[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3032 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  1st Session
                                S. 3032

To require certain manufactured goods introduced for sale in the United 
 States to have a domestic value content of more than 50 percent, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 20, 2021

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

_______________________________________________________________________

                                 A BILL


 
To require certain manufactured goods introduced for sale in the United 
 States to have a domestic value content of more than 50 percent, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Make in America to Sell in America 
Act of 2021''.

SEC. 2. FINDINGS; SENSE OF CONGRESS.

    (a) Findings.--Congress makes the following findings:
            (1) Excessive globalization has been a disaster for United 
        States workers in the manufacturing sector.
            (2) The erosion of the domestic industrial base of the 
        United States is the result of the lack of adequate protection 
        for both domestic industry and United States workers from 
        import competition.
            (3) Since 2001, approximately 60,000 factories have 
        shuttered in the United States.
            (4) The COVID-19 pandemic revealed the degree to which the 
        United States is dependent on the People's Republic of China 
        for certain critical manufactured goods.
            (5) The United States currently mandates domestic sourcing 
        by requiring certain government agencies to purchase only goods 
        that are produced in whole or in part in the United States.
    (b) Sense of Congress.--It is the sense of Congress that a targeted 
regime of local content requirements across manufactured goods sold in 
the United States should be deployed to boost domestic industry, 
repatriate supply chains, and nurture infant industries.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Commission.--The term ``Commission'' means the United 
        States International Trade Commission.
            (2) Covered good.--The term ``covered good'' means a good 
        identified by the Secretary of Commerce in the report required 
        by section 4.
            (3) Introduce for sale.--The term ``introduce for sale'', 
        with respect to a good, means to import the good into the 
        United States or produce the good for consumption in the United 
        States.

SEC. 4. IDENTIFICATION OF CRITICAL GOODS.

    (a) In General.--Not later than one year after the date of the 
enactment of this Act, and annually thereafter, the Secretary of 
Commerce, in consultation with the Secretary of Defense, shall submit 
to Congress and make available to the public a report that identifies 
finished goods and intermediate goods the domestic production of which 
is critical for the protection of the industrial base in the United 
States or for the national security of the United States.
    (b) Considerations.--In considering whether the production of a 
good is critical for the protection of the industrial base or for the 
national security of the United States, the Secretary of Commerce may 
consider--
            (1) the relative lack of the domestic production of the 
        good compared to domestic demand for the good;
            (2) the extent to which the global supply chain of the good 
        is vulnerable; and
            (3) the employment effects of restoring or establishing 
        production of the good in the United States.

SEC. 5. MINIMUM DOMESTIC CONTENT REQUIREMENT.

    (a) In General.--Except as provided in subsection (c) or (d), a 
covered good may not be introduced for sale in the United States unless 
the domestic value content of the good is more than 50 percent.
    (b) Domestic Value Content.--
            (1) Calculation.--The domestic value content of a covered 
        good may be calculated on the basis of the following 
        transaction value method:


                         TV-VNM                   ......................
DVC =                    ----------                x  100
                         TV                       ......................
 

            (2) Definitions.--In this subsection:
                    (A) DVC.--The term ``DVC'' means the domestic value 
                content of the good, expressed as a percentage.
                    (B) Originating good; originating material.--
                            (i) In general.--The terms ``originating 
                        good'' and ``originating material'' mean a good 
                        or material, as the case may be--
                                    (I) wholly obtained or produced 
                                entirely in the United States; or
                                    (II) substantially transformed in 
                                the United States from a good or 
                                material that is not wholly the growth, 
                                product, or manufacture of the United 
                                States.
                            (ii) Remanufactured goods.--For purposes of 
                        determining whether a remanufactured good is an 
                        originating good, a recovered material derived 
                        in the United States shall be treated as an 
                        originating material if the material is used or 
                        consumed in the production of, and 
                        incorporation into, the manufactured good.
                    (C) Nonoriginating good; nonoriginating material.--
                The terms ``nonoriginating good'' and ``nonoriginating 
                material'' mean a good or material, as the case may be, 
                that does not qualify as originating under subparagraph 
                (B).
                    (D) TV.--The term ``TV'' means the transaction 
                value of the good, adjusted to exclude any costs 
                incurred in the international shipment of the good.
                    (E) VNM.--The term ``VNM'' means the value of 
                nonoriginating goods or nonoriginating materials used 
                by the producer in the production of the good.
            (3) Value of nonoriginating materials.--For purposes of 
        calculating the domestic value content of a good under this 
        subsection, the value of nonoriginating materials used by the 
        producer in the production of the good shall not include the 
        value of nonoriginating materials used or consumed to produce 
        originating materials that are subsequently used or consumed in 
        the production of the good.
    (c) Exceptions.--The prohibition under subsection (a) does not 
apply with respect to--
            (1) used goods; or
            (2) goods introduced for sale in the United States by any 
        person with annual revenue of less than $5,000,000.
    (d) Waiver.--
            (1) In general.--The President may waive the application of 
        subsection (a) with respect to a covered good if the 
        President--
                    (A) determines that--
                            (i) the covered good is not available for 
                        sale in the United States in a manner that 
                        meets the minimum domestic content requirement 
                        under subsection (a);
                            (ii) the development of domestic production 
                        of the covered good to meet the consumptive 
                        demand of the United States is substantially 
                        time-intensive or capital-intensive compared 
                        with other covered goods; or
                            (iii) a delay in the application of the 
                        requirement under subsection (a) is critical 
                        for the national security of the United States; 
                        and
                    (B) submits to Congress and makes available to the 
                public a report on the reasons for the waiver.
            (2) Effective period.--A waiver issued under paragraph (1) 
        with respect to a covered good terminates on the date that is 3 
        years after the date on which the President submits the report 
        required by paragraph (1)(B) with respect to the waiver.
            (3) Prohibition on renewal.--A waiver issued under 
        paragraph (1) may not be renewed.
            (4) Briefings required.--Not less frequently than annually, 
        the President shall brief the Committee on Finance of the 
        Senate and the Committee on Ways and Means of the House of 
        Representatives with respect to the waivers issued under 
        paragraph (1) and the determinations made under paragraph 
        (1)(A) with respect to those waivers during the preceding year.
            (5) Public list.--Not less frequently than annually, the 
        President shall make available to the public a list of all 
        waivers issued under paragraph (1) during the preceding year.
    (e) Regulations.--The Secretary of Commerce, in consultation with 
the Commissioner of U.S. Customs and Border Protection, shall prescribe 
regulations and guidance to carry out this section, including with 
respect to the calculation and applicability of the minimum domestic 
content requirement under subsection (a).

