104TH CONGRESS
2D SESSION
H. R. 2754
AN ACT
To approve and implement the OECD Shipbuilding
Trade Agreement.
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Shipbuilding Trade
Agreement Act’’.
SEC. 2. APPROVAL OF THE SHIPBUILDING AGREEMENT.
The Congress approves The Agreement Respecting
Normal Competitive Conditions in the Commercial Ship-
building and Repair Industry (hereafter in this Act re-
ferred to as the ‘‘Shipbuilding Agreement’’), a reciprocal
trade agreement which resulted from negotiations under
the auspices of the Organization for Economic Coopera-
tion and Development, and was entered into on December
21, 1994.
SEC. 3. EFFECTIVE DATE.
Except as provided in section 206, this Act and the
amendments made by this Act take effect on the date that
the Shipbuilding Agreement enters into force with respect
to the United States.
TITLE I—INJURIOUS PRICING
AND COUNTERMEASURES
SEC. 101. INJURIOUS PRICING AND COUNTERMEASURES
PROCEEDINGS.
The Tariff Act of 1930 is amended by adding at the
end the following new title:
‘‘TITLE 
VIII—INJURIOUS 
PRIC-
ING AND COUNTERMEASURES
RELATING TO SHIPBUILDING
‘‘Subtitle A—Injurious Pricing Charge and Countermeasures
‘‘Sec. 801. Injurious pricing charge.
‘‘Sec. 802. Procedures for initiating an injurious pricing investigation.
‘‘Sec. 803. Preliminary determinations.
‘‘Sec. 804. Termination or suspension of investigation.
‘‘Sec. 805. Final determinations.
‘‘Sec. 806. Imposition and collection of injurious pricing charge.
‘‘Sec. 807. Imposition of countermeasures.
‘‘Sec. 808. Injurious pricing petitions by third countries.
‘‘Sec. 809. Third country sales.
‘‘Subtitle B—Special Rules
‘‘Sec. 821. Export price.
‘‘Sec. 822. Normal value.
‘‘Sec. 823. Currency conversion.
‘‘Subtitle C—Procedures
‘‘Sec. 841. Hearings.
‘‘Sec. 842. Determinations on the basis of the facts available.
‘‘Sec. 843. Access to information.
‘‘Sec. 844. Conduct of investigations.
‘‘Sec. 845. Administrative action following shipbuilding agreement panel
reports.
‘‘Subtitle D—Definitions
‘‘Sec. 861. Definitions.
‘‘Subtitle A—Injurious Pricing
Charge and Countermeasures
‘‘SEC. 801. INJURIOUS PRICING CHARGE.
‘‘(a) BASIS FOR CHARGE.—If—
‘‘(1) the administering authority determines
that a foreign vessel has been sold directly or indi-
rectly to one or more United States buyers at less
than its fair value, and
‘‘(2) the Commission determines that—
‘‘(A) an industry in the United States—
‘‘(i) is or has been materially injured,
or
‘‘(ii) is threatened with material in-
jury, or
‘‘(B) the establishment of an industry in
the United States is or has been materially re-
tarded,
by reason of the sale of such vessel, then there shall
be imposed upon the foreign producer of the subject
vessel an injurious pricing charge, in an amount
equal to the amount by which the normal value ex-
ceeds the export price for the vessel. For purposes
of this subsection and section 805(b)(1), a reference
to the sale of a foreign vessel includes the creation
or transfer of an ownership interest in the vessel, ex-
cept for an ownership interest created or acquired
solely for the purpose of providing security for a
normal commercial loan.
‘‘(b) FOREIGN VESSELS NOT MERCHANDISE.—No
foreign vessel may be considered to be, or to be part of,
a class or kind of merchandise for purposes of subtitle B
of title VII.
‘‘SEC. 802. PROCEDURES FOR INITIATING AN INJURIOUS
PRICING INVESTIGATION.
