153, of the Code of Federal Regulations. They set forth procedures and rules applicable to proceedings under the Anti-Dumping Act, 1921, as amended (19 U.S.C. 160 et seq.), the assessment of the special dumping duty, and protests relating to matters under the Act.

Subpart A is concerned with fair value of imported merchandise. Subpart B sets forth provisions on availability of information: In general, all information, but not necessarily all documents, obtained by the Treasury Department, including the Customs Service, in connection with any antidumping proceeding is available for inspection or copying by any person. With respect to documents prepared by an officer or employee of the United States, factual matter, as distinguished from recommendations and evaluations contained in any such documents is available by summary or otherwise on the same basis as information contained in other documents. Included is a provision on requests for confidential treatment of information, and one on standards for determining whether information will be regarded as privileged or confidential.

Subpart C-Procedures and Determinations under Anti-Dumping Act, 1921, as Amended-discusses suspected dumping, adequacy of information, initiation of antidumping proceeding, antidumping investigations, re-entry into the U.S. market, negative and affirmative determinations, opportunity to present views, and modification or revocation of findings.

Subpart D-Action by District Director of Customs-describes action by the district directors of customs upon receipt of a Withholding of Appraisement Notice; reimbursements of dumping duties; release of merchandise; type of bond required; conversion of currencies; dumping duty; timely submission of information for dumping appraisement purposes; and method of computing dumping duty.

Subpart E-Antidumping Review Procedures-describes the manner of making protests and the procedure for review of negative determinations.

There is included as part of the revision a redesignation table showing the relationship of sections in the revised part 153 to sections in the existing part 153.

Fed. Reg., Vol. 41, No. 124, June 25, 1976, pp. 26203–26215; GATT Doc. L/4407, Nov. 18, 1976.

Public Law 94-511 (90 Stat. 2440; 19 U.S.C. 1202 note), approved October 15, 1976, exempted from duty under item 694.40 of the Tariff Schedules of the United States certain aircraft components and materials installed in aircraft previously exported from the United States where the aircraft is returned without having been advanced

in value or improved in condition while abroad. In such cases the rate of duty on the date of such entry is to be assessed upon the full value of such aircraft less the value of such components and materials.

See also H. Rept. 94-1060 and S. Rept. 94-1349.

On November 26, 1976, President Ford issued Proclamation 4478, raising import duties on some European brandies. The proclamation recalled that the President had determined in 1963 that the European Economic Community maintained unreasonable import restrictions on poultry from the United States and he had thereupon suspended certain trade agreement concessions of the United States reflected in the U.S. Schedules to the General Agreement on Tariffs and Trade (GATT). In 1974, in an effort to encourage the resolution of outstanding trade disputes between the United States and the European Communities (the so-called "chicken war"), the United States had partially restored the application of the benefits of the suspended trade agreement concessions on certain brandies.

President Ford stated that no solution having been reached between the United States and the European Community regarding the removal of unreasonable import restrictions on poultry from the United States, he was terminating the 1974 adjustment and was raising the rates of duty on certain brandies. The proclamation raised the import duty on bottled Common Market brandies priced between $13 and $17 a gallon from $1.25 to $3 a gallon. The duty on bulk brandy selling between $9 and $17 a gallon was raised from $1 to $3.

In Proclamation 4480, issued December 8, 1976, President Ford amended Proclamation 4478, to provide that the rate of duty for such brandy valued over $17 per gallon should continue to be $5 per gallon.

Fed. Reg., Vol. 41, No. 230, Nov. 29, 1976, pp. 52287-52288, and No. 239, Dec. 10, 1976, pp. 53967-53968. On Dec. 7, 1976, the European Economic Community announced it was increasing its tariff on turkey parts shipped from the United States. The Washington Post, Dec. 7, 1976, p. D8.

