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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4206 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4206

 To provide for the implementation of the Uruguay Round of the General 
 Agreement on Tariffs and Trade concerning specific code section, and 
                          for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 13, 1994

Mr. Regula (for himself and Mr. Mineta) introduced the following bill; 
which was referred jointly to the Committees on Ways and Means, Rules, 
                   the Judiciary, and Foreign Affairs

_______________________________________________________________________

                                 A BILL

 
 To provide for the implementation of the Uruguay Round of the General 
 Agreement on Tariffs and Trade concerning specific code section, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``GATT Fair Trade 
Enforcement Act of 1994.''.
    (b) Table of Contents.--

Sec. 1. Short Title; Table of contents.
        TITLE I--COUNTERVAILING AND ANTIDUMPING DUTY AMENDMENTS

Sec. 101. Sales in home market for export to the United States.
Sec. 102. Calculation of exporter's sales price when value added after 
                            importation.
Sec. 103. Compensation awards.
Sec. 104. Diversionary input dumping.
Sec. 105. Upstream subsidies.
Sec. 106. Sales at less than cost of production.
Sec. 107. Prevention of circumvention.
Sec. 108. Standing.
Sec. 109. Selling, general and administrative expenses, and profit.
Sec. 110. Reviews upon information or request or passage of time.
Sec. 111. Currency conversion.
Sec. 112. Sampling and averaging.
Sec. 113. Market viability.
Sec. 114. Negligible imports.
Sec. 115. Captive production.
Sec. 116. Duty as a coast.
               TITLE II--INTELLECTUAL PROPERTY AMENDMENTS

Sec. 201. International intellectual property protection objectives.
Sec. 202. Fast track authority for New Free Trade Agreements.
Sec. 203. Special 301.
Sec. 204. Amendment of section 337 of the Traffic Act of 1930.
Sec. 205. Generalized system of preferences.
Sec. 206. Model Intellectual Property Agreement.
Sec. 207. Efforts by United States Diplomats.
Sec. 208. Private sector involvement in international dispute 
                            settlement.
Sec. 209. Incentives to improve foreign intellectual property 
                            protection.
Sec. 210. Intellectual property rights border enforcement maintenance.
                   TITLE III--MARKET OPENING MEASURES

Sec. 301. Action by the President to open Foreign Markets.
Sec. 302. Amendments to section 301.
Sec. 303. Specialty steel product tariffs.

TITLE I--COUNTERVAILING AND ANTIDUMPING DUTY AMENDMENTS

5SEC. 101. SALES IN HOME MARKET FOR EXPORT TO THE UNITED STATES.

    Section 485 of the Tariff Act of 1930, as amended (19 U.S.C. 1485), 
is amended--
            (1) by adding to the end of section (a) the following new 
        paragraph:
            ``(5) Whether the merchandise is subject to any outstanding 
        antidumping or countervailing duty order, and whether the 
        importer disclosed to the manufacturer or producer of the 
        merchandise in the country of exportation that the destination 
        of the merchandise was the United States.''; and
            (2) by adding at the end of the section the following new 
        paragraph:
    ``(h) Disclosure in Antidumping Cases.--Every importer of record 
making entry under the provisions of section 1484 of this title with 
respect to merchandise that is subject to an antidumping duty order 
under the provisions of section 1673 of this title, its agents or 
principals, or any party related thereto within the meaning of section 
1677(13) of this title, shall disclose to the manufacturer or producer 
of such merchandise that the merchandise has been purchased for 
exportation to the United States, unless, at the time of purchase, the 
importer of record, its agents or principals, or any party related 
thereto within the meaning of section 1677(13) of this title, did not 
intend to export the merchandise to the United States, did not import 
the merchandise for a period of at least six months from the date of 
purchase, and does not regularly or customarily engage in a pattern of 
importation of such merchandise. Failure by an importer to disclose the 
fact that merchandise subject to an antidumping duty order was 
purchased for exportation to the United States or to provide the 
certification required under paragraph (a)(5) of this section, shall be 
subject to prosecution under section 592 of this title.''.

SEC. 102. CALCULATION OF EXPORTER'S SALES PRICE WHEN VALUE ADDED AFTER 
              IMPORTATION.

    Section 772 of the Tariff Act of 1930, as amended (19 U.S.C. 
1677a(c)), is amended by--
            (1) by striking the period at the end of paragraph (e)(3) 
        and inserting in lieu thereof the following: ``, unless the 
        administering authority determines it is appropriate to use an 
        alternate form of exporter's sales price pursuant to paragraph 
        (f).''; and
            (2) by inserting at the end of paragraph (e), as amended by 
        this Act, the following:
    ``(f) Alternate Bases for Exporter's Sales Price.--Whenever there 
is any increase in the value of imported merchandise, resulting from a 
process of manufacture or assembly, after importation and before its 
sale to a person who is not the exporter of the merchandise, to the 
extent that the increase in value substantially exceeds the value of 
the imported merchandise when resold without any additional manufacture 
or assembly, the `exporter's sales price' shall be--
            ``(1) the price at which such or similar merchandise is 
        sold or agreed to be sold in the United States, before or after 
        the time of importation, to a person who is not the exporter of 
        the merchandise, with due allowance if merchandise described in 
        paragraph (B) or (C) of section 1677(16) of this title is used 
        in determining exporter's sales price, and adjusted under 
        paragraphs (d) and (e) of this subsection, or
            ``(2) the transaction value of the merchandise, as 
        determined under section 1401a(b) and adjusted under paragraph 
        (d) of this section, where the administering authority is 
        satisfied that such transaction value is less than or equal to 
        the arm's length price to a person who is not the exporter of 
        the merchandise.''.

SEC. 103. COMPENSATION AWARDS.

    Section 736 of the Tariff Act of 1930 (19 U.S.C. 1673e) is amended 
by adding at the end thereof the following new section:

``SEC. 736A. COMPENSATION AWARDS.

    ``(a) Definitions.--For the purposes of this section--
            ``(1) the term `affected domestic producer' means any 
        manufacturer, producer, or worker representative that was a 
        petitioner or interested party in support of the petition with 
        respect to which an affirmative injury determination was made 
        in connection with an antidumping duty finding or order or 
        countervailing duty order;
            ``(2) the term `antidumping order' means an antidumping 
        duty order published under section 736 of the Tariff Act of 
        1930 or an antidumping finding published under the Antidumping 
        Act, 1921;
            ``(3) the term `countervailing duty order' means a 
        countervailing duty order published under sections 303 or 706 
        of the Tariff Act of 1930;
            ``(4) the term `Commission' means the United States 
        International Trade Commission;
            ``(5) the term `Commissioner' means the Commissioner of the 
        United States Customs Service;
            ``(6) the term `dumped merchandise' means merchandise with 
        respect to which an antidumping duty is imposed under an 
        antidumping order or finding; and
            ``(7) the term `subsidized merchandise' means merchandise 
        with respect to which a countervailing duty is imposed under a 
        countervailing duty order.
    ``(b) Application Process.--The Commissioner of the Customs Service 
shall prescribe procedures governing when and the form and manner in 
which compensation awards shall be made annually, at the latest within 
thirty days of the release of the Annual Report on the Status of the 
Antidumping/ Countervailing Duty Program.
    ``(c) Determination of Compensation.--
            ``(1) The Commission shall forward to the Commissioner 
        within sixty days of the effective date of this section or 
        within sixty days of the issuance of an antidumping or 
        countervailing duty order after the effective date of this 
        section a list of petitioners and those companies that 
        indicated support of the petition by letter or through 
        questionnaire response as well as a confidential tabulation of 
        the dollar value of shipments for each petitioner or company in 
        support of the petition during the last year covered by the 
        original Commission investigation. The confidentiality of the 
        data submitted by the Commission to the Commissioner shall be 
        maintained. Where no injury test was required, the Commissioner 
        shall within one hundred and eighty days of the publication of 
        a countervailing duty order after the effective date of this 
        section obtain information from the named petitioners for the 
        most recent calendar year shipment values.
            ``(2) The Commissioner shall publish in the Federal 
        Register at least thirty days prior to the issuance of payments 
        a notice of intention to distribute compensation and the list 
        of companies eligible based on the list obtained from the 
        Commission.
            ``(3) The Commissioner shall distribute all funds 
        (including all interest earned) from assessments received in 
        the completed fiscal year, from the appropriate special 
        compensation account established under subsection (d), to 
        petitioners and those in support according to the relative 
        shipment values supplied by the Commission pursuant to 
        subparagraph (1).
        Upon the date an antidumping duty order takes effect the 
        Commissioner.
            ``(4) Compensation awards payable under this section shall 
        be provided to the affected domestic producers to be used 
        solely for the purpose of funding a pension plan, fund, or 
        program maintained or established for the purpose of 
        providing--
                    ``(A) medical, surgical, or hospital care benefits;
                    ``(B) benefits in the event of sickness, accident, 
                disability, or death;
                    ``(C) benefits in the event of plant closure or 
                layoff; or
                    ``(D) benefits from a nonqualified pension plan 
                that provides benefits in the event of a termination of 
                a qualified pension plan;
        up to an amount equal to the amount needed to maintain 
        sufficient cash and marketable securities in the plan to pay 
        projected benefits and reasonable plan administration costs for 
        twenty-four months commencing from the date of receipt of the 
        compensation award. If sufficient cash and marketable 
        securities exist to fund the plan, fund, or program as required 
        under this section then the compensation award may be used as 
        deemed appropriate by the individual domestic producer.
            ``(5) If a compensation award payable under paragraph (3) 
        cannot be received by an eligible domestic producer due to such 
        pension plan, fund, or program being already fully funded then 
        such monies may be used by the domestic producer for research 
        and development expenses, as approved by the Secretary.
    ``(d) Special Compensation Accounts.--
            ``(1) Within fourteen days of the effective date of this 
        provision for outstanding antidumping duty orders and findings, 
        or for outstanding countervailing duty orders, or within 
        fourteen days of the date an antidumping or countervailing duty 
        order takes effect, the Secretary of the Treasury (hereafter 
        referred to as the Secretary in this section) shall establish 
        in the Treasury of the United States a special compensation 
        account with respect to the order.
            ``(2) The Secretary shall deposit into a special 
        compensation account all antidumping or countervailing duties, 
        including interest on such duties, that are collected under the 
        antidumping order or finding or countervailing duty order with 
        respect to which the account was established.
            ``(3) The monies in a special compensation account shall be 
        available for payment of compensation awards issued under 
        section (c) to the extent of actual assessments, including 
        interest.
            ``(4) The Commissioner shall by regulation prescribe the 
        time and manner in which payment of compensation awards from 
        special compensation accounts will be made.
            ``(5) The compensation awards and special compensation 
        accounts will remain in existence until all duties relating to 
        an order which has been terminated are liquidated and all funds 
        distributed to the domestic parties entitled to receipts of 
        same under this section. Any amounts unable to be distributed 
        within ninety days of the time of the final distribution of all 
        duties of a terminated or shall be turned over to the general 
        Treasury.''.

SEC. 104. DIVERSIONARY INPUT DUMPING.

