[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1354 Introduced in Senate (IS)]

  1st Session
                                S. 1354

    To improve and implement the OECD Shipbuilding Trade Agreement.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 23, 1995

  Mr. Breaux introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To improve and implement the OECD Shipbuilding Trade Agreement.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Shipbuilding Trade Agreement Act''.

SEC. 2. APPROVAL OF THE SHIPBUILDING AGREEMENT.

    The Congress approves the Agreement Respecting Normal Competitive 
Conditions in the Commercial Shipbuilding and Repair Industry 
(hereinafter in this Act referred to as the ``Shipbuilding 
Agreement''), and the related Understanding on Export Credits for 
Ships, which collectively are a reciprocal trade agreement resulting 
from negotiations under the auspices of the Organization for Economic 
Cooperation and Development, entered into on December 21, 1994.

SEC. 3. EFFECTIVE DATE.

    This Act takes effect on the date that the Shipbuilding Agreement 
enters into force with respect to the United States.

             TITLE I--INJURIOUS PRICING AND COUNTERMEASURES

SEC. 101. INJURIOUS PRICING AND COUNTERMEASURES PROCEEDINGS.

    The Tariff Act of 1930, as amended, is further amended by the 
addition of the following title and sections:

          ``TITLE VIII--INJURIOUS PRICING AND COUNTERMEASURES

``SEC. 831. INJURIOUS PRICING CHARGE.

    ``(a) If--
            ``(1) the administering authority determines that a foreign 
        vessel, as defined in section 871(8), has been sold directly or 
        indirectly to one or more United States buyers at less than its 
        fair value, and
            ``(2) the Commission determines that--
                    ``(A) an industry, in the United States--
                            ``(i) is or has been materially injured, or
                            ``(ii) is threatened with material injury, 
                        or
                    ``(B) the establishment of an industry in the 
                United States is or has been materially retarded,
        by reason of the sale of such vessel,
then there shall be imposed upon the foreign producer of the subject 
vessel an injurious pricing charge, in an amount equal to the amount by 
which the normal value exceeds the export price for the vessel. For 
purposes of this subsection and section 835(b)(1), a reference to the 
sale of a foreign vessel includes the creation or transfer of an 
ownership interest, as defined in section 871(7), in the vessel, except 
for an ownership interest created or acquired solely for the purpose of 
providing security for a normal commercial loan.
    ``For the purpose of title VIII, the term `sale' also includes 
contracts for the reconstruction of a vessel by a foreign producer for 
the United States owner of the vessel. References in title VIII to 
producing or building of a vessel shall also encompass the 
reconstruction of an existing vessel.
    ``(b) No foreign vessel, as defined in section 871(8), may be 
considered to be, or to be part of, a class or kind of merchandise for 
purposes of subtitle B of title VII of this Act.

``SEC. 832. PROCEDURES FOR INITIATING AN INJURIOUS PRICING 
              INVESTIGATION.

    ``(a) Initiation by Administering Authority.--
            ``(1) General rule.--Except in the case in which paragraph 
        (c)(6) applies, an injurious pricing investigation shall be 
        initiated whenever the administering authority determines, from 
        information available to it, that a formal investigation is 
        warranted into the question of whether the elements necessary 
        for the imposition of a duty under section 831 exist, and 
        whether a domestic producer, as defined in section 871(17)(C), 
        would meet the criteria of paragraph (b)(1)(A) for a 
        petitioner.
            ``(2) Time for initiation by administering authority.--An 
        investigation may only be initiated under paragraph (1) within 
        six months after the time the administering authority knew or 
        should have known of the sale of the vessel. Any period in 
        which paragraph (c)(6)(A) applies shall not count for purposes 
        of the six-month period.
    ``(b) Initiation by Petition.--
            ``(1) Petition requirements.--Except in a case in which 
        paragraph (c)(6) applies, an injurious pricing proceeding shall 
        be initiated whenever an interested party, as defined in 
        subparagraph (C), (D), (E) or (F) of section 871(17), files a 
        petition with the administering authority, on behalf of an 
        industry, which alleges the elements necessary for the 
        imposition of an injurious pricing charge under section 831 and 
        the elements required under subparagraph (A), (B) or (C) of 
        this section, and which is accompanied by information 
        reasonably available to the petitioner supporting those 
        allegations and identifying the transaction concerned.
                    ``(A) If the petitioner is a domestic producer, as 
                described in section 871(17)(C), and--
                            ``(i) if the vessel was sold through a 
                        broad multiple bid, the petition shall include 
                        information that the petitioner was invited to 
                        tender a bid on the contract at issue, 
                        petitioner actually did so, and the bid of the 
                        petitioner substantially met bid specifications 
                        (i.e., delivery date and technical 
                        requirements), or
                            ``(ii) if the vessel was sold through any 
                        bidding process other than a broad multiple bid 
                        and the petitioner was invited to tender a bid 
                        on the contract at issue, the petition shall 
                        include information that petitioner actually 
                        did so and the bid of the petitioner 
                        substantially met bid specifications, or
                            ``(iii) except in case in which the vessel 
                        was sold through a broad multiple bid, if there 
                        is no invitation to tender a bid, the petition 
                        shall include information that the petitioner 
                        was capable of building the vessel concerned 
                        and, if the petitioner knew or should have know 
                        of the proposed purchase, it made demonstrable 
                        efforts to conclude a sale with the United 
                        States buyer consistent with the bid 
                        specifications in question.
                    ``(B) If the petitioner is an interested party, 
                described in section 871(17)(D), the petition shall 
                include information that members of the union or group 
                of workers are employed by a domestic producer that 
                meets the requirements of subparagraph (A) of this 
                section.
                    ``(C) If the petitioner is an interested party 
                described in section 871(17)(E), the petition shall 
                include information that a member of the association is 
                a domestic producer that meets the requirements of 
                subparagraph (A) of this section.
                    ``(D) If the petitioner is an interested party 
                described in section 871(17)(F), the petition shall 
                include information that a member of the association 
                meets the requirements of subparagraph (B) or (C) of 
                this section.
        The petition may be amended at such time, and upon such 
        conditions, as the administering authority and the Commission 
        may permit.
            ``(2) Simultaneous filing with commission.--The petitioner 
        shall file a copy of the petition with the Commission on the 
        same day as it is filed with the administering authority.
            ``(3) Deadline for filing petition.--
                    ``(A) (i) A petitioner to which paragraph 
                (b)(1)(A)(i) or (ii) of this section applies must file 
                the petition no later than the earlier of six months 
                after the time that the petitioner knew or should have 
                known of the sale of the vessel and six months after 
                delivery of the subject vessel.
                    ``(ii) A petitioner to which paragraph 
                (b)(1)(A)(iii) of this section applies must--
                            ``(I) file the petition no later than the 
                        earlier of nine months after the time that the 
                        petitioner knew or should have known of the 
                        sale of the vessel and six months after 
                        delivery of the subject vessel, and
                            ``(II) must submit to the administering 
                        authority a notice of intent to file a petition 
                        no later than six months after the time that 
                        petitioner knew or should have known of the 
                        sale (unless the petition itself is filed 
                        within the six-month period).
                    ``(B) For the purposes of paragraph (b)(3), if the 
                existence of the sale, together with general 
                information concerning the vessel, is published in the 
                international trade press, there is a rebuttable 
                presumption that the petitioner knew or should have 
                known of the sale of the vessel from the date of that 
                publication.
            ``(4) Action with respect to petitions.--
                    ``(A) Notification of governments.--Prior to 
                initiating an investigation under either paragraph (a) 
                or (b) of this section, the administering authority 
                shall notify the government of the exporting country 
                named in the petition. In the case of initiation under 
                paragraph (b) of this section, such notification shall 
                include a public version of the petition.
                    ``(B) Acceptance of communications.--The 
                administering authority shall not accept any 
                unsolicited oral or written communication from any 
                person other than an interested party described in 
                section 871(17) (C), (D), (E) or (F) before the 
                administering authority makes its decision whether to 
                initiate an investigation, except for inquiries 
                regarding the status of the administering authority's 
                consideration of the petition or a request for 
                consultation by the government of the exporting 
                country.
                    ``(C) Nondisclosure of certain information.--The 
                administering authority and the Commission shall not 
                disclose information with regard to any draft petition 
                submitted for review and comment before it is filed 
                under paragraph (1).
    ``(c) Petition Determination.--
            ``(1) Time for initial determination.--
                    ``(A) Within 45 days after the date on which a 
                petition is filed under subsection (b), the 
                administering authority shall, after examining, on the 
                basis of sources readily available to the administering 
                authority, the accuracy and adequacy of the evidence 
                provided in the petition, determine whether the 
                petition--
                            ``(i) alleges the elements necessary for 
                        the imposition of an injurious pricing charge 
                        under section 831 and the elements required 
                        under paragraph (b)(1) (A), (B), (C) or (D), 
                        and contains information reasonably available 
                        to the petitioner supporting the allegations, 
                        and
                            ``(ii) determine if the petition has been 
                        filed by or on behalf of the industry.
                    ``(B) Any period in which paragraph (6)(A) applies 
                shall not be counted for purposes of the deadline in 
                paragraph (1)(A).
            ``(2) Affirmative determinations.--If the determinations 
        under clauses (i) and (ii) of paragraph (1)(A) are affirmative, 
        the administering authority shall initiate an investigation to 
        determine whether the vessel was sold at less than fair value, 
        unless paragraph (6) (A) or (B) applies.
            ``(3) Negative determinations.--If--
                    ``(i) the determination under clause (i) or (ii) of 
                paragraph (1)(A) is negative, or
                    ``(ii) paragraph (6)(B) applies,
        the administering authority shall dismiss the petition, 
        terminate the proceeding, and notify the petitioner in writing 
        of the reasons for the determination.
            ``(4) Determination of industry support.--
                    ``(A) General rule.--For purposes of this 
                subsection, the administering authority shall determine 
                that the petition has been filed by or on behalf of the 
                domestic industry, if--
                            ``(i) the domestic producers or workers who 
                        support the petition collectively account for 
                        at least 25 percent of the total capacity of 
                        domestic producers capable of producing the 
                        like vessel, and
                            ``(ii) the domestic producers or workers 
                        who support the petition collectively account 
                        for more than 50 percent of the total capacity 
                        to produce the like vessel of that portion of 
                        the domestic industry expressing support for or 
                        opposition to the petition.
                    ``(B) Certain positions disregarded.--In 
                determining industry support under subparagraph (A), 
                the administering authority shall disregard the 
                position of domestic producers who oppose the petition, 
                if such producers are related to the foreign producer 
                or United States buyer, or the domestic producer is 
                itself the United States buyer, unless such domestic 
                producers demonstrate that their interests as domestic 
                producers would be adversely affected by the imposition 
                of an injurious pricing charge.
                    ``(C) Polling the industry.--If the petition does 
                not establish support of domestic producers or workers 
                accounting for more than 50 percent of the total 
                capacity to produce the like vessel, the administering 
                authority shall--
                            ``(i) poll the industry or rely on other 
                        information in order to determine if there is 
                        support for the petition as required by 
                        subparagraph (A), or
                            ``(ii) if there is a large number of 
                        producers in the industry, the administering 
                        authority may determine industry support for 
                        the petition by using any statistically valid 
                        sampling method to poll the industry.
                    ``(D) Comments by interested parties.--Before the 
                administering authority makes a determination with 
                respect to initiating an investigation, any person, who 
                would qualify as an interested party under section 
                871(17) if an investigation were initiated, may submit 
                comments or information on the issue of industry 
                support. After the administering authority makes a 
                determination with respect to initiating an 
                investigation, the determination regarding industry 
                support shall not be reconsidered.
            ``(5) Definition of domestic producers or workers.--For 
        purposes of this subsection, the term `domestic producers or 
        workers' means interested parties as defined in section 871(17) 
        (C), (D), (E), or (F).
            ``(6) Proceedings by wto members.--The administering 
        authority shall not initiate an investigation under this 
        section if, with respect to the vessel sale at issue in the 
        petition, an antidumping proceeding conducted by the 
        authorities of a WTO member who is not a Shipbuilding Agreement 
        Party--
                    ``(A) has been initiated and has been pending for 
                not more than one year, or
                    ``(B) has been completed and resulted in issuance 
                of an antidumping order, imposition of antidumping 
                duties, or a negative determination with respect to 
                whether the sale was at less than fair value or with 
                respect to injury.
    ``(d) Notification to Commission of Determination.--The 
administering authority shall--
            ``(1) notify the Commission immediately of any 
        determination it makes under subsection (a) or (c), and
            ``(2) if the determination is affirmative, make available 
        to the Commission such information as it may have relating to 
        the matter under investigation, under such procedures as the 
        administering authority and the Commission may establish to 
        prevent disclosure, other than with the consent of the party 
        providing it or under protective order, of any information to 
        which confidential treatment has been given by the 
        administering authority.

``SEC. 833. PRELIMINARY DETERMINATIONS.

    ``(a) Determination by Commission of Reasonable Indication of 
Injury.--
            ``(1) General rule.--Except in the case of a petition 
        dismissed by the administering authority under section 
        832(c)(3), the Commission, within the time specified in 
        paragraph (2), shall determine, based on the information 
        available to it at the time of the determination, whether there 
        is a reasonable indication that--
                    ``(A) an industry in the United States--
                            ``(i) is or has been materially injured, or
                            ``(ii) is threatened with material injury, 
                        or
                    ``(B) the establishment of an industry in the 
                United States is or has been materially retarded,
        by reason of the sale of the subject vessel. If the Commission 
        makes a negative determination under this paragraph, the 
        investigation shall be terminated.
            ``(2) Time for commission determination.--The Commission 
        shall make the determination described in paragraph (1) within 
        90 days after the date on which the petition is filed.
    ``(b) Preliminary Determination by Administering Authority.--
            ``(1) Period of injurious pricing investigation.--The 
        administering authority shall make a determination, based upon 
        the information available to it at the time of the 
        determination, of whether there is a reasonable basis to 
        believe or suspect that the vessel was sold at less than fair 
        value. Such determination shall be made--
                    ``(A) within 140 days after the completion of 
                construction of--
                            ``(i) the foreign like vessel, if cost data 
                        is required to determine normal value on the 
                        basis of a sale of a foreign like vessel that 
                        has not been delivered on or before the date on 
                        which the administering authority initiates the 
                        investigation, or
                            ``(ii) the subject vessel, if normal value 
                        is to be determined on the basis of constructed 
                        value, or
                    ``(B) within 140 days after the date on which the 
                administering authority initiates the investigation 
                under section 832, in cases in which paragraph (A) does 
                not apply, and
        in no event before an affirmative determination by the 
        Commission under subsection (a) of this section.
            ``(2) De minimis injurious pricing margin.--In making a 
        determination under this subsection, the administering 
        authority shall disregard any margin of injurious pricing that 
        is de minimis. For purposes of the preceding sentence, a margin 
        of injurious pricing is de minimis if the administering 
        authority determines that it is less than 2 percent expressed 
        as a percentage of the export price.
    ``(c) Extension of Period in Extraordinarily Complicated Cases or 
for Good Cause.--
            ``(1) In general.--
                    ``(A) If the administering authority concludes that 
                the parties concerned are cooperating and determines 
                that--
                            ``(i) the case if extraordinarily 
                        complicated by reason of--
                                    ``(I) the novelty of the issues 
                                presented, or
                                    ``(II) the nature and extent of the 
                                information required, and
                            ``(ii) additional time is necessary to make 
                        the preliminary determination, or
                            ``(iii) a party to the investigation 
                        requests an extension and demonstrates good 
                        cause for the extension,
                then the administering authority may postpone the time 
                for making the preliminary determination.
                    ``(B) The preliminary determination may be 
                postponed under paragraph (1) (A) or (B) until not 
                later than the 170th day after--
                            ``(i) under (b)(1)(A), the date of the 
                        completion of construction of the foreign like 
                        vessel or the subject vessel, as appropriate, 
                        or
                            ``(ii) under (b)(1)(B), the date on which 
                        the administering authority initiates an 
                        investigation under section 832.
            ``(2) Notice of postponement.--The administering party 
        shall notify the parties to the investigation, not later than 
        20 days before the date on which the preliminary determination 
        would otherwise be required under subsection (b)(1), if it 
        intends to postpone making the preliminary determination under 
        paragraph (1). The notification shall include an explanation of 
        the reasons for the postponement, and notice of the 
postponement shall be published in the Federal Register.
    ``(d) Effect of Determination by the Administering Authority.--If 
the preliminary determination of the administering authority under 
subsection (b) is affirmative, the administering authority shall--
            ``(1) determine an estimated injurious pricing margin, and
            ``(2) make available to the Commission all information upon 
        which its determination was based and which the Commission 
        considers relevant to its injury determination, under such 
        procedures as the administering authority and the Commission 
        may establish to prevent disclosure, other than with the 
        consent of the party providing it or under protective order, of 
        any information to which confidential treatment has been given 
        by the administering authority.
    ``(e) Notice of Determination.--Whenever the Commission or the 
administering authority makes a determination under this section, the 
Commission or the administering authority, as the case may be, shall 
notify the petitioner, and other parties to the investigation, and the 
Commission or the administering authority (whichever is appropriate) of 
its determination. The administering authority shall include with such 
notification the facts and conclusions on which its determination is 
based. Not later than 5 days after the date on which the determination 
is required to be made under subsection (a)(2), the Commission shall 
transmit to the administering authority the facts and conclusions on 
which its determination is based.