State Taxation

The Supreme Court, on January 14, 1976, in Michelin Tire Corp. v. Wages, 424 U.S. 935 (1976), held that Georgia's assessment of a nondiscriminatory ad valorem property tax against petitioner's inventory of imported tires maintained at a warehouse in Georgia was not within the constitutional prohibition against States laying "any Imposts or Duties on Imports." It overruled the contrary decision in Low v. Austin, 13 Wall. 29 (1871).

Petitioner, a New York corporation qualified to do business in Georgia and operating as an importer and wholesale distributor in the United States for tires manufactured abroad by Michelin Tires, Ltd., argued that the Georgia ad valorem property taxes against his

inventory were prohibited by Art. I, § 10, cl. 2, of the Constitution. That clause provides in pertinent part that "No State shall, without the consent of Congress, lay any Imposts or Duties on Imports or Exports, except what may be absolutely necessary for executing its Inspection Laws . . . ."

The Georgia Supreme Court held that the tires had lost their status as imports and became subject to taxation because they had been mingled with other tires. Without addressing the question of whether the tires had lost their status as imports, the U.S. Supreme Court held that the Georgia Supreme Court was correct in holding that the tires were subject to the ad valorem property tax.

The Court found nothing in the history of the Import-Export Clause (whose purposes were to commit to the Federal Government the exclusive power to regulate foreign commerce and the exclusive right to all revenues from imposts and duties on imports, and to assure the free flow of goods through the seaboard States to inland States) to suggest that a nondiscriminatory ad valorem property tax on imported goods no longer in import transit was the type of exaction that was regarded as objectionable by the Framers of the Constitution. It stated that "Imposts or Duties" as used in the Import-Export Clause connoted exactions directed only at imports or commercial activity as such. The Court added:

In any event, since prohibition of nondiscriminatory ad valorem property taxation would not further the objectives of the ImportExport Clause, only the clearest constitutional mandate should lead us to condemn such taxation.

Export Control

Continuance of Regulations

The Export Administration Act of 1969, as amended (50 U.S.C. App. 2401-2413), expired in accordance with its terms on September 30, 1976. On the same date, President Ford, in reliance on the authority provided by the Trading with the Enemy Act (12 U.S.C. 95a; 50 U.S.C. App. 5(b)), issued Executive Order 11940 continuing the regulation of exports. The text of that order follows:

By virtue of the authority vested in me by the Constitution and statutes of the United States of America, including section 5(b) of the act of October 6, 1917, as amended (12 U.S.C. 95a, 50 U.S.C. App. 5(b)), and as President of the United States of America, and in view of the continued existence of the national emergencies declared by Presidential Proclamation No. 2914 of December 16, 1950, and Presidential Proclamation No. 4074 of August 15, 1971, and the importance of continuing (a) to exercise the necessary vigilance over exports from the standpoint of their significance to the national security of the United States; (b) to further significant

ly the foreign policy of the United States and to fulfill its international responsibilities; and (c) to protect the domestic economy from the excessive drain of scarce materials and reduce the serious inflationary impact of foreign demand, it is hereby ordered as follows:

SECTION 1. Notwithstanding the expiration of the Export Administration Act of 1969, as amended (50 U.S.C. App. 2401-2413), the provisions for administration of that act contained in Executive Order No. 11533 of June 4, 1970, as continued in effect by Executive Orders Nos. 11683 of August 29, 1972, 11798 of August 14, 1974, and 11818 of November 5, 1974, and as amended by Executive Order No. 11907 of March 1, 1976, shall continue in full force and effect and shall authorize the exercise and administration of export controls, under the authority vested in me as President of the United States of America by section 5(b) of the act of October 6, 1917, as amended (12 U.S.C. 95a, 50 U.S.C. App. 5(b)). SEC. 2. Except to the extent another basis is provided in the second sentence of section 4 of this order, all rules and regulations issued by the Secretary of Commerce under the authority of the Export Administration Act of 1969, as amended, including those published in Title 15, Chapter III, Subchapter B, of the Code of Federal Regulations, Parts 368 to 399 inclusive, and all orders, regulations, licenses and other forms of administrative action issued or taken pursuant thereto, shall until amended or revoked by the Secretary of Commerce, remain in full force and effect, the same as if issued or taken pursuant to this Order, except that the maximum fine which may be imposed under section 387.1(a)(1) of Title 15, Code of Federal Regulations, shall not exceed $10,000 and that the civil penalty provided for under section 387.1(b) (3) thereof will not be applicable to any violation of the regulations under this Order.

