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Sec. 102. Calculation of exporter’s sales price when value added after importa-
tion.
Sec. 103. Compensation awards.
Sec. 104. Diversionary input dumping.
Sec. 105. Upstream subsidies.
Sec. 106. Sales at less than cost of production.
Sec. 107. Prevention of circumvention.
Sec. 108. Standing.
Sec. 109. Selling, general and administrative expenses, and profit.
Sec. 110. Reviews upon information or request or passage of time.
Sec. 111. Currency conversion.
Sec. 112. Sampling and averaging.
Sec. 113. Market viability.
Sec. 114. Negligible imports.
Sec. 115. Captive production.
Sec. 116. Duty as a coast.
TITLE II—INTELLECTUAL PROPERTY AMENDMENTS
Sec. 201. International intellectual property protection objectives.
Sec. 202. Fast track authority for New Free Trade Agreements.
Sec. 203. Special 301.
Sec. 204. Amendment of section 337 of the Traffic Act of 1930.
Sec. 205. Generalized system of preferences.
Sec. 206. Model Intellectual Property Agreement.
Sec. 207. Efforts by United States Diplomats.
Sec. 208. Private sector involvement in international dispute settlement.
Sec. 209. Incentives to improve foreign intellectual property protection.
Sec. 210. Intellectual property rights border enforcement maintenance.
TITLE III—MARKET OPENING MEASURES
Sec. 301. Action by the President to open Foreign Markets.
Sec. 302. Amendments to section 301.
Sec. 303. Specialty steel product tariffs.
TITLE 
I—COUNTERVAILING 
AND 
ANTIDUMPING 
DUTY
AMENDMENTS
5SEC. 101. SALES IN HOME MARKET FOR EXPORT TO THE
UNITED STATES.
Section 485 of the Tariff Act of 1930, as amended
(19 U.S.C. 1485), is amended—
(1) by adding to the end of section (a) the fol-
lowing new paragraph:
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‘‘(5) Whether the merchandise is subject to any
outstanding antidumping or countervailing duty
order, and whether the importer disclosed to the
manufacturer or producer of the merchandise in the
country of exportation that the destination of the
merchandise was the United States.’’; and
(2) by adding at the end of the section the fol-
lowing new paragraph:
‘‘(h) DISCLOSURE IN ANTIDUMPING CASES.—Every
importer of record making entry under the provisions of
section 1484 of this title with respect to merchandise that
is subject to an antidumping duty order under the provi-
sions of section 1673 of this title, its agents or principals,
or any party related thereto within the meaning of section
1677(13) of this title, shall disclose to the manufacturer
or producer of such merchandise that the merchandise has
been purchased for exportation to the United States, un-
less, at the time of purchase, the importer of record, its
agents or principals, or any party related thereto within
the meaning of section 1677(13) of this title, did not in-
tend to export the merchandise to the United States, did
not import the merchandise for a period of at least six
months from the date of purchase, and does not regularly
or customarily engage in a pattern of importation of such
merchandise. Failure by an importer to disclose the fact
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that merchandise subject to an antidumping duty order
was purchased for exportation to the United States or to
provide the certification required under paragraph (a)(5)
of this section, shall be subject to prosecution under sec-
tion 592 of this title.’’.
SEC. 102. CALCULATION OF EXPORTER’S SALES PRICE
WHEN VALUE ADDED AFTER IMPORTATION.
Section 772 of the Tariff Act of 1930, as amended
(19 U.S.C. 1677a(c)), is amended by—
(1) by striking the period at the end of para-
graph (e)(3) and inserting in lieu thereof the follow-
ing: ‘‘, unless the administering authority determines
it is appropriate to use an alternate form of export-
er’s sales price pursuant to paragraph (f).’’; and
(2) by inserting at the end of paragraph (e), as
amended by this Act, the following:
‘‘(f) ALTERNATE BASES
FOR EXPORTER’S SALES
PRICE.—Whenever there is any increase in the value of
imported merchandise, resulting from a process of manu-
facture or assembly, after importation and before its sale
to a person who is not the exporter of the merchandise,
to the extent that the increase in value substantially ex-
ceeds the value of the imported merchandise when resold
without any additional manufacture or assembly, the ‘ex-
porter’s sales price’ shall be—
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‘‘(1) the price at which such or similar mer-
chandise is sold or agreed to be sold in the United
States, before or after the time of importation, to a
person who is not the exporter of the merchandise,
with due allowance if merchandise described in para-
graph (B) or (C) of section 1677(16) of this title is
used in determining exporter’s sales price, and ad-
justed under paragraphs (d) and (e) of this sub-
section, or
‘‘(2) the transaction value of the merchandise,
as determined under section 1401a(b) and adjusted
under paragraph (d) of this section, where the ad-
ministering authority is satisfied that such trans-
action value is less than or equal to the arm’s length
price to a person who is not the exporter of the mer-
chandise.’’.
SEC. 103. 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 sec-
tion—
‘‘(1) the term ‘affected domestic producer’
means any manufacturer, producer, or worker rep-
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resentative that was a petitioner or interested party
in support of the petition with respect to which an
affirmative injury determination was made in con-
nection with an antidumping duty finding or order
or countervailing duty order;
‘‘(2) the term ‘antidumping order’ means an
antidumping duty order published under section 736
of the Tariff Act of 1930 or an antidumping finding
published under the Antidumping Act, 1921;
‘‘(3) the term ‘countervailing duty order’ means
a countervailing duty order published under sections
303 or 706 of the Tariff Act of 1930;
‘‘(4) the term ‘Commission’ means the United
States International Trade Commission;
‘‘(5) the term ‘Commissioner’ means the Com-
missioner of the United States Customs Service;
‘‘(6) the term ‘dumped merchandise’ means
merchandise with respect to which an antidumping
duty is imposed under an antidumping order or find-
ing; and
‘‘(7) the term ‘subsidized merchandise’ means
merchandise with respect to which a countervailing
duty is imposed under a countervailing duty order.
‘‘(b) APPLICATION PROCESS.—The Commissioner of
the Customs Service shall prescribe procedures governing
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when and the form and manner in which compensation
awards shall be made annually, at the latest within thirty
days of the release of the Annual Report on the Status
of the Antidumping / Countervailing Duty Program.
‘‘(c) DETERMINATION OF COMPENSATION.—
‘‘(1) The Commission shall forward to the Com-
missioner within sixty days of the effective date of
this section or within sixty days of the issuance of
an antidumping or countervailing duty order after
the effective date of this section a list of petitioners
and those companies that indicated support of the
petition by letter or through questionnaire response
as well as a confidential tabulation of the dollar
value of shipments for each petitioner or company in
support of the petition during the last year covered
by the original Commission investigation. The con-
fidentiality of the data submitted by the Commission
to the Commissioner shall be maintained. Where no
injury test was required, the Commissioner shall
within one hundred and eighty days of the publica-
tion of a countervailing duty order after the effective
date of this section obtain information from the
named petitioners for the most recent calendar year
shipment values.
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‘‘(2) The Commissioner shall publish in the
Federal Register at least thirty days prior to the is-
suance of payments a notice of intention to distrib-
ute compensation and the list of companies eligible
based on the list obtained from the Commission.
‘‘(3) The Commissioner shall distribute all
funds (including all interest earned) from assess-
ments received in the completed fiscal year, from the
appropriate special compensation account established
under subsection (d), to petitioners and those in
support according to the relative shipment values
supplied by the Commission pursuant to subpara-
graph (1).
Upon the date an antidumping duty order takes ef-
fect the Commissioner.
‘‘(4) Compensation awards payable under this
section shall be provided to the affected domestic
producers to be used solely for the purpose of fund-
ing a pension plan, fund, or program maintained or
established for the purpose of providing—
‘‘(A) medical, surgical, or hospital care
benefits;
‘‘(B) benefits in the event of sickness, acci-
dent, disability, or death;
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‘‘(C) benefits in the event of plant closure
or layoff; or
‘‘(D) benefits from a nonqualified pension
plan that provides benefits in the event of a ter-
mination of a qualified pension plan;
up to an amount equal to the amount needed to
maintain sufficient cash and marketable securities in
the plan to pay projected benefits and reasonable
plan administration costs for twenty-four months
commencing from the date of receipt of the com-
pensation award. If sufficient cash and marketable
securities exist to fund the plan, fund, or program
as required under this section then the compensation
award may be used as deemed appropriate by the in-
dividual domestic producer.
‘‘(5) If a compensation award payable under
paragraph (3) cannot be received by an eligible do-
mestic producer due to such pension plan, fund, or
program being already fully funded then such mon-
ies may be used by the domestic producer for re-
search and development expenses, as approved by
the Secretary.
‘‘(d) SPECIAL COMPENSATION ACCOUNTS.—
‘‘(1) Within fourteen days of the effective date
of this provision for outstanding antidumping duty
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orders and findings, or for outstanding countervail-
ing duty orders, or within fourteen days of the date
an antidumping or countervailing duty order takes
effect, the Secretary of the Treasury (hereafter re-
ferred 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.
‘‘(2) The Secretary shall deposit into a special
compensation account all antidumping or counter-
vailing duties, including interest on such duties, that
are collected under the antidumping order or finding
or countervailing duty order with respect to which
the account was established.
‘‘(3) The monies in a special compensation ac-
count shall be available for payment of compensation
awards issued under section (c) to the extent of ac-
tual assessments, including interest.
‘‘(4) The Commissioner shall by regulation pre-
scribe the time and manner in which payment of
compensation awards from special compensation ac-
counts will be made.
‘‘(5) The compensation awards and special com-
pensation accounts will remain in existence until all
duties relating to an order which has been termi-
nated are liquidated and all funds distributed to the
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domestic parties entitled to receipts of same under
this section. Any amounts unable to be distributed
within ninety days of the time of the final distribu-
tion of all duties of a terminated or shall be turned
over to the general Treasury.’’.
SEC. 104. DIVERSIONARY INPUT DUMPING.
