                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 4--TARIFF ACT OF 1930
 
                 SUBTITLE III--ADMINISTRATIVE PROVISIONS
 
       Part I--Definitions and National Customs Automation Program
 
                         subpart a--definitions
 
Sec. 1401a. Value


(a) Generally

    (1) Except as otherwise specifically provided for in this chapter, 
imported merchandise shall be appraised, for the purposes of this 
chapter, on the basis of the following:
        (A) The transaction value provided for under subsection (b) of 
    this section.
        (B) The transaction value of identical merchandise provided for 
    under subsection (c) of this section, if the value referred to in 
    subparagraph (A) cannot be determined, or can be determined but 
    cannot be used by reason of subsection (b)(2) of this section.
        (C) The transaction value of similar merchandise provided for 
    under subsection (c) of this section, if the value referred to in 
    subparagraph (B) cannot be determined.
        (D) The deductive value provided for under subsection (d) of 
    this section, if the value referred to in subparagraph (C) cannot be 
    determined and if the importer does not request alternative 
    valuation under paragraph (2).
        (E) The computed value provided for under subsection (e) of this 
    section, if the value referred to in subparagraph (D) cannot be 
    determined.
        (F) The value provided for under subsection (f) of this section, 
    if the value referred to in subparagraph (E) cannot be determined.

    (2) If the value referred to in paragraph (1)(C) cannot be 
determined with respect to imported merchandise, the merchandise shall 
be appraised on the basis of the computed value provided for under 
paragraph (1)(E), rather than the deductive value provided for under 
paragraph (1)(D), if the importer makes a request to that effect to the 
customs officer concerned within such time as the Secretary shall 
prescribe. If the computed value of the merchandise cannot subsequently 
be determined, the merchandise may not be appraised on the basis of the 
value referred to in paragraph (1)(F) unless the deductive value of the 
merchandise cannot be determined under paragraph (1)(D).
    (3) Upon written request therefor by the importer of merchandise, 
and subject to provisions of law regarding the disclosure of 
information, the customs officer concerned shall provide the importer 
with a written explanation of how the value of that merchandise was 
determined under this section.

(b) Transaction value of imported merchandise

    (1) The transaction value of imported merchandise is the price 
actually paid or payable for the merchandise when sold for exportation 
to the United States, plus amounts equal to--
        (A) the packing costs incurred by the buyer with respect to the 
    imported merchandise;
        (B) any selling commission incurred by the buyer with respect to 
    the imported merchandise;
        (C) the value, apportioned as appropriate, of any assist;
        (D) any royalty or license fee related to the imported 
    merchandise that the buyer is required to pay, directly or 
    indirectly, as a condition of the sale of the imported merchandise 
    for exportation to the United States; and
        (E) the proceeds of any subsequent resale, disposal, or use of 
    the imported merchandise that accrue, directly or indirectly, to the 
    seller.

The price actually paid or payable for imported merchandise shall be 
increased by the amounts attributable to the items (and no others) 
described in subparagraphs (A) through (E) only to the extent that each 
such amount (i) is not otherwise included within the price actually paid 
or payable; and (ii) is based on sufficient information. If sufficient 
information is not available, for any reason, with respect to any amount 
referred to in the preceding sentence, the transaction value of the 
imported merchandise concerned shall be treated, for purposes of this 
section, as one that cannot be determined.
    (2)(A) The transaction value of imported merchandise determined 
under paragraph (1) shall be the appraised value of that merchandise for 
the purposes of this chapter only if--
        (i) there are no restrictions on the disposition or use of the 
    imported merchandise by the buyer other than restrictions that--
            (I) are imposed or required by law,
            (II) limit the geographical area in which the merchandise 
        may be resold, or
            (III) do not substantially affect the value of the 
        merchandise;

        (ii) the sale of, or the price actually paid or payable for, the 
    imported merchandise is not subject to any condition or 
    consideration for which a value cannot be determined with respect to 
    the imported merchandise;
        (iii) no part of the proceeds of any subsequent resale, 
    disposal, or use of the imported merchandise by the buyer will 
    accrue directly or indirectly to the seller, unless an appropriate 
    adjustment therefor can be made under paragraph (1)(E); and
        (iv) the buyer and seller are not related, or the buyer and 
    seller are related but the transaction value is acceptable, for 
    purposes of this subsection, under subparagraph (B).

