"(2) the usual costs of transportation and insurance and other usual expenses from the place of shipment to the place of delivery, not including any expense provided for in subdivision (1); and

"(3) the ordinary customs duties and other Federal taxes currently payable on such or similar merchandise by reason of its importation or Federal excise taxes on, or measured by the value of, such or similar merchandise, for which vendors at wholesale in the United States are ordinarily liable.

"If such or similar merchandise was not so sold or offered at the time of exportation of the merchandise undergoing appraisement, the United States value shall be determined, subject to the foregoing specifications of this subsection, from the price at which such or similar merchandise is so sold or offered at the earliest date after such time of exportation but before the expiration of 90 days after the importation of the merchandise undergoing appraisement.

"(d) Comparative value: The comparative value of imported merchandise shall be the equivalent of the export value as nearly as such equivalent may be determined by the appraiser on the basis of the export or United States value of other merchandise exported from the same country at the time the merchandise undergoing appraisement was exported which is comparable in construction and use with the merchandise undergoing appraisement, with appropriate adjustments for differences in size, material, construction, texture, or other differences.

"(e) Constructed value: The constructed value of imported merchandise shall be the sum of

"(1) the cost of materials and of fabrication or other processing of any kind employed in producing such or similar merchandise, at a time preceding the date of exportation of the merchandise undergoing appraisement which would ordinarily permit the production of that particular merchandise in the ordinary course of business;

“(2) an addition for general expenses and profit equal to that which producers in the country of production whose products are exported to the United States usually add in sales for exportation to the United States, in the usual wholesale quantities and in the ordinary course of trade, of merchandise of the same general class or kind as the merchandise undergoing appraisement; and

"(3) the cost of all containers and coverings of whatever nature, and all other expenses incidental to placing the merchandise undergoing appraisement in condition, packed ready for shipment to the United States.

"(f) American selling price: The American selling price of any article manufactured or produced in the United States shall be the price, including the cost of all containers and coverings of whatever nature and all other expenses incident to placing the merchandise in condition packed ready for delivery, at which such article is freely sold or, in the absence of sales, offered for sale for domestic consumption in the principal market of the United States, in the ordinary course of trade and in the usual wholesale quantities, or the price that the manufacturer, producer, or owner would have received or was willing to receive for such merchandise when sold for domestic consumption in the ordinary course of trade and in the usual wholesale quantities, at the time of exportation of the imported article.

"(g) Taxes: The value of imported merchandise determined in accordance with this section shall not include the amount of any internal tax, applicable within the country of origin or exportation, from which the merchandise undergoing appraisement has been exempted or has been or will be relieved by means of refund.

"(h) Definitions: As used in this section, the following terms shall have the meanings respectively indicated:

"(1) Freely sold or, in the absence of sales, offered for sale'-sold or, in the absence of sales, offered to all purchasers at wholesale, or to one or more selected purchasers at wholesale at a price not less than that at which it would be sold to all purchasers at wholesale, without restrictions as to the disposition or use of the merchandise by the purchaser, except restrictions as to such disposition or use which (A) are imposed or required by law, or (B) limit the price at which or the territory in which the merchandise may be resold, or (C) do not substantially affect the value of the merchandise to usual purchasers at wholesale.

"(2) Ordinary course of trade'-the conditions and practices which, for a reasonable time prior to the exportation of the merchandise undergoing appraisement, have been normal in the trade under consideration with respect to merchandise of the same class or kind as the merchandise undergoing appraisement.

"(3) Purchasers at wholesale'-purchasers who buy in the usual wholesale quantities

for industrial use or for resale otherwise than at retail; or, if there are no such purchasers, then all other purchasers for resale who buy in the usual wholesale quantities; or, if there are no purchasers in either of the foregoing categories, then all other purchasers who buy in the usual wholesale quantities. "(4) 'Such or similar merchandise'-the merchandise undergoing appraisement shall be considered 'such' merchandise; and other merchandise shall be considered 'such' merchandise if

"(A) it is identical in physical characteristics and was produced in the same country by the same person; or

"(B) when no value meeting the requirements of the definition of value under consideration can be determined under (A), the merchandise is identical in physical characteristics and was produced by another person in the same country.

