SEC. 11. TARIFF ADJUSTMENT AND OTHER ADJUSTMENT ASSISTANCE. Any duty-free treatment provided for in this Act shall, for purposes of title III of the Trade Expansion Act of 1962 (76 Stat. 883; 19 U.S.C., secs. 1901 to 1991), be treated as a concession granted under a trade agreement: Provided, That any action taken pursuant to this section shall be consistent with obligations of the United States under trade agreements. [H.J. Res. 688, 89th Cong., 1st sess.] JOINT RESOLUTION To give effect to the Agreement for Facilitating the International Circulation of Visual and Auditory Materials of an Educational, Scientific, and Cultural Character, approved at Beirut in 1948 Whereas the Congress and the President have repeatedly declared it to be a national policy to promote a better understanding of the United States in other countries, and to increase mutual understanding between the people of the United States and the people of other countries; and Whereas the General Conference of the United Nations Educational, Scientific, and Cultural Organization of its third session at Beirut, Lebanon, in 1948, approved and recommended to member states for signature an Agreement for Facilitating the International Circulation of Visual and Auditory Materials of an Educational, Scientific, and Cultural Character, which Agreement has been signed by twenty-one nations, including the United States; and Whereas the Senate has given its advice and consent to the ratification of the Agreement; and Whereas the Congress does hereby determine that mutual understanding between peoples will be augmented by the measures provided for in said Agreement: Now, therefore, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the President of the United States is authorized to designate a Federal agency or agencies which shall be responsible for carrying out the provisions of the Agreement for Facilitating the International Circulation of Visual and Auditory Materials of an Educational, Scientific, and Cultural Character and a related protocol of signature, opened for signature at Lake Successs on July 15, 1949 (hereinafter in this Act referred to as the "Agreement"). It shall be the duty of the Federal agency or agencies so designated to take appropriate measures for the carrying out of the provisions of the Agreement including the issuance of regulations. SEC. 2. Agencies of the Federal Government are authorized to furnish facilities and personnel for the purpose of assisting the agency or agencies designated by the President in carrying out the provisions of the Agreement. SEC. 3. (a) (1) Part 6 of schedule 8 of the Tariff Schedules of the United States (19 U.S.C. 1202) is amended by inserting after the heading to such part 6 the following: "Part 6 headnote: "1. No article shall be exempted from duty under item 870.30 unless a Federal agency or agencies designated by the President determines that such article is visual or auditory material of an educational, scientific, or cultural character within the meaning of the Agreement for Facilitating the International Circulation of Visual and Auditory Materials of an Educational, Scientific, and Cultural Character." (2) Such part 6 is amended by adding at the end thereof the following new item: (b) The amendments made by subsection (a) shall apply with respect to articles entered, or withdrawn from warehouse, for consumption, on or after the date proclaimed by the President pursuant to this subsection, which date shall be within the period of six months which begins with the day after the day on which the United States instrument of acceptance of the Agreement is deposited with the Secretary General of the United Nations. Hon. JOHN W. MCCORMACK, Speaker of the House of Representatives. THE SECRETARY OF STATE, Washington, D.C., May 28, 1965. DEAR MR. SPEAKER: There is enclosed for the consideration of the Congress a draft bill which would implement the obligations which will be assumed by the United States upon ratification of the Agreement on the Importation of Educational, Scientific and Cultural Materials, of November 22, 1950, commonly referred to as the Florence Agreement. The Agreement has as its purpose the improvement of international understanding through the reduction of trade barriers to knowledge. This is to be accomplished by the elimination of tariffs on certain items and the lowering of other obstacles to the circulation of scientific, educational and cultural materials. The Agreement is of benefit to schools and universities, science laboratories and research foundations, galleries, museums, and organizations concerned with the welfare of the blind. The resources of such organizations are limited, not only in the United States, but particularly in many of the newer countries of the world. The bill would, generally, remove the duties applicable to such books as are now dutiable, to to certain paintings and other dutiable educational, artistic, and cultural articles, and to scientific instruments for the use of scientific or educational institutions if no instrument of equivalent scientific value is being manufactured in the United States. The United States participated in the negotiation of this Agreement. It was signed on behalf of the United States on June 24, 1959, and the Senate on February 23, 1960 gave advice and consent to its ratification. Two drafts of implementing legislation were introduced