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Page:United States Statutes at Large Volume 92 Part 1.djvu/920

 92 STAT. 866 5 USC 5332 °^*®-

•

7 USC 12a.

PUBLIC LAW 95-405—SEPT. 30, 1978 "(B) No Commissioner or employee of the Commission classified as a GS-16 or higher in a position excepted from the competitive service by reason of being of a confidential or policymaking character shall, for a period of one year beginning on the last day of service as such Commissioner or employee— " (i) make any appearance before the Commission, or " (ii) make any written or oral communication to the Commission, or any Commissioner or employee of the Commission, on behalf of any person (other than the United States) on any particular matter that is before the Commission, if such last day of service is more than four months after the date of enactment of this subparagraph. The restrictions in this subparagraph shall not apply to an appearance or response under a subpena issued by the Commission, or any matter of an exclusively personal and individual nature."; (11) inserting " (A) " immediately after the designation of paragraph (8) (7 U.S.C.4a(g)); (12) striking out in the first sentence of paragraph (8) "establish a separate office within the Department of Agriculture to be staffed with employees of the Commission for the purpose of maintaining" and inserting in lieu thereof "maintain"; (13) adding at the end of paragraph (8) a new subparagraph (B) as follows: "(B)(i) The Commission shall maintain communications with the Department of the Treasury, the Board of Governors of the Federal Reserve System, and the Securities and Exchange Commission for the purpose of keeping such agencies inWj informed of Commission activities that relate to the responsibilities of those agencies, for the purpose of seeking the views of those agencies on such activities, and for considering the relationships between the volume and nature of investment and trading in contracts of sale of a commodity for future delivery and in securities and financial instruments under the jurisdiction of such agencies, "(ii) When a board of trade applies for designation as a contract market involving transactions for future delivery of any security issued or guaranteed by the United States or any agency thereof, the Commission shall promptly deliver a copy of such application to the Department of the Treasury and the Board of Governors of the Federal Reserve System. The Commission may not designate a board of trade as a contract market based on such application until forty-five days after the date the Commission delivers the application to such agencies or until the Commission receives comments from each of such agencies on the application, whichever period is shorter. Any comments received by the Commission from such agencies shall be included as part of the public record of the Commission's designation proceeding. In designating, or refusing, suspending, or revoking the designation of, a board of trade as a contract market involving transactions for future delivery referred to in this clause or in considering possible emergency action under section 8a(9) of this Act with respect to such transactions, the Commission shall take into consideration all comments it receives from the Department of the Treasury and the Board of Governors of the Federal Reserve System and shall consider the effect that any such designation, suspension, revocation, or emergency action may have on the debt financing requirements of the United States Government and the continued efficiency and integrity of the underlying market for government securities.

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Page:United States Statutes at Large Volume 92 Part 1.djvu/921

 PUBLIC LAW 95-405—SEPT. 30, 1978

92 STAT. 867

"(iii) The provisions of this subparagraph shall not create any rights, liabilities, or obligations upon which actions may be brought against the Commission."; (14) striking out in paragraph (9)(A) (7 U.S.C. 4 a (h)(l)) "Senate Committee on Agriculture and Forestry" and inserting in lieu thereof "Senate Committee on Agriculture, Nutrition, and Forestry"; and (15) striking out in paragraph (9)(B) (7 U.S.C. 4a(h)(2)) "Senate Committee on Agriculture and Forestry" and inserting in lieu thereof "Senate Committee on Agriculture, Nutrition, and Forestry". OPTIONS TRANSACTIONS; TECHNICAL AMENDMENTS

SEC. 3. Section 4c of the Commodity Exchange Act (7 U.S.C. 6c) is amended by— (1) striking out in the last sentence of subsection (a) "not have been disapproved" and inserting in li6u thereof "have been approved"; (2) striking out in subsection (b) "Senate Committee on Agriculture and Forestry" and inserting in lieu thereof "Senate Committee on Agriculture, Nutrition, and Forestry"; and (3) adding at the end thereof new subsections (c), (d), and (e) as follows: "(c) Notwithstanding the provisions of subsection (b) of this Report to section, no person may, after the enactment of the Futures Trading congressional Act of 1978, offer to enter into, enter into, or confirm the execution committees. of any commodity option transaction involving any commodity Regulations. regulated under this Act but not specifically set forth in section 2(a) of this Act prior to the enactment of the Commodity Futures Trad- Ante, p. 865. ing Commission Act of 1974, until (1) the Commission transmits to 7 USC 1 notts. the House Committee on Agriculture and the Senate Committee on Agriculture, Nutrition, and Forestry documentation of its ability to regulate successfully such transactions, including a copy of the Commission's proposed rules and regulations, and (2) the expiration of thirty calendar days of continuous session of Congress after the date of such transmittal. The Commission is not precluded from transmitting, at any time, documentation relating to its ability to regulate such transactions regarding individual commodities, classes of commodities, or regulation of such transactions on specific boards of trade. Nothing in this subsection shall affect any rights or obligations arising out of any transactions subject to the provisions of this subsection entered into, or the execution of which was confirmed, prior to October 1, 1978: Provided, That this prohibition shall not apply to any transaction expressly permitted under rules or regulations prescribed by the Commission, before or after the date of enactment of the Futures Trading Act of 1978, to be offered to be Ante, p. 865 entered into, entered into, or confirmed, in which the purchaser is a producer, processor, commercial user of, or a merchant handling, the commodity involved in the transaction, or the products or byproducts thereof. "(d) Notwithstanding the provisions of subsection (c) of this section— "(1) any person domiciled in the United States who on May 1, Regulations. 1978, was in the business of granting an option on a physical commodity and was in the business of buying, selling, producing, or otherwise using that commodity, may continue to grant or issue options on that commodity in accordance with Commission regu-

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license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


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Page:United States Statutes at Large Volume 92 Part 1.djvu/922

 92 STAT. 868

Regulations.

":

PUBLIC LAW 9 5 - 4 0 5 — S E P T. 30, 1978 lations in effect on August 17, 1978, until t h i r t y days after the effective date of regulations issued by the Commission under clause (2) of this subsection: Provided, That if such person files an \ application for registration under the regulations issued under clause (2) of this subsection within thirty days after the effective date of such regulations, that person may continue to g r a n t or issue options pending a final determination by the Commission on the application; and 'V " (2) the Commission shall issue regulations that permit grantors and futures commission merchants to offer to enter into, enter into, or confirm the execution of, any commodity option transaction on a physical commodity subject to the provisions of subsection (b) of this section if— " (A) the g r a n to r is a person domiciled in the United States who— " (i) is in the business of buying, selling, producing, or otherwise using the underlying commodity; " (ii) at all times has a net worth of at least $5,000,000 certified annually by an independent public accountant using generally accepted accounting principles; " ( l i i) notifies the Commission and every futures commission merchant offering the grantor's option if the g r a n to r knows or has reason to believe that the grantor's net worth has fallen below $5,000,000; " ( i v) segregates daily, exclusively for the benefit of purchasers, money, exempted securities (within the meaning of section 8(a) (12) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a) ( 1 2)), commercial paper, bankers' acceptances, commercial bills, or unencumbered warehouse receipts, equal to an amount by which the value of each transaction exceeds the amount received or to be received by the grantor for such transaction; " (v) provides an identification number for each transaction; and " ( v i) provides confirmation of all orders for such transactions executed, including the execution price and ' • a transaction identification number; " (B) the futures commission merchant is a person who— " (i) has evidence that the grantor meets the requirements specified in subclause (A) of this clause; " ( i i) treats and deals with all money, securities, or property received from its customers as payment of the purchase price in connection with such transactions, as belonging to such customers until the expiration of the term of the option, or, if the customer exercises the option, until all rights of the customer under the commodity option transaction have been fulfilled; " ( i i i) records each transaction in its customer's name by the transaction identification number provided by the grantor; " ( i v) provides a disclosure statement to its customers, under regulations of the Commission, that discloses, among other things, all costs, including any markups or commissions involved in such transaction; and 1 " (C) the g r a n to r and futures commission merchant comply with any additional uniform and reasonable terms and conditions the Commission may prescribe, including registration with the Commission.

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Page:United States Statutes at Large Volume 92 Part 1.djvu/923

 PUBLIC LAW 95-405—SEPT. 30, 1978

92 STAT. 869

The Commission may permit persons not domiciled in the United Regulations. States to grant options under this subsection under such additional rules, regulations, and orders as the Commission may adopt to provide protection to purchasers that are substantially the equivalent of those applicable to grantors domiciled in the United States. The Commis- Hearing, sion may terminate the right of any person to grant, offer, or sell options under this subsection only after a hearing, including a finding that the continuation of such right is contrary to the public interest: Provided, That pending the completion of such termination proceedings, the Conunission may suspend the right to grant, offer, or sell options of any person whose activities in the Commission's judgment present a substantial risk to the public interest. " (e) The Commission may adopt rules and regulations, after public Regulations, notice and opportunity foi' a hearing on the record, prohibiting the granting, issuance, or sale of options permitted under subsection (d) of this section if the Commission determines that such options are contrary to the public interest.". •

CUSTOMER FUNDS AND PROPERTY

SEC. 4. Section 4d of the Commodity Exchange Act (7 U.S.C. 6d) is amended by inserting in paragraph (2) after ^Provided further,^ the following: "That in accordance with such terms and conditions as the Commission may prescribe by rule, regulation, or order, such money, securities, and property of the customers of such futures commission merchant may be commingled and deposited as provided in this section with any other money, securities, and property received by such futures commission merchant and required by the Commission to be separately accounted for and treated and dealt with as belonging to the customers of such futures commission merchant: Provided further,^\ R E G I S T R A T I O N OF F U T U R E S C 0 3 I M I S S I 0 N MERCHANTS AND FLOOR BROKERS

SEC. 5. Section 4(f)(1) of the Commodity Exchange Act (7 U.S.C. 6f (1)) is amended by striking out in the third sentence "All registrations shall expire on the 31st day of December of the year for which issued" and inserting in lieu thereof the following: "Each registration shall expire on December 81 of the year for which issued or at such other time, not less than one year from the date of issuance, as the Commission may by rule, regulation, or order prescribe". TECHNICAL

AMENDMENT

SEC 6. Section 4g(3) of the Commodity Exchange Act (7 U.S.C. 6g(3)) is amended by striking out "Brokers" and inserting in lieu thereof "Floor brokers". R E G I S T R A T I O N O F ASSOCIATED PERSONS; AUTHORIZATION FOR REGISTRATION OF ASSOCIATED PERSONS BY A REGISTERED FUTURES ASSOCIATION

SEC 7. Section 4k of the Commodity Exchange Act (7 U.S.C. 6k) is amended by— (1) amending the last sentence of subsection (2) to read as follows: "Such registration shall expire two years after the effective date thereof or at such other time, not less than one year from the date of issuance thereof, as the Commission may by rule, regulation, or order prescribe and shall be renewed upon application therefor, unless the registration has been suspended (and the

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Page:United States Statutes at Large Volume 92 Part 1.djvu/924

 92 STAT. 870 7 USC 9.

PUBLIC LAW 95-405—SEPT. 30, 1978 period of such suspension has not expired) or revoked after notice and hearing as prescribed in section 6(b) of this Act: Provided, That upon initial registration, unless the Commission otherwise prescribes by rule, regulation, or order, the effective period of such registration shall be not more than two years nor less than one year from the effective date thereof."; and (2) adding at the end thereof a new subsection (3) as follows: "(3) The Commission may authorize a registered futures association to perform any portion of the registration functions under this section, in accordance with rules approved by the Commission, and subject to the provisions of this Act applicable to registrations granted by the Commission.". REGISTRATION OF COMMODITY TRADING ADVISORS

Ante, p. 865. 7 USC 1 note.