Merchandise shall be considered 'similar' to the merchandise undergoing appraisement if it is not within the foregoing definition of 'such' merchandise but

"(C) it was produced in the same country as the merchandise undergoing appraisement, by the same person, of like materials, is used for the same purpose, and is of approximately equal commercial value; or

"(D) when no value meeting the requirements of the definition of value under consideration can be determined under (C), the merchandise is correspondingly similar and was produced by another person in the same country.

"(5) "Usual wholesale quantities'-the quantities usually sold in the class of transactions in which the greater aggregate quantity of the 'such or similar merchandise', in respect of which value is being determined, is sold in the market under consideration."

(b) Paragraph 27 (c) of the Tariff Act of 1930 (U. S. C., 1948 ed., title 19, sec. 1001, par. 27 (c) ), is amended by changing "subdivision (g)" to "subdivision (f)" and by changing "subdivision (e)" to "subdivision (c)."

(c) Paragraph 28 (c) of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1001, par. 28 (c)), is amended by changing "subdivision (g)" to "subdivision (f)", and by changing "subdivision (e)" to "subdivision (c)."

(d) Section 336 (b) of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1336 (b)), is amended by changing "section 402 (g)" to "section 402 (f).”

SIGNING AND DELIVERY OF MANIFESTS SEC. 16. Section 431 of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19 sec. 1431), is amended by designating the matter now therein as subsection (a) and by adding a new subsection to read as follows:

"(b) Whenever a manifest of articles or persons on board an aircraft is required for

customs purposes to be signed, or produced or delivered to a customs officer, the manifest may be signed, produced, or delivered by the pilot or person in charge of the aircraft, or by any other authorized agent of the owner or operator of the aircraft, subject to such regulations as the Secretary of the Treasury may prescribe. If any irregularity of omission or commission occurs in any way in respect of any such manifest, the owner or operator of the aircraft shall be liable for any fine or penalty prescribed by law in respect of such irregularity."

CERTIFIED INVOICES AND ENTRY OF MERCHANDISE

SEC. 17. (a) Section 482 (a) of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1482 (a)), is amended by substituting "required pursuant to section 484 (b) of this act to be certified" for "covering merchandise exceeding $100 in value" in the first clause.

(b) Section 484 (a) of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1484 (a)), is amended by deleting "48 hours" and substituting therefor “5 days."

(c) Section 484 (b) of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1484 (b)), is amended to read as follows:

"(b) Production of certified invoice: The Secretary of the Treasury shall provide by regulation for the production of a certified invoice with respect to such merchandise as he deems advisable and for the terms and conditions under which such merchandise may be permitted entry under the provisions of this section without the production of a certified invoice."

(d) Section 498 (a) (1) of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1948 (a) (1)) is amended to read as follows:

"(1) Merchandise, imported in the mails or otherwise, when the aggregate value of the shipment does not exceed such amount, not greater than $250, as the Secretary of the Treasury shall specify in the regulations, and the specified amount may vary for different classes or kinds of merchandise or different classes of transactions;".

(e) Section 498 (a) of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1498 (a)) is further amended by deleting subdivision (11) and substituting therefor a new subdivision to read as follows:

"(11) Merchandise within the provisions of paragraph 1631 of this act."

(f) The Act of June 8, 1896 (U. S. C., 1946 ed., title 19, secs. 472-475), is hereby repealed.

