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Subpart A-General Sec. 500.10 Scope and purpose. 500.11 Definitions. Subpart BEligibility of Firms To Apply for

Adjustment Assistance 500.20 General. 500.21 Statutory criteria. 500.22 Certification of eligibility to apply

under section 302(b) (1) of the

Act. 500.23 Certification of eligibility to apply

under section 302(c) of the Act. 500.24 Material change in conditions; denial

or revocation of eligibility certifi


Subpart C-Adjustment Proposal 300.30 Application for adjustment assist

ance. 500.31 Adjustment proposal. 100.32 Certification of adjustment proposal. 500.33 Material change in conditions. 100.34 Modification of a certified adjust

ment proposal; revocation of certification.

Subpart F- Procedures Sec. 500.60 Forms. 500.61 Submissions. 500.62 Reconsideration and appeals. 500.63 Public access to information.

Subpart - Investigation and Audit; Penalties 500.70 Investigation and audit. 500.71 Penalties. 500.72 Effect on lenders.

AUTHORITY: The provisions of this Part 500 issued under sec. 401, 76 Stat. 902, 19 U.S.C. 1802; E.O. 11075, 28 F.R. 473; and E.O. 11106, 28 F.R. 3911.

SOURCE: The provisions of this Part 500 appear at 37 F.R. 11530, June 8, 1972, unless otherwise noted.

Subpart A-General & 500.10 Scope and purpose.

This part, which replaces in its entirety Part 610 of Chapter VI, Title 15, Code of Federal Regulations, sets forth regulations implementing responsibilities of the Secretary of Commerce under chapters 1 and 2 of title III, Trade Expansion Act of 1962, and section 7 of Executive Order 11075, as amended by Executive Order 11106, with respect to adjustment assistance for firms. § 500.11 Definitions.

(a) "Act" means the Trade Expansion Act of 1962, 76 Stat. 872, 19 U.S.C. 1801

Subpart D-Adjustment Assistance 00.40 Referral of certified adjustment pro

posals; providing adjustment as

sistance. 00.41 Technical assistance. 00.42 Financial assistance. 00.43 Tax assistance.

et seq.

Subpart E-Records and Reports 00.50 Records. 00.51 Reports.

(b) "Secretary” means the Secretary of Commerce or his delegate.

137 F.R. 11530, June 8, 1972.


(c) “Department” means the Depart (3) the applicant firm is a part of such ment of Commerce.

industry; (d) “OTAA” means the Office of Trade (b) The Tariff Commission has made Adjustment Assistance, Department of an affirmative finding pursuant to secCommerce.

tion 301(c) (1) of the Act that, as a re(e) "Director" means the Director of sult in major part of concessions granted OTAA.

under trade agreements, an article like (f) “Agency” includes any agency, de or directly competitive with an article partment, board, wholly or partly owned produced by the firm is being imported corporation, instrumentality, commis into the United States in such increased sion or establishment of the United quantities as to cause, or threaten to States.

cause, serious injury to such firm; or (g) "Firm” includes individual (c) (1) One half of the Tariff Commisproprietorship, partnership, joint ven sioners voting in a case under section ture, association, corporation (including 301(b) (1) or 301(c) (1) of the Act have a development corporation), business made an affirmative finding and (2) the trust, cooperative, trustees in bank President has decided to accept the findruptcy, and receivers under decree of any ing of those Commissioners voting in the court. Where determined necessary by affirmative as the finding of the Comthe Secretary to prevent unjustifiable mission: Provided, That in a case arising benefits, a firm, together with any prede under section 301(b) (1) of the Act the cessor, successor or affiliated firm con President shall also have provided, purtrolled


substantially beneficially suant to section 302(a) of the Act, that owned by substantially the same person firms in the industry may request the or persons may be considered a single Secretary for certification of eligibility, firm.

and the applicant firm is a part of such (h) "Person” means an individual, industry. firm, trust or estate. (i) "Adjustment proposal" means

$ 500.22 Certification of eligibility to a

apply under section 302(b)(1) of proposal for economic adjustment of a

the Act. firm filed under Subpart of this part.