7 USC 18.

SEC. 8. Section 4m of the Commodity Exchange Act (7 U.S.C. 6m) is amended by adding at the end thereof a new sentence as follows: "The provisions of this section shall not apply to any commodity trading advisor who is a (1) dealer, processor, broker, or seller in cash market transactions of any commodity specifically set forth in section 2(a) of this Act prior to the enactment of the Commodity Futures Trading Commission Act of 1974 (or products thereof) or (2) nonprofit, voluntary membership, general farm organization, who provides advice on the sale or purchase of any commodity specifically set forth in section 2(a) of this Act prior to the enactment of the Commodity Futures Trading Commission Act of 1974; if the advice by the person described in clause (1) or (2) of this sentence as a commodity trading advisor is solely incidental to the conduct of that person's business: Provided, That such person shall be subject to proceedings under section 14 of this Act.". REGISTRATION OF COMMODITY TRAINING ADVISORS AND COMMODITY POOL OPERATORS

SEC. 9. Section 4n of the Commodity Exchange Act (7 U.S.C. 6n) is amended by— (1) striking out subsection (2) and redesignating subsections (3), (4), (5), (6), and (7) as subsections (2), (3), (4), (5), and (6), respectively; (2) striking out in subsection (2), as redesignated by clause (1) of this section, "All registrations" and inserting in lieu thereof "Each registration"; and (3) inserting in subsection (2), as redesignated by clause (1) of this section, after "year," the following: "or at such other time, not less than one year from the effective date thereof, as the Commission may by rule, regulation, or order prescribe,". PROHIBITION

7 USC do.

ON FRAUDULENT TRANSACTIONS BY COMMODITY ADVISORS AND COMMODITY POOL OPERATORS

TRADING

SEC, 10. Section 4o(l) of the Commodity Exchange Act (7 U.S.C. 6o(l)) is amended by striking out "registered under this Act". ARBITRATION BY REGISTERED FUTURES ASSOCIATION

SEC. 11. Section 5a(11) of the Commodity Exchange Act (7 U.S.C. 7a(11)) is amended by inserting after "otherwise" the following: "(such as by delegation to a registered futures association having rules providing for such procedures) ".

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Page:United States Statutes at Large Volume 92 Part 1.djvu/925

 PUBLIC LAW 95-405—SEPT. 30, 1978

92 STAT. 871

PROCESS FOR APPROVAL OF BYLAWS, RULES, REGULATIONS, AND RESOLUTIONS OF CONTRACT MARKETS

SEC. 12. Section 5a (12) of the Commodity Exchange Act (7 U.S.C. 7a (12)) is amended by— (1) inserting in the second sentence after "receipt" the following: "(or within sixty days of their receipt if the Commission determines them to be of major economic significance)"; and (2) inserting after the first sentence three new sentences as follows: "At least thirty days before approving any such bylaws, rules, regulations, and resolutions of major economic significance, as determined by the Commission, the Commission shall publish in the Federal Register such bylaws, rules, regulations, and resolutions. The Commission shall give interested persons an opportunity to participate in the approval process through the submission of written data, views, or arguments. The determination by the Commission whether any such bylaws, rules, regulations, or resolutions are of major economic significance shall be final and not subject to judicial review.". HEARING ON THE RECORD FOR REFUSAL, SUSPENSION, OR REVOCATION OF CONTRACT MARKET DESIGNATION; COMMISSION SUBPENA POWER

SEC. 13. Section 6 of the Commodity Exchange Act is amended by— (1) inserting in the second sentence "on the record" after "a hearing" (7 U.S.C. 8); (2) inserting in the second sentence of paragraph (a) "on the record" after "hearing" (7 U.S.C. 8); and (3) striking out the third sentence of paragraph (b) (7 U.S.C. 15) and inserting in lieu thereof the following: "For the purpose of securing effective enforcement of the provisions of this Act and for the purpose of any investigation or proceeding under this Act, any member of the Commission or any Administrative Law Judge or other officer designated by the Commission may administer oaths and affirmations, subpena witnesses, compel their attendance, take evidence, and require the production of any books, papers, correspondence, memoranda, or other records that the Commission deems relevant or material to the inquiry. The attendance of witnesses and the production of any such records may be required from any place in the United States or any State at any designated place of hearing. In case of contumacy by, or refusal to obey a subpena issued to, any person, the Commission may invoke the aid of any court of the United States within the jurisdiction in which the investigation or proceeding is conducted, or where such person resides or transacts business, in requiring the attendance and testimony of witnesses and the production of books, papers, correspondence, memoranda, and other records. Such court may issue an order requiring such person to appear before the Commission or member or Administrative Law Judge or other officer designated by the Commission, there to produce records, if so ordered, or to give testimony touching the matter under investigation or in question. Any failure to obey such order of the court may be punished by the court as a contempt thereof. All process in any such case may be served in the judicial district wherein such person is an inhabitant or transacts business or wherever such person may be found.".

Publication in Federal Register.

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Page:United States Statutes at Large Volume 92 Part 1.djvu/926

 92 STAT. 872

PUBLIC LAW 95-405—SEPT. 30, 1978 HEARING ON THE RECORD FOR CEASE AND DESIST ORDERS AND IMPOSITION OF CIVIL PENALTY

SEC. 14. Section 6b of the Commodity Exchange Act (7 U.S.C. 13a) is amended by inserting in the first sentence "on the record" after "hearing". JURISDICTION OF THE STATES

7 USC 13a-2.

SEC. 15. The Commodity Exchange Act is amended by adding after section 6c a new section 6d as follows: "SEC. 6d. (1) Whenever it shall appear to the attorney general of any State, the administrator of the securities laws of any State, or such other official as a State may designate, that the interests of the residents of that State have been, are being, or may be threatened or adversely affected because any person (other than a contract market, clearinghouse, or floor broker) has engaged in, is engaging or is about to engage in, any act or practice constituting a violation of any provision of this Act or any rule, regulation, or order of the Commission thereunder, the State may bring a suit in equity or an action at law on behalf of its residents to enjoin such act or practice, to enforce compliance with this Act, or any rule, regulation, or order of the Commission thereunder, to obtain damages on behalf of their residents, or to obtain such further and other relief as the court may deem appropriate. "(2) The district courts of the United States, the United States courts of any territory, and the District Court of the United States for the District of Columbia, shall have jurisdiction of all suits in equity and actions at law brought under this section to enforce any liability or duty created by this Act or any rule, regulation, or order of the Commission thereunder, or to obtain damages or other relief with respect thereto. Upon proper application, such courts shall also have jurisdiction to issue writs of mandamus, or orders affording like relief, commanding the defendant to comply with the provisions of this Act or any rule, regulation, or order of the Commission thereunder, including the requirement that the defendant take such action as is necessary to remove the danger of violation of this Act or of any such rule, regulation, or order. Upon a proper showing, a permanent or temporary injunction or restraining order shall be granted without bond. "(3) Immediately upon instituting any such suit or action, the State shall serve written notice thereof upon the Commission and provide the Commission with a copy of its complaint, and the Commission shall have the right to (A) intervene in the suit or action and, upon doing so, shall be heard on all matters arising therein, and (B) file petitions for appeal. " (4) Any suit or action brought under this section in a district court of the United States may be brought in the district wherein the defendant is found or is an inhabitant or transacts business or wherein the act or practice occurred, is occurring, or is about to occur, and process in such cases may be served in any district in which the defendant is an inhabitant or wherever the defendant may be found. " (5) For purposes of bringing any suit or action under this section, nothing in this Act shall prevent the attorney general, the administrator of the State securities laws, or other duly authorized State officials from exercising the powers conferred on them by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence.

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Page:United States Statutes at Large Volume 92 Part 1.djvu/927

 PUBLIC LAW 95-405—SEPT. 30, 1978 "(6) For purposes of this section, 'State' means any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States. "(7) Nothing contained in this section shall prohibit an authorized State official from proceeding in State court on the basis of an alleged violation of any general civil or criminal anti fraud statute of such

92 STAT. 873 'State.'

State.". DISCLOSURE TO THE PUBLIC OF TRADERS AND THE I R POSITIONS ON BOARDS o r TRADE

SEC. 16. Section 8 of the Commodity Exchange Act (7 U.S.C. 12, 12-1,12-2, and 12-3) is amended to read as follows: "SEC, 8. (a) For the efficient execution of the provisions of this Act, and in order to provide information for the use of Congress, the Commission may make such investigations as it deems necessary to ascertain the facts regarding the operations of boards of trade and other persons subject to the provisions of this Act. The Commission may publish from time to time the results of any such investigation and such general statistical information gathered therefrom as it deems of interest to the public: Provided, That except as otherwise specifically authorized in this Act, the Commission may not publish data and information that would separately disclose the business transactions or market positions of any person and trade secrets or names of customers. " (b) The Commission may disclose publicly any data or information that would separately disclose the market positions, business transactions, trade secrets, or names of customers of any person when such disclosure is made in connection with a congressional proceeding, or in an administrative or judicial proceeding brought under this Act. "(c) The Commission may make or issue such reports as it deems necessary, or such opinions or orders as may be required under other provisions of law, relative to the conduct of any board of trade or to the transactions of any person found guilty of violating the provisions of this Act or the rules, regulations, or orders of the Commission thereunder in proceedings brought under section 6 of this Act. In any such report or opinion, the Commission may set forth the facts as to any actual transaction or any information referred to in subsection (b) of this section, if such facts or information have previously been disclosed publicly in connection with a congressional proceeding, or in an administrative or judicial proceeding brought under this Act. "(d) The Commission, upon its own initiative or in cooperation with existing governmental agencies, shall investigate the marketing conditions of commodities and commodity products and byproducts, including supply and demand for these commodities, cost to the consumer, and handling and transportation charges. It shall also compile and furnish to producers, consumers, and distributors, by means of regular or special reports, or by such other methods as it deems most effective, information respecting the commodity markets, together with information on supply, demand, prices, and other conditions in this and other countries that affect the markets. "(e) The Commission may disclose and make public, where such information has previously been disclosed publicly in accordance with the provisions of this section, the names and addresses of all traders on the boards of trade on the commodity markets with respect to whom the Commission has information, and any other information in the possession of the Commission relating to the amount of commodities

Investigations
 * °<^ reports,

7 USC 8, 9, 9a, 13b, 15.

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Page:United States Statutes at Large Volume 92 Part 1.djvu/928

 92 STAT. 874

Report to Congress.

