[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1402 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 1402

  To amend the Tariff Act of 1930 to provide effective trade remedies 
  under the countervailing and antidumping duty laws against foreign-
built ships that are subsidized or dumped and to provide otherwise for 
   fair trade for the United States shipbuilding and repair industry.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 18, 1993

 Mr. Gibbons (for himself, Mr. Studds, Mr. Lipinski, Mr. Bateman, Mr. 
    Cardin, Mr. Payne of Virginia, Mr. Kopetski, Mr. Jefferson, Mr. 
  Pickett, Mr. Andrews of Maine, Mr. Gene Green of Texas, Mr. Tauzin, 
  Mrs. Bentley, Mr. Murphy, Mr. Filner, Mrs. Thurman, Ms. Snowe, Mr. 
  Hunter, Mr. Murtha, Mr. Reed, Mr. Livingston, Mr. Goodling, and Mr. 
 Torricelli) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Tariff Act of 1930 to provide effective trade remedies 
  under the countervailing and antidumping duty laws against foreign-
built ships that are subsidized or dumped and to provide otherwise for 
   fair trade for the United States shipbuilding and repair industry.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

TITLE I--TREATMENT OF VESSELS UNDER THE COUNTERVAILING AND ANTIDUMPING 
                               DUTY LAWS

SEC. 101. AMENDMENT TO TITLE VII OF THE TARIFF ACT OF 1930.

    (a) In General.--Subtitle D of title VII of the Tariff Act of 1930 
is amended by adding after section 771B the following new section:

``SEC. 771C. SPECIAL RULES IN APPLYING TITLE TO FOREIGN-MADE VESSELS.

    ``(a) Definition.--The term `vessel' means any vessel of a kind 
described in heading 8901, 8902.00.00, or 8906 (other than a warship) 
of the Harmonized Tariff Schedule of the United States of not less than 
100 gross tons, as measured under the International Convention on 
Tonnage Measurement of Ships, 1969.
    ``(b) Vessels Considered as Merchandise.--Notwithstanding any other 
provision of law, a vessel is merchandise for purposes of this title 
and shall be subject to antidumping or countervailing duties if an 
order has been issued, but only if the construction or repair of the 
vessel was carried out in a foreign country which--
            ``(1) is not a signatory to a trade agreement with the 
        United States that provides for the immediate elimination of 
        the dumping of vessels and the subsidizing of vessel 
        construction or repair; or
            ``(2) is a signatory to a trade agreement described in 
        paragraph (1) but was not, as determined by the Secretary, in 
        compliance with its obligations under the trade agreement 
        during the construction or repair.
    ``(c) Application of Subtitles A and B.--
            ``(1) In general.--In applying subtitles A and B with 
        respect to vessels constructed, reconstructed, or repaired in 
        foreign countries--
                    ``(A) a vessel shall be treated as sold for 
                importation into the United States when a United States 
                person enters into a contract for--
                            ``(i) the construction or reconstruction of 
                        the vessel by, or the purchase (or leasing, if 
                        the equivalent of a purchase) of the vessel 
                        after construction or reconstruction from, the 
                        builder; or
                            ``(ii) the repair of the vessel; and
                    ``(B) a vessel sold for importation into the United 
                States shall be treated as being offered for entry for 
                consumption under the tariff laws at the time of its 
                first arrival at a port or place in the United States 
                after construction, reconstruction, or repair, 
                regardless of where the vessel is registered or 
                documented.
            ``(2) Definition.--For purposes of paragraph (1), the term 
        `United States person' means--
                    ``(A) any individual or entity described in 
                subsection (a) of section 12102 of title 46, United 
                States Code;
                    ``(B) any agent or other person acting on behalf of 
                any individual or entity referred to in subparagraph 
                (A); or
                    ``(C) any person directly or indirectly owned or 
                controlled by any individual or entity referred to in 
                subparagraph (A).''.
    (b) Applicability of Amendment.--The amendment made by subsection 
(a) applies to a vessel--
            (1) constructed, reconstructed, or repaired under a 
        contract entered into after the date of enactment of this Act; 
        or
            (2) a contract for the construction, reconstruction, or 
        repair of which was entered into on or before the date of the 
        enactment of this Act if such construction, reconstruction, or 
        repair is not completed within 30 months after such date.

