158
the petition is filed or, in the case of an
investigation 
initiated 
under 
section
802(a), within 90 days after the date on
which the Commission receives notice
from the administering authority that the
investigation has been initiated.
‘‘(b) PRELIMINARY DETERMINATION
BY AD-
MINISTERING AUTHORITY.—
‘‘(1) PERIOD OF INJURIOUS PRICING IN-
VESTIGATION.—(A) The administering au-
thority shall make a determination, based
upon the information available to it at
the time of the determination, of whether
there is a reasonable basis to believe or
suspect that the subject vessel was sold
at less than fair value.
‘‘(B) If cost data is required to deter-
mine normal value on the basis of a sale
of a foreign like vessel that has not been
delivered on or before the date on which
the administering authority initiates the
investigation, the administering author-
ity shall make its determination within
160 days after the date of delivery of the
foreign like vessel.
159
‘‘(C) If normal value is to be deter-
mined on the basis of constructed value,
the administering authority shall make
its determination within 160 days after
the date of delivery of the subject vessel.
‘‘(D) In cases in which subparagraph
(B) or (C) does not apply, the administer-
ing authority shall make its determina-
tion within 160 days after the date on
which the administering authority initi-
ates the investigation under section 802.
‘‘(E) In no event shall the administer-
ing authority make its determination be-
fore 
an 
affirmative 
determination 
is
made by the Commission under sub-
section (a).
‘‘(2) DE
MINIMIS
INJURIOUS
PRICING
MARGIN.—In 
making 
a 
determination
under this subsection, the administering
authority shall disregard any injurious
pricing margin that is de minimis. For
purposes of the preceding sentence, an
injurious pricing margin is de minimis if
the administering authority determines
160
that the margin is less than 2 percent of
the export price.
‘‘(c) EXTENSION
OF PERIOD
IN EXTRAOR-
DINARILY COMPLICATED CASES
OR
FOR GOOD
CAUSE.—
‘‘(1) IN GENERAL.—If—
‘‘(A) the administering authority
concludes that the parties concerned
are 
cooperating 
and 
determines
that—
‘‘(i) the case is extraordinarily
complicated by reason of—
‘‘(I) the novelty of the is-
sues presented, or
‘‘(II) the nature and extent
of the information required,
and
‘‘(ii) additional time is nec-
essary to make the preliminary
determination, or
‘‘(B) a party to the investigation
requests 
an 
extension 
and 
dem-
onstrates good cause for the exten-
sion,
161
then the administering authority may
postpone the time for making its prelimi-
nary determination.
‘‘(2) LENGTH
OF
POSTPONEMENT.—The
preliminary determination may be post-
poned under paragraph (1)(A) or (B) until
not later than the 190th day after—
‘‘(A) the date of delivery of the
foreign 
like 
vessel, 
if 
subsection
(b)(1)(B) applies,
‘‘(B) the date of delivery of the
subject vessel, if subsection (b)(1)(C)
applies, or
‘‘(C) the date on which the admin-
istering authority initiates an inves-
tigation under section 802, in a case
in which subsection (b)(1)(D) applies.
‘‘(3) NOTICE
OF
POSTPONEMENT.—The
administering authority shall notify the
parties to the investigation, not later
than 20 days before the date on which
the preliminary determination would oth-
erwise be required under subsection
(b)(1), if it intends to postpone making
the 
preliminary 
determination 
under
162
paragraph (1). The notification shall in-
clude an explanation of the reasons for
the postponement, and notice of the post-
ponement shall be published in the Fed-
eral Register.
‘‘(d) EFFECT OF DETERMINATION BY THE AD-
MINISTERING AUTHORITY.—If the preliminary
determination of the administering authority
under subsection (b) is affirmative, the ad-
ministering authority shall—
‘‘(1) determine an estimated injurious
pricing margin, and
‘‘(2) make available to the Commis-
sion all information upon which its deter-
mination was based and which the Com-
mission considers relevant to its injury
determination, under such procedures as
the administering authority and the Com-
mission may establish to prevent disclo-
sure, other than with the consent of the
party providing it or under protective
order, of any information to which con-
fidential treatment has been given by the
administering authority.
163
‘‘(e) NOTICE OF DETERMINATION.—Whenever
the Commission or the administering author-
ity makes a determination under this section,
the Commission or the administering author-
ity, as the case may be, shall notify the peti-
tioner, and other parties to the investigation,
and the Commission or the administering au-
thority (whichever is appropriate) of its de-
termination. The administering authority
shall include with such notification the facts
and conclusions on which its determination is
based. Not later than 5 days after the date on
which the determination is required to be
made under subsection (a)(2), the Commission
shall transmit to the administering authority
the facts and conclusions on which its deter-
mination is based.
‘‘SEC. 804. TERMINATION OR SUSPENSION OF INVESTIGA-
TION.
‘‘(a) TERMINATION OF INVESTIGATION UPON
WITHDRAWAL OF PETITION.—
‘‘(1) IN GENERAL.—Except as provided
in paragraph (2), an investigation under
this subtitle may be terminated by either
the administering authority or the Com-
164
mission, after notice to all parties to the
investigation, upon withdrawal of the pe-
tition by the petitioner.
‘‘(2) LIMITATION
ON
TERMINATION
BY
COMMISSION.—The Commission may not
terminate an investigation under para-
graph (1) before a preliminary determina-
tion is made by the administering author-
ity under section 803(b).
‘‘(b) TERMINATION OF INVESTIGATIONS INITI-
ATED BY ADMINISTERING AUTHORITY.—The ad-
ministering authority may terminate any in-
vestigation initiated by the administering au-
thority under section 802(a) after providing
notice of such termination to all parties to the
investigation.
‘‘(c) ALTERNATE EQUIVALENT REMEDY.—The
criteria 
set 
forth 
in 
subparagraphs 
(A)
through (D) of section 806(e)(1) shall apply to
any agreement that forms the basis for termi-
nation of an investigation under subsection
(a) or (b).
‘‘(d) PROCEEDINGS BY WTO MEMBERS.—
‘‘(1) SUSPENSION
OF
INVESTIGATION.—
The administering authority and the
165
Commission shall suspend an investiga-
tion under this section if a WTO member
that is not a Shipbuilding Agreement
Party initiates an antidumping proceed-
ing described in section 861(29)(A) with
respect to the sale of the subject vessel.
‘‘(2) TERMINATION OF INVESTIGATION.—
If an antidumping proceeding described
in paragraph (1) is concluded by—
‘‘(A) the imposition of antidump-
ing measures, or
‘‘(B) 
a 
negative 
determination
with respect to whether the sale is at
less than fair value or with respect to
injury,
the administering authority and the Com-
mission shall terminate the investigation
under this section.
‘‘(3) CONTINUATION OF INVESTIGATION.—
(A) If such a proceeding—
‘‘(i) is concluded by a result other
than a result described in paragraph
(2), or
166
‘‘(ii) is not concluded within one
year from the date of the initiation of
the proceeding,
then the administering authority and the
Commission shall terminate the suspen-
sion and continue the investigation. The
period in which the investigation was
suspended shall not be included in cal-
culating deadlines applicable with re-
spect to the investigation.
‘‘(B) Notwithstanding subparagraph
(A)(ii), if the proceeding is concluded by
a result described in paragraph (2)(A),
the administering authority and the Com-
mission shall terminate the investigation
under this section.
‘‘SEC. 805. FINAL DETERMINATIONS.
‘‘(a) DETERMINATIONS
BY
ADMINISTERING
AUTHORITY.—
‘‘(1) IN GENERAL.—Within 75 days after
the date of its preliminary determination
under section 803(b), the administering
authority shall make a final determina-
tion of whether the vessel which is the
subject of the investigation has been sold
167
in the United States at less than its fair
value.
‘‘(2) EXTENSION OF PERIOD FOR DETER-
MINATION.—(A) The administering author-
ity may postpone making the final deter-
mination under paragraph (1) until not
later than 290 days after—
‘‘(i) the date of delivery of the for-
eign like vessel, in an investigation to
which section 803(b)(1)(B) applies,
‘‘(ii) the date of delivery of the
subject vessel, in an investigation to
which section 803(b)(1)(C) applies, or
‘‘(iii) the date on which the ad-
ministering authority initiates the in-
vestigation under section 802, in an
investigation 
to 
which 
section
803(b)(1)(D) applies.
‘‘(B) The administering authority may
apply subparagraph (A) if a request in
writing is made by—
‘‘(i) the producer of the subject
vessel, in a proceeding in which the
preliminary determination by the ad-
168
ministering authority under section
803(b) was affirmative, or
‘‘(ii) the petitioner, in a proceed-
ing in which the preliminary deter-
mination by the administering au-
thority under section 803(b) was neg-
ative.
‘‘(3) DE
MINIMIS
INJURIOUS
PRICING
MARGIN.—In 
making 
a 
determination
under this subsection, the administering
authority shall disregard any injurious
pricing margin that is de minimis as de-
fined in section 803(b)(2).
‘‘(b) FINAL
DETERMINATION
BY
COMMIS-
SION.—
‘‘(1) IN
GENERAL.—The Commission
shall make a final determination of
whether—
‘‘(A) an industry in the United
States—
‘‘(i) is or has been materially
injured, or
‘‘(ii) is threatened with mate-
rial injury, or
169
‘‘(B) the establishment of an in-
dustry in the United States is or has
been materially retarded, by reason
of the sale of the vessel with respect
to which the administering authority
has made an affirmative determina-
tion under subsection (a)(1).
‘‘(2) PERIOD FOR INJURY DETERMINATION
FOLLOWING
AFFIRMATIVE
PRELIMINARY
DE-
TERMINATION
BY
ADMINISTERING
AUTHOR-
ITY.—If the preliminary determination by
the administering authority under sec-
tion 803(b) is affirmative, then the Com-
mission shall make the determination re-
quired by paragraph (1) before the later
of—
‘‘(A) the 120th day after the day
on which the administering authority
makes its affirmative preliminary de-
termination under section 803(b), or
‘‘(B) the 45th day after the day on
which the administering authority
makes its affirmative final determina-
tion under subsection (a).
170
‘‘(3) PERIOD FOR INJURY DETERMINATION
FOLLOWING
NEGATIVE
PRELIMINARY
DETER-
MINATION BY ADMINISTERING AUTHORITY.—If
the preliminary determination by the ad-
ministering 
authority 
under 
section
803(b) is negative, and its final deter-
mination under subsection (a) is affirma-
tive, then the final determination by the
Commission under this subsection shall
be made within 75 days after the date of
that affirmative final determination.
‘‘(c) EFFECT OF FINAL DETERMINATIONS.—
‘‘(1) EFFECT
OF
AFFIRMATIVE
DETER-
MINATION
BY
THE
ADMINISTERING
AUTHOR-
ITY.—If the determination of the admin-
istering authority under subsection (a) is
affirmative, then the administering au-
thority shall—
‘‘(A) make available to the Com-
mission all information upon which
such determination was based and
which the Commission considers rel-
evant to its determination, under
such procedures as the administering
authority and the Commission may
171
establish to prevent disclosure, other
than with the consent of the party
providing 
it 
or 
under 
protective
order, of any information to which
confidential treatment has been given
by the administering authority, and
‘‘(B) calculate an injurious pricing
charge in an amount equal to the
amount by which the normal value
exceeds the export price of the sub-
ject vessel.
‘‘(2) ISSUANCE
OF
ORDER; EFFECT
OF
NEGATIVE
DETERMINATION.—If the deter-
minations of the administering authority
and the Commission under subsections
(a)(1) and (b)(1) are affirmative, then the
administering authority shall issue an in-
jurious pricing order under section 806.
If either of such determinations is nega-
tive, the investigation shall be terminated
upon the publication of notice of that
negative determination.
‘‘(d) PUBLICATION OF NOTICE OF DETERMINA-
TIONS.—Whenever the administering author-
ity or the Commission makes a determination
172
under this section, it shall notify the peti-
tioner, other parties to the investigation, and
the other agency of its determination and of
the facts and conclusions of law upon which
the determination is based, and it shall pub-
lish notice of its determination in the Federal
Register.
‘‘(e) CORRECTION OF MINISTERIAL ERRORS.—
The administering authority shall establish
procedures for the correction of ministerial
errors in final determinations within a rea-
sonable time after the determinations are is-
sued under this section. Such procedures
shall ensure opportunity for interested par-
ties to present their views regarding any such
errors. As used in this subsection, the term
‘ministerial error’ includes errors in addition,
subtraction, or other arithmetic function,
clerical errors resulting from inaccurate
copying, duplication, or the like, and any
other type of unintentional error which the
administering authority considers ministe-
rial.
173
‘‘SEC. 806. IMPOSITION AND COLLECTION OF INJURIOUS
PRICING CHARGE.
‘‘(a) IN GENERAL.—Within 10 days after
being notified by the Commission of an af-
firmative determination under section 805(b),
the administering authority shall publish an
order imposing an injurious pricing charge
on the foreign producer of the subject vessel
which—
‘‘(1) directs the foreign producer of
the subject vessel to pay to the Secretary
of the Treasury, or the designee of the
Secretary, within 180 days from the date
of publication of the order, an injurious
pricing charge in an amount equal to the
amount by which the normal value ex-
ceeds the export price of the subject ves-
sel,
‘‘(2) includes the identity and location
of the foreign producer and a description
of the subject vessel, in such detail as the
administering authority deems necessary,
and
‘‘(3) informs the foreign producer
that—
174
‘‘(A) failure to pay the injurious
pricing charge in a timely fashion
may result in the imposition of coun-
termeasures with respect to that pro-
ducer under section 807,
‘‘(B) 
payment 
made 
after 
the
deadline described in paragraph (1)
shall be subject to interest charges at
the Commercial Interest Reference
Rate (CIRR), and
‘‘(C) the foreign producer may re-
quest an extension of the due date for
payment under subsection (b).
‘‘(b) EXTENSION OF DUE DATE FOR PAYMENT
IN EXTRAORDINARY CIRCUMSTANCES.—
‘‘(1) EXTENSION.—Upon request, the
administering authority may amend the
order under subsection (a) to set a due
date for payment or payments later than
the date that is 180 days from the date of
publication of the order, if the admin-
istering authority determines that full
payment in 180 days would render the
producer insolvent or would be incom-
patible with a judicially supervised reor-
175
ganization. When an extended payment
schedule provides for a series of partial
payments, the administering authority
shall specify the circumstances under
which default on one or more payments
will result in the imposition of counter-
measures.
‘‘(2) INTEREST CHARGES.—If a request
is granted under paragraph (1), payments
made after the date that is 180 days from
the publication of the order shall be sub-
ject to interest charges at the CIRR.
‘‘(c) NOTIFICATION OF ORDER.—The admin-
istering authority shall deliver a copy of the
order requesting payment to the foreign pro-
ducer of the subject vessel and to an appro-
priate representative of the government of
the exporting country.
‘‘(d) REVOCATION OF ORDER.—The admin-
istering authority—
‘‘(1) may revoke an injurious pricing
order if the administering authority de-
termines that producers accounting for
substantially 
all 
of 
the 
capacity 
to
produce a domestic like vessel have ex-
176
pressed a lack of interest in the order,
and
‘‘(2) shall revoke an injurious pricing
order—
‘‘(A) if the sale of the vessel that
was the subject of the injurious pric-
ing determination is voided,
‘‘(B) 
if 
the 
injurious 
pricing
charge is paid in full, including any
interest accrued for late payment,
‘‘(C) upon full implementation of
an alternative equivalent remedy de-
scribed in subsection (e), or
‘‘(D) if, with respect to the vessel
sale that was at issue in the investiga-
tion that resulted in the injurious
pricing order, an antidumping pro-
ceeding conducted by a WTO member
who is not a Shipbuilding Agreement
Party has been completed and re-
sulted in the imposition of antidump-
ing measures.
‘‘(e) ALTERNATIVE EQUIVALENT REMEDY.—
‘‘(1) AGREEMENT FOR ALTERNATE REM-
EDY.—The administering authority may
177
suspend an injurious pricing order if the
administering authority enters into an
agreement with the foreign producer sub-
ject to the order on an alternative equiv-
alent remedy, that the administering au-
thority determines—
‘‘(A) is at least as effective a rem-
edy as the injurious pricing charge,
‘‘(B) is in the public interest,
‘‘(C) can be effectively monitored
and enforced, and
‘‘(D) is otherwise consistent with
the domestic law and international
obligations of the United States.
