use in reproducing sound in connection with moving-picture newsreels undeveloped negative moving-picture film of American manufacture exposed abroad for silent or sound newsreel.

I, therefore, support the logical and realistic change embodied in the proposed amendment and urge its adoption.

Mr. MILLS. Mr. Chairman, I yield 15 minutes to the gentleman from Pennsylvania [Mr. EBERHARTER].

Mr. EBERHARTER. Mr. Chairman, the issue of high tariffs and low tariffs has been a historic one. The halls of this Congress have reverberated for many, many years over the question of high tariffs and low tariffs; barriers to trade, or more free trade, the principle of the necessity of trading with other nations in the world.

The issue was very much in the forefront 6 months ago when the slogan was used very extensively, "More trade, not aid."

I am afraid, Mr. Chairman, that when the final record of this Congress is made, it will show that this Congress has put more barriers to trade on the books than have been enacted in the past 20 years.

We are faced today with that issue, whether or not one of the chief barriers to the free flow of trade will be removed or whether we will go backward to the old policy of high tariffs, high protection to the industries of the United States.

Mr. Chairman, it was always my belief that the principal argument of those advocating high tariffs was our protection, the protection of American business, protection of American industry, protection of American agriculture, protection of American jobs.

In an amendment which will be offered to this measure, and which I approve, as I approve the measure itself wholeheartedly, there is contained an absolute protection to industry, protection to business, protection to the working men and women of America, and protection to agriculture.

The amendment which will be offered by the committee says very plainly that

Such countervailing duties shall be imposed only if the Secretary of the Treasury shall determine after such investigation as he deems necessary that an industry in the United States is being or is likely to be injured or is prevented or retarded from being established by reason of the importation into the United States of articles or merchandise of the class or kind in respect of which the bounty or grant is paid or bestowed.

Mr. Chairman, in my opinion such language cannot be construed as anything else but perfect protection for every industry in the United States. Coupled with that, of course, there must be a finding by the Secretary of the Treasury that a bounty is being paid by a foreign country to an exporter of goods to the United States. When this original act was passed giving the right to the Secretary of the Treasury to impose a countervailing duty of course the money markets were pretty stable, one system was used all over the world; you might say the rate of exchange was well recognized, and it stood for months and months, perhaps years, before it changed

in value. But today, Mr. Chairman, practically every country in Latin America and in South America finds it necessary in order to exist financially to use a multiple system of exchange. It is absolutely necessary, in many instances, otherwise their governments might collapse, they would go bankrupt; so it has become the practice in many South American and Latin-American countries to have a multiple system of exchange. Mr. MASON. Mr. Chairman, will the gentleman yield?

Mr. EBERHARTER. I yield.

Mr. MASON. Would the gentleman please explain what a multiple system please explain what a multiple system of exchange is so that people who have not been sitting in the committee with us may know what it means?

Mr. EBERHARTER. A multiple system of exchange is one whereby a country allows a different amount of money in American dollars for different types of goods; for some types you are allowed more, for others less. So it has become the practice in many of the Latin-American and South American countries as ican and South American countries as part of their taxing system, Mr. Chairman-and that is important, it is part of their taxing system to pay higher rates for the American dollars on certain items that are exported. In that manner the governments of these Latin-American countries obtain more of the American dollars that they need, and they export more of the goods that they do not need in their own country.

The law in force at the present time provides that if the Secretary of the Treasury finds that any country-any country in the world is giving a subsidy on exports he shall impose a countervailing duty on that item or those items on which a subsidy is being paid. We know as a matter of fact today there are several South American countries that are paying a bounty on goods exported to the United States. The question has been before the Secretary of the Treasury for quite a while, and the Secretary in order to be fair about the thing, in order not to alienate every one of these South American countries that are paying bounties, states in effect these are not his words-he states in effect: "I cannot really impose a countervailing duty upon every country in Latin America and South America that is paying an export bounty. I ought to know first if an injury is being done to any industry in the United States by reason of this subsidy that is being paid."

Why should we in this country care what bounty is being paid as long as it does not injure the United States, does not injure the industry of the United States, does not injure its working people, does not injure its agriculture, does not injure any segment of the American economy? Why should we impose a countervailing duty on a country's exports that has no effect except to cost the American consumer more money? Aside from that, Mr. Chairman, under our policy of trade, not aid are we making friends by imposing countervailing duties when their exports do not do us any harm? They harm only the American consumer; they do not harm any industry in the United States, or its agriculture, or the workingman. I say it is a I say it is a

good way to lose friends and to make enemies, that compulsory, mandatory provision in the present act requiring the Secretary of the Treasury to impose a countervailing duty whether it is doing any harm to the people of this country or not; it is absolutely wrong.

If you want to go absolutely contrary to our policy, which has been enunciated by the last four Presidents of the United States and by the present President of the United States, vote down this amendment. That is how it will be construed all over the world.

You can attack this amendment because you have received a lot of telegrams, you can attack this amendment because the place is filled with lobbyists. That is what is going on. I know it, and every member of this committee sitting here knows it.

