. Watches and watch components. 
Sec. 1714. Slabs of iron or steel. 
Sec. 1715. Certain work gloves. 
Sec. 1716. Duty-free importation of hatter's fur. 
Sec. 1717. Extracorporeal shock wave lithotripters. 
Sec. 1718. Salted and dried plums. 
Sec. 1719. Television apparatus and parts. 
Sec. 1720. Casein. 
Sec. 1721. Tariff treatment of certain types of plywood. 
Sec. 1722. Importation of furskins. 
Sec. 1723. Grapefruit. 
Sec. 1724. Silicone resins and materials. 
SUBPART B—TEMPORARY CHANGES IN TARIFF TREATMENT 
Sec. 1731. Color couplers and coupler intermediates. 
102 STAT. 1110 
PUBLIC LAW 100-418—AUG. 23, 1988 
Sec. 1732. Potasdum i-Sulfobenzoate. 
Sec. 1733. 2,2<)xaimdobis[ethyl-3<3,5Hli-tert4)utyl-4-hydroxyphenyl)-propionate]. 
Sec. 1734. 2,4-Dicliloro-5.suifamoylben2oic acid. 
Sec. 1735. Derivatives of N-[4-(2-hydro3^-3-phenoxypropoxy)phenyl]acetanude. 
Sec 1736. Certain knitwear fabricated in Guam. 
Sec. 1737. 3,5-Dinitro-G-toluanude. 
Sec. 1738. Siecondaiy-butyi chloride. 
Sec. 1739. Certain nonbenzenoid vinyl aoetate-vinyl chloride-ethylene terpolymers. 
Sec. 1740. Duty-free entry of personal effects and equipment of participants and 
officiads involved in the 10th Pan American games. 
Sec. 1741. Carding and spinning machines. 
Sec. 1742. Dicofol and certain mixtures. 
Sec. 1743. Silk yam. 
Sec. 1744. Terfenadone. 
Sec. 1745. Fluazifop-p-butyl. 
Sec. 1746. Parts of indirect process electrostatic copying machines. 
Sec. 1747. Elxtracorporeal shock vrave iithotripters imported by nonprofit institu-
tions. 
Sec. 1748. Transparent plastic sheeting. 
Sec. 1749. Doll wig yams. 
Sec 1750. l-(3^ulfopropyl) pyridinium hydroxide. 
Sec. 1751. Polyvinylbenzyltrimethylammonium 
chloride 
(cholestyramine 
resin 
USP). 
Sec. 1752. Methylene blue. 
Sec. 1753. 3-Amin<>^methyM-butyne. 
Sec. 1754. Dicyclohexylbenzothiazylsulfenamide. 
Sec. 1755. D-6-methoxy-aHfnethyl-^naphthaleneacetic acid and its sodium salt 
Sec. 1756. Suspension of duties on jaoquard cards and jacquard heads. 
Sec 1757. 2^Bis(4-Cyanatophenyl). 
Sec. 1758. Phenylmethylaminopyrazole. 
Sec 1759. Benzethonium chloride. 
Sec. 1760. Maneb, zineb, mancozeb, and metiram. 
" 
Sec. 1761. Metaldehyde. 
Sec. 1762. Paraldehyde. 
Sec. 1763. Cyclosporine. 
Sec. 1764. Temporary reduction of duties on glass inners. 
Sec. 1765. Benzenoid dye intermediates. 
Sec. 1766. Tungsten ore. 
Sec 1767. Chlor amino base. 
Sec. 1768. Nitro sulfon B. 
Sec. 1769. 4-chloro-2-nitro aniline. 
Sec. 1770. Amino sulfon br. 
Sec. 1771. Acet quinone base. 
Sec. 1772. Diamino phenetole sulfate. 
Sec. 1773. Certain mixtures of cross-linked sodium polyacrylate poljmiers. 
Sec 1774. N-ethyl-o-toluenesulfonamide and n-ethyl-p-toluenesuuonamide. 
Sec. 1775. Sethoxydim. 
Sec 1776. 3-Ethylamino-p<TesoL 
Sec. 1777. Rosachloride lumps. 
Sec. 1778. Guanines. 
Sec. 1779. Diamino imid sp. 
Sec 1780. Certain stuffed toy figures. 
Sec. 1781. Kitchenware of transparent, nonglazed glass ceramics. 
Sec 1782. Hosiery knitting machines and needles. 
Sec 1783. Certain bicycle parts. 
Sec 1784. l,2-Dimethyl-3,5-diphenylpyrazolium methyl sulfate (difenzoquat methyl 
sulfate). 
Sec. 1785. Triallate. 
Sec. 1786. m-Nitro-p-anisidine. 
Sec. 1787. Dinocap and mixtures of dinocap and mancozeb. 
Sec 1788. m-Nitro-o-anisidine. 
Sec. 1789. p-Nitro-o4»luidine. 
Sec. 1790. Phenylcarbethoxypyrazolone. 
Sec 1791. p-Nitro-o-anisidine. 
Sec 1792. Caibodiimides. 
Sec. 1793. Triethylene glycol dichloride. 
Sec 1794. Mixtures of 5Hchloro-2-methyl-4-isothiazolin-3-one, 2-methyl-4-isothiazolin-
3-one, magnesium chloride, stsJsilizers and application adjuvants. 
Sec 1795. 2-n<X:tyl-4-isothiazolin-3-one, and on mixtures of 2-n-octyI-4-isothiazoUn-
3-one and application adjuvants. 
Sec. 17%. Weaving madiines for fabrics in excess of 16 feet widtli. 
vv^-"*-iivv'.r**'*aiBSS«f 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1111 
Sec. 1797. Barbituric acid. 
„>r^,,-
Sec. 1798. 3-Methyl-5-pyrazolone. 
Sec. 1799. 3-Methyl-l-(p-tolyl)-2-pyrazolin-5-one (p-tolyl methyl pyrazolone). 
Sec. 1800. Certain offset printing presses. 
Sec. 1801. Frozen cranberries. 
Sec. 1802. m-Hydroxybenzoic acid. 
Sec. 1803. Certain benzenoid chemicals. 
Sec. 1804. Extension of certain suspension provisions. 
SUBPART C—EFFECTIVE DATES 
Sec. 1831. Effective dates. 
PART 2—MISCELLANEOUS PROVISIONS 
Sec. 1841. Certain structures and parts used in the W.M. Keck Observatory project, 
Mauna Kea, Hawaii. 
Sec. 1842. Reliquidation of certain entries and refund of antidumping duties. 
Sec. 1843. Reliquidation of certain tubular tin products. 
Sec. 1844. Certain extracorporeal shock wave lithotripter imported for use in 
Hawaii. 
Sec. 1845. Extension of the filing period for reliquidation of certain entries. 
Subtitle H—Miscellaneous Customs and Trade Provisions 
PART 1—CUSTOMS PROVISIONS 
Sec. 1901. Enforcement of the restrictions against imported pornography. 
Sec. 1902. Tare on crude oil and petroleum products. 
Sec. 1903. Eligible articles under the gener^uized system of preferences. 
Sec. 1904. Customs bond cancellation standards. 
Sec. 1905. Customs services at Pontiac/Oakland, Michigan, Airport. 
Sec. 1906. Sense of Congress requesting the President to instruct the Secretary of 
the Treasury to enforce section 307 of the Tariff Act of 1930 without 
delay. 
Sec. 1907. Import marking provisions. 
Sec. 1908. Duty-free sales enterprises. 
Sec. 1909. Caribbean Basin Initiative. 
Sec. 1910. Ethyl alcohol and mixtures for fuel use. 
Sec. 1911. Enforcement of restrictions on imports from Cuba. 
Sec. 1912. Customs Forfeiture Fund. 
PART 2—MISCELLANEOUS TRADE PROVISIONS 
Sec. 1931. Trade statistics. 
Sec. 1932. Ac^ustment of trade statistics for inflation and deflation. 
Sec. 1933. Coal exports to Japan. 
Sec. 1934. Purch£i8es of United States-made automotive parts by Japan. 
Sec. 1935. Effect of imports on crude oil production and refining capacity in the 
United States. 
Sec. 1936. Study of trade barriers established by auto producing countries to auto 
imports and the impact on the United States market. 
Sec. 1937. Lamb meat imports. 
PART 3—OTHER PROVISIONS 
Sec. 1941. Windfall profit tax repeal. 
TITLE II—EXPORT ENHANCEMENT 
Sec. 2001. Short title. 
--r 
Subtitle A—Trade and Foreign Policy 
PART I—RELATIONS WFTH CERTAIN COUNTRIES 
Sec. 2101. United States-Mexico Framework Agreement on Trade and Investment. 
Sec. 2102. Relations with countries providing offensive weaponry to belligerent 
countries in the Persian Gulf region. 
PART II—FAIR TRADE IN AUTO PARTS 
Sec. 2121. Short title. 
Sec. 2122. Definition. 
\ 
Sec. 2123. Establishment of initiative on auto pai;ts sales to Japan. 
Sec. 2124. Establishment of special advisory committee on auto parts sales in 
Japan. 
Sec. 2125. Expiration date. 
102 STAT. 1112 
PUBLIC LAW 100-418—AUG. 23, 1988 
Subtitle B—Export Enhancement 
PART I—GENERAL PROVISIONS 
Sec. 2201. Commercial personnel at the American Institute of Taiwan. 
Sec. 2202. Country reports on economic policy and trade practices. 
Sec. 2203. Overseas Private Investment Corporation. 
Sec. 2204. Trade and Development Program. 
Sec. 2205. Barter and countertrade. 
Sec. 2206. Protection of United States intellectual property. 
Sec. 2207. Report on worker rights. 
Sec. 2208. Japanese importation of manufactured goods from less developed coun-
tries. 
Sec. 2209. Japan and the Arab boycott of Israel. 
Sec. 2210. Facilitation of jewelry trade. 
Sec. 2211. Loan guarantees. 
PART II—ASSISTANCE TO POLAND 
Sec. 2221. Short title. 
Sec. 2222. Funding for science and technology agreement. 
Sec. 2223. Donation of surplus agricultural commodities. 
Sec. 2224. Use of Polish currencies. 
Sec. 2225. Eligible activities. 
Sec. 2226. Joint commission. 
Sec. 2227. Provision of medical supplies and hospital equipment to Poland. 
Subtitle C—Export Promotion 
Sec. 2301. United States and Foreign Commercial Service. 
Sec. 2302. Commercial Service officers and multilateral development bank procure-
ment. 
Sec. 2303. Market development cooperator program. 
Sec. 2304. Trade shows. 
Sec. 2305. Authorization of appropriations for export promotion programs. 
Sec. 2306. United States and Foreign Commercial Service Pacific Rim initiative. 
Sec. 2307. Indian tribes export promotion. 
Sec. 2308. Printing at overseas locations. 
Sec. 2309. Local currencies under Public Law 480. 
Sec. 2310. Office of Export Trade. 
Sec. 2311. Report on export trading companies. 
Subtitle D—Export Controls 
Sec. 2401. Reference to the Export Administration Act of 1979. 
PART I—EXPORT CONTROLS GENERALLY 
Sec. 2411. Export license fees. 
Sec. 2412. Multiple license authority. 
Sec. 2413. Domestic sales to commercial entities of controlled countries. 
Sec. 2414. Authority for reexports. 
Sec. 2415. Exports to countries other than controlled countries. 
Sec. 2416. Control list. 
Sec. 2417. Trade shows. 
Sec. 2418. Foreign availability. 
Sec. 2419. Review of technology levels. 
Sec. 2420. Functions of technical advisory committees. 
Sec. 2421. Negotiations with COCOM. 
Sec. 2422. Goods containing microprocessors or certain other parts or components. 
Sec. 2423. Foreign policy controls. 
Sec. 2424. Exports of domestically produced crude oil. 
Sec. 2425. Procedures for license applications. 
Sec. 2426. Violations. 
Sec. 2427. Enforcement. 
Sec. 2428. Administrative procedure and judicial review. 
Sec. 2429. Responsibilities of the Under Secretary of Commerce for Export Adminis-
tration. 
Sec. 2430. Authorization of appropriations. 
Sec. 2431. Termination date. 
Sec. 2432. Monitoring of wood exports. 
Sec. 2433. Study on national security export controls. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1113 
PABT II—MULTILATERAL E^XFORT CONTROL ENHANCEMENT 
Sec. 2441. Short title. 
Sec. 2442. Findings. 
Sec. 2443. Mandatory sanctions against Toshiba and Kongsbeig. 
Sec. 2444. Mandatory sanctions for future violations. 
Sec. 2445. Annual report of defense impact. 
Sec. 2446. Improved multilateral cooperation. 
Sec. 2447. Technical and conforming amendments. 
Subtitle E—^Miscellaneous Provisions 
Sec. 2501. Trading With the Enemy Act 
Sec. 2502. Limitation on exercise of emeigency authorities. 
Sec. 2503. Budget Act. 
TITLE in—INTERNATIONAL FINANCIAL POUCY 
Subtitle A—^Exchange Rates and International Economic Policy Coordination 
Sec. 3001. Short title. 
Sec. 3002. Findings. 
Sec. 3003. Statement of policy. 
Sec. 3004. International negotiations on exchange rate and economic policies. 
Sec. 3005. Reporting requirements. 
Sec. 3006. D^nitions. 
Subtitle B—^International Dd)t 
PART I—^FINIHNGS, PURPOSES, AND STATEMENT OF POUCT 
Sec. 3101. Short title. 
Sec. 3102. Findings. 
Sec. 3103. Purposes. 
Sec. 3104. Statement of policy. 
PART II—THE INTERNATIONAL DEBT MANAGEMENT AUTHORITT 
Sec. 3111. International initiative. 
Sec. 3112. Actions to facilitate creation of the authority. 
Sec 3113. IMF-World Bank review. 
PART m—RBGULATMIT PROVISIONS AFFECTING INTERNATIONAL DEBT 
Sec 3121. Provisions relating to the regulation of depository institutioiis. 
Sec. 3122. Studies relating to the regulation of depositoiy institutions. 
Sec 3123. Limited purpose qiecial drawing rights for the poorest heavily inddbted 
countries. 
Subtitle C—^Multilateral Devel<qniient Banks 
Sec 3201. Short title. 
Sec. 3202. Multilateral development bank procurement. 
Subtitle D—Export-Import Bank and Tied Aid Credit Amendments 
Sec 3301. Siorttitle. 
Sec 3302. Provisions relating to tied aid credit. 
Sec 3303. R^wrt on United States exports to developing countries. 
Sec 3304. Ammdments to section 2(e) of the Export-Import Bank Act of 1945u 
Subtitle E—^Export Trading Company Act Amendments 
Sec 3401. Short title. 
Sec 3402. Export Trading Company Act Amendments. 
Subtitle F—^Primary Dealars 
Sec. 3501. Short title. 
Sec. 3502. Requiranent f>f national treatment in underwriting Govemmoit dd)t 
instruments. 
Subtitle G—^Financial Reports 
Sec. 3601. Short title. 
Sec 3602. Quadrennial rqmrts on foreign treatment of United States financial 
institutions. 
Sec. 3603. Fair trade in financial services. 
Sec 3604. Banks loan loss reserves. 
102 STAT. 1114 
PUBLIC LAW 100-418—AUG. 23, 1988 
TITLE IV-AGRICULTURAL TRADE 
Sec. 4001. Short title. 
Subtitle A—Findings, Policy, and Purpose 
Sec. 4101. Findings. 
Sec. 4102. Policy. 
Sec. 4103. Purpose. 
Subtitle B—Agricultural Trade Initiatives 
PART 1—GENERAL PROVISIONS 
Sec. 4201. Long-term agricultural trade strategy reports. 
Sec. 4202. Technical assistance in trade negotiations. 
Sec. 4203. Joint development assistance agreements with certain trading partners. 
Sec. 4204. Reorganization evaluation. 
Sec. 4205. Contracting authority to expand agricultural export markets. 
Sec. 4206. Establishment of trade sissistance office. 
PART 2—FOREIGN AGRICULTURAL SERVICE 
Sec. 4211. Personnel of the service. 
Sec. 4212. Agricultural attache educational program. 
Sec. 4213. Personnel resource time. 
Sec. 4214. Cooperator organizations. 
Sec. 4215. Authorization of additional appropriations. 
Subtitle C—Existing Agricultural Trade Programs 
Sec. 4301. Triggered marketing loans and export enhancement. 
Sec. 4302. Price support programs for sunflower seeds and cottonseed. 
Sec. 4303. Multiyear agreements under the Food for Progress Program. 
Sec. 4304. Targeted export assistance. 
Sec. 4305. Export Credit Guarantee Program. 
Sec. 4306. Agricultural Export Enhancement Program. 
Sec. 4307. Agricultural attache reports. 
Sec. 4308. Dairy Export Incentive Program. 
Sec. 4309. Barter of agricultural commodities. 
Sec. 4310. Minimum level of food assistance. 
Sec. 4311. Food aid and market development. 
Subtitle D—Wood and Wood Products 
Sec. 4401. Developing markets for wood and wood products under Public Law 480. 
Sec. 4402. Developing markets for wood and wood products under the Short-Term 
and Intermediate-Term Export Credit Guarantee Programs. 
Sec. 4403. Cooperative National Forest Products Marketing Program. 
Sec. 4404. Use &f Department of Agriculture programs. 
Subtitle E—Studies and Reports 
Sec. 4501. Study of Canadian wheat import licensing requirements. 
Sec. 4502. Import inventory. 
Sec. 4503. Study relating to honey. 
Sec. 4504. Study of dairy import quotas. 
* 
Sec. 4505. Report on intermediate export credit. 
Sec. 4506. Imported meat, poultry products, eggs, and egg products. 
Sec. 4507. Study of circumvention of agricultural quotas. 
Sec. 4508. Study of lamb meat imports. 
Sec. 4509. Rose study. 
Subtitle F—Miscellaneous Agricultural Provisions 
Sec. 4601. Allocation of certain milk. 
Sec. 4602. Paid advertising for Florida-grown strawberries under marketing orders. 
Sec. 4603. Application of marketing orders to imports. 
Sec. 4604. Reciprocal meat inspection requirement. 
Sec. 4605. Study of international marketing in land grant colleges and universities. 
Sec. 4606. International trade in eggs and egg products. 
Sec. 4607. United States access to the Korean beef market. 
Sec. 4608. United States access to Japanese agricultural markets. 
Sec. 4609. Sense of Congress relating to section 22. 
Sec. 4610. Technical corrections to the agricultural aid and trade mission portion of 
Public Law 100-202. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1115 
Subtitle G—Pesticide Monitoring Improvements 
Sec. 4701. Short title. 
Sec. 4702. Pesticide monitoring and enforcement information. 
Sec. 4703. Foreign pesticide information. 
Sec. 4704. Pesticide analytical methods. 
TITLE V—FOREIGN CORRUPT PRACTICES AMENDMENTS; INVESTMENT; r 
AND TECHNOLOGY 
Subtitle A—Foreign Corrupt Practices Act Amendments; Review of Certain 
Acquisitions 
PART I—FOREIGN CORRUPT PRACTICES ACT AMENDMENTS 
Sec. 5001. Short title. 
Sec. 5002. Penalties for violations of accounting standards. 
Sec. 5003. Foreign Corrupt Practices Act Amendments. 
PART II—REVIEW OF CERTAIN MERGERS, ACQUISITIONS, AND TAKEOVERS 
• 'J 
Sec. 5021. Authority to review certain mergers, acquisitions, and takeovers. 
Subtitle B—Technology 
PART I—TECHNOLOGY COMPETITIVENESS 
Sec. 5101. Short title. 
> 
SUBPART A—NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY 
Sec. 5111. Findings and purposes. 
Sec. 5112. Establishment, functions, and activities. 
Sec. 5113. Repeal of provisions. 
Sec. 5114. Reports to Congress; studies by the National Academies of Engineering 
and Sciences. 
Sec. 5115. Technical amendments. 
SUBPART B—TECHNOLOGY EXTENSION ACTIVITIES AND CLEARINGHOUSE ON STATE AND 
LOCAL INITIATIVES 
Sec. 5121. Technology extension activities. 
'' 
-
*
• 
Sec. 5122. Clearinghouse on State and local initiatives. 
SUBPART C—ADVANCED TECHNOLOGY PROGRAM 
Sec. 5131. Advanced technology. 
SUBPART D—TECHNOLOGY REVIEWS 
Sec. 5141. Report of President. 
fi; 
Sec. 5142. Semiconductor research and development. 
Sec. 5143. Review of research and development priorities in superconductors. 
SUBPART E—AUTHORIZATION OF APPROPRIATIONS 
Sec. 5151. Authorization of appropriations for technology activities. 
,_<{, 
Sec. 5152. Stevenson-Wydler Act authorizations. 
SUBPART F—MISCELLANEOUS TECHNOLOGY AND COMMERCE PROVISIONS 
Sec. 5161. Savings provision and user fees. 
Sec. 5162. Miscellaneous amendments to the Stevenson-Wydler Act. 
Sec. 5163. Miscellaneous technology and commerce provisions. 
Sec. 5164. Metric usage. 
' -
PART II—SYMMETRICAL ACCESS TO TECHNOLOGICAL RESEARCH 
Sec. 5171. Symmetrical access to technological research. 
PART III—NATIONAL CRITICAL MATERIALS COUNCIL 
Sec. 5181. The national Federal program plan for advanced materials research and 
development. 
Sec. 5182. Personnel matters. 
Sec. 5183. Authority to accept services and personnel from other Federal etgencies. 
Sec. 5184. Authorization of appropriations. 
Subtitle C—Competitiveness Policy Council Act 
Sec. 5201. Short title. 
. 
Sec. 5202. Findings and purposes. 
102 STAT. 1116 
PUBLIC LAW 100-418—AUG. 23, 1988 
Sec S203. Counca established. 
Sec. 5204. Duties of the CoundL 
Sec 5205. Iftanbership. 
Sec 5206. Executive Diiecfan- and staff. 
Sec 5207. Powers of the CoandL 
Sec 5208. Annual r^mrt. 
Sec 5209. Authorizatiimaf ai^n^niations. 
Sec 5210. Definitions. 
Subtitle D—Federal Budget Cnnpetitivimess Impact Statement 
Sec 5301. President's annual budget sulmilasion. 
Sec 5302. Annual concurrent restdutiMi on the budget. 
Sec 5303. Effective date. 
Subtitle E—Trade Data, Impact, and Studies 
PAST I—NATIONAI, TRAIW DATA BANK 
Sec 5401. D^mitirais. 
Sec 5402. Interagatcy IVade Data Advisory Committee. 
Sec 5403. Fimctimis^ the Committee. 
Sec 5404. Consultation witii the private sector and Government oCBdals. 
Sec 5405. Coc^ieration among Executive agencies. 
Sec 5406. EBtablidmmtt of the Data Bank. 
Sec 5407. Operation (
r
f
^ the Data Bank. 
Sec 5408. Ii^twniation on the service secbn-. 
Sec 5409. Exclusion (tf information. 
Sec 5410. N<mdupUcati(m. 
Sec 5411. Collection of data. 
Sec 5412. Fees and access. 
Sec 5413. Bqxnt to Congress. 
PAKT n—IMPACT STATKIIEMTB AND STUDDSB 
Sec 5^1. CmnpetitivoiesB impact stat^nents. 
Sec 5422. Study and rep(»t by the AdvisMy Council <m Fedravl Participation in Se-
matech. 
Sec 5423. Impact of nati<»al defimse expenditures on international competitive-
TTTLE VI—EDUCATION AND TRAINING FOR AlCERICAN COMPETITIVENESS 
Sec 600L Short title. 
Sec 6002. Findings and purpose. 
Sec 6003. Definitions. 
Sec 6004. General provisimis. 
Subtitie A—Eiemaatary and Secondary ESducatioa 
CBAPTBB. 1—MATHEMATICS AND SCIENCE 
Sec 6005. Mathematics and science educati<m reauthoriaed. 
C^APTEB 2—ADULT LREBACT 
Sec 6011. Workplace literacy partnerships grants. 
Sec 6012. English literaqr grants. 
Sec 6013. literacy coordination. 
Sec 6014. Applic^iUty provision. 
CbAPRB 3—FMOIGN LANGUAGES 
SUBCHAPIBR A-^OBEiGN LANGUAGE ASSISTANCB 
Sec 6021. aiort titie. 
Sec 6022. Findings. 
Sec 6023. Program authtKiaed. 
Sec 6024. Allotmrat. 
Sec 6025. Definitions. 
Sec 6026. Authoricatifm of appropriations. 
SUBCHAFTEK B—PSESIDBNTIAL AWAKD POK LANGUAGES 
Sec 6027. Presidmtial awards. 
Sec 6028. Administrative provisions. 
Sec 6029. Authwization of aqppropriations. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1117 
CHAPTER 4—SCIENCE AND MATHEMATICS ELEMENTARY AND SECONDARY BUSINESS 
-' 
PARTNERSHIPS 
Sec. 6031. Program authorized. 
CHAPTER 5—EDUCATIONAL PARTNERSHIPS 
Sec. 6041. Short title. 
Sec. 6042. Purpose. 
Sec. 6043. Program authorized. 
Sec. 6044. Authorized activities. 
Sec. 6045. Application. 
Sec. 6046. Approval of application. 
Sec. 6047. Computation of grant amounts. 
Sec. 6048. Evaluation and dissemination. 
Sec. 6049. Definitions. 
CHAPTER 6—STAR SCHOOI^ PROGRAM 
Sec. 6051. Pr<^am authorized. 
Sec. 6052. Applicability provision. 
CHAPTER 7—PROJECTS AND PROGRAMS DESIGNED TO ADDRESS SCHOOL DROPOUT 
PROBLEMS AND TO STRENGTHEN BASIC SKILLS INSTRUCTION 
SUBCHAPTER A—ASSISTANCE TO ADDRESS SCHOOL DROPOUT PROBLEMS 
Sec. 6061. Short title. 
Sec. 6062. Purpose. 
Sec. 6063. Authorization of appropriations. 
Sec. 6064. Grants to local educational agencies. 
Sec. 6065. Application. 
Sec. 6066. Authorized activities. 
Sec. 6067. Distribution of assistance; limitation on costs. 
SUBCHAPTER B—ASSISTANCE TO PROVIDE BASIC SKILLS IMPROVEMENT 
Sec. 6071. Short title. 
Sec. 6072. Purpose. 
Sec. 6073. Authorization of appropriations. 
Sec. 6074. Grants to local educational agencies. 
Sec. 6075. Authorized activities. 
Sec. 6076. Application. 
SUBCHAPTER C—GENERAL PROVISIONS 
Sec. 6081. General provisions. 
Sec. 6082. Definitions. 
CHAPTER 8—MISCELLANEOUS 
Sec. 6091. Drug-free schools program. 
Subtitle B—Technology and Training 
CHAPTER 1—TRANSFER OF EDUCATION AND TRAINING SOFTWARE 
Sec. 6101. Short title. 
Sec. 6102. Findings and purpose. 
Sec. 6103. OfRce of Training Technology Transfer. 
Sec. 6104. Functions of the Office. 
Sec. 6105. Administrative provisions. 
Sec. 6106. Coordination with Federal agencies. 
Sec. 6107. Authorization of appropriations. 
Sec. 6108. Definitions. 
CHAPTER 2—INSTRUCTIONAL PROGRAMS IN TECHNOLOGY EDUCATION 
Sec. 6111. Purpose. 
Sec. 6112. Technology education demonstration program. 
Sec. 6113. Applications for grants. 
Sec. 6114. National dissemination of information. 
Sec. 6115. Authorization of appropriations. 
Sec. 6116. Definitions. 
CHAPTER 3—REPUCATION OF TECHNICAL EDUCATION PROGRAMS 
Sec. 6121. Replication models for technical education programs designed to improve 
uie quality of education for America's technically trained workforce. 
102 STAT. 1118 
PUBLIC LAW 100-418—AUG. 23, 1988 
CHAPTER 4—^VOCATIONAL EDUCATION PROGRAMS 
Sec. 6131. Adult training, retraining, and employment development. 
Sec. 6132. Authorization of additions!! uses of vocational education funds. 
Sec. 6133. Education for employment demonstration program. 
Sec. 6134. Industry-education partnership authorization. 
Sec. 6135. Demonstration program for technological Uteracy. 
CHAPTERS—ACCESS DEMONSTRATION PROGRAMS 
Sec. 6141. Purpose. 
Sec. 6142. Program authorized. 
Sec. 6143. Applications. 
Sec 6144. Definitions. 
Subtitle C—Hi^er Education 
CHAPTER 1—STUDENT LITERACY CORPS 
Sec. 6201. Student literacy corps. 
CHAPTER 2—SPECIAL RESEARCH FACILITIES 
Sec. 6211. Agriculture, strat^c metals, minerals, forestry, and oceans college 
and university research facilities and instrumentation modernization 
program. 
CHAPTER 3—MINORTTT SCIENCB AND ENGINEERING IMPROVEMENT 
Sec 6221. Minority science and engineering improvement. 
CHAPTER 4—TECHNOLOGY TRANSFER CENTERS 
Sec 6231. Technology transfer centers. 
CHAPTER 5—LIBRARY TECHNOLOGY ENHANCEMENT 
Sec 6241. library technology enhancement. 
CHAPTER 6—INTERNATIONAL BUSINESS EDUCATION PROGRAM 
Sec. 6261. Centers for international business education authorized. 
Sec. 6262. Authorization of appropriations. 
Sec. 6263. Conforming amendment. 
CHAPTER 7—^ADDITIONAL HIGHER EDUCATION PROVISIONS 
Sec. 6271. Ronald E. McNair Post-Baccalaureate Achievement pn^gram. 
Sec. 6272. United States Institute of Peace. 
Subtitle D—Employment and Training for Dislocated Workers 
Sec 6301. Short title. 
Sec 6302. Amendment to title IQ of the Job Training Partnership Act. 
Sec. 6303. Authorization of appropriations. 
Sec 6304. Conforming amendments. 
Sec. 6305. Transition provisions. 
Sec. 6306. Studies. 
Sec. 6307. Job banks. 
SubtiUe E—^Natitmal Science Foundation University Infrastructure 
Sec. 6401. Short title. 
Sec. 6402. National Sdenoe Foundation Academic Research Facilities Moderniza-
tion Program. 
Sec 6403. National Science Foundation College Science Instrumentation Program. 
TITLE Vn—BUY AMERICAN ACT OF 1988 
Sec 7001. Short title. 
Sec 7002. Amendments to the Birv American Act. 
Sec. 7003. Procedures to prevent Government procurement discrimination. 
Sec 7004. Sunset provision. 
Sec 7005. Conforming amendments. 
TITLE Vra—SB4ALL BUSINESS 
Sec. 8001. Short title. 
Sec 8002. Declaration of policy. 
Sec 8003. Qianges in wTMAing Small Business Administration International Trade 
Office. 
^y!^-trgcg''w^ •
•
S
T
T
* ^^jw^wap^^'y-'y? * • •' 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1119 
Sec. 8004. Authorization of appropriations. 
Sec. 8005. Export financing provided by the Administration. 
Sec. 8006. Small Business Development Centers. 
Sec. 8007. Capital formation. 
Sec. 8008. Small Business Innovation Research. 
Sec. 8009. Globalization of production. 
-
Sec. 8010. Small business trade remedy assistance. 
Sec. 8011. National Seminar on Small Business Exports. 
Sec. 8012. Trade negotiations. 
Sec. 8013. Promulgation of regulations. 
Sec. 8014. Effective date. 
TITLE IX—PATENTS 
Subtitle A—Process Patents 
Sec. 9001. Short title. 
Sec. 9002. Rights of owners of patented processes. 
Sec. 9003. Infringement for importation, use, or sale. 
Sec. 9004. Damages for infringement. 
Sec. 9005. Presumption in certain infringement actions. 
Sec. 9006. Effective date. 
Sec. 9007. Reports to Congress. 
Subtitle B—Foreign Filing 
Sec. 9101. Increased effectiveness of patent law. 
Subtitle C—Patent Term Extension 
Sec. 9201. Patent term extension. 
Sec. 9202. Procedure. 
TITLE X—OCEAN AND AIR TRANSPORTATION 
Subtitle A—Foreign Shipping Practices 
Sec. 10001. Short title. 
Sec. 10002. Foreign laws and practices. 
Sec. 10003. Mobile trade fairs. 
Subtitle B—International Air Transportation 
Sec. 10011. Maximum period for taking action with respect to complaints. 
Sec. 10012. Views of the Department of Commerce and Office of the United States 
Trade Representative. 
Sec. 10013. Reporting on actions taken with respect to complaints. 
SEC. 2. LEGISLATIVE HISTORY OF H.R 3 APPLICABLE. 
(a) IN GENERAL.—Except as provided in subsection (b), the legisla-
tive history of a title, subtitle, part, subpart, chapter, subchapter, 
section, or other provision of the conference report to accompany 
H.R. 3 of the 100th Congress (H. Rept. 100-576) shall be treated 
(along with any other le^slative history developed by reason of this 
Act) as being the legislative history of the provision of this Act that 
has the same numerical or alphabetical designation as the provision 
of the conference report. 
O
b
) EXCEPTIONS.— 
(1) Subsection (a) does not apply to section 2424(a) of this Act. 
(2) The legislative history for subtitle F of title VI of the 
conference report to accompany H.R. 3 shall be treated as the 
legislative history for subtitle E of title VI of this Act. 
TITLE I—TRADE, CUSTOMS, AND TARIFF 
LAWS 
SEC. lOOL FINDINGS AND PURPOSES. 
19 USC 2901 
(a) FINDINGS.—The Congress finds that— 
"°*^ 
102 STAT. 1120 
PUBLIC LAW 100-418—AUG. 23, 1988 
(1) in the last 10 years there has arisen a new global economy 
in which trade, technological development, investment, and 
services form an integrated system; and in this system these 
activities afTect each other and the health of the United States 
economy; 
(2) the United States is confronted with a fundamental dis-
equilibrium in its trade and current account balances and a 
rapid increase in its net external debt; 
(3) such disequilibrium and increase are a result of numerous 
factors, including— 
(A) disparities between the macroeconomic policies of the 
major trading nations, 
(B) the large United States budget deficit, 
(C) instabilities and structural defects in the world mone-
tary system, 
(D) the growth of debt throughout the developing world, 
(E) structural defects in the world trading system and 
inadequate enforcement of trade agreement obligations, 
(F) governmental distortions and barriers, 
(G) serious shortcomings in United States trade pohcy, 
and 
(H) inadequate growth in the productivity and competi-
tiveness of United States firms and industries relative to 
their overseas competition; 
(4) it is essential, and should be the highest priority of the 
United States Grovemment, to pursue a broad array of domestic 
and international policies— 
(A) to prevent future declines in the United States econ-
omy and standards of living, 
(B) to ensure future stability in external trade of the 
United States, and 
(C) to guarantee the continued vitality of the techno-
logical, industrial, and agricultural base of the United 
States; 
(5) the President should be authorized and encouraged to 
negotiate trade agreements and related investment, financial, 
intellectual property, and services agreements that meet the 
standards set forth in this title; and 
(6) while the United States is not in a position to dictate 
economic policy to the rest of the world, the United States is in 
a position to lead the world and it is in the national interest for 
the United States to do so. 
(b) PURPOSES.—The purposes of this title are to— 
(1) authorize the n^otiation of reciprocal trade agreements; 
(2) strengthen United States trade laws; 
(3) improve the development and management of United 
States trade strat^y; and 
(4) through these actions, improve standards of living in the 
world. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1121 
Subtitle A—United States Trade Agreements 
PART 1—NEGOTIATION AND IMPLEMENTATION 
OF TRADE AGREEMENTS 
SEC. 1101. OVERALL AND PRINCIPAL TRADE NEGOTIATING OBJECTIVES 19 USC 2901. 
OF THE UNITED STATES. 
(a) OVERALL TRADE NEGOTIATING OBJECTIVES.—The overall trade 
negotiating objectives of the United States are to obtain— 
(1) more open, equitable, and reciprocal market access; 
(2) the reduction or elimination of barriers and other trade-
distorting policies and practices; and 
(3) a more effective system of international trading disciplines 
and procedures. 
(b) PRINCIPAL TRADE NEGOTIATING OBJECTIVES.— 
(1) DISPUTE SETTLEMENT.—The principal negotiating objectives 
of the United States with respect to dispute settlement are— 
(A) to provide for more effective and expeditious dispute 
settlement mechanisms and procedures; and 
(B) to ensure that such mechanisms within the GATT and 
GATT agreements provide for more effective and expedi-
tious resolution of disputes and enable better enforcement 
of United States rights. 
(2) IMPROVEMENT OF THE GATT AND MULTILATERAL TRADE NEGO-
TIATION AGREEMENTS.—The principal negotiating objectives of 
the United States regarding the improvement of GATT and 
multilateral trade negotiation agreement^ are— 
(A) to enhance the status of the GATT; 
(B) to improve the operation and extend the coverage of 
the GATT and such agreements and arrangements to 
products, sectors, and conditions of trade not adequately 
covered; and 
(C) to expand country participation in particular agree-
ments or arrangements, where appropriate. 
(3) TRANSPARENCY.—The principal negotiating objective of the . 
United States regarding transparency is to obtain broader ap-
plication of the principle of transparency and clarification of 
the costs and benefits of trade policy actions through the observ-
ance of open and equitable procedures in trade matters by 
Contracting Parties to the GATT. 
(4) DEVELOPING COUNTRIES.—The principal negotiating objec-
tives of the United States regarding developing countries are— 
(A) to ensure that developing countries promote economic 
development by assuming the fullest possible measure of 
responsibility for achieving and maintaining an open inter-
national trading system by providing reciprocal benefits 
and Eissuming equivalent obligations with respect to their 
import and export practices; and 
(B) to establish procedures for reducing nonreciprocal 
trade benefits for the more advanced developing countries. 
(5) CURRENT ACCOUNT SURPLUSES.—The principal negotiating 
objective of the United States regarding current account sur- 
/ 
pluses is to develop rules to address large and persistent global 
; 
current account imbalances of countries, including imbalances 
/ 
which threaten the stability of the international trading system, 
/ 
102 STAT. 1122 
PUBLIC LAW 100-418—AUG. 23, 1988 
by imposing greater responsibility on such countries to under-
take policy changes aimed at restoring current account 
equilibrium, including expedited implementation of trade agree-
ments where feasible and appropriate. 
(6) TRADE AND MONETARY COORDINATION.—The principal nego-
tiating objective of the United States regarding trade and mone-
tary coordination is to develop mechanisms to assure greater 
coordination, consistency, and cooperation between 
inter-
national trade and monetary systems and institutions. 
(7) AGRICULTURE.—The principal negotiating objectives of the 
United States with respect to agriculture are to achieve, on an 
expedited basis to the maximum extent fesisible, more open and 
fair conditions of trade in agricultural commodities by— 
(A) developing, strengthening, and clarifying rules for 
agricultural trade, including disciplines on restrictive or 
trade-distorting import and export practices; 
(B) increasing United States agricultural exports by 
eliminating barriers to trade (including transparent and 
nontransparent barriers) and reducing or eliminating the 
subsidization of agricultural production consistent with the 
United States policy of agricultural stabilization in cyclical 
and unpredictable markets; 
(C) creating a free and more open world agricultural 
trading system by resolving questions pertaining to export 
and other trade-distorting subsidies, market pricing and 
^
v 
market access and eliminating and reducing substantially 
other specific constraints to fair trade and more open 
market access, such as tariffs, quotas, and other nontariff 
practices, including unjustified ph3rtosanitary and sanitary 
restrictions; and 
(D) seeking agreements by which the major agricultural 
exporting nations agree to pursue policies to reduce exces-
sive production of agricultural commodities during periods 
of oversupply, with due regard for the fact that the United 
States already undertakes such policies, and without re-
course to arbitrary schemes to divide market shares among 
major exporting countries. 
(8) UNFAIR TRADE PRACTICES.—The principal negotiating objec-
tives of the United States with respect to unfair trade practices 
are— 
(A) to improve the provisions of the GATT and nontariff 
measure agreements in order to define, deter, discourage 
the persistent use of, and otherwise discipline unfair trade 
practices having adverse trade effects, including forms of 
subsidy and dumping and other practices not adequately 
covered such as resource input subsidies, diversionary 
dumping, dumped 
or subsidized 
inputs, and 
export 
targeting practices; 
(B) to obtain the application of similar rules to the treat-
ment of primary and nonprimary products in the Agree-
ment on Interpretation and Application of Articles VI, XVI, 
and XXIII of the GATT (relating to subsidies and counter-
vailing measures); and 
(C) to obtain the enforcement of GATT rules against— 
(i) state trading enterprises, and 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1123 
Copyrights. 
Patents and 
trademarks. 
(ii) the acts, practices, or policies of any foreign 
government which, as a practical matter, unreasonably 
require that— 
(I) substantial direct investment in the foreign 
countiy be made, 
(II) intellectual property be licensed to the for-
eign country or to any firm of the foreign country, 
or 
(III) other collateral concessions be made, 
as a condition for the importation of any product or 
service of the United Stat^ into the foreign country or 
as a condition for carrying on business in the foreign 
country. 
(9) TRADE IN SERVICES.— 
(A) The principal n^otiating objectives of the United 
States r^arding trade in services are— 
(i) to reduce or to eliminate barriers to, or other 
distortions of, international trade in services, including 
barriers that deny national treatment and restrictions 
on establishment and operation in such markets; and 
(ii) to develop internationally agreed rules, including 
dispute settlement procedures, which— 
(I) are consistent with the commercial policies of 
the United States, and 
(II) will reduce or eliminate such barriers or 
distortions, 
and 
help 
ensure 
fair, 
equitable 
opportunities for foreign markets. 
(B) In pursuing the negotiating objectives described in 
subparagraph (A), United States n^otiators shall take into 
account legitimate United States domestic objectives 
including, but not limited to, the protection of Intimate 
health 
or 
safety, 
essential 
security, 
environmental, 
consumer or employment opportunity interests and the law 
and regulations related thereto. 
(10) 
INTELLECTUAL PROPERTY.—The principal 
n^otiating 
objectives of the United States r^arding intellectual property 
are— 
(A) to seek the enactment and effective enforcement by 
foreign countries of laws which— 
(i) recognize and adequately protect intellectual prop- Computers 
erty, including copyr^hts, patents, trademarks, semi-
conductor chip layout designs, and trade secrets, and 
(ii) provide protection against unfair competition, 
(B) to establish in the GATT obligations— 
(i) to implement adequate substantive standards 
based on— 
C
D the standards in existing international agree-
ments that provide adequate protection, and 
(ID the standards in national laws if inter-
national agreement standards are inadequate or do 
; 
not exist, 
(ii) to establish effective procedures to enforce, both 
.^ 
internally and at the border, the standards imple-
mented under clause (i), and 
(iii) to implement effective dispute settlement proce-
dures that improve on existing GATT procedures; 
(Q to recognize that the inclusion in the GATT of— 
CopjT-ights. 
Patents and 
trademarks. 
102 STAT. 1124 
PUBLIC LAW 100-418—AUG. 23, 1988 
(i) adequate and effective substantive norms and 
standards for the protection and enforcement of 
intellectual property rights, and 
(ii) dispute settlement provisions and enforcement 
procedures, 
is without prejudice to other complementary initiatives 
undertaken in other international organizations; and 
(D) to supplement and strengthen standards for protec-
tion and enforcement in existing international intellectual 
property conventions administered by other international 
organizations, including their expansion to cover new and 
emerging technologies and elimination of discrimination or 
unreasonable exceptions or preconditions to protection. 
(11) FOREIGN DIRECT INVESTMENT.— 
(A) The principal negotiating objectives of the United 
States regarding foreign direct investment are— 
(i) to reduce or to eliminate artificial or trade-distort-
ing barriers to foreign direct investment, to expand the 
principle of national treatment, and to reduce un-
reasonable barriers to establishment; and 
(ii) to develop internationally agreed rules, including 
dispute settlement procedures, which— 
(I) will help ensure a free flow of foreign direct 
investment, and 
(II) will reduce or eliminate the trade distortive 
effects 
of 
certain 
trade-related 
investment 
measures. 
(B) In pursuing the negotiating objectives described in 
subparagraph (A), United States negotiators shall take into 
account legitimate United States domestic 
objectives 
including, but not limited to, the protection of legitimate 
health 
or 
safety, 
essential 
security, 
environmental, 
consumer or employment opportunity interests and the law 
and regulations related thereto. 
(12) SAFEGUARDS.—The principal negotiating objectives of the 
United States regarding safeguards are— 
(A) to improve and expand rules and procedures covering 
safeguard measures; 
(B) to ensure that safeguard measures are— 
(i) transparent, 
(ii) temporary, 
(iii) degressive, and 
(iv) subject to review and termination when no longer 
necessary to remedy injury and to facilitate adjust-
ment; and 
(C) to require notification of, and to monitor the use by, 
GATT (Contracting Parties of import relief actions for their 
domestic industries. 
(13) SPECIFIC BARRIERS.—The principal negotiating objective of 
the United States regarding specific barriers is to obtain 
competitive opportunities for United States exports in foreign 
markets substantially equivalent to the competitive opportuni-
ties afforded foreign exports to United States markets, includ-
ing the reduction or elimination of specific tariff and nontariff 
trade barriers, particularly— 
'S-MXam--'-
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1125 
(A) measures identified in the annual report prepared 
under section 181 of the Trade Act of 1974 (19 U.S.C. 2241); 
and 
(B) foreign tariffs and nontariff barriers on competitive 
United States exports when like or similar products enter 
the United States at low rates of duty or are duty-free, and 
other tariff disparities that impede access to particular 
export markets. 
(14) WORKER RIGHTS.—^The principal n^otiating objectives of 
the United States r^arding worker rights are— 
(A) to promote respect for worker rights; 
(B) to secure a review of the relationship of worker rights 
to GATT articles, objectives, and related instruments with a 
view to ensuring that the benefits of the trading system are 
available to all workers; and 
(C) to adopt, as a principle of the GATT, that the denial of 
worker rights should not be a means for a country or its 
industries to gain competitive advantage in international 
trade. 
(15) ACCESS TO HIGH TECHNOLOGY.— 
(A) The principal n^otiating objective of the United 
States r^arding access to h^h technology is to obtain the 
elimination or reduction of foreign barriers to, and acts, 
policies, or practices by foreign governments which limit, 
equitable access by United States persons to foreign-
developed technoli^, including barriers, acts, policies, or 
practices which have the effect of— 
(i) restricting the participation of United States 
persons in government-supported research and develop-
ment projects; 
(ii) denying equitable access by United States persons 
to government-held patents; 
(iii) requiring the approval or agreement of govern-
ment entities, or imposing other forms of government 
interventions, as a condition for the granting of li-
censes to United States persons by foreign persons 
(except for approval or agreement which may be nec-
essary for national security purposes to control the 
export of critical military technology); and 
(iv) otherwise denying equitable access by United 
States persons to foreign-developed technology or 
contributing to the inequitable flow of technology be-
tween the United States and its trading partners. 
(B) In pursuing the n^otiating objective described in 
subparagraph (A), the United States n^otiators shall take 
into account United States Government policies in licensing 
or otherwise making available to foreign persons tech-
nology and other information developed by United States 
laboratories. 
(16) BORDER TAXES.—The principal negotiating objective of the 
United States r^arding border taxes is to obtain a revision of 
the GATT with respect to the treatment of border adjustments 
for internal taxes to redress the disadvantage to countries 
relying primarily for revenue on direct taxes rather than in-
direct taixes. 
Research and 
development. 
Patents and 
trademarks. 
102 STAT. 1126 
PUBLIC LAW 100-418—AUG. 23, 1988 
19 use 2902. 
SEC. 1102. TRADE AGREEMENT NEGOTIATING AUTHORITY. 
(a) AGREEMENTS REGARDING TARIFF BARRIERS.— 
(1) Whenever the President determines that one or more 
existing duties or other import restrictions of any foreign coun-
try or the United States are unduly burdening and restricting 
the foreign trade of the United States and that the purposes, 
policies, and objectives of this title will be promoted thereby, the 
President— 
(A) before June 1, 1993, may enter into trade agreements 
with foreign countries; and 
(B) may, subject to paragraphs (2) through (5), proclaim— 
(i) such modification or continuance of any existing 
duty, 
(ii) such continuance of existing duty-free or excise 
treatment, or 
(iii) such additional duties; 
as he determines to be required or appropriate to carry out 
• •^ 
any such trade agreement. 
(2) No proclamation may be made under subsection (a) that— 
(A) reduces any rate of duty (other than a rate of duty 
that does not exceed 5 percent ad valorem on the date of 
"df 
enactment of this Act) to a rate which is less than 50 
percent of the rate of such duty that applies on such date of 
enactment; or 
(B) increases any rate of duty above the rate that applies 
on such date of enactment. 
(3XA) Except as provided in subparsigraph (B), the aggregate 
reduction in the rate of duty on any article which is in effect on 
any day pursuant to a trade agreement entered into under 
paragraph (1) shall not exceed the aggr^ate reduction which 
would have been in effect on such day if a reduction of 3 percent 
ad valorem or a reduction of one-tenth of the total reduction, 
whichever is greater, had taken effect on the effective date of 
the first reduction proclaimed in paragraph (1) to carry out such 
agreement with respect to such article. 
(B) No staging under subparagraph (A) is required with re-
spect to a rate reduction that is proclaimed under paragraph (1) 
for an article of a kind that is not produced in the United 
States. The United Stat^ International Trade Commission shall 
advise the President of the identity of articles that may be 
exempted from staging under this subparagraph. 
(4) If the President determines that such action will simplify 
the computation of reductions under paragraph (3), the Presi-
dent may roimd an annual reduction by the lesser of^ 
(A) the difference between the reduction without r^ard 
to this paragraph and the next lower whole number; or 
(B) one-half of 1 percent ad valorem. 
(5) No reduction in a rate of duty under a trade agreement 
entered into under subsection (a) on any article may take effect 
more than 10 years after the effective date of the first reduction 
under paragraph (1) that is proclaimed to carry out the trade 
agreement with respect to such article. 
(6) A rate of duty reduction or increase that may not be 
proclaimed by reason of paragraph (2) may take effect only if a 
provision authorizing such reduction or increase is included 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1127 
within an implementing bill provided for under section 1103 
and that bill is enacted into law. 
(h) AGREEMENTS REGARDING NONTARIFF BARRIERS.— 
(1) Whenever the President determines that any barrier to, or 
other distortion of, international trade— 
(A) unduly burdens or restricts the foreign trade of the 
United States or adversely affects the United States econ-
omy; or 
(B) the imposition of any such barrier or distortion is 
likely to result in such a burden, restriction, or effect; 
and that the purposes, policies, and objectives of this title will 
be promoted thereby, the President may, before June 1, 1993, 
enter into a trade agreement with foreign countries providing 
for— 
(i) the reduction or elimination of such barrier or other 
distortion; or 
(ii) the prohibition of, or limitations on the imposition of, 
such barrier or other distortion. 
(2) A trade agreement may be entered into under this subsec-
tion only if such agreement makes progress in meeting the 
applicable objectives described in section 1101. 
(c) BILATERAL AGREEMENTS REGARDING TARIFF AND NONTARIFF 
BARRIERS.— 
(1) Before June 1,1993, the President may enter into bilateral 
trade agreements with foreign countries that provide for the 
elimination or reduction of any duty imposed by the United 
States. A trade agreement entered into under this paragraph 
may also provide for the reduction or elimination of barriers to, 
or other distortions of, the international trade of the foreign 
country or the United States. 
(2) Notwithstanding any other provision of law, no trade 
benefit shall be extended to any country by reason of the 
extension of any trade benefit to another country under a trade 
agreement entered into under paragraph (1) with such other 
country. 
(3) A trade agreement may be entered into under paragraph 
(1) with any foreign country only if— 
(A) the agreement makes progress in meeting the ap-
plicable objectives described in section 1101; 
(B) such foreign country requests the negotiation of such 
an agreement; and 
(C) the President, at least 60 days before the date notice is 
^ 
provided under section 1103(a)(1)(A)— 
(i) provides written notice of such negotiations to the 
Committee on Finance of the Senate and the Commit-
tee on Ways and Means of the House of Representa-
tives, and 
(ii) consults with such committees regarding the 
negotiation of such agreement. 
(4) The 60-day period of time described in paragraph (3XB) 
shall be computed in accordance with section 1103(f). 
(5) In any case in which there is an inconsistency between any 
provision of this Act and any bilateral free trade area agree-
ment that entered into force and effect with respect to the 
United States before January 1, 1987, the provision shall not 
apply with respect to the foreign country that is party to that 
agreement. 
102 STAT. 1128 
PUBLIC LAW 100-418—AUG. 23, 1988 
(d) CONSULTATION WITH CONGRESS BEFORE AGREEMENTS ENTERED 
INTO.— 
President of U.S. 
(1) Before the President enters into any trade agreement 
under subsection (b) or (c), the President shall consult with— 
(A) the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the 
Senate; and 
(B) each other committee of the House and the Senate, 
and each joint committee of the Congress, which has juris-
diction over legislation involving subject matters which 
would be affected by the trade agreement. 
(2) The consultation under paragraph (1) shall include— 
(A) the nature of the agreement; 
(B) how and to what extent the agreement will achieve 
the applicable purposes, policies, and objectives of this title; 
and 
(C) all matters relating to the implementation of the 
agreement under section 1103. 
(3) If it is proposed to implement two or more trade agree-
ments in a single implementing bill under section 1103, the 
consultation under paragraph (1) shall include the desirability 
and feasibility of such proposed implementation. 
19 use 2903. 
SEC. 1103. IMPLEMENTATION OF TRADE AGREEMENTS. 
(a) IN GENERAL.— 
President of U.S. 
(1) Any agreement entered into under section 1102 Ot)) or (c) 
shall enter into force with respect to the United States if (and 
only if)— 
Federal 
(A) the President, at least 90 calendar days before the day 
'^^^*®^' 
on which he enters into the trade agreement, notifies the 
publication. 
House of Representatives and the Senate of his intention to 
enter into the agreement, and promptly thereafter pub-
lishes notice of such intention in the Federal Register; 
(B) after entering into the agreement, the President sub-
mits a document to the House of Representatives and to the 
Senate containing a copy of the final legal text of the 
agreement, together with— 
(i) a dr£^t of an implementing bill, 
(ii) a statement of any administrative action proposed 
to implement the trade agreement, and 
(iii) the supporting information described in para-
graph (2); and 
(C) the implementing bill is enacted into law. 
(2) The supporting information required under paragraph 
dXBXiii) consists of— 
(A) an explanation as to how the implementing bill and 
proposed administrative action will change or affect exist-
ing law; and 
(B) a statement— 
(i) £isserting that the agreement makes progress in 
achieving the applicable purposes, policies, and objec-
tives of this title, 
(ii) setting forth the reasons of the President regard-
ing— 
(I) how and to what extent the agreement makes 
progress in achieving the applicable purposes, poli-
cies, and objectives referred to in clause (i), and 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1129 
why and to what extent the agreement does not 
achieve other applicable purposes, policies, and 
objectives, 
(II) how the agreement serves the interests of 
United States commerce, and 
(in) why the implementing bill and proposed 
administrative action is required or appropriate to 
carry out the agreement; 
(iii) describing the efforts made by the President to 
obtain international exchange rate equilibrium and 
any effect the agreement may have r^arding increased 
international monetary stabUity; and 
(iv) describing the extent, if any, to which— 
(I) each foreign country that is a party to the 
agreement maintains non-commercial state trad-
ing enterprises that may adversely affect, nullify, 
or impair the benefits to the United States under 
the agreement, and 
(Q) the agreement applies to or affects purchases 
and sales by such enterprises. 
(3) To ensure that a foreign country which receives benefits President of U.S. 
under a trade agreement entered into under section 1102 (b) or 
(c) is subject to the obligations imposed by such agreement, the 
President shall reconmoiend to Congress in the implementing 
bill and statement of administrative action submitted with 
respect to such agreement that the benefits and obligations of 
such agreement apply solely to the parties to such agreement, if 
such appUcation is consistent with the terms of such agreement. 
The President may also reconmiend with respect to any such 
agreement that the benefits and obligations of such agreement 
not apply uniformly to all parties to such agreement, if such 
application is consistent with the terms of such agreement. 
(b) APPLICATION OF CONGRESSIONAL "FAST TRACK" PROCEDURES TO 
IMPLEMENTING BILLS.— 
(1) Except as provided in subsection (c)— 
(A) the provisions of section 151 of the Trade Act of 1974 
(19 U.S.C. 2191) (hereinafter in this section referred to as 
"fast track procedures") apply to implementing bills 
submitted with respect to trade agreements entered into 
under section 1102 (b) or (c) before June 1, 1991; and 
(B) such fast track procedures shall be extended to im-
plementing bills submitted with respect to trade agree-
ments entered into under section 1102 (b) or (c) after May 
31,1991, and before June 1,1993, if (and only if)— 
(i) the President requests such extension under para-
graph (2); and 
(ii) neither House of the Congress adopts an exten-
sion disapproval resolution under paragraph (5) before 
June 1,1991. 
(2) If the President is of the opinion that the fast track President of U.S. 
procedures should be extended to implementing bills described Reports. 
in paragraph (1)(B), the President must submit to the (Dongress, 
no later than March 1, 1991, a written report that contains a 
request for such extension, together with— 
(A) a description of all trade agreements that have been 
n^otiated under section 1102 (b) or (c) and the anticipated 
102 STAT. 1130 
PUBLIC LAW 100-418—AUG. 23, 1988 
President of U.S. 
Reports. 
Reports. 
schedule for submitting such agreements to the Congress 
for approval; 
(B) a description of the progress that has been made in 
multilateral and bilateral negotiations to achieve the pur-
poses, policies, and objectives of this title, and a statement 
that such progress justifies the continuation of negotiations; 
and 
(C) a statement of the reasons why the extension is 
needed to complete the negotiations. 
(3) The President shall promptly inform the Advisory 
Committee for Trade Policy and Negotiations established under 
section 135 of the Trade Act of 1974 (19 U.S.C. 2155) of his 
decision to submit a report to Congress under paragraph (2). 
The Advisory Committee shall submit to the Congress as soon 
as practicable, but no later than March 1,1991, a written report 
that contains— 
(A) its views regarding the progress that has been made 
in multilateral and bilateral negotiations to achieve the 
purposes, policies, and objectives of this title; and 
(B) a statement of its views, and the reasons therefor, 
regarding whether the extension requested under para-
graph (2) should be approved or disapproved. 
(4) The reports submitted to the Congress under paragraphs 
(2) and (3), or any portion of the reports, may be classified to the 
extent the President determines appropriate. 
(5XA) For purposes of this subsection, the term "extension 
disapproval resolution" means a resolution of either House of 
the Congress, the sole matter after the resolving clause of which 
is as follows: "That the 
disapproves the request of 
the President for the extension, under section 1103(bXlXBXi) of 
the Omnibus Trade and Competitiveness Act of 1988, of the 
provisions of section 151 of the Trade Act of 1974 to any 
implementing bill submitted with respect to any trade agree-
ment entered into under section 1102 (b) or (c) of such Act after 
May 31, 1991, because sufficient tangible progress has not been 
made in trade negotiations.", with the blank space being filled 
with the name of the resolving House of the Congress. 
(B) Extension disapproval resolutions— 
(i) may be introduced in either House of the Congress by 
any member of such House; and 
(ii) shall be jointly referred, in the House of Representa-
tives, to the Committee on Ways and Means and the 
Committee on Rules. 
(C) The provisions of section 152 (d) and (e) of the Trade Act of 
1974 (19 U.S.C. 2192 (d) and (e)) (relating to the fioor consider-
ation of certain resolutions in the House and Senate) apply to 
extension disapproval resolutions. 
(D) It is not in order for— 
(i) the Senate to consider any extension disapproval reso-
lution not reported by the Committee on Finance; 
(ii) the House of Representatives to consider any exten-
sion disapproval resolution not reported by the Committee 
on Ways and Means and the Committee on Rules; or 
(iii) either House of the Congress to consider an extension 
disapproval resolution that is reported to such House after 
May 15,1991. 
(c) LIMITATIONS ON USE OF "FAST TRACK" PROCEDURES.— 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1131 
dXA) The fast track procedures shall not apply to any im-
plementing bill submitted with respect to a trade agreement 
entered into under section 1102 0)) or (c) if both Houses of the 
Congress separately agree to procedural disapproval resolutions 
within any 60-day period. 
(B) Procedural d^pproval resolutions— 
(i) in the House of Representatives— 
(I) shall be introduced by the chairman or ranking 
minority member of the Committee on Wa)rs and 
Means or the chairman or ranking minority member of 
the Committee on Rules, 
(II) shall be jointly referred to the Committee on 
Ways and Means and the Committee on Rules, and 
(HI) may not be amended by either Committee; and 
(ii) in the Senate shall be original resolutions of the 
Committee on Finance. 
(C) The provisions of section 152 (d) and (e) of the Trade Act of 
1974 (19 U.S.C. 2192 (d) and (e)) (relating to the floor consider-
ation of certain resolutions in the House and Senate) apply to 
procedural disapproval resolutions. 
CD) It is not in order for the House of Representatives to 
consider any procedural disapproval resolution not reported by 
the (Committee on Ways and Means and the (Ik)mmittee on 
Rules. 
(E) For purposes of this subjection, the term "procedural 
disapproval resolution" means a resolution of either House of 
the Congress, the sole matter after the resolving clause of which 
is as follows: "That the President has failed or refused to 
consult with (Congress on trade n^otiations and trade agree-
ments in accordance with the provisions of the Omnibus Trade 
and Competitiveness Act of 1988, and, therefore, the provisions 
of section 151 of the Trade Act of 1974 shall not apply to any 
implementing bill submitted with respect to any trade agree-
ment entered into under section 1102 (b) or (c) of such Act of 
1988, if, during the 60-day period b^inning on the date on 
which this resolution is agreed to by the 
, the 
agrees to a procedural disapproval resolution 
(within the meaning of section 1103(cXlXE) of such Act of 
1988).", with the first blank space being filled with the name of 
the resolving House of the (Congress and the second blank space 
being filled with the name of the other House of the (Dongress. 
(2) The fast track procedures shall not apply to any im-
plementing bill that contains a provision approving of any trade 
agreement which is entered into under section 1102(c) with any 
foreign country if either— 
(A) the requirements of section 1102(cX3) are not met with 
respect to the n^otiation of such agreement; or 
(B) the Committee on Finance of the Senate or the 
Committee on Ways and Means of the House of Representa-
tives disapproves of the negotiation of such agreement 
before the close of the 60-day period which begins on the 
date notice is provided under section 1102(cX3XCXi) with 
respect to the negotiation of such agreement. 
(d) RULES OF HOUSE OF REPRESENTATIVES AND SENATE.—Subsec-
tions (b) and (c) are enacted by the C!ongress— 
(1) as an exercise of the rulemaking power of the House of 
Representatives and the Senate, respectively, and as such is 
102 STAT. 1132 
PUBLIC LAW 100-418—AUG. 23, 1988 
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 full recognition of the constitutional right of 
either House to change the rules (so far as relating to the 
procedures of that House) at any time, in the same manner, and 
to the same extent as any other rule of that House. 
(e) COMPUTATION OF CERTAIN PERIODS OF TIME.—Each period of 
time described in subsection (cXl) (A) and (E) and (2) of this section 
shall be computed without regard to— 
(1) the days on which either House of Congress is not in 
session because of an adjournment of more than 3 days to a day 
certain or an adjournment of the Congress sine die; and 
(2) any Saturday and Sunday, not excluded under paragraph 
(1), when either House of the Congress is not in session. 
SEC. 1104. COMPENSATION AUTHORITY. 
Section 123 of the Trade Act of 1974 (19 U.S.C. 2133) is amended— 
(1) by amending subsection (a) to read as follows: 
"(a) Whenever— 
"(1) any action taken under chapter 1 of title II or chapter 1 of 
title III; or 
"(2) any judicial or administrative tariff reclassification that 
becomes final after the date of the enactment of the Omnibus 
Trade and Competitiveness Act of 1988; 
increases or imposes any duty or other import restriction, the 
President— 
"(A) may enter into trade agreements with foreign countries 
or instrumentalities for the purpose of granting new concessions 
as compensation in order to maintain the general level of 
reciprocal and mutually advantageous concessions; and 
"(B) may proclaim such modification or continuance of any 
existing duty, or such continuance of existing duty-free or excise 
treatment, as he determines to be required or appropriate to 
carry out any such agreement."; 
(2) by amending subsection (b)(2) by— 
(A) striking out "section 109" and inserting "section 
1102(a) of the Omnibus Trade and Competitiveness Act of 
1988", and 
(B) striking out "section 101" each place it appears and 
inserting "such section 1102(a)"; 
(3) by striking out "section 101" in subsection (d) and insert-
ing "section 1102 of the Omnibus Trade and Competitiveness 
Act of 1988"; and 
(4) by adding at the end thereof the following new subsection: 
"(e) The provisions of this section shall apply by reason of action 
taken under chapter 1 of title III only if the President determines 
that action authorized under this section is necessary or appropriate 
to meet the international obligations of the United States.". 
19 u s e 2904. 
SEC. 1105. TERMINATION AND RESERVATION AUTHORITY; RECIPROCAL 
NONDISCRIMINATORY TREATMENT. 
(a) IN GENERAL.—For purposes of applying sections 125, 126(a), 
and 127 of the Trade Act of 1974 (19 U.S.C. 2135, 2136(a), and 2137)— 
(1) any trade agreement entered into under section 1102 shall 
be treated as an agreement entered into under section 101 or 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1133 
102, as appropriate, of the Trade Act of 1974 (19 U.S.C. 2111 or 
2112); and 
(2) any proclamation or Executive order issued pursuant to a 
trade agreement entered into under section 1102 shall be 
treated as a proclamation or Executive order issued pursuant to 
a trade agreement entered into under section 102 of the Trade 
Act of 1974. 
O
t
)
) RECIPROCAL NONDISCRIMINATORY TREATMENT.— 
(1) The President shall determine, before June 1, 1993, 
whether any major industrial country has failed to make 
concessions under trade agreements entered into under section 
1102 (a) and (b) which provide competitive opportunities for the 
commerce of the United States in such country substantially 
equivalent to the competitive opportunities, provided by conces-
sions made by the United States under trade agreements en-
tered into under section 1102 (a) and OJ), for the commerce of 
such country in the United States. 
(2) If the President determines under paragraph (1) that a 
major industrial country has not made concessions under trade 
agreements entered into under section 1102 (a) and 0)) which 
provide substantially equivalent competitive opportunities for 
the commerce of the United States, the President shall, either 
generally with respect to such country or by article produced by 
such country, in order to restore equivalence of competitive 
opportunities, recommend to the Congress— 
(A) legislation providing for the termination or denial of 
the benefits of concessions of trade agreements entered into 
under section 1102 (a) and O
t
>
) that have been made with 
respect to rates of duty or other import restrictions imposed 
by the United States, and 
(B) legislation providing that any law necessary to carry 
out any trade agreement under section 1102 (a) or 0)) not 
apply to such country. 
(3) For purposes of this subsection, the term "major industrial 
country" means Canada, the European Communities, the 
individual member countries of the European Communities, 
Japan, and any other foreign country designated by the Presi-
dent for purposes of this subsection. 
President of U.S. 
SEC. 1106. ACCESSION OF STATE TRADING REGIMES TO THE GENERAL 19 USC 2905. 
AGREEMENT ON TARIFFS AND TRADE. 
(a) IN GENERAL.—Before any major foreign country accedes, after President of U.S. 
the date of enactment of this Act, to the GATT the President shall 
determine— 
(1) whether state trading enterprises account for a significant 
share of— 
(A) the exports of such major foreign country, or 
(B) the goods of such major foreign country that are 
subject to competition from goods imported into such for-
eign country; and 
(2) whether such state trading enterprises— 
(A) unduly burden and restrict, or adversely affect, the 
foreign trade of the United States or the United States 
economy, or 
(B) are likely to result in such a burden, restriction, or 
effect. 
19-194 O—91—Part 2 
5 : OT. .1 
102 STAT. 1134 
PUBLIC LAW 100-418—AUG. 23, 1988 
(b) EFFECTS OF AFFIRMATIVE DETERMINATION.—If both of the deter-
minations made under paragraphs (1) and (2) of subsection (a) with 
respect to a major foreign country are affirmative— 
President of U.S. 
(1) the President shall reserve the right of the United States 
to withhold extension of the application of the GATT, between 
the United States and such major foreign country, and 
(2) the GATT shall not apply between the United States and 
such major foreign country until— 
(A) such foreign country enters into an agreement with 
the United States providing that the state trading enter-
prises of such foreign country— 
(i) will— 
(I) make purchases which are not for the use of 
such foreign country, and 
(II) make sales in international trade, 
in accordance with commercial considerations (includ-
ing price, quality, avgiilability, marketabihty, and 
transportation), and 
(ii) will afford United States business firms adequate 
opportunity, in accordance with customary practice, to 
compete for participation in such purchases or sales; or 
(B) a bill submitted under subsection (c) which approves 
of the extension of the application of the GATT between the 
United States and such major foreign country is enacted 
into law. 
(c) EXPEDITED CONSIDERATION OF BILL TO APPROVE EXTENSION.— 
(1) The President may submit to the Congress any draft of a 
bill which approves of the extension of the application of the 
GATT between the United States and a major f o r e ^ country. 
(2) Any draft of a bill described in paragraph (1) that is 
submitted by the President to the Congress shall— 
(A) be introduced by the majority leader of each House of 
the Congress (by request) on the first day on which such 
House is in session after the date such draft is submitted to 
the Congress; and 
(B) shall be treated as an implementing bill for purposes 
of subsections (d), (e), (f), and (g) of section 151 of the Trade 
Act of 1974. 
President of U.S. 
(d) PUBLICATION.—The President shall publish in the Federal 
Federal 
Register each determination made under subsection (a). 
publication. 
SEC. 1107. DEFINITIONS AND CONFORMING AMENDMENTS. 
19 use 2906. 
(^) DEFINITIONS.-For purposes of this part: 
(1) The term "distortion" includes, but is not limited to, a 
subsidy. 
(2) The term 
"forei^ 
country" includes any 
foreign 
instrumentality. Any territory or possession of a foreign coun-
try that is administered separately for customs purposes, shall 
be treated as a separate foreign country. 
(3) The term "GATT" means the General Agreement on 
Tariffs and Trade. 
(4) The term "implementing bill" has the meaning given such 
term in section 151(bXl) of the Trade Act of 1974 (19 U.S.C. 
2191(bXl)). 
(5) The term "international trade" includes, but is not limited 
to— 
(A) trade in both goods and services, and 
"^nMm^ 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1135 
(B) foreign direct investment by United States persons, 
especiedly if such investment has implications for trade in 
goods and services. 
(6) The term "state trading enterprise" means— 
(A) any agency, instrumentality, or administrative unit of 
a foreign country which— 
(i) purchases goods or services in international trade 
for any purpose other than the use of such goods or 
services by such agency, instrumentality, administra-
tive unit, or foreign country, or 
(ii) sells goods or services in international trade; or 
(B) any business firm which— 
(i) is substantially owned or controlled by a foreign 
country or any agency, instrumentality, or administra-
tive unit thereof, 
(ii) is granted (formally or informally) any special or 
exclusive privilege by such foreign country, agency, 
instrumentality, or administrative unit, and 
(iii) purchases goods or services in international 
trade for any purpose other than the use of such goods 
or services by such foreign country, agency, instrumen-
tality, or administrative unit, or which sells goods or 
services in international trade, 
(b) CONFORMING AMENDMENTS.— 
(1) Section 151(bKl) of the- Trade Act of 1974 (19 U.S.C. 
2191(bXl)) is amended by striking out "section 102" and insert-
ing "section 102 of this Act or section 1103(aXl) of the Omnibus 
Trade and Competitiveness Act of 1988". 
(2) Section 121 of the Trade Act of 1974 (19 U.S.C. 2131) is 
amended by striking out subsections (a), (b), and (c). 
PART 2—HEARINGS AND ADVICE CONCERNING 
NEGOTIATIONS 
SEC. 1111. HEARINGS AND ADVICE. 
(a) ADVICE FROM ITC AND OTHER FEDERAL AGENCIES CONCERNING 
TRADE POUCY AND NEGOTIATIONS.—Sections 131 through 134, inclu-
sive, of the Trade Act of 1974 (19 U.S.C. 2151-2154) are amended to 
read as follows: 
"SEC. 131. ADVICE FROM INTERNATIONAL TRADE COMMISSION. 
19 USC 2151. 
"(a) LISTS OF ARTICLES WHICH MAY BE CONSIDERED FOR ACTION.— 
"(1) In connection with any proposed trade agreement under President of U.S. 
section 123 of this Act or section 1102 (a) or (c) of the Omnibus 
Trade and Competitiveness Act of 1988, the President shall 
from time to time publish and furnish the International Trade 
Commission (hereafter in this section referred to as the 
'Commission') with lists of articles which may be considered for 
modification or continuance of United States duties, continu-
ance of United States duty-free or excise treatment, or addi-
tional duties. In the case of any article with respect to which 
consideration may be given to reducing or increasing the rate of 
duty, the list shall specify the provision of this subchapter 
under which such consideration may be given. 
"(2) In connection with any proposed trade agreement under 
section 1102 (b) or (c) of the Omnibus Trade and Competitive-
102 STAT. 1136 
PUBLIC LAW 100-418—AUG. 23, 1988 
Copyrights. 
Patents and 
trademarks. 
Securities. 
Consumer 
protection. 
Employment 
and 
unemployment. 
Employment 
and 
unemplojrment. 
Wages. 
Consumer 
protection. 
Copyrights. 
Patents and 
trademarks. 
Securities. 
ness Act of 1988, the President may from time to time publish 
and furnish the Commission with lists of nontariff matters 
which may be considered for modification. 
"(b) ADVICE TO PRESIDENT BY COMMISSION.—Within 6 months after 
receipt of a list under subsection (a) or, in the case of a list submitted 
in connection with a trade agreement, within 90 days after receipt of 
such list, the Commission shall advise the President, with respect to 
each article or nontariff matter, of its judgment as to the probable 
economic effect of modification of the tariff or nontariff measure on 
industries producing like or directly competitive articles and on 
consumers, so as to assist the President in making an informed 
judgment as to the impact which might be caused by such modi-
fications on United States interests, such as sectors involved in 
manufacturing, agriculture, mining, fishing, services, intellectual 
property, investment, labor, and consumers. Such advice may in-
clude in the case of any article the advice of the Commission as to 
whether any reduction in the rate of duty should take place over a 
longer period of time than the minimum period provided for in 
section 1102(a)(3XA). 
"(c) ADDITIONAL INVESTIGATIONS AND REPORTS REQUESTED BY THE 
PRESIDENT OR THE TRADE REPRESENTATIVE.—In addition, in order to 
assist the President in his determination whether to enter into any 
agreement under section 123 of this Act or section 1102 of the 
Omnibus Trade and Competitiveness Act of 1988, or how to develop 
trade policy, priorities or other matters (such as priorities for ac-
tions to improve opportunities in foreign markets), the Commission 
shall make such investigations and reports as may be requested by 
the President or the United States Trade Representative on matters 
such as effects of modification of any barrier to (or other distortion 
of) international trade on domestic workers, industries or sectors, 
purchasers, prices and quantities of articles in the United States. 
"(d) COMMISSION STEPS IN PREPARING ITS ADVICE TO THE PRESI-
DENT.—In preparing its advice to the President under this section, 
the Commission shall to the extent practicable— 
"(1) investigate conditions, causes, and effects relating to 
competition between the foreign industries producing the arti-
cles or services in question and the domestic industries produc-
ing the like or directly competitive articles or services; 
(2) analyze the production, trade, and consumption of each 
like or directly competitive article or service, taking into consid-
eration employment, profit levels, and use of productive facili-
ties with respect to the domestic industries concerned, and such 
other economic factors in such industries as it considers rel-
evant, including prices, wages, sales, inventories, patterns of 
demand, capital investment, obsolescence of equipment, and 
diversification of production; 
"(3) describe the probable nature and extent of any significant 
change in emplo5mient, profit levels, and use of productive 
facilities; the overall impact of such or other possible changes on 
the competitiveness of relevant domestic industries or sectors; 
and such other conditions as it deems relevant in the domestic 
industries or sectors concerned which it believes such modifica-
tions would cause; and 
"(4) make special studies (including studies of real wages paid 
in foreign supplying countries), whenever deemed to be >yar-
ranted, of particular proposed modifications affecting United 
States manufacturing, agriculture, mining, fishing, labor. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1137 
consumers, services, intellectual property and investment, using 
to the fullest extent practicable United States Government 
facilities abroad and appropriate personnel of the United States. 
"(e) PuBuc HEARING.—^In preparing its advice to the President 
under this section, the Commission shall, after reasonable notice, 
hold public hearings. 
"SEC. 132. ADVICE FROM EXECUTIVE DEPARTMENTS AND OTHER President of U.S. 
SOURCES. 
19 use 2152. 
"Before any trade agreement is entered into under section 123 of 
this Act or section 1102 of the Omnibus Trade and Competitiveness 
Act of 1988, the President shall seek information and advice with 
respect to such agreement from the Departments of Agriculture, 
Commerce, Defense, Interior, Labor, State and the Treasury, from 
the United States Trade Representative, and from such other 
sources as he may deem appropriate. Such advice shall be prepared 
and presented consistent with the provisions of Reorganization Plan 
Number 3 of 1979, Executive Order Number 12188 and section 
141(c). 
•SEC. 133. PUBLIC HEARINGS. 
19 u s e 2153. 
"(a) OPPORTUNITY FOR PRESENTATION OF VIEWS.—In connection President of u.s. 
with any proposed trade agreement under section 123 of this Act or 
section 1102 of the Omnibus Trade and Competitiveness Act of 1988, 
the President shall afford an opportunity for any interested person 
to present his views concerning any article on a list published under 
section 131, any matter or article which should be so listed, any 
concession which should be sought by the United States, or any 
other matter relevsmt to such proposed trade agreement. For this Regulations, 
purpose, the President shall designate an agency or an interagency 
committee which shall, after reasonable notice, hold public hearings 
and prescribe regulations governing the conduct of such hearings. 
When appropriate, such procedures shall apply to the development 
of trade policy and priorities. 
"(b) SUMMARY OF HEARINGS.—The organization holding such hear-
ing shall furnish the President with a summary thereof. 
"SEC. 134. PREREQUISITES FOR OFFERS. 
"(a) In any negotiation seeking an agreement under section 123 of 
this Act or section 1102 of the Omnibus Trade and Competitiveness 
Act of 1988, the President may make a formal offer for the modifica-
tion or continuance of any United States duty, import restrictions, 
or barriers to (or other distortions of) international trade, the 
continuance of United States duty-free or excise treatment, or the 
imposition of additional duties, import restrictions, or other barrier 
to (or other distortion of) international trade including trade in 
services, foreign direct investment and intellectual property as cov-
ered by this title, with respect to any article or matter only after he 
has received a summary of the hearings at which an opportunity to 
be heard with respect to such article has been afforded under section 
133. In addition, the President may make an offer for the modifica-
tion or continuance of any United States duty, the continuance of 
United States duty-free or excise treatment, or the imposition of 
additional duties, with respect to any article included in a list 
published and furnished under section 131(a), only after he has 
received advice concerning such article from the Commission under 
section 131(b), or after the expiration of the 6-month or 90-day 
19 use 2154. 
Copyrights. 
Patents and 
trademarks. 
102 STAT. 1138 
PUBLIC LAW 100-418—AUG. 23, 1988 
period provided for in that section, as appropriate, whichever first 
occurs. 
President of U.S. 
"(b) In determining whether to make offers described in subsec-
tion (a) in the course of negotiating any trade agreement under 
section 1102 of the Omnibus Trade and Competitiveness Act of 1988, 
and in determining the nature and scope of such offers, the Presi-
dent shall take into account any advice or information provided, or 
reports submitted, by— 
"(1) the Commission; 
"(2) any advisory committee established under section 135; or 
"(3) any organization that holds public hearings under section 
133; 
with respect to any article, or domestic industry, that is sensitive, or 
potentially sensitive, to imports.". 
PART 
3—OTHER 
TRADE 
AGREEMENT 
AND 
NEGOTIATION 
PROVISIONS 
SEC. 1121. IMPLEMENTATION OF NAIROBI PROTOCOL. 
(a) PURPOSE AND REFERENCE.— 
(1) The purpose of this section is— 
(A) to provide for the implementation by the United 
States of the Protocol (S. Treaty Doc. 97-2, 9; hereafter 
referred to in this section as the "Nairobi Protocol") to the 
Agreement on the Importation of Educational, Scientific, 
and Cultural Materials (17 UST (pt. 2) 1835; commonly 
known as the "Florence Agreement"); 
(B) to clarify or modify the duty-free treatment accorded 
under the Educational, Scientific, and Cultural Materials 
Importation Act of 1982 (Public Law 97-446, 96 Stat. 2346-
2349), the Educational, Scientific, and Cultural Materials 
Importation Act of 1966 (Public Law 89-65, 80 Stat. 897 et 
seq.), and Public Law 89-634 (80 Stat. 879); and 
(C) to continue the safeguard provisions concerning cer-
tain imported articles provided for in the Educational, Sci-
entific, and Cultural Materials Importation Act of 1982. 
(2) Whenever an amendment or repeal in this section is 
expressed in terms of an amendment to, or repeal of, an item, 
headnote. Appendix, or other provision, the reference shall be 
considered to be made to an item, headnote. Appendix, or other 
provision of the Tariff Schedules of the United States. 
(b) REPEAL OF THE EDUCATIONAL, SCIENTIFIC, AND CULTURAL MATE-
RIALS IMPORTATION ACT OF 1982.—The Educational, Scientific, and 
Cultural Materials Importation Act of 1982 is hereby repealed. 
(c) TREATMENT OF PRINTED MATTER AND CERTAIN OTHER ARTI-
CLES.— 
(1) Items 270.45 and 270.50 are redesignated as items 270.46 
and 270.48, respectively. 
(2) Part 5 of schedule 2 is amended— 
(A) by inserting in numerical sequence the following new 
item: 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1139 
270.90 
Catalogs of films, record-
ings, or other visual and 
auditory material of an 
educational, scientific, or 
cultural character 
Free 
Free 
and 
(B) by striking out items 273.45, 273.50, and 273.55 and 
the superior heading thereto and inserting in lieu thereof 
the following new item having the same degree of indenta-
tion as item 273.35: 
273.52 
Architectural, engineering, 
industrial, or commercial 
drawings 
and 
plans, 
whether originals or re-
productions 
Free 
Free 
(3XA) The superior heading to items 274.50, 274.60, 274.65, 
and 274.70 is amended by inserting "(including developed photo-
graphic film; photf^aphic slides; transparencies; holograms for 
laser projection; and microfilm, microfiches and similar articles 
except those provided for in item 737.52)" after "Photographs". 
(B) Part 5 of schedule 2 is amended by inserting in numerical 
sequence the following new items under the superior heading 
"Rinted not over 20 years at time of importation:", and before, 
and with the same d^ree of indentation as, "Lithographs on 
paper": 
274.55 
274.56 
Loose illustrations, repro-
duction proofe or repro-
duction films used for the 
production of books 
Articles 
provided 
for 
in 
items 
270.05, 
270.10, 
270.25, 
270.55, 
270.63, 
270.70, and 273.60 in the 
form of microfilm, micro-
fiches, and similar film 
media 
Free 
Free 
Free 
Free 
(O Subpart D of part 5 of schedule 7 is amended by striking 
out item 735.20 and inserting in lieu thereof the following new 
items with a superior heading having the same d^ree of 
indentation as item 735.18: 
735.21 
735.24 
Puzzles; game, sport, gym-
nastic, athletic, or play-
ground equipment; all the 
forgoing, 
and 
parts 
thereof, not specially pro-
vided for 
Crossword puzzle books, 
whether or not in the 
form of microfilm, mi-
crofiches, 
or 
similar 
film media 
Other 
Free 
5.52% ad vaL 
Free 
40%adval. 
102 STAT. 1140 
PUBLIC LAW 100-418—AUG. 23, 1988 
(D) Item 737.52 is amended by inserting "(whether or not in 
the form of microfilm, microfiches, or similar film media)" after 
"Toy books". 
(E) Item 830.00 is amended by inserting "; official government 
publications in the form of microfilm, microfiches, or similar 
film media" after "not developed". 
(F) Item 840.00 is amended by inserting ", whether or not in 
the form of microfilm, microfiches, or similar film media" after 
"documents". 
(d) VISUAL AND AUDITORY MATERIAL.— 
(1) Headnote 1 to part 7 of schedule 8 is amended to read as 
follows: 
"1. (a) No article shall be exempted from duty under item 870,30 
unless either— 
"(i) a Federal agency (or agencies) designated by the President 
determines that such article is visual or auditory material of an 
educational, scientific, or cultural character within the meaning 
of the Agreement for Facilitating the International Circulation 
of Visual and Auditory Material of an Educational, Scientific, 
or Cultural Character (17 UST (pt. 2) 1578; Beirut Agreement), 
or 
"(ii) such article— 
"(A) is imported by, or certified by the importer to be for 
the use of, any public or private institution or association 
approved as educational, scientific, or cultural by a Federal 
agency or agencies designated by the President for the 
purpose of duty-free admission pursuant to the Nairobi 
Protocol to the Florence Agreement, and 
"(B) is certified by the importer to be visual or auditory 
material of an educational, scientific, or cultural character 
or to have been produced by the United Nations or any of 
its specialized agencies. 
For purposes of subparagraph (i), whenever the President deter-
mines that there is, or may be, profitmaking exhibition or use of 
articles described in item 870.30 which interferes significantly (or 
threatens to interfere significantly) with domestic production of 
similar articles, he may prescribe r^ulations imposing restrictions 
on the entry under that item of such foreign articles to insure that 
they will be exhibited or used only for nonprofitmaking purposes. 
"0)) For purposes of items 870.32 through 870.35, inclusive, no 
article shall be exempted from duty unless it meets the criteria set 
forth in subparagraphs (aXii) (A) and (B) of this headnote.". 
(2) Item 870.30 is amended— 
(A) by inserting "(except toy models)" after "models", and 
(B) by striking out "headnote 1" and inserting in lieu 
thereof "headnote 1(a)". 
(3) Part 7 of schedule 8 is amended by inserting in numerical 
sequence the following new items with a superior heading at the 
same degree of indentation as item 870.30: 
Articles determined to be 
visual or auditory materi-
als in accordance with 
headnote 1 of this part: 
IMSiS*.-' 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1141 
870.32 
870.33 
870.34 
870.35 
Holograms for laser pro-
jection; micronim, mi-
crofiches, and similar 
articles 
Motion-picture films in 
any form on which pic-
tures, or sound and pic-
tures, have been re-
corded, whether or not 
developed 
Sound recordings, combi-
nation 
sound 
and 
visual recordings, and 
magnetic 
recordings; 
video discs, video tapes, 
and similar articles 
Patterns and wall charts; 
globes; mock-ups or vis-
ualizations of abstract 
concepts such as molec-
ular 
structures 
or 
mathematical 
formu-
lae; materials for pro-
grammed 
instruction; 
and 
kits 
containing 
printed materials and 
audio materials and 
visual materials or any 
combination of two or 
more of the foregoing 
Free 
Free 
Free 
Free 
Free 
Free 
Free 
Free 
(e) TOOLS FOR SCIENTIFIC INSTRUMENTS OR APPARATUS.—Part 4 of 
schedule 8 is amended by inserting in numerical sequence the 
following new item having the same degree of indentation as item 
852.20: 
851.67 
Tools specially designed to 
be used for the mainte-
nance, checking, gauging 
or repair of scientiHc in-
struments or apparatus 
admitted 
under 
item 
851.60 
Free 
Free 
(f) ARTICLES FOR THE BUND AND FOR OTHER HANDICAPPED PER-
SONS.— 
(1) Subpart D of part 2 of schedule 8 is amended by striking 
out items 825.00, 826.10, and 826.20. 
(2) The headnotes to part 7 of schedule 8 are amended— 
(A) by adding at the end thereof the following new head-
note: 
"4. (a) For purposes of items 870.65, 870.66, and 870.67, the term 
'blind or other physically or mentally handicapped persons' includes 
any person suffering from a permanent or chronic physical or 
mental impairment which substantially limits one or more major 
life activities, such as caring for one's self, performing manual 
tasks, walking, seeing, hearing, speaking, breathing, learning, and 
working. 
"(b) Items 870.65, 870.66, and 870.67 do not cover— 
"(i) articles for acute or transient disability; 
102 STAT. 1142 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(ii) spectacles, dentures, and cosmetic articles for individuals 
not substantially disabled; 
"(iii) therapeutic and diagnostic articles; or 
"(iv) medicine or drugs.". 
(3) Part 7 of schedule 8 is amended by inserting in numerical 
sequence the following new items with a superior heading 
having the same degree of indentation as item 870.45: 
870.65 
870.66 
870.67 
Articles specially designed 
or adapted for the use or 
benefit of the blind or 
other physically or men-
tally 
handicapped 
per-
sons: 
Articles for the blind: 
Books, music, and pam-
phlets, 
in 
raised 
print, used exclusive-
ly by or for them 
Braille tablets, cubar-
ithms, and special ap-
paratus, 
machines, 
presses, and types for 
their use or benefit 
exclusively 
Other 
Free 
Free 
Free 
Free 
Free 
Free 
(g) AUTHORITY TO LIMIT CERTAIN DUTY-FREE TREATMENT.— 
(1)(A) The President may proclaim changes in the Tariff 
Schedules of the United States to narrow the scope of, place 
conditions upon, or otherwise eliminate the duty-free treatment 
accorded by reason of the amendments made by subsection (e) or 
(f) with respect to any type of article the duty-free treatment of 
which has significant adverse impact on a domestic industry (or 
portion thereof) manufacturing or producing a like or directly 
competitive article, if the effect of such change is consistent 
with the provisions of the relevant annexes of the Florence 
Agreement or the Nairobi Protocol. 
(B) If the President proclaims changes to the Tariff Schedules 
of the United States under subparagraph (A), the rate of duty 
thereafter applicable to any article which is— 
(i) affected by such action, and 
(ii) imported from any source, 
shall be the rate determined and proclaimed by the President as 
the rate which would then be applicable to such article from 
such source if this section had not been enacted. 
(2) If the President determines that any duty-free treatment 
which is no longer in effect because of action taken under 
paragraph (1) could be restored, in whole or in part, without a 
resumption of significant adverse impact on a domestic industry 
or portion thereof, the President may proclaim changes to the 
Tariff Schedules of the United States to resume such duty-free 
treatment. 
(3) Before taking any action under paragraph (1) or (2), the 
President shall afford an opportunity for interested Govern-
ment agencies and private persons to present their views 
concerning the proposed action. 
ar-^^'-mim'^'-'"-''^' 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1143 
(4) Any action in effect or any proceeding in progress under 
section 166 of the Educational, Scientific, and Cultural Mate-
rials Importation Act of 1982 on the day that Act is repealed 
shall be considered as an action or proceeding under this section 
and shall be continued or resumed under this section, 
(h) AUTHORITY TO EXPAND CERTAIN DUTY-FREE TREATMENT AC-
CORDED B
Y REASON OF SUBSECTION (d).— 
(1) If the President determines such action to be in the 
interest of the United States, the President may proclaim 
changes to the Tariff Schedules of the United States in order to 
remove or modify any condition or restriction imposed under 
headnote 1 to part 7 of schedule 8 (as amended by subsection (d) 
of this section) of such Schedules, on the importation of articles 
provided for in items 870.30 through 870.35, inclusive (except as 
to articles entered under the terms of headnote l(aXi) to part 7 
of schedule 8) of such Schedules, in order to implement the 
provisions of annex O l of the Nairobi Protocol. 
(2) Any change to the Tariff Schedules of the United States Effective date. 
proclaimed under paragraph (1) shall be effective with respect 
to articles entered, or withdrawn from warehouse, for consump-
tion on or after the date that is 15 days after the date on which 
the President proclaims such change, 
(i) STATISTICAL INFORMATION.—In order to implement effectively 
the provisions of subsection (g), the Secretary of the Treasury, in 
conjunction with the Secretary of (Commerce, shall take such actions 
as are necessary to obtain adequate statistical information with 
respect to articles to which amendments made by subsection (c) 
apply, in such detail and for such period as the Secretaries consider 
necessary, 
(j) EFFECTIVE DATE.— 
(1) The provisions of this section, and the repeal and amend-
ments made by this section, shall apply with respect to articles 
entered, or withdrawn from warehouse, for consumption on or 
after the later of— 
(A) October 1,1988, or 
(B) the date that is 15 days after the deposit of the United 
States ratification of the Nairobi Protocol. 
(2) Notwithstanding section 514 of the Tariff Act of 1930 or 
any other provision of law, upon request filed with the appro-
priate customs officer on or before the date that is 180 days 
after the later of the dates described in subparagraphs (A) and 
(B) of paragraph (1), any entry, or withdrawal from warehouse, 
of any article— 
(A) which was made on or after August 12, 1985, and 
before such later date, and 
(B) with respect to which there would have been no duty 
if the provisions of this section, or any amendments made 
by this section, applied to such entry or withdrawal, 
shall be liquidated or reliquidated as though such entry or 
withdrawal had been made on or after such later date. 
SEC. 1122. IMPLEMENTATION OF UNITED STATES-EC AGREEMENT ON 
CITRUS AND PASTA. 
(a) PURPOSE.—The purpose of this section is to provide for the 
implementation of tariff reductions agreed to by the United States 
in the Agreement between the European (Dommunities and the 
102 STAT. 1144 
PUBLIC LAW 100-418—AUG. 23, 1988 
United States, concluded February 24, 1987, with respect to citrus 
and pasta. 
(b) PROCLAMATION AUTHORITY.— 
(1) The amendments made by subsection (c) shall apply with 
respect to articles entered, or withdrawn from warehouse for 
consumption, on or after a date occurring after September 30, 
1988, that is proclaimed by the President as being appropriate 
to carry out the Agreement referred to in subsection (a). 
President of U.S. 
(2) The President is authorized at any time to modify or 
terminate by proclamation any provision of law enacted by the 
amendments made by subsection (c). 
(3) The rates of duty in column numbered 1 of the Tariff 
Schedules of the United States that are enacted by the amend-
ments made by subsection (c) shall be treated— 
(A) as not having the status of statutory provisions en-
acted by the Congress; but 
(B) as having been proclaimed by the President as being 
required to carry out a foreign trade agreement to which 
the United States is a party. 
(c) AMENDMENTS TO TARIFF SCHEDULES.— 
(1) Whenever in this subsection an amendment is expressed in 
terms of an amendment to a schedule, headnote, item, the 
Appendix, or other provision, the reference shall be considered 
to be made to a schedule, headnote, item, the Appendix, or other 
provision of the Tariff Schedules of the United States. 
(2) Subpart C of part 3 of schedule 1 is amended by striking 
out item 112.40 and inserting in lieu thereof the following items 
with a superior heading having the same degree of indentation 
as the article description in item 112.42: 
112.40 
112.41 
Anchovies: 
If entered in any calen-
dar year before 3,000 
metric tons of ancho-
vies have been en-
tered under this item 
in such calendar year.. 
Other 
3% ad val. 
6% ad val. 
Free (A.E.I) 
Free (A,E,I) 
30% ad val 
30% ad val 
(3XA) Item 117.65 is amended bv striking out "9% ad val." 
and inserting in lieu thereof "Free'. 
(B) Item 117.67 is amended by striking out "12% ad val." and 
inserting in lieu thereof "Free". 
(4) Subpart B of part 9 of Schedule 1 is amended by striking 
out item 147.29 and inserting in lieu thereof the following items 
with a superior heading having the same degree of indentation 
as the article description in item 147.30: 
147.28 
147.29 
Mandarin, packed in air-
tight containers: 
Satsuma, if entered in 
any 
calendar 
year 
before 40,000 metric 
tons of Satsuma or-
anges have been en-
tered under this item 
in such calendar year.. 
Other 
Free 
0.2$ per lb. 
Free (A,E,I) 
Free (A,E,I) 
U per lb. 
U per lb. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1145 
(5) Subpart B of part 9 of Schedule 1 is amended— 
(A) by striking out item 148.44 and inserting in lieu 
thereof the following items with a superior heading having 
the same degree of indentation as the article description in 
item 148.42: 
148.43 
148.44 
148.45 
Other 
In 
containers 
each 
holding 
not 
more 
In 
containers 
each 
holding 
more 
than 
0.3 gallon: 
If entered in any cal-
endar year before 
4,400 metric tons of 
olives 
have 
been 
entered under this 
item in such calen-
Other 
20i per gal. 
lOi per gal. 
20t per gal. 
Free(E) 
Free(E) 
Free(E) 
20i per gal. 
20i per gal. 
20f per gal 
(B) by striking out item 148.48 and inserting in lieu 
thereof the following items with a superior heading having 
the same degree of indentation as the article description in 
item 148.46: 
148.47 
148.48 
Other: 
If entered in any calen-
dar year before 730 
metric tons of olives 
have 
been 
entered 
under this item in 
Other 
15c per gal. 
30c per gal. 
Free(E) 
Free (E) 
30c per gal 
30c per gal 
(C) by striking out "or stuffed" in item 148.50; 
(D) by redesignating items 148.52, 148.54, and 148.56 as 
items 148.55,148.56, and 148.57, respectively; 
(E) by inserting after item 148.50 the following new items 
with a superior heading having the same degree of indenta-
tion as the article description in item 148.50: 
148.51 
148.52 
148.53 
Stuffed: 
In 
containers 
each 
holding 
not 
more 
than 0.3 gallon: 
Place Packed: 
If entered in any 
calendar 
year 
before 
2,700 
metric 
tons 
of 
olives have been 
entered 
under 
this item in such 
calendar year 
Other 
Other 
15c per gal. 
30C per gal. 
30c per gal. 
Free (E) 
Free(E) 
Free (E) 
30c per gal 
30c per gal 
30C per gal 
102 STAT. 1146 
PUBLIC LAW 100-418—AUG. 23, 1988 
148.54 
In 
containers 
each 
holding more than 
0.3 gallon 
30^ per gal. 
Free (E) 
30^ per gal. 
(F) by striking out "5<t per lb." in item 148.55, as redesig-
nated by paragraph (4), and inserting in lieu thereof "2.5<t 
per lb."; and 
(G) by striking out item 148.57, as redesignated by para-
graph (4), and inserting in lieu thereof the following new 
items with the superior heading having the same degree of 
indentation as the article description in item 148.40: 
148.57 
148.58 
Otherwise preftared or 
preserved: 
If entered in any calen-
dar year before 550 
metric tons of olives 
have been entered 
under this item in 
such calendar year 
Other 
2M per lb. 
5i per lb. 
Free(E) 
Free(E) 
5^ per lb. 
5t per lb. 
19 u s e 1356k 
note. 
22 u s e 5304 
note. 
(6) Items 161.06 and 161.08 are each amended by striking out 
"16% ad val." and inserting in lieu thereof "8% ad val.". 
(7) Item 161.71 is amended by striking out "2$ per lb." and 
inserting in lieu thereof "1.35<|; per lb.". 
(8) Item 167.15 is amended by striking out "3<^ per gal." and 
inserting in Ueu thereof "1.5<|; per gal.". 
(9XA) Item 176.29 is amended by striking out "3.8$ per lb. on 
contents and container" and inserting in lieu thereof "2.28$ per 
lb. on contents and container.". 
(B) Item 176.30 is amended by striking out "2.6<}; per lb." and 
inserting in lieu thereof "1.56<|; per lb.", 
(d) REPORT.—The Trade Representative shall include in the semi-
annual report submitted imder section 309(3) of the Trade Act of 
1974 an assessment of whether the European Communities are in 
compliance with the agreement referred to in subsection (a). 
SEC. 1123. EXTENSION OF INTERNATIONAL COFFEE AGREEMENT ACT OF 
1980. 
(a) EXTENSION.—Section 2 of the International Coffee Agreement 
Act of 1980 (19 U.S.C. 1356k) is amended by striking out "October 1, 
1986" and inserting "October 1,1989". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall take effect January 1,1987. 
SEC. 1124. NEGOTIATIONS ON CURRENCY EXCHANGE RATES. 
(a) FINDINGS.—The Congress finds that— 
(1) the benefit of trade concessions can be adversely affected 
by misalignments in currency, and 
(2) misalignments in currency caused by government policies 
intended to maintain an unfair trade advantage tend to nullify 
and impair trade concessions. 
(b) NEGOTIATIONS.—Whenever, in the course of negotiating a trade 
agreement under this subtitle, the President is advised by the 
Secretary of the Treasury that a foreign country that is a party to 
the negotiations satisfies the criteria for initiating bilateral cur-
rency n^otiations listed in section 3004(b) of this Act, the Secretary 
.'**a« 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1147 
of the Treasury shall take action to initiate bilateral currency 
negotiations on an expedited basis with such foreign country. 
SEC. 1125. REPORTS ON NEGOTIATIONS TO ELIMINATE WINE TRADE President of U.S. 
BARRIERS. 
19 USC 2804 
Before the close of the 13-month period beginning on the date of '^^^^ 
the enactment of this Act, the President shall update each report 
that the President submitted to the Committee on Ways and Means 
and the Committee on Finance under section 905(b) of the Wine 
Equity and Export Expansion Act of 1984 (19 U.S.C. 2804) and 
submit the updated report to both of such committees. Each updated 
report shall contain, with respect to the major wine trading country 
Concerned— 
(1) a description of each tariff or nontariff barrier to (or other 
distortion of) trade in United States wine of that country with 
respect to which the United States Trade Representative has 
carried out consultations since the report required under such 
section 905(b) was submitted; 
(2) the status of the consultations described under paragraph 
(l);and 
(3) information, explanations, and recommendations of the 
kind referred to in paragraph (1) (C), (D), and (E) of such section 
9050b) that are based on developments (including the taking of 
relevant actions, if any, of a kind not contemplated at the time 
of the enactment of such 1984 Act) since the submission of the 
report required under such se'ction. 
Subtitle B—Implementation of the 
Harmonized Tariff Schedule 
. 
SEC. 1201. PURPOSES. 
19 USC 3001. 
The purposes of this subtitle are— 
(1) to approve the International Convention on the Har-
monized Commodity Description and Coding System; 
(2) to implement in United States law the nomenclature 
established internationally by the Convention; and 
(3) to provide that the Convention shall be treated as a trade 
agreement obligation of the United States. 
SEC. 1202. DEFINITIONS. 
19 USC 3002. 
As used in this subtitle: 
(1) The term "Commission" means the United States Inter-
national Trade Commission. 
(2) The term "Convention" means the International Conven-
tion on the Harmonized Commodity Description and Coding 
System, done at Brussels on June 14, 1983, and the Protocol 
thereto, done at Brussels on June 24, 1986, submitted to the 
Congress on June 15,1987. 
(3) The term "entered" means entered, or withdrawn from 
warehouse for consumption, in the customs territory of the 
United States. 
(4) The term "Federal agency" means any establishment in 
the executive branch of the United States Government. 
102 STAT. 1148 
PUBLIC LAW 100-418—AUG. 23, 1988 
(5) The term "old Schedules" means title I of the Tariff Act of 
1930 (19 U.S.C. 1202) as in effect on the day before the effective 
date of the amendment to such title under section 1204(a). 
(6) The term "technical rectifications" means rectifications of 
an editorial character or minor technical or clerical changes 
which do not affect the substance or meaning of the text, such 
as— 
(A) errors in spelling, numbering, or punctuation; 
(B) errors in indentation; 
(C) errors (including inadvertent omissions) in cross-
references to headings or subheadings or notes; and 
(D) other clerical or typographical errors. 
19 use 3003. 
SEC. 1203. CONGRESSIONAL APPROVAL OF UNITED STATES ACCESSION 
TO THE CONVENTION. 
(a) CONGRESSIONAL APPROVAL.—The Congress approves the acces-
sion by the United States of America to the ClJonvention. 
(b) ACCEPTANCE OP THE FINAL LEGAL TEXT OF THE (IJONVENTION BY 
THE PRESIDENT.—The President may accept for the United States 
the final legal instruments embodying the (IJonvention. The Presi-
dent shall submit a copy of each final instrument to the Congress on 
the date it becomes available. 
(c) UNSPECIFIED PRIVATE REMEDIES NOT CREATED.—Neither the 
entry into force with respect to the United States of the (Convention 
nor the enactment of this subtitle may be construed as creating any 
private right of action or remedy for which provision is not explic-
itly made under this subtitle or under other laws of the United 
States. 
(d) TERMINATION.—The provisions of section 125(a) of the Trade 
Act of 1974 (19 U.S.C. 2135(a)) do not apply to the Convention. 
19 use 3004. 
SEC. 1204. ENACTMENT OF THE HARMONIZED TARIFF SCHEDULE. 
19 use prec. 
(a) IN GENERAL.—The Tariff Act of 1930 is amended by striking 
1202 note. 
out title I and inserting a new title I entitled "Title I—Harmonized 
Tariff Schedule of the United States" (hereinafter in this subtitle 
referred to as the "Harmonized Tariff Schedule") which— 
(1) consists of— 
(A) the (jeneral Notes; 
(B) the (jeneral Rules of Interpretation; 
(C) the Additional U.S. Rules of Interpretation; 
(D) sections I to XXII, inclusive (encompassing chapters 1 
to 99, and including all section and chapter notes, article 
provisions, and tariff and other treatment accorded there-
to); and 
OE) the Chemical Appendix to the Harmonized Tariff 
Schedule; 
all conforming to the nomenclature of the C!onvention and as set 
forth in Publication No. 2030 of the CJommission entitled "Har-
monized Tariff Schedule of the United States Annotated for 
Statistical Reporting Purposes" and Supplement No. 1 thereto; 
but 
(2) does not include the statistical annotations, notes, an-
nexes, suffixes, check digits, units of quantity, and other mat-
ters formulated under section 484(e) of the TariJEf Act of 1930 (19 
U.S.C. 1484(e)), nor the table of contents, footnotes, index, and 
other matters inserted for ease of reference, that are included in 
such Publication No. 2030 or Supplement No. 1. thereto. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1149 
(b) MODIFICATIONS TO THE HARMONIZED TARIFF SCHEDULE.—At the 
President of U.S. 
earliest practicable date after the date of the enactment of the 
Onmibus Trade and Competitiveness Act of 1988, the President 
shall— 
(1) proclaim such modifications to the Harmonized Tariff 
Schedule as are consistent with the standards applied in 
converting the old Schedules into the format of the Convention, 
as reflected in such Publication No. 2030 and Supplement No. 1. 
thereto, and as are necessary or appropriate to implement— 
(A) the future 
outstanding staged rate 
reductions 
authorized by the Congress in— 
(i) the Trade Act of 1974 (19 U.S.C. 2101 et seq.) and 
the Trade Agreements Act of 1979 (19 U.S.C. 2501 et 
seq.) to reflect the tariff reductions that resulted from 
the Tokyo Round of multilateral trade negotiations, 
and 
(ii) the United States-Israel Free Trade Area Im-
plementation Act of 1985 (19 U.S.C. 1202 note) to reflect 
the tariff reduction resulting from the United States-
Israel Free Trade Area Agreement, 
(B) the applicable provisions of— 
(i) statutes enacted, 
(ii) executive actions taken, and 
(iii) final judicial decisions rendered, 
after January 1, 1988, and before the effective date of the 
Harmonized Tariff Schedule, and 
(C) such technical rectifications as the President consid-
ers necessary; and 
(2) take such action as the President considers necessary to 
bring trade agreements to which the United States is a party 
into conformity with the Harmonized Tariff Schedule. 
(c) STATUS OF THE HARMONIZED TARIFF SCHEDULE.— 
(1) The following shall be considered to be statutory provisions 
of law for all purposes: 
(A) The provisions of the Harmonized Tariff Schedule as 
enacted by this subtitle. 
(B) Each statutory amendment to the Harmonized Tariff 
Schedule. 
(C) Each modification or change made to the Harmonized 
Tariff Schedule by the President under authority of law 
(including section 604 of the Trade Act of 1974). 
(2) Neither the enactment of this subtitle nor the subsequent 
enactment of any amendment to the Harmonized Tariff Sched-
ule, unless such subsequent enactment otherwise provides, may 
be construed as limiting the authority of the President— 
(A) to effect the import treatment necessary or appro-
priate to carry out, modify, withdraw, suspend, or termi-
nate, in whole or in part, trade agreements; or 
(B) to take such other actions through the modification, 
continuance, or imposition of any rate of duty or other 
import restriction as may be necessary or appropriate 
under the authority of the President. 
(3) If a rate of duty established in column 1 by the President 
by proclamation or Executive order is higher than the existing 
rate of duty in column 2, the President may by proclamation or 
Executive order increase such existing rate to the higher rate. 
102 STAT. 1150 
PUBLIC LAW 100-418—AUG. 23, 1988 
' 
' (4) If a rate of duty is suspended or terminated by the 
President by proclamation or Executive order and 
the 
' 
proclamation or Executive order does not specify the rate that is 
to apply in lieu of the suspended or terminated rate, the last 
^ 
rate of duty that applied prior to the suspended or terminated 
rate shall be the efffective rate of duty. 
(d) INTERIM INFORMATIONAL USE OF HARMONIZED TARIFF SCHEDULE 
CLASSIFICATIONS.—Each— 
(1) proclamation issued by the President; 
" 
(2) public notice issued by the Commission or other Federal 
agency; and 
(3) finding, determination, order, recommendation, or other 
decision made by the Commission or other Federal agency; 
during the period between the date of the enactment of the Omnibus 
Trade and Competitiveness Act of 1988 and the effective date of the 
Harmonized Tariff Schedule shall, if the proclamation, notice, or 
decision contains a reference to the tariff classification of any 
article, include, for informational purposes, a reference to the classi-
fication of that article under the Harmonized Tariff Schedule. 
19 use 3005. 
SEC. 1205. COMMISSION REVIEW OF, AND RECOMMENDATIONS REGARD-
ING, THE HARMONIZED TARIFF SCHEDULE. 
(a) IN GENERAL.—^The Commission shall keep the Harmonized 
Tariff Schedule under continuous review and periodically, at such 
time as amendments to the Convention are recommended by the 
Customs Cooperation Council for adoption, and as other cir-
cumstances warrant, shall recommend to the President such modi-
fications in the Harmonized Tariff Schedule as the Commission 
considers necessary or appropriate— 
(1) to conform the Harmonized Tariff Schedule with amend-
ments made to the Convention; 
(2) to promote the uniform application of the Convention and 
particularly the Annex thereto; 
(3) to ensure that the Harmonized Tariff Schedule is kept up-
to-date in light of changes in technol(%y or in patterns of 
international trade; 
(4) to alleviate unnecessary administrative burdens; and 
(5) to make technical rectifications. 
(b) AGENCY AND PUBLIC VIEWS REGARDING RECOMMENDATIONS.— 
In formulating recommendations under subsection (a), the Commis-
sion shall solicit, and give consideration to, the views of interested 
Federal agencies and the public. For purposes of obtaining public 
views, the Commission— 
(1) shall give notice of the proposed recommendations and 
afford reasonable opportunity for interested parties to present 
their views in writing; and 
(2) may provide for a public hearing. 
Reports. 
(c) SuBAOssiON OF RECOMMENDATIONS.—^The Commission shall 
submit recommendations under this section to the President in the 
form of a report that shall include a summary of the information on 
which the recommendations were based, together with a statement 
of the probable economic effect of each recommended change on any 
industry in the United States. The report also shall include a copy of 
all written views submitted by interested Federal agencies and a 
copy or summary, prepared by the Commission, of the views of all 
other interested parties. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1151 
(d) REQUIREMENTS REGARDING RECOMMENDATIONS.—The Commis-
sion may not recommend any modification to the Harmonized Tariff 
Schedule unless the modification meets the following requirements: 
(1) The modification must— 
(A) be consistent with the Convention or any amendment 
thereto recommended for adoption; 
(B) be consistent with sound nomenclature principles; and 
(C) ensure substantial rate neutrality. 
(2) Any change to a rate of duty must be consequent to, or 
necessitated by, nomenclature modifications that are rec-
ommended under this section. 
(3) The modification must not alter existing conditions of 
competition for the affected United States industry, labor, or 
trade. 
SEC. 1206. PRESIDENTIAL ACTION ON COMMISSION RECOMMENDATIONS. 19 USC 3006. 
(a) IN GENERAL.—The President may proclaim modifications, 
based on the recommendations by the Commission under section 
1205, to the Harmonized Tariff Schedule if the President determines 
that the modifications— 
(1) are in conformity with United States obligations under the 
Convention; and 
(2) do not run counter to the national economic interest of the 
United States. 
(h) LAY-OVF,R PERIOD.— 
(1) The President may proclaim a modification under subsec- President of U.S. 
tion (a) only after the expiration of the 60-day period beginning Reports. 
on the date on which the President submits a report to the 
Committee on Ways and Means of the House of Representatives 
and the Committee on Finance of the Senate that sets forth the 
proposed modification and the reasons therefor. 
(2) The 60-day period referred to in paragraph (1) shall be 
computed by excluding— 
(A) the days on which either House is not in session 
because of an adjournment of more than 3 days to a day 
certain or an adjournment of the Congress sine die; and 
(B) any Saturday and Sunday, not excluded under 
subparagraph (A), when either House is not in session. 
(c) EFFECTIVE DATE OF MODIFICATIONS.—Modifications proclaimed 
by the President under subsection (a) may not take effect before the 
15th day after the date on which the text of the proclamation is 
published in the Federal Register. 
SEC. 1207. PUBLICATION OF THE HARMONIZED TARIFF SCHEDULE. 
19 USC 3007. 
(a) IN GENERAL.—The Commission shall compile and publish, at 
appropriate intervals, and keep up to date the Harmonized Tariff 
Schedule and related information in the form of printed copy; and, 
if, in its judgment, such format would serve the public interest and 
convenience— 
(1) in the form of microfilm images; or 
(2) in the form of electroiiic media. 
(h) CONTENT.—Publications under subsection (a), in whatever 
format, shall contain— 
(1) the then current Harmonized Tariff Schedule; 
(2) statistical annotations and related statistical information 
formulated under section 484(e) of the Tariff Act of 1930 (19 
U.S.C. 1484(e)); and 
102 STAT. 1152 
PUBLIC LAW 100-418—AUG. 23, 1988 
(3) such other matters as the Commission considers to be 
necessary or appropriate to carry out the purposes enumerated 
in the Preamble to the Convention. 
Public 
SEC. 1208. IMPORT AND EXPORT STATISTICS. 
19^1JS^3008 
'^^ 
Secretary of Commerce shall compile, and make publicly 
available, the import and export trade statistics of the United 
States. Such statistics shall be conformed to the nomenclature of the 
Convention. 
19 u s e 3009. 
SEC. 1209. COORDINATION OF TRADE POLICY AND THE CONVENTION. 
The United States Trade Representative is responsible for co-
ordination of United States trade policy in relation to the Conven-
tion. Before formulating any United States position with respect to 
the Convention, including any proposed amendments thereto, the 
United States Trade Representative shall seek, and consider, 
information and advice from interested parties in the private sector 
(including a functional advisory committee) and from interested 
Federal agencies. 
19 u s e 3010. 
SEC. 1210. UNITED STATES PARTICIPATION ON THE CUSTOMS COOPERA-
TION COUNCIL REGARDING THE CONVENTION. 
(a) PRINCIPAL UNITED STATES AGENCIES.— 
(1) Subject to the policy direction of the Office of the United 
States Trade Representative under section 1209, the Depart-
ment of the Treasury, the Department of Commerce, and the 
Commission shall, with respect to the activities of the Customs 
Cooperation Council relating to the Convention— 
(A) be primarily responsible for formulating United 
States Government positions on technical and procedural 
issues; and 
(B) represent the United States Government. 
(2) The Department of Agriculture and other interested Fed-
eral agencies shall provide to the Department of the Treasury, 
the Department of Commerce, and the Commission technical 
advice and assistance relating to the functions referred to in 
paragraph (1). 
(b) DEVELOPMENT OF TECHNICAL PROPOSALS.— 
(1) In connection with responsibilities arising from the im-
plementation of the Convention and under section 484(e) of the 
* Tariff Act of 1930 (19 U.S.C. 1484(e)) regarding United States 
programs for the development of adequate and comparable 
statistical information on merchandise trade, the Secretary of 
the Treasury, the Secretary of Commerce, and the Commission 
shall prepare technical proposals that are appropriate or re-
quired to assure that the United States contribution to the 
development of the Convention recognizes the needs of the 
United States business community for a Convention which 
reflects sound principles of commodity identification, modern 
producing methods, and current trading patterns and practices. 
(2) In carrying out this subsection, the Secretary of the Treas-
ury, the Secretary of Commerce, and the Commission shall— 
(A) solicit and consider the views of interested parties in 
the private sector (including a functional advisory commit-
tee) and of interested Federal agencies; 
(B) establish procedures for reviewing, and developing 
appropriate responses to, inquiries and complaints from 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1153 
interested parties concerning articles produced in and ex-
ported from the United States; and 
(C) where appropriate, establish procedures for— 
(i) ensuring that the dispute settlement provisions 
and other relevant procedures available under the 
Convention are utilized to promote United States 
export interests, and 
(ii) submitting classification questions to the Har-
monized System Committee of the Customs Coopera-
tion Council, 
(c) AVAILABILITY OF CUSTOMS COOPERATION COUNCIL PUBLICA-
TIONS.—As soon as practicable after the date of the enactment of the 
Omnibus Trade and Competitiveness Act of 1988, and periodically 
thereafter as appropriate, the Commission shall see to the publica-
tion of— 
(1) summary records of the Harmonized System Committee of Records. 
the Customs Cooperation Council; and 
(2) subject to applicable copyright laws, the Explanatory 
Notes, Classification Opinions, and other instruments of the 
Customs Cooperation Council relating to the Convention. 
SEC. 1211. TRANSITION TO THE HARMONIZED TARIFF SCHEDULE. 
19 USC 3011. 
(a) EXISTING EXECUTIVE ACTIONS.— 
(1) The appropriate officers of the United States Government 
shall take whatever actions are nec^sary to conform, to the 
fullest extent practicable, with the tariff classification system of 
the ELarmonized Tariff Schedule all proclamations, r^ulations, 
rulings, notices, findings, determinations, orders, recommenda-
tions, and other written actions that— 
(A) are in effect on the day before the effective date of the 
Harmonized Tariff Schedule; and 
(B) contain references to the tariff classification of arti-
cles under the old Schedules. 
(2) Neither the repeal of the old Schedules, nor the failure of 
any officer of the United States Government to make the 
conforming changes required under paragraph (1), shall affect 
to any extent the validity or effect of the proclamation, r^ula-
tion, ruling, notice, finding, determination, order, recommenda-
tion, or other action referred to in paragraph (1). 
(b) GENERALIZED SYSTEM OF PREFERENCES CONVERSION.— 
(1) The review of the proposed conversion of the Generalized 
S^tem of Preferences program to the Convention tariff nomen-
clature, initiated by the Office of the United States Trade 
Representative by notice published in the Federal Roister on 
December 8,1986 (at page 44,163 of volume 51 thereof), shall be 
treated as satisfying the requirements of sections 503(a) and 
504(cX3) of the Trade Act of 1974 (19 U.S.C. 2463(a), 2464(cX3)). 
(2) In applying section 504(cXl) of the Trade Act of 1974 (19 
U.S.C. 2464(cXl)) for calendar year 1989, the reference in such 
section to July 1 shall be treated as a reference to September 1. 
(c) IMPORT RESTRICTIONS UNDER THE AGRICULTURAL ADJUSTMENT 
ACT.— 
(1) Whenever the President determines that the conversion of 
an import restriction proclaimed under section 22 of the Agri-
cultural AcUustment Act (7 U.S.C. 624) from part 3 of the 
Appendix to the old Schedules to subchapter IV of chapter 99 of 
the Harmonized Tariff Schedule results in— 
102 STAT. 1154 
PUBLIC LAW 100-418—AUG. 23, 1988 
Ck)urts, U.S. 
Reports. 
(A) an article that was previously subject to the restric-
tion being excluded from the restriction; or 
(B) an article not previously subject to the restriction 
being included within the restriction; 
the President may proclaim changes in subchapter IV of 
chapter 99 of the Harmonized Tariff Schedule to conform that 
subchapter to the fullest extent possible to part 3 of the Appen-
dix to the old Schedules. 
(2) Whenever the President determines that the conversion 
from headnote 2 of subpart A of part 10 of schedule 1 of the old 
Schedules to Additional U.S. Note 2, chapter 17, of the Har-
monized Tariff Schedule results in— 
(A) an article that was previously covered by such head-
note being excluded from coverage; or 
(B) an article not previously covered by such headnote 
being included in coverage; 
the President may proclaim changes in Additional U.S. Note 2, 
chapter 17 of the Harmonized Tariff Schedule to conform that 
note to the fullest extent possible to headnote 2 of subpart A of 
part 10 of schedule 1 of the old Schedules. 
(3) No change to the Harmonized Tariff Schedule may be 
proclaimed under paragraph (1) or (2) after June 30, 1990. 
(d) CERTAIN PROTESTS AND PETITIONS UNDER THE CUSTOMS LAW.— 
(IXA) This subtitle may not be considered to divest the courts 
of jurisdiction over— 
(i) any protest filed under section 514 of the Tariff Act of 
1930(19U.S.C. 1514);or 
(ii) any petition by an American manufacturer, producer, 
or wholesaler under section 516 of such Act (19 U.S.C. 1516); 
covering articles entered before the effective date of the Har-
monized Tariff Schedule. 
(B) Nothing in this subtitle shall affect the jurisdiction of the 
courts with respect to articles entered after the effective date of 
the Harmonized Tariff Schedule. 
(2)(A) If any protest or petition referred to in paragraph (IXA) 
is sustained in whole or in part by a final judicial decision, the 
entries subject to that protest or petition and made before the 
effective date of the Harmonized Tariff Schedule shall be liq-
uidated or reliquidated, as appropriate, in accordance with such 
final judicial decision under the old Schedules. 
(B) At the earliest practicable date after the effective date of 
the Harmonized Tariff Schedule, the Commission shall initiate 
an investigation under section 332 of the Tariff Act of 1930 (19 
U.S.C. 1332) of those final judicial decisions referred to in 
subparagraph (A) that— 
(i) are published during the 2-year period beginning on 
February 1,1988; and 
(ii) would have affected tariff treatment if they had been 
published during the period of the conversion of the old 
Schedules into the format of the Convention. 
No later than September 1, 1990, the Commission shall report 
the results of the investigation to the President, the Committee 
on Ways and Means, and the Committee on Finance, and shall 
recommend those changes to the Harmonized Tariff Schedule 
that the Commission would have recommended if the final 
decisions concerned had been made before the conversion into 
the format of the Convention occurred. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1155 
(3) The President shall review all changes recommended by President of U.S. 
the Commission under paragraph (2XB) and shall, as soon as 
practicable, proclaim such of those changes, if any, which he 
decides are necessary or appropriate to conform such Schedule 
to the final judicial decisions. Any such change shall be effective 
with respect to— 
(A) entries made on or after the date of such proclama-
tion; and 
(B) entries made on or after the effective date of the 
Harmonized Tariff Schedule if, notwithstanding section 514 
of the Tariff Act of 1930 (19 U.S.C. 1514), application for 
liquidation or reliquidation thereof is made by the importer 
to the customs officer concerned within 180 days after the 
effective date of such proclamation. 
(4) ff any protest or petition referred to in paragraph (IXA) is 
not sustained in whole or in part by a final judicial decision, the 
entries subject to that petition or protest and made before the 
effective date of the Harmonized Tariff Schedule shall be liq-
uidated or reliquidated, as appropriate, in accordance with the 
final judicial decision under the old Schedules. 
SEC. 1212. REFERENCE TO THE HARMONIZED TARIFF SCHEDULE. 
19 USC 3012. 
Any reference in any law to the "Tariff Schedules of the United 
States", "the Tariff Schedules", "such Schedules", and any other 
general reference that clearly refers to the old Schedules shall be 
treated as a reference to the Harmonized Tariff Schedule. 
SEC. 1213. TECHNICAL AMENDMENTS. 
(a) TRADE ACT OF 1974.—Section 604 of the Trade Act of 1974 (19 
U.S.C. 2483) is amended by striking out "including modification," 
and inserting "including removal, modification,". 
(b) TARIFF CLASSIFICATION ACT OF 1962.—Section 201 of the Tariff 
aassification Act of 1962 (76 Stat. 72,74) is repealed. 
19 USC prec. 
(c) TARIFF ACT OF 1930.—Section 315(d) of the Tariff Act of 1930 1202 note. 
(19 U.S.C. 1315(d)) is amended by adding at the end thereof the 
following: "This subsection shall not apply with respect to increases 
in rates of duty resulting from the enactment of the Harmonized 
Tariff Schedule of the United States to replace the Tariff Schedules 
of the United States.". 
SEC. 1214. CONFORMING AMENDMENTS. 
(a) CODIFIED TITLES.— 
(1) Section 374(aX3) of title 10 of the United States Code is 
amended by striking out "general headnote 2 of the Tariff 
Schedules of the United States" and inserting "general note 2 of 
the Harmonized Tariff Schedule of the United States". 
(2) Section 301 of title 13 of the United States Code is 
amended— 
(A) by striking out "Tariff Schedules of the United States 
Annotated and general statistical headnote 1 thereof," in 
subsection (b) and inserting "Harmonized Tariff Schedule of 
the United States Annotated for Statistical Reporting Pur-
poses and general statistical note 1 thereof,"; 
(B) by striking out "item in the Tariff Schedules of the 
United States Annotated" in subsection (e) and inserting 
"heading or subheading in the Harmonized Tariff Schedule 
102 STAT. 1156 
PUBLIC LAW 100-418—AUG. 23, 1988 
of the United States Annotated for Statistical Reporting 
Purposes"; and 
(C) by amending subsection (£)— 
(i) by striking out "item of the Tariff Schedules of the 
United States Annotated" and inserting "heading or 
subheading in the Harmonized Tariff Schedule of the 
United States Annotated for Statistical Reporting 
Purposes", and 
(ii) by striking out "under that item" each place it 
appears and inserting "under that heading or sub-
heading". 
(3) Section 1295(aX7) of title 28 of the United States Code is 
amended by striking out "headnote 6 to schedule 8, part 4, of 
the Tariff Schedules of the United States" and inserting "U.S. 
note 6 to subchapter X of chapter 98 of the Harmonized Tariff 
Schedule of the United States". 
(b) TOBACCO ADJUSTMENT ACT OF 1983.—Section 213(aX2) of the 
Tobacco Adjustment Act of 1983 (7 U.S.C. 511r(a)(2)) is amended by 
striking out "Schedule 1, Part 13, Tariff Schedules of the United 
States" and inserting "chapter 24 of the Harmonized Tariff 
Schedule of the United States". 
(c) FEDERAL HAZARDOUS SUBSTANCES ACT.—Section 15 of the Fed-
eral Hazardous Substances Act (15 U.S.C. 1274) is amended— 
(1) by striking out "general headnote 2 to the Tariff Schedules 
of the United States" in subsection (b) and inserting "general 
note 2 of the Harmonized Tariff Schedule of the United States"; 
and 
(2) by striking out "general headnote 2 to the Tariff Schedules 
of the United States" in subsection (cX2) and inserting "general 
note 2 of the Harmonized Tariff Schedule of the United States". 
(d) CONSUMER PRODUCT SAFETY ACT.—Section 15(d) and section 
17(a) of the Consumer Product Safety Act (15 U.S.C. 2064(d) and 
2066(a)) are each amended by striking out "general headnote 2 to 
the Tariff Schedules of the United States" and inserting "general 
note 2 of the Harmonized Tariff Schedule of the United States". 
(e) TOXIC SUBSTANCES CONTROL ACT.— 
(1) Section 3(7) of the Toxic Substances Control Act (15 U.S.C. 
2602(7)) is amended by striking out "general headnote 2 of the 
Tariff Schedules of the United States" and inserting "general 
note 2 of the Harmonized Tariff Schedule of the United States". 
(2) Section 13(aXl) of such Act (15 U.S.C. 2612(aXl)) is 
amended by striking out "general headnote 2 to the Tariff 
Schedules of the United States" and inserting "general note 2 of 
the Harmonized Tariff Schedule of the United States". 
if) EMERGENCY WETLANDS RESOURCES ACT OF 1986.—Section 203 of 
the Emergency Wetlands Resources Act of 1986 (16 U.S.C. 3912) is 
amended by striking out "subpart A of part 5 of schedule 7 of the 
Tariff Schedules of the United States" and inserting "chapter 93 of 
the Harmonized Tariff Schedule of the United States". 
(g) COBRA OF 1985.—Section 13031 of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c) is amended— 
(1) by striking out "schedule 8 of the Tariff Schedules of the 
United States" in subsection (aX9XA) and inserting "chapter 98 
of the Harmonized Tariff Schedule of the United States"; 
(2) by striking out "General Headnote 3(eXvi) or (vii)" in 
subsection (aX9)(C) and inserting "general note 3(cXv)"; and 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1157 
(3) by striking out "headnote 2 of the General Headnotes and 
Rules of Interpretation of the Tariff Schedules of the United 
States" in subsection (cX3) and inserting "general note 2 of the 
Harmonized Tariff Schedule of the United States". 
(h) TARIFF ACT OF 1930.—The Tariff Act of 1930 is amended as 
follows: 
(1) Section 312(f) (19 U.S.C. 1312(f)) is amended— 
(A) by amending paragraph (1)— 
(i) by striking out "schedule 6, part 1, of the Tariff 
Schedules of the United States," and inserting "chapter 
26 of the Harmonized Tariff Schedule of the United 
States,"; 
(ii) by striking out "schedule 6, part 2, of such sched-
ules," and inserting "chapters 71 through 83 of the 
Harmonized Tariff Schedule of the United States,"; and 
(iii) by striking out the quotation marks surrounding 
"metal waste and scrap" and "unwrought metal"; 
(B) by amending paragraph (2XA)— 
(i) by striking out "part 2 of schedule 6" and inserting 
"chapters 71 through 83 of the Harmonized Tariff 
Schedule of the United States"; 
(ii) by striking out "part 1 of schedule 6" and insert-
ing "chapter 26 of the Harmonized Tariff Schedule of 
the United States"; and 
(iii) by striking out the quotation marks surrounding 
"unwrought metal"; and 
(C) by amending paragraph (3) by striking out "as defined 
in part 1 of schedule 6" and inserting "of chapter 26 of the 
Harmonized Tariff Schedule of the United States". 
(2) Section 321(a)(2XB) (19 U.S.C. 1321(aX2XB)) is amended by 
striking out "item 812.25 or 813.31" and inserting "subheading 
9804.00.30 or 9804.00.70". 
(3) Section 337(j) (19 U.S.C. 1337g)) is amended by striking out 
"general headnote 2 of the Tariff Schedules of the United 
States" and inserting "general note 2 of the Harmonized Tariff 
Schedule of the United States". 
(4) Section 466(f) (19 U.S.C. 1466(f)) is amended by striking out 
"headnote 3 to schedule 6, part 6, subpart C of the Tariff 
Schedules of the United States" and inserting "general note 
3(cXiv) of the Harmonized Tariff Schedule of the United States". 
(5) Section 498(aXl) (19 U.S.C. 1498(aXl)) is amended— 
(A) by striking out subparagraphs (A), (B), and (C) and 
inserting the following: 
"(A) chapters 50 through 63; 
"(B) chapters 39 through 43, 61 through 65, 67 and 95; and 
"(C) subchapters III and IV of chapter 99;"; and 
(B) bv striking out "of the Tariff Schedules of the United 
States,' and inserting "of the Harmonized Tariff Schedule 
of the United States, . 
(i) AUTOMOTIVE PRODUCTS TRADE ACT OF 1965.—Section 201 (a) and 
(b) of the Automotive Products Trade Act of 1965 (19 U.S.C. 2011 (a) 
and (b)) are each amended by striking out "Tariff Schedules of the 
United States" and inserting "Harmonized Tariff Schedule of the 
United States". 
(j) TRADE ACT OF 1974.—The Trade Act of 1974 is amended as 
follows: 
102 STAT. 1158 
PUBLIC LAW 100-418—AUG. 23, 1988 
(1) Section 128(b) (19 U.S.C. 2138(b)) is amended to read as 
follows: 
President of U.S. 
"(b) The President shall exercise his authority under subsection 
(a) of this section only with respect to the following subheadings 
listed in the Harmonized Tariff Schedule of the United States— 
"(1) transistors (provided for in subheadings 8541,21.00, 
8541.29.00, and 8541.40.70); 
"(2) diodes and rectifiers (provided for in subheadings 
8541.10.00,8541.30.00, and 8541.40.60); 
"(3) monolithic integrated circuits (provided for in subhead-
ings 8542.11.00 and 8542.19.00); 
"(4) other integrated circuits (provided for in subheading 
8542.20.00); 
"(5) other components (provided for in subheading 8541.50.00); 
"(6) parts of semiconductors (provided for in subheadings 
8541.90.00 and 8542.90.00); and 
"(7) imits of automatic data processing machines (provided for 
in subheadings 8471.92.20, 8471.92.30, 8471.92.70, 8471.92.80, 
8471.93.10, 8471.93.15, 8471.93.30, 8471.93.50, 8471.99.15, and 
8471.99.60) and parts (provided for in subheading 8473.30.40), all 
the foregoing not incorporating a cathode ray tube.". 
(2) Section 203(f) (19 U.S.C. 2253(f)) is amended— 
(A) by striking out "item 806.30 or 807.00 of the Tariff 
Schedules of the United States" in paragraph (1) and in-
serting "subheadings 9802.00.60 or 9802.00.80 of the 
Harmonized Tariff Schedule of the United States"; and 
(B) by striking out "item 806.30 or item 807.00" in para-
graph (3) and inserting "subheading 9802.00.60 or sub-
heading 9802.00.80 of the Harmonized Tariff Schedule of 
the United States". 
(3) Section 404(c) (19 US.C. 2434(c)) is amended by striking out 
"Tariff Schedules for the United States" and inserting "Har-
monized Tariff Schedule of the United States". 
(4) Section 407(cX3) and section 604 (19 U.S.C. 2437(cX3) and 
2483) are each amended by striking out "Tariff Schedules of the 
United States" and inserting "Harmonized Tariff Schedule of 
the United States". 
(5) Section 601(7) (19 U.S.C. 2481(7)) is amended by striking 
out "schedules 1 tlut)ugh 7 of the Tariff Schedules of the United 
States" and inserting "chapters 1 through 97 of the Harmonized 
Tariff Schedule of the United States". 
(k) TRADE AGREEMENTS ACT OF 1979.—Section 1102(bX3) of the 
Trade Agreements Act of 1979 (19 U.S.C. 258103X3)) is amended by 
striking out "headnotes of the Tariff Schedules of the United 
States and inserting "notes of the Harmonized Tariff Schedule of 
the United States" 
a) ACT OF MARCH 2, 1897.—Section 1 of the Act of March 2, 1897 
(29 Stat. 604) (21 U.S.C. 41) is amended by strikmg out "Tariff 
Schedules of the United States" and inserting "Harmonized Tariff 
Schedule of the United States". 
(m) CONTROLLED SUBSTANCES IMPORT AND EXPORT ACT.—Section 
1001(aX2) of the Controlled Substances Import and Export Act (21 
U.S.C. 951(aX2)) is amended by striking out "general headnote 2 to 
the Tariff Schedules of the United States" and inserting "general 
note 2 of the Harmonized Tariff Schedule of the United States". 
(n) COMPREHENSIVE ANTI-APARTHEID ACT OF 1986.—Section 309(b) 
of the Comprehensive Anti-Apartheid Act of 1986 (22 U.S.C. 50590))) 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1159 
is amended by striking out "item 812.10 or 813.10 of the Tariff 
Schedules of the United States" and inserting 
"subheading 
9804.00.20 or 9804.00.45 of the Harmonized Tariff Schedule of the 
United States". 
(o) STRATEGIC AND CRITICAL MATERIALS STOCK PIUNG ACT.—Sec-
tion 13 of the Strategic and Critical Materials Stock Piling Act (50 
U.S.C. 98h-4) is amended by striking out "general headnote 3(d) of 
the Tariff Schedules of the United States" and inserting "general 
note 3(b) of the Harmonized Tariff Schedule of the United States". 
(p) INTERNAL REVENUE CODE OF 1986.— 
(1) Section 7652(e)(3) of the Internal Revenue Code of 1986 (26 
U.S.C. 7652(eX3)) is amended by striking out "item 169.13 or 
169.14 of the Tariff Schedules of the United States" and insert-
ing "subheading 2208.40.00 of the Harmonized Tariff Schedule 
ofthe United States". 
(2) Section 9504(b)(lXB) of the Internal Revenue Code of 1986 
(26 U.S.C. 9504(b)(1)(B)) is amended— 
(A) by striking out "subpart B of part 5 of schedule 7 of 
the Tariff Schedules of the United States" and inserting 
"heading 9507 of the Harmonized Tariff Schedule of the 
United States"; and 
(B) by striking out "subpart D of part 6 of schedule 6 of 
such Schedules 
and inserting "chapter 89 of the Har-
monized Tariff Schedule of the United States". 
(q) CARIBBEAN BASIN ECONOMIC RECOVERY ACT.—The Caribbean 
Basin Economic Recovery Act is amended as follows: 
(1) Section 212(a)(1)(C) (19 U.S.C. 2702(aXlXC)) is amended by 
striking out " 'TSUS' means Tariff Schedules of the United 
States' and inserting " 'HTS' means Harmonized Tariff Sched-
ule ofthe United States". 
(2) Section 213 (19 U.S.C. 2703) is amended as follows: 
(A) Subsection Ot)) is amended— 
(i) by striking out "part 10 of schedule 4 of the TSUS" 
in paragraph (4) and inserting "headings 2709 and 2710 
of the Harmonized Tariff Schedule of the United 
•' 
States"; and 
(ii) by striking out "TSUS" in paragraph (5) and 
inserting "HTS". 
(B) Subsection (c) is amended— 
(i) bv striking out "items 155.20 and 155.30 of the 
TSUS' in paragraph (IXAXi) and inserting "subhead-
ings 
1701.11.00, 1701.12.00, 1701.91.20, 1701.99.00, 
1702.90.30, 1806.10.40, and 2106.90.10 of the Har-
monized 'Tariff Schedule of the United States"; and 
(ii) by striking out "subpart B of part 2 of schedule 1 
of the TSUS" in paragraph (IXAXii) and inserting 
"chapters 2 and 16 of the Harmonized Tariff Schedule 
of the United States". 
(C) Subsection (d) is amended by striking out "items 
155.20 and 155.30 ofthe TSUS" and inserting "subheadings 
1701.11.00, 1701.12.00, 1701.91.20, 1701.99.00, 1702.90.30, 
1806.10.40, and 2106.90.10 of the Harmonized Tariff Sched-
ule of the United States". 
(D) Subsection (f)(5) is amended— 
(i) by amending subparagraph (A) to read as follows: 
"(A) live plants and fresh cut flowers provided for in chapter 6 
oftheHTS;^'; 
102 STAT. 1160 
PUBLIC LAW 100-418—AUG. 23, 1988 
(ii) by striking out "items 135.10 through 138.46 of 
the TSUS" in subparagraph (B) and inserting "head-
ings 0701 through 0709 (except subheading 0709.52.00) 
and heading 0714 of the HTS"; 
(iii) by striking out subparagraph (C); 
(iv) by redesignating subparagraph (D) as subpara-
graph (C) and by striking out "items 146.10, 146.20, 
146.30, 146.50 through 146.62, 146.90, 146.91, 147.03 
through 147.33,147.50 through 149.21 and 149.50 of the 
TSUS" in such redesignated subparagraph and insert-
ing "subheadings 0804.20 through 0810.90 (except cit-
rons of subheading 0805.90.00, tamarinds and kiwi fruit 
of subheading 0810.90.20, and cashew apples, mameyes 
colorados, sapodillas, soursops and sweetsops of sub-
heading 0810.90.40) of the HTS"; 
(v) by striking out subparagraph (E); and 
(vi) by redesignating subparagraph (F) as subpara-
graph (E) and by striking out "items 165.25 and 165.35 
of the TSUS" in such redesignated subparagraph 
and inserting "subheadings 2009.11.00, 2009.19.40, 
2009.20.40,2009.30.20, and 2009.30.60 of the HTS". 
(r) ACT RELATING TO REFORESTATION TRUST FUND.—Section 
3030)X1) of the Act of October 14, 1980 (16 U.S.C. 1606a(bXl)) is 
amended to read as follows: 
"(bXD Subject to the linutation in paragraph (2), the Secretary of 
the Treasury shall transfer to the Trust Fund an amount equal to 
the sum of the tariffs received in the Treasury after January 1,1989, 
under headings 4401 through 4412 and subheadings 4418.50.00, 
4418.90.20, 4420.10.00, 4420.90.80, 4421.90.10 through 4421.90.20, and 
4421.90.70 of chapter 44, subheadings 6808.00.00 and 6809.11.00 of 
chapter 68 and subheading 9614.10.00 of chapter 96 of the Har-
monized Tariff Schedule of the United States.". 
(s) TRADE AND TARIFF ACT OF 1984.—The Trade and Tariff Act of 
1984 (Public Law 98-573) is amended as follows: 
98 Stat. 2990. 
(1) Section 231(aXl) is amended by striking out "Tariff Sched-
ules of the United States" and inserting "Harmonized Tariff 
Schedule of the United States". 
98 Stat. 2994. 
(2) Section 239 is amended by striking out "headnote 6 of part 
4 of schedule 8 of the Tariff Schedules of the United States" and 
inserting "U.S. note 6 to subchapter X of chapter 98 of the 
Harmonized Tariff Schedule of the United States". 
98 Stat. 2994. 
(3) Section 240 is amended— 
(A) by striking out "headnote 6(a) of part 4 of schedule 8 
of the Tariff Schedules of the United States" in subsection 
(aXlXA) and inserting "U.S. note 6(a) to subchapter X of 
chapter 98 of the Harmonized Tariff Schedule of the United 
States"; and 
(B) by striking out "headnote 1 of part 4 of schedule 8" in 
subsection (e) and inserting "U.S. note 1 to subchapter X of 
chapter 98 of the Harmonized Tsiriff Schedule of the United 
States" 
19 use 2112 
(4) Section 404(e) is amended— 
note. 
(A) by amending paragraphs (1) and (2) to read as follows: 
"(1) live plants and fresh cut flowers provided for in chapter 6 
of the Harmonized Tariff Schedule of the United States (19 
U.S.C. 1202, hereinafter referred to as the 'HTS'); 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1161 
"(2) vegetables, edible nuts or fruit provided for in chapters 7 
and 8, heading 1105, subheadings 1106.10.00 and 1106.30, head-
ing 1202, subheadings 1214.90.00 and 1704.90.60, headings 2001 
through 2008 (excluding subheadings 2001.90.20 and 2004.90.10) 
and subheading 2103.20.40 of the HTS;"; 
(B) by striking out paragraphs (3), (4), and (5); and 
(C) by striking out paragraph (6) and inserting the 
following: 
"(3) concentrated citrus fruit juice provided for in subhead-
ings 2009.11.00, 2009.19.40, 2009.20.40, 2009.30.20, and 2009.30.60 
of the HTS.". 
(t) TRADE AGREEMENTS ACT OF 1979.—The Trade Agreements Act 
of 1979 (Public Law 96-39) is amended as follows: 
(1) Section 701(cXl) is amended to read as follows: 
1
9 U
S
C 1202 
"(1) QUOTA CHEESE.—The term 'quota cheese' means the arti- ^°^-
cles provided for in the following subheadings of the Har-
monized Tariff Schedule of the United States: 
"(A) 0406.10.00 (except whey cheese, curd, and cheese, 
cheese substitutes for cheese mixtures containing: Roque-
fort, Stilton produced in the United Kingdom, Bryndza, 
Gjetost, Goya in original loaves, Gammelost and Nokkelost, 
cheese made from sheep's and goat's milk and soft ripened 
cow s milk cheeses)* 
"(B) 0406.20.20 (except Stilton produced in the United 
Kingdom); 
"(C) 0406.20.30; 
"(D) 0406.20.35; 
"(E) 0406.20.40; 
"(F) 0406.20.50; 
"(G) 0406.20.60 (except cheeses containing or processed 
from: Stilton produced in the United Kingdom, Roquefort, 
Brjrndza, Gietost, Gammelost and Nokkelost, cheese made 
from sheep s and goat's milk and soft ripened cow's milk 
f ' j '•• 
cll.66S6sV 
"(H) 0406.30.10 (except Stilton produced in the United 
Kingdom); 
"(I) 0406.30.20; 
"(J) 0406.30.30; 
"(K) 0406.30.40; 
"(L) 0406.30.50; 
"(M) 0406.30.60 (except cheeses containing or processed 
from: Stilton produced in the United Kingdom, Roquefort, 
Bryndza, Gietost, Gammelost and Nokkelost, cheese made 
from sheep s and goat's milk and soft ripened cow's milk 
c n 
66S6S 
V 
"(N) 0406.40.60 (except Stilton produced in the United 
Kingdom); 
"(O) 0406.40.80 (except Stilton produced in the United 
Kingdom); 
"(P) 0406.90.10; 
"(Q) 0406.90.15; 
"(R) 0406.90.30 (except Goya in original loaves); 
"(8)0406.90.35; 
"(T) 0406.90.40; 
"(U) 0406.90.45 (except Gammelost and Nokkelost); 
"(V) 0406.90.65; 
"(W) 0406.90.70; and 
102 STAT. 1162 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(X) 0406.90.80 (except cheeses containing or processed 
from: Stilton produced in the United Kingdom, Roquefort, 
Br3mdza, Gjetost, Gammelost and Nokkelost, cheese made 
from sheep s and goat's milk and soft ripened cow's milk 
19 use 1202 
(2) Section 703 is amended— 
"°*® 
(A) by striking out "item 950.15 of the Tariff Schedules of 
the United States" and inserting "subheading 9904.10.63 of 
the Harmonized Tariff Schedule of the United States"; and 
(B) by striking out "item 950.16 of the Tariff Schedules of 
the United States" and inserting "subheading 9904.10.66 of 
the Harmonized Tariff Schedule of the United States". 
19 use 1202 
(3) Section 855 is amended— 
^°^- 
(A) by striking out "item set forth in subpart D of part 12 
of sch^ule 1 of the Tariff Schedules of the United States" 
in subsection (a) and inserting "article provided for in 
subheading 2207.10.30 and heading 2208 of the Harmonized 
Tariff Schedule of the United States"; and 
(B) by striking out "item set forth in rate column num-
bered 1 of subpart D of part 12 of schedule 1 of the Tariff 
Schedules of the United States" in subsection (b) and insert-
ing "article as set forth in rate of duty column numbered 1 
of subheading 2207.10.30 and heading 2208 of the Har-
monized Tariff Schedule of the United States", 
(u) MEAT IMPORT ACT OP 1979.—The Meat Import Act of 1979 (19 
U.S.C. 1202 note) is amended— 
(1) by amending subsection (bX2)— 
(A) by striking out "Tariff Schedules of the United 
States" and inserting "Harmonized Tariff Schedule of the 
United States", 
(B) by striking out "item 106.10" in subparagraph (A) and 
inserting "subheadings 0201.10.00, 0201.20.60, 0201.30.60, 
0202.10.00,0202.20.60 and 0202.30.60", 
(C) by striking out "cattle" in subparagraph (A) and 
inserting "bovine", 
(D) by striking out "items 106.22 and 106.25" m subpara-
graph (B) and inserting "subheadings 0204.50.00, 0204.21.00, 
0204.22.40, 
0204.23.40, 
0204.41.00, 
0204.42.40, 
and 
0204.43.40'*, and 
(E) by amending subparagraph (C) to read as follows: 
"(C) subheadings 0201.20.40, 0201.30.40, 0202.20.40, and 
0202.30.40 (relating to processed meat of beef or veal other 
than high quality beef cuts)."; 
(2) by striking out "items 100.40, 100.43, 100.45, 100.53, and 
100.55 of such Schedules" in the sentence following subsection 
(cX2) and inserting "subheadings 0102.90.20 and 0102.90.40 of 
the Harmonized Tariff Schedule of the United States"; and 
(3) by striking out "item 107.61 of the Tariff Schedules of the 
United States" in subsection (fXD and inserting "subheadings 
0201.20.20, 0201.30.20, 0202.20.20, and 0202.30.20 of the Har-
monized Tariff Schedule of the United States". 
