I

103D CONGRESS

1ST SESSION H. R. 2528

To provide equity and fairness to United States industries, and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 24, 1993

Mr. REGULA (for himself, Mr. MURTHA, Mr. VISCLOSKY, and Mrs. BENTLEY)

introduced the following bill; which was referred jointly to the Committees

on Ways and Means and the Judiciary

A BILL

To provide equity and fairness to United States industries,

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; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Trade Equity and Fairness Act of 1993’’.

6 (b) TABLE OF CONTENTS.—

Sec. 1. Short Title; Table of Contents.

TITLE I—COUNTERVAILING AND ANTIDUMPING DUTY

AMENDMENTS

Sec. 101. Final payment of antidumping and countervailing duties.

Sec. 102. Administration review of determinations.

Sec. 103. Post-initiation events and relevance to material injury determination.

Sec. 104. Determination of material injury.
2

HR 2528 IH

Sec. 105. Publication of certain cash deposits and duties collected.

Sec. 106. Threat of injury standard.

Sec. 107. Actual and potential declines in material injury determination.

Sec. 108. Investigation of sales at less than cost of production.

Sec. 109. Cumulation.

Sec. 110. Dual pricing.

Sec. 111. Clarification of adjustment to foreign market value.

Sec. 112. Interest on post findings.

Sec. 113. Compensation awards.

Sec. 114. Diversionary input dumping.

Sec. 115. Upstream subsidies.

Sec. 116. Exportation from an intermediate country.

Sec. 117. Access to countervailing and antidumping duty collections data.

Sec. 118. Study for simplifying countervailing and antidumping duty actions.

Sec. 119. Special rule—relative United States content.

Sec. 120. Reimbursement of antidumping duties.

Sec. 121. Determination of United States price.

Sec. 122. Reliquidation of certain entries.

Sec. 123. Administrative reviews.

Sec. 124. Use of protective order information.

Sec. 125. Further manufactured goods.

Sec. 126. Use of constructed value.

Sec. 127. Patent equity and banned substances.

Sec. 128. Circumvention timelines and procedural requirements.

TITLE II—MARKET ACCESS PROVISIONS

Sec. 201. Access to Japanese market by motor vehicles and motor vehicle parts.

Sec. 202. Extension of ‘‘Super 301’’ authority.

TITLE III—INTERNATIONAL TRADE NEGOTIATIONS

Sec. 301. Principal trade negotiation objectives and dispute settlement.

Sec. 302. Global structural excess capacity.

Sec. 303. Application of amendments to Mexico and Canada.

Sec. 304. International trade agreements on antidumping and trade distorting

subsidies.

TITLE IV—OTHER MISCELLANEOUS AMENDMENTS

Sec. 401. Restraint of U.S. trade or commerce.

Sec. 402. Authority to impose tariffs on countries refusing costs of joint defense assistance.

Sec. 403. Amendment on section 337 of the Tariff Act of 1930.

Sec. 404. Amendment of title 28, United States Code.

Sec. 405. International protection of patent rights.

Sec. 406. Cooperative productivity.

Sec. 407. Unfair methods of competition.

Sec. 408. Correction of inverted tariff.

Sec. 409. Horticultural study.

Sec. 410. Home appliances.

TITLE V—PRIVATE RIGHT OF ACTION FOR RELIEF FROM

CERTAIN FORMS OF ANTICOMPETITIVE PRICING PRACTICES

Sec. 501. Private right of action for relief from injurious industrial cross-subsidization and persistent sales below full cost of production.
3

HR 2528 IH

TITLE VI—FOREIGN CAPITAL AND SECURITIES MARKETS

Sec. 601. Foreign capital and securities markets study.

1 TITLE I—COUNTERVAILING AND ANTIDUMPING

2 DUTY AMENDMENTS

3 SEC. 101. FINAL PAYMENT OF ANTIDUMPING AND COUN4 TERVAILING DUTIES.

5 (a) Section 736 of the Tariff Act of 1930 (19 U.S.C.

6 1673e) is amended by adding at the end thereof the fol7 lowing new subsection:

8 ‘‘(d) FINAL PAYMENT OF DUTY.—

9 ‘‘(1) ASSESSMENT AND COLLECTION RE10 QUIRED.—Pursuant to the administering authority’s

11 direction, the United States Customs Service shall

12 assess and collect the antidumping duty determined

13 for each entry of the merchandise from the first pur14 chaser in the United States that is independent of

15 the exporter, manufacturer, and producer, and per16 sons defined as the exporter in section 771(13).

17 ‘‘(2) PROHIBITION AGAINST ABSORPTION OR

18 REIMBURSEMENT.—

19 ‘‘(A) IN GENERAL.—Neither the exporter,

20 manufacturer, and producer, and persons de21 fined as the exporter in section 771(13) nor any

22 other person may absorb or reimburse directly

23 or indirectly to the first unrelated purchaser in
4

HR 2528 IH

1 the United States the antidumping duty deter2 mined for the merchandise.

3 ‘‘(B) CERTIFICATION.—Upon collection of

4 the antidumping duty, the administering au5 thority through the United States Customs

6 Service shall obtain from the first unrelated

7 purchaser in the United States and the ex8 porter, manufacturer, and producer, including

9 any person deemed an exporter under section

10 771(13), written certification as to whether or

11 not absorption or direct or indirect reimburse12 ment of the antidumping duty determined has

13 occurred or will be effected in the future. Fail14 ure to file such certification will be construed as

15 conclusive indication of unlawful final payment

16 of the antidumping duty determined by a per17 son other than the first unrelated purchaser in

18 the United States.

19 ‘‘(C) INVESTIGATION.—The administering

20 authority with the assistance of the United

21 States Customs Service shall investigate when22 ever reasonable grounds are present to believe

23 or suspect that absorption or direct or indirect

24 reimbursement of the antidumping duty deter25 mined has taken place.
5

HR 2528 IH

1 ‘‘(D) ENFORCEMENT.—If absorption or di2 rect or indirect reimbursement of the antidump3 ing duty determined is established, then, in ad4 dition to any civil and criminal penalties that

5 may be appropriate, the administering authority

6 shall have the United States Customs Service

7 assess and collect from the first unrelated pur8 chaser in the United States the amount of the

9 antidumping duty determined that is found to

10 have been absorbed or reimbursed together with

11 interest. Notwithstanding any other provision of

12 law, such reliquidation will be carried out with

13 respect to each entry as often as absorption or

14 reimbursement is confirmed for that entry.

15 Final payment of the antidumping duty

16 detemined by any person other than the first

17 unrelated purchaser in the United States shall

18 not be returned.’’.

19 (b) Section 706 of the Tariff Act of 1930 (19 U.S.C.

20 1671e) is amended by adding at the end thereof the fol21 lowing new subsection:

22 ‘‘(c) FINAL PAYMENT OF DUTY.—

23 ‘‘(1) ASSESSMENT AND COLLECTION RE24 QUIRED.—Pursuant to the administering authority’s

25 direction, the United States Customs Service shall
6

HR 2528 IH

1 assess and collect the countervailing duty determined

2 for each entry of the merchandise from the first pur3 chaser in the United States that is independent of

4 the exporter, manufacturer, and producer, and per5 sons defined as the exporter in section 771(13).

6 ‘‘(2) PROHIBITION AGAINST ABSORPTION OR

7 REIMBURSEMENT.—

8 ‘‘(A) IN GENERAL.—Neither the exporter,

9 manufacturer, and producer, and persons de10 fined as the exporter in section 771(13) nor any

11 other person may absorb or reimburse directly

12 or indirectly to the first unrelated purchaser in

13 the United States the countervailing duty deter14 mined for the merchandise.

15 ‘‘(B) CERTIFICATION.—Upon collection of

16 the countervailing duty, the administering au17 thority through the United States Customs

18 Service shall obtain from the first unrelated

19 purchaser in the United States and the ex20 porter, manufacturer, and producer, including

21 any person deemed an exporter under section

22 771(13), written certification as to whether or

23 not absorption or direct or indirect reimburse24 ment of the countervailing duty determined has

25 occurred or will be effected in the future. Fail-
7

HR 2528 IH

1 ure to file such certification will be construed as

2 a presumption of unlawful final payment of the

3 countervailing duty determined by a person

4 other than the first unrelated purchaser in the

5 United States.

6 ‘‘(C) INVESTIGATION.—The administering

7 authority with the assistance of the United

8 States Customs Service shall investigate when9 ever reasonable grounds are present to believe

10 or suspect that absorption or direct or indirect

11 reimbursement of the countervailing duty deter12 mined has taken place.

13 ‘‘(D) ENFORCEMENT.—If absorption or di14 rect or indirect reimbursement of the counter15 vailing duty determined is established, then, in

16 addition to any civil and criminal penalties that

17 may be appropriate, the administering authority

18 shall have the United States Customs Service

19 assess and collect from the first unrelated pur20 chaser in the United States the amount of the

21 countervailing duty determined that is found to

22 have been absorbed or reimbursed together with

23 interest. Notwithstanding any other provision of

24 law, such reliquidation will be carried out with

25 respect to each entry as often as absorption or
8

HR 2528 IH

1 reimbursement is confirmed for that entry.

2 Final payment of the countervailing duty deter3 mined by any person other than the first unre4 lated purchaser in the United States shall not

5 be returned.’’.

6 SEC. 102. ADMINISTRATIVE REVIEW OF DETERMINATIONS.

7 Section 751 of the Tariff Act of 1930 (19 U.S.C.

8 1675) is amended by adding at the end thereof the follow9 ing new paragraph—

10 ‘‘(g) ANNUAL REPORT TO THE HOUSE WAYS AND

11 MEANS COMMITTEE AND SENATE FINANCE COMMIT12 TEE.—By the close of February each year, the administer13 ing authority shall report to the House Ways and Means

14 Committee and the Senate Finance Committee the num15 ber of administrative reviews commenced in the prior cal16 endar year, the number of reviews completed during the

17 calendar year within eighteen months of initiation, the

18 number of reviews completed during the calendar year in

19 longer than eighteen months after initiation, and for each

20 review that remains incomplete at the end of the calendar

21 year more than eighteen months after initiation, an esti22 mated schedule for completion (including dates for pre23 liminary and final determinations).’’.
9

HR 2528 IH

1 SEC. 103. POST-INITIATION EVENTS AND RELEVANCE TO

2 MATERIAL INJURY DETERMINATION.

3 Section 771(7)(C) of the Tariff Act of 1930 (19

4 U.S.C. 1677(7)(C)) is amended by adding at the end

5 thereof the following: ‘‘Except as specified in subpara6 graph (7)(C)(i), in evaluating volume and price effects

7 pursuant to this subparagraph, the Commission may in

8 its discretion disregard developments after the filing of the

9 petition.’’.