VERIFICATION OF DOCUMENTS

SEC. 18. Section 486 of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1486), is amended by changing the heading to read "SEC. 486. Aministration of oaths-verification of documents."

and by adding at the end thereof the following new subsection:

"(d) Verification in lieu of oath: The Secretary of the Treasury may by regulation prescribe that any document required by any law administered by the Customs Service to be under oath may be verified by a written declaration in such form as he shall prescribe, such declaration to be in lieu of the oath otherwise required."

AMENDMENT OF ENTRIES

SEC. 19. (a) Section 487 of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1487) is amended by deleting therefrom "or at any time before the invoice or the merchandise has come under the observation of the appraiser for the purpose of appraisement".

(b) Section 489 of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1489) is amended by deleting the first two paragraphs.

(c) Section 501 of the Tariff Act of 1930, as amended (U. S. C., 1946 ed., title 19, sec. 1501), is further amended by changing the period at the end of the first sentence to a comma and by inserting thereafter "or (3) in any case, if the consignee, his agent, or his attorney requests such notice in writing

before appraisement, setting forth a substantial reason for requesting the notice.", by inserting in the second sentence after "appraiser" the clause ", including all determinations entering into the same,", and by deleting the third sentence of the section.

(d) Section 503 of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1503);,, is amended by deleting subsection (b), bỵ redesignating subsection (c) as subsection (b), and by amending subsection (a) to read as follows:

"(a) General rule: Except as provided in section 562 of this act (relating to withdrawal from manipulating warehouses), the basis for the assessment of duties on imported merchandise subject to ad valorem rates of duty shall be the final appraised value."

(e) The act of July 12, 1932 (ch. 473, 47 Stat. 657; U. S. C., 1946 ed., title 19, sec. 1503a), is repealed.

(f) Section 562 of the Tariff Act of 1930, as amended (U. S. C., 1946 ed., title 19, sec. 1562), is further amended by changing the third sentence to read as follows: "The basis for the assessment of duties on such merchandise so withdrawn for consumption shall be the adjusted final appraised value, and if the rate of duty is based upon or regulated in any manner by the value of the merchandise, such rate shall be based upon or regulated by such adjusted final appraised value."

COMMINGLED MERCHANDISE

SEC. 20. Section 508 of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1508) is amended to read as follows:

"SEC. 508. Commingling of goods.

"(a) Whenever dutiable merchandise and merchandise which is free of duty or merchandise subject to different rates of duty are so packed together or mingled that the quantity or value of each class of such merchandise cannot be readily ascertained by the customs officers (without physical segregation of the shipment or the contents of any entire package thereof), by one or more of the following means: (1) Examination of a representative sample, (2) occasional verification of packing lists or other documents filed at the time of entry, or (3) evidence showing performance of commercial settlement tests generally accepted in the trade and filed in such time and manner as may be prescribed by regulations of the Secretary of the Treasury, and if the consignee or his agent shall not segregate the merchandise pursuant to subsection (b), then the whole of such merchandise shall be subject to the highest rate of duty applicable to any part thereof.

"(b) Every segregation of merchandise made pursuant to this section shall be accomplished by the consignee or his agent at the risk and expense of the consignee within 30 days after the date of personal delivery or mailing, by such employee as the Secretary of the Treasury shall designate, of written notice to the consignee that the merchandise is commingled, unless the Secretary authorizes in writing a longer time. Every such segregation shall be accomplished under customs supervision, and the compensation and expenses of the supervising customs officers shall be reimbursed to the Government by the consignee under such regulations as the Secretary of the Treasury may prescribe.

"(c) The foregoing provisions of this section shall not apply with respect to any part of a shipment if the consignee or his agent shall furnish, in such time and manner as may be prescribed by regulations of the Secretary of the Treasury, satisfactory proof (1) that such part (A) is commercially negligible, (B) is not capable of segregation without excessive cost, and (C) will not be segregated prior to its use in a manufacturing process or otherwise, and (2) that the commingling was not intended to avoid the payment of lawful duties or any part thereof. Any merchandise with respect to which such

proof is furnished shall be considered for all customs purposes as a part of the merchandise, subject to the next lower rate of duty (including a free rate), with which it is commingled.

