I
106TH CONGRESS
1ST SESSION
H. R. 1120
To modify the standards for responding to import surges under section
201 of the Trade Act of 1974, to establish mechanisms for import
monitoring and the prevention of circumvention of United States trade
laws, and to strengthen the enforcement of United States trade remedy
laws.
IN THE HOUSE OF REPRESENTATIVES
MARCH 16, 1999
Mr. LEVIN (for himself and Mr. HOUGHTON) introduced the following bill;
which was referred to the Committee on Ways and Means
A BILL
To modify the standards for responding to import surges
under section 201 of the Trade Act of 1974, to establish
mechanisms for import monitoring and the prevention
of circumvention of United States trade laws, and to
strengthen the enforcement of United States trade rem-
edy laws.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. AMENDMENTS TO CHAPTER 1 OF TITLE II OF
THE TRADE ACT OF 1974.
(a) TEST FOR POSITIVE ADJUSTMENTS TO IMPORT
COMPETITION.—Section 201(a) of the Trade Act of 1974
(19 U.S.C. 2251(a)) is amended by striking ‘‘be a sub-
stantial cause of serious injury, or the threat thereof,’’ and
inserting ‘‘cause or threaten to cause serious injury’’.
(b) INVESTIGATIONS AND DETERMINATIONS.—Sec-
tion 202 of such Act (19 U.S.C. 2252) is amended—
(1) in subsection (b)(1)(A), by striking ‘‘be a
substantial cause of serious injury, or the threat
thereof,’’ and inserting ‘‘cause or threaten to cause
serious injury’’;
(2) by amending subsection (b)(1)(B) to read
as follows:
‘‘(B) For purposes of this section, the term
‘cause’ refers to a cause that contributes signifi-
cantly to serious injury, or the threat thereof, to the
domestic industry but need not be equal to or great-
er than any other cause.’’;
(3) in subsection (c)—
(A) by amending paragraph (1)(A) to read
as follows:
‘‘(A) with respect to serious injury—
‘‘(i) change in the level of sales, pro-
duction, productivity, capacity utilization,
profits and losses, and employment,
‘‘(ii) the significant idling of produc-
tive facilities in the domestic industry,
‘‘(iii) the inability of a significant
number of firms to carry out domestic pro-
duction operations at a reasonable level of
profit, and
‘‘(iv) significant unemployment or
underemployment within the domestic in-
dustry;’’;
(B) in paragraph (1)(B)—
(i) in clause (iii) by striking ‘‘; and’’
and inserting ‘‘, and’’; and
(ii) by inserting after clause (iii) the
following:
‘‘(iv) foreign production capacity, for-
eign inventories, the level of demand in
third country markets, and the availability
of other export markets to absorb any ad-
ditional exports; and’’;
(C) by amending paragraph (1)(C) to read
as follows:
‘‘(C) with respect to cause—
‘‘(i) the rate, amount, and timing of
the increase in imports of the product con-
cerned in absolute and relative terms, in-
cluding whether there has been a substan-
The Commission shall include the results of its ex-
amination under subparagraph (B) in the report
submitted by the Commission to the President under
subsection (e).
‘‘(4) In making determinations under sub-
section (b), the Commission shall consider whether
any change in the volume of imports that has oc-
curred since a petition under subsection (a) was filed
or a request under subsection (b) was made is re-
lated to the pendency of the investigation, and if so,
the Commission may reduce the weight accorded to
the data for the period after the petition under sub-
section (a) was filed or the request under subsection
(b) was made in making its determination of serious
injury, or the threat thereof.’’; and
(F) in paragraph (5), as so redesignated—
(i) by striking ‘‘and (B)’’ and insert-
ing ‘‘, (B), and (C)’’; and
(ii) by striking ‘‘be a substantial cause
of serious injury, or the threat thereof,’’
and inserting ‘‘cause or threaten to cause
serious injury’’;
(4) in subsection (d)—
(A) in paragraph (1)(A)(ii), by striking
‘‘be, or likely to be a substantial cause of seri-
ous injury, or the threat thereof,’’ and inserting
‘‘cause, or be likely to cause, or threaten to
cause, or be likely to threaten to cause, serious
injury’’;
(B) in paragraph (1)(C), in the matter fol-
lowing clause (ii), by striking ‘‘a substantial
cause of serious injury, or the threat thereof,’’
and inserting ‘‘causing or threatening to cause
serious injury’’;
(C) by amending paragraph (2)(A) to read
as follows:
‘‘(2)(A) When a petition filed under subsection
(a) or a request filed under subsection (b) alleges
that critical circumstances exist and requests that
provisional relief be provided under this subsection
with respect to imports of the article identified in
the petition or request, the Commission shall, not
later than 45 days after the petition or request is
filed, determine, on the basis of available informa-
tion, whether—
‘‘(i) there is clear evidence that increased
imports (either actual or relative to domestic
production) of the article are causing or threat-
ening to cause serious injury to the domestic in-
dustry producing an article like or directly com-
petitive with the imported article; and
‘‘(ii) delay in taking action under this
chapter would cause damage to that industry
that would be difficult to repair.
