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TITLE VI—FOREIGN CAPITAL AND SECURITIES MARKETS
Sec. 601. Foreign capital and securities markets study.
TITLE I—COUNTERVAILING AND ANTIDUMPING
DUTY AMENDMENTS
SEC. 101. FINAL PAYMENT OF ANTIDUMPING AND COUN-
TERVAILING DUTIES.
(a) Section 736 of the Tariff Act of 1930 (19 U.S.C.
1673e) is amended by adding at the end thereof the fol-
lowing new subsection:
‘‘(d) FINAL PAYMENT OF DUTY.—
‘‘(1) 
ASSESSMENT
AND
COLLECTION
RE-
QUIRED.—Pursuant to the administering authority’s
direction, the United States Customs Service shall
assess and collect the antidumping duty determined
for each entry of the merchandise from the first pur-
chaser in the United States that is independent of
the exporter, manufacturer, and producer, and per-
sons defined as the exporter in section 771(13).
‘‘(2) PROHIBITION
AGAINST
ABSORPTION
OR
REIMBURSEMENT.—
‘‘(A) IN GENERAL.—Neither the exporter,
manufacturer, and producer, and persons de-
fined as the exporter in section 771(13) nor any
other person may absorb or reimburse directly
or indirectly to the first unrelated purchaser in
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the United States the antidumping duty deter-
mined for the merchandise.
‘‘(B) CERTIFICATION.—Upon collection of
the antidumping duty, the administering au-
thority through the United States Customs
Service shall obtain from the first unrelated
purchaser in the United States and the ex-
porter, manufacturer, and producer, including
any person deemed an exporter under section
771(13), written certification as to whether or
not absorption or direct or indirect reimburse-
ment of the antidumping duty determined has
occurred or will be effected in the future. Fail-
ure to file such certification will be construed as
conclusive indication of unlawful final payment
of the antidumping duty determined by a per-
son other than the first unrelated purchaser in
the United States.
‘‘(C) INVESTIGATION.—The administering
authority with the assistance of the United
States Customs Service shall investigate when-
ever reasonable grounds are present to believe
or suspect that absorption or direct or indirect
reimbursement of the antidumping duty deter-
mined has taken place.
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‘‘(D) ENFORCEMENT.—If absorption or di-
rect or indirect reimbursement of the antidump-
ing duty determined is established, then, in ad-
dition to any civil and criminal penalties that
may be appropriate, the administering authority
shall have the United States Customs Service
assess and collect from the first unrelated pur-
chaser in the United States the amount of the
antidumping duty determined that is found to
have been absorbed or reimbursed together with
interest. Notwithstanding any other provision of
law, such reliquidation will be carried out with
respect to each entry as often as absorption or
reimbursement is confirmed for that entry.
Final payment of the antidumping duty
detemined by any person other than the first
unrelated purchaser in the United States shall
not be returned.’’.
(b) Section 706 of the Tariff Act of 1930 (19 U.S.C.
1671e) is amended by adding at the end thereof the fol-
lowing new subsection:
‘‘(c) FINAL PAYMENT OF DUTY.—
‘‘(1) 
ASSESSMENT
AND
COLLECTION
RE-
QUIRED.—Pursuant to the administering authority’s
direction, the United States Customs Service shall
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assess and collect the countervailing duty determined
for each entry of the merchandise from the first pur-
chaser in the United States that is independent of
the exporter, manufacturer, and producer, and per-
sons defined as the exporter in section 771(13).
‘‘(2) PROHIBITION
AGAINST
ABSORPTION
OR
REIMBURSEMENT.—
‘‘(A) IN GENERAL.—Neither the exporter,
manufacturer, and producer, and persons de-
fined as the exporter in section 771(13) nor any
other person may absorb or reimburse directly
or indirectly to the first unrelated purchaser in
the United States the countervailing duty deter-
mined for the merchandise.
‘‘(B) CERTIFICATION.—Upon collection of
the countervailing duty, the administering au-
thority through the United States Customs
Service shall obtain from the first unrelated
purchaser in the United States and the ex-
porter, manufacturer, and producer, including
any person deemed an exporter under section
771(13), written certification as to whether or
not absorption or direct or indirect reimburse-
ment of the countervailing duty determined has
occurred or will be effected in the future. Fail-
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ure to file such certification will be construed as
a presumption of unlawful final payment of the
countervailing duty determined by a person
other than the first unrelated purchaser in the
United States.
‘‘(C) INVESTIGATION.—The administering
authority with the assistance of the United
States Customs Service shall investigate when-
ever reasonable grounds are present to believe
or suspect that absorption or direct or indirect
reimbursement of the countervailing duty deter-
mined has taken place.
‘‘(D) ENFORCEMENT.—If absorption or di-
rect or indirect reimbursement of the counter-
vailing duty determined is established, then, in
addition to any civil and criminal penalties that
may be appropriate, the administering authority
shall have the United States Customs Service
assess and collect from the first unrelated pur-
chaser in the United States the amount of the
countervailing duty determined that is found to
have been absorbed or reimbursed together with
interest. Notwithstanding any other provision of
law, such reliquidation will be carried out with
respect to each entry as often as absorption or
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reimbursement is confirmed for that entry.
Final payment of the countervailing duty deter-
mined by any person other than the first unre-
lated purchaser in the United States shall not
be returned.’’.
SEC. 102. ADMINISTRATIVE REVIEW OF DETERMINATIONS.
Section 751 of the Tariff Act of 1930 (19 U.S.C.
1675) is amended by adding at the end thereof the follow-
ing new paragraph—
‘‘(g) ANNUAL REPORT TO THE HOUSE WAYS AND
MEANS COMMITTEE
AND SENATE FINANCE COMMIT-
TEE.—By the close of February each year, the administer-
ing authority shall report to the House Ways and Means
Committee and the Senate Finance Committee the num-
ber of administrative reviews commenced in the prior cal-
endar year, the number of reviews completed during the
calendar year within eighteen months of initiation, the
number of reviews completed during the calendar year in
longer than eighteen months after initiation, and for each
review that remains incomplete at the end of the calendar
year more than eighteen months after initiation, an esti-
mated schedule for completion (including dates for pre-
liminary and final determinations).’’.
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SEC. 103. POST-INITIATION EVENTS AND RELEVANCE TO
MATERIAL INJURY DETERMINATION.
Section 771(7)(C) of the Tariff Act of 1930 (19
U.S.C. 1677(7)(C)) is amended by adding at the end
thereof the following: ‘‘Except as specified in subpara-
graph (7)(C)(i), in evaluating volume and price effects
pursuant to this subparagraph, the Commission may in
its discretion disregard developments after the filing of the
petition.’’.
SEC. 104. DETERMINATION OF MATERIAL INJURY.
(a) VOLUME OF IMPORTS.—Section 771(7)(C)(i) of
the Tariff Act of 1930 (19 U.S.C. 1677(7)(C)(i)) is
amended by adding at the end thereof the following new
sentence: ‘‘An inference shall not be made that there is
no material injury, if the volume of imports has decreased
after the initiation of an investigation under section 702
or 732.’’.
(b) PRICE COMPETITION.—Section 771(7)(C)(ii) of
such Act (19 U.S.C. 1677(7)(C)(ii)) is amended by insert-
ing immediately after subclause (II) the following flush
sentence: ‘‘For purposes of this clause, the Commission
shall compare the price at which imported merchandise is
sold to the ultimate consumer with the price at which like
products of the United States are sold to the ultimate
consumer.’’.
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ministering authority that such merchandise was not
liable for antidumping and/or countervailing duties;
the Secretary shall include in his report a summary
of allegations of non-payment and what steps, if any,
were taken to determine the magnitude of any pre-
mature liquidations.’’.
SEC. 106. THREAT OF INJURY STANDARD.
(a) Section 771(7)(F)(i) of the Tariff Act of 1930
(19 U.S.C. 1677(7)(F)(i)) is amended by adding at the
end thereof the following—
‘‘(XI) the actual and potential decline
in order backlog of the domestic industry.
‘‘(XII) for purposes of subsection (F)
the Commission shall give consideration to
monthly or quarterly trend information
through the month of the filing of the peti-
tion. Post-initiation changes in trends
should not result in a negative determina-
tion where trends to the time of filing
would support an affirmative determina-
tion.’’.
SEC. 107. ACTUAL AND POTENTIAL DECLINES IN MATERIAL
INJURY DETERMINATION.
(a) Section 771(7)(C) of the Tariff Act of 1930, as
amended (19 U.S.C. 1677(7)(C)), is amended by adding
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at the end thereof the following: ‘‘For the purposes of this
subsection, the term ‘potential decline’ means the decline
that can be reasonably deduced by comparing actual per-
formance to the performance (e.g., output, sales, etc.) that
could have been but for the economic factors (including
unfairly traded imports) which have a bearing on the state
of the industry). The term ‘potential negative effects’
means the adverse effects that can be reasonably deduced
by comparing actual performance to the performance that
could have been expected but for the economic factors (in-
cluding unfairly traded imports) which have a bearing on
the state of the industry. Where ‘actual declines’ or ‘actual
negative effects’ are sufficient to warrant an affirmative
determination, the Commission need not evaluate ‘poten-
tial declines’ or ‘potential effects’ under subsection (iii)
(I), (III) and (IV).’’.
SEC. 108. INVESTIGATION OF SALES AT LESS THAN COST
OF PRODUCTION.
(a) Section 773(b) of the Tariff Act of 1930 (19
U.S.C. 1677b(b)) is amended:
(1) by inserting ‘‘for all producers or exporter
being investigated or reviewed’’ after the phrase ‘‘at
less than the cost of producing the merchandise’’
each time it appears in paragraph (b); and
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(2) by inserting ‘‘by any foreign producer or ex-
porter’’ after ‘‘have been made’’ in subparagraph
(b)(1).
SEC. 109. CUMULATION.
(a) CUMULATION.—Section 771(7)(C)(iv) of the Tar-
iff Act of 1930 (19 U.S.C. 1677 (7)(C)(iv)) is amended
by adding at the end thereof the following new subclause:
‘‘(III) LOOK-BACK.—For purposes of
clauses (i) and (ii) and subparagraph (F),
if a petition is filed under this title with re-
spect to a product or like product which
was the basis of a final affirmative deter-
mination during the 3 years preceding the
filing of such petition, the Commission
shall consider as part of its investigation of
the new petition the previous injurious
dumping or subsidization as an important
factor in determining the industry’s vulner-
ability to continued or renewed material in-
jury.’’.
(b) 
CONCENTRATION
OF
IMPORTS.—Section
771(4)(C) of such Act (19 U.S.C. 1677(4)(C)) is amended
by adding at the end thereof the following new sentence:
‘‘Concentration of subsidized or dumped imports exists
with respect to a market, if the percentage of subsidized
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or dumped imports to consumption of imports and domes-
tically produced like products in such market is clearly
higher than the percentage is in the rest of the United
States.’’.
SEC. 110. DUAL PRICING.
Section 773(a)(4) of the Tariff Act of 1930 (19
U.S.C. 1677b(a)(4)) is amended by adding at the end the
following new sentence: ‘‘No allowance shall be made to
account for differences in input costs that are based on
whether the end product made from the input is sold in
the home market or exported.’’.
SEC. 111. CLARIFICATION OF ADJUSTMENTS TO FOREIGN
MARKET VALUE.
(a) Section 773(a) of the Tariff Act of 1930, as
amended (19 U.S.C. 1677b(a)), is amended by inserting
at the end of paragraph (a) the following: ‘‘No adjustment
shall be made to foreign market value because of adjust-
ments made to United States price pursuant to section
1677a (d) or (e) of title 19, United States Code.’’.
SEC. 112. INTEREST ON POST FINDINGS.
(a) Section 737 of the Tariff Act of 1930, as amend-
ed (19 U.S.C. 1677g), is amended by changing subpara-
graph ‘‘(b)’’ to read ‘‘(c)’’ and inserting a new subpara-
graph (b)—
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‘‘(b) SPECIAL RULE FOR INTEREST ON POST FIND-
ING ENTRIES.—For antidumping findings made under the
Antidumping Act, 1921, all entries made after the date
of the finding which were entered under bond and remain
unliquidated as of the date of enactment of this legislation
shall be assessed interest from the date of entry to the
date of liquidation, the bond being treated as a zero
cash deposit for purposes of determining over or
underpayment.’’.
SEC. 113. COMPENSATION AWARDS.
Section 736 of the Tariff Act of 1930 (19 U.S.C.
1673e) is amended by adding at the end thereof the fol-
lowing new section:
‘‘SEC. 736A. COMPENSATION AWARDS.
‘‘(a) DEFINITIONS.—For the purposes of this section:
‘‘(1) the term ‘affected domestic producer’
means any manufacturer or producer within the do-
mestic industry with respect to which an affirmative
injury determination was made in connection with
an antidumping order;
‘‘(2) the term ‘antidumping order’ means an
antidumping duty order published under section 736
of the Tariff Act of 1930;
‘‘(3) the term ‘Commission’ means the United
States International Trade Commission;
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‘‘(4) the term ‘dumped merchandise’ means
merchandise with respect to which an antidumping
duty is imposed under an antidumping order; and
‘‘(5) the term ‘dumping period’ means the pe-
riod of time during which foreign merchandise sub-
ject to an antidumping order was sold, or offered for
sale, in the United States at less than fair value and
applied by the Commission for purposes of making
a determination under section 735(b) of the Tariff
Act of 1930 with respect to the domestic industry
that produced a like or directly competitive product.
‘‘(b) APPLICATION PROCESS.—The Commission shall
prescribe procedures governing when and the form and
manner in which affected domestic producers may apply
to the Commission for compensation under this section.
‘‘(c) DETERMINATION OF COMPENSATION.—
‘‘(1) Upon receiving a timely application under
subsection (b), the Commission shall determine if
the applicant—
‘‘(A) is an affected domestic producer, and
‘‘(B) suffered any degree of economic in-
jury during the dumping period as a result of
the sale, or offer for sale, in the United States
of the dumped merchandise.
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This determination shall be completed by the 90th
calendar day from receipt of the application under
subsection (b).
‘‘(2) If the Commission makes an affirmative
determination under paragraphs (1) (A) and (B), it
shall, within sixty calendar days from such deter-
mination—
‘‘(A) determine the monetary value of the
economic injury that was suffered by the appli-
cant; and
‘‘(B) issue to the applicant a compensation
award stating the amount of money which is
payable to the applicant from the appropriate
special compensation account established under
subsection (d).
Compensation award payable under this section shall
be provided to the affected domestic producers only
so long as monies are available within the appro-
priate special compensation account.
‘‘(d) SPECIAL COMPENSATION ACCOUNTS.—
‘‘(1) On the date an antidumping duty order
takes effect, the Secretary of the Treasury (hereafter
referred to as the Secretary in this section) shall es-
tablish in the Treasury of the United States a spe-
cial compensation account with respect to the order.
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‘‘(2) The Secretary shall deposit into a special
compensation account one-half of all antidumping
duties that are collected under the antidumping
order with respect to which the account was estab-
lished.
‘‘(3) The monies in a special compensation ac-
count shall be available for payment of compensation
awards issued under subsection (c)(2) in conjunction
with the antidumping order with respect to which
the account was established.
‘‘(4) The Secretary shall by regulation prescribe
the time and manner in which payment of com-
pensation awards from special compensation ac-
counts will be made. Additional compensation pay-
ments can be made in future years if additional anti-
dumping duties are deposited in the account.
‘‘(5) After a period of seven years from the date
the special compensation account is established, the
Secretary shall terminate the account and upon ter-
mination of said account all antidumping duties col-
lected under the antidumping order with respect to
which the account was established shall be deposited
into the general fund of the Treasury as miscellane-
ous receipts.’’.
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SEC. 114. DIVERSIONARY INPUT DUMPING.
(a) IN GENERAL.—Subtitle D of title VII of the Tar-
iff Act of 1930 (19 U.S.C. 167 et seq.) is amended by
inserting after section 771B the following new section:
‘‘SEC. 771C. DIVERSIONARY INPUT DUMPING.
‘‘For purposes of this title, diversionary input dump-
ing occurs when—
‘‘(1) a producer or manufacturer incorporates
into merchandise under investigation a component or
a material which is the subject of—
‘‘(A) an antidumping duty order issued
under section 736, or
‘‘(B) an international arrangement or
agreement described in section 734, if such ar-
rangement or agreement was entered into after
an affirmative preliminary determination was
made under section 733(b), and
‘‘(2) the producer or manufacturer under inves-
tigation purchased the material or component at a
price which is less than the foreign market value
(determined under section 773(e)).’’.
(b) FOREIGN VALUE.—
(1) IN
GENERAL.—Paragraph (2) of section
773(a) of such act (19 U.S.C. 1677b(A)(2)) is
amended by inserting ‘‘(or, if the administering au-
thority finds there is a reasonable basis to believe
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that diversionary input dumping is occurring which
has a significant effect on the cost of producing the
merchandise under investigation)’’ after ‘‘paragraph
(1)(A)’’.
(2) SPECIAL RULE FOR DIVERSIONARY INPUT
DUMPING.—Section 773(e) of such Act (19 U.S.C.
1677b(e)) is amended by adding at the end thereof
the following new paragraph:
‘‘(5) DIVERSIONARY INPUT DUMPING.—If the
administering authority determines that diversionary
input dumping is occurring and has a significant ef-
fect on the cost of producing the merchandise under
investigation, the administering authority shall, in
calculating the cost of the material or component
under paragraph (1)(A), include the amount of the
diversionary input dumping determined to exist with
respect to such material or component. For purposes
of the preceding sentence, the amount of the diver-
sionary input dumping is the difference, if any, by
which
‘‘(A) the foreign market value of the input
material or component involved, as calculated
under this title, exceeds
‘‘(B) the purchase price of the input mate-
rial or component paid by the producer or man-
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ufacturer of the merchandise under investiga-
tion.’’.
(c) PROCEDURES OF INITIATING AN ANTIDUMPING
INVESTIGATION.—Section 732(a) of such Act (19 U.S.C.
1673a(A)) is amended by adding at the end thereof the
following new paragraph:
‘‘(3) CASES
INVOLVING
DIVERSIONARY
INPUT
DUMPING.—The administering authority shall inves-
tigate whether diversionary input dumping is occur-
ring whenever the administering authority has rea-
sonable grounds to believe or suspect that—
‘‘(A) diversionary input dumping (as de-
fined in section 771(c)) is occurring,
‘‘(B) such diversionary input dumping has
a significant effect on the cost of producing the
merchandise under investigation, and
‘‘(C) official government or other reliable,
generally accepted trade statistics indicate that
subsequent to the imposition of an antidumping
duty order or entry into force of an inter-
national agreement relating to imports into the
United States of the material or component in
question, shipments to the United States of the
merchandise under investigation have increased
(either in quantity or market share).’’.
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(d) TIMETABLE FOR PRELIMINARY DETERMINATION
BY ADMINISTERING AUTHORITY.—Section 733(b)(1) of
such Act (19 U.S.C. 1673b(b)(1)) is amended by adding
at the end thereof the following new subparagraph:
‘‘(D) IF
DIVERSIONARY
INPUT
DUMPING
INVOLVED.—If, as part of a petition filed under
section 732(b), or an investigation commenced
under section 732(a), the administering author-
ity has reasonable grounds to believe or suspect
that diversionary input dumping is occurring,
the administering authority may treat the inves-
tigation as an extraordinarily complicated case
under subsection (c) and may extend the period
of time for making a preliminary determination
accordingly.’’.
(e) CLERICAL AMENDMENT.—The table of contents
for subtitle VII of the Tariff Act of 1930 is amended by
inserting after the item relating to section 771B the fol-
lowing new item:
‘‘Sec. 771C. Diversionary input dumping.’’.
SEC. 115. UPSTREAM SUBSIDIES.
(a) DEFINITION.—Section 771(A) of the Tariff Act
of 1930 is amended in its last sentence by inserting after
‘‘subsidy is provided’’ the words ‘‘or authorized’’.
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(b) DETERMINATION OF COMPETITIVE BENEFIT IN
UPSTREAM SUBSIDIES.—Section 771A(b)(1) of the Tariff
Act of 1930 (19 U.S.C. 1677–1(b)(1)) is amended:
(1) by striking ‘‘Except’’ and inserting ‘‘(A)
Except,’’
(2) by striking ‘‘another seller’’ and inserting
‘‘an unsubsidized seller in’’ subparagraph (A), as re-
designated by paragraph (1), and
(3) by adding at the end thereof the following
new paragraph—
‘‘(B) For purposes of subparagraph (A),
determination of the price the manufacturer or
producer would otherwise pay for the product in
obtaining it from an unsubsidized seller shall be
based on the following factors in the order in
which such factors are listed:
‘‘(i) the price paid by the manufac-
turer or producer to an unsubsidized seller
located in the same country as the seller of
the input product,
‘‘(ii) the price paid by the manufac-
turer or producer to an unsubsidized seller
located in a country other than the country
of the input product,
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‘‘(iii) the price paid (including any de-
livery fees) to an unsubsidized producer lo-
cated in the same country as the seller of
the input products, or
‘‘(iv) the price (including delivery
fees) paid to an unsubsidized producer lo-
cated in a country other than the country
of the seller of the input product.’’.
SEC. 116. EXPORTATION FROM AN INTERMEDIATE COUN-
TRY.
(a) Section 773(b) of the Tariff Act of 1930 (19
U.S.C. 1677b) is amended by adding at the end thereof:
‘‘In situations described under subsection (f), allegations
of sales below cost shall be evaluated against the cost of
production of the actual manufacturer plus all charges as-
sessed or costs incurred by other parties, including the
reseller.’’.
(b) Section 773(c) of the Tariff Act of 1930 (19
U.S.C. 1677b(c)) is amended by adding at the end thereof
the following new paragraph:
‘‘(5) INTERMEDIATE COUNTRY RESALES.—Not-
withstanding anything to the contrary in subsection
(f), if the merchandise under investigation is—
‘‘(A) produced in a nonmarket economy
country;
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‘‘(B) resold by a reseller in an intermediate
country; and
‘‘(C) resold by such reseller at prices that
represent less than the cost of producing the
merchandise in question (including costs of pro-
duction for the nonmarket economy country de-
termined pursuant to this subsection);
than the administering authority shall determine the
foreign market value of the merchandise on the basis
of the value of the factors of production utilized in
producing the merchandise in the country of produc-
tion as determined pursuant to this subsection, to
which shall be added an amount for general ex-
penses and profit of the producer and reseller, plus
the cost of containers, covering, and other expenses,
as required by subsection (e).’’.
SEC. 117. AUTHORITY TO EXAMINE CUSTOMS VALUATION.
(a) Subsection (b)(1) of section 777 of the Tariff Act
of 1930 is amended by adding:
(1) ‘‘either’’ after ‘‘Customs Service who is’’;
and
(2) ‘‘or is reviewing the propriety of the cus-
toms valuation on which customs duties were cal-
culated for a deduction from United States Price
(19 U.S.C. 1677a) pursuant to a request from the
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administering authority’’ after ‘‘fraud under this
title’’.
(b) Section 772 of the Tariff Act of 1930 (19 U.S.C.
1677a) is amended by adding a new subsection at the end
thereof:
‘‘(f) REFERRAL TO CUSTOMS.—The administering
authority shall refer to Customs for expedited consider-
ation claims that the import duties required to be de-
ducted from United States under subsection (d)(2)(A) are
understated by reason of possible understatement of cus-
toms valuation. Where Customs determines that customs
valuation on the merchandise in question is undervalued,
the administering authority shall deduct the import duties
identified by customs as properly owed for purposes of
making its final determination.’’.
SEC. 118. STUDY FOR SIMPLIFYING INITIATION OF COUN-
TERVAILING AND ANTIDUMPING DUTY AC-
TIONS.
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Commerce and the
International Trade Commission shall transmit to the
Congress a study, including recommendations, regarding
the modification of standards applicable to the initiation
of countervailing and antidumping duty action in order to
make petitioning for such initiations less costly and more
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accessible for domestic petitioners. In conducting such
study, the Secretary and the Commission shall give due
consideration to the obligations of the United States under
international trade agreements.
SEC. 119. SPECIAL RULE—RELATIVE UNITED STATES CON-
TENT.
Section 732(b) of the Tariff Act of 1930, as amended
(19 U.S.C. 1673a(b)), is amended by adding the following
new subsection at the end thereof:
‘‘(3) 
SPECIAL
RULE—RELATIVE
UNITED
STATES CONTENT.—
‘‘(A) In special circumstances described in
subsection (b)(3)(B), in determining whether
the petition is filed on behalf of a domestic in-
dustry, account shall be taken of the relative
United States content of:
‘‘(i) the imported merchandise which
is the subject of the petition; and
‘‘(ii) the like product produced in the
United States by the petitioner and other
United States producers supporting the
petition.
‘‘(B) Whenever the cost of materials and
the direct cost of processing or assembling the
merchandise which is the subject of the petition
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is to a significant degree of United States ori-
gin (at least 2 percent of the cost of manufac-
ture) and roughly approximates or exceeds the
United States content of the product of the pe-
titioner at the time of the filing of the petition,
the administering authority shall determine
whether the petition is filed on behalf of a do-
mestic industry by measuring the value of Unit-
ed States content (excluding GS & A but in-
cluding research and development costs) for
both domestic production or assembly and the
imported product and by disregarding the provi-
sions of section 1677(4)(B) of title 19, United
States Code.’’.
SEC. 120. REIMBURSEMENT OF ANTIDUMPING DUTIES.
Section 772(d)(2) of the Tariff Act of 1930, as
amended (19 U.S.C. 1677a(d)(2)) is amended by adding
a new subparagraph at the end thereof—
‘‘(C) the amount of any antidumping duty
which the producer, exporter, or reseller;
‘‘(i) pays or will pay, directly or indi-
rectly, on behalf of the importer, whether
related or unrelated; or
‘‘(ii) reimburses to the importer,
whether related or unrelated, either before
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or after assessment, and either directly or
indirectly through any means, including
but not limited to transferring merchandise
to a related importer at prices below cost
of production plus normal profit. For pur-
poses of this subsection, nothing in the
definition of ‘exporter’ in section 1677(13)
of title 19, United States Code shall pre-
clude application of this provision to ‘ex-
porter’s sales price’ calculations. Further,
transfer prices between related parties at
less than cost of production plus normal
profit are presumed to constitute indirect
reimbursement absent an affirmative show-
ing by the importer to the contrary.’’.
SEC. 121. DETERMINATION OF UNITED STATES PRICE.
Section 772(e)(1) of the Tariff Act of 1930 (19
U.S.C. 1677a(e)(1)) is amended by inserting ‘‘and reason-
able profits from selling in the United States’’ after the
phrase ‘‘under consideration’’.
SEC. 122. RELIQUIDATION OF CERTAIN ENTRIES.
(a) Section 500 of the Tariff Act of 1930 (19 U.S.C.
1500) is amended by adding the following new subsection:
‘‘(f) reliquidate any entries that should have been
subject to an antidumping or countervailing duty order or
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finding but which were erroneously liquidated either by ac-
tion of the foreign producer, exporter or importer or by
action of the Customs Service.’’.
(b) Section 516A of the Tariff Act of 1930 (19
U.S.C. 516A) is amended by adding at the end thereof
the following new section:
‘‘SEC. 516B. REQUEST FOR ACCOUNTING.
‘‘(a) REQUEST
FOR ACCOUNTING.—The Secretary
shall, upon written request by an interested party who
supported the petition, provide access to the record of
identified importers under a protective order drawn in con-
formity to the provisions of section 777 of this Act, as
to all entry papers on entries made during the twelve
months prior to the request or as to all documents con-
nected with liquidations made during the twelve months
prior to the request.
‘‘(b) DEFINITION.—As used in this section, the term
‘interested party who supported a petition’ shall refer to
companies, workers or associations referred to in section
771(9) (C), (D) or (E) who were a petitioner or filed a
letter in support of the petition with the administering au-
thority and submitted written views during the course of
the original investigation. The terms ‘Secretary’ and ‘ad-
ministering authority’ have the same meanings as pro-
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vided in section 516A(f) (1) and (4) of this Act (19 U.S.C.
1516a(f) (1) and (4)).
‘‘(c) REFERRAL
TO
THE SECRETARY
OR ADMIN-
ISTERING AUTHORITY.—
‘‘(1) If an interested party who supported a pe-
tition discovers information in the entry papers or
the liquidation documents that raise questions as to
the proper administration of the antidumping or
countervailing duty finding or order, such informa-
tion shall be notified to the Secretary.
‘‘(2) The Secretary shall have such information
reviewed expeditiously and corrective action, if war-
ranted, taken, including pursuant to section 500(f)
of this Act. If the information notified pertains to
incorrect assessment instructions from the admin-
istering authority or to coverage of particular prod-
ucts under outstanding antidumping or countervail-
ing duty fines or orders, the Secretary shall transmit
such information to the administering authority for
expedited resolution of coverage. The results of all
such reviews shall be communicated in writing to the
interested party who supported a petition.
‘‘(d) CIVIL ACTION.—Within thirty days of receipt of
the written communication, the interested party who sup-
ported a petition may commence a civil action in the
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United States Court of International Trade for a review
of the determination made by the Secretary or administer-
ing authority.
‘‘(e) RECORD FOR REVIEW.—The documents notified
to the Secretary, such documents from the original inves-
tigation as the parties may designate and documents per-
taining to liquidation instructions from the administering
authority and final determinations by the administering
authority relevant to liquidation amounts shall constitute
the record for review.
‘‘(f) STANDARD
OF REVIEW.—Whether the chal-
lenged determination is supported by substantial evidence
or is otherwise in accordance with law.
‘‘(g) RECOVERY OF COSTS.—Where the determina-
tion of the Secretary or the administering authority is re-
versed or modified, the interested party who supported the
petition may recover reasonable attorney fees for the court
litigation.’’.
SEC. 123. ADMINISTRATIVE REVIEWS.
Section 751(a)(2) of the Tariff Act of 1930 (19
U.S.C. 1675(a)(2)) is amended by adding at the end
thereof the following new subsection:
‘‘(3) REQUESTS
FOR
REVIEWS
BY
DOMESTIC
PRODUCERS.—The administering authority shall
conduct a review of any foreign producer identified
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by a domestic interested party within the meaning of
sections 1677(9) (C)–(G) of title 19, United States
Code or, where the domestic interested party does
not know the identity of individual foreign produc-
ers, the foreign producers supplying identified im-
porters or purchaser of the imported product.’’.
SEC. 124. USE OF PROTECTIVE ORDER INFORMATION.
Section 777(c)(1)(A) of the Tariff Act of 1930 (19
U.S.C. 1677f(c)(1)(A)) is amended by adding to the end
thereof the following: ‘‘Information released under protec-
tive order during an investigation or administrative review
by the administering authority may be maintained under
protective order during the pendency of the proceeding for
the purpose of identifying potential factual discrepancies
between periods investigated or to allege relevant issues
in subsequent administrative reviews including the exist-
ence of a fictitious market (19 U.S.C. 167b(a)(5)) or sales
below cost of production (19 U.S.C. 1677b(b))’’.
SEC. 125. FURTHER MANUFACTURED GOODS.
Section 772(e)(3) of the Tariff Act of 1930 (19
U.S.C. 1677a(e)(3)) is amended by adding at the end
thereof the following: ‘‘In deducting profits from assembly
or manufacture, profits may be allocated between value
added in the United States and parts or products imported
as long as the profits attributable to the United States
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value added is not below the level earned by unrelated
manufacturers in the United States for the same class of
merchandise. Notwithstanding the provisions of this sub-
paragraph, if the transfer price of the product or (where
more than one product or item subject to investigation or
review) products is less than 1 percent of the resale value
of the assembled or further manufactured product, United
States prices shall be based on transfer price without re-
gard to the adjustments identified in subparagraph (3).’’.
SEC. 126. USE OF CONSTRUCTED VALUE.
Section 772(a)(2) of the Tariff Act of 1930 (19
U.S.C. 1677b(a)(2)) is amended by adding at the end
thereof the following sentence: ‘‘Absent a finding of a ficti-
tious market under subparagraph (a)(1) or (a)(5) or com-
pliance with the provisions of subsection (b), constructed
value shall not be used to determine foreign market value
where the home market or third country markets account
for at least 10 percent by volume of exports to the United
States.’’.
SEC. 127. PATENT EQUITY AND BANNED SUBSTANCES.
(a) Section 337(a)(1)(B) of the Tariff Act of 1930
(19 U.S.C. 1337(a)(1)(B)) is amended by—
(1) striking ‘‘or’’ at the end of subparagraph
(B)(i);
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(2) striking the period at the end of subpara-
graph (B)(ii) and inserting ‘‘;’’ in lieu thereof; and
(3) adding the following at the end thereof:
‘‘(iii) have been grown, made, produced,
processed, or mined pursuant to a valid patent
or patents where patent royalties paid are lower
than those paid by agricultural, horticultural, or
manufacturing operations in the United States;
or
‘‘(iv) have been grown or treated with pes-
ticides or other substances banned for use in
the United States.’’.
SEC. 128. CIRCUMVENTION TIMELINES AND PROCEDURAL
REQUIREMENTS.
(a) CIRCUMVENTION TIMELINES AND PROCEDURAL
REQUIREMENTS.—Section 781(a) of the Tariff Act of
1930 (19 U.S.C. 1677j(a)) is amended by adding at the
end thereof the following:
‘‘(3) CIRCUMVENTION TIMELINES AND PROCE-
DURAL REQUIREMENTS.—
‘‘(A) Upon the filing of a petition contain-
ing allegations of circumvention of antidumping
and countervailing duty orders, the administer-
ing authority will determine within 20 days
whether to initiate an investigation.
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policies, and practices of Japan, including, but not limited
to—
(1) the acts, policies, and practices utilized in
the Japanese automotive distribution system;
(2) the existence of anticompetitive activities by
or among private firms or groups of firms, including
so-called families of companies or Keiretsus; such
practice may include, inter alia, pricing below cost to
keep U.S. parts suppliers from obtaining contracts;
(3) exclusionary business practices; and
(4) testing requirements and other government
regulations;
that affect the access to the Japanese market of motor
vehicles and motor vehicle parts produced by manufactur-
ers, other than those that are Japanese owned or con-
trolled, that are located in the United States (hereafter
in this section referred to as ‘‘United States manufactur-
ers’’).
(b) TRADE AGREEMENT NEGOTIATIONS.—During
the period of the investigation required under subsection
(a), the United States Trade Representative shall enter
into negotiations with the Government of Japan for the
purpose of concluding a trade agreement that—
(1) eliminates or modifies those aspects of the
acts, policies, and practices referred to in subsection
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(a) that act as barriers to the Japanese market for
exports of motor vehicle and motor vehicle parts pro-
duced by United States manufacturers;
(2) provides for the prompt implementation and
enforcement by the Government of Japan of its com-
mitments under the Structural Impediments Initia-
tive (SII), the Market-Oriented Sector Specific
(MOSS) agreements, the Market-Oriented Coopera-
tion Plan (MOCP), and the Action Plan announced
at the Tokyo Summit in January 1992 with respect
to trade in, and the purchase of, motor vehicles and
motor vehicle parts;
(3) establishes longer term goals for the pur-
chase by Japanese motor vehicle parts and acces-
sories from United States manufacturers through
immediate parts sourcing arrangements and ‘‘de-
sign-in’’ projects aimed at new model development;
(4) establishes procedures for the exchange of
information between the appropriate agencies of the
United States and Japanese Governments that will
permit the accurate assessment of the bilateral trade
in motor vehicle parts, particularly with respect to
the extent of the purchase of motor vehicle parts
produced by United States manufacturers—
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(A) for use by Japanese sources in the
Japanese market; and
(B) for use in the United States market by
manufacturers of motor vehicles, which are
Japanese owned or controlled and located with-
in the United States; and
(5) establishes such private sector or govern-
ment-sponsored review boards to resolve expedi-
tiously challenges to purchasing decisions by Japa-
nese motor vehicle manufacturers as to compliance
with identified specifications or competitiveness on
price or other terms.
The United States Trade Representative should seek the
support of other interested foreign governments in obtain-
ing a trade agreement under this subsection.
(c) REPORT IF NEGOTIATIONS UNSUCCESSFUL.—If
the negotiation undertaken pursuant to subsection (b) are
not successful, the United States Trade Representative
shall submit to the Congress a report that—
(1) states in detail the reasons why the negotia-
tions were not successful; and
(2) sets forth those actions that will be taken,
or will be proposed for congressional consideration,
to achieve the objectives sought in the negotiations.
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Such report shall be submitted no later than the date by
which the determinations under section 304 of the Trade
Act of 1974 are required with respect to the investigation
initiated under subsection (a).
SEC. 202. EXTENSION OF ‘‘SUPER 301’’ AUTHORITY.
Section 310(a)(1) of the Trade Act of 1974 (19
U.S.C. 2420(a)(1) is amended by striking out ‘‘calendar
year 1989, and also the date in calendar year 1990,’’ and
inserting ‘‘each of calendar years 1994, 1995, 1996, 1997,
and 1998’’.
TITLE III—INTERNATIONAL TRADE
NEGOTIATIONS
SEC. 301. PRINCIPAL TRADE NEGOTIATING OBJECTIVES OF
THE UNITED STATES CONCERNING DISPUTE
SETTLEMENT MECHANISMS WITH RESPECT
TO UNITED STATES COUNTERVAILING DUTY
AND ANTIDUMPING ACTIONS.
Section 1101(b)(1) of the Omnibus Trade and Com-
petitiveness Act of 1988 (19 U.S.C. 2901(b)(1)) is amend-
ed—
(1) by striking ‘‘The principal’’ and inserting
‘‘(A) Subject to subparagraph (B), the principal’’;
(2) by redesignating subparagraphs (A) and
(B) as clauses (A) (i) and (ii), respectively; and
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(3) by adding at the end the following new sub-
paragraph:
‘‘(B) With respect to review of countervailing
duty and antidumping duty actions taken by a sig-
natory to the General Agreement on Tariffs and
Trade (GATT) under its national laws, the dispute
settlement mechanisms and procedures described in
subparagraph (A) shall not allow—
‘‘(i) the review of issues that were not
properly presented to the investigating authori-
ties for resolution during the administrative
proceeding conducted under such laws;
‘‘(ii) the review of issues before the conclu-
sion of the administrative proceeding conducted
under such laws;
‘‘(iii) the conducting of an independent de
novo investigation of the circumstances leading
to such actions; and
‘‘(iv) where a signatory to the GATT pro-
vides for the administrative or judicial review,
by an independent body, of factual issues with
respect to countervailing duty and antidumping
actions, the extension of the review beyond
whether the laws and regulations of that signa-
tory, and the interpretation of such laws and
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regulations by that signatory, are consistent
with the General Agreement on Tariffs and
Trade.
In reaching the principal negotiation objectives de-
scribed in subparagraph (A), all necessary actions
shall be taken to promote strong and effective limi-
tations on the scope of and standards applicable to
any review of countervailing duty or antidumping
duty actions under the dispute settlement mecha-
nisms and procedures described in such subpara-
graph.’’.
SEC. 302. GLOBAL STRUCTURAL EXCESS CAPACITY.
Section 1101(b) (19 U.S.C. 2901(b)) is amended by
adding a new subsection at the end thereof:
‘‘(17) GLOBAL
STRUCTURAL
EXCESS
CAPAC-
ITY.—The principal negotiating objective of the
United States regarding situations of global struc-
tural excess capacity is to negotiate multilateral
rules to permit rapid realignment of capacity to de-
mand.’’.
SEC. 303. APPLICATION OF AMENDMENTS TO MEXICO AND
CANADA.
The amendments made by this Act apply with respect
to goods imported into the United States from Mexico and
Canada.
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SEC. 304. INTERNATIONAL TRADE AGREEMENTS ON ANTI-
DUMPING 
AND 
TRADE 
DISTORTING 
SUB-
SIDIES.
(a) Section 1101(b) of the Omnibus Trade and Com-
petitiveness Act of 1988 (19 U.S.C. 2901(b)) is amended
by adding at the end thereof the following:
‘‘(18) ANTIDUMPING.—The President shall not
enter into any international trade agreement on
antidumping requiring changes in United States
antidumping laws which would reduce the effective-
ness of such laws as a remedy against injurious
dumped imports.
‘‘(19) TRADE
DISTORTING
SUBSIDIES.—The
United States Government shall not, as a matter of
official policy, condone or legitimize the use by for-
eign governments of trade distorting subsidies, in-
cluding development subsidies, that cause material
injury to industries in the United States.’’.
(b) It is the sense of the Congress that the President
review carefully the provisions on antidumping contained
in the Draft Final Act Embodying the Results of the Uru-
guay Round of Multilateral Trade Negotiations proposed
by the Director-General of the General Agreement on Tar-
iffs and Trade on December 21, 1991, and to seek those
changes in such provisions that are necessary to maintain
and to strengthen the effectiveness of United States anti-
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dumping laws, including, but not limited to, changes pro-
posed by the United States in December 1992 and any
changes needed to clarify the continuing right to cumulate
and cross-cumulate imports under investigation.
TITLE IV—OTHER MISCELLANEOUS
AMENDMENTS
SEC. 401. RESTRAINT OF U.S. TRADE OR COMMERCE.
Section 402 of the Foreign Trade Antitrust Improve-
ment Act of 1982, as amended (15 U.S.C. 6a), is amended
by adding at the end thereof the following: ‘‘Sections 1
to 7 of this title shall apply to export trade or export com-
merce with a foreign nation, whether or not there is direct
harm to consumers by reducing output or raising prices,
if such conduct restrains U.S. export trade or export com-
merce with said foreign nation, or any other foreign na-
tion.’’.
SEC. 402. AUTHORITY TO IMPOSE TARIFFS ON COUNTRIES
REFUSING COSTS OF JOINT DEFENSE ASSIST-
ANCE.
Section 310 of the Trade Act of 1974 (19 U.S.C.
2420) is amended by adding to the end thereof the follow-
ing new section:
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‘‘SEC. 310A. AUTHORITY TO IMPOSE TARIFFS ON COUN-
TRIES REFUSING COSTS OF JOINT DEFENSE
ASSISTANCE.
‘‘(a) IN GENERAL.—The President shall have the au-
thority to impose a system of tariff surcharges on articles
imported into the United States, that are the growth or
product of any country provided defense assistance by the
United States, so as to offset in whole or in part the cost
of such assistance, if such country:
‘‘(1) has refused and is able to contribute in an
equal, or proportional, share for the payment of its
defense assistance;
‘‘(2) is party to an agreement with the Govern-
ment of the United States providing for such defense
assistance; and
‘‘(3) has been determined to be a country to
which action may be taken against under Section
301 of the Trade Act of 1974 (19 U.S.C. 2411) and
such determination has occurred within four cal-
endar years from the date in which the President
initiates action under this paragraph.
The President may proclaim the imposition of such a sys-
tem for such period of time as he deems appropriate.
‘‘(b) SYSTEM OF SURCHARGES.—A system of tariff
surcharges imposed under the authority of paragraph (a)
shall:
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‘‘(1) be designed so as to recover, during the
period in which it is in effect, the cost of defense as-
sistance, as determined by the Secretary of Defense,
provided with respect to any country meeting the re-
quirements of paragraph (a); and
‘‘(2) provide, as nearly as practicable, for pro-
portionally uniform surcharge increases (including,
but not limited to, the imposition of a surcharge on
articles that would, but for this Act, be duty-free) on
all articles that are the growth or product of such
countries.
‘‘(c) COLLECTION.—The Secretary of the Treasury
shall take such action as may be necessary or appropriate
to collect all surcharges imposed under any system of tar-
iff surcharges proclaimed under the authority of para-
graph (a).
‘‘(d) DEFINITION.—For the purposes of this section,
the term ‘defense assistance’ means all costs of stationing
United States military personnel, equipment, and weapons
systems in a particular country or geographic area for the
defense of that country or that country’s interest, includ-
ing, but not limited to, the costs of provisioning, housing
and other personnel support; necessary related improve-
ments to lands and structures; fuel for, and the mainte-
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nance of, such equipment and weapons systems; and any
related activity of service.’’.
SEC. 403. AMENDMENT OF SECTION 337 OF THE TARIFF ACT
OF 1930.
(a) Section 337(b) of the Tariff Act of 1930 is
amended—
(1) by striking ‘‘; TIME LIMITS’’ in the head-
ing;
(2) in paragraph (1), by striking ‘‘The Commis-
sion shall conclude any such investigation’’ and all
that follows through the end period and inserting
the following: ‘‘The Commission shall conclude any
such investigation and make its determination under
this section at the earliest practicable time after the
date of publication of notice of such investigation.
To promote expeditious adjudication, the Commis-
sion shall, within 30 days of the initiation of an in-
vestigation, establish a target date for its final deter-
mination.’’; and
(3) by striking the fifth sentence in paragraph
(3).
(b) DETERMINATION; REVIEW.—Section 337(c) of
such Act is amended—
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(1) by striking ‘‘a settlement agreement’’ in the
first sentence and inserting ‘‘an agreement between
the parties’’;
(2) by striking ‘‘subsection (d) or (e)’’ in the
second sentence and inserting ‘‘subsection (d), (e),
or (f) (and each declaration under subsection (o))’’;
and
(3) by striking ‘‘(f), or (g)’’ in the fourth sen-
tence and inserting ‘‘(f), (g), or (o)’’.
(c) EXCLUSION OF ARTICLES FROM ENTRY.—Sec-
tion 337(d) of such Act is amended by inserting after the
first sentence the following new sentence: ‘‘No article shall
be excluded from entry where the Commission determines
that the owner, importer, or consignee of the article has
established a sufficient counterclaim directly related to the
unfair methods or acts determined by the Commission to
exist.’’.
(d) ENTRY UNDER BOND.—Section 337(e) of such
Act is amended—
(1) in the last sentence of paragraph (1), by
striking ‘‘determined by the Commission’’ and all
that follows through the end period and inserting:
‘‘prescribed by the Secretary in an amount deter-
mined by the Commission to be sufficient to protect
the complainant from any injury. If the Commission
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by striking ‘‘shall be entitled to entry under bond’’ and
all that follows through the end period and inserting
‘‘shall, until such determination becomes final, be entitled
to entry under bond prescribed by the Secretary in an
amount determined by the Commission to be sufficient to
protect the complainant from injury. If the determination
becomes final, the bond may be forfeited to the complain-
ant. The Commission may prescribe the terms and condi-
tions under which bonds may be forfeited under this para-
graph.’’.
(h) DECLARATORY RELIEF.—Section 337 of such
Act is amended by adding at the end thereof the following
new subsection:
‘‘(o) COMPLAINT
FOR DECLARATORY RELIEF
BY
OWNER, IMPORTER, OR CONSIGNEE.—In a case of actual
controversy as to the existence of unfair methods of com-
petition and unfair acts described in subsection (a), upon
the filing of a complaint for declaratory relief under oath
by the owner, importer, or consignee of an imported article
(or part thereof), the Commission may declare the rights
and other legal relations of the parties, whether or not
further relief is or could be sought. A declaration made
under this subsection shall have the force and effect of
a final determination of the Commission and shall be
reviewable as such. In the case of unfair acts involving
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the validity of patents as described in subsection
(a)(1)(B), such a declaration shall be only for the purpose
of determining whether there is a violation of this section
and shall not have the effect of claim or issue preclusion.’’.
(i) EFFECTIVE DATE.—The amendments made by
this section apply to complaints filed and investigations
initiated under section 337 of the Tariff Act of 1930 (19
U.S.C. 1337) after the date of the enactment of this Act.
SEC. 404. AMENDMENT OF TITLE 28, UNITED STATES CODE.
(a) IN GENERAL.—Chapter 111 of title 28, United
States Code, is amended by adding at the end thereof the
following new section:
‘‘§ 1659. Stay of certain actions pending disposition of
related proceeding before the United
States International Trade Commission
‘‘(a) STAY.—In a civil action involving parties that
are also parties to a proceeding before the United States
International Trade Commission pursuant to section 337
of the Tariff Act of 1930 (19 U.S.C. 1337), at the request
of a party that is a respondent in the proceeding before
the Commission (other than a respondent to a counter-
claim in a proceeding for declaratory relief), a district
court shall stay, until the determination of the Commis-
sion becomes final, proceedings in the civil action with re-
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spect to any claim that involves the same issues involved
in the proceeding before the Commission.
‘‘(b) USE OF COMMISSION RECORD.—After dissolu-
tion of a stay under subsection (a), portions of the record
of the proceeding before the United States International
Trade Commission that bear on issues in a civil action
shall be admissible in the civil action, subject to such pro-
tective order as the district court determines necessary
and to the extent permitted under the Federal Rules of
Evidence and the Federal Rules of Civil Procedure.’’.
(b) CLERICAL AMENDMENT.—The chapter analysis
for chapter 111 of title 23, United States Code, is amend-
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.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section apply to complaints filed and investigations
initiated under section 337 of the Tariff Act of 1930 (19
U.S.C. 1337) after the date of the enactment of this Act.
SEC. 
405. 
INTERNATIONAL 
PROTECTION 
OF 
PATENT
RIGHTS.
(a) Section 182 of the Trade Act of 1974 (19 U.S.C.
2242) is amended—
(1) in subsection (a)(1)—
(A) by striking ‘‘or’’ at the end of subpara-
graph (A),
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(B) by striking ‘‘and’’ at the end of sub-
paragraph (B) and inserting ‘‘or’’, and
(C) by inserting after subparagraph (B)
the following new subparagraph:
‘‘(C) deny adequate substantive standards,
and’’;
(2) in subsection (b)(1)(A)—
(A) by striking ‘‘or’’ at the end of clause
(i),
(B) by inserting ‘‘or’’ at the end of clause
(ii), and
(C) by inserting after clause (ii) the follow-
ing new clause:
‘‘(iii) 
deny 
adequate 
substantive
standards,’’;
(3) by adding at the end of subsection (d), the
following new paragraph:
‘‘(4) A foreign country denies adequate sub-
stantive standards if the country enforces or permits
procedures under its patent approval system that re-
sult in, among other practices—
‘‘(A) patent applications being subject to
pre-grant opposition,
‘‘(B) extended deferral (beyond 3 years) of
patent examination,
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‘‘(C) an inordinately long period of time
for patent application approval,
‘‘(D) an inordinately short patent term
measured either from the date of grant or from
the date of filing,
‘‘(E) an inordinate delay in obtaining judi-
cial review or unavailability of judicial review
for patent applications that are denied, or
‘‘(F) unnecessarily narrow interpretations
of patent claims by the authorities which deter-
mine patent validity and infringement.’’; and
(4) by adding at the end of subsection (e) the
following new sentence: ‘‘Such publication shall in-
clude information with respect to any act, policy, or
practice identified under subsection (a) and informa-
tion with respect to any action taken (or the reasons
for not taking action) to eliminate such act, policy,
or practice.’’.
SEC. 406. COOPERATIVE PRODUCTIVITY.
(a) TERMINOLOGY.—The National Cooperative Re-
search Act of 1984 (15 U.S.C. 4301, et seq.) is amended
by striking the term ‘‘joint research and development ven-
ture’’ each place it appears and inserting in lieu thereof
‘‘joint research, development, or production venture’’;
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(b) DEFINITION.—Section 2(a)(6) of the National
Cooperative Research Act of 1984 (15 U.S.C. 4301(a)(6))
is amended—
(1) in subparagraph (D) by striking ‘‘or’’,
(2) in subparagraph (E)—
(A) by striking ‘‘(E)’’ and inserting ‘‘(F)’’,
and
(B) by striking ‘‘and (D)’’ and inserting
‘‘(D), and (E)’’;
(3) by inserting after subparagraph (D) the fol-
lowing:
‘‘(E) the production of any product, proc-
ess, or service in a jointly owned or operated fa-
cility, or’’; and
(4) in the matter following subparagraph (F),
as so redesignated, by inserting ‘‘development, or
production,’’, after ‘‘the conducting of research,’’.
(c) EXCLUSIONS.—Section 2(b) of the National Co-
operative Research Act of 1984 (15 U.S.C. 4301(b)) is
amended—
(1) in paragraph (1) by striking ‘‘conduct the
research and development that is’’ and inserting
‘‘carry out’’;
(2) in paragraph (2)—