10 SEC. 104. DETERMINATION OF MATERIAL INJURY.

11 (a) VOLUME OF IMPORTS.—Section 771(7)(C)(i) of

12 the Tariff Act of 1930 (19 U.S.C. 1677(7)(C)(i)) is

13 amended by adding at the end thereof the following new

14 sentence: ‘‘An inference shall not be made that there is

15 no material injury, if the volume of imports has decreased

16 after the initiation of an investigation under section 702

17 or 732.’’.

18 (b) PRICE COMPETITION.—Section 771(7)(C)(ii) of

19 such Act (19 U.S.C. 1677(7)(C)(ii)) is amended by insert20 ing immediately after subclause (II) the following flush

21 sentence: ‘‘For purposes of this clause, the Commission

22 shall compare the price at which imported merchandise is

23 sold to the ultimate consumer with the price at which like

24 products of the United States are sold to the ultimate

25 consumer.’’.
10

HR 2528 IH

1 SEC. 105. PUBLICATION OF CERTAIN CASH DEPOSITS AND

2 DUTIES COLLECTED.

3 Section 487 is added to the Tariff Act of 1930, as

4 amended (19 U.S.C. 1487):

5 ‘‘SEC. 487. ANNUAL REPORT OF SELECTED DUTIES.

6 ‘‘(a) For merchandise subject to antidumping find7 ings or orders or countervailing duty orders as those terms

8 are defined in section 303 or title VII of the Tariff Act

9 of 1930, as amended, the Secretary of the Treasury shall

10 report not less frequently than once a year:

11 ‘‘(1) the quantity, declared value, and anti12 dumping and/or countervailing duty cash deposits by

13 investigation number and review period (as those

14 terms are defined by the administering authority (19

15 U.S.C. 1677(1))) for merchandise that remains un16 liquidated;

17 ‘‘(2) the quantity, declared value, and anti18 dumping and/or countervailing duties collected by in19 vestigation number and review period (as those

20 terms are defined by the administering authority (19

21 U.S.C. 1677(1))) for merchandise that has been liq22 uidated since the last report was issued; and

23 ‘‘(3) the quantity and declared value of any en24 tries that the Secretary has determined were liq25 uidated without the assessment of antidumping and/

26 or countervailing duties without a finding by the ad-
11

HR 2528 IH

1 ministering authority that such merchandise was not

2 liable for antidumping and/or countervailing duties;

3 the Secretary shall include in his report a summary

4 of allegations of non-payment and what steps, if any,

5 were taken to determine the magnitude of any pre6 mature liquidations.’’.

7 SEC. 106. THREAT OF INJURY STANDARD.

8 (a) Section 771(7)(F)(i) of the Tariff Act of 1930

9 (19 U.S.C. 1677(7)(F)(i)) is amended by adding at the

10 end thereof the following—

11 ‘‘(XI) the actual and potential decline

12 in order backlog of the domestic industry.

13 ‘‘(XII) for purposes of subsection (F)

14 the Commission shall give consideration to

15 monthly or quarterly trend information

16 through the month of the filing of the peti17 tion. Post-initiation changes in trends

18 should not result in a negative determina19 tion where trends to the time of filing

20 would support an affirmative determina21 tion.’’.

22 SEC. 107. ACTUAL AND POTENTIAL DECLINES IN MATERIAL

23 INJURY DETERMINATION.

24 (a) Section 771(7)(C) of the Tariff Act of 1930, as

25 amended (19 U.S.C. 1677(7)(C)), is amended by adding
12

HR 2528 IH

1 at the end thereof the following: ‘‘For the purposes of this

2 subsection, the term ‘potential decline’ means the decline

3 that can be reasonably deduced by comparing actual per4 formance to the performance (e.g., output, sales, etc.) that

5 could have been but for the economic factors (including

6 unfairly traded imports) which have a bearing on the state

7 of the industry). The term ‘potential negative effects’

8 means the adverse effects that can be reasonably deduced

9 by comparing actual performance to the performance that

10 could have been expected but for the economic factors (in11 cluding unfairly traded imports) which have a bearing on

12 the state of the industry. Where ‘actual declines’ or ‘actual

13 negative effects’ are sufficient to warrant an affirmative

14 determination, the Commission need not evaluate ‘poten15 tial declines’ or ‘potential effects’ under subsection (iii)

16 (I), (III) and (IV).’’.

17 SEC. 108. INVESTIGATION OF SALES AT LESS THAN COST

18 OF PRODUCTION.

19 (a) Section 773(b) of the Tariff Act of 1930 (19

20 U.S.C. 1677b(b)) is amended:

21 (1) by inserting ‘‘for all producers or exporter

22 being investigated or reviewed’’ after the phrase ‘‘at

23 less than the cost of producing the merchandise’’

24 each time it appears in paragraph (b); and
13

HR 2528 IH

1 (2) by inserting ‘‘by any foreign producer or ex2 porter’’ after ‘‘have been made’’ in subparagraph

3 (b)(1).

4 SEC. 109. CUMULATION.

5 (a) CUMULATION.—Section 771(7)(C)(iv) of the Tar6 iff Act of 1930 (19 U.S.C. 1677 (7)(C)(iv)) is amended

7 by adding at the end thereof the following new subclause:

8 ‘‘(III) LOOK-BACK.—For purposes of

9 clauses (i) and (ii) and subparagraph (F),

10 if a petition is filed under this title with re11 spect to a product or like product which

12 was the basis of a final affirmative deter13 mination during the 3 years preceding the

14 filing of such petition, the Commission

15 shall consider as part of its investigation of

16 the new petition the previous injurious

17 dumping or subsidization as an important

18 factor in determining the industry’s vulner19 ability to continued or renewed material in20 jury.’’.

21 (b) CONCENTRATION OF IMPORTS.—Section

22 771(4)(C) of such Act (19 U.S.C. 1677(4)(C)) is amended

23 by adding at the end thereof the following new sentence:

24 ‘‘Concentration of subsidized or dumped imports exists

25 with respect to a market, if the percentage of subsidized
14

HR 2528 IH

1 or dumped imports to consumption of imports and domes2 tically produced like products in such market is clearly

3 higher than the percentage is in the rest of the United

4 States.’’.

5 SEC. 110. DUAL PRICING.

6 Section 773(a)(4) of the Tariff Act of 1930 (19

7 U.S.C. 1677b(a)(4)) is amended by adding at the end the

8 following new sentence: ‘‘No allowance shall be made to

9 account for differences in input costs that are based on

10 whether the end product made from the input is sold in

11 the home market or exported.’’.

12 SEC. 111. CLARIFICATION OF ADJUSTMENTS TO FOREIGN

13 MARKET VALUE.

14 (a) Section 773(a) of the Tariff Act of 1930, as

15 amended (19 U.S.C. 1677b(a)), is amended by inserting

16 at the end of paragraph (a) the following: ‘‘No adjustment

17 shall be made to foreign market value because of adjust18 ments made to United States price pursuant to section

19 1677a (d) or (e) of title 19, United States Code.’’.

20 SEC. 112. INTEREST ON POST FINDINGS.

21 (a) Section 737 of the Tariff Act of 1930, as amend22 ed (19 U.S.C. 1677g), is amended by changing subpara23 graph ‘‘(b)’’ to read ‘‘(c)’’ and inserting a new subpara24 graph (b)—
15

HR 2528 IH

1 ‘‘(b) SPECIAL RULE FOR INTEREST ON POST FIND2 ING ENTRIES.—For antidumping findings made under the

3 Antidumping Act, 1921, all entries made after the date

4 of the finding which were entered under bond and remain

5 unliquidated as of the date of enactment of this legislation

6 shall be assessed interest from the date of entry to the

7 date of liquidation, the bond being treated as a zero

8 cash deposit for purposes of determining over or

9 underpayment.’’.

10 SEC. 113. COMPENSATION AWARDS.

11 Section 736 of the Tariff Act of 1930 (19 U.S.C.

12 1673e) is amended by adding at the end thereof the fol13 lowing new section:

14 ‘‘SEC. 736A. COMPENSATION AWARDS.

15 ‘‘(a) DEFINITIONS.—For the purposes of this section:

16 ‘‘(1) the term ‘affected domestic producer’

17 means any manufacturer or producer within the do18 mestic industry with respect to which an affirmative

19 injury determination was made in connection with

20 an antidumping order;

21 ‘‘(2) the term ‘antidumping order’ means an

22 antidumping duty order published under section 736

23 of the Tariff Act of 1930;

24 ‘‘(3) the term ‘Commission’ means the United

25 States International Trade Commission;
16

HR 2528 IH

1 ‘‘(4) the term ‘dumped merchandise’ means

2 merchandise with respect to which an antidumping

3 duty is imposed under an antidumping order; and

4 ‘‘(5) the term ‘dumping period’ means the pe5 riod of time during which foreign merchandise sub6 ject to an antidumping order was sold, or offered for

7 sale, in the United States at less than fair value and

8 applied by the Commission for purposes of making

9 a determination under section 735(b) of the Tariff

10 Act of 1930 with respect to the domestic industry

11 that produced a like or directly competitive product.

12 ‘‘(b) APPLICATION PROCESS.—The Commission shall

13 prescribe procedures governing when and the form and

14 manner in which affected domestic producers may apply

15 to the Commission for compensation under this section.

16 ‘‘(c) DETERMINATION OF COMPENSATION.—

17 ‘‘(1) Upon receiving a timely application under

18 subsection (b), the Commission shall determine if

19 the applicant—

20 ‘‘(A) is an affected domestic producer, and

21 ‘‘(B) suffered any degree of economic in22 jury during the dumping period as a result of

23 the sale, or offer for sale, in the United States

24 of the dumped merchandise.
17

HR 2528 IH

1 This determination shall be completed by the 90th

2 calendar day from receipt of the application under

3 subsection (b).

4 ‘‘(2) If the Commission makes an affirmative

5 determination under paragraphs (1) (A) and (B), it

6 shall, within sixty calendar days from such deter7 mination—

8 ‘‘(A) determine the monetary value of the

9 economic injury that was suffered by the appli10 cant; and

11 ‘‘(B) issue to the applicant a compensation

12 award stating the amount of money which is

13 payable to the applicant from the appropriate

14 special compensation account established under

15 subsection (d).