‘‘(2) PRIOR CONSULTATIONS AND SUBMIS-
SION OF COMMENTS.—Before entering into
an agreement under paragraph (1), the
administering 
authority 
shall 
consult
with the industry, and provide for the
submission of comments by interested
parties, with respect to the agreement.
‘‘(3) MATERIAL
VIOLATIONS
OF
AGREE-
MENT.—If the injurious pricing order has
been suspended under paragraph (1), and
the administering authority determines
178
that the foreign producer concerned has
materially violated the terms of the
agreement under paragraph (1), the ad-
ministering authority shall terminate the
suspension.
‘‘SEC. 807. IMPOSITION OF COUNTERMEASURES.
‘‘(a) GENERAL RULE.—
‘‘(1) 
ISSUANCE
OF
ORDER
IMPOSING
COUNTERMEASURES.—Unless an injurious
pricing order is revoked or suspended
under section 806 (d) or (e), the admin-
istering authority shall issue an order im-
posing countermeasures.
‘‘(2) CONTENTS OF ORDER.—The coun-
termeasure order shall—
‘‘(A) state that, as provided in sec-
tion 468, a permit to lade or unlade
passengers or merchandise may not
be issued with respect to vessels con-
tracted to be built by the foreign pro-
ducer of the vessel with respect to
which an injurious pricing order was
issued under section 806, and
‘‘(B) specify the scope and dura-
tion of the prohibition on the issu-
179
ance of a permit to lade or unlade
passengers or merchandise.
‘‘(b) NOTICE OF INTENT TO IMPOSE COUNTER-
MEASURES.—
‘‘(1) GENERAL RULE.—The administer-
ing authority shall issue a notice of in-
tent to impose countermeasures not later
than 30 days before the expiration of the
time for payment specified in the injuri-
ous pricing order (or extended payment
provided for under section 806(b)), and
shall publish the notice in the Federal
Register within 7 days after issuing the
notice.
‘‘(2) ELEMENTS
OF
THE
NOTICE
OF
IN-
TENT.—The notice of intent shall contain
at least the following elements:
‘‘(A) SCOPE.—A permit to lade or
unlade passengers or merchandise
may not be issued with respect to any
vessel—
‘‘(i) built by the foreign pro-
ducer subject to the proposed
countermeasures, and
180
‘‘(ii) with respect to which the
material terms of sale are estab-
lished within a period of 4 con-
secutive years beginning on the
date that is 30 days after publica-
tion in the Fedeal Register of the
notice of intent described in para-
graph (1).
‘‘(B) DURATION.—For each vessel
described in subparagraph (A), a per-
mit to lade or unlade passengers or
merchandise may not be issued for a
period of 4 years after the date of de-
livery of the vessel.
‘‘(c) DETERMINATION TO IMPOSE COUNTER-
MEASURES; ORDER.—
‘‘(1) GENERAL RULE.—The administer-
ing authority shall, within the time speci-
fied in paragraph (2), issue a determina-
tion 
and 
order 
imposing 
counter-
measures.
‘‘(2) TIME
FOR
DETERMINATION.—The
determination shall be issued within 90
days after the date on which the notice of
intent to impose countermeasures under
181
subsection (b) is published in the Federal
Register. The administering authority
shall publish the determination, and the
order described in paragraph (4), in the
Federal Register within 7 days after issu-
ing the final determination, and shall
provide a copy of the determination and
order to the Customs Service.
‘‘(3) CONTENT OF THE DETERMINATION.—
In the determination imposing counter-
measures, the administering authority
shall determine whether, in light of all of
the circumstances, an interested party
has demonstrated that the scope or dura-
tion of the countermeasures described in
subsection (b)(2) should be narrower or
shorter than the scope or duration set
forth in the notice of intent to impose
countermeasures.
‘‘(4) ORDER.—At the same time it is-
sues its determination, the administering
authority shall issue an order imposing
countermeasures, consistent with its de-
termination.
182
‘‘(d) ADMINISTRATIVE
REVIEW
OF
DETER-
MINATION TO IMPOSE COUNTERMEASURES.—
‘‘(1) REQUEST FOR REVIEW.—Each year,
in the anniversary month of the issuance
of the order imposing countermeasures
under subsection (c), the administering
authority shall publish in the Federal
Register a notice providing that inter-
ested parties may request—
‘‘(A) a review of the scope or du-
ration of the countermeasures deter-
mined under subsection (c)(3), and
‘‘(B) a hearing in connection with
such a review.
‘‘(2) REVIEW.—If a proper request has
been received under paragraph (1), the
administering authority shall—
‘‘(A) publish notice of initiation of
a review in the Federal Register not
later than 15 days after the end of the
anniversary month of the issuance of
the order imposing countermeasures,
and
‘‘(B) review and determine wheth-
er the requesting party has dem-
183
onstrated that the scope or duration
of the countermeasures is excessive
in light of all of the circumstances.
‘‘(3) TIME
FOR
REVIEW.—The admin-
istering authority shall make its deter-
mination under paragraph (2)(B) within
90 days after the date on which the no-
tice of initiation of the review is pub-
lished. If the determination under para-
graph (2)(B) is affirmative, the admin-
istering authority shall amend the order
accordingly. The administering authority
shall promptly publish the determination
and any amendment to the order in the
Federal Register, and shall provide a
copy of any amended order to the Cus-
toms 
Service. 
In 
extraordinary 
cir-
cumstances, the administering authority
may extend the time for its determina-
tion under paragraph (2)(B) to not later
than 150 days after the date on which the
notice of initiation of the review is pub-
lished.
‘‘(e) EXTENSION OF COUNTERMEASURES.—
184
‘‘(1) REQUEST FOR EXTENSION.—Within
the time described in paragraph (2), an
interested party may file with the admin-
istering authority a request that the
scope or duration of countermeasures be
extended.
‘‘(2) DEADLINE FOR REQUEST FOR EXTEN-
SION.—
‘‘(A) REQUEST
FOR
EXTENSION
BE-
YOND 4 YEARS.—If the request seeks an
extension that would cause the scope
or duration of countermeasures to ex-
ceed 4 years, including any prior ex-
tensions, the request for extension
under paragraph (1) shall be filed not
earlier than the date that is 15
months, and not later than the date
that is 12 months, before the date
that marks the end of the period that
specifies the vessels that fall within
the scope of the order by virtue of the
establishment of material terms of
sale within that period.
‘‘(B) OTHER
REQUESTS.—If the re-
quest seeks an extension under para-
185
graph (1) other than one described in
subparagraph (A), the request shall
be filed not earlier than the date that
is 6 months, and not later than a date
that is 3 months, before the date that
marks the end of the period referred
to in subparagraph (A).
‘‘(3) DETERMINATION.—
‘‘(A) NOTICE
OF
REQUEST
FOR
EX-
TENSION.—If a proper request has
been received under paragraph (1),
the 
administering 
authority 
shall
publish notice of initiation of an ex-
tension proceeding in the Federal
Register not later than 15 days after
the applicable deadline in paragraph
(2) for requesting the extension.
‘‘(B) PROCEDURES.—
‘‘(i) REQUESTS
FOR
EXTENSION
BEYOND
YEARS.—If paragraph
(2)(A) applies to the request, the
administering authority shall con-
sult with the Trade Representa-
tive under paragraph (4).
186
‘‘(ii) 
OTHER
REQUESTS.—If
paragraph (2)(B) applies to the re-
quest, the administering author-
ity shall determine, within 90
days after the date on which the
notice of initiation of the proceed-
ing is published, whether the re-
questing party has demonstrated
that the scope or duration of the
countermeasures is inadequate in
light of all of the circumstances.
If the administering authority de-
termines that an extension is war-
ranted, it shall amend the coun-
termeasure 
order 
accordingly.
The administering authority shall
promptly publish the determina-
tion and any amendment to the
order in the Federal Register, and
shall 
provide 
a 
copy 
of 
any
amended order to the Customs
Service.
‘‘(4) CONSULTATION
WITH
TRADE
REP-
RESENTATIVE.—If paragraph (3)(B)(i) ap-
plies, the administering authority shall
187
consult with the Trade Representative
concerning whether it would be appro-
priate to request establishment of a dis-
pute settlement panel under the Ship-
building Agreement for the purpose of
seeking authorization to extend the scope
or duration of countermeasures for a pe-
riod in excess of 4 years.
‘‘(5) DECISION NOT TO REQUEST PANEL.—
If, based on consultations under para-
graph (4), the Trade Representative de-
cides not to request establishment of a
panel, the Trade Representative shall in-
form the party requesting the extension
of the countermeasures of the reasons for
its decision in writing. The decision shall
not be subject to judicial review.
‘‘(6) PANEL PROCEEDINGS.—If, based on
consultations under paragraph (4), the
Trade Representative requests the estab-
lishment of a panel under the Shipbuild-
ing Agreement to authorize an extension
of the period of countermeasures, and the
panel authorizes such an extension, the
administering authority shall promptly
188
amend the countermeasure order. The
administering authority shall publish no-
tice of the amendment in the Federal
Register.
‘‘(f) LIST OF VESSELS SUBJECT TO COUNTER-
MEASURES.—
‘‘(1) GENERAL
RULE.—At least once
during each 12-month period beginning
on the anniversary date of a determina-
tion to impose countermeasures under
this section, the administering authority
shall publish in the Federal Register a
list of all delivered vessels subject to
countermeasures under the determina-
tion.
‘‘(2) CONTENT OF LIST.—The list under
paragraph (1) shall include the following
information for each vessel, to the extent
the information is available:
‘‘(A) The name and general de-
scription of the vessel.
‘‘(B) 
The 
vessel 
identification
number.
‘‘(C) The shipyard where the ves-
sel was constructed.
189
‘‘(D) The last-known registry of
the vessel.
‘‘(E) The name and address of the
last-known owner of the vessel.
‘‘(F) The delivery date of the ves-
sel.
‘‘(G) The remaining duration of
countermeasures on the vessel.
‘‘(H) Any other identifying infor-
mation available.
‘‘(3) AMENDMENT OF LIST.—-The admin-
istering authority may amend the list
from time to time to reflect new informa-
tion that comes to its attention and shall
publish any amendments in the Federal
Register.
‘‘(4) SERVICE
OF
LIST
AND
AMEND-
MENTS.—(A) The administering authority
shall serve a copy of the list described in
paragraph (1) on—
‘‘(i) the petitioner under section
802(b),
‘‘(ii) the United States Customs
Service,
190
‘‘(iii) the Secretariat of the Orga-
nization for Economic Cooperation
and Development,
‘‘(iv) the owners of vessels on the
list,
‘‘(v) the shipyards on the list, and
‘‘(vi) the government of the coun-
try in which a shipyard on the list is
located.
‘‘(B) 
The 
administering 
authority
shall serve a copy of any amendments to
the list under paragraph (3) or subsection
(g)(3) on—
‘‘(i) the parties listed in clauses
(i), (ii), and (iii) of subparagraph (A),
and,
‘‘(ii) if the amendment affects
their interests, the parties listed in
clauses (iv), (v), and (vi) of subpara-
graph (A).
‘‘(g) ADMINISTRATIVE REVIEW
OF LIST
OF
VESSELS SUBJECT TO COUNTERMEASURES.—
‘‘(1) REQUEST FOR REVIEW.—(A) An in-
terested party may request in writing a
review of the list described in subsection
191
(f)(1), including any amendments thereto,
to determine whether—
‘‘(i) a vessel included in the list
does not fall within the scope of the
applicable countermeasure order and
should be deleted, or
‘‘(ii) a vessel not included in the
list falls within the scope of the appli-
cable 
countermeasure 
order 
and
should be added.
‘‘(B) Any request seeking a determina-
tion described in subparagraph (A)(i)
shall be made within 90 days after the
date of publication of the applicable list.
‘‘(2) REVIEW.—If a proper request for
review has been received, the administer-
ing authority shall—
‘‘(A) publish notice of initiation of
a review in the Federal Register—
‘‘(i) not later than 15 days
after the request is received, or
‘‘(ii) if the request seeks a de-
termination described in para-
graph (1)(A)(i), not later than 15
192
days after the deadline described
in paragraph (1)(B), and
‘‘(B) review and determine wheth-
er the requesting party has dem-
onstrated that—
‘‘(i) a vessel included in the
list does not qualify for such in-
clusion, or
‘‘(ii) a vessel not included in
the list qualifies for inclusion.
‘‘(3) TIME
FOR
DETERMINATION.—The
administering authority shall make its
determination under paragraph (2)(B)
within 90 days after the date on which
the notice of initiation of such review is
published. If the administering authority
determines that a vessel should be added
or deleted from the list, the administer-
ing authority shall amend the list accord-
ingly. The administering authority shall
promptly publish in the Federal Register
the determination and any such amend-
ment to the list.
‘‘(h) EXPIRATION
OF COUNTERMEASURES.—
Upon expiration of a countermeasure order
193
imposed under this section, the administering
authority shall promptly publish a notice of
the expiration in the Federal Register.
‘‘(i) SUSPENSION OR TERMINATION OF PRO-
CEEDINGS
OR COUNTERMEASURES; TEMPORARY
REDUCTION OF COUNTERMEASURES.—
‘‘(1) IF
INJURIOUS
PRICING
ORDER
RE-
VOKED
OR
SUSPENDED.—If an injurious
pricing order has been revoked or sus-
pended under section 806(d) or (e), the
administering authority shall, as appro-
priate, suspend or terminate proceedings
under this section with respect to that
order, or suspend or revoke a counter-
measure order issued with respect to that
injurious pricing order.
‘‘(2) IF
PAYMENT
DATE
AMENDED.—(A)
Subject to subparagraph (C), if the pay-
ment date under an injurious pricing
order is amended under section 845, the
administering authority shall, as appro-
priate, suspend proceedings or modify
deadlines under this section, or suspend
or amend a countermeasure order issued
194
with respect to that injurious pricing
order.
‘‘(B) In taking action under subpara-
graph (A), the administering authority
shall ensure that countermeasures are
not applied before the date that is 30
days after publication in the Federal Reg-
ister of the amended payment date.
‘‘(C) If—
‘‘(i) a countermeasure order is is-
sued under subsection (c) before an
amendment is made under section
845 to the payment date of the injuri-
ous pricing order to which the coun-
termeasure order applies, and
‘‘(ii) the administering authority
determines that the period of time be-
tween the original payment date and
the amended payment date is signifi-
cant for purposes of determining the
appropriate scope or duration of
countermeasures,
the administering authority may, in lieu
of acting under subparagraph (A), re-
institute proceedings under subsection
195
(c) for purposes of issuing a new deter-
mination under that subsection.
‘‘(j) COMMENT AND HEARING.—In the course
of any proceeding under subsection (c), (d),
(e), or (g), the administering authority—
‘‘(1) shall solicit comments from inter-
ested parties, and
‘‘(2)(A) in a proceeding under sub-
section (c) or (d), upon the request of an
interested party, shall hold a hearing in
accordance with section 841(b) in connec-
tion with that proceeding, or
‘‘(B) in a proceeding under subsection
(e) or (g), upon the request of an inter-
ested party, may hold a hearing in ac-
cordance with section 841(b) in connec-
tion with that proceeding.
‘‘SEC. 808. INJURIOUS PRICING PETITIONS BY THIRD COUN-
TRIES.
‘‘(a) FILING OF PETITION.—The government
of a Shipbuilding Agreement Party may file
with the Trade Representative a petition re-
questing that an investigation be conducted
to determine if—
196
‘‘(1) a vessel from another Shipbuild-
ing Agreement Party has been sold in the
United States at less than fair value, and
‘‘(2) an industry, in the petitioning
country, producing or capable of produc-
ing a like vessel is materially injured by
reason of such sale.
‘‘(b) INITIATION.—The Trade Representa-
tive, after consultation with the administer-
ing authority and the Commission and obtain-
ing the approval of the Parties Group under
the Shipbuilding Agreement, shall determine
whether to initiate an investigation described
in subsection (a).
‘‘(c) DETERMINATIONS.—Upon initiation of
an investigation under subsection (a), the
Trade Representative shall request the fol-
lowing determinations be made in accordance
with substantive and procedural require-
ments specified by the Trade Representative,
notwithstanding any other provision of this
title:
‘‘(1) The administering authority shall
determine whether the subject vessel has
been sold at less than fair value.