(a) IN GENERAL.—Subtitle D of title VII of the Tar-
iff Act of 1930 (19 U.S.C. 1677 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,
‘‘(B) a finding issued under the Antidump-
ing Act, 1921, or
‘‘(C) 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
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‘‘(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
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
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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-
ufacturer of the merchandise under investiga-
tion.’’.
(c) PROCEDURES FOR 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 com-
mence an antidumping investigation whenever it has
reasonable 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
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‘‘(C) subsequent to the imposition of an
antidumping duty order or entry into force of
an international agreement relating to imports
into the United States of the material or com-
ponent in question, shipments to the United
States of the merchandise under investigation
have increased (either in quantity or market
share).’’.
(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
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ducer to an unsubsidized seller located in
the same country as the seller of the input
product,
‘‘(ii) the price paid (including any de-
livery fees) by the manufacturer or pro-
ducer to an unsubsidized seller located in
a country other than the country of the
seller of the input product,
‘‘(iii) information on prices (including
all delivery fees) from an unsubsidized sell-
er of the input product located in the same
country as the subsidized seller of the
input product, or
‘‘(iv) information on prices (including
all delivery fees) from an unsubsidized sell-
er of the input product located in a coun-
try other than the country of the sub-
sidized seller of the input product.’’.
SEC. 106. SALES AT LESS THAN COST OF PRODUCTION.
Section 773(b) of the Tariff Act of 1930 (19 U.S.C.
1677b(b)) is amended by striking all that follows ‘‘made
at less than the cost of producing the merchandise.’’ and
inserting in lieu thereof the following: ‘‘In the determina-
tion of foreign market value, the administering authority
shall disregard sales made at less than cost of production
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if such sales have been made in substantial quantities over
the period of investigation or review and at prices which
do not permit the recovery of all costs within a reasonable
period of time in the ordinary course of trade. Whenever
sales are disregarded by virtue of being made at less than
the cost of production and the remaining sales, made at
not less than the cost of productions, constitute less than
30 percent of the volume of sales of the merchandise under
consideration the administering authority shall employ the
constructed value of the merchandise to determine its for-
eign market value. For purposes of this subsection the fol-
lowing provisions shall apply:
‘‘(1) Sales below cost shall be deemed by the
administering authority to have been made in sub-
stantial quantities if—
‘‘(A) the weighted average selling price for
the period of investigation is less than the
weighted average cost of production for the
merchandise in question for the period, or
‘‘(B) the volume of sales found to be below
cost represents not less than 20 percent of the
volume of such merchandise sold.
‘‘(2) In investigations under section 1673, the
administering authority shall calculate the cost of
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producing the merchandise for the period of inves-
tigation.
‘‘(3) In administrative reviews under section
1675, the administering authority shall calculate the
cost of producing the merchandise based on the
weighted average cost for the period or periods dur-
ing the review that the administering authority de-
termines to be reasonable for comparison to prices.
‘‘(4) Prices determined to be below cost at the
time of sale shall not be considered to provide for
the recovery of costs within the reasonable period of
time (not to exceed the period of investigation or re-
view), unless the administering authority determines
that such prices are above cost for the period for
which costs were calculated for purposes of subpara-
graphs (2) and (3) of this section.
‘‘(5) For the purposes of determining cost of
productions and constructed value, the administering
authority shall examine the allocation of non-recur-
ring costs to current and future production. As long
as the allocations are reasonably reflective of the
costs associated with the production and sale of the
product under consideration, any allocations consist-
ent with the generally accepted accounting principles
of the exporting country will normally be accepted.
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The administering authority shall confirm that all
non-recurring costs from the period prior to the pe-
riod of investigation that benefit current production
have been appropriately allocated to current and fu-
ture production.
‘‘(6) For the purposes of determining cost of
production and constructed value, unless already re-
flected in the cost allocations, appropriate adjust-
ments shall be made for circumstances in which cer-
tain non-recurring costs during the period of inves-
tigation are affected by start-up operations. The ad-
justment made for start-up operations shall reflect
the per unit costs of labor and overhead. For pur-
poses of this paragraph the term ‘start-up period’
shall mean the period prior to the commencement of
commercial production (as defined in the normal
course of business by the industry in question in the
exporting country) of a new general category of mer-
chandise.’’
SEC. 107. PREVENTION OF EVASION OF ANTIDUMPING AND
COUNTERVAILING DUTY ORDERS.
(a) MERCHANDISE COMPLETED OR ASSEMBLED IN
THE UNITED STATES.—Section 781(a) of the Tariff Act
of 1930 (19 U.S.C. 1677j(a)) is amended to read as
follows:
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‘‘(a) MERCHANDISE COMPLETED OR ASSEMBLED IN
THE UNITED STATES.—
‘‘(1) IN GENERAL.—In determining whether im-
ported materials or components are circumventing
an antidumping or countervailing duty order or find-
ing and whether to include such materials or compo-
nents in that order or finding, the administering au-
thority shall consider—
‘‘(A) the pattern of trade,
‘‘(B) the value and sources of supply of
materials or components historically used in
completion or assembly of the merchandise sub-
ject to an antidumping or countervailing duty
order,
‘‘(C) whether the manufacturer or exporter
of the materials or components is related to the
person who assembles or completes the mer-
chandise sold in the United States from the ma-
terials or components produced in the foreign
country with respect to which the order or find-
ing described in paragraph (2) applies, and
‘‘(D) whether imports into the United
States of the materials or components produced
in such foreign country have increased after the
issuance of such order or finding.
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‘‘(2) MERCHANDISE THAT MAY BE INCLUDED
IN ORDER OR FINDING.—If—
‘‘(A) merchandise sold in the United
States is of the same class or kind as any other
merchandise that is the subject of—
‘‘(i) an antidumping duty order issued
under section 736,
‘‘(ii) a finding issued under the Anti-
dumping Act of 1921, or
‘‘(iii) a countervailing duty order is-
sued under section 706 or 303;
‘‘(B) such merchandise sold in the United
States is completed or assembled in the United
States from materials or components supplied
by the exporter or producer with respect to
which such order of finding applies, from sup-
pliers that have historically supplied the mate-
rials or components to that exporter or pro-
ducer, or from any party supplying materials or
components on behalf of such an exporter or
producer;
‘‘(C) the value of the imported materials
and components referred to in subparagraph
(B), whether considered individually or collec-
tively, is significant in relation to the total value
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of all materials and components used in the as-
sembly or completion operation, excluding pack-
aging, of the imported merchandise covered by
the order or finding; and
‘‘(D) consideration of the factors set forth
in paragraph (1) otherwise establishes a pattern
of circumvention with the effect of evading an
antidumping or countervailing duty order or
finding;
the administering authority, after taking into ac-
count any advice provided by the Commission under
subsection (e), may include within the scope of such
order or finding the imported materials or compo-
nents referred to in subparagraphs (B) and (C) that
are used in the completion or assembly of the mer-
chandise in the United States at any time such
order or finding is in effect.’’.
(b) MERCHANDISE COMPLETED OR ASSEMBLED IN
OTHER FOREIGN COUNTRIES.—Section 781(b) of the
Tariff Act of 1930 (19 U.S.C. 1677j(b)) is amended to
read as follows:
‘‘(b) MERCHANDISE COMPLETED OR ASSEMBLED IN
OTHER FOREIGN COUNTRIES.—
‘‘(1) IN
GENERAL.—In determining whether
merchandise complete or assembled in a foreign
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country is circumventing an antidumping or counter-
vailing duty order or finding and whether to include
such merchandise in that order or finding, the ad-
ministering authority shall consider—
‘‘(A) the pattern of trade,
‘‘(B) the value and sources of supply of
materials or components historically used in
completion or assembly of the merchandise sub-
ject to an antidumping or countervailing duty
order,
‘‘(C) whether the manufacturer or exporter
of the merchandise described in paragraph
(2)(B) is related to the person who used the
merchandise described in subparagraph (2)(B)
to assemble or complete in the foreign country
the merchandise that is subsequently imported
into the United States, and
‘‘(D) whether imports into the foreign
country of the merchandise described in sub-
paragraph (2)(B) have increased after the issu-
ance of such order or findings.
‘‘(2) MERCHANDISE THAT MAY BE INCLUDED
IN ORDER OR FINDING.—If—
‘‘(A) merchandise imported into the United
States is either of the same class or kind or in-
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corporates an essential component that is of the
same class or kind as merchandise produced in
a foreign country that is the subject of—
‘‘(i) an antidumping duty order issued
under section 736,
‘‘(ii) a finding issued under the Anti-
dumping Act, 1921, or
‘‘(iii) a countervailing duty order is-
sued under section 706 or section 303; and
‘‘(B)(i) before importation into the United
States, such imported merchandise is completed
or assembled in another foreign country from
merchandise which is subject to such order or
finding, is produced in the foreign country with
respect to which such order of finding applies,
or is supplied by the exporter or producer with
respect to which such order of finding applies
or by suppliers that have historically supplied
the materials or components to that exporter or
producer, and such merchandise which is used
in the assembly or completion or the imported
merchandise has a value that is significant in
relation to the total value of all materials or
components used in the assembly or completion
operation, excluding packaging; or
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‘‘(ii) consideration of the factors set forth
in paragraph (1) otherwise establishes a pattern
of circumvention with the effect of evading a
countervailing or antidumping duty order or
findings; and
‘‘(C) the administering authority deter-
mines that action is appropriate under this
paragraph to prevent evasion of such order of
findings,
the administering authority, after taking into ac-
count any advice provide by the Commission under
subjection (e), may include such imported merchan-
dise within the scope of such order or finding at any
time such order of finding is in effect.’’.