(v) NATIONAL WOOL ACT OF 1954.—Sections 704 and 705 of the 
National Wool Act of 1954 (7 U.S.C. 1783 and 1784) are each 
amended by striking out "all articles subject to duty under schedule 
11 of the Tariff Act of 1930, as amended" and inserting "wool or fine 
animal hair, and articles thereof, as provided for in the Harmonized 
Tariff Schedule of the United States'. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1163 
(w) AGRICULTURAL ACT OF 1949.—Section 103(f)(3) of the Agricul-
tural Act of 1949 (7 U.S.C. 1444(fK3)) is amended by striking out 
"items 955.01 through 955.03 of the Appendix to the Tariff Sched-
ules of the United States" and inserting "subheadings 9904.30.10 
through 9904.30.30 of chapter 99 of the Harmonized Tariff Schedule 
ofthe United States". 
SEC. 1215. NEGOTIATING AUTHORITY FOR CERTAIN ADP EQUIPMENT. 
Section 128(b) of the Trade Act of 1974 (19 U.S.C. 2138(b)), as 
amended by section 1212(jXl) of this Act, is further amended— 
(1) by striking out "and" at the end of paragraph (6); 
(2) by striking out "tube." and inserting "tube; and" in para-
graph (7); and 
(3) by adding at the end thereof the following new paragraph: 
"(8) Digital processing units for automatic data processing 
machines, unhoused, consisting of a printed circuit (single or 
multiple) with one or more electronic integrated circuits or 
other semiconductor devices mounted directly thereon, certified 
as units designed for use other than in an automatic data 
processing machine of subheading 8471.20 (provided for in sub-
heading 8471.91).". 
SEC. 1216. COMMISSION REPORT ON OPERATION OF SUBTITLE. 
19 USC 3005 
The Commission, in consultation with other appropriate Federal ^° ' 
agencies, shall prepare, and submit to the Congress and to the 
President, a report regarding the operation of this subtitle during 
the 12-month period commencing on the effective date of the Har-
monized Tariff Schedule. The report shall be submitted to the 
Congress and to the President before the close of the 6-month period 
beginning on the day after the last day of such 12-month period. 
SEC. 1217. EFFECTIVE DATES. 
19 USC 3001 
(a) ACCESSION TO CONVENTION AND PROVISIONS OTHER THAN THE "° ® 
IMPLEMENTATION OF THE HARMONIZED TARIFF SCHEDULE.—Except as 
provided in subsection (b), the provisions of this subtitle take effect 
on the date of the enactment of the Omnibus Trade and Competi-
tiveness Act of 1988. 
O
t
)
) IMPLEMENTATION OF THE HARMONIZED TARIFF SCHEDULE.—The 
effective date of the Harmonized Tariff Schedule is January 1,1989. 
On such date— 
(1) the amendments made by sections 1204(a), 1213, 1214, and 
1215 take effect and apply with respect to articles entered on or 
after such date; and 
(2) sections 1204(c), 1211, and 1212 take effect. 
102 STAT. 1164 
PUBLIC LAW 100-418—AUG. 23, 1988 
Subtitle C—Response to Unfair International 
Trade Practices 
PART 1—ENFORCEMENT OF UNITED STATES 
RIGHTS UNDER TRADE AGREEMENTS AND RE-
SPONSE TO CERTAIN FOREIGN TRADE PRAC-
TICES 
SEC. 1301, REVISION OF CHAPTER 1 OF TITLE III OF THE TRADE ACT OF 
1974. 
(a) IN GENERAL.—Chapter 1 of title III of the Trade Act of 1974 (19 
U.S.C. 2411 et seq.) is amended to read as follows: 
"CHAPTER 1—ENFORCEMENT OF UNITED STATES RIGHTS 
UNDER TRADE AGREEMENTS AND RESPONSE TO CER-
TAIN FOREIGN TRADE PRACTICES 
19 use 2411. 
"SEC. 301. ACTIONS BY UNITED STATES TRADE REPRESENTATIVE. 
"(a) MANDATORY ACTION.— 
"(1) If the United States Trade Representative determines 
under section 304(aXl) that— 
"(A) the rights of the United States under any trade 
agreement are being denied; or 
"(B) an act, policy, or practice of a foreign country— 
"(i) violates, or is inconsistent with, the provisions of, 
or otherwise denies benefits to the United States under, 
any trade agreement, or 
"(ii) is unjustifiable and burdens or restricts United 
States commerce; 
the Trade Representative shall take action authorized in subsec-
tion (c), subject to the specific direction, if any, of the President 
r^arding any such action, and shall taJce all other appropriate 
and feasible action within the power of the President that the 
President may direct the Trade Representative to take under 
this subsection, to enforce such rights or to obtain the elimi-
nation of such act, policy, or practice. 
"(2) The Trade Representative is not required to take action 
under paragraph (1) in any case in which— 
(A) the Contracting Parties to the General Agreement 
on Tariffs and Trade have determined, a panel of experts 
has reported to the Contracting Parties, or a ruling issued 
under the formal dispute settlement proceeding provided 
under any other trade agreement finds, that— 
"(i) the rights of the United States under a trade 
agreement are not being denied, or 
"(ii) the act, policy, or practice— 
"(I) is not a violation of, or inconsistent with, the 
rights of the United States, or 
"(II) does not deny, nullify, or impair benefits to 
the United States under any trade agreement; or 
"(B) the Trade Representative finds that— 
"(i) the foreign country is taking satisfactory meas-
ures to grant the rights of the United States under a 
trade agreement. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1165 
"(ii) the foreign country has— 
"(I) agreed to eliminate or phase out the act, 
policy, or practice, or 
"(II) agreed to an imminent solution to the 
burden or restriction on United States commerce 
that is satisfactory to the Trade Representative, 
"(iii) it is impossible for the foreign country to 
achieve the residts described in clause (i) or (ii), as 
appropriate, but the foreign country agrees to provide 
to the United States compensatory trade benefits that 
are satisfactory to the Trade Representative, 
"(iv) in extraordinary cases, where the taking of 
action under this subsection would have an adverse 
impact on the United States economy substantially out 
of proportion to the benefits of such action, taking into 
account the impact of not taking such action on the 
credibility of the provisions of this chapter, or 
"(v) the taking of action imder this subsection would 
cause serious harm to the national security of the 
United States. 
"(3) Any action taken under paragraph (1) to eliminate an act, 
policy, or practice shall be devised so as to affect goods or 
services of the foreign country in an amount that is equivalent 
in value to the burden or restriction being imposed by that 
country on United States conunerce. 
"(b) DisousnONARY AcnoN.—If the Trade Representative deter-
mines under section 304(aXl) that— 
"(1) an act, policy, or practice of a foreign country is unreason-
able or discriminatory and burdens or restricts United States 
commerce, and 
"(2) action by the United States is appropriate, the Trade 
Representative shall take all appropriate and feasible action 
authorized under subsection (c), subject to the specific direction, 
if any, of the President r^arding any such action, and all other 
appropriate and feasible action within the power of the Presi-
dent tiiat the President may direct the Trade Representative to 
take under this subsection, to obtain the elimination of that act, 
policy, or practice. 
"(c) SCOPE OF AUTHORITY.— 
"(1) For purposes of carrying out the provisions of subsection 
(a) or (b), the IVade Representative is authorized to— 
"(A) suspend, withdraw, or prevent the application of, 
benefits of trade agreement concessions to carry out a trade 
agreement with the foreign country referred to in such 
subsection; 
"(B) impose duties or other import restrictions on the 
goods of, and, notwithstanding any other provision of law, 
fees or restrictions on the services of, such foreign country 
for such time as the Trade Representative determines 
appropriate; or 
"(C) enter into binding agreements with such foreign 
country that commit such foreign country to— 
"(i) eliminate, or phase out, the act, policy, or prac-
tice that is the subject of the action to be taJcen under 
subsection (a) or (b). 
102 STAT. 1166 
PUBLIC LAW 100-418—AUG. 23, 1988 
Discrimination, 
prohibition. 
"(ii) eliminate any burden or restriction on United 
States commerce resulting from such act, policy, or 
practice, or 
"(iii) provide the United States with compensatory 
trade benefits that— 
"(I) are satisfactory to the Trade Representative, 
and 
"(II) meet the requirements of paragraph (4). 
"(2XA) Notwithstanding any other provision of law governing 
any service sector access authorization, and in addition to the 
authority conferred in paragraph (1), the Trade Representative 
may, for purposes of carrying out the provisions of subsection (a) 
or(b)— 
"(i) restrict, in the manner and to the extent the Trade 
Representative determines appropriate, the terms and 
conditions of any such authorization, or 
"(ii) deny the issuance of any such authorization. 
"(B) Actions described in subparagraph (A) may only be taken 
under this section with respect to service sector access 
authorizations granted, or applications therefor pending, on or 
after the date on which— 
"(i) a petition is filed under section 302(a), or 
"(ii) a determination to initiate an investigation is made 
by the Trade Representative under section 302(b). 
"(C) Before the Trade Representative takes any action under 
this section involving the imposition of fees or other restrictions 
on the services of a foreign country, the Trade Representative 
shall, if the services involved are subject to regulation by any 
agency of the Federal Government or of any State, consult, as 
appropriate, with the head of the agency concerned. 
(3) The actions the Trade Representative is authorized to 
take under subsection (a) or (b) may be taken against any goods 
or economic sector— 
"(A) on a nondiscriminatory basis or solely against the 
foreign country described in such subsection, and 
"(B) without regard to whether or not such goods or 
economic sector were involved in the act, policy, or practice 
that is the subject of such action. 
"(4) Any trade agreement described in paragraph (IXCXiii) 
shall provide compensatory trade benefits that benefit the eco-
nomic sector which includes the domestic industry that would 
benefit from the elimination of the act, policy, or practice that is 
the subject of the action to be taken under subsection (a) or (b), 
or benefit the economic sector as closely related as possible to 
such economic sector, unless— 
"(A) the provision of such trade benefits is not feasible, or 
"(B) trade benefits that benefit any other economic sector 
would be more satisfactory than such trade benefits. 
"(5) In taking actions under subsection (a) or 0)), the Trade 
Representative shall— 
"(A) give preference to the imposition of duties over the 
imposition of other import restrictions, and 
(B) if an import restriction other than a duty is imposed, 
consider substituting, on an incremental basis, an equiva-
lent duty for such other import restriction. 
"(6) Any action taken by the Trade Representative under this 
section with respect to export targeting shall, to the extent 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1167 
possible, reflect the full benefit level of the export targeting to 
the beneficiary over the period during which the action taken 
has an effect. 
"(d) DEFINITIONS AND SPECIAL RULES.—For purposes of this 
chapter— 
"(1) The term "commerce" includes, but is not limited to— 
"(A) services (including transfers of information) associ-
ated with international trade, whether or not such services 
are related to specific goods, and 
"(B) foreign direct investment by United States persons 
with implications for trade in goods or services. 
"(2) An act, policy, or practice of a foreign country that 
burdens or restricts United States commerce may include the 
provision, directly or indirectly, by that foreign country of 
subsidies for the construction of vessels used in the commercial 
transportation by water of goods between foreign countries and 
the United States. 
"(3XA) An act, policy, or practice is unreasonable if the act, 
policy, or practice, while not necessarily in violation of, or 
inconsistent with, the international l^al rights of the United 
States, is otherwise unfair and inequitable. 
"(B) Acts, policies, and practices that are unreasonable in-
clude, but are not limited to, any act, policy, or practice, or any 
combination of acts, policies, or practices, which— 
"(i) denies fair and equitable— 
"(I) opportunities for the establishment of an enter-
prise, 
"(II) provision of adequate and effective protection of 
intellectual property rights, or 
"(HI) market opportunities, including the toleration 
by a foreign government of systematic anticompetitive 
activities by private firms or among private firms in 
the foreign country that have the effect of restricting, 
on a basis that is inconsistent with commercial consid-
erations, access of United States goods to purchasing by 
such firms, 
"(ii) constitutes export targeting, or 
"(iii) constitutes a persistent pattern of conduct that— 
"(I) denies workers the right of association, 
"(n) denies workers the right to organize and bargain 
collectively, 
"(HI) permits any form of forced or compulsory labor, 
"(IV) fails to provide a minimum age for the employ-
ment of children, or 
"(V) fails to provide standards for minimum wages, 
hours of work, and occupational safety and health of 
workers. 
"(CXi) Acts, policies, and practices of a foreign country de-
scribed in subparagraph (BXiii) shall not be treated as being 
unreasonable if the Trade Representative determines that— 
"(I) the foreign country has taken, or is taking, actions 
that demonstrate a significant and tangible overall 
advancement in providing throughout the foreign country 
(including any designated zone within the foreign country) 
the rights and other standards described in the subclauses 
of subparagraph (BXiii), or 
Maritime 
affairs. 
Copjrrights. 
Patents and 
trademarks. 
Children and 
youth. 
Wages. 
Safety. 
102 STAT. 1168 
PUBLIC LAW 100-418—AUG. 23, 1988 
Federal 
Register, 
publication. 
Copyrights. 
Patents and 
trademarks. 
19 use 2412. 
"(II) such acts, policies, and practices are not inconsistent 
with the level of economic development of the foreign 
country. 
"(ii) The Trade Representative shall publish in the Federal 
Register any determination made under clause (i), together with 
a description of the facts on which such determination is based. 
"(D) For purposes of determining whether any act, policy, or 
practice is unreasonable, reciprocal opportunities in the United 
States for foreign nationals and firms shall be taken into ac-
count, to the extent appropriate. 
"(E) The term 'export targeting' means any government plan 
or scheme consisting of a combination of coordinated actions 
(whether carried out severally or jointly) that are bestowed on a 
specific enterprise, industry, or group thereof, the effect of 
which is to assist the enterprise, industry, or group to become 
more competitive in the export of a class or kind of 
merchandise. 
"(4XA) An act, policy, or practice is unjustifiable if the act, 
policy, or practice is in violation of, or inconsistent with, the 
international legal rights of the United States. 
"(B) Acts, policies, and practices that are unjustifiable in-
clude, but are not limited to, any act, policy, or practice 
described in subparagraph (A) which denies national or most-
favored-nation treatment or the right of establishment or 
protection of intellectual property rights. 
"(5) Acts, policies, and practices that are discriminatory in-
clude, when appropriate, any act, policy, and practice which 
denies national or most-favored-nation treatment to United 
States goods, services, or investment. 
"(6) The term 'service sector access authorization' means any 
license, permit, order, or other authorization, issued under the 
authority of Federal law, that permits a foreign supplier of 
services access to the United States market in a service sector 
concerned. 
"(7) The term 
'foreign 
country' includes any 
foreign 
instrumentality. Any possession or territory of a foreign coun-
try that is administered separately for customs purposes shall 
be treated as a separate foreign countrv. 
"(8) The term "Trade Representative means the United States 
Trade Representative. 
"(9) The term 'interested persons', only for purposes of sec-
tions 302(a)(4XB), 304(b)(lXA), 306(cX2), and 307(aX2), includes, 
but is not limiteid to, domestic firms and workers, representa-
tives of consumer interests. United States product exporters, 
and any industrial user of any goods or services that may be 
affected by actions taken under subsection (a) or (b). 
•SEC. 302. INITIATION OF INVESTIGATIONS. 
"(a) PETITIONS.— 
"(1) Any interested person may file a petition with the Trade 
Representative requesting that action be taken under section 
301 and setting forth the allegations in support of the request. 
"(2) The Trade Representative shall review the allegations in 
any petition filed under paragraph (1) and, not later than 45 
days after the date on which the Trade Representative received 
the 
petition, 
shall 
determine 
whether 
to 
initiate 
an 
investigation. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1169 
"(3) If the Trade Representative determines not to initiate an 
investigation with respect to a petition, the Trade Representa-
tive shall inform the petitioner of the reasons therefor and shall 
publish notice of the determination, together with a summary of 
such reasons, in the Federal Register. 
"(4) If ttie Trade Representative makes an affirmative deter-
mination under paragraph (2) with respect to a petition, the 
Trade Representative shall initiate an investigation reg£u*ding 
the issues raised in the petition. The Trade Representative shall 
publish a summary of the petition in the Federal Register and 
shall, as soon as possible, provide opportunity for the 
presentation of views concerning the issues, including a public 
hearing— 
"(A) within the 30-day period beginning on the date of the 
affirmative determination (or on a date after such period if 
agreed to by the petitioner) if a public hearing within such 
period is requested in the petition, or 
"(B) at such other time if a timely request therefor is 
made by the petitioner or by any interested person. 
"(b) 
iNmATiON 
OP 
INVESTIGATION 
BY 
MEANS 
OTHER 
THAN 
PETITION.— 
"(IXA) If the Trade Representative determines that an inves-
tigation should be initiated under this chapter with respect to 
any matter in order to determine whether the matter is action-
able under section 301, the Trade Representative shall publish 
such determination in l^e Federal Register and shall initiate 
such investigation. 
"(B) The Trade Representative shall, before making any 
determination under subparagraph (A), consult with appro-
priate committees established pursuant to section 135. 
"(2XA) By no later than the date that is 30 days after the date 
on which a country is identified under section 182(aX2), the 
Trade Representative shall initiate an investigation under this 
chapter with respect to any act, policy, or practice of that 
country that— 
"(i) was the basis for such identification, and 
"(ii) is not at that time the subject of any other investiga-
tion or action under this chapter. 
"(B) The Trade Representative is not required under subpara-
graph (A) to initiate an investigation under this chapter with 
respect to any act, policy, or practice of a foreign country if the 
Trside Representative determines that the initiation of the 
investigation would be detrimental to United States economic 
interests. 
"(C) If the Trade Representative makes a determination 
under subparagraph (B) not to initiate an investigation, the 
Trade Reptresentative shall submit to the Congress a written 
report setting forth, in detail— 
"(i) the reasons for tiie determination, and 
"(ii) the United States economic interests that would be 
adversely affected by the investigation. 
"(D) The Trade Representative sludl, from time to time, 
consult with the Roister of Copyrights, the Conunissioner of 
Patents and Trademarks, and odier appropriate officers of the 
Federal Government, during any investigation initiated under 
this chapter by reason of subparagraph (A). 
Federal 
Register, 
publication. 
Federal 
Register, 
publication. 
Federal 
Register, 
publication. 
102 STAT. 1170 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(c) DISCRETION.—In determining whether to initiate an investiga-
tion under subsection (a) or (b) of any act, policy, or practice that is 
enumerated in any provision of section 301(d), the Trade Represent-
ative shall have discretion to determine whether action under sec-
tion 301 would be effective in addressing such act, policy, or practice. 
19 use 2413. 
"SEC. 303. CONSULTATION UPON INITIATION OF INVESTIGATION. 
"(a) IN GENERAL.— 
.., 
"(1) On the date on which an investigation is initiated under 
section 302, the Trade Representative, on behalf of the United 
States, shall request consultations with the foreign country 
concerned regarding the issues involved in such investigation. 
"(2) If the investigation initiated under section 302 involves a 
trade agreement and a mutually acceptable resolution is not 
reached before the earlier of— 
"(A) the close of the consultation period, if any, specified 
in the trade agreement, or 
"(B) the 150th day after the day on which consultation 
was commenced, 
the Trade Representative shall promptly request proceedings on 
the matter under the formal dispute settlement procedures 
provided under such agreement. 
"(3) The Trade Representative shall seek information and 
advice from the petitioner (if any) and the appropriate commit-
tees established pursuant to section 135 in preparing United 
States presentations for consultations and dispute settlement 
proceedings. 
"(b) DELAY OF REQUEST FOR CONSULTATIONS.— 
"(1) Notwithstanding the provisions of subsection (a)— 
"(A) the United States Trade Representative may, after 
consulting with the petitioner (if any), delay for up to 90 
days any request for consultations under subsection (a) for 
the purpose of verifying or improving the petition to ensure 
an adequate basis for consultation, and 
"(B) if such consultations are delayed by reason of 
subparagraph (A), each time limitation under section 304 
shall be extended for the period of such delay. 
"(2) The Trade Representative shall— 
Federal 
"(A) publish notice of any delay under paragraph (1) in 
Register, 
the Federal Register, and 
publication. 
"(B) report to Congress on the reasons for such delay in 
Reports. 
the report required under section 309(a)(3). 
19 use 2414. 
"SEC. 304. DETERMINATIONS BY THE TRADE REPRESENTATIVE. 
"(a) IN GENERAL.— 
"(1) On the basis of the investigation initiated under section 
4 
302 and the consultations (and the proceedings, if applicable) 
under section 303, the Trade Representative shall— 
"(A) determine whether— 
"(i) the rights to which the United States is entitled 
under any trade agreement are being denied, or 
"(ii) any act, policy, or practice described in subsec-
tion (a)(lXB) or (b)(1) of section 301 exists, and 
"(B) if the determination made under subparagraph (A) is 
affirmative, determine what action, if any, the Trade Rep-
resentative should take under subsection (a) or (b) of section 
301. 
, 
' -. M ' 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1171 
Copyrights. 
Patents and 
trademarks. 
"(2) The Trade Representative shall make the determinations 
required under paragraph (1) on or before— 
"(A) in the case of an investigation involving a trade 
agreement (other than the agreement on subsidies and 
countervailing measures described in section 2(cX5) of the 
Trade Agreements Act of 1979), the earlier of— 
"(i) the date that is 30 days after the date on which 
the dispute settlement procedure is concluded, or 
"(ii) the date that is 18 months after the date on 
which the investigation is initiated, or 
"(B) in all cases not described in subparagraph (A) or 
paragraph (3), the date that is 12 months after the date on 
which the investigation is initiated. 
"(3XA) If an investigation is initiated under this chapter by 
reason of section 302(bX2) and the Trade Representative does 
not make a determination described in subpars^aph (B) with 
respect to such investigation, the Trade Representative shall 
make the determinations required under paragraph (1) with 
respect to such investigation by no later than the date that is 6 
months after the date on which such investigation is initiated. 
"(B) If the Trade Representative determines with respect to 
any investigation initiated by reason of section 302(bX2) that— 
"(i) complex or complicated issues are involved in the 
investigation that require additional time, 
"(ii) the foreign country involved in the investigation is 
making substantial progress in drafting or implementing 
l^islative or administrative measures that will provide 
adequate and effective protection of intellectual property 
rights, or 
"(iii) such foreign country is undertaking enforcement 
measures to provide adequate and effective protection of 
intellectual property rights, 
the Trade Representative shall publish in the Federal Register 
notice of such determination and shall make the determinations 
required under paragraph (1) ¥ath respect to such investigation 
by no later than the date that is 9 months after the date on 
which such investigation is initiated. 
"(4) In any case in which a dispute is not resolved before the Reports. 
close of the minimum dispute settlement period provided for in 
a trade agreement (other than the agreement on subsidies and 
countervailing measures described in section 2(cX5) of the Trade 
Agreements Act of 1979), the Trade Representative, within 15 
days after the close of such dispute settlement period, shall 
submit a report to Congress setting forth the reasons why the 
dispute was not resolved within the minimum dispute settle-
ment period, the status of the case at the close of the period, and 
the prospects for resolution. For purposes of this paragraph, the 
minimum dispute settlement period provided for under any 
such trade agreement is the total period of time that results u 
all stages of the formal dispute settlement procedures are car-
ried out within the time limitations specified in the agreement, 
but computed without r ^ a r d to any extension authorized under 
the agreement at any sts^e. 
'(b) CONSULTATION BEFORE DETERMINATIONS.— 
"(1) Before making the determinations required under subsec-
tion (aXD, the Trade Representative, unless expeditious action 
is required-
Federal 
Register, 
publication. 
102 STAT. 1172 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(A) shall provide an opportunity (after giving not less 
than 30 days notice thereof) for the presentation of views by 
interested persons, including a public hearing if requested 
by any interested person, 
"(B) shall obtain advice from the appropriate committees 
established pursuant to section 135, and 
"(C) may request the views of the United States Inter-
national iS-ade Commission regarding the probable impact 
on the economy of the United States of the taking of action 
with respect to any goods or service. 
"(2) If the Trade Representative does not comply with the 
requirements of subparagraphs (A) and (B) of paragraph (1) 
because expeditious action is required, the Trade Representa-
tive shall, after making the determinations under subsection 
(aXD, comply with such subparagraphs. 
Federal 
"(c) PuBUCATiON.—The Trade Representative shall publish in the 
R^ter, 
Federal Roister any determination made under subsection (aXD, 
publication. 
together with a description of the facts on which such determination 
is based. 
19 use 2415. 
"SEC. 305. IMPLEMENTATION OF ACTIONS. 
"(a) ACTIONS TO BE TAKEN UNDER SECTION 301.— 
"(1) Ebccept as provided in paragraph (2), the Trade Represent-
ative shall implement the action the Trade Representative 
determines under section 304(aXl)(B) to take under section 301, 
subject to the specific direction, if any, of the President r^ard-
ing any such action, by no later than the date that is 30 days 
after the date on which such determination is made. 
"(2XA) Except as otherwise provided in this paragraph, the 
Trade Representative may delay, by not more than 180 days, 
the implementation of any action that is to be taken under 
section 301— 
"(i)if-
"(D in the case of an investigation initiated imder 
section 302(a), the petitioner requests a delay, or 
"(11) in the case of an inv^tigation initiated under 
section 302a)Xl) or to which section 304(aX3XB) applies, 
a delay is requested by a majority of the representa-
tives of the domestic industry that would benefit from 
the action, or 
"(ii) if the Trade Representative determines that substan-
tial pn^ress is being made, or that a delay is necessary or 
desirable, to obtain United States r^hts or a satisfactory 
solution ¥dth respect to the acts, policies, or practices that 
are the subject of the action. 
"(B) The Trade Representative may not delay under subpara-
graph (A) the implementation of any action that is to be taken 
under section 301 with respect to any investigation to which 
section 304(aX3XA) applies. 
"(CJ) The TVade Representative may not delay under subpara-
graph (A) the implementation of any action that is to be taken 
under section 301 with respect to any investigation to which 
section 304(aX3)(B) applies by more than 90 days. 
"(b) 
ALTERNATIVE 
ACTIONS 
IN 
CERTAIN 
CASES 
OF 
EXPORT 
TARGETING.— 
"(1) If the Trade Representative makes an affirmative deter-
mination under section 304(aXlXA) involving export targeting 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1173 
by a foreign country and determines to take no action under 
section 301 with respect to such affirmation determination, the 
Trade Representative— 
"(A) shall establish an advisory panel to recommend 
measures which will promote the competitiveness of the 
domestic industry affected by the export targeting, 
"(B) on the basis of the report of such panel submitted 
under paragraph (2XB) and subject to the specific direction, 
if any, of the President, may take any achninistrative ac-
tions authorized under any other provision of law, and, if 
necessary, propose legislation to implement any other ac-
tions, that would restore or improve the international 
competitiveness of the domestic industry affected by the 
export targeting, and 
(C) shall, by no later than the date that is 30 days after Reports. 
the date on which the report of such panel is submitted 
under paragraph (2XB), submit a report to the Congress on 
the administrative actions taken, and l^islative proposals 
made, under subparagraph (B) with respect to the domestic 
industry affected by the export targeting. 
"(2XA) The advisory panels established under paragraph 
(1)(A) shall consist of individuals appointed by the Trade Rep-
resentative who— 
"(i) earn their livelihood in the private sector of the 
economy, including individuals who represent management 
and labor in the domestic industry affected by the export 
targeting that is the subject of the affirmative determina-
tion made under section 304(aXlXA), and 
"(ii) by education or experience, are qualified to serve on 
the advisory panel. 
"(B) By no later than the date that is 6 months after the date Reports. 
on which an advisory panel is established under paragraph 
dXA), the advisory panel shall submit to the Trade Representa-
tive and to the Congress a report on measures that the advisory 
panel recommends be taken by the United States to promote 
the competitiveness of the domestic industry affected by the 
export targeting that is the subject of the affirmative deter-
mination made under section 304(aXlXA). 
"SEC. 306. MONITORING OF FOREIGN COMPLIANCE. 
"(a) IN GENERAL.—^The Trade Representative shall monitor the 
implementation of each measure undertaken, or agreement of a 
kind described in clause (i), (ii), or (iii) of section 301(aX2XB) that is 
entered into under subsection (a) or (b) of section 301, by a foreign 
country— 
'(1) to enforce the rights of the United States under any trade 
agreement, or 
"(2) to eliminate any act, policy, or practice described in 
^
^ subsection (aXlXB) or (bXD of section 301. 
"(b) FURTHER ACTION.—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 shall be treated as a determination made under 
section 304(aXl). 
19 use 2416. 
102 STAT. 1174 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(c) CONSULTATIONS.—Before making any determination under 
subsection (b), the Trade Representative shall— 
"(1) consult with the petitioner, if any, involved in the initial 
investigation under this chapter and with representatives of the 
domestic industry concerned; and 
"(2) provide an opportunity for the presentation of views by 
interested persons. 
19 use 2417. 
"SEC. 307. MODIFICATION AND TERMINATION OF ACTIONS. 
"(a) IN GENERAL.— 
"(1) The Trade Representative may modify or terminate any 
action, subject to the specific direction, if any, of the President 
with respect to such action, that is being taken under section 
301 if— 
"(A) any of the conditions described in section 301(aX2) 
exist, 
"(B) the burden or restriction on United States commerce 
of the denial rights, or of the acts, policies, and practices, 
that are the subject of such action has increased or 
decreased, or 
"(C) such action is being taken under section 301(b) and is 
no longer appropriate. 
"(2) Before taking any action under paragraph (1) to modify or 
terminate any action taken under section 301, the Trade Rep-
resentative shall consult with the petitioner, if any, and with 
representatives of the domestic industry concerned, and shall 
provide opportunity for the presentation of views by other 
interested persons affected by the proposed modification or 
termination concerning the effects of the modification or termi-
nation and whether any modification or termination of the 
action is appropriate. 
Federal 
"(b) NOTICE; REPORT TO CONGRESS.—The Trade Representative 
Register, 
shall promptly publish in the Federal Register notice of, and report 
publication. 
jjj writing to the Congress with respect to, any modification or 
termination of any action taken under section 301 and the reasons 
therefor. 
"(c) REVIEW OF NECESSITY.— 
"(1) If— 
"(A) a particular action has been taken under section 301 
during any 4-year period, and 
"(B) neither the petitioner nor any representative of the 
domestic industry which benefits from such action has 
submitted to the Trade Representative during the last 60 
days of such 4-year period a written request for the continu-
ation of such action, 
such action shall terminate at the close of such 4-year period. 
MaU. 
"(2) The Trade Representative shall notify by mail the peti-
tioner and representatives of the domestic industry described in 
paragraph (IXB) of any termination of action by reason of 
paragraph (1) at least 60 days before the date of such termi-
nation. 
"(3) If a request is submitted to the Trade Representative 
under paragraph (1)(B) to continue taking a particular action 
under section 301, the Trade Representative shall conduct a 
review o
f
— 
"(A) the effectiveness in achieving the objectives of sec-
tion 301 of— 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1175 
"(i) such action, and 
"(ii) other actions that could be taken (including 
actions against other products or services), and 
"(B) the effects of such actions on the United States 
economy, including consumers. 
"SEC. 308. REQUEST FOR INFORMATION. 
"(a) IN GENERAL.—Upon receipt of written request therefor from 
any person, the Trade Representative shall make available to that 
person information (other than that to which confidentiality applies) 
concerning— 
"(1) the nature and extent of a specific trade policy or practice 
of a foreign country with respect to particular goods, services, 
investment, or intellectual property rights, to the extent that 
such information is available to the Trade Representative or 
other Federal agencies; 
: < 
"(2) United States rights under any trade agreement and the 
remedies which may be available under that agreement and 
under the laws of the United States; and 
"(3) past and present domestic and international proceedings 
or actions with respect to the policy or practice concerned. 
"(b) IF INFORMATION NOT AVAILABLE.—If information that is re-
quested by a person under subsection (a) is not available to the 
Trade Representative or other Federal agencies, the Trade Rep-
resentative shall, within 30 days after receipt of the request— 
"(1) request the information from the foreign government; or 
"(2) decline to request the information and inform the person 
in writing of the reasons for refusal. 
"(c) CERTAIN BUSINESS INFORMATION NOT MADE AVAILABLE.— 
"(1) Except as provided in paragraph (2), and notwithstanding 
any other provision of law (including section 552 of title 5, 
United States Code), no information requested and received by 
the Trade Representative in aid of any investigation under this 
chapter shall be made available to any person if— 
"(A) the person providing such information certifies 
that— 
"(i) such information is business confidential, 
"(ii) the disclosure of such information would endan-
ger trade secrets or profitability, and 
"(iii) such information is not generally available; 
"(B) the Trade Representative determines that such cer-
tification is well-founded; and 
"(C) to the extent required in regulations prescribed by 
the Trade Representative, the person providing sucn 
information provides an adequate nonconfidential sum-
mary of such information. 
"(2) The Trade Representative may— 
"(A) use such information, or make such information 
available (in his own discretion) to any employee of the 
Federal Government for use, in any investigation under 
this chapter, or 
"(B) may make such information available to any other 
person in a form which cannot be associated with, or other-
wise identify, the person providing the information. 
"SEC. 309. ADMINISTRATION. 
"The Trade Representative shall— 
Consumer 
protection. 
19 u s e 2418. 
Securities. 
Copyrights. 
Patents and 
trademarks. 
Classified 
information. 
19 use 2419. 
102 STAT. 1176 
PUBLIC LAW 100-418—AUG. 23, 1988 
Regulations. 
Reports. 
19 u s e 2411 
note. 
19 u s e 2420. 
"(1) issue regulations concerning the filing of petitions and 
the conduct of investigations and hearings under this sub-
chapter, 
"(2) keep the petitioner r^fularly informed of all determina-
tions and developments regarding the investigation conducted 
with respect to the petition under this chapter, including the 
reasons for any undue delays, and 
"(3) submit a report to the House of Representatives and the 
Senate semiannually describing— 
"(A) the petitions filed and the determinations made (and 
reasons therefor) under section 302, 
"(B) developments in, and the current status of, each 
investigation or proceeding under this chapter, 
"(CJ) the actions taken, or the reasons for no action, by the 
Trade Representative under section 301 with respect to 
investigations conducted under this chapter, and 
"(D) the commercial effects of actions taken under section 
301.". 
(b) Ck)NFORBiaNG AAIENDMENT.—^The table of contents of the Trade 
Act of 1974 is amended by striking out the items relating to chapter 
1 of title in and inserting in lieu thereof the following: 
"CHAFTEB 1—EINFORCEMENT OF UNITED STATES RIGHTS UNDER TRADE AGREEMENTS 
AND RESPONSE TO FOREIGN TRADE PRACTICES 
"Sec. 
'Sec. 
'Sec. 
"Sec. 
"Sec. 
"Sec. 
"Sec. 
301. Actions by United States Trade Representative. 
302. Initiation of investigations. 
303. Consultation upon initiation of investigation. 
304. Determinations by the Trade Representative. 
305. Implementation of actions. 
306. Monitoring of foreign compliance. 
307. Modification and termination of actions. 
"Sec. 308. Request for information. 
"Sec. 309. Administration.". 
(c) EFFECTIVE DATE.—^The amendments made by this section shall 
apply to— 
(1) petitions filed, and investigations initiated, under section 
302 of the Trade Act of 1974 on or after the date of the 
enactment of this Act; and 
(2) petitions filed, and investigations initiated, before the date 
of enactment of this Act, if by that date no decision had been 
made under section 304 r^arding the petition or investigation. 
SEC. 1302. IDENTIFICATION OF TRADE LIBERALIZATION PRIORITIES. 
(a) IN GENERAL.—Chapter 1 of title HI of the Trade Act of 1974, as 
amended by section 1301, is further amended by adding at the end 
thereof the following new section: 
"SEC. 310. IDENTIFICATION OF TRADE LIBERALIZATION PRIORITIES. 
"(a) I D E N T I F I C A T I O N . — 
"(1) By no later than the date that is 30 days after the date in 
calendar year 1989, and also the date in calendar year 1990, on 
which the report required under section 181(b) is submitted to 
the appropriate Congressional committees, the Trade Rep-
resentative shall identify United States trade liberalization 
priorities, including— 
"(A) priority practices, including major barriers and 
trade distorting practices, the elimination of which are 
likely to have the most significant potential to increase 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1177 
United States exports, either directly or through the 
establishment of a beneficial precedent; 
"(B) priority foreign countries that, on the basis of such 
report, satisfy the criteria in paragraph (2); 
(C) estimate the total amount by which United States 
exports of goods and services to each foreign country identi-
fied under subparagraph (B) would have increased during 
the preceding calendar year if the priority practices of such 
country identified under subparagraph (A) did not exist; 
and 
"(D) submit to the Committee on Finance of the Senate, 
the Committee on Ways and Means of the House of Rep-
resentatives, and publish in the Federal Register, a report 
which lists— 
"(i) the priority foreign countries identified under 
subparagraph (B), 
"(ii) the priority practices identified under subpara-
graph (A) with respect to each of such priority foreign 
countries, and 
"(iii) the amount estimated under subparagraph (C) 
with respect to each of such priority foreign countries. 
"(2) In identifying priority foreign countries under paragraph 
(1)(B), the Trade Representative shall take into account— 
"(A) the number and pervasiveness of the acts, policies, 
and practices described in section 181(aXlXA), and 
"(B) the level of United States exports of goods and 
services that would be reasonably expected from full im-
plementation of existing trade agreements to which that 
foreign country is a party, based on the international 
competitive position and export potential of such products 
and services. 
"(3) In identif5dng priority practices under paragraph (IXA), 
the Trade Representative shall take into account— 
"(A) the international competitive position and export 
potential of United States products and services, 
"(B) circumstances in which the sale of a small quantity 
of a product or service may be more significant than ite 
value, and 
"(C) the measurable medium-term and long-term implica-
tions of government procurement commitments to United 
States exporters. 
"(b) INITIATION OF INVESTIGATIONS.—By no later than the date 
that is 21 days after the date on which a report is submitted to the 
appropriate Congressional committees under subsection (aXlXD), the 
Trade Representative shall initiate under section 302(bXl) investiga-
tions under this chapter with respect to all of those priority prac-
tices identified in such report by reason of subsection (aXlXD) for 
each of the priority foreign countries. The Trade Representative 
may initiate investigations under section 302(bXl) with respect to all 
other priority practices identified under subsection (aXlXA). 
"(c) AGREEMENTS FOR THE EUMINATION OF BARRIERS.— 
"(1) In the consultations with a priority foreign country 
identified under subsection (aXD 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 
Representative shall seek to negotiate an agreement which 
provides for— 
Reports. 
Federal 
Register, 
publication. 
102 STAT. 1178 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(A) the elimination of, or compensation for, the priority 
practices identified under subsection (aXlXA) by no later 
than the close of the 3-year period beginning on the date on 
which such investigation is initiated, and 
"(B) the reduction of such practices over a 3-year period 
with the expectation that United States exports to the 
foreign country will, as a result, increase incrementally 
during each year within such 3-year period. 
"(2) Any investigation initiated under this chapter by reason 
of subsection (b) shall be suspended if an agreement described in 
subparagraphs (A) and (B) of paragraph (1) is entered into with 
the foreign country before the date on which any action under 
section 301 with respect to such investigation may be required 
under section 305(a) to be implemented. 
"(3) If an agreement described in paragraph (1) is entered into 
with a foreign country before the date on which any action 
under section 301 with respect to such investigation may be 
required under section 305(a) to be implemented and the Trade 
Representative determines that the foreign country is not in 
compliance with such agreement, the Trade Representative 
shall continue the investigation that was suspended by reason 
of such agreement as though such investigation had not been 
suspended. 
"(d) ANNUAL REPORTS.— 
"(1) On the date on which the report the Trade Representa-
tive is required to submit imder subsection (aXlXD) in calendar 
year 1990, and on the anniversary of such date in the succeed-
ing calendar years, the Trade Representative shall submit a 
report which includes— 
"(A) revised estimates of the total amount determined 
under subsection (aXlXC) for each priority foreign country 
that has been identified under subsection (aXl)(B), 
"(B) evidence that demonstrates, in the form of increased 
United States exports to each of such priority foreign coun-
tries during the previous calendar year— 
"(i) in the case of a priority foreign country that has 
entered into an agreement described in subsection 
(cXD, substantial progress during each year within the 
3-year period described in subsection (cXlXA) toward 
the goal of eliminating the priority practices identified 
under subsection (aXlXA) by the close of such 3-year 
period, and 
"(ii) in the case of a country which has not entered 
into (or has not complied with) an agreement described 
in subsection (cXD, the elimination of such practices, 
and 
"(C) to the extent that the evidence described in subpara-
graph (B) cannot be provided, any actions that have been 
taken by the Trade Representative under section 301 with 
respect to such priority practices of each of such foreign 
countries. 
"(2) The Trade Representative may exclude from the require-
ments of parsigraph (1) in any calendar year beginning after 
1993 any foreign country that has been identified under subsec-
tion (aXlXA) if the evidence submitted under paragraph (IXB) in 
the 2 previous reports demonstrated that all the priority prac-
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1179 
tices identified under subsection (aXlXA) with respect to such 
foreign country have been eliminated.", 
(b) CoNPORaoNG AMENDMENT.—The table of contents for the 
Trade Act of 1974 is amended by inserting after the item relating to 
section 309 the following new item: 
"Sec. 310. Identification of trade liberalization priorities.". 
SEC. 1303. IDENTIFICATION OF COUNTRIES THAT DENY ADEQUATE AND 
Ck)pyrights. 
EFFECTIVE PROTECTION 
OF INTELLECTUAL 
PROPERTY 
Patents and 
RIGHTS. 
trademarks. 
(a) FINDINGS AND PURPOSE.— 
19 use 2242 
(1) The Congress finds that— 
note. 
(A) international protection of intellectual property 
rights is vital to the international competitiveness of 
United States persons that rely on protection of intellectual 
property rights; and 
(B) the absence of adequate and effective protection of 
United States intellectual property rights, and the denial of 
fair and equitable market access, seriously impede the 
abihty of the United States persons that rely on protection 
of intellectual property rights to export and operate over-
seas, thereby harming the economic interests of the United 
States. 
(2) The purpose of this section is to provide for the develop-
ment of an overall strat^y to ensure adequate and effective 
protection of intellectual property rights and fair and equitable 
market access for United States persons that rely on protection 
of intellectual property rights. 
(b) IN GENERAL.—Chapter 8 of title I of the Trade Act of 1974 is 
amended by adding at the end thereof the following new section: 
"SEC. 182. IDENTIFICATION 
OF COUNTRIES THAT DENY ADEQUATE 
19 USC 2242. 
PROTECTION, OR MARKET ACCESS, FOR INTELLECTUAL 
PROPERTY RIGHTS. 
"(a) IN GENERAL.—By no later than the date that is 30 days after 
the date on which the annual report is submitted to Congressional 
committees under section 181(b), the United States Trade Represent-
ative (hereafter in this section referred to as the 'Trade Representa-
tive') shall identify— 
"(1) those foreign countries that— 
"(A) deny adequate and effective protection of intellec-
tual property rights, or 
"(B) deny fair and equitable market access to United 
States persons that rely upon intellectual property protec-
tion, and 
"(2) those foreign countries identified under paragraph (1) 
that are determined by the Trade Representative to be priority 
foreign countries. 
"(b) SPECIAL RULES FOR IDENTIFICATIONS.— 
"(1) In identifying priority foreign countries under subsection 
(aX2), the Trade Representative shall only identify those foreign 
countries— 
"(A) that have the most onerous or egr^ous acts, poli-
cies, or practices that— 
"(i) deny adequate and effective intellectual property 
rights, or 
102 STAT. 1180 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(ii) deny fair and equitable market access to United 
States persons that rely upon intellectual property 
protection, 
"(B) whose acts, policies, or practices described in 
subparagraph (A) have the greatest adverse impact (actual 
or potential) on the relevant United States products, and 
'\C) that are not— 
"(i) entering into good faith negotiations, or 
"(ii) making significant progress in bilateral or multi-
lateral negotiations, 
to provide adequate and effective protection of intellectual 
property rights. 
"(2) In identifying priority foreign countries under subsection 
(aX2), the Trade Representative shall— 
"(A) consult with the Register of Copyrights, the Commis-
sioner of Patents and Trademarks, other appropriate offi-
cers of the Federal Government, and 
"(B) take into account information from such sources as 
may be available to the Trade Representative and such 
information as may be submitted to the Trade Representa-
tive by interested persons, including information contained 
in reports submitted under section 181(b) and petitions 
submitted under section 302. 
"(3) The Trade Representative may identify a foreign country 
under subsection (aXlXB) only if the Trade Representative finds 
that there is a factual basis for the denial of fair and equitable 
market access as a result of the violation of international law or 
agreement, or the existence of barriers, referred to in subsection 
(3X3). 
"(c) REVOCATIONS AND ADDITIONAL IDENTIFICATIONS.— 
"(1) The Trade Representative may at any time— 
"(A) revoke the identification of any foreign country as a 
priority foreign country under this section, or 
"(B) identify any foreign country as a priority foreign 
country under this section, 
if information available to the Trade Representative indicates 
that such action is appropriate. 
"(2) The Trade Representative shall include in the semi-
annual report submitted to the Congress under section 309(3) a 
detailed explanation of the reasons for the revocation under 
paragraph (1) of the identification of any foreign country as a 
priority foreign country under this section. 
"(d) DEFINITIONS.—For purposes of this section— 
"(1) The term 'persons that rely upon intellectual property 
protection' means persons involved in— 
"(A) the creation, production or licensing of works of 
authorship (within the meaning of sections 102 and 103 of 
title 17, United States Code) that are copyrighted, or 
"(B) the manufacture of products that are patented or for 
which there are process patents. 
"(2) A foreign country denies adequate and effective protec-
tion of intellectual property rights if the foreign country denies 
,, 
adequate and effective means under the laws of the foreign 
country for persons who are not citizens or nationeds of such 
foreign country to secure, exercise, and enforce rights relating 
to patents, process patents, registered trademarks, copyrights 
and mask works. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1181 
"(3) A foreign country denies fair and equitable market access 
if the foreign country effectively denies access to a market for a 
product protected by a copjrright, patent, or process patent 
through the use of laws, procedures, practices, or r^ulations 
which— 
"(A) violate provisions of international law or inter-
national agreements to which both the United States and 
the foreign country are parties, or 
"(B) constitute discriminatory nontariff trade barriers. 
"(e) PuBUCATiON.—The Trade Representative shall publish in the 
Federal R^^ter a list of foreign countries identified under subsec-
tion (a) and shall make such revisions to the list as may be required 
lyjr reason of action under subsection (c).". 
(c) CONFORBfONG AMENDMENTS.— 
(1) The heading for chapter 8 of title I of the Trade Act of 1974 
is amended to read as follows: 
Federal 
Register, 
publication. 
"CHAPTER 8—IDENTIFICATION OF MARKET BARRIERS 
AND CERTAIN UNFAIR TRADE ACTIONS". 
(2) The table of contents for the Trade Act of 1974 is 
amended— 
(A) by striking out the item relating to chapter 8 of title I 
and inserting in lieu thereof the following: 
"CHAPTBH 8—IDENTIFICATION OF MARKET BARRIERS AND CERTAIN UNFAIR TRADE 
PRACTICES", 
and 
(B) by inserting after the item relating to section 181 the 
following new item: 
"Sec 182. Identification of countries that deny adequate protection, or market 
access, for intellectual property rigfate.". 
SEC 1304. AMENDMENTS TO THE NATIONAL TRADE ESTIMATES. 
(a) IN GENERAL.—Section 181 of the Trade Act of 1974 (19 U.S.C. 
2241) is amended— 
(1) by striking out "Not later than the date on which the 
initial report is required under subsection (bXD/' in subsection 
(aXD and inserting in lieu thereof "For calendar year 1988, and 
for each succeeding calendar year,", 
(2) by inserting of each foreign country" after "or practices" 
in subsection (aXlXA), 
(3) by strildng out "and" at the end of subsection (aXlXAXii), 
(4) by striking out the period at the end of subsection (aXl)(B) 
and inserting in lieu thereof "; and", 
(5) by addmg at the end of subsection (aXl) the following new 
subparagraph: 
"(C) make an estimate, if feasible, of— 
"(i) the value of additional goods and services of the 
United States, and 
"(ii) the value of additional foreign direct investment 
by United States persons, 
that would have been exported to, or invested in, each 
foreign country during such calendar year if each of such 
acts, policies, and prsictices of such country did not exist.", 
(6) by striking out and" at the end of subsection (aX2XC), 
102 STAT. 1182 
PUBLIC LAW 100-418—AUG. 23, 1988 
(7) by striking out the period at the end of subsection (a)(2)(D) 
and inserting in lieu thereof "; and", 
(8) by adding at the end of subsection (a)(2) the following new 
subparagraph: 
"(E) the actual increase in— 
"(i) the value of goods and services of the United 
States exported to, and 
"(ii) the value of foreign direct investment made in, 
• ^ 
the foreign country during the calendar year for which the 
estimate under paragraph (1)(C) is made.", 
(9) by inserting "and with the assistance of the interagency 
advisory committee established under section 141(d)(2)," after 
"Trade Expansion Act of 1962," in subsection (a)(1), and 
(10) by striking out "ACTIONS CONCERNING" in the section 
heading and inserting in lieu thereof "ESTIMATES OF". 
(b) SUBMISSION OF REPORT.—Paragraph (1) of section 181(b) of the 
Trade Act of 1974 (19 U.S.C. 2241(b)(1)) is amended to read as follows: 
"(1) On or before April 30, 1989, and on or before March 31 of 
each succeeding calendar year, the Trade Representative shall 
submit a report on the analysis and estimates made under 
subsection (a) for the calendar year preceding such calendar 
year (which shall be known as the 'National Trade Estimate') to 
the President, the Committee on Finance of the Senate, and 
appropriate committees of the House of Representatives.". 
SEC. 1305. INVESTIGATION OF BARRIERS IN JAPAN TO CERTAIN UNITED 
STATES SERVICES. 
The United States Trade Representative shall, within 90 days 
after the date of enactment of this Act, initiate an investigation 
under section 302 of the Trade Act of 1974 regarding those acts, 
policies, and practices of the Government of Japan, and of entities 
owned, financed, or otherwise controlled by the Government of 
' 
Japan, that are barriers in Japan to the offering or performance by 
United States persons of architectural, engineering, construction, 
and consulting services in Japan. 
SEC. 1306. TRADE AND ECONOMIC RELATIONS WITH JAPAN. 
(a) FINDINGS.—The Congress finds that— 
(1) the United States is at a critical juncture in bilateral 
relations with Japan; 
(2) the balance of trade between the United States and Japan 
has deteriorated steadily from an already large United States 
deficit of $10,400,000,000 in 1980 to an unprecedented United 
States deficit of $57,700,000,000 in 1987, a magnitude that is 
simply untenable; 
(3) approximately 90 percent of the increase in total trade 
between the United States and Japan since 1980 has been in 
Japanese exports to the United States; 
(4) United States exports to Japan have not significantly 
beneHted from appreciation of the yen; 
(5) the United States deficit in the balance of trade in manu-
factured 
goods 
is 
growing: 
in 
1987 
Japan 
exported 
$82,500,000,000 of manufactured goods to the United States, 
while the United States exported $14,600,000,000 in manufac-
tured goods; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1183 
(6) Japan accounts for 49 percent of the worldwide deficit of 
the United States in the balance of trade in manufactured 
goods, calculated on a customs basis; 
(7) our trade and economic relations with Japan are complex 
and cannot be effectively resolved through narrow sector-by-
sector n^otiations; 
(8) a major problem between the United States and Japan is 
the absence of a political will in Japan to import; and 
(9) meaningful negotiations must take place at the highest 
level, at a special summit of political leaders from both 
countries. 
(b) SENSE OF THE CONGRESS.— 
(1) It is the sense of the Congress that the President should 
propose to the Japanese Prime Minister that a special summit 
be held between the leaders of the United States and Japan for 
the purpose of— 
(A) addressing trade and economic issues, and 
(B) establishing— 
(i) an agreement that provides objectives for improve-
ment in trade and economic relations, and 
(ii) targets for achieving these objectives. 
(2) The delegation of the United States to the summit meeting 
described in subsection (a) should include— 
(A) Members of Congress from both political parties, and 
> 
(B) appropriate officers of the executive branch of the 
United States Government. 
(3) The delegation of Japan to the summit meeting described 
in subsection (a) should include— 
(A) representatives of all political parties in Japan, and 
(B) appropriate officers of the Grovernment of Japan. 
SEC. 1307. SUPERCOMPUTER TRADE DISPUTE. 
(a) FINDINGS.—The Congress finds that— 
(1) United States manufacturers of supercomputers have 
encountered significant obstacles in selling supercomputers in 
Japan, particularly to government agencies and universities; 
(2) Japanese government procurement policies and pricing 
practices have denied United States manufacturers access to 
the Japanese supercomputer market; 
(3) it has been reported that officials of the Ministry of 
International Trade and Industry of Japan have told United 
States Government officials that Japanese government agencies 
and universities do not intend to purchase supercomputers from 
United States manufacturers, or take steps to improve access 
for United States manufacturers; 
(4) the United States Government in August 1987 signed an 
agreement with the Government of Japan establishing proce-
dures for the procurement of United States supercomputers by 
the Government of Japan; 
(5) concern remains as to implementation of the procurement 
agreement by the Government of Japan; 
(6) there have been all^ations that Japanese manufacturers 
of supercomputers have been offering supercomputers at dras-
tically discounted prices in the markets of the United States, 
Japan, and other countries; 
(7) deep price discounting raises the concern that Japan's 
large-scale 
vertically 
int^rated 
manufacturers 
of 
102 STAT. 1184 
PUBLIC LAW 100-418—AUG. 23, 1988 
supercomputers have targeted the supercomputer industry with 
the objective of eventual domination of the global computer 
market; and 
(8) the supercomputer industry plays a central role in the 
technological competitiveness and national security of the 
United States. 
(b) SENSE OP CONGRESS.—It is the sense of the Congress that the 
United States Trade Representative and other appropriate officials 
of the United States Government should— 
(1) give the highest priority to concluding and enforcing agree-
ments with the Government of Japan which achieve improved 
market 
access 
for 
United 
States 
manufacturers 
of 
supercomputers and end any predatory pricing activities of 
Japanese companies in the United States, Japan, and other 
countries; and 
(2) continue to monitor the efforts of United States manufac-
turers of supercomputers to gain access to the Japanese market, 
recognizing that the Government of Japan may continue to 
manipulate the government procurement process to maintain 
the market dominance of Japanese manufacturers. 
PART 2—IMPROVEMENT IN THE ENFORCEMENT 
OF THE ANTIDUMPING AND COUNTERVAILING 
DUTY LAWS 
SEC. 1311. REFERENCE TO TITLE VII OF THE TARIFF ACT OF 1930. 
Unless otherwise provided, whenever in this part an amendment 
or repeal is expressed in terms of an amendment to, or repeal of, a 
subtitle, section, subsection, or other provision, the reference shall 
be considered to be made to a subtitle, section, subsection, or other 
provision of title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.). 
SEC. 1312. ACTIONABLE DOMESTIC SUBSIDIES. 
Paragraph (5) of section 771 (19 U.S.C. 1677(5)) is amended to read 
as follows: 
"(5) SUBSIDY.— 
"(A) IN GENERAL.—The term 'subsidy' has the same 
meaning as the term 'bounty or grant' as that term is used 
in section 303, and includes, but is not limited to, the 
following: 
"(i) Any export subsidy described in Annex A to the 
Agreement (relating to illustrative list of export sub-
sidies). 
"(ii) The following domestic subsidies, if provided or 
required by government action to a specific enterprise 
or industry, or group of enterprises or industries, 
whether publicly or privately owned and whether paid 
or bestowed directly or indirectly on the manufacture, 
production, or export of any class or kind of 
merchandise: 
"(I) The provision of capital, loans, or loan 
guarantees on terms inconsistent with commercial 
considerations. 
"(II) The provision of goods or services at pref-
erential rates. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1185 
"(IID The grant of funds or forgiveness of debt to 
cover operating losses sustained by a specific 
industry. 
"QV) The assumption of any costs or expenses of 
manufacture, production, or cQstribution. 
"(B) SPECIAL RULE.—^In applying subparagraph (A), the 
administering authority, in each investigation, shall deter-
mine whether the bounty, grant, or subsidy in law or in fact 
is provided to a specific enterprise or industry, or group of 
enterprises or industries. Nominal general availability, 
under the terms of the law, r^ulation, program, or rule 
establishing a bounty, grant, or subsidy, of the benefits 
thereunder is not a basis for determining that the bounty, 
grant, or subsidy is not, or has not been, in fact provided to 
a specific enterprise or industry, or group thereof.". 
SEC. 1313. CALCULATION OF SUBSIDIES ON CERTAIN PROCESSED AGRI-
CULTURAL PRODUCTS. 
(a) IN GENERAL.—Title VII of the Tariff Act of 1930 is amended by 
inserting after section 771A (19 U.S.C. 1677-1) the following new 
section: 
"SEC. 771B. In the case of an agricultural product processed from 19 USC 1677-2. 
a raw agricultural product in which (1) the demand for the prior 
stage product is substantially dependent on the demand for the 
latter stage product, and (2) the processing operation adds only 
limited value to the raw commodity, subsidies found to be provided 
to either producers or processors of the product shall be deemed to 
be provided with respect to the manufacture, production, or expor-
tation of the processed product.". 
(b) CoNFORiiaNG AMENDSCENT.—^The table of contents for title VII 
of the Tariff Act of 1930 is amended by inserting after the item 
relating to section 771A the following: 
"Sec. 771B. Calculation of subsidies on certain processed agricultural products.". 
SEC. 1314. REVOCATION OF STATUS AS A COUNTRY UNDER THE 
AGREEMENT. 
Section 701 (19 U.S.C. 1671) is amended— 
(1) by redesignating subsection (c) as subsection (d); and 
(2) by inserting after subsection (b) the following new 
subsection: 
"(c) REVOCATION OP STATUS AS A COUNTRY UNDER THE AGREE-
MENT.—^The United States Trade Representative may revoke the 
status of a foreign country as a country under the Agreement for 
purposes of this subtitle if such foreign country— 
"(1) announces that such foreign country does not intend, or is 
not d^le, to honor the obligations it has assumed with respect to 
the United States or the Agreement for purposes of this subtitle, 
or 
"(2) does not in fact honor such obligations.". 
SEC. 1315. TREATMENT OF INTERNATIONAL CONSORTIA. 
Section 701 (19 U.S.C. 1671) (as amended by section 1314) is 
further amended— 
(1) by redesignating subsection (d) as subsection (e); and 
(2) by inserting after subsection (c) the following new 
subsection: 
102 STAT. 1186 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(d) TREATMENT OF INTERNATIONAL CJONSORTIA.—For purposes of 
this subtitle, if the members (or other participating entities) of an 
international consortium that is engaged in the production of a class 
or kind of merchandise subject to a countervailing duty investiga-
tion receive subsidies from their respective home countries to assist, 
permit, or otherwise enable their participation in that consortium 
through production or manufacturing operations in their respective 
home countries, then the administering authority shall cumulate all 
such subsidies, as well as subsidies provided directly to the inter-
national consortium, in determining any countervailing duty upon 
such merchandise.". 
SEC. 1316. DUMPING BY NONMARKET ECONOMY COUNTRIES. 
(a) IN GENERAL.—Subsection (c) of section 773 (19 U.S.C. 1677b) is 
amended to read £is follows: 
"(c) NONMARKET ECONOMY COUNTRIES.— 
"(1) IN GENERAL.—If— 
"(A) the merchandise under investigation is exported 
from a nonmarket economy country, and 
"(B) the administering authority finds that available 
information does not permit the foreign market value of the 
merchandise to be determined under subsection (a), 
the administering authority shall determine the foreign market 
value of the 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, as 
required by subsection (e). Except as provided in paragraph (2), 
the valuation of the factors of production shall be based on the 
best available information regarding 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 determining 
the foreign market value of merchandise under paragraph (1), 
the administering authority shall determine the foreign market 
value on the basis of the price at which merchandise that is— 
"(A) comparable to the merchandise under investigation, 
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 countries, including the United States. 
"(3) FACTORS OF PRODUCTION.—For purposes 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 consumed, and 
"(D) representative capital cost, including depreciation. 
"(4) VALUATION OF FACTORS OF PRODUCTION.- -The administer-
ing authority, in valuing factors of production under paragraph 
(1), shall utilize, 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 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1187 
"CB) significant producers of comparable merchandise.". 
(b) NoNMARKET EcoNOicY C
O
U
N
T
R
Y DEFINED.—Section 771 (19 
U.S.C. 1677) is amended by adding at the end thereof the following 
new paragraph: 
"(18) NONMARKET ECONOMY COUNTRY.— 
"(A) IN GENERAL.—^The term 'nonmarket economy coun-
try* means any foreign country that the administering 
authority determines does not operate on market prin-
ciples of cost or pricing structures, so that sales of merchan-
dise in such country do not reflect the fair value of the 
merchandise. 
"(B) FACTORS TO BE CONSTOERED.—In making determina-
tions under subparagraph (A) the administering authority 
shall take into account— 
"(i) the extent to which the currency of the foreign 
country is convertible into the currency of other 
countries; 
"(ii) the extent to which wage rates in the foreign 
country are determined by free bargaining between 
labor and management, 
"(iii) the extent to which joint ventures or other 
investments by firms of other foreign countries are 
permitted in the foreign country, 
"(iv) the extent of government ownership or control 
of the means of production, 
"(v) the extent of government control over the 
allocation of resources and over the price and output 
decisions of enterprises, and 
"(vi) such other factors as the administering author-
ity considers appropriate. 
"(C) DETERMINATION IN EFFECT.— 
"(i) Any determination that a foreign country is a 
nonmarket economy country shall remain in effect 
until revoked by the administering authority. 
"(ii) The administering authority may make a deter-
mination under subparagraph (A) with respect to any 
foreign country at any time. 
"CD) DETERMINATIONS NOT IN ISSUE.—Notwithstanding 
any other provision of law, any determination made by the 
administering authority under subparagraph (A) shall not 
be subject to judicial review in any investigation conducted 
under subtitle B. 
"(E) COLLECTION OF INFORAIATION.—Upon request by the 
administering authority, the Commissioner of Customs 
( 
shall provide the administering authority a copy of all 
public and proprietary information submitted to, or 
obtained by, the Commissioner of Customs that the 
administerii^ authority considers relevant to proceedings 
involving merchandise from nonmarket economy countries. 
The administering authority shall protect proprietary Classified 
information obtained under this section from public disclo- information. 
sure in accordance with section 777.". 
(c) SUSPENSION OF NONMARKET ECONOMY CJOUNTRY INVESTIGA-
TIONS.—Section 734 (19 U.S.C. 1673c) is amended by adding at the 
end thereof the following new subsection: 
"G) SPECIAL RULE FOR NONMARKET ECONOMY COUNTRIES.— 
102 STAT. 1188 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(1) IN GENERAL.—The administering authority may suspend 
an investigation under this subtitle upon acceptance of an 
agreement with a nonmarket economy country to restrict the 
volume of imports into the United States of the merchandise 
under investigation only if the administering authority deter-
mines that— 
"(A) such agreement satisfies the requirements of subsec-
tion (d), and 
"(B) will prevent the suppression or undercutting of price 
levels of domestic products by imports of the merchandise 
under investigation. 
"(2) FAILURE OF AGREEMENTS.—If the administering authority 
determines that an agreement accepted under this subsection 
no longer prevents the suppression or undercutting of domestic 
prices of merchandise manufactured in the United States, the 
provisions of subsection (i) shall apply.". 
19 use 1677k. 
SEC. 1317. THIRD-COUNTRY DUMPING. 
(a) DEFINITIONS.—For purposes of this section: 
(1) The term "Agreement" means the Agreement on Im-
plementation of Article VI of the General Agreement on Tariffs 
and Trade (relating to antidumping measures). 
(2) The term "Agreement country" means a foreign country 
that has accepted the Agreement. 
(3) The term "Trade Representative" means the United States 
Trade Representative. 
(b) PETITION BY DOMESTIC INDUSTRY.— 
(1) A domestic industry that produces a product that is like or 
directly competitive with merchandise produced by a foreign 
country (whether or not an Agreement country) may, if it has 
reason to believe that— 
(A) such merchandise is being dumped in an Agreement 
country; and 
(B) such domestic industry is being materially injured, or 
threatened with material injury, by reason of such 
dumping; 
submit a petition to the Trade Representative that alleges the 
elements referred to in subparagraphs (A) and (B) and requests 
the Trade Representative to take action under subsection (c) on 
behalf of the domestic industry. 
(2) A petition submitted under paragraph (1) shall contain 
such detailed information as the Trade Representative may 
require in support of the allegations in the petition. 
(c) APPLICATION FOR ANTIDUMPING ACTION ON BEHALF OF THE 
DOMESTIC INDUSTRY.— 
(1) If the Trade Representative, on the basis of the informa-
tion contained in a petition submitted under paragraph (1), 
determines that there is a reasonable basis for the allegations in 
the petition, the Trade Representative shall submit to the 
appropriate authority of the Agreement country where the 
alleged dumping is occurring an application pursuant to Article 
12 of the Agreement which requests that appropriate antidump-
ing action under the law of that country be taken, on behalf of 
the United States, with respect to imports into that country of 
the merchandise concerned. 
(2) At the request of the Trade Representative, the appro-
priate officers of the Department of Commerce and the United 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1189 
States International Trade Ck>mmission shall assist the Trade 
Representative in preparing the application under paragraph 
(1). 
(d) 
CONSULTATION AFTER SUBMISSION OP APPUCATION.—After 
submitting an application under subsection (cXD* the Trade Rep-
resentative shall seek consultations with the appropriate authority 
of the Agreement country r^arding the request for antidumping 
action. 
(e) ACTION UPON REFUSAL OF AGREEMENT COUNTRY TO ACT.—If the 
appropriate authority of an Agreement country refuses to under-
take antidumping measures in response to a request made therefor 
by the Trade Representative under subsection (c), the Trade Rep-
resentative shall promptly consult with the domestic industry on 
whether action under any other law of the United States is 
appropriate. 
SEC. 1318. INPUT DUMPING BY RELATED PARTIES. 
Subsection (e) of section 773 (19 U.S.C. 1677b(e)) is amended— 
(1) by striking out "(3)" each place it appears in paragraph (2) 
and inserting "(4)", 
(2) by redesignating paragraph (3) as paragraph (4), 
(3) by inserting after paragraph (2) the following new para-
graph: 
"(3) SPECIAL RULE.—^If, r^arding any transaction between 
persons specified in any one of the subparagraphs of paragraph 
(4) involving the production by one of such persons of a major 
input to the merchandise under consideration, the administer-
ing authority has reasonable grounds to believe or suspect that 
an amount represented as the value of such input is less than 
the costs of production of such input, then the administering 
authority may determine the value of the major input on the 
best evidence available r^arding such costs of production, if 
such costs are greater than the amount that would be deter-
mined for such input under paragraph (2).", and 
(4) by striking out "paragraph (2)" in paragraph (4) (as 
redesignated by paragraph (2)) and inserting "paragraphs (2) 
and (3)". 
SEC 1319. FICTITIOUS MARKETS. 
Subsection (a) of section 773 of the Tariff Act of 1930 (19 U.S.C. 
1677b(a)) is amended by adding at the end thereof the following new 
paragraph: 
"(5) FICTITIOUS MARKETS.—^The occurrence of different move-
ments in the prices at which different forms of any merchandise 
subject to an antidumping duty order issued under this title are 
sold (or, in the absence of sales, offered for sale) after the 
issuance of such order in the principal markets of the foreign 
country from which the merchandise is exported may be consid-
ered by the administering authority as evidence of the establish-
ment of a fictitious market for the merchandise if the move-
ment in such prices appears to reduce the amount by which the 
foreign market value of the merchandise exceeds the United 
Stat^ price of the merchandise.". 
SEC. 1320. DOWNSTREAM PRODUCT MONITORING. 
(a) IN GENERAL.—Subtitle D (19 U.S.C. 1677 et seq.) is amended by 
adding at the end thereof the following: 
102 STAT. 1190 
PUBLIC LAW 100-418—AUG. 23, 1988 
19 u s e 16771. 
Federal 
Register, 
publication. 
•SEC. 780. DOWNSTREAM PRODUCT MONITORING. 
"(a) PETITION REQUESTING MONITORING.— 
"(1) IN GENERAL.—A domestic producer of an article that is 
like a component part or a downstream product may petition 
the administering authority to designate a downstream product 
for monitoring under subsection (b). The petition shall specify— 
"(A) the downstream product, 
"(B) the component product incorporated into such down-
stream product, and 
"(C) the reasons for suspecting that the imposition of 
antidumping or countervailing duties has resulted in a 
diversion of exports of the component part into increased 
production and exportation to the United States of such 
downstream product. 
"(2) DETERMINATION REGARDING PETITION.—Within 14 days 
after receiving a petition submitted under paragraph (1), the 
administering authority shall determine— 
"(A) whether there is a reeisonable likelihood that im-
ports into the United States of the downstream product will 
increase as an indirect result of any diversion with respect 
to the component part, and 
"(B) whether— 
"(i) the component part is already subject to monitor-
ing to aid in the enforcement of a bilateral arrange-
ment (within the meaning of section 804 of the Trade 
and Tariff Act of 1984), 
"(ii) merchandise related to the component part and 
manufactured in the same foreign country in which the 
component part is manufactured has been the subject 
of a significant number of investigations suspended 
under section 704 or 734 or countervailing or antidump-
ing duty orders issued under this title or section 303, or 
"(iii) merchandise manufactured or exported by the 
manufacturer or exporter of the component part that is 
similar in description and use to the component part 
has been the subject of at least 2 investigations sus-
pended under section 704 or 734 or countervailing or 
antidumping duty orders issued under this title or 
section 303. 
"(3) FACTORS TO TAKE INTO ACCOUNT.—In making a determina-
tion under paragraph (2XA), the administering authority may, if 
appropriate, take into account such factors as— 
"(A) the value of the component part in relation to the 
value of the downstream product, 
"(B) the extent to which the component part has been 
substantially transformed as a result of its incorporation 
into the downstream product, and 
"(C) the relationship between the producers of component 
parts and producers of downstream products. 
"(4) PuBUCATiON OF DETERMINATION.—The administering 
authority shall publish in the Federal Register notice of each 
determination made under paragraph (2) and, if the determina-
tion made under paragraph (2XA) and a determination made 
under any subparagraph of paragraph (2XB) are affirmative, 
shall transmit a copy of such determinations and the petition to 
the Commission. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1191 
"(5) DETERMINATIONS NOT SUBJECT TO JUDICIAL REVIEW.—Not-
withstanding any other provision of law, any determination 
made by the administering authority under paragraph (2) shall 
not be subject to judicial review. 
"(b) MONITORING BY THE COMMISSION.— 
"(1) IN GENERAL.—If the determination made under subsec-
tion (aX2XA) and a determination made under any clause of 
subsection (aX2XB) with respect to a petition are affirmative, the 
Commission shall immediately commence monitoring of trade 
in the downstream product that is the subject of the determina-
tion made under subsection (aX2XA). If the Commission finds 
that imports of a downstream product being monitored in-
creased during any calendar quarter by 5 percent or more over 
the preceding quarter, the Commission shall analyze that in-
crease in the context of overall economic conditions in the 
product sector. 
"(2) REPORTS.—^The Commission shall make quarterly reports Public 
to the administering authority regarding the monitoring and information. 
analyses conducted under paragraph (1). The Commission shall 
make the reports available to the public. 
"(c) ACTION ON BASIS OF MONITORING REPORTS.—The administer-
ing authority shall review the information in the reports submitted 
by the C]k)mmission under subsection (bX2) and shall— 
"(1) consider the information in determining whether to initi-
ate an investigation under section 702(a), 732(a), or 303 regard-
ing any downstream product, and 
*(2) request the Commission to cease monitoring any down-
stream product if the information indicates that imports into 
the United States are not increasing and there is no reasonable 
likelihood of diversion with respect to component parts. 
"(d) DEFINITIONS.—For purposes of this section— 
"(1) The term 'component part' means any imported article 
that— 
"(A) during the 5-year period ending on the date on which 
the petition is filed under subsection (a), has been subject 
to— 
"(i) a countervailing or antidumping duty order 
issued under this title or section 303 that requires the 
deposit of estimated countervailing or antidumping 
duties imposed at a rate of at least 15 percent ad 
valorem, or 
"(ii) an agreement entered into under section 704, 
734, or 303 after a preliminary affirmative determina-
tion under section 703(b), 733(bXl), or 303 was made by 
the administering authority which included a deter-
mination that the estimated net subsidy was at least 15 
percent ad valorem or that the estimated average 
amount by which the foreign market value exceeded 
the United States price was at least 15 percent ad 
valorem, and 
"(B) because of its inherent characteristics, is routinely 
used as a major part, component, assembly, subassembly, or 
material in a downstream product. 
"(2) The term 'downstream product' means any manufactured 
article— 
"(A) which is imported into the United States, and 
"(B) into which is incorporated any component part.". 
102 STAT. 1192 
PUBLIC LAW 100-418—AUG. 23, 1988 
(b) CONFORMING AMENDMENT.—The table of contents for title VII 
of the Tariff Act of 1930 is amended by inserting after the item 
relating to section 779 the following: 
"Sec. 780. Downstream product monitoring.". 
SEC. 1321. PREVENTION OF CIRCUMVENTION OF ANTIDUMPING AND 
COUNTERVAILING DUTY ORDERS. 
(a) IN GENERAL.—Subtitle D (19 U.S.C. 1677 et seq.) (as amended 
by section 1320) is further amended by adding at the end thereof the 
following: 
19 u s e 1677J. 
"SEC. 781. PREVENTION OF CIRCUMVENTION OF ANTIDUMPING AND 
COUNTERVAILING DUTY ORDERS. 
"(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) an antidumping duty order issued under section 
736, 
"(ii) a finding issued under the Antidumping Act, 
1921, or 
"(iii) a countervailing duty order issued under section 
706 or section 303, 
"(B) such merchandise sold in the United States is com-
pleted or assembled in the United States from parts or 
components produced in the foreign country with respect to 
which such order or finding applies, and 
"(C) the difference between the value of such merchan-
dise sold in the United States and the value of the imported 
parts and components referred to in subparagraph (B) is 
small, 
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 subparagraph (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. 
"(2) FACTORS TO CONSIDER.—In determining whether to in-
clude parts or components in a countervailing or antidumping 
duty order or finding under paragraph (1), the administering 
authority shall take into account such factors as— 
"(A) the pattern of trade, 
"(B) whether the manufacturer or exporter of the parts or 
components is related to the person who assembles or 
completes the merchandise sold in the United States from 
the parts or components produced in the foreign country 
with respect to which the order or finding described in 
paragraph (1) applies, and 
"(C) whether imports into the United States of the parts 
or components produced in such foreign country have in-
creased after the issuance of such order or finding. 
"Ob) MERCHANDISE COMPLETED OR ASSEMBLED IN OTHER FOREIGN 
COUNTRIES.— 
"(1) IN GENERAL.—If— 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1193 
"(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 section 
736, 
"(ii) a finding issued under the Antidumping Act, 
1921, or 
"(iii) a countervailing duty order issued under section 
706 or section 303, 
"(B) before importation into the United States, such im-
ported merchandise is completed or assembled in another 
foreign country from merchandise which— 
"(i) is subject to such order or finding, or 
"(ii) is produced in the foreign country with respect 
to which such order or finding applies, 
"(C) the difference between the value of such imported 
merchandise and the value of the merchandise described in 
subparagraph (B) is small, and 
"(D) the administering authority determines that action 
is appropriate under this pars^aph to prevent evasion of 
such order or finding, 
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 findii^ at any time such order or finding is in effect. 
"(2) FACTORS TO CONSIDER.—In determining whether to in-
clude merchandise assembled or completed in a foreign country 
in a countervailing or antidumping duty order or finding under 
paragraph (1), the administering authority shall take into 
account such factors as— 
"(A) the pattern of trade, 
"(B) whether the manufacturer or exporter of the mer-
chandise described in paragraph (1)(B) is related to the 
person who uses the merchan<Use described in paragraph 
(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 (IXB) have increased 
after the issuance of such order or finding. 
*(c) MINOR ALTERATIONS OF MERCHANDISE.— 
"(1) IN GENERAL.—^The class or kind of merchandise subject 
to— 
"(A) an investigation under this title, 
"(B) an antidumping duty order issued under section 736, 
"(C) a finding issued under the Antidumping Act, 1921, or 
"(D) a countervailing duty order issued under section 706 
or section 303, 
shall include articles altered in form or appearance in minor 
respects (including raw agricultural products that have under-
gone minor processing), whether or not included in the same 
tariff classification. 
"(2) EXCEPTION.—Paragraph (1) shall not apply with respect to 
altered merchandise if the administering authority determines 
that it would be unnecessary to consider the altered merchan-
dise within the scope of the investigation, order, or finding. 
'(d) LATER-DEVELOPED MERCHANDISE.— 
102 STAT. 1194 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(1) IN GENERAL.—For purposes of determining whether mer-
chandise developed after an investigation is initiated under this 
title or section 303 (hereafter in this paragraph referred to £is 
the 'later-developed merchandise') is within the scope of an 
outstanding antidumping or countervailing duty order issued 
under this title or section 303 as a result of such investigation, 
the administering authority shall consider whether— 
"(A) the later-developed merchandise has the same gen-
eral physical characteristics as the merchandise with re-
spect to which the order was originally issued (hereafter in 
this paragraph referred to as the 'earlier product'), 
"(B) the expectations of the ultimate purchcisers of the 
later-developed merchandise are the same as for the earlier 
product, 
"(C) the ultimate use of the earlier product and the later-
developed merchandise are the same, 
"(D) the later-developed merchandise is sold through the 
same channels of trade as the earlier product, and 
"(E) the later-developed merchandise is advertised and 
displayed in a manner similar to the earlier product. 
The administering authority shall take into account any advice 
provided by the Commission under subsection (e) before making 
a determination under this subparagraph. 
"(2) EXCLUSION FROM ORDERS.—The administering authority 
may not exclude a later-developed merchandise from a counter-
vailing or antidumping duty order merely because the merchan-
dise— 
"(A) is classified under a tariff classification other than 
that identified in the petition or the 
administering 
authority's prior notices during the proceeding, or 
"(B) permits the purchaser to perform additional func-
tions, unless such additional functions constitute the pri-
mary use of the merchandise and the cost of the additional 
functions constitute more than a significant proportion of 
the total cost of production of the merchandise. 
"(e) COMMISSION ADVICE.— 
"(1) 
NOTIFICATION TO COMMISSION OF PROPOSED ACTION.— 
Before making a determination— 
"(A) under subsection (a) with respect to merchandise 
completed or assembled in the United States (other than 
minor completion or assembly), 
"(B) under subsection (b) with respect to merchandise 
completed or assembled in other foreign countries, or 
"(C) under subsection (d) with respect to any later-devel-
oped merchandise which incorporates a significant tech-
nological advance or significant alteration of an earlier 
product, 
with respect to an antidumping or countervailing duty order or 
finding as to which the Commission has made an affirmative 
injury determination, the administering authority shall notify 
the Commission of the proposed inclusion of such merchandise 
in such countervailing or antidumping order or finding. Not-
withstanding any other provision of law, a decision by the 
administering authority regarding whether any merchandise is 
within a category for which notice is required under this para-
graph is not subject to judicial review. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1195 
"(2) REQUEST FOR CONSULTATION.—After receiving notice 
under paragraph (1), the Commission may request consultations 
with the administering authority r^ardmg the inclusion. Upon 
the request of the Commission, the administering authority 
shall consult with the Commission and any such consultation 
shall be completed within 15 days after the date of the request. 
"(3) COMMISSION ADVICE.—If the Commission believes, after 
consultation under paragraph (2), that a significant injury issue 
is presented by the proposed inclusion, the Commission may 
provide written advice to the administering authority as to 
whether the inclusion would be inconsistent with the affirma-
tive determination of the Commission on which the order or 
finding is based. If the Commission decides to provide such 
written advice, it shall promptly notify the administering 
authority of its intention to do so, and must provide such advice 
within 60 days after the date of notification under paragraph 
(1). For purposes of formulating its advice with respect to 
merchandise completed or assembled in the United States from 
parts or components produced in a foreign country, the Commis-
sion shall consider whether the inclusion of such parts or 
components taken as a whole would be inconsistent with its 
prior affirmative determination.", 
(b) CONFORMING AMENDMENT.—The table of contents for title VII 
of the Tariff Act of 1930 is amended by inserting after the item 
relating to section 780 the following: 
"Sec. 781. Prevention of circumvention of antidumping and countervailing duty 
orders.". 
SEC. 1322. STEEL IMPORTS. 
Section 805 of the Trade and Tariff Act of 1984 (19 U.S.C. 2253, 
note) is amended by adding at the end thereof the following new 
subsection: 
"(dXD Any steel product that is manufactured in a country that is 
not party to a bilateral arrangement from steel which was melted 
and poured in a country that is party to a bilateral arrangement 
Giereafter in this subsection referred to as an 'arrangement coun-
try') may be treated for purposes of the quantitative restrictions and 
related terms under that arrangement as if it were a product of the 
arrangement country. 
"(2) The President may implement such procedures as may be 
necessary or appropriate to carry out the purpose of paragraph (1). 
"(3) The United States Trade Representative may, in a manner 
consistent with the purpose of any so-called 'third country equity 
provision' of an arrangement entered into under the President's 
Steel Policy, take such actions as he deems necessary with respect to 
steel imports of any other country or countries so as to ensure the 
effectiveness of any portion of such arrangement". 
SEC. 1323. SHORT LIFE CYCLE PRODUCTS. 
(a) ESTABLISHMENT OF PRODUCT CATEGORIES FOR SHORT LIFE CYCLE 
MERCHANDISE.—Subtitle B is amended by adding at the end thereof 
the following new section: 
"SEC. 739. ESTABLISHMENT OF PRODUCT CATEGORIES FOR SHORT LIFE 19 USC 1673h. 
CYCLE MERCHANDISE. 
"(a) ESTABLISHMENT OF PRODUCT CATEGORIES.— 
"(1) PETITIONS.— 
102 STAT. 1196 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(A) IN GENERAL.—An eligible domestic entity may file a 
petition with the Commission requesting that a product 
category be established with respect to short life cycle 
merchandise at any time after the merchandise becomes 
the 
subject 
of 
2 
or 
more 
affirmative 
dumping 
determinations. 
"(B) CONTENTS,—A petition filed under subparagraph (A) 
shall— 
"(i) identify the short life cycle merchandise that is 
the subject of the affirmative dumping determinations, 
"(ii) specify the short life cycle merchandise that the 
petitioner seeks to have included in the same product 
category as the merchandise that is subject to the 
affirmative dumping determinations, 
"(iii) specify any short life cycle merchandise the 
petitioner particularly seeks to have excluded from the 
product category, 
"(iv) provide reasons for the inclusions and exclu-
sions specified under clauses (ii) and (iii), and 
"(v) identify such merchandise in terms of the des-
ignations used in the Tariff Schedules of the United 
States. 
"(2) DETERMINATIONS ON SUFFICIENCY OF PETITION.—Upon 
receiving a petition under paragraph (1), the Commission 
shall— 
"(A) request the administering authority to confirm 
promptly the affirmative determinations on which the peti-
tion is based, and 
"(B) upon receipt of such confirmation, 
determine 
whether the merchandise covered by the confirmed affirma-
tive determinations is short life cycle merchandise and 
whether the petitioner is an eligible domestic entity. 
"(3) NOTICE; HEARINGS.—If the determinations under para-
graph (2)(B) are affirmative, the Commission shall— 
Federal 
"(A) publish notice in the Federal Register that the peti-
Register, 
tion h£is been received, and 
publication. 
"(g) provide Opportunity for the presentation of views 
regarding the establishment of the requested product cat-
egory, including a public hearing if requested by any 
interested person. 
"(4) DETERMINATIONS.— 
"(A) IN GENERAL.—By no later than the date that is 90 
days after the date on which a petition is filed under 
paragraph (1), the Commission shall determine the scope of 
the product category into which the short life cycle mer-
chandise that is the subject of the affirmative dumping 
determinations identified in such petition shall be classified 
for purposes of this section. 
"(B) MODIFICATIONS NOT REQUESTED BY PETITION.— 
"(i) IN GENERAL.—The Commission may, on its own 
initiative, make a determination modifying the scope of 
any product category established under subparagraph 
(A) at any time. 
"(ii) NOTICE AND HEARING.—Determinations may be 
made under clause (i) only after the Commission has— 
"(I) published in the Federal Register notice of 
the proposed modification, and 
^^m^mi 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1197 
i 
"(ID provided interested parties an opportunity 
for a hearing, and a period for the submission of 
written comments, on the classification of mer-
chandise into the product cat^ories to be affected 
by such determination. 
"(O BASIS OF DETERMINATIONS.—In making determina-
tions under subparagraph (A) or (B), the Commission shall 
ensure that each product category consists of similar short 
life cycle merchandise which is produced by similar proc-
esses under similar circumstances and has similar uses. 
*(b) DEFINITIONS.—^For purposes of this section— 
"(1) EuGiBLE D
O
M
E
S
T
I
C ENTITY.—^The term 'el^ble domestic 
entity' means a manufacturer or producer in the United States, 
or a certified union or rea^nized union or group of workers 
which is representative of an industry in the United States, that 
manufactures or produces short life cycle merchandise that is— 
"(A) like or directly competitive with other merchandise 
that is the subject of 2 or more affirmative dumping deter-
minations, or 
"(B) is similar enough to such other merchandise as to be 
considered for inclusion with such merchandise in a prod-
uct monitoring cat^ory established under this section. 
"(2) 
AFFQUMATIVE DUMPING DETERMINATION.—^The term 
'affirmative dumpii^ determination' means— 
"(A) any affirmative final determination made by the 
administering authority under section 735(a) during the 8-
year period preceding the filing of the petition under this 
section that results in the issuance of an antidumping duty 
order under section 736 which requires the deposit of esti-
mated antidumping duties at a rate of not less than 15 
percent ad valorem, or 
"(B) any affirmative preliminary determination that— 
"(i) is made by the administering authority under 
section 733(b) during the 8-year period preceding the 
filing of the petition under this section in the course of 
an investigation for which no final determination is 
made under section 735 by reason of a suspension of the 
investigation under section 734, and 
"(ii) includes a determination that the estimated 
^ 
average amount by which the foreign market value of 
the merchandise exceeds the United States price of the 
merchandise is not less than 15 percent ad valorem. 
"(3) SUBJECT OF AFFIRMATIVE DUMPING DETERMINATION.— 
"(A) IN GENERAL.—Short life cycle merchandise of a 
manufacturer shall be treated as being the subject of an 
affirmative dumping determination only if the administer-
ing authority— 
"(i) makes a separate determination of the amount 
by which the foreign market value of such merchandise 
of the manufacturer exceeds the United States price of 
such merchandise of the manufacturer, and 
"(ii) specifically identifies the manufacturer by name 
with such amount in the affirmative dumping deter-
mination or in an antidumping duty order issued as a 
result of the affirmative dumping determination. 
102 STAT. 1198 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(B) EXCLUSION.—Short life cycle merchandise of a manu-
facturer shall not be treated as being the subject of an 
affirmative dumping determination if— 
"(i) such merchandise of the manufacturer is part of 
a group of merchandise to which the administering 
authority assigns (in lieu of making separate deter-
minations described in subparagraph (AXiXD) an 
amount determined to be the amount by which the 
foreign market value of the merchandise in such group 
exceeds the United States price of the merchandise in 
such group, and 
"(ii) the merchandise and the manufacturer are not 
specified by name in the affirmative dumping deter-
mination or in any antidumping duty order issued as a 
result of such affirmative dumping determination. 
"(4) SHORT UFE CYCLE MERCHANDISE.—The term 'short life 
cycle merchandise' means any product that the Commission 
determines is likely to become outmoded within 4 years, by 
reason of technological advances, after the product is commer-
cially available. For purposes of this paragraph, the term 'out-
moded' refers to a kind of style that is no longer state-of-the-art. 
"(c) TRANSITIONAL RULES.— 
"(1) For purposes of this section and section 733(bXl) (B) and 
(C), all affirmative dumping determinations described in subsec-
tion (bX2XA) that were made after December 31, 1980, and 
before the date of enactment of the Omnibus Trade and 
Competitiveness Act of 1988, and all affirmative dumping deter-
minations described in subsection (bX2XB) that were made after 
December 31, 1984, and before the date of enactment of such 
Act, with respect to each category of short life cycle merchan-
dise of the same manufacturer shall be treated as one affirma-
tive dumping determination with respect to that category for 
that manufacturer which was made on the date on which the 
latest of such determinations was made. 
"(2) No affirmative dumping determination that— 
"(A) is described in subsection 0)X2XA) and was made 
before January 1,1981, or 
"(B) is described in subsection (bX2XB) and was made 
before January 1,1985, 
may be taken into account under this section or section 733(bXl) 
(B) and (C).". 
Ot)) EXPEDITED DUMPING INVESTIGATIONS.—Section 733 (19 U.S.C. 
19 use 1673b. 
1673) is amended as follows: 
(1) Paragraph (1) of subsection 0)X1) is amended to read as 
follows: 
"(1) PERIOD OP ANTIDUMPING DUTY INVESTIGATION.— 
"(A) IN GENERAL.—Except as provided in subparagraph 
(B), within 160 days after the date on which a petition is 
filed under section 732(b), or an investigation is commenced 
under section 732(a), but not before an affirmative deter-
mination by the Commission under subsection (a) of this 
section, the administering authority shall make a deter-
mination, based upon the best information available to it at 
the time of the determination, of whether there is a reason-
ir 
able basis to believe or suspect that the merchandise is 
being sold, or is likely to be sold, at less than fair value. If 
the determination of the administering authority under 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1199 
this subsection is affirmative, the determination shall in-
clude the estimated average amount by which the foreign 
market value exceeds the United States price. 
"(B) 
IF 
CERTAIN 
SHORT 
UFE 
CYCLE MERCHANDISE 
INVOLVED.—If a petition filed under section 732(b), or an 
investigation commenced under section 732(a), concerns 
short life cycle merchandise that is included in a product 
cat^ory established under section 739(a), subparagraph (A) 
shall be applied— 
"(i) by substituting '120 days' for '160 days* if manu-
facturers that are second offenders account for a 
significant proportion of the merchandise under inves-
tigation, and 
"(ii) by substituting '100 days' for '160 dajrs' if manu-
facturers that are multiple offenders account for a 
significant proportion of die merchandise under inves-
tigation. 
"(C) 
DEFINITIONS 
OF 
OFFENDERS.—For purposes 
of 
subparagraph (B)— 
"(i) The term 'second offender' means a manufac-
turer that is specified in 2 affirmative dumping deter-
minations (within the meaning of section 739) as the 
manufacturer of short life cycle merchandise that is— 
"(I) specified in both such determinations, and 
"(II) within the scope of the product category 
referred to in subparagraph (B). 
"(ii) The term 'multiple offender' means a manufac-
turer that is specified in 3 or more affirmative dumping 
determinations (within the meaning of section 739) as 
the manufacturer of short life cycle merchandise that 
is— 
"(I) specified in each of such determinations, and 
"(II) within the scope of the product category 
referred to in subparagraph (B).". 
(2) Paragraph (1) of subsection (c) is amended by inserting at 
the end thereof the following sentence: "No extension of a 
determination date may be made under this paragraph for any 
investigation in which a determination date provided for in 
subsection (bXl)(B) applies unless the petitioner submits written 
notice to the administering authority of its consent to the 
extension.". 
(3) Subsection (eXD is amended by adding at the end thereof 
the following flush sentence: 
"The administering authority shall be treated as having made 
an affirmative determination under subparagraph (A) in any 
investigation to which subsection (bXlXB) is applied.", 
(c) CONFORMING AMENDMENT.—^The table of contents for title VII 
of tJie Tariff Act of 1930 is amended by inserting after the item 
relating to section 739 the following: 
"Sec. 739. Establishment of product categories for short life cycle merchandise.". 
SEC. 1324. CRITICAL CIRCUMSTANCES. 
(a) COUNTERVAILING DUTY INVESTIGATIONS.— 
(1) Section 702 (19 U.S.C. 1671a) is amended by adding at the 
end thereof the following new subsection: 
"(e) INFORMATION REGARDING CRITICAL CIRCUMSTANCES.—If, at 
any time after the initiation of an investigation under this subtitle. 
102 STAT. 1200 
PUBLIC LAW 100-418—AUG. 23, 1988 
the administering authority finds a reasonable basis to suspect that 
the alleged subsidy is inconsistent with the Agreement, the admin-
istering authority may request the Commissioner of Customs to 
compile information on an expedited basis regarding entries of the 
class or kind of merchandise that is the subject of the investigation. 
Records. 
Upon receiving such request, the Commissioner of Customs shall 
collect information regarding the volume and value of entries of the 
class or kind of merchandise that is the subject of the investigation 
and shall transmit such information to the administering authority 
at such times as the administering authority shall direct (at least 
once every 30 days), until a final determination is made under 
section 705(a), the investigation is terminated, or the administering 
authority withdraws the request.". 
(2) Paragraph (1) of section 703(e) (19 U.S.C. 1671b(eXl)) is 
amended by inserting "(at any time after the initiation of the 
investigation under this subtitle)" after "promptly". 
(3) Subparagraph 
(A) of section 
705(b)(4) (19 U.S.C. 
1671d(bX4XA)) is amended to read as follows: 
"(A) RETROACTIVE APPLICATION.— 
"(i) IN GENERAL.—If the finding of the administering 
authority under subsection (aX2) is affirmative, then 
the final determination of the Commission shall 
include a finding as to whether retroactive imposition 
of a countervailing duty on the merchandise appears 
necessary to prevent recurrence of material injury that 
was caused by massive imports of the merchandise over 
a relatively short period of time and will be difficult to 
repair. 
(ii) PREVENTION OF RECURRENCE.—For purposes of 
making its finding under clause (i), the Commission 
shall make an evaluation as to whether the effective-
ness of the countervailing duty order would be materi-
ally impaired if such imposition did not occur. 
"(iii) EVALUATION OF EFFECTIVENESS.—In making the 
evaluation under clause (ii), the Commission shall con-
sider, among other factors it considers relevant— 
"(I) the condition of the domestic industry, 
"(II) whether massive imports of the merchan-
dise over a relatively short period of time can be 
accounted for by efforts to avoid the potential 
imposition of countervailing duties, 
(III) whether foreign economic conditions led to 
the massive imports of the merchandise, and 
"(IV) whether the impact of the massive imports 
of the merchandise is likely to continue for some 
period after issuance of the countervailing duty 
order under this subtitle.", 
(b) ANTIDUMPING DUTY INVESTIGATIONS.— 
(1) Section 732 (19 U.S.C. 1673a) is amended by adding at the 
end thereof the following new subsection: 
Records. 
"(e) INFORMATION REGARDING CRITICAL CIRCUMSTANCES.—If, at 
any time after the initiation of an investigation under this subtitle, 
the administering authority finds a reasonable basis to suspect 
that— 
"(1) there is a history of dumping in the United States or 
elsewhere of the class or kind of the merchandise which is the 
subject of the investigation, or 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1201 
"(2) the person by whom, or for whose account, the merchan-
dise was imported knew, or should have known, that the ex-
porter was seUing the merchandise which is the subject of the 
investigation at less than its fair value, 
the administering authority may request the Commissioner of Cus-
toms to compile information on an expedited basis r^arding entries 
of the class or kind of merchandise that is the subject of the 
investigation. Upon receiving such request, the Commissioner of 
Customs shall collect information reganting the volume and value of 
entries of the class or kind of merchandise that is the subject of the 
invest^ation and shall transmit such information to the administer-
ing authority at such times as the administering authority shall 
direct (at least once every 30 days), until a final determination is 
made under section 735(a), the investigation is terminated, or the 
administering authority withdraws the request.". 
(2) Paragraph (1) of section 733(e) (19 U.S.C. 1673b(eXl)) is 
amended by inserting "(at any time after the initiation of the 
investigation under this subtitle)" after "promptly". 
(3) Subparagraph 
(A) of section 
735(bX4) (19 U.S.C. 
1673d(bX4XA)) is amended to read as follows: 
"(A) RETROACTTVE APPUCATION.— 
"(i) IN GENERAL.—If the finding of the administering 
authority under subsection (aX3) is affirmative, then 
the final determination of the Commission shall in-
clude a finding as to whether retroactive imposition of 
antidumping duties on the merchandise appears nec-
essary to prevent recurrence of material injury that 
was caused by massive imports of the merchandise over 
a relatively short period of time. 
"(ii) PREVENTION OF RECURRENCE.—^For purposes of 
making its finding under clause (i), the Commission 
shall make an evaluation as to whether the effective-
ness of the antidumping duty order would be materi-
ally impaired if such imposition did not occur. 
"(iii) EIvALUATiON O
F EFFECTIVENESS.—In making the 
evaluation under clause (ii), the O)mmission shall con-
sider, among other factors it considers relevant— 
"(I) the condition of the domestic industry, 
"(II) whether massive imports of the merchan-
dise in a relatively short period of time can be 
accounted for by efforts to avoid the potential im-
position of antidumping duties, 
"(III) whether foreign economic conditions led to 
the massive imports of the merchandise, and 
"(TV) whether the impact of the massive imports 
of the merchandise is likely to continue for some 
period after issuance of the antidumping duty 
order under this subtitle.". 
SEC. 1325. EXPEDITED REVIEW AUTHORITY. 
(a) IN GENERAL.—Paragraph (1) of section 736(c) (19 U.S.C. 
1673e(cXl)) is amended to read as follows: 
"(1) 
CONDITIONS FOR WAIVER OF DEPOSIT OF ESTIMATED 
DUTIES.—^The administering authority may permit, for not more 
than 90 days after the date of publication of an order under 
subsection (a), the posting of a bond or other security in lieu of 
102 STAT. 1202 
PUBLIC LAW 100-418—AUG. 23, 1988 
the deposit of estimated antidumping duties required under 
subsection (a)(3) i
f
— 
"(A) the investigation has not been designated as extraor-
dinarily complicated by reason o
f
— 
'(i) the number and complexity of the transactions to 
be investigated or adjustments to be considered, 
"(ii) the novelty of the issues presented, or 
"(iii) the number of firms whose activities must be 
investigated, 
"(B) the final determination in the investigation has not 
been postponed under section 735(a)(2)(A); 
"(C) on the basis of information presented to the admin-
istering authority by any manufacturer, producer, or ex-
porter in such form and within such time as the administer-
ing authority may require, the administering authority is 
satisfied that a determination will be made, within 90 days 
after the date of publication of an order under subsection 
(a), of the foreign market value and the United States price 
for all merchandise of such manufacturer, producer, or 
exporter described in that order which was entered, or 
withdrawn from warehouse, for consumption on or after 
the date of publication of^ 
"(i) an affirmative preliminary determination by the 
administering authority under section 733(b), or 
"(ii) if its determination under section 733(b) was 
negative, an affirmative final determination by the 
administering authority under section 735(a), 
and before the date of publication of the affirmative final 
determination by the Commission under section 735(b); 
"(D) the party described in subparagraph (C) provides 
credible evidence that the amount by which the foreign 
market value of the merchandise exceeds the United States 
price of the merchandise is significantly less than the 
amount of such excess specified in the antidumping duty 
order published under subsection (a); and 
"(E) the data concerning the foreign market value and 
the United States price apply to sales in the usual commer-
cial quantities and in the ordinary course of trade and the 
number of such sales are sufficient to form an adequate 
basis for comparison.", 
(b) BUSINESS PROPRIETARY INFORMATION.—Subsection (c) of section 
736 (19 U.S.C. 1673e(c)) is amended by adding at the end thereof the 
following new paragraph: 
"(4) PROVISION OF BUSINESS PROPRIETARY INFORMATION; WRIT-
TEN COMMENTS.—Before determining whether to permit the 
posting of bond or other security under paragraph (1) in lieu of 
the deposit of estimated antidumping duties, the administering 
authority shall— 
"(A) make all business proprietary information supplied 
to the administering authority under paragraph (1) avail-
able under a protective order in accordance with section 
777(c) to all interested parties described in subparagraph 
(C), (D), (E), (F), or (G) of section 771(9), and 
"(B) afford all interested parties an opportunity to file 
written comments on whether the posting of bond or other 
security under paragraph (1) in lieu of the deposit of esti-
mated antidumping duties should be permitted.'. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1203 
SEC. 1326. PROCESSED AGRICULTURAL PRODUCTS. 
(a) DEFINITION OF INDUSTRY PRODUCING PROCESSED AGRICULTURAL 
PRODUCTS.—Paragraph (4) of section 771 (19 U.S.C. 1677(4)) is 
amended by addmg at the end thereof the following new subpara-
graph: 
"(E) 
INDUSTRY 
PRODUCING 
PROCESSED AGRICULTURAL 
PRODUCTS.— 
"(i) IN GENERAL.—Subject to clause (v), in an inves-
tigation involving a processed agricultural product 
produced from any raw agricultural product, the 
producers or growers of the raw agricultural product 
may be considered part of the industry producing the 
processed product if— 
"(I) the processed agricultural product is pro-
duced from the raw agricultural product through a 
single continuous line of production; and 
"(ID there is a substantial coincidence of eco-
nomic interest between the producers or growers of 
the raw agricultural product and the processors of 
the proce^ed agricultural product based upon rel-
evant economic factors, which may, in the discre-
tion of the Commission, include price, added 
market value, or other economic interrelationships 
(regardless of whether such coincidence of eco-
nomic interest is based upon any legal relation-
ship), 
"(ii) PROCESSING.—For purposes of this subpara-
graph, the processed agricultural product shall be 
considered to be processed from a raw agricultural 
product through a single continuous Line of production 
if— 
"(I) the raw agricultural product is substantially 
or completely devoted to the production of the 
processed agricultural product; and 
"(IE) the processed agricultural product is pro-
duced substantially or completely from the raw 
^ 
*
* 
product. 
"(iii) RELEVANT ECONOMIC FACTORS.—For purposes of 
clause (i)(n), in addition to such other factors it consid-
ers relevant to the question of coincidence of economic 
interest, the O)mmission shall— 
"(I) if price is taken into account, consider the 
d^ree of correlation between the price of the raw 
agricultural product and the price of the proce^ed 
agricultural product; and 
"(II) if added market value is taken into account, 
consider whether the value of the raw agricultural 
product constitutes a significant percentage of the 
value of the processed agricultural product. 
"(iv) RAW AGRICULTURAL PRODUCT.—For purposes of 
this subparagraph, the term 'raw agricultural product' 
means any farm or fishery product. 
"(v) 
TERMINATION OF THIS SUBPARAGRAPH.—This 
subparagraph shall cease to have effect if the United 
States IVade Representative notifies the administering 
authority and the Commission that the application of 
102 STAT. 1204 
PUBLIC LAW 100-418—AUG. 23, 1988 
this subparagraph is inconsistent with the inter-
national obligations of the United States.". 
(b) THREAT OF MATERIAL INJURY.—Section 771(7XF) (19 U.S.C. 
1677(7XF)) is amended— 
(1) by striking out "and" at the end of subclause (VII); 
(2) by striking out the period at the end of subclause (VIII) 
and inserting ", and"; and 
(3) by adding at the end thereof the following: 
"(IX) in any investigation under this title which 
involves imports of both a raw agricultural product 
(within the meaning of paragraph (4XEXiv)) and 
any product processed from such raw agricultursd 
product, the likelihood that there will be increased 
imports, by reason of product shifting, if there is an 
affirmative 
determination by the Commission 
under section 705(bXl) or 735(bXl) with respect to 
either the raw agricultural product or the proc-
essed agricultural product (but not both).". 
(c) INTERESTED PARTIES.—Section 771(9) (19 U.S.C. 1677(9)) is 
amended— 
(1) by striking out "and" at the end of subparagraph (E); 
(2) by striking out the period at the end of subparagraph (F) 
and inserting in lieu thereof ", and"; and 
(3) by adding at the end thereof the following new subpara-
graph: 
"(G) in any investigation under this title involving an 
industry engaged in producing a processed agricultural 
product, as defined in paragraph (4XE), a coalition or trade 
association which is representative of either— 
"(i) processors, 
"(ii) processors and producers, or 
"(iii) processors and growers, 
but this subparagraph shall cease to have effect if the 
United States Trade Representative notifies the administer-
ing authority and the Commission that the application of 
this subparagraph is inconsistent with the international 
obligations of the United States.". 
(d) CONFORMING AMENDMENTS.— 
19 use 1671 et 
(1) Title VII of the Tariff Act of 1930 is amended by striking 
««9. 
out "subparagraph (C), (D), (E), or (F) of section 771(9)" each 
place it appears and inserting in lieu thereof "subparagraph (C), 
(D), (E), (F), or (G) of section 771(9)". 
(2) Title VII of the Tariff Act of 1930 is amended by striking 
out "subparagraph (C), (D), (E), and (F) of section 771(9)" each 
place it appears and inserting in lieu thereof "subparagraph (C), 
(D), (E), (F), or (G) of section 771(9)". 
(3) Subsection (a) of section 516 of the Tariff Act of 1930 (19 
U.S.C. 1516(a)) is amended by adding at the end thereof the 
following new paragraph: 
"(3) Any producer of a raw agricultural product who is considered 
under section 771(4XE) to be part of the industry producing a 
processed agricultural product of the same class or kind as the 
designated imported merchandise shall, for purposes of this section, 
be treated as an interested party producing such processed agricul-
tural product.". 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1205 
SEC. 1327. LEASES EQUIVALENT TO SALES. 
Section 771 (19 U.S.C. 1677) is amended by adding at the end 
thereof the foUowii^ new paragraph: 
"(19) EQUIVALENCY OP LEASES TO SALES.—In determining 
whether a lease is equivalent to a sale for purposes of this title, 
the administering authority shall consider— 
"(A) the terms of the lease, 
"(B) commercial practice within the industry, 
"(C) the circumstances of the transaction, 
"(D) whether the product subject to the lease is in-
' 
t^rated into the operations of the lessee or importer, 
(E) whether in practice there is a likelihood that the 
lease will be continued or renewed for a significant period 
of time, and 
"(F) other relevant factors, including whether the lease 
transaction would permit avoidance of antidumping or 
countervailii^ duties.". 
SEC 1328. MATERIAL INJURY. 
Section 771(7) (19 U.S.C. 1677(7)) is amended— 
(1) by amending subparagraph (B) to read as follows: 
"(B) VOLUME AND CONSEQUENT IMPACT.—In making deter-
minations under sections 703(a), 705(b), 733(a), and 735(b), 
the Commission, in each case— 
"(i) shall consider— 
"(I) the volume of imports of the merchandise 
which is the subject of the investigation, 
"(II) the effect of imports of that merchandise on 
prices in the United States for like products, and 
"(IQ) the impact of imports of such merchandise 
on domestic producers of like products, but only in 
the context of production operations within the 
United States; and 
"(ii) may consider such other economic factors as are 
relevant to the determination regarding whether there 
is material injury by reason of imports. 
In the notification required under section 705(d) or 735(d), 
as the case may be, the Commission shall explain its analy-
sis of each factor considered under clause (i), and identify 
each factor considered under clause (ii) and explain in full 
its relevance to the determination."; and 
(2) by amending subparagraph (CO^ 
(A) by amending the neaiding to read as follows: "(Q 
EVALUATION OP RELEVANT PACTORS.—", 
(B) by striking out "price undercutting" in clause (ii) and 
inserting "price underselling", and 
(C) bv amending clause (iii) to read as follows: 
(iii) IMPACT ON APPECTED DOMESTIC INDUSTRY.—In 
examining the impact required to be considered under 
subparagraph (BXiii), the (Commission shall evaluate all 
relevant economic factors which have a bearing on the 
stete of the industry in the United Stotes, including, 
but not limited to— 
"(I) actual and potential decline in output, sales, 
market share, profits, productivity, return on 
investments, and utilization of capacity, 
"dD factors affecting domestic prices. 
102 STAT. 1206 
PUBLIC LAW 100-418—AUG. 23, 1988 
Employment 
"(III) actual and potential negative effects on 
and 
cash flow, inventories, emplo5rment, wages, growth, 
unemployment. 
ability to raise capital, and investment, and 
^^^" 
• 
"(IV) actual and potential negative effects on the 
7i 
existing development and production efforts of the 
domestic industry, including efforts to develop a 
derivative or more advanced version of the like 
product. 
The Commission shall evaluate all relevant economic 
factors described in this clause within the context of 
the business cycle and conditions of competition that 
are distinctive to the affected industry.". 
SEC. 1329. THREAT OF MATERIAL INJURY. 
Subparagraph (F) of section 771(7) (19 U.S.C. 1677(7XF)) (as 
amended by section 1326) is further amended— 
(1) by striking out "and" at the end of clause (i)(VIII), 
(2) by striking out the period at the end of clause (iXIX), 
(3) by adding at the end of clause (i) the following new 
subclause: 
"(X) the actual and potential negative effects on the 
existing development and production efforts of the 
* 
domestic industry, including efforts to develop a deriva-
tive or more advanced version of the like product.", and 
(4) by adding at the end thereof the following: 
"(iii) EFFECT OF DUMPING IN THIRD-COUNTRY MAR-
KETS.— 
"(I) IN GENERAL.—In investigations under sub-
' ' 
* 
title B, the Commission shall consider whether 
: 
dumping in the markets of foreign countries (as 
evidenced by dumping findings or antidumping 
remedies in other GATT member markets against 
the same class or kind of merchandise manufac-
tured or exported by the same party as under 
investigation) suggests a threat of material injury 
to the domestic industry. In the course of its inves-
tigation, the Commission shall request information 
;\! 
from the foreign manufacturer, exporter, or United 
i«ij, 
States importer concerning this issue. 
*'**'* 
"(II) GATT MEMBER MARKET.—For purposes of 
this clause, the term 'GATT member market' 
means the market of any country which is a signa-
tory to The Agreement on Implementation of Arti-
cle VI of the General Agreement on Tariffs and 
Trade (relating to antidumping measures). 
"(Ill) EUROPEAN COMMUNITIES.—For purposes of 
this clause, the European Communities shall be 
treated as a foreign country.". 
SEC. 1330. CUMULATION. 
(a) THREAT OF INJURY.—Subparagraph (F) of section 771(7) (19 
U.S.C. 1677(7XF)) (as amended by section 1329) is further amended 
by adding at the end thereof the following new clause: 
"(iv) CUMULATION.—To the extent practicable and 
subject to subparagraph (CXv), for purposes of clause (i) 
(III) and (IV) the Commission may cumulatively assess 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1207 
the volume and price effects of imports from two or 
more countries if such imports— 
"(I) compete with each other, and with like prod-
ucts of the domestic industry, in the United States 
market, and 
"(U) are subject to any investigation under sec-
tion 303,701, or 731.". 
(b) TREATBCENT OF NEGUGIBLE IMPORTS.—Subparagraph (C) of sec-
tion 771(7) (19 U.S.C. 1677(7X0) is amended by adding at the end 
thereof the following new clause: 
"(v) 
TREATMENT 
OF 
NEGUGIBLE 
IMPORTS.—The 
Commission is not required to apply clause (iv) or 
subparagraph (FXiv) in any case in wluch the (Commis-
sion determines that imports of the merchandise sub-
ject to investigation are n^ligible and have no 
discemaUe adverse impact on the domestic industry. 
For purposes of makmg such determination, the 
Commission shall evaluate all relevant economic fac-
tors r^arding the imports, including, but not limited 
to, whether— 
"(I) the volume and market share of the imports 
are n^ligible, 
"(n) sales transactions involving the imports are 
isolated and sporadic, and 
"(OS) the domestic market for the like product is 
price sensitive by reason of the nature of the prod-
uct, so that a small quantity of imports can result 
in price suppression or depression. 
For purposes of this clause, the (Dommission may treat 
as n^ligible and having no discemable adverse impact 
on the domestic industry imports that are the product 
of any country that is a party to a free trade area 
agreement with the United States which entered into 
force and effect before January 1, 1987, if the Commis-
sion determines that the domestic industry is not being 
materially injured by reason of such imports.". 
SEC. 1331. CERTIFICATION OF SUBMISSIONS. 
Section 776 (19 U.S.C. 1677e) is amended— 
(1) by redesignating subsections (a) and (b) as subsections (b) 
and (c), respectively, 
(2) by amending the heading to subsection (b) (as so redesig-
nated) to read as follows: "(b) VERIFICATION.—", and 
(3) by inserting before such subsection (b) the following: 
"(a) CtaiTiFiCATiON O
F SUBMISSIONS.—Any person providing fac-
tual information to the administering authority or the C!ommission 
in connection with a proceeding under this title on behalf of the 
petitioner or any other interested party shall certify that such 
information is accurate and complete to the best of tjiat perscm's 
knowledge.". 
SEC. 1332. ACCESS TO INFORMATION. 
Section 777 (19 U.S.C. 1677£) is amended— 
(1) by amending subsection (bXl)(BXii) to read as follows: 
"(ii) a statement to the administering authority or 
,t, 
the Commission that the business proprietary informa-
102 STAT. 1208 
PUBLIC LAW 100-418—AUG. 23, 1988 
tion is of a type that should not be released under 
administrative protective order,"; 
(2) by amending subsection (cXl)— 
(A) by amending subparagraph (A) to read as follows: 
"(A) IN GENERAL.—Upon receipt of an application (before 
or after receipt of the information requested) which de-
scribes in general terms the information requested and sets 
forth the reasons for the request, the administering author-
ity or the Conunission shall make all business proprietary 
information presented to, or obtained by it, during a 
proceeding 
(except 
privil^ed 
information, 
classified 
information, and specific information of a type for which 
there is a clear and compelling need to withhold from 
disclosure) available to interested piarties who are parties to 
the proceeding under a protective order described in 
subparagraph (B), r^ardless of when the information is 
submitt^ during a proceeding."; and 
(B) by adding at the end thereof the following new sub-
paragraphs: 
"(C) TIME LIMITATION ON DETERMINATIONS.—The admin-
istering authority or the Commission, as the case may be, 
shall determine whether to make information available 
under this paragraph— 
"(i) not later than 14 days (7 da^ if the submission 
pertains to a proceeding under section 703(a) or 733(a)) 
after the date on which the information is submitted, 
or 
"(ii) if— 
"d) the person that submitted the information 
raises objection to its release, or 
"(ID the information is unusually voluminous or 
complex, 
not later than 30 days (10 days if the submission per-
tains to a proceeding under section 703(a) or 733(a)) 
after the date on which the information is submitted. 
"(D) AVAILABILITY AFTER DETERMINATION.—If the deter-
mination under subparagraph (C) is affirmative, then— 
"(i) the business proprietary information submitted 
to the administering authority or the Commission on or 
before the date of the determination shall be made 
available, subject to the terms and conditions of the 
protective order, on such date; and 
"(ii) the business proprietsury information submitted 
to the administering authority or the C!ommission after 
the date of the determination shall be served as re-
quired by subsection (d). 
"(E) FAILURE TO DISCLOSE.—If a person submitting 
information to the administering authority refuses to dis-
close business proprietary information which the admin-
istering authority determines should be released under a 
protective order described in subparajgraph (B), the admin-
istering authority shaU return the information, and any 
nonconfidential summary thereof, to the person submitting 
the information and summary and shall not consider 
either."; 
(3) by striking out "or the (Dommission denies a request for 
proprietary information submitted by the petitioner or an in-
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1209 
terested party in support of the petitioner concerning the 
domestic price or cost of production of the like product," in 
subsection (cX2); and 
(4) by adding at the end thereof the following new subsections: 
"(d) SERVICE.—Any party submitting written information, includ-
ing business proprietary information, to the administering authority 
or the Commission during a proceeding shall, at the same time, 
serve the information upon all interested parties who are parties to 
the proceeding, if the information is covered by a protective order. 
The administering authority or the Commission shall not accept any 
such information that is not accompanied by a certificate of service 
and a copy of the protective order version of the document contain-
ing the information. Business proprietary information shall only be 
served upon interested parties who are parties to the proceeding 
that are subject to protective order; however, a nonconfidential 
summary thereof shall be served upon all other interested parties 
who are parties to the proceeding. 
"(e) TIMELY SUBMISSIONS.—Information shall be submitted to the 
administering authority or the Commission during the course of a 
proceeding on a timely basis and shall be subject to comment by 
other parties within such resisonable time as the administering 
authority or the Commission shall provide. If information is submit-
ted without an adequate opportunity for other parties to comment 
thereon, the administering authority or the Commission may return 
the information to the party submitting it and not consider it.". 
SEC. 1333. CORRECTION OF MINISTERIAL ERRORS. 
(a) FINAL DETERMINATIONS.—Sections 705 and 735 (19 U.S.C. 1671d 
and 1673d) are each amended by adding at the end thereof the 
following new subsection: 
"(e) 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 under 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 function, clerical errors resulting from inaccurate copy-
ing, duplication, or the like, and any other type of unintentionsd 
error which the administering authority considers ministerial.". 
(b) ADMINISTRATIVE REVIEW.—Section 751 (19 U.S.C. 1675) is 
amended by adding at the end thereof the following new subsection: 
"(f) 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 under 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 function, clerical errors resulting from inaccurate copy-
ing, duplication, or the like, and any other type of unintentional 
error which the administering authority considers ministerial.". 
SEC. 1334. DRAWBACK TREATMENT. 
(a) IN GENERAL.—Section 779 (19 U.S.C. 1677h) is amended by 
striking out "shall be treated as any other customs duties." and 
inserting "shall not be treated as being regular customs duties.". 
102 STAT. 1210 
PUBLIC LAW 100-418—AUG. 23, 1988 
(b) CONFORMING AMENDMENTS.— 
(1) The section heading for such section 779 is amended by 
striking out "DRAWBACKS" and inserting "DRAWBACK 
TREATMENT". 
(2) The table of contents for title VH of the Tariff Act of 1930 
is amended by striking out "Drawbacks." in the entry for 
section 779 and inserting "Drawback treatment.". 
SEC. 1335. GOVERNMENTAL IMPORTATIONS. 
Section 771 of the Tariff Act of 1930 (19 U.S.C. 1677) (as amended 
by section 1316(b)) is amended by adding at the end thereof the 
following new paragraph: 
"(19) APPUCATION TO GOVERNMENTAL IMPORTATIONS.— 
"(A) IN GENERAL.—Ebccept as otherwise provided by this 
paragraph, merchandise imported by, or for the use of, a 
department or agency of the U n i t ^ States Grovemment 
(including merchandise provided for under schedule 8 of the 
Tariff Schedules of the United States) is subject to the 
imposition of countervailing duties or antidumping duties 
under this title or section 303. 
"(B) EXCEPTIONS.—Merchandise imported by, or for the 
use of, the Department of Defense shall not be subject to 
the imposition of countervailing or antidumping duties 
under this title if— 
"(i) the merchandise is acquired by, or for use of, such 
Department— 
"(I) from a country with which such Department 
had a Memorandum of Understanding which was 
in effect on January 1, 1988, and has continued to 
have a comparable agreement (including renewals) 
or superceding agreements, and 
"(II) in accordance with terms of the Memoran-
dum of Understanding in effect at the time of 
importation, or 
"(ii) the merchandise has no substantial nonmilitary 
use.". 
SEC. 1336. STUDIES. 
(a) STUDY OF MARKET ORIENTATION OF CHINA.—The Secretary of 
Commerce, in consultation with the heads of other appropriate 
Federal s^encies, shall imdertake a study regarding the new market 
orientation of the People's Republic of China. The study shall 
address, but not be limited to— 
(1) the effect of the new orientation on Chinese market poli-
cies and price structure, and the relationship between domestic 
Chinese prices and world prices; 
(2) the extent to which United States trade law practices can 
accommodate the increased market orientation of the Chinese 
economy; and 
(3) the possible need for changes in United States antidump-
ing laws as they apply to foreign countries, such as China, 
which are in transition to a more market-oriented economy. 
Reports. 
The Secretary of Ck)mmerce shall submit to the (Dongress within 1 
year after the date of the enactment of this Act a report on the 
study required under this subsection. 
(b) SUBSIDIES (DODE COMMITMENTS.—Within 90 da3rs after the date 
of the enactment of this Act, the United States Trade Representa-
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1211 
tive shall initiate a review of all bilateral subsidy commitments that 
have been entered into by foreign governments with the United 
States. The review shall include— 
(1) an evaluation of the extent to which the commitments 
have been complied with; 
(2) with respect to those commitments found under paragraph 
(1) not to have been complied with, an estimate regarding when 
compliance is likely; and 
(3) recommendations regarding how compliance can be 
improved. 
The United States Trade Representative shall complete the review 
required under this subsection and submit a report thereon to the 
Committee on Ways and Means of the House of Representatives and 
the Committee on Finance of the Senate within 180 days after the 
date of the enactment of this Act. 
SEC. 1337. EFFECTIVE DATES. 
(a) IN GENERAL.—Except as otherwise provided in this section, the 
amendments made by this part shall take effect on the date of 
enactment of this Act. 
(b) INVESTIGATIONS AND REVIEWS AFTER ENACTMENT.—The amend-
ments made by sections 1312, 1315, 1316, 1318, 1325, 1326, 1327, 
1328,1329,1331, and 1332 shall only apply with respect to— 
(1) investigations initiated after the date of enactment of this 
Act, and 
(2) reviews initiated under section 736(c) or 751 of the Tariff 
Act of 1930 after the date of enactment of this Act. 
(c) INVESTIGATIONS AFTER ENACTMENT.—The amendments made 
by sections 1324 and 1330 shall only apply with respect to investiga-
tions initiated after the date of enactment of this Act. 
(d) PREVENTION OF CIRCUMVENTION OF DUTIES; DRAWBACK.—The 
provisions of section 781 of the Tariff Act of 1930, as added by 
section 1321(a), and the amendments made by section 1334 shall 
apply with respect to articles entered, or withdrawn from warehouse 
for consumption, on or after the date of enactment of this Act. 
(e) GOVERNMENTAL IMPORTATIONS; STEEL.—The amendments made 
by sections 1321(b) and 1335 shall apply with respect to entries, and 
withdrawals from warehouse for consumption, that are liquidated 
on or after the date of enactment of this Act. 
(f) FICTITIOUS MARKETS.—The amendment made by section 1319 
shall only apply with respect to— 
(1) reviews initiated under section 736(c) or 751 of the Tariff 
Act of 1930 after the date of enactment of this Act, and 
(2) reviews initiated under such sections— 
(A) which are pending on the date of enactment of this 
Act, and 
(B) in which a request for revocation is pending on the 
date of enactment of this Act. 
Reports. 
19 u s e 1671 
note. 
PART 3—PROTECTION OF INTELLECTUAL 
PROPERTY RIGHTS 
Copyrights. 
Patents and 
trademarks. 
SEC. 1341. CONGRESSIONAL FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds that— 
19 u s e 1337 
note. 
102 STAT. 1212 
PUBLIC LAW 100-418—AUG. 23, 1988 
(1) United States persons that rely on protection of intellec-
tual property rights are among the most advanced and competi-
tive in the world; and 
(2) the existing protection under section 337 of the Tariff Act 
of 1930 against unfair trade practices is cumbersome and costly 
and has not provided United States owners of intellectual prop-
erty rights with adequate protection against foreign companies 
violating such rights. 
(b) PURPOSE.—^The purpose of this part is to amend section 337 of 
the Tariff Act of 1930 to make it a more effective remedy for the 
protection of United States intellectual property rights. 
SEC 1342. PROTECTION UNDER THE TARIFF ACT OF 1930. 
(a) IN GENERAL.—Section 337 of the Tariff Act of 1930 (19 U.S.C. 
1337) is amended as follows: 
(1) Subsection (a) is amended to read as follows: 
"(aXl) Subject to paragraph (2), the following are unlawful, and 
when found by the Commission to exist shall be dealt with, in 
addition to any other provision of law, as provided in this section: 
"(A) UidTair methods of competition and unfair acts in the 
importation of articles (other than articles provided for in sub-
paragraphs (B), (C), and (D)) into the United States, or in the 
sale of such articles by the owner, importer, or consignee, the 
threat or effect of which is— 
"(i) to destroy or substantially injure an industry in the 
United States; 
"(ii) to prevent the establishment of such an industry; or 
"(iii) to restrain or monopolize trade and commerce in the 
United States. 
"(B) The importation into the United States, the sale for 
importation, or the sale within the United States after importa-
tion by the owner, importer, or consignee, of articles that— 
"(i) infringe a valid and enforceable United States patent 
or a valid and enforceable United States copyright reg-
istered under title 17, United States Code; or 
"(ii) are made, produced, processed, or mined under, or by 
means of, a process covered by the claims of a valid and 
enforceable United States patent. 
"(C) The importation into the United States, the sale for 
importation, or the sale within the United States after importa-
tion by the owner, importer, or consignee, of articles that 
infringe a valid and enforceable United States trademark r o -
istered under the Trademark Act of 1946. 
"(D) The importation into the United States, the sale for 
importation, or the sale within the United States sifter importa-
tion by the owner, importer, or consignee, of a semiconductor 
chip product in a manner that constitutes infringement of a 
mask work registered under chapter 9 of title 17, United States 
Code. 
"(2) Subparagraphs (B), ((D), and (D) of paragraph (1) apply only if 
an industry in the United States, relating to the articles protected 
by the patent, copyright, trademark, or mask work concerned, exists 
or is in the process of being established. 
"(3) For purposes of paragraph (2), an industry in the United 
States shall be considered to exist if there is in the United States, 
with respect to the articles protected by the patent, copyright, 
trademark, or mask work concerned— 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1213 
"(A) significant investment in plant and equipment; 
"(B) significant emplo3rment of labor or capital; or 
"(C) substantial investment in its exploitation, including 
engineering, research and development, or licensing. 
"(4) For the purposes of this section, the phrase 'owner, importer, 
or consignee' includes any agent of the owner, importer, or 
consignee.". 
(2) Subsection (c) is amended by inserting before the period in 
the first sentence the following: ", except that the Commission 
may, by issuing a consent order or on the basis of a settlement 
agreement, terminate any such investigation, in whole or in 
part, without making such a determination". 
(3) Subsection (e) is amended— 
(A) by striking out " I f in the first sentence and inserting 
"(1) If; and 
(B) by adding at the end thereof the following new 
paragraphs: 
"(2) A complainant may petition the Commission for the issuance 
of an order under this subsection. The Commission shall make a 
determination with regard to such petition by no later than the 90th 
day after the date on which the Commission's notice of investigation 
is published in the Federal Register. The Commission may extend 
the 90-day period for an additional 60 days in a case it designates as 
a more complicated case. The Commission shall publish in the 
Federal Register its reasons why it designated the case as being 
more complicated. The Commission may require the complainant to 
post a bond as a prerequisite to the issuance of an order under this 
subsection. 
"(3) The Commission may grant preliminary relief under this 
subsection or subsection (f) to the same extent as preliminary injunc-
tions and temporary restraining orders may be granted under the 
Federal Rules of Civil Procedure.". 
(4) Subsection (f) is amended— 
(A) by striking out "In lieu o f in paragraph (1) and 
inserting "In addition to, or in lieu of,"; and 
(B) by striking out "$10,000 or" in paragraph (2) and 
inserting "$100,000 or twice". 
(5) Such section is further amended— 
(A) by redesignating subsections (g), (h), (i), and 0
*
) as 
subsections (j), (k), (1), and (m), respectively; and 
(B) by inserting after subsection (f) the following new 
subsections: 
"(gXDIf-
"(A) a complaint is filed against a person under this section; 
"(B) the complaint and a notice of investigation are served on 
the person; 
"(C) the person fails to respond to the complaint and notice or 
otherwise fails to appear to answer the complaint and notice; 
"(D) the person fails to show good cause why the person 
should not be found in default; and 
"(E) the complainant seeks relief limited solely to that person; 
the Commission shall presume the facts alleged in the complaint to 
be true and shall, upon request, issue an exclusion from entry or a 
cease and desist order, or both, limited to that person unless, after 
considering the effect of such exclusion or order upon the public 
health and welfare, competitive conditions in the United States 
economy, the production of like or directly competitive articles in 
Federal 
Register, 
publication. 
102 STAT. 1214 
PUBLIC LAW 100-418—AUG. 23, 1988 
the United States, and United States consumers, the Commission 
finds that such exclusion or order should not be issued. 
"(2) In addition to the authority of the Commission to issue a 
general exclusion from entry of articles when a respondent appears 
to contest an investigation concerning a violation of the provisions 
of this section, a general exclusion from entry of articles, regardless 
of the source or importer of the articles, may be issued i
f
— 
"(A) no person appears to contest an investigation concerning 
a violation of the provisions of this section, and 
"(B) such a violation is established by substantial, reliable, 
and probative evidence. 
"(h) The Commission may by rule prescribe sanctions for abuse of 
discovery and abuse of process to the extent authorized by Rule 11 
and Rule 37 of the Federal Rules of Civil Procedure, 
"(i) FORFEITURE.— 
"(1) In addition to taking action under subsection (d), the 
Commission may issue an order providing that any article 
imported in violation of the provisions of this section be seized 
and forfeited to the United States if— 
"(A) the owner, importer, or consignee of the article 
previously attempted to import the article into the United 
States; 
_ 
"(B) the article was previously denied entry into the 
* 
United States by reason of an order issued under subsection 
(d); and 
"(C) upon such previous denial of entry, the Secretary of 
the Treasury provided the owner, importer, or consignee of 
the article written notice of^ 
"(i) such order, and 
"(ii) the seizure and forfeiture that would result from 
any further attempt to import the article into the 
United States. 
"(2) The Commission shall notify the Secretary of the Treas-
ury of any order issued under this subsection and, upon receipt 
of such notice, the Secretary of the Treasury shall enforce such 
order in accordance with the provisions of this section. 
"(3) Upon the attempted entry of articles subject to an order 
issued under this subsection, the Secretary of the Treasury shall 
immediately notify all ports of entry of the attempted importa-
tion and shall identify the persons notified under paragraph 
(IXC). 
"(4) The Secretary of the Treasury shall provide— 
"(A) the written notice described in paragraph (1)(C) to 
the owner, importer, or consignee of any article that is 
denied entry into the United States by reason of an order 
issued under subsection (d); and 
"(B) a copy of such written notice to the Commission.". 
(6) Subsection (k) (as redesignated by paragraph (5XB) of this 
section) is amended— 
(A) by inserting "(1)" before the first sentence; and 
(B) by adding at the end the following: 
"(2) If any person who has previously been found by the Commis-
sion to be in violation of this section petitions the Commission for a 
determination that the petitioner is no longer in violation of this 
section or for a modification or rescission of an exclusion from entry 
or order under subsection (d), (e), (f), (g), or (i)— 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1215 
"(A) the burden of proof in any proceeding before the Commis-
sion regarding such petition shall be on the petitioner; and 
"(B) relief may be granted by the Commission with respect to 
such petition— 
"(i) on the basis of new evidence or evidence that could 
not have been presented at the prior proceeding, or 
"(ii) on grounds which would permit relief from a judg-
ment or order under the Federal Rules of Civil Procedure.'. 
(7) Subsection (1) (as redesignated by paragraph (5XB) of this 
section) is amended— 
(A) by striking out "claims of United States letters 
patent" in the first sentence and inserting "a proceeding 
involving a patent, copjnright, or mask work under subsec-
tion (aXD"; and 
(B) by striking out "a patent owner" in the second sen-
tence and inserting "an owner of the patent, copyright, or 
mask work". 
(8) Such section is further amended by adding at the end the 
following: 
"(nXl) Information submitted to the Commission or exchanged Classified 
among the parties in connection with proceedings under this section information. 
which is properly designated as confidential pursuant to C!ommis-
sion rules may not be disclosed (except under a protective order 
issued under r^ulations of the Commission which authorizes lim-
ited disclosure of such information) to any person (other than a 
person described in paragraph (2)) without the consent of the person 
submitting it. 
"(2) Notwithstanding the prohibition contained in paragraph (1), 
information referred to in that paragraph may be disclosed t o ^ 
"(A) an officer or employee of the Commission who is directly 
concerned with canying out the investigation in connection 
with which the information is submitted, 
"(B) an officer or employee of the United States Government 
who is directly involved in the review under subsection (h), or 
"(C) an officer or employee of the United States Customs 
Service who is directly involved in administering an exclusion 
from entry under this section resulting from the investigation 
in connection with which the information is submitted.". 
(b) TECHNICAL AMENDMENTS.—Section 337 (as amended by subsec-
tion (a)) is further amended— 
(1) by amending subsection (b)— 
(A) by striking out "Department of Health, Education, 
and Welfare" in paragraph (2) and inserting "Department 
of Health and Human Services"; and 
(B) by striking out "Secretary of the Treasunr" in para-
graph (3) and inserting "Secretmy of C!ommerce'; 
(2) by amending subsection (c)— 
(A) by striking out "or (f)" and inserting "(f), or (g)", and 
(B) by striking out "and (f)" and inserting "(f), and (g)"; 
(3) by striking out "or (f)" each place it appears in subsection 
(j) and inserting "(D, (g), or (i)"; 
(4) by striking out "(g)" in subsection (k) and inserting "(j)"; 
and 
(5) by striking out "or (f)" in subsection (1) and inserting "(f), 
(g),or(i)". 
(c) CONFORMING AMENDMENT.—The Act entitled "An Act to limit 
the importation of products made, produced, processed, or mined 
102 STAT. 1216 
PUBLIC LAW 100-418—AUG. 23, 1988 
under process covered by unexpired valid United States patents, and 
for other purposes", approved July 2, 1940 (54 Stat. 724, 19 U.S.C. 
1337a), is repealed. 
19 use 1337 
((J) EFFECTIVE DATE.— 
"°*®- 
dXA) Subject to subparagraph (B), the amendments made by 
this section shall take effect on the date of the enactment of this 
Act. 
(B) The United States International Trade Commission is not 
required to apply the provision in section 337(eX2) of the Tariff 
Act of 1930 (as amended by subsection (aX3) of this section) 
relating to the posting of bonds until the earlier of— 
(i) the 90th day after such date of enactment; or 
(ii) the day on which the Commission issues interim 
regulations setting forth the procedures relating to such 
posting. 
(2) Notwithstanding any provision of section 337 of the Tariff 
Act of 1930, the United States International Trade Commission 
may extend, by not more than 90 days, the period within which 
the Commission is required to make a determination in an 
investigation conducted under such section 337 if— 
(A) the Commission would, but for this paragraph, be 
required to make such determination before the 180th day 
after the date of enactment of this Act; and 
(B) the Commission finds that the investigation is 
complicated. 
Teiecommunica- 
PART 4—TELECOMMUNICATIONS TRADE 
tions Trade Act 
19 U ^ 3101 
SEC. 1371. SHORT TITLE. 
note. 
This part may be cited as the "Telecommunications Trade Act of 
1988". 
19 use 3101. 
SEC.1372. FINDINGS AND PURPOSES. 
(a) FINDINGS.—The Congress finds that— 
(1) rapid growth in the world market for telecommunications 
products and services is likely to continue for several decades; 
(2) the United States can improve prospects for— 
(A) the growth of— 
(i) United States exports of telecommunications prod-
ucts and services, and 
(ii) export-related employment and consumer services 
in the United States, and 
(B) the continuance of the technological leadership of the 
United States, 
by undertaking a program to achieve an open world market for 
trade in telecommunications products, services, and investment; 
(3) most foreign markets for telecommunications products, 
services, and investment are characterized by extensive govern-
ment intervention (including restrictive import practices and 
discriminatory procurement practices) which adversely affect 
United States exports of telecommunications products and serv-
ices and United States investment in telecommunications; 
(4) the open nature of the United States telecommunications 
market, accruing from the liberalization and restructuring of 
such market, has contributed, and will continue to contribute, 
to £in increase in imports of telecommunications products and a 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1217 
growing imbalance in competitive opportunities for trade in 
telecommunications; 
(5) unless this imbalance is corrected through the achieve-
ment of mutually advantageous market opportunities for trade 
in telecommunications products and services between the 
United States and foreign countries, the United States should 
avoid granting continued open access to the telecommunications 
groducts and services of such foreign countries in the United 
tates market; and 
(6) the unique business conditions in the worldwide market 
for telecommunications products and services caused by the 
combination of deregulation and divestiture in the United 
States, which represents a unilateral liberalization of United 
States trade with the rest of the world, and continuing govern-
ment intervention in the domestic industries of many other 
countries create a need to make an exception in the case of 
telecommunications products and services that should not nec-
essarily be a precedent for legislating specific sectoral priorities 
in combating the closed markets or unfair foreign trade prac-
tices of other countries. 
(b) PURPOSES.—The purposes of this part are— 
(1) to foster the economic and technological growth of, and 
emplojnnent in, the United States telecommunications industry; 
(2) to secure a high quality telecommunications network for 
the benefit of the people of the United States; 
(3) to develop an international consensus in favor of open 
trade and competition in telecommunications products and 
services; 
(4) to ensure that countries which have made commitments to 
open telecommunications trade fully abide by those commit-
ments; and 
(5) to achieve a more open world trading system for tele-
communications products and services through negotiation and 
provision of mutually advantageous market opportunities for 
United Stetes telecommunications exporters £md their subsidi-
aries in those markets in which barriers exist to free inter-
national trade. 
SEC. 1373. DEFINITIONS. 
19 USC 3102. 
For purposes of this part— 
(1) The term "Trade Representetive" means the United Stetes 
i; 
Trade Representetive. 
(2) The term "telecommunications product" means— 
(A) any paging devices provided for under item 685.65 of 
such Schedules, and 
(B) any article classified under any of the following item 
numbers of such Schedules: 
684.57 
684.58 
684.59 
684.65 
684.66 
684.67 
684.80 
685.16 
685.24 
685.25 
685.28 
685.30 
685.31 
685.33 
685.34 
685.39 
685.48 
688.17 
688.41 
707.90. 
SEC. 1374. INVESTIGATION OF FOREIGN TELECOMMUNICATIONS TRADE 19 USC 3103. 
BARRIERS. 
(a) IN GENERAL.—The Trade Representetive shall conduct an 
investigation to identify priority foreign countries. Such investiga- Termination 
date. 
102 STAT. 1218 
PUBLIC LAW 100-418—AUG. 23, 1988 
19 u s e 3104. 
President of U.S. 
Contracts. 
President of U.S. 
tion shall be concluded by no later than the date that is 5 months 
after the date of enactment of this Act. 
(b) FACTORS TO BE TAKEN INTO ACCOUNT.—In identifying priority 
foreign countries under subsection (a), the Trade Representative 
shall take into account, among other relevant factors— 
(1) the nature and significance of the acts, policies, and prac-
tices that deny mutually advantageous market opportunities to 
telecommunications products and services of United States 
firms; 
(2) the economic benefits (actual and potential) accruing to 
foreign firms from open access to the United States market; 
(3) the potential size of the market of a foreign country for 
telecommunications products and services of United States 
firms; 
(4) the potential to increase United States exports of tele-
communications products and services, either directly or 
through the establishment of a beneficial precedent; and 
(5) measurable progress being made to eliminate 
the 
objectionable acts, policies, or practices. 
(c) REVOCATIONS AND ADDITIONAL IDENTIFICATIONS.— 
(1) The Trade Representative may at any time, after taking 
into account the factors described in subsection (b)— 
(A) revoke the identification of any priority foreign coun-
try that was made under this section, or 
(B) identify any foreign country as a priority foreign 
country under this section, 
if information available to the Trade Representative indicates 
that such action is appropriate. 
(2) The Trade Representative shall include in the semiannusd 
report submitted to the Congress under section 309(3) of the 
Trade Act of 1974 a detailed explanation of the reasons for the 
revocation under paragraph (1) of this subsection of any identi-
fication of any foreign country as a priority foreign country. 
(d) REPORT TO CONGRESS.—By no later than the date that is 30 
days after the date on which the investigation conducted under 
subsection (a) is completed, the United States Trade Representative 
shall submit a report on the investigation to the President and to 
appropriate committees of the Congress. 
SEC. 1375. NEGOTIATIONS IN RESPONSE TO INVESTIGATION. 
(a) IN GENERAL.—Upon— 
(1) the date that is 30 days after the date on which any foreign 
country is identified in the investigation conducted under sec-
tion 1374(a) as a priority foreign country, and 
(2) the date on which any foreign country is identified under 
section 1374(cXlXB) as a priority foreign country, 
the President shall enter into negotiations with such priority foreign 
country for the purpose of entering into a bilateral or multilateral 
trade agreement under part 1 of subtitle A which meets the specific 
negotiating objectives established by the President under subsection 
(b) for such priority foreign country. 
(b) ESTABUSHMENT OF SPECIFIC NEGOTIATING OBJECTIVES FOR E A C H 
FOREIGN PRIORITY COUNTRY.— 
(1) The President shall establish such relevant specific nego-
tiating objectives on a country-by-country basis as are necessary 
to meet the general negotiating objectives of the United Stated 
under this section. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1219 
(2XA) The President may refine or modify specific negotiating 
objectives for particular n^otiations in order to respond to 
circumstances 
arising 
during 
the 
n^otiating 
period, 
including— 
(i) changed practices by the priority foreign country, 
(ii) tangible substantive developments in multilateral 
n^otiations, 
(iii) changes in competitive positions, technological devel-
opments, or 
(iv) other relevant factors. 
(B) By no later than the date that is 30 days after the date on 
which the President makes any modifications or refinements to 
specific n^otiating objectives under subparagraph (A), the 
President shall submit to appropriate committees of the Con-
gress a statement describing such modifications or refinements 
and the reasons for such modifications or refinements. 
(c) GENERAL NEGOTIATING OBJECTIVES.—The general n^otiating 
objectives of the United States under this section are— 
(1) to obtain multilateral or bilateral agreements (or the 
modification of exibting agreements) that provide mutually 
advantageous market opportunities for trade in telecommuni-
cations products and services between the United States and 
foreign countries; 
(2) to correct the imbalances in market opportunities accruing 
from reductions in barriers to the access of telecommunications 
products and services of foreign firms to the United States 
3-
market; and 
(3) to facilitate the increase in United States exports of tele-
commimications products and services to a level of exports that 
reflects the competitiveness of the United States telecommuni-
cations industry. 
(d) SPECIFIC NEGOTIATING OBJECTIVES.—The specific negotiating 
objectives of the United States under this section r^arding tele-
communications products and services are to obtain— 
(1) national treatment for telecommunications products and 
services that are provided by United States firms; 
(2) most-favored-nation treatment for such products and 
services; 
(3) nondiscriminatory procurement policies with respect to 
such products and services and the inclusion under the Agree-
ment on Government Procurement of the procurement (by sale 
or lease by government-owned or controlled entities) of all 
telecommunications products and services; 
(4) the reduction or elimination of customs duties on tele-
communications products; 
(5) the elimination of subsidies, violations of intellectual 
property rights, and other unfair trade practices that distort 
international trade in telecommunications products and 
services; 
(6) the elimination of investment barriers that restrict the 
establishment of foreign-owned business entities which market 
such products and services; 
(7) assurances that any requirement for the r^istration of 
telecommunications products, which are to be located on cus-
tomer premises, for the purposes of— 
(A) attachment to a telecommunications network in a 
foreign country, and 
102 STAT. 1220 
PUBLIC LAW 100-418—AUG. 23, 1988 
(B) the marketing of the products in a foreign country, 
be limited to the certification by the manufacturer that the 
products meet the standards established by the foreign country 
for preventing harm to the network or network personnel; 
(8) transparency of, and open participation in, the standards-
setting processes used in foreign countries with respect to tele-
communications products; 
(9) the ability to have telecommunications products, which are 
to be located on customer premises, approved and registered by 
type, and, if appropriate, the establishment of procedures be-
tween the United States and foreign countries for the mutual 
recognition of type approvals; 
(10) access to the basic telecommunications network in foreign 
countries on reasonable and nondiscriminatory terms and 
conditions (including nondiscriminatory prices) for the provision 
of value-added services by United States suppliers; 
(11) the nondiscriminatory procurement of telecommuni-
cations products and services by foreign entities that provide 
local exchange telecommunications services which are owned, 
controlled, or, if appropriate, regulated by foreign governments; 
and 
(12) monitoring and effective dispute settlement mechanisms 
to facilitate compliance with matters referred to in the preced-
ing paragraphs of this subsection. 
President of U.S. 
SEC. 1376. ACTIONS TO BE TAKEN IF NO AGREEMENT OBTAINED. 
19 use 3105. 
(a) IN GENERAL.-
(1) If the President is unable, before the close of the negotiat-
ing period, to enter into an agreement under subtitle A with 
any priority foreign country identified under section 1374 which 
achieves the general negotiating objectives described in section 
1375(b) as defined by the specific objectives established by the 
President for that country, the President shall take whatever 
actions authorized under subsection (b) that are appropriate and 
most likely to achieve such general negotiating objectives. 
(2) In taking actions under paragraph (1), the President shall 
first take those actions which most directly affect trade in 
telecommunications products and services with the priority 
foreign country referred to in paragraph (1), unless the Presi-
dent determines that actions against other economic sectors 
would be more effective in achieving the general negotiating 
objectives referred to in paragraph (1). 
(b) ACTIONS AUTHORIZED.— 
(1) The President is authorized to take any of the following 
actions under subsection (a) with respect to any priority foreign 
country: 
(A) termination, withdrawal, or suspension of any portion 
of any trade agreement entered into with such country 
under— 
(i) the Trade Act of 1974, 
(ii) section 201 of the Trade Expansion Act of 1962, or 
(iii) section 350 of the Tariff Act of 1930, 
with respect to any duty or import restriction imposed by 
the United States on any telecommunications product; 
(B) actions described in section 301 of the Trade Act of 
1974; 
^'fp-W ' ' 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1221 
(C) prohibition of purchases by the Federal Grovernment 
of telecommunications products of such country; 
(D) increases in domestic preferences under title III of the 
Act of March 3,1933 (41 U.S.C. 10a, et seq.) for purchases by 
the Federal Government of telecommunications products of 
such country; 
(E) suspension of any waiver of domestic preferences 
under title III of the Act of March 3,1933 (41 U.S.C. 10a, et 
seq.) which may have been extended to such country pursu-
ant to the Trade Agreements Act of 1979 with respect to 
telecommunications products or any other products; 
(F) issuance of orders to appropriate officers and employ-
ees of the Federal Government to deny Federal funds or 
Federal credits for purchases of the telecommunications 
products of such country; and 
(G) suspension, in whole or in part, of benefits accorded 
articles of such country under title V of the Trade Act of 
1974 (19 U.S.C. 2461, et seq.). 
(2) Notwithstanding section 125 of the Trade Act of 1974 and 
any other provision of law, if any portion of a trade agreement 
described in paragraph (IXA) is terminated, withdrawn, or sus-
pended under paragraph (1) with respect to any duty imposed by 
the United States on the products of a foreign country, the rate 
of such duty that shall apply to such products entered, or 
withdrawn from warehouse for consumption, after the date on 
which such termination, withdrawal, or suspension takes effect 
shall be a rate determined by the President. 
(c) NEGOTIATING PERIOD.— 
(1) For purposes of this section, the term "negotiating period" 
means— 
(A) with respect to a priority foreign country identified in 
the investigation conducted under section 1374(a), the 18-
month period beginning on the date of the enactment of 
this Act, and 
(B) with respect to any foreign country identified as a 
priority foreign country after the conclusion of such inves-
tigation, the 1-year period beginning on the date on which 
such identification is made. 
(2XA) The negotiating period with respect to a priority foreign 
country may be extended for not more than two 1-year periods. 
(B) By no later than the date that is 15 days after the date on 
which the President extends the negotiating period with respect 
to any priority foreign country, the President shall submit to 
appropriate committees of the Congress a report on the status of 
negotiations with such country that includes— 
(i) a finding by the President that substantial progress is 
being made in negotiations with such country, and 
(ii) a statement detailing the reasons why an extension of 
such negotiating period is necessary. 