197
‘‘(2) The Commission shall determine
whether an industry in the petitioning
country is materially injured by reason of
the sale of the subject vessel in the Unit-
ed States.
‘‘(d) PUBLIC
COMMENT.—An opportunity
for public comment shall be provided, as ap-
propriate—
‘‘(1) by the Trade Representative, in
making the determinations required by
subsection (b), and
‘‘(2) by the administering authority
and the Commission, in making the deter-
minations required by subsection (c).
‘‘(e) ISSUANCE
OF ORDER.—If the admin-
istering authority makes an affirmative deter-
mination under paragraph (1) of subsection
(c), and the Commission makes an affirmative
determination under paragraph (2) of sub-
section 
(c), 
the 
administering 
authority
shall—
‘‘(1) order an injurious pricing charge
in accordance with section 806, and
‘‘(2) make such determinations and
take such other actions as are required
198
by sections 806 and 807, as if affirmative
determinations had been made under
subsections (a) and (b) of section 805.
‘‘(f) REVIEWS
OF
DETERMINATIONS.—For
purposes of review under section 516B, if an
order is issued under subsection (e)—
‘‘(1) the final determinations of the
administering authority and the Commis-
sion under subsection (c) shall be treated
as final determinations made under sec-
tion 805, and
‘‘(2) determinations of the administer-
ing authority under subsection (e)(2)
shall be treated as determinations made
under section 806 or 807, as the case may
be.
‘‘(g) ACCESS TO INFORMATION.—Section 843
shall apply to investigations under this sec-
tion, to the extent specified by the Trade Rep-
resentative, after consultation with the ad-
ministering authority and the Commission.
‘‘SEC. 809. THIRD COUNTRY SALES.
‘‘(a) FILING OF PETITION.—Any interested
party that would be eligible to file a petition
under section 802(b)(1) with respect to a sale
199
if such sale had been to a United States buyer
may, with respect to a sale of a vessel by a for-
eign producer in a Shipbuilding Agreement
Party to a buyer in a third country that is a
Shipbuilding Agreement Party, file with the
Trade Representative a petition alleging
that—
‘‘(1) such vessel has been sold at less
than fair value; and
‘‘(2) the industry in the United States
producing or capable of producing a like
vessel is materially injured by reason of
such sale.
‘‘(b) DETERMINATION.—Upon receipt of a
petition under subsection (a), the Trade Rep-
resentative shall request that the following
determinations be made in accordance with
substantive and procedural requirements
specified by the Trade Representative, not-
withstanding any other provision of this title:
‘‘(1) The administering authority shall
determine whether there is reasonable
cause to believe that the subject vessel
has been sold at less than fair value.
200
‘‘(2) The Commission shall determine
whether there is reasonable cause to be-
lieve that the industry in the United
States is materially injured by reason of
such sale.
‘‘(c) COMPLAINT
BY
TRADE
REPRESENTA-
TIVE.—If the administering authority makes
an affirmative determination under para-
graph (1) of subsection (b), and the Commis-
sion makes an affirmative determination
under paragraph (2) of subsection (b), the
Trade Representative shall make application
to the country of the buyer of the subject ves-
sel for an injurious pricing action and relief
similar to that available under section 808.
The Trade Representative shall advise the pe-
titioner of the proceedings undertaken by the
third country in response to such application
and shall permit the petitioner to participate
in such proceedings to the greatest extent
practicable.
‘‘Subtitle B—Special Rules
‘‘SEC. 821. EXPORT PRICE.
‘‘(a) EXPORT PRICE.—For purposes of this
title, the term ‘export price’ means the price
201
at which the subject vessel is first sold (or
agreed to be sold) by or for the account of the
foreign producer of the subject vessel to an
unaffiliated United States buyer. The term
‘sold (or agreed to be sold) by or for the ac-
count of the foreign producer’ includes any
transfer of an ownership interest, including
by way of lease or long-term bareboat charter,
in conjunction with the original transfer from
the producer, either directly or indirectly, to
a United States buyer.
‘‘(b) ADJUSTMENTS TO EXPORT PRICE.—The
price used to establish export price shall be—
‘‘(1) increased by the amount of any
import duties imposed by the country of
exportation which have been rebated, or
which have not been collected, by reason
of the exportation of the subject vessel,
and
‘‘(2) reduced by—
‘‘(A) the amount, if any, included
in such price, attributable to any ad-
ditional costs, charges, or expenses
which are incident to bringing the
subject vessel from the shipyard in
202
the exporting country to the place of
delivery,
‘‘(B) the amount, if included in
such price, of any export tax, duty, or
other charge imposed by the export-
ing country on the exportation of the
subject vessel, and
‘‘(C) all other expenses incidental
to placing the vessel in condition for
delivery to the buyer.
‘‘SEC. 822. NORMAL VALUE.
‘‘(a) 
DETERMINATION.—In 
determining
under this title whether a subject vessel has
been sold at less than fair value, a fair com-
parison shall be made between the export
price and normal value of the subject vessel.
In order to achieve a fair comparison with the
export price, normal value shall be deter-
mined as follows:
‘‘(1) 
DETERMINATION
OF
NORMAL
VALUE.—
‘‘(A) 
IN
GENERAL.—The 
normal
value of the subject vessel shall be
the price described in subparagraph
(B), at a time reasonably correspond-
203
ing to the time of the sale used to de-
termine the export price under sec-
tion 821(a).
‘‘(B) PRICE.—The price referred to
in subparagraph (A) is—
‘‘(i) the price at which a for-
eign like vessel is first sold in the
exporting country, in the ordi-
nary course of trade and, to the
extent practicable, at the same
level of trade, or
‘‘(ii) in a case to which sub-
paragraph (C) applies, the price
at which a foreign like vessel is so
sold for consumption in a country
other than the exporting country
or the United States, if—
‘‘(I) such price is rep-
resentative, and
‘‘(II) the administering au-
thority does not determine
that the particular market sit-
uation in such other country
prevents a proper comparison
with the export price.
204
‘‘(C) THIRD
COUNTRY
SALES.—This
subparagraph applies when—
‘‘(i) a foreign like vessel is not
sold in the exporting country as
described in subparagraph (B)(i),
or
‘‘(ii) the particular market sit-
uation in the exporting country
does not permit a proper com-
parison with the export price.
‘‘(D) CONTEMPORANEOUS SALE.—For
purposes of subparagraph (A), ‘a time
reasonably corresponding to the time
of the sale’ means within 3 months
before or after the sale of the subject
vessel or, in the absence of such sales,
such longer period as the administer-
ing authority determines would be
appropriate.
‘‘(2) 
FICTITIOUS
MARKETS.—No 
pre-
tended sale, and no sale intended to es-
tablish a fictitious market, shall be taken
into 
account 
in 
determining 
normal
value.
205
‘‘(3) USE
OF
CONSTRUCTED
VALUE.—If
the administering authority determines
that the normal value of the subject ves-
sel cannot be determined under para-
graph (1)(B) or (1)(C), then the normal
value of the subject vessel shall be the
constructed value of that vessel, as deter-
mined under subsection (e).
‘‘(4) INDIRECT SALES.—If a foreign like
vessel is sold through an affiliated party,
the price at which the foreign like vessel
is sold by such affiliated party may be
used in determining normal value.
‘‘(5) 
ADJUSTMENTS.—The 
price 
de-
scribed in paragraph (1)(B) shall be—
‘‘(A) reduced by—
‘‘(i) the amount, if any, in-
cluded in the price described in
paragraph (1)(B), attributable to
any costs, charges, and expenses
incident to bringing the foreign
like vessel from the shipyard to
the place of delivery to the pur-
chaser,
206
‘‘(ii) the amount of any taxes
imposed directly upon the foreign
like vessel or components thereof
which 
have 
been 
rebated, 
or
which have not been collected, on
the subject vessel, but only to the
extent that such taxes are added
to or included in the price of the
foreign like vessel, and
‘‘(iii) the amount of all other
expenses incidental to placing the
foreign like vessel in condition
for delivery to the buyer, and
‘‘(B) increased or decreased by
the amount of any difference (or lack
thereof) between the export price and
the price described in paragraph
(1)(B) (other than a difference for
which allowance is otherwise pro-
vided under this section) that is es-
tablished to the satisfaction of the ad-
ministering authority to be wholly or
partly due to—
‘‘(i) physical differences be-
tween the subject vessel and the
207
vessel used in determining nor-
mal value, or
‘‘(ii) other differences in the
circumstances of sale.
‘‘(6) 
ADJUSTMENTS
FOR
LEVEL
OF
TRADE.—The price described in para-
graph (1)(B) shall also be increased or de-
creased to make due allowance for any
difference (or lack thereof) between the
export price and the price described in
paragraph (1)(B) (other than a difference
for which allowance is otherwise made
under this section) that is shown to be
wholly or partly due to a difference in
level of trade between the export price
and normal value, if the difference in
level of trade—
‘‘(A) involves the performance of
different selling activities, and
‘‘(B) is demonstrated to affect
price comparability, based on a pat-
tern of consistent price differences
between sales at different levels of
trade in the country in which normal
value is determined.
208
In a case described in the preceding sen-
tence, the amount of the adjustment shall
be based on the price differences be-
tween the two levels of trade in the coun-
try in which normal value is determined.
‘‘(7) ADJUSTMENTS
TO
CONSTRUCTED
VALUE.—Constructed value as determined
under subsection (d) may be adjusted, as
appropriate, pursuant to this subsection.
‘‘(b) SALES AT LESS THAN COST OF PRODUC-
TION.—
‘‘(1) 
DETERMINATION; 
SALES
DIS-
REGARDED.—Whenever the administering
authority has reasonable grounds to be-
lieve or suspect that the sale of the for-
eign like vessel under consideration for
the determination of normal value has
been made at a price which represents
less than the cost of production of the
foreign like vessel, the administering au-
thority shall determine whether, in fact,
such sale was made at less than the cost
of production. If the administering au-
thority determines that the sale was
made at less than the cost of production
209
and was not at a price which permits re-
covery of all costs within 5 years, such
sale may be disregarded in the deter-
mination of normal value. Whenever such
a sale is disregarded, normal value shall
be based on another sale of a foreign like
vessel in the ordinary course of trade. If
no sales made in the ordinary course of
trade remain, the normal value shall be
based on the constructed value of the
subject vessel.
‘‘(2) DEFINITIONS AND SPECIAL RULES.—
For purposes of this subsection:
‘‘(A) REASONABLE GROUNDS TO BE-
LIEVE OR SUSPECT.—There are reason-
able grounds to believe or suspect
that the sale of a foreign like vessel
was made at a price that is less than
the cost of production of the vessel, if
an interested party described in sub-
paragraph (C), (D), (E), or (F) of sec-
tion 861(17) provides information,
based upon observed prices or con-
structed prices or costs, that the sale
of the foreign like vessel under con-
210
sideration for the determination of
normal value has been made at a
price which represents less than the
cost of production of the vessel.
‘‘(B) RECOVERY
OF
COSTS.—If the
price is below the cost of production
at the time of sale but is above the
weighted average cost of production
for the period of investigation, such
price shall be considered to provide
for recovery of costs within 5 years.
‘‘(3) CALCULATION OF COST OF PRODUC-
TION.—For purposes of this section, the
cost of production shall be an amount
equal to the sum of—
‘‘(A) the cost of materials and of
fabrication or other processing of any
kind employed in producing the for-
eign like vessel, during a period
which would ordinarily permit the
production of that vessel in the ordi-
nary course of business, and
‘‘(B) an amount for selling, gen-
eral, 
and 
administrative 
expenses
based on actual data pertaining to
211
the production and sale of the foreign
like vessel by the producer in ques-
tion.
For purposes of subparagraph (A), if the
normal value is based on the price of the
foreign like vessel sold in a country other
than the exporting country, the cost of
materials shall be determined without re-
gard to any internal tax in the exporting
country imposed on such materials or on
their disposition which are remitted or
refunded upon exportation.
‘‘(c) NONMARKET ECONOMY COUNTRIES.—
‘‘(1) IN GENERAL.—If—
‘‘(A) the subject vessel is pro-
duced in a nonmarket economy coun-
try, and
‘‘(B) the administering authority
finds that available information does
not permit the normal value of the
subject vessel to be determined under
subsection (a),
the administering authority shall deter-
mine the normal value of the subject ves-
sel on the basis of the value of the factors
212
of production utilized in producing the
vessel and to which shall be added an
amount for general expenses and profit
plus the cost of expenses incidental to
placing the vessel in a condition for de-
livery to the buyer. Except as provided in
paragraph (2), the valuation of the fac-
tors of production shall be based on the
best available information regarding the
values of such factors in a market econ-
omy country or countries considered to
be appropriate by the administering au-
thority.
‘‘(2) EXCEPTION.—If the administering
authority finds that the available infor-
mation is inadequate for purposes of de-
termining the normal value of the subject
vessel under paragraph (1), the admin-
istering authority shall determine the
normal value on the basis of the price at
which a vessel that is—
‘‘(A) comparable to the subject
vessel, and
‘‘(B) produced in one or more
market economy countries that are at
213
a level of economic development com-
parable to that of the nonmarket
economy country,
is sold in other countries, including the
United States.
‘‘(3) 
FACTORS
OF
PRODUCTION.—For
purposes of paragraph (1), the factors of
production utilized in producing the ves-
sel include, but are not limited to—
‘‘(A) hours of labor required,
‘‘(B) quantities of raw materials
employed,
‘‘(C) amounts of energy and other
utilities consumed, and
‘‘(D) representative capital cost,
including depreciation.
‘‘(4) VALUATION OF FACTORS OF PRODUC-
TION.—The administering authority, in
valuing factors of production under para-
graph (1), shall utilize, to the extent pos-
sible, the prices or costs of factors of pro-
duction in one or more market economy
countries that are—
214
‘‘(A) at a level of economic devel-
opment comparable to that of the
nonmarket economy country, and
‘‘(B) significant producers of com-
parable vessels.
‘‘(d) SPECIAL RULE
FOR CERTAIN MULTI-
NATIONAL CORPORATIONS.—Whenever, in the
course of an investigation under this title, the
administering authority determines that—
‘‘(1) the subject vessel was produced
in facilities which are owned or con-
trolled, directly or indirectly, by a per-
son, firm, or corporation which also owns
or controls, directly or indirectly, other
facilities for the production of a foreign
like vessel which are located in another
country or countries,
‘‘(2) subsection (a)(1)(C) applies, and
‘‘(3) the normal value of a foreign like
vessel produced in one or more of the fa-
cilities outside the exporting country is
higher than the normal value of the for-
eign like vessel produced in the facilities
located in the exporting country,
215
the administering authority shall determine
the normal value of the subject vessel by ref-
erence to the normal value at which a foreign
like vessel is sold from one or more facilities
outside the exporting country. The admin-
istering authority, in making any determina-
tion under this subsection, shall make adjust-
ments for the difference between the costs of
production (including taxes, labor, materials,
and overhead) of the foreign like vessel pro-
duced in facilities outside the exporting coun-
try and costs of production of the foreign like
vessel produced in facilities in the exporting
country, if such differences are demonstrated
to its satisfaction.
‘‘(e) CONSTRUCTED VALUE.—
‘‘(1) IN GENERAL.—For purposes of this
title, the constructed value of a subject
vessel shall be an amount equal to the
sum of—
‘‘(A) the cost of materials and fab-
rication or other processing of any
kind employed in producing the sub-
ject vessel, during a period which
would ordinarily permit the produc-
216
tion of the vessel in the ordinary
course of business, and
‘‘(B)(i) the actual amounts in-
curred and realized by the foreign
producer of the subject vessel for sell-
ing, general, and administrative ex-
penses, and for profits, in connection
with the production and sale of a for-
eign like vessel, in the ordinary
course of trade, in the domestic mar-
ket of the country of origin of the
subject vessel, or
‘‘(ii) if actual data are not avail-
able with respect to the amounts de-
scribed in clause (i), then—
‘‘(I) the actual amounts in-
curred and realized by the for-
eign producer of the subject ves-
sel for selling, general, and ad-
ministrative expenses, and for
profits, in connection with the
production and sale of the same
general category of vessel in the
domestic market of the country of
origin of the subject vessel,
217
‘‘(II) the weighted average of
the actual amounts incurred and
realized 
by 
producers 
in 
the
country of origin of the subject
vessel (other than the producer of
the subject vessel) for selling,
general, and administrative ex-
penses, and for profits, in connec-
tion with the production and sale
of a foreign like vessel, in the or-
dinary course of trade, in the do-
mestic market, or
‘‘(III) if data is not available
under subclause (I) or (II), the
amounts incurred and realized
for selling, general, and adminis-
trative expenses, and for profits,
based on any other reasonable
method, except that the amount
allowed for profit may not exceed
the amount normally realized by
foreign producers (other than the
producer of the subject vessel) in
connection with the sale of ves-
sels in the same general category
218
of vessel as the subject vessel in
the domestic market of the coun-
try of origin of the subject vessel.
