Volume 79 · 1017
Public Law 89–283
To provide for the implementation of the Agreement Concerning Automotive Products Between the Government of the United States of America and the Government of Canada, and for other purposes.
Approved October 21, 1965
Statutory text
AN ACT
To provide for the implementation of the Agreement Concerning Automotive Products Between the Government of the United States of America and the Government of Canada, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
TITLE I— SHORT TITLE AND PURPOSES
Section 101. short title
This Act may be cited as the “Automotive Products Trade Act of 1965”.
Sec. 102. purposes
The purposes of this Act are—
to provide for the implementation of the Agreement Concerning Automotive Products Between the Government of the United States of America and the Government of Canada signed on January 16, 1965 (hereinafter referred to as the “Agreement”), in order to strengthen the economic relations and expand trade in automotive products between the United States and Canada; and
to authorize the implementation of such other international agreements providing for the mutual reduction or elimination of duties applicable to automotive products as the Government of the United States may hereafter enter into.
TITLE II— BASIC AUTHORITIES
Sec. 201.
The President is authorized to proclaim the modifications
of the Tariff Schedules of the United States provided for in title IV of this Act.
At any time after the issuance of the proclamation authorized by subsection (a), the President is authorized to proclaim further modifications of the Tariff Schedules of the United States to provide for the duty-free treatment of any Canadian article which is original motor-vehicle equipment (as defined by such Schedules as modified pursuant to subsection (a)) if he determines that the importation of such article is actually or potentially of commercial significance and that such duty-free treatment is required to carry out the Agreement.
Sec. 202. implementation of other agreements
Whenever, after determining that such an agreement will afford mutual trade benefits, the President enters into an agree-ment with the government of a country providing for the mutual elimination of the duties applicable to products of their respective countries which are motor vehicles and fabricated components intended for use as original equipment in the manufacture of such vehicles, the President (in accordance with subsection (d)) is authorized to proclaim such modifications of the Tariff Schedules of the United States as he determines to be required to carry out such agreement.
Whenever, after having entered into an agreement with the government of a country providing for the mutual elimination of the duties applicable to products described in subsection (a), the President, after determining that such further agreement will afford mutual trade benefits, enters into a further agreement with such government providing for the mutual reduction or elimination of the duties applicable to automotive products other than motor vehicles and fabricated components intended for use as original equipment in the manufacture of such vehicles, the President (in accordance with subsection (d)) is authorized to proclaim such modifications of the Tariff Schedules of the United States as he determines to be required
to carry out such further agreement.
Before the President enters into the negotiation of an agreement referred to in subsection (a) or (b), he shall—
seek the advice of the Tariff (Commission as to the probable economic effect of the reduction or elimination of duties on industries producing articles like or directly competitive with those which may be covered by such agreement;
give reasonable public notice of his intention to negotiate
Publication in Federal Register.
such agreement (which notice shall be published in the federal Register) in order that any interested person may have an opportunity to present Iris views to such agency as the President shall designate, under such rules and regulations as the President may prescribe; and
seek information and advice with respect to such agreement from the Departments of Commerce, Labor, State, and the Treasury, and from such other sources as he may deem appropriate.
The President shall transmit to each House of the Congress
Agreements copies to Congress.
a copy of each agreement, referred to in subsection (a) or (b). The delivery to both Houses shall be on the same day and shall be made to each House while it is in session.
The President is authorized to issue any proclamation to carry
Proclamation.
out, any such agreement—
only after the expiration of the 60-day period following the date of delivery,
only if, between the date of delivery and the expiration of such 60-day period, the Congress has not adopted a concurrent resolution stating in substance that the Senate and House of Representatives disapprove of the agreement, and
in the ease of any agreement referred to in subsection (b) with any country, only if there is in effect a proclamation implementing an agreement with such country applicable to products described in subsection (a).
For purposes of paragraph (2), in the computation of the 60-day period there shall be excluded the days on which either House is not in session because of adjournment of more than 3 days t o a day certain or an adjournment of the Congress sine die.
This section shall cease to be in effect on the day after the date
Termination date.
of the enactment of this Act.
Sec. 203. effective date of proclamations
Subject to subsection (b), the President, is authorized, notwithstanding section 514 of the Tariff Act of 1930 (19 U.S.C., sec.