"(d) The foregoing provisions of this section shall not apply with respect to any shipment if the consignee or his agent shall furnish, in such time and manner as may be prescribed by regulations of the Secretary of the Treasury, satisfactory proof (1) that the value of the commingled merchandise is less than the aggregate value would be if the shipment were segregated; (2) that the shipment is not capable of segregation without excessive cost and will not be segregated prior to its use in a manufacturing process or otherwise; and (3) that the commingling was not intended to avoid the payment of lawful duties or any part thereof. Any merchandise with respect to which such proof is furnished shall be considered for all customs purposes to be dutiable at the rate (including a free rate) applicable to the material present in greater quantity than any other material."

CORRECTION OF ERRORS AND MISTAKES SEC. 21. Subdivisions (1) and (2) of section 520 (c) of the Tariff Act of 1930, as amended (U. S. C., 1946 ed., title 19, sec. 1520 (c)), are further amended to read as follows:

"(1) a clerical error, mistake of fact, or other inadvertence not amounting to an error in the construction of a law, adverse to the importer and manifest from the record or established by documentary evidence, in any entry, liquidation, appraisement, or other customs transaction, when the error, mistake, or inadvertence is brought to the attention of the customs service within 1 year after the date of entry, appraisement, or transaction, or within 60 days after liquidation or exaction when the liquidation or exaction is made more than 10 months after the date of the entry, appraisement, or transaction; or

"(2) any assessment of duty on household or personal effects in respect of which an application for refund has been filed, with such employee as the Secretary of the Treasury shall designate, within 1 year after the date of entry."

CONVERSION OF CURRENCY

SEC. 22 (a) Section 25 of the act of August 27, 1894, as amended and reenacted (U. S. C., 1946 ed., title 31, sec. 372 (a)), is repealed, and section 522 of the Tariff Act of 1930 (U. S. C., 1946 ed., title 31, sec. 372) is amended to read as follows: "SEC. 522. Conversion of Currency

"(a) The Secretary of the Treasury shall keep current a published list, expressed in United States dollars, of the par values which he finds are maintained by foreign countries for their respective currencies. For the purposes of all provisions of the customs laws, whenever it is necessary to convert into an amount expressed in currency of the United States any amount expressed in a foreign currency for which such a par value was maintained for the date as of which the value or cost requiring conversion is to be determined, such conversion, except as specified in subsection (d), shall be made at such par value.

"(b) If no such par value was so maintained for such date, the conversion shall be made at the buying rate for the foreign currency in the New York market at noon on the date as of which the value or cost requiring conversion is to be determined, or, if banks are generally closed on such date in New York City, then the buying rate at noon on the last preceding business day. For the purposes of this subsection, such buying rate shall be the buying rate for cable transfers payable in the foreign currency in which the amount to be converted is expressed, and shall be determined by the Federal Reserve Bank of New York and certified to the Secretary of the Treasury, who

shall make it public at such times and to such extent as he shall deem necessary. In ascertaining such buying rate, such Federal Reserve bank may in its discretion (i) take into consideration the last ascertainable transactions and quotations, whether direct or through exchange of other currencies, and (2) if there is no market buying rate for such cable transfers, calculate such rate from actual transactions and quotations in demand or time bills of exchange or from the last ascertainable transactions and quotations outside the United States in or for exchange payable in United States currency or other currency.

"(c) If, pursuant to subsection (b), the Federal Reserve Bank of New York certifies more than one rate of exchange for a particular foreign currency for any date the conversion for customs purposes of amounts expressed in that currency for that date shall be made by applying the applicable rate or rates so certified which reflect effectively the value of that foreign currency in commercial transactions.

"(d) When there are one or more rates of exchange which vary by more than 5 percent from the par value for any foreign currency listed pursuant to subsection (a), the list shall so indicate. In that event such additional rates of exchange may be certified in the manner set forth in subsection (b) and the par value and any certified rates shall be applied in the manner prescribed in subsection (c).”