16 Compensation award payable under this section shall

17 be provided to the affected domestic producers only

18 so long as monies are available within the appro19 priate special compensation account.

20 ‘‘(d) SPECIAL COMPENSATION ACCOUNTS.—

21 ‘‘(1) On the date an antidumping duty order

22 takes effect, the Secretary of the Treasury (hereafter

23 referred to as the Secretary in this section) shall es24 tablish in the Treasury of the United States a spe25 cial compensation account with respect to the order.
18

HR 2528 IH

1 ‘‘(2) The Secretary shall deposit into a special

2 compensation account one-half of all antidumping

3 duties that are collected under the antidumping

4 order with respect to which the account was estab5 lished.

6 ‘‘(3) The monies in a special compensation ac7 count shall be available for payment of compensation

8 awards issued under subsection (c)(2) in conjunction

9 with the antidumping order with respect to which

10 the account was established.

11 ‘‘(4) The Secretary shall by regulation prescribe

12 the time and manner in which payment of com13 pensation awards from special compensation ac14 counts will be made. Additional compensation pay15 ments can be made in future years if additional anti16 dumping duties are deposited in the account.

17 ‘‘(5) After a period of seven years from the date

18 the special compensation account is established, the

19 Secretary shall terminate the account and upon ter20 mination of said account all antidumping duties col21 lected under the antidumping order with respect to

22 which the account was established shall be deposited

23 into the general fund of the Treasury as miscellane24 ous receipts.’’.
19

HR 2528 IH

1 SEC. 114. DIVERSIONARY INPUT DUMPING.

2 (a) IN GENERAL.—Subtitle D of title VII of the Tar3 iff Act of 1930 (19 U.S.C. 167 et seq.) is amended by

4 inserting after section 771B the following new section:

5 ‘‘SEC. 771C. DIVERSIONARY INPUT DUMPING.

6 ‘‘For purposes of this title, diversionary input dump7 ing occurs when—

8 ‘‘(1) a producer or manufacturer incorporates

9 into merchandise under investigation a component or

10 a material which is the subject of—

11 ‘‘(A) an antidumping duty order issued

12 under section 736, or

13 ‘‘(B) an international arrangement or

14 agreement described in section 734, if such ar15 rangement or agreement was entered into after

16 an affirmative preliminary determination was

17 made under section 733(b), and

18 ‘‘(2) the producer or manufacturer under inves19 tigation purchased the material or component at a

20 price which is less than the foreign market value

21 (determined under section 773(e)).’’.

22 (b) FOREIGN VALUE.—

23 (1) IN GENERAL.—Paragraph (2) of section

24 773(a) of such act (19 U.S.C. 1677b(A)(2)) is

25 amended by inserting ‘‘(or, if the administering au26 thority finds there is a reasonable basis to believe
20

HR 2528 IH

1 that diversionary input dumping is occurring which

2 has a significant effect on the cost of producing the

3 merchandise under investigation)’’ after ‘‘paragraph

4 (1)(A)’’.

5 (2) SPECIAL RULE FOR DIVERSIONARY INPUT

6 DUMPING.—Section 773(e) of such Act (19 U.S.C.

7 1677b(e)) is amended by adding at the end thereof

8 the following new paragraph:

9 ‘‘(5) DIVERSIONARY INPUT DUMPING.—If the

10 administering authority determines that diversionary

11 input dumping is occurring and has a significant ef12 fect on the cost of producing the merchandise under

13 investigation, the administering authority shall, in

14 calculating the cost of the material or component

15 under paragraph (1)(A), include the amount of the

16 diversionary input dumping determined to exist with

17 respect to such material or component. For purposes

18 of the preceding sentence, the amount of the diver19 sionary input dumping is the difference, if any, by

20 which

21 ‘‘(A) the foreign market value of the input

22 material or component involved, as calculated

23 under this title, exceeds

24 ‘‘(B) the purchase price of the input mate25 rial or component paid by the producer or man-
21

HR 2528 IH

1 ufacturer of the merchandise under investiga2 tion.’’.

3 (c) PROCEDURES OF INITIATING AN ANTIDUMPING

4 INVESTIGATION.—Section 732(a) of such Act (19 U.S.C.

5 1673a(A)) is amended by adding at the end thereof the

6 following new paragraph:

7 ‘‘(3) CASES INVOLVING DIVERSIONARY INPUT

8 DUMPING.—The administering authority shall inves9 tigate whether diversionary input dumping is occur10 ring whenever the administering authority has rea11 sonable grounds to believe or suspect that—

12 ‘‘(A) diversionary input dumping (as de13 fined in section 771(c)) is occurring,

14 ‘‘(B) such diversionary input dumping has

15 a significant effect on the cost of producing the

16 merchandise under investigation, and

17 ‘‘(C) official government or other reliable,

18 generally accepted trade statistics indicate that

19 subsequent to the imposition of an antidumping

20 duty order or entry into force of an inter21 national agreement relating to imports into the

22 United States of the material or component in

23 question, shipments to the United States of the

24 merchandise under investigation have increased

25 (either in quantity or market share).’’.
22

HR 2528 IH

1 (d) TIMETABLE FOR PRELIMINARY DETERMINATION

2 BY ADMINISTERING AUTHORITY.—Section 733(b)(1) of

3 such Act (19 U.S.C. 1673b(b)(1)) is amended by adding

4 at the end thereof the following new subparagraph:

5 ‘‘(D) IF DIVERSIONARY INPUT DUMPING

6 INVOLVED.—If, as part of a petition filed under

7 section 732(b), or an investigation commenced

8 under section 732(a), the administering author9 ity has reasonable grounds to believe or suspect

10 that diversionary input dumping is occurring,

11 the administering authority may treat the inves12 tigation as an extraordinarily complicated case

13 under subsection (c) and may extend the period

14 of time for making a preliminary determination

15 accordingly.’’.

16 (e) CLERICAL AMENDMENT.—The table of contents

17 for subtitle VII of the Tariff Act of 1930 is amended by

18 inserting after the item relating to section 771B the fol19 lowing new item:

‘‘Sec. 771C. Diversionary input dumping.’’.

20 SEC. 115. UPSTREAM SUBSIDIES.

21 (a) DEFINITION.—Section 771(A) of the Tariff Act

22 of 1930 is amended in its last sentence by inserting after

23 ‘‘subsidy is provided’’ the words ‘‘or authorized’’.
23

HR 2528 IH

1 (b) DETERMINATION OF COMPETITIVE BENEFIT IN

2 UPSTREAM SUBSIDIES.—Section 771A(b)(1) of the Tariff

3 Act of 1930 (19 U.S.C. 1677–1(b)(1)) is amended:

4 (1) by striking ‘‘Except’’ and inserting ‘‘(A)

5 Except,’’

6 (2) by striking ‘‘another seller’’ and inserting

7 ‘‘an unsubsidized seller in’’ subparagraph (A), as re8 designated by paragraph (1), and

9 (3) by adding at the end thereof the following

10 new paragraph—

11 ‘‘(B) For purposes of subparagraph (A),

12 determination of the price the manufacturer or

13 producer would otherwise pay for the product in

14 obtaining it from an unsubsidized seller shall be

15 based on the following factors in the order in

16 which such factors are listed:

17 ‘‘(i) the price paid by the manufac18 turer or producer to an unsubsidized seller

19 located in the same country as the seller of

20 the input product,

21 ‘‘(ii) the price paid by the manufac22 turer or producer to an unsubsidized seller

23 located in a country other than the country

24 of the input product,
24

HR 2528 IH

1 ‘‘(iii) the price paid (including any de2 livery fees) to an unsubsidized producer lo3 cated in the same country as the seller of

4 the input products, or

5 ‘‘(iv) the price (including delivery

6 fees) paid to an unsubsidized producer lo7 cated in a country other than the country

8 of the seller of the input product.’’.

9 SEC. 116. EXPORTATION FROM AN INTERMEDIATE COUN10 TRY.

11 (a) Section 773(b) of the Tariff Act of 1930 (19

12 U.S.C. 1677b) is amended by adding at the end thereof:

13 ‘‘In situations described under subsection (f), allegations

14 of sales below cost shall be evaluated against the cost of

15 production of the actual manufacturer plus all charges as16 sessed or costs incurred by other parties, including the

17 reseller.’’.

18 (b) Section 773(c) of the Tariff Act of 1930 (19

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

20 the following new paragraph:

21 ‘‘(5) INTERMEDIATE COUNTRY RESALES.—Not22 withstanding anything to the contrary in subsection

23 (f), if the merchandise under investigation is—

24 ‘‘(A) produced in a nonmarket economy

25 country;
25

HR 2528 IH

1 ‘‘(B) resold by a reseller in an intermediate

2 country; and

3 ‘‘(C) resold by such reseller at prices that

4 represent less than the cost of producing the

5 merchandise in question (including costs of pro6 duction for the nonmarket economy country de7 termined pursuant to this subsection);

8 than the administering authority shall determine the

9 foreign market value of the merchandise on the basis

10 of the value of the factors of production utilized in

11 producing the merchandise in the country of produc12 tion as determined pursuant to this subsection, to

13 which shall be added an amount for general ex14 penses and profit of the producer and reseller, plus

15 the cost of containers, covering, and other expenses,

16 as required by subsection (e).’’.

17 SEC. 117. AUTHORITY TO EXAMINE CUSTOMS VALUATION.

18 (a) Subsection (b)(1) of section 777 of the Tariff Act

19 of 1930 is amended by adding:

20 (1) ‘‘either’’ after ‘‘Customs Service who is’’;

21 and

22 (2) ‘‘or is reviewing the propriety of the cus23 toms valuation on which customs duties were cal24 culated for a deduction from United States Price

25 (19 U.S.C. 1677a) pursuant to a request from the
26

HR 2528 IH

1 administering authority’’ after ‘‘fraud under this

2 title’’.

3 (b) Section 772 of the Tariff Act of 1930 (19 U.S.C.

4 1677a) is amended by adding a new subsection at the end

5 thereof:

6 ‘‘(f) REFERRAL TO CUSTOMS.—The administering

7 authority shall refer to Customs for expedited consider8 ation claims that the import duties required to be de9 ducted from United States under subsection (d)(2)(A) are

10 understated by reason of possible understatement of cus11 toms valuation. Where Customs determines that customs

12 valuation on the merchandise in question is undervalued,

13 the administering authority shall deduct the import duties

14 identified by customs as properly owed for purposes of

15 making its final determination.’’.

