[House Report 104-524]
[From the U.S. Government Publishing Office]




104th Congress                                            Rept. 104-524
                      HOUSE OF REPRESENTATIVES 
 2d Session                                                      Part 2
_______________________________________________________________________


 
                   SHIPBUILDING TRADE AGREEMENT ACT

                               __________

                              R E P O R T

                                 of the

                     COMMITTEE ON NATIONAL SECURITY
                        HOUSE OF REPRESENTATIVES

                                   ON

                               H.R. 2754

                             together with

                            DISSENTING VIEWS

      [Including cost estimate of the Congressional Budget Office]




  May 30, 1996.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed


                  HOUSE COMMITTEE ON NATIONAL SECURITY
                      One Hundred Fourth Congress

 FLOYD D. SPENCE, South Carolina, 
             Chairman
RONALD V. DELLUMS, California        BOB STUMP, Arizona
G.V. (SONNY) MONTGOMERY, Mississippi DUNCAN HUNTER, California
PATRICIA SCHROEDER, Colorado         JOHN R. KASICH, Ohio
IKE SKELTON, Missouri                HERBERT H. BATEMAN, Virginia
NORMAN SISISKY, Virginia             JAMES V. HANSEN, Utah
JOHN M. SPRATT, Jr., South Carolina  CURT WELDON, Pennsylvania
SOLOMON P. ORTIZ, Texas              ROBERT K. DORNAN, California
OWEN PICKETT, Virginia               JOEL HEFLEY, Colorado
LANE EVANS, Illinois                 JIM SAXTON, New Jersey
JOHN TANNER, Tennessee               RANDY ``DUKE'' CUNNINGHAM, 
GLENN BROWDER, Alabama               California
GENE TAYLOR, Mississippi             STEVE BUYER, Indiana
NEIL ABERCROMBIE, Hawaii             PETER G. TORKILDSEN, Massachusetts
CHET EDWARDS, Texas                  TILLIE K. FOWLER, Florida
FRANK TEJEDA, Texas                  JOHN M. McHUGH, New York
MARTIN T. MEEHAN, Massachusetts      JAMES TALENT, Missouri
ROBERT A. UNDERWOOD, Guam            TERRY EVERETT, Alabama
JANE HARMAN, California              ROSCOE G. BARTLETT, Maryland
PAUL McHALE, Pennsylvania            HOWARD ``BUCK'' McKEON, California
PETE GEREN, Texas                    RON LEWIS, Kentucky
PETE PETERSON, Florida               J.C. WATTS, Jr. Oklahoma
WILLIAM J. JEFFERSON, Louisiana      MAC THORNBERRY, Texas
ROSA L. DeLAURO, Connecticut         JOHN N. HOSTETTLER, Indiana
MIKE WARD, Kentucky                  SAXBY CHAMBLISS, Georgia
PATRICK J. KENNEDY, Rhode Island     VAN HILLEARY, Tennessee
                                     JOE SCARBOROUGH, Florida
                                     WALTER B. JONES, Jr., North 
                                     Carolina
                                     JAMES B. LONGLEY, Jr., Maine
                                     TODD TIAHRT, Kansas
                                     RICHARD `DOC' HASTINGS, Washington
  Andrew K. Ellis, Staff Director


                            C O N T E N T S

                              ----------                              
                                                                   Page
Purpose and Summary..............................................    38
Background and Need for Legislation..............................    39
Legislative History..............................................    39
Section-by-Section Analysis:
    Title I--Injurious Pricing and Countermeasures...............    40
    Title II--Other Provisions...................................    41
Departmental Data................................................    43
Committee Position...............................................    46
Fiscal Data:
    Congressional Budget Office Estimate.........................    47
    Congressional Budget Office Cost Estimate....................    47
    Committee Cost Estimate......................................    48
    Inflation-Impact Statement...................................    49
Oversight Findings...............................................    49
Rollcall Vote....................................................    49
Changes in Existing Law Made by the Bill, as Reported............    51
Dissenting Views of Hon. Tillie Fowler...........................   111



104th Congress                                            Rept. 104-524
                        HOUSE OF REPRESENTATIVES

 2d Session                                                      Part 2
_______________________________________________________________________


                    SHIPBUILDING TRADE AGREEMENT ACT

_______________________________________________________________________


  May 30, 1996.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______


  Mr. Spence, from the Committee on National Security, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 2754]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on National Security, to whom was referred 
the bill (H.R. 2754) to approve and implement the OECD 
Shipbuilding Trade Agreement, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.

  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

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 
(hereafter in this Act referred to as the ``Shipbuilding Agreement''), 
a reciprocal trade agreement which resulted from negotiations under the 
auspices of the Organization for Economic Cooperation and Development, 
and was entered into on December 21, 1994.

SEC. 3. EFFECTIVE DATE.

  Except as provided in section 205, this Act and the amendments made 
by this Act take 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 is amended by adding at the end the following 
new title:

    ``TITLE VIII--INJURIOUS PRICING AND COUNTERMEASURES RELATING TO 
                              SHIPBUILDING

       ``Subtitle A--Injurious Pricing Charge and Countermeasures

        ``Sec. 801. Injurious pricing charge.
        ``Sec. 802. Procedures for initiating an injurious pricing 
                        investigation.
        ``Sec. 803. Preliminary determinations.
        ``Sec. 804. Termination or suspension of investigation.
        ``Sec. 805. Final determinations.
        ``Sec. 806. Imposition and collection of injurious pricing 
                        charge.
        ``Sec. 807. Imposition of countermeasures.
        ``Sec. 808. Injurious pricing petitions by third countries.
        ``Sec. 809. Third Country Sales.

                      ``Subtitle B--Special Rules

        ``Sec. 821. Export price.
        ``Sec. 822. Normal value.
        ``Sec. 823. Currency conversion.

                        ``Subtitle C--Procedures

        ``Sec. 841. Hearings.
        ``Sec. 842. Determinations on the basis of the facts available.
        ``Sec. 843. Access to information.
        ``Sec. 844. Conduct of investigations.
        ``Sec. 845. Administrative action following shipbuilding 
                        agreement panel reports.

                       ``Subtitle D--Definitions

        ``Sec. 861. Definitions.

       ``Subtitle A--Injurious Pricing Charge and Countermeasures

``SEC. 801. INJURIOUS PRICING CHARGE.

  ``(a) Basis for Charge.--If--
          ``(1) the administering authority determines that a foreign 
        vessel 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 805(b)(1), a 
        reference to the sale of a foreign vessel includes the creation 
        or transfer of an ownership interest in the vessel, except for 
        an ownership interest created or acquired solely for the 
        purpose of providing security for a normal commercial loan.
  ``(b) Foreign Vessels Not Merchandise.--No foreign vessel may be 
considered to be, or to be part of, a class or kind of merchandise for 
purposes of subtitle B of title VII.

``SEC. 802. PROCEDURES FOR INITIATING AN INJURIOUS PRICING 
                    INVESTIGATION.

  ``(a) Initiation by Administering Authority.--
          ``(1) General rule.--Except in the case in which subsection 
        (d)(6) applies, an injurious pricing investigation shall be 
        initiated whenever the administering au- 
        thority 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 charge under 
        section 801(a) exist, and whether a producer described in 
        section 861(17)(C) would meet the criteria of subsection 
        (b)(1)(B) for a petitioner.
          ``(2) Time for initiation by administering authority.--An 
        investigation may only be initiated under paragraph (1) within 
        6 months after the time the administering authority first knew 
        or should have known of the sale of the vessel. Any period in 
        which subsection (d)(6)(A) applies shall not be included in 
        calculating that 6-month period.
  ``(b) Initiation by Petition.--
          ``(1) Petition requirements.--(A) Except in a case in which 
        subsection (d)(6) applies, an injurious pricing proceeding 
        shall be initiated whenever an interested party, as defined in 
        subparagraph (C), (D), (E), or (F) of section 861(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 801(a) 
        and the elements required under subparagraph (B), (C), (D), or 
        (E) of this paragraph, and which is accompanied by information 
        reasonably available to the petitioner supporting those 
        allegations and identifying the transaction concerned.
          ``(B)(i) If the petitioner is a producer described in section 
        861(17)(C), and--
                  ``(I) if the petitioner was invited to tender a bid 
                on the contract at issue, the petition shall include 
                information indicating that the petitioner actually did 
                so and the bid of the petitioner substantially met the 
                delivery date and technical requirements of the bid, or
                  ``(II) if the petitioner was not invited to tender a 
                bid, the petition shall include information indicating 
                that the petitioner was capable of building the vessel 
                concerned and, if the petitioner knew or should have 
                known of the proposed purchase, it made demonstrable 
                efforts to conclude a sale with the United States buyer 
                consistent with the delivery date and technical 
                requirements of the buyer.
          ``(ii) For purposes of clause (i)(II), there is a rebuttable 
        presumption that the petitioner knew or should have known of 
        the proposed purchase if it is demonstrated that--
                  ``(I) the majority of the producers in the industry 
                have made efforts with the United States buyer to 
                conclude a sale of the subject vessel, or
                  ``(II) general information on the sale was available 
                from brokers, financiers, classification societies, 
                charterers, trade associations, or other entities 
                normally involved in shipbuilding transactions with 
                whom the petitioner had regular contacts or dealings.
          ``(C) If the petitioner is an interested party described in 
        section 861(17)(D), the petition shall include information 
        indicating that members of the union or group of workers 
        described in that section are employed by a producer that meets 
        the requirements of subparagraph (B) of this paragraph.
          ``(D) If the petitioner is an interested party described in 
        section 861(17)(E), the petition shall include information 
        indicating that a member of the association described in that 
        section is a producer that meets the requirements of 
        subparagraph (B) of this paragraph.
          ``(E) If the petitioner is an interested party described in 
        section 861(17)(F), the petition shall include information 
        indicating that a member of the association described in that 
        section meets the requirements of subparagraph (C) or (D) of 
        this paragraph.
          ``(F) 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) Deadline.--(i) A petitioner to which paragraph 
                (1)(B)(i)(I) applies shall file the petition no later 
                than the earlier of--
                          ``(I) 6 months after the time that the 
                        petitioner first knew or should have known of 
                        the sale of the subject vessel, or
                          ``(II) 6 months after delivery of the subject 
                        vessel.
                  ``(ii) A petitioner to which paragraph (1)(B)(i)(II) 
                applies shall--
                          ``(I) file the petition no later than the 
                        earlier of 9 months after the time that the 
                        petitioner first knew or should have known of 
                        the sale of the subject vessel, or 6 months 
                        after delivery of the subject vessel, and
                          ``(II) submit to the administering authority 
                        a notice of intent to file a petition no later 
                        than 6 months after the time that the 
                        petitioner first knew or should have known of 
                        the sale (unless the petition itself is filed 
                        within that 6-month period).
                  ``(B) Presumption of knowledge.--For purposes of this 
                paragraph, 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.
  ``(c) Actions Before Initiating Investigations.--
          ``(1) Notification of governments.--Before initiating an 
        investigation under either subsection (a) or (b), the 
        administering authority shall notify the government of the 
        exporting country of the investigation. In the case of the 
        initiation of an investigation under subsection (b), such 
        notification shall include a public version of the petition.
          ``(2) 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 861(17)(C), (D), (E), or (F) before the 
        administering authority makes its decision whether to initiate 
        an investigation pursuant to a petition, 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.
          ``(3) 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 subsection (b)(1).
  ``(d) 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 
                801(a) and the elements required under subsection 
                (b)(1)(B), (C), (D), or (E), 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 included in calculating the 45-day period described in 
        subparagraph (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) applies.
          ``(3) Negative determinations.--If--
                  ``(A) the determination under clause (i) or (ii) of 
                paragraph (1)(A) is negative, or
                  ``(B) 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 a 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 a 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 of the subject vessel, 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 a like vessel--
                          ``(i) the administering authority shall 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 
                861(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 
        861(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, an 
        antidumping proceeding conducted by 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 the 
                imposition of antidumping measures or a negative 
                determination with respect to whether the sale was at 
                less than fair value or with respect to injury.
  ``(e) Notification to Commission of Determination.--The administering 
authority shall--
          ``(1) notify the Commission immediately of any determination 
        it makes under subsection (a) or (d), 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. 803. 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 
        802(d)(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 or, in 
        the case of an investigation initiated under section 802(a), 
        within 90 days after the date on which the Commission receives 
        notice from the administering authority that the investigation 
        has been initiated.
  ``(b) Preliminary Determination by Administering Authority.--
          ``(1) Period of injurious pricing investigation.--(A) 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 subject vessel was sold at less 
        than fair value.
          ``(B) 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, the administering 
        authority shall make its determination within 160 days after 
        the date of delivery of the foreign like vessel.
          ``(C) If normal value is to be determined on the basis of 
        constructed value, the administering authority shall make its 
        determination within 160 days after the date of delivery of the 
        subject vessel.
          ``(D) In cases in which subparagraph (B) or (C) does not 
        apply, the administering authority shall make its determination 
        within 160 days after the date on which the administering 
        authority initiates the investigation under section 802.
          ``(E) In no event shall the administering authority make its 
        determination before an affirmative determination is made by 
        the Commission under subsection (a).
          ``(2) 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. For purposes of the preceding sentence, an 
        injurious pricing margin is de minimis if the administering 
        authority determines that the margin is less than 2 percent of 
        the export price.
  ``(c) Extension of Period in Extraordinarily Complicated Cases or for 
Good Cause.--
          ``(1) In general.--If--
                  ``(A) the administering authority concludes that the 
                parties concerned are cooperating and determines that--
                          ``(i) the case is 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
                  ``(B) 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 its preliminary determination.
          ``(2) Length of postponement.--The preliminary determination 
        may be postponed under paragraph (1)(A) or (B) until not later 
        than the 190th day after--
                  ``(A) the date of delivery of the foreign like 
                vessel, if subsection (b)(1)(B) applies,
                  ``(B) the date of delivery of the subject vessel, if 
                subsection (b)(1)(C) applies, or
                  ``(C) the date on which the administering authority 
                initiates an investigation under section 802, in a case 
                in which subsection (b)(1)(D) applies.
          ``(3) Notice of postponement.--The administering authority 
        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. 804. 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 803(b).
  ``(b) Termination of Investigations Initiated by Administering 
Authority.--The administering authority may terminate any investigation 
initiated by the administering authority under section 802(a) after 
providing notice of such termination to all parties to the 
investigation.
  ``(c) Alternate Equivalent Remedy.--The criteria set forth in 
subparagraphs (A) through (D) of section 806(e)(1) shall apply to any 
agreement that forms the basis for termination of an investigation 
under subsection (a) or (b).
  ``(d) Proceedings by WTO Members.--
          ``(1) Suspension of investigation.--The administering 
        authority and the Commission shall suspend an investigation 
        under this section if a WTO member that is not a Shipbuilding 
        Agreement Party initiates an antidumping proceeding described 
        in section 861(29)(A) with respect to the sale of the subject 
        vessel.
          ``(2) Termination of investigation.--If an antidumping 
        proceeding described in paragraph (1) is concluded by--
                  ``(A) the imposition of antidumping measures, or
                  ``(B) 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) Continuation of investigation.--(A) If such a 
        proceeding--
                  ``(i) is concluded by a result other than a result 
                described in paragraph (2), or
                  ``(ii) is not concluded within one year from the date 
                of the 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 be 
        included in calculating deadlines applicable with respect to 
        the investigation.
          ``(B) Notwithstanding subparagraph (A)(ii), if the proceeding 
        is concluded by a result described in paragraph (2)(A), the 
        administering authority and the Commission shall terminate the 
        investigation under this section.

``SEC. 805. FINAL DETERMINATIONS.

  ``(a) Determinations by Administering Authority.--
          ``(1) In general.--Within 75 days after the date of its 
        preliminary determination under section 803(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.--(A) The 
        administering authority may postpone making the final 
        determination under paragraph (1) until not later than 290 days 
        after--
                  ``(i) the date of delivery of the foreign like 
                vessel, in an investigation to which section 
                803(b)(1)(B) applies,
                  ``(ii) the date of delivery of the subject vessel, in 
                an investigation to which section 803(b)(1)(C) applies, 
                or
                  ``(iii) the date on which the administering authority 
                initiates the investigation under section 802, in an 
                investigation to which section 803(b)(1)(D) applies.
          ``(B) The administering authority may apply subparagraph (A) 
        if a request in writing is made by--
                  ``(i) the producer of the subject vessel, in a 
                proceeding in which the preliminary determination by 
                the administering authority under section 803(b) was 
                affirmative, or
                  ``(ii) the petitioner, in a proceeding in which the 
                preliminary determination by the administering 
                authority under section 803(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 803(b)(2).
  ``(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).
          ``(2) Period for injury determination following affirmative 
        preliminary determination by administering authority.--If the 
        preliminary determination by the administering authority under 
        section 803(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 803(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 803(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 subject 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 806. 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. 806. 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 805(b), the 
administering authority shall publish an order imposing an injurious 
pricing charge on the foreign producer of the subject vessel which--
          ``(1) directs the foreign 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 of 
        the subject vessel,
          ``(2) includes the identity and location of the foreign 
        producer and a description of the subject vessel, in such 
        detail as the administering authority deems necessary, and
          ``(3) informs the foreign 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 807,
                  ``(B) payment made after the deadline described in 
                paragraph (1) shall be subject to interest charges at 
                the Commercial Interest Reference Rate (CIRR), and
                  ``(C) the foreign producer may request an extension 
                of the due date for payment under subsection (b).
  ``(b) Extension of Due Date for Payment in Extraordinary 
Circumstances.--
          ``(1) Extension.--Upon request, the administering authority 
        may amend the order under subsection (a) 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 the administering 
        authority determines that full payment in 180 days would render 
        the producer insolvent or would be incompatible with a 
        judicially supervised reorganization. When an extended payment 
        schedule provides for a series of partial payments, the 
        administering authority shall specify the circumstances under 
        which default on one or more payments will result in the 
        imposition of countermeasures.
          ``(2) Interest charges.--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 at the CIRR.
  ``(c) Notification of Order.--The administering authority shall 
deliver a copy of the order requesting payment to the foreign producer 
of the subject vessel and to an appropriate representative of the 
government of the exporting country.
  ``(d) Revocation of Order.--The administering authority--
          ``(1) may revoke an injurious pricing order if the 
        administering authority determines that producers accounting 
        for substantially all of the capacity to produce a domestic 
        like vessel have expressed a lack of interest in the order, and
          ``(2) shall revoke an injurious pricing order--
                  ``(A) if the sale of the vessel that was the subject 
                of the injurious pricing determination is voided,
                  ``(B) if the injurious pricing charge is paid in 
                full, including any interest accrued for late payment,
                  ``(C) upon full implementation of an alternative 
                equivalent remedy described in subsection (e), or
                  ``(D) if, 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 a WTO member who is not a Shipbuilding 
                Agreement Party has been completed and resulted in the 
                imposition of antidumping measures.
  ``(e) Alternative Equivalent Remedy.--
          ``(1) Agreement for alternate remedy.--The administering 
        authority may suspend an injurious pricing order if the 
        administering authority enters into an agreement with the 
        foreign producer subject to the order 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 consultations and submission of comments.--Before 
        entering into an agreement under paragraph (1), the 
        administering authority shall consult with the industry, and 
        provide for the submission of comments by interested parties, 
        with respect to the agreement.
          ``(3) Material violations of agreement.--If the injurious 
        pricing order has been suspended under paragraph (1), and the 
        administering authority determines that the foreign producer 
        concerned has materially violated the terms of the agreement 
        under paragraph (1), the administering authority shall 
        terminate the suspension.

``SEC. 807. IMPOSITION OF COUNTERMEASURES.

