119 HR 4978 IH: Secure Trade Act
U.S. House of Representatives
2025-08-15
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the Secure Trade Act
. <enum>I</enum><header>Imposition of additional duties on imports of goods into the United States and exception to duty exemption for de minimis entries and modifications to entry regulations</header> <section id="H48607F1157F14EDDBAA4E2C3422D24F9" section-type="subsequent-section" display-inline="no-display-inline"><enum>101.</enum><header>Imposition of additional duties on imports of goods into the United States</header> <subsection id="HE569F3F17BBD457698C8C567ACB0D32D"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">There shall be imposed a duty on imports of any good into the United States in an amount equal to 10 percent ad valorem of the good for each calendar year beginning on or after the date of the enactment of this Act.</text></subsection>
<subsection id="HD7BE202B2DEF41628A18175498C7103C">
<enum>(b)</enum>
<header>Duties To be considered additional duties</header>
<text>The duty required by subsection (a) with respect to a good is in addition to any other duty imposed by law with respect to the good.</text>
</subsection>
<subsection id="H252C48779D48443DABD56D935C1F7BB0"><enum>(c)</enum><header>Waiver</header>
<paragraph id="H69350F666F554101A5386DE79F62979F"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to paragraph (2), the President may reduce the percentage requirement in subsection (a) (but not to zero) with respect to goods in any economic sector of the United States if the President determines that such reduction is in the national interest or national security interest of the United States.</text></paragraph> <paragraph id="H2DD75753EC0B49E6AD323DA163AB2E85"><enum>(2)</enum><header>Congressional consultation</header><text>The President shall consult with the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate prior to exercising the authority of paragraph (1) for purposes of determining whether the economic sector that is to be the subject of the reduction of the percentage requirement in subsection (a) is appropriate.</text></paragraph></subsection></section>
<enum>II</enum><header>Trade with China</header>
<section commented="no" display-inline="no-display-inline" id="H41E5F6356898489D87C9F94CC3665DD6"><enum>201.</enum><header>Modifications to rates of duty to address trade with the People's Republic of China</header>
<subsection id="H90F15E8061504EE28F282026881DD6F6"><enum>(a)</enum><header>Establishment of rates of duty with respect to articles of the People’s Republic of China</header>
<paragraph commented="no" display-inline="no-display-inline" id="H79D6C74A5FEB46699E41DE7B37F0E9D2"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The President, by proclamation, shall revise the Harmonized Tariff Schedule of the United States (in this Act referred to as the <quote>HTS</quote>) to include rates of duty applicable only with respect to articles of the People’s Republic of China.</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HAD629AEEF41E4DA38B113F916B3C1075"><enum>(2)</enum><header>Rates</header> <subparagraph id="H763EE0BC2FEF4624AC9EBC586CCE8379"><enum>(A)</enum><header>In general</header><text>The rates of duty proclaimed under paragraph (1) shall be, except as provided by subsection (h), the rates of duty set forth in the column 2 rate of duty column of the HTS on the day before the date of the enactment of this Act, modified as required by subsection (b) and, if applicable, adjusted for inflation under subsection (c).</text></subparagraph>
<subparagraph id="HE58AF479F1CF479E9B4DF1D03B70E039"><enum>(B)</enum><header>Minimum rate of duty for non-strategic goods</header><text display-inline="yes-display-inline">A rate of duty described in subparagraph (A) of an article that is not an article specified in section 203 that is less than 35 percent ad valorem as of the day before the date of the enactment of this Act shall be increased to 35 percent ad valorem.</text></subparagraph></paragraph></subsection> <subsection id="H9F0D33DAA9E74FFEB8C3EAB2D8A32EE8"><enum>(b)</enum><header>Modifications to rates of duty with respect to articles of the People’s Republic of China</header> <paragraph id="HF7C2C31F08CB423F8CA8FC8C7B346042"><enum>(1)</enum><header>Ad valorem duties and free rates of duty</header> <subparagraph commented="no" display-inline="no-display-inline" id="HBBD1254C1E8C4F1DA7423B845A93E421"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">A rate of duty set forth in the column 2 rate of duty column of the HTS that is expressed as a percentage, or that is free, shall, except as provided by subparagraph (B) or (C), continue to apply to articles of the People's Republic of China.