The profit shall, for purposes of this
paragraph, be based on the average prof-
it realized over a reasonable period of
time before and after the sale of the sub-
ject vessel and shall reflect a reasonable
profit at the time of such sale. For pur-
poses of the preceding sentence, a ‘rea-
sonable period of time’ shall not, except
where otherwise appropriate, exceed 6
months before, or 6 months after, the sale
of the subject vessel. In calculating profit
under this paragraph, any distortion
which would result in other than a profit
which is reasonable at the time of the
sale shall be eliminated.
‘‘(2) COSTS
AND
PROFITS
BASED
ON
OTHER REASONABLE METHODS.—When costs
and profits are determined under para-
graph (1)(B)(ii)(III), such determination
shall, except where otherwise appro-
priate, be based on appropriate export
sales by the producer of the subject ves-
219
sel or, absent such sales, to export sales
by other producers of a foreign like ves-
sel or the same general category of vessel
as the subject vessel in the country of ori-
gin of the subject vessel.
‘‘(3) COSTS
OF
MATERIALS.—For pur-
poses of paragraph (1)(A), the cost of ma-
terials shall be determined without re-
gard to any internal tax in the exporting
country imposed on such materials or
their disposition which are remitted or
refunded upon exportation of the subject
vessel produced from such materials.
‘‘(f) SPECIAL RULES
FOR CALCULATION
OF
COST OF PRODUCTION AND FOR CALCULATION OF
CONSTRUCTED VALUE.—For purposes of sub-
sections (b) and (e)—
‘‘(1) COSTS.—
‘‘(A) IN GENERAL.—Costs shall nor-
mally be calculated based on the
records of the foreign producer of the
subject vessel, if such records are
kept in accordance with the generally
accepted accounting principles of the
exporting country and reasonably re-
220
flect the costs associated with the
production and sale of the vessel. The
administering authority shall con-
sider all available evidence on proper
allocation of costs, including that
which is made available by the for-
eign producer on a timely basis, if
such allocations have been histori-
cally used by the foreign producer, in
particular 
for 
establishing 
appro-
priate amortization and depreciation
periods, and allowances for capital
expenditures and other development
costs.
‘‘(B) NONRECURRING COSTS.—Costs
shall be adjusted appropriately for
those nonrecurring costs that benefit
current or future production, or both.
‘‘(C) STARTUP COSTS.—
‘‘(i) IN
GENERAL.—Costs shall
be adjusted appropriately for cir-
cumstances in which costs in-
curred during the time period
covered by the investigation are
affected by startup operations.
221
‘‘(ii) STARTUP OPERATIONS.—Ad-
justments shall be made for start-
up operations only where—
‘‘(I) a producer is using
new production facilities or
producing a new type of ves-
sel that requires substantial
additional investment, and
‘‘(II) production levels are
limited by technical factors
associated 
with 
the 
initial
phase of commercial produc-
tion.
For purposes of subclause (II), the
initial phase of commercial pro-
duction ends at the end of the
startup period. In determining
whether commercial production
levels have been achieved, the ad-
ministering authority shall con-
sider factors unrelated to startup
operations that might affect the
volume of production processed,
such as demand, seasonality, or
business cycles.
222
‘‘(iii) ADJUSTMENT FOR STARTUP
OPERATIONS.—The adjustment for
startup operations shall be made
by substituting the unit produc-
tion costs incurred with respect
to the vessel at the end of the
startup period for the unit pro-
duction costs incurred during the
startup period. If the startup pe-
riod extends beyond the period of
the investigation under this title,
the administering authority shall
use the most recent cost of pro-
duction data that it reasonably
can obtain, analyze, and verify
without delaying the timely com-
pletion of the investigation. For
purposes of this subparagraph,
the startup period ends at the
point at which the level of com-
mercial production that is char-
acteristic of the vessel, the pro-
ducer, 
or 
the 
industry 
is
achieved.
223
‘‘(D) COSTS DUE TO EXTRAORDINARY
CIRCUMSTANCES
NOT
INCLUDED.—Costs
shall not include actual costs which
are 
due 
to 
extraordinary 
cir-
cumstances (including, but not lim-
ited to, labor disputes, fire, and natu-
ral disasters) and which are signifi-
cantly over the cost increase which
the shipbuilder could have reason-
ably anticipated and taken into ac-
count at the time of sale.
‘‘(2) 
TRANSACTIONS
DISREGARDED.—A
transaction directly or indirectly be-
tween affiliated persons may be dis-
regarded if, in the case of any element of
value required to be considered, the
amount representing that element does
not fairly reflect the amount usually re-
flected in sales of a like vessel in the mar-
ket under consideration. If a transaction
is disregarded under the preceding sen-
tence and no other transactions are avail-
able for consideration, the determination
of the amount shall be based on the infor-
mation available as to what the amount
224
would have been if the transaction had
occurred between persons who are not
affiliated.
‘‘(3) MAJOR INPUT RULE.—If, in the case
of a transaction between affiliated per-
sons involving the production by one of
such persons of a major input to the sub-
ject vessel, the administering authority
has reasonable grounds to believe or sus-
pect that an amount represented as the
value of such input is less than the cost
of production of such input, then the ad-
ministering authority may determine the
value of the major input on the basis of
the information available regarding such
cost of production, if such cost is greater
than the amount that would be deter-
mined for such input under paragraph
(2).
‘‘SEC. 823. CURRENCY CONVERSION.
‘‘(a) IN GENERAL.—In an injurious pricing
proceeding under this title, the administering
authority shall convert foreign currencies
into United States dollars using the exchange
rate in effect on the date of sale of the subject
225
vessel, except that if it is established that a
currency transaction on forward markets is
directly linked to a sale under consideration,
the exchange rate specified with respect to
such foreign currency in the forward sale
agreement shall be used to convert the for-
eign currency.
‘‘(b) DATE OF SALE.—For purposes of this
section, ‘date of sale’ means the date of the
contract of sale or, where appropriate, the
date on which the material terms of sale are
otherwise established. If the material terms of
sale are significantly changed after such date,
the date of sale is the date of such change. In
the case of such a change in the date of sale,
the administering authority shall make ap-
propriate adjustments to take into account
any unreasonable effect on the injurious pric-
ing margin due only to fluctuations in the ex-
change rate between the original date of sale
and the new date of sale.
‘‘Subtitle C—Procedures
‘‘SEC. 841. HEARINGS.
‘‘(a) UPON REQUEST.—The administering
authority and the Commission shall each hold
226
a hearing in the course of an investigation
under this title, upon the request of any party
to the investigation, before making a final de-
termination under section 805.
‘‘(b) PROCEDURES.—Any hearing required
or permitted under this title shall be con-
ducted after notice published in the Federal
Register, and a transcript of the hearing shall
be prepared and made available to the public.
The hearing shall not be subject to the provi-
sions of subchapter II of chapter 5 of title 5,
United States Code, or to section 702 of such
title.
‘‘SEC. 842. DETERMINATIONS ON THE BASIS OF THE FACTS
AVAILABLE.
‘‘(a) IN GENERAL.—If—
‘‘(1) necessary information is not
available on the record, or
‘‘(2) an interested party or any other
person—
‘‘(A) withholds information that
has been requested by the admin-
istering authority or the Commission
under this title,
227
‘‘(B) fails to provide such informa-
tion by the deadlines for the submis-
sion of the information or in the form
and manner requested, subject to
subsections (b)(1) and (d) of section
844,
‘‘(C) significantly impedes a pro-
ceeding under this title, or
‘‘(D) provides such information
but the information cannot be veri-
fied as provided in section 844(g),
the administering authority and the Com-
mission shall, subject to section 844(c),
use the facts otherwise available in
reaching the applicable determination
under this title.
‘‘(b) ADVERSE INFERENCES.—If the admin-
istering authority or the Commission (as the
case may be) finds that an interested party
has failed to cooperate by not acting to the
best of its ability to comply with a request for
information from the administering authority
or the Commission, the administering author-
ity or the Commission (as the case may be),
in reaching the applicable determination
228
under this title, may use an inference that is
adverse to the interests of that party in select-
ing from among the facts otherwise available.
Such adverse inference may include reliance
on information derived from—
‘‘(1) the petition, or
‘‘(2) any other information placed on
the record.
‘‘(c) CORROBORATION OF SECONDARY INFOR-
MATION.—When the administering authority
or the Commission relies on secondary infor-
mation rather than on information obtained
in the course of an investigation under this
title, the administering authority and the
Commission, as the case may be, shall, to the
extent practicable, corroborate that informa-
tion from independent sources that are rea-
sonably at their disposal.
‘‘SEC. 843. ACCESS TO INFORMATION.
‘‘(a) INFORMATION GENERALLY MADE AVAIL-
ABLE.—
‘‘(1) PROGRESS
OF
INVESTIGATION
RE-
PORTS.—The administering authority and
the Commission shall, from time to time
upon request, inform the parties to an in-
229
vestigation 
under 
this 
title 
of 
the
progress of that investigation.
‘‘(2) EX PARTE MEETINGS.—The admin-
istering authority and the Commission
shall maintain a record of any ex parte
meeting between—
‘‘(A) interested parties or other
persons providing factual informa-
tion in connection with a proceeding
under this title, and
‘‘(B) the person charged with
making the determination, or any
person charged with making a final
recommendation to that person, in
connection with that proceeding,
if information relating to that proceeding
was presented or discussed at such meet-
ing. The record of such an ex parte meet-
ing shall include the identity of the per-
sons present at the meeting, the date,
time, and place of the meeting, and a
summary of the matters discussed or sub-
mitted. The record of the ex parte meet-
ing shall be included in the record of the
proceeding.
230
‘‘(3) SUMMARIES; NON-PROPRIETARY SUB-
MISSIONS.—The administering authority
and the Commission shall disclose—
‘‘(A) any proprietary information
received in the course of a proceed-
ing under this title if it is disclosed in
a form which cannot be associated
with, or otherwise be used to identify,
operations of a particular person, and
‘‘(B) any information submitted in
connection with a proceeding which
is not designated as proprietary by
the person submitting it.
‘‘(4) MAINTENANCE OF PUBLIC RECORD.—
The administering authority and the
Commission shall maintain and make
available for public inspection and copy-
ing a record of all information which is
obtained by the administering authority
or the Commission, as the case may be, in
a proceeding under this title to the ex-
tent that public disclosure of the infor-
mation is not prohibited under this chap-
ter or exempt from disclosure under sec-
tion 552 of title 5, United States Code.
231
‘‘(b) PROPRIETARY INFORMATION.—
‘‘(1) 
PROPRIETARY
STATUS
MAIN-
TAINED.—
‘‘(A) IN GENERAL.—Except as pro-
vided in subsection (a)(4) and sub-
section (c), information submitted to
the administering authority or the
Commission which is designated as
proprietary by the person submitting
the information shall not be disclosed
to any person without the consent of
the person submitting the informa-
tion, other than—
‘‘(i) to an officer or employee
of the administering authority or
the Commission who is directly
concerned with carrying out the
investigation in connection with
which the information is submit-
ted 
or 
any 
other 
proceeding
under this title covering the same
subject vessel, or
‘‘(ii) to an officer or employee
of the United States Customs
Service who is directly involved
232
in conducting an investigation re-
garding fraud under this title.
‘‘(B) ADDITIONAL
REQUIREMENTS.—
The administering authority and the
Commission shall require that infor-
mation for which proprietary treat-
ment is requested be accompanied
by—
‘‘(i) either—
‘‘(I) a nonproprietary sum-
mary in sufficient detail to
permit a reasonable under-
standing of the substance of
the information submitted in
confidence, or
‘‘(II) a statement that the
information is not susceptible
to summary, accompanied by
a statement of the reasons in
support of the contention, and
‘‘(ii) either—
‘‘(I) 
a 
statement 
which
permits the administering au-
thority or the Commission to
release under administrative
233
protective order, in accord-
ance with subsection (c), the
information submitted in con-
fidence, or
‘‘(II) a statement to the ad-
ministering authority or the
Commission that the business
proprietary information is of
a type that should not be re-
leased under administrative
protective order.
‘‘(2) 
UNWARRANTED
DESIGNATION.—If
the administering authority or the Com-
mission determines, on the basis of the
nature and extent of the information or
its availability from public sources, that
designation of any information as propri-
etary is unwarranted, then it shall notify
the person who submitted it and ask for
an explanation of the reasons for the des-
ignation. Unless that person persuades
the administering authority or the Com-
mission that the designation is war-
ranted, or withdraws the designation, the
administering authority or the Commis-
234
sion, as the case may be, shall return it to
the party submitting it. In a case in
which the administering authority or the
Commission returns the information to
the person submitting it, the person may
thereafter submit other material concern-
ing the subject matter of the returned in-
formation if the submission is made with-
in the time otherwise provided for sub-
mitting such material.
‘‘(c) LIMITED DISCLOSURE OF CERTAIN PRO-
PRIETARY
INFORMATION
UNDER
PROTECTIVE
ORDER.—
‘‘(1) DISCLOSURE BY ADMINISTERING AU-
THORITY OR COMMISSION.—
‘‘(A) IN GENERAL.—Upon receipt of
an application (before or after receipt
of the information requested) which
describes in general terms the infor-
mation requested and sets forth the
reasons for the request, the admin-
istering authority or the Commission
shall make all business proprietary
information presented to, or obtained
by it, during a proceeding under this
235
title (except privileged information,
classified information, and specific
information of a type for which there
is a clear and compelling need to
withhold from disclosure) available to
all interested parties who are parties
to the proceeding under a protective
order described in subparagraph (B),
regardless of when the information is
submitted 
during 
the 
proceeding.
Customer names (other than the
name of the United States buyer of
the subject vessel) obtained during
any investigation which requires a
determination under section 805(b)
may not be disclosed by the admin-
istering authority under protective
order until either an order is pub-
lished under section 806(a) as a result
of the investigation or the investiga-
tion is suspended or terminated. The
Commission may delay disclosure of
customer names (other than the name
of the United States buyer of the sub-
ject vessel) under protective order
236
during any such investigation until a
reasonable time before any hearing
provided under section 841 is held.
‘‘(B) PROTECTIVE ORDER.—The pro-
tective order under which informa-
tion is made available shall contain
such requirements as the administer-
ing authority or the Commission may
determine by regulation to be appro-
priate. The administering authority
and the Commission shall provide by
regulation for such sanctions as the
administering authority and the Com-
mission determine to be appropriate,
including disbarment from practice
before the agency.
‘‘(C) TIME
LIMITATIONS
ON
DETER-
MINATIONS.—The 
administering 
au-
thority or the Commission, as the
case may be, shall determine whether
to make information available under
this paragraph—
‘‘(i) not later than 14 days (7
days if the submission pertains to
a 
proceeding 
under 
section
237
803(a)) after the date on which
the information is submitted, or
‘‘(ii) if—
‘‘(I) the person submitting
the information raises objec-
tion to its release, or
‘‘(II) the information is un-
usually voluminous or com-
plex,
not later than 30 days (10 days if
the submission pertains to a pro-
ceeding 
under 
section 
803(a))
after the date on which the infor-
mation is submitted.
‘‘(D) AVAILABILITY
AFTER
DETER-
MINATION.—If 
the 
determination
under subparagraph (C) is affirma-
tive, then—
‘‘(i) the business proprietary
information submitted to the ad-
ministering authority or the Com-
mission on or before the date of
the determination shall be made
available, subject to the terms
238
and conditions of the protective
order, on such date, and
‘‘(ii) the business proprietary
information submitted to the ad-
ministering authority or the Com-
mission after the date of the de-
termination shall be served as re-
quired by subsection (d).
‘‘(E) FAILURE
TO
DISCLOSE.—If a
person submitting information to the
administering authority refuses to
disclose business proprietary infor-
mation which the administering au-
thority determines should be released
under a protective order described in
subparagraph (B), the administering
authority shall return the informa-
tion, and any nonconfidential sum-
mary thereof, to the person submit-
ting the information and summary
and shall not consider either.