  ``(a) General Rule.--
          ``(1) Issuance of order imposing countermeasures.--Unless an 
        injurious pricing order is revoked or suspended under section 
        806 (d) or (e), the administering authority shall issue an 
        order imposing countermeasures.
          ``(2) Contents of order.--The countermeasure order shall--
                  ``(A) state that, as provided in section 468, 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 806, and
                  ``(B) specify the scope and duration of the 
                prohibition on the issuance of a permit to lade or 
                unlade passengers or merchandise.
  ``(b) Notice of Intent To Impose Countermeasures.--
          ``(1) General rule.--The administering authority shall issue 
        a notice of intent to impose countermeasures not later than 30 
        days before the expiration of the time for payment specified in 
        the injurious pricing order (or extended payment provided for 
        under section 806(b)), and shall publish the notice in the 
        Federal Register within 7 days after issuing the notice.
          ``(2) Elements of the notice of intent.--The notice of intent 
        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--
                          ``(i) built by the foreign producer subject 
                        to the proposed countermeasures, and
                          ``(ii) with respect to which the material 
                        terms of sale are established within a period 
                        of 4 consecutive years beginning on the date 
                        that is 30 days after publication in the Fedeal 
                        Register of the notice of intent described in 
                        paragraph (1).
                  ``(B) Duration.--For each vessel described in 
                subparagraph (A), a permit to lade or unlade passengers 
                or merchandise may not be issued for a period of 4 
                years after the date of delivery of the vessel.
  ``(c) Determination To Impose Countermeasures; Order.--
          ``(1) General rule.--The administering authority shall, 
        within the time specified in paragraph (2), issue a 
        determination and order imposing countermeasures.
          ``(2) Time for determination.--The determination shall be 
        issued within 90 days after the date on which the notice of 
        intent to impose countermeasures under subsection (b) is 
        published in the Federal Register. The administering authority 
        shall publish the determination, and the order described in 
        paragraph (4), in the Federal Register within 7 days after 
        issuing the final determination, and shall provide a copy of 
        the determination and order to the Customs Service.
          ``(3) Content of the determination.--In the determination 
        imposing countermeasures, the administering authority shall 
        determine whether, in light of all of the circumstances, an 
        interested party has demonstrated that the scope or duration of 
        the countermeasures described in subsection (b)(2) should be 
        narrower or shorter than the scope or duration set forth in the 
        notice of intent to impose countermeasures.
          ``(4) Order.--At the same time it issues its determination, 
        the administering authority shall issue an order imposing 
        countermeasures, consistent with its determination.
  ``(d) Administrative Review of Determination To Impose 
Countermeasures.--
          ``(1) Request for review.--Each year, in the anniversary 
        month of the issuance of the order imposing countermeasures 
        under subsection (c), 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 the 
                countermeasures determined under subsection (c)(3), 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 after the end 
                of the anniversary month of the issuance of the order 
                imposing countermeasures, and
                  ``(B) 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 on which the notice of initiation of the 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 the 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) Request for extension beyond 4 years.--If the 
                request seeks an extension that would cause the scope 
                or duration of countermeasures to exceed 4 years, 
                including any prior extensions, the 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 specifies the vessels 
                that fall within the scope of the order by virtue of 
                the establishment of material terms of sale within that 
                period.
                  ``(B) Other requests.--If the request seeks an 
                extension under paragraph (1) other than one described 
                in subparagraph (A), the 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 referred to in subparagraph 
                (A).
          ``(3) Determination.--
                  ``(A) Notice of request for extension.--If a proper 
                request has been received under paragraph (1), the 
                administering authority shall publish notice of 
                initiation of an extension proceeding in the Federal 
                Register not later than 15 days after the applicable 
                deadline in paragraph (2) for requesting the extension.
                  ``(B) Procedures.--
                          ``(i) Requests for extension beyond 4 
                        years.--If paragraph (2)(A) applies to the 
                        request, the administering authority shall 
                        consult with the Trade Representative under 
                        paragraph (4).
                          ``(ii) Other requests.--If paragraph (2)(B) 
                        applies to the request, the administering 
                        authority shall determine, within 90 days after 
                        the date on which the notice of initiation of 
                        the proceeding is 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 4 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 shall inform the party requesting the extension 
        of the countermeasures of the reasons for its decision in 
        writing. The decision shall not be subject to judicial review.
          ``(6) Panel proceedings.--If, based on consultations under 
        paragraph (4), the Trade Representative requests the 
        establishment of a panel under the Shipbuilding Agreement to 
        authorize an extension of the period of countermeasures, and 
        the panel authorizes such an extension, the administering 
        authority shall promptly amend the countermeasure order. 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 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 under the 
        determination.
          ``(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) The name and general description of the vessel.
                  ``(B) The vessel identification number.
                  ``(C) The shipyard where the vessel was constructed.
                  ``(D) The last-known registry of the vessel.
                  ``(E) The name and address of the last-known owner of 
                the vessel.
                  ``(F) The delivery date of the vessel.
                  ``(G) The remaining duration of countermeasures on 
                the vessel.
                  ``(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 under section 802(b),
                  ``(ii) the United States Customs Service,
                  ``(iii) the Secretariat of the Organization for 
                Economic Cooperation and Development,
                  ``(iv) the owners of vessels on the list,
                  ``(v) the shipyards on the list, and
                  ``(vi) the government of the country in which a 
                shipyard on the list 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 clauses (i), (ii), and 
                (iii) of subparagraph (A), and,
                  ``(ii) if the amendment affects their interests, the 
                parties listed in clauses (iv), (v), and (vi) of 
                subparagraph (A).
  ``(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 subsection 
        (f)(1), including any amendments thereto, to determine 
        whether--
                  ``(i) a vessel included in the list does not fall 
                within the scope of the applicable countermeasure order 
                and should be deleted, or
                  ``(ii) a vessel not included in the list falls within 
                the scope of the applicable countermeasure order and 
                should be added.
          ``(B) Any request seeking a determination described in 
        subparagraph (A)(i) shall be made within 90 days after the date 
        of publication of the applicable list.
          ``(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 the 
                        request is received, or
                          ``(ii) if the request seeks a determination 
                        described in paragraph (1)(A)(i), not later 
                        than 15 days after the deadline described 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 in the Federal 
        Register the determination and any such amendment to the list.
  ``(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 injurious pricing order revoked or suspended.--If an 
        injurious pricing order has been revoked or suspended under 
        section 806(d) or (e), the administering authority shall, as 
        appropriate, suspend or terminate proceedings under this 
        section with respect to that order, or suspend or revoke a 
        countermeasure order issued with respect to that injurious 
        pricing order.
          ``(2) If payment date amended.--(A) Subject to subparagraph 
        (C), if the payment date under an injurious pricing order is 
        amended under section 845, the administering authority shall, 
        as appropriate, suspend proceedings or modify deadlines under 
        this section, or suspend or amend a countermeasure order issued 
        with respect to that injurious pricing order.
          ``(B) In taking action under subparagraph (A), the 
        administering authority shall ensure that countermeasures are 
        not applied before the date that is 30 days after publication 
        in the Federal Register of the amended payment date.
          ``(C) If--
                  ``(i) a countermeasure order is issued under 
                subsection (c) before an amendment is made under 
                section 845 to the payment date of the injurious 
                pricing order to which the countermeasure order 
                applies, 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, in lieu of acting under 
        subparagraph (A), reinstitute proceedings under subsection (c) 
        for purposes of issuing a new 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 
        the request of an interested party, shall hold a hearing in 
        accordance with section 841(b) in connection with that 
        proceeding, or
          ``(B) in a proceeding under subsection (e) or (g), upon the 
        request of an interested party, may hold a hearing in 
        accordance with section 841(b) in connection with that 
        proceeding.

``SEC. 808. 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, producing or 
        capable of producing a like vessel 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 under the Shipbuilding Agreement, shall 
determine whether to initiate an investigation described in subsection 
(a).
  ``(c) Determinations.--Upon initiation of an investigation under 
subsection (a), the Trade Representative shall request the following 
determinations be made in accordance with substantive and procedural 
requirements specified by the Trade Representative, notwithstanding any 
other provision 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 
        determinations required by subsection (b), and
          ``(2) by the administering authority and the Commission, in 
        making the determinations 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 806, and
          ``(2) make such determinations and take such other actions as 
        are required by sections 806 and 807, as if affirmative 
        determinations had been made under subsections (a) and (b) of 
        section 805.
  ``(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 805, and
          ``(2) determinations of the administering authority under 
        subsection (e)(2) shall be treated as determinations made under 
        section 806 or 807, as the case may be.
  ``(g) Access to Information.--Section 843 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. 809. THIRD COUNTRY SALES.

  ``(a) Filing of Petition.--Any interested party that would be 
eligible to file a petition under section 802(b)(1) with respect to a 
sale if such sale had been to a United States buyer may, with respect 
to a sale of a vessel by a foreign producer in a Shipbuilding Agreement 
Party to a buyer in a third country that is a Shipbuilding Agreement 
Party, file with the Trade Representative a petition alleging that--
          ``(1) such vessel has been sold at less than fair value; and
          ``(2) the industry in the United States producing or capable 
        of producing a like vessel is materially injured by reason of 
        such sale.
  ``(b) Determination.--Upon receipt of a petition under subsection 
(a), the Trade Representative shall request that the following 
determinations be made in accordance with substantive and procedural 
requirements specified by the Trade Representative, notwithstanding any 
other provision of this title:
          ``(1) The administering authority shall determine whether 
        there is reasonable cause to believe that the subject vessel 
        has been sold at less than fair value.
          ``(2) The Commission shall determine whether there is 
        reasonable cause to believe that the industry in the United 
        States is materially injured by reason of such sale.
  ``(c) Complaint by Trade Representative.--If the administering 
authority makes an affirmative determination under paragraph (1) of 
subsection (b), and the Commission makes an affirmative determination 
under paragraph (2) of subsection (b), the Trade Representative shall 
make application to the country of the buyer of the subject vessel for 
an injurious pricing action and relief similar to that available under 
section 808. The Trade Representative shall advise the petitioner of 
the proceedings undertaken by the third country in response to such 
application and shall permit the petitioner to participate in such 
proceedings to the greatest extent practicable.

                      ``Subtitle B--Special Rules

``SEC. 821. EXPORT PRICE.

  ``(a) Export Price.--For purposes of this title, 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 of the 
subject vessel 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.
  ``(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. 822. NORMAL VALUE.

  ``(a) Determination.--In determining under this title whether a 
subject vessel has been sold at less than fair value, a fair comparison 
shall be made between the export price and normal value of the subject 
vessel. 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 821(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 purposes of 
                subparagraph (A), `a time reasonably corresponding to 
                the time of the sale' means within 3 months before or 
                after the sale of the subject vessel or, in the absence 
                of such sales, such longer period as the administering 
                authority determines would be appropriate.
          ``(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 shall 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) Adjustments for 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--
                  ``(A) involves the performance of different selling 
                activities, and
                  ``(B) 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 
                the 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 861(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 the price is below the 
                cost of production at the time of sale but is above the 
                weighted average cost of production for the period of 
                investigation, such price shall be considered to 
                provide for recovery of costs within 5 years.
          ``(3) Calculation of cost of production.--For purposes of 
        this section, 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 the production and sale of the foreign like vessel 
                by the producer in question.
        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 expenses incidental to placing the vessel in a 
        condition for delivery to the 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 the vessel 
        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 a foreign 
        like vessel 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,
the administering authority 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 subsection, 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.--
          ``(1) In general.--For purposes of this title, the 
        constructed value of a subject vessel shall be an amount equal 
        to the sum of--
                  ``(A) 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, and
                  ``(B)(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 a foreign 
                like vessel, in the ordinary course of trade, in the 
                domestic market of the country of origin of the subject 
                vessel, or
                  ``(ii) if actual data are not available with respect 
                to the amounts described in clause (i), 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 a foreign like 
                        vessel, in the ordinary course of trade, in the 
                        domestic market, or
                          ``(III) if data is not available under 
                        subclause (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 of vessel as the subject 
                        vessel in the domestic market of the country of 
                        origin of the subject vessel.
        The profit shall, for purposes of this paragraph, be based on 
        the average profit realized over a reasonable period of time 
        before and after the sale of the subject vessel and shall 
        reflect a reasonable profit at the time of such sale. For 
        purposes of the preceding sentence, a `reasonable period of 
        time' shall not, except where otherwise appropriate, exceed 6 
        months before, or 6 months after, the sale of the subject 
        vessel. In calculating profit under this paragraph, any 
        distortion which would result in other than a profit which is 
        reasonable at the time of the sale shall be eliminated.
          ``(2) Costs and profits based on other reasonable methods.--
        When costs and profits are determined under paragraph 
        (1)(B)(ii)(III), such determination shall, except where 
        otherwise appropriate, be based on appropriate export sales by 
        the producer of the subject vessel or, absent such sales, to 
        export sales by other producers of a foreign like vessel or the 
        same general category of vessel as the subject vessel in the 
        country of origin of the subject vessel.
          ``(3) Costs of materials.--For purposes of paragraph (1)(A), 
        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 
                subject 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. 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 due to extraordinary circumstances not 
                included.--Costs shall not include actual costs which 
                are due to extraordinary circumstances (including, but 
                not limited to, labor disputes, fire, and natural 
                disasters) 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 a like vessel 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 subject 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. 823. 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, the 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 of the contract of sale or, where appropriate, the date 
on which the material terms of sale are otherwise established. If the 
material terms of sale are significantly changed after such date, 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 due only to fluctuations in the exchange rate 
between the original date of sale and the new date of sale.

                        ``Subtitle C--Procedures

``SEC. 841. HEARINGS.

  ``(a) Upon Request.--The administering authority and the Commission 
shall each hold a hearing in the course of an investigation under this 
title, upon the request of any party to the investigation, before 
making a final determination under section 805.
  ``(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. 842. 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 844,
                  ``(C) significantly impedes a proceeding under this 
                title, or
                  ``(D) provides such information but the information 
                cannot be verified as provided in section 844(g),
        the administering authority and the Commission shall, subject 
        to section 844(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 under this 
title, 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. 843. 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 under this 
        title 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 
                under this title, 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; non-proprietary submissions.--The 
        administering authority and the Commission shall disclose--
                  ``(A) any proprietary information received in the 
                course of a proceeding under this title 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) 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 made 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 under this title 
                (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 the 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 805(b) may not 
                be disclosed by the administering authority under 
                protective order until either an order is published 
                under section 806(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 before any 
                hearing provided under section 841 is held.
                  ``(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 803(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 803(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, except that 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), and such information 
shall be treated as information described in section 552(b)(3) of title 
5, United States Code.
  ``(f) Opportunity for Comment by Vessel Buyers.--The administering 
authority and the Commission shall provide an opportunity for buyers 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 the 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 802 whether to initiate an 
        investigation, or the administering authority or the Commission 
        makes a preliminary determination under section 803, a final 
        determination under section 805, a determination under 
        subsection (b), (c), (d), (e)(3)(B)(ii), (g), or (i) of section 
        807, 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,
                          ``(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, and
                  ``(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 805 or 807(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 the sale of the subject vessel.

``SEC. 844. 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 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 803, 805, or 807, 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 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 section 805 or 807, 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 
805.

``SEC. 845. ADMINISTRATIVE ACTION FOLLOWING SHIPBUILDING AGREEMENT 
                    PANEL REPORTS.

  ``(a) Action by United States International Trade Commission.--
           ``(1) Advisory report.--If a dispute settlement panel under 
        the Shipbuilding Agreement finds in a report that an action by 
        the Commission in connection with a particular proceeding under 
        this title is not in conformity with the obligations of the 
        United States under the Shipbuilding Agreement, the Trade 
        Representative may request the Commission to issue an advisory 
        report on whether this title 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. The Trade Representative 
        shall notify the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate of 
        such request.
          ``(2) Time limits for report.--The Commission shall transmit 
        its report under paragraph (1) to the Trade Representative 
        within 30 calendar days after the Trade Representative requests 
        the report.
          ``(3) Consultations on request for commission 
        determination.--If a majority of the Commissioners issues an 
        affirmative report under paragraph (1), the Trade 
        Representatives shall consult with the congressional committees 
        listed in paragraph (1) concerning the matter.
          ``(4) Commission determination.--Notwithstanding any other 
        provision of this title, if a majority of the Commissioners 
        issues an affirmative report under paragraph (1), the 
        Commission, upon the written request of the Trade 
        Representative, shall 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 Commission shall issue its 
        determination not later than 120 calendar days after the 
        request from the Trade Representative is made.
          ``(5) Consultations on implementation of commission 
        determination.--The Trade Representative shall consult with the 
        congressional committees listed in paragraph (1) before the 
        Commission's determination under paragraph (4) is implemented.
          ``(6) Revocation of order.--If, by virtue of the Commission's 
        determination under paragraph (4), an injurious pricing order 
        is no longer supported by an affirmative Commission 
        determination under this title, the Trade Representative may, 
        after consulting with the congressional committees under 
        paragraph (5), direct the administering authority to revoke the 
        injurious pricing order.
  ``(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 under the 
        Shipbuilding Agreement is issued that contains findings that--
                  ``(A) an action by the administering authority in a 
                proceeding under this title 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 under 
                section 806 should be amended,
                  ``(C) countermeasures provided for in an order issued 
                under section 807 should be provisionally suspended or 
                reduced pending the final decision of the panel, or
                  ``(D) the scope or duration of countermeasures 
                imposed under section 807 should be narrowed or 
                shortened,
        the Trade Representative shall consult with the administering 
        authority and the congressional committees listed in subsection 
        (a)(1) on the matter.
          ``(2) Determination by administering authority.--
        Notwithstanding any other provision of this title, 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, amendment, or 
        suspension under paragraph (2)--
                  ``(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) Consultations before implementation.--Before the 
        administering authority implements any determination, 
        amendment, or suspension under paragraph (2), the Trade 
        Representative shall consult with the administering authority 
        and the congressional committees listed in subsection (a)(1) 
        with respect to such determination, amendment, or suspension.
          ``(5) Implementation of determination.--The Trade 
        Representative may, after consulting with the administering 
        authority and the congressional committees under paragraph (4), 
        direct the administering authority to implement, in whole or in 
        part, the determination, amendment, or suspension made under 
        paragraph (2).
          ``(6) Implementation of determination; notice of 
        implementation.--The administering authority shall implement 
        the determination, amendment, or suspension under paragraph 
        (2)--
                  ``(A) with respect to a matter described in 
                subparagraph (A) of paragraph (1), only if the 
                injurious pricing margin determined 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, amendment, or suspension 
                under paragraph (2).
        The administering authority shall publish notice of such 
        implementation in the Federal Register.
  ``(c) Opportunity for Comment by Interested Parties.--Before issuing 
a determination, amendment, or suspension, the administering authority, 
in a matter described in subsection (b)(1)(A), or the Commission, in a 
matter described in subsection (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.

                       ``Subtitle D--Definitions

``SEC. 861. DEFINITIONS.