16 SEC. 118. STUDY FOR SIMPLIFYING INITIATION OF COUN17 TERVAILING AND ANTIDUMPING DUTY AC18 TIONS.

19 Not later than 180 days after the date of the enact20 ment of this Act, the Secretary of Commerce and the

21 International Trade Commission shall transmit to the

22 Congress a study, including recommendations, regarding

23 the modification of standards applicable to the initiation

24 of countervailing and antidumping duty action in order to

25 make petitioning for such initiations less costly and more
27

HR 2528 IH

1 accessible for domestic petitioners. In conducting such

2 study, the Secretary and the Commission shall give due

3 consideration to the obligations of the United States under

4 international trade agreements.

5 SEC. 119. SPECIAL RULE—RELATIVE UNITED STATES CON6 TENT.

7 Section 732(b) of the Tariff Act of 1930, as amended

8 (19 U.S.C. 1673a(b)), is amended by adding the following

9 new subsection at the end thereof:

10 ‘‘(3) SPECIAL RULE—RELATIVE UNITED

11 STATES CONTENT.—

12 ‘‘(A) In special circumstances described in

13 subsection (b)(3)(B), in determining whether

14 the petition is filed on behalf of a domestic in15 dustry, account shall be taken of the relative

16 United States content of:

17 ‘‘(i) the imported merchandise which

18 is the subject of the petition; and

19 ‘‘(ii) the like product produced in the

20 United States by the petitioner and other

21 United States producers supporting the

22 petition.

23 ‘‘(B) Whenever the cost of materials and

24 the direct cost of processing or assembling the

25 merchandise which is the subject of the petition
28

HR 2528 IH

1 is to a significant degree of United States ori2 gin (at least 2 percent of the cost of manufac3 ture) and roughly approximates or exceeds the

4 United States content of the product of the pe5 titioner at the time of the filing of the petition,

6 the administering authority shall determine

7 whether the petition is filed on behalf of a do8 mestic industry by measuring the value of Unit9 ed States content (excluding GS & A but in10 cluding research and development costs) for

11 both domestic production or assembly and the

12 imported product and by disregarding the provi13 sions of section 1677(4)(B) of title 19, United

14 States Code.’’.

15 SEC. 120. REIMBURSEMENT OF ANTIDUMPING DUTIES.

16 Section 772(d)(2) of the Tariff Act of 1930, as

17 amended (19 U.S.C. 1677a(d)(2)) is amended by adding

18 a new subparagraph at the end thereof—

19 ‘‘(C) the amount of any antidumping duty

20 which the producer, exporter, or reseller;

21 ‘‘(i) pays or will pay, directly or indi22 rectly, on behalf of the importer, whether

23 related or unrelated; or

24 ‘‘(ii) reimburses to the importer,

25 whether related or unrelated, either before
29

HR 2528 IH

1 or after assessment, and either directly or

2 indirectly through any means, including

3 but not limited to transferring merchandise

4 to a related importer at prices below cost

5 of production plus normal profit. For pur6 poses of this subsection, nothing in the

7 definition of ‘exporter’ in section 1677(13)

8 of title 19, United States Code shall pre9 clude application of this provision to ‘ex10 porter’s sales price’ calculations. Further,

11 transfer prices between related parties at

12 less than cost of production plus normal

13 profit are presumed to constitute indirect

14 reimbursement absent an affirmative show15 ing by the importer to the contrary.’’.

16 SEC. 121. DETERMINATION OF UNITED STATES PRICE.

17 Section 772(e)(1) of the Tariff Act of 1930 (19

18 U.S.C. 1677a(e)(1)) is amended by inserting ‘‘and reason19 able profits from selling in the United States’’ after the

20 phrase ‘‘under consideration’’.

21 SEC. 122. RELIQUIDATION OF CERTAIN ENTRIES.

22 (a) Section 500 of the Tariff Act of 1930 (19 U.S.C.

23 1500) is amended by adding the following new subsection:

24 ‘‘(f) reliquidate any entries that should have been

25 subject to an antidumping or countervailing duty order or
30

HR 2528 IH

1 finding but which were erroneously liquidated either by ac2 tion of the foreign producer, exporter or importer or by

3 action of the Customs Service.’’.

4 (b) Section 516A of the Tariff Act of 1930 (19

5 U.S.C. 516A) is amended by adding at the end thereof

6 the following new section:

7 ‘‘SEC. 516B. REQUEST FOR ACCOUNTING.

8 ‘‘(a) REQUEST FOR ACCOUNTING.—The Secretary

9 shall, upon written request by an interested party who

10 supported the petition, provide access to the record of

11 identified importers under a protective order drawn in con12 formity to the provisions of section 777 of this Act, as

13 to all entry papers on entries made during the twelve

14 months prior to the request or as to all documents con15 nected with liquidations made during the twelve months

16 prior to the request.

17 ‘‘(b) DEFINITION.—As used in this section, the term

18 ‘interested party who supported a petition’ shall refer to

19 companies, workers or associations referred to in section

20 771(9) (C), (D) or (E) who were a petitioner or filed a

21 letter in support of the petition with the administering au22 thority and submitted written views during the course of

23 the original investigation. The terms ‘Secretary’ and ‘ad24 ministering authority’ have the same meanings as pro-
31

HR 2528 IH

1 vided in section 516A(f) (1) and (4) of this Act (19 U.S.C.

2 1516a(f) (1) and (4)).

3 ‘‘(c) REFERRAL TO THE SECRETARY OR ADMIN4 ISTERING AUTHORITY.—

5 ‘‘(1) If an interested party who supported a pe6 tition discovers information in the entry papers or

7 the liquidation documents that raise questions as to

8 the proper administration of the antidumping or

9 countervailing duty finding or order, such informa10 tion shall be notified to the Secretary.

11 ‘‘(2) The Secretary shall have such information

12 reviewed expeditiously and corrective action, if war13 ranted, taken, including pursuant to section 500(f)

14 of this Act. If the information notified pertains to

15 incorrect assessment instructions from the admin16 istering authority or to coverage of particular prod17 ucts under outstanding antidumping or countervail18 ing duty fines or orders, the Secretary shall transmit

19 such information to the administering authority for

20 expedited resolution of coverage. The results of all

21 such reviews shall be communicated in writing to the

22 interested party who supported a petition.

23 ‘‘(d) CIVIL ACTION.—Within thirty days of receipt of

24 the written communication, the interested party who sup25 ported a petition may commence a civil action in the
32

HR 2528 IH

1 United States Court of International Trade for a review

2 of the determination made by the Secretary or administer3 ing authority.

4 ‘‘(e) RECORD FOR REVIEW.—The documents notified

5 to the Secretary, such documents from the original inves6 tigation as the parties may designate and documents per7 taining to liquidation instructions from the administering

8 authority and final determinations by the administering

9 authority relevant to liquidation amounts shall constitute

10 the record for review.

11 ‘‘(f) STANDARD OF REVIEW.—Whether the chal12 lenged determination is supported by substantial evidence

13 or is otherwise in accordance with law.

14 ‘‘(g) RECOVERY OF COSTS.—Where the determina15 tion of the Secretary or the administering authority is re16 versed or modified, the interested party who supported the

17 petition may recover reasonable attorney fees for the court

18 litigation.’’.

19 SEC. 123. ADMINISTRATIVE REVIEWS.

20 Section 751(a)(2) of the Tariff Act of 1930 (19

21 U.S.C. 1675(a)(2)) is amended by adding at the end

22 thereof the following new subsection:

23 ‘‘(3) REQUESTS FOR REVIEWS BY DOMESTIC

24 PRODUCERS.—The administering authority shall

25 conduct a review of any foreign producer identified
33

HR 2528 IH

1 by a domestic interested party within the meaning of

2 sections 1677(9) (C)–(G) of title 19, United States

3 Code or, where the domestic interested party does

4 not know the identity of individual foreign produc5 ers, the foreign producers supplying identified im6 porters or purchaser of the imported product.’’.

7 SEC. 124. USE OF PROTECTIVE ORDER INFORMATION.

8 Section 777(c)(1)(A) of the Tariff Act of 1930 (19

9 U.S.C. 1677f(c)(1)(A)) is amended by adding to the end

10 thereof the following: ‘‘Information released under protec11 tive order during an investigation or administrative review

12 by the administering authority may be maintained under

13 protective order during the pendency of the proceeding for

14 the purpose of identifying potential factual discrepancies

15 between periods investigated or to allege relevant issues

16 in subsequent administrative reviews including the exist17 ence of a fictitious market (19 U.S.C. 167b(a)(5)) or sales

18 below cost of production (19 U.S.C. 1677b(b))’’.

19 SEC. 125. FURTHER MANUFACTURED GOODS.

20 Section 772(e)(3) of the Tariff Act of 1930 (19

21 U.S.C. 1677a(e)(3)) is amended by adding at the end

22 thereof the following: ‘‘In deducting profits from assembly

23 or manufacture, profits may be allocated between value

24 added in the United States and parts or products imported

25 as long as the profits attributable to the United States
34

HR 2528 IH

1 value added is not below the level earned by unrelated

2 manufacturers in the United States for the same class of

3 merchandise. Notwithstanding the provisions of this sub4 paragraph, if the transfer price of the product or (where

5 more than one product or item subject to investigation or

6 review) products is less than 1 percent of the resale value

7 of the assembled or further manufactured product, United

8 States prices shall be based on transfer price without re9 gard to the adjustments identified in subparagraph (3).’’.

10 SEC. 126. USE OF CONSTRUCTED VALUE.

11 Section 772(a)(2) of the Tariff Act of 1930 (19

12 U.S.C. 1677b(a)(2)) is amended by adding at the end

13 thereof the following sentence: ‘‘Absent a finding of a ficti14 tious market under subparagraph (a)(1) or (a)(5) or com15 pliance with the provisions of subsection (b), constructed

16 value shall not be used to determine foreign market value

17 where the home market or third country markets account

18 for at least 10 percent by volume of exports to the United

19 States.’’.

20 SEC. 127. PATENT EQUITY AND BANNED SUBSTANCES.

21 (a) Section 337(a)(1)(B) of the Tariff Act of 1930

22 (19 U.S.C. 1337(a)(1)(B)) is amended by—

23 (1) striking ‘‘or’’ at the end of subparagraph

24 (B)(i);
35

HR 2528 IH

1 (2) striking the period at the end of subpara2 graph (B)(ii) and inserting ‘‘;’’ in lieu thereof; and

3 (3) adding the following at the end thereof:

4 ‘‘(iii) have been grown, made, produced,

5 processed, or mined pursuant to a valid patent

6 or patents where patent royalties paid are lower

7 than those paid by agricultural, horticultural, or

8 manufacturing operations in the United States;

9 or

10 ‘‘(iv) have been grown or treated with pes11 ticides or other substances banned for use in

12 the United States.’’.

13 SEC. 128. CIRCUMVENTION TIMELINES AND PROCEDURAL

14 REQUIREMENTS.

15 (a) CIRCUMVENTION TIMELINES AND PROCEDURAL

16 REQUIREMENTS.—Section 781(a) of the Tariff Act of

17 1930 (19 U.S.C. 1677j(a)) is amended by adding at the

18 end thereof the following:

19 ‘‘(3) CIRCUMVENTION TIMELINES AND PROCE20 DURAL REQUIREMENTS.—

21 ‘‘(A) Upon the filing of a petition contain22 ing allegations of circumvention of antidumping

23 and countervailing duty orders, the administer24 ing authority will determine within 20 days

25 whether to initiate an investigation.
36

HR 2528 IH

1 ‘‘(B) Within 180 days of the initiation of

2 an investigation, the administering authorities

3 will make a preliminary affirmative or negative

4 determination.

5 ‘‘(C) The administering authority will give

6 the parties the opportunity to file briefs and

7 participate in a hearing after the preliminary

8 determination.

9 ‘‘(D) The administering authority will

10 issue a final determination within 75 days after

11 the preliminary determination.

12 ‘‘(E) The administering authority will give

13 interested parties the opportunity to obtain con14 fidential information under the administering

15 authority’s administrative protective order pro16 cedures.’’.

17 TITLE II—MARKET ACCESS PROVISIONS

18 SEC. 201. ACCESS TO JAPANESE MARKET BY UNITED

19 STATES MOTOR VEHICLES AND MOTOR VEHI20 CLE PARTS.

21 (a) INITIATION OF ‘‘SECTION 301’’ INVESTIGA22 TION.—Within 60 days after the enactment of this Act,

23 the United States Trade Representative shall initiate an

24 investigation under section 302(b)(1) of the Trade Act of

25 1974 (19 U.S.C. 2412(b)(1)) regarding all those acts,
37

HR 2528 IH

1 policies, and practices of Japan, including, but not limited

2 to—

3 (1) the acts, policies, and practices utilized in

4 the Japanese automotive distribution system;

5 (2) the existence of anticompetitive activities by

6 or among private firms or groups of firms, including

7 so-called families of companies or Keiretsus; such

8 practice may include, inter alia, pricing below cost to

9 keep U.S. parts suppliers from obtaining contracts;

10 (3) exclusionary business practices; and

11 (4) testing requirements and other government

12 regulations;

13 that affect the access to the Japanese market of motor

14 vehicles and motor vehicle parts produced by manufactur15 ers, other than those that are Japanese owned or con16 trolled, that are located in the United States (hereafter

17 in this section referred to as ‘‘United States manufactur18 ers’’).

19 (b) TRADE AGREEMENT NEGOTIATIONS.—During

20 the period of the investigation required under subsection

21 (a), the United States Trade Representative shall enter

22 into negotiations with the Government of Japan for the

23 purpose of concluding a trade agreement that—

24 (1) eliminates or modifies those aspects of the

25 acts, policies, and practices referred to in subsection
38

HR 2528 IH

1 (a) that act as barriers to the Japanese market for

2 exports of motor vehicle and motor vehicle parts pro3 duced by United States manufacturers;

4 (2) provides for the prompt implementation and

5 enforcement by the Government of Japan of its com6 mitments under the Structural Impediments Initia7 tive (SII), the Market-Oriented Sector Specific

8 (MOSS) agreements, the Market-Oriented Coopera9 tion Plan (MOCP), and the Action Plan announced

10 at the Tokyo Summit in January 1992 with respect

11 to trade in, and the purchase of, motor vehicles and

12 motor vehicle parts;

13 (3) establishes longer term goals for the pur14 chase by Japanese motor vehicle parts and acces15 sories from United States manufacturers through

16 immediate parts sourcing arrangements and ‘‘de17 sign-in’’ projects aimed at new model development;

18 (4) establishes procedures for the exchange of

19 information between the appropriate agencies of the

20 United States and Japanese Governments that will

21 permit the accurate assessment of the bilateral trade

22 in motor vehicle parts, particularly with respect to

23 the extent of the purchase of motor vehicle parts

24 produced by United States manufacturers—
39

HR 2528 IH

1 (A) for use by Japanese sources in the

2 Japanese market; and

3 (B) for use in the United States market by

4 manufacturers of motor vehicles, which are

5 Japanese owned or controlled and located with6 in the United States; and

7 (5) establishes such private sector or govern8 ment-sponsored review boards to resolve expedi9 tiously challenges to purchasing decisions by Japa10 nese motor vehicle manufacturers as to compliance

11 with identified specifications or competitiveness on

12 price or other terms.

13 The United States Trade Representative should seek the

14 support of other interested foreign governments in obtain15 ing a trade agreement under this subsection.

16 (c) REPORT IF NEGOTIATIONS UNSUCCESSFUL.—If

17 the negotiation undertaken pursuant to subsection (b) are

18 not successful, the United States Trade Representative

19 shall submit to the Congress a report that—

20 (1) states in detail the reasons why the negotia21 tions were not successful; and

22 (2) sets forth those actions that will be taken,

23 or will be proposed for congressional consideration,

24 to achieve the objectives sought in the negotiations.
40

HR 2528 IH

1 Such report shall be submitted no later than the date by

2 which the determinations under section 304 of the Trade

3 Act of 1974 are required with respect to the investigation

4 initiated under subsection (a).

5 SEC. 202. EXTENSION OF ‘‘SUPER 301’’ AUTHORITY.

6 Section 310(a)(1) of the Trade Act of 1974 (19

7 U.S.C. 2420(a)(1) is amended by striking out ‘‘calendar

8 year 1989, and also the date in calendar year 1990,’’ and

9 inserting ‘‘each of calendar years 1994, 1995, 1996, 1997,

10 and 1998’’.

11 TITLE III—INTERNATIONAL TRADE

12 NEGOTIATIONS

13 SEC. 301. PRINCIPAL TRADE NEGOTIATING OBJECTIVES OF

14 THE UNITED STATES CONCERNING DISPUTE

15 SETTLEMENT MECHANISMS WITH RESPECT

16 TO UNITED STATES COUNTERVAILING DUTY

17 AND ANTIDUMPING ACTIONS.

18 Section 1101(b)(1) of the Omnibus Trade and Com19 petitiveness Act of 1988 (19 U.S.C. 2901(b)(1)) is amend20 ed—

21 (1) by striking ‘‘The principal’’ and inserting

22 ‘‘(A) Subject to subparagraph (B), the principal’’;

23 (2) by redesignating subparagraphs (A) and

24 (B) as clauses (A) (i) and (ii), respectively; and
41

HR 2528 IH

1 (3) by adding at the end the following new sub2 paragraph:

3 ‘‘(B) With respect to review of countervailing

4 duty and antidumping duty actions taken by a sig5 natory to the General Agreement on Tariffs and

6 Trade (GATT) under its national laws, the dispute

7 settlement mechanisms and procedures described in

8 subparagraph (A) shall not allow—

9 ‘‘(i) the review of issues that were not

10 properly presented to the investigating authori11 ties for resolution during the administrative

12 proceeding conducted under such laws;

13 ‘‘(ii) the review of issues before the conclu14 sion of the administrative proceeding conducted

15 under such laws;

16 ‘‘(iii) the conducting of an independent de

17 novo investigation of the circumstances leading

18 to such actions; and

19 ‘‘(iv) where a signatory to the GATT pro20 vides for the administrative or judicial review,

21 by an independent body, of factual issues with

22 respect to countervailing duty and antidumping

23 actions, the extension of the review beyond

24 whether the laws and regulations of that signa25 tory, and the interpretation of such laws and
42

HR 2528 IH

1 regulations by that signatory, are consistent

2 with the General Agreement on Tariffs and

3 Trade.

4 In reaching the principal negotiation objectives de5 scribed in subparagraph (A), all necessary actions

6 shall be taken to promote strong and effective limi7 tations on the scope of and standards applicable to

8 any review of countervailing duty or antidumping

9 duty actions under the dispute settlement mecha10 nisms and procedures described in such subpara11 graph.’’.

12 SEC. 302. GLOBAL STRUCTURAL EXCESS CAPACITY.

13 Section 1101(b) (19 U.S.C. 2901(b)) is amended by

14 adding a new subsection at the end thereof:

15 ‘‘(17) GLOBAL STRUCTURAL EXCESS CAPAC16 ITY.—The principal negotiating objective of the

17 United States regarding situations of global struc18 tural excess capacity is to negotiate multilateral

19 rules to permit rapid realignment of capacity to de20 mand.’’.

21 SEC. 303. APPLICATION OF AMENDMENTS TO MEXICO AND

22 CANADA.

23 The amendments made by this Act apply with respect

24 to goods imported into the United States from Mexico and

25 Canada.
43

HR 2528 IH

1 SEC. 304. INTERNATIONAL TRADE AGREEMENTS ON ANTI2 DUMPING AND TRADE DISTORTING SUB3 SIDIES.

4 (a) Section 1101(b) of the Omnibus Trade and Com5 petitiveness Act of 1988 (19 U.S.C. 2901(b)) is amended

6 by adding at the end thereof the following:

7 ‘‘(18) ANTIDUMPING.—The President shall not

8 enter into any international trade agreement on

9 antidumping requiring changes in United States

10 antidumping laws which would reduce the effective11 ness of such laws as a remedy against injurious

12 dumped imports.

13 ‘‘(19) TRADE DISTORTING SUBSIDIES.—The

14 United States Government shall not, as a matter of

15 official policy, condone or legitimize the use by for16 eign governments of trade distorting subsidies, in17 cluding development subsidies, that cause material

18 injury to industries in the United States.’’.

