under such supervision as the Secretary may prescribe within sixty days after its importation because it was found by the importer to be unsatisfactory.

“(f) All articles exempted by this paragraph from the payment of duty shall be exempt also from the payment of any internal-revenue tax imposed on or by reason of importation.

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

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

FREE ENTRY FOR NONCOMMERCIAL EXHIBITIONS

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

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

TEMPORARY FREE ENTRY FOR SAMPLES AND OTHER ARTICLES UNDER BOND

SEC. 10. (a) (1) The part of section 308 of the Tariff Act of 1930, as amended (U. S. C., 1946 edition, title 19, sec. 1308), preceding the numbered items is amended to read as follows: "The following articles, when not imported for sale or for sale on approval, may be admitted into the United States under such rules and regulations as the Secretary of the Treasury may prescribe, without the payment of duty, under bond for the exportation within one year from the date of importation, which period, in the discretion of the Secretary of the Treasury, may be extended, upon application, for one or more further periods which, when added to the initial one year, shall not exceed a total of three years:".

(2) This amendment shall be effective with respect to articles imported before or after this section becomes effective.

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

"(4) articles intended solely for testing, experimental, or review purposes, including plans, specifications, drawings, blueprints, photographs, and similar articles for use in connection with experiments or for study, and upon satisfactory proof that any such article has been destroyed because of its use for any such purpose the obligation under such bond to export or destroy such articles shall be treated as satisfied;".

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

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

(d) Section 308 (7) of the Tariff Act of 1930

(U. S. C., 1946 edition, title 19, sec. 1308 (7)), is amended to read as follows: "(7) containers for compresed gases, filled or empty, and containers or other articles in use for covering or holding merchandise (including personal or household effects) during transportation and suitable for reuse for that purpose;".

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

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

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

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

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

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

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

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

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

SUPPLIES AND EQUIPMENT FOR VESSELS AND AIRCRAFT

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

"(a) EXEMPTION FROM DUTIES AND TAXES.-Articles of foreign or domestic origin may be withdrawn, under such regulations as the Secretary of the Treasury may prescribe, from any customs bonded warehouse, from continuous customs custody elsewhere than in a bonded warehouse, or from a foreign-trade zone free of duty and internal-revenue tax, or from any internal-revenue bonded warehouse, from any brewery, or from any winery premises or bonded premises for the storage of wine, free of internal-revenue tax

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

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

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

"(b) DRAWBACK.-Articles withdrawn from bonded warehouses, bonded manufacturing warehouses, continuous customs custody elsewhere than in a bonded warehouse, or from a foreign-trade zone, and articles of domestic manu

facture or production, laden as supplies upon any such vessel or aircraft of the United States or laden as supplies (including equipment) upon, or used in the maintenance or repair of, any such foreign vessel or aircraft, shall be considered to be exported within the meaning of the drawback provisions of this chapter.”

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

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

DRAWBACK

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

(b) Section 313 (c) of the Tariff Act of 1930 (U. S. C., 1946 edition, title 19, sec. 1313 (e)), is amended by inserting "or shipped without the consent of the consignee" after "sample or specifications"; by deleting "thirty days" and substituting therefor "nine days"; and by inserting "unless the Secretary authorizes in writing a longer time", following "after release from customs custody,".

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

"(h) TIME LIMITATION ON EXPORTATION.-No drawback shall be allowed. under the provisions of this section unless the completed article is exported within five years after importation of the imported merchandise.

"(i) REGULATIONS.-Allowance of the privileges provided for in this section shall be subject to compliance with such rules and regulations as the Secretary of the Treasury shall prescribe, which may include, but need not be limited to, the fixing of a time limit within which drawback entries or entries for refund under any of the provisions of this section or section 309 (b) of this Act shall be filed and completed, and the designation of the person to whom any refund or payment of drawback shall be made."

ADMINISTRATIVE EXEMPTION

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

"SEC. 321. ADMINISTRATIVE EXEMPTIONS.

"The Secretary of the Treasury is hereby authorized, under such regulations as he shall prescribe, to—

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

"(b) admit articles free of duty and of any tax imposed on or by reason of importation when the expense and inconvenience of collecting the duty accruing thereon would be disproportionate to the amount of such duty, but the aggregate value of articles imported by one person on one day and exempted from the payment of duty shall not exceed

"(1) $10 in the case of articles sent as bona fide gifts from persons in foreign countries to persons in the United States, or

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

"(3) $3 in any other case.

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

"(c) The purpose of this section is to avoid expense and inconvenience to the Government disproportionate to the amount of revenue that would otherwise be collected. Therefore, the Secretary of the Treasury is authorized by regulations to diminish any dollar amount specified heretofore in this section and to prescribe exceptions to any exemption provided for in this section whenever he finds that such diminutions or exceptions are consistent with the purpose above stated, or are for any reason necessary to protect the revenue or to prevent unlawful importations."

INTERNATIONAL TRAFFIC AND RESCUE WORK

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

"SEC. 322. INTERNATIONAL TRAFFIC AND RESCUE WORK.

"(a) Vehicles and other instruments of international traffic, of any class specified by the Secretary of the Treasury, shall be granted the customary exceptions from the application of the customs laws to such extent and subject to such terms and conditions as may be prescribed in regulations or instructions of the Secretary of the Treasury.

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

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

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

(3) rescue and relief equipment and supplies for emergent temporary use in connection with floods and other disasters.

Any articles admitted under the authority of this subsection and used otherwise than for a purpose herein expressed, or not exported in such time and manner as may be prescribed in the regulations or instructions herein authorized, shall be forfeited to the United States."

VALUE

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

"SEC. 402. VALUE.

“(a) BASIS.—Except as otherwise specifically provided for, the value of imported merchandise for the purposes of this Act shall be

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'(1) the export value;

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

'(3) if neither the export value nor the United States value can be ascertained satisfactorily, then the comparative value;

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

'(5) in the case of an article with respect to which there is in effect under section 336 a rate of duty based upon the American selling price of a domestic article, then the American selling price of such domestic article. "(b) EXPORT VALUE. The export value of imported merchandise shall be the market value or the price, at the time of exportation to the United States of the merchandise undergoing appraisement, at which such or similar merchandise is freely sold or in the absence of sales, offered for sale in the principal markets of the country of exportation, in the usual wholesale quantities and in the ordinary course of trade, for exportation to the United States, plus, when not included in such price, the cost of all containers and coverings of whatever nature and all other expenses incidental to placing the merchandise in condition, packed ready for shipment to the United States.

"(c) UNITED STATES VALUE.-The United States value of imported merchandise shall be the price, at the time of exportation to the United States of the merchandise undergoing appraisement, at which such or similar imported merchandise is freely sold or in the absence of sales, offered for sale in the principal market of the United States for domestic consumption, packed ready for delivery,

in the usual wholesale quantities and in the ordinary course of trade, with allowances made for

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

'(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 (1); and

(3) the ordinary customs duties and other Federal taxes estimated to be 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 appraise ment, the United States value shall be ascertained or estimated, 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 ninety 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 ascertained or estimated by the appraiser or the appropriate court 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, 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 ascertained or esitmated 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:

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(1) Freely sold or offered for sale'—sold or 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 pur