[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 502 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 502

    To amend the Tariff Act of 1930 to improve the antidumping and 
        countervailing duty provisions, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                March 4 (legislative day, March 3), 1993

Mr. Rockefeller (for himself and Mr. Wofford) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Tariff Act of 1930 to improve the antidumping and 
        countervailing duty provisions, and for other purposes.

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

SECTION 1. STANDARD FOR INITIATING PETITION.

    (a) Countervailing Duties.--
            (1) Petition requirements.--The first sentence of section 
        702(b)(1) of the Tariff Act of 1930 (19 U.S.C. 1671a(b)(1)) is 
        amended by striking ``which alleges'' and all that follows 
        through ``allegations'' and inserting ``which contains a short 
        and plain statement of the elements necessary for the 
        imposition of the duty imposed by section 701(a) and adequate 
        information to give notice of the factual basis for the 
        petitioner's allegations''.
            (2) Petition determination.--Paragraph (1) of section 
        702(c) of such Act (19 U.S.C. 1671a(c)(1)) is amended by 
        striking ``contains information'' and all that follows through 
        ``allegations'' and inserting ``contains a short and plain 
        statement of the elements necessary for the imposition of the 
        duty imposed by section 701(a) and adequate information to give 
        notice of the factual basis for the petitioner's allegations''.
    (b) Antidumping Duties.--
            (1) Petition requirements.--The first sentence of section 
        732(b)(1) of such Act (19 U.S.C. 1673a(b)(1)) is amended by 
        striking ``which alleges'' and all that follows through 
        ``allegations'' and inserting ``which contains a short and 
        plain statement of the elements necessary for the imposition of 
        the duty imposed by section 731 and adequate information to 
        give notice of the factual basis for the petitioner's 
        allegations''.
            (2) Petition determination.--Paragraph (1) of section 
        732(c) of such Act (19 U.S.C. 1673a(c)(1)) is amended by 
        striking ``contains information'' and all that follows through 
        ``allegations'' and inserting ``contains a short and plain 
        statement of the elements necessary for the imposition of the 
        duty imposed by section 731 and adequate information to give 
        notice of the factual basis for the petitioner's allegations''.

SEC. 2. DETERMINATION OF MATERIAL INJURY.

    (a) Volume of Imports.--Section 771(7)(C)(i) of the Tariff Act of 
1930 (19 U.S.C. 1677(7)(C)(i)) is amended by adding at the end thereof 
the following new sentence: ``An inference shall not be made that there 
is no material injury, if the volume of imports has decreased after the 
initiation of an investigation under section 702 or 732.''.
    (b) Price Competition.--Section 771(7)(C)(ii) of such Act (19 
U.S.C. 1677(7)(C)(ii)) is amended by inserting immediately after 
subclause (II) the following flush sentence:
                        ``For purposes of this clause, the Commission 
                        shall compare the price at which imported 
                        merchandise is sold to the ultimate consumer 
                        with the price at which like products of the 
                        United States are sold to the ultimate 
                        consumer.''.
    (c) Cumulation.--Section 771(7)(C)(iv) of such Act (19 U.S.C. 
1677(7)(C)(iv)) is amended by adding at the end thereof the following 
new subclause:
                                    ``(III) Look-back.--For purposes of 
                                clauses (i) and (ii) and subparagraph 
                                (F), if a petition is filed under this 
                                title with respect to a product or like 
                                product which was the basis of a final 
                                affirmative determination during the 3 
                                years preceding the filing of such 
                                petition, the Commission shall consider 
                                as part of its investigation of the new 
                                petition the previous injurious dumping 
                                or subsidization as an important factor 
                                in determining the industry's 
                                vulnerability to material injury.''.
    (d) Negligibility.--Section 771(7)(C) of such Act (19 U.S.C. 
1677(7)(C)) is amended by adding at the end thereof the following new 
clause:
                            ``(vi) Treatment of negligible imports in 
                        subsequent investigations.--Notwithstanding 
                        clause (v), in the case of a petition filed 
                        under this title with respect to the 
                        importation of merchandise which was the 
                        subject of a final affirmative determination 
                        during the 3 years preceding the filing of such 
                        petition, importation of merchandise otherwise 
                        considered negligible shall not be considered 
                        negligible and shall be treated as having an 
                        adverse impact on the domestic industry, if the 
                        pattern, volume, price, import penetration, and 
                        other factors of such imports, when considered 
                        as part of the current investigation, would 
                        result in an affirmative determination.''.
    (e) Concentration of Imports.--Section 771(4)(C) of such Act (19 
U.S.C. 1677(4)(C)) is amended by adding at the end thereof the 
following new sentence: ``Concentration of subsidized or dumped imports 
exists with respect to a market, if the percentage of subsidized or 
dumped imports to consumption of imports and domestically produced like 
products in such market is clearly higher than the percentage is in the 
rest of the United States.''.