(d) MODIFICATION AND TERMINATION AUTHORITY.—The President 
may modify or terminate any action taken under subsection (a) if, 
after taking into consideration the factors described in section 
13740t)), the President determines that changed circumstances war-
rant such modification or termination. 
(e) REPORT.—The President shall promptly inform the appropriate 
committees of the Congress of any action taken under subsection (a) 
102 STAT. 1222 
PUBLIC LAW 100-418—AUG. 23, 1988 
or of the modification or termination of any such action under 
subsection (d). 
19 u s e 3106. 
SEC. 1377. REVIEW OF TRADE AGREEMENT IMPLEMENTATION BY TRADE 
REPRESENTATIVE. 
(a) IN GENERAL.— 
(1) In conducting the annual analysis under section 181(a) of 
the Trade Act of 1974 (19 U.S.C. 2241), the Trade Representative 
shall review the operation and effectiveness of— 
(A) each trade agreement negotiated by reason of this 
part that is in force with respect to the United States; and 
(B) every other trade agreement regarding telecommuni-
cations products or services that is in force with respect to 
the United States. 
(2) In each review conducted under paragraph (1), the Trade 
Representative shall determine whether any act, policy, or 
practice of the foreign country that has entered into the agree-
ment described in paragraph (1)— 
(A) is not in compliance with the terms of such agree-
ment, or 
(B) otherwise denies, within the context of the terms of 
such agreement, to telecommunications products and serv-
ices of United States firms mutually advantageous market 
opportunities in that foreign country. 
(b) REVIEW FACTORS.— 
(1) In conducting reviews under subsection (a), the Trade 
Representative shall consider any evidence of actual patterns of 
trade (including United States exports to a foreign country of 
telecommunications products and services, including sales and 
services related to those products) that do not reflect patterns of 
trade which would reasonably be anticipated to flow from the 
concessions or commitments of such country based on the inter-
national competitive position and export potential of such prod-
ucts and services. 
(2) The Trade Representative shall consult with the United 
States International Trade Commission with regard to the 
actual patterns of trade described in paragraph (1). 
(c) ACTION IN RESPONSE TO AFFIRMATIVE DETERMINATION.— 
(1) Any affirmative determination made by the Trade Rep-
resentative under subsection (aX2) with respect to any act, 
policy, or practice of a foreign country shall, for purposes of 
chapter 1 of title III of the Trade Act of 1974, be treated as an 
affirmative determination under section 304(aXlXA) of such Act 
that such act, policy, or practice violates a trade agreement. 
(2) In taking actions under section 301 by reason of paragraph 
(1), the Trade Representative shall first take those actions 
which most directly affect trade in telecommunications prod-
ucts and services with the priority foreign country referred to in 
paragraph (1), unless the Trade Representative determines that 
actions against other economic sectors would be more effective 
in achieving compliance by the foreign country with the trade 
agreement that is the subject of the affirmative determination 
made under subsection (aX2). 
19 use 3107. 
SEC. 1378. COMPENSATION AUTHORITY. 
If— 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1223 
President of U.S. 
19 u s e 3108. 
(1) the President has taken action under section 1376(a) with 
respect to any foreign country, and 
(2) such action is found to be inconsistent with the inter-
national obligations of the United States, including the General 
Agreement on Tariffs and Trade, 
the President may enter into trade agreements with such foreign 
country for the purpose of granting new concessions as compensa-
tion for such action in order to maintain the general level of 
reciprocal and mutually advantageous concessions. 
SEC. 1379. CONSULTATIONS. 
(a) ADVICE FROM DEPARTMENTS AND AGENCIES.—Prior to taking 
any action under this part, the President shall seek information and 
advice from the interagency trade organization established under 
section 242(a) of the Trade Expansion Act of 1962 (19 U.S.C. 1872). 
(b) ADVICE FROM THE PRIVATE SECTOR.—Before— 
(1) the Trade Representative concludes the investigation con-
ducted under section 1374(a) or takes action under section 
1374(c), 
(2) the President establishes specific n^otiating objectives 
under section 1375(b) with respect to any foreign country, or 
(3) the President takes action under section 1376, 
the Trade Representative shall provide an opportunity for the 
presentation of views by any interested party with respect to such 
investigation, objectives, or action, including appropriate commit-
tees established pursuant to section 135 of the Trade Act of 1974 (19 
U.S.C. 2155). 
(c) (IJONSULTATIONS WITH CONGRESS AND OFFICIAL ADVISORS.—For 
purposes of conducting negotiations under section 1375(a), the Trade 
Representative shall keep appropriate committees of the Congress, 
as well as appropriate committees established pursuant to section 
135 of the Trade Act of 1974, currently informed with respect to— 
(1) the negotiating priorities and objectives for each priority 
foreign country; 
(2) the assessment of negotiating prospects, both bilateral and 
multilateral; and 
(3) any United States concessions which might be included in 
negotiations to achieve the objectives described in subsections 
(c) and (d) of section 1375. 
(d) MODIFICATION OF SPECIFIC NEGOTIATING OBJECTIVES.—Before President of U.S 
the President takes any action under section 1375(bX2XA) to refine 
or modify specific negotiating objectives, the President shall consult 
with the C!ongress and with members of the industry, and represent-
atives of labor, affected by the proposed refinement or modification. 
SEC. 1380. SUBMISSION OF DATA; ACTION TO ENSURE COMPLIANCE. 
19 USC 3109. 
(a) SUBMISSION OF DATA.—The Federal Communications Commis-
sion (hereafter in this section referred to as the "Commission") shall 
periodically submit to appropriate committees of the House of Rep-
resentatives and of the Senate any data collected and otherwise 
made public under Report No. DC-1105, "Information Reporting 
Requirements Established for Common Carriers", adopted Febru-
ary 25, 1988, relating to FCC Docket No. 86-494, adopted December 
23,1987. 
(b) ACTION TO ENSURE COMPLIANCE.— 
102 STAT. 1224 
PUBLIC LAW 100-418—AUG. 23, 1988 
Reports. 
Public 
information. 
19 use 3110. 
19 use 3111. 
(IXA) Any product of a foreign country that is subject to 
registration or approval by the Commission may be entered 
only if— 
(i) such product conforms with all applicable rules and 
regulations of the Commission, and 
(ii) the information which is required on Federal Commu-
nications Commission Form 740 on the date of enactment of 
this Act is provided to the appropriate customs officer at 
the time of such entry in such form and manner as the 
Secretary of the Treasury may prescribe. 
(B) For purposes of this paragraph, the term "entered" means 
entered, or withdrawn from warehouse for consumption, in the 
customs territory of the United States. 
(2) The Commission, the Secretary of Commerce, and the 
Trade Representative shall provide such assistance in the 
enforcement of paragraph (1) as the Secretary of the Treasury 
may request. 
(3) The Secretary of the Treasury shall compile the informa-
tion collected under paragraph (IXAXii) into a summary and 
shall annually submit such summary to the Congress until the 
authority to negotiate trade agreements under part 1 of subtitle 
A expires. Such information shall also be made available to the 
public. 
SEC. 1381. STUDY ON TELECOMMUNICATIONS COMPETITIVENESS IN THE 
UNITED STATES. 
(a) IN GENERAL.—The Secretary of Commerce, in consultation 
with the Federal Communications Commission and the United 
States Trade Representative, shall conduct a study of the competi-
tiveness of the United States telecommunications industry and the 
effects of foreign telecommunications policies and practices on such 
industry in order to assist the Congress and the President in deter-
mining what actions might be necessary to preserve the competitive-
ness of the United States telecommunications industry. 
(b) PuBuc COMMENT.—The Secretary of Commerce may, as 
appropriate, provide notice and reasonable opportunity for public 
comment as part of the study conducted under subsection (a). 
(c) REPORT.—The Secretary of Commerce shall, by no later than 
the date that is 1 year after the date of enactment of this Act, 
submit to the Congress and the President a report on the findings 
and recommendations reached by the Secretary of Commerce as a 
result of the study conducted under subsection (a). Such report shall 
be referred to the appropriate committees of the House of 
Representatives and of the Senate. 
SEC. 1382. INTERNATIONAL OBLIGATIONS. 
Nothing in this part may be construed to require actions inconsist-
ent with the international obligations of the United States, includ-
ing the General Agreement on Tariffs and Trade. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1225 
Subtitle D—Adjustment to Import Competition 
PART 1—POSITIVE ADJUSTMENT BY INDUSTRIES 
INJURED BY IMPORTS 
SEC. 1401. POSITIVE ADJUSTMENT BY INDUSTRIES INJURED BY IMPORTS. 
(a) IN GENERAL.—Chapter 1 of title II of the Trade Act of 1974 (19 
U.S.C. 2251-2253) is amended to read as follows: 
"CHAPTER 1—POSITIVE ADJUSTMENT BY INDUSTRIES 
INJURED BY IMPORTS 
"SEC. 201. ACTION TO FACILITATE POSITIVE ADJUSTMENT TO IMPORT 19 USC 2251. 
COMPETITION. 
"(a) PRESIDENTIAL ACTION.—If the United States International 
Trade Commission (hereinafter referred to in this chapter as the 
'Commission') determines under section 202(b) that an article is 
being imported into the United States in such increased quantities 
as to be a substantial cause of serious injury, or the threat thereof, 
to the domestic industry producing an article like or directly 
competitive with the imported article, the President, in accordance 
with this chapter, shall take all appropriate and feasible action 
within his power which the President determines will facilitate 
efforts by the domestic industry to make a positive adjustment to 
import competition and provide greater economic and social benefits 
than costs. 
"(b) POSITIVE ADJUSTMENT TO IMPORT COMPETITION.— 
"(1) For purposes of this chapter, a positive adjustment to 
import competition occurs when— 
"(A) the domestic industry— 
"(i) is able to compete successfully with imports after 
actions taken under section 204 terminate, or 
"(ii) the domestic industry experiences an orderly 
transfer of resources to other productive pursuits; and 
"(B) dislocated workers in the industry experience an 
orderly transition to productive pursuits. 
"(2) The domestic industry may be considered to have made a 
positive adjustment to import competition even though the 
industry is not of the same size and composition as the industry 
at the time the investigation was initiated under section 202(b). 
"SEC. 202. INVESTIGATIONS, 
DETERMINATIONS, 
AND 
RECOMMENDA- 19 USC 2252. 
TIONS BY COMMISSION. 
"(a) PETITIONS AND ADJUSTMENT PLANS.— 
"(1) A petition requesting action under this chapter for the 
purpose of facilitating positive adjustment to import competi-
tion may be filed with the Commission by an entity, including a 
trade association, firm, certified or recognized union, or group of 
workers, which is representative of an industry. 
"(2) A petition under pa,ragraph (1)— 
"(A) shall include a statement describing the specific 
purposes for which action is being sought, which may in-
clude facilitating the orderly transfer of resources to more 
productive pursuits, enhancing competitiveness, or other 
means of adjustment to new conditions of competition; and 
102 STAT. 1226 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(B) may— 
"(i) subject to subsection (dXlXCXi), request provi-
sional relief under subsection (dXD; or 
"(ii) request, or at any time before the 150th day after 
the date of filing be amended to request, provisional 
relief under subsection (dX2). 
"(3) Whenever a petition is filed under paragraph (1), the 
Commission shall promptly transmit copies of the petition to 
the Office of the United States Trade Representative and other 
Federal agencies directly concerned. 
"(4) A petitioner under paragraph (1) may submit to the 
Commission and the United States Trade Representative (here-
after in this chapter referred to as the 'Trade Representative'), 
either with the petition, or at any time within 120 days after the 
date of filing of the petition, a plan to facilitate positive adjust-
ment to import competition. 
"(5XA) Before submitting an adjustment plan under para-
graph (4), the petitioner and other entities referred to in 
paragraph (1) that wish to participate may consult with the 
Trade Representative and the officers and employees of any 
Federal agency that is considered appropriate by the Trade 
Representative, for purposes of evaluating the adequacy of the 
proposals being considered for inclusion in the plan in relation 
to specific actions that may be taken under this chapter. 
Federal 
"(B) A request for any consultation under subpars^aph (A) 
Register, 
must be made to the Trade Representative. Upon receiving such 
publication. 
^ request, the Trade Representative shall confer with the peti-
tioner and provide such assistance, including publication of 
appropriate notice in the Federal Register, as may be prac-
ticable in obtaining other participants in the consultation. No 
consultation may occur under subparagraph (A) unless the 
Trade Representative, or his del^ate, is in attendance. 
"(6XA) In the course of any investigation under subsection (b), 
the (Jonunission shall seek information (on a confidential basis, 
to the extent appropriate) on actions being taken, or planned* to 
be taken, or both, by firms and workers in the industry to make 
a positive adjustment to import competition. 
"(B) Regardless whether an adjustment plan is submitted 
under paragraph (4) by the petitioner, if the Commission makes 
an affirmative determination under subsection (b), any— 
"(i) firm in the domestic industry; 
"(ii) certified or recc^nized union or group of workers in 
the domestic industry; 
"(iii) State or local community; 
"(iv) trade association representing the domestic indus-
try; or 
"(v) any other person or group of persons, 
may, individually, submit to the (Dommission commitments 
regarding actions such persons and entities intend to take to 
facilitate positive adjustment to import competition. 
"(7) Nothing in paragraphs (5) and (6) may be construed to 
provide immunity luider the antitrust laws. 
"(b) INVESTIGATIONS AND DETERMINATIONS BY (IIOMMISSIGN.— 
"(IXA) Upon the filing of a petition under subsection (b), the 
request of the President or the Trade Representative, the reso-
lution of either the Committee on Ways and Means of the House 
of Representatives or the dlommittee on Finance of the Senate, 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1227 
or on its own motion, the Commission shall promptly make an 
investigation to determine whether an article is being imported 
into the United States in such incre£ised quantities as to be a 
substantial cause of serious injury, or the threat thereof, to the 
domestic industry producing an article like or directly competi-
tive with the imported article. 
"(B) For purposes of this section, the term 'substantial cause' 
means a cause which is important and not less than any other 
cause. 
"(2XA) Except £is provided in subparagraph (B), the Commis-
sion shall make the determination under paragraph (1) within 
120 days after the date on which the petition is filed, the request 
or resolution is received, or the motion is adopted, as the case 
maybe. 
"(B) If before the 100th day after a petition is filed under 
subsection (aXD the Commission determines that the investiga-
tion is extraordinarily complicated, the Commission shall make 
the determination under paragraph (1) within 150 days after the 
date referred to in subparagraph (A). 
"(3XA) If the Commission makes an affirmative determination 
under paragraph (1) and the petitioner alleges the existence of 
critical circumstances, the Commission shall make a determina-
tion regarding such allegation— 
"(i) on or before the 120th day after the day on which the 
petition was filed, if such allegation was included in the 
petition on or before the 90th day after such filing date; or 
"(ii) on or before the date the report required under 
subsection (f) regarding the determination is submitted to 
the President, if such allegation was included in the peti-
tion after the 90th day, and on or before the 150th day, 
after such filing date. 
"(B) For purposes of this paragraph and subsection (dX2), 
critical circumstances exist if a substantial increase in imports 
(either actual or relative to domestic production) over a rel-
atively short period of time has led to circumstances in which a 
delay in taking action under this chapter would cause harm 
that would significantly impair the effectiveness of such action. 
"(4) In the course of any proceeding under this subsection, the 
Commission shall, after reasonable notice, hold public hearings 
and shall grfford interested parties and consumers an oppor-
tunity to be present, to present evidence, to comment on the 
adjustment plan, if any, submitted under subsection (a), and to 
be heard at such hearings. 
'(c) FACTORS APPUED IN MAKING DETERMINATIONS.— 
"(1) In making determinations under subsection (b), the 
Commission shall take into account all economic factors which 
it considers relevant, including 0)ut not limited to)— 
"(A) with respect to serious injury— 
"(i) the significant idling of productive facilities in 
the domestic industry, 
"(ii) the inability of a significant number of firms to 
carry out domestic production operations at a reason-
able level of profit, and 
"(iii) significant unemplo3rment or underemplojmient 
within the domestic industry; 
"(B) with respect to threat of serious injury— 
Employment 
and 
unemplojntnent. 
102 STAT. 1228 
PUBLIC LAW 100-418—AUG. 23, 1988 
Wages. 
"(i) a decline in sales or market share, a higher and 
growing inventory (whether maintained by domestic 
producers, importers, wholesalers, or retailers), and a 
downward trend in production, profits, wages, or 
employment (or increasing underemplojmient) in the 
domestic industry, 
"(ii) the extent to which firms in the domestic indus-
try are unable to generate adequate capital to finance 
the modernization of their domestic plants and equip-
ment, or are unable to maintain existing levels of 
expenditures for research and development, 
'(iii) the extent to which the United States market is 
the focal point for the diversion of exports of the article 
concerned by reason of restraints on exports of such 
article to, or on imports of such article into, third 
V
. 
country markets; and 
"(C) with respect to substantial cause, an increase in 
imports (either actual or relative to domestic production) 
and a decline in the proportion of the domestic market 
supplied by domestic producers. 
"(2) In making determinations under subsection (b), the 
Commission shall— 
"(A) consider the condition of the domestic industry over 
the course of the relevant business cycle, but may not 
aggregate the causes of declining demand associated with a 
recession or economic downturn in the United States econ-
omy into a single cause of serious injury or threat of injury; 
and 
"(B) examine factors other than imports which may be a 
cause of serious injury, or threat of serious injury, to the 
domestic industry. 
The Commission shall include the results of its examination 
under subparagraph (B) in the report submitted by the Commis-
sion to the President under subsection (e). 
"(3) The presence or absence of any factor which the (Ilommis-
sion is required to evaluate in subparagraphs (A) and (B) of 
paragraph (1) is not necessarily dispositive of whether an article 
is being imported into the United States in such increased 
quantities as to be a substantial cause of serious injury, or the 
threat thereof, to the domestic industry. 
"(4) For purposes of subsection (b), in determining the domes-
tic industry producing an article like or directly competitive 
with an imported article, the C!ommission— 
"(A) to the extent information is available, shall, in the 
case of a domestic producer which also imports, treat as 
part of such domestic industry only its domestic production; 
"(B) may, in the case of a domestic producer which 
produces more than one article, treat as part of such domes-
tic industry only that portion or subdivision of the producer 
which produces the like or directly competitive article; and 
"(C) may, in the case of one or more domestic producers 
which produce a like or directly competitive article in a 
- 
major geographic area of the United States and whose 
production facilities in such area for such article constitute 
a substantial portion of the domestic industry in the United 
States and primarily serve the market in such area, and 
where the imports are concentrated in such area, treat as 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1229 
such domestic industry only that s^ment of the production 
located in such area. 
"(5) In the course of any proceeding under this subsection, the 
Commission shall investigate any factor which in its judgment 
may be contributing to increased imports of the article under 
investigation. Whenever in the course of its investigation the 
Commission has reason to believe that the increased imports 
are attributable in part to circumstances which come within the 
purview of subtitles A and B of title VH or section 337 of the 
Tariff Act of 1930, or other remedial provisions of law, the 
Commission shall promptly notify the appropriate agency so 
that such action may be taken as is otherwise authorized by 
such provisions of law. 
"(6) For purposes of this subsection: 
"(A) The term 'domestic industry* includes producers 
located in the United States insular possession. 
"(B) The term 'significant idling of productive facilities' 
includes the closing of plants or the imderutilization of 
production capacity. 
*(d) PROVISIONAL RrajEF.— 
"(IXA) An entity representing a domestic industry that pro-
duces a perishable agricultural product that is like or directly 
competitive with an imported perishable agricultural product 
may file a request with the Trade Representative for the mon-
itoring of imports of that product under subparagraph (B). 
Within 21 days after receiving the request, the Trade Rep-
resentative shall determine if— 
"(i) the imported product is a perishable agricultural 
product; and 
"(ii) there is a reasonable indication that such product is 
being imported into the United States in such increased 
qusmtities as to be, or likely to be, a substantial cause of 
serious injury, or the threat thereof, to such domestic 
industry. 
"(B) If the determinations under subparagraph (A) (i) and (ii) 
are affirmative, the Trade Representative shall request, under 
section 332(g) of the Tariff Act of 1930, the Commission to 
monitor and investigate the imports concerned for a period not 
to exceed 2 years. The monitoring and investigation may in-
clude the collection and analjrsis of information that would 
expedite an investigation under subsection (b). 
XQ If a petition filed under subsection (a)— 
"(i) alleges injury from imports of a perishable agricul-
tural product that has been, on the date the allegation is 
included in the petition, subject to monitoring by the 
Commission under paragraph (2) for not less than 90 daj^; 
and 
"(ii) requests that provisional relief be provided imder 
this subsection with respect to such imports; 
the Conmdssion shall, not later than the 21st day after the day 
on which the request was filed, make a determination, on the 
basis of available information, whether increased imports 
(either actual or relative to domestic production) of the perish-
able agricultural product are a substantial cause of serious 
injury, or the threat thereof, to the domestic industry producing 
a like or directly competitive perishable product, and whether 
either— 
Agriculture and 
agricultural 
commodities. 
19-194 0-91—Part 2 
8 : QL J 
102 STAT. 1230 
PUBLIC LAW 100-418—AUG. 23, 1988 
Reports. 
President of U.S. 
Reports. 
President of U.S. 
President of U.S. 
"(I) the serious injury is likely to be difficult to repair by 
reason of perishability of the like or directly competitive 
agricultural product; or 
"OD the serious injury cannot be timely prevented 
through investigation under subsection (b) and action under 
section 203. 
"(D) At the request of the Commission, the Secretary of 
Agriculture shall promptly provide to the Commission any 
relevant information that the Department of Agriculture may 
have for purposes of making determinations and findings under 
this subsection. 
"(E) Whenever the (Commission makes an affirmative prelimi-
nary determination under subparagraph (C), the (Commission 
shall find the amount or extent of provisional relief that is 
necessary to prevent or remedy the serious injury or threat 
thereof. In carrying out this subparagraph, the (Commission 
shall give preference to increasing or imposing a duty on im-
ports, if such form of relief is feasible and would prevent or 
remedy the serious injury or threat thereof. 
"(F) The Commission shall immediately report to the Presi-
dent its determination under subparagraph (C) and, if the deter-
mination is affirmative, the finding under subparagraph (E). 
"(G) Within 7 days after receiving a report from the (Commis-
sion under subparagraph (F) containing an affirmative deter-
mination, the President, if he considers provisional relief to be 
warranted and after taking into account the finding of the 
(Commission under subparagraph (E), shall proclaim such provi-
sional relief that the President considers necessary to prevent 
or remedy the serious injury or threat thereof. 
"(2XA) The Commission shall, at the same time it makes an 
affirmative determination under subsection (bX3XA) r^arding 
the existence of critical circumstances, find the amount or 
extent of provisioned relief that is appropriate to address such 
critical circimistances. The (Commission shall immediately 
report to the President each such affirmative determination 
and finding. 
"(B) After receiving a report from the Commission under 
subparagraph (A), the President shall, within 7 days after the 
day on which the report is received and after taking into 
account the finding of the (Commission luider subparagraph (A), 
proclaim such provisional relief, if any, that the President 
considers appropriate to address the critical circumstances. 
"(3) If provisional relief is proclaimed under paragraph (IXG) 
or (2)(B) in the form of an increase, or the imposition of, a duty, 
the President shall order the suspension of liquidation of sdl 
imported articles subject to the affirmative determination 
under paragraph (IXC) or subsection (bXD, as the case may be, 
that are entered, or withdrawn from warehouse for consump-
tion, on or after the date of the determination. 
"(4XA) Any provisional relief implemented under this subsec-
tion with respect to an imported article shall terminate on the 
day on which— 
"(i) if such relief was proclaimed under paragraph dXG), 
the (Commission makes a n^ative determination under 
section 203(a) regarding injury or the threat thereof by 
imports of such article; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1231 
"(ii) action described in section 203(aX3) (A) or (C) takes 
effect under section 203 with respect to such article; 
"(iii) a decision by the President not to take any action 
under section 203(a) with respect to such article becomes 
final; or 
"(iv) whenever the President determines that, because of 
changed circumstances, such relief is no longer warranted. 
"(B) Any suspension of liquidation ordered under paragraph 
(3) with respect to an imported article shall terminate on the 
day on which provisional relief is terminated under subpara-
graph (A) with respect to the article. 
"(C) If an increase in, or the imposition of, a duty that is 
proclaimed under section 203 on an imported article is different 
from a duty increase or imposition that was proclsdmed for such 
an article under this section, then the entry of any such article 
for which liquidation was suspended under paragraph (3) shall 
be liquidated at whichever of such rates of duty is lower. 
"(D) If provisional relief in the form of an increase in, or the 
imposition of, a duty is proclaimed under this section with 
respect to an imported article and neither a duty increase nor a 
duty imposition is proclaimed under section 203 regarding such 
article, the entry of any such article for which liquidation was 
suspended under paragraph (3) may be liquidated at the rate of 
duty that applied before provisional relief was provided. 
"(5) For purposes of this subsection: 
"(A) A perishable agricultural product is any agricultural 
article, including livestock, regarding which the Trade Rep-
resentative considers action under this section to be appro-
priate after taking into account— 
"(i) whether the article has— 
"(I) a short shelf life, 
"(II) a short growing season, or 
"(III) a short marketing period, 
"(ii) whether the article is treated as a perishable 
product under any other Federal law or regulation; and 
"(iii) any other factor considered appropriate by the 
Trade Representative. 
The presence or absence of any factor which the Trade 
Representative is required to take into account under 
clause (i), (ii), or (iii) is not necessarily dispositive of whether 
an article is a perishable agricultural product. 
"(B) The term 'provisional relief means— 
"(i) any increase in, or imposition of, any duty; 
"(ii) any modification or imposition of any quan-
titative restriction on the importation of an article into 
the United States; or 
"(iii) any combination of actions under clauses (i) and 
(ii). 
'(e) COMMISSION RECOMMENDATIONS.— 
"(1) If the Commission makes an affirmative determination 
under subsection Ot>Xl), the Commission shall also recommend 
the action that would address the serious injury, or threat 
thereof, to the domestic industry and be most effective in 
facilitating the efforts of the domestic industry to make a 
positive adjustment to import competition. 
"(2) The Commission is authorized to recommend under para-
graph (1)— 
102 STAT. 1232 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(A) an increase in, or the imposition of, any duty on the 
imported article; 
(B) a tariff-rate quota on the article; 
"(C) a modification or imposition of any quantitative 
restriction on the importation of the article into the United 
States; 
"(D) one or more appropriate adjustment measures, 
including the provision of trade adjustment assistance 
under chapter 2; or 
"(E) any combination of the actions described in subpara-
graphs (A) through (D). 
"(3) The Commission shall specify the type, amount, and 
duration of the action recommended by it under paragraph (1). 
• The limitations set forth in section 203(e) are applicable to the 
action recommended by the Commission. 
"(4) In addition to the recommendation made under para-
graph (1), the Commission may also recommend that the 
President— 
"(A) initiate international negotiations to address the 
underlying cause of the increase in imports of the article or 
otherwise to alleviate the injury or threat; or 
"(B) implement any other action authorized under law 
that is likely to facilitate positive adjustment to import 
competition. 
"(5) For purposes of making its recommendation under this 
subsection, the Commission shall— 
"(A) after reasonable notice, hold a public hearing at 
which all interested parties shall be provided an oppor-
tunity to present testimony and evidence; and 
"(B) take into account— 
"(i) the form and amount of action described in para-
graph (2) (A), (B), and (C) that would prevent or remedy 
the injury of threat thereof, 
"(ii) the objectives and actions specified in the adjust-
ment plan, if any, submitted under subsection (aX4), 
"(iii) any individusd commitment that was submitted 
to the Commission under subsection (aX6), 
"(iv) any information available to the Commission 
concerning the conditions of competition in domestic 
and world markets, and likely developments affecting 
such conditions during the period for which action is 
being requested, and 
"(v) whether international negotiations may be 
constructive to address the injury or threat thereof or 
to facilitate adjustment. 
"(6) Only those inembers of the Commission who agreed to the 
affirmative determination under subsection (b) are eligible to 
vote on the recommendation required to be made under para-
graph (1) or that may be made under paragraph (3). Members of 
the Commission who did not agree to the affirmative determina-
tion may submit, in the report required under subsection (f), 
separate views regarding what action, if any, should be taken 
under section 203. 
"(f) REPORT BY (DOMMISSION.— 
"(1) The Commission shall submit to the President a report on 
each investigation undertaken under subsection (b). The report 
shall be submitted at the earliest practicable time, but not later 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1233 
than 180 days after the date on which the petition is filed, the 
request or resolution is received, or the motion is adopted, as 
the case may be. 
"(2) The Commission shall include in the report required 
under paragraph (1) the following: 
"(A) The determination made under subsection (b) and an 
explanation of the basis for the determination. 
"(B) If the determination under subsection Ot)) is affirma-
tive, the recommendations for action made under subsec-
tion (e) and an explanation of the basis for each 
recommendation. 
"(C) Any dissenting or separate views by members of the 
Commission regarding the determination and any rec-
ommendation referred to in subparagraphs (A) and (B). 
"(D) The findings required to be included in the report 
under subsection (cX2). 
"(E) A copy of the adjustment plan, if any, submitted 
under section 201(bX4). 
"(F) Commitments submitted, and information obtained, 
by the Commission regarding steps that firms and workers 
in the domestic industry are taking, or plan to take, to 
facilitate positive adjustment to import competition. 
"(G) A description of— 
"(i) the short- and long-term effects that implementa-
tion of the action recommended under subection (e) is 
likely to have on the petitioning domestic industry, on 
other domestic industries, and on consumers, and 
"(ii) the short- and long-term effects of not taking the 
recommended action on the petitioning domestic indus-
try, its workers and the conununities where production 
facilities of such industry is located, and on other 
domestic industries. 
"(3) The Commission, after submitting a report to the Presi-
dent under paragraph (1), shall promptly make it available to 
the public (with the exception of the confidential information 
obtained under section 202(aX6)(B) and any other information 
which the dlommission determines to be confidential) and cause 
a sunmiary thereof to be published in the Federal Roister. 
"(g) EXPEDITED CONSIDERATION OP ADJUSTMENT ASSISTANCE PETI-
noNS.—If the C>)mmission makes an affirmative determination 
under subsection (bXD, the Ck>mmission shall promptly notify the 
Secretary of Labor and the Secretary of Commerce of the determina-
tion. After receiving such notification— 
"(1) the Secretary of Labor shall give expedited consideration 
to petitions by workers in the domestic industry for certification 
for eligibility to apply for adjustment assistance under chapter 
2; and 
"(2) the Secretary of Commerce shall give expedited consider-
ation to petitions by firms in the domestic industry for certifi-
cation of eligibility to apply for adjustment assistance under 
chapter 3. 
"(h) LJMITATIONS ON INVESTIGATIONS.— 
"(1) Except for good cause determined by the Commission to 
exist, no investigation for the purposes of this section shall be 
made with respect to the same subject matter as a previous 
investigation under this chapter, unless 1 year has elapsed since 
Public 
information. 
Federal 
Register, 
publication. 
102 STAT. 1234 
PUBLIC LAW 100-418—AUG. 23, 1988 
the Commission made its report to the President of the results 
of such previous investigation. 
"(2) If an article was the subject of an investigation under this 
section that resulted in any action described in section 203(aX3) 
(A), (B), (C), or (E) being taken under section 203, no other 
investigation under this chapter may be initiated with respect 
to such article while such action is in effect or during the period 
beginning on the date on which such action terminates that is 
equal in duration to the period during which such action w£is in 
effect. 
19 use 2253. 
"SEC. 203. ACTION BY PRESIDENT AFTER DETERMINATION OF IMPORT 
INJURY. 
"(a) IN GENERAL.— 
"(1)(A) After receiving a report under section 202(f) containing 
an affirmative finding regarding serious injury, or the threat 
thereof, to a domestic industry, the President shall take all 
appropriate and feasible action within his power which the 
President determines will facilitate efforts by the domestic 
industry to make a positive adjustment to import competition 
and provide greater economic and social benefits than costs. 
"(B) The action taken by the President under subparagraph 
(A) shall be to such extent, and for such duration, subject to 
subsection (eXl), that the President determines to be appro-
priate and feeisible under such subparagraph. 
"(C) The interagency trade organization established under 
section 242(a) of the Trade Expansion Act of 1962 shall, with 
respect to each affirmative determination reported under sec-
tion 202(f), make a recommendation to the President as to what 
action the President should take under subparagraph (A). 
"(2) In determining what action to take under paragraph (1), 
the President shall take into account— 
"(A) the recommendation and report of the Commission; 
"(B) the extent to which workers and firms in the domes-
tic industry are— 
"(i) benefitting from adjustment assistance and other 
manpower programs, and 
"(ii) engaged in worker retraining efforts; 
"(C) the efforts being made, or to be implemented, by the 
domestic industry (including the efforts included in any 
adjustment plan or commitment submitted to the Commis-
sion under section 201(b)) to make a positive adjustment to 
import competition; 
"(D) the probable effectiveness of the actions authorized 
under paragraph (3) to facilitate positive adjustment to 
import competition; 
"(E) the short- and long-term economic and social costs of 
the actions authorized under paragraph (3) relative to their 
short- and long-term economic and social benefits and other 
considerations relative to the position of the domestic in-
dustry in the United States economy; 
"(F) other factors related to the national economic in-
terest of the United States, including, but not limited to— 
"(i) the economic and social costs which would be 
incurred by taxpayers, communities, and workers if 
import relief were not provided under this chapter. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1235 
"(ii) the effect of the implementation of actions under 
this section on consumers and on competition in domes- 
7 -
tic markets for articles, and 
"(iii) the impact on United States industries and 
firms as a result of international obligations regarding 
compensation; 
"(G) the extent to which there is diversion of foreign 
exports to the United States market by reason of foreign 
restraints; 
"(H) the potential for circumvention of any action taken 
under this section; 
"(I) the national security interests of the United States; Defense and 
Qjl^ 
national 
"(J) the factors required to be considered by the Commis- ^
^
<
^
"
^
^
*
y 
sion under section 202(e)(5). 
"(3) The President may, for purposes of taking action under 
paragraph (1)— 
"(A) proclaim an increase in, or the imposition of, any 
duty on the imported article; 
"(B) proclaim a tariff-rate quota on the article; 
"(C) proclaim a modification or imposition of any quan-
titative restriction on the importation of the article into the 
United States; 
"(D) implement one or more appropriate adjustment 
measures, including the provision of trade adjustment 
assistance under chapter 2; 
"(E) negotiate, conclude, and carry out orderly marketing 
agreements with foreign countries limiting the export from 
foreign countries and the import into the United States of 
such article; 
"(F) proclaim procedures necessary to allocate among 
importers by the auction of import licenses quantities of the 
article that are permitted to be imported into the United 
States; 
"(G) initiate international negotiations to address the 
underlying cause of the increase in imports of the article or 
otherwise to alleviate the injury or threat thereof; 
"(H) submit to Congress legislative proposals to facilitate 
the efforts of the domestic industry to make a positive 
adjustment to import competition; 
'(I) take any other action which may be taken by the 
President under the authority of law and which the Presi-
dent considers appropriate and feasible for purposes of 
paragraph (1); and 
"(J) take any combination of actions listed in subpara-
graphs (A) through (I). 
"(4) The President shall take action under paragraph (1) 
within 60 days after receiving a report from the Commission 
containing an affirmative determination under section 202(bXl) 
(or a determination under such section which he considers to be 
an affirmative determination by reason of section 830(d) of the 
Tariff Act of 1930); except that if a supplemental report is 
requested under paragraph (5), the President shall take action 
under paragraph (1) within 30 days after the supplemental 
report is received. 
'(5) The President may, within 15 days after the date on 
which he receives a report from the Commission containing an 
102 STAT. 1236 
PUBLIC LAW 100-418—AUG. 23, 1988 
affirmative determination under section 202(bXl), request addi^ 
Reports. 
tional information from the Commission. The Commissicm shall» 
as soon as practicable but in no event more than 30 days after 
the date on which it receives the President's request, furnish 
additional information with respect to the industry in a supple-
mental report. 
"0)) REPORTS TO CONGRESS.— 
"(1) On the day the President takes action under subsection 
(aXl), the President shall transmit to Congress a document 
desa-ibing the action and the reasons for taking the action. If 
the action taken by the President differs from the action re-
quired to be recommended by the Conmiission under section 
202(eXl), the President shall state in detail the reasons for the 
difference. 
"(2) On the day on which the President decides that there is 
no appropriate and feasible action to take under subsection 
(aXD with respect to a domestic industry, the President shall 
transmit to Coi^ress a document that sets forth in detail the 
reasons for the decision. 
"(3) On the day on which the President takes any action 
under subsection (aXl) that is not reported under paragraph (1), 
the President shall transmit to Congress a document setting 
forth the action being taken and the reasons therefor. 
"(c) IMPLEMENTATION OP ACTION RECOMMENDED BY COMBOSSION.— 
If the President reports under subsection Ot>Xl) or (2) that— 
"(1) the action taken under subsection (aXD differs from the 
action recommended by the Commission under section 202(eXl); 
or 
"(2) no action will be taken under subsection (aXD with 
respect to the domestic industry; 
Effective date. 
the action reconmiended by the Commission shall take effect (as 
provided in subsection (cX2)) upon the enactment of a joint resolu-
tion described in section 152(aXlXA) within the 90-day period begin-
ning on the date on which the document referred to in subsection 
(bXl) or (2) is transmitted to the Coi^ress. 
"(d) TDUE FOR TAKING EFFECT OF CERTAIN RELIEF.— 
"(1) Ebccept as provided in paragraph (2), any action described 
in subsection (aX3XA), (B), or (C), that is taken under subsection 
(aXD shall take effect within 15 days after the day on which the 
President proclaims the action, unless the President announces, 
on the date he decides to take such action, his intention to 
n^otiate one or more orderly marketing agreements in which 
case the action under subsection (aX3XA), (B), or iO shall be 
proclaimed and take effect within 90 days after the date of such 
decision. 
"(2) If the contingency set forth in subsection (c) occurs, the 
President shall, within 30 days after the date of the enactment 
of the joint resolution referred to in such subsection, proclaim 
the action recommended by the Commission under section 
202(eXl). 
"(e) LIMITATIONS ON ACTIONS.— 
"(IXA) The duration of the period in which action taken 
under this section may be in effect shall not exceed 8 years. 
"(B) If the initial effective period for action taken under this 
section is less than 8 years, the President ma^ extend the 
effective period once, but the aggregate of the initial period and 
M the extension may not exceed 8 years. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1237 
"(2) Action may be taken under subsection (aXlXA), (B), or (C) 
or under section 202(dX2XB) only to the extent the cumulative 
impact of such action does not exceed the amount necessary to 
prevent or remedy the serious injury or threat thereof. 
"(3) No action may be taken under this section which would 
increase a rate of duty to (or impose a rate) which is more than 
50 percent ad valorem above the rate (if any) existing at the 
time the action is taken. 
"(4) Any action taken under this section proclaiming a quan-
titative restriction shall permit the importation of a quantity or 
value of the article which is not less than the quantity or value 
of such article imported into the United States during the most 
recent period that is representative of imports of such article. 
"(5) To the extent feasible, an effective period of more than 3 
years for an action described in subsection (aX3XA), (B), or (C) 
shall be phased down during the period in which the action is 
taken, with the first reduction taking effect no later than the 
close of the day which is 3 years after the day on which such 
action first takes effect. 
"(6XA) The suspension, pursuant to any action taken under 
this section, of— 
"(i) item 806.30 or 807.00 of the Tariff Schedules of the 
United States with respect to an article; and 
"(ii) the designation of any article as an eligible article 
for purposes of title V; 
shall be treated as an increase in duty. 
"(B) No proclamation providing for a suspension referred to in 
subparagraph (A) with respect to any article may be made by 
the President, nor may any such suspension be recommended by 
the C!ommission under section 203(c), unless the Commission, in 
addition to making an affirmative determination under section 
202(bXl), determines in the course of its investigation under 
section 203(a) that the serious injury, or threat thereof, substan-
tially caused by imports to the domestic industry producing a 
like or directly competitive article results from, as the case may 
"(A) the application of item 806.30 or item 807.00; or 
"(B) the designation of the article as an eligible article for 
the purposes of title V. 
"(f) ORDERLY MARKETING AND OTHER AGREEMENTS.— 
"(1) If the President takes action under this section other 
than the implemention of orderly marketing agreements, the 
President may, after such action takes effect, negotiate orderly 
marketing agreements with foreign countries, and may, after 
such agreements take effect, suspend or terminate, in whole or 
in part, any action previously taken. 
* (2) If an orderly marketing agreement implemented under 
subsection (a) is not effective, the President may, consistent 
with the limitations contained in subsection (e), take additional 
action under subsection (a). 
"(g) REGULATIONS.— 
"(1) The President shall by regulation provide for the efficient 
and fair administration of all actions taken for the purpose of 
providing import relief under this chapter. 
"(2) In order to carry out an orderly marketing or other 
international agreement concluded under this chapter, the 
President may prescribe regulations governing the entry or 
102 STAT. 1238 
PUBLIC LAW 100-418—AUG. 23, 1988 
withdrawal from warehouse of articles covered by such agree-
ment. In addition, in order to carry out any orderly marketing 
agreement concluded under this chapter with one or more 
countries accounting for a major part of United States imports 
of the article covered by such agreements, including imports 
into a major gec^aphic area of the United States, the President 
may issue r^ulations governing the entry or withdrawal from 
warehouse of like articles which are the product of countries not 
parties to such agreement. 
"(3) Regulations prescribed under this subsection shall, to the 
extent practicable and consistent with efficient and fair 
administration, insure against inequitable sharing of imports by 
a relatively small number of the larger importers. 
19 use 2254. 
"SEC. 204. MONITORING, MODIFICATION, AND TERMINATION OF ACTION. 
"(a) MONITORING.— 
"(1) So long as any action taken under section 203 remains in 
effect, the Commission shall monitor developments with respect 
to the domestic industry, including the progress and specific 
efforts made by workers and firms in the domestic industry to 
make a positive adjustment to import competition. 
Reports. 
"(2) The Commission shall submit a report on the results of 
the monitoring under paragraph (1) to the President and to the 
Congress not later than— 
"(A) the 2nd-anniversary of the day on which the action 
under section 203 first took effect; and 
"(B) the last day of each 2-year period occurring after the 
2-year period referred to in subparagraph (A). 
"(3) In the course of preparing each report under paragraph 
(2), the Commission shall hold a hearing at which interested 
persons shall be given a reasonable opportunity to be present, to 
produce evidence, and to be heeird. 
"(4) Upon request of the President, the Commission shall 
advise the President of its judgment as to the probable economic 
effect on the industry concerned of any extension, reduction, 
modification, or termination of the action taken under section 
203 which is under consideration. 
"(b) REDUCTION, MODIFICATION, AND TERMINATION OF ACTION.— 
"(1) Action taken under section 203 may be reduced, modified, 
or terminated by the President (but not before the President 
receives the report required under subsection (aX2XA)) if the 
President— 
"(A) after taking into account any report or advice 
submitted by the Commission under subsection (a) and after 
seeking the advice of the Secretary of Commerce and the 
Secretary of Labor, determines, on the basis that either— 
"(i) the domestic industry has not made adequate 
efforts to make a positive adjustment to import com-
petition, or 
"(ii) the effectiveness of the action taken under sec-
tion 203 has been impaired by changed economic 
circumstances, 
that changed circumstances warrant such reduction, or 
termination; or 
"(B) determines, after a majority of the representatives of 
the domestic industry submits to the President a petition 
requesting such reduction, modification, or termination on 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1239 
such basis, that the domestic industry has made a positive 
adjustment to import competition. 
"(2) Notwithstanding paragraph (1), the President is au- President of U.S. 
thorized to take such additional action under section 203 £is may 
be necessary to eliminate any circumvention of any action 
previously taken under such section. 
"(d) EVALUATION OF EFFECTIVENESS OF ACTION.— 
"(1) After any action taken under section 203 has terminated, 
the Commission shall evaluate the effectiveness of the actions 
in facilitating positive adjustment by the domestic industry to 
import competition, consistent with the reasons set out by the 
President in the report submitted to the Congress under section 
203(b). 
"(2) During the course of the evaluation conducted under 
paragraph (1), the Commission shall, after reasonable public 
notice, hold a hearing on the effectiveness of the action. All 
interested persons shall have the opportunity to attend such 
hearing and to present evidence or testimony at such hearing. 
"(3) A report on the evaluation made under paragraph (1) and Reports. 
the hearings held under paragraph (2) shall be submitted by the 
Commission to the President and to the Congress by no later 
than the 180th day after the day on which the actions taken 
under section 203 terminated. 
"(e) OTHER PROVISIONS.— 
"(1) Action by the President under this chapter may be taken 
without regard to the provisions of section 126(a) of this Act but 
only after consideration of the relation of such actions to the 
international obligations of the United States. 
"(2) If the C!!ommission treats as the domestic industry produc- President of U.S. 
tion located in a major geographic area of the United States 
under section 202(cX4XC), then the President shall take into 
account the geographic concentration of domestic production 
and of imports in that area in taking any action authorized 
under paragraph (1).". 
(b) CONFORMING AMENDMENTS.— 
(1) TRADE ACT OF 1974.—The Trade Act of 1974 is amended as 
follows: 
(A) section 123(bX4) is amended by striking out "import 19 USC 2133. 
relief under section 203(h)." and inserting "action under 
sections 203(e) and 204.". 
(B) Sections 224 and 264 (19 U.S.C. 2274 and 2354) are 
each amended— 
(i) by striking out "201" in subsection (a) and insert-
ing "202"; 
(ii) by striking out "201" in subsection (b) and insert-
ing "202(f)"; and 
such section 264 is amended by striking out "201(b)" in 
subsection (c) and inserting "202(b)". 
(2) CARIBBEAN BASIN ECONOMIC RECOVERY ACT.—Section 213 of 
the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703) is 
amended— 
(A) by striking out "proclaimed pursuant to section 203" 
i 
in subsection (eXD and inserting "provided under chapter 1 
of title II"; 
(B) by striking out "201(dXl)" in subsection (eX2) and 
inserting "202(f)'^; 
102 STAT. 1240 
PUBLIC LAW 100-418—AUG. 23, 1988 
(O by striking out "(a) and (c) of section 203" in subsec-
tion (eX3) and inserting "section 203"; 
(D) by amending sul^ection (eX4)— 
(i) by striking out "made under subsections (a) and (c) 
of section 203' and inserting "taken under section 
203"; 
(ii) by striking out "2010))" the first place it appears 
and inserting "202(b)"; and 
(iii) by striking out "section 2010)) of such Act" and 
inserting "such section"; 
(E) by amending subsection (eX5)— 
(i) by striking out "proclamation issued pursuant to 
section 203" in subparagraph (A) and inserting "action 
taken under section 203 ; and 
(ii) by amending subparagraph (B)— 
(I) by striMng out "to import relief and insert-
ing "to any such action", 
(II) by striking out "such import relief and 
inserting "such action", and 
(IQ) by striking out "subsections (h) and (i) of 
section 203" and inserting "section 203"; 
(F) by amending subsection (fK4)— 
(i) by amending subparagraph (A) by striking out 
"proclamation of import relief pursuant to section 
202(aXl)" and inserting "taking of action under section 
203", and 
(ii) by amending subparagraph (B) to read as follows: 
"(B) on the day a determination by the President not to take 
action under section 203 of such Act not to take action becomes 
final,". 
(3) TRADE AND TARIFF ACT OF I984.— 
(A) Title IV of the Tariff and Trade Act of 1984 is 
amended— 
19 use 2112 
(i) by amending section 403— 
"ote 
(I) by striking out "section 201(dXl)" in subsec-
tion (b) and inserting "section 202(f)", 
(ID by striking out "subsections (a) and (c) o f in 
subsections (c) and (d), 
an) by striking out "201(b)" in subsection (d) and 
inserting "2020)) , and 
(IV) by striking out "subsections (h) and (i) of 
section 203" in subsection (eX2) and inserting "sec-
tions 203 and 204"; and 
19 use 2112 
(ii) by amending section 404— 
"°** 
CI) by striking out "section 201" in subsection (a) 
and inserting "section 202(a)", 
(II) by striking out "proclamation of import relief 
under section 202(aXl)" in subsection (dXD and 
inserting "taking of action under section 203", and 
(ni) by amending subsection (dX2) to read as 
follows: 
"(2) on the day a determination of the President under section 
203 of such Act not to take action becomes final;". 
(4) TARIFF ACT OF 1930.—Section 330(d) of the Tariff Act of 
1930 (19 U.S.C. 1330(d)) is amended— 
(A) by amending paragraph (1) by striking out "201" and 
inserting "202"; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1241 
(B) by amending paragraph (2)— 
(i) by striking out "201" the first place it appears and 
inserting "202(b)", 
(iii) by striking out 
"201(dXl)" and 
inserting 
"202(eXl)", 
(iv) by striking out "sections 202 and 203" each place 
it appears and inserting "section 203", and 
(v) by striking out "2030^)" in subparagraph (B) and 
inserting "204(a)"; and 
(C) by striking out "203(cXl)" in paragraph (4) and insert-
ing "203(a)". 
(5) TABLE OF CONTENTS.—The entry for such chapter 1 in the 
table of contents to the Trade Act of 1974 is amended to read as 
follows: 
"CHAPTER 1—POSITIVE ADJUSTMENT BY INDUSTRIES INJURED BY IMPORTS 
"Sec. 201. Action to facilitate positive adjustment to import competition. 
"Sec. 202. Investigations, determinations, and recommendations by Commission. 
"Sec. 203. Action by President after determination of import injury. 
"Sec. 204. Monitoring, modification, and termination of action.". 
(c) EFFECTIVE DATE.—The amendments made by subsections (a) 19USC2251 
and (b) shall take effect on the date of the enactment of this Act £ind "°^®-
shall apply with respect to investigations initiated under chapter 1 
of title II of the Trade Act of 1974 on or after that date. Any petition 
filed under section 201 of such chapter before such date of enact-
ment, and with respect to which the United States International 
Trade Commission did not make a finding before such date with 
respect to serious injury or the threat thereof, may be withdrawn 
and refiled, without prejudice, by the petitioner under section 202(a) 
of such chapter (as amended by this section). 
PART 2—MARKET DISRUPTION 
SEC. 1411. MARKET DISRUPTION. 
(a) IN GENERAL.—Section 406 of the Trade Act of 1974 (19 U.S.C. 
2436) is amended as follows— 
(1) Subsection (b) is amended to read as follows: 
"(b) With respect to any affirmative determination of the Commis-
sion under subsection (a)— 
"(1) such determination shall be treated as an affirmative 
determination made under section 201(b) of this Act (as in effect 
on the day before the date of the enactment of the Omnibus 
Trade and Competitiveness Act of 1988); and 
"(2) sections 202 and 203 of this Act (as in effect on the day 
before the date of the enactment of such Act of 1988), rather 
than the provisions of chapter 1 of title 11 of this Act as 
amended by section 1401 of such Act of 1988, shall apply with 
respect to the taking of subsequent action, if any, by the Presi-
dent in response to such affirmative determination; 
except that— 
"(A) the President may take action under such sections 
202 and 203 only with respect to imports from the country 
or countries involved of the article with respect to which 
the afGrmative determination was made; and 
"(B) if such action consists of, or includes, an orderly 
marketing agreement, such agreement shall be entered into 
within 60 days after the import relief determination date.". 
102 STAT. 1242 
PUBLIC LAW 100-418—AUG. 23, 1988 
(2) Subsection (c) is amended by inserting "referred to in 
subsection (b)" after "sections 202 and 203". 
(3) Subsection (e)(2) is amended— 
(A) by inserting "(A)" after "(2)"; and 
(B) by inserting at the end thereof the following new 
subparagraphs: 
"(B) For purposes of subparagraph (A): 
"(i) Imports of an article shall be considered to be 
increasing rapidly if there has been a significant in-
crease in such imports (either actual or relative to 
domestic production) during a recent period of time. 
"(ii) The term 'significant cause' refers to a cause 
which contributes significantly to the material injury 
of the domestic industry, but need not be equal to or 
greater than any other cause. 
"(C) The Commission, in determining whether market 
disruption exists, shall consider, among other factors— 
"(i) the volume of imports of the merchandise which 
is the subject of the investigation; 
"(ii) the effect of imports of the merchandise on 
prices in the United States for like or directly competi-
tive articles; 
"(iii) the impact of imports of such merchandise on 
domestic producers of like or directly competitive arti-
cles; and 
"(iv) evidence of disruptive pricing practices, or other 
efforts to unfairly manage trade patterns.", 
(b) CONFORMING AMENDMENTS REQUIRED BY AMENDMENT OF CHAP-
19 use 2436. 
TER 1 OF TiTLE II OF THE TRADE ACT OF 1974.—Such section 406 is 
further amended— 
(1) by striking out "201(a)(1)" in subsection (a)(1) and subsec-
tion (d) and inserting "202(a)"; and 
(2) by striking out "subsections (a)(2), (b)(3), and (c) of section 
201" in subsection (a)(2) and inserting "subsections (a)(3), (b)(4), 
and (c)(4) of section 202". 
19 use 2436 
(c) EFFECTIVE DATE.—The amendments made by subsections (a) 
note. 
and (b) apply with respect to investigations initiated under section 
406(a) of the Trade Act of 1974 on or after the date of the enactment 
of this Act. 
PART 3—TRADE ADJUSTMENT ASSISTANCE 
Employment 
SEC. 1421. ELIGIBILITY OF WORKERS AND FIRMS FOR TRADE ADJUST-
and 
MENT ASSISTANCE. 
unemployment. 
/ \ /
-
% 
-HT 
/ - I T 
(a) OIL AND NATURAL GAS INDUSTRY.— 
(1)(A) Section 222 of the Trade Act of 1974 (19 U.S.C. 2272) is 
amended— 
(i) bv striking out "For purposes of paragraph (3), the 
term contributed importantly means a cause which is 
important, but not necessarily more important than any 
other cause.", 
(ii) by striking out "The Secretary" and inserting in lieu 
thereof "(a) The Secretary", and 
(iii) by adding at the end thereof the following new 
suljsection: 
"(b) For purposes of subsection (aX3)— 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1243 
"(1) The term 'contributed importantly' means a cause which 
is important but not necessarily more important than any other 
cause. 
"(2)(A) Any firm, or appropriate subdivision of a firm, that 
engages in exploration or drilling for oil or natural gas shall be 
considered to be a firm producing oil or natural gas. 
"(B) Any firm, or appropriate subdivision of a firm, that 
engages in exploration or drilling for oil or natural gas, or 
otherwise produces oil or natural gas, shall be considered to be 
producing articles directly competitive with imports of oil and 
with imports of natural gas.". 
(B) Notwithstanding section 223(b) of the Trade Act of 1974, or 19 USC 2272 
any other provision of law, any certification made under sub- "o^^. 
chapter A of chapter 2 of title II of such Act which— 
(i) is made with respect to a petition filed before the date 
that is 90 days after the date of enactment of this Act, and 
(ii) would not have been made if the amendments made 
by subparagraph (A) had not been enacted into law, 
shall apply to any worker whose most recent total or partial 
separation from the firm, or appropriate subdivision of the firm, 
: 
described in section 222(a) of such Act occurs after Septem-
* 
ber 30,1985. 
(2) Subsection (c) of section 251 of the Trade Act of 1974 (19 
U.S.C. 2341(c)) is amended to read as follows: 
"(cXD The Secretary shall certify a firm (including any agricul-
tural firm) as eligible to apply for adjustment assistance under this 
chapter if the Secretary determines— 
"(A) that a significant number or proportion of the workers in 
such firm have become totally or partially separated, or are 
threatened to become totally or partially separated, 
"(B) that— 
"(i) sales or production, or both, of such firm have de-
creased absolutely, or 
"(ii) sales or production, or both, of an article that ac-
counted for not less than 25 percent of the total production 
^, 
or sales of the firm during the 12-month period preceding 
the most recent 12-month period for which data are avail-
able have decreased absolutely, and 
"(C) increases of imports of articles like or directly competi-
tive with articles which are produced by such firm contributed 
importantly to such total or partial separation, or threat 
thereof, and to such decline in sales or production. 
"(2) For purposes of paragraph (IXC)— 
"(A) The term 'contributed importantly' means a cause which 
is important but not necessarily more important than any other 
cause. 
"(BXi) Any firm which engages in exploration or drilling for 
oil or natural gas shall be considered to be a firm producing oil 
or natural gas. 
"(ii) Any firm that engages in exploration or drilling for oil or 
natural gas, or otherwise produces oil or natural gas, shall be 
considered to be producing articles directly competitive with 
imports of oil and with imports of natural gas.", 
(b) APPUCATION TO ALL INDUSTRIES.— 
(1) Paragraph (3) of section 222(a) of the Trade Act of 1974 (19 
U.S.C. 2272(aX3)) is amended to read as follows: 
102 STAT. 1244 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(3) increases of imports of articles like or directly competi-
tive with articles— 
"(A) which are produced by such workers' firm or appro-
priate subdivision thereof, or 
"(B) for which such workers' firm, or appropriate subdivi-
sion thereof, provides essential goods or essential services, 
contributed importantly to such total or partial separation, or 
threat thereof, and to such decline in siales or production.". 
(2) Subparagraph (C) of section 251(cXl) of the Trade Act of 
1974 (19 U.S.C. 2341(cXlXC)) is amended to read as follows: 
"(C) increases of imports of articles like or directly competi-
tive with articles— 
"(i) which are produced by such firm, or 
"(ii) for which such firm provides essential goods or essen-
tial services, 
contributed importantly to such total or partial separation, or 
threat thereof, and to such decline in sales or production.". 
Employment 
SEC. 1422. NOTICE TO WORKERS OF BENEFITS UNDER TRADE ADJUST-
and 
MENT ASSISTANCE PROGRAM. 
unemployment. 
gection 225 of the Trade Act of 1974 (19 U.S.C. 2275) is amended— 
(1) by striking out "The Secretary" in the first sentence and 
inserting in lieu thereof "(a) The Secretary", and 
(2) by adding at the end thereof the following new subsection: 
Mail. 
"(bXl) "rtie Secretary shall provide written notice through the 
mail of the benefits available under this chapter to each worker 
whom the Secretary has reason to believe is covered by a certifi-
cation made under subchapter A of this chapter— 
"(A) at the time such certification is made, if the worker was 
partially or totally separated from the adversely affected 
employment before such certification, or 
(B) at the time of the total or partial separation of the 
worker fi-om the adversely affected employment, if subpara-
graph (A) does not apply. 
"(2) The Secretary shall publish notice of the benefits available 
under this chapter to workers covered by each certification made 
under subchapter A in newspapers of general circulation in the 
areas in which such workers reside.". 
Employment 
SEC. 1423. CASH ASSISTANCE FOR WORKERS. 
J 
„«^«,r.i«,rrv,or,t 
(») PARTicaPATiON IN TRAINING PROGRAM REQUIRED.— 
unemployment. 
^
^
^ Paragraph (5) of section 231(a) of the Trade Act of 1974 (19 
U.S.C. 2291(aX5)) is amended to read as follows: 
"(5) Such worker— 
"(A) is enrolled in a training program approved by the 
Secretary under section 236(a), 
"(B) bias, after the date on which the worker became 
totally separated, or partially separated, from the adversely 
affected employment, completed a training program ap-
proved by the Secretary under section 236(a), or 
"(C) has received a written statement certified under 
subsection (cXl) after the date described in subparagraph 
(B).". 
(2) Subsection (b) of section 231 of the Trade Act of 1974 (19 
U.S.C. 2291(b)) is amended to read as follows: 
"(bXDIf-
"(A) the Secretary determines that— 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1245 
"(i) the adversely affected worker— 
"(I) has failed to begin participation in the training 
progrsim the enrollment in which meets the require-
ment of subsection (aX5), or 
"(II) has ceased to participate in such training pro-
gram before completing such training program, and 
"(ii) there is no justifiable cause for such failure or ces-
sation, or 
"(B) the certification made with respect to such worker under 
subsection (cXl) is revoked under subsection (c)(2), 
no trade readjustment allowance may be paid to the adversely 
affected worker under this part for the week in which such failure, 
cessation, or revocation occurred, or any succeeding week, until the 
adversely affected worker begins or resumes participation in a 
training program approved under section 236(a). 
"(2) The provisions of subsection (a)(5) and paragraph (1) shall not 
apply with respect to any week of unemployment which begins— 
"(A) after the date that is 60 days after the date on which the 
petition that results in the certification that covers the worker 
is filed under section 221, and 
"(B) before the first week following the week in which such 
certification is made under subchapter (A).". 
(3) Subsection (c) of section 231 of the Trade Act of 1974 (19 
U.S.C. 2291(c)) is amended to read as follows: 
"(cXlXA) If the Secretary finds that it is not feasible or appro-
priate to approve a training program for a worker under section 
236(a), the Secretary shall submit to such worker a written state-
ment certifjdng such finding. 
"(B) If a State or State agency has an agreement with the Sec-
retary under section 239 and the State or State agency finds that it 
is not feasible or appropriate to approve a training program for a 
worker pursuant to the requirements of section 236(a), the State or 
State agency shall— 
"(i) submit to such worker a written statement certifying such 
finding, and 
"(ii) submit to the Secretary a written statement certifjring 
such finding and the recisons for such finding. 
"(2)(A) If, after submitting to a worker a written statement cer-
tified under paragraph (IXA), the Secretary finds that it is feasible 
or appropriate to approve a training program for such worker under 
section 236(a), the Secretary shall submit to such worker a written 
statement that revokes the certification made under paragraph 
(IXA) with respect to such worker. 
"(B) If, after submitting to a worker a written statement certified 
under paragraph (IXB), a State or State agency finds that it is 
feasible or appropriate to approve a training program for such 
worker pursuant to the requirements of section 236(a), the State or 
State agency shall submit to such worker, and to the Secretary, a 
written statement that revokes the certification made under para-
graph (IXB) with respect to such worker, 
"(3) The Secretary shall submit to the Finance Committee of the Reports, 
Senate and to the Ways and Means (Committee of the House of 
Representatives an annual report on the number of workers who 
received certifications under paragraph (1) during the preceding 
year and the number of certifications made under paragraph (1) that 
were revoked during the preceding year.". 
State and local 
governments. 
Contracts. 
102 STAT. 1246 
PUBLIC LAW 100-418—AUG. 23, 1988 
(4) Paragraph (3) of section 239(a) of the Trade Act of 1974 (19 
U.S.C. 2311(a)(3)) is amended to read as follows: 
"(3) will make any certifications required under section 
231(c)(2), and". 
(b) WEEKLY AMOUNTS OF READJUSTMENT ALLOWANCES.—Section 
232 of the Trade Act of 1974 (19 U.S.C. 2292) is amended— 
(1) by striking out ", including on-the-job training," in subsec-
tion (b), and 
(2) by striking out "under section 231(c) or 236(c)" in subsec-
tion (c) and inserting in lieu thereof "under section 231(b)". 
(c) LIMITATIONS.—Section 233 of the Trade Act of 1974 (19 U.S.C. 
2293) is amended— 
(1) by striking out "is approved" in subsection (a)(3XB) and 
inserting in lieu thereof "begins", 
(2) by striking out "engaged in such training and has not been 
determined under section 236(c) to be failing to make satisfac-
tory progress in the training" in subsection (a)(3) and inserting 
in lieu thereof "participating in such training", and 
(3) by adding at the end thereof the following new subsection: 
"(f) For purposes of this chapter, a worker shall be treated as 
participating in training during any week which is part of a break in 
training that does not exceed 14 days if— 
"(1) the worker was participating in a training program 
approved under section 236(a) before the beginning of such 
break in training, and 
"(2) the break is provided under such training program.". 
(d) 
SUPPLEMENTAL 
WAGE 
ALLOWANCE 
DEMONSTRATION 
PROJECTS.— 
(1) Subchapter C of chapter 2 of title II of the Trade Act of 
1974 is amended by inserting after section 245 the following new 
section: 
19 u s e 2318. 
"SEC. 246. SUPPLEMENTAL 
WAGE 
ALLOWANCE 
DEMONSTRATION 
PROJECTS. 
"(a) The Secretary shall establish and carry out one or more 
demonstration projects during fiscal years 1989 and 1990 for the 
purpose of^ 
"(1) determining the attractiveness of a supplemental wage 
allowance to various categories of workers eligible for assistance 
under this chapter, based on the amount and duration of the 
supplement; 
"(2) determining the effectiveness of a supplemental wage 
allowance as an option under this chapter in facilitating the 
readjustment of adversely affected workers; and 
"(3) determining whether a supplemental wage allowance 
should be made an option under the Trade Adjustment Assist-
ance program for all fiscal years. 
"(bXD For purposes of this section, the term 'supplemental wage 
allowance' means a payment that is made to an adversely affected 
worker who— 
"(A) accepts full-time emplojmient at an average weekly wage 
that is less than the average weekly wage of the worker in the 
adversely affected emplo3mient, 
"(B) prior to such acceptance, is eligible for trade readjust-
ment allowances under part I of subchapter B, and 
"(C) voluntarily elects to receive such payment in lieu of any 
trade readjustment allowances that the worker would otherwise 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1247 
be eligible to receive with respect to the period covered by the 
certification made under subchapter A that applies to such 
worker. 
"(2) A supplemental wage allowance shall be provided under any 
demonstration project established under subsection (a) to a worker 
described in paragraph (1) for each week during which the worker 
performs services in the full-time employment referred to in para-
graph dXA) in an amount that does not exceed the lesser of— 
"(A) the amount of the trade readjustment allowance that the 
worker would have been eligible to receive for any week under 
part 1 of subchapter B if the worker had not accepted the full-
time employment and had not made the election described in 
paragraph (IXC), or 
"(B) the excess of^ 
"(i) an amount equal to 80 percent of the average weekly 
wage of the worker in the adversely affected emplo3maent, 
over 
"(ii) the 
average 
weekly 
wage 
in 
the 
full-time 
emplojmient. 
"(3XA) Supplemental wage allowances shall not be provided under 
any demonstration project established under subsection (a) for more 
than 52 weeks. 
"(B) The total amount of supplemental wage allowances that may 
be paid to any worker under any demonstration project established 
under subsection (a) with respect to the period covered by the 
certification applicable to such worker shall not exceed an amount 
that is equal to the excess of— 
"(i) the amount of the limitation imposed under section 
233(aXl) with respect to such worker for such period, over 
"(ii) the amount of the trade readjustment allowsmces paid 
under part I of subchapter B to such worker for such period. 
"(c) The Secretary shall provide for an evaluation of demonstra-
tion projects conducted under this section to determine at least the 
following: 
"(1) the extent to which different age groups of eligible recipi-
ents utilize the supplemental wage allowance; 
"(2) the effect of the amount and duration of the supple-
mental wage allowance on the utilization of the allowance; 
"(3) the extent to which the supplemental wage allowance 
affects the demand for training and the appropriateness 
thereof; 
"(4) the extent to which the supplemental wage allowance 
facilitates the readjustment of workers who would not otherwise 
utilize benefits provided under this chapter; 
"(5) the extent to which the allowance affects the cost of 
carrying out the provisions of this chapter; and 
"(6) the effectiveness of the supplemental wage allowance as 
an option under this chapter in facilitating the readjustment of 
adversely affected workers. 
"(d) By no later than the date that is 3 years after the date of Reports. 
enactment of the Omnibus Trade and Competitiveness Act of 1988, 
the Secretary shall transmit to the Congress a report that 
includes— 
"(1) an evaluation of the projects authorized under this sec-
tion that is conducted in accordance with subsection (c), and 
"(2) a recommendation as to whether the supplemental wage 
allowance should be available on a permanent basis as an 
102 STAT. 1248 
PUBLIC LAW 100-418—AUG. 23, 1988 
option for some or all workers eligible for assistance under this 
chapter.". 
19 use 2318 
(2) For purposes of funding the demonstration projects estab-
note. 
lished under section 246(a) of the Trade Act of 1974, as added by 
paragraph (1) of this subsection— 
(A) the supplemental wage allowances payable under 
such projects shall be considered to be trade readjustment 
allowances payable under part I of subchapter B of chapter 
2 of title II of the Trade Act of 1974, and 
(B) the costs of administering such projects by the States 
shall be considered to be costs of administering such part I. 
(3) The table of contents of the Trade Act of 1974 is amended 
by inserting after the item relating to section 245 the following 
new item: 
"Sec. 246. Supplemental wage allowance demonstration projects.". 
Employment 
SEC. 1424. JOB TRAINING FOR WORKERS. 
^^t «i« ^^^f 
(a) IN GENERAL.—Subsection (a) of section 236 of the Trade Act of 
unemployment. 
^^^ ^^g ^ g ^ 2296(a)) is amended-
(1) by striking out "is available" in paragraph (1)(D) and 
inserting in lieu thereof "is reasonably available", 
(2) by striking out ", and" at the end of subparagraph (D) of 
paragraph (1), 
(3) by adding "and" at the end of subparagraph (E) of para-
graph (1), 
(4) by inserting after subparagraph (E) of paragraph (1) the 
following new subparagraph: 
'W) such training is suitable for the worker and available 
at a reasonable cost,", 
(5) by striking out "(to the extent appropriated funds are 
available)" in the first sentence of paragraph (1), 
(6) by inserting "(subject to the limitations imposed by this 
section)" after "costs of such training" in the second sentence of 
paragraph (1), 
(7) by inserting "directly or through a voucher system" after 
"by the Secretfiury" in the second sentence of paragraph (1), 
(8) by striking out "and" at the end of subparagraph (C) of 
paragraph (4), 
(9) by redesignating subparagraph (D) of paragraph (4) as 
subparagraph (F) of paragraph (4), 
(10) by inserting after subparagraph (C) of paragraph (4) the 
following new subparagraphs: 
Education. 
"(D) any prog^ram of remedial education, 
"(E) any training program (other than a training pro-
gram described in paragraph (7)) for which all, or any 
portion, of the costs of training the worker are paid— 
"(i) under any Federal or State program other than 
this chapter, or 
"(ii) from any source other than this section, and", 
(11) by redesignating paragraphs (2), (3), and (4) as paragraphs 
(3), (4), and (5), respectively, 
(12) by inserting after paragraph (1) the following new 
paragraph: 
"(2XA) The total amount of payments that may be made under 
paragraph (1) for any fiscal year shall not exceed $80,000,000. 
"(B) If, during any fiscal year, the Secretary estimates that the 
amount of funds necessary to pay the costs of training approved 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1249 
under this section will exceed the simount of the limitation imposed 
under subparagraph (A), the Secretary shall decide how the portion 
of such limitation that has not been expended at the time of such 
estimate is to be apportioned among the States for the remainder of 
such fiscsd year.", and 
(13) by adding at the end of subsection (a) the following new 
paragraphs: 
"(6XA) The Secretary is not required under paragraph (1) to 
pay the costs of any training approved under paragraph (1) to 
the extent that such costs are paid— 
"(i) under any Federal or State program other thsin this 
chapter, or 
"(ii) from any source other than this section. 
"(B) Before approving any training to which subparagraph (A) Contracts. 
may apply, the Secretary may require that the adversely af-
fected worker enter into an agreement with the Secretary under 
which the Secretary will not be required to pay under this 
section the portion of the costs of such training that the worker 
has reason to believe will be paid under the program, or by the 
source, described in subparagraph (A) or (B) of paragraph (1). 
"(7) The Secretary shall not approve a training program if— 
"(A) all or a portion of the costs of such training program 
are paid under any nongovernmental plan or program, 
"(B) the adversely affected worker has a right to obtain 
training or funds for training under such plan or program, 
and 
"(C) such plan or program requires the worker to re-
imburse the plan or program from funds provided under 
this chapter, or from wages paid under such training pro-
gram, for any portion of the costs of such training program 
paid under the plan or program. 
"(8) The Secretary may approve training for any adversely 
affected worker who is a member of a group certified under 
subchapter A at any time £ ^ r the date on which the group is 
certified under subchapter A, without regard to whether such 
worker has exhausted all rights to any unemplojnnent insur-
ance to which the worker is entitled. 
"(9) The Secretary shall prescribe regulations which set forth Regulations. 
the criteria under each of the subparagraphs of paragraph (1) 
that will be used as the basis for making determinations under 
paragraph (1).". 
(b) DELAYED INCREASE IN LIMITATION.—Paragraph (2) of section 
236(a) of the Trade Act of 1974, as added bv subsection (aX12) of this 
section, is amended by striking out "$80,000,000" in subparagraph 
(A) and inserting in lieu thereof "$120,000,000". 
(c) ON-THE-JOB TRAINING.—Section 236 of the Trade Act of 1974 
(19 U.S.C. 2296) is amended— 
(1) by striking out that portion of subsection (d) that precedes 
paragraph (1) and inserting in lieu thereof the following: 
"(d) The Secretary shall pay the costs of any on-the-job training of 
an adversely affected worker that is approved under subsection (aXD 
in equal monthly installments, but the Secretary may pay such 
costs, notwithstanding any other provision of this section, only if—", 
(2) by striking out subsection (c), and 
(3) by redesignating subsections (d), (e), and (f) as subsections 
(c), (d), and (e), respectively. 
(d) AGREEMENTS WFFH THE STATES.— 
102 STAT. 1250 
PUBLIC LAW 100-418—AUG. 23, 1988 
Employment 
and 
unemplojmient. 
19 use 2293 
note. 
(1)(A) Section 235 of the Trade Act of 1974 (19 U.S.C. 2295) is 
amended by striking out "cooperating State agencies" and 
inserting in lieu thereof "the States". 
(B) Subsection (e) of section 239 of the Trade Act of 1974 (19 
U.S.C. 2311(e)) is amended to read as follows: 
"(e) Any agreement entered into under this section shall provide 
for the coordination of the administration of the provisions for 
employment services, training, and supplemental assistance under 
sections 235 and 236 of this Act and under title III of the Job 
Training Partnership Act upon such terms and conditions as are 
established by the Secretary in consultation with the States and set 
forth in such agreement. Any agency of the State jointly administer-
ing such provisions under such agreement shall be considered to be 
a cooperating State agency for purposes of this chapter.". 
(2) Subsection (f) of section 239 of the Trade Act of 1974 (19 
U.S.C. 2311(f)) is amended to read as follows: 
"(f) Each cooperating State agency shall, in carrying out subsec-
tion (a)(2)— 
"(1) advise each worker who applies for unemployment insur-
ance of the benefits under this chapter and the procedures and 
deadlines for applying for such benefits, 
"(2) facilitate the early filing of petitions under section 221 for 
any workers that the agency considers are likely to be eligible 
for benefits under this chapter, 
"(3) advise each adversely affected worker to apply for train-
ing under section 236(a) before, or at the same time, the worker 
applies for trade readjustment allowances under part I of sub-
chapter B, and 
"(4) as soon as practicable, interview the adversely affected 
worker regarding suitable training opportunities available to 
the worker under section 236 and review such opportunities 
with the worker.". 
SEC. 1425. LIMITATION ON PERIOD IN WHICH TRADE READJUSTMENT 
ALLOWANCES MAY BE PAID. 
(a) IN GENERAL.—Paragraph (2) of section 233(a) of the Trade Act 
of 1974 (19 U.S.C. 2293(a)(2)) is amended to read as follows: 
"(2) A trade readjustment allowance shall not be paid for any 
week occurring after the close of the 104-week period that 
begins with the first week following the week in which the 
adversely affected worker was most recently totally separated 
from adversely affected employment— 
"(A) within the period which is described in section 
231(aXl), and 
"(B) with respect to which the worker meets the require-
ments of section 231(a)(2).". 
(b) WAIVER OF CERTAIN TIME LIMITATIONS.— 
(1) The provisions of subsections (aX2) and (b) of section 233 of 
the Trade Act of 1974 shall not apply with respect to any worker 
who became totally separated from adversely affected employ-
ment (within the meaning of section 247 of such Act) during the 
period that began on August 13, 1981, and ended on April 7, 
1986. 
(2XA) Any worker who is otherwise eligible for payment of a 
trade readjustment allowance under part I of subchapter B of 
chapter 2 of title II of the Trade Act of 1974 by resison of 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1251 
paragraph (1) of this subsection may receive payments of such 
allowance only if such worker— 
(i) is enrolled in a training program, approved by the 
Secretary under section 236(a) of such Act, and 
(ii) has been unemployed continuously since the date on 
which the worker became totally separated from the ad-
versely affected employment, not talang into account sea-
sonal employment, odd jobs, or part-time, temporary 
employment. 
(B) If the Secretary of Labor determines that— 
(i) a worker— 
(D has failed to begin participation in the training 
program the enrollment in which meets the require-
ment of subparagraph (A), or 
(II) has ceased to participate in such training pro-
gram before completing such training program, and 
(ii) there is no justifiable cause for such failure or 
cessation, 
no trade readjustment allowance may be paid to the worker 
under part I of subchapter B of chapter 2 of title II of the Trade 
Act of 1974 for the week in which such failure or cessation 
occurred, or any succeeding week, until the worker begins or 
resumes participation in a training prc^am approved under 
section 236(a) of such Act. 
SEC. 1426. AUTHORIZATION OF TRADE ADJUSTMENT ASSISTANCE 
PROGRAM. 
(a) ElxTENSiON O
F SuNSET.—Subsection (b) of section 285 of the 
Trade Act of 1974 (19 U.S.C. 2271, preceding note) is amended to 
read as follows: 
"(b) No assistance, vouchers, allowances, or other payments may 
be provided under chapter 2, no technical assistance may be pro-
vided under chapter 3, and no duty shall be imposed under section 
287, after September 30,1993.". 
(b) AUTHORIZATION OF APPROPRIATIONS.— 
(1) Section 245 of the Trade Act of 1974 (19 U.S.C. 2317) is 
amended by striking out "1986,1987,1988,1989,1990, and 1991" 
and inserting in Ueu thereof "1988, 1989, 1990, 1991, 1992, and 
1993". 
(2) Subsection (b) of section 256 of the Trade Act of 1974 (19 
U.S.C. 2346(b)) is amended by striking out "1986, 1987, 1988, 
1989, 1990, and 1991" and inserting in Ueu thereof "1988, 1989, 
1990,1991,1992, and 1993". 
(c) SPECIAL RULE.—In addition to amounts appropriated for pay-
ments under sections 236, 237, and 238 of the Trade Act of 1974 (19 
U.S.C. 2296) for fiscal year 1988, such amounts as may be necessary 
for payments under such sections— 
(1) after the date of enactment of this Act, and 
(2) before October 1,1988, 
are hereby appropriated and shall be charged to the appropriation 
for payments under such sections for fiscal year 1989. 
SEC. 1427. TRADE ADJUSTMENT ASSISTANCE TRUST FUND. 
(a) IN GENERAL.—Chapter 5 of title II of the Trade Act of 1974 (19 
U.S.C. 2391, et seq.) is amended by inserting after section 285 the 
following new section: 
102 STAT. 1252 
PUBLIC LAW 100-418—AUG. 23, 1988 
19 use 2396. 
"SEC. 286. TRADE ADJUSTMENT ASSISTANCE TRUST FUND. 
"(a) There is hereby established within the Treasury of the United 
States a trust fund to be known as the Trade Adjustment Assistance 
Trust Fund (hereinafter in this section referred to as the 'Trust 
Fund'), consisting of such amounts as may be transferred or credited 
to the Trust Fund as provided in this section or appropriated to the 
Trust Fund under subsection (e). 
"0)X1) The Secretary of the Treasury shall transfer to the Trust 
Fund out of the general fund of the Treasury of the United States 
amounts determined by the Secretary of the Treasury to be equiva-
lent to the amounts received into such general fund that are attrib-
utable to the duty imposed by section 287. 
"(2) The amounts which are required to be transferred under 
paragraph (1) shall be transferred at leeist quarterly from the gen-
eral fund of the Treasury of the United States to the Trust Fund on 
the basis of estimates made by the Secretary of the Treasury of the 
amounts referred to in paragraph (1) that are received into the 
Treasury. Proper adjustments shall be made in the amounts subse-
quently transferred to the extent prior estimates were in excess of, 
or less than, the amounts required to be transferred. 
Reports. 
"(cXD The Secretary of the Treasury shall be the trustee of the 
Trust Fund, and shall submit an annual report to the Committee on 
Finance of the Senate and the Committee on Ways and Means of the 
House of Representatives on the financial condition and the results 
of the operations of the Trust Fund during the fiscal year preceding 
the fiscal year in which such report is submitted and on the ex-
pected condition and operations of the Trust Fund during the fiscal 
year in which such report is submitted and the 5 fiscal years 
succeeding such fiscal year. Such report shall be printed as a House 
document of the session of the Congress to which the report is made. 
Securities. 
"(2XA) The Secretary of the Treasury shall invest such portion of 
the Trust Fund as is not, in his judgment, required to meet current 
withdrawals. Such investments may be made only in interest-
bearing obligations of the United States. For such purpose, such 
obligations may be acquired— 
"(i) on original issue at the issue price, or 
"(ii) by purchase of outstanding obligations at the market 
price. 
"(B) Any obligation acquired by the Trust Fund may be sold by the 
Secretary of the Treasury at the market price. 
"(C) The interest on, and the proceeds from the sale or redemption 
of, any obligations held in the Trust Fund shall be credited to and 
form a part of the Trust Fund. 
"(dXD Amounts in the Trust Fund shall be available— 
"(A) for the payment of drawbacks and refunds of the duty 
imposed by section 287 that are allowable under any other 
provision of Federal law, 
"(B) as provided in appropriation Acts— 
"(i) for expenditures that are required to carry out the 
provisions of chapters 2 and 3, including administrative 
costs, and 
"(ii) for payments required under subsection (e)(2). 
"(2) None of the amounts in the Trust Fund shall be available for 
the payment of loans guaranteed under chapter 3 or for any other 
expenses relating to financial assistance provided under chapter 3. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1253 
"(3XA) If the total amount of funds expended in any fiscal year to 
carry out chapters 2 and 3 (including administrative costs) exceeds 
an amount equal to 0.15 percent of the total value- of all articles 
. 
upon which a duty was imposed by section 287 during the preceding 
1-year period, the Secretary of Labor and the Secretary of Com-
merce (in consultation with the Secretary of the Treasury) shall, 
notwithstanding any provision of chapter 2 or 3, make a pro rata 
reduction in— 
"(i) the amounts of the trade readjustment allowances that 
are paid under part I of subchapter B of chapter 2, and 
"(ii) the assistance provided under chapter 3, 
to ensure (based on estimates of the amount of funds that will be 
necessary to carry out chapters 2 and 3, and of the amount of 
revenue that will be raised by section 287, during the remainder of 
such fiscal year and for the fiscal year succeeding such fiscal year) 
that all workers and firms eligible for assistance under chapter 2 or 
3 receive some assistance under chapter 2 or 3 and that the expendi-
tures made in providing such assistance during the remainder of 
such fiscal year and the fiscal year succeeding such fiscal year do 
not exceed the amount of funds available in the Trust Fund to pay 
for such expenditures. 
"(B) No reduction may be made under this paragraph in the 
amount of any trade readjustment allowance payable under part I of 
subchapter B of chapter 2 to any worker who received such trade 
readjustment allowance under such part for the week preceding the 
first week for which such reduction is otherwise being made under 
this paragraph. 
"(C) If a pro rata reduction made under subparagraph (A) is in 
effect at the close of a fiscal year, the Secretary of Labor and the 
Secretary of Commerce, in consultation with the Secretary of the 
Treasury, may adjust or modify such reduction at the beginning of 
the fiscal year succeeding such fiscal year, based on estimates of the 
amount of funds that will be necessary to carry out chapters 2 and 3, 
and of the amount of revenue that will be raised by section 287, 
during that succeeding fiscal year. 
"(D) Any pro rata reduction made under subparagraph (A), and 
any pro rata reduction adjusted or modified under subparagraph (C), 
shall cease to apply after the week in which— 
"(i) a 1-year period ends during which the total amount of 
funds that would have been expended to carry out chapters 2 
and 3, including administrative costs, if such reduction were not 
in effect did not exceed an amount equal to 0.15 percent of the 
total value of all articles upon which a duty was imposed during 
such 1-year period, or 
"(ii) the Secretary of Labor and the Secretary of (Dommerce, in 
consultation with the Secretary of the Treasury, determine that 
the amount of funds available in the Trust Fund are sufficient 
to carry out chapters 2 and 3 without such reduction. 
"(eXlXA) There are authorized to be appropriated to the Trust Appropriation 
Fund, as repayable advances, such sums as may from time to time authorization. 
be necessary to make the expenditures described in subsection 
(dXlXB). 
"(B) Any advance appropriated to the Trust Fund under the 
authority of subparsigraph (A) may be paid to the Trust Fund only to 
the extent that the total amount of advances paid during the fiscal 
year to the Trust Fund from any appropriation authorized under 
102 STAT. 1254 
PUBLIC LAW 100-418—AUG. 23, 1988 
subparagraph (A) that are outstanding after such advance is paid to 
the Trust Fund does not exceed the lesser of^ 
"(i) the excess of~ 
"(I) the total amount of funds that the Secretary of the 
Treasury (in consultation with the Secretary of Labor and 
the Secretary of Commerce) estimates will be necessary for 
the payments and expenditures described in subparagraphs 
(A) and (B) of subsection (d)(1) for such fiscal year, over 
"(II) the total amount of funds that the Secretary of the 
Treasury estimates will be available in the Trust Fund 
during the fiscal year (determined without regard to any 
advances made under this subsection during such fiscal 
year), or 
"(ii) the excess of^ 
"(I) an amount equal to 0.15 percent of the total value of 
all articles upon which the Secretary of the Treasury esti-
mates a duty will be imposed by section 287 during such 
fiscal year, over 
"(II) the amount described in clause (i)(II). 
"(2) Advances made to the Trust Fund from appropriations au-
thorized under paragraph (IXA) shall be repaid, and interest on such 
advances shall be paid, to the general fund of the Treeisury of the 
United States when the Secretary of the Treasury determines that 
sufficient funds are available in the Trust Fund for such purposes. 
"(3) Interest on advances made from appropriations authorized 
under paragraph (IXA) shall be at a rate determined by the Sec-
retary of the Treasury (as of the close of the calendar month 
preceding the month in which the advance is made) to be equal to 
the current average market yield on outstanding marketable obliga-
tions of the United States with remaining periods to maturity 
comparable to the anticipated period during which the advance will 
be outstanding.". 
(b) CONFORMING AMENDMENT.—The table of contents for the 
Trade Act of 1974 is amended by inserting, after the item relating to 
section 285, the following new items: 
"Sec. 286. Trade Adjustment Trust Fund. 
"Sec. 287. Imposition of additional fee.". 
President of U.S. 
SEC. 1428. IMPOSITION OF SMALL UNIFORM FEE ON ALL IMPORTS. 
19 use 2397 
(a) NEGOTIATIONS.— 
(1) The President shall— 
(A) undertake negotiations necessary to achieve changes 
in the General Agreement on Tariffs and Trade that would 
allow any country to impose a small uniform fee of not 
more than 0.15 percent on all imports to such country for 
the purpose of using the revenue from such fee to fund 
programs which directly assist adjustment to import com-
petition, and 
(B) undertake negotiations with any foreign country that 
has entered into a free trade agreement with the united 
States under subtitle A or under section 102 of the Trade 
Act of 1974 to obtain the consent of such country to the 
imposition of such a fee by the United States. 
(2) In the report that is submitted under section 163 of the 
Trade Act of 1974 for 1989 and 1990, the President shall include 
a statement on the progress of negotiations conducted under 
paragraph (1). 
note. 
PUBLIC LAW 100-418-AUG. 23, 1988 
102 STAT. 1255 
(3)(A) On the first day after the date of enactment of this Act Federal 
on which the General Agreement on Tariffs and Trade allows Register, 
any country to impose a fee described in paragraph (1), the 
publication. 
President shall submit to the Congress, and publish in the 
Federal Register, a written statement certifying such allowance. 
(B) On the first day after the date of enactment of this Act on 
which any foreign country described in paragraph (1)(B) con-
sents to the imposition of such a fee by the United States, the 
President shall submit to the Congress, and publish in the 
Federal Register, a written statement certifying such consent. 
(4)If-
(A) the President does not submit to the Congress the 
written statement described in paragraph (3)(A) before the 
date that is 2 years after the date of enactment of this Act, 
and 
(B) the President determines on such date that the fee 
imposed by the amendment made by subsection (b) is not in 
the national economic interest, 
the President shall submit to the Congress, and publish in the 
Federal 
Federal Register, written notice of such determination on such 
Register, 
date. 
publication. 
(5)(A) Any disapproval resolution that is introduced in the 
Senate or House of Representatives within the 90-day period 
beginning on the date that is 2 years after the date of enactment 
of this Act shall, for purposes of section 152 of the Trade Act of 
1974 (19 U.S.C. 2192), be treated as a joint resolution described 
in section 152(a)(1)(A) of such Act. 
(B) For purposes of this part, the term "disapproval resolu-
tion" means a joint resolution of the two Houses of the Con-
gress, the matter after the resolving clause of which is as 
follows: "That the Congress disapproves of the determination 
made by the President under section 1428(a)(4)(A) of the Omni-
bus Trade and Competitiveness Act of 1988.". 
Ot)) IMPOSITION OF FEE.—Chapter 5 of title II of the Trade Act of 
1974 (19 U.S.C. 2391, et seq.), as amended by the preceding section of 
this Act, is further amended by adding at the end thereof the 
following new section: 
"SEC. 287. IMPOSITION OF ADDITIONAL FEE. 
19 USC 2397. 
"(a) In addition to any other fee imposed by law, there is hereby 
imposed a fee on all articles entered, or withdrawn from warehouse, 
for consumption in the customs territory of the United States during 
any fiscal year. 
'(b)(1) The rate of the fee imposed by subsection (a) shall be a 
uniform ad valorem rate proclaimed by the President that is equal 
to the lesser of^ 
"(A) 0.15 percent, or 
"(B) the percentage that is sufficient to provide the funding 
necessary to— 
"(i) carry out the provisions of chapters 2 and 3, and 
"(ii) repay any advances made under section 286(e). 
"(2) The President shall issue a proclamation setting forth the President of U.S. 
rate of the fee imposed by subsection (a) by no later than the date 
that is 15 days before the first date on which a fee is imposed under 
subsection (a). 
"(3)(A) For each fiscal year succeeding the first fiscal year in 
President of U.S. 
which a fee is imposed under subsection (a), the President shall issue 
102 STAT. 1256 
PUBLIC LAW 100-418—AUG. 23, 1988 
a proclamation adjusting the rate of the fee imposed by subsection 
(a) during such fiscal year to the ad valorem rate that meets the 
requirements of paragraph (1) for such fiscal year. 
"(B) Any proclamation issued under subparagraph (A) for a fiscal 
year shall be issued at least 30 days before the beginning of such 
fiscal year. 
"(cXD Except as otherwise provided in this subsection, duty-free 
treatment provided with respect to any article under any other 
provision of law shall not prevent the imposition of a fee with 
respect to such article by subsection (a). 
"(2) No fee shall be imposed by subsection (a) with respect to— 
"(A) any article (other than an article provided for in item 
870.40, 870.45, 870.50, 870.55, or 870.60 of the Tariff Schedules of 
the United States) that is treated as duty-free under schedule 8 
of the Tariff Schedules of the United States, or 
"(B) any article which has a value of less than $1,000.". 
SEC. 1429. STUDY OF CERTIFICATION METHODS. 
(a) IN GENERAL.—The Secretary of Labor, in consultation with the 
Secretary of Commerce, shall conduct a study of the methods 
(including, but not limited to, industry-wide certification) that could 
be used to expedite the certification of workers under subchapter A 
of chapter 2 of title II of the Trade Act of 1974. 
Ot)) REPORT.—By no later than the date that is 6 months after the 
date of enactment of this Act, the Secretary of Labor shall submit to 
the Congress a report on the study conducted under subsection (a). 
The report shall include the recommendations of the Secretary of 
Labor regarding the methods that are the subject of the study 
conducted under subsection (a). 
19 use 2397 
SEC. 1430. EFFECTIVE DATES. 
°°^' 
(a) IN GENERAL.—Except as otherwise provided by this section, the 
amendments made by this part shall take effect on the date of 
enactment of this Act. 
(b) ADDITIONAL FEE.— 
(1) Except as otherwise provided in this subsection, the 
amendment made by section 1428(b) shall apply (if at all) to any 
article entered, or withdrawn from warehouse for consumption, 
after the date that is 30 days after the earlier of— 
(A) the date on which the President submits to the Con-
gress 
the 
written 
statement 
described 
in 
section 
1428(aX3XA), 
(B) the date that is 2 years after the date of enactment of 
this Act, or 
(C) the date of the enactment of a disapproval resolution 
that passes both Houses of the Congress within the 90-day 
period beginning on the date that is 2 years after the date of 
enactment of this Act. 
(2) If the President determines on the date that is 2 years 
after the date of enactment of this Act that the fee imposed by 
the amendment made by section 1428(b) is not in the national 
economic interest, subparagraph (B) of paragraph (1) shall not 
be 
taken 
into 
account 
in 
applying 
the 
provisions 
of 
paragraph (1). 
(3) The amendment made by section 1428(b) shall apply (if at 
all) to the products of any foreign country described in section 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1257 
1428(aXlXB) that are entered, or withdrawn from warehouse for 
consumption, after the later of— 
(A) the first date on which the fee imposed by such 
amendment applies with respect to products of foreign 
countries that are not described in section 1428(aXlXB), or 
(B) the date on which the President submits to the Con-
gress 
the 
written 
statement 
described 
in 
section 
1428(aX3XB) certifying the consent of such foreign country 
to the imposition of the fee. 
(c) TRUST FUND.—The amendments made by section 1427 shall 
take effect on the first date on which the amendment made by 
section 1428(b) applies with respect to any articles. 
(d) EuGiBiuTY OF WORKERS AND FIRMS.—The amendments made 
by sections 1421(b) and 1424(b) shall take effect on the date that is 1 
year sifter the first date on which the amendment made by section 
1428(b) applies with respect to any articles. 
(e) NOTIFICATION REQUIREMENTS.—The amendments made by sec-
tion 1422 shall take effect on the date that is 30 days after the date 
of enactment of this Act. 
(f) TRAINING REQUIREMENT.—The amendments made by subsec-
tions (a), (bX2), and (cX2) of section 1423 and by paragraphs (2) and 
(3) of section 1424(c) shall take effect on the date that is 90 days after 
the date of enactment of this Act. 
(g) LIMITATION ON PERIOD FOR WHICH TRADE READJUSTMENT 
ALLOWANCES MAY BE MADE.—The amendment made by section 
1425(a) shall not apply to with respect to any total separation of a 
worker from adversely affected emplo3nnent (within the meaning of 
section 247 of such Act) that occurs before the date of enactment of 
this Act if the application of such amendment with respect to such 
total separation would reduce the period for which such worker 
would (but for such amendment) be allowed to receive trade re-
adjustment allowances under part I of subchapter B of chapter 2 of 
title II of the Trade Act of 1974. 
Subtitle E—National Security 
SEC. 1501. IMPORTS THAT THREATEN NATIONAL SECURITY. 
(a) IN GENERAL.—Section 232 of the Trade Expansion Act of 1962 
(19 U.S.C. 1862) is amended— 
(1) by striking out "subsection (b)" each place it appears in 
subsection (e) and inserting in lieu thereof "subsection (c)", 
(2) by redesignating subsections (c), (d), and (e) as subsections 
(d), (e), and (f), respectively, and 
(3) by striking out subsection (b) and inserting in lieu thereof 
the following new subsections: 
"(bXlXA) Upon request of the head of any department or agency, 
upon application of an interested party, or upon his own motion, the 
Secretary of (Commerce (hereafter in this section referred to as the 
'Secretary') shall immediately initiate an appropriate investigation 
to determine the effects on the national security of imports of the 
article which is the subject of such request, application, or motion. 
"(B) The Secretary shall immediately provide notice to the Sec-
retary of Defense of any investigation initiated under this section. 
"(2XA) In the course of any investigation conducted under this 
subsection, the Secretary shall— 
102 STAT. 1258 
PUBLIC LAW 100-418—AUG. 23, 1988 
Reports. 
Federal 
Register, 
publication. 
Regulations. 
President of U.S. 
"(i) consult with the Secretary of Defense regarding the meth-
odolc^cal and policy questions raised in any investigation initi-
ated under paragraph (1), 
"(ii) seek information and advice from, and consult with, 
appropriate officers of the United States, and 
'(iii) if it is appropriate and after reasonable notice, hold 
public hearings or otherwise afford interested parties an oppor-
tunity to present information and advice relevant to such 
investigation. 
"(B) Upon the request of the Secretary, the Secretary of Defense 
shall provide the Secretary an assessment of the defense require-
ments of any article that is the subject of an investigation conducted 
under this section. 
"(3XA) By no later than the date that is 270 days after the date on 
which an investigation is initiated under paragraph (1) with respect 
to any article, the Secretary shall submit to the President a report 
on the findings of such investigation with respect to the effect of the 
importation of such article in such quantities or under such cir-
cumstances upon the national security and, based on such findings, 
the recommendations of the Secretary for action or inaction under 
this section. If the Secretary ^ d s that such article is being im-
ported into the United States in such quantities or under such 
circumstances as to threaten to impair the national security, the 
Secretary shall so advise the President in such report. 
"(B) Any portion of the report submitted by the Secretary under 
subparagraph (A) which does not contain classified information or 
proprietary information shall be published in the Federal Register. 
"(4) The Secretary shall prescribe such procedural regulations as 
may be necessary to carry out the provisions of this subsection. 
"(cXlXA) Within 90 days after receiving a report submitted under 
subsection (bX3XA) in which the Secretary finds that an article is 
being imported into the United States in such quantities or under 
such circumstances as to threaten to impair the national security, 
the President shall— 
"(i) determine whether the President concurs with the finding 
of the Secretary, and 
"(ii) if the President concurs, determine the nature and dura-
tion of the action that, in the judgment of the President, must 
be taken to adjust the imports of the article and its derivatives 
so that such imports will not threaten to impair the national 
security. 
"(B) If the President determines under subparagraph (A) to take 
action to adjust imports of an article and its derivatives, the Presi-
dent shall implement that action by no later than the date that is 15 
days after the day on which the President determines to take action 
under subparagraph (A). 
"(2) By no later than the date that is 30 days after the date on 
which the President makes any determinations under paragraph (1), 
the President shall submit to the Ck)ngress a written statement of 
the reasons why the President has decided to take action, or refused 
to take action, under psu-agraph (1). Such stetement shall be in-
cluded in the report published under subsection (e). 
"(3XA)If-
"(i) the action taken by the President under paragraph (1) is 
the negotiation of an agreement which limits or restricts the 
importation into, or the exportetion to, the United Stetes of the 
article that threatens to impair national security, and 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1259 
"(ii) either— 
"(I) no such agreement is entered into before the date 
that is 180 days after the date on which the President 
makes the determination under paragraph (IXA) to take 
such action, or 
"(ID such an agreement that has been entered into is not 
being carried out or is ineffective in eliminating the threat 
to the national security posed by imports of such article, 
the President shall take such other actions as the President deems 
necessary to adjust the imports of such article so that such imports 
will not threaten to impair the national security. The President Federal 
shall publish in the Federal Register notice of any additional actions Register, 
being taken under this section by reason of this subparagraph, publication. 
"(B) If— 
"(i) clauses (i) and (ii) of subpareigraph (A) apply, and 
"(ii) the President determines not to take any additional 
actions under this subsection, 
the President shall publish in the Federal Register such determina-
tion and the reasons on which such determination is based.". 
(b) REPORTS.— 
(1) Subsection (e) of section 232 of the Trade Expansion Act of 
1962 (19 U.S.C. 1862), as redesignated by subsection (aX2), is 
amended to read as follows: 
"(dXD Upon the disposition of each request, application, or motion Federal 
under subsection (b), the Secretary shall submit to the Congress, and Register, 
publish in the Federal Register, a report on such disposition. 
publication. 
"(2) The President shall submit to the Congress an annual report President of U.S. 
on the operation of the provisions of this section.". 
(2) Section 127 (c) of the Trade Act of 1974 (19 U.S.C. 1863) is 
repealed. 
(c) ENFORCEMENT OF MACHINE TOOL IMPORT ARRANGEMENTS.— 
(1) The Secretary of Commerce is authorized to request the 
Secretary of the Tregisury to carry out such actions as may be 
necessary or appropriate to ensure the attainment of the objec-
tives of the machine tool decision of the President on May 20, 
1986, and to enforce any quantitative limitation, restriction, or 
other terms contained in related bilateral arrangements. Such 
actions may include, but are not limited to, requirements that 
valid export licenses or other documentation issued by a foreign 
government be presented as a condition for the entry into the 
United States of assembled and un£issembled machine tool 
products. 
(2) For purposes of this subsection, the term "related bilateral 
arrangement" means any arrangement, agreement, or under-
standing entered into or undertaken, or previously entered into 
or undertaken, by the United States and emy foreign country or 
customs union containing such quantitative limitations, restric-
tions, or other terms relating to the importation into, or expor-
tation to, the United States of categories of assembled and 
unassembled machine tool products as may be necessary to 
implement such machine tool decision of May 20,1986. 
(d) APPUCATION OF AMENDMENTS.— 
19 use 1862 
(1) Except as otherwise provided under this subsection, the note, 
amendments made by this section shall apply with respect to 
investigations initiated under section 232(b) of the Trade Expan-
sion Act of 1962 on or after the date of enactment of this Act. 
102 STAT. 1260 
PUBLIC LAW 100-418—AUG. 23, 1988 
(2) The provisions of subsection (c) of section 232 of the Trade 
Expansion Act of 1962, as amended by this section, shall apply 
with respect to any report submitted by the Secretary of Com-
merce to the President under section 2320?) of such Act after the 
date of enactment of this Act. 
President of U.S. 
(3) By no later than the date that is 90 days after the date of 
enactment of this Act, the President shall make the determina-
tions described in section 232(cXlXA) of the Trade Expansion 
Act of 1962, as amended by this section, with respect to any 
report— 
i 
(A) which was submitted by the Secretary of Commerce to 
the President under section 232(b) of such Act before the 
date of enactment of this Act, and 
(B) with respect to which no action has been taken by the 
President before the date of enactment of this Act. 
Subtitle F—Trade Agencies; Advice, Consul-
tation, and Reporting Regarding Trade 
Matters 
PART 1—FUNCTIONS AND ORGANIZATION OF 
TRADE AGENCIES 
Subpart A—Office of the United States Trade 
Representative 
SEC. 1601. FUNCTIONS. 
(a) IN GENERAL.—Section 141(c) of the Trade Act of 1974 (19 U.S.C. 
2171(c)) is amended— 
(1) by amending paragraph (1) to read as follows: 
"(cXD The United States Trade Representative shall— 
"(A) have primary responsibility for developing, and for co-
ordinating the implementation of, United States international 
trade policy, including commodity matters, and, to the extent 
they are related to international trade policy, direct investment 
matters; 
"(B) serve as the principal advisor to the President on inter-
national trade policy and shall advise the President on the 
impact of other policies of the United States Government on 
international trade; 
"(C) have lead responsibility for the conduct of, and shall be 
the chief representative of the United States for, international 
trade negotiations, including commodity and direct investment 
negotiations, in which the United States participates; 
"(D) issue and coordinate policy guidance to departments and 
agencies on basic issues of policy and interpretation arising in 
the exercise of international trade functions, to the extent 
necessary to assure the coordination of international trade 
policy and consistent with any other law; 
"(E) act as the principal spokesman of the President on 
international trade; 
"(F) report directly to the President and the CJongress regard-
ing, and be responsible to the President and the CJongress for 
the administration of, trade agreements programs; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1261 
"(G) advise the President and Congress with respect to non-
tariff barriers to international trade, international commodity 
agreements, and other matters which are related to the trade 
£^eements programs; 
"(H) be responsible for making reports to (Dongress with 
respect to matters referred to in subpareigraphs (C) and (F); 
"(I) be chairman of the interagency trade organization estab-
lished under section 242(a) of the Trade Expansion Act of 1962, 
and shall consult with and be advised by such organization in 
the performance of his functions; and 
"(J) in addition to those functions that are delegated to the 
United States Trade Representative as of the date of the enact-
ment of the Omnibus Trade and Competitiveness Act of 1988, be 
responsible for such other functions as the President may 
direct"; 
(2) by redesignating paragraphs (2) and (3) as paragraphs (3) 
and (4), respectively; and 
(3) by inserting after paragraph (1) the following: 
"(2) It is the sense of Congress that the United States Trade 
Representative should— 
"(A) be the senior representative on any body that the Presi-
dent may establish for the purpose of providing to the President 
advice on overall economic policies in which international trade 
matters predominate; and 
"(B) be included as a participant in all economic summit and 
other international meetings at which international trade is a 
major topic", 
(b) UNFAIR TRADE PRACTICES.—Such section 141 is further 
19 use 2171. 
amended— 
(1) by redesignating subsections (d), (e), and (f) as subsections 
(e), (f), and (g), respectively; and 
(2) by inserting after subsection (c) the following new 
subsection: 
"(dXD In canning out subsection (c) with respect to unfair trade 
practices, the United States Trade Representative shall— 
"(A) coordinate the application of interagency resources to 
specific unfair trade practice cases; 
"(B) identify, and refer to the appropriate Federal department 
or agency for consideration with respect to action, each act, 
policy, or practice referred to in the report required under 
section 181(b), or otherwise known to the United States Trade 
Representative on the basis of other available information, that 
may be an unfair trade practice that either— 
"(i) is considered to be inconsistent with the provisions of 
any trade agreement and has a significant adverse impact 
on United States commerce, or 
"(ii) has a significant adverse impact on domestic firms or 
industries that are either too smsdl or finemcially weak to 
initiate proceedings under the trade laws; 
"(C) identify practices having a significant adverse impact on 
United States commerce that the attainment of United States 
negotiating objectives would eliminate; £md 
"(D) identify, on a biennial basis, those United States Govern-
ment policies and practices that, if eng£iged in by a foreign 
government, might constitute unfair trade practices under 
United States law. 
102 STAT. 1262 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(2) For purposes of carrying out paragraph (1), the United States 
Trade Representative shall be assisted by an interagency unfair 
trade practices advisory committee composed of the Trade Rep-
resentative, who shall chair the committee, and senior representa-
tives of the following agencies, appointed by the respective heads of 
those agencies: 
"(A) The Bureau of Economics and Business AfTairs of the 
Department of State. 
"(B) The United States and Foreign Commercial Services of 
the Department of Commerce. 
"(O The International Trade Administration (other than the 
United States and Foreign Commercial Service) of the Depart-
ment of Commerce. 
"(D) The Foreign Agricultural Service of the Department of 
Agriculture. 
The United States Trade Representative may also request the advice 
of the United States International Trade Commission regarding the 
carrying out of paragraph (1). 
"(3) For purposes of this subsection, the term 'imfair trade prac-
tice' means any act, policy, or practice that— 
"(A) may be a subsidy with respect to which countervailing 
duties may be imposed under subtitle A of title VII; 
"(B) may result in the sale or likely sale of foreign merchan-
dise with respect to which antidumping duties may be imposed 
under subtitle B of title VII; 
"(C) may be either an unfair method of competition, or an 
unfair act in the importation of articles into the United States, 
that is unlawful under section 337; or 
"(D) may be an act, policy, or practice of a kind with respect 
to which action may be taken under title III of the Trade Act of 
1974.". 
Subpart B—United States International Trade 
Commission 
SEC. 1611. SERVICE ON COMMISSION FOR PURPOSES OF DETERMINING 
ELIGIBILITY FOR DESIGNATION AS CHAIRMAN. 
Section 330(cXAXi) of the Tariff Act of 1930 (19 U.S.C. 1330(cXAXi)) 
is amended by striking out "most recently appointed to" and insert-
ing "with the shortest period of service on". 
SEC 1612. TREATMENT OF COMMISSION UNDER PAPERWORK REDUCTION 
ACT. 
Section 330 of the Tariff Act of 1930 (19 U.S.C. 1330) is amended by 
adding at the end thereof the following new subsection: 
"(f) The Commission shall be considered to be an independent 
r^ulatory agency for purposes of chapter 35 of title 44, United 
States Code.". 
SEC. 1613. TREATMENT 
OF 
CONFIDENTIAL 
INFORMATION 
BY 
COMMISSION. 
The first sentence of section 332(g) of the Tariff Act of 1930 (19 
U.S.C. 1332(g)) is amended by striking out ", and shall report to 
Congress" and inserting ". However, the Commission may not re-
lease information which the (Commission considers to be confidential 
business information unless the party submitting the confidential 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1263 
business information had notice, at the time of submission, that 
such information would be released by the Commission, or such 
party subsequently consents to the release of the information. The 
Reports. 
Commission shall report to Congress.". 
SEC. 1614. TRADE REMEDY ASSISTANCE OFFICE. 
Section 339 of the Tariff Act of 1930 (19 U.S.C. 1339) is amended— 
(1) by amending subsection (a)— 
(A) by striking out "a Trade" and inserting "a separate 
office to be known as the Trade", and 
(B) by striking out ", upon request, concerning—" and 
inserting "upon request and shall, to the extent feasible, 
provide assistance and advice to interested parties concern-
ing—"; and 
(2) by amending subsection (b) to read as follows: 
"(b) The Trade Remedy Assistance Office, in coordination with 
each agency responsible for administering a trade law, shall provide 
technical and legal assistance and advice to eligible small businesses 
to enable them— 
"(1) to prepare and file petitions and applications (other than 
those which, in the opinion of the Office, are frivolous); and 
"(2) to seek to obtain the remedies and benefits available 
under the trade laws, including any administrative review or 
administrative appeal thereunder.". 
Subpart C—Interagency Trade Organization 
SEC. 1621. FUNCTIONS AND ORGANIZATION. 
(a) IN GENERAL.—Section 242 of the Trade Expansion Act of 1962 
(19 U.S.C. 1872) is amended as follows: 
(1) Subsection (a) is amended to read as follows: 
"(aXD The President shall establish an interagency organization. President of U.S. 
"(2) The functions of the organization are— 
"(A) to assist, and make recommendations to, the President in 
carrying out the functions vested in him by the trade laws and 
to advise the United States Trade Representative (hereinafter 
in this section referred to as the Trade Representative') in 
carrying out the functions set forth in section 141 of the Trade 
Act of 1974; 
"(B) to assist the President, and advise the Trade Representa-
tive, with respect to the development and implementation of the 
international trade policy objectives of the United States; and 
"(C) to advise the President and the Trade Representative 
with respect to the relationship between the international trade 
policy objectives of the United States and other major policy 
areas which may significantly affect the overall international 
trade policy and trade competitiveness of the United States. 
"(3) The interagency organization shall be composed of the 
following: 
"(A) The Trade Representative, who shall be chairperson. 
"(B) The Secretary of (Commerce. 
"(C) The Secretary of State. 
"(D) The Secretary of the Treasury. 
"(E) The Secretary of Agriculture. 
"(F) The Secretary of Labor. 
The Trade Representative may invite representatives from other 
agencies, as appropriate, to attend particular meetings if subject 
102 STAT. 1264 
PUBLIC LAW 100-418—AUG. 23, 1988 
matters of specific functional interest to such agencies are under 
consideration. It shall meet at such times and with respect to such 
matters as the President or the Chairman shall direct.". 
(2) Subsection 0)) is amended by adding at the end thereof the 
following: 
"In carrying out its functions under this subsection, the organiza-
tion shall take into account the advice of the congressional advisers 
and private sector advisory committees, as well as that of any 
conmiittee or other body established to advise the department, 
agency, or office which a member of the organization heads.". 
19 use 1872 
(b) SENSE OF CONGRESS.—It is the sense of Congress that the 
note. 
interagency organization established under subsection (a) should be 
the principal interagency forum within the executive branch on 
international trade policy matters. 
PART 2—ADVICE AND CONSULTATION REGARD-
ING 
TRADE 
POLICY, 
NEGOTIATIONS, 
AND 
AGREEMENTS 
SEC. 1631. INFORMATION AND ADVICE FROM PRIVATE AND PUBLIC 
SECTORS RELATING TO TRADE POLICY AND AGREEMENTS. 
Section 135 of the Trade Act of 1974 (19 U.S.C. 2155) is amended to 
read as follows: 
-SEC. 135. INFORMATION AND ADVICE FROM PRIVATE AND PUBLIC 
SECTORS. 
President of U.S. 
"(a) I N GENERAL.— 
"(1) The President shall seek information and advice from 
representative elements of the private sector and the non-
Federal governmental sector with respect to— 
"(A) n^otiating objectives and bargaining positions 
before entering into a trade agreement under this title or 
section 1102 of the Omnibus TVade and Competitiveness Act 
of 1988; 
"(B) the operation of any trade agreement once entered 
into; and 
"(C) other matters arising in connection with the develop-
ment, implementation, and administration of the trade 
policy of the United States, including those matters re-
ferred to in Reorganization Plan Number 3 of 1979 and 
Executive Order Numbered 12188, and the priorities for 
actions thereunder. 
To the maximum extent feasible, such information and advice 
on negotiating objectives shall be sought and considered before 
the commencement of n^otiations. 
"(2) The President shall consult with representative elements 
of the private sector and the non-Federal governmental sector 
on the overall current trade policy of the United States. The 
consultations shall include, but are not limited to, the following 
elements of such policy: 
"(A) The principal multilateral and bilateral trade n^o-
tiating objectives and the progress being made toward their 
achievement. 
"(B) The implementation, operation, and effectiveness of 
recently concluded multilateral and bilateral trade agree-
ments and resolution of trade disputes. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1265 
"(C) The actions taken under the trade laws of the United 
States and the effectiveness of such actions in achieving 
trade poUcy objectives. 
"(D) Important developments in other areas of trade for 
which there must be developed a proper policy response. 
"(3) The President shall take the advice received through 
consultation under paragraph (2) into account in determining 
the importance which should be placed on each major objective 
and negotiating position that should be adopted in order to 
achieve the overall trade policy of the United States. 
"(b) ADVISORY COMMITTEE FOR TRADE POUCY AND NEGOTIATIONS.— 
President of U.S. 
"(1) The President shall establish an Advisory Committee for 
Trade Policy and Negotiations to provide overall policy advice 
on matters referred to in subsection (a). The committee shall be 
composed of not more than 45 individuals and shall include 
representatives of non-Federal governments, labor, industry, 
agriculture, small business, service industries, retailers, and 
consumer interests. The committee shall be broadly representa-
tive of the key sectors and groups of the economy, particularly 
with respect to those sectors and groups which are affected by 
trade. Members of the committee shall be recommended by the 
United States Trade Representative and appointed by the Presi-
dent for a term of 2 years. An individual may be reappointed to 
committee for any number of terms. Appointments to the 
Committee shall be made without regard to political affiliation. 
"(2) The committee shall meet as needed at the call of the 
United States Trade Representative or at the call of two-thirds 
of the members of the committee. The chairman of the commit-
tee shall be elected by the committee from among its members. 
"(3) The United States Trade R^resentative shall make 
available to the committee such staff, information, personnel, 
and administrative services and assistance as it may reasonably 
require to cany out its activities. 
"(c) 
GENERAL 
POUCY, 
SECTORAL, 
OR 
FUNCTIONAL 
ADVISORY 
COMMITTEES.— 
"(1) The President may establish individual general policy 
advisory committees for industry, labor, agriculture, services, 
investment, defense, and other interests, as appropriate, to 
provide general policy advice on matters referred to in subsec-
tion (a). Such committees shall, insofar as is practicable, be 
representative of all industry, labor, agricultural, service, 
investment, defense, and other interests, respectively, including 
small business interests, and shall be organized by the United 
States Trade Representative and the Secretaries of Commerce, 
Defense, Labor, Agriculture, the Treasury, or other executive 
departments, as appropriate. The members of such committees 
shall be appointed by the United States Trade Representative in 
consultation with such Secretaries. 
"(2) The President shall establish such sectoral or functional 
President of U.S. 
advisory committees as may be appropriate. Such committees 
shall, insofar as is practicable, be representative of all industry, 
labor, agricultural, or service interests (including small business 
interests) in the sector or functional areas concerned. In 
organizing such committees, the United States Trade Rep-
resentative and the Secretaries of Commerce, Labor, Agri-
culture, the Treasury, or other executive departments, as appro-
priate, shall— 
102 STAT. 1266 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(A) consult with interested private organizations; and 
"(B) take into account such factors as— 
"(i) patterns of actual and potential competition be-
tween United States industry and agriculture and for-
eign enterprise in international trade, 
"(ii) the character of the nontariff barriers and other 
distortions affecting such competition, 
"(iii) the necessity for reasonable limits on the 
number of such advisory committees, 
"(iv) the necessity that each conunittee be reasonably 
limited in size, and 
"(v) in the case of each sectoral committee, that the 
product lines covered by each committee be reasonably 
related. 
"(3) The President— 
"(A) may, if necessary, establish policy advisory commit-
tees representing non-Federal governmental interests to 
provide policy advice— 
"(i) on matters referred to in subsection (a), and 
"(ii) with respect to implementation of trade agree-
ments, and 
President of U.S. 
"(B) shall include as members of committees established 
under subparagraph (A) representatives of non-Federal 
governmental interests if he finds such inclusion appro-
priate after consultation by the United States Trade Rep-
resentative with such representatives. 
"(4) Appointments to each committee established under para-
graph (1), (2), or (3) shall be made without regard to political 
affiliation. 
"(d) POLICY, TECHNICAL, AND OTHER ADVICE AND INFORMATION.— 
Ck>mmittees established under subsection (c) shall meet at the call of 
the United States Trade Representative and the Secretaries of 
Agriculture, Commerce, Labor, Defense, or other executive depart-
ments, as appropriate, to provide policy advice, technical advice and 
information, and advice on other factors relevant to the matters 
referred to in subsection (a). 
Reports. 
"(e) MEETING OF ADVISORY (COMMITTEES AT CONCLUSION OF 
NEGOTIATIONS.— 
"(1) The Advisory CJommittee for Trade Policy and Negotia-
tions, each appropriate policy advisory committee, and each 
sectoral or functional advisory committee, if the sector or area 
which such committee represents is affected, shall meet at the 
conclusion of negotiations for each trade agreement entered 
into under section 1102 of the Omnibus Trade and Competitive-
ness Act of 1988, to provide to the President, to CJongress, and to 
the United States Trade Representative a report on such agree-
ment. Each report that applies to a trade agreement entered 
into under section 1102 of the Omnibus Trade and (Competitive-
ness Act of 1988 shall be provided under the preceding sentence 
not later than the date on which the President notifies the 
(Congress under section 1103(aXlXA) of such Act of 1988 of his 
intention to enter into that agreement. 
"(2) The report of the Advisory (Committee for Trade Policy 
and Negotiations and each appropriate policy advisory commit-
tee shall include an advisory opinion as to whether and to what 
extent the agreement promotes the economic interests of the 
United States and achieves the applicable overall and principal 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1267 
negotiating objectives set forth in section 1101 of the Omnibus 
Trade and Competitiveness Act of 1988, as appropriate. 
"(3) The report of the appropriate sectoral or functional 
committee under paragraph (1) shall include an advisory opin-
ion as to whether the agreement provides for equity and reci-
procity within the sector or within the functional area. 
"(f) 
APPUCATION OF FEDERAL ADVISORY COMMITTEE ACT.—The 
provisions of the Federal Advisory Committee Act apply— 
"(1) to the Advisory Committee for Trade Policy and Negotia-
tions established under subsection (b); and 
"(2) to all other advisory committees which may be estab-
lished under subsection (c); except that the meetings of advisory 
committees established under subsections (b) and (c) shall be 
exempt from the requirements of subsections (a) and (b) of 
sections 10 and 11 of the Federal Advisory Committee Act 
(relating to open meetings, public notice, public participation, 
and public availability of documents), whenever and to the 
extent it is determined by the President or his designee that 
such meetings will be concerned with matters the disclosure of 
which would seriously compromise the development by the 
United States Government of trade policy, priorities, negotiat-
ing objectives or bargaining positions with respect to matters 
referred to in subsection (a), and that meetings may be called of 
such special task forces, plenary meetings of chairmen, or other 
such groups made up of members of the committees established 
under subsections (b) and (c). 
"(g) TRADE SECRETS AND CONFIDENTIAL INFORMATION.— 
"(1) Trade secrets and commercial or financial information 
which is privileged or confidential, and which is submitted in 
confidence by the private sector or non-Federal government to 
officers or employees of the United States in connection with 
trade negotiations, may be disclosed upon request to— 
"(A) officers and employees of the United States des-
ignated by the United States Trade Representative; 
"(B) members of the Committee on Ways and Means of 
the House of Representatives and the Committee on Fi-
nance of the Senate who are designated as official advisers 
under section 161(a)(1) or are designated by the chairmen of 
either such committee under section 161(bX3XA) and staff 
members of either such committee designated by the chair-
men under section 161(b)(3XA); and 
"(C) members of any committee of the House or Senate or 
any joint committee of Congress who are designated as 
advisers under section 161(aX2) or designated by the chair-
man of such committee under section 161(bX3)(B) and staff 
members of such committee designated under section 
161(b)(3XB), but disclosure may be made under this subpara-
graph only with respect to trade secrets or commercial or 
financial information that is relevant to trade policy mat-
ters or negotiations that are within the legislative jurisdic-
tion of such committee; 
for use in connection with matters referred to in subsection (a). 
"(2) Information other than that described in paragraph (1), 
and advice submitted in confidence by the private sector or non-
Federal government to officers or employees of the United 
States, to the Advisory Committee for Trade Policy and Negotia-
tions, or to any advisory committee established under subsec-
102 STAT. 1268 
PUBLIC LAW 100-418—AUG. 23, 1988 
tion (c), in connection with matters referred to in subsection (a), 
may be disclosed upon request to— 
"(A) the individuals described in paragraph (1); and 
"(B) the appropriate advisory committee established 
under this section. 
"(3) Information submitted in confidence by officers or 
employees of the United States to the Advisory Committee for 
Trade Policy and Negotiations, or to any advisory committee 
established under subsection (c), may be disclosed in accordance 
with rules issued by the United States Trade Representative 
and the Secretaries of Commerce, Labor, Defense, Agriculture, 
or other executive departments, as appropriate, after consulta-
tion with the relevant advisory committees established under 
subsection (c). Such rules shall define the categories of informa-
tion which require restricted or confidential handling by such 
committee considering the extent to which public disclosure of 
such information can reasonably be expected to prejudice the 
development of trade policy, priorities, or United States nego-
tiating objectives. Such rules shall, to the maximum extent 
feasible, permit meaningful consultations by advisory commit-
tee members with persons affected by matters referred to in 
subsection (a). 
"(h) ADVISORY COMMITTEE SUPPORT.—The United States Trade 
Representative, and the Secretaries of Commerce, Labor, Defense, 
Agriculture, the Treasury, or other executive departments, as appro-
priate, shall provide such staff, information, personnel, and adminis-
trative services and assistance to advisory committees established 
under subsection (c) as such committees may reasonably require to 
cany out their activities, 
"(i) 
CONSULTATION WITH ADVISORY COMMITTEES; PROCEDURES; 
NONACCEPTANCE OF COMMITTEE A D V I C E OR RECOMMENDATIONS.—It 
shall be the responsibility of the United States Trade Representa-
tive, in conjunction with the Secretaries of Commerce, Labor, Agri-
culture, the Treasury, or other executive departments, as appro-
priate, to adopt procedures for consultation with and obtaining 
information and advice from the advisory committees established 
under subsection (c) on a continuing and timely basis. Such consulta-
tion shall include the provision of information to each advisory 
committee as to— 
"(1) significant issues and developments; and 
"(2) overall negotiating objectives and positions of the United 
States and other parties; 
with respect to matters referred to in subsection (a). The United 
States Trade Representative shall not be bound by the advice or 
recommendations of such advisory committees, but shall inform the 
advisory committees of significant departures from such advice or 
recommendations made. In addition, in the course of consultations 
with the Congress under this title, information on the advice and 
information provided by advisory committees shall be made avail-
able to congressionsd advisers. 
President of U.S. 
"(j) PRIVATE ORGANIZATIONS O
R GROUPS.—In addition to any ad-
visory committee established under this section, the President shall 
provide adequate, timely and continuing opportunity for the submis-
sion on an informal basis (and, if such information is submitted 
under the provisions of subsection (g), on a confidential basis) by 
private organizations or groups, representing government, labor, 
industry, agriculture, small business, service industries, consumer 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1269 
interests, and others, of statistics, data and other trade information, 
as well as policy recommendations, pertinent to any matter referred 
to in subse^ion (a). 
"(k) SCOPE OP PARTICIPATION BY MEMBERS OF ADVISORY COMMIT-
TEES.—Nothing contained in this section shall be construed to au-
thorize or permit any individual to participate directly in any 
n^otiation of any matters referred to in subsection (a). To the 
maximum extent practicable, the members of the committees estab-
lished under subsections O
?
) and (c), and other appropriate parties, 
shall be informed and consulted before and during any such n^otia-
tions. They may be designated as advisors to a negotiating del^a-
tion, and may be permitted to participate in international meetings 
to the extent the head of the United States del^ation deems 
appropriate. However, they may not speak or n^otiate for the 
United States. 
"(1) ADVISORY COBIMITTEES ESTABLISHED BY DEPARTMENT OF AGRI-
CULTURE.—^The provisions of title XVHI of the Food and Agriculture 
Act of 1977 (7 U.S.C. 2281 et seq.) shall not apply to any advisory 
committee established under subsection (c). 
"(m) NON-FEDERAL GOVERNMENT DEFINED.—As used in this sec-
tion, the term 'non-Federal government' means— 
"(1) any State, territory, or possession of the United States, or 
the ENstrict of Columbia, or any political subdivision thereof; or 
"(2) any agency or instrumentality of any entity described in 
paragraph (1).". 
SEC. 1632. CONGRESSIONAL UAISON REGARDING TRADE POLICY AND 
AGREEMENTS. 
Section 161 of the Trade Act of 1974 (19 U.S.C. 2211) is amended to 
read as follows: 
'^EC. 161. CONGRESSIONAL 
ADVISERS 
FOR 
TRADE 
POLICY 
AND 
NEGOTIATIONS. 
"(a) SELECTION.— 
"(1) At the b^inning of each regular session of Congress, the 
Speaker of the House of Representatives, upon the rec-
ommendation of the chairman of tiie Committee on Wajrs and 
Means, shall select 5 members (not more than 3 of whom are 
members of the same political party) of such committee, and the 
President pro tempore of the Senate, upon the recommendation 
of the chmrman of the Committee on Finance, shall select 5 
members (not more than 3 of whom are members of the same 
political party) of such committee, who shall be designated 
congressional advisers on trade policy and n^otiations. They 
shall provide advice on the development of trade policy ana 
priorities for the implementation thereof. They shall aLso be 
accredited by the United States Trade Representative on behalf 
of the President as official advisers to the United States del^a-
tions to international conferences, meetings, and n^otiating 
sessions relating to trade agreements. 
"(2XA) In addition to the advisers designated under para-
graph (1) from the (Dommittee on Ways and Means and the 
Committee on Finance— 
"(i) the Speaker of the House may select additional mem-
bers of the House, for designation as congressional advisers 
regarding specific trade policy matters or n^otiations, 
from any other committee of the House or joint committee 
102 STAT. 1270 
PUBLIC LAW 100-418—AUG. 23, 1988 
of Congress that has jurisdiction over legislation likely to be 
• 
affected by such matters or negotiations; and 
"(ii) the President pro tempore of the Senate may select 
additional members of the Senate, for designation as 
congressional advisers regarding specific trade policy mat-
ters or negotiations, from any other committee of the 
Senate or joint committee of Congress that has jurisdiction 
over legislation likely to be affected by such matters or 
negotiations. 
Members of the House and Senate selected as congressional 
advisers under this subparagraph shall be accredited by the 
United States Trade Representative. 
"(B) Before designating any member under subparg^aph (A), 
the Speaker or the President pro tempore shall consult with— 
"(i) the chairman and ranking member of the Committee 
on Ways and Means or the Committee on Finance, as 
appropriate; and 
"(ii) the chairman and ranking minority member of the 
committee from which the member will be selected. 
"(C) Not more than 3 members (not more than 2 of whom are 
members of the same political party) may be selected under this 
paragraph £is advisers from any committee of Congress. 
"(b) BRIEFING.— 
"(1) The United States Trade Representative shall keep each 
official adviser designated under subsection (a)(1) currently in-
formed on matters affecting the trade policy of the United 
States and, with respect to possible agreements, negotiating 
, 
objectives, the status of negotiations in progress, and the nature 
of any changes in domestic law or the administration thereof 
which may be recommended to Congress to carry out any trade 
agreement or any requirement of, amendment to, or rec-
ommendation under, such agreement. 
"(2) The United States Treide Representative shall keep each 
official adviser designated under subsection (aX2) currently in-
formed regarding the trade policy matters and negotiations 
i 
with respect to which the adviser is designated. 
"(3XA) The chairmen of the Committee on Ways and Means 
and the Committee on Finance may designate members (in 
addition to the official advisers under subsection (aXD) and staff 
members of their respective committees who shall have access 
to the information provided to official advisers under paragraph 
(1). 
"(B) The Chairman of any committee of the House or Senate 
1 
or any joint committee of Congress from which official advisers 
are selected under subsection (aX2) may designate other mem-
bers of such committee, and staff members of such committee, 
who shall have access to the information provided to official 
advisers under paragraph (2). 
"(c) COMMITTEE CONSULTATION.—The United States Trade Rep-
resentative shall consult on a continuing basis with the Committee 
on Ways and Means of the House of Representatives, the Committee 
on Finance of the Senate, and the other appropriate committees of 
the House and Senate on the development, implementation, and 
administration of overall trade policy of the United States. Such 
consultations shall include, but are not limited to, the following 
elements of such policy: 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1271 
"(1) The principal multilateral and bilateral negotiating objec-
tives and the progress being made toward their achievement. 
"(2) The implementation, administration, and effectiveness of 
, recently concluded multilateral and bilateral trade agreements 
and resolution of trade disputes. 
"(3) The actions taken, and proposed to be taken, under the 
trade laws of the United States and the effectiveness, or antici-
pated effectiveness, of such actions in achieving trade policy 
objectives. 
"(4) The important developments and issues in other areas of 
trade for which there must be developed proper policy response. 
When necessary, meetings shall be held with each Committee in 
executive session to review matters under negotiation.". 
PART 
3—ANNUAL 
REPORTS 
AND 
NATIONAL 
TRADE 
POLICY 
AGENDA 
SEC. 1641. REPORTS AND AGENDA. 
Section 163 of the Trade Act of 1974 (19 U.S.C. 2213) is amended to 
read as follows: 
"SEC. 163. REPORTS. 
"(a) 
ANNUAL REPORT ON TRADE AGREEMENTS PROGRAM AND 
NATIONAL TRADE POUCY AGENDA.— 
"(1) The President shall submit to the Congress during each President of U.S. 
calendar year (but not later than March 1 of that year) a report 
on— 
"(A) the operation of the trade agreements program, and 
the provision of import relief and adjustment assistance to 
workers and firms, under this Act during the preceding 
calendar year; and 
"(B) the national trade policy agenda for the year in 
which the report is submitted. 
"(2) The report shall include, with respect to the matters 
referred to in paragraph (IXA), information regarding— 
"(A) new trade negotiations; 
"(B) changes made in duties and nontariff barriers and 
other distortions of trade of the United States; 
"(C) reciprocal concessions obtained; 
"(D) changes in trade agreements (including the incorpo-
ration therein of actions taken for import relief and com-
pensation provided therefor); 
"(E) the extension or withdrawal of nondiscriminatory 
treatment by the United States with respect to the producte 
of foreign countries; 
"(F) the extension, modification, withdrawal, suspension, 
or limitation of preferential treatment to exports of devel-
oping countries; 
"(G) the results of actions to obtain the removal of foreign 
trade restrictions (including discriminatory restrictions) 
against United States exports and the removal of foreign 
practices which discriminate against United States service 
industries (including transportation and tourism) and 
investment; 
"(H) the measures being taken to seek the removal of 
other significant foreign import restrictions; 
102 STAT. 1272 
PUBLIC LAW 100-418—AUG. 23, 1988 
Classified 
information. 
President of U.S. 
"(I) each of the referrals made under section 141(dXlXB) 
and any action taken with respect to such referral; 
"(J) other information relating to the trade agreements 
p n ^ a m and to the agreements entered into thereunder; 
and 
"(K) the number of applications filed for adjustment 
assistance for workers and firms, the number of such 
applications which were approved, and the extent to which 
adjustment assistance has been provided under such 
approved applications. 
"(3XA) The national trade policy agenda required under para-
graph (IXB) for the year in which a report is submitted shall be 
in the form of a statement of— 
"(i) the trade policy objectives and priorities of the United 
States for the year, and the reasons therefor; 
"(ii) the actions proposed, or anticipated, to be under-
taken during the year to achieve such objectives and prior-
ities, including, but not limited to, actions authorized under 
the trade laws and negotiations with foreign countries; 
"(iii) £uay proposed l^islation necessary or appropriate to 
achieve any of such objectives or priorities; and 
"(iv) the progress that was made during the preceding 
year in achieving the trade policy objectives and priorities 
included in the statement provided for that year under this 
paragraph. 
"(B) The President may separately submit any information 
referred to in subparagraph (A) to the Congress in confidence if 
the President considers confidentiality appropriate. 
"(C) Before submitting the national trade policy agenda for 
any year, the President shall seek advice from the appropriate 
advisory committees established under section 135 and shall 
consult with the appropriate committees of the Congress. 
"(D) The United States Trade Representative (hereafter re-
ferred to in this section as the 'Trade Representative') and other 
appropriate officials of the United States Government shall 
consult periodically with the appropriate committees of the 
Congress regarding the annual objectives and priorities set 
forth in each national trade policy agenda with respect to— 
"(i) the status and results of the actions that have been 
undertaken to achieve the objectives and priorities; and 
"(ii) any development which may require, or result in, 
changes to any of such objectives or priorities. 
*(b) ANNUAL TRADE PROJECTION REPORT.— 
"(1) In order for the Congress to be informed of the impact of 
foreign trade barriers and macroeconomic factors on the bal-
ance of trade of the United States, the Trade Representative 
and the Secretary of the Treasury shall jointly prepare and 
submit to the Ck)mmittee on Finance of the Senate and the 
Committee on Ways and Means of the House of Representatives 
(hereafter referred to in this subsection as the 'Committees') on 
or before March 1 of each year a report which consists of— 
"(A) a review and analysis of— 
"(i) the merchandise balance of trade, 
"(ii) the goods and services balance of trade, 
"(iii) the balance on the current account, 
-' 
"(iv) the external debt position, 
"(v) the exchange rates. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1273 
"(vi) the economic growth rates, 
"(vii) the deficit or surplus in the fiscal budget, and 
"(viii) the impact on United States trade of market 
barriers and other unfair practices, 
of countries that are major trading partners of the United 
States, including, as appropriate, groupings of such 
countries; 
"(B) projections for each of the economic factors described 
in suljparagraph (A) (except those described in clauses (v) 
and (viii)) for each of the countries and groups of countries 
referred to in subparagraph (A) for the year in which the 
report is submitted and for the succeeding year; and 
"(C) conclusions and recommendations, based upon the 
projections referred to in subparagraph (B), for policy 
changes, including trade policy, exchange rate policy, fiscal 
policy, and other policies that should be implemented to 
improve the outlook. 
"(2) To the extent that subjects referred to in paragraph (1) 
(A), (B), or (C) are covered in the national trade policy agenda 
required under subsection (aXlXB) or in other reports required 
by this Act or other law, the Trade Representative and the 
Secretary of the Treasury may, as appropriate, draw on the 
information, analysis, and conclusions, if any, in those reports 
for the purposes of preparing the report required by this subsec-
tion. 
"(3) The Trade Representative and the Secretary of the Treas-
ury shall consult with the Chairman of the Board of Governors 
of the Federal Reserve System in the preparation of each report 
required under this subsection. 
"(4) The Trade Representative and the Secretary of the Treas-
ury may separately submit any information, analysis, or conclu-
sion referred to in paragraph (1) to the Committees in 
confidence if the Trade Representative and the Secretary con-
sider confidentiality appropriate. 
"(5) After submission of each report required under para-
graph (1), the Trade Representative and the Secretary of the 
Treasury shall consult with each of the Committees with re-
spect to the report. 
"(c) ITC REPORTS.—The United States International 
Trade 
Commission shall submit to the Congress, at least once a year, a 
factual report on the operation of the trade agreements program.". 
Subtitle G—Tariff Provisions 
PART 1—AMENDMENTS TO THE TARIFF 
SCHEDULES OF THE UNITED STATES 
SEC. 1701. REFERENCE. 
Whenever in this part an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a schedule, headnote, item, 
the Appendix, or other provision, the reference shall be considered 
to be made to a schedule, headnote, item, the Appendix, or other 
provision of the Tariff Schedules of the United States. 
102 STAT. 1274 
PUBLIC LAW 100-418—AUG. 23, 1988 
Subpart A—Permanent Changes in Tariff Treatment 
SEC. 17)1. BROAD 
WOVEN FABRICS OF MAN-MADE FIBERS. 
(a) IN GENERAL.—Subpart E of part 3 of schedule 3 is amended by 
striking out item 338.50 and inserting the following new items with 
the article description for item 338.60 having the same degree of 
indentation as the article description for item 338.40: 
338.60 
338.70 
338.80 
Containing 85% or more by 
weight 
of 
continuous 
man-made fibers 
Other: 
Weighing not more than 
5 oz. per square yard 
Other 
17% ad val. 
17% ad val. 
17% ad val. 
1
.
5
% ad val. 
(I) 
i.5% ad val. 
(I) 
1
.
5
% ad val. 
(I) 
81% ad val. 
81% ad val. 
81% ad val. 
0?) STAGED RATE REDUCTION.—Any staged rate reduction of a rate 
of duty set forth in item 338.50 of the Tariff Schedules of the United 
States (as in effect before the date of enactment of this Act) that WEIS 
proclaimed by the President before the date of enactment of this Act 
and would otherwise take effect after the date of enactment of this 
Act shall apply to the corresponding rates of duty set forth in items 
338.60, 338.70, and 338.80 of such Schedules. 
SEC. 1712. NAPHTHA AND MOTOR FUEL BLENDING STOCKS. 
Part 10 of schedule 4 is amended— 
(1) by amending headnote 1 by inserting "motor fuel blending 
stocks," immediately after "except"; 
(2) by amending headnote 2— 
(A) by striking out "and" at the end of subdivision (a); 
(B) by striking out the period at the end of subdivision (b) 
and inserting "; and"; and 
(C) by adding at the end thereof the following: 
"(c) 'Motor fuel blending stock' (item 475.27) means any product 
(except naphthas provided for in item 475.35) derived primarily from 
petroleum, shale oil, or natural gas, whether or not containing 
additives, to be used for direct blending in the manufacture of motor 
fuel."; 
(3) by inserting in numerical sequence the following new item 
with an article description having the same degree of indenta-
tion as the article description for item 475.30: 
I 475.27 
I Motor fuel blending stocks ....| 1.25^ per gal. 
2M per gal. 
(4) by amending 475.30 by striking out "fuel)" and inserting 
"fuel or motor fuel blending stocks)"; and 
(5) by amending 475.35 by striking out "fuel)" and inserting in 
lieu thereof "fuel or motor fuel blending stocks)". 
SEC. 1713. WATCHES AND WATCH COMPONENTS. 
Headnote 4 of subpart E of part 2 of schedule 7 is amended to read 
as follows: 
"4. Special Marking Requirements: Any movement or case pro-
vided for in this subpart, whether imported separately or attached 
to any article provided for in this subpart, shall not be permitted to 
be entered unless conspicuously and indelibly marked by cutting. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1275 
die-sinking, engraving, stamping, or mold-marking (either indented 
or raised), as specified below: 
"(a) Watch movements shall be marked on one or more of the 
bridges or top plates to show— 
"(i) the name of the country of manufacture; 
"(ii) the name of the manufacturer or purchaser; and 
"(iii) in words, the number of jewels, if any, serving a 
mechanical purpose as frictional bearings. 
"(b) Clock movements shall be marked on the most visible 
part of the front or back plate to show— 
"(i) the name of the country of manufacture; 
"(ii) the name of the manufacturer or purchaser; and 
"(iii) the number of 
jewels, if any. 
"(c) Watch cases shall be marked on the inside or outside of 
the back case to show— 
"(i) the name of the country of manufacture; and 
"(ii) the name of the manufacturer or purchaser. 
"(d) C;iock cases provided for in this subpart shall be marked 
on the most visible part of the outside of the back to show the 
name of the country of manufacture.". 
SEC. 1714. SLABS OF IRON OR STEEL. 
Headnote 3(c) to subpart B of part 2 of schedule 6 is amended by 
striking out "and not over 6 inches". 
SEC. 1715. CERTAIN WORK GLOVES. 
(a) Headnote 5(a) to schedule 3 is amended by striking out "(except 
subpart A)" and inserting in lieu thereof "(except subparts A and 
O". 
(b) Headnote 1 to subpart C of part 1 of schedule 7 of the Tariff 
Schedules of the United States is amended— 
(1) by striking out "and" at the end of subdivision (b), 
(2) by striking out the period at the end of subdivision (c) and 
inserting in lieu thereof "; and", and 
(3) by adding after subdivision (c) the following new 
subdivision: 
"(d) gloves which are— 
'(i) other than gloves with fourchettes, and 
"(ii) constructed of a textile fabric coated, filled, impregnated, 
• or laminated, in whole or in part, with rubber or plastics and 
cut-and-sewn, 
shall be r^arded as gloves of textile materials.". 
SEC. 1716. DUTY-FREE IMPORTATION OF HATTER'S FUR 
(a) IN GENERAL.—Subpart D of part 15 of schedule 1 is amended— 
(1) by striking out "use, and carroted furskins" in item 186.20 
and inserting in lieu thereof "use", 
(2) by striUng out "15% ad val." in item 186.20 and inserting 
in lieu thereof "Free", 
(3) by striking out "Free (A,E) 4.8% ad val. (0" in item 186.20, 
and 
(4) by inserting after item 186.20 the following new item with 
the article description having the same d^ree of indentation as 
the article description in item 186.20: 
186.22 
Carroted furskins. 
15% ad. val. 
Free (A.E) 
4.8% ad val. 
(I) 
35% ad val. 
102 STAT. 1276 
PUBLIC LAW 100-418—AUG. 23, 1988 
(b) STAGED RATE REDUCTION.—Any staged rate reduction of a rate 
of duty set forth in item 186.20 of the Tariff Schedules of the United 
States that was proclaimed by the President before the date of 
enactment of this Act and would otherwise take effect after the date 
of enactment of this Act shall apply to the corresponding rate of 
duty set forth in item 186.22 of such Schedules. 
SEC. 1717. EXTRACORPOREAL SHOCK WAVE LITHOTRIPTERS. 
Item 709.15 is amended by inserting "other than extracorporeal 
shock wave lithotripters," before "and". 
SEC. 1718. SALTED AND DRIED PLUMS. 
(a) IN GENERAL.—Subpart B of part 9 of schedule 1 is amended by 
striking out item 149.28 and inserting in lieu thereof the following 
items with the article descriptions having the same degree of 
indentation as the article description in item 149.26: 
149.27 
149.29 
Soaked in brine and dried 
Otherwise 
prepared 
or 
preserved 
2^ per lb. 
17.5% ad val. 
Free (E,I) 
Free(E) 
5.6% ad 
val. (I) 
2i per lb. 
35% ad val 
(b) STAGED RATE REDUCTION.—Any staged rate reduction of a rate 
of duty set forth in item 149.28 of the Tariff Schedules of the United 
States that was proclaimed by the President before the date of 
enactment of this Act and would otherwise take effect after the date 
of enactment of this Act shall apply to the corresponding rates of 
duty set forth in items 149.27 and 149.29 of such Schedules, 
SEC. 1719. TELEVISION APPARATUS AND PARTS. 
(a) PERMANENT TREATMENT.—The headnotes to part 5 of schedule 
6 are amended— 
(1) by striking out "assembled," in subparagraph (a) of head-
note 3 and inserting in lieu thereof "assembled in its cabinet,"; 
(2) by redesignating headnotes 4, 5, and 6 as headnotes 5, 6, 
and 7, respectively; and 
(3) by inserting after headnote 3 the following new headnote: 
"4. Picture tubes imported in combination with, or incorporated 
into, other articles are to be classified in items 687.35 through 
687.44, inclusive, unless they are— 
"(i) incorporated into complete television receivers, as defined 
in headnote 3; 
"(ii) incorporated into fully assembled units such as word 
processors, ADP terminals, or similar articles; 
"(iii) put up in kits containing all the parts necessary for 
assembly into complete television receivers, as defined in head-
note 3; or 
"(iv) put up in kits containing all the parts necessary for 
assembly into fully assembled units such as word processors, 
ADP terminals, or similar articles.". 
(b) TEMPORARY TREATMENT.— 
(1) Subpart B of part 1 of the Appendix is amended by 
inserting in numerical sequence the following new item: 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1277 
912.16 
Television picture 
tubes, color, 
having a video 
display diagonal 
of less than 12 
inches (provided 
for in item 
687.35, part 5, 
schedule 6) 
Free 
No change 
On or 
before 
12/31/90 
(2) Subpart B of part 1 of the Appendix is amended by 
inserting in numerical sequence the following new item: 
912.19 
Television picture 
tubes, color, 
having a video 
display diagonal 
of 30 inches and 
over (provided 
for in item 
687.35, part 5, 
schedule 6) 
Free 
No change 
On or 
before 
9/30/88 
SEC. 1720. CASEIN. 
(a) HUMAN FOOD AND ANIMAL FEED USE.—Subpart D of part 4 of 
schedule 1 is amended by adding at the end thereof the following 
new items with the superior heading having the same degree of 
indentation as the article description in item 118.45: 
118.50 
118.55 
118.60 
Casein, 
caseinates, 
and 
dried milk: 
Dried milk (described in 
items 
115.45, 
115.50, 
115.55, 
and 
118.05) 
which contains not over 
5.5 percent by weight 
of butterfat and which 
is mixed with other in-
gredients, including but 
not limited to sugar, if 
such mixtures contain 
over 16 percent milk 
solids by weight, are ca-
pable of being further 
processed 
or 
mixed 
with similar or other 
ingredients and are not 
prepared for marketing 
to the retail consumers 
in the identical form 
and package in which 
imported 
Other 
Free 
1.3^ per lb. 
0.2^ per lb. 
Free (A,E,I) 
Free (A,E,I) 
fkM 
5.5t per lb. 
5.5< per lb. 
(b) INDUSTRIAL USE.—Subpart B of part 13 of schedule 4 is 
amended by striking out items 493.12, 493.14, and 493.17 and the 
superior heading thereto. 
SEC. 1721. TARIFF TREATMENT OF CERTAIN TYPES OF PLYWOOD. 
Headnote 1 of part 3 of schedule 2 is amended— 
102 STAT. 1278 
PUBLIC LAW 100-418—AUG. 23, 1988 
(1) in paragraph (b) by inserting immediately before the semi-
colon at the end thereof the following: "or any edge of which has 
been tongued, grooved, lapped, or otherwise worked"; 
(2) in paragraph (c) by inserting immediately before the semi-
colon at the end thereof the following: "or any edge of which has 
been tongued, grooved, lapped, or otherwise worked"; and 
(3) in paragraph (e) by inserting before "chiefly" the follow-
ing: "other than pl)^wood, wood-veneer panels, or cellular 
panels,". 
SEC. 1722. IMPORTATION OF FURSKINS. 
Headnote 4 to subpart B of part 5 of schedule 1 is repealed. 
SEC. 1723. GRAPEFRUIT. 
Subpart A of part 12 of schedule 1 is amended— 
(1) by inserting after item 165.29 the following new items with 
a superior heading having the same degree of indentation as 
item 165.25: 
165.31 
165.34 
and 
Grapefruit: 
Not concentrated and not 
made 
from 
a 
juice 
having a degree of con-
centration 
of 1.5 or 
more 
(£is 
determined 
before correction to the 
nearest 0.5 degree) 
Other 
20<t per gal. 
35(t per gal. 