(c) CONSTRUCTION PROVISION.—Section 781 of the
Tariff Act of 1930 (19 U.S.C. 1677j) is amended by add-
ing at the end thereof the following new subsection:
‘‘(f) CONSTRUCTION PROVISION.—Nothing in this
title shall be deemed to limit the authority of the admin-
istering authority to include provisions in any final order
issued pursuant to—
‘‘(1) an antidumping order issued under section
736,
‘‘(2) a finding issued under the Antidumping
Act of 1921, or
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‘‘(3) a countervailing duty order issued under
section 706 or section 303,
the purpose of which is to prevent the evasion of any rem-
edy provided for in such finding or order or to otherwise
safeguard the integrity of such finding or order.’’.
(d) CIRCUMVENTION TIMELINES AND PROCEDURAL
REQUIREMENTS.—Section 781(a) of the Tariff Act of
1930 (19 U.S.C. 1677j(a)), as amended by this Act, 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 twenty days
whether to initiate an investigation.
‘‘(B) Within one hundred-eighty days of
the initiation of an investigation, the admin-
istering authorities will make a preliminary af-
firmative or negative determination.
‘‘(C) The administering authority will give
the parties the opportunity to file briefs and
participate in a hearing after the preliminary
determination.
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‘‘(D) The administering authority will
issue a final determination within seventy-five
days after the preliminary determination.
‘‘(E) The administering authority will give
interested parties the opportunity to obtain con-
fidential information under the administering
authority’s administrative protective order pro-
cedures.’’.
SEC. 108. STANDING.
Section 732(b) of the Tariff Act of 1930 (19 U.S.C.
1673a(b), as amended by this Act, is amended by adding
the following at the end thereof:
‘‘(4) STANDING.—
‘‘(A) Upon examination of a petition that
is filed, accompanied by supporting evidence, al-
leging that the petitioning members of the do-
mestic industry account for 25 percent or more
of the total production of the like product pro-
duced by the domestic industry, the administer-
ing authority shall not be required to further
investigate the standing of petitioners unless a
written objection to initiation is filed by a mem-
ber of the domestic industry.
‘‘(B) Where a petition is filed without al-
leging the support of at least 25 percent of the
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total domestic production of the like product,
the administering authority shall—
‘‘(i) request an expression of support
or opposition from members of the domes-
tic industry within five days after the date
of filing; and
‘‘(ii) initiate the investigation if other
requirements are met, and the petition is
supported by members of the domestic in-
dustry whose collective output constitutes
25 percent or more of production of the
like product or supported by members of
the domestic industry whose collective out-
put constitutes more than 50 percent of
the total production of the like product
produced by that portion of the domestic
industry expressing an opinion or, in cases
of fragmented industries involving a large
number of producers, where sampling of
opinion determines that the petition is sup-
ported by a proportion of members of the
domestic industry whose collective output,
as applied to the industry as a whole,
would constitute more than 50 percent of
the total production of the like product.
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‘‘(C) If there is a written objection by a
member of the domestic industry within five
days after publication of the notice of initiation,
the administering authority shall poll members
of the domestic industry and an affirmative
final determination under 1673d(a) of this title
shall not be issued unless the petition is sup-
ported by members of the domestic industry
whose collective output constitutes more than
50 percent of the total production of the like
product produced by that portion of the domes-
tic industry expressing support or opposition to
the petition or, in cases of fragmented indus-
tries involving a large number of producers,
where sampling of opinion determines that the
petition is supported by a proportion of mem-
bers of the domestic industry whose collective
output, as applied to the industry as a whole,
constitutes more than 50 percent of the total
production of the like product. At least 25 per-
cent of the domestic industry must support the
petition.
‘‘(D) Expressions of opposition to initi-
ation or continuation of an investigation under
this title shall be disregarded if such opposition
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is made by a producer that is related to the ex-
porters or importers, or that is itself an im-
porter of the allegedly dumped merchandise.
‘‘(E) An affirmative statement of support
by a union or other worker group in any com-
pany shall constitute support for the petition
from that company.
‘‘(F) Nothing in this section shall preclude
self-initiation of an investigation, and the provi-
sions of this section shall not apply in the case
of self-initiation.
‘‘(G) These provisions shall not apply to
reviews of orders conducted pursuant to section
1675 of title 19, United States Code.
‘‘(H) In investigations of regional indus-
tries, pursuant to section 1677(4)(C) of title
19, United States Code, the domestic industry’s
production shall be limited, for purposes of this
section, to domestic production in the region or
regions as defined in the petition.’’.
SEC. 109. SELLING, GENERAL AND ADMINISTRATIVE EX-
PENSES, AND PROFIT.
(a) Section 771 of the Tariff Act of 1930, as amend-
ed (19 U.S.C. 1677), is amended by adding the following
new paragraph:
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‘‘(21) SAME GENERAL CATEGORY OF MERCHAN-
DISE.—The term ‘same general category of mer-
chandise’ means the most discrete general grouping
of products in terms of physical characteristics and
uses which contains the class or kind of merchandise
subject to investigation.’’.
(b) Section 773(e)(1) of the Tariff Act of 1930, as
amended (19 U.S.C. 1677b(e)(1)), is amended by striking
paragraph (B) and inserting in lieu thereof the following:
‘‘(B) an amount for selling, general and
administrative expenses equal to that incurred
on sales of merchandise of the same class or
kind as the merchandise under consideration
which are made by the exporter or producer
under investigation, in the usual commercial
quantities and in the ordinary course of trade,
expressed as a percentage of cost as defined in
subparagraph (A), except that when such
amounts cannot be determined on this basis,
they shall be based on any other evidence that
the administering authority determines to be
reasonably representative of such selling, gen-
eral and administrative expenses for the same
class or kind of merchandise or the same gen-
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eral category of merchandise, which shall be
based on the greatest of—
‘‘(i) the actual expenses incurred by
the exporter or producer in question on
production and sales in the domestic mar-
ket of the country of origin of the same
general category of merchandise;
‘‘(ii) the weighted average of the ac-
tual expenses incurred or realized by other
exporters or producers subject to investiga-
tion on production and sales of the same
class or kind of merchandise in the domes-
tic market of the country or origin;
‘‘(iii) the weighted average of the ac-
tual expenses incurred by other exporters
or producers subject to investigation on
production and sales of the same general
category of merchandise in the domestic
market of the country of origin; and
‘‘(iv) evidence of selling, general and
administrative expenses of producers in the
United States of the same like product or
same general category of merchandise,
where the administering authority deter-
mines that information on such expense for
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the same class of kind or same general cat-
egory of merchandise in the domestic mar-
ket of the country of origin is not available
or is not representative.’’.
(c) Section 773(e)(1) of the Tariff Act of 1930, as
amended (19 U.S.C. 1677b(e)(1)), is amended by striking
paragraph (C) as (E) and inserting the following new sub-
paragraphs:
‘‘(C) an amount for profit equal to that ac-
tually earned by the exporter or producer on
sales in the country of exportation of such or
similar merchandise, in the usual commercial
quantities and in the ordinary course of trade,
subject to the requirements of subsections
1677b(b) of this section and excluding any sales
between related parties that are not at arm’s
length prices, except that when such amounts
are not sufficient to recover a reasonable cost of
capital in the country of exportation or other-
wise cannot be determined on this basis, they
shall be based on the greatest of—
‘‘(i) the actual profits realized by the
exporter or producer in question on sales
in the country of exportation of the same
general category of merchandise, excluding
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sales of the class or kind of merchandise in
that market;
‘‘(ii) the weighted average of the ac-
tual profits earned by other exporters or
producers subject to investigation on sales
of the same class or kind of merchandise
in the country of exportation;
‘‘(iii) the weighted average of the ac-
tual profits earned by other exporters or
producers subject to investigation on sales
in the country of exportation of the same
general category of merchandise, excluding
sales of the class or kind of merchandise in
that market;
‘‘(iv) the actual profits earned by the
exporter or producer in question on sales
during the most recent period outside the
period of investigation or review in the
country of exportation of the same class or
kind of merchandise, in the usual commer-
cial quantities and in the ordinary course
of trade; or
‘‘(v) any other evidence that the ad-
ministering authority determines to be rea-
sonably probative of the amount of profit
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not less than an amount sufficient to re-
cover the cost of capital in the country of
exportation,
provided that the amount for profit so estab-
lished under this subsection shall not exceed the
amount determined under subsection (iii), if
any.
SEC. 110. REVIEWS UPON INFORMATION OR REQUEST OR
PASSAGE OF TIME.
Section 751(b) of the Tariff Act of 1930 (19 U.S.C.
1675) is amended to read as follows:
‘‘(b) REVIEWS UPON INFORMATION OR REQUEST OR
PASSAGE OF TIME.—
‘‘(1) IN GENERAL.—Whenever the administer-
ing authority or the Commission receives informa-
tion concerning, or a request by an interested party
within the meaning of section 1677(9) of this title
for the review of, an agreement accepted under sec-
tion 1671c or 1673c of this title or an antidumping
or countervailing duty order under this title or an
antidumping finding under the Antidumping Act of
1921, which shows changed circumstances sufficient
to warrant a review of such determination, finding
or order, it shall conduct such a review after pub-
lishing notice of the review in the Federal Register.
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In 
reviewing 
its 
determination 
under 
section
1671c(h)(2) of this title, the Commission shall con-
sider whether, in the changed circumstances, an
agreement accepted under section 1671c or 1673c(c)
of this title continues to eliminate completely the in-
jurious effects of imports of the merchandise.
‘‘(2) LIMITATION OF PERIOD OF REVIEW.—In
the absence of good cause shown—
‘‘(A) the Commission may not review a de-
termination under 1671d(b) or 1673d(b) of this
title; and
‘‘(B) the administering authority may not
review a finding of dumping or subsidies under
this title or section 1303 of title 19, United
States Code, or of dumping under the Anti-
dumping Act of 1921,
less than twenty-four months after the date of publi-
cation of notice of the order, finding, determination
or suspension agreement.
