[Federal Register Volume 60, Number 1 (Tuesday, January 3, 1995)]
[Rules and Regulations]
[Pages 6-18]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-32126]



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INTERNATIONAL TRADE COMMISSION

19 CFR Part 206


Implementing Rules for the Uruguay Round Agreements Act

AGENCY: United States International Trade Commission.

ACTION: Interim rules with request for comment.

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SUMMARY: The Commission is amending its Rules of Practice and Procedure 
to conform with amendments made to sections 201-204 of the Trade Act of 
1974 by the Uruguay Round Agreements Act. The amendments, among other 
things, conform U.S. law with the Uruguay Round Agreement on Safeguards 
and provide for limited disclosure of confidential business information 
under administrative protective order.

DATES: The interim amendment to section 206.17 is effective January 3, 
1995. All other amendments are effective on January 1, 1995, the date 
on which the World Trade Organization (WTO) Agreement enters into force 
with respect to the United States, unless the United States Trade 
Representative announces prior to that date that the WTO Agreement will 
not enter into force on that date. Should the effective date of such 
other amendments not be January 1, 1995, the Commission will publish 
notice to such effect in the Federal Register.
    To be assured of consideration, written comments must be received 
not later than April 3, 1995.

ADDRESSES: A signed original and 14 copies of each set of comments, 
along with a cover letter addressed to Donna R. Koehnke, Secretary, 
should be sent to the Commission, 500 E Street SW., room 112, 
Washington, D.C. 20436.

FOR FURTHER INFORMATION CONTACT: William Gearhart, Office of General 
Counsel, U.S. International Trade Commission [202-205-3091]. Hearing 
impaired individuals are advised that information on this matter can be 
obtained by contacting the Commission's TDD terminal on 202-205-1810.

SUPPLEMENTARY INFORMATION:

Background

    The Uruguay Round Agreement on Safeguards sets out specific 
conditions and rules for taking safeguard actions under the GATT 1947 
safeguards provision, article XIX. Article XIX permits a country to 
impose import restrictions when increased imports are found to cause or 
threaten to cause [[Page 7]] serious injury to a domestic industry, but 
otherwise provides few rules with respect to the circumstances under 
which such restrictions may be imposed and for how long. The new 
Agreement on Safeguards provides additional guidance on how and when 
safeguard measures may be applied. Among other things, it requires that 
contracting parties follow procedures to ensure transparency (including 
a public investigation and published report); limits measures to an 8-
year maximum duration; requires progressive liberalization of safeguard 
measures; and provides for expedited procedures that may be applied in 
``critical circumstances,'' including special provisions for 
proceedings concerning imports of perishable products. It also provides 
that for the first 3 years of any safeguard measure put in place to 
counter an absolute increase in imports, the exporting countries may 
not impose trade retaliation.
    Sections 201-204 of the Trade Act of 1974 (Trade Act) implement 
article XIX in the United States. U.S. law was already largely 
consistent with the Agreement on Safeguards, and therefore only minor 
statutory changes were necessary to bring U.S. law into conformity with 
the Agreement. U.S. law and practice, in fact, served as a model for 
the drafters of the Agreement.
    Subtitle A of title III of the Uruguay Round Agreements Act (URAA) 
amends sections 201-204 of the Trade Act to bring them into conformity 
with the Agreement on Safeguards. Section 301 of the URAA implements 
provisions of the Agreement that relate to investigations and 
determinations by the United States International Trade Commission 
(Commission) under section 202 of the Trade Act. Section 301 also 
amends section 202 to require the Commission to promulgate regulations 
to provide for limited disclosure of confidential business information 
under an administrative protective order in the course of 
investigations under section 202 of the Trade Act. Section 302 of the 
URAA implements provisions of the Agreement that relate to (1) actions 
by the President under section 203 of the Trade Act after he receives 
an affirmative Commission determination; and (2) Commission monitoring 
reports and investigations and determinations under section 204 of the 
Trade Act concerning extension of relief.
    The amendments to these rules bring Commission procedures into 
conformity with the amendments to sections 202 and 204 of the Trade 
Act. The amendments to the rules--
    (1) provide for the submission by parties of nonconfidential 
summaries of confidential business information and state the 
circumstances under which the Commission may disregard the submission 
if such summary is not provided;
    (2) require petitioners to include within their petition 
information with regard to productivity;
    (3) incorporate the new limitations in section 202(h) of the Trade 
Act concerning investigations with respect to articles the subject of a 
prior relief action or articles subject to the Textiles Agreement;
    (4) provide for limited disclosure of confidential business 
information under administrative protective order;
    (5) revise the time for making determinations and reports when 
critical circumstances are alleged;
    (6) adjust the time for Commission monitoring reports; and (7) 
provide procedures for investigations and determinations concerning 
extension of relief actions.

Implementation of Interim Rules

    Section 335 of the Tariff Act of 1930 (19 U.S.C. Sec. 1335) 
authorizes the Commission to adopt such reasonable procedures and rules 
and regulations as it deems necessary to carry out its functions and 
duties. Additionally, section 103(a) of the URAA specifies that 
appropriate officers of the United States Government may issue such 
regulations as may be necessary to ensure that any provision of that 
act, or amendment made by the act, is appropriately implemented on the 
effective date of that act, and section 103(b) of the URAA directs that 
any interim regulations necessary or appropriate to carry out any 
action proposed in the Statement of Administrative Action approved 
under section 101(a) of the URAA to implement an agreement described in 
section 101(d)(7), (12), or (13) of the URAA be issued not later than 1 
year after the date on which the agreement enteres into force with 
respect to the United States. Section 301(b) directs the Commission to 
promulgate regulations providing for the limited disclosure of 
confidential business information under administrative protective order 
in investigations under section 202 of the Trade Act, and the Statement 
of Administrative Action directs that the Commission promulgate interim 
regulations providing for such disclosure as soon as practicable.
    Commission rules to implement new legislation ordinarily are 
promulgated in accordance with the rulemaking provisions of section 553 
of the Administrative Procedure Act (APA) (5 U.S.C. Sec. 551 et seq.), 
which entails the following steps: (1) publication of a notice of 
proposed rulemaking; (2) solicitation of public comment on the proposed 
rules; (3) Commission review of such comments prior to developing final 
rules; and (4) publication of the final rules thirty days prior to 
their effective date. See 5 U.S.C. Sec. 553. That procedure could not 
be utilized in this instance because the new legislation was enacted on 
December 8, 1994, and became effective, with respect to the amendment 
to section 202 of the Trade Act providing for limited disclosure of 
confidential business information under administrative protective 
order, on the date of enactment, and in other respects was expected to 
become effective on January 1, 1995. Consequently, it was not possible 
to complete the section 553 rulemaking procedure prior to the effective 
date of the new legislation.
    The Commission thus has determined to adopt interim rules that will 
go into effect when the provisions of the URAA amending sections 201-
204 of the Trade Act become effective. These rules will remain in 
effect until the Commission can adopt final rules promulgated in 
accordance with the usual notice and advance publication procedure for 
issuing such rules, taking into account any comments received in 
response to this notice.
    The Commission's authority to adopt interim rules without following 
all steps listed in section 553 of the APA is derived from three 
sources: (1) section 335 of the Act (19 U.S.C. Sec. 1335); (2) sections 
103 and 301(b) of the URAA, and the Statement of Administrative Action 
approved by the URAA; and (3) provisions of section 553 of the APA 
which allow an agency to dispense with various steps in the prescribed 
rulemaking procedure under certain circumstances. Because these interim 
rules comprehensively implement the rules changes required by the URAA, 
no additional notice of proposed rulemaking is necessary or 
contemplated at this time. However, as stated above, the public is 
invited to submit written comments to the Commission for the 
Commission's consideration in preparing final rules. To be assured of 
consideration, such comments should be received by the Commission not 
later than 90 days after publication of this notice in the Federal 
Register.
    The Commission has determined that the need for interim rules is 
clear in this instance. The Commission notes that the new legislation 
alters practice and procedure in proceedings under sections 201-204 of 
the Trade Act, and [[Page 8]] that the existing Commission rules do not 
encompass certain procedures required by the new legislation. The 
Commission finds that rulemaking is essential for the orderly 
administration of sections 201-204 of the Trade Act as amended by the 
new legislation. Furthermore, since the legislation becomes effective 
very shortly after enactment, the Commission has concluded that interim 
implementing rules should be in place as soon as practicable following 
the effective date of the new statute.
    The Commission notes that an agency may dispense with publication 
of a notice of proposed rulemaking when the following circumstances 
exist: (1) the proposed rules are interpretive rules, general 
statements of policy, or rules of agency organization, procedure or 
practice; or (2) the agency for good cause finds that notice and public 
comment thereon are impracticable, unnecessary, or contrary to the 
public interest, and that finding (and the reasons therefor) are 
incorporated into the rules adopted by the agency. 5 U.S.C. 
Sec. 553(b). An agency may also dispense with the publication of a 
notice of final rules thirty days prior to their effective date if (1) 
the rules are interpretive rules of statements of policy or (2) the 
agency finds that ``good cause'' exists for not meeting the advance 
publication requirement and that finding is published along with the 
rule. 5 U.S.C. Sec. 553(d)(3).
    In this instance, the Commission has determined that the requisite 
circumstances existed for dispensing with the notice, comment, and 
advance publication procedure that ordinarily precedes the adoption of 
Commission rules. For purposes of invoking the section 553(b) exemption 
from publishing a notice of proposed rulemaking which solicits public 
comment, the Commission finds that (1) the interim rules are ``agency 
rules of procedure or practice''; and (2) because the new legislation 
becomes effective on the date of enactment in the case of the 
administrative protective order provision, and is projected to become 
effective within 1 month in the case of the other provisions, it 
clearly would be ``impracticable'' for the Commission to comply with 
the usual notice, comment, and advance publication procedure. For the 
purpose of invoking the section 553(d)(3) exemption from publishing 
advance notice of the interim rules thirty days prior to their 
effective date, the Commission finds that the fact that the new 
legislation either becomes effective on the date of enactment or is 
expected to become effective within 1 month after enactment makes such 
advance publication impossible and constitutes ``good cause'' for the 
Commission not to comply with that requirement.
    The Commission recognizes that interim regulations should not 
respond to anything more than the exigencies created by the new 
legislation. Having been promulgated in response to exigencies created 
by the new legislation, each interim rule accordingly comes under one 
or more of the following categories:
    (1) revision of a pre-existing rule that conflicted with the new 
legislation;
    (2) a technical amendment to make a pre-existing rule conform to 
the language of the new legislation;
    (3) rewording of a pre-existing rule to avoid confusion about how 
the rule is to be applied in light of the new legislation; or
    (4) a new rule covering a matter provided for in the new 
legislation but not covered by a pre-existing rule.
    Because the interim regulations merely respond to exigencies 
created by the new legislation, the Commission has further determined 
that they do not meet the criteria described in section 3(f) of 
Executive Order (EO) 12866 (58 FR 51735, Oct. 4, 1993) and do not 
constitute a significant regulatory action for purposes of the EO.
    In accordance with the Regulatory Flexibility Act (5 U.S.C. 
Sec. 601 note), the Commission hereby certifies pursuant to 5 U.S.C. 
Sec. 605(b) that the rules set forth in this notice are not likely to 
have a significant impact on a substantial number of small business 
entities. In any event, the Regulatory Flexibility Act is inapplicable 
to this rulemaking because it is not one in which a notice of proposed 
rulemaking is required under 5 U.S.C. Sec. 553(b).