Free (E) 
Free (E) 
70<t per gal. 
70^ per gal. 
(2) by redesignating items 165.32 and 165.36 as items 165.37 
and 165.38, respectively. 
SEC. 1724. SILICONE RESINS AND MATERIALS. 
Part 4 of schedule 4 is amended— 
(1) by amending subpart A— 
(A) by striking out "provided for in part IC" in headnote 
1 and inserting ", other than silicones, provided for in part 
1", and 
(B) by amending headnote 2 to read as follows: 
"2. (a) For purposes of this subpart, the term 'synthetic plastics 
materials'— 
"(i) embraces products formed by the condensation, polym-
erization, or copolymerization of organic chemicals and to which 
an antioxidant, color, dispersing agent, emulsifier, extender, 
filler, pesticide, plasticizer, or stabilizer may have been added; 
and 
"(ii) includes silicones (including fluids, resins, elastomers, 
and copolymers) whether or not such materials are solid in the 
finished articles. 
"(b) The products referred to in subdivision (a) contain as an 
essential ingredient an organic substance of high molecular weight; 
and, except as provided in subdivision (a)(ii), are capable, at some 
stage during processing into finished articles, of being molded or 
shaped by flow and are solid in the finished article. The term 
includes, but is not limited to, such products derived from esters of 
acrylic or methacrylic acid; vinyl acetate, vinyl chloride resins, 
polyvinyl alcohol, acetals, butyral, formal resins, poljrvinyl ether 
and ester resins, and polyvinylidene chloride resins; urea and amino 
resins; polyethylene, polypropylene, and other polyalkene resins; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1279 
siloxanes, silicones, and other organo-silicon resins; alkyd, acrylo-
nitrile, allyl, and formaldehyde resins, and cellulosic plastics mate-
rials. These synthetic plastics materials may be in solid, semi-solid, 
or liquid condition such as flakes, powders, pellets, granules, 
solutions, emulsions, and other basic crude forms not further 
processed.", 
(C) by inserting after item 445.54 the following new item 
with the article description having the same degree of 
indentation as the article description for item 445.54: 
445.55 
Silicone resins and materi-
als 
3% ad val. 
Free (A,E,I) 
25% ad val. 
and 
(D) by redesignating item 445.56 as item 445.60; and 
(2) by amending headnote 2 to subpart B by adding at the end 
thereof the following: 
"(c) For purposes of the Tariff Schedules, the term 'rubber' does 
not include silicones.". 
Subpart B—Temporary Changes in Tariff Treatment 
SEC. 1731. COLOR COUPLERS AND COUPLER INTERMEDIATES. 
Subpart B of part 1 of the Appendix is amended— 
(1) by inserting ", but excluding 6,7-dihydroxy-2-naphthalene 
sulfonic acid sodium salt provided for in item 403.57," after 
"schedule 4" and before the parenthesis in item 907.10; and 
(2) by striking out "9/30/85" in each of items 907.10 and 
907.12 and inserting in lieu thereof "12/31/90". 
SEC. 1732. POTASSIUM 4-SULFOBENZOATE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
906.26 
p-Sulfobenzoic 
acid, potassium 
salt (provided 
for in item 
404.28, part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 
1733. 
2,2'-OXAMIDOBIS[ETHYL-3-(3,5-DI TERT.BUTYL-4-HYDROXY-
PHENYDPROPIONATE]. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following item: 
907.09 
2,2'-Oxamidobis-
[ethyl-3-(.3,5-di-
tert-butyl-4-
hydroxyphenyl) 
propionate] 
(provided for in 
item 405.34, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1734. 2,4-DICHLORO-5-SULFAMOYLBENZOIC ACID. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
102 STAT. 1280 
PUBLIC LAW 100-418—AUG. 23, 1988 
906.48 
2,4-Dichloro-5-
sulfamoylben-
zoic acid 
(provided for in 
item 406.56, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1735. DERIVATIVES 
OF 
N-[4.(2-HYDROXY.3-PHENOXYPROPOXY)-
PHENYLIACETAMIDE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
907.11 
Mixtures 
containing 
derivatives of 
N-I4-(2-hydroxy-
3-phenoxypro-
poxy)phenyI] 
acetamide 
(provided for in 
item 407.19, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1736. CERTAIN KNITWEAR FABRICATED IN GUAM. 
(a) IN GENERAL.—Subpart B of part 1 of the Appendix is amended 
by inserting in numerical sequence the following new item: 
905.45 
Sweaters that— 
(i) do not 
contain 
foreign 
materials in 
excess of the 
percentage of 
total value 
limitation 
contained in 
general 
headnote 3(a), 
and 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1281 
(ii)are 
assembled in 
Guam, 
exclusively by 
United States 
citiiens, 
nationals, or 
resident 
ali«is,by 
joining 
together (by 
completely 
sewing, 
looping, 
linking, or 
other means 
of attaching) 
at least 5 
otherwise 
completed 
nugor knitrto-
component 
parts of 
foreign 
origin, 
if entered bdbre 
the aggregate 
quantity of such 
sweaters that is 
entered during 
any 12-month 
period after 
October 31, 
1985, exceeds 
the duty-free 
quantity for 
that period 
Free 
On or 
brfore 
10/31/92 
(b) DUTY-FREE QUANTITY.—^The headnotes to subpart B of part 1 of 
the Appendix are amended by adding at the end tiiereof the follow-
ing new headnote: 
"3. For purposes of item 905.45, the term 'duty-free quantity' 
means— 
"(a) for the 12-month period ending October 31, 1986, 161,600 
dozen; and 
"(b) for any 12-month period thereafter, an amount equal to 
101 percent of the duty-free quantity for the preceding 12-month 
period.". 
SEC 1737.3,5-DINITRO-O-TOLUAMIDE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
102 STAT. 1282 
PUBLIC LAW 100-418—AUG. 23, 1988 
906.42 
3,5-Dinitro-o-
toluamide 
(provided for in 
item 411.95, 
part IC, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1738. SECONDARY-BUTYL CHLORIDE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
907.55 
Secondary-butyl 
chloride 
(provided for in 
item 429.47, 
part 2D. 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1739. CERTAIN NONBENZENOID VINYL ACETATE-VINYL CHLORIDE-
ETHYLENE TERPOLYMERS. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following item: 
907.83 
Nonbenzenoid 
vinyl acetate-
vinyl chloride-
ethylene 
terpolymers, 
containing by 
weight less 
than 50 percent 
derivatives of 
vinyl acetate 
(provided for in 
item 445.48, 
part 4A, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1740. DUTY-FREE ENTRY OF PERSONAL EFFECTS AND EQUIPMENT 
OF PARTICIPANTS AND OFFICIALS INVOLVED IN THE lOTH 
PAN AMERICAN GAMES. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1283 
915.20 
Personal effects of 
aliens who are 
participants in 
or officials of 
the Tenth Pan 
American 
Games, or who 
are accredited 
members of 
delegations 
thereto, or who 
are members of 
the immediate 
families of any 
of the foregoing 
persons, or who 
are their 
servants; 
equipment for 
use in 
connection with 
such games; 
and other 
related articles 
as prescribed in 
regulations 
issued by the 
Secretary of the 
Treasury 
Free 
FVee 
On or 
before 
9/30/87 
SEC. 1741. CARDING AND SPINNING MACHINES. 
(a) IN GENERAL.—Subpart B of part 1 of the Appendix is amended 
by inserting in numerical sequence the following new item: 
912.03 
Carding and 
spinning 
machines 
specially 
designed for 
wool, other 
than machines 
specially 
designed for the 
manufacture of 
combed wool 
(worsted) yams 
(provided for in 
item 670.04, 
part4E, 
schedule 6) 
Free 
No change 
On or 
before 
12/31/90 
(b) PARTS.—The headnote to subpart E of part 4 of schedule 6 is 
amended by striking out "item 912.04" each place it appears and 
inserting m lieu thereof "item 912.03 or 912.04". 
SEC. 1742. DICOFOL AND CERTAIN MIXTURES. 
(a) DicoFOL.—Item 907.15 of the Appendix is amended to read as 
follows: 
102 STAT. 1284 
PUBLIC LAW 100-418—AUG. 23, 1988 
907.15 
l.l-Bis(4-
chlorophenyl)-
2.2,2-
trichloroethanol 
(dicofol) 
(provided for in 
item 408.28, 
part IC, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
O
t
)
) MIXTURES OF DICOFOL AND APPUCATION ADJUVANTS.—Subpart 
B of part 1 of the Appendix is amended by inserting in numerical 
sequence the following new items: 
907.27 
Mixtures of 1,1-
bis(4-
chlorophenyl)-
2,2,2-
trichloroethanol 
(dicofol) and 
application 
adjuvants 
(provided for in 
item 408.36, 
part IC, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1743. SILK YARN. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
905.25 
Yams of silk 
(provided for in 
item 308.51, 
part ID, 
schedule 3) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1744. TERFENADONE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
907.48 
UU1.1-
Dimethylethyl)-
phenylM-
(hydroxydi-
phenyl-methyl-
l-piperidinyl)-l-
butanone 
(provided for in 
item 406.42, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SBC. 1745. FLUAZIFOP-P-BUTYL. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1285 
907.49 
Butyl 2^4<5-
trifluoromethyl-
2-pryidinylozy>-
phenoxy]-
propanoate 
(provided for in 
item 408.23, 
part IC, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1746. PARTS OF INDIRECT PROCESS ELECTROSTATIC COPYING 
MACHINES. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
912.18 
Parts, not 
including 
photoreceptors 
or assemblies 
containing 
photoreceptors, 
of indirect 
process 
electrostatic 
copying 
machines, 
which machines 
reproduce the 
original image 
onto the copy 
material by 
electrostatic 
transference to 
and from an 
intermediate 
(provided for in 
item 676.56, 
part4G, 
schedule 6) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1747. EXTRACORPOREAL SHOCK WAVE LITHOTRIPTERS IMPORTED 
BY NONPROFIT INSTITUTIONS. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
912.24 
Extracorporeal 
shock wave 
lithotripters 
imported by 
nonprofit 
hospitals and 
research or 
educational 
institutions 
(provided for in 
item 709.17, 
part2B, 
schedule 7) 
Free 
No change 
On or 
before 
12/31/87 
102 STAT. 1286 
PUBLIC LAW 100-418—AUG. 23, 1988 
SEC. 1748. TRANSPARENT PLASTIC SHEETING. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
915.10 
Transparent 
plastic sheeting 
containing 30% 
or more of lead, 
by weight 
(provided for in 
item 774.58, 
part 12D, 
schedule 7) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1749. DOLL WIG YARNS. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
905.30 
Grouped 
filaments and 
yams, not 
textured,in 
continuous 
form, colored, of 
nylon or 
modacrylic, 
whether or not 
curled of not 
less than 20 
denier per 
filament, to be 
used in the 
manufacture of 
wigs for dolls 
(provided for in 
item 309.32 and 
309.33, part IE, 
schedule 3, or 
item 389.62, 
part 7B, 
schedule 3) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1750. l-(3-SULF0PR0PYL) PYRIDINIUM HYDROXIDE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following item: 
« 
907.97 
l-(3-Sulfopropyl)-
pyridinium 
hydroxide 
(provided for in 
item 406.42, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
CHLORIDE 
SEC. 1751. POLYVINYLBENZYLTRIMETHYLAMMONIUM 
(CHOLESTYRAMINE RESIN USP). 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1287 
907.30 
Cross-linked 
polyvinyl-
benzyltri-
methyl-
ammonium 
chloride 
(cholestyramine 
resin USP) 
(provided for in 
item 412.71, 
part IC, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1752. METHYLENE BLUE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
907.81 
3,7-Bis-(dimethyl-
amino)-
phenazathio-
nium chloride 
(methylene 
blue) (provided 
for in item 
409.74, part IC, 
schedule 4 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1753. 3-AMINO-3-METHYL-1-BUTYNE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
907.53 
3-Amino-3-methyl-
1-butyne 
(provided for in 
item 425.52, 
part 2D, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1754. DICYCLOHEXYLBENZOTHIAZYLSULFENAMIDE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
906.45 
Dicyclohexylben-
zothiazyl-
sulfenamide 
(provided for in 
item 406.39, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
ACID AND 
SEC. 1755. D-6-METHOXY-a-METHYL-2-NAPHTHALENEACETIC 
ITS SODIUM SALT. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
102 STAT. 1288 
PUBLIC LAW 100-418—AUG. 23, 1988 
907.39 
d-6-Methoxy-a-
methyl-2-
naphthalenea-
cetic acid and 
its sodium salt 
(provided for in 
item 412.22, 
part IC, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1756. SUSPENSION OF DUTIES ON JACQUARD CARDS AND JACQUARD 
HEADS. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
912.46 
Jacquard cards 
and jacquard 
heads for 
power-driven 
weaving 
machines, and 
parts thereof 
(provided for in 
items 670.56 
and 670.74, 
respectively, 
part4E, 
schedule 6) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1757. 2^.BIS(4-CYANATOPHENYL). 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
907.44 
2,2-Bi8(4-
cyanatophenyl) 
(provided for in 
item 405.76, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1758. PHENYLMETHYLAMINOPYRAZOLE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
907.47 
Aminomethyl-
phenylpyrazole 
(Phenylmethy-
laminopyrazole) 
(provided for in 
item 406.36, 
part IB. 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1759. BENZETHONIUM CHLORIDE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1289 
907.52 
Benzethonium 
chloride 
(provided for in 
item 408.32, 
part IC, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1760. MANEB, ZINEB, MANCOZEB, AND METIRAM. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
907.60 
Maneb, zineb, 
mancozeb, and 
metiram 
(provided for in 
item 432.15, 
part2E, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1761. METALDEHYDE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
907.56 
Metaldehyde 
(provided for in 
item 427.58, 
part 2D, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1762. PARALDEHYDE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
907.57 
Paraldehyde, USP 
grade (provided 
for in item 
439.50, part 3C, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1763. CYCLOSPORINE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following item: 
907.78 
Cyclosporine 
(provided for in 
item 439.30, 
part3C, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1764. TEMPORARY REDUCTION OF DUTIES ON GLASS INNERS. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
102 STAT. 1290 
PUBLIC LAW 100-418—AUG. 23, 1988 
909.35 
Glass inners 
designed for 
vacuum flasks 
or for other 
vacuum vessels 
(provided for in 
items 545.31, 
545.34, 545.35, 
and 545.37, part 
3C, schedule 5).... 9% ad val. 
3.6% ad 
val. (I) 
Free (A.E) 
55% ad val. 
On or 
before 
12/31/90 
SEC. 1765. BENZENOID DYE INTERMEDIATES. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following items: 
907.84 
907.85 
907.86 
p-Toluenesulfonyl 
chloride 
(provided for in 
item 403.05, 
part IB, 
schedule 4) 
6-Hydroxy-2-
naphthalenesul-
fonic acid; 
6-Hydroxy-2-
naphthalenesul-
fonic acid, 
sodium salt; 
6-Hydroxy-2-
napthalenesul-
fonic acid, 
potassium 
salt; and 
6-Hydroxy-2-
napthalenesul-
fonic acid, 
ammonium salt 
(provided for 
in item 403.57, 
part IB, 
schedule 4) 
2,6-Dichloro-
benzaldehyde 
(provided for in 
item 403.81 part 
IB, schedule 4)... 
Free 
Free 
Free 
No change 
No change 
No change 
On or 
before 
12/31/90 
On or 
before 
12/31/90 
On or 
before 
12/31/90 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1291 
907.87 
907.88 
907.89 
907.90 
907.91 
8-Ainino-l-
naphthalenesul-
fonic acid and 
its salts 
(provided for in 
item 404.52, 
part IB, 
schedule 4).. 
5-Amino-2<p-
amino-anilino) 
benzene-sulfonic 
acid (provided 
for in item 
404.84, part IB, 
schedule 4) 
l-Amino-2,4-
dibromo-
anthraquinone; 
and a,a,a-Tri-
fluoro-o-
toluidine 
(provided for in 
item 404.88, 
part IB, 
schedule 4) 
l-Amino-8-
hydroxy-
3,6-
naphthalene-
disulfonic acid; 
4-Amino-5-
hydroxy-2,7-
naphthalene-
disulfonic acid, 
monosodium 
salt (H acid, 
monosodium 
salt); and 
2-Amino-5-
nitrophenol 
(provided for in 
item 404.92, 
part IB, 
schedule 4) 
l-Amino-4-bromo-
2-
anthraquinone-
sulfonic acid 
(Bromamine 
acid); 
Free 
Free 
Free 
Free 
No change 
No change 
No change 
No change 
On or 
before 
12/31/90 
On or 
before 
12/31/90 
On or 
before 
12/31/90 
On or 
before 
12/31/90 
102 STAT. 1292 
PUBLIC LAW 100-418—AUG. 23, 1988 
907.92 
907.93 
907.94 
l-Amino4-broino-
2-anthraquin-
one-sulfonic 
acid 
(Bromamine 
acid), sodium 
salt; 
6-Amino-4-
hydroxy-
2-naphthalene-
sulfonic acid 
(Gamma acid); 
3,3'-Dimethoxy-
benzidine 
(o-Dianisidine); 
3,3'-Dimethoxy-
benzidine 
dihydrochloride 
(o-Dianisidine 
dihydrochlor-
ide); and 
4-Methoxyaniline-
2-sulfonic acid 
(provided for in 
item 405.07, 
part IB, 
schedule 4) 
N-(7-Hydroxy-l-
naphthyl)-
acetamide 
(provided for in 
item 405.28, 
part IB, 
schedule 4) 
N.N-Bis(2-
cyanoethyl)-
aniline 
(provided for in 
item 405.60, 
part IB, 
schedule 4) 
6^3-Methyl-5-
oxo-1-
pyrazolyl)-l,3-
naphthalene-
disulfonic acid 
(Amino-J-
pyrazolone) 
(CAS No. 
7277-87-4); and 
3-Methyl-l-
phenyl-
5-pyrazolone 
Free 
Free 
Free 
No change 
No change 
No change 
On or 
before 
12/31/90 
On or 
before 
12/31/90 
On or 
before 
12/31/90 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1293 
907.95 
907.96 
(Methylphenyl-
pyrazolone) 
(provided for in 
item 406.36, 
part IB, 
schedule 4) 
2-Ainino-N-ethyI-
benzenesulfon-
anilide 
(provided for in 
item 406.49. 
part IB. 
schedule 4) 
m-Sulfamino-
pyrazolone 
m-Sulfamido-
phenylmethyl-
pyrazolone) 
(provided for in 
item 406.56. 
part IB, 
schedule 4) 
Free 
Free 
Free 
No change 
No change 
No change 
On or 
before 
12/31/90 
On or 
before 
12/31/90 
On or 
before 
12/31/90 
SEC. 1766. TUNGSTEN ORE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
911.96 
Tungsten ore 
(provided for in 
item 601.54, 
part 1. schedule 
6) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1767. CHLOR AMINO BASE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
907.07 
4-C3iloro-2,5-
dimethoxy 
aniline (CAS 
No. 6358-64-1) 
(provided for in 
item 405.01, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
at
D -» o
102 STAT. 1294 
PUBLIC LAW 100-418—AUG. 23, 1988 
SEC. 1768. NITRO SULFON B. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
908.01 
24(3-Nitrophenyl>-
sulfonyl]-
ethanol (CAS 
No. 41687-30-3) 
(provided for in 
item 406.00, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1769.4-CHLOR0.2.NITRO ANILINE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new items: 
908.02 
4-Chloro-2-nitro 
aniline (CAS 
No. 89-63-4) 
(provided for in 
item 404.88, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1770. AMINO SULFON BR. 
Subpsui B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
908.03 
3-(4'-aminobenz-
amido) phenyl-
beta-hydroxy-
ethyl sulfone 
(CAS No. 
20241-68-3) 
(provided for in 
item 406.00, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1771. ACET QUINONE BASE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
908.04 
2,5-Dimethoxy-
acetanilide 
(CAS 
No. 3467-59-2) 
(provided for in 
item 405.34, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1772. DIAMINO PHENETOLE SULFATE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1295 
908.05 
3,4-Diamino 
phenetole 
dihydrogen 
sulfate (CAS 
No. 85137-09-3) 
(provided for in 
item 405.09, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1773. CERTAIN 
MIXTURES 
OF 
CROSS-LINKED 
SODIUM 
POLYACRYLATE POLYMERS. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following item: 
907.72 
Mixtures of two 
or more organic 
compounds 
containing one 
or more cross-
linked sodium 
polyacrylate 
polymers 
(provided for in 
item 430.20, 
part 2D, 
schedule 4) 
Free 
No change 
On or 
before 
10/31/87 
SEC. 1774. N-ETHYL-0-TOLUENESULFONAMIDE 
ENESULFONAMIDE. 
AND 
N-ETHYL-P-TOLU-
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
908.07 
N-Ethyl-o-toluene-
sulfonamide, 
and 
N-Ethyl-p-toIuene-
sulfonamide 
(provided for in 
item 409.34, 
part IC, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1775. SETHOXYDIM. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
102 STAT. 1296 
PUBLIC LAW 100-418--AUG. 23, 1988 
906.36 
Mixtures of 2-{l-
(ethoxyimino)-
butyl>5-[2-
(ethylthio)-
propyl]-3-
hydroxy-2-
cyclohexen-1-
one 
(sethoxydim) 
and application 
adjuvants 
(provided for in 
item 407.19, 
part IB, or item 
430.20, part 2D 
of schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1776.3-ETHYLAMINO-P-CRESOL. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
906.34 
3-Ethylamino-p-
cresol (provided 
for in item 
404.96, part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1777. ROSACHLORIDE LUMPS. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
908.11 
l-Amino-2^hloro-
4-
hydroxyanthra-
quinone 
(provided for in 
item 405.07, 
part IB. 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1778. C-AMINES. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
906.59 
2-Amino-5-chloro-
4-methyl-
benzene-
sulfonic acid; 
and 
2-amino-5-chloro-
4-ethyIbenzene-
sulfonic acid 
(provided for in 
item 404.88 
and 404.90, 
respectively, 
part IB, sched-
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1297 
ule 4).. 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1779. DIAMINO IMID SP. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
906.60 
4,11-Diamino-lH-
naphth[2,3-f|i80-
indole-
1,3,5,10(2H)-
tetrone (CAS 
No. 128-81-4) 
(provided for in 
item 406.42, 
part IB, sched-
ule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1780. CERTAIN STUFFED TOY FIGURES. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
912.32 
SEC. 1781. 
StuHed or filled 
toy figures of 
animate objects 
(except dolls), 
not having a 
spring 
mechanism and 
not exceeding 
25 inches in 
either length, 
width, or height 
(provided for in 
items 737.30 
and 737.40, part 
5E. schedule 7)... 
KITCHENWARE 
CERAMICS. 
Free 
No change 
On or 
before 
12/31/90 
OF 
TRANSPARENT, 
NONGLAZED 
GLASS 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
102 STAT. 1298 
PUBLIC LAW 100-418—AUG. 23, 1988 
909.15 
Kitchenware of 
glass-ceramics, 
nonglazed, 
greater than 75 
percent by 
volume 
crystalline, 
containing 
lithium 
aluminosilicate, 
having a linear 
coefHcient of 
expansion not 
exceeding 
10x10"'per 
Kelvin within a 
temperature 
range of 0' C to 
300* C, 
transparent, 
haze-free, 
exhibiting 
transmittances 
of infrared 
radiations in 
excess of 75 
percent at a 
wavelength of 
2.5 microns 
when measured 
on a sample 3 
mm. in 
thickness, and 
containing beta-
quartz solid 
solution as the 
predominant 
crystal phase 
(provided for in 
item 534.97, 
part2C,. 
schedule 5) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1782. HOSIERY KNITTING MACHINES AND NEEDLES. 
(a) IN GENERAL.—Subpart B of part 1 of the Appendix is amended 
by inserting in numerical sequence the following new items: 
912.28 
Needles for 
knitting 
machines 
(provided for in 
items 670.58 
and 670.62, part 
4E, schedule 6)... Free 
No change 
On or 
before 
12/31/90 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1299 
912.29 
Hosiery knitting 
machines, 
single cylinder 
fine gauge and 
all double 
cylinder 
(provided for in 
items 670.16 
and 670.18, part 
4E, schedule 6).... Free 
'
•
"
"
•
• 
No change 
On or 
before 
12/31/90 
(b) REPEAL.—Items 912.08 and 912.09 are repealed. 
SEC. 1783. CERTAIN BICYCLE PARTS. 
(a) BICYCLE TIRES AND TUBES.—Subpart B of part 1 of the Appen-
dix is amended by inserting in numerical sequence the following 
new item: 
912.01 
Bicycle tires and 
tubes and rim 
strips, the 
foregoing of 
rubber or 
plastics 
(provided for in 
item 732.42, 
part 50, 
schedule 7, and 
items 772.48 
and 772.57, part 
12C, schedule 7).. Free 
No change 
On or 
before 
12/31/90 
0)) GENERATOR LIGHTING SETS.—Item 912.05 of the Appendix is 
amended by striking out "6/30/86" and inserting in lieu thereof 
"12/31/90". 
(c) BICYCLE CHAINS.—Subpart B of part 1 of the Appendix is 
amended by inserting in numerical sequence the following new 
item: 
Free 
No change 
On or 
before 
12/31/90 
912.06 
Bicycle chains 
(provided for in 
items 652.13 
and 652.15, part 
3F, schedule 6)... 
(d) OTHER BICYCLE PARTS.—Item 912.10 of the Appendix is 
amended— 
(1) by inserting "front and rear derailleurs, shift levers, cables 
and casings for derailleurs," immediately after "drum brakes,", 
(2) by striking out "multiple free wheel sprockets" and insert-
ing in lieu thereof "free wheel sprockets", 
(3) by inserting "and" after "frame lugs,", 
(4) by striking out ", including cable or inner wire for caliper 
brakes and casing therefor, whether or not cut to length, and 
parts of bicycles consisting of sets of steel tubing cut to exact 
length and each set having the number of tubes needed for the 
assembly (with other parts) into the frame and fork of one 
bicycle", and 
102 STAT. 1300 
PUBLIC LAW 100-418—AUG. 23, 1988 
(5) by striking out "6/30/86" and inserting in lieu thereof 
"12/31/90". 
(e) CALIPER BRAKE CABLE OR INNER WIRE AND CASING.—Subpart B 
of part 1 of the Appendix is amended by inserting in numerical 
sequence the following new item: 
912.12 
Cable or inner 
wire for caliper 
brakes and 
casing therefor, 
whether or not 
cut to length 
(provided for in 
items 642.08, 
642.11, 642.14, 
642.16, 642.18, 
642.19, 642.23, 
and 657.25, 
parts 3B and 
3G, schedule 6, 
and items 
771.55 and 
772.65, parts 
12B and 12C, 
schedule 7) 
Free 
No change 
On or 
before 
12/31/90 
(f) EXCEPTION TO CUSTOMS EXEMPTION APPLICABLE TO FOREIGN 
TRADE ZONES.—Section 3(b) of the Act of June 18, 1934 (commonly 
known as the Foreign Trade Zones Act, 19 U.S.C. 81c(b)), is amended 
by striking out "June 30,1986" and inserting in lieu thereof "Janu-
ary 1,1991". 
SEC. 1784. l,2-DIMETHYL-3,5-DIPHENYLPYRAZOLIUM METHYL SULFATE 
(DIFENZOQUAT METHYL SULFATE). 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
907.24 
l,2-Dimethyl-3.5-
diphenylpyrazo-
lium methyl 
sulfate 
(difenzoquat 
methyl sulfate) 
(provided for in 
item 408.19, 
part 10, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1785. TRIALLATE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1301 
907.64 
S^2,3,3'-
trichlorallyl)-
diisopropyl-
thiocarbamate 
(provided for in 
item 425.36, 
part 2D, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1786. m-NITRO-p-ANISIDINE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
906.56 
m-Nitro-p-
anisidine 
(provided for in 
item 405.09, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1787. DINOCAP AND MIXTURES OF DINOCAP AND MANCOZEB. 
(a) DiNOCAP AND APPUCATION ADJUVANTS.—Subpart B of part 1 of 
the Appendix is amended by inserting in numerical sequence the 
following new items: 
907.98 
907.99 
Dinocap (provided 
for in item 
408.16, part IC, 
schedule 4) 
Mixtures of 
dinocap and 
application 
adjuvants 
(provided for in 
item 408.38. 
part IC, 
schedule 4) 
Free 
Free 
No change 
No change 
On or 
before 
12/31/90 
On or 
before 
12/31/90 
(b) MIXTURES OF DINOCAP AND MANCOZEB.—Subpart B of part 1 of 
the Appendix is amended by inserting in numerical sequence the 
following new item: 
907.28 
Mixtures of 
mancozeb and 
dinocap 
(provided for in 
item 408.38, 
part IC, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1788. m-NITRO-O-ANISIDINE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
102 STAT. 1302 
PUBLIC LAW 100-418—AUG. 23, 1988 
906.35 
m-Nitro-o-
anisidine 
(provided for in 
item 405.07, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1789. p-NITRO-0-TOLUIDINE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence to the following new item: 
906.37 
p-Nitro-o-toluidine 
(provided for in 
item 404.88, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1790. PHENYLCARBETHOXYPYRAZOLONE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
906.31 
Phenylcarbethoxy-
pjrrazolone 
(provided for in 
item 406.39, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1791. p-NITRO-O-ANISIDINE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
908.14 
p-Nitro-o-
anisidine 
(provided for in 
item 405.07, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1792. CARBODIIMIDES. 
(a) Subpart B of part 1 of the Appendix is amended by inserting in 
numericsd sequence the following new item: 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1303 
907.70 
Bis(o-tolyl) 
carbodiimide; 
2,2',6,6'-
Tetraisopropyl-
diphenyl 
carbodiimide; 
Poly[nitrilo-
methanete-
traryl-nitrilo 
[2,4,6-tris(l,-
methylethyl)-l,3 
phenylenej, 2,6-
bisd-
methylethyl) 
phenyl]-omega-
[[[[2,6-bis(l-
methylethyl) 
phenyl]ainino] 
methylene]-
amino]; and 
Benezene, 2,4-
diisocyanato-
l,3,5-tris(l-
methylethyl)-
homopolymer 
(provided for in 
item 405.53, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1793. TRIETHYLENE GLYCOL BICHLORIDE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
907.73 
Triethylene glycol 
dichloride 
(provided for in 
item 428.47, 
part 2D, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1794. MIXTURES OF 5-CHLORO-2-METHYL-4-ISOTHIAZOLIN-3-ONE, 2-
METHYL.4-ISOTHIAZOLIN-3-ONE, 
MAGNESIUM 
CHLORIDE. 
STABILIZERS AND APPLICATION ADJUVANTS. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
102 STAT. 1304 
PUBLIC LAW 100-418—AUG. 23, 1988 
908.16 
Mixtures of 5-
chloro-2-methyl-
4-isothiazolin-3-
one, 2-methyl-4-
isothiazolin-3-
one, magnesium 
chloride, 
stabilizers and 
application 
adjuvants 
(provided for in 
item 432.28, 
part 2E, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1795. 2-N-OCTYL-4.ISOTHIAZOLIN-3-ONE, AND ON MIXTURES OF 2-N-
OCTYL-4-ISOTHIAZOLIN-3-ONE 
AND 
APPLICATION 
ADJUVANTS. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
908.17 
2-n-Octyl-4-
isothiazolin-3-
one, and 
mixtures of 2-n-
octyl-4-
isothiazolin-3-
one and 
application 
a4iuvants 
(provided in 
items 425.52 
and 430.20, part 
2D, schedule 4)... Free 
No change 
On or 
before 
12/31/90 
SEC. 1796. WEAVING MACHINES FOR FABRICS IN EXCESS OF 16 FEET 
WIDTH. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
912.48 
Power-driven 
weaving 
machines for 
weaving fabrics 
more than 
sixteen feet in 
width, and 
parts thereof 
(provided for in 
item 670.14 and 
670.74, part 4E, 
schedule 6) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1797. BARBITURIC ACID. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1305 
907.50 
Barbituric acid 
(provided for in 
item 437.36, 
part 3B, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1798. 3-METHYL-5.PYRAZOLONE. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
907.46 
3-Methyl-5-
pyrazolone 
(provided for in 
item 425.52, 
part 2D, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1799. 3-METHYL-l-(P-TOLYL)-2-PYRAZOLIN-5.0NE (P-TOLYL METHYL 
PYRAZOLONE). 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
908.15 
3-Methyl-l-(p-
tolyl)-2-
pyrazolin-5-one 
(p-Tolyl methyl 
pjrrazolone) 
(provided for in 
item 406.36, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1800. CERTAIN OFFSET PRINTING PRESSES. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
911.93 
Offset printing 
presses of the 
sheet-fed type 
weighing 3,500 
pounds or more 
(provided for in 
item 668.21, 
part4D, 
schedule 6) 
No change 
10% ad val. On or 
before 
12/31/90 
SEC. 1801. FROZEN CRANBERRIES. 
Subpart B of part 1 of the Appendix to the Tariff Schedules of the 
United States is amended by inserting in numerical sequence the 
following item: 
102 STAT. 1306 
PUBLIC LAW 100-418—AUG. 23, 1988 
903.63 
Cranberries, 
frozen (provided 
for in item 
146.71, part 9B, 
schedule 1) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1802. m-HYDROXYBENZOIC ACID. 
Subpart B of part 1 of the Appendix is amended by inserting in 
numerical sequence the following new item: 
908.18 
m-Hydroxybenzoic 
acid (provided 
for in item 
404.40, part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/31/90 
SEC. 1803. CERTAIN BENZENOID CHEMICALS. 
Subpart B of part 1 of the Appendix is amended— 
(1) by inserting in numerical sequence the following new item: 
908.32 
N1,N4,N4-Tris(2-
hydroxyethyl)-2-
nitro-1,4-
phenylenedia-
mine; 
N1,N4-Dimethyl-
Nl-(2-
hydroxyethyl)-3-
nitro-1,4-
phenylenedia-
mine; 
N1,N4-Dimethyl-
Nl-(2,3-
dihydroxjrpro-
pyl)-3-nitro-l,4-
phenylenedia-
mine; and 
Nl-(2-
Hydroxyethyl)-
3-nitro-l,4-
phenylenedia-
mine (provided 
for in item 
405.09, part IB, 
schedule 4) 
Free 
On or 
before 
12/1/90 
(2) by inserting in numerical sequence the following new item: 
No change 
908.33 
Nl-(2-
Hydroxyethyl)-
2-nitro-l,4-
phenylenedia-
mine (provided 
for in item 
405.07, part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/1/90 
and 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1307 
(3) by inserting in numerical sequence the following new item: 
908.34 
2-Nitro-5-[(2,3-
dihydroxy)-
propoxy]-N-
methylaniline; 
2-Nitro-5-(2-
hydroxy-
ethoxy)-N-
methylaniline; 
4-[(2-
Hydroxyethyl)-
amino]-3-
nitrophenol; 
4-(2-
Hydroxyeth-
oxy)-l,3-
phenylenedia-
mine 
dihydrochloride; 
and 
3-Methoxy-4-[(2-
hydroxyethyl)-
aminojnitro-
benzene 
(provided for in 
item 405.09, 
part IB, 
schedule 4) 
Free 
No change 
On or 
before 
12/1/90 
SEC. 1804. EXTENSION OF CERTAIN SUSPENSION PROVISIONS. 
(a) PROVISIONS THAT EXPIRED BEFORE 1987.—Each of the following 
items are amended by striking out the date in the effective date 
column and inserting in lieu thereof "12/31/90": 
(1) Item 903.65 (relating to cantaloupes). 
(2) Items 905.10 and 905.11 (relating to certain wools). 
(3) Items 906.10 and 906.12 (relating to needlecraft display 
models). 
(4) Item 907.01 (relating to triphenyl phosphate). 
(5) 
Item 
907.14 
(relating 
to isomeric 
mixtures of 
ethylbiphenyl). 
(6) Item 907.17 (relating to sulfapjrridine). 
(7) Item 911.25 (relating to synthetic rutile). 
(8) Item 911.95 (relating to certain clock radios). 
(9) Item 912.07 (relating to machines designed for heat-set, 
stretch texturing of continuous man-made fibers). 
(10) Item 912.20 (relating to certain small toys). 
t 
(11) Items 912.30, 912.34, and 912.36 (relating to stuffed dolls, 
certain toy figures, and skins thereof). 
(12) Item 912.45 (relating to umbrella frames). 
(13) Item 903.60 (relating to mixtures of mashed or macerated 
hot red peppers and salt). 
0)) PROVISIONS EXPIRING IN 1987 OR LATER.—Each of the following 
items is amended by striking out the date in the effective date 
column and inserting in lieu thereof "12/31/90": 
(1) Items 903.70 and 903.80 (relating to crude feathers and 
down). 
(2) Item 905.50 (relating to surgical gowns). 
102 STAT. 1308 
PUBLIC LAW 100-418—AUG. 23, 1988 
(3) Item 906.50 (relating to diphenylguanidine and di-ortho-
tolylguanidine). 
(4) Item 906.57 (relating to m-toluic acid). 
(5) Item 907.13 (relating to menthol feedstocks). 
(6) Item 907.19 (relating to sulfathiazole). 
(7) Item 907.21 (relating to flecainide acetate). 
(8) Item 907.23 (relating to o-Benzyl-p-chlorophenol). 
(9) Item 907.31 (relating to B-Naphthol). 
(10) Item 907.32 (relating to 3,3'-Diaminobenzidine). 
(11) Item 907.33 (relating to acetylsulfaguanidine). 
(12) Item 907.34 (relating to 6-Amino-l-naphthoI-3-sulfonic 
acid). 
(13) Item 907.35 (relating to 2-(4-Aminophenyl)-6-methylbenzo-
thiazole-7-fiulfonic add). 
(14) Item 907.36 (relating to sulfamethazine). 
(15) Item 907.37 (relating to sulfaguanidine). 
(16) Item 907.38 (relating to sulfaquinoxaline and sulfa-
nilamide). 
(17) Item 907.63 (relating to nicotine resins). 
(18) Item 907.79 (relating to iron-deztran complex). 
(19) Item 909.01 (relating to natural graphite). 
(20) Item 912.04 (relating to certain narrow weaving ma-
chines). 
(21) Item 912.11 (relating to certain lace-braiding machines). 
(22) Item 905.40 (relating to certain hovercraft skirts). 
(23) Item 906.52 (relating to 5^hloro-2-methyl-4-isothiazolin-3-
one, 2-methyl-4-isothiazolin-3-one, magnesium chloride and 
magnesium nitrate). 
(c) TECHNICAL AMENDMENTS.— 
(1) Item 906.10 is amended— 
(A) by striking out "365.78" and inserting in lieu thereof 
"365.66", 
(B) by striking out "365.86" and inserting in lieu thereof 
"365.89", 
(
C
D by striking out "367.34" and inserting in lieu thereof 
"367.32", 
(D) by striking out "367.60" and inserting in lieu thereof 
"367.63", 
(E) by striking out "386.13" and inserting in lieu thereof 
"386.12", and 
(F) by striking out "386.50" and inserting in lieu thereof 
"386.53". 
(2) Item 906.12 is amended by striking out "383.03, 383.08, 
383.20, and 383.50" and inserting in Ueu thereof "384.04, 384.09, 
384.22, and 384.52". 
(3) Item 907.14 is amended by striking out "407.16" and 
msertmg in lieu thereof "407.19". 
(4) Item 912.45 is amended by striking out "751.20" and 
inserting in lieu thereof "751.21". 
(5) Item 907.21 is amended by striking out "412.12" and 
inserting in lieu thereof "412.11". 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1309 
Subpart C—Effective Dates 
SEC. 1831. EFFECTIVE DATES. 
(a) IN GENERAL.—Except as otherwise provided in this section, the 
amendments made by this part shall apply with respect to articles 
entered, or withdrawn from warehouse for consumption, after 
September 30,1988. 
(b) RETROACTIVE APPLICATION FOR CERTAIN LIQUIDATIONS AND 
REUQUIDATIONS.— 
(1) Notwithstanding section 514 of the Tariff Act of 1930 or 
any other provision of law, upon proper request filed with the 
appropriate customs ofGcer after September 30,1988, and before 
April 1,1989, any entry— 
(A) which was made after the applicable date and before 
October 1,1988, and 
(B) with respect to which there would have been no duty 
oralesserduty if any amendment made by— 
(i) section 1716, 1717, 1719(bX2), 1731, 1736, 1740, 
1742(a), 1747, or 1773, 
(ii) subsection (a), (h), (d), or (e) of section 1783, or 
(iii) section 1804 (other than section 1804(aX7) and 
paragraphs (2) and (10) of section 18O40t))), 
applied to such entry, 
shall be liquidated or reUquidated as though such amendment 
applied to such entry. 
(2) For purposes of this section— 
(A) The term "applicable date" means— 
(i) if the amendment described in paragraph (1)(B) is 
made by section 1717 or 1747, December 31,1982, 
(ii) if such amendment is made by section 1804(aXl), 
May 15,1985, 
(iii) if such amendment is made by paragraph (2), (3), 
(5), or (13) of section 1804(a), June 30,1985, 
(iv) if such amendment is made by section 1773, July 
1,1985, 
(v) if such amendment is made by section 1731, 
1742(a), or 1804(aX4), September 30,1985, 
(vi) if such amendment is made by section 1736, 
October 31,1985, 
(vii) if such amendment is made by section 1716 or by 
paragraph (6), (9), or (11) of section 1804(a), December 
31,1985, 
(viii) if such amendment is made by section 1740, 
May 31,1986, 
(ix) if such amendment is made by subsection (b), (d), 
or (e) of section 1783, June 30,1986, 
(x) if such amendment is made by paragraph (8), (10), 
or (12) of section 1804(a), December 31,1986, 
(xi) if such amendment is made by section 1783(a) or 
18()4(b) (other than by paragraph (2) or (10) of section 
1804(b)), December 31,1987, or 
(xii) if such amendment is made by section 1719(bX2), 
the date that is 15 days after the date of enactment of 
this Act. 
(B) The term "entry" includes any withdrawal from ware-
house. 
102 STAT. 1310 
PUBLIC LAW 100-418—AUG. 23, 1988 
(c) HOSIERY KNITTING MACHINES AND NEEDLES.—Notwithstanding 
section 514 of the Tariff Act of 1930 or any other provision of law, 
upon proper request filed with the appropriate customs officer after 
September 30,1988, and before April 1,1989— 
(1) any entry of an article described in item 912.08 of the 
Tariff Schedules of the United States (as in effect on September 
30,1985) that was made— 
(A) after September 30,1985, and 
(B) before the date that is 15 days after the date of 
enactment of this Act, 
^ 
shall be liquidated or reliquidated as though such entry had 
been made on September 30,1985; and 
(2) any entry of an article described in item 912.09 of such 
Schedules (as in efiect on June 30, 1985) that was made— 
(A) after June 30,1985, and 
(B) before the date that is 15 days after the date of 
enactment of this Act, 
shall be liquidated or reliquidated as though such entry had 
been made on June 30,1985. 
PART II~MISCELLANEOUS PROVISIONS 
SEC. 1841. CERTAIN STRUCTURES AND PARTS USED IN THE W.M. KECK 
OBSERVATORY PROJECT, MAUNA KEA, HAWAII. 
The Secretary of the Treasury is authorized and directed to admit 
free of duty after September 30, 1988, the following articles for the 
use of the California Association for Research in Astronomy in the 
construction of the optical telescope for the W.M. Keck Observatory 
Project, Mauna Kea, Hawaii: 
(1) The telescope structure. 
Canada. 
(2) The observatory domes, produced by Brittain Steel, Ltd., of 
Vancouver, British (>)lumbia, Canada. 
Federal 
(3) The primary mirror blanks, produced by the Schott Glass-
Republic of 
works, Frankfurt, Federal Republic of CJermany. 
Germany. 
jf tjjg liquidation of the entry of any such article has become final 
before October 1, 1988, the entry shall, notwithstanding any other 
provision of law, be reliquidated on October 1, 1988, in accordance 
with the provisions of this section and the appropriate refund of 
duty made at the time of such reliquidation. 
SEC. 1842. RELIQUIDATION OF CERTAIN ENTRIES AND REFUND OF ANTI-
DUMPING DUTIES. 
(a) IN GENERAL.—Notwithstanding section 514 of the Tariff Act of 
1930 (19 U.S.C. 1514) or any other provision of law, the entries listed 
in subsection (b) shall be reliquidated on October 1, 1988, without 
liability of the importer of record for antidumping duties, and if any 
such duty has been paid, either through liquidation or compromise 
under section 617 of the Tariff Act of 1930 (19 U.S.C. 1617), refund 
thereof shall be made on October 1,1988. 
(b) SPECIFIC ENTRIES.—The entries referred to in subsection (a) are 
as follows: 
Entry Numben 
Date of Entry: 
144549 
March 26,1976 
150297 
April 27,1976 
152729 
May 11, 1976 
156068 
May 26,1976 
161653 
June 23,1976 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1311 
Entry Niimben 
Date of Entry: 
168759 
July 30,1976 
173393 
August 26,1976 
175173 
September 3,1976 
178811 
September 23,1976 
108842 
November 18,1976 
113000 
December 9,1976 
115229 
December 21,1976 
120070 
January 17,1977 
120908 
January 20,1977 
121403 
January 24,1977 
130005 
March 10, 1977. 
SEC- 1843. RELIQUIDATION OF CERTAIN TUBULAR TIN PRODUCTS. 
Notwithstanding any provision of the Tariff Act of 1930 or any 
other provision of the law to the contrary, the Secretary of the 
Treasury shall reliquidate on or after October 1,1988, as free of duty 
under item 911.12 of the Appendix to the Tariff Schedules of the 
United States, as in efTect at the time of entry, the entries numbered 
00329493 (dated March 16, 1979), 00329494 (dated March 13, 1979), 
00329495 (dated March 28, 1979), and 00330003 (dated March 21, 
1979), made at New York, and covering tubular tin products, if a 
certificate of actual use (remelt certificate) for the articles covered 
by the four entries is submitted to the United States Ckistoms 
Service at the port of entry after September 30, 1988, and before 
April 1,1989. 
SEC. 1844. CERTAIN EXTRACORPOREAL SHOCK WAVE LITHOTRIPTER 
IMPORTED FOR USE IN HAWAII. 
Notwithstanding any other provision of law— 
(1) the entry, or withdrawal from warehouse, for consumption 
in October 1986 of any extracorporeal shock wave lithotripter 
exclusively for use in the State of Hawaii shall be free of duty 
and, upon a request filed with the appropriate customs officer 
after September 30, 1988, and before April 1, 1989, shall be 
reliquidated in accordance with the provisions of this section, 
and 
(2) the appropriate refund of any duties paid on such entry or 
withdrawEd shall be made after September 30,1988. 
SEC. 1845. EXTENSION OF THE FILING PERIOD FOR RELIQUIDATION OF 
CERTAIN ENTRIES. 
Notwithstanding section 514 of the Tariff Act of 1930 or any other 
provision of law, upon proper request filed with the customs officer 
concerned after September 30, 1988, and before April 1, 1989, the 
entry of any article described in item 687.70 of the Tariff Schedules 
of the United States which was made on or after March 1,1985, and 
before November 6, 1986, shall be liquidated or reliquidated as 
though such entry had been made on November 6,1986. 
102 STAT. 1312 
PUBLIC LAW 100-418—AUG. 23, 1988 
Subtitle H—Miscellaneous Customs, Trade, 
and Other Provisions 
PART 1—CUSTOMS PROVISIONS 
SEC. 1901. ENFORCEMENT OF THE RESTRICTIONS AGAINST IMPORTED 
PORNOGRAPHY. 
(a) IN GENERAL.—Section 305 of the Tariff Act of 1930 (19 U.S.C. 
1305) is amended as follows: 
(1) The second paragraph of subsection (a) is designated as 
subsection (b) and the following side heading, appropriately 
indented, is inserted before "Upon" at the be^ginning of the 
paragraph: "Ob) ENFORCEMENT PROCEDURES.—". 
(2) The second sentence of subsection Qji) (as redesignated by 
paragraph (1)) is amended to read as follows: "Upon the seizure 
of such book or matter, such customs officer shall transmit 
information thereof to the United States attorney of the district 
in which is situated either— 
"(1) the office at which such seizure took place; or 
"(2) the place to which such book or matter is addressed; 
and the United States attorney shall institute proceedings in 
the district court for the forfeiture, confiscation, and destruction 
of the book or matter seized.". 
(3) The following new subsections are added at the end 
thereof: 
"(c) Notwithstanding the provisions of subsections (a) and (b), 
whenever a customs officer discovers any obscene material after 
such material has been imported or brought into the United States, 
or attempted to be imported or brought into the United States, he 
may refer the matter to the United States attorney for the institu-
tion of forfeiture proceedings under this section. Such proceeding 
shall begin no more than 30 days after the time the material is 
seized; except that no seizure or forfeiture shall be invalidated for 
delay if the claimant is responsible for extending the action beyond 
the allowable time limits or if proceedings are postponed pending 
the consideration of constitutional issues. 
Courts, U.S. 
"(d) Upon motion of the United States, a court shall stay such civil 
forfeiture proceedings commenced under this section pending the 
completion of any related criminal matter.". 
19 use 1305 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 
"<**«• 
apply with respect to articles entered, or withdrawn from warehouse 
for consumption, on or after the 15th day after the date of the 
enactment of this Act. 
SEC. 1902. TARE ON CRUDE OIL AND PETROLEUM PRODUCTS. 
(a) IN GENERAL.—Section 507 of the Tariff Act of 1930 (19 U.S.C. 
1507) is amended— 
(1) by striking out "The Secretary" and inserting in lieu 
thereof "(a) IN GENERAL.—The Secretary", 
(2) by striking out "in no case shall there be" and inserting in 
lieu thereof "(except as otherwise provided in this section) there 
shall not be", and 
(3) by adding at the end thereof the following new subsection: 
"(b) CRUDE OIL AND PETROLEUM PRODUCTS.—In ascertaining tare 
on imports of crude oil, and on imports of petroleum products. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1313 
allowance shall be made for all detectable moisture and impurities 
present in, or upon, the imported crude oil or petroleum products.". 
(b) EFFECTIVE DATE.—The amendment made by this section shall 
19 USC 1507 
apply with respect to articles entered, or withdrawn from warehouse 
^°^-
for consumption, after October 1,1987. 
SEC. 1903. EUGIBLE ARTICLES UNDER THE GENERALIZED SYSTEM OF 
PREFERENCES. 
Section 503(cXlXB) of the Trade Act of 1974 (19 U.S.C. 
2463(cXlXB)) is amended to read as follows: 
"(B) watches, except those watches entered after June 30, 
1989, that the President specifically determines, after public 
notice and comment, will not cause material injury to watch or 
watch band, strap, or bracelet manufacturing and assembly 
operations in the United States or the United States insular 
possessions,". 
SEC. 1904. CUSTOMS BOND CANCELLATION STANDARDS. 
Section 623(c) of the Tariff Act of 1930 (19 U.S.C. 1623(c)) is 
amended by adding at the end thereof the following new sentence: 
"In order to assure uniform, reasonable, and equitable decisions, the 
Secretary of the Treasury shall publish guidelines establishing 
standards for setting the terms and conditions for cancellation of 
bonds or charges thereunder.". 
SEC. 1905. CUSTOMS 
SERVICES 
AT 
PONTIAC/OAKLAND, 
MICHIGAN, 
AIRPORT. 
Section 236 of the Trade and Tariff Act of 1984 (19 U.S.C. 586) is 19 use 58b. 
amended— 
(1) by striking out "and" at the end of subsection (aXD; 
(2) by redesignating paragraph (2) of subsection (a) as para-
graph (3); 
(3) by inserting after paragraph (1) of subsection (a) the 
following new paragraph: 
"(2) the airport located at Pontiac/Oakland, Michigan, and"; 
and 
(4) by striking out "20" in subsection (c). 
SEC. 1906. SENSE OF CONGRESS REQUESTING THE PRESIDENT TO IN- 
19 USC 1307 
STRUCT THE SECRETARY OF THE TREASURY TO ENFORCE 
note. 
SECTION 307 OF THE TARIFF ACT OF 1930 WITHOUT DELAY. 
(a) (CONGRESSIONAL FINDINGS.—The Ck>ngress finds that— 
(1) its February 1983 report to the Congress on forced labor in 
the Union of Soviet Socialist Republics, the Department of State 
confirmed that Soviet forced labor is used 
to produce large 
amounts of primary and manufactured goods for both domestic 
and Western export markets", and that such labor is used as an 
integral part of Soviet national economy; 
(2) the CJentral Intelligence Agency has compiled a list of over 
three dozen products made by Soviet forced labor and imported 
by the United States, and that items on the September 27, 1983 
li^t include chemicals, gold, uranium, aluminum, wood products 
and glassware; 
(3) the International (Commission on Human Rights has con-
cluded that the Soviet Union "continues the deplorable practice 
of forced labor in memufacturing and construction projects" and 
that prisoners "are forced to work under conditions of extreme 
102 STAT. 1314 
PUBLIC LAW 100-418—AUG. 23, 1988 
hardship including m£dnutrition, inadequate shelter and cloth-
ing, and severe discipline"; 
(4) the Congress is on record as opposing forced labor, having 
enacted a prohibition (in section 307 of the Tariff Act of 1930 (19 
U.S.C. 1307)) on the importation of goods made with such labor 
and having passed in the Ninety-eighth (Congress by unanimous 
, 
vote a resolution calling such practices morally reprehensible 
and calling upon the President to express to the Soviet Union 
the opposition of the United States to such policies; 
(5) the prohibition enacted by the Congress declares that 
"goods, wares, articles, and merchandise mined, produced or 
manufactured wholly or in part in any foreign country by 
convict labor or/and forced labor or/and indentured labor 
under penal sanctions shall not be entitled to entry at any of 
the ports of the United States, and the importation thereof is 
hereby prohibited"; 
(6) there is ample knowledge of the Soviet forced labor system 
to require enforcement of the prohibition contained in section 
307 of the Tariff Act of 1930 (19 U.S.C. 1307); and 
(7) the delay in enforcing the law brings into question the 
commitment of the United States to protest the inhumane 
treatment of prisoners in the Soviet Gulag, an estimated ten 
thousand of whom are political and religious prisoners accord-
ing to the Department of State. 
Qo) SENSE OF (INGRESS.—It is the sense of the CJongress that the 
President should express to the Soviet Union in the firmest possible 
terms the strong moral opposition of the United States to the slave 
labor policies of the Soviet Union by every means possible, including 
refusing to permit the importation into the United States of any 
products made in whole or in part by such labor. 
(c) PRESIDENTIAL ACTION.—The President is hereby requested to 
instruct the Secretary of the Treasury to enforce section 307 of the 
Tariff Act of 1930 (19 U.S.C. 1307) without delay. 
SEC. 1907. IMPORT MARKING PROVISIONS. 
(a) INCREASE IN PENALTY FOR VIOLATIONS OF COUNTRY-OF-ORIGIN 
A I A R K I N G REOUIRE!\f 
EINTS —^ 
(1) Section 304(h) of the Tariff Act of 1930 (19 U.S.C. 1304(h)) is 
amended to read as follows: 
"(h) PENALTIES.—Any person who, with intent to conceal the 
information given thereby or contained therein, defaces, destroys, 
removes, alters, covers, obscures, or obliterates any mark required 
under the provisions of this Act shall— 
"(1) upon conviction for the first violation of this subsection, 
be fined not more than $100,000, or imprisoned for not more 
than 1 year, or both; and 
"(2) upon conviction for the second or any subsequent viola-
tion of this subsection, be fined not more than $250,000, or 
imprisoned for not more than 1 year, or both.". 
19 use 1304 
(2XA) The amendment made by paragraph (1) applies with 
"°**- 
respect to acts committed on or after the date of the enactment 
of this Act. 
(B) The conviction of a person under section 304(h) of the 
Tariff Act of 1930 for an act committed before the date of the 
enactment of this Act shall be disr^arded for purposes of 
appljdng paragraph (2) of such subsection (as added by the 
amendment made by paragraph (1) of this subsection. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1315 
(b) MARKING OF CONTAINERS OF IMPORTED MUSHROOMS.—Imported 
preserved mushrooms shall not be considered to be in compliance 
with section 304 of the Tariff Act of 1930 (19 U.S.C. 1304) or any 
other law relating to the marking of imported articles unless the 
containers thereof indicate in English the country in which the 
mushrooms were grown. 
(c) NATIVE-AMERICAN STYLE JEWELRY AND NATIVE-AMERICAN Regulations. 
STYLE ARTS AND CRAFTS.—By no later than the date that is 1 year 
after the date of enactment of this Act, the Secretary of the Treas-
ury shall prescribe and implement r^ulations under section 304 of 
the Tariff Act of 1930 (19 U.S.C. 1304) which require, to the greatest 
extent possible, that all Native-American style jewelry and Native-
American style arts and crafts that are imported into the United 
States have the English name of the country of origin of such 
jewelry or arts and crafts indelibly marked in a conspicuous place 
on such jewelry or arts and crafts by a permanent method of 
marking. 
SEC. 1908. DUTY-FREE SALES ENTERPRISES. 
(a) FINDINGS.—The Congress finds that— 
19USC1555 
(1) duty-free sales enterprises play a significant role in ^°^-
attracting international passengers to the United States 
and thereby their operations favorably affect our balance of 
payments; 
(2) concession fees derived from the operations of authorized 
duty-free sales enterprises constitute an important source of 
revenue for the State, local and other governmental authorities 
that collect such fees; 
(3) there is inadequate statutory and regulatory recogni-
tion of, and guidelines for the operation of, duty-free sales 
enterprises; and 
(4) there is a need to encourage uniformity and consistency of 
regulation of duty-free sales enterprises. 
Ot)) IN GENERAL.—Section 5550)) of the Tariff Act of 1930 (19 U.S.C. 
1555(b)) is amended to read as follows: 
"OJ) DUTY-FREE SALES ENTERPRISES.— 
"(1) Duty-free sales enterprises may sell and deliver for export 
from the customs territory duty-free merchandise in accordance 
with this subsection and such regulations as the Secretsiry may 
prescribe to carry out this subsection. 
"(2) A duty-free sales enterprise may be located anjrwhere 
within— 
"(A) the same port of entry, as established under section 1 
of the Act of August 24, 1912 (37 Stat. 434), from which a 
purchaser of duty-free merchandise departs the customs 
territory; or 
"(B) 25 statute miles from the exit point through which 
the purchaser of duty-free merchandise will depart the 
customs territory. 
"(3) Each duty-free sales enterprise— 
"(A) shaJl establish procedures to provide reasonable 
assurance that duty-free merchandise sold by the enterprise 
will be exported from the customs territory; 
"(B) if the duty-free sales enterprise is an airport store, 
shall establish and enforce, in accordance with such regula-
tions as the Secretary may prescribe, restrictions on the 
102 STAT. 1316 
PUBLIC LAW 100-418—AUG. 23, 1988 
sale of duty-free merchandise to any one individual to 
personal use quantities; 
"(C) shall display in prominent places within its place of 
business notices which state clearly that any duty-free 
merchandise purchased from the enterprise— 
"(i) has not been subject to any Federal duty or tax, 
"(ii) if brought back into the customs territory, must 
be declared and is subject to Federal duty and tax, and 
"(iii) is subject to the customs laws and regulation of 
any foreign country to which it is taken; 
"(D) shall not be required to mark or otherwise place a 
distinguishing identifier on individual items of merchandise 
to indicate that the items were sold by a duty-free sales 
enterprise, unless the Secretary finds a pattern in which 
such items are being brought back into the customs terri-
tory without declaration; 
(E) may unpack merchandise into saleable units after it 
has been entered for warehouse and placed in a duty-free 
sales enterprise, without requirement of further permits; 
and 
"(F) shall deliver duty-free merchandise— 
"(i) in the case of a duty-free sales enterprise that is 
an airport store— 
"(I) to the purchaser (or a family member or 
companion traveling with the purchaser) in an 
area that is within the airport and to which access 
to passengers is restricted to those departing from 
the customs territory; 
"(n) to the purchaser (or a family member or 
companion traveling with the purchaser) at the 
exit point of a specific departing flight; 
"(01) by placing the merchandise within the air-
craft on which the purchaser will depart for car-
riage as passenger baggage; or 
"(XV) if the duty-free sales enterprise has made a 
good faith effort to effect delivery for exportation 
through one of the methods described in subclause 
(I), (ID, or (HI) but is unable to do so, by any other 
reasonable method to effect delivery; or 
"(ii) in the case of a duty-free sales enterprise that is 
a border store— 
"(I) at a merchandise storage location at or 
beyond the exit point; or 
(II) at any location approved by the Secretary 
before the date of enactment of the Omnibus Trade 
Act of 1987. 
State and local 
"(4) If a State or local or other governmental authority, 
governments. 
incident to its jurisdiction over any airport, seaport, or other 
exit point facility, requires that a concession or other form of 
approval be obtained from that authority with respect to the 
operation of a duty-free sales enterprise under which merchan-
dise is delivered to or through such facility for exportation, 
merchandise incident to such operation may not be withdrawn 
from a bonded warehouse and transferred to or through such 
facility unless the operator of the duty-free sales enterprise 
demonstrates to the Secretary that the concession or approval 
required for the enterprise has been obtained. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1317 
"(5) This subsection does not prohibit a duty-free sales enter-
prise from offering for sale and delivering to, or on behalf of, 
individuals departing from the customs territory merchandise 
other than duty-free merchandise, except that such, other mer- " 
chandise may not be stored in a bonded warehouse fadlity other 
than a bonded facility used for retail sales. 
"(6) Merchandise that is purchased in a duty-free sales enter-
piise is not eligible for exemption from duty under subpart A of 
part 2 of schedule 8 of the Tariff Schedules of the United States 
if such merchandise is brought back to the customs territory. 
"(7) The Secretary shall by r^ulation establish a separate Regulations. 
class of bonded warehouses for duty-free sales enterprises. Regu-
lations issued to carry out this paragraph shall take into 
account the unique characteristics of the different types of duty-
free sales enterprises. 
"(8) For purposes of this subsection— 
"(A) The term 'airport store' means a duty-free sales 
enterprise which delivers merchandise to, or on behalf of, 
individuals departing from the customs territory from an 
international airport located within the customs territory. 
"(B) The term Twrder store' means a duty-free sales 
enterprise which delivers merchandise to, or on behalf of, 
individuals departing from the customs territory through a 
land or water border by a means of conveyance other than 
an aircraft. 
(O The term 'customs territory' means the customs 
territory of the United States and foreign trade zones. 
"(D) The term 'duty-free sales enterprise' means a person 
that sells, for use outside the customs territory, duty-free 
merchandise that is delivered from a bonded warehouse to 
an airport or other exit point for exportation by, or on 
behalf of, individuals departing from the customs territory. 
"(E) The term 'duty-free merchandise' means merchan-
dise sold by a duty-free sales enterprise on which neither 
Federal duty nor Federal tax has been assessed pending 
exportation from the customs territory. 
"(F) The term 'exit point' means the area in close proxim-
ity to an actual exit for departing from the customs terri-
tory, including the gate holding area in the case of an 
airport, but only if there is reasonable assurance that duty-
free merchandise delivered in the gate holding area will be 
exported from the customs territory. 
"(G) The term 'personal use quantities' means quantities 
that are only suitable for uses other than resale, and in-
cludes reasonable quantities for household or family 
consumption as well as for gifts to others.", 
(c) EFFECTIVE DATE.—^The amendment made by this section shall 19 USC 1555 
take effect on the date that is 15 days after the date of enactment of ^°^-
this Act. 
SEC 1909. CARIBBEAN BASIN INITIATrVE. 
(a) FINDINGS.—The Congress finds that— 
19 USC 2702 
(1) Caribbean and Central American countries historically note. 
have had close economic, political, and cultural ties to the 
United States; 
102 STAT. 1318 
PUBLIC LAW 100-418—AUG. 23, 1988 
President of U.S. 
Federal 
Register, 
publication. 
Federal 
Register, 
publication. 
(2) promoting economic and political stability in the Carib-
bean and Central America is in the national security interests 
of the United States; 
(3) the economic and political stability of the nations of the 
Caribbean and Central America can be stengthened signifi-
cantly by the attraction of foreign and domestic investment 
specifically devoted to employment generation; and 
(4) the diversification of the economies and expansion of 
exports, particularly those of a non-traditional nature, of the 
nations of the Caribbean and Central America is linked directly 
to fair access to the markets of the United States. 
(b) INTENT OF THE CONGRESS.—The Congress hereby expresses its 
intention to ensure that— 
(1) the trade elements of the Caribbean Basin Initiative be 
strengthened in a manner consistent with the promotion of 
economic and political stability in the Caribbean and Central 
America; 
(2) to the extent that Congress imposes changes that are 
intended to improve the competitive environment for United 
States industry and workers, such changes do not unduly affect 
the unilateral duty-free trade system available to the bene-
ficiary countries designated under the Caribbean Basin Eco-
nomic Recovery Act; and 
(3) generic changes in the trade laws of the United States do 
not discriminate against imports from designated beneficiary 
countries in relation to imports from other United States 
trading partners. 
(c) WITHDRAWAL OR SUSPENSION OF DUTY-FREE TREATMENT TO 
SPECIFIC ARTICLES.—Subsection (e) of section 212 of the Caribbean 
Basin Economic Recovery Act (19 U.S.G. 2702(e)) is amended to read 
as follows: 
"(eXD The President may, after the requirements of subsection 
(aX2) and paragraph (2) have been met— 
"(A) withdraw or suspend the designation of any country as a 
beneficiary country, or 
"(B) withdraw, suspend, or limit the application of duty-free 
treatment under this subtitle to any article of any country, 
if, after such designation, the President determines that as a result 
of changed circumstances such country would be barred from des-
ignation as a beneficiary country under subsection (b). 
"(2XA) The President shall publish in the Federal Roister notice 
of the action the President proposes to take under paragraph (1) at 
least 30 days prior to taking such action. 
"(B) The United States Trade Representative shall, within the 30-
day period b^inning on the date on which the President publishes 
under subparagraph (A) notice of proposed action— 
"(i) accept written comments from the public regarding such 
proposed action, 
"(ii) hold a public hearing on such proposed action, and 
"(iii) publish in the Federal Register— 
"(I) notice of the time and place of such hearing prior to 
the hearing, and 
"(U) the time and place at which such written comments 
will be accepted.". 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1319 
SEC. 1910. ETHYL ALCOHOL AND MIXTURES FOR FUEL USE. 
(a) IN GENERAL.—Subsection db) of section 423 of the Tax Reform 
Act of 1986 (19 U.S.C. 2703, note) is amended— 
(1) by striking out "and 1988" in paragraphs (1) and (2) and 
inserting in lieu thereof ", 1988, and 1989", 
(2) by striking out "an insular possession of the United States 
or" in paragraph (IXA), 
(3) by striking out "January 1, 1986, or" in paragraph (IXA) 
and inserting in lieu thereof "July 1,1987,", 
(4) by inserting "or an insular possession of the United 
States" after "beneficiary country" in paragraph (IXBXiiXH), 
(5) by striking out the period at the end of paragraph (IXB) 
and inserting in lieu thereof ", or", 
(6) by inserting the following new subparagraph 
after 
subparagraph (B) of paragraph (1): 
"(C) a distillation facility operated by a corporation 
which, before the date of enactment of the Omnibus Trade 
Act of 1987— 
"(i) has completed engineering and design of a full- Virgin Islands. 
scale fermentation facility in the United States Virgin 
Islands, and 
"(ii) has obtained authorization from authorities of 
the United States Virgin Islands to operate a full-scale 
fermentation facility.", and 
(7) by striking out "or (B)" in paragraph (2) and inserting in 
lieu thereof ", (B), or (€)". 
(b) STUDIES.— 
(1) The United States International Trade Commission and 
the Comptroller General of the United States shall each imme-
diately undertake a study r^arding whether the definition of 
indigenous ethyl alcohol or mixtures thereof used in appljdng 
section 423 of the Tax Reform Act of 1986 is consistent with, and 
will contribute to the achievement of, the stated policy of 
Congress to encourage the economic development of the bene-
ficiary countries under the Caribbean Basin Economic Recovery 
Act and the insular possessions of the United States through 
the maximum utilization of the natural resources of those 
countries and 
possessions. Each study shall 
specifically 
include— 
(A) an assessment r^arding whether the indigenous 
product percentage requirements set forth in subsection 
(cX2)(B) of such section 423 are economically feasible for 
ethyl alcohol producers; and 
(B) if the assessment under subparagraph (A) is negative, 
recommended modifications to the indigenous product 
percentage requirements that— 
(i) will ensure meaningful production and employ-
ment in the region, 
(ii) will discourage pass-through operations, and 
(iii) will not result in harm to producers of ethyl 
alcohol, or mixtures thereof, in the United States; and 
(C) an assessment of the effects of imports of ethyl alco-
hol, and mixtures thereof, from such beneficiary countries 
and possessions on producers of ethyl alcohol, and mixtures 
thereof, in the United States. 
102 STAT. 1320 
PUBLIC LAW 100-418—AUG. 23, 1988 
Reports. 
(2) The United States International Trade Commission and 
the Comptroller General of the United States shall each submit 
a report containing the findings and conclusions of the study 
carried out under this subsection to the Committee on Ways and 
Means of the House of Representatives and the Committee on 
Finance of the Senate before the 180th day after the date of the 
enactment of this Act. 
SEC. 1911. ENFORCEMENT OF RESTRICTIONS ON IMPORTS FROM CUBA. 
The United States Trade Representative shall request that all 
relevant agencies prepare appropriate recommendations for improv-
ing the enforcement of restrictions on the importation of articles 
from Cuba. Such recommendations should include, but not be lim-
ited to, appropriate measures to prevent indirect shipments or other 
Reports. 
means of circumvention. The United States Trade Representative 
shall, after considering such recommendations, report to the Con-
gress, within 90 days adfter the date of enactment of this Act, on any 
administrative measures or proposed legislation which the United 
States Trade Representative considers necessary and appropriate to 
enforce restrictions on imports from Cuba. 
SEC. 1912. CUSTOMS FORFEITURE FUND. 
Section 613A of the Tariff Act of 1930 (19 U.S.C. 1613b) is 
amended^ 
(1) by striking out "beginning on the date of the enactment of 
this section, and ending on September 30, 1987," in subsection 
(c) and inserting in lieu thereof "described in subsection (a) for 
which the fund is available to the United States Customs Serv-
ice,", and 
(2) by striking out "private citizens" in subsection (aXiii) and 
inserting in lieu thereof "private persons". 
PART 2—MISCELLANEOUS TRADE PROVISIONS 
SEC. 1931. TRADE STATISTICS. 
(a) REPORTING OF IMPORT STATISTICS.—Subsection (e) of section 301 
of title 13, United States Code, is amended by striking out the last 
sentence thereof. 
13 use 301 note. 
(5) VoLUBCETRIC INDEX.— 
(1) The Director of the Census, in consultation with the 
Director of the Bureau of Economic Analysis and the Commis-
sioner of Labor Statistics, shall conduct a study to determine 
the feasibility of developing, and of publishing, an index that 
measures the real volume of merchandise trade on a monthly 
basis, which would be reported simultaneously with the balance 
of merchandise trade for the United States. 
Reports. 
(2) The Director of the Census shall submit to the Committee 
on Finance of the Senate and the Committee on Ways and 
Means of the House of Representatives a report on the study 
conducted under paragraph (1) by no later than the date that is 
one year after the date of enactment of this Act. 
SEC 1932. ADJUSTMENT OF TRADE STATISTICS FOR INFLATION AND 
DEFLATION. 
Subsection (e) of section 301 of title 13, United States Code, is 
amended by adding at the end thereof the following new sentence: 
"The information required to be reported under this subsection shall 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1321 
be reported in a form that is adjusted for economic inflation or 
deflation (on a constant dollar basis consistent with the reporting of 
the National Income and Product Accounts), and in a form that is 
not so adjusted.". 
SEC. 1933. COAL EXPORTS TO JAPAN. 
It is the sense of the Congress that— 
(1) the objectives of the November 1983 Joint Policy State-
ment on Energy Cooperation, as it relates to United States 
exports of coal to Japan, have not been achieved; 
(2) the President should seek to establish reciprocity with 
Japan with respect to metallurgical coal exports and steel 
product imports and should encourage increased purchases by 
Japan of United States steam coal; 
(3) the President should direct the United States Trade Rep-
resentative, in n^otiating a Steel Trade Arrangement with 
Jai)an, to take into consideration, consistent with the Presi-
dent's steel program, the amount of coal that Japan purchases 
from the United States in determining the level of steel, semi-
finished steel and fabricated structured steel products that can 
be imported into the United States; and 
(4) the President should report to the Congress by Novem-
ber 1,1988 regarding the results of the outcome of any negotia-
tion undertaken in response to this section. 
SEC 1934. PURCHASES OF UNITED STATES-MADE AUTOMOTIVE PARTS BY 
JAPAN. 
(a) FINDINGS.—^The Congress finds that— 
(1) the United States merchandise trade deficit reached the 
unprecedented level of $170,000,000,000 in 1986; 
(2) the United States trade deficit with Japan, which reached 
$59,000,000,000 in 1986, accounted for approximately one-third 
of the total deficit; 
(3) approximately one-half of the United States trade deficit 
with Japan was in motor vehicles and equipment; 
(4) while Japanese automobile firms based in Japan produced 
7,800,000 passenger cars in 1986 and exported 2,300,000 cars to 
the United Stat^, United States exports of auto parts to Japan 
were only about $300,000,000 in 1986; 
(5) United States automotive parts producers meet increas-
ingly rigorous requirements for quality, just-in-time supply, and 
competitive pricing in the United States market; and 
(6) the market-oriented sector specific (MOSS) talks on auto 
parts are aimed at overcoming substantial market access bar-
riers and increasing the access of United States auto parts 
producers to the original and replacement parts market rep-
resented by Japanese automobiles produced in Japan, the 
United States, and third countries. 
(b) SENSE OF CONGRESS.—The Congress— 
(1) strongly supports efforts being made by United States 
n^otiators to expand significantly the opportunities for United 
States automotive parts producers to supply original and 
replacement parts for Japanese automobiles, wherever those 
automobiles may be produced; and 
(2) determines that success of the MOSS talks will be meas-
ured by a significant increase in sales by United States auto 
parts companies to Japanese vehicle companies and the 
102 STAT. 1322 
PUBLIC LAW 100-418-AUG. 23, 1988 
initiation of long-term sourcing relationships between such 
companies, 
(c) REPORT ON OUTCOME.—The United States Trade Representa-
tive and the Secretary of Commerce shall report to Congress at the 
conclusion of the MOSS talks on the outcome of the talks and on any 
agreements reached with Japan with respect to purchases by Japa-
nese firms of United States automotive parts. 
SEC. 1935. EFFECT OF IMPORTS ON CRUDE OIL PRODUCTION AND REFIN-
ING CAPACITY IN THE UNITED STATES. 
The Secretary of Energy shall send to the Secretary of Commerce 
the results of the study conducted under section 3102 of the Omni-
Reports. 
bus Budget Reconciliation Act of 1986. Within 180 days of the 
receipt of the results of such study, the Secretary of Commerce shall 
report to the President and the Congress reconmiendations for 
actions which may be appropriate to address any impact of imports 
of crude oil and petroleum products on domestic crude oil explo-
ration and production and the domestic petroleum refining capacity. 
SEC. 1936. STUDY OF TRADE BARRIERS ESTABLISHED BY AUTO PRODUC-
ING COUNTRIES TO AUTO IMPORTS AND THE IMPACT ON THE 
UNITED STATES MARKET. 
(a) STUDY.—The United States Trade Representative shall conduct 
a study of formal and informal barriers which auto producing 
countries have established toward automobile imports and the 
impact of such barriers on diverting automobile imports into the 
United States. The study shall consider the impact of such barriers 
on automobile imports into the United States in the presence of, and 
in the absence of, voluntary restraint agreements between the 
United States and Japan. 
(b) REPORT.—The United States Trade Representative shall in-
clude the foldings of the study conducted under subsection (a) in the 
first report that is submitted under section 181(b) of the Trade Act of 
1974 (19 U.S.C. 2241) after the date of enactment of this Act. 
SEC. 1937. LAMB MEAT IMPORTS. 
Within 15 days after the date of the enactment of this Act, the 
United States International Trade O)mniission, pursuant to section 
332(g) of the Tariff Act of 1930 (19 U.S.C. 1332(g)), shall monitor and 
investigate for a period of 2 years the importation into the United 
States of articles provided for in item 106.30 of the Tariff Schedules 
of the United States (19 U.S.C. 1202) (relating to fresh, chilled, and 
frozen lamb meat). For purposes of any request made under subsec-
tion (d) of section 202 of the Trade Act of 1974 (as amended by 
section 1401 of this Act) within such 2-year period for provisional 
relief with respect to imports of such articles, the monitoring and 
investigation required under this section shall be treated as having 
been requested by the United States Trade Representative under 
paragraph (1)(B) of such subsection. 
PART 3—OTHER PROVISIONS 
SEC. 1941. WINDFALL PROFIT TAX REPEAL. 
26 use 
(a) IN GENERAL.—Chapter 45 of the Internal Revenue Code of 1986 
4986-4998. 
is repealed. 
(b) CONFORBONG AMENDMENTS.— 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1323 
(1) Sections 6050C, 6076, 6232, 6429, 6430, and 7241 of the 
Internal Revenue Code of 1986 are repealed. 
(2XA) Subsection (a) of section 164 of such Code is amended by 
striking paragraph (4) and redesignating the subsequent para-
graphs as paragraphs (4) and (5), respectively. 
(B) The following provisions of such Code are each amended 
by striking "44, or 45" each place it appears and inserting 
"or 44": 
(i) section 6211(a), 
(ii) section 6211(bX2), 
(iii) section 6212(a), 
(iv) section 6213(a), 
(v) section 6213(g), 
(vi) section 6214(c), 
(vii) section 6214(d), 
(viii) section 6161(bXl), 
(ix) section 6344(aXl), and 
(x) section 7422(e). 
(C) Subsection (a) of section 6211 of such Code is amended by 
striking "44, and 45" and inserting "and 44". 
(D) Subsection (b) of section 6211 of such Code is amended by 
striking paragraphs (5) and (6). 
(E) Paragraph (1) of section 6212(b) of such Code is amended— 
(i) by striking "chapter 44, or chapter 45" and inserting 
"or chapter 44", and 
(ii) by striking "chapter 44, chapter 45, and this chapter" 
and insertii^ "chapter 44, and this chapter". 
(F) Paragraph (1) of section 6212(c) of such Code is amended— 
(i) by striking "of chapter 42 tax" and inserting "or of 
chapter 42 tax", and 
(ii) by striking ", or of chapter 45 tax for the same taxable 
period". 
(G) Subsection (e) of section 6302 of such Code is amended— 
(i) by striking "(1) For" and inserting "For", and 
(ii) by striking paragraph (2). 
(H) Section 6501 of such Code is amended by striking the 
subsection relating to special rules for windfall profit tax. 
(I) Section 6511 of such (I!ode is amended by striking subsec-
tion (h) and redesignating subsection (i) as subsection (h). 
(J) Subsection (a) of section 6512 of such CJode is amended— 
(i) by striking "of tax imposed by chapter 41" and insert-
ing "or of tax imposed by chapter 41", and 
(ii) by striking ", or of tax imposed by chapter 45 for the 
same taxable period". 
(K) Paragraph (1) of section 6512(b) of such Code is amended— 
(i) by striking "of tax imposed by chapter 41" and insert-
ing "or of tax imposed by chapter 41", and 
(li) by striking ", or of tax imposed by chapter 45 for the 
same taxable period". 
(L) Section 6611 of such Code is amended by striking subsec-
tion (h) and redesignating subsections (i) and 0') as subsections 
(h) and (i), respectively. 
(M) Subsection (d) of section 6724 of such Code is amended— 
(i) by striking clause (i) in paragraph (1)(B) and re-
designating clauses (ii) through (x) as clauses (i) through 
(ix), respectively, and 
102 STAT. 1324 
PUBLIC LAW 100-418—AUG. 23, 1988 
(ii) by striking subparagraphs (A) and (K) of paragraph (2) 
and redesignating subparagraphs (B), (C), (D), (E), (F), (G), 
(H), (D, (J), (L), (M), (N), (O), (P), (Q), (R), (S), and (D as 
subparagraphs (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), (K), 
(L), (M), (N), (O), (P), (Q), and (R), respectively. 
26 use 6862. 
(N) Subsection (a) of section 6862 of such Code is amended by 
striking "44, and 45" and inserting "and 44". 
(O) Section 7512 of such Code is amended— 
(i) by striking ", by chapter 33, or by section 4986" in 
subsections (a) and (b) and inserting "or chapter 33", and 
(ii) by striking ", chapter 33, or section 4986" in subsec-
tions (b) and (c) and inserting "or chapter 33". 
(3XA) The table of contents of subtitle D of such Code is 
amended by striking the item relating to chapter 45. 
(B) The table of contents of subpart B of part III of subchapter 
A of chapter 61 of such Code is amended by striking the item 
relating to section 6050C. 
(O TTie table of contents of part V of such subchapter is 
amended by striking the item relating to section 6076. 
(D) The table of contents of subchapter C of chapter 63 of such 
Code is amended by striking the item relating to section 6232. 
(E) The table of contents of subchapter B of chapter 65 of such 
Code is amended by striking the items relating to sections 6429 
and 6430. 
(F) The table of contents of part II of subchapter A of chapter 
75 of such Code is amended by striking the item relating to 
section 7241. 
(4XA) Section 280D of such Code is repealed. 
(B) Tbe table of sections for part IX of subchapter B of chapter 
1 of such Code is amended by striking the item relating to 
section 280D. 
(5) Paragraph (4) of section 291Q>) of such Code is amended to 
read as follows: 
"(4) INTEGRATED OIL CX)MPANY DEFINED.—For purposes of this 
subsection, the term 'int^rated oil company* means, with re-
spect to any taxable year, any producer of crude oil to whom 
subsection (c) of section 613A does not apply by reason of 
paragraph (2) or (4) of section 613A(d)." 
(6XA) Paragraph (3) of section 6654(f) of such (Dode is amended 
to read as follows: 
"(3) the credits against tax provided by part IV of subchapter 
A of chapter 1, other than the credit against tax provided by 
section 31 (relating to tax withheld on wages)." 
(B) Subparagraph (B) of section 6655(gXl) of such Code is 
amended to read as follows: 
"(B) the credits against tax provided by part IV of subchapter 
A of chapter 1." 
(7) Subparagraph (A) of section 193(bX3) of such Ck)de is 
amended by strilong "section 4996(bX8XC)" and inserting "sec-
tion 4996flt)X8XQ as in effect before its repeal". 
26 use 164 note. 
(c) EFFECTIVE DATE.—The amendments made by this section shall 
apply to crude oil removed from the premises on or after the date of 
the enactment of this Act. 
* 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1325 
TITLE II—EXPORT ENHANCEMENT 
Erancement 
note. 
Act of 1988. 
SEC. 2001. SHORT TITLE. 
15 USC 4701 
This title may be referred to as the "Export Enhancement Act 
of 1988". 
Subtitle A—^Trade and Foreign Policy 
PART I—RELATIONS WITH CERTAIN COUNTRIES 
SEC. 2101. UNITED STATES-MEXICO FRAMEWORK AGREEMENT ON TRADE 
AND INVESTMENT. 
(a) FINDINGS.—The Congress finds that the Bilateral Framework 
Agreement on Trade and Investment, entered into by the United 
States and Mexico on November 6,1987— 
(1) provides a useful vehicle for the management of bilateral 
trade and investment relations, based on shared principles and 
objectives; 
(2) establishes procedures for consultation by the two coun-
tries on matters of bilateral trade and investment, and should 
facilitate resolution of disputes on these matters; and 
(3) has led to n^otiations between the two countries on 
important issues, and should continue to facilitate such 
negotiations. 
(b) FURTHER IMPLEMENTATION OF THE AGREEMENT.—Within the 
context of the Bilateral Framework Agreement on Trade and Invest-
ment, the President is urged to continue to pursue consultations 
with representatives of the Government of Mexico for the purposes 
of implementing the Agreement and achieving an expansion of 
mutually beneficial trade and investment. 
SEC 2102. RELATIONS WITH COUNTRIES PROVIDING OFFENSIVE WEAP-
ONRY TO BELUGERENT COUNTRIES IN THE PERSIAN GULF 
REGION. 
It is the sense of the Congress that the President should use all 
available appropriate leverage to persuade all countries to desist 
from any fiirther transfers of ofiTensive weaponry, such as Silkworm 
missiles, to any belligerent country in the Persian Gulf region. 
PART II—FAIR TRADE IN AUTO PARTS 
SEC. 2121. SHORT TITLE. 
Fair Trade in 
Auto Parts Act 
of 1988. 
15 USC 4701 
This part may be referred to as the "Fair Trade in Auto Parts Act note. 
of 1988". 
SEC 2122. DEFINITION. 
15 USC 4701. 
For purposes of this part, the term "Japanese markets" refers to 
markets, including those in the United States and Japan, where 
automotive parts and accessories, both original equipment and 
aftermarket, are purchased for use in the manufacture or repair of 
Japanese automobiles. 
102 STAT. 1326 
PUBLIC LAW 100-418—AUG. 23, 1988 
15 use 4702. 
SEC. 2123. ESTABLISHMENT OF INITIATIVE ON AUTO PARTS SALES TO 
JAPAN. 
(a) IN GENERAL.—The Secretary of Commerce shall establish an 
initiative to increase the sale of United States-made auto parts and 
accessories to Japanese markets. 
G)) FUNCTIONS.—In carrying out this section, the Secretary shall— 
(1) foster increased access for United States-made auto parts 
and accessories to Japanese companies, including specific con-
sultations on access to Japanese markets; 
(2) facilitate the exchange of information between United 
States auto parts manufacturers and the Japanese automobile 
industry; 
(3) collect data and market information on the Japanese 
automotive industry r^arding needs, trends, and procurement 
practices, including the tjrpes, volume, and frequency of parts 
sales to Japanese automobile manufacturers; 
(4) establish contacts with Japanese automobile manufactur-
ers in order to facilitate contact between United States auto 
parts manufacturers and Japanese automobile manufacturers; 
(5) report on and attempt to resolve disputes, policies, or 
practices, whether public or private, that result in barriers to 
increased commerce between United States auto parts manufac-
turers and Japanese automobile manufacturers; 
(6) take actions to initiate periodic consultations with officials 
of the Government of Japan regarding sales of United States-
made auto parts in Japanese markets; and 
Reports. 
(7) submit annual written reports or otherwise report 
annually to the Congress on the sale of United States-made auto 
parts in Japanese markets, including the extent to which long-
term, commercial relationships exist between United States 
auto 
parts 
manufacturers 
and 
Japanese 
automobile 
manufacturers. 
15 use 4703. 
SEC. 2124. ESTABLISHMENT OF SPECIAL ADVISORY COMMITTEE ON AUTO 
PARTS SALES IN JAPAN. 
(a) IN GENERAL.—The Secretary of Commerce shall seek the 
advice of the United States automotive parts industry in carrjdng 
out this part. 
(b) ESTABLISHMENT OF COMMITTEE.—The Secretary of Commerce 
shall establish a Special Advisory Committee for purposes of carry-
ing out this part. 
(c) FUNCTIONS.—The Special Advisory Committee established 
under subsection Qy) shall— 
Reports. 
(1) report to the Secretary of Commerce on barriers to sales of 
United States-made auto parts and accessories in Japanese 
markets; 
(2) review and consider data collected on sales of United 
States-made auto parts and accessories in Japanese markets; 
(3) advise the Secretary of Commerce during consultations 
with the Government of Japan on issues concerning sales of 
United States-made auto parts in Japanese markets; 
(4) assist in establishing priorities for the initiative estab-
lished under section 2123, and otherwise provide assistance and 
direction to the Secretary of Commerce in carrying out the 
intent of that section; and 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1327 
(5) assist the Secretary in reporting, or otherwise report to the 
Congress as requested, on the prc^ess of sales of United States-
made auto parts in Japanese markets, 
(d) AUTHORITY.—^The Secretary of Commerce shall draw on exist-
ing budget authority in carrying out this part. 
SEC. 2125. EXPIRATION DATE. 
15 USC 4704. 
The authorities under this part shall expire on December 31,1993. 
Subtitle B—Export Enhancement 
PART I—GENERAL PROVISIONS 
SEC. 2201. COMMERCIAL PERSONNEL AT THE AMERICAN INSTITUTE OF 
22 USC 3310a. 
TAIWAN. 
The American Institute of Taiwan shall employ personnel to 
perform duties similar to those performed by personnel of the 
United States and Foreign Commercial Service. The number of 
individuals employed shall be commensurate with the number of 
United States personnel of the Commercial Service who are perma-
nently assigned to the United States diplomatic mission to South 
Korea. 
SEC. 2202. COUNTRY REPORTS ON ECONOMIC POLICY AND TRADE 15 USC 4711. 
PRACTICES. 
The Secretary of State shall, not later than January 31 of each 
year, prepare and transmit to the Committee on Foreign Affairs and 
the Committee on Ways and Means of the House of Representatives, 
to the Committee on Foreign Relations and the Committee on 
Finance of the Senate, and to other appropriate committees of the 
Congress, a detailed report r^arding the economic policy and trade 
practices of each country with which the United States has an 
economic or trade relationship. The Secretary may direct the appro-
priate officers of the Department of State who are serving overseas, 
in consultation with appropriate officers or employees of other 
departments and agencies of the United States, including the 
Department of Agriculture and the Department of Commerce, to 
coordinate the preparation of such information in a country as is 
necessary to prepare the report under this section. The report shall 
identify and describe, with respect to each country— 
(1) the macroeconomic policies of the country and their 
impact on the overall growth in demand for United States 
exports; 
(2) the impact of macroeconomic and other policies on the 
exchange rate of the country and the resulting impact on price 
competitiveness of United States exports; 
(3) any change in structural policies (including tax incentives, 
r^ulations governing financial institutions, production stend-
ards, and patterns of industrial ownership) that may affect the 
country's growth rate and its demand for United States exports; 
(4) the management of the country's external debt and its 
implications for trade with the United States; 
(5) acts, policies, and practices that constitute significant 
barriers to United States exports or foreign direct investment in 
that country by United Stetes persons, as identified under 
section 181(aXl) of the Trade Act of 1974 (19 U.S.C. 2241(aXl)); 
102 STAT. 1328 
PUBLIC LAW 100-418—AUG. 23, 1988 
22 use 2191 
note. 
Loans. 
22 use 2191a. 
22 use 2421 
note. 
(6) acts, policies, and practices that provide direct or indirect 
government support for exports from that country, including 
exports by small businesses; 
(7) the extent to which the country's laws and enforcement of 
those laws afford adequate protection to United States intellec-
tual property, including patents, trademarks, copyrights, and 
mask works; and 
(8) the country's laws, enforcement of those laws, and prac-
tices with respect to internationally recognized worker rights 
(as defined in section 502(aX4) of the Trade Act of 1974), the 
conditions of worker rights in any sector which produces goods 
in which United States capital is invested, and the extent of 
such investment. 
SEC. 2203. OVERSEAS PRIVATE INVESTMENT CORPORATION. 
(a) REAFFIRMATION OF SUPPORT FOR OPIC.—The Congress 
re-
affirms its support for the Overseas Private Investment Corporation 
as a United States Government agency serving important develop-
ment assistance goals. In order to enhance the Corporation's ability 
to meet these goals, the Overseas Private Investment Corporation 
should increase its loan guaranty and direct investment programs. 
(b) INCREASE IN GUARANTIES AND DIRECT INVESTMENTS.— 
(1) LOAN GUARANTIES.—Section 235(a) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2195(a)) is amended— 
(A) in paragraph (2) by striking "$750,000,000" and insert-
ing "$1,000,000,000"; 
(B) by redesignating paragraph (5) as paragraph (6); and 
(C) by inserting after paragraph (4) the following: 
"(5) Subject to paragraphs (2), (3), and (4), the O)rporation shall 
issue guaranties under section 234(b) having an aggregate contin-
gent liability with respect to principal of not less than $200,000,000 
in each fiscal year, to the extent that there are eligible projects 
which meet the Corporation's criteria for such guaranties.". 
(2) DIRECT INVESTMENT.—Section 235(b) of the Foreign Assist-
ance Act of 1961 is amended— 
(A) by striking the comma after "Act of 1981" and insert-
ing a period; and 
(B) by striking "and the Corporation shall use" and all 
that follows through "funding^' and inserting the following: 
"The Corporation shall msdke loans under section 234(c) in an aggre-
gate amount of not less than $25,000,000 in each fiscal year, to the 
extent that there are eligible projects which meet the Corporation's 
criteria for such loans". 
(c) OPERATIONS OF THE OVERSEAS PRIVATE INVESTMENT CORPORA-
TION IN THE PEOPLE'S REPUBUC OF CHINA.—Section 231A(a) of the 
Foreign Assistance Act of 1961 is amended by adding at the end the 
following new paragraph: 
"(4) In making a determination under this section for the People's 
Republic of China, the Corporation shall discuss fully and com-
pletely the justification for making such determination with respect 
to each item set forth in subparagraphs (A) through (E) of section 
502(aX4) of the Trade Act of 1974.". 
SEC. 
2
2
0
4
. 
TRADE 
AND 
DEVELOPMENT 
PROGRAM. 
(a) REAFFIRMATION OF SUPPORT FOR TRADE AND DEVELOPMENT 
PROGRAM.—The Congress reaffirms its support for the Trade and 
Development Program, and believes that the Program's ability to 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1329 
support high priority development projects in developing countries 
would be enhanced by an increase in the funds authorized for the 
Program as well as by a clarification of the Program's status as a 
separate component of the Internationeil Development Cooperation 
Agency. 
(b) AUTHORIZATION AND USES OF FUNDS; ESTABLISHMENT AS SEPA-
RATE AGENCY.— 
(1) ADDITIONAL USES OF FUNDS.—Section 661(a) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2421(a)) is amended by insert-
ing after the first sentence the following: "Funds under this 
section may be used to provide support for project planning, 
development, management, and procurement for both bilateral 
and multilateral projects, including training activities under-
taken in connection with a project, for the purpose of promoting 
the use of United States exports in such projects.". 
(2) ESTABLISHMENT AS A SEPARATE AGENCY.—Section 661 of 
that Act is amended— 
(A) by redesignating subsection (b) as subsection (d); and 
(B) by inserting after subsection (a) the following: 
"(bXD The purposes of this section shall be carried out by the 
Trade and Development Program, which shall be a separate compo-
nent agency of the International Development Cooperation Agency. 
The Trade and Development Program shall not be an agency within 
the Agency for International Development or any other component 
agency of the International Development Cooperation Agency. 
"(2) There shall be at the head of the Trade and Development 
Program a Director. Any individual appointed as the Director on or President of U.S. 
after January 1, 1989, shall be appointed by the President, by and 
with the advice and consent of the Senate. 
"(3) The Trade and Development Program should serve as the 
primary Federal agency to provide information to persons in the 
private sector concerning trade development and export promotion 
related to bilateral development projects. The Trade and Develop-
ment Program shall cooperate with the Office of International 
Major Projects of the Department of Commerce in providing 
information to persons in the private sector concerning trade devel-
opment and export promotion related to multilateral development 
projects. Other Federal departments and agencies shall cooperate 
with the Trade and Development Program in order for the Program 
to more effectively provide informational services in accordance 
with this paragraph. 
"(4) The Director of the Trade and Development Program shall. Reports. 
not later than December 31 of each year, submit to the Committee 
on Foreign Affairs of the House of Representatives and the (Commit-
tee on Foreign Relations of the Senate a report on the activities of 
the Trade and Development Program in the preceding Hscal year. 
"(c) The Director of the Trade and Development Program shall, by Regulations. 
regulation, establish an advisory board which shall include rep-
resentatives of the private sector. The purpose of the advisory board 
shall be to make recommendations to the Director with respect to 
the Trade and Development Program.". 
(3) FUNDING LEVELS.—In addition to funds otherwise available 
to the President for purposes of section 661 of the Foreign 
Assistance Act of 1961— 
(A) not less than $5,000,000 and not more 
than 
$10,000,000 for fiscal year 1988 shall be made available for 
such purposes, half of which shall be derived from amounts 
102 STAT. 1330 
PUBLIC LAW 100-418—AUG. 23, 1988 
Education. 
Education. 
available to carry out section 108 of the Foreign Assistance 
Act of 1961 for such fiscal year, and half of which shall be 
derived from amounts available to carry out chapter 4 of 
part n of the Foreign Assistance Act of 1961 for such fiscal 
year; and 
(B) not less than $5,000,000 and not more 
than 
$10,000,000 for fiscal year 1989 shall be made available for 
such purposes, half of which shall be derived from amounts 
available to carry out section 108 of the Foreign Assistance 
Act of 1961 for such fiscal year, and half of which shall be 
derived from amounts available to carry out chapter 4 of 
part n of the Foreign Assistance Act of 1961 for such fiscal 
year. 
(4) ADDITIONAL FUNDING.—(A) In addition to the amounts 
otherwise available to the President for purposes of section 661 
of the Foreign Assistance Act of 1961 (including amounts avail-
able under paragraph (3) of this subsection) for fiscal years 1988 
and 1989, there are authorized to be appropriated $10,000,000 
for each such fiscal year for education and training programs 
undertaken in connection with projects under section 661 of 
that Act, including the operating expenses incurred in im-
plementing such programs. Particular emphasis shall be placed 
on including in such progrsmis nationals from the People's 
Republic of China and the Republic of China (Taiwan). Assist-
ance may be provided for education and training under this 
paragraph only if there is a reasonable expectation that such 
education and training will result in increased exports from the 
United States and will not have a negative impact on employ-
ment in the United States. 
(B) Of the funds made available to carry out subparagraph 
(A), 50 percent of such funds shall be avsulable only for edu-
cation and training prc^ams administered in the United States 
by small business concerns as defined under section 3 of the 
Small Business Act (15 U.S.C. 632). 
(c) AUTHORITIES UNDER THE TRADE AND DEVELOPMENT ENHANCE-
MENT ACT OF 1983.— 
(1) TRANSFER OF FUNCTIONS FROM AID TO TDP.—(A) SectioU 644 
of the Trade and Development Enhancement Act of 1983 (12 
U.S.C. 635q) is amended— 
(i) in subsection (aX2) by striking "Agency for Inter-
national Development" and inserting "Trade and Develop-
ment Program"; 
(ii) in subsection (aX3XA)— 
(I) by striking "offered by the Agency for Inter-
national Development" and inserting "made available 
under section 645(d) of this Act"; and 
CH) by striking "Agency for International Develop-
ment" and inserting "Trade and Development Pro-
gram"; and 
(iii) in subsection (d)— 
(I) by striking "offered by the Agency for Inter-
national Development" and inserting "made available 
under section 645(d) of this Act"; and 
(II) by striking "subsections (c) and (d) of section 645" 
and inserting "section 645(c)". 
(B) Section 645 of that Act (12 U.S.C. 635r) is amended— 
PUBLIC LAW 100-418-AUG. 23,1988 
102 STAT. 1331 
(i) in the section heading by striking "IN THE AGENCY FOR 
INTERNATIONAL DEVELOPMENT" and inserting 
"ADMINIS-
TERED B
Y THE TRADE AND DEVELOPMENT PROGRAM"; 
(ii) in subsection (a)— 
(I) by striking "Administrator of the Agency for 
International Development shall establish within the 
Agency" and inserting "Director of the Trade and 
Development Program shall carry out"; 
(II) in paragraph (1) by striking "offered by the 
Agency for International Development" and inserting 
"made available under subsection (d)"; 
(III) in paragraph (1) by striking "Agency for Inter-
national Development" and inserting "Trade and 
Development Program"; 
(IV) in paragraph (2) by striking "offered by the 
Agency for International Development" and inserting 
"made available under subsection (d)"; and 
(V) in paragraph (2) by striking "Agency for Inter-
national Development" and inserting 
Trade and 
Development Program"; 
(iii) in subsection (c>— 
(I) in paragraph (1) by striking "of the Agency for 
International Development"; and 
(II) in paragraph (2) by striking "Administrator of 
the Agency for International Development" and insert-
ing "Director of the Trade and Development Program"; 
and 
(iv) by amending subsection (d) to read as follows: 
"(d) Funds available to carry out chapter 4 of part II of the 
Foreign Assistance Act of 1961 may be used by the Director of the 
Trade and Development Program, with the concurrence of the 
Secretary of State (as provided under section 531 of the Foreign 
Assistance Act of 1961), for the purposes for which funds made 
available under this subsection are authorized to be used in section 
644 and this section. The Secretary of State shall exercise his 
authority in cooperation with the Administrator of the Agency for 
International Development. Funds made available pursuant to this 
subsection may be used to finance a tied aid credit activity in any 
country eligible for tied aid credits under this Act.". 
(2) FUNCTIONS OF NATIONAL ADVISORY COUNCIL ON INTER-
NATIONAL MONETARY AND FINANCIAL POUCIES.—Section 646 of 
the Trade and Development Enhancement Act of 1983 (12 
U.S.C. 635s) is amended by adding at the end the following: 
"(b) The Trade and Development Program shall be represented at 
any meetings of the National Advisory Council on International 
Monetary and Financial Policies for discussion of tied aid credit 
matters, and the representetive of the Trade and Development 
Program at any such meeting shall have the right to vote on any 
decisions of the Advisory Council relating to tied aid credit 
matters.". 
(d) ADMINISTRATIVE PROVISIONS.— 
(1) PAY OF DIRECTOR OF TDP.—Section 5314 of title 5, United 
States Code, is amended by adding at the end the following: 
"Director, Trade and Development Program.". 
(2) TRANSITION PROVISIONS.—(A) The Administrator of the 
Records. 
Agency for International Development shall transfer to the ^°*^*®-
Director of the Trade and Development Program all records, 
^ ^ 
^^^ 
102 STAT. 1332 
PUBLIC LAW 100-418—AUG. 23, 1988 
contracts, applications, and any other documents or information 
in connection with the functions transferred by virtue of the 
amendments made by subsection (cXl). 
(B) All determinations, regulations, and contracts— 
(i) which have been issued, made, granted, or allowed to 
become effective by the President, the Agency for Inter-
national Development, or by a court of competent jurisdic-
tion, in the performance of the functions transferred by 
virtue of the amendments made by subsection (cXD, and 
(ii) which are in effect at the time this section takes 
effect, 
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with 
the law by the President, the Director of the Trade and Develop-
ment Prc^am, or other authorized official, by a court of com-
petent jur^diction, or by operation of law. 
(CXi) The amendments made by subsection (cXD shall not 
affect any proceedings, including notices of proposed rule-
making, or any application for any financial assistance, which is 
pending on the effective date of this section before the Agency 
for International Development in the exercise of functions 
transferred by virtue of the amendments made by subsection 
(cXl). Such proceedings and applications, to the extent that they 
relate to functions so transferred, shall be continued. 
(ii) Orders shall be issued in such proceedings, appeals shall 
be taken therefrom, and payments shall be made pursuant to 
such orders, as if this section had not been enacted. Orders 
issued in any such proceedings shall continue in effect until 
modified, terminated, superseded, or revoked by the Director of 
the Trade and Development Program or other authorized offi-
cial, by a court of competent jurisdiction, or by operation of law. 
(iii) Nothing in this subparagraph shall be deemed to prohibit 
the discontinuance or modification of any such proceeding 
under the same terms and conditions and to the same extent 
that such proceeding could have been discontinued or modified 
if this section had not been enacted. 
(iv) The Director of the Trade and Development Program is 
authorized to issue regulations providing for the orderly trans-
fer to the Trade and Development Program of proceedings 
continued under this subparagraph. 
(D) With respect to any function transferred by virtue of the 
amendments made by subsection (cXD and exercised on or after 
the effective date of this section, reference in any other Federal 
law to the Agency for International Development or any officer 
shall be deemed to refer to the Trade and Development Pro-
gram or other official to which such function is so transferred. 
1
5 
use 
4712. 
SEC. 
2
2
0
5
. 
BARTER 
AND 
COUNTERTRADE. 
(a) INTERAGENCY GROUP.— 
President of U.S. 
(1) ESTABLISHMENT.—The President shall establish an inter-
agency group on countertrade, to be composed of representa-
tives of such departments and agencies of the United States as 
the President considers appropriate. The Secretary of Com-
merce shall be the chairman of the interagency group. 
(2) FUNCTIONS.—It shall be the function of the interagency 
group to— 
(A) review and evaluate— 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1333 
(i) United States policy on countertrade and offsets, 
in light of current trends in international countertrade 
and offsets and the impact of those trends on the 
United States economy; 
(ii) the use of countertrade and offsets in United 
States exports and bilateral United States foreign eco-
nomic assistance programs; and 
(iii) the need for and the feasibility of negotiating 
with other countries, through the Organization for EIco-
nomic Cooperation and Development and other appro-
priate international organizations, to reach agreements 
on the use of countertrade and offsets; and 
(B) make recommendations to the President and the Con-
gress on the basis of the review and evaluation referred to 
in subparagraph (A). 
(3) SHARING OF INFORMATION.—Other departments and agen-
cies of the United States shall provide to the interagency group 
such information available to such departments and agencies as 
the interagency group may request, except that the require-
ments, including penalties for violation thereof, for preserving 
the confidentiality of such information which are applicable to 
the officials, employees, experts, or consultants of such depart-
ments and agencies shall apply in the same manner to each 
member of the interagency group and to any other person 
performing any function under this subsection, 
(b) OFFICE OF BARTER.— 
(1) ESTABLISHMENT—^There is established, within the Inter-
national Trade Administration of the Department of Commerce, 
the Office of Barter (hereafter in this section referred to as the 
"Office"). 
(2) DIRECTOR.—There shall be at the head of the Office a 
Director, who shall be appointed by the Secretary of Commerce. 
(3) STAFF.—^The Secretary of Commerce shall transfer such 
staff to the Office as the Secretary determines is necessary to 
enable the Office to carry out its functions under this section. 
(4) FUNCTIONS.—It shall be the function of the Office to— 
(A) monitor information relating to trends in inter-
national barter; 
(B) organize and disseminate information relating to 
international barter in a manner useful to business firms, 
educational institutions, export-related Federal, State, and 
local government agencies, and other interested persons, 
including publishing periodic lists of known commercial 
opportunities for barter transactions beneficial to United 
States enterprises; 
(C) notify Federal agencies with operations abroad of 
instances where it would be beneficial to the United States 
for the Federal Government to barter Government-owned 
surplus commodities for goods and services purchased 
abroad by the Federal Government; and 
(D) provide assistance to enterprises seeking barter and 
countertrade opportunities. 
SEC. 2206. PROTECTION OF UNITED STATES INTELLECTUAL PROPERTY. 
It is the sense of the Congress that— 
(1) the Secretary of State should urge international technical 
organizations, such 
as the 
World 
Intellectual 
Property 
Classified 
information. 
Public 
information. 
State and local 
governments. 
Education. 
102 STAT. 1334 
PUBLIC LAW 100-418—AUG. 23, 1988 
Organization, to provide expertise and cooperate fully in devel-
oping effective standards, in the General Agreement on Tariffs 
and Trade, for the international protection of intellectual prop-
erty rights; and 
(2) development assistance programs administered by the 
Agency for International Development, especially the reimburs-
able development program, should, in cooperation with the 
Cop3rright Office and the Patent and Trademark Office, include 
technical training for officials responsible for the protection of 
patents, copyrights, trademarks, and mask works in those coun-
tries that receive such development assistance. 
SEC. 2207. REPORT ON WORKER RIGHTS. 
The Secretary of State shall conduct an in-depth study with a view 
to improving the breadth, content, and utility of the annual reports 
submitted to the Congress pursuant to section 505(c) of the Trade 
Act of 1974 regarding the status of internationally recognized 
worker rights in foreign countries. Not later than 6 months after the 
date of the enactment of this Act, the Secretary shall submit a 
report to the Congress on the findings of such study and shall 
include in the report recommendations for upgrading the capacity of 
the United States Government to monitor and report on other 
countries' respect for such rights. 
SEC. 2208. JAPANESE IMPORTATION OF MANUFACTURED GOODS FROM 
LESS DEVELOPED COUNTRIES. 
(a) FINDINGS.—The Congress finds that— 
(1) 
Japan's 
merchandise 
trade 
surplus 
rose 
from 
$62,000,000,000 in fiscal year 1985 to $101,000,000,000 in fiscal 
year 1986; 
(2) these surpluses pose a grave threat to the free trade 
system; 
(3) Japan's most important contribution to the international 
trading system would be to commit itself as a nation to import 
with vigor, just as it has exported with vigor in recent decades; 
(4) Japan should particularly increase its imports of manufac-
tured goods; and 
(5) Japan's share of the exports of less developed countries has 
declined from 10.6 percent in 1979 to below 8 percent in 1985. 
Ot)) SENSE OF CONGRESS.—It is the sense of the Congress that— 
(1) by taking its proportionate share of the manufactured 
exports of developing countries, Japan will promote not only its 
economic development but the economic conditions conducive to 
democracy; 
(2) expanding markets for the manufactured exports of less 
developed countries will directly benefit the United States, and, 
if less developed countries are able to increase exports to Japan, 
these countries will be able to earn more of the hard currency 
needed to service their foreign debt obligations and make the 
investments necessary to chart a course of solid economic 
growth; and 
(3) if less developed countries are able to export manufactured 
goods to Japan, they will be under less pressure to divert 
exports to the United States market. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1335 
SEC. 2209. JAPAN AND THE ARAB BOYCOTT OF ISRAEL. 
It is the sense of the Congress that the United States should 
encourage the Government of Japan in its efforts to expand trade 
relations with Israel and to end compliance by Japanese commercial 
enterprises with the Arab economic boycott of Israel. 
SEC. 2210. FACILITATION OF JEWELRY TRADE. 
It is the sense of the Congress that the United States should 
become a party to the Convention on the Control and Marking of 
Articles of Precious Metals in order to facilitate the efforts of the 
United States jewelry industry in penetrating foreign markets. 
SEC. 22n. LOAN GUARANTEES. 
Section 108 of the Foreign Assistance Act of 1961 (22 U.S.C. 2151f) 
is amended by adding at the end the following: 
"(i)(l) To carry out the purposes of subsection (a), in addition to 
the other authorities set forth in this section, the agency primarily 
responsible for administering this part is authorized to issue guaran-
tees on such terms and conditions as it shall determine Eissuring 
against losses incurred in connection with loans made to projects 
that meet the criteria set forth in subsection (c). The full faith and 
credit of the United States is hereby pledged for the full payment 
and performance of such guarantees. 
"(2) Loans guaranteed under this subsection shall be on such 
terms and conditions as the agency niay prescribe, except for the 
following: 
"(A) The agency shall issue guarantees only when it is nec-
essary to alleviate a credit market imperfection. 
"(B) Loans guaranteed shall provide for complete amortiza-
tion within a period not to exceed ten years or, if the principal 
purpose of the guaranteed loan is to finance the construction or 
purchase of a physical asset with a useful life of less than ten 
years, within a period not to exceed such useful life. 
"(C) No loan guaranteed to any one borrower may exceed 50 
percent of the cost of the activity to be financed, or $3,000,000, 
whichever is less, as determined by the agency. 
"(D) No loan may be guaranteed unless the agency deter-
mines that the lender is responsible and that adequate provision 
is made for servicing the loan on reasonable terms and protect-
ing the financial interest of the United States. 
"(E) The fees earned from the loan guarantees issued under 
this subsection shall be deposited in the revolving fund account 
as part of the guarantee reserve established under paragraph (5) 
of this subsection. Fees shall be assessed at a level such that the 
fees received, plus the funds from the revolving fund account 
placed in the guarantee reserve, satisfy the requirements of 
paragraph (5). Fees shall be reviewed every twelve months to 
ensure that the fees assessed on new loan guarantees are at the 
required level. 
"(F) Any guarantee shall be conclusive evidence that such 
guarantee has been properly obtained, and that the underlying 
loan as contracted qualifies for such guarantee. Except for fraud 
or material misrepresentation for which the parties seeking 
payment under such guarantee are responsible, such guarantee 
shall be presumed to be valid, legal, and enforceable. 
"(G) The agency shall determine that the standards used by 
the lender for assessing the credit risk of new and existing 
102 STAT. 1336 
PUBLIC LAW 100-418—AUG. 23, 1988 
guaranteed loans are reasonable. The agency shall require that 
there be a reasonable assurance of repayment before credit 
assistance is extended. 
"(H) Commitments to guarantee loans may be made by the 
agency only to the extent that the total loan principal, any part 
of which is guaranteed, will not exceed the amount specified in 
annual appropriations Acts. 
"(3) To the extent that fees are not sufficient as specified under 
paragraph (2XE) to cover expected future liabilities, appropriations 
are authorized to maintain an appropri£ite reserve. 
"(4) The losses guaranteed under this subsection may be in dollars 
or in other currencies. In the case of \oax\s in currencies other than 
dollars, the guarantees issued shall be subject to an overall payment 
limitation expressed in dollars. 
"(5) The agency shall segregate in the revolving fund account and 
hold as a reserve an amount estimated to be sufficient to cover the 
agency's expected net liabilities on the loan guarantees outstanding 
under this subsection; except that the amount held in reserve shall 
not be less than 25 percent of the principal amount of the agency's 
outstanding contingent liabilities on such guarantees. Any pay-
ments made to discharge liabilities arising from the loan guarantees 
shall be paid first out of the assets in the revolving fund account and 
next out of other funds made available for this purpose.". 
American Aid to 
PART II—ASSISTANCE TO POLAND 
Poland Act of 
1988. 
SEC. 2221. SHORT TITLE. 
7 use 1421 note. 
This part may be cited as the "American Aid to Poland Act of 
1988". 
SEC. 2222. FUNDING FOR SCIENCE AND TECHNOLOGY AGREEMENT. 
(a) FUNDING.—For purposes of implementing the 1987 United 
States-Polish science and technology agreement, there are au-
thorized to be appropriated to the Secretary of State for fiscal year 
1988, $1,000,000. 
0)) AVAILABILITY OF FUNDS.—Amounts appropriated under subsec-
tion (a) are authorized to remain available until expended. 
(c) DEFINITION.—For purposes of this section, the term "1987 
United States-Polish science and technology agreement" refers to 
the draft agreement concluded in 1987 by the United States and 
Poland, entitled "Agreement Between the Government of the 
United States of America and the Polish People's Republic on 
Cooperation in Science and Technology and Its Funding", together 
with annexes relating thereto. 
7 use 1431 note. 
SEC. 2223. DONATION OF SURPLUS AGRICULTURAL COMMODITIES. 
(a) AUTHORITY TO DONATE.—Notwithstanding any other provision 
of law, the Secretary of Agriculture shall donate, under the ap-
plicable provisions of section 4160)) of the Agricultural Act of 1949, 
for each of the fiscal years 1988 through 1992, 8,000 metric tons of 
uncommitted stocks of eligible commodities of the Commodity Credit 
Corporation under an agreement with the Government of Poland 
that the Government of Poland will sell such commodities and that 
all the proceeds from such sales will be used by nongovernmental 
agencies for eligible activities in Poland described in section 
416(bX7XDXii) of that Act (as amended by section 2225 of this Act) 
that have been approved, upon application, by the joint commission 
I*»5?l?^^g9"=.^-
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1337 
described in section 2226 and by the United States chief of diplo-
matic mission in Poland. 
(b) DEFINITIONS.—For purposes of this section— 
(1) the term "eligible commodities" has the same meaning as 
is given such term in section 416(b)(2) of the Agricultural Act of 
1949 and, in addition, includes feed grains; and 
(2) the term "nongovernmental agencies" includes nonprofit 
voluntary agencies, cooperatives, intergovernmental agencies 
such as the World Food Program, and other multilateral 
organizations. 
SEC. 2224. USE OF POLISH CURRENCIES. 
(a) USE OF POLISH 
CURRENCIES.—Subject to subsection (b), 
nonconvertible Polish currencies (zlotys) held by the United States 
on the date of enactment of this Act pursuant to an agreement with 
the Government of Poland under the Agricultural Trade Develop-
ment and Assistance Act of 1954 which are not assets of the 
Commodity Credit Corporation shall be made available, to the 
extent and in such amounts as are provided in advance in appropria-
tion Acts, for eligible activities in Poland described in section 
416(b)(7)(D)(ii) of the Agricultural Act of 1949 (as amended by section 
2225 of this Act) and approved, upon application, by the joint 
commission described in section 2226 and by the United States chief 
of diplomatic mission in Poland. 
(b) AvAiLABiuTY OF CURRENCIES.—Currencies available under 
subsection (a) are currencies available after satisfaction of existing 
commitments to use such currencies for other purposes specified by 
law. 
SEC. 2225. ELIGIBLE ACTIVITIES. 
Section 416(b)(7)(D)(ii) of the Agricultural Act of 1949 is amended 
by adding at the end the following: "In addition, foreign currency 
proceeds generated in Poland may also be used by such agencies or 
cooperatives for eligible activities approved by the joint commission 
established pursuant to section 2226 of the American Aid to Poland 
Act of 1988 and by the United States chief of diplomatic mission in 
Poland that would improve the quality of life of the Polish people 
and would strengthen and support the activities of private, non-
governmental independent institutions in Poland. Activities eligible 
under the preceding sentence include— 
"(I) any project undertaken in Poland under the auspices of 
the Charitable Commission of the Polish Catholic Episcopate for 
the benefit of handicapped or orphaned children; 
"(II) any project for the reconstruction, renovation, or mainte-
nance of the Research Center on Jewish History and Culture of 
the Jagiellonian University of Krakow, Poland, established for 
the study of events related to the Holocaust in Poland; and 
"(III) any other project or activity which strengthens and 
supports private and independent sectors of the Polish economy, 
especially independent farming and agriculture.". 
SEC. 2226. JOINT COMMISSION. 
(a) ESTABLISHMENT.—The joint commission referred to in sections 
2223 and 2224 and in section 416(b)(7)(D)(ii) of the Agricultural Act 
of 1949 (as amended by section 2225 of this Act) shall be established 
under an agreement between the United States Government, the 
7 u s e 1431 note. 
7 u s e 1431. 
Handicapped 
persons. 
Children and 
youth. 
Agriculture and 
agricultural 
commodities. 
7 u s e 1431 note. 
102 STAT. 1338 
PUBLIC LAW 100-418—AUG. 23, 1988 
Government of Poland, and nongovernmental agencies (as defined 
in section 2223) operating in Poland. 
(b) MEMBERSHIP.—The joint commission shall be composed of— 
(1) appropriate representatives of the Government of Poland; 
(2) appropriate representatives of nongovernmental agencies 
which are parties to the agreement described in subsection (a); 
and 
(3) representatives from the United States diplomatic mission 
in Poland, which may include a representative of the Foreign 
Agricultural Service. 
SEC. 2227. PROVISION OF MEDICAL SUPPLIES AND HOSPITAL EQUIP-
MENT TO POLAND. 
In addition to amounts authorized to be appropriated to carry out 
chapter 4 of part II of the Foreign Assistance Act of 1961 (relating to 
the economic support fund) for fiscal years 1988 and 1989, there are 
authorized to be appropriated to carry out that chapter for each 
such fiscal year $2,000,000, which shall be available only for provid-
ing medical supplies and hospital equipment to Poland through 
private and voluntary organizations, including for the expenses of 
purchasing, transporting, and distributing such supplies and 
equipment. 
Subtitle C—Export Promotion 
15 u s e 4721. 
SEC. 2301. UNITED STATES AND FOREIGN COMMERCIAL SERVICE. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—The Secretary of Commerce shall establish, 
within the International Trade Administration, the United 
States and Foreign Commercial Service. The Secretary shall, to 
the greatest extent practicable, transfer to the Commercial 
Service the functions and personnel of the United States and 
Foreign Commercial Services. 
(2) ASSISTANT SECRETARY OF COMMERCE AND DIRECTOR GEN-
ERAL; OTHER PERSONNEL.—The head of the Commercial Service 
shall be the Assistant Secretary of Commerce and Director 
General of the Commercial Service, who shall be appointed by 
the President, by and with the advice and consent of the Senate. 
The Assistant Secretary of Commerce and Director General of 
the Commercial Service may appoint Commercial Service Offi-
cers and such other personnel as may be necessary to carry out 
the activities of the Commercial Service. 
(3) COORDINATION WITH FOREIGN POLICY OBJECTIVES.—The Sec-
retary shall take the necessary steps to ensure that the activi-
ties of the Commercial Service are carried out in a manner 
consistent with United States foreign policy objectives, and the 
Secretary shall consult regularly with the Secretary of State in 
order to comply with this paragraph. 
(4) AUTHORITY OF CHIEF OF MISSION.—All activities of the 
Commercial Service shall be subject to section 207 of the For-
eign Service Act of 1980 (22 U.S.C. 3927). 
(b) STATEMENT OF PURPOSE.—The Commercial Service shall place 
primary emphasis on the promotion of exports of goods and services 
from the United States, particularly by small businesses and 
medium-sized businesses, and on the protection of United States 
business interests abroad by carrying out activities such as— 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1339 
Patents and 
trademarks. 
Copyrights. 
State and local 
governments. 
(1) identifying United States businesses with the potential to 
export goods and services and providing such businesses with 
advice and information on estabUshing export businesses; 
(2) providing United States exporters with information on 
economic conditions, market opportunities, the status of the 
intellectual property system in such country, and the legal and 
regulatory environment within foreign countries; 
(3) providing United States exporters with information and Marketing, 
advice on the necessary adaptation of product design and 
marketing strategy to meet the differing cultural and technical 
requirements of foreign countries; 
(4) providing United States exporters with actual leads and an 
introduction to contacts within foreign countries; 
(5) assisting United States exporters in locating reliable 
sources of business services in foreign countries; 
(6) assisting United States exporters in their dealings with 
foreign governments and enterprises owned by foreign govern-
ments; and 
(7) assisting the coordination of the efforts of State and local 
agencies and private organizations which seek to promote 
United States business interests abroad so as to maximize their 
effectiveness and minimize the duplication of efforts. 
(c) OFFICES.— 
(1) IN GENERAL.—The Commercial Service shall conduct its 
activities at a headquarters office, district offices located in 
major United States cities, and foreign offices located in major 
foreign cities. 
(2) HEADQUARTERS.—The headquarters of the Commercial 
Service shall provide such managerial, administrative, research, 
and other services as the Secretary considers necessary to carry 
out the purposes of the Commercial Service. 
(8) DISTRICT OFFICES.—The Secretary shall establish district 
offices of the Commercial Service in any United States city in a 
region in which the Secretary determines that there is a need 
for Federal Government export assistance. 
(4) FOREIGN OFFICES.—(A) The Secretary may, after consulta-
tion with the Secretary of State, establish foreign offices of the 
Commercial Service. These offices shall be located in foreign 
cities in regions in which the Secretary determines there are 
significant business opportunities for United States exporters. 
(B) The Secretary may, in consultation with the Secretary of 
State, assign to the foreign offices Commercial Service Officers 
and such other personnel as the Secretary considers necessary. 
In employing Commercial Service Officers and such other 
personnel, the Secretary shall use the Foreign Service person-
nel system in accordance with the Foreign Service Act of 1980. 
The Secretary shall designate a Commercial Officer as head of 
each foreign office. 
(C) Upon the request of the Secretary, the Secretary of State 
shall attach the Commercial Service Officers and other em-
ployees of each foreign office to the diplomatic mission of the 
United States in the country in which that foreign office is 
located, and shall obtain for them diplomatic privileges and 
immunities equivalent to those enjoyed by Foreign Service 
personnel of comparable rank and salary. 
(D) For purposes of official representation, the senior 
Commercial Service Officer in each country shall be considered 
Research and 
development. 
102 STAT. 1340 
PUBLIC LAW 100-418—AUG. 23, 1988 
to be the senior commercial representative of the United States 
in that country, and the United States chief of mission in that 
country shall accord that officer all privileges and responsibil-
ities appropriate to the position of senior commercial represent-
ative of other countries. 
(E) The Secretary of State is authorized, upon the request of 
the Secretary, to provide office space, equipment, facilities, and 
such other administrative and clerical services as may be re-
quired for the operation of the foreign offices. The Secretary is 
authorized to reimburse or advance funds to the Secretary of 
State for such services. 
(F) The authority of the Secretary under this paragraph shall 
be subject to section 103 of the Diplomatic Security Act (22 
U.S.C. 4802). 
(d) 
RANK 
OF COMMERCIAL 
SERVICE 
OFFICERS IN FOREIGN 
MISSIONS.— 
(1) MINISTER-COUNSELOR.—Notwithstanding any other provi-
sion of law, the Secretary is authorized to designate up to 8 
United States missions abroad at which the senior Commercial 
Service Officer will be able to use the diplomatic title of 
Minister-Counselor. The Secretary of State shall accord the 
diplomatic title of Minister-Counselor to the senior Commercial 
Service Officer assigned to a United States mission so 
designated. 
(2) CONSUL GENERAL.—In any United States consulate in 
which a vacancy occurs in the position of Consul General, the 
Secretary of State, in consultation with the Secretary, shall 
consider filling that vacancy with a Commercial Service Officer 
if the primary functions of the consulate are of a commercial 
nature and if there are significant business opportunities for 
United States exporters in the region in which the consulate is 
located. 
(e) INFORMATION DISSEMINATION.—In order to carry out subsection 
Ot))(7), to lessen the cost of distribution of information produced by 
the Commercial Service, and to make that information more readily 
available, the Secretary should establish a system for distributing 
that information in those areas where no district offices of the 
Commercial Service are located. Distributors of the information 
should be State export promotion agencies or private export and 
trade promotion associations. The distribution sjrstem should be 
consistent with cost recovery objectives of the Department of 
Commerce. 
(f) AUDITS.—^The Inspector General of the Department of Com-
merce shall perform periodic audits of the operations of the 
Reports. 
Commercial Service, but at least once every 3 years. The Inspector 
Greneral shall report to the Congress the results of each such audit. 
In addition to an overview of the activities and effectiveness of 
Commercial Service operations, the audit shall include— 
(1) an evaluation of the current placement of domestic person-
nel and recommendations for transferring personnel among 
district offices; 
(2) an evaluation of the current placement of foreign-based 
personnel and recommendations for transferring such person-
nel in response to newly emerging business opportunities for 
United States exporters; and 
(3) an evaluation of the personnel system and its manage-
ment, including the recruitment, assignment, promotion, and 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1341 
performance appraisal of personnel, the use of limited ap-
pointees, and the "time-in-class" system, 
(g) REPORT BY THE SECRETARY.—Not later than 1 year after the 
date of the enactment of this Act, the Secretary shall submit a 
report to the Congress on the feasibility and desirability, the 
progress to date, the present status, and the 5-year outlook, of the 
comprehensive integration of the functions and personnel of the 
foreign and domestic export promotion operations within the Inter-
national Trade Administration of the Department of Commerce, 
(h) PAY OF ASSISTANT SECRETARY AND DIRECTOR GENERAL.—Sec-
tion 5315 of title 5, United States Code, is amended by adding at the 
end the following: 
"Assistant Secretary of Commerce and Director General of 
the United States and Foreign Commercial Service.". 
(i) DEFINITIONS.—For purposes of this section— 
(1) the term "Secretary" means the Secretary of Commerce; 
(2) the term "Commercial Service" means the United States 
and Foreign Commercial Service; 
(3) the term "United States exporter" means— 
(A) a United States citizen; 
(B) a corporation, partnership, or other association cre-
ated under the laws of the United States or of any State; or 
(C) a foreign corporation, partnership, or other Eissocia-
tion, more than 95 percent of which is owned by persons 
described in subparagraphs (A) and (B), 
that exports, or seeks to export, goods or services produced in 
the United States; 
(4) the term "small business" means any small business con-
cern £is defined under section 3 of the Small Business Act (15 
U.S.C. 632); 
(5) the term "State" means any of the several States, the 
District of Columbia, or any commonwealth, territory, or posses-
sion of the United States; and 
(6) the term "United States" means the several States, the 
District of Columbia, and any commonwealth, territory, or 
possession of the United States. 
SEC. 2302. COMMERCIAL 
SERVICE 
OFFICERS 
AND 
MULTILATERAL 15 USC 4722. 
DEVELOPMENT BANK PROCUREMENT. 
(a) APPOINTMENT OF COMMERCIAL SERVICE OFFICERS TO SERVE 
WITH EXECUTIVE DIRECTORS.—The Secretary of Commerce, in con-
sultation with the Secretary of the Tresisury, shall appoint a 
procurement officer, who is a representative of the International 
Trade Administration or a Commercial Service Officer of the United 
States and Foreign Commercial Service, to serve, on a full-time or 
part-time basis, with each of the Executive Directors of the multilat-
eral development banks in which the United States participates. 
OJ) FUNCTIONS OF OFFICERS.—Each procurement officer appointed 
under subsection (a) shall assist the United States Executive Direc-
tor with respect to whom such officer is appointed in promoting 
opportunities for exports of goods and services from the United 
States by doing the following: 
(1) Acting as the liaison between the business community and 
the multilateral development bank involved, whether or not the 
bank has offices in the United States. The Secretary of Com-
merce shall ensure that the procurement officer has access to, 
and disseminates to United States businesses, information relat-
102 STAT. 1342 
PUBLIC LAW 100-418—AUG. 23, 1988 
Loans. 
15 use 4723. 
Contracts. 
State and local 
governments. 
ing to projects which are being proposed by the multilateral 
development bank, and bid specifications and deadlines for 
projects about to be developed by the bank. The procurement 
officer shall make special efforts to disseminate such informa-
tion to small and medium-sized businesses interested in partici-
pating in such projects. The procurement officer shall explore 
opportunities for disseminating such information through pri-
vate sector, nonprofit organizations. 
(2) Taking actions to assure that United States businesses are 
fully informed of bidding opportunities for projects for which 
loans have been made by the multilateral development bank 
involved. 
(3) Taking actions to assure that United States businesses can 
focus on projects in which they have a particular interest or 
competitive advantage, and to permit them to compete and have 
an equal opportunity in submitting timely and conforming 
bidding documents. 
(c) DEFINITION.—As used in this section, the term "multilateral 
development bank" includes the International Bank for Reconstruc-
tion and Development, the International Development Association, 
the International Finance Corporation, the Inter-American Develop-
ment Bank, the Inter-American Investment Corporation, the Asian 
Development Bank, the African Development Bank, and the African 
Development Fund. 
SEC. 
2
3
0
3
. 
MARKET 
DEVELOPMENT 
COOPERATOR 
PROGRAM. 
(a) AUTHORITY OF SECRETARY OF COMMERCE.—In order to promote 
further the exportation of goods and services from the United 
States, the Secretary of Commerce is authorized to establish, in the 
International Trade Administration of the Department of Com-
merce, a Market Development Cooperator Program. The purpose of 
the program is to develop, maintain, and expand foreign markets for 
nonagricultural goods and services produced in the United States. 
(b) IMPLEMENTATION OF THE PROGRAM.—The Secretary of Com-
merce shall carry out the Market Development Cooperator Program 
by entering into contracts with— 
(1) nonprofit industry organizations, 
(2) trade associations, 
(3) State departments of trade and their regional associations, 
including centers for international trade development, and 
(4) private industry firms or groups of firms in cases where no 
entity described in paragraph (1), (2), or (3) represents that 
industry, 
(in this section referred to as "cooperators") to engage in activities 
in order to carry out the purpose of the Market Development 
Cooperator Program set forth in subsection (a). The costs of activi-
ties under such a contract shall be shared equitably among the 
Department of Commerce, the cooperator involved, and, whenever 
appropriate, foreign businesses. The Department of Commerce shall 
undertake to support direct costs of activities under such a contract, 
and the cooperator shall undertake to support indirect costs of such 
activities. Activities under such a contract shall be carried out by 
the cooperator with the approval and assistance of the Secretary. 
(c) COOPERATOR PARTNERSHIP PROGRAM.— 
(1) IN GENERAL.—(A) As part of the Market Development 
Cooperator Program established under subsection (a), the Sec-
retary of Commerce shall establish a partnership program with 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1343 
cooperators under which a cooperator may detail individuals, 
subject to the approval of the Secretary, to the United States 
and Foreign Commercial Service for a period of not less than 1 
year or more than 2 years to supplement the Commercial 
Service. 
(B) Any individual detailed to the United States and Foreign 
Commercial Service under this subsection shall be responsible 
for such duties as the Secretary may prescribe in order to carry 
out the purpose of the Market Development Cooperator Pro-
gram set forth in subsection (a). 
(C) Individuals detailed to the United States and Foreign 
Commercial Service under this subsection shall not be consid-
ered to be employees of the United States for the purposes of 
any law administered by the Office of Personnel Management, 
except that the Secretary of State may determine the applicabil-
ity to such individuals of section 2(f) of the State Department 
Basic Authorities Act of 1956 (22 U.S.C. 2669(f)) and of any other 
law administered by the Secretary of State concerning the 
detail of such individuals abroad. 
(2) QUALIFICATIONS OF PARTICIPANTS.—In order to qualify for 
the program established under this subsection, individuals shall 
have demonstrated expertise in the international business 
arena in at least 2 of the following areas: marketing, market 
research, and computer data bases. 
(3) EXPENSES OF THE PROGRAM.—(A) The cooperator who de-
tails an individual to the United States and Foreign Commer-
cial Service under this subsection shall be responsible for that 
individual's salary and related expenses, including health care, 
life insurance, and other noncash benefits, if any, normally paid 
by such cooperator. 
(B) The Secretary of Commerce shall pay transportation and 
housing costs for each individual participating in the program 
established under this subsection, 
(d) BUDGET ACT.—Contracts may be entered into under this sec- Contracts. 
tion in a fiscal year only to such extent or in such amounts as are 
provided in appropriations Acts. 
SEC. 2304. TRADE SHOWS. 
15 USC 4724. 
(a) AUTHORITY OF THE SECRETARY OF COMMERCE.—In order to 
facilitate exporting by United States businesses, the Secretary of 
Commerce shall provide assistance for trade shows in the United 
States which bring together representatives of United States 
businesses seeking to export goods or services produced in the 
United States and representatives of foreign companies or govern-
ments seeking to buy such goods or services from these United 
States businesses. 
(b) RECIPIENTS OF ASSISTANCE.—Assistance under subsection (a) 
may be provided to— 
(1) nonprofit industry organizations, 
(2) trade associations, 
(3) foreign trade zones, and 
(4) private industry firms or groups of firms in cases where no 
entity described in paragraph (1), (2), or (3) represents that 
industry, 
to provide the services necessary to operate trade shows described in 
subsection (a). 
102 STAT. 1344 
PUBLIC LAW 100-418—AUG. 23, 1988 
(c) ASSISTANCE TO SMALL BUSINESSES.—In providing assistance 
under this section, the Secretary of Commerce shall, in consultation 
with the Administrator of the Small Business Administration, make 
special efforts to facilitate participation by small businesses and 
companies new to export. 
(d) USES OF ASSISTANCE.—Funds appropriated to carry out this 
section shall be used to— 
(1) identify potential participants for trade show organizers, 
(2) provide information 
on trade 
shows to 
potential 
participants, 
(3) supply language services for participants, and 
(4) provide information on trade shows to small businesses 
and companies new to export. 
(e) DEFINITIONS.—As used in this section— 
(1) the term "United States business" means— 
(A) a United States citizen; 
(B) a corporation, partnership, or other association cre-
ated under the laws of the United States or of any State 
(including the District of Columbia or any commonwealth, 
territory, or possession of the United States); or 
(C) a foreign corporation, partnership, or other associa-
tion, more than 95 percent of which is owned by persons 
described in subparagraphs (A) and (B); and 
(2) the term "small business" means any small business con-
cern as defined under section 3 of the Small Business Act (15 
US.C. 632). 
SEC. 2305. AUTHORIZATION OF APPROPRIATIONS FOR EXPORT PRO-
MOTION PROGRAMS. 
(a) DEFINITION OF EXPORT PROMOTION PROGRAM.—Section 201(d) of 
the Export Administration Amendments Act of 1985 (15 U.S.C. 
4051(d)) is amended— 
(1) in paragraph (3) by striking "and" after the semicolon; 
(2) in paragraph (4) by striking the period and inserting "; 
and"; and 
(3) by adding at the end the following: 
"(5) the Market Development Cooperator Program established 
under section 2303 of the Export Enhancement Act of 1988, and 
assistance for trade shows provided under section 2304 of that 
Act.". 
(b) AUTHORIZATION OF APPROPRIATIONS.—(1) Section 202 of 
the 
Export Administration Amendments Act of 1985 (15 U.S.C. 4052) is 
amended to read as follows: 
"There are authorized to be appropriated to the Department of 
Commerce to carry out export promotion programs $123,922,000 for 
the fiscal year 1988, and $146,400,000 for each of the fiscal years 
1989 and 1990.". 
(2) In addition to funds otherwise available, there are authorized 
to be appropriated to the Department of Commerce to carry out 
sections 2303 and 2304 of this Act $6,000,000 for each of the fiscal 
years 1988,1989, and 1990. 
15 use 4725. 
SEC. 2306. UNITED STATES AND FOREIGN COMMERCIAL SERVICE PACIFIC 
RIM INITIATIVE. 
Japan. 
(a) IN GENERAL.—In order to encourage the export of United 
South Korea. 
States goods and services to Japan, South Korea, and Taiwan, the 
Taiwan. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1345 
United States and Foreign Commercial Service shall make a special 
effort to— 
(1) identify United States goods and services which are not 
being exported to the markets of Japan, South Korea, and 
Taiwan but which could be exported to these markets under 
competitive market conditions; 
(2) identify and notify United States persons who sell or 
provide such goods or services of potential opportunities identi-
fied under paragraph (1); 
(3) present, periodically, a list of the goods and services 
identified under paragraph (1), together with a list of any 
impediments to the export of such goods and services, to appro-
priate authorities in Japan, South Korea, and Taiwan, with a 
view toward liberalizing markets to such goods and services; 
(4) facilitate the entrance into such markets by United States 
persons identified and notified under paragraph (2); and 
(5) monitor and evaluate the results of efforts to increase the 
sale of goods and services in such markets. 
(b) REPORTS TO THE CONGRESS.—The Secretary of Commerce shall 
report periodically to the Congress on activities carried out under 
subsection (a). 
(c) DEFINITION.—As used in this section, the term "United States 
person" means— 
(1) a United States citizen; or 
(2) a corporation, partnership, or other association created 
under the laws of the United States or any State (including the 
District of Columbia or any commonwealth, territory, or posses-
sion of the United States). 
SEC. 2307. INDIAN TRIBES EXPORT PROMOTION. 
Marketing. 
(a) ASSISTANCE AUTHORIZED.—The Secretary of Commerce is au-
thorized to provide assistance to eligible entities for the develop-
ment of foreign markets for authentic American Indian arts and 
crafts. Eligible entities under this section include Indian tribes, 
tribal organizations, tribal enterprises, craft guilds, marketing co-
operatives, and individual Indian-owned businesses. 
(b) ACTIVITIES EUGIBLE FOR ASSISTANCE.—Activities eligible for 
assistance under this section include, but are not limited to, conduct 
of market surveys, development of promotional materials, financing 
of trade missions, participation in international trade fairs, direct 
marketing, and other market development activities. 
(c) ADMINISTRATION OF ASSISTANCE.—Assistance under this section 
shall be administered by the Secretary of Commerce under guide-
lines developed by the Secretary. Priority shall be given to projects 
which support the establishment of long term, stable international 
markets for American Indian arts and crafts and which are designed 
to provide the greatest economic benefit to American Indian 
artisans. 
(d) TECHNICAL AND OTHER ASSISTANCE.—The Secretary of Com-
merce shall provide technical assistance and support services to 
applicants eligible for and entities receiving assistance under this 
section for the purpose of helping them in identifying and entering 
appropriate foreign markets, compljdng with foreign and domestic 
legal and banking requirements regarding the export and import of 
arts and crafts, and utilizing import and export financial arrange-
ments, and shall provide such other assistance as may be necessary 
102 STAT. 1346 
PUBLIC LAW 100-418—AUG. 23, 1988 
to support the development of export markets for American Indian 
arts and crafts. 
(e) LIMITATION ON ASSISTANCE.—No assistance shall be provided 
under this section in support of any activity which includes the sale 
or marketing of any craft items other than authentic arts and crafts 
hand made or hand crafted by American Indian artisans. 
SEC. 2308. PRINTING AT OVERSEAS LOCATIONS. 
(a) PRINTING IN CONJUNCTION WITH EXPORT PROMOTION PRO-
GRAMS.—Section 201 of the Export Administration Amendments Act 
of 1985 (15 U.S.C. 4051) is amended by adding at the end the 
following: 
"(e) PRINTING OUTSIDE THE UNITED STATES.—(1) Notwithstanding 
the provisions of section 501 of title 44, United States Code, and 
consistent with other applicable law, the Secretary of Commerce, in 
carrying out any export promotion program, may authorize— 
"(A) the printing, distribution, and sale of documents outside 
the contiguous United States, if the Secretary finds that the 
implementation of such export promotion program would be 
more efficient, and if such documents will be distributed pri-
marily and sold exclusively outside the United States; and 
"(B) the acceptance of private notices and advertisements 
in connection with the printing and distribution of such 
documents. 
"(2) Any feesj received by the Secretary pursuant to paragraph (1) 
shall be deposited in a separate account or accounts which may be 
used to defray directly the costs incurred in conducting activities 
authorized by paragraph (1) or to repay or make advances to appro-
priations or other funds available for such activities.". 
SEC. 2309. LOCAL CURRENCIES UNDER PUBLIC LAW 480. 
Section 108(i) of the Agricultural Trade Development and Assist-
ance Act of 1954 (7 U.S.C. 1708(i)) is amended— 
(1) in paragraph (1) by striking "and"; 
(2) in paragraph (2) by striking the period and inserting 
"; and"; and 
(3) by adding at the end the following: 
"(3) the terms 'private sector development activity' and 'pri-
vate enterprise investment' include the construction of low- and 
medium-income housing and shelter.". 
SEC. 2310. OFFICE OF EXPORT TRADE. 
Section 104 of the Export Trading Company Act of 1982 (15 U.S.C. 
4003) is amended by adding at the end the following: "The office 
shall establish a program to encourage and assist the operation of 
other export intermediaries, including existing and newly formed 
export management companies.". 
15 use 4011 
SEC. 2311. REPORT ON EXPORT TRADING COMPANIES. 
^°^- 
Not later than 18 months after the date of the enactment of this 
Act, the Secretary of Commerce shall submit a report to the 
Committee on Banking, Housing, and Urban Affairs of the Senate, 
and to the Committee on Banking, Finance and Urban Affairs, the 
Committee on Foreign Affairs, and the (Dommittee on the Judiciary 
of the House of Representatives, on the activities of the Department 
of Commerce to promote and encourage the formation of new and 
the operation of existing and new export promotion intermediaries, 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1347 
including export management companies, export trade associations, 
bank export trading companies, and export trading compeinies. The 
report shall include a survey of the activities of export management 
companies, export trade associations, and those bank export trading 
companies and export trading companies established pursuant to 
the amendments made by title II of the Export Trading Company 
Act of 1982, and pursuant to title III of that Act. The report shall not 
contain any information subject to the protections from disclosure 
provided in that Act. 
Subtitle D—Export Controls 
SEC. 2401. REFERENCE TO THE EXPORT ADMINISTRATION ACT OF 1979. 
For purposes of this subtitle, the Export Administration Act of 
1979 shall be referred to as "the Act". 
PART 
I—EXPORT 
CONTROLS 
GENERALLY 
SEC. 2411. EXPORT LICENSE FEES. 
Section 4 of the Act (50 U.S.C. App. 2403) is amended by adding at 
the end the following: 
"(g) FEES.—No fee may be charged in connection with the submis-
sion or processing of an export license application.". 
SEC. 2412. MULTIPLE LICENSE AUTHORITY. 
Section 4(aX2) of the Act (50 U.S.C. App. 2403(aX2)) is amended— 
(1) in subparagraph (A) by striking the period at the end of 
the first sentence and inserting ", except that the Secretary 
may establish a type of distribution license appropriate for 
consignees in the People's Republic of CJhina."; and 
(2) in subparagraph (B) in the first sentence by inserting 
"(except the People's Republic of China)" after "controlled 
countries". 
SEC. 2413. DOMESTIC SALES TO COMMERCIAL ENTITIES OF CONTROLLED 
COUNTRIES. 
Section 5(aXl) of the Act (50 U.S.C. App. 2404(aXl)) is amended by 
inserting after the second sentence the following: "For purposes of 
the pre^ding sentence, the term 'affiliates' includes both govern-
mental entities and commercial entities that are controlled in fact 
by controlled countries.". 
SEC. 2414. AUTHORITY FOR REEXPORTS. 
Section 5(a) of the Act (50 U.S.C. App. 2404(a)) is amended by 
adding at the end the following: 
"(4XA) No authority or permission may be required under this 
section to reexport any goods or technology subject to the jurisdic-
tion of the United States to any country which maintains export 
controls on such goods or technol(^y cooperatively with the United 
States pursuant to the agreement of the group known as the Coordi-
nating Committee, or pursuant to an agreement described in subsec-
tion Os) of this section. The Secretary may require any person 
reexjporting any goods or technology under this subparagraph to 
notify the Secretary of such reexports. 
"(B) Notwithstanding subparagraph (A), the Secretary may re-
quire authority or permission to reexport the following: 
People's 
Republic 
of China. 
Science and 
technology. 
102 STAT. 1348 
PUBLIC LAW 100-418—AUG. 23, 1988 
Communications 
and 
telecommunications. 
Regulations. 
Science and 
technology. 
People's 
Republic 
of China. 
"(i) supercomputers; 
"(ii) goods or technology for sensitive nuclear uses (as defined 
by the Secretary); 
"(ill) devices for surreptitious interception of wire or oral 
communications; and 
"(iv) goods or technology intended for such end users as the 
Secretary may specify by r^^ation. 
"(5XA) Except as provided in subparagraph (B), no authority or 
permission may be required under this section to reexport any goods 
or technology subject to the jurisdiction of the United States from 
any country when the goods or technology to be reexported are 
incorporated in another good and— 
"(i) the value of the controlled United States content of that 
other good is 25 percent or less of the total value of the good; or 
"(ii) the export of the goods or technology to a controlled 
country would require only notification of the participating 
governments of the Ckx)rdinating (Committee. 
For purposes of this paragraph, the 'controlled United States con-
tent' of a good means those goods or technolc^y subject to the 
jurisdiction of the United States which are incorporated in the good, 
if the export of those goods or technology from the United States to 
a country, at the time that the good is exported to that country, 
would require a validated license. 
"(B) The Secretary may by rq^ation provide that subparagraph 
(A) does not apply to the reexport of a supercomputer which con-
tains goods or technology subject to the jurisdiction of the United 
States. 
"(6) Not later than 90 days after the date of the enactment of this 
paragraph, the Secretary shall issue r^ulations to carry out para-
graphs (4) and (5). Such regulations shall define the term 
supercomputer' for purposes of those paragraphs.". 
SEC 241S. EXPORTS 
TO 
COUNTRIES 
OTHER 
THAN 
CONTROLLED 
COUNTRIES. 
(a) O
O
O
O
M Ck)UNTRiKS.—Section 5a)X2) of the Act (50 U.S.C. App. 
2404(bX2)) is amended to read as follows: 
"(2XA) Except as provided in subparagraph (B), no authority or 
permission may be required under this section to export goods or 
technology to a country which maintains export controls on such 
goods or technology cooperatively with the United States pursuant 
to the agreement of the group known as the (Coordinating Commit-
tee or pursuant to an agreement described in subsection (k) of this 
section, if the export of such goods or technology to the People's 
Republic of China or a controlled country on the date of the enact-
ment of the Export Enhancement Act of 1988 would require only 
notification of the participating governments of the C!oordinating 
Committee. 
"(BXi) The Secretaxy may require a license for the export of goods 
or tedmology described in subparagraph (A) 
to 
such end users as the 
Secretuy may specify by regulation. 
"(ii) Tne Secretaxy may require any person exporting goods or 
technology under this paragraph to notify the Secretary of those 
coports. 