    (a) In General.--Subtitle D of title VII of the Tariff Act of 1930 
(19 U.S.C. 1677 et seq.) is amended by inserting after section 771B the 
following new section:

``SEC. 771C. DIVERSIONARY INPUT DUMPING.

    ``For purposes of this title, diversionary input dumping occurs 
when--
            ``(1) a producer or manufacturer incorporates into 
        merchandise under investigation a component or a material which 
        is the subject of--
                    ``(A) an antidumping duty order issued under 
                section 736,
                    ``(B) a finding issued under the Antidumping Act, 
                1921, or
                    ``(C) an international arrangement or agreement 
                described in section 734, if such arrangement or 
                agreement was entered into after an affirmative 
                preliminary determination was made under section 
                733(b), and
            ``(2) the producer or manufacturer under investigation 
        purchased the material or component at a price which is less 
        than the foreign market value (determined under section 
        773(e)).''.
    (b) Foreign Value.--
            (1) In general.--Paragraph (2) of section 773(a) of such 
        Act (19 U.S.C. 1677b(A)(2)) is amended by inserting ``(or, if 
        the administering authority finds there is a reasonable basis 
        to believe that diversionary input dumping is occurring which 
        has a significant effect on the cost of producing the 
        merchandise under investigation)'' after paragraph (1)(A).
            (2) Special rule for diversionary input dumping.--Section 
        773(e) of such Act (19 U.S.C. 1677b(e)) is amended by adding at 
        the end thereof the following new paragraph:
            ``(5) Diversionary input dumping.--If the administering 
        authority determines that diversionary input dumping is 
        occurring and has a significant effect on the cost of producing 
        the merchandise under investigation, the administering 
        authority shall, in calculating the cost of the material or 
        component under paragraph (1)(A), include the amount of the 
        diversionary input dumping determined to exist with respect to 
        such material or component. For purposes of the preceding 
        sentence, the amount of the diversionary input dumping is the 
        difference, if any, by which--
                    ``(A) the foreign market value of the input 
                material or component involved, as calculated under 
                this title, exceeds
                    ``(B) the purchase price of the input material or 
                component paid by the producer or manufacturer of the 
                merchandise under investigation.''.
    (c) Procedures for Initiating an Antidumping Investigation.--
Section 732(a) of such Act (19 U.S.C. 1673a(A)) is amended by adding at 
the end thereof the following new paragraph:
            ``(3) Cases involving diversionary input dumping.--The 
        administering authority shall commence an antidumping 
        investigation whenever it has reasonable grounds to believe or 
        suspect that--
                    ``(A) diversionary input dumping (as defined in 
                section 771(c)) is occurring,
                    ``(B) such diversionary input dumping has a 
                significant effect on the cost of producing the 
                merchandise under investigation, and
                    ``(C) subsequent to the imposition of an 
                antidumping duty order or entry into force of an 
                international agreement relating to imports into the 
                United States of the material or component in question, 
                shipments to the United States of the merchandise under 
                investigation have increased (either in quantity or 
                market share).''.
    (d) Timetable for Preliminary Determination by Administering 
Authority.--Section 733(b)(1) of such Act (19 U.S.C. 1673b(b)(1)) is 
amended by adding at the end thereof the following new subparagraph:
                    ``(D) If diversionary input dumping involved.--If, 
                as part of a petition filed under section 732(b), or an 
                investigation commenced under section 732(a), the 
                administering authority has reasonable grounds to 
                believe or suspect that diversionary input dumping is 
                occurring, the administering authority may treat the 
                investigation as an extraordinarily complicated case 
                under subsection (c) and may extend the period of time 
                for making a preliminary determination accordingly.''.
    (e) Clerical Amendment.--The table of contents for subtitle VII of 
the Tariff Act of 1930 is amended by inserting after the item relating 
to section 771B the following new item:

``Sec. 771C. Diversionary input dumping.''.

SEC. 105. UPSTREAM SUBSIDIES.

    (a) Definition.--Section 771A(a) of the Tariff Act of 1930 (19 
U.S.C. 1677-1(a)) is amended in its last sentence by inserting after 
``subsidy is provided'' the words ``or authorized''.
    (b) Determination of Competitive Benefit in Upstream Subsidies.--
Section 771A(b)(1) of the Tariff Act of 1930 (19 U.S.C. 1677-1(b)(1)) 
is amended--
            (1) by striking ``Except'' and inserting ``(A) Except,''
            (2) by striking ``another seller'' and inserting ``an 
        unsubsidized seller in subparagraph (A), as redesignated by 
        paragraph (1), and
            (3) by adding at the end thereof the following new 
        paragraph--
                    ``(B) For purposes of subparagraph (A), the 
                administering authority shall determine the price that 
                the manufacturer or producer would otherwise pay for 
                the input product in obtaining it from an unsubsidized 
                seller by applying the first of the following factors 
                that may apply--
                            ``(i) the price paid (including any 
                        delivery fees) by the manufacturer or producer 
                        to an unsubsidized seller located in the same 
                        country as the seller of the input product,
                            ``(ii) the price paid (including any 
                        delivery fees) by the manufacturer or producer 
                        to an unsubsidized seller located in a country 
                        other than the country of the seller of the 
                        input product,
                            ``(iii) information on prices (including 
                        all delivery fees) from an unsubsidized seller 
                        of the input product located in the same 
                        country as the subsidized seller of the input 
                        product, or
                            ``(iv) information on prices (including all 
                        delivery fees) from an unsubsidized seller of 
                        the input product located in a country other 
                        than the country of the subsidized seller of 
                        the input product.''.

SEC. 106. SALES AT LESS THAN COST OF PRODUCTION.

    Section 773(b) of the Tariff Act of 1930 (19 U.S.C. 1677b(b)) is 
amended by striking all that follows ``made at less than the cost of 
producing the merchandise.'' and inserting in lieu thereof the 
following: ``In the determination of foreign market value, the 
administering authority shall disregard sales made at less than cost of 
production if such sales have been made in substantial quantities over 
the period of investigation or review and at prices which do not permit 
the recovery of all costs within a reasonable period of time in the 
ordinary course of trade. Whenever sales are disregarded by virtue of 
being made at less than the cost of production and the remaining sales, 
made at not less than the cost of productions, constitute less than 30 
percent of the volume of sales of the merchandise under consideration 
the administering authority shall employ the constructed value of the 
merchandise to determine its foreign market value. For purposes of this 
subsection the following provisions shall apply:
            ``(1) Sales below cost shall be deemed by the administering 
        authority to have been made in substantial quantities if--
                    ``(A) the weighted average selling price for the 
                period of investigation is less than the weighted 
                average cost of production for the merchandise in 
                question for the period, or
                    ``(B) the volume of sales found to be below cost 
                represents not less than 20 percent of the volume of 
                such merchandise sold.
            ``(2) In investigations under section 1673, the 
        administering authority shall calculate the cost of producing 
        the merchandise for the period of investigation.
            ``(3) In administrative reviews under section 1675, the 
        administering authority shall calculate the cost of producing 
        the merchandise based on the weighted average cost for the 
        period or periods during the review that the administering 
        authority determines to be reasonable for comparison to prices.
            ``(4) Prices determined to be below cost at the time of 
        sale shall not be considered to provide for the recovery of 
        costs within the reasonable period of time (not to exceed the 
        period of investigation or review), unless the administering 
        authority determines that such prices are above cost for the 
        period for which costs were calculated for purposes of 
        subparagraphs (2) and (3) of this section.
            ``(5) For the purposes of determining cost of productions 
        and constructed value, the administering authority shall 
        examine the allocation of non-recurring costs to current and 
        future production. As long as the allocations are reasonably 
        reflective of the costs associated with the production and sale 
        of the product under consideration, any allocations consistent 
        with the generally accepted accounting principles of the 
        exporting country will normally be accepted. The administering 
        authority shall confirm that all non-recurring costs from the 
        period prior to the period of investigation that benefit 
        current production have been appropriately allocated to current 
        and future production.
            ``(6) For the purposes of determining cost of production 
        and constructed value, unless already reflected in the cost 
        allocations, appropriate adjustments shall be made for 
        circumstances in which certain non-recurring costs during the 
        period of investigation are affected by start-up operations. 
        The adjustment made for start-up operations shall reflect the 
        per unit costs of labor and overhead. For purposes of this 
        paragraph the term `start-up period' shall mean the period 
        prior to the commencement of commercial production (as defined 
        in the normal course of business by the industry in question in 
        the exporting country) of a new general category of 
        merchandise.''

SEC. 107. PREVENTION OF EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY 
              ORDERS.