In making the evaluation under clause (ii), the Com-
mission should consider, among other factors that it
considers relevant, the timing and volume of the im-
ports, including whether there has been a substantial
increase in imports over a short period of time, and
any other circumstances indicating that delay in tak-
ing action under this chapter would cause damage to
the industry that would be difficult to repair.’’; and
(D) in paragraph (2)(D), by striking ‘‘30’’
and inserting ‘‘20’’.
(c) PRESIDENTIAL DETERMINATIONS.—
(1) ACTION BY PRESIDENT.—Section 203(a) of
the Trade Act of 1974 (19 U.S.C. 2253(a)) is
amended—
(A) in paragraph (1)(A), by striking ‘‘and
provide greater economic and social benefits
than costs’’ and inserting ‘‘and will not have an
adverse impact on the United States substan-
tially out of proportion to the benefits of such
action’’;
(B) in paragraph (2)(F), by striking the
semicolon at the end of clause (iii) and insert-
ing the following:
‘‘except that the President shall give substan-
tially greater weight to the factors set out in
clause (i) than to those set out in clauses (ii)
and (iii);’’; and
(C) by amending paragraph (2)(I) to read
as follows:
‘‘(I) the potential for harm to the national
security of the United States; and’’.
(2) 
IMPLEMENTATION
OF
ACTION
REC-
OMMENDED BY COMMISSION.—(A) Section 203(c) of
the Trade Act of 1974 (19 U.S.C. 2253(c)) is
amended by striking ‘‘90’’ and inserting ‘‘60’’.
(B) Section 152(c)(1) of the Trade Act of 1974
(19 U.S.C. 2192(c)(1)) is amended by striking ‘‘not
counting any day which is excluded under section
154(b),’’ and inserting ‘‘counting all calendar days
in the case of a resolution described in subsection
(a)(1)(A), and not counting any day which is ex-
cluded under section 154(b) in the case of a resolu-
tion described in subsection (a)(1)(B),’’.
(d) CONFORMING AMENDMENTS.—
(1) Section 203(e)(6)(B) of the Trade Act of
1974 (19 U.S.C. 2253(e)(6)(B)) is amended by
striking ‘‘substantially’’.
(2) Section 264(c) of the Trade Act of 1974
(19 U.S.C. 2354(c)) is amended by striking ‘‘a sub-
stantial cause of serious injury or threat thereof’’
and inserting ‘‘causing or threatening to cause seri-
ous injury’’.
(3) Section 154(b) of the Trade Act of 1974
(19 U.S.C. 2194(b)) is amended by striking the
matter that precedes paragraph (1) and inserting
the following:
‘‘(b) The 60-day period referred to in section 203(c)
and the 90-day period referred to in section 407(c)(2)
shall be computed by excluding—’’.
SEC. 2. AMENDMENTS TO SECTION 332 OF THE TARIFF ACT
OF 1930.
Section 332 of the Tariff Act of 1930 (19 U.S.C.
1332) is amended by adding at the end the following:
‘‘(h)(1) Any entity, including a trade association,
firm, certified or recognized union, or group of workers,
which is representative of a domestic industry that pro-
duces an article that is like or directly competitive with
an imported article, may file a request with the President
pursuant to paragraph (2) for the monitoring of imports
of such article under subsection (g).
‘‘(2) If the request filed under paragraph (1) alleges
that an article is being imported into the United States
in such increased quantities as to cause serious injury, or
threat thereof, to a domestic industry, the President, with-
in 45 days after receiving the request, shall determine if
monitoring is appropriate.
‘‘(3) If the determination under paragraph (2) is af-
firmative, the President shall request, under subsection
(g), the Commission to monitor and investigate the im-
ports concerned for a period not to exceed 2 years.’’.
SEC. 3. EARLY RELEASE OF IMPORT DATA.
In order to facilitate the early identification of poten-
tially disruptive import surges, the Director of the Office
of Management and Budget may grant an exception to
the publication dates established for the release of data
on United States international trade in goods and services
in order to permit public access to preliminary inter-
national trade import data, if the Director notifies the
Congress of the early release of the data.
SEC. 4. ESTABLISHMENT OF IMPORT MONITORING CEN-
TER.
Section 301 of the Customs Procedural Reform and
Simplification Act of 1978 (19 U.S.C. 2075) is amended
by adding at the end the following:
‘‘(h) STEEL IMPORT MONITORING AND ENFORCE-
MENT SUPPORT CENTER.—There are authorized to be ap-
propriated for a Steel Import Monitoring and Enforce-
ment Support Center in the United States Customs Serv-
ice, in addition to amounts otherwise available for such
purposes, $250,000 for fiscal year 1999, and $1,000,000
for fiscal year 2000.’’.
SEC. 5. AMENDMENT TO TARIFF ACT OF 1930.
Section 484(f) of the Tariff Act of 1930 (19 U.S.C.