(Q The Secretary shall, within 3 months after the date of the 
enactment of the Export Enhancement Act of 1988, determine 
wldch counbiies referx^d to in subparagraph (A) are implementing 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1349 
an effective export control system consistent with principles agreed 
to in the Coordinating Committee, including the following: 
"(i) national laws providing appropriate civil and criminal 
penalties and statutes of limitations sufficient to deter potential 
violations; 
"(ii) a program to evaluate export license applications that 
includes sufficient technical expertise to assess the licensing 
status of exports and ensure the reliability of end-users; 
"(iii) an enforcement mechanism that provides authority for 
trained enforcement officers to investigate and prevent illegal 
exports; 
(iv) a system of export control documentation to verify the 
movement of goods and technology; and 
"(v) procedures for the coordination and exchange of informa-
tion concerning violations of the agreement of the Coordinating 
Committee. 
The Secretary shall, at least once each year, review the determina-
tions made under the preceding sentence with respect to all coun-
tries referred to in subparagraph (A). The Secretary may, as 
appropriate, add countries to, or remove countries from, the list 
of countries that are implementing an effective export control 
system in accordance with this subpcu-agraph. No authority or 
permission to export may be required for the export of goods or 
technology to a country on such list.". 
(b) COUNTRIES OTHER THAN COCOM COUNTRIES.—Section 5(b) of 
the Act (50 U.S.C. App. 2404(b)) is amended by adding at the end the 
following: 
"(3XA) No authority or permission may be required under this 
section to export to any country, other than a controlled country, 
any goods or technology if the export of the goods or technology to 
controlled countries would require only notincation of the partici-
pating governments of the Coordinating CJommittee. 
"(B) The Secretary may require any person exporting any goods or 
technology under subparagraph (A) to notify the Secretary of those 
exports. . 
SEC. 2416. CONTROL LIST. 
(a) RESOLUTION OF DISPLTES.—Section 5(cX2) of the Act (50 U.S.C. 
App. 2404(cX2)) is amended by striking the last sentence and insert-
ing the following: "If the Secretary and the Secretary of Defense are 
unable to concur on such items, as determined by the Secretary, the 
Secretary of Defense may, within 20 days after receiving notification 
of the Secretan^'s determination, refer the matter to me President 
for resolution. The Secretary of Defense shall notify the Secretary of 
any such referral. The President shall, not later than 20 days after 
such referral, notify the Secretary of his determination with respect 
to the inclusion of such items on the list. Failure of the Secretaiy of 
Defense to notify the President or the Secretary, or failure of the 
President to notify the Secretary, in accordance with this para-
graph, shall be deemed by the Secretary to constitute concurrence in 
the implementation of the actions proposed by the Secretary regard-
ing the inclusion of such items on tlie list.". 
(b) CONDUCT OF LIST REVIEWS.— 
(1) CONTROL UST.—Section 5(cX3) of the Act is amended to 
read as follows: 
"(3) The Secretary shall conduct partial reviews of the list estab-
lished pursuant to this subsection at least once each calendar 
Law 
enforcement and 
crime. 
Law 
enforcement and 
crime. 
Records. 
Science and 
technology. 
Science and 
technology. 
President of 
U.S. 
102 STAT. 1350 
PUBLIC LAW 100-418—AUG. 23, 1988 
Federal 
Register, 
publication. 
Federal 
Register, 
publication. 
Science and 
technology. 
Science and 
technology. 
Reports. 
quarter in order to carry out the policy set forth in section 3(2XA) of 
this Act and the provisions of this section, and shall promptly make 
such revisions of the list as may be necessary after each such review. 
Before beginning each quarterly review, the Secretary shall publish 
notice of that, review in the Federal Register. The Secretary shall 
provide a 30-day period during each review for comment and the 
submission of data, with or without oral presentation, bv interested 
Grovemment agencies and other affected or potentially affected 
parties. After consultation with appropriate Grovemment agencies, 
the Secretary shall make a determination of any revisions in the list 
within 30 days after the end of the review period. The concurrence 
or approval of any other department or agency is not required 
before any such revision is made. The Secretary shall publish in the 
Federal Register any revisions in the list, with an explanation of the 
reasons for the revisions. The Secretary shall use the data developed 
from each review in formulating United States proposals relating to 
multilater£d export controls in the group known as the Coordinating 
Committee. The Secretary shall further assess, as part of each 
review, the availability from sources outside the United States of 
goods and technology comparable to those subject to export controls 
imposed under this section. All goods and technology on the list 
shall be reviewed at least once each year. The provisions of this 
paragraph apply to revisions of the list which consist of removing 
items from the list or making changes in cat^ories of, or other 
specifications in, items on the list.". 
(2) LIST OF MIUTARILY CRITICAL TECHNOLOGIES.—Section 5(dX5) 
of the Act (50 U.S.C. App. 2404(dX5)) is amended in the first 
sentence by striking "at least annually" and inserting "on an 
ongoing basis". 
(3) TECHNICAL ADVISORY COMMITTEES.—(A) Section 5(c) of the 
Act is amended by adding at the end the following: 
"(4) The appropriate technical advisory committee appointed 
under subsection (h) of this section shall be consulted by the Sec-
retaiy with respect to changes, pursuant to paragraph (2) or (3), in 
the list established pursuant to this subsection, and such technical 
advisory committee may submit recommendations to the Secretary 
with respect to such changes. The Secretary shall consider the 
recommendations of the technical advisory committee and shall 
inform the committee of the disposition of its recommendations.". 
(c) CONTROL LIST REDUCTION.— 
(1) IN GENERAL.—Section 5(c) of the Act (50 U.S.C. App. 
2404(c)) (as amended by subsection (bX3) of this section) is 
further amended by adding at the end tiie following: 
"(5XA) Not later than 6 months after the date of the enactment of 
this paragraph, the following shall no longer be subject to export 
controls under this section: 
"(i) All goods or technology the export of which to controlled 
countries on the date of the enactment of the Export Enhance-
ment Act of 1988 would require only notification of the partici-
pating governments of the Coordinating Committee, except for 
those goods or technology on which the Coordinating Committee 
agrees to maintcdn such notification requirement. 
"(ii) All medical instruments and equipment, subject to the 
provisions of subsection (m) of this section. 
"(6) The Secretary shall submit to the Congress annually a report 
setting forth the goods and tecYinology from which export controls 
have been removM under this paragraph.". 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1351 
Science and 
technology. 
President of 
U.S. 
Reports. 
(2) ELIMINATION OF UNILATERAL CONTROLS.—Section 5(c) of the 
Act (as amende by subsection (bX3) and paragraph (1) of this 
subsection) is further amended by addmg at the end the 
following: 
"(6XA) Notwithstanding subsection (0 or (hX6) of this section, any 
export control imposed under this section which is maintained 
unilaterally by the United States shall expire 6 months after the 
date of the enactment of this paragraph, or 6 months after the 
export control is imposed, whichever date is later, except that— 
"(i) any such export controls on those goods or technology for 
which a determination of the Secretary that there is no foreign 
availability has been made under subsection (f) or (hX6) of thus 
section before the end of the applicable 6-month period and is in 
effect may be renewed for periods of not more than 6 months 
each, and 
"(ii) any such export controls on those goods or technology 
with respect to which the President, by the end of the applicable 
6-month period, is actively pursuing n^otiations with other 
countries to achieve multilateral export controls on those goods 
or technology may be renewed for 2 periods of not more than 6 
months each. 
"(B) EbEport controls on goods or technolt^y described in clause (i) 
or (ii) of subparagraph (A) may be renewed only if, before each 
renewal, the President submits to the (Congress a report setting 
forth all the controls being renewed and stating the specific reasons 
for such renewal.". 
(3) REVIEW OF CERTAIN LOW TECHNOLOGY ITEMS.—Section 5(c) 
of the Act (as amended by subsection (bX3) and paragraphs (1) 
and (2) of this subsection) is further amended by adding at the 
end the following: 
"(7) Notwithstanding any other provision of this subsection, after 
1 year has elapsed since the last review in the Federal Register on 
any item withm a cat^ory on the control list the export of which to 
the People's Republic of (]!hina would require only notification of the 
members of the group known as the (joordinating C>>mmittee, an 
export license applicant may file an all^ation with the Secretary 
that such item has not been so reviewed within such 1-year period. 
Within 90 days after receipt of such all^ation, the Secretary— 
"(A) shall determine the truth of the cdl^ation; 
"(B) shall, if the allegation is confirmed, commence and com-
plete the review of the item; and 
"(C) shall, pursuant to such review, submit a finding for 
publication in the Federal Roister. 
In such finding, the Secretary shall identify those goods or tech-
nology which shall remain on the control list and those goods or 
technology which shall be removed from the control list. If such 
review and submission for publication are not completed within that 
90-day period, the goods or technology encompa^ed by such item 
shall immediately be removed from the control list.". 
SEC. 2417. TRADE SHOWS. 
Section 5(e) of the Act (50 U.S.C. App. 2404(e)) is amended by 
adding at the end the following: 
"(6) Any application for a license for the export to the People's People's 
Republic of Quna of any good on which export controls are in effect Republic 
under this section, without r^ard to the technical specifications of °^ Chma. 
"Federal 
Register, 
publication. 
Science and 
technology. 
102 STAT. 1352 
PUBLIC LAW 100-418—AUG. 23, 1988 
Science and 
technology. 
Defense and 
national 
security. 
Regulations. 
the good, for the purpose of demonstration or exhibition at a trade 
show shall carry a presumption of approval i
f
— 
"(A) the United States exporter retains title to the good 
during the entire period in which the good is in the People's 
Republic of China; and 
* (B) the exporter removes the good from the People's Republic 
of China no later than at the conclusion of the trade show.". 
SEC. 2418. FOREIGN AVAILABILITY.— 
(a) IN GENERAL.—Section 5(f) of the Act (50 U.S.C. App. 2404(D) is 
amended to read as follows: 
"(f) FOREIGN AVAILABILITY.— 
"(1) FOREIGN AVAILABILITY TO CONTROLLED COUNTRIES.—(A) 
The Secretary, in consultation with the Secretary of Defense 
and other appropriate Government agencies and with appro-
priate technical advisory committees established pursuant to 
subsection (h) of this section, shall review, on a continuing basis, 
the availability to controlled countries, from sources outside the 
United States, including countries which participate with the 
United States in multilateral export controls, of cuiy goods or 
technology the export of which requires a validated license 
under this section. In any case in which the Secretary deter-
mines, in accordance with procedures and criteria which the 
Secretary shall by r^^ation establish, that any such goods or 
technology are available in fact to controlled countries from 
such sources in sufficient quantity and of comparable quality so 
that the requirement of a validated license for the export of 
such goods or technology is or would be ineffective in achieving 
the purpose set forth in subsection (a) of this section, the 
Secretaiy may not, after the determination is made, require a 
validated license for the export of such goods or technology 
during the period of such foreign availability, unless the Presi-
dent determines that the alienee of export controls under this 
section on the goods or technology would prove detrimental to 
the national security of the United States. In any case in which 
the President determines under this paragraph that export 
controls imder this section must be maintained notwithstanding 
foreign availability, the Secretary shall publish that determina-
tion, together with a concise statement of its basis and the 
estimated economic impact of the decision. 
"(B) The Secretary shall approve any application for a vali-
dated license which is required under this section for the export 
of any goods or technology to a controlled country and which 
meets all other requirements for such an application, if the 
Secretaiy determines that such goods or technology will, if the 
license is denied, be available in fact to such country from 
sources outside the United States, including countries which 
participate with the United States in multilateral export con-
trols, in sufficient quantity and of comparable quality so that 
denial of the license would be ineffective in achieving the 
purpose set forth in subsection (a) of this section, unless the 
President determines that approving the license application 
would prove detrimental to the national security of the United 
States. In any case in which the Secretary makes a determina-
tion of foreign availability under this subparagraph with re-
spect to any goods or technology, the Secretary shall determine 
PUBLIC LAW 100-418—AUG. 23,1988 
102 STAT. 1353 
whether a determination of foreign availability under subpara-
graph (A) with respect to such goods or technology is warranted. 
"(2) FORSIGN AVAILABILITy T
O O
T
H
E
R THAN C
O
N
T
R
O
I
X
E
D COUN-
TRIES.—<A) The Secretary shall review, on a continuing basis, 
the availability to countries other than controlled countries, 
from sources outside the United States, of any goods or tech-
nology the export of which requires a validated license under 
this section. If the Secretary determines, in accordance with 
procedures which the Secretary shall establish, that any goods 
or technology in sufficient quantity and of comparable quality 
are available in fact from sources outside the United Statcas 
(other than availability under license from a country which 
maint4iins export controls on such goods or technology coopera-
tively with the United States pursuant to the agreement of the 
group known as the Coordinating Committee or pursuant to an 
agreement described in subsection (k) of this section), the Sec-
retary may not, after the determination is made and during the 
period of such foreign availability, require a validated license 
for the export of such goods or tecimology to any country (other 
than a controlled country) to which the country from which the 
goods or technology is available does not place controls on the 
export of such goods or technology. The requirement with re-
spect to a validated license in the preceding sentence shall not 
apply if the President determines that the absence of export 
controls under this section on the goods or technologv would 
E
rove detrimental to the national securibr of the United States, 
n any case in which the President aetermines under this 
paragraph that export controls under this section must be 
maintained notwithstandmg foreign availability, the Secretary 
shall publish that determination, together with a concise state-
ment of its basds and the estimated econmnic impact of the 
decision. 
"(B) Hie Secretary shall approve any application for a vali-
dated license which is required under this section for the export 
of any goods or technoloeir to a country (other than a controlled 
country) and which meets all other requirements for such an 
application, if the Secretary determines that such goods or 
technology are available from foreign sources to Uiat country 
under the criteria established in subparagraph (A), unless the 
President determines that approving the license application 
would prove detrimental to the national security of the United 
States. In any case in which the Secretary makes a determina-
tion of foreign availability under this subparagraph with re-
spect to any goods or technology, the Secretary shall determine 
whether a determination of foreign avaUabUity under subpara-
graph (A) with respect to such goods or technology is warranted. 
"(3) PROCEDURES FOR MAKING DEnERinNAnoNS.—<A) The Sec-
retary shall make a foreign availability determination under 
paragraph (1) or (2) on the Secretary's own initiative or upon 
receipt of an allegation from an export license aj^licant mat 
such availability exists. In making an^ such determination, the 
Secretary shall accept the representations of applicants made in 
writing and supported by reasonable evidence, unless such rep-
resentations are contradicted l^ reliable evidence, including 
scientific or physical examination, expert opinion based upon 
adec^te factual information, or intelligence information. In 
making determinations of foreign avulability, the Secretary 
102 STAT. 1354 
PUBLIC LAW 100-418—AUG. 23, 1988 
Federal 
Register, 
publication. 
Federal 
Register, 
publication. 
President of 
U.S. 
may consider such factors as cost, reliability, the availability 
and reliability of spare parts and the cost and quality thereof, 
maintenance programs, durability, quality of end products pro-
duced by the item proposed for export, and scale of production. 
For purposes of this subparagraph, 'evidence' may include such 
items as foreign manufacturers catalogues, brochures, or oper-
ations or maintenance manuals, articles from reputable trade 
publications, photographs, and depositions based up)on eye-
witness accounts. 
"(B) In a case in which an allegation is received from an 
export license applicant, the Secretary shall, upon receipt of the 
allegation, submit for publication in the Federal Register notice 
6f such receipt. Within 4 months after receipt of the allegation, 
the Secretary shall determine whether the foreign availability 
exists, and shall so notify the applicant. If the Secretary has 
determined that the foreign availability exists, the Secretary 
shall, upon making such determination, submit the determina-
tion for review to other departments and agencies as the Sec-
retary considers appropriate. The Secretary^ determination of 
foreign availability does not require the concurrence or ap-
proval of any official, department, or agency to which such a 
determination is submitted. Not later than 1 month after the 
Secretary makes the determination, the Secretary shall respond 
in writing to the applicant and submit for publication in the 
Federal Register, that— 
"(i) the foreign availability does exist and— 
"(I) the requirement of a validated license has been 
removed, 
"(II) the President has determined that export con-
trols under this section must be maintained notwith-
standing the foreign availability and the applicable 
steps are being taken under paragraph (4), or 
(III) in the case of a foreign availability determina-
tion under paragraph (1), the foreign availability deter-
mination will be submitted to a multilateral review 
process in accordance with the agreement of the 
Coordinating Committee for a period of not more than 
4 months beginning on the date of the publication; or 
"(ii) the foreign availability does not exist. 
In any case in which the submission for publication is not made 
within the time period specified in the preceding sentence, the 
Secretary may not thereafter require a license for the export of 
the goods or technology with respect to which the foreign 
avEulability allegation was made. In the case of a foreign avail-
ability determination under paragraph (1) to which clause (iXHD 
applies, no license for such export may be reauired after the end 
of the 9-month period b^inning on the date on which the 
allegation is received. 
"(4) NEGOTIATIONS TO ELIMINATE FOREIGN AVAILABILITY.—(A) 
In any case in which export controls are maintained under this 
section notwithstanding foreign availability, on account of a 
determination by the {^resident that the absence of the controls 
would prove detrimental to the national security of the United 
StatM, the President shall actively pursue n^otiations with the 
governments of the appropriate foreign countries for the pur-
pose of eliminating such availability. No later than the 
commencement of such n^otiations, the President shall notify 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1355 
in writing the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on Foreign Affairs of 
the House of Representatives that he has begun such negotia-
tions and why he beUeves it is important to national security 
that export controls on the goods or technology involved be 
maintained. 
"(B) If, within 6 months after the President's determination 
that export controls be maintained, the foreign availability has 
not been eliminated, the Secretarv may not, after the end of 
that 6-month period, require a validated license for the export of 
the goods or technol(^ involved. The President may extend the 
6Hmonth period described in the preceding sentence for an 
additional period of 12 months if the President certifies to the 
Congress that the negotiations involved are progressing and 
that the absence of the export controls involved would prove 
detrimental to the national security of the United States. When-
ever the President has reason to believe that goods or tech-
nology subject to export controls for national security purposes 
by the United States may become available from other coun-
tries to controlled countries and that such availability can be 
prevented or eliminated by means of n^otiations with such 
other countries, the President shall promptly initiate negotia-
tions with the governments of such other countries to prevent 
such foreign availability. 
"(C) After an agreement is reached with a country pursuant 
to n^otiations under this paragraph to eliminate or prevent 
foreign availability of goods or technolc^, the Secretary may 
not require a validated license for the export of such goods or 
technology to that coimtry. 
"(5) EXPEDITED UCENSES FOR ITEBIS AVAILABLE TO COUNTRIES 
O
T
H
E
R T
H
A
N O
O
N
T
R
O
U
.
E
D C
O
U
N
T
R
I
E
S
.
—
(
A
) In any case in which 
the Secretary finds that any goods or technology from foreign 
sources is of similar quality to goods or technology the export of 
which requires a validated license under this section and is 
available to a country other than a controlled country without 
effective restrictions, the Secretary shall designate such goods 
or technology as eligible for export to such country under this 
paragraph. 
"(B) In the case of goods or technol(^y designated under 
subparagraph (A), then 20 working days after the date of formal 
filing with the Secretary of an individual validated license 
application for the export of tiiose goods or technoloe^ to an 
eligible country, a license for the transaction specified in the 
application shall become valid and effective and the goods or 
technology are authorized for export pursuant to such license 
unless the license has been denied by the Secretary on account 
of an inappropriate end user. The Secretary may extend the 20-
day period provided in the preceding sentence for an additional 
period of lo days if the Secretary requires additional time to 
consider the application and so notifies the applicant. 
"(C) The Secretary may make a foreign availability deter-
mination under subparagraph (A) on the Secretary's own initia-
tive, upon receipt of an all^ation from an export license 
applicant that such availability exists, or upon the submission 
of a certification by a technical advisory committee of appro-
priate jurisdiction that such availability exists. Upon receipt of 
such an allegation or certification, the Secretary shall publish 
President of 
U.S. 
Federal 
Register, 
publicatioiv 
102 STAT. 1356 
PUBLIC LAW 100-418—AUG. 23, 1988 
Establishment. 
Contracts. 
Federal 
Register, 
publication. 
notice of such allegation or certification in the Federal Register 
and shall make the foreign availability determination within 30 
days after such receipt and publish the determination in the 
Federal Register. In the case of the failure of the Secretary to 
make and publish such determination within that 30^ay 
period, the goods or technology involved shall be deemed to be 
designated as eligible for export to the country or countries 
involved, for purposes of subparagraph (B). 
"(D) The provisions of paragraphs (1), (2), (3), and (4) do not 
apply with respect to determinations of foreign availability 
under this paragraph. 
"(6) OFFICE OF FOREIGN AVAILABILITY.—The Secretary shall 
establish in the Department of Commerce an Office of Foreign 
Av£dlability, which shall be under the direction of the Under 
Secretary of Commerce for Export Administration. The Office 
shall be responsible for gathering and analyzing all the nec-
essary information in order for the Secretary to make deter-
minations of foreign availability under this Act. The Secretary 
shall make available to the Committee on Foreign Affairs of the 
House of Representatives and the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate at the end of each &-month 
period during a fiscal year information on the operations of the 
Office, and on improvements in the Government's ability to 
assess foreign availability, during that 6-month period, includ-
ing information on the training of personnel, the use of comput-
ers, and the use of Commercial Service Officers of the United 
States and Foreign Commercial Service. Such information shall 
also include a description of repli;esentative determinations 
made under this Act during that 6-inonth period that foreign 
availability did or did not exist (as the C€ise may be), together 
with an explanation of such determinations. 
"(7) SHARING OF INFORMATION.—Each department or agency 
of the United States, including any intelligence agency, and all 
contractors with any such department or agency, shall, upon 
the request of the Secretary and consistent with the protection 
of intelligence sources and methods, furnish information to the 
Office of Foreign Availability concerning foreign availability of 
goods and technolc^ subject to export controls under this Act. 
Each such department or agency shall allow the Office of 
Foreign Availability access to any information from a labora-
tory or other facility within such department or agency. 
(8) REMOVAL OF CONTROLS ON LESS SOPHISTICATED GOODS OR 
TECHNOLOGY.—In any C£ise in which Secretary may not, pursu-
ant to paragraph (1), (2), (3), or (4) of this subsection or para-
graph (6) of subsection (h) of this section, require a validated 
license for the export of goods or technology, then the Secretary 
may not require a validated license for the export of any similar 
goods or technology whose function, technological approach, 
performance thresholds, and other attributes that form the 
basis for export controls under this section do not exceed the 
technical parameters of the goods or technolc^ry from which 
the validated license requirement is removed under the ap-
plicable paragraph. 
"(9) 
NOTICE OF ALL FOREIGN AVAILABILITY ASSESSMENTS.— 
Whenever the Secretary undertakes a foreign availability 
assessment under this subsection or subsection (hX6), the Sec-
PUBLIC LAW 100-418—AUG. 23,1988 
102 STAT. 1357 
retary shall publish notice of such assessment in the Federal 
Renter. 
(10) AVAILABILITY DEFINED.—For purposes of this subsection 
and subsections (f) and (h), the term 'available in fact to con-
trolled countries' includes production or availability of any 
goods or technology in any country— 
"(A) from which the goods or technology is not restricted 
for export to any controlled country; or 
"(B) in which such export restrictions are determined by 
the Secretary to be inefTective. 
For purposes of subparagraph (B), the mere inclusion of goods or 
technology on a list of goods or technology subject to bilateral or 
multilateral national securitv export controls shall not alone 
constitute credible evidence tnat a country provides an effective 
means of controlling the export of such goods or technology to 
controlled countries?'. 
(b) TECHNICAL ADVISORY COMMITTEE DETERMINATIONS.—Section 
5(hX6) of the Act (50 U.S.C. App. 2404(hX6)) is amended by adding at 
the end the following: "After an agreement is reached with a 
country pursuant to n^otiations under this paragraph to eliminate 
forei|^ availability of goods or technology, the Secretary may not 
require a validated license for the export of such goods or technolc^ 
to that country.". 
(c) TECHNICAL AMENDMENT.—Section 14(aX8) of the Act (50 U.S.C. 
2413(aX8)) is amended by striking "5(£X5)" and inserting "5(fX6)". 
SEC. 2419. REVIEW OF TECHNOLOGY LEVELS. 
Section 5(g) of the Act (50 U.S.C. 2404te)) is amended— 
(1) by inserting "(1)" immediately before the first sentence; 
and 
(2) by adding at the end the following: 
"(2XA) In carrying out this subsection, the Secretary shall conduct 
annual reviews of uie performance levels of goods or technology— 
"(i) which are eligible for export under a distribution license, 
"(ii) below which exports to the People's Republic of China 
require only notification of the governments participating in 
the f
T
T
O
u
p known as the Coordinating Committee, and 
"(lii) below which no authority or permission to export may be 
required under subsection (bX2) or (DXS) of this section. 
The Secretary shall make appropriate adjustments to such perform-
ance levels based on these reviews. 
"(B) In any case in which the Secretary receives a request which— 
"(i) is to revise the qualification requirements or minimum 
thresholds of any goods eligible for export under a distribution 
license, and 
"(ii) is made by an exporter of such goods, representatives of 
an industry which produces such goods, or a technical advisory 
committee established under subsection (h) of this section, 
the Secretary, after consulting with other appropriate Government 
agenci«i and technical advisory committees established under 
subsection (h) of this section, shall determine whether to make such 
revision, or some other appropriate revision, in such qualification 
requirements or minimum thresholds. In making this determina-
tion, the Secretary shall take into accoimt the availability of the 
goods from sources outside the United States. The Secretary shall 
make a determination on a request made under this subparagraph 
within 90 days after the date on which the request is filed. If the 
50 u s e app. 
2413. 
50 use app. 
2404. 
People's 
Republic of 
China. 
Federal 
Register, 
publication. 
102 STAT. 1358 
PUBLIC LAW 100-418—AUG. 23, 1988 
50 u s e app. 
2404. 
50 use app. 
2404. 
Defense and 
national 
security. 
50 use app. 
2405. 
Secretary's determination pursuant to such a request is to make a 
revision, such revision shall be implemented within 120 days after 
the date on which the request is filed and shall be published in the 
Federal Register.". 
SEC. 2420. FUNCTIONS OF TECHNICAL ADVISORY COMMITTEES. 
(a) CONSULTATION ON REVISIONS OF CONTROL LIST AND ON REGULA-
TIONS.—Section 5(hX2) of the Act (50 U.S.C. 2404(hX2)) is amended— 
(1) by redesignating clause (E) as clause (F); and 
(2) by striking clause (D) and inserting the following: "(D) 
revisions of the control list (as provided in subsection (cX4)), 
including proposed revisions of multilateral controls in which 
the United States participates, (E) the issuance of r^ulations, 
and". 
(b) REVIEW OP REGULATIONS.—Section 15(b) of the Act (50 U.S.C. 
App. 2414(b)) is amended in the third sentence— 
(1) by striking "and such other" and inserting "such other"; 
and 
(2) by inserting after "appropriate" the following: ", and the 
appropriate technical advisory committee". 
SEC. 2421. NEGOTIATIONS WITH COCOM. 
(a) NEGOTIATING OBJECTIVES.—Section 5(i) of the Act (50 U.S.C. 
App. 2404(i)) is amended by striking "llie President" and inserting 
"Recc^nizing the ineffectiveness of unilateral controls and the 
importance of uniform enforcement measures to the effectiveness of 
multilateral controls, the President". 
(b) INDUSTRY REPRESENTATIVE TO CCXX)M.—Section 5(i) of the Act 
is amended by adding at the end the following: 
"For purposes of reviews of the International Control List, the 
President may include as advisors to the United States del^ation to 
the (Committee representatives of industry who are knowledgeable 
with respect to the items being reviewed.". 
SEC. 2422. GOODS CONTAINING MICROPROCESSORS OR CERTAIN OTHER 
PARTS OR COMPONENTS. 
Section 5(m) of the Act (50 U.S.C. 2404(m)) is amended to read as 
follows: 
"(m) GOODS CONTAINING CONTROLLED PARTS AND COMPONENTS.— 
Export controls mav not be imposed under this section, or under ftny 
other provision of law, on a good solely on the basis that the good 
contains parts or components subject to export controls under this 
section if such parts or components— 
"(1) are essential to the functioning of the good, 
"(2) are customarily included in sales of the good in countries 
other than controlled countries, and 
"(3) comprise 25 percent or less of the total value of the ^ood, 
unless the good itself, if exported, would bv virtue of the functional 
characteristics of the good as a whole make a significant contribu-
tion to the militcuy potential of a controlled countir which would 
prove detrimental to the national security of the United States.". 
SEC. 2423. FOREIGN POLICY CONTROLS. 
(a) DiPLOBfATic ALTBRNATTVES.—Section 6(a) of the Act (50 U.S.C. 
2405(a)) is amended by adding at the end the following: 
"(6) Before imposing, expanding, or extending export controls 
under this section on exports to a country which can use goods. 
PUBLIC LAW 100-418—AUG. 23,1988 
102 STAT. 1359 
President of 
U.S. 
technology, or information available from foreign sources and so 
incur little or no economic costs as a result of the controls, the 
President should, through diplomatic means, employ alternatives to 
export controls which offer opportunities of distinguishing the 
United States from, and expressing the displeasure of the United 
States with, the specific actions of that couhtiy in response to which 
the controls are proposed. Such alternatives include private discus-
sions with foreign leaders, public statements in situations where 
private diplomacy is unavailable or not effective, withdrawal of 
ambassadors, and reduction of the size of the diplomatic staff that 
the country involved is permitted to have in the United States.". 
(b) SPARE PARTS.—Section 6 of the Act (50 U.S.C. App. 2405) is 
amended by adding at the end the following: 
"(p) SPARE PARTS.—(1) At the same time as the President imposes 
or expands export controls under this section, the President shall 
determine whether such export controls will apply to replacement 
parts for parts in goods subject to such export controls. 
"(2) With respect to export controls imposed under this section 
before the date of the enactment of this subsection, an individual 
validated export license shall not be required for replacement parts 
which are exported to replace on a one-for-one basis parts that were 
in a good that was lawfully exported from the United States, unless 
the President determines that such a license should be required for 
such parts.". 
SEC. 2424. EXPORTS OF DOMESTICALLY PRODUCED CRUDE OIL. 
(a) TECHNICAL AMENDMENT.—Section 7(d) of the Act (50 U.S.C. 
App. 2406(d)) is amended by striking paragraph (4). 
(b) CRUDE OIL STUDY.— 
(1) REVIEW OF EXPORT RESTRICTIONS ON CRUDE OIL.—The Sec-
retary of Commerce, in consultation with the Secretary of 
Energy, shall undertake a comprehensive review to assess 
whether existing statutory restrictions on the export of crude 
oil produced in the contiguous United States are adequate to 
S
rotect the energy and national security interests of the United 
tates and American consumers. Takiiig into account exports California, 
licensed since 1983 and potential exports of heavy crude oil 
produced in California, u e review shall assess the efif(Kt of 
increased exports of crude oil produced in the contiguous United 
States on— 
(A) the adequacy of domestic supplies of crude oil and 
refined petroleum products in meeting United States 
energy and national security needs; 
(B) the quantity, quality, and retail price of petroleum 
products available to consumers in the United States gen-
erally and on the West Coast in particular; 
(C) the overall trade deficit of the United States; 
(D) acquisition costs of crude oil by domestic petroleum 
refiners; 
(E) the 
financial 
viability of sectors of the domestic petro-
leum industry (including independent refiners, distributors, 
marketers, and pipeline carriers); and 
(F) the United States tanker fleet (and the industries that 
support it), with particular emphasis on the availability of 
militarily useful tankers to meet anticipated national de-
fense requirements. 
50 u s e app. 
2406 note. 
Defense and 
national 
security. 
102 STAT. 1360 
PUBLIC LAW 100-418—AUG. 23, 1988 
Defense and 
national 
security. 
(2) PuBUC HEARING AND COMMENT.—The Secretary of Com-
merce shall provide notice and a reasonable opportunity for 
public hearing and comment on the review conducted pursuant 
to this subsection. 
(3) CONSULTATIONS WITH OTHER AGENCIES.—The Secretary of 
Commerce shall consult with the Secretary of Defense, the 
Secretary of the Interior, and the Secretary of Transportation, 
in addition to the Secretary of Energy, in undertaking the 
review pursuant to this subsection. 
(4) FINDINGS, OPTIONS, AND RECOMMENDATIONS.—After taking 
public comment and consulting with appropriate State and 
Federal officials, the Secretary of Commerce, in consultation 
with the Secretary of Energy, shall develop findings, options, 
and recommendations regarding the adequacy of existing statu-
tory restrictions on the export of crude oil produced in the 
contiguous United States in protecting the energy and national 
security 
interests of the United States and American 
consumers. 
(5) CONSULTATIONS AND REPORT.—In carrying out this subsec-
tion, the Secretary of Commerce shall consult with the Commit-
tee on Foreign Affairs and the Committee on Energy and 
Commerce of the House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs, the Committee on 
Commerce, Science, and Transportation, and the Committee on 
Energy and Natural Resources of the Senate. Not later than 12 
months after the date of the enactmeilt of this Act, the Sec-
retary shall tr£insmit to each of those committees a report 
which contains the results of the review undertaken pursuant 
to this subsection and the findings, options, and recommenda-
tions developed under paragraph (4). 
SEC. 2425. PROCEDURES FOR LICENSE APPLICATIONS. 
(a) REVIEW OF LICENSE APPUCATIONS BY THE SECRETARY OF 
DEFENSE.—Section 10(g) of the Act (50 U.S.C. App. 2409(g)) is 
amended— 
(1) in paragraph (2XA) by inserting "and the Secretary" after 
"to the President"; 
(2) by inserting before the last sentence of paragraph (2) the 
following: 
"Whenever the Secretary of Defense makes a recommendation to 
the President pursuant to paragraph (2XA), the Secretary shall also 
submit his recommendation to the President on the request to 
export if the Secretary differs with the Secretary of Defense."; 
(3) by adding at the end of paragraph (2) the following: "If the 
Secretary of Defense fails to make a recommendation or 
notification under this paragraph within the 20-day period 
specified in the third sentence, or if the President, within 20 
days after receiving a recommendation from the Secretary of 
Defense with respect to an export, fails to notify the Secretary 
that he approves or disapproves the export, the Secretary shall 
approve or deny the request for a license or other authority to 
export without such recommendation or notification."; and 
(4) by strikiiig paragraph (4). 
(b) REPORT BY SECRETARIES OF COMMERCE AND DEFENSE.—The 
Secretary of Commerce and the Secretary of Defense shall each 
evaluate and, not later than 4 months after the date of the enact-
ment of this Act, shall jointly prepare and submit a report to the 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1361 
Committee on Foreign Affairs o^ the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs of the 
Senate on the review by the Department of Defense for national 
security purposes as provided in the Export Administration Act of 
1979, of export license applications for exports to countries other 
than controlled countries under section 5(bXl) of that Act 
(c) REPORT ON SMALL BUSINESSES.—Section 10(m) 
of the Act 
(50 
U.S.C. App. 2409(m)) is amended by adding at the end the following: 
"The Secretary shall, not later than 120 days after the date of the 
enactment of the Export Enhancement Act of 1988, report to the 
Congress on steps taken to implement the plan developed under this 
subsection to assist small businesses in the export licensing applica-
tion process.". 
SEC. 2426. VIOLATIONS. 
Section 11(h) of the Act (50 U.S.C. App. 2410(h)) is amended— 
(1) in the first sentence— 
(A) by inserting "(1)" before "No"; and 
(B) by inserting after "violation o f the following: "this 
Act (or any regulation, license, or order issued under this 
Act), any regulation, license, or order issued under the 
International Emergency Economic Powers Act,"; and 
(2) by adding at the end the following: 
"(2) The Secretary may exercise the authority under paragraph (1) 
with respect to any person related, through affiliation, ownership, 
control, or position of responsibility, to any person convicted of any 
violation of law set forth in paragraph (1), upon a showing of such 
relationship with the convicted party, and subject to the procedures 
set forth in section 13(c) of this Act.". 
SEC. 2427. ENFORCEMENT. 
Section 12(aX2XB) of the Act (50 U.S.C. App. 2411(aX2XB)) is 
amended by adding at the end the following: "Tlie Customs Service 
may not detain for more than 20 days any shipment of goods or 
technology eligible for export under a general license under section 
4(aX3). In a case in which such detention is on account of a disagree-
ment between the Secretary and the head of any other department 
or agency with export license authority under other provisions of 
law concerning the export license requirements for such goods or 
technology, such disagreement shall be resolved within that 20-day 
period. At the end of that 20-day period, the Customs Service shall 
either release the goods or technology, or seize the goods or tech-
nology as authorized by other provisions of law.". 
SEC. 2428. ADMINISTRATIVE PROCEDURE AND JUDICIAL REVIEW. 
(a) JUDICIAL REVIEW.—(1) Section 13(c) of the Act (50 U.S.C. App. 
2412(c)) is amended— 
(A) in the last sentence of paragraph (1) by inserting before 
the period ", except as provided in paragraph (3)"; 
(B) by redesignating paragraph (3) as paragraph (4); and 
(C) by inserting after paragraph (2) the following: 
"(3) The order of the Secretary under paragraph (1) shall be final 
except that the charged party may, within 15 days after the order is 
issued, appeal the order in the United States Court of Appeals for 
the District of Columbia Circuit, which shall have jurisdiction of the 
appeal. The court may, while the appeal is pending, stay the order of 
the Secretary. The court may review only those issues necessary to 
Science and 
technology. 
Courts, U.S. 
Law 
enforcement and 
102 STAT. 1362 
PUBLIC LAW 100-418—AUG. 23, 1988 
Records. 
Records. 
Defense and 
national 
security. 
50 u s e app. 
2419. 
determine liability for the civil penalty or other sanction involved. 
In an appeal filed under this paragraph, the court shall set aside 
any finding of fact for which the court finds there is not substantial 
evidence on the record and any conclusion of law which the court 
finds to be arbitrary, capricious, an abuse of discretion, or otherwise 
not in accordance with law.". 
(2) Section 13(d) of the Act (50 U.S.C. App. 2412(d)) is amended— 
(A) in the fifth sentence of paragraph (2) by inserting before 
the period ", except as provided in paragraph (3)"; and 
(B) by adding at the end of paragraph (2) the following: 
"All materials submitted to the administrative law judge and the 
Secretary shall constitute the administrative record for purposes of 
review by the courts. 
"(3) An order of the Secretary affirming, in whole or in part, the 
issuance of a temporary denial order may, within 15 days after the 
order is issued, be appealed by a person subject to the order to the 
United States Court of Appeals for the District of Columbia Circuit, 
which shall have jurisdiction of the appeal. The court may review 
only those issues necessary to determine whether the standard for 
issuing the temporary denial order has been met. The court shall 
vacate the Secretary's order if the court finds that the Secretary's 
order is arbitrary, capricious, an abuse of discretion, or otherwise 
not in accordance with law.". 
(b) ISSUANCE OF TEMPORARY DENIAL ORDERS.—Section 13(d)(1) of 
the Act (50 U.S.C. App. 2412(d)(1)) is amended in the second sentence 
by striking "60" each place it appears and inserting "180". 
SEC. 2429. RESPONSIBILITIES OF THE UNDER SECRETARY OF COMMERCE 
FOR EXPORT ADMINISTRATION. 
Section 15(a) of the Act (50 U.S.C. App. 2414(a)) is amended by 
inserting "and such other statutes that relate to national security" 
after "functions of the Secretary under this Act". 
SEC. 2430. AUTHORIZATION OF APPROPRIATIONS. 
Section 18(b) of the Act (50 U.S.C. App. 2417(b)) is amended— 
(1) in paragraph (1)— 
(A) by striking "each of the fiscal years 1987 and 1988" 
and inserting "the fiscal year 1988": 
(B) by striking "for each such year" each place it appears, 
and 
(C) by striking "and" after the semicolon; and 
(2) by striking paragraph (2) and inserting the following: 
"(2) $46,913,000 for the fiscal year 1989, of which $15,000,000 
shall be available only for enforcement, $5,000,000 shall be 
available only for foreign availability assessments under subsec-
tions (f) and (h)(6) of section 5, $4,000,000 shall be available only 
for regional export control assistance centers, and $22,913,000 
shall be available for all other activities under this Act; and 
"(3) such additional amounts for each of the fiscal years 1988 
and 1989 as may be necessary for increases in salary, pay, 
retirement, other employee benefits authorized by law, and 
other nondiscretionary costs.". 
SEC. 2431. TERMINATION DATE. 
Section 20 of the Act (50 U.S.C. 2419) is amended by striking 
"1989" and inserting "1990". 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1363 
SEC. 2432. MONITORING OF WOOD EXPORTS. 
50 USC app. 
The Secretary of Commerce shall, for a period of 2 years begin-
mng on the date of the enactment of this Act, monitor exports of 
processed and unprocessed wood to all countries of the Pacific Rim. 
The Secretary shall include the results of such monitoring in 
monthly reports setting forth, with respect to each item monitored, 
actual exports, the destination by country, and the domestic and 
worldwide price, supply, and demand. The Secretary shall transmit Reports. 
such reports to the Committee on Foreign Affairs of the House of 
Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate. 
SEC. 2433. STUDY ON NATIONAL SECURITY EXPORT CONTROLS. 
50 USC app. 
(a) ARRANGEMENTS FOR AND CONTENTS OF STUDY.— 
(1) ARRANGEMENTS FOR CONDUCTING STUDY.—The Secretary of 
Commerce and the Secretary of Defense, not later than 60 days 
after the date of the enactment of this Act, shall enter into 
appropriate arrangements with the National Academy of Sci-
ences and the National Academy of Engineering (hereafter in 
this section referred to as the "Academies") to conduct a com-
prehensive study of the adequacy of the current export adminis-
tration system in safeguarding United States national security 
while maintaining United States international competitiveness 
and Western technological preeminence. 
(2) REQUIREMENTS OF STUDY.—Recognizing the need to mini-
mize the disruption of United States trading interests while 
preventing Western technology from enhancing the develop-
ment of the military capabilities of controlled countries, the 
study shall— 
(A) identify those goods and technologies which are likely 
to make crucial differences in the military capabilities of 
controlled countries, and identify which of those goods and 
technologies controlled countries already possess or are 
available to controlled countries from other sources; 
(B) develop implementable criteria by which to define 
those goods and technolc^es; 
(C) demonstrate how such criteria would be applied to the 
control list by the relevant agencies to revise the list, 
eliminate ineffective controls, and strengthen controls; 
(D) develop proposals to improve United States and multi-
lateral assessments of foreign availability of goods and 
technolc^y subject to export controls; and 
(E) develop propc^als to improve the administration of 
the export control program, including procedures to ensure 
timely, predictable, and effective decision-making. 
(b) ADVISORY PANEL.—In conducting the study under subsection 
(a), the Academies shall appoint an Advisory Panel of not more than 
24 members who shall be selected from among individuals in private 
life who, by virtue of their experience and expertise, are knowledge-
able in relevant scientific, business, legal, or administrative matters. 
No individual may be selected as a member who, at the time of his 
or her appointment, is an elected or appointed official or employee 
in the executive, l^islative, or judicial branch of the (Jovemment 
In selecting members of the Advisory Panel, the Academies shall 
seek suggestions from the President, the Congress, and representa-
tives of industry and the academic community. 
102 STAT. 1364 
PUBLIC LAW 100-418—AUG. 23, 1988 
Classified 
information. 
Multilateral 
Export Control 
Enhancement 
Amendments 
Act. 
50 u s e app. 
2401 note. 
50 u s e app. 
2410a note. 
(c) EXECUTIVE BRANCH COOPERATION.—The Secretary of Com-
merce, the Secretary of Defense, the Secretary of State, the Director 
of the Central Intelligence Agency, and the head of any department 
or agency that exercises authority in export administration— 
(1) shall furnish to the Academies, upon request and under 
appropriate safeguards, classified or unclassified information 
which the Academies determine to be necessary for the pur-
poses of conducting the study required by this section; and 
(2) shall work with the Academies on such problems related to 
the study as the Academies consider necessary. 
(d) REPORT.—Under the direction of the Advisory Panel, the Acad-
emies shall prepare and submit to the President and the Congress, 
not later than 18 months after entering into the arrangements 
referred to in subsection (a), a report which contains a detailed 
statement of the findings and conclusions of the Academies pursu-
ant to the study conducted under subsection (a), together with their 
recommendations for such legislative or regulatory reforms £is they 
consider appropriate. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated $900,000 to carry out this section. 
PART II—MULTILATERAL EXPORT CONTROL 
ENHANCEMENT 
SEC. 2441. SHORT TITLE. 
This part may be cited as the "Multilateral Export Control 
Enhancement Amendments Act". 
SEC. 2442. FINDINGS. 
The Congress makes the following findings: 
(1) The diversion of advanced milling machinery to the Soviet 
Union by the Toshiba Machine Company and Kongsberg Trad-
ing Company has had a serious impact on United States and 
Western security interests. 
(2) United States and Western security is undermined without 
the cooperation of the governments and nationals of all coun-
tries participating in the group known as the Coordinating 
Committee (heresrfter in this part referred to as "COCOM") in 
enforcing the COCOM agreement. 
(3) It is the responsibility of all governments participating in 
COCOM to place in effect strong national security export con-
trol laws, to license strategic exports carefully, and to enforce 
those export control laws strictly, since the COCOM system is 
only as strong as the national laws and enforcement on which it 
is based. 
(4) It is also important for corporations to implement effective 
internal control systems to ensure compliance with export con-
trol laws. 
(5) In order to protect United States national security, the 
United States must take steps to ensure the compliance of 
foreign companies with COCOM controls, including, where nec-
essary conditions have been met, the imposition of sanctions 
against violators of controls commensurate with the severity of 
the violation. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1365 
SEC. 2443. MANDATORY SANCTIONS AGAINST TOSHIBA AND KONGSBERG. 
(a) SANCTIONS AGAINST TOSHIBA MACHINE COMPANY, KONGSBERG 
TRADING COMPANY, AND CERTAIN OTHER FOREIGN PERSONS,—(1) The 
President shall impose, for a period of 3 years— 
(1) a prohibition on contracting with, and procurement of 
products and services from— 
(A) Toshiba Machine Compginy and Kongsberg Trading 
Company, and 
(B) any other foreign person whom the President finds to 
have knowingly facilitated the diversion of advanced mill-
ing machinery 
by 
Toshiba 
Machine 
Company 
and 
Kongsberg Trading Company to the Soviet Union, 
by any department, agency, or instrumentality of the United 
States Government; and 
(2) a prohibition on the importation into the United States of 
all products produced by Toshiba Machine Company, Kongsberg 
Trading Company, and any foreign person described in para-
graph (IXB). 
Qo) SANCTIONS AGAINST TOSHIBA CORPORATION AND KONGSBERG 
VAAPENFABRIKK.—^The President shall impose, for a period of 3 
years, a prohibition on contracting with, and procurement of prod-
ucts and services from, the Toshiba Corporation and Kongsberg 
Vaapenfabrikk, by any department, agency, or instrumentality of 
the United States (Jovemment. 
(c) EJxcEPTiONS.—^The President shall not apply sanctions imder 
this section— 
(1) in the case of procurement of defense articles or defense 
services— 
(A) under existing contracts or subcontracts, including 
exercise of options for production quantities to satisfy 
United States operational military requirements; 
(B) if the President determines that the company or 
foreign person to whom the sanctions would otherwise be 
applied is a sole source supplier of essential defense articles 
or services and no alternative supplier can be identified; or 
(C) if the President determines that such articles or 
services are essential to the national security under defense 
coproduction agreements; or 
( 2 ) t o -
(A) products or services provided under contracts or other 
binding agreements (as such terms are defined by the Presi-
dent in r^ulations) entered into before June 30, 1987; 
(B) spare parts; 
(C) component parts, but not finished products, essential 
to United States products or production; 
(D) routine servicing and maintenance of products; or 
(E) information and technology. 
(d) DEFINITIONS.—For purposes of this section— 
(1) the term "component part" means any article which is not 
usable for its intended functions without being imbedded or 
int^rated into any other product and which, if used in produc-
tion of a finished product, would be substantially transformed 
in that process; 
(2) the term "finished product" means any article which is 
usable for its intended functions without being imbedded in or 
int^rated into any other product, but in no case shall such 
President of 
U.S. 
Contracts. 
50 u s e app. 
2401a note. 
Defense and 
national 
security. 
Science and 
technology. 
102 STAT. 1366 
PUBLIC LAW 100-418—AUG. 23, 1988 
term be deemed to include an article produced by a person other 
than a sanctioned person that contains parts or components of 
the sanctioned person if the parts or components have been 
substantially transformed during production of the finished 
product; and 
(3) the term "sanctioned person" means a company or other 
foreign person upon whom prohibitions have been imposed 
under subsection (a) or (b). 
SEC. 2444. MANDATORY SANCTIONS FOR FUTURE VIOLATIONS. 
The Act is amended by inserting after section 11 the following 
new section: 
50 u s e app. 
2410a. 
Defense and 
national 
security. 
Arms and 
munitions. 
Contracts. 
Defense and 
national 
security. 
Contracts. 
MULTILATERAL EXPORT CONTROL VIOLATIONS 
"SEC. 11 
A. (a) DETERMINATION BY THE PRESIDENT.—The President, 
subject to subsection (c), shall apply sanctions under subsection (b) 
for a period of not less than 2 years and not more than 5 years, if the 
President determines that— 
"(1) a foreign person has violated any regulation issued by a 
country to control exports for national security purposes pursu-
ant to the agreement of the group known as the Coordinating 
Committee, and 
"(2) such violation has resulted in substantial enhancement of 
Soviet and East bloc capabilities in submarine or antisubmarine 
warfare, ballistic or antiballistic missile technology, strategic 
aircraft, command, control, communications and intelligence, or 
other critical technologies as determined by the President, on 
the advice of the National Security Council, to represent a 
serious adverse impact on the strategic balance of forces. 
The President shall notify the Congress of each action taken under 
this section. This section, except subsections (h) and (j), applies only 
to violations that occur after the date of the enactment of the Export 
Enhancement Act of 1988. 
"(b) SANCTIONS.—The sanctions referred to in subsection (a) shall 
apply to the foreign person committing the violation, as well as to 
any parent, affiliate, subsidiary, and successor entity of the foreign 
person, and, except as provided in subsection (c), are as follows: 
"(1) a prohibition on contracting with, and procurement of 
products and services from, a sanctioned person, by any depart-
ment, agency, or instrumentality of the United States Govern-
ment, and 
"(2) a prohibition on importation into the United States of all 
products produced by a sanctioned person. 
"(c) EXCEPTIONS.—The President shall not apply sanctions under 
this section— 
"(1) in the case of procurement of defense articles or defense 
services— 
"(A) under existing contracts or subcontracts, including 
the exercise of options for production quantities to satisfy 
United States operational military requirements; 
"(B) if the President determines that the foreign person 
or other entity to which the sanctions would otherwise be 
applied is a sole source supplier of essential defense articles 
or services and no alternative supplier can be identified; or 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1367 
"(C) if the President determines that such articles or 
services are essential to the national security under defense 
coproduction agreements; or 
"(2)to— 
"(A) products or services provided under contracts or 
Contracts. 
other binding agreements (as such terms are defined by the 
President in r^ulations) entered into before the date on 
which the President notifies the (Dongress of the intention 
to impose the sanctions; 
"(B) spare parts; 
"(C) component parts, but not finished products, essential 
to United States products or production; 
"(D) routine servicing and maintenance of products; or 
"(E) information and technolc^y. 
Science and 
"(d) EXCLUSION.—The President shall not apply sanctions under 
technology. 
this section to a parent, affiliate, subsidiary, and successor entity of 
a foreign person if the President determines that— 
"(1) the parent, affiliate, subsidiary, or successor entity (as the 
case may be) has not knowingly violated the export control 
r^ulation violated by the foreign person, and 
"(2) the government of the country with jurisdiction over the 
parent, af^iate, subsidiary, or successor entity had in effect, at 
the time of the violation by the foreign person, an effective 
export control system consistent with principles agreed to in the 
Coordinating Committee, including the following: 
"(A) national laws providing appropriate civil and crimi-
nal penalties and statutes of limitations sufficient to deter 
potential violations; 
"(B) a prc^ram to evaluate export license applications 
that includes sufficient technical expertise to assess the 
licensing status of exports and ensure the reliability of 
end-users; 
"(C) an enforcement mechanism that provides authority 
for trained enforcement officers to investigate and prevent 
Ul^al exports; 
crime. 
"(D) a system of export control documentation to verify 
Records. 
the movement of goods and technolc^y; and 
"(E) procedures for the coordination and exchange of 
information concerning violations of the agreement of the 
Coordinating Committee. 
"(e) DEFINITIONS.—For purposes of this section— 
"(1) the term 'component part' means any article which is not 
usable for its intended functions without being imbedded in or 
int^rated into any other product and which, if used in produc-
tion of a finished product, would be substantially transformed 
in that process; 
"(2) the term 'finished product' means any article which is 
usable for its intended functions without being imbedded or 
int^rated into any other product, but in no case shall such 
term be deemed to include an article produced by a person other 
than a sanctioned person that contains parts or components of 
the sanctioned person if the parts or components have been 
substantially transformed during production of the finished 
product; and 
"(3) the term 'sanctioned person' means a foreign person, and 
any parent, affiliate, subsidiary, or successor entity of the for-
Law 
enforcement and 
crime. 
Law 
enforcement and 
102 STAT. 1368 
PUBLIC LAW 100-418—AUG. 23, 1988 
President of U.S. 
Defense and 
national 
security. 
President of U.S. 
Research and 
development. 
Contracts. 
Reports. 
eign person, upon whom sanctions have been imposed under 
this section. 
"(f) SUBSEQUENT MODIFICATIONS OF SANCTIONS.—The President 
may, after consultation with the Congress, limit the scope of sanc-
tions applied to a parent, affiliate, subsidiary, or successor entity of 
the foreign person determined to have committed the violation on 
account of which the sanctions were imposed if the President deter-
mines that— 
"(1) the parent, affiliate, subsidiary, or successor entity (as the 
case may be) has not, on the basis of available evidence, itself 
violated the export control regulation involved, either directly 
or through a course of conduct; 
"(2) the government with jurisdiction over the parent, affili-
ate, subsidiary, or successor entity has improved its export 
control system as measured by the criteria set forth in subsec-
tion (dX2); 
"(3) the parent, affiliate, subsidiary, or successor entity, has 
instituted improvements in internal controls sufficient to detect 
and prevent violations of the export control regime imple-
mented under paragraph (2); and 
"(4) the impact of the sanctions imposed on the parent, affili-
ate, subsidiary, or successor entity is proportionate to the 
increased defense expenditures imposed on the United States. 
Notwithstanding the preceding sentence, the President may not 
limit the scope of the sanction referred to in subsection (bXD with 
respect to the parent of the foreign person determined to have 
committed the violation, until that sanction has been in effect for at 
least 2 years. 
"(g) REPORTS TO CONGRESS.—The President siiall include in the 
annual report submitted under section 14, a report on the status of 
any sanctions imposed under this section, including any exceptions, 
exclusions, or modifications of sanctions that have been applied 
under subsection (c), (d), or (f). 
"(h) DISCRETIONARY IMPOSITION OF SANCTIONS.—If the President 
determines that a foreign person has violated a regulation issued by 
a country to control exports for national security purposes pursuant 
to the agreement of the group known as the Coordinating Commit-
tee, but in a case in which subsection (aX2) may not apply, the 
President may apply the sanctions referred to in subsection (b) 
against that foreign person for a period of not more than 5 years. 
"(i) COMPENSATION FOR DIVERSION OF MILITARILY CRITICAL TECH-
NOLOGIES TO CONTROLLED COUNTRIES.—KD In cases in which sanc-
tions have been applied against a foreign person under subsection 
(a), the President shall initiate discussions with the foreign person 
and the government with jurisdiction over that foreign person 
regarding compensation on the part of the foreign person in an 
amount proportionate to the costs of research and development and 
procurement of new defensive systems by the United States and the 
allies of the United States to counteract the effect of the techno-
logical advance achieved by the Soviet Union as a result of the 
violation by that foreign person. 
"(2) The President shall, at the time that discussions are initiated 
under paragraph (1), report to the Congress that such discussions 
are being undertaken, and shall report to the Congress the outcome 
of those discussions. 
"(j) OTHER ACTIONS BY THE PRESIDENT.—Upon making a deter-
mination under subsection (a) or (h), the President shall— 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1369 
Defense and 
national 
security. 
Courts, U.S. 
"(1) initiate consultations with the foreign government with 
jurisdiction over the foreign person who committed the viola-
tion involved, in order to seek prompt remedial action by that 
government; 
"(2) initiate discussions with the governments participating in 
the Coordinating Committee regarding the violation and means 
to ensure that similar violations do not occur; and 
"(3) consult with and report to the Congress on the nature of Reports 
the violation and the actions the President proposes to take, or 
has taken, to rectify the situation, 
"(k) DAMAGES FOR CERTAIN VIOLATIONS.—(1) In any case in which 
the President msikes a determination under subsection (a), the 
Secretary of Defense shall determine the costs of restoring the 
military preparedness of the United States on account of the viola-
tion involved. The Secretary of Defense shall notify the Attorney 
General of his determination, and the Attorney General may bring 
an action for damages, in any appropriate district court of the 
United States, to recover such costs against the person who com-
mitted the violation, any person that is owned or controlled by the 
person who committed the violation, and any person who owns and 
controls the person who committed the violation. 
"(3) The total amount awarded in any case brought under para-
graph (2) shall be determined by the court in light of the facts and 
circumstances, but shall not exceed the amount of the net loss to the 
national security of the United States. An action under this subsec-
tion shall be commenced not later than 3 years after the violation 
occurs, or one year after the violation is discovered, whichever is 
later. 
"fl) DEFINITION.—For purposes of this section, the term 'foreign 
person' means any person other than a United States person.". 
SEC. 
2
4
4
5
. 
ANNUAL 
REPORT 
OF 
DEFENSE 
IMPACT. 
Section 14 of the Act (50 U.S.C. App. 2413) is amended by adding 
at the end the following new subsection: 
"(f) ANNUAL REPORT OF THE PRESIDENT.—The President shall 
submit an annual report to the Congress estimating the additional 
defense expenditures of the United States arising from illegal tech-
nolt^y transfers, focusing on estimated defense costs arising from 
ill^al technolc^ transfers that resulted in a serious adverse impact 
on the strategic balance of forces. These estimates shall be based on 
assessment by the intelligence community of any technology trans-
fers that resulted in such serious adverse impact. This report may 
have a classified annex covering any information of a sensitive 
nature.". 
SEC. 2446. IMPROVED MULTILATERAL COOPERATION. 
Section 5(i) of the Act (50 U.S.C. App. 2404) (relating to multilat-
eral export controls), as amended by section 2421 of this Act, is 
further amended by striking paragraphs (1) through (9) and insert-
ing the following: 
"(1) Enhanced public understanding of the Committee's pur-
pose and procedures, including publication of the list of items 
controlled for export by agreement of the CJommittee, t<^ether 
with all notes, understandings, and other aspects of such agree-
ment of the Committee, and all changes thereto. 
Classified 
information. 
102 STAT. 1370 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(2) Periodic meetings of high-level representatives of partici-
pating governments for the purpose of coordinating export con-
trol policies and issuing policy guidance to the Committee. 
"(3) Strengthened legal basis for each government's export 
control system, including, as appropriate, increased penalties 
and statutes of limitations. 
"(4) Harmonization of export control documentation by the 
participating governments to verify the movement of goods and 
technology subject to controls by the Committee. 
"(5) Improved procedures for coordination and exchange of 
information concerning violations of the agreement of the 
Committee. 
"(6) Procedures for effective implementation of the agreement 
through uniform and consistent interpretations of export 
controls agreed to by the governments participating in the 
Committee. 
"(7) Coordination of national licensing and enforcement ef-
forts by governments participating in the Committee, including 
sufficient technical expertise to assess the licensing status of 
exports and to ensure end-use verification. 
"(8) More effective procedures for enforcing export controls, 
including adequate training, resources, and authority for 
enforcement officers to investigate and prevent illegal exports. 
"(9) Agreement to provide adequate resources to enhance the 
functioning of individual national export control systems and of 
the Committee. 
"(10) Improved enforcement and compliance with the agree-
ment through elimination of unnecessary export controls and 
maintenance of an effective control list. 
"(11) Agreement to enhance cooperation among members of 
the Committee in obtaining the agreement of governments 
outside the Committee to restrict the export of goods and tech-
nology on the International Control List, to establish an ongoing 
mechanism in the Committee to coordinate planning and im-
plementation of export control measures related to such agree-
ments, and to remove items from the International Control List 
if such items continue to be available to controlled countries or 
if the control of the items no longer serves the common strategic 
objectives of the members of the Committee.". 
SEC. 2447. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) TRADE EXPANSION ACT OF 1962.—Section 233 of the Trade 
Expansion Act of 1962 (19 U.S.C 1864) is amended— 
(1) by striking out "(a)"; and 
(2) by striking out subsection (b). 
(b) DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 1988.—Sections 
8124 and 8129 of the Department of Defense Appropriations Act, 
101 Stat. 1329-85, 1988 (as contained in section 101(d) of Public Law 100-202) are 
1329-86. 
repealed. 
Subtitle E—Miscellaneous Provisions 
SEC. 2501. TRADING WITH THE ENEMY ACT. 
(a) TERMINATION OF OFFICE OF AUEN PROPERTY.—(1) The Trading 
with the Enemy Act is amended by striking subsections (b) through 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1371 
(e) of section 39 (50 U.S.C. App. 39) and inserting the following new 
subsection: 
"(b) The Attorney General shall cover into the Treasury, to the 
credit of miscellaneous receipts, all sums from property vested in or 
transferred to the Attorney General under this Act— 
"(1) which the Attorney General receives after the date of the 
enactment of the Export Enhancement Act of 1988, or 
"(2) which the Attorney General received before that date and 
which, as of that date, the Attorney General had not covered 
into the Treasury for deposit in the War Claims Fund, other 
than any such sums which the Attorney General determines in 
his or her discretion are the subject matter of any judicial 
action or proceeding.". 
(2) Subsection (f) of such section is amended— 
(A) by striking "(f)" and inserting "(c)"; and 
(B) by striking "through (d)" and inserting "and (b)". 
(b) REMOVAL OF REPORTING REQUIREMENT.—Section 6 of such Act 
(50 U.S.C. App. 6) is amended in the next to the last sentence by 
striking ": Provided further," and all that follows through the end of 
the section and inserting a period. 
SEC. 2502. LIMITATION ON EXERCISE OF EMERGENCY AUTHORITIES. 
(a) TRADING WITH THE ENEMY ACT.—(1) Section 5(b) of the Trading 
With the Enemy Act (50 U.S.C. App. 5flt))) is amended by adding at 
the end the following new paragraph: 
"(4) The authority granted to the President in this subsection does 
not include the authority to regulate or prohibit, directly or in-
directly, the importation from any country, or the exportation to 
any country, whether commercial or otherwise, of publications, 
films, posters, phonograph records, photographs, microfilms, micro-
fiche, tapes, or other informational materials, which are not 
otherwise controlled for export under section 5 of the Export 
Administration Act of 1979 or with respect to which no acts are 
prohibited by chapter 37 of title 18, United States Code.". 
(2) The authorities conferred upon the President by section 5(b) of 50 use app. 5 
the Trading With the Enemy Act, which were being exercised with 
note. 
respect to a country on July 1, 1977, as a result of a national 
emergency declared by the President before such date, and are being 
exercised on the date of the enactment of this Act, do not include 
the authority to r^ulate or prohibit, directly or indirectly, any 
activity which, under section 5(bX4) of the Trading With the Enemy 
Act, as added by paragraph (1) of this subsection, may not bie 
r^ulated or prohibited. 
(b) INTERNATIONAL EMERGENCY ECONOMIC POWERS ACT.—(1) Sec-
tion 203(b) of the International Emergency Economic Powers Act (50 
U.S.C. 1702(b)) is amended— 
(A) in paragraph (1) by striking "or" after the semicolon; 
(B) in paragraph (2) by striking the period and inserting 
"; or"; and 
(C) by adding at the end the following: 
"(3) the importation from any country, or the exportation to 
any country, whether commercial or otherwise, of publications, 
films, posters, phonograph records, photographs, microfilms, 
microfiche, tapes, or other informational materials, which are 
not otherwise controlled for export under section 5 of the Export 
Administration Act of 1979 or with respect to which no acts are 
prohibited by chapter 37 of title 18, United States Ckxle.". 
102 STAT. 1372 
PUBLIC LAW 100-418—AUG. 23, 1988 
50 u s e app. 1702 
note. 
Exchange Rates 
and 
International 
Economic Policy 
Coordination Act 
of 1988. 
22 u s e 5301. 
22 u s e 5302. 
(2) The amendments made by paragraph (1) apply to actions taken 
by the President under section 203 of the International Emergency 
Economic Powers Act before the date of the enactment of this Act 
which are in effect on such date of enactment, and to actions taken 
under such section on or after such date of enactment. 
SEC. 2503. BUDGET ACT. 
Any new spending authority (within the meaning of section 401 of 
the Congressional Budget Act of 1974) which is provided under this 
title shall be effective for any fiscal year only to the extent or in 
such amounts as are provided in appropriation Acts. 
TITLE III—INTERNATIONAL FINANCIAL 
POLICY 
Subtitle A—Exchange Rates and International 
Economic Policy Coordination 
SEC. 3001. SHORT TITLE. 
This subtitle may be cited as the "Exchange Rates and Inter-
national Economic Policy Coordination Act of 1988". 
SEC. 3002. FINDINGS. 
The Congress finds that— 
(1) the macroeconomic policies, including the exchange rate 
policies, of the leading industrialized nations require improved 
coordination and are not consistent with long-term economic 
growth and financial stability; 
(2) currency values have a major role in determining the 
patterns of production and trade in the world economy; 
(3) the rise in the value of the dollar in the early 1980's 
contributed substantially to our current trade deficit; 
(4) exchange rates among major trading nations have become 
increasingly volatile and a pattern of exchange rates has at 
times developed which contribute to substantial and persistent 
imbalances in the flow of goods and services between nations, 
imposing serious strains on the world trading system and frus-
trating both business and government planning; 
(5) capital flows between nations have become very large 
compared to trade flows, respond at times quickly and dramati-
cally to policy and economic changes, and, for these reasons, 
contribute significantly to uncertainty in financial markets, the 
volatility of exchange rates, and the development of exchange 
rates which produce imbalances in the flow of goods and serv-
ices between nations; 
(6) policy initiatives by some major trading nations that 
manipulate the value of their currencies in relation to the 
United States dollar to gain competitive advantage continue 
to create serious competitive problems for United States 
industries; 
(7) a more stable exchange rate for the dollar at a level 
consistent with a more appropriate and sustainable balance in 
the United States current account should be a major focus of 
national economic policy; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1373 
(8) procedures for improving the coordination of macro-
economic policy need to be strengthened considerably; and 
(9) under appropriate circumstances, intervention by the 
United States in foreign exchange markets as part of a coordi-
nated international strategic intervention effort could produce 
more orderly adjustment of foreign exchange markets and, in 
combination with necessary macroeconomic policy changes, 
assist adjustment toward a more appropriate and sustainable 
balance in current accounts. 
SEC. 3003. STATEMENT OF POLICY. 
22 USC 5303. 
It is the policy of the United States that— 
(1) the United States and the other major industrialized 
countries should take steps to continue the process of coordinat-
ing monetary, fiscal, and structural policies initiated in the 
Plaza Agreement of September 1985; 
(2) the goal of the United States in international economic 
negotiations should be to achieve macroeconomic policies and 
exchange rates consistent with more appropriate and sustain-
able balances in trade and capital flows and to foster price 
stability in conjunction with economic growth; 
(3) the United States, in close coordination with the other 
major industrialized countries should, where appropriate, 
participate in international currency markets with the objective 
of producing more orderly adjustment of foreign exchange mar-
kets and, in combination with necessary macroeconomic policy 
changes, assisting adjustment toward a more appropriate and 
sustainable balance in current accounts; and 
(4) the accountability of the President for the impact of 
economic policies and exchange rates on trade competitiveness 
should be increased. 
SEC. 3004. INTERNATIONAL NEGOTIATIONS ON EXCHANGE RATE AND 
22 USC 5304. 
ECONOMIC POLICIES. 
(a) MULTILATERAL NEGOTIATIONS.—The President shall seek to 
President of U.S. 
confer and negotiate with other countries— 
(1) to achieve— 
(A) better coordination of macroeconomic policies of the 
major industrialized nations; and 
(B) more appropriate and sustainable levels of trade and 
current account balances, and exchange rates of the dollar 
and other currencies consistent with such balances; and 
(2) to develop a program for improving existing mechanisms 
for coordination and improving the functioning of the exchange 
rate system to provide for long-term exchange rate stability 
consistent with more appropriate and sustainable current ac-
count balances. 
(b) BILATERAL NEGOTIATIONS.—The Secretary of the Treasury shall 
analyze on an annual basis the exchange rate policies of foreign 
countries, in consultation with the International Monetary Fund, 
and consider whether countries manipulate the rate of exchange 
between their currency and the United States dollar for purposes of 
preventing effective balance of payments adjustments or gaining 
unfair competitive advantage in international trade. If the Sec-
retary considers that such manipulation is occurring with respect to 
countries that (1) have material global current account surpluses; 
and (2) have significant bilateral trade surpluses with the United 
102 STAT. 1374 
PUBLIC LAW 100-418—AUG. 23, 1988 
States, the Secretary of the Treasury shall take action to initiate 
negotiations with such foreign countries on an expedited basis, in 
the International Monetary Fund or bilaterally, for the purpose of 
ensuring that such countries regularly and promptly adjust the rate 
of exchange between their currencies and the United States dollar 
to permit effective balance of pajmients adjustments and to elimi-
nate the unfair advantage. The Secretary shall not be required to 
initiate negotiations in cases where such negotiations would have a 
serious detrimental impact on vital national economic and security 
interests; in such cases, the Secretary shall inform the chairman 
and the ranking minority member of the Committee on Banking, 
Housing, and Urban Affairs of the Senate and of the Committee on 
Banking, Finance and Urban Affairs of the House of Representa-
tives of his determination. 
22 use 5305. 
SEC. 3005. REPORTING REQUIREMENTS. 
(a) REPORTS REQUIRED.—In furtherance of the purpose of this title, 
the Secretary, after consultation with the Chairman of the Board, 
shall submit to the Committee on Banking, Finance and Urban 
Aifairs of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate, on or before 
October 15 of each year, a written report on international economic 
policy, including exchange rate policy. The Secretary shall provide a 
written update of developments six months after the initial report. 
In addition, the Secretary shall appear, if requested, before both 
committees to provide testimony on these reports. 
(b) CONTENTS OF REPORT.—Each report submitted under subsec-
tion (a) shall contain— 
(1) an analysis of currency market developments and the 
relationship between the United States doUar and the cur-
rencies of our major trade competitors; 
(2) an evaluation of the factors in the United States and other 
economies that underlie conditions in the currency markets, 
including developments in bilateral trade and capital flows; 
(3) a description of currency intervention or other actions 
undertaken to adjust the actual exchange rate of the dollar; 
(4) an assessment of the impact of the exchange rate of the 
United States dollar on— 
(A) the ability of the United States to maintain a more 
appropriate and sustainable balance in its current account 
and merchandise trade account; 
(B) production, employment, and noninflationary growth 
in the United States; 
(C) the international competitive performance of United 
States industries and the external indebtedness of the 
United States; 
(5) recommendations for any changes necessary in United 
States economic policy to attain a more appropriate and sustain-
able balance in the current account; 
(6) the results of negotiations conducted pursuant to section 
3004; 
(7) key issues in United States policies £u-ising from the most 
recent consultation requested by the International Monetary 
Fund under article IV of the Fund's Articles of Agreement; and 
(8) a report on the size and composition of international 
capital flows, and the factors contributing to such flows, includ-
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1375 
ing, where possible, an assessment of the impact of such flows 
on exchange rates and trade flows. 
(c) REPORT BY BOARD OF GOVERNORS.—Section 2A(1) of the Federal 
Reserve Act (12 U.S.C. 225a(l)) is amended by inserting after "the 
Nation" the following: ", including an analysis of the impact of the 
exchange rate of the dollar on those trends". 
SEC. 3006. DEFINITIONS. 
As used in this subtitle: 
(1) SECRETARY.—The term "Secretary" means the Secretary of 
the Treasury. 
(2) BOARD.—The term "Board" means the Board of Governors 
of the Federal Reserve System. 
Subtitle B—International Debt 
PART I—FINDINGS, PURPOSES, AND STATEMENT 
OF POLICY 
SEC. 3101. SHORT TITLE. 
This subtitle may be cited as the "International Debt Mginage-
ment Act of 1988". 
SEC. 3102. FINDINGS. 
The Congress finds that— 
(1) the international debt problem threatens the safety and 
soundness of the international financial system, the stability of 
the international trading system, and the economic develop-
ment of the debtor countries; 
(2) orderly reduction of international trade imbalances re-
quires very substantial growth in all parts of the world econ-
omy, particularly in the developing countries; 
(3) growth in developing countries with substantial external 
deists has been significantly constrained over the last several 
years by a combination of high debt service obligations and 
insufficient new flows of financial resources to these countries; 
(4) substantial interest payment outflows from debtor coun-
tries, combined with inadequate net new capital inflows, have 
produced a significant net transfer of financial resources from 
debtor to creditor countries; 
(5) negative resource transfers at present levels severely de-
press both investment and growth in the debtor countries, and 
force debtor countries to reduce imports and expand exports in 
order to meet their debt service obligations; 
(6) current adjustment policies in debtor countries, which 
depress domestic demand and increase production for export, 
help to depress world commodity prices and limit the growth of 
export markets for United States industries; 
(7) the United States has borne a disproportionate share of 
the burden of absorbing increased exports from debtor coun-
tries, while other industrialized countries have increased their 
imports from developing countries only slightly; 
(8) current approaches to the debt problem should not rely 
solely on new lending as a solution to the debt problem, and 
should focus on other financing alternatives including a reduc-
tion in current debt service obligations; 
22 u s e 5306. 
International 
Debt 
Management 
Act of 1988. 
Developing 
countries. 
Banks and 
banking. 
22 u s e 5321. 
22 u s e 5322. 
102 STAT. 1376 
PUBLIC LAW 100-418—AUG. 23, 1988 
(9) new international mechanisms to improve the manage-
ment of the debt problem and to expand the range of financing 
options available to developing countries should be explored; 
and 
(10) industrial countries with strong current account sur-
pluses have a disproportionate share of the world's capital 
resources, and bear an additional responsibility for contributing 
to a viable long-term solution to the debt problem. 
22 use 5323. 
SEC. 3103. PURPOSES. 
The purposes of this subtitle are— 
(1) to expand the world trading system and raise the level of 
exports from the United States to the developing countries in 
order to reduce the United States trade deficit and foster eco-
nomic expansion and an increase in the standard of living 
throughout the world; 
(2) to alleviate the current international debt problem in 
order to make the debt situation of developing countries more 
manageable and permit the resumption of sustained growth in 
those countries; and 
(3) to increase the stability of the world financial system and 
ensure the safety and soundness of United States depository 
institutions. 
22 use 5324. 
SEC 3104. STATEMENT OF POLICY. 
It is the policy of the United States that— 
(1) increasing growth in the developing world is a major goal 
of international economic policy; 
(2) it is necessary to broaden the range of options in dealing 
with the debt problem to include improved mechanisms to 
restructure existing debt; 
(3) active consideration of a new multilateral authority to 
improve the management of the debt problem and to share the 
burdens of adjustment more equitably must be undertaken; and 
(4) countries with strong current account surpluses bear a 
major responsibility for providing the financial resources 
needed for growth in the developing world. 
PART II—THE INTERNATIONAL DEBT 
MANAGEMENT AUTHORITY 
22 use 5331. 
SEC. 3111. INTERNATIONAL INmATIVE. 
(a) DiREcnvE.— 
(1) STUDY.—^The Secretary of the Treasury shall study the 
feasibility and advisability of establishing the International 
Debt Management Authority described in this section. 
(2) EIxPLANATiON O
P DETERMINATIONS.—If the Secretary of the 
Treasury determines that initiation of international discussions 
with r^ard to such authority would (A) result in material 
increase in the discount at which sovereign debt is sold, (B) 
materially increase the probability of default on such debt, or 
(C) matenally enhance the likelihood of debt service failure or 
disruption, the Secretary shall include in his interim reports to 
the Congress an explanation in detail of the reasons for such 
determination. 
/ 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1377 
(3) INITIATION OF DISCUSSIONS.—Unless such a determination 
is made, the Secretary of the Treasury shall initiate discussions 
with such industrialized and developing countries as the Sec-
retary may determine to be appropriate with the intent to 
negotiate the establishment of the International Debt Manage-
ment Authority, which would undertake to— 
(A) purchase sovereign debt of less developed countries 
from private creditors at an appropriate discount; 
(B) enter into negotiations with the debtor countries for 
the purpose of restructuring the debt in order to— 
(i) ease the current debt service burden on the debtor 
countries; and 
(ii) provide additional opportunities for economic 
growth in both debtor and industrialized countries; and 
(C) assist the creditor banks in the voluntary disposition 
of their Third World loan portfolio. 
(b) OBJECTIVES.—In any discussions initiated under subsection (a), 
the Secretary should include the following specific proposals: 
(1) That any loan restructuring assistance provided by such Loans. 
an authority to any debtor nation should involve substantial 
commitments by the debtor to (A) economic policies designed to 
improve resource utilization and minimize capital flight, and (B) 
preparation of an economic management plan calculated to 
provide sustained economic growth and to allow the debtor to 
meet its restructured debt obligations. 
(2) That support for such an authority should come from 
industrialized countries, and that greater support should be 
expected from countries with strong current account surpluses. 
(3) That such an authority should have a clearly defined close 
working relationship with the International Monetary Fund 
and the International Bank for Reconstruction and Develop-
ment and the various regional development banks. 
(4) That such an authority should be designed to operate as a 
self-supporting entity, requiring no routine appropriation of 
resources from any member government, and to function sub-
ject to the prohibitions contained in the first sentence of section 
3112(a). 
(5) That such an authority should have a defined termination 
date and a clear proposal for the restoration of creditworthiness 
to debtor countries within this timeframe. 
(c) INTERIM REPORTS.—At the end of the 6-month period beginning 
on the date of enactment of this Act and at the end of the 12-month 
period beginning on such date of enactment, the Secretary of the 
Treasury shall submit a report on the progress being made on the 
study or in discussions described in subsection (a) to the Committee 
on Banking, Finance and Urban Affairs of the House of Representa-
tives and the Committee on Banking, Housing, and Urban Affairs 
and the Committee on Foreign Relations of the Senate, and shall 
consult with such committees after submitting each such report. 
(d) FINAL REPORT.—On the conclusion of the study or of discus-
sions described in subsection (a), the Secretary shall transmit a 
report containing a detailed description thereof to the Committee on 
Banking, Finance £md Urban Affairs of the House of Representa-
tives and the Committee on Banking, Housing, and Urban Affairs 
and the Committee on Foreign Relations of the Senate, together 
with such recommendations for legislation which the Secretary may 
102 STAT. 1378 
PUBLIC LAW 100-418—AUG. 23, 1988 
determine to be necessary or appropriate for the establishment of 
the International Debt Management Authority. 
22 use 5332. 
SEC. 3112. ACTIONS TO FACILITATE CREATION OF THE AUTHORITY. 
(a) IN GENERAL.—No funds, appropriations, contributions, callable 
capital, financial guarantee, or any other financial support or 
obl^ation or contingent support or obligation on the part of the 
United States Government may be used for the creation, operation, 
or support of the International Debt Management Authority speci-
fied in section 3111, without the express approvEd of the Congress 
through subsequent law, nor shall any expenses associated with 
such authority, either directly or indirectly, accrue to any United 
States person without the consent of such person. Except as re-
stricted in the preceding sentence, the Secretary of the Treasury 
shall review all potential resources available to the multilateral 
financial institutions which could be used to support the creation of 
the International Debt Management Authority. In the course of this 
review, the Secretary shall direct— 
(1) the United States Executive Director of the International 
Monetary Fund to determine the amount of, and alternative 
methods by which, gold stock of the Fund which, subject to 
action by its Board of Governors, could be pledged as collateral 
to obtain financing for the activities of the authority specified in 
section 3111; and 
(2) the United States Elxecutive Director to the International 
Bank for Reconstruction and Development to determine the 
amount of, and alternative methods by which, liquid assets 
controlled by such Bank and not currently committed to any 
loan p n ^ a m which, subject to action by its Board of Governors, 
could be pledged as collateral for obtaining financing for the 
activities of the authority specified in section 3111. 
Reports. 
The Secretary of the Treasury shall include a report on the results 
of the review in the first report submitted under section 3111(c). 
Ot)) CONSTRUCTION OF SECTION.—Subsection (a) shall not be con-
strued to affect any provision of the Articles of Agreement of the 
International Monetary Fund or of the International Bank for 
Reconstruction and Development or any agreement entered into 
under either of such Agreements. 
22 use 5333. 
SEC. 3113. IMF-WORLD BANK REVIEW. 
(a) IMF REVIEW.—The United States Executive Director of the 
International Monetary Fund shall request the management of the 
International Monetaiy Fund to prepare a review and analysis of 
the debt burden of the developing countries, with particular atten-
tion to alternatives for dealing with the debt problem including new 
lending instruments, rescheduling and refinancing of existing debt, 
securitization and debt conversion techniques, discounted debt 
repurchases, and the International Debt Management Authority 
described in section 3111 no later than 1 year after the date of the 
enactment of this Act. 
(b) WORLD BANK REVIEW.—^The United States Executive Director 
to the International Bank for Reconstruction and Development shall 
request the management of the International Bank for Reconstruc-
tion and Development to prepare a review and analysis of the debt 
burden of the developing countries, with particular attention to 
alternatives for dealing with the debt problem including new lend-
ing instruments, rescheduling and refinancing of existing debt, 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1379 
securitization and debt conversion techniques, discounted debt 
repurchases, and the International Debt Management Authority 
described in section 3111 no later than 1 year after the date of the 
enactment of this Act. 
PART III—REGULATORY PROVISIONS 
AFFECTING INTERNATIONAL DEBT 
SEC. 3121. PROVISIONS RELATING TO THE REGULATION OF DEPOSITORY 
INSTITUTIONS. 
(a) REGULATORY OBJECTIVES.—It is the sense of the Congress that 
regulations prescribed by Federal banking regulatory agencies 
which affect the international assets of United States commercial 
banks should grant the widest possible latitude to the banks for 
negotiating principal and interest reductions with respect to obliga-
tions of heavily indebted sovereign borrowers. 
(b) FLEXIBIUTY IN DEBT RESTRUCTURING.—It is the intent of the Loans. 
Congress that, in applying generally accepted accounting standards. 
Federal agencies which regulate and oversee the operations of 
depository institutions (within the meaning given to such term by 
clauses (i) through (vi) of section 19(bXlXA) of the Federal Reserve 
Act) apply to such institutions maximum flexibility in determining 
the asset value of restructured loans to heavily indebted sovereign 
borrowers and in accounting for the effects of such restructuring 
prospectively. 
(c) RECAPITALIZATION.—It is the intent of the Congress that Fed-
eral agencies which regulate and oversee the operations of deposi-
tory institutions (within the meaning given to such term by clauses 
(i) through (vi) of section 19(bXlXA) of the Federal Reserve Act) 
should require depository institutions with substantial amounts of 
loans to heavily indebted sovereign borrowers to seek, as appro-
priate, expsuided recapitalization through equity financing to ensure 
that prudent institutioned capital-to-total asset ratios are estab-
lished and maintained. 
(d) RESERVES FOR LOAN LOSSES.—It is the intent of the Congress 
that Federal agencies which regulate and oversee the operations of 
depository institutions (within the meaning given to such term by 
clauses (i) through (vi) of section 19(bXlXA) of the Federal Reserve 
Act) should seek to ensure that appropriate levels of reserves be 
established by depository institutions engaged in substantial lending 
to heavily indebted sovereign borrowers in accordance with both the 
credit and country risks associated with such lending. 
(e) DATA ON BANKS FOREIGN LOAN RISKS.—Section 913 of the 
International Lending Supervision Act of 1983 is amended by adding 12 use 3912. 
at the end thereof the following new subsection: 
"(d) To ensure that Congress is fully informed of the risks to our Reports. 
banking system posed by troubled foreign loans, the Federal bank-
ing agencies, before March 31, 1989, and on April 30 of each 
succeeding year, shall jointly submit to the Committee on Banking, 
Housing, and Urbem Affairs of the Senate and Committee on Bank-
ing, Finance and Urban Affairs of the House of Representatives a 
report that shall include the following: 
"(1) The level of loan exposure of those banking institutions 
under the iurisdiction of each agency which is rated 'value-
impaired', substandard', 'other transfer risk problems', or in 
any other troubled debt category as may be established by the 
102 STAT. 1380 
PUBLIC LAW 100-418—AUG. 23, 1988 
banking agencies. This tabulation shall clearly identify aggre-
gate loan exposures of the 9 largest United States banks under 
the agencies jurisdiction, the aggregate loan exposures of the 
next 13 largest banks, and the aggregate exposure of all other 
such banks which have significant country risk exposures. This 
tabulation shaU include a separate section identifying, to the 
extent feasible, new bank loans to countries with debt service 
problems which were made within the past year preceding the 
date on which the report required under this subsection is due, 
and shall include the amount of sovereign loans written off or 
sold by such banks during the preceding year. 
"(2) Progress that has been achieved by the appropriate Fed-
eral banking agencies and by banking institutions in reducing 
the risk to the economy of the United States posed by the 
exposure of banking institutions to troubled international loans 
through appropriate voluntary or regulatory policies, including 
increases in capital and reserves of banking institutions. 
"(3) The relationship between lending activity by the United 
Stat^ banks and foreign banks in countries experiencing debt 
service difficulties and exports from the United States and other 
lending countries to these markets, and the extent to which 
United States banking institutions can be encouraged to con-
tinue to make credit available to finance necessary growth in 
international trade, and particularly to finance United States 
exports. 
"(4) The response of regulatory agencies in other countries to 
the international debt problems, including measures which 
encourage the building of capitail and reserves by foreign bank-
ing institutions, tax treatment of reserves, encouragement of 
new lending to promote international trade, and measures 
which may place United States banking institutions at a 
competitive disadvantage when compared with foreign banking 
institutions. 
"(5) Steps that have been taken during the previous year by 
countries experiencing debt service difficulties to enhance 
conditions for private direct investment (including investment 
by United States persons) and to eliminate production subsidies, 
attain price stabiUty, and undertake such other steps as will 
remove the causes of their debt service difficulties. 
Classified 
Each appropriate Federal banking agency may provide data in the 
information. 
aggr^ate to the extent necessary to preserve the int^rity and 
confidentiality of the r^ulatory and examination process.". 
SEC. 3122. STUDIES RELATING TO THE REGULATION OF DEPOSITORY 
INSTITUTIONS. 
(a) REGULATORY STUDY REQUIRED.—The Comptroller of the Cur-
rency, the Board of Governors of the Federal Reserve System, and 
the Federal Deposit Insurance Corporation shall conduct a study to 
determine the extent of any regulatory obstacle to negotiated reduc-
tions in the debt service obligations associated with foreign debt. 
Loans. 
flt)) 
SpEcaOTC FACTORS To BE STUDIED.—The study required by 
subsection (a) shall include an analysis of regulatory and accounting 
obstacles to various forms of debt restructuring, including nego-
tiated 
interest 
reduction, 
the 
amortization 
of loan 
losses, 
securitization and debt conversion techniques, and discounted debt 
repurchases, as well as an analysis of the profitability of commercial 
bsmk lending to developing countries during the 10-year period 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1381 
ending on December 31,1986. The analysis should include an assess-
ment of the impact of the various forms of debt restructuring on the 
development of a secondary market in developing country debt and 
on the safety and soundness of the United States banking system, 
(c) REPORT REQUIRED.—Within 6 months after the date of the 
enactment of this Act, the Comptroller of the Currency, the Board of 
Governors of the Federal Reserve System, and the Federal Deposit 
Insurance Corporation shall transmit to the Congress a report 
containing the findings and conclusions of such agencies with re-
spect to the study required under subsection (a), together with any 
recommendations concerning legislation which such agencies deter-
mine to be necessary or appropriate to remove regulatory obstacles 
to negotiated reductions in the debt service obligations associated 
with sovereign debt. 
SEC. 3123. LIMITED PURPOSE SPECIAL DRAWING RIGHTS FOR THE POOR-
EST HEAVILY INDEBTED COUNTRIES. 
(a) STUDY REQUIRED.— 
(1) IN GENERAL.—The Secretary of the Treasury, in consulta-
tion with the directors and staff of the International Monetary 
Fund and such other interested parties as the Secretary may 
determine to be appropriate, shall conduct a study of the fea-
sibility and the efficacy of reducing the international debt of the 
poorest of the heavily indebted countries through a one-time 
allocation by the International Monetary Fund of limited pur-
pose Special Drawing Rights to such countries in accordance 
with a plan which provides that— 
(A) the allocation be made without regard to the quota 
established for any such country under the Articles of 
Agreement of the Fund; 
(B) limited purpose Special Drawing Rights be used only 
to repay official debt of any such country; 
(C) the allocation of limited purpose Special Drawing 
Rights to any such country not be treated as an allocation 
on which such country must pay interest to the Fund; and 
(D) the use of limited purpose Special Drawing Rights by 
any such country to repay officisd debt shall be treated as 
an allocation of regular Special Drawing Rights to the 
creditor. 
(2) ADDITIONAL FACTORS TO BE STUDIED.—The study required 
under paragraph (1) shall include the following: 
(A) To the extent the creation and allocation of the 
limited purpose Special Drawing Rights described in para-
graph (1) would require an amendment of the Articles of 
Agreement of the International Monetary Fund, an assess-
ment of the period of time within which such amendment 
could be ratified by the member nations, based on discus-
sions with the major members of the Fund. 
(B) An assessment of other means for achieving the objec-
tives of principal and interest reduction on official debt of 
the poorest heavily indebted countries through the use of 
Special Drawing Rights. 
(C) A comparative evaluation of proposals of other mem-
bers of the International Monetary Fund, the directors and 
staff of the Fund, and other interested parties. 
(D) An analysis of the effect the implementation of the 
provisions in paragraph (1) would have on bilateral and 
102 STAT. 1382 
PUBLIC LAW 100-418—AUG. 23, 1988 
Multilateral 
Development 
Banks 
Procurement 
Act of 1988. 
22 u s e 262a 
note. 
22 u s e 262a. 
multilateral lenders, the international monetary system, 
and such other provisions of this Act as may be appropriate. 
(E) A comparative analysis of the available alternatives 
identified under subparagraph (B) or (C). 
(b) REPORT REQUIRED.—Within 3 months after the date of the 
enactment of this Act, the Secretary of the Treasury shall submit a 
report to the Ck)mmittee on Banking, Finance and Urban Affairs of 
the House of Representatives and the Committee on Banking, Hous-
ing, and Urban Affairs and the Committee on Foreign Relations of 
the Senate containing the findings and conclusions of the Secretary 
pursuant to the study required under subsection (a), together with— 
(1) the recommendation of the Secretary as to which, of all the 
alternatives for providing relief for the poorest of the heavily 
indebted countries which were assessed in connection with such 
study, represents the best available option; and 
(2) recommendations for such legislation and administrative 
action as the Secretary determines to be necessary and appro-
priate to implement such option. 
Subtitle C—Multilateral Development Banks 
SEC. 3201. SHORT TITLE. 
This subtitle may be cited as the 
Banks Procurement Act of 1988". 
'Multilateral Development 
SEC. 3202. MULTILATERAL DEVELOPMENT BANK PROCUREMENT. 
(a) EIxECunvE DIRECTORS.—^The Secretary of the Treasury shall 
instruct the United States Executive Director of each multilateral 
development bank to attach a high priority to promoting opportuni-
ties for exports for goods and services from the United States and, in 
carrying out this fimction, to investigate thoroughly any complaints 
from United States bidders about the awarding of procurement 
contracts by the multilateral development banks to ensure that all 
contract procedures and rules of the banks are observed and that 
United States firms are treated fairly. 
(b) OFFICER OF PROCUREMENT.— 
(1) ESTABLISHMENT.—The Secretary of the Treasury shall des-
ignate, within the Office of International Affairs in the Depart-
ment of the Treasury, an officer of multilateral development 
bank procurement. 
(2) FUNCTION.—^The officer shall act as the liaison between the 
Department of the Treasury, the Department of Commerce, and 
the United States Executive Directors' offices in the multilat-
eral development banks, in canying out this section. The officer 
shall cooperate with the Department of Commerce in efforts to 
improve opportunities for multilateral development bank 
procurement by United States companies. 
(b) MULTILATERAL DEVELOPMENT BANK DEFINED.—As used in this 
section, the term "multilateral development bank" includes the 
International Bank for Reconstruction and Development, the Inter-
national Development Association, the International 
Finance 
Corporation, the Inter-American Development Bank, the Inter-
American Investment Corporation, the Asian Development Bank, 
the African Development Bank, and the African Development Fund. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1383 
Subtitle D—Export-Import Bank and Tied Aid 
Credit Amendments 
SEC. 3301. SHORT TITLE. 
This subtitle may be cited as the "Export-Import Bank and Tied 
Aid Credit Amendments of 1988". 
SEC. 3302. PROVISIONS RELATING TO TIED AID CREDIT. 
(a) FINDINGS.—The Congress finds that— 
(1) negotiations have led to an international agreement to 
increase the grant element required in tied aid credit offers; 
(2) concern continues to exist that countries party to the 
agreement may continue to offer tied aid credits that deviate 
from the agreement; 
(3) in such cases, the United States could continue to lose 
export sales in connection with the aggressive, and in some 
cases, unfair, tied aid practices of such countries; and 
(4) in such cases, the Export-Import Bank of the United States 
should continue to use the Tied Aid Credit Fund established by 
section 15(c) of the Export-Import Bank Act of 1945 to discour-
age the use of such predatory ^nancing practices. 
(b) EXTENSION OF TIED AID CREDIT FUND.—Subsections (cX2) and 
(e)(1) of section 15 of the Export-Import Bank Act of 1945 (12 U.S.C. 
635i-3 (c)(2) and (eXD) are each amended by striking out "and 1988" 
and inserting in lieu thereof "1988, and 1989". 
(c) REPORT.— 
(1) IN GENERAL.—On or before December 31, 1988, the Presi-
dent and Chairman of the Export-Import Bank of the United 
States, in cooperation with other appropriate government Eigen-
cies, shall submit to the Speaker of the House of Representa-
tives and the President pro tempore of the Senate a written 
report identifying and analyzing the tied aid credit practices of 
other countries and shall make recommendations for dealing 
with such practices. 
(2) CONSULTATION.—In preparing the report described in para-
graph (1), the Export-Import Bank shall consult with appro-
priate international organizations such as the International 
Bank for Reconstruction and Development, the International 
Monetary Fund, and the Development Assistance Committee of 
the Organization for Economic Cooperation and Development, 
and with the countries which are party to the Arrangement on 
Guidelines for Officially Supported Export Credits adopted by 
the Organization for Economic C!ooperation and Development in 
November 1987. 
SEC. 3303. REPORT ON UNITED STATES EXPORTS TO DEVELOPING 
COUNTRIES. 
Within 90 days after the date of the enactment of this Act, the 
President and Chairman of the Export-Import Bank of the United 
States shall submit to the Committee on Banking, Finance and 
Urban Affairs of the House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the Senate a written 
report which contains— 
Export-Import 
Bank and Tied 
Aid Credit 
Amendments of 
1988 
12 u s e 635 note. 
12 u s e 635i-3 
note. 
102 STAT. 1384 
PUBLIC LAW 100-418—AUG. 23, 1988 
(1) an assessment of the effectiveness of recent program 
changes in increasing United States exports to developing coun-
tries; and 
(2) an identification of additional specific policy and program 
changes which— 
(A) would enable the Bank to increase the financing of 
United States exports to developing countries; and 
(B) would encourage greater private sector participation 
in such financing efforts. 
SEC. 3304. AMENDMENTS TO SECTION 2(e) OF THE EXPORT-IMPORT BANK 
ACT OF 1945. 
(a) TIME FOR DETERMINING SUPPUES.—Section 2(eXlXA)(i) of the 
Export-Import Bank Act of 1945 (12 U.S.C. 635(e)(l)(A)(i)) is amended 
by striking out "productive capacity is expected to become opera-
tive" and inserting in lieu thereof "commodity will first be sold". 
(b) 
MAKING 
COMPARATIVE INJURY 
DETERMINATIONS.—Section 
2(e)(2) of such Act (12 U.S.C. 635(eX2)) is amended— 
(1) by inserting "short- and long-term" before "injury to 
United States producers"; and 
(2) by inserting "and emplo3mient" before "of the same, simi-
lar, or competing commodity". 
(c) SUBSTANTIAL INJURY DEFINED FOR EXPORT-IMPORT BANK DETER-
MINATIONS.—Section 2(e) of such Act (12 U.S.C. 635(e)) is amended by 
adding at the end the following: 
"(3) DEFINITION.—For purposes of paragraph (IXB), the exten-
sion of any credit or guarantee by the Bank will cause substan-
tial injury if the £miount of the capacity for production estab-
lished, or the amount of the increase in such capacity expanded, 
by such credit or guarantee equals or exceeds 1 percent of 
United States production.". 
E
x
p
o
r
t T
r
a
d
i
n
g 
Subtltlc E—Export Trading Company Act 
Company Act 
A 
J 
x 
Amendments of 
Amendments 
1988. 
12 u s e 1841 
note. 
SEC. 3401. SHORT TITLE. 
This subtitle may be cited as the "Export Trading Company Act 
Amendments of 1988". 
SEC. 3402. EXPORT TRADING COMPANY ACT AMENDMENTS. 
(a) STANDARDS FOR DETERMINATION OF EXPORT TRADING COMPANY 
STATUS.—Section 4(cX14) of the Bank Holding Company Act of 1956 
(12 U.S.C. 1843(c)(14)) is amended by inserting after subparagraph 
(F) the following new subparagraph: 
"(G) DETERMINATION OF STATUS AS EXPORT TRADING COM-
PANY.— 
"(i) TIME PERIOD REQUIREMENTS.—For purposes of 
determining whether an export trading company is 
operated principally for the purposes described in 
subparagraph (FXi)— 
"(I) the operations of such company during the 2-
year period beginning on the date such company 
commences operations shall not be taken into ac-
count in making any such determination; and 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1385 
"(ID not less than 4 consecutive years of oper-
ations of such company (not including any portion 
of the period referred to in subclause (I)) shall be 
taken into account in making any such determina-
tion, 
"(ii) EXPORT REVENUE REQUIREMENTS.—A company 
shall not be treated as operated principally for the 
purposes described in subparagraph (FXi) unless— 
"(I) the revenues of such company from the 
export, or facilitating the export, of goods or 
services produced in the United States exceed the 
revenues of such company from the import, or 
facilitating the import, into the United States of 
goods or services produced outside the United 
States; and 
"(Q) at least Vz of such company's total revenues 
are revenues from the export, or facilitating the 
export, of goods or services produced in the United 
States by persons not affiliated with such com-
pany.". 
(b) LEVERAGE.—Section 4(cX14XA) of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1843(cX14XA)) is amended by redesignating 
clauses (v) and (vi) as clauses (vi) and (vii), respectively, and by 
inserting after clause (iv) the following new clause: 
"(v) LEVERAGE.—The Board may not disapprove any pro- Securities. 
posed investment solely on the basis of the anticipated or 
proposed asset-to-equity ratio of the export trading com-
pany with respect to which such investment is proposed, 
unless the anticipated or proposed annual average asset-to-
equity ratio is greater than 20-to-l.". 
(c) INVENTORY.—Section 4(cX14XA)) of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1843(cX14)) is amended by inserting after 
subparagraph (G) (as added by subsection (a) of this section) the 
following new subparagraph: 
"(H) INVENTORY.— 
"(i) NO GENERAL LIMITATION.—The Board may not 
prescribe by regulation any maximum dollar amount 
limitation on the value of goods which an export trad-
ing company may maintain in inventory at any time. 
"(ii) SPECIFIC LIMITATION BY ORDER.—Notwithstand-
ing clause (i), the Board may issue an order establish-
ing a maximimi dollar amount limitation on the value 
of goods which a particular export trading company 
may maintain in inventory at any time (after such 
company has been operating for a reasonable period of 
time) if the Board finds that, under the facts and 
circumstances, such limitation is necessary to prevent 
risks that would affect the financial or managerial 
resources of an investor bank holding company to an 
extent which would be likely to have a materially 
adverse effect on the safety and soundness of any 
subsidiary bank of such bank holding company.". 
102 STAT. 1386 
PUBLIC LAW 100-418—AUG. 23, 1988 
AS^fYgg?^^" 
Subtitle F—Primary Dealers 
22 use 5341. 
SEC. 3501. SHORT TITLE. 
This subtitle may be cited £is the "Primary Dealers Act of 1988". 
22 use 5342. 
SEC. 3502. REQUIREMENT OF NATIONAL TREATMENT IN UNDERWRITING 
GOVERNMENT DEBT INSTRUMENTS. 
(a) FINDINGS.—The Congress finds that— 
(1) United States companies can successfully compete in for-
eign markets if they are given fair access to such markets; 
(2) a trade surplus in services could offset the deficit in 
manufactured goods and help lower the overall trade deficit 
significantly; 
(3) in contrast to the barriers faced by United States firms in 
Japan, Japanese firms generally have enjoyed access to United 
States financial markets on the same terms as United States 
firms; and 
(4) United States firms seeking to compete in Japan face or 
have faced a variety of discriminatory barriers effectively 
precluding such firms from fairly competing for Japanese busi-
ness, including— 
(A) limitations on membership on the Tokyo Stock 
Exchange; 
(B) high fixed commission rates (ranging as high as 80 
percent) which must be paid to members of the exchange by 
nonmembers for executing trades; 
(C) unequal opportunities to participate in and act as lead 
manager for equity and bond underwritings; 
(D) restrictions on access to automated teller machines; 
(E) arbitrarily applied employment requirements for 
opening branch offices; 
(F) long delays in processing applications and granting 
approvals for licenses to operate; and 
(G) restrictions on foreign institutions' participation in 
Ministry of Finance policy advisory councils. 
0)) 
DESIGNATION OF CERTAIN PERSONS AS PRIMARY DEALERS 
PROHIBITED.— 
(1) GENERAL RULE.—Neither the Board of Governors of the 
Federal Reserve System nor the Federal Reserve Bank of New 
York may designate, or permit the continuation of any prior 
designation of, any person of a foreign country as a primary 
dealer in government debt instruments if such foreign country 
does not accord to United States companies the same competi-
tive opportunities in the underwriting and distribution of 
government debt instruments issued by such country as such 
country accords to domestic companies of such country. 
(2) CERTAIN PRIOR ACQUISITIONS EXCEPTED.—Paragraph (1) 
shall not apply to the continuation of the prior designation of a 
company as a primary dealer in government debt instruments 
if— 
(A) such designation occurred before July 31, 1987; and 
(B) before July 31,1987— 
(i) control of such company was acquired from a 
person (other than a person of a foreign country) by a 
person of a foreign country; or 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1387 
(ii) in conjunction with a person of a foreign country, 
such company informed the Federal Reserve Bank of 
New York of the intention of such person to acquire 
control of such company. 
(c) EXCEPTION FOR COUNTRIES HAVING OR NEGOTIATING BILATERAL 
AGREEMENTS WITH THE UNITED STATES.—Subsection (b) shall not 
apply to any person of a foreign country if— 
(1) that country, as of January 1, 1987, was negotiating a 
bilateral agreement with the United States under the authority 
of section 102(bX4)(A) of the Trade Act of 1974 (19 U.S.C. 
2112(b)(4XA)); or 
(2) that country has a bilateral free trade area agreement 
with the United States which entered into force before 
January 1,1987. 
(d) PERSON OF A FOREIGN COUNTRY DEFINED.—For purposes of this 
section, a person is a "person of a foreign country" if that person, or 
any other person which directly or indirectly owns or controls that 
person, is a resident of that country, is organized under the laws of 
that country, or has its principal place of business in that country. 
(e) EFFECTIVE DATE.—This section shall take effect 12 months 
after the date of the enactment of this Act. 
Subtitle G—Financial Reports 
SEC. 3601. SHORT TITLE. 
This subtitle may be cited as the "Financial Reports Act of 1988". 
SEC. 3602. QUADRENNIAL REPORTS ON FOREIGN TREATMENT OF UNITED 
STATES FINANCIAL INSTITUTIONS. 
Not less frequently than every 4 years, beginning December 1, 
1990, the Secretary of the Treasury, in conjunction with the Sec-
retary of State, the Board of Grovernors of the Federal Reserve 
System, the Comptroller of the Currency, the Federal Deposit Insur-
ance Corporation, the Securities and Exchange Commission, and the 
Department of Commerce, shall report to the Congress on (1) the 
foreign countries from which foreign financial services institutions 
have entered into the business of providing financial services in the 
United States, (2) the kinds of financial services which are being 
offered, (3) the extent to which foreign countries deny national 
treatment to United States banking organizations and securities 
companies, and (4) the efforts undertaken by the United States to 
eliminate such discrimination. The report shall focus on those coun-
tries in which there are significant denials of national treatment 
which impact United States financial firms. The report shall also 
describe the progress of discussions pursuant to section 3603. 
SEC. 3603. FAIR TRADE IN FINANCIAL SERVICES. 
(a) DISCUSSIONS.—When advantageous the President or his des-
ignee shall conduct discussions with the governments of countries 
that are major financial centers, aimed at: 
(1) ensuring that United States banking organizations and 
securities companies have access to foreign markets and receive 
national treatment in those markets; 
(2) reducing or eliminating barriers to, and other distortions 
of, international trade in financial services; 
Financial 
Reports Act of 
1988. 
22 use 5351. 
22 use 5352. 
President of U.S. 
22 use 5353. 
102 STAT. 1388 
PUBLIC LAW 100-418—AUG. 23, 1988 
Reports. 
22 use 5354. 
Agricultural 
Competitiveness 
£ind Trade Act of 
1988 
7 use 5201 note. 
(3) achieving reasonable comparability in the t3^pes of finan-
cial services permissible for financial service companies; and 
(4) developing uniform supervisory standards for banking 
organizations and securities companies, including uniform cap-
ital standards. 
(b) CONSULTATION BEFORE DISCUSSIONS.—Before entering into 
those discussions, the President or his designee shall consult with 
the committees of jurisdiction in the Senate and the House of 
Representatives. 
(c) RECOAIMENDATIONS.—After completing those discussions and 
after consultation with the committees of jurisdiction, the President 
shall transmit to the Congress any recommendations that have 
emerged from those discussions. Any recommendations for changes 
in United States financial laws or practices shall be accompanied by 
a description of the changes in foreign &iancial laws or practices 
that would accompany action by the Congress, and by an expla-
nation of the benefits that would accrue to the United States from 
adoption of the recommendations. 
(d) CONSTRUCTION OF SECTION.—Nothing in this section may be 
construed as prior approval of any legislation which may be nec-
essary to implement any recommendations resulting from discus-
sions under this section. 
SEC. 3604. BANKS LOAN LOSS RESERVES. 
The Federal Reserve Board shall submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the Commit-
tee on Banking, Finance and Urban Affairs of the House of Rep-
resentatives a report on the issues raised by including loan loss 
reserves as part of banks' primary capital for r^ulatory purposes by 
March 31,1989. Such report shall include a review of the treatment 
of loan loss reserves and the composition of primary capital of banks 
in other major industrialized countries, and shall include an analy-
sis as to whether loan loss reserves should continue to be counted as 
primary capital for regulatory purposes. 
TITLE IV—AGRICULTURAL TRADE 
SEC. 4001. SHORT TITLE. 
This title may be cited as the "Agricultural Competitiveness and 
Trade Act of 1988". 
Subtitle A—Findings, Policy, and Purpose 
7 use 5201. 
SEC. 4101. FINDINGS. 
Congress finds that— 
(1) United States agricultural exports have declined by more 
than 36 percent since 1981, from $43,800,000,000 in 1981 to 
$27,900,000,000 in 1987; 
(2) the United States share of the world market for agricul-
tural commodities and products has dropped by 20 percent 
during the last 6 years; 
(3) for the first time in 15 years, the United States incurred 
monthly agricultural trade deficits in 1986; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1389 
(4) the loss of $1,000,000,000 in United States agricultural 
exports causes the loss of 85,000 agricultural jobs and the loss of 
60,000 nonagricultural jobs; 
(5) the loss of agricultural exports threatens family farms and 
the economic well-being of rural communities in the United 
States; 
(6) factors contributing to the loss of United States agricul-
tural exports include changes in world agricultural markets 
such as— 
(A) the addition of new exporting nations; 
(B) innovations in agricultural technology; 
(C) increased use of export subsidies designed to lower the 
price of commodities on the world market; 
(D) the existence of barriers to agricultural trade; 
(E) the slowdown in the growth of world food demand in 
the 1980's due to cyclical economic factors, including cur-
rency fluctuations and a debt-related slowdown in the eco-
nomic growth of agricultural markets in certain developing 
countries; and 
(F) the rapid buildup of surplus stocks as a consequence of 
favorable weather for agricultural production during the 
1980's; 
(7) increasing the volume and value of exports is important to 
the financial well-being of the farm sector in the United States 
and to increasing farm income in the United States; 
(8) in order to increase agricultural exports and improve 
prices for farmers and ranchers in the United States, it is 
necessary that all agricultural export programs of the United 
States be used in an expeditious memner, including programs 
established under the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1691 et seq.), the Commodity 
Credit Corporation Charter Act (15 U.S.C. 714 et seq.), and 
section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431); 
(9) greater use should be made by the Secretary of Agriculture 
of the authorities established under section 4 of the Food for 
Peace Act of 1966 (7 U.S.C. 1707a), the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.), 
section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431), and 
the Commodity Credit Corporation Charter Act (15 U.S.C. 714 et 
seq.) to provide intermediate credit financing and other assist-
ance for the esteblishment of facilities in importing countries 
to— 
(A) improve the handling, marketing, processing, storage, 
and distribution of imported agricultural commodities and 
products; and 
(B) increase livestock production to enhance the demand 
for United States feed grains; 
(10) food aid and export assistence programs in developing 
countries stimulate economic activity which causes incomes to 
rise, and, as incomes rise, diets improve and the demand for and 
ability to purchase food increases; 
(11) private voluntary oi^anizations and cooperatives are 
important and successful partners in our food aid and develop-
ment programs; and 
(12) in addition to meeting humanitarian needs, food aid used 
in sales and barter programs by private voluntary organizations 
and cooperatives— 
19-194 O—91—Part 2 
13 : QL 3 
102 STAT. 1390 
PUBLIC LAW 100-418—AUG. 23, 1988 
(A) provides communities with health care, credit sys-
tems, and tools for development; and 
(B) establishes the infrastructure that is essential to the 
expansion of markets for United States agricultural 
commodities and products. 
7 use 5202. 
SEC. 4102. POLICY. 
It is the policy of the United States— 
(1) to provide, through all possible means, agricultural 
commodities and products for export at competitive prices, with 
full assurance of quality and reliability of supply; 
(2) to support the principle of free trade and the promotion of 
fair trade in agricultural commodities and products; 
(3) to support fully the negotiating objectives set forth in 
section 1101(b) of this Act to eliminate or reduce substantially 
constraints on fair and open trade in agricultural commodities 
and products; 
(4) to use statutory authority to counter unfair foreign trade 
practices and to use all available means, including export pro-
motion programs, and, if necessary, restrictions on United 
States imports of agricultural commodities and products, in 
order to encourage fair and open trade; and 
(5) to provide for increased representation of United States 
agricultural trade interests in the formulation of national fiscal 
and monetary policy affecting trade. 
7 use 5203. 
SEC. 4103. PURPOSE. 
It is the purpose of this title— 
(1) to increase the effectiveness of the Department of Agri-
culture in agricultural trade policy formulation and im-
plementation and in assisting United States agricultural 
producers to participate in international agricultural trade, by 
strengthening the operations of the Department of Agriculture; 
and 
(2) to improve the competitiveness of United States agricul-
tural commodities and products in the world market. 
Subtitle B—Agricultural Trade Initiatives 
PART 1—GENERAL PROVISIONS 
7 use 5211. 
SEC. 4201. LONG-TERM AGRICULTURAL TRADE STRATEGY REPORTS. 
President of U.S. 
(a) CONTENTS.—The Secretary of Agriculture shall prepare an-
nually, and the President shall submit together with the budget for 
each fiscal year, a Long-Term Agricultural Trade Strategy Report 
establishing recommended policy goals for United States agricul-
tural trade and exports, and recommended levels of spending on 
international activities of the Department of Agriculture, for 1-, 5-, 
and 10-fiscal year periods. In preparing each such report, the Sec-
retary shall consult with the United States Trade Representative to 
ensure that the report is coordinated with the annual national trade 
policy Eigenda included in the annual report for the relevant fiscsd 
year prepared under section 163 of the Trade Act of 1974 (19 U.S.C. 
2213). Each such report shall include— 
(1) findings with respect to trends in the comparative position 
of the United States and other countries in the export of 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1391 
agricultural commodities and products, organized by major 
commodity group and including a comparative analysis of the 
cost of production of such commodities and products; 
(2) findings with respect to new developments in research 
conducted by other countries that may affect the competitive-
ness of United States agricultural commodities and products; 
(3) findings and recommendations with respect to the move-
ment of United States agricultural commodities and products in 
nonmarket economies; 
(4) as appropriate, the agricultural trade goals for each agri-
cultural commodity and value-added product produced in the 
United States for the period involved, expressed in both phys-
ical volume and monetary value; 
(5) recommended Federal policy and programs to meet such 
agricultural trade goals; 
(6) reconmiended levels of Federal spending on international 
programs and activities of the Department of Agriculture to 
meet such agricultural trade goals; 
(7) recommended levels of Federal spending on programs and 
activities of agencies other than the Department of Agriculture 
to meet such agricultural trade goals; and 
(8) recommended long-term strategies for growth in agricul-
tural trade and exports— 
(A) taking into account United States competitiveness, 
trade n^otiations, and international monetary and ex-
change rate policies; and 
(B) including specific recommendations with respect to 
export enhancement pn^ams (including credit programs 
and export payment-in-kind programs), market develop-
ment activities, and foreign agricultural and economic 
development assistance activities needed to implement such 
strat^es. 
(b) TREATMENT AS ANNUAL BUDGET SUBMISSION.—Provisions of 
each Long-Term Agricultural Trade Strat^y Report that relate to 
recommended levels of spending on international activities of the 
Department of Agriculture for the upcoming fiscal year shall be 
treated as the President's annual budget submission to Congress for 
such activities for such fiscal year, and shall be submitted along 
with the budget request for other prc^rams of the Department of 
Agriculture for such fiscal year. 
(c) SUCCEEDING REPORTS.—^The Secretary of Agriculture, in each 
annual Long-Term Agricultural Trade Strategy Report, shall iden-
tify any recommendations in such report that might modify the 
long-term policy contained in any previous report. 
(d) RECOMMENDATIONS FOR CHANGES IN LAW.—^The President shall President of U.S. 
include in each annual budget submission recommendations for 
such changes in law as are required to meet the long-term goals 
established in the Report. 
SEC 4202. TECHNICAL ASSISTANCE IN TRADE NEGOTIATIONS. 
7 USC 5212. 
The Secretary of Agriculture shall provide technical services to 
the United States Trade Representative on matters pertaining to 
agricultural trade and with respect to international n^otiations on 
issues related to agricultural trade. 
102 STAT. 1392 
PUBLIC LAW 100-418—AUG. 23, 1988 
7 use 5213. 
SEC. 4203. JOINT DEVELOPMENT ASSISTANCE AGREEMENTS WITH 
CERTAIN TRADING PARTNERS. 
(a) DEVELOPMENT OF PLAN.—With respect to any country that has 
a substantial positive trade balance with the United States, the 
Secretary of Agriculture, in consultation with the Secretary of State 
and (through the Secretary of State) representatives of such country, 
may develop an appropriate plan under which that country would 
purchase United States agricultural commodities or products for use 
in development activities in developing countries. In developing 
such plan, the Secretary of Agriculture shall take into consideration 
the agricultural economy of such country, the nature and extent of 
such country's programs to assist developing countries, and other 
relevant factors. The Secretary of Agriculture shall submit each 
such plan to the President as soon as practicable. 
(b) AGREEMENT.—The President may enter into an agreement 
with any country that has a positive trade balance with the United 
States under which that country would purchase United States 
agricultural commodities or products for use in agreed-on develop-
ment activities in developing countries. 
7 use 5214. 
SEC. 4204. REORGANIZATION EVALUATION. 
The Secretary of Agriculture shall evaluate the reorganization 
proposal recommended by the National Commission on Agricultural 
Trade and Export Policy and other proposals to improve manage-
ment of international trade activities of the Department of Agri-
culture. To assist the Secretary in the evaluation, the Secretary 
shall appoint a private sector advisory committee of not less than 4 
members, who shall be appointed from among individuals repre-
senting farm and commodity organizations, market development 
Reports. 
cooperators, and agribusiness. Not later than April 30, 1989, the 
Secretary shall report the findings of the evaluation to Congress, 
together with the views and recommendations of the private sector 
advisory committee. 
7 use 5215. 
SEC. 4205. CONTRACTING AUTHORITY TO EXPAND AGRICULTURAL 
EXPORT MARKETS. 
(a) IN GENERAL.—The Secretary of Agriculture may contract with 
individuals for services to be performed outside the United States as 
the Secretary determines necessary or appropriate for carr3dng out 
programs and activities to maintain, develop, or enhance export 
markets for United States agricultural commodities and products. 
0>) NOT EMPLOYEES OF THE UNITED STATES.—Such individuals shall 
not be regarded as officers or employees of the United States. 
7 use 5216. 
SEC. 4206. ESTABLISHMENT OF TRADE ASSISTANCE OFFICE. 
(a) ESTABUSHMENT WiTHIN THE FOREIGN AGRICULTURAL SERV-
ICE.—The Secretary of Agriculture shall establish an office within 
the Foreign Agricultural Service to carry out the duties described in 
subsections (b) and (c) under the direction of the Administrator of 
the Foreign Agricultursd Service. 
0>) PRIMARY RESPONSIBILITY.—The office established under subsec-
tion (a) shall provide trade assistance and information to persons 
who are interested in exporting United States agricultural commod-
ities and products or who believe they have been injured by unfair 
trade practices with respect to trade in agricultural commodities 
and products. 
(c) DUTIES.—The office established under subsection (a) shall— 
PUBLIC LAW 100-418—AUG. 23,1988 
102 STAT. 1393 
(1) compile and make readily available international trade 
information, including information concerning trade practices 
carried out by other countries to promote the export of agricul-
tural commodities and products, trade barriers imposed by 
other countries, unfair trade practices of other countries, and 
remedies under United States law that might be available to 
persons injured by unfair trade practices; and 
(2) provide information and assistance to persons interested in 
participating in programs carried out by the Foreign Agricul-
tural Service, the Commodity Credit Corporation, and other 
agencies with respect to the international marketing and export 
of domestically produced agricultural commodities and products 
or who believe they have been injured by unfair trade practices 
of other countries with respect to trade in agricultural commod-
ities and products. 
(d) REPORT.— 
(1) DEADUNE FOR SUBMISSION.—Not later than 60 days after 
the end of each fiscal year, the Administrator of the Foreign 
Agricultural Service shall submit a report described in para-
graphs (2) and (3) to the Committee on Agriculture of the House 
of Representatives and the Committee on Agriculture, Nutri-
tion, and Forestry of the Senate. 
(2) CONTENTS OF EACH REPORT.—Each such report shall 
describe— 
(A) the type of information that is currently aveilable 
through the office established by this section; and 
(B) the type of assistance provided to persons during the 
previous fiscal year. 
(3) ADDITIONAL CONTENTS FOR FIRST REPORT.—In the first 
report submitted under this section, the Administrator shall 
also— 
(A) provide an analysis of the information currently 
available concerning foreign agricultural trade practices 
and domestic agricultural trade promotion programs and 
the methods used to disseminate such information; 
(B) provide recommendations with respect to additional 
information and assistance that should be made available 
to interested persons; and 
(C) provide an analysis of the degree that overlapping 
information and reports concerning agricultural trade are 
prepared. 
PART 2—FOREIGN AGRICULTURAL SERVICE 
SEC. 4211. PERSONNEL OF THE SERVICE. 
7 USC 5231. 
(a) INCREASED LEVEL.—To ensure that the agricultural export 
programs of the United States are carried out in an effective 
manner, the authorized number of personnel for the Foreign Agri-
cultural Service of the Department of Agriculture (hereinafter in 
this part referred to as the "Service") shall not be less than 900 full-
time employees during each of the fiscal years 1989 and 1990. 
O
t
)
) RANK OF FOREIGN AGRICULTURAL SERVICE OFFICERS IN FOREIGN 
MISSIONS.—Notwithstanding any other provision of law, the Sec-
retary of State shall, upon the request of the Secretary of Agri-
culture, accord the diplomatic title of Minister-Counselor to the 
senior Service officer Eissigned to any United States mission abroad. 
102 STAT. 1394 
PUBLIC LAW 100-418—AUG. 23, 1988 
The number of Service officers holding such diplomatic title at any 
time may not exceed eight. 
7 use 5232. 
SEC. 4212. AGRICULTURAL ATTACHE EDUCATIONAL PROGRAM. 
The Administrator of the Service (hereinafter in this part referred 
to as the "Administrator") shall establish a program within the 
Service that directs attaches of the Service who are reeissigned from 
abroad to the United States, and other personnel of the Service, to 
visit and consult with producers and exporters of agricultural 
commodities and products and State officials throughout the United 
States concerning various methods to increase exports of United 
States agricultural commodities and products. 
7 use 5233. 
SEC. 4213. PERSONNEL RESOURCE TIME. 
(a) IN GENERAL.—In planning the overall allocation of personnel 
resource time of agricultural attaches of the Service, the Adminis-
trator shall ensure that the maximum quantity practicable of the 
overall personnel resource time of agricultural attaches of the Serv-
ice be devoted to activities designed to increase markets for United 
States agricultural commodities and products, 
(b) REPORTS.—The Administrator shall submit reports to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate 
that describe the allocation of personnel resource time of agricul-
tural attaches during the 1988 and 1989 fiscal years. The report for 
fiscal year 1988 shall be submitted not later than September 30, 
1988, or 30 days after the date of the enactment of this Act, 
whichever is later. The report for fiscal year 1989 shall be submitted 
not later than September 30,1989. 
7 use 5234. 
SEC. 4214. COOPERATOR ORGANIZATIONS. 
(a) SENSE OF CONGRESS.—It is the sense of Congress that the 
foreign market development cooperator program of the Service, and 
the activities of individual foreign market cooperator organizations, 
have been among the most successful and cost-effective means to 
expand United States agricultural exports. Congress affirms its 
support for the program and the activities of the cooperator 
organizations. The Administrator and the private sector should 
work together to ensure that the program, and the activities of 
cooperator organizations, are expanded in the future. 
Marketing. 
0?) COMMODITIES FOR CooPERATOR ORGANIZATIONS.—The Secretary 
of Agriculture may make available to cooperator organizations agri-
cultural commodities owned by the Commodity Credit Corporation, 
for use by such cooperators in projects designed to expand markets 
for United States agricultural commodities and products. 
(c) RELATION TO FUNDS.—Commodities made available to coopera-
tor organizations under this section shall be in addition to, and not 
in lieu of, funds appropriated for market development activities of 
such cooperator organizations. 
(d) CoNFUCTS OF INTEREST.—The Secretary shall take appropriate 
action to prevent conflicts of interest among cooperator organiza-
tions participating in the cooperator program. 
(e) EVALUATION.—It is the sense of Congress that the Secretary 
should establish a consistent, objective means for the evaluation of 
cooperator programs. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1395 
SEC. 4215. AUTHORIZATION OF ADDITIONAL APPROPRIATIONS. 
There are authorized to be appropriated for the Service, in addi-
tion to any sums otherwise authorized to be appropriated by any 
provision of law other than this section, $20,000,000 for each of the 
fiscal years 1988, 1989, and 1990 for market development activities, 
including— 
(1) expansion of the agricultural attache service; 
(2) expansion of international trade policy activities of the 
Service; 
(3) enhancement of the Service worldwide market information 
system; 
(4) increasing the number of trade shows and exhibitions 
conducted by the Service and upgrading the quality of United 
States representation at trade shows and exhibitions; and 
(5) developing markets for value-added beef, pork, and poultry 
products. 
Subtitle C—Existing Agricultural Trade 
Programs 
7 use 5235. 
SEC. 4301. TRIGGERED MARKETING LOANS AND EXPORT ENHANCEMENT. 
(a) CERTIFICATION TO CONGRESS.—Notwithstanding any other 
provision of law, if, before January 1, 1990, a law has not been 
enacted in accordance with section 151 of the Trade Act of 1974 (19 
U.S.C. 2191) that implements an agreement negotiated under the 
Uruguay round of multilateral trade negotiations conducted under 
the General Agreement on Tariffs and Trade (hereinafter in this 
section referred to as "GATT negotiations") concerning agricultural 
trade, the President, not later than 45 days after such date— 
(1) shgill submit a report to the Committee on Agriculture, the 
Committee on Foreign Affairs, and the Committee on Ways and 
Means of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry and the Committee on 
Finance of the Senate describing the status of the GATT nego-
tiations concerning £igricultural trade, the progress that has 
been made to date in the negotiations, the general areas of 
disagreement, the anticipated date of completion of the negotia-
tions, and the changes in domestic farm programs that are 
likely to be necessary on conclusion of the negotiations; and 
(2) shall certify to Congress whether or not significant 
progress has been made in the negotiations. 
(b) MARKETING LOAN.— 
(1) IMPLEMENTATION.—Except as provided in paragraph (2), if 
the President does not certify that significant progress has been 
made towards reaching a GATT agreement concerning agricul-
tural trade, the President shall, not later than 60 days before 
the beginning of the marketing year for the 1990 crop of wheat, 
instruct the Secretary of Agriculture to permit producers to 
repay loans made under sections 107D(a), 105C(a), and 201(i) of 
the Agricultural Act of 1949 (7 U.S.C. 1445b-3(a), 1444e(a), and 
1446(i)) for each of the 1990 crops of wheat, feed grains, and 
soybeans at a level that is the lesser of— 
(A) the lo£m level determined for each such crop; or 
(B) the prevailing world market price for each such crop, 
as determined by the Secretary. 
President of U.S. 
7 use 1466 note. 
Reports. 
102 STAT. 1396 
PUBLIC LAW 100-418—AUG. 23, 1988 
(2) WAIVER.—The President may waive the application of 
paragraph (1) by certif3dng to Congress that implementation of 
the marketing loan would harm further negotiations. 
(3) DISCONTINUANCE.—If, after the implementation of a 
marketing loan in accordance with paragraph (1), the President 
certifies to Congress that substantial progress is being made in 
the GATT negotiations and that continuation of the marketing 
loan program implemented in accordance with paragraph (1) 
would harm such progress, the President may instruct the 
Secretary of Agriculture to discontinue the marketing loan 
program. 
(c) EXPORT ENHANCEMENT.— 
(1) IN GENERAL.—Except as provided in paragraph (4), if the 
President exercises the authority to waive or discontinue the 
marketing loan program provided for in paragraph (2) or (3) of 
subsection Ot)), the President shall instruct the Secretary of 
Agriculture to make agricultural commodities and products 
acquired by the Commodity Credit Corporation equaling at least 
$2,000,000,000 m value available during the 1990 through 1992 
fiscal years to United States exporters of domestically produced 
agricultural commodities and products for the purpose of 
making exports of such commodities and products available on 
the world market at competitive prices. 
(2) NoNDisPLACEMENT.—Commodities and products made 
available in accordemce with this subsection shall be in addition 
to, and not in lieu of, other commodities and products made 
available for the purpose of enhancing the export of United 
States commodities and products. 
(3) USE OF COMMODITY CREDIT CORPORATION.—The Secretary 
of Agriculture may use the funds, facilities, and authorities of 
the Commodity Credit Corporation to carry out this subsection. 
(4) EXCEPTION.—The President may waive the application of 
paragraph (1) by certifying to Congress that implementation of 
the export enhancement program provided for by this 
subsection would be a substantial impediment to achieving a 
successful agreement under the GATT. 
(5) DISCONTINUANCE.—If, after the implementation of para-
graph (1), the President certifies to Congress that substantisd 
prepress is being made in the GATT negotiations and that 
continuation of the export enhancement program implemented 
in accordance with paragraph (1) would harm such progress, the 
President may, not before 60 days after the consultation 
required under subsection (d) with respect to such certification, 
instruct 
the 
Secretary 
of Agriculture 
to 
suspend 
the 
implementation of such program. 
(d) CONSULTATION.—^The President may not make a certification to 
Congress under this section unless the United States Trade 
Representative— 
(1) consults about the certification with— 
(A) the Committee on Agriculture, the Committee on 
Foreign Affairs, and the Committee on Ways and Means of 
the House of Representatives; and 
(B) the Committee on Agriculture, Nutrition, and For-
estry and the Committee on Finance of the Senate; and 
Reports. 
(2) reports to the President the results of such consultation. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1397 
SEC. 4302. PRICE SUPPORT PROGRAMS FOR SUNFLOWER SEEDS AND 
Loans. 
COTTONSEED. 
'^ USC 1446 note. 
(a) SUNFLOWER SEEDS.—^If producers are permitted to repay loans 
for the 1990 crop of soybeans under section 201(i) of the Agricultural 
Act of 1949 (7 U.S.C. 1446(i)) at a level that is less than the full 
amount of the loan pursuant to section 4301 of this Act, the Sec-
retary shall support the price of sunflower seeds through loans and 
purchases for ihe 1990 crop of sunflowers in accordance with section 
20ia) of the Agricultural Act of 1949. 
0>) COTTONSEED.—If a producer is permitted to repay a loan for the 
1990 crop of soybeans under section 201(i) of the Agricultural Act of 
1949 (7 U.S.C. 1446(i)) at a level that is less than the full amount of 
the loan pursuant to section 4301 of this Act, the Secretary shall 
support the price of the 1990 crop of cottonseed at such level as the 
Secretary determines will cause cottonseed to compete on equal 
terms with soybeans on the market. The Secretary shall carry out 
this subsection using the fimds, facilities, and authorities of the 
Commodity Credit Corporation. 
(c) DISCONTINUANCE.—If the marketing loan program for the 1990 
crop of soybeans is discontinued under section 43010>X3) of this Act, 
the Secretary shall discontinue the price support programs for 
sunflower seeds and cottonseed required by this section. 
SEC. 4303. MULTIYEAR AGREEMENTS UNDER THE FOOD FOR PROGRESS 
PROGRAM. 
Section 1110 of the Food Security Act of 1985 (7 U.S.C. 1736o) is 
amended— 
(1) by redesignating subsection (k) as subsection G); and 
(2) by inserting after subsection (j) the following: 
"(k) In carrying out this section, the President shall, on request President of U.S. 
and subject to the availability of commodities, approve agreements 
that provide for commodities to be made available for distribution or 
sale by recipient countries on a multiyear basis if the agreements 
otherwise meet the requirements of this section.". 
SEC. 4304. TARGETED EXPORT ASSISTANCE. 
(a) LEVEL OF PROGRAM.—Section 1124(a) of the Food Security Act 
of 1985 (7 U.S.C. 17368(a)) is amended— 
(1) in paragraph (1)— 
(A) by striking out "1988" and inserting in lieu thereof 
"1987"; and 
(B) by striking out "and" at the end; and 
(2) by stEiking out paragraph (2) and inserting in lieu thereof 
the following: 
"(2) for the fiscal year 1988, the Secretary shall use under this 
section not less than $215,0()0,000 of the funds of, or commod-
ities owned by, the Corporation, except that the Secretary shall 
use funds or commodities of the (Corporation in excess of 
$110,000,000 only to the extent appropriations to reimburse the 
Corporation for such additional expenditures of funds or dis-
tribution of commodities are made available in advance to carry 
out this section; and 
"(3) for each of the fiscal years 1989 and 1990, the Secretary 
shall use under this section not less than $325,000,000 of the 
funds of, or commodities owned by, the Corporation.". 
(b) COUNTERVAILING DUTY ACTION.—Section 11240i>) of such Act is 
amended— 
102 STAT. 1398 
PUBLIC LAW 100-418—AUG. 23, 1988 
(1) in paragraph (1), by striking out "Funds" and inserting in 
lieu thereof "Except as provided in paragraph (3), funds"; and 
(2) by adding at the end thereof the following new paragraph: 
"(3XA) Funds or commodities made available for use under this 
section may be used by the Secretary to assist organizations consist-
ing of producers or processors of United States agricultural commod-
ities in amounts necessary to compensate the organizations for 
reasonable expenses incurred in defending countervailing duty ac-
tions instituted after January 1, 1986, in foreign countries to offset 
the benefits of the agricultural programs provided for under the 
Agricultural Act of 1949 (7 U.S.C. 1421 et seq.). In no event may such 
assistance exceed $500,000 for the defense of any one countervailing 
duty action. 
"(B) If the Secretary declines to make funds or commodities 
available under this pareigraph, the Secretary shall notify the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate 
of the reasons for declining to make the funds or commodities 
available.". 
7 u s e 1736t 
SEC. 4305. EX^aRT CREDIT GUARANTEE PROGRAM. 
"°*^" 
It is the sense of Congress that, to the extent that the Commodity 
Credit Corporation makes a specified allocation of credit guarantees 
available under the export credit guarantee program referred to in 
section 1125 of the Food Security Act of 1985 (7 U.S.C. 1736t) for 
short-term credit extended to finance the export sales of United 
States agricultural commodities and products, such allocation 
should be made on a country-only basis and not on a commodity 
basis or a commodity and country basis. 
SEC. 4306. AGRICULTURAL EXPORT ENHANCEMENT PROGRAM. 
(a) PRIORITIES^.—Section 1127(b) of the Food Security Act of 1985 (7 
U.S.C. 1736v(b)) is amended by striking out paragraph (2) and insert-
ing in lieu thereof the following new paragraph: 
"(2) may consider for participation all interested United 
States exporters, processors, and users and interested foreign 
purchasers, and may give priority to sales to countries that have 
traditionally purchased United States agricultural commodities 
and products;". 
(b) LEVEL OF FUNDING.—Section 1127(i) of such Act is amended— 
(1) by striking out "1988" and inserting in lieu thereof "1990"; 
and 
(2) by striking out "$1,500,000,000" and inserting in lieu 
thereof "$2,500,000,000". 
SEC. 4307. AGRICULTURAL ATTACHE REPORTS. 
Subsection (b) of section 1132 of the Food Security Act of 1985 (7 
U.S.C. 1736x(b)) is amended to read as follows: 
"(b) The Secretary shall— 
"(1) annually compile the information contained in such 
reports; 
"(2) in consultation with the agricultural technical advisory 
committees established under section 135(c) of the Trade Act of 
1974 (19 U.S.C. 2155(c)), include in the compilation a priority 
ranking of those trade barriers identified in subsection (a) by 
commodity group; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1399 
"(3) include in the compilation a list of actions undeilaken to 
reduce or eliminate such trade barriers; and 
"(4) make the compilation available to Congress, the trade 
assistance office created under section 4602 of the Agricultural 
Competitiveness and Trade Act of 1988, the agricultural policy 
advisory committee, and other interested parties.". 
SEC. 4308. DAIRY EXPORT INCENTIVE PROGRAM. 
Parsigraphs (2) through (3) of section 153(d) of the Food Security 
Act of 1985 (15 U.S.C. 713a-14(d)) are amended to read as follows: 
"(2) If payments in commodities are authorized, such pa3rments 
shall be made through the issuance of generic certificates redeem-
able in commodities. 
"(3) If generic certificates issued in accordance with the program 
provided for by this section are exchanged for dairy products owned 
by the Commodity CJredit Corporation, the regulations issued by the 
Secretary shall ensure that— 
"(A) such dairy products, or an equal quantity of other dairy 
products, will be sold for export by the entity; and 
"(B) any such export sales by the entity— 
"(i) wiU be in addition to, and not in place of, export sales 
of dairy products that the eiitity would otherwise make 
under the program or in the absence of the pr(^ram; and 
"(ii) to the extent practicable, will not displace commer-
cial export sales of United States dairy products by other 
exporters.". 
SEC. 4309. BARTER OF AGRICULTURAL COMMODITIES. 
7 USC 1431 note. 
In reci^nition of the importance of barter programs in expanding 
agricultural trade, it is the sense of Congress tlmt the Secretary of 
Agriculture should expedite the implementation of section 416(d) of 
the Agricultural Act of 1949 (7 U.S.C. 1431(d)) and section 1167 of 
the Food Security Act of 1985 (7 U.S.C. 1727g note and 1736aa), 
relating to the barter of agricultural commodities. 
SEC. 4310. MINIMUM LEVEL OF FOOD ASSISTANCE. 
7 USC 1691 note. 
(a) ANNUAL MINIMUM.—It is the sense of dJongress that— 
(1) the United States should maintain its historic proportion 
of food assistance constituting one-third of all United States 
foreign economic assistance; and 
(2) accordingly, the total amount of food assistance made 
available to foreign countries under the Agricultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.) 
and section 416(b) of the Agricultural Act of 1949 (7 U.S.C. 
1431(b)) should not be less than one-third of the total amount of 
foreign economic assistance provided for each fiscal year. 
(b) DEFINITION.—For purposes of this section, the term "foreign 
economic assistance" includes— 
(1) assistance under chapter 1 of part I of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2151 et seq.), the i^cultural Trade 
Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.), 
section 416(b) of the Agricultural Act of 1949 (7 U.S.C. 1431(b)), 
or any other law authorizing economic assistance for foreign 
countries; and 
(2) United States contributions to the International Bank for 
Reconstruction and Development, the International Develop-
ment Association, the Inter-American Development Bank, the 
102 STAT. 1400 
PUBLIC LAW 100-418—AUG. 23, 1988 
Asian Development Bank, the African Development Bank, or 
any other multilateral development bank. 
7 u s e 1691 note. 
SEC. 4311. FOOD AID AND MARKET DEVELOPMENT. 
(a) PoucY STATEMENT.—It is the policy of the United States to use 
food aid and agriculturally-related foreign economic assistance 
programs more effectively to develop markets for United States 
agricultural commodities and products. 
President of U.S. 
(b) REQUIREMENT.—The President (or, as appropriate, the Sec-
retary of Agriculture) shall encourage recipient countries under 
food Eissistance agreements entered into under any program 
administered by the Secretary to agree to give preference to United 
States food and food products in future food purchases. 
Subtitle D—Wood and Wood Products 
SEC. 4401. DEVELOPING MARKETS FOR WOOD AND WOOD PRODUCTS 
UNDER PUBLIC LAW 480. 
Section 104(b)(1) of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1704(bXl)) is amended by inserting 
"(including wood and processed wood products of the United States)" 
after "agricultural commodities" the first place it appears. 
SEC. 4402. DEVELOPING MARKETS FOR WOOD AND WOOD PRODUCTS 
UNDER 
THE 
SHORT-TERM 
AND 
INTERMEDIATE-TERM 
EXPORT CREDIT GUARANTEE PROGRAMS. 
(a) SHORT-TERM EXPORT CREDIT GUARANTEES.—Section 1125 of the 
Food Security Act of 1985 (7 U.S.C. 1736t) is amended— 
(1) in subsection Qo), by inserting ", including wood and proc-
essed wood products" after "agricultural commodities and the 
products4;hereof'; and 
(2) by adding at the end thereof the following: 
"(d) For the purpose of this section, the term 'wood and processed 
wood products' includes but is not limited to logs, lumber (boards, 
timber, millwork, molding, flooring, and siding), veneer, panel prod-
ucts (plywood, particle board, and fiberboard), utility and telephone 
poles, other poles and posts, railroad ties, wood pulp, and wood 
chips.". 
(b) INTERMEDIATE-TERM EXPORT CREDIT.—Section 4(bXl) of 
the 
Food for Peace Act of 1966 (7 U.S.C. 1707a(bXl)) is amended by 
adding at the end thereof the following: "For the purpose of this 
paragraph, the term 'gigricultural commodities' includes wood and 
processed wood products, as defined in section 1125(d) of the Food 
Security Act of 1985 (7 U.S.C. 1736t(d)).". 
SEC. 4403. COOPERATIVE NATIONAL FOREST PRODUCTS MARKETING 
PROGRAM. 
The Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2101 et 
seq.) is amended by adding at the end thereof the following: 
16 use 2112. 
"SEC. 15. COOPERATIVE NATIONAL FOREST PRODUCTS MARKETING 
PRbGRAM. 
"(a) FINDINGS AND PURPOSES.— 
"(1) FINDINGS.—Congress finds that— 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1401 
"(A) the health and vitality of the domestic forest prod-
ucts industry is important to the well-being of the economy 
of the United States; 
"(B) the domestic forest products industry has a signifi-
cant potential for expansion in both domestic and foreign 
markets; 
"(C) many small-sized to medium-sized forest products 
firms lack the tools that would enable them to meet the 
increasing challenge of foreign competition in domestic and 
foreign markets; and 
"(D) a new cooperative forest products marketing pro-
gram will improve the competitiveness of the United States 
forest products industry. 
"(2) PURPOSES.—The purposes of this section are to— 
"(A) provide direct technical assistance to the United 
States forest products industry to improve marketing 
activities; 
"(B) provide cost-share grants to States to support State 
and regional forest products marketing p n ^ a m s ; and 
"(C) target assistance to small-sized and medium-sized 
producers of solid wood and processed wood products, 
including pulp. 
"(b) PROGRAM AUTHORITY.— 
"(1) IN GENERAL.—The Secretary shall establish a cooperative 
national forest products marketing program under this Act that 
provides— 
"(A) technical assistance to States, landowners, and 
small-sized to medium-sized forest products firms on ways 
to improve domestic and foreign markets for forest prod-
ucts; and 
"(B) grants of financial assistance with matching require-
ments to the States to assist in State and regional forest 
products marketing efforts targeted to aid small-sized to 
medium-sized 
forest 
products 
firms 
and 
private, 
nonindustrial forest landowners. 
"(2) 
INTERSTATE COOPERATIVE AGREEMENTS.—Grant agree-
ments shall encourage the establishment of interstate coopera-
tive agreements by the States for the purpose of promoting 
the development of domestic and foreign markets for forest 
products. 
"(c) LIMITATIONS.— 
"(1) COOPERATION WITH OTHER FEDERAL AGENCIES.—In carry-
ing out this section, the Secretary shall cooperate with Federal 
departments and agencies to avoid the dupUcation of efibrts and 
to increase program efficiency. 
"(2) DOMESTIC PROGRAM.—The program authorized under this 
section shall be carried out within the United States and not be 
extended to Department of Agriculture activities in foreign 
countries. 
"(d) AUTHORIZATION FOR APPROPRIATIONS.—^There are authorized 
to be appropriated $5,000,000 for each of the fiscal years 1988 
through 1991, to carry out this section. 
"(e) PROGRAM REPORT.—The Secretary shall report to (Congress 
annually on the activities taken under the marketing program 
established under this section. A final report including rec-
ommendations for program changes and the need and desirability of 
Grants. 
State and local 
governments. 
Grants. 
State and local 
governments. 
102 STAT. 1402 
PUBLIC LAW 100-418—AUG. 23, 1988 
the reauthorization of this authority, and required levels of funding, 
shall be submitted to Congress not later than September 30, 1990.". 
7 u s e 1736t 
SEC. 4404. USE OF DEPARTMENT OF AGRICULTURE PROGRAMS. 
The Secretary of Agriculture shall actively use Department of 
Agriculture concessional programs and export credit guarantee pro-
grams to promote the export of wood and processed wood products. 
Subtitle E—Studies and Reports 
SEC. 4501. STUDY OF CANADIAN WHEAT IMPORT LICENSING REQUIRE-
MENTS. 
(a) FINDINGS.—Congress finds that— 
(1) Canadian importers of wheat or products containing a 
minimum of 25 percent wheat (except packaged wheat products 
for retail sale) from the United States must obtain import 
licenses from the Canadian Wheat Board; 
(2) the Canadian Wheat Board requires such importers of 
United States wheat and wheat products to prove that the 
wheat or wheat products to be imported are not readily avail-
able in Canada before issuance of an import license, and there-
fore, for all practical purposes, such licenses are not granted by 
the Canadian Wheat Board; 
(3) the licensing requirements of the Canadian Wheat Board's 
import licensing program result in a trade barrier on the 
importation of United States wheat and wheat products; and 
(4) Canada is a member of the General Agreement on Tariffs 
and Trade and, under such agreement, member countries 
should, in general, eliminate import licensing programs that 
operate as nontariff trade barriers. 
0)) STUDY.—The Secretary of Agriculture shall conduct a study of 
the Canadian Wheat Board's import licensing program to— 
(1) assess the effect of the Canadian Wheat Board's import 
licensing program referred to in subsection (a) on wheat pro-
ducers, processors, and exporters in the United States; and 
(2) determine— 
(A) the nature and extent of the licensing requirements of 
the Canadian Wheat Board's import licensing program; and 
(B) the estimated effect of the Canadian Wheat Board's 
import licensing program in reducing exports of United 
States wheat and wheat products to Canada. 
(c) SUBMISSION OF RESULTS.—Not later than 90 days after the date 
of enactment of this Act, the Secretary shall submit the results of 
the study conducted under subsection (b) to the United States Trade 
Representative. 
(d) CONSULTATION WITH CONGRESS.—Not later than 90 days after 
the results of the study are submitted, the Secretary and the United 
States Trade Representative shall consult with the Committee on 
Agriculture and the Committee on Ways and Means of the House of 
Representatives and the Committee on Agriculture, Nutrition, and 
Forestry and the Committee on Finance of the Senate on the status 
of efforts to negotiate the elimination of such Canadian licensing 
requirements. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1403 
SEC. 4502. IMPORT INVENTORY. 
7 USC 626. 
(a) COMPILATION AND REPORT ON IMPORTS.—The Secretary of 
Agriculture, in consultation with the Secretary of Commerce, the 
International Trade Commission, the United States Trade Rep-
resentative, and the heads of all other appropriate Federal agencies, 
shall compile and report to the public statistics on the total value 
and quantity of imported raw and processed agricultural products. 
The report shall be limited to those statistics that such agencies 
already obtain for other purposes. 
(b) COMPILATION AND REPORT ON CONSUMPTION.—The Secretary 
Public 
shall compile and report to the public data on the total quantity of information. 
production and consumption of domestically produced raw and proc-
essed agricultural products. 
(c) ISSUING OF DATA.—The reports required by this section shall be 
made in a format that correlates statistics for the quantity and 
value of imported agricultural products to the production and 
consumption of domestic agricultural products. The Secretary shall 
issue such reports on an annual basis, with the first report required 
not later than 1 year after the date of enactment of this Act. 
SEC. 4503. STUDY RELATING TO HONEY. 
(a) STUDY.—The Secretary of Agriculture shall conduct a study to 
determine the effect of imported honey on United States honey 
producers, the availability of honey bee pollination within the 
United States, and whether there is reason to believe imports of 
honey tend to interfere with or render ineffective the honey price 
support program of the Department of Agriculture. 
(b) REPORT.—Not later than 90 days after the date of the enact-
ment of this Act, the Secretary shall report the results of such study 
to the Committee on Agriculture and the Committee on Ways and 
Means of the House of Representatives and to the Committee on 
Agriculture, Nutrition, and Forestry and the Committee on Finance 
of the Senate. 
SEC. 4504. STUDY OF DAIRY IMPORT QUOTAS. 