in the 87th Congress, as H.R. 2537 and H.R. 12821. These earlier bills would have provided for the requisite duty-free treatment in terms following closely those of the Agreement itself, without attempting to integrate such treatment into the United States tariff legislation. Since such an approach would be inconsistent with the codifying purpose of the new tariff schedules, which became effective August 31, 1963, the draft legislation has been completely revised to integrate the duty-free treatment formally into such new tariff schedules. While the Department of State and the United States Information Agency have long worked for legislation implementing the Florence Agreement, a new element has been added which makes the time factor particularly important this year. The Seventeenth Congress of the International Publishers Association, which will be attended by hundreds of delegates from all parts of the Free World, will be meeting in Washington, May 30 through June 5, 1965. Some two-thirds of the countries represented in the Association-including all of the major publishing countries-are parties to the Florence Agreement. The Advisory Committee on International Book Programs, set up to advise the United States Government on matters in the publishing field, stated in a resolution dated July 28, 1964: "Failure to enact enabling legislation prior to the Seventeenth Congress of the International Publishers Association will place the book and music publishers of the United States, the hosts for this first congress in our country, in a most embarrassing position and will also reflect unfavorably on the international cultural efforts of the U. S. Government." Official recognition of this influential meeting has already been extended by the Congress in a joint resolution of the 88th Congress (Public Law 88-298), introduced by Senator Fulbright, which concludes: "The President is authorized and requested to grant recognition, in such ways as he may deem proper, to the International Publishers Congress, calling upon officials and agencies of the Government to provide such assistance, facilities and cooperation as the occasion may warrant." Consideration by the Congress of this implementing legislation, necessary for its ratification of the Florence Agreement, would be the most welcome and appropriate contribution by the United States to the success of the publishers' congress. Enactment of the legislation would also be especially appropriate during 1965, since this year has been designated by the United Nations as International Cooperation Year. The Bureau of the Budget advises that enactment of this legislation would be consistent with the Administration's objectives. Sincerely yours, (See p. 3, H.R. 8664 and the draft bill are identical.) DEAN RUSK. Hon. WILBUR D. MILLS, Chairman, Ways and Means Committee, ASSISTANT SECRETARY OF STATE, DEAR MR. CHAIRMAN: Attached is an Analysis of the Florence Agreement Implementing Legislation, which explains the bill to implement the Agreement on the Importation of Educational, Scientific and Cultural Materials that was transmitted to the Speaker of the House of Representatives by Secretary Rusk's letter of May 28, 1965. This Department appreciates very much the promptness with which you introduced this bill on June 1, 1965, as H.R. 8664, which was referred to the Committee on Ways and Means. The analysis is the product of broad interdepartmental consideration of the bill. As you know, the President has on a number of occasions, including a letter of June 1, 1965, to the Speaker, urged prompt Congressional consideration of this legislation. Therefore, our understanding that the Ways and Means Committee intends to hold hearings and act on the bill this year is particularly gratifying. It is anticipated that a discussion of the Florence agreement will take place during the General Conference of the United Nations Educational, Scientific and Cultural Organization this fall, and it will be most advantageous if enactment of this legislation has enabled the United States to deposit its ratification of the agreement prior to this discussion. The Department has been informed by the Bureau of the Budget that it has no objection to the submission of this analysis. Sincerely yours, DOUGLAS MACARTHUR II, Assistant Secretary for Congressional Relations. ANALYSIS OF FLORENCE AGREEMENT IMPLEMENTING LEGISLATION (H.R. 8664) INTRODUCTION The first section would provide a short title, state the purpose of the legislation to be to give effect to the Agreement on the Importation of Educational, Scientific and Cultural Materials (Florence agreement) with a view to contributing to peace through the freer exchange of ideas and knowledge across national boundaries, and specify the form used in the bill for referring to the Tariff Schedules on the United States. The second section provides that the amendments shall become effective on a date to be proclaimed by the President, which date shall be within three months, following the deposit of the instrument of ratification by the United States of the Florence agreement, which period is that within which the agreement provides that it shall be implemented by a ratifying country. Sections 3 through 10 would amend the Tariff Schedules of the United States in order to provide for duty-free treatment in cases in which it is required by the agreement but is not now