1514) or any other provision of law, to give retroactive effect to any proclamation issued pursuant to section 201 of this Act as of the earliest date after January 17, 1985, which he determines to be practicable.
In the case of liquidated customs entries, the retroactive effect pursuant to subsection (a) of any proclamation shall apply only upon request therefor filed with the customs officer concerned on or before the 90th day after the date of such proclamation and subject to such other conditions as the President may specify.
Sec. 204. termination of proclamations
The President is authorized at any time to terminate, in whole or in part, any proclamation issued pursuant to section 201 or 202 of this Act.
Sec. 205. special reports to congress
No later than August 31, 1968, the President shall submit to the Senate and the House of Representatives a special report on the comprehensive review called for by Article IV(c) of the Agreement. In such report he shall advise, the Congress of the progress made toward the achievement of the objectives of Article I of the Agreement.
Whenever the President finds that any manufacturer has entered into any undertaking, by reason of governmental action, to increase the Canadian value added of automobiles, buses, specified commercial vehicles, or original equipment parts produced by such manufacturer in Canada after August 31, 1968, he shall report such finding to the Senate and the House of Representatives. The President shall also report whether such undertaking is additional to undertakings agreed to in letters of undertaking submitted by such manufacturer before the date of the enactment of this Act.
The reports provided for in subsections (a) and (b) of this section shall include recommendations for such further steps, including legislative action, if any, as may be necessary for the achievement of the purposes of the Agreement and this Act.
TITLE III— TARIFF ADJUSTMENT AND OTHER ADJUSTMENT ASSISTANCE
Sec. 301. general authority
Subject to section 302 of this Act, a petition may be filed for tariff adjustment or for a determination of eligibility to apply for adjustment, assistance under title III of the Trade Expansion Act of
1962 (19 U.S.C., sec. 1901–1991) as though the reduction or elimination of a duty proclaimed by the President pursuant to section 201 or 202 of this Act were a concession granted under a trade agreement referred to in section 301 of the Trade Expansion Act of 1962.
Sec. 302. special authority during transitional period under the agreement
After the 90th day after the date of the enactment of this Act and before July 1, 1968, a petition under section 301 of this Act for a determination of eligibility to apply for adjustment assistance may be filed with the President by—
a firm which produces an automotive product, or its representative; or
a group of workers in a firm which produces an automotive product, or their certified or recognized union or other duly authorized representative.
After a petition is filed by a firm or group of workers under
Presidential determination.
subsection (a), the President shall determine whether—
dislocation of the firm or group of workers has occurred or threatens to occur;
production in the United States of the automotive product concerned produced by the firm, or an appropriate subdivision thereof, and of the automotive product like or directly competitive therewith, has decreased appreciably; and
imports into the United States from Canada of the Canadian automotive product like or directly competitive with that produced by the firm, or an appropriate subdivision thereof, have increased appreciably; or
exports from the United States to Canada of the United States automotive product concerned produced by the firm, or an appropriate subdivision thereof, and of the United States automotive product like or directly competitive therewith, have decreased appreciably, and the decrease in such exports is greater than the decrease, if any, in production in Canada of the Canadian automotive product like or directly competitive with the United States automotive product being exported.
If the President makes an affirmative determination under paragraphs (1), (2), and (3) of subsection (b), with respect to a firm or group of workers, he shall promptly certify that as a result of its dislocation the firm or group of workers is eligible to apply for adjustment assistance, unless the President determines that the operation of the Agreement has not been the primary factor in causing or threatening to cause dislocation of the firm or group of workers.
If the President makes an affirmative determination under paragraph (1) but a negative determination under paragraph (2) or (3) of subsection (b), with respect to a firm or group of workers, the President shall determine whether the operation of the Agreement has nevertheless been the primary factor in causing or threatening to cause dislocation of the firm or group of workers. If the President makes such an affirmative determination, he shall promptly certify that, as a result of its dislocation the firm or group of workers is eligible to apply for adjustment assistance.
