Trade Expansion Act of 1962. 87-2

Section 250. References.

This section is conventionally used in connection with a new Act succeeding
a number of predecessor Acts. It provides that all provisions of law in effect
after June 30, 1962, referring to section 350 of the Tariff Act, to that section as
amended, to the TA Act of 1934, to that Act as amended, or to agreements
entered into, or proclamations issued under, any of the foregoing provisions,
shall be construed, unless clearly precluded by the context, to refer also to the
new Act, or to agreements entered into, or proclamations issued, pursuant to
the new Act.

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All provisions of law in effect after June 30, 1962, 5 referring to section 350 of the Tariff Act of 1930, to that 6 section as amended, to the Act entitled "An Act to amend 7 the Tariff Act of 1930", approved June 12, 1934, to that 8 Act as amended, or to agreements entered into, or proclama9 tions issued, under any of the foregoing provisions, shall be 10 construed, unless clearly precluded by the context, to refer 11 also to this Act, or to agreements entered into, or proclama12 tions issued, pursuant to this Act.

RELATED PROVISIONS TO BE REPEALED

EXECUTIVE BRANCH EXPLANATION OF 48
PROVISIONS OF H.R. 9900

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TITLE III-ADJUSTMENT ASSISTANCE

CHAPTER 1-ELIGIBILITY FOR ASSISTANCE

Chapter 1 provides for the manner in which firms, workers, and indus-
tries, which have been adversely affected as a result of trade agreement con-
cessions, may become eligible for adjustment assistance. A trade agreement
concession may be a continuance, reduction, or elimination of a duty or other
import restriction, or continuance of duty-free or excise treatment. In the
case of firms and workers, two procedural steps are involved before adjustment
assistance may be furnished. First, a petition for a determination of eligibility
to apply for such assistance must be made under this chapter. Second, if
this determination is favorable, an application for assistance must be made
under chapter 2 or 3, which authorizes assistance to firms and workers, re-
spectively. In the case of industries, however, only one procedural step is
involved, that is, the filing of an application under this chapter to receive ad-
justment assistance in the form of extraordinary relief under chapter 4.

Section 301. Adjustment Assistance.

This section expresses the basic purpose of adjustment assistance, author
izes the President to determine that such assistance may be furnished, and
identifies the recipients and kinds of assistance which may be furnished. First,
like section 102 (Statement of Purposes), it constitutes a recognition of the
propriety of extending assistance to those firms, workers, and industries seek-
ing to adjust to new competitive conditions resulting from trade agreement
concessions. Second, it authorizes the President, but only after receiving the
advice of the Tariff Commission bearing upon eligibility, to determine that
adjustment assistance may be furnished, consistent with the different condi-
tions applicable to firms and workers, on the one hand, and to industries, on
the other. Third, it enumerates the three kinds of assistance to firms techni-
cal assistance, financial assistance, and tax relief, the three kinds of assistance
to workers trade readjustment allowances, training, and relocation allow-
ances, and the single kind available to industries extraordinary relief. As
section 305(b) makes clear, it is intended that assistance to firms and workers
will be the typical forms of assistance, and that only in unusual situations, when
such assistance is determined to be insufficient, will extraordinary relief on an
industry-wide basis be provided. Finally, the section makes clear that the
various forms of assistance may be granted singly or in combination, so that,
for example, a firm could receive financial assistance while its workers were
receiving trade readjustment allowances.

It is expected that the functions vested in the President by this and other
sections of this chapter dealing with firms and workers will be delegated by
the President, and that functions vested in the President dealing with indus-
tries will be reserved to the President.

EXECUTIVE BRANCH EXFLANATION OF 49
PROVISIONS OF H.R. 9900

Section 302. Determinations as to Firmas.

This section provides tlut a firm shall be eligible to apply for adjustment
assistance under chapter 2 of title 111 if the President makes certain deteriama-
tions regarding the adverse effects upon the firm of increased imports. The
President must first determine that, as a result of a trade agreement concession,
an article like or directly competitive with an article produced by the firm is
being imported into the United States in increased quantities. Such trade con
cession may be a concession made either before or after the effective date of the
new Act. The President must further determine that the increased quantities
of the imports are such as to cause, or immediately threaten to cause, at least
one of the following three adverse conditions: (1) significant idling of the
productive facilities of the firm, or (2) prolonged and persistent inability of
the firm to operate at a profit, or (3) employment or underemployment of
a significant number of the workers of the firm.

EXECUTIVE BRANCH EXPLANATION OF 50
PROVISIONS OF H.R. 9900

Section 303. Determinations as to Workers.

This section provides that workers shall be eligible to apply for adjust-
ment assistance mider chapter 3 of title III if the President makes certain de-
terminations regarding the adverse effects upon the workers' firm of increased
imports. The subject of the determination is the firm, as in the case of section
302, or an appropriate subdivision of the firm. The President must first deter
mine with respect to the workers' firm or an appropriate subdivision of the firm
that as a result of a trade agreements concession an article like or directly com-
petitive with an article produced by such firm or subdivision is being imported
into the United States in increased quantities. The inclusion of a reference to a
subdivision takes into account a firm, in which only one plant, building, or line,
for example, might be adversely affected. The President must further deter-
mine that the increased quantities of the imports are such as to cause, or im-
mediately threaten to cause, unemployment or underemployment of a significant
number of the workers of the firm or subdivision. If he makes such a determi
nation, the President must determine the date on which the conditions above
specified began or threatened to begin, for purposes of section 322 (Qualifying
Requirements for Trade Readjustment Allowances to Workers).

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(b) When a petition is filed pursuant to subsection 19 (a) of this section, the President shall transmit a copy of 20 the petition to the Tariff Commission. The Tariff Commis21 sion shall, within forty-five days after receipt of such copy, 22 advise the President regarding the extent to which imports 23 of an article like or directly competitive with the domestic 24 article in question have increased as a result of the action of 25 the President upon which the petition is based. The Tariff Sec. 304-Page 22

1 Commission shall also transinit, at the same time and in 2 appropriate form, such other information regarding the in3 dustry or segment of the industry in which the petitioner 4 is located, as it may have or may reasonably be able to ob5 tain and as may be useful in determining the petitioner's 6 eligibility to apply for adjustment assistance.

Subsection (b) deals with the procedure and the role of the Tariff Commission, after the filing of a petition for a determination of eligibility. When a petition is filed for a firm or workers, the President must transmit a copy of the petition to the Tariff Commission. Within 45 days after it receives the petition, the Tariff Commission is required to advise the President regarding the extent to which imports of an article like or directly competitive with the domestic article in question (i.e., produced by such firm or subdivision of the firm) have increased as a result of a trade agreement concession upon which the petition is based. The limitation of 45 days is imposed in order to permit expeditious action upon applications for adjustment assistance, Along with its advice, the Tariff Commission will transmit, in appropriate form, other information regarding the industry or segment of the industry in which the petitioner is located. This additional information would be such as the Tariff Commission may have, or may reasonably be able to obtain, which may be useful in determining the firm's or workers eligibility to apply for adjustment assistance.

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