SEC. 3. EFFECT OF SUSPENSION AGREEMENTS ON FINAL DETERMINATION.

    Section 734(j) of the Tariff Act of 1930 (19 U.S.C. 1673c(j)) is 
amended--
            (1) by striking ``In making a final determination'' and 
        inserting:
            ``(1) In general.--In making a final determination'', and
            (2) by adding at the end thereof the following new 
        paragraph:
            ``(2) Other factors.--In a case in which a suspension of 
        investigation has been terminated under subsection (i)(1) or an 
        investigation has been continued under subsection (g), in 
        making a final determination--
                    ``(A) the Commission shall not consider as a factor 
                supporting a negative determination any decrease in 
                imports subject to such investigation or any 
                improvement in the condition of the domestic industry 
                which occurred after the suspension agreement became 
                effective, and
                    ``(B) the administering authority shall not 
                consider as a factor supporting a negative 
                determination any decrease in foreign market value of 
                imports subject to such investigation or any increase 
                in United States prices which occurred after the 
                suspension agreement became effective.''.

SEC. 4. DETERMINATION OF SUBSIDY.

    (a) Loans by International Development Banks.--Section 
771(5)(A)(ii)(I) of the Tariff Act of 1930 (19 U.S.C. 
1677(5)(A)(ii)(I)) is amended by inserting ``(including loans or loan 
guarantees by an international development bank)'' after ``loan 
guarantees''.
    (b) Capital and Loans To Expand Production.--Section 771(5)(A) of 
such Act (19 U.S.C. 1677(5)(A)) is amended by adding at the end thereof 
the following new clause:
                            ``(iii) The provision of capital, loans, or 
                        loan guarantees by a government for the 
                        expansion of production or improvements in 
                        existing production, if one-third or more of 
                        the output from such production can reasonably 
                        be expected to be exported.''.

SEC. 5. PREVENTION OF CIRCUMVENTION OR DIVERSION OF ANTIDUMPING AND 
              COUNTERVAILING DUTY ORDERS.