In order to provide the President with a factual record on
Investigation and report by Tariff Commission.
the basis of which he may make the determinations referred to in subsections (b), (c), and (d) with respect to a firm or a group of workers, the President shall promptly transmit to the Tariff (Commission a copy of each petition filed under subsection (a) and, not later than 5 days after the date on which the petition is filed, shall request the Tariff Commission to conduct an investigation related to questions of fact relevant to such determinations and to make a report of the facts disclosed by such investigation. In his request, the President may specify the particular kinds of data which he deems appropriate. Upon receipt of the President’s request, the Tariff Commission shall
Publication in Federal Register.
promptly institute the investigation and promptly publish notice thereof in the Federal Register.
In the course of each investigation conducted under paragraph
Public hearings.
(1), the Tariff Commission shall, after reasonable notice, hold a public hearing, if such hearing is requested (not later than 10 days after the date of the publication of its notice under paragraph (1)) by the petitioner or any other person showing a proper interest in the subject matter of the investigation, and shall afford interested persons an opportunity to be present, to produce evidence, and to be heard at such hearing.
Not later than 50 days after the date on which it receives the request, of the President under paragraph (1), the Tariff Commission shall transmit to the President a report of the facts disclosed by its investigation, together with the transcript of the hearing and any briefs which may have been submitted in connection with such investigation.
The President shall make each final determination under subsection (b), (c), or (d) with respect to a firm or group of workers only after he has sought advice from the Departments of Commerce, Labor, and the Treasury, the Small Business Administration, and such other agencies as he may deem appropriate.
The President shall make each such final determination not later than 15 days after the date on which he receives the Tariff Commission’s report, unless, within such period, the President requests additional factual information from the Tariff Commission. In this event, the Tariff Commission shall, not later than 25 days after the date on which it receives the President’s request, furnish such additional factual information in a supplemental report, and the President shall make his final determination not later than 10 days after the date on which he receives such supplemental report.
The President shall promptly publish in the Federal Register a summary of each final determination under this section.
Any certification with respect to a group of workers made by the President under this section shall—
specify the date on which the dislocation began or threatens to begin: and
be terminated by the President whenever he determines that the operation of the Agreement is no longer the primary factor in causing separations from the firm or subdivision thereof, in which case such determination shall apply only with respect to separations occurring after the termination date specified by the President.
Any certification with respect to a firm or a group of workers or any termination of such certification, including the specification of a date in such certification or termination, made by the President under this section shall constitute a certification or termination, including the specification of a date therein, under section 302 of the
Tax assistance.
Trade Expansion Act of 1962 (19 U.S.C., sec. 1902) for purposes of chapter 2 or 3 of title III of that Act.
If a film which has been certified under this section applies for tax assistance as provided by section 317 of the Trade Expansion
Act of 1962, the reference in subsection (a)(2) of such section 317 to a trade or business which was seriously injured by increased imports which the Tariff Commission has determined to result, from concessions granted under trade agreements shall be treated as referring to a trade or business which was seriously injured by the operation of the Agreement.
Notwithstanding any provision of chapter 3 of title III of the Trade Expansion Act of 1962 or of this title, applications based on any certification made by the President under this section for—
trade readjustment allowances for weeks of unemployment beginning after January 17, 1965, and before the 90th day after the date of the enactment of this Act, and
relocation allowances for relocations occurring after January 17, 1965, and before such 90th day,
shall be determined in accordance with regulations prescribed by the Secretary of Labor.
The President is authorized to exercise any of his functions under this section through, such agency or other instrumentality of the United States Government as he may direct and in conformity with such rules or regulations as he may prescribe.
For purposes of this section—
Definitions.
The term “automotive product” means a motor vehicle or a fabricated component to be used as original equipment in the manufacture of motor vehicles.
The term “dislocation” means—
in the case of a firm, injury to the firm, which may be evidenced by such conditions as idling of productive facilities, inability to operate at a level of reasonable profit, or unemployment or underemployment, and which is of a serious nature; and
in the case of a group of workers, unemployment or underemployment of a significant number or proportion of the workers of a firm or an appropriate subdivision thereof.
The term “firm” includes an individual proprietorship, partnership, joint venture, association, corporation (including a development corporation), business trust, cooperative, trustees in bankruptcy, and receivers under decree of any court. A firm, together with any predecessor, successor, or affiliated firm controlled or substantially beneficially owned by substantially the same persons, may be considered a single firm where necessary to prevent unjustifiable benefits.