(a) Following an affirmative finding Subpart B-Eligibility of Firms. To

with respect to an industry by the Tariff Apply for Adjustment Assistance Commission pursuant to section 301(b)

(1) of the Act (or by the President in $ 500.20 General.

cases involving an affirmative finding by No firm may apply for adjustment as one half of the Commissioners voting) sistance unless first certified by the Di and provision by the President pursuant rector as eligible to apply pursuant to to section 302(a) of the Act that firms in the requirements of section 302(b) (1) or such industry may request the Secretary 302(c) of the Act and of this subpart.

for certification of eligibility to apply

for adjustment assistance, any firm in $ 500.21 Statutory criteria.

such industry may apply for such assistA firm may seek certification of eligi ance by completing and filing an applicability to apply for adjustment assistance tion as specified in paragraph (b) of this only if :

section. Such application must be filed (a) (1) The Tariff Commission has

within 1 year of the date of the Presimade an affirmative finding pursuant to

dent's, action under section 302(a) of

the Act, or such other period of time as section 301(b) (1) of the Act that, as a

he President may specify at the time of result in major part of concessions

such action: Provided, That the Director granted under trade agreements, an ar

may grant an extension of time for filing ticle is being imported into the United such application upon a showing to his States in such increased quantities as to satisfaction that timely submission of cause or threaten to cause serious in the application could not reasonably have jury to the domestic industry producing been made: And provided further, That an article that is like or directly com any request for extension of time herepetitive with the imported article, (2) under must be made prior to expiration the President has provided, pursuant to of the time within which such application section 302 (a) of the Act, that firms in would otherwise be required to be filed. such industry may request the Secretary (b) An application for certification of for such certification of eligibility, and eligibility to apply for adjustment assist

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ance under this section must be made in impact on its economic condition from accordance with the provisions of the which it cannot reasonably be expected Act, this part and instructions on the to recover without adjustment assistance appropriate OTAA form (see $ 500.60), provided under this part, and (ii) “threat and must be accurate and complete. In of serious injury” means that an ecomaking such applications, a firm should nomic trend has been established that accurately set forth all facts and con can reasonably be expected to continue ditions that are material to its claim and to result in serious injury to the firm for such assistance, including the ex in the foreseeable future. A long-range tent to which the afirmative finding of possibility of serious injury is not suffithe Tariff Commission (with respect to cient to demonstrate a threat thereof. the industry of which the firm is a part) (3) Causation. Increased imports of applies to the firm and the extent of the the article in question shall be considered firm's injury (or threatened injury) re to have caused serious injury, or threat sulting from increased imports of the thereof, to the applicant firm if the Secproduct that was the subject of the retary finds that such imports have been Tariff Commission's investigation. If in the major factor in causing such injury sufficient or inconsistent information is or threat thereof. submitted in support of such application, (e) While OTAA will provide all practhe firm will be required to provide addi ticable counsel and assistance in the tional information or otherwise correct

preparation of applications under this its submission. However, every effort will section for certification of eligibility to be made by OTAA to proceed with proc apply for adjustment assistance, the essing of the application to the extent burden is on each firm to establish its feasible in the interim.

own case. (c) The Secretary will certify a firm that has made a timely application under

8 500.23 Certification of eligibility to this section as eligible to apply for ad

apply under section 302 (c) of the justment assistance upon a finding that:

Act. (1) The article like or directly com Following an affirmative finding with petitive with the imported article that respect to a firm by the Tariff Comwas the subject of the Tariff Commis mission pursuant to section 301(c)(1) of sion's investigation is or was a signifi the Act (or by the President in cases incant part of the applicant firm's line of volving an affirmative finding by one half production; and

of the Commissioners voting), such firm (2) The serious injury or threat may apply for certification of eligibility thereof found by the Tariff Commission to apply for adjustment assistance by to exist with respect to the industry in filing with the Director a sworn statequestion is likewise applicable to the ment, subscribed by the owners, partners applicant firm.

or officers of such firm that no material (d) In making the finding called for facts were omitted from, and there has in paragraph (c) of this section the Sec occurred no significant change in ecoretary will, among other pertinent con nomic circumstances affecting the firm siderations, give due regard to the follow since presentation of the firm's case to ing factors which applicants should the Tariff Commission. Following receipt document in detail

of such statement, the Secretary ordi(1) Economic factors. In determining

narily will certify promptly that such whether increased imports of the article firm is eligible to apply for adjustment in question have caused serious injury

assistance. or threat thereof to such firm, economic factors that are considered relevant in