Reviews and audits.

PUBLIC LAW 95-405—SEPT. 30, 1978 purchased or sold by each such trader. Upon the request of any committee of either House of Congress, acting within the scope of its jurisdiction, the Commission shall furnish to such committee the names and addresses of all traders on such boards of trade with respect to whom the Commission has information, and any other information in the possession of the Commission relating to the amount of any commodity purchased or sold by each such trader. Upon the request of any department or agency of the Executive Branch of the Government of the United States, acting within the scope of its jurisdiction, the Commission may furnish to such department or agency any information in the possession of the Commission obtained in connection with the administration of this Act. However, any information furnished under this subsection to any Federal department or agency shall not be disclosed by such department or agency except in any action or proceeding under the laws of the United States to which it, the Commission, or the United States is a party. "(f) The Commission shall submit to Congress a written report within one hundred and twenty days after the end of each fiscal year detailing the operations of the Commission during such fiscal year. The Commission shall include in such report such information, data, and legislative recommendations as it deems advisable with respect to the administration of this Act and its powers and functions under this Act. "(g) The Comptroller General of the United States shall conduct reviews and audits of the Commission and make reports thereon. For the purpose of conducting such reviews and audits, the Comptroller General shall be furnished such information regarding the powers, duties, organizations, transactions, operations, and activities of the Commission as the Comptroller General may require and the Comptroller General and the duly authorized representatives of the Comptroller General shall, for the purpose of securing such information, have access to and the right to examine any books, documents, papers, or records of the Commission, except that in reports the Comptroller General shall not include data and information that would separately disclose the business transactions of any person and trade secrets or names of customers, although such data shall be provided upon request by any committee of either House of Congress acting within the scope of its jurisdiction.". FINGERPRINTING

OF APPLICANTS FOR REGISTRATION; LIMITATION PDBMCATION OF CERTAIN INFORMATION

ON

SEC. 17. Section 8a of the Commodity Exchange Act (7 U.S.C. 12a) is amended by— (1) inserting in paragraph (1) after "by the Commission" the following: ", which may require the applicant, and any persons associated with the applicant as the Commission may specify, to be fingerprinted and to submit, or cause to be submitted, such fingerprints to the Attorney General for identification and appropriate processing"; and (2) striking out in paragraph (6) "and to publish". DISCLOSURE OF RESULTS OF EXCHANGE DISCIPLINARY PROCEEDINGS

SEC. 18. Section 8c(l)(B) of the Commodity Exchange Act (7 U.S.C. 12c(1)(B)) is amended by amending the last sentence to read as follows: "An exchange shall make public its findings and the reasons for the exchange action in any such proceeding, including the action

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Page:United States Statutes at Large Volume 92 Part 1.djvu/929

 PUBLIC LAW 95-405—SEPT. 30, 1978

92 STAT. 875

taken or the penalty imposed, but shall not disclose the evidence therefor, except to the person who is suspended, expelled, or disciplined, or denied access, and to the Commission.". CRIMINAL

PENALTIES

SEC. 19. Section 9 of the Commodity Exchange Act (7 U.S.C. 13) is amended by— (1) stiiking out in subsection (a) "$100,000" and inserting in lieu thereof "$500,000"; and inserting immediately after the first sentence of subsection (a) the following: "Notwithstanding the foregoing, in the case of any violation described in the foregoing sentence by a person who is an individual, the fine shall not be more than $100,000, together with the costs of prosecution."; (2) striking out in subsection (b) "$100,000" and inserting in lieu thereof "$500,000"; and inserting before the period at the end of subsection (b) the following:", or knowingly to violate the provisions of section 4, section 4b, section 4c (b) through section 4c(e), section 4h, section 4o(l), or section 19 of this Act, or knowingly to make any false or misleading statement of a material fact in any registration application or report filed with the Commission, or knowingly to omit in any application or report any material fact that is required to be stated therein. Notwithstanding the foregoing, in the case of any violation described in the foregoing sentence by a person who is an individual, the fine shall not be more than $100,000, together with the costs of prosecution"; (3) amending subsection (c) to read as follows: " (c) Except as provided in subsections (a), (b), (d), and (e) of this section, it shall be a misdemeanor punishable Ijy a fine of not more than $100,000 or imprisonment for not more than one year, or both, together with the costs of prosecution, for any person to violate any provisions of section 4a, section 4c(a), section 4d, section 4e, section 4i, section 4k. section 4m, section 4o(2), or section 8b, or to fail to evidence any contract mentioned in section 4 of this Act by a record in writing as therein required."; (4) striking out in subsection (d) "$10,000" and inserting in lieu thereof "$100,000"; and (5) striking out in subsection (e) "$10,000" and inserting in lieu thereof "$100,000".

7 USC 6, 6b, 6c, 6h, 6o. ""^^ P- ^^^•

7 USC 6a, 6c, 6d, 6e, 6i, 6k, ^™' ^ ' l^^-

AUTHORIZATION FOR APPROPRIATIONS

SEC. 20. Section 12(d) of the Commodity Exchange Act (7 U.S.C. 16(d)) is amended to read as follows: "(d) There are hereby authorized to be appropriated to carry out the provisions of this Act such sums as may be required for each of the fiscal years during the period beginning October 1, 1978, and ending September 30, 1982.". REPARATIONS PROCEEDINGS

SEC. 21. Section 14 of the Commodity Exchange Act (7 U.S.C. 18) is amended by—

39-194 O—80—pt. 1

59: QL3

•

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Page:United States Statutes at Large Volume 92 Part 1.djvu/930

 92 STAT. 876

PUBLIC LAW 95-405—SEPT. 30, 1978 (1) striking out in subsection (a) "registered" and inserting in lieu thereof "who is registered or required to be registered"; (2) striking out in subsection (b) "$2,500" and inserting in lieu thereof "$5,000"; and (3) striking out in subsection (c) "$2,500" wherever it appears and inserting in lieu thereof "$5,000". REGISTERED FUTURES ASSOCIATION

SEC. 22. Section 17 of the Commodity Exchange Act (7 U.S.C. 21) is amended by— (1) striking out in subsection (b)(3)(B) "(7 U.S.C. 9) "; (2) striking out in subsection (b) (10) "$5,000" and inserting in lieu thereof "$15,000"; (3) striking out in subsection (1) "title" each time that word appears and inserting in lieu thereof "Act"; and (4) redesignating subsection (m) as subsection (n), and inserting after subsection (1) a new subsection (m) as follows: " (m) Notwithstanding any other provision of law, the Commission may approve rules of futures associations that, directly or indirectly, require persons eligible for membership in such associations to become members of at least one such association, upon a determination by the Commission that such rules are necessary or appropriate to achieve the purposes and objectives of this Act.". L E V E R A G E TRANSACTIONS

7 USC 23. 7 USC 2, 4, 4a. 7 USC I note.

Regulations.

SEC. 23. The Commodity Exchange Act is amended by adding at the end thereof a new section 19 as follows: "SEC, 19. (a) No person shall offer to enter into, enter into, or confirm the execution of, any transaction for the delivery of any commodity specifically set forth in section 2(a) of this Act prior to the enactment of the Commodity Futures Trading Commission Act of 1974 under a standardized contract commonly known to the trade as a margin account, margin contract, leverage account, or leverage contract, or under any contract, account, arrangement, scheme, or device that the Commission determines serves the same function or functions as such a standardized contract, or is marketed or managed in substantially the same manner as such a standardized contract. "(b) No person shall offer to enter into, enter into, or confirm the execution or any transaction for the delivery of silver bullion, gold bullion, or bulk silver coins or bulk gold coins, under a standardized contract described in subsection (a) of this section, contrary to any rule, regulation, or order of the Commission designed to ensure the financial solvency of the transaction or prevent manipulation or fraud: Provided, That such rule, regulation, or order may be made only after notice and opportunity for hearing. "(c) The Commission may prohibit or regulate any transactions, under a standardized contract described in subsection (a) of this section, involving any other commodities under such terms and conditions as the Commission shall initially prescribe by October 1, 1979: Provided, That any such order, rule, or regulation may be made only after notice and opportunity for hearing: Provided further, That the Commission may set different terms and conditions for such transactions involving different commodities.

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Page:United States Statutes at Large Volume 92 Part 1.djvu/931

 PUBLIC LAW 95-405—SEPT. 30, 1978

92 STAT. 877

"(d) If the Commission determines that any transaction under sub- Regulations, sections (b) and (c) of this section is a contract for future delivery within the meaning of this Act, such transaction shall be regulated in accordance with the applicable provisions of this Act.". REPEAL o r UEVERAGE TRANSACTION PROVISION I N THE 1974 ACT

SEC. 24. Section 217 of the Commodity Futures Trading Commission Act of 1974 (7 U.S.C. 15a) is hereby repealed. USE I M M U N I T Y

SEC. 25. Section 6001 of part V of title 18 of the United States Code (18 U.S.C. 6001) is amended by inserting after "Civil Aeronautics Board," the following: "the Commodity Futures Trading Commission,". PLAN FOR USER FEES

SEC. 26. Notwithstanding any other provision of law, the Commodity 7 USC 16a. Futures Trading Commission may develop and implement a plan to charge and collect reasonable fees to cover the estimated cost of regulating transactions under the jurisdiction of the Commission. How- Report to ever, prior to implementing such a plan, the Commission shall report congressional its intention to do so to the House Committee on Agriculture and the committees. Senate Committee on Agriculture, Nutrition, and Forestry. The Commission shall include in its report the feasibility and desirability of collecting such fees. Any plan developed under this section shall not be implemented until approved by the House Committee on Agriculture and the Senate Committee on Agriculture, Nutrition, and Forestry. Fees collected under any plan approved under this section shall be deposited in the Treasury of the United States as miscellaneous receipts. POTATO FUTURES

STUDY

SEC. 27. Within one year of the effective date of this Act, the Secretary of Agriculture shall— (1) conduct a comprehensive study of the marketing of Irish potatoes and of the making and trading of contracts of sale for the future delivery of Irish potatoes, including rules and regulations pertaining to such trading issued by the Commodity Futures Trading Commission or any contract market designated by the Commission; and (2) submit to each House of Congress a detailed report on the results of such study.