19 (b) It is the sense of the Congress that the President

20 review carefully the provisions on antidumping contained

21 in the Draft Final Act Embodying the Results of the Uru22 guay Round of Multilateral Trade Negotiations proposed

23 by the Director-General of the General Agreement on Tar24 iffs and Trade on December 21, 1991, and to seek those

25 changes in such provisions that are necessary to maintain

26 and to strengthen the effectiveness of United States anti-
44

HR 2528 IH

1 dumping laws, including, but not limited to, changes pro2 posed by the United States in December 1992 and any

3 changes needed to clarify the continuing right to cumulate

4 and cross-cumulate imports under investigation.

5 TITLE IV—OTHER MISCELLANEOUS

6 AMENDMENTS

7 SEC. 401. RESTRAINT OF U.S. TRADE OR COMMERCE.

8 Section 402 of the Foreign Trade Antitrust Improve9 ment Act of 1982, as amended (15 U.S.C. 6a), is amended

10 by adding at the end thereof the following: ‘‘Sections 1

11 to 7 of this title shall apply to export trade or export com12 merce with a foreign nation, whether or not there is direct

13 harm to consumers by reducing output or raising prices,

14 if such conduct restrains U.S. export trade or export com15 merce with said foreign nation, or any other foreign na16 tion.’’.

17 SEC. 402. AUTHORITY TO IMPOSE TARIFFS ON COUNTRIES

18 REFUSING COSTS OF JOINT DEFENSE ASSIST19 ANCE.

20 Section 310 of the Trade Act of 1974 (19 U.S.C.

21 2420) is amended by adding to the end thereof the follow22 ing new section:
45

HR 2528 IH

1 ‘‘SEC. 310A. AUTHORITY TO IMPOSE TARIFFS ON COUN2 TRIES REFUSING COSTS OF JOINT DEFENSE

3 ASSISTANCE.

4 ‘‘(a) IN GENERAL.—The President shall have the au5 thority to impose a system of tariff surcharges on articles

6 imported into the United States, that are the growth or

7 product of any country provided defense assistance by the

8 United States, so as to offset in whole or in part the cost

9 of such assistance, if such country:

10 ‘‘(1) has refused and is able to contribute in an

11 equal, or proportional, share for the payment of its

12 defense assistance;

13 ‘‘(2) is party to an agreement with the Govern14 ment of the United States providing for such defense

15 assistance; and

16 ‘‘(3) has been determined to be a country to

17 which action may be taken against under Section

18 301 of the Trade Act of 1974 (19 U.S.C. 2411) and

19 such determination has occurred within four cal20 endar years from the date in which the President

21 initiates action under this paragraph.

22 The President may proclaim the imposition of such a sys23 tem for such period of time as he deems appropriate.

24 ‘‘(b) SYSTEM OF SURCHARGES.—A system of tariff

25 surcharges imposed under the authority of paragraph (a)

26 shall:
46

HR 2528 IH

1 ‘‘(1) be designed so as to recover, during the

2 period in which it is in effect, the cost of defense as3 sistance, as determined by the Secretary of Defense,

4 provided with respect to any country meeting the re5 quirements of paragraph (a); and

6 ‘‘(2) provide, as nearly as practicable, for pro7 portionally uniform surcharge increases (including,

8 but not limited to, the imposition of a surcharge on

9 articles that would, but for this Act, be duty-free) on

10 all articles that are the growth or product of such

11 countries.

12 ‘‘(c) COLLECTION.—The Secretary of the Treasury

13 shall take such action as may be necessary or appropriate

14 to collect all surcharges imposed under any system of tar15 iff surcharges proclaimed under the authority of para16 graph (a).

17 ‘‘(d) DEFINITION.—For the purposes of this section,

18 the term ‘defense assistance’ means all costs of stationing

19 United States military personnel, equipment, and weapons

20 systems in a particular country or geographic area for the

21 defense of that country or that country’s interest, includ22 ing, but not limited to, the costs of provisioning, housing

23 and other personnel support; necessary related improve24 ments to lands and structures; fuel for, and the mainte-
47

HR 2528 IH

1 nance of, such equipment and weapons systems; and any

2 related activity of service.’’.

3 SEC. 403. AMENDMENT OF SECTION 337 OF THE TARIFF ACT

4 OF 1930.

5 (a) Section 337(b) of the Tariff Act of 1930 is

6 amended—

7 (1) by striking ‘‘; TIME LIMITS’’ in the head8 ing;

9 (2) in paragraph (1), by striking ‘‘The Commis10 sion shall conclude any such investigation’’ and all

11 that follows through the end period and inserting

12 the following: ‘‘The Commission shall conclude any

13 such investigation and make its determination under

14 this section at the earliest practicable time after the

15 date of publication of notice of such investigation.

16 To promote expeditious adjudication, the Commis17 sion shall, within 30 days of the initiation of an in18 vestigation, establish a target date for its final deter19 mination.’’; and

20 (3) by striking the fifth sentence in paragraph

21 (3).

22 (b) DETERMINATION; REVIEW.—Section 337(c) of

23 such Act is amended—
48

HR 2528 IH

1 (1) by striking ‘‘a settlement agreement’’ in the

2 first sentence and inserting ‘‘an agreement between

3 the parties’’;

4 (2) by striking ‘‘subsection (d) or (e)’’ in the

5 second sentence and inserting ‘‘subsection (d), (e),

6 or (f) (and each declaration under subsection (o))’’;

7 and

8 (3) by striking ‘‘(f), or (g)’’ in the fourth sen9 tence and inserting ‘‘(f), (g), or (o)’’.

10 (c) EXCLUSION OF ARTICLES FROM ENTRY.—Sec11 tion 337(d) of such Act is amended by inserting after the

12 first sentence the following new sentence: ‘‘No article shall

13 be excluded from entry where the Commission determines

14 that the owner, importer, or consignee of the article has

15 established a sufficient counterclaim directly related to the

16 unfair methods or acts determined by the Commission to

17 exist.’’.

18 (d) ENTRY UNDER BOND.—Section 337(e) of such

19 Act is amended—

20 (1) in the last sentence of paragraph (1), by

21 striking ‘‘determined by the Commission’’ and all

22 that follows through the end period and inserting:

23 ‘‘prescribed by the Secretary in an amount deter24 mined by the Commission to be sufficient to protect

25 the complainant from any injury. If the Commission
49

HR 2528 IH

1 later determines that the respondent has violated the

2 provisions of this section, the bond may be forfeited

3 to the complainant.’’;

4 (2) by adding at the end of paragraph (2), the

5 following new sentence: ‘‘If the Commission later de6 termines that the respondent has not violated the

7 provisions of this section, the bond may be forfeited

8 to the respondent.’’; and

9 (3) by adding at the end thereof the following

10 new paragraph:

11 ‘‘(4) The Commission may prescribe the terms

12 and conditions under which bonds may be forfeited

13 under paragraphs (1) and (2).’’.

14 (e) CEASE AND DESIST ORDERS.—Section 337(f)(1)

15 of such Act is amended—

16 (1) by inserting after the first sentence the fol17 lowing new sentence: ‘‘A permanent cease and desist

18 order shall not be issued if the Commission deter19 mines that the owner, importer, or consignees of the

20 article has established a sufficient counterclaim di21 rectly related to the unfair methods or acts deter22 mined by the Commission to exist.’’; and

23 (2) by adding at the end thereof the following:

24 ‘‘If a temporary cease and desist order is issued in

25 addition to, or, in lieu of, an exclusion order under
50

HR 2528 IH

1 subsection (e), the Commission may require the com2 plainant to post a bond as a prerequisite to the issu3 ance of an order under this subsection. If the Com4 mission later determines that the respondent has not

5 violated the provisions of this section, the bond may

6 be forfeited to the respondent. The Commission may

7 prescribe the terms and conditions under which

8 bonds may be forfeited under this paragraph.’’.

9 (f) CONDITIONS APPLICABLE FOR GENERAL EXCLU10 SION ORDERS.—Section 337(g) of such Act is amended

11 by adding at the end thereof the following new paragraph:

12 ‘‘(3) The authority of the Commission to issue

13 an exclusion from entry of articles shall be limited

14 to persons determined by the Commission to be vio15 lating this section unless the Commission determines

16 that—

17 ‘‘(A) A general exclusion from entry of ar18 ticles is necessary to prevent circumvention of

19 an exclusion from entry limited to such persons;

20 or

21 ‘‘(B) there is a pattern of violation of this

22 section and it is difficult to identify the persons

23 responsible.’’.

24 (g) ENTRY UNDER BOND AFTER REFERRAL TO

25 PRESIDENT.—Section 337(j)(3) of such Act is amended
51

HR 2528 IH

1 by striking ‘‘shall be entitled to entry under bond’’ and

2 all that follows through the end period and inserting

3 ‘‘shall, until such determination becomes final, be entitled

4 to entry under bond prescribed by the Secretary in an

5 amount determined by the Commission to be sufficient to

6 protect the complainant from injury. If the determination

7 becomes final, the bond may be forfeited to the complain8 ant. The Commission may prescribe the terms and condi9 tions under which bonds may be forfeited under this para10 graph.’’.

11 (h) DECLARATORY RELIEF.—Section 337 of such

12 Act is amended by adding at the end thereof the following

13 new subsection:

14 ‘‘(o) COMPLAINT FOR DECLARATORY RELIEF BY

15 OWNER, IMPORTER, OR CONSIGNEE.—In a case of actual

16 controversy as to the existence of unfair methods of com17 petition and unfair acts described in subsection (a), upon

18 the filing of a complaint for declaratory relief under oath

19 by the owner, importer, or consignee of an imported article

20 (or part thereof), the Commission may declare the rights

21 and other legal relations of the parties, whether or not

22 further relief is or could be sought. A declaration made

23 under this subsection shall have the force and effect of

24 a final determination of the Commission and shall be

25 reviewable as such. In the case of unfair acts involving
52

HR 2528 IH

1 the validity of patents as described in subsection

2 (a)(1)(B), such a declaration shall be only for the purpose

3 of determining whether there is a violation of this section

4 and shall not have the effect of claim or issue preclusion.’’.

