I 
117TH CONGRESS 
1ST SESSION H. R. 6330 
To amend the Tariff Act of 1930 to provide for consideration of the effect 
of excess production capacity in nonmarket economy countries to deter-
mine threat of material injury to United States industry in countervailing 
duty and antidumping duty investigations under title VII of that Act. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 20, 2021 
Mr. HIGGINS of New York introduced the following bill; which was referred 
to the Committee on Ways and Means 
A BILL 
To amend the Tariff Act of 1930 to provide for consideration 
of the effect of excess production capacity in nonmarket 
economy countries to determine threat of material injury 
to United States industry in countervailing duty and 
antidumping duty investigations under title VII of that 
Act. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Nonmarket Economy 
Overcapacity Reform Act’’. 
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SEC. 2. EFFECT OF EXCESS PRODUCTION CAPACITY IN 
NONMARKET ECONOMY COUNTRIES TO DE-
TERMINE THREAT OF MATERIAL INJURY TO 
UNITED STATES INDUSTRY. 
(a) IN GENERAL.—Section 771(7)(F) of the Tariff 
Act of 1930 (19 U.S.C. 1677(7)(F)) is amended by adding 
at the end the following: 
‘‘(iv) EFFECT
OF
EXCESS
PRODUC-
TION CAPACITY IN NONMARKET ECONOMY 
COUNTRIES.— 
‘‘(I) IN
GENERAL.—In addition 
to consideration of the relevant eco-
nomic factors set forth in clauses (i), 
(ii), and (iii), in making a determina-
tion of whether an industry in the 
United States is threatened with ma-
terial injury by reason of imports (or 
sales for importation) of subject mer-
chandise from a nonmarket economy 
country due to excess production ca-
pacity, the Commission shall con-
sider— 
‘‘(aa) the actual or potential 
market effects of the excess pro-
duction capacity and the excess 
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production capacity in the coun-
try; and 
‘‘(bb) whether the excess 
production capacity— 
‘‘(AA) 
is 
currently 
causing or is likely in the 
foreseeable future to con-
tribute to adverse price ef-
fects in the United States 
market; 
‘‘(BB) is likely in the 
foreseeable future to con-
tribute to rapid and signifi-
cant increases in the volume 
of imports of the subject 
merchandise in the United 
States market at prices at 
which the normal value of 
the subject merchandise ex-
ceeds the export price or 
that are subsidized; or 
‘‘(CC) otherwise threat-
ens to cause material injury 
to the United States domes-
tic industry. 
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‘‘(II) ADDITIONAL FACTORS.—As 
part of its consideration of the factors 
set forth in items (aa) and (bb) of 
subclause (I), the Commission shall 
consider the following: 
‘‘(aa) Whether the excess 
production capacity is related to 
a lack of effective market dis-
ciplines that have contributed to 
increases in such capacity. 
‘‘(bb) Whether the excess 
production capacity exceeds or, 
upon 
completion 
of 
projects 
under construction to expand 
such capacity, is projected to im-
minently exceed 25 percent of the 
excess production capacity of the 
subject merchandise. 
‘‘(cc) Whether producers in 
the country have demonstrated 
an ability to increase exports of 
the subject merchandise, as evi-
denced by— 
‘‘(AA) an increase in 
exports of the subject mer-
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chandise or related products 
to third country markets; 
‘‘(BB) an annual in-
crease in the volume of ex-
ports of the subject mer-
chandise or related products 
that is greater than 10 per-
cent of the volume of ex-
ports of the subject mer-
chandise or related products 
in the preceding calendar 
year; or 
‘‘(CC) 
other 
factors 
demonstrating an ability of 
the country to increase ex-
ports of the subject mer-
chandise or related products 
globally, including to the 
United States. 
