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(1) the chemical or product was not valued for customs purposes on the basis of American selling price upon entry into the United States during a period determined by the Comission to be representative, and

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(2) a rate of duty provided for in such subparts, other than the rate of duty that would apply but for this section, is more appropriate and representative for

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such chemical or product.

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TITLE III-GOVERNMENT PROCUREMENT

10 SEC. 301. GENERAL AUTHORITY TO MODIFY DISCRIMINATORY

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PURCHASING REQUIREMENTS.

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(a) PRESIDENTIAL WAIVER OF DISCRIMINATORY PUR13 CHASING REQUIREMENTS.-The President may waive, in 14 whole or in part, with respect to eligible products of any 15 foreign country or instrumentality designated under subsec16 tion (b), and suppliers of such products, the application of any 17 law, regulation, procedure, or practice regarding Government 18 procurement that would, if applied to such products and sup19 pliers, result in treatment less favorable than that accorded

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(1) to United States products and suppliers of such products; or

(2) to eligible products of another foreign country

or instrumentality which is a party to the Agreement

and suppliers of such products.

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(b) DESIGNATION OF ELIGIBLE COUNTRIES AND IN

2 STRUMENTALITIES.-The President may designate a foreign 3 country or instrumentality for purposes of subsection (a) only 4 if he determines that such country or instrumentality—

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(1) is a country or instrumentality which (A) has become a party to the Agreement, and (B) will provide appropriate reciprocal competitive government procurement opportunities to United States products and suppliers of such products;

(2) is a country or instrumentality, other than a major industrial country, which (A) will otherwise assume the obligations of the Agreement, and (B) will provide such opportunities to such products and suppliers;

(3) is a country or instrumentality, other than a major industrial country, which will provide such opportunities to such products and suppliers; or

(4) is a least developed country.

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(c) MODIFICATION OR WITHDRAWAL OF WAIVERS 20 AND DESIGNATIONS.-The President may modify or with21 draw any waiver granted pursuant to subsection (a) or desig22 nation made pursuant to subsection (b).

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1 SEC. 302. AUTHORITY TO ENCOURAGE RECIPROCAL COMPETI

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TIVE PROCUREMENT PRACTICES.

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(a) AUTHORITY TO BAR PROCUREMENT FROM NON4 DESIGNATED COUNTRIES.-With respect to procurement 5 covered by the Agreement, the President, in order to encour6 age additional countries to become parties to the Agreement 7 and to provide appropriate reciprocal competitive government 8 procurement opportunities to United States products and 9 suppliers of such products

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(1) shall prohibit the procurement, after the date

on which any waiver under section 301(a) first takes effect, of products (A) which are products of a foreign country or instrumentality which is not designated pursuant to section 301 (b), and (B) which would otherwise

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be eligible products; and

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(2) may take such other actions within his authority as he deems necessary.

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(b) DEFERRALS AND WAIVERS.-Notwithstanding sub19 section (a), but in furtherance of the objective of encouraging 20 countries to become parties to the Agreement and provide 21 appropriate reciprocal competitive government procurement 22 opportunities to United States products and suppliers of such 23 products, the President may—

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(1) delay, for a period not to exceed two years, the prohibition of procurement, required pursuant to subsection (a)(1), of products of a foreign country or in

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strumentality which is not designated pursuant to section 301(b), except that no such delay shall be granted

with respect to the procurement of products of any

major industrial country;

(2) authorize agency heads to waive, subject to interagency review and general policy guidance by the organization established under section 242(a) of the Trade Expansion Act of 1962 (19 U.S.C. 1872(a)), such prohibition on a case-by-case basis when in the national interest; and

(3) authorize the Secretary of Defense to waive, subject to interagency review and policy guidance by the organization established under section 242 (a) of the Trade Expansion Act of 1962 (19 U.S.C. 1872(a)), such prohibition for products of any country or instrumentality which enters into a reciprocal procurement agreement with the Department of Defense. (c) REPORT ON IMPACT OF RESTRICTIONS.

(1) IMPACT ON THE ECONOMY.-On or before July 1, 1981, the President shall report to the Committee on Ways and Means and the Committee on Government Operations of the House of Representatives and to the Committee on Finance and the Committee on Governmental Affairs of the Senate on the effects on the United States economy (including effects

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on employment, production, competition, costs and prices, technological development, export trade, balance of payments, inflation, and the Federal budget) of the refusal of developed countries to allow the Agree

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5 ment to cover the entities of the governments of such

countries which are the principal purchasers of goods and equipment in appropriate product sectors.

(2) RECOMMENDATIONS FOR ATTAINING RECIPROCITY.-The report required by paragraph (1) shall include an evaluation of alternative means to obtain

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equity and reciprocity in such product sectors, including (A) prohibiting the procurement of products of such countries by United States entities not covered by the Agreement, and (B) modifying the application of title III of the Act of March 3, 1933 (41 U.S.C. 10a et seq.), commonly referred to as the Buy American Act. The report shall include an analysis of the effect of such alternative means on the United States economy (including effects on employment, production, competition, costs and prices, technological development, export trade, balance of payments, inflation, and the Federal budget), and on successful negotiations on the expansion of the coverage of the Agreement pursuant to section 304 (a) and (b), other trade negotiating objectives, the relationship of the Federal Government to