7 USC 20 note.

Report to Congress.

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Page:United States Statutes at Large Volume 92 Part 1.djvu/932

 92 STAT. 878 Legislative recommendations. '

PUBLIC LAW 95-405—SEPT. 30, 1978 The report shall also include any proposals the Secretary may have concerning any legislation needed to implement such recommendations and concerning any modifications and rules and regulations needed to improve regulation of such contracts by the Commission or any contract market designated by the Commission. EFFECTIVE DATE

7 USC 2 note.

SEC. 28. Except as otherwise provided in this Act, the provisions of this Act shall become effective October 1, 1978. Approved September 30, 1978.

LEGISLATIVE HISTORY: HOUSE REPORTS: No. 95-1181 accompanying H.R. 10285 (Comm. on Agriculture) and No. 95-1628 (Comm. of Conference). SENATE REPORTS: No. 95-850 (Comm. on Agriculture, Nutrition, and Forestry) and No. 95-1239 (Comm. of Conference). CONGRESSIONAL RECORD, Vol. 124 (1978): July 12, considered and passed Senate. July 24-26, H.R. 10285 considered and passed House; proceedings vacated and S. 2391, amended, passed in lieu. Sept. 28, Senate agreed to Conference report. Sept. 29, House agreed to Conference report. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 14, No. 40: Oct. 2, Presidential statement.

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Page:United States Statutes at Large Volume 92 Part 1.djvu/933

 PUBLIC LAW 95-406—SEPT. 30, 1978

92 STAT. 879

Public Law 95-406 95th Congress Joint Resolution To provide for a temporary extension of certain Federal Housing Administration mortgage insurance and related authorities, of the national flood insurance program, of the crime insurance and riot reinsurance programs, of certain rural housing authorities, and for other purposes.

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, EXTENSION OF FEDERAL HOUSING ADMINISTRATION MORTGAGE INSURANCE AUTHORITIES

SECTION 1. (a) Section 2(a) of the National Housing Act is amended by striking out "October 1, 1978" in the first sentence and inserting in lieu thereof "November 1, 1978". (b) Section 217 of such Act is amended by striking out "September 30, 1978" and inserting in lieu thereof "October 31, 1978". (c) Section 221(f) of such Act is amended by striking out "September 30, 1978" in the fifth sentence and inserting in lieu thereof "October 31, 1978". (d) Section 235(m) of such Act is amended by striking out "September 30, 1978" and inserting in lieu thereof "October 31, 1978". (e) Section 236(n) of such Act is amended by striking out "September 30, 1978" and inserting in lieu thereof "October 31, 1978". (f) Section 244(d) of such Act is amended— (1) by striking out "September 30, 1978" in the first sentence and inserting in lieu thereof "October 31, 1978"; and (2) by striking out "October 1, 1978" in the second sentence and inserting in lieu thereof "November 1, 1978". (g) Section 245 of such Act is amended by striking out "September 30, 1978" where it appears and inserting in lieu thereof "October 31, 1978". (h) Section 809(f) of such Act is amended by striking out "September 30, 1978" in the second sentence and inserting in lieu thereof "October 31, 1978". (i) Section 810(k) of such Act is amended by striking out "September 30, 1978" in the second sentence and inserting in lieu thereof "October 31, 1978". (j) Section 1002(a) of such Act is amended by striking out "September 30, 1978" in the second sentence and inserting in lieu thereof "October 31, 1978". (k) Section 1101(a) of such Act is amended by striking out "September 30, 1978" in the second sentence and inserting in lieu thereof "October 31, 1978".

Sept. 30, 1978 [S.J. Res. 165]

Federal Housing Administration, temporary authority extension. 12 USC 1703.

12 USC 1715h. 12 USC 1715/.

12 USC 1715z. 12 USC 1715Z-1. 12 USC 1715Z-9.

12 USC 1715Z-10. 12 USC 1748h-l.

''

12 USC 1748h-2. 12 USC 1749bb. 12 USC 1749aaa.

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Author:Robert Lockhart Hobson

Works

 * Porcelain: Oriental, Continental and British (1906)
 * Chinese Pottery and Porcelain (1915)
 * The Art of the Chinese Potter (1923)
 * The Wares of the Ming Dynasty (1923)
 * The Later Ceramic Wares of China (1925)
 * Marks on Pottery and Porcelain (with W. Burton) (1928)
 * Catalogue and Guide of English Pottery and Porcelain in British Museum

Contribution to EB1911

 * (Medieval and Later Italian and Persian, Syrian, Egyptian and Turkish)

title: Author:Robert Lockhart Hobson


text:
Page:United States Statutes at Large Volume 92 Part 1.djvu/934

 92 STAT. 880

PUBLIC LAW 95-406—SEPT. 30, 1978 KXTENSION OF FJ.EXIBLE INTEREST RATE AUTHORITY

SEC. 2. Section 3(a) of the Act entitled " A n Act to amend chapter 37 of title 38 of the United States Code with respect to the veterans' home loan program, to amend the National Housing Act with respect to interest rates on insured moiigages, and for other purposes", approved May 7, 1968, as amended (12 U.S.C. 1709-1), is amended by striking out "October 1, 1978" and inserting in lieu thereof "November 1, 1978". EXTENSION OF EMERGENCY HOME PURCHASE ASSISTANCE ACT OF

12 USC 1723e note.

1974

SEC. 3. Section 3(b) of the Emergency Home Purchase Assistance Act of 1974 is amended by striking out "October 1, 1978" and inserting in lieu thereof "November 1, 1978". EXTENSION OF NEW COMMUNITIES SPECtAL. P L A N N I N G GRANTS AUTHORITY

42 USC 4521.

SEC. 4. Section 720(a) of the Housing and Urban Development Act of 1970 is amended by striking out "October 1, 1978" and inserting in lieu thereof "November 1, 1978". EXTENSION OF CRIME INSURANCE AND RIOT REINSURANCE PROGRAMS

12 USC 1749bbb.

SEC. 5. Section 1201 of the National Housing Act is amended— (1) by striking out, both places it appears in subsection (b), "September 30, 1978" and inserting in lieu thereof "October 31, 1978"; and (2) by striking out in subsection (b)(1)(A) "September 30, 1981^ and inserting in lieu thereof "October 31, 1981". EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM

42 USC 4026. 42 USC 4056.

SEC. 6. (a) Section 1319 of the National Flood Insurance Act of 1968 is amended by striking out "September 30, 1978" and inserting in lieu thereof "October 31, 1978". (b) Section 1336(a) of such Act is amended by striking out "September 30, 1978" and inserting in lieu thereof "October 31, 1978". EXTENSION OF RURAL HOUSING AUTHORITIES

42 USC 1483.

SEC. 7. (a) Section 513 of the Housing Act of 1949 is amended by striking out "September 30, 1978" where it appears in clauses (b), (c), and (d) and inserting in lieu thereof "October 31, 1978".

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Page:United States Statutes at Large Volume 92 Part 1.djvu/935

 PUBLIC LAW 95-406—SEPT. 30, 1978

92 STAT. 881

(b) Section 515 of such Act is amended by striking out "Septem- 42 USC 1485. ber 30, 1978" where it appears in paragraph (b)(5) and inserting in lieu thereof "October 31, 1978". (c) Section 517(a)(1) of such Act is amended by striking out "Sep- 42 USC 1487. tember 30, 1978" and inserting in lieu thereof "October 31, 1978". (d) Section 523(f) of such Act is amended by striking out "Octo- 42 USC 1490c. ber 1, 1978" where it appears in paragraph (f) and inserting in lieu thereof "November 1, 1978"; and by striking out "September 30, 1978" where it appears in such paragraph (f) and inserting in lieu thereof "October 31, 1978". Approved September 30, 1978.

LEGISLATIVE HISTORY: CONGRESSIONAL RECORD, Vol. 124 (1978): Sept. 29, considered and passed Senate and House.

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Page:United States Statutes at Large Volume 92 Part 1.djvu/936

 92 STAT. 882

PUBLIC LAW 95-407—SEPT. 30, 1978

Public Law 95-407 95th Congress r !/ i Joint Resolution Sept. 30, 1978 [H.J. Res. 1140]

Export-Import Bank Act of 19^^',

TO amend section 8 of the Export-Import Bank Act of 1945.

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That section 8 of the ExportImport Bank Act of 1945 is amended by striking out "September 30" and inserting in lieu thereof "December 31".

amendment.

12 USC 635f.

Approved September 30, 1978.

LEGISLATIVE HISTORY: CONGRESSIONAL RECORD, Vol. 124 (1978): Sept. 28, considered and passed House. Sept. 29, considered and passed Senate.

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Page:United States Statutes at Large Volume 92 Part 1.djvu/937

 PUBLIC LAW 95-408—OCT. 2, 1978

92 STAT. 883

Public Law 95-408 95th Congress An Act To amend title 28 of the United States Code to make certain changes in the —Oct. 2, 197o— places of holding Federal district courts, in the divisions within judicial dis[S. 3375] tricts, and in judicial district dividing lines.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, Federal District SHORT TITLE

Court ^ / f " ^ f * * ° " ^"* 01 i y < o.

