GOVERNMENTAL IMPORTATIONS.

SEC 1335. GOVERNMENTAL IMPORTATIONS. Section 771 of the Tariff Act of 1930 (19 U.S.C. 1677) (as amended by section 1316(b)) is amended by adding at the end thereof the following new paragraph: “(19) Application to governmental importations.— “(A) In general.— Except as otherwise provided by this paragraph, merchandise imported by, or for the use of, a department or agency of the United States Government (including merchandise provided for under schedule 8 of the Tariff Schedules of the United States) is subject to the imposition of countervailing duties or antidumping duties under this title or section 303. “(B) Exceptions.— Merchandise imported by, or for the use of, the Department of Defense shall not be subject to the imposition of countervailing or antidumping duties under this title if— “(i) the merchandise is acquired by, or for use of, such Department— “(I) from a country with which such Department had a Memorandum of Understanding which was in effect on January 1, 1988, and has continued to have a comparable agreement (including renewals) or superceding agreements, and “(II) in accordance with terms of the Memorandum of Understanding in effect at the time of importation, or “(ii) the merchandise has no substantial nonmilitary use.”