‘‘(2) 
DISCLOSURE
UNDER
COURT
ORDER.—If the administering authority or
the Commission denies a request for in-
formation under paragraph (1), then ap-
239
plication may be made to the United
States Court of International Trade for
an order directing the administering au-
thority or the Commission, as the case
may be, to make the information avail-
able. After notification of all parties to
the investigation and after an oppor-
tunity for a hearing on the record, the
court may issue an order, under such
conditions as the court deems appro-
priate, which shall not have the effect of
stopping or suspending the investigation,
directing the administering authority or
the Commission to make all or a portion
of the requested information described in
the preceding sentence available under a
protective order and setting forth sanc-
tions for violation of such order if the
court finds that, under the standards ap-
plicable in proceedings of the court, such
an order is warranted, and that—
‘‘(A) the administering authority
or the Commission has denied access
to the information under subsection
(b)(1),
240
‘‘(B) the person on whose behalf
the information is requested is an in-
terested party who is a party to the
investigation 
in 
connection 
with
which the information was obtained
or developed, and
‘‘(C) the party which submitted
the information to which the request
relates has been notified, in advance
of the hearing, of the request made
under this section and of its right to
appear and be heard.
‘‘(d) SERVICE.—Any party submitting writ-
ten information, including business propri-
etary information, to the administering au-
thority or the Commission during a proceed-
ing shall, at the same time, serve the informa-
tion upon all interested parties who are par-
ties to the proceeding, if the information is
covered by a protective order. The admin-
istering authority or the Commission shall
not accept any such information that is not
accompanied by a certificate of service and a
copy of the protective order version of the
document containing the information. Busi-
241
ness proprietary information shall only be
served upon interested parties who are par-
ties to the proceeding that are subject to pro-
tective order, except that a nonconfidential
summary thereof shall be served upon all
other interested parties who are parties to the
proceeding.
‘‘(e) INFORMATION RELATING TO VIOLATIONS
OF PROTECTIVE ORDERS AND SANCTIONS.—The
administering authority and the Commission
may withhold from disclosure any cor-
respondence, private letters of reprimand,
settlement agreements, and documents and
files compiled in relation to investigations
and actions involving a violation or possible
violation of a protective order issued under
subsection (c), and such information shall be
treated as information described in section
552(b)(3) of title 5, United States Code.
‘‘(f) OPPORTUNITY FOR COMMENT BY VESSEL
BUYERS.—The administering authority and
the Commission shall provide an opportunity
for buyers of subject vessels to submit rel-
evant information to the administering au-
thority concerning a sale at less than fair
242
value or countermeasures, and to the Com-
mission concerning material injury by reason
of the sale of a vessel at less than fair value.
‘‘(g) PUBLICATION OF DETERMINATIONS; RE-
QUIREMENTS FOR FINAL DETERMINATIONS.—
‘‘(1) IN
GENERAL.—Whenever the ad-
ministering authority makes a determina-
tion under section 802 whether to initiate
an investigation, or the administering au-
thority or the Commission makes a pre-
liminary determination under section
803, a final determination under section
805, a determination under subsection
(b), (c), (d), (e)(3)(B)(ii), (g), or (i) of sec-
tion 807, or a determination to suspend
an investigation under this title, the ad-
ministering authority or the Commission,
as the case may be, shall publish the facts
and conclusions supporting that deter-
mination, and shall publish notice of that
determination in the Federal Register.
‘‘(2) CONTENTS
OF
NOTICE
OR
DETER-
MINATION.—The notice or determination
published under paragraph (1) shall in-
clude, to the extent applicable—
243
‘‘(A) in the case of a determina-
tion of the administering authority—
‘‘(i) the names of the foreign
producer and the country of ori-
gin of the subject vessel,
‘‘(ii) a description sufficient to
identify the subject vessel,
‘‘(iii) with respect to an injuri-
ous pricing charge, the injurious
pricing margin established and a
full explanation of the methodol-
ogy used in establishing such
margin,
‘‘(iv) with respect to counter-
measures, the scope and duration
of countermeasures and, if appli-
cable, any changes thereto, and
‘‘(v) the primary reasons for
the determination, and
‘‘(B) in the case of a determina-
tion of the Commission—
‘‘(i) considerations relevant to
the determination of injury, and
‘‘(ii) the primary reasons for
the determination.
244
‘‘(3) ADDITIONAL
REQUIREMENTS
FOR
FINAL DETERMINATIONS.—In addition to the
requirements set forth in paragraph (2)—
‘‘(A) the administering authority
shall include in a final determination
under section 805 or 807(c) an expla-
nation of the basis for its determina-
tion that addresses relevant argu-
ments, made by interested parties
who are parties to the investigation,
concerning the establishment of the
injurious pricing charge with respect
to which the determination is made,
and
‘‘(B) the Commission shall include
in a final determination of injury an
explanation of the basis for its deter-
mination that addresses relevant ar-
guments that are made by interested
parties who are parties to the inves-
tigation concerning the effects and
impact on the industry of the sale of
the subject vessel.
245
‘‘SEC. 844. CONDUCT OF INVESTIGATIONS.
‘‘(a) CERTIFICATION OF SUBMISSIONS.—Any
person providing factual information to the
administering authority or the Commission in
connection with a proceeding under this title
on behalf of the petitioner or any other inter-
ested party shall certify that such information
is accurate and complete to the best of that
person’s knowledge.
‘‘(b) DIFFICULTIES
IN
MEETING
REQUIRE-
MENTS.—
‘‘(1) 
NOTIFICATION
BY
INTERESTED
PARTY.—If an interested party, promptly
after receiving a request from the admin-
istering authority or the Commission for
information, notifies the administering
authority or the Commission (as the case
may be) that such party is unable to sub-
mit the information requested in the re-
quested form and manner, together with
a full explanation and suggested alter-
native forms in which such party is able
to submit the information, the admin-
istering authority or the Commission (as
the case may be) shall consider the abil-
ity of the interested party to submit the
246
information in the requested form and
manner and may modify such require-
ments to the extent necessary to avoid
imposing an unreasonable burden on that
party.
‘‘(2) ASSISTANCE
TO
INTERESTED
PAR-
TIES.—The administering authority and
the Commission shall take into account
any difficulties experienced by interested
parties, particularly small companies, in
supplying information requested by the
administering authority or the Commis-
sion in connection with investigations
under this title, and shall provide to such
interested parties any assistance that is
practicable in supplying such informa-
tion.
‘‘(c) DEFICIENT SUBMISSIONS.—If the admin-
istering authority or the Commission deter-
mines that a response to a request for infor-
mation under this title does not comply with
the request, the administering authority or
the Commission (as the case may be) shall
promptly inform the person submitting the
response of the nature of the deficiency and
247
shall, to the extent practicable, provide that
person with an opportunity to remedy or ex-
plain the deficiency in light of the time limits
established for the completion of investiga-
tions or reviews under this title. If that per-
son submits further information in response
to such deficiency and either—
‘‘(1) the administering authority or
the Commission (as the case may be)
finds that such response is not satisfac-
tory, or
‘‘(2) such response is not submitted
within the applicable time limits,
then the administering authority or the Com-
mission (as the case may be) may, subject to
subsection (d), disregard all or part of the
original and subsequent responses.
‘‘(d) USE
OF
CERTAIN
INFORMATION.—In
reaching a determination under section 803,
805, or 807, the administering authority and
the Commission shall not decline to consider
information that is submitted by an inter-
ested party and is necessary to the determina-
tion but does not meet all the applicable re-
248
quirements established by the administering
authority or the Commission if—
‘‘(1) the information is submitted by
the deadline established for its submis-
sion,
‘‘(2) the information can be verified,
‘‘(3) the information is not so incom-
plete that it cannot serve as a reliable
basis for reaching the applicable deter-
mination,
‘‘(4) the interested party has dem-
onstrated that it acted to the best of its
ability in providing the information and
meeting the requirements established by
the administering authority or the Com-
mission with respect to the information,
and
‘‘(5) the information can be used with-
out undue difficulties.
‘‘(e) NONACCEPTANCE
OF SUBMISSIONS.—If
the administering authority or the Commis-
sion declines to accept into the record any in-
formation 
submitted 
in 
an 
investigation
under this title, it shall, to the extent prac-
ticable, provide to the person submitting the
249
information a written explanation of the rea-
sons for not accepting the information.
‘‘(f) PUBLIC COMMENT ON INFORMATION.—In-
formation that is submitted on a timely basis
to the administering authority or the Commis-
sion during the course of a proceeding under
this title shall be subject to comment by other
parties within such reasonable time as the ad-
ministering authority or the Commission
shall provide. The administering authority
and the Commission, before making a final
determination under section 805 or 807, shall
cease collecting information and shall provide
the parties with a final opportunity to com-
ment on the information obtained by the ad-
ministering authority or the Commission (as
the case may be) upon which the parties have
not previously had an opportunity to com-
ment. Comments containing new factual in-
formation shall be disregarded.
‘‘(g) VERIFICATION.—The administering au-
thority shall verify all information relied
upon in making a final determination under
section 805.
250
‘‘SEC. 845. ADMINISTRATIVE ACTION FOLLOWING SHIP-
BUILDING AGREEMENT PANEL REPORTS.
‘‘(a) ACTION
BY
UNITED
STATES
INTER-
NATIONAL TRADE COMMISSION.—
‘‘(1) ADVISORY
REPORT.—If a dispute
settlement panel under the Shipbuilding
Agreement finds in a report that an ac-
tion by the Commission in connection
with a particular proceeding under this
title is not in conformity with the obliga-
tions of the United States under the Ship-
building 
Agreement, 
the 
Trade 
Rep-
resentative may request the Commission
to issue an advisory report on whether
this title permits the Commission to take
steps in connection with the particular
proceeding that would render its action
not inconsistent with the findings of the
panel concerning those obligations. The
Trade Representative shall notify the
Committee on Ways and Means of the
House of Representatives and the Com-
mittee on Finance of the Senate of such
request.
‘‘(2) TIME
LIMITS
FOR
REPORT.—The
Commission shall transmit its report
251
under paragraph (1) to the Trade Rep-
resentative within 30 calendar days after
the Trade Representative requests the re-
port.
‘‘(3) CONSULTATIONS
ON
REQUEST
FOR
COMMISSION DETERMINATION.—If a majority
of the Commissioners issues an affirma-
tive report under paragraph (1), the
Trade Representatives shall consult with
the congressional committees listed in
paragraph (1) concerning the matter.
‘‘(4) COMMISSION DETERMINATION.—Not-
withstanding any other provision of this
title, if a majority of the Commissioners
issues an affirmative report under para-
graph (1), the Commission, upon the writ-
ten request of the Trade Representative,
shall issue a determination in connection
with 
the 
particular 
proceeding 
that
would render the Commission’s action de-
scribed in paragraph (1) not inconsistent
with the findings of the panel. The Com-
mission shall issue its determination not
later than 120 calendar days after the re-
252
quest from the Trade Representative is
made.
‘‘(5) CONSULTATIONS
ON
IMPLEMENTA-
TION OF COMMISSION DETERMINATION.—The
Trade Representative shall consult with
the congressional committees listed in
paragraph (1) before the Commission’s
determination under paragraph (4) is im-
plemented.
‘‘(6) REVOCATION OF ORDER.—If, by vir-
tue of the Commission’s determination
under paragraph (4), an injurious pricing
order is no longer supported by an af-
firmative 
Commission 
determination
under this title, the Trade Representative
may, after consulting with the congres-
sional committees under paragraph (5),
direct the administering authority to re-
voke the injurious pricing order.
‘‘(b) ACTION
BY
ADMINISTERING
AUTHOR-
ITY.—
‘‘(1) CONSULTATIONS WITH ADMINISTER-
ING
AUTHORITY
AND
CONGRESSIONAL
COM-
MITTEES.—Promptly after a report or
other determination by a dispute settle-
253
ment 
panel 
under 
the 
Shipbuilding
Agreement is issued that contains find-
ings that—
‘‘(A) an action by the administer-
ing authority in a proceeding under
this title is not in conformity with the
obligations 
of 
the 
United 
States
under the Shipbuilding Agreement,
‘‘(B) the due date for payment of
an injurious pricing charge contained
in an order issued under section 806
should be amended,
‘‘(C) 
countermeasures 
provided
for in an order issued under section
807 
should 
be 
provisionally 
sus-
pended or reduced pending the final
decision of the panel, or
‘‘(D) the scope or duration of
countermeasures imposed under sec-
tion 807 should be narrowed or short-
ened,
the Trade Representative shall consult
with the administering authority and the
congressional committees listed in sub-
section (a)(1) on the matter.
254
‘‘(2) DETERMINATION BY ADMINISTERING
AUTHORITY.—Notwithstanding any other
provision of this title, the administering
authority shall, in response to a written
request from the Trade Representative,
issue a determination, or an amendment
to or suspension of an injurious pricing
or countermeasure order, as the case may
be, in connection with the particular pro-
ceeding that would render the admin-
istering authority’s action described in
paragraph (1) not inconsistent with the
findings of the panel.
‘‘(3) 
TIME
LIMITS
FOR
DETERMINA-
TIONS.—The administering authority shall
issue its determination, amendment, or
suspension under paragraph (2)—
‘‘(A) with respect to a matter de-
scribed in subparagraph (A) of para-
graph (1), within 180 calendar days
after the request from the Trade Rep-
resentative is made, and
‘‘(B) with respect to a matter de-
scribed in subparagraph (B), (C), or
(D) of paragraph (1), within 15 cal-
255
endar days after the request from the
Trade Representative is made.
‘‘(4) CONSULTATIONS BEFORE IMPLEMEN-
TATION.—Before the administering au-
thority implements any determination,
amendment, or suspension under para-
graph (2), the Trade Representative shall
consult with the administering authority
and the congressional committees listed
in subsection (a)(1) with respect to such
determination, amendment, or suspen-
sion.
‘‘(5) IMPLEMENTATION
OF
DETERMINA-
TION.—The Trade Representative may,
after consulting with the administering
authority and the congressional commit-
tees under paragraph (4), direct the ad-
ministering authority to implement, in
whole or in part, the determination,
amendment, or suspension made under
paragraph (2).
‘‘(6) IMPLEMENTATION
OF
DETERMINA-
TION; NOTICE OF IMPLEMENTATION.—The ad-
ministering authority shall implement
256
the determination, amendment, or sus-
pension under paragraph (2)—
‘‘(A) with respect to a matter de-
scribed in subparagraph (A) of para-
graph (1), only if the injurious pricing
margin determined under paragraph
(2) differs from the injurious pricing
margin 
in 
the 
determination 
re-
viewed by the panel, and
‘‘(B) with respect to a matter de-
scribed in subparagraph (B), (C), or
(D) of paragraph (1), upon issuance of
the determination, amendment, or
suspension under paragraph (2).
The administering authority shall publish
notice of such implementation in the Fed-
eral Register.
‘‘(c) OPPORTUNITY FOR COMMENT BY INTER-
ESTED PARTIES.—Before issuing a determina-
tion, amendment, or suspension, the admin-
istering authority, in a matter described in
subsection (b)(1)(A), or the Commission, in a
matter described in subsection (a)(1), as the
case may be, shall provide interested parties
with an opportunity to submit written com-
257
ments and, in appropriate cases, may hold a
hearing, with respect to the determination.
‘‘Subtitle D—Definitions
‘‘SEC. 861. DEFINITIONS.
‘‘For purposes of this title:
‘‘(1) ADMINISTERING
AUTHORITY.—The
term ‘administering authority’ means the
Secretary of Commerce, or any other offi-
cer of the United States to whom the re-
sponsibility for carrying out the duties of
the administering authority under this
title are transferred by law.
‘‘(2) COMMISSION.—The term ‘Commis-
sion’ means the United States Inter-
national Trade Commission.
‘‘(3) 
COUNTRY.—The 
term 
‘country’
means a foreign country, a political sub-
division, dependent territory, or posses-
sion of a foreign country and, except as
provided in paragraph (16)(E)(iii), may
not include an association of 2 or more
foreign countries, political subdivisions,
dependent territories, or possessions of
countries into a customs union outside
the United States.
258
‘‘(4) INDUSTRY.—
‘‘(A) IN GENERAL.—Except as used
in section 808, the term ‘industry’
means the producers as a whole of a
domestic like vessel, or those produc-
ers whose collective capability to
produce a domestic like vessel con-
stitutes a major proportion of the
total domestic capability to produce a
domestic like vessel.
