I
103D CONGRESS
1ST SESSION
H. R. 111
To establish domestic content requirements for motor