    (B) The transaction value between a related buyer and seller is 
acceptable for the purposes of this subsection if an examination of the 
circumstances of the sale of the imported merchandise indicates that the 
relationship between such buyer and seller did not influence the price 
actually paid or payable; or if the transaction value of the imported 
merchandise closely approximates--
        (i) the transaction value of identical merchandise, or of 
    similar merchandise, in sales to unrelated buyers in the United 
    States; or
        (ii) the deductive value or computed value for identical 
    merchandise or similar merchandise;

but only if each value referred to in clause (i) or (ii) that is used 
for comparison relates to merchandise that was exported to the United 
States at or about the same time as the imported merchandise.
    (C) In applying the values used for comparison purposes under 
subparagraph (B), there shall be taken into account differences with 
respect to the sales involved (if such differences are based on 
sufficient information whether supplied by the buyer or otherwise 
available to the customs officer concerned) in--
        (i) commercial levels;
        (ii) quantity levels;
        (iii) the costs, commissions, values, fees, and proceeds 
    described in paragraph (1); and
        (iv) the costs incurred by the seller in sales in which he and 
    the buyer are not related that are not incurred by the seller in 
    sales in which he and the buyer are related.

    (3) The transaction value of imported merchandise does not include 
any of the following, if identified separately from the price actually 
paid or payable and from any cost or other item referred to in paragraph 
(1):
        (A) Any reasonable cost or charge that is incurred for--
            (i) the construction, erection, assembly, or maintenance of, 
        or the technical assistance provided with respect to, the 
        merchandise after its importation into the United States; or
            (ii) the transportation of the merchandise after such 
        importation.

        (B) The customs duties and other Federal taxes currently payable 
    on the imported merchandise by reason of its importation, and any 
    Federal excise tax on, or measured by the value of, such merchandise 
    for which vendors in the United States are ordinarily liable.

    (4) For purposes of this subsection--
        (A) The term ``price actually paid or payable'' means the total 
    payment (whether direct or indirect, and exclusive of any costs, 
    charges, or expenses incurred for transportation, insurance, and 
    related services incident to the international shipment of the 
    merchandise from the country of exportation to the place of 
    importation in the United States) made, or to be made, for imported 
    merchandise by the buyer to, or for the benefit of, the seller.
        (B) Any rebate of, or other decrease in, the price actually paid 
    or payable that is made or otherwise effected between the buyer and 
    seller after the date of the importation of the merchandise into the 
    United States shall be disregarded in determining the transaction 
    value under paragraph (1).

(c) Transaction value of identical merchandise and similar merchandise

    (1) The transaction value of identical merchandise, or of similar 
merchandise, is the transaction value (acceptable as the appraised value 
for purposes of this chapter under subsection (b) of this section but 
adjusted under paragraph (2) of this subsection) of imported merchandise 
that is--
        (A) with respect to the merchandise being appraised, either 
    identical merchandise or similar merchandise, as the case may be; 
    and
        (B) exported to the United States at or about the time that the 
    merchandise being appraised is exported to the United States.

    (2) Transaction values determined under this subsection shall be 
based on sales of identical merchandise or similar merchandise, as the 
case may be, at the same commercial level and in substantially the same 
quantity as the sales of the merchandise being appraised. If no such 
sale is found, sales of identical merchandise or similar merchandise at 
either a different commercial level or in different quantities, or both, 
shall be used, but adjusted to take account of any such difference. Any 
adjustment made under this paragraph shall be based on sufficient 
information. If in applying this paragraph with respect to any imported 
merchandise, two or more transaction values for identical merchandise, 
or for similar merchandise, are determined, such imported merchandise 
shall be appraised on the basis of the lower or lowest of such values.