provided for in the Tariff Schedules of the United States (present rates referred to in this analysis are column 1 rates), subject in some cases to safeguarding qualifications, and would make some other related modifications of the tariff schedules. Section 11 would provide for the application of the relief provisions of title III of the Trade Expansion Act of the dutyfree treatment provided for in this new legislation. There is attached a detailed cross-reference table from the tariff schedules as they would be amended by this bill to the provisions of the Florence agreement which they would implement, containing an indication of the principal substantive changes which the proposed amendments would make in the schedules. There are also attached a summary cross-reference table from the provisions of the agreement to the tariff schedules, and an indication of changes which would be made in existing legislation. BOOKS AND OTHER PRINTED MATERIAL Section 3 relates to books and other printed and manuscript material. It would first generally consolidate the present items for books in foreign languages (270.15), books printed over 20 years before importation (270.21), and Bibles (270.30), all of which are now duty-free, and those for prayer books (270.35), picture books (270.40), and books in the English language not specially provided 64-216-662 for (270.45 and 270.50), all of which are now dutiable at rates ranging from 2 to 72% ad valorem, into one duty-free item 270.25. Toy books (item 737.52) would also be made duty-free (now dutiable at 28% ad valorem). The wording of this last item would be modified to refer specifically to certain types of books now being imported thereunder. Under headnote 2(b) to part 5 of schedule 2 the term books includes pamphlets. Consequently it is understood that catalogs in book or pamphlet form which would not come under any more specific classification would be classified as books not specially provided for. However, the Florence agreement permits exceptions from duty-free treatment for articles which consist exclusively or susbtantially of advertising matter, and under the bill catalogs for the sale of United States products would be dutiable at 3% or 7% ad valorem (items 270.45 and 270.50), the rates at which it is believed such catalogs are now dutiable depending upon whether they are of foreign or domestic authorship. The Florence agreement provides for duty-free treatment of periodicals, subject to certain permissible exceptions based on predominance of advertising material, and for newspapers. Section 3(b) would consolidate existing provisions applicable to periodicals into a single new duty-free item 270.63. Current periodicals devoted to literature of the day and those distributed by literary and scientific institutions are now duty-free under items 270.65 and 270.05, whereas current lithographic or hand-decorated fashion magazines are now dutiable at 4 cents per pound under item 270.60. Other periodicals may be duty-free or dutiable at rates not exceeding 15% ad valorem depending upon which of a number of items they might be classified under. Newspapers for which duty-free treatment is provided in the agreement, are now free of duty under item 270.55. Item 270.70, now providing duty-free treatment for tourist literature relating to foreign travel, would be expanded somewhat by section 3 (c) to include catalogs relating to study abroad and posters. Music, now duty-free if printed over 20 years before importation (item 273.05) and otherwise dutiable at 3 to 10% ad valorem (items 273.15 and 273.20), would all be brought by section 3(d) into a new duty-free item 273.10. Finally, section 3 (e) would consolidate the present related items covering maps, globes, atlases, and charts (273.25 to 273.40) into two separate items, the one for globes (273.30) continuing dutiable at the present rate. The articles dutiable under the other items, now duty-free if printed over 20 years before importation or if hydrographic charts and otherwise dutiable at 8.5% ad valorem, would be duty-free under a new item 273.35. Although headnote 1 to schedule 2, part 5, would limit this item to printed maps and charts, it is understood that the term "manuscripts", now duty-free under item 273.60, includes maps, charts, and other informative compositions executed by hand. ARTISTIC OBJECTS Section 4 relates to works of art and antiques. Subsection (a) would consolidate present items 765.05 and 765.07 into a new item 765.03, under which paintings and drawings executed by hand would all be duty-free, whether originals (now duty-free) or copies (now dutiable at 8% ad val.). Subsection (b) would amend the provisions relating to antiques (items 766.20 and 766.25) to provide duty-free treatment for all antiques (other than the value of recent repairs thereon) made over 100 years before entry rather than, as now. providing such treatment only for antiques made before 1830 (rugs 1701, stringed instruments 1801). It is recognized that this substitution of the test of 100 years of age, provided for in the Florence agreement, for the test of production prior to 1830 (or in some instances earlier) in determining antiques entitled to duty-free treatment may create difficult administrative problems, and that it may be necessary in some cases to deny such treatment to articles which may have in fact been made more than a hundred