``SEC. 834. TERMINATION OR SUSPENSION OF INVESTIGATION.

    ``(a) Termination of Investigation Upon Withdrawal of Petition.--
            ``(1) In general.--Except as provided in paragraph (2), an 
        investigation under this subtitle may be terminated by either 
        the administering authority or the Commission, after notice to 
        all parties to the investigation, upon withdrawal of the 
        petition by the petitioner.
            ``(2) Limitation on termination by commission.--The 
        Commission may not terminate an investigation under paragraph 
        (1) before a preliminary determination is made by the 
        administering authority under section 833(b).
    ``(b) Termination of Investigations Initiated by Administering 
Authority.--The administering authority may terminate any investigation 
initiated by the administering authority under section 832(a) after 
providing notice of such termination to all parties to the 
investigation.
    ``(c) The criteria of paragraphs (A) through (D) of section 
837(e)(1) shall apply to any agreement that forms the basis for 
termination of an investigation under paragraph (a) or (b).
    ``(d) Proceedings by WTO Members.--
            ``(1) The administering authority and the Commission shall 
        suspend an investigation under this section if the authorities 
        of a WTO member that is not a Shipbuilding Agreement Party 
        initiate a bona fide antidumping proceeding with respect to the 
        sale of the subject vessel.
            ``(2) If such a proceeding is concluded by--
                    ``(A) issuance of an antidumping order,
                    ``(B) imposition of antidumping duties, or
                    ``(C) a negative determination with respect to 
                whether the sale is at less than fair value or with 
                respect to injury,
        the administering authority and the Commission shall terminate 
        the investigation under this section.
            ``(3)(A) if such a proceeding--
                    ``(i) is concluded by a result described in 
                paragraph (2) (A) or (B) and dumping duties are 
                assessed at less than an amount equal to the amount by 
                which the normal value exceeds the export price for the 
                subject vessel,
                    ``(ii) is concluded by a result other than a result 
                described in paragraph (2) (A), (B), or (C), or
                    ``(iii) is not concluded within one year from 
                initiation of the proceeding,
        then the administering authority and the Commission shall 
        terminate the suspension and continue the investigation. The 
        period in which the investigation was suspended shall not count 
        for purposes of calculating applicable deadlines for the 
        proceeding.
            ``(B) Notwithstanding paragraph (A)(ii), if the proceeding 
        is concluded by a result described in paragraph (2) (A) or (B), 
        the administering authority and the Commission shall terminate 
        the investigation under this section.

``SEC. 835. FINAL DETERMINATIONS.

    ``(a) Determinations by Administering Authority.--
            ``(1) In general.--Within 75 days after the date of its 
        preliminary determination under section 833(b), the 
        administering authority shall make a final determination of 
        whether the vessel which is the subject of the investigation 
        has been sold in the United States at less than its fair value.
            ``(2) Extension of period for determination.--If the 
        preliminary determination was not extended under section 
        833(c), the administering authority may postpone making the 
        final determination under paragraph (1) until not later than 
        the 130th day after the date of its preliminary determination 
        under section 833(b), if a request in writing for such 
        postponement is made by--
                    ``(A) the producer of the subject vessel, in a 
                proceeding in which the preliminary determination by 
                the administering authority under section 833(b) was 
                affirmative, or
                    ``(B) the petitioner, in a proceeding in which the 
                preliminary determination by the administering 
                authority under section 833(b) was negative.
            ``(3) De minimis injurious pricing margin.--In making a 
        determination under this subsection, the administering 
        authority shall disregard any injurious pricing margin that is 
        de minimis as defined in section 833(b)(3).
    ``(b) Final Determination by Commission.--
            ``(1) In general.--The Commission shall make a final 
        determination of whether--
                    ``(A) an industry in the United States--
                            ``(i) is or has been materially injured, or
                            ``(ii) is threatened with material injury, 
                        or
                    ``(B) the establishment of an industry in the 
                United States is or has been materially retarded,
        by reason of the sale of the vessel with respect to which the 
        administering authority has made an affirmative determination 
        under subsection (a)(1) of this section.
            ``(2) Period for injury determination following affirmative 
        preliminary determination by administering authority.--If the 
        preliminary determination by the administering authority under 
        section 833(b) is affirmative, then the Commission shall make 
        the determination required by paragraph (1) before the later 
        of--
                    ``(A) the 120th day after the day on which the 
                administering authority makes its affirmative 
                preliminary determination under section 833(b), or
                    ``(B) the 45th day after the day on which the 
                administering authority makes its affirmative final 
                determination under subsection (a).
            ``(3) Period for injury determination following negative 
        preliminary determination by administering authority.--If the 
        preliminary determination by the administering authority under 
        section 833(b) is negative, and its final determination under 
        subsection (a) is affirmative, then the final determination by 
        the Commission under this subsection shall be made within 75 
        days after the date of that affirmative final determination.
    ``(c) Effect of Final Determinations.--
            ``(1) Effect of affirmative determination by the 
        administering authority.--If the determination of the 
        administering authority under subsection (a) is affirmative, 
        then the administering authority shall--
                    ``(A) make available to the Commission all 
                information upon which such determination was based and 
                which the Commission considers relevant to its 
                determination, under such procedures as the 
                administering authority and the Commission may 
                establish to prevent disclosure, other than with the 
                consent of the party providing it or under protective 
                order, of any information to which 
confidential treatment has been given by the administering authority; 
and
                    ``(B) calculate an injurious pricing charge in an 
                amount equal to the amount by which the normal value 
                exceeds the export price of the vessel.
            ``(2) Issuance of order; effect of negative 
        determination.--If the determinations of the administering 
        authority and the Commission under subsections (a)(1) and 
        (b)(1) are affirmative, then the administering authority shall 
        issue an injurious pricing order under section 836. If either 
        of such determinations is negative, the investigation shall be 
        terminated upon the publication of notice of that negative 
        determination.
    ``(d) Publication of Notice of Determinations.--Whenever the 
administering authority or the Commission makes a determination under 
this section, it shall notify the petitioner, other parties to the 
investigation, and the other agency of its determination and of the 
facts and conclusions of law upon which the determination is based, and 
it shall publish notice of its determination in the Federal Register.
    ``(e) Correction of Ministerial Errors.--The administering 
authority shall establish procedures for the correction of ministerial 
errors in final determinations within a reasonable time after the 
determinations are issued under this section. Such procedures shall 
ensure opportunity for interested parties to present their views 
regarding any such errors. As used in this subsection, the term 
`ministerial error' includes errors in addition, subtraction, or other 
arithmetic function, clerical errors resulting from inaccurate copying, 
duplication, or the like, and any other type of unintentional error 
which the administering authority considers ministerial.

``SEC. 836. IMPOSITION AND COLLECTION OF INJURIOUS PRICING CHARGE.

    ``(a) In General.--Within 10 days after being notified by the 
Commission of an affirmative determination under section 835(b), the 
administering authority shall publish an order imposing an injurious 
pricing charge on the foreign producer which--
            ``(1) directs the producer of the subject vessel to pay to 
        the Secretary of the Treasury, or the designee of the 
        Secretary, within 180 days from the date of publication of the 
        order, an injurious pricing charge in an amount equal to the 
        amount by which the normal value exceeds the export price for 
        the vessel;
            ``(2) includes the identity and location of the producer 
        and a description of the vessel sold at less than fair value, 
        in such detail as the administering authority deems necessary; 
        and
            ``(3) informs the producer that--
                    ``(A) failure to pay the injurious pricing charge 
                in a timely fashion may result in the imposition of 
                countermeasures with respect to that producer under 
                section 837,
                    ``(B) payment made after the deadline in paragraph 
                (1) shall be subject to interest charges at the United 
                States dollar Commercial Interest Reference Rate 
                (CIRR), and
                    ``(C) the producer may request an extension of the 
                due date for payment, as described in subsection (b).
    ``(b) Extension of Due Date for Payment in Extraordinary 
Circumstances.--
            ``(1) Upon request, the administering authority may amend 
        the order to set a due date for payment or payments later than 
        the date that is 180 days from the date of publication of the 
        order, if it determines that full payment in 180 days would 
        render the producer insolvent or would be incompatible with a 
        judicially supervised reorganization. Payments made on an 
        extended schedule shall be subject to interest charges at the 
        United States dollar CIRR.
            ``(2) If a request is granted under paragraph (1), payments 
        made after the date that is 180 days from the publication of 
        the order shall be subject to interest charges.
    ``(c) The administering authority shall deliver a copy of the order 
requesting payment to the producer of the subject vessel and to an 
appropriate representative of the government of the exporting country.
    ``(d) The administering authority--
            ``(1) may revoke an injurious pricing order if the 
        administering authority determines that producers accounting 
        for substantially all of the production of the like product 
        have expressed a lack of interest in the order; and
            ``(2) shall revoke an injurious pricing order if--
                    ``(i) the sale of the subject vessel that was the 
                subject of the injurious pricing determination is 
                voided,
                    ``(ii) the charge is paid in full, including any 
                interest accrued for late payment,
                    ``(iii) upon full implementation of an alternative 
                equivalent remedy described in (e), or
                    ``(iv) with respect to the vessel sale that was at 
                issue in the investigation that resulted in the 
                injurious pricing order, an antidumping proceeding 
                conducted by the authorities of a WTO member who is not 
                a Shipbuilding Agreement Party has been completed and 
                resulted in issuance of an antidumping order or 
                imposition of antidumping duties.
    ``(e) Alternative Equivalent Remedy.--
            ``(1) The administering authority may suspend an injurious 
        pricing order if the authority enters into an agreement with 
        the producer on an alternative equivalent remedy, that the 
        administering authority determines--
                    ``(A) is at least as effective a remedy as the 
                injurious pricing charge;
                    ``(B) is in the public interest;
                    ``(C) can be effectively monitored and enforced; 
                and
                    ``(D) is otherwise consistent with the domestic law 
                and international obligations of the United States.
            ``(2) Prior to entering into an agreement under paragraph 
        (1), the administering authority shall consult with the 
        domestic industry, provide for submission of comments by 
        interested parties, and obtain the approval of the petitioners 
        for such agreement.
            ``(3) If the injurious pricing order has been suspended 
        under paragraph (1), and the administering authority determines 
        that the producer has materially violated the terms of 
        agreement, the administering authority shall terminate the 
        suspension.

``SEC. 837. IMPOSITION OF COUNTERMEASURES.