Explanation of Proposed Amendments

    Section 206.2, which provides for the identification of type of 
petition or request, is amended to include a reference to petitions for 
extension of relief actions filed under section 204(c) of the Trade Act 
and Subpart F of Part 206 of the Commission's rules. Section 302(d) of 
the URAA amends section 204 to provide for the filing of such 
petitions.
    Section 206.3, concerning institution of investigations, 
publication of notice, and availability of petitions for public 
inspection, is revised to add subheadings and to indicate that there 
are exceptions to the general rule that the Commission will institute 
an investigation after receipt of a petition--namely, as set out in 
section 206.15(b).
    Section 206.5, concerning public hearings, is amended by adding a 
new paragraph (c) to state that the Commission will hold a public 
hearing in connection with each investigation under Subpart F of Part 
206 of the Commission's rules concerning whether an action taken by the 
President under section 203 of the Trade Act should be extended. 
Section 204(c) of the Trade Act, as amended by section 302(d) of the 
URAA, requires that the Commission hold a public hearing in connection 
with each such investigation. Current paragraph (c) of rule section 
206.5 is redesignated as paragraph (d). Two minor editorial changes are 
made in paragraphs (a) and (d).
    Section 206.6, concerning Commission reports to the President, is 
amended by adding new subheadings and redesignating paragraphs, and by 
adding language to clarify what information will be included in all 
Commission reports to the President under Part 206, and what additional 
findings and information will be included in reports containing 
determinations under section 202(b) of the Trade Act and section 302(b) 
of the North American Free Trade Agreement Implementation Act.
    Section 206.7, concerning confidential business information, is 
retitled and subdivided into two paragraphs. Paragraph (a) largely 
tracks the current rule and states that the Commission will not release 
confidential business information except under the circumstances 
indicated. Language is added to provide notice that the Commission, 
when appropriate, will include confidential business information in 
reports furnished to the President; this language reflects longstanding 
Commission practice, and Commission questionnaires issued in connection 
with investigations under section 202 of the Trade Act routinely 
provide notice of this possibility. Paragraph (b) is new. It requires, 
except as the Commission may otherwise provide, that parties submitting 
confidential business information must also submit nonconfidential 
summaries of such information. It further states the circumstances 
under which the Commission may disregard the information when the party 
does not provide a summary. Section 301(a) of the URAA amended section 
202(a)(8) of the Trade Act to provide that the Commission may request 
that parties furnish such summaries and to authorize the Commission to 
disregard a confidential submission when it finds that a request for 
confidentiality is not warranted and the party concerned is either 
unwilling to make the information public or to authorize its 
[[Page 9]] disclosure in generalized or summarized form.
    Section 206.8 is new, and has been added to provide a general 
service, filing, and certification requirement to supplement the more 
specific service and filing requirements in new Sec. 206.17 of these 
rules relating to documents subject to disclosure under administrative 
protective order. New Sec. 206.8 parallels Sec. 207.3 of current 
Commission rules, which performs a similar function in conjunction with 
Sec. 207.7 of the rules. The Commission traditionally has provided for 
service of documents in investigations covered by this Part 206 in its 
notices of investigation published in the Federal Register. However, 
the Commission believes that the inclusion of specific requirements in 
Sec. 206.17 for documents subject to an administrative protective order 
without including requirements of general application may give rise to 
confusion on the part of submitters of documents as to applicable 
Commission requirements. In general, new Sec. 206.8 reflects current 
Commission practice in investigations under Part 206, and would be made 
applicable to all investigations conducted under this part.
    Section 206.12, concerning definitions applicable to Subpart B of 
Part 206 of the Commission's rules, is amended to delete paragraphs (c) 
and (d), which provide cross references to the statutory provisions 
where the terms ``critical circumstances'' and ``perishable 
agricultural product'' are defined. Because of amendments made by 
section 301(d) of the URAA to the critical circumstances provision in 
section 202, the cross reference in paragraph (c) is no longer 
accurate. However, the inclusion of cross references was viewed as 
unnecessary.
    Section 206.13, concerning who may file a petition, has been 
divided. As amended, it contains the text of what was formerly 
paragraph (a). The text formerly in paragraphs (b) and (c) of that 
section, which described two circumstances under which the Commission 
would not institute an investigation after receipt of a petition, was 
moved to new section 206.15, relating to institution of investigations, 
where it was combined with two additional circumstances.
    Section 206.14, concerning contents of petitions, is amended in 
three respects. First, in the introductory paragraph, wording is added 
that directs petitioners, in stating whether provisional relief is 
sought, to state whether they are asserting that critical circumstances 
exist. Second, paragraph (e)(2)(i) is amended to include 
``productivity'' in the list of economic factors relating to threat of 
injury for which a petitioner is directed to provide data in its 
petition. Section 301(e)(1) of the URAA added ``productivity'' to the 
list of economic factors in section 202(c)(1)(B)(i) of the Trade Act 
that the Commission is to take into account in determining whether an 
industry is threatened with serious injury. Third, paragraph (j), which 
describes the information to be provided in a petition when critical 
circumstances are alleged, is amended to reflect the new statutory 
standard relating to the critical circumstances in amended section 
202(d)(2) of the Trade Act.
    Section 206.15, concerning institution of an investigation, is a 
new rule. Paragraph (a) sets forth the general rule that the Commission 
will institute an investigation after receiving a petition, otherwise 
properly filed, under Subpart B of Part 206 of the rules. Paragraph (b) 
sets out four circumstances in which the Commission will not institute 
an investigation. These follow the limitations on Commission 
investigations set forth in section 202(h) of the Trade Act. Section 
301(f) of the URAA amended section 202(h) to, among other things, 
clarify when a product subject to the WTO Agreement on Textiles and 
Clothing will become eligible for a Commission safeguard investigation.
    Current rule section 206.15, which concerns industry adjustment 
plans and commitments, is redesignated as section 206.16, and current 
rule sections 206.16 and 206.17 are redesignated as sections 206.18 and 
206.19, respectively.
    Section 206.17, which sets forth rules for providing limited 
disclosure of confidential business information under administrative 
protective order, is new. Section 301(b) of the URAA amended section 
202 of the Trade Act to add a new subsection (i) that requires the 
Commission to promulgate regulations to provide for disclosure of 
confidential business information, under an administrative protective 
order, to authorized representatives of interested parties who are 
parties to an investigation under section 202. The Statement of 
Administrative Action approved by the URAA states that it is expected 
that the Commission regulations will generally parallel the appropriate 
provisions of section 777 of the Tariff Act of 1930 (19 U.S.C. 1677f) 
and the regulations issued under that section. New section 206.17 is 
modeled after Commission rule section 207.7, which sets forth rules 
providing for limited disclosure of confidential business information 
under administrative protective order in Commission investigations 
under the antidumping and countervailing duty laws in the Tariff Act of 