‘‘(dd) Whether the excess 
production capacity currently or 
in the future would likely con-
tribute to— 
‘‘(AA) a significant in-
crease in exports of the sub-
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ject merchandise or related 
products globally, including 
to the United States; 
‘‘(BB) 
depression 
or 
suppression of prices of the 
subject 
merchandise 
sold 
globally, including in the 
United States; 
‘‘(CC) 
reductions 
in 
United States investment or 
research and development in 
products of the same class 
or kind as the subject mer-
chandise; or 
‘‘(DD) a significant in-
crease in the United States 
market share of the subject 
merchandise as compared to 
the average share held by 
producers of the subject 
merchandise in the country 
during the 3-year period 
preceding the date of the de-
termination under clause (i). 
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‘‘(ee) Whether any or all of 
the factors described in items 
(aa), (bb), (cc), or (dd) are likely 
in the imminent future, given the 
size and extent of the current or 
projected excess production ca-
pacity and taking into account 
current and future levels of de-
mand globally, including in the 
United States. 
‘‘(ff) 
The 
standards 
of 
threat of material injury applied 
by the administering authorities 
of the country to imports of 
United States products. 
‘‘(III) 
ADDITIONAL
FACTORS 
WITH RESPECT TO EXCESS PRODUC-
TION CAPACITY.—As part of its con-
sideration of the factors set forth in 
items (aa) and (bb) of subclause (I) 
with respect to whether the excess 
production capacity is real and immi-
nent, the Commission shall consider 
the following: 
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‘‘(aa) Whether current or 
projected excess production ca-
pacity of the subject merchandise 
significantly exceeds global de-
mand, particularly if the excess 
production capacity results in 
whole or in part from increases 
in the excess production capacity 
in the country and thus creates 
an increased risk the subject 
merchandise will be imported into 
the United States market. 
‘‘(bb) The likelihood that the 
excess production capacity, in-
cluding excess production capac-
ity under construction in the 
country, would be halted, tempo-
rarily shut down, or permanently 
closed in accordance with market 
conditions in order to prevent the 
negative effects described in sub-
clauses (I) and (II), or whether 
such actions would be impractical 
given the levels of investment, fi-
nancial 
commitments, 
employ-
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lead to the imposition of du-
ties on such products and 
result in diversion of in-
creased 
exports 
of 
such 
products 
to 
the 
United 
States or other countries. 
‘‘(ee) Whether, taking into 
account the type of product, tech-
nology, United States production 
facilities, levels of United States 
investment, research and develop-
ment costs, product life cycle, 
and price sensitivities, the United 
States domestic industry is espe-
cially vulnerable to increased im-
ports of the subject merchandise 
so that injury caused by prices of 
the dumped or subsidized imports 
of the subject merchandise likely 
would occur imminently upon 
entry into the United States. 
‘‘(IV) 
DEFINITIONS.—In 
this 
clause: 
‘‘(aa) EXCESS PRODUCTION 
CAPACITY.—The 
term 
‘excess 
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production capacity’, with respect 
to subject merchandise, means 
production capacity of the subject 
merchandise on a global basis 
that exceeds estimated domestic 
demand of the subject merchan-
dise by 25 percent or more or is 
imminently likely to do so, in-
cluding 
through 
planned 
in-
creases in capacity under any 
government industrial policies, 
subsidy 
programs, 
production 
targets, 
indigenous 
innovation 
policies, or plans or directives re-
garding the development or con-
struction of such capacity. 
‘‘(bb) RELATED PRODUCT.— 
The term ‘related product’, with 
respect to subject merchandise, 
means— 
‘‘(AA) any like or di-
rectly related product within 
the scope of an investigation 
relating to the subject mer-
chandise under this title; 
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‘‘(BB) any upstream 
product used in the produc-
tion of the subject merchan-
dise and that could be used 
for purposes of exports of 
any like or directly related 
product; or 
‘‘(CC) any downstream 
product manufactured used 
in the production of the sub-
ject merchandise that could 
lead to excess production ca-
pacity and used for purposes 
of exports of any like or di-
rectly related product.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) take effect on the date of the enactment 
of this Act and apply with respect to investigations initi-
ated under title VII of the Tariff Act of 1930 on or after 
such date of enactment. 
Æ 
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