(a) STUDY.—Not later than 180 days after the date of enactment of 
this Act, the Secretary of Agriculture shall conduct a study to 
determine whether, and to what extent, the price support program 
for milk established under Section 201(d) of the Agricultural Act of 
1949 (7 U.S.C. 1446(d)) would be affected by a reduction in, or 
elimination of, limitations imposed on the importation of certain 
dairy products under section 22 of the Agricultural Adjustment Act 
(7 U.S.C. 624), reenacted with amendments by the Agricultural 
Marketing Agreement Act of 1937, £is a result of multilateral trade 
negotiations, including negotiations under the General Agreement 
on Tariffs and Trade. In conducting this study, the Secretary shall 
assess the likelihood of other nations' agreeing to reduce or elimi-
nate their domestic dairy price stabilization, export subsidization, or 
import control programs in such multilateral negotiations. 
(b) REPORT.—The Secretary shall submit a report describing the 
results of the study, together with any recommendations, to the 
Committee on Agriculture and the Committee on Ways and Means 
of the House of Representatives, and the Committee on Agriculture, 
Nutrition, and Forestry and the Committee on Finance of the 
Senate. 
102 STAT. 1404 
PUBLIC LAW 100-418—AUG. 23, 1988 
Marketing. 
Animals. 
21 use 1401 
note. 
Pests and 
pesticides. 
Drugs and drug 
abuse. 
Pests and 
pesticides. 
Drugs and drug 
abuse. 
SEC. 4505. REPORT ON INTERMEDIATE EXPORT CREDIT. 
Not later than 180 davs after the date of the enactment of this 
Act, the Secretary of Agriculture shall submit a report to the 
Committee on Agriculture and the Committee on Foreign Affairs of 
the House of Representatives and the Committee on Agriculture, 
Nutrition, and Forestiy of the Senate, on the use of authorities 
established under section 4 of the Food for Peace Act of 1966 (7 
U.S.C. 1707a), the Agricultural Trade Development and Assistance 
Act of 1954 (7 U.S.C. 1691 et seq.), section 416 of the Agricultural Act 
of 1949 (7 U.S.C. 1431), and the Commodity Credit Corporation 
Charter Act (15 U.S.C. 714 et seq.), to provide intermediate credit 
financing and other trade assistance for the establishment of facili-
ties in importing countries— 
(1) to improve the handling, marketing, processing, storage, 
and distribution of imported agricultural commodities and 
products; 
(2) to increase livestock production in order to enhance the 
demand for United States feed grains; and 
(3) to increase markets for United States livestock and live-
stock products. 
SEC. 4506. IMPORTED MEAT, POULTRY PRODUCTS, EGGS, AND EGG 
PRODUCTS. 
(a) REPORT.—Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of Agriculture shall submit a report 
to Congress— 
(1) specifjring the planned distribution, in fiscal years 1988 
and 1989, of the resources of the Department of Agriculture 
available for sampling imported covered products to ensure 
compliance with the requirements of the Federal Meat Insi)ec-
tion Act (21 U.S.C. 601 et seq.), the Poultry Products Inspection 
Act (21 U.S.C. 451 et seq.), and the Egg Products Inspection Act 
(21 U.S.C. 1031 et seq.) that govern the level of residues of 
pesticides, drugs, and other products permitted in or on such 
products; 
(2) describing current methods used by the Secretary to en-
force the requirements of such Acts with respect to the level of 
residues of pesticides, drugs, and other products permitted in or 
on such products; 
(3) responding to the audit report of the Inspector General of 
the Department of Agriculture, Number 38002—2—hy, dated 
January 14,1987; 
(4) providing a summary with respect to the importation of 
covered products during fiscal years 1987 and 1988 that 
specifies— 
(A) the number of samples of each such product taken 
during each such fiscal year in carr3ring out the require-
ments described in paragraph (1); and 
(B) for each violation of such requirements during each 
such fiscal year— 
(i) the covered products with respect to which such 
violation occurred; 
(ii) the residue in or on such product in violation of 
such requirements; 
(iii) the country exporting such product; 
(iv) the actions taken in response to such violation 
and the reasons for such actions; and 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1405 
(v) the level of testing conducted by the countries 
exporting such products; 
(5) describing any research conducted by the Secretary to 
Research and 
develop improved methods to detect residues subject to such 
development. 
requirements in or on covered products; £ind 
(6) providing any recommendations the Secretary considers 
appropriate for legislation to add or modify penalties for viola-
tions of laws, regulations, and other enforcement requirements 
governing the level of residues that are permitted in or on 
imported covered products. 
(b) REVISION.—Not later than November 15,1989, the Secretary of 
Reports. 
Agriculture shall revise, as necessary, the report prepared under 
subsection (a) and submit the revision to Congress. 
(c) DEFINITION.—As used in this section, the term "covered prod-
ucts" means meat, poultry products, eggs, and egg products. 
SEC. 4507. STUDY OF CIRCUMVENTION OF AGRICULTURAL QUOTAS. 
(a) IN GENERAL.—Not later than 180 days after the date of enact-
ment of this Act, the Comptroller General of the United States shall 
conduct a study with respect to— 
(1) whether articles containing dairy products (including 
Dairy products. 
chocolate in blocks of at least 10 pounds and other such prod-
ucts) are being imported into the United States in such a 
manner or in such quantities as to circumvent or avoid the 
limitations imposed on imports of dairy products under section 
22 of the Agricultural Adjustment Act (7 U.S.C. 624), reenacted 
with amendments by the Agricultural Marketing Agreement 
Act of 1937; and 
(2) whether products containing refined sugar are being im-
ported into the United States in such a manner or in such 
quantities as to circumvent or avoid the limitations imposed on 
imports of refined sugar and sugar containing products imposed 
under Federal law. 
(b) REQUIREMENTS.—In conducting the study required under 
subsection (a), the Comptroller General shall investigate— 
(1) the efforts undertaken by the United States Customs 
Service in the enforcement of the existing quantitative limita-
tions described in subsection (a); 
(2) the change in the composition, volume, and pattern of 
Dairy products. 
imports containing sugar and imports containing dairy prod-
ucts subsequent to the initial imposition of the quantitative 
limitations; 
(3) the effectiveness of section 22 of the Agricultural Adjust-
ment Act (7 U.S.C. 624), reenacted with amendments by the 
Agricultural Marketing Agreement Act of 1937, in preventing 
the circumvention or avoidance of the quantitative limitations; 
and 
(4) the use of United States foreign trade zones to circumvent 
the quantitative limitations. 
(c) REPORT.—On completion of the study required by this section, 
the Comptroller General shall report the results of the study to the 
Committee on Agriculture and the Committee on Ways and Means 
of the House of Representatives, and the Committee on Agriculture, 
Nutrition, and Forestry and the Committee on Finance of the 
Senate. 
102 STAT. 1406 
PUBLIC LAW 100-418—AUG. 23, 1988 
SEC. 4508. STUDY OF LAMB MEAT IMPORTS. 
(a) STUDY.—The Secretary of Agriculture shall conduct a study of 
the market for lamb meat products in the United States, focusing on 
production, demand, rate of return on investment, marketing and 
trends with respect to the level of imports of live lamb and lamb 
meat products, and the effects of such imports on the production of 
lamb meat in the United States. 
O
b
) REPORT.—Not later than 180 days after the date of enactment 
of this Act, the Secretary shall submit to the Committee on Ways 
and Means and the Committee on Agriculture of the House of 
Representatives and the Committee on Finance and the Committee 
on Agriculture, Nutrition, and Forestry of the Senate a report 
setting forth the results of such study. If appropriate, the report 
should include proposals on ways to bring about a long-term in-
crease in per capita consumption of lamb meat products and ways to 
encourage a more profitable and productive domestic industry to 
ensure a plentiful and affordable supply of lamb meat. 
SEC. 4509. ROSE STUDY. 
(a) STUDY.—Not later than 240 days after the date of enactment of 
this Act, the United States International Trade Commission shall, 
pursuant to section 332 of the Tariff Act of 1930 (19 U.S.C. 1332), 
complete a study with respect to— 
(1) competitive factors affecting the domestic rose-growing 
industry, including competition from imports; 
(2) the effect that the European Community's tariff rate for 
imported roses has on world trade of roses; and 
(3) the extent to which unfair trade practices and foreign 
barriers to trade are impeding the marketing abroad of domesti-
cally produced roses. 
(b) REPORT.—The Commission shall report the results of the study 
conducted in accordance with subsection (a) as soon as the study is 
completed to— 
(1) the Committee on Agriculture and the Committee on Ways 
and Means of the House of Representatives; 
(2) the Committee on Agriculture, Nutrition, and Forestry 
and the Committee on Finance of the Senate; 
(3) the United States Trade Representative; 
(4) the Secretary of Commerce; and 
(5) the Secretary of Agriculture. 
(c) REVIEW.—It is the sense of Congress that the United States 
Trade Representative, the Secretary of Commerce, and the Sec-
retary of Agriculture, should use all available remedies, programs, 
and policies within their respective jurisdictions to eissist the domes-
tic rose industry to maintain and enhance its ability to compete in 
the domestic and world market for roses if, after their review of the 
study and report required by this section, such officials determine 
that such action is appropriate to counter any adverse effects on the 
domestic rose industry caused by unfair trade practices of foreign 
competitors. 
PUBLIC LAW 100-418—AUG. 23, 1988 
Subtitle F—Miscellaneous Agricultural 
Provisions 
102 STAT. 1407 
SEC. 4601. ALLOCATION OF CERTAIN MILK. 
Section 8c(5) of the Agricultural Adjustment Act (7 U.S.C. 608c(5)), 
reenacted with amendments by the Agricultural Marketing Agree-
ment Act of 1937, is amended by adding at the end the following: 
"(KXi) Notwithstanding any other provision of law, milk produced 
by dairies— 
"(I) owned or controlled by foreign persons; and 
"(II) financed by or with the use of bonds the interest on Securities. 
which is exempt from Federal income tax under section 103 of Taxes. 
the Internal Revenue Code of 1986; 
shall be treated as other-source milk, and shall be allocated as milk 
received from producer-handlers for the purposes of classifying 
producer milk, under the milk marketing program established 
under this Act. For the purposes of this subparagraph, the term 
'foreign person' has the meaning given such term under section 9(3) 
of the Agricultural Foreign Investment Disclosure Act of 1978 
(7 U.S.C. 3508(3)). 
"(ii) The Secretary of Agriculture shall prescribe regulations to Regulations. 
carry out this subparagraph. 
"(iii) This subparagraph shall not apply with respect to any dairy 
that began operation before May 6,1986.'. 
SEC. 4602. PAID ADVERTISING FOR FLORIDA-GROWN STRAWBERRIES 
UNDER MARKETNG ORDERS. 
The first proviso of section 8c(6)(I) of the Agricultural Adjustment 
Act (7 U.S.C. 608c(6)(D), reenacted with amendments by the Agricul-
tural Marketing Agreement Act of 1937, is amended by striking out 
"or tomatoes" and inserting in lieu thereof "tomatoes, or Florida-
grown strawberries,". 
SEC. 4603. APPLICATION OF MARKETNG ORDERS TO IMPORTS. 
Section 8e of the Agricultural Adjustment Act (7 U.S.C. 608e-l), 
reenacted with amendments by the Agricultural Marketing Agree-
ment Act of 1937, is amended— 
(1) by inserting "(a)" at the beginning of the first sentence; 
and 
(2) by adding at the end thereof the following new subsection: 
"(bXl) The Secretary may provide for a period of time (not to 
exceed 35 days) in addition to the period of time covered by a 
marketing order during which the marketing order requirements 
would be in effect for a particular commodity during any year if the 
Secretary determines that such additional period of time is 
necessary— 
"(A) to effectuate the purposes of this Act; and 
"(B) to prevent the circumvention of the grade, size, quality, 
or maturity standards of a seasonal marketing order applicable 
to a commodity produced in the United States by imports of 
such commodity. 
"(2) In making the determination required by paragraph (1), the 
Secretary, through notice and comment procedures, shall consider— 
"(A) to what extent, during the previous year, imports of a 
|
H 
commodity that did not meet the requirements of a marketing 
102 STAT. 1408 
PUBLIC LAW 100-418—AUG. 23, 1988 
order applicable to such commodity were marketed in the 
United States during the period that such marketing order 
requirements were in effect for available domestic commodities 
(or would have been marketed during such time if not for any 
additional period established by the Secretary): 
"(B) if the importation into the United States of such 
commodity did, or was likely to, circumvent the grade, size, 
quality or maturity standards of a seasonal marketing order 
applicable to such commodity produced in the United States; 
and 
"(C) the availability and price of commodities of the variety 
covered by the marketing order during any additional period 
the marketing order requirements are to be in effect. 
"(3) An additional period established by the Secretary in accord-
ance with this subsection shall be— 
"(A) announced not later than 30 days before the date such 
additional period is to be in effect; and 
"(B) reviewed by the Secretary on request, through notice and 
comment procedures, at least every 3 years in order to deter-
mine if the additional period is still needed to prevent cir-
cumvention of the seasonal marketing order by imported 
commodities. 
"(4) For the purposes of carrying out this subsection, the Secretary 
is authorized to make such reasonable inspections as may be 
necessary.". 
SEC. 4604. RECIPROCAL MEAT INSPECTION REQUIREMENT. 
(a) IN GENERAL.—Section 20 of the Federal Meat Inspection Act 
(21 U.S.C. 620) is amended by adding at the end thereof the following 
new subsection: 
"(h)(1) As used in this subsection: 
"(A) The term 'meat articles' means carcasses, meat and meat 
food products of cattle, sheep, swine, goats, horses, mules, or 
other equines, that are capable of use as human food. 
"(B) The term 
'standards* means inspection, 
building 
construction, sanitary, quality, species verification, residue, and 
other standards that are applicable to meat articles. 
Safety. 
"(2) On request of the Committee on Agriculture or the Committee 
on Ways and Means of the House of Representatives or the Commit-
tee on Agriculture, Nutrition, and Forestry or the Committee on 
Finance of the Senate, or at the initiative of the Secretary, the 
Secretary shall, as soon as practicable, determine whether a particu-
lar foreign country applies standards for the importation of meat 
articles from the United States that are not related to public health 
concerns about end-product quality that can be substantiated by 
reliable analj^ical methods. 
"(3) If the Secretary determines that a foreign country applies 
standards described in paragraph (2)— 
"(A) the Secretary shall consult with the United States Trade 
Representative; and 
"(B) within 30 days after the determination of the Secretary 
under paragraph (2), the Secretary and the United States Trade 
Representative shall recommend to the President whether 
action should be taken under paragraph (4). 
President of U.S. 
"(4) Within 30 days after receiving a recommendation for action 
under paragraph (3), the President shall, if and for such time as the 
President considers appropriate, prohibit imports into the United 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1409 
States of any meat articles produced in such foreign country unless 
it is determined that the meat articles produced in that country 
meet the standards applicable to meat articles in commerce within 
the United States. 
"(5) The action authorized under paragraph (4) may be used 
instead of, or in addition to, any other action taken under any other 
law.". 
(b) REPORTS.—Section 20(e) of such Act is amended— 
21 use 620. 
(1) by striking out "and" at the end of paragraph (4); 
(2) by striking out the period at the end of paragraph (5) and 
inserting in lieu thereof "; and"; and 
(3) by adding at the end thereof the following new paragraph: 
"(6) the name of each foreign country that applies standards 
for the importation of meat articles from the United States that 
are described in subsection (h)(2).". 
SEC. 4605. STUDY OF INTERNATIONAL MARKETING IN LAND GRANT 
COLLEGES AND UNIVERSITIES. 
It is the sense of Congress that— 
(1) land grant colleges and universities (as defined in section 
1404(10) of the National Agricultural Research, Extension, and 
Teaching Policy Act of 1977 (7 U.S.C. 3103(10)) should encourage 
the study and career objective of international marketing of 
agricultural commodities and products; 
(2) because marketing complements production, international 
agricultural marketing specialists are needed in a globally 
competitive world; and 
(3) enhanced foreign marketing of United States agricultural 
commodities and products will help relieve stress in the rural 
economy. 
SEC. 4606. INTERNATIONAL TRADE IN EGGS AND EGG PRODUCTS. 
(a) FINDINGS.—Congress finds that— 
(1) the system of basic and variable levies of the European 
Community has severely restricted the export of United 
States eggs and egg products to European 
Community 
member countries; 
(2) export subsidies of the Europesm Community have caused 
displacement of United States egg exports in international mar-
kete; and 
(3) the Secretary of Agriculture is in the process of certifying 
the Netherland's inspection procedures for egg products for the 
purpose of importation into the United States of egg products of 
the Netherlands. 
Ot)) SENSE OF CONGRESS.—It is the sense of Congress that the 
United States Trade Representative should enter into negotiations 
with the European Community concerning— 
(1) duties, tariffs, and other means used by the European 
Community to limit the access of United States eggs and egg 
products to European Community markets; and 
(2) European Community export subsidies that have had the 
effect of excluding United States eggs and egg products from 
other world markets. 
SEC. 4607. UNITED STATES ACCESS TO THE KOREAN BEEF MARKET. 
(a) FINDINGS.—Congress finds that— 
102 STAT. 1410 
PUBLIC LAW 100-418—AUG. 23, 1988 
(1) the 1986 United States trade deficit with the Republic of 
Korea was $7,600,000,000; 
(2) the Republic of Korea has banned beef imports since May 
1985; 
(3) this beef import ban is in contravention of Korea's obliga-
tions under the General Agreement on Tariffs and Trade and 
impairs United States rights under such agreement; 
(4) Korea imposes an unreasonably high 20 percent ad valo-
rem tariff on meat products; and 
(5) if the Korean beef market were liberalized, the United 
States, due to comparative advantage, could supply a significant 
portion of the Korean market for beef, thereby increasing profit 
opportunities for the United States beef industry while benefit-
ing Korean consumers. 
Qy) SENSE OP CONGRESS.—It is the sense of Congress that— 
(1) the Republic of Korea should take immediate action to 
fulfill its obligations under the General Agreement on Tariffs 
and Trade and permit access to its market for United States 
beef; 
(2) the United States should aggressively pursue negotiations 
to gain access to the Korean market for United States beef; 
(3) such n^otiations, in addition to elimination of the beef 
import ban, should address the high tariffs set by the Republic 
of Korea and the means by which imported beef is distributed in 
Korea; and 
(4) if the Republic of Korea does not show clear evidence that 
it is engaging in meaningfid liberalization of its market for 
United States beef, the United States should use all available 
and appropriate means to encourage the Republic of Korea to 
open its market to United States beef imports. 
SEC. 4608. UNITED STATES ACCESS TO JAPANESE AGRICULTURAL 
MARKETS. 
(a) FINDINGS.—Congress finds that— 
(1) the United States requested establishment of a panel 
pursuant to Article XXIQ of the General Agreement on Tariffs 
and Trade (hereinafter in this section referred to as "GATT") to 
examine Japanese import restrictions on 12 categories of agri-
cultural products; 
(2) the GATT panel found that Japanese quantitative restric-
tions on 10 of the 12 product cat^ories are inconsistent with 
Article XI of the GATT and recommended that Japan eliminate 
them or otherwise take action to bring them into conformity 
with the GATT; and 
(3) the rationale behind the GATT panel findiiig can also be 
applied to other restrictions that Japan maintains on imports 
from the United States, including— 
(A) a virtual ban on imports of United States rice; 
(B) a very restrictive quota on imports of United States 
beef; and 
(Q high tariffs and restrictive quotas on imports of 
United States citrus. 
(b) SENSE OF CONGBESS.—It is the sense of Congress that— 
(1) the Government of Japan should immediately take actions 
to comply with the findings of the GATT panel report; 
(2) the Government of Japan should immediately liberalize its 
trade policies by lowering high tariffs and removing quotas on 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1411 
agricultural imports from the United States, including those 
imposed on rice, beef, and citrus, in order to avoid any damage 
to the close relations between Japan and the United States; and 
(3) the United States should continue efforts to persuade the 
Government of Japan to rehiove its trade barriers. 
SEC. 4609. SENSE OF CONGRESS RELATING TO SECTION 22. 
It is the sense of Congress that— 
(1) the amounts of assessments collected under the no-net-cost 
tobacco program can be an indicator of import injury and 
material interference with the tobacco price support program 
administered by the Secretary of Agriculture; and 
(2) for purposes of any investigation conducted under section 
22(a) of the Agricultural Adjustment Act (7 U.S.C. 624(a)), re-
enacted with amendments by the Agricultural Marketing 
Agreement Act of 1937, with respect to tobacco, or articles 
containing tobacco, imported into the United States, the Inter-
national Trade Commission should take into account, as if they 
are costs to the Federal government, contributions and assess-
ments imposed under sections 106A and 106B of the Agricul-
tural Act of 1949 (7 U.S.C. 1445-1 and 1445-2) in determining 
whether such imported tobacco or articles containing tobacco 
materially interfere with the tobacco price support program 
carried out by the Secretary o^ Agriculture. 
SEC. 4610. TECHNICAL CORRECTIONS TO THE AGRICULTURAL AID AND 
TRADE MISSION PORTION OF PUBLIC LAW 100-202. 
(a) SHORT TITLE FOR AGRICULTURAL AID AND TRADE MISSIONS 
ACT.—That portion of the joint resolution entitled "Joint resolution 
making further continuing appropriations for the fiscal year 1988, 
and for other purposes" approved December 22, 1987, under the 
heading "Agricultural Aid and Trade Missions Act" is amended by 
adding at the end the following: 
"SEC. 16. SHORT TITLE. 
"Section 1 through this section under the heading 'Agricultural 
Aid and Trade Missions Act' may be cited as the 'Agricultural Aid 
and Trade Missions Act'." . 
(b) CORRECTION OF INTERNAL REFERENCES.—Sections 1 through 7 of 
that portion of such joint resolution are each amended by striking 
out ' chapter" each place it appears and inserting "Act" in lieu 
thereof. 
(c) EuMiNATiON OF SUPERFLUOUS CATCHUNE.—That portion of 
such joint resolution is amended by striking out "Subtitle E—Public 
Law 480 and Related Provisions". 
(d) CORRECTION OF CROSS REFERENCE.—Section 13 of that portion of 
such joint resolution is sunended by striking out "section 655 of this 
Act" and inserting "section 12" in lieu thereof. 
7 use 624 note. 
Agricultural Aid 
and Trade 
Missions Act. 
7 use 1691 note. 
7 use 1736bb, 
1736bb-3— 
1736bb-6. 
101 Stat. 
1329-447. 
7 use 1726. 
3, . 
Subtitle G—Pesticide Monitoring 
Improvements 
SEC. 4701. SHORT TITLE. 
This subtitle may be cited as the "Pesticide Monitoring Improve-
ments Act of 1988". 
Pesticide 
Monitoring 
Improvements 
Act of 1988. 
21 use 1401 
note. 
102 STAT. 1412 
PUBLIC LAW 100-418—AUG. 23, 1988 
21 use 1401. 
SEC. 4702. PESTICIDE MONITORING AND ENFORCEMENT INFORMATION. 
(a) DATA MANAGEMENT SYSTEMS.— 
(1) Not later than 480 days after the date of the enactment of 
this Act, the Secretary of Health and Human Services shall 
place in effect computerized data management systems for the 
Food and Drug Administration under which the Administration 
will— 
(A) record, summarize, and evaluate the results of its 
program for monitoring food products for pesticide residues, 
(B) identify gaps in its pesticide monitoring program in 
the monitoring of (i) pesticides, (ii) food products, and (iii) 
food from specific countries and from domestic sources. 
Safety. 
(C) detect trends in the presence of pesticide residues in 
food products and identify public health problems emerging 
from the occurrence of pesticide residues in food products, 
(D) focus its testing resources for monitoring pesticide 
residues in food on detecting those residues which pose a 
public health concern, 
(E) prepare summaries of the information listed in 
subsection (b), and 
(F) provide information to assist the Environmental 
Protection Agency in carrying out its responsibilities under 
the Federal Insecticide, Fungicide, and Rodenticide Act and 
the Federal Food, Drug, and Cosmetic Act. 
(2) As soon as practicable, the Secretary of Health and 
Human Services shall develop a means to enable the computer-
ized data management systems placed into effect under para-
graph (1) to make the summary described in subsection (c). 
(3XA) Paragraph (1) does not limit the authority of the Food 
and Drug Administration to— 
(i) use the computerized data management systems placed 
in effect under paragraph (1), or 
(ii) develop additional data management systems, 
to facilitate the regulation of any substance or product covered 
under the requirements of the Federal Food, Drug, and Cos-
metic Act. 
(B) In placing into effect the computerized data management 
systems under paragraph (1) and in carr3dng out paragraph (2), 
the Secretary shall comply with applicable regulations govern-
ing computer system design and procurement. 
Safety. 
0)) INFORMATION.—The Food and Drug Administration shall use 
the computerized data management systems placed into effect under 
subsection (aXD to prepare a summary of— 
(1) information on— 
(A) the types of imported and domestically produced food 
products analyzed for compliance with the requirements of 
the Federal Food, Drug, and Cosmetic Act regarding the 
presence of pesticide residues, 
'
;
«
> : 
(B) the number of samples of each such food product 
\l '"• .: 
analyzed for such compliance by country of origin, 
(C) the pesticide residues which may be detected using 
the testing methods employed, 
(D) the pesticide residues in such food detected and the 
•:-• ^
. >' levels detected, 
cvs^^x «.tj cij f-
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1413 
(E) the compliance status of each sample of such food 
tested and the violation rate for each country-product com-
bination, and 
(F) the action taken with respect to each sample of such 
food found to be in violation of the Federal Food, Drug, and 
Cosmetic Act and its ultimate disposition, and 
(2) information on— 
(A) the country of origin of each imported food product 
referred to in paragraph (IXA), and 
(B) the United States district of entry for each such 
imported food product. 
(c) VOLUME DATA.—The Food and Drug Administration shall use 
the computerized data management systems placed into effect under 
subsection (aXD to summarize the volume of each tjTpe of food 
product subject to the requirements of the Federal Food, Drug, and 
Cosmetic Act which is imported into the United States and which 
has an entry value which exceeds an amount established by the 
Secretary of Health and Human Services. The summary shall be 
made by country of origin and district of entry. Information with 
respect to volumes of food products to be included in the summary 
shall, to the extent feasible, be obtained from data bases of other 
Federal agencies. 
(d) COMPILATION.—Not later than 90 days after the expiration of 1 
year after the data management systems are placed into effect 
under subsection (a) and annually thereafter, the Secretary of 
Health and Human Services shall compile a summary of the 
information described in subsection (b) with respect to the previous 
year. When the Food and Drug Administration is able to make 
summaries under subsection (c), the Secretary shall include in the 
compilation under the preceding sentence a compilation of the 
information described in subsection (c). Compilations under this 
subsection shall be made available to Federal and State agencies 
and other interested persons. 
SEC. 4703. FOREIGN PESTICIDE INFORMATION. 
21 USC 1402. 
(a) COOPERATIVE AGREEMENTS.—The Secretary of Health and 
Human Services shall enter into cooperative agreements with the 
governments of the countries which are the major sources of food 
imports into the United States subject to pesticide residue monitor-
ing by the Food and Drug Administration for the purpose of improv-
ing the ability of the Food and Drug Administration to sissure 
compliance with the pesticide tolerance requirements of the Federal 
Food, Drug, and Cosmetic Act with regard to imported food. 
0)) INFORMATION ACTIVITIES.— 
(1) The cooperative agreements entered into under subsection 
(a) with governments of foreign countries shall specify the 
action to be taken by the parties to the agreements to accom-
plish the purpose described in subsection (a), including the 
means by which the governments of the foreign countries will 
provide to the Secretary of Health and Human Services current 
information identifying each of the pesticides used in the 
production, transportation, and storage of food products im-
ported from production regions of such countries into the 
United States. 
(2) In the case of a foreign country with which the Secretary is 
unable to enter into an agreement under subsection (a) or for 
which the information provided under paragraph (1) is insuffi-
102 STAT. 1414 
PUBLIC LAW 100-418—AUG. 23, 1988 
State and local 
governments. 
21 use 1403. 
Reports. 
cient to assure an effective pesticide monitoring program, the 
Secretary shall, to the extent practicable, obtain the informa-
tion described in paragraph (1) with respect to such country 
from other Federal or international agencies or private sources. 
(3) The Secretary of Health and Human Services shall assure 
that appropriate offices of the Food and Drug Administration 
which are engaged in the monitoring of imported food for 
pesticide residues receive the information obtained under para-
graph (1) or (2). 
(4) The Secretary of Health and Human Services shall make 
available any information obtained under paragraph (1) or (2) to 
State agencies engaged in the monitoring of imported food for 
pesticide residues other than information obtained from private 
sources the disclosure of which to such agencies is restricted. 
(c) COORDINATION WITH OTHER AGENCIES.—The Secretary of 
Health and Human Services shall— 
(1) notify in writing the Department of Agriculture, the 
Environmental Protection Agency, and the Department of State 
at the initiation of negotiations with a foreign country to de-
velop a cooperative agreement under subsection (a); and 
(2) coordinate the activities of the Department of Health and 
Human Services with the activities of those departments and 
agencies, as appropriate, during the course of such negotiations. 
(d) REPORT.—Not later than one year after the date of the enact-
ment of this Act, the Secretary of Health and Human Services shall 
report to the Committee on Agriculture, Nutrition, and Forestry 
and the Committee on Labor and Human Resources of the Senate 
and the House of Representatives on the activities undertaken by 
the Secretary to implement this section. The report shall be made 
available to appropriate Federal and State agencies and to in-
terested persons. 
SEC. 4704. PESTICIDE ANALYTICAL METHODS. 
The Secretary of Health and Human Services shall, in consulta-
tion with the Administrator of the Environmental Protection 
Agency-
C
D develop a detailed long-range plan and timetable for re-
search that is necessary for the development of and validation 
of— 
(A) new and improved anal)^ical methods capable of 
detecting at one time the presence of multiple pesticide 
residues in food, and 
(B) rapid pesticide anal3rtical methods, and 
(2) conduct a review to determine whether the use of rapid 
pesticide analj^ical methods by the Secretary would enable the 
Secretary to improve the cost-effectiveness of monitoring and 
enforcement activities under the Federal Food, Drug, and Cos-
metic Act, including increasing the number of pesticide residues 
which can be detected and the number of tests for pesticide 
residues which can be conducted in a cost-effective manner. 
The Secretary shall report the plan developed under paragraph (1), 
the resources necessary to carry out the research described in such 
paragraph, recommendations for the implementation of such re-
search, and the result of the review conducted under paragraph (2) 
not later than the expiration of 240 days after the date of the 
enactment of this Act to the Committee on Agriculture, Nutrition, 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1415 
and Forestry and the Committee on Labor and Human Resources of 
the Senate and the House of Representatives. 
TITLE V—FOREIGN CORRUPT PRACTICES 
AMENDMENTS; 
INVESTMENT; 
AND 
TECHNOLOGY 
Subtitle A—Foreign Corrupt Practices Act 
Amendments; Review of Certain Acquisitions 
PART I—FOREIGN CORRUPT PRACTICES ACT 
F
o
r
e
i
g
n corrupt 
X rd-cricss A.CL 
AMENDMENTS 
Amendments of 
1988. 
SEC. 5001. SHORT TITLE. 
^^ USC 78a note. 
This part may be cited as the "Foreign Corrupt Practices Act 
Amendments of 1988". 
SEC. 5002. PENALTIES FOR VIOLATIONS OF ACCOUNTING STANDARDS. 
Section 13(b) of the Securities Exchange Act of 1934 (15 U.S.C. 
78m(b)) is amended by adding at the end thereof the following: 
"(4) No criminal liability shall be imposed for failing to comply 
with the requirements of paragraph (2) of this subsection except as 
provided in paragraph (5) of ihis subsection. 
"(5) No person shall knowingly circumvent or knowingly fail to 
implement a system of internal accounting controls or knowingly 
falsify any book, record, or account described in paragraph (2). 
"(6) Where an issuer which has a class of securities registered 
pursuant to section 12 of this title or an issuer which is required to 
file reports pursuant to section 15(d) of this title holds 50 per centum 
or less of the voting power with respect to a domestic or foreign firm, 
the provisions of paragraph (2) require only that the issuer proceed 
in good faith to use its influence, to the extent reasonable under the 
issuer's circumstances, to cause such domestic or foreign firm to 
devise and maintain a system of internal accounting controls 
consistent with paragraph (2). Such circumstances include the rel-
ative degree of the issuer's ownership of the domestic or foreign firm 
and the laws and practices governing the business operations of the 
country in which such firm is located. An issuer which demonstrates 
good faith efforts to use such influence shall be conclusively pre-
sumed to have complied with the requirements of paragraph (2). 
"(7) For the purpose of paragraph (2) of this subsection, the terms 
•reasonable assurances' and 'reasonable detail' mean such level of 
detail and degree of assurance as would satisfy prudent officials in 
the conduct of their own affairs.". 
SEC. 5003. FOREIGN CORRUPT PRACTICES ACT AMENDMENTS. 
(a) PROHIBITED TRADE PRACTICES BY ISSUERS. —Section 30A of the 
Securities Exchange Act of 1934 (15 U.S.C. 78dd-l) is amended to 
read as follows: 
"PROHIBITED FOREIGN TRADE PRACTICES BY ISSUERS 
"SEC. 30A. (a) PROHIBITION.—It shall be unlawful for any issuer Mail. 
which has a class of securities registered pursuant to section 12 of ^^^^ ^^^ 
property. 
102 STAT. 1416 
PUBLIC LAW 100-418—AUG. 23, 1988 
this title or which is required to file reports under section 15(d) of 
this title, or for any officer, director, employee, or Eigent of such 
issuer or any stockholder thereof acting on behalf of such issuer, to 
make use of the mails or any means or instrumentality of interstate 
commerce corruptly in furtherance of an offer, pa3nnent, promise to 
pay, or authorization of the pajonent of any money, or offer, gift, 
promise to give, or authorization of the giving of an5rthing of value 
to— 
"(1) any foreign official for purposes of^ 
"(AXi) influencing any act or decision of such foreign 
official in his official capacity, or (ii) inducing such foreign 
official to do or omit to do any act in violation of the lawful 
duty of such official, or 
"(B) inducing such foreign official to use his influence 
with a foreign government or instrumentality thereof to 
affect or influence any act or decision of such government 
or instrumentality, 
in order to assist such issuer in obtaining or retaining business 
for or with, or directing business to, any person; 
"(2) any foreign political party or official thereof or any 
candidate for foreign political office for purposes of— 
"(AXi) influencing any act or decision of such party, 
official, or candidate in its or his official capacity, or (ii) 
inducing such party, official, or candidate to do or omit to 
do an act in violation of the lawful duty of such party, 
official, or candidate, 
"(B) inducing such party, official, or candidate to use its 
or his influence with a foreign government or instrumental-
ity thereof to affect or influence any act or decision of such 
government or instrumentality, 
in order to assist such issuer in obtaining or retaining business 
for or with, or directing business to, any person; or 
"(3) any person, while knowing that all or a portion of such 
money or thing of value will be offered, given, or promised, 
directly or indirectly, to any foreign official, to any foreign 
political party or official thereof, or to any candidate for foreign 
political office, for purposes of— 
"(A)(i) influencing any act or decision of such foreign 
official, political party, party official, or candidate in his or 
its official capacity, or (ii) inducing such foreign official, 
political party, party official, or candidate to do or omit to 
do any act in violation of the lawful duty of such foreign 
official, political party, party official, or candidate, or 
"(B) inducing such foreign official, political party, party 
official, or candidate to use his or its influence with a 
foreign government or instrumentality thereof to affect or 
influence any act or decision of such government or 
instrumentality, 
in order to assist such issuer in obtaining or retaining business 
for or with, or directing business to, any person. 
"(b) EXCEPTION FOR ROUTINE GOVERNMENTAL ACTION.—Subsection 
(a) shall not apply to any facilitating or expediting payment to a 
foreign official, political party, or party official the purpose of which 
is to expedite or to secure the performance of a routine govern-
mental action by a foreign official, political party, or party official. 
"(c) AFFIRMATIVE DEFENSES.—It shall be an affirmative defense to 
actions under subsection (a) that— 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1417 
"(1) the payment, gift, offer, or promise of anything of value 
that was made, was lawful under the written laws and regula-
tions of the foreign officiars. political party's, party official s, or 
candidate's country; or 
"(2) the pajrment, gift, offer, or promise of anything of value 
that w£is made, was a reasonable and bona fide expenditure, 
such as travel and lodging expenses, incurred by or on behalf of 
a foreign official, party, party official, or candidate and was 
directly related to— 
(A) the promotion, demonstration, or explanation of 
products or services; or 
"(B) the execution or performance of a contract with a 
foreign government or agency thereof. 
"(d) GuiDEUNES B
Y THE ATTORNEY GENERAL.—Not later than one 
year after the date of the enactment of the Foreign Corrupt Prac-
tices Act Amendments of 1988, the Attorney General, after consulta-
tion with the Commission, the Secretary of Commerce, the United 
States Trade Representative, the Secretary of State, and the Sec-
retary of the Treasury, and after obtEiining the views of all in-
terested persons through public notice and comment procedures, 
shall determine to what extent compliance with this section would 
be enhanced and the business community would be assisted by 
further clarification of the preceding provisions of this section and 
may, based on such determination and to the extent necessary and 
appropriate, issue— 
"(1) guidelines describing specific t3T)es of conduct, associated 
Contracts. 
with common types of export sales arrangements and business 
contracts, which for purposes of the Department of Justice's 
present enforcement policy, the Attorney General determines 
would be in conformance with the preceding provisions of this 
section; and 
"(2) general precautionary procedures which issuers may use 
on a voluntary basis to conform their conduct to the Depart-
ment of Justice's present enforcement policy regarding the 
preceding provisions of this section. 
The Attorney General shall issue the guidelines smd procedures 
referred to in the preceding sentence in accordance with the provi-
sions of subchapter II of chapter 5 of title 5, United States (Dode, and 
those guidelines and procedures shall be subject to the provisions of 
chapter 7 of that title. 
"(e) OPINIONS OF THE ATTORNEY GENERAL.—(1) The Attorney Gen-
eral, after consultation with appropriate departments and agencies 
of the United States and after obtaining the views of all interested 
persons through public notice and comment procedures, shall estab-
lish a procedure to provide responses to specific inquiries by issuers 
concerning conformance of their conduct with the Department of 
Justice's present enforcement policy regarding the preceding provi-
sions of this section. The Attorney General shall, within 30 days 
after receiving such a request, issue an opinion in response to that 
request. The opinion shall state whether or not certain specified 
prospective conduct would, for purposes of the Department of Jus-
tice's present enforcement policy, violate the preceding provisions of 
this section. Additional requests for opinions may be filed with the 
Attorney General regarding other specified prospective conduct that 
is beyond the scope of conduct specified in previous requests. In any 
action brought under the applicable provisions of this section, there 
shall be a rebuttable presumption that conduct, which is specified in 
102 STAT. 1418 
PUBLIC LAW 100-418—AUG. 23, 1988 
Courts, U.S. 
Classified 
information. 
a request by an issuer and for which the Attorney General has 
issued an opinion that such conduct is in conformity with the 
Department of Justice's present enforcement policy, is in compli-
ance with the preceding provisions of this section. Such a presump-
tion may be rebutted by a preponderance of the evidence. In 
considering the presumption for purposes of this paragraph, a court 
shall weigh all relevant factors, including but not limited to whether 
the information submitted to the Attorney General was accurate 
and complete and whether it was within the scope of the conduct 
specified in any request received by the Attorney General. The 
Attorney General shall establish the procedure required by this 
paragraph in accordance with the provisions of subchapter II of 
chapter 5 of title 5, United States Code, and that procedure shall be 
subject to the provisions of chapter 7 of that title. 
"(2) Any document or other material which is provided to, re-
ceived by, or prepared in the Department of Justice or any other 
department or agency of the United States in connection with a 
request by an issuer under the procedure established under para-
graph (1), shall be exempt from disclosure under section 552 of title 
5, United States Code, and shall not, except with the consent of the 
issuer, be made publicly available, regardless of whether the Attor-
ney General responds to such a request or the issuer withdraws such 
request before receiving a response. 
"(3) Any issuer who has made a request to the Attorney General 
under paragraph (1) may withdraw such request prior to the time 
the Attorney General issues an opinion in response to such request. 
Any request so withdrawn shall have no force or effect. 
"(4) The Attorney General shall, to the maximum extent prac-
ticable, provide timely guidance concerning the Department of Jus-
tice's present enforcement policy with respect to the preceding 
provisions of this section to potential exporters and small businesses 
that are unable to obtain specialized counsel on issues pertaining to 
such provisions. Such guidance shall be limited to responses to 
requests under paragraph (1) concerning conformity of specified 
prospective conduct with the Department of Justice's present 
enforcement policy regarding the preceding provisions of this sec-
tion and general explanations of compliance responsibilities and of 
potential liabilities under the preceding provisions of this section. 
"(f) DEFINITIONS.—For purposes of this section: 
"(1) The term 'foreign official' means any officer or employee 
of a foreign government or any department, agency, or 
instrumentality thereof, or any person acting in an official 
capacity for or on behalf of any such government or depart-
ment, agency, or instrumentality. 
"(2XA) A person's state of mind is 'knowing* with respect to 
conduct, a circumstance, or a result if— 
"(i) such person is aware that such person is engaging in 
such conduct, that such circumstance exists, or tiiat such 
result is substantially certain to occur; or 
"(ii) such person has a firm belief that such circumstance 
exists or that such result is substantially certain to occur. 
"(B) When knowledge of the existence of a particular cir-
cumstance is required for an offense, such knowledge is estab-
lished if a person is aware of a high probability of the existence 
of such circumstance, unless the person actually believes that 
such circumstance does not exist. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1419 
"(3XA) The term 'routine governmental action' means only an 
action which is ordinarily and commonly performed by a foreign 
official in— 
"(i) obtaining permits, licenses, or other official docu-
ments to qualify a person to do business in a foreign 
country; 
"(ii) processing governmental papers, such as visas and 
work orders; 
"(iii) providing police protection, mail pick-up and deliv-
ery, or scheduling inspections associated with contract 
performance or inspections related to transit of goods 
across country; 
"(iv) providing phone service, power and water supply, 
loading and unloading cargo, or protecting perishable prod-
ucts or commodities from deterioration; or 
"(v) actions of a similar nature. 
"(B) The term 'routine governmental action' does not include 
any decision by a foreign official whether, or on what terms, to 
award new business to or to continue business with a particular 
party, or any action taken by a foreign official involved in the 
decisionmaking process to encourage a decision to award new 
business to or continue business with a particular party.". 
(b) VIOLATIONS.—Section 32(c) of the Securities Exchange Act of 
1934 (15 U.S.C. 78f0 is amended to read as follows: 
"(cXlXA) Any issuer that violates section 30A(a) shall be fined not 
more than $2,000,000. 
"(B) Any issuer that violates section 30A(a) shall be subject to a 
civil penalty of not more than $10,000 imposed in an action brought 
by the Commission. 
"(2XA) Any officer or director of an issuer, or stockholder acting 
on behalf of such issuer, who willfully violates section 30A(a) shall 
be fined not more than $100,000, or imprisoned not more than 5 
years, or both. 
"(B) Any employee or agent of an issuer who is a United States 
citizen, national, or resident or is otherwise subject to the jurisdic-
tion of the United States (other than an officer, director, or stock-
holder acting on behalf of such issuer), and who willfully violates 
section 30A(a), shall be fined not more than $100,000, or imprisoned 
not more than 5 years, or both. 
"(C) Any officer, director, employee, or agent of an issuer, or 
stockholder acting on behalf of such issuer, who violates section 
30A(a) shall be subject to a civil penalty of not more than $10,000 
imposed in an action brought by the Commission. 
' (3) Whenever a fine is imposed under paragraph (2) upon any 
officer, director, employee, agent, or stockholder of an issuer, such 
fine may not be paid, directly or indirectly, by such issuer.". 
(c) PROHIBITED TRADE PRACTICES BY DOMESTIC CONCERNS.—Section 
104 of the Foreign Corrupt Practices Act of 1977 (15 U.S.C. 78dd-2) is 
amended to read as follows: 
"PROHIBITED FOREIGN TRADE PRACTICES BY DOMESTIC CONCERNS 
"SEC. 104. (a) PROHIBITION.—It shall be unlawful for any domestic Mail. 
concern, other than an issuer which is subject to section 30A of the ^^^^ ^"^ 
Securities Exchsuige Act of 1934, or for any officer, director, em- P
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ployee, or agent of such domestic concern or any stockholder thereof 
acting on behalf of such domestic concern, to make use of the mails 
102 STAT. 1420 
PUBLIC LAW 100-418—AUG. 23, 1988 
or any means or instrumentality of interstate commerce curruptly 
in furtherance of an offer, pa3mient, promise to pay, or authorization 
of the payment of any money, or offer, gift, promise to give, or 
authorization of the giving of an)i;hing of value to— 
"(1) any foreign official for purposes of— 
"(AXi) influencing any act or decision of such foreign 
official in his official capacity, or (ii) inducing such foreign 
official to do or omit to do any act in violation of the lawful 
duty of such official, or 
"(B) inducing such foreign official to use his influence 
with a foreign government or instrumentality thereof to 
affect or influence any act or decision of such government 
or instrumentality, 
in order to assist such domestic concern in obtaining or retain-
ing business for or with, or directing business to, any person; 
"(2) any foreign political party or official thereof or any 
candidate for foreign political office for purposes of— 
"(AXi) influencing any act or decision of such party, 
official, or candidate in its or his official capacity, or (ii) 
inducing such party, official, or candidate to do or omit to 
do an act in violation of the lawful duty of such party, 
official, or candidate, 
"(B) inducing such party, official, or candidate to use its 
or his influence with a foreign government or instrumental-
ity thereof to affect or influence any act or decision of such 
government or instrumentality, 
in order to assist such domestic concern in obtaining or retain-
ing business for or with, or directing business to, any person; or 
'(3) any person, while knowing that all or a portion of such 
money or thing of value will be offered, given, or promised, 
directly or indirectly, to any foreign ofGcial, to any foreign 
political party or official thereof, or to any candidate for foreign 
political office, for purposes of— 
"(AXi) influencing any act or decision of such foreign 
official, political party, party official, or candidate in his or 
its officud capacity, or (ii) inducing such foreign official, 
political party, party official, or candidate to do or omit to 
do any act in violation of the lawful duty of such foreign 
official, political party, party official, or candidate, or 
"(B) inducing such foreign ofKcial, political party, party 
official, or candidate to use his or its influence with a 
foreign government or instrumentality thereof to affect or 
influence any act or decision of such government or 
instrumentality, 
in order to assist such issuer in obtaining or retaining business 
for or with, or directing business to, any person. 
"(b) EXCEPTION FOR ROUTINE GOVERNMENTAL ACTION.—Subsection 
(a) shall not apply to any facilitating or expediting payment to a 
foreign ofifidal, political party, or party official the purpose of which 
is to expedite or to secure the performance of a routine govern-
mental action by a foreign official, political party, or party official. 
"(c) AFFIRMATIVE DEFENSES.—It shaU be an affirmative defense to 
actions under subsection (a) that— 
"(1) the payment, gift, offer, or promise of anything of value 
that was made, was lai^ul under the written laws and r^ula-
tions of the foreign <rf!icial's, political party's, party official s, or 
candidate's country; or 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1421 
"(2) the pajmient, gift, offer, or promise of anything of value 
that was made, was a reasonable and bona fide expenditure, 
such as travel and lodging expenses, incurred by or on behalf of 
a foreign official, party, party official, or candidate and was 
directly related to— 
"(A) the promotion, demonstration, or explanation of 
products or services; or 
"(B) the execution or performance of a contract with a 
foreign government or agency thereof 
"(d) INJUNCTIVE REUEF.—(1) When it appears to the Attorney 
Courts, U.S. 
General that any domestic concern to which this section applies, or 
officer, director, employee, agent, or stockholder thereof, is engaged, 
or about to engage, in any act or practice constituting a violation of 
subsection (a) of this section, the Attorney General may, in his 
discretion, bring a civil action in an appropriate district court of the 
United States to enjoin such act or practice, and upon a proper 
showing, a permanent injunction or a temporary restraining order 
shall be granted without bond. 
"(2) For the purpose of any civil investigation which, in the 
opinion of the Attorney General, is necessary and proper to enforce 
this section, the Attorney General or his designee are empowered to 
administer oaths and aifirmations, subpoena witnesses, take evi-
dence, and require the production of any books, papers, or other 
documents which the Attorney General deems relevant or material 
to such investigation. The attendance of witnesses and the produc-
tion of documentary evidence may be required from any place in the 
United States, or any territory, possession, or commonwealth of the 
United States, at any designated place of hearing. 
"(3) In case of contumacy by, or refusal to obey a subpoena issued 
to, any person, the Attorney General may invoke the aid of any 
court of the United States within the jurisdiction of which such 
investigation or proceeding is carried on, or where such person 
resides or carries on business, in requiring the attendance and 
testimony of witnesses and the production of books, papers, or other 
documents. Any such court may issue an order requiring such 
person to appear before the Attorney (Jeneral or his designee, there 
to produce records, if so ordered, or to give testimony touching the 
matter under investigation. Any failure to obey such order of the 
court may be punished by such court as a contempt thereof 
All process in any such case may be served in the judicial district 
in which such person resides or may be found. The Attorney Gen-
eral may make such rules relating to civil investigations as may be 
necessary or appropriate to implement the provisions of this 
subsection. 
"(e) GuiDEUNES B
Y THE ATTORNEY GENERAL.—Not later than 6 
months after the date of the enactment of the Foreign Corrupt 
Practices Act Amendments of 1988, the Attorney (Jeneral, after 
consultation with the Securities and Exchange Commission, the 
Secretary of Commerce, the United States Trade Representative, the 
Secretary of State, and the Secretary of the Treasury, and after 
obtaining the views of all interested persons through public notice 
and comment procedures, shall determine to what extent compli-
ance with this section would be enhanced and the business commu-
nity would be assisted by further clarification of the preceding 
provisions of this section and may, based on such determination and 
to the extent necessary and appropriate, issue— 
19-194 O—91—Part 2 
14 : QL 3 
102 STAT. 1422 
PUBLIC LAW 100-418—AUG. 23, 1988 
Contracts. 
Courts, U.S. 
Classified 
information. 
'(1) guidelines describing specific types of conduct, associated 
with common t3rpes of export sales arrangements and business 
contracts, which for purposes of the Department of Justice's 
present enforcement policy, the Attorney General determines 
would be in conformance with the preceding provisions of this 
section; and 
"(2) general precautionary procedures which domestic con-
cerns may use on a voluntary basis to conform their conduct to 
the Department of Justice's present enforcement policy regard-
ing the preceding provisions of this section. 
The Attorney General shall issue the guidelines and procedures 
referred to in the preceding sentence in accordance with the provi-
sions of subchapter II of chapter 5 of title 5, United States Code, and 
those guidelines and procedures shall be subject to the provisions of 
chapter 7 of that title. 
"(f) OPINIONS OF THE ATTORNEY GENERAL.—(1) The Attorney Gen-
eral, after consultation with appropriate departments and agencies 
of the United States and after obtaining the views of all interested 
persons through public notice and comment procedures, shall estab-
lish a procedure to provide responses to specific inquiries by domes-
tic concerns concerning conformance of their conduct with the 
Department of Justice's present enforcement policy regarding the 
preceding provisions of this section. The Attorney General shall, 
within 30 days after receiving such a request, issue an opinion in 
response to that request. The opinion shall state whether or not 
certain specified prospective conduct would, for purposes of the 
Department of Justice's present enforcement policy, violate the 
preceding provisions of this section. Additional requests for opinions 
may be filed with the Attorney General regarding other specified 
prospective conduct that is beyond the scope of conduct specified in 
previous requests. In any action brought under the applicable provi-
sions of this section, there shcdl be a rebuttable presumption that 
conduct, which is specified in a request by a domestic concern and 
for which the Attorney General has issued an opinion that such 
conduct is in conformity with the Department of Justice's present 
enforcement policy, is in compliance with the preceding provisions 
of this section. Such a presumption may be rebutted by a preponder-
ance of the evidence. In considering the presumption for purposes of 
this par£^aph, a court shall weigh all relevant factors, including 
but not limited to whether the information submitted to the Attor-
ney General was accurate and complete and whether it was within 
the scope of the conduct specified in any request received by the 
Attorney General. The Attorney General shall establish the proce-
dure required by this paragraph in accordance with the provisions of 
subchapter II of chapter 5 of title 5, United States Code, and that 
procedure shall be subject to the provisions of chapter 7 of that title. 
"(2) Any document or other material which is provided to, re-
ceived by, or prepared in the Department of Justice or any other 
department or agency of the United States in connection with a 
request by a domestic concern under the procedure established 
under paragraph (1), shall be exempt from disclosure under section 
552 of title 5, United States Code, and shall not, except with the 
consent of the domestic concern, be made publicly available, regard-
less of whether the Attorney General responds to such a request or 
the domestic concern withdraws such request before receiving a 
response. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1423 
"(3) Any domestic concern who has made a request to the Attor-
ney General under paragraph (1) may withdraw such request prior 
to the time the Attorney General issues an opinion in response to 
such request. Any request so withdrawn shall have no force or 
effect. 
"(4) The Attorney General shall, to the maximum extent prac-
ticable, provide timely guidance concerning the Department of Jus-
tice's present enforcement policy with respect to the preceding 
provisions of this section to potential exporters and small businesses 
that are unable to obtain specialized counsel on issues pertaining to 
such provisions. Such guidance shall be limited to responses to 
requests under paragraph (1) concerning conformity of specified 
prospective conduct with the Department of Justice's present 
enforcement policy regarding the preceding provisions of this sec-
tion and general explanations of compliance responsibilities and of 
potential liabilities under the preceding provisions of this section. 
"(g) PENALTIES.—(IXA) Any domestic concern that violates subsec-
tion (a) shall be fined not more than $2,000,000. 
"(B) Any domestic concern that violates subsection (a) shall be 
subject to a civil penalty of not more than $10,000 imposed in an 
action brought by the Attorney General. 
"(2)(A) Any officer or director of a domestic concern, or stock-
holder acting on behalf of such domestic concern, who willfully 
violates subsection (a) shall be fined not more than $100,000, or 
imprisoned not more than 5 years, or both. 
"(B) Any employee or agent of a domestic concern who is a United 
States citizen, national, or resident or is otherwise subject to the 
jurisdiction of the United States (other than an officer, director, or 
stockholder acting on behalf of such domestic concern), and who 
willfully violates subsection (a), shall be fined not more than 
$100,000, or imprisoned not more than 5 years, or both. 
"(C) Any officer, director, employee, or agent of a domestic con-
cern, or stockholder acting on behalf of such domestic concern, who 
violates subsection (a) shall be subject to a civil penalty of not more 
than $10,000 imposed in an action brought by the Attorney General. 
"(3) Whenever a fine is imposed under paragraph (2) upon any 
officer, director, employee, Eigent, or stockholder of a domestic con-
cern, such fine may not be paid, directly or indirectly, by such 
domestic concern. 
"(h) DEFINITIONS.—For purposes of this section: 
"(1) The term 'domestic concern' means— 
"(A) any individual who is a citizen, national, or resident 
of the United States; and 
"(B) any corporation, partnership, association, joint-stock 
company, business trust, unincorporated organization, or 
sole proprietorship which has its principal place of business 
in the United States, or which is organized under the laws 
of a State of the United States or a territory, possession, or 
commonwealth of the United States. 
"(2) The term 'foreign official' means any officer or employee 
of a foreign government or any department, agency, or 
instrumentality thereof, or any person acting in an official 
capacity for or on behalf of any such government or depart-
ment, agency, or instrumentality. 
"(SKA) A person's state of mind is 'knowing' with respect to 
conduct, a circumstance, or a result if— 
102 STAT. 1424 
PUBLIC LAW 100-418—AUG. 23, 1988 
''(i) such person is aware that such person is engaging in 
such conduct, that such circumstauice exists, or that such 
result is substantially certain to occur; or 
"(ii) such person has a firm belief that such circumstance 
exists or that such result is substantially certain to occur. 
"(B) When knowledge of the existence of a particular cir-
cumstance is required for an offense, such knowledge is estab-
lished if a person is aware of a high probability of the existence 
of such circumstance, unless the person actually believes that 
such circumstance does not exist. 
"(4XA) For purposes of paragraph (1), the term 'routine 
governmental action' means only an action which is ordi-
narily and conunonly performed by a foreign official in— 
"(i) obtaining permits, licenses, or other official docu-
ments to qualify a person to do business in a foreign 
country; 
"(ii) processing governmental papers, such as visas and 
work orders; 
"(iii) providing police protection, mail pick-up and deliv-
ery, or schedulii^ inspections associated with contract 
peiformance or inspections related to transit of goods 
across country; 
"(iv) providing phone service, power and water supply, 
loading and unloading cargo, or protecting perishable prod-
ucts or commodities from deterioration; or 
"(v) actions of a similar nature. 
"(B) The term 'routine governmental action' does not include 
any decision by a foreign official whether, or on what terms, to 
award new business to or to continue business with a particiUar 
party, or any action taken by a foreign official involved in the 
decision-making process to encourage a decision to award new 
business to or continue business with a particular party. 
"(5) The term 'interstate conmierce' means trade, commerce, 
transportation, or communication among the several States, or 
between any foreign country and any State or between any 
State and any place or ship outside thereof, and such term 
includes the intrastate use of— 
"(A) a telephone or other interstate means of conmiunica-
tion, or 
"(B) any other interstate instrumentality.". 
15 u s e 78dd-l 
(d) INTERNATIONAL AGREEMENT.— 
(1) NEGOTIATIONS.—It is the sense of the Congress that the 
President should pursue the n^otiation of an international 
agreement, among the members of the Organization of Eco-
nomic Cooperation and Development, to govern persons from 
those countries concerning acts prohibited with respect to 
issuers and domestic concerns by the amendments made by this 
section. Such international agreement should include a process 
by which problems and conflicts associated with such acts could 
be resolved. 
(2) REPORT TO CONGRESS.—(A) Within 1 year after the date of 
the enactment of this Act, the President shall submit to the 
Congress a report on— 
(i) the progress of the n^otiations referred to in 
paragraph (1), 
(ii) those steps which the executive branch and the 
Congress should consider taking in the event that these 
note. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1425 
negotiations do not successfully eliminate any competitive 
disadvantage of United States businesses that results when 
persons from other countries commit the acts described in 
pars^aph (1); and 
(iii) possible actions that could be taken to promote co-
operation by other countries in international efforts to 
prevent bribery of foreign officials, candidates, or parties in 
third countries. 
(B) The President shall include in the report submitted under President of U.S. 
subparagraph (A)— 
(i) any legislative recommendations necessary to give the 
President the authority to take appropriate action to carry 
out clauses (ii) and (iii) of subparagraph (A); 
(ii) an analysis of the potential effect on the interests of 
the United States, including United States national secu-
rity, when persons from other countries commit the acts 
described in paragraph (1); and 
(iii) an assessment of the current and future role of 
private initiatives in curtailing such acts. 
PART II—REVIEW OF CERTAIN MERGERS, 
ACQUISITIONS, AND TAKEOVERS 
SEC. 5021. AUTHORITY TO REVIEW CERTAIN MERGERS. ACQUISITIONS. 
AND TAKEOVERS. 
Title VII of the Defense Production Act of 1950 (50 U.S.C. App. 
2158 et seq.) is amended by adding at the end thereof the following: 
AUTHORITY TO REVIEW CERTAIN MERGERS, ACQUISITIONS, AND 
TAKEOVERS 
"SEC. 721. (a) INVESTIGATIONS.—The President or the President's 
designee may make an investigation to determine the effects on 
national security of mergers, acquisitions, and takeovers proposed or 
pending on or after the date of enactment of this section by or with 
foreign persons which could result in foreign control of persons 
engaged in interstate commerce in the United States. If it is deter-
mined that an investigation should be undertaken, it shall com-
mence no later than 30 days sifter receipt by the President or the 
President's designee of written notification of the proposed or pend-
ing mei^er, acquisition, or takeover as prescribed by regulations 
promulgated pursuant to this section. Such investigation shall be 
completed no later than 45 days after such determination. 
"(b) CONFIDENTIALITY OF INFORMATION.—Any information or docu-
mentary material filed with the President or the President's des-
ignee pursuant to this section shall be exempt from disclosure under 
section 552 of title 5, United States Code, and no such information or 
documentary material may be made public, except as may be rel-
evant to any administrative or judicisd action or proceeding. Noth-
ing in this subsection shall be construed to prevent disclosure to 
either House of Congress or to any duly authorized committee or 
subcommittee of the Congress. 
"(c) ACTION BY THE PRESIDENT.—Subject to subsection (d), the 
President may take such action for such time as the President 
considers appropriate to suspend or prohibit any acquisition, 
merger, or takeover, of a person engaged in interstate commerce in 
Defense and 
national 
security. 
50 u s e app. 
2170. 
102 STAT. 1426 
PUBLIC LAW 100-418—AUG. 23, 1988 
the United States proposed or pending on or after the date of 
enactment of this section by or with foreign persons so that such 
President of U.S. control will not threaten to impair the national security. The Presi-
dent shall announce the decision to take action pursuant to this 
subsection not later than 15 days after the investigation described in 
subsection (a) is completed. The President may direct the Attorney 
General to seek appropriate relief, including divestment relief, in 
the district courts of the United States in order to implement and 
enforce this section. 
"(d) FINDINGS OF THE PRESIDENT.—The President may exercise the 
authority conferred by subsection (c) only if the President finds 
t h a t -
'll) there is credible evidence that leads the President to 
believe that the foreign interest exercising control might take 
action that threatens to impair the national security, and 
"(2) provisions of law, other than this section and the Inter-
national Emergency Economic Powers Act (50 U.S.C. 1701-
1706), do not in the President's judgment provide adequate and 
appropriate authority for the President to protect the national 
security in the matter before the President. 
The provisions of subsection (d) of this section shall not be subject to 
judicial review. 
"(e) FACTORS TO BE CONSIDERED.—For purposes of this section, the 
President or the President's designee may, taking into account the 
requirements of national security, consider among other factors— 
"(1) domestic production needed for projected national defense 
requirements, 
"(2) the capability and capacity of domestic industries to meet 
national defense requirements, including the availability of 
human resources, products, technology, materials, and other 
supplies and services, and 
'(3) the control of domestic industries and commercial activ-
ity by foreign citizens as it affects the capability and capacity of 
the United States to meet the requirements of national security. 
President of U.S. 
'(D REPORT T
O THE CONGRESS.—If the President determines to take 
action under subsection (c), the President shall immediately trans-
mit to the Secretary of the Senate and the Clerk of the House of 
Representatives a written report of the action which the President 
intends to take, including a detailed explanation of the findings 
made under subsection (d). 
President of U.S. 
"(g) REGULATIONS.—'The President shall direct the issuance of 
regulations to carry out this section. Such regulations shall, to the 
extent possible, minimize paperwork burdens and shall to the extent 
possible coordinate reporting requirements under this section with 
reporting requirements under any other provision of Federal law. 
(h) EFFECT ON OTHER LAW.—Nothing in this section shall be 
construed to alter or affect any existing power, process, regulation, 
investigation, enforcement measure, or review provided by any 
other provision of law.". 
Technology 
Competitiveness 
Act. 
Research and 
development. 
15 u s e 271 note. 
Subtitle B—Technology 
PART I—TECHNOLOGY COMPETITIVENESS 
SEC. 5101. SHORT TITLE. 
This part may be cited as the "Technology Competitiveness Act". 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1427 
Subpart A—National Institute of Standards and 
Technology 
SEC. 5111. FINDINGS AND PURPOSES. 
Section 1 of the Act of March 3,1901 (15 U.S.C. 271) is amended to 
read as follows: 
"FINDINGS AND PURPOSES 
"SECTION 1. (a) The Congress finds and declares the following: 
"(1) The ftiture well-being of the United States economy 
depends on a strong manufacturing base and requires continual 
improvements in manufacturing technology, quaUty control, 
and techniques for ensuring product reliability and cost-
efTectiveness. 
"(2) Precise measurements, calibrations, and standards help 
United States industry and manufacturing concerns compete 
strongly in world markets. 
"(3) improvements in manufacturing and product technol(^y 
depend on fundamental scientific and engineering research to 
develop (A) the precise and accurate measurement methods and 
measurement standards needed to improve quality and reliabil-
ity, and (B) new technological processes by which such improved 
methods may be used in practice to improve manufacturing and 
to assist industry to transfer important laboratory discoveries 
into commercial products. 
"(4) Scientific pix^^ress, public safety, and product compatibil-
ity and standanlization also depend on the development of 
precise measurement methods, standards, and related basic 
technol(^es. 
"(5) The National Bureau of Standards since its establishment 
has served as the Federal focal point in developing basic 
measurement standards and related technol(^es, has taken a 
lead role in stimulating cooperative work among private indus-
trial organizations in efforts to surmount technological hurdles, 
and otherwise has been responsible for assisting in the improve-
ment of industrial technology. 
"(6) The Federal Government should maintain a national 
science, engineering, and technology laboratory which provides 
measurement methods, standards, and associated technolc^es 
and which aids United States companies in using new tech-
nol(^es to improve products and manufacturing processes. 
"(7) Such national laboratory also should serve industry, 
trade associations, State technolc^y prc^rams, labor organiza-
tions, professional societies, and educational institutions by 
disseminating information on new basic technologies including 
automated manufacturing processes. 
"0>) It is the purpose of this Act— 
"(1) to rename the National Bureau of Standards as the 
National Institute of Standards and Technology and to modern-
ize and restructure that agency to augment its unique ability to 
enhance the competitiveness of American industry while 
maintaining its traditional function as lead national laboratory 
for providing the measurements, calibrations, and quality assur-
ance techniques which underpin United States commerce, 
technological progress, improved product reliability and manu-
facturing processes, and public safety; 
102 STAT. 1428 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(2) to assist private sector initiatives to capitalize on ad-
vanced technology; 
"(3) to advance, through cooperative efforts among industries, 
universities, and government laboratories, promising research 
and development projects, which can be optimized by the 
private sector for commercial and industrial applications; and 
"(4) to promote shared risks, accelerated 
development, 
and pooling of skills which will be necessary to strengthen 
America's manufacturing industries.". 
SEC. 5112. ESTABLISHMENT, FUNCTIONS, AND ACTIVITIES. 
(a) ESTABUSHMENT, FUNCTIONS, AND ACTIVITIES OF THE IN-
STITUTE.—Section 2 of the Act of March 3, 1901 (15 U.S.C. 272) is 
amended to read as follows: 
"ESTABUSHMENT, FUNCTIONS, AND ACTIVITIES 
"SEC. 2. (a) There is established within the Department of Com-
merce a science, engineering, technology, and measurement labora-
tory to be known as the National Institute of Standards and 
Technology (hereafter in this Act referred to as the 'Institute'). 
"(b) The Secretary of Commerce (hereafter in this Act referred to 
as the 'Secretary') acting through the Director of the Institute 
(hereafter in this Act referred to as the 'Director') and, if appro-
priate, through other officials, is authorized to take all actions 
necessary and appropriate to accomplish the purposes of this Act, 
including the following functions of the Institute— 
"(1) to assist industry in the development of technology and 
procedures needed to improve quality, to modernize manufac-
turing 
processes, 
to 
ensure 
product 
reliability, 
manufacturability, functionality, and cost-effectiveness, and to 
facilitate the more rapid commercialization, especially by small-
and medium-sized companies throughout the United States, of 
products bsised on new scientific discoveries in fields such as 
automation, electronics, advanced materials, biotechnology, and 
optical technologies; 
"(2) to develop, maintain, and retain custody of the national 
standards of measurement, and provide the means and methods 
for making measurements consistent with those standards, 
including comparing standards used in scientific investigations, 
engineering, manufacturing, commerce, industry, and edu-
cational institutions with the standards adopted or recognized 
by the Federal Government; 
Contracts. 
"(3) to enter into contracts, including cooperative research 
and development arrangements, in furtherance of the purposes 
of this Act; 
"(4) to provide United States industry. Government, and edu-
cational institutions with a national clearinghouse of current 
information, techniques, and advice for the achievement of 
higher quality and productivity based on current domestic and 
international scientific and technical development; 
"(5) to assist industry in the development of measurements, 
measurement methods, and basic measurement technology; 
"(6) to determine, compile, evaluate, and disseminate physical 
constants and the properties and performance of conventional 
and advanced materials when they are important to science, 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1429 
engmeering, manufacturing, education, commerce, and industry 
and are not available with sufficient accuracy elsewhere; 
"(7) to develop a fundeunental basis and methods for testing 
materials, mechanisms, structures, equipment, and systems, 
including those used by the Federal Government; 
"(8) to assure the compatibility of United States national 
measurement standards with those of other nations; 
"(9) to cooperate with other departments and agencies of the 
Federal Government, with industry, with State and local 
governments, witli the governments of other nations and inter-
national organizations, and with private organizations in 
establishing standard practices, codes, specifications, and vol-
untary consensus standards; 
"(10) to advise government and industry on scientific and 
technical problems; and 
"(11) to invent, develop, and (when appropriate) promote 
transfer to the private sector of measurement devices to serve 
special national needs. 
"(c) In carrying out the functions specified in subsection (b), the 
Secretary, acting through the Director and, if appropriate, through 
other appropriate officials, may, among other thic^— 
"(1) construct physical standards; 
"(2) test, calibrate, and certify standards and standard meas-
uring apparatus; 
"(3) study and improve instruments, measurement methods, 
and industrial process control and quality assurance techniques; 
"(4) cooperate with the States in securing imiformity in 
weights and measures laws and methods of inspection; 
"(5) cooperate with foreign scientific and technical institu-
tions to understand technological developments in other coun-
tries better; 
"(6) prepare, certify, and sell standard reference materials for 
use in ensuring the accuracy of chemical analyses and measure-
ments of physical and other properties of materials; 
"(7) in furtherance of the purposes of this Act, accept resesurch 
associates, cash donations, and donated equipment from indus-
try, and also engage with industry in research to develop new 
basic and generic technologies for traditional and new products 
and for improved production and manufacturing; 
"(8) study and develop fundamental scientific understanding 
and improved measurement, analysis, synthesis, processing, and 
fabrication methods for chemical substances and compounds, 
ferrous and nonferrous metals, and all traditional and advanced 
materials, including processes of degradation; 
"(9) investigate ionizing and nonionizing radiation and radio-
active substances, their uses, and ways to protect people, struc-
tures, and equipment from their harmful effects; 
"(10) determine the atomic and molecular structure of matter, 
throu^ analysis of spectra and other methods, to provide a 
basis for predicting chemical and physical structures and reac-
tions and for designing new materials and chemical substances, 
including biologically active macromolecules; 
"(11) perform research on electromagnetic waves, including 
optical waves, and on properties and performance of electrical, 
electronic, and electromagnetic devices and systems and their 
essential materials, develop and maintain related standards. 
102 STAT. 1430 
PUBLIC LAW 100-418—AUG. 23, 1988 
and disseminate standard signals through broadcast and other 
means; 
"(12) develop and test standard interfaces, communication 
protocols, and data structures for computer and related tele-
communications systems; 
"(13) study computer systems (as that term is defined in 
section 20(d) of this Act) and their use to control machinery and 
processes; 
"(14) perform research to develop standards and test methods 
to advance the effective use of computers and related systems 
and to protect the information stored, processed, and tremsmit-
ted by such systems and to provide advice in support of policies 
affecting Federal computer and related telecommunications 
systems; 
"(15) determine properties of building materials and struc-
tural elements, and encourage their standardization and most 
effective use, including investigation of fire-resisting properties 
of building materials and conditions under which they may be 
most efficiently used, and the standardization of types of appli-
ances for fire prevention; 
"(16) undertake such research in engineering, pure and ap-
plied mathematics, statistics, computer science, materials sci-
ence, and the physical sciences as may be necessary to carry out 
and support the functions specified in this section; 
"(17) compile, evaluate, publish, and otherwise disseminate 
general, specific and technical data resulting from the perform-
ance of the functions specified in this section or from other 
sources when such data are important to science, engineering, 
or industry, or to the general public, and are not available 
elsewhere; 
"(18) collect, create, analyze, and maintain specimens of sci-
entific value; 
"(19) operate national user facilities; 
"(20) evaluate promising inventions and other novel technical 
concepts submitted by inventors and small companies and work 
with other Federal agencies. States, and localities to provide 
appropriate technical assistance and support for those inven-
tions which are found in the evaluation process to have 
commercial promise; 
"(21) demonstrate the results of the Institute's activities by 
exhibits or other methods of technology transfer, including the 
use of scientific or technical personnel of the Institute for part-
time or intermittent teaching and training activities at edu-
cational institutions of higher learning as part of and incidental 
to their official duties; and 
"(22) undertake such other activities similar to those specified 
in this subsection as the Director determines appropriate.". 
15 use 1532. 
(b) OTHER FUNCTIONS OF SECRETARY.—The Secretary of Commerce 
is authorized to— 
(1) conduct research on all of the telecommunications sci-
ences, including wave propagation and reception, the conditions 
which affect electromagnetic wave propagation and reception, 
electromagnetic noise and interference, radio system character-
istics, operating techniques affecting the use of the electro-
magnetic spectrum, and methods for improving the use of the 
electromagnetic spectrum for telecommunications purposes; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1431 
(2) prepare and issue predictions of electromagnetic wave 
propagation conditions and warnings of disturbances in such 
conditions; 
(3) investigate conditions which affect the transmission of 
radio waves from their source to a receiver and the compilation 
and distribution of information on such transmission of radio 
waves as a basis for choice of frequencies to be used in radio 
operations; 
(4) conduct research and analysis in the general field of 
telecommunications sciences in support of assigned functions 
and in support of other Government agencies; 
(5) investigate nonionizing electromagnetic radiation and its 
uses, as well as methods and procedures for measuring and 
assessing electromagnetic environments, for the purpose of 
developing and coordinating policies and procedures affecting 
Federal Government use of the electromagnetic spectrum for 
telecommunications purposes; 
(6) compile, evaluate, publish, and otherwise disseminate gen-
eral scientific and technical data resulting from the perform-
ance of the functions specified in this section or from other 
sources when such data are important to science, engineering, 
or industry, or to the general public, and are not available 
. elsewhere; and 
(7) undertake such other activities similar to those specified in 
this subsection as the Secretary of Commerce determines 
appropriate. 
(c) DIRECTOR OF INSTITUTE.—(1) Section 5 of the Act of March 3, 
1901 (15 U.S.C. 274) is amended to read as follows: 
"SEC. 5. The Director shall be appointed by the President, by and President of U.S. 
with the advice and consent of the Senate. The Director shall have 
the general supervision of the Institute, its equipment, and the 
exercise of its functions. The Director shall make an annual report Reports, 
to the Secretary of Commerce. The Director may issue, when nec-
essary, bulletins for public distribution, containing such information 
as may be of value to the public or facilitate the exercise of the 
functions of the Institute. The Director shall be compensated at the 
rate in effect for level IV of the Executive Schedule under section 
5315 of title 5, United States Code. Until such time as the Director 
assumes office under this section, the most recent Director of the 
National Bureau of Standards shall serve as Director.". 
(2) Section 5315 of title 5, United States Code, is amended by 
striking "National Bureau of Standards" and inserting in lieu 
thereof "National Institute of Standards and Technolc^y". 
(d) ORGANIZATION PLAN.—(1) At least 60 days before its effective 
15 use 272 note, 
date and within 120 days after the date of the enactment of this Act, 
an initial organization plan for the National Institute of Standards 
and Technology (hereafter in this part referred to as the "Institute") 
shall be submitted by the Director of the Institute (hereafter in this 
part referred to as the "Director") after consultation with the 
Visiting (Committee on Advanced Technology, to the Committee on 
Science, Space, and Technology of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the 
Senate. Such plan shall— 
(A) establish the major operating units of the Institute; 
(B) assign each of the activities listed in section 2(c) of the Act 
of March 3, 1901, and all other functions and activities of the 
102 STAT. 1432 
PUBLIC LAW 100-418—AUG. 23, 1988 
Institute, to at least one of the major operating units established 
under subparagraph (A); 
(C) provide details of a 2-year program for the Institute, 
including the Advanced Technology Program; 
(D) provide details regarding how the Institute will expand 
and fund the Inventions program in accordance with section 27 
of the Act of March 3,1901; and 
(E) make no changes in the Center for Building Technology or 
the Center for Fire Research. 
(2) The Director may revise the organization plan. Any revision of 
the organization plan submitted under paragraph (1) shall be 
submitted to the appropriate committees of the House of Represent-
atives and the Senate at least 60 days before the effective date of 
such revision. 
(3) Until the effective date of the organization plan, the major 
operating units of the Institute shall be the major operating units of 
the National Bureau of Standards that were in existence on the date 
of the enactment of this Act and the Advanced Technology Program. 
SEC. 5113. REPEAL OF PROVISIONS. 
The second paragraph of the material relating to the Bureau of 
Standards in the first section of the Act of July 16, 1914 (15 U.S.C. 
280), the last paragraph of the material relating to Contingent and 
Miscellaneous Expenses in the first section of the Act of 
March 4, 1913 (15 U.S.C. 281), and the first section of the Act of 
May 14,1930 (15 U.S.C. 282) are repealed. 
SEC. 5114. REPORTS TO CONGRESS; STUDIES BY THE NATIONAL ACAD-
EMIES OF ENGINEERING AND SCIENCES. 
The Act of March 3, 1901 (15 U.S.C. 271 et seq.) is amended— 
15 use 271 note. 
(1) by redesignating section 23 as section 31; and 
(2) by adding after section 22 the following new sections: 
"REPORTS TO CONGRESS 
15 use 278i. 
"SEC. 23. (a) The Director shall keep the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on 
Science, Space, and Technology of the House of Representatives 
fully and currently informed with regard to all of the activities of 
the Institute. 
"G)) The Director shall justify in writing all changes in policies 
regarding fees for standard reference materials and calibration 
services occurring after June 30, 1987, including a description of the 
anticipated impact of any proposed changes on demand for and 
anticipated revenues from the materials and services. Changes in 
policy and fees shall not be effective unless and until the Director 
has submitted the proposed schedule and justification to the Con-
gress and 30 days on which both Houses of Congress are in session 
have elapsed since such submission, except that the requirement of 
this sentence shall not apply with respect to adjustments which are 
based solely on changes in the costs of raw materials or of producing 
and delivering standard reference materials or calibration services. 
"STUDIES BY THE NATIONAL RESEARCH COUNCIL 
Contracts. 
"SEC. 24. The Director may periodically contract with the Na-
15 use 278j. 
tional Research Council for advice and studies to assist the Institute 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1433 
to serve United States industry and science. The subjects of such 
advice and studies may include— 
"(1) the competitive position of the United States in key areas 
of manufacturing and emerging technologies and research 
activities which would enhance that competitiveness; 
"(2) potential activities of the Institute, in cooperation with 
industry and the States, to assist in the transfer 
and 
dissemination of new technologies for manufacturing and 
quality assurance; and 
"(3) identification and assessment of likely barriers to wide-
spread use of advanced manufacturing technology by the 
United States workforce, including training and other initia-
tives which could lead to a higher percentage of manufacturing 
jobs of United States companies being located within the bor-
ders of our country.". 
SEC. 5115. TECHNICAL AMENDMENTS. 
(a) AMENDMENTS TO ORGANIC ACT.—(1) Except as provided in 
paragraph (2), the Act of March 3, 1901 (15 U.S.C. 271 et seq.) is 
amended by striking "National Bureau of Standards", "Bureau" ' 
and "bureau" wherever they appear and inserting in lieu thereof 
"Institute". 
(2) Section 31 of such Act, as so redesignated by section 5114(1) of 
this part, is amended by striking "National Bureau of Standards" 
and inserting in lieu thereof "National Institute of Standards and 
Technology". 
(b) AMENDMENTS TO STEVENSON-WYDLER TECHNOLOGY INNOVATION 
ACT OF 1980.—(1) Section 80)) of the Stevenson-Wydler Technolo^ 
Innovation Act of 1980, as so redesignated by section 5122 of this 
part, is amended by striking "Director" and inserting in lieu thereof 
15 USC 3706. 
'Assistant Secretary". 
(2) Sections 11(e) and 17(d) and (e) of the Stevenson-Wydler Tech-
nology Innovation Act of 1980, as so redesignated by section 
5122(aXl) of this part, are amended— 
15 USC 3710, 
(A) by striking "National Bureau of Standards" wherever it 
37iia. 
appears and inserting in lieu thereof "National Institute of 
Standards and Technology"; and 
(B) by striking "Bureau" wherever it appears and inserting in 
lieu thereof "Institute". 
(c) AMENDMENTS TO OTHER LAWS.—References in any other Fed- 
15 use 271 note. 
eral law to the National Bureau of Standards shall be deemed to 
refer to the National Institute of Standards and Technology. 
Subpart B—Technology Extension Activities and 
Clearinghouse on State and Local Initiatives 
SEC. 5121. TECHNOLOGY EXTENSION ACTIVITIES. 
(a) TECHNOLOGY CENTERS AND TECHNICAL ASSISTANCE.—The Act of 
March 3, 1901, as amended by this part, is further amended by 
adding after section 24 the following new sections: 
"REGIONAL CENTERS FOR THE TRANSFER OF MANUFACTURING 
TECHNOLOGY 
"SEC. 25. (a) The Secretary, through the Director and, if appro- 
15 use 278k. 
priate, through other ofHcials, shall provide assistance for the 
creation and support of Regional Centers for the Transfer of Manu-
102 STAT. 1434 
PUBLIC LAW 100-418—AUG. 23, 1988 
facturing Technology (hereafter in this Act referred to as the 'Cen-
ters'). Such centers shall be affiliated with any United States-based 
nonprofit institution or organization, or group thereof, that applies 
for and is awarded financial assistance under this section in accord-
ance with the description published by the Secretary in the Federal 
Register under subsection (cX2). Individual awards shall be decided 
on the basis of merit review. The objective of the Centers is to 
enhance productivity and technological performance in United 
States manufacturing through— 
"(1) the transfer of manufacturing technology and techniques 
developed at the Institute to Centers and, through them, to 
manufacturing companies throughout the United States; 
Schools and 
"(2) the participation of individuals from industry, univer-
coUeges. 
sities. State governments, other Federal agencies, and, when 
appropriate, the Institute in cooperative technology transfer 
activities; 
"(3) efforts to make new manufacturing technology and proc-
esses usable by United States-based small- and medium-sized 
companies; 
"(4) the active dissemination of scientific, engineering, tech-
nical, and management information about manufacturing to 
industrial firms, including small- and medium-sized manufac-
turing companies; and 
"(5) the utilization, when appropriate, of the expertise and 
capability that exists in Federal laboratories other than the 
Institute. 
"(b) The activities of the Centers shall include— 
"(1) the establishment of automated manufacturing systems 
and other advanced production technologies, based on research 
by the Institute, for the purpose of demonstrations and tech-
nology transfer; 
"(2) the active transfer and dissemination of research findings 
and Center expertise to a wide range of companies and enter-
prises, particidarly small- and medium-sized manufacturers; 
and 
"(3) loans, on a selective, short-term basis, of items of ad-
vanced manufacturing equipment to small manufacturing firms 
with less than 100 employees. 
"(cXD The Secretary may provide financial support to any Center 
created under subsection (a) for a period not to exceed six years. The 
Secretary may not provide to a Center more than 50 percent of the 
capital and annual operating and maintenance funds required to 
create and maintain such Center. 
Federal 
"(2) The Secretary shall publish in the Federal Register, within 90 
Register, 
days after the date of the enactment of this section, a draft descrip-
pubhcation. 
^j^jj ^f g
^ program for establishing Centers, including— 
"(A) a description of the program; 
"(B) procedures to be followed by applicants; 
"(C) criteria for determining qu£ilified applicants; 
"(D) criteria, including those listed under paragraph (4), for 
choosing recipients of financial assistance under this section 
from among the qualified applicants; and 
"(E) maximum support levels expected to be available to 
Centers under the program in the fourth through sixth years of 
assistance under this section. 
The Secretary shall publish a final description under this paragraph 
after the expiration of a 30-day comment period. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1435 
"(3) Any nonprofit institution, or group thereof, or consortia of 
nonprofit institutions, including entities existing on the date of the 
enactment of this section, may submit to the Secretary an applica-
tion for financial support under this subsection, in accordance with 
the procedures established by the Secretary and published in the 
Federal Roister under paragraph (2). In order to receive assistance 
under this section, an applicant shall provide adequate assurances 
that it will contribute 50 percent or more of the proposed Center's 
capital and annual operating and maintenance costs for the first 
three years and an increasing share for each of the last three years. 
Each applicant shall also submit a proposal for the allocation of the 
l^al rights associated with any invention which may result from 
the proposed Center's activities. 
"(4) The Secretary shall subject each such application to merit 
review. In making a decision whether to approve such application 
and provide financial support under this subsection, the Secretary 
shall consider at a minimum (A) the merits of the application, 
particularly those portions of the application regarding technology 
transfer, training and education, and adaptation of manufacturing 
technol(^es to the needs of particular industrial sectors, (B) the 
quality of service to be provided, (C) geogrsLphical diversity and 
extent of service area, and (D) the percentage of funding and 
amount of in-kind commitment from other sources. 
"(5) Each Center which receives financial assistance under this 
section shall be evaluated during its third year of operation by an 
evaluation panel appointed by the Secretary. E^ach such evaluation 
panel shall be composed of private experts, none of whom shall be 
connected with the involved Center, and Federal officials. An official 
of the Institute shall chair the panel. Each evaluation panel shall 
measure the involved Center's performance against the objectives 
specified in this section. The Secretary shall not provide funding for 
the fourth through the sixth years of such Center's operation unless 
the evaluation is positive. If the evaluation is positive, the Secretary 
may provide continued funding through the sixth year at declining 
levels, which are designed to ensure that the Center no longer needs 
financial support from the Institute by the seventh year. In no event 
shall fiindii^ for a Center be provided by the Department of Com-
merce after the sixth year of the operation of a Center. 
"(6) The provisions of chapter 18 of title 35, United States Code, 
shall (to the extent not inconsistent with this section) apply to the 
promotion of technology from research by Centers under this 
section. 
"(d) There are authorized to be appropriated for the purposes of Appropriation 
carrying out this section, a combined total of not to exceed authorization. 
$40,000,000 for fiscal years 1989 and 1990. Such sums shall remain 
available until expended. 
"ASSISTANCE TO STATE TECHNOLOGY PROGRAMS 
"SEC. 26. (a) In addition to the (Denters p n ^ a m created under 15 use 278/. 
section 25, the Secretary, through the Director and, if appropriate, 
through other officials, shall provide technical assistance to State 
technology programs throughout the United States, in order to help 
those prc^ams help businesses, particularly small- and medium-
sized businesses, to enhance their competitiveness through ttie 
application of science and technology. 
102 STAT. 1436 
PUBLIC LAW 100-418—AUG. 23, 1988 
Contracts. 
15 use 278/ 
note. 
Contracts. 
"(b) Such assistance from the Institute to State technology pro-
grams shall include, but not be limited to— 
"(1) technical 
information 
and 
advice 
from 
Institute 
personnel; 
"(2) workshops and seminars for State officials interested in 
transferring Federal technology to businesses; and 
"(3) entering into cooperative agreements when authorized to 
do so under this or any other Act. . 
(b) TECHNOLOGY EXTENSION SERVICES.—(1) The Secretary shall 
conduct a nationwide study of current State technology extension 
services. The study shsdl include— 
(A) a thorough description of each State program, including 
its duration, its annual budget, and the number and types of 
businesses it has aided; 
(B) a description of any anticipated expansion of each State 
program and its associated costs; 
(C) an evaluation of the success of the services in transferring 
technology, modernizing manufacturing processes, and improv-
ing the productivity and profitability of businesses; 
(D) an assessment of the degree to which State services make 
use of Federal programs, including the Small Business Innova-
tive Research program and the programs of the Federal Labora-
tory Consortium, the National Technical Information Service, 
the National Science Foundation, the Office of Produc-
tivity, Technology, and Innovation, and the Small Business 
Administration; 
(E) a survey of what additional Federal information and 
technical assistance the services could utilize; and 
(F) an assessment of how the services could be more effective 
agents for the transfer of Federal scientific and technical 
information, including the results and application of Federal 
and federally funded research. 
The Secretary shall submit to the Committee on Science, Space, and 
Technology of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate, at the time of 
submission of the organization plan for the Institute under section 
5112(dXl), the results of the study and an initial implementation 
plan for the programs under section 26 of the Act of March 3, 1901, 
and under this section. The implementation plan shall include 
methods of providing technical assistance to States and criteria for 
awarding financial assistance under this section. The Secretary may 
make use of contractors and experts for any or all of the studies and 
findings called for in this section. 
(2XA) The Institute shall enter into cooperative agreements with 
State technology extension services to— 
(i) demonstrate methods by which the States can, in coopera-
tion with Federal agencies, increase the use of Federal tech-
nology by businesses within their States to improve industrial 
competitiveness; or 
(ii) help businesses in their States take advantage of the 
services and information offered by the Regional Centers for the 
Transfer of Manufacturing Technology created under section 25 
of the Act of March 3,1901. 
(B) Any State, for itself or for a consortium of States, may submit 
to the Secretary an application for a cooperative agreement under 
this subsection, in accordance with procedures established by the 
Secretary. To qualify for a cooperative agreement under this subsec-
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1437-
tion, a State shall provide adequate assurances that it will increase 
its spending on technology extension services by an amount at least 
equal to the amount of Federal assistance. 
(C) In evaluating each application, the Secretary shall consider— 
(i) the number and types of addUtional businesses that will be 
assisted under the cooperative agreement; 
(ii) the extent to which the State extension service will dem-
onstrate new methods to increase the use of Federal technology; 
(iii) geographic diversity; and 
(iv) the abUity of the State to maintain the extension service 
after the cooperative agreement has expired. 
(D) States which are party to cooperative agreements under this 
subsection may provide services directly or may arrange for the 
provision of any or all of such services by institutions of higher 
education or other non-profit institutions or organizations. 
(3) In carrying out section 26 of the Act of March 3,1901, and this 
subsection, the Secretary shall coordinate the activities with the 
Federal Laboratory Consortium; the National Technical Informa-
tion Service; the National Science Foundation; the Office of 
Productivity, Technol(^, and Innovation; the Small Business 
Administration; and other appropriate Federal agencies. 
(4) There are authorized to be appropriated for the purposes of 
this subsection $2,000,000 for each of the fiscal years 1989,1990, and 
1991. 
(5) Cooperative agreements entered into under paragraph (2) shall 
terminate no later than September 30,1991. 
(c) FEDERAL TECHNOLOGY TRANSFER ACT OP 1986.—Nothing in 
sections 25 or 26 of the Act of March 3,1901, or in subsection (b) of 
this section shall be construed as limiting the authorities contained 
in the Federal Technology Transfer Act of 1986 (Public Law 99-502). 
(d) NON-ENERGY INVENTIONS RIOGRAM.—The Act of March 3,1901, 
as amended by this part, is further amended by adding after section 
26 the following new section: 
Appropriation 
authorization. 
Contracts. 
Termination datt 
15 u s e 278/ 
note. 
NON-ENERGY INVENTIONS PROGRAM 
"SEC. 27. In conjunction with the initial organization of the In- 15 use 278m. 
stitute, the Director shall establish a program for the evaluation of 
inventions that are not enei^-related to complement but not re-
place the Energy-Related Inventions Program established under 
section 14 of the Federal Nonnuclear Energy Research and Develop-
ment Act of 1974 (Public Law 93-577). The Director shall submit an 
initial implementation plan for this program to accompany the 
organization plan for the Institute. The implementation plan shall 
include specific cost estimates, implementation schedules, and 
mechanisms to help finance the development of technologies the 
program has determined to have potentisd. In the preparation of the 
plan, the Director shall consult with appropriate Federsd agencies, 
including the Small Business Administration and the Department of 
Energy, State and local government organizations, university offi-
cials, £md private sector organizations in order to obtein advice on 
how those agencies and organizations might cooperate with the 
expansion of this program of the Institute.". 
SEC. 5122. CLEARINGHOUSE ON STATE AND LOCAL INITIATIVES. 
(a) CLEARINGHOUSE.—The Stevenson-Wydler Technology Innova-
tion Act of 1980 (15 U.S.C. 3701 et seq.) is amended— 
102 STAT. 1438 
PUBLIC LAW 100-418—AUG. 23, 1988 
15 use 
3705-3708, 
3710-37lOd, 
3711, 3711a, 
3712-3714. 
15 u s e 3704a. 
V (1) by redesignating sections 6 through 19 as sections 7 
through 20, respectively; and 
(2) by inserting after section 5 the following new section: 
"SEC. 6. CLEARINGHOUSE FOR STATE AND LOCAL INITIATIVES O
N 
PRODUCTIVITY, TECHNOLOGY, AND INNOVATION. 
"(a) ESTABLISHMENT.—^There is established within the Office of 
Productivity, Technology, and Innovation a Clearinghouse for State 
and Local Initiatives on Productivity, Technology, and Innovation. 
The Clearinghouse shall serve as a central repository of information 
on initiatives by State and local governments to enhance the 
competitiveness of American business through the stimulation of 
productivity, technology, and innovation and Federal efforts to 
assist State and local governments to enhance competitiveness. 
"(b) RESPONSIBILITIBS.—^The Clearinghouse may— 
"(1) establish relationships with State and local governments, 
and r^onal and multistate organizations of such governments, 
which carry out such initiatives; 
*(2) collect information on the nature, extent, and effects of 
such initiatives, particularly information useful to the Congress, 
Federal agencies. State and local governments, regional and 
multistate organizations of such governments, businesses, and 
the public throughout the United States; 
"(3) disseminate information collected under paragraph (2) 
through reports, directories, handbooks, conferences, and 
seminars; 
"(4) provide technical assistance and advice to such govern-
ments with respect to such initiatives, including assistance in 
determining sources of assistance from Federal agencies which 
may be available to support such initiatives; 
' (5) study ways in which Federal agencies, including Federal 
laboratories, are able to use their existing policies and programs 
to assist State and local governments, and regional and 
multistate organizations of such governments, to enhance the 
competitiveness of American business; 
"(6) make periodic reconunendations to the Secretary, and to 
other Federal agencies upon their request, concerning modifica-
tions in Federal policies and programs which would improve 
Federal assistance to State and local technology and business 
assistance programs; 
"(7) develop methodol<^es to evaluate State and local pro-
grams, and, when requested, advise State and local govern-
ments, and r^onal and multistate organizations of such 
governments, as to which prc^ams are most effective in 
''- enhancing the competitiveness of American business through 
•- 
the stimulation of productivity, technology, and innovation; and 
"(8) make use of, and disseminate, the nationwide study of 
State 
industrial 
extension 
programs 
conducted 
by 
the 
Secretary. 
"(c) CONTRACTS.—In canying out subsection (b), the Secretary may 
enter into contracts for the purpose of collecting information on the 
nature, extent, and effects of initiatives. 
"(d) TRIENNIAL REPORT.—The Secretary shall prepare and trans-
mit to the Congress once each 3 years a report on initiatives by State 
and local governments to enhance the competitiveness of American 
businesses through the stimulation of productivity, technol(^y, and 
innovation. The report shall include recommendations to the Presi-
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1439 
dent, the Congress, and to Federal agencies on the appropriate 
Federal role in stimulating State and local efforts in this area. The 
first of these reports shall be transmitted to the Congress before 
January 1,1989.'\ 
(b) DEFINITION.—Section 4 of such Act is amended by adding at the 
15 USC 3703. 
end thereof the following new paragraph: 
"(13) 'Clearinghouse' means the Clearinghouse for State and 
Local Initiatives on Productivity, Technology, and Innovation 
established by section 6.". 
(c) CONFORMING AMENDMENT.—Section 10(d) of such Act, as so 
redesignated by section 5122(a)(1) of this part, is amended by strik- 
15 USC 3708. 
ing "6, 8,10,14,16, or 17" and inserting in lieu thereof "7, 9, 11,15, 
17, or 18". 
Subpart C—Advanced Technology Program 
SEC. 5131. ADVANCED TECHNOLOGY. 
(a) ADVANCED TECHNOLOGY PROGRAM.—The Act of March 3,1901, 
as amended by this part, is further amended by adding after section 
27 the following new section: 
"ADVANCED TECHNOLOGY PROGRAM 
"SEC. 28. (a) There is established in the Institute an Advanced 
15 use 278n. 
Technology Program (hereafter in this Act referred to as the 'Pro-
gram') for the purpose of assisting United States businesses in 
creating and applying the generic technology and research results 
necessary to— 
"(1) commercialize significant new scientific discoveries and 
technologies rapidly; and 
"(2) refine manufacturing technologies. 
The Secretary, acting through the Director, shall assure that the 
Program focuses on improving the competitive position of the 
United States and its businesses, gives preference to discoveries and 
to technologies that have great economic potential, and avoids 
providing undue advantage to specific companies. 
"
O
t
>
) Under the Program established in subsection (a), and consist-
ent with the mission and policies of the Institute, tlie Secretary, 
acting through the Director, and subject to subsections (c) and (d), 
may— 
"(1) aid United States joint research and development ven-
tures (hereafter in this section referred to as 'joint ventures') 
(which may also include universities and independent research 
organizations), including those involving collaborative tech-
nology demonstration projects which develop and test prototype 
equipment and processes, through— 
"(A) provision of organizational and technical advice; and 
"(B) participation in such joint ventures, if the Secretary, 
acting through the Director, determines participation to be 
appropriate, which may include (i) partial start-up funding, 
(ii) provision of a minority share of the cost of such joint 
ventures for up to 5 years, and (iii) making available equip-
ment, facilities, and personnel, 
provided that emphasis is placed on areas where the Institute 
has scientific or technological expertise, on solving generic prob-
lems of specific industries, and on making those industries more 
competitive in world markets; 
102 STAT. 1440 
PUBLIC LAW 100-418—AUG. 23, 1988 
Contracts. 
"(2) enter into contracts and cooperative agreements with 
United States businesses, especially smedl businesses, and with 
independent research organizations, provided that emphasis is 
placed on applying the Institute's research, research techniques, 
and expertise to those organizations' research programs; 
"(3) involve the Federal laboratories in the Program, where 
appropriate, using among other authorities the cooperative re-
search and development sigreements provided for under section 
12 of the Stevenson-Wydler Technology Innovation Act of 1980; 
and 
"(4) carry out, in a manner consistent with the provisions of 
this section, such other cooperative research activities with joint 
ventures as may be authorized by law or assigned to the Pro-
gram by the Secretary. 
"(c) The Secretary, acting through the Director, is authorized to 
take all actions necessary and appropriate to establish and operate 
the Program, including— 
Federal 
"(D publishing in the Federal Register draft criteria and, no 
Register, 
later than six months after the date of the enactment of this 
publication. 
section, following a public comment period, final criteria, for the 
selection of recipients of assistance under subsection (b) (1) and 
(2); 
Reports. 
"(2) monitoring how technologies developed in its research 
program are used, and reporting annually to the Congress on the 
extent of any overseas transfer of these technologies; 
Contracts. 
"(3) establishing procedures regarding financial reporting and 
auditing to ensure that contracts and awards are used for the 
purposes specified in this section, are in accordance with sound 
accounting practices, and are not funding existing or planned 
research programs that would be conducted in the same time 
period in the absence of financial assistance under the Program; 
"(4) assuring that the advice of the Committee established 
under section 10 is considered routinely in carrying out the 
responsibilities of the Institute; and 
"(5) providing for appropriate dissemination of Program 
research results. 
Contracts. 
"(d) When entering into contracts or making awards under subsec-
tion (b), the following shall apply: 
"(1) No contract or award may be made until the research 
project in question has been subject to a merit review, and has, 
in the opinion of the reviewers appointed by the Director and 
the Secretary, acting through the Director, been shown to have 
scientific and technical merit. 
"(2) In the case of joint ventures, the Program shall not make 
an award unless, in the judgnient of the Secretary, acting 
through the Director, Federal aid is needed if the industry in 
question is to form a joint venture quickly. 
"(3) No Federal contract or cooperative agreement under 
subsection 0)X2) shall exceed $2,000,000 over 3 years, or be for 
more than 3 years unless a full and complete explanation of 
such proposed award, including reasons for exceeding these 
limits, is submitted in writing by the Secretary to the Commit-
tee on Commerce, Science, and Transportation of the Senate 
and the Committee on Science, Space, and Technology of the 
House of Representatives. The proposed contract or cooperative 
agreement may be executed only after 30 calendar days on 
which both Houses of Congress are in session have elapsed since 
such submission. Federal funds made available under subsec-
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1441 
tion (bX2) shall be used only for direct costs and not for indirect 
costs, profits, or management fees of the contractor. 
"(4) In determining whether to make an award to a particular 
joint venture, the Program shall consider whether the members 
of the joint venture have made provisions for the appropriate 
participation of small United States businesses in such joint 
venture. 
"(5) Section 552 of title 5, United States Code, shall not apply 
to ^ e following information obtained by the Federal Govern-
ment on a confidential basis in connection with the activities of 
any business or any joint venture receiving funding under the 
Program— 
"(A) information on the business operation of any 
member of the business or joint venture; and 
"(B) tiade secrets possessed by any business or any 
member of the joint venture. 
"(6) Intellectual property owned and developed by any busi-
ness or joint ventiu« receiving funding or by any member of 
such a joint venture may not be disclosed by any officer or 
employee of the Federal Government except in accordance with 
« written agreement between the owner or developer and the 
Program. 
"Cf) The Federal Government shall be entitled to a share of 
the licensing fees and royalty payments made to and retained 
by any business or joint venture to which it contributes under 
this section in an amount proportional to the Federal share of 
the costs incurred by the business or joint venture as deter-
mined by independent audit. 
"(8) If a business or joint venture fails before the completion 
of the period for which a contract or award has been made, after 
all allowable costs have been paid and appropriate audits con-
ducted, the unspent balance of the Federal funds shall be 
returned by the recipient to the Pn^ram. 
"(9) Upon dissolution of any joint venture or at the time 
otherwise agreed upon, the Federal Government shall be enti-
tled to a share of the residual assets of the joint venture 
proportional to the Federal share of the costs of the joint 
venture as determined by independent audit. 
"(e) As used in this section, the term 'joint research and develop-
ment venture' has the meaning given to such term in section 2(aX6) 
of the National Cooperative Research Act of 1984 (15 U.S.C. 
4301(aX6)).". 
(b) VismNG COMMITTEE ON ADVANCED TBCHNOIJOGY.—Section 10 
of the Act of March 3,1901, is amended to read as follows: 
Clsissified 
information. 
Copyrights. 
Patents and 
trademarks. 
Classified 
information. 
VISITING OOMMirTEE ON ADVANCED TECHNOLOGY 
"SEC. 10. (a) There is established within the Institute a Visiting 
Committee on Advanced Technology (hereafter in this Act referred 
to as the 'Committee'). The CJommittee shall consist of nine members 
appointed by the Director, at least five of whom shall be from 
United States industry. The Director shall appoint as original mem-
bers of the Committee any final members of the National Bureau of 
Standards Visiting Committee who wish to serve in such capacity. 
In addition to any powers and functions otherwise granted to it by 
this Act, the Committee shall review and make recommendations 
r^arding general policy for the Institute, its organization, its 
Establishment. 
15 u s e 278. 
102 STAT. 1442 
PUBLIC LAW 100-418—AUG. 23, 1988 
budget, and its programs- within the framework of applicable na-
tional policies as set forth by the President and the Congress. 
"(b) TTie persons appointed as members of the Committee— 
"(1) shall be eminent in fields such as business, research, new 
product development, engineering, labor, education, manage-
ment consulting, environment, and international relations; 
"(2) shall be selected solely on the basis of established records 
of distinguished service; 
"(3) shall not be employees of the Federal Government; and 
"(4) shall be so selected as to provide representation of a 
cross-section of the traditional and emerging United States 
industries. 
The Director is requested, in making appointments of persons as 
members of the Committee, to give due consideration to any rec-
ommendations which may be submitted to the Director by the 
National Academies, professional societies, business associations, 
labor associations, and other appropriate organizations. 
"(cXD The term of office of each member of the Committee, other 
than the original members, shall be 3 years; except that any 
member appointed to fill a vacancy occurring prior to the expiration 
of the term for which his predecessor was appointed shall be ap-
pointed for the remainder of such term. Any person who has com-
pleted two consecutive full terms of service on the Committee shall 
thereafter be ineligible for appointment during the one-year period 
following the expiration of the second such term. 
"(2) The original members of the Committee shall be elected to 
three classes of three members each; one class shall have a term of 
one year, one a term of two years, and the other a term of three 
years. 
"(d) The (Committee shall meet at least quarterly at the call of the 
Chairman or whenever one-third of the members so request in 
writing. A majority of the members of the Committee not having a 
conflict of interest in the matter being considered by the Committee 
shall constitute a quorum. Each member shall be given appropriate 
notice, whenever possible, not less than 15 days prior to any meet-
ing, of the call of such meeting. 
(e) The Committee shall have an executive committee, and may 
delegate to it or to the Secretary such of the powers and functions 
granted to the Committee by this Act as it deems appropriate. The 
dlommittee is authorized to appoint &om among; its. members such 
"" other committees as it deems necessary, and to assign to committees 
so appointed such survey and advisory functions as the Committee 
deems appropriate to assist it in exercising its powers and functions 
under this Act. 
"(f) The election of the Chairman and Vice Chairman of the 
Committee shall take place at each annual meeting occurring in an 
even-numbered year. The Vice Chairman shall perform the duties of 
the Chairman in his absence. In case a vacancy occurs in the 
chairmanship or vice chairmanship, the Committee shall elect a 
member to fill such vacancy. 
"(g) The Committee may, with the concurrence of a mayority of its 
members, permit the appointment of a staff consisting of not more 
than four professional staff members and such clerical staff mem-
bers as may be necessary. Such staff shall be appointed by the 
Director, after consultation with the Chairman of the Committee, 
and assigned at the direction of the Committee. The professional 
members of such staff may be appointed without regard to the 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1443 
Reports. 
Contracts. 
15 u s e 278n 
note. 
provisions of title 5, United States Code, governing appointments in 
the competitive service and the provisions of chapter 51 of title 5 of 
such Code relating to classification, and compensated at a rate not 
exceeding the appropriate rate provided for individuals in grade GS-
18 of the General Schedule under section 5332 of title 5 of such Code, 
as may be necessary to provide for the performance of such duties as 
may be prescribed by the Committee in connection with the exercise 
of its powers and functions under this Act. 
"(hXD The Committee shall render an annual report to the Sec- Reports 
retary for submission to the Congress on or before January 31 in 
each year. Such report shall deal essentially, though not necessarily 
exclusively, with policy issues or matters which affect the Institute, 
including the Program established under section 28, or with which 
the Committee in its official role as the private sector policy advisor 
of the Institute is concerned. Each such report shall identify areas of 
research and research techniques of the Institute of potential impor-
tance to the long-term competitiveness of United States industry, in 
which the Institute possesses special competence, which could be 
used to assist United States enterprises and United States industrial 
joint research and development ventures. 
"(2) The Committee shall render to the Secretary and the Con-
gress such additional reports on specific policy matters as it deems 
appropriate.". 
(c) NATIONAL ACADEMIES OF SCIENCES AND ENGINEERING STUDY OF 
GOVERNMENT-INDUSTRY COOPERATION IN CIVIUAN TECHNOLOGY.—(1) 
Within 90 days after the date of enactment of this Act, the Secretary 
of Commerce shall enter into contracts with the National Academies 
of Sciences and Engineering for a thorough review of the various 
types of arrangements under which the private sector in the United 
States and the Federal Government cooperate in civilian research 
and technology transfer, including activities to create or apply 
generic, nonproprietary technologies. The purpose of the review is to 
provide the Secretary and Congress with objective information 
regarding the uses, strengths, and limitations of the various types of 
cooperative technology arrangements that have been used in the 
United States. The review is to provide both an analysis of the ways 
in which these arrangements can help improve the technological 
performemce and international competitiveness of United States 
industry, and also to provide the Academies' recommendations 
regarding ways to improve the effectiveness and efficiency of these 
types of cooperative arrangements. A special emphasis shall be 
placed on discussions of these subjects among industry leaders, labor 
leaders, and officials of the executive branch and Congress. The 
Secretary is authorized to seek and accept funding for this study 
from both Federal agencies and private industry. 
(2) The members of the review panel shall be drawn from among 
industry and labor leaders, entrepreneurs, former government offi-
cials with great experience in civilian research and technology, and 
scientific and technical experts, including experts with experience 
with Federal laboratories. 
(3) The review shall analyze the strengths and weaknesses of 
different t)rpes of Federal-industry cooperative arrangements in 
civilian technology, including but not limited to— 
(A) Federal programs which provide technical services and 
information to United States companies; 
102 STAT. 1444 
PUBLIC LAW 100-418—AUG. 23, 1988 
(B) cooperation between Federal laboratories and United 
States companies, including activities under the Technology 
Share Program created by Executive Order 12591; 
(C) Federal research and technology transfer arrangements 
with selected business sectors; 
(D) Federal encouragement of, and assistance to, private joint 
research and development ventures; and 
(E) such other mechanisms of Federal-industry cooperation as 
may be identified by the Secretary. 
Reports. 
(4) A report based on the findings and recommendations of the 
review panel shall be submitted to the Secretary, the President, and 
Congress within 18 months after the Secretary si^s the contracts 
with the National Academies of Sciences and Engineering. 
Subpart D—Technology Reviews 
SEC. 5141. REPORT OF PRESIDENT. 
The President shall, at the time of submission of the budget 
request for fiscal year 1990 to Congress, also submit to the Congress 
a report on— 
(1) the President's policies and budget proposals regarding 
Federal research in semiconductors and semiconductor manu-
facturing technology, including a discussion of the respective 
roles of the various Federal departments and agencies in such 
research; 
(2) the President's policies and budget proposals regarding 
Federal research and acquisition policies for fiber optics and 
optical-electronic technologies generally; 
(3) the President's policies and budget prop<^als, identified by 
agency, regarding superconducting materials, including descrip-
tions of research priorities, the scientific and technical barriers 
to commercialization which such research is designed to over-
come, steps taken to ensure coordination among Federal agen-
cies conducting research on superconducting materials, and 
steps taken to consult with private United States industry and 
to ensure that no unnecessary duplication of research exists and 
that all important scientific and technical barriers to the 
commercialization of superconducting materials will be ad-
dressed; and 
(4) the President's policies and budget proposals, identified by 
agency, regarding Federal research to assist United States in-
dustry to develop and apply advanced manufacturing tech-
nologies for the production of durable and nondurable goods. 
National 
SEC. 5142. SEMICONDUCTOR RESEARCH AND DEVELOPMENT. 
Advisory 
^« 
Committee on 
(a) SHORT TTTLE.—This section may be cited as the National 
Semiconductor 
Advisory Committee on Semiconductor Research and Development 
Research and 
Act of 1988". 
Ac^onSr^ 
(b) FINDINGS AND PURPOSES.—(1) The Congress finds and declares 
15 use 4632. 
that— 
(A) semiconductor technology is pla3dng an ever-increasing 
role in United States industrial and commercial products and 
processes, making secure domestic sources of state-of-the-£ut 
semiconductors highly desirable; 
(B) modem weapons systems are highly dependent on leading 
edge semiconductor devices, and it is counter to the nationsd 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1445 
security interest to be heavily dependent upon foreign sources 
for this technology, 
(C) governmental responsibilities related to the semiconductor 
. 
industry are divided among many Federal departments and 
agencies; and 
(D) joint industry-government consideration of semiconductor 
industry problems is needed at this time. 
(2) The purposes of this section are— 
(A) to establish the National Advisory Committee on Semi-
conductors; and 
(B) to assign to such Committee the responsibility for devising 
and promulgating a national semiconductor strategy, including 
research and development, the implementation of which will 
assure the continued leadership of the United States in semi-
conductor technology. 
(c) CREATION OF CoiaoTTEE.—^There is hereby created in the 
executive branch of the Government an independent advisory body 
to be known as the National Advisory Committee on Semiconduc-
tors (hereafter in this section referred to as the "Committee"). 
(d)FuNcnoNS.—(1) The Committee shall— 
(A) collect and analyze information on the needs and capabili-
ties of industry, the Federal Government, and the scientific and 
research communities related to semiconductor technol<^y; 
(B) identify the components of a successful national semi-
conductor strat^QT in accordance with subsection (bX2XB); 
(O analyze options, establish priorities, and rea)mmend roles 
for participants in the national strat^y; 
(D) assess the roles for government and national laboratories 
and other laboratories supported laigely for government pur-
poses in contributing to flie semiconductor technolt^y base of 
the Nation, as well as to access the effective use of the resources 
of United States private industry, United States universities, 
and private-pubUc research and development efforts; and 
(E9 provide results and recommendations to agencies of the 
Federal Government involved in l^islative, policymaking, 
administrative, management, planning, and technology activi-
ties that affect or are part of a national semiconductor strategy, 
and to the industry and other nongovernmental groups or 
oiganizations affected by or contributing to that strat^y. 
(2) In fulfilling this respoMibility, the Committee shall— 
(A) monitor the competitiveness of the United States semi-
conductor technology base; 
(B) determine technical areas where United States semi-
conductor technology is deficient relative to international 
competition; 
(Q identify new or emeiging semiconductor technologies that 
will impact the national defense or United States competitive-
ness or both; 
(D) develop research and development strategies, tactics, and 
plans whose execution will assure United Stat^ semiconductor 
competitiveness; and 
(E) recommend appropriate actions that support the national 
semiconductor strategy. 
(e) MEMBERSHIP AND PROCEDURES.—(IXA) The Committee shall be 
composed of 13 members, 7 of whom shall constitute a quorum. 
(B) The Secretary of Defense, the Secretary of Commerce, the 
Secretary of Energy, the Director of the Omce of Science and 
102 STAT. 1446 
PUBLIC LAW 100-418—AUG. 23, 1988 
President of U.S. 
Reports. 
30 use 1803 
note. 
President of U.S. 
Technology Policy, and the Director of the National Science Founda-
tion, or their designees, shall serve as members of the Committee. 
(C) The President, acting through the Director of the Office of 
Science and Technology Policy, shall appoint, as additional members 
of the Committee, 4 members from outside the Federal Government 
who are eminent in the semiconductor industry, and 4 members 
from outside the Federal Government who are eminent in the fields 
of technology, defense, and economic development. 
(D) One of the members appointed under subparagraph (C), as 
designated by the President at the time of appointment, shall be 
chairman of the Committee. 
(2) Funding and administrative support for the Committee shall 
be provided to the Office of Science and Technology Policy through 
an arrangement with an appropriate agency or organization des-
ignated by the Committee, in accordance with a memorandum of 
understanding entered into between them. 
(3) Members of the Committee, other than full-time employees of 
the Federal Government, while attending meetings of the Commit-
tee or otherwise performing duties at the request of the Chairman 
while away from their homes or regular places of business, shall be 
allowed travel expenses in accordance with subchapter I of chapter 
57 of title 5, United States Code. 
(4) The Chairman shall call the first meeting of the Committee not 
later than 90 days after the date of the enactment of this Act. 
(5) At the close of each fiscal year the Committee shall submit to 
the President and the Congress a report on its activities conducted 
during such year and its planned activities for the coming year, 
including specific findings and recommendations with respect to the 
national semiconductor strategy devised and promulgated under 
subsection (b)(2)(B). The first report shall include an analysis of 
those technical areas, including manufacturing, which are of impor-
tance to the United States semiconductor industry, and shall make 
specific recommendations regarding the appropriate Federal role in 
correcting any deficiencies identified by the analysis. Each report 
shall include an estimate of the length of time the Committee must 
continue before the achievement of its purposes and the issuance of 
its final report. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated to carry out the purposes of this section such sums 
as may be necessary for the fiscal years 1988, 1989, and 1990. 
SEC. 5143. REVIEW OF RESEARCH AND DEVELOPMENT PRIORITIES IN 
SUPERCONDUCTORS. 
(a) NATIONAL COMMISSION ON SUPERCONDUCTIVITY.—The President 
shall appoint a National Commission on Superconductivity to 
review all major policy issues regarding United States applications 
of recent research advances in superconductors in order to assist the 
Congress in devising a national strategy, including research and 
development priorities, the development of which will assure United 
States 
leadership 
in 
the 
development 
and 
application 
of 
superconducting technologies. 
O
b
) MEMBERSHIP.—The membership of the National Commission 
on Superconductivity shall include representatives of— 
(1) the National Critical Materials Council, the National 
Academy of Sciences, the National Academy of Engineering, the 
National Science Foundation, the National Aeronautics and 
Space Administration, the Department of Energy, the Depart-
'*te!*S«*--
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1447 
merit of Justice, the Department of Commerce (including the 
National Institute of Standards and Technology), the Depart-
ment of Transportation, the Department of the Treasury, and 
the Department of Defense; 
(2) organizations whose membership is comprised of physi-
cists, engineers, chemical scientists, or material scientists; and 
(3) industries, universities, and national laboratories engaged 
in superconductivity research. 
(c) CHAIRMAN.—A representative of the private sector shall be 
designated as chairman of the Commission. 
(d) COORDINATION.—The National Critical Materials Council shall 
be the coordinating body of the National Commission on 
Superconductivity and shall 
provide 
staff 
support for the 
Commission. 
(e) REPORT.—Within 6 months after the date of the enactment of 
this Act, the National Commission on Superconductivity shall 
submit a report to the President and the Congress with 
recommendations regarding methods of enhancing the research, 
development, and implementation of improved superconductor 
technologies in all major applications. 
(f) SCOPE OF REVIEW,—In preparing the report required by subsec-
tion (e), the Commission shall consider addressing, but need not 
limit, its review to— 
(1) the state of United States competitiveness in the develop-
ment of improved superconductors; 
(2) methods to improve and coordinate the collection and 
dissemination of research data relating to superconductivity; 
(3) methods to improve and coordinate funding of research 
and development of improved superconductors; 
(4) methods to improve and coordinate the development of 
viable commercial and military applications of improved 
superconductors; 
(5) foreign government activities designed to promote re-
search, development, and commercial application of improved 
superconductors; 
(6) the need to provide increased Federal funding of research 
and development of improved superconductors; 
(7) the impact on the United States national security if the 
United 
States 
must 
rely 
on 
foreign 
producers 
of 
superconductors; 
(8) the benefit, if any, of granting private companies partial 
exemptions from United States antitrust laws to allow them to 
coordinate research, development, and products containing im-
proved superconductors; 
(9) options for providing income tax incentives for encourag-
ing research, development, and production in the United States 
of products containing improved superconductors; and 
(10) methods to strengthen domestic patent and trademark 
laws to ensure that qualified superconductivity discoveries re-
ceive the fullest protection from infringement. 
(g) SUNSET.—The Commission shall disband within a year of its 
establishment. Thereafter the National Critical Materials Council 
may review and update the report required by subsection (e) and 
make further recommendations as it deems appropriate. 
102 STAT. 1448 
PUBLIC LAW 100-418—AUG. 23, 1988 
Subpart E—Authorization of Appropriations 
SEC. 5151. AUTHORIZATION OF APPROPRIATIONS FOR TECHNOLOGY 
ACTIVITIES. 
(a) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated for fiscal year 1988 to the Secretary of CJommerce to 
carry out activities performed by the Institute the sums set forth in 
the following line items: 
(1) Measurement Research and Technology: $41,939,000. 
(2) 
Engineering 
Measurements 
and 
Manufacturing: 
$40,287,000. 
(3) Materials Science and Engineering: $23,521,000. 
(4) Computer Science and Technology: $7,941,000. 
(5) Research Support Activities: $19,595,000. 
(6) Cold Neutron Source Facility: $6,500,000 (for a total 
authorization of $13,000,000). 
(7) Programs established under sections 25, 26, and 27 of the 
Act of March 3, 1901 and section 5121 of this part: $5,000,000. 
0)) LIMITATIONS.—Notwithstanding any other provision of this or 
any other Act— 
(1) of the total of the amounts authorized under subsection (a), 
$2,000,000 is authorized only for steel technology; 
(2) of the amount authorized under paragraph (1) of subsec-
tion (a) of this section, $3,550,000 is authorized only for the 
purpose of research in process and quality control; 
(3) of the amount authorized under paragraph (2) of subsec-
tion (a) of this section, $3,710,000 is authorized only for the 
Center for Building Technology, $5,662,000 is authorized only 
for the Center for Fire Research, and the two Centers shall not 
be merged; 
(4) of the amount authorized under paragraph (3) of subsec-
tion (a) of this section, $1,500,000 is authorized only for the 
purpose of research to improve high-performance composites; 
and 
(5) of the amount authorized under paragraph (5) of subsec-
tion (a) of this section, $7,371,000 is authorized only for technical 
competence fund projects in new areas of high technical impor-
tance, and $1,091,000 is authorized only for the Postdoctoral 
Research Associates Program and related new personnel. 
(c) TRANSFER.—-(1) Funds may be transferred among the line items 
listed in subsection (a) of this section so long as the net funds 
transferred to or from any line item do not exceed 10 percent of the 
amount authorized for that line item in such subsection and the 
Committee on Commerce, Science, and Transportation of the Senate 
and the Committee on Science, Space, and Technology of the House 
of Representatives are notified in advance of any such transfer. 
(2) In addition, the Secretary of Commerce may propose transfers 
to or from any line item exceeding 10 percent of the amount 
authorized for the line item in subsection (a) of this section, but a 
full and complete explanation of any such proposed transfer and the 
reason for such transfer must be transmitted in writing to the 
President of the Senate, the Speaker of the House of Representa-
tives, and the appropriate authorizing committees of the Senate and 
House of Representatives. The proposed transfer may be made only 
when 30 calendar days have passed after the transmission of such 
written explanation. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1449 
(d) COLD NEUTRON SOURCE FACILITY.—^In addition to any sums 
otherwise authorized by this part, there are authorized to be appro-
priated to the Secretary of Commerce for fiscal years 1988,1989, and 
1990 such sums as were authorized but not appropriated for the Cold 
Neutron Source Facility for fiscal year 1987. Furthermore, the 
Secretary may accept contributions for funds, to remain available 
until expended, for the design, construction, and equipment of the 
Cold Neutron Source Facility, notwithstanding the limitations of 
section 14 of the Act of March 3,1901 (15 U.S.C. 278d). 
(e) E
^
M
P
L
O
T
E
E BENEFIT ADJUSTMENTS.—^In addition to any sums 
otherwise authorized by this part, there are authorized to be appro-
priated to the Secretary of Commerce for fiscal year 1988 such 
additional sums as may be necessary to make any adjustments in 
salary, pay, retirement, and other employee benefits which may be 
provided for by law. 
(f) AVAILABILITY.—^Appropriations made under the authority pro-
vided in this section shall remain available for obligation, for 
expenditure, or for obligations and expenditure for periods specified 
in the Acts making such appropriations. 
SEC 5152. STEVENSON-WYDLER ACT AUTHORIZATIONS. 
Section 19 (a) and (b) of the Stevenson-Wydler Technolc^y Innova-
tion Act of 1980, as so redesignated by section 5122(aXl) of this part, 
is amended to read as follows: 
"(aXD There is authorized to be appropriated to the Secretary for 
the purposes of carrying out sections 5,11(g), and 16 of this Act not 
to exceed $3,400,000 for the fiscal year ending September 30, 1988. 
"(2) Of the amount authorized under paragraph (1) of this subsec-
tion, $2,400,000 is authorized only for the Office of Productivity, 
Technology, and Innovation; $500,000 is authorized only for the 
purpose of carrying out the requirements of the Japanese technical 
literature program established under section 5(d) of this Act; and 
$500,000 is authorized only for the patent licensing activities of the 
National Technical Information Service. 
"(b) In addition to the authorization of appropriations provided 
under subsection (a) of this section, there is authorized to be appro-
priated to the Secretary for the purposes of carrying out section 6 of 
this Act not to exceed $500,000 for the fiscal year ending September 
30, 1988, $1,000,000 for the fiscal year ending September 30, 1989, 
and $1,500,000 for the fiscal year ending September 30, 1990.". 
Subpart F—^Miscellaneous Technology and Commerce 
Provisions 
Gifts and 
property. 
15 use 3713. 
SEC 5161. SAVINGS PROVISION AND USER FEES. 
The Act of March 3, 1901 (15 U.S.C- 271 et seq.), as amended by 
this part, is further amended by adding after section 28 the follow-
ing new sections: 
"SAVINGS PROVISION 
"SEC. 29. All rules and r^ulations, determinations, standards, 
contracts, certifications, authorizations, delegations, results and 
findings of investigations, or other actions duly issued, made, or 
taken by or pursuant to this Act, or under the authority of any other 
statutes which resulted in the assignment of functions or activities 
to the Secretary, the Department, the Director, or the Institute, as 
Contracts. 
15 use 271 note. 
102 STAT. 1450 
PUBLIC LAW 100-418—AUG. 23, 1988 
are in effect immediately before the date of enactment of this 
section, and not suspended by the Secretary, the Director, the 
Institute or the courts, shall continue in full force and effect after 
the date of enactment of this section until modified or rescinded. 
"USER FEES 
15 use 278o. 
"SEC. 30. The Institute shall not implement a policy of charging 
fees with respect to the use of Institute research facilities by 
research associates in the absence of express statutory authority to 
charge such fees.". 
SEC. 5162. MISCELLANEOUS AMENDMENTS T
O THE STEVENSON-WYDLER 
ACT. 
(a) INVENTION MANAGEMENT SERVICES.—The first sentence of sec-
tion 14(aX4) of the Stevenson-Wydler Technology Innovation Act of 
1980, as so redesignated by section 5122(aXl) of this part (15 U.S.C. 
3710c) is amended by striking out "shall" and inserting in lieu 
thereof "may", and by striking out "such invention performed at the 
request of the other agency or laboratory" and inserting in lieu 
thereof "any invention of the other agency . 
0)) FEDERAL LABORATORY Ck)NSORTiUM.—Section ll(eX7XA) of the 
Stevenson-Wydler Technology Innovation Act of 1980, as so redesig-
nated by section 5122(aXl) of this part (15 U.S.C. 3710) is amended by 
striking out "0.005 percent of that portion of the research and 
development budget of each Federal agency that is to be utilized by" 
and inserting in lieu thereof "0.008 percent of the budget of each 
Federal agency from any Federal source, including related over-
head, that is to be utilized by or on behalf of'. 
SEC. 5163. MISCELLANEOUS TECHNOLOGY AND COMMERCE PROVISIONS. 
15 use 282a. 
(a) ASSESSMENT OF EMERGING TECHNOLOGIES.—The Board 
of 
Assessment of the National Institute of Standards and Technology 
shall include, as part of its annual review, an assessment of emerg-
ing technologies which are expected to require research in metrol-
ogy to keep the Institute abreast of its mission, including process 
and quality control, engineering databases, advanced materials, 
electronics and fiber optics, bioprocess engineering, and advanced 
computing concepts. Such review shall include estimates of the cost 
of the required effort, required staffing levels, appropriate inter-
action with industry, including technology transfer, and the period 
over which the research will be required. 
15 use 272 note. 
(b) SMALL BUSINESS PLAN.—The Director of the National Institute 
of Standards and Technology shall prepare a plan detailing the 
manner in which the Institute will make small businesses more 
aware of the Institute's activities and research, and the manner in 
which the Institute will seek to increeise the application by small 
businesses of the Institute's research, particularly in manufactur-
ing. The plan shall be submitted to the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on 
Science, Space, and Technology of the House of Representatives not 
later than 12() days after the date of the enactment of this Act. 
(c) NATIONAL TECHNICAL INFORMATION SERVICE.—(1) Section 11 of 
the Stevenson-Wydler Technology Innovation Act of 1980, as so 
15 use 3710. 
redesignated by section 5122(aXl) of this part, is amended by insert-
ing at the end the following new subsection: 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1451 
"(h) None of the activities or functions of the National Technical Contracts. 
Information Service which are not performed by contractors as of 
September 30,1987, shall be contracted out or otherwise transferred 
from the Federal Government unless such transfer is expressly 
authorized by statute, or unless the value of all work performed 
under the contract and related contracts in each fiscal year does not 
exceed $250,000.". 
(2) The Secretary of Commerce shall report the Secretary's rec- Reports. 
ommendations for improvements in the National Technical 
Information Service (including methods for automating document 
distribution and inventory control), and any statutory changes 
required to make such improvements, to the Ck)mmittee on Com-
merce, Science, and Transportation of the Senate and the Commit-
tee on Science, Space, and Technology of the House of Representa-
tives by January 31,1989. 
(3) Section 11(d) of the Stevenson-Wydler Technoli^y Innovation 
Act of 1980, as so redesignated by section 5122(aXl) of this part, is 15 use 37io. 
amended— 
(A) by striking "and" at the end of paragraph (4); 
(B) by striking the period at the end of paragraph (5) and 
inserting in lieu thereof "; and"; and 
iO by adding at the end thereof the following new paragraph: 
"(6) maintain a permanent archival repository and clearing-
house for the collection and dissemination of nonclassified sci-
entific, technical, and engineering information.", 
(d) FELLOWSHIP PROGRAM.—There is established within the 15 use 1533. 
Department of Commerce a Commerce, Science, and Technology 
Fellowship Program with the stated purpose of providing a select 
group of employees of the executive branch of the Government vdth 
the opportunity of learning how the l^islative branch and other 
parts of the executive branch function through work experiences of 
up to one year. The Secretary of (Commerce shall report to the Reports. 
Congress within six months after the date of enactment of this Act 
on tbe Department of Commerce's plans for implementing such 
Program by March 31,1989. 
SEC 5164. METRIC USAGE. 
(a) FINDINGS.—Section 2 of the Metric Conversion Act of 1975 is 15 use 205a. 
amended by adding at the end thereof the following new 
paragraphs: 
"(3) World trade is increasingly geared towards the metric 
system of measurement. 
"(4) Industry in the United States is often at a competitive 
disadvantage when dealing in international markets because of 
its nonstandard measurement system, and is sometimes ex-
cluded when it is unable to deliver goods which are measured in 
metric terms. 
"(5) The inherent simplicity of the metric system of measure-
ment and standardization of weights and measures has led to 
major cost savings in certain industries which have converted to 
that system. 
"(6) The Federal Government has a responsibility to develop 
procedures and techniques to assist industry, especially small 
business, as it voluntarily converts to the metric system of 
measurement. 
102 STAT. 1452 
PUBLIC LAW 100-418—AUG. 23, 1988 
15 use 205b. 
15 use 205k. 
Reports. 
15 use 205J-1. 
"(7) The metric system of measurement can provide sub-
stantial advantages to the Federal Government in its own 
operations.". 
(b) PoucY.—Section 3 of the Metric (Conversion Act of 1975 is 
amended to read as follows: 
"SEC. 3. It is therefore the declared policy of the United States— 
"(1) to designate the metric system of measurement as the 
preferred system of weights and measures for United States 
trade and commerce; 
"(2) to require that each Federal agency, by a date certain and 
to the extent economically feasible by the end of the fiscal year 
1992, use the metric system of measurement in its procure-
ments, grants, and other business-related activities, except to 
the extent that such use is impractical or is likely to cause 
significant inefficiencies or loss of markets to United States 
firms, such as when foreign competitors are producing compet-
ing products in non-metric units; 
"(3) to seek out ways to increase understanding of the metric 
system of measurement through educational information and 
guidance and in Government publications; and 
"(4) to permit the continued use of traditional systems of 
weights and measures in nonbusiness activities.". 
(c) IMPLEMENTATION.—The Metric Conversion Act of 1975 is fur-
ther amended by redesignating section 12 as section 13, and by 
inserting after section 11 the following new section: 
"SEC. 12. (a) As soon as possible after the date of the enactment of 
this section, each agency of the Federal Government shall establish 
guidelines to carry out the policy set forth in section 3 (with 
particular emphasis upon the policy set forth in paragraph (2) of 
that section), and as part of its annual budget submission for each 
fiscal year beginning after such date shall report to the Congress on 
the actions which it has taken during the previous fiscal year, as 
well as the actions which it plans for the fiscal year involved, to 
implement fully the metric system of measurement in accordance 
with that policy. Such reporting shall cease for an agency in the 
fiscal year after it has fully implemented its efforts under section 
3(2). As used in this section, the term 'agency of the Federal 
Grovernment' means an Executive agency or military department as 
those terms as defined in chapter 1 of title 5, United States Code. 
"(b) At the end of the fiscal year 1992, the Comptroller General 
shall review the implementation of this Act, and upon completion of 
such review shall report his findings to the Congress along with any 
legislative recommendations he may have.". 
PART II—SYMMETRICAL ACCESS TO 
TECHNOLOGICAL RESEARCH 
Copyrights. 
Patents and 
trademarks. 
SEC. 5171. SYMMETRICAL ACCESS TO TECHNOLOGICAL RESEARCH. 
(a) Section 502 of the Foreign Relations Authorization Act, Fiscal 
Year 1979 (22 U.S.C. 2656b) is amended by adding at the end the 
following new paragraph: 
"(5) Federally supported international science and technology 
agreements should be negotiated to ensure that— 
"(A) intellectual property rights are properly protected; 
and 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1453 
"(B) access to research and development opportunities 
and facilities, and the flow of scientific and technological 
information, are, to the maximum extent practicable, equi-
table and reciprocfid.". 
(b) Section 5030t)) of the Foreign Relations Authorization Act, 
Fiscal Year 1979 (22 U.S.C. 2656c(b)) is amended— 
(1) by striking "Congress" and inserting in lieu thereof "the 
Speaker of the House of Representatives and the Committees on 
Foreign Relations and Governmental Affairs of the Senate"; 
(2) by inserting "information and" before "recommenda-
tions"; 
(3) by striking "and" at the end of paragraph (1); 
(4) by striking the period at the end of paragraph (2) and 
inserting in lieu thereof "; and"; and 
(5) by adding at the end the following new paragraph: 
"(3) equity of access by United States public and private 
entities to public (and publicly supported private) research and 
development opportunities and faculties in each country which 
is a major trading partner of the United States.". 
(c) Section 503 of the Foreign Relations Authorization Act, Fiscal 
Year 1979 (22 U.S.C. 2656c) is amended by adding at the end the 
following new subsection: 
"(dXD The information and recommendations developed under 
subsection (bX3) shall be made available to the United States Trade 
Representative for use in his consultations with Federal agencies 
pursuant to Executive orders pertaining to the transfer of science 
and technology. 
"(2) In providing such information and recommendations, the President of U.S. 
President shall utilize information developed by any Federal depart-
ments, agencies, or interagency committees as he may consider 
necessary.". 
(d) Section 504(a) of the Foreign Relations Authorization Act, 
Fiscal Year 1979 (22 U.S.C. 2656d(a)) is amended to read as follows: 
"(aXl) In order to implement the policies set forth in section 502 of 
this title, the Secretary of State (hereadfter in this section referred to 
as the "Secretary") shall have primary responsibility for coordina-
tion and oversight with respect to all major science or science and 
technolc^ agreements and activities between the United States and 
foreign countries, international orgemizations, or commissions of 
which the United States and one or more foreign countries are 
members. 
"(2) In coordinating and overseeing such agreements and activi-
ties, the Secretary shall consider (A) scientific merit; (B) equity of 
access as described in section 503(b); (C) possible commercial or trade 
linkages with the United States which may flow from the agreement 
or activity; (D) national security concerns; and (E) any other factors 
deemed appropriate. 
"(3) Prior to entering into negotiations on such an agreement or 
activity, the Secretary shall provide Federal agencies which have 
primary responsibility for, or substantial interest in, the subject 
matter of the agreement or activity, including those agencies 
responsible for— 
"(A) Federal technology management policies set forth by 
Public Law 96-517 and the Stevenson-Wydler Technology 
Innovation Act of 1980; 
"(B) national security policies; 
Defense and 
"(C) United States trade policies; and 
national 
"^ 
security. 
19-194 O-91-Part 2 
15 : QL ; 
102 STAT. 1454 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(D) relevant Executive orders, 
with an opportunity to review the proposed agreement or activity to 
ensure its consistency with such policies and Elxecutive orders, and 
to ensure effective interagency coordination/'. 
PART III—NATIONAL CRITICAL MATERIALS 
COUNaL 
30 use 1804 
note. 
30 use 1807 
note. 
30 use 1809. 
30 use 1810. 
eompetitiveness 
Policy eouncil 
Act. 
SEC 5181. THE NATIONAL FEDERAL PROGRAM PLAN FOR ADVANCED 
MATERIALS RESEARCH AND DEVELOPMENT. 
The National Critical Materials Council shall prepare the na-
tional Federal program plan for advanced materials research and 
development under section 205(aXlXA) of the National Critical 
Materials Act of 1984 (Public Law 98-373; 98 Stat. 1251) and shall 
submit such plan to Congress not later than 180 days after the date 
of the enactment of this Act The plan shall be submitted to the 
Committee on Science, Space, and Technology, as well as other 
appropriate committees, of the House of Representatives, and to the 
Ck>mmittee on Governmental Affairs, as well as other appropriate 
oonunittees, of the Senate. 
SEC 5182. PERSONNEL MATTERS. 
(a) RBQUISEMENT TO iNCimASE STAFF.—^Not later than 30 days 
after the date of the enactment of this Act, the Executive Director of 
the National Critical Materials Council shall increase the number of 
employees of the Council by the equivalent of 5 full-time employees 
over tiie number of employees of the Council on the date of the 
enactment of this Act 
(b) QUALIFICATIONS OF STAFF.—Not less than the equivalent of 4 
full-time employees appointed pursuant to subsection (a) shall be 
permanent professional employees who have expertise in technical 
fields that are relevant to the responsibilities of the National Criti-
cal Materials Council, such as materials science and engineering, 
environmental matters, minerals and natural resources, ceramic or 
composite engineering, metallurgy, and geology. 
SEC 5183. ACTHORITT TO ACCEPT SERVICES AND PERSONNEL FROM 
OTHER FEDERAL AGENCIES. 
Section 21(K4) of the National Critical Materials Act of 1984 
(PubUc Law 98-373; 98 Stat 1254) is amended by striking out 
"reimbursable" and inserting in lieu thereof "nonreimbursable". 
SEC 5184. AUTHORIZATION OF APPROPRIATIONS. 
Section 211 of the National Critical Materials Act of 1984 (Public 
Law 98-373; 98 Stat 1254) is amended by striking out "1990" and 
inserting in lieu thereof "1992". 
Subtitle C—Competitiyeness Policy Council 
Act 
15 use 4801 
note. 
SEC 5201. SHORT TITLE. 
This subtitle may be cited as the "(Competitiveness Policy Council 
Act". 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1455 
SEC. 5202. FINDINGS AND PURPOSES. 
15 USC 4801. 
(a) FINDINGS.—The Congress finds that— 
(1) efforts to reverse the decline of United States industry has 
been hindered by— 
(A) a serious erosion in the institutions and policies which 
foster United States competitiveness including a lack of 
high quality domestic and international economic and sci-
entific data needed to— 
(i) reveal sectoral strengths eind weaknesses; 
(ii) identify potential new markets and future techno-
lo^cal and economic trends; and 
(iii) provide necessary information regarding the 
competitive strategies of foreign competitors; 
(B) the lack of a coherent and consistent government 
competitiveness policy, including policies with respect to— 
(i) international trade, finance, and investment, 
(ii) research, science, and technology, 
(iii) education, labor retraining, and adjustment, 
(iv) macroeconomic and budgetary issues, 
(v) antitrust and regulation, and 
(vi) government procurement; 
(2) the United States economy benefits when business, labor, 
government, academia, and public interest groups work 
together cooperatively; 
(3) the decline of United States economic competitiveness 
endangers the ability of the United States to maintain the 
defense industrial base which is necessary to the national 
security of the United States; 
(4) the world is moving rapidly toward the creation of an 
integrated and interdependent economy, a world economy in 
which the policies of one nation have a major impact on other 
nations; 
(5) integrated solutions to such issues as trade and investment 
research, science, and technology, education, and labor retrain-
ing and adjustments help the United States compete more 
effectively in the world economy; and 
(6) government, business, labor, academia, and public interest 
groups shall cooperate to develop and coordinate long-range 
strategies to help assure the international competitiveness of 
the United States economy. 
(b) PURPOSE.—It is the purpose of this subtitle— 
(1) to develop recommendations for long-range strategies for 
promoting the international competitiveness of the United 
States industries; and 
(2) to establish the Competitiveness Policy Council which 
shall— 
(A) analyze information regarding the competitiveness of 
United States industries and business and trade policy; 
(B) create an institutional forum where national leaders 
with experience and background in business, labor, govern-
ment, academia, and public interest activities shall— 
(i) identify economic problems inhibiting the competi- Agriculture and 
tiveness of United States agriculture, business, and agricultural 
industry; 
commodities. 
(ii) develop long-term strategies to address such prob-
lem; and 
102 STAT. 1456 
PUBLIC LAW 100-418—AUG. 23, 1988 
(C) make recommendations on issues crucial to the devel-
opment of coordinated competitiveness strategies; 
(D) publish analysis in the form of periodic reports and 
recommendations concerning the United States business 
and trade policy-
is use 4802. 
SEC. 5203. C
O
U
N
C
I
L ESTABLISHED. 
There is established the Competitiveness Policy Council (hereafter 
in this subtitle referred to as the "Council"), an advisory committee 
under the provisions of the Federal Advisory Committee Act (5 
U.S.C. App.). 
15 use 4803. 
SEC. 5204. DUTIES OF THE COUNCIL. 
The Council shall— 
(1) develop recommendations for national strategies and on 
specific policies intended to enhance the productivity and inter-
national competitiveness of United States industries; 
(2) provide comments, when appropriate, and through any 
existing comment procedure, on— 
(A) private sector requests for governmental assistance or 
relief, specifically as to whether the applicant is likely, by 
receiving the assistance or relief, to become internationally 
competitive; and 
(B) what actions should be taken by the applicant as a 
condition of such assistance or relief to ensure that the 
applicant is likely to become internationally competitive; 
(3) analyze information concerning current and future United 
States economic competitiveness useful to decision making in 
government and industry; 
(4) create a forum where national leaders with experience and 
background in business, labor, academia, public interest 
activities, and government shall identify 
and develop 
recommendations to address problems affecting the economic 
competitiveness of the United States; 
(5) evaluate Federal policies, regulations, and unclassified 
international agreement on trade, science, and technology to 
which the United States is a party with respect to the impact on 
United States competitiveness; 
(6) provide policy recommendations to the Congress, the Presi-
dent, and the Federal departments and agencies regarding spe-
cific issues concerning competitiveness strategies; 
(7) monitor the changing nature of research, science, and 
technology in the United States and the changing nature of the 
United States economy and its capacity— 
(A) to provide marketable, high quality goods and services 
in domestic £uid international markets; and 
(B) to respond to international competition; 
(8) identify— 
(A) Federal and private sector resources devoted to 
increased competitiveness; and 
(B) State and local government programs devised to 
enhance competitiveness, including joint ventures between 
universities and corporations; 
(9) establish, when appropriate, subcouncils of public and 
private leaders to develop recommendations on long-term 
strategies for sectors of the economy and for specific competi-
tiveness issues; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1457 
(10) review policy recommendations developed by the 
subcouncils and transmit such recommendations to the Federal 
agencies responsible for the implementation of such rec-
ommendations; 
(11) prepare, publish, and distribute reports containing the 
recommendations of the Council; smd 
(12) publish their analysis and recommendations in the form Reports. 
of an annual report to the President and the Congress which 
also comments on the overall competitiveness of the American 
economy. 
SEC. 5205. MEMBERSHIP. 
15 USC 4804. 
(a) COMPOSITION AND REPRESENTATION.— 
(1) The (Douncil shall consist of 12 members, of whom— 
(A) four members shall be appointed by the President, of 
whom— 
(i) one shall be a national leader with experience and 
background in business; 
(ii) one shall be a national leader with experience and 
background in the labor community; 
(iii) one shall be a national leader who has been 
active in public interest activities; and 
(iv) one shall be a head of a Federal department or 
agency; 
(B) four members shall be appointed by the majority 
leader and the minority leader of the Senate, acting jointly, 
^ of whom— 
(i) one shall be a national leader with experience or 
background in business; 
(ii) one shall be a nationsd leader with experience and 
background in the labor community; 
(iii) one shall be a national leader with experience 
and background in the academic community; and 
(iv) one shall be a representative of State or local 
government; and 
(C) four members shall be appointed by the Speaker, the 
minority leader of the House of Representatives, acting 
' jointly, of whom— 
(i) one shall be a national leader with experience and 
background in business; 
(ii) one shall be a national leader with experience and 
background in the labor community; 
(iii) one shall be a nationcd leader with experience 
and background in the academic community; and 
(iv) one shall be a representative of State or local 
government. 
(2) In addition to the head of a Federal department or agency 
appointed in accordance with subsection (aXlXA)(iv), other Fed-
eral officials may participate on an ex-officio basis as requested 
by the Council. 
(3) All members of the Council shall be individuals who have 
a broad understanding of the United States economy and the 
United States competitive position internationally. 
(4) Not more than 6 members of the Council shall be members 
of the same political party. 
(b) INPHAL APPOINTMENTS.—The initial members of the Council 
shall be appointed within 30 days after January 21,1989. 
102 STAT. 1458 
PUBLIC LAW 100-418—AUG. 23, 1988 
(c) VACANCIES.— 
(1) A vacancy on the Council shall be filled in the same 
manner in which the original appointment was made. 
(2) Any member appointed to fill a vacancy on the Council 
'• 
occurring before the expiration of the term for which the prede-
cessor of such member was appointed shall be appointed only 
' 
for the remainder of such term. 
(3) A member of the Council may serve after the expiration of 
the term of such member until the successor of such member 
has taken office. 
(d) REMOVAL.—^Members of the Council may be removed only for 
malfeasance in office. 
(e) CoNFUCT OF INTEREST.— 
(1) A member of the Council may not serve as an agent for a 
foreign principal. 
(2) Members of the Council shall be required to file a financial 
disclosure report under title II of the Ethics in Government Act 
of 1978 (Public Law 95-521), except that such reports shall be 
held confidential and exempt from any law otherwise requiring 
their public disclosure. 
(3) Members of the Council shall be deemed to be special 
(jovemment employees, as defined in section 202 of title 18, 
United States Code, for purposes of sections 201, 202, 203, 205, 
and 208 of such title. 
(f) COICPENSATION.— 
(1) Each member of the Council who is not employed by the 
Federal Government or any State or local government— 
(A) shall be compensated at a rate equal to the daily 
equivalent of the rate for GS-18 of the General Schedule 
pursuant to section 5332 of title 5, United States Code, for 
each day such member is engaged in duties as a member of 
the Council; and 
(B) shall be paid actual travel expenses, and per diem in 
lieu of subsistence expenses when away from the usual 
place of residence of such member, in accordance with 
section 5703 of such title. 
(2) Each member of the Council who is employed by the 
Federal Grovemment or any State or local government shall 
serve on the Council without additional compensation, but 
while engaged in duties as a member of the Council shall be 
paid actual travel expenses, and per diem in lieu of subsistence 
expenses when away from the usual place of residence of such 
member, in accordance with subchapter I of chapter 57 of title 
5, United States Code. 
(g) QUORUM.— 
(1) IN GENERAL.—Seven members of the Council constitute a 
quorum, except that a lesser number may hold hearings if such 
action is approved by a two-thirds vote of the entire Council. 
(2) INITIAL ORGANIZATION.—The Council shall not commence 
its duties until aU the nongovernmental members have been 
appointed and have qualified. 
(h) CHAIRPERSON.—^The Council shall elect, by a two-thirds vote of 
the entire Council, a chairperson from among the nongovernmental 
members. 
(i) MEETINGS.—^The Council shall meet at the call of the chair-
person or a majority of the members. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1459 
(j) PoucY ACTIONS.—Except as provided in subsection (g), no 
action establishing policy shall be taken by the Council unless 
approved by two-thirds of the entire membership of the Council. 
(k) ALTERNATE MEMBERS.— 
(1) Each member of the Council shall designate one alternate 
representative to attend any meeting that such member is 
unable to attend. 
(2) In the course of attending any such meeting, an alternate 
representative shall be considered a member of the Council for 
all purposes, except for voting. 
(1) EXPERTS AND CONSULTANTS.—The Council may procure tem-
porary and intermittent services under section 3109(b) of title 5, 
United States Code, but at rates for individuals not to exceed the 
daily equivalent of the maximum annual rate of basic pay for GS-16 
of the General Schedule. 