(b) Section 481 (a) of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1481 (a)) is amended by deleting subparagraph (7) and by renumbering subparagraphs (8), (9), and (10) as (7), (8), and (9).

(c) Section 481 (b) of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1481 (b) is amended by deleting ", stating whether gold, silver, or paper."

TRANSFERS OF GOODS IN BONDED WAREHOUSES

SEC. 23. (a) Section 557 (b) of the Tariff Act of 1930, as amended (U. S. C., 1946 ed., title 19, sec. 1557 (b)), is further amended to read as follows:

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"(b) The right to withdraw any merchandise entered in accordance with subsection (a) of this section for the purposes specified in such subsection may be transferred upon compliance with regulations prescribed by the Secretary of the Treasury and upon the filing by the transferee of a bond in such amount and containing such conditions as the Secretary of the Treasury shall prescribe. The bond shall include an obligation to pay, with respect to the merchandise the subject of the transfer, all unpaid regular, increased, and additional duties, all unpaid taxes imposed upon or by reason of importation, and all unpaid charges and exactions. Such transfers shall be irrevocable, shall relieve the transferor from all customs liability with respect to obligations assumed by the transferee under the bond herein provided for, and shall confer upon the transferee all rights to the privileges provided for in this section and in sections 562 and 563 of this act which were vested in the transferor prior to the transfer. The transferee shall also have the right to receive all lawful refunds of moneys paid by him to the United States with respect to the merchandise the subject of the transfer, but shall have no right to file any protest under section 514 of this act except as to decisions with respect to his rights under subsection (c) of this section or under section 562 or 563 of this act or against a decision as to the rate or amount of duty, tax, charge, or exaction when such rate or amount has been changed by statute or proclamation on or after the date of the transfer. The transferee shall have no right to file an appeal for reappraisement under section 501 of this act, except when subsequent to the transfer and before a withdrawal for consumption has been deposited for the merchandise, it has

been changed in condition pursuant to the. provisions of section 562 or 311 of this act in a manner which necessitates that it be appraised in its changed condition in order that the correct amount of duties may be assessed. No new or separate liquidation, reliquidation, or determination shall be made in the name of, or on behalf of, a transferee, except with regard to any matter which may arise under subsection (c) of this section or section 562

or 563 of this act when the transferee has invoked either of these sections, and in the case of a statutory or proclaimed change in the rate of duty, tax, charge, or exaction applicable to the merchandise the subject of

the transfer and effective on or after the date of the transfer. A transferee may further transfer the right to withdraw merchandise, subject to the provisions of this subsection relating to original transfers."

(b) Notwithstanding any other provision of this act, the foregoing subsection (a) shall be effective with respect to merchandise entered after the date of the enactment of this act and to merchandise which has been

entered before tha: date and is the subject of a transfer within the purview of section 557 (b) of the Tariff Act, as amended by this act, and made after the date of the enactment of this act.

CUSTOMS SUPERVISION

SEC. 24. The Tariff Act of 1930, as amended, is further amended by adding following

section 645 (U. S. C., 1946 ed., title 19, sec. 1645) a new section 646, reading as follows:

"SEC. 646. Customs supervision.

United States is exported for further processing, and

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(B) the exported article as processed out

side the United States, or the article which

results from the processing outside the United States, as the case may be, is returned to the United States for further processing, then such article may be returned upon the payment of a duty upon the value of such processing outside the United States at the rate or rates which would apply to such article itself if it were not within the purview of this subparagraph (g).

66 6

(3) This subparagraph (g) shall not apply to any article exported

"(A) from bonded warehouse or from continuous customs custody elsewhere than bonded warehouse with remission, abatement, or refund of duty.