1930. Section 206.17 includes wording that parallels amendments to 
section 207.7 of the rules scheduled to become effective on or about 
January 27, 1995. The term ``confidential business information'' is 
substituted for the term ``business proprietary information,'' and 
certain other changes are made to reflect the differences between the 
two statutes. The definition of ``interested parties'' in paragraph 
(a)(3)(iii) is based on that found in section 771(9) of the Tariff Act 
of 1930 (19 U.S.C. 1677(9)).
    Section 206.18 (formerly designated as section 206.16), which sets 
forth the times for Commission determinations and reports under Subpart 
B, is amended to reflect the new statutory times for determinations and 
reports when critical circumstances are alleged. As provided under 
section 202(d)(2) of the Trade Act, as amended by section 301(d) of the 
URAA, the Commission is required to make a critical circumstances 
determination within 60 days of the filing of a petition alleging such 
circumstances. When critical circumstances are alleged, the Commission 
will commence the regular 120-day injury phase of its investigation 
only after it completes the 60-day critical circumstances phase, and 
the Commission will submit its report on its investigation to the 
President not later than 240 days after the petition was filed, the 
request or resolution received, or the motion adopted.
    Section 206.34, which sets forth the requirements concerning the 
contents of a petition filed under Subpart D of Part 206 with regard to 
imports from a NAFTA country, is amended in three respects. First, in 
the introductory paragraph, language is added that directs petitioners, 
in stating whether provisional relief is sought, to state whether they 
are asserting that critical circumstances exist. Second, paragraph 
(e)(2)(i) is amended to include ``productivity'' in the list of 
economic factors for which a petitioner is directed to provide data in 
its petition. Third, paragraph (i), which describes the information to 
be provided in a petition when critical circumstances are alleged, is 
amended to reflect the new statutory standard relating to the critical 
circumstances. These changes parallel changes made in section 206.14 of 
these rules with respect to petitions filed under Subpart B of Part 
206. Section 302(c) of the NAFTA Implementation Act (19 U.S.C. 3352(c)) 
makes applicable to investigations conducted by the Commission under 
section 302(b) of the NAFTA Implementation Act the [[Page 10]] factors 
applied in making determinations set forth in section 202(c) of the 
Trade Act and the provisional relief provisions in section 202(d) of 
the Trade Act.
    Section 206.35, which sets forth the times for Commission 
determinations and reports under Subpart D with respect to imports from 
a NAFTA country, is amended at paragraph (c) to reflect the change in 
time for making and reporting determinations concerning whether 
critical circumstances exist.
    Section 206.52, concerning monitoring, is amended to reflect the 
change in timing of Commission monitoring reports under section 204(a) 
of the Trade Act. Section 204(a), as amended by section 302(c)(1) of 
the URAA, requires the Commission to submit reports on monitoring at 
the mid-point of the initial period of relief or any extension thereof, 
provided that the initial period of relief or the extension exceeds 3 
years in duration.
    Section 206.53, concerning investigations to provide certain 
probable economic effect advice to the President, is amended to delete 
reference to the term ``extension,'' to reflect deletion of this term 
from section 204(b) of the Trade Act by section 302(c)(2) of the URAA.
    Section 206.54 is new and provides for Commission investigations 
and determinations with respect to extension of relief actions in 
response to a request or petition under amended section 204(c) of the 
Trade Act. Section 204(c) of the Trade Act, as amended by section 
302(d)(2) of the URAA, provides that the Commission, upon the request 
of the President or upon petition by the concerned industry, is to 
investigate to determine whether action under section 203 of the Trade 
Act continues to be necessary to prevent or remedy serious injury and 
whether there is evidence that the industry is making a positive 
adjustment to import competition. Industry petitions must be filed not 
earlier than 9 months or later than 6 months before action under 
section 203 is to terminate. The Commission is required to hold a 
public hearing in the course of its investigation and to transmit its 
report to the President not later than 60 days before the action under 
section 203 is due to terminate, unless the President specifies a 
different date. The rule provides for the institution of 
investigations, states who may file a petition and when, describes the 
information to be included in a petition, states when the Commission 
will make its report to the President, and states that the Commission 
will make its report available to the public (with the exception of 
confidential business information). Section 206.5(c) of these rules 
states that the Commission will hold a public hearing in connection 
with each investigation under section 204(c) of the Trade Act.
    Section 206.54 also provides for the limited disclosure under 
administrative protective order of confidential business information in 
the same manner as provided under section 206.17 of these rules.
    Former section 206.54, which concerns investigations to evaluate 
the effectiveness of relief, has been redesignated as section 206.55.

List of Subjects in 19 CFR Part 206

    Administrative practice and procedure, Investigations, Imports.

PART 206--[AMENDED]

    19 CFR Part 206 is amended as follows:
    1. The authority citation for Part 206 is revised to read as 
follows:

    Authority: 19 U.S.C. 1335, 2251-2254, 3351-3382; secs. 103, 301-
302, Pub. L. 103-465, 108 Stat. 4809.

    2. Subpart A is revised to read as follows:

Subpart A--General

206.2  Identification of type of petition or request.
206.3  Institution of investigations; publication of notice; 
availability of petition for public inspection.
206.4  Notification of other agencies.
206.5  Public hearing.
206.6  Report to the President.
206.7  Confidential business information; furnishing of 
nonconfidential summaries thereof.
206.8  Service, filing, and certification of documents.

Subpart A--General


Sec. 206.2  Identification of type of petition or request.

    An investigation under this Part 206 may be commenced on the basis 
of a petition, request, resolution, or motion described in section 
202(a)(1), 204(c)(1), or 406(a)(1) of the Trade Act of 1974 or section 
302(a)(1) or 312(c)(1) of the North American Free Trade Agreement 
Implementation Act. Each petition or request, as the case may be, filed 
by an entity representative of a domestic industry under this Part 206 
shall state clearly on the first page thereof ``This is a [petition or 
request] under section [202, 204(c), or 406 of the Trade Act of 1974, 
or section 302 or 312(c) of the North American Free Trade Agreement 
Implementation Act] and Subpart [B, C, D, E, or F] of Part 206 of the 
rules of practice and procedure of the United States International 
Trade Commission''.


Sec. 206.3  Institution of investigations; publication of notice; 
availability of petition for public inspection.

    (a) Institution of investigation and publication of notice. Except 
as provided in Sec. 206.15(b), the Commission, after receipt of a 
petition or request under Part 206, properly filed, will promptly 
institute an appropriate investigation and publish notice thereof in 
the Federal Register.
    (b) Contents of notice. The notice will identify the petitioner or 
other requestor, the imported article that is the subject of the 
investigation and its tariff subheading, the nature and timing of the 
determination to be made, the time and place of any public hearing, 
dates of deadlines for filing briefs, statements, and other documents, 
the place at which the petition or request and any other documents 
filed in the course of the investigation may be inspected, and the 
name, address, and telephone number of the office that may be contacted 
for more information.
    (c) Availability for public inspection. The Commission will 
promptly make such petition or request available for public inspection 
(with the exception of confidential business information).