    ``(a) General Rule.--
            ``(1) Unless an injurious pricing order is revoked or 
        suspended under section 836 (d) or (e), the administering 
        authority shall issue an order imposing countermeasures.
            ``(2) The countermeasure order shall--
                    ``(A) state that, as provided in section 468 of 
                this Act, a permit to lade or unlade passengers or 
                merchandise may not be issued with respect to vessels 
                contracted to be built by the foreign producer of the 
                vessel with respect to which an injurious pricing order 
                was issued under section 836, and
                    ``(B) specify the scope and duration of the 
                prohibition on issuance of a permit to lade or unlade 
                passengers or merchandise.
    ``(b) Preliminary Determination To Impose Countermeasures.--
            ``(1) General rule.--The administering authority shall 
        issue a preliminary determination to impose countermeasures 
        within 7 days after the expiration of the time for payment 
        specified in the order, and shall publish that determination in 
        the Federal Register within 7 days after issuance.
            ``(2) Elements of the preliminary determination.--The 
        preliminary determination shall contain at least the following 
        elements:
                    ``(A) Scope.--A permit to lade or unlade passengers 
                or merchandise may not be issued with respect to any 
                vessel, built by the foreign producer, for which the 
                material terms of sale are established (normally the 
                date of contract) within a period of four consecutive 
                years beginning on the effective date in paragraph (C).
                    ``(B) Duration.--For each vessel within the scope 
                described in paragraph (A), a permit to lade or unlade 
                passengers or merchandise may not be issued for a 
                period of four years after delivery of the vessel.
                    ``(C) Effective date.--The effective date of a 
                preliminary determination shall be 30 days after 
                publication of such determination in the Federal 
                Register.
    ``(c) Final Determination To Impose Countermeasures; Order.--
            ``(1) General rule.--The administering authority shall, 
        within the time specified in paragraph (2) of this subsection, 
        issue a final determination and order imposing countermeasures.
            ``(2) Time for final determination.--The final 
        determination shall be issued within 90 days after the date on 
        which the preliminary determination to impose countermeasures 
        under subsection (b) is published in the Federal Register. The 
        administering authority shall publish the final determination, 
and the order described in paragraph (4), in the Federal Register 
within 7 days, and shall provide a copy of the determination and order 
to the Customs Service.
            ``(3) Content of the final determination.--In the final 
        determination imposing countermeasures the administering 
        authority shall determine whether, in light of all of the 
        circumstances, and interested party has demonstrated that the 
        scope or duration of the countermeasures should be narrowed or 
        shortened.
            ``(4) Order.--At the same time it issues its final 
        determination, the administering authority shall issue an order 
        imposing countermeasures, consistent with its final 
        determination.
    ``(d) Administrative Review of Final Determination To Impose 
Countermeasures.--
            ``(1) Request for review.--Annually, in the anniversary 
        month of the issuance of the order imposing countermeasures 
        under this title, the administering authority shall publish in 
        the Federal Register a notice providing that interested parties 
        may request--
                    ``(A) a review of the scope or duration of 
                countermeasures, and
                    ``(B) a hearing in connection with such a review.
            ``(2) Review.--If a proper request has been received under 
        paragraph (1), the administering authority shall--
                    ``(A) publish notice of initiation of a review in 
                the Federal Register not later than 15 days following 
                the anniversary month of the issuance of the order 
                imposing countermeasures, and
                    ``(B) shall review and determine whether the 
                requesting party has demonstrated that the scope or 
                duration of the countermeasures is excessive in light 
                of all of the circumstances.
            ``(3) Time for review.--The administering authority shall 
        make its determination under paragraph (2)(B) within 90 days 
        after the date of which the notice of initiation of such review 
        is published. If the determination under paragraph (2)(B) is 
        affirmative, the administering authority shall amend the order 
        accordingly. The administering authority shall promptly publish 
        the determination and any amendment to the order in the Federal 
        Register, and shall provide a copy of any amended order to the 
        Customs Service. In extraordinary circumstances, the 
        administering authority may extend the time for its 
        determination under paragraph (2)(B) to not later than 150 days 
        after the date on which the notice of initiation of such review 
        is published.
    ``(e) Extension of Countermeasures.--
            ``(1) Request for extension.--Within the time described in 
        paragraph (2), an interested party may file with the 
        administering authority a request that the scope or duration of 
        countermeasures be extended.
            ``(2) Deadline for request for extension.--
                    ``(A) If the request seeks an extension that would 
                cause the scope or duration of countermeasures to 
                exceed four years, including any prior extensions, a 
                request for extension under paragraph (1) shall be 
                filed not earlier than the date that is 15 months, and 
                not later than the date that is 12 months, before the 
                date that marks the end of the period that defines the 
                vessels that fall within the scope of the order.
                    ``(B) If the request seeks an extension under 
                paragraph (1) other than one described in paragraph 
                (A), a request shall be filed not earlier than the date 
                that is 6 months, and not later than a date that is 3 
                months, before the date that marks the end of the 
                period that defines the vessels that fall within the 
                scope of the order.
            ``(3) Determination.--If a proper request has been received 
        under paragraph (1), the administering authority shall--
                    ``(A) publish notice of initiation of an extension 
                proceeding in the Federal Register not later than 15 
                days following the applicable deadline in paragraph (2) 
                for requesting the extension.
                    ``(B) (i) if paragraph (2)(A) applies to the 
                request, consult with the Trade Representative, as 
                described in paragraph (4), or
                    ``(ii) if paragraph (2)(B) applies to the request, 
                determine, within 90 days from the date on which the 
                notice of initiation of the proceeding was published, 
                whether the requesting party has demonstrated that the 
                scope or duration of the countermeasures is inadequate 
                in light of all of the circumstances. If the 
                administering authority determines that an extension 
is warranted, it shall amend the countermeasure order accordingly. The 
administering authority shall promptly publish the determination and 
any amendment to the order in the Federal Register, and shall provide a 
copy of any amended order to the Customs Service.
            ``(4) Consultation with trade representative.--If paragraph 
        (3)(B)(i) applies, the administering authority shall consult 
        with the Trade Representative concerning whether it would be 
        appropriate to request establishment of a dispute settlement 
        panel under the Shipbuilding Agreement for the purpose of 
        seeking authorization to extend the scope or duration of 
        countermeasures for a period in excess of four years.
            ``(5) Decision not to request panel.--If, based on 
        consultations under paragraph (4), the Trade Representative 
        decides not to request establishment of a panel, the Trade 
        Representative will inform the party requesting the extension 
        of the countermeasures of the reasons for its decision in 
        writing. The decision will not be judicially reviewable.
            ``(6) Panel proceedings.--If, based on consultations under 
        paragraph (4), the Trade Representative requests the 
        establishment of a panel under the Shipbuilding Agreement, and 
        the panel authorizes an extension of the period of 
        countermeasures, the administering authority shall promptly 
        amend the countermeasure order in accordance with the panel's 
        authorization. The administering authority shall publish notice 
        of the amendment in the Federal Register.
    ``(f) List of Vessels Subject to Countermeasures.--
            ``(1) General rule.--At least once during each 12-month 
        period beginning on the anniversary date of a final 
        determination to impose countermeasures under this section, the 
        administering authority shall publish in the Federal Register a 
        list of all delivered vessels subject to countermeasures.
            ``(2) Content of list.--The list under paragraph (1) shall 
        include the following information for each vessel, to the 
        extent the information is available--
                    ``(A) name and general description of vessel;
                    ``(B) vessel identification number;
                    ``(C) shipyard where vessel was constructed;
                    ``(D) last-known registry of vessel;
                    ``(E) last-known owner of vessel, and address of 
                owner;
                    ``(F) delivery date of vessel;
                    ``(G) remaining duration of countermeasures on 
                vessel; and
                    ``(H) any other identifying information available.
            ``(3) Amendment of list.--The administering authority may 
        amend the list from time to time to reflect new information 
        that comes to its attention and shall publish any amendments in 
        the Federal Register.
            ``(4) Service of list and amendments.--(A) The 
        administering authority shall serve a copy of the list 
        described in paragraph (1) on--
                    ``(i) the petitioner,
                    ``(ii) the United States Customs Service,
                    ``(iii) the OECD Secretariat,
                    ``(iv) owners of listed vessels,
                    ``(v) shipyards listed, and
                    ``(vi) the government of the country in which a 
                listed shipyard is located.
            ``(B) The administering authority shall serve a copy of any 
        amendments to the list under paragraph (3) or subsection (g)(3) 
        on--
                    ``(i) the parties listed in paragraphs (A) (i), 
                (ii), and (iii), and
                    ``(ii) if the amendment affects their interests, 
                the parties listed in paragraphs (A) (iv), (v), and 
                (vi).
    ``(g) Administrative Review of List of Vessels Subject to 
Countermeasures.--
            ``(1) Request for review.--(A) An interested party may 
        request in writing a review of the list described in paragraph 
        (g)(1), including any amendments thereto, to determine 
        whether--
                    ``(i) a vessel included in the list does not fall 
                within the scope of the countermeasure order and should 
                be deleted; or
                    ``(ii) a vessel not included in the list falls 
                within the scope of the countermeasure order and should 
                be added.
            ``(B) Any request seeking a determination described in 
        paragraph (1)(A)(i) shall be made within 90 days from 
        publication of the list in which the vessel at issue first 
        appears.
            ``(2) Review.--If a proper request for review has been 
        received, the administering authority shall--
                    ``(A) publish notice of initiation of a review in 
                the Federal Register--
                            ``(i) not later than 15 days after receipt 
                        of the request or,
                            ``(ii) if the request seeks a determination 
                        described in paragraph (1)(A)(i), not later 
                        than 15 days after the deadline in paragraph 
                        (1)(B), and
                    ``(B) review and determine whether the requesting 
                party has demonstrated that--
                            ``(i) a vessel included in the list does 
                        not qualify for such inclusion; or
                            ``(ii) a vessel not included in the list 
                        qualifies for inclusion.
            ``(3) Time for determination.--The administering authority 
        shall make its determination under paragraph (2)(B) within 90 
        days after the date on which the notice of initiation of such 
        review is published. If the administering authority determines 
        that a vessel should be added or deleted from the list, the 
        administering authority shall amend the list accordingly. The 
        administering authority shall promptly publish the 
        determination and any amendment to the list in the Federal 
        Register.
    ``(h) Expiration of Countermeasures.--Upon expiration of a 
countermeasure order imposed under this section, the administering 
authority shall promptly publish a notice of the expiration in the 
Federal Register.
    ``(i) Suspension or Termination of Proceedings or Countermeasures; 
Temporary Reduction of Countermeasures.--
            ``(1) If an injurious pricing order has been suspended or 
        revoked under section 836 (d) or (e), the administering 
        authority shall, as appropriate, suspend or terminate 
        proceedings under this section, or suspend or revoke a 
        countermeasure order.
            ``(2)(A) If the payment date under an injurious pricing 
        order has been amended under section 884, the administering 
        authority shall, as appropriate, suspend proceedings or modify 
        deadlines under this section, or suspend or amend a 
        countermeasure order.
            ``(B) In taking action under paragraph (A), the 
        administering authority shall ensure that countermeasures are 
        not applied prior to the date that is 30 days after publication 
        in the Federal Register of the amended payment date.
            ``(C) If--
                    ``(i) a final countermeasure order has been issued 
                pursuant to subsection (c) prior to an amendment under 
                section 884 to the payment date of an injurious pricing 
                order, and
                    ``(ii) the administering authority determines that 
                the period of time between the original payment date 
                and the amended payment date is significant for 
                purposes of determining the appropriate scope or 
                duration of countermeasures,
        the administering authority may reinstitute proceedings under 
        subsection (c) for purposes of issuing a new final 
        determination under that subsection.
    ``(j) Comment and Hearing.--In the course of any proceeding under 
subsection (c), (d), (e), or (g), the administering authority--
            ``(1) shall solicit comments from interested parties; and
            ``(2)(A) in a proceeding under subsection (c) or (d), upon 
        request of an interested party, shall hold a hearing in 
        accordance with section 874(b) in connection with that 
        proceeding, or
            ``(B) in a proceeding under subsection (e) or (g), upon 
        request of an interested party, may hold a hearing in 
accordance with section 874(b) in connection with that proceeding.

``SEC. 871. DEFINITIONS; SPECIAL RULES.

