Summary: H.R.7371 — 93rd Congress (1973-1974)All Information (Except Text)

There is one summary for H.R.7371. Bill summaries are authored by CRS.

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Introduced in House (05/01/1973)

Foreign Trade and Investment Act - Declares the purpose of the Act to insure that the production of goods which have historically been produced in the United States is continued and maintained, to encourage the return of production of goods that has been transferred abroad, and to encourage the development of new product production in the United States.

Title I: - Provides that if a foreign corporation is a controlled foreign corporation for an uninterrupted period of 30 days or more during any taxable year, every United States shareholder of such corporation who owns stock in such corporation on the last day in such year on which such corporation is a controlled foreign corporation shall include in its gross income, for the taxable year on which the corporation ends, its pro rata share of the corporations' earnings and profits for such year. Defines the pro rata share of the stockholder and the earnings and incomes of such corporations.

Provides that the earnings and profits of a foreign corporation attributable to amounts which are, or have been, included in the gross income of a United States shareholder shall not, when distributed to such shareholder or to a trust of which such shareholder is a beneficiary, be again included in the gross income of such United States shareholder or trust.

Provides that, under regulations prescribed by the Secretary of the Treasury or his delegate, the basis of a United States shareholder's stock in a controlled foreign corporation shall be increased by the amount required to be included in its gross income with respect to such stock, but only to the extent to which such amount was included in the gross income of such United States shareholder.

Authorizes the Secretary or his delegate to require by regulation that each person who is or has been a United States shareholder of a foreign corporation to maintain such records as may be prescribed.

Repeals the foreign tax credit allowed corporations. Requires the Treasury Department, by December 31, 1974, to submit to Congress a report on the administration of the income tax imposed by the Internal Revenue Code as it applies to business activities carried on outside the United States by United States corporations.

Title II: United States Foreign Trade and Investment Commission - Provides that the United States Foreign Trade and Investment Commission shall be composed of three commissioners to be appointed by the President with the consent of the Senate. Prescribes the qualifications for the Commissioners.

Title III: Quantitative Restraints on Imports - Limits the total quantity of each category of goods produced in a foreign country which may be entered during the calendar year 1974 to the average annual quantity determined by the Commission to have entered during the calendar years 1965 to 1969. Limits the total quantity of such goods which may be entered during any calendar year after 1974 to the total determined as above plus the increase estimated by the Commission to be necessary to make the total quantity of imports in each category bear the same relationship to United States production of goods in such category as existed during the period 1965-1969.

Authorizes the President to make bilateral or multilateral arrangements for regulating the quantity of articles produced in such foreign countries which may be imported into the United States.

Title IV: Amendments to the Antidumping and Countervailing Duty Acts - Provides that whenever a class or kind of foreign merchandise is being sold in the United States at less than its fair value and an industry in the United States is being hurt or prevented from being established by reason of the importation of such merchandise, there shall be levied in addition to other duties a special dumping duty in an amount equal to the difference between the purchase price or the exporter's sales price and the foreign market value. Authorizes an additional duty where any country pays a bounty for the production of any goods and those goods are then imported into the United States, the duty to be equal to the bounty.

Title V: Amendments to the Trade Expansion Act of 1962 - Adjustment Assistance - Provides for the presentation, consideration, and disposition of petitions for tariff adjustments.

Title VI: Foreign Investment and Technology Export Controls - Authorizes the President to prohibit any person within the jurisdiction of the United States from engaging in any transaction involving a direct or indirect transfer of capital to or within any foreign country or to any national thereof when in the judgment of the President the transfer would result in the net decrease in employment in the United States. Imposes a fine of not more than $100,000 and imprisonment of not more than one year for each violation.

Title VII: Other Foreign Trade Provisions - Requires the Export-Import Bank of Washington to submit to Congress semi-annually a complete report of its operations. Requires that all goods having foreign made components be clearly marked, indicating the origin of such foreign made components.