I 

117TH CONGRESS 

1ST SESSION H. R. 6309 

To establish a United States strategy to counter threats to supply chains 

for critical goods, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 16, 2021 

Mr. KINZINGER introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To establish a United States strategy to counter threats 

to supply chains for critical goods, and for other purposes. 

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 ‘‘Trade Encourages Al5 lied Manufacturing and Security Act’’ or the ‘‘TEAMS 

6 Act’’. 

7 SEC. 2. SENSE OF CONGRESS. 

8 It is the sense of Congress that— 

9 (1) resilient supply chains are paramount to our 

10 national security and economic security; 


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1 (2) a coordinated and whole-of-Government ap2 proach to safeguarding supply chains will benefit all 

3 Americans and ensure disruptions are avoided or 

4 mitigated; and 

5 (3) the United States Trade Representative, in 

6 coordination with other appropriate interagency 

7 stakeholders, should incentivize the manufacturing 

8 of critical goods to increase manufacturing capacity 

9 of the United States, and of an ally or key inter10 national partner country, including by seeking new 

11 and revised trade agreements. 

12 SEC. 3. UNITED STATES STRATEGY TO COUNTER THREATS 

13 TO SUPPLY CHAINS FOR CRITICAL GOODS. 

14 (a) IN GENERAL.—In accordance with Executive 

15 Order 14017 (86 Fed. Reg. 11849; relating to America’s 

16 supply chains), the United States Trade Representative, 

17 not later than 1 year after enactment of this Act, shall 

18 develop and implement a strategy taking a government19 wide approach to support the resilience, diversity, security, 

20 and strength of supply chains. 

21 (b) ELEMENTS.—The strategy required by subsection 

22 (a) shall include a plan to do the following: 

23 (1) Support a unified national effort to reduce 

24 reliance on concentrated supply chains and protect 


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1 against threats from countries of concern relating to 

2 supply chains. 

3 (2) Support sufficient access to critical goods 

4 by mitigating supply chain vulnerabilities, including 

5 supply chains concentrated in countries of concern. 

6 (3) Collaborate with other relevant Federal 

7 agencies to assist allies or key international partners 

8 build capacity for manufacturing critical goods. 

9 (4) Incentivize through trade preferences, and 

10 identify tax incentives, loans and loan guarantees, 

11 equity investment, and other means, as appro12 priate— 

13 (A) for domestic manufacturers that man14 ufacture critical goods to— 

15 (i) relocate manufacturing facilities, 

16 industrial equipment, or operations related 

17 to the production of critical goods from 

18 countries of concern to the United States 

19 or to other allies or key international part20 ners; and 

21 (ii) support manufacturing facilities, 

22 industrial equipment, or operations to in23 crease the production of critical goods and 

24 meet demand for such goods; and 


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1 (B) for domestic manufacturers that do 

2 not manufacture critical goods to make nec3 essary or appropriate modifications to existing 

4 manufacturing facilities, industrial equipment, 

5 manufacturing technology or operations in 

6 order to manufacture 1 or more critical good. 

7 (5) Strengthen and increase trade and other 

8 forms of engagement between the United States and 

9 allies or key international partners in order to miti10 gate— 

11 (A) supply chain vulnerabilities; and 

12 (B) the effects of supply chain shocks. 

13 (6) Identify, in coordination with other relevant 

14 Federal agencies, actions relating to supply chains 

15 with which the United States might— 

16 (A) raise living standards; 

17 (B) increase employment opportunities; 

18 (C) address the underlying causes of irreg19 ular migration; and 

20 (D) improve critical industry supply chain 

21 response to supply chain shocks. 

22 (7) Protect against supply chain shocks from 

23 countries of concern relating to supply chains. 

24 (8) Provide recommendations to effectuate the 

25 strategy under this section. 


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1 (c) SUBMISSION OF STRATEGY.— 

2 (1) IN GENERAL.—Not later than 450 days 

3 after the date of the enactment of this Act, the 

4 United States Trade Representative shall submit to 

5 the Committee on Ways and Means of the House of 

6 Representatives and the Committee on Finance of 

7 the Senate, and publish on the website of the Office 

8 of the United States Trade Representative, a report 

9 containing the strategy developed under this section. 

10 (2) UPDATE.—Not less than once every 4 years 

11 after the date on which the strategy is submitted 

12 under paragraph (1), the United States Trade Rep13 resentative shall submit to Congress an update to 

14 such strategy. 

15 (3) FORM.—The report submitted under para16 graph (1), and any update submitted under para17 graph (2), shall be submitted in unclassified form 

18 and may include a classified annex. 