    ``For purposes of this title:
            ``(1) Administering authority.--The term `administering 
        authority' means the Secretary of Commerce, or any other 
        officer of the United States to whom the responsibility for 
        carrying out the duties of the administering authority under 
        this title are transferred by law.
            ``(2) Commission.--The term `Commission' means the United 
        States International Trade Commission.
            ``(3) Country.--The term `country' means a foreign country, 
        a political subdivision, dependent territory, or possession of 
        a foreign country and, except as provided in section 
        871(16)(E)(iii), may not include an association of two or more 
        foreign countries, political subdivisions, dependent 
        territories, or possessions of countries into a customs union 
        outside the United States.
            ``(4) Industry.--
                    ``(A) In general.--The term `industry' means the 
                producers as a whole of a domestic like vessel, or 
                those producers whose collective capability to produce 
                a domestic like vessel constitutes a major proportion 
                of the total domestic capability to produce a domestic 
                like vessel.
                    ``(B) Producer.--A `producer' of a like vessel 
                includes entities that are producing a domestic like 
                vessel and those with capability to produce a domestic 
                like vessel.
                    ``(C) Capability to produce a like vessel.--A 
                producer has `capability to produce a like vessel' if 
                it is capable of producing a domestic like vessel with 
                its present facilities or could adapt its facilities in 
                a timely manner to produce a domestic like vessel.
                    ``(D) Related parties.--
                            ``(i) If a producer of a domestic like 
                        vessel and the foreign producer, seller (other 
                        than the foreign producer) or United States 
                        buyer of the subject vessel are related 
                        parties, or if a producer of a domestic like 
                        vessel is also a United States buyer of the 
                        subject vessel, the domestic producer may, in 
                        appropriate circumstances, be excluded from the 
                        industry.
                            ``(ii) For purposes of clause (i), a 
                        domestic producer and the foreign producer, 
                        seller or United States buyer shall be 
                        considered to be related parties, if--
                                    ``(I) the domestic producer 
                                directly or indirectly controls the 
                                foreign producer, seller or United 
                                States buyer,
                                    ``(II) the foreign producer, seller 
                                or United States buyer directly or 
                                indirectly controls the domestic 
                                producer,
                                    ``(III) a third party directly or 
                                indirectly controls the domestic 
                                producer and the foreign producer, 
                                seller or United States buyer, or
                                    ``(IV) the domestic producer and 
                                the foreign producer, seller or United 
                                States buyer directly or indirectly 
                                control a third party and there is 
                                reason to believe that the relationship 
                                causes the producer to act differently 
                                than a nonrelated producer.
                        For purposes of this subparagraph, a party 
                        shall be considered to directly or indirectly 
                        control another party if the party is legally 
                        or operationally in a position to exercise 
                        restraint or direction over the other party.
                    ``(E) Product lines.--The effect of the sale of the 
                subject vessel shall be assessed in relation to the 
                United State production (or production capability) of 
                the domestic like vessel if available data permit the 
                separate identification of production (or production 
                capability) in terms of such criteria as the production 
                process or the producer's profits. If the domestic 
                production (or production capability) of the domestic 
                like vessel has not separate identity in terms of such 
                criteria, then the effect of the same shall be assessed 
                by the examination of the production (or production 
                capability) of the narrowest group or range of vessels, 
                which includes a domestic like vessel, for which the 
                necessary information can be provided.
            ``(5) Buyer.--The term `buyer' means any person who 
        acquires an ownership interest in the vessel, including by way 
        of lease or long-term bareboat charter, in conjunction with the 
        original transfer from the producer, either directly or 
        indirectly, including an individual or company which owns or 
        controls a buyer. There may be more than one buyer of any one 
        vessel. When the reconstruction of an existing vessel is 
        involved, the term `buyer' shall also encompass the owner of 
        the vessel.
            ``(6) United states buyer.--The term `United States buyer' 
        means a buyer that is--
                    ``(A) a United States citizen, or
                    ``(B) a juridical entity, including any 
                corporation, company, association or other 
                organization, that is legally constituted under the 
                laws and regulations of the United States or a 
                political subdivision thereof, regardless of whether 
                the entity is organized for pecuniary gain, private or 
                government owned, or organized with limited or 
                unlimited liability, or
                    ``(C) a juridical entity that is owned or 
                controlled by nationals or entities described in 
                subparagraphs (A) and (B). For the purposes of this 
                subparagraph--
                            ``(i) the term `own' means having more than 
                        a fifty percent interest; and
                            ``(ii) the term `control' means the actual 
                        ability to have substantial influence on 
                        corporate behavior. Control is presumed to 
                        exist where there is a twenty-five percent 
                        interest. If ownership of a company is 
                        established, other control is presumed not to 
                        exist unless it is established otherwise.
            ``(7) Ownership interest.--The term `ownership interest' 
        includes any contractual or proprietary interest which allows 
        the beneficiary or beneficiaries of such interest to take 
        advantage of the operation of the vessel in a manner 
        substantially comparable to the way in which an owner may 
        benefit from the operation of the vessel. In determining 
        whether such substantial comparability exists, the 
        administering authority shall consider the following factors--
                    ``(A) the terms and circumstances of the 
                transaction;
                    ``(B) commercial practice;
                    ``(C) whether the vessel subject to the transaction 
                is integrated into the operations of the beneficiary or 
                beneficiaries; and
                    ``(D) whether in practice there is a likelihood 
                that the beneficiary or beneficiaries of such interests 
                will take advantage of and the risk for the operation 
                of the vessel for a significant part of the life-time 
                of the vessel.
            ``(8) Vessel.--
                    ``(A) In general.--The term `vessel' means
                            ``(i) a self-propelled seagoing vessel of 
                        100 gross tons or more used for transportation 
                        of goods or persons or for performance of a 
                        specialized service (such as ice breakers and 
                        dredgers), and
                            ``(ii) tugs of 365 kw and over.
                    ``(B) the term `vessel' does not include--
                            ``(i) fishing vessels destined for the 
                        fishing fleet of the country in which the 
                        vessel is built;
                            ``(ii) military vessels; and
                            ``(iii) vessels sold prior to the date that 
                        the Shipbuilding Agreement enters into force 
                        for the United States, except that vessels sold 
                        after December 21, 1994, for delivery more than 
                        5 years after the date of contract are included 
                        unless the shipbuilder demonstrates to the 
                        administering authority that the extended 
                        delivery date was for normal commercial reasons 
                        and not to avoid applicability of the injurious 
                        pricing law.
                    ``(C) A vessel is `self-propelled seagoing' if its 
                permanent propulsion and steering provide it all the 
                characteristics of self-navigability in the high seas.
                    ``(D) A `military vessel' is a vessel which, 
                according to its basic structural characteristics and 
                ability, is intended to be used exclusively for 
                military purposes.
                    ``(E) The term `vessel' may mean more than one 
                vessel in appropriate circumstances.
            ``(9) Like vessel.--The term `like vessel' means a vessel 
        of the same type, purpose and approximate size as the subject 
        vessel and possessing characteristics closely resembling those 
        of the subject vessel. There may be small differences in size 
        and equipment between like vessels.
            ``(10) Domestic like vessel.--The term `domestic like 
        vessel' means a like vessel produced in the United States.
            ``(11) Foreign like vessel.--The term `foreign like vessel' 
        means a like vessel produced by the producer of the subject 
        vessel for sale in the producer's domestic market or in a third 
        country.
            ``(12) Same general category of vessel.--The term `same 
        general category of vessel' means a vessel of the same type 
and purpose as the subject vessel, but of a significantly different 
size.
            ``(13) Subject vessel.--The term `subject vessel' means a 
        vessel subject to investigation pursuant to section 831.
            ``(14) Foreign producer.--The term `foreign producer' means 
        the producer or producers of the subject vessel.
            ``(15) Exporting country.--The term `exporting country' 
        means the country in which the subject vessel was built.
            ``(16) Material injury.--
                    ``(A) In general.--The term `material injury' means 
                harm which is not inconsequential, immaterial, or 
                unimportant.
                    ``(B) Sale and consequent impact.--In making 
                determinations under sections 833(a) and 835(b), the 
                Commission in each case--
                            ``(i) shall consider--
                                    ``(I) the effect of the sale of the 
                                subject vessel on prices in the United 
                                States for domestic like vessels, and
                                    ``(II) the impact of the sale of 
                                such vessel on domestic producers of 
                                domestic like vessels, but only in the 
                                context of production operations within 
                                the United States; and
                            ``(ii) may consider such other economic 
                        factors as are relevant to the determination 
                        regarding whether there is or has been material 
                        injury by reason of the sale of the subject 
                        vessel.
                In the notification required under section 835(d), the 
                Commission shall explain its analysis of each factor 
                considered under clause (i), and identify each factor 
                considered under clause (ii) and explain in full its 
                relevance to the determination.
                    ``(C) Evaluation of relevant factors.--For purposes 
                of subparagraph (B)--
                            ``(i) Price.--In evaluating the effect of 
                        the sale of the subject vessel on prices, the 
                        Commission shall consider whether--
                                    ``(I) there has been significant 
                                price underselling of the subject 
                                vessel as compared with the price of 
                                domestic like vessels, and
                                    ``(II) the effect of the sale of 
                                the subject vessel otherwise depresses 
                                or has depressed prices to a 
                                significant degree or prevents or has 
                                prevented price increases, which 
                                otherwise would have occurred, to a 
                                significant degree.
                            ``(ii) Impact on affected domestic 
                        industry.--In examining the impact required to 
                        be considered under subparagraph (b)(i)(II) the 
                        Commission shall evaluate all relevant economic 
                        factors which have a bearing on the state of 
                        the industry in the United States, including, 
                        but not limited to--
                                    ``(I) actual and potential decline 
                                in output, sales, offers for sale, 
                                market share, profits, productivity, 
                                return on investments, and utilization 
                                of capacity,
                                    ``(II) factors affecting domestic 
                                prices, including with regard to sales 
                                or offers for sales,
                                    ``(III) actual and potential 
                                negative effects on cash flow, 
                                employment, wages, growth, ability to 
                                raise capital, and investment,
                                    ``(IV) actual and potential 
                                negative effects on the existing 
                                development and production efforts of 
                                the domestic industry, including 
                                efforts to develop a derivative or more 
                                advanced version of the domestic like 
                                vessel, and
                                    ``(V) the magnitude of the 
                                injurious pricing margin.
                        The Commission shall evaluate all relevant 
                        economic factors described in this clause 
                        within the context of the business cycle and 
                        conditions of competition that are distinctive 
                        to the affected industry.
                    ``(D) Standard for determination.--The presence or 
                absence of any factor which the Commission is required 
                to evaluate under subparagraph (C) shall not 
                necessarily give decisive guidance with respect to the 
                determination by the Commission of material injury.
                    ``(E) Threat of material injury.--
                            ``(i) In general.--In determining whether 
                        an industry in the United States is threatened 
                        with material injury by reason of sale of the 
                        subject vessel, the Commission shall consider, 
                        among other relevant economic factors--
                                    ``(I) any existing unused 
                                production capacity or imminent, 
                                substantial increase in production 
                                capacity in the exporting country 
                                indicating the likelihood of one or 
                                more sales of foreign like vessels to 
                                United States buyers, taking into 
                                account the availability of other 
                                export markets to absorb any additional 
                                exports,
                                    ``(II) whether the sale of the 
                                foreign like vessel or other factors 
                                indicate the likelihood of significant 
                                additional sales to United States 
                                buyers,
                                    ``(III) whether sale of the subject 
                                vessel or sales of the foreign like 
                                vessel by the foreign producer are at 
                                prices that are likely to have a 
                                significant depressing or suppressing 
                                effect on domestic prices, and are 
                                likely to increase demand for further 
                                sales,
                                    ``(IV) the potential for product-
                                shifting if production facilities in 
                                the exporting country, which can 
                                presently be used to produce foreign 
                                like vessels or could be adapted in a 
                                timely manner to produce foreign like 
                                vessels, are currently being used to 
                                produce other types of vessels,
                                    ``(V) the actual and potential 
                                negative effects on the existing 
                                development and production efforts of 
                                the domestic industry, including 
                                efforts to develop a derivative or more 
                                advanced version of the domestic like 
                                vessel, and
                                    ``(VI) any other demonstrable 
                                adverse trends that indicate the 
                                probability that there is likely to be 
                                material injury by reason of the sale 
                                of the subject vessel.
                            ``(ii) Basis for determination.--The 
                        Commission shall consider the factors set forth 
                        in clause (i) as a whole. The presence or 
                        absence of any factor which the Commission is 
                        required to consider under clause (i) shall not 
                        necessarily give decisive guidance with respect 
                        to the determination. Such a determination may 
                        not be made on the basis of mere conjecture or 
                        supposition.
                            ``(iii) Effect on injurious pricing in 
                        third-country markets.--
                                    ``(I) In general.--The Commission 
                                shall consider whether injurious 
                                pricing in the markets of foreign 
                                countries (as evidenced by injurious 
                                pricing findings or injurious pricing 
                                remedies in other Shipbuilding 
                                Agreement Party markets, or antidumping 
                                findings or remedies in other 
                                countries, against like vessels 
                                produced by the producer under 
                                investigation) suggests a threat of 
                                material injury to the domestic 
                                industry. In the course of its 
                                investigation, the Commission shall 
                                request information from the foreign 
                                producer or United States buyer 
                                concerning this issue.
                                    ``(II) European communities.--For 
                                purposes of this clause, the European 
                                communities as a whole shall be treated 
                                as a single foreign country.
                    ``(F) Cumulation for determining material injury.--
                            ``(i) In general.--For purposes of clause 
                        (i) of subparagraph (C), and subject to clause 
                        (ii), the Commission shall cumulatively assess 
                        the effects of sales of foreign like vessels 
                        subject to investigation from all foreign 
                        producers if, with respect to such vessels, the 
                        foreign producers compete with each other and 
                        with producers of domestic like vessels in the 
                        United States market.
                            ``(ii) Exceptions.--The Commission shall 
                        not cumulatively assess the effects of sales 
                        under clause (i)--
                                    ``(I) with respect to which the 
                                administering authority has made a 
                                preliminary negative determination, 
                                unless the administering authority 
                                subsequently made a final affirmative 
                                determination with respect to those 
                                sales before the Commission's final 
                                determination is made; or
                                    ``(II) from any producer with 
                                respect to which the investigation has 
                                been terminated.
                            ``(iii) Records in final investigations.--
                        In each final determination in which it 
                        cumulatively assesses the effects of sales 
                        under clause (i), the Commission may make its 
                        determinations based on the record compiled in 
                        the first investigation in which it makes a 
                        final determination, except that when the 
                        administering authority issues its final 
                        determination in a subsequently completed 
                        investigation, the Commission shall permit the 
                        parties in the subsequent investigation to 
                        submit comments concerning the significance of 
                        the administering authority's final 
                        determination, and shall include such comments 
                        and the administering authority's final 
                        determination in the record for the subsequent 
                        investigation.
                    ``(G) Cumulation for determining threat of material 
                injury.--To the extent practicable and subject to 
                subparagraph (F)(ii), for purposes of clause (i)(II) 
                and (III) of subparagraph (E), the Commission may 
                cumulatively assess the effects of sales of like 
                vessels subject to investigation from all countries if, 
                with respect to such vessels, the foreign producers 
                compete with each other and with producers of domestic 
                like vessels in the United States market.
            ``(17) Interested party.--The term `interested party' 
        means--
                    ``(A) the foreign producer, seller (other than the 
                foreign producer) and the United States buyer of the 
                subject vessel, or a trade or business association, a 
                majority of the members of which are the foreign 
                producer, seller or United States buyer;
                    ``(B) the government of the country in which the 
                subject vessel is produced or manufactured;
                    ``(C) a producer that is a member of an industry 
                defined in paragraph (4) of this section;
                    ``(D) a certified union or recognized union or 
                group of workers which is representative of an industry 
                defined in paragraph (4) of this section;
                    ``(E) a trade or business association, a majority 
                of whose members are producers in an industry described 
                in paragraph (4) of this section;
                    ``(F) an association, a majority of whose members 
                is composed of interested parties described in 
                subparagraph (C), (D), or (E); and
                    ``(G) for purposes of section 837, a purchaser who, 
                after the effective date of an order issued under that 
                section, entered into a contract of sale with the 
                foreign producer of the subject vessel.
            ``(18) Affirmative determinations by divided commission.--
        If the Commissioners voting on a determination by the 
        Commission are evenly divided as to whether the determination 
        should be affirmative or negative, the Commission shall be 
        deemed to have made an affirmative determination. For the 
        purpose of applying this paragraph when the issue before the 
        Commission is to determine whether there is or has been--
                    ``(A) material injury to an industry in the United 
                States,
                    ``(B) threat of material injury to such an 
                industry, or
                    ``(C) material retardation of the establishment of 
                an industry in the United States,
        by reason of sale of the subject vessel, an affirmative vote on 
        any of the issues shall be treated as a vote that the 
        determination should be affirmative.
            ``(19) Ordinary course of trade.--The term `ordinary course 
        of trade' means the conditions and practices which, for a 
        reasonably time prior to the sale of the subject vessel, have 
        been normal in the shipbuilding industry with respect to like 
vessels. The administering authority shall consider the following sales 
and transactions, among others, to be outside the ordinary course of 
trade--
                    ``(A) sales disregarded under section 873(b)(1); or
                    ``(B) sales disregarded under section 873(f)(2).
            ``(20) Shipbuilding agreement.--The term `Shipbuilding 
        Agreement' means the OECD Agreement Respecting Normal 
        Competitive Conditions in the Commercial Shipbuilding and 
        Repair Industry.
            ``(21) Shipbuilding agreement party.--The term 
        `Shipbuilding Agreement Party' means a state or separate 
        customs territory that is a party to the Shipbuilding 
        Agreement, and with respect to which the United States applies 
        the Shipbuilding Agreement.
            ``(22) WTO agreement.--The term `WTO Agreement' means the 
        Agreement defined in section 2(9) of the Uruguay Round 
        Agreements Act.
            ``(23) WTO member.--The term `WTO member' means a state, or 
        separate customs territory (within the meaning of Article XII 
        of the WTO Agreement), with respect to which the United States 
        applies the WTO Agreement.
            ``(24) Trade representative.--The term `Trade 
        Representative' means the United States Trade Representative.
            ``(25) Affiliated persons.--The following persons shall be 
        considered to be `affiliated' or `affiliated persons':
                    ``(A) Members of a family, including brothers and 
                sisters (whether by the whole or half blood), spouse, 
                ancestors, and lineal descendants.
                    ``(B) Any officer or director of an organization 
                and such organization.
                    ``(C) Partners.
                    ``(D) Employer and employee.
                    ``(E) Any person directly or indirectly owning, 
                controlling, or holding with power to vote, 5 percent 
                or more of the outstanding voting stock or shares of 
                any organization and such organization.
                    ``(F) Two or more persons directly or indirectly 
                controlling, controlled by, or under common control 
                with, any person.
                    ``(G) Any person who controls any other person and 
                such other person.
        For purposes of this paragraph, a person shall be considered to 
        control another person if the person is legally or 
        operationally in a position to exercise restraint or direction 
        over the other person.
            ``(26) Injurious pricing.--The term `injurious pricing' 
        refers to the sale of a vessel at less than fair value.
            ``(27) Injurious pricing margin.--
                    ``(A) The term `injurious pricing margin' means the 
                amount by which the normal value exceeds the export 
                price of the subject vessel.
                    ``(B) Magnitude of the injurious pricing margin. 
                The magnitude of the injurious pricing margin used by 
                the Commission shall be--
                            ``(i) in making a preliminary determination 
                        under section 833(a) in an investigation 
                        (including any investigation in which the 
                        Commission cumulatively assesses the effect of 
                        sales under paragraph (16)(F)(i)), the 
                        injurious pricing margin or margins published 
                        by the administering authority in its notice of 
                        initiation of the investigation; and
                            ``(ii) in making a final determination 
                        under section 835(b), the injurious pricing 
                        margin or margins most recently published by 
                        the administering authority prior to the 
                        closing of the Commission's administrative 
                        record.
            ``(28) Commercial interest reference rate.--The term 
        `Commercial Interest Reference Rate' or `CIRR' means an 
        interest rate the administering authority determines to be 
        consistent with Annex III, and appendices and notes thereto, of 
        the Understanding on Export Credits for Ships (OECD document C/
        WP6(94)6), and any amendments thereto.
            ``(29) Nonmarket economy country.--
                    ``(A) In general.--The term `nonmarket economy 
                country' means any foreign country that the 
                administering authority determines does not operate on 
                market principles of cost or pricing structures, so 
                that sales of vessels do not reflect the fair value of 
                the vessels.
                    ``(B) Factors to be considered.--In making 
                determinations under subparagraph (A) the administering 
                authority shall take into account--
                            ``(i) the extent to which the currency of 
                        the foreign country is convertible into the 
                        currency of other countries,
                            ``(ii) the extent to which wage rates in 
                        the foreign country are determined by free 
                        bargaining between labor and management,
                            ``(iii) the extent to which joint ventures 
                        or other investments by firms of other foreign 
                        countries are permitted in the foreign country,
                            ``(iv) the extent of government ownership 
                        or control of the means of production,
                            ``(v) the extent of government control over 
                        the allocation of resources and over the price 
                        and output decisions of enterprises, and
                            ``(vi) such other factors as the 
                        administering authority considers appropriate.
                    ``(C) Determination in effect.--
                            ``(i) Any determination that a foreign 
                        country is a nonmarket economy country shall 
                        remain in effect until revoked by the 
                        administering authority.
                            ``(ii) The administering authority may make 
                        a determination under subparagraph (A) with 
                        respect to any foreign country at any time.
                    ``(D) Determination not in issue.--Notwithstanding 
                any other provision of law, any determination made by 
                the administering authority under subparagraph (A) 
                shall not be subject to judicial review in any 
                investigation conducted under title VIII.
                    ``(E) Collection of information.--Upon request by 
                the administering authority, the Commissioner of 
                Customs shall provide the administering authority a 
                copy of all public and proprietary information 
                submitted to, or obtained by, the Commissioner of 
                Customs that the administering authority considers 
                relevant to proceedings involving vessels produced in 
                nonmarket economy countries. The administering 
                authority shall protect proprietary information 
                obtained under this section from public disclosure in 
                accordance with section 877.
            ``(30) The term `reconstruction' shall include, but shall 
        not be limited to, a substantial alteration or rebuilding of 
        the hull or principal structural component.

``SEC. 872. EXPORT PRICE.

    ``(a) Export Price.--The term `export price' means the price at 
which the subject vessel is first sold (or agreed to be sold) by or for 
the account of the foreign producer to an unaffiliated United States 
buyer. The term `sold (or agreed to be sold) by or for the account of 
the foreign producer' includes any transfer of an ownership interest, 
including by way of lease or long-term bareboat charter, in conjunction 
with the original transfer from the producer, either directly or 
indirectly, to a United States buyer. The term `sold (or agreed to be 
sold)' includes the reconstruction of a vessel or agreements to 
reconstruct a vessel, regardless of whether the transfer of an 
ownership interest occurs.
    ``(b) Adjustments to Export Price.--The price used to establish 
export price shall be--
            ``(1) increased by the amount of any import duties imposed 
        by the country of exportation which have been rebated, or which 
        have not been collected, by reason of the exportation of the 
        subject vessel, and
            ``(2) reduced by--
                    ``(A) the amount, if any, included in such price, 
                attributable to any additional costs, charges, or 
                expenses which are incident to bringing the subject 
                vessel from the shipyard in the exporting country to 
                the place of delivery;
                    ``(B) the amount, if included in such price, of any 
                export tax, duty, or other charge imposed by the 
                exporting country on the exportation of the subject 
                vessel; and
                    ``(C) all other expenses incidental to placing the 
                vessel in condition for delivery to the buyer.

``SEC. 873. NORMAL VALUE.

    ``(a) Determination.--In determining under this title whether the 
subject vessel has been sold at less than fair value, a fair comparison 
shall be made between the export price and normal value. In order to 
achieve a fair comparison with the export price, normal value shall be 
determined as follows:
            ``(1) Determination of normal value.--
                    ``(A) In general.--The normal value of the subject 
                vessel shall be the price described in subparagraph 
                (B), at a time reasonably corresponding to the time of 
                the sale used to determine the export price under 
                section 872(a).
                    ``(B) Price.--The price referred to in subparagraph 
                (A) is--
                            ``(i) the price at which a foreign like 
                        vessel is first sold in the exporting country, 
                        in the ordinary course of trade and, to the 
                        extent practicable, at the same level of trade, 
                        or
                            ``(ii) in a case to which subparagraph (C) 
                        applies, the price at which a foreign like 
                        vessel is so sold for consumption in a country 
                        other than the exporting country or the United 
                        States, if--
                                    ``(I) such price is representative, 
                                and
                                    ``(II) the administering authority 
                                does not determine that the particular 
                                market situation in such other country 
                                prevents a proper comparison with the 
                                export price.
                    ``(C) Third country sales.--This subparagraph 
                applies when--
                            ``(i) a foreign like vessel is not sold in 
                        the exporting country as described in 
                        subparagraph (B)(i), or
                            ``(ii) the particular market situation in 
                        the exporting country does not permit a proper 
                        comparison with the export price.
                    ``(D) Contemporaneous sale.--For the purpose of 
                subparagraph (A), `a time reasonably corresponding to 
                the time of the sale' normally means within 3 months 
                prior to or after the sale of the subject vessel.
            ``(2) Fictitious markets.--No pretended sale and no sale 
        intended to establish a fictitious market, shall be taken into 
        account in determining normal value.
            ``(3) Use of constructed value.--If the administering 
        authority determines that the normal value of the subject 
        vessel cannot be determined under paragraph (1)(B) or (1)(C), 
        then the normal value of the subject vessel will be the 
        constructed value of that vessel, as determined under 
        subsection (e).
            ``(4) Indirect sales.--If a foreign like vessel is sold 
        through an affiliated party, the price at which the foreign 
        like vessel is sold by such affiliated party may be used in 
        determining normal value.
            ``(5) Adjustments.--The price described in paragraph (1)(B) 
        shall be--
                    ``(A) reduced by--
                            ``(i) the amount, if any, included in the 
                        price described in paragraph (1)(B), 
                        attributable to any costs, charges, and 
                        expenses incident to bringing the foreign like 
                        vessel from the shipyard to the place of 
                        delivery to the purchaser,
                            ``(ii) the amount of any taxes imposed 
                        directly upon the foreign like vessel or 
                        components thereof which have been rebated, or 
                        which have not been collected, on the subject 
                        vessel, but only to the extent that such taxes 
                        are added to or included in the price of the 
                        foreign like vessel, and
                            ``(iii) the amount of all other expenses 
                        incidental to placing the foreign like vessel 
                        in condition for delivery to the buyer, and
                    ``(B) increased or decreased by the amount of any 
                difference (or lack thereof) between the export price 
                and the price described in paragraph (1)(B) (other than 
                a difference for which allowance is otherwise provided 
                under this section) that is established to the 
                satisfaction of the administering authority to be 
                wholly or partly due to--
                            ``(i) physical differences between the 
                        subject vessel and the vessel used in 
                        determining normal value, or
                            ``(ii) other differences in the 
                        circumstances of sale.
            ``(6) Additional adjustments.--
                    ``(A) Level of trade.--The price described in 
                paragraph (1)(B) shall also be increased or decreased 
                to make due allowance for any difference (or lack 
                thereof) between the export price and the price 
                described in paragraph (1)(B) (other than a difference 
                for which allowance is otherwise made under this 
                section) that is shown to be wholly or partly due to a 
                difference in level of trade between the export price 
                and normal value, if the difference in level of trade--
                            ``(i) involves the performance of different 
                        selling activities; and
                            ``(ii) is demonstrated to affect price 
                        comparability, based on a pattern of consistent 
                        price differences between sales at different 
                        levels of trade in the country in which normal 
                        value is determined.
                In a case described in the preceding sentence, the 
                amount of the adjustment shall be based on the price 
                differences between the two levels of trade in the 
                country in which normal value is determined.
            ``(7) Adjustments to constructed value.--Constructed value 
        as determined under subsection (d), may be adjusted, as 
        appropriate, pursuant to this subsection.
    ``(b) Sales at Less Than Cost of Production.--
            ``(1) Determination; sales disregarded.--Whenever the 
        administering authority has reasonable grounds to believe or 
        suspect that the sale of the foreign like vessel under 
        consideration for the determination of normal value has been 
        made at a price which represents less than the cost of 
        production of the foreign like vessel, the administering 
        authority shall determine whether, in fact, such sale was made 
        at less than the cost of production. If the administering 
        authority determines that the sale was made at less than the 
        cost of production and was not at a price which permits 
        recovery of all costs within 5 years such sale may be 
        disregarded in the determination of normal value. Whenever such 
        a sale is disregarded, normal value shall be based on another 
        sale of a foreign like vessel in the ordinary course of trade. 
        If no sales made in the ordinary course of trade remain, the 
        normal value shall be based on the constructed value of the 
        subject vessel.
            ``(2) Definitions and special rules.--For purposes of this 
        subsection:
                    ``(A) Reasonable grounds to believe or suspect.--
                There are reasonable grounds to believe or suspect that 
                sale of a foreign like vessel was made at a price that 
                is less than the cost of production of the vessel, if 
                an interested party described in subparagraph (C), (D), 
                (E), or (F) of section 871(17) provides information, 
                based upon observed prices or constructed prices or 
                costs, that the sale of the foreign like vessel under 
                consideration for the determination of normal value has 
                been made at a price which represents less than the 
                cost of production of the vessel.
                    ``(B) Recovery of costs.--If prices which are below 
                the cost of production at the time of sale are above 
                the weighted average per unit cost of production for 
                the period of investigation, such prices shall be 
                considered to provide for recovery of costs within a 
                reasonable period of time.
            ``(3) Calculation of cost of production.--For purposes of 
        this subtitle, the cost of production shall be an amount equal 
        to the sum of--
                    ``(A) the cost of materials and of fabrication or 
                other processing of any kind employed in producing the 
                foreign like vessel, during a period which would 
                ordinarily permit the production of that vessel in the 
                ordinary course of business; and
                    ``(B) an amount for selling, general, and 
                administrative expenses based on actual data pertaining 
                to production and sale of the foreign like vessel by 
                the producer in question; and
        For purposes of subparagraph (A), if the normal value is based 
        on the price of the foreign like vessel sold in a country other 
        than the exporting country, the cost of materials shall be 
        determined without regard to any internal tax in the exporting 
        country imposed on such materials or on their disposition which 
        are remitted or refunded upon exportation.
    ``(c) Nonmarket Economy Countries.--
            ``(1) In general.--If--
                    ``(A) the subject vessel is produced in a nonmarket 
                economy country, and
                    ``(B) the administering authority finds that 
                available information does not permit the normal value 
                of the subject vessel to be determined under subsection 
                (a),
        the administering authority shall determine the normal value of 
        the subject vessel on the basis of the value of the factors of 
        production utilized in producing the vessel and to which shall 
        be added an amount for general expenses and profit plus the 
        cost of any other expenses incidental to placing the vessel in 
        condition for delivery to buyer. Except as provided in 
        paragraph (2), the valuation of the factors of production shall 
        be based on the best available information regarding the values 
        of such factors in a market economy country or countries 
        considered to be appropriate by the administering authority.
            ``(2) Exception.--If the administering authority finds that 
        the available information is inadequate for purposes of 
        determining the normal value of the subject vessel under 
        paragraph (1), the administering authority shall determine the 
        normal value on the basis of the price at which a vessel that 
        is--
                    ``(A) comparable to the subject vessel, and
                    ``(B) produced in one or more market economy 
                countries that are at a level of economic development 
                comparable to that of the nonmarket economy country,
        is sold in other countries, including the United States.
            ``(3) Factors of production.--For purposes of paragraph 
        (1), the factors of production utilized in producing vessels 
        include, but are not limited to--
                    ``(A) hours of labor required,
                    ``(B) quantities of raw materials employed,
                    ``(C) amounts of energy and other utilities 
                consumed, and
                    ``(D) representative capital cost, including 
                depreciation.
            ``(4) Valuation of factors of production.--The 
        administering authority, in valuing factors of production under 
        paragraph (1), shall utilize, to the extent possible, the 
        prices or costs of factors of production in one or more market 
        economy countries that are--
                    ``(A) at a level of economic development comparable 
                to that of the nonmarket economy country, and
                    ``(B) significant producers of comparable vessels.
    ``(d) Special Rule for Certain Multinational Corporations.--
Whenever, in the course of an investigation under this title, the 
administering authority determines that--
            ``(1) the subject vessel was produced in facilities which 
        are owned or controlled, directly or indirectly, by a person, 
        firm, or corporation which also owns or controls, directly or 
        indirectly, other facilities for the production of foreign like 
        vessels which are located in another country or countries,
            ``(2) subsection (a)(1)(C) applies, and
            ``(3) the normal value of a foreign like vessel produced in 
        one or more of the facilities outside the exporting country is 
        higher than the normal value of the foreign like vessel 
        produced in the facilities located in the exporting country,
it shall determine the normal value of the subject vessel by reference 
to the normal value at which a foreign like vessel is sold from one or 
more facilities outside the exporting country. The administering 
authority, in making any determination under this paragraph, shall make 
adjustments for the difference between the costs of production 
(including taxes, labor, materials, and overhead) of the foreign like 
vessel produced in facilities outside the exporting country and costs 
of production of the foreign like vessel produced in facilities in the 
exporting country, if such differences are demonstrated to its 
satisfaction.
    ``(e) Constructed Value.--For purposes of this title, the 
constructed value of the subject vessel shall be an amount equal to the 
sum of--
            ``(1) the cost of materials and fabrication or other 
        processing of any kind employed in producing the subject 
        vessel, during a period which would ordinarily permit the 
        production of the vessel in the ordinary course of business;
            ``(2)(A) the actual amounts incurred and realized by the 
        foreign producer of the subject vessel for selling, general, 
        and administrative expenses, and for profits, in connection 
        with the production and sale of the foreign like vessel, in the 
        ordinary course of trade, in the domestic market of the country 
        of origin of the subject vessel, or
            ``(B) if actual data are not available with respect to the 
        amounts described in subparagraph (A), then--
                    ``(i) the actual amounts incurred and realized by 
                the foreign producer of the subject vessel for selling, 
                general, and administrative expenses, and for profits, 
                in connection with the production and sale of the same 
                general category of vessel in the domestic market of 
                the country of origin of the subject vessel,
                    ``(ii) the weighted average of the actual amounts 
                incurred and realized by producers in the country of 
                origin of the subject vessel (other than the producer 
                of the subject vessel) for selling, general, and 
                administrative expenses, and for profits, in connection 
                with the production and sale of foreign like vessels, 
                in the ordinary course of trade, in the domestic 
                market, or
                    ``(iii) if data is not available under subparagraph 
                (i) or (ii), the amounts incurred and realized for 
                selling, general, and administrative expenses, and for 
                profits, based on any other reasonable method, except 
                that the amount allowed for profit may not exceed the 
                amount normally realized by foreign producers (other 
                than the producer of the subject vessel) in connection 
                with the sale of vessels in the same general category 
                in the domestic market of the country of origin of the 
                subject vessel, and
                    ``(iv) the profit shall, in all cases, be based on 
                the average profit realized over a reasonable period of 
                time prior to and after the sale of the subject vessel 
                and shall reflect a reasonable profit at the time of 
                such sale. For the purpose of this subparagraph, a 
                `reasonable period of time' normally will not exceed 
                six months prior to and after the sales of the subject 
                vessel.
                    ``(C) when costs and profit are determined under 
                paragraph (B)(iii), such determination shall normally 
                be based on appropriate export sales by the producer of 
                the subject vessel or, absent such sales, to export 
                sales by other producers of the like vessel or the same 
                general category of vessel in the country of origin of 
                the subject vessel.
For purposes of paragraph (1), the cost of materials shall be 
determined without regard to any internal tax in the exporting country 
imposed on such materials or their disposition which are remitted or 
refunded upon exportation of the subject vessel produced from such 
materials.
    ``(f) Special Rules for Calculation of Cost of Production and for 
Calculation of Constructed Value.--For purposes of subsections (b) and 
(e)--
            ``(1) Costs.--
                    ``(A) In general.--Costs shall normally be 
                calculated based on the records of the foreign producer 
                of the vessel, if such records are kept in accordance 
                with the generally accepted accounting principles of 
                the exporting country and reasonably reflect the costs 
                associated with the production and sale of the vessel. 
                The administering authority shall consider all 
                available evidence on proper allocation of costs, 
                including that which is made available by the foreign 
                producer on a timely basis, if such allocations have 
                been historically used by the foreign producer, in 
                particular for establishing appropriate amortization 
                and depreciation periods, and allowances for capital 
                expenditures and other development costs.
                    ``(B) Nonrecurring costs.--Costs shall be adjusted 
                appropriately for those nonrecurring costs that benefit 
                current or future production, or both.
                    ``(C) Startup costs.--
                            ``(i) In general.--Costs shall be adjusted 
                        appropriately for circumstances in which costs 
                        incurred during the time period covered by the 
                        investigation are affected by startup 
                        operations.
                            ``(ii) Startup operations.--Adjustments 
                        shall be made for startup operations only 
                        where--
                                    ``(I) a producer is using new 
                                production facilities or producing a 
                                new type of vessel that requires 
                                substantial additional investment, and
                                    ``(II) production levels are 
                                limited by technical factors associated 
                                with the initial phase of commercial 
                                production.
                        For purposes of subclause (II), the initial 
                        phase of commercial production ends at the end 
                        of the startup period. In determining whether 
                        commercial production levels have been 
                        achieved, the administering authority shall 
                        consider factors unrelated to startup 
                        operations that might affect the volume of 
                        production processed, such as demand, 
                        seasonality, or business cycles.
                            ``(iii) Adjustment for startup 
                        operations.--The adjustment for startup 
                        operations shall be made by substituting the 
                        unit production costs incurred with respect to 
                        the vessel at the end of the startup period for 
                        the unit production costs incurred during the 
                        startup period. If the startup period extends 
                        beyond the period of the investigation under 
                        this title, the administering authority shall 
                        use the most recent cost of production data 
                        that it reasonably can obtain, analyze, and 
                        verify without delaying the timely completion 
                        of the investigation or review. For purposes of 
                        this subparagraph, the startup period ends at 
                        the point at which the level of commercial 
                        production that is characteristic of the 
                        vessel, the producer, or the industry is 
                        achieved.
                    ``(D) Costs shall not include actual costs which 
                are due to extraordinary circumstances (including, but 
                not limited to, labor disputes, fire, natural disaster) 
                and which are significantly over the cost increase 
                which the shipbuilder could have reasonably anticipated 
                and taken into account at the time of sale.
            ``(2) Transactions disregarded.--A transaction directly or 
        indirectly between affiliated persons may be disregarded if, in 
        the case of any element of value required to be considered, the 
        amount representing that element does not fairly reflect the 
        amount usually reflected in sales of the vessel under 
        consideration in the market under consideration. If a 
        transaction is disregarded under the preceding sentence and no 
        other transactions are available for consideration, the 
        determination of the amount shall be based on the information 
        available as to what the amount would have been if the 
        transaction had occurred between persons who are not 
        affiliated.
            ``(3) Major input rule.--If, in the case of a transaction 
        between affiliated persons involving the production by one of 
        such persons of a major input to the vessel, the administering 
        authority has reasonable grounds to believe or suspect that an 
        amount represented as the value of such input is less than the 
        cost of production of such input, then the administering 
        authority may determine the value of the major input on the 
        basis of the information available regarding such cost of 
        production, if such cost is greater than the amount that would 
        be determined for such input under paragraph (2).