    (a) Merchandise Completed or Assembled in the United States.--
Section 781(a) of the Tariff Act of 1930 (19 U.S.C. 1677j(a)) is 
amended to read as follows:
    ``(a) Merchandise Completed or Assembled in the United States.--
            ``(1) In general.-- In determining whether imported parts 
        or components are circumventing an antidumping or 
        countervailing duty order or finding and whether to include 
        such parts or components in that order or finding, the 
        administering authority shall consider--
                    ``(A) the pattern of trade,
                    ``(B) the value and sources of supply of parts or 
                components historically used in completion or assembly 
                of the merchandise subject to an antidumping or 
                countervailing duty order,
                    ``(C) whether the manufacturer or exporter of the 
                parts or components is related to the person who 
                assembles or completes the merchandise sold in the 
                United States from the parts or components produced in 
                the foreign country with respect to which the order or 
                finding described in paragraph (2) applies, and
                    ``(D) whether imports into the United States of the 
                parts or components produced in such foreign country 
                have increased after the issuance of such order or 
                finding.
            ``(2) Merchandise that may be included in order or 
        finding.--If--
                    ``(A) merchandise sold in the United States is of 
                the same class or kind as any other merchandise that is 
                the subject of--
                            ``(i) an antidumping duty order issued 
                        under section 736,
                            ``(ii) a finding issued under the 
                        Antidumping Act, 1921, or
                            ``(iii) a countervailing duty order issued 
                        under section 706 or 303,
                    ``(B)(i) such merchandise sold in the United States 
                is completed or assembled in the United States from 
                parts or components supplied by the exporter or 
                producer with respect to which such order or finding 
                applies, from suppliers that have historically supplied 
                the parts or components to that exporter or producer, 
                or from any party in the exporting country supplying 
                parts or components on behalf of such an exporter or 
                producer, and
                    ``(ii) the value of the imported parts and 
                components referred to in clause (i), whether 
                considered individually or collectively, is significant 
                in relation to the total value of all parts and 
                components used in the assembly or completion 
                operation, excluding packing, of the imported 
                merchandise covered by the order or finding, or
                    ``(C) consideration of the factors set forth in 
                paragraph (1) otherwise establishes a pattern of 
                circumvention with the effect of evading an antidumping 
                or countervailing duty order or finding,
        the administering authority, after taking into account any 
        advice provided by the Commission under subsection (e), may 
        include within the scope of such order or finding the imported 
        parts or components referred to in subparagraph (B) that are 
        used in the completion or assembly of the merchandise in the 
        United States at any time such order or finding is in 
        effect.''.
    (b) Merchandise Completed or Assembled in Other Foreign 
Countries.--Section 781(b) of the Tariff Act of 1930 (19 U.S.C. 
1677j(b)) is amended to read as follows:
    ``(b) Merchandise Completed or Assembled in Other Foreign 
Countries.--
            ``(1) In general.--In determining whether merchandise 
        completed or assembled in a foreign country is circumventing an 
        antidumping or countervailing duty order or finding and whether 
        to include such merchandise in that order or finding, the 
        administering authority shall consider--
                    ``(A) the pattern of trade,
                    ``(B) the value and sources of supply of parts or 
                components historically used in completion or assembly 
                of the merchandise subject to an antidumping or 
                countervailing duty order,
                    ``(C) whether the manufacturer or exporter of the 
                merchandise described in paragraph (2)(B) is related to 
                the person who uses the merchandise described in 
                paragraph (2)(B) to assemble or complete in the foreign 
                country the merchandise that is subsequently imported 
                into the United States, and
                    ``(D) whether imports into the foreign country of 
                the merchandise described in paragraph (2)(B) have 
                increased after the issuance of such order or finding.
            ``(2) Merchandise that may be included in order or 
        finding.--If--
                    ``(A) merchandise imported into the United States 
                is either of the same class or kind or incorporates an 
                essential component that is of the same class or kind 
                as merchandise produced in a foreign country that is 
                the subject of--
                            ``(i) an antidumping duty order issued 
                        under section 736,
                            ``(ii) a finding issued under the 
                        Antidumping Act, 1921, or
                            ``(iii) a countervailing duty order issued 
                        under section 706 or section 303; and
                    ``(B)(i)(I) before importation into the United 
                States, such imported merchandise is completed or 
                assembled in another foreign country from merchandise 
                which is subject to such order or finding, is produced 
                in the foreign country with respect to which such order 
                or finding applies, or is supplied by the exporter or 
                producer with respect to which such order or finding 
                applies or by suppliers that have historically supplied 
                the parts or components to that exporter or producer, 
                and
                    ``(II) the merchandise referred to in subclause (I) 
                which is used in the assembly or completion of the 
                imported merchandise has a value that is significant in 
                relation to the total value of all parts or components 
                used in the assembly or completion operation, excluding 
                packing, or
                    ``(ii) consideration of the factors set forth in 
                paragraph (1) otherwise establishes a pattern of 
                circumvention with the effect of evading a 
                countervailing or antidumping duty order or finding, 
                and
                    ``(C) the administering authority determines that 
                action is appropriate under this paragraph to prevent 
                evasion of such order or finding,
        the administering authority, after taking into account any 
        advice provided by the Commission under subsection (e), may 
        include such imported merchandise within the scope of such 
        order or finding at any time such order or finding is in 
        effect.''.
    (c) Construction Provision.--Section 781 of the Tariff Act of 1930 
(19 U.S.C. 1677j) is amended by adding at the end the following new 
subsection:
    ``(f) Construction Provision.--Nothing in this title shall be 
deemed to limit the authority of the administering authority to include 
provisions in any final order issued pursuant to--
            ``(1) an antidumping duty order issued under section 736,
            ``(2) a finding issued under the Antidumping Act, 1921, or
            ``(3) a countervailing duty order issued under section 706 
        or section 303,
the purpose of which is to prevent the evasion of any remedy provided 
for in such finding or order or to otherwise safeguard the integrity of 
such finding or order.''.