"(B) with benefit of drawback through substitution or otherwise, or

"(C) for the purpose of complying with any law of the United States or regulation of any Federal agency requiring exportation.

"(4) For the purposes of this subparagraph (g), the value of repairs, alterations, or processing outside the United States shall be considered to be

"(A) the cost to the importer of such repairs, alterations, or processing, or

66 6

(B) if no charge is made, the value of such repairs, alterations, or processing,

as set out in the invoice and entry papers;

except that, if the Secretary of the Treasury

concludes that the amount so set out does not represent a reasonable cost or fair value, as the case may be, then the value of the termined in accordance with section 402 of this act. No appraisement of the imported article in its repaired, altered, or processed

is required to be done or maintained under the supervision of customs officers, such supervision may be direct and continuous or by occasional verification as may be required by regulations of the Secretary of the Treasury, or, in the absence of such regula

past, so that instead of having to send all of the employees home, they will just export this particular product over into the Canadian factory where they have the facilities in order to go ahead with the processing and the factory will continue to operate.

Mr. RILEY. Mr. Chairman, will the gentleman yield?

Mr. KNOX. I yield.

Mr. RILEY. Does not the gentleman think that a study of this situation and

informing the House as to all the de

tails and the far-reaching effects of this would be a better way to legislate rather than to bring it in with the misunderstanding which exists at the present time, and the doubt that goes with it?

Mr. KNOX. If there is any misunderstanding, I believe the new language of the amendment is very clear. If there is any article of metal, except precious metal, manufactured in the United States and exported for processing and returned to the United States for further processing, it comes within this amendment. That is the only thing it refers to, metal products. It does not extend to precious metals such as possibly watches, jewelry, and so on.

Mr. RILEY. Does the the gentleman think this would be setting a precedent which probably might lead to the processing of other manufactured articles in other countries?

Mr. KNOX. I would say not. This

to a determination of the rate or rates of duty applicable to such article'.

customs officer concerned shall direct."

SAVING CLAUSE

SEC. 25. Except as may be otherwise provided for in this act, the repeal of existing law or modifications thereof embraced in this

act shall not affect any act done, or any right accruing or accrued, or any suit or proceeding had or commenced in any civil or criminal case prior to such repeal or modification, but all liabilities under such laws

"(2) The amendment made by paragraph articles entered, or withdrawn from ware

house, for consumption on or after the day following the date of the enactment of this act and shall apply also to any such articles entered or withdrawn before that day with respect to which no assessment of duty has become final by reason of section 514 of the Tariff Act of 1930."

The

cally provided in this act, and may be enforced in the same manner as if such repeal or modification had not been made.

The Clerk read as follows:

Committee amendment offered by Mr. REED of New York:

Page 9, line 13, insert after "SEC. 7", the following: "(a)".

And on page 10, after line 13, insert the following:

"(b) (1) Paragraph 1615 (g) of the Tariff

nized.

Mr. REED of New York. Mr. Chairman, I yield to the gentleman from Michigan [Mr. KNOX].

Mr. KNOX. Mr. Chairman, once again I would like to make a few remarks relevant to the amendment which has been offered to the customs simplification bill. There is a precedent for the relief provided in this legislation since paragraph 1410 of the Tariff Act of 1930 provides similar relief to the publishing industry in the following language: "That exported books of domestic manufacturers when returned to the United States after having been advanced in value or improved in condition

title 19, sec. 1201, par. 1615 (g)), is further amended to read as follows:

"(g) (1) Any article exported from the United States for repairs or alterations may be returned upon the payment of a duty upon the value of the repairs or alterations at the rate or rates which would apply to the article itself in its repaired or altered condition if not within the purview of this subparagraph (g).

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(2) If

“(A) any article of metal (except precious metal) manufactured in the United States or subjected to a process of manufacture in the

means shall be dutiable only on the cost of materials added and the labor performed in the foreign country."