‘‘(B) PRODUCER.—A ‘producer’ of a
domestic like vessel includes an en-
tity that is producing the domestic
like vessel and an entity with the ca-
pability to produce the domestic like
vessel.
‘‘(C) CAPABILITY TO PRODUCE A DO-
MESTIC LIKE VESSEL.—A producer has
the ‘capability to produce a domestic
like vessel’ if it is capable of produc-
ing a domestic like vessel with its
present facilities or could adapt its
facilities 
in 
a 
timely 
manner 
to
produce a domestic like vessel.
259
‘‘(D) RELATED
PARTIES.—(i) In an
investigation under this title, if a pro-
ducer of a domestic like vessel and
the foreign producer, seller (other
than the foreign producer), or United
States buyer of the subject vessel are
related parties, or if a producer of a
domestic like vessel is also a United
States buyer of the subject vessel, the
domestic producer may, in appro-
priate circumstances, be excluded
from the industry.
‘‘(ii) For purposes of clause (i), a
domestic producer and the foreign
producer, seller, or United States
buyer shall be considered to be relat-
ed parties, if—
‘‘(I) the domestic producer di-
rectly or indirectly controls the
foreign producer, seller or United
States buyer,
‘‘(II) 
the 
foreign 
producer,
seller, or United States buyer di-
rectly or indirectly controls the
domestic producer,
260
‘‘(III) a third party directly or
indirectly controls the domestic
producer and the foreign pro-
ducer, seller, or United States
buyer, or
‘‘(IV) the domestic producer
and the foreign producer, seller,
or United States buyer directly or
indirectly control a third party
and there is reason to believe that
the relationship causes the pro-
ducer to act differently than a
nonrelated producer.
For purposes of this subparagraph, a
party shall be considered to directly
or indirectly control another party if
the party is legally or operationally
in a position to exercise restraint or
direction over the other party.
‘‘(E) PRODUCT LINES.—In an inves-
tigation under this title, the effect of
the sale of the subject vessel shall be
assessed in relation to the United
States production (or production ca-
pability) of a domestic like vessel if
261
available data permit the separate
identification of production (or pro-
duction capability) in terms of such
criteria as the production process or
the producer’s profits. If the domestic
production (or production capability)
of a domestic like vessel has no sepa-
rate identity in terms of such criteria,
then the effect of the sale shall be as-
sessed by the examination of the pro-
duction (or production capability) of
the narrowest group or range of ves-
sels, which includes a domestic like
vessel, for which the necessary infor-
mation can be provided.
‘‘(5) BUYER.—The term ‘buyer’ means
any person who acquires an ownership
interest in a vessel, including by way of
lease or long-term bareboat charter, in
conjunction with the original transfer
from the producer, either directly or indi-
rectly, including an individual or com-
pany which owns or controls a buyer.
There may be more than one buyer of
any one vessel.
262
‘‘(6) UNITED STATES BUYER.—The term
‘United States buyer’ means a buyer that
is any of the following:
‘‘(A) A United States citizen.
‘‘(B) A juridical entity, including
any corporation, company, associa-
tion, or other organization, that is le-
gally constituted under the laws and
regulations of the United States or a
political subdivision thereof, regard-
less of whether the entity is orga-
nized for pecuniary gain, privately or
government owned, or organized with
limited or unlimited liability.
‘‘(C) A juridical entity that is
owned or controlled by nationals or
entities described in subparagraphs
(A) and (B). For the purposes of this
subparagraph—
‘‘(i) the term ‘own’ means hav-
ing more than a 50 percent inter-
est, and
‘‘(ii) the term ‘control’ means
the actual ability to have substan-
tial influence on corporate behav-
263
ior, and control is presumed to
exist where there is at least a 25
percent interest.
If ownership of a company is estab-
lished under clause (i), other control
is presumed not to exist unless it is
otherwise established.
‘‘(7) OWNERSHIP INTEREST.—An ‘owner-
ship interest’ in a vessel includes any
contractual or proprietary interest which
allows the beneficiary or beneficiaries of
such interest to take advantage of the op-
eration of the vessel in a manner substan-
tially comparable to the way in which an
owner may benefit from the operation of
the vessel. In determining whether such
substantial comparability exists, the ad-
ministering authority shall consider—
‘‘(A) the terms and circumstances
of the transaction which conveys the
interest,
‘‘(B) commercial practice,
‘‘(C) whether the vessel subject to
the transaction is integrated into the
264
operations of the beneficiary or bene-
ficiaries, and
‘‘(D) whether in practice there is
a likelihood that the beneficiary or
beneficiaries of such interests will
take advantage of and the risk for the
operation of the vessel for a signifi-
cant part of the life-time of the vessel.
‘‘(8) VESSEL.—
‘‘(A) IN GENERAL.—Except as other-
wise 
specifically 
provided 
under
international agreements, the term
‘vessel’ means—
‘‘(i) a self-propelled seagoing
vessel of 100 gross tons or more
used for transportation of goods
or persons or for performance of
a specialized service (including,
but not limited to, ice breakers
and dredgers), and
‘‘(ii) a tug of 365 kilowatts or
more,
that is produced in a Shipbuilding
Agreement Party or a country that is
265
not a Shipbuilding Agreement Party
and not a WTO member.
‘‘(B) EXCLUSIONS.—The term ‘ves-
sel’ does not include—
‘‘(i) any fishing vessel des-
tined for the fishing fleet of the
country in which the vessel is
built,
‘‘(ii) any military vessel,
‘‘(iii) a military reserve vessel,
and
‘‘(iv) any vessel sold before
the date that the Shipbuilding
Agreement enters into force with
respect to the United States, ex-
cept that any vessel sold after De-
cember 21, 1994, for delivery more
than 5 years after the date of the
contract of sale shall be a ‘vessel’
for purposes of this title unless
the shipbuilder demonstrates to
the administering authority that
the extended delivery date was
for normal commercial reasons
266
and not to avoid applicability of
this title.
‘‘(C) 
SELF-PROPELLED
SEAGOING
VESSEL.—A vessel is ‘self-propelled
seagoing’ if its permanent propulsion
and steering provide it all the charac-
teristics of self-navigability in the
high seas.
‘‘(D) MILITARY VESSEL.—A ‘military
vessel’ is a vessel which, according to
its basic structural characteristics
and ability, is intended to be used ex-
clusively for military purposes.
‘‘(E) MILITARY RESERVE VESSEL.—A
‘military reserve vessel’ is a vessel
that has been constructed with na-
tional defense features and character-
istics required by the Secretary of De-
fense for the purpose of supporting
the United States Armed Forces in a
contingency.
‘‘(9) LIKE VESSEL.—The term ‘like ves-
sel’ means a vessel of the same type, same
purpose, and approximate size as the
subject vessel and possessing characteris-
267
tics closely resembling those of the sub-
ject vessel.
‘‘(10) 
DOMESTIC
LIKE
VESSEL.—The
term ‘domestic like vessel’ means a like
vessel produced in the United States.
‘‘(11) FOREIGN LIKE VESSEL.—Except as
used in section 822(e)(1)(B)(ii)(II), the
term ‘foreign like vessel’ means a like
vessel produced by the foreign producer
of the subject vessel for sale in the pro-
ducer’s domestic market or in a third
country.
‘‘(12) SAME GENERAL CATEGORY OF VES-
SEL.—The term ‘same general category of
vessel’ means a vessel of the same type
and purpose as the subject vessel, but of
a significantly different size.
‘‘(13) SUBJECT VESSEL.—The term ‘sub-
ject vessel’ means a vessel subject to in-
vestigation under section 801, 808, or 809.
‘‘(14) FOREIGN
PRODUCER.—The term
‘foreign producer’ means the producer or
producers of the subject vessel.
268
‘‘(15) EXPORTING
COUNTRY.—The term
‘exporting country’ means the country in
which the subject vessel was built.
‘‘(16) MATERIAL INJURY.—
‘‘(A) IN GENERAL.—The term ‘mate-
rial injury’ means harm which is not
inconsequential, immaterial, or unim-
portant.
‘‘(B) SALE
AND
CONSEQUENT
IM-
PACT.—In 
making 
determinations
under sections 803(a) and 805(b), the
Commission in each case—
‘‘(i) shall consider—
‘‘(I) the sale of the subject
vessel,
‘‘(II) the effect of the sale
of the subject vessel on prices
in the United States for a do-
mestic like vessel, and
‘‘(III) the impact of the
sale of the subject vessel on
domestic producers of the do-
mestic like vessel, but only in
the context of production op-
269
erations within the United
States, and
‘‘(ii) may consider such other
economic factors as are relevant
to the determination regarding
whether there is or has been ma-
terial injury by reason of the sale
of the subject vessel.
In the notification required under
section 805(d), the Commission shall
explain its analysis of each factor
considered under clause (i), and iden-
tify each factor considered under
clause (ii) and explain in full its rel-
evance to the determination.
‘‘(C) EVALUATION OF RELEVANT FAC-
TORS.—For purposes of subparagraph
(B)—
‘‘(i) SALE OF THE SUBJECT VES-
SEL.—In evaluating the sale of the
subject vessel, the Commission
shall consider whether the sale,
either in absolute terms or rel-
ative to production or demand in
the United States, in terms of ei-
270
ther volume or value, is or has
been significant.
‘‘(ii) PRICE.—In evaluating the
effect of the sale of the subject
vessel on prices, the Commission
shall consider whether—
‘‘(I) there has been signifi-
cant price underselling of the
subject vessel as compared
with the price of a domestic
like vessel, and
‘‘(II) the effect of the sale
of the subject vessel other-
wise depresses or has de-
pressed prices to a significant
degree or prevents or has pre-
vented price increases, which
otherwise 
would 
have 
oc-
curred, to a significant de-
gree.
‘‘(iii) IMPACT ON AFFECTED DO-
MESTIC
INDUSTRY.—In examining
the impact required to be consid-
ered 
under 
subparagraph
(B)(i)(III), the Commission shall
271
evaluate all relevant economic
factors which have a bearing on
the state of the industry in the
United States, including, but not
limited to—
‘‘(I) actual and potential
decline in output, sales, mar-
ket share, profits, productiv-
ity, return on investments,
and utilization of capacity,
‘‘(II) factors affecting do-
mestic prices, including with
regard to sales,
‘‘(III) actual and potential
negative effects on cash flow,
employment, wages, growth,
ability to raise capital, and in-
vestment,
‘‘(IV) actual and potential
negative effects on the exist-
ing development and produc-
tion efforts of the domestic in-
dustry, including efforts to
develop a derivative or more
272
advanced version of a domes-
tic like vessel, and
‘‘(V) the magnitude of the
injurious pricing margin.
The Commission shall evaluate all
relevant 
economic 
factors 
de-
scribed in this clause within the
context of the business cycle and
conditions of competition that are
distinctive to the affected indus-
try.
‘‘(D) STANDARD
FOR
DETERMINA-
TION.—The presence or absence of
any factor which the Commission is
required to evaluate under subpara-
graph (C) shall not necessarily give
decisive guidance with respect to the
determination by the Commission of
material injury.
‘‘(E) THREAT OF MATERIAL INJURY.—
‘‘(i) IN GENERAL.—In determin-
ing whether an industry in the
United States is threatened with
material injury by reason of the
sale of the subject vessel, the
273
Commission 
shall 
consider,
among other relevant economic
factors—
‘‘(I) any existing unused
production capacity or immi-
nent, substantial increase in
production capacity in the ex-
porting 
country 
indicating
the likelihood of substantially
increased sales of a foreign
like vessel to United States
buyers, taking into account
the availability of other ex-
port markets to absorb any
additional exports,
‘‘(II) whether the sale of a
foreign like vessel or other
factors indicate the likelihood
of significant additional sales
to United States buyers,
‘‘(III) whether sale of the
subject vessel or sale of a for-
eign like vessel by the foreign
producer are at prices that
are likely to have a significant
274
depressing or suppressing ef-
fect on domestic prices, and
are likely to increase demand
for further sales,
‘‘(IV) 
the 
potential 
for
product-shifting if production
facilities 
in 
the 
exporting
country, which can presently
be used to produce a foreign
like vessel or could be adapt-
ed in a timely manner to
produce a foreign like vessel,
are currently being used to
produce other types of ves-
sels,
‘‘(V) the actual and poten-
tial negative effects on the ex-
isting development and pro-
duction efforts of the domes-
tic industry, including efforts
to develop a derivative or
more advanced version of a
domestic like vessel, and
‘‘(VI) any other demon-
strable adverse trends that in-
275
dicate the probability that
there is likely to be material
injury by reason of the sale of
the subject vessel.
‘‘(ii) 
BASIS
FOR
DETERMINA-
TION.—The Commission shall con-
sider the factors set forth in
clause (i) as a whole. The pres-
ence or absence of any factor
which the Commission is required
to consider under clause (i) shall
not necessarily give decisive guid-
ance with respect to the deter-
mination. Such a determination
may not be made on the basis of
mere conjecture or supposition.
‘‘(iii) 
EFFECT
OF
INJURIOUS
PRICING
IN
THIRD-COUNTRY
MAR-
KETS.—
‘‘(I) 
IN
GENERAL.—The
Commission 
shall 
consider
whether injurious pricing in
the markets of foreign coun-
tries (as evidenced by injuri-
ous pricing findings or injuri-
276
ous pricing remedies of other
Shipbuilding Agreement Par-
ties, or antidumping deter-
minations of, or measures im-
posed 
by, 
other 
countries,
against a like vessel produced
by the producer under inves-
tigation) suggests a threat of
material injury to the domes-
tic industry. In the course of
its investigation, the Commis-
sion shall request information
from the foreign producer or
United States buyer concern-
ing this issue.
‘‘(II) 
EUROPEAN
COMMU-
NITIES.—For purposes of this
clause, the European Commu-
nities as a whole shall be
treated as a single foreign
country.
‘‘(F) CUMULATION FOR DETERMINING
MATERIAL INJURY.—
‘‘(i) IN GENERAL.—For purposes
of clauses (i) and (ii) of subpara-
277
graph (C), and subject to clause
(ii) of this subparagraph, the
Commission 
shall 
cumulatively
assess the effects of sales of for-
eign like vessels from all foreign
producers 
with 
respect 
to
which—
‘‘(I) petitions were filed
under section 802(b) on the
same day,
‘‘(II) investigations were
initiated under section 802(a)
on the same day, or
‘‘(III) petitions were filed
under section 802(b) and in-
vestigations 
were 
initiated
under section 802(a) on the
same day,
if, with respect to such vessels,
the foreign producers compete
with each other and with produc-
ers of a domestic like vessel in the
United States market.
‘‘(ii) EXCEPTIONS.—The Com-
mission shall not cumulatively as-
278
sess the effects of sales under
clause (i)—
‘‘(I) with respect to which
the administering authority
has made a preliminary nega-
tive determination, unless the
administering authority sub-
sequently made a final affirm-
ative determination with re-
spect to those sales before the
Commission’s final determina-
tion is made, or
‘‘(II) from any producer
with respect to which the in-
vestigation has been termi-
nated.
‘‘(iii) RECORDS IN FINAL INVES-
TIGATIONS.—In each final deter-
mination in which it cumulatively
assesses the effects of sales under
clause (i), the Commission may
make its determinations based on
the record compiled in the first
investigation in which it makes a
final determination, except that
279
when the administering authority
issues its final determination in a
subsequently 
completed 
inves-
tigation, the Commission shall
permit the parties in the subse-
quent 
investigation 
to 
submit
comments concerning the signifi-
cance 
of 
the 
administering
authority’s final determination,
and shall include such comments
and the administering authority’s
final determination in the record
for the subsequent investigation.
‘‘(G) CUMULATION FOR DETERMINING
THREAT
OF
MATERIAL
INJURY.—To the
extent practicable and subject to sub-
paragraph (F)(ii), for purposes of
clause (i) (II) and (III) of subpara-
graph (E), the Commission may cumu-
latively assess the effects of sales of
like vessels from all countries with
respect to which—
‘‘(i) petitions were filed under
section 802(b) on the same day,
280
‘‘(ii) investigations were initi-
ated under section 802(a) on the
same day, or
‘‘(iii) 
petitions 
were 
filed
under section 802(b) and inves-
tigations were initiated under
section 802(a) on the same day,
if, with respect to such vessels, the
foreign producers compete with each
other and with producers of a domes-
tic like vessel in the United States
market.
