[Senate Report 105-84]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 178
105th Congress                                                   Report
                                 SENATE

 1st Session                                                     105-84
_______________________________________________________________________


 
                    OECD SHIPBUILDING AGREEMENT ACT

                                _______
                                

               September 24, 1997.--Ordered to be printed

_______________________________________________________________________


    Mr. Roth, from the Committee on Finance, submitted the following

                              R E P O R T

                         [To accompany S. 1216]

      [Including cost estimate of the Congressional Budget Office]

     The Committee on Finance having considered legislation to 
approve and implement the Agreement Respecting Normal 
Competitive Conditions in the Commercial Shipbuilding and 
Repair Industry, resulting from negotiations conducted under 
the auspices of the Organization for Economic Cooperation and 
Development, reports favorably thereon and refers the bill to 
the full Senate with a recommendation that the bill do pass.

                             I. Background

     On June 8, 1989, the Shipbuilders Council of America 
(SCA), representing the U.S. shipbuilding industry, filed a 
petition under section 301 of the Trade Act of 1974, which 
alleged that foreign government subsidies to the shipbuilding 
industry constituted an unjustifiable, unreasonable, or 
discriminatory trade practice that burdens or restricts U.S. 
commerce. The SCA withdrew the petition on July 21, 1989, 
following a commitment by the U.S. Government to initiate 
negotiations on an agreement to discipline government support 
to the shipbuilding and repair industry within the framework of 
the Working Party on Shipbuilding of the Council of the 
Organization for Economic Cooperation and Development 
(``OECD''). These negotiations commenced on October 24, 1989, 
when the United States notified the Executive Committee of the 
OECD of its intention to negotiate such an agreement.
     After more than five years of negotiation, the Agreement 
Respecting the Normal Competitive Conditions in the Commercial 
Shipbuilding and Repair Industry (the ``Shipbuilding 
Agreement'') was signed on December 21, 1994, by the Commission 
of the European Communities, and the Governments of Finland, 
Japan, the Republic of Korea, Norway, Sweden, and the United 
States. Together, the signatories account for approximately 80 
percent of global shipbuilding capacity.
     The Shipbuilding Agreement applies only to the 
construction and repair of self-propelled, seagoing commercial 
vessels of 100 gross tons and above (including certain 
specialized vessels) and tugs of 365 kilowatts or more. It does 
not cover the construction of naval vessels or the outfit and 
repair of vessels for military purposes.
     The Shipbuilding Agreement has four general sections. 
First, with some limited exceptions, the Shipbuilding Agreement 
requires the elimination of virtually all subsidies to the 
shipbuilding industry granted either directly to shipbuilders 
or indirectly through ship operators or other entities. Second, 
to avoid trade-distorting financing programs, the Shipbuilding 
Agreement also establishes common rules to discipline 
government financing for export and domestic ship sales. Third, 
the Shipbuilding Agreement includes an ``injurious-pricing 
code,'' modeled on the antidumping rules of the World Trade 
Organization (WTO), which would allow signatories to assess an 
offsetting injurious-pricing charge against foreign 
shipbuilders who sell ships at unfairly low (i.e., dumped) 
prices that injure domestic shipbuilders. The injurious-pricing 
code also permits signatories to impose specified 
countermeasures against a foreign shipbuilder that is subject 
to an affirmative injurious-pricing determination, if the 
shipbuilder does not pay the injurious-pricing charge. Finally, 
the Shipbuilding Agreement includes binding rules for dispute 
settlement in the OECD, which are patterned after the WTO's 
dispute-settlement regime.
     The Shipbuilding Agreement is scheduled to enter into 
force 30 days after all signatories deposit instruments of 
ratification, acceptance, or approval with the OECD 
Secretariat. In order for the United States to complete its 
ratification, legislation must be enacted by Congress to bring 
U.S. law into compliance with the Shipbuilding Agreement.
     The Shipbuilding Agreement had an initial target date for 
entry into force of January 1, 1996. At the meeting of the OECD 
Council Working Party on Shipbuilding on December 11, 1995, 
representatives of Korea, Norway, and the European Union (which 
now includes Finland and Sweden) deposited their respective 
instruments of ratification with the OECD Secretariat. At the 
same time, participants acknowledged that it would not be 
possible for either the United States or Japan to complete 
their ratification procedures in time to meet the original 
target effective date of January 1, 1996. Accordingly, 
representatives of the signatories agreed to extend the 
deadline and set a new target date of June 15, 1996, for 
depositing instruments of ratification, thereby permitting the 
Shipbuilding Agreement to enter into force by July 15, 1996.
     On June 14, 1996, representatives of Japan deposited that 
country's instrument of ratification with the OECD Secretariat. 
Efforts in the 104th Congress to approve the implementing 
legislation that would allow U.S. ratification of the 
Shipbuilding Agreement were unsuccessful. Nonetheless, a so-
called ``standstill'' provision in the Shipbuilding Agreement 
(which prohibits the signatory countries from creating new or 
expanding existing shipbuilding subsidy programs) remains in 
force until the Shipbuilding Agreement comes into effect upon 
completion of its ratification by all signatory countries. The 
Committee is concerned that the future of the Shipbuilding 
Agreement is in jeopardy as the Council of the European Union 
is scheduled to consider a proposed package of shipyard 
subsidies in Spain, Germany, and Greece worth $2.1 billion by 
the end of September 1997.

                        II. Summary of the Bill

     The Shipbuilding Agreement establishes a mechanism for the 
determination of injurious pricing in the construction and sale 
of seagoing vessels, in a manner analogous to the provisions in 
the Agreement on Implementation of Article VI of the General 
Agreement on Tariffs and Trade 1994 (``WTO Antidumping 
Agreement''). In addition, the Shipbuilding Agreement provides 
for the assessment of an injurious-pricing charge and 
countermeasures where appropriate--remedies that are different 
from the antidumping provisions under Title VII of the Tariff 
Act of 1930, as amended (``Title VII''), which implements the 
WTO Antidumping Agreement in U.S. law. Because ocean-going 
vessels engaged in international trade are technically not 
imported or entered for consumption in the United States, it is 
not possible to use the antidumping remedies of Title VII to 
cover the sale of vessels at less than fair value. Accordingly, 
separate statutory authority is required to implement the 
Shipbuilding Agreement.

1. Injurious Pricing and Countermeasures

    Section 102 of the bill would establish a new Title VIII of 
the Tariff Act of 1930, as amended, in order to create an 
injurious-pricing mechanism applicable to shipbuilding. This 
mechanism would permit the collection of an injurious-pricing 
charge against ocean-going vessels sold to U.S. buyers at a 
price below normal value when that sale injures a U.S. 
shipbuilding industry. This mechanism also allows for the 
imposition of countermeasures against a shipyard that fails to 
pay the injurious-pricing charge.
     The new Title VIII would be analogous to the current 
antidumping provisions of Title VII, which set forth procedures 
under U.S. law for assessment of antidumping duties. The 
specific injurious-pricing provisions differ from the 
antidumping provisions in Title VII only where necessary to 
take into account differences between the Shipbuilding 
Agreement and the WTO Antidumping Agreement due to the unique 
characteristics of the construction and sale of ocean-going 
vessels.
     The new Title VIII would also provide for judicial review 
of injurious pricing and countermeasures determinations in the 
U.S. Court of International Trade, with subsequent appellate 
review in the U.S. Court of Appeals for the Federal Circuit.

2. Other Provisions

    The bill also includes the following changes or additions 
to current law:
   Repairs made in a signatory to the Shipbuilding 
        Agreement on U.S.-flagged vessels of a type covered by 
        the Shipbuilding Agreement and on integrated tug-barges 
        would be exempt from the 50 percent duty imposed under 
        section 466 of the Tariff Act of 1930 on the cost of 
        repairs made outside the United States on a U.S.-
        flagged vessel.
   The requirements of certain tax and subsidy programs 
        available under the Merchant Marine Act, 1936 to 
        vessels constructed in the United States, as well as 
        government guarantees available under Title XI of the 
        Merchant Marine Act for financing the construction, 
        reconstruction or reconditioning of U.S. built vessels, 
        are changed to conform to the requirements of the 
        Shipbuilding Agreement and the related OECD 
        Understanding on Export Credits for Ships. Changes to 
        Title XI will not take effect until January 1, 2000.
   Private persons other than the U.S. Government are 
        prohibited from asserting any cause of action or 
        defense under the Shipbuilding Agreement in U.S. 
        courts.
   The President would be required to commence U.S. 
        withdrawal from the Shipbuilding Agreement when one or 
        more Shipbuilding Agreement Parties, accounting for a 
        specified tonnage of construction of vessels covered by 
        the Shipbuilding Agreement, withdraws from the 
        Agreement.
   Procedures for withdrawing Congressional approval of 
        the Shipbuilding Agreement when a Shipbuilding 
        Agreement Party undertakes responsive measures pursuant 
        to a determination that the Jones Act \1\ has 
        significantly undermined the balance of rights and 
        obligations under the Shipbuilding Agreement.
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    \1\ The Merchant Marine Act, 1920 (46 App. U.S.C. 861 et seq.), the 
Act of June 19, 1886 (46 App. U.S.C. 289), or any other provision of 
law set forth in Accompanying Note 2 to Annex II of the Shipbuilding 
Agreement.
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                        III. General Description

                Short Title; Purposes; Table of Contents

                              (Section 1)

     Section 1 provides that the title may be cited as the 
``OECD Shipbuilding Trade Agreement Act.'' Section 1 also lists 
three purposes of the Act:
   To enhance the competitiveness of U.S. shipbuilders 
        which has been diminished as a result of foreign 
        subsidies and predatory pricing practices.
   To ensure that U.S. ownership, manning, registry, 
        and construction requirements for coastwise trade 
        vessels, which have provided the Department of Defense 
        with mariners and assets in times of national 
        emergency, cannot be compromised by the Shipbuilding 
        Agreement.
   To strengthen the U.S. shipbuilding industrial base 
        to ensure that its full capabilities are available in 
        time of national emergency.

 1. TITLE I--APPROVAL AND IMPLEMENTATION OF OECD SHIPBUILDING AGREEMENT

                   a. Subtitle A--General Provisions

                 Approval of the Shipbuilding Agreement

                             (Section 101)

     Section 101 provides that the Congress approves the 
Shipbuilding Agreement, which resulted from negotiations 
conducted under the auspices of the OECD and which was entered 
into on December 21, 1994.

     Injurious Pricing and Countermeasures Relating to Shipbuilding

                             (Section 102)

     Section 102 adds a new Title VIII to the Tariff Act of 
1930. Title VIII contains four subtitles, described section-by-
section below. Because Title VIII is modeled on the antidumping 
statute in Title VII, this description outlines only the 
differences between the two titles.

        SUBTITLE A--INJURIOUS PRICING CHARGE AND COUNTERMEASURES

                 Section 801: Injurious Pricing Charge

     Section 801 would require the imposition of a one-time 
injurious-pricing charge against a foreign shipbuilder if the 
Department of Commerce (Commerce) determines that a vessel 
produced by that shipbuilder has been sold directly or 
indirectly to a U.S. buyer at less than its fair value and the 
International Trade Commission (ITC) determines that an 
industry in the United States is or has been materially injured 
or threatened with material injury, or the establishment of an 
industry in the United States is or has been materially 
retarded by reason of the sale of that vessel. The amount of 
the injurious-pricing charge would be the amount by which 
normal value exceeds the export price. The injurious-pricing 
charge would be assessed once for the sale in question. After 
the charge is paid, there would be no continuing liability on 
future sales or scrutiny of sales of other vessels produced by 
the foreign shipbuilder unless a separate investigation is 
conducted with respect to each of those sales.
     Section 801 is modeled on and analogous to section 731 of 
Title VII. However, Title VIII contains several changes, which 
are required to take into account the unique characteristics of 
the shipbuilding industry and the requirements of the 
Shipbuilding Agreement. Specifically, because ocean-going 
vessels engaged in international trade are technically not 
imported or entered for consumption in the United States, the 
Shipbuilding Agreement and Title VIII would permit 
investigations to be commenced when a vessel is sold directly 
or indirectly to a U.S. buyer, regardless of whether the vessel 
is imported or entered for consumption in the United States.
     Thus, the traditional antidumping mechanism of imposing an 
antidumping duty on future entries of imported merchandise 
would not provide a domestic shipbuilding industry with 
effective relief. Accordingly, the Shipbuilding Agreement and 
Title VIII would establish a one-time charge to be assessed 
against the shipyard producing the injuriously-priced vessel.
     Finally, the Shipbuilding Agreement provides that there 
must be a demonstration that there is or has been material 
injury by reason of the sale of the vessel or vessels in 
question. In contrast, the WTO Antidumping Agreement provides 
that there must be a demonstration that there is material 
injury by reason of imports. Accordingly, section 801 reflects 
the difference by requiring the ITC to determine whether there 
is or has been material injury by reason of the sale of the 
injuriously-priced vessel.
     Accordingly, the Committee intends that the material 
injury standards of Title VII and Title VIII be interpreted 
differently consistent with the particular nature of the 
material-injury inquiry under the two titles.

     Section 802: Procedures For Instituting An Injurious-Pricing 
                             Investigation

     Section 802 sets forth the procedures for conducting an 
injurious-pricing investigation. Section 802(a) describes 
procedures for initiation by Commerce and provides that an 
investigation may be self-initiated only within six months 
after the time that Commerce first knew or should have known of 
the sale of the vessel. Section 802(b) describes the procedures 
for initiation by petition. These procedures require that a 
petition be filed within either six or nine months (depending 
upon the circumstances) from the time the petitioner knew or 
should have known of the sale of the vessel, but no later than 
six months after the delivery of the vessel. If these deadlines 
are not met, an investigation may not be commenced.
     Section 802(b)(1)(B)(i) provides that if a petitioner is a 
producer, it must show that it had the capability to produce 
the subject vessel. In addition, if the sale of the subject 
vessel was made through a bidding process that was either a 
broad multiple bid or on which the producer was invited to bid, 
the petitioner must show that it made a timely effort to obtain 
the sale through a proposal that met bid specifications. If the 
sale was not made through a broad multiple bid and the 
petitioner was not invited to bid, but knew or should have 
known of the proposed purchase of the vessel in question, the 
petitioner must show it made timely efforts to conclude a sale 
consistent with the buyer's requirements.
     In some instances, a petitioner may be capable of 
producing the vessel in question, but was not invited to 
participate in a bid because the buyer claims that it did not 
know that the petitioner was capable of producing a vessel to 
specification. In determining standing pursuant to section 
802(b)(1)(B)(i)(I), the Committee does not intend that the 
Commerce Department narrowly construe the definition of ``broad 
multiple bid'' in section 861(31) to require that the buyer 
have actual knowledge of the petitioner's capability to produce 
the required vessel. Rather, the Commerce Department should 
examine whether the buyer extended invitations to at least all 
those producers that the buyer knew or reasonably should have 
known were capable of producing the required vessel. In 
considering this question, the Commerce Department should 
consult with the Maritime Administration. The Commerce 
Department should also consider whether the petitioner may 
still have standing pursuant to section 802(b)(1)(B)(i)(III).
     Section 802(d)(1) provides a 45-day deadline, with no 
extension, for initiating an investigation after the filing of 
a petition, assuming that the petition meets the requirements 
set forth. Among these requirements, section 802(d)(4) sets 
forth certain requirements for petitioners, including the 
requirement that a petitioner must file ``on behalf of'' a 
domestic industry. Under this requirement, there must be 
sufficient industry support for the petition. Support is deemed 
to be sufficient when the following criteria are met:
   domestic producers or workers who support the 
        petition must account for at least 25 percent of the 
        total capacity of domestic producers capable of 
        producing the like vessel; and
   domestic producers or workers who support the 
        petition must account for more than 50 percent of the 
        total capacity to produce the like vessel of that 
        portion of the industry expressing a view on the 
        petition.
     Section 802(d)(6) provides that Commerce may not initiate 
an injurious-pricing investigation if a third country that is a 
WTO member, but not a party to the Shipbuilding Agreement, has 
initiated an antidumping proceeding against the same vessel 
that has been pending for not more than a year, or that has 
been completed and resulted in the imposition of antidumping 
measures or a negative determination.
     The procedures for initiating an injurious-pricing 
investigation under Title VIII differ in a number of respects 
from procedures for initiating an antidumping investigation 
under Title VII. Because most injurious-pricing investigations 
will involve only one ship, it was deemed appropriate to 
establish deadlines in the Shipbuilding Agreement for the 
filing of petitions and for self-initiation of an investigation 
with respect to that ship. Such deadlines are not needed in an 
antidumping investigation under Title VII, in which all entries 
of the subject imports during a specified period (generally 12 
months for Commerce and 3 years for the ITC) are subject to 
investigation.
     In addition, because vessels are generally unique and 
often made to individual specifications, a domestic producer 
may not have produced a vessel actually identical to the 
subject vessel. Nonetheless, the domestic producer could still 
be injured as a result of the sale because that producer was 
capable of producing the subject vessel. By contrast, Title VII 
investigations require that the petitioner, if a producer, 
actually produce or manufacture the like product (except in the 
context of a determination whether the establishment of a 
domestic industry is materially retarded by reason of dumped 
imports). Moreover, the petitioner under Title VII is not 
required to show that it made an effort to sell like 
merchandise to the purchaser.
     Title VIII provides for a 45-day period for determining 
whether to initiate an injurious-pricing investigation, as 
opposed to 20 days with a possible extension to 40 days in an 
antidumping case under section 732(c)(1) of Title VII, because 
of the Administration's concern that the new representation 
requirements and deadlines for filing petitions under Title 
VIII may create additional complexities requiring more time to 
determine the sufficiency of the petition.
     Finally, Title VII does not provide for the delay or 
termination of an antidumping investigation if another WTO 
member undertakes antidumping or other measures against like 
merchandise from the subject country. Under Title VIII, 
however, a U.S. producer could seek to bring an injurious-
pricing action against a vessel that is also subject to an 
antidumping action in a WTO member country that is not a party 
to the Shipbuilding Agreement. In this situation, the 
Shipbuilding Agreement and Title VIII would require that the 
injurious-pricing action not be initiated in certain 
circumstances.

                Section 803: Preliminary Investigations

     Section 803(a) would require the ITC to make its 
preliminary determination within 90 days after the filing of 
the injurious-pricing petition.
     Section 803(b) states that Commerce is to make its 
preliminary determination within 160 days after initiating its 
investigation or 160 days after the date of delivery of the 
vessel in a cost or constructed-value investigation. An 
extension is permitted in extraordinarily complicated cases or 
for good cause until not later than 190 days after initiation 
or date of delivery, as the case may be.
     These time periods for preliminary determinations in Title 
VIII cases are generally longer than in antidumping 
investigations under Title VII. This difference is related to 
the different nature of the investigations under the two 
titles. Due to the unique nature of the construction of 
vessels, a Title VIII cost investigation must be delayed until 
construction is completed to allow Commerce to obtain actual 
cost information. Tying Commerce's investigation to the date of 
the vessel's delivery may result in a delay of the 
investigation for several years due to the length of time 
necessary to construct a vessel.
     Because the remedies established under Title VII and Title 
VIII are completely different, the effect of a preliminary 
affirmative Commerce determination would be different as well. 
Title VII provides for provisional relief in the form of the 
posting of a bond or cash deposit by the importer in the amount 
of the preliminary dumping margin and the collection of duties 
on entries of the subject merchandise after an affirmative 
preliminary determination has been rendered. Under Title VIII, 
however, no provisional relief after the preliminary 
investigation is necessary because the remedy consists entirely 
of a one-time charge, imposed on the shipbuilder after a final 
determination has been made.

         Section 804: Termination or Suspension of Investigation

     Section 804(d) provides for the suspension of an 
injurious-pricing investigation if a third country that is a 
WTO member, but not a party to the Shipbuilding Agreement, 
initiates an antidumping proceeding with respect to the same 
vessel. The investigation would be terminated if the third 
country proceeding results in the imposition of antidumping 
measures or a negative determination. If the third-country 
proceeding ends without the imposition of antidumping measures 
or a negative determination, or if it is not concluded within 
one year (unless antidumping measures are subsequently 
imposed), the suspension would end and the Title VIII 
investigation would proceed.
     This rule under 804(d) contrasts with Title VII, which 
does not allow for the suspension or termination of an 
investigation based on action by a third country. However, the 
Shipbuilding Agreement contemplates the situation where, for 
example, a U.S. producer seeks to bring a Title VIII action 
against a vessel that has been sold to a buyer in the United 
States and is also subject to an antidumping investigation by a 
WTO Member country that is not a party to the Shipbuilding 
Agreement. The rule in the Shipbuilding Agreement and Title 
VIII would require that the injurious-pricing investigation be 
terminated or suspended in such situations to avoid multiple 
investigations of the subject vessel.

                    Section 805: Final Determinations

     Section 805(a) provides that Commerce would be required to 
make its final determination in an injurious-pricing 
investigation under Title VIII not later than 75 days after its 
preliminary determination. This period may be extended under 
certain circumstances to 290 days after initiation of the 
investigation in ordinary cases or after delivery of the vessel 
in cost or constructed-value investigations.
     Section 805(b) provides that the ITC would be required to 
make its final determination before the later of the l20th day 
on which Commerce makes an affirmative preliminary 
determination or the 45th day after the day on which Commerce 
makes an affirmative final determination.
     The extension for completion of Commerce's injurious-
pricing investigation is longer under Title VIII than is 
provided for under section 735 of Title VII in an antidumping 
investigation. This difference between the two titles is 
related to the different nature of the investigations and the 
substantial delays that may be caused by use of actual cost 
data with respect to the construction of ships.

   Section 806: Imposition And Collection Of Injurious Pricing Charge

     In the event of final affirmative determinations by 
Commerce and the ITC under Title VIII, Commerce would be 
required to publish an order imposing a one-time injurious-
pricing charge on the foreign shipbuilder in an amount equal to 
the injurious pricing margin for the vessel subject to 
investigation. The shipbuilder must pay the charge within 180 
days. However, the payment period may be extended under 
extraordinary circumstances, subject to interest charges. Once 
the injurious-pricing charge is paid, the shipbuilder would not 
be subject to any continuing liability on the vessel in 
question or on future sales or scrutiny of sales of other 
vessels constructed by that shipbuilder unless a new 
investigation under Title VIII is conducted with respect to 
each of those future sales.
     This injurious-pricing remedy under the Shipbuilding 
Agreement and Title VIII is different than the antidumping 
remedy under Title VII because of the differences between the 
sale of imported merchandise and the nature of sales 
transactions involving ships. Because vessels engaged in 
international trade do not enter the United States for 
consumption, the traditional antidumping mechanism of imposing 
an antidumping duty on future entries would not provide the 
domestic industry with effective relief. Accordingly, the 
Shipbuilding Agreement and Title VIII would establish a one-
time charge to be assessed against the shipyard producing the 
injuriously-priced vessel. Because the remedy would be a one-
time charge, there is no need for an administrative or sunset 
review of the order as provided for under section 751 with 
respect to antidumping orders under Title VII.

               Section 807: Imposition of Countermeasures

     Section 807 provides that failure to pay the injurious-
pricing charge imposed against a foreign shipbuilder subjects 
that shipbuilder to the imposition of countermeasures. The 
countermeasures would take the form of a temporary denial (for 
a period of up to four years after delivery of the vessel 
subject to countermeasures) of privileges to load or unload 
cargo or passengers in the United States to vessels contracted 
to be built by the offending shipbuilder within a period of up 
to four years after the effective date of the countermeasures.
     Sections 807(b) and (c) set forth the procedures for 
establishing countermeasures. Specifically, section 807(b) 
would require Commerce to publish a notice of an intent to 
impose countermeasures not later than 30 days before the 
expiration of the time for payment of the injurious-pricing 
charge. Under section 807(c), Commerce would be required to 
issue a determination and order imposing countermeasures within 
90 days after the notice of intent is published. In issuing 
this order, Commerce would be required to determine whether an 
interested party has demonstrated that the scope or duration of 
the countermeasures should be narrower or shorter than that set 
forth in the notice of intent.
     Section 807(d) provides that if countermeasures are 
imposed, they may be reviewed annually as to scope and 
duration.
     Section 807(e) provides that countermeasures may be 
extended in scope and duration beyond four years only if a 
panel established under the Shipbuilding Agreement agrees that 
such extension is appropriate.
     Finally, section 807(f) would require Commerce to publish 
each year a list of all vessels subject to countermeasures and 
to provide notice of the imposition of countermeasures to 
certain interested parties.
     The countermeasures procedure under Title VIII is 
essentially an enforcement mechanism. Neither Title VII nor the 
WTO Antidumping Agreement provide for the imposition of 
countermeasures. However, an injurious-pricing order under 
Title VIII would not apply to future vessels delivered by the 
shipyard in question. Therefore, the United States would have 
no recourse in enforcing the order if the shipyard refused to 
pay the injurious-pricing charge. Accordingly, it is necessary 
to establish a mechanism to ensure that a shipyard is unable to 
avoid the remedial effect of an order simply by not paying the 
injurious-pricing charge, and Title VIII and the Shipbuilding 
Agreement establish the countermeasures procedure as the 
enforcement mechanism.
     The Committee notes that under section 861(17)(G) of Title 
VIII, purchasers of vessels potentially subject to 
countermeasures have standing to participate fully in 
proceedings concerning the imposition of countermeasures. The 
Committee expects that the interests of such purchasers, as 
well as other interested parties (such as domestic producers, 
respondents, workers, and relevant trade or business 
associations) be taken into account in making countermeasure 
determinations.
     The Committee also notes that the countermeasures would 
apply to vessels contracted to be built by the offending 
foreign producer after the date of the order imposing 
countermeasures. Specifically, a vessel would be covered if the 
material terms of sale for that vessel are established within a 
period of four consecutive years beginning 30 days after the 
notice of intent is published. The Committee expects that 
purchasers will be given ample notice as to vessels that may be 
potentially covered by the countermeasure order and wishes to 
avoid situations in which purchasers would not have sufficient 
notice that changes in contract terms could subject the vessel 
to countermeasures.
     Accordingly, the Committee intends that only significant 
changes in the material terms of a legitimate contract entered 
into before the effective date of the countermeasures order 
should push the sale into the period covered by countermeasures 
if those changes were made after the order's effective date. 
Such significant changes amount to more than, for example, 
merely changing the delivery date because of construction 
delays, changing vessel specifications in a manner that does 
not affect the overall nature of the vessel subject to the 
contract, or other minor changes in price or terms. Of course, 
the Committee also intends that a vessel would be included in 
the countermeasure order if a sham contract were established 
covering the vessel before the effective countermeasure date 
simply to avoid imposition of countermeasures.

       Section 808: Injurious Pricing Petitions By Third Countries

     Section 808 provides that the government of a party to the 
Shipbuilding Agreement may file a petition with the U.S. Trade 
Representative (USTR) that requests an investigation to 
determine whether a vessel from another Shipbuilding Agreement 
Party has been sold directly or indirectly to one or more U.S. 
buyers at less than its normal value and that an industry in 
the petitioning country is materially injured by reason of the 
sale. After consulting with Commerce and the ITC, USTR would be 
required to determine whether to initiate an investigation. 
However, USTR would be able to proceed to initiate the 
investigation only after obtaining the approval of the Parties 
Group under the Shipbuilding Agreement.
     The procedure in section 808 to allow third countries to 
file injurious-pricing petitions is in accordance with the 
requirements of the Shipbuilding Agreement and is intended to 
provide an opportunity to conduct an investigation to determine 
whether injury by reason of an injuriously-priced sale is 
experienced in another Shipbuilding Agreement Party. Section 
808 is comparable to the procedure under Title VII, section 
783, which allows the government of a WTO party to file a 
petition with USTR requesting the initiation of an antidumping 
investigation to determine whether there is material injury to 
an industry in the petitioning country by reason of dumped 
imports entered for consumption in the United States.

              Section 809: Third Country Injurious Pricing

     Section 809 addresses concerns over the effects on the 
U.S. industry resulting from the injurious pricing of vessels 
sold to buyers in Shipbuilding Agreement parties other than the 
United States. The section establishes procedures analogous to 
section 1317 of the Omnibus Trade and Competitiveness Act of 
1988 (19 U.S.C. 1677k) regarding third-country dumping. These 
procedures permit the domestic industry to petition the U.S. 
Trade Representative if the industry has reason to believe that 
a vessel has been sold in another party to the Shipbuilding 
Agreement at less than fair value and such sale is injuring the 
U.S. domestic industry.
     If USTR determines that there is a reasonable basis for 
the allegations in the petition, USTR shall submit an 
application to the appropriate authority of the Shipbuilding 
Agreement Party requesting that an injurious-pricing action be 
taken on behalf of the United States under the laws of that 
country with respect to the sale of the vessel in question. At 
the request of USTR, the appropriate officers of the Commerce 
Department and the ITC are to assist USTR in preparing any such 
application.
     After submitting the application to the appropriate 
authorities of the Shipbuilding Agreement Party, USTR must seek 
consultations with such authorities regarding the requested 
action. The Committee understands that the Shipbuilding 
Agreement Party would be able to proceed to initiate an 
investigation requested by the United States only after 
obtaining the approval of the Parties Group under the 
Shipbuilding Agreement. If the government of the Shipbuilding 
Agreement Party refuses to take any injurious-pricing action, 
USTR must consult with the domestic industry regarding further 
action under any other U.S. law as appropriate.

                       SUBTITLE B--SPECIAL RULES

                        Section 821: Export Price

     Section 821 sets forth the rules for determining the 
export price to be used in injurious-pricing investigations. 
``Export price'' is defined as 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 U.S. buyer. Such a sale would include any transfer 
in ownership interest, including by lease or long-term bareboat 
charter, in conjunction with the original transfer from the 
producer, either directly or indirectly, to a U.S. buyer. 
Section 821(b) sets forth the adjustments to be made to export 
price.
     The definition of export price under section 821 is 
similar to the definition in Title VII (section 772). However, 
Title VII also contains a definition of the concept 
``constructed export price.'' Because of the unique manner in 
which vessels are sold, there is no need for a constructed 
export price concept in the context of an injurious-pricing 
determination under Title VIII.

                        Section 822: Normal Value

     Section 822(a)(1) provides that the normal value of the 
subject vessel is the price of a like vessel in the home 
market, as adjusted, if sold at a time reasonably corresponding 
to the time of the sale under investigation. Section 
822(a)(1)(D) defines such contemporaneous sales as being within 
three months before or after the sale of the subject vessel or, 
in the absence of such sales, such longer period as Commerce 
determines would be appropriate. If home-market sales are not 
available, Commerce would be required to determine normal value 
based on the price of a like vessel in third-country sales. 
Only if such sales are inappropriate could Commerce use 
constructed value to determine normal value.
     Section 822(e) provides that in constructed-value 
situations, normal value would be derived on the basis of a 
statutory formula, which is the sum of the costs of production, 
plus the actual amount of profit and selling, administrative, 
and general expenses (where actual data are available). If 
constructed value is used, section 803(b)(1)(C) provides that 
the investigation may be delayed until the construction of the 
ship in question has been completed, even though the petition 
was filed at the time of contract.
     Section 822(b) states that if Commerce determines that a 
home-market sale was made at less than the cost of production 
and was at a price that does not permit recovery of all costs 
within five years, that sale may be disregarded in determining 
normal value. If a sale is disregarded, normal value would be 
based on another sale of a foreign like vessel in the ordinary 
course of trade. If no such sale is available, then Commerce 
must use constructed value to determine the normal value of the 
subject vessel.
     Section 822(f)(1)(C) provides for adjusting costs if they 
have been affected by startup operations. Section 822(f)(1)(D) 
would require that costs due to ``extraordinary circumstances'' 
such as labor disputes, fire, and natural disaster, be 
excluded.
     The rules applicable to normal value in Title VIII are 
similar to those of Title VII (section 773), altered only where 
necessary to account for the lengthy periods required to 
construct ships and the fact that, due to the unique nature of 
the shipbuilding industry, there often are few, if any, vessels 
constructed by the foreign shipbuilder that may be used as an 
appropriate comparison. Title VII contains no special provision 
for adjusting costs due to ``extraordinary circumstances'' such 
as labor disputes, fire, or natural disaster.
     The Committee understands that Commerce expects to use 
constructed value in most investigations because of lack of 
actual comparable sales. Nonetheless, the Committee expects 
that Commerce will make every effort to base normal value on 
home market or third-country sales when available within a 
reasonably coincident period.

                    Section 823: Currency Conversion

     Under section 823(a), Commerce would be required to 
convert foreign currencies into U.S. 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 rate specified in the forward-sale agreement 
shall be used.
     Section 823(b) would define the date of sale as the date 
of the contract of sale. If the material terms of sale are 
significantly changed after that date, the date of sale would 
be the date of the change, and Commerce would be required to 
adjust for any unreasonable effect on the injurious-pricing 
margin due only to fluctuations in the exchange rate between 
the original and the new date of sale.
     The provisions of section 823 are essentially the same as 
under Title VII, section 773A. Unlike the WTO Antidumping 
Agreement, however, the Shipbuilding Agreement does not require 
that, in converting currencies, fluctuations in exchange rates 
are to be ignored. This difference between the two agreements, 
which is reflected in Title VIII, accounts for differences in 
the respective investigations under the two titles, as well as 
the particular characteristics of the shipbuilding industry. In 
an antidumping investigation under Title VII, Commerce 
generally investigates multiple transactions during the 12 
months prior to the filing of the petition. During that period 
of time, the exchange rate may fluctuate or change. 
Accordingly, under Title VII, Commerce is required to allow 
exporters time to adjust their export prices in response to 
sustained changes in the exchange rate. However, most Title 
VIII injurious-pricing investigations would involve only a 
single sales transaction.
     Furthermore, two years or more may elapse between the time 
a ship contract is signed and ship construction is completed. 
Because of the long lead-time, during which numerous contract 
modifications may occur that could change the date of sale, 
there is much greater potential for movements in exchange rates 
to distort unreasonably the margin calculation for that sale. 
Therefore, section 823 requires adjustments to eliminate such 
distortions.

                         SUBTITLE C--PROCEDURES

                  Sections 841 Through 845: Procedures

     Sections 841 through 845 set forth procedural requirements 
concerning the injurious-pricing mechanism. Specifically, 
section 841 provides that, upon request, Commerce and the ITC 
are each to hold hearings during their investigations.
     Section 842 provides for determinations on the basis of 
the facts available. As in section 776 of Title VII, the option 
to use adverse inferences would be limited to those cases in 
which the agency 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. Moreover, whenever the agency 
relies on secondary information rather than information 
obtained during the course of the investigation, the agency, to 
the extent practicable, would be required to corroborate that 
information from independent sources that are reasonably at its 
disposal.
     Section 843 sets forth the requirements for making 
information concerning the investigation available to the 
public, treating information as proprietary, disclosing 
proprietary information under protective order, serving 
submissions on other parties, handling violations of protective 
orders and sanctions, providing opportunity for comment by 
vessel buyers, and publishing determinations.
     Section 844 sets forth procedures for conducting 
investigations, including certification of submissions, the 
manner for handling difficulties by the parties in meeting 
requirements of the investigation, treatment of deficient 
submissions, use of information submitted by the parties, non-
acceptance of submissions, public comment on information, and 
verification of information submitted. The provision would 
require that the agencies not decline to consider information 
submitted by an interested party that is necessary to the 
determination but does not meet all of the requirements of the 
agency, if the information is submitted by the established 
deadline, it can be verified (where appropriate), it is not so 
incomplete that it cannot serve as a reliable basis for 
reaching a determination, the interested party has demonstrated 
that it has acted to the best of its ability to provide the 
information and meet the requirements, and that the information 
can be used without undue difficulty.
     All of these procedural requirements under Title VIII are 
the same as the procedures set up under Title VII in sections 
774, 776, 777, and 782 with respect to antidumping 
investigations. In addition, because the Shipbuilding Agreement 
provides that injurious-pricing determinations are subject to 
dispute resolution before the OECD, section 845 sets forth 
requirements for administrative action following OECD panel 
reports issued under the dispute-settlement rules of the 
Shipbuilding Agreement, which are virtually identical to the 
requirements in section 129 of the Uruguay Round Agreements Act 
with respect to administrative action following WTO dispute-
settlement panel reports on antidumping and injury 
determinations.
     The Committee intends that the procedural requirements of 
current law with respect to antidumping apply to shipbuilding 
investigations as well. Accordingly, antidumping procedural 
requirements under Title VII have been repeated in Title VIII, 
making only those changes necessitated by the differences 
between the WTO Antidumping Code and the Shipbuilding 
Agreement.

                         SUBTITLE D--DEFINITIONS

                        Section 861: Definitions

     Industry; Producer: Section 861(4) defines ``industry'' as 
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 like vessel. A ``producer'' is 
defined as including an entity that is producing the domestic 
like vessel and an entity with the capability to produce the 
domestic like vessel. ``Capability to produce'' is further 
defined as the capability of a producer to produce a domestic 
like vessel with its present facilities or ability to adapt its 
facilities in a timely manner.
     By contrast, under Title VII, section 771(4) defines 
``industry'' as the producers as a whole of a domestic like 
product, or those producers whose collective output of a 
domestic like product constitutes a major proportion of the 
total domestic production of the product.
     As discussed above with respect to section 802 of Title 
VIII, vessels are generally unique and made to individual 
specifications. Therefore, a domestic producer may not have 
produced a vessel like the subject vessel but could, 
nonetheless, still be injured by the sale because that producer 
was capable of producing such a vessel. Accordingly, the 
definition of ``industry'' and ``producer'' in Title VIII would 
not require that the party actually produce a like vessel in 
order to be considered a producer or part of the industry. This 
definition under Title VIII differs from Title VII, which 
requires that the petitioner, if a producer, actually produce 
or manufacture the like product (except in the context of a 
determination whether the establishment of a domestic industry 
is materially retarded by reason of subject imports).
     Buyer; United States buyer: Section 801(a)(1) requires 
that a vessel be sold directly or indirectly to a U.S. buyer in 
order for an injurious-pricing investigation under Title VIII 
to be commenced. Section 861(5) defines a ``buyer'' as any 
person who acquires an ownership interest in a vessel, 
including by lease or long-term bareboat charter, in 
conjunction with the original transfer from the producer, 
either directly or indirectly.
     Section 861(6) defines ``United States buyer'' as a buyer 
that is a U.S. citizen, a juridical entity organized under the 
laws of the United States (or a political subdivision thereof), 
or another juridical entity owned or controlled by such a 
juridical entity or U.S. citizen. The term ``own'' is defined 
as having more than a 50 percent interest. The term ``control'' 
is defined as the actual ability to have substantial influence 
on corporate behavior, which is presumed to exist where there 
is at least a 25 percent interest.
     Title VII does not contain a definition of buyer or 
purchaser because Title VII does not require that a sale of the 
subject merchandise be made to a U.S. entity for an antidumping 
investigation to be commenced. Instead, Title VII requires that 
the subject merchandise enter the United States for 
consumption.
     Because ocean-going vessels are technically not imported 
or entered for consumption in the United States, however, the 
Shipbuilding Agreement and Title VIII would permit 
investigations to be commenced only when a vessel is sold 
directly or indirectly to a U.S. buyer.
     Ownership interest: With respect to the definition of a 
``buyer'' in section 861(5), section 861(7) defines the term 
``ownership interest'' as including any contractual or 
proprietary interest allowing the beneficiary to take advantage 
of the operation of a vessel in a manner substantially 
comparable to an owner. Section 861(5) automatically includes 
leases or bareboat charters as being ownership interests.
     In an antidumping investigation under Title VII, Commerce 
may determine that a lease is equivalent to a sale under 
section 771(19) after considering the terms of the lease, 
commercial practice within the industry, the circumstances of 
the transaction, whether the product subject to the lease is 
integrated into the operations of the lessee or importer, 
whether in practice there is a likelihood that the lease will 
be continued or renewed for a significant period of time, and 
other relevant factors, including whether the lease transaction 
would permit avoidance of antidumping or countervailing duties.
     Vessel; Respondents subject to investigation: Section 
861(8) defines ``vessel'' as 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 
icebreakers and dredgers) and a tug of 365 kilowatts or more, 
as long as it is produced in a Shipbuilding Agreement Party or 
in a country that is neither a Shipbuilding Agreement Party nor 
a member of the WTO. Accordingly, respondents in injurious-
pricing investigations must be from countries that are parties 
to the Shipbuilding Agreement or from countries that are 
neither parties to the Shipbuilding Agreement nor members of 
the WTO. Thus, if a producer is from a country that is a member 
of the WTO but is not a party to the Shipbuilding Agreement, 
the Title VIII remedy may not be utilized.
     By contrast, Title VII (section 771(16)) provides that a 
respondent may be from any country, even if it is not a member 
of the WTO, as long as the product is imported or sold for 
importation into the United States. This distinction between 
Title VII and Title VIII arises out of concern that an 
injurious-pricing action against a WTO member that agreed to be 
bound only by the rules of the WTO but not the provisions of 
the Shipbuilding Agreement may be subject to challenge as being 
inconsistent with U.S. obligations under the WTO.
     Section 861(8) also excludes from the definition of 
``vessel'' and, thereby from the application of the injurious-
pricing provisions in the Shipbuilding Agreement, certain 
fishing vessels, military vessels, military reserve vessels, 
and certain other vessels sold before the entry into force of 
the Shipbuilding Agreement. For purposes of Title VIII, this 
section also defines the terms ``self-propelled seagoing 
vessel,'' ``military vessel,'' and ``military reserve vessel.''
     Like vessel: Section 861(9) defines a ``like vessel'' as a 
vessel of the same type, purpose, and approximate size as the 
subject vessel and possessing characteristics closely 
resembling those of the subject vessel. This definition of 
``like vessel'' in Title VIII is analogous to the definition of 
``like product'' in Title VII.
     Under Title VII, section 771(10) defines a ``domestic like 
product'' as a product which is like, or in the absence of 
like, most similar in characteristics and uses with, the 
article subject to investigation.
     The Committee recognizes that ocean-going vessels are 
frequently built to unique specifications. Accordingly, the 
Committee intends that, under the appropriate circumstances, 
there may be some minor variation in size and equipment between 
like vessels.
     Material injury: Section 861(16) defines ``material 
injury'' as harm that is not inconsequential, immaterial, or 
unimportant. In making its determination whether an industry in 
the United States is or has been materially injured by reason 
of the sale of the subject vessel, section 861(16)(B) would 
require the ITC to consider the sale of the subject vessel, the 
effect of the sale of the subject vessel on prices in the 
United States for a domestic like vessel, and the impact of the 
sale of the subject vessel on domestic producers of a domestic 
like vessel, but only in the context of production operations 
in the United States. In addition, the ITC may consider such 
other economic factors as are relevant to the material-injury 
determination.
     In considering the sale of the subject vessel for purposes 
of determining material injury, section 861(16)(C)(i) would 
require the ITC to ascertain 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.
     In evaluating the effect of the sale of the subject vessel 
on prices, section 861(16)(C)(ii) specifies that the ITC 
consider whether there has been significant underselling of the 
subject vessel as compared with the price of a domestic like 
vessel and whether the effect of the sale 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.
     Finally, in evaluating the impact on the domestic 
industry, section 861(16)(C)(iii) requires evaluation of all 
relevant economic factors having a bearing on the state of the 
U.S. industry, including actual and potential decline in 
output, sales (or offers for sale), market share, profits, 
productivity, return on investments, and utilization of 
capacity; factors affecting domestic prices; actual and 
potential negative effects on cash flow, employment, wages, 
growth, ability to raise capital, and investment; actual and 
potential negative effects on the existing development and 
production efforts of the domestic industry; and the magnitude 
of the injurious-pricing margin. All factors are to be 
evaluated within the context of the business cycle and 
conditions of competition that are distinctive to the domestic 
industry.
     Section 771(7)(B) of Title VII requires the ITC to 
consider the volume of subject imports in determining whether a 
domestic industry is materially injured by reason of such 
imports. The definitions of ``material injury'' and the 
requirements for determining material injury under Title VIII 
are analogous. Differences between the two titles are merely 
intended to account for the particular characteristics of the 
shipbuilding industry and the requirements of the Shipbuilding 
Agreement.
     Nonetheless, with respect to the consideration of volume 
in determining material injury under Title VIII, the Committee 
recognizes that, unlike antidumping cases, injurious-pricing 
proceedings will normally involve the sale of only one vessel. 
Therefore, it is the Committee's view that, depending upon the 
circumstances of a particular investigation, the sale of one 
vessel at an injurious price may be sufficient to satisfy the 
volume criterion under Title VIII, whereas, it would be an 
unusual case in which a single sale would be considered a 
significant volume under Title VII. In addition, the Committee 
intends consideration of the ``sale'' under Title VIII to 
include the number of sales, tonnage, and value represented by 
that sale or sales, as appropriate.
     Moreover, as discussed above concerning section 801, Title 
VIII provides that there must be a demonstration that there is 
or has been material injury by reason of the sale of the vessel 
or vessels in question. Accordingly, the material-injury 
provision under Title VIII is drafted to permit consideration 
of whether the sale of the subject vessel has caused price 
depression or suppression.
     Threat: Section 861(16)(E) specifies that in determining 
whether a U.S. industry is threatened with material injury by 
reason of the sale of the subject vessel, the ITC is to 
consider, among other relevant economic factors, 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 U.S. buyers, taking into account the availability of 
other export markets to absorb any additional exports; whether 
the sale of a foreign like vessel or other factors indicate the 
likelihood of significant additional sales to U.S. buyers; 
whether the 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; the potential for product shifting; the actual 
and potential negative effects on the existing development and 
production efforts of the domestic industry; and 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.
     These criteria under Title VIII for determining threat of 
material injury in an injurious-pricing investigation are 
analogous to the criteria under section 771(7)(F) in Title VII 
that the ITC is to consider in determining threat of material 
injury by reason of dumped imports. The only differences in the 
threat criteria between the two titles are intended to account 
for the particular characteristics of the shipbuilding industry 
and the requirements of the Shipbuilding Agreement. Therefore, 
except when necessary to account for these differences, the ITC 
should apply the threat criteria in Title VIII in the same 
manner as under Title VII.
     The Committee notes, however, that although both Title VII 
and Title VIII make reference to ``substantially increased 
sales'' in the threat section, the increase in sales of a 
foreign like vessel or the increase in production capacity may, 
in appropriate circumstances, satisfy the Title VIII criterion 
even though such increase may not be sufficient in most cases 
in the context of a threat determination under Title VII. The 
ITC's consideration of ``sale'' in determining threat of 
material injury under Title VIII includes the number of sales, 
tonnage, and value represented by that sale or sales. Because 
there may be no more than one sale in most instances, the ITC 
need not focus on evidence of increased past sales in 
determining the likelihood of future sales.
     Cumulation: Under section 861(16)(F), the ITC would be 
required, subject to certain exceptions, to assess cumulatively 
the effects of sales of foreign like vessels from all foreign 
producers. Section 861(16)(F) provides that the ITC must 
conduct a cumulative analysis with respect to petitions filed 
on the same day, investigations self-initiated on the same day, 
or petitions filed and investigations self-initiated on the 
same day, if the foreign producers of the subject vessels 
compete with each other and with producers of a domestic like 
vessel in the U.S. market.
     These requirements regarding cumulative analysis by the 
ITC under Title VIII are analogous to the provisions in section 
771(7)(G) of Title VII with respect to a cumulative assessment 
by the ITC of the volume and effects of imports of subject 
merchandise from all foreign countries. Therefore, the rules 
regarding the types of investigations that must be cumulated 
under Title VII and Title VIII are intended to be the same.
     The only difference between the two titles in final 
determinations in which the ITC performs a cumulative analysis 
concerns the use of the record compiled in the first 
investigation in which the ITC makes a final determination. In 
antidumping cases under Title VII, the ITC is generally 
required to use such a record. However, in injurious-pricing 
investigations under Title VIII, the ITC may, but would not be 
required to use this record. The reason for the difference is 
that some Title VIII investigations may be delayed for long 
periods of time in order to obtain cost-of-production 
information, and use of the record in the first investigation 
may, therefore, not be appropriate for purposes of conducting a 
cumulative analysis.
     Interested party: Section 861(17) defines ``interested 
party'' as the foreign producer, seller (other than the foreign 
producer), and the U.S. buyer of the subject vessel, or a trade 
or business association a majority of whose members are the 
foreign producer, seller, or U.S. buyer of the subject vessel; 
the government of the country in which the subject vessel is 
produced or manufactured; a producer that is a member of an 
industry; a certified union or recognized union or group of 
workers which is representative of an industry; a trade or 
business association a majority of whose members are producers 
in an industry; and an association a majority of whose members 
is composed of interested parties listed above.
     Except to account for the particular characteristics of 
the shipbuilding industry, these definitions of ``interested 
party'' are analogous to the definitions of ``interested 
party'' under section 771(9) in Title VII. However, 861(17)(G) 
would also permit a purchaser to be an interested party in 
countermeasure proceedings if, after the effective date of an 
order imposing countermeasures under section 807, the purchaser 
entered into a contract of sale with the foreign producer that 
is subject to the order. Giving such parties interested party 
status would permit them to participate in proceedings before 
Commerce to determine the scope and duration of 
countermeasures.

                     Enforcement of Countermeasures

                             (Section 103)

     Section 103 would amend Part II of Title IV of the Tariff 
Act of 1930 to provide the U.S. Customs Service with the 
authority to deny any request for a permit to lade or unlade 
passengers, merchandise, or baggage from or onto vessels listed 
by Commerce as being subject to countermeasures. Section 103(b) 
provides for certain limited exceptions to this rule.
     Unlike the WTO Antidumping Agreement, the Shipbuilding 
Agreement, as reflected in section 103, specifically provides 
for the imposition of countermeasures if the foreign shipyard 
in question does not pay the injurious-pricing charge assessed 
against it. Because the antidumping law permits the assessment 
of an antidumping duty on future entries of merchandise subject 
to an antidumping order, U.S. law does not permit the 
imposition of countermeasures in the dumping context.

  Judicial Review in Injurious Pricing and Countermeasure Proceedings

                             (Section 104)

     Section 104 amends the Tariff Act of 1930 to add section 
516B, which provides that interested parties may challenge 
Commerce and ITC final determinations before the Court of 
International Trade, with subsequent appeal to the U.S. Court 
of Appeals for the Federal Circuit. In such cases, the 
applicable standard of review is whether the determination is 
``unsupported by substantial evidence on the record, or 
otherwise not in accordance with law.'' In addition, certain 
preliminary determinations and countermeasure determinations 
may be challenged. In these cases, the standard of review is 
whether the determination is ``arbitrary, capricious, an abuse 
of discretion, or otherwise not in accordance with law.''
     Section 516B is analogous to the judicial review 
procedures and standards of review provided for in section 516A 
of the Tariff Act of 1930 in antidumping and countervailing 
duty investigations under Title VII. Therefore, the Committee 
intends that section 516B provide essentially analogous 
opportunities for judicial review as under section 516A. The 
differences are intended to take into account the differences 
in the two types of investigations, especially the imposition 
of countermeasures and the absence of comparable administrative 
reviews and sunset reviews under Title VIII.

                    b. subtitle b--other provisions

                    Equipment and Repair of Vessels

                             (Section 111)

     Section 111 amends section 466 of the Tariff Act of 1930, 
by adding a new subsection (i). The new subsection provides 
that the equipment supplied and repairs made in a signatory to 
the Shipbuilding Agreement on U.S.-flagged vessels of a type 
covered under the Shipbuilding Agreement, as well as U.S.-
flagged, integrated tug-barges or tug-barge combinations, are 
not subject to the 50-percent ad valorem duty imposed under 
subsection 466(a) of the Tariff Act of 1930 on the cost of such 
equipment and repair made in a foreign country on a U.S.-
flagged vessel.
     Section 111 implements the provision in the Shipbuilding 
Agreement that prohibits the collection of duties on vessel 
repairs made in a signatory to the Shipbuilding Agreement. 
Accordingly, U.S. law must be changed to eliminate the duty if 
the repairs to a U.S.-flagged vessel are made in a Shipbuilding 
Agreement signatory. Although not specifically covered by the 
Shipbuilding Agreement, this section also applies to integrated 
tug-barges and tug-barge combinations (provided that the barge 
is of 100 gross tons or more and the tug is of 365 kilowatts or 
more) because they share many of the same characteristics as 
vessels covered by the Shipbuilding Agreement. However, the 
duty would remain in place if the repairs are made in a country 
that is not a signatory to the Shipbuilding Agreement.

          Effect of Agreement with Respect to Private Remedies

                             (Section 112)

     Section 112 clarifies that no person other than the United 
States may assert any cause of action or defense under the 
Shipbuilding Agreement, or may challenge any action or inaction 
by the United States, the District of Columbia, any State, U.S. 
territory, or U.S. possession on the grounds that it is 
inconsistent with the Agreement. The implementing legislation 
of other trade agreements, such as section 102(c) of the 
Uruguay Round Agreements Act (Public Law 103-465) and section 
102(c) of the North American Free Trade Agreement 
Implementation Act (Public Law 103-182), have essentially 
identical provisions to limit private remedies under those 
trade agreements. The Committee intends that section 112 
provide the same limitations with respect to private remedies 
as in the Uruguay Round Agreements Act and the North American 
Free Trade Agreement Implementation Act.

                        Implementing Regulations

                             (Section 113)

     Section 113 authorizes relevant agencies to issue 
regulations, as may be necessary to ensure that the amendments 
made by the OECD Shipbuilding Trade Agreement Act are 
appropriately implemented on the date that the Shipbuilding 
Agreement enters into force with respect to the United States.
     The Committee intends that the relevant agencies take 
steps to ensure through regulation that the amendments made by 
the OECD Shipbuilding Trade Agreement Act are appropriately 
implemented upon entry into force. With respect to injurious 
pricing, the Committee expects that regulations would be 
modeled after regulations implementing Title VII of the Tariff 
Act of 1930 wherever possible, making only those changes 
necessitated by the differences between existing law and the 
amendments made by the OECD Shipbuilding Trade Agreement Act.

              Amendments to the Merchant Marine Act, 1936

                             (Section 114)

     Section 114 makes several changes to the Merchant Marine 
Act, 1936, which fall within the jurisdiction of the Senate 
Committee on Commerce, Science, and Transportation.

                  Applicability of Title XI Amendments

                             (Section 115)

     Section 115 makes certain changes to Title XI of the 
Merchant Marine Act, 1936 which fall within the jurisdiction of 
the Senate Committee on Commerce, Science, and Transportation.

                       Monitoring and Enforcement

                             (Section 116)

     Section 116 requires USTR to establish a program to 
monitor other Shipbuilding Agreement parties' compliance with 
the terms of the Shipbuilding Agreement, which should include 
the establishment of an inter-agency task force and 
consultations with U.S. embassies, industry, labor, and other 
interested parties. USTR is also required to submit an annual 
report to Congress on USTR's monitoring activities, the results 
of its consultations, and other parties' compliance with the 
Agreement. This section also provides that USTR should 
vigorously use the consultation procedures under the 
Shipbuilding Agreement if it receives information that a 
Shipbuilding Agreement Party is materially violating the 
Agreement in a manner that is detrimental to U.S. interests. If 
the matter is not otherwise resolved through consultation, USTR 
is directed to use the dispute-settlement procedures provided 
for under the Shipbuilding Agreement to redress the situation.

                Jones Act and Related Laws Not Affected

                             (Section 117)

     Section 117 clarifies the relationship between the 
requirements of the Shipbuilding Agreement and the Merchant 
Marine Act, 1920 (46 App. U.S.C. 861 et seq.), the Act of June 
19, 1886 (46 App. U.S.C. 289), or any other provision of law 
set forth in Accompanying Note 2 to Annex II of the 
Shipbuilding Agreement (referred to collectively as the Jones 
Act). This provision falls within the jurisdiction of the 
Senate Committee on Commerce, Science, and Transportation.

                 Withdrawal from Shipbuilding Agreement

                             (Section 118)

     Section 118(a) requires the President to give notice of 
withdrawal by the United States from the Shipbuilding Agreement 
(under Article 14 of that Agreement) as soon as practicable 
(normally within two to four weeks) after one or more 
Shipbuilding Agreement parties accounting for a specified 
tonnage of new Shipbuilding Agreement vessel construction 
(which does not include vessel repair) gives notice of 
intention to withdraw. This section also provides that the 
President may terminate the notice of withdrawal if one or more 
of the Shipbuilding Agreement parties terminates its (their) 
notice(s) of withdrawal and that any parties still intending to 
withdraw account for less than the specified tonnage of new 
Shipbuilding Agreement vessel construction.
     Section 118(b) sets out procedures for withdrawal of 
Congressional approval of the Shipbuilding Agreement when a 
Shipbuilding Agreement Party undertakes responsive measures 
pursuant to a determination under the Shipbuilding Agreement 
that the Jones Act has significantly undermined the balance of 
rights and obligations under the Agreement. Under these 
procedures, section 118(b)(1) requires the President to notify 
the Senate Committees on Finance and Commerce, Science and 
Transportation, and the House Committees on Ways and Means and 
National Security upon notice by a Shipbuilding Agreement Party 
of intention to apply such responsive measures under paragraph 
2.e of Annex II B of the Shipbuilding Agreement and the 
applicable date of such measures. The President should provide 
this notice to the committees as soon as practicable, normally 
within two to four weeks of the notice by the Shipbuilding 
Agreement Party.
    The term ``applicable date'' is defined in section 
118(b)(5) as the date on which the responsive measures are 
first scheduled to be applied by the Shipbuilding Agreement 
Party. In some cases, the notification by the Shipbuilding 
Agreement Party of intention to apply responsive measures will 
not specify the date those measures may first be applied. In 
these instances, USTR should make every effort to determine the 
applicable date of the responsive measures from the 
Shipbuilding Agreement Party. Once that date is determined, the 
President is to issue as soon as practicable, a second 
notification to the Senate Committees on Finance and Commerce, 
Science, and Transportation, and the House Committees on Ways 
and Means and National Security, informing the committees of 
the applicable date. If USTR is unable to ascertain the 
applicable date, the President shall so inform the committees 
and the date of the President's first notification to the 
committees shall be deemed to be the applicable date of the 
responsive measures.
     While the President should consult with the appropriate 
Congressional committees in the event that the OECD Parties 
Group authorizes one or more Shipbuilding Agreement parties to 
undertake responsive measures pursuant to paragraph 2.e of 
Annex II B, such authorization alone does not require formal 
notification mandated by section 118(b)(1). Rather, it is the 
intention of the Committee that the President issue the formal 
notification required by section 118(b)(1) only after the OECD 
Parties Group has authorized the undertaking of responsive 
measures and a government entity of one or more Shipbuilding 
Agreement parties has issued a notice of intention to apply 
such measures.
     Section 118(b)(2) provides that, as of the applicable date 
of the responsive measures, Congress may consider and adopt a 
joint resolution providing for withdrawal of Congressional 
approval of the Shipbuilding Agreement. Under sections 118(b) 
(3) and (4) such a resolution may be introduced by any Member 
at any time on or after the applicable date. Congress then has 
90 legislative days from the applicable date to transmit the 
resolution to the President; the Senate Committee on Finance 
and the House Committee on Ways and Means have up to 45 of 
those days to report the resolution or they are automatically 
discharged. If the President then vetoes the resolution, each 
House has 15 legislative days to vote to override the veto. 
Under subsection (b)(4)(B)(ii), the resolution would be subject 
to the ``fast track'' rules in section 152 of the 1974 Trade 
Act.
     Section 118(b)(4)(B)(iv)(III) specifies that it would not 
be in order for Congress to consider a joint resolution or vote 
to override a Presidential veto of the joint resolution if the 
President notifies the appropriate Congressional committees 
that the decision to apply the relevant responsive measures has 
been withdrawn and the measures have not yet been applied. 
Furthermore, section 118(b)(4)(C) states that it would not be 
in order for either the House of Representatives or the Senate 
to consider another joint resolution (other than a joint 
resolution received from the other House), if that House has 
already voted on a joint resolution for withdrawal from the 
Shipbuilding Agreement with respect to the same Presidential 
notification regarding the implementation of responsive 
measures.

           Expanding Membership in the Shipbuilding Agreement

                             (Section 119)

     Section 119 requires USTR to monitor the policies and 
practices of countries that are not parties to the Shipbuilding 
Agreement and to seek the accession of countries that have 
significant commercial shipbuilding and repair industries, 
including Australia, Brazil, India, the People's Republic of 
China, Poland, Romania, Singapore, the Russian Federation, and 
Ukraine. USTR is also required to provide Congress with an 
annual report on its efforts to expand membership in the 
Shipbuilding Agreement.

             Protection of United States Security Interests

                             (Section 120)

     Section 120 clarifies the relationship between the 
requirements of the Shipbuilding Agreement and the protection 
of U.S. security interests. This provision is within the 
jurisdiction of the Senate Committee on Commerce, Science, and 
Transportation.

                              Definitions

                             (Section 121)

     Section 121 defines various terms for purposes of subtitle 
B of the OECD Shipbuilding Trade Agreement Act. The term 
``appropriate committees'' refers to the Senate Committees on 
Finance and Commerce, Science, and Transportation and the House 
Committees on Ways and Means and National Security.
     The terms ``Shipbuilding Agreement,'' ``Shipbuilding 
Agreement Party,'' ``Shipbuilding Agreement vessels,'' and 
``Export Credit Understanding'' have the same meanings as in 
subsections (h), (i), (j), and (k) of section 905 of the 
Merchant Marine Act, 1936 (as added by section 114(8) of the 
OECD Shipbuilding Trade Agreement Act), respectively.
     The term ``GATT 1994'' has the same meaning as in section 
2 of the Uruguay Round Agreements Act (19 U.S.C. 3501).
     This section also defines the terms ``military vessel'' 
and ``military reserve vessel.''

             Capital Construction Fund Conforming Amendment

                             (Section 122)

 Present Law

     Under section 7518 of the Internal Revenue Code of 1986, 
in determining taxable income for regular tax purposes, a 
qualified taxpayer who owns or leases a qualified vessel (an 
``agreement vessel'') is allowed a deduction for certain 
amounts contributed to a fund established under section 607 of 
the Merchant Marine Act, 1936 (a ``capital construction 
fund''). In addition, the investment earnings on amounts 
contributed to a capital construction fund are excluded from 
gross income for regular tax purposes.
     If a withdrawal from a capital construction fund is used 
to acquire, construct, or reconstruct a qualified vessel, the 
amount withdrawn generally is not included in gross income and 
the basis of the qualified vessel generally is reduced by the 
amount withdrawn to the extent attributable to amounts 
previously deducted or excluded from income. In the case of any 
other withdrawal from a capital construction fund, the amount 
withdrawn generally is included in gross income to the extent 
attributable to amounts previously deducted or excluded from 
income and interest on the tax liability attributable to such 
inclusion generally must be paid from the date of the deduction 
or exclusion.
     Any term (including the definition of ``agreement 
vessel'') provided in section 607(k) of the Merchant Marine 
Act, 1936, as in effect as of the date of enactment of the Tax 
Reform Act of 1986, applies for purposes of section 7518. Under 
section 607(k) of the Merchant Marine Act, 1936, as in effect 
as of the date of enactment of the Tax Reform Act of 1986, an 
agreement vessel generally is a vessel constructed or 
reconstructed in the United States (the ``U.S.-build 
requirement'') and documented under the laws of the United 
States (the ``U.S.-flag requirement''). In addition, the person 
maintaining the capital construction fund must agree with the 
Secretary (of Commerce or Transportation) that the vessel will 
be operated in the United States foreign trade, Great Lakes 
trade, or noncontiguous domestic trade or in the fisheries of 
the United States.

 Reasons for Change

     Under present law, in order for a vessel to qualify for 
the tax benefits provided through capital construction funds, 
the vessel must meet certain requirements described in the 
Merchant Marine Act, 1936, as in effect as of the date of 
enactment of the Tax Reform Act of 1986. Among these 
requirements is that the vessel must have been constructed or 
reconstructed in the United States. This requirement conflicts 
with a goal of the OECD shipbuilding trade agreement, which 
seeks to minimize or eliminate shipbuilding subsidies among the 
signatory nations. Thus, the Committee amends the Internal 
Revenue Code of 1986 in order to conform to the definition of 
``agreement vessel'' as provided by the OECD Shipbuilding Trade 
Agreement Act.

 Explanation of Provision

     For purposes of section 7518 of the Internal Revenue Code 
of 1986, the terms ``eligible vessel'' and ``qualified vessel'' 
shall have the same meaning as provided in section 607(k) of 
the Merchant Marine Act, 1936, as amended by the OECD 
Shipbuilding Trade Agreement Act. Thus, in general, for 
purposes of the tax benefits provided by capital construction 
funds, an agreement vessel will include any vessel constructed 
or reconstructed in any nation that is a signatory to the OECD 
shipbuilding agreement entered into on December 21, 1994.

                     c. subtitle c--effective date

                             (Section 131)

     Section 131(a) provides that the amendments made by the 
OECD Shipbuilding Trade Agreement Act take effect on the date 
that the Shipbuilding Agreement enters into force with respect 
to the United States. It is the expectation of the Committee 
that the Shipbuilding Agreement is unlikely to enter into force 
with respect to the United States before January 1, 2000, when 
the current terms of the Title XI program under the Merchant 
Marine Act, 1936, expire.
     Section 131(b) also provides that if the United States 
withdraws from the Shipbuilding Agreement for any reason, the 
OECD Shipbuilding Agreement Act and all changes to U.S. law 
made by the Act would cease to have effect as of the date of 
the withdrawal.

         2. TITLE II--INTERNATIONAL SHIPPING INCOME DISCLOSURE

 Penalties for Failure to Disclose Position that Certain International 
           Shipping Income is Not Includable in Gross Income

                             (Section 201)

 Present Law

     The United States generally imposes a 4-percent tax on the 
U.S.-source gross transportation income of foreign persons that 
is not effectively connected with the foreign person's conduct 
of a U.S. trade or business (sec. 887 of the Internal Revenue 
Code of 1986). Foreign persons generally are subject to U.S. 
tax at regular graduated rates on net income, including 
transportation income, that is effectively connected with a 
U.S. trade or business (secs. 871(b) and 882).
     Transportation income is any income derived from, or in 
connection with, the use (or hiring or leasing for use) of a 
vessel or aircraft (or a container used in connection 
therewith) or the performance of services directly related to 
such use (sec. 863(c)(3)). Income attributable to 
transportation that begins and ends in the United States is 
treated as derived from sources in the United States (sec. 
863(c)(1)). Transportation income attributable to 
transportation that either begins or ends in the United States 
is treated as derived 50 percent from U.S. sources and 50 
percent from foreign sources (sec. 863(c)(2)). U.S.-source 
transportation income is treated as effectively connected with 
a foreign person's conduct of a U.S. trade or business only if 
the foreign person has a fixed place of business in the United 
States that is involved in the earning of such income and 
substantially all of such income of the foreign person is 
attributable to regularly scheduled transportation (sec. 
887(b)(4)).
     An exemption from U.S. tax is provided for income derived 
by a nonresident alien individual or foreign corporation from 
the international operation of a ship, provided that the 
foreign country in which such individual is resident or such 
corporation is organized grants an equivalent exemption to 
individual residents of the United States or corporations 
organized in the United States (secs. 872(b)(1) and 883(a)(1)).
     Pursuant to guidance published by the Internal Revenue 
Service, a nonresident alien individual or foreign corporation 
that is entitled to an exemption from U.S. tax for its income 
from the international operation of ships must file a U.S. 
income tax return and must attach to such return a statement 
claiming the exemption (Rev. Proc. 91-12, 1991-1 C.B. 473). If 
the foreign person is claiming an exemption based on an 
applicable income tax treaty, the foreign person must disclose 
that fact as required by the Secretary of the Treasury (sec. 
6114). The penalty for failure to make disclosure of a treaty-
based position as required under section 6114 is $1,000 for an 
individual and $10,000 for a corporation (sec. 6712).
     At the time the 4-percent tax on U.S.-source gross 
transportation income was enacted, concern was expressed about 
whether compliance with the tax, which is collected by means of 
the filing of a tax return, would be adequate. It was intended 
that the tax-writing committees of Congress and the Secretary 
of the Treasury would study the issue of compliance and that 
the Secretary would make recommendations if compliance did not 
prove adequate.\2\
---------------------------------------------------------------------------
    \2\ Joint Committee on Taxation, General Explanation of the Tax 
Reform Act of 1986 (JCS-10-87), May 4, 1987, p. 930.
---------------------------------------------------------------------------

 Reasons for Change

     The Committee understands that there is an extremely high 
level of noncompliance with the U.S. tax rules by foreign 
persons that have U.S.-source shipping income. The Committee 
believes that, in order to address these noncompliance 
problems, it is appropriate to impose significant penalties for 
a failure to satisfy the filing requirements for claiming the 
exemption from U.S. tax that is available to certain foreign 
persons with respect to income from the international operation 
of ships.

 Explanation of Provision

     Under the bill, a foreign person that claims exemption 
from U.S. tax for income from the international operation of 
ships, but does not satisfy the filing requirements for 
claiming such exemption, is subject to the penalty of the 
denial of such exemption and any deductions or credits 
otherwise allowable in determining the U.S. tax liability with 
respect to such income. If a foreign person that has a fixed 
placed of business in the United States fails to satisfy the 
filing requirements for claiming an exemption from U.S. tax for 
its income from the international operation of ships, such 
person is subject to the additional penalty that foreign source 
income from the international operation of ships would be 
treated as effectively connected with the conduct of a U.S. 
trade or business, but only to the extent that such income is 
attributable to such fixed place of business in the United 
States. Income so treated as effectively connected with a U.S. 
trade or business is subject to U.S. tax at graduated rates 
(and is subject to the disallowance of deductions and credits 
described above). These penalties are subject to a reasonable 
cause exception. The provision would not apply to the extent 
the application would be contrary to any treaty obligation of 
the United States.
     The bill also provides for the provision of information by 
the U.S. Customs Service to the Secretary of the Treasury 
regarding foreign-flagged ships engaged in shipping to or from 
the United States.

 Effective Date

     The provision is effective for taxable years beginning 
after December 31, 1997.

                        IV. Congressional Action

    On October 23, 1995, Senator Breaux introduced legislation 
(S. 1354) to implement the Shipbuilding Agreement. On December 
11, 1995, similar legislation (H.R. 2754) was introduced in the 
House.
    The Committee on Finance held a hearing on the Shipbuilding 
Agreement on December 5, 1995. During this hearing, the 
Committee heard testimony from the Administration in support of 
the Shipbuilding Agreement and other testimony from supporters 
and opponents of the Shipbuilding Agreement.
    On May 8, 1996, the Committee on Finance reported H.R. 
3074, which contained a number of trade items, including 
legislation to implement the Shipbuilding Agreement. 
Subsequently, on June 13, 1996, the House of Representative 
passed H.R. 2754, which, as amended, contained major 
substantive differences from the bill reported by the Committee 
on Finance. The Senate was unable to consider H.R. 2754 before 
the conclusion of the 104th Congress.
    On April 22, 1997, Senator Breaux again introduced 
legislation (S. 629) to implement the Shipbuilding Agreement. 
This bill contained a number of modifications from the both 
H.R. 3074 as reported by the Finance Committee and H.R. 2754 as 
passed by the House.

                        V. Vote of the Committee

    In compliance with section 133 of the Legislative 
Reorganization Act of 1946, the Committee states that the 
legislation was ordered favorably reported unanimously by voice 
vote on September 11, 1997.

                          VI. Budgetary Impact

    In compliance with sections 308 and 403 of the 
Congressional Budget Act of 1974, and paragraph 11(a) of Rule 
XXVI of the Standing Rules of the Senate, the following letter 
has been received from the Congressional Budget Office on the 
budgetary impact of the bill:
                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, September 19, 1997
Hon. William V. Roth, Jr.,
Chairman, Committee on Finance, U.S. Senate,
Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for the OECD Shipbuilding 
Trade Agreement, as ordered reported by the Senate Committee on 
Finance on September 11, 1997.
            Sincerely,
                                 June E. O'Neill, Director.

                                SUMMARY

    The Shipbuilding Trade Agreement would reduce the 50 
percent ad valorem duty on the cost of equipment and non-
emergency repairs obtained in foreign countries imposed upon 
U.S. flag vessels. The bill also expands the Capital 
Construction Fund, and increases penalties for failure to file 
a disclosure of exemption for income from certain international 
shipping. CBO and JCT estimate that this Agreement would 
increase governmental receipts by $3 million beginning in 
fiscal year 2000, and by $15 million over fiscal years 1997-
2002. 
    The Shipbuilding Trade Agreement contains no new private-
sector or intergovernmental mandates as defined in the Unfunded 
Mandates Reform Act of 1995 (UMRA), and would not impose any 
costs on state, local, or tribal governments.

                ESTIMATED COST TO THE FEDERAL GOVERNMENT

    The estimated budgetary impact of the Shipbuilding Trade 
Agreement is shown in the following table.

                              ESTIMATED BUDGETARY IMPACT OF FINANCE COMMITTEE BILL                              
                                    [By fiscal year, in billions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                        1997      1998      1999      2000      2001      2002  
----------------------------------------------------------------------------------------------------------------
                                                    REVENUES                                                    
Proposed Changes to OECD Shipbuilding Trade                                                                     
 Agreement..........................................         0         0         0        -7        -7        -7
Penalties for failure to file disclosure of                                                                     
 exemption for income from international operation                                                              
 of ships or aircraft by foreign persons............         0         0         0        12       15         15
Modify Capital Construction Fund....................         0         0         0        -2        -2        -2
----------------------------------------------------------------------------------------------------------------

    The outlay effects of this legislation fall within budget 
function 800 (general government).

                           BASIS OF ESTIMATE

Revenues

    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 U.S.C. 1466), U.S. 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 111 of 
the proposed legislation would partially repeal the duty by 
exempting repairs to U.S. flag vessels done in OECD signatory 
countries.
    CBO estimates that section 111 of the bill, pertaining to 
vessel repair duties, would decrease governmental receipts by 
$7 million beginning in fiscal year 2000 and by $21 million 
over the fiscal years 1997-2002, 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 U.S. Maritime Administration 
(MARAD), in December 1995 there were 141 vessels in the U.S. 
flag fleet. However, MARAD predicts a steady decline in the 
size of the U.S. fleet due to the impending expiration and 
expected termination of the operating-differential subsidy 
program, through which payments are made to U.S. 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 U.S. vessels in 
foreign ports are performed in OECD signatory countries. If 
section 111 of the bill is enacted, CBO assumes that additional 
U.S. 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 
October 1, 1999.
    Section 201 of the bill expands penalties for failure to 
satisfy the filing requirements for claiming the exemption from 
U.S. tax that is available to certain foreign persons with 
respect to income from international operation of ships. The 
Joint Committee on Taxation estimates that this provision would 
increase governmental receipts by $12 million in fiscal year 
2000 and by $42 million over fiscal years 1997-2002. CBO 
concurs with this estimate.
    Section 122 of the bill expands the eligibility requirement 
for the Capital Construction Fund by permitting repairs and 
construction to be undertaken overseas. JCT estimates that this 
provision will reduce governmental receipts by $2 million in 
fiscal year 2000, and by $6 million over fiscal years 1997-
2002. CBO concurs with this estimate.

                      PAY-AS-YOU-GO CONSIDERATIONS

    Section 252 of the Balanced Budget and Emergency Deficit 
Control Act of 1985 sets up pay-as-you-go procedures for 
legislation affecting direct spending or receipts through 1998. 
CBO estimates that the OECD Shipbuilding Trade Agreement would 
affect receipts. Therefore, pay-as-you-go procedures would 
apply to the bill. The pay-as-you-go impact is summarized 
below.

                      PAY-AS-YOU-GO CONSIDERATIONS                      
                [By fiscal year, in millions of dollars]                
------------------------------------------------------------------------
                                                    1997         1998   
------------------------------------------------------------------------
Changes in Outlays............................                          
(1)Not Applicable                                                       
Changes in Receipts...........................        0            0    
------------------------------------------------------------------------

      

              INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

    The bill contains no new private-sector or 
intergovernmental mandates as defined in UMRA, and would not 
impose any costs on state, tribal, or local governments.

                ESTIMATED BUDGET EFFECTS OF THE ``OECD SHIPBUILDING TRADE AGREEMENT ACT'' AS PASSED BY THE SENATE FINANCE COMMITTEE ON SEPTEMBER 11, 1997; FISCAL YEARS 1998-2007               
                                                                                    [In millions of dollars]                                                                                    
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                      Provision                            Effective        1998      1999      2000      2001      2002      2003      2004      2005      2006      2007     1998-02   1998-07
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1. The Shipbuilding Trade Agreement \1\..............            1/1/00   ........  ........        -5        -7        -7        -7        -7        -7        -7        -7       -19       -54
2. Penalties for failure to file disclosure of                                                                                                                                                  
 exemption for income from international operation of                                                                                                                                           
 ships by foreign persons............................     tyba 12/31/97          2         6        12       15         15        14        13        12        11        10        50       110
3. Modify Capital Construction Fund..................            1/1/00   ........  ........        -1        -2        -2        -3        -3        -3        -3        -3        -5       -20
                                                                                                                                                                                                
                                                      ------------------------------------------------------------------------------------------------------------------------------------------
      Net total......................................  .................         2         6         6         6         6         4         3         2         1  ........        26        36
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Joint Committee on Taxation.                                                                                                                                                                    
--------------------                                                                                                                                                                            
\1\ Estimate provided by the Congressional Budget Office.                                                                                                                                       
                                                                                                                                                                                                
Note: Details may not add to totals due to rounding.                                                                                                                                            
                                                                                                                                                                                                
Legend for ``Effective'' column: tyba = taxable years beginning after                                                                                                                           

                         VII. Regulatory Impact

    In compliance with paragraph 11(b) of Rule XXVI of the 
Standing Rules of the Senate, the Committee states that the 
bill will not significantly regulate any individuals or 
businesses, will not impact on the personal privacy of 
individuals, and will result in no significant additional 
paperwork.

                     VIII. Changes in Existing Law

     In compliance with paragraph 12 of Rule XXVI of the 
Standing Rules of the Senate, 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):

                     INTERNAL REVENUE CODE OF 1986

          * * * * * * *

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

          * * * * * * *

          PART II--NONRESIDENT ALIENS AND FOREIGN CORPORATION

                Subpart A--Nonresident alien individuals

          * * * * * * *

SEC. 872. GROSS INCOME.

    (a) General Rule.--In the case of a nonresident alien 
individual, except where the context clearly indicates 
otherwise gross income includes only--
          (1) gross income which is derived from sources within 
        the United States and which is not effectively 
        connected with the conduct of a trade or business 
        within the United States, and
          (2) gross income which is effectively connected with 
        the conduct of a trade or business within the United 
        States.
    (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 Includable 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 includable in gross 
        income by reason of subsection (a)(1) or section 
        872(b)(1) (or by reason of any applicable treaty) 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.
          * * * * * * *

SEC. 7518. TAX INCENTIVES RELATING TO MERCHANT MARINE CAPITAL 
                    CONSTRUCTION FUNDS.

          * * * * * * *
    (i) Definitions.--For purposes of this section, any term 
defined in section 607(k) of the Merchant Marine Act, 1936 
which is also used in this section (including the definition of 
``Secretary'') shall have the meaning given such term by such 
section 607(k) as in effect on the date of the enactment of 
this section, except that in the case of the terms ``eligible 
vessel'' and ``qualified vessel'', the amendments to such 
section by the OECD Shipbuilding Trade Agreement Act shall be 
taken into account.
          * * * * * * *

                           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.

          * * * * * * *
    (i) Exception to Imposition of Duty.--
          (1) In general.--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--
                  (A) 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);
                  (B) tugs of 365 kilowatts or more; and
                  (C) integrated tug-barges or tug-barge 
                combinations.
          (2) Self-propelled seagoing; integrated tug-barge.--
                  (A) Self-propelled seagoing.--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.
                  (B) Integated tug-barge.--An integrated tug-
                barge or tug-barge combination means a vessel 
                that is designed to operate together in either 
                the push mode or pull mode, if the barge is of 
                100 gross tons or more and the tug is of 365 
                kilowatts or more.
          * * * * * * *

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. 516A. JUDICIAL REVIEW IN COUNTERVAILING DUTY AND ANTIDUMPING DUTY 
                    PROCEEDINGS.

          * * * * * * *

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--Imposition of 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 injurious pricing.

                        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--Imposition of 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 during which an investigation 
        is initiated and pending as described in subsection 
        (d)(6)(A) shall not be included in calculating that 6-
        month period.
  (b) Initiation by Petition.--
          (1) Petition requirements.--
                  (A) In general.--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) Petitioners described in section 
                861(17)(c).--
                          (i) In general.--If the petitioner is 
                        a producer described in section 
                        861(17)(C), and--
                                  (I) if the vessel was sold 
                                through a broad multiple bid, 
                                the petition shall include 
                                information indicating that the 
                                petitioner was invited to 
                                tender a bid on the contract at 
                                issue, the petitioner actually 
                                did so, and the bid of the 
                                petitioner substantially met 
                                the delivery date and technical 
                                requirements of the bid,
                                  (II) if the vessel was sold 
                                through any bidding process 
                                other than a broad multiple bid 
                                and the petitioner was invited 
                                to tender a bid on the contract 
                                at issue, the petition shall 
                                include information 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
                                  (III) except in a case in 
                                which the vessel was sold 
                                through a broad multiple bid, 
                                if there is no invitation to 
                                tender a bid, the petition 
                                shall include information 
                                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) Rebuttable presumption regarding 
                        knowledge of proposed purchase.--For 
                        purposes of clause (i)(III), 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) Petitioners described in section 
                861(17)(d).--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) Petitioners described in section 
                861(17)(e).--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) Petitioners described in section 
                861(17)(f).--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) Amendments.--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) or (II) 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)(III) 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) In general.--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) Calculation of 45-day period.--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 under such section.
  (b) Preliminary Determination by Administering Authority.--
          (1) Period of injurious pricing investigation.--
                  (A) In general.--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) Cost data used for normal value.--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) Normal value based on constructed 
                value.--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) Other cases.--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) Affirmative determination by commission 
                required.--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 
        injurious pricing 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(30)(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) General rule.--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) Request required.--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 as 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 7 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 Federal 
                        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 under paragraph (1).
  (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) Service of list.--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) Service of amendments.--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) In general.--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) Time for making request.--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) Suspension or modification of deadline.--
                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) Date for application of countermeasure.--
                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) Reinstitution of proceedings.--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), (d), or 
        (e), 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 (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 directly or indirectly to one or 
        more United States buyers 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) Sale at less than fair value.--The administering 
        authority shall determine whether the subject vessel 
        has been sold at less than fair value.
          (2) Injury to industry.--The Commission shall 
        determine whether an industry in the petitioning 
        country is or has been 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 INJURIOUS PRICING.

    (a) Petition by Domestic Industry.--
          (1) With respect to the sale of a vessel to a buyer 
        in a Shipbuilding Agreement Party, any interested party 
        who would be eligible to file a petition under section 
        802(b)(1) with respect to the sale if it had been to a 
        United States buyer, if it has reason to believe that--
                  (A) the vessel has been sold at less than 
                fair value, and
                  (B) an industry in the United States is or 
                has been materially injured, or is threatened 
                with material injury by reason of the sale of 
                the vessel, may submit a petition to the Trade 
                Representative that alleges the elements 
                referred to in subparagraphs (A) and (B) and 
                requests the Trade Representative to take 
                action under subsection (b) of this section on 
                behalf of the domestic industry.
          (2) A petition submitted under paragraph (1) shall 
        contain such detailed information as the Trade 
        Representative may require in support of the 
        allegations in the petition.
      (b) Application for Injurious Pricing Action on Behalf of 
the Domestic Industry.--
          (1) If the Trade Representative, on the basis of the 
        information contained in a petition submitted under 
        subsection (a), determines that there is a reasonable 
        basis for the allegations in the petition, the Trade 
        Representative shall submit to the appropriate 
        authority of the Shipbuilding Agreement Party where the 
        alleged injurious pricing is occurring an application 
        pursuant to Article 10 of Annex III of the Shipbuilding 
        Agreement. The application shall request that 
        appropriate injurious pricing action be taken on behalf 
        of the United States with respect to the sale of the 
        vessel under the law of the country of that Party 
        consistent with the terms of the Shipbuilding 
        Agreement.
          (2) At the request of the Trade Representative, the 
        appropriate officers of the Department of Commerce and 
        the United States International Trade Commission shall 
        assist the Trade Representative in preparing the 
        application under paragraph (1).
      (c) Consultation After Submission of Application.--After 
submitting an application under subsection (b)(1), the Trade 
Representative shall seek consultations with the appropriate 
authority of the Shipbuilding Agreement Party regarding the 
request for injurious pricing action.
      (d) Action Upon Refusal of Shipbuilding Agreement Party 
To Act.--If the appropriate authority of the Shipbuilding 
Agreement Party refuses to undertake injurious pricing measures 
in response to a request made by the Trade Representative under 
subsection (b), the Trade Representative promptly shall consult 
with the domestic industry on whether action under any other 
law of the United States is appropriate.

                       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 (e) 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 are 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.
        For purposes of this paragraph, the profit shall 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 the 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 that submitted 
                                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 United States 
                        buyer and the foreign producer, and the 
                        country of origin of the subject 
                        vessel,
                          (ii) a description sufficient to 
                        identify the subject vessel (including 
                        type, purpose, and size),
                          (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 to the 
proceeding 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). 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.

  In 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 domestic 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 of the subject 
                vessel 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 within the industry,
                  (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 dredges), 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 or any 
                        military reserve vessel, and
                          (iii) 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 that, 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, if 
                the vessel (without regard to such features and 
                characteristics) is otherwise subject to the 
                terms and conditions of the Shipbuilding 
                Agreement.
          (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 an investigation or an 
        injurious pricing order under this title.
          (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 a 
                                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 bid 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--JUDICIARY AND JUDICIAL PROCEDURE

           * * * * * * *

                CHAPTER 95--COURT OF INTERNATIONAL TRADE

           * * * * * * *

SEC. 1581. CIVIL ACTIONS AGAINST THE UNITED STATES AND AGENCIES AND 
                    OFFICERS THEREOF.

    (a) The Court of International Trade shall have exclusive 
jurisdiction of any civil action commenced to contest the 
denial of a protest, in whole or in part, under section 515 of 
the Tariff Act of 1930.
    (b) The Court of International Trade shall have exclusive 
jurisdiction of any civil action commenced under section 516 of 
the Tariff Act of 1930.
    (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.

           * * * * * * *
    (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 (1) 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 writs 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. RESERVE FUNDS FOR CONSTRUCTION OR ACQUISITION OF VESSELS; 
                    TAXATION (46 APP. U.S.C. 1161 (1994)).

    (a) ``New Vessel'' Defined.--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) construction 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 OECD Shipbuilding Trade 
Agreement Act takes effect, into a construction reserve fund 
established under subsection (b), or the construction of which 
has been financed under Titles 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. SUBSIDY AUTHORIZED FOR OPERATION OF VESSELS IN FOREIGN TRADE 
                    OR IN OFF-SEASON CRUISES (46 APP. U.S.C. 1171 
                    (1994)).

    (a) Application for Subsidy; Conditions Precedent to 
Granting.--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. READJUSTMENTS; CHANGE IN SERVICE; WITHDRAWAL FROM SERVICE; 
                    PAYMENT OF EXCESS PROFITS; WAGES, ETC.; AMERICAN 
                    MATERIALS (46 APP. U.S.C. 1176 (1994)).

    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 service, 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, and 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 here 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. 607.7 CAPITAL CONSTRUCTION FUND (46 APP. U.S.C. 1177 
                    (1994)).

    (a) Agreement Rules; Persons Eligible; Replacement, 
Additional, or Reconstructed Vessels for Prescribed Trade and 
Fishery Operations; Amount of Deposits, Annual Limitation; 
Conditions and Requirements for Deposits and Withdrawals.--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 the 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 OECD Shipbuilding Trade Agreement Act 
                takes effect.
          * * * * * * *

SEC. 610. VESSELS ELIGIBLE TO SUBSIDY (46 APP. U.S.C. 1180 (1994)).

    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 economic 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. TRANSPORTATION IN AMERICAN VESSELS OF GOVERNMENT PERSONNEL 
                    AND CERTAIN CARGOES (46 APP. U.S.C. 1241 (1994)).

          * * * * * * *
    (b) Cargoes Procured, Furnished or Financed by United 
States; Waiver in Emergencies; Exceptions; Definition.--
          (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 geographic 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: 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 purchases 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 OECD 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 OECD 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 OECD 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. DEFINITIONS (46 APP. U.S.C. 1244 (1994)).

          * * * * * * *
    (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.
    (m) The term ``integrated tug-barge'' has the meaning given 
such term in section 466(i) of the Tariff Act of 1930 (19 
U.S.C. 1466(i)).
          * * * * * * *

               TITLE XI--FEDERAL SHIP MORTGAGE INSURANCE

          * * * * * * *

SEC. 1104A. ELIGIBILITY FOR GUARANTEE (46 APP. U.S.C. 1274 (1994)).

           * * * * * * *
    (b) Contents of Obligations.--Obligations guaranteed under 
this title--
           * * * * * * *
          [(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) Limitation on Establishment of Percentage.--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 subsection (b)(2);
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 1121(b), or
          (C) the 80 percent or less limitation in the 3rd 
        proviso to subsection (b)(2),
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.
          * * * * * * *
    (k) The Secretary shall establish by rule, regulation, or 
procedure a uniform percentage with respect to integrated tug-
barges that the Secretary determines to be consistent with the 
percentages applied with respect to Export Credit Understanding 
vessels and Shipbuilding Agreement vessels under subsections 
(b)(5) and (i)(2).

SEC. 1104B. FINANCING CONTRACT FOR CONSTRUCTION OR RECONSTRUCTION OF 
                    COMMERCIAL VESSEL; VESSEL REPLACEMENT GUARANTEE 
                    FUND (46 APP. U.S.C. 1274A(B) (1994)).

           * * * * * * *
    (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[.], 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. With 
        respect to integrated tug-barges, the Secretary shall 
        establish by rule, regulation, or procedure a uniform 
        percentage that the Secretary determines to be 
        consistent with the percentages applied with respect to 
        Export Credit Understanding vessels and Shipbuilding 
        Agreement vessels pursuant to the preceding sentence.

                                 

                                     
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