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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5110 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5110

To clarify the country of origin of certain articles imported into the 
    United States for purposes of certain trade enforcement actions.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 19, 2024

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

_______________________________________________________________________

                                 A BILL

 
To clarify the country of origin of certain articles imported into the 
    United States for purposes of certain trade enforcement actions.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stopping Adversarial Tariff Evasion 
Act''.

SEC. 2. CLARIFICATION OF COUNTRY OF ORIGIN CRITERIA FOR ENFORCEMENT 
              ACTION UNDER TRADE AGREEMENTS OR IN RESPONSE TO CERTAIN 
              FOREIGN TRADE PRACTICES.

    Section 301(d) of the Trade Act of 1974 (19 U.S.C. 2411(d)) is 
amended by adding at the end the following:
            ``(10)(A) Any action taken by the Trade Representative 
        under this section, with respect to a foreign adversary 
        country, shall apply to any article that is produced, 
        manufactured, or that underwent final assembly by a foreign 
        adversary party or an entity owned, controlled, directed, or 
        operated by a foreign adversary party, as if such article 
        originated in the foreign adversary country.
            ``(B) In this paragraph:
                    ``(i) The term `control' has the meaning given that 
                term in section 800.208 of title 31, Code of Federal 
                Regulations (as in effect on the date of the enactment 
                of the Stopping Adversarial Tariff Evasion Act).
                    ``(ii) The term `entity owned, controlled, 
                directed, or operated by a foreign adversary party' 
                includes any entity for which, on any date during the 
                most recent 12-month period, not less than 25 percent 
                of the equity interests in such entity are held 
                directly or indirectly by 1 or more foreign adversary 
                parties including through--
                            ``(I) interests in co-investment vehicles, 
                        joint ventures, or similar arrangements; or
                            ``(II) a derivative financial instrument or 
                        contractual arrangement between the entity and 
                        a foreign adversary party, including any such 
                        instrument or contract that seeks to replicate 
                        any financial return with respect to such 
                        entity or interest in such entity.
                    ``(iii) The term `foreign adversary country' means 
                any of the following:
                            ``(I) The People's Republic of China.
                            ``(II) The Russian Federation.
                            ``(III) The Islamic Republic of Iran.
                            ``(IV) The Democratic People's Republic of 
                        Korea.
                            ``(V) The Republic of Cuba.
                            ``(VI) The Bolivarian Republic of Venezuela 
                        during any period of time during which Nicholas 
                        Maduro is President of the Republic.
                            ``(VII) The Syrian Arab Republic.
                    ``(iv) The term `foreign adversary party' means any 
                of the following:
                            ``(I) The government of a foreign adversary 
                        country, including any agency, government 
                        instrumentality, official, or agent of such a 
                        government.
                            ``(II) Any entity organized under the laws 
                        of a foreign adversary country (or any 
                        political subdivision thereof).
                            ``(III) Any entity the headquarters of 
                        which is located within a foreign adversary 
                        country.
                            ``(IV) Any entity substantively involved in 
                        the industrial policies or military-civil 
                        fusion strategy of the People's Republic of 
                        China, including by accepting funding from, 
                        performing a service for, or receiving a 
                        subsidy from the People's Republic of China 
                        related to such policies or strategy.''.

SEC. 3. CLARIFICATION OF COUNTRY OF ORIGIN CRITERIA FOR ENFORCEMENT 
              ACTION BY PRESIDENT AFTER DETERMINATION OF IMPORT INJURY.