``SEC. 873A. CURRENCY CONVERSION.

    ``(a) In General.--In an injurious pricing proceeding under this 
title, the administering authority shall convert foreign currencies 
into United States dollars using the exchange rate in effect on the 
date of sale of the subject vessel, except that if it is established 
that a currency transaction on forward markets is directly linked to a 
sale under consideration, exchange rate specified with respect to such 
foreign currency in the forward sale agreement shall be used to convert 
the foreign currency.
    ``(b) Date of Sale.--For purposes of this section, `date of sale' 
means the date on which the material terms of sale are established. 
That date is normally the date of contract. If, however, the material 
terms of sale are significantly changed, the date of sale is the date 
of such change. In the case of such a change in the date of sale, the 
administering authority shall make appropriate adjustments to take into 
account any unreasonable effect on the injurious pricing margin solely 
due to fluctuation in the exchange rate between the original date of 
sale and the new date of sale.

``SEC. 874. HEARINGS.

    ``(a) The administering authority and the Commission shall each 
hold a hearing in the course of an investigation upon the request of 
any party to the investigation before making a final determination 
under section 835.
    ``(b) Procedures.--Any hearing required or permitted under this 
title shall be conducted after notice published in the Federal 
Register, and a transcript of the hearing shall be prepared and made 
available to the public. The hearing shall not be subject to the 
provisions of subchapter II of chapter 5 of title 5, United States 
Code, or to section 702 of such title.

``SEC. 876. DETERMINATIONS ON THE BASIS OF THE FACTS AVAILABLE.

    ``(a) In General.--If--
            ``(1) necessary information is not available on the record, 
        or
            ``(2) an interested party or any other person--
                    ``(A) withholds information that has been requested 
                by the administering authority or the Commission under 
                this title,
                    ``(B) fails to provide such information by the 
                deadlines for the submission of the information or in 
                the form and manner requested subject to subsections 
                (b)(1) and (d) of section 882,
                    ``(C) significantly impedes a proceeding under this 
                title, or
                    ``(D) provides such information but the information 
                cannot be verified as provided in section 882(g),
the administering authority and the Commission shall, subject to 
section 882(c), use the facts otherwise available in reaching the 
applicable determination under this title.
    ``(b) Adverse Inferences.--If the administering authority or the 
Commission (as the case may be) finds that an interested party has 
failed to cooperate by not acting to the best of its ability to comply 
with a request for information from the administering authority or the 
Commission, the administering authority or the Commission (as the case 
may be), in reaching the applicable determination under this title, may 
use an inference that is adverse to the interests of that party in 
selecting from among the facts otherwise available. Such adverse 
inference may include reliance on information derived from--
            ``(1) the petition, or
            ``(2) any other information placed on the record.
    ``(c) Corroboration of Secondary Information.--When the 
administering authority or the Commission relies on secondary 
information rather than on information obtained in the course of an 
investigation or review, the administering authority and the 
Commission, as the case may be, shall, to the extent practicable, 
corroborate that information from independent sources that are 
reasonably at their disposal.

``SEC. 877. ACCESS TO INFORMATION.

    ``(a) Information Generally Made Available.--
            ``(1) Progress of investigation reports.--The administering 
        authority and the Commission shall, from time to time upon 
        request, inform the parties to an investigation of the progress 
        of that investigation.
            ``(2) Ex parte meetings.--The administering authority and 
        the Commission shall maintain a record of any ex parte meeting 
        between--
                    ``(A) interested parties or other persons providing 
                factual information in connection with a proceeding, 
                and
                    ``(B) the person charged with making the 
                determination, or any person charged with making a 
                final recommendation to that person, in connection with 
                that proceeding,
        if information relating to that proceeding was presented or 
        discussed at such meeting. The record of such an ex parte 
        meeting shall include the identity of the persons present at 
        the meeting, the date, time, and place of the meeting, and a 
        summary of the matters discussed or submitted. The record of 
        the ex parte meeting shall be included in the record of the 
        proceeding.
            ``(3) Summaries; nonproprietary submissions.--The 
        administering authority and the Commission shall disclose--
                    ``(A) any proprietary information received in the 
                course of a proceeding if it is disclosed in a form 
                which cannot be associated with, or otherwise be used 
                to identify, operations of a particular person, and
                    ``(B) any information submitted in connection with 
                a proceeding which is not designated as proprietary by 
                the person submitting it.
            ``(4) Maintenance of public record.--The administering 
        authority and the Commission shall maintain and make available 
        for public inspection and copying a record of all information 
        which is obtained by the administering authority or the 
        Commission, as the case may be, in a proceeding under this 
        title to the extent that public disclosure of the information 
        is not prohibited under this chapter or exempt from disclosure 
        under section 552 of title 5, United States Code.
    ``(b) Proprietary Information.--
            ``(1) Proprietary status maintained.--
                    ``(A) In general.--Except as provided in subsection 
                (a)(4)(A) and subsection (c), information submitted to 
                the administering authority or the Commission which is 
                designated as proprietary by the person submitting the 
                information shall not be disclosed to any person 
                without the consent of the person submitting the 
                information, other than--
                            ``(i) to an officer or employee of the 
                        administering authority or the Commission who 
                        is directly concerned with carrying out the 
                        investigation in connection with which the 
                        information is submitted or any other 
                        proceeding under this title covering the same 
                        subject vessel, or
                            ``(ii) to an officer or employee of the 
                        United States Customs Service who is directly 
                        involved in conducting an investigation 
                        regarding fraud under this title.
                    ``(B) Additional requirements.--The administering 
                authority and the Commission shall require that 
                information for which proprietary treatment is 
                requested be accompanied by--
                            ``(i) either--
                                    ``(I) a nonproprietary summary in 
                                sufficient detail to permit a 
                                reasonable understanding of the 
                                substance of the information submitted 
                                in confidence, or
                                    ``(II) a statement that the 
                                information is not susceptible to 
                                summary accompanied by a statement of 
                                the reasons in support of the 
                                contention, and
                            ``(ii) either--
                                    ``(I) a statement which permits the 
                                administering authority or the 
                                Commission to release under 
                                administrative protective order, in 
                                accordance with subsection (c), the 
                                information submitted in confidence, or
                                    ``(II) a statement to the 
                                administering authority or the 
                                Commission that the business 
                                proprietary information is of a type 
                                that should not be released under 
                                administrative protective order.
            ``(2) Unwarranted designation.--If the administering 
        authority or the Commission determines, on the basis of the 
        nature and extent of the information or its availability from 
        public sources, that designation of any information as 
        proprietary is unwarranted, then it shall notify the person who 
        submitted it and ask for an explanation of the reasons for the 
        designation. Unless that person persuades the administering 
        authority or the Commission that the designation is warranted, 
        or withdraws the designation, the administering authority or 
        the Commission, as the case may be, shall return it to the 
        party submitting it. In a case in which the administering 
        authority or the Commission returns the information to the 
        person submitting it, the person may thereafter submit other 
        material concerning the subject matter of the returned 
        information if the submission is mad within the time otherwise 
        provided for submitting such material.
    ``(c) Limited Disclosure of Certain Proprietary Information Under 
Protective Order.--
            ``(1) Disclosure by administering authority or 
        Commission.--
                    ``(A) In general.--Upon receipt of an application 
                (before or after receipt of the information requested) 
                which describes in general terms the information 
                requested and sets forth the reasons for the request, 
                the administering authority or the Commission shall 
                make all business proprietary information presented to, 
                or obtained by it, during a proceeding (except 
                privileged information, classified information, and 
                specific information of a type for which there is a 
                clear and compelling need to withhold from disclosure) 
                available to all interested parties who are parties to 
                the proceeding under a protective order described in 
                subparagraph (B), regardless of when the information is 
                submitted during a proceeding. Customer names (other 
                than the name of the United States buyer of the subject 
                vessel) obtained during any investigation which 
                requires a determination under section 835(b) may not 
                be disclosed by the administering authority under 
                protective order until either an order is published 
                under section 836(a) as a result of the investigation 
                or the investigation is suspended or terminated. The 
                Commission may delay disclosure of customer names 
                (other than the name of the United States buyer of the 
                subject vessel) under protective order during any such 
                investigation until a reasonable time prior to any 
                hearing provided under section 874.
                    ``(B) Protective order.--The protective order under 
                which information is made available shall contain such 
                requirements as the administering authority or the 
                Commission may determine by regulation to be 
                appropriate. The administering authority and the 
                Commission shall provide by regulation for such 
                sanctions as the administering authority and the 
                Commission determine to be appropriate, including 
                disbarment from practice before the agency.
                    ``(C) Time limitations on determinations.--The 
                administering authority or the Commission, as the case 
                may be, shall determine whether to make information 
                available under this paragraph--
                            ``(i) not later than 14 days (7 days if the 
                        submission pertains to a proceeding under 
                        section 833(a)) after the date on which the 
                        information is submitted, or
                            ``(ii) if--
                                    ``(I) the person submitting the 
                                information raises objection to its 
                                release, or
                                    ``(II) the information is unusually 
                                voluminous or complex,
                        not later than 30 days (10 days if the 
                        submission pertains to a proceeding under 
                        section 833(a)) after the date on which the 
                        information is submitted.
                    ``(D) Availability after determination.--If the 
                determination under subparagraph (C) is affirmative, 
                then--
                            ``(i) the business proprietary information 
                        submitted to the administering authority or 
the  Commission on or before the date of the determination shall be 
made available, subject to the terms and conditions of the protective 
order, on such date; and
                            ``(ii) the business proprietary information 
                        submitted to the administering authority or the 
                        Commission after the date of the determination 
                        shall be served as required by subsection (d).
                    ``(E) Failure to disclose.--If a person submitting 
                information to the administering authority refuses to 
                disclose business proprietary information which the 
                administering authority determines should be released 
                under a protective order described in subparagraph (B), 
                the administering authority shall return the 
                information, and any nonconfidential summary thereof, 
                to the person submitting the information and summary 
                and shall not consider either.
            ``(2) Disclosure under court order.--If the administering 
        authority or the Commission denies a request for information 
        under paragraph (1), then application may be made to the United 
        States Court of International Trade for an order directing the 
        administering authority or the Commission, as the case may be, 
        to make the information available. After notification of all 
        parties to the investigation and after an opportunity for a 
        hearing on the record, the court may issue an order, under such 
        conditions as the court deems appropriate, which shall not have 
        the effect of stopping or suspending the investigation, 
        directing the administering authority or the Commission to make 
        all or a portion of the requested information described in the 
        preceding sentence available under a protective order and 
        setting forth sanctions for violation of such order if the 
        court finds that, under the standards applicable in proceedings 
        of the court, such an order is warranted, and that--
                    ``(A) the administering authority or the Commission 
                has denied access to the information under subsection 
                (b)(1),
                    ``(B) the person on whose behalf the information is 
                requested is an interested party who is a party to the 
                investigation in connection with which the information 
                was obtained or developed, and
                    ``(C) the party which submitted the information to 
                which the request relates has been notified, in advance 
                of the hearing, of the request made under this section 
                and of its right to appear and be heard.
    ``(d) Service.--Any party submitting written information, including 
business proprietary information, to the administering authority or the 
Commission during a proceeding shall, at the same time, serve the 
information upon all interested parties who are parties to the 
proceeding, if the information is covered by a protective order. The 
administering authority or the Commission shall not accept any such 
information that is not accompanied by a certificate of service and a 
copy of the protective order version of the document containing the 
information. Business proprietary information shall only be served upon 
interested parties who are parties to the proceeding that are subject 
to protective order; however, a nonconfidential summary thereof shall 
be served upon all other interested parties who are parties to the 
proceeding.
    ``(e) Information Relating to Violations of Protective Orders and 
Sanctions.--The administering authority and the Commission may withhold 
from disclosure any correspondence, private letters of reprimand, 
settlement agreements, and documents and files compiled in relation to 
investigations and actions involving a violation or possible violation 
of a protective order issued under subsection (c) of this section, and 
such information shall be treated as information described in section 
552(b)(3) of title 5.
    ``(f) Opportunity for Comment by Vessel Operators.--The 
administering authority and the Commission shall provide an opportunity 
for operators of subject vessels to submit relevant information to the 
administering authority concerning a sale at less than fair value or 
countermeasures, and to the Commission concerning material injury by 
reason of sale of a vessel at less than fair value.
    ``(g) Publication of Determinations; Requirements for Final 
Determinations.--
            ``(1) In general.--Whenever the administering authority 
        makes a determination under section 832 whether to initiate an 
        investigation, or the administering authority or the Commission 
        makes a preliminary determination under section 833, a final 
        determination under section 835, a determination under 
        paragraph (b), (c), (d), (e)(3)(B)(ii), (g), or (i) of section 
        837, or a determination to suspend an investigation under this 
        title, the administering authority or the Commission, as the 
        case may be, shall publish the facts and conclusions supporting 
        that determination, and shall publish notice of that 
        determination in the Federal Register.
            ``(2) Contents of notice or determination.--The notice or 
        determination published under paragraph (1) shall include, to 
        the extent applicable--
                    ``(A) in the case of a determination of the 
                administering authority--
                            ``(i) the names of the foreign producer and 
                        the country of origin of the subject vessel,
                            ``(ii) a description sufficient to identify 
                        the subject vessel,
                            ``(iii) with respect to an injurious 
                        pricing charge, the injurious pricing margin 
                        established and a full explanation of the 
                        methodology used in establishing such margin, 
                        and
                            ``(iv) with respect to countermeasures, the 
                        scope and duration of countermeasures and, if 
                        applicable, any changes thereto, and
                            ``(v) the primary reasons for the 
                        determination.
                    ``(B) in the case of a determination of the 
                Commission--
                            ``(i) considerations relevant to the 
                        determination of injury, and
                            ``(ii) the primary reasons for the 
                        determination.
            ``(3) Additional requirements for final determinations.--In 
        addition to the requirements set forth in paragraph (2)--
                    ``(A) the administering authority shall include in 
                a final determination under section 835 or 837(c) an 
                explanation of the basis for its determination that 
                addresses relevant arguments, made by interested 
                parties who are parties to the investigation concerning 
                the establishment of the injurious pricing charge with 
                respect to which the determination is made; and
                    ``(B) the Commission shall include in a final 
                determination of injury an explanation of the basis for 
                its determination that addresses relevant arguments 
                that are made by interested parties who are parties to 
                the investigation concerning the effects and impact on 
                the industry of sale of the subject vessel.

``SEC. 882. CONDUCT OF INVESTIGATIONS.

    ``(a) Certification of Submissions.--Any person providing factual 
information to the administering authority or the Commission in 
connection with a proceeding under this title on behalf of the 
petitioner or any other interested party shall certify that such 
information is accurate and complete to the best of that person's 
knowledge.
    ``(b) Difficulties in Meeting Requirements.--
            ``(1) Notification by interested party.--If an interested 
        party, promptly after receiving a request from the 
        administering authority or the Commission for information, 
        notifies the administering authority or the Commission (as the 
        case may be) that such party is unable to submit the 
        information requested in the requested form and manner, 
        together with a full explanation and suggested alternative 
        forms in which such party is able to submit the information, 
        the administering authority or the Commission (as the case may 
        be) shall consider the ability of the interested party to 
        submit the information in the requested form and manner and may 
        modify such requirements to the extent necessary to avoid 
        imposing an unreasonable burden on that party.
            ``(2) Assistance to interested parties.--The administering 
        authority and the Commission shall take into account any 
        difficulties experienced by interested parties, particularly 
        small companies, in supplying information requested by the 
        administering authority or the Commission in connection with 
        investigations and reviews under this title, and shall provide 
        to such interested parties any assistance that is practicable 
        in supplying such information.
    ``(c) Deficient Submissions.--If the administering authority or the 
Commission determines that a response to a request for information 
under this title does not comply with the request, the administering 
authority or the Commission (as the case may be) shall promptly inform 
the person submitting the response of the nature of the deficiency and 
shall, to the extent practicable, provide that person with an 
opportunity to remedy or explain the deficiency in light of the time 
limits established for the completion of investigations or reviews 
under this title. If that person submits further information in 
response to such deficiency and either--
            ``(1) the administering authority or the Commission, as the 
        case may be, finds that such response is not satisfactory, or
            ``(2) such response is not submitted within the applicable 
        time limits,
then the administering authority or the Commission (as the case may be) 
may, subject to subsection (d), disregard all or part of the original 
and subsequent responses.
    ``(d) Use of Certain Information.--In reaching a determination 
under section 833, 835, or 837 the administering authority and the 
Commission shall not decline to consider information that is submitted 
by an interested party and is necessary to the determination but does 
not meet all the applicable requirements established by the 
administering authority or the Commission if--
            ``(1) the information is submitted by the deadline 
        established for its submission,
            ``(2) the information can be verified,
            ``(3) the information is not so incomplete that it cannot 
        serve as a reliable basis for reaching the applicable 
        determination,
            ``(4) the interested party has demonstrated that it acted 
        to the best of its ability in providing the information and 
        meeting the requirements established by the administering 
        authority or the Commission with respect to the information, 
        and
            ``(5) the information can be used without undue 
        difficulties.
    ``(e) Nonacceptance of Submissions.--If the administering authority 
or the Commission declines to accept into the record any information 
submitted in an investigation or review under this title, it shall, to 
the extent practicable, provide to the person submitting the 
information a written explanation of the reasons for not accepting the 
information.
    ``(f) Public Comment on Information.--Information, that is 
submitted on a timely basis to the administering authority or the 
Commission during the course of a proceeding under this title shall be 
subject to comment by other parties within such reasonable time as the 
administering authority or the Commission shall provide. The 
administering authority and the Commission, before making a final 
determination under sections 835 and 837, shall cease collecting 
information and shall provide the parties with a final opportunity to 
comment on the information obtained by the administering authority or 
the Commission (as the case may be) upon which the parties have not 
previously had an opportunity to comment. Comments containing new 
factual information shall be disregarded.
    ``(g) Verification.--The administering authority shall verify all 
information relied upon in making a final determination under section 
835.

``SEC. 883. INJURIOUS PRICING PETITIONS BY THIRD COUNTRIES.

    ``(a) Filing of Petition.--The government of a Shipbuilding 
Agreement Party may file with the Trade Representative a petition 
requesting that an investigation be conducted to determine if--
            ``(1) a vessel from another Shipbuilding Agreement Party 
        has been sold in the United States at less than fair value, and
            ``(2) an industry in the petitioning country is materially 
        injured by reason of such sale.
    ``(b) Initiation.--The Trade Representative, after consultation 
with the administering authority and the Commission and obtaining the 
approval of the Parties Group of the Shipbuilding Agreement, shall 
determine whether to initiate an investigation described in subsection 
(a).
    ``(c) Determinations.--Upon initiation of an investigation, the 
Trade Representative shall request the following determinations be made 
according to substantive and procedural requirements specified by the 
Trade Representative, notwithstanding any other provisions of this 
title:
            ``(1) The administering authority shall determine whether 
        the subject vessel has been sold at less than fair value.
            ``(2) The Commission shall determine whether an industry in 
        the petitioning country is materially injured by reason of the 
        sale of the subject vessel in the United States.
    ``(d) Public Comment. An opportunity for public comment shall be 
provided, as appropriate--
            ``(1) by the Trade Representative, in making the 
        determination required by subsection (b), and
            ``(2) by the administering authority and the Commission, in 
        making the determination required by subsection (c).
    ``(e) Issuance of Order.--If the administering authority makes an 
affirmative determination under paragraph (1) of subsection (c), and 
the Commission makes an affirmative determination under paragraph (2) 
of subsection (c), the administering authority shall--
            ``(1) order an injurious pricing charge in accordance with 
        section 836, and
            ``(2) make such determinations and take such other actions 
        as are required by sections 836 and 837, as if affirmative 
        determinations had been made under section 835 (a) and (b).
    ``(f) Reviews of Determinations.--For purposes of review under 
section 516B, if an order is issued under subsection (e)--
            ``(1) the final determinations of the administering 
        authority and the Commission under subsection (c) shall be 
        treated as final determinations made under section 835, and
            ``(2) determinations of the administering authority under 
        paragraph (e)(2) shall be treated as determinations made under 
        section 836 or 837, as the case may be.
    ``(g) Access to Information.--Section 877 shall apply to 
investigations under this section, to the extent specified by the Trade 
Representative, after consultation with the administering authority and 
the Commission.

``SEC. 884. ADMINISTRATIVE ACTION FOLLOWING SHIPBUILDING AGREEMENT 
              PANEL REPORTS.

    ``(a) Action by United States International Trade Commission.--
            ``(1) Consultations with congressional committees.--
        Promptly after a report by a dispute settlement panel is issued 
        that contains findings that an action by the Commission in a 
        proceeding under title VIII of this Act is not in conformity 
        with the obligations of the United States under the 
        Shipbuilding Agreement, the Trade Representative shall consult 
        with the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate on 
        the matter.
            ``(2) Request for reports.--In the case of a report 
        described in paragraph (1), the Trade Representative may 
        request the Commission to--
                    ``(A) issue an advisory report on whether title 
                VIII of this Act permits the Commission to take steps 
                in connection with the particular proceeding that would 
                render its action not inconsistent with the findings of 
                the panel concerning those obligations; and
                    ``(B) if a majority of the Commissioners issues an 
                affirmative report under subparagraph (A), issue a 
                determination in connection with the particular 
                proceeding that would render the Commission's action 
                described in paragraph (1) not inconsistent with the 
                findings of the panel.
        The Trade Representative shall notify the congressional 
        committees listed in paragraph (1) of such a request.
            ``(3) Time limits for report.--The Commission shall 
        transmit to the Trade Representative--
                    ``(A) its report under subparagraph (A) of 
                paragraph (1) within 60 calendar days after the request 
                from the Trade Representative is made, and
                    ``(B) its determination under subparagraph (B) of 
                paragraph (1) within 120 calendar days after the 
                request from the Trade Representative is made, but only 
                if a majority of the Commissioners issues an 
                affirmative report under subparagraph (A) of paragraph 
                (1).
            ``(4) Revocation of order.--If, by virtue of the 
        Commission's determination under subparagraph (B) of paragraph 
        (1), an injurious pricing order is no longer supported by an 
        affirmative Commission determination under title VIII of this 
        Act, the administering authority shall revoke the injurious 
        pricing order and shall publish notice of the revocation in the 
        Federal Register.
    ``(b) Action by Administering Authority.--
            ``(1) Consultations with administering authority and 
        congressional committees.--Promptly after a report or other 
        determination by a dispute settlement panel is issued that 
        contains findings that--
                    ``(A) an action by the administering authority in a 
                proceeding under title VIII of this Act is not in 
                conformity with the obligations of the United States 
                under the Shipbuilding Agreement,
                    ``(B) the due date for payment of an injurious 
                pricing charge contained in an order issued pursuant to 
                section 836 of this Act should be amended,
                    ``(C) countermeasures provided for in an order 
                issued pursuant to section 837 should be provisionally 
                suspended or reduced pending the final decision of the 
                panel, or
                    ``(D) the scope or duration of countermeasures 
                imposed pursuant to section 837 of this Act should be 
                narrowed or shortened,
        the Trade Representative shall consult with the administering 
        authority and the congressional committees listed in paragraph 
        (a)(1) on the matter.
            ``(2) Determination by administering authority.--
        Notwithstanding any provision of this Act, the administering 
        authority shall, in response to a written request from the 
        Trade Representative, issue a determination, or an amendment to 
        or suspension of an injurious pricing or countermeasure order, 
        as the case may be, in connection with the particular 
        proceeding that would render the administering authority's 
        action described in paragraph (1) not inconsistent with the 
        findings of the panel.
            ``(3) Time limits for determinations.--The administering 
        authority shall issue its determination--
                    ``(A) with respect to a matter described in 
                subparagraph (A) of paragraph (1), within 180 calendar 
                days after the request from the Trade Representative is 
                made; and
                    ``(B) with respect to a matter described in 
                subparagraph (B), (C), or (D) of paragraph (1), within 
                15 calendar days after the request from the Trade 
                Representative is made.
            ``(4) Implementation of determination; notice of 
        implementation.--The administering authority shall implement 
        the determination under paragraph (2)--
                    ``(A) with respect to a matter described in 
                subparagraph (A) of paragraph (1), only if the 
                injurious pricing margin in the determination under 
                paragraph (2) differs from the injurious pricing margin 
                in the determination reviewed by the panel, and
                    ``(B) with respect to a matter described in 
                subparagraph (B), (C), or (D) of paragraph (1), upon 
                issuance of the determination under paragraph (2).
        The administering authority shall publish notice of 
        implementation in the Federal Register.
    ``(c) Opportunity for Comment by Interested Parties.--Prior to 
issuing a determination, the administering authority, in a matter 
described in paragraph (b)(1)(A), or the Commission, in a matter 
described in paragraph (a)(1), as the case may be, shall provide 
interested parties with an opportunity to submit written comments and, 
in appropriate cases, may hold a hearing, with respect to the 
determination.''

SEC. 102. ENFORCEMENT OF COUNTERMEASURES.

    Subtitle III, part II, of the Tariff Act of 1930, as amended, is 
further amended by the addition of the following:

``SEC. 468. SHIPBUILDING AGREEMENT COUNTERMEASURES.

    ``(a) In General.--Notwithstanding any other provision of law, upon 
receiving from the Secretary of Commerce a list of vessels subject to 
countermeasures under section 837 of this Act, the Customs Service 
shall deny any request for a permit to lade or unlade passengers, 
merchandise or baggage from or onto those vessels so listed.
    ``(b) Exceptions.--Subsection (a) shall not be applied to deny a 
permit for the following:
            ``(1) To unlade any United States citizen or permanent 
        legal resident alien from such vessel; or to unlade any refugee 
        or any alien who would otherwise be eligible to apply for 
        asylum and withholding of deportation under the Immigration and 
        Naturalization Act.
            ``(2) To lade or unlade any crewmember(s) of the listed 
        vessel.
            ``(3) To lade or unlade coal and other fuel supplies (for 
        the operation of the listed vessel), ships' stores, sea stores, 
        and the legitimate equipment of such vessel.
            ``(4) To lade or unlade supplies for the use or sale on a 
        listed vessel.
            ``(5) To lade or unlade such other merchandise, baggage or 
        passenger(s) as the Customs Service shall determine necessary 
to protect the immediate health, safety, or welfare of a human being.
    ``(c) Correction of Ministerial or Clerical Errors.--
            ``(1) If the master of any vessel whose application for a 
        permit to lade or unlade has been denied pursuant to this 
        section believes that such denial resulted from a ministerial 
        or clerical error, not amounting to a mistake of law, committed 
        by any Customs officer, the master may petition the Customs 
        Service for correction of such error, as provided by 
        regulation.
            ``(2) Notwithstanding paragraph (1), imposition of 
        countermeasures under this section shall not be deemed an 
        exclusion or other protestable decision under section 514 of 
        this Act, nor shall be subject to correction under section 520 
        of this Act.
            ``(3) Any petition seeking administrative review of any 
        matter regarding the Secretary of Commerce's decision to list a 
        vessel under section 837 of this Act must be brought pursuant 
        to that section.
    ``(d) Penalties.--In addition to any other provision of law, the 
Customs Service may impose a civil monetary penalty not to exceed 
$10,000 against the master of any vessel--
            ``(1) who submits false information in requesting any 
        permit to lade or unlade; or
            ``(2) who attempts to, or actually does, lade or unlade in 
        violation of any denial of such permit pursuant to this 
        section.''

SEC. 103. JUDICIAL REVIEW IN INJURIOUS PRICING AND COUNTERMEASURE 
              PROCEEDINGS.

    (a) Subtitle III, part III, of the Tariff Act of 1930, as amended, 
is further amended by the addition of the following:

``SEC. 516B. JUDICIAL REVIEW IN INJURIOUS PRICING AND COUNTERMEASURE 
              PROCEEDINGS.