years prior to their entry because of the administrative impossibility of obtaining adequate proof of their age. DOCUMENTS OF INTERNATIONAL ORGANIZATIONS Section 5 relates to documents of foreign governments and international organizations. It would amend item 840.00 to specify that certain audio-visual materials issued by such entities constitute documents entitled to duty-free treatment. The Florence agreement provides for the duty-free treatment of specified types of audio-visual material of an educational, scientific, or cultural character produced by the United Nations or its specialized agencies. The use of the word "wholly" in item 840.00, to describe the extent of the initiative and expense on the part of a foreign government or international organization in relation to a document in order to entitle such document to duty-free treatment, would be replaced by the word "essentially". The present language would appear rather too restrictive to be easily defensible under the Florence agreement in respect to documents of certain international organizations, in the light of the extent to which such organizations may carry on operations of a cooperative nature with private institutions. For the purposes of this implementing provision it would be considered that the initiative and expense would be essen tially that of the organization if it contributed the basic idea for the document and at least 75% of the cost. IMPORTS BY EDUCATIONAL AND SCIENTIFIC INSTITUTIONS Section 6 would make a number of amendments to schedule 8, part 4, relating to importations for public institutions and other institutions established for educational, scientific, literary, or philosophical purposes, or for the encouragement of the fine arts. The descriptive language, specifying the institutions for the use of which the articles described in items 851.10 through 851.60 may be imported duty-free, would be amended by section 6(a) to replace the present words "institution established solely" by the words "nonprofit institution established". Although it is doubted that this change would substantially modify the application of the provision, it would enable a number of the requirements of the Florence agreement to be met by existing, amended, or new items under this present descriptive language without any implication of undue limitation. The provisions of item 851.10 providing for the duty-free importation of enumerated literary, artistic, and audio-visual materials for use by the specified institutions would be amended by deleting articles made unqualifiedly duty-free by earlier sections of the bill (as books, maps, and music), and to include plans, reproductions of drawings and plans (drawings are already included), recorded video tapes, and globes. The addition of plans and reproductions of drawings and plans would be designed to implement the provisions of the Florence agreement for the dutyfree importation of architectural, industrial, or engineering designs and plans, and reproductions thereof, for study in specified institutions. Reproductions of drawings under this item would include designs intended for study, whatever medium is used, however produced thereon or therein, and whether or not they had previously been drawn on some other material. A conforming amendment would also be made to the headnotes to schedule 8, part 4. Although video tapes are not named in the Florence agreement (they were not an article of commerce when the agreement was negotiated), they are closely related in use to the audio-visual materials specified therein, and it is believed they would undoubtedly have been named if they had then been articles of commerce. A number of other countries apply the provisions of the agreement to such tapes. Moreover, a number of countries interpret the Florence agreement provisions for the duty-free treatment of maps to cover globes. This bill would not provide for such treatment of globes generally, but only if imported by the specified nonprofit institutions entitled to import under item 851.10. Since the agreement requires duty-free treatment for all patterns and models imported for educational use by specified institutions, item 851.50 now providing such treatment of models of inventions for exhibition by them would be amended by section 6 (b) to include patterns and all models to be used for either exhibition or for educational purposes. SCIENTIFIC INSTRUMENTS AND APPARATUS General.-Section 6(c) of the bill would add new items 851.60 and 851.65 to provide for the free entry of certain instruments and apparatus and repair components therefor when imported for the use of certain institutions. The freeentry privilege would apply with respect to such articles imported for the use of any nonprofit institution, whether public or private, established for educational or scientific purposes. Paragraph (a) of proposed headnote 6 to schedule 8, part 4, would specifically limit, in terms of the Tariff Schedules of the United States, those instruments and apparatus which would fall within the special duty-free entry provisions of proposed item 851.60. Most classes of instruments and apparatus that could be imported by qualified institutions under item 851.60 are those described in schedule 7, part 2. Schedule 7, part 2 covers a wide variety-and the vast bulk-of scientific and professional precision-type instruments and apparatus, whether |