</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HC36EE7CDE6F94FC59172A467362F1682"><enum>(B)</enum><header>Minimum rate of 100 percent for certain articles</header><text>In the case of an article specified in section 203, a rate of duty described in subparagraph (A) that is less than 100 percent ad valorem as of the day before the date of the enactment of this Act shall be increased to 100 percent ad valorem.</text></subparagraph></paragraph> <paragraph id="H18A8A96515B34148A4916E7A74470ED3"><enum>(2)</enum><header>Specific and compound rates of duty</header> <subparagraph commented="no" display-inline="no-display-inline" id="H4EE7D0CE7CCF44A4BE2BF9BAD842B258"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">A rate of duty set forth in the column 2 rate of duty column of the HTS that is expressed as a specific or compound rate of duty shall, except as provided by subparagraphs (B) and (C), continue to apply to articles of the People's Republic of China, subject to adjustment for inflation under subsection (c).</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="HD8E5C470A5D64BA6A9C67A2AA306C6B7"><enum>(B)</enum><header>Minimum rate equivalent to 100 percent ad valorem for certain articles</header><text display-inline="yes-display-inline">In the case of an article specified in section 203, a rate of duty described in subparagraph (A) that is less than the equivalent of 100 percent ad valorem, after adjustment for inflation under subsection (c), shall be increased to be equivalent to 100 percent ad valorem.</text></subparagraph></paragraph></subsection> <subsection id="HE4243AB67CC44FE29F59DF63C5DF2B09"><enum>(c)</enum><header>Adjustment of duties for inflation</header> <paragraph id="H922739EC3B644F96842F69D365075A0D"><enum>(1)</enum><header>In general</header><text>As soon as practicable after the date of the enactment of this Act, and on December 31 of each year thereafter, the President shall proclaim modifications to adjust the specific and compound rates of duty described in subsection (b)(2), as modified under that subsection, to reflect the increase in the average of the Consumer Price Index for the most recent full calendar year for which data are available compared to the Consumer Price Index for calendar year 1930.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H179F21A17E5A4787BCBD9A4A4746EB23"><enum>(2)</enum><header>Effective date of inflation adjustments</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H8EC933C947CD42A2923829475AD4A288"><enum>(A)</enum><header>First adjustment</header>
<clause commented="no" display-inline="no-display-inline" id="H617DBC1DCBC64EC9B0549DF9CBFF996B"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The first adjustment required by paragraph (1) shall apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after January 1, 2025.</text></clause> <clause commented="no" display-inline="no-display-inline" id="H24F135901DB7448385CDFE10AAC015E4"><enum>(ii)</enum><header>Rules for retroactive collection</header><text display-inline="yes-display-inline">Not later than 180 days after the date of the enactment of this Act, the Commissioner of U.S. Customs and Border Protection shall issue rules for the retroactive collection of duties under clause (i).</text></clause></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H8331F868E36241E289402A84B84D2042"><enum>(B)</enum><header>Subsequent adjustments</header><text display-inline="yes-display-inline">Each adjustment required by paragraph (1) after the first such adjustment shall apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after January 1 of the year beginning after the issuance of the proclamation.</text></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H1A23D03363A1424EB78C0B34F4E01771"><enum>(3)</enum><header>Base rate</header><text display-inline="yes-display-inline">For purposes of the adjustment required by paragraph (1), the President shall use the rate of duty applicable under the column 2 general rate of duty column of the HTS, as modified under subsection (b), as the base rate.</text></paragraph>