$ 500.24 Material change in conditions; clude: (i) Idling of the firm's productive

denial or revocation of eligibility

certification. facilities capable of producing the like or directly competitive article, (ii) in (a) A firm that has applied for certifiability of the firm to operate at a level cation of elig ity to apply for adjustof reasonable profit, (iii) unemployment ment assistance under $ 500.22 or $ 500.23 or underemployment in the firm, and must promptly inform the Director in (iv) competitive position of such firm in writing of any material change in ecoreiation to other firms in the industry. nomic conditions affecting such firm, in

(2) Injury or threat thereof. For the cluding any change in the principal purpose of this section, (i) "serious in ownership of such firm and any change jury” to a firm means a major adverse that has occurred in the facts contained

in or underlying the representations set forth in the petition that was filed with the Tariff Commission under section 301 (b) (1) or (c) (1) of the Act or in its application to the Secretary under $ 500.22 or $ 500.23 for certification of eligibility (and any amendments thereto).

(b) At any time, prior to certification of an adjustment proposal, the Secretary may deny or revoke certification of a firm as eligible to apply for adjustment assistance under $ 500.22 or $ 500.23 upon a finding that: (1) As a result of a material change in economic conditions affecting such firm following the date of the Tariff Commission's finding, adjustment assistance under this part is not required by such firm to achieve economic recovery from the serious injury or threat thereof found by the Tariff Commission to exist with respect to the firm or the industry of which it is a part; (2) such firm has willfully or negligently failed promptly to inform the Director in writing of a material change in economic conditions affecting such firm, as required under paragraph (a) of this section or (3) such firm or its agent has made false or misleading representations or statements or has falsified or concealed any material fact in connection with the application for such certification.

Subpart C-Adjustment Proposal $ 500.30 Application for adjustment

assistance. Application for adjustment assistance by any firm certified under $ 500.22 or $ 500.23 as eligible to apply for such assistance must be made within 2 years after the date of such certification, by completing and filing with the Secretary the appropriate OTAA form (see $ 500.60). An applicatior. for tax assistance under this section will also satisfy the requirements of $ 500.43(a): Provided, That for purposes of determining the taxable years for which net operating losses may be carried back pursuant to certification by the Secretary of the firm's eligibility for tax assistance under $ 500.43(c), the filing date of such application for purposes of section 317(a) of the Act and $ 500.43(a) shall be the date of the Secretary's certification of the firm's adjustment proposal pursuant to $ 500.32.

$ 500.31 Adjustment proposal.

(a) Filing. Within a reasonable time after filing an application for adjustment assistance under $ 500.30, a firm shall file with OTAA an adjustment proposal, including a detailed description of the firm's plan for economic adjustment, the type and extent of adjustment assistance requested to carry out such plan and all available information bearing on what impact, if any, implementation of such plan would have on the quality of the human environment."

(b) Preliminary proposal. A firm that has applied for adjustment assistance under $ 500.30 is encouraged to consult informally with OTAA regarding the preparation and scope of its adjustment proposal. The firm may submit a preliminary proposal to OTAA in order to determine whether the adjustment assistance being sought may be provided under the Act and whether the firm's plan for its economic recovery is likely to satisfy criteria for certification of & proposal.

(c) Technical assistance. During informal consultation with OTAA or after submitting a preliminary proposal, a firm may request, and the Secretary may at his discretion authorize, technical assistance in the preparation of a sound adjustment proposal. To the maximum extent practicable, technical assistance under this section shall be provided through existing agencies, and otherwise through private individuals or institutions. A firm receiving technical assistance under this section may be required by the Secretary to bear a portion of the cost thereof as determined to be appropriate.

(d) Environmental impact. Upon submission of a preliminary adjustment proposal (or, if none is submitted, upon filing an adjustment proposal) pursuant to this section, and at all stages of proposal development thereafter, OTAA will undertake to determine what impact, if any, the firm's plan for economic recovery may have on the quality of the human environment. Should the Director consider that an adjustment proposal could, if implemented as initially submitted,

1 See, National Environmental Policy Act of 1969, 42 U.S.C. section 4321 et seq.; Council on Environmental Quality Guidelines, 38 F.R. 7724, Apr. 23, 1971.

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