  TITLE II--FAIR TRADE FOR THE UNITED STATES SHIPBUILDING AND REPAIR 
                                INDUSTRY

SECTION 201. SHORT TITLE.

    This title may be cited as the ``Shipbuilding Trade Reform Act of 
1993''.

SEC. 202. CONGRESSIONAL FINDINGS.

    (a) Findings.--The Congress finds that--
            (1) in 1981, the United States Government terminated 
        funding for the construction differential subsidy program, 
        thereby ending direct subsidization of commercial shipbuilding 
        in the United States;
            (2) since 1981, the international market for ship 
        construction has been distorted by a wide array of subsidies 
        and other anticompetitive practices by foreign countries, 
        including but not limited to, the member countries of Working 
        Party 6 of the Organization for Economic Cooperation and 
        Development;
            (3) such subsidies and anticompetitive practices include, 
        but are not limited to, direct grants, preferential financing, 
        equity infusions, research and development assistance, 
        restructuring aid, special tax concessions, debt forgiveness, 
        and other forms of direct and indirect assistance;
            (4) foreign countries that directly or indirectly provide 
        subsidies or other forms of anticompetitive assistance for the 
        construction or repair of vessels are engaging in 
        unjustifiable, unreasonable and discriminatory trade practices 
        which--
                    (A) burden and restrict United States commerce,
                    (B) materially injure the United States ship 
                construction and repair industry, and
                    (C) create general or special conditions 
                unfavorable to the ability of United States 
                shipbuilders to engage in the construction of vessels 
                for international commerce;
            (5) foreign shipbuilding subsidies have caused, and 
        threaten to cause, material injury to the United States 
        shipbuilding and ship repair industry, as evidenced by--
                    (A) the closure of more than 40 major shipyards and 
                the loss of over 120,000 jobs in shipyards and their 
                supplier base since 1981,
                    (B) the potential loss of another 180,000 jobs by 
                1998 if foreign subsidies are not eliminated,
                    (C) the decline in the United States share of the 
                international commercial vessel construction market 
                from 7.9 percent in 1979 to less than 1 percent in 
                1991,
                    (D) the sharp drop in the number of oceangoing 
                commercial vessels on order or under construction in 
                United States shipyards from 70 vessels in 1979 to 1 
                vessel in 1991,
                    (E) the substantial reduction in shipyard 
                profitability and the industry's difficulty in raising 
                capital,
                    (F) the dramatic decline in the capacity 
                utilization of United States shipyards and the lost 
                opportunities for technological advancement; and
                    (G) the significant price underselling by foreign 
                shipyards;
            (6) existing United States trade laws and trade agreements 
        provide limited redress to domestic producers of ships for the 
        trade-distorting subsidies and dumping practices of foreign 
        shipbuilders;
            (7) a strong, effective multilateral agreement among 
        shipbuilding nations to eliminate trade-distorting practices in 
        the ship construction industry is the best means of providing 
        for fair international competition, however, absent such an 
        agreement, greater redress under United States law against 
        unfair and unreasonable foreign trade practices in commercial 
        ship construction is necessary;
            (8) a viable United States ship construction, repair and 
        supplier industry is necessary to achieve the national defense 
        and economic security interests of the United States; and
            (9) United States shipyards, which have become almost 
        exclusive defense contractors, are positioning themselves to 
        make those investments in commercial facilities, ship designs, 
        manufacturing process, and structural reorganization that are 
        necessary for their conversion to compete in the international 
        commercial ship construction and repair market and thereby 
        ensure a viable United States industry which can respond to the 
        Nation's future national security requirements; however, this 
        conversion to the commercial market cannot be achieved unless 
        the massive subsidies provided by foreign governments for the 
        construction and repair of commercial ships are eliminated.
    (b) Purpose.--It is the purpose of this title to ensure fair trade 
in the commercial shipbuilding and repair industry by providing for 
additional trade remedies against unfair foreign competition, 
particularly with regard to those situations that cannot be dealt with 
effectively under the antidumping and countervailing duty laws.

SEC. 203. LISTING OF SUBSIDIZING COUNTRIES.