SEC. 3. Provisions for the administration of Section 38(e) of the Arms Export Control Act (22 U.S.C. 2778(c)) may be made and shall continue in full force and effect until amended or revoked under the authority of section 5(b) of the act of October 6, 1917, as amended (12 U.S.C. 95a, 50 U.S.C. App. 5(b)), and this Order shall constitute authority for the issuance and continuation in full force and effect of rules and regulations by the President or his delegate, and all orders, licenses, and other forms of administrative action issued or taken pursuant thereto, relating to the administration of section 38(e) of the Arms Export Control Act.

SEC. 4. The delegations of authority in this order shall not affect the authority of any agency or official pursuant to any other delegation of Presidential authority, presently in effect or hereafter made, under section 5(b) of the act of October 6, 1917, as amended. Those regulations issued under the Export Control Act of 1949, as amended, to implement foreign policy set forth in Executive Orders Nos. 11322 of January 5, 1967, and 11419 of July 29, 1968, shall until amended or revoked by the Secretary of Commerce continue to apply as regulations issued under such orders.

Fed. Reg., Vol. 41, No. 193, Oct. 4, 1976, pp. 43707-43708.

Firearms

In United States v. Casillas-Munoz, 542 F.2d 508 (1976), the U.S. Court of Appeals for the Ninth Circuit held that there was sufficient evidence to support conviction for illegal exportation of firearms where during almost the entire time that elapsed between defendant's acquisition of the firearms and his attempt to export them he was under surveillance and had not during that time obtained approval from the Department of State of a license to export them, nor filed an approved application with the District Director of Customs as required by regulation (22 CFR 123.52-53). In addition, the Court held that as a result of the surveillance there was probable cause to conduct a search, without warrant, 300 feet north of the Mexican border, of defendant's vehicle on which the weapons had been seen to be loaded.

Grain Inspection

The U.S. Grain Standards Act of 1976 (P.L. 94-582; 90 Stat. 2867;7 U.S.C. 71 note), approved October 21, 1976, was designed to improve the U.S. inspection and weighing system for grain moving in interstate and foreign commerce, with the purpose of restoring confidence among foreign as well as domestic buyers. It provides a unified, Federal system of grain inspection at export elevators and the largest interior terminal areas; provides for official weighing at both export and interior points; establishes the Federal Grain Inspection Service within the Department of Agriculture; provides for registration of large grain companies; and strengthens conflicts of interest provisions, civil and criminal penalties, investigative authorities, and expanded overseas grain shipment monitoring.

In signing the legislation, President Ford noted his objection to the provision for a separate service, the Federal Grain Inspection Service, but stated, "Without the strong grain inspection and weighing reform measures included in this bill, our whole international grain trade is jeopardized."

See also H. Repts. 94-966 and 94-1722, and S. Rept. 94-747, and Weekly Compilation of Presidential Documents, Vol. 12, No. 43, Oct. 25, 1976, pp. 1555–1556.

Petroleum and Petroleum Products

The Office of Export Administration of the Department of Commerce announced the adoption, effective September 30, 1976, of interim regulations concerning export controls on petroleum and petroleum products. It solicited written comments thereon for consideration prior to the promulgation of final regulations on the subject. The interim regulations, in general, accomplish the following: (a) Continue the existing controls over the export of petroleum