    (a) Merchandise Completed or Assembled in the United States.--
Section 781(a) of the Tariff Act of 1930 (19 U.S.C. 1677j(a)) is 
amended to read as follows:
    ``(a) Merchandise Completed or Assembled in the United States.--
            ``(1) In general.--In determining whether imported 
        materials or components are circumventing an antidumping or 
        countervailing duty order or finding and whether to include 
        such materials or components in that order or finding, the 
        administering authority shall consider--
                    ``(A) the pattern of trade,
                    ``(B) the value and sources of supply of materials 
                or components historically used in completion or 
                assembly of the merchandise subject to an antidumping 
                or countervailing duty order,
                    ``(C) whether the manufacturer or exporter of the 
                materials or components is related to the person who 
                assembles or completes the merchandise sold in the 
                United States from the materials or components produced 
                in the foreign country with respect to which the order 
                or finding described in paragraph (2) applies, and
                    ``(D) whether imports into the United States of the 
                materials or components produced in such foreign 
                country have increased after the issuance of such order 
                or finding.
            ``(2) Merchandise that may be included in order or 
        finding.--If--
                    ``(A) merchandise sold in the United States is of 
                the same class or kind as any other merchandise that is 
                the subject of--
                            ``(i) an antidumping duty order issued 
                        under section 736,
                            ``(ii) a finding issued under the 
                        Antidumping Act of 1921, or
                            ``(iii) a countervailing duty order issued 
                        under section 706 or 303;
                    ``(B) such merchandise sold in the United States is 
                completed or assembled in the United States from 
                materials or components supplied by the exporter or 
                producer with respect to which such order of finding 
                applies, from suppliers that have historically supplied 
                the materials or components to that exporter or 
                producer, or from any party supplying materials or 
                components on behalf of such an exporter or producer;
                    ``(C) the value of the imported materials and 
                components referred to in subparagraph (B), whether 
                considered individually or collectively, is significant 
                in relation to the total value of all materials and 
                components used in the assembly or completion 
                operation, excluding packaging, of the imported 
                merchandise covered by the order or finding; and
                    ``(D) consideration of the factors set forth in 
                paragraph (1) otherwise establishes a pattern of 
                circumvention with the effect of evading an antidumping 
                or countervailing duty order or finding;
        the administering authority, after taking into account any 
        advice provided by the Commission under subsection (e), may 
        include within the scope of such order or finding the imported 
        materials or components referred to in subparagraphs (B) and 
        (C) that are used in the completion or assembly of the 
        merchandise in the United States at any time such order or 
        finding is in effect.''.
    (b) Merchandise Completed or Assembled in Other Foreign 
Countries.--Section 781(b) of the Tariff Act of 1930 (19 U.S.C. 
1677j(b)) is amended to read as follows:
    ``(b) Merchandise Completed or Assembled in Other Foreign 
Countries.--
            ``(1) In general.--In determining whether merchandise 
        complete or assembled in a foreign country is circumventing an 
        antidumping or countervailing duty order or finding and whether 
        to include such merchandise in that order or finding, the 
        administering authority shall consider--
                    ``(A) the pattern of trade,
                    ``(B) the value and sources of supply of materials 
                or components historically used in completion or 
                assembly of the merchandise subject to an antidumping 
                or countervailing duty order,
                    ``(C) whether the manufacturer or exporter of the 
                merchandise described in paragraph (2)(B) is related to 
                the person who used the merchandise described in 
                subparagraph (2)(B) to assemble or complete in the 
                foreign country the merchandise that is subsequently 
                imported into the United States, and
                    ``(D) whether imports into the foreign country of 
                the merchandise described in subparagraph (2)(B) have 
                increased after the issuance of such order or findings.
            ``(2) Merchandise that may be included in order or 
        finding.--If--
                    ``(A) merchandise imported into the United States 
                is either of the same class or kind or incorporates an 
                essential component that is of the same class or kind 
                as merchandise produced in a foreign country that is 
                the subject of--
                            ``(i) an antidumping duty order issued 
                        under section 736,
                            ``(ii) a finding issued under the 
                        Antidumping Act, 1921, or
                            ``(iii) a countervailing duty order issued 
                        under section 706 or section 303; and
                    ``(B)(i) before importation into the United States, 
                such imported merchandise is completed or assembled in 
                another foreign country from merchandise which is 
                subject to such order or finding, is produced in the 
                foreign country with respect to which such order of 
                finding applies, or is supplied by the exporter or 
                producer with respect to which such order of finding 
                applies or by suppliers that have historically supplied 
                the materials or components to that exporter or 
                producer, and such merchandise which is used in the 
                assembly or completion or the imported merchandise has 
                a value that is significant in relation to the total 
                value of all materials or components used in the 
                assembly or completion operation, excluding packaging; 
                or
                    ``(ii) consideration of the factors set forth in 
                paragraph (1) otherwise establishes a pattern of 
                circumvention with the effect of evading a 
                countervailing or antidumping duty order or findings; 
                and
                    ``(C) the administering authority determines that 
                action is appropriate under this paragraph to prevent 
                evasion of such order of findings,
        the administering authority, after taking into account any 
        advice provide by the Commission under subjection (e), may 
        include such imported merchandise within the scope of such 
        order or finding at any time such order of finding is in 
        effect.''.
    (c) Construction Provision.--Section 781 of the Tariff Act of 1930 
(19 U.S.C. 1677j) is amended by adding at the end thereof the following 
new subsection:
    ``(f) Construction Provision.--Nothing in this title shall be 
deemed to limit the authority of the administering authority to include 
provisions in any final order issued pursuant to--
            ``(1) an antidumping order issued under section 736,
            ``(2) a finding issued under the Antidumping Act of 1921, 
        or
            ``(3) a countervailing duty order issued under section 706 
        or section 303,
the purpose of which is to prevent the evasion of any remedy provided 
for in such finding or order or to otherwise safeguard the integrity of 
such finding or order.''.
    (d) Circumvention Timelines and Procedural Requirements.--Section 
781(a) of the Tariff Act of 1930 (19 U.S.C. 1677j(a)), as amended by 
this Act, is amended by adding at the end thereof the following:
            ``(3) Circumvention timelines and procedural 
        requirements.--
                    ``(A) Upon the filing of a petition containing 
                allegations of circumvention of antidumping and 
                countervailing duty orders, the administering authority 
                will determine within twenty days whether to initiate 
                an investigation.
                    ``(B) Within one hundred-eighty days of the 
                initiation of an investigation, the administering 
                authorities will make a preliminary affirmative or 
                negative determination.
                    ``(C) The administering authority will give the 
                parties the opportunity to file briefs and participate 
                in a hearing after the preliminary determination.
                    ``(D) The administering authority will issue a 
                final determination within seventy-five days after the 
                preliminary determination.
                    ``(E) The administering authority will give 
                interested parties the opportunity to obtain 
                confidential information under the administering 
                authority's administrative protective order 
                procedures.''.

SEC. 108. STANDING.

    Section 732(b) of the Tariff Act of 1930 (19 U.S.C. 1673a(b), as 
amended by this Act, is amended by adding the following at the end 
thereof:
            ``(4) Standing.--
                    ``(A) Upon examination of a petition that is filed, 
                accompanied by supporting evidence, alleging that the 
                petitioning members of the domestic industry account 
                for 25 percent or more of the total production of the 
                like product produced by the domestic industry, the 
                administering authority shall not be required to 
                further investigate the standing of petitioners unless 
                a written objection to initiation is filed by a member 
                of the domestic industry.
                    ``(B) Where a petition is filed without alleging 
                the support of at least 25 percent of the total 
                domestic production of the like product, the 
                administering authority shall--
                            ``(i) request an expression of support or 
                        opposition from members of the domestic 
                        industry within five days after the date of 
                        filing; and
                            ``(ii) initiate the investigation if other 
                        requirements are met, and the petition is 
                        supported by members of the domestic industry 
                        whose collective output constitutes 25 percent 
                        or more of production of the like product or 
                        supported by members of the domestic industry 
                        whose collective output constitutes more than 
                        50 percent of the total production of the like 
                        product produced by that portion of the 
                        domestic industry expressing an opinion or, in 
                        cases of fragmented industries involving a 
                        large number of producers, where sampling of 
                        opinion determines that the petition is 
                        supported by a proportion of members of the 
                        domestic industry whose collective output, as 
                        applied to the industry as a whole, would 
                        constitute more than 50 percent of the total 
                        production of the like product.
                    ``(C) If there is a written objection by a member 
                of the domestic industry within five days after 
                publication of the notice of initiation, the 
                administering authority shall poll members of the 
                domestic industry and an affirmative final 
                determination under 1673d(a) of this title shall not be 
                issued unless the petition is supported by members of 
                the domestic industry whose collective output 
                constitutes more than 50 percent of the total 
                production of the like product produced by that portion 
                of the domestic industry expressing support or 
                opposition to the petition or, in cases of fragmented 
                industries involving a large number of producers, where 
                sampling of opinion determines that the petition is 
                supported by a proportion of members of the domestic 
                industry whose collective output, as applied to the 
                industry as a whole, constitutes more than 50 percent 
                of the total production of the like product. At least 
                25 percent of the domestic industry must support the 
                petition.
                    ``(D) Expressions of opposition to initiation or 
                continuation of an investigation under this title shall 
                be disregarded if such opposition is made by a producer 
                that is related to the exporters or importers, or that 
                is itself an importer of the allegedly dumped 
                merchandise.
                    ``(E) An affirmative statement of support by a 
                union or other worker group in any company shall 
                constitute support for the petition from that company.
                    ``(F) Nothing in this section shall preclude self-
                initiation of an investigation, and the provisions of 
                this section shall not apply in the case of self-
                initiation.
                    ``(G) These provisions shall not apply to reviews 
                of orders conducted pursuant to section 1675 of title 
                19, United States Code.
                    ``(H) In investigations of regional industries, 
                pursuant to section 1677(4)(C) of title 19, United 
                States Code, the domestic industry's production shall 
                be limited, for purposes of this section, to domestic 
                production in the region or regions as defined in the 
                petition.''.

SEC. 109. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES, AND PROFIT.

    (a) Section 771 of the Tariff Act of 1930, as amended (19 U.S.C. 
1677), is amended by adding the following new paragraph:
            ``(21) Same general category of merchandise.--The term 
        `same general category of merchandise' means the most discrete 
        general grouping of products in terms of physical 
        characteristics and uses which contains the class or kind of 
        merchandise subject to investigation.''.
    (b) Section 773(e)(1) of the Tariff Act of 1930, as amended (19 
U.S.C. 1677b(e)(1)), is amended by striking paragraph (B) and inserting 
in lieu thereof the following:
                    ``(B) an amount for selling, general and 
                administrative expenses equal to that incurred on sales 
                of merchandise of the same class or kind as the 
                merchandise under consideration which are made by the 
                exporter or producer under investigation, in the usual 
                commercial quantities and in the ordinary course of 
                trade, expressed as a percentage of cost as defined in 
                subparagraph (A), except that when such amounts cannot 
                be determined on this basis, they shall be based on any 
                other evidence that the administering authority 
                determines to be reasonably representative of such 
                selling, general and administrative expenses for the 
                same class or kind of merchandise or the same general 
                category of merchandise, which shall be based on the 
                greatest of--
                            ``(i) the actual expenses incurred by the 
                        exporter or producer in question on production 
                        and sales in the domestic market of the country 
                        of origin of the same general category of 
                        merchandise;
                            ``(ii) the weighted average of the actual 
                        expenses incurred or realized by other 
                        exporters or producers subject to investigation 
                        on production and sales of the same class or 
                        kind of merchandise in the domestic market of 
                        the country or origin;
                            ``(iii) the weighted average of the actual 
                        expenses incurred by other exporters or 
                        producers subject to investigation on 
                        production and sales of the same general 
                        category of merchandise in the domestic market 
                        of the country of origin; and
                            ``(iv) evidence of selling, general and 
                        administrative expenses of producers in the 
                        United States of the same like product or same 
                        general category of merchandise, where the 
                        administering authority determines that 
                        information on such expense for the same class 
                        of kind or same general category of merchandise 
                        in the domestic market of the country of origin 
                        is not available or is not representative.''.
    (c) Section 773(e)(1) of the Tariff Act of 1930, as amended (19 
U.S.C. 1677b(e)(1)), is amended by striking paragraph (C) as (E) and 
inserting the following new subparagraphs:
                    ``(C) an amount for profit equal to that actually 
                earned by the exporter or producer on sales in the 
                country of exportation of such or similar merchandise, 
                in the usual commercial quantities and in the ordinary 
                course of trade, subject to the requirements of 
                subsections 1677b(b) of this section and excluding any 
                sales between related parties that are not at arm's 
                length prices, except that when such amounts are not 
                sufficient to recover a reasonable cost of capital in 
                the country of exportation or otherwise cannot be 
                determined on this basis, they shall be based on the 
                greatest of--
                            ``(i) the actual profits realized by the 
                        exporter or producer in question on sales in 
                        the country of exportation of the same general 
                        category of merchandise, excluding sales of the 
                        class or kind of merchandise in that market;
                            ``(ii) the weighted average of the actual 
                        profits earned by other exporters or producers 
                        subject to investigation on sales of the same 
                        class or kind of merchandise in the country of 
                        exportation;
                            ``(iii) the weighted average of the actual 
                        profits earned by other exporters or producers 
                        subject to investigation on sales in the 
                        country of exportation of the same general 
                        category of merchandise, excluding sales of the 
                        class or kind of merchandise in that market;
                            ``(iv) the actual profits earned by the 
                        exporter or producer in question on sales 
                        during the most recent period outside the 
                        period of investigation or review in the 
                        country of exportation of the same class or 
                        kind of merchandise, in the usual commercial 
                        quantities and in the ordinary course of trade; 
                        or
                            ``(v) any other evidence that the 
                        administering authority determines to be 
                        reasonably probative of the amount of profit 
                        not less than an amount sufficient to recover 
                        the cost of capital in the country of 
                        exportation,
                provided that the amount for profit so established 
                under this subsection shall not exceed the amount 
                determined under subsection (iii), if any.