(m) DETAILS.—Upon request of the Council, the head of any other 
Federal agency is authorized to detail, on a reimbursable basis, any 
of the personnel of such agency to the Council to assist the Council 
in carrying out its duties under this subtitle. 
SEC. 5206. EXECUTIVE DIRECTOR AND STAFF. 
(a) EXECUTIVE DIRECTOR.— 
(1) The principal administrative officer of the Council shall be 
an Executive Director, who shall be appointed by the Council 
and who shall be paid at a rate not to exceed GS-18 of the 
General Schedule. 
(2) The Executive Director shall serve on a full-time basis. 
(b) STAFF.—(1) Within the limitations of appropriations to the 
Council, the Executive Director may appoint a staff for the Council 
in accordance with the Federal civil service and classification laws. 
(2) The staff of the Council shall be deemed to be special govern-
ment employees as defined in section 202 of title 18, United States 
Code, for purposes of title II of the Ethics in Government Act of 1978 
and sections 201, 202, 203, 205, 207, and 208 of title 18, United States 
Code. 
SEC. 5207. POWERS OF THE COUNCIL. 
(a) HEARINGS.—The Council may, for the purpose of carrying out 
the provisions of this subtitle, hold such hearings, sit and act at such 
times and places, take such testimony, and receive such evidence, as 
the Council considers appropriate. The Council may administer 
oaths or afQrmations to witnesses appearing before the Council. 
(b) INFORMATION.— 
dXA) Except as provided in subparagraph (B), the Council 
may secure directly from any Federal agency information nec-
essary to enable the Council to carry out the provisions of this 
subtitle. Upon request of the chairman of the Council, the head 
of such agency shall promptly furnish such information to the 
Council. 
(B) Subparagraph (A) does not apply to matters that are 
specifically authorized under criteria established by an Execu-
tive order to be kept secret in the interest of national defense or 
foreign policy and are in fact properly classified pursuant to 
such Executive order. 
(2) In any case in which the Council receives £my information 
from a Federal agency, the Council shall not disclose such 
15 use 4805. 
15 use 4806. 
Classified 
information. 
Defense and 
national 
security. 
102 STAT. 1460 
PUBLIC LAW 100-418—AUG. 23, 1988 
Reports. 
Termination 
date. 
information to the public unless such agency is authorized to 
disclose such information pursuant to Federal law. 
(d) CONSULTATION WITH THE PRESIDENT AND THE CONGRESS.—No 
later than 60 days after the initial members are appointed to the 
Council, the Council shall submit a report to the President, the 
Senate Grovernmental Affairs Committee, and the appropriate 
committees of the House of Representatives and of the Senate, that 
proposes the type and scope of activities the Council shall under-
take, including the extent to which the Council will coordinate 
activities with other advisory committees relating to trade and 
competitiveness in order to maximize the effectiveness of the 
Council. 
(e) GIFTS.—The Council may accept, use, and dispose of gifts or 
donations of services or property. 
(D USE OF THE MAILS.—The Council may use the United States 
mails in the same manner and under the same conditions as other 
Federal agencies. 
(g) ADMINISTRATIVE AND SUPPORT SERVICES.—The Administrator 
of (jeneral Services shall provide to the Council, on a reimbursable 
basis, such administrative and support services as the Council may 
request. 
(h) SUBCOUNCILS.— 
(1) The Council may establish, for such period of time as the 
Council determines appropriate, subcouncils of public and pri-
vate leaders to analyze specific competitive issues. 
(2) Any such subcouncil shall include representatives of busi-
ness, labor, government, and other individuals or representa-
tives of groups whose participation is considered by the Council 
to be important to developing a full understanding of the sub-
ject with which the subcouncil is concerned. 
(3) Any such subcouncil shall include a representative of the 
Federal Government. 
(4) Any such subcouncil shall assess the actual or potential 
competitiveness problems facing the industry or the specific 
policy issues with which the subcouncil is concerned and shall 
formulate specific recommendations for responses by business, 
government, and labor— 
(A) to encourage adjustment and modernization of the 
industry involved; 
(B) to monitor and facilitate industry responsiveness to 
opportunities identified under section 52080)X1XB); 
(C) to encourage the ability of the industry involved to 
compete in markets identified under section 520803X1XC); or 
(D) to alleviate the problems in a specific policy area 
facing more than one industry. 
(5) Any discussion held by any subcouncil shall not be consid-
ered to violate any Federal or State antitrust law. 
(6) Any discussion held by any subcouncil shall not be subject 
to the provisions of the Federal Advisory Committee Act, except 
that a Federal representative shall attend all subcouncil 
meetings. 
(7) Any subcouncil shall terminate 30 days after making 
recommendations, unless the Council specifically requests that 
the subcouncil continue in operation. 
(i) APPUCABIUTY OF ADVISORY COMMITTEE ACT.—The provisions of 
subsections (e) and (f) of section 10, of the Federal Advisory Commit-
tee Act shall not apply to the Council. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1461 
SEC. 5208. ANNUAL REPORT. 
15 USC 4807. 
(a) SUBMISSION OP REPORT.—The Council shall annually prepare 
and submit to the President, the Senate Governmental Affairs 
Committee, and the appropriate Committees of the House of Rep-
resentatives and the Senate a report setting forth— 
(1) the goals to achieve a more competitive United States 
economy; 
(2) the policies needed to meet such goals; 
(3) a summary of existing policies of the Federal (Jovernment 
or State and local governments significantly affecting the 
competitiveness of the United States economy; and 
(4) a summary of significant economic and technological 
developments, in the United States and abroad, affecting the 
competitive position of United States industries. 
(b) CONTENTS OP REPORT.—The report submitted under subsection 
(a) shall— 
(1) identify and describe actual or foreseeable developments, 
in the United States and abroad, which— 
(A) create a significant likelihood of a competitive chal-
lenge to, or of substantial dislocation in, an established 
United States industry; 
(B) present significant opportunities for United States 
industries to compete in new geographical markets or prod-
uct markets, or to expand the position of such industries in 
established markets; or 
(C) create a significant risk that United States industries 
shall be unable to compete successfully in significant 
markets; 
(2) specify the industry sectors affected by the developments 
described in the report under paragraph (1); and 
(3) contain a statement of the findings and recommendations 
of the Council during the previous fiscal year, including any 
recommendations of the Council for (a) such legislative or 
administrative actions as the Council considers appropriate, and 
0>) including the elimination, consolidation, reorganization of 
government agencies especiallv such agencies that specifically 
deal with research, science, technology, and international trade. 
(c) REPORT BY CONGRESSIONAL COMMITTEES.—The Council shall 
consult with each committee to which a report is submitted under 
this section and after such consultation, each such committee shall 
submit to its respective House a report setting forth the views and 
recommendations of such committee with respect to the report of 
the Council. 
SEC. 5209. AUTHORIZATION OF APPROPRIATIONS. 
15 USC 4808. 
There are authorized to be appropriated for each of the fiscal 
years 1989 and 1990 such sums as mav be necessary not to exceed 
$5,000,000 to carry out the provisions or this subtitle. 
SEC. 5210. DEFINITIONS. 
15 USC 4809. 
For purposes of this subtitle— 
(1) the term "Council" means the Competitiveness Policy 
Council established under section 5203; 
(2) the term "member" means a member of the Competitive-
ness Policy Council; 
(3) the term "United States" means each of the several States, 
the District of Columbia, the Commonwealth of Puerto Rico, 
102 STAT. 1462 
PUBLIC LAW 100-418—AUG. 23, 1988 
Guam, the Virgin Islands, the Commonwealth of the Northern 
^ 
Mariana Islands, American Samoa, and any other territory or 
^ 
possession of the United States; and 
(4) the term "agent of a foreign principal" is defined as such 
term is defined under subsection (d) of the first section of the 
Foreign Agents Registration Act of 1938 (22 U.S.C. 611) subject 
to the provisions of section 3 of such Act (22 U.S.C. 613). 
Subtitle D—Federal Budget Competitiveness 
Impact Statement 
SEC. 5301. PRESIDENT'S ANNUAL BUDGET SUBMISSION. 
Subsection (a) of section 1105 of title 31, United States Code, is 
amended by inserting at the end thereof the following new 
paragraph: 
"(26) an analysis, prepared by the Office of Management and 
Budget after consultation with the chairman of the Council of 
Economic Advisers, of the budget's impact on the international 
competitiveness of United States business and the United States 
balance of payments position and shall include the following 
projections, based upon the best information available at the 
time, for the fiscal year for which the budget is submitted— 
"(A) the amount of borrowing by the Government in 
private credit markets; 
"(B) net domestic savings (defined as personal savings, 
corporate savings, and the fiscal surplus of State and local 
governments); 
"(C) net private domestic investment; 
"(D) the merchandise trade and current accounts; 
"(E) the net increase or decrease in foreign indebtedness 
(defined as net foreign investment); and 
"(F) the estimated direction and extent of the influence of 
the Government's borrowing in private credit markets on 
United States dollar interest rates and on the real effective 
exchange rate of the United States dollar.". 
SEC. 5302. ANNUAL CONCURRENT RESOLUTION ON THE BUDGET. 
Subsection (e) of section 301 of the Congressional Budget Act of 
1974 (2 U.S.C. 632(e)) is amended by "and" at the end of paragraph 
(8), by striking out the period and by inserting "; and" at the end of 
paragraph (9), and by inserting at the end thereof the following new 
paragraph: 
"(10) an analysis, prepared after consultation with the Direc-
tor of the Congressional Budget Office, of the concurrent resolu-
tion's impact on the international competitiveness of United 
States business and the United States balance of payments 
position and shall include the following projections, based upon 
the best information available at the time, for the fiscal year 
covered by the concurrent resolution— 
"(A) the amount of borrowing by the Government in 
private credit markets; 
"(B) net domestic savings (defined as personal savings, 
corporate savings, and the fiscal surplus of State and local 
governments); 
"(C) net private domestic investment; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1463 
"(D) the merchandise trade and current accounts; 
"(E) the net increase or decrease in foreign indebtedness 
(defined as net foreign investment); and 
"(F) the estimated direction and extent of the influence of 
the Government's borrowing in private credit markets on 
United States dollar interest rates and on the real effective 
exchange rate of the United States dollar.". 
SEC. 5303. EFFECTIVE DATE. 
31 USC 1105 
The amendment made by section 5301 shall be effective for fiscal 
years 1989, 1990, 1991, and 1992, and shall be fully reflected in the 
budgets submitted by the President as required by section 1105(a) of 
title 31, United States Code, for each such fiscal year, and the 
amendment made by section 5302 shall be effective for fiscal years 
1989,1990,1991, and 1992. 
Subtitle E-^Trade Data and Studies 
PART I—NATIONAL TRADE DATA BANK 
SEC. 5401. DEFINITIONS. 
15 USC 4901. 
For purposes of this subtitle— 
(1) the term "CJommittee" means the Interagency Trade Data 
Advisory Committee; 
(2) the term "Data Bank" means the National Trade Data 
Bank; 
(3) the term "Executive agency" has the same meaning as in 
section 105 of title 5, United States Code; 
(4) the term "export promotion data system" means the data 
system known as the Commercial Information Management 
System which is maintained and operated by the United States 
and Foreign C!ommercial Service and is established as part of 
the Data Bank under section 3816; 
(5) the term "international economic data system" means the 
data system established as part of the Data Bank under section 
5406 which contains data useful to polic3miakers and analysis 
concerned with international economics; and 
(6) the term "Secretary" means the Secretary of Commerce. 
SEC. 5402. INTERAGENCY TRADE D
A
T
A ADVISORY COMMITTEE. 
15 USC 4902. 
(a) EsTABUSHMENT.—There is established the Interagency Trade 
Data Advisory Committee. 
O
k
)
) MEMBERSHIP.—The Committee shall consist of— 
(1) the United States Trade Representative; 
(2) the Secretary of Agriculture; 
(3) the Secretary of Defense; 
(4) the Secretary of Commerce; 
(5) the Secretary of Labor; 
(6) the Secretary of the Treasury; 
(7) the Secretary of State; 
(8) the Director of the Of^ce of Management and Budget; 
(9) the Director of Central Intelligence; 
(10) the (Dhairman of the Federal Reserve Board; 
(11) the Chairman of the International Trade C!ommission; 
(12) the President of the Export-Import Bank; 
102 STAT. 1464 
PUBLIC LAW 100-418—AUG. 23, 1988 
(13) the President of the Overseas Private Investment 
Corporation; and 
(14) such other members as may be appointed by the 
: 
President from full-time officers or employees of the Federal 
Government. 
(c) C^HAiRBCAN.—The Secretary of Commerce shall be Chairman of 
the (}onmiittee. 
(d) DESIGNEES.—^Any member of the Committee may appoint a 
designee to serve in place of such member on the (Dommittee. 
15 use 4903. 
SEC 5403. FUNCTIONS OF THE COMMITTEE. 
The Conmiittee shall advise the Secretary of Ck)mmerce, as appro-
priate, on the establishment, structure, contents, and operation of a 
National Trade Data Bank in accordance with section 5406 in order 
to assure the timely collection of accurate data and to provide the 
private sector and government officials efficient access to economic 
and trade data collected by the Federal (government for purposes of 
policymaking and export promotion. 
15 use 4904. 
SEC 5404. CONSULTATION WITH THE PRIVATE SECTOR AND GOVERN-
MENT OFFICIALS. 
The Secretary shall r^ularly consult with representatives of the 
private sector and officiads of State and local governments to assess 
the adequacy of United States trade information. The Secretary 
shall seek reconmiendations on how trade information can be made 
more accessible, understandable, and relevant. The Secretary shall 
seek recommendations as to what data should be included in the 
export promotion data system in the Data Bank. 
15 use 4905. 
SEC 5405. COOPERATION AMONG EXECUTIVE AGENCIES. 
Each, executive agency shall furnish to the Secretary such 
information for inclusion in the National Trade Data Bank as the 
Secretary, in consultation with the Advisory dbnmiittee, considers 
necessary to the operation of the Data Bank. 
15 use 4906. 
SEC 5406. ESTABUSHMENT OF THE DATA BANK. 
(a) ESTABLISHMENT.—^Within 2 years after the date of the enact-
ment of this Act, the Secretary of Commerce shall establish the 
Data Bank. The Secretary shall manage the Data Bank. The Data 
Bank shall consist of two data systems, to be designated the Inter-
national Economic Data System, as described in subsection (b) and 
the Export Promotion Data System, as described in subsection (c). 
(b) INTERNATIONAL ECONOMIC DATA SYSTEM.—The International 
EoDnomic Data System shall include current and historical informa-
tion determined by the Secretary to be useful (after the consultation 
required by section 5404) to policymakers and analysts concerned 
with international economics and trade and which shall include 
Classified 
data compile or obtained by appropriate executive agencies. Such 
information shall not identify parties to transactions. Such infor-
mation may include data for the United States and countries with 
which the United States has important economic relations 
including— 
(1) data on imports and exports, including— 
(A) aggregate import and export data for the United 
States and for each foreign country; 
(B) industry-specific import and export data for each 
foreign country; 
information. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1465 
(C) product and service specific import and export data 
for the United States; 
(D) market penetration information; and 
(E) foreign destinations for exports of the United States; 
(2) data on international service transactions; 
(3) information on international capital markets, including— 
(A) interest rates; and 
(B) average exchange rates; 
(4) information on foreign direct investment in the United 
States economy; 
(5) international labor market information, including— 
(A) wage rates for major industries; 
(B) international unemplojrment rates; and 
(C) trends in international labor productivity; 
(6) information on foreign government policies affecting trade, 
including— 
(A) trade barriers; and 
(B) export financing policies; 
(7) import and export date for the United States on a State-by-
Stete basis aggregated at the product level including— 
(A) date concerning the country shipping the import, the 
Stete of first destination, and the original part of entry for 
imports of goods and, to the extent possible, services; and 
(B) date concerning the Stete of the exporter, the port of 
departure, and the country of first destination for export of 
goods and, to the extent possible, services; and 
(8) any other economic and trade date collected by the Federal 
Government that the Secretly determines to be useful in 
carrjdng out the purposes of this subtitle. 
(c) EXPORT PROMOTION DATA SYSTEM.—The export promotion date Classified 
system shall include date and information collected by the Federal ^formation. 
Government on the industrial sectors and markets of foreign coun-
tries which are determined by the Secretery (after consultetion 
required by section 5404) to be of the greatest interest to United 
Stetes business firms that are engaged in export-related activities 
and to Federal and Stete agencies that promote exports, while 
providing for the confidentiality of proprietery business informa-
tion, and shall be designed to use the most effective means of 
disseminating date and information electronically through the 
Department, or Department-designated offices, or through other 
available date bases in an accurate and timely manner. Such date 
system 
shall 
monitor, 
organize, 
and 
disseminate 
selected 
information on— 
(1) specific business opportunities in foreign countries; 
(2) specific industrial sectors within foreign coimtries with 
high export potential such as— 
(A) size of the market; 
(B) distribution of products; 
(C) competition; 
(D) significant applicable laws, regulations, specifications, 
and standards; 
(E) appropriate government officials; and 
(F) trade associations and other contact points; and 
(3) foreign countries generally, such as— 
(A) the general economic conditions; 
(B) common business practices; 
(C) significant teriff and trade barriers; and 
102 STAT. 1466 
PUBLIC LAW 100-418—AUG. 23, 1988 
(D) other significant laws and regulations regarding im-
ports, licensing, and the protection of intellectual property; 
(4) export financing information, including the availability, 
through public sources of funds for United States exporters and 
foreign competitors; 
(5) transactions involving barter and countertrade; and 
(6) any other similar information, that the Secretary deter-
mines to be useful in carrying out the purposes of this subtitle. 
15 use 4907. 
SEC. 5407. OPERATION OF THE DATA BANK. 
The Secretary shall manage the Data Bank to provide the most 
appropriate data retrieval system or systems possible. Such system 
or systems shall— 
(1) be designed to utilize data processing and retrieval tech-
nology in monitoring, organizing, analyzing, and disseminating 
the data and information contained in the Data Bank; 
(2) use the most effective and meaningful means of organizing 
and making such information available to— 
(A) United States Government policymakers; 
(B) United States business firms; 
(C) United States workers; 
(D) United States industry associations; 
(E) United States agricultural interests; 
(F) State and local economic development agencies; and 
(G) other interested United States persons who could 
benefit from such information; 
(3) be of such quality and timeliness and in such form as to 
£issist coordinated trade strategies for the United States; and 
(4) facilitate dissemination of information through nonprofit 
organizations with significant outreach programs which com-
plement the regional outreach programs of the United States 
and Foreign Commercial Service. 
15 use 4908. 
SEC. 5408. INFORMATION ON THE SERVICE SECTOR. 
(a) SERVICE SECTOR INFORMATION.—The Secretary shall ensure 
that, to the extent possible, there is included in the Data Bank 
information on service sector economic activity that is as complete 
and timely as information on economic activity in the merchandise 
sector. 
(b) SURVEY.—The Secretary shall undertake a new benchmark 
survey of service transactions, including transactions with respect 
to— 
(1) banking services; 
(2) information services, including computer software serv-
ices; 
(3) brokerage services; 
(4) transportation services; 
(5) travel services; 
(6) engineering services; 
(7) construction services; and 
(8) health services. 
(c) GENERAL INFORMATION AND INDEX OF LEADING INDICATORS.— 
The Secretary shall provide— 
(1) not less than once a year, comprehensive information on 
the service sector of the economy; and 
(2) an index of leading indicators which includes the measure-
ment of service sector activity in direct proportion to the con-
; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1467 
tribution of the service sector to the gross national product of 
the United States. 
SEC 5409. EXCLUSION OF INFORMATION. 
15 USC 4909. 
The Data Bank shall not include any information— 
(1) the disclosure of which to the public is prohibited under 
any other provision of law or otherwise authorized to be with-
held under other provision of law; or 
(2) that is specifically authorized under criteria established by 
statute or an Executive order not to be disclosed in the interest 
of national defense or foreign policy and are in fact properly 
classified pursuant to such Ebcecutive order. 
SEC 5410. NONDUPUCATION. 
15 USC 4910. 
The Secretary shall ensure that information systems created or 
developed pursuant to this subtitle do not unnecessarily duplicate 
information systems available fix>m other Federal agencies or from 
the private sector. 
SEC 5411. COLLECTION OF DATA. 
15 USC 4911. 
Except as provided in section 5408, nothing in this subtitle shall 
be considered to grant independent authority to the Federal Govern-
ment to ooUect any data or information from individuals or entities 
outside of the Federal Government. 
SEC 5412. FEES AND ACCESS. 
15 USC 4912. 
The Secretary shall provide reasonable public services and access 
(including elecbt>nic access) to any information maintained as part 
of the Data Bank and may charge reasonable fees consistent with 
section 552 of title 5, United Stat^ Code. 
SEC 5413. REPORT TO CONGRESS. 
15 USC 4913. 
(a) INTERIM REPORT.—^Not more than 1 year after the date of 
enactment of this Act, the Secretary after consultation with the 
Advisory Committee shall submit a report to the Governmental 
AfTairs Committee and the Banking, Housing, and Urban Affairs 
Committee of the Senate, other appropriate committees of the 
Senate, and the House of Representatives describii^ actions taken 
pursuant to this subtitle, particularly— 
(1) actions taken to provide the information on services de-
scribed in section 5408; and 
(2) actions taken to provide State-by-State information as 
described in section 5406(bX7). 
(b) FINAL REPORT.—Not more than 3 years after the date of 
enactment of this Act, the Secretary after consultation with the 
Advisory Committee shall submit a report to the Governmental 
Affairs Committee and the Banking, Housing, and Urban Affairs 
Committee of the Senate, other appropriate committees of the 
Senate, and the House of Representatives— 
(1) assessing the current quality and comprehensiveness of, 
and the ability of the public and of private entities to obtain 
access to trade data; 
(2) describing all other actions taken and planned to be taken 
pursuant to thiis subtitle; 
(3) including comments by the private sector and by State 
agencies that promote exports on the implementation of the 
IkitaBank; 
102 STAT. 1468 
PUBLIC LAW 100-418—AUG. 23, 1988 
(4) describing the extent to which the systems within the Data 
Bank are being used and any recommendations with regard to 
the operation of the system; and 
(5) describing the extent to which United States citizens and 
firms have access to the data banks of foreign countries that is 
similar to the access provided to foreign citizens and firms. 
PART II—STUDIES 
2 use 194b. 
Termination 
date. 
15 use 4603a. 
SEC. 5421. COMPETITIVENESS IMPACT STATEMENTS. 
(a) The President or the head of the appropriate department or 
agency of the Federal Government shall include in every rec-
ommendation or report made to the Congress on legislation which 
may affect the ability of United States firms to compete in domestic 
and international commerce a statement of the impact of such 
legislation on— 
(1) the international trade and public interest of the United 
States, and 
(2) the ability of United States firms engaged in the manufac-
ture, sale, distribution, or provision of goods or services to 
compete in foreign or domestic markets. 
(b) This section provides no private right of action as to the need 
for or adequacy of the statement required by subsection (a). 
(c) This section shall cease to be effective six years from the date 
of enactment. 
SEC. 5422. STUDY AND REPORT BY THE ADVISORY COUNCIL ON FEDERAL 
PARTICIPATION IN SEMATECH. 
(a) STUDY AND REPORT.—Not later than February 1, 1989, and 
annually thereafter for each fiscal year in which appropriated funds 
are expended for Sematech the Advisory Council on Federsil Partici-
pation in Sematech established under section 273(a) of the National 
Defense Authorization Act for fiscal years 1988 and 1989 (15 U.S.C. 
4603(a); Public Law 100-180) shall conduct a study and submit a 
report to the Governmental Affairs Committee and the Armed 
Services Committee of the Senate and to appropriate committees of 
the House of Representatives concerning Federal participation in 
Sematech. The study and report shall be conducted under the 
direction of the Under Secretary of Commerce for Economic Affairs. 
(b) COUNCIL RECOMMENDATIONS AND REPORT.—The Council shall 
include in the report submitted under subsection (a) the following: 
(1) identification of potential sources of Federal funding from 
department and agency budgets for Sematech and recommenda-
tions concerning methods and terms of Federal financial partici-
pation in Sematech, including grants, loans, loan guarantees, 
and contributions in kind. The feasibility of methods of Federal 
recoupment shall also be considered; 
(2) definition and assessment of continued Federal parti-
cipation in Sematech including, but not limited to, issues of 
technology research and development, civilian and defense 
industrial base objectives and initiatives, and commercializa-
tion. The report shall include a summary of the most recent 
plans, milestones, and cost estimates for Sematech, including 
any changes and alterations, and shall comment on Sematech's 
accomplishments and shortfalls in the preceding fiscal year; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1469 
(3) coordination of inter-agency participation, including all 
matters pertaining to Federal funding and decisionmaking, and 
other issues regarding Federal participation in Sematech; and 
(4) any other issues and questions the Council deems appro-
priate shall be considered. 
SEC. 5423. IMPACT OF NATIONAL DEFENSE EXPENDITURES ON INTER-
NATIONAL COMPETITIVENESS. 
(a) FINDINGS.—The Congress finds that the ability of United 
States industries to compete in world markets may be adversely 
affected by the following factors: 
(1) The allocation of intellectual resources between the pri-
vate and public sectors. 
(2) The distribution of innovative research and development 
between commercial and noncommercial applications. 
(3) The number of scientific advances which are ultimately 
commercialized. 
(4) The cost of capital which is affected by many factors 
including the budget deficit and defense spending. 
(b) SENSE OF CONGRESS.—It is the sense of Congress that the 
President should evaluate the impact on United States competitive-
ness o
f
— 
(1) the defense spending by foreign countries, particularly 
Japan's expenditure of 1 percent of its gross national product 
for defense compared to the expenditure of the United States of 
6 percent of its gross national product, and 
(2) the other factors listed in subsection (a). 
TITLE VI—EDUCATION AND TRAINING 
FOR AMERICAN COMPETITIVENESS 
SEC. 6001. SHORT TITLE. 
This title may be cited as the "Education and Training for a 
Competitive America Act of 1988". 
SEC. 6002. FINDINGS AND PURPOSE. 
(a) FINDINGS.—The Congress finds that— 
(1) the relationship between a strong and vibrant educational 
system and a healthy nationsQ economy is inseparable in an era 
in which economic growth is dependent on technology and is 
imperiled by increased foreign competition; 
(2) our Nation's once undisputed pre-eminence in inter-
national commerce is facing unprecedented challenges from 
competitor nations who have given priority to the relationship 
between education and economic growth in areas such as high 
technology industries; 
(3) our standing in the international marketplace is being 
further eroded by the presence in the workforce of millions of 
Americans who are functionally or technologically illiterate or 
who lack the mathematics, science, foreign language, or voca-
tional skills needed to adapt to the structural changes occurring 
in the global economy; 
(4) our competitive position is also being eroded by declines in 
the number of students taking advanced courses in mathe-
matics, science, and foreign languages and by the lack of 
Education and 
Training for a 
Competitive 
America Act of 
1988. 
Disadvantaged 
persons. 
Employment 
and 
unemployment. 
Schools and 
colleges. 
20 u s e 5001. 
20 u s e 5002. 
102 STAT. 1470 
PUBLIC LAW 100-418—AUG. 23, 1988 
Disadvantaged 
persons. 
Schools and 
colleges. 
Employment 
and 
unemployment. 
20 u s e 5003. 
20 u s e 5004. 
Women. 
Minorities. 
Handicapped 
persons. 
modern technical and laboratory equipment in our educational 
institutions; 
(5) restoring 
our 
competitiveness 
and 
enhancing 
our 
productivity will require that all workers possess basic edu-
cational skills and that many others possess highly specific 
skills in mathematics, science, foreign languages, and voca-
tional areas; and 
(6) our Nation must recognize the substantial impact that 
an investment in human capital will have on increasing 
productivity. 
(b) PURPOSE.—It is therefore the purpose of this title to establish 
programs designed— 
(1) to enhance ongoing efforts in elementary and secondary 
education; 
(2) to improve our productivity and competitive position by 
investing in human capital; 
(3) to assist out-of-school youth and adults who are function-
ally illiterate in obtaining the basic skills needed for them to 
become productive workers in a competitive economy; 
(4) to help educational institutions prepare those engaged in 
work relating to mathematics, science, and foreign languages by 
improving and expanding instruction in those areas and by 
modernizing laboratory and technical equipment; 
(5) to enhance the skills of workers affected, or about to be 
affected, by economic change, in order to prevent dislocation 
within existing industries and to strengthen emerging domestic 
industries; and 
(6) to accomplish such purposes without impairing the avail-
ability of funds to carry out existing programs that address the 
needs of dislocated workers, such as previously authorized edu-
cation programs. 
SEC. 6003. DEFINITIONS. 
As used in this title— 
(1) The term "foreign language instruction" means instruc-
tion in critical foreign languages as defined by the Secretary. 
(2) The term "institution of higher education" has the same 
meaning given that term by section 1201(a) of the Higher 
Education Act of 1965. 
(3) The terms "local educational agency" and "State edu-
cational agency" have the same meaning given such terms 
under section 198 of the Elementary and Secondary Education 
Act of 1965. 
(4) The term "Secretary" means the Secretary of Education. 
(5) The term "State" means any of the several States, the 
Commonwealth of Puerto Rico, the District of Columbia, Guam, 
American Samoa, the Virgin Islands, the Northern Mariana 
Islands, and the Trust Territory of the Pacific Islands. 
SEC. 6004. GENERAL PROVISIONS. 
(a) 
G R A N T 
R E Q U I R E M E N T S 
with 
The Secretary shall ensure, 
respect to grants provided under subtitles A and B, that— 
(1) services assisted by funds received under such grants shall 
be made available to historically underrepresented and under-
served populations of students, including females, minorities, 
handicapped individuals, individuals with limited English pro-
ficiency, and migrant students; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1471 
(2) the terms "training" and "instruction" are interpreted to 
include training and instruction throi^h telecommunications 
technologies, including the full range of current and new tech-
nologies that can be used for educational purposes, such as 
television broadcasts, closed circuit television systems, cable 
television, satellite transmissions, computers, VHS, laser discs, 
and audio by discs, tapes, or broadcast, and such other video and 
telecommunications technol(^es that alone or in combination 
can assist in teaching and learning; and 
(3) where appropriate, prc^rams funded under subtitles A and 
B shall be coordinated with other federally funded education 
and training programs. 
(b) AoDmoNAL EuGBBLE INSTITUTIONS.—For purposes of any pro-
gram authorized by subtitle A or B, institutions eligible to partici-
pate shall include any accredited proprietary institution providing a 
program of less than six months duration that is otherwise eligible 
to participate in any program under subtitle A or B. 
(c) BUDGET LIMFTATION.—^The Secretary may not make grants or 
enter into contracts under subtitle A, B, or C except to such extent, 
or in such amounts, as may be provided in appropriation Acts. 
Subtitle A—Elementary and Secondary 
Education 
State and local 
governments. 
Appropriation 
authorization. 
CHAPTER 1—MATHEMATICS AND SCIENCE 
SEC 6005. MATHEMATICS AND SCIENCE EDUCATION REAUTHORIZED. 
Section 203(b) of the Education for Economic Security Act is 20 use 3963 
amended to read as follows: 
"(b) There are authorized to be appropriated $175,000,000 for the 
fiscal year 1988 to carry out the provisions of this title.". 
CHAPTER 2—ADULT LITERACY 
SEC 6011. WORKPLACE LITERACY PARTNERSHIPS GRANTS 
(a) ESTABLISHMENT OF GRANT PROGRAM.—The Adult Education 
Act is amended by inserting after section 315 the following new 
section: 
BUSINESS, INDUSTRY, LABOR, AND EDUCATION PARTNERSHIPS FOR 
WORKPLACE LITERACY 
"SEC. 316. (a) GRANTS FOR EIXEMPLARY DEMONSTRATION PARTNER-
SHIPS F
O
R WORKPLACE LFTERACY.—(1) Subject to subsection (b), the 
Secretary may make demonstration grants to exemplary education 
partnerships for workplace literacy to pay the Federal share of the 
cost of adult education programs which teach literacy skills needed 
in the workplace through partnerships between— 
"(A) business, industry, or labor organizations, or private 
industry councils; and 
"(B) State educational agencies, local educational agencies, 
institutions of higher education, or schools (including employ-
ment and training agencies or community-based organizations). 
"(2) Grants under paragraph (1) may be used— 
102 STAT. 1472 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(A) to fund 70 percent of the cost of programs which meet the 
requirements of paragraph (3); and 
*(B) for administrative costs incurred by State educational 
agencies and local educational agencies in establishing pro-
grams funded under subpar^raph (A). 
"(3) Programs funded under paragraph (2)(A) shall be designed to 
improve the productivity of the workforce through improvement of 
literacy skills needed in the workplace by— 
"(A) providing adult literacy and other basic skills services 
and activities; 
"(B) providing adult secondary education services and activi-
ties which may lead to the completion of a high school diploma 
or its equivalent; 
"(C) meeting the literacy needs of adults with limited English 
proficiency; 
"(D) upgrading or updating basic skills of adult workers in 
accordance with changes in workplace requirements, tech-
nology, products, or processes; 
"(E) improving the competency of adult workers in speaking, 
listening, reasoning, and problem solving; or 
Children and 
"(F) providing education counseling, transportation, and 
y°^^^- 
nonworking hours child care services to adult workers while 
they participate in a program funded under paragraph (2XA). 
"(4) An application to receive funding for a program out of a grant 
made to a partnership under this subsection shall— 
"(A) be submitted jointly by— 
"(i) a business, industry, or labor organization, or private 
industry council, and 
"(ii) a State educational agency, local educational agency, 
institution of higher education, or school (including an area 
vocational school, an employment and training agency, or 
community-based organization); 
"(B) set forth the respective roles of each member of the 
partnership; 
"(C) contain such additional information as the Secretary may 
require, including evidence of the applicant's experience in 
providing literacy services to working adults; 
"(D) describe the plan for carr3dng out the requirements of 
' 
paragraph (3); and 
"(E) provide assurances that the applicant will use the funds 
to supplement and not supplant funds otherwise available for 
the purpose of this section. 
"(b) GRANTS TO STATES.—(1) Whenever in any fiscal year, appro-
priations under subsection (c) are equal to or exceed $50,000,000, the 
Secretary shall make grants to States which have State plans 
approved by the Secretary under section 306 to pay the Federal 
share of the cost of adult education programs which teach literacy 
skills needed in the workplace through partnerships between— 
"(A) business, industry, or labor organizations, or private 
industry councils; and 
"(B) State educational agencies, local educational agencies, 
institutions of higher education, or schools (including employ-
ment and training agencies or community-based organizations). 
"(2) Grants under paragraph (1) may be used— 
"(A) to fund 70 percent of the cost of programs which meet the 
requirements of paragraph (4); 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1473 
"(B) for administrative costs incurred by State educational 
agencies and local educational agencies in establishing pro-
grams funded under subparagraph (A); and 
"(C) for costs incurred by State educational agencies in obtain-
ing evaluations described in paragraph (BXAXiii). 
"(3) A State shall be eligible to receive its allotment under subsec-
tion (e) if it— 
"(A) includes in a State plan submitted to the Secretary under 
section 306 a description of— 
"(i) the requirements for State approval of funding of a 
program; 
"(ii) the procedures under which applications for such 
funding may be submitted; and 
"(iii) the method by which the State shall obtain annusd 
third-party eveiluation of student achievement in, and over-
all effectiveness of services provided by, all programs which 
receive funding out of a grant made to the State under this 
section; and 
"(B) satisfies the requirements of section 306(a). 
"(4) The program requirements set forth in subsection (aX3), shall 
apply to the program authorized by this subsection. 
"(5) An application to receive funding for a program from a grant 
made to a State under paragraph (1) shall contain the same informa-
tion required in subparagraphs (A) through (E) of subsection (aX4). 
"(6) If a State is not eligible for a grant under paragraph (1) of this 
subsection, the Secretary shall use the State's allotment under 
paragraph (7) to make direct grants to applicants in that State who 
are qualified to teach literacy skills needed in the workplace. 
"(7XA) The Federal share of expenditures for programs in a State 
funded under this subsection shall be paid from a State's allotment 
under this paragraph. 
"(B) From the sum appropriated for each fiscal year under subsec-
tion (c) for any fiscal year in which appropriations equal or exceed 
$50,000,000, the Secretary shall allot— 
"(i) $25,000 to each of American Samoa, Guam, the Northern Territories, U.S. 
Mariana Islands, the Trust Territory of the Pacific Islands, and 
the Virgin Islands; and 
"(ii) to each remaining State an amount which bears the same 
ratio to the remainder of such sum as— 
"(I) the number of adults in the State who do not have a 
certificate of graduation from a school providing secondary 
education (or its equivalent) and who are not currently 
required to be enrolled in schools in the State, bears to 
"(II) the number of such adults in all States; 
except that no State shall receive less than $125,000 in any 
fiscal year. 
"(C) At the end of each fiscal year, the portion of any State's 
allotment for that fiscal year which— 
"(i) exceeds 10 percent of the total allotment for the State 
under paragraph (2) for the fiscal year; and 
"(ii) remains unobligated; 
shall be reallocated among the other States in the same proportion 
as each State's allocation for such fiscal year under paragraph (2). 
"(c) AUTHORIZATION OF APPROPRIATIONS.—(1) There are authorized 
to be appropriated $30,000,000 for the fiscal year 1988, $31,500,000 
for the fiscal year 1989. and such sums as may be necessary for the 
102 STAT. 1474 
PUBLIC LAW 100-418—AUG. 23, 1988 
20 u s e 1202. 
Minorities. 
Community 
development. 
Children and 
youth. 
Transportation. 
(iscal year 1990 and each succeeding fiscal year ending prior to 
October 1,1993, to carry out the provisions of this section. 
"(2) Amounts appropriated under this subsection shall remain 
available until expend^.". 
(b) DifviNiTioiffi.—Section 303 of the Adult Education Act is 
amended by adding at the end the following new subsections: 
"(k) The term 'community-based organization' has the meaning 
given such term in section 4(5) of the Job Training Partnership Act 
(21U5.C.1501etseq.). 
"(1) The term 'private industry councir means the private indus-
try councU established under section 102 of the Job Training Part-
nership Act (21 U.S.C-1501 et seq.).". 
SEC. 6012. ENGLISH LITERACY GRANTS. 
(a) EsTABUStiMENT OF GRANT PROGRAM.—^The Adult Education 
Act is amended by inserting after section 316 (as added by section 
6011) the following new section: 
"ENGLISH UTERACT PROGRAM GRANTS 
"SEC. 317. (a) GRANTS TO STATES.—(1) The Secretary may make 
grants to States which have State plans approved by the Secretary 
under section 306 for the establishment, operation, and improve-
ment of EInglish literacy pn^rams for individuals of limited English 
proficiency. Such grants may provide for support services for pro-
gram participants, including child care and transportation costs. 
"(2) A State shall be eligible to receive a grant under paragraph 
(1) if the State includes in a State plan submitted to the Secretary 
under section 306 a description of— 
"(A) the number of individuals of limited English proficiency 
in the State who need or could benefit from programs assisted 
under this chapter; 
"(B) the activities which would be undertaken under the 
grant and the manner in which such activities will promote 
E^oglish literacy and enable individuals in the State to partici-
pate fiilly in national life; 
"iQ how the activities described in subparagraph (B) will 
serve individuals of limited English proficiency, including the 
qualifications and training of personnel who will participate in 
tiie proposed activities; 
"(D) the resources necessary to develop and operate the pro-
posed activities and the resources to be provided by the State; 
and 
"(E) the specific goals of the proposed activities and how 
achievement of these goals will be measured. 
"(3) The Secretary may terminate a grant only if the Secretary 
determines that— 
"(A) the State has not made substantial progress in achieving 
the specific educational goals set out in the application; or 
"(B) there is no longer a need in the State for the activities 
funded by the grant. 
"(b) SET-Asms F
O
R Ck)MMUNiTY-BASED ORGANIZATIONS.—A State 
that is awarded a grant under subsection (a) shall use not less than 
50 percent of funds awarded under the grant to fund programs 
operated by community-based oiganizations with the demonstrated 
capability to administer English proficiency programs. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1475 
"(c) REPORT.—A State that is awarded a grant under subsection (a) 
shall submit to the Secretary a report describing the activities 
funded under the grant for each fiscal year covered by the grant. 
"(d) DEMONSTRATION PROGRAM.—The Secretary, subject to the Contracts, 
availability of funds appropriated pursuant to this section, shall 
directly, and through grants and contracts with public and private 
nonprofit agencies, institutions, and organizations, carry out a 
program— 
"(1) through the Adult Education Division to develop innova-
tive approaches and methods of literacy education for individ-
uals of limited English proficiency utilizing new instructional 
methods and technologies; and 
"(2) to designate the Center for Applicable Linguistics of the 
Office of Educational Research and Improvement as a national 
clearinghouse on literacy education for individuals of limited 
English proficiency to collect and disseminate information 
concerning effective approaches or methods, including coordina-
tion with manpower training and other education programs. 
"(e) EVALUATION AND AUDIT.—The Secretary shall evaluate the 
effectiveness of programs conducted under this section. Programs 
funded under this section shall be audited in accordance with 
chapter 75 of title 31, United States Code. 
"(f) AUTHORIZATION OF APPROPRIATIONS.—(1) There are authorized 
to be appropriated $25,000,000 for the fiscal year 1988 to carry out 
this section. 
"(2) Funds appropriated pursuant to this section shall remain 
available until expended. 
"(3) Funds appropriated under this subsection may be combined 
with other funds made available for the State by the Federal 
Government for literacy training for individuals with limited Eng-
lish proficiency. 
"(4) Not more than 10 percent of funds available under this 
section shall be used to carry out the purposes of subsection (d).". 
(b) DEFINITIONS.—Section 303 of the Adult Education Act 
(20 U.S.C. 1201 et seq.) (as amended by section 6011) is amended by 
adding at the end the following new subsections: 
"(m) The term 'individual of limited English proficiency' means 
~
° 
an adult or out-of-school youth who has limited ability in speaking, 
reading, writing, or understanding the English language and— 
(1) whose native language is a language other than English; 
or 
"(2) who lives in a family or community environment where a 
language other than English is the dominant language. 
"(n) The term 'out-of-school youth' means an individual who is 
under 16 years of age and beyond the age of compulsory school 
attendance under State law who has not completed high school or 
the equivalent. 
"(o) The term 'English literacy program' means a program of 
instruction designed to help limited English proficient adults, out-of-
school youths, or both, achieve full competence in the English 
language. 
"(p) The term 'community-based organization' means a private 
organization which is representative of a community or significant 
segments of a community and which provides education, vocational 
education, job training, or internship services and programs and 
includes neighborhood groups and organizations, community action 
agencies, community 
development 
corporations, 
union-related 
102 STAT. 1476 
PUBLIC LAW 100-418—AUG. 23, 1988 
oiganizations, employer-related organizations, tribal governments, 
and organizations serving Native Alaskans and Indians.". 
SEC 6013. LITERACY COORDINATION. 
(a) FEDERAL LITERACY OFFICE.—The Adult Education Act is 
amended by inserting after section 317 (as added by section 6012) the 
following new section: 
"COORDINATION OF LITERACY PROGRAMS 
"SEC. 318. (a) FEDERAL LITERACY COORDINATION OFFICE.—The 
Adult Education Division shall serve as the Federal literacy 
coordination office. 
"(b) DUTIES.—The Secretary, through the Division, shall— 
"(1) coordinate Fedeixd literacy programs, including grant 
programs administered under this chapter and other grant 
programs funded under the Adult Education Act (20 U.S.C. 1201 
et seq.); and 
"(2) provide information and guidance to States with respect 
to the establishment of State and local volunteer pn^rams 
relating to literacy. 
"(c) STATE LTTBEIACY (COORDINATION.—To the extent practicable, 
each State agency designated under section 306(bX2) that receives 
funds under section 316 or section 317 shall— 
"(1) designate area offices for coordination of literacy pro-
grams, distributed throughout the State so that persons in all 
areas of the State have access to literacy programs; 
"(2) train personnel who will operate the area offices; 
"(3) determine curricula and materials for literacy programs; 
"(4) oversee area offices; 
"(5) provide assistance to area offices; 
"(6) conduct programs to recruit volunteers and participants; 
"(7) coordinate the programs described in paragraph (6) with 
existing literacy programs; and 
"(8) allocate funds to area offices.". 
SEC 6014. APPLICABILITY PROVISION. 
The amendments made by this chapter shall not take efTect if the 
Augustus F. Hawkins-Robert T. Stafford Elementary and Secondary 
School Improvement Amendments of 1988 is enacted prior to the 
enactment of this Act. 
CHAPTER 3—FOREIGN LANGUAGES 
Foreign 
Subchapter A—^Foreign Language Assistance 
Language 
Assistance Act of 
1988. 
SEC 6021. SHORT TITLE. 
20 use 5011. 
This subchapter may be cited as the "Foreign Language Assist-
ance Act of 1988". 
20 u s e 5012. 
SEC 6022. FINDINGS. 
The Congress finds that the economic and security interests of 
this Nation require significant improvement in the quantity and 
quality of foreign language instruction offered in the Nation's ele-
mentary and secondary schools, and Federal funds should be made 
available to assist the purpose of this subchapter. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1477 
SEC 6023. PROGRAM AUTHORIZED. 
20 USC 5013. 
(a) GENERAL AUTHORITY.—^The Secretary shall make grants to Grants. 
State educational agencies whose applications are approved under 
subsection (b) to pay the Federal share of the cost of model pro-
grams, designed and operated by local educational agencies, provid-
ing for the commencement or improvement and expansion of foreign 
language study for students. 
(b) /U>PUCATiON.—^Any State educational agency desiring to re-
ceive a grant under this subchapter shall submit an application 
therefor to the Secretary at such time, in such form, and containing 
such information and assurances as the Secretary may require. 
No application may be approved by the Secretary unless the 
application— 
(1) contains a description of model pn^ams which— 
(A) are designed by local educational agencies and are 
available without r^ard to whether students attend the 
schools operated by such agency and if the local educational 
agency determines to do so, are available to residents of the 
community, 
(B) represents a variety of alternative and innovative 
approaches to foreign language instruction, and 
(C) are selected on a competitive basis by the State edu-
cational agency; 
(2) provides assurances that all children aged 5 through 17 
who reside within the school district of the local educational 
agency shall be eligible to participate in any model program 
funded under this section (without r^ard to whether such 
children attend schools operated by such agen(^); 
(3) provides assurances that the State wUl pay the non-
Federal share of the activities for which assistance is sought 
firom non-Federal sources; and 
(4) provides that the local educational agency will provide 
standard evaluations of the proficiency of participants at appro-
priate intervals in the program which are reliable and valid, 
and provide such evaluations to the State educational agency. 
(c) FEDERAL SHARE.—(1) The Federal share for each fiscal year 
shall be 50 percent. 
(2) The Secretary may waive the requirement of paragraph (1) for 
any local educational agency which the Secretary determines does 
not have adequate resources to pay the non-Federal share of the cost 
of the project. 
(d) PARTICIPATION OF PRIVATE SCHOOLS.—(1) To the extent consist- Children and 
ent with the number of children in the State or in the school district youth. 
of each local educational agency who are enrolled in private ele-
mentary and secondary schools, such State or agency shall, after 
consultation with appropriate private school representatives, make 
provision for includmg special educational services and arrange-
ments (such as dual enrollment, educational radio and television, 
and mobile educational services and equipment) in which such 
children can participate and which meet the requirements of this 
section. Expenditures for educational services and arrangements 
pursuant to this subsection for children in private schools shall be 
equal (taking into account the number of cMldren to be served and 
the needs of such children) to expenditures for children enrolled in 
the public schools of the State or local educational agency. 
102 STAT. 1478 
PUBLIC LAW 100-418—AUG. 23, 1988 
(2) If by reason of any provision of law a State or local educational 
agency is prohibited from providing for the participation of children 
from private schools as required by paragraph (1), or if the Secretary 
determines that a State or local educational agency has substan-
tially failed or is unwilling to provide for such participation on an 
equitable basis, the Secretary shall waive such requirements and 
shall arrange for the provision of services to such children which 
shall be subject to the requirements of this subsection. Such W£dvers 
shall be subject to consultation, withholding, notice, and judicial 
review requirements in accordance with paragraphs (3) and (4) of 
section 557(b) of the Education Consolidation and Improvement Act 
of 1981. 
20 use 5014. 
SEC. 6024. ALLOTMENT. 
Territories, U.S. 
(a) GENERAL RuLE.—(1) From the sums appropriated to carry out 
this subchapter in any fiscal year, the Secretary shall reserve 1 
percent for pajmients to Guam, American Samoa, the Virgin 
Islands, the Trust Territory of the Pacific Islands, and the Common-
wealth of the Northern Mariana Islands, to be allotted in accord-
ance with their respective needs. 
(2) From the remainder of such sums the Secretary shall allot to 
each State an amount which bears the same ratio to the amount of 
such remainder as the school age population of the State bears to 
the school age population of ^1 States, except that no State shall 
receive less than an amount equal to one-half of 1 percent of such 
remainder. 
(b) AVAILABILITY OF FUNDS.—The allotment of a State under 
subsection (a) shall be made available to the State for 2 additional 
years after the first fiscal year during which the State receives its 
allotment under this section if the Secretary determines that the 
funds made available to the State during the first such year were 
used in the manner required under the State's approved application. 
SEC. 6025. DEFINITIONS. 
(a) GENERAL RULE.—For the purpose of this subchapter, the term 
"foreign language instruction" means instruction in critical foreign 
languages as defined by the Secretary. 
(b) SPECIAL RULE.—For the purpose of section 6024— 
(1) the term "school age population" means the population 
aged 5 through 17; and 
(2) the term "States" includes the 50 States, the District of 
Columbia, and the Commonwealth of Puerto Rico. 
SEC. 6026. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated $20,000,000 for the fiscal 
year 1988 to carry out this subchapter. 
Subchapter B—Presidential Award for Languages 
SEC. 6027. PRESIDENTIAL AWARDS. 
(a) GENERAL AuxHORrrY.—The President is authorized to make 
Presidential Awards for Teaching Excellence in Foreign Languages 
to elementary and secondary school teachers of foreign languages 
who have demonstrated outstanding teaching qualifications in the 
field of teaching foreign languages. 
District of 
(5) SELECTION PROCEDURES.—The President is authorized to make 
Puerto lUco 
^^^ awards under subsection (a) of this section. In selecting ele-
20 use 5015. 
20 use 5016. 
20 use 5021. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1479 
mentary and secondary school teachers for the award authorized by 
this section, the President shall select at least one elementary school 
teacher and one secondary school teacher from each of the several 
States, the District of Columbia, and the Commonwealth of Puerto 
Rico. 
SEC 6028. ADMINISTRATiyE PROVISIONS. 
20 USC 5022. 
The President shall carry out the provisions of section 6027, 
including the establishment of the selection procedures, after con-
sultation with the Secretary of Education, other appropriate offi-
cials of Federal agencies, and representatives of professional foreign 
language teacher associations. 
SEC 6029. AUTHORIZATION OF APPROPRIATIONS. 
20 USC 5023. 
(a) AUTHORIZATION.—^There are authorized to be appropriated 
$1,000,000 for fiscal year 1988 to carry out the provisions of this 
subchapter. 
0)) USE OF FUNDS.—^Amounts appropriated pursuant to sul^ection 
(a) shall be available for making awards under section 6027, for 
administrative expenses, for necessary travel by teachers selected 
under section 6027, and for special activities related to cariying out 
the provisions of this subchapter. 
CHAPTER 4—SCIENCE AND MATHEMATICS ELE-
MENTARY AND SECONDARY BUSINESS PART-
NERSHIPS 
SEC 6031. P
R
O
G
R
A
M AITTHORIZED. 
(a) EsTABUSHifENT OF PHOGRAM.—^Title m of the Education for 
Economic Security Act (20 U,S.C. 3981 et seq.) is amended— 
(1) by inserting after the title heading the following: 
"PART A—HIGHER EDUCATION PARTNERSHIPS"; and 
(2) by adding at the end the following new part: 
* T A R T B—RT.EMENTARY AND SECONDARY EJDUCATION PARTNERSHIPS 
Grants. 
"PURPOSE 
"SEC. 321. It is the purpose of this part to supplement State and 20 use 3991. 
local resources to— 
"(1) improve the quality of instruction in the fields of mathe-
matics and science in elementary and secondary schools; 
"(2) furnish additional resources and support for the acquisi-
tion of equipment, and instructional and reference materials 
and improvement of laboratory facilities in elementary and 
secondary schools; and 
"(3) encourage partnerships in science and mathematics edu-
cation between the business community, museums, libraries, 
professional mathematics and scientific associations, private 
nonprofit oiganizations, appropriate State agencies and ele-
mentary and secondary schools. 
102 STAT. 1480 
PUBLIC LAW 100-418—AUG. 23, 1988 
"PROGRAMS AUTHORIZED 
20 use 3992. 
"SEC. 322. (a) GRANTS.—The Secretary may make grants to States 
to pay the Federal share of the cost of the programs described m 
section 324. 
"flj) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated for purposes of carrying out this chapter $20,000,000 
for fiscal year 1988. 
"AMENDMENT T
O STATE APPUCATION 
20 use 3993. 
"SEC. 323. (a) APPUCATION.—A State shall be eligible to receive a 
grant under this part if— 
"(1) the State submits to the Secretary as part of its applica-
tion under section 209 such information £uid assurances as the 
Secretary may require at such time as the Secretary shall 
establish; and 
"(2) the Secretary approves such application. 
"Qy) APPUCATION REQUIREMENTS.—The Secretary shall require 
each application to include— 
(1) a description of the State's procedures relating to the use 
of funds from grants received under this part, including the 
approval process for local applications; 
'(2) an assurance that not more than 1 percent of the amount 
received shall be used for administrative expenses; and 
"(3) an assurance that the State will, to the extent possible, 
assist local school districts in economically depressed areas to 
obtain matching funds from business concerns. 
"ELIGIBLE PROGRAMS 
20 use 3994. 
"SEC. 324. (a) IN GENERAL.—A State may use funds from grants 
received in any fiscal year under this part for elementary and 
secondary programs described in this section. The State educational 
agency shall administer such funds, which shall be awarded to such 
programs on a competitive basis. 
"(b) USE OF FUNDS.—Funds from grants received under this part 
may be used for the following: 
"(1) 
IMPROVEMENT OF ELEMENTARY AND SECONDARY RE-
SOURCES.—Such funds may be used for acquisition of equipment, 
instructional and reference materials, and partnership in edu-
cation programs designed to— 
(A) improve instruction in mathematics and science edu-
cation at the elementary and secondary level; 
"(B) improve laboratory facilities, classroom and library 
resources in elementary and secondary mathematics and 
science education; and 
"(C) attract matching dollars and in kind contributions of 
equipment, learning resources or shared time from business 
concerns, libraries, museums, nonprofit private oi^aniza-
tions, professional mathematics and scientific associations, 
and appropriate State agencies. 
"(2) ADVANCED PLACEMENT PROGRAMS.—(A) Such funds may 
be used for advanced placement programs operated by local 
educational agencies that are designed to allow qualified 
secondary students to attend college preparatory schools, col-
leges, or universities on a part-time or full-time basis with 
respect to science and mathematics instruction. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1481 
"(B) A local educational agency that receives funds from a 
grant under this part for an advanced placement program 
described in subparagraph (A) shall allocate to such program a 
percentage of fimds received from the State on a per student 
basis according to— 
"(i) the number of students participating in the program; 
and 
"(U) the instruction tune such students receive under the 
program, 
"LOCAL APPLICATIONS 
"SBC. 325. (a) EUGIBILITY.—An applicant that desires to receive a 20 use 3995. 
grant under this part shall submit an application to the State 
educational agency, at such time, and in such manner, as the State 
may require. Such application may take the form of an amendment 
to an assessment submitted by the local educational agency under 
section 210, if appropriate. 
"(b) REQUIREMENTS FOR APPLICATION.—^The State shall require 
each application to include— 
"(1) a description of the activities for which assistance under 
this part is sought; 
"(2) assurances that not more than 5 percent of the amount 
received by the applicant in any fiscal year shall be expended on 
administrative expenses; 
"(3) if the funds are to be used for improvement of elementary 
and secondary resources as described in subsection (bXl)— 
"(A) an estimate of the amount to be spent on equipment, 
facilities improvement, library resources, and classroom 
instructional material; 
"(B) an estimate of the number of elementary and second-
ary students who will be aided by activities and expendi-
tures under the grant; 
"(Q assurances that— 
"(i) except as provided in subsection (c), a minimum 
of 25 percent of the funds for each project will be 
supplied by business concerns within the community; 
"(ii) no stipend shall be paid directly to employees of 
a profitmaking business concern; 
"(iii) provision shall be made for the equitable 
participation in the project of children who are en-
rolled in private elementary and secondary schools; 
and 
"(iv) consideration will be given to programs and 
activities designed to meet the needs of educationally 
disadvantaged and other traditionally underserved 
populations; and 
"(4) if the funds are to be used for advanced placement 
programs as described in subsection (bX2), a commitment as to 
the percentage of funds received from the State on a per student 
basis that ^all be used by the local educational agency to 
de&ay costs of the advanced placement program. 
"(c) WAIVER.—^The State may waive or reduce the amount of 
matching fimds required under subsection (bX3XCXi) if the State 
determines that— 
"(1) substantial need exists in the area served by the 
applicant for a grant under this part; and 
102 STAT. 1482 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(2) the required amount of matching funds cannot be made 
available. 
"(d) JOINT APPUCATIONS.—A regional consortium of applicants in 
2 or more local school districts may Hie a joint application under 
subsection (a). 
"SUBMISSION OF APPUCATIONS 
20 use 3996. 
"SEC. 326. An applicant within a State that desires to receive a 
grant under this chapter shall submit an application prepared in 
accordance with section 325 to the State educational agency for 
approval. Each application with respect to funds for improvement of 
elementary and secondary resources under section 324(bXl) shall be 
submitted jointly by the local educational agency and each business 
concern or other party that is to participate in the activities for 
which assistance is sought. 
"APPROVAL OF APPUCATIONS 
20 use 3997. 
"SEC. 327. (a) CRITERIA.—The State shall establish criteria for 
approval of applications under this section. Such criteria shall 
include— 
"(1) consideration of the local district's need for, and inability 
to locally provide for, the activities, equipment, library and 
instructional materials requested; 
"(2) the number and nature of elementary and secondary 
students who will benefit from the planned program; and 
"(3) the expressed level of financial and in-kind commitment 
from other parties to the program. 
"0)) APPROVAL PROCEDURES.—The State shall adopt approval 
procedures designed to ensure that grants are equitably distributed 
among— 
Rural areas. 
"(1) rural, Urban, and suburbsin areas; and 
Urban areas. 
"(2) small, medium, and large local educational agencies. 
Suburban areas. 
"COMPUTATION OF GRANT AMOUNTS 
20 use 3998. 
"SEC. 328. (a) PAYMENTS TO GRANTEES.— 
"(1) PAYMENT BY STATE.—The State shall pay to the extent of 
amounts received by it from the Secretary under this part, to 
each applicant having an application approved under section 
327, the Federal share of the cost of the program described in 
the application. 
"(2) AMOUNT.—(A) Except as provided in subparagraph (B), 
the Federal share for each fiscal year shall be 75 percent. 
"(B) In the case of an applicant that receives a waiver under 
section 325(c), the Federal share for each fiscal year may be as 
much as 100 percent. 
"(3) NON-FEDERAL SHARE.—The non-Federal share of pay-
ments under this part may be in cash or in kind, fairly evalu-
ated, including plant, equipment, or services. 
"(b) PAYMENTS TO STATES.—Except as provided in subsection (c), 
each State shall receive under this part the greater of— 
"(1) ah^|unount equal to its share of funds appropriated under 
chapter 1 of 
the Education dlonsolidation and Improvement Act; 
or 
\ ^ 
"(2) $225,000. 
\ ^ 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1483 
"(c) RKDUCTION FOR INSUFFICIENT FUNDING.—If sums appropriated 
to carry out tliis part are not sufficient to permit the Secretary to 
pay in fiill tiie grants which States may receive under subsection (b), 
the amount of such grants shall be ratably reduced.", 
(b) CoNFOHioNG AMENDMENTS.— 
(1) TITLE HEADING.—^The title heading of such title is amended 
to read as follows: 
"TITLE III—PARTNERSHIPS IN EDUCA-
TION FOR MATHEMATICS, SCIENCE, 
AND ENGINEERING". 
(2) REFERENCES.—^Part A of such title (as redesignated by 
subsection (a)) is amended by striking out "title" each place ^oJJSC 3981 et 
such term appears and inserting in lieu thereof "part". 
CHAPTER 5—EDUCATIONAL PARTNERSHIPS 
seq. 
Educational 
Partnerships Act 
of 1988. 
SEC. 6041, SHORT TITLE. 
20 USC 5031. 
This chapter may be cited as the "Educational Partnerships Act of 
1988" 
SEC. 6042. PURPOSE. 
20 USC 5032. 
It is the purpose of this chapter to encourage the creation of 
alliances between public elementary and secondary schools or 
institutions of higher education and the private sector in order to— 
(1) apply the resources of the private and nonprofit sectors of 
the community to the needs of the elementary and secondary 
schools or institutions of higher education, as the case may 
be, in that community designed to encourage excellence in 
education; 
(2) encourage business to work with educationally disadvan-
taged students and with gifted students; 
(3) apply the resources of communities for the improvement of 
elementary and secondary education or higher education, as the 
case may be; and 
(4) enrich the career awareness of secondary or postsecondary 
school students to exposures to the private sector and their 
work. 
SEC 6043. PROGRAM AUTHORIZED. 
20 USC 5033. 
(a) GRANTS TO EhjGiBLE PARTNERSHIPS.—^The Secretary may make 
grants to eligible partnerships to pay the Federal share of the costs 
of the activities described in section 6144. 
(b) AUTHORIZATION OF APPROPRIATIONS.—^There are authorized to 
be appropriated $10,000,000 for fiscal year 1988 and such sums as 
may be nec^sary for each of fiscal years 1989 through 1993 to carry 
out the provisions of this chapter. 
SEC. 6044. AUTHORIZED ACnVITIES. 
20 USC 5034. 
An eligible partnership may use payments received under this 
chapter in any fiscal year for— 
(1) model cooperative programs designed to apply the re-
sources of the private and nonprofit sectors of the community to 
102 STAT. 1484 
PUBLIC LAW 100-418—AUG. 23, 1988 
the elementary and secondary schools of the local educational 
agency or institutions of higher education in that community; 
(2) projects designed to encourage business concerns and other 
participants in the eligible partnership, to work with education-
ally disadvantaged students and with gifted students in the 
elementary and secondary schools of locaJ educational agencies 
or institutions of higher education; 
(3) projects designed to apply the resources of the community 
to the elementary and secondary schools of the local educational 
agency or institutions of higher education in that community to 
improve the education of students in such schools; 
(4) projects which are designed to address the special edu-
cational needs of gifted and talented children in the elementary 
and secondary schools of such agencies which are conducted 
with the support of the private sector; 
(5) projects designed to enrich the career awareness of second-
ary or postsecondary school students through exposure to offi-
cers and employees of business concerns and other agencies and 
organizations participating in the eligible partnership for 
education; 
(6) projects for statewide activities designed to carry out the 
purpose of this chapter, including the development of model 
State statutes for the support of cooperative arrangements be-
tween the private sector and the elementary and secondary 
schools or institutions of higher education within the State; 
(7) special training projects for staff designed to develop skills 
necessary to facilitate cooperative arrangements between the 
private and nonprofit sectors and the elementary and secondary 
schools of local educational agencies or institutions of higher 
education; 
(8) academic internship programs, including where possible 
academic credit, involving activities designed to carry out the 
purpose of this chapter; and 
(9) projects encouraging tutorial and volunteer work in the 
elementary and secondary schools of local education agencies 
or institutions of higher education by personnel assigned 
from business concerns and other participants in the eligible 
partnership. 
20 use 5035. 
SEC. 6045. APPLICATION. 
Grants. 
(a) IN GENERAL.—An eligible partnership which desires to receive 
a grant imder this chapter shall submit an application to the 
Secretary, at such time, in such manner, and accompanied by such 
additional information as the Secretary may reasonably require. 
Each such application shsdl— 
(1) describe the activities for which cissistance under this 
chapter is sought; 
(2) provide assurances that the eligible partnership will pay 
the non-Federal share of the activities for which assistance is 
sought from non-Federal sources; 
(3) provide assurances that the eligible partnership will t£ike 
such steps as may be available to it to continue the activities for 
which the eligible partnership is making application after the 
period for which assistance is sought; 
(4) provide assurances— 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1485 
(A) that the educational partnership will disseminate 
information on the model program for which assistance is 
sought; and 
(B) that not more than 1 percent of the grant in any fiscal 
year may be expended for the purpose described in subpara-
graph (A); and 
(5) provide such additional assurances as the Secretary deter-
mines to be essential to ensure compliance with the require-
ments of this chapter, 
(b) JOINT APPUCATION.—A consortium of eligible alliances may 
file a joint application under the provisions of subsection (a) of this 
section. 
SEC. 6046. APPROVAL OF APPLICATION. 
20 USC 5036. 
(a) IN GENERAL.—The Secretary shall approve applications in 
accordance with uniform'criteria established by the Secretary. 
(b) RESTRICTION.—The Secretary may not approve an application if 
the State educational agency for the State in which the institution is 
located, or, in the case of a consortium of institutions, in which any 
institution in the consortium is located, notifies the Secretary that 
the application is inconsistent with State plans for elementary and 
secondary education in the State. 
SEC. 6047. COMPUTATION OF GRANT AMOUNTS. 
20 USC 5037. 
(a) COMPUTATION.— 
(1) IN GENERAL.—The Secretary shall pay to each eligible 
partnership having an application approved under section 6046 
the Federal share of the cost of the activities described in the 
application. 
(2) FEDERAL SHARE.—The Federal share shall be— 
(A) 90 percent for the first year for which an eligible 
partnership receives assistance under this chapter; 
(B) 75 percent for the second such year; 
(C) 50 percent for the third such year; and 
(D) 33 % percent for the fourth such yeeu:. 
(3) NON-FEDERAL SHARE.—The non-Federal share of payments 
under this chapter may be in cash or in kind fairly evaluated, 
including planned equipment or services. 
0)) RESTRICTION.—The total amount of funds paid under this 
chapter during any fiscal year to eligible partnerships in any single 
State may not be greater than the greater o
f
— 
(1) an amount equal to 15 percent of the funds appropriated 
under this chapter for that fiscal year; or 
(2) $1,000,000. 
SEC. 6048. EVALUATION AND DISSEMINATION. 
20 USC 5038. 
(a) ANNUAL EVALUATION.—The Secretary shall conduct an annual 
evaluation of grants made under this chapter to determine— 
(1) the type of activities assisted under this chapter; 
(2) the impact upon the educational characteristics of the 
elementary and secondary schools and institutions of higher 
education from activities £issisted under this chapter; 
(3) the extent to which activities assisted under this chapter 
have improved or expanded the nature of support for ele-
mentary and secondary education in the community or in the 
State; and 
19-194 O—91—Part 2 
16 : QL 3 
102 STAT. 1486 
PUBLIC LAW 100-418—AUG. 23, 1988 
20 use 5039. 
Grants. 
Star Schools 
Program 
Assistance Act. 
(4) a list of specific activities assisted under this chapter 
which show promise as model programs to carry out the purpose 
of this chapter, 
(b) DISSEMINATION OF iNFORMAnoN.^The Secretary shall dissemi-
nate to State and local educational agencies and other participants 
in the eligible alliance program information relating to the activi-
ties assisted under this diapter. 
SEC 6049. DEFINITIONS. 
As used in this chapter— 
(1) The term ''elementary schooV' has the same meaning 
aven that term under section 198(aX7) of the Elementary and 
Secondary Education Act of 1965. 
(2) The term "eligible partnership" means— 
(A) a local educational agency or an institution of higher 
education, or both, and 
(B) business concerns, community-based organizations, 
nonprofit private oiganizations, museums, libraries, edu-
cational television and radio stations, and if the State 
agrees to participate, appropriate State agencies. 
(3) The term ''institution of higher education" has the same 
meaning given that term by section 481(aXl) of the Higher 
Education Act of 1965. 
(4) The term "secondary school" has the same meaning 
given that term under section 198(aX7) of the Elementary 
and Secondary Education Act of 1965. 
CHAPTER 
6—STAR 
SCHOOLS 
PROGRAM 
SEC. CeSl. PROGRAM AUTHORIZED. 
The Education for Economic Security Act is amended by adding at 
the end thereof the following new titie: 
«nTLE IX—STAR SCHOOLS PROGRAM 
"SHORT TTTLB 
"SBC. 901. This titie may be dted as the 'Star Schools Program 
Assistance Act*. 
"STATEMENT OF PUBFOSB 
"SEC. 902. It is the purpose of this titie to encourage improved 
instruction in mathematics, science, and foreign languages as well 
as other subjects such as vocational education tibrough a star schools 
program under which demonstration grants are made to eligible 
telecommunications partnerships to enable such eligible tele-
communications partnerships to develop, construct, and acquire 
telecommunications audio and visual facilities and equipment, to 
develop and acquire instructional programming, and obtain tech-
nical assistance for the use of such facilities and instructional 
programming. 
"FBOGBAM AUTHORIZED 
"SEa 903. (a) GENERAL AuTHORrrr.—^The Secretary is authorized, 
in accordance with the provisions of this title, to make grants to 
eligible telecommunications partnerships for the Federal share of 
the cost of the development, construction, and acquisition of tele-
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1487 
communications facilities and equipment, of the development 
and acquisition of instructional programming, and of technical 
£issistance. 
"(b) AUTHORIZATION OF APPROPRIATIONS.—(1) There is authorized 
to be appropriated $100,000,000 for the period beginning October 1, 
1987, and ending September 30,1992. 
"(2) No appropriation in excess of $20,000,000 may be made in 
fiscal year 1988, and no appropriation in excess of $37,500,000 may 
be made in any of the fiscal years 1989 through 1992 pursuant to 
paragraph (1) of this subsection. 
"(3) Funds appropriated pursuant to this subsection shall remain 
available until expended. 
"(c) LIMITATIONS.—(IXA) A demonstration grant made to an eli-
gible telecommunications partnership under this title may not 
exceed $10,000,000. 
"(B) An eligible telecommunications partnership may receive a 
grant for a second year under this title, but in no event may such a 
partnership receive more than $20,000,000. 
"(2) Not less than 25 percent of the funds available in any fiscal 
year under this Act shall be used for the cost of instructional 
programming. 
"(3) Not less than 50 percent of the funds available in any fiscal 
year under this Act shall be used for the cost of facilities, equip-
ment, teacher training or retraining, technical assistance, or 
programming, for local educational agencies which are eligible to 
receive assistance under chapter 1 of title I of this Act. 
"(d) FEDERAL SHARE.—(1) The Federal share for any fiscal year 
shall be 75 percent. 
"(2) The Secretary may reduce or waive the requirements of the 
non-Federal share required under paragraph (1) of this subsection 
upon a showing of financial hardship. 
"EUGIBLE TELECOMMUNICATIONS PARTNERSHIPS 
"SEC. 904. (a) GENERAL RULE.—In order to be eligible for dem-
onstration grants under this title, an eligible telecommunications 
partnership shall consist of— 
"(1) a public agency or corporation established for the purpose 
of developing and operating telecommunications networks to 
enhance educational opportunities provided by educational 
institutions, teacher training centers, and other entities, except 
that any such agency or corporation shall represent the in-
terests of elementary and secondary schools which are eligible 
to participate in the program under chapter 1 of title I of this 
Act; or 
"(2) a partnership which includes 3 or more of the following, 
and at least one of which shall be an agency described in 
subparagraph (A) or (B), and which will provide a telecommuni-
cations network: 
"(A) a local educational agency, which has a significant Indians. 
number of elementary and secondary schools which are 
eligible for assistance under chapter 1 of title I of this Act 
or elementary and secondary schools operated for Indian 
children by the Department of the Interior eligible under 
section 1005(d) of this Act, 
"(B) a State educational agency, or a State higher edu-
cation agency. 
102 STAT. 1488 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(C) an institution of higher education, 
"(D) a teacher training center which— 
"(i) provides teacher preservice and inservice train-
ing, and 
"(ii) receives Federal financial assistance or has been 
approved by a State agency, or 
"(EXi) a public agency with experience or expertise in the 
planning or operation of a telecommunications network, 
"(ii) a private organization with such experience, or 
"(iii) a public broadcasting entity with such experience. 
"(b) SPECIAL RULE.—An eligible telecommunications partnership 
must be organized on a statewide or multistate basis. 
"APPUCATIONS 
"SEC. 905. (a) APPUCATION REQUIRED.—Each eligible telecommuni-
cations partnership which desires to receive a demonstration grant 
under this title may submit an application to the Secretary, at such 
time, in such manner, and containing or accompanied by such 
information as the Secretary may reasonably require. 
"(b) CONTENTS OF APPUCATION.—Each such application shall— 
"(1) describe the telecommunications facilities and equipment 
and technical assistance for which assistance is sought which 
may include— 
"(A) the design, development, construction, and acquisi-
tion of State or multistate educational telecommunications 
networks and technology resource centers; 
"(B) microwave, fiber optics, cable, and satellite trans-
mission equipment; 
"(C) reception facilities; 
"(D) satellite time; 
"(E) production facilities; 
"(F) other telecommunications equipment capable of serv-
ing a wide geographic area; 
(G) the provision of training services to elementary and 
secondary school teachers (particularly teachers in schools 
receiving assistance under chapter 1 of title I of this Act in 
using the facilities and equipment for which assistance is 
sought; and 
"(H) the development of education£d programming for use 
on a telecommunications network; 
"(2) describe, in the case of an application for assistance for 
instructional programming, the types of programming which 
will be developed to enhance instruction and training; 
"(3) demonstrate that the eligible telecommunications pait-
nership has engaged in sufficient survey and analysis of the 
area to be served to ensure that the services offered by the 
telecommunications partnership will increase the availability of 
courses of instruction in mathematics, science, and foreign lan-
guages, £is well as the other subjects to be offered; 
"(4) describe the teacher training policies to be implemented 
to ensure the effective use of the telecommunications facilities 
and equipment for which assistance is sought; 
"(5) provide assurances that the financial interest of the 
United States in the telecommunications facilities and equip-
ment will be protected for the useful life of such facilities and 
equipment; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1489 
"(6) provide assurances that a significant portion of the facili-
ties, equipment, technical assistance, and programming for 
which assistance is sought will be made available to elementary 
and secondary schools of local educational agencies which have 
a high percentage of children counted for the purpose of chapter 
1 of title I of this Act; 
"(7) describe the manner in which traditionally underserved 
students will participate in the benefits of the telecommuni-
cations facilities, equipment, technical assistance, and program-
ming assisted under this Act; 
"(8) provide assurances that the applicant will use the funds 
to supplement and not supplant funds otherwise available for 
the purpose of this title; and 
"(9) provide such additional assurances as the Secretary may 
reasonably require. 
"(c) APPROVAL OP APPUCATION; PRIORITY.—The Secretary shall, in 
approving applications under this title, give priority to applications 
which demonstrate that— 
"(1) a concentration and quality of mathematics, science, and 
foreign language resources which, by their distribution through 
the eligible telecommunications partnership, will offer signifi-
cant new educational opportunities to network participants, 
particularly to traditionally underserved populations and areas 
with scarce resources and limited access to courses in mathe-
matics, science, and foreign languages; 
"(2) the eligible telecommunications partnership has secured 
the direct cooperation and involvement of public and private 
educational institutions. State and local government, and indus-
try in planning the network; 
"(3) the eligible telecommunications partnership will serve 
the broadest range of institutions, including public and private 
elementary and secondary schools (particularly schools having 
significant numbers of children counted for the purpose of 
chapter 1 of title I of this Act, programs providing instruction 
outside of the school setting, institutions of higher education, 
teacher training centers, research institutes, and private 
industry; 
"(4) a significant number of educational institutions have 
agreed to participate or will participate in the use of the 
telecommunications s}rstem for which assistance is sought; 
"(5) the eligible telecommunications partnership will have 
substantial academic and teaching capabilities including the 
capability of training, retraining, and inservice upgrading of 
teaching skills; 
"(6) the eligible telecommunications partnership will serve a 
multistate area; and 
"(7) the eligible telecommunications partnership will, in 
providing services with assistance sought under this Act, meet 
the needs of groups of individuals traditionally excluded from 
careers in mathematics and science because of discrimination, 
inaccessibility, or economically disadvantaged backgrounds. 
"(d) GEOGRAPHIC DISTRIBUTION.—In approving applications under 
this title, the Secretary shall assure an equitable geographic 
distribution of grants. 
102 STAT. 1490 
PUBLIC LAW 100-418—AUG. 23, 1988 
"DISSEMINATION OF COURSES AND MATERIALS UNDER THE STAR 
SCHOOLS PROGRAM 
"SEC. 906. (a) REPORT.—Each eligible telecommunications partner-
ship awarded a grant under this Act shall report to the Secretary a 
listing and description of available courses of instruction and mate-
rials to be offered by educational institutions and teacher training 
centers which will be transmitted over satellite, specif3ring the 
satellite on which such transmission will occur and the time of such 
transmission. 
"(Jb) DISSEMINATION OF Ck)URSES OF INSTRUCTION.—The Secretary 
shall compile and prepare for dissemination a listing and descrip-
tion of available courses of instruction and materials to be offered by 
educational institutions and teacher training centers equipped with 
satellite transmission capabilities, as reported to the Secretary 
under subsection (a) of this section. 
"(c) DISSEMINATION TO STATE EDUCATIONAL AGENCIES.—The Sec-
retary shall distribute the list required by subsection 0?) of this 
section to all State educational agencies. 
"DEFINITIONS 
"SEC. 907. As used in this title— 
"(1) the term 'educational institution' means an institution of 
higher education, a local educational agency, and a State edu-
cational agency; 
"(2) the term 'institution of higher education' has the same 
meaning given that term under section 1201(a) of the Higher 
Education Act of 1965; 
"(3) the term 'local educational agency' has the same meaning 
given that term under section 198(aX10) of the Elementary and 
Secondary Education Act of 1965; 
"(4) the term 'instructional programming' means courses of 
instruction, and training courses, and materials for use in such 
instruction and training which have been prepared in audio and 
visual form on tape, disc, film, or live, and presented by means 
of telecommunications devices; 
"(5) the term 'public broadcasting entity' has the same mean-
ing given that term in section 397 of the Communications Act of 
1934; 
"(6) the term 'Secretary' means the Secretary of Education; 
"(7) the term 'State educational agency' has the same mean-
ing given that term under section 198(aX17) of the Elementary 
and Secondary Education Act of 1965; and 
"(8) the term 'State' means each of the several States, the 
District of dlolumbia, the Commonwealth of Puerto Rico, Guam, 
American Samoa, the Virgin Islands, the Trust Territory of the 
Pacific Islands, and the dlommonwealth of the Northern 
Mariana Islands.". 
SEC. 6052. APPLICABILITY PROVISION. 
The amendment made by this chapter shall not take effect if the 
Augustus F. Hawkins-Robert T. Stafford Elementary and Secondary 
School Improvement Amendments of 1988 is enacted prior to the 
enactment of this Act. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1491 
CHAPTER 7—PROJECTS AND PROGRAMS DE- G
r
a
n
t
s 
SIGNED 
TO 
ADDRESS 
SCHOOL 
DROPOUT 
PROBLEMS 
AND TO 
STRENGTHEN 
BASIC 
SKILLS INSTRUCTION 
Subchapter A—Assistance to Address School Dropout S
c
h
o
o
l D
r
o
p
o
u
t 
Problems 
'School Dropout Demonstra-
SEC 6061. SHORT TITLE. 
This subchapter may be cited as the 
tion Assistance Act of 1988". 
SEC 6062. PURPOSE. 
The purpose of this subchapter is to reduce the number of chil-
dren who do not complete their elementary and secondary education 
by providing grants to local educational agencies to establish and 
demonstrate— 
(1) efTective programs to identify potential student dropouts 
and prevent them from dropping out; 
(2) efTective pn^n^ams to identify and encourage children who 
have already dropped out to reenter school and complete their 
elementary and secondary education; 
(3) efTective early intervention pn^rams designed to identify 
at-risk students in elementary and secondary schools; and 
(4) model systems for collecting and reporting information to 
local school officials on the number, ages, and grade levels of 
the children not completing their elementary and secondary 
education and the reasons why such children have dropped out 
of school. 
SEC 6063. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to carry out this sub-
chapter $50,000,000 for the fiscal year 1988. 
SEC 6064. GRANTS TO LOCAL EDUCATIONAL AGENCIES. 
(a) ALLOTBIENT TO CATEGORIES OP LOCAL EDUCATIONAL AGENCIES.— 
From the amount appropriated under section 6063 for any fiscal 
year, the Secretary shall allot the following percentages to each of 
the following cat^ories of local educational s^encies: 
(1) Local educational agencies administering schools with a 
total enrollment of 100,000 or more elemental and secondary 
school students shall be allotted 25 percent of the amount 
appropriated. 
(2) Local educational agencies administering schools with a 
total enrollment of at least 20,000 but less than 100,000 ele-
mentary and secondary school students shall be allotted 40 
percent of the amount appropriated. 
(3) Local educational agencies administering schools with a 
total enrollment of less than 20,000 elemental^ and secondary 
school students shall be allotted 30 percent of the amount 
appropriated. Grants may be made under this paragraph to 
intermediate educational units and consortia of not more than 5 
local educational agencies in any case in which the total enroll-
ment of the laigest such local educational agency is less than 
20,000 elementary and secondary students. Such units and con-
Demonstration 
Assistance Act of 
1988. 
20 use 5051. 
20 use 5052. 
20 use 5053. 
20 use 5054. 
102 STAT. 1492 
PUBLIC LAW 100-418—AUG. 23, 1988 
sortia may also £ipply in conjunction with the State educational 
agency. Not less than 20 percent of funds available under this 
paragraph shall be awarded to local educational agencies 
administering schools with a total enrollment of less than 2,000 
elementary and secondary school students. 
(4) Community-based organizations shall be allotted 5 percent 
of the amount appropriated. Grants under this category shall be 
made 
after 
consultation 
between 
the 
community-based 
organization and the local educational agency that is to benefit 
from such a grant. 
0)) SPECIAL TREATMENT OF EDUCATIONAL PARTNERSHIPS.—(1) The 
Secret£iry shall allot 25 percent of the funds available for each 
category described in paragraphs (1), (2), and (3) of subsection (a) of 
this section to educational partnerships. 
(2) Educational partnerships under this subsection shall include— 
(A) a local educational agency; and 
(B) a business concern or business organization, or, if an 
appropriate business concern or business organization is not 
avail£ut>le, one of the following: any community-based organiza-
tion, nonprofit private organization, institution of higher edu-
cation, State educational agen(^. State or loc£d public agency, 
private industry council (established under the Job Training 
Partnership Act), museum, library, or educational television or 
broadcasting station. 
(c) AWARD OF GRANT.—From the amount allotted for any fiscal 
year to a category of local educati(mal agencies under subsection (a), 
the Secretary shall award as many grants as practicable within each 
such category to local educational agencies and educational partner-
ships whose applications have been approved by the Secretary for 
such fiscal year under section 6065 and whose applications propose a 
program of sufficient size and scope to be of value as a demonstra-
tion. The grants shall be made under such terms and conditions as 
the Secretary shall prescribe consistent with the provisions of this 
subchapter. 
(d) USE OF FUNDS WHEN NOT FULLY NEEDED FOR EDUCATIONAL 
PARTNERSHIPS.—(1) Whenever the Secretary determines that the full 
amount of the sums made available under subsection O
t
>
) in each 
cat^ory for educational partnerships will not be required for ap-
plications of educational partnerships, the Secretary shall make the 
amount not so required available to local educational ag^icies in the 
same category in which the funds are made available. 
(2) In order to transfer funds under this subsection, the Secretary 
shall use a peer review process to determine that such excess funds 
are not needed to fund educational partnerships and shall prepare a 
list of the categories in which additional funds are available, and the 
reasons therefor, and make such list available to local educational 
agencies upon request. The Secretary may use the peer review 
process to determine grant recipients of funds transferred in accord-
ance with this subsection. 
(e) USE OF FUNDS WHEN NOT FULLY ALLOTTED TO CATEGORIES 
UNDER SUBSECTION (a).—(1) Whenever the Secretary determines 
that the full amount of the sums allotted under any category set 
forth under subsection (a) will not be required for applications of the 
local educational agencies in the case of categories (1) through (3), 
the Secretary shall make the amount not so required available to 
another category under subsection (a). In carrying out the provisions 
of this subsection, the Secretary shcdl assure that the transfer of 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1493 
amounts from one cat^ory to another is made to a cat^ory in 
which there is the greatest need for funds. 
(2) In order to transfer funds under this subsection, the Secretary 
shall use a peer review process to determine that such excess funds 
are not needed to fund projects in particular cat^ories and shall 
prepare a list of the cat^;ories in which funds were not fully 
expended and the reasons therefor, and make such list available to 
locsd educational agencies and educational partnerships, upon 
request. The Secretary may use the peer review process to deter-
mine grant recipients of funds transferred in accordance with this 
subsection. 
(f) FEDERAL SHARE.—(1) The Federal share of a grant under this 
sdbchapter may not exceed— 
(A) 90 percent of the total cost of a project for the first year 
for which the project receives assistance under this subchapter, 
and 
(B) 75 percent of such cost for the second such year. 
(2) The remaining cost of a project tbat receives assistance under 
this subchapter may be paid from any source other than fimds made 
available under this subchapter, except that not more than 10 
percent of the remaining cost in any fiscal year may be provided 
finom Federal sources other than this subchapter. 
(3) The share of payments from sources other than funds made 
available under this subchapter may be in cash or in kind fairly 
evaluated, including plant, equipment or services. 
SEC. 6065. APPUCATION. 
20 USC 5055. 
(a) IN GENERAL.—(1) A grant under this subchapter may be made 
only to a local educational agency or an educational partnership 
which submits an application to the Secretary containing such 
information as may be required by the Secretary by regulation. 
(2) Applications shall be for a 1-year period. 
(b) CONTENTS OF AFPUCATION.—^Each such application shall— 
(1) provide documentation of— 
(A) the number of children who were enrolled in the 
schools of the applicant for the 5 academic years prior to 
the date application is made who have not completed their 
elementary or secondary education and who are classified 
as school dropouts pursuant to section 4141(bX5) of the 
Drug-Free Schools and Communities Act of 1986; and 
(B) the percentage that such number of children is of the 
total school-age population in the applicant's schools; 
(2) include a plan for the development and implementation of 
a dropout information collection and reporting system for docu-
menting the extent and nature of the dropout problem; 
(3) include a plan for coordinated activities involving at least 
1 high school and its feeder junior high or middle schools and 
elementary schools for local educational agencies that have 
feeder systems; 
(4) include a plan for the development and implementation of 
a project including activities designed to carry out the purposes 
of this subchapter, such as— 
(A) implementing identification, prevention, outreach, or 
reentry projects for dropouts and potential dropouts; 
(B) addressing the special needs of school-age parents; 
(C) disseminating information to students, parents, and 
the community related to the dropout problem; 
102 STAT. 1494 
PUBLIC LAW 100-418—AUG. 23, 1988 
(D) as appropriate, including coordinated services and 
activities with programs of vocational education, adult 
basic education, and programs under the Job Training 
Partnership Act; 
(E) involving the use of educational and telecommuni-
cations and broadcasting technologies and educational 
materials for dropout prevention, outreach, and reentry; 
(F) providing activities which focus on developing occupa-
tional competencies which link job skill preparation and 
training with genuine job opportunities; 
(G) establishing annual procedures for— 
(i) evaluating the effectiveness of the project; and 
(ii) where possible, determining the cost-effectiveness 
of the particular dropout prevention and reentry 
methods used and the potential for reproducing such 
methods in other areas of the country; 
(H) coordinating, to the extent practicable, with other 
student dropout activities in the community; or 
(I) using the resources of the community and parents to 
help develop and implement solutions to the local dropout 
problem; and 
(5) contain such other information as the Secretary considers 
necessary to determine the nature of the local needs, the quedity 
of the proposed project, and the capability of the applicant to 
carry out the project. 
(c) PRIORITY.—The Secretary shall, in approving applications 
under this section, give priority to applications which both show the 
replication of successful programs conducted in other local edu-
cational agencies or the expansion of successful programs within a 
local educational agency and reflect very high numbers or very high 
percentages of school dropouts in the schools of the applicant in 
each category described in section 6064(a). 
(d) SPECIAL CONSIDERATION.—The Secretary shall give additional 
special consideration to applications that include— 
(1) provisions which emphasize early intervention services 
designed to identify at-risk students in elementary or early 
secondary schools; and 
(2) provisions for significant parental involvement. 
20 use 5056. 
SEC. 6066. AUTHORIZED ACTIVITIES. 
(a) IN GENERAL.—Grants under this subchapter shall be used to 
carry out plans set forth in applications approved under section 
6065. In addition, grants may be used for educational, occupational, 
and basic skills testing services and activities, including, but not 
limited to— 
(1) the establishment of systemwide or school-level policies, 
procedures, and plans for dropout prevention £uid school 
reentry; 
(2) tne development and implementation of activities, includ-
ing extended day or summer programs, designed to address poor 
achievement, basic skills deflciencies, language deflciencies, or 
course failures, in order to assist students at risk of dropping 
out of school and students reentering school; 
(3) the establishment or expansion of work-study, apprentice, 
or internship programs; 
Contracts. 
(4) the use of resources of the community, including contract-
ing with public or private entities or community-based organiza-
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1495 
tions of demonstrated performance, to provide services to the 
grant recipient or the target population; 
(5) the evaluation and revision of program placement of stu-
dents at risk; 
(6) the evaluation of program efTectiveness of dropout 
programs; 
C
O the development and implementation of programs for 
traditionally underserved groups of students; 
(8) the implementation of activities which will improve stu-
dent motivation and the school learning environment; 
(9) the provision of ta-aining for school staff on strat^es and 
techniques designed to— 
(A) identify children at risk of dropping out; 
(B) intervene in the instructional program with support 
and remedial services; 
(C) develop realistic eiq)ectations for student perform-
ance; and 
(D) improve student-staff interactions; 
(10) the study of the relationship between drugs and dropouts 
and between youth gangs and dropouts, and the coordination of 
dropout prevention and reentry programs with appropriate 
drug prevention and community oiganizations for the preven-
tion dT 
youth ganger 
(11) llie study of tiie relationship between handicapping condi-
tions and student dropouts; 
(12) the study of the relationship between the dropout rate for 
gifted and talented students compared to the dropout rate for 
the general student enrollment; 
(13) the use of educational teleconmiunications and broadcast-
ing technologies and educational materials designed to extend, 
motivate, and reinforce school, community, and home dropout 
prevention and reentry activities; and 
(14) the provision of other educational, occupational and test-
ing services and activities which directiy relate to the purpose 
of this subchapter. 
(b) AcnvFnES FOR EDUCATIONAL PABTNESSHIPS.—Grants under 
this subchapter may be used by educational partnershijps for— 
(1) activities which offer jobs and college admissions for 
successful completion of the program for which assistance is 
sou^t^ 
(2) internship, work study, or apprenticeship programs; 
(3) summer employment programs; 
(4) occupational training programs; 
(^ career opportunity and skills counseling; 
(6) job placement services; 
(7) the development of skUl employment competency testing 
programs; 
(8) special school staff training projects; and 
(9) any other activity described in subsection (a). 
SEC 6067. DISTRIBUTION OF ASSISTANCE; UMTTATION ON COSTS. 
(a) DcrrsiBirnoN OF ASSISTANCE.—^The Secretary shall ensure that, 
to the extent practicable, in approving grant applications under this 
subchapter— 
(1) grants are equitably distributed on a geographic basis 
within each cat^oiy set forth in section 6064(a); 
Drugs and drug 
abuse. 
Communications 
and 
telecommunications. 
20 use 5057. 
102 STAT. 1496 
PUBLIC LAW 100-418—AUG. 23, 1988 
Secondary 
Schools Basic 
Skills 
Demonstration 
Assistance Act of 
1988. 
Grants. 
Disadvantaged 
persons. 
20 use 5061. 
20 use 5062. 
20 use 5063. 
20 use 5064. 
20 use 5065. 
(2) the amount of a grant to a local educational agency for a 
fiscal year is proportionate to the extent and severity of the 
local school dropout problem; 
(3) not less tlmn 30 percent of the amount available for grants 
in each fiscal year is used for activities relating to school 
dropout prevention; and 
(4) not less than 30 percent of the amount available for grants 
in each fiscal year is used for activities relating to persuading 
school dropouts to return to school and assisting former school 
dropouts with specialized services once they return to school. 
(b) ADiONiffrRATiVE CiosTS.—^Not more than 5 percent of any grant 
made under this subchapter may be used for administrative costs. 
Subchapter B—^Assistance to Provide Basic Skills 
Improvement 
SEC 6071. SHORT TTTLE. 
This subchapter may be cited as the ''Secondary Schools Basic 
Skills Demonsfaration Assistance Act of 1988". 
SEC 6072. PURPOSE. 
It is the purpose of this subchapter to provide assistance to local 
educational agencies with high concentrations of children from low-
income families to improve the achievement of educationally dis-
advantaged children enrolled in the secondary schools of such 
agencies. 
SEC 6073. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to carry out this sub-
chapter $200,000,000 for fiscal year 1988. 
SEC 6074. GRANTS TO LOCAL EDUCATIONAL AGENCIES. 
(a) GENERAL AUTHORITT.—^From the amount appropriated under 
section 6073 for any fiscal year the Secretary shall make grants to 
local educational agencies in acconkmoe with the provisions of this 
subchapter. 
0>) COMMUNITT-BASED ORGANIZATIONS RULE.—Each local edu-
cational agency may carry out the activities described in section 
6075 in cooperation with community-based organizations. 
(c) EhJGiBLE STUDENTS.—Secondary school students who meet the 
requirements of part A of chapter 1 of title I of the Elementary and 
Secondary Education Act of 1965 other than the requirement of 
attendance in the designated school attendance area shall be eligible 
to participate in programs and activities assisted under this 
subchapter. 
SEC 607S. AUTHORIZED ACTIVITIES. 
(a) IN GENERAL.—^Funds made available under this subchapter 
may be used— 
(1) to initiate or expand programs designed to meet the special 
educational needs of secondary school students and to help such 
students attain grade level proficiency in basic skills, and, as 
appropriate, learn more advanced skills; 
(2) to develop innovative approaches— 
(A) for surmounting barriers that make secondary school 
programs under this subchapter difficult for certain stu-
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1497 
dents to attend and difficult for secondary schools to admin-
ister, such as scheduling problems; and 
(B) for courses leading to successful completion of the 
general educational development test or of graduation 
requirements; 
(3) to develop and implement innovative programs involving 
community-based organizations or the private sector, or both, to 
provide motivational activities, pre-emplo)rment training, or 
transition-to-work activities; 
(4) to provide programs for eligible students outside the 
school, with the goal of reaching school dropouts who will not 
reenter the traditional school, for the purpose of providing 
compensatory education, basic skills education, or courses for 
general educational development; 
(5) to use the resources of the community to assist in provid-
ing services to the tai^et population; 
(6) to provide training for staff who will work with the target 
population on strategies and techniques for identifying, 
instructing, and assisting such students; 
(7) to provide guidance and counseling activities, support 
services, exploration of postsecondary educational opportuni-
ties, youth employment activities, and other pupil services 
which are necessary to assist eligible students; or 
(8) to recruit, train, and supervise secondary school students 
(including the provision of stipends to students in greatest need 
of financial assistance) to serve as tutors of other students 
eligible for services under this subchapter and under part A of 
chapter 1 of title I of the Elementary and Secondary Education 
Act of 1965, in order to assist such eligible students with 
homework assignments, provide instructional activities, and 
foster good study habits and improved achievement. 
(b) LIMITATION.—Not more than 25 percent of amounts available 
to a local educational agency under this subchapter may be used by 
such agency for noninstructional services such as those described in 
subsections (aX3), (aX5), and (aX7). 
SEC. 6076. APPLICATION. 
20 USC 5066. 
(a) IN GENERAL.—(1) A grant under this subchapter may be made 
only to a local educational agency which submits an application to 
the Secretary containing or accompanied by such information as the 
Secretary may reasonably require. 
(2) Applications shall be for a 1-year period. 
(b) CONTENTS OF APPUCATION.—Eiach such application shall 
include— 
(1) a description of the program goals and the manner in 
which funds will be used to initiate or expand services to 
secondary school students; 
(2) a description of the activities and services which will be 
provided by the program (including documentation to dem-
onstrate that the local educationsd agency has the qualified 
personnel needed to develop, administer, and implement the 
program under this subchapter); 
(3) a list of the secondary schools within the local educational 
agency in which programs will be conducted and a description 
of the needs of the schools, in terms of achievement levels of 
students and poverty rates; 
102 STAT. 1498 
PUBLIC LAW 100-418—AUG. 23, 1988 
(4) an assurance that programs will be operated in secondary 
schools with the greatest need for assistance, in terms of 
achievement levels and poverty rates; 
(5) an assurance that parents of eligible students will be 
involved in the development and implementation of programs 
under this subchapter; 
(6) a statement of the methods which will be used— 
(A) to ensure that the pn^rams will serve eligible stu-
dente most in need of the activities and services provided by 
this subchapter; and 
03) an assurance that services will be provided under this 
subchapter to special populations, such as individuals with 
limited EInglish proficiency and individuals with handicaps; 
(7) an assurance tiiat the program will be of sufficient size, 
scope, and quality to offer reasonable promise of success; 
(8) a description of the manner in which the agency will 
provide for equitable participation of private school students 
under provisions applicable to chapter 1 of title I of the Ele-
mentaiy and Secondary Education Act of 1965, relating to 
participation of children enrolled in private schools; 
(9) a description of the methods by which the applicant will 
coordinate programs under this subchapter with pn^rams for 
the eligible student population operated by community-based 
organizations, social service organizations and agencies, private 
sector entities, and other agencies, organizations, and institu-
tions, and with programs conducted under the Carl D. Perkins 
Vocational Education Act, the Job Training Partnership Act, 
^ 
and other relevant Acts; and 
(10) such other information as the Secretary may require to 
determine the nature and quality of the proposed project and 
the applicant's ability to carry out the project. 
(c) APPROVAL OF APPUCATIONS.—(1) The Secretary shall, in 
approving applications under this section, give special consideration 
to programs tiiat— 
(A) demonstrate the greatest need for services assisted under 
this subchapter on their numbers or proportions of secondary 
school chUdren from low-income families and numbers or 
proportions of low-achieving secondary school children; and 
(B) offer innovative approaches to improving achievement 
among eligible secondaiy school children and offer approaches 
which show promise for repUcation and dissemination. 
Urban areas. 
(2) The Secretary shall ensure that programs for which applica-
Rural areas. 
tions are approved under this section are representative of uii)an 
and rural r^ons in the United States. 
(d) AoMnnsTRATivE COSTS.—^Not more than 5 percent of any grant 
under this subchapter may be used for administrative costs. 
Subchapter C—General Provisions 
20 use 5071. 
SEC. 6081. GENERAL PROVISIONS. 
(a) DEFINITION OP SCHOOL DROPOUT.—^The Secretary shall, not 
later than 60 days after the date of the enactment of this chapter, 
establish a standard definition of a school dropout, after consulta-
tion with pertinent organizations and groups. 
Qb) TncELY AWARD OF GRANTS.—^To the extent possible, for any 
fiscal year the Secretary shall award grants to local educational 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1499 
agencies and educational partnerships under this subchapter not 
later than June 30 preceding such fiscal year. 
(c) GRANTS MUST SUPPLEMENT OTHER FUNDS.—A local educational 
agency receiving Federal funds under this chapter shsdl use such 
Federal funds only to supplement the funds that would, in the 
absence of such Federal funds, be made available from non-Federal 
sources or under provisions of Federal law other than this chapter 
for activities described in subchapter A or subchapter B of this 
chapter, as the case may be. 
(d) EVALUATION.—The Secretary shall evaluate programs operated Reports. 
with funds received under this chapter, and shall issue a report at 
the end of the grant period, but in no case later than January 30, 
1991. 
(e) CJooRDiNATiON AND DISSEMINATION.—The Secretary shall re-
quire local educational agencies receiving grants under this chapter 
to cooperate with the coordination and dissemination efforts of the 
National Diffusion Network and State educational agencies. 
(f) AUDIT.—The C!omptroller General shall have access for the Records. 
purpose of audit and examination to any books, documents, papers, 
and records of any local educational agency or educational partner-
ship receiving assistance under this chapter that are pertinent to 
the sums received and disbursed under this chapter. 
(g) WITHHOLDING PAYMENTS.—Whenever the Secretary, sifter 
reasonable notice and opportunity for a hearing to any local edu-
cational agency or educationed partnership, finds that the local 
educational agency or educational partnership has failed to comply 
substantially with the provisions set forth in its application ap-
proved under section 6075 or section 6076, the Secretary shall 
withhold payments under this chapter in accordance with section 
453 of the Gfieneral Education Provisions Act until the Secretary is 
satisfied that there is no longer any failure to comply. 
SEC. 6082. DEFINITIONS. 
20 USC 5072. 
(a) As used in this title— 
(1) The term "community-based organization" means a pri-
vate nonprofit organization which is representative of a commu-
nity or significant segments of a community and which has a 
proven record of providing effective educational or related serv-
ices to individuals in the community. 
(2) The term "basic skills" includes reading, writing, mathe-
matics, and computational proficiency as well as comprehension 
and reasoning. 
CHAPTER 8—MISCELLANEOUS 
SEC. 6091. DRUG-FREE SCHOOLS PROGRAM. 
(a) WITHIN STATE ALLOCATIONS.—The second sentence of section 
4124 of the Drug-Free Schools and <:k)mmunities Act of 1986 is 20 use 4624. 
amended to read as follows: "From such sum, the State educational 
agency shall distribute funds for use among areas served by local or 
intermediate educational agencies or consortia on the basis of the 
relative enrollments in public and private, nonprofit schools within 
such areas.". 
(b) EFFECTIVE DATE.—(1) The amendment made by subsection (a) of 20 use 4624 
the Act shall take effect October 27, 1986. 
"°*®-
(2) Notwithstanding paragraph (1), a State educational agency 
may allot fiscal year 1987 funds to local and intermediate edu-
102 STAT. 1500 
PUBLIC LAW 100-418—AUG. 23, 1988 
cational agencies and consortia under section 4124(a) of the Drug-
Free Schools and Communities Act of 1986 on the basis of their 
relative numbers of children in the school-aged population. 
Subtitle B—Technology and Training 
Training 
CHAPTER 1—TRANSFER OF EDUCATION AND TRAINING 
Technology 
SOFTWARE 
Transfer Act of 
1988 
20 use 5091. 
SEC. 6101. SHORT TITLE. 
This chapter may be cited as the "Training Technology Transfer 
Act of 1988^'. 
20 use 5092. 
SEC. 6102. FINDINGS AND PURPOSE. 
(a) FINDINGS.—The Congress finds and declares that— 
(1) Federal agencies, particularly the Department of Defense, 
have made extensive investments of public funds in the develop-
ment of education and training software; 
(2) much knowledge and education and training software, 
especially computer programs and videodisc systems, is directly 
transferable to the private sector or could be transferable to the 
private sector after conversion; 
(3) the transfer of education and training software to the 
public and private sector could properly augment existing Fed-
eral programs for the training of new industrial workers or the 
retraining of workers whose jobs have been disrupted because of 
technological developments, foreign trade, and changes in 
consumer requirements; and 
(4) the transfer of education and training software to the 
public and private sector would be especially beneficial to small 
business concerns which lack the resources to develop such 
software independently. 
(b) PURPOSE.—Therefore, it is the purpose of this chapter to 
facilitate the transfer of education and training software from 
Federal agencies to the public and private sector and to State and 
local governments and agencies thereof, including educational sys-
tems and educational institutions, in order to support the education, 
training, and retraining of industrial workers, especially workers in 
small business concerns. 
20 use 5093. 
SEC. 6103. OFFICE OF TRAINING TECHNOLOGY TRANSFER. 
(a) OFFICE ESTABLISHED.—There is established in the Office of 
Educational Research and Improvement of the Department of Edu-
cation an Office of Training Technology Transfer. The Office shall 
be headed by a Director, who shall be appointed by the Secretary of 
Education. The Director shall be compensated at the rate provided 
for GS-16 of the General Schedule under section 5332 of title 5, 
United States Code. 
(b) PERSONNEL.—To carry out this chapter, the Director may 
appoint personnel in accordance with the civil service laws, and may 
compensate such personnel in accordance with the General Sched-
ule under section 5332 of title 5, United States Code. 
20 use 5094. 
SEC. 6104. FUNCTIONS OF THE OFFICE. 
(a) CLEARINGHOUSE REQUIRED.—(1) The Director shall compile and 
maintain a current and comprehensive clearinghouse of all knowl-
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1501 
edge and education and training software developed or scheduled for 
development by or under the supervision of Federal agencies. The 
clearinghouse shall include, with respect to each item of education-
and training software listed in the clearinghouse— 
(A) a complete description of such software, including the 
purpose, content, intended academic level or competency level, 
date of development, imbedded learning and instructional 
strategies, and mode of presentation of such software; 
(B) a description of each type of computer hardware which is 
compatible with such software and of any other equipment 
required to use such software; 
(C) a specification of any patent, copyright, or proprietary 
interest affecting the cop3nng, conversion, or transfer of such 
software; and 
(D) information with respect to any conversion or transfer of 
such software pursuant to this chapter. 
(2) In compiling the clearinghouse required by this subsection, the 
Director shall— 
(A) consult with and utilize fully the resources of all Federal 
agencies engaged in the collection and dissemination of 
information concerning education and training software; and 
(B) request the participation and cooperation of entities in the 
legislative and judicial branches of Grovemment. 
(b) DISSEMINATION REQUIRED.^1) The Director shall disseminate 
widely and on a regular basis the clearinghouse required by subsec-
tion (a) and any revisions thereof in order to enable all potential 
commercial users and public interest users of education and train-
ing software to receive ample notice that Federal agencies have 
developed such software, or nave scheduled such software for devel-
opment. In canying out the preceding sentence, the Director shall— 
(A) utilize all interagency and intergovernmental communica-
tion mechanisms, including the National Center for Research in 
Vocational Education, the Nationsd Occupational Information 
- 
Committee, State educational agencies. State occupational 
information coordinating committees, State job training coordi-
nating councils, private industry councils. State economic devel-
opment agencies, regional educational laboratories, and the 
Small Business Administration; and 
(B) encourage the participation of independent private sector 
organizations, including organizations representing State and 
local educational agencies, educational institutions, technical 
and professional organizations, and trade associations. 
(2) The Director shall develop and distribute, in conjunction with 
the dissemination of the clearinghouse required under subsection 
(a), detailed instructions and procedures for securing copies, includ-
ing such rights thereto as may be required, of education and 
training software listed in such clearinghouse and guidelines for 
cooperative agreements between commercial users and public in-
terest users under subsection (d). 
(c) CONSULTATION; PUBUC INTEREST USER.—(I) The Director shall Grants. 
advise, consult with, and may provide grants to any prospective 
public interest user of an education and training software listed in 
the clearinghouse required under subsection (a) and shall assist such 
user in securing the transfer of such software from the Federal 
agency which developed such software at a cost to the public in-
terest user based upon the ability of such user to pay for such 
transfer. In providing such assistance, the Director shall encoureige 
102 STAT. 1502 
PUBLIC LAW 100-418—AUG. 23, 1988 
such public interest user to obtain such software by working with 
the Training Technology Transfer Officer of such agency. If an 
agency has not established procedures for the transfer of education 
and training software, the Director shall n^otiate the transfer of 
such software upon application by such user. 
Contracts. 
(2) The Director, to such extent and in such amounts as provided 
in advance by appropriation Acts, may enter into contracts with any 
qualified agency having expertise in the field of education and 
qualified private sector business concerns for the conversion of 
education and training software in order to adapt such software to 
the requirements of a public interest user. 
Contracts. 
(d) CONSULTATION; CoMBfERCiAL UsER.—(1) The Director shall 
advise and consult with any prospective commercial user of an 
education and training software listed in the clearinghouse required 
under subsection (aXl)- The Director may sell or lease such training 
software, including exclusive or nonexclusive rights in copyrights or 
patents pertaining thereto, to a commercial user for a price or fee 
which reflects a reasonable return to the Government. 
(2) The Director may waive purchase prices or lease fees for a 
commercial user of training software, may negotiate reduced pur-
chase prices or lease fees for such commercial user, or may n^otiate 
exclusive sale or lease agreements or other terms favorable to such 
commercial user if such commercial user agrees to enter into a 
cooperative agreement with a public interest user or a group of 
public interest users in accordance with this section. Under the 
preceding sentence, the Director may not waive such prices or fees, 
n^otiate reduced prices or fees, or negotiate exclusive agreements 
or favorable terms for a commercial user unless such cooperative 
agreement— 
(A) provides for the conversion of the education and training 
software by the commercial user in order to meet the specific 
needs of ^e public interest user or group of public interest 
users; 
(B) provides that such conversion will be performed without 
chaise to the public interest user or group of users; and 
(C) is acceptable to the Director. 
(3) In n^otiating terms for the sale or lease of education and 
training software pursuant to subsection (b), the Director shall give 
preferential consideration to cooperative agreements which— 
(A) will result in enhancing the employment potential and 
potential earnings of the maximum number of individuals; 
(B) encourage and promote multiple uses of education and 
training software converted pursuant to this section by users 
with similar education needs; and 
(C) provide beneficial uses of education and training software 
for businesses. 
(4) Any education and training software converted pursuant to 
subsection (b) shall be listed in the clearinghouse required by subsec-
tion (aXD and shall be available for transfer to any other public 
interest user. 
(e) STUDY REQUIRED.—(1) The Director shall study the effective-
ness of transfers and conversions of education and training software 
pursuant to this chapter, and shall analyze national needs for 
methods to convert education and trainii^^ software which are in 
addition to the method provided in subsection (dX2). 
Reports. 
(2) The Director sludl submit to the Congress a report that— 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1503 
(A) describes the study and analysis conducted as required by 
paragraph (1); and 
(B) contains recommendations of the Director concerning 
whether the public interest is served through the program of 
gTEints and contracts to public interest users to support conver-
sion of education and training software. 
(3) The Director shall submit the report required by subparagraph Reports. 
(A) before the expiration of the two-year period beginning on the 
date of enactment of this Act. 
SEC. 6105. ADMINISTRATIVE PROVISIONS. 
20 u s e 5095. 
fa) IN GENERAL.—In canying out this chapter, the Director is 
authorized— 
(1) to promulgate such rules, regulations, procedures, and 
forms as may be necessary to carry out the functions of the 
Office, and delegate authority for the performance of any func-
tion to any officer or employee of the Office under the direction 
and supervision of the Director; 
(2) to utilize, with their consent, the services, equipment, 
personnel, information, and facilities of other Federal agencies 
and of State, local, and private agencies and instrumentalities, 
with or without reimbursement therefor; 
(3) to enter into agreements with other Federal agencies as 
may be appropriate; 
(4) to accept voluntary and uncompensated services, without 
regard to the provisions of section 1342 of title 31, United States 
Code; 
(5) to request such information, data, and reports from any 
Federal agency as the Director may from time to time require 
and as may be produced consistent with other law; and 
(6) to use the facilities of the Office of Educational Research 
and Improvement. 
(b) SPECIFIC DELEGATION OF CLEARINGHOUSE AND DISSEMINATION 
FUNCTIONS.—The Director shall enter into interagency agreements Contracts. 
with the National Technical Information Service of the Department 
of Commerce to perform on a reimbursable basis the functions 
specified in sections 6104(a) and 61040>) of this Act. 
SEC. 6106. COORDINATION WITH FEDERAL AGENCIES. 
20 USC 5096. 
(a) USE OF FEDERAL PROGRAMS.—In canying out this chapter, the 
Director shall utilize, to the fullest possible extent, all existing 
Federal programs to promote the identification, conversion, and 
transfer of knowledge and education and training software in 
accordance with this chapter. 
(b) EDUCATION AND TRAINING SOFTWARE TRANSFER OFFICER.—The 
head of each Federal sigency which develops knowledge for or uses 
education and training software shall designate, from the officers 
and employees of the agency, an education and training software 
transfer officer. The education and training software transfer officer 
of an agency shsdl— 
(1) supply information to the Office of Education Software 
Transfer for inclusion in the clearinghouse; 
(2) receive and process inquiries and requests from prospec-
tive users of knowledge and education and training software 
employed by such agency; 
102 STAT. 1504 
PUBLIC LAW 100-418—AUG. 23, 1988 
(3) promote direct contact between prospective users of knowl-
edge and education and training software and personnel of the 
agency; 
(4) facilitate the prompt transfer for knowledge and education 
and training software to public interest users; and 
(5) refer requests for education and training software from 
commercial users to the Office of Training Software Transfer 
for the negotiation of the purchase or lease of such software. 
(c) COOPERATION OF FEDERAL AGENCIES.— 
(1) IN GENERAL.—^All Federal agencies shall cooperate with 
Reports. 
the Director in the implementation of this chapter. If the head 
of a Federal agenpy finds that such agency is unable to co-
operate with the Director for reasons of national security, or for 
any other reason, such agency head shall report such finding to 
the Secretary. The Secretary shall report to the Congress by 
July 1 of each year all such findings received by the Secretary 
during the preceding 12-month period. 
(2) COOPERATION WITH EXCHANGE CENTER.—The Director shall 
cooperate with the Federal Software Exchange Center of the 
National Technical Information Service to faciUtate the trans-
fer of education and training software between Federal 
agencies. 
(3) AVAILABIUTT OF F
E
D
E
R
A
L SERVICES, EQUIPMENT, PERSONNEL, 
AND FACILITIES.—Upon request of the Director, the head of each 
Federal agency shall promptly make the services, equipment, 
personnel, facUities, and information of the agency (including 
suggestions, estimates, and statistics) available to the Office to 
the greatest extent practicable. 
(d) EQUITY RULE.—In canying out the purposes of this chapter, 
the Director shall consider special equity concerns, including 
psychological, physiological, sociological, and socioeconomic factors, 
which could prevent some persons from benefiting from new techno-
logical developments, and shall, to the extent possible, ensure that 
such persons benefit from software transfer activities under this 
chapter. 
20 use 5097. 
SEC 6107. DEFINITIONS. 
For the purpose of this chapter— 
(1) the term "commercial user" means any individual, cor-
poration, partnership, or other l^al entity which operates for 
profit and which uses or intenc^ to use the education and 
training software of a Federal agency; 
(2) the term "community-based organizations" has the same 
meaning as in section 2704(5) of the Job Training Partnership 
Ad^ 
(3) the term "conversion" means the process whereby edu-
cation and training software is modified and revised to meet the 
needs of a commercial user or a public interest user; 
(4) the term "Director" means the Director of the Office of 
Training Technology Transfer established pursuant to section 
6103; 
(5) the term "Federal agency** has the meaning given to the 
term "agency" in section 551(1) of title 5, United Stetes Code; 
(6) the term "National Occupational Information Coordinat-
ing Committee" means the National Occupational Information 
Coordinating Committee established under section 422(a) of the 
Carl D. Perkins Vocational Education Act; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1505 
(7) the term "Office" means the Office of Training Technology 
Transfer established pursuant to section 6103; 
(8) the term "private industry council" means a private indus-
try council established under section 102 of the Job Training 
Partnership Act; 
(9) the term "public interest user" means— 
(A) any nonprofit entity which— 
(i) provides job training, vocational education or 
other educational services, including public school sys-
tems, vocational schools, private preparatory schools, 
colleges, universities, community colleges, private in-
dustry councils, community-based organizations, and 
State and local governments and agencies thereof; and 
(ii) which uses or intends to use the education and 
training software of a Federal agency; or 
(B) any Federal agency which uses or intends to use the 
education and training software of another Federal agency; 
(10) the term "small business concern" has the same meaning 
as in section 3 of the Small Business Act; 
(11) the term "State job training coordinating council" means 
a State job training coordinating council established under 
section 122 of the Job Training Partnership Act; 
(12) the term "State occupational information coordinating 
committee" means a State occupational information coordinat-
ing committee established imder section 422(b) of the Carl D. 
Perkins Vocational Education Act; 
(13) the term "education and trcdning software" means com-
puter software which is developed by a Federal agency to 
educate and train employees of the agency and which may be 
transferred to or converted for use by a public interest user or a 
commercial user and includes software for computer based 
instructional systems, interactive video disc systems, micro-
computer education devices, audiovisual devices, £md pro-
grammed learning kits, and associated manuals and devices if 
such manusQs and devices are intc^ally related to a software 
program; 
(14) the term "transfer" means the process whereby education 
and training software is made available to a commercial user or 
a public interest user for the training of the employees of such 
user, with or without the conversion of such software. 
CHAPTER 2—INSTRUCTIONAL PROGRAMS IN 
TECHNOLOGY EDUCATION 
SEC. 6111. PURPOSE. 
20 USC 5101. 
It is the purpose of this chapter to assist educational agencies and 
institutions in developing a technologically literate population 
through instructional programs in technology education. 
SEC. 6112. TECHNOLOGY EDUCATION DEMONSTRATION PROGRAM. 
Grants. 
20 USC 5102 
(a) EsTABUSHMENT.—Subject to the availability of funds for pur-
poses of this chapter, the Secretary of Education shall establish a 
program of grants to local educational eigencies. State educational 
agencies, consortia of public and private agencies, organizations and 
institutions^ and institutions of higher enducation to establish not 
more than 10 demonstration programs in technology education for 
102 STAT. 1506 
PUBLIC LAW 100-418—AUG. 23, 1988 
secondary schools, vocational educational centers and community 
colleges. 
(b) USES OF GRANT FUNDS.—(IXA) Funds made available under 
this chapter may be used to develop a model demonstration program 
for technology education which, to the extent practicable, address 
the components described in paragraphs (2) through (12). 
(B) To the extent feasible, the Secretary shall give priority under 
subparagraph (A) to model demonstration programs which address 
the largest number of components described in paragraphs (2) 
through (12). 
(2) Educational course content based on— 
(A) an organized set of concepts, processes, and systems that is 
uniquely technological and relevant to the changing needs of 
the workplace; and 
(B) fundamental knowledge about the development of tech-
nology and its effect on people, the environment, and culture. 
(3) Instructional content drawn from introduction to technology 
education courses in 1 or more of the following areas— 
(A) communication—efficiently using resources to transfer 
information to extend human potential; 
(B) construction—efficiently using resources to build struc-
tures on a site; 
(C) manufacturing—efficiently using resources to extract and 
convert raw or recycled materials into industrial and consumer 
goods; and 
(D) transportation—efficiently using resources to obtain time 
and place utility and to attain and maintain direct physical 
contact and exchange among individuals and societal units 
through the movement of materials, goods, and people. 
(4) Assisting students in developing insight, understanding, and 
application of technological concepts, processes, and systems. 
(5) Educating students in the safe and efficient use of tools, 
materials, machines, processes, and technical concepts. 
(6) Developing student skills, creative abilities, confidence, and 
individual potential in using technology. 
(7) Developing student problem solving and decisionmaking abili-
ties involving technological systems. 
(8) Preparing students for lifelong learning in a technological 
society. 
(9) Activity oriented laboratory instruction which reinforces ab-
stract concepts with concrete experiences. 
(10) An institute for the purpose of developing teacher capability 
in the area of technology education. 
(11) Research and development of curriculum materials for use in 
technology education programs. 
(12) Multidisciplinary teacher workshops for the interfacing of 
mathematics, science, and technology education. 
(13) Optional emplo3rment of a curriculum specialist to provide 
technical assistance for the program. 
(14) Stressing basic remedial skills in coi\junction with training 
and automation literacy, robotics, computer-aided design, and other 
areas of computer-integrated manufacturing technology. 
(15) A combined emphasis on "know-how" and "ability-to-do" in 
carrying out technological work. 
(c) LIMITATION ON FEDERAL ASSISTANCE.—Federal assistance to 
any program or project under this chapter shall not exceed 65 
percent of the cost of such program in any fiscal year. Not less than 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1507 
10 percent of the cost of such program shall be in the form of private 
sector contributions. Non-Federal contributions may be in cash or in 
kind, fairly evaluated, including facilities, overhead, personnel, and 
equipment. 
SEC 6113. APPLICATIONS FOR GRANTS. 
20 USC 5103. 
(a) IN GENERAL.—A local educational agency, a State educational 
agency, a consortium of public and private agencies, oi^anizations, 
and institutions, or an institution of higher education which desires 
to receive a grant under this chapter shall submit an application to 
the Secretary. Applications shall be submitted at such time, in such 
form, and containing such information as the Secretary shall 
prescribe. 
(b) Ck)NTENTS O
P APPLICATION.—An application shall include— 
(1) a description of a demonstration pix^ram designed to 
carry out the purpose described in section 6111; 
(2) an estimate of the cost for the establishment and operation 
of the program; 
(3) a description of policies and procedures for the program 
that will ensure adequate evaluation of the activities intended 
to be carried out under the application; 
(4) assurances that Federal funds made available under this 
chapter will be so used as to supplement and, to the extent 
practicable, increase the amount of State and local funds that 
would be in the absence of such Federal funds be made available 
for the uses specified in this chapter, and in no case supplant 
such State or local funds; 
(5) a provision for making such reports, in such form and 
containing such information, as the Secretary may require; and 
(6) a description of the manner in which programs under this 
chapter will be coordinated, to the eictent practicable, with 
programs under the Job Training Partnership Act, the Carl D. 
Perkins Vocational Education Act, and other Acts related to the 
purposes of this chapter. 
(c) GEOGRAPHIC DISTRIBUTION.—^In making grants under this chap-
ter, the Secretary shall consider the equitable geographic distribu-
tion of such grants. 
SEC 6114. NATIONAL DISSEBONATION OF INFORMATION. 
20 USC 5104. 
The Secretary shall disseminate the results of the prc^rams and 
projects assisted under this chapter in a manner designed to im-
prove the training of teachers, other instructional personnel, coun-
selors, and administrators. 
SEC 6115. AUTHORIZATION OF APPROPRIATIONS. 
20 USC 5105. 
There are authorized to be appropriated $2,000,000 for fiscal year 
1988 and such sums as may be necessary for each of fiscal years 1989 
through 1993 to carry out the provisions of this chapter. 
SEC 6116. DEFINITIONS. 
20 USC 5106. 
As used in this chapter, the term "technology education" means a 
comprehensive educational process designed to develop a population 
that is knowledgeable about technology, its evolution, systems, tech-
niques, utilization in industry and other fields, and social and 
cultural significance. 
102 STAT. 1508 
PUBLIC LAW 100-418—AUG. 23, 1988 
CHAPTER 3—REPLICATION OF TECHNICAL 
EDUCATION PROGRAMS 
20 u s e 5111. 
SEC. 6121. REPLICATION MODELS FOR TECHNICAL EDUCATION PRO-
GRAMS DESIGNED TO IMPROVE THE QUALITY OF EDU-
CATION 
FOR 
AMERICA'S 
TECHNICALLY 
TRAINED 
WORKFORCE. 
(a) IN GENERAL.—The Secretary, through the National Diffusion 
Network established under section 583(c) of the Education Consoli-
dation and Improvement Act of 1981 (20 U.S.C. 3851), in addition to 
its duties under such Act— 
(1) shall gather, organize, and disseminate information on 
innovative programs at institutions of postsecondary education 
and secondary schools designed to— 
(A) enhance the development of technical skills needed to 
improve the competitiveness of American industry; 
(B) encourage the development of higher skills among 
individuals facing or likely to face job dislocation; 
(C) encourage the acquisition of basic literacy skills 
among youth as well as adults; or 
(D) involve the business community in the planning and 
offering of employment opportunities to the trained 
workforce; 
(2) shall gather, organize, and disseminate information on 
consultative and collaborative efforts by elementary education, 
secondary education, postsecondary education, business, labor, 
local, State and Federal governments designed to— 
(A) improve the efficiency, productivity, and competitive-
ness of American business; or 
(B) enhance the international competitiveness of Amer-
ican business (such as international trade education and 
foreign language training for business); 
(3) in canying out the activities described in paragraphs (1) 
and (2), shall produce a catalog of exemplary consultative and 
collaborative efforts which have the highest probability of being 
replicated; and 
(4) may provide technical assistance to any institution or 
entity to facilitate the gathering of information for replication 
models. 
(b) CONFORMING RULE.—Any program of replication shall conform 
to the provisions of subsection (a) if such program— 
(1) is being conducted by the National Diffusion Network on 
the date of the enactment of this chapter; and 
(2) has the same purpose as the programs described in such 
subsection. 
CHAPTER 4-.VOCATIONAL EDUCATION 
PROGRAMS 
SEC. 6131. ADULT TRAINING. RETRAINING, AND EMPLOYMENT DEVEL-
OPMENT. 
(a) IN GENERAL.—Part C of title III of the Carl D. Perkins Voca-
tional Eklucation Act (20 U.S.C. 2371 et seq.) is amended— 
(1) by inserting after the part heading the following: 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1509 
"Subpart 1—Basic Program"; 
(2) by strikii^ out "this part" each place such term appears in 
sections 321 t^*ough 324 and inserting in lieu thereof "this 
subpart"; and 
(3) by adding at the end the following new subpart: 
'Subpart 2—Special Program 
"FINDINGS AND PURPOSE 
State and local 
governments. 
"SBC. 326. (a) FINDINGS.—The Congress finds that— 
20 use 2376. 
"(1) technological change, international competition, and the 
demographics of the Nation's workforce have resulted in in-
creases in the nimibers of experienced adult workers who are 
unemployed, who have been dislocated, or who require training, 
retraining, or upgrading of skills, 
"(2) the individuals who are entering and reentering the labor 
market are less educated, trained, or skilled and are dispro-
portionately employed in low-wage occupations and require 
additional training, and 
"(3) these needs can be met by education and trainii^ pro-
grams, especially vocational programs, that are responsive to 
the needs of individuals and the demands of the labor market. 
"(b) PURPOSE.—^It is the purpose of this part to (1) provide financial 
assistance to States to enable them to expand and improve voca-
tional education programs designed to meet current needs for train-
ing, retraining, and employment development of adults who have 
completed or left high school and are preparing to enter or have 
entered the labor market, including workers who are 55 years of age 
and older, in order to equip adults with the competencies and skills 
required for productive employment, and (2) to ensure that pro-
grams are available which are relevant to the labor market needs 
and accessible to all s^ments of the population. 
"AUTHORIZATION OF GRANTS AND USES OF FUNDS 
"SEC- 327. (a) GRANTS TO STATES.—The Secretary shall make 20 use 2377. 
grants in proportion to the amount received under section 101 to 
States for programs, services, and activities authorized by this part. , 
"01)) STATE ADMINISTRATION.—(1) Grants to States under this part 
shall be made to the board established under section 111 to serve as 
the grant recipient and catalyst to public-private training partner-
ships. 
' (2XA) Such board shall make awards on the basis of application 
from educational institutions (e.g. community collies, vocational 
schools, service providers under the Job Training Partnership Act 
(29 U.S.C. 49 et seq.), four-year collies, universities, and community 
based organizations) which link up with one or more private compa-
nies in order to train people for jobs in high growth fields. 
"(B) The board shall establish criteria for application, application 
content and criteria, and procedures for the awarding oS. grants 
under this section. 
"(3) Business must be actively involved in the planning, designing, 
operating, and monitoring of the education and training programs 
so that they will meet their needs. 
"(4) Training can include entry level training, employee upgrad-
ing, retraining, and customized training. 
102 STAT. 1510 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(5) Grants shall not be awarded for more than 50 percent of the 
costs. The remainder must come from the private sector in either 
cash or related equipment and services which would be at least 
equivalent to the Federal grant portion. 
"(c) ELIGIBLE PROGRAMS.—Prc^rams eligible for funding by the 
State, and designed cooperatively between education institutions 
and one or more businesses, may include— 
"(1) institutional and worksite programs tailored to meet the 
needs of an industry or group of industries for skilled workers, 
technicians or managers, or to assist their existing workforce to 
adjust to changes in technology or work requirements; 
'(2) quick-start, customized training for workers in new and 
expanding industries, or for workers for placement in jobs that 
are difficult to fill because of a shortage of workers with the 
requisite skills; 
"(3) shared programs between educational institutions and 
businesses, where a work experience is provided by the business 
subsequent to the classroom training to reinforce the classroom 
or workshop training; 
"(4) cooperative ^ucation pn^ams with public and private 
sector employers and economic development agencies, including 
seminars in institutional or worksite settings, designed to 
improve management and increase productivity; 
"(5) entrepreneurship training programs which assist individ-
uals in the establishment, management, and operation of small 
business enterprises; 
Women. 
"(6) recruitment, job search assistance, counseling, remedial 
Aged persons. 
services, and information and outreach pn^rams designed to 
p&rsonT^^^ 
encourage and assist males and females to take advantage of 
Disadvantaged 
Vocational education prc^rams and services, with particular 
persons. 
attention to reaching women, older workers, individuals with 
limited English profidenQr, the handicapped, and the disadvan-
taged; and 
(7) related instruction for apprentices in apprenticeship 
training programs. 
"(d) REQUIREMENTS.—^In making grants under this part, the Sec-
retary shsdl require each State, in its State plan (or an amendment 
to such plan), to assure that programs— 
"(1) are designed with the active participation of the State 
council established pursuant to section 112; 
"(2) make maximum effective use of existing institutions, are 
planned to avoid duplication of programs or institutional 
capabilities, and to the fullest extent practicable are designed to 
strengthen institutional capacity to meet the education and 
training needs addressed by this part; 
"(3) assure the active participation by public and private 
sector employers and public and private agencies working with 
programs of employment and training and economic develop-
ment; and 
"(4) where appropriate, involve coordination with programs 
under the Rehabilitation Act of 1973 and the Education of the 
Handicapped Act. 
"CXX>RDINATI0N WITH THE JOB TRAINING PARTNERSHIP ACT 
20 use 2378. 
"SBC. 328. (a) REQUIREMENTS FOR INCLUSION IN STATE PLAN.—Each 
State receiving grants under this part shall include in the State plan 
,^^0"^'"--»r«"''''^«T»(f'!r?5W-i*^"''''* 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1511 
methods and procedures for coordinating vocational education pro-
grams, services, gmd activities funded under this part to provide 
programs of assistance for dislocated workers funded under title III 
of the Job Training Partnership Act. 
"(b) CONSULTATION WITH STATE JOB TRAINING COORDINATING 
COUNCIL.—(1) The State board shall consult with the State job 
training coordinating council (established under section 122 of the 
Job Training Partnership Act) in order that programs assisted 
under this part may be taken into account by such council in 
formulating recommendations to the Governor for the Governor's 
coordination and special services plan required by section 121 of 
such Act. 
"(2) The State board shall also adopt such procedures as it consid-
ers necessary to encoursige coordination between eligible recipients 
receiving funds under this part and the appropriate administrative 
entity established under the Job Training Partnership Act in the 
conduct of their respective programs, in order to achieve the most 
effective use of all Federal funds through programs that com-
plement and supplement each other, and, to the extent feasible, 
provide an ongoing and integrated program of training and services 
for workers in need of such assistance.'. 
(2) The table of contents at the beginning of such Act is 
amended— 
(1) by inserting eifter the item relating to part C the following: 
"Subpart 1—Basic Program"; and 
(2) by inserting after the item relating to section 323 the 
following: 
"Subpart 2—Special Pr<^am 
"Sec. 326. Findings and purpose. 
"Sec. 327. Authorization of grants and uses of funds. 
"Sec. 328. Coordination with the Job Training Partnership Act.". 
(b) AUTHORIZATION OF APPROPRIATIONS.—(1) Subparagraph (A) of 
section 3(bX3) of the Carl D. Perkins Vocational Education Act is 20 use 2302. 
amended to read as follows: 
"(3XAXi) There are authorized to be appropriated $35,000 for the 
fiscal year 1985, such sums EIS may be necessary for each of the fiscal 
years 1986 and 1987, and $25,000,000 for each of the fiscal years 1988 
and 1989 to carry out subpart 1 of part C of title III, relating to the 
b£isic program for adult training, retraining, and employment devel-
opment. 
"(ii) There are authorized to be appropriated $25,000,000 for each 
of the fiscal years 1988 and 1989 to carry out subpart 2 of such part, 
relating to the special program for adult training, retraining, £uid 
employment development.". 
(2) Subparagraph (B) of such section is amended bv striking out 
"subparagraph (A)" and inserting in lieu thereof 
subparagraph 
(AXi)^'. 
SEC. 6132. AUTHORIZATION 
OF ADDITIONAL USES OF VOCATIONAL 
EDUCATION FUNDS. 
Section 251(a) of the Carl D. Perkins Vocationtil Education Act (20 
U.S.C. 2341) is amended— 
(1) by striking out "and" at the end of paragraph (23); 
(2) by striking out the period at the end of paragraph (24) and 
inserting in lieu thereof , and"; and 
(3) by adding at the end the following new paragraphs: 
102 STAT. 1512 
PUBLIC LAW 100-418—AUG. 23, 1988 
'(25) pre-employment skills training; and 
'(26) school-to-work transition programs.". 
20 u s e 2411 
SEC. 6133. EDUCATION FOR EMPLOYMENT DEMONSTRATION PROGRAM. 
note. 
From the sums available to the Secretary for national programs 
under the Carl D. Perkins Vocational Education Act, the Secretary 
shall conduct a demonstration program with secondary school stu-
dents designed to provide participating students with the skills 
needed for employment or further education by forming partner-
ships with business and industry for purpose of incorporating into 
school curriculums— 
(1) practical applications of academic subjects; 
(2) career exploration; 
(3) instruction relating to job seeking skills, career choices, 
and use of information relating to the labor market; and 
(4) a school monitored work experience program, designed to 
equip each high school graduate with a resume as well as a 
diploma. 
20 u s e 2393. 
SEC. 6134. INDUSTRY-EDUCATION PARTNERSHIP AUTHORIZATION. 
(a) PROGRAM AUTHORIZED.—Section 343 of the Carl D. Perkins 
Vocational Education Act is amended by adding at the end thereof 
the following new subsection: 
"(d)(1) Funds made available pursuant to section 3(bX5)(B) of this 
Act may be used, in accordance with this part, to provide vocational 
education to individuals in order to assist their entry into, or 
advancement in, high technology occupations or to meet the techno-
logical needs of other industries or businesses. 
"(2) Special consideration shall be given to individuals described 
in paragraph (1) who have attained 55 years of age.". 
(b) AUTHORIZATION OF APPROPRIATIONS.—Section 3(b)(5) of such 
20 use 2302. 
Act is amended— 
(1) by inserting "(A)" after the paragraph designation; and 
(2) by adding at the end thereof the following new subpara-
graph: 
"(B) There are authorized to be appropriated an additional 
$10,000,000 for each of the fiscal years 1988 and 1989 to carry out 
part E of title III, for workers described in section 343(d). 
20 u s e 2411 
SEC. 6135. DEMONSTRATION PROGRAM FOR TECHNOLOGICAL LITERACY. 
"° • 
(a) ESTABLISHMENT.—The Secretary shall establish demonstration 
programs in vocational training centers and community colleges for 
purposes of providing modular training in basic skills with the 
objective of rendering participants technologically literate. Such 
programs shall— 
(1) stress techniques and methods that offer basic remedial 
skills in conjunction with training in automation literacy, robot-
ics, computer-aided design, and other areas of computer-
integrated manufacturing technology; and 
(2) be designed to foster flexibility and assist workers in 
meeting the challenge of a changing workplace. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated $2,000,000 for fiscal year 1988 for purposes of 
carrying out this section. Amounts appropriated pursuant to this 
subsection shall remain available until expended. 
•~ '?*Sb?H;-
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1513 
CHAPTER 
5—ACCESS 
DEMONSTRATION 
^^'^^ 
^
'
^
^
^
^ 
PROGRAMS 
SEC. 6141. PURPOSE. 
20 USC 5121. 
It is the purpose of this chapter to support training programs for 
secondary school personnel, including guidance counselors, in order 
to increase the opportunities of secondary school students in rural 
sections of the Nation for continued education. 
SEC. 6142. PROGRAM AUTHORIZED. 
20 USC 5122. 
(a) GRANTS TO EUGIBLE ENTITIES.—The Secretary may make 
grants to institutions of higher education, private nonprofit agencies 
and organizations, including regional educational laboratories, 
public agenices. State educational agencies, or combinations thereof 
within particular regions of the United States to support the devel-
opment of training programs for secondary school personnel, includ-
ing guidance counselors. The Secretary may not make a grant under 
the preceding sentence to any nonpublic agency unless such agency 
has extensive experience in providing educational assistance to 
State and local educational agencies. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated $5,000,000 for fiscal year 1988 for purposes of 
carrjdng out this chapter. 
SEC. 6143. APPLICATIONS. 
20 USC 5123. 
(a) SUBMISSION OF APPUCATIONS.—An eligible entity which desires 
to develop and operate a program described in section 6142(a) shall 
submit an application to the Secretary. 
O
b
) REVIEW OF APPUCATIONS.—Each application submitted under 
subsection (a) shall be reviewed by peers, including educators and 
researchers, to determine the quality of the proposed program and 
its relationship to the demonstrated needs of the region to be served. 
(c) SouciTATiON OF ALTERNATIVE PROPOSALS.—If, based upon a 
review under subsection Ot)), the Secretary determines that a pro-
posed program would not best serve the needs of the students of the 
region to be served, the Secretary may solicit proposals from other 
eligible entities located in the region. 
(d) CONTENT OF APPUCATIONS.—Each application for assistance 
under this section shall— 
(1) contain assurances that— 
(A) the eligible entity shall provide technical assistance to 
appropriate educational agencies; and 
(B) information developed as a result of the applicant's 
research and development activities, including new edu-
cational methods, practices, techniques, and products, will 
be appropriately disseminated; 
(C) all rural students in all States within the region will 
have access to and information about the access progrsim; 
(2) contain a description of— 
(A) the rural secondary school population within the 
region served by the eligible entity, including estimates of 
the number of high school graduates who— 
(i) attend institutions of higher education, including 
an estimate of the number who attend out-of-state 
institutions; 
(ii) attend trade schools; 
^ ^ 
102 STAT. 1514 
PUBLIC LAW 100-418—AUG. 23, 1988 
(iii) enter military service; 
(B) services available within each of the States in the 
region that exist to provide secondary school students with 
information and training relating to higher education and 
self-employment; and 
(C) activities provided— 
(i) to train designated school personnel to advise and 
establish community partnership programs; and 
(ii) to provide technical assistance; and 
(3) demonstrate that— 
(A) the eligible entity has engaged in sufficient study and 
analysis to ensure that the services to be offered by the 
proposed program will increase the number of secondary 
school students entering institutions of higher education 
and increase their awareness of and opportunities for finan-
cial assistance; 
(B) In the case of an eligible entity other than a State 
educational agency or local educational agency, State and 
local educational agencies were involved in planning the 
proposed programs and that services available from such 
agencies are incorporated into the proposed program; and 
(C) the program will probably be funded by State or other 
sources after the expiration of funding under this chapter. 
(e) REPORT.— 
(1) PROGRAM EFFECT.—The Office of Educational Research and 
Improvement shall submit a report to the Congress on the effect 
of programs funded under this chapter, including recommenda-
tions of the eligible entities. 
(2) The report required by paragraph (1) shall be submitted 
not later than November 30,1989. 
20 use 5124. 
SEC. 6144. DEFINITIONS. 
As used in this chapter: 
(1) The term "regional educational laboratory" means a 
regional educational laboratory supported by the Secretary 
under section 405(dX4XAXi) of the General Education Provisions 
Act (20 U.S.C. 1221e(dX4XAXi)). 
(2) The term "eligible entity" means any entity or combina-
tion of entities described in section 6142(a). 
Subtitle C—Higher Education 
CHAPTER 1—STUDENT LITERACY CORPS 
SEC. 6201. STUDENT LITERACY CORPS. 
Title I of the Higher Education Act of 1965 is amended by adding 
the following new part at the end thereof: 
Grants 
"PART D—STUDENT LITERACY CORPS 
Loans. 
20 use 1018. 
"SEC. 141. PURPOSE. 
"It is the purpose of this part to provide financial assistance to 
institutions of higher education to promote the development of 
literacy corps programs to be operated by institutions of higher 
education in public community agencies in the communities in 
which such institutions are located. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1515 
"SEC. 142. LITERACY CORPS PROGRAM. 
"From the amount appropriated pursuant to section 146 for any 
fiscal year, the Secretary is authorized, in accordance with the 
provisions of this part, to make grants to institutions of higher 
education for not to exceed 2 years to carry out literacy corps 
programs. 
"SEC. 143. USES OF FUNDS. 
"(a) IN GENERAL.—Funds made available under this part may be 
used for— 
"(1) grants to institutions of higher education for— 
"(A) the costs of participation of institutions of higher 
education in the literacy corps program for which assist-
ance is sought; and 
"(B) stipends for student coordinators engaged in the 
literacy corps program for which assistance is sought; and 
"(2) technical assistance, collection and dissemination of 
information, and evaluation in accordance with section 145. 
"(b) LIMITATIONS.—(1) No grant under this part to an institution of 
higher education may exceed $50,000. 
'(2) No institution of higher education may expend more than 
$25,000 of a grant made under this part in the first year in which 
the institution receives such a grant. 
"SEC. 144. APPLICATIONS. 
"(a) APPUCATION REQUIRED.—Each institution of higher education 
desiring to receive a grant under this part shall submit an applica-
tion to the Secretary, at such time, in such manner, and containing 
or accompanied by such information as the Secretary may reason-
ably require. 
' Qo) CONTENTS OF APPLICATION.—Each such application shall— 
"(1) contain assurances that the institution will use the grant 
in accordance with section 143; 
"(2) contain adequate assurances that— 
"(A) the institution has established 1 or more courses of 
instruction for academic credit which are designed to com-
bine the training of undergraduate students in various 
academic departments such as socisil sciences, economics, 
and education with experience as tutors; 
"(B) such individuals will be required, as a condition of 
receiving credit in such course, to perform not less than 6 
hours of voluntary, uncompensated service each week of 
the academic term in a public community agency as a tutor 
in such agency's educational or literacy program; 
"(C) such tutoring service will be supplementary to the 
existing instructional services, offered in a structured class-
room setting, and furnished under the supervision of qucdi-
fied personnel; and 
"(D) the institution will locate such tutoring services in 
one or more public community agencies which serve 
educationally or economically disadvantaged individuals; 
and 
"(3) demonstrate that the institution of higher education has 
participated, prior to appl3dng for a grant under this subtitle, in 
community service activities, including— 
"(A) the use of a portion of its allotment under part C of 
title IV of the Higher Education Act of 1965 for work study 
20 use 1018a. 
20 use 1018b. 
20 use 1018c. 
102 STAT. 1516 
PUBLIC LAW 100-418—AUG. 23, 1988 
for community service learning under section 443(bX2XA); 
or 
"(B) the conduct of a cooperative education program; and 
"(4) contain such other assurances as the Secretary may 
reasonably require. 
"(c) WAIVER.—llie Secretary may, upon request of an institution 
of higher education which does not meet the requirements of clause 
(3) of subsection (b), grant a waiver of the requirement under such 
clause if the institution of higher education provides assurances 
that— 
"(IXA) the institution of higher education has conducted an-
other significant program which involves community outreach 
and service; or 
"(B) its failure to engage in community service related pro-
grams or activities prior to making application under this part 
wiU not impede the ability of the institution to engage in the 
outreach efforts necessary to cany out the requirements of this 
part; and 
"(2) the institution will use a portion of its allotment under 
part C of title IV of the Higher Ekiucation Act of 1965 for 
community service learning pn^ams pursuant to section 
443(bX2XA) of that Act if the institution receives an allotment 
under such part C. 
An institution of higher education may apply for a waiver as part of 
the application described in subsection (b). 
20 use 1018d. 
"SEC 145. TECHNICAL ASSISTANCE AND COORDINATION CONTRACT. 
"To the extent that funds are available therefor pursuant to 
section 146, the Secretary may, directly or by way of grant, contract, 
or other arrangement— 
"(1) provide technical assistance to grant recipients under this 
part; 
"(2) collect and disseminate information with respect to pro-
grams assisted under this part; and 
Reports. 
"(3) evaluate such programs and issue reports on the results 
of such evaluations. 
20 u s e lOlSe. 
"SEC 146. AUTHORIZATION OF APPROPRIATIONS. 
"There are authorized to be appropriated to carry out the provi-
sions of this part $10,000,000 for fiscal year 1988, and $10,000,000 for 
each succeeding Gacal year thereafter ending prior to October 1, 
1991, except that no funds are authorized to be appropriated for this 
part for more than 2 fiscal years. 
20USC1018f. 
"SEC 147. DEFINITIONS. 
"For the purpose of this part— 
"(1) tJie term 'public community agency' means an established 
community agency with an established program of instruction 
such as elementary and secondary schools. Head Start centers, 
prisons, agencies servii^ youth, and agencies serving the handi-
capped, including disabled veterans; 
"(2) the term 'institution of higher education' has the same 
meaning given that term by section 1201(a) of the Higher 
Education Act of 1965; and 
"(3) the term 'Secretary* means the Secretary of Education." 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1517 
CHAPTER 2—SPECIAL RESEARCH FACILITIES 
SEC. 6211. AGRICULTURE, STRATEGIC METALS, MINERALS, FORESTRY, 
AND OCEANS COLLEGE AND UNIVERSITY RESEARCH FACILI-
TIES AND INSTRUMENTATION MODERNIZATION PROGRAM. 
Title VII of the Higher Education Act of 1965 is amended by 
adding new part J: 
"PART J—AGRICULTURE, STRATEGIC METALS, MINERALS, FORESTRY 
AND OCEANS COLLEGE AND UNIVERSITY RESEARCH FACILITIES AND 
INSTRUMENTATION MODERNIZATION PROGRAM 
"PROGRAM AUTHORITY 
"SEC. 795. (a) PURPOSE.—It is the purpose of this section to help 
20 use ii32j. 
revitalize college and university academic research programs that 
specialize in agricultural, strategic metals smd minerals, energy, 
forestry and wood products, and oceanic research by assisting col-
leges and universities in repair and renovation of their research 
laboratories and other research facilities and upgrading or replacing 
outmoded research equipment and instrumentation currently in use 
at such facilities for agricultural, strategic metals, minerals, energy, 
forestry, and oceans research. 
"(b) FINANCIAL ASSISTANCE AUTHORIZED.—The Secretary shall, 
from the sums available to carry out this section in any fiscal year, 
establish and carry out a new College and University Research 
Facilities and Instrumentation Modernization Program for agri-
culture, strategic metals, minerals, energy, forestry, and oceanic 
research that will provide assistance for the replacement, repair, or 
renovation of such institutions' obsolete laboratories, other research 
facilities, and outmoded equipment and instrumentation. No funds 
made available under this section may be used for the construction 
of new facilities. 
"(c) PROGRAM REQUIREMENTS.—The College and University Re-
search Facilities and Instrumentation Modernization Program for 
agriculture, strat^c metals, minersds, energy, forestry, and oceans 
shall be carried out through projects which involve the replacement, 
repair, or renovation of specinc research facilities and research 
equipment or instrumentation at colleges and universities. Funds Regulations. 
shall be awarded competitively, on the basis of specific proposals 
submitted by colleges and universities, in accordance with regula-
tions prescribed by the Secretary. The Secretary shall consult with 
the Secretaries of Agriculture, Interior, Energy, and Commerce and 
shall obtain their recommendations regarding final proposal fund-
ing should they wish to provide such. In no case should this lan-
guage be construed as granting these Secretaries final authority 
over funding or the right to hold up funding of acceptable projects. 
"(d) MATCHING REQUIREMENTS.—Any participating college or 
university must provide an amount not exceeding 50 percent of the 
costs involved from other non-Federal public or private sources. 