<paragraph id="HCAE0FC6DAADA40398B587ED6D81EF89D"><enum>(4)</enum><header>Consumer Price Index defined</header><text>For purposes of this subsection, the term <term>Consumer Price Index</term> means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.</text></paragraph></subsection> <subsection id="H389BEBA1B2A34CB1AC2E16C816466EA7"><enum>(d)</enum><header>Phase-In of duty increases</header><text>The President shall, by proclamation, phase-in the application of the duty increases required by subsection (a), as modified under subsection (b) and, if applicable, adjusted for inflation under subsection (c), as follows:</text>
<paragraph id="HDC79B5C050354E6FBE8BF82AFBC524E3"><enum>(1)</enum><text>On and after the date that is 180 days after the date of the enactment of this Act, 10 percent of the total duty increase with respect to an article shall apply.</text></paragraph> <paragraph id="H536D626761204047B00986F1133680A6"><enum>(2)</enum><text>On and after the date that is 2 years after such date of enactment, 25 percent of the total duty increase with respect to an article shall apply.</text></paragraph>
<paragraph id="H4901658105264743BC3AC8A96F4D5FDD"><enum>(3)</enum><text>On and after the date that is 4 years after such date of enactment, 50 percent of the total duty increase with respect to an article shall apply.</text></paragraph> <paragraph id="H5D7DAE42DD9E4C849376323C89DD7209"><enum>(4)</enum><text>On and after the date that is 5 years after such date of enactment, 100 percent of the total duty increase with respect to an article shall apply.</text></paragraph></subsection>
<subsection id="H54EFEF66FC374F309AA57196313C4C3B" commented="no"><enum>(e)</enum><header>Information from International Trade Commission</header>
<paragraph id="H133072D112BD47BE9A5B577A095CBCD6"><enum>(1)</enum><header>In general</header><text>Not later than July 1 of each year, the United States International Trade Commission (in this Act referred to as the <quote>Commission</quote>) shall submit to the President the information described in paragraph (2) with respect to articles that are subject to a specific or compound rate of duty under the column 2 rate of duty column of the HTS and for which sufficient data are available to calculate the ad valorem equivalent of those rates of duty.</text> </paragraph> <paragraph id="H6FF08BCAA7CE4A71BBC5022E6FA9E122" commented="no"><enum>(2)</enum><header>Information described</header><text>The information described in this paragraph is an identification of which articles specified in section 203 have an ad valorem equivalent rate of duty of less than 100 percent after adjustment for inflation under subsection (c) and, for each such article, a calculation of the specific or compound rate of duty that would increase the rate of duty to be equivalent to 100 percent ad valorem.</text></paragraph></subsection>
<subsection id="HC82A7E50D8CA411DAEC18B761FFF9E0D"><enum>(f)</enum><header>Treatment of articles imported only from the People’s Republic of China</header>
<paragraph id="HA9E3CA7E16664926A15C71C8DE65DD6B"><enum>(1)</enum><header>Tariff-rate quotas</header>
<subparagraph id="HC61C9D6CBFB6468EAABB8E639E38DF4A"><enum>(A)</enum><header>Annual adjustments</header>
<clause commented="no" display-inline="no-display-inline" id="HB4ED632FED6F4FF8BEB5D8F8338A12AE"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, the President shall, by proclamation, establish a tariff-rate quota that shall—</text> <subclause id="H04BD15E42C7340028E171133ACF926D5"><enum>(I)</enum><text>apply to each article imported only from the People's Republic of China; and</text></subclause>
<subclause id="H831D04A38A084B75ADC80F5CF8C5667C"><enum>(II)</enum><text>be set for each calendar year at an amount that is equal to the amount, if any, by which consumption of the article in the United States in the most recent calendar year for which data are available exceeds production of the article in the United States during that calendar year.</text></subclause></clause> <clause id="H3CB21150F98F40B0BFF26A7BA9CE6481"><enum>(ii)</enum><header>Determination of the People's Republic of China as only source</header><text>For purposes of subparagraph (A)(i)(I), the President shall determine that an article is imported only from the People's Republic of China if official trade statistics of the Department of Commerce for the most recent full calendar year for which data are available for the applicable subheading of any of chapters 1 through 97 of the HTS, as reported on entry summary forms, show that the article is imported only from the People's Republic of China and from no other country.</text></clause></subparagraph>