(d) Deductive value

    (1) For purposes of this subsection, the term ``merchandise 
concerned'' means the merchandise being appraised, identical 
merchandise, or similar merchandise.
    (2)(A) The deductive value of the merchandise being appraised is 
whichever of the following prices (as adjusted under paragraph (3)) is 
appropriate depending upon when and in what condition the merchandise 
concerned is sold in the United States:
        (i) If the merchandise concerned is sold in the condition as 
    imported at or about the date of importation of the merchandise 
    being appraised, the price is the unit price at which the 
    merchandise concerned is sold in the greatest aggregate quantity at 
    or about such date.
        (ii) If the merchandise concerned is sold in the condition as 
    imported but not sold at or about the date of importation of the 
    merchandise being appraised, the price is the unit price at which 
    the merchandise concerned is sold in the greatest aggregate quantity 
    after the date of importation of the merchandise being appraised but 
    before the close of the 90th day after the date of such importation.
        (iii) If the merchandise concerned was not sold in the condition 
    as imported and not sold before the close of the 90th day after the 
    date of importation of the merchandise being appraised, the price is 
    the unit price at which the merchandise being appraised, after 
    further processing, is sold in the greatest aggregate quantity 
    before the 180th day after the date of such importation. This clause 
    shall apply to appraisement of merchandise only if the importer so 
    elects and notifies the customs officer concerned of that election 
    within such time as shall be prescribed by the Secretary.

    (B) For purposes of subparagraph (A), the unit price at which 
merchandise is sold in the greatest aggregate quantity is the unit price 
at which such merchandise is sold to unrelated persons, at the first 
commercial level after importation (in cases to which subparagraph 
(A)(i) or (ii) applies) or after further processing (in cases to which 
subparagraph (A)(iii) applies) at which such sales take place, in a 
total volume that is (i) greater than the total volume sold at any other 
unit price, and (ii) sufficient to establish the unit price.
    (3)(A) the price determined under paragraph (2) shall be reduced by 
an amount equal to--
        (i) any commission usually paid or agreed to be paid, or the 
    addition usually made for profit and general expenses, in connection 
    with sales in the United States of imported merchandise that is of 
    the same class or kind, regardless of the country of exportation, as 
    the merchandise concerned;
        (ii) the actual costs and associated costs of transportation and 
    insurance incurred with respect to international shipments of the 
    merchandise concerned from the country of exportation to the United 
    States;
        (iii) the usual costs and associated costs of transportation and 
    insurance incurred with respect to shipments of such merchandise 
    from the place of importation to the place of delivery in the United 
    States, if such costs are not included as a general expense under 
    clause (i);
        (iv) the customs duties and other Federal taxes currently 
    payable on the merchandise concerned by reason of its importation, 
    and any Federal excise tax on, or measured by the value of, such 
    merchandise for which vendors in the United States are ordinarily 
    liable; and
        (v) (but only in the case of a price determined under paragraph 
    (2)(A)(iii)) the value added by the processing of the merchandise 
    after importation to the extent that the value is based on 
    sufficient information relating to cost of such processing.

    (B) For purposes of applying paragraph (A)--
        (i) the deduction made for profits and general expenses shall be 
    based upon the importer's profits and general expenses, unless such 
    profits and general expenses are inconsistent with those reflected 
    in sales in the United States of imported merchandise of the same 
    class or kind, in which case the deduction shall be based on the 
    usual profit and general expenses reflected in such sales, as 
    determined from sufficient information; and
        (ii) any State or local tax imposed on the importer with respect 
    to the sale of imported merchandise shall be treated as a general 
    expense.