SEC. 6. DETERMINATION OF COMPETITIVE BENEFIT IN UPSTREAM SUBSIDIES.

    (a) In General.--Section 771A(b)(1) of the Tariff Act of 1930 (19 
U.S.C. 1677-1(b)(1)) is amended--
            (1) by striking ``Except'' and inserting ``(A) Except'',
            (2) by striking ``another seller'' and inserting ``an 
        unsubsidized seller'' in subparagraph (A), as redesignated by 
        paragraph (1), and
            (3) by adding at the end thereof the following new 
        subparagraph:
                    ``(B) For purposes of subparagraph (A), 
                determination of the price the manufacturer or producer 
                would otherwise pay for the product in obtaining it 
                from an unsubsidized seller shall be based on the 
                following factors in the order in which such factors 
                are listed:
                            ``(i) the price paid by the manufacturer or 
                        producer to an unsubsidized seller located in 
                        the same country as the seller of the input 
                        product,
                            ``(ii) the price paid by the manufacturer 
                        or producer to an unsubsidized seller located 
                        in a country other than the country of the 
                        seller of the input product,
                            ``(iii) information on prices (including 
                        all delivery fees) from an unsubsidized seller 
                        of the input product located in the same 
                        country as the subsidized seller of the input 
                        product, or
                            ``(iv) information on prices (including all 
                        delivery fees) from an unsubsidized seller of 
                        the input product located in a country other 
                        than the country of the subsidized seller of 
                        the input product.''.
    (b) Definition.--Section 771A(a) of the Tariff Act of 1930 (19 
U.S.C. 1677-1(a)) is amended by inserting ``or authorized'' after 
``provided'' in the last sentence.

SEC. 7. DIVERSIONARY INPUT DUMPING.

    (a) In General.--Subtitle D of title VII of the Tariff Act of 1930 
(19 U.S.C. 1677 et seq.) is amended by inserting after section 771B the 
following new section:

``SEC. 771C. DIVERSIONARY INPUT DUMPING.

    ``For purposes of this title, diversionary input dumping occurs 
when--
            ``(1) a producer or manufacturer incorporates into 
        merchandise under investigation a component or a material which 
        is the subject of--
                    ``(A) an antidumping duty order issued under 
                section 736, or
                    ``(B) an international arrangement or agreement 
                described in section 734, if such arrangement or 
                agreement was entered into after an affirmative 
                preliminary determination was made under section 
                733(b), and
            ``(2) the producer or manufacturer under investigation 
        purchased the material or component at a price which is less 
        than the foreign market value (determined under section 
        773(e)).''.
    (b) Foreign Value.--
            (1) In general.--Paragraph (2) of section 773(a) of such 
        Act (19 U.S.C. 1677b(a)(2)) is amended by inserting ``(or, if 
        the administering authority finds there is a reasonable basis 
        to believe that diversionary input dumping is occurring which 
        has a significant effect on the cost of producing the 
        merchandise under investigation)'' after ``paragraph (1)(A)''.
            (2) Special rule for diversionary input dumping.--Section 
        773(e) of such Act (19 U.S.C. 1677b(e)) is amended by adding at 
        the end thereof the following new paragraph:
            ``(5) Diversionary input dumping.--If the administering 
        authority determines that diversionary input dumping is 
        occurring and has a significant effect on the cost of producing 
        the merchandise under investigation, the administering 
        authority shall, in calculating the cost of the material or 
        component under paragraph (1)(A), include the amount of the 
        diversionary input dumping determined to exist with respect to 
        such material or component. For purposes of the preceding 
        sentence, the amount of the diversionary input dumping is the 
        difference, if any, by which--
                    ``(A) the foreign market value of the input 
                material or component involved, as calculated under 
                this title, exceeds
                    ``(B) the purchase price of the input material or 
                component paid by the producer or manufacturer of the 
                merchandise under investigation.''.
    (c) Procedures for Initiating an Antidumping Investigation.--
Section 732(a) of such Act (19 U.S.C. 1673a(a)) is amended by adding at 
the end thereof the following new paragraph:
            ``(3) Cases involving diversionary input dumping.--The 
        administering authority shall investigate whether diversionary 
        input dumping is occurring whenever the administering authority 
        has reasonable grounds to believe or suspect that--
                    ``(A) diversionary input dumping (as defined in 
                section 771C) is occurring,
                    ``(B) such diversionary input dumping has a 
                significant effect on the cost of producing the 
                merchandise under investigation, and
                    ``(C) official Government or other reliable, 
                generally accepted trade statistics indicate that 
                subsequent to the imposition of an antidumping duty 
                order or entry into force of an international agreement 
                relating to imports into the United States of the 
                material or component in question, shipments to the 
                United States of the merchandise under investigation 
                have increased (either in quantity or market share).''.
    (d) Timetable for Preliminary Determination by Administering 
Authority.--Section 733(b)(1) of such Act (19 U.S.C. 1673b(b)(1)) is 
amended by adding at the end thereof the following new subparagraph:
                    ``(D) If diversionary input dumping involved.--If, 
                as part of a petition filed under section 732(b), or an 
                investigation commenced under section 732(a), the 
                administering authority has reasonable grounds to 
                believe or suspect that diversionary input dumping is 
                occurring, the administering authority may treat the 
                investigation as an extraordinarily complicated case 
                under subsection (c) and may extend the period of time 
                for making a preliminary determination accordingly.''.
    (e) Clerical Amendment.--The table of contents for subtitle VII of 
the Tariff Act of 1930 is amended by inserting after the item relating 
to section 771B the following new item:

``Sec. 771C. Diversionary input dumping.''.

SEC. 8. MONITORING.

    (a) In General.--Section 732(a)(2)(A)(i) of the Tariff Act of 1930 
(19 U.S.C. 1673a(a)(2)(A)(i)) is amended by striking ``more than one'' 
and inserting ``one or more''.
    (b) Downstream Product Monitoring.--Section 780(a)(2)(B)(iii) of 
such Act (19 U.S.C. 1677i(a)(2)(B)(iii)) is amended by striking ``at 
least 2'' and inserting ``1 or more''.

SEC. 9. APPLICATION OF AMENDMENTS TO CANADA.

    The amendments made by this Act apply with respect to goods 
imported into the United States from Canada.

SEC. 10. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsections (b) and (c), the 
amendments made by this Act shall take effect on the date of the 
enactment of this Act.
    (b) Standard for Initiating Petition; Determination of Injury.--The 
amendments made by section 1 (relating to the provisions of sections 
702 and 732 of the Tariff Act of 1930) and section 2 (relating to the 
provisions of sections 771(7)(C) and 771(4)(C) of the Tariff Act of 
1930) apply with respect to investigations initiated on or after the 
date of the enactment of this Act.
    (c) Prevention of Circumvention.--The amendments made by section 5 
(relating to section 781 of the Tariff Act of 1930) apply with respect 
to articles entered, or withdrawn from warehouse for consumption, on or 
after the date of the enactment of this Act.

                                 <all>

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