1. This Act may be cited as the "Federal District Court 28 USC 81 note. Organization Act of 1978'\ SECTION

PLACES OF HOLDING COURT

SEC. 2. (a) The last sentence of section 97(a) of title 28, United States Code, is amended to read as follows: "Court for the Eastern District shall be held at Ashland, Catlettsburg, Covington, Frankfort, Jackson, Lexington, London, Pikeville, and Eichmond.". (b) The last sentence of section 104(a)(1) of title 28, United States Code, is amended to read as follows: "Court for the eastern division shall be held at Aberdeen, Ackerman, and Corinth.". DIVISIONS W I T H I N JUDICIAL DISTRICTS

SEC. 3. (a) Section 98(c) of title 28, United States Code, is amended to read as follows: "Western District "(c) The Western District comprises the parishes of Acadia, Allen, Avoyelles, Beauregard, Bienville, Bossier, Caddo, Calcasieu, Caldwell, Cameron, Catahoula, Claiborne, Concordia, Jefferson Davis, De Soto, East Carroll, Evangeline, Franklin, Grant, Iberia, Jackson, Lafayette, La Salle, Lincoln, Madison, Morehouse, Natchitoches, Ouachita, Rapides, Red River, Richland, Sabine, Saint Landry, Saint Martin, Saint Mary, Tensas, Union, Vermilion, Vernon, Webster, West Carroll, and Winn. "Court for the Western District shall be held at Alexandria, Lafayette, Lake Charles, Monroe, Opelousas, and Shreveport.". (b) Section 114 of title 28, United States Code, is amended— (1) in paragraph (2), by striking out "Sheridan, Steele, Stutsman, and Wells" and inserting in lieu thereof "Steele, and Stutsman"; (2) in paragraph (3), by striking out "Bottineau,", "McHenry,", and "Pierce,"; and (3) by amending paragraph (4) to read as follows: " (4) The Northwestern Division comprises the counties of Bottineau, Barke, Divide, McHenry, McKenzie, Mountrail, Pierce, Renville, Sheridan, Ward, Wells, and Williams.".

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Page:United States Statutes at Large Volume 92 Part 1.djvu/938

 92 STAT. 884

PUBLIC LAW 95-408—OCT. 2, 1978 JUDICIAL DISTRICT DIVIDING L I N E S

V r

' •;

SEC. 4. (a) Section 89 of title 28, United States Code, is amended— (1) in the first paragraph of subsection (a), by inserting "Madison," immediately after "Liberty,"; and (2) in the first paragraph of subsection (b), by striking out "Madison,". (b)(1) Section 93 of title 28, United States Code, is amended to read as follows: "§93. Illinois "Illinois is divided into three judicial districts to be known as the Northern, Central, and Southern Districts of Illinois. "Northern District " (a) The Northern District comprises two divisions. "(1) The Eastern Division comprises the counties of Cook, De Kalb, Du Page, Grundy, Kane, Kankakee, Kendall, Lake, La Salle, McHenry, and Will. "Court for the Eastern Division shall be held at Chicago. "(2) The Western Division comprises the counties of Boone, Carroll, Jo Daviess, Lee, Ogle, Stephenson, Whiteside, and Winnebago. "Court for the Western Division shall be held at Freeport and Rockford. "Central District " (b) The Central District comprises the counties of Adams, Brown, Bureau, Cass, Champaign, Christian, Coles, De Witt, Douglas, Edgar, Ford, Fulton, Greene, Hancock, Henderson, Henry, Iroquois, Knox, Livingston, Logan, McDonough, McLean, Macoupin, Macon, Marshall, Mason, Menard, Mercer, Montgomery, Morgan, Moultrie, Peoria, Piatt, Pike, Putnam, Rock Island, Sangamon, Schuyler, Scott, Shelby, Stark, Tazewell, Vermilion, Warren, and Woodford. "Court for the Central District shall be held at Danville, Peoria, Quincy, Rock Island, and Springfield. "Southern District

,

"(c) The Southern District comprises the counties of Alexander, Bond, Calhoun, Clark, Clay, Clinton, Crawford, Cumberland, Edwards, Effingham, Fayette, Franklin, Gallatin, Hamilton, Hardin, Jackson, Jasper, Jefferson, Jersey, Johnson, Lawrence, Madison, Marion, Massac, Monroe, Perry, Pope, Pulaski, Randolph, Richland, St. Clair, Saline, Union, Wabash, Washington, Wayne, White, and Williamson. "Court for the Southern District shall be held at Alton, Benton, Cairo, and East Saint Louis.".

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Page:United States Statutes at Large Volume 92 Part 1.djvu/939

 PUBLIC LAW 95-408—OCT. 2, 1978

92 STAT. 885

(2) Section 133 of title 28, United States Code, is amended by striking out the item relating to Illinois and inserting in lieu thereof the following: "Illinois: "Northeru "Central "Southern

13 2^ 2".

(c) Section 112 of title 28, United States Code, is amended— (1) in the first paragraph of subsection (a), by inserting "Columbia," immediately after "Clinton,", by inserting "Greene," immediately after "Fulton,", and by inserting "Ulster," immediately after "Tompkins,"; and (2) in the first paragraph of subsection (b), by striking out "Columbia,", "Greene,", and "Ulster,". EFFECTIVE DATE

SEC. 5. (a) The amendments made by this Act shall take effect 180 28 USC 89 note, days after the date of enactment of this Act. (b) Nothing in this Act shall affect the composition or preclude the ,, service of any grand or petit juror summoned, empaneled, or actually •?; serving in any judicial district on the effective date of this Act. Approved October 2, 1978.

LEGISLATIVE HISTORY: HOUSE REPORT No. 95-1554 accompanying H.R. 13331 (Coram, on the Judiciary). SENATE REPORT No. 95-1121 (Coram, on the Judiciary). CONGRESSIONAL RECORD, Vol. 124 (1978): Aug. 21, considered and passed Senate. Sept. 12, H.R. 13331 considered and passed House; passage vacated and S. 3375, amended, passed in lieu. Sept. 19, Senate concurred in House amendment.

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Page:United States Statutes at Large Volume 92 Part 1.djvu/940

 92 STAT. 886

PUBLIC LAW 95-409—OCT. 2, 1978

Public Law 95-409 95th Congress An Act Oct. 2. 1978 [S. 3272]

To amend the Packers and Stockyards Act, 1921, and for other purposes.

Be it eThocted by the Senate and House of Representatives of the Packers and United States of America in Congress assembled, That the Packers Stockyards Act, and Stockyards Act, 1921, is amended as follows: 1921, (a) Section 305 of the Act (7 U.S.C. 206) is amended by inserting amendment. immediately before the period at the end thereof the following: 7 USC 181. ": Provided, That rates and charges based upon percentages of the gross sales prices of livestock shall not be prohibited merely because they are based upon such percentages rather than on a per head basis"; and (b) Section 310 of the Act (7 U.S.C. 211) is amended by— (1) in the introductory paragraph, striking out "unjust, unreasonable, or discriminatory" and inserting in lieu thereof "violative of section 304,305, or 307"; 7 USC 205, 206, 208. (2) in subsection (a) thereof— (A) striking out "just and reasonable" and inserting after the word "May" the following: "in accordance with the standard set forth in section 305"; (B) striking out "as both the maximum and minimum" and inserting in lieu thereof "as the maximum or minimum or both"; (C) inserting immediately before the semicolon at the end thereof ": Provided, That the Secretary shall prescribe the rate or charge, or rates or charges, on a percentage or per head basis at the election of the stockyard owner or market agency, or on any other basis elected by the stockyard owner or market agency unless the Secretary finds such other basis to be violative of section 305"; and (3) in subsection (b), striking out "more or less than the rate or cnarge" and inserting in lieu thereof "other than the rate or charge or rates or charges".

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Page:United States Statutes at Large Volume 92 Part 1.djvu/941

 PUBLIC LAW 95-409—OCT. 2, 1978 SEC. 2. The Secretary of Agriculture shall appoint an interagency task force within the Department of Agriculture for the purpose of analyzing and recommending methods by which any livestock sellers, or their agents, may furnish to livestock marketing agencies, dealers, or packers, who purchase livestock or provide marketing services, information concerning the existence of any lien or security interest in or against such livestock. The Secretary shall submit a report of the findings and conclusions of such task force, including legislative recommendations, to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives no later than February 1, 1979. Approved October 2, 1978.

LEGISLATIVE HISTORY: HOUSE REPORT No. 95-1337 accompanying H.R. 9482 (Comm. on Agriculture). SENATE REPORT No. 95-1053 (Comm. on Agriculture, Nutrition, and Forestry). CONGRESSIONAL RECORD, Vol. 124 (1978): Aug. 4, considered and passed Senate. Sept. 19, H.R. 9482 considered and passed House; passage vacated and S. 3272 passed in lieu.

92 STAT. 887 Interagency task force, 7 USC 221 note,

Report to congressional committees,

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Page:United States Statutes at Large Volume 92 Part 1.djvu/942

 92 STAT. 888

PUBLIC LAW 95-410—OCT. 3, 1978

Public Law 95-410 95th Congress An Act Oct. 3, 1978 [H.R. 8149] Customs Procedural Reform and Simplification Act of 1978. 19 USC 1654 note.

19 USC 1505.

19 USC 1490, 1498, 1552, 1553, 1336. Documentation.

Regulations.

To provide customs procedural reform, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Customs Procedural Reform and Simplification Act of 1978".

TITLE I—CUSTOMS PROCEDURAL REFORM SEC. 101. Section 315(a) of the Tariff Act of 1930 (19 U.S.C. 1315 (a)) is amended— (1) by striking out "and" at the end of paragraph (1); (2) by striking out the period at the end of paragraph (2) and inserting in lieu thereof "; and"; and (3) by adding at the end thereof the following new paragraph: "(3) any article for which duties may, under section 505 of this Act, be paid at a time later than the time of making entry shall be subject to the rate or rates in effect at the time of entry.". SEC. 102. (a) Section 484 of the Tariff Act of 1930 (19 U.S.C. 1484) is amended—• (1) by amending subsection (a) to read as follows: "(a) REQUIREMENT AND TIME.— (1) Except as provided in sections 490, 498, 552, 553, and 336 (j) of this Act and in subsections (h) and (i) of this section, the consignee of imported merchandise, either in person or by an agent authorized by the consignee in writing— "(A) shall make entry therefor by filing with the appropriate customs officer such documentation as is necessary to enable such officer to determine whether the merchandise may be released from customs custody; and "(B) shall file (at the time required under paragraph (2)(B) of this subsection) with the appropriate customs officer such other documentation as is necessary to enable such officer to assess properly the duties on the merchandise, collect accurate statistics with respect to the merchandise, and determine whether any other applicable requirement of law (other than a requirement relating to release from customs custody) is met. "(2)(A) The documentation required under paragraph (1) of this subsection with respect to any imported merchandise shall be filed at such place within the customs-collection district where the merchandise will be released from customs custody as the Secretary shall by regulation prescribe. "(B) The documentation required under paragraph (1)(B) of this subsection with respect to any imported merchandise shall be filed with the appropriate customs officer when entry of the merchandise is made or at such time within the ten-day period (exclusive of Saturdays, Sundays, and holidays) immediately following the date of entry as the Secretary shall by regulation prescribe. "(C) The Secretary, in prescribing regulations to carry out this subsection, shall establish procedures which insure the accuracy and timeliness of import statistics, particularly statistics relevant to the classification and valuation of imports. Corrections of errors in such NOTE: In the twelveth line of Sec. 102, which begins with "(B) shall. been added after the word "shall".

", the word "file" has

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Page:United States Statutes at Large Volume 92 Part 1.djvu/943

 PUBLIC LAW 95-410—OCT. 3, 1978 statistical data discovered after the release of merchandise shall be transmitted immediately to the Director of the Bureau of the Census, who shall make corrections in the statistics maintained by the Bureau. The Secretary shall also provide, to the maximum extent practicable, for the protection of the revenue, the facilitation of the commerce of the United States, and the equal treatment of all consignees of imported merchandise."; (2) by striking out "subdivision" in subsection (c)(3) and inserting in lieu thereof "subsection"; and (3) by striking out the second sentence in subsection (j). (b) The amendments made by this section shall take effect 60 days after the date of enactment of this Act. SEC. 103. Section 505(a) of the Tariff Act of 1930 (19 U.S.C. 1505 (a)) is amended to read as follows: "(a) DEPOSIT OF ESTIMATED DUTIES.—Unless merchandise is entered for warehouse or transportation, or under bond, the consignee shall deposit with the appropriate customs officer at the time of making entry, or at such later time as the Secretary may prescribe by regulation (but not to exceed thirty days after the date of entry), the amount of duties estimated by such customs officer to be payable thereon.". SEC. 104. The Tariff Act of 1930 is amended by inserting after section 507 the following new section: "SEC. 508. RECORDKEEPING.

92 STAT. 889

Effective date, 1^ USC 1484 °°t«Regulations,

19 USC 1508.

"(a) REQUIREMENTS.—Any owner, importer, consignee, or agent thereof who imports, or who knowingly causes to be imported, any merchandise into the customs territory of the United States shall make, keep, and render for examination and inspection such records (including statements, declarations, and other documents) which— "(1) pertain to any such importation, or to the information contained in the documents required by this Act in connection , with the entry of merchandise; and "(2) are normally kept in the ordinary course of business. "(b) PERIOD OF TIME.—The records required by subsection (a) of this section shall be kept for such periods of time, not to exceed 5 years from the date of entry, as the Secretary shall prescribe. "(c) LIMITATION.—For the purposes of this section and section 509, Infra. a person ordering merchandise from an importer in a domestic transaction does not knowingly cause merchandise to be imported unless— "(1) the terms and conditions of the importation are controlled by the person placing the order; or "(2) technical data, molds, equipment, other production assistance, material, components, or parts are furnished by the person placing the order with knowledge that they will be used in the manufacture or production of the imported merchandise.". SEC. 105. Section 509 of the Tariff Act of 1930 (19 U.S.C. 1509) is amended to read as follows: "SEC. 509. EXAMINATION OF BOOKS AND WITNESSES.

"(a) AUTHORITY.—In any investigation or inquiry conducted for the purpose of ascertaining the correctness of any entry, for determining the liability of any person for duty and taxes due or duties and taxes which may be due the United States, for determining liability for fines and penalties, or for insuring compliance with the laws of the United States administered by the United States Customs Service, the Secretary (but no delegate of the Secretary below the rank of district director or special agent in charge) may—

,

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Page:United States Statutes at Large Volume 92 Part 1.djvu/944

 PUBLIC LAW 95-410—OCT. 3, 1978

92 STAT. 890 Notice.

Notice.

Ante, p. 889.

Definitions.

Notice.

"(1) examine, or cause to be examined, upon reasonable notice, any record, statement, declaration or other document, described in the notice with reasonable specificity, which may be relevant to such investigation or inquiry; " (2) summon, upon reasonable notice— "(A) the person who imported, or knowingly caused to be imported, merchandise into the customs territory of the i United States, "(B) any officer, employee, or agent of such person, "(C) any person having possession, custody, or care of records relating to such importation, or "(D) any other person he may deem proper, to appear before the appropriate customs officer at the time and place within the customs territory of the United States specified s in the summons (except that no witness may be required to appear at any place more than one hundred miles distant from the place where he was served with the summons), to produce records, required to be kept under section 508 of this Act, and to give such testimony, under oath, as may be relevant to such investigtion or inquiry; and "(3) take, or cause to be taken, such testimony of the person concerned, under oath, as may be relevant to such investigation or inquiry. "(b) SERVICE OF SUMMONS.—^A summons issued pursuant to this section may be served by any person designated in the summons to serve it. Service upon a natural person may be made by personal delivery of the summons to him. Service may be made upon a domestic or foreign corporation or upon a partnership or other unincorporated association which is subject to suit under a common name, by delivering the summons to an officer, or managing or general agent, or to any other agent authorized by appointment or by law to receive service of process. The certificate of service signed by the person serving the summons is prima facie evidence of the facts it states on the hearing of an application for the enforcement of the summons. When the summons requires the production of records, such records shall be described in the summons with reasonable specificity. "(c)

SPECIAL PROCEDURES FOR THIRD-PARTY SUMMONSES.—(1)

For

purposes of this subsection— "(A) The term 'records' includes statements, declarations, or documents required to be kept under section 508 of this Act. "(B) The term 'summons' means any summons issued under subsection (a) of this section which requires the production of ' records or the giving of testimony relating to records. Such term does not mean any summons issued to aid in the collection of the liability of any person against whom an assessment has been made or judgment rendered. ''(C) The term 'third-party recordkeeper' means— " (i) any customhouse broker; "(ii) any attorney; and "(iii) any accountant. "(A) any summons is served on any person who is a thirdparty recordkeeper; and "(B) the summons requires the production of, or the giving of testimony relating to, any portion of records made -or kept of the import transactions of any person (other than the person sum-
 * . "(2) If—

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Page:United States Statutes at Large Volume 92 Part 1.djvu/945

 PUBLIC LAW 95-410—OCT. 3, 1978

92 STAT. 891

moned) who is identified in the description of the records contained in such summons; then notice of such summons shall be given to any persons so identified within a reasonable time before the day fixed in the summons as the day upon which such records are to be examined or testimony given. Such notice shall be accompanied by a copy of the summons which has been served and shall contain directions for staying compliance with the summons under paragraph (5)(B) of this subsection. " (3) Any notice required under paragraph (2) of this subsection shall be sufficient if such notice is served in the manner provided in subsection (b) of this section upon the person entitled to notice, or is mailed by certified or registered mail to the last known address of such person. " (4) Paragraph (2) of this subsection shall not apply to any summons— " (A) served on the person with respect to whose liability for duties or taxes the sunnnons is issued, or any officer or employee of such person; or " (B) to determine whether or not records of the import transactions of an identified person have been made or kept. " (5) Notwithstanding any other law or rule of law, any person who is entitled to notice of a summons under paragraph (2) of this subsection shall have the right— " (A) to intervene in any proceeding with respect to the enforcement of such summons under section 510 of this Act; and Jnfra. " (B) to stay compliance with the summons if, not later than the day before the day fixed in the summons as the day upon which the records are to be examined or testimony given— " (i) notice in writing is given to the person summoned not to comply with the summons; and " ( i i) a copy of such notice not to comply with the summons is mailed by registered or certified mail to such person and to such office as the Secretary may direct in the notice referred to in paragraph (2) of this subsection. " (6) No examination of any records required to be produced under a summons as to which notice is required under paragraph (2) of this subsection may be made— " (A) before the expiration of the period allowed for the notice not to comply under paragraph (5)(B) of this subsection, or " (B) if the requirements of such paragraph (5)(B) have been met, except in accordance with an order issued by a court of competent jurisdiction authorizing examination of such records or with the consent of the person staying compliance. " (7) The provisions of paragraph s (2) and (5) of this subsection shall not apply with respect to any summons if, upon petition by the Secretary, the court determines, on the basis of the facts and circumstances alleged, that there is reasonable cause to believe the giving of notice may lead to attempts to conceal, destroy, or alter records relevant to the examination, to prevent the communication of information from other persons through intimidation, bribery, or collusion, or to flee to avoid prosecution, testifying, or production of records.". SEC. 106. Section 510 of the Tariff Act of 1930 (19 U.S.C. 1510) is amended to read as follows: "SEC. 510. JUDICIAL ENFORCEMENT. " (a) ORDER OF COURT.—If any person summoned under section 509 of this Act does not comply with the summons, the district court of Ante, p. 889.

39-194 O—80—pt. 1

60; QL3

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Page:United States Statutes at Large Volume 92 Part 1.djvu/946

 92 STAT. 892

PUBLIC LAW 95-410—OCT. 3, 1978 the United States for any district in which such person is found or resides or is doing business, upon application and after notice to any such person and hearing, shall have jurisdiction to issue an order requiring such person to comply with the summons. F a i l u r e to obey such order of the court may be punished by such court as a contempt thereof. " (b) SANCTIONS.— (1) For so long as any person, after being adjudged guilty of contempt for neglecting or refusing to obey a lawful summons issued under section 509 of this Act and for refusing to obey the order of the court, remains in contempt, the Secretary may— " (A) prohibit that person from i m p o r t i n g merchandise into the customs territory of the United States directly or indirectly or for his account, and " (B) instruct the appropriate customs officers to withhold delivery of merchandise imported directly or indirectly by that person or for his account. " (2) I f any person remains in contempt for more than one year after the date on which the Secretary issues instructions under paragraph (1)(B) with respect to that person, the appropriate customs officers shall cause all merchandise held in customs custody pursuant to such instructions to be sold a t public auction or otherwise disposed of under the customs laws. " (3) The sanctions which may be imposed under paragraph s (1) and (2) are in addition to any punishment which may be imposed by the court for contempt.". SEC. 107. Section 511 of the Tariff Act of 1930 (19 U.S.C. 1511) is

^

Ante, p. 889.

Repeal.

SEC. 108. (a) Section 557 of the Tariff Act of 1930 (19 U.S.C. 1557) is amended by a d d i n g at the end thereof the following new subsection: "(d)

WITHDRAWAL BEFORE P A Y M E N T. — M e r c h and i s e may be with-

drawn for consumption without the payment of the duty thereon if the consignee or transferee is permitted to p a y duty at a later time pursuant to regulations prescribed by the Secretary under section 505 of this Act.". (b)(1) Sections 557 and 559 of the Tariff Act of 1930 (19 U.S.C. 1557 and 1559) are amended by striking out "three years" each place it appears and inserting in lieu thereof "5 years" in each such place. (2) For purposes of applying the amendments made by paragraph (1) to merchandise remaining in a bonded warehouse on the date of enactment of this Act, any period of time the merchandise was in the bonded warehouse before that date shall be disregarded. SEC. 109. Section 584 of the Tariff Act of 1930 (19 U.S.C. 1584) is amended— (1) by striking out the first word of each paragraph and inserting in lieu thereof—

19 USC 1505.

19 USC 1557 note.

(A) " (a) GENERAL RULE. — (1) Any " in the first paragraph,

,

(B) " (2) If" in the second paragraph, and (C) " (3) If" in the last paragraph; (2) by inserting "lesser of $10,000 or the domestic" immediately after "penalty equal to the " in the first sentence of the first paragraph; (3) by inserting "or any person directly or indirectly responsible for any discrepancy between the merchandise and said manifest" immediately after "or the owner of such vessel or vehicle" each place it appears in the first sentence of the first paragraph;

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Page:United States Statutes at Large Volume 92 Part 1.djvu/947

 PUBLIC LAW 95-410—OCT. 3, 1978

92 STAT. 8 9 3

(4) by a d d i n g at the end of the first paragraph the following new sentence: " For purposes of this subsection, the term 'clerical "Clerical error,' error' means a nonnegligent, inadvertent, or typographical mistake in the preparation, assembly, or submission of the manifest."; (5) by inserting "or any person directly or indirectly responsible for heroin, morphine, cocaine, isonipecaine, or opiate being in such merchandise" immediately after "or the owner of such vessel or vehicle" in the first sentence of the second paragraph; (6) by inserting "or any person directly or indirectly responsible for smoking opium, opium prepared for smoking, or marihuana being in such merchandise" immediately after "or the owner of such vessel or vehicle" in the second sentence of the second paragraph; (7) by inserting "or any person directly or indirectly responsible for crude opium being in such merchandise" immediately after "or the owner of such vessel or vehicle" in the third sentence of the second paragraph; and (8) by a d d i n g at the end thereof the following new subsection: " (b) PROCEDURES.— (1) If the appropriate customs officer has rea- Notice. sonable cause to believe that there has been a violation of subsection (a)(1) and determines that further proceedings are warranted, he shall issue to the person concerned a written notice of his intention to issue a claim for a monetary penalty. Such notice shall— " (A) describe the merchandise; " (B) set forth the details of the error in the manifest; " (C) specify all laws and regulations allegedly violated; " (D) disclose all the material facts which establish the alleged violation; " (E) state the estimated loss of lawful duties, if any, and, taking into account all of the circumstances, the amount of the proposed monetary p e n a l t y; and " (F) inform such person that he will have a reasonable opport u n i t y to make representations, both oral and written, as to why such penalty claim should not be issued. No notice is required under this subsection for any violation of subsection (a)(1) for which the proposed penalty is $500 or less. " (2) After considering representations, if any, made by the person concerned pursuant to the notice issued under paragraph (1), the appropriate customs officer shall determine whether any violation of subsection (a)(1), as alleged in the notice, has occurred. I f such officer determines that there was no violation, he shall promptly issue a written statement of the determination to the person to whom the notice was sent. I f such officer determines that there was a violation, he shall issue a written penalty claim to such person. The written penalty claim shall specify all changes in the information provided under subparagraph s (A) through (E) of paragraph (1). ". SEC. 110. (a) Section 592 of the Tariff Act of 1930 (19 U.S.C. 1592) is amended to read as follows: "SEC. 592. PENALTIES FOR FRAUD, GROSS NEGLIGENCE, AND NEGLIGENCE. "(a)

PROHIBITIOJST

" (1) GENERAL RULE.—Without regard to whether the United States is or may be deprived of all or a portion of any lawful duty thereby, no person, by fraud, gross negligence, or negligence—

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Page:United States Statutes at Large Volume 92 Part 1.djvu/948

 92 STAT. 894

PUBLIC LAW 95-410—OCT. 3, 1978 "(A) may enter, introduce, or attempt to enter or introduce any merchandise into the commerce of the United States by means of— "(i) any document, written or oral statement, or act which is material and false, or "(ii) any omission which is material, or "(B) may aid or abet any other person to violate subparagraph (A). "(2) EXCEPTION.—Clerical errors or mistakes of fact are not violations of paragraph (1) unless they are part of a pattern of negligent conduct. " (b) PROCEDURES.— "(1) PRE-PEXALTT NOTICE.—

-

19 USC 1618.

"(A) IN GENERAL.—If the appropriate customs officer has reasonable cause to believe that there has been a violation of subsection (a) and determines that further proceedings are warranted, he shall issue to the person concerned a written notice of his intention to issue a claim for a monetary penalty. Such notice shall— "(i) describe the merchandise; "(ii) set forth the details of the entry or introduction, the attempted entry or introduction, or the aiding or procuring of the entry or introduction; "(iii) specify all laws and regulations allegedly violated; "(iv) disclose all the material facts which establish the alleged violation; "(v) state whether the alleged violation occurred as a result of fraud, gross negligence, or negligence; "(vi) state the estimated loss of lawful duties, if any, and, taking into account all circumstances, the amount of the proposed monetary penalty; and "(vii) inform such person that he shall have a reasonable opportunity to make representations, both oral and written, as to why a claim for a monetary penalty should not be issued in the amount stated. "(B) EXCEPTIONS.—The preceding subparagraph shall not apply if-"(i) the importation with respect to which the violation of subsection (a) occurs is noncommercial in nature, or "(ii) the amount of the penalty in the penalty claim issued under paragraph (2) is $1,000 or less. "(2) PENALTY CLAIM.—After considering representations, if any, made by the person concerned pursuant to the notice issued under paragraph (1), the appropriate customs officer shall determine whether any violation of subsection (a), as alleged in the notice, has occurred. If such officer determines that there was no violation, he shall promptly issue a written statement of the determination to the person to whom the notice was sent. If such officer determines that there was a violation, he shall issue a written penalty claim to such person. The written penalty claim shall specify all changes in the information provided under clauses (i) through (vi) of paragraph (1)(A). Such person shall have a reasonable opportunity under section 618 of this Act to make representations, both oral and written, seeking remission or miti-

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Page:United States Statutes at Large Volume 92 Part 1.djvu/949

 PUBLIC LAW 95-410—OCT. 3, 1978 gation of the monetary penalty. A t the conclusion of any proceeding under such section 618, the appropriate customs officer shall provide to the person concerned a written statement which sets forth the final determination and the findings of fact and conclusions of law on which such determination is based. "(c)

92 STAT. 895

19 USC 1618.

MAXIMUM PENALTIES.—

" (1) FRAUD.—A fraudulent violation of subsection (a) is punishable by a civil penalty in an amount not to exceed the domestic value of the merchandise. " (2) GROSS NEGLIGENCE.—A grossly negligent violation of subsection (a) is punishable by a civil penalty in an amount not to exceed— " (A) the lesser of— " (i) the domestic value of the merchandise, or " ( i i) four times the lawful duties of which the United States is or may be deprived, or " (B) if the violation did not affect the assessment of duties, 40 percent of the dutiable value of the merchandise. " (3) NEGLIGENCE.—A negligent violation of subsection (a) is punishable by a civil penalty in an amount not to exceed— " (A) the lesser of— " (i) the domestic value of the merchandise, or " ( i i) two times the lawful duties of which the United . States is or may be deprived, or " (B) if the violation did not affect the assessment of duties, 20 percent of the dutiable value of the merchandise. " (4) PRIOR DISCLOSURE.—If the person concerned discloses the circumstances of a violation of subsection (a) before, or without knowledge of, the commencement of a formal investigation of such violation, with respect to such violation, merchandise shall not be seized and any monetary penalty to be assessed under subsection (c) shall not exceed— ,, " (A) if the violation resulted from fraud— " (i) an amount equal to 100 percent of the lawful duties of which the United States is or may be deprived, so long as such person tenders the unpaid amount of the lawful duties at the time of disclosure or within thirty days, or such longer period as the appropriate customs officer may provide, after notice by the appropriate customs officer of his calculation of such unpaid amount, or " ( i i) if such violation did not affect the assessment of duties, 10 percent of the dutiable value; or " (B) if such violation resulted from negligence or gross negligence, the interest (computed from the date of liquidation at the prevailing rate of interest applied under section 6621 of the I n t e r n a l Revenue Code of 1954) on the amount 26 USC 6621. of lawful duties of which the United States is or may be deprived so long as such person tenders the unpaid amount of the lawful duties at the time of disclosure or within 30 days, or such longer period as the appropriate customs officer may provide, after notice by the appropriate customs officer of his calculation of such unpaid amount. The person asserting lack of knowledge of the commencement of a formal investigation has the burden of proof in establishing such lack of knowledge.

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Page:United States Statutes at Large Volume 92 Part 1.djvu/950

 92 STAT. 8 9 6

.

r

'

PUBLIC LAW 95-410—OCT. 3, 1978 " (5) SEIZURE.—If the Secretary has reasonable cause to believe that a person has violated the provisions of subsection (a) and that such person is insolvent or beyond the jurisdiction of the United States or that seizure is otherwise essential to protect the revenue of the United States or to prevent the introduction of prohibited or restricted merchandise into the customs territory of the United States, then such merchandise may be seized and, upon assessment of a monetary penalty, forfeited unless the monet a r y penalty is paid within the time specified by law. W i t h i n a reasonable time after any such seizure is made, the Secretary shall issue to the person concerned a written statement containing the reasons for the seizure. After seizure of merchandise under this subsection, the Secretary may, in the case of restricted merchandise, and shall, in the case of any other merchandise (other than prohibited merchandise), return such merchandise upon the deposit of security not to exceed the maximum monetary penalty which may be assessed under subsection (c). "(d)

19 USC 1514.

514 of this Act, if the United States has been deprived of lawful duties as a result of a violation of subsection (a), the appropriate customs officer shall require that such lawful duties be restored, whether or not a monetary penalty is assessed. "(e)

19 USC 1604.

"

0 '

Ante, p. 893.

DEPRIVATION o r L A W F U L D U T I E S. — Notwithstanding section

DISTRICT COURT PROCEEDINGS.—Notwithstanding any other

provision of law, in any proceeding in a United States district court commenced by the United States pursuant to section 604 of this Act for the recovery of any monetary penalty claimed under this section— " (1) all issues, including the amount of the penalty, shall be tried de novo; " (2) if the monetary penalty is based on fraud, the United States shall have the burden of proof to establish the alleged violation by clear and convincing evidence; " (3) if the monetary penalty is based on gross negligence, the United States shall have the burden of proof to establish all the elements of the alleged violation; and " (4) if the monetary penalty is based on negligence, the United States shall have the burden of proof to establish the act or omission constituting the violation, and the alleged violator shall have the burden of proof that the act or omission did not occur as a result of negligence.". (b) Section 603 of the Tariff Act of 1930 (19 U.S.C. 1603) is amended by inserting " p r o m p t l y " immediately after "to report". (c) Section 613 of the Tariff Act of 1930 (19 U.S.C. 1613) is amended— (1) by striking out " Any " in the first sentence and inserting in lieu thereof " (a) Except as provided in subsection (b) of this section, any "; and (2) by a d d i n g at the end thereof the following new subsection: " (b) I f merchandise is forfeited under section 592 of this Act, any proceeds from the sale thereof in excess of the monetary penalty finally assessed thereunder and the expenses and costs described in subsection (a)(1) and (2) of this section incurred in such sale shall be returned to the person against whom the penalty was assessed." (d) Section 615 of the Tariff Act of 1930 (19 U.S.C. 1615) is amended by inserting " ( other than those arising under section 592 of this Act) " immediately after " I n all suits or actions".

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Page:United States Statutes at Large Volume 92 Part 1.djvu/951

 PUBLIC LAW 95-410—OCT. 3, 1978 (e) Section 621 of the Tariff Act of 1930 (19 U.S.C. 1621) is amended by inserting the following after Provided, That": "in the case of an alleged violation of section 592 of this Act arising out of gross negligence or negligence, such suit or action shall not be instituted more than five years after the date the alleged violation was committed: Provided further, That". (f)(1)(A) Except as provided in subparagraphs (B) and (C), subsections (a), (b), and (c) (other than new subsection (e) of section 592 of the Tariff Act of 1930 as added by subsection (a)) shall be effective with respect to proceedings commenced after the 89th day after the date of enactment of this Act. (B) Except as provided in subparagraph (C), section 592 of the Tariff Act of 1930 (as such section existed on the day before the date of enactment of this Act) shall apply to any alleged intentional violation thereof involving television receivers that are the product of Japan and that were or are the subject of antidumping proceedings if the alleged intentional violation— (i) occurred before the date of enactment of this Act, and (ii) was the subject of an investigation by the Customs Service which was begun before the date of enactment of this Act. (C) Except as provided in the next sentence, subsection (e) of section 592 of the Tariff Act of 1930 (as added by subsection (a)) shall be effective on the date of enactment of this Act. Notwithstanding any provision of law, in any proceeding in a United States district court commenced by the United States pursuant to section 604 of the Tariff Act of 1930 for the recovery of any monetary penalty claimed under section 592 of such Act for an alleged intentional violation described in subparagraph (B) — (i) all issues, including the amount of the penalty, shall be tried de novo; and (ii) the United States shall have the burden of proof to establish such violation by a preponderance of the evidence. (2)(A) The amendment made by subsection (e) shall apply with respect to alleged violations of section 592 of the Tariff Act of 1930 resulting from gross negligence or negligence which are committed on or after the date of the enactment of this Act. (B) In the case of any alleged violation of such section 592 resulting from gross negligence or negligence which was committed before the date of the enactment of this Act and for which no suit or action for recovery was commenced before such date of enactment, no suit or action for recovery with respect to such alleged violation shall be instituted after—• (i) the closing date of the 5-year period beginning on the date on which the alleged violation was committed, or (ii) the closing date of the 2-year period beginning on such date of enactment, whichever date later occurs, except that no such suit or action may be instituted after the date on which such suit or action would have been barred under section 621 of the Tariff Act of 1930 (as in effect on the day before such date of enactment). SEC. 111. (a) Section 607 of the Tariff Act of 1930 (19 U.S.C. 1607) is amended by striking out "$2,500" in the heading of such section and inserting in lieu thereof "$10,000", and by striking out "$2,500" each place that it appears therein and inserting in lieu thereof "$10,000".

92 STAT. 897

Ante, p. 893.

19 USC 1592 note,

19 USC 1604.

19 USC 1621.

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Page:United States Statutes at Large Volume 92 Part 1.djvu/952

 92 STAT. 898

PUBLIC LAW 95-410—OCT. 3, 1978 (b) Section 610 of the Tariff Act of 1930 (19 U.S.C. 1610) is amended by striking out "$2,500" in the heading of such section and inserting in lieu thereof "$10,000", and by striking out "$2,500" in such section and inserting in lieu thereof "$10,000". (c) Section 612 of the Tariff Act of 1930 (19 U.S.C. 1612) is amended by striking out "$2,500" each place it appears therein and inserting in lieu thereof "$10,000". SEC. 112. The Tariff Act of 1930 is amended by inserting immediately after section 624 the following new section:

19 USC 1625.

"SEC. 625. PUBLICATION OF DECISIONS.

"Within 120 days after issuing any precedential decision (including any ruling letter, internal advice memorandum, or protest review decision) under this Act with respect to any customs transaction, the Secretary shall have such decision published in the Customs Bulletin or shall otherwise make such decision available for public inspection.". SEC. 113. Section 641 of the Tariff Act of 1930 (19 U.S.C. 1641) is amended by adding at the end thereof the following new subsection: "(e) TRIENNIAL REPORTS BY CUSTOMHOUSE BROKERS.—On February 1, 1979, and on February 1 of each third year thereafter, each person who is licensed as a customhouse broker under this section shall file with the Secretary a report as to— "(1) whether such person is actively engaged in business as a customhouse broker; and " (2) the name under, and the address at, which such business is being transacted.". TITLE II—CUSTOMS

Regulations.

SIMPLIFICATION

SEC. 201. Section 11 of the Act of March 1, 1879 (19 U.S.C. 467) is amended to read as follows: "SEC. 11. The Secretary of the Treasury may by regulation require such marks, brands, and stamps or devices to be placed on any bulk container (including a pipeline) used for holding, storing, transferring or conveying imported distilled spirits, wines, or malt liquors as he deems necessary and proper in the administration of the Federal laws applicable to such imported distilled spirits, wines, or malt liquors and may specify those marks, brands, and stamps or devices which the importer or owner shall place or have placed on such containers. Any such container of imported distilled spirits, wines, or malt liquors withdrawn from customs custody purporting to contain imported distilled spirits, wines, or malt liquors found without having thereon any mark, brand, stamp, or device the Secretary of the Treasury may require, shall be with its contents, forfeited to the United States of America." SEC. 202. (a) Schedule 8 of the Tariff Schedules of the United States (19 U.S.C. 1202) is amended as follows: (1) Item 812.20 is amended by striking out "3 pounds" and inserting in lieu thereof "2 kilograms", by striking out "1 quart" and inserting in lieu thereof "1 liter", and by striking out "300 cigarettes" and inserting in lieu thereof "200 cigarettes". (2) Item 812.25 is amended by striking out" (including not more than 1 wine gallon of alcoholic beverages and not more than 100 cigars)" and inserting in lieu thereof "(not including alcoholic beverages and cigarettes but including not more than 100 cigars)". (3) Item 812.40 is amended by inserting "(including not more than 4 liters of alcoholic beverages) " after "Not exceeding $200 in value of articles".

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Page:United States Statutes at Large Volume 92 Part 1.djvu/953

 PUBLIC LAW 95-410—OCT. 3, 1978

92 STAT. 899

(4) The prefatory note to item 813.10 is amended by inserting 19 USC 1202 the following before the colon at the end of such note: "(including note. American citizens who are residents of American Samoa, Guam, or the Virgin Islands of the United States)". (5) Subpart A of part 2 is amended by striking out items 813.30 and 813.31 and by inserting in lieu thereof the following new items: other articles, including not more than 100 cigars, acquired abroad as an incident of the journey from which the person Is returning if such person arrives from the Virgin Islands of the United States or from a contiguous country which maintains a free zone or free port, or arrives from any other country after having remained beyond the United States for a period of not less than 48 hours, for his personal or household use, but not imported for the account of any other person nor intended for sale, if declared in accordance with regulations of the Secretary of the Treasiuy and if such person has not claimed an exemption under item 813.30 or 813.31 within 30 days preceding his arrival, and does not claim an exemption under the other item on his arrival: Articles, accompanying a person, not over $300 in aggregate fair retail value in the country of acquisition, including (but only in the case of an individual who has attained the age of 21) not more than 1 quart of alcoholic beverages Free Articles, whether or not accompanying a person, not over $600 in aggregate fair market value in the country of acquisition, including (but only in the case of an individual who has attained the age of 21) not more than 1 wine gallon of alcoholic beverages, not more than 1 quart of which shall have been sicquired elsewhere than in American Samoa, Guam, or the Virgin Islands of the United States, if such person arrives directly or indirectly from such insular possessions, not more than $300 of which shall have been acquired elsewhere than in such insular possessions (but this item does not permit the entry of articles not accompanying a person which were acquired elsewhere than in such insular possessions)

Free

(6) The item description appearing immediately before item 813.30 (as amended by paragraph (5)) is amended by inserting "200 cigarettes and" before "100 cigars". (7) Item 813.30 (as amended by paragraph (5)) is amended by striking out "1 quart" and inserting in lieu thereof "1 liter". (8) Item 813.31 (as amended by paragraph (5)) is amended by striking out "1 wine gallon" and inserting in lieu thereof "4 liters", and by striking out "1 quart" and inserting in lieu thereof "1 liter". (9) Item 814.00 is amended by striking out "3 pounds" and inserting in lieu thereof "2 kilograms" and by striking out "1 quart" and inserting in lieu thereof "1 liter". (10) Item 860.10 is amended by striking out "8 ounces" and inserting in lieu thereof "300 milliliters", by striking out "4 ounces" and inserting in lieu thereof "150 milliliters", and by striking out "2 ounces" and inserting in lieu thereof "100 milliliters". (11) Item 860.20 is amended by striking out "i/^ ounce" each place that it appears and inserting in lieu thereof "3.5 grams". (b)(1) The amendments made by this section with respect to metric conversion apply to merchandise entered on or after January 1, 1980. (2) The amendments made by this section (other than those referred 19 USC 1202 to in paragraph (1)) shall apply with respect to persons arriving in note. the United States on or after the 30th day after the date of the enactment of this Act. For purposes of this subsection, the amendment made by paragraph (3) of subsection (a) shall not be considered an amendment with respect to metric conversion.

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