5 (i) EFFECTIVE DATE.—The amendments made by

6 this section apply to complaints filed and investigations

7 initiated under section 337 of the Tariff Act of 1930 (19

8 U.S.C. 1337) after the date of the enactment of this Act.

9 SEC. 404. AMENDMENT OF TITLE 28, UNITED STATES CODE.

10 (a) IN GENERAL.—Chapter 111 of title 28, United

11 States Code, is amended by adding at the end thereof the

12 following new section:

13 ‘‘§ 1659. Stay of certain actions pending disposition of

14 related proceeding before the United

15 States International Trade Commission

16 ‘‘(a) STAY.—In a civil action involving parties that

17 are also parties to a proceeding before the United States

18 International Trade Commission pursuant to section 337

19 of the Tariff Act of 1930 (19 U.S.C. 1337), at the request

20 of a party that is a respondent in the proceeding before

21 the Commission (other than a respondent to a counter22 claim in a proceeding for declaratory relief), a district

23 court shall stay, until the determination of the Commis24 sion becomes final, proceedings in the civil action with re-
53

HR 2528 IH

1 spect to any claim that involves the same issues involved

2 in the proceeding before the Commission.

3 ‘‘(b) USE OF COMMISSION RECORD.—After dissolu4 tion of a stay under subsection (a), portions of the record

5 of the proceeding before the United States International

6 Trade Commission that bear on issues in a civil action

7 shall be admissible in the civil action, subject to such pro8 tective order as the district court determines necessary

9 and to the extent permitted under the Federal Rules of

10 Evidence and the Federal Rules of Civil Procedure.’’.

11 (b) CLERICAL AMENDMENT.—The chapter analysis

12 for chapter 111 of title 23, United States Code, is amend13 ed by adding at the end of the following new item:

‘‘1659. Stay of certain actions pending disposition of related proceedings before

the United States Internal Trade Commission.’’.

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

15 this section apply to complaints filed and investigations

16 initiated under section 337 of the Tariff Act of 1930 (19

17 U.S.C. 1337) after the date of the enactment of this Act.

18 SEC. 405. INTERNATIONAL PROTECTION OF PATENT

19 RIGHTS.

20 (a) Section 182 of the Trade Act of 1974 (19 U.S.C.

21 2242) is amended—

22 (1) in subsection (a)(1)—

23 (A) by striking ‘‘or’’ at the end of subpara24 graph (A),
54

HR 2528 IH

1 (B) by striking ‘‘and’’ at the end of sub2 paragraph (B) and inserting ‘‘or’’, and

3 (C) by inserting after subparagraph (B)

4 the following new subparagraph:

5 ‘‘(C) deny adequate substantive standards,

6 and’’;

7 (2) in subsection (b)(1)(A)—

8 (A) by striking ‘‘or’’ at the end of clause

9 (i),

10 (B) by inserting ‘‘or’’ at the end of clause

11 (ii), and

12 (C) by inserting after clause (ii) the follow13 ing new clause:

14 ‘‘(iii) deny adequate substantive

15 standards,’’;

16 (3) by adding at the end of subsection (d), the

17 following new paragraph:

18 ‘‘(4) A foreign country denies adequate sub19 stantive standards if the country enforces or permits

20 procedures under its patent approval system that re21 sult in, among other practices—

22 ‘‘(A) patent applications being subject to

23 pre-grant opposition,

24 ‘‘(B) extended deferral (beyond 3 years) of

25 patent examination,
55

HR 2528 IH

1 ‘‘(C) an inordinately long period of time

2 for patent application approval,

3 ‘‘(D) an inordinately short patent term

4 measured either from the date of grant or from

5 the date of filing,

6 ‘‘(E) an inordinate delay in obtaining judi7 cial review or unavailability of judicial review

8 for patent applications that are denied, or

9 ‘‘(F) unnecessarily narrow interpretations

10 of patent claims by the authorities which deter11 mine patent validity and infringement.’’; and

12 (4) by adding at the end of subsection (e) the

13 following new sentence: ‘‘Such publication shall in14 clude information with respect to any act, policy, or

15 practice identified under subsection (a) and informa16 tion with respect to any action taken (or the reasons

17 for not taking action) to eliminate such act, policy,

18 or practice.’’.

19 SEC. 406. COOPERATIVE PRODUCTIVITY.

20 (a) TERMINOLOGY.—The National Cooperative Re21 search Act of 1984 (15 U.S.C. 4301, et seq.) is amended

22 by striking the term ‘‘joint research and development ven23 ture’’ each place it appears and inserting in lieu thereof

24 ‘‘joint research, development, or production venture’’;
56

HR 2528 IH

1 (b) DEFINITION.—Section 2(a)(6) of the National

2 Cooperative Research Act of 1984 (15 U.S.C. 4301(a)(6))

3 is amended—

4 (1) in subparagraph (D) by striking ‘‘or’’,

5 (2) in subparagraph (E)—

6 (A) by striking ‘‘(E)’’ and inserting ‘‘(F)’’,

7 and

8 (B) by striking ‘‘and (D)’’ and inserting

9 ‘‘(D), and (E)’’;

10 (3) by inserting after subparagraph (D) the fol11 lowing:

12 ‘‘(E) the production of any product, proc13 ess, or service in a jointly owned or operated fa14 cility, or’’; and

15 (4) in the matter following subparagraph (F),

16 as so redesignated, by inserting ‘‘development, or

17 production,’’, after ‘‘the conducting of research,’’.

18 (c) EXCLUSIONS.—Section 2(b) of the National Co19 operative Research Act of 1984 (15 U.S.C. 4301(b)) is

20 amended—

21 (1) in paragraph (1) by striking ‘‘conduct the

22 research and development that is’’ and inserting

23 ‘‘carry out’’;

24 (2) in paragraph (2)—
57

HR 2528 IH

1 (A) by striking ‘‘or marketing’’ the first

2 place it appears and inserting ‘‘, marketing, or

3 distribution’’;

4 (B) by striking ‘‘or marketing of’’ and in5 serting ‘‘, marketing, or distribution of any

6 product, process, service, or’’;

7 (C) by striking ‘‘such as patents and trade

8 secrets,’’; and

9 (D) by inserting ‘‘(including patents and

10 trade secrets)’’ after ‘‘proprietary information’’;

11 and

12 (3) in paragraph (3) by striking ‘‘other research

13 and development activities’’ and inserting ‘‘any other

14 joint research, development, or production venture

15 activity’’.

16 (d) RULE OF REASON STANDARD.—Section 3 of the

17 National Cooperative Research Act of 1984 (15 U.S.C.

18 4302) is amended by adding at the end the following: ‘‘For

19 the purpose of determining a properly defined, relevant

20 market, the worldwide capacity of suppliers to provide a

21 product, process, or service shall be considered.’’.

22 (e) TECHNICAL AMENDMENTS.—

23 (1) Section 3 of the National Cooperative Re24 search Act of 1984 (15 U.S.C. 4302) is amended by

25 striking ‘‘research and development markets’’ and
58

HR 2528 IH

1 inserting in lieu thereof ‘‘research, development, or

2 product markets’’; and

3 (2) Section 6 of the National Cooperative Re4 search Act of 1984 (15 U.S.C. 4305) is amended—

5 (A) in the heading by striking ‘‘Research

6 and Developments’’, and

7 (B) in subsection (a) by inserting ‘‘(or,

8 with respect to a venture involving the produc9 tion of any product, process, of service, not

10 later than 90 days after the effective date of

11 the Cooperative Productivity and Competitive12 ness Act of 1991)’’, after ‘‘Act’’.

13 SEC. 407. UNFAIR METHODS OF COMPETITION.

14 Section 45(a) of title 15 of the United States Code

15 is amended by adding at the end thereof the following new

16 paragraph:

17 ‘‘(4) It shall be an unfair method of competition

18 for a wholesaler or retailer to sell product by tele19 phone, facsimile or means where the purchaser does

20 not see the article(s) to be purchased without identi21 fying the country of origin of the article being of22 fered and, if the product is of foreign origin, indicat23 ing whether a domestic article is also available.’’.
59

HR 2528 IH

1 SEC. 408. CORRECTION OF INVERTED TARIFF.

2 (a) NONALLOY IRON AND STEEL PIPES AND

3 TUBES.—

4 (1) The superior article description for sub5 headings 7306.30.30 and 7306.30.50 of the Har6 monized Tariff Schedule of the United States (19

7 U.S.C. 3007) is amended to read as follows: ‘‘Hav8 ing a wall thickness of 1.65 mm or more, not galva9 nized:’’.

10 (2) Subheadings 7306.30.30 and 7306.30.50

11 are redesignated as subheadings 7306.30.35 and

12 7306.30.55, respectively.

13 (3) Subheadings 7306.10.10, 7306.20.60,

14 7306.30.55 (as redesignated by subparagraph (2)),

15 and 7306.90.10 are each amended—

16 (A) by striking ‘‘1.9%’’ in column 1 Gen17 eral and inserting ‘‘4.9%’’; and

18 (B) by striking ‘‘5.5%’’ in column 2 and

19 inserting ‘‘20%’’.

20 (4) Subheadings 7306.20.20 and 7306.60.10

21 are each amended—

22 (A) by striking ‘‘0.5%’’ in column 1 Gen23 eral and inserting ‘‘4.9%’’; and

24 (B) by striking ‘‘1%’’ in column 2 and in25 serting ‘‘20%’’.
60

HR 2528 IH

1 (5) Chapter 73 is amended by inserting in nu2 merical order the following new subheading having

3 the same degree of indentation as the superior text

4 for subheading 7306.30.35 and 7306.30.55 (as re5 designated by subparagraph (2)):

‘‘ 7306.30.60 Having a wall thickness of 1.65

mm or more, galvanized ................. 6.5% Free (C, E, IL)

1.1% (CA)

21.5%

’’.

6 (b) ALLOY IRON AND STEEL PIPES AND TUBES.—

7 (1) Subheadings 7306.50.50 and 7306.90.50

8 are each amended—

9 (A) by striking ‘‘4.9%’’ in column 1 Gen10 eral and inserting ‘‘9.5%’’; and

11 (B) by striking ‘‘10%’’ in column 2 and in12 serting ‘‘28%’’.

13 (c) STAINLESS STEEL PIPES AND TUBES.—

14 (1) Subheading 7306.40.10 is amended by

15 striking ‘‘7.6%’’ in column 1 General and inserting

16 ‘‘10.1%’’.

17 (2) Subheading 7306.40.50 is amended—

18 (A) by striking ‘‘5%’’ in column 1 General

19 and inserting ‘‘10.1%’’; and

20 (B) by striking ‘‘11%’’ in column 2 and in21 serting ‘‘29%’’.