<subparagraph id="H33AFA0AF289D48D184B7F31871FBD88A"><enum>(B)</enum><header>Entry of in-quota articles</header><text>Notwithstanding any other provision of this section, an article described in subparagraph (A)(i)(I) that is entered before the applicable tariff-rate quota is reached for the calendar year in which the article is entered shall—</text> <clause id="H757D88950FE14C299470271A0D28764D"><enum>(i)</enum><text>during the 3-year period beginning on the date of the enactment of this Act, be subject to the rate of duty applicable to the article on the day before such date of enactment; and</text></clause>
<clause id="H85B4DE3052F3499CB8D48AF40602DF3C"><enum>(ii)</enum><text>after the period described in clause (i), be subject to the rate of duty applicable under subsection (a), as modified under subsection (b) and as phased-in under paragraph (2).</text></clause></subparagraph> <subparagraph id="HD6C25EADCE044DDEACE17E10D233774C"><enum>(C)</enum><header>Entry of above-quota articles</header><text>Notwithstanding any other provision of this section, an article described in subparagraph (A)(i)(I) that is entered after the tariff-rate quota is reached for the calendar year in which the article is entered shall be subject to a rate of duty of 100 percent ad valorem.</text></subparagraph></paragraph>
<paragraph id="H8940E72CDA6B4C05AC1FE6C204AC3EDF"><enum>(2)</enum><header>Phase-in of duty increases</header><text>Beginning on the date that is 3 years after the date of the enactment of this Act, the President may, by proclamation, phase-in the application of the duty increases required by paragraph (1)(B) with respect to each article described in paragraph (1)(A)(i)(I) and entered before the applicable tariff-rate quota under paragraph (1) is reached for the calendar year in which the article is entered, as follows:</text> <subparagraph id="H382E7BD2E72C46E38E5C3CC86C5738B9"><enum>(A)</enum><text>On and after the date that is 3 years after the date of the enactment of this Act, 10 percent of the total duty increase required by paragraph (1)(B) with respect to the article shall apply.</text></subparagraph>
<subparagraph id="HB28072BA2EFE4B03A1BDA754568D8300"><enum>(B)</enum><text>On and after the date that is 5 years after such date of enactment, 25 percent of the total duty increase required by paragraph (1)(B) with respect to the article shall apply.</text></subparagraph> <subparagraph id="H09BD9F72EF3442C38420AB77328FC8AC"><enum>(C)</enum><text>On and after the date that is 6 years after such date of enactment, 50 percent of the total duty increase required by paragraph (1)(B) with respect to the article shall apply.</text></subparagraph>
<subparagraph id="HD516048C25F442F390A49FE5BD08DFBC"><enum>(D)</enum><text>On and after the date that is 7 years after such date of enactment, 100 percent of the total duty increase required by paragraph (1)(B) with respect to the article shall apply.</text></subparagraph></paragraph> <paragraph id="H1A2DBD4C07C2419BBF1BDB97AFF8E043"><enum>(3)</enum><header>Information from International Trade Commission</header><text>Not later than July 1 of each year, the Commission shall submit to the President an estimate of the production and consumption in the United States of articles described in paragraph (1)(A)(i)(I) for which sufficient data are available to make such an estimate.</text></paragraph></subsection>
<subsection id="H7EB8C79B46BE4B96AAEC56A1C374363C"><enum>(g)</enum><header>Authority To further modify duties specific to the People’s Republic of China</header>
<paragraph id="H098B6F603C7F485EBE2637D889ABC2C1"><enum>(1)</enum><header>In general</header><text>The President, by proclamation, may increase the rates of duty applicable to articles of the People’s Republic of China to rates that are higher than the rates of duty described in subsection (a) and modified as required by subsection (b) if the President determines doing so is necessary to counteract the dependence of the United States on imports from the People's Republic of China or to penalize the People's Republic of China for unfair trading practices.</text></paragraph> <paragraph id="H6BBD9F7069C74153B2446BC8006051BF"><enum>(2)</enum><header>Phase-in</header><text>If the President proclaims an increase in a rate of duty under paragraph (1), the President shall provide for the increase to be phased-in over a period of 5 years on a schedule equivalent to the schedule set forth in subsection (d).</text></paragraph>