19 SEC. 4. ALLIES TRADE PREFERENCE PROGRAM. 

20 (a) AUTHORITY TO PROVIDE DUTY-FREE TREAT21 MENT.—Notwithstanding any other provision of law and 

22 subject to subsection (b), the President, acting through 

23 the United States Trade Representative, is authorized to 

24 provide duty-free treatment for any eligible article from 


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1 any ally or key international partner in accordance with 

2 the provisions of this section. 

3 (b) DESIGNATION OF BENEFICIARY COUNTRIES.— 

4 (1) AUTHORITY TO DESIGNATE.—The United 

5 States Trade Representative shall engage in an 

6 interagency process by which to designate an ally or 

7 key international partner described in section 7 of 

8 this Act as a beneficiary country for purposes of this 

9 section. 

10 (2) COUNTRIES INELIGIBLE FOR DESIGNA11 TION.—The United States Trade Representative 

12 may not designate a country as a beneficiary coun13 try under this section if such country— 

14 (A) does not have a democratically elected 

15 government or a market economy; 

16 (B) has nationalized, expropriated, or oth17 erwise seized ownership or control of property 

18 owned by a United States citizen or by a cor19 poration, partnership, or association that is 50 

20 percent or more beneficially owned by United 

21 States citizens; 

22 (C) affords preferential treatment to the 

23 products of a developed country, other than the 

24 United States, which has, or is likely to have, 


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1 a significant adverse effect on United States 

2 commerce, unless— 

3 (i) the United States Trade Rep4 resentative receives satisfactory assurances 

5 that such preferential treatment will be 

6 eliminated or that action will be taken to 

7 assure that there will be no such signifi8 cant adverse effect; and 

9 (ii) the United States Trade Rep10 resentative reports such assurances to Con11 gress; 

12 (D) is not a signatory to a treaty, conven13 tion, protocol, or other agreement regarding the 

14 extradition of United States citizens; 

15 (E) does not afford and enforce in law and 

16 practice internationally recognized worker 

17 rights for workers in the country; or 

18 (F) is a country of concern. 

19 (c) ELIGIBLE ARTICLES.— 

20 (1) IN GENERAL.—Subject to paragraphs (2) 

21 and (3), the duty-free treatment provided under this 

22 section shall apply to any critical good that is the 

23 growth, product, or manufacture of a beneficiary 

24 country. 


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1 (2) RULES OF ORIGIN.—The duty-free treat2 ment provided under this section shall apply to any 

3 eligible article that is the growth, product, or manu4 facture of a beneficiary country if— 

5 (A) such article is imported directly from 

6 such country into the customs territory of the 

7 United States; and 

8 (B) the sum of— 

9 (i) the cost or value of the materials 

10 produced in the beneficiary country or any 

11 two or more such countries that are mem12 bers of the same association of countries, 

13 plus 

14 (ii) the direct costs of processing oper15 ations performed in such beneficiary coun16 try or such member countries, 

17 is not less than 35 percent of the appraised 

18 value of such article at the time it is entered. 

19 (3) INELIGIBLE ARTICLES.—An article may not 

20 be treated as the growth, product, or manufacture of 

21 a beneficiary country by virtue of having merely un22 dergone— 

23 (A) simple combining or packaging oper24 ations; or 


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1 (B) mere dilution with water or another 

2 substance that does not materially alter the 

3 characteristics of the article. 

4 (d) DEFINITIONS.—In this section, the terms ‘‘en5 tered’’ and ‘‘internationally recognized worker rights’’ 

6 have the meanings given such terms in section 507 of the 

7 Trade Act of 1974 (19 U.S.C. 2467). 

8 (e) TERMINATION.—No duty-free treatment provided 

9 under this section shall remain in effect after September 

10 30, 2030. 

11 SEC. 5. TEMPORARY INCREASED EXPENSING FOR RELO12 CATING MANUFACTURING TO ALLY OR KEY 

13 INTERNATIONAL PARTNER COUNTRIES. 

14 (a) IN GENERAL.—For purposes of section 168(k) of 

15 the Internal Revenue Code of 1986, in the case of any 

16 qualified United States manufacturing property which is 

17 placed in service after December 31, 2020, and before 

18 January 1, 2026— 

19 (1) such property shall be treated as qualified 

20 property (within the meaning of such section), 

21 (2) the applicable percentage otherwise deter22 mined under section 168(k)(6) of such Code with re23 spect to such property shall be— 

24 (A) if placed in the United States, 100 

25 percent, and 


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1 (B) if placed within an ally or key inter2 national partner country, 60 percent, and 

3 (3) paragraph (8) of such section shall not 

4 apply. 

5 (b) QUALIFIED UNITED STATES MANUFACTURING

6 PROPERTY DEFINED.—In this section the term ‘‘qualified 

7 United States manufacturing property’’ means a domestic 

8 corporation that is engaged in the business of manufac9 turing critical goods with property outside an ally or key 

10 international partner country that places in service tan11 gible property within an ally or key international partner 

12 country. 

13 (c) TERMINATION.—This section shall not apply to 

14 any property placed in service after December 31, 2025. 

15 SEC. 6. AMERICAN SECURITY PRODUCT TAX CREDIT. 

16 (a) IN GENERAL.—Subpart D of part IV of sub17 chapter A of chapter 1 of the Internal Revenue Code of 

18 1986 is amended by adding at the end the following new 

19 section: 

20 ‘‘SEC. 45U. AMERICAN SECURITY PRODUCT TAX CREDIT. 

21 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

22 American security product tax credit for any taxable year 

23 is an amount equal to— 


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1 ‘‘(1) 30 percent of the qualified costs of Amer2 ican security products manufactured in the United 

3 States, or 

4 ‘‘(2) 15 percent of the qualified costs of Amer5 ican security products manufactured in an ally or 

6 key international partner country. 

7 ‘‘(b) MAXIMUM CREDIT.—The aggregate credit de8 termined under subsection (a) for any taxable year with 

9 respect to any taxpayer shall not exceed the excess (if any) 

10 of the taxpayer’s net income tax over the greater of— 

11 ‘‘(1) the tentative minimum tax for the taxable 

12 year, or 

13 ‘‘(2) 25 percent of so much of the taxpayer’s 

14 net regular tax liability as exceeds $25,000. 

15 ‘‘(c) DEFINITIONS.—In this section: 

16 ‘‘(1) AMERICAN SECURITY PRODUCT.—The 

17 term ‘American security product’ means— 

18 ‘‘(A) a critical good as such term is de19 fined in section 7 of the Trade Encourages Al20 lied Manufacturing and Security Act; and 

21 ‘‘(B) at least 50 percent of the value of 

22 which shall be derived from components manu23 factured in the United States. 


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1 ‘‘(2) QUALIFIED COSTS.—The term ‘qualified 

2 costs’ means costs incurred in the production of an 

3 American security product. 

4 ‘‘(3) UNITED STATES.—The term ‘United 

5 States’ shall include the Commonwealth of Puerto 

6 Rico and the Commonwealth of the Northern Mar7 iana Islands.’’. 

8 (b) DENIAL OF DOUBLE BENEFIT.—Section 280C of 

9 such Code is amended by adding at the end the following 

10 new subsection: 

11 ‘‘(i) CREDIT FOR AMERICAN SECURITY

12 PRODUCTS.—No deduction shall be allowed 

13 for that portion of expenses otherwise al14 lowable as a deduction taken into account 

15 in determining the credit under section 

16 45U for the taxable’’. 

17 (c) CREDIT MADE PART OF GENERAL BUSINESS

18 CREDIT.—Section 38(b) of such Code is amended by strik19 ing ‘‘plus’’ at the end of paragraph (32), by striking the 

20 period at the end of paragraph (33) and inserting ‘‘, plus’’, 

21 and by adding at the end the following new paragraph: 

22 ‘‘(34) the American security product tax credit 

23 determined under section 45U.’’. 

24 (d) CLERICAL AMENDMENT.—The table of sections 

25 for subpart D of part IV of subchapter A of chapter 1 


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1 of such Code is amended by adding at the end the fol2 lowing new item: 

‘‘45U. American security product tax credit.’’. 

3 (e) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to expenses made or incurred be5 ginning on the first day of the first full calendar quarter 

6 after the date of enactment of this section. 

7 SEC. 7. DEFINITIONS. 

8 In this Act: 

9 (1) ALLY OR KEY INTERNATIONAL PARTNER.— 

10 (A) IN GENERAL.—The term ‘‘ally or key 

11 international partner’’ means a country des12 ignated by the Federal Government, after an 

13 appropriate interagency consultation has taken 

14 place among relevant Federal agencies, and— 

15 (i) is— 

16 (I) a member state of the North 

17 Atlantic Treaty Organization 

18 (NATO); 

19 (II) a country designated as a 

20 major non-NATO ally pursuant to 

21 section 517(a) of the Foreign Assist22 ance Act of 1961 (22 U.S.C. 

23 2321k(a)); or 

24 (III) a country that is located in 

25 the Western Hemisphere and included 


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1 on the list of countries described in 

2 subparagraph (B); and 

3 (ii) is not a country of concern. 