SEC. 110. REVIEWS UPON INFORMATION OR REQUEST OR PASSAGE OF TIME.

    Section 751(b) of the Tariff Act of 1930 (19 U.S.C. 1675) is 
amended to read as follows:
    ``(b) Reviews Upon Information or Request or Passage of Time.--
            ``(1) In general.--Whenever the administering authority or 
        the Commission receives information concerning, or a request by 
        an interested party within the meaning of section 1677(9) of 
        this title for the review of, an agreement accepted under 
        section 1671c or 1673c of this title or an antidumping or 
        countervailing duty order under this title or an antidumping 
        finding under the Antidumping Act of 1921, which shows changed 
        circumstances sufficient to warrant a review of such 
        determination, finding or order, it shall conduct such a review 
        after publishing notice of the review in the Federal Register. 
        In reviewing its determination under section 1671c(h)(2) of 
        this title, the Commission shall consider whether, in the 
        changed circumstances, an agreement accepted under section 
        1671c or 1673c(c) of this title continues to eliminate 
        completely the injurious effects of imports of the merchandise.
            ``(2) Limitation of period of review.--In the absence of 
        good cause shown--
                    ``(A) the Commission may not review a determination 
                under 1671d(b) or 1673d(b) of this title; and
                    ``(B) the administering authority may not review a 
                finding of dumping or subsidies under this title or 
                section 1303 of title 19, United States Code, or of 
                dumping under the Antidumping Act of 1921,
        less than twenty-four months after the date of publication of 
        notice of the order, finding, determination or suspension 
        agreement.
            ``(3) Five year review.--Notwithstanding subparagraphs (1) 
        and (2), the administering authority shall initiate once each 
        five years a review to determine whether the expiry of a 
        suspension agreement under section 1671c or 1673c, an 
        antidumping or countervailing duty order under this title, or 
        an antidumping finding under the Antidumping Act of 1921, would 
        be likely to lead to continuation or recurrence of dumping and 
        injury whenever--
                    ``(A) an administrative review conducted under 
                section 1675(a) of this title has been completed within 
                the prior twelve months or is ongoing at a time thirty 
                days prior to the relevant five year deadline or the 
                existing cash deposit rate for any exporter is 10 
                percent ad valorem or more at a time thirty days prior 
                to the relevant five year deadline; or
                    ``(B) a request is made by or on behalf of the 
                domestic industry at least ninety days prior to the 
                five year deadline identified in this subsection.
        The five year period will be measured from the date of an 
        antidumping finding or order, a countervailing duty order or a 
        suspension agreement (as modified by subsection (b)(4)) or from 
        the date of the Federal Register notice of the completion of a 
        review under subsection (b)(3) or a review under subsection 
        (b)(1). Notice of the commencement of the review shall be 
        promptly published in the Federal Register. However, where the 
        requirements of (A) or (B) are satisfied, the review shall be 
        deemed initiated on or before the expiry of the five year 
        deadline regardless of whether notice is published prior to 
        such date.
            ``(4) Dates for existing orders, findings or suspension 
        agreements for purpose of subsection (b)(3).--All existing 
        antidumping and countervailing duty orders or suspension 
        agreements under this title or antidumping findings under the 
        Antidumping Act of 1921 shall be deemed for purposes of 
        subsection (b)(3) to be imposed on the date of entry into force 
        for the Untied States of the agreement establishing the World 
        Trade Organization, July 1, 1995.
            ``(5) In conducting reviews under subsections (b) (3) and 
        (4), the administering authority may elect to treat an ongoing 
        review under 1675(a) as a review for purposes of determining 
        whether dumping will likely continue or recur; evidence that 
        dumping has occurred in the ongoing or immediately preceding 
        review shall create a presumption that dumping is likely to 
        continue or recur.
            ``(6) For purposes of subsection (b)(4) the Commission:
                    ``(A) May consolidate reviews from various 
                countries for the same class or kind and may 
                consolidate related classes or kinds of merchandise 
                based on either simultaneous consideration of the 
                product classes in the original injury investigation or 
                on the similarity in domestic interested parties.
                    ``(B) May commence reviews as early as July 1, 
                1999, to distribute the administrative burden, and 
                should normally complete reviews within twelve months 
                (except that the countervailing duty order, antidumping 
                order, or antidumping finding under review may not be 
                revoked, in whole or in part, prior to July 1, 2000).
                            ``(i) Where the complexity of the review or 
                        the number of reviews being considered warrant, 
                        the Commission may extend completion of the 
                        reviews beyond twelve months to the extent 
                        necessary.
                            ``(ii) Prior to commencing reviews, the 
                        Commission may forward sample questionnaire 
                        forms and likely information needs to potential 
                        interested parties as long as responses to such 
                        informational requests are not due prior to the 
                        commencement of a review and such requests are 
                        not transmitted more than twelve months before 
                        the likely commencement date. The exercise of 
                        this subsection shall not trigger commencement 
                        of the twelve month time limitation on a review 
                        as required by paragraph (B).
                    ``(C) Imports of the same class or kind of 
                merchandise from all outstanding antidumping and 
                countervailing duty orders, findings, or suspension 
                agreements may be cumulatively assessed where 
                cumulative assessment would support a finding of 
                continuation or recurrence of dumping and injury. This 
                section is applicable whether one or more of the 
                findings, orders or suspension agreements involves a 
                regional industry subject to the provisions of (b)(9).
            ``(7) Basis for reviews.--In conducting reviews under 
        subsection (b)(4), such reviews shall not be commenced earlier 
        than July 1, 1999. This paragraph shall not be applied to 
        reviews initiated under paragraph (3)(B).
            ``(8) Factual situations.--For purposes of subsection (b), 
        the administering authority and Commission shall, based on the 
        underlying factual information, consider the following factual 
        situations and those consequences that would normally be 
        expected to result from the revocation of an antidumping order, 
        or finding, or countervailing duty order--
                    ``(A) that dumping or subsidies will continue or 
                recur where dumping or subsidy margins were found in 
                the last completed administrative review or are found 
                in an ongoing review under 1675(a);
                    ``(B) that dumping will continue or recur where 
                dumping margins have been eliminated in the last review 
                period when import volumes have also declined;
                    ``(C) that subsidies will be reconferred where the 
                subsidy program continues but a particular industry has 
                been excluded from its benefits;
                    ``(D) that price depression or suppression will 
                continue or recur where dumping or subsidy margins 
                continue to be found;
                    ``(E) that import volumes will increase where 
                dumping margins continue to be found;
                    ``(F) that import volumes will increase where 
                antidumping duty or countervailing duty orders or 
                suspension agreements or safeguard or other import 
                programs will continue in other countries;
                    ``(G) that import volumes will increase where 
                unutilized capacity exists or capacity expansions are 
                in progress;
                    ``(H) that the like product for purposes of the 
                review will be the same as in the original 
                investigation and will specifically include all 
                products found through scope inquiries or notices of 
                clarification to be covered by the finding, order or 
                suspension agreement;
                    ``(I) that import volumes will increase where 
                offshore inventories, as a ratio to consumption within 
                the United States of a like product, are at levels 
                equal to, or grater than, such volumes at the time of 
                the original investigation; and
                    ``(J) that import volumes will increase where there 
                is the presence of related parties or distribution 
                systems within the United States.
            ``(9) Verification.--All information relied on by the 
        administering authority or Commission shall be verified, when 
        considered appropriate, particularly information pertaining to 
        the likely conduct of foreign producers and, or, importers if 
        an order, finding or suspension agreement were to be revoked or 
        terminated.
            ``(10) Regional domestic industries.--In the case of a 
        countervailing duty or antidumping duty order imposed as a 
        result of an investigation involving a regional domestic 
        industry, the Commission shall determine whether expiration of 
        the order would be likely to lead to continuation or recurrence 
        of material injury or threat of material injury to the regional 
        industry as defined by the Commission in the original 
        investigation, notwithstanding any changes in regional market 
        isolation or regional import concentration since the original 
        investigation, or to a different regional industry satisfying 
        the criteria of section 1677(4)(C) of title 19, United States 
        Code, as of the time of the review.
            ``(11) Changed circumstances.--A party previously excluded 
        from an antidumping or countervailing duty order, having been 
        determined by the administering authority in its original 
        investigation not to be dumping or countervailably subsidized, 
        may be made subject to that order if later found under this 
        subsection to be dumping or receiving countervailable subsidies 
        above a de minimis level.
            ``(12) Standard of review.--
                    ``(A) The test of whether revocation of an order or 
                finding or the termination of a suspension agreement 
                would be likely to lead to continuation or recurrence 
                of injury is necessarily predictive and shall be 
                satisfied where such anticipated injury is not 
                inconsequential, immaterial or unimportant within the 
                meaning of 1677(7)(A). In making this determination the 
                Commission shall take into account the factual 
                situations set forth in subsection (8).
                    ``(B) An affirmative determination under this 
                section can be premised upon any one of six independent 
                standards--
                            ``(i) whether the expiry of the duty would 
                        be likely to lead to continuation of material 
                        injury by reason of dumped or subsidized 
                        imports;
                            ``(ii) whether the expiry of the duty would 
                        be likely to lead to continuation of the threat 
                        of material injury by reasons of dumped or 
                        subsidized imports;
                            ``(iii) whether the expiry of the duty 
                        would be likely to lead to continuation of 
                        material retardation of the establishment of a 
                        domestic industry by reason of dumped or 
                        subsidized imports;
                            ``(iv) whether the expiry of the duty would 
                        be likely to lead to recurrence of material 
                        injury by reason of dumped or subsidized 
                        imports;
                            ``(v) whether the expiry of the duty would 
                        be likely to lead to recurrence of the threat 
                        of material injury by reason of dumped or 
                        subsidized imports; and
                            ``(vi) whether the expiry of the duty would 
                        be likely to lead to recurrence of material 
                        retardation of the establishment of a domestic 
                        industry by reason of dumped or subsidized 
                        imports.
    ``(c) Revocation of Countervailing Duty Order, Antidumping Order, 
or Antidumping Finding; Termination of Suspended Investigation.--
            ``(1) The administering authority may revoke, in whole or 
        in part, a countervailing duty order, antidumping order or 
        antidumping finding, or terminate a suspended investigation, 
        after review under subsection (a) of this section.
            ``(2) The administering authority shall revoke, in whole or 
        in part, an antidumping order or finding or a countervailing 
        duty order or shall terminate a suspended investigation if the 
        Commission determines under subsection (b) that injury would 
        not be likely to continue or recur if the order, finding or 
        suspension agreement were revoked or terminated or where the 
        administering authority determines that dumping or subsidies 
        would not be likely to continue or recur under (b)(3).
            ``(3) Any order, finding or suspended investigation for 
        which a review under subsection (b)(3) has not been commenced 
        within five years of the anniversary date of the order, finding 
        or suspended investigation, as those dates are modified by 
        (b)(4), shall be revoked or terminated upon publication of a 
        notice from the administering authority in the Federal Register 
        that no review has been or will be conducted under (b)(3).
            ``(4) Any revocation or termination under subsection (b) 
        shall apply with respect to unliquidated entries of merchandise 
        entered, or withdrawn from warehouse, for consumption on and 
        after the date of publication of the notice of revocation or 
        termination in the Federal Register. Other revocations or 
        terminations under section 1675 shall apply with respect to 
        unliquidated entries of merchandise entered, or withdrawn from 
        warehouse, for consumption on and after a date determined by 
        the administering authority.
    ``(d) Hearings.--Whenever the administering authority or the 
Commission conducts a review under this section it shall, upon the 
request of any interested party, hold a hearing in accordance with 
section 1677c(b) of this title in connection with that review.''.