‘‘(3) FIVE
YEAR
REVIEW.—Notwithstanding
subparagraphs (1) and (2), the administering au-
thority shall initiate once each five years a review to
determine whether the expiry of a suspension agree-
ment under section 1671c or 1673c, an antidumping
or countervailing duty order under this title, or an
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antidumping finding under the Antidumping Act of
1921, would be likely to lead to continuation or re-
currence of dumping and injury whenever—
‘‘(A) an administrative review conducted
under section 1675(a) of this title has been
completed within the prior twelve months or is
ongoing at a time thirty days prior to the rel-
evant five year deadline or the existing cash de-
posit rate for any exporter is 10 percent ad va-
lorem or more at a time thirty days prior to the
relevant five year deadline; or
‘‘(B) a request is made by or on behalf of
the domestic industry at least ninety days prior
to the five year deadline identified in this sub-
section.
The five year period will be measured from the date
of an antidumping finding or order, a countervailing
duty order or a suspension agreement (as modified
by subsection (b)(4)) or from the date of the Federal
Register notice of the completion of a review under
subsection (b)(3) or a review under subsection
(b)(1). Notice of the commencement of the review
shall be promptly published in the Federal Register.
However, where the requirements of (A) or (B) are
satisfied, the review shall be deemed initiated on or
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before the expiry of the five year deadline regardless
of whether notice is published prior to such date.
‘‘(4) DATES FOR EXISTING ORDERS, FINDINGS
OR
SUSPENSION
AGREEMENTS
FOR
PURPOSE
OF
SUBSECTION (b)(3).—All existing antidumping and
countervailing duty orders or suspension agreements
under this title or antidumping findings under the
Antidumping Act of 1921 shall be deemed for pur-
poses of subsection (b)(3) to be imposed on the date
of entry into force for the Untied States of the
agreement establishing the World Trade Organiza-
tion, July 1, 1995.
‘‘(5) In conducting reviews under subsections
(b) (3) and (4), the administering authority may
elect to treat an ongoing review under 1675(a) as a
review for purposes of determining whether dumping
will likely continue or recur; evidence that dumping
has occurred in the ongoing or immediately preced-
ing review shall create a presumption that dumping
is likely to continue or recur.
‘‘(6) For purposes of subsection (b)(4) the
Commission:
‘‘(A) May consolidate reviews from various
countries for the same class or kind and may
consolidate related classes or kinds of merchan-
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dise based on either simultaneous consideration
of the product classes in the original injury in-
vestigation or on the similarity in domestic in-
terested parties.
‘‘(B) May commence reviews as early as
July 1, 1999, to distribute the administrative
burden, and should normally complete reviews
within twelve months (except that the counter-
vailing duty order, antidumping order, or anti-
dumping finding under review may not be re-
voked, in whole or in part, prior to July 1,
2000).
‘‘(i) Where the complexity of the re-
view or the number of reviews being con-
sidered warrant, the Commission may ex-
tend completion of the reviews beyond
twelve months to the extent necessary.
‘‘(ii) Prior to commencing reviews, the
Commission may forward sample question-
naire forms and likely information needs to
potential interested parties as long as re-
sponses to such informational requests are
not due prior to the commencement of a
review and such requests are not transmit-
ted more than twelve months before the
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likely commencement date. The exercise of
this subsection shall not trigger commence-
ment of the twelve month time limitation
on a review as required by paragraph (B).
‘‘(C) Imports of the same class or kind of
merchandise from all outstanding antidumping
and countervailing duty orders, findings, or sus-
pension agreements may be cumulatively as-
sessed where cumulative assessment would sup-
port a finding of continuation or recurrence of
dumping and injury. This section is applicable
whether one or more of the findings, orders or
suspension agreements involves a regional in-
dustry subject to the provisions of (b)(9).
‘‘(7) BASIS FOR REVIEWS.—In conducting re-
views under subsection (b)(4), such reviews shall not
be commenced earlier than July 1, 1999. This para-
graph shall not be applied to reviews initiated under
paragraph (3)(B).
‘‘(8) FACTUAL SITUATIONS.—For purposes of
subsection (b), the administering authority and
Commission shall, based on the underlying factual
information, consider the following factual situations
and those consequences that would normally be ex-
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pected to result from the revocation of an antidump-
ing order, or finding, or countervailing duty order—
‘‘(A) that dumping or subsidies will con-
tinue or recur where dumping or subsidy mar-
gins were found in the last completed adminis-
trative review or are found in an ongoing review
under 1675(a);
‘‘(B) that dumping will continue or recur
where dumping margins have been eliminated in
the last review period when import volumes
have also declined;
‘‘(C) that subsidies will be reconferred
where the subsidy program continues but a par-
ticular industry has been excluded from its ben-
efits;
‘‘(D) that price depression or suppression
will continue or recur where dumping or sub-
sidy margins continue to be found;
‘‘(E) that import volumes will increase
where dumping margins continue to be found;
‘‘(F) that import volumes will increase
where antidumping duty or countervailing duty
orders or suspension agreements or safeguard
or other import programs will continue in other
countries;
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‘‘(G) that import volumes will increase
where unutilized capacity exists or capacity ex-
pansions are in progress;
‘‘(H) that the like product for purposes of
the review will be the same as in the original
investigation and will specifically include all
products found through scope inquiries or no-
tices of clarification to be covered by the find-
ing, order or suspension agreement;
‘‘(I) that import volumes will increase
where offshore inventories, as a ratio to con-
sumption within the United States of a like
product, are at levels equal to, or grater than,
such volumes at the time of the original inves-
tigation; and
‘‘(J) that import volumes will increase
where there is the presence of related parties or
distribution systems within the United States.
‘‘(9) VERIFICATION.—All information relied on
by the administering authority or Commission shall
be verified, when considered appropriate, particularly
information pertaining to the likely conduct of for-
eign producers and, or, importers if an order, find-
ing or suspension agreement were to be revoked or
terminated.
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‘‘(10) REGIONAL
DOMESTIC
INDUSTRIES.—In
the case of a countervailing duty or antidumping
duty order imposed as a result of an investigation
involving a regional domestic industry, the Commis-
sion shall determine whether expiration of the order
would be likely to lead to continuation or recurrence
of material injury or threat of material injury to the
regional industry as defined by the Commission in
the original investigation, notwithstanding any
changes in regional market isolation or regional im-
port concentration since the original investigation, or
to a different regional industry satisfying the criteria
of section 1677(4)(C) of title 19, United States
Code, as of the time of the review.
‘‘(11) CHANGED
CIRCUMSTANCES.—A party
previously excluded from an antidumping or counter-
vailing duty order, having been determined by the
administering authority in its original investigation
not to be dumping or countervailably subsidized,
may be made subject to that order if later found
under this subsection to be dumping or receiving
countervailable subsidies above a de minimis level.
‘‘(12) STANDARD OF REVIEW.—
‘‘(A) The test of whether revocation of an
order or finding or the termination of a suspen-
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sion agreement would be likely to lead to con-
tinuation or recurrence of injury is necessarily
predictive and shall be satisfied where such an-
ticipated injury is not inconsequential, immate-
rial or unimportant within the meaning of
1677(7)(A). In making this determination the
Commission shall take into account the factual
situations set forth in subsection (8).
‘‘(B) An affirmative determination under
this section can be premised upon any one of
six independent standards—
‘‘(i) whether the expiry of the duty
would be likely to lead to continuation of
material injury by reason of dumped or
subsidized imports;
‘‘(ii) whether the expiry of the duty
would be likely to lead to continuation of
the threat of material injury by reasons of
dumped or subsidized imports;
‘‘(iii) whether the expiry of the duty
would be likely to lead to continuation of
material retardation of the establishment
of a domestic industry by reason of
dumped or subsidized imports;
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‘‘(iv) whether the expiry of the duty
would be likely to lead to recurrence of ma-
terial injury by reason of dumped or sub-
sidized imports;
‘‘(v) whether the expiry of the duty
would be likely to lead to recurrence of the
threat of material injury by reason of
dumped or subsidized imports; and
‘‘(vi) whether the expiry of the duty
would be likely to lead to recurrence of ma-
terial retardation of the establishment of a
domestic industry by reason of dumped or
subsidized imports.
‘‘(c) REVOCATION
OF
COUNTERVAILING
DUTY
ORDER, ANTIDUMPING ORDER, OR ANTIDUMPING FIND-
ING; TERMINATION OF SUSPENDED INVESTIGATION.—
‘‘(1) The administering authority may revoke,
in whole or in part, a countervailing duty order,
antidumping order or antidumping finding, or termi-
nate a suspended investigation, after review under
subsection (a) of this section.
‘‘(2) The administering authority shall revoke,
in whole or in part, an antidumping order or finding
or a countervailing duty order or shall terminate a
suspended investigation if the Commission deter-
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mines under subsection (b) that injury would not be
likely to continue or recur if the order, finding or
suspension agreement were revoked or terminated or
where the administering authority determines that
dumping or subsidies would not be likely to continue
or recur under (b)(3).
‘‘(3) Any order, finding or suspended investiga-
tion for which a review under subsection (b)(3) has
not been commenced within five years of the anni-
versary date of the order, finding or suspended in-
vestigation, as those dates are modified by (b)(4),
shall be revoked or terminated upon publication of
a notice from the administering authority in the
Federal Register that no review has been or will be
conducted under (b)(3).
‘‘(4) Any revocation or termination under sub-
section (b) shall apply with respect to unliquidated
entries of merchandise entered, or withdrawn from
warehouse, for consumption on and after the date of
publication of the notice of revocation or termination
in the Federal Register. Other revocations or termi-
nations under section 1675 shall apply with respect
to unliquidated entries of merchandise entered, or
withdrawn from warehouse, for consumption on and
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after a date determined by the administering
authority.
‘‘(d) HEARINGS.—Whenever the administering au-
thority or the Commission conducts a review under this
section it shall, upon the request of any interested party,
hold a hearing in accordance with section 1677c(b) of this
title in connection with that review.’’.
SEC. 111. CURRENCY CONVERSION.
Section 773(a)(4)(C) of the Tariff Act of 1930, as
amended (19 U.S.C. 1677(a)(4)(C)), is amended by in-
serting the following new sections:
‘‘(D) the effects of fluctuations in ex-
change rates where dumping margins otherwise
would be created solely by such fluctuations;
‘‘(E) the effects of sustained changes in
exchange rates for sixty days prior to the time
such merchandise is first sold within the mean-
ing of paragraph (a)(1) of this section, but only
in the context of antidumping investigations
pursuant to part II of this title and only where
the producer or exporter has changed its prices
in order to account for such changes in ex-
change rates; or
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‘‘(F) the purchase of foreign currency on
forward markets directly linked to the sale of
imported merchandise;’’.
SEC. 112. SAMPLING AND AVERAGING.
Section 777A(a) of the Tariff Act of 1930, as amend-
ed (19 U.S.C. 1677f–1(a)), is amended by—
(1) striking ‘‘IN GENERAL.—’’ from paragraph
(a), striking subparagraph (2), and redesignating
paragraph (a) as subparagraph (1) and redesignat-
ing subparagraph (1) as (A);
(2) inserting paragraph ‘‘(a) IN GENERAL.—’’
before the newly designated subparagraph (1);
(3) adding at the end of subparagraph (1)(A)
the following:
‘‘(B) shall decline to take into account ad-
justments that amount to less than 1 percent of
the 
unadjusted 
United 
States 
price 
or
unadjusted foreign market price, as appro-
priate.’’.
(4) adding at the end of subparagraph (1) the
following new subparagraph:
‘‘(2) For the purpose of comparing United
States price with foreign market value under Section
1675 of this title, the administering authority shall
normally compare the United States price of each
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entry or each sale with a foreign market value based
upon weighted average or preponderant prices deter-
mined under section 1677b(a) of this title, or upon
constructed value.’’.
(5) adding at the end of paragraph (b) the fol-
lowing: ‘‘For purposes of investigations under part
II of this title, where a significant number of pro-
ducers and exporters or a significant number of dif-
ferent products are involved, the administering au-
thority may sample producers and exporters or prod-
ucts, based upon statistically valid sample tech-
niques, after seeking and taking account of the views
of all interest parties. The administering authority
in such cases shall, to the extent practically possible
within the time constraints of the investigation or
review, determine estimated duty deposits and as-
sessment rates for each producer or exporter that so
requests and that provides adequate information in
a timely manner. Alternatively, the administering
authority may determine United States price or for-
eign market value upon those sales which account
for the largest percentage of the volume of subject
imports which can reasonably be investigated (nor-
mally 60 percent or more of the total volume of im-
ports). However, for good cause shown, upon request
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of petitioner, the administering authority shall inves-
tigate producers and exporters accounting for a
higher percentage of the volume of subject im-
ports.’’.
(6) adding at the end of paragraph (b) the fol-
lowing new paragraphs:
‘‘(c) SPECIAL RULE.—For the purpose of carrying
out an investigation under part II of this title, the admin-
istering authority shall collect individual transaction prices
for United States price and foreign market value (includ-
ing information on purchasers, regions, and time period),
and shall—
‘‘(1) utilize individual transaction prices for the
determination of United States price and for com-
parison to fair value whenever individual transaction
prices are used for the determination of fair value;
and
‘‘(2) utilize weighted average prices for the de-
termination of United States price and for compari-
son to fair value whenever weighted average prices
are used for the determination of fair value;
except that United States price shall be determined for
each entry or transaction and compared to a weighted av-
erage fair value whenever there is satisfactory evidence
that United States prices vary significantly among dif-
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ferent purchasers, regions, or by time period over 20 per-
cent or more of the quantity sold during the period of in-
vestigation.
‘‘(d) CALCULATION
OF
ADJUSTMENTS, SPECIAL
RULE.—Notwithstanding paragraph (b), the administer-
ing authority shall average expenses or income only across
those sales to which such expenses or income are attrib-
utable for purposes of calculating adjustments to United
States price or foreign market value under 1677a and
1677b.’’.
SEC. 113. MARKET VIABILITY.
(a) Section 773(a)(1)(B) of the Tariff Act of 1930,
as amended (19 U.S.C. 1677b(a)(1)(B)), is amended as
follows:
‘‘(B) if not sold or offered for sale for
home consumption, or if the administering au-
thority determines that the quantity sold for
home consumption is so small in relation to the
quantity sold for exportation to the United
States as to form an inadequate basis for com-
parison, then the price at which so sold or of-
fered for sale for exportation to countries other
than the United States, provided that the ad-
ministering authority does not determine that
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the foreign market value should be determined
on the basis of constructed value,’’.
(b) Section 773(a)(1) of the Tariff Act of 1930, as
amended (19 U.S.C. 1677b(a)(1)) is amended by adding
to the end thereof the following: ‘‘In determining whether
the quantity sold for home consumption is so small in rela-
tion to the quantity sold for exportation to the United
States to form an adequate basis for comparison, the ad-
ministering authority may exclude, in appropriate cir-
cumstances, home market sales to related parties (as de-
fined in 19 U.S.C. 1677b(e)(4)) or home market sales to
companies directly or indirectly owning, controlling or
holding with the power to vote, 5 percent or more of the
outstanding voting stock or shares of a related party.’’
(c) Section 773(d) of the Tariff Act of 1930, as
amended (19 U.S.C. 1677b(d)), is amended by adding at
the end thereof the following: ‘‘Sales in the home market
will not be used as the basis for comparison when the
number of sales is so small in relation to the quantity sold
for exportation to the United States as to form an inad-
equate basis for comparison. In determining whether the
quantity sold for home consumption is so small in relation
to the quantity sold for exportation to the United States
to form an adequate basis for comparison, the administer-
ing authority may exclude, in appropriate circumstances,
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home market sales to related parties (as defined in 19
U.S.C. 1677b(e)(4)) or home market sales to companies
directly or indirectly owning, controlling or holding with
the power to vote, 5 percent or more of the outstanding
voting stock or shares of a related party.’’.
SEC. 114. NEGLIGIBLE IMPORTS.
Section 771(7)(C)(v) of the Tariff Act of 1930, as
amended (19 U.S.C. 1677(7)(C)(v)), is amended by strik-
ing the subparagraph and inserting in lieu thereof the
following:
‘‘(v) TREATMENT OF NEGLIGIBLE IM-
PORTS.—The Commission shall imme-
diately terminate its investigation where,
during its investigation for purposes of
making a preliminary determination, or
final determination, pursuant to section
1671b of title 19, United State Code, the
Commission determines that the volume of
imports (or sale for importation) from a
particular country of the merchandise
which is subject to investigation accounts
for less than 3 percent of imports of such
merchandise, unless countries which indi-
vidually account for less than 3 percent of
the imports of such merchandise collec-
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tively account for more than 7 percent of
imports of the merchandise. Notwithstand-
ing the foregoing, the Commission shall
not terminate its investigation pursuant to
this subsection with regard to imports
from a particular country where the value
of imports or merchandise subject to inves-
tigation, based on the actual sales of those
imports, from that country during the four
most recent quarterly periods for which the
Commission has data exceeds an amount
which bears the same ratio to $5,000,000
as the average gross national product of
the United States for that period, as deter-
mined by the Department of Commerce,
bears to the average gross national product
of the United States for the four quarters
of calendar year 1994.
‘‘(I) For purposes of this sub-
section, the share of imports from a
particular country of the merchandise
which is subject to investigation shall
be assessed during the most recent
twelve month period for which the
Commission has data.
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‘‘(II) In cases where the Commis-
sion determines circumstances appro-
priate to make its determination on
the basis of a regional industry, pur-
suant to section 1677(4)(C) of title
19, United States Code, the percent-
age of import volume calculated for
purposes of this subsection shall be
based upon imports to that region,
where practicable.’’.
SEC. 115. CAPTIVE PRODUCTION.
Section 771(4) of the Tariff Act of 1930 (19 U.S.C.
1677(4)) is amended by adding at the end thereof the fol-
lowing new subparagraph:
‘‘(F) CAPTIVE PRODUCTION.—In any in-
vestigation involving production that domestic
producers both sell in the merchant market and
further process into another distinct product,
the Commission shall not include the semi-fin-
ished production within the definition of the fin-
ished like product destined for the merchant
market, unless the Commission determines both
that semi-finished production by the industry
competes to a significant degree with all pro-
duction of the finished product, and that such
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semi-finished production competes to a signifi-
cant degree with the imports of the finished
products subject to investigation.’’.
SEC. 116. DUTY AS A COST.
(a) Section 772(e)(2) of the Tariff Act of 1930, as
amended (19 U.S.C. 1677a(e)(2)) is amended by striking
‘‘and’’ at the end thereof.
(b) Section 772(e) of the Tariff Act of 1930, as
amended (19 U.S.C. 1677a(e)), is amended by renumber-
ing paragraph (3) as paragraph (4), and inserting the fol-
lowing after paragraph (2):
‘‘(3) any deposits of estimated antidumping du-
ties made with respect to the merchandise, unless—
‘‘(A) the administering authority deter-
mines that the resulting exporter’s sales price
without adjustment for such duties is equal to
or greater than the foreign market value of the
merchandise, and
‘‘(B) the exporter has filed a written cer-
tification with the administering authority and
the United States Customs Service that—
‘‘(i) the transaction price for purposes
of subsection (c) of this section included
the full amount of the estimated antidump-
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ing duty deposited with respect to such
merchandise, and
‘‘(ii) the exporter did not directly or
indirectly reimburse or otherwise com-
pensate the purchaser for such deposits;
and
the administering authority is satisfied that the
conditions of subsection (A) and (B) have been
fulfilled with respect to such merchandise;
and’’.
(c) Section 751(a) of the Tariff Act of 1930, as
amended (19 U.S.C. 1675(a)), is amended by adding to
the end thereof the following:
‘‘(3) SPECIAL RULE.—For purposes of the as-
sessments of antidumping duties and the deposits of
estimated antidumping duties to be based upon the
results of the determination of antidumping duties
referred to in subsection (a)(2), where the importer
of the merchandise is the exporter as defined in sec-
tion 771(13), the determination under subsection
(a)(2) shall be deemed to be a determination of
nominal antidumping duties in that such duties may
be subject to further adjustment to reflect the extent
to which the duties are absorbed by the exporter.
Therefore, in such instances where the importer is
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the exporter, the administering authority shall in-
struct the United States Customs Service to assess
antidumping duties in the amount of the nominal
antidumping duties determined, provided that, prior
to liquidation, the exporter—
‘‘(A) provides written certification that—
‘‘(i) the full amount of an assessment
on the merchandise based upon the
amount of the nominal antidumping duties
shall be passed on by the exporter to this
unrelated purchaser of the merchandise;
and
‘‘(ii) the exporter shall not directly or
indirectly reimburse or otherwise com-
pensate its unrelated purchaser for such
assessment; and
‘‘(B) within six months following liquida-
tion, furnishes affirmative and verifiable evi-
dence that such assessment in fact has been
passed on to and paid by such purchaser.
If the exporter fails to certify and furnish the other
evidence indicating that the full amount of nominal
antidumping duties is passed on by the exporter to
its unrelated purchaser, the assessments of anti-
dumping duties shall be based upon the full amount
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of the nominal antidumping duties plus the amount
thereof not shown to be passed on to the unrelated
purchaser.’’.
TITLE II—INTELLECTUAL PROPERTY
AMENDMENTS
SEC. 201. INTERNATIONAL 
INTELLECTUAL 
PROPERTY
PROTECTION OBJECTIVES.
Section 1101(b)(10) of the Omnibus Trade and Com-
petitiveness Act of 1988, as amended (19 U.S.C.
2901(b)(10)), is amended to provide—
‘‘(10) INTELLECTUAL
PROPERTY.—The prin-
cipal objectives of the United States regarding inter-
national intellectual property protection are—
‘‘(A) to accelerate the full implementation
of parts I, II, and III of the Uruguay Round
Agreement on Trade-Related Aspects of Intel-
lectual Property Rights;
‘‘(B) to seek enactment and effective im-
plementation by foreign countries of standards
for protection and enforcement of intellectual
property rights that supplement and strengthen
the standards and obligations contained in the
Uruguay Round Agreement on Trade-Related
Aspects of Intellectual Property Rights and the
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North American Free Trade Agreement, includ-
ing, but not limited to—
‘‘(i) supplementing and strengthening
such standards and obligations through bi-
lateral and multilateral agreements, in par-
ticular, to cover new and emerging tech-
nologies, and new methods of transmission,
distribution, and uses; and
‘‘(ii) eliminating discrimination, un-
reasonable exceptions, or preconditions to
the protection, enforcement, or commercial
enjoyment of the full economic benefits
arising from any use or exploitation of in-
tellectual property rights;
‘‘(C) to secure fair, equitable, and non-dis-
criminatory market access opportunities for
United States persons holding intellectual prop-
erty rights, including rights now, or hereafter,
granted by a foreign country to its own nation-
als under domestic laws and regulations in re-
spect of any use or exploitation of protected
works, fixations, or products embodying pro-
tected rights;
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‘‘(D) to take an active role in the develop-
ment of the intellectual property regime under
the World Trade Organization (WTO);
‘‘(E) to take an active role in the World
Intellectual Property Organization (WIPO) and
ensure that the WIPO and the WTO work to-
gether in a mutually supportive fashion; and
‘‘(F) to ensure that all international agree-
ments entered into by the United States sup-
port the high level of protection of intellectual
property rights set forth in the Model Intellec-
tual Property Agreement established under sec-
tion 205 of the GATT Fair Trade Enforcement
Act of 1994.
In addition, the United States Trade Representative,
in consultation with the appropriate United States
Government agencies, the relevant congressional
committees, and the private sector, shall develop
other international intellectual property-related ob-
jectives as necessary or appropriate.’’.
SEC. 202. FAST TRACK AUTHORITY FOR NEW FREE TRADE
AGREEMENTS.
(a) Section 1102 of the Omnibus Trade and Competi-
tiveness Act of 1988 (19 U.S.C. 2902) is amended by—
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(1) in paragraph (b)(1), replacing ‘‘1993’’ with
‘‘year’’;
(2) in subsection (b), renumbering paragraph
(2) as (3);
(3) inserting a new paragraph (b)(2) to pro-
vide—
‘‘(2) The President may not enter into any ne-
gotiation of a new free trade agreement with a for-
eign country under this paragraph, unless he first
determines that such country—
‘‘(A) has substantially implemented parts
I, II, and III of the Uruguay Round Agreement
on Trade-Related Aspects of Intellectual Prop-
erty Rights, and
‘‘(B) expresses willingness to negotiate an
agreement with the United States under which
it will provide intellectual property protection
equivalent to that set forth in the Model Intel-
lectual Property Agreement established under
section 205 of the GATT Fair Trade Enforce-
ment Act of 1994.’’;
(4) in paragraph (c)(1), replacing ‘‘1993’’ with
‘‘year’’;
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(5) in subsection (c), renumbering paragraphs
(2), (3), (4), and (5) as (3), (4), (5), and (6), re-
spectively;
(6) inserting a new paragraph (c)(2) to pro-
vide—
‘‘(2) The President may not enter into any ne-
gotiation of a new free trade agreement, including a
free trade agreement, with a foreign country under
this paragraph, unless he first determines that such
country—
‘‘(A) has fully implemented parts I, II, and
III of the Uruguay Round Agreement on
Trade-Related Aspects of Intellectual Property
Rights, and
‘‘(B) expresses willingness to reach an
agreement with the United States under which
it will provide intellectual property protection
equivalent to that set forth in the Model Intel-
lectual Property Agreement established under
section 205 of the GATT Fair Trade Enforce-
ment Act of 1994.’’;
(7) inserting a new paragraph (c)(7) to pro-
vide—
‘‘(7) Upon signing any free trade agreement
that contains intellectual property-related provisions
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that supplement and strengthen the standards and
obligations contained in already-existing free trade
agreements, the President shall seek to bring all
United States free trade agreements to this higher
level of intellectual property protection, in so far as
possible.’’; and
(8) 
amending 
renumbered 
subparagraph
(c)(4)(C)(i) to provide—
‘‘(i) provides written notice of such
negotiations, including his determination
under paragraph (c)(2), to the Committee
on Finance of the Senate and the Commit-
tee on Ways and Means of the House of
Representatives, and’’.
(b) Section 1103(c) of the Omnibus Trade and Com-
petitiveness Act of 1988 (19 U.S.C. 2903(c)) is amended
by inserting a new paragraph (3) to provide—
‘‘(3) The fast track procedures shall not apply
to any implementing bill that contains a provision
approving of any trade agreement that is entered
into under section 1102(c), if the requirements of
section 1102(c)(2) (as renumbered by the Act) are
not met.’’.
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SEC. 203. SPECIAL 301.
Section 182 of the Trade Act of 1974, as amended
(19 U.S.C. 2242), is amended by—
(1) in paragraph (a)(1)—
(A) deleting the word ‘‘or’’ at the end of
subparagraph (a)(1)(A);
(B) replacing the word ‘‘and’’ at the end of
subparagraph (a)(1)(B) with the word ‘‘or’’,
and
(C) adding a new subparagraph (a)(1)(C)
to provide—
‘‘(C) deny non-discriminatory market ac-
cess opportunities for United States persons, in-
cluding access related to any exploitation or en-
joyment of commercial benefits from exercising
rights in protected works, fixations, or products
embodying protected works, and’’;
(2) inserting a new paragraph (a)(3) to pro-
vide—
‘‘(3) In making the identifications required
under paragraphs (1) and (2), the Trade Represent-
ative shall take into account—
‘‘(A) the history of intellectual property
laws and practices of foreign countries, includ-
ing any past identifications under these para-
graphs, and
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‘‘(B) the history of the efforts of the Unit-
ed States, and the responses to the foreign
country, to achieve adequate and effective pro-
tection of intellectual property rights.’’; and
(3) amending subsection (d) by—
(A) changing the initial paragraph of para-
graph d(2) to provide—
‘‘(2) A foreign country denies adequate and ef-
fective protection of intellectual property rights if
the country—
‘‘(A) has not fully implemented parts I, II,
and III of the Uruguay Round Agreement on
Trade-Related Aspects of Intellectual Property
Rights, or
‘‘(B) denies adequate and effective means
under the laws of the foreign country for per-
sons who are not citizens or nationals of such
foreign country to secure, exercise, enjoy full
commercial benefits, and enforce rights relating
to patients, process patents, registered trade-
marks, copyrights and related rights, trade se-
crets, and mask works, notwithstanding that
the foreign country may have fully implemented
parts I, II, and III of the Uruguay Round
Agreement on Trade-Related Aspects of Intel-
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lectual Property Rights, or the obligations of
any other bilateral, regional, or multilateral
agreement.’’;
(B) changing the initial paragraph of para-
graph (d)(3) to provide—
‘‘(3) A foreign country denies fair and equitable
market access if the foreign country effectively de-
nies access to a market for a product protected by
a copyright or related right, mask work, registered
trademark, trade secret, patent, or process patent
through the use of laws, procedures, or regulations
which—’’; and
(C) adding a new paragraph (d)(4) to pro-
vide—
‘‘(4) A foreign country denies non-discrimina-
tory market access opportunities for United States
persons in respect of establishing business oper-
ations or any use, benefit, or exploitation of pro-
tected works, fixations, or products embodying pro-
tected rights, when it grants access to methods of
distribution, collection of revenues generated from
the use or fixation of a product embodying protected
rights, or any other benefit in relation to such
works, fixations, or products embodying protected
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rights, on terms more advantageous to its own na-
tionals than to those nationals of another country.’’.
SEC. 204. AMENDMENT OF SECTION 337 OF THE TARIFF ACT
OF 1930.
(a) Section 337 of the Tariff Act of 1930, as amend-
ed (19 U.S.C. 1337), is amended by adding at the end
thereof the following new section—
‘‘SEC. 337A. UNFAIR PRACTICES IN DOMESTIC TRADE.
‘‘(a) UNLAWFUL ACTIVITIES; COVERED INDUSTRIES;
DEFINITIONS.—
‘‘(1) Subject to paragraph (2), the following are
unlawful, and when found by the Secretary of Com-
merce (hereafter referred to as the Secretary) to
exist shall be dealt with, in addition to any other
provision of law, as provided in this section:
‘‘(A) The sale of articles in the United
States by the owner, distributor, or consignee,
of articles that—
‘‘(i) infringe a valid and enforceable
United States patent or a valid and en-
forceable United States copyright reg-
istered under title 17; or
‘‘(ii) are made, produced, processed,
or mined under, or by means of, a process
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covered by the claims of a valid and en-
forceable United States patent.
‘‘(B) The sale of articles in the United
States by the owner, distributor, or consignee,
of articles that infringe a valid and enforceable
United States trademark registered under the
Trademark Act of 1946.
‘‘(C) The sale of articles in the United
States by the owner, distributor, or consignee,
of a semiconductor chip product in a manner
that constitutes infringement of a mask work
registered under chapter 9 of title 17.
‘‘(2) For purposes of this section, the phrase
‘owner, distributor, or consignee’ includes any agent
of the owner, distributor, or consignee.
‘‘(b) INVESTIGATIONS OF VIOLATIONS BY THE SEC-
RETARY OF COMMERCE.—
‘‘(1) The Secretary of Commerce shall inves-
tigate any alleged violation of this section on com-
plaint under oath or upon its initiative, except as
provided in subsection (3). Upon commencing any
such investigation, the Secretary shall publish notice
thereof in the Federal Register. The Secretary shall
conclude any such investigation, and make its deter-
mination under this section, at the earliest prac-
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ticable time, but not later than one year (eighteen
months in more complicated cases) after the date of
publication of notice of such investigation. The Sec-
retary shall publish in the Federal Register its rea-
sons for designating any investigation as a more
complicated investigation. For purposes of the one
year and eighteen month period prescribed by this
subsection, there shall be excluded any period of
time during which such investigation is suspended
because of proceedings in a court or agency of the
United States involving similar questions concerning
the subject matter of such investigations.
‘‘(2) During the course of each investigation
under this section, the Secretary shall consult with,
and seek advice and information from the Depart-
ment of Health and Human Services, the Depart-
ment of Justice, the Federal Trade Commission, and
such other departments and agencies as it considers
appropriate.
‘‘(3) The Secretary shall not investigate any al-
leged violation of this section where the articles sold
in the United States have been or are being inves-
tigated under section 1337 of this title. If, upon in-
vestigation of an alleged violation of this section on
complaint or upon its own initiative, the Secretary
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determines that the articles alleged to violate this
section are imported or are sold for importation or
are sold after importation by the owner, importer, or
consignee, then the investigation by the Secretary
shall be terminated and the matter referred to the
International Trade Commission under section 1337
of this title.
‘‘(c) DETERMINATIONS; REVIEW.—The Secretary
shall determine, with respect to each investigation con-
ducted by it under this section, whether or not there is
a violation of this section, except that the Secretary may,
by issuing a consent order or on the basis of a settlement
agreement, terminate any such investigation, in whole or
in part, without making such a determination. Each deter-
mination under subsection (c), (d), (e), (f), (g), or (h) of
this section shall be made on the record after notice and
opportunity for a hearing in conformity with the provi-
sions of subchapter II of chapter 5 of title 5. All legal
and equitable defenses may be presented in all cases. Any
person adversely affected by a final determination of the
Secretary under subsection (c), (d), (e), (f), (g), or (h)
of this section may appeal such determination, within sixty
days after the determination becomes final, to the United
States Court of Appeals for the Federal Circuit for review
in accordance with chapter 7 of title 5. Notwithstanding
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the foregoing provisions of this subsection, determination
by the Secretary under subsection (c), (d), (e), (f), (g),
or (h) of this section with respect to its findings on the
public health and welfare, competitive conditions in the
United States economy, the production of like or directly
competitive articles in the United States and United
States consumers, or the appropriate remedy shall be
reviewable in accordance with section 706 of title 5.
‘‘(d) PRELIMINARY INJUNCTION DURING INVESTIGA-
TION; PROCEDURES APPLICABLE.—
‘‘(1) If during the course of an investigation
under this section, the Secretary determines that
there is reason to believe that there is a violation of
this section, it may issue a preliminary injunction,
enjoining the person from selling like or directly
competitive articles in the United States. An Admin-
istrative Law Judge shall issue a preliminary injunc-
tion directing the person not to sell or offer for sale
the like or directly competitive articles in the United
States.
‘‘(2) A complainant may petition the Secretary
for the issuance of a preliminary injunction under
this subsection. The Secretary shall make a deter-
mination with regard to such petition by no later
than the ninetieth day after the date on which the
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Secretary’s notice of investigation is published in the
Federal Register. The Secretary may extend the
ninety day period for an additional sixty days in a
case it designates as a more complicated case. The
Secretary shall publish in the Federal Register its
reasons why it designated the case as being more
complicated. The Secretary may require the com-
plainant to post a bond as a prerequisite to the issu-
ance of an order under this subsection.
‘‘(3) The Secretary may grant preliminary relief
under this subsection or subsection (e) of this sec-
tion to the same extent as preliminary injunctions
and temporary restraining orders may be granted
under the Federal Rules of Civil Procedure.
‘‘(e) CEASE AND DESIST ORDERS; CIVIL PENALTY
FOR VIOLATIONS OF ORDERS.—
‘‘(1) The Secretary shall issue and cause to be
served on any person violating this section, or be-
lieved to be violating this section, as the case may
be, an order directing such person to cease and de-
sist from engaging in the unfair methods or acts in-
volved, unless after considering the effect of such
order upon the public health and welfare, competi-
tive conditions in the United States economy, the
production of like or directly competitive articles in
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the United States, and United States consumers, if
finds that such order should not be issued. The Sec-
retary may at any time, upon such notice and in
such manner as it deems proper, modify or revoke
any such order.
‘‘(2) Any persons who violates an order issued
by the Secretary under paragraph (1) after it has
become final shall forfeit and pay to the United
States a civil penalty for each day on which the vio-
lation occurs of not more than the greater of
$100,000 or twice the value of the articles sold on
such day in violation of the order. Such penalty shall
accrue to the United States and may be recovered
for the United States in a civil action brought by
Commerce in the Federal District Court for the Dis-
trict of Columbia or for the district in which the vio-
lation occurs. In such actions, the United States dis-
trict courts may issue mandatory injunctions incor-
porating the relief sought by the Secretary as they
deem appropriate in the enforcement of such final
orders.
‘‘(f) CEASE AND DESIST ORDER; CONDITIONS AND
PROCEDURES APPLICABLE.—If—
‘‘(1) a complaint is filed against a person under
this section;
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‘‘(2) the complaint and a notice of investigation
are served on the person;
‘‘(3) the person fails to respond to the com-
plaint and notice or otherwise fails to appear to an-
swer the complaint and notice;
‘‘(4) the person fails to show good cause why
the person should not be found in default; and
‘‘(5) the complainant seeks relief limited solely
to that person;
the Secretary shall presume the facts alleged in the
complaint to be true and shall, upon request, issue
a preliminary injunction or a cease and desist order,
or both, limited to that person unless, after consider-
ing the effect of such exclusion or order upon the
public health and welfare, competitive conditions in
the United States economy, and the United States
consumers, the Secretary finds that such exclusion
or order should not be issued.
‘‘(g) SANCTIONS FOR ABUSE OF DISCOVERY AND
ABUSE OF PROCESS.—The Secretary may by rule pre-
scribe sanctions for abuse of discovery and abuse of proc-
ess to the extent authorized by rule 11 and rule 37 of
the Federal Rules of Civil Procedure.
‘‘(h) FORFEITURE.—
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‘‘(1) In addition to taking action under sub-
section (e) or (f) of this section, the Secretary may
issue an order providing that any article sold in the
United States or offered for sale in violation of the
provisions of this section be seized and forfeited to
the United States if—
‘‘(A) the owner, distributor, or consignee
of the article previously attempted to sell the
article in the United States; and
‘‘(B) the Secretary provide the owner, dis-
tributor, or consignee of the articles written no-
tice of—
‘‘(i) such order, and
‘‘(ii) the seizure and forfeiture that
would result from any further violations of
the order.
‘‘(2) Any forfeiture order issued by the Sec-
retary under paragraph (1) may be enforced for the
United States in a civil action brought by Commerce
in the Federal District Court for the District of Co-
lumbia or for the district in which the violation oc-
curs. In such actions, the United States district
courts may issue mandatory injunctions incorporat-
ing the relief sought by the Secretary as they deem
appropriate in the enforcement of such orders.
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‘‘(i) REFERRAL TO PRESIDENT.—
‘‘(1) If the Secretary determines that there is a
violation of this section, or that, for purposes of sub-
section (d), (e), (f), (g), or (h) of this section, there
is reason to believe that there is such a violation, if
shall—
‘‘(A) published such determination in the
Federal Register, and
‘‘(B) transmit to the President a copy of
such determination and the action taken under
subsection (d), (e), (f), (g), or (h) of this sec-
tion, with respect thereto, together with the
record upon which such determination is based.
‘‘(2) If, before, the close of the sixty day period
beginning on the day after the day on which he re-
ceives a copy of such determination, the President,
for policy reasons, disapproves such determination
and notifies the Secretary of his disapproval, the, ef-
fective on the date of such notice, such determina-
tion and the action taken under subsections (d), (e),
(f), (g), or (h) of this section with respect thereto
shall have no force or effect.
‘‘(3) Subject to the provisions of paragraph (2),
such determination shall be effective upon publica-
tion thereof in the Federal Register.
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‘‘(4) The President does not disapprove such
determination within such sixty day period, or if he
notifies the Secretary before the close of such period
that he approves such determination, then, for pur-
poses of paragraph (3) and subsection (d) of this
section such determination shall become final on the
day after the close of such period on the day on
which the President notifies the Secretary of his ap-
proval, as the case may be.
‘‘(j) PERIOD OF EFFECTIVENESS.—
‘‘(1) Any enforcement provisions invoked, in-
cluding cease and desist orders pursuant to sub-
section (e) or (f), shall continue in effect until the
Secretary finds the conditions which lead to such
findings no longer exist.
‘‘(2) If any persons or company who has pre-
viously been found by the Secretary to be in viola-
tion of this section petitions the Secretary for a de-
termination that the petitioner is no longer in viola-
tion of this section or for a modification or recission
of an order—
‘‘(A) the burden of proof in any proceeding
before the Secretary regarding such petition
shall be on the petitioner; and
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‘‘(B) relief may be granted by the Sec-
retary with respect to such petition—
‘‘(i) on the basis of new evidence or
evidence that could not have been pre-
sented at the prior proceeding, or
‘‘(ii) on grounds which would permit
relief from a judgment or order under the
Federal Rules of Civil Procedure.
‘‘(k) DEFINITION OF UNITED STATES.—For pur-
poses of this section and sections 1338 and 1340 of this
title, the term ‘United States’ means the customs territory
of the United States as defined in general note 2 of the
Harmonized Tariff Schedule of the United States.
‘‘(l) DISCLOSURE
OF
CONFIDENTIAL
INFORMA-
TION.—
‘‘(1) Information submitted to the Secretary or
exchanged among the parties in connection with pro-
ceedings under this section which is properly des-
ignated as confidential pursuant to rules promul-
gated by the Secretary may not be disclosed (except
under a protective order issued under regulation
which authorizes limited disclosure of such informa-
tion) to any person (other than a person described
in paragraph (2)) without the consent of the person
submitting it.
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‘‘(2) Notwithstanding the prohibition contained
in paragraph (1), information referred to in that
paragraph may be disclosed to—
‘‘(A) an officer or employee of the Depart-
ment of Commerce who is directly concerned
with carrying out the investigation in connec-
tion with which the information is submitted, or
‘‘(B) an officer or employee of the United
States Government who is directly involved in
the review under subsection (i) of this section.’’.
SEC. 205. GENERALIZED SYSTEM OF PREFERENCES.
Section 502 of the Trade Act of 1974, as amended
(19 U.S.C. 2462), is amended by—
(1) redesignating subsections (c), (d), and (e)
as (d), (e), and (f), respectively; and
(2) inserting a new subsection (c) to provide—
‘‘(c)(1) Effective one year after the entry into force
of the Uruguay Round Agreement establishing the World
Trade Organization, the President shall not designate any
country a beneficiary developing country under this sec-
tion if such country has not fully implemented parts I,
II, and III of the Uruguay Round Agreement on Trade-
Related Aspects of Intellectual Property Rights.
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‘‘(2) If a country is a least developed country, the
President may designate such country a beneficiary devel-
oping country for four additional years.
‘‘(3) If the President certifies to Congress that a non
least developed country is making timely, overall, and sig-
nificant progress toward full implementation of parts I,
II, and III of the Uruguay Round Agreement on Trade-
Related Aspects of Intellectual Property Rights, the Presi-
dent may designate such country a beneficiary developing
country for one additional year.’’;
(3) deleting redesignated paragraph (d)(5), and
renumbering redesignated paragraphs (d)(6) and
(d)(7) as paragraphs (d)(5) and (d)(6), respectively;
and
(4) adding a new subsection (g) to provide—
‘‘(g) The President shall review annually whether
each country that has been designated under this section
as a beneficiary developing country, and has fully imple-
mented parts I, II, and III of the Uruguay Round Agree-
ment on Trade-Related Aspects of Intellectual Property
Rights, continues to fully implement that agreement.’’.
SEC. 206. MODEL INTELLECTUAL PROPERTY AGREEMENT.
(a) The United States Trade Representative, in con-
sultation with other appropriate United States Govern-
ment agencies and the private sector, shall maintain a
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Model Intellectual Property Agreement embodying provi-
sions for intellectual property protection that supplement
and strengthen the standards and obligations contained
in the Uruguay Round Agreement on Trade-Related As-
pects of Intellectual Property Rights and the North Amer-
ican Free Trade Agreement.
(b) In all international negotiations involving intellec-
tual property protection, the Model Intellectual Property
Agreement shall represent United States negotiating ob-
jectives.
(c) The United States Trade Representative, in con-
sultation with other appropriate United States govern-
ment agencies and the private sector, shall review periodi-
cally the Model Intellectual property Agreement to ensure
that it reflects new and emerging developments in intellec-
tual property protection and new and emerging tech-
nologies.
SEC. 207. EFFORTS BY UNITED STATES DIPLOMATS.
The Secretary of State shall instruct all heads of
United States diplomatic missions abroad to include intel-
lectual property protection as a priority objective of the
mission.
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SEC. 208. PRIVATE SECTOR INVOLVEMENT IN INTER-
NATIONAL DISPUTE SETTLEMENT.
The United States Trade Representative shall de-
velop and maintain a procedure to ensure the exchange
of information between interested United States private
sector representatives and the United States Trade Rep-
resentative in preparation for international intellectual
property-related dispute settlement proceedings to which
the United States is a party.
SEC. 209. INCENTIVES TO IMPROVE FOREIGN INTELLEC-
TUAL PROPERTY PROTECTION.
(a) Notwithstanding any other provision of United
States law, the President is authorized to undertake the
following actions, where appropriate, with respect to devel-
oping countries to encourage and help those countries to
improve their protection of intellectual property—
(1) provide Overseas Private Investment Cor-
poration insurance for intellectual property assets;
(2) require United States foreign assistance
programs to provide support for development of na-
tional intellectual property laws and regulations, as
well as for development of the infrastructure nec-
essary for protection of intellectual property;
(3) establish technical cooperation committees
on intellectual property standards within regional or-
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ganizations, such as the Sai Pacific Economic Co-
operation group; and
(4) establish, as a joint effort between the
United States government and the United States
private sector, a council to facilitate and provide in-
tellectual 
property-related 
technical 
assistance,
through the United States Agency for International
Development.
(b) Notwithstanding any other provision of United
States law, the President is authorized, where appropriate,
to require United States representatives to multilateral
lending institutions to seek establishment of programs
within these institutions to support strong intellectual
property protection in recipient countries that have fully
implemented parts I, II, and III of the Uruguay Round
Agreement on Trade-Related Aspects of Intellectual Prop-
erty Rights.
SEC. 210. INTELLECTUAL PROPERTY RIGHTS BORDER EN-
FORCEMENT MAINTENANCE.
(a) The prima facie requirements of articles 51–60
of the Uruguay Round Agreement on Trade-Related As-
pects of Intellectual Property regarding Border Measures
shall not unduly burden current intellectual property
rights owners and shall not be implemented in any way
to decrease the level of protection presently available.
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(b) The United States Trade Representative should
seek to negotiate through bilateral and multilateral agree-
ments, the earliest possible full implementation of the bor-
der enforcement provisions against the importations of in-
fringing goods enumerated in parts I, II, and III of the
Uruguay Round Agreement on Trade-Related Aspects of
Intellectual Property Rights, and if warranted, require of
foreign trading partners which chronically violate Intellec-
tual Property Rights, the establishment of an export con-
trol monitoring system. The decision to include an export
monitoring requirement is to be made by the United
States Trade Representative and should be based upon
evidence which includes, but is not limited to—
(1) United States customs Service seizure sta-
tistics demonstrating that sufficient numbers of
shipments were sized for Intellectual Property
Rights violations to indicate that an export problem
exists; and
(2) evidence provided by Intellectual Property
Rights owners demonstrating that the export of in-
fringing goods is a significant threat to the market-
ing, distribution or sale of authorized merchandise.
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TITLE III—MARKET OPENING MEASURES
SEC. 301. ACTION BY THE PRESIDENT TO OPEN FOREIGN
MARKETS.
(a) A new section 311 of the Trade Act of 1974 is
created as follows:
‘‘SEC. 311. ACTION BY THE PRESIDENT TO OPEN FOREIGN
MARKETS.
‘‘(a) The President shall have the authority to impose
civil penalties on foreign or domestic persons that engage
in restrictive business practices, including price-fixing,
bid-rigging, joint restraint of output, market allocation,
boycotts, tying arrangements, or similar activities, when
such practices foreclose United States exports or otherwise
burden or restrict United States foreign commerce.
‘‘(b) The President in consultations with the United
States Trade Representative, may initiate an investigation
to determine whether action is appropriate under para-
graph (a) upon the filing of a petition by an interested
party or on the President’s own motion.
‘‘(c) During the course of an investigation initiated
under paragraph (b), the President may require the post-
ing of bond or cash deposits, or take other provisional
measures, to secure the full cooperation of the parties to
the investigation.
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‘‘(d) The President may negotiate settlement agree-
ments with the parties to an investigation or their govern-
ment under paragraph (b) which result in the elimi-
nation—
‘‘(1) of the practice under investigation; or
‘‘(2) of the restriction on United States exports
or other burden or restriction on United States com-
merce.
‘‘(e) Civil penalties imposed by the President pursu-
ant to this section shall be levied against the United States
business operations of foreign or domestic persons found
to have engaged in restrictive business practices under this
section and shall be commensurate with the degree of fi-
nancial injury arising out of the foreclosure of United
States exports or other burden or restriction on United
States commerce.
‘‘(f) The president shall prescribe by Executive Order
appropriate rules and procedures of implementing this sec-
tion.
‘‘(g) The President shall negotiate bilateral and mul-
tilateral agreements to secure the elimination of restrictive
business practices in international commerce which have
the effect of foreclosing United States exports or otherwise
burdening or restricting United States commerce.’’.