The term “operation of the Agreement” includes governmental or private actions in the United States or Canada directly related to the conclusion or implementation of the Agreement.
Sec. 303. adjustment assistance belated to other agreements
At the time the President transmits to the Congress a copy of any agreement, pursuant to section 202(d) (1), he shall recommend to the Congress such legislative provisions concerning adjustment assistance to firms and workers as he determines to be appropriate in light of the anticipated economic impact of the reduction or elimination of duties provided for by such agreement.
Sec. 304. authorization of appropriations
There are hereby authorized to be appropriated such sums as may be necessary from time to time to carry out the provisions of this title, which sums are authorized to be appropriated to remain available until expended.
TITLE IV— MODIFICATIONS OF TARIFF SCHEDULES OF THE UNITED STATES
Sec. 401. entry into force and status of modifications
The modifications of the Tariff Schedules of the United States provided for in this title shall not enter into force
except as proclaimed by the President pursuant to section 201(a) of this Act.
The rates of duty in column numbered 1 of the Tariff Schedules of the United States which are modified pursuant to section 201(a) of this Act shall be treated—
as not having the status of statutory provisions enacted by the Congress, but
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.
Sec. 402. references to tariff schedules
Whenever in this title a modification is expressed in terms of a modification of an item or other provision, the reference shall be considered to be made to an item or other provision of the Tariff Schedules of the United States (19 U.S.C., sec. 1202). Each page reference “(p.)” in this title refers to the page on which the item or provision referred to appears both in part II of the Federal Register for August 17, 1963, and in volume 77A of the United States Statutes at Large.
Sec. 403. definition of canadian article
In general headnote 3 (pp. 11 and 12) redesignate paragraphs (d), (e), and (f) as paragraphs (e), (f), and (g), respectively, and insert a new paragraph (d) as follows:
“(d) Products of Canada.
“(i) Products of Canada imported into the customs territory of the United States, whether imported directly or indirectly, are subject to the rates of duty set forth in column numbered 1 of the schedules. The rates of duty for a Canadian article, as defined in subdivision (d) (ii) of this headnote, apply only as shown in the said column numbered 1.
“(ii) The term ‘Canadian article’, as used in the schedules, means an article which is the product of Canada, but does not include any article produced with the use of materials imported into Canada which are products of any foreign country (except materials produced within the customs territory of the United States), if the aggregate value of such imported materials when landed at the Canadian port of entry (that is, the actual purchase price, or, if not purchased, the export value, of such materials, plus, if not included therein, the cost of transporting such materials to Canada but exclusive of any landing cost and Canadian duty) was—
“(A) with regard to any motor vehicle or automobile truck tractor entered on or before December 31, 1967, more than 60 percent of the appraised value of the article imported into the customs ‘territory of the United States; and
“(B) with regard to any other article (including any motor vehicle or automobile truck tractor entered after December 31, 1967), more than 50 percent of the appraised value of the article imported into the customs territory of the United States.”
Sec. 404. definition of original motor-vehicle equipment
In the headnotes for subpart B, part 6, schedule 6 add after headnote 1 (p. 325) the following new headnote:
“2. Motor Vehicles and Original Equipment Therefor of Canadian Origin.—
(a) The term ‘original motor-vehicle equipment’, as used in the schedules with reference to a Canadian article (as defined by general headnote 3(d)), means such a Canadian article which has been obtained from a supplier in Canada under or pursuant to a written order, contract, or letter of intent of a bona fide motor-vehicle manufacturer in the United States, and which is a fabricated component intended for use as original equipment in the manufacture in the United States of a motor vehicle, but the term does not include trailers or articles to be used in their manufacture.
“(b) The term ‘motor vehicle’, as used in this headnote, means a
“Motor vehicle.”
motor vehicle of a kind described in item 692.05 or 692,10 of this subpart (excluding an electric trolley bus and a three-wheeled vehicle)
or an automobile truck tractor.