    Section 203 of the Trade Act of 1974 (19 U.S.C. 2253) is amended by 
adding at the end the following:
    ``(h) Application of Action to Foreign Adversary Parties.--(1) Any 
action taken under this section shall apply to any article that is 
produced, manufactured, or that underwent final assembly by a foreign 
adversary party or an entity owned, controlled, directed, or operated 
by a foreign adversary party, as if such article originated in a 
foreign adversary country.
    ``(2) In this subsection:
            ``(A) The term `control' has the meaning given that term in 
        section 800.208 of title 31, Code of Federal Regulations (as in 
        effect on the date of the enactment of the Stopping Adversarial 
        Tariff Evasion Act).
            ``(B) The term `entity owned, controlled, directed, or 
        operated by a foreign adversary party' includes any entity for 
        which, on any date during the most recent 12-month period, not 
        less than 25 percent of the equity interests in such entity are 
        held directly or indirectly by 1 or more foreign adversary 
        parties including through--
                    ``(i) interests in co-investment vehicles, joint 
                ventures, or similar arrangements; or
                    ``(ii) a derivative financial instrument or 
                contractual arrangement between the entity and a 
                foreign adversary party, including any such instrument 
                or contract that seeks to replicate any financial 
                return with respect to such entity or interest in such 
                entity.
            ``(C) The term `foreign adversary country' means any of the 
        following:
                    ``(i) The People's Republic of China.
                    ``(ii) The Russian Federation.
                    ``(iii) The Islamic Republic of Iran.
                    ``(iv) The Democratic People's Republic of Korea.
                    ``(v) The Republic of Cuba.
                    ``(vi) The Bolivarian Republic of Venezuela during 
                any period of time during which Nicholas Maduro is 
                President of the Republic.
                    ``(vii) The Syrian Arab Republic.
            ``(D) The term `foreign adversary party' means any of the 
        following:
                    ``(i) The government of a foreign adversary 
                country, including any agency, government 
                instrumentality, official, or agent of such a 
                government.
                    ``(ii) Any entity organized under the laws of a 
                foreign adversary country (or any political subdivision 
                thereof).
                    ``(iii) Any entity the headquarters of which is 
                located within a foreign adversary country.
                    ``(iv) Any entity substantively involved in the 
                industrial policies or military-civil fusion strategy 
                of the People's Republic of China, including by 
                accepting funding from, performing a service for, or 
                receiving a subsidy from the People's Republic of China 
                related to such policies or strategy.''.

SEC. 4. CLARIFICATION OF COUNTRY OF ORIGIN CRITERIA FOR ENFORCEMENT 
              ACTION TO SAFEGUARD NATIONAL SECURITY.

    Section 232(c) of the Trade Expansion Act of 1962 (19 U.S.C. 
1862(c)) is amended by adding at the end the following:
            ``(4)(A) Any action taken by the President under paragraph 
        (1) shall apply to any article that is produced, manufactured, 
        or that underwent final assembly by a foreign adversary party 
        or an entity owned, controlled, directed, or operated by a 
        foreign adversary party, as if such article originated in a 
        foreign adversary country.
            ``(B) For the purposes of this paragraph the following 
        definitions apply:
                    ``(i) The term `control' has the meaning given that 
                term in section 800.208 of title 31, Code of Federal 
                Regulations (as in effect on the date of the enactment 
                of the Stopping Adversarial Tariff Evasion Act).
                    ``(ii) The term `entity owned, controlled, 
                directed, or operated by a foreign adversary party' 
                includes any entity for which, on any date during the 
                most recent 12-month period, not less than 25 percent 
                of the equity interests in such entity are held 
                directly or indirectly by 1 or more foreign adversary 
                parties including through--
                            ``(I) interests in co-investment vehicles, 
                        joint ventures, or similar arrangements; or
                            ``(II) a derivative financial instrument or 
                        contractual arrangement between the entity and 
                        a foreign adversary party, including any such 
                        instrument or contract that seeks to replicate 
                        any financial return with respect to such 
                        entity or interest in such entity.
                    ``(iii) The term `foreign adversary country' means 
                any of the following:
                            ``(I) The People's Republic of China.
                            ``(II) The Russian Federation.
                            ``(III) The Islamic Republic of Iran.
                            ``(IV) The Democratic People's Republic of 
                        Korea.
                            ``(V) The Republic of Cuba.
                            ``(VI) The Bolivarian Republic of Venezuela 
                        during any period of time during which Nicholas 
                        Maduro is President of the Republic.
                            ``(VII) The Syrian Arab Republic.
                    ``(iv) The term `foreign adversary party' means any 
                of the following:
                            ``(I) The government of a foreign adversary 
                        country, including any agency, government 
                        instrumentality, official, or agent of such a 
                        government.
                            ``(II) Any entity organized under the laws 
                        of a foreign adversary country (or any 
                        political subdivision thereof).
                            ``(III) Any entity the headquarters of 
                        which is located within a foreign adversary 
                        country.
                            ``(IV) Any entity substantively involved in 
                        the industrial policies or military-civil 
                        fusion strategy of the People's Republic of 
                        China, including by accepting funding from, 
                        performing a service for, or receiving a 
                        subsidy from the People's Republic of China 
                        related to such policies or strategy.''.
                                 <all>
```