    (C) The price determined under paragraph (2) shall be increased (but 
only to the extent that such costs are not otherwise included) by an 
amount equal to the packing costs incurred by the importer or the buyer, 
as the case may be, with respect to the merchandise concerned.
    (D) For purposes of determining the deductive value of imported 
merchandise, any sale to a person who supplies any assist for use in 
connection with the production or sale for export of the merchandise 
concerned shall be disregarded.

(e) Computed value

    (1) The computed value of imported merchandise is the sum of--
        (A) the cost or value of the materials and the fabrication and 
    other processing of any kind employed in the production of the 
    imported merchandise;
        (B) an amount for profit and general expenses equal to that 
    usually reflected in sales of merchandise of the same class or kind 
    as the imported merchandise that are made by the producers in the 
    country of exportation for export to the United States;
        (C) any assist, if its value is not included under subparagraph 
    (A) or (B); and
        (D) the packing costs.

    (2) For purposes of paragraph (1)--
        (A) the cost or value of materials under paragraph (1)(A) shall 
    not include the amount of any internal tax imposed by the country of 
    exportation that is directly applicable to the materials or their 
    disposition if the tax is remitted or refunded upon the exportation 
    of the merchandise in the production of which the materials were 
    used; and
        (B) the amount for profit and general expenses under paragraph 
    (1)(B) shall be based upon the producer's profits and expenses, 
    unless the producer's profits and expenses are inconsistent with 
    those usually reflected in sales of merchandise of the same class or 
    kind as the imported merchandise that are made by producers in the 
    country of exportation for export to the United States, in which 
    case the amount under paragraph (1)(B) shall be based on the usual 
    profit and general expenses of such producers in such sales, as 
    determined from sufficient information.

(f) Value if other values cannot be determined or used

    (1) If the value of imported merchandise cannot be determined, or 
otherwise used for the purposes of this chapter, under subsections (b) 
through (e) of this section, the merchandise shall be appraised for the 
purposes of this chapter on the basis of a value that is derived from 
the methods set forth in such subsections, with such methods being 
reasonably adjusted to the extent necessary to arrive at a value.
    (2) Imported merchandise may not be appraised, for the purposes of 
this chapter, on the basis of--
        (A) the selling price in the United States of merchandise 
    produced in the United States;
        (B) a system that provides for the appraisement of imported 
    merchandise at the higher of two alternative values;
        (C) the price of merchandise in the domestic market of the 
    country of exportation;
        (D) a cost of production, other than a value determined under 
    subsection (e) of this section for merchandise that is identical 
    merchandise or similar merchandise to the merchandise being 
    appraised;
        (E) the price of merchandise for export to a country other than 
    the United States;
        (F) minimum values for appraisement; or
        (G) arbitrary or fictitious values.

This paragraph shall not apply with respect to the ascertainment, 
determination, or estimation of foreign market value or United States 
price under subtitle IV of this chapter.

(g) Special rules

    (1) For purposes of this section, the persons specified in any of 
the following subparagraphs shall be treated as persons who are related:
        (A) Members of the same family, including brothers and sisters 
    (whether by whole or half blood), spouse, ancestors, and lineal 
    descendants.
        (B) Any officer or director of an organization and such 
    organization.
        (C) An officer or director of an organization and an officer or 
    director of another organization, if each such individual is also an 
    officer or director in the other organization.
        (D) Partners.
        (E) Employer and employee.
        (F) Any person directly or indirectly owning, controlling, or 
    holding with power to vote, 5 percent or more of the outstanding 
    voting stock or shares of any organization and such organization.
        (G) Two or more persons directly or indirectly controlling, 
    controlled by, or under common control with, any person.