Sec. 206.4  Notification of other agencies.

    The Commission will promptly transmit copies of petitions or 
requests filed and notification of investigations instituted to the 
Office of the United States Trade Representative (hereinafter USTR), 
the Secretary of Commerce, the Secretary of Labor, and other Federal 
agencies directly concerned.


Sec. 206.5  Public hearing.

    (a) Investigations under subpart B of this part. A public hearing 
on the question of injury and a second public hearing on remedy (if 
necessary) will be held in connection with each investigation 
instituted under Subpart B of this Part after reasonable notice thereof 
has been caused to be published in the Federal Register. A hearing on 
remedy is not necessary if the Commission has made a negative 
determination on the question of injury.
    (b) Investigations under subparts C, D, and E of this part. A 
public hearing on the subject of injury and remedy will be held in 
connection with each investigation instituted under subparts C, D, and 
E of this part after reasonable notice thereof has been published in 
the Federal Register.
    (c) Investigations under subpart F of this part. A public hearing 
on the subject of whether an action taken [[Page 11]] under section 203 
of the Trade Act of 1974 should be extended will be held in connection 
with each investigation instituted under subpart F of this part after 
reasonable notice thereof has been published in the Federal Register.
    (d) Opportunity to appear and to cross-question. All interested 
parties and consumers, including any association representing the 
interests of consumers, will be afforded an opportunity to be present, 
to present evidence, to comment on the adjustment plan, if any, 
submitted in the case of an investigation under section 202(b) of the 
Trade Act of 1974, and to be heard at such hearings. All interested 
parties and consumers, including any association representing the 
interests of consumers, will be afforded an opportunity to cross-
question interested parties making presentations at the hearing.


Sec. 206.6  Report to the President.

    (a) In general. The Commission will include in its report to the 
President the following:
    (1) The determination made and an explanation of the basis for the 
determination;
    (2) If the determination is affirmative, to the extent appropriate, 
the recommendations for action and an explanation of the basis for each 
recommendation;
    (3) Any dissenting or separate views by members of the Commission 
regarding the determination and any recommendations;
    (b) Additional findings and information.
    (1) In the case of a determination made under section 202(b) of the 
Trade Act, the Commission will also include in its report the 
following:
    (i) The findings with respect to the results of an examination of 
the factors other than imports which may be a cause of serious injury 
or threat thereof to the domestic industry;
    (ii) A copy of the adjustment plan, if any, submitted by the 
petitioner;
    (iii) Commitments submitted and information obtained by the 
Commission regarding steps that firms and workers in the domestic 
industry are taking, or plan to take, to facilitate positive adjustment 
to import competition;
    (iv) A description of the short- and long-term effects that 
implementation of the action recommended is likely to have on the 
petitioning domestic industry, other domestic industries, and 
consumers; and
    (v) A description of the short- and long-term effects of not taking 
the recommended action on the petitioning domestic industry, its 
workers and communities where production facilities of such industry 
are located, and other domestic industries.
    (2) In the case of a determination made under section 302(b) of the 
NAFTA Implementation Act, the Commission will also include in its 
report the findings with respect to the results of an examination of 
the factors other than imports which may be a cause of serious injury 
or threat thereof to the domestic industry.


Sec. 206.7  Confidential business information; furnishing of 
nonconfidential summaries thereof.

    (a) Nonrelease of information. Except as provided for in 
Sec. 206.17, in the case of an investigation under Subpart B, C, D, or 
F of this Part, the Commission will not release information which the 
Commission considers to be confidential business information within the 
meaning of Sec. 201.6 unless the party submitting the confidential 
business information had notice, at the time of submission, that such 
information would be released by the Commission, or such party 
subsequently consents to the release of the information. When 
appropriate, the Commission will include confidential business 
information in reports transmitted to the President and the Trade 
Representative; such reports will be marked as containing confidential 
business information, and a nonconfidential version of such report will 
be made available to the public.
    (b) Nonconfidential summaries. Except as the Commission may 
otherwise provide, a party submitting confidential business information 
shall also submit to the Commission, at the time it submits such 
information, a nonconfidential summary of the information. If a party 
indicates that the confidential business information cannot be 
summarized, it shall state in writing the reasons why a summary cannot 
be provided. If the Commission finds that a request for confidentiality 
is not warranted and if the party concerned is either unwilling to make 
the information public or to authorize its disclosure in generalized or 
summarized form, the Commission may disregard the submission.


Sec. 206.8  Service, filing, and certification of documents.

    (a) Certification. Any person submitting factual information on 
behalf of the petitioner or any other interested party for the 
consideration of the Commission in the course of an investigation to 
which this part pertains, and any person submitting a response to a 
Commission questionnaire issued in connection with an investigation to 
which this part pertains, must certify that such information is 
accurate and complete to the best of the submitter's knowledge.
    (b) Service. Any party submitting a document for the consideration 
of the Commission in the course of an investigation to which this part 
pertains shall, in addition to complying with Sec. 201.8 of this 
chapter, serve a copy of the public version of such document on all 
other parties to the investigation in the manner prescribed in 
Sec. 201.16 of this chapter, and, when appropriate, serve a copy of the 
confidential version of such document in the manner provided for in 
Sec. 206.17(f). If a document is filed before the Secretary's issuance 
of the service list provided for in Sec. 201.11 of this chapter or the 
administrative protective order list provided for in Sec. 206.17, the 
document need not be accompanied by a certificate of service, but the 
document shall be served on all appropriate parties within two (2) days 
of the issuance of the service list or the administrative protective 
order list and a certificate of service shall then be filed. 
Notwithstanding Sec. 201.16 of this chapter, petitions, briefs, and 
testimony filed by parties shall be served by hand or, if served by 
mail, by overnight mail or its equivalent. Failure to comply with the 
requirements of this rule may result in removal from status as a party 
to the investigation. The Commission shall make available, upon 
request, to all parties to the investigation a copy of each document, 
except transcripts of hearings, confidential business information, 
privileged information, and information required to be served under 
this section, placed in the docket file of the investigation by the 
Commission.
    (c) Filing. Documents to be filed with the Commission must comply 
with applicable rules, including Sec. 201.8 of this chapter. If the 
Commission establishes a deadline for the filing of a document, and the 
submitter includes confidential business information in the document, 
the submitter is to file and, if the submitter is a party, serve the 
confidential version of the document on the deadline and may file and 
serve the nonconfidential version of the document no later than one 
business day after the deadline for filing the document. The 
confidential version shall enclose all confidential business 
information in brackets and have the following warning marked on every 
page: ``Bracketing of CBI not final for one business day after date of 
filing.'' The bracketing becomes final one business day after the date 
of filing of the document, i.e., at the same time as [[Page 12]] the 
nonconfidential version of the document is due to be filed. Until the 
bracketing becomes final, recipients of the document may not divulge 
any part of the contents of the document to anyone not subject to the 
administrative protective order issued in the investigation. If the 
submitter discovers it has failed to bracket correctly, the submitter 
may file a corrected version or portion of the confidential document at 
the same time as the nonconfidential version is filed. No changes to 
the document other than bracketing and deletion of confidential 
business information are permitted after the deadline. Failure to 
comply with this paragraph may result in the striking of all or a 
portion of a submitter's document.
    3. Subpart B is revised to read as follows:

Subpart B--Investigations Relating to Global Safeguard Actions

206.11  Applicability of Subpart.
206.12  Definitions applicable to Subpart B of this part.
206.13  Who may file a petition.
206.14  Contents of petition.
206.15  Institution of investigation.
206.16  Industry adjustment plan and commitments.
206.17  Limited disclosure of certain confidential business 
information under administrative protective order.
206.18  Time for determinations, reporting.
206.19  Public report.

Subpart B--Investigations Relating to Global Safeguard Actions


Sec. 206.11  Applicability of subpart.

    This subpart B applies specifically to investigations under section 
202(b) of the Trade Act. For other applicable rules, see subpart A of 
this part and part 201 of this chapter.


Sec. 206.12  Definitions applicable to subpart B of this part.