  ``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 paragraph 
        (16)(E)(iii), may not include an association of 2 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.--Except as used in section 808, 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 domestic like 
                vessel includes an entity that is producing the 
                domestic like vessel and an entity with the capability 
                to produce the domestic like vessel.
                  ``(C) Capability to produce a domestic like vessel.--
                A producer has the `capability to produce a domestic 
                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) In an investigation under 
                this title, 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.--In an investigation under this 
                title, the effect of the sale of the subject vessel 
                shall be assessed in relation to the United States 
                production (or production capability) of a 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 a domestic like vessel has no 
                separate identity in terms of such criteria, then the 
                effect of the sale 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 a 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.
          ``(6) United states buyer.--The term `United States buyer' 
        means a buyer that is any of the following:
                  ``(A) A United States citizen.
                  ``(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, privately or government owned, or 
                organized with limited or unlimited liability.
                  ``(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 
                        50 percent interest, and
                          ``(ii) the term `control' means the actual 
                        ability to have substantial influence on 
                        corporate behavior, and control is presumed to 
                        exist where there is at least a 25 percent 
                        interest.
                If ownership of a company is established under clause 
                (i), other control is presumed not to exist unless it 
                is otherwise established.
          ``(7) Ownership interest.--An `ownership interest' in a 
        vessel 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--
                  ``(A) the terms and circumstances of the transaction 
                which conveys the interest,
                  ``(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.--Except as otherwise specifically 
                provided under international agreements, 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 (including, but not limited 
                        to, ice breakers and dredgers), and
                          ``(ii) a tug of 365 kilowatts or more,
                that is produced in a Shipbuilding Agreement Party or a 
                country that is not a Shipbuilding Agreement Party and 
                not a WTO member.
                  ``(B) Exclusions.--The term `vessel' does not 
                include--
                          ``(i) any fishing vessel destined for the 
                        fishing fleet of the country in which the 
                        vessel is built,
                          ``(ii) any military vessel,
                          ``(iii) a military reserve vessel, and
                          ``(iv) any vessel sold before the date that 
                        the Shipbuilding Agreement enters into force 
                        with respect to the United States, except that 
                        any vessel sold after December 21, 1994, for 
                        delivery more than 5 years after the date of 
                        the contract of sale shall be a `vessel' for 
                        purposes of this title unless the shipbuilder 
                        demonstrates to the administering authority 
                        that the extended delivery date was for normal 
                        commercial reasons and not to avoid 
                        applicability of this title.
                  ``(C) Self-propelled seagoing vessel.--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) Military vessel.--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) Military reserve vessel.--A `military reserve 
                vessel' is a vessel that has been constructed with 
                national defense features and characteristics required 
                by the Secretary of Defense for the purpose of 
                supporting the United States Armed Forces in a 
                contingency.
          ``(9) Like vessel.--The term `like vessel' means a vessel of 
        the same type, same purpose, and approximate size as the 
        subject vessel and possessing characteristics closely 
        resembling those of the subject vessel.
          ``(10) Domestic like vessel.--The term `domestic like vessel' 
        means a like vessel produced in the United States.
          ``(11) Foreign like vessel.--Except as used in section 
        822(e)(1)(B)(ii)(II), the term `foreign like vessel' means a 
        like vessel produced by the foreign 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 under section 801, 808, or 809.
          ``(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 803(a) and 805(b), the 
                Commission in each case--
                          ``(i) shall consider--
                                  ``(I) the sale of the subject vessel,
                                  ``(II) the effect of the sale of the 
                                subject vessel on prices in the United 
                                States for a domestic like vessel, and
                                  ``(III) the impact of the sale of the 
                                subject vessel on domestic producers of 
                                the domestic like vessel, 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 805(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) Sale of the subject vessel.--In 
                        evaluating the sale of the subject vessel, the 
                        Commission shall consider whether the sale, 
                        either in absolute terms or relative to 
                        production or demand in the United States, in 
                        terms of either volume or value, is or has been 
                        significant.
                          ``(ii) 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 a 
                                domestic like vessel, 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.
                          ``(iii) Impact on affected domestic 
                        industry.--In examining the impact required to 
                        be considered under subparagraph (B)(i)(III), 
                        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, market share, profits, 
                                productivity, return on investments, 
                                and utilization of capacity,
                                  ``(II) factors affecting domestic 
                                prices, including with regard to 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 a 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 the 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 substantially increased 
                                sales of a foreign like vessel to 
                                United States buyers, taking into 
                                account the availability of other 
                                export markets to absorb any additional 
                                exports,
                                  ``(II) whether the sale of a 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 sale of a 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 a foreign 
                                like vessel or could be adapted in a 
                                timely manner to produce a foreign like 
                                vessel, 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 a 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 of 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 of other Shipbuilding 
                                Agreement Parties, or antidumping 
                                determinations of, or measures imposed 
                                by, other countries, against a like 
                                vessel 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 clauses 
                        (i) and (ii) of subparagraph (C), and subject 
                        to clause (ii) of this subparagraph, the 
                        Commission shall cumulatively assess the 
                        effects of sales of foreign like vessels from 
                        all foreign producers with respect to which--
                                  ``(I) petitions were filed under 
                                section 802(b) on the same day,
                                  ``(II) investigations were initiated 
                                under section 802(a) on the same day, 
                                or
                                  ``(III) petitions were filed under 
                                section 802(b) and investigations were 
                                initiated under section 802(a) on the 
                                same day,
                        if, with respect to such vessels, the foreign 
                        producers compete with each other and with 
                        producers of a domestic like vessel 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 from all countries with respect to which--
                          ``(i) petitions were filed under section 
                        802(b) on the same day,
                          ``(ii) investigations were initiated under 
                        section 802(a) on the same day, or
                          ``(iii) petitions were filed under section 
                        802(b) and investigations were initiated under 
                        section 802(a) on the same day,
                if, with respect to such vessels, the foreign producers 
                compete with each other and with producers of a 
                domestic like vessel in the United States market.
          ``(17) Interested party.--The term `interested party' means, 
        in a proceeding under this title--
                  ``(A)(i) the foreign producer, seller (other than the 
                foreign producer), and the United States buyer of the 
                subject vessel, or
                  ``(ii) a trade or business association a majority of 
                the members of which are the foreign producer, seller, 
                or United States buyer of the subject vessel,
                  ``(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,
                  ``(D) a certified union or recognized union or group 
                of workers which is representative of an industry,
                  ``(E) a trade or business association a majority of 
                whose members are producers in an industry,
                  ``(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 807, a purchaser who, 
                after the effective date of an order issued under that 
                section, entered into a contract of sale with the 
                foreign producer that is subject to the order.
          ``(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 the 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 
        reasonable time before the sale of the subject vessel, have 
        been normal in the shipbuilding industry with respect to a like 
        vessel. 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 822(b)(1).
                  ``(B) Transactions disregarded under section 
                822(f)(2).
          ``(20) 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 in such country 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) Determinations 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 subtitle A.
          ``(21) Shipbuilding agreement.--The term `Shipbuilding 
        Agreement' means The Agreement Respecting Normal Competitive 
        Conditions in the Commercial Shipbuilding and Repair Industry, 
        resulting from negotiations under the auspices of the 
        Organization for Economic Cooperation and Development, and 
        entered into on December 21, 1994.
          ``(22) 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.
          ``(23) WTO agreement.--The term `WTO Agreement' means the 
        Agreement defined in section 2(9) of the Uruguay Round 
        Agreements Act.
          ``(24) 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.
          ``(25) Trade representative.--The term `Trade Representative' 
        means the United States Trade Representative.
          ``(26) 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.
          ``(27) Injurious pricing.--The term `injurious pricing' 
        refers to the sale of a vessel at less than fair value.
          ``(28) Injurious pricing margin.--
                  ``(A) In general.--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 803(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 805(b), the injurious pricing margin or 
                        margins most recently published by the 
                        administering authority before the closing of 
                        the Commission's administrative record.
          ``(29) Commercial interest reference rate.--The term 
        `Commercial Interest Reference Rate' or `CIRR' means an 
        interest rate that the administering authority determines to be 
        consistent with Annex III, and appendices and notes thereto, of 
        the Understanding on Export Credits for Ships, resulting from 
        negotiations under the auspices of the Organization for 
        Economic Cooperation, and entered into on December 21, 1994.
          ``(30) Antidumping.--
                  ``(A) WTO members.--In the case of a WTO member, the 
                term `antidumping' refers to action taken pursuant to 
                the Agreement on Implementation of Article VI of the 
                General Agreement on Tariffs and Trade 1994.
                  ``(B) Other cases.--In the case of any country that 
                is not a WTO member, the term `antidumping' refers to 
                action taken by the country against the sale of a 
                vessel at less than fair value that is comparable to 
                action described in subparagraph (A).
          ``(31) Broad multiple bid.--The term `broad multiple bid' 
        means a bid in which the proposed buyer extends an invitation 
        to at least all the producers in the industry known by the 
        buyer to be capable of building the subject vessel.''.

SEC. 102. ENFORCEMENT OF COUNTERMEASURES.

  Part II of title IV of the Tariff Act of 1930 is amended by adding at 
the end 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 807, 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 a vessel included in the list described in 
        subsection (a), 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 Nationality Act.
          ``(2) To lade or unlade any crewmember of such 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 such 
        vessel.
          ``(5) To lade or unlade such other merchandise, baggage, or 
        passenger 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) Petition for correction.--If the master of any vessel 
        whose application for a permit to lade or unlade has been 
        denied under 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) Inapplicability of sections 514 and 520.--
        Notwithstanding paragraph (1), imposition of countermeasures 
        under this section shall not be deemed an exclusion or other 
        protestable decision under section 514, and shall not be 
        subject to correction under section 520.
          ``(3) Petitions seeking administrative review.--Any petition 
        seeking administrative review of any matter regarding the 
        Secretary of Commerce's decision to list a vessel under section 
        807 must be brought under that section.
  ``(d) Penalties.--In addition to any other provision of law, the 
Customs Service may impose a civil penalty of 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 under this section.''.

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

  (a) Judicial Review.--Part III of title IV of the Tariff Act of 1930 
is amended by inserting after section 516A the following:

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

  ``(a) Review of Determination.--
          ``(1) In general.--Within 30 days after the date of 
        publication in the Federal Register of--
                  ``(A)(i) a determination by the administering 
                authority under section 802(c) not to initiate an 
                investigation,
                  ``(ii) a negative determination by the Commission 
                under section 803(a) 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 806(d) or (e),
                  ``(iv) a determination by the administering authority 
                under section 807(c),
                  ``(v) a determination by the administering authority 
                in a review under section 807(d),
                  ``(vi) a determination by the administering authority 
                concerning whether to extend the scope or duration of a 
                countermeasure order under section 807(e)(3)(B)(ii),
                  ``(vii) a determination by the administering 
                authority to amend a countermeasure order under section 
                807(e)(6),
                  ``(viii) a determination by the administering 
                authority in a review under section 807(g),
                  ``(ix) a determination by the administering authority 
                under section 807(i) to terminate proceedings, or to 
                amend or revoke a countermeasure order,
                  ``(x) a determination by the administering authority 
                under section 845(b), 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 subparagraph (A) of 
                paragraph (2),
                  ``(ii) notice of a determination described in 
                subparagraph (B) of paragraph (2),
                  ``(iii) notice of implementation of a determination 
                described in subparagraph (C) of paragraph (2), or
                  ``(iv) notice of revocation of an injurious pricing 
                order based on a determination described in 
                subparagraph (D) of paragraph (2),
        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.
          ``(2) Reviewable determinations.--The determinations referred 
        to in paragraph (1)(B) are--
                  ``(A) a final affirmative determination by the 
                administering authority or by the Commission under 
                section 805, including any negative part of such a 
                determination (other than a part referred to in 
                subparagraph (B)),
                  ``(B) a final negative determination by the 
                administering authority or the Commission under section 
                805,
                  ``(C) a determination by the administering authority 
                under section 845(b), with respect to a matter 
                described in paragraph (1)(A) of that section, and
                  ``(D) a determination by the Commission under section 
                845(a) that results in the revocation of an injurious 
                pricing order.
          ``(3) Exception.--Notwithstanding the 30-day limitation 
        imposed by paragraph (1) with regard to an order described in 
        paragraph (1)(B)(i), a final affirmative determination by the 
        administering authority under section 805 may be contested by 
        commencing an action, in accordance with the provisions of 
        paragraph (1), within 30 days after the date of publication in 
        the Federal Register of a final negative determination by the 
        Commission under section 805.
          ``(4) Procedures and fees.--The procedures and fees set forth 
        in chapter 169 of title 28, United States Code, 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 subparagraph (A) of 
                subsection (a)(1), to be arbitrary, capricious, an 
                abuse of discretion, or otherwise not in accordance 
                with law, or
                  ``(B) in an action brought under subparagraph (B) of 
                subsection (a)(1), to be unsupported by substantial 
                evidence on the record, or otherwise not in accordance 
                with law.
          ``(2) Record for review.--
                  ``(A) In general.--For 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 843(a)(2); 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 shall have the right to appear and be heard 
as a party in interest before the United States Court of International 
Trade in an action under this section. 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.--For purposes of this section:
          ``(1) Administering authority.--The term `administering 
        authority' has the meaning given that term in section 861(1).
          ``(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 861(17).''.
  (b) Conforming Amendments.--
          (1) Jurisdiction of the court.--Section 1581(c) of title 28, 
        United States Code, is amended by inserting ``or 516B'' after 
        ``section 516A''.
          (2) Relief.--Section 2643 of title 28, United States Code, is 
        amended--
                  (A) in subsection (c)(1) by striking ``and (5)'' and 
                inserting ``(5), and (6)''; and
                  (B) in subsection (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 that Act, upon a proper 
showing that such relief is warranted.''.

                       TITLE II--OTHER PROVISIONS

SEC. 201. EQUIPMENT AND REPAIR OF VESSELS.

  Section 466 of the Tariff Act of 1930 (19 U.S.C. 1466), is amended by 
adding at the end the following new subsection:
  ``(i) The duty imposed by subsection (a) shall not apply with respect 
to activities occurring in a Shipbuilding Agreement Party, as defined 
in section 861(22), with respect to--
          ``(1) self-propelled seagoing vessels of 100 gross tons or 
        more that are used for transportation of goods or persons or 
        for performance of a specialized service (including, but not 
        limited to, ice breakers and dredges), and
          ``(2) tugs of 365 kilowatts or more.
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. 202. EFFECT OF AGREEMENT WITH RESPECT TO PRIVATE REMEDIES.

  No person other than the United States--
          (1) shall have any cause of action or defense under the 
        Shipbuilding Agreement or by virtue of congressional approval 
        of the agreement, or
          (2) 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, the District of 
        Columbia, any State, any political subdivision of a State, or 
        any territory or possession of the United States on the ground 
        that such action or inaction is inconsistent with such 
        agreement.

SEC. 203. IMPLEMENTING REGULATIONS.

  After the date of the enactment of this Act, the heads of agencies 
with functions under this Act and the amendments made by this Act 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. 204. AMENDMENTS TO THE MERCHANT MARINE ACT, 1936.

  The Merchant Marine Act, 1936, is amended as follows:
          (1) Section 511(a)(2) (46 App. U.S.C. 1161(a)(2)) is amended 
        by inserting after ``1939,'' the following: ``or, if the vessel 
        is a Shipbuilding Agreement vessel, constructed in a 
        Shipbuilding Agreement Party, but only with regard to moneys 
        deposited, on or after the date on which the Shipbuilding Trade 
        Agreement Act takes effect, into a construction reserve fund 
        established under subsection (b)''.
          (2) Section 601(a) (46 App. U.S.C. 1171(a)) is amended by 
        striking ``, 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 ``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''.
          (3) 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 or in the United 
        States'' before ``, except in an emergency.''.
          (4) Section 607 (46 App. U.S.C. 1177) is amended as follows:
                  (A) Subsection (a) is amended by inserting ``or, if 
                the vessel is a Shipbuilding Agreement vessel, in a 
                Shipbuilding Agreement Party,'' after ``built in the 
                United States''.
                  (B) Subsection (k) is amended as follows:
                          (i) Paragraph (1) is amended by striking 
                        subparagraph (A) and inserting the following:
          ``(A)(i) constructed in the United States and, if 
        reconstructed, reconstructed in the United States or in a 
        Shipbuilding Agreement Party, or
          ``(ii) that is a Shipbuilding Agreement vessel and is 
        constructed in a Shipbuilding Agreement Party and, if 
        reconstructed, is reconstructed in a Shipbuilding Agreement 
        Party or in the United States,''.
                          (ii) Paragraph (2)(A) is amended to read as 
                        follows:
          ``(A)(i) constructed in the United States and, if 
        reconstructed, reconstructed in the United States or in a 
        Shipbuilding Agreement Party, or
          ``(ii) that is a Shipbuilding Agreement vessel and is 
        constructed in a Shipbuilding Agreement Party and, if 
        reconstructed, is reconstructed in a Shipbuilding Agreement 
        Party or in the United States, but only with regard to moneys 
        deposited into the fund on or after the date on which the 
        Shipbuilding Trade Agreement Act takes effect,''.
          (5) Section 610 (46 App. U.S.C. 1180) is amended by striking 
        ``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 ``shall be built in the United States or, 
        if the vessel is a Shipbuilding Agreement vessel, in a 
        Shipbuilding Agreement Party,''.
          (6) Section 901(b)(1) (46 App. U.S.C. 1241(b)(1)) is amended 
        by striking the third sentence and inserting the following:
``For purposes of this section, the term `privately owned United 
States-flag commercial vessels' shall be deemed to include--
          ``(A) any privately owned United States-flag commercial 
        vessel constructed in the United States, and if rebuilt, 
        rebuilt in the United States or in a Shipbuilding Agreement 
        Party on or after the date on which the Shipbuilding Trade 
        Agreement Act takes effect, and
          ``(B) any privately owned vessel constructed in a 
        Shipbuilding Agreement Party on or after the date on which the 
        Shipbuilding Trade Agreement Act takes effect, and if rebuilt, 
        rebuilt in a Shipbuilding Agreement Party or in the United 
        States, that is documented pursuant to chapter 121 of title 46, 
        United States Code.
The term `privately owned United States-flag commercial vessels' shall 
also be deemed to include any cargo vessel that so qualified pursuant 
to section 615 of this Act or this paragraph before the date on which 
the Shipbuilding Trade Agreement Act takes effect. 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.''.
          (7) Section 905 (46 App. U.S.C. 1244) is amended by adding at 
        the end the following:
  ``(h) The term `Shipbuilding Agreement' means the Agreement 
Respecting Normal Competitive Conditions in the Commercial Shipbuilding 
and Repair Industry, which resulted from negotiations under the 
auspices of the Organization for Economic Cooperation and Development, 
and was entered into on December 21, 1994.
  ``(i) 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.
  ``(j) The term `Shipbuilding Agreement vessel' means a vessel to 
which the Secretary determines Article 2.1 of the Shipbuilding 
Agreement applies.
  ``(k) The term `Export Credit Understanding' means the Understanding 
on Export Credits for Ships which resulted from negotiations under the 
auspices of the Organization for Economic Cooperation and Development 
and was entered into on December 21, 1994.
  ``(l) The term `Export Credit Understanding vessel' means a vessel to 
which the Secretary determines the Export Credit Understanding 
applies.''.
          (8) Section 1104A (46 App. U.S.C. 1274) is amended as 
        follows:
                  (A) Paragraph (5) of subsection (b) 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 percent per annum on 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, except that, with 
        respect to Export Credit Understanding vessels, and 
        Shipbuilding Agreement vessels, the obligations shall bear 
        interest at a rate the Secretary determines to be consistent 
        with obligations of the United States under the Export Credit 
        Understanding or the Shipbuilding Agreement, as the case may 
        be;''.
                  (B) Subsection (i) is amended to read as follows:
  ``(i)(1) Except as provided in paragraph (2), the Secretary may not, 
with respect to--
          ``(A) the general 75 percent or less limitation contained in 
        subsection (b)(2),
          ``(B) the 87\1/2\ percent or less limitation contained in the 
        1st, 2nd, 4th, or 5th proviso to subsection (b)(2) or in 
        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 and 
Shipbuilding Agreement vessels, the Secretary may establish by rule, 
regulation, or procedure a uniform percentage that the Secretary 
determines to be consistent with obligations of the United States under 
the Export Credit Understanding or the Shipbuilding Agreement, as the 
case may be.''.
                  (C) Section 1104B(b) (46 App. U.S.C. 1274a(b)) is 
                amended by striking the period at the end and inserting 
                the following:
``, except that, with respect to Export Credit Understanding vessels 
and Shipbuilding Agreement vessels, the Secretary may establish by 
rule, regulation, or procedure a uniform percentage that the Secretary 
determines to be consistent with obligations of the United States under 
the Export Credit Understanding or the Shipbuilding Agreement, as the 
case may be.''.

SEC. 205. APPLICABILITY OF TITLE XI AMENDMENTS.

  (a) Effective Date.--
          (1) In general.--Notwithstanding any provision of the 
        Shipbuilding Agreement or the Export Credit Understanding, the 
        amendments made by paragraph (8) of section 204 shall not apply 
        with respect to any commitment to guarantee made under title XI 
        of the Merchant Marine Act, 1936, before January 1, 1999, with 
        respect to a vessel delivered--
                  (A) before January 1, 2002, or
                  (B) in the case of unusual circumstances to which 
                paragraph (2) applies, as soon after January 1, 2002, 
                as is practicable.
          (2) Unusual circumstances.--This paragraph applies in a case 
        in which unusual circumstances beyond the control of the 
        parties concerned prevent the delivery of a vessel by January 
        1, 2002. As used in this paragraph, the term ``unusual 
        circumstances'' means acts of God (other than ordinary storms 
        or inclement weather conditions), labor strikes, acts of 
        sabotage, explosions, fires, or vandalism, and similar 
        circumstances.

SEC. 206. WITHDRAWAL FROM THE AGREEMENT.

  (a) Withdrawal.--
          (1) Notice.--The President shall give notice, under Article 
        14 of the Shipbuilding Agreement, of intent of the United 
        States to withdraw from the Shipbuilding Agreement, as soon as 
        is practicable after one or more Shipbuilding Agreement Parties 
        give notice, under such article, of intent to withdraw from the 
        Shipbuilding Agreement, if paragraph (2) applies.
          (2) Tonnage of new construction in withdrawing parties.--This 
        paragraph applies if the combined gross tonnage of new 
        Shipbuilding Agreement vessels constructed in all Shipbuilding 
        Agreement Parties who have given notice to withdraw from the 
        Shipbuilding Agreement, which were delivered in the calendar 
        year preceding the calendar year in which the notice is given, 
        is 15 percent or more of the gross tonnage of new Shipbuilding 
        Agreement vessels that were constructed in all Shipbuilding 
        Agreement Parties and were delivered in the calendar year 
        preceding the calendar year in which the notice is given.
          (3) Termination of withdrawal.--If a Shipbuilding Agreement 
        Party described in paragraph (2) takes action to terminate its 
        withdrawal from the Shipbuilding Agreement, so that paragraph 
        (2) would not apply if that Party had not given the notice to 
        withdraw, the President may take the necessary steps to 
        terminate the notice of withdrawal of the United States from 
        the Shipbuilding Agreement.
  (b) Reinstatement of Laws.--If the United States withdraws from the 
Shipbuilding Agreement, on the date on which such withdrawal becomes 
effective, the amendments made by section 204 shall be deemed not to 
have been made, and the provisions of law amended by section 204 shall, 
on and after such date, be effective as if this Act had not been 
enacted.

SEC. 207. OTHER LAWS NOT AFFECTED.

  The Shipbuilding Agreement shall not affect, directly or indirectly, 
the Merchant Marine Act, 1920, the Act of June 19, 1886 (46 U.S.C. App. 
289), or any other provision of law set forth in Accompanying Note 2 to 
Annex II to the Shipbuilding Agreement, and shall not provide any 
mechanism to subject any producer of vessels in the United States to 
financial penalties, duties, bid restrictions, unfavorable bid 
preferences, or withdrawal of concessions under the GATT 1994 or other 
Uruguay Round Agreements, in the competition for international 
commercial vessel construction or reconstruction orders because of 
construction of vessels by United States shipbuilders for operation in 
the coastwise trade of the United States.