‘‘(17) INTERESTED
PARTY.—The term
‘interested party’ means, in a proceeding
under this title—
‘‘(A)(i) the foreign producer, seller
(other than the foreign producer),
and the United States buyer of the
subject vessel, or
‘‘(ii) a trade or business associa-
tion a majority of the members of
which are the foreign producer, sell-
er, or United States buyer of the sub-
ject vessel,
281
‘‘(B) the government of the coun-
try in which the subject vessel is pro-
duced or manufactured,
‘‘(C) a producer that is a member
of an industry,
‘‘(D) a certified union or recog-
nized union or group of workers
which is representative of an indus-
try,
‘‘(E) a trade or business associa-
tion a majority of whose members are
producers in an industry,
‘‘(F) an association, a majority of
whose members is composed of inter-
ested parties described in subpara-
graph (C), (D), or (E), and
‘‘(G) for purposes of section 807, a
purchaser who, after the effective
date of an order issued under that
section, entered into a contract of
sale with the foreign producer that is
subject to the order.
‘‘(18) AFFIRMATIVE DETERMINATIONS BY
DIVIDED
COMMISSION.—If 
the 
Commis-
sioners voting on a determination by the
282
Commission are evenly divided as to
whether the determination should be af-
firmative or negative, the Commission
shall be deemed to have made an affirma-
tive determination. For the purpose of
applying this paragraph when the issue
before the Commission is to determine
whether there is or has been—
‘‘(A) material injury to an indus-
try in the United States,
‘‘(B) threat of material injury to
such an industry, or
‘‘(C) material retardation of the
establishment of an industry in the
United States,
by reason of the sale of the subject vessel,
an affirmative vote on any of the issues
shall be treated as a vote that the deter-
mination should be affirmative.
‘‘(19) ORDINARY
COURSE
OF
TRADE.—
The term ‘ordinary course of trade’
means 
the 
conditions 
and 
practices
which, for a reasonable time before the
sale of the subject vessel, have been nor-
mal in the shipbuilding industry with re-
283
spect to a like vessel. The administering
authority shall consider the following
sales and transactions, among others, to
be outside the ordinary course of trade:
‘‘(A) Sales disregarded under sec-
tion 822(b)(1).
‘‘(B) 
Transactions 
disregarded
under section 822(f)(2).
‘‘(20) NONMARKET ECONOMY COUNTRY.—
‘‘(A) IN GENERAL.—The term ‘non-
market economy country’ means any
foreign country that the administer-
ing authority determines does not op-
erate on market principles of cost or
pricing structures, so that sales of
vessels in such country do not reflect
the fair value of the vessels.
‘‘(B) FACTORS TO BE CONSIDERED.—
In making determinations under sub-
paragraph (A) the administering au-
thority shall take into account—
‘‘(i) the extent to which the
currency of the foreign country is
convertible into the currency of
other countries,
284
‘‘(ii) the extent to which wage
rates in the foreign country are
determined by free bargaining be-
tween labor and management,
‘‘(iii) the extent to which joint
ventures or other investments by
firms of other foreign countries
are permitted in the foreign coun-
try,
‘‘(iv) the extent of government
ownership 
or 
control 
of 
the
means of production,
‘‘(v) the extent of government
control over the allocation of re-
sources and over the price and
output decisions of enterprises,
and
‘‘(vi) such other factors as the
administering authority considers
appropriate.
‘‘(C) DETERMINATION IN EFFECT.—
‘‘(i) Any determination that a
foreign country is a nonmarket
economy country shall remain in
285
effect until revoked by the admin-
istering authority.
‘‘(ii) The administering au-
thority may make a determina-
tion under subparagraph (A) with
respect to any foreign country at
any time.
‘‘(D) 
DETERMINATIONS
NOT
IN
ISSUE.—Notwithstanding 
any 
other
provision of law, any determination
made by the administering authority
under subparagraph (A) shall not be
subject to judicial review in any in-
vestigation conducted under subtitle
A.
‘‘(21) SHIPBUILDING
AGREEMENT.—The
term ‘Shipbuilding Agreement’ means
The Agreement Respecting Normal Com-
petitive Conditions in the Commercial
Shipbuilding and Repair Industry, result-
ing from negotiations under the auspices
of the Organization for Economic Co-
operation and Development, and entered
into on December 21, 1994.
286
‘‘(22) 
SHIPBUILDING
AGREEMENT
PARTY.—The term ‘Shipbuilding Agree-
ment Party’ means a state or separate
customs territory that is a Party to the
Shipbuilding Agreement, and with re-
spect to which the United States applies
the Shipbuilding Agreement.
‘‘(23) 
WTO 
AGREEMENT.—The 
term
‘WTO Agreement’ means the Agreement
defined in section 2(9) of the Uruguay
Round Agreements Act.
‘‘(24) WTO MEMBER.—The term ‘WTO
member’ means a state, or separate cus-
toms territory (within the meaning of Ar-
ticle XII of the WTO Agreement), with re-
spect to which the United States applies
the WTO Agreement.
‘‘(25) 
TRADE
REPRESENTATIVE.—The
term ‘Trade Representative’ means the
United States Trade Representative.
‘‘(26) AFFILIATED
PERSONS.—The fol-
lowing persons shall be considered to be
‘affiliated’ or ‘affiliated persons’:
‘‘(A) Members of a family, includ-
ing brothers and sisters (whether by
287
the whole or half blood), spouse, an-
cestors, and lineal descendants.
‘‘(B) Any officer or director of an
organization and such organization.
‘‘(C) Partners.
‘‘(D) Employer and employee.
‘‘(E) Any person directly or indi-
rectly owning, controlling, or holding
with power to vote, 5 percent or more
of the outstanding voting stock or
shares of any organization, and such
organization.
‘‘(F) Two or more persons directly
or indirectly controlling, controlled
by, or under common control with,
any person.
‘‘(G) Any person who controls any
other person, and such other person.
For purposes of this paragraph, a person
shall be considered to control another
person if the person is legally or oper-
ationally in a position to exercise re-
straint or direction over the other per-
son.
288
‘‘(27) INJURIOUS
PRICING.—The term
‘injurious pricing’ refers to the sale of a
vessel at less than fair value.
‘‘(28) INJURIOUS PRICING MARGIN.—
‘‘(A) IN GENERAL.—The term ‘inju-
rious 
pricing 
margin’ 
means 
the
amount by which the normal value
exceeds the export price of the sub-
ject vessel.
‘‘(B) MAGNITUDE OF THE INJURIOUS
PRICING
MARGIN.—The magnitude of
the injurious pricing margin used by
the Commission shall be—
‘‘(i) in making a preliminary
determination 
under 
section
803(a) in an investigation (includ-
ing any investigation in which the
Commission 
cumulatively 
as-
sesses the effect of sales under
paragraph (16)(F)(i)), the injuri-
ous pricing margin or margins
published by the administering
authority in its notice of initi-
ation of the investigation; and
289
‘‘(ii) in making a final deter-
mination under section 805(b),
the injurious pricing margin or
margins most recently published
by the administering authority
before the closing of the Commis-
sion’s administrative record.
‘‘(29) 
COMMERCIAL
INTEREST
REF-
ERENCE RATE.—The term ‘Commercial In-
terest Reference Rate’ or ‘CIRR’ means
an interest rate that the administering
authority determines to be consistent
with Annex III, and appendices and notes
thereto, of the Understanding on Export
Credits for Ships, resulting from negotia-
tions under the auspices of the Organiza-
tion for Economic Cooperation, and en-
tered into on December 21, 1994.
‘‘(30) ANTIDUMPING.—
‘‘(A) WTO MEMBERS.—In the case
of a WTO member, the term ‘anti-
dumping’ refers to action taken pur-
suant to the Agreement on Implemen-
tation of Article VI of the General
Agreement on Tariffs and Trade 1994.
290
‘‘(B) OTHER CASES.—In the case of
any country that is not a WTO mem-
ber, the term ‘antidumping’ refers to
action taken by the country against
the sale of a vessel at less than fair
value that is comparable to action de-
scribed in subparagraph (A).
‘‘(31) BROAD MULTIPLE BID.—The term
‘broad multiple bid’ means a bid in which
the proposed buyer extends an invitation
to at least all the producers in the indus-
try known by the buyer to be capable of
building the subject vessel.’’.
SEC. 102. ENFORCEMENT OF COUNTERMEASURES.
Part II of title IV of the Tariff Act of 1930
is amended by adding at the end the follow-
ing:
‘‘SEC. 
468. 
SHIPBUILDING 
AGREEMENT 
COUNTER-
MEASURES.
‘‘(a) IN
GENERAL.—Notwithstanding any
other provision of law, upon receiving from
the Secretary of Commerce a list of vessels
subject to countermeasures under section 807,
the Customs Service shall deny any request
for a permit to lade or unlade passengers,
291
merchandise, or baggage from or onto those
vessels so listed.
‘‘(b) EXCEPTIONS.—Subsection (a) shall not
be applied to deny a permit for the following:
‘‘(1) To unlade any United States citi-
zen or permanent legal resident alien
from a vessel included in the list de-
scribed in subsection (a), or to unlade
any refugee or any alien who would oth-
erwise be eligible to apply for asylum and
withholding of deportation under the Im-
migration and Nationality Act.
‘‘(2) To lade or unlade any crew-
member of such vessel.
‘‘(3) To lade or unlade coal and other
fuel supplies (for the operation of the list-
ed vessel), ships’ stores, sea stores, and
the legitimate equipment of such vessel.
‘‘(4) To lade or unlade supplies for the
use or sale on such vessel.
‘‘(5) To lade or unlade such other
merchandise, baggage, or passenger as
the Customs Service shall determine nec-
essary to protect the immediate health,
safety, or welfare of a human being.
292
‘‘(c) CORRECTION OF MINISTERIAL OR CLERI-
CAL ERRORS.—
‘‘(1) PETITION FOR CORRECTION.—If the
master of any vessel whose application
for a permit to lade or unlade has been
denied under this section believes that
such denial resulted from a ministerial or
clerical error, not amounting to a mis-
take of law, committed by any Customs
officer, the master may petition the Cus-
toms Service for correction of such error,
as provided by regulation.
‘‘(2) INAPPLICABILITY
OF
SECTIONS
514
AND 520.—Notwithstanding paragraph (1),
imposition of countermeasures under this
section shall not be deemed an exclusion
or other protestable decision under sec-
tion 514, and shall not be subject to cor-
rection under section 520.
‘‘(3) PETITIONS SEEKING ADMINISTRATIVE
REVIEW.—Any petition seeking adminis-
trative review of any matter regarding
the Secretary of Commerce’s decision to
list a vessel under section 807 must be
brought under that section.
293
‘‘(d) PENALTIES.—In addition to any other
provision of law, the Customs Service may im-
pose a civil penalty of not to exceed $10,000
against the master of any vessel—
‘‘(1) who submits false information in
requesting any permit to lade or unlade;
or
‘‘(2) who attempts to, or actually does,
lade or unlade in violation of any denial
of such permit under this section.’’.
SEC. 103. JUDICIAL REVIEW IN INJURIOUS PRICING AND
COUNTERMEASURE PROCEEDINGS.
(a) JUDICIAL REVIEW.—Part III of title IV of
the Tariff Act of 1930 is amended by inserting
after section 516A the following:
‘‘SEC. 516B. JUDICIAL REVIEW IN INJURIOUS PRICING AND
COUNTERMEASURE PROCEEDINGS.
‘‘(a) REVIEW OF DETERMINATION.—
‘‘(1) IN GENERAL.—Within 30 days after
the date of publication in the Federal
Register of—
‘‘(A)(i) a determination by the ad-
ministering authority under section
802(c) not to initiate an investigation,
294
‘‘(ii) a negative determination by
the Commission under section 803(a)
as to whether there is or has been
reasonable indication of material in-
jury, threat of material injury, or ma-
terial retardation,
‘‘(iii) a determination by the ad-
ministering authority to suspend or
revoke an injurious pricing order
under section 806(d) or (e),
‘‘(iv) a determination by the ad-
ministering authority under section
807(c),
‘‘(v) a determination by the ad-
ministering authority in a review
under section 807(d),
‘‘(vi) a determination by the ad-
ministering 
authority 
concerning
whether to extend the scope or dura-
tion of a countermeasure order under
section 807(e)(3)(B)(ii),
‘‘(vii) a determination by the ad-
ministering authority to amend a
countermeasure order under section
807(e)(6),
295
‘‘(viii) a determination by the ad-
ministering authority in a review
under section 807(g),
‘‘(ix) a determination by the ad-
ministering authority under section
807(i) to terminate proceedings, or to
amend or revoke a countermeasure
order,
‘‘(x) a determination by the ad-
ministering authority under section
845(b), with respect to a matter de-
scribed in paragraph (1)(D) of that
section, or
‘‘(B)(i) an injurious pricing order
based on a determination described
in subparagraph (A) of paragraph (2),
‘‘(ii) notice of a determination de-
scribed in subparagraph (B) of para-
graph (2),
‘‘(iii) notice of implementation of
a determination described in sub-
paragraph (C) of paragraph (2), or
‘‘(iv) notice of revocation of an in-
jurious pricing order based on a de-
296
termination described in subpara-
graph (D) of paragraph (2),
an interested party who is a party to the
proceeding in connection with which the
matter arises may commence an action in
the United States Court of International
Trade by filing concurrently a summons
and complaint, each with the content and
in the form, manner, and style prescribed
by the rules of that court, contesting any
factual findings or legal conclusions upon
which the determination is based.
‘‘(2) 
REVIEWABLE
DETERMINATIONS.—
The determinations referred to in para-
graph (1)(B) are—
‘‘(A) a final affirmative determina-
tion by the administering authority
or by the Commission under section
805, including any negative part of
such a determination (other than a
part referred to in subparagraph (B)),
‘‘(B) a final negative determina-
tion by the administering authority
or the Commission under section 805,
297
‘‘(C) a determination by the ad-
ministering authority under section
845(b), with respect to a matter de-
scribed in paragraph (1)(A) of that
section, and
‘‘(D) a determination by the Com-
mission under section 845(a) that re-
sults in the revocation of an injurious
pricing order.
‘‘(3) EXCEPTION.—Notwithstanding the
30-day limitation imposed by paragraph
(1) with regard to an order described in
paragraph (1)(B)(i), a final affirmative de-
termination by the administering author-
ity under section 805 may be contested by
commencing an action, in accordance
with the provisions of paragraph (1),
within 30 days after the date of publica-
tion in the Federal Register of a final
negative determination by the Commis-
sion under section 805.
‘‘(4) PROCEDURES AND FEES.—The pro-
cedures and fees set forth in chapter 169
of title 28, United States Code, apply to
an action under this section.
298
‘‘(b) STANDARDS OF REVIEW.—
‘‘(1) REMEDY.—The court shall hold
unlawful any determination, finding, or
conclusion found—
‘‘(A) in an action brought under
subparagraph (A) of subsection (a)(1),
to be arbitrary, capricious, an abuse
of discretion, or otherwise not in ac-
cordance with law, or
‘‘(B) in an action brought under
subparagraph (B) of subsection (a)(1),
to be unsupported by substantial evi-
dence on the record, or otherwise not
in accordance with law.
‘‘(2) RECORD FOR REVIEW.—
‘‘(A) IN GENERAL.—For purposes of
this subsection, the record, unless
otherwise stipulated by the parties,
shall consist of—
‘‘(i) a copy of all information
presented to or obtained by the
administering authority or the
Commission during the course of
the administrative proceeding, in-
cluding all governmental memo-
299
randa pertaining to the case and
the record of ex parte meetings
required to be kept by section
843(a)(2); and
‘‘(ii) a copy of the determina-
tion, all transcripts or records of
conferences or hearings, and all
notices published in the Federal
Register.
‘‘(B) CONFIDENTIAL OR PRIVILEGED
MATERIAL.—The confidential or privi-
leged status accorded to any docu-
ments, 
comments, 
or 
information
shall be preserved in any action
under this section. Notwithstanding
the preceding sentence, the court
may examine, in camera, the con-
fidential or privileged material, and
may disclose such material under
such terms and conditions as it may
order.