SEC. 111. CURRENCY CONVERSION.

    Section 773(a)(4)(C) of the Tariff Act of 1930, as amended (19 
U.S.C. 1677(a)(4)(C)), is amended by inserting the following new 
sections:
                    ``(D) the effects of fluctuations in exchange rates 
                where dumping margins otherwise would be created solely 
                by such fluctuations;
                    ``(E) the effects of sustained changes in exchange 
                rates for sixty days prior to the time such merchandise 
                is first sold within the meaning of paragraph (a)(1) of 
                this section, but only in the context of antidumping 
                investigations pursuant to part II of this title and 
                only where the producer or exporter has changed its 
                prices in order to account for such changes in exchange 
                rates; or
                    ``(F) the purchase of foreign currency on forward 
                markets directly linked to the sale of imported 
                merchandise;''.

SEC. 112. SAMPLING AND AVERAGING.

    Section 777A(a) of the Tariff Act of 1930, as amended (19 U.S.C. 
1677f-1(a)), is amended by--
            (1) striking ``In General.--'' from paragraph (a), striking 
        subparagraph (2), and redesignating paragraph (a) as 
        subparagraph (1) and redesignating subparagraph (1) as (A);
            (2) inserting paragraph ``(a) In General.--'' before the 
        newly designated subparagraph (1);
            (3) adding at the end of subparagraph (1)(A) the following:
                    ``(B) shall decline to take into account 
                adjustments that amount to less than 1 percent of the 
                unadjusted United States price or unadjusted foreign 
                market price, as appropriate.''.
            (4) adding at the end of subparagraph (1) the following new 
        subparagraph:
            ``(2) For the purpose of comparing United States price with 
        foreign market value under Section 1675 of this title, the 
        administering authority shall normally compare the United 
        States price of each entry or each sale with a foreign market 
        value based upon weighted average or preponderant prices 
        determined under section 1677b(a) of this title, or upon 
        constructed value.''.
            (5) adding at the end of paragraph (b) the following: ``For 
        purposes of investigations under part II of this title, where a 
        significant number of producers and exporters or a significant 
        number of different products are involved, the administering 
        authority may sample producers and exporters or products, based 
        upon statistically valid sample techniques, after seeking and 
        taking account of the views of all interest parties. The 
        administering authority in such cases shall, to the extent 
        practically possible within the time constraints of the 
        investigation or review, determine estimated duty deposits and 
        assessment rates for each producer or exporter that so requests 
        and that provides adequate information in a timely manner. 
        Alternatively, the administering authority may determine United 
        States price or foreign market value upon those sales which 
        account for the largest percentage of the volume of subject 
        imports which can reasonably be investigated (normally 60 
        percent or more of the total volume of imports). However, for 
        good cause shown, upon request of petitioner, the administering 
        authority shall investigate producers and exporters accounting 
        for a higher percentage of the volume of subject imports.''.
            (6) adding at the end of paragraph (b) the following new 
        paragraphs:
    ``(c) Special Rule.--For the purpose of carrying out an 
investigation under part II of this title, the administering authority 
shall collect individual transaction prices for United States price and 
foreign market value (including information on purchasers, regions, and 
time period), and shall--
            ``(1) utilize individual transaction prices for the 
        determination of United States price and for comparison to fair 
        value whenever individual transaction prices are used for the 
        determination of fair value; and
            ``(2) utilize weighted average prices for the determination 
        of United States price and for comparison to fair value 
        whenever weighted average prices are used for the determination 
        of fair value;
except that United States price shall be determined for each entry or 
transaction and compared to a weighted average fair value whenever 
there is satisfactory evidence that United States prices vary 
significantly among different purchasers, regions, or by time period 
over 20 percent or more of the quantity sold during the period of 
investigation.
    ``(d) Calculation of Adjustments, Special Rule.--Notwithstanding 
paragraph (b), the administering authority shall average expenses or 
income only across those sales to which such expenses or income are 
attributable for purposes of calculating adjustments to United States 
price or foreign market value under 1677a and 1677b.''.

SEC. 113. MARKET VIABILITY.

    (a) Section 773(a)(1)(B) of the Tariff Act of 1930, as amended (19 
U.S.C. 1677b(a)(1)(B)), is amended as follows:
                    ``(B) if not sold or offered for sale for home 
                consumption, or if the administering authority 
                determines that the quantity sold for home consumption 
                is so small in relation to the quantity sold for 
                exportation to the United States as to form an 
                inadequate basis for comparison, then the price at 
                which so sold or offered for sale for exportation to 
                countries other than the United States, provided that 
                the administering authority does not determine that the 
                foreign market value should be determined on the basis 
                of constructed value,''.
    (b) Section 773(a)(1) of the Tariff Act of 1930, as amended (19 
U.S.C. 1677b(a)(1)) is amended by adding to the end thereof the 
following: ``In determining whether the quantity sold for home 
consumption is so small in relation to the quantity sold for 
exportation to the United States to form an adequate basis for 
comparison, the administering authority may exclude, in appropriate 
circumstances, home market sales to related parties (as defined in 19 
U.S.C. 1677b(e)(4)) or home market sales to companies directly or 
indirectly owning, controlling or holding with the power to vote, 5 
percent or more of the outstanding voting stock or shares of a related 
party.''
    (c) Section 773(d) of the Tariff Act of 1930, as amended (19 U.S.C. 
1677b(d)), is amended by adding at the end thereof the following: 
``Sales in the home market will not be used as the basis for comparison 
when the number of sales is so small in relation to the quantity sold 
for exportation to the United States as to form an inadequate basis for 
comparison. In determining whether the quantity sold for home 
consumption is so small in relation to the quantity sold for 
exportation to the United States to form an adequate basis for 
comparison, the administering authority may exclude, in appropriate 
circumstances, home market sales to related parties (as defined in 19 
U.S.C. 1677b(e)(4)) or home market sales to companies directly or 
indirectly owning, controlling or holding with the power to vote, 5 
percent or more of the outstanding voting stock or shares of a related 
party.''.

SEC. 114. NEGLIGIBLE IMPORTS.

    Section 771(7)(C)(v) of the Tariff Act of 1930, as amended (19 
U.S.C. 1677(7)(C)(v)), is amended by striking the subparagraph and 
inserting in lieu thereof the following:
                            ``(v) Treatment of negligible imports.--The 
                        Commission shall immediately terminate its 
                        investigation where, during its investigation 
                        for purposes of making a preliminary 
                        determination, or final determination, pursuant 
                        to section 1671b of title 19, United State 
                        Code, the Commission determines that the volume 
                        of imports (or sale for importation) from a 
                        particular country of the merchandise which is 
                        subject to investigation accounts for less than 
                        3 percent of imports of such merchandise, 
                        unless countries which individually account for 
                        less than 3 percent of the imports of such 
                        merchandise collectively account for more than 
                        7 percent of imports of the merchandise. 
                        Notwithstanding the foregoing, the Commission 
                        shall not terminate its investigation pursuant 
                        to this subsection with regard to imports from 
                        a particular country where the value of imports 
                        or merchandise subject to investigation, based 
                        on the actual sales of those imports, from that 
                        country during the four most recent quarterly 
                        periods for which the Commission has data 
                        exceeds an amount which bears the same ratio to 
                        $5,000,000 as the average gross national 
                        product of the United States for that period, 
                        as determined by the Department of Commerce, 
                        bears to the average gross national product of 
                        the United States for the four quarters of 
                        calendar year 1994.
                                    ``(I) For purposes of this 
                                subsection, the share of imports from a 
                                particular country of the merchandise 
                                which is subject to investigation shall 
                                be assessed during the most recent 
                                twelve month period for which the 
                                Commission has data.
                                    ``(II) In cases where the 
                                Commission determines circumstances 
                                appropriate to make its determination 
                                on the basis of a regional industry, 
                                pursuant to section 1677(4)(C) of title 
                                19, United States Code, the percentage 
                                of import volume calculated for 
                                purposes of this subsection shall be 
                                based upon imports to that region, 
                                where practicable.''.

SEC. 115. CAPTIVE PRODUCTION.

    Section 771(4) of the Tariff Act of 1930 (19 U.S.C. 1677(4)) is 
amended by adding at the end thereof the following new subparagraph:
                    ``(F) Captive production.--In any investigation 
                involving production that domestic producers both sell 
                in the merchant market and further process into another 
                distinct product, the Commission shall not include the 
                semi-finished production within the definition of the 
                finished like product destined for the merchant market, 
                unless the Commission determines both that semi-
                finished production by the industry competes to a 
                significant degree with all production of the finished 
                product, and that such semi-finished production 
                competes to a significant degree with the imports of 
                the finished products subject to investigation.''.

SEC. 116. DUTY AS A COST.