Are we going to legislate by telegrams from special pleaders? Let it go down on the record that you are turning down the amendment and going contrary to every policy and principle we have acted upon in this country for the last 20 years. Turn down your Secretary of the Treasury, turn down your Secretary of State, turn them all down, this is a Congress that refuses to go along with enunciated principles. We are giving merely lip service that is what we are doing-to the policy of "trade, not aid.”

I wish there could be a record vote on this. I wish we could have direct word from the President of the United States. Let the State Department send word all over the world that we in Congress are affirmatively continuing barriers to trade that have no effect whatsoever on American industry. That is what failure to adopt this amendment will do.

Mr. Chairman, we know some manufacturers in this country have sent hundreds and hundreds of telegrams down here, including the National Association of Wool Manufacturers, trying to defeat this amendment.

On July 2 of this year a letter was sent by the National Association of Wool Manufacturers, the same people who sent you the telegrams, to members of their association. I will not read the whole letter but here is a part of it:

As already advised by the Secretary, considerable time at the Directors Meeting June 16, was devoted to tariff matters.

Foremost was the report of a special committee established to explore the question of the Duty on Apparel Wool which resulted in a recommendation of a duty-free greasy wool policy. A copy of this committee's re

port, as unanimously endorsed by the Directors present, is enclosed.

Mr. Chairman, I suppose that members of the committee here know that the wool manufacturers and the growers of wool have cooperated in the past in order to have a high tariff on wool, both greasy wool, tops, and every other kind of merchandise manufactured from wool. wool. This is all confidential, too.

You see here a case where the wool manufacturers are pulling the rug out from under the wool-growing States, so you Members who represent the woolgrowing States should not think you are going to get help for protection for your own industry since the wool manufacturers under the direction of their board

Here is another part of this letter:

In closing it should be noted that the

recommendation of the Directors on the enclosed report represents a basic departure from the Association's present policies. The most careful consideration of the members is, therefore, earnestly solicited so that should a "raw wool free of duty" policy be adopted it can be said to reflect the studied conclusions of the membership.

So, you Members from the wool-growing States, do not pay too much attention to that telegram you received within the last few days from the National Association of Wool Manufacturers.

Now, Mr. Chairman, I am going to refer to a little pamphlet that I have here entitled "Duty on Apparel Wool (Not for Publication)." This is a report to the board of directors of the National Association of Wool Manufacturers by a special committee, June 16, 1953. That is less than a month ago. Here is what it says:

(Not for publication)

This committee recommends endorsement of a duty-free policy on greasy wool for the association.

In other words, they think they are writing the tariff laws, and maybe they are, judging by the shift of sentiments since the telegram they sent. I quote further from the report:

By this action it does not wish to infer opposition to any future proposals of the growers seeking Government assistance by other means on grounds of national interest. The committee recognizes there are some risks in this position, but it believes the risks of not assuming it are even greater.

Now I want to read one other thing in here that is very, very interesting:

Also to be considered in an evolution of this nature

Evolution? They mean a change in their policy

is the risk of having the existing inadequate ad valorem duty on manufacturers—

You see, it is inadequate on manufacturers but they want it free as far as the wool grower is concerned

the portion of duty designed to afford direct protection to the American manufacturer, further reduced.

Those of you who received telegrams should listen to this:

It must also be recognized that should this industry abandon its former policy of support to the wool growers for protective duty

I can hardly read this without laughing

its chance of maintaining the political support for protection on manufactures from Senators and Congressmen from wool-growing States is nil.

Would that not make you laugh except that it affects a fundamental policy of these United States? That is what you are passing on. I know that the word will go out all over the world what this Congress has done, and I know the record will be written when the session is over, that we are going back to a high tariff policy. I thought that was the opposite of what both parties intended.

marks made today, we might as well just shut our doors to our friends and neighbors in the southern part of these Americas, shut out trade with the countries across the seas, and depend upon ourselves alone. If you defeat this amendment, I say it is the best thing you could possibly do to lose friends and make enemies.

Therefore, Mr. Chairman, I hope the amendment will be adopted.

Mr. SMITH of Mississippi. Mr. Chairman, will the gentleman yield?

Mr. EBERHARTER. I yield.

Mr. SMITH of Mississippi. The proposal has been made by several of the agricultural leaders of the country, including the distinguished chairman of the House Committee on Agriculture, that may be necessary in the interests of developing a better export system for agricultural products such as wheat and possibly some of the other agricultural possibly some of the other agricultural commodities to set up a two-price system for these commodities; in other words, a system that would approach the type of system that is used by some of the countries in South America whom today we are shutting out. If we adopt the two-price system for agricultural commodities yet refuse to allow commodities of the same nature from other countries to come into our country without a double taxation, so to speak, will we not be defeating our effort to improve the export commodity market?