“(c) The term ‘bona fide motor-vehicle manufacturer’, as used in
“Bona fide motor-vehicle manufacturer.”
this headnote, means a person who, upon application to the Secretary of Commerce, is determined by the Secretary to have produced no fewer than 15 complete motor vehicles in the United States during the previous 12 months, and to have installed capacity in the United States to produce 10 or more complete motor vehicles per 40-hour week. The Secretary’ of Commerce shall maintain, and publish from time to
Publication in Federal Register.
time in the Federal Register, a list of the names and addresses of bona fide motor-vehicle manufacturers.
“(d) If any Canadian article accorded the status of original motor-vehicle equipment is not so used in the manufacture in the United States of motor vehicles, such Canadian article or its value (to be recovered from the importer or other person who diverted the article from its intended use as original motor-vehicle equipment) shall be subject to forfeiture, unless at the time of the diversion of the Canadian article the United States Customs Service is notified in writing, and, pursuant to arrangements made with the Service—
“(i) the Canadian article is, under customs supervision, destroyed or exported, or
“(ii) duty is paid to the United States Government in an amount equal to the duty which would have been payable at the time of entry if the Canadian article had not been entered as original motor-vehicle equipment.”
Sec. 405. identification of automotive products
Redesignate item 692.25 (p. 326) as 692.27; in headnote 1(b) of subpart B, part 6, schedule 6 (p. 325) substitute “item 692.27” in lieu of “item 692.25”; and insert in proper numerical sequence new items as follows:
| “ | 692. 06 | If Canadian article, but not including any electric trolley bus, three-wheeled vehicle, or trailer accompanying an automobile truck tractor (see general headnote 3(d)) | Free | ” | |
| 692. 11 | If Canadian article, but not Including any three-wheeled vehicle (see general headnote 3(d)) | Free | ” | ||
| “ | 602. 21 | Chassis, if Canadian article, except chassis for an electric trolley bus, or a three-wheeled vehicle; bodies (including cabs), if Canadian article and original motor-vehicle equipment (sec headnote 2 of this subpart) | Free | ” | |
| “ | 692. 23 | Chassis, if Canadian article, except chassis designed primarily for a vehicle described in item 692.16 or a three-wheeled vehicle: bodies (Including cabs), if Canadian article and original motor-vehicle equipment (see headnote 2 of this subpart) | Free | ” | |
| “ | 692. 25 | If Canadian article and original motor-vehicle equipment (see headnote 2 of this subpart) | Free | ” | |
| “ | 692. 28 | Automobile truck tractors, if Canadian article; other articles, if Canadian article and original motor-vehicle equipment (see headnote 2 of this subpart) | Free | ” |
Insert in proper numerical sequence new items as follows:
| “ | 361. 90 | Any article described in the foregoing items 360.20 to 360.70, inclusive, 300.30, 361.60, or 361.95, if Canadian article and original motor-vehicle equipment (see headnote 2, part 6B, schedule 6) | Free | ” | |
| “ | 516. 98 | Any article described in the foregoing items 516.71 to 516.76, inclusive, or 516.94, if Canadian article and original motor-vehicle equipment (see headnote 2, part 6B, schedule 6) | Free | ” | |
| “ | 646. 79 | Any article described in the foregoing item 6646.20 and items 646.40 to 646.78, Inclusive (except 646.45 and 646.47), if Canadian article and original motor-vehicle equipment (see headnote 2, part 6B, schedule 6) | Free | ” | |
| “ | 652. 39 | Any article described in the foregoing items 652.12 to 652.36, inclusive, if Canadian article and original motor-vehicle equipment (see headnote 2, part 6B, schedule 6) | Free | ” | |
| “ | 658. 10 | Any article described in the foregoing items 657.09 to 658.00, inclusive, if Canadian article and original motor-vehicle equipment (see headnote 2, part 6B, schedule 6) | Free | ” | |
| “ | 682. 65 | Any article described in the foregoing items 682.10 to 682.60, Inclusive (except 682.56), if Canadian article and original motor-vehicle equipment (see headnote 2, part 6B, schedule 6) | Free | ” | |
| “ | 685. 55 | Any article described in the foregoing items 685.20 to 685.50, inclusive, if Canadian article and original motor-vehicle equipment (see headnote 2, part 6B, schedule 6) | Free | ” | |
| “ | 721. 20 | Any article in the foregoing items covering clocks, clock movements, clock cases and dials and parts thereof, plates (730.67), assemblies and subassemblies for clock movements, and other parts for clock movements, if Canadian article and original motor-vehicle equipment (see headnote 2, part 6B, schedule 6) | Free | ” |
Insert in proper numerical sequence new items 355.27, 389.80, 728.30, 745.80, and 774.70, each having an article description and rate as follows:
| “ | Any article described in the foregoing provisions of this subpart, if Canadian article and original motor-vehicle equipment (see headnote 2, part 6B, schedule 6) | Free | ” |
Redesignate item 613.16 as 613.18, item 652.85 as 652.84, item
652.87 as 652.88, item 680.34 as 680.33, item 680.58 as 680.60, item
Ante, p. 940, 941, 943.