    (a) Establishment of List.--The Secretary shall establish and 
maintain a list containing the name of each foreign country that 
provides, after the date of the enactment of this Act, directly or 
indirectly, any subsidy for the construction or repair of vessels. The 
Secretary shall publish the list in the Federal Register on at least a 
biannual basis.
    (b) Statutory Listings.--
            (1) In general.--Unless the Secretary determines, with 
        clear and convincing evidence, that a foreign country that was 
        a party to negotiating a multilateral agreement for the 
        elimination of shipbuilding subsidies in the Organization for 
        Economic Cooperation and Development Working Party 6 on October 
        16, 1991, does not provide, directly or indirectly, any vessel 
        construction or repair subsidy, the Secretary shall, on the 
        date of the enactment of this Act--
                    (A) place the foreign country on the list;
                    (B) notify the foreign country of its inclusion on 
                the list; and
                    (C) publish notice of the listing in the Federal 
                Register.
            (2) Duration of listing.--Each foreign country listed under 
        subsection (a) as a result of this paragraph shall remain on 
        the list until such time as the foreign country signs a trade 
        agreement with the United States that provides for the 
        immediate elimination of subsidies for the construction and 
        repair of vessels (including the elimination of continuing 
        benefits from prior subsidy programs).
    (c) Listings After Investigations.--
            (1) Initiation of investigations.--
                    (A) Initial investigation.--On the date of the 
                enactment of this Act, the Secretary shall initiate an 
                initial investigation into the practices of foreign 
                countries that provide, directly or indirectly, 
                subsidies for the construction or repair of vessels in 
                such countries. The investigation required under this 
                subparagraph shall be concerned with those foreign 
                countries, other than those required to be listed under 
                subsection (b), which the Secretary has reasonable 
                cause to believe provide, directly or indirectly, any 
                subsidy for the construction or repair of vessels.
                    (B) Subsequent investigations.--If at any time 
                after the date of the enactment of this Act, the 
                Secretary receives--
                            (i) new information; or
                            (ii) a petition for an investigation from 
                        an interested party that specifically alleges 
                        the existence of one or more subsidy practices 
                        and contains information reasonably available 
                        to the petitioner supporting such allegation;
                the Secretary shall, within 20 days after the date of 
                receipt, initiate an investigation into the subsidy 
                practices of the foreign country if the Secretary has 
                reasonable cause, on the basis of such information or 
                petition, to believe that the foreign country is 
                providing, directly or indirectly, any subsidy for the 
                construction or repair of vessels in that country.
            (2) Administrative procedure for investigations; 
        preliminary determinations.--
                    (A) Notice.--Within 7 days after initiating an 
                investigation under paragraph (1)(A) or (B), the 
                Secretary shall publish in the Federal Register a 
                notice of such investigation together with a request 
                for public comments.
                    (B) Public comments.--The Secretary shall--
                            (i) receive public comments during the 30-
                        day period following the day on which notice is 
                        published under subparagraph (A); and
                            (ii) subject to section 206(a), make such 
                        comments available to the general public upon 
                        request.
                    (C) Preliminary determination.--Within 30 days 
                after the close of the public comment period referred 
                to in subparagraph (B), the Secretary, on the basis of 
                the evidence contained in the record, shall make a 
                preliminary determination regarding whether the foreign 
                country provides, directly or indirectly, any subsidy 
                for the construction or repair of vessels.
                    (D) Notice of preliminary determination.--Within 7 
                days after the day on which a preliminary determination 
                is made under subparagraph (C), the Secretary shall 
                publish in the Federal Register a notice of the 
                preliminary determination together with--
                            (i) an explanation of the determination, 
                        including the nature and extent of any subsidy 
                        identified as the basis for the preliminary 
                        determination; and
                            (ii) a request for public comment regarding 
                        the preliminary determination.
                    (E) Public comments on preliminary determination.--
                The Secretary shall--
                            (i) receive public comments during the 30-
                        day period following the day on which notice is 
                        published under subparagraph (D); and
                            (ii) subject to section 206(a), make such 
                        comments available to the general public upon 
                        request.
    (d) Final Determination.--
            (1) In general.--Within--
                    (A) 30 days after the close of the public comment 
                period referred to in subsection (c)(2)(E)(i), in case 
                of an investigation initiated under subsection 
                (c)(1)(A) or (B); or
                    (B) 30 days after the completion of an 
                investigation regarding an emergency listing under 
                subsection (e);
        the Secretary shall make a final determination regarding 
        whether a foreign country provides, directly or indirectly, any 
        subsidy for the construction or repair of vessels. Any 
        determination made by the Secretary under this subsection shall 
        be based solely upon evidence contained in the record, 
        including that information which is otherwise treated as 
        proprietary under 206(a).
            (2) Notification and publication of listing.--If the 
        Secretary determines under paragraph (1) that a foreign country 
        provides, directly or indirectly, any subsidy for the 
        construction or repair of vessels, the Secretary shall, within 
        7 days after the date of the determination--
                    (A) place the foreign country on the list;
                    (B) notify the foreign country of its inclusion on 
                the list; and