SEC. 208. PROTECTION OF UNITED STATES INTERESTS.

  Nothing in the Shipbuilding Agreement shall be construed to prevent 
the United States from taking any action which it considers necessary 
for the protection of essential security interests or from invoking its 
sovereign autority to define, for purposes of exclusion from coverage 
under the Shipbuilding Agreement and from any dispute or challenge 
based on Annex I to the Shipbuilding Agreement, ``military vessel'', 
``military reserve vessel'', or ``essential security interest'' on a 
case by case basis, as determined by the Secretary of Defense.

SEC. 209. DEFINITIONS.

  As used in this title--
          (1) the terms ``Shipbuilding Agreement'', ``Shipbuilding 
        Agreement Party'', ``Shipbuilding Agreement Vessels'', and 
        ``Export Credit Understanding'' have the meanings given those 
        terms in subsections (h), (i), (j), and (k), respectively, of 
        section 905 of the Merchant Marine Act, 1936, as added by 
        section 204(7) of this Act; and
          (2) the terms ``GATT 1994'' and ``Uruguay Round Agreements'' 
        have the meanings given those terms in section 2 of the Uruguay 
        Round Agreements Act.

                       TITLE III--REVENUE OFFSET

SEC. 301. PENALTIES FOR FAILURE TO DISCLOSE POSITION THAT CERTAIN 
                    INTERNATIONAL SHIPPING INCOME IS NOT INCLUDIBLE IN 
                    GROSS INCOME.

  (a) In General.--Section 883 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subsection:
  ``(d) Penalties for Failure to Disclose Position That Certain 
International Shipping Income Is Not Includible in Gross Income.--
          ``(1) In general.--A taxpayer who, with respect to any tax 
        imposed by this title, takes the position that any of its gross 
        income derived from the international operation of a ship or 
        ships is not includible in gross income by reason of subsection 
        (a)(1) or section 872(b)(1) shall be entitled to such treatment 
        only if such position is disclosed (in such manner as the 
        Secretary may prescribe) on the return of tax for such tax (or 
        any statement attached to such return).
          ``(2) Additional penalties for failing to disclose 
        position.--If a taxpayer fails to meet the requirement of 
        paragraph (1) with respect to any taxable year--
                  ``(A) the amount of the income from the international 
                operation of a ship or ships--
                          ``(i) which is from sources without the 
                        United States, and
                          ``(ii) which is attributable to a fixed place 
                        of business in the United States,
                shall be treated for purposes of this title as 
                effectively connected with the conduct of a trade or 
                business within the United States, and
                  ``(B) no deductions or credits shall be allowed which 
                are attributable to income from the international 
                operation of a ship or ships.
          ``(3) Reasonable cause exception.--This subsection shall not 
        apply to a failure to disclose a position if it is shown that 
        such failure is due to reasonable cause and not due to willful 
        neglect.''
  (b) Conforming Amendments.--
          (1) Paragraph (1) of section 872(b) of such Code is amended 
        by striking ``Gross income'' and inserting ``Except as provided 
        in section 883(d), gross income''.
          (2) Paragraph (1) of section 883(a) of such Code is amended 
        by striking ``Gross income'' and inserting ``Except as provided 
        in subsection (d), gross income''.
  (c) Effective Date.--
          (1) In general.--Notwithstanding section 3, the amendments 
        made by this section shall apply to taxable years beginning 
        after the later of--
                  (A) December 31, 1996, or
                  (B) the date that the Shipbuilding Agreement enters 
                into force with respect to the United States.
          (2) Coordination with treaties.--The amendments made by this 
        section shall not apply in any case where their application 
        would be contrary to any treaty obligation of the United 
        States.
  (d) Information To Be Provided by Customs Service.--The United States 
Custom Service shall provide the Secretary of the Treasury or his 
delegate with such information as may be specified by such Secretary in 
order to enable such Secretary to determine whether ships which are not 
registered in the United States are engaged in transportation to or 
from the United States.

                          PURPOSE AND SUMMARY

    H.R. 2754, the Shipbuilding Trade Agreement Act, would 
implement the Organization for Economic Cooperation and 
Development (OECD) Agreement on Shipbuilding. As amended by the 
Committee on National Security, the bill would implement the 
OECD agreement under U.S. law.
    The OECD Agreement is intended to eliminate virtually all 
shipbuilding subsidies granted by signatory countries either 
directly to shipbuilders or indirectly through ship operators 
or other entities. The Agreement also contains an injurious 
pricing code to prevent below cost ``dumping'' in the 
shipbuilding industry, a comprehensive approach to government 
financing of ships for export and domestic sales, and a dispute 
resolution mechanism. H.R. 2754, as amended by the Committee on 
National Security, would expand the remedies available to U.S. 
shipbuilders under the OECD Agreement, would add a definition 
of ``military reserve vessels'' to ensure that vessels 
prepositioned for military contingencies are excluded from 
coverage under the agreement, would provide for a gradual phase 
out of the current shipbuilding loan guarantee program, would 
provide the president with authority to withdraw from the OECD 
Agreement if other major shipbuilding parties withdraw, would 
guarantee that the OECD agreement would not adversely affect 
the Jones Act or other U.S. cabotage laws, and would clarify 
that nothing in the implementing legislation or the Agreement 
would prevent the United States from taking any action which it 
considers necessary for the protection of its essential 
security interests.

                  BACKGROUND AND NEED FOR LEGISLATION

    In December 1994, after five years of negotiations, the 
Organization for Economic Cooperation and Development Agreement 
on Shipbuilding was signed by the United States, the European 
Commission (on behalf of the twelve European member countries), 
Norway, South Korea and Japan. Negotiations leading to this 
agreement were initiated by the United States following 
complaints by United States shipbuilding companies that foreign 
shipbuilders had been engaging in unfair competitive practices.
    The OECD agreement was scheduled to enter into force 
January 1, 1996. However, because the agreement had not been 
ratified by the United States and Japan by that date, the 
signatory countries agreed to extend the ratification deadline 
until June 15, 1996. Under this extension, the agreement would 
enter into force on July 15, 1996. H.R. 2754 is the legislation 
by which Congress would ratify the OECD agreement.

                          LEGISLATIVE HISTORY

    H.R. 2754, the Shipbuilding Trade Agreement Act, was 
introduced on December 11, 1995. The bill was referred to the 
Committee on Ways and Means and to the Committee on National 
Security. On March 18, 1996, the Committee on Ways and Means 
agreed to an amendment in the nature of a substitute to H.R. 
2754 and ordered the bill, as amended, favorably reported by a 
vote of 27 to 4.
    On May 22, 1996, the Special Oversight Panel on the 
Merchant Marine of the Committee on National Security held a 
hearing to consider H.R. 2754. At this hearing, testimony was 
received from Representatives Philip M. Crane and Sam Gibbons, 
from the office of the United States Trade Representative, from 
large and small American shipyards, from a shipyard labor 
union, and from a representative of a U.S. flag ship operator.
    On May 29, 1996, the Committee on National Security met to 
consider H.R. 2754. The committee agreed to an amendment in the 
nature of a substitute to the bill and ordered the bill 
favorably reported to the House.

                      SECTION-BY-SECTION ANALYSIS

    H.R. 2754 is organized unlike most bills reported by the 
Committee on National Security. As introduced in the House, the 
bill contains three introductory sections. Section 1 would 
provide the short title of the bill. Section 2 would specify 
congressional approval of the OECD agreement. Section 3 
specifies that H.R. 2754 would take effect when the OECD 
agreement enters into force. The amendment in the nature of a 
substitute agreed to by the Committee on National Security 
would not amend sections 1 and 2. However, a delayed phase out 
of the current shipbuilding loan guarantee program would be an 
exception to the effective date provision of section 3 of the 
bill.
    In addition to the three introductory sections, H.R. 2754 
also contains two separate titles. In general, title I would 
amend the Tariff Act of 1930 by adding a new title VIII to that 
Act concerning injurious, anti-competitive pricing practices 
and countermeasures. Title II of H.R. 2754 addresses 
miscellaneous other provisions. The changes that would be made 
to titles I and II of the bill by the Committee on National 
Security's amendment in the nature of a substitute are 
discussed below.
    For the sake of brevity, no effort has been made in this 
report to provide a detailed explanation of every section of 
the introduced bill. Only those sections of the introduced bill 
that fall within the legislative jurisdiction of the Committee 
on National Security or that would be changed by the 
committee's amendment are discussed. In addition, the amendment 
of the Committee on Ways and Means to H.R. 2754 added a new 
title III to the bill, dealing with revenue offsets. The 
amendment in the nature of a substitute agreed to by the 
Committee on National Security did not address title III.

             Title I--Injurious pricing and countermeasures

    The first change to H.R. 2754 that would be made by the 
Committee on National Security's amendment in the nature of a 
substitute concerns section 802 of the Tariff Act of 1930, as 
added by title I of the bill. Section 802 relates to procedures 
for initiating an injurious pricing investigation under the 
Tariff Act of 1930. Subsection ``(I)'' would grant U.S. 
shipbuilders standing to file a petition to initiate an 
injurious pricing proceeding based upon evidence that a U.S. 
shipbuilder was invited to tender a bid to build a ship. The 
committee does not believe that an invitation to submit a bid 
should be a precondition for having standing to initiate an 
injurious pricing investigation. The committee amendment would 
amend Subsection ``(I)'' to delete the bill's current standing 
requirement.
    The Committee on National Security also recommends a new 
Section 809 of the Tariff Act of 1930. This new section would 
provide a remedy for a U.S. shipbuilder who loses out on a sale 
where the vessel is not sold to a U.S. party. As currently 
drafted, the antidumping provisions only apply to vessels sold 
to U.S. parties. Under section 808, only a government (and not 
private shipbuilding companies) may complain to another 
government concerning cases in which a vessel built in another 
country is sold below cost to a third party. For example, the 
provision in the introduced bill would cover a situation in 
which a Korean shipyard sells a vessel to a U.S. purchaser, and 
an Italian shipyard complains that the Korean shipyard has 
undercut the pricing rules. Conversely, however, in a case in 
which an Italian shipbuilder sells to a Japanese (or any other 
non-U.S.) purchaser, there is no mechanism for a U.S. 
shipbuilder to complain officially to Japanese authorities. 
Under the OECD agreement, only the United States government, as 
a shipbuilding agreement party, may lodge such a complaint. New 
section 809 would permit a U.S. shipbuilder to petition the 
United States Trade Representative in circumstances in which a 
vessel is sold below cost in another country, in addition to 
those cases in which a vessel is sold to a U.S. person. This 
section would further require the United States Trade 
Representative, upon receipt of such a petition from a U.S. 
shipbuilder, to request the administering authority to 
determine whether there was reasonable cause to believe that 
the subject vessel had been sold at less than fair value and 
whether the United States shipbuilding industry had been 
materially injured by the sale.
    The committee amendment in the nature of a substitute also 
would add a definition for the term ``military reserve vessel'' 
to section 861(8) of H.R. 2754. This would clarify that vessels 
procured and owned by private parties for sealift, such as 
those used by the Marine Corps as prepositioned wartime 
vessels, are excluded from the application of this Act or the 
OECD Agreement. The committee amendment further would clarify 
that vessels outfitted with national defense features in 
accordance with requirements imposed by the Secretary of 
Defense are likewise excluded from coverage under this Act or 
the OECD Agreement. The committee is also concerned that the 
existing term ``military vessel'' is drafted too narrowly to 
exclude from coverage vessels owned and operated by the United 
States Coast Guard. The committee does not believe that this is 
the intent.

                       Title II--Other provisions

    Section 204 of H.R. 2754, as introduced, would amend the 
Merchant Marine Act, 1936 to remove a number of U.S. build or 
U.S. preference requirements contained in current law. 
Specifically, section 204(1) would allow post-enactment tax 
sheltered deposits to the Capital Reserve Fund to be used for 
the acquisition of vessels constructed in OECD Agreement 
signatory countries. Current law restricts the use of those 
deposits to the acquisition of commercial vessels built in U.S. 
shipyards. The requirement that the vessels be documented in 
the United States would be retained. Section 204(4) would 
provide similar treatment for post-enactment deposits to the 
Capital Construction Fund.
    Sections 204(2), 204(3), and 204(5) would eliminate the 
general requirement that vessels enrolled in the operating 
differential subsidy (ODS) program be built and repaired in a 
United States shipyard. Elimination of this U.S. build and 
repair requirement should in no way be considered as 
authorization for the Department of Transportation to continue 
the ODS program beyond its current expiration date. A new, more 
cost effective Maritime Security Program to replace the 
expiring ODS program has passed the House and is currently 
pending in the Senate.
    Section 204(6) would eliminate the requirement that a 
vessel not constructed in the United States be documented under 
the United States flag for three years before it is eligible to 
carry certain types of commodities under the cargo preference 
laws.
    Section 204(7) would prevent the Secretary of 
Transportation from issuing loan guarantee commitments that are 
inconsistent with the Export Credit Understanding or the OECD 
Agreement. The effect of this provision would be to generally 
prevent the Secretary of Transportation from issuing loan 
guarantee commitments under the so-called ``Title XI'' loan 
guarantee program where the equity requirements are less than 
20 percent of the cost of the vessel, and the maximum repayment 
term is greater than 12 years. This provision would apply to 
vessels covered under the terms of the OECD Agreement or the 
Export Credit Understanding, including vessels built for the 
coastwise trades, intercoastal trades or vessels engaged in 
foreign commerce.
    A new section 205 would be added by the committee amendment 
in the nature of a substitute to H.R. 2754. The purpose of 
section 205 would be to delay the effective date of the 
amendments contained in section 204(7). Section 205 would allow 
the Secretary of Transportation to continue to issue loan 
guarantee commitments in appropriate cases, consistent with 
existing law, until January 1, 1999. Vessels to which 
commitments would be issued on or before January 1, 1999 would 
be required to be delivered on or before January 1, 2002. The 
delay in the implementation date for the changes to the Title 
XI program is critical to the ability of those U.S. shipyards 
which were formerly building exclusively naval vessels for the 
last 20 years to transition to building a combination of naval 
and commercial vessels. If the provisions of the existing title 
XI loan guarantee program were to be terminated abruptly (as is 
contemplated by the introduced version of H.R. 2754), some U.S. 
shipyards that have been dependent on defense business could 
lose their ability to remain viable commercial concerns. The 
committee believes that maintenance of the defense industrial 
base and the skills possessed by employees of these large 
shipyards is sufficiently critical to our national security 
that the current loan guarantee program should be phased out 
only gradually, thereby minimizing the prospects of financial 
loss for shipyards converting to more commercial ship 
construction work. In light of numerous exceptions and 
exemptions granted to foreign shipyards under the OECD 
Agreement, the committee believes the modest extension of the 
current program that would be made by section 205 is reasonable 
and appropriate.
    Section 206 would authorize the president to give notice of 
intention to withdraw from the OECD Agreement under Article 14 
of that agreement if another signatory country gives notice of 
intention to withdraw. This provision would only apply if an 
OECD Agreement party or parties has delivered 15 percent or 
more of the gross tonnage of vessels constructed and delivered 
in the previous year. If the United States withdraws from the 
Agreement, this section would reinstate the provisions of 
Section 204 as if they had never been repealed.
    Section 207 would clarify provisions in the OECD Agreement, 
consistent with representations made by the United States Trade 
Representative, that nothing in the OECD Agreement affects the 
Jones Act or other U.S. cabotage laws.
    Section 208 would clarify that nothing in the OECD 
Agreement should be construed as preventing the United States 
from taking action which it considers necessary for the 
protection of its essential security interests. This section 
would allow the United States to invoke its sovereign authority 
to define, for the purposes of exclusion from the OECD 
Agreement, the terms ``military vessel'', ``military reserve 
vessel'', or ``essential security interests'' on a case by case 
basis, as determined by the Secretary of Defense. The committee 
believes that the only way to safeguard our military programs 
is to establish in advance our sovereign prerogative to invoke 
what amounts to a national security exemption against trade-
related actions which might have some detrimental effect upon 
sealift or other military vessel programs.
    Section 209 would define various terms associated with the 
OECD Agreement.

                           DEPARTMENTAL DATA

    The Committee on National Security received correspondence 
from the Department of Defense and from the United States Trade 
Representative concerning H.R. 2754:

                             Department of Defense,
                                 Office of General Counsel,
                                      Washington, DC, May 29, 1996.
Hon. Floyd D. Spence,
Chairman, Committee on National Security,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: This is in response to your request for 
the views of the Department of Defense on H.R. 2754, 104th 
Congress, a bill ``To approve and implement the OECD 
Shipbuilding Trade Agreement.'' This bill was reported out by 
the House Ways and Means Committee on March 21 and was referred 
to the National Security Committee for review of its merchant 
marine provisions. The Administration supports the enactment of 
this legislation.
    This Administration has been actively pursuing initiatives 
to revitalize and enhance the competitiveness of our 
shipbuilding industry. The OECD Shipbuilding Agreement, one of 
the five elements of the President's plan, is intended to 
eliminate foreign commercial shipbuilding subsidies and other 
trade distorting practices and to allow U.S. shipbuilders to 
compete on equal terms with foreign shipbuilders. The agreement 
should have a positive long term impact by creating new 
commercial opportunities for those defense-oriented companies 
that are willing and able to compete in the international 
commercial shipbuilding market. Capturing a share of the world 
market will help sustain the viability of this important 
industrial base for the Navy's future and benefit the Navy by 
reducing construction costs.
    The Agreement will not adversely effect our national 
security. It specifically excludes military logistical vessels 
and any features which may be added to vessels that have 
military use. We do not believe the Agreement will obstruct any 
existing or future Department of Defense programs. It does not 
change cabotage laws, that clearly are vital to our national 
security.
    The Office of Management and Budget advises that, from the 
standpoint of the Administration's program, there is no 
objection to the presentation of this report for the 
consideration of the Committee.
            Sincerely,
                                          Judith A. Miller,
                            The United States Trade Representative.
                         Executive Office of the President,
                                    Washington, DC, April 12, 1996.
Hon. Floyd D. Spence,
Chairman, Committee on National Security,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: I wish to bring your attention to an 
important and urgent matter now before the National Security 
Committee. Legislation to implement the OECD Shipbuilding 
Agreement, H.R. 2754, was reported by the House Committee on 
Ways and Means on March 21 by a wide margin. It will now be 
referred to your Committee for review of its maritime 
provisions. The Administration strongly supports the prompt 
enactment of H.R. 2754, which has bipartisan sponsorship led by 
Congressmen Philip Crane (R-IL) and Sam Gibbons (D-FL), and 
would urge your favorable consideration of this bill.
    The Shipbuilding Agreement, which was signed by the United 
States in December 1994, is designed to eliminate large foreign 
subsidies for shipbuilding and to provide, for the first time, 
a mechanism to address the dumping of ships. These disciplines 
will level the playing field for U.S. shipbuilders, enabling 
them to compete effectively in the huge international ship 
construction market. This will provide new sales and employment 
opportunities which will strengthen the American commercial 
shipbuilding industry and, thus, have a positive impact on our 
defense shipbuilding industrial base as well.
    The Agreement was scheduled to enter into force on January 
1, 1996, subsequent to its ratification by all Parties to it. 
This did not occur because the United States and Japan failed 
to complete their respective ratification processes last year. 
The other Parties to the Agreement (the European Union, Korea 
and Norway) formally ratified it on December 12, 1995. The 
Government of Japan has indicated that its delay was purely 
procedural and expects to complete its process within the first 
half of this year. Consequently, the Parties to the Agreement 
agreed to extend the ratification date to June 15, 1996, and 
entry into force to July 15, 1996.
    It is extremely important that the United States meet this 
new ratification deadline. Several European Union States--
France, Germany, Greece and Spain--are presently encountering 
considerable social pressure to introduce new shipbuilding 
subsidies. We fear that if the Agreement is not ratified by the 
United States in time to meet the June 15 deadline, there is a 
high probability the Agreement will unravel. If this occurs, 
the chance for establishing strong disciplines in the 
commercial shipbuilding sector and enabling our shipbuilders to 
compete on a level playing field will be lost. Moreover, such 
an outcome will reflect poorly on the credibility of the United 
States, which was the initiator and driving force behind these 
negotiations.
    I have enclosed a brief fact sheet which addresses a number 
of the points made in a March 18 ``Dear Colleague'' letter, 
which appears to be based on a misunderstanding of the 
provisions of the Agreement and, in some cases, on inaccurate 
press reports. This letter, which was sent to all Members, 
asserts that the Agreement will harm U.S. interests and urges 
Members to oppose H.R. 2754.
    I believe the OECD Shipbuilding Agreement is balanced and 
that renegotiation of it is not a viable option. In fact, I 
think it is clear that we paid a modest price to obtain major 
foreign concessions to end distortive commercial shipbuilding 
practices. In order to meet the June 15 ratification deadline, 
it is essential that H.R. 2754 be enacted as quickly as 
possible. Again, I urge your favorable consideration of this 
bill.
            Sincerely,
                                                    Michael Kantor.

                 OECD Shipbuilding Agreement Fact Sheet

    The following addresses a number of concerns expressed in a 
March 18 ``Dear Colleague'' letter in opposition to H.R. 2754, 
``The OECD Shipbuilding Agreement''
    With few exceptions, the Agreement eliminates foreign 
subsidy programs as of its entry into force. It does not allow 
billions of dollars of subsidies to continue until January 1, 
1999 or permit billions of dollars to be granted for new 
subsidy programs.
    The only permanent exemptions to the prohibition on 
subsidies are for limited government assistance to research and 
development and for worker retirement, severance and retraining 
associated with the downsizing of shipyards.
    Certain restructuring programs of Portugal, Spain and 
Belgium are allowed to continue for limited periods after entry 
into force of the Agreement. These programs were already in 
operation prior to conclusion of the negotiations. Expenditures 
are limited to the amounts and purposes described in the 
Agreement, and are primarily intended to address the social 
costs of production capacity reduction. Only $85 million of 
Spanish assistance may be earmarked for shipyard investments 
after entry into force of the Agreement.
    There are no special exemptions for France or Germany or 
any other counties. All assistance provided must be in 
accordance with the Agreement.
    While Title XI finance guarantee program must be brought 
into conformance with the Agreement, this is a small price to 
pay for the elimination of large foreign direct subsidy 
programs.
    A large part of its current effectiveness is due to the 
Agreement's ``standstill'' provision.
    The financing provision is one of the four key aspects of 
the Agreement; it is virtually certain the Agreement will 
unravel if the U.S. refuses to implement one of its key 
elements.
    It is unrealistic to believe Title XI will remain an 
effective promotional tool if the Agreement is not implemented; 
other countries will move quickly to match or exceed its terms 
to remain competitive.
    In his October 1, 1993 announcement to Congress of his 
``five point program,'' to strengthen America's shipyards, 
including the enhanced Title XI program, President Clinton 
stated that if multilateral agreement were reached ``. . . any 
conditions of the Title XI loan guarantee program that were 
inconsistent with the agreement would have to be modified or 
eliminated.''
    The Jones Act home build requirement is permanently 
exempted from the Agreement
    Other countries, however, must eliminate their ``home 
build'' requirements, which are widely perceived as trade 
distortive. Our negotiating partners were persuaded to agree to 
this exception because Jones Act construction is quite small 
relative to total global commercial shipbuilding volume; the 
Agreement does, however, provide a mechanism to deal with their 
concerns that a major increase in Jones Act construction might 
undermine the balance of rights and obligations in the 
Agreement.
    It is extremely unlikely that U.S. shipbuilders would 
deliver Jones Act vessels exceeding 200,000 gross tons per 
year. A recent Department of Transportation survey shows that 
the total cumulative U.S. vessel order book (Jones Act and 
other) amounted to only 191,500 gross tons at the end of 1995, 
which will be delivered over a multi-year period.
    Even in the unlikely case that Jones Act construction 
became extremely active, such activity would not place the 
United States in violation of the Agreement, since the 
coastwise laws are exempted from the Agreement. There would be 
no obligation to change the Jones Act.
    These negotiations were initiated at the request of U.S. 
industry--including the large defense-oriented shipbuilding 
yards.
    Industry throughout these negotiations made a strong case 
that strict disciplines on foreign subsidies were necessary to 
allow them entry into the international commercial market.
    These negotiations were strongly supported by Congress.
    There have been hearings in the Trade Subcommittee of the 
House Committee on Ways and Means on March 21, 1991 and July 1, 
1993; by the Merchant Marine Subcommittee of the House
    Committee on Merchant Marine and Fisheries on February 19, 
1992, and June 30, 1993; and by the Trade Subcommittee of the 
Senate Finance Committee on August 2, 1991, and November 18, 
1993. At these hearings, Congress showed support for the OECD 
shipbuilding negotiations.
    Several pieces of legislation were introduced in both 
chambers of Congress during the 102nd and 103rd Sessions of 
Congress that would have imposed sanctions on subsidized ships 
entering U.S. waters unless their countries entered into an 
agreement with the U.S. to eliminate subsidies to their 
shipbuilding industries. These bills were aimed at encouraging 
foreign governments to conclude the OECD shipbuilding 
negotiations.
    One of these bills, H.R. 2056 was passed by the House of 
Representatives on May 13, 1992.

                           COMMITTEE POSITION

    On May 29, 1996, the Committee on National Security, a 
quorum being present, approved H.R. 2754, as amended, by voice 
vote.

                              FISCAL DATA

    Pursuant to clause 7 of Rule XIII of the Rules of the House 
of Representatives, the committee attempted to ascertain annual 
outlays resulting from the bill during fiscal year 1997 and the 
four following fiscal years. The results of such efforts are 
reflected in the cost estimate prepared by the Director of the 
Congressional Budget Office under section 403 of the 
Congressional Budget Act of 1974, which is included in this 
report pursuant to clause 2(l)(3)(C) of House Rule XI.

                  CONGRESSIONAL BUDGET OFFICE ESTIMATE

    In compliance with clause 2(l)(3)(C) of rule XI of the 
Rules of the House of Representatives, the cost estimate 
prepared by the Congressional Budget Office and submitted 
pursuant to section 403(a) of the Congressional Budget Act of 
1974 is as follows:

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

                                                      May 30, 1996.
Hon. Floyd Spence,
Chairman, Committee on National Security,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed H.R. 2754, the Shipbuilding Trade Agreement Act, as 
amended and ordered reported by the Committee on National 
Security on May 29, 1996. CBO and JCT estimate that H.R. 2754 
would decrease governmental receipts by $2 million in fiscal 
year 1996 and increase governmental receipts by $15 million 
over fiscal years 1996-2002. H.R. 2754 contains no private 
sector or intergovernmental mandates as defined in Public Law 
104-4 and would impose no direct costs on state, local, or 
tribal governments.
    The OECD Shipbuilding Trade Agreement was signed on 
December 21, 1994, by the following countries: The Commission 
of the European Communities including the United Kingdom, 
Germany, France, Italy, Spain, Ireland, the Netherlands, 
Belgium, Luxembourg, Greece, Portugal, Denmark, Austria, Sweden 
and Finland; Japan; South Korea; Norway; and the United States. 
Under current law (19 USC 1466), US flag vessels are subject to 
a 50 percent ad valorem duty on the cost of equipment and non-
emergency repairs obtained in foreign countries. As mandated by 
the OECD agreement, section 201 of the proposed legislation 
would partially repeal the duty by exempting repairs to US flag 
vessels done in OECD signatory countries.
    CBO estimates that section 201 of the bill, pertaining to 
vessel repair duties, would decrease governmental receipts by 
$2 million in fiscal year 1996 and by $50 million over the 
fiscal years 1996-2002, net of payroll and income tax offsets. 
The estimate of revenue loss is based on the historical 
collections. Over the past several years, collections have been 
between $15 million and $25 million annually. According to the 
US Maritime Administration (MARAD), in December 1995 there were 
141 vessels in the US flag fleet. However, MARAD predicts a 
steady decline in the size of the US fleet due to the impending 
expiration and expected termination of the operating-
differential subsidy program, through which payments are made 
to US vessels on specified trade routes. This estimate assumes 
that future collections of the vessel repair duty would decline 
as a result of this reduction in the size of the fleet.
    Currently about half of all repairs on US vessels in 
foreign ports are performed in OECD signatory countries. If 
section 201 of the bill is enacted, CBO assumes that additional 
US vessel repairs would be diverted to ports in OECD countries 
to take advantage of the duty-free repair treatment. This 
estimate assumes that this provision will be effective on July 
15, 1996.
    Section 301 of the bill expands penalties for failure to 
satisfy the filing requirements for claiming the exemption from 
US tax that is available to certain foreign persons with 
respect to income from international operation of ships. The 
Joint Commerce on Taxation estimates that this provision would 
increase governmental receipts by $3 million in fiscal year 
1997 and by $65 million over fiscal years 1996-2002. CBO 
concurs with this estimate.

                                          REVENUE EFFECTS OF H.R. 2754                                          
                                    [By fiscal year, in billions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                 1996        1997        1998        1999        2000        2001        2002   
----------------------------------------------------------------------------------------------------------------
Projected revenues under                                                                                        
 current law\1\.............   1,417.583   1,475.572   1,547.285   1,619.979   1,699.866   1,789.771   1,882.950
Proposed changes:                                                                                               
  Section 201...............      -0.002      -0.010      -0.012      -0.007      -0.004      -0.009      -0.006
  Section 301...............       0.000       0.003       0.006       0.012       0.015       0.015       0.014
                             -----------------------------------------------------------------------------------
      Total.................      -0.002      -0.007      -0.006       0.005       0.011       0.006       0.008
Projected revenues under                                                                                        
 H.R. 2754..................   1,417.581   1,475.565   1,547.279   1,619.984   1,699.877   1,789.777   1,882.958
----------------------------------------------------------------------------------------------------------------
\1\ Includes the revenue effects of P.L. 104-7 (H.R. 831), P.L. 104-104 (S. 652), P.L. 104-117 (H.R. 2778), P.L.
  104-121 (H.R. 3136), P.L. 104-132 (S. 735), and P.L. 104-134 (H.R. 3019).                                     

    Section 252 of the Balanced Budget and Emergency Deficit 
Control Act of 1985 sets up pay-as-you-go procedures for 
legislation affecting receipts or direct spending through 1998. 
Because this bill would affect receipts, pay-as-you-go 
procedures would apply.
    These effects are summarized in the table below.

                      PAY-AS-YOU-GO CONSIDERATIONS                      
                [By fiscal year, in millions of dollars]                
------------------------------------------------------------------------
                                            1996       1997       1998  
------------------------------------------------------------------------
Changes in Receipts....................         -2         -7         -6
Changes in Outlays.....................      (\1\)      (\1\)      (\1\)
------------------------------------------------------------------------
\1\ Not applicable.                                                     

    If you would like further details, please feel free to 
contact me or your staff may wish to contact Stephanie Weiner.
            Sincerely,
                                         June E. O'Neill, Director.

                        COMMITTEE COST ESTIMATE

    Pursuant to clause 7(a) of Rule XIII of the Rules of the 
House of Representatives, the committee generally concurs with 
the estimate as contained in the report of the Congressional 
Budget Office.

                       INFLATION IMPACT STATEMENT

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the committee concludes that the bill 
would have no significant inflationary impact.

                           OVERSIGHT FINDINGS

    With respect to clause 2(l)(3)(A) of rule XI of the Rules 
of the House of Representatives, this legislation results from 
hearings and other oversight activities conducted by the 
committee pursuant to clause 2(b)(1) of rule X.
    With respect to clause 2(l)(3)(B) of rule XI of the Rules 
of the House of Representatives and section 308(a)(1) of the 
Congressional Budget Act of 1974, this legislation does not 
include any new spending or credit authority, nor does it 
provide for any increase or decrease in tax revenues or 
expenditures. The bill does, however, authorize appropriations. 
Other fiscal features of this legislation are addressed in the 
estimate prepared by the Director of the Congressional Budget 
Office under section 403 of the Congressional Budget Act of 
1974.
    With respect to clause 2(l)(3)(D) of rule XI of the Rules 
of the House of Representatives, the committee has not received 
a report from the Committee on Government Reform and Oversight 
pertaining to the subject matter of H.R. 2754.

                     STATEMENT OF FEDERAL MANDATES

    Pursuant to section 423 of Public Law 104-4, this 
legislation contains no federal mandates with respect to state, 
local, and tribal governments, nor with respect to the private 
sector. Similarly, the bill provides no unfunded federal 
intergovernmental mandates.

                             ROLL CALL VOTE

    In accordance with clause 2(l)(2)(B) of rule XI of the 
Rules of the House of Representatives, roll call and voice 
votes were taken with respect to the committee's consideration 
of H.R. 2754. The record of the roll call vote is attached to 
this report.
    The committee ordered H.R. 2754 reported to the House with 
a favorable recommendation by a voice vote, a quorum being 
present.


         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italics, existing law in which no change is proposed 
is shown in roman):

                           TARIFF ACT OF 1930

          * * * * * * *

                  TITLE IV--ADMINISTRATIVE PROVISIONS

          * * * * * * *

      Part II--Report, Entry, and Unlading of Vessels and Vehicles

          * * * * * * *

SEC. 466. EQUIPMENT AND REPAIRS OF VESSELS

  (a)  * * *
          * * * * * * *
  (i) The duty imposed by subsection (a) shall not apply with 
respect to activities occurring in a Shipbuilding Agreement 
Party, as defined in section 861(22), with respect to--
          (1) self-propelled seagoing vessels of 100 gross tons 
        or more that are used for transportation of goods or 
        persons or for performance of a specialized service 
        (including, but not limited to, ice breakers and 
        dredges), and
          (2) tugs of 365 kilowatts or more.
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. 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 807, 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 a vessel included in the list 
        described in subsection (a), 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 Nationality Act.
          (2) To lade or unlade any crewmember of such 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 
        such vessel.
          (5) To lade or unlade such other merchandise, 
        baggage, or passenger 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) Petition for correction.--If the master of any 
        vessel whose application for a permit to lade or unlade 
        has been denied under 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) Inapplicability of sections 514 and 520.--
        Notwithstanding paragraph (1), imposition of 
        countermeasures under this section shall not be deemed 
        an exclusion or other protestable decision under 
        section 514, and shall not be subject to correction 
        under section 520.
          (3) Petitions seeking administrative review.--Any 
        petition seeking administrative review of any matter 
        regarding the Secretary of Commerce's decision to list 
        a vessel under section 807 must be brought under that 
        section.
  (d) Penalties.--In addition to any other provision of law, 
the Customs Service may impose a civil penalty of 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 under this 
        section.
          * * * * * * *

      Part III--Ascertainment, Collection, and Recovery of Duties

          * * * * * * *

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

  (a) Review of Determination.--
          (1) In general.--Within 30 days after the date of 
        publication in the Federal Register of--
                  (A)(i) a determination by the administering 
                authority under section 802(c) not to initiate 
                an investigation,
                  (ii) a negative determination by the 
                Commission under section 803(a) 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 806(d) or (e),
                  (iv) a determination by the administering 
                authority under section 807(c),
                  (v) a determination by the administering 
                authority in a review under section 807(d),
                  (vi) a determination by the administering 
                authority concerning whether to extend the 
                scope or duration of a countermeasure order 
                under section 807(e)(3)(B)(ii),
                  (vii) a determination by the administering 
                authority to amend a countermeasure order under 
                section 807(e)(6),
                  (viii) a determination by the administering 
                authority in a review under section 807(g),
                  (ix) a determination by the administering 
                authority under section 807(i) to terminate 
                proceedings, or to amend or revoke a 
                countermeasure order,
                  (x) a determination by the administering 
                authority under section 845(b), 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 subparagraph (A) of 
                paragraph (2),
                  (ii) notice of a determination described in 
                subparagraph (B) of paragraph (2),
                  (iii) notice of implementation of a 
                determination described in subparagraph (C) of 
                paragraph (2), or
                  (iv) notice of revocation of an injurious 
                pricing order based on a determination 
                described in subparagraph (D) of paragraph (2),
        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.
          (2) Reviewable determinations.--The determinations 
        referred to in paragraph (1)(B) are--
                  (A) a final affirmative determination by the 
                administering authority or by the Commission 
                under section 805, including any negative part 
                of such a determination (other than a part 
                referred to in subparagraph (B)),
                  (B) a final negative determination by the 
                administering authority or the Commission under 
                section 805,
                  (C) a determination by the administering 
                authority under section 845(b), with respect to 
                a matter described in paragraph (1)(A) of that 
                section, and
                  (D) a determination by the Commission under 
                section 845(a) that results in the revocation 
                of an injurious pricing order.
          (3) Exception.--Notwithstanding the 30-day limitation 
        imposed by paragraph (1) with regard to an order 
        described in paragraph (1)(B)(i), a final affirmative 
        determination by the administering authority under 
        section 805 may be contested by commencing an action, 
        in accordance with the provisions of paragraph (1), 
        within 30 days after the date of publication in the 
        Federal Register of a final negative determination by 
        the Commission under section 805.
          (4) Procedures and fees.--The procedures and fees set 
        forth in chapter 169 of title 28, United States Code, 
        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 subparagraph 
                (A) of subsection (a)(1), to be arbitrary, 
                capricious, an abuse of discretion, or 
                otherwise not in accordance with law, or
                  (B) in an action brought under subparagraph 
                (B) of subsection (a)(1), to be unsupported by 
                substantial evidence on the record, or 
                otherwise not in accordance with law.
          (2) Record for review.--
                  (A) In general.--For 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 
                        843(a)(2); 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 shall have the right to appear and 
be heard as a party in interest before the United States Court 
of International Trade in an action under this section. 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.--For purposes of this section:
          (1) Administering authority.--The term 
        ``administering authority'' has the meaning given that 
        term in section 861(1).
          (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 861(17).
          * * * * * * *

     TITLE VIII--INJURIOUS PRICING AND COUNTERMEASURES RELATING TO 
                              SHIPBUILDING

        Subtitle A--Injurious Pricing Charge and Countermeasures

    Sec. 801. Injurious pricing charge.
    Sec. 802. Procedures for initiating an injurious pricing 
              investigation.
    Sec. 803. Preliminary determinations.
    Sec. 804. Termination or suspension of investigation.
    Sec. 805. Final determinations.
    Sec. 806. Imposition and collection of injurious pricing charge.
    Sec. 807. Imposition of countermeasures.
    Sec. 808. Injurious pricing petitions by third countries.
    Sec. 809. Third country sales.

                        Subtitle B--Special Rules

    Sec. 821. Export price.
    Sec. 822. Normal value.
    Sec. 823. Currency conversion.

                         Subtitle C--Procedures

    Sec. 841. Hearings.
    Sec. 842. Determinations on the basis of the facts available.
    Sec. 843. Access to information.
    Sec. 844. Conduct of investigations.
    Sec. 845. Administrative action following shipbuilding agreement 
              panel reports.

                         Subtitle D--Definitions

    Sec. 861. Definitions.

        Subtitle A--Injurious Pricing Charge and Countermeasures

SEC. 801. INJURIOUS PRICING CHARGE.

  (a) Basis for Charge.--If--
          (1) the administering authority determines that a 
        foreign vessel 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 805(b)(1), a reference to the 
        sale of a foreign vessel includes the creation or 
        transfer of an ownership interest in the vessel, except 
        for an ownership interest created or acquired solely 
        for the purpose of providing security for a normal 
        commercial loan.
  (b) Foreign Vessels Not Merchandise.--No foreign vessel may 
be considered to be, or to be part of, a class or kind of 
merchandise for purposes of subtitle B of title VII.

SEC. 802. PROCEDURES FOR INITIATING AN INJURIOUS PRICING INVESTIGATION.