    For the purposes of this Subpart, the following terms have the 
meanings hereby assigned to them:
    (a) Adjustment plan means a plan to facilitate positive adjustment 
to import competition submitted by a petitioner to the Commission and 
USTR either with the petition or at any time within 120 days after the 
date of filing of the petition.
    (b) Commitment means commitments that a firm in the domestic 
industry, a certified or recognized union or group of workers in the 
domestic industry, a local community, a trade association representing 
the domestic industry, or any other person or group of persons submits 
to the Commission regarding actions such persons and entities intend to 
take to facilitate positive adjustment to import competition.


Sec. 206.13  Who may file a petition.

    A petition under this Subpart B may be filed by an entity, 
including a trade association, firm, certified or recognized union, or 
group of workers, that is representative of a domestic industry 
producing an article like or directly competitive with a foreign 
article that is allegedly being imported into the United States in such 
increased quantities as to be a substantial cause of serious injury, or 
the threat thereof, to such domestic industry.


Sec. 206.14  Contents of petition.

    A petition under this Subpart B shall include specific information 
in support of the claim that an article is being imported into the 
United States in such increased quantities as to be a substantial cause 
of serious injury, or the threat thereof, to the domestic industry 
producing an article like or directly competitive with the imported 
article. Such petition shall state whether provisional relief is sought 
because critical circumstances exist or because the imported article is 
a perishable agricultural product. In addition, such petition shall 
include the following information, to the extent that such information 
is available from governmental or other sources, or best estimates and 
the basis therefor if such information is not available:
    (a) Product description. The name and description of the imported 
article concerned, specifying the United States tariff provision under 
which such article is classified and the current tariff treatment 
thereof, and the name and description of the like or directly 
competitive domestic article concerned;
    (b) Representativeness. (1) The names and addresses of the firms 
represented in the petition and/or the firms employing or previously 
employing the workers represented in the petition and the locations of 
their establishments in which the domestic article is produced;
    (2) The percentage of domestic production of the like or directly 
competitive domestic article that such represented firms and/or workers 
account for and the basis for claiming that such firms and/or workers 
are representative of an industry; and
    (3) The names and locations of all other producers of the domestic 
article known to the petitioner;
    (c) Import data. Import data for at least each of the most recent 5 
full years which form the basis of the claim that the article concerned 
is being imported in increased quantities, either actual or relative to 
domestic production;
    (d) Domestic production data. Data on total U.S. production of the 
domestic article for each full year for which data are provided 
pursuant to paragraph (c) of this section;
    (e) Data showing injury. Quantitative data indicating the nature 
and extent of injury to the domestic industry concerned:
    (1) With respect to serious injury, data indicating:
    (i) A significant idling of production facilities in the industry, 
including data indicating plant closings or the underutilization of 
production capacity;
    (ii) The inability of a significant number of firms to carry out 
domestic production operations at a reasonable level of profit; and
    (iii) Significant unemployment or underemployment within the 
industry; and/or
    (2) With respect to the threat of serious injury, data relating to:
    (i) A decline in sales or market share, a higher and growing 
inventory (whether maintained by domestic producers, importers, 
wholesalers, or retailers), and a downward trend in production, 
profits, wages, productivity, or employment (or increasing 
underemployment);
    (ii) The extent to which firms in the industry are unable to 
generate adequate capital to finance the modernization of their 
domestic plants and equipment, or are unable to maintain existing 
levels of expenditures for research and development;
    (iii) The extent to which the U.S. market is the focal point for 
the diversion of exports of the article concerned by reason of 
restraints on exports of such article to, or on imports of such article 
into, third country markets; and
    (3) Changes in the level of prices, production, and productivity.
    (f) Cause of injury. An enumeration and description of the causes 
believed to be resulting in the injury, or threat thereof, described 
under paragraph (e) of this section, and a statement regarding the 
extent to which increased imports, either actual or relative to 
domestic production, of the imported article are believed to be such a 
cause, supported by pertinent data;
    (g) Relief sought and purpose thereof. A statement describing the 
import relief sought, including the type, amount, and duration, and the 
specific purposes therefor, which may include facilitating the orderly 
transfer of resources to more productive pursuits, enhancing 
competitiveness, or other means of adjustment to new conditions of 
competition;
[[Page 13]]

    (h) Efforts to compete. A statement on the efforts being taken, or 
planned to be taken, or both, by firms and workers in the industry to 
make a positive adjustment to import competition.
    (i) Imports from NAFTA countries. Quantitative data indicating the 
share of imports accounted for by imports from each NAFTA country 
(Canada and Mexico), and petitioner's view on the extent to which 
imports from such NAFTA country or countries are contributing 
importantly to the serious injury, or threat thereof, caused by total 
imports of such article.
    (j) Critical circumstances. If the petition alleges the existence 
of critical circumstances, a statement setting forth the basis for the 
belief that there is clear evidence that increased imports (either 
actual or relative to domestic production) of the article are a 
substantial cause of serious injury, or the threat thereof, to the 
domestic industry, and that delay in taking action would cause damage 
to that industry that would be difficult to repair, and a statement 
concerning the provisional relief requested and the basis therefor.


Sec. 206.15  Institution of investigation.

    (a) In general. Except as provided in paragraph (b) of this 
section, the Commission, after receipt of a petition under this Subpart 
B, properly filed, will promptly institute an appropriate investigation 
and will cause a notice thereof to be published in the Federal 
Register.
    (b) Exceptions.
    (1) Reinvestigation within one (1) year. Except for good cause 
determined by the Commission to exist, no new investigation will be 
made under section 202 of the Trade Act with respect to the same 
subject matter as a previous investigation under section 202 unless one 
(1) year has elapsed since the Commission made its report to the 
President of the results of such previous investigation.
    (2) Articles subject to prior action. No new investigation will be 
made under section 202 of the Trade Act with respect to an article that 
is or has been the subject of an action under section 203(a) (3)(A), 
(B), (C), or (E) of the Trade Act if the last day on which the 
President could take action under section 203 of the Trade Act in the 
new investigation is a date earlier than that permitted under section 
203(e)(7) of the Trade Act.
    (3) Articles subject to the Textiles Agreement. No investigation 
will be made under section 202 of the Trade Act with respect to an 
article that is the subject of the WTO Agreement on Textiles and 
Clothing unless the United States has integrated the article into GATT 
1994 and the Secretary of Commerce has published notice to such effect 
in the Federal Register.
    (4) Perishable agricultural product. An entity of the type 
described in Sec. 206.13 that represents a domestic industry producing 
a perishable agricultural product may petition for provisional relief 
with respect to such product only if such product has been subject to 
monitoring by the Commission for not less than 90 days as of the date 
the allegation of injury is included in the petition.


Sec. 206.16  Industry adjustment plan and commitments.

    (a) Adjustment plan. A petitioner may submit to the Commission, 
either with the petition or at any time within 120 days after the date 
of filing of the petition, a plan to facilitate positive adjustment to 
import competition.
    (b) Commitments. If the Commission makes an affirmative injury 
determination, any firm in the domestic industry, certified or 
recognized union or group of workers in the domestic industry, local 
community, trade association representing the domestic industry, or any 
other person or group of persons may, individually, submit to the 
Commission commitments regarding actions such persons and entities 
intend to take to facilitate positive adjustment to import competition.


Sec. 206.17  Limited disclosure of certain confidential business 
information under administrative protective order.

    (a)(1) Disclosure. Upon receipt of a timely application filed by an 
authorized applicant, as defined in paragraph (a)(3) of this section, 
which describes in general terms the information requested, and sets 
forth the reasons for the request (e.g., all confidential business 
information properly disclosed pursuant to this section for the purpose 
of representing an interested party in investigations pending before 
the Commission), the Secretary shall make available all confidential 
business information contained in Commission memoranda and reports and 
in written submissions filed with the Commission at any time during the 
investigation (except privileged information, classified information, 
and specific information of a type which there is a clear and 
compelling need to withhold from disclosure, e.g., trade secrets) to 
the authorized applicant under an administrative protective order 
described in paragraph (b) of this section. The term ``confidential 
business information'' is defined in Sec. 201.6 of this chapter.
    (2) Application. An application under paragraph (a)(1) of this 
section must be made by an authorized applicant on a form adopted by 
the Secretary or a photocopy thereof. An application on behalf of an 
authorized applicant must be made no later than the time that entries 
of appearance are due pursuant to Sec. 201.11 of this chapter. In the 
event that two or more authorized applicants represent one interested 
party who is a party to the investigation, the authorized applicants 
must select one of their number to be lead authorized applicant. The 
lead authorized applicant's application must be filed no later than the 
time that entries of appearance are due. Provided that the application 
is accepted, the lead authorized applicant shall be served with 
confidential business information pursuant to paragraph (f) of this 
section. The other authorized applicants representing the same party 
may file their applications after the deadline for entries of 
appearance but at least five (5) days before the deadline for filing 
posthearing briefs in the investigation, and shall not be served with 
confidential business information.
    (3) Authorized applicant. (i) Only an authorized applicant may file 
an application under this subsection. An authorized applicant is:
    (A) An attorney for an interested party which is a party to the 
investigation;
    (B) A consultant or expert under the direction and control of a 
person under paragraph (a)(3)(i)(A) of this section;
    (C) A consultant or expert who appears regularly before the 
Commission and who represents an interested party which is a party to 
the investigation; or
    (D) A representative of an interested party which is a party to the 
investigation, if such interested party is not represented by counsel.
    (ii) In addition, an authorized applicant must not be involved in 
competitive decisionmaking for an interested party which is a party to 
the investigation. Involvement in ``competitive decisionmaking'' 
includes past, present, or likely future activities, associations, and 
relationships with an interested party which is a party to the 
investigation that involve the prospective authorized applicant's 
advice or participation in any of such party's decisions made in light 
of similar or corresponding information about a competitor (pricing, 
product design, etc.).
    (iii) For purposes of this Sec. 206.17, the term ``interested 
party'' means: [[Page 14]] 
    (A) A foreign manufacturer, producer, or exporter, or the United 
States importer, of an article which is the subject of an investigation 
under this section or a trade or business association a majority of the 
members of which are producers, exporters, or importers of such 
article;
    (B) The government of a country in which such article is produced 
or manufactured;
    (C) A manufacturer, producer, or wholesaler in the United States of 
a like or directly competitive article;
    (D) A certified union or recognized union or group of workers which 
is representative of an industry engaged in the manufacture, 
production, or wholesale of a like or directly competitive article in 
the United States;
    (E) A trade or business association a majority of whose members 
manufacture, produce, or wholesale a like or directly competitive 
article in the United States; and
    (F) An association, a majority of whose members is composed of 
interested parties described in paragraphs (a)(3)(iii) (C), (D), or (E) 
of this section with respect to a like or directly competitive article.
    (4) Forms and determinations. (i) The Secretary may adopt, from 
time to time, forms for submitting requests for disclosure pursuant to 
an administrative protective order incorporating the terms of this 
rule. The Secretary shall determine whether the requirements for 
release of information under this rule have been satisfied. This 
determination shall be made concerning specific confidential business 
information as expeditiously as possible but in no event later than 
fourteen (14) days from the filing of the information, except if the 
submitter of the information objects to its release or the information 
is unusually voluminous or complex, in which case the determination 
shall be made within thirty (30) days from the filing of the 
information. The Secretary shall establish a list of parties whose 
applications have been granted. The Secretary's determination shall be 
final.
    (ii) Should the Secretary determine pursuant to this section that 
materials sought to be protected from public disclosure by a person do 
not constitute confidential business information or were not required 
to be served under paragraph (f) of this section, then the Secretary 
shall, upon request, issue an order on behalf of the Commission 
requiring the return of all copies of such materials served in 
accordance with paragraph (f) of this section.
    (iii) The Secretary shall release confidential business information 
only to an authorized applicant whose application has been accepted and 
who presents the application along with adequate personal 
identification; or a person described in paragraph (b)(1)(iv) of this 
section who presents a copy of the statement referred to in that 
paragraph along with adequate personal identification.
    (b) Administrative protective order. The administrative protective 
order under which information is made available to the authorized 
applicant shall require him to submit to the Secretary a personal sworn 
statement that, in addition to such other conditions as the Secretary 
may require, he shall:
    (1) Not divulge any of the confidential business information 
obtained under the administrative protective order and not otherwise 
available to him, to any person other than
    (i) Personnel of the Commission concerned with the investigation,
    (ii) The person or agency from whom the confidential business 
information was obtained,
    (iii) A person whose application for access to confidential 
business information under the administrative protective order has been 
granted by the Secretary, and
    (iv) Other persons, such as paralegals and clerical staff, who are 
employed or supervised by an authorized applicant; who have a need 
thereof in connection with the investigation; who are not involved in 
competitive decisionmaking on behalf of an interested party which is a 
party to the investigation; and who have submitted to the Secretary a 
signed statement in a form approved by the Secretary that they agree to 
be bound by the administrative protective order (the authorized 
applicant shall be deemed responsible for such persons' compliance with 
the administrative protective order);
    (2) Use such confidential business information solely for the 
purposes of the Commission investigation then in progress;
    (3) Not consult with any person not described in paragraph (b)(1) 
of this section concerning such confidential business information 
without first having received the written consent of the Secretary and 
the party or the attorney of the party from whom such confidential 
business information was obtained;
    (4) Whenever materials (e.g., documents, computer disks, etc.) 
containing such confidential business information are not being used, 
store such material in a locked file cabinet, vault, safe, or other 
suitable container;
    (5) Serve all materials containing confidential business 
information as directed by the Secretary and pursuant to paragraph (f) 
of this section;
    (6) Transmit all materials containing confidential business 
information with a cover sheet identifying the materials as containing 
confidential business information;
    (7) Comply with the provisions of this section;
    (8) Make true and accurate representations in the authorized 
applicant's application and promptly notify the Secretary of any 
changes that occur after the submission of the application and that 
affect the representations made in the application (e.g., change in 
personnel assigned to the investigation);
    (9) Report promptly and confirm in writing to the Secretary any 
breach of the administrative protective order; and
    (10) Acknowledge that breach of the administrative protective order 
may subject the authorized applicant to such sanctions or other actions 
as the Commission deems appropriate.
    (c) Final disposition of material released under administrative 
protective order. At such date as the Secretary may determine 
appropriate for particular data, each authorized applicant shall return 
or destroy all copies of materials released to authorized applicants 
pursuant to this section and all other materials containing 
confidential business information, such as charts or notes based on any 
such information received under administrative protective order, and 
file with the Secretary a certificate attesting to his personal, good 
faith belief that all copies of such material have been returned or 
destroyed and no copies of such material have been made available to 
any person to whom disclosure was not specifically authorized.
    (d) Commission responses to a breach of administrative protective 
order. A breach of an administrative protective order may subject an 
offender to:
    (1) Disbarment from practice in any capacity before the Commission 
along with such person's partners, associates, employer, and employees, 
for up to seven years following publication of a determination that the 
order has been breached;
    (2) Referral to the United States Attorney;
    (3) In the case of an attorney, accountant, or other professional, 
referral to the ethics panel of the appropriate professional 
association;
    (4) Such other administrative sanctions as the Commission 
determines to be appropriate, including public release of or striking 
from the record any information or briefs submitted by, or on behalf 
of, the offender or the party [[Page 15]] represented by the offender, 
denial of further access to confidential business information in the 
current or any future investigations before the Commission, and 
issuance of a public or private letter of reprimand; and
    (5) Such other actions, including but not limited to, a warning 
letter, as the Commission determines to be appropriate.
    (e) Breach investigation procedure. (1) The Commission shall 
determine whether any person has violated an administrative protective 
order, and may impose sanctions or other actions in accordance with 
paragraph (d) of this section. At any time within sixty (60) days of 
the later of
    (i) the date on which the alleged violation occurred or, as 
determined by the Commission, could have been discovered through the 
exercise of reasonable and ordinary care; or
    (ii) the completion of an investigation conducted under this 
subpart, the Commission may commence an investigation of any breach of 
an administrative protective order alleged to have occurred at any time 
during the pendency of the investigation, including all appeals, 
remands, and subsequent appeals. Whenever the Commission has reason to 
believe that a person may have breached an administrative protective 
order issued pursuant to this section, the Secretary shall issue a 
letter informing such person that the Commission has reason to believe 
a breach has occurred and that the person has a reasonable opportunity 
to present his views on whether a breach has occurred. If subsequently 
the Commission determines that a breach has occurred and that further 
investigation is warranted, then the Secretary shall issue a letter 
informing such person of that determination and that the person has a 
reasonable opportunity to present his views on whether mitigating 
circumstances exist and on the appropriate sanction to be imposed, but 
no longer on whether a breach has occurred. Once such person has been 
afforded a reasonable opportunity to present his views, the Commission 
shall determine what sanction if any to impose.
    (2) Where the sanction imposed is a private letter of reprimand, 
the Secretary shall expunge the sanction from the recipient's record 
two (2) years from the date of issuance of the sanction, provided that
    (i) the recipient has not received another unexpunged sanction 
pursuant to this section at any time prior to the end of the two year 
period, and
    (ii) the recipient is not the subject of an investigation for 
possible breach of administrative protective order under this section 
at the end of the two year period.
    Upon the completion of such a pending breach investigation without 
the issuance of a sanction, the original sanction shall be expunged. 
The Secretary shall notify a sanction recipient in the event that the 
sanction is expunged.
    (f) Service. (1) Any party filing written submissions which include 
confidential business information to the Commission during an 
investigation shall at the same time serve complete copies of such 
submissions upon all authorized applicants specified on the list 
established by the Secretary pursuant to paragraph (a)(4) of this 
section, and, except as provided in Sec. 206.8(c), a nonconfidential 
version on all other parties. All such submissions must be accompanied 
by a certificate attesting that complete copies of the submission have 
been properly served. In the event that a submission is filed before 
the Secretary's list is established, the document need not be 
accompanied by a certificate of service, but the submission shall be 
served within two (2) days of the establishment of the list and a 
certificate of service shall then be filed.
    (2) A party may seek an exemption from the service requirement of 
paragraph (f)(1) of this section for particular confidential business 
information by filing a request for exemption from disclosure in 
accordance with paragraph (g) of this section. The Secretary shall 
promptly respond to the request. If a request is granted, the Secretary 
shall accept the information. The party shall file three versions of 
the submission containing the information in accordance with paragraph 
(g) of this section, and serve the submission in accordance with the 
requirements of Sec. 206.8(b) and paragraph (f)(1) of this section, 
with the specific information as to which exemption from disclosure 
under administrative protective order has been granted redacted from 
the copies served. If a request is denied, the copy of the information 
lodged with the Secretary shall promptly be returned to the requester.
    (3) The Secretary shall not accept for filing into the record of an 
investigation submissions filed without a proper certificate of 
service. Failure to comply with paragraph (f) of this section may 
result in denial of party status and such sanctions as the Commission 
deems appropriate. Confidential business information in submissions 
must be clearly marked as such when submitted, and must be segregated 
from other material being submitted.
    (g) Exemption from disclosure.
    (1) In general. Any person may request exemption from the 
disclosure of confidential business information under administrative 
protective order, whether the person desires to include such 
information in a petition filed under this Subpart B, or any other 
submission to the Commission during the course of an investigation. 
Such a request shall only be granted if the Secretary finds that such 
information is privileged information, classified information, or 
specific information of a type which there is a clear and compelling 
need to withhold from disclosure.
    (2) Request for exemption. A request for exemption from disclosure 
must be filed with the Secretary in writing with the reasons therefor. 
At the same time as the request is filed, one copy of the confidential 
business information in question must be lodged with the Secretary 
solely for the purpose of obtaining a determination as to the request. 
The confidential business information for which exemption from 
disclosure is sought shall remain the property of the requester, and 
shall not become or be incorporated into any agency record until such 
time as the request is granted. A request should, when possible, be 
filed two business days prior to the deadline, if any, for filing the 
document in which the information for which exemption from disclosure 
is sought is proposed to be included. The Secretary shall promptly 
notify the requester as to whether the request has been approved or 
denied.
    (3) Procedure if request is approved. If the request is approved, 
the person shall file three versions of the submission containing the 
confidential business information in question. One version shall 
contain all confidential business information, bracketed in accordance 
with Sec. 206.8(c), with the specific information as to which exemption 
from disclosure was granted enclosed in double brackets. This version 
shall have the following warning marked on every page: ``CBI exempted 
from disclosure under APO enclosed in double brackets.'' The other two 
versions shall conform to and be filed in accordance with the 
requirements of Sec. 206.8, except that the specific information as to 
which exemption from disclosure was granted shall be redacted from 
those versions of the submission.
    (4) Procedure if request is denied. If the request is denied, the 
copy of the information lodged with the Secretary [[Page 16]] shall 
promptly be returned to the requester.


Sec. 206.18  Time for determinations, reporting.

    (a) In general. The Commission will make its determination with 
respect to injury within 120 days after the date on which the petition 
is filed, the request or resolution is received, or the motion is 
adopted, as the case may be, except that--
    (1) if the Commission determines before the 100th day that the 
investigation is extraordinarily complicated, the Commission will make 
its determination within 150 days; or
    (2) if critical circumstances are alleged, the Commission will make 
its determination within 120 days after completion of its investigation 
with respect to critical circumstances.
    The Commission will make its report to the President at the 
earliest practicable time, but not later than 180 days (240 days if 
critical circumstances are alleged) after the date on which the 
petition is filed, the request or resolution is received, or the motion 
is adopted, as the case may be.
    (b) Perishable agricultural product. In the case of a request in a 
petition for provisional relief with respect to a perishable 
agricultural product that has been the subject of monitoring by the 
Commission, the Commission will report its determination and any 
finding to the President not later than 21 days after the date on which 
the request for provisional relief is received.
    (c) Critical circumstances. If petitioner alleges the existence of 
critical circumstances in the petition, the Commission will report its 
determination regarding such allegation and any finding on or before 
the 60th day after such filing date.


Sec. 206.19  Public report.

    Upon making a report to the President of the results of an 
investigation to which this Subpart B relates, the Commission will make 
such report public (with the exception of information which the 
Commission determines to be confidential) and cause a summary thereof 
to be published in the Federal Register.

Subpart D--Investigations Relating to Bilateral Safeguard Actions

    4. Section 206.34 is revised to read as follows:


Sec. 206.34  Contents of petition.

    A petition under this Subpart D shall include specific information 
in support of the claim that, as a result of the reduction or 
elimination of a duty provided for under the North American Free Trade 
Agreement, a Canadian or Mexican article, as the case may be, is being 
imported into the United States in such increased quantities (in 
absolute terms) and under such conditions so that imports of the 
article, alone, constitute a substantial cause of serious injury, or 
(except in the case of a Canadian article) a threat of serious injury, 
to the domestic industry producing an article that is like or directly 
competitive with the imported article. Such petition shall state 
whether provisional relief is sought because critical circumstances 
exist or because the imported article is a perishable agricultural 
product. In addition, such petition shall include the following 
information, to the extent that such information is publicly available 
from governmental or other sources, or best estimates and the basis 
therefor if such information is not available:
    (a) Product description. The name and description of the imported 
article concerned, specifying the United States tariff provision under 
which such article is classified and the current tariff treatment 
thereof, and the name and description of the like or directly 
competitive domestic article concerned;
    (b) Representativeness.
    (1) The names and addresses of the firms represented in the 
petition and/or the firms employing or previously employing the workers 
represented in the petition and the locations of their establishments 
in which the domestic article is produced;
    (2) The percentage of domestic production of the like or directly 
competitive domestic article that such represented firms and/or workers 
account for and the basis for claiming that such firms and/or workers 
are representative of an industry; and
    (3) The names and locations of all other producers of the domestic 
article known to the petitioner;
    (c) Import data. Import data for at least each of the most recent 5 
full years that form the basis of the claim that the Canadian or 
Mexican article concerned is being imported in increased quantities in 
absolute terms;
    (d) Domestic production data. Data on total U.S. production of the 
domestic article for each full year for which data are provided 
pursuant to paragraph (c) of this section;
    (e) Data showing injury. Quantitative data indicating the nature 
and extent of injury to the domestic industry concerned:
    (1) With respect to serious injury, data indicating:
    (i) A significant idling of production facilities in the industry, 
including data indicating plant closings or the underutilization of 
production capacity;
    (ii) The inability of a significant number of firms to carry out 
domestic production operations at a reasonable level of profit; and
    (iii) Significant unemployment or underemployment within the 
industry; and/or
    (2) With respect to the threat of serious injury, data relating to:
    (i) A decline in sales or market share, a higher and growing 
inventory (whether maintained by domestic producers, importers, 
wholesalers, or retailers), and a downward trend in production, 
profits, wages, productivity, or employment (or increasing 
underemployment);
    (ii) The extent to which firms in the industry are unable to 
generate adequate capital to finance the modernization of their 
domestic plants and equipment, or are unable to maintain existing 
levels of expenditures for research and development;
    (iii) The extent to which the U.S. market is the focal point for 
the diversion of exports of the article concerned by reason of 
restraints on exports of such article to, or on imports of such article 
into, third country markets; and
    (3) Changes in the level of prices, production, and productivity.
    (f) Cause of injury. An enumeration and description of the causes 
believed to be resulting in the injury, or threat thereof, described 
under paragraph (e) of this section, and a statement regarding the 
extent to which increased imports of the Canadian or Mexican article 
are believed to be such a cause, supported by pertinent data;
    (g) Relief sought and purpose thereof. A statement describing the 
import relief sought, including the type, amount, and duration, and the 
specific purposes therefor, which may include facilitating the orderly 
transfer of resources to more productive pursuits, enhancing 
competitiveness, or other means of adjustment to new conditions of 
competition;
    (h) Efforts to compete. A statement on the efforts being taken, or 
planned to be taken, or both, by firms and workers in the industry to 
make a positive adjustment to import competition.
    (i) Critical circumstances. If the petition alleges the existence 
of critical circumstances, a statement setting forth the basis for the 
belief that there is clear evidence that increased imports (either 
actual or relative to domestic production) of the article are a 
substantial cause of serious injury, or the threat thereof, to the 
domestic industry, and that delay in taking action [[Page 17]] would 
cause damage to that industry that would be difficult to repair, and a 
statement concerning the provisional relief requested and the basis 
therefor.
    5. Section 206.35 is revised to read as follows:


