I 

110TH CONGRESS 

1ST SESSION H. R. 1229 

To amend title VII of the Tariff Act of 1930 to provide that the provisions 

relating to countervailing duties apply to nonmarket economy countries, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 28, 2007 

Mr. DAVIS of Alabama (for himself and Mr. ENGLISH of Pennsylvania) introduced the following bill; which was referred to the Committee on Ways 

and Means, and in addition to the Committee on Rules, for a period to 

be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To amend title VII of the Tariff Act of 1930 to provide 

that the provisions relating to countervailing duties apply 

to nonmarket economy countries, 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 ‘‘Nonmarket Economy 

5 Trade Remedy Act of 2007’’. 

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1 SEC. 2. APPLICATION OF COUNTERVAILING DUTIES TO 

2 NONMARKET ECONOMIES AND STRENGTH3 ENING APPLICATION OF THE LAW. 

4 (a) IN GENERAL.—Section 701(a)(1) of the Tariff 

5 Act of 1930 (19 U.S.C. 1671(a)(1)) is amended by insert6 ing ‘‘(including a nonmarket economy country)’’ after 

7 ‘‘country’’ each place it appears. 

8 (b) USE OF ALTERNATE METHODOLOGIES INVOLV9 ING CHINA.—Section 771(5)(E) of the Tariff Act of 1930 

10 (19 U.S.C. 1677(5)(E)) is amended by adding at the end 

11 the following: ‘‘If the administering authority encounters 

12 special difficulties in identifying and calculating the 

13 amount of a benefit under clauses (i) through (iv) with 

14 respect to an investigation or review involving the People’s 

15 Republic of China, irrespective of whether the admin16 istering authority determines that China is a nonmarket 

17 economy country under paragraph (18) of this section, the 

18 administering authority shall use methodologies to identify 

19 and calculate the amount of the benefit that take into ac20 count the possibility that terms and conditions prevailing 

21 in China may not always be available as appropriate 

22 benchmarks. In applying such methodologies, where prac23 ticable, the administering authority should take into ac24 count and adjust terms and conditions prevailing in China 

25 before using terms and conditions prevailing outside of 

26 China. When the administering authority has determined 

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1 that China is a nonmarket economy country under para2 graph (18) of this section, the administering authority 

3 shall presume that special difficulties exist in calculating 

4 the amount of a benefit under clauses (i) through (iv) with 

5 respect to an investigation or review involving China and 

6 that it is not practicable to take into account and adjust 

7 terms and conditions prevailing in China, and the admin8 istering authority shall use terms and conditions pre9 vailing outside of China.’’. 

10 (c) EFFECTIVE DATE.—The amendments made by 

11 subsections (a) and (b) apply to petitions filed under sec12 tion 702 of the Tariff Act of 1930 (19 U.S.C. 1671a) on 

13 or after October 1, 2006. 

14 (d) ANTIDUMPING PROVISIONS NOT AFFECTED.— 

15 The amendments made by subsections (a) and (b) shall 

16 not affect the status of a country as a nonmarket economy 

17 country for the purposes of any matter relating to anti18 dumping duties under subtitle B of title VII of the Tariff 

19 Act of 1930 (19 U.S.C. 1673 et seq.). 

20 (e) RULE OF CONSTRUCTION.—The amendments 

21 made by subsections (a) and (b) shall not be construed 

22 to affect the interpretation of any provision of law as in 

23 effect on the day before the date of the enactment of this 

24 Act with respect to the application of countervailing duties 

25 to nonmarket economy countries. 

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1 SEC. 3. REVOCATION OF NONMARKET ECONOMY COUNTRY 

2 STATUS. 

3 (a) AMENDMENT OF DEFINITION OF ‘‘NONMARKET

4 ECONOMY COUNTRY’’.—Section 771(18)(C)(i) of the Tar5 iff Act of 1930 (19 U.S.C. 1677(18)(C)(i)) is amended 

6 to read as follows: 

7 ‘‘(i) Any determination that a foreign 

8 country is a nonmarket economy country 

9 shall remain in effect until— 

10 ‘‘(I) the administering authority 

11 makes a final determination to revoke 

12 the determination under subparagraph 

13 (A); and 

14 ‘‘(II) a joint resolution is enacted 

15 into law pursuant to section 3 of the 

16 Nonmarket Economy Trade Remedy 

17 Act of 2007.’’. 

18 (b) NOTIFICATION BY PRESIDENT; JOINT RESOLU19 TION.—Whenever the administering authority makes a 