680.59 as 680.70, item 680.60 as 680.90, and item 711.91 as 711.93; and insert in proper numerical sequence new items as follows:
| 207.01 | 652.89 | 683.11 |
| 220.46 | 660.43 | 683.16 |
| 357.91 | 660.45 | 683.61 |
| 357.96 | 660.47 | 683.66 |
| 358.03 | 660.51 | 684.41 |
| 517.82 | 660.53 | 684.63 |
| 535.15 | 660.55 | 684.71 |
| 540.72 | 660.86 | 685.71 |
| 544.18 | 660.93 | 685.81 |
| 544.32 | 660.95 | 685.91 |
| 544.42 | 661.11 | 686.11 |
| 544.52 | 661.13 | 686.23 |
| 544.55 | 661.16 | 686.61 |
| 545.62 | 661.21 | 686.81 |
| 545.64 | 661.36 | 687.51 |
| 547.16 | 661.93 | 687.61 |
| 610.81 | 661.96 | 688.13 |
| 613.16 | 662.36 | 688.41 |
| 613.19 | 662.51 | 711.85 |
| 618.48 | 664.11 | 711.91 |
| 620.47 | 678.51 | 711.99 |
| 642.21 | 680.21 | 712.51 |
| 642.86 | 680.23 | 727.07 |
| 642.88 | 680.28 | 772.66 |
| 646.93 | 680.31 | 772.81 |
| 647.02 | 680.34 | 772.86 |
| 647.06 | 680.36 | 773.26 |
| 652.10 | 680.58 | 773.31 |
| 652.76 | 680.91 | 791.81 |
| 652.85 | 682.71 | 791.91 |
| 652.87 | 682.91 |
each such item having the article description “If Canadian article and original motor-vehicle equipment (see headnote 2, part 6B, schedule 6) . . . .” subordinate to the immediately preceding article description, and having “Free” in rate of duty column numbered 1.
TITLE V— GENERAL PROVISIONS
Sec. 501. authorities
The head of any agency performing functions authorized by this Act may—
authorize the head of any other agency to perform any of such functions; and
prescribe such rules and regulations as may be necessary to perform such functions.
Sec. 502. annual report
The President, shall submit to the Congress an annual report on the implementation of this Act. Such report shall include information regarding new negotiations, reductions or eliminations of duties, reciprocal concessions obtained, and other information relating to activities under this Act. Such report shall also include information providing an evaluation of the Agreement and this Act in relation to the total national interest, and specifically shall include, to the extent practicable, information with respect to—
the production of motor vehicles and motor vehicle parts in the United States and Canada,
the retail prices of motor vehicles and motor vehicle parts in the United States and Canada,
employment in the motor vehicle industry and motor vehicle parts industry in the United States and Canada, and
United States and Canadian trade in motor vehicles and motor vehicle parts, particularly trade between the United States and Canada.
Sec. 503. applicability of antidumping and antitrust laws
Nothing contained in this Act shall be construed to affect or modify the provisions of the Anti-Dumping Act, 1921 (19 U.S.C.
160–173), or of any of the antitrust laws as designated in section 1 of the Act entitled “An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes”, approved
October 15, 1914 (15 U.S.C. 12).
TITLE VI— MISCELLANEOUS PROVISIONS
Sec. 601. joint committee on reduction of nonessential federal expenditures
Section 601(e) of the Revenue Act of 1941 (55 Stat. 726) (relating to the Joint Committee on Reduction of Nonessential Federal Expenditures) is amended to read as follows:
“(e) There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions or this section.”
Approved October 21, 1965.