    ``(a) Review of Determination.--
            ``(1) Within 30 days after the date of publication in the 
        Federal Register of--
                    ``(A)(i) a determination by the administering 
                authority, under section 832(c) of this Act, not to 
                initiate an investigation,
                    ``(ii) a negative determination by the Commission, 
                under section 833(a) of this Act, as to whether there 
                is or has been reasonable indication of material 
                injury, threat of material injury, or material 
                retardation,
                    ``(iii) a determination by the administering 
                authority to suspend or revoke an injurious pricing 
                order under section 836 (d) or (e),
                    ``(iv) a determination by the administering 
                authority under section 837(c) of this Act,
                    ``(v) a determination by the administering 
                authority in a review under section 837(d) of this Act,
                    ``(vi) a determination by the administering 
                authority concerning whether to extend the scope or 
                duration of a countermeasure order under section 
                837(e)(3)(B)(ii) of this Act,
                    ``(vii) a determination by the administering 
                authority to amend a countermeasure order under section 
                837(e)(6) of this Act,
                    ``(viii) a determination by the administering 
                authority in a review under section 837(g) of this Act,
                    ``(ix) a determination by the administering 
                authority under section 837(i) of this Act to terminate 
                proceedings, or to amend or revoke a countermeasure 
                order,
                    ``(x) a determination by the administering 
                authority under section 884(b) of this Act, with 
                respect to a matter described in paragraph (1)(D) of 
                that section, or
                    ``(B)(i) an injurious pricing order based on a 
                determination described in clause (i) of paragraph (C),
                    ``(ii) notice of a determination described in 
                clause (ii) of paragraph (C),
                    ``(iii) notice of implementation of a determination 
                described in clause (iii) of paragraph (C), or
                    ``(iv) notice of revocation of an injurious pricing 
                order based on a determination described in clause (iv) 
                of paragraph (C),
        an interested party 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.
                    ``(C) Reviewable determinations.--The 
                determinations which may be contested under 
                subparagraph (B) are as follows:
                            ``(i) final affirmative determinations by 
                        the administering authority and by the 
                        Commission under section 835 of this Act, 
                        including any negative part of such a 
                        determination (other than a part referred to in 
                        clause (ii)),
                            ``(ii) a final negative determination by 
                        the administering authority or the Commission 
                        under section 835 of this Act,
                            ``(iii) a determination by the 
                        administering authority under section 884(b) of 
                        this Act, with respect to a matter described in 
                        paragraph (1)(A) of that section, or
                            ``(iv) a determination by the Commission 
                        under section 884(a) of this Act that results 
                        in the revocation of an injurious pricing 
                        order.
            ``(2) Exception.--Notwithstanding the limitation imposed by 
        paragraph (1)(B)(i) of this subsection, a final affirmative 
        determination by the administering authority under section 835 
        of this Act may be contested by commencing an action, in 
        accordance with the provisions of paragraph (1), within thirty 
        days after the date of publication in the Federal Register of a 
        final negative determination by the Commission under section 
        835 of this Act.
            ``(3) Procedures and fees.--The procedures and fees set 
        forth in chapter 169 of title 28 apply to an action under this 
        section.
    ``(b) Standards of Review.--
            ``(1) Remedy.--The court shall hold unlawful any 
        determination, finding, or conclusion found--
                    ``(A) in an action brought under paragraph (A) of 
                subsection (a)(1) of this section, to be arbitrary, 
                capricious, an abuse of discretion, or otherwise not in 
                accordance with law, or
                    ``(B) in an action brought under paragraph (B) of 
                subsection (a)(1) of this section, to be unsupported by 
                substantial evidence on the record, or otherwise not in 
                accordance with law.
            ``(2) Record for review.--
                    ``(A) In general.--For the purposes of this 
                subsection, the record, unless otherwise stipulated by 
                the parties, shall consist of--
                            ``(i) a copy of all information presented 
                        to or obtained by the administering authority 
                        or the Commission during the course of the 
                        administrative proceeding, including all 
                        governmental memoranda pertaining to the case 
                        and the record of ex parte meetings required to 
                        be kept by section 877(a)(2) of this title; and
                            ``(ii) a copy of the determination, all 
                        transcripts or records of conferences or 
                        hearings, and all notices published in the 
                        Federal Register.
                    ``(B) Confidential or privileged material.--The 
                confidential or privileged status accorded to any 
                documents, comments, or information shall be preserved 
                in any action under this section. Notwithstanding the 
                preceding sentence, the court may examine, in camera, 
                the confidential or privileged material, and may 
                disclose such material under such terms and conditions 
                as it may order.
    ``(c) Standing.--Any interested party who was a party to the 
proceeding under title VIII of this Act 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 
interested parties of the filing of an action under this section, in 
the form, manner, and within the time prescribed by rules of the court.
    ``(d) Definitions.--
            ``(1) Administering authority.--The term `administering 
        authority' means the administering authority described in 
        section 871(1) of this Act.
            ``(2) Commission.--The term `Commission' means the United 
        States International Trade Commission.
            ``(3) Interested party.--The term `interested party' means 
        any person described in section 871(17) of this Act.''
    (b) Paragraph (c) of section 1581 of title 28 is amended by adding 
``or 516B'' after ``section 516A''.
    (c) Section 2643 of title 28 is amended as follows:
            (1) Amend paragraph (c)(1) by deleting ``Except as provided 
        in paragraphs (2), (3), (4), and (5)'', and adding in lieu 
        thereof ``Except as provided in paragraphs (2), (3), (4), (5), 
        and (6)''.
            (2) Amend paragraph (c) by adding at the end the following 
        new paragraph:
            ``(6) In any civil action under section 516B of the Tariff 
        Act of 1930, the Court of International Trade may not issue 
        injunctions or any other form of equitable relief, except with 
        regard to implementation of a countermeasure order under 
        section 468 of this Act, upon a proper showing that such relief 
        is warranted.''

                       TITLE II--OTHER PROVISIONS

    SEC. 201. AMENDMENTS TO THE MERCHANT MARINE ACT, 1936.

    The Merchant Marine Act, 1936, as amended, as hereby further 
amended as follows:
            (a) Section 511(a)(2) (46 App. U.S.C. 1161(a)(2)) is 
        amended by inserting ``or, if the vessel is a Shipbuilding 
        Agreement vessel, constructed in a Shipbuilding Agreement 
        Party, but only with regard to monies deposited into the fund 
        on or after the date this Act takes effect'', following 
        ``constructed in the United States''.
            (b) Section 601(a) (46 App. U.S.C. 1171(a)) is amended by 
        deleting ``, and that such vessel or vessels were built in the 
        United States, or have been documented under the laws of the 
        United States not later than February 1, 1928, or actually 
        ordered and under construction for the account of citizens of 
        the United States prior to such date,'' and inserting in lieu 
        thereof ``and that such vessel or vessels were built in the 
        United States, or, if the vessel or vessels are Shipbuilding 
        Agreement vessels, in a Shipbuilding Agreement Party''.
            (c) Section 606(6) (46 App. U.S.C. 1176(6)) is amended by 
        inserting ``or, if the vessel is a Shipbuilding Agreement 
        vessel, in a Shipbuilding Agreement Party,'' prior to ``except 
        in an emergency.''.
            (d) Section 607 (46 App. U.S.C. 1177) is amended as 
        follows:
                    (1) Subsection (a) is amended by inserting ``or, if 
                the vessel is a Shipbuilding Agreement vessel, in a 
                Shipbuilding Agreement Party,'' following ``built in 
                the United States''.
                    (2) Subsection (k) is amended as follows:
                            (A) Subparagraph (1)(A) is deleted, and the 
                        following inserted in lieu thereof:
                    ``(A)(i) constructed in the United States and, if 
                reconstructed, reconstructed in the United States, or
                    ``(ii) that is a Shipbuilding Agreement vessel and 
                is constructed in a Shipbuilding Agreement Party and, 
                if reconstructed, reconstructed in a Shipbuilding 
                Agreement Party.''
                            (B) Subparagraph (2)(A) is amended to read 
                        as follows:
                    ``(A)(i) constructed in the United States and, if 
                reconstructed, reconstructed in the United States, or
                    ``(ii) that is a Shipbuilding Agreement vessel and 
                is constructed in a Shipbuilding Agreement Party and, 
                if reconstructed, reconstructed in a Shipbuilding 
Agreement Party, but only with regard to moneys deposited into the fund 
on or after the date this Act takes effect.''
    (e) Section 610 (46 App. U.S.C. 1180) is amended by deleting 
``shall be built in a domestic yard or shall have been documented under 
the laws of the United States not later than February 1, 1928, or 
actually ordered and under construction for the account of citizens of 
the United States prior to such date,'' and inserting in lieu thereof 
``shall be built in the United States or, if the vessel is a 
Shipbuilding Agreement vessel, in a Shipbuilding Agreement Party,''.
    (f) Section 901(b)(1) (46 App. U.S.C. 1241(b)(1)) is amended by 
deleting the third sentence and inserting in lieu thereof the 
following: ``For purposes of this section, the term `privately owned 
United States-flag commercial vessels' shall be deemed to include--
            ``(1) and privately owned United States-flag commercial 
        vessel constructed in the United States,
            ``(2) any privately owned liner vessel constructed in a 
        Shipbuilding Agreement Party, and if reconstructed, 
        reconstructed in a Shipbuilding Agreement Party, that is 
        documented pursuant to chapter 121 of title 46, United States 
        Code and is less than five years of age on the date of such 
        documentation, and
            ``(3) any privately owned bulk cargo vessel constructed or 
        delivered by a shipyard located in a Shipbuilding Agreement 
        Party after January 1, 1993. The term `privately owned United 
        States-flag commercial vessels' shall also be deemed to include 
        any liner or bulk cargo vessel that so qualified pursuant to 
        section 615 of title VI or section 901(b)(1) of title IX of 
        this Act, prior to entry into force of the Shipbuilding 
        Agreement with respect to the United States. The term 
        `privately owned United States-flag commercial vessels' shall 
        not be deemed to include any liquid bulk cargo vessel that does 
        not meet the requirements of section 3703a of title 46, United 
        States Code.''
    (g) Section 905 (46 App. U.S.C. 1244) is amended by adding a new 
subsection (h) as follows:
    ``(h)(1) The term `Shipbuilding Agreement' means the Agreement 
Respecting Normal Competitive Conditions in the Commercial Shipbuilding 
and Repair Industry and the related Understanding on Export Credits for 
Ships, resulting from negotiations under the auspices of the 
Organization for Economic Cooperation and Development, entered into on 
December 21, 1994.
    ``(2) The term, `Shipbuilding Agreement Party' means a state or 
separate customs territory that is a Party to the Shipbuilding 
Agreement, and with respect to which the United States applies the 
Shipbuilding Agreement.
    ``(3) The term, `Shipbuilding Agreement vessel' means a vessel that 
the Secretary determines to be within the scope of Article 2.1 of the 
Shipbuilding Agreement.
    ``(4) The term, `Export Credit Understanding' means the 
Understanding on Export Credits for Ships (OECD document C/WP6(94)6), 
including any amendments thereto.
    ``(5) The term, `Export Credit Understanding vessel' means a vessel 
that the Secretary determines to be within the scope of the Export 
Credit Understanding.''
    (h) Section 1104A (46 App. U.S.C. 1274) is amended as follows:
            (1) Paragraph (b)(5) is amended to read as follows:
            ``(5) shall bear interest (exclusive of charges for the 
        guarantee and service charges, if any) at rates not to exceed 
        such per centum per annum of the unpaid principal as the 
        Secretary determines to be reasonable, taking into account the 
        range of interest rates prevailing in the private market for 
        similar loans and the risks assumed by the Secretary: Provided, 
        however, That, so long as the Export Credit Understanding 
        remains in force with respect to the United States, with 
        respect to Export Credit Understanding vessels the obligations 
        shall bear interest at a rate the Secretary determines to be 
        consistent with the Export Credit Understanding.''
            (2) Subsection (i) is amended to read as follows:
    ``(i) Limitation on Establishment of Percentage.--(1) Except as 
provided in paragraph (2), the Secretary may not, with respect to--
            ``(A) the general 75 percent or less limitation in 
        subsection (b)(2);
            ``(B) the 87\1/2\ percent or less limitation in the 1st, 
        2nd, 4th, or 5th proviso to subsection (b)(2) or section 
        1112(b); or
            ``(C) the 80 percent or less limitation in the 3rd proviso 
        to such subsection;
establish by rule, regulation, or procedure any percentage within any 
such limitation that is, or is intended to be, applied uniformly to all 
guarantees or commitments to guarantee made under this section that are 
subject to the limitation.
    ``(2) With respect to Export Credit Understanding vessels, the 
Secretary may establish by rule, regulation, or procedure a uniform 
percentage that the Secretary determines to be consistent with the 
Export Credit Understanding, provided, however, the Export Credit 
Understanding remains in force with respect to the United States.''
    (i) Section 1104B(b) (46 App. U.S.C. 1274a(b)) is amended by 
deleting the period at the end and adding the following: ``, but, with 
respect to Export Credit Understanding vessels, the Secretary may 
establish by rule, regulation, or procedure a uniform percentage that 
the Secretary determines to be consistent with the Export Credit 
Understanding, Provided, however, That the Export Credit Understanding 
remains in force with respect to the United States.''

SEC. 203. EQUIPMENT AND REPAIR OF VESSELS.

    Section 466 of the Tariff Act of 1930 (19 U.S.C. 1466), is amended 
by the addition of a new subsection (i) as follows:
    ``(i) The duty imposed by subparagraph (a) of this section shall 
not apply with respect to activities occurring in a Shipbuilding 
Agreement Party, as defined in section 1244 of the appendix to Title 
46, with respect to (a) self-propelled seagoing vessels of 100 gross 
tons and above and used for transportation of goods or persons or for 
performance of a specialized service (including but not limited to ice 
breakers and dredges) and (b) tugs of 365 kw and over. A vessel shall 
be considered `self-propelled seagoing' if its permanent propulsion and 
steering provide it all the characteristics of self-navigability in the 
high seas.''

SEC. 204. EFFECT OF AGREEMENT WITH RESPECT TO PRIVATE REMEDIES.

    No person other than the United States--
            (a) shall have any cause of action or defense under the 
        Shipbuilding Agreement or by virtue of congressional approval 
        of the agreement, or
            (b) may challenge, in any action brought under any 
        provision of law, any action or inaction by any department, 
        agency, or other instrumentality of the United States, any 
        State, or any political subdivision of a State on the ground 
        that such action or inaction is inconsistent with such 
        agreement.

SEC. 205. IMPLEMENTING REGULATIONS.

    After the date of the enactment of this Act, responsible officers 
of the United States Government may issue such regulations as may be 
necessary to ensure that this Act is appropriately implemented on the 
date the Shipbuilding Agreement enters into force with respect to the 
United States.

SEC. 206. MONITORING COMPLIANCE WITH THE SHIPBUILDING AGREEMENT.

    (a) Title III of the Trade Act of 1979, as amended, is further 
amended by the addition of the following:

``SEC. 311. MONITORING COMPLIANCE WITH THE SHIPBUILDING AGREEMENT.

    ``(a) Monitoring.--The Trade Representative, in consultation with 
the Secretary, shall monitor the compliance of each Shipbuilding 
Agreement Party with the Shipbuilding Agreement.
    ``(b) Preliminary Determinations of Noncompliance.--
            ``(1) Anniversary date.--
                    ``(A) On each anniversary of the date of the 
                enactment of this Act, the Trade Representative shall 
                make a preliminary determination, on the basis of the 
                monitoring under subsection (a), as to whether any 
                Shipbuilding Agreement Party is in noncompliance with 
                the Shipbuilding Agreement.
                    ``(B) The Trade Representative shall, within 7 days 
                after the anniversary date, publish in the Federal 
                Register a notice setting forth--
                            ``(i) each preliminary determination made 
                        under this subsection, together with a 
                        statement of the basis therefor, and a request 
                        for public comments thereon within 30 days of 
                        the date of the Federal Register notice; and
                            ``(ii) the results of the monitoring under 
                        subsection (a).
            ``(2) Receipt of information.--
                    ``(A) The Trade Representative shall also make a 
                preliminary determination as to whether a Shipbuilding 
                Agreement Party is in noncompliance with the 
                Shipbuilding Agreement within 30 days after the receipt 
                of information alleging that there are reasonable 
                grounds to suspect such noncompliance.
                    ``(B) The Trade Representative shall, within 7 days 
                after the determination under subparagraph (A), publish 
                in the Federal Register a notice setting forth each 
                preliminary determination made under this subsection, 
                together with a statement of the basis therefor, and a 
                request for public comments thereon within 30 days of 
                the date of the Federal Register notice.
    ``(c) Final Determinations of Noncompliance.--Within 60 days after 
the date of publication of a Federal Register notice under subsection 
(b), the Trade Representative shall publish a notice in Federal 
Register setting forth a final determination, together with a statement 
of the basis therefor, as to whether a Shipbuilding Agreement Party is 
in noncompliance with the Shipbuilding Agreement.
    ``(d) Action by the Trade Representative Regarding Noncompliance.--
Within 15 days of the date of publication of a Federal Register notice 
under section (c) in which a Shipbuilding Agreement Party has been 
determined to be in noncompliance with the Shipbuilding Agreement, the 
Trade Representative shall--
            ``(1) notify the Shipbuilding Agreement Party; and
            ``(2) either--
                    ``(A) invoke the dispute settlement procedures of 
                the Shipbuilding Agreement, or
                    ``(B) take any other appropriate action.''
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