20 final determination under section 771(18)(C)(i)(I) of the 

21 Tariff Act of 1930 (19 U.S.C. 1677(18)(C)(i)(I)) to re22 voke the determination that a foreign country is a non23 market economy country— 

24 (1) the President shall notify the Committee on 

25 Finance of the Senate and the Committee on Ways 

26 and Means of the House of Representatives of that 

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1 determination not later than 10 days after the publi2 cation of the administering authority’s final deter3 mination in the Federal Register; 

4 (2) the President shall transmit to the Congress 

5 a request that a joint resolution be introduced pur6 suant to this section; and 

7 (3) a joint resolution shall be introduced in the 

8 Congress pursuant to this section. 

9 (c) DEFINITION.—For purposes of this section, the 

10 term ‘‘joint resolution’’ means only a joint resolution of 

11 the 2 Houses of the Congress, the matter after the resolv12 ing clause of which is as follows: ‘‘That the Congress ap13 proves the change of nonmarket economy status with re14 spect to the products of lllll transmitted by the 

15 President to the Congress on lllll.’’, the first 

16 blank space being filled in with the name of the country 

17 with respect to which a determination has been made 

18 under section 771(18)(C)(i) of the Tariff Act of 1930 (19 

19 U.S.C. 1677(18)(C)(i)), and the second blank space being 

20 filled with the date on which the President notified the 

21 Committee on Finance of the Senate and the Committee 

22 on Ways and Means of the House of Representatives 

23 under subsection (b)(1). 

24 (d) INTRODUCTION.—A joint resolution shall be in25 troduced (by request) in the House of Representatives by 

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1 the majority leader of the House, for himself, or by Mem2 bers of the House designated by the majority leader of 

3 the House, and shall be introduced (by request) in the 

4 Senate by the majority leader of the Senate, for himself, 

5 or by Members of the Senate designated by the majority 

6 leader of the Senate. 

7 (e) AMENDMENTS PROHIBITED.—No amendment to 

8 a joint resolution shall be in order in either the House 

9 of Representatives or the Senate, and no motion to sus10 pend the application of this subsection shall be in order 

11 in either House, nor shall it be in order in either House 

12 for the presiding officer to entertain a request to suspend 

13 the application of this subsection by unanimous consent. 

14 (f) PERIOD FOR COMMITTEE AND FLOOR CONSIDER15 ATION.— 

16 (1) IN GENERAL.—If the committee or commit17 tees of either House to which a joint resolution has 

18 been referred have not reported the joint resolution 

19 at the close of the 45th day after its introduction, 

20 such committee or committees shall be automatically 

21 discharged from further consideration of the joint 

22 resolution and it shall be placed on the appropriate 

23 calendar. A vote on final passage of the joint resolu24 tion shall be taken in each House on or before the 

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1 ported by the committee or committees of that 

2 House to which it was referred, or after such com3 mittee or committees have been discharged from fur4 ther consideration of the joint resolution. If, prior to 

5 the passage by one House of a joint resolution of 

6 that House, that House receives the same joint reso7 lution from the other House, then— 

8 (A) the procedure in that House shall be 

9 the same as if no joint resolution had been re10 ceived from the other House, but 

11 (B) the vote on final passage shall be on 

12 the joint resolution of the other House. 

13 (2) COMPUTATION OF DAYS.—For purposes of 

14 paragraph (1), in computing a number of days in ei15 ther House, there shall be excluded any day on 

16 which that House is not in session. 

17 (g) FLOOR CONSIDERATION IN THE HOUSE.— 

18 (1) MOTION PRIVILEGED.—A motion in the 

19 House of Representatives to proceed to the consider20 ation of a joint resolution shall be highly privileged 

21 and not debatable. An amendment to the motion 

22 shall not be in order, nor shall it be in order to move 

23 to reconsider the vote by which the motion is agreed 

24 to or disagreed to. 

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1 (2) DEBATE LIMITED.—Debate in the House of 

2 Representatives on a joint resolution shall be limited 

3 to not more than 20 hours, which shall be divided 

4 equally between those favoring and those opposing 

5 the joint resolution. A motion further to limit debate 

6 shall not be debatable. It shall not be in order to 

7 move to recommit a joint resolution or to move to 

8 reconsider the vote by which a joint resolution is 

9 agreed to or disagreed to. 

10 (3) MOTIONS TO POSTPONE.—Motions to post11 pone, made in the House of Representatives with re12 spect to the consideration of a joint resolution, and 

13 motions to proceed to the consideration of other 

14 business, shall be decided without debate. 

