I 

114TH CONGRESS 

1ST SESSION H. R. 2523 

To make improvements to the antidumping and countervailing duty laws. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 21, 2015 

Mr. BOST (for himself, Mr. RODNEY DAVIS of Illinois, Mr. CRAWFORD, Mr. 

MURPHY of Pennsylvania, Mr. VISCLOSKY, Ms. SEWELL of Alabama, Mr. 

ROTHFUS, Mr. ROKITA, Mr. RYAN of Ohio, Mr. GIBBS, Mr. SHIMKUS, 

Mr. JOHNSON of Ohio, Mr. NOLAN, Ms. KAPTUR, Mr. RENACCI, Mr. 

ROUZER, Mr. BYRNE, Mr. FLORES, Mr. BARLETTA, Mr. HUDSON, Mr. 

GENE GREEN of Texas, Mr. PITTENGER, and Mr. KELLY of Pennsylvania) introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL 

To make improvements to the antidumping and 

countervailing duty laws. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘American Trade En5 forcement Effectiveness Act’’. 


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1 SEC. 2. CONSEQUENCES OF FAILURE TO COOPERATE WITH 

2 A REQUEST FOR INFORMATION IN A PRO3 CEEDING. 

4 Section 776 of the Tariff Act of 1930 (19 U.S.C. 

5 1677e) is amended— 

6 (1) in subsection (b)— 

7 (A) by redesignating paragraphs (1) 

8 through (4) as subparagraphs (A) through (D), 

9 respectively, and by moving such subpara10 graphs, as so redesignated, 2 ems to the right; 

11 (B) by striking ‘‘ADVERSE INFERENCES.— 

12 If’’ and inserting the following: ‘‘ADVERSE IN13 FERENCES.— 

14 ‘‘(1) IN GENERAL.—If’’; 

15 (C) by striking ‘‘under this title, may use’’ 

16 and inserting the following: ‘‘under this title— 

17 ‘‘(A) may use’’; and 

18 (D) by striking ‘‘facts otherwise available. 

19 Such adverse inference may include’’ and in20 serting the following: ‘‘facts otherwise available; 

21 and 

22 ‘‘(B) is not required to determine, or make 

23 any adjustments to, a countervailable subsidy 

24 rate or weighted average dumping margin based 

25 on any assumptions about information the in26 terested party would have provided if the interVerDate Sep 11 2014 04:41 May 28, 2015 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2523.IH H2523

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1 ested party had complied with the request for 

2 information. 

3 ‘‘(2) POTENTIAL SOURCES OF INFORMATION

4 FOR ADVERSE INFERENCES.—An adverse inference 

5 under paragraph (1)(A) may include’’; 

6 (2) in subsection (c)— 

7 (A) by striking ‘‘CORROBORATION OF SEC8 ONDARY INFORMATION.—When the’’ and in9 serting the following: ‘‘CORROBORATION OF

10 SECONDARY INFORMATION.— 

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graph (2), when the’’; and 

13 (B) by adding at the end the following: 

14 ‘‘(2) EXCEPTION.—The administrative author15 ity and the Commission shall not be required to cor16 roborate any dumping margin or countervailing duty 

17 applied in a separate segment of the same pro18 ceeding.’’; and 

19 (3) by adding at the end the following: 

20 ‘‘(d) SUBSIDY RATES AND DUMPING MARGINS IN

21 ADVERSE INFERENCE DETERMINATIONS.— 

22 ‘‘(1) IN GENERAL.—If the administering au23 thority uses an inference that is adverse to the inter24 ests of a party under subsection (b)(1)(A) in selectVerDate Sep 11 2014 04:41 May 28, 2015 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2523.IH H2523

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1 ing among the facts otherwise available, the admin2 istering authority may— 

3 ‘‘(A) in the case of a countervailing duty 

4 proceeding— 

5 ‘‘(i) use a countervailable subsidy rate 

6 applied for the same or similar program in 

7 a countervailing duty proceeding involving 

8 the same country, or 

9 ‘‘(ii) if there is no same or similar 

10 program, use a countervailable subsidy 

11 rate for a subsidy program from a pro12 ceeding that the administering authority 

13 considers reasonable to use, and 

14 ‘‘(B) in the case of an antidumping duty 

15 proceeding, use any dumping margin from any 

16 segment of the proceeding under the applicable 

17 antidumping order. 