<paragraph id="H79C9C639923F4E4BB3F1D7AEDA925AF5" commented="no"><enum>(3)</enum><header>Report</header><text display-inline="yes-display-inline">The President may, for one or more periods of not more than 60 days each, waive the application of this subsection with respect to articles described in paragraph (1) if the President certifies Congress, not later than 15 days before such waiver takes effect, that the waiver is vital to the national security interests of the United States.</text></paragraph> </subsection> <subsection id="H3745B9F222B641E5A084C121D1BD6917"><enum>(h)</enum><header>Additional authorities</header> <paragraph id="H737E82775A334DD6B6F4E72DA4E7F0BF"><enum>(1)</enum><header>Authority to impose quotas to decrease reliance on Chinese imports</header><text>The President may establish quotas for the progressive elimination of reliance on any articles imported from the People’s Republic of China.</text></paragraph>
<paragraph id="HE2C9798687E84863A82E8D535250042D"><enum>(2)</enum><header>Authority to prohibit imports</header>
<subparagraph id="HE1BF3D4AB0744A8FA02BFF2280D3A2F8"><enum>(A)</enum><header>In general</header><text>The President may prohibit the importation of any article from the People’s Republic of China if the President determines that—</text> <clause id="H9B6BF3516252496CB9EC4ECD2CA37693"><enum>(i)</enum><text>the importation of the article poses a threat to the national security of the United States; or</text></clause>
<clause id="H754CDB14A185426EB6C79C067F904B47"><enum>(ii)</enum><text>the article is produced in a manner that—</text> <subclause id="H9DF6866DDC9E45E7B77C96CF36B326AB"><enum>(I)</enum><text>constitutes an unfair trade practice; or</text></subclause>
<subclause id="H150C1970EB134A86A0B2BACCE7CE948A"><enum>(II)</enum><text>violates human rights.</text></subclause></clause></subparagraph> <subparagraph id="HBBD6426B9D754E6E8977EF39851D7A9E"><enum>(B)</enum><header>Regulations</header><text>The President shall prescribe such regulations as may be necessary for the enforcement of this paragraph.</text></subparagraph></paragraph>
<paragraph commented="no" id="H31D768429FBA442C8C93B9A388EA4D94"><enum>(3)</enum><header>Additional authority</header><text>In addition to the other authorities provided by this section, the President may proclaim such modifications to the HTS as the President determines appropriate to achieve the objectives of this Act, including with respect to the manner of reflecting any modifications in the HTS.</text></paragraph></subsection></section> <section commented="no" id="H3610E3DA45D847F1B1C22913163D823F"><enum>202.</enum><header>Valuation of merchandise imported from the People's Republic of China</header><text display-inline="no-display-inline">Subpart A of part I of title IV of the Tariff Act of 1930 (<external-xref legal-doc="usc" parsable-cite="usc/19/1401">19 U.S.C. 1401 et seq.</external-xref>) is amended by adding at the end the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H8BA5A9F442164361ACFA05EB0EC9154C">
<section id="HD655D05CFBB045DC9FF45B4A4C8D69F3"><enum>403.</enum><header>Valuation of merchandise imported from the People's Republic of China</header>
<subsection commented="no" id="HA4BAC892FA1C4DA6A578C02480881B86"><enum>(a)</enum><header>In general</header><text>Notwithstanding any other provision of law, merchandise imported from the People's Republic of China shall be appraised on the basis of the United States value of the merchandise.</text></subsection> <subsection commented="no" display-inline="no-display-inline" id="H627062A0BE0E489DA9C67F680087E566"><enum>(b)</enum><header>Verification of United States value</header> <paragraph commented="no" display-inline="no-display-inline" id="H5144213B2A824A949552820C8418E533"><enum>(1)</enum><header>Submission by importers</header><text display-inline="yes-display-inline">An importer of merchandise described in subsection (a) shall submit to U.S. Customs and Border Protection, upon entry of the merchandise, a statement of the United States value of the merchandise.</text></paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H7ADC27FDCAE14EBB9E778829E80033DC"><enum>(2)</enum><header>Verification by U.S. Customs and Border Protection</header><text>U.S. Customs and Border Protection shall—</text> <subparagraph commented="no" display-inline="no-display-inline" id="H8068BB1B1055441B8143C7615D3F9AC4"><enum>(A)</enum><text display-inline="yes-display-inline">verify the information with respect to the United States value of merchandise submitted by an importer under paragraph (1); and</text></subparagraph>
<subparagraph commented="no" display-inline="no-display-inline" id="H48B6A0B5DCE34F4898181DCBCDD24F71"><enum>(B)</enum><text display-inline="yes-display-inline">submit to the United States International Trade Commission—</text> <clause commented="no" display-inline="no-display-inline" id="H980CE8DF7FE548448F597407E93BDA0C"><enum>(i)</enum><text display-inline="yes-display-inline">a determination of whether or not the value submitted by the importer is accurate; and</text></clause>
<clause commented="no" display-inline="no-display-inline" id="HE2712388D57F45C899A29D3081D8EFF6"><enum>(ii)</enum><text>if that value is not accurate, a revised value for the merchandise.</text></clause></subparagraph></paragraph></subsection> <subsection commented="no" id="H5178B26C3A1B45F19195E5D6639EDBD2"><enum>(c)</enum><header>United States value defined</header><text>In this section, the term <term>United States value</term>, with respect to imported merchandise, means the price at which the imported merchandise or similar imported merchandise is freely offered for sale, packed ready for delivery, in the principal market of the United States to all purchasers, at the time of importation of the imported merchandise.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="H910A4EA5DA984324A6CF2A3AE76AACFF" commented="no"><enum>203.</enum><header>Articles specified</header><text display-inline="no-display-inline">The articles specified in this section are articles that—</text> <paragraph id="H3663D47AA87B4C66AD7877908918CB4B"><enum>(1)</enum><text>on the day before the date of the enactment of this Act, are—</text>
<subparagraph id="HA40387F2F58E45259B03C8ADD05E2582" commented="no"><enum>(A)</enum><text>identified on the Department of Commerce’s Draft List of Critical Supply Chains pursuant to Executive Order 14017 (February 24, 2021);</text></subparagraph> <subparagraph id="H7D71C62431A74EBCA18534241F278D16" commented="no"><enum>(B)</enum><text>subject to an investigation under section 301 of the Trade Act of 1971 (<external-xref legal-doc="usc" parsable-cite="usc/19/2411">19 U.S.C. 2411</external-xref>); or</text></subparagraph>
<subparagraph id="H58D59C165BEC4E1395FFDA6668723895" commented="no"><enum>(C)</enum><text>subject to an investigation under section 232 of the Trade Expansion Act of 1962 (<external-xref legal-doc="usc" parsable-cite="usc/19/1862">19 U.S.C. 1862</external-xref>); or</text></subparagraph></paragraph> <paragraph id="H854D9350DAC74753A9B1941D4B2DF56C"><enum>(2)</enum><text>subject to the discretion of the Secretary of Commerce, are dual-use items (as such terms are defined in section 1742 of the Export Control Reform Act of 2018 (<external-xref legal-doc="usc" parsable-cite="usc/50/4801">50 U.S.C. 4801</external-xref>)).</text> </paragraph> </section>
<section section-type="subsequent-section" id="HB4B47E3CB1754023A1DC452E4DD2C2F5"> <enum>204.</enum> <header>Review by Committee on Foreign Investment in the United States of greenfield and brownfield investments by foreign countries of concern</header>
<subsection id="H65A7FB28872D4B188308F799704D3BEC"> <enum>(a)</enum> <header>Inclusion in definition of covered transaction</header> <text>Section 721(a)(4) of the Defense Production Act of 1950 (<external-xref legal-doc="usc" parsable-cite="usc/50/4565">50 U.S.C. 4565(a)(4)</external-xref>) is amended—</text> <paragraph id="HA136002053C641BA8307ED1CDE5448C0"> <enum>(1)</enum> <text>in subparagraph (A)—</text>
<subparagraph id="HF0732F14E8254032BF5243F0BBBB0BDE"> <enum>(A)</enum> <text>in clause (i), by striking <quote>; and</quote> and inserting a semicolon;</text> </subparagraph> <subparagraph id="H9C7A665720944E64850AD74B1A4DDE2A"> <enum>(B)</enum> <text>in clause (ii), by striking the period at the end and inserting <quote>; and</quote>; and</text> </subparagraph>
<subparagraph id="H7B07E44BDBE046A5A9234C350602B93C"> <enum>(C)</enum> <text>by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="HF741A08BE55D433488B5401C2646F6F4"> <clause id="HFE0FB16400FB462CACABD94180B13426"> <enum>(iii)</enum> <text>any transaction described in subparagraph (B)(vi) proposed or pending on or after the date of the enactment of this clause.</text> </clause> <after-quoted-block>; </after-quoted-block> </quoted-block> </subparagraph> </paragraph>