4 (B) LIST OF COUNTRIES DESCRIBED.— 

5 The list of countries described in subclause 

6 (A)(i)(III) are the following: Anguilla, Antigua 

7 and Barbuda, Argentina, Aruba, The Bahamas, 

8 Barbados, Belize, Bermuda, Bolivia, Brazil, 

9 The British Virgin Islands, Canada, Chile, Co10 lombia, Costa Rica, Dominica, Dominican Re11 public, Ecuador, El Salvador, Grenada, Guate12 mala, Guyana, Haiti, Honduras, Jamaica, Mex13 ico, Montserrat, Netherlands Antilles, Panama, 

14 Paraguay, Peru, Saint Kitts and Nevis, Saint 

15 Lucia, Saint Vincent and the Grenadines, 

16 Suriname, Trinidad and Tobago, Turks and 

17 Caicos Islands, Uruguay, and the sovereign gov18 ernment recognized by the United States in 

19 Venezuela. 

20 (2) CONCENTRATED.—With respect to a supply 

21 chain, the term ‘‘concentrated’’ means a supply 

22 chain that is— 

23 (A) under a level of control or influence by 

24 the government of a country of concern that 


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1 presents an unreasonable risk to national secu2 rity or economic security; and 

3 (B) subject to undue manipulation by the 

4 government of a country of concern. 

5 (3) COUNTRY OF CONCERN.—The term ‘‘coun6 try of concern’’ means a country in which a con7 centrated supply chain is located and— 

8 (A) that poses a significant national secu9 rity or economic security threat to the United 

10 States; and 

11 (B) whose government, or elements of such 

12 government, has proven, or has been credibly 

13 alleged to have, committed crimes against hu14 manity or genocide. 

15 (4) CRITICAL GOOD.— 

16 (A) IN GENERAL.—The term ‘‘critical 

17 good’’ means any raw, in process, or manufac18 tured material (including any mineral, metal, or 

19 advanced processed material), article, com20 modity, supply, product, or item of supply 

21 that— 

22 (i) the absence of which would have a 

23 significant effect on— 


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1 (I) the national security or eco2 nomic security of the United States; 

3 and 

4 (II) critical infrastructure; and 

5 (ii) is designated as a critical good in 

6 accordance with the requirements of sub7 paragraph (B). 

8 (B) DESIGNATION REQUIREMENTS.—Not 

9 later than 270 days after the date of the enact10 ment of this Act, the President shall— 

11 (i) designate critical goods for pur12 poses of this Act; 

13 (ii) provide for a period of public com14 ment and review in carrying out clause (i); 

15 and 

16 (iii) update the designations made 

17 under clause (i) not less frequently than 

18 once every four years. 

19 (5) CRITICAL INFRASTRUCTURE.—The term 

20 ‘‘critical infrastructure’’ has the meaning given to 

21 that term in the Critical Infrastructures Protection 

22 Act of 2001 (42 U.S.C. 5195c(e)). 

23 (6) MANUFACTURE.—The term ‘‘manufacture’’ 

24 means any activity that is necessary for or incidental 

25 to the development, production, processing, distribuVerDate Sep 11 2014 21:56 Dec 23, 2021 Jkt 029200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H6309.IH H6309

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1 tion, or delivery of any raw, in process, or manufac2 tured material (including minerals, metals, and ad3 vanced processed materials), article, commodity, sup4 ply, product, critical good, or item of supply. 

5 (7) SUPPLY CHAIN.—The term ‘‘supply chain’’ 

6 means a supply chain for a critical good. 

7 (8) SUPPLY CHAIN SHOCK.—The term ‘‘supply 

8 chain shock’’ includes the following: 

9 (A) A natural disaster or extreme weather 

10 event. 

11 (B) An accidental or human-caused event. 

12 (C) An economic disruption. 

13 (D) A pandemic. 

14 (E) A biological threat. 

15 (F) A cyberattack. 

16 (G) A great power conflict. 

17 (H) A terrorist or geopolitical attack. 

18 (I) A public health emergency declared by 

19 the Secretary of Health and Human Services 

20 pursuant to section 319 of the Public Health 

21 Service Act (42 U.S.C. 247d). 

22 (J) An event for which the President de23 clares a major disaster or an emergency under 

24 section 401 or 501, respectively, of the Robert 


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1 T. Stafford Disaster Relief and Emergency As2 sistance Act (42 U.S.C. 5170 and 5191). 

3 (K) A national emergency declared by the 

4 President under the National Emergencies Act 

5 (50 U.S.C. 1601 et seq.). 

6 (L) Any other supply chain disruption or 

7 threat that affects the national security or eco8 nomic security of the United States. 

Æ 


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