    (2) For purposes of this section, merchandise (including, but not 
limited to, identical merchandise and similar merchandise) shall be 
treated as being of the same class or kind as other merchandise if it is 
within a group or range of merchandise produced by a particular industry 
or industry sector.
    (3) For purposes of this section, information that is submitted by 
an importer, buyer, or producer in regard to the appraisement of 
merchandise may not be rejected by the customs officer concerned on the 
basis of the accounting method by which that information was prepared, 
if the preparation was in accordance with generally accepted accounting 
principles. The term ``generally accepted accounting principles'' refers 
to any generally recognized consensus or substantial authoritative 
support regarding--
        (A) which economic resources and obligations should be recorded 
    as assets and liabilities;
        (B) which changes in assets and liabilities should be recorded;
        (C) how the assets and liabilities and changes in them should be 
    measured;
        (D) what information should be disclosed and how it should be 
    disclosed; and
        (E) which financial statements should be prepared.

The applicability of a particular set of generally accepted accounting 
principles will depend upon the basis on which the value of the 
merchandise is sought to be established.

(h) Definitions

     As used in this section--
        (1)(A) The term ``assist'' means any of the following if 
    supplied directly or indirectly, and free of charge or at reduced 
    cost, by the buyer of imported merchandise for use in connection 
    with the production or the sale for export to the United States of 
    the merchandise:
            (i) Materials, components, parts, and similar items 
        incorporated in the imported merchandise.
            (ii) Tools, dies, molds, and similar items used in the 
        production of the imported merchandise.
            (iii) Merchandise consumed in the production of the imported 
        merchandise.
            (iv) Engineering, development, artwork, design work, and 
        plans and sketches that are undertaken elsewhere than in the 
        United States and are necessary for the production of the 
        imported merchandise.

        (B) No service or work to which subparagraph (A)(iv) applies 
    shall be treated as an assist for purposes of this section if such 
    service or work--
            (i) is performed by an individual who is domiciled within 
        the United States;
            (ii) is performed by that individual while he is acting as 
        an employee or agent of the buyer of the imported merchandise; 
        and
            (iii) is incidental to other engineering, development, 
        artwork, design work, or plans or sketches that are undertaken 
        within the United States.

        (C) For purposes of this section, the following apply in 
    determining the value of assists described in subparagraph (A)(iv):
            (i) The value of an assist that is available in the public 
        domain is the cost of obtaining copies of the assist.
            (ii) If the production of an assist occurred in the United 
        States and one or more foreign countries, the value of the 
        assist is the value thereof that is added outside the United 
        States.

        (2) The term ``identical merchandise'' means--
            (A) merchandise that is identical in all respects to, and 
        was produced in the same country and by the same person as, the 
        merchandise being appraised; or
            (B) if merchandise meeting the requirements under 
        subparagraph (A) cannot be found (or for purposes of applying 
        subsection (b)(2)(B)(i) of this section, regardless of whether 
        merchandise meeting such requirements can be found), merchandise 
        that is identical in all respects to, and was produced in the 
        same country as, but not produced by the same person as, the 
        merchandise being appraised.

    Such term does not include merchandise that incorporates or reflects 
    any engineering, development, artwork, design work, or plan or 
    sketch that--
            (I) was supplied free or at reduced cost by the buyer of the 
        merchandise for use in connection with the production or the 
        sale for export to the United States of the merchandise; and
            (II) is not an assist because undertaken within the United 
        States.

        (3) The term ``packing costs'' means the cost of all containers 
    and coverings of whatever nature and of packing, whether for labor 
    or materials, used in placing merchandise in condition, packed ready 
    for shipment to the United States.
        (4) The term ``similar merchandise'' means--
            (A) merchandise that--
                (i) was produced in the same country and by the same 
            person as the merchandise being appraised,
                (ii) is like the merchandise being appraised in 
            characteristics and component material, and
                (iii) is commercially interchangeable with the 
            merchandise being appraised; or

            (B) if merchandise meeting the requirements under 
        subparagraph (A) cannot be found (or for purposes of applying 
        subsection (b)(2)(B)(i) of this section, regardless of whether 
        merchandise meeting such requirements can be found), merchandise 
        that--
                (i) was produced in the same country as, but not 
            produced by the same person as, the merchandise being 
            appraised, and
                (ii) meets the requirement set forth in subparagraph 
            (A)(ii) and (iii).

    Such term does not include merchandise that incorporates or reflects 
    any engineering, development, artwork, design work, or plan or 
    sketch that--
            (I) was supplied free or at reduced cost by the buyer of the 
        merchandise for use in connection with the production or the 
        sale for export to the United States of the merchandise; and
            (II) is not an assist because undertaken within the United 
        States.

        (5) The term ``sufficient information'', when required under 
    this section for determining--
            (A) any amount--
                (i) added under subsection (b)(1) of this section to the 
            price actually paid or payable,
                (ii) deducted under subsection (d)(3) of this section as 
            profit or general expense or value from further processing, 
            or
                (iii) added under subsection (e)(2) of this section as 
            profit or general expense;

            (B) any difference taken into account for purposes of 
        subsection (b)(2)(C) of this section; or
            (C) any adjustment made under subsection (c)(2) of this 
        section;

    means information that establishes the accuracy of such amount, 
    difference, or adjustment.

(June 17, 1930, ch. 497, title IV, Sec. 402, as added Aug. 2, 1956, ch. 
887, Sec. 2(a), 70 Stat. 943; amended Pub. L. 96-39, title II, 
Sec. 201(a), July 26, 1979, 93 Stat. 194; Pub. L. 96-490, Sec. 2, Dec. 
2, 1980, 94 Stat. 2556.)


                               Amendments

    1980--Subsec. (b)(2)(B). Pub. L. 96-490 amended par. (B) generally, 
omitting cl. (iii) which provided that ``the transaction value 
determined under this subsection in sales to unrelated buyers of 
merchandise, for exportation to the United States, that is identical in 
all respects to the imported merchandise but was not produced in the 
country in which the imported merchandise was produced'', and omitting 
the provision relating to cl. (iii) which provided that ``No two sales 
to unrelated buyers may be used for comparison for purposes of clause 
(iii) unless the sellers are unrelated.''
    1979--Pub. L. 96-39 completely revised statutory standards for 
appraising the value of imported merchandise to conform to Customs 
Valuation Agreement, incorporating, as part of that revision, a new 
format of five methods of determining customs value in subsecs. (b) 
through (f), a group of special rules in subsec. (g), and definition of 
terms in subsec. (h).


                    Effective Date of 1980 Amendment

    Section 2 of Pub. L. 96-490 provided in part that the amendment made 
by that section is ``effective on the latest of--
        ``(1) the date on which the amendments made by title II of the 
    Trade Agreements Act of 1979 (except the amendments made by section 
    223(b)) take effect [July 1, 1980],
        ``(2) the date on which the President accepts the Protocol [to 
    the Agreement on Implementation of Article VII of the General 
    Agreement on Tariffs and Trade] for the United States [Dec. 30, 
    1980], or
        ``(3) the date on which the President determines that the 
    European Economic Community has implemented the Protocol under its 
    laws [Jan. 1, 1981],
and effective with respect to merchandise exported to the United States 
on or after that date''.
    [For delegation of authority of the President to make the 
determinations required by pars. (1) to (3), above, to the United States 
Trade Representative, see Memorandum of the President, Dec. 17, 1980, 45 
F.R. 83467.]
    [For determination of the United States Trade Representative that 
the conditions of pars. (1) to (3), above, were satisfied effective on 
Jan. 1, 1981, see Determination of United States Trade Representative, 
46 F.R. 1073.]