Mr. EBERHARTER. I think the gentleman is absolutely correct, because no man who is well versed in economics will deny the fact that it is absolutely necessary for some of these countries to have a multiple rate of exchange system. I hope we are not in that position in the United States today. But if we are going to say to all the rest of the world that uses this multiple rate of exchange system, "We are going to penalize you because you are not using the same system as we in the United States use," I would say that is a perfect way to become an isolated country, to tear down our trade practices of many years past built up so we would have an expanded trade, and to erect barriers and do everything to stifle the expansion of our own exports. Much of our profits in industry and agriculture in this country are made from the exports we make to other countries, that is, the extra sales that bring profits to American industry and American agriculture.

Here is a copy of the Treasury De-
partment letter and enclosure:
TREASURY DEPARTMENT,
Washington, June 1, 1953.

Hon. DANIEL A. REED,
Chairman, Ways and Means Committee,
House of Representatives,
Washington, D. C.

MY DEAR MR. REED: During the course of my testimony before the Committee on Ways and Means on H. R. 5106, the customs simplification bill, I indicated that the Treasury Department had additional suggestions for customs simplification legislation that were not included in H. R. 5106, and Mr. EBERHARTER requested that they be made available to the committee.

I was referring to a proposal that has been the subject of prior discussion which would (a) add an injury requirement to sec

tion 303 of the Tariff Act regarding the imposition of countervailing duties, and (b) transfer to the Tariff Commission the jurisdiction to determine injury in cases arising under the antidumping statute and under section 303.

However, in view of the President's request to the Congress for a commission to review foreign economic policy the Treasury does not wish to suggest (b) above for present consideration by your committee. Provisions transferring the Treasury's present injury-finding determination under the Antidumping Act to the Tariff Commission and giving the Tariff Commission the authority to determine injury in countervailing duty cases are appropriate for consideration by the proposed commission in connection with a review of the proper role of the Tariff Commission and other agencies of the Government in this field.

For the present, the Treasury Department believes that the one addition to H. R. 5106 which it would now recommend is an amendment to section 303 of the Tariff Act

providing that countervailing duties should be imposed only where injury exists or is threatened to a domestic industry. The Department suggests consideration of the enclosed draft amendment to section 303 of the Tariff Act which would accomplish this purpose. I am sending a copy of this letter and its enclosure to Mr. EBERHARTER and

Mr. JENKINS.

Very truly yours,

H. CHAPMAN ROSE, Assistant Secretary of the Treasury. [Enclosure.]

Section 303 of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1303) is amended by inserting at the end of the first sentence:

"Such countervailing duty shall be imposed only if the Secretary of the Treasury

shall determine, after such investigation as he deems necessary, that an industry in the United States is being or is likely to be injured, or is prevented or retarded from being established, by reason of the importation into the United States of articles or merchandise of the class or kind in respect of which the bounty or grant is paid or bestowed."

The CHAIRMAN. Under the rule, the bill is considered as having been read for amendment.

The bill is as follows: Be it enacted, etc.

SHORT TITLE AND EFFECTIVE DATE SECTION 1. This act may be cited as the "Customs Simplification Act of 1953" and shall be effective, except as otherwise spe-. cially provided for, on and after the thirtieth day following the date of its enactment.

Sec. 17. Certified invoices and entry of merchandise.

Sec. 18. Verification of documents.

Sec. 19. Amendment of entries.
Sec. 20. Commingled merchandise.

Sec. 21. Correction of errors and mistakes.
Sec. 22. Conversion of currency.

Sec. 23. Transfers of goods in bonded warehouse.

Sec. 24. Customs supervision.
Sec. 25. Saving clause.

REPEAL OF OBSOLETE ACCOUNTING PROVISIONS

SEC. 2. (a) The following sections of the Revised Statutes (relating to obsolete functions of customs officers and functions of

such officers now provided for by other laws) are hereby repealed:

Revised Statutes 2621, as amended (U. S. C., 1946 ed., title 19, sec. 33).

Revised Statutes 2622, as amended (U. S. C., 1946 ed., title 19, sec. 34).

Revised Statutes 2623, as amended (U. S. C., 1946 ed., title 19, sec. 35).

Revised Statutes 2626, as amended (U. S. C., 1946 ed., title 19, sec. 39).

Revised Statutes 2639, as amended (U. S. C., 1946 ed., title 19, sec. 42).

Revised Statutes 2640, as amended (U. S. C., 1946 ed., title 19, sec. 43).

Revised Statutes 2641, as amended (U. S. C., 1946 ed., title 19, sec. 44).

Revised Statutes 2643, as amended (U. S. C., 1946 ed., title 19, sec..45).

(b) Section 439 of the Tariff Act of 1930 (U. S. C., 1946 edition, title 19, sec. 1439) is amended by deleting "the comptroller of customs for the district in which the port of entry is located" and substituting therefor "such employee as the Secretary of the Treasury shall designate," and by deleting "said comptroller of customs" and substituting therefor "such employee designated by the Secretary."

(c) Section 440 of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1440) is amended by deleting "the comptroller of customs for the district in which the port of entry is located" and substituting therefor "such employee as the Secretary of the Treasury shall designate."