18 ‘‘(2) DISCRETION TO APPLY HIGHEST RATE.— 

19 In carrying out paragraph (1), the administering au20 thority may apply any of the countervailable subsidy 

21 rates or dumping margins specified under that para22 graph, including the highest such rate or margin, 

23 based on the evaluation by the administering author24 ity of the situation that resulted in the adminVerDate Sep 11 2014 04:41 May 28, 2015 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2523.IH H2523

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1 istering authority using an adverse inference in se2 lecting among the facts otherwise available. 

3 ‘‘(3) NO OBLIGATION TO MAKE CERTAIN ESTI4 MATES OR ADDRESS CERTAIN CLAIMS.—If the ad5 ministering authority uses an adverse inference 

6 under subsection (b)(1)(A) in selecting among the 

7 facts otherwise available, the administering authority 

8 is not required, for purposes of subsection (c) or for 

9 any other purpose— 

10 ‘‘(A) to estimate what the countervailable 

11 subsidy rate or dumping margin would have 

12 been if the interested party found to have failed 

13 to cooperate under subsection (b)(1) had co14 operated, or 

15 ‘‘(B) to demonstrate that the countervaila16 ble subsidy rate or dumping margin used by the 

17 administering authority reflects an alleged com18 mercial reality of the interested party.’’. 

19 SEC. 3. DEFINITION OF MATERIAL INJURY. 

20 (a) EFFECT OF PROFITABILITY OF DOMESTIC IN21 DUSTRIES.—Section 771(7) of the Tariff Act of 1930 (19 

22 U.S.C. 1677(7)) is amended by adding at the end the fol23 lowing: 

24 ‘‘(J) EFFECT OF PROFITABILITY.—The 

25 Commission shall not determine that there is no 


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1 material injury or threat of material injury to 

2 an industry in the United States merely be3 cause that industry is profitable or because the 

4 performance of that industry has recently im5 proved.’’. 

6 (b) EVALUATION OF IMPACT ON DOMESTIC INDUS7 TRY IN DETERMINATION OF MATERIAL INJURY.—Sub8 clause (I) of section 771(7)(C)(iii) of the Tariff Act of 

9 1930 (19 U.S.C. 1677(7)(C)(iii)) is amended to read as 

10 follows: 

11 ‘‘(I) actual and potential decline 

12 in output, sales, market share, gross 

13 profits, operating profits, net profits, 

14 ability to service debt, productivity, 

15 return on investments, return on as16 sets, and utilization of capacity,’’. 

17 (c) CAPTIVE PRODUCTION.—Section 771(7)(C)(iv) of 

18 the Tariff Act of 1930 (19 U.S.C. 1677(7)(C)(iv)) is 

19 amended— 

20 (1) in subclause (I), by striking the comma and 

21 inserting ‘‘, and’’; 

22 (2) in subclause (II), by striking ‘‘, and’’ and 

23 inserting a comma; and 

24 (3) by striking subclause (III). 


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1 SEC. 4. PARTICULAR MARKET SITUATION. 

2 (a) DEFINITION OF ORDINARY COURSE OF TRADE.— 

3 Section 771(15) of the Tariff Act of 1930 (19 U.S.C. 

4 1677(15)) is amended by adding at the end the following: 

5 ‘‘(C) Situations in which the administering 

6 authority determines that the particular market 

7 situation prevents a proper comparison with the 

8 export price or constructed export price.’’. 

9 (b) DEFINITION OF NORMAL VALUE.—Section 

10 773(a)(1)(B)(ii)(III) of the Tariff Act of 1930 (19 U.S.C. 

11 1677b(a)(1)(B)(ii)(III)) is amended by striking ‘‘in such 

12 other country.’’. 

13 (c) DEFINITION OF CONSTRUCTED VALUE.—Section 

14 773(e) of the Tariff Act of 1930 (19 U.S.C. 1677b(e)) 

15 is amended— 

16 (1) in paragraph (1), by striking ‘‘business’’ 

17 and inserting ‘‘trade’’; and 

18 (2) by striking the flush text at the end and in19 serting the following: 

20 ‘‘For purposes of paragraph (1), if a particular market 

21 situation exists such that the cost of materials and fab22 rication or other processing of any kind does not accu23 rately reflect the cost of production in the ordinary course 

24 of trade, the administering authority may use another cal25 culation methodology under this subtitle or any other cal26 culation methodology. For purposes of paragraph (1), the 


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1 cost of materials shall be determined without regard to 

2 any internal tax in the exporting country imposed on such 

3 materials or their disposition that is remitted or refunded 

4 upon exportation of the subject merchandise produced 

5 from such materials.’’. 

6 SEC. 5. DISTORTION OF PRICES OR COSTS. 

7 (a) INVESTIGATION OF BELOW-COST SALES.—Sec8 tion 773(b)(2) of the Tariff Act of 1930 (19 U.S.C. 