"(e) SELECTION CRITERIA.—The criteria for making an award to 
any college or university under this part, shall include— 
"(1) the quality of the research and training to be carried out 
in the facility or facilities involved; 
"(2) the congruence of the institution's research activities to 
be supported with funds awarded under this part with the 
_ai 
T>»«4. o 
102 STAT. 1518 
PUBLIC LAW 100-418—AUG. 23, 1988 
20 use 1135d-6. 
future research needs of the Nation, especially as they relate to 
improving the Nation's trade and competitiveness position; 
"(3) the contribution which the project will make toward 
meeting national, regional, and State research and related 
training needs, especially as those needs are related to improv-
ing the Nation's trade and competitiveness position; and 
"(4) an analysis of the age and condition of existing research 
facilities and equipment. 
"(f) SET-ASIDE.—At least 20 percent of the amount available under 
this section in any fiscal year shall be available only for awards to 
colleges and universities that received less than $10,000,000 in total 
Federal obligations for research and development (including obliga-
tions for the university research laboratory modernization program) 
in each of the two preceding fiscal years. 
"(g) CONSULTATIONS FOR RULEMAKING.—In prescribing regulations 
and conducting the program under this section, the Secretary shall 
consult with other agencies of the Federal Government concerned 
with research, including the Departments of Energy, Agriculture, 
Interior, £md Commerce. 
"(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated $10,000,000 for fiscal year 1988 and such sums as 
may be necessary for each of the 3 succeeding fiscal years to carry 
out this section.". 
CHAPTER 3—MINORITY SCIENCE AND 
ENGINEERING IMPROVEMENT 
SEC. 6221. MINORITY SCIENCE AND ENGINEERING IMPROVEMENT. 
Section 1047 of title X of the Higher Education Act of 1965 is 
amended by adding at the end thereof the following: 
"(c) ADDITIONAL AUTHORIZATION.—In addition, there are au-
thorized to be appropriated $7,500,000 for fiscal year 1988 and such 
sums as may be necessary for each of the 3 succeeding fiscal years 
for the purpose of funding new activities, consistent with the pur-
poses of sections 1021 and 1031, which are specifically aimed at 
increasing the participation of minority students in scientific and 
engineering research careers.". 
CHAPTER 
4—TECHNOLOGY 
TRANSFER 
CENTERS 
SEC. 6231. TECHNOLOGY TRANSFER CENTERS. 
Title Xn of the Higher Education Act of 1965 is amended by 
adding at the end thereof the following: 
Appropriation 
authorization. 
20 use 1145f. 
TECHNOLOGY TRANSFER CENTERS 
"SEC. 1211. (aXlXA) Except as provided in subparagraph (B), there 
are authorized to be appropriated $15,000,000 for fiscal year 1988 
and such sums as may be necessary for each of the 3 succeeding 
fiscal years to develop, construct, and operate regional technology 
transfer centers. The Secretary shall establish such regional 
centers— 
"(i) to promote the study and development of programs and 
depositories necessary to further the trsmsfer of technology 
relevant to a respective region's economy; 
if ••4g***T^.,T*^' 
ysi«j/'T^,«yf- ^
, 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1519 
Rural areas. 
Urban areas. 
Communications 
and 
telecommunications. 
Libraries. 
"(ii) to assist in developing incubator facilities to encourage 
new economic initiatives; 
"(iii) to provide technical assistance linking university Marketing 
expertise and private sector resources to solve technical, 
marketing, and manufacturing 
problems associated 
with 
technology-transfer and start-up businesses; and 
"(iv) to ensure consideration of the economic development 
needs of rural as well as urban areas within the region. 
"(B) The Secretary shall reserve not less than $3,000,000 of 
amounts appropriated pursuant to subparagraph (A) for the purpose 
of carrying out the Training Technology Transfer Act of 1988. 
"(2) In canying out the requirements of this section, regional 
technology-transfer centers are authorized— 
"(A) to build on or, where needed, develop telecommuni-
cations systems to link the centers and their affiliates with 
industrial users; 
"(B) to build on or develop necessary computer networks and 
data bases; and 
"(C) to utilize or help develop regional and national libraries. 
"(b) Financial assistance to each center shall be awarded competi-
tively. Such financial assistance shall be awarded for the establish-
ment or operation of such centers. 
"(c) Each regional center established shall be operated by an 
appropriately qualified college or university within the region, a 
consortium of such schools within the region, or a university-related 
research park or center, and such regional center shall, where 
deemed necessary, establish one or more affiliate centers at colleges 
and universities based in other States within the region. 
"(d) In establishing such centers, the institutions applying shall 
show in their application— 
"(1) how the center will facilitate the economy of the region; 
"(2) that the center's mission is compatible with the economic 
development plans of States in the region; and 
"(3) that appropriate consultation with the relevant State 
agencies concerned with economic development has taken place, 
"(eXD Such center also may be operated by a consortium com-
posed of an entity or entities described in subsection (c), £md an 
existing campus-based research entity, or other State and local 
agencies, nonprofit agencies, interstate higher education organiza-
tions, or, where appropriate, for-profit agencies. The Secretary, Regulations. 
through r^ulation, shall determine a mechanism for assessing the 
percentage of operating costs paid by other members of a technology 
transfer consortium arrangements. 
"(2) For purpose of paragraph (1), the term 'existing campus-based 
research facilities includes agricultural research facilities, mining 
and minerals research facilities; forestry and wood-products re-
search facilities, solar renewable energy research facilities, high 
technology facilities, and manufacturing 
technology 
research 
facilities. 
"(f) Each such center shall establish a Board to advise the center 
on policy. Such board shall be— 
"(1) representative of the States involved in the region; and 
"(2) consist of representatives for urban areas, rural areas, 
ethnic concerns, business, labor, and education. 
"(gXD Grants for each center shall be awarded for a 5-year period. 
Before the end of such period, the Secretary shall conduct a competi-
tion for the award of grants for the succeeding 5-year period. 
Grants. 
102 STAT. 1520 
PUBLIC LAW 100-418—AUG. 23, 1988 
Contracts. 
Public 
information. 
20 u s e 1021. 
Appropriation 
authorization. 
"(2) For the fourth and fifth year of each such 5-year period, and 
during any renewal of the grant for succeeding 5-year periods, 50 
percent of the cost of the activities for which assistance is awarded 
shall be provided from non-Federal sources. 
"(h) Funding for affiliate centers authorized in subsection (c) shall 
be provided by the regional center and the college or university 
operating the affiliate center, with funding levels to be reached by 
the 2 entities in a scope-of-work agreement negotiated between the 2 
entities. Should the Edfiliate center wish, its operations and funding 
support can be a consortia, as specified in subsection (e). 
'(i)(l) The Secretary, after consultation with the Departments of 
Agriculture, Energy, Commerce, and Interior shall publish, for 
public comment, a proposed list of priorities for the establishment of 
regional technology transfer centers and shall propose the regional 
composition of such centers, keeping in mind that satellite and 
telecommunications technology enables regions to contain non-
contiguous States. 
"(2) The Secretary shall publish the final list of regions and 
priorities along with the public's comments. In establishing such 
regions, the Secretary may designate a State or a portion of a State 
as a region.". 
CHAPTER 5—LIBRARY TECHNOLOGY 
ENHANCEMENT 
SEC. 6241. LIBRARY TECHNOLOGY ENHANCEMENT. 
Section 201(b) of the Higher Education Act of 1965 is amended by 
adding at the end thereof the following: 
"(5) There are authorized to be appropriated to carry out the 
purposes of part D an additional $2,500,000 for fiscal year 1988 and 
such additional sums as may be necessary for each of the 3 succeed-
ing fiscal years. Activities supported by funds appropriated pursu-
ant to this paragraph shall be activities that will enable libraries to 
participate more fully in the initiative funded under the Education 
and Training for American Competitiveness Act of 1987.". 
CHAPTER 6—INTERNATIONAL BUSINESS 
EDUCATION PROGRAM 
20 u s e 1130a, 
1130b. 
Grants. 
20 u s e 1130-1. 
SEC. 6261. CENTERS 
FOR 
INTERNATIONAL 
BUSINESS 
EDUCATION 
AUTHORIZED. 
Title VI of the Higher Education Act of 1965 is further amended— 
(1) by redesignating sections 612 £uid 613 as sections 613 and 
614, respectively; and 
(2) by inserting after section 611 the following new section: 
"CENTERS FOR INTERNATIONAL BUSINESS EDUCATION 
"SEC. 612. (a) The Secretary is authorized to make grants to 
institutions of higher education, or combinations of such institu-
tions, to pay the Federal share of the cost of planning, establishing 
and operating centers for international business education which— 
"(1) will be national resources for the teaching of improved 
business techniques, strategies, and methodologies which 
emphasize the international context in which business is trans-
acted. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1521 
"(2) will provide instruction in critical foreign languages and Cultural 
international fields needed to provide understanding of the Programs. 
cultures and customs of United States trading partners, and 
"(3) will provide research and training in the international 
aspects of trade, commerce, and other fields of study. 
In addition to providing training to students enrolled in the institu-
tion of higher education in which a center is located, such centers 
s h ^ serve as r ^ o n a l resources to businesses proximately located 
by offering prc^ams and providing research designed to meet the 
international training needs of such businesses. 
"(b) Each grant made under this section may be used to pay the 
Federal share of the cost of planning, establishing or operating a 
center, including the cost of— 
"(1) faculty and staff travel in foreign areas, regions, or 
countries, 
"(2) teaching and research materials, 
"(3) curriculum planning and development, 
"(4) bringing visiting scholars and faculty to the center to 
teach or to conduct research, and 
"(5) training and improvement of the staff, for the purpose of, 
and subject to such conditions as the Secretary finds necessary 
for, carrying out the objectives of this section. 
"(cXD P n ^ a m s and activities to be conducted by centers assisted 
under this section shall include— 
"(A) interdisciplinary programs which incorporate foreign 
language and international studies training into business, 
finance, management, communications systems, and other 
professional curricula; 
"(B) interdisciplinary programs which provide business, 
finance, management, communications systems, and other 
professional training for foreign language and international 
studies faculty and advanced degree candidates; 
"(C) evening or summer programs, including, but not limited 
to, intensive language programs, available to members of the 
business community and other professionals which are designed 
to develop or enhance their international skills, awareness, and 
expertise; 
'(D) collaborative programs, activities, or research involving 
other institutions of higher education, local educational agen-
cies, professional associations, businesses, firms, or combina-
tions thereof, to promote the development of international 
skills, awareness, and expertise among current and prospective 
members of the business community and other professionals; 
"(E) research designed to strengthen and improve the inter-
national aspects of business and professional education and to 
promote int^rated curricula; and 
"CF) research designed to promote the international competi-
tiveness of American businesses and firms, including those not 
currently active in international trade. 
"(2) Pr(^rams and activities to be conducted by centers assisted 
under this section may include— 
"(A) the establishment of overseas internship prc^ams for 
students and faculty designed to provide training and experi-
ence in international business activities, except that no Federal 
funds provided under this section may be used to pay wages or 
stipends to any participant who is engaged in compensated 
employment as part of an internship program; and 
102 STAT. 1522 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(B) other eligible activities prescribed by the Secretary. 
"(d)(1) In order to be eligible for assistance under this section, an 
institution of higher education, or combination of such institutions, 
shall establish a center advisory council which will conduct exten-
sive planning prior to the establishment of a center concerning the 
scope of the center's activities and the design of its programs. 
"(2) The Center Advisory Council shall include— 
"(A) one representative of an administrative department or 
office of the institution of higher education; 
"(B) one faculty representative of the business or manage-
ment school or department of such institution; 
"(C) one faculty representative of the international studies or 
foreign language school or department of such institution; 
"(D) one faculty representative of another professional school 
or department of such institution, as appropriate; 
"(E) one or more representative of local or regional businesses 
or firms; 
"(F) one representative appointed by the Governor of the 
State in which the institution of higher education is located 
whose normal responsibilities include official oversight or 
involvement in State-sponsored trade-related activities or pro-
grams; and 
"(G) such other individuals as the institution of higher edu-
cation deems appropriate. 
"(3) In addition to the initial planning activities required under 
subsection (d)(1), the center advisory council shall meet not less than 
once each year after the establishment of the center to assess and 
advise on the programs and activities conducted by the center. 
"(eXD The Secretary shall make grants under this section for a 
minimum of 3 years unless the Secretary determines that the 
provision of grants of shorter duration is necessary to carry out the 
objectives of this section. 
"(2) The Federal share of the cost of planning, establishing and 
operating centers under this section shall be— 
"(A) not more than 90 per centum for the first year in which 
Federal funds are furnished, 
"(B) not more than 70 per centum for the second such year 
and 
"(C) not more than 50 per centum for the third such year and 
for each such year there^ter. 
"(3) The non-Federal share of the cost of planning, establishing, 
and operating centers under this section may be provided either in 
cash or in-kind sissistance. 
"(fXD Grants under this section shall be made on such conditions 
as the Secretary determines to be necessary to carry out the objec-
tives of this section. Such conditions shall include— 
"(A) evidence that the institution of higher education, or 
combination of such institutions, will conduct extensive plan-
ning prior to the establishment of a center concerning the scope 
of the center's activities and the design of its programs in 
accordance with subsection (dXD; 
"(B) assurance of ongoing collaboration in the establishment 
and operation of the center by faculty of the business, manage-
ment, foreign language, international studies and other profes-
sional schools or departments, as appropriate; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1523 
"(C) assurance that the education and training prc^ams of 
the center will be open to students concentrating in each of 
these respective areas, as appropriate; and 
"(D) assurance that the institution of higher education, or 
combination of such institutions, will use the assistance pro-
vided under this section to supplement and not to supplant 
activities conducted by institutions of higher education de-
scribed in subsection (cXl).". 
SEC. 6262. AUTHORIZATION OF APPROPRIATIONS. 
Section 614 of the Act (as redesignated by section 6261 of this Act) 
is amended to read as follows: 
"AUTHORIZATION OF APPROPRIATIONS 
"SEC. 614. (a) There are authorized to be appropriated $5,000,000 20 USC il30b. 
for the Hscal year 1988 and for each of the 3 succeeding fiscal years 
to carry out the provisions of section 612. 
"(b) There are authorized to be appropriated $5,000,000 for fiscal 
year 1987, and such sums as may be necessary for the 4 succeeding 
fiscal years, to carry out the provisions of section 613.". 
SEC. 6263. CONFORMING AMENDMENT. 
Section 613 of the Act (as redesignated by section 6261 of this Act) 
is amended by striking out "part" each time it appears and inserting 
in lieu thereof "section". 
CHAPTER 7—ADDITIONAL HIGHER EDUCATION 
PROVISIONS 
SEC. 6271. RONALD E. MCNAIR POST-BACCALAUREATE ACHIEVEMENT 
PROGRAM. 
Section 417D(dX6) of the Act is amended by striking out "in no 20 use 
case" and all that follows through the period and inserting in lieu I070d-ib. 
thereof the following: "if— 
"(A) the funds so allocated equal or exceed $168,800,000 but 
are less than $215,000,000 funds allocated to projects authorized 
under this subsection may not exceed— 
"(i) $1,000,000 in the fiscal year 1988, 
"(ii) $2,000,000 in the fiscal year 1989, 
"(iii) $3,000,000 in the fiscal year 1990, and 
"(iv) $4,000,000 in the fiscal year 1991, and 
"(B) the funds so allocated equal or exceed $215,000,000 funds 
allocated to projects authorized under this subsection may not 
exceed $5,000,000.". 
SEC. 6272. UNITED STATES INSTITUTE OF PEACE. 
Section 25 of the Higher Education Technical Amendments Act of 
1987 is amended by striking out "Section 1703" and inserting in lieu 22 use 4(504. 
thereof "Section 1705(bX3)". 
102 STAT. 1524 
PUBLIC LAW 100-418—AUG. 23, 1988 
Economic 
Dislocation and 
Worker 
Adjustment 
Assistance Act. 
29 use 1501 
note. 
Subtitle D—Employment and Training for 
Dislocated Workers 
SEC 6301. SHORT TITLE. 
This title may be cited as the "Economic Dislocation and Worker 
Adjustment Assistance Act". 
SEC 6302. AMENDMENT TO TITLE III OF THE JOB TRAINING PARTNER-
SHIP ACT. 
(a) IN GENERAL.—Title HI of the Job Training Partnership Act (29 
U.S.C. 1651 et seq.) is amended to read as follows: 
"TITLE III—EMPLOYMENT AND TRAINING 
ASSISTANCE FOR DISLOCATED WORKERS 
29 use 1651. 
Reports. 
DEFINITIONS 
"SEC. 301. (a) DISLOCATED WORKERS.—(1) For purposes of this title, 
the term 'eligible dislocated workers' means individuals who— 
"(A) have been terminated or laid off or who have received a 
notice of termination or layoff from employment, are eligible for 
or have exhausted their entitlement to unemplo3rment com-
pensation, and are unlikely to return to their previous industry 
or occupation; 
"(B) have been terminated or have received a notice of termi-
nation of employment, as a result of any permanent closure of 
or any substantial layoff at a plant, facility, or enterprise; 
"(O are long-term unemployed and have limited opportuni-
ties for employment or reemployment in the same or a similar 
occupation in the area in which such individuals reside, includ-
ing older individuals who may have substantial barriers to 
employment by reason of age; or 
' (D) were self-employed (including farmers and ranchers) and 
are unemployed as a result of general economic conditions in 
the community in which they reside or because of natural 
disasters, subject to regulations prescribed by the Secretary. 
"(2) For purposes of this title, the term 'additional dislocated 
worker' means a displaced homemeiker as that term is defined in 
section 4(29) of this Act. 
"(3) The Secretary shall establish categories of self-employed 
individuals and of economic conditions and natural disasters to 
which paragraph (1)(D) applies. 
"(b) ADDITIONAL DEFINITIONS.—For the purposes of this title— 
"(1) The term 'labor-management committees* means commit-
tees voluntarily established to respond to actual or prospective 
worker dislocation, which ordinanly include (but are not lim-
ited to) the following— 
"(A) shared and equal participation by workers and 
management; 
"(B) shared financial participation between the company 
and the State, using funds provided under this title, in 
paving for the operating expenses of the committee; 
'(C) a chairperson, to oversee and guide the activities of 
the committee, (i) who shall be jointly selected by the labor 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1525 
and m£uiagement members of the committee, (ii) who is not 
employed by or under contract with labor or management 
at the site, and (iii) who shall provide advice and leadership 
to the committee and prepare a report on its activities; 
"(D) the ability to respond flexibly to the needs of affected 
workers by devising and implementing a strategy for assess-
ing the employment and training needs of each dislocated 
worker and for obtaining the services and assistance nec-
essary to meet those needs; 
"(E) a formal agreement, terminable at will by the work-
ers or the company management, and terminable for cause 
by the Governor; and 
"(F) local job identification activities by the chairman and 
members of the committee on behalf of the affected work-
ers. 
"(2) The term 'local elected official* means the chief elected 
executive officer of a unit of general local government in a 
substate area. 
"(3) The term 'service provider' means a public agency, pri-
vate nonprofit organization, or private-for-profit entity that 
delivers educationsd, training, or employment services. 
"(4) The term 'substate area* means that geographic area in a 
State established pursuant to section 312(a). 
"(5) The term 'substate grantee' means that agency or 
organization selected to administer programs pursuant to sec-
tion 312(b). 
"(6) The term 'State' means any of the several States, the 
District of Ck)lumbia, and the Commonwealth of Puerto Rico. 
"ALLOTMENT 
"SEC. 302. (a) ALLOTMENT OF FUNDS.—From the funds appro- 29 use 1652. 
priated pursuant to section 3(c) for any fiscal year, the Secretary 
shall— 
"(1) allot 80 percent of such funds in accordance with the 
provisions of subsection (b); and 
"(2) reserve 20 percent for use under part B of this title, 
subject to the reservation required by subsection (e) of this 
section. 
"(b) ALLOTMENT AMONG STATES.—(1) Subject to the provisions of 
paragraph (2), the Secretary shall allot the amount available in each 
fiscal year under subsection (aXD on the basis of the following 
factors: 
"(A) One-third of such amount shall be allotted among the 
States on the basis of the relative number of unemployed 
individuals who reside in each State as compared to the total 
number of unemployed individuals in all the States. 
"(B) One-third of such amount shall be Edlotted among the 
States on the basis of the relative excess number of unemployed 
individuals who reside in each State as compared to the total 
excess number of unemployed individuals in all the States. For 
purposes of this paragraph, the term 'excess number' means the 
number which represents unemployed individuEils in excess of 
4.5 percent of the civilian labor force in the State. 
"(C) One-third of such amount shall be allotted among the 
States on the basis of the relative number of individuals who 
have been unemployed for 15 weeks or more and who reside in 
102 STAT. 1526 
PUBLIC LAW 100-418—AUG. 23, 1988 
each State as compared to the total number of such individuals 
in all the States. 
"(2) As soon as satisfactory data are available under section 462(e) 
of this Act, the Secretary shall allot amounts appropriated to carry 
out part B and this part for any fiscal year to each State so that— 
"(A) 25 percent of such amount shall be allotted on the basis 
of each of the factors described in subparagraphs (A), (B), and 
(C) of paragraph (1), respectively, for a total of 75 percent of the 
amount allotted; and 
"(B) 25 percent of such amount shall be allotted among the 
States on the basis of the relative number of dislocated workers 
in such State in the most recent period for which satisfactory 
data are available under section 462(e) and, when available, 
under section 462(f) of this Act. 
"(c) 
RESERVATIONS FOR STATE ACTIVITIES AND FOR SUBSTATE 
GRANTEES IN NEED.—(1) The Governor may reserve not more than 
40 percent of the amount allotted to the State under section 302(aXl) 
for— 
"(A) State administration, technical assistance, and coordina-
tion of the programs authorized under this title; 
"(B) statewide, regional, or industrywide projects; 
"(C) rapid response activities as described in section 314(b); 
"(D) establishment of coordination between the unemploy-
ment compensation system and the worker adjustment program 
sjrstem; and 
"(E) discretionary allocation for basic readjustment and 
retraining services to provide additional assistance to areas that 
experience substantisd increases in the number of dislocated 
workers, to be expended in accordance with the substate plan or 
modification thereof. 
"(2) In addition, the Governor may reserve not more than 10 
percent of the amount allotted to the State under section 302(aXl) 
for allocation among substate grantees. The amount so reserved 
shall be allocated on the basis of need and distributed to such 
grantees not later than 9 months after the beginning of the pix^am 
year for which the allotment was made. 
"(d) WITHIN STATE DISTRIBUTION.—^The Governor shall allocate 
the remainder of the amount allotted to the State under this part to 
substate areas for services authorized in this part, based on an 
allocation formula prescribed by the Governor. Such formula may 
be amended by the Grovemor not more than once for each prc^am 
year. Such formula shall utilize the most appropriate information 
available to the Governor to distribute amounts to address the 
State's worker readjustment assistance needs. Such information 
shaU include (but is not limited to)— 
"(1) insured unemployment data; 
"(2) unemplojrment concentrations; 
Plant closings. 
"(3) plant closing and mass layoff data; 
"(4) declining industries data; 
"(5) farmer-rancher economic hardship data; and 
"(6) long-term unemployment data. 
"(e) RESERVATION FOR THE TERRITORIES.—Not more than 0.3 per-
cent of title amounts appropriated pursuant to section 3(c) and 
available under subsection (aX2) of this section for any fiscal year 
shall be allocated among the Commonwealth of the Northern Marir 
ana Islands and the other territories and possessions of the United 
States. 
^'^fs^mf^s 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1527 
"RECAPTURE AND REALLOTMENT OF UNEXPENDED FUNDS 
"SEC. 303. (a) GENERAL REALLOTMENT AUTHORITY.—For program 
State and local 
years beginning July 1, 1989, and thereafter, the Secretary shall, in governments. 
accordance with the requirements of this section, reallot to eligible 
^^ ^^^ ^^^^ 
States the funds allotted to States from funds appropriated for such 
•program year that are available for reallotment. 
"
O
t
>
) AMOUNT AVAILABLE FOR REALLOTMENT.—The amount avail-
able for reallotment is equal to— 
"(1) the amount by which the unexpended balance of the 
State allotment at the end of the program year prior to the 
program year for which the determination under this section is 
made exceeds 20 percent of such allotment for that prior pro-
gram year; plus 
"(2) the unexpended balance of the State allotment from any 
program year prior to the program year in which there is such 
excess. 
"(c) METHOD OF REALLOTMENT.—(1) The Secretary shall determine 
the amount that would be allotted to each eligible State by using the 
factors described in section 3020t)) to allocate among eligible States 
the amount available pursuant to subsection (b) of this section. 
"(2) The Secretary shall allot to each eligible high unemployment 
State the amount determined for that State under the procedure in 
paragraph (1) of this subsection. 
"(3) The Secretary shall, by using the factors described in section 
3020^), allot to eligible States the amount available that remains 
after the allotment required by paragraph (2) of this subsection. 
"(d) STATE PROCEDURES WITH RESPECT TO REALLOTMENT.—The 
Governor of each State shall prescribe uniform procedures for the 
expenditure of funds by substate grantees in order to avoid the 
requirement that funds be made available for reallotment under 
subsection (b). The Governor shall further prescribe equitable proce-
dures for making funds available from the State and substate 
grantees in the event that a State is required to make funds 
available for reallotment under such subsection. 
"(e) DEFINITIONS.—(1) For the purpose of this section, an eligible 
State means a State which has expended at least 80 percent of its 
allotment for the program year prior to the program year for which 
the determination under this section is made. 
"(2) For the purpose of this section, an eligible high unemploy-
ment State means a State— 
"(A) which meets the requirement in subsection (cXD, and 
"(B) which is among the States which has an unemployment 
rate greater than the national average unemployment for the 
most recent 12 months for which satisfactory data are available. 
"(3) For purposes of this section, funds awarded from discretionary 
funds of the Secretary shall not be included in calculating any of the 
reallotments described in this section. 
"PART A—STATE DELIVERY OF SERVICES 
"STATE PLAN 
"SEC. 
311. (a) STATE PLAN REQUIRED.—In order to receive an 
29 use 1661. 
allotment of funds under section 302(b), the Governor of a State 
shall submit to the Secretary, on a biennial basis, a State plan 
describing in detail the programs and activities that will be assisted 
102 STAT. 1528 
PUBLIC LAW 100-418—AUG. 23, 1988 
with funds provided under this title. The State plan shall be submit-
ted on or before the first day of May immediately preceding the 
program year for which funds are first to be made available under 
this title. Such plan shall include incentives to provide training of 
greater duration for those who require it, consistent with section 
106(g). 
"(b) CONTENTS OF PLAN.—Each State plan shall contain provisions 
demonstrating to the satisfaction of the Secretary that the State will 
comply with the requirements of this title and that— 
"(1) services under this title— 
"(A) wiQ, except as provided in paragraph (4), only be 
provided to eligible dislocated workers; 
"(B) will not be denied to an eligible dislocated worker 
displaced by a permanent closure or substantial layoff 
within the State, r^ardless of the State of residence of such 
worker; and 
"(C) may be provided to other eligible dislocated workers 
r^ardless of the State of residence of such worker; 
"(2) the State will designate or create an identifiable State 
dislocated worker unit or office with the capability to respond 
rapidly, on site, to permanent closures and substantial layoffs 
throughout the State in order to assess the need for, and 
initially to provide for, appropriate basic readjustment services; 
"(3) the State unit will— 
"(A) make appropriate retraining and basic readjustment 
services available to eligible dislocated workers through the 
use of rapid response teams, substate grantees, and other 
appropriate organizations; 
(B) work with employers and labor organizations in 
promoting labor-management cooperation to achieve the 
goals of this title; 
"(C) operate a monitoring, reporting, and management 
system which provides an adequate information base for 
effective prc^am management, review, and evaluation; 
and 
"(D) provide technical assistance and advice to substate 
grantees; 
"(4) the State will provide to additional dislocated workers (gis 
defined in section 301(aX2)) the services available under this 
title to eligible dislocated workers only if the (Jovemor of such 
State determines that such services may be provided to addi-
tional dislocated workers without adversely affecting the deliv-
ery of such services to eligible dislocated workers; 
"(5) the State unit will exchange information and coordinate 
programs with— 
"(A) the appropriate economic development agency, for 
the purpose of developing strategies to avert plant closings 
or mass layoffs and to accelerate the reemployment of 
affected individuals; 
"(B) State education, training, and social services pro-
grams; and 
"(CD all other prc^rams available to assist dislocated 
workers (including the Job Service and the unemplo5rment 
insurance system); 
"(6) the State unit will disseminate throughout the State 
information on the availability of services and activities under 
this title; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1529 
"(7) any program conducted with funds made available under 
this title which will provide services to a substantial number of 
members of a labor organization will be established only after 
full consultation with such labor organization; 
"(8) the State will not prescribe any standard for the oper-
ation of programs under this part that is inconsistent with 
section 106(g); 
"(9) the State job training coordinating council has reviewed 
and commented in writing on the plan; and 
"(10) the delivery of services with funds made available under 
this title will be integrated or coordinated with services or 
payments made available under chapter 2 of title II of the Trade 
Act of 1974 and provided by any State or local agencies des-
ignated under section 239 of the Trade Act of 1974. 
"(c) REVIEW AND APPROVAL OP STATE PLANS.—The Secretary shall 
review any plan submitted under subsection (a), and any comments 
thereon submitted by the State job training coordinating council 
pursuant to subsection (bX9), and shall notify a State as to any 
deficiencies in such plan within 30 days after submission. Unless a 
State has been so notified, the Secretary shall approve the plan 
within 45 days after submission. The Secretary shall not finally 
disapprove the plan of any State except after notice and opportunity 
for a hearing. 
"(d) MODIFICATIONS—Any plan submitted under subsection (a) 
may be modified to describe changes in or additions to the programs 
and activities set forth in the plan, except that no such modification 
shall be effective unless reviewed and approved in accordance with 
subsection (c). 
"(e) C!oMPLAiNT, INVESTIGATION, PENALTY.—(1) Whenever the Sec-
retary receives a compleiint or a report from an aggrieved party or a 
public official that a State is not complying with the provisions of 
the State plan required by this section, the Secretary shall inves-
tigate such report or complaint. 
"(2XA) Whenever the Secretary determines that there has been 
such a failure to comply and that other remedies under this Act are 
not available or are not adequate to achieve compliance, the Sec-
retary may withhold an amount not to exceed 10 percent of the 
allotment of the State for the fiscal year in which the determination 
is made for each such violation. 
"(B) No determination may be made under this paragraph until 
the State affected is afforded adequate notice and opportunity for a 
hearing. 
"(0 SPECIAL RULE.—The provisions of section 102(h) and 105(d), 
relating to cases in which a service delivery area is a State, shall 
apply to this title. 
"SUBSTATE GRANTEES 
"SEC. 312. (a) DESIGNATION OF SUBSTATE AREAS.—(1) The Governor 
29 use I66ia. 
of each State shall, after receiving any recommendations from the 
State job training coordinating council, designate substate areas for 
the State. 
"(2) Each service delivery area within a State shall be included 
within a substate area and no service delivery area shall be divided 
among two or more substate areas. 
"(3) In making designations of substete areeis, the Governor shall 
consider— 
"(A) the availability of services throughout the State; 
102 STAT. 1530 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(B) the capability to coordinate the delivery of services with 
other human services and economic development programs; and 
"(C) the geographic boundaries of labor market areas within 
the State. 
"(4) Subject to paragraphs (2) and (3), the Governor— 
"(A) shall designate as a substate area any single service 
delivery area that has a population of 200,000 or more; 
"(B) shall designate as a substate area any two or more 
contiguous service delivery areas— 
"(i) that in the aggregate have a population of 200,000 or 
more; and 
"(ii) that request such designation; and 
Rural areas. 
"(C) shall designate as a substate area any concentrated 
employment program grantee for a rural area described in 
section 101(a)(4)(A)(iii) of this Act. 
"(5) The Governor may deny a request for designation under 
paragraph (4)(B) if the Governor determines that such designation 
would not be consistent with the effective delivery of services to 
eligible dislocated workers in various labor market areas (including 
urban and rural areas) within the State, or would not otherwise be 
appropriate to carry out the purposes of this title. 
'(6) The designations made under this section may not be revised 
more than once each two years, in accordance with the require-
ments of this section. 
"(b) DESIGNATION OF SUBSTATE GRANTEES.—A substate grantee 
Contracts. 
shall be designated, on a biennial basis, for each substate area. Such 
substate grantee shall be designated in accordance with an agree-
ment among the Governor, the local elected official or officials of 
such area, and the private industry council or councils of such area. 
Whenever a substate area is represented by more than one such 
official or council, the respective officials and councils shall each 
designate representatives, in accordance with procedures estab-
lished by the Governor (after consultation with the State job train-
ing coordinating council), to negotiate such agreement. In the event 
agreement cannot be reached on the selection of a substate grantee, 
the Governor shall select the substate grantee. 
"(c) EUGIBIUTY.—Entities eligible for designation as substate 
grantees include— 
"(1) private industry councils in the substate area; 
"(2) service delivery area grant recipients or administrative 
entities; 
"(3) private nonprofit organizations; 
"(4) units of general local government in the substate area, or 
agencies thereof; 
"(5) local offices of State agencies; and 
"(6) other public sigencies, such as community colleges and 
area vocational schools. 
"(d) FUNCTIONS OF SUBSTATE GRANTEES.—The substate grantee 
shall be responsible for providing, within such substate area, serv-
ices described in section 314 (c), (d), and (e) pursuant to an agree-
ment with the Governor and in accordance with the State plan 
Contracts. 
Under section 311 and the substate plan under section 313. The 
substate grantee may provide such services directly or through 
contract, grant, or agreement with service providers. 
"(e) APPUCABIUTY OF GENERAL ADMINISTRATIVE PROVISIONS TO 
SUBSTATE GRANTEES.—The requirements of parts C and D of title I of 
this Act that apply to an administrative entity or a recipient of 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1531 
financial assistance under this Act shall also apply to substate 
grantees under this title. 
"SUBSTATE PLAN 
"SBC. 313. (a) GENERAL RULE.—No amounts appropriated for any 
29 use I66ib. 
fiscal year may be provided to a substate grantee unless the 
Grovemor (after considering the recommendations of the State job 
training coordinating council) has approved a substate plan, or 
modification thereof, submitted by the substate grantee describing 
the manner in which activities will be conducted within the substate 
area. Prior to the submission to the Governor, the plan shall be 
submitted for review and comment to the otiier parties to the 
agreement described in section 312(b). 
"(b) CONTENTS OF SUBSTATE I*LAN.—The substate plan shall con-
tain a statement of— 
"(1) the means for delivering services described in section 314 
to eligible dislocated workers; 
"(2) the means to be used to identify, select, and verify the 
eligibility of program participants; 
"(3) the means for implementing the requirements of section 
314(f); 
"(4) the means for involving labor organizations in the devel-
opment and implementation of services; 
"(5) the performance goals to be achieved consistent with the 
performance goals contained in the State plan pursuant to 
section 311(bX8); 
"(6) procedures, consistent with section 107, for selecting serv-
ice providers which take into account past performance in job 
training or related activities, fiscal accountability, and ability to 
meet performance standards; 
"(7) a description of the methods by which the substate 
grantee will respond expeditiously to worker dislocation where 
the rapid response assistance required by section 314(b) is 
inappropriate, including worker dislocation in sparsely popu-
lated areas, which methods may include (but are not limited 
to)— 
(A) development and delivery of widespread outreach 
mechanisms; 
(B) provision of financial evaluation and counseling 
(where appropriate) to assist in determining eligibility for 
services and the type of services needed; 
(C) initial assessment and referral for further basic 
adjustment and training services; and 
(D) establishment of regional centers for the purpose of 
providing such outreach, assessment, and early readjust-
ment assistance; 
"(8) a description of the methods by which the other parties to 
the agreement described in section 312(b) may be involved in 
activities of the substate grantee; 
"(9) a description of training services to be provided, 
including— 
"(A) procedures to assess participants' current education 
skUl levels and occupational abilities; 
"(B) procedures to assess participants' needs, including 
educational, training, employment, and social services; 
102 STAT. 1532 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(C) methods for allocating resources to provide the serv-
ices recommended by rapid response teams for eligible 
dislocated workers within the substate area; and 
"(D) a description of services and activities to be provided 
in the substate area; 
"(10) the means whereby coordination with other appropriate 
prc^rams, services, and systems will be effected, particularly 
where such coordination is intended to provide access to the 
services of such other systems for prc^am participants at no 
cost to the worker readjustment program; and 
"(11) a detailed budget, as required by the State. 
"(c) RLAN APPROVAL.—The (jovemor shall approve or disapprove 
the plan of a substate grantee in the manner required by section 
105(b) (1), (2), and (3). If a substate grantee fails to submit a plan, or 
submits a plan that is not approved by the Governor in accordance 
with such section, the Governor may cQrect the expenditure of funds 
allocated to the substate area until such time as a plan is submitted 
and approved or a new substate grantee is designated under section 
312. 
"(d) BY-PASS AUTHORITY,—^If a substate grantee fails to exi)end 
funds allocated to it in accordance with its plan, the Grovernor may, 
subject to appropriate notice and opportunity for comment in the 
manner required by section 105(b) (1), (2), and (3), direct the expendi-
ture of funds in accordance with the sutetate plan until— 
"(1) the substate grantee corrects the fsulure, 
"(2) the substate grantee submits an acceptable modification 
to its plan pursuant to subsection (a), or 
"(3) a new substate grantee is designated under section 312. 
29 use 1661c. 
Public 
information. 
USE OF FUNDS; SERVICES TO BE PROVIDED 
"SEC. 314. (a) IN GENERAL.—Funds allotted under section 302 may 
be used— 
"(1) to provide rapid response assistance in accordance with 
subsection (b); 
"(2) to deUver, coordinate, and integrate basic readjustment 
services and support services in accordance with subsection (c); 
"(3) to provide retraining services in accordance with subsec-
tion (d); 
"(4) to provide needs-related payments in accordance with 
subsection (e); and 
"(5) to provide for coordination with the unemployment com-
pensation system in accordance with subsection (X). 
"(b) RAPID RESPONSE ASSISTANCE.—(1) The dislocated worker unit 
required by section 311(bX2) shall include specialists who may use 
funds available imder this title— 
"(A) to establish on-site contact with employer and employee 
representatives within a short period of time (preferably 48 
hours or less) after becoming aware of a current or projected 
permanent closure or substantial layoff in order to— 
"(i) provide information on and facilitate access to 
available pubUc programs and services; and 
"(ii) provide emergency assistance adapted to the particu-
lar closure or layoff; 
"(B) to promote the formation of labor-management commit-
tees, by providing— 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1533 
"(i) immediate assistance in the establishment of the 
labor-management conmiittee, including providing imme-
diate financial assistance to cover the start-up costs of the 
committee; 
"(ii) a list of individuals from which the chairperson of 
the committee may be selected; 
"(iii) technical advice as well as information on sources of 
assistance, and liaison with other public and private serv-
ices and pr(^ams; and 
"(iv) assistance in the selection of worker representatives 
in the event no union is present; 
"(C) to collect information related to— 
"(i) economic dislocation (including potential closings or 
layoffs); and 
"(ii) all available resources within the State for displaced 
workers, 
which information shall be made available on a regular basis to 
the (jrovemor and the State job training coordinating council to 
assist in providing an adequate information base for effective 
pr(^ram mans^ement, review, and evaluation; 
"(D) to provide or obtain appropriate financial and technical 
advice and liaison with economic development agencies and 
other organizations to assist in efforts to avert worker disloca-
tions; 
"(E) to disseminate information throughout the State on the 
availabiUty of services and activities carried out by the dis-
located worker unit or office; and 
"(F) to assist the local community in developing its own 
coordinated response and in obtaining access to State economic 
development assistance. 
"(2) In a situation involving an impending permanent closure or 
substantial layoff, a State may provide funds, where other public or 
private resources are not expeditiously available, for a preliminary 
assessment of the advisability of conducting a comprehensive study 
exploring the feasibility of having a company or group, including the 
workers, purchase the plant and continue it in operation. 
"(c) BASIC READJUSTMENT SERVICES.—Funds allotted under section 
302 may be used to provide basic readjustment services to eligible 
dislocated workers. Subject to limitations set forth in subsection (e) 
and section 315(a), the services may include (but are not limited 
to)— 
"(1) development of individual readjustment plans for partici-
pants in pn^rams under this title; 
"(2) outreach and intake; 
"(3) early readjustment assistance; 
"(4) job or career counseling; 
"(5) testing; 
"(6) orientation; 
"(7) assessment, including evaluation of educational attain-
ment and participant interests and aptitudes; 
"(8) determination of occupational skills; 
"(9) provision of future world-of-work and occupational 
information; 
"(10) job placement assistance; 
"(11) labor market information; 
"(12) job clubs; 
"(13) job search; 
102 STAT. 1534 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(14) job development; 
"(15) supportive services, including child care, commuting 
assistance, and financial and personal counseling which shall 
terminate not later than the 90th day after the participant has 
completed other services under this part, except that counseling 
necessary to assist participants to retain employment shall 
terminate not later than 6 months following the completion of 
training; 
"(16) prelayoff assistance; 
"(17) relocation assistance; and 
"(18) programs conducted in cooperation with employers or 
labor organizations to provide early intervention in the event of 
closures of plants or facilities. 
"(d) RETRAINING SERVICES.—(1) Funds allotted under section 302 
may be used to provide training services under this part to eligible 
dislocated workers. Such services may include (but are not limited 
to)— 
"(A) classroom training; 
"(B) occupational skill training; 
"(C) on-the-job training; 
"(D) out-of-area job search; 
"(E) relocation; 
"(F) basic and remedial education; 
"(G) literacy and English for non-English speakers training; 
"(H) entrepreneurial training; and 
"(I) other appropriate training activities directly related to 
appropriate employment opportunities in the substate area. 
"(2) No funds under this part may be expended to provide wages 
for public service employment. 
"(e) NEEDS-RELATED PAYMENTS.—(1) Funds allocated to a substate 
grantee under section 302(d) may be used pursuant to a substate 
plan under section 313 to provide needs-related payments to an 
eligible dislocated worker who does not qualify or has ceased to 
qualify for unemployment compensation, in order to enable such 
worker to participate in training or education programs under this 
title. To be eligible for such payments, an eligible dislocated worker 
who has ceased to qualify for unemployment compensation must 
have been enrolled in training by the end of the 13th week of the 
worker's initial unemployment compensation benefit period, or, if 
later, the end of the 8th week after an employee is informed that a 
short-term layoff will in fact exceed 6 months. 
"(2) The level of needs-related payments shall be made available 
at a level not greater than the higher of— 
"(A) the applicable level of unemployment compensation; or 
"(B) the poverty level determined in accordance with criteria 
established by the Director of the Office of Management and 
Budget. 
"(f) COORDINATION WITH UNEMPLOYMENT COMPENSATION.—Funds 
allocated to a State under section 302 may be used for coordination 
of worker readjustment programs and the unemployment compensa-
tion system, consistent with the limitation on administrative 
expenses in section 315. Each State shall be responsible for coordi-
nating the unemployment compensation system and 
worker 
readjustment programs within such State. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1535 
LIMITATIONS ON USES OF FUNDS 
"SEC. 315. (a) USE OF FUNDS FOR RETRAINING SERVICES.—(1) Not 
29 use I66id. 
less than 50 percent of the funds expended under this title by any 
substate grantee shall be expended for retraining services specified 
under section 314(d). 
"(2) A substate grantee may apply to the Governor for a waiver of 
the requirement in paragraph (1). Such waiver may not permit less 
than 30 percent of the fimds to be spent for such retraining services. 
The waiver may be granted in whole or in part if the substate 
grantee demonstrates that the worker readjustment prc^am in the 
area will be consistent with the principle that dislocated workers be 
prepared for occupations or industries with long-term potential. The 
Governor shall prescribe criteria for the demonstration required by 
the previous sentence. 
"(3) An application for such a waiver shall be submitted at such 
time and in such form as the Governor may prescribe. The Governor 
shall provide an opportunity for public comment on the application. 
"(h) NEEDS-RELATED PAYMENTS AND SUPPORTIVE SERVICES LIMITA-
TION.—Not more than 25 percent of the funds expended under this 
title by any substate grantee or by the Governor may be used to 
provide needs-related pa3rments and other supportive services. 
"(c) ADMINISTRATIVE COST LIMITATION.—Not more than 15 percent 
of the funds expended under this title by any sutetate grantee or by 
the Governor may be expended to cover the administrative cost of 
programs under this title. For purposes of this subsection, adminis-
trative cost does not include the cost of activities imder section 
314(b). 
"RETRAINING SERVICES AVAILABILITY 
"SEC. 316. (a) ALTERNATIVE METHODS OF PROVIDING RETRAINING 
29 use I66ie. 
SERVICES.—A substate grantee may provide retraining services de-
scribed in section 314(d) to an eligible dislocated worker— 
"(1) by beginning such services promptly upon the worker's 
application for the program under this title; 
"(2) by deferring the beginning of such services and providing 
the worker with a certificate of continuing eligibility in accord-
ance with subsection (b) (1) and (2); or 
"(3) by permitting the worker to obtain such services from a 
service provider using such certificate in accordance with 
subsection (bX3). 
"(b) CERTIFICATION OF Ck)NTiNUiNG EUGIBILITY.—(1) A substate 
grantee may issue to any eligible dislocated worker who has applied 
for the program authorized in this part a certificate of continuing 
eligibility. Such a certificate of continuing eligibility may be effec-
tive for periods not to exceed 104 weeks. No such certificate shall 
include any reference to any specific amount of funds. Any such 
certificate shall state that it is subject to the availability of funds at 
the time that any such training services are to be provided. Accept-
ance of such a certificate shall not be deemed to be enrollment in 
training. 
"(2) Any individual to whom a certificate of continuing eligibility 
has been issued under paragraph (1) of this subsection shall remain 
eligible for the prc^am authorized under this part for the period 
specified in the certificate, notwithstanding section 301(a), and may 
use the certificate in order to receive the retrsdning services, subject 
to the limitations contained in the certificate. 
102 STAT. 1536 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(3) A substate grantee may provide training services through 
systems that permit eligible dislocated workers to use certificates of 
continuing eligibility to seek out and arrange their own retraining 
Contracts. 
with service providers approved by that substate grantee. Retrain-
ing provided pursuant to the certificate shall be conducted under a 
grant, contract, or other arrangement between the substate grantee 
and the service provider. 
"FUNCTIONS OF STATE JOB TRAINING COORDINATING COUNCIL 
29 use I66lf. 
"SEC. 317. For purposes of this title, the State job training coordi-
nating council shall— 
"(1) provide advice to the Governor regarding the use of funds 
under this title, including advice on— 
"(A) the designation of substate areas and substate 
grantees, and the procedures for the selection of representa-
tives within such areas under section 312; and 
"(B) the methods for allocation and reallocation of funds, 
including the method for distribution of funds reserved 
under section 302(c)(2) and funds subject to reallocation 
under section 303(d); 
"(2) submit comments to the Governor and the Secretary on 
the basis of review of the State and substate programs under 
this title; 
"(3) review, and submit written comments on, the State plan 
(and any modification thereof) before its submission under sec-
tion 311; 
"(4) review, and submit written comments on, each substate 
plan submitted to the Governor under section 313; and 
"(5) provide advice to the Governor regarding performance 
standards. 
"PART B—FEDERAL RESPONSIBILITIES 
FEDERAL ADMINISTRATION 
29 use 1662. 
"SEC. 321. (a) STANDARDS.—The Secretary shall promulgate stand-
ards for the conduct and evaluation of programs under this title. 
"(b) BY-PASS AUTHORITY.—In the event that any State fails to 
submit a plan that is approved under section 311, the Secretary 
shall use the amount that would be allotted to that State to provide 
for the delivery in that State of the programs, activities, and serv-
ices authorized by this title until the State plan is submitted and 
approved under that section. 
"FEDERAL DELIVERY OF DISLOCATED WORKER SERVICES 
29 use 1662a. 
"SEC. 322. (a) GENERAL AUTHORITY.—The Secretary shall, with 
respect to programs required by this title— 
"(1) distribute funds to States in accordance with the require-
ments of section 302; 
"(2) provide funds to exemplary and demonstration programs 
on plant closings and worker dislocation; 
(3) otherwise allocate discretionary funds to projects serving 
workers affected by multi-State or industry-wide dislocations 
and to areas of special need in a manner that efficiently targets 
resources to areas of most need, encourages a rapid response to 
economic dislocations, and promotes the effective use of funds; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1537 
"(4) monitor performance and expenditures and annually 
certify compliance with standards prescribed by the Secretary 
under section 106(g); 
"(5) conduct research and serve as a nationsil clearinghouse 
for gathering and disseminating information on plant closings 
and worker dislocation; and 
"(6) provide technical assistance and staff training services to 
States, communities, businesses, and unions, as appropriate. 
"(b) ADMINISTRATIVE PROVISIONS.—The Secretary shall designate 
or create an identifiable dislocated workers unit or office to coordi-
nate the functions of the Secretary under this title. 
Research and 
development. 
ALLOWABLE ACTIVITIES 
"SEC. 323. (a) CIRCUMSTANCES AND ACTIVITIES FOR USE OF FUNDS.— 29 use I662b. 
Amounts reserved for this part under section 302(aX2) may be used 
to provide services of the tjrpe described in section 314 in the 
following circumstances: 
"(1) mass layoffs, including mass layoffs caused by natural 
disasters or Federal actions (such as relocations of Federal 
facilities) when the workers are not expected to return to their 
previous occupations; 
"(2) industrywide projects; 
"(3) multistate projects; 
"(4) special projects carried out through agreements with 
Indian tribal entities; 
"(5) special projects to address national or regional concerns; 
"(6) demonstration projects, including the projects described 
in section 324; 
"(7) to provide additional financial assistance to programs and 
activities provided by States and substate grantees under part A 
of this title; and 
"(8) to provide additional assistance under proposals for finan-
cial assistance that are submitted to the Secretary and approved 
by the Secretary after consultation with the Governor of the 
State in which the project is to operate. 
"(b) USE OF FUNDS IN EMERGENCIES.—Amounts reserved for this 
part under section 302(aX2) may also be used to provide services of 
the type described in section 314 whenever the Secretary (with 
agreement of the Governor) determines that an emergency exists 
with respect to any particular distressed industry or any particu-
larly distressed area to provide emergency financial assistance to 
dislocated workers. The Secretary may make arrangements for the 
immediate provision of such emergency financial assistance for the 
purposes of this section with any necessary supportive documenta-
tion to be submitted at a date agreed to by the Governor and the 
Secretary. 
"(c) STAFF TRAINING AND TECHNICAL ASSISTANCE.—(1) Amounts 
reserved for this part under section 302(aX2) may be used to provide 
staff trsdning and technical assistance services to States, commu-
nities, businesses and labor organizations, and other entities 
involved in providing adjustment assistance to workers. Applica-
tions for technical assistance funds shall be submitted in accordance 
with procedures issued by the Secretary. 
"(2) Not more than 5 percent of the funds reserved for this part in 
any fiscal year shall be used for the purpose of this subsection. 
102 STAT. 1538 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(d) TRAINING OF RAPID RESPONSE STAFFS.—Amounts reserved for 
this part under section 302(aX2) shall be used to provide training of 
staff, including specialists, providing rapid response services. Such 
training shall include instruction in proven methods of promoting, 
establishing, and assisting labor-management committees. 
"DEMONSTRATION PROGRAMS 
29 use 1662c. 
"SEC. 324. (a) AUTHORIZED PROGRAMS.—From the amount reserved 
for this part under section 302(aX2) for the fiscal years 1989, 1990, 
and 1991, not less than 10 percent of such amount shall be used for 
demonstration programs. Such demonstration programs may be up 
to three years in length, and shall include (but need not be limited 
to) at least two of the following demonstration programs: 
"(1) self-employment opportunity demonstration program; 
"(2) public works emplo3mient demonstration program; 
"(3) dislocated farmer demonstration program; and 
"(4) job creation demonstration program. 
"(b) EVALUATION AND REPORT.—The Secretary shall conduct or 
provide for an evaluation of the success of each demonstration 
program, and shall prepare and submit to the C!ongress a report of 
the evaluation not later than October 1, 1992, together with such 
recommendations, including recommendations for legislation, as the 
Secretary deems appropriate.". 
SEC. 6303. AUTHORIZATION OF APPROPRIATIONS. 
29 use 1502. 
Section 3(c) of the Job Training Partnership Act is amended to 
read as foUows: 
"(c) There are authorized to be appropriated to carry out title III— 
"(1) $980,000,000 for fiscal year 1989; and 
"(2) such sums as may be necessary for each succeeding fiscal 
year.". 
SEC. 6304. CONFORMING AMENDMENTS. 
(a) PERPORMANcaE STANDARDS.—Section 106 of the Job Training 
29 use 1516. 
Partnership Act is amended— 
(1) in subsection (e)— 
(A) by inserting "and subsection (g)" after "subsection"; 
(B) by inserting after "State" the following: "and in 
substate areas"; and 
(2) in subsection (g)— 
(A) by inserting "(1)" after "(g)"; and 
(B) by adding at the end thereof the following new para-
graph: 
"(2) Any performance standard that may be prescribed under 
paragraph (1) of this subsection shall make appropriate allowance 
for the difference in cost resulting from serving workers receiving 
needs-related payments iinder section 314(e).". 
(b) STATE JOB TRAINING COORDINATING COUNCIL.—Section 122(aX3) 
29 use 1532. 
of tibe Job Training Partnership Act is amended to read as follows: 
"(3) The State job training coordinating council shall be composed 
as follows: 
"(A) Thirty percent of the membership of the State council 
shall be representatives of business and industry (including 
agriculture, where appropriate), including individuals who are 
representatives of business and industry on private industry 
I councils withm the State. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1539 
"(B) Thirty percent of the membership of the State council 
shall be— 
"(i) representatives of the State legislature, and State 
agencies and organizations, such as the State educational 
agency, the State vocational education board, the State 
advisory council on vocational education, the State board of 
education (when not otherwise represented). State public 
gissistance agencies, the State employment security agency, 
the State rehabilitation agency, the State occupational 
information coordinating committee, State postsecondary 
institutions, the State economic development agency, State 
veterans' affairs agencies or equivalent, and such other 
agencies as the Governor determines to have a direct in-
terest in employment and training and human resource 
utilization within the State; and 
"(ii) representatives of the units or consortia of general 
local government in the State who shall be nominated by 
the chief elected officials of the units or consortia of units of 
general local government, and the representatives of local 
educational agencies who shall be nominated by local edu-
cational agencies. 
"(C) Thirty percent of the membership of the State council 
shall be representatives of organized labor and representatives 
of community-based organizations in the State. 
"(D) Ten percent of the membership of the State council shall 
be appointed from the general public by the Governor of the 
State.^'. 
(c) TABLE OF CONTENTS.—The table of contents of such Act is 
amended by striking out the portion pertaining to title III and 
inserting the following: 
"TITLE m—EMPLOYMENT AND TRAINING ASSISTANCE FOR DISLOCATED 
WORKERS 
"Sec. 301. Definitions. 
' 
"Sec. 302. Allotment. 
"Sec. 303. Recapture and reallotment of unexpended funds. 
"PART A—STATE DEUVERY OF SERVICES 
"Sec. 311. Stete plan. 
"Sec. 312. Substate grantees. 
• 
"Sec. 313. Substate plan. 
"Sec. 314. Use of funds; services to be provided. 
' 
"Sec. 315. Limitations on uses of funds. 
"Sec. 316. Retraining services availability. 
"Sec. 317. Functions of State job training coordinating council. 
"PART B—FEDERAL RESPONSIBILITIES 
"Sec. 321. Federal administration. 
"Sec. 322. Federal delivery of dislocated worker services. 
"Sec. 323. Allowable activities. 
"Sec. 324. Demonstration programs.". 
SEC. 6305. TRANSITION PROVISIONS. 
29 USC1651 note. 
(a) GENERAL RULE.—Except as otherwise provided in this section. 
Effective date. 
the amendments made by sections 6302 and 6304 shall be effective 
for program years beginning on or after July 1,1989. 
(b) PROGRAM YEAR 1988-1989.—The Secretary of Labor and Gov-
ernors shall, during the program year beginning July 1, 1988, 
continue to administer title III of the Job Training Partnership Act 
in the same manner as such title was administered during prior 
102 STAT. 1540 
PUBLIC LAW 100-418—AUG. 23, 1988 
program years, except to the extent necessary to provide for an 
orderly transition to and implementation of the amendments made 
by this subtitle. The Secretary and Governors may, for such pur-
poses, use funds appropriated for fiscal year 1989 or any preceding 
fiscal year to carry out appropriate transition and implementation 
activities. Such activities may include— 
(1) activities to prevent disruption in the delivery of services 
to program participants; and 
(2) planning for and implementation of such amendments. 
(c) STATE JOB TRAINING COORDINATING COUNCIL,—A State job 
training coordinating council shall comply with the changes in 
membership required by the amendment made by section 6304(b) 
not later than January 1, 1989. Upon certification by the Governor 
to the Secretary that such changes in membership have been accom-
plished, such council shall begin to perform the functions specified 
by section 317 of the Job Training Partnership Act (as amended by 
this subtitle). 
(d) SuBSTATE AREAS AND GRANTEES.—The designation of substate 
areas and substate grantees required by the amendment to title III 
of such Act shall be completed not later than March 1, 1989. 
(e) LIMITATION ON CARRY-OVER OF FUNDS.—The provisions of sec-
tion 303 of such Act (as amended) shall apply to the program year 
beginning July 1,1988, except that, for such program year— 
(1) subsection (b)(1) of such section shall be applied by 
substituting "30 percent" for "20 percent"; and 
(2) subsection (e) of such section shall be applied by substitut-
ing "70 percent" for "80 percent". 
(0 REGULATIONS.—The Secretary of Labor shall prescribe such 
regulations as may be required to implement the amendments made 
by this subtitle not later than November 1,1988. 
SEC. 6306. STUDIES. 
(a) DATA ON DISPLACED FARMERS AND RANCHERS.—Section 462 of 
29 use 1752. 
such Act is amended by adding at the end the following new 
subsection: 
"(fKD The Secretary shall develop, in coordination with the Sec-
retary of Agriculture, statistical data relating to permanent disloca-
tion of farmers and ranchers due to farm and ranch failures. Among 
the data to be included are— 
"(A) the number of such farm and ranch failures; 
"(B) the number of farmers and ranchers displaced; 
"(C) the location of the affected farms and ranches; 
"(D) the types of farms and ranches involved; and 
"(E) the identification of farm family members, including 
spouses, and farm workers working the equivalent of a full-time 
job on the farm who are dislocated by such farm and ranch 
failures. 
Reports. 
"(2) The Secretary shall publish a report based upon such data as 
soon as practicable after the end of each calendar year. Such report 
shall include a comparison of data contained therein with data 
currently used by the Bureau of Labor Statistics in determining the 
Nation's annual employment and unemployment rates and an 
analysis of whether farmers and ranchers are being adequately 
counted in such employment statistics. Such report shall also in-
clude an analysis of alternative methods for reducing the adverse 
effects of displacements of farmers and ranchers, not only on the 
individual farmer or rancher, but on the surrounding community ". 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1541 
Reports. 
(b) FAILURE TO PROVTOE INTERNATIONALLY RECOGNIZED WORKER 
29 use 565 
RIGHTS.—(1) The Secretary of Labor shall conduct a study, in con-
sultation with the Secretary of State, to identify the extent to which 
countries recognize and enforce, and the producers fail to comply 
with, internationally recognized worker rights. A report on the 
study conducted under this subsection shall be submitted to Con-
gress biennially. 
(2) As used in this Act, the term "intemation£illy recognized 
worker rights" includes— 
(A) the right of association; 
(B) the right to organize and bargain collectively; 
(C) the right to be free from the use of any form of forced or 
compulsory labor; 
(D) a minimum age for the emplojnnent of children; and 
(E) acceptable conditions of work with respect to minimum 
wages, maximum hours of work, and occupational safety and 
health. 
(c) ADDITIONAL STUDIES.—The National Commission for Employ-
ment Policy shall conduct research related to the provisions of this 
title. Such research shall include examinations of— 
(1) the role of the employment services in implementing 
programs to enhance services provided under this title, and 
(2) alternative techniques for managing production cutbacks 
without permanently reducing workforces. 
A report on the research conducted under this subsection shall be 
submitted to the Congress not later than 18 months after the date of 
enactment of this Act. 
SEC. 6307. JOB BANKS. 
(a) AMENDMENT.—^Title V of the Job Training Partnership Act is 
amended by adding at the end thereof the following new section: 
Research and 
development. 
29 u s e 1651 
note. 
Reports. 
STATE JOB BANK SYSTEMS 
"SEC. 505. (aXD The Secretary shall carry out the purposes of this 
section with sums appropriated pursuant to paragraph (2) for any 
fiscal year. 
"(2) There are authorized to be appropriated to carry out this 
section $50,000,000 for fiscal year 1989 and such sums as may be 
necessary for each succeeding fiscal year. 
"(b) The Secretary shall make such sums available through the 
United States Employment Service for the development and im-
plementation of job bank systems in each State. Such systems shall 
be d e s e e d to use computerized electronic data processing and 
telecommunications systems for such purposes as— 
"(1) identifying job openings and referring jobseekers to job 
openings, with continual updating of such information; 
"(2) providing information on occupational supply and 
demand; and 
"(3) utilization of such systems by career information delivery 
systems (including career counseling programs in schools). 
"(c) Wherever possible, computerized data systems developed with 
assistance under this section shall be capable of utilizing software 
compatible with other systems (including management information 
systems and unemployment insurance and other income mainte-
nance programs) used in the administration of emplojmient and 
training programs. In developing such systems, special consider-
29 u s e 1505. 
Appropriation 
authorization. 
eomputers. 
eommunications 
and 
telecommunications. 
Computers. 
102 STAT. 1542 
PUBLIC LAW 100-418—AUG. 23, 1988 
National Science 
Foundation 
University 
Infrastructure 
Act of 1988. 
Research and 
development. 
Schools and 
colleges. 
Museums. 
42 u s e 1861 
note. 
42 u s e 1862a. 
Regulations. 
ation shall be given to the advice and recommendations of the State 
occupational information 
coordinating committees 
(established 
under section 422(b) of the Carl D. Perkins Vocational Education 
Act), and other users of such systems for the various purposes 
described in subsection (b) of this section.". 
(b) CLERICAL AMENDMENT.—The table of contents of such Act is 
amended by inserting after the item relating to section 504 the 
following: 
"Sec. 505. State job bank systems.". 
Subtitle E—National Science Foundation 
University Infrastructure 
SEC. 6401. SHORT TITLE. 
This subtitle may be cited as the "National Science Foundation 
University Infrastructure Act of 1988". 
SEC. 6402. NATIONAL 
SCIENCE 
FOUNDATION ACADEMIC RESEARCH 
FACILITIES MODERNIZATION PROGRAM. 
(a) PURPOSE.—It is the purpose of this section to assist in 
modernizing and revitalizing the Nation's research facilities at 
institutions of higher education, independent nonprofit research 
institutions and research museums through capital investments. 
(b) ESTABLISHMENT OF PROGRAM.—To carry out this purpose, the 
National Science Foundation shall establish and carry out an Aca-
demic Research Facilities Modernization Program, under which 
awards shall be made to institutions of higher education, independ-
ent nonprofit research institutions and research museums, and 
consortia thereof, for the repair, renovation, or replacement (as 
appropriate) of such institutions' obsolete laboratories and other 
research facilities. 
(c) PROJECTS AND FUNDING.—(1) The Academic Research Facilities 
Modernization 
Program established by the National 
Science 
Foundation pursuant to subsection (b) shall be carried out, through 
projects— 
(A) which involve the repair, renovation, or replacement (as 
appropriate) of specific research facilities at the eligible institu-
tions or consortia thereof involved, and 
(B) for which funds are awarded in response to specific pro-
posals submitted by such eligible institutions or consortia 
thereof in accordance with regulations prescribed by the Direc-
tor of the Foundation, pursuant to subsection (d), with the 
objective of carrying out the purpose of this section. 
(2) The regulations so prescribed shall contain such terms, condi-
tions, and guidelines as may be necessary in the light of that 
objective, but shall in any event provide that— 
(A) funds to carry out the program will be awarded to an 
institution after a comprehensive review using established 
Foundation procedures, and 
(B) the funds so awarded to any eligible institution or consor-
tia thereof will be in an amount equal to not more than 50 
percent of the cost of the repair, renovation, or replacement 
involved (with the funds required to meet the remainder of such 
cost being provided by the institution involved or consortia 
thereof or from other non-Federal public or private sources). 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1543 
(d) CRITERIA FOR AWARDS.—(1) Annually, or prior to the issuance 
of a program announcement for solicitation of proposals for the 
award of funds to any institution or consortia thereof for a project 
under the National Science Foundation Academic Research Facili-
ties Modernization Program, the National Science Foundation shall 
publish in the Federal Register interim guidelines for public review 
and comment for a period of 60 days. Such guidelines shall include 
(but not be limited to) the following: 
(A) specific definitions for the terms: facilities, instrumenta-
tion, equipment, repair, renovation, and replacement; 
(B) specific selection criteria to be used in evaluating the 
scientific merit of proposals and, in making awards to an 
institution or to consortia thereof, including an analysis of the 
age and condition of existing research facilities; and 
(C) specific provisions for matching the Federal grant pursu-
ant to subsection O^)-
(2) Final guidelines shall be published in the Federal Register 60 
days following the close of the comment period incorporating such 
appropriate revisions as may arise from comments received during 
the review period. The guidelines, at a minimum, shall include 
selection criteria for the following: 
(A) the quality of the research and training to be carried out 
in the facility or facilities involved; 
(B) the congruence of the institution's research and training 
activities with the future research needs of the Nation and the 
training and research mission of the National 
Science 
Foundation; 
(C) the contribution which the project will make toward 
meeting national, regional, and the institution's research and 
related training needs; and 
(D) the need for the proposed repair, renovation, or replace-
ment (as appropriate) based on an analysis of the age and 
condition of existing research facilities and equipment. 
(e) DISTRIBUTION OF FUNDS.—Awards made under the National 
Science Foundation Academic Research Facilities Modernization 
Program shall not exceed $5,000,000 to any institution or consor-
tium over any period of 5 years for the repair, renovation, or 
replacement (as appropriate) of academic research facilities. 
(f) CONSULTATIONS.—In prescribing criteria and conducting the 
program under this section, the Director of the National Science 
Foundation shall consult with the Secretary of Education and other 
related agencies. 
(g) RESERVATIONS FOR CERTAIN INSTITUTIONS.—(1) At least 15 per-
cent of the amount which is appropriated pursuant to this section in 
any fiscal year shall be available only for awards to universities, 
colleges, and research museums that received less than $10,000,000 
in total Federal obligations for research and development (including 
obligations for the activities authorized in this section and section 
6403) in each of the two preceding fiscal years. 
(2) Of the amounts appropriated under this section in each fiscal 
year at least 10 percent of the funds shall be reserved for institu-
tions of higher education servicing a substantial percentage of 
students who are Black Americans, Native Americans, Hispanic 
Americans, Alaskan Natives (Eskimos or Aleut), Native Hawaiian, 
American Samoan, Micronesian, Guamanian (Chamorro), Northern 
Marianian, or Palauan. 
Federal 
Register, 
publication. 
Federal 
Register, 
publication. 
Grants. 
Grants. 
Minorities. 
Indians. 
102 STAT. 1544 
PUBLIC LAW 100-418—AUG. 23, 1988 
(3) Requirements of paragraph (2) may be satisfied by considering 
the funds awarded under paragraph (1) to the institutions described 
in paragraph (2). 
(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated $85,000,000 for fiscal year 1989 to carry out the 
National Science Foundation Academic Research Facilities Mod-
ernization Program. Such sums shall be available for that Program 
every year thereafter subject-to the authorizations and appropria-
tions of activities for the ^fational Science Foundation. 
42 u s e 1862b. 
SEC. 6403. NATIONAL 
SCIENCE 
FOUNDATION 
COLLEGE 
SCIENCE 
INSTRUMENTATION PROGRAM. 
(a) PURPOSE.—It is the purpose of this section to eissist in revitaliz-
ing the Nation's academic instructional instrumentation at colleges. 
(b) ESTABUSHMENT OF PROGRAM.—TO carry out this purpose, the 
National Science Foundation shall establish and carry out the 
College Science Instrumentation Program, under which awards are 
made only to two-year and community colleges and four-year, non-
Ph.D. 
degree-granting institutions or consortia thereof for the 
purchase of instructional instrumentation. 
(c) PROJECTS AND FUNDING.—(1) The College Science Instrumenta-
tion Program established by the National Science Foundation pursu-
ant to subsection 0?) shall be carried out, through projects— 
(1) which involve the purchase and replacement (as appro-
priate) of specific instructional instrumentation at the institu-
tions involved, and 
(2) for which funds are awarded in response to specific propos-
als submitted by such institutions or consortia thereof on a 
competitive basis in accordance with regulations prescribed by 
the Director of the Foundation with the objective of carrying 
out the purposes of this Act. 
Regulations. 
(2) The regulations so prescribed shall contain such terms, condi-
tions, and guidelines as may be necessary in the light of that 
objective, but shall in any event provide that— 
(A) funds to carry out the program will be awarded to an 
institution or consortia thereof after a comprehensive review 
using established Foundation procedures, and 
(B) the funds so awarded to any academic institution will be 
in an amount equal to not more than 50 percent of the cost of 
the purchase and replacement involved (with the funds required 
to meet the remainder of such cost being provided by the 
institution involved or from other non-Federal public or private 
sources), 
(d) CRITERIA FOR AWARDS.—The National Science Foundation will 
evaluate proposals on the basis of the following criteria: 
(1) PERFORMANCE COMPETENCE.—This criterion relates to the 
capacity of the investigator or investigators, the technical 
soundness of the proposed approach, the adequacy of the institu-
tional resources available, and the proposed recent research/ 
science education performance. 
(2) INTRINSIC MERIT.—This criterion relates to the quality, 
currency, and significance of the scientific content and related 
instructional activity of the project within the context of under-
graduate science, mathematics, and engineering education. 
(3) UTIUTY OR RELEVANCE.—This criterion relates to the 
impact the project will have at the proposing institution, and 
the relevance of the project in the local context. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1545 
(4) EFFECT ON THE INFRASTRUCTURE OF SCIENCE AND ENGINEER-
ING.—This criterion relates to the potential of the proposed 
project to contribute to better understanding or improvement of 
the quality, distribution, effectiveness of the Nation's scientific 
and engineering research, education, and manpower base. 
(e) CONSULTATIONS.—In prescribing regulations and conducting 
the program under this section, the Director of the National Science 
Foundation shall consult with the Secretary of Education and other 
related agencies. 
(f) AUTHORIZATION OF APPROPRIATIONS.—Such sums shall be avail-
able for the College Science Instrumentation Program subject every 
year to the authorizations and appropriations for the National 
Science Foundation. 
TITLE VII—BUY AMERICAN ACT OF 1988 
SEC. 7001. SHORT TITLE. 
This title may be cited as the "Buy American Act of 1988". 
SEC. 7002. AMENDMENTS TO THE BUY AMERICAN ACT. 
Title III of the Act of March 3, 1933 (41 U.S.C. lOa-lOd), is 
amended— 
(1) by redesignating sections 4 and 5 as sections 5 and 6, 
respectively; and 
(2) by inserting after section 3 the following new section: 
"SEC. 4. (a) A Federal agency shall not award any contract— 
"(1) for the procurement of an article, material, or supply 
mined, produced, or manufactured— 
"(A) in a signatory country that is considered to be a 
signatory not in good standing of the Agreement pursuant 
to section 305(f)(3)(A) of the Trade Agreements Act of 1979; 
or 
"(B) in a foreign country whose government maintains, in 
government procurement, a significant and persistent pat-
tern or practice of discrimination against United States 
products or services which results in identifiable harm to 
United States businesses, as identified by the President 
pursuant to section 305(gXl)(A) of such Act; or 
"(2) for the procurement of a service of any contractor or 
subcontractor that is a citizen or national of a foreign country 
identified by the President pursuant to section 305(fK3XA) or 
305(gXl)(A) of such Act, or is owned or controlled directly or 
indirectly by citizens or nationals of such a foreign country. 
"(b) The prohibition on procurement in subsection (a) is subject to 
sections 305(h) and 305(j) of such Act and shall not apply— 
"(1) with respect to services, articles, materials, or supplies 
procured and used outside the United States and its territories; 
"(2) notwithstanding section 305(g) of such Act, to an eligible 
product of a country which is a signatory country unless that 
country is considered to be a signatory not in good standing 
pursuant to section 305(fK3)(A) of such Act; or 
"(3) notwithstanding section 305(g) of such Act, to a country 
that is a least developed country (as that term is defined in 
section 308(6) of that Act). 
"(c) Notwithstanding subsection (a) of this section, the President 
or the head of a Federal agency may authorize the award of a 
Buy American 
Act of 1988. 
Contracts. 
41 u s e 10a note. 
41 u s e 10c 
notes. 
41 u s e lOb-1. 
Minerals and 
mining. 
102 STAT. 1546 
PUBLIC LAW 100-418—AUG. 23, 1988 
contract or class of contracts if the President or the head of the 
Federal agency— 
"(1) determines that such action is necessary— 
"(A) in the public interest; 
"(B) to avoid the restriction of competition in a manner 
which would limit the procurement in question to, or would 
establish a preference for, the services, articles, materials, 
• or supplies of a single manufacturer or supplier; or 
"(C) because there would be or are an insufficient number 
of potential or actual bidders to assure procurement of 
services, articles, materials, or supplies of requisite quality 
at competitive prices; and 
"(2) notifies the Committee on Grovernmental Affairs of the 
Senate, as well as other appropriate Senate committees, and the 
appropriate conmiittees of the House of Representatives, of such 
determination— 
"(A) not less than 30 days prior to the date of the award 
of the contract or the date of authorization of the award of a 
class of contracts; or 
"(B) if the agency's need for the service, article, material, 
or supply is of such urgency that the United States would 
be seriously injured by dela3dng the award or authorization, 
not more than 90 days after the date of such award or 
authorization. 
"(d) The authority of the head of a Federal agency under subsec-
tion (c) shall not apply to contracts subject to memorandums of 
understanding entered into by the Department of Defense (or any 
military department) and a representative of a foreign country (or 
agency or instrumentality thereof). In the case of any such con-
tracts, any determinations and notice required by subsection (c) 
shall be made by— 
"(1) the President, or 
"(2) if delegated, by the Secretary of Defense or the Secretary 
of the Army, Navy, or Air Force, subject to review and policy 
guidance by the organization established under section 242(a) of 
the Trade Expansion Act of 1962 (19 U.S.C. 1872(a)). 
"(e) The authority of the head of a Federal agency under subsec-
tion (c) or (d) of this section may not be delegated. 
"(f) Nothing in this section shall restrict the application of the 
prohibition under section 302(aXl) of the Trade Agreements Act of 
1979. 
"(gXD For purposes of this section with respect to construction 
services, a contractor or subcontractor is owned or controlled di-
rectly or indirectly by citizens or nationals of a foreign country if— 
"(A) 50 percent or more of the voting stock of the contractor 
or subcontractor is owned by one or more citizens or nationals of 
the foreign country; 
"(B) the title to 50 percent or more of the stock of the 
contractor or subcontractor is held subject to trust or fiduciary 
obligations in favor of one or more citizens or nationals of the 
foreign country; 
"(C) 50 percent or more of the voting stock of the contractor or 
subcontractor is vested in or exercisable on behalf of one or 
more citizens or nationals of the foreign country; 
"(D) the case of a corporation— 
"(i) the number of its directors necessary to constitute a 
quorum are citizens or nationals of the foreign country; or 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1547 
"(ii) the corporation is organized under the laws of the 
forei^ country or any subdivision, territory, or possession 
thereof; or 
"(E) in the case of a contractor or subcontractor who is a 
participant in a joint venture or a member of a partnership, any 
participant of the joint venture or partner meets any of the 
criteria in subparagraphs (A) through (D) of this paragraph. 
"(2XA) For purposes of this section, except as provided in para-
graph (1), a determination of whether a contractor or subcontractor 
is a citizen or national of a foreign country or is owned or controlled 
directly or indirectly by citizens or nationals of a foreign country 
shall be made in accordance with poUcy guidance prescribed by the 
Administrator for Federal Procurement Policy after conducting one 
or more public hearings at which interested parties may present 
comments. Sections 556 and 557 of title 5, United States Code, shall 
not apply to the conduct of any such hearing. 
"(B) llie Administrator shall include in the policy guidance pre-
scribed imder subparagraph (A) definitions, procedures, standards, 
and rules that, to the extent the Administrator considers appro-
priate and consistent with the applicability of such policy guidance 
to all services (other than construction services), is the same as or 
similar to the definitions, procedures, standards, and rules that the 
Administrator has developed and issued for the administration of 
section 109 of the Treasury, Postal Service, and General Govern-
ment Appropriations Act, 1988 (101 Stat. 1329-434). 
"(C) The policy guidance required by subparagraph (A) shall be 
prescribed not later than 180 days after the date of enactment of 
this subsection. 
"(3XA) The Administrator for Federal Procurement Policy shall 
conduct an assessment of the current rules under this Act for 
making determinations of country of origin and alternatives to such 
rules. Such assessment shall identify and evaluate (i) reasonable 
alternatives to such rules of origin, including one or more alter-
native rules that require a determination on the basis of total cost, 
and (ii) the specific cost factors that should be included in determin-
ing toted cost. 
(B) In conducting the analysis, the Administrator shall consult 
and seek comment from representatives of United Stetes labor and 
business, other interested United States persons, and other Federal 
agencies. The Administrator shall hold public hearings for the 
purpose of obtaining such comment, and a transcript of such hear-
ings shall be appended to the report required by subparagraph (C). 
'(C) A report on the results of the analysis shall be submitted to Reports. 
the appropriate committees of the House of Representatives and to 
the Committee on Governmental Affairs and other appropriate 
committees of the Senate not later than 18 months after the date of 
enactment of this subsection. Such report shall include proposed 
policy guidance or any recommended legislative changes on the 
factors to be used in making determinations of country of origin. 
"(h) As used in this section— 
"(1) the term 'Agreement' means the Agreement on Govern-
ment Procurement as defined in section 308(1) of the Trade 
Agreements Act of 1979; 
' (2) the term 'signatory' means a party to the Agreement; and 
"(3) the term 'eligible product' has the meaning given such 
term by section 308(4) of the Trade Agreements Act of 1979 
(19 U.S.C. 2518(4)).". 
102 STAT. 1548 
PUBLIC LAW 100-418—AUG. 23, 1988 
President of U.S. 
SEC. 7003. PROCEDURES TO PREVENT GOVERNMENT PROCUREMENT 
DISCRIMINATION. 
Section 305 of the Trade Agreements Act of 1979 (19 U.S.C. 2515) 
is amended by adding at the end thereof the following: 
"(d) ANNUAL REPORT ON FOREIGN DISCRIMINATION.— 
"(1) ANNUAL REPORT REQUIRED.—The President shall, no later 
than April 30, 1990, and annually on April 30 thereafter, submit 
to the appropriate committees of the House of Representatives 
and the (Committee on Governmental Affairs of the Senate, as 
well as other appropriate Senate committees, a report on the 
extent to which foreign countries discriminate against United 
States products or services in making government procure-
ments. 
"(2) IDENTIFICATIONS REQUIRED.—In the annual report, the 
President shall identify (and continue to identify subject to 
subsections (f)(5) and (g)(3)) any countries, other than least 
developed countries, that— 
"(A) are signatories to the Agreement and not in compli-
ance with the requirements of the Agreement; 
"(B)(i) are signatories to the Agreement; (ii) are in compli-
ance with the Agreement but, in the government procure-
ment of products or services not covered by the Agreement, 
maintain a significant and persistent pattern or practice of 
discrimination against United States products or services 
which results in identifiable harm to United States 
businesses; and (iii) whose products or services are acquired 
in significant amounts by the United States Government; or 
"(C)(i) are not signatories to the Agreement; (ii) maintain, 
in government procurement, a significant and persistent 
pattern or practice of discrimination against United States 
products or services which results in identifiable harm to 
United States businesses; and (iii) whose products or serv-
ices are acquired in significant amounts by the United 
States Government. 
"(3) CONSIDERATIONS IN MAKING IDENTIFICATIONS.—In making 
the identifications required by paragraph (1), the President 
shall— 
"(A) use the requirements of the Agreement, government 
procurement practices, and the effects of such practices on 
United States businesses as a basis for evaluating whether 
the procurement practices of foreign governments do not 
provide fair market opportunities for United States prod-
ucts or services; 
"(B) take into account, among other factors, whether and 
' to what extent countries that are signatories to the Agree-
ment, and other countries described in paragraph (1) of this 
subsection— 
"(i) use sole-sourcing or otherwise noncompetitive 
procedures for procurements that could have been con-
ducted using competitive procedures; 
"(ii) conduct what normally would have been one 
procurement as two or more procurements, to decrease 
the anticipated contract values below the Agreement's 
value threshold or to make the procurements less 
attractive to United States businesses; 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1549 
"(iii) announce procurement opportunities with inad-
equate time intervals for United States businesses to 
submit bids; and 
"(iv) use specifications in such a way as to limit the 
1- 
ability of United States suppliers to participate in 
procurements; and 
"(C) 
use 
any 
other 
additional 
criteria 
deemed 
appropriate. 
"(4) CONTENTS OF REPORTS.—The reports required by this 
subsection shall include, with respect to each country identified 
under subparsigraph (A), (B), or (C) of paragraph (1), the 
following: 
"(A) a description of the specific nature of the discrimina-
tion, including (for signatory countries) any provision of the 
Agreement with which the country is not in compliance; 
"(B) an identification of the United States products or 
services that are affected by the noncompliance or 
discrimination; 
"(C) an analysis of the impact of the noncompliance or 
discrimination on the commerce of the United States and 
the ability of United States companies to compete in foreign 
government procurement markets; and 
"(D) a description of the status, action taken, and disposi-
tion of cases of noncompliance or discrimination identified 
in the preceding annual report with respect to such 
country. 
"(5) INFORMATION AND ADVICE FROM GOVERNMENT AGENCIES 
AND UNITED STATES BUSINESSES.—In developing the annual re-
ports required by this subsection, the President shall seek 
information and advice from executive agencies through the 
interagency trade organization established under section 242(a) 
of the Trade Expansion Act of 1962, and from United States 
businesses in the United States and in countries that are sig-
natories to the Agreement and in other foreign countries whose 
products or services are acquired in significant £imounts by the 
United States Government. 
"(6) IMPACT OF NONCOMPUANCE.—The President shall take 
into account, in identif3dng countries in the annual report and 
in any action required by this section, the relative impact of any 
noncompliance with the Agreement or of other discrimination 
on United States commerce and the extent to which such 
noncompliance or discrimination has impeded the ability of 
United States suppliers to participate in procurements on terms 
comparable to those available to suppliers of the country in 
question when seeking to sell goods or services to the United 
States Government. 
"(7) IMPACT ON PROCUREMENT COSTS.—Such report shall also 
include an analysis of the impact on United States Government 
procurement costs that may occur as a consequence of any 
sanctions that may be required by subsection (f) or (g) of th^ 
section. 
"(e) CONSULTATION.—No later than the date the annual report is 
submitted under subsection (dXD, the United States Trade Rep-
resentative, on behalf of the United States, shall request consulta-
tions with any countries identified in the report to obtain their 
compliance with the Agreement or the elimination of their discrimi-
natory procurement practices unless the country is identified as 
19-194 O—91—Part 2 
18 : OI. 3 
102 STAT. 1550 
PUBLIC LAW 100-418—AUG. 23, 1988 
discriminatory pursuant to section 305(dXl) in the preceding annual 
report. 
"(f) 
PROCEDURES 
WITH 
RESPECT 
TO 
VIOLATIONS 
OF 
THE 
AGREEMENT.— 
"(1) 
INITIATION OF DISPUTE SETTLEMENT PROCEDURES.—If, 
within 60 days after the annual report is submitted under 
subsection (dXD, a signatory country identified pursuant to 
subsection (dXlXA) has not complied with the Agreement, then 
the United States Trade Representative shall promptly request 
proceedings on the matter under the formal dispute settlement 
procedures provided under the Agreement unless such proceed-
ings are already underway pursuant to the identification of the 
signatory country under section 305(dXl) as not in compliance 
in a preceding annual report. 
"(2) SETTLEMENT OF DISPUTES.—If, before the end of a year 
following the initiation of dispute settlement procedures— 
"(A) the other participant to the dispute settlement 
procedures has complied with the Agreement, 
"(B) the other participant to the procedures takes the 
action recommended as a result of the procedures to the 
satisfaction of the President, or 
"(C) the procedures result in a determination requiring 
no action by the other participant, 
the President shall take no action to limit Grovemment procure-
ment from that participant. 
"(3) SANCTIONS AFTER FAILURE OF DISPUTE RESOLUTION.—If the 
dispute settlement procedures initiated pursuant to this subsec-
tion with any signatory country to the Agreement are not 
concluded within one year from their initiation or the country 
has not met the requirements of paragraph (2XA) or (2)(B), 
then— 
"(A) from the end of such one year period, such signatory 
country shall be considered as a signatory not in good 
standing of the Agreement and the prohibition on procure-
ment contained in section 4 of the Act of March 3, 1933, 
shall apply to such country; and 
"(B) on the day after the end of such one year period, the 
President shall revoke the waiver of discriminatory 
purchasing requirements granted to that signatory country 
pursuant to section 301(a) of this Act. 
"(4) WITHHOLDING AND MODIFICATION OF SANCTIONS.—If the 
President determines that imposing or continuing the sanctions 
required by subparagraph (A) or (B) of paragraph (3) would 
harm the public interest of the United States, the President 
may, to the extent necessary to apply appropriate limitations 
that are equivalent, in their effect, to the noncompliance with 
the Agreement by that signatory country— 
"(A) withhold the imposition of either (but not both) of 
such sanctions; 
"(B) modify or restrict the application of either or both 
such sanctions, subject to such terms and conditions as the 
President considers appropriate; or 
"(C) take any combination of the actions permitted by 
subparagraph (A) or (B) of this paragraph. 
"(5) 
TERMINATION OF SANCTIONS AND REINSTATEMENT OF 
WAIVERS.—The President may terminate the sanctions imposed 
under paragraph (3) or (4), reinstate the waiver of discrimina-
•»iy-««, -vy^l^i^^^ 
-»'=r-^ ^-.f^lZ?' 
PUBLIC LAW 100-418-AUG. 23, 1988 
102 STAT. 1551 
tory purchasing requirements granted to that signatory country 
pursuant to section 301(a) of this Act, and remove that country 
from the report under subsection (d)(1) of this section at such 
time as the President determines that— 
"(A) the signatory country has compUed with the 
Agreement; 
"(B) the signatory country has taken corrective action as 
a result of the dispute settlement procedures to the satisfac-
tion of the President; or 
"(C) the dispute settlement procedures result in a 
determination requiring no action by the other signatory 
country. 
"(g) PROCEDURES WITH RESPECT TO OTHER DISCRIMINATION.— 
"(1) IMPOSITION OF SANCTIONS.—If, within 60 days after the 
annual report is submitted under subsection (d)(1), a country 
that is identified pursuant to subparagraph (B) or (C) of such 
subsection has not eliminated their discriminatory procurement 
practices, then, on the day after the end of such 60-day period— 
"(A) the President shall identify such country as a coun-
try that maintains, in government procurement, a signifi-
cant and persistent pattern or practice of discrimination 
against United States products or services which results in 
identifiable harm to United States businesses; and 
"(B) the prohibition on procurement contained in section 
4 of the Act of March 3, 1933, shall apply to such country. 
"(2) WITHHOLDING AND MODIFICATION OF SANCTIONS.—If the 
President determines that imposing or continuing the sanction 
required by paragraph (1) would harm the public interest of the 
United States, the President may, to the extent necessary to 
impose appropriate limitations that are equivalent, in their 
effect, to the discrimination against United States products or 
services in government procurement by that country, modify or 
restrict the application of such sanction, subject to such terms 
and conditions as the President considers appropriate. 
"(3) TERMINATION OF SANCTIONS.—The President may termi-
nate the sanctions imposed under paragraph (1) or (2) and 
remove a country from the report under subsection (d)(1) at such 
time as the President determines that the country has elimi-
nated the discrimination identified pursuant to subsection (d)(2) 
(B) or (C). 
"(h) LIMITATIONS ON IMPOSING SANCTIONS.— 
"(1) AVOIDING ADVERSE IMPACT ON COMPETITION.—The Presi-
dent shall not take any action under subsection (f) or (g) of this 
section if the President determines that such action— 
"(A) would limit the procurement or class of procure-
ments to, or would establish a preference for, the products 
or services of a single manufacturer or supplier; or 
"(B) would, with respect to any procurement or class of 
procurements, result in an insufficient number of potential 
or actual bidders to assure procurement of services, articles, 
materials, or supplies of requisite quality at competitive 
prices. 
"(2) ADVICE FROM U.S. AGENCIES AND BUSINESSES.—The Presi-
dent, in taking any action under this subsection to limit govern-
ment procurements from foreign countries, shall seek the 
advice of executive agencies through the interagency trade 
organization established under section 242(a) of the Trade 
102 STAT. 1552 
PUBLIC LAW 100-418—AUG. 23, 1988 
Expansion Act of 1962 and the advice of United States 
businesses and other interested parties, 
"(i) RENEGOTIATION TO SECURE FULL AND OPEN COMPETITION.— 
The President shall instruct the United States Trade Representa-
tive, in conducting renegotiations of the Agreement, to seek 
improvements in the Agreement that will secure full and open 
competition consistent with the requirements imposed by the 
amendments made by the Competition in Contracting Act (Public 
Law 98-369; 98 Stat. 1175). 
"(j) FEDERAL REGISTER NOTICES OF ACTIONS.— 
"(1) NOTICES REQUIRED.—A notice shall be published in the 
Federal Register on the date of any action under this section, 
describing— 
"(A) the results of dispute settlement proceedings under 
subsection (fK2); 
"(B) any sanction imposed under subsection (fK3) or (gXD; 
"(C) any withholding, modification, or restriction of any 
sanction under subsection (fK4) or (gX2); and 
"(D) the termination of any sanction under subsection 
(fX5)or(gX3). 
"(2) PUBUCATION OF DETERMINATIONS UFTING SANCTIONS.—A 
notice describing the termination of any sanction under subsec-
tion (fK5) or (gX3) shall include a copy of the President's deter-
mination under such subsection. 
"(k) GENERAL REPORT ON ACTIONS UNDER THIS SECTION.— 
"(1) ADVICE TO THE CONGRESS.—The President shall, as nec-
essary, advise the C!ongress and, by no later than April 30, 1994, 
submit to the the appropriate committees of the House of 
Representatives, and to the Clommittee on Governmental Af-
fairs and other appropriate committees of the Senate, a general 
report on actions taken pursuant to this section. 
"(2) (CONTENTS OF REPORT.—The general report required by 
this subsection shall include an evaluation of the adequacy and 
effectiveness of actions taken pursusmt to subsections (e), (f), 
and (g) of this section as a means toward eliminating discrimi-
natory government procurement practices against United 
States businesses. 
"(3) LEGISLATIVE RECOMMENDATIONS.—The general report may 
also include, if appropriate, legislative recommendations for 
enhancing the usefulness of this section or for other measures to 
be used as means for eliminating or responding to discrimina-
tory foreign government procurement practices.". 
41 u s e lOa note. 
SEC. 7004. SUNSET PROVISION. 
The amendments made by this title shall cease to be effective on 
April 30, 1996, unless the Congress, after reviewing the report 
required by section 305(k) of the Trade Agreements Act of 1979, and 
other relevant information, extends such date. After such date, the 
President may modify or terminate any or all actions taken pursu-
ant to such amendments. 
SEC. 7005. CONFORMING AMENDMENTS. 
(a) DEFINITION OF FEDERAL AGENCY.—The first section of the Act 
of March 3,1933 (41 U.S.C. 10c), is amended— 
(1) by striking out the period at the end of paragraph (b) and 
inserting a semicolon; and 
(2) by adding at the end thereof the following: 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1553 
"(c) The term 'Federal agency' has the meaning given such term 
by section 3 of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C 472), which includes the Departments of the 
Army, Navy, and Air Force. 
(b) AMENDMENTS TO SECTION 2.—Section 2 of such Act (41 U.S.C. 
10a) is amended by striking out "department or independent 
establishment" and inserting "Federal £^ency". 
(c) AMENDMENTS TO SECTION 3.—Section 3 of such Act (41 U.S.C. 
10b) is amended— 
(1) by striking out "department or independent establish-
ment" in such subsection and inserting "Federal agency"; and 
(2) by striking out "department, bureau, agency, or independ-
ent establishment" in subsection 0)) and inserting "Federal 
agency". 
(d) ADDITIONAL (DONFORMING AMENDMENTS.—Section 633 of 
the 
Act of October 29, 1949 (41 U.S.C. lOd) is amended by striking out 
"department or independent establishment" and inserting "Federal 
agency". 
(e) SECTION 301 WAIVER AUTHORITY.—Section 301 of the Trade 
Agreements Act of 1979 is amended by adding at the end thereof the 
following: 
"(d) LIMITATIONS ON WAIVER AUTHORITY NOT EFFECTIVE UNLESS 
PROVISION AMENDED.—The authority of the President under subsec-
tion (a) to waive any laws, regulation, procedure, or practice shall be 
effective notwithstanding any other provision of law heregifter en-
acted (excluding the provisions of and amendments made by the Buy 
American Act of 1988) unless such other provision specifically refers 
to and amends this section.". 
(f) EFFECTIVE DATE.—The amendments made by this section shall 
take effect upon enactment. 
19 u s e 2511. 
41 u s e 10a note. 
TITLE VIII—SMALL BUSINESS 
SEC. 8001. SHORT TITLE. 
This title may be cited £is the "Small Business International Trade 
£md Competitiveness Act". 
SEC. 8002. DECLARATION OF POLICY. 
Section 2 of the Small Business Act (15 U.S.C. 631) is amended by 
redesignating subsections (b) through (e) as subsections (c) through 
(f), respectively, and by inserting after subsection (a) the following: 
"(bXD It is the declared policy of the Congress that the Federal 
Government, through the Small Business Administration, acting in 
cooperation with the Department of Commerce and other relevant 
State and Federal agencies, should aid and assist small businesses, 
as defined under tins Act, to increase their ability to compete in 
international markets by— 
"(A) enhancing their ability to export; 
"(B) facilitating technology transfers; 
"(C) enhancing their ability to compete effectively and effi-
ciently against imports; 
"(D) increasing the access of small businesses to long-term 
capital for the purchase of new plant and equipment used in the 
production of goods and services involved in international trade; 
Small Business 
International 
Trade and 
eompetitiveness 
Act 
15 use 631 note. 
102 STAT. 1554 
PUBLIC LAW 100-418—AUG. 23, 1988 
"(E) disseminating information concerning State, Federal, 
and private programs and initiatives to enhance the ability of 
small businesses to compete in intemationsd markets; and 
"(F) ensuring that the interests of small businesses are 
adequately represented in bilateral and multilatersd trade 
negotiations. 
"(2) The Congress recognizes that the Department of (Commerce is 
the principal Federal agency for trade development and export 
promotion and that the Department of (Commerce and the Small 
Business Administration work t(^ether to advance joint interests. It 
is the purpose of this Act to enhance, not alter, their respective 
roles.". 
SEC. 8003. CHANGES IN EXISTING SMALL BUSINESS ADMINISTRATION 
INTERNATIONAL TRADE OFFICE. 
Section 22 of the Small Business Act (15 U.S.C. 649) is amended— 
(1) by redesignating subsection (b) as subsection (c) and by 
inserting after subsection (a) the following: 
V 
"(b) The Office, working in close cooperation with the Department 
of Commerce and other relevant Federal agencies, Small Business 
Development Ctenters engaged in export promotion efforts, regional 
and local Administration offices, the small business community, and 
relevant State and local export promotion programs, shall— 
"(1) assist in developing a distribution network for existing 
trade promotion, trade finance, trade adjustment, trade remedy 
assistance and trade data collection programs through use of 
the Administration's r ^ o n a l and local offices and the Small 
Business Development CJenter network; 
Marketing. 
"(2) assist in the aggressive marketing of these programs and 
the dissemination of marketing information, including comput-
erized marketing data, to the small business community; and 
"(3) give preference in hiring or approving the transfer of any 
employee into the Office or to a position described in paragraph 
(8) below to otherwise qualified applicants who are fluent in a 
language in addition to English. Such employees shall accom-
pany foreign trade missions if designated by the director of the 
Office and shall be available as needed to translate documents, 
interpret conversations and facilitate multilingual transactions 
including providing referral lists for translation services if 
required."; 
(2) in subsection (c), as redesignated, by redesignating para-
graphs (1) through (3) as (6) through (8), respectively, and by 
inserting the following before paragraph (6), as redesignated: 
"(1) in cooperation with the Department of Commerce, other 
relevant agencies, regional and local Administration offices, the 
Small Business Development (CJenter network, and State pro-
grams, develop a mechanism for (A) identifying sub-sectors of 
the small business community with strong export potential; (B) 
identifying 
areas 
of 
demand 
in 
foreign 
markets; 
(C) 
prescreening foreign buyers for commercial and credit purposes; 
and (D) assisting in increasing international marketing by 
disseminating relevant information regarding market leads, 
linking potential sellers and buyers, and catalyzing the forma-
tion of 
joint ventures, where appropriate; 
"(2) in cooperation with the Department of CJommerce, ac-
tively assist small businesses in the formation and utilization of 
export trading companies, export management companies and 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1555 
Public 
information. 
research and development pools authorized under section 9 of 
this Act; 
"(3) work in conjunction with other Federal agencies, regional 
Schools and 
and local offices of the Administration, the Small Business colleges. 
Development Center network, and the private sector to identify 
and publicize existing translation services, including those 
available through colleges and universities participating in the 
Small Business Development Center Program; 
"(4) work closely with the Department of Commerce and other 
relevant Federal agencies to— 
"(A) collect, analyze and periodically update relevant 
data regarding the small business share of United States 
exports and the nature of State exports (including the 
production of Gross State Produce figures) and disseminate 
that data to the public and to Congress; 
"(B) make recommendations to the Secretary of Com-
merce and to Congress regarding revision of the SIC codes 
to encompass industries currently overlooked and to create 
SIC codes for export trading companies and export manage-
ment companies; 
"(C) improve the utility and accessibility of existing 
export promotion programs for small businesses; and 
"(D) increase the accessibility of the Export Trading Com-
pany contact facilitation service; 
"(5) make available to the small business community informa-
tion regarding conferences on exporting and international trade 
sponsored by the public and private sector."; and 
(3) by adding after subsection (c), as redesignated, the follow-
ing new subsections: 
"(d) The Office shall work in cooperation with the Export-Import 
Bank of the United States, the Department of Commerce, other 
relevant Federal agencies, and the States to develop a program 
through which export specialists in the regional offices of the 
Administration, regional and local loan officers, and Small Business 
Development Center personnel can facilitate the access of small 
businesses to relevant export financing programs of the Export-
Import Bank of the United States and to export and pre-export 
financing programs available from the Administration and the pri-
vate sector. To accomplish this goal, the Office shall wotk in co-
operation with the Export-Import Bank and the small business 
community, including small business trade associations, to— 
"(1) aggressively market existing Administration export Marketing. 
financing and pre-export 
finsincing 
programs; 
"(2) identify finsincing available under various Export-Import 
Bank programs, and aggressively market those programs to 
small businesses; 
"(3) assist in the development of financial intermediaries and 
facilitate the access of those intermediaries to existing financing 
programs; 
"(4) promote greater participation by private financial institu-
tions, particularly those institutions already participating in 
loan programs under this Act, in export finance; and 
"(5) provide for the participation of appropriate Administra-
tion personnel in training programs conducted by the Export-
Import Bank. 
"(e) "Hie Office shall— 
102 STAT. 1556 
PUBLIC LAW 100-418—AUG. 23, 1988 
Reports. 
Reports. 
15 use 631 note. 
"(1) work in cooperation with other Federal agencies and the 
private sector to counsel small businesses with respect to initiat-
ing and participating in any proceedings relating to the 
administration of the United States trade laws; and 
"(2) work with the Department of Commerce, the Office of the 
United States Trade Representative, and the International 
Trade Commission to increase access to trade remedy proceed-
ings for small businesses. 
"(f) The Office shall report to the Committees on Small Business 
of the House of Representatives and the Senate on an annual basis 
as to its progress in implementing the requirements under this 
section. 
"(g) The Office, in cooperation, where appropriate, with the Divi-
sion of Economic Research of the Office of Advocacy, and with other 
Federal agencies, shall undertake studies regarding the following 
issues and shall report to the Committees on Small Business of the 
House of Representatives and the Senate, and to other relevant 
Committees of the House and Senate within 6 months after the date 
of enactment of the Small Business International Trade and 
Competitiveness Act with specific recommendations on— 
"(1) the viability and cost of establishing an annual, competi-
tive small business export incentive program similar to the 
Small Business Innovation Research program and alternative 
methods of structuring such a program; 
"(2) methods of streamlining trade remedy proceedings to 
increase access for, and reduce expenses incurred by, smaller 
firms; 
"(3) methods of improving the current small business foreign 
sales corporation tax incentives and providing small businesses 
with greater benefits from this initiative; 
"(4) methods of identifying potential export markets for 
United States small businesses; maintaining and disseminating 
current foreign market data; and devising a comprehensive 
export marketing strategy for United States small business 
goods and services, and shall include data on the volume and 
dollar amount of goods and services, identified by type, im-
ported by United States trading partners over the past 10 years; 
and 
"(5) the results of a survey of major United States trading 
partners to identify the domestic policies, programs and incen-
tives, and the private sector initiatives, which exist to encour-
age the formation and growth of small business.". 
SEC. 8004. AUTHORIZATION OF APPROPRIATIONS. 
Section 20 of the Small Business Act (15 U.S.C. 631) is amended by 
adding the following at the end of subsection (z): "There are hereby 
authorized to be appropriated to the Administration for each of 
fiscal years 1988 and 1989, $3,500,000 to carry out the provisions of 
section 22 of this Act and section 8011 of the Small Business 
International Trade and Competitiveness Act, of which $350,000 is 
authorized to reimburse volunteers in the Service Corps of Retired 
Executives for their expenses in performing on-site counseling to 
actual or potential small business exporters, in participating in 
training sessions for such small businesses, and in preparing mate-
rials for use at such training sessions or during counseling.". 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1557 
SEC. 8005. EXPORT FINANCING PROVIDED BY THE ADMINISTRATION. 
Section 7(aX14) of the Small Business Act (15 U.S.C. 636(aX14)) is 
amended to read as follows: 
"(14XA) The Administration under this subsection may pro-
vide extensions cmd revolving lines of credit for export purposes 
and for pre-export financing to enable small business concerns, 
including small business export trading companies and small 
business export management companies, to develop foreign 
markets. No such extension or revolving line of credit may be 
made for a period or periods exceeding 18 months. A bank or 
participating lending institution may establish the rate of in-
terest on extensions and revolving lines of credit as may be leged 
and reasonable. 
"(B) When considering loan or guarantee applications, the 
Administration shall give weight to export-related benefits, 
including opening new markets for United States goods and 
services abroad and encouraging the involvement of smsdl 
businesses, including agricultural concerns, in the export 
market. 
"(C) The Administration shall aggressively market its export 
financing program to small businesses.". 
SEC. 8006. SMALL BUSINESS DEVELOPMENT CENTERS. 
(a) AUTHORIZATION OP APPROPRIATION.—Section 20 of the Smsill 
Business Act (15 U.S.C. 631 note) is amended by adding the following 
at the end of subsection (z): "There are hereby authorized to be 
appropriated to the Administration for each of the fiscal years 1988 
and 1989, $5,000,000 to carry out the provisions of section 21(aX6).". 
(b) SBDC INFORMATION DISSEMINATION AND SERVICE DELIVERY.— 
Section 21 of the Small Business Act (15 U.S.C. 648) is amended— 
(1) in subsection (aXD, by inserting after "enterprises;" the 
following: "management and technical assistance regarding 
small business participation in international markets, export 
promotion and technology transfer;"; 
(2) in subsection (a), by redesignating paragraphs (2) through 
(4) as paragraphs (3) through (5), respectively, and by inserting 
the following after paragraph (1): 
"(2) The Small Business Development Centers shall work in 
close cooperation with the Administration's regional and local 
offices, the Department of Commerce, appropriate Federal, 
State and local agencies and the small business community to 
serve as an active information dissemination and service deliv-
ery mechanism for existing trade promotion, trade finance, 
trade adjustment, trade remedy and trade data collection pro-
grams of particular utility for small businesses."; 
(3) by adding at the end of subsection (a) the following new 
paragraph: 
"(6) Any applicant which is funded by the Administration as a 
Small Business Development (Denter may apply for an addi-
tional grant to be used solely to assist— 
'(A) with the development and enhancement of exports 
by small business concerns; and 
"(B) in technology transfer, 
as provided under subparagraphs (B) through (G) of subsection 
(cX3). Applicants for such additional grants shall comply with 
all of the provisions of this section, including providing match-
ing funds, except that funding under this paragraph shall be 
Banks and 
banking. 
Loans. 
Grants. 
102 STAT. 1558 
PUBLIC LAW 100-418—AUG. 23, 1988 
effective for any fiscal year to the extent provided in advance in 
appropriations Acts and shall be in addition to the dollar pro-
gram limitations specified in paragraphs (4) and (5). No recipi-
ent of funds under this parsigraph shall receive a grant which 
would exceed its pro rata share of a $15,000,000 program based 
upon the populations to be served by the Small Business Devel-
opment Center as compared to the total population of the 
State and local 
United States. The minimum amount of eligibility for any State 
governments. 
shall be $100,000."; 
(4) in subsection (cX3), by striking subparagraph (B) and by 
inserting the following new subparagraph (B): 
Research and 
"(B) assisting in technology transfer, research and devel-
development. 
opment, including applied research, and coupling from 
existing sources to small businesses, including— 
"(i) working to increeise the access of small businesses 
to the capabilities of automated flexible manufacturing 
systems; 
"(ii) working through existing networks and develop-
ing new networks for technology transfer that encour-
, 
age partnership between the small business and 
academic communities to help commercialize univer-
sity-based research and development and introduce 
university-based engineers and scientists to their 
counterparts in small technology-based firms; and 
"(iii) exploring the viability of developing shared 
production 
facilities, 
under 
appropriate 
circumstances;"; 
(5) in subsection (c)(3), by redesignating subparagraphs (C) 
through (H) as subparagraphs (H) through (M), respectively, and 
by inserting the following new subparagraphs after subpara-
graph (B): 
"(C) in cooperation with the Department of Commerce 
and other relevant Federal agencies, actively assisting 
small businesses in exporting by identif3dng and developing 
potential export markets, facilitating export transactions, 
developing linkages between United States small business 
firms and prescreened foreign buyers, assisting small 
businesses to participate in international trade shows, 
assisting small businesses in obtaining export financing, 
and facilitating the development or reorientation of 
State and local 
marketing and production strategies; where appropriate, 
governments. 
the Small Business Development Center may work in co-
operation with the State to establish a State international 
trade center for these purposes; 
Marketing. 
"(D) assisting small businesses in developing and im-
plementing marketing and production strategies that will 
enable them to better compete within the domestic market; 
"(E) developing a program in conjunction with the 
Export-Import Bank and local and regional Administration 
offices that will enable Small Business Development Cen-
ters to serve as an information network and to assist smsdl 
business applicants for Export-Import Bank financing pro-
grams, and otherwise identify and help to make available 
export financing programs to small businesses; 
(F) working closely with the small business community, 
small business consultants. State agencies, universities and 
other appropriate groups to make translation services more 
Grants. 
•'.'^t'-rfe'^-O-x-' •^|5y»;s«^.-
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1559 
readily available to small business firms doing business, or 
attempting to develop business, in foreign markets; 
"(G) in providing assistance under this subsection, ap-
plicants shall cooperate with the Department of Commerce 
and other relevant Federal agencies to increase access to 
available export market information systems, including the 
CIMS system;"; 
(6) in subsection (c), by adding the following new paragraphs: 
"(5) In any State (A) in which the Administration has not State and local 
made a grant pursuant to paragraph (1) of subsection (a), or (B) ^Jl^""®"*®' 
in which no application for a grant has been made by a Small 
"°" ° 
Business Development Center pursuant to paragraph (6) of such 
subsection within 60 days after the effective date of any grant 
under paragraph (a)(1) to such center, the Administration may 
make grants to a non-profit entity in that State to carry out the 
activities specified in paragraph (6) of subsection (a). Any such 
applicants shall comply with the matching funds requirement of 
paragraph (4) of subsection (a). Such grants shall be effective for 
any fiscal year only to the extent provided in advance in 
appropriations Acts, and each State shall be limited to the pro 
rata share provisions of paragraph (6) of subsection (a). 
"(6) In performing the services identified in paragraph (3), the 
Small Business Development Centers shall work in close co-
operation with the Administration's regional and local offices, 
the local small business community, and appropriate State and 
local agencies. 
"(7) The Deputy Associate Administrator of the Small Busi-
ness Development Center program, in consultation with the 
Small Business Development Centers, shall develop and imple-
ment an information sharing system which will— 
"(A) allow Small Business Development Centers partici-
pating in the program to exchange information about their 
programs; and 
"(B) provide information central to technology transfer."; 
and 
(7) by redesignating subsections (d) through (k) as subsections 
(e) through (1), respectively, and inserting the following new 
subsection after subsection (c): 
"(d) Where appropriate, the Small Business Development Centers 
shall work in conjunction with the relevant State agency and the 
Department of Commerce to develop a comprehensive plan for 
enhancing the export potential of small businesses located within 
the State. This plan may involve the cofunding and staffing of a 
State Office of International Trade within the State Small Business 
Development Center, using joint State and Federal funding, and any 
other appropriate measures directed at improving the export 
performance of small businesses within the State.". 
SEC. 8007. CAPITAL FORMATION. 
(a) LOAN LIMITATIONS.—Section 7(a) of the Small Business Act (15 
U.S.C. 636(a)) is amended— 
(1) by striking "and" at the end of clause (i) of paragraph 
(2)(B) and by adding after clause (ii) the following new clauses: 
"(iii) not less than 85 per centum of the financing 
outstanding at the time of disbursement if such financing is 
a loan under paragraph (16) and is less than $1,176,470; and 
102 STAT. 1560 
PUBLIC LAW 100-418—AUG. 23, 1988 
Banks 
and 
banking. 
Banks 
and 
banking. 
"(iv) less than 85 per centum of the financmg outstanding 
at the time of disbursement if such financing is a loan 
under pareigraph (16) and exceeds $1,176,470;"; 
(2) by amending paragraph (3) to read as follows: 
"(3) No loan shall be made under this subsection— 
"(A) if the total amount outstanding and committed (by 
participation or otherwise) to the borrower from the busi-
ness loan and investment fund established by this Act 
would exceed $750,000, except as provided in subparagraph 
(B); 
"(B) if the total amount outstanding and committed (on a 
deferred basis) solely for the purposes provided in para-
graph (16) to the borrower from the business loan and 
investment fund established by this Act would exceed 
$1,000,000, such amount to be in addition to any financing 
solely for working capital, supplies, or revolving lines of 
credit for export purposes up to a maximum of $250,000; 
and 
"(C) if effected either directly or in cooperation with 
banks or other lending institutions through agreements to 
participate on an immediate basis if the amount would 
exceed $350,000."; 
(3) by adding the following new paragraphs after paragraph 
(15): 
"(16XA) The Administration may guarantee loans under this 
paragraph to assist any eligible small business concern in an 
industry engaged in or adversely affected by international trade 
in the financing of the acquisition, construction, renovation, 
modernization, improvement or expansion of productive facili-
ties or equipment to be used in the UnitcKi States in the 
production of goods and services involved in international trade, 
if the Administration determines that the appropriate upgrad-
ing of plant and equipment will allow the concern to improve its 
competitive position. Each such loan shall be secured by a first 
lien position or first mortgage on the property or equipment 
financed by the loan. The lender shall agree to sell the loan in 
the secondary market as authorized in sections 5(f) and 5(g) of 
this Act within 180 days of the date of disbursement. 
"(B) A small business concern shall be considered to be en-
gaged in or adversely affected by international trade for pur-
poses of this provision if such concern is, as determined by the 
Administration in accordance with regulations that it shsdl 
develop— 
"(i) in a position to significantly expand existing export 
markets or develop new export markets; or 
"(ii) adversely affected by import competition in that it 
is— 
"(I) confronting increased direct competition with 
foreign firms in the relevant market; and 
"(II) can demonstrate injury attributable to such 
competition. 
"(17) The Administration shall authorize lending institutions 
and other entities in addition to banks to make loans authorized 
under this subsection."; and 
(4) by redesignating the existing paragraph (16) as paragraph 
(18). 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1561 
(b) DEVELOPMENT COMPANY LIMITS.—Section 502(2) of the Small 
Business Investment Act of 1985 (15 U.S.C. 636(a)(3)) is amended by 
striking "$500,000" and by inserting in lieu thereof "$750,000'^ 
(c) REPORT.—The Administrator of the Small Business Adminis-
tration shall report to the Committees on Small Business of the 
House of Representatives and the Senate within 6 months after the 
date of enactment of this title as to the viability of creating coopera-
tive Federal-State guarantee programs, particularly for purposes of 
export financing, to encourage States to coinsure Federal loans, thus 
permitting the Federal Government to reduce its exposure. 
SEC. 8008. SMALL BUSINESS INNOVATION RESEARCH. 
Section 6 of Public Law 97-219, as amended by Public Law 99-443, 
is further amended by adding the following at the end of subsection 
(a): "The report also shall include the Comptroller General's rec-
ommendations as to the advisability of amending the Small Business 
Innovation Research program to— 
"(1) increase each agency's share of research and development 
expenditures devoted to it by 0.25 per centum per year, until it 
is 3 per centum of the total extramural research and develop-
ment funds, and targeting a portion of the increment at prod-
ucts with commercialization or export potential; 
"(2) make the Small Business Innovation Research program 
permanent with a formal congressional review every 10 years, 
beginning in 1993; 
"(3) allocate a modest but appropriate share of each agency's 
Small Business Innovation Research fund for administrative 
purposes for effective management, quality maintenance, and 
the elimination of program delays; and 
"(4) include within the Small Business Innovation and Re-
search program all agencies expending between $20,000,000 and 
$100,000,000 in extramural research and development funds 
annually.". 
SEC. 8009. GLOBALIZATION OF PRODUCTION. 
Within one year after the date of enactment of this Act, the 
Administrator of the Small Business Administration shall submit a 
written report to the Committees on Small Business of the House of 
Representatives and the Senate, prepared by the Administration in 
conjunction with the Bureau of Census and in cooperation with 
other relevant Eigencies, that would— 
(1) analyze to the extent possible the effect of increased 
outsourcing and other shifts in production arrangements on 
small firms, particularly manufacturing firms, within the 
United States subcontractor tier and to the extent that such 
data is not available determine methods by which such data 
may be collected; 
(2) assess the impact of specific economic policies, including, 
but not limited to, procurement, tax and trade policies, in 
facilitating outsourcing and other international production 
arrangements; and 
(3) make recommendations as to changes in Government 
policy that would improve the competitive position of smaller 
United States subcontractors, including recommendations as to 
incentives which could be provided to larger corporations to 
maximize their use of United States subcontractors and assist 
these subcontractors in changing production and marketing 
15 u s e 696. 
State and local 
governments. 
Loans. 
15 use 638 note. 
Reports. 
Reports. 
15 use 631 note. 
102 STAT. 1562 
PUBLIC LAW 100-418—AUG. 23, 1988 
s t r a t ^ e s and in obtaining new business in domestic and for-
eign markets. 
Reports. 
SEC. 8010. SMALL BUSINESS TRADE REMEDY ASSISTANCE. 
Not later than December 1, 1988, the Comptroller General of the 
United States shall conduct a study and submit a report to the 
Committee on Governmental Affairs and the Committee on Small 
Business of the Senate, as well as to other appropriate committees of 
the Senate, and to the Committee on Small Business and the 
Committee on Waj^ and Means of the House of Representatives on 
the costs incurred by small businesses in pursuing rights and rem-
edies under the trade laws. Such report shall include an analysis 
of— 
(1) the costs incurred by small businesses (and trade associa-
tions whose membership is primarily small business) in 
pursuing 
investigations 
under 
the 
trade 
remedy 
laws, 
including— 
(A) antidumping investigations and proceedings under 
title Vn of the Tariff Act of 1930; 
(B) countervailing duty investigations and proceedings 
under section 303 or title VII of the Tariff Act of 1930; 
(C) unfair trade practice investigations under section 337 
of the Tariff Act of 1930; 
(D) investigations under chapter 1 of title i n of the Tariff 
Act of 1974; 
(E) import relief investigations under chapter 1 of title II 
of the Trade Act of 1974; 
(F) market disruption investigations under section 406 of 
the Trade Act of 1974; and 
(G) national security relief investigations under section 
232 of the Trade Expansion Act of 1962; 
(2) the extent of assistance and information provided by the 
Trade Remedy Assistance Office of the United States Inter-
national Trade Commission; 
(3) the ability of small businesses to generate the information 
and resources needed for such investigations; and 
(4) the costs and benefits to the Federal Grovemment of 
either— 
(A) providing reimbursement to small businesses for legsd 
expenses incurred in pursuing trade remedies; or 
(B) providing direct legal assistance to small businesses. 
15 use 631 note. 
SEC. 8011. NATIONAL SEMINAR ON SMALL BUSINESS EXPORTS. 
(a) SEMINAR.—The Administration shall conduct a National Semi-
nar on Small Business Exports within one year following enactment 
of this Act in order to develop recommendations designed to stimu-
late exports from small companies. The Seminar shall build upon 
the information collected by the Administration through previously 
conducted regional small business trade conferences. 
Ot)) ASSISTANCE BY EXPERTS.—For the purpose of ascertaining facts 
and developing poUcy recommendations concerning the expansion of 
United States exports from small companies the Seminar shall bring 
t(^ether individuals who are experts in the fields of intemationed 
trade and small business development and representatives of small 
businesses, associations, the labor community, academic institu-
tions, and Federal, State and local governments. 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1563 
(c) RECOMMENDATIONS CONCERNING UTIUTY OF INTERNATIONAL 
CONFERENCE.—The Seminar shall specifically consider the utility of, 
and make recommendations regarding, a subsequent International 
Conference on Small Business and Trade that would— 
(1) help establish linkages between United States small busi-
ness owners and small business owners in foreign countries; 
(2) enable United States small business owners to learn how 
others organize themselves for exporting; and 
(3) foster greater consideration of small business concerns in 
the GATT. 
SEC. 8012. TRADE NEGOTIATIONS. 
15 USC 631 note. 
It is the sense of the Congress that the interests of the small 
business community have not been adequately represented in trade 
policy formulation and in trade negotiations. Therefore, it is the 
sense of the Congress that the Administrator of the Small Business 
Administration should be appointed as a member of the Trade 
Policy Committee and that the United States Trade Representative 
should consult with the Small Business Administration and its 
Office of Advocacy in trade policy formulation and in trade 
negotiations. 
Further, it is the sense of the Congress that the United States 
Trade Representative would better serve the needs of the small 
business community with full-time staff assistance with responsibil-
ities for smedl business trade issues. 
Further, it is the sense of the Congress that the United States 
Trade Representative should appoint a special trade assistant for 
small business. 
SEC. 8013. PROMULGATION OF REGULATIONS. 
15 USC 631 note. 
Notwithstanding any law, rule, or regulation, the Small Business 
Administration shall promulgate final regulations to carry out the 
provisions of this title within six months £rfter the date of enactment 
of this title. 
SEC. 8014. EFFECTIVE DATE. 
15 USC 631 note. 
This title shall become effective on the date of its enactment. 
TITLE IX—PATENTS 
Subtitle A—Process Patents 
Arendme^rS"* 
Act of 1988. 
SEC. 9001. SHORT TITLE. 
35 USC 1 note. 
This subtitle may be cited as the "Process Patent Amendments 
Act of 1988". 
SEC. 9002. RIGHTS OF OWNERS OF PATENTED PROCESSES. 
Section 154 of title 35, United States Code, is amended by insert-
ing after "United States" the following: "and, if the invention is a 
process, of the right to exclude others from using or selling through-
out the United States, or importing into the United States, products 
made by that process,". 
SEC. 9003. INFRINGEMENT FOR IMPORTATION, USE, OR SALE. 
Section 271 of title 35, United States Code, is amended by adding 
at the end the following new subsection: 
102 STAT. 1564 
PUBLIC LAW 100-418—AUG. 23, 1988 
Courts, U.S. 
Claims. 
"(g) Whoever without authority imports into the United States or 
sells or uses within the United States a product which is made by a 
process patented in the United States shall be liable as an infringer, 
if the importation, sale, or use of the product occurs during the term 
of such process patent. In an action for infringement of a process 
patent, no remedy may be granted for infringement on account of 
the noncommercial use or retail sale of a product unless there is no 
adequate remedy under this title for infringement on account of the 
importation or other use or sale of that product. A product which is 
made by a patented process will, for purposes of this title, not be 
considered to be so made after— 
"(1) it is materially changed by subsequent processes; or 
"(2) it becomes a trivial and nonessential component of 
another product.". 
SEC. 9004. DAMAGES FOR INFRINGEMENT. 
(a) LIMITATIONS AND OTHER REMEDIES.—Section 287 of title 35, 
United States Code, is amended— 
(1) in the section heading by striking "Limitation on 
damages" and inserting "Limitation on damages and other 
remedies"; 
(2) by inserting "(a)" before "Patentees"; and 
(3) by adding at the end the following: 
"(bXl) An infringer under section 271(g) shall be subject to all the 
provisions of this title relating to damages and injunctions except to 
the extent those remedies are modified by this subsection or section 
9006 of the Process Patent Amendments Act of 1988. The modifica-
tions of remedies provided in this subsection shall not be available 
to any person who— 
"(A) practiced the patented process; 
"(B) owns or controls, or is owned or controlled by, the person 
who practiced the patented process; or 
"(C) had knowledge before the infringement that a patented 
process was used to make the product the importation, use, or 
sale of which constitutes the infringement. 
"(2) No remedies for infringement under section 271(g) of this title 
shall be available with respect to any product in the possession of, or 
in transit to, the person subject to liability under such section before 
that person had notice of infringement with respect to that product. 
The person subject to liability shall bear the burden of proving any 
such possession or transit. 
"(3XA) In making a determination with respect to the remedy in 
an action brought for infringement under section 271(g), the court 
shall consider— 
"(i) the good faith demonstrated by the defendant with respect 
to a request for disclosure, 
"(ii) the good faith demonstrated by the plaintiff with respect 
to a request for disclosure, and 
"(iii) the need to restore the exclusive rights secured by the 
patent. 
"(B) For purposes of subparagraph (A), the following are evidence 
of good faith: 
"(i) a request for disclosure made by the defendant; 
"(ii) a response within a reasonable time by the person receiv-
ing the request for disclosure; and 
(iii) the submission of the response by the defendant to the 
manufacturer, or if the manufacturer is not known, to the 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1565 
supplier, of the product to be purchased by the defendant, 
together with a request for a written statement that the process ^ 
claimed in any patent disclosed in the response is not used to 
. 
produce such product. 
The failure to perform any acts described in the preceding sentence 
is evidence of absence of good faith unless there are mitigating 
circumstances. Mitigating circumstances include the case in which, 
due to the nature of the product, the number of sources for the 
product, or like commercial circumstances, a request for disclosure 
is not necessary or practicable to avoid infringement. 
"(4XA) For purposes of this subsection, a 'request for disclosure' 
means a written request made to a person then engaged in the 
manufacture of a product to identify all process patents owned by or 
licensed to that person, as of the time of the request, that the person 
then reasonably believes could be asserted to be infringed under 
section 271(g) if that product were imported into, or sold or used in, 
the United States by an unauthorized person. A request for disclo-
sure is further limited to a request— 
"(i) which is made by a person regularly engaged in the 
United States in the sale of the same type of products as those 
manufactured by the person to whom the request is directed, or 
which includes facts showing that the person making the re-
quest plans to engage in the sale of such products in the United 
States; 
"(ii) which is made by such person before the person's first 
importation, use, or sale of units of the product produced by an 
infringing process and before the person had notice of infringe-
ment with respect to the product; and 
"(iii) which includes a representation by the person making 
the request that such person will promptly submit the patents 
identified pursuant to the request to the manufacturer, or if the 
manufacturer is not known, to the supplier, of the product to be 
purchsised by the person making the request, and will request 
from that manufacturer or supplier a written statement that 
none of the processes claimed in those patents is used in the 
manufacture of the product. 
» 
"(B) In the case of a request for disclosure received by a person to 
whom a patent is licensed, that person shall either identify the 
patent or promptly notify the licensor of the request for disclosure. 
"(C) A person who has marked, in the manner prescribed by 
subsection (a), the number of the process patent on all products 
made by the patented process which have been sold by that person 
in the United States before a request for disclosure is received is not 
required to respond to the request for disclosure. For purposes of the 
preceding sentence, the term 'all products' does not include products 
made before the effective date of the Process Patent Amendments 
Act of 1988. 
"(5XA) For purposes of this subsection, notice of infringement 
means actual knowledge, or receipt by a person of a written notifica-
tion, or a combination thereof, of information sufficient to persuade 
a reasonable person that it is likely that a product was made by a 
process patented in the United States. 
"(B) A written notification from the patent holder charging a 
person with infringement shall specify the patented process alleged 
to have been used and the reasons for a good faith belief that such 
process was used. The patent holder shall include in the notification 
such information as is reasonably necessary to explain fairly the 
102 STAT. 1566 
PUBLIC LAW 100-418—AUG. 23, 1988 
patent holder's belief, except that the patent holder is not required 
to disclose any trade secret information. 
"(C) A person who receives a written notification described in 
subparagraph (B) or a written response to a request for disclosure 
described in paragraph (4) shall be deemed to have notice of 
infringement with respect to any patent referred to in such written 
notification or response unless that person, absent mitigating 
circumstances— 
"(i) promptly transmits the written notification or response to 
the manufacturer or, if the manufacturer is not known, to the 
supplier, of the product purchased or to be purchased by that 
person; and 
"(ii) receives a written statement from the manufacturer or 
supplier which on its face sets forth a well grounded factual 
basis for a belief that the identified patents are not infringed. 
"(D) For purposes of this subsection, a person who obtains a 
product made by a process patented in the United States in a 
quantity which is abnormally large in relation to the volume of 
business of such person or an efficient inventory level shall be 
rebuttably presumed to have actual knowledge that the product was 
made by such patented process. 
"(6) A person who receives a response to a request for disclosure 
under this subsection shall pay to the person to whom the request 
was made a reasonable fee to cover actual costs incurred in comply-
ing with the request, which may not exceed the cost of a commer-
cially available automated patent search of the matter involved, but 
in no case more than $500.". 
(b) TECHNICAL AMENDMENT.—The item relating to section 287 of 
title 35, United States Code, in the table of sections for chapter 29 of 
such title is amended to read as follows: 
"287. Limitation on damages and other remedies; marking and notice.". 
SEC. 9005. PRESUMPTION IN CERTAIN INFRINGEMENT ACTIONS. 
(a) PRESUMPTION THAT PRODUCT MADE BY PATENTED PROCESS.— 
Chapter 29 of title 35, United States Code, is amended by adding at 
the end the following: 
"§ 295. Presumption: Product made by patented process 
"In actions alleging infringement of a process patent based on the 
importation, sale, or use of a product which is made from a process 
patented in the United States, if the court finds— 
"(1) that a substantial likelihood exists that the product was 
made by the patented process, and 
"(2) that the plaintiff has made a re£isonable effort to deter-
mine the process actually used in the production of the product 
and was unable to so determine, 
the product shall be presumed to have been so made, and the burden 
of establishing that the product was not made by the process shall 
be on the party asserting that it was not so made.'. 
(b) CONFORMING AMENDMENT.—The table of sections for chapter 
29 of title 35, United States Code, is amended by adding after the 
item relating to section 294 the following: 
"295. Presumption: Product made by patented process.". 
35 u s e 271 note. 
SEC. 9006. EFFECTIVE DATE. 
(a) IN GENERAL.—The amendments made by this subtitle take 
effect 6 months after the date of enactment of this Act and, subject 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1567 
to subsections (b) and (c), shall apply only with respect to products 
made or imported after the effective date of the amendments made 
by this subtitle. 
(b) EXCEPTIONS.—The amendments made by this subtitle shall not 
abridge or affect the right of any person or any successor in business 
of such person to continue to use, sell, or import any specific product 
already in substantial and continuous sale or use by such person in 
the United States on January 1, 1988, or for which substantial 
preparation by such person for such sale or use was made before 
such date, to the extent equitable for the protection of commercial 
investments made or business commenced in the United States 
before such date. This subsection shall not apply to any person or 
any successor in business of such person using, selling, or importing 
a product produced by a patented process that is the subject of a 
process patent enforcement action commenced before January 1, 
1987, before the International Trade Commission, that is pending or 
in which an order has been entered. 
(c) RETENTION OF OTHER REMEDIES.—The amendments made by 
this subtitle shall not deprive a patent owner of any remedies 
available under subsections (a) through (f) of section 271 of title 35, 
United States Code, under section 337 of the Tariff Act of 1930, or 
under any other provision of law. 
SEC. 9007. REPORTS TO CONGRESS. 
35 USC 271 note. 
(a) CONTENTS.—The Secretary of Commerce shall, not later than 
the end of each 1-year period described in subsection Os), report to 
the Congress on the effect of the amendments made by this subtitle 
on those domestic industries that submit complaints to the Depart-
ment of Commerce, during that 1-year period, alleging that their 
legitimate sources of supply have been adversely affected by the 
amendments made by this subtitle. 
03) WHEN SUBMITTED.—A report described in subsection (a) shall 
be submitted with respect to each of the five 1-year periods which 
occur successively beginning on the effective aate of the amend-
ments made by this subtitle and ending five years after that effec-
tive date. 
Subtitle B—Foreign Filing 
SEC. 9101. INCREASED EFFECTIVENESS OF PATENT LAW. 
Patent Law 
(a) SHORT TITLE.—This section may be cited £is the "Patent Law Amendments 
Foreign Filing Amendments Act of 1988". 
Act of 1988. 
0)) FILING OF APPLICATIONS IN FOREIGN COUNTRIES.—(1) Section 
35 use i note. 
184 of title 35, United States Code, is amended— 
(A) in the third sentence by— 
(i) striking out "inadvertently"; and 
(,ii) inserting "through error and without deceptive 
intent" after "filed abroad"; and 
(B) by adding at the end thereof the following new paragraph: 
"The scope of a license shall permit subsequent modifications, 
amendments, and supplements containing additional subject matter 
if the application upon which the request for the license is based is 
not, or was not, required to be made available for inspection under 
section 181 of this title and if such modifications, amendments, and 
supplements do not change the general nature of the invention in a 
manner which would require such application to be made available 
102 STAT. 1568 
PUBLIC LAW 100-418—AUG. 23, 1988 
for inspection under such section 181. In any case in which a Ucense 
is not, or was not, required in order to file an application in any 
foreign country, such subsequent modifications, amendments, and 
supplements may be made, without a license, to the application filed 
in the foreign country if the United States application was not 
required to be made available for inspection under section 181 and if 
such modifications, amendments, and supplements do not, or did 
not, change the general nature of the invention in a manner which 
would require the United States application to have been made 
available for inspection under such section 181.". 
(2) Section 185 of title 35, United States Code, is amended by 
inserting immediately before the period in the last sentence the 
following: ", unless the failure to procure such license was through 
error and without deceptive intent, and the patent does not disclose 
subject matter within the scope of section 181 of this title.". 
(3) Section 186 of title 35, United States Code, is amended by 
inserting "willfully" after "whoever", the second place it appears. 
35 use 184 note. 
(c) REGULATIONS.—The Commissioner of Patents and Trademarks 
shall prescribe such regulations as may be necessary to implement 
the amendments made by this section. 
35 use 184 note. 
(d) EFFECTIVE DATE.—(1) Subject to paragraphs (2), (3), and (4) of 
this subsection, the amendments made by this section shall apply to 
all United States patents granted before, on, or after the date of 
enactment of this section, to all applications for United States 
patents pending on or filed after such date of enactment, and to all 
licenses under section 184 granted before, on, or after the date of 
enactment of this section. 
(2) The amendments made by this section shall not affect any final 
decision made by a court or the Patent and Trademark Office before 
the date of enactment of this section with respect to a patent or 
application for patent, if no appeal from such decision is pending 
and the time for filing an appeal has expired. 
eiaims. 
(3) No United States patent granted before the date of enactment 
of this section shall abridge or affect the right of any person or his 
successors in business who made, purchased, or used, prior to such 
date of enactment, anything protected by the patent, to continue the 
use of, or to sell to others to be used or sold, the specific thing so 
made, purchased, or used, if the patent claims were invalid or 
otherwise unenforceable on a ground obviated by this section and 
the person made, purchased, or used the specific thing in reasonable 
reliance on such invalidity or unenforceability. If a person reason-
ably relied on such invalidity or unenforceability, the court before 
which such matter is in question may provide for the continued 
manufacture, use, or sale of the thing made, purchased, or used as 
specified, or for the manufacture, use, or sale of which substantial 
preparation was made before the date of enactment of this section, 
and it may also provide for the continued practice of any process 
practiced, or for the practice of which substantial preparation was 
made, prior to the date of enactment of this section, to the extent 
and under such terms as the court deems equitable for the protec-
tion of investments made or business commenced before such date of 
enactment. 
(4) The amendments made by this section shall not affect the right 
of any party in any case pending in court on the date of enactment 
of this section to have its rights or liabilities— 
(A) under any patent before the court, or 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1569 
(B) under any patent granted after such date of enactment 
which is related to the patent before the court by deriving 
priority rights under section 120 or 121 of title 35, United States 
Code, from a patent or an application for patent common to 
both patents, 
determined on the basis of the substantive law in effect before the 
date of enactment of this section. 
Subtitle C—Patent Term Extension 
SEC. 9201. PATENT TERM EXTENSION. 
(a) GENERAL RULE.—Except as provided in subsection (b), the term 
of United States Patent number 3,674,836 issued for the drug Lopid 
shall be extended in accordance with section 9202 for 3 years and 
6 months from the date of its expiration. 
O
t
)
) CONDITIONS.— 
(1) No extension of the term of the patent described in subsec-
tion (a) may be made unless there has been submitted for the 
drug Lopid a supplemental new drug application under section 
505 of the Federal Food, Drug, and Cosmetic Act for the ap-
proval of an expemsion of the permitted indications and usage in 
the labeling of the drug. 
(2) If the Secretary of Health and Human Services makes a 
final determination, after the date of the enactment of this Act, 
disapproving the first supplemental new drug application 
submitted under section 505 of the Federal Food, Drug, and 
Cosmetic Act for the approval of an expansion of the permitted 
indications and usage in the labeling of the drug Lopid— 
(A) no extension shall be granted for the term of the 
patent under subsection (a) if the final determination of 
disapproval is issued before the date the term of the patent 
is extended under subsection (a), and 
(B) if an extension has been granted under subsection (a) 
before the final determination of disapproval is issued, the 
extension shall be terminated as of the date of such dis-
approval. 
The Secretary shall promptly notify the Commissioner of Pat-
ents and Trademarks of such a disapproval. 
SEC. 9202. PROCEDURE. 
(a) NOTICE.—To receive the patent term extension under section 
9201(a), the owner of record of the patent shall notify the Commis-
sioner of Patents and Trademarks before January 4, 1989, of the 
identity of the supplemental new drug application required under 
section 92010i)Xl). 
O
t
>
) EXTENSION.—On receipt of the notice under subsection (a), the 
Commissioner shall, in accordance with section 9201, promptly issue 
to the owner of record of the patent a certificate of extension, under 
seal, stating the fact and length of the extension and indicating that 
such extension is limited to the subject matter of claim 1 (insofar as 
claim 1 is needed to cover the compound described in claim 6 and 
additionally insofar as claim 1 is needed to cover the pharmaceuti-
cally acceptable salts of the compound described in claim 6) and 
claim 6 of the patent. Such certificate shall be recorded in the 
official file of the patent extended and such certificate shall be 
considered as part of the original patent, and an appropriate notice 
Drugs £ind drug 
abuse. 
Drugs and drug 
abuse. 
Claims. 
Records. 
102 STAT. 1570 
PUBLIC LAW 100-418—AUG. 23, 1988 
Records. 
shall be published in the Official Gazette of the Patent and Trade-
mark Office. If the extension of the term of the patent is to be 
terminated under section 9201(b), the Commissioner shall promptly 
issue a certificate of termination of extension, under seal, stating 
the fact that the patent term extension is terminated, effective on 
the date of the Anal determination that the supplemental new drug 
application under section 505 of the Federal Food, Drug, and Cos-
metic Act was disapproved. Such certificate shall be recorded in the 
offici£d file of the patent and such certificate shall be considered as a 
part of the original patent, and an appropriate notice shall be 
published in the Official Gazette of the Patent and Trademark 
Office. 
TITLE X—OCEAN AND AIR 
TRANSPORTATION 
Foreign 
Shipping 
Practices Act of 
1988. 
Maritime affairs. 
46 u s e app. 1701 
note. 
46 u s e app. 
1710a. 
Subtitle A—Foreign Shipping Practices 
SEC. 10001. SHORT TITLE. 
This subtitle may be cited £is the "Foreign Shipping Practices Act 
of 1988". 
SEC. 10002. FOREIGN LAWS AND PRACTICES. 
(a) DEFINITIONS.—For purposes of this section— 
(1) "common carrier", "marine terminal operator", "non-
vessel-operating common carrier", "ocean common carrier", 
"person', "shipper", "shippers' association", and "United 
States" have the meanings given each such term, respectively, 
in section 3 of the Shipping Act of 1984 (46 App. U.S.C. 1702); 
(2) "foreign carrier" means an ocean common carrier a major-
ity of whose vessels are documented under the laws of a country 
other than the United States; 
(3) "maritime services" means port-to-port carriage of cargo 
by the vessels operated by ocean common carriers; 
(4) "maritime-related services" means intermodal operations, 
terminal operations, cargo solicitation, forwarding and agency 
services, non-vessel-operating common carrier operations, and 
all other activities and services integral to total transportation 
systems of ocean common carriers and their foreign domiciled 
affiliates on their own and others' behalf; 
(5) "United States carrier" means an ocean common carrier 
which operates vessels documented under the laws of the 
United States; and 
(6) "United States oceanborne trade" means the carriage of 
cargo between the United States and a foreign country, whether 
direct or indirect, by an ocean common carrier. 
(b) AUTHORITY TO CONDUCT INVESTIGATIONS.—The Federal Mari-
time Commission shall investigate whether any laws, rules, regula-
tions, policies, or practices of foreign governments, or any practices 
of foreign carriers or other persons providing maritime or maritime-
related services in a foreign country result in the existence of 
conditions that— 
(1) adversely affect the operations of United States carriers in 
United States oceanborne trade; and 
PUBLIC LAW 100-418—AUG. 23, 1988 
102 STAT. 1571 
(2) do not exist for foreign carriers of that country in the 
United States under the laws of the United States or as a result 
of acts of United States carriers or other persons providing 
maritime or maritime-related services in the United States. 
(c) INVESTIGATIONS.—(1) Investigations under subsection (b) of this 
section may be initiated by the Commission on its own motion or on 
the petition of any person, including any common carrier, shipper, 
shippers' association, ocean freight forwarder, or marine terminal 
operator, or any branch, department, agency, or other component of 
the Government of the United States. 
(2) The Commission shall complete any such investigation and 
render a decision within 120 days after it is initiated, except that the 
Commission may extend such 120-day period for an additional 90 
days if the Commission is unable to obtain sufficient information to 
determine whether a condition specified in subsection 0^) of this 
section exists. Any notice providing such an extension shall clearly 
state the reasons for such extension. 
(d) INFORMATION REQUESTS.—(1) In order to further the purposes 
of subsection (h) of this section, the Commission may, by order, 
require any person (including any common carrier, shipper, ship-
pers' association, ocean freight forwarder, or marine terminal ojjera-
tor, or any officer, receiver, trustee, lessee, agent or employee 
thereoD to file with the Commission any periodic or special report, 
answers to questions, documentary material, or other information 
which the Commission considers necessary or appropriate. The 
Commission may require that the response to any such order shall 
be made under oath. Such response shall be furnished in the form 
and within the time prescribed by the Commission. 
(2) In an investigation under subsection (b) of this section, the 
Commission may issue subpoenas to compel the attendance and 
testimony of witnesses and the production of records or other 
evidence. 
(3) Notwithstanding any other provision of law, the Commission 
may, in its discretion, determine that any information submitted to 
it in response to a request under this subsection, or otherwise, shall 
not be disclosed to the public. 
(e) ACTION AGAINST FOREIGN CARRIERS.—(1) Whenever, after 
notice and opportunity for comment or hearing, the Commission 
determines that the conditions specified in subsection Ot)) of this 
section exist, the Commission shall take such action as it considers 
necessary and appropriate against any foreign carrier that is a 
contributing cause to, or whose government is a contributing cause 
to, such conditions, in order to offset such conditions. Such action 
may include— 
(A) limitations on sailings to and from United States ports or 
on the amount or type of cargo carried; 
(B) suspension, in whole or in part, of any or all tariffs filed 
with the Commission, including the right of an ocean common 
carrier to use any or all tariffs of conferences in United States 
trades of which it is a member for such period as the Commis-
sion specifies; 
(C) suspension, in whole or in part, of the right of an ocean 
common carrier to operate under any agreement filed with the 
Commission, including agreements authorizing 
preferential 
treatment at terminals, preferential terminal leases, space 
chartering, or pooling of cargo or revenues with other ocean 
common carriers; and 
Classified 
information. 
Contracts. 
102 STAT. 1572 
PUBLIC LAW 100-418—AUG. 23, 1988 
(D) a fee, not to exceed $1,000,000 per voyage. 
(2) The Commission may consult with, seek the cooperation of, or 
make recommendations to other appropriate Government agencies 
prior to taking any action imder this subsection. 
(3) Before a determination under this subsection becomes effective 
or a request is made under subsection (f) of this section, the deter-
mination shall be submitted immediately to the President who may, 
within 10 days after receiving such determination, disapprove the 
determination in writing, setting forth the reasons for the dis-
approval, if the President finds that disapproval is required for 
reasons of the national defense or the foreign policy of the United 
States. 
(f) ACTIONS UPON REQUEST OF THE COMMISSION.—Whenever the 
conditions specified in subsection 0^) of this section are found by the 
Commission to exist, upon the request of the Commission— 
(1) the collector of customs at any port or place of destination 
in the United States shall refuse the clearance required by 
section 4197 of the Revised Statutes (46 App. U.S.C. 91) to any 
vessel of a foreign carrier that is identified by the Commission 
under subsection (e) of this section; and 
(2) the Secretary of the department in which the Coast Guard 
is operating shall deny entry, for purposes of oceanborne trade, 
of any vessel of a foreign carrier that is identified by the 
Commission under subsection (e) of this section to any port or 
place in the United States or the navigable waters of the United 
States, or shall detain any such vessel at the port or place in the 
United States from which it is about to depart for any other 
port or place in the United States. 
(g) REPORT.—The Commission shaU include in its annual report to 
Congress— 
(1) a list of the twenty foreign countries which generated the 
largest volume of oceanborne liner cargo for the most recent 
calendar yeai" in bilateral trade with the United States; 
(2) an analysis of conditions described in subsection 0^) of this 
section being investigated or foimd to exist in foreign countries; 
(3) any actions being taken by the Commission to offset such 
conditions; 
(4) any recommendations for additional legislation to offset 
such conditions; and 
(5) a list of petitions filed under subsection (c) of this section 
that the Commission rejected, and the reasons for each such 
rejection. 
(h) The actions against foreign carriers authorized in subsections 
(e) and (f) of this section may be used in the administration and 
enforcement of section 13fl3X5) of the Shipping Act of 1984 (46 App. 
U.S.C. 1712(bX5)) or section 19(lXb) of the Merchant Marine Act, 
1920 (46 App. U.S.C. 876). 
(i) Any rule, r^ulation or final order of the (Commission issued 
under this section shall be reviewable exclusively in the same forum 
and in the same manner as provided in section 2342(3XB) of title 28, 
United States Code. 
SEC. 10003. MOBILE TRADE FAIRS. 
(a) Section 212(BXc) of the Merchant Marine Act, 1936 (46 App. 
U.S.C. 1122b(c)), is amended to read as follows: 
PUBLICLAWlOO-418—AUG. 23,1988, . 
102 STAT. 1573 
"(c) In addition to any amounts appropriated to carry out trade -
promotion activities, the President may use foreign currencies 
owned by or owed to the United States to carry out this section.". 
(b) For one year after the date of enactment of this Act, a vessel 46 USC 3302 
that is undergoing repair or retrofitting for use solely for mobile 
^°^-
trade fair purposes is deemed to be out of commission under section 
3302(e) of title 46, United States Code, during the repair or 
retrofitting. 
Subtitle B—International Air Transportation 
SEC. 10011. MAXIMUM PERIOD FOR TAKING ACTION WITH RESPECT TO 
COMPLAINTS. 
Section 2(bX2) of the International Air Transportation Fair 
Competitive Practices Act of 1974 (49 U.S.C. App. 1159bObX2)) is 
amended— 
(1) in the third sentence by striking out "but in no event may" 
and all that follows through "180 days" and inserting in lieu 
thereof "but the aggregate period for taking action under this 
subsection may not exceed 90 days"; and 
(2) by inserting after the third sentence the following new 
sentence: "However, if on the last day of such 90-day period, the 
Secretary finds that— 
"(A) negotiations with the foreign government have pro-
gressed to a point that a satisfactory resolution of the 
complaint appears imminent; 
"(B) no United States air carrier has been subject to 
economic injury 
by the foreign 
government 
or 
an 
instrumentality of the foreign government (including a for-
eign air carrier) as a result of the filing of the complaint; 
and 
"(C) public interest requires additionsd time before the 
taking of action with respect to the compl£dnt; 
the Secretary may extend such 90-day period for not to exceed an 
additional 90 days.". 
SEC. 10012. VIEWS OF THE DEPARTMENT OF COMMERCE AND OFFICE OF 
THE UNITED STATES TRADE REPRESENTATIVE. 
Section 2(b) of the International Air Transportation Fair Competi-
tive Practices Act of 1974 (49 U.S.C. App. 1159b(b)) is amended— 
(1) by redesignating paragraph (3), and any references 
thereto, as paragraph (4); 
(2) by striking out the last sentence of paragraph (2); and 
(3) by inserting after paragraph (2) the following new 
paragraph: 
"(3) In considering any complaint, or in any proceedings under its 
own initiative, under this subsection, the Secretary shall— 
"(A) solicit the views of the Department of State, the Depart-
ment of Commerce, and the Office of the United States Trade 
Representative; and 
"(B) provide any affected air carrier or foreign air carrier 
with reasonable notice and such opportunity to file written 
evidence and argument as is consistent with acting on the 
complaint within the time limits set forth in this subsection.". 
102 STAT. 1574 
PUBLIC LAW 100-418—AUG. 23, 1988 
SEC. 10013. REPORTING ON ACTIONS TAKEN WITH RESPECT TO COM-
PLAINTS. 
Section 2 of the International Air Transportation Fair Competi-
tive Practices Act of 1974 (49 U.S.C. App. 1159b) is amended by 
adding at the end thereof the following new subsection: 
"(e) Not later than the 30th day after taking action with respect to 
a complaint under this section, the Secretary of Transportation 
shall report to the Committee on Public Works and Transportation 
of the House Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate on actions that have been 
taken under this section with respect to the complaint.". 
Approved August 23, 1988. 
LEGISLATIVE HISTORY—H.R. 4848: 
CONGRESSIONAL RECORD, Vol. 134 (1988): 
July 13, considered and passed House. 
Aug. 2, 3, considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 24 (1988): 
Aug. 23, Presidential remarks.