(d) Section 523 of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1523) is amended to read as follows:

"SEC. 523. Examination of accounts.

The Secretary of the Treasury or such officer or employee as he shall designate, shall, under regulations and instructions prescribed by the Secretary

"(1) examine the collectors' accounts of receipts and disbursements of money and receipts and disposition of merchandise; and "(2) verify, to such extent as the Secretary of the Treasury shall direct, assessments of duties and taxes and allowances of drawback."

EFFECTIVE DATES OF RATES OF DUTY

SEC. 3. (a) Section 315 of the Tariff Act of 1930, as amended (U. S. C., 1946 ed., title 19, sec. 1315), is further amended to read as follows:

"SEC. 315. Effective dates of rates of duty.

"(a) Except as otherwise specially provided for, the rates of duty imposed by or pursuant to this Act or any other law on any article entered for consumption or withdrawn from warehouse for consumption shall be the rate or rates in effect when the documents comprising the entry for consumption or withdrawal from warehouse for consumption and any estimated or liquidated duties then required to be paid have been deposited with the appropriate customs officer in the form and manner prescribed by regulations of the Secretary of the Treasury, except that

"(1) any article released under an informal mail entry shall be subject to duty at the rate or rates in effect when the preparation of the entry is completed; and

"(2) any article which is not subject to a quantitative or tariff-rate quota and which is covered by an entry for immediate transportation made at the port of original importation under section 552 of this act, if entered for consumption at the port designated by the consignee, or his agent, in such transportation entry without having been taken into the custody of the collector under section 490 of this act, shall be subject to the rate or rates in effect when the transportation entry was accepted at the port of original importation.

"(b) Any article which has been entered for consumption but which, before release from customs custody, is removed from the port or other place of intended release because of inaccessibility, overcarriage, strike, act of God, or unforeseen contingency, shall be subject to duty at the rate or rates in effect when the entry for consumption and any required duties were deposited in accordance with subsection (a) of this section, but only if the article is returned to such port or place within 90 days after the date of removal and the identity of the article as that covered by the entry is established in accordance with regulations prescribed by the Secretary of the Treasury.

"(c) Insofar as duties are based upon the quantity of any merchandise, such duties shall, except as provided in paragraph 813 and section 562 of this act (relating respectively to certain beverages and to manipulating warehouses), be levied and collected upon the quantity of such merchandise at the time of its importation.

"(d) No administrative ruling resulting in the imposition of a higher rate of duty or charge than the Secretary of the Treasury shall find to have been applicable to imported merchandise under an established and uniform practice shall be effective with respect to articles entered for consumption or withdrawn from warehouse for consumption prior to the expiration of 30 days after the date of publication in the weekly Treasury Decisions of notice of such ruling; but this provision shall not apply with respect to the imposition of antidumping duties."

(b) Section 484 (f) of the Tariff Act of 1930, as amended (U. S. C., 1946 ed., title 19, sec. 1484 (f)), is further amended by changing the period at the end to a semicolon and adding "except that, in the case of articles not subject to a quantitative or tariff-rate quota, entry for the entire quantity covered by an entry for immediate transportation made under section 552 of this act may be accepted at the port of entry designated by the consignee, or his agent, in such entry after the arrival of any part of such quantity at such designated port or at such other place of deposit as may be authorized in accordance with regulations prescribed by the Secretary of the Treasury."

Paragraph 354 is amended by deleting the second proviso.

Paragraphs 355, 357, 358, 359, 360, and 361 are amended by deleting the provisos. Paragraph 1553 is amended by deleting both provisos.

(b) The following sections of the Revised Statutes are repealed:

Revised Statutes 2934 (U. S. C. 1946 ed., title 19, sec. 134).

Revised Statutes 2885 (U. S. C., 1946 ed., title 19, sec. 273).

Revised Statutes 2886 (U. S. C., 1946 ed., title 19, sec. 274).

(c) Section 304 (a) (3) of the Tariff Act of 1930, as amended (U. S. C., 1946 ed.,

title 19, sec. 1304 (a) (3)), is further amended by deleting "or" at the end of subdivision (I); by changing the period at the end of subdivision (J) to a semicolon and by adding "or"; and by adding a new subdivision (K) as follows:

"(K) Such article cannot be marked after importation except at an expense which is economically prohibitive, and the failure to mark the article before importation was not due to any purpose of the importer, producer, seller, or shipper to avoid compliance with this section."

TRANSPORTATION OF LEAD-BEARING AND ZINCBEARING ORES

SEC. 5. (a) Paragraph 391 of the Tariff Act of 1930, as amended (U. S. C., 1946 ed., title 19, sec. 1001, par. 391), is further amended by changing the colon at the end of the first proviso to a period; and by amending the rest of the paragraph to read as follows: "The Secretary of the Treasury is authorized to make all necessary regulations to enforce the provisions of this paragraph.".