‘‘(c) STANDING.—Any interested party who
was a party to the proceeding under title VIII
shall have the right to appear and be heard
as a party in interest before the United States
300
Court of International Trade in an action
under this section. The party filing the action
shall notify all such interested parties of the
filing of an action under this section, in the
form, manner, and within the time prescribed
by rules of the court.
‘‘(d) DEFINITIONS.—For purposes of this
section:
‘‘(1) ADMINISTERING
AUTHORITY.—The
term ‘administering authority’ has the
meaning given that term in section
861(1).
‘‘(2) COMMISSION.—The term ‘Commis-
sion’ means the United States Inter-
national Trade Commission.
‘‘(3) INTERESTED PARTY.—The term ‘in-
terested party’ means any person de-
scribed in section 861(17).’’.
(b) CONFORMING AMENDMENTS.—
(1) JURISDICTION OF THE COURT.—Sec-
tion 1581(c) of title 28, United States
Code, is amended by inserting ‘‘or 516B’’
after ‘‘section 516A’’.
(2) RELIEF.—Section 2643 of title 28,
United States Code, is amended—
301
(A) in subsection (c)(1) by striking
‘‘and (5)’’ and inserting ‘‘(5), and (6)’’;
and
(B) in subsection (c) by adding at
the end the following new paragraph:
‘‘(6) In any civil action under section 516B
of the Tariff Act of 1930, the Court of Inter-
national Trade may not issue injunctions or
any other form of equitable relief, except with
regard to implementation of a counter-
measure order under section 468 of that Act,
upon a proper showing that such relief is war-
ranted.’’.
TITLE II—OTHER PROVISIONS
SEC. 201. EQUIPMENT AND REPAIR OF VESSELS.
Section 466 of the Tariff Act of 1930 (19
U.S.C. 1466), is amended by adding at the end
the following new subsection:
‘‘(i) The duty imposed by subsection (a)
shall not apply with respect to activities oc-
curring in a Shipbuilding Agreement Party,
as defined in section 861(22), with respect to—
‘‘(1) self-propelled seagoing vessels of
100 gross tons or more that are used for
transportation of goods or persons or for
302
performance of a specialized service (in-
cluding, but not limited to, ice breakers
and dredges), and
‘‘(2) tugs of 365 kilowatts or more.
A vessel shall be considered ‘self-propelled
seagoing’ if its permanent propulsion and
steering provide it all the characteristics of
self-navigability in the high seas.’’.
SEC. 202. EFFECT OF AGREEMENT WITH RESPECT TO PRI-
VATE REMEDIES.
No person other than the United States—
(1) shall have any cause of action or
defense under the Shipbuilding Agree-
ment or by virtue of congressional ap-
proval of the agreement, or
(2) may challenge, in any action
brought under any provision of law, any
action or inaction by any department,
agency, or other instrumentality of the
United States, the District of Columbia,
any State, any political subdivision of a
State, or any territory or possession of
the United States on the ground that
such action or inaction is inconsistent
with such agreement.
303
SEC. 203. IMPLEMENTING REGULATIONS.
After the date of the enactment of this
Act, the heads of agencies with functions
under this Act and the amendments made by
this Act may issue such regulations as may be
necessary to ensure that this Act is appro-
priately implemented on the date the Ship-
building Agreement enters into force with re-
spect to the United States.
SEC. 204. AMENDMENTS TO THE MERCHANT MARINE ACT,
1936.
The Merchant Marine Act, 1936, is amend-
ed as follows:
(1) Section 511(a)(2) (46 App. U.S.C.
1161(a)(2)) is amended by inserting after
‘‘1939,’’ the following: ‘‘or, if the vessel is
a Shipbuilding Agreement vessel, con-
structed in a Shipbuilding Agreement
Party, but only with regard to moneys de-
posited, on or after the date on which the
Shipbuilding Trade Agreement Act takes
effect, into a construction reserve fund
established under subsection (b)’’.
(2) Section 601(a) (46 App. U.S.C.
1171(a)) is amended by striking ‘‘, and
that such vessel or vessels were built in
304
the United States, or have been docu-
mented under the laws of the United
States not later than February 1, 1928, or
actually ordered and under construction
for the account of citizens of the United
States prior to such date’’ and inserting
‘‘and that such vessel or vessels were
built in the United States, or, if the vessel
or vessels are Shipbuilding Agreement
vessels, in a Shipbuilding Agreement
Party’’.
(3) Section 606(6) (46 App. U.S.C.
1176(6)) is amended by inserting ‘‘or, if
the vessel is a Shipbuilding Agreement
vessel, 
in 
a 
Shipbuilding 
Agreement
Party or in the United States’’ before ‘‘,
except in an emergency.’’.
(4) Section 607 (46 App. U.S.C. 1177) is
amended as follows:
(A) Subsection (a) is amended by
inserting ‘‘or, if the vessel is a Ship-
building Agreement vessel, in a Ship-
building 
Agreement 
Party,’’ 
after
‘‘built in the United States’’.
305
(B) Subsection (k) is amended as
follows:
(i) Paragraph (1) is amended
by striking subparagraph (A) and
inserting the following:
‘‘(A)(i) constructed in the United
States 
and, 
if 
reconstructed, 
recon-
structed in the United States or in a
Shipbuilding Agreement Party, or
‘‘(ii) that is a Shipbuilding Agreement
vessel and is constructed in a Shipbuild-
ing 
Agreement 
Party 
and, 
if 
recon-
structed, is reconstructed in a Shipbuild-
ing Agreement Party or in the United
States,’’.
(ii) 
Paragraph 
(2)(A) 
is
amended to read as follows:
‘‘(A)(i) constructed in the United
States 
and, 
if 
reconstructed, 
recon-
structed in the United States or in a
Shipbuilding Agreement Party, or
‘‘(ii) that is a Shipbuilding Agreement
vessel and is constructed in a Shipbuild-
ing 
Agreement 
Party 
and, 
if 
recon-
structed, is reconstructed in a Shipbuild-
306
ing Agreement Party or in the United
States, but only with regard to moneys
deposited into the fund on or after the
date on which the Shipbuilding Trade
Agreement Act takes effect,’’.
(5) Section 610 (46 App. U.S.C. 1180) is
amended by striking ‘‘shall be built in a
domestic yard or shall have been docu-
mented under the laws of the United
States not later than February 1, 1928, or
actually ordered and under construction
for the account of citizens of the United
States prior to such date,’’ and inserting
‘‘shall be built in the United States or, if
the vessel is a Shipbuilding Agreement
vessel, 
in 
a 
Shipbuilding 
Agreement
Party,’’.
(6) Section 901(b)(1) (46 App. U.S.C.
1241(b)(1)) is amended by striking the
third sentence and inserting the follow-
ing:
‘‘For purposes of this section, the term ‘pri-
vately owned United States-flag commercial
vessels’ shall be deemed to include—
307
‘‘(A) 
any 
privately 
owned 
United
States-flag commercial vessel constructed
in the United States, and if rebuilt, re-
built in the United States or in a Ship-
building Agreement Party on or after the
date on which the Shipbuilding Trade
Agreement Act takes effect, and
‘‘(B) any privately owned vessel con-
structed in a Shipbuilding Agreement
Party on or after the date on which the
Shipbuilding Trade Agreement Act takes
effect, and if rebuilt, rebuilt in a Ship-
building Agreement Party or in the Unit-
ed States, that is documented pursuant to
chapter 121 of title 46, United States
Code.
The term ‘privately owned United States-flag
commercial vessels’ shall also be deemed to
include any cargo vessel that so qualified pur-
suant to section 615 of this Act or this para-
graph before the date on which the Shipbuild-
ing Trade Agreement Act takes effect. The
term ‘privately owned United States-flag com-
mercial vessels’ shall not be deemed to in-
clude any liquid bulk cargo vessel that does
308
not meet the requirements of section 3703a of
title 46, United States Code.’’.
(7) Section 905 (46 App. U.S.C. 1244) is
amended by adding at the end the follow-
ing:
‘‘(h) The term ‘Shipbuilding Agreement’
means the Agreement Respecting Normal
Competitive Conditions in the Commercial
Shipbuilding and Repair Industry, which re-
sulted from negotiations under the auspices
of the Organization for Economic Coopera-
tion and Development, and was entered into
on December 21, 1994.
‘‘(i) The term ‘Shipbuilding Agreement
Party’ means a state or separate customs ter-
ritory that is a Party to the Shipbuilding
Agreement, and with respect to which the
United States applies the Shipbuilding Agree-
ment.
‘‘(j) The term ‘Shipbuilding Agreement
vessel’ means a vessel to which the Secretary
determines Article 2.1 of the Shipbuilding
Agreement applies.
‘‘(k) The term ‘Export Credit Understand-
ing’ means the Understanding on Export
309
Credits for Ships which resulted from nego-
tiations under the auspices of the Organiza-
tion for Economic Cooperation and Develop-
ment and was entered into on December 21,
1994.
‘‘(l) The term ‘Export Credit Understand-
ing vessel’ means a vessel to which the Sec-
retary determines the Export Credit Under-
standing applies.’’.
(8) Section 1104A (46 App. U.S.C. 1274)
is amended as follows:
(A) Paragraph (5) of subsection
(b) is amended to read as follows:
‘‘(5) shall bear interest (exclusive of
charges for the guarantee and service
charges, if any) at rates not to exceed
such percent per annum on the unpaid
principal as the Secretary determines to
be reasonable, taking into account the
range of interest rates prevailing in the
private market for similar loans and the
risks assumed by the Secretary, except
that, with respect to Export Credit Un-
derstanding vessels, and Shipbuilding
Agreement vessels, the obligations shall
310
bear interest at a rate the Secretary de-
termines to be consistent with obliga-
tions of the United States under the Ex-
port Credit Understanding or the Ship-
building Agreement, as the case may be;’’.
(B) Subsection (i) is amended to
read as follows:
‘‘(i)(1) Except as provided in paragraph
(2), the Secretary may not, with respect to—
‘‘(A) the general 75 percent or less
limitation contained in subsection (b)(2),
‘‘(B) the 871⁄2 percent or less limita-
tion contained in the 1st, 2nd, 4th, or 5th
proviso to subsection (b)(2) or in section
1112(b), or
‘‘(C) the 80 percent or less limitation
in the 3rd proviso to such subsection,
establish by rule, regulation, or procedure
any percentage within any such limitation
that is, or is intended to be, applied uniformly
to all guarantees or commitments to guaran-
tee made under this section that are subject
to the limitation.
‘‘(2) With respect to Export Credit Under-
standing vessels and Shipbuilding Agreement
311
vessels, the Secretary may establish by rule,
regulation, or procedure a uniform percent-
age that the Secretary determines to be con-
sistent with obligations of the United States
under the Export Credit Understanding or
the Shipbuilding Agreement, as the case may
be.’’.
(C) Section 1104B(b) (46 App.
U.S.C. 1274a(b)) is amended by strik-
ing the period at the end and insert-
ing the following:
‘‘, except that, with respect to Export Credit
Understanding 
vessels 
and 
Shipbuilding
Agreement vessels, the Secretary may estab-
lish by rule, regulation, or procedure a uni-
form percentage that the Secretary deter-
mines to be consistent with obligations of the
United States under the Export Credit Under-
standing or the Shipbuilding Agreement, as
the case may be.’’.
SEC. 205. APPLICABILITY OF TITLE XI AMENDMENTS.
(a) EFFECTIVE DATE.—
(1) IN GENERAL.—Notwithstanding any
provision of the Shipbuilding Agreement
or the Export Credit Understanding, the
312
amendments made by paragraph (8) of
section 204 shall not apply with respect
to any commitment to guarantee made
under title XI of the Merchant Marine
Act, 1936, before January 1, 1999, with re-
spect to a vessel delivered—
(A) before January 1, 2002, or
(B) in the case of unusual cir-
cumstances to which paragraph (2)
applies, as soon after January 1, 2002,
as is practicable.
(2) 
UNUSUAL
CIRCUMSTANCES.—This
paragraph applies in a case in which un-
usual circumstances beyond the control
of the parties concerned prevent the de-
livery of a vessel by January 1, 2002. As
used in this paragraph, the term ‘‘un-
usual circumstances’’ means acts of God
(other than ordinary storms or inclement
weather conditions), labor strikes, acts of
sabotage, explosions, fires, or vandalism,
and similar circumstances.
SEC. 206. WITHDRAWAL FROM THE AGREEMENT.
(a) WITHDRAWAL.—
313
(1) NOTICE.—The President shall give
notice, under Article 14 of the Shipbuild-
ing Agreement, of intent of the United
States to withdraw from the Shipbuilding
Agreement, as soon as is practicable after
one or more Shipbuilding Agreement Par-
ties give notice, under such article, of in-
tent to withdraw from the Shipbuilding
Agreement, if paragraph (2) applies.
(2) TONNAGE OF NEW CONSTRUCTION IN
WITHDRAWING
PARTIES.—This 
paragraph
applies if the combined gross tonnage of
new Shipbuilding Agreement vessels con-
structed in all Shipbuilding Agreement
Parties who have given notice to with-
draw from the Shipbuilding Agreement,
which were delivered in the calendar
year preceding the calendar year in
which the notice is given, is 15 percent or
more of the gross tonnage of new Ship-
building Agreement vessels that were
constructed in all Shipbuilding Agree-
ment Parties and were delivered in the
calendar year preceding the calendar
year in which the notice is given.
314
(3) TERMINATION OF WITHDRAWAL.—If a
Shipbuilding Agreement Party described
in paragraph (2) takes action to termi-
nate its withdrawal from the Shipbuild-
ing Agreement, so that paragraph (2)
would not apply if that Party had not
given the notice to withdraw, the Presi-
dent may take the necessary steps to ter-
minate the notice of withdrawal of the
United States from the Shipbuilding
Agreement.
(b) REINSTATEMENT OF LAWS.—If the Unit-
ed States withdraws from the Shipbuilding
Agreement, on the date on which such with-
drawal becomes effective, the amendments
made by section 204 shall be deemed not to
have been made, and the provisions of law
amended by section 204 shall, on and after
such date, be effective as if this Act had not
been enacted.
SEC. 207. OTHER LAWS NOT AFFECTED.
The Shipbuilding Agreement shall not af-
fect, directly or indirectly, the Merchant Ma-
rine Act, 1920, the Act of June 19, 1886 (46
U.S.C. App. 289), or any other provision of law
315
set forth in Accompanying Note 2 to Annex II
to the Shipbuilding Agreement, and shall not
provide any mechanism to subject any pro-
ducer of vessels in the United States to finan-
cial penalties, duties, bid restrictions, unfa-
vorable bid preferences, or withdrawal of con-
cessions under the GATT 1994 or other Uru-
guay Round Agreements, in the competition
for international commercial vessel construc-
tion or reconstruction orders because of con-
struction of vessels by United States ship-
builders for operation in the coastwise trade
of the United States.
SEC. 208. PROTECTION OF UNITED STATES INTERESTS.
Nothing in the Shipbuilding Agreement
shall be construed to prevent the United
States from taking any action which it consid-
ers necessary for the protection of essential
security interests or from invoking its sov-
ereign autority to define, for purposes of ex-
clusion from coverage under the Shipbuilding
Agreement and from any dispute or challenge
based on Annex I to the Shipbuilding Agree-
ment, ‘‘military vessel’’, ‘‘military reserve ves-
sel’’, or ‘‘essential security interest’’ on a case
316
by case basis, as determined by the Secretary
of Defense.
SEC. 209. DEFINITIONS.
As used in this title—
(1) the terms ‘‘Shipbuilding Agree-
ment’’, ‘‘Shipbuilding Agreement Party’’,
‘‘Shipbuilding Agreement Vessels’’, and
‘‘Export Credit Understanding’’ have the
meanings given those terms in sub-
sections (h), (i), (j), and (k), respectively,
of section 905 of the Merchant Marine
Act, 1936, as added by section 204(7) of
this Act; and
(2) the terms ‘‘GATT 1994’’ and ‘‘Uru-
guay Round Agreements’’ have the mean-
ings given those terms in section 2 of the
Uruguay Round Agreements Act.
TITLE III—REVENUE OFFSET
SEC. 301. PENALTIES FOR FAILURE TO DISCLOSE POSITION
THAT CERTAIN INTERNATIONAL SHIPPING
INCOME IS NOT INCLUDIBLE IN GROSS IN-
COME.
(a) IN GENERAL.—Section 883 of the Inter-
nal Revenue Code of 1986 is amended by add-
ing at the end the following new subsection: