[NOTE. The following section is sec. 709, Revenue Act of 1916.]

[SEC. 709. That there is hereby appropriated, for the purpose of defraying the expense of the establishment and maintenance of the commission, including the payment of salaries herein authorized, out of any money in the Treasury of the United States not otherwise appropriated, the sum of $300,000 for the fiscal year ending June thirtieth, nineteen hundred and seventeen, and for each fiscal year thereafter a like sum is authorized to be appropriated.]

SEC. 336. EQUALIZATION OF COMPETITIVE CONDITIONS.

[SEC. 315. (a) That in order to regulate the foreign commerce of the United States and to put into force and effect the policy of the Congress by this Act intended, whenever the President, upon investigation of the differences in costs of production of articles wholly or in part the growth or product of the United States and of like or similar articles wholly or in part the growth or product of competing foreign countries, shall find it thereby shown that the duties fixed in this Act do not equalize the said differences in costs of production in the United States and the principal competing country he shall, by such investigation, ascertain said differences and determine and proclaim the changes in classifications or increases or decreases in any rate of duty provided in this Act shown by said ascertained differences in such costs of production necessary to equalize the same.]

[(b) That in order to regulate the foreign commerce of the United States and to put into force and effect the policy of the Congress by this Act intended, whenever the President, upon investigation of the differences in costs of production of articles provided for in Title I of this Act, wholly or in part the growth or product of the United States and of like or similar articles wholly or in part the growth or product of competing foreign countries, shall find it thereby shown that the duties prescribed in this Act do not equalize said differences, and shall further find it thereby shown that the said differences in costs of production in the United States and the principal competing country can not be equalized by proceeding under the provisions of subdivision (a) of this section, he shall make such findings public, together with a description of the articles to which they apply, in such detail as may be necessary for the guidance of appraising officers. In such cases and upon the proclamation by the President becoming effective the ad valorem duty or duty based in whole or in part upon the value of the imported article in the country of exportation shall thereafter be based upon the American selling price, as defined in subdivision (f) of section 402 of this Act, of any similar competitive article manufactured or produced in the United States embraced within the class or kind of imported articles upon

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which the President has made a proclamation under subdivision (b) of this section.]

[The ad valorem rate or rates of duty based upon such American selling price shall be the rate found, upon said investigation by the President, to be shown by the said differences in costs of production necessary to equalize such differences, but no such rate shall be decreased more than 50 per centum of the rate specified in Title I of this Act upon such articles, nor shall any such rate be increased. Such rate or rates of duty shall become effective fifteen days after the date of the said proclamation of the President, whereupon the duties so estimated and provided shall be levied, collected, and paid on such articles when imported from any foreign country into the United States or into any of its possessions (except the Philippine Islands, the Virgin Islands, and the islands of Guam and Tutuila). If there is any imported article within the class or kind of articles, upon which the President has made public a finding, for which there is no similar competitive article manufactured or produced in the United States, the value of such imported article shall be determined under the provisions of paragraphs (1), (2), and (8) of subdivision (a) of section 402 of this Act.]

(a) CHANGE OF CLASSIFICATION OR DUTIES.-In order to put into force and effect the policy of Congress by this Act intended, the President shall investigate the differences in conditions of competi tion in the principal market or markets of the United States between domestic articles and like or similar competitive imported articles. If the President finds it thereby shown that the duties expressly fixed by statute do not equalize the differences in such conditions of competition in the principal market of the United States between a domestic article and a like or similar competitive article imported from the principal competing country, he shall proclaim such changes in classification or such increases or decreases in rates of duty expressly fixed by statute as in his judgment are shown by an investigation to be necessary to equalize such sufferences. [Provided, That] In no case shall the total increase or decrease of such rates of duty [shall not] exceed 50 per centum of the rates [specified in Title I of this Act, or in any amendatory Act] expressly fixed by statute.

(b) CHANGE TO AMERICAN SELLING PRICE.—If the President finds, upon any such investigation, that such differences can not be equalized by proceeding as hereinbefore provided, he shall make such findings public, together with a description of the articles to which they apply, in such detail as may be necessary for the guidance of appraising officers, and shall proclaim that the ad valorem rate of duty or rates of duty based in whole or in part upon the value of the like or similar competitive imported article in the country of exportation

shall thereafter be based upon the American selling price (as defined in subdivision (g) of section 402 of this Act) of the domestic article. The President shall further proclaim such ad valorem rate or rates of duty based upon such American selling price as in his judgment are shown by an investigation to be necessary to equalize such differences. In no case shall the total decrease of such rates of duty exceed 50 per centum of the rates expressly fixed by statute, and no such rate shall be increased.

(c) EFFECTIVE DATE OF PROCLAMATION.-Thirty days after the date of [such] any proclamation [or proclamations] under this seotion [such] the changes in classification or basis of value provided therein shall take effect, and [such] the increased or decreased duties provided therein shall be levied, collected, and paid on [such] the articles specified therein when imported from any foreign country into the United States or into any of its possessions (except the Philippine Islands, the Virgin Islands, and the islands of Guam and Tutuila).