This amendment which I have offered does the very same thing that the Act now provides for books. It does it for metal products. It is something which I believe will expedite the manufacturing centers of Michigan especially where we are close to the Canadian border and where we possibly will avoid shutdowns in factories as we have in the

Mr. AUGUST H. ANDRESEN. Mr. Chairman, will the gentleman yield? Mr. KNOX. I yield.

Mr. AUGUST H. ANDRESEN. Would the gentleman's amendment include the assembling of automobiles for which

the parts were made in the United States and sent to Canada?

Mr. KNOX. No, that would not be processing of such parts.

Mr. AUGUST H. ANDRESEN. That would not be possible under your amendment?

Mr. KNOX. No, that would not be processing, and it would not be possible.

Mr. Chairman, in the general debate, I pointed out the fact that it was necessary at one time for a manufacturer in the city of Detroit to ship an article to Canada to the Algoma Steel Mills because that was the only place where any facilities were available to do this processing which was needed on this par

ticular product. That was the cause of a breakdown in the factory in the Detroit area.

Mr. Chairman, I do not believe I have anything further to offer on this amendment. I have tried to make it clear and I believe it is something which is in the best interests of our working men as well as the industries, and will result somewhat in helping to reduce the cost of these particular articles to the ultimate consumer. Nevertheless, if the industry is going to have to pay duty on

every product that is sent to a foreign country for processing, it means that they will have to pass that cost on to the ultimate consumer. So far as the laboring man is concerned, he certainly is protected, because the industry will continue to function while this processing is being done in a foreign country.

I believe there is no possibility that these particular products would ever be shipped to such countries as Belgium, Spain, Portugal, and so forth, because of the high transportation cost. In case of an emergency or a breakdown, we can still continue to operate and expedite the manufacture of any specific article without adverse effect as far as meeting the requirements of a contract is concerned, whether it be in the automobile industry or in some other defense industry.

The CHAIRMAN. gentleman has expired.

The time of the

Page 15, after line 12, insert the following: "COUNTERVAILING DUTIES

"SEC. 10. Section 303 of the Tariff Act of 1930 (U. S. C., 1946 ed., title 19, sec. 1303) is amended by adding immediately after the first sentence the following new 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'."

And amend the table of contents and renumber the remaining sections of the bill accordingly.

Mr. REED of New York. Mr. Chairman, I yield 5 minutes to the gentleman from Pennsylvania [Mr. EBERHARTER).

Mr. EBERHARTER. Mr. Chairman, the amendment offered by the gentleman from New York [Mr. REED] by direction of the Committee on Ways and Means, was approved by that committee. It is true, there was not a recorded vote, but it was approved by the committee.

The subject was considered in October, 1951, and reported in a bill which passed the House. I know of no objection being voiced at that time to the amendment whatsoever. I know of no objection being voiced to it when we had those hearings 12 years ago.

We had hearings on this bill and on this amendment. It was thoroughly studied by the committee on two different occasions. At the time of the last occasion it was approved by the

committee.

Mr. Chairman, this amendment was drawn this year by the Office of the Secretary of the Treasury and it was recommended for inclusion in this bill. The only reason it did not become law 2 years ago, in October, 1951, is because

the other body did not have time to take the other body did not have time to take up the measure.

Mr. Chairman, this is a matter which goes to the policy of the United States. Are we going to announce the policy of putting up and maintaining barriers to putting up and maintaining barriers to trade? That is the simple question that is involved.

Within the past couple of days I know that the Members have been flooded with telegrams from the National Association of Wool Manufacturers. If we are going to legislate according to the number of telegrams or letters we receive, then we are going against a policy of the United States which has been carried on for the past 20 years, a policy ried on for the past 20 years, a policy which is being followed or to which at least lip service has been given by the present administration, policy of "More trade, not aid." That was quite an issue in the campaign: More trade, not aid. If you are not going to follow that, if you are going to switch your policy, then defeat this amendment. policy, then defeat this amendment. Whatever is done by this committee, in my opinion, will go down in the RECORD as indicating its policy. If this amend

ment is defeated I would say that this

Congress will be on record as being op posed to the policy of more trade, not aid, as favoring higher and thicker walls against an expanded export trade on the part of the United States. As I said previously, it is one way to lose friends and make enemies. It is a matter of policy.

As I already said in general debate, the wool manufacturers have pulled the rug out from under the wool-growing States and are going to support a free greasy wool policy-that is their recommendation, board of directors' official recommendation. Shall we legislate because of telegrams and pressure in behalf of one industry; and not think of the harm or benefit that may accrue to agriculture, or general industry in the United States, which makes profits by reason of excess production over the necessities of this country. If you intend to develop and embrace that policy then defeat this amendment. What ever is the judgment of this Committee I hope the magnitude of this question will be considered by the members of this committee who are here today.

Mr. MILLER of Nebraska. Mr. Chairman, will the gentleman yield?

Mr. EBERHARTER. I yield. Mr. MILLER of Nebraska. Does the gentleman consider the provision of the present law giving the Secretary of the Treasury authority to impose duties equal to the subsidies granted by other governments, sufficient protection to the people of the United States?

Mr. EBERHARTER. I definitely do. The Secretary of the Treasury must find that a foreign country is giving a bounty to exports. He can very easily also find out within a few days whether or not an industry in this country is being injured. We should turn that question over to the Secretary of the Treasury. I would say to the gentleman from Kansas-he has asked for itof course I would not blame the gentleman very much for voting against the wishes of the present administration, but I would like to ask some of the gentle

men on this Republican side of the aisle whether they are going to vote against the wishes of the present administration, against the wishes of their Secretary of the Treasury, and against the wishes of their Secretary of State?

Mr. BYRNES of Wisconsin. Mr. Chairman, I rise in opposition to the amendment.

The CHAIRMAN. Is the gentleman opposed to the amendment?

Mr. BYRNES of Wisconsin. I am. The CHAIRMAN. The gentleman is recognized.

Mr. BYRNES of Wisconsin. Mr. Chairman, I trust the committee will turn down this amendment which has been offered by the committee and which was sponsored by the gentleman from Pennsylvania. In the first place, let us remember that the present machinery in our trade act to protect against subsidized foreign imports has been on our statute books since October 3, 1913. Section 303 of the Tariff Act of 1930 for all intents and purposes goes back to the act of October 3, 1913.

Let us realize just what we are doing here. In the first instance, we put on our statute books or in our tariff act a duty. We imposed a duty on the importation of some specific item. We do it so as to put our producers on a competitive basis with the foreign producers. Then our law goes further and in section 303, we say: If, however, a foreign producer is subsidized in such way as to overcome the effect of the duty which we put on the importation of that item, then the Secretary of the Treasury shall impose a countervailing duty in order to overcome the effect of the subsidy that this foreign producer has received.

The gentleman from Pennsylvania would say that is all right, but before the Treasury can impose a countervailing duty we are going to require that the industry affected come in and prove that it has been injured. We have had a lot of experience through the years with this difficult problem of proving injury. jury. Whether it is to prove it to the Secretary of the Treasury or prove it to the Secretary of State or prove it to the Tariff Commission, it is no simple job. It is not a job that can be done in 2 or 3 days. We have had injury cases pending before the Tariff Commission for months and months before an actual determination has been made of whether there has been an injury or threatened injury.

This particular amendment as proposed by the gentleman from Pennsylvania sets up no standards or test to be used in determining what injury shall be necessary to invoke the countervailing duties.

In my judgment, Mr. Chairman, if this matter should be considered at all it should be considered by itself on its own merits after there have been full hearings on the individual problem. We should permit those people who are affected and who are the opponents of this change to come in and prove their case and it should give the proponents, the Treasury, ample time to explain why they feel the change should be made. Certainly we should consider this amend