    (a) Section 772(e)(2) of the Tariff Act of 1930, as amended (19 
U.S.C. 1677a(e)(2)) is amended by striking ``and'' at the end thereof.
    (b) Section 772(e) of the Tariff Act of 1930, as amended (19 U.S.C. 
1677a(e)), is amended by renumbering paragraph (3) as paragraph (4), 
and inserting the following after paragraph (2):
            ``(3) any deposits of estimated antidumping duties made 
        with respect to the merchandise, unless--
                    ``(A) the administering authority determines that 
                the resulting exporter's sales price without adjustment 
                for such duties is equal to or greater than the foreign 
                market value of the merchandise, and
                    ``(B) the exporter has filed a written 
                certification with the administering authority and the 
                United States Customs Service that--
                            ``(i) the transaction price for purposes of 
                        subsection (c) of this section included the 
                        full amount of the estimated antidumping duty 
                        deposited with respect to such merchandise, and
                            ``(ii) the exporter did not directly or 
                        indirectly reimburse or otherwise compensate 
                        the purchaser for such deposits; and
                the administering authority is satisfied that the 
                conditions of subsection (A) and (B) have been 
                fulfilled with respect to such merchandise; and''.
    (c) Section 751(a) of the Tariff Act of 1930, as amended (19 U.S.C. 
1675(a)), is amended by adding to the end thereof the following:
            ``(3) Special rule.--For purposes of the assessments of 
        antidumping duties and the deposits of estimated antidumping 
        duties to be based upon the results of the determination of 
        antidumping duties referred to in subsection (a)(2), where the 
        importer of the merchandise is the exporter as defined in 
        section 771(13), the determination under subsection (a)(2) 
        shall be deemed to be a determination of nominal antidumping 
        duties in that such duties may be subject to further adjustment 
        to reflect the extent to which the duties are absorbed by the 
        exporter. Therefore, in such instances where the importer is 
        the exporter, the administering authority shall instruct the 
        United States Customs Service to assess antidumping duties in 
        the amount of the nominal antidumping duties determined, 
        provided that, prior to liquidation, the exporter--
                    ``(A) provides written certification that--
                            ``(i) the full amount of an assessment on 
                        the merchandise based upon the amount of the 
                        nominal antidumping duties shall be passed on 
                        by the exporter to this unrelated purchaser of 
                        the merchandise; and
                            ``(ii) the exporter shall not directly or 
                        indirectly reimburse or otherwise compensate 
                        its unrelated purchaser for such assessment; 
                        and
                    ``(B) within six months following liquidation, 
                furnishes affirmative and verifiable evidence that such 
                assessment in fact has been passed on to and paid by 
                such purchaser.
        If the exporter fails to certify and furnish the other evidence 
        indicating that the full amount of nominal antidumping duties 
        is passed on by the exporter to its unrelated purchaser, the 
        assessments of antidumping duties shall be based upon the full 
        amount of the nominal antidumping duties plus the amount 
        thereof not shown to be passed on to the unrelated 
        purchaser.''.

               TITLE II--INTELLECTUAL PROPERTY AMENDMENTS

SEC. 201. INTERNATIONAL INTELLECTUAL PROPERTY PROTECTION OBJECTIVES.

    Section 1101(b)(10) of the Omnibus Trade and Competitiveness Act of 
1988, as amended (19 U.S.C. 2901(b)(10)), is amended to provide--
            ``(10) Intellectual property.--The principal objectives of 
        the United States regarding international intellectual property 
        protection are--
                    ``(A) to accelerate the full implementation of 
                parts I, II, and III of the Uruguay Round Agreement on 
                Trade-Related Aspects of Intellectual Property Rights;
                    ``(B) to seek enactment and effective 
                implementation by foreign countries of standards for 
                protection and enforcement of intellectual property 
                rights that supplement and strengthen the standards and 
                obligations contained in the Uruguay Round Agreement on 
                Trade-Related Aspects of Intellectual Property Rights 
                and the North American Free Trade Agreement, including, 
                but not limited to--
                            ``(i) supplementing and strengthening such 
                        standards and obligations through bilateral and 
                        multilateral agreements, in particular, to 
                        cover new and emerging technologies, and new 
                        methods of transmission, distribution, and 
                        uses; and
                            ``(ii) eliminating discrimination, 
                        unreasonable exceptions, or preconditions to 
                        the protection, enforcement, or commercial 
                        enjoyment of the full economic benefits arising 
                        from any use or exploitation of intellectual 
                        property rights;
                    ``(C) to secure fair, equitable, and non-
                discriminatory market access opportunities for United 
                States persons holding intellectual property rights, 
                including rights now, or hereafter, granted by a 
                foreign country to its own nationals under domestic 
                laws and regulations in respect of any use or 
                exploitation of protected works, fixations, or products 
                embodying protected rights;
                    ``(D) to take an active role in the development of 
                the intellectual property regime under the World Trade 
                Organization (WTO);
                    ``(E) to take an active role in the World 
                Intellectual Property Organization (WIPO) and ensure 
                that the WIPO and the WTO work together in a mutually 
                supportive fashion; and
                    ``(F) to ensure that all international agreements 
                entered into by the United States support the high 
                level of protection of intellectual property rights set 
                forth in the Model Intellectual Property Agreement 
                established under section 205 of the GATT Fair Trade 
                Enforcement Act of 1994.
        In addition, the United States Trade Representative, in 
        consultation with the appropriate United States Government 
        agencies, the relevant congressional committees, and the 
        private sector, shall develop other international intellectual 
        property-related objectives as necessary or appropriate.''.

SEC. 202. FAST TRACK AUTHORITY FOR NEW FREE TRADE AGREEMENTS.

    (a) Section 1102 of the Omnibus Trade and Competitiveness Act of 
1988 (19 U.S.C. 2902) is amended by--
            (1) in paragraph (b)(1), replacing ``1993'' with ``year'';
            (2) in subsection (b), renumbering paragraph (2) as (3);
            (3) inserting a new paragraph (b)(2) to provide--
            ``(2) The President may not enter into any negotiation of a 
        new free trade agreement with a foreign country under this 
        paragraph, unless he first determines that such country--
                    ``(A) has substantially implemented parts I, II, 
                and III of the Uruguay Round Agreement on Trade-Related 
                Aspects of Intellectual Property Rights, and
                    ``(B) expresses willingness to negotiate an 
                agreement with the United States under which it will 
                provide intellectual property protection equivalent to 
                that set forth in the Model Intellectual Property 
                Agreement established under section 205 of the GATT 
                Fair Trade Enforcement Act of 1994.'';
            (4) in paragraph (c)(1), replacing ``1993'' with ``year'';
            (5) in subsection (c), renumbering paragraphs (2), (3), 
        (4), and (5) as (3), (4), (5), and (6), respectively;
            (6) inserting a new paragraph (c)(2) to provide--
            ``(2) The President may not enter into any negotiation of a 
        new free trade agreement, including a free trade agreement, 
        with a foreign country under this paragraph, unless he first 
        determines that such country--
                    ``(A) has fully implemented parts I, II, and III of 
                the Uruguay Round Agreement on Trade-Related Aspects of 
                Intellectual Property Rights, and
                    ``(B) expresses willingness to reach an agreement 
                with the United States under which it will provide 
                intellectual property protection equivalent to that set 
                forth in the Model Intellectual Property Agreement 
                established under section 205 of the GATT Fair Trade 
                Enforcement Act of 1994.'';
            (7) inserting a new paragraph (c)(7) to provide--
            ``(7) Upon signing any free trade agreement that contains 
        intellectual property-related provisions that supplement and 
        strengthen the standards and obligations contained in already-
        existing free trade agreements, the President shall seek to 
        bring all United States free trade agreements to this higher 
        level of intellectual property protection, in so far as 
        possible.''; and
            (8) amending renumbered subparagraph (c)(4)(C)(i) to 
        provide--
                            ``(i) provides written notice of such 
                        negotiations, including his determination under 
                        paragraph (c)(2), to the Committee on Finance 
                        of the Senate and the Committee on Ways and 
                        Means of the House of Representatives, and''.
    (b) Section 1103(c) of the Omnibus Trade and Competitiveness Act of 
1988 (19 U.S.C. 2903(c)) is amended by inserting a new paragraph (3) to 
provide--
            ``(3) The fast track procedures shall not apply to any 
        implementing bill that contains a provision approving of any 
        trade agreement that is entered into under section 1102(c), if 
        the requirements of section 1102(c)(2) (as renumbered by the 
        Act) are not met.''.

SEC. 203. SPECIAL 301.

    Section 182 of the Trade Act of 1974, as amended (19 U.S.C. 2242), 
is amended by--
            (1) in paragraph (a)(1)--
                    (A) deleting the word ``or'' at the end of 
                subparagraph (a)(1)(A);
                    (B) replacing the word ``and'' at the end of 
                subparagraph (a)(1)(B) with the word ``or'', and
                    (C) adding a new subparagraph (a)(1)(C) to 
                provide--
                    ``(C) deny non-discriminatory market access 
                opportunities for United States persons, including 
                access related to any exploitation or enjoyment of 
                commercial benefits from exercising rights in protected 
                works, fixations, or products embodying protected 
                works, and'';
            (2) inserting a new paragraph (a)(3) to provide--
            ``(3) In making the identifications required under 
        paragraphs (1) and (2), the Trade Representative shall take 
        into account--
                    ``(A) the history of intellectual property laws and 
                practices of foreign countries, including any past 
                identifications under these paragraphs, and
                    ``(B) the history of the efforts of the United 
                States, and the responses to the foreign country, to 
                achieve adequate and effective protection of 
                intellectual property rights.''; and
            (3) amending subsection (d) by--
                    (A) changing the initial paragraph of paragraph 
                d(2) to provide--
            ``(2) A foreign country denies adequate and effective 
        protection of intellectual property rights if the country--
                    ``(A) has not fully implemented parts I, II, and 
                III of the Uruguay Round Agreement on Trade-Related 
                Aspects of Intellectual Property Rights, or
                    ``(B) denies adequate and effective means under the 
                laws of the foreign country for persons who are not 
                citizens or nationals of such foreign country to 
                secure, exercise, enjoy full commercial benefits, and 
                enforce rights relating to patients, process patents, 
                registered trademarks, copyrights and related rights, 
                trade secrets, and mask works, notwithstanding that the 
                foreign country may have fully implemented parts I, II, 
                and III of the Uruguay Round Agreement on Trade-Related 
                Aspects of Intellectual Property Rights, or the 
                obligations of any other bilateral, regional, or 
                multilateral agreement.'';
                    (B) changing the initial paragraph of paragraph 
                (d)(3) to provide--
            ``(3) A foreign country denies fair and equitable market 
        access if the foreign country effectively denies access to a 
        market for a product protected by a copyright or related right, 
        mask work, registered trademark, trade secret, patent, or 
        process patent through the use of laws, procedures, or 
        regulations which--''; and
                    (C) adding a new paragraph (d)(4) to provide--
            ``(4) A foreign country denies non-discriminatory market 
        access opportunities for United States persons in respect of 
        establishing business operations or any use, benefit, or 
        exploitation of protected works, fixations, or products 
        embodying protected rights, when it grants access to methods of 
        distribution, collection of revenues generated from the use or 
        fixation of a product embodying protected rights, or any other 
        benefit in relation to such works, fixations, or products 
        embodying protected rights, on terms more advantageous to its 
        own nationals than to those nationals of another country.''.

SEC. 204. AMENDMENT OF SECTION 337 OF THE TARIFF ACT OF 1930.

    (a) Section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 
1337), is amended by adding at the end thereof the following new 
section--

``SEC. 337A. UNFAIR PRACTICES IN DOMESTIC TRADE.