                    (C) publish in the Federal Register a notice of the 
                determination and listing together with a full 
                explanation of the determination, including the nature 
                and extent of any subsidy identified as the basis for 
                the determination.
    (e) Emergency Listing.--If at any time the Secretary determines 
that compelling prima facia evidence has been provided by any 
interested party indicating that a foreign country is providing any 
subsidy for the construction or repair of vessels, the Secretary shall, 
within 7 days after receiving such evidence, place that country on the 
list. Within 7 days after making an emergency listing under this 
subsection, the Secretary shall--
            (1) notify the affected foreign country thereof;
            (2) publish in the Federal Register a notice of the 
        determination and the emergency listing, together with a 
        request for public comment and a schedule for an investigation 
        into the alleged subsidy; and
            (3) initiate an investigation into the alleged subsidy.
An investigation initiated under paragraph (3) shall be concluded by 
the Secretary within 60 days after the day of initiation. Upon 
completion of the investigation, the Secretary shall make a final 
determination under subsection (d).
    (f) Reconsideration and Removal of Listings.--
            (1) Reconsideration.--The Secretary may reconsider a final 
        determination under subsection (d)--
                    (A) after receiving an application for 
                reconsideration from the foreign country listed under 
                subsection (a) as a result of that determination, if 
                the application alleges changed circumstances 
                concerning the elimination by the foreign country of 
                its subsidy practices and the Secretary considers the 
                allegations sufficient to warrant a reconsideration; or
                    (B) if the Secretary receives information 
                concerning the signing of an agreement between the 
                United States Government and that foreign country that 
                provides for the immediate elimination by that country 
                of construction and repair subsidies for vessels.
            (2) Restriction on reconsideration.--A foreign country may 
        not make more than one application for reconsideration under 
        this subsection in any calendar year.
            (3) Burden of persuasion.--In any reconsideration under 
        paragraph (1)(A), the burden of persuasion regarding whether 
        there are changed circumstances sufficient to warrant a 
        determination that the foreign country should be removed from 
        the list is on the applicant.
            (4) Removal from list.--The Secretary may remove a foreign 
        country from the list only if the Secretary determines--
                    (A) based solely on the evidence contained in the 
                public record, including that information which is 
                otherwise treated as proprietary under section 206(a), 
                that the foreign country does not provide any subsidy, 
                directly or indirectly, for the construction or repair 
                of vessels (including any continuing benefit from any 
                prior subsidy program); or
                    (B) that there is a signed agreement between the 
                United States Government and the foreign country that 
                provides for the immediate elimination of subsidies for 
                the construction and repair of vessels.
            (5) Administrative procedures for reconsideration.--
                    (A) Notice and comment.--After receiving an 
                application for reconsideration under paragraph (4) 
                from a foreign country, the Secretary shall--
                            (i) within 7 days publish in the Federal 
                        Register the text of the application together 
                        with a request for public comments; and
                            (ii) receive comments from the public for a 
                        period of 60 days after the date of publication 
                        and, subject to section 206(a), make such 
                        comments available to the general public upon 
                        request.
                    (B) Review and determination.--Within 90 days after 
                receiving an application for reconsideration under 
                paragraph (4), the Secretary shall--
                            (i) review the comments received under 
                        subparagraph (A) and issue a final affirmative 
                        or negative determination regarding the removal 
                        of the foreign country from the list; and
                            (ii) publish notice in the Federal Register 
                        of the determination together with a full 
                        explanation thereof.
    (g) Judicial Review.--
            (1) Review of determination.--Within 30 days after the date 
        of publication in the Federal Register of a final determination 
        of the Secretary made under subsection (d)(1) or (f)(5)(B), any 
        person who is a party to the proceeding in connection with 
        which the matter arises may commence an action in the United 
        States Court of International Trade by filing concurrently a 
        summons and complaint, each with the content and in the form, 
        manner, and style prescribed by the rules of that court, 
        contesting any factual findings or legal conclusions upon which 
        the determination is based.
            (2) Procedures and fees.--The procedures and fees set forth 
        in chapter 169 of title 28, United States Code, apply to an 
        action under this subsection.
            (3) Standard of review.--The court shall hold unlawful any 
        determination, finding, or conclusion found to be unsupported 
        by substantial evidence on the record, or otherwise not in 
        accordance with law.
            (4) Record for review.--The record for review shall consist 
        of a copy of all information presented to or obtained by the 
        Secretary during the course of the administrative proceeding, 
        including all governmental memoranda pertaining to the case and 
        the record of ex parte meetings, as well as a copy of the 
        determination, all transcripts or records of conferences and 
        hearings, and all notices published in the Federal Register.
            (5) Standing.--Any person who was a party to the 
        administrative proceedings described in this section shall have 
        the right to appear and be heard as a party in interest before 
        the United States Court of International Trade. The party 
        filing the action shall notify all such persons of the filing 
        of an action under this section, in the form, manner, and 
        within the time prescribed by the rules of the court.
            (6) Conforming amendment.--Section 1581 of title 28, United 
        States Code, is amended by adding the following subsection:
    ``(k) The Court of International Trade shall have exclusive 
jurisdiction of any civil action commenced under section 203(g) of the 
Shipbuilding Trade Reform Act of 1993.''.