15 (4) APPEALS.—All appeals from the decisions 

16 of the Chair relating to the application of the Rules 

17 of the House of Representatives to the procedure re18 lating to a joint resolution shall be decided without 

19 debate. 

20 (5) OTHER RULES.—Except to the extent spe21 cifically provided in the preceding provisions of this 

22 subsection, consideration of a joint resolution shall 

23 be governed by the Rules of the House of Represent24 atives applicable to other bills and resolutions in 

25 similar circumstances. 

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1 (h) FLOOR CONSIDERATION IN THE SENATE.— 

2 (1) MOTION PRIVILEGED.—A motion in the 

3 Senate to proceed to the consideration of a joint res4 olution shall be privileged and not debatable. An 

5 amendment to the motion shall not be in order, nor 

6 shall it be in order to move to reconsider the vote 

7 by which the motion is agreed to or disagreed to. 

8 (2) DEBATE LIMITED.—Debate in the Senate 

9 on a joint resolution, and all debatable motions and 

10 appeals in connection therewith, shall be limited to 

11 not more than 20 hours. The time shall be equally 

12 divided between, and controlled by, the majority 

13 leader and the minority leader or their designees. 

14 (3) CONTROL OF DEBATE.—Debate in the Sen15 ate on any debatable motion or appeal in connection 

16 with a joint resolution shall be limited to not more 

17 than 1 hour, to be equally divided between, and con18 trolled by, the mover and the manager of the joint 

19 resolution, except that in the event the manager of 

20 the joint resolution is in favor of any such motion 

21 or appeal, the time in opposition thereto shall be 

22 controlled by the minority leader or his designee. 

23 Such leaders, or either of them, may, from time 

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1 tion, allot additional time to any Senator during the 

2 consideration of any debatable motion or appeal. 

3 (4) OTHER MOTIONS.—A motion in the Senate 

4 to further limit debate is not debatable. A motion to 

5 recommit a joint resolution is not in order. 

6 (i) RULES OF HOUSE OF REPRESENTATIVES AND

7 SENATE.—Subsections (c) through (h) are enacted by the 

8 Congress— 

9 (1) as an exercise of the rulemaking power of 

10 the House of Representatives and the Senate, re11 spectively, and as such subsections (c) through (h) 

12 are deemed a part of the rules of each House, re13 spectively, but applicable only with respect to the 

14 procedure to be followed in that House in the case 

15 of joint resolutions described in subsection (c), and 

16 subsections (c) through (h) supersede other rules 

17 only to the extent that they are inconsistent there18 with; and 

19 (2) with full recognition of the constitutional 

20 right of either House to change the rules (so far as 

21 relating to the procedure of that House) at any time, 

22 in the same manner and to the same extent as in 

23 the case of any other rule of that House. 

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1 SEC. 4. STUDY AND REPORT ON SUBSIDIES BY PEOPLE’S 

2 REPUBLIC OF CHINA. 

3 (a) STUDY.—The United States International Trade 

4 Commission shall conduct a study, under section 332 of 

5 the Tariff Act of 1930 (19 U.S.C. 1332), regarding how 

6 the People’s Republic of China uses government interven7 tion to promote investment, employment, and exports. The 

8 study shall comprehensively catalog, and when possible 

9 quantify, the practices and policies that central, provincial, 

10 and local government bodies in the People’s Republic of 

11 China use to support and to attempt to influence decision12 making in China’s manufacturing enterprises and indus13 tries. Chapters of this study shall include, but not be lim14 ited to, the following: 

15 (1) Privatization and private ownership. 

16 (2) Nonperforming loans. 

17 (3) Price coordination. 

18 (4) Selection of industries for targeted assist19 ance. 

20 (5) Banking and finance. 

21 (6) Utility rates. 

22 (7) Infrastructure development. 

23 (8) Taxation. 

24 (9) Restraints on imports and exports. 

25 (10) Research and development. 

26 (11) Worker training and retraining. 

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1 (12) Rationalization and closure of uneconomic 

2 enterprises. 

3 (b) REPORT.—The Congress requests that— 

4 (1) not later than 9 months after the date of 

5 the enactment of this Act, the International Trade 

6 Commission complete its study under subsection (a), 

7 submit a report on the study to the Committee on 

8 Ways and Means of the House of Representatives 

9 and the Committee on Finance of the Senate, and 

10 make the report available to the public; and 

11 (2) not later than 1 year after the report under 

12 paragraph (1) is submitted, and annually thereafter 

13 through 2017, the International Trade Commission 

14 prepare and submit to the committees referred to in 

15 paragraph (1) an update of the report and make the 

16 update of the report available to the public. 

Æ 

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