    ``(a) Unlawful Activities; Covered Industries; Definitions.--
            ``(1) Subject to paragraph (2), the following are unlawful, 
        and when found by the Secretary of Commerce (hereafter referred 
        to as the Secretary) to exist shall be dealt with, in addition 
        to any other provision of law, as provided in this section:
                    ``(A) The sale of articles in the United States by 
                the owner, distributor, or consignee, of articles 
                that--
                            ``(i) infringe a valid and enforceable 
                        United States patent or a valid and enforceable 
                        United States copyright registered under title 
                        17; or
                            ``(ii) are made, produced, processed, or 
                        mined under, or by means of, a process covered 
                        by the claims of a valid and enforceable United 
                        States patent.
                    ``(B) The sale of articles in the United States by 
                the owner, distributor, or consignee, of articles that 
                infringe a valid and enforceable United States 
                trademark registered under the Trademark Act of 1946.
                    ``(C) The sale of articles in the United States by 
                the owner, distributor, or consignee, of a 
                semiconductor chip product in a manner that constitutes 
                infringement of a mask work registered under chapter 9 
                of title 17.
            ``(2) For purposes of this section, the phrase `owner, 
        distributor, or consignee' includes any agent of the owner, 
        distributor, or consignee.
    ``(b) Investigations of Violations by the Secretary of Commerce.--
            ``(1) The Secretary of Commerce shall investigate any 
        alleged violation of this section on complaint under oath or 
        upon its initiative, except as provided in subsection (3). Upon 
        commencing any such investigation, the Secretary shall publish 
        notice thereof in the Federal Register. The Secretary shall 
        conclude any such investigation, and make its determination 
        under this section, at the earliest practicable time, but not 
        later than one year (eighteen months in more complicated cases) 
        after the date of publication of notice of such investigation. 
        The Secretary shall publish in the Federal Register its reasons 
        for designating any investigation as a more complicated 
        investigation. For purposes of the one year and eighteen month 
        period prescribed by this subsection, there shall be excluded 
        any period of time during which such investigation is suspended 
        because of proceedings in a court or agency of the United 
        States involving similar questions concerning the subject 
        matter of such investigations.
            ``(2) During the course of each investigation under this 
        section, the Secretary shall consult with, and seek advice and 
        information from the Department of Health and Human Services, 
        the Department of Justice, the Federal Trade Commission, and 
        such other departments and agencies as it considers 
        appropriate.
            ``(3) The Secretary shall not investigate any alleged 
        violation of this section where the articles sold in the United 
        States have been or are being investigated under section 1337 
        of this title. If, upon investigation of an alleged violation 
        of this section on complaint or upon its own initiative, the 
        Secretary determines that the articles alleged to violate this 
        section are imported or are sold for importation or are sold 
        after importation by the owner, importer, or consignee, then 
        the investigation by the Secretary shall be terminated and the 
        matter referred to the International Trade Commission under 
        section 1337 of this title.
    ``(c) Determinations; Review.--The Secretary shall determine, with 
respect to each investigation conducted by it under this section, 
whether or not there is a violation of this section, except that the 
Secretary may, by issuing a consent order or on the basis of a 
settlement agreement, terminate any such investigation, in whole or in 
part, without making such a determination. Each determination under 
subsection (c), (d), (e), (f), (g), or (h) of this section shall be 
made on the record after notice and opportunity for a hearing in 
conformity with the provisions of subchapter II of chapter 5 of title 
5. All legal and equitable defenses may be presented in all cases. Any 
person adversely affected by a final determination of the Secretary 
under subsection (c), (d), (e), (f), (g), or (h) of this section may 
appeal such determination, within sixty days after the determination 
becomes final, to the United States Court of Appeals for the Federal 
Circuit for review in accordance with chapter 7 of title 5. 
Notwithstanding the foregoing provisions of this subsection, 
determination by the Secretary under subsection (c), (d), (e), (f), 
(g), or (h) of this section with respect to its findings on the public 
health and welfare, competitive conditions in the United States 
economy, the production of like or directly competitive articles in the 
United States and United States consumers, or the appropriate remedy 
shall be reviewable in accordance with section 706 of title 5.
    ``(d) Preliminary Injunction During Investigation; Procedures 
Applicable.--
            ``(1) If during the course of an investigation under this 
        section, the Secretary determines that there is reason to 
        believe that there is a violation of this section, it may issue 
        a preliminary injunction, enjoining the person from selling 
        like or directly competitive articles in the United States. An 
        Administrative Law Judge shall issue a preliminary injunction 
        directing the person not to sell or offer for sale the like or 
        directly competitive articles in the United States.
            ``(2) A complainant may petition the Secretary for the 
        issuance of a preliminary injunction under this subsection. The 
        Secretary shall make a determination with regard to such 
        petition by no later than the ninetieth day after the date on 
        which the Secretary's notice of investigation is published in 
        the Federal Register. The Secretary may extend the ninety day 
        period for an additional sixty days in a case it designates as 
        a more complicated case. The Secretary shall publish in the 
        Federal Register its reasons why it designated the case as 
        being more complicated. The Secretary may require the 
        complainant to post a bond as a prerequisite to the issuance of 
        an order under this subsection.
            ``(3) The Secretary may grant preliminary relief under this 
        subsection or subsection (e) of this section to the same extent 
        as preliminary injunctions and temporary restraining orders may 
        be granted under the Federal Rules of Civil Procedure.
    ``(e) Cease and Desist Orders; Civil Penalty for Violations of 
Orders.--
            ``(1) The Secretary shall issue and cause to be served on 
        any person violating this section, or believed to be violating 
        this section, as the case may be, an order directing such 
        person to cease and desist from engaging in the unfair methods 
        or acts involved, unless after considering the effect of such 
        order upon the public health and welfare, competitive 
        conditions in the United States economy, the production of like 
        or directly competitive articles in the United States, and 
        United States consumers, if finds that such order should not be 
        issued. The Secretary may at any time, upon such notice and in 
        such manner as it deems proper, modify or revoke any such 
        order.
            ``(2) Any persons who violates an order issued by the 
        Secretary under paragraph (1) after it has become final shall 
        forfeit and pay to the United States a civil penalty for each 
        day on which the violation occurs of not more than the greater 
        of $100,000 or twice the value of the articles sold on such day 
        in violation of the order. Such penalty shall accrue to the 
        United States and may be recovered for the United States in a 
        civil action brought by Commerce in the Federal District Court 
        for the District of Columbia or for the district in which the 
        violation occurs. In such actions, the United States district 
        courts may issue mandatory injunctions incorporating the relief 
        sought by the Secretary as they deem appropriate in the 
        enforcement of such final orders.
    ``(f) Cease and Desist Order; Conditions and Procedures 
Applicable.--If--
            ``(1) a complaint is filed against a person under this 
        section;
            ``(2) the complaint and a notice of investigation are 
        served on the person;
            ``(3) the person fails to respond to the complaint and 
        notice or otherwise fails to appear to answer the complaint and 
        notice;
            ``(4) the person fails to show good cause why the person 
        should not be found in default; and
            ``(5) the complainant seeks relief limited solely to that 
        person;
        the Secretary shall presume the facts alleged in the complaint 
        to be true and shall, upon request, issue a preliminary 
        injunction or a cease and desist order, or both, limited to 
        that person unless, after considering the effect of such 
        exclusion or order upon the public health and welfare, 
        competitive conditions in the United States economy, and the 
        United States consumers, the Secretary finds that such 
        exclusion or order should not be issued.
    ``(g) Sanctions for Abuse of Discovery and Abuse of Process.--The 
Secretary may by rule prescribe sanctions for abuse of discovery and 
abuse of process to the extent authorized by rule 11 and rule 37 of the 
Federal Rules of Civil Procedure.
    ``(h) Forfeiture.--
            ``(1) In addition to taking action under subsection (e) or 
        (f) of this section, the Secretary may issue an order providing 
        that any article sold in the United States or offered for sale 
        in violation of the provisions of this section be seized and 
        forfeited to the United States if--
                    ``(A) the owner, distributor, or consignee of the 
                article previously attempted to sell the article in the 
                United States; and
                    ``(B) the Secretary provide the owner, distributor, 
                or consignee of the articles written notice of--
                            ``(i) such order, and
                            ``(ii) the seizure and forfeiture that 
                        would result from any further violations of the 
                        order.
            ``(2) Any forfeiture order issued by the Secretary under 
        paragraph (1) may be enforced for the United States in a civil 
        action brought by Commerce in the Federal District Court for 
        the District of Columbia or for the district in which the 
        violation occurs. In such actions, the United States district 
        courts may issue mandatory injunctions incorporating the relief 
        sought by the Secretary as they deem appropriate in the 
        enforcement of such orders.
    ``(i) Referral to President.--
            ``(1) If the Secretary determines that there is a violation 
        of this section, or that, for purposes of subsection (d), (e), 
        (f), (g), or (h) of this section, there is reason to believe 
        that there is such a violation, if shall--
                    ``(A) published such determination in the Federal 
                Register, and
                    ``(B) transmit to the President a copy of such 
                determination and the action taken under subsection 
                (d), (e), (f), (g), or (h) of this section, with 
                respect thereto, together with the record upon which 
                such determination is based.
            ``(2) If, before, the close of the sixty day period 
        beginning on the day after the day on which he receives a copy 
        of such determination, the President, for policy reasons, 
        disapproves such determination and notifies the Secretary of 
        his disapproval, the, effective on the date of such notice, 
        such determination and the action taken under subsections (d), 
        (e), (f), (g), or (h) of this section with respect thereto 
        shall have no force or effect.
            ``(3) Subject to the provisions of paragraph (2), such 
        determination shall be effective upon publication thereof in 
        the Federal Register.
            ``(4) The President does not disapprove such determination 
        within such sixty day period, or if he notifies the Secretary 
        before the close of such period that he approves such 
        determination, then, for purposes of paragraph (3) and 
        subsection (d) of this section such determination shall become 
        final on the day after the close of such period on the day on 
        which the President notifies the Secretary of his approval, as 
        the case may be.
    ``(j) Period of Effectiveness.--
            ``(1) Any enforcement provisions invoked, including cease 
        and desist orders pursuant to subsection (e) or (f), shall 
        continue in effect until the Secretary finds the conditions 
        which lead to such findings no longer exist.
            ``(2) If any persons or company who has previously been 
        found by the Secretary to be in violation of this section 
        petitions the Secretary for a determination that the petitioner 
        is no longer in violation of this section or for a modification 
        or recission of an order--
                    ``(A) the burden of proof in any proceeding before 
                the Secretary regarding such petition shall be on the 
                petitioner; and
                    ``(B) relief may be granted by the Secretary with 
                respect to such petition--
                            ``(i) on the basis of new evidence or 
                        evidence that could not have been presented at 
                        the prior proceeding, or
                            ``(ii) on grounds which would permit relief 
                        from a judgment or order under the Federal 
                        Rules of Civil Procedure.
    ``(k) Definition of United States.--For purposes of this section 
and sections 1338 and 1340 of this title, the term `United States' 
means the customs territory of the United States as defined in general 
note 2 of the Harmonized Tariff Schedule of the United States.
    ``(l) Disclosure of Confidential Information.--
            ``(1) Information submitted to the Secretary or exchanged 
        among the parties in connection with proceedings under this 
        section which is properly designated as confidential pursuant 
        to rules promulgated by the Secretary may not be disclosed 
        (except under a protective order issued under regulation which 
        authorizes limited disclosure of such information) to any 
        person (other than a person described in paragraph (2)) without 
        the consent of the person submitting it.
            ``(2) Notwithstanding the prohibition contained in 
        paragraph (1), information referred to in that paragraph may be 
        disclosed to--
                    ``(A) an officer or employee of the Department of 
                Commerce who is directly concerned with carrying out 
                the investigation in connection with which the 
                information is submitted, or
                    ``(B) an officer or employee of the United States 
                Government who is directly involved in the review under 
                subsection (i) of this section.''.