SEC. 204. PENALTIES.

    (a) Penalty for False Information and Renewal of Subsidies.--
            (1) In general.--The Secretary shall place a foreign 
        country on the list for a period of not less than 5 years if 
        the Secretary--
                    (A) determines that a foreign country provided the 
                Secretary with false or misleading information during 
                any investigation or reconsideration under section 203; 
                or
                    (B) after making a final determination under 
                section 203(d) or (f) that the foreign country is not 
                providing a subsidy, determines that the foreign 
                country provides, directly or indirectly, any new 
                construction or repair subsidy (including the 
                reinstatement of any benefit under any prior subsidy 
                program).
        A listing required by this subsection shall be made within 30 
        days after the date of the determination under paragraph (1) or 
        (2).
            (2) Time limits for determinations.--The Secretary shall 
        make a determination under subparagraph (A) or (B) of paragraph 
        (1) within 30 days after the day on which the Secretary 
        receives information indicating that a violation of the 
        subparagraph has likely occurred.
    (b) Penalties for Failure to Eliminate Subsidies.--
            (1) Precondition for imposition of penalties.--Actions by 
        the Secretary under paragraphs (2), (3), and (4) may be taken 
        only if the Secretary determines that the foreign country 
        concerned has been notified of its inclusion on the list and 
        has failed within 180 days after that notification to enter 
        into any agreement with the United States that provides for the 
        immediate elimination of subsidies for the construction and 
        repair of vessels.
            (2) Penalties for new affected vessels.--Subject to 
        paragraph (1) and subsection (c), the Secretary shall take one 
        or more of the following actions with respect to any new 
        affected vessel:
                    (A) Limit the sailings of the vessel to or from the 
                United States, or the amount of cargo carried, by the 
                vessel to not less than 50 percent of the number of 
                sailings, or the amount of cargo carried, by the vessel 
                during the immediately preceding full calendar year.
                    (B) Impose on the vessel a fee not less than 
                $500,000 and not more than $1,000,000 per voyage.
                    (C) Direct the appropriate customs officer at any 
                port or place of destination in the United States to 
                refuse the clearance required by section 4197 of the 
                Revised Statutes of the United States to the vessel.
                    (D) Direct the Secretary of the department in which 
                the Coast Guard is operating to deny entry for purpose 
                of oceanborne trade of the vessel to any port or place 
                in the United States or the navigable waters of the 
                United States.
            (3) Penalties for existing affected vessels.--Subject to 
        paragraph (1) and subsection (c), if the Secretary finds the 
        existence of conditions unfavorable to the ability of any 
        United States shipbuilder to engage in the construction or 
        repair of vessels for international commerce which arise out 
        of, or result from, a subsidy provided by a foreign country on 
        the list established under subsection (a), the Secretary shall 
        take either or both of the actions described in subparagraphs 
        (A) and (B) of paragraph (2) with respect to an existing 
        affected vessel of that country.
            (4) Cargo diversion.--Subject to paragraph (1) and 
        subsection (c), the Secretary shall direct the appropriate 
        customs officer to deny entry of cargo into the United States 
        that has been transported on an affected vessel if that cargo 
        has been transported to a port or place in the United States 
        through a foreign port or place in a country contiguous to the 
        United States.
            (5) Definitions.--As used in this subsection:
                    (A) The term ``affected vessel'' means a vessel--
                            (i) that is documented under the laws of a 
                        foreign country that is on the list; or
                            (ii) the controlling interest in which is 
                        held by a citizen or national of, or a legal 
                        entity existing under the laws of, a foreign 
                        country that is on the list, regardless of 
                        whether the vessel is documented under the laws 
                        of that country.
                    (B) The term ``existing affected vessel'' means an 
                affected vessel that is not a new affected vessel.
                    (C) The term ``new affected vessel'' means an 
                affected vessel that was constructed after the date of 
                the enactment of this Act, unless such construction was 
                completed within 30 months after such date of enactment 
                under a contract entered into before such date of 
                enactment.
    (c) Imposition and Duration of Penalties Imposed Under This 
Section.--No penalty may be imposed under this section before 120 days 
after the date of the enactment of this Act. Any penalty imposed under 
subsection (b)(2), (3), or (4) shall remain in effect until such time 
as the foreign country is removed from the list under section 203(f).