<paragraph id="HDA2F90533CBA48CA9D3CF2FB0CFD6D83"> <enum>(2)</enum> <text>in subparagraph (B), by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H06DF95EACEAA49CAAAC168D062DEDD60"> <clause id="H6F62B242272844E6989B71D60F81918F"> <enum>(vi)</enum> <text>Subject to subparagraphs (C) and (E), an investment by a foreign person that—</text>
<subclause id="HE485AA7F0A9E42B6B169B8BE772A342F"> <enum>(I)</enum> <text>involves—</text> <item id="H0FA0A80BE67A46C8BE5E569452A8A4DC"> <enum>(aa)</enum> <text> the completed or planned purchase or lease by, or a concession to, the foreign person of private or public real estate in the United States; and</text> </item>
<item id="H258FE63DEB7F4FB9B135B5B2102F37C3"> <enum>(bb)</enum> <text>the establishment of a United States business to operate a factory or other facility on that real estate; and</text> </item> </subclause> <subclause id="H4EFA8195CA524174912459F5837FEFC6"> <enum>(II)</enum> <text>could result in control, including through formal or informal arrangements to act in concert, of that United States business by—</text>
<item id="H41ED80E885644C99B265520DE2136F8B"> <enum>(aa)</enum> <text>the government of a foreign country of concern (as defined in section 10612(a) of the Research and Development, Competition, and Innovation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/19221">42 U.S.C. 19221(a)</external-xref>)); </text> </item> <item id="H9B3BDD0634C0450F8317564174417BEE"> <enum>(bb)</enum> <text>a person owned or controlled by, or acting on behalf of, such a government;</text> </item>
<item id="H7777B0CBA108438AB22D427A9C90DEFC"> <enum>(cc)</enum> <text>an entity in which such a government has, directly or indirectly, including through formal or informal arrangements to act in concert, a 5 percent or greater interest;</text> </item> <item id="H52F73DCD0E8E4B8B9A0BADEAFF630DF5"> <enum>(dd)</enum> <text>an entity in which such a government has, directly or indirectly, the right or power to appoint, or approve the appointment of, any members of the board of directors, board of supervisors, or an equivalent governing body (including external directors and other individuals who perform the duties usually associated with such titles) or officers (including the president, senior vice president, executive vice president, and other individuals who perform duties normally associated with such titles) of any other entity that held, directly or indirectly, including through formal or informal arrangements to act in concert, a 5 percent or greater interest in the entity in the preceding 3 years; or </text> </item>
<item id="HF28E11500DB244BCA70C2A67A3CE1096"> <enum>(ee)</enum> <text>an entity in which any members or officers described in item (dd) of any other entity holding, directly or indirectly, including through formal or informal arrangements to act in concert, a 5 percent or greater interest in the entity are officials of such a government in the preceding 3 years.</text> </item> </subclause> </clause> <after-quoted-block>; </after-quoted-block> </quoted-block> </paragraph> <paragraph id="H826866FA638D4A2D8DC1EA84E6C1ACE9"> <enum>(3)</enum> <text>in subparagraph (C)(i), in the matter preceding subclause (I), by striking <quote>subparagraph (B)(ii)</quote> and inserting <quote>clause (ii) or (vi) of subparagraph (B)</quote>; and</text> </paragraph>
<paragraph commented="no" display-inline="no-display-inline" id="H7E08BDB93887459B966396D06608D407"> <enum>(4)</enum> <text>in subparagraph (E), by striking <quote>clauses (ii) and (iii)</quote> and inserting <quote>clauses (ii), (iii), and (vi)</quote>.</text> </paragraph> </subsection> <subsection id="H8F72F930A51D4FD0B7767DA186D2340C"> <enum>(b)</enum> <header>Mandatory filing of declarations</header> <text>Section 721(b)(1)(C)(v)(IV)(bb) of the Defense Production Act of 1950 (50 U.S.C. 4565(b)(1)(C)(v)(IV)(bb)) is amended by adding at the end the following:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="H3624793224FB498D884D136B8EC384ED">
<subitem id="H12E313FEC6F447BFB85EFF154A2B8E81"> <enum>(DD)</enum> <header>Greenfield and brownfield investments by foreign countries of concern</header> <text>The parties to a covered transaction described in subsection (a)(4)(B)(vi) shall submit a declaration described in subclause (I) with respect to the transaction.</text> </subitem> <after-quoted-block>.</after-quoted-block> </quoted-block> </subsection> </section>