Summary: S.734 — 97th Congress (1981-1982)All Information (Except Text)

Bill summaries are authored by CRS.

Shown Here:
Conference report filed in Senate (10/01/1982)

(Conference report filed in Senate, S. Rept. 97-644)

Title I: General Provisions - Export Trading Company Act of 1982 - Establishes within the Department of Commerce an office to: (1) promote the formation of export trade associations and export trading companies; (2) provide information; and (3) facilitate contacts between producers of exportable goods and firms offering export trade services.

Title II: Bank Export Services - Bank Export Services Act - Declares that it is the purpose of this title to provide for participation by bank holding companies, bankers' banks, and Edge Act corporations in the financing and development of export trading companies. Expresses the intent of Congress that the Federal Reserve Board should pursue regulatory policies that: (1) provide for the establishment of competitive export trading companies; (2) provide U.S. commerce, industry, and agriculture a means of exporting at all times; (3) foster the participation by regional and smaller banks in the development of export trading companies; and (4) facilitate the formation of joint venture export trading companies.

Amends the Bank Holding Company Act of 1956 to permit bank holding companies to invest in shares of any export trading company whose acquisition or formation by a bank holding company has not been disapproved by the Federal Reserve Board. Limits the investments in such shares to not more than five percent of the bank holding company's consolidated capital and surplus.

Establishes a procedure for the review of proposed investments in export trading companies.

Prohibits the total amount of extensions of credit to an export trading company by a bank holding company which invests in an export trading company, when combined with all such extensions of credit by all the subsidiaries of such holding company, from exceeding ten percent of the holding company's consolidated capital and surplus.

Prohibits any investing bank holding company or any of its subsidiaries from extending credit to an export trading company on terms more favorable than those afforded to other borrowers.

Permits an export trading company, for the purposes of this title, to engage in or hold shares of a company engaged in the business of underwriting, selling, or distributing securities within the United States only to the extent that any bank holding company which invests in such export trading company may do so under applicable Federal and State banking laws and regulations.

Prohibits an export trading company from engaging in agricultural production activities or in manufacturing except for incidental product modification necessary to conform goods or services to foreign country requirements and to facilitate their sale in foreign countries.

Permits the Federal Reserve Board to require a bank holding company which invests in an export trading company to terminate its investment or be made subject to limitations or conditions, whenever the export trading company takes unnecessary positions in commodities or commodities contracts, in securities, or in foreign exchange.

Permits Edge Act corporations which are subsidiaries of bank holding companies or agreement corporations which are subsidiaries of bank holding companies to invest, to a limited extent, in export trading companies.

Requires the Federal Reserve Board to report to specified congressional committees within two years of enactment of this Act on: (1) the implementation of the banking provisions; (2) legislative changes needed to facilitate the financing of U.S. exports; and (3) recommendations on the effects of the ownership of U.S. banks by foreign banking organizations affiliated with trading companies doing business in the United States.

Directs the Export-Import Bank of the United States to provide loan guarantees for expansion to export trading companies or exporters when adequate financing is not otherwise available. Requires such loan guarantees to be secured by accounts receivable or inventories. Directs the Board of Directors to try to insure that a major share of such guarantees promotes exports from small, medium-size, and minority businesses or agricultural concerns.

Raises the ceiling on the aggregate amount of not-fully-secured acceptances which a member bank and any Federal or State branch or agency of a foreign bank can create with respect to the importation, exportation, or domestic shipment of goods.

Increases such limitation from one-half to 150 percent of the capital stock or, with the Federal Reserve Board's permission, twice the amount of the capital stock.

Limits the aggregate acceptances growing out of domestic transactions to not more than 50 percent of the aggregate of all acceptances.

States that such limitations do not apply to any acceptance which is issued by an institution and which is covered by a participation agreement from other banks or regulated corporations, except to the extent that the issuing bank retains or purchases such acceptance.

Defines the capital of a U.S. branch or agency of a foreign bank to be the dollar equivalent of the paid-up capital stock and surplus of the foreign bank, as determined by the Board.

Title III: Export Trade Certificates of Review - Authorizes the Secretary of Commerce, in order to encourage export trade, to issue certificates of review and to assist persons applying for such certificates.

Requires a person requesting a certificate to submit to the Secretary an application which specifies conduct limited to export trade and which is in the proper form. Provides for notice of the application to be published in the Federal Register.

Directs the Secretary to issue a certificate within 90 days of receipt of the application if the Secretary, with the concurrence of the Attorney General, finds that the applicant's activities will: (1) not substantially lessen competition, or restrain trade within the United States, or substantially restrain the export trade of a competitor; (2) not unreasonably affect prices within the United States of the things exported by the applicant; (3) not constitute unfair methods of competition against exporting competitors; and (4) not include any act that may reasonably be expected to result in the sale within the United States of the things exported by the applicant.

Requires the certificate to specify: (1) the export trade, export trade activities, and methods of operation to which the certificate applies; (2) the person to whom the certificate is issued; and (3) any conditions necessary to assure compliance with the standards for issuance.

Permits an expedited application procedure. Requires the Secretary to explain a denial of an application. Permits an applicant to request the Secretary to reconsider a denied application. Provides for returning all application documents if an application is denied. Declares that certificates obtained by fraud are void.

Requires applicants who receive certificates to report to the Secretary any changes related to the matters specified in the certificate. Authorizes such an applicant to submit an application to amend the certificate.

Directs the Secretary to request additional information from a certificate holder if the Secretary or the Attorney General has reason to believe that the export trade, export trade activities, or methods of operation of such person no longer comply with the certificate standards. Makes failure to comply with such request grounds for revoking the certificate. Sets forth the procedure for revoking a certificate.

Provides for judicial review of the granting, denial, revocation, or modification of a certificate of review.

Prohibits a criminal or civil antitrust suit which is based on conduct specified in and complying with a certificate of review. Exempts from such prohibition civil suits for failure to comply with the standards necessary for issuance of the certificate. Requires the court to award the defendant in such a suit the cost of defending against the claim, if the court finds that the conduct does comply with the certificate's standards. Authorizes the Attorney General, notwithstanding the general prohibition, to sue under the Clayton Act to enjoin conduct threatening clear and irreparable harm to the national interest.

Authorizes the Secretary to issue guidelines: (1) describing types of conduct with respect to which the Secretary, with the concurrence of the Attorney General, has made or would make determinations on the issuance, amendment, or revocation of a certificate; and (2) summarizing the bases for the determinations. Exempts the guidelines from certain requirements of the Administrative Procedures Act.

Requires every person to whom a certificate is issued to update annually the information provided on the application for issuance of the certificate.

Exempts from disclosure under the Freedom of Information Act any information submitted by a person in connection with a certificate of review. Prohibits any Federal employee from disclosing commercial or financial information submitted in connection with a certificate of review, if the information is privileged or confidential and if disclosure of the information would harm the person who submitted the information. Lists specific exemptions to such prohibition.

Title IV: Foreign Trade Antitrust Improvements - Foreign Trade Antitrust Improvements Act of 1982 - Amends the Sherman Act to provide that such Act shall not apply to conduct involving trade or commerce with foreign nations, other than import transactions, unless such conduct has a direct, substantial, and reasonably foreseeable effect on domestic or import commerce or on the export business of a domestic person.

Amends the Federal Trade Commission Act to provide that such Act shall not prohibit unfair methods of competition involving commerce, other than import commerce, with foreign nations unless such methods have a direct, substantial, and reasonably foreseeable effect on domestic or import commerce or on the export commerce of a domestic person.