SEC. 6. ENFORCEMENT.

    (a) In General.--
            (1) Penalties.--If the Secretary of Commerce determines 
        that a person introduces for sale, or causes to be introduced 
        for sale, a covered good in the United States in violation of 
        section 4(a), that person shall be liable for a civil penalty 
        not to exceed the greater of--
                    (A) the amount that is twice the total transaction 
                value of the good; or
                    (B) $5,000,000.
            (2) Considerations.--In making a determination under 
        paragraph (1) with respect to an alleged violation of section 
        4(a), the Secretary of Commerce shall consider the findings of 
        the Commission pursuant to an investigation conducted under 
        subsection (b) with respect to the alleged violation.
    (b) Investigations by Commission.--
            (1) Petitions.--The Commission may initiate an 
        investigation into an alleged violation of section 4(a) with 
        respect to a covered good upon the filing of a petition by a 
        domestic producer of the covered good or the Secretary of 
        Commerce.
            (2) Notification.--Upon receipt of a petition filed under 
        paragraph (1), the Commission shall notify the person alleged 
        to have violated section 4(a) of the petition and the 
        allegations included in the petition.
            (3) Initiation of investigation.--Not later than 20 days 
        after receiving a petition filed under paragraph (1), the 
        Commission shall--
                    (A) after examining, on the basis of sources 
                readily available, the accuracy and adequacy of the 
                allegations included in the petition, determine whether 
                the petition--
                            (i) alleges the elements necessary for the 
                        imposition of a penalty under subsection 
                        (a)(1); and
                            (ii) contains information reasonably 
                        available to the petitioner supporting the 
                        allegations;
                    (B) determine whether the covered good that is the 
                subject of the petition is covered by a waiver issued 
                under section 4(c); and
                    (C) if the determination under subparagraph (A) is 
                affirmative and the determination under subparagraph 
                (B) is negative, initiate an investigation.
            (4) Findings.--
                    (A) In general.--Not later than 60 days after 
                initiating an investigation under paragraph (3)(C), and 
                after soliciting public comments, soliciting evidence 
                from the parties, and examining other relevant sources, 
                the Commission shall make a finding with respect to 
                whether, based on a preponderance of evidence, the 
                person that is the subject of the investigation has 
                violated section 4(a).
                    (B) Notifications.--If the finding of the 
                Commission under subparagraph (A) is affirmative, the 
                Commission shall--
                            (i) notify all parties to the investigation 
                        of the finding; and
                            (ii) make available to the public the facts 
                        and conclusions upon which the finding was 
                        based.
            (5) Withdrawal of petitions.--The Commission may terminate 
        an investigation initiated under paragraph (3), after notice to 
        all parties to the investigation, if the petition filed under 
        paragraph (1) is withdrawn by the petitioner.
            (6) Staff.--The Commission may hire sufficient staff to 
        carry out investigations under this subsection.
            (7) Regulations.--The Commission may prescribe regulations 
        and guidance as necessary to carry out this subsection.

SEC. 7. APPLICABILITY.

    The provisions of this Act apply with respect to goods introduced 
for sale in the United States on and after the date that is 3 years 
after the date of the enactment of this Act.
                                 <all>