 Effective Date of 1979 Amendment; Transition to New Valuation Standards

    Section 204 of title II of Pub. L. 96-39 provided that:
    ``(a) Effective Date of Amendments.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    amendments made by this title [amending the Tariff Schedules of the 
    United States (see Publication of Tariff Schedules note under 
    section 1202 of this title), sections 1332, 1336, 1351, 1401a, 1500, 
    and 2481 of this title, and section 993 of Title 26, Internal 
    Revenue Code, repealing section 1402 of this title, and enacting 
    provisions set out as notes under sections 1202, 1401a, and 2111 of 
    this title] (except the amendments made by section 223(b) [amending 
    schedule 7, part 1, subpart A of the Tariff Schedules of the United 
    States] shall take effect on--
            ``(A) January 1, 1981, if the Agreement enters into force 
        with respect to the United States by that date; or
            ``(B) if subparagraph (A) does not apply, that date after 
        January 1, 1981, on which the Agreement enters into such force;
    and shall apply with respect to merchandise that is exported to the 
    United States on or after whichever of such dates applies.
        ``(2) Earlier effective date under certain circumstances.--If 
    the President determines before January 1, 1981, that--
            ``(A) the European Economic Community has accepted the 
        obligations of the Agreement with respect to the United States; 
        and
            ``(B) each of the member states of the European Economic 
        Community has implemented the Agreement under its laws;
    the President shall by proclamation announce such determination and 
    the amendments made by this title (except the amendments made by 
    section 223(b) [amending schedule 7, part 1, subpart A of the Tariff 
    Schedules of the United States] shall take effect on the date 
    specified in the proclamation [July 1, 1980] (but not before July 1, 
    1980) and shall apply with respect to merchandise that is exported 
    to the United States on or after such date; except that unless the 
    Agreement enters into force with respect to the United States by 
    January 1, 1981, all provisions of law that were amended by such 
    amendments are revived (as in effect on the day before such 
    amendments took effect) on January 1, 1981, and such provisions--
            ``(i) shall remain in effect until the date on which the 
        Agreement enters into force with respect to the United States 
        (and on such date the amendments made by this title (except the 
        amendments made by section 223(b) [amending schedule 7, part 1, 
        subpart A of the Tariff Schedules of the United States]) are 
        revived and shall apply with respect to merchandise exported to 
        the United States on or after such date); and
            ``(ii) shall apply with respect to merchandise exported to 
        the United States on or after January 1, 1981, and before the 
        date on which the Agreement enters into such force.
    ``(b) Application of Old Law Valuation Standards.--For purposes of 
the administration of the customs laws, all merchandise (other than 
merchandise to which subsections (a) and (c) apply) shall be appraised 
on the same basis, and in the same manner, as if the amendments made by 
this title had not been enacted.
    ``(c) Special Treatment for Certain Rubber Footwear.--The amendments 
made by section 223(b) [amending schedule 7, part 1, subpart A of the 
Tariff Schedules of the United States] shall take effect July 1, 1981, 
or, if later, the date on which the Agreement enters into force with 
respect to the United States, and shall apply, together with the other 
amendments made by this title, to rubber footwear exported to the United 
States on or after such date. For purposes of the administration of the 
customs laws, all rubber footwear (other than rubber footwear to which 
the preceding sentence applies) shall be appraised on the same basis, 
and in the same manner, as if the amendments made by this title had not 
been enacted.
    ``(d) Definition.--For purposes of this section, the term `rubber 
footwear' means articles described in item 700.60 of the Tariff 
Schedules of the United States (as in effect on the day before the day 
on which the amendments made by section 223(b) [amending schedule 7, 
part 1, subpart A of the Tariff Schedules of the United States] take 
effect).''
    [For Presidential proclamation specifying in accordance with subsec. 
(a)(2), above, that the amendments by title II of Pub. L. 96-39 are 
effective July 1, 1980, see sections 5(b) and 2(a) of Proc. No. 4768, 
June 28, 1980, 45 F.R. 45136, 45137, set out as a note under section 
2111 of this title.]