SEC. 205. TRADE AGREEMENTS.

    (a) In General.--Any negotiation to which the United States is a 
party for the elimination of subsidies for the construction or repair 
of vessels by foreign countries shall be conducted by the United States 
Government in full consultation with the affected industries in the 
United States.
    (b) Monitoring.--The Secretary shall monitor the compliance of each 
foreign country with any agreement to which the United States and such 
country are parties for the elimination of subsidies for the 
construction or repair of vessels. The Secretary shall publish annually 
in the Federal Register the findings made by the Secretary under this 
subsection together with a request for public comments.
    (c) Penalty for Noncompliance.--If, based on the findings made and 
the public comments received under subsection (b), the Secretary 
determines (within 90 days after the day of publication of the findings 
under subsection (b)) that a foreign country is not in compliance with 
the agreement, the Secretary shall, within 7 days after making such 
determination, place such foreign country on the list and impose 
penalties under paragraph (2), (3), or (4) of section 204(b) with 
respect to such country (and for purposes of applying any such penalty, 
paragraph (1) of section 204(b) shall be disregarded).

SEC. 206. GENERAL ADMINISTRATIVE PROVISIONS.

    (a) Proprietary Information.--The procedures set forth in section 
777 of the Tariff Act of 1930 shall govern the rights of access to 
information obtained by the Secretary during the course of any 
investigation conducted under section 203.
    (b) Information Used in Making Determinations.--The Secretary 
shall, before making any final determination under section 203, 204, or 
205 verify all information that will be relied upon in making that 
determination. If the Secretary is unable to verify any information 
submitted, the Secretary shall use the best information available as 
the basis for action. Whenever a party refuses or is unable to produce 
the information requested in a timely manner and in the form provided, 
the Secretary shall use the best information otherwise available. All 
information presented to or obtained by the Secretary shall be part of 
the record of the proceeding.
    (c) Public Availability of Determinations.--The Secretary shall 
make available for public inspection the text of all determinations 
made under section 203, 204, or 205.

SEC. 207. DEFINITIONS.