(d) ASCERTAINMENT OF DIFFERENCES IN CONDITIONS OF COMPETITION.—In ascertaining the differences in conditions of competition between domestic articles and like or similar competitive imported articles in the principal market of the United States, the President shall take into consideration, in so far as he finds it practicable and applicable:

(1) Costs of production of the domestic article, or the price at which such article is freely offered for sale to all purchasers in the principal market of the United States, in the ordinary course of trade and in the usual wholesale quantities in such market; and

(2) Costs of production of the imported article, or the price or value set forth in its invoice, or its import cost as defined in subdivision (e) of section 332; and

(3) Other costs of the domestic article and of the imported article (in so far as not considered under paragraph (1) or (2), including (A) the cost of all containers and coverings of whatever nature and other charges and expenses incident to placing the article in condition packed ready for delivery, and (B) costs of transportation; and

(4) Advantages granted to a foreign producer by a government, person, partnership, corporation, or association in a foreign country.

(e) INVESTIGATIONS BY COMMISSION.-Investigations to assist the President in ascertaining differences in [costs of production] conditions of competition under this section shall be made by the [United States Tariff Commission] commission, and no proclamation shall be

issued under this section until such investigation shall have been made. The commission shall give reasonable public notice of its hearings and shall give reasonable opportunity to parties interested to be present, to produce evidence, and to be heard. The commission is authorized to adopt such reasonable procedure, rules, and regulations as it may deem necessary.

(f) MODIFICATION OF PROCLAMATION.-The President, proceeding as hereinbefore provided for in proclaiming changes in rates of duty, in classafication, or in the basis of value, shall, when he determines that it is shown that the differences in [costs of production] conditions of competition which led to such proclamation have changed or no longer exist [which led to such proclamation, accordingly as so shown,] modify or terminate the [same] proclamation accordingly. Nothing in this section shall be construed to authorize a transfer of an article from the dutiable list to the free list or from the free list to the dutiable list, nor a change in form of duty. Whenever it is provided in any paragraph of Title I of this Act, or in any amendatory Act, that the duty or duties shall not exceed a specified ad valorem rate upon the articles provided for in such paragraph, no rate determined under the provisions of this section upon such articles shall exceed the maximum ad valorem rate so specified.

(g) DEFINITIONS.-For the purposes of this section

(1) The term "domestic article" means an article wholly or in part the growth or product of the United States; and the term "imported article" means an article imported into the United States and wholly or in part the growth or product of a foreign country.

[(d) For the purposes of this section any coal-tar product provided for in paragraphs 27 or 28 of Title I of this Act shall be considered similar to or competitive with any imported coal-tar product which accomplishes results substantially equal to those accomplished by the domestic product when used in substantially the same manner.]

(2) An imported article shall be considered like or similar to and competitive with a domestic article if the imported article is of the same class or kind as the domestic article and

the domestic article when used in substantially the same manner and for substantially the same purpose.

plishes results substantially equal to those accomplished accom

(3) In determining the principal competing country with respect to any imported article the President shall take into consideration the quantity, value, and quality of the article imported from each competing country and any other differences in the conditions under which the article imported from each such country competes with the domestic article. A determination

by the President as to the principal competing country shall be final.

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(4) The term " United States" includes the several States and Territories and the District of Columbia.

(5) The term "foreign country" means any empire, country, dominion, colony, or protectorate, or any subdivision or subdivisions thereof (other than the United States and its possessions).

[(c) That in ascertaining the differences in costs of production, under the provisions of subdivisions (a) and (b) of this section, the President, in so far as he finds it practicable, shall take into consideration (1) the differences in conditions in production, including wages, costs of material, and other items in costs of production of such or similar articles in the United States and in competing foreign countries; (2) the differences in the wholesale selling prices of domestic and foreign articles in the principal markets of the United States; (3) advantages granted to a foreign producer by a foreign government, or by a person, partnership, corporation, or association in a foreign country; and (4) any other advantages or disadvantages in competition.]

(6) The term "costs of production", when applied with respect to either a domestic article or an imported article, includes, for a period which is representative of conditions in production of the article: (A) The price or cost of materials, labor costs, and other direct charges incurred in the production of the article and in the processes or methods employed in its production; (B) the usual general expenses, including charges for depreciation or depletion which are representative of the equipment and property employed in the production of the article and charges for rent or interest which are representative of the cost of obtaining capital or instruments of production; (C) the cost of containers and coverings of whatever nature, and other costs, charges, and expenses incident to placing the article in condition packed ready for delivery; and (D) such other factors as the President may deem applicable.

(h) RULES AND REGULATIONS OF PRESIDENT.-The President is authorized to make all needful rules and regulations for carrying out the provisions of this section.

(i) RULES AND REGULATIONS OF SECRETARY OF TREASURY.-The Secretary of the Treasury is authorized to make such rules and regulations as he may deem necessary for the entry and declaration of imported articles of the class or kind of articles upon which the President has made a proclamation under the provisions of subdivision (b) of this section and for the form of invoice required at time of entry.