1484(f)) is amended—
(1) by striking ‘‘The Secretary’’ and inserting
‘‘(1) The Secretary’’; and
(2) by adding at the end the following:
‘‘(2) The Secretary of the Treasury, the Secretary of
Commerce, and the International Trade Commission shall
establish a suffix to the Harmonized Tariff Schedule of
the United States for merchandise that is subject to coun-
tervailing duty orders or antidumping duty orders under
title VII of this Act, or subject to actions by the President
under chapter 1 of title II, or section 406, of the Trade
Act of 1974.’’.
SEC. 6. PRODUCT MONITORING.
(a) IN GENERAL.—The Secretary of Commerce shall
monitor imports on a monthly basis for import surges and
potential unfair trade through the year 2000. Products to
be monitored shall be determined by the Secretary of Com-
merce based on the import surge data compiled by the
Secretary, but shall include, at a minimum, steel mill
products and other import-sensitive products identified by
United States industries or entities representative of a
United States industry that meet the necessary criteria
established by the Secretary. In determining whether to
monitor imports of a specific product, the Secretary shall
consider the percentage increase in imports, the volume
or value of imports, as appropriate, the level of import
penetration, and any other factors the Secretary considers
necessary.
(b) REPORTING REQUIREMENTS.—Within 30 days
after the release of the official December import statistics
for calendar year 1999 and for calendar year 2000, the
Secretary of Commerce shall submit a report to the Con-
gress summarizing the monitoring activities under this
section for that calendar year and identifying products to
be monitored in the next calendar year. In addition, in
the report to the Congress covering calendar year 1999,
the Secretary of Commerce shall determine whether trade
conditions during the calendar year 1999 merit extending
the import monitoring program beyond the program’s
scheduled expiration at the end of calendar year 2000.
SEC. 7. ITC INVESTIGATION OF ANTICOMPETITIVE PRAC-
TICES IN INTERNATIONAL STEEL TRADE.
(a) IN GENERAL.—Within 30 days after the date of
the enactment of this Act, the United States International
Trade Commission shall commence an investigation under
section 332 of the Tariff Act of 1930—
(1) to collect information on anticompetitive
practices in international steel trade;
(2) to assess the adverse effects of such prac-
tices on United States producers, workers, and con-
sumers;
(3) to collect information on import licensing
arrangements of other members of the World Trade
Organization; and
(4) to report to the Committee on Ways and
Means of the House of Representatives, the Com-
mittee on Finance of the Senate, and the United
States Trade Representative on its findings within 1
year after the date of the enactment of this Act.
(b) INCLUSION IN NATIONAL TRADE ESTIMATE RE-
PORT.—The United States Trade Representatives shall in-
clude the findings of the International Trade Commission
under subsection (a) in a special section of the report sub-
mitted under section 181(b) of the Trade Act of 1974
after the 1-year period beginning on the date of the enact-
ment of this Act, in which the Trade Representative shall
identify and explain any anticompetitive practices in inter-
national steel trade, evaluate the compatibility of import
licensing programs with obligations under the World
Trade Organization, and propose steps to be taken to ad-
dress anticompetitive practices and practices inconsistent
with the World Trade Organization.
(c) DEFINITIONS.—For purposes of this section, the
term ‘‘anticompetitive practices in international steel
trade’’ means—
(1) monopolies or cartels, whether or not sanc-
tioned by government authorities, which restrict the
output, delivery, or pricing of steel products;
(2) agreements between steel producers, wheth-
er or not sanctioned by government authorities, to
restrict the flow of steel products or limit price com-
petition in international steel trade; and
(3) coercion or threats by manufacturers to dis-
tributors or consumers which have the effect of re-
stricting imports of steel products.
SEC. 8. AUTHORIZATION OF APPROPRIATIONS.
(a) DEPARTMENT OF COMMERCE.—(1) There are au-
thorized to be appropriated to the Department of Com-
merce, in addition to the amounts otherwise available for
such purposes, $1,200,000 for fiscal year 1999 and
$5,200,000 for fiscal year 2000 for additional staff to con-
duct import monitoring, subsidy enforcement, and prompt
antidumping investigations under subtitle B of title VII
of the Tariff Act of 1930.
(b) USTR.—There is authorized to be appropriated
to the Office of the United States Trade Representative,
in addition to amounts otherwise available for such pur-
poses, $250,000 for fiscal year 1999 and $750,000 for fis-
cal year 2000 for additional staff—
(1) to promote and defend policy with respect
to United States import safeguards and counter-
vailing or antidumping duty actions if challenged in
the World Trade Organization; and
(2) to identify foreign trade-distorting measures
and develop policies and responsive actions to ad-
dress them.
(c) ITC.—There are authorized to be appropriated
to the Office of the United States International Trade
Commission, in addition to amounts otherwise available
for such purposes, such sums as may be necessary for fis-
cal year 1999, and such sums as may be necessary for
each of fiscal years 2000 through 2002, for additional
staff to make prompt determinations under section 202
(b) and (d) of the Trade Act of 1974.
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