    (a) Definitions.--As used in this title:
            (1) The term ``conditions unfavorable to the ability of any 
        United States shipbuilder to engage in the construction or 
        repair of vessels for international commerce'' includes, but is 
        not limited to, any conditions available to, and favorable for, 
        foreign shipbuilders which are not reciprocally available to 
        and favorable for United States shipbuilders and which--
                    (A) provide any disincentive to investment in 
                United States ship construction or repair facilities, 
                equipment, and technology;
                    (B) contribute to any reduction in the 
                competitiveness of any United States shipbuilder to 
                engage in the construction or repair of vessels for 
                international commerce; or
                    (C) otherwise contribute to any distortion of the 
                international market for ship construction or repair.
            (2) The term ``construction'' includes reconstruction.
            (3) The term ``interested party'' means--
                    (i) a person that engages in ship construction or 
                repair in the United States;
                    (ii) a certified union or recognized union or group 
                of workers which is representative of an industry that 
                engages in ship construction or repair in the United 
                States;
                    (iii) a trade or business association whose members 
                include firms, partnerships, or other entities that 
                engage in ship construction or repair in the United 
                States; and
                    (iv) an association, a majority of whose members is 
                composed of interested parties described in clauses 
                (i), (ii), and (iii) with respect to ship construction.
            (4) The term ``foreign shipyard'' includes a ship 
        construction or repair facility located in a foreign country 
        that is directly or indirectly owned, controlled, managed, or 
        financed by a foreign shipyard that receives or benefits from a 
        subsidy.
            (5) The term ``list'' means the list established under 
        section 203(a).
            (6) The term ``Secretary'' means the Secretary of Commerce.
            (7) The term ``subsidy'' includes, but is not limited to, 
        any of the following:
                    (A) Officially supported export credits and 
                development assistance.
                    (B) Direct official operating support to the 
                commercial shipbuilding and repair industry, or to a 
                related entity that favors the operation of 
                shipbuilding and repair, including--
                            (i) grants;
                            (ii) loans and loan guarantees other than 
                        those available on the commercial market;
                            (iii) forgiveness of debt;
                            (iv) equity infusions on terms inconsistent 
                        with commercially reasonable investment 
                        practices;
                            (v) preferential provision of goods and 
                        services; and
                            (vi) public sector ownership of commercial 
                        shipyards on terms inconsistent with 
                        commercially reasonable investment practices.
                    (C) Direct official support for investment in the 
                commercial shipbuilding and repair industry, or to a 
                related entity that favors the operation of 
                shipbuilding and repair, including the kinds of support 
                listed in clauses (i) through (v) of subparagraph (B), 
                and any restructuring support, except public support 
                for social purposes directly and effectively linked to 
                shipyard closures.
                    (D) Assistance in the form of grants, preferential 
                loans, preferential tax treatment, or otherwise, that 
                benefits or is directly related to shipbuilding and 
                repair for purposes of research and development that is 
                not equally open to domestic and foreign enterprises.
                    (E) Tax policies and practices that favor the 
                shipbuilding and repair industry, directly or 
                indirectly, such as tax credits, deductions, exemptions 
                and preferences, including accelerated depreciation, if 
                the benefits are not generally available to persons or 
                firms not engaged in shipbuilding or repair.
                    (F) Any official regulation or practice that 
                authorizes or encourages persons or firms engaged in 
                shipbuilding or repair to enter into anticompetitive 
                arrangements.
                    (G) Any indirect support directly related, in law 
                or in fact, to shipbuilding and repair at national 
                yards, including any public assistance favoring 
                shipowners with an indirect effect on shipbuilding or 
                repair activities, and any assistance provided to 
                suppliers of significant inputs to shipbuilding, which 
                results in benefits to domestic shipbuilders.
                    (H) Any export subsidy identified in the 
                Illustrative List of Export Subsidies in the Annex to 
                the Agreement on Interpretation and Application of 
                Articles VI, XVI, and XXIII of the General Agreement on 
                Tariffs and Trade or any other export subsidy that may 
                be prohibited as a result of the Uruguay Round of trade 
                negotiations.
            (8) The term ``vessel'' means any self-propelled, seagoing 
        vessel--
                    (A) of not less than one hundred gross tons, as 
                measured under the International Convention of Tonnage 
                Measurement of Ships, 1969; and
                    (B) not exempt from entry under section 441 of the 
                Tariff Act of 1930.

                                 <all>

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