SEC. 205. GENERALIZED SYSTEM OF PREFERENCES.

    Section 502 of the Trade Act of 1974, as amended (19 U.S.C. 2462), 
is amended by--
            (1) redesignating subsections (c), (d), and (e) as (d), 
        (e), and (f), respectively; and
            (2) inserting a new subsection (c) to provide--
    ``(c)(1) Effective one year after the entry into force of the 
Uruguay Round Agreement establishing the World Trade Organization, the 
President shall not designate any country a beneficiary developing 
country under this section if such country has not fully implemented 
parts I, II, and III of the Uruguay Round Agreement on Trade-Related 
Aspects of Intellectual Property Rights.
    ``(2) If a country is a least developed country, the President may 
designate such country a beneficiary developing country for four 
additional years.
    ``(3) If the President certifies to Congress that a non least 
developed country is making timely, overall, and significant progress 
toward full implementation of parts I, II, and III of the Uruguay Round 
Agreement on Trade-Related Aspects of Intellectual Property Rights, the 
President may designate such country a beneficiary developing country 
for one additional year.'';
            (3) deleting redesignated paragraph (d)(5), and renumbering 
        redesignated paragraphs (d)(6) and (d)(7) as paragraphs (d)(5) 
        and (d)(6), respectively; and
            (4) adding a new subsection (g) to provide--
    ``(g) The President shall review annually whether each country that 
has been designated under this section as a beneficiary developing 
country, and has fully implemented parts I, II, and III of the Uruguay 
Round Agreement on Trade-Related Aspects of Intellectual Property 
Rights, continues to fully implement that agreement.''.

SEC. 206. MODEL INTELLECTUAL PROPERTY AGREEMENT.

    (a) The United States Trade Representative, in consultation with 
other appropriate United States Government agencies and the private 
sector, shall maintain a Model Intellectual Property Agreement 
embodying provisions for intellectual property protection that 
supplement and strengthen the standards and obligations contained in 
the Uruguay Round Agreement on Trade-Related Aspects of Intellectual 
Property Rights and the North American Free Trade Agreement.
    (b) In all international negotiations involving intellectual 
property protection, the Model Intellectual Property Agreement shall 
represent United States negotiating objectives.
    (c) The United States Trade Representative, in consultation with 
other appropriate United States government agencies and the private 
sector, shall review periodically the Model Intellectual property 
Agreement to ensure that it reflects new and emerging developments in 
intellectual property protection and new and emerging technologies.

SEC. 207. EFFORTS BY UNITED STATES DIPLOMATS.

    The Secretary of State shall instruct all heads of United States 
diplomatic missions abroad to include intellectual property protection 
as a priority objective of the mission.

SEC. 208. PRIVATE SECTOR INVOLVEMENT IN INTERNATIONAL DISPUTE 
              SETTLEMENT.

    The United States Trade Representative shall develop and maintain a 
procedure to ensure the exchange of information between interested 
United States private sector representatives and the United States 
Trade Representative in preparation for international intellectual 
property-related dispute settlement proceedings to which the United 
States is a party.

SEC. 209. INCENTIVES TO IMPROVE FOREIGN INTELLECTUAL PROPERTY 
              PROTECTION.

    (a) Notwithstanding any other provision of United States law, the 
President is authorized to undertake the following actions, where 
appropriate, with respect to developing countries to encourage and help 
those countries to improve their protection of intellectual property--
            (1) provide Overseas Private Investment Corporation 
        insurance for intellectual property assets;
            (2) require United States foreign assistance programs to 
        provide support for development of national intellectual 
        property laws and regulations, as well as for development of 
        the infrastructure necessary for protection of intellectual 
        property;
            (3) establish technical cooperation committees on 
        intellectual property standards within regional organizations, 
        such as the Sai Pacific Economic Cooperation group; and
            (4) establish, as a joint effort between the United States 
        government and the United States private sector, a council to 
        facilitate and provide intellectual property-related technical 
        assistance, through the United States Agency for International 
        Development.
    (b) Notwithstanding any other provision of United States law, the 
President is authorized, where appropriate, to require United States 
representatives to multilateral lending institutions to seek 
establishment of programs within these institutions to support strong 
intellectual property protection in recipient countries that have fully 
implemented parts I, II, and III of the Uruguay Round Agreement on 
Trade-Related Aspects of Intellectual Property Rights.

SEC. 210. INTELLECTUAL PROPERTY RIGHTS BORDER ENFORCEMENT MAINTENANCE.

    (a) The prima facie requirements of articles 51-60 of the Uruguay 
Round Agreement on Trade-Related Aspects of Intellectual Property 
regarding Border Measures shall not unduly burden current intellectual 
property rights owners and shall not be implemented in any way to 
decrease the level of protection presently available.
    (b) The United States Trade Representative should seek to negotiate 
through bilateral and multilateral agreements, the earliest possible 
full implementation of the border enforcement provisions against the 
importations of infringing goods enumerated in parts I, II, and III of 
the Uruguay Round Agreement on Trade-Related Aspects of Intellectual 
Property Rights, and if warranted, require of foreign trading partners 
which chronically violate Intellectual Property Rights, the 
establishment of an export control monitoring system. The decision to 
include an export monitoring requirement is to be made by the United 
States Trade Representative and should be based upon evidence which 
includes, but is not limited to--
            (1) United States customs Service seizure statistics 
        demonstrating that sufficient numbers of shipments were sized 
        for Intellectual Property Rights violations to indicate that an 
        export problem exists; and
            (2) evidence provided by Intellectual Property Rights 
        owners demonstrating that the export of infringing goods is a 
        significant threat to the marketing, distribution or sale of 
        authorized merchandise.

                   TITLE III--MARKET OPENING MEASURES

SEC. 301. ACTION BY THE PRESIDENT TO OPEN FOREIGN MARKETS.

    (a) A new section 311 of the Trade Act of 1974 is created as 
follows:

``SEC. 311. ACTION BY THE PRESIDENT TO OPEN FOREIGN MARKETS.

    ``(a) The President shall have the authority to impose civil 
penalties on foreign or domestic persons that engage in restrictive 
business practices, including price-fixing, bid-rigging, joint 
restraint of output, market allocation, boycotts, tying arrangements, 
or similar activities, when such practices foreclose United States 
exports or otherwise burden or restrict United States foreign commerce.
    ``(b) The President in consultations with the United States Trade 
Representative, may initiate an investigation to determine whether 
action is appropriate under paragraph (a) upon the filing of a petition 
by an interested party or on the President's own motion.
    ``(c) During the course of an investigation initiated under 
paragraph (b), the President may require the posting of bond or cash 
deposits, or take other provisional measures, to secure the full 
cooperation of the parties to the investigation.
    ``(d) The President may negotiate settlement agreements with the 
parties to an investigation or their government under paragraph (b) 
which result in the elimination--
            ``(1) of the practice under investigation; or
            ``(2) of the restriction on United States exports or other 
        burden or restriction on United States commerce.
    ``(e) Civil penalties imposed by the President pursuant to this 
section shall be levied against the United States business operations 
of foreign or domestic persons found to have engaged in restrictive 
business practices under this section and shall be commensurate with 
the degree of financial injury arising out of the foreclosure of United 
States exports or other burden or restriction on United States 
commerce.
    ``(f) The president shall prescribe by Executive Order appropriate 
rules and procedures of implementing this section.
    ``(g) The President shall negotiate bilateral and multilateral 
agreements to secure the elimination of restrictive business practices 
in international commerce which have the effect of foreclosing United 
States exports or otherwise burdening or restricting United States 
commerce.''.

SEC. 302. AMENDMENTS TO SECTION 301.

    (a) Section 301 of the Trade Act of 1974, as amended (19 U.S.C. 
2411), is amended by--
            (1) in paragraph (a)(1), deleting the phrase ``within the 
        power of the President'' and replacing it with the phrase 
        ``notwithstanding and other provision of United States law'';
            (2) in paragraph (b)(2), deleting phrase ``within the power 
        of the President'' and replacing it with the phrase 
        ``notwithstanding any other provision of United States Law'';
            (3) in subsection (c),
                    (A) deleting paragraph (5),
                    (B) renumbering paragraph (3) and (4) as (4) and 
                (5), respectively,
                    (C) inserting a new paragraph (3) to provide--
            ``(3) For purposes of carrying out the provisions of 
        subsection (a) or (b), the President is authorized, 
        notwithstanding any other provision of United States law, to 
        take actions with respect to any area pertinent to relations 
        with the foreign country that is the target of the action, 
        including but not limited to, trade in any goods or 
        services.'',
                    (D) in renumbered paragraph (4), replacing ``Trade 
                Representative'' with ``President or the Trade 
                Representative'', and
                    (E) in paragraph (6), replacing ``Trade 
                Representative'' with ``President or the Trade 
                Representative''; and
            (4) in subsection (d), amending clause (d)(3)(B)(i)(II) to 
        provide--
                            ``(II) provision of adequate and effective 
                        protection of intellectual property rights, 
                        notwithstanding that the country may have fully 
                        implemented parts I, II, and III of the Uruguay 
                        Round Agreement on Trade-Related Intellectual 
                        Property Rights or the obligations of any other 
                        bilateral, regional, or multilateral agreement, 
                        or''.
    (b) Section 302(a)(2) of the Trade Act of 1974, as amended (19 
U.S.C. 2412(a)(2)), is amended by adding a second sentence to provide: 
``If the petition alleges that a foreign country fails to provide 
adequate and effective protection of intellectual property rights, 
alleges the elements necessary for action under section 301(a) or (b), 
and provides information reasonably available to the petitioner in 
support of such allegations, the Trade Representative shall initiate an 
investigation.''.

SEC. 303. SPECIALTY STEEL PRODUCT TARIFFS.

    It is the sense of Congress that every effort be taken by the 
United States Government to conclude the Multilateral Steel Agreement 
prior to the effective date of the legislation enacted to implement the 
Uruguay Round of the General Agreement on Tariffs and Trade. A 
principal negotiating objective of the United States in the 
Multilateral Steel Agreement, with respect to unfair trade practices, 
shall be to obtain rules ensuring the elimination of all injurious 
subsidies. In this regard, prior to implementation of the Uruguay Round 
of the General Agreement on Tariffs and Trade consideration shall be 
given by United States negotiators to the potential impact the 
elimination of tariffs on specialty steel products would have on the 
specialty steel industry absent a successful conclusion of the MSA. The 
term ``specialty steel product'' shall be defined as any product 
classified under the following item numbers of the Harmonized Tariff 
Schedules of United States: 7218-7223, 7224.10.0045, 7224.90.0015-
7224.90.0035, 7225.10-7225.20, 7225.30.10, 7225.30.50, 7225.40.10, 
7225.40.50, 7225.50.10, 7226.10-7226.20, 7226.91.05-7226.91.25, 
7226.92.10-7226.92.30, 7227.10, 7227.90.10-7227.90.20, 7228.10, 
7228.30.20-7228.30.60, 7228.50.10, 7228.60.10, 7229.10, 7304.41-
7304.49, and 7306.40.

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