(b) Paragraph 393 of the Tariff Act of 1930, as amended (U. S. C., 1946 ed., title 19, sec. 1001, par. 393), is further amended by changing the colon at the end of the first proviso to a period; and by amending the rest of the paragraph to read as follows: "The Secretary of the Treasury is authorized to make all necessary regulations to enforce the provisions of this paragraph."

REPEAL OF CERTAIN OBSOLETE RECIPROCAL

PROVISIONS

SEC. 6. (a) Paragraph 812 of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1001, par. 812) is amended by deleting the proviso (relating to the importation of spirits in certain containers).

(b) Section 320 of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1320), relating to reciprocal agreements covering advertising matter, is repealed.

AMERICAN GOODS RETURNED

SEC. 7. Paragraph 1615 (f) of the Tariff Act of 1930, as amended (U. S. C., 1946 ed., title 19, sec. 1201, par. 1615 (f)), is further amended by adding at the end thereof the following new sentences: "When because of the destruction of customs records or for other cause it is impracticable to establish whether drawback was allowed, or to determine the amount of drawback allowed, on a reimported article excepted under subparagraph (e), there shall be assessed thereon an amount of duty equal to the estimated drawback and internal-revenue tax which would be allowable or refundable if the imported merchandise used in the manufacture or production of the reimported article were dutiable or taxable at the rate applicable to such merchandise on the date of importation, but in no case more than the duty and tax that would apply if the article were originally imported. In order to facilitate the ascertainment and collection of the duty provided for in this subparagraph, the Secretary of the Treasury is authorized to ascertain and specify the amounts of duty equal to drawback or internal-revenue tax which shall be applied to articles or classes or kinds of articles, and to exempt from the assessment of duty articles or classes or kinds of articles excepted under subparagraph (e) with respect to which the collection of such duty involves expense and inconvenience to the Government which is disproportionate to the probable amount of such duty."

FREE ENTRY PROVISIONS FOR TRAVELERS

SEC. 8. Paragraph 1798 of the Tariff Act of 1930, as amended (U. S. C., 1946, ed., title 19, sec. 1201, par. 1798), is further amended to read as follows:

"PAR. 1798. (a) Professional books, implements, instruments, and tools of trade, occupation, or employment, when imported by or for the account of any person arriving in

the United States by whom or for whose account they were taken abroad.

"(b) In the case of any person arriving in the United States who is not a returning resident thereof

"(1) wearing apparel, articles of personal adornment, toilet articles, and similar personal effects; all the foregoing, if actually owned by and in the possession of such person abroad at the time of or prior to his departure for the United States, and if appropriate for his own personal use and intended only for such use and not for any other person nor for sale;

"(2) automobiles, trailers, aircraft, motorcycles, bicycles, baby carriages, boats, horsedrawn conveyances, horses, and similar means of transportation, and the usual equipment accompanying the foregoing; any of the foregoing imported in connection with the arrival of such person and to be used in the United States only for the transportation of such person, his family and guests, and such incidental carriage of articles as may be appropriate to his personal use of the conveyance; and

"(3) not exceeding $200 in value of articles accompanying such a person who is in transit to a place outside United States customs territory and who will take the articles with him to such place.

"(c) In the case of any person arriving in the United States who is a returning resident thereof

"(1) all personal and household effects taken abroad by him or for his account and brought back by him or for his account; and

"(2) articles (including not more than 1 wine gallon of alcoholic beverages and not more than 100 cigars) acquired abroad as an incident of the journey from which he is returning, for his personal or household use, but not imported for the account of any other person nor intended for sale, if declared in accordance with regulations of the Secretary of the Treasury, up to but not exceeding in aggregate value

"(A) $200, if such person arrives from a contiguous country which maintains a free zone or free port (see subparagraph (d)), or arrives from any other country after having remained beyond the territorial limits of the United States for a period of not less than 48 hours, and in either case has not claimed an exemption under this subdivision (A) within the 30 days immediately preceding his arrival; and

"(B) $300 in addition, if such person has remained beyond the territorial limits of the United States for a period of not less than 12 days and has not claimed an exemption under this subdivision (B) within the 6 months immediately preceding his arrival.

"(d) In the case of persons arriving from a contiguous country which maintains a free zone or free port, if the Secretary of the Treasury deems it necessary in the public interest and to facilitate enforcement of the requirement that the exemption shall apply only to articles acquired as an incident of the foreign journey, he shall prescribe by regulation or instruction, the application of which may be restricted to one or more ports of entry, that the exemption authorized by subdivision (2) (A) of subparagraph (c) shall be allowed only to residents who have remained beyond the territorial limits of the United States for not less than a specified period, not to exceed 24 hours, and after the expiration of 90 days after the date of such regulation or instruction, allowance of the said exemption shall be subject to the limitations so prescribed.

"(e) Any article imported to replace a like article of comparable value previously exempted from duty under subdivision (c) of this paragraph shall be allowed free entry if the article previously exempted shall have been exported, under such supervision as the Secretary may prescribe, within 60 days after its importation because it was found by the importer to be unsatisfactory.