‘‘(a) INITIATION BY ADMINISTERING AUTHORITY.—
‘‘(1) GENERAL RULE.—Except in the case in
which subsection (d)(6) applies, an injurious pricing
investigation shall be initiated whenever the admin-
istering authority determines, from information
available to it, that a formal investigation is war-
ranted into the question of whether the elements
necessary for the imposition of a charge under sec-
tion 801(a) exist, and whether a producer described
in section 861(17)(C) would meet the criteria of sub-
section (b)(1)(B) for a petitioner.
‘‘(2) TIME FOR INITIATION BY ADMINISTERING
AUTHORITY.—An investigation may only be initiated
under paragraph (1) within 6 months after the time
the administering authority first knew or should
have known of the sale of the vessel. Any period in
which subsection (d)(6)(A) applies shall not be in-
cluded in calculating that 6-month period.
‘‘(b) INITIATION BY PETITION.—
‘‘(1) PETITION REQUIREMENTS.—(A) Except in
a case in which subsection (d)(6) applies, an injuri-
ous pricing proceeding shall be initiated whenever an
interested party, as defined in subparagraph (C),
(D), (E), or (F) of section 861(17), files a petition
with the administering authority, on behalf of an in-
dustry, which alleges the elements necessary for the
imposition of an injurious pricing charge under sec-
tion 801(a) and the elements required under sub-
paragraph (B), (C), (D), or (E) of this paragraph,
and which is accompanied by information reasonably
available to the petitioner supporting those allega-
tions and identifying the transaction concerned.
‘‘(B)(i) If the petitioner is a producer described
in section 861(17)(C), and—
‘‘(I) if the petitioner was invited to tender
a bid on the contract at issue, the petition shall
include information indicating that the peti-
tioner actually did so and the bid of the peti-
tioner substantially met the delivery date and
technical requirements of the bid, or
‘‘(II) if the petitioner was not invited to
tender a bid, the petition shall include informa-
tion indicating that the petitioner was capable
of building the vessel concerned and, if the peti-
tioner knew or should have known of the pro-
posed purchase, it made demonstrable efforts to
conclude a sale with the United States buyer
consistent with the delivery date and technical
requirements of the buyer.
‘‘(ii) For purposes of clause (i)(II), there is a
rebuttable presumption that the petitioner knew or
should have known of the proposed purchase if it is
demonstrated that—
‘‘(I) the majority of the producers in the
industry have made efforts with the United
States buyer to conclude a sale of the subject
vessel, or
‘‘(II) general information on the sale was
available from brokers, financiers, classification
societies, charterers, trade associations, or other
entities normally involved in shipbuilding trans-
actions with whom the petitioner had regular
contacts or dealings.
‘‘(C) If the petitioner is an interested party de-
scribed in section 861(17)(D), the petition shall in-
clude information indicating that members of the
union or group of workers described in that section
are employed by a producer that meets the require-
ments of subparagraph (B) of this paragraph.
‘‘(D) If the petitioner is an interested party de-
scribed in section 861(17)(E), the petition shall in-
clude information indicating that a member of the
association described in that section is a producer
that meets the requirements of subparagraph (B) of
this paragraph.
‘‘(E) If the petitioner is an interested party de-
scribed in section 861(17)(F), the petition shall in-
clude information indicating that a member of the
association described in that section meets the re-
quirements of subparagraph (C) or (D) of this para-
graph.
‘‘(F) The petition may be amended at such
time, and upon such conditions, as the administering
authority and the Commission may permit.
‘‘(2) SIMULTANEOUS
FILING
WITH
COMMIS-
SION.—The petitioner shall file a copy of the peti-
tion with the Commission on the same day as it is
filed with the administering authority.
‘‘(3) DEADLINE FOR FILING PETITION.—
‘‘(A) DEADLINE.—(i) A petitioner to which
paragraph (1)(B)(i)(I) applies shall file the pe-
tition no later than the earlier of—
‘‘(I) 6 months after the time that the
petitioner first knew or should have known
of the sale of the subject vessel, or
‘‘(II) 6 months after delivery of the
subject vessel.