                             Effective Date

    Section 8 of act Aug. 2, 1956, provided that: ``This Act [enacting 
this section and provisions set out in notes under this section and 
sections 2, 160, 1351, and 1402 of this title, amending sections 1001, 
1402, 1500, and 1583 of this title, and sections 372 and 711 of former 
Title 31, Money and Finance, and repealing sections 12 to 18, 21 to 24, 
26 to 28, 30, 40, 53 to 57, 59, 61, 62, 67, 376, 379, 390, 494, 526, 
541, 542, 549, and 579 of this title] shall be effective on and after 
the day following the date of its enactment [Aug. 2, 1956], except that 
section 2 [enacting this section and provisions set out in note under 
section 1351 of this title, and amending sections 1001, 1336, and 1402 
of this title] shall be effective only as to articles entered, or 
withdrawn from warehouse, for consumption on or after the thirtieth day 
following the publication of the final list provided for in section 6(a) 
of this Act [set out in note under section 1402 of this title], and 
section 3 [amending section 372 of former Title 31] shall be effective 
as to entries filed on or after the thirtieth day following the date of 
enactment of this Act [Aug. 2, 1956].''


      Presidential Report to Congress on Operation of Agreement on 
 Implementation of Article VII of the General Agreement on Tariffs and 
                        Trade Over 2-Year Period

    Section 203 of Pub. L. 96-39 provided that: ``As soon as practicable 
after the close of the 2-year period beginning on the date on which the 
amendments made by this title (other than section 223(b), relating to 
certain rubber footwear) take effect [see Effective Date of 1979 
Amendment note set out above], the President shall prepare and submit to 
Congress a report containing an evaluation of the operation of the 
Agreement on Implementation of Article VII of the General Agreement on 
Tariffs and Trade approved under section 2(a) [section 2503(a) of this 
title] (hereinafter in this subtitle referred to as the `Agreement'), 
both domestically and internationally, during that period.''


List of Articles To Be Valued; Preliminary List; Additions; Final List; 
                 Transmittal to Congressional Committees

    Section 6 of act Aug. 2, 1956, provided that:
    ``(a) The Secretary of the Treasury shall determine and make public 
a list of the articles which shall be valued in accordance with section 
402a, Tariff Act of 1930, as amended by this Act [former section 1402 of 
this title], as follows:
    ``As soon as practicable after the enactment of this Act [Aug. 2, 
1956] the Secretary shall make public a preliminary list of the imported 
articles which he shall have determined, after such investigation as he 
deems necessary, would have been appraised in accordance with section 
402 of the Tariff Act of 1930, as amended by this Act [this section], at 
average values for each article which are 95 (or less) per centum of the 
average values at which such article was actually appraised during the 
fiscal year 1954. If within sixty days after the publication of such 
preliminary list any manufacturer, producer, or wholesaler in the United 
States presents to the Secretary his reason for belief that any imported 
articles not specified in such list and like or similar to articles 
manufactured, produced, or sold at wholesale by him would have been 
appraised in accordance with such section 402 [section 1401a of this 
title] at average values which are 95 (or less) per centum of the 
average values at which they were or would have been appraised under 
section 402a, Tariff Act of 1930, as amended by this Act, the Secretary 
shall cause such investigation of the matter to be made as he deems 
necessary. If in the opinion of the Secretary the reason for belief is 
substantiated by the investigation, the articles involved shall be added 
to the preliminary list and such list, including any additions so made 
thereto, shall be published as a final list. Every article so specified 
in the final list which is entered, or withdrawn from warehouse, for 
consumption on or after the thirtieth day following the date of 
publication of the final list shall be appraised in accordance with the 
provisions of section 402a, Tariff Act of 1930, as amended by this Act.
    ``(b) The final list published in accordance with the provisions of 
subsection (a), together with explanatory data, shall be transmitted 
promptly to the chairmen of the Committee on Ways and Means of the House 
of Representatives and the Committee on Finance of the Senate.''

                  Section Referred to in Other Sections

    This section is referred to in sections 58c, 1332, 1351, 1500, 2112, 
2481 of this title; title 26 sections 904, 927, 993.