Sec. 206.35  Time for determinations, reporting.

    (a) In general. The Commission will make its determination with 
respect to injury within 120 days after the date on which the 
investigation is initiated. The Commission will make its report to the 
President no later than 30 days after the date on which its 
determination is made.
    (b) Perishable agricultural product. In the case of a request in a 
petition for provisional relief with respect to a perishable 
agricultural product that has been the subject of monitoring by the 
Commission, the Commission will report its determination and any 
finding to the President not later than 21 days after the date on which 
the request for provisional relief is received.
    (c) Critical circumstances. If petitioner alleges the existence of 
critical circumstances in the petition, the Commission will report its 
determination regarding such allegation and any finding on or before 
the 60th day after such filing date.
    6. Subpart F is revised to read as follows:
Subpart F--Monitoring; Advice as to Effect of Extension, Reduction, 
Modification, or Termination of Relief Action
206.51  Applicability of Subpart.
206.52  Monitoring.
206.53  Investigations to advise the President as to the probable 
economic effect of reduction, modification, or termination of 
action.
206.54  Investigations with respect to extension of action.
206.55  Investigations to evaluate the effectiveness of relief.

Subpart F--Monitoring; Advice As to Effect of Extension, Reduction, 
Modification, or Termination of Relief Action


Sec. 206.51  Applicability of subpart

    This subpart F applies specifically to investigations under section 
204 of the Trade Act. For other applicable rules, see subpart A of this 
part and part 201 of this chapter.


Sec. 206.52  Monitoring.

    (a) In general. As long as any import relief imposed by the 
President pursuant to section 203 of the Trade Act remains in effect, 
the Commission will monitor developments with respect to the domestic 
industry, including the progress and specific efforts made by workers 
and firms in the industry to make a positive adjustment to import 
competition.
    (b) Reports. Whenever the initial period of import relief, or any 
extension thereof, exceeds three (3) years, the Commission will submit 
a report on the results of such monitoring to the President and the 
Congress. Such report will be submitted not later than the date which 
is the mid-point of the initial period of import relief, or any 
extension thereof. In the course of preparing each such report, the 
Commission will hold a hearing at which interested persons will be 
given a reasonable opportunity to be present, to produce evidence, and 
to be heard.


Sec. 206.53  Investigations to advise the President as to the probable 
economic effect of reduction, modification, or termination of action.

    Upon the request of the President, the Commission will conduct an 
investigation for the purpose of gathering information in order that it 
might advise the President of its judgment as to the probable economic 
effect on the industry concerned of any reduction, modification, or 
termination of the action taken under section 203 of the Trade Act 
which is under consideration.


Sec. 206.54  Investigations with respect to extension of action.

    (a) Institution of investigations. Upon the request of the 
President, or upon petition on behalf of the industry concerned, the 
Commission will investigate to determine whether an action taken under 
section 203 of the Trade Act continues to be necessary to prevent or 
remedy serious injury and whether there is evidence that the industry 
is making a positive adjustment to import competition.
    (b) Who may file a petition. A petition under this Sec. 206.54 may 
be filed by an entity, including a trade association, firm, certified 
or recognized union, or group of workers, which is representative of 
the industry producing the domestic article concerned in the 
investigation of the Commission which resulted in the imposition by the 
President of the import relief action.
    (c) Time for filing. Any petition filed on behalf of an industry 
for a determination under this Sec. 206.54 must be filed with the 
Commission not earlier than the date which is 9 months, and not later 
than the date which is 6 months, before the date any action taken under 
section 203 of the Trade Act is to terminate.
    (d) Contents of petition. A petition under this Sec. 206.54 shall 
include the following information, to the extent that such information 
is publicly available from governmental or other sources, or best 
estimates and the basis therefor if such information is not available:
    (1) Identification of relief action. An identification of the 
action under section 203, or portion of such action, for which a 
determination under this Sec. 206.54 is sought;
    (2) Representativeness. (i) The names and addresses of the firms 
represented in the petition and/or the firms employing or previously 
employing the workers represented in the petition and the locations of 
their establishments in which the domestic article is produced;
    (ii) The percentage of domestic production of the like or directly 
competitive domestic article that such represented firms and/or workers 
account for and the basis for claiming that such firms and/or workers 
are representative of an industry; and
    (iii) The names and locations of all other producers of the 
domestic article known to the petitioner;
    (3) Import data. Import data on the foreign article concerned for 
each full year since action was taken under section 203 of the Trade 
Act, starting with the year in which action was taken;
    (4) Domestic production data. Data on total U.S. production of the 
domestic article concerned for each year for which data are provided 
pursuant to paragraph (d)(3) of this section;
    (5) Efforts to adjust. Specific information in support of the claim 
that action under section 203 of the Trade Act continues to be 
necessary to prevent or remedy serious injury and that there is 
evidence that the industry is making a positive adjustment to import 
competition.
    (e) Limited disclosure of certain confidential business information 
under administrative protective order. Upon receipt of a timely 
application filed by an authorized applicant, the Secretary shall make 
available to an authorized applicant under administrative protective 
order all confidential business information contained in Commission 
memoranda and reports and in written submissions filed with the 
Commission at any time during an investigation under this section with 
respect to an article that was the subject of an affirmative Commission 
determination under section 202 of the Trade Act (except privileged 
information, classified information, and specific information of a type 
which there is a clear and compelling need to withhold from 
disclosure). Such disclosure shall be made in the manner provided for 
and in accordance with the procedures set forth in Sec. 206.17. The 
[[Page 18]] provisions in paragraphs (d) and (e) of Sec. 206.17 
relating to Commission responses to a breach of an administrative 
protective order and breach procedure shall apply with respect to 
orders issued under this paragraph.
    (f) Time for reporting. The Commission will make its report to the 
President at the earliest practical time, but not later than 60 days 
before the action under section 203 of the Trade Act is to terminate, 
unless the President specifies a different date.
    (g) Public report. Upon making a report to the President of the 
results of an investigation to which this Sec. 206.54 relates, the 
Commission will make such report public (with the exception of 
information which the Commission determines to be confidential) and 
cause a summary thereof to be published in the Federal Register.


Sec. 206.55  Investigations to evaluate the effectiveness of relief.

    (a) Investigation. After any action taken under section 203 has 
terminated, the Commission will conduct an investigation for the 
purpose of evaluating the effectiveness of the relief action in 
facilitating positive adjustment by the domestic industry to import 
competition, consistent with the reasons set out by the President in 
the report submitted to the Congress under section 203(b) of the Trade 
Act.
    (b) Hearing. In the course of such investigation, the Commission 
will hold a hearing at which interested persons will be given an 
opportunity to be present, to produce evidence, and to be heard.
    (c) Time for reporting. The Commission will submit its report to 
the President and to the Congress by no later than the 180th day after 
the day on which the action terminated.

    By order of the Commission.

    Issued: December 23, 1994.
Donna R. Koehnke,
Secretary.
[FR Doc. 94-32126 Filed 12-30-94; 8:45 am]
BILLING CODE 7020-02-P