9 1677b(b)(2)) is amended by striking subparagraph (A) 

10 and inserting the following: 

11 ‘‘(A) REASONABLE GROUNDS TO BELIEVE

12 OR SUSPECT.— 

13 ‘‘(i) REVIEW.—In a review conducted 

14 under section 751 involving a specific ex15 porter, there are reasonable grounds to be16 lieve or suspect that sales of the foreign 

17 like product have been made at prices that 

18 are less than the cost of production of the 

19 product if the administering authority dis20 regarded some or all of the exporter’s sales 

21 pursuant to paragraph (1) in the investiga22 tion or, if a review has been completed, in 

23 the most recently completed review. 

24 ‘‘(ii) REQUESTS FOR INFORMATION.— 

25 In an investigation initiated under section 


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1 732 or a review conducted under section 

2 751, the administering authority shall re3 quest information necessary to calculate 

4 the constructed value and cost of produc5 tion under subsections (e) and (f) to deter6 mine whether there are reasonable grounds 

7 to believe or suspect that sales of the for8 eign like product have been made at prices 

9 that represent less than the cost of produc10 tion of the product.’’. 

11 (b) PRICES AND COSTS IN NONMARKET ECONO12 MIES.—Section 773(c) of the Tariff Act of 1930 (19 

13 U.S.C. 1677b(c)) is amended by adding at the end the 

14 following: 

15 ‘‘(5) DISCRETION TO DISREGARD CERTAIN

16 PRICE OR COST VALUES.—In valuing the factors of 

17 production under paragraph (1) for the subject mer18 chandise, the administering authority may disregard 

19 price or cost values without further investigation if 

20 the administering authority has determined that 

21 broadly available export subsidies existed or par22 ticular instances of subsidization occurred with re23 spect to those price or cost values or if those price 

24 or cost values were subject to an antidumping 

25 order.’’. 


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1 SEC. 6. REDUCTION IN BURDEN ON DEPARTMENT OF COM2 MERCE BY REDUCING THE NUMBER OF VOL3 UNTARY RESPONDENTS. 

4 Section 782(a) of the Tariff Act of 1930 (19 U.S.C. 

5 1677m(a)) is amended— 

6 (1) in paragraph (1), by redesignating subpara7 graphs (A) and (B) as clauses (i) and (ii), respec8 tively, and by moving such clauses, as so redesig9 nated, 2 ems to the right; 

10 (2) by redesignating paragraphs (1) and (2) as 

11 subparagraphs (A) and (B), respectively, and by 

12 moving such subparagraphs, as so redesignated, 2 

13 ems to the right; 

14 (3) by striking ‘‘INVESTIGATIONS AND RE15 VIEWS.—In’’ and inserting the following: ‘‘INVES16 TIGATIONS AND REVIEWS.— 

17 ‘‘(1) IN GENERAL.—In’’; 

18 (4) in paragraph (1), as designated by para19 graph (3), by amending subparagraph (B), as redes20 ignated by paragraph (2), to read as follows: 

21 ‘‘(B) the number of exporters or producers 

22 subject to the investigation or review is not so 

23 large that any additional individual examination 

24 of such exporters or producers would be unduly 

25 burdensome to the administering authority and 


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1 inhibit the timely completion of the investiga2 tion or review.’’; and 

3 (5) by adding at the end the following: 

4 ‘‘(2) DETERMINATION OF UNDULY BURDEN5 SOME.—In determining if an individual examination 

6 under paragraph (1)(B) would be unduly burden7 some, the administering authority may consider the 

8 following: 

9 ‘‘(A) The complexity of the issues or infor10 mation presented in the proceeding, including 

11 questionnaires and any responses thereto. 

12 ‘‘(B) Any prior experience of the admin13 istering authority in the same or similar pro14 ceeding. 

15 ‘‘(C) The total number of investigations 

16 under subtitle A or B and reviews under section 

17 751 being conducted by the administering au18 thority as of the date of the determination. 

19 ‘‘(D) Such other factors relating to the 

20 timely completion of each such investigation 

21 and review as the administering authority con22 siders appropriate.’’. 

23 SEC. 7. APPLICATION TO CANADA AND MEXICO. 

24 Pursuant to article 1902 of the North American Free 

25 Trade Agreement and section 408 of the North American 


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1 Free Trade Agreement Implementation Act (19 U.S.C. 

2 3438), the amendments made by this Act shall apply with 

3 respect to goods from Canada and Mexico. 

Æ 


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