  (a) Initiation by Administering Authority.--
          (1) General rule.--Except in the case in which 
        subsection (d)(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 charge under section 
        801(a) exist, and whether a producer described in 
        section 861(17)(C) would meet the criteria of 
        subsection (b)(1)(B) for a petitioner.
          (2) Time for initiation by administering authority.--
        An investigation may only be initiated under paragraph 
        (1) within 6 months after the time the administering 
        authority first knew or should have known of the sale 
        of the vessel. Any period in which subsection (d)(6)(A) 
        applies shall not be included in calculating that 6-
        month period.
  (b) Initiation by Petition.--
          (1) Petition requirements.--(A) Except in a case in 
        which subsection (d)(6) applies, an injurious pricing 
        proceeding shall be initiated whenever an interested 
        party, as defined in subparagraph (C), (D), (E), or (F) 
        of section 861(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 801(a) and 
        the elements required under subparagraph (B), (C), (D), 
        or (E) of this paragraph, and which is accompanied by 
        information reasonably available to the petitioner 
        supporting those allegations and identifying the 
        transaction concerned.
          (B)(i) If the petitioner is a producer described in 
        section 861(17)(C), and--
                  (I) if the petitioner was invited to tender a 
                bid on the contract at issue, the petition 
                shall include information indicating that the 
                petitioner actually did so and the bid of the 
                petitioner substantially met the delivery date 
                and technical requirements of the bid, or
                  (II) if the petitioner was not invited to 
                tender a bid, the petition shall include 
                information indicating that the petitioner was 
                capable of building the vessel concerned and, 
                if the petitioner knew or should have known of 
                the proposed purchase, it made demonstrable 
                efforts to conclude a sale with the United 
                States buyer consistent with the delivery date 
                and technical requirements of the buyer.
          (ii) For purposes of clause (i)(II), there is a 
        rebuttable presumption that the petitioner knew or 
        should have known of the proposed purchase if it is 
        demonstrated that--
                  (I) the majority of the producers in the 
                industry have made efforts with the United 
                States buyer to conclude a sale of the subject 
                vessel, or
                  (II) general information on the sale was 
                available from brokers, financiers, 
                classification societies, charterers, trade 
                associations, or other entities normally 
                involved in shipbuilding transactions with whom 
                the petitioner had regular contacts or 
                dealings.
          (C) If the petitioner is an interested party 
        described in section 861(17)(D), the petition shall 
        include information indicating that members of the 
        union or group of workers described in that section are 
        employed by a producer that meets the requirements of 
        subparagraph (B) of this paragraph.
          (D) If the petitioner is an interested party 
        described in section 861(17)(E), the petition shall 
        include information indicating that a member of the 
        association described in that section is a producer 
        that meets the requirements of subparagraph (B) of this 
        paragraph.
          (E) If the petitioner is an interested party 
        described in section 861(17)(F), the petition shall 
        include information indicating that a member of the 
        association described in that section meets the 
        requirements of subparagraph (C) or (D) of this 
        paragraph.
          (F) 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) Deadline.--(i) A petitioner to which 
                paragraph (1)(B)(i)(I) applies shall file the 
                petition no later than the earlier of--
                          (I) 6 months after the time that the 
                        petitioner first knew or should have 
                        known of the sale of the subject 
                        vessel, or
                          (II) 6 months after delivery of the 
                        subject vessel.
                  (ii) A petitioner to which paragraph 
                (1)(B)(i)(II) applies shall--
                          (I) file the petition no later than 
                        the earlier of 9 months after the time 
                        that the petitioner first knew or 
                        should have known of the sale of the 
                        subject vessel, or 6 months after 
                        delivery of the subject vessel, and
                          (II) submit to the administering 
                        authority a notice of intent to file a 
                        petition no later than 6 months after 
                        the time that the petitioner first knew 
                        or should have known of the sale 
                        (unless the petition itself is filed 
                        within that 6-month period).
                  (B) Presumption of knowledge.--For purposes 
                of this paragraph, 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.
  (c) Actions Before Initiating Investigations.--
          (1) Notification of governments.--Before initiating 
        an investigation under either subsection (a) or (b), 
        the administering authority shall notify the government 
        of the exporting country of the investigation. In the 
        case of the initiation of an investigation under 
        subsection (b), such notification shall include a 
        public version of the petition.
          (2) 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 861(17)(C), (D), 
        (E), or (F) before the administering authority makes 
        its decision whether to initiate an investigation 
        pursuant to a petition, 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.
          (3) 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 subsection (b)(1).
  (d) 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 801(a) and the elements required under 
                subsection (b)(1)(B), (C), (D), or (E), 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 included in calculating the 45-day period 
        described in subparagraph (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) applies.
          (3) Negative determinations.--If--
                  (A) the determination under clause (i) or 
                (ii) of paragraph (1)(A) is negative, or
                  (B) 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 a 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 a 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 of the subject vessel, 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 a 
                like vessel--
                          (i) the administering authority shall 
                        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 861(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 861(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, an antidumping proceeding conducted by 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 the 
                imposition of antidumping measures or a 
                negative determination with respect to whether 
                the sale was at less than fair value or with 
                respect to injury.
  (e) Notification to Commission of Determination.--The 
administering authority shall--
          (1) notify the Commission immediately of any 
        determination it makes under subsection (a) or (d), 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. 803. 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 
        802(d)(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 or, in the case of an 
        investigation initiated under section 802(a), within 90 
        days after the date on which the Commission receives 
        notice from the administering authority that the 
        investigation has been initiated.
  (b) Preliminary Determination by Administering Authority.--
          (1) Period of injurious pricing investigation.--(A) 
        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 subject vessel was 
        sold at less than fair value.
          (B) 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, the administering authority shall make 
        its determination within 160 days after the date of 
        delivery of the foreign like vessel.
          (C) If normal value is to be determined on the basis 
        of constructed value, the administering authority shall 
        make its determination within 160 days after the date 
        of delivery of the subject vessel.
          (D) In cases in which subparagraph (B) or (C) does 
        not apply, the administering authority shall make its 
        determination within 160 days after the date on which 
        the administering authority initiates the investigation 
        under section 802.
          (E) In no event shall the administering authority 
        make its determination before an affirmative 
        determination is made by the Commission under 
        subsection (a).
          (2) 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. For purposes of the preceding 
        sentence, an injurious pricing margin is de minimis if 
        the administering authority determines that the margin 
        is less than 2 percent of the export price.
  (c) Extension of Period in Extraordinarily Complicated Cases 
or for Good Cause.--
          (1) In general.--If--
                  (A) the administering authority concludes 
                that the parties concerned are cooperating and 
                determines that--
                          (i) the case is 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
                  (B) 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 its preliminary determination.
          (2) Length of postponement.--The preliminary 
        determination may be postponed under paragraph (1)(A) 
        or (B) until not later than the 190th day after--
                  (A) the date of delivery of the foreign like 
                vessel, if subsection (b)(1)(B) applies,
                  (B) the date of delivery of the subject 
                vessel, if subsection (b)(1)(C) applies, or
                  (C) the date on which the administering 
                authority initiates an investigation under 
                section 802, in a case in which subsection 
                (b)(1)(D) applies.
          (3) Notice of postponement.--The administering 
        authority 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. 804. 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 
        803(b).
  (b) Termination of Investigations Initiated by Administering 
Authority.--The administering authority may terminate any 
investigation initiated by the administering authority under 
section 802(a) after providing notice of such termination to 
all parties to the investigation.
  (c) Alternate Equivalent Remedy.--The criteria set forth in 
subparagraphs (A) through (D) of section 806(e)(1) shall apply 
to any agreement that forms the basis for termination of an 
investigation under subsection (a) or (b).
  (d) Proceedings by WTO Members.--
          (1) Suspension of investigation.--The administering 
        authority and the Commission shall suspend an 
        investigation under this section if a WTO member that 
        is not a Shipbuilding Agreement Party initiates an 
        antidumping proceeding described in section 861(29)(A) 
        with respect to the sale of the subject vessel.
          (2) Termination of investigation.--If an antidumping 
        proceeding described in paragraph (1) is concluded by--
                  (A) the imposition of antidumping measures, 
                or
                  (B) 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) Continuation of investigation.--(A) If such a 
        proceeding--
                  (i) is concluded by a result other than a 
                result described in paragraph (2), or
                  (ii) is not concluded within one year from 
                the date of the 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 be included in calculating 
        deadlines applicable with respect to the investigation.
          (B) Notwithstanding subparagraph (A)(ii), if the 
        proceeding is concluded by a result described in 
        paragraph (2)(A), the administering authority and the 
        Commission shall terminate the investigation under this 
        section.

SEC. 805. FINAL DETERMINATIONS.

  (a) Determinations by Administering Authority.--
          (1) In general.--Within 75 days after the date of its 
        preliminary determination under section 803(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.--(A) The 
        administering authority may postpone making the final 
        determination under paragraph (1) until not later than 
        290 days after--
                  (i) the date of delivery of the foreign like 
                vessel, in an investigation to which section 
                803(b)(1)(B) applies,
                  (ii) the date of delivery of the subject 
                vessel, in an investigation to which section 
                803(b)(1)(C) applies, or
                  (iii) the date on which the administering 
                authority initiates the investigation under 
                section 802, in an investigation to which 
                section 803(b)(1)(D) applies.
          (B) The administering authority may apply 
        subparagraph (A) if a request in writing is made by--
                  (i) the producer of the subject vessel, in a 
                proceeding in which the preliminary 
                determination by the administering authority 
                under section 803(b) was affirmative, or
                  (ii) the petitioner, in a proceeding in which 
                the preliminary determination by the 
                administering authority under section 803(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 803(b)(2).
  (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).
          (2) Period for injury determination following 
        affirmative preliminary determination by administering 
        authority.--If the preliminary determination by the 
        administering authority under section 803(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 803(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 803(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 
                subject 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 806. 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. 806. 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 
805(b), the administering authority shall publish an order 
imposing an injurious pricing charge on the foreign producer of 
the subject vessel which--
          (1) directs the foreign 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 of the subject 
        vessel,
          (2) includes the identity and location of the foreign 
        producer and a description of the subject vessel, in 
        such detail as the administering authority deems 
        necessary, and
          (3) informs the foreign 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 807,
                  (B) payment made after the deadline described 
                in paragraph (1) shall be subject to interest 
                charges at the Commercial Interest Reference 
                Rate (CIRR), and
                  (C) the foreign producer may request an 
                extension of the due date for payment under 
                subsection (b).
  (b) Extension of Due Date for Payment in Extraordinary 
Circumstances.--
          (1) Extension.--Upon request, the administering 
        authority may amend the order under subsection (a) 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 the administering authority determines 
        that full payment in 180 days would render the producer 
        insolvent or would be incompatible with a judicially 
        supervised reorganization. When an extended payment 
        schedule provides for a series of partial payments, the 
        administering authority shall specify the circumstances 
        under which default on one or more payments will result 
        in the imposition of countermeasures.
          (2) Interest charges.--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 at the CIRR.
  (c) Notification of Order.--The administering authority shall 
deliver a copy of the order requesting payment to the foreign 
producer of the subject vessel and to an appropriate 
representative of the government of the exporting country.
  (d) Revocation of Order.--The administering authority--
          (1) may revoke an injurious pricing order if the 
        administering authority determines that producers 
        accounting for substantially all of the capacity to 
        produce a domestic like vessel have expressed a lack of 
        interest in the order, and
          (2) shall revoke an injurious pricing order--
                  (A) if the sale of the vessel that was the 
                subject of the injurious pricing determination 
                is voided,
                  (B) if the injurious pricing charge is paid 
                in full, including any interest accrued for 
                late payment,
                  (C) upon full implementation of an 
                alternative equivalent remedy described in 
                subsection (e), or
                  (D) if, 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 a WTO member who is not 
                a Shipbuilding Agreement Party has been 
                completed and resulted in the imposition of 
                antidumping measures.
  (e) Alternative Equivalent Remedy.--
          (1) Agreement for alternate remedy.--The 
        administering authority may suspend an injurious 
        pricing order if the administering authority enters 
        into an agreement with the foreign producer subject to 
        the order 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 consultations and submission of comments.--
        Before entering into an agreement under paragraph (1), 
        the administering authority shall consult with the 
        industry, and provide for the submission of comments by 
        interested parties, with respect to the agreement.
          (3) Material violations of agreement.--If the 
        injurious pricing order has been suspended under 
        paragraph (1), and the administering authority 
        determines that the foreign producer concerned has 
        materially violated the terms of the agreement under 
        paragraph (1), the administering authority shall 
        terminate the suspension.

SEC. 807. IMPOSITION OF COUNTERMEASURES.

  (a) General Rule.--
          (1) Issuance of order imposing countermeasures.--
        Unless an injurious pricing order is revoked or 
        suspended under section 806 (d) or (e), the 
        administering authority shall issue an order imposing 
        countermeasures.
          (2) Contents of order.--The countermeasure order 
        shall--
                  (A) state that, as provided in section 468, 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 806, and
                  (B) specify the scope and duration of the 
                prohibition on the issuance of a permit to lade 
                or unlade passengers or merchandise.
  (b) Notice of Intent To Impose Countermeasures.--
          (1) General rule.--The administering authority shall 
        issue a notice of intent to impose countermeasures not 
        later than 30 days before the expiration of the time 
        for payment specified in the injurious pricing order 
        (or extended payment provided for under section 
        806(b)), and shall publish the notice in the Federal 
        Register within 7 days after issuing the notice.
          (2) Elements of the notice of intent.--The notice of 
        intent 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--
                          (i) built by the foreign producer 
                        subject to the proposed 
                        countermeasures, and
                          (ii) with respect to which the 
                        material terms of sale are established 
                        within a period of 4 consecutive years 
                        beginning on the date that is 30 days 
                        after publication in the Fedeal 
                        Register of the notice of intent 
                        described in paragraph (1).
                  (B) Duration.--For each vessel described in 
                subparagraph (A), a permit to lade or unlade 
                passengers or merchandise may not be issued for 
                a period of 4 years after the date of delivery 
                of the vessel.
  (c) Determination To Impose Countermeasures; Order.--
          (1) General rule.--The administering authority shall, 
        within the time specified in paragraph (2), issue a 
        determination and order imposing countermeasures.
          (2) Time for determination.--The determination shall 
        be issued within 90 days after the date on which the 
        notice of intent to impose countermeasures under 
        subsection (b) is published in the Federal Register. 
        The administering authority shall publish the 
        determination, and the order described in paragraph 
        (4), in the Federal Register within 7 days after 
        issuing the final determination, and shall provide a 
        copy of the determination and order to the Customs 
        Service.
          (3) Content of the determination.--In the 
        determination imposing countermeasures, the 
        administering authority shall determine whether, in 
        light of all of the circumstances, an interested party 
        has demonstrated that the scope or duration of the 
        countermeasures described in subsection (b)(2) should 
        be narrower or shorter than the scope or duration set 
        forth in the notice of intent to impose 
        countermeasures.
          (4) Order.--At the same time it issues its 
        determination, the administering authority shall issue 
        an order imposing countermeasures, consistent with its 
        determination.
  (d) Administrative Review of Determination To Impose 
Countermeasures.--
          (1) Request for review.--Each year, in the 
        anniversary month of the issuance of the order imposing 
        countermeasures under subsection (c), 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 the 
                countermeasures determined under subsection 
                (c)(3), 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 
                after the end of the anniversary month of the 
                issuance of the order imposing countermeasures, 
                and
                  (B) 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 on which the notice of 
        initiation of the 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 the 
        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) Request for extension beyond 4 years.--If 
                the request seeks an extension that would cause 
                the scope or duration of countermeasures to 
                exceed 4 years, including any prior extensions, 
                the 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 specifies the vessels 
                that fall within the scope of the order by 
                virtue of the establishment of material terms 
                of sale within that period.
                  (B) Other requests.--If the request seeks an 
                extension under paragraph (1) other than one 
                described in subparagraph (A), the 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 referred to in subparagraph (A).
          (3) Determination.--
                  (A) Notice of request for extension.--If a 
                proper request has been received under 
                paragraph (1), the administering authority 
                shall publish notice of initiation of an 
                extension proceeding in the Federal Register 
                not later than 15 days after the applicable 
                deadline in paragraph (2) for requesting the 
                extension.
                  (B) Procedures.--
                          (i) Requests for extension beyond 4 
                        years.--If paragraph (2)(A) applies to 
                        the request, the administering 
                        authority shall consult with the Trade 
                        Representative under paragraph (4).
                          (ii) Other requests.--If paragraph 
                        (2)(B) applies to the request, the 
                        administering authority shall 
                        determine, within 90 days after the 
                        date on which the notice of initiation 
                        of the proceeding is 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 4 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 shall inform the 
        party requesting the extension of the countermeasures 
        of the reasons for its decision in writing. The 
        decision shall not be subject to judicial review.
          (6) Panel proceedings.--If, based on consultations 
        under paragraph (4), the Trade Representative requests 
        the establishment of a panel under the Shipbuilding 
        Agreement to authorize an extension of the period of 
        countermeasures, and the panel authorizes such an 
        extension, the administering authority shall promptly 
        amend the countermeasure order. 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 
        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 under the determination.
          (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) The name and general description of the 
                vessel.
                  (B) The vessel identification number.
                  (C) The shipyard where the vessel was 
                constructed.
                  (D) The last-known registry of the vessel.
                  (E) The name and address of the last-known 
                owner of the vessel.
                  (F) The delivery date of the vessel.
                  (G) The remaining duration of countermeasures 
                on the vessel.
                  (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 under section 802(b),
                  (ii) the United States Customs Service,
                  (iii) the Secretariat of the Organization for 
                Economic Cooperation and Development,
                  (iv) the owners of vessels on the list,
                  (v) the shipyards on the list, and
                  (vi) the government of the country in which a 
                shipyard on the list 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 clauses (i), (ii), 
                and (iii) of subparagraph (A), and,
                  (ii) if the amendment affects their 
                interests, the parties listed in clauses (iv), 
                (v), and (vi) of subparagraph (A).
  (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 
        subsection (f)(1), including any amendments thereto, to 
        determine whether--
                  (i) a vessel included in the list does not 
                fall within the scope of the applicable 
                countermeasure order and should be deleted, or
                  (ii) a vessel not included in the list falls 
                within the scope of the applicable 
                countermeasure order and should be added.
          (B) Any request seeking a determination described in 
        subparagraph (A)(i) shall be made within 90 days after 
        the date of publication of the applicable list.
          (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 the 
                        request is received, or
                          (ii) if the request seeks a 
                        determination described in paragraph 
                        (1)(A)(i), not later than 15 days after 
                        the deadline described 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 in the Federal Register the determination and 
        any such amendment to the list.
  (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 injurious pricing order revoked or 
        suspended.--If an injurious pricing order has been 
        revoked or suspended under section 806(d) or (e), the 
        administering authority shall, as appropriate, suspend 
        or terminate proceedings under this section with 
        respect to that order, or suspend or revoke a 
        countermeasure order issued with respect to that 
        injurious pricing order.
          (2) If payment date amended.--(A) Subject to 
        subparagraph (C), if the payment date under an 
        injurious pricing order is amended under section 845, 
        the administering authority shall, as appropriate, 
        suspend proceedings or modify deadlines under this 
        section, or suspend or amend a countermeasure order 
        issued with respect to that injurious pricing order.
          (B) In taking action under subparagraph (A), the 
        administering authority shall ensure that 
        countermeasures are not applied before the date that is 
        30 days after publication in the Federal Register of 
        the amended payment date.
          (C) If--
                  (i) a countermeasure order is issued under 
                subsection (c) before an amendment is made 
                under section 845 to the payment date of the 
                injurious pricing order to which the 
                countermeasure order applies, 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, in lieu of acting 
        under subparagraph (A), reinstitute proceedings under 
        subsection (c) for purposes of issuing a new 
        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 the request of an interested party, shall hold a 
        hearing in accordance with section 841(b) in connection 
        with that proceeding, or
          (B) in a proceeding under subsection (e) or (g), upon 
        the request of an interested party, may hold a hearing 
        in accordance with section 841(b) in connection with 
        that proceeding.

SEC. 808. 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, 
        producing or capable of producing a like vessel 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 under the 
Shipbuilding Agreement, shall determine whether to initiate an 
investigation described in subsection (a).
  (c) Determinations.--Upon initiation of an investigation 
under subsection (a), the Trade Representative shall request 
the following determinations be made in accordance with 
substantive and procedural requirements specified by the Trade 
Representative, notwithstanding any other provision 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 
        determinations required by subsection (b), and
          (2) by the administering authority and the 
        Commission, in making the determinations 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 806, and
          (2) make such determinations and take such other 
        actions as are required by sections 806 and 807, as if 
        affirmative determinations had been made under 
        subsections (a) and (b) of section 805.
  (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 
        805, and
          (2) determinations of the administering authority 
        under subsection (e)(2) shall be treated as 
        determinations made under section 806 or 807, as the 
        case may be.
  (g) Access to Information.--Section 843 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. 809. THIRD COUNTRY SALES.

  (a) Filing of Petition.--Any interested party that would be 
eligible to file a petition under section 802(b)(1) with 
respect to a sale if such sale had been to a United States 
buyer may, with respect to a sale of a vessel by a foreign 
producer in a Shipbuilding Agreement Party to a buyer in a 
third country that is a Shipbuilding Agreement Party, file with 
the Trade Representative a petition alleging that--
          (1) such vessel has been sold at less than fair 
        value; and
          (2) the industry in the United States producing or 
        capable of producing a like vessel is materially 
        injured by reason of such sale.
  (b) Determination.--Upon receipt of a petition under 
subsection (a), the Trade Representative shall request that the 
following determinations be made in accordance with substantive 
and procedural requirements specified by the Trade 
Representative, notwithstanding any other provision of this 
title:
          (1) The administering authority shall determine 
        whether there is reasonable cause to believe that the 
        subject vessel has been sold at less than fair value.
          (2) The Commission shall determine whether there is 
        reasonable cause to believe that the industry in the 
        United States is materially injured by reason of such 
        sale.
  (c) Complaint by Trade Representative.--If the administering 
authority makes an affirmative determination under paragraph 
(1) of subsection (b), and the Commission makes an affirmative 
determination under paragraph (2) of subsection (b), the Trade 
Representative shall make application to the country of the 
buyer of the subject vessel for an injurious pricing action and 
relief similar to that available under section 808. The Trade 
Representative shall advise the petitioner of the proceedings 
undertaken by the third country in response to such application 
and shall permit the petitioner to participate in such 
proceedings to the greatest extent practicable.

                       Subtitle B--Special Rules

SEC. 821. EXPORT PRICE.

  (a) Export Price.--For purposes of this title, 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 of the subject vessel 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.
  (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. 822. NORMAL VALUE.

  (a) Determination.--In determining under this title whether a 
subject vessel has been sold at less than fair value, a fair 
comparison shall be made between the export price and normal 
value of the subject vessel. 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 
                821(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 purposes of 
                subparagraph (A), ``a time reasonably 
                corresponding to the time of the sale'' means 
                within 3 months before or after the sale of the 
                subject vessel or, in the absence of such 
                sales, such longer period as the administering 
                authority determines would be appropriate.
          (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 shall 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) Adjustments for 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--
                  (A) involves the performance of different 
                selling activities, and
                  (B) 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 the 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 861(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 the price is below 
                the cost of production at the time of sale but 
                is above the weighted average cost of 
                production for the period of investigation, 
                such price shall be considered to provide for 
                recovery of costs within 5 years.
          (3) Calculation of cost of production.--For purposes 
        of this section, 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 the production and sale of the 
                foreign like vessel by the producer in 
                question.
        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 expenses 
        incidental to placing the vessel in a condition for 
        delivery to the 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 
        the vessel 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 a foreign like vessel 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,
the administering authority 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 subsection, 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.--
          (1) In general.--For purposes of this title, the 
        constructed value of a subject vessel shall be an 
        amount equal to the sum of--
                  (A) 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, 
                and
                  (B)(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 a foreign like 
                vessel, in the ordinary course of trade, in the 
                domestic market of the country of origin of the 
                subject vessel, or
                  (ii) if actual data are not available with 
                respect to the amounts described in clause (i), 
                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 a foreign like vessel, in the 
                        ordinary course of trade, in the 
                        domestic market, or
                          (III) if data is not available under 
                        subclause (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 of vessel as 
                        the subject vessel in the domestic 
                        market of the country of origin of the 
                        subject vessel.
        The profit shall, for purposes of this paragraph, be 
        based on the average profit realized over a reasonable 
        period of time before and after the sale of the subject 
        vessel and shall reflect a reasonable profit at the 
        time of such sale. For purposes of the preceding 
        sentence, a ``reasonable period of time'' shall not, 
        except where otherwise appropriate, exceed 6 months 
        before, or 6 months after, the sale of the subject 
        vessel. In calculating profit under this paragraph, any 
        distortion which would result in other than a profit 
        which is reasonable at the time of the sale shall be 
        eliminated.
          (2) Costs and profits based on other reasonable 
        methods.--When costs and profits are determined under 
        paragraph (1)(B)(ii)(III), such determination shall, 
        except where otherwise appropriate, be based on 
        appropriate export sales by the producer of the subject 
        vessel or, absent such sales, to export sales by other 
        producers of a foreign like vessel or the same general 
        category of vessel as the subject vessel in the country 
        of origin of the subject vessel.
          (3) Costs of materials.--For purposes of paragraph 
        (1)(A), 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 subject 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. 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 due to extraordinary circumstances 
                not included.--Costs shall not include actual 
                costs which are due to extraordinary 
                circumstances (including, but not limited to, 
                labor disputes, fire, and natural disasters) 
                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 a like vessel 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 subject 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. 823. 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, the 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 of the contract of sale or, where 
appropriate, the date on which the material terms of sale are 
otherwise established. If the material terms of sale are 
significantly changed after such date, 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 due only to fluctuations in the 
exchange rate between the original date of sale and the new 
date of sale.

                         Subtitle C--Procedures

SEC. 841. HEARINGS.

  (a) Upon Request.--The administering authority and the 
Commission shall each hold a hearing in the course of an 
investigation under this title, upon the request of any party 
to the investigation, before making a final determination under 
section 805.
  (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. 842. 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 844,
                  (C) significantly impedes a proceeding under 
                this title, or
                  (D) provides such information but the 
                information cannot be verified as provided in 
                section 844(g),
        the administering authority and the Commission shall, 
        subject to section 844(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 under this title, 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. 843. 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 under this title 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 under this title, 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; non-proprietary submissions.--The 
        administering authority and the Commission shall 
        disclose--
                  (A) any proprietary information received in 
                the course of a proceeding under this title 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) 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 
        made 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 under this title (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 the 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 805(b) may not be disclosed by 
                the administering authority under protective 
                order until either an order is published under 
                section 806(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 before 
                any hearing provided under section 841 is held.
                  (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 803(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 803(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, except 
that 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), and such information shall 
be treated as information described in section 552(b)(3) of 
title 5, United States Code.
  (f) Opportunity for Comment by Vessel Buyers.--The 
administering authority and the Commission shall provide an 
opportunity for buyers 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 the 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 802 whether to 
        initiate an investigation, or the administering 
        authority or the Commission makes a preliminary 
        determination under section 803, a final determination 
        under section 805, a determination under subsection 
        (b), (c), (d), (e)(3)(B)(ii), (g), or (i) of section 
        807, 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,
                          (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, and
                  (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 805 or 
                807(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 the sale of the subject vessel.

SEC. 844. 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 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 803, 805, or 807, 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 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 section 
805 or 807, 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 805.

SEC. 845. ADMINISTRATIVE ACTION FOLLOWING SHIPBUILDING AGREEMENT PANEL 
                    REPORTS.

  (a) Action by United States International Trade Commission.--
           (1) Advisory report.--If a dispute settlement panel 
        under the Shipbuilding Agreement finds in a report that 
        an action by the Commission in connection with a 
        particular proceeding under this title is not in 
        conformity with the obligations of the United States 
        under the Shipbuilding Agreement, the Trade 
        Representative may request the Commission to issue an 
        advisory report on whether this title 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. The Trade Representative shall 
        notify the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the 
        Senate of such request.
          (2) Time limits for report.--The Commission shall 
        transmit its report under paragraph (1) to the Trade 
        Representative within 30 calendar days after the Trade 
        Representative requests the report.
          (3) Consultations on request for commission 
        determination.--If a majority of the Commissioners 
        issues an affirmative report under paragraph (1), the 
        Trade Representatives shall consult with the 
        congressional committees listed in paragraph (1) 
        concerning the matter.
          (4) Commission determination.--Notwithstanding any 
        other provision of this title, if a majority of the 
        Commissioners issues an affirmative report under 
        paragraph (1), the Commission, upon the written request 
        of the Trade Representative, shall 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 Commission shall issue its 
        determination not later than 120 calendar days after 
        the request from the Trade Representative is made.
          (5) Consultations on implementation of commission 
        determination.--The Trade Representative shall consult 
        with the congressional committees listed in paragraph 
        (1) before the Commission's determination under 
        paragraph (4) is implemented.
          (6) Revocation of order.--If, by virtue of the 
        Commission's determination under paragraph (4), an 
        injurious pricing order is no longer supported by an 
        affirmative Commission determination under this title, 
        the Trade Representative may, after consulting with the 
        congressional committees under paragraph (5), direct 
        the administering authority to revoke the injurious 
        pricing order.
  (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 under 
        the Shipbuilding Agreement is issued that contains 
        findings that--
                  (A) an action by the administering authority 
                in a proceeding under this title 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 
                under section 806 should be amended,
                  (C) countermeasures provided for in an order 
                issued under section 807 should be 
                provisionally suspended or reduced pending the 
                final decision of the panel, or
                  (D) the scope or duration of countermeasures 
                imposed under section 807 should be narrowed or 
                shortened,
        the Trade Representative shall consult with the 
        administering authority and the congressional 
        committees listed in subsection (a)(1) on the matter.
          (2) Determination by administering authority.--
        Notwithstanding any other provision of this title, 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, 
        amendment, or suspension under paragraph (2)--
                  (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) Consultations before implementation.--Before the 
        administering authority implements any determination, 
        amendment, or suspension under paragraph (2), the Trade 
        Representative shall consult with the administering 
        authority and the congressional committees listed in 
        subsection (a)(1) with respect to such determination, 
        amendment, or suspension.
          (5) Implementation of determination.--The Trade 
        Representative may, after consulting with the 
        administering authority and the congressional 
        committees under paragraph (4), direct the 
        administering authority to implement, in whole or in 
        part, the determination, amendment, or suspension made 
        under paragraph (2).
          (6) Implementation of determination; notice of 
        implementation.--The administering authority shall 
        implement the determination, amendment, or suspension 
        under paragraph (2)--
                  (A) with respect to a matter described in 
                subparagraph (A) of paragraph (1), only if the 
                injurious pricing margin determined 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, amendment, 
                or suspension under paragraph (2).
        The administering authority shall publish notice of 
        such implementation in the Federal Register.
  (c) Opportunity for Comment by Interested Parties.--Before 
issuing a determination, amendment, or suspension, the 
administering authority, in a matter described in subsection 
(b)(1)(A), or the Commission, in a matter described in 
subsection (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.

                        Subtitle D--Definitions

SEC. 861. DEFINITIONS.

  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 paragraph (16)(E)(iii), may not include an 
        association of 2 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.--Except as used in section 
                808, 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 domestic 
                like vessel includes an entity that is 
                producing the domestic like vessel and an 
                entity with the capability to produce the 
                domestic like vessel.
                  (C) Capability to produce a domestic like 
                vessel.--A producer has the ``capability to 
                produce a domestic 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) In an investigation 
                under this title, 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.--In an investigation under 
                this title, the effect of the sale of the 
                subject vessel shall be assessed in relation to 
                the United States production (or production 
                capability) of a 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 a domestic like vessel has no 
                separate identity in terms of such criteria, 
                then the effect of the sale 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 a 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.
          (6) United states buyer.--The term ``United States 
        buyer'' means a buyer that is any of the following:
                  (A) A United States citizen.
                  (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, privately or government owned, 
                or organized with limited or unlimited 
                liability.
                  (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 50 percent interest, and
                          (ii) the term ``control'' means the 
                        actual ability to have substantial 
                        influence on corporate behavior, and 
                        control is presumed to exist where 
                        there is at least a 25 percent 
                        interest.
                If ownership of a company is established under 
                clause (i), other control is presumed not to 
                exist unless it is otherwise established.
          (7) Ownership interest.--An ``ownership interest'' in 
        a vessel 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--
                  (A) the terms and circumstances of the 
                transaction which conveys the interest,
                  (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.--Except as otherwise 
                specifically provided under international 
                agreements, 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 (including, but not limited to, 
                        ice breakers and dredgers), and
                          (ii) a tug of 365 kilowatts or more,
                that is produced in a Shipbuilding Agreement 
                Party or a country that is not a Shipbuilding 
                Agreement Party and not a WTO member.
                  (B) Exclusions.--The term ``vessel'' does not 
                include--
                          (i) any fishing vessel destined for 
                        the fishing fleet of the country in 
                        which the vessel is built,
                          (ii) any military vessel,
                          (iii) a military reserve vessel, and
                          (iv) any vessel sold before the date 
                        that the Shipbuilding Agreement enters 
                        into force with respect to the United 
                        States, except that any vessel sold 
                        after December 21, 1994, for delivery 
                        more than 5 years after the date of the 
                        contract of sale shall be a ``vessel'' 
                        for purposes of this title unless the 
                        shipbuilder demonstrates to the 
                        administering authority that the 
                        extended delivery date was for normal 
                        commercial reasons and not to avoid 
                        applicability of this title.
                  (C) Self-propelled seagoing vessel.--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) Military vessel.--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) Military reserve vessel.--A ``military 
                reserve vessel'' is a vessel that has been 
                constructed with national defense features and 
                characteristics required by the Secretary of 
                Defense for the purpose of supporting the 
                United States Armed Forces in a contingency.
          (9) Like vessel.--The term ``like vessel'' means a 
        vessel of the same type, same purpose, and approximate 
        size as the subject vessel and possessing 
        characteristics closely resembling those of the subject 
        vessel.
          (10) Domestic like vessel.--The term ``domestic like 
        vessel'' means a like vessel produced in the United 
        States.
          (11) Foreign like vessel.--Except as used in section 
        822(e)(1)(B)(ii)(II), the term ``foreign like vessel'' 
        means a like vessel produced by the foreign 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 under section 
        801, 808, or 809.
          (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 803(a) and 
                805(b), the Commission in each case--
                          (i) shall consider--
                                  (I) the sale of the subject 
                                vessel,
                                  (II) the effect of the sale 
                                of the subject vessel on prices 
                                in the United States for a 
                                domestic like vessel, and
                                  (III) the impact of the sale 
                                of the subject vessel on 
                                domestic producers of the 
                                domestic like vessel, 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 
                805(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) Sale of the subject vessel.--In 
                        evaluating the sale of the subject 
                        vessel, the Commission shall consider 
                        whether the sale, either in absolute 
                        terms or relative to production or 
                        demand in the United States, in terms 
                        of either volume or value, is or has 
                        been significant.
                          (ii) 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 a 
                                domestic like vessel, 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.
                          (iii) Impact on affected domestic 
                        industry.--In examining the impact 
                        required to be considered under 
                        subparagraph (B)(i)(III), 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, 
                                market share, profits, 
                                productivity, return on 
                                investments, and utilization of 
                                capacity,
                                  (II) factors affecting 
                                domestic prices, including with 
                                regard to 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 a 
                                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 the 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 substantially 
                                increased sales of a foreign 
                                like vessel to United States 
                                buyers, taking into account the 
                                availability of other export 
                                markets to absorb any 
                                additional exports,
                                  (II) whether the sale of a 
                                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 sale of a 
                                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 a foreign like 
                                vessel or could be adapted in a 
                                timely manner to produce a 
                                foreign like vessel, 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 a 
                                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 of 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 of 
                                other Shipbuilding Agreement 
                                Parties, or antidumping 
                                determinations of, or measures 
                                imposed by, other countries, 
                                against a like vessel 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 
                        clauses (i) and (ii) of subparagraph 
                        (C), and subject to clause (ii) of this 
                        subparagraph, the Commission shall 
                        cumulatively assess the effects of 
                        sales of foreign like vessels from all 
                        foreign producers with respect to 
                        which--
                                  (I) petitions were filed 
                                under section 802(b) on the 
                                same day,
                                  (II) investigations were 
                                initiated under section 802(a) 
                                on the same day, or
                                  (III) petitions were filed 
                                under section 802(b) and 
                                investigations were initiated 
                                under section 802(a) on the 
                                same day,
                        if, with respect to such vessels, the 
                        foreign producers compete with each 
                        other and with producers of a domestic 
                        like vessel 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 from all 
                countries with respect to which--
                          (i) petitions were filed under 
                        section 802(b) on the same day,
                          (ii) investigations were initiated 
                        under section 802(a) on the same day, 
                        or
                          (iii) petitions were filed under 
                        section 802(b) and investigations were 
                        initiated under section 802(a) on the 
                        same day,
                if, with respect to such vessels, the foreign 
                producers compete with each other and with 
                producers of a domestic like vessel in the 
                United States market.
          (17) Interested party.--The term ``interested party'' 
        means, in a proceeding under this title--
                  (A)(i) the foreign producer, seller (other 
                than the foreign producer), and the United 
                States buyer of the subject vessel, or
                  (ii) a trade or business association a 
                majority of the members of which are the 
                foreign producer, seller, or United States 
                buyer of the subject vessel,
                  (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,
                  (D) a certified union or recognized union or 
                group of workers which is representative of an 
                industry,
                  (E) a trade or business association a 
                majority of whose members are producers in an 
                industry,
                  (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 807, a purchaser 
                who, after the effective date of an order 
                issued under that section, entered into a 
                contract of sale with the foreign producer that 
                is subject to the order.
          (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 the 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 reasonable time before the sale of the 
        subject vessel, have been normal in the shipbuilding 
        industry with respect to a like vessel. 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 
                822(b)(1).
                  (B) Transactions disregarded under section 
                822(f)(2).
          (20) 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 in such 
                country 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) Determinations 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 subtitle A.
          (21) Shipbuilding agreement.--The term ``Shipbuilding 
        Agreement'' means The Agreement Respecting Normal 
        Competitive Conditions in the Commercial Shipbuilding 
        and Repair Industry, resulting from negotiations under 
        the auspices of the Organization for Economic 
        Cooperation and Development, and entered into on 
        December 21, 1994.
          (22) 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.
          (23) WTO agreement.--The term ``WTO Agreement'' means 
        the Agreement defined in section 2(9) of the Uruguay 
        Round Agreements Act.
          (24) 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.
          (25) Trade representative.--The term ``Trade 
        Representative'' means the United States Trade 
        Representative.
          (26) 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.
          (27) Injurious pricing.--The term ``injurious 
        pricing'' refers to the sale of a vessel at less than 
        fair value.
          (28) Injurious pricing margin.--
                  (A) In general.--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 803(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 805(b), the injurious 
                        pricing margin or margins most recently 
                        published by the administering 
                        authority before the closing of the 
                        Commission's administrative record.
          (29) Commercial interest reference rate.--The term 
        ``Commercial Interest Reference Rate'' or ``CIRR'' 
        means an interest rate that the administering authority 
        determines to be consistent with Annex III, and 
        appendices and notes thereto, of the Understanding on 
        Export Credits for Ships, resulting from negotiations 
        under the auspices of the Organization for Economic 
        Cooperation, and entered into on December 21, 1994.
          (30) Antidumping.--
                  (A) WTO members.--In the case of a WTO 
                member, the term ``antidumping'' refers to 
                action taken pursuant to the Agreement on 
                Implementation of Article VI of the General 
                Agreement on Tariffs and Trade 1994.
                  (B) Other cases.--In the case of any country 
                that is not a WTO member, the term 
                ``antidumping'' refers to action taken by the 
                country against the sale of a vessel at less 
                than fair value that is comparable to action 
                described in subparagraph (A).
          (31) Broad multiple bid.--The term ``broad multiple 
        bid'' means a bid in which the proposed buyer extends 
        an invitation to at least all the producers in the 
        industry known by the buyer to be capable of building 
        the subject vessel.
          * * * * * * *
                              ----------                              


                      TITLE 28, UNITED STATES CODE

                    PART IV--JURISDICTION AND VENUE

          * * * * * * *

                CHAPTER 95--COURT OF INTERNATIONAL TRADE

          * * * * * * *

Sec. 1581. Civil actions against the United States and agencies and 
                    officers thereof

  (a)  * * *
          * * * * * * *
  (c) The Court of International Trade shall have exclusive 
jurisdiction of any civil action commenced under section 516A 
or 516B of the Tariff Act of 1930.
          * * * * * * *

                    PART VI--PARTICULAR PROCEEDINGS

          * * * * * * *

          CHAPTER 169--COURT OF INTERNATIONAL TRADE PROCEDURE

          * * * * * * *

Sec. 2643. Relief

  (a)  * * *
          * * * * * * *
  (c)(1) Except as provided in paragraphs (2), (3), (4), [and 
(5)] (5), and (6) of this subsection, the Court of 
International Trade may, in addition to the orders specified in 
subsections (a) and (b) of this section, order any other form 
of relief that is appropriate in a civil action, including, but 
not limited to, declaratory judgments, orders of remand, 
injunctions, and writes of mandamus and prohibition.
          * * * * * * *
  (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 that Act, upon a proper showing that such relief 
is warranted.
          * * * * * * *
                              ----------                              


                       MERCHANT MARINE ACT, 1936

          * * * * * * *

               TITLE V--CONSTRUCTION-DIFFERENTIAL SUBSIDY

          * * * * * * *
  Sec. 511. (a) When used in this section the term ``new 
vessel'' means any vessel (1) documented or agreed with the 
Secretary of Transportation to be documented under the laws of 
the United States; (2) constructed in the United States after 
December 31, 1939, or, if the vessel is a Shipbuilding 
Agreement vessel, constructed in a Shipbuilding Agreement 
Party, but only with regard to moneys deposited, on or after 
the date on which the Shipbuilding Trade Agreement Act takes 
effect, into a construction reserve fund established under 
subsection (b) or the construction of which has been financed 
under title V or VII of this Act, as amended, or the 
construction of which has been aided by a mortgage insured 
under title XI of this Act as amended; and (3) either (A) of 
such type, size, and speed as the Secretary of Transportation 
shall determine to be suitable for use on the high seas or 
Great Lakes in carrying out the purposes of this Act, but not 
of less than two thousand gross tons or of less speed than 
twelve knots, unless the Secretary of Transportation shall 
determine and certify in each case that a vessel of a specified 
lesser tonnage or speed is desirable for use by the United 
States in case of war or national emergency, or (B) constructed 
to replace a vessel or vessels requisitioned or purchased by 
the United States.
          * * * * * * *

                TITLE VI--OPERATING-DIFFERENTIAL SUBSIDY

  Sec. 601. (a) The Secretary of Transportation is authorized 
and directed to consider the application of any citizen of the 
United States for financial aid in the operation of a vessel or 
vessels, which are to be used in an essential service in the 
foreign commerce of the United States or in such service and in 
cruises authorized under section 613 of this title. In this 
title VI the term ``essential service'' means the operation of 
a vessel on a service, route, or line described in section 
211(a) or in bulk cargo carrying service described in section 
211(b). No such application shall be approved by the Secretary 
of Transportation unless he determines that (1) the operation 
of such vessel or vessels in an essential service is required 
to meet foreign-flag competition and to promote the foreign 
commerce of the United States except to the extent such vessels 
are to be operated on cruises authorized under section 613 of 
this title[, 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 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; (2) the applicant owns or leases, or can and 
will build or purchase or lease, a vessel or vessels of the 
size, type, speed, and number, and with the proper equipment 
required to enable him to operate in an essential service, in 
such manner as may be necessary to meet competitive conditions, 
and to promote foreign commerce; (3) the applicant possesses 
the ability, experience, financial resources, and other 
qualifications necessary to enable him to conduct the proposed 
operations of the vessel or vessels as to meet competitive 
conditions and promote foreign commerce; (4) the granting of 
the aid applied for is necessary to place the proposed 
operations of the vessel or vessels on a parity with those of 
foreign competitors, and is reasonably calculated to carry out 
effectively the purposes and policy of this Act. To the extent 
the application covers cruises, as authorized under section 613 
of this title, the Secretary of Transportation may make the 
portion of this last determination relating to parity on the 
basis that any foreign flag cruise from the United States 
competes with any American flag cruise from the United States.
          * * * * * * *
  Sec.  606. Every contract for an operating-differential 
subsidy under this title shall provide (1) that the amount of 
the future payments to the contractor shall be subject to 
review and readjustment from time to time, but not more 
frequently than once a year, at the instance of the Secretary 
of Transportation or of the contractor. If any such 
readjustment cannot be reached by mutual agreement, the 
Secretary of Transportation, on his own motion or on the 
application of the contractor, shall, after a proper hearing, 
determine the facts and make such readjustment in the amount of 
such future payments as he may determine to be fair and 
reasonable and in the public interest. The testimony in every 
such proceeding shall be reduced to writing and filed in the 
office of the Secretary of Transportation. His decision shall 
be based upon and governed by the changes which may have 
occurred since the date of the said contract, with respect to 
the items theretofore considered and on which such contract was 
based, and other conditions affecting shipping, and shall be 
promulgated in a formal order, which shall be accompanied by a 
report in writing in which the Secretary of Transportation 
shall state his findings of fact; (2) that the compensation to 
be paid under it shall be reduced, under such terms and in such 
amounts as the Secretary of Transportation shall determine, for 
any periods in which the vessel or vessels are laid up; (3) 
that if the Secretary of Transportation shall determine that a 
change in an essential service, which is receiving an 
operating-differential subsidy under this title, is necessary 
in the accomplishment of the purposes of this Act, he may make 
such change upon such readjustment of payments to the 
contractor as shall be arrived at by the method prescribed in 
clause (1) of these conditions; (4) that if at any time the 
contractor receiving an operating-differential subsidy claims 
that he cannot maintain and operate his vessels in such an 
essential service, with a reasonable profit upon his 
investment, and applies to the Secretary of Transportation for 
a modification or rescission of his contract to maintain such 
essential service, and the Secretary of Transportation 
determines that such claim is proved, the Secretary of 
Transportation shall modify or rescind such contract and permit 
the contractor to withdraw such vessels from such essential 
service, upon a date fixed by the Secretary of Transportation, 
and upon the date of such withdrawal the further payment of the 
operating-differential subsidy shall cease and the contractor 
be discharged from any further obligation under such contract; 
(5) that the contractor shall conduct his operations with 
respect to essential services, and any services authorized 
under section 613 of this title, covered by his contract in an 
economical and efficient manner; and (6) that whenever 
practicable, an operator who receives subsidy with respect to 
subsistence of officers and crews shall use as such subsistence 
items only articles, materials, and supplies of the growth, 
production, and manufacture of the United States, as defined in 
section 505 herein, except when it is necessary to purchase 
supplies outside the United States to enable such vessel to 
continue and complete her voyage, and an operator who receives 
subsidy with respect to repairs shall perform such repairs 
within any of the United States or the Commonwealth of Puerto 
Rico or, if the vessel is a Shipbuilding Agreement vessel, in a 
Shipbuilding Agreement Party or in the United States, except in 
an emergency.
    Sec. 607. (a) Agreement Rules.
  Any citizen of the United States owning or leasing one or 
more eligible vessels (as defined in subsection (k)(1)) may 
enter into an agreement with the Secretary under, and as 
provided in, this section to establish a capital construction 
fund (hereinafter in this section referred to as the ``fund'') 
with respect to any or all of such vessels. Any agreement 
entered into under this section shall be for the purpose of 
providing replacement vessels, additional vessels, or 
reconstructed vessels, built in the United States or, if the 
vessel is a Shipbuilding Agreement vessel, in a Shipbuilding 
Agreement Party, and documented under the laws of the United 
States for operation in the United States foreign, Great Lakes, 
or noncontiguous domestic trade or in the fisheries of the 
United States and shall provide for the deposit in the fund of 
the amounts agreed upon as necessary or appropriate to provide 
for qualified withdrawals under subsection (f). The deposits in 
the fund, and all withdrawals from the fund, whether qualified 
or nonqualified, shall be subject to such conditions and 
requirements as the Secretary may by regulations prescribe or 
are set forth in such agreement; except that the Secretary may 
not require any person to deposit in the fund for any taxable 
year more than 50 percent of that portion of such person's 
taxable income for such year (computed in the manner provided 
in subsection (b)(1)(A)) which is attributable to the operation 
of the agreement vessels.
          * * * * * * *
    (k) Definitions.
    For purposes of this section--
          (1) The term ``eligible vessel'' means any vessel--
                  [(A) constructed in the United States and, if 
                reconstructed, reconstructed in the United 
                States,]
                  (A)(i) constructed in the United States and, 
                if reconstructed, reconstructed in the United 
                States or in a Shipbuilding Agreement Party, or
                  (ii) that is a Shipbuilding Agreement vessel 
                and is constructed in a Shipbuilding Agreement 
                Party and, if reconstructed, is reconstructed 
                in a Shipbuilding Agreement Party or in the 
                United States,
          * * * * * * *
          (2) The term ``qualified vessel'' means any vessel--
                  [(A) constructed in the United States and, if 
                reconstructed, reconstructed in the United 
                States,]
                  (A)(i) constructed in the United States and, 
                if reconstructed, reconstructed in the United 
                States or in a Shipbuilding Agreement Party, or
                  (ii) that is a Shipbuilding Agreement vessel 
                and is constructed in a Shipbuilding Agreement 
                Party and, if reconstructed, is reconstructed 
                in a Shipbuilding Agreement Party or in the 
                United States, but only with regard to moneys 
                deposited into the fund on or after the date on 
                which the Shipbuilding Trade Agreement Act 
                takes effect,
          * * * * * * *
  Sec. 610. An operating-differential subsidy shall not be paid 
under authority of this title on account of the operation of 
any vessel which does not meet the following requirements: (1) 
The vessel shall be of steel or other acceptable metal, shall 
be propelled by steam or motor, shall be as nearly fireproof as 
practicable, [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,] shall be built in the United States or, if 
the vessel is a Shipbuilding Agreement vessel, in a 
Shipbuilding Agreement Party, and shall be documented under the 
laws of the United States, during the entire life of the 
subsidy contract; and (2) if the vessel shall be constructed 
after the passage of this Act it shall be either a vessel 
constructed according to plans and specifications approved by 
the Secretary of Transportation and the Secretary of the Navy, 
with particular reference to economical conversion into an 
auxiliary naval vessel, or a vessel approved by the Secretary 
of Transportation and the Navy Department as otherwise useful 
to the United States in time of national emergency.
          * * * * * * *

                   TITLE IX--MISCELLANEOUS PROVISIONS

  Sec. 901. (a)  * * *
  (b)(1) Whenever the United States shall procure, contract 
for, or otherwise obtain for its own account, or shall furnish 
to or for the account of any foreign nation without provision 
for reimbursement, any equipment, materials, or commodities, 
within or without the United States, or shall advance funds or 
credits or guarantee the convertibility of foreign currencies 
in connection with the furnishing of such equipment, materials, 
or commodities, the appropriate agency or agencies shall take 
such steps as may be necessary and practicable to assure that 
at least 50 per centum of the gross tonnage of such equipment, 
materials or commodities (computed separately for dry bulk 
carriers, dry cargo liners, and tankers), which may be 
transported on ocean vessels shall be transported on privately 
owned United States-flag commercial vessels, to the extent such 
vessels are available at fair and reasonable rates for United 
States-flag commercial vessels, in such manner as will insure a 
fair and reasonable participation of United States-flag 
commercial vessels in such cargoes by geographical areas: 
Provided, That the provisions of this subsection may be waived 
whenever the Congress by concurrent resolution or otherwise, or 
the President of the United States or the Secretary of Defense 
declares that an emergency exists justifying a temporary waiver 
of the provisions of section 901(b)(1) and so notifies the 
appropriate agency or agencies: And provided further, That the 
provisions of this subsection shall not apply to cargoes 
carried in the vessels of the Panama Canal Company. Nothing 
herein shall repeal or otherwise modify the provisions of 
Public Resolution Numbered 17, Seventy-third Congress (48 Stat. 
500), as amended. [For purposes of this section, the term 
``privately owned United States-flag commercial vessels'' shall 
not be deemed to include any vessel which, subsequent to the 
date of enactment of this amendment, shall have been either (a) 
built outside the United States, (b) rebuilt outside the United 
States, or (c) documented under any foreign registry, until 
such vessel shall have been documented under the laws of the 
United States, for a period of three years: Provided, however, 
That the provisions of this amendment shall not apply where, 
(1) prior to the enactment of this amendment, the owner of a 
vessel, or contractor for the purchase of a vessel, originally 
constructed in the United States and rebuilt abroad or 
contracted to be rebuilt abroad, has notified the Maritime 
Administration in writing of its intent to document such vessel 
under United States registry, and such vessel is so documented 
on its first arrival at a United States port not later than one 
year subsequent to the date of the enactment of this amendment, 
or (2) where prior to the enactment of this amendment, the 
owner of a vessel under United States registry has made a 
contract for the rebuilding abroad of such vessel and has 
notified the Maritime Administration of such contract, and such 
rebuilding is completed and such vessel is thereafter 
documented under United States registry on its first arrival at 
a United States port not later than one year subsequent to the 
date of the enactment of this amendment.] For purposes of this 
section, the term ``privately owned United States-flag 
commercial vessels'' shall be deemed to include--
          (A) any privately owned United States-flag commercial 
        vessel constructed in the United States, and if 
        rebuilt, rebuilt in the United States or in a 
        Shipbuilding Agreement Party on or after the date on 
        which the Shipbuilding Trade Agreement Act takes 
        effect, and
          (B) any privately owned vessel constructed in a 
        Shipbuilding Agreement Party on or after the date on 
        which the Shipbuilding Trade Agreement Act takes 
        effect, and if rebuilt, rebuilt in a Shipbuilding 
        Agreement Party or in the United States, that is 
        documented pursuant to chapter 121 of title 46, United 
        States Code.
The term ``privately owned United States-flag commercial 
vessels'' shall also be deemed to include any cargo vessel that 
so qualified pursuant to section 615 of this Act or this 
paragraph before the date on which the Shipbuilding Trade 
Agreement Act takes effect. 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.
          * * * * * * *
  Sec. 905. When used in this Act--
  (a)  * * *
          * * * * * * *
  (h) The term ``Shipbuilding Agreement'' means the Agreement 
Respecting Normal Competitive Conditions in the Commercial 
Shipbuilding and Repair Industry, which resulted from 
negotiations under the auspices of the Organization for 
Economic Cooperation and Development, and was entered into on 
December 21, 1994.
  (i) 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.
  (j) The term ``Shipbuilding Agreement vessel'' means a vessel 
to which the Secretary determines Article 2.1 of the 
Shipbuilding Agreement applies.
  (k) The term ``Export Credit Understanding'' means the 
Understanding on Export Credits for Ships which resulted from 
negotiations under the auspices of the Organization for 
Economic Cooperation and Development and was entered into on 
December 21, 1994.
  (l) The term ``Export Credit Understanding vessel'' means a 
vessel to which the Secretary determines the Export Credit 
Understanding applies.
          * * * * * * *

               TITLE XI--FEDERAL SHIP MORTGAGE INSURANCE

          * * * * * * *
  Sec. 1104A. (a)  * * *
  (b) Obligations guaranteed under this title--
          (1)  * * *
          * * * * * * *
          [(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 on 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;]
          (5) shall bear interest (exclusive of charges for the 
        guarantee and service charges, if any) at rates not to 
        exceed such percent per annum on 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, except that, with respect to 
        Export Credit Understanding vessels, and Shipbuilding 
        Agreement vessels, the obligations shall bear interest 
        at a rate the Secretary determines to be consistent 
        with obligations of the United States under the Export 
        Credit Understanding or the Shipbuilding Agreement, as 
        the case may be;
          * * * * * * *
  [(i) The Secretary may not, with respect to--
          [(1) the general 75 percent or less limitation in 
        subsection (b)(2);
          [(2) 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
          [(3) 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.]
  (i)(1) Except as provided in paragraph (2), the Secretary may 
not, with respect to--
          (A) the general 75 percent or less limitation 
        contained in subsection (b)(2),
          (B) the 87\1/2\ percent or less limitation contained 
        in the 1st, 2nd, 4th, or 5th proviso to subsection 
        (b)(2) or in 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 and 
Shipbuilding Agreement vessels, the Secretary may establish by 
rule, regulation, or procedure a uniform percentage that the 
Secretary determines to be consistent with obligations of the 
United States under the Export Credit Understanding or the 
Shipbuilding Agreement, as the case may be.
          * * * * * * *
  Sec. 1104B. (a)  * * *
  (b) For the purposes of this section--
          (1) the maximum term for obligations guaranteed under 
        this program may not exceed 25 years;
          (2) obligations guaranteed may not exceed 87\1/2\ 
        percent of the actual cost or depreciated actual cost 
        to the applicant for the construction or reconstruction 
        of the vessel; and
          (3) reconstruction cost obligations may not be 
        guaranteed unless the vessel after reconstruction will 
        have a useful life of at least 15 years.
The Secretary may not by rule, regulation, or procedure 
establish any percentage within the 87\1/2\ percent or less 
limitation in paragraph (2) that is, or is intended to be, 
applied uniformly to all guarantees or commitments to guarantee 
made under this section[.], except that, with respect to Export 
Credit Understanding vessels and Shipbuilding Agreement 
vessels, the Secretary may establish by rule, regulation, or 
procedure a uniform percentage that the Secretary determines to 
be consistent with obligations of the United States under the 
Export Credit Understanding or the Shipbuilding Agreement, as 
the case may be.
          * * * * * * *
                              ----------                              


                     INTERNAL REVENUE CODE OF 1986

                        Subtitle A--Income Taxes

                  CHAPTER 1--NORMAL TAXES AND SURTAXES

          * * * * * * *

 Subchapter N--Tax Based on Income From Sources Within or Without the 
                             United States

          * * * * * * *

          PART II--NONRESIDENT ALIENS AND FOREIGN CORPORATIONS

                Subpart A--Nonresident Alien Individuals

          * * * * * * *

SEC. 872. GROSS INCOME

  (a)  * * *
  (b) Exclusions.--The following items shall not be included in 
gross income of a nonresident alien individual, and shall be 
exempt from taxation under this subtitle:
          (1) Ships operated by certain nonresidents.--[Gross 
        income] Except as provided in section 883(d), gross 
        income derived by an individual resident of a foreign 
        country from the international operation of a ship or 
        ships if such foreign country grants an equivalent 
        exemption to individual residents of the United States.
          * * * * * * *

                    Subpart B--Foreign Corporations

          * * * * * * *

SEC. 883. EXCLUSIONS FROM GROSS INCOME

  (a) Income of Foreign Corporations From Ships and Aircraft.--
The following items shall not be included in gross income of a 
foreign corporation, and shall be exempt from taxation under 
this subtitle:
          (1) Ships operated by certain foreign corporations.--
        [Gross income] Except as provided in subsection (d), 
        gross income derived by a corporation organized in a 
        foreign country from the international operation of a 
        ship or ships if such foreign country grants an 
        equivalent exemption to corporations organized in the 
        United States.
          * * * * * * *
  (d) Penalties for Failure to Disclose Position That Certain 
International Shipping Income Is Not Includible in Gross 
Income.--
          (1) In general.--A taxpayer who, with respect to any 
        tax imposed by this title, takes the position that any 
        of its gross income derived from the international 
        operation of a ship or ships is not includible in gross 
        income by reason of subsection (a)(1) or section 
        872(b)(1) shall be entitled to such treatment only if 
        such position is disclosed (in such manner as the 
        Secretary may prescribe) on the return of tax for such 
        tax (or any statement attached to such return).
          (2) Additional penalties for failing to disclose 
        position.--If a taxpayer fails to meet the requirement 
        of paragraph (1) with respect to any taxable year--
                  (A) the amount of the income from the 
                international operation of a ship or ships--
                          (i) which is from sources without the 
                        United States, and
                          (ii) which is attributable to a fixed 
                        place of business in the United States,
                shall be treated for purposes of this title as 
                effectively connected with the conduct of a 
                trade or business within the United States, and
                  (B) no deductions or credits shall be allowed 
                which are attributable to income from the 
                international operation of a ship or ships.
          (3) Reasonable cause exception.--This subsection 
        shall not apply to a failure to disclose a position if 
        it is shown that such failure is due to reasonable 
        cause and not due to willful neglect.
          * * * * * * *
                 DISSENTING VIEWS OF HON. TILLIE FOWLER

    After carefully reviewing the terms of the OECD Agreement 
as negotiated, I have reached the conclusion that while it is 
not perfect, it is deserving of support.
    During the course of National Security Committee hearings 
that touched on aspects of the Agreement, a number of issues 
were brought up which raised questions for me. These included 
issues related to the date of the Agreement's entry into force, 
the final date for delivery of vessels for which subsidy 
commitments were made prior to entry into force, continuing 
transitional subsidies for certain foreign nations, the 
implications for the Jones Act, the application of the 
Agreement to vessels built for military materiel prepositioning 
programs, and the application of the Agreement to the 
``national defense features'' program.
    Others on the committee were clearly troubled by similar 
concerns. During the course of the committee's mark-up, several 
modifications were proposed to the version of the implementing 
legislation referred to the National Security Committee.
    I found myself in agreement with several of these 
modifications. Those clarifying that the Jones Act would not be 
affected by the bill and that vessels built for military 
materiel prepositioning programs would not fall under the 
Agreement, were, in my judgment, eminently sound and 
meritorious of support. I commend Rep. Bateman, the Chairman of 
the National Security Committee's Merchant Marine Panel, for 
his attention to these issues through his inclusion of them in 
his substitute amendment.
    However, other elements of the substitute amendment were 
troubling to me. First, the substitute contains a unilateral 
extension of the current 25-year terms provided pursuant to the 
Title XI Loan Guarantee Program for an additional 30 months 
beyond the targeted date of entry of force of the Agreement. 
The substitute would similarly extend the deadline date for 
delivery of ships for which subsidy commitments were made prior 
to entry into force. These provisions are not consistent with 
the terms of the Agreement, which require that government 
programs used to finance ship purchases be conformed to a new 
international standard of 12-year financing, and require that 
all ships for which subsidy commitments were made prior to 
entry into force be delivered no later than December 31, 1998. 
While I would support extending this delivery date to make it 
consistent with a three-year period from the date of entry into 
force, I cannot support a unilateral thirty-month extension.
    In addition, there is language in the Committee substitute 
relating to the exemption in the Agreement for military vessels 
and military features installed on otherwise commercial 
vessels. In my judgment it is not sufficiently clear whether 
this language would simply allow for the national defense 
features of a given vessel to be exempt from the terms of the 
Agreement, which is consistent with the Agreement's provisions, 
or whether it would allow the entire vessel to be exempt from 
the Agreement, which would be a violation of the Agreement. In 
my judgment, this section needs clarification.
    It is my concern that, if enacted, some of the substitute's 
provisions would signal to the other parties that the United 
States is not serious about the achievement of a new 
shipbuilding agreement. There is no evidence to suggest that 
unilateral U.S. action to continue 25-year financing 
arrangements under the Title XI program--while other nations 
would be prohibited from providing similar financing--would be 
acceptable to the other parties to the Agreement. Likewise, it 
is not credible to this Member that other parties to the 
Agreement would agree to an exclusively U.S. exemption from the 
Agreement for any vessel on which a military feature was 
installed. To the contrary, it appears to me that such 
unilateral efforts to significantly change the Agreement would 
cause the other parties to withdraw from the Agreement, thereby 
terminating the prospects for an international agreement on 
shipbuilding.
    Finally, I would like to note for the record that neither 
the Agreement as negotiated nor the substitute amendment 
terminates the Title XI Loan Guarantee Program, as a number of 
Members suggested during the mark-up. Rather, the Agreement 
requires that the terms of the Title XI program be brought into 
compliance with a new international standard. The Agreement in 
no way affects the funding for the Title XI program; rather, it 
permits current or even increased levels of annual 
appropriations for the Title XI program indefinitely. Changes 
to the current terms of the Title XI program required by the 
Agreement would revert back to original law should the 
Agreement no longer have force and effect with respect to the 
U.S. In short, any future decision by the United States to 
withdraw from the Agreement would reinstate the current terms 
of the Title XI program.
                                                  Tillie K. Fowler.

                                
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