22 (d) NEGOTIATING AUTHORITY.—In the event that a

23 claim for compensation under any provision of the General

24 Agreement on Tariffs and Trade or any other trade agree-
61

HR 2528 IH

1 ment to which the United States is a party is made by

2 any Contracting Party to that agreement as a result of

3 the amendments made by this section, the United States

4 Trade Representative is authorized to negotiate such rea5 sonable compensation as may be appropriate.

6 (e) APPLICABILITY OF STAGED RATE REDUCTIONS

7 UNDER THE UNITED STATES-CANADA FREE-TRADE

8 AGREEMENT.—

9 (1) Any staged reduction under the United

10 States-Canada Free-Trade Agreement of special

11 rates of duty for Canada set forth in subheading

12 7306.30.30 applies to the corresponding special rate

13 of duty set forth in subheading 7306.30.35.

14 (2) Any staged reduction under the United

15 States-Canada Free-Trade Agreement of special

16 rates of duty for Canada set forth in subheading

17 7306.30.50 applies to the corresponding special rate

18 of duty set forth in subheading 7306.30.55.

19 (3) Any staged reduction under this United

20 States-Canada Free-Trade Agreement of special

21 rates of duty for Canada set forth in subheading

22 7306.30.55 (as redesignated by subsection (a)(2))

23 also applies to the corresponding special rate of duty

24 set forth in subheading 7306.30.60.
62

HR 2528 IH

1 (f) EFFECTIVE DATE.—Except as provided in Sec2 tion 7, the amendments made by Sections 2, 3 and 4, shall

3 apply with respect to goods entered, or withdrawn from

4 warehouse for consumption, beginning on—

5 (1) the date on which the President enters into

6 a multilateral trade agreement negotiated through

7 the Uruguay Round under the General Agreement

8 on Tariffs and Trade, or

9 (2) January 1, 1994.

10 (g) WAIVER.—In the event that—

11 (1) negotiations on market access and tariffs in

12 the General Agreement on Tariffs and Trade provide

13 for a tariff rate elimination schedule on steel prod14 ucts that will remove the tariff rate inversion on cer15 tain pipe and tube products; and

16 (2) the President or the United States Trade

17 Representative certifies in writing to the committee

18 on Ways and Means of the House of Representatives

19 and the Committee on Finance of the Senate that

20 such schedule will eliminate such tariff inversion; the

21 provisions of this section shall not take effect.

22 SEC. 409. HORTICULTURAL STUDY.

23 (a) The United States Trade Representatives to24 gether with the Secretary of Agriculture, Secretary of

25 Labor, and Secretary of Transportation shall prepare a
63

HR 2528 IH

1 report on the horticultural industry on the following issues

2 to be submitted to the Congress within 6 months of enact3 ment:

4 (1) nature of patent protection, enforcement

5 mechanisms and royalty collection procedures of hor6 ticultural products and identified rates of royalty

7 payments for the ten largest import sources and six

8 largest export markets at the eight digit HTS level

9 for HTS 0601, 0602, and 0603 as well as the roy10 alty payment rates for United States growers of the

11 like products;

12 (2) whether pesticides banned from use on hor13 ticultural products grown in the United States are

14 used in growing or treating horticultural products

15 imported into the United States under Chapter 6 of

16 the HTS;

17 (3) how worker rights in the countries con18 stituting the major foreign suppliers of horticultural

19 products to the United States compare to those re20 quired under United States law; and

21 (4) the extent to which air fares between the

22 major supplier countries and the United States, Eu23 rope and Japan influence the direction of flower

24 shipments from Central and South American coun25 tries.
64

HR 2528 IH

1 SEC. 410. HOME APPLIANCES.

2 (a) With respect to the following items in the Har3 monized Tariff Schedule of the United States.

4 7321.11.30—stoves or ranges (other than port5 able).

6 8418.10.00, 8418.21.00, 8418.22.00,

7 8418.29.00—refrigerators and combined refrigerator

8 freezers.

9 8450.11.00, 8450.19.00, 8450.20.00—house10 hold or laundry washing machines.

11 8451.21.00, 8451.29.00—drying machines.

12 (b) The tariff rate on imports from Mexico of such

13 products shall permanently be the Most Favored Nation

14 Rate as provided for each item in Schedule 1 of the cur15 rent Harmonized Tariff Schedule of the United States, not

16 withstanding any temporary duty status on any such item

17 that is applicable or may be applicable under the United

18 States Generalized System of Preferences.

19 (c) Notwithstanding the reference in Annex 302.2,

20 paragraph 2, of the proposed North American Free Trade

21 Agreement to ‘‘the rate of duty in effect on July 1, 1991,

22 including rates under the United States Generalized Sys23 tem of Preferences,’’ the Schedule of the United States

24 attached to Annex 302.2 shall omit reference to ‘‘G’’ for

25 those HTS items and the staging code for those items
65

HR 2528 IH

1 shall be changed to ‘‘C’’ as as to conform with the counter2 part Mexican and Canadian staging codes.

3 SEC. 411. CONCENTRATION OF IMPORTS.

4 Section 771(4)(C) of the Tariff Act of 1930 (19

5 U.S.C. 1677(4)(C)) is amended by adding at the end

6 thereof the following new sentence: ‘‘Concentration of sub7 sidized or dumped imports exists with respect to a market,

8 if the percentage of subsidized or dumped imports to con9 sumption of imports and domestically produced like prod10 ucts in such market is clearly higher than the percentage

11 is in the rest of the United States.’’.

12 TITLE V—PRIVATE ACTIONS FOR RELIEF FROM

13 CERTAIN FORMS OF ANTICOMPETITIVE

14 PRICING PRACTICES

15 SEC. 501. PRIVATE RIGHT OF ACTION FOR RELIEF FROM

16 INJURIOUS INDUSTRIAL CROSS-SUBSIDIZA17 TION AND PERSISTENT SALES BELOW FULL

18 COST OF PRODUCTION.

19 (a) Section 1(a) of the Clayton Act (15 U.S.C. 12)

20 is amended by inserting ‘‘Section 901 of the Act of Sep21 tember 8, 1916, entitled ‘An Act to raise revenue, and for

22 other purposes’ (39 Stat. 98; 15 U.S.C. 2);’’ after nineteen

23 hundred and thirteen;.

24 (b) Section 901 of the Act of September 8, 1916 (39

25 Stat. 798; 15 U.S.C. 72) is amended to read as follows:
66

HR 2528 IH

1 ‘‘SEC. 901.

2 ‘‘(a) PROHIBITION.—No person shall sell for export

3 to the United States or sell within the United States a

4 product at a price which does not permit the recovery of

5 all costs (fixed and variable) involved in developing, pro6 ducing and selling the product within a reasonable period

7 of time where such pricing practices cause material injury

8 to another producer or manufacturer the majority of sales

9 occur in the United States.

10 ‘‘(b) REASONABLE PERIOD OF TIME.—A determina11 tion on reasonable period of time will be based on the facts

12 peculiar to the product in question. However, where sales

13 are below all costs on average for more than one-third of

14 the projected life cycle of the product or for 24 months

15 there shall be a rebuttable presumption that such costs

16 do not permit the recovery of all costs within a reasonable

17 period.

18 ‘‘(c) CIVIL ACTION.—An interested party whose busi19 ness or property is materially injured by reason of impor20 tations or sales in violation of this section may bring a

21 civil action in any court of the United States having juris22 diction over the parties.

23 ‘‘(d) JURISDICTION OVER FOREIGN PRODUCERS OR

24 EXPORTERS.—A foreign manufacturer, producer, or ex25 porter which sells products, or for which products are sold

26 by another party in the United States, shall be treated
67

HR 2528 IH

1 as having appointed the District Director of the United

2 States Customs Service of the Department of the Treas3 ury for any port through which the product is commonly

4 imported as a true and lawful agent of the manufacturer,

5 producer, or exporter, upon whom may be served all lawful

6 process in any action brought under subsection (c) against

7 the manufacturer, producer, or exporter.

8 ‘‘(e) DEFENSES.—It shall be a defense to an action

9 for a defendant if the defendant was not gaining market

10 share from the plaintiff in the United States and was sell11 ing its product at or above the plaintiff’s prices.

12 ‘‘(f) RELIEF.—In an action brought under subsection

13 (c), the court, if it finds for plaintiff, shall—

14 ‘‘(1) grant damages for the injuries sustained;

15 ‘‘(2) permit recovery of costs of the action, in16 cluding reasonable attorney’s fees;

17 ‘‘(3) if the court determines that the infliction

18 of injury was intentional, award treble damages; and

19 ‘‘(4) order a prospective revision of prices or

20 grant such equitable relief as may be appropriate.

21 ‘‘(g) STANDARD OF PROOF.—The standard of proof

22 in an action brought under subsection (c) is a preponder23 ance of the evidence.

24 ‘‘(h) LIMITATION.—An action under subsection (b)

25 shall be commenced not later than 2 years after the date
68

HR 2528 IH

1 on which the cause of action accrued. For purposes of this

2 section, the cause of action accrues throughout the period

3 during which sales below full costs are occurring.

4 ‘‘(i) INTERVENTION BY THE UNITED STATES.—The

5 court shall permit the United States to intervene in any

6 action brought under subsection (c) as a matter of right.

7 The United States shall have all the rights of a party to

8 such action.’’.

9 TITLE VI—FOREIGN CAPITAL AND SECURITIES

10 MARKETS

11 SEC. 601. FOREIGN CAPITAL AND SECURITIES MARKETS

12 STUDY.

13 (a) IN GENERAL.—The Secretary of the Treasury

14 (hereafter referred to as the ‘‘Secretary’’) shall conduct

15 a study of the capital and securities markets of Japan.

16 Not later than 1 year after the date of the enactment of

17 this Act, the Secretary shall submit a report to the Con18 gress on the structure, operation, practice, and regulation

19 of Japan’s capital securities markets, and their implica20 tions for the United States.

21 (b) CONSULTATIONS.—The Secretary shall consult

22 with the Chairman of the Securities and Exchange Com23 mission, the United States Trade Representative, and

24 such other agencies or persons as the Secretary may deem

25 necessary to complete the study and report required under
69

HR 2528 IH

1 this Act. The Secretary shall also consult with representa2 tives from the domestic capital and securities markets.

3 The Secretary may consult with agencies of the Govern4 ment of Japan, Japanese exchanges, and such other Japa5 nese persons or organizations as the Secretary may deem

6 appropriate.

7 (c) DEFINITION.—For purposes of this Act the term

8 ‘‘security’’ has the same meaning as in section 3(a)(10)

9 of the Securities Exchange Act of 1934 (15 U.S.C.

10 78c(a)(10)).

Æ

HR 2528 IH——2

HR 2528 IH——3

HR 2528 IH——4