the compiling, analyzing and publishing of information concerning laws, regulations, and business practices affecting foreign trade at home and abroad and involve active efforts to secure adoption of those which are beneficial and modification or elimination of those which are detrimental to the advancement of world trade. The Office thus makes investigations and recommendations concerning such matters as tariffs, preference systems, and subsidy arrangements; trade restrictions based on quota systems, bilateral trade agreements, and exchange controls; State trading, government monopolies, and cartels; restoration of private trade with ex-enemy countries and other war areas; simplification of customs regulations, standardization of business codes and practices, and equitable revision of tax laws; and elimination of restrictive or discriminatory conditions or measures generally. In connection with its promoțional responsibilities, the Office also administers the China Trade Act of 1922, as amended (42 Stat. 849; 43 Stat. 995; 49 Stat. 1921; 53 Stat. 1432; 15 U.S.C. 141 et seq.), under which companies may secure Federal incorporation pursuant to regulations issued by the Secretary of Commerce, provided that they will in his judgment aid in developing markets in China for goods produced in the United States. Corporations organized and operated in accordance with the Statute and regulations, doing business solely in China, enjoy certain tax exemptions under the internal revenue laws. The administrative functions of the Secretary of Commerce under the Foreign Trade Zone Act of 1934 (48 Stat. 998; 19 U.S.C. 81a), as well as those of the Executive Secretary of the Foreign Trade Zones Board, likewise fall within the Office of International Trade. The organization, functions and procedure of the Board are separately stated in Chapter IV of this title. 360.4 Foreign trade policy functions. It is the further function of the Office of International Trade to participate with the State Department and other interested agencies in formulating the foreign commercial and economic policy of the United States; representing the Department of Commerce on the President's Executive Committee for Economic Foreign Policy, the interdepartmental Trade Agreements Committee and the Committee for Reciprocity Information, as well as other interdepartmental committees, such as the Board of the Foreign Service. Through the membership of the Secretary of Commerce on the National Advisory Council, the Office also participates in the foreign lending and investment policy and program of this country, as carried out by the International Monetary Fund, the World Bank, the Export-Import Bank, and otherwise. The Department's responsibilities in connection with the activities of the United Nations, particularly with respect to the Economic and Social Council, the Food and Agriculture Organization, and the proposed International Trade Organization, are likewise borne by this office. § 360.5 Administration of export control. The export licensing powers conferred on the President by section 6 of the act of July 2, 1940 (54 Stat. 714, as amended; 50 U.S.C. App., and Sup., 701), as amended and extended by Public Law 389, 79th Cong., approved May 23, 1946, which were formerly exercised by the Foreign Economic Administration, have been transferred to this Office, as stated above, along with responsibility for liquidating certain other parts of the Foreign Economic Administration. $360.6 Basic organization. The Office of International Trade is composed of four main organizational units, viz., (a) Office of the Director, (b) Areas Branch, (c) Commodities Branch, and (d) Special Services and Intelligence Branch. $ 360.7 Office of the Director. The Office of the Director, which exercises general supervision over, and furnishes certain staff services to, the three operating Branches, consists of a Director, a Deputy for Trade Policy, a Deputy for Trade Promotion, an Assistant for Occupied Areas and Reparations, a Legal Staff, an Administrative Management Staff, and a Foreign Service Liaison Staff. It also includes the Executive Secretary of the Foreign Trade Zones Board, his functions, as well as the administrative functions of the Secretary of Commerce under the Foreign Trade Zone Act, being vested in the Office of the Director. The Deputy for Trade Policy has primary responsibility for direction, review and coordination of policy formulation and execution of the three operating Branches. It is also his function to coordinate the Department's representation on interdepartmental and other committees and its relations with international organizations, conferences, etc., dealing with international economic and commercial policy. The Deputy for Trade Promotion has primary responsibility for directing, reviewing, and coordinating operations of the three Branches relating particularly to promotional work, including formation and use of industry advisory committees, relations with the Foreign Service, and all plans or programs for stimulating exports or imports or for rendering specialized services to exporters or importers. He also supervises relations with Department field offices insofar as concerns foreign trade. In addition, he represents the Secretary on the Committee of Alternates of the Foreign Trade Zones Board. The Assistant for Occupied Areas and Reparations has primary responsibility for coordinating all activities relating to trade and reparations with respect to Germany, Japan and other occupied areas and for providing representation of the Department on interdepartmental and other committees dealing with these subjects. The staff operations centralized in the Office of the Director are carried on by a Legal Staff, which provides all legal advice and services to the Office; an Administrative Management Staff, which handles all matters of budget, personnel, office space and equipment, and related subjects; and a, Foreign Service Liaison Staff which provides liaison with the State Department in connection with the Foreign Service, coordinates Department participation in selection, training and assignment of Foreign Service personnel engaged in commercial reporting, surveys needs for foreign commercial reporting and undertakes to secure necessary changes or improvements in such reporting, and serves as a channel for communications between the operating branches and the Foreign Service. § 360.8 Areas Branch. The Areas Branch, which is organized on a geographical basis, compiles, analyzes and disseminates foreign trade information with respect to particular countries or regions and represents the Department on committees or other groups dealing with world trade problems on an area basis. It is also responsible for preparing basic information for use in negotiating reciprocal trade agreements, administers the China Trade Act, and maintains liaison with economic staffs of foreign governments in this country and with economic representatives of this country abroad. $ 360.9 Commodities Branch. The Commodities Branch is organized along commodity lines, one Division having jurisdiction over foodstuffs, another over machinery, etc. This Branch, however, serves two distinct functions, each under the direction of a Deputy: (a) It compiles, analyzes and disseminates foreign trade information with respect to particular commodities or industries, (b) it administers the export licensing and control program. It also represents the Department on committees dealing with commodities, and maintains liaison with other agencies, including foreign government missions, with regard to world requirements and supply situations. The Director of the Commodities Branch also has responsibility for determining ownership of, and compensation for, property requisitioned during the war by predecessors of the Office of International Trade, viz., the Foreign Economic Administration, the Office of Economic Warfare, the Board of Economic Warfare, the Economic Defense Board, the Office of Export Control, or the Administrator of Export Control, pursuant to the act of October 10, 1940 (54 Stat. 1090, as amended; 50 U.S.C. App. and Sup., 711), as amended. This act authorized the requisitioning of any property the exportation of which was prohibited or curtailed in accordance with the act of July 2, 1940 (54 Stat. 714), as amended. This is a residual war function and will terminate with the settlement of outstanding claims. Reference of disputed claims is made to a Compensation Commissioner, before whom the dispute may be heard, but ultimate decision rests with the Director. This authority is exercised under delegation from the President. (E. O. 8942, E. O. 9361, E. O. 9380, E. O. 9630, 3 CFR Supps.) § 360.10 Special Service and Intelligence Branch. The Special Services and Intelligence Branch consists of three Divisions, viz., Transportation and Communications Division, Commercial Intelligence Division, and Special Services Liaison Division. As these titles sug zest, there are combined in this Branch the functions of compiling, analyzing disseminating information as to foreign business establishments, export and import connections abroad, activities of foreign trade associations, etc., making studies and recommendations relating to the removal of obstructions to development of transportation and communications, and providing personalized services to exporters and importers, particularly in planning selling or buying operations abroad. This Branch issues various publications, such as foreign buyers lists, reports on particular foreign establishments, surveys of conditions abroad in particular countries or affecting particular commodities, aids and guides to exporters and importers, and other material helpful to the trade. § 360.11 Field offices. The Office of International Trade utilizes the regular field offices of the Department of Commerce at which any publications or services of the Office may be secured. These field offices are listed in the statement published by the Office of Field Operations in Parts 350 and following of this chapter. Forms and information concerning export control may also be secured from such offices. Field offices, however, have not been delegated any rule-making or adjudicatory authority with respect to export licensing or otherwise except that the New York office is authorized to amend or extend licenses issued in Washington. Applications for licenses must be filed with, and licenses must be issued by, the Washington Office. Field offices have no responsibilities with respect to the granting of compensation for requisitioned property or relating to the China Trade Act or the Foreign Trade Zone Act. Subpart B-Procedure $ 360.12 Functions involving administrative procedure. The preceding description of organization and functions demonstrates that, except with respect to the administration of export control, the granting of compensation for requisitioned property and the administration of the China Trade Act and the Foreign Trade Zone Act, the Office of International Trade exercises no regulatory or adjudicatory functions and consequently does not employ procedures through which rights are asserted or obligations are enforced. The procedure applicable to the Foreign Trade Zone Act is stated in Chapter IV of this title. The other three exceptions do, however, call for a statement of procedure. § 360.13 Procedure relating to the China Trade Act. The procedure and forms governing organization and operation of corporations under the China Trade Act are set forth in regulations duly issued by the Secretary of Commerce and published as Parts 300 and 301 of this chapter. They are administered jointly by the Secretary and the China Trade Act Registrar, the latter being a Foreign Service Officer in China, but the Registrar is subject to supervision by the Secretary and his actions may be appealed to the Secretary for review. Three or more persons, a majority of whom must be citizens of the United States, may file an application in duplicate on Form 1 for a certificate of incorporation as a China Trade Act corporation. It may be filled with either the Secretary or the Registrar, as may any other documents required to be filed, but must be transmitted to the Secretary, who alone may issue the certificate. The application must be accompanied by articles of incorporation in quintuplicate and, before a certificate of incorporation may be issued (Form 2), at least 25% of the authorized capital stock must have been paid for in cash or property. Where payment is made in property, a statement (Form 6) must be filed by the directors within six months certifying as to the value of such property, and a supporting certificate of property value (Form 7) by two disinterested persons must also be filed-both in duplicate. The articles must name an accredited agent in the District of Columbia, be accompanied by a letter of consent and a power of attorney, and must designate the location of the corporation's principal office in the District of Columbia. Provision is also made for the securing of certificates of amendment of the articles (Form 3), certificates of authorization for voluntary dissolution (Form 4), and certificates of authorization for extension (Form 5)—all of which are to be filed in quintuplicate with either the Secretary or the Registrar. Minutes of stockholders' meetings, certified copies of by-laws, annual reports (Form 8), and certificates of distribution of special tax saving dividends (Form 9) must also be filed. The last named certificates furnish the Secretary with the necessary data on the basis of which he in turn certifies to the Commissioner of Internal Revenue as to the tax status of the corporation. The Registrar is authorized to investigate the affairs of China Trade Act corporations to ascertain whether they are operating within the law; to issue subpoenas, order depositions taken, etc., for that purpose; and, in the event that he finds an evasion of the law, to institute proceedings for revocation of the certificate of incorporation. Appeals to the Secretary may be taken from action of the Registrar within six months thereafter, the procedure being for the appellant to file his appeal and a full statement of the facts with the Registrar, the latter then certifying as to his action and the facts, and forwarding the documents to the Secretary. In the event of failure of the Registrar to certify, the appeal may be taken directly to the Secretary, but the Registrar must furnish the Secretary with a statement of his action and the reasons therefor. concerns § 360.14 Procedure relating to requisitioned property. Insofar as the requisitioning functions, the only remaining activities involve determination of ownership and compensation, hence only the procedure applicable to claims is of any present significance. Any claimant may petition the Office of International Trade, Department of Commerce, Washington 25, D. C., for compensation for property in which he asserts an interest, which was requisitioned by one of the above-named predecessors of the Office of International Trade. Each petition must be filed in duplicate and must fully identify the claimant, describe the property and claimant's alleged interest therein, state the fair value of the property when requisitioned, specify the nature and amount of the claim, set forth the facts establishing ownership, and indicate any other outstanding interests in the property in the nature of lien, pledge, contract of purchase, or otherwise. The petition must be verified. It may be signed by an attorney-in-fact if accompanied by power of attorney in duplicate original. The petition must also be accompanied by a list and description of the property requisitioned, copies of any purchase orders or contracts covering the property, originals of all documents of title, including warehouse receipts, bills of lading, etc., evidencing or affecting claimant's ownership, and evidence of any payment for such property and a statement of any discount or rebate-all such documents to be filed in duplicate. Determinations of ownership and compensation are made by the Director of the Commodities Branch pursuant to recommendations made by the Compensation Commissioner. The Compensation Commissioner reviews the claims and all related documents, may hold oral hearings where he deems them necessary, may require any person to appear or file claim within the limited time or else be bound by any determination made against him, and makes his recommendations on the evidence submitted. All hearings arè public and are held at such times and places as the Compensation Commissioner may prescribe upon reasonable notice. Witnesses may be examined orally and under oath and depositions or other documentary evidence may be taken and received. Provision is made by statute for resort to the courts by claimants who are dissatisfied with an award of compensation made according to the above procedure. § 360.15 Procedure relating to export control. The export licensing functions of the Office of International Trade are administered in accordance with rules and regulations published in the FEDERAL REGISTER Under Title 32, Chapter VIII, Subchapter B (see 32 CFR, Supps., Chapter VIII). The general scheme of export control is that all countries to which exportation is permitted are divided into two classes, viz., Group K and Group E; a list of commodities, known as the "Positive List", indicates those commodities which can be exported to Group K countries only when so authorized by an export license issued by the Office: other commodities may be exported to Group K countries under general license requiring no application and no issuance of any document of license; but all commodities shipped to Group E countries require application for and issuance of specific licenses. There are certain exceptions to the foregoing, viz., no commodities shipped to Canada or a territory or possession of the U. S. require a license; no specific licenses are required, the general license being sufficient, where the value of the shipment is under prescribed amounts, or where the property constitutes personal baggage, or a gift parcel, or is going to a member of the U. S. armed forces or other U. S. representative abroad, etc.; there are special provisions applicable to certain commodities such as textiles, nylon hosiery, new tires and tubes, penicillin, building materials, etc. There are also some situations in which, instead of using individual licenses applicable only to particular shipments of specified commodities to specified consignees, exporters may use blanket licenses applicable to several consignees in the same country, or may secure other specialized types of licenses, as described below. An individual license, where necessary, is secured by filing an application with the Office of International Trade, Department of Commerce, Washington 25, D. C., on Form IT-419. This application, when validated by stamp or other writing on its face, constitutes a license authorizing shipment of specified quantities of designated commodities from a designated consignor to a designated consignee, and is returned to the applicant. If it is denied, it is so marked and returned; if it is insufficient in some material respect, it is returned without action, but with instructions. It may, however, be granted in part and denied in part. Licenses are valid, subject to certain exceptions especially with respect to foodstuffs, for one year from the date of validation. If not used, or upon expiration, they must be returned to the Office of International Trade. The application (Form IT-419) must state the name and address of the applicant, the consignor (if different from applicant), the foreign purchaser, the foreign consignee (if different from foreign purchaser), the party for whose account the applicant is exporting (if not for his own account), and the supplier of the goods (if the applicant is not the manufacturer and is not shipping from stock) as well as the character of the supplier as manufacturer, distributor, etc.; must fully describe the goods to be exported, listing quantities, the Department of Commerce Schedule B numbers, and prices; and must indicate how prices charged are computed in terms of basic domestic price and export premium so as to show compliance with applicable price regulations. The exporter, when making shipment, is required to present the license to the Collector of Customs at the port of exit or, where shipment is by mail, to the postmaster at the point of mailing, who retains and returns it to the Office of International Trade (except where partial shipments are made, in which case the license is returned to the exporter, with the amount of shipment noted thereon, for further use and later retention and return to the Office). Most commodities which may not be exported to a particular destination under general license may nevertheless be exported under blanket license which permits shipment of specific commodities by a named exporter to two or more specifically named consignees located in a designated Group K or Group E country. Applications for blanket licenses are submitted on Form IT-419, with attached lists of consignees, purchasers, and other parties in interest, and with total values and quantities shown. The holder of such a license need not present it to the Collector of Customs at the port of exit, but must certify on the export declaration that the shipment is made pursuant to blanket, license, furnishing the number thereof and the date of validation, and must endorse the facts regarding the shipment on the back of the license. Limited production licenses may be used in lieu of individual licenses by manufacturers of 1945 and 1946 passenger cars, trucks, bus chasses, and trucktractors, provided such manufacturers have been authorized by the Civilian Production Administration to produce these vehicles for export. Application must be made on Form IT-48, which requires merely that the applicant identify himself and the products (including quantity), but must be accompanied by a proposed schedule of distribution by countries, or, if the applicant has not been notified of his permitted exports for the specified period, the Office of International Trade will inform him thereof by letter and, upon receipt of his proposed distribution schedule, will furnish him (on Form IT-38 or IT-43) with an approved schedule indicating his permitted exports of each product to each country during the specified period. |