"(f) All articles exempted by this paragraph from the payment of duty shall be exempted from the payment of any internalrevenue tax imposed upon or by reason of importation.

"(g) If any jewelry or similar articles of personal adornment having a value of $300 or more which have been exempted from duty under subdivision (1) of subparagraph (b) or any article which has been exempted from duty under subdivision (2) (B) of subparagraph (c) is sold within 3 years after the date of importation, or if any article which has been exempted from duty under subdivision (2) of subparagraph (b) is sold within 1 year after the date of importation, without prior payment to the United States of the duty which would have been payable at the time of entry if the article had been entered without the benefit of this paragraph, such article, or its value (to be recovered from the importer), shall be subject to forfeiture. A sale pursuant to a judicial order or in liquidation of the estate of a decedent shall not be subject to the provisions of this subparagraph.

"(h) The Secretary of the Treasury shall prescribe methods and regulations for carrying out the provisions of this paragraph. No exemption provided for in this paragraph shall be applied to an article which is not declared in accordance with such regulations."

FREE ENTRY FOR NONCOMMERCIAL EXHIBITIONS

SEC. 9. (a) Paragraph 1809 of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1201, par. 1809), is amended by inserting "within 5 years after the date of entry hereunder" after "used contrary to this provision"; by inserting "within such 5-year period" after "at any time"; and by deleting "and the preceding."

(b) The conditions of any bond in force on the effective date of this act in respect of articles previously entered under the provisions of paragraph 1809 or the corresponding provisions of any Tariff Act prior to the Tariff Act of 1930 shall be deemed to have been satisfied upon the effective date of this act or upon the expiration of 5 years from the date such articles were entered, whichever is later, except with respect to any violation which has occurred or which shall have occurred before such time.

TEMPORARY FREE ENTRY FOR SAMPLES AND
OTHER ARTICLES UNDER BOND

SEC. 10. (a) (1) The part of section 308 of the Tariff Act of 1930, as amended (U. S. C., 1946 ed., title 19, sec. 1308), following the heading and preceding the numbered items is amended to read as follows:

"The following articles, when not imported for sale or for sale on approval, may be admitted into the United States under such rules and regulations as the Secretary of the Treasury may prescribe, without the payment of duty, under bond for their exportation within 1 year from the date of importation, which period, in the discretion of the Secretary of the Treasury, may be. extended, upon application, for one or more further periods which, when added to the initial 1 year, shall not exceed a total of 3 years:".

(2) The amendment made by paragraph (1) shall be effective with respect to articles imported before or after this section is enacted.

(b) Section 308 (3) of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1308 (3)) is amended by inserting immediately after the word "Samples" the following: "(but not including photoengraved printing plates imported to be reproduced)".

(c) Section 308 (4) of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1308 (4)) is amended to read as follows:

"(4) Articles intended solely for testing, experimental, or review purposes, including plans, specifications, drawings, blueprints,

photographs, and similar articles for use in connection with experiments or for study, and upon satisfactory proof that any such article has been destroyed because of its use for any such purpose, the obligation under such bond to export such articles shall be treated as satisfied;".

(d) Section 308 (5) of the Tariff Act of 1930, as amended (U. S. C., 1946 ed., title 19, sec. 1308 (5)), is further amended to read as follows:

"(5) Automobiles, motorcycles, bicyles, airplanes, airships, balloons, boats, racing shells, and similar vehicles and craft, and the usual equipment of the foregoing; all the foregoing which are brought temporarily into the United States by nonresidents for the purpose of taking part in races or other specific contests;".

(e) Section 308 (7) of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1308 (7)), is amended to read as follows:

"(7) Containers for compressed gases, filled or empty, and containers or other articles in use for covering or holding merchandise (including personal or household effects) during transportation and suitable for reuse for that purpose;".

(f) Section 308 of the Tariff Act of 1930, as amended (U. S. C., 1946 ed., title 19, sec. 1308), is further amended by changing the period at the end thereof to a semicolon and adding the following new subdivisions:

"(10) Animals and poultry brought into the United States for the purpose of breeding, exhibition, or competition for prizes, and the usual equipment therefor:

"(11) Theatrical scenery, properties, and apparel brought into the United States by proprietors or managers of theatrical exhibitions arriving from abroad for temporary use by them in such exhibitions; and

"(12) Works of art, drawings, engravings, photographic pictures, and philosophical and scientific apparatus brought into the United States by professional artists, lecturers, or scientists arriving from abroad for use by them for exhibition and in illustration, promotion, and encouragement of art, science, or industry in the United States."

(g) Paragraph 1607 of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1201, par. 1607), is amended to read as follows:

“PAR. 1607. (a) Teams of animals, including their harness and tackle, and the wagons or other vehicles actually owned by persons emigrating from foreign countries to the United States with their families, and in actual use for the purpose of such emigration, under such regulations as the Secretary of the Treasury may prescribe.

"(b) Wild animals and birds intended for exhibition in zoological collections for scientific or educational purposes, and not for sale or profit."

(h) Paragraph 1747 of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1201, par. 1747), is amended by changing the second semicolon to a period and deleting the remainder of the paragraph.

(i) Paragraph 1808 of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1201, par. 1808) is repealed.

SUPPLIES AND EQUIPMENT FOR VESSELS AND AIRCRAFT

SEC. 11. (a) Subsections (a) and (b) of section 309 of the Tariff Act of 1930, as amended (U. S. C., 1946 ed., title 19, sec. 1309 (a) and (b)), relating to articles for certain vessels and aircraft, are further amended to read as follows:

"(a) Exemption From Duties and Taxes: Articles of foreign or domestic origin may be withdrawn, under such regulations as the Secretary of the Treasury may prescribe, from any customs bonded warehouse, from continuous customs custody elsewhere than in a bonded warehouse, or from a foreign-trade zone free of duty and internal-revenue tax, or from any internal-revenue bonded warehouse, from any brewery, or from any winery

premises or bonded premises for the storage of wine, free of internal-revenue tax

"(1) for supplies (not including equipment) of (A) vessels or aircraft operated by the United States, (B) vessels of the United States employed in the fisheries or in the whaling business, or actually engaged in foreign trade or trade between the Atlantic and Pacific ports of the United States or between the United States and any of its possessions, or (C) aircraft registered in the United States and actually engaged in foreign trade or trade between the United States and any of its possessions; or

"(2) for supplies (including equipment) or repair of (A) vessels of war of any foreign nation, or (B) foreign vessels employed in the fisheries or in the whaling business, or actually engaged in foreign trade or trade between the United States and any of its possessions, where such trade by foreign vessels is permitted; or

"(3) for supplies (including equipment), ground equipment, maintenance, or repair of aircraft registered in any foreign country and actually engaged in foreign trade or trade between the United States and any of its possessions, where trade by foreign aircraft is permitted. With respect to articles for ground equipment, the exemption hereunder shall apply only to duties and to taxes imposed upon or by reason of importation.

"(b) Drawback: Articles withdrawn from bonded warehouses, bonded manufacturing warehouses, continuous customs custody elsewhere than in a bonded warehouse, or from a foreign-trade zone, and articles of domestic manufacture or production, laden as supplies upon any such vessel or aircraft of the United States or laden as supplies (including equipment) upon, or used in the maintenance or repair of, any such foreign vessel or aircraft, shall be considered to be exported within the meaning of the drawback provisions of this act.”

(b) Section 317 (b) of the Tariff Act of 1930, as amended (U. S. C., 1946 ed., title 19, sec. 1317 (b)), is amended to read as follows:

"(b) The shipment or delivery of any merchandise for use as supplies (including equipment) upon, or in the maintenance or repair of any vessel or aircraft described in subdivision (2) or (3) of section 309 (a) of this act, or for use as ground equipment for any such aircraft, shall be deemed an exportation within the meaning of the customs and internal-revenue laws applicable to the exportation of such merchandise without the payment of duty or internal-revenue tax. With respect to merchandise for use as ground equipment, such shipment or delivery shall not be deemed an exportation within the meaning of the internal-revenue laws relating to taxes other than those imposed upon or by reason of importation."

(c) Section 3115 of the Revised Statutes, as amended (U. S. C., 1946 ed., title 19, sec. 258), is further amended by

(1) striking out the comma at the end of paragraph (2) and inserting in lieu thereof "; or" and inserting after paragraph (2) the following new paragraph:

"(3) that such equipments, or parts thereof, or materials, or labor, were used as dunnage for cargo, or for the packing or shoring thereof, or in the erection of bulkheads or other similar devices for the control of bulk cargo, or in the preparation of tanks for the carriage of liquild cargo;"; and

(2) striking out "such equipments" the last place it appears in such section and inserting in lieu thereof "such equipments or parts thereof or materials."

DRAWBACK

SEC. 12. (a) Section 313 (b) of the Tariff Act of 1930, as amended (U. S. C., 1946 ed., title 19, sec. 1313 (b)), is further amended by deleting "one year" and substituting therefor "three years."

(b) Section 313 (c) of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1313

(c)), is amended by inserting "or shipped without the consent of the consignee" after "sample or specifications"; by deleting "thirty days" and substituting therefor "ninety days"; and by inserting "unless the Secretary authorizes in writing a longer time", following "after release from customs custody,”.

(c) Section 313 of the Tariff Act of 1930, as amended (U. S. C., 1946 ed., title 19, sec. 1313), is further amended by revising subsections (h) and (i) thereof to read as follows:

"(h) Time limitation on exportation: No drawback shall be allowed under the provisions of this section unless the completed article is exported within 5 years after importation of the imported merchandise.

"(i) Regulations: Allowance of the privileges provided for in this section shall be subject to compliance with such rules and regulations as the Secretary of the Treasury shall prescribe, which may include, but need not be limited to, the fixing of a time limit

within which drawback entries or entries for

refund under any of the provisions of this section or section 309 (b) of this act shall be filed and completed, and the designation of the person to whom any refund or payment of drawback shall be made."

ADMINISTRATIVE EXEMPTION

SEC. 13. Section 321 of the Tariff Act of 1930, as amended (U. S. C., 1946 ed., title 19, sec. 1321), is amended to read as follows: "SEC. 321. Administrative exemptions.

"(a) The Secretary of the Treasury, in order to avoid expense and inconvenience to the Government disproportionate to the

amount of revenue that would otherwise be collected, is hereby authorized, under such regulations as he shall prescribe, to

"(1) disregard a difference of less than $3 between the total estimated duties or taxes deposited, or the total duties or taxes tentatively assessed, with respect to any entry of merchandise and the total amount of duties or taxes actually accruing thereon; and

"(2) admit articles free of duty and of any tax imposed on or by reason of importation, but the aggregate value of articles imported by one person on one day and exempted from the payment of duty shall not exceed

“(A) $10 in the case of articles sent as bona fide gifts from persons in foreign countries to persons in the United States, or

"(B) $10 in the case of articles accompanying, and for the personal or household use of, persons arriving in the United States who are not entitled to any exemption from duty or tax under paragraph 1798 (c) (2) of this act, or

"(C) $1 in any other case.

"The privilege of this subdivision (2) shall not be granted in any case in which merchandise covered by a single order or contract is forwarded in separate lots to secure the benefit of this subdivision (2).

"(b) The Secretary of the Treasury is authorized by regulations to diminish any dollar amount specified in subsection (a) and to prescribe exceptions to any exemption provided for in such subsection whenever he finds that such action is consistent with the purpose of such subsection or is necessary for any reason to protect the revenue or to prevent unlawful importations."

INTERNATIONAL TRAFFIC AND RESCUE WORK

SEC. 14. The Tariff Act of 1930, as amended, is further amended by adding immediately following section 321 (U. S. C., 1946 ed., title 19, sec. 1321) a new section reading as follows:

"SEC. 322. International traffic and rescue work.

"(a) Vehicles and other instruments of international traffic, of any class specified by the Secretary of the Treasury, shall be granted the customary exceptions from the application of the customs laws to such ex

tent and subject to such terms and conditions as may be prescribed in regulations or instructions of the Secretary of the Treasury.

"(b) The Secretary of the Treasury may provide by regulation or instruction for the admission, without entry and without the payment of any duty or tax imposed upon or by reason of importation, of—

"(1) aircraft, equipment, supplies, and spare parts for use in searches, rescues, investigations, repairs, and salvage in connection with accidental damage to aircraft;

"(2) fire-fighting and rescue and relief equipment and supplies for emergent temporary use in connection with conflagrations; and

"(3) rescue and relief equipment and supplies for emergent temporary use in connection with floods and other disasters. any articles admitted under the authority of this subsection and used otherwise than for a purpose herein expressed, or not exported in such time and manner as may be prescribed in the regulations or instructions herein authorized, shall be forfeited to the United States."

VALUE

SEC. 15. (a) Section 402 of the Tariff Act of 1930, as amended (U. S. C., 1946 ed., title 19, sec. 1402), is further amended to read as follows:

"SEC. 402. Value.

"(a) Basis.-Except as otherwise specifically provided for, the value of imported merchandise for the purposes of this act shall be

"(1) the export value;

"(2) if the export value cannot be determined satisfactorily, then the United States value;

"(3) if neither the export value nor the United States value can be determined satisfactorily, then the comparative value; or

"(4) if neither the export value, the United States value, nor the comparative value can be determined satisfactorily, then the constructed value; but

"(5) in the case of an article with respect to which there is in effect under section 336 a rate of duty based upon the American selling price of a domestic article, the value shall be the American selling price of such domestic article.

"(b) Export value: The export value of imported merchandise shall be the market value or the price, at the time of exportation to the United States of the merchandise undergoing appraisement, at which such or similar merchandise is freely sold, or in the absence of sales, offered for sale in the principal markets of the country of exportation, in the usual wholesale quantities and in the ordinary course of trade, for exportation to the United States, plus, when not included in such price, the cost of all containers and coverings of whatever nature and all other expenses incidental to placing the merchandise in condition, packed ready for shipment to the United States.

"(c) United States value: The United States value of imported merchandise shall be the price, at the time of exportation to the United States of the merchandise undergoing appraisement, at which such or similar imported merchandise is freely sold or, in the absence of sales, offered for sale in the principal market of the United States for domestic consumption, packed ready for delivery, in the usual wholesale quantities and in the ordinary course of trade, with allowances made for

"(1) any commission usually paid or agreed to be paid on merchandise secured otherwise than by purchase or agreement to purchase; or, on merchandise secured by purchase or agreement to purchase, the addition for profit and general expenses usually made by sellers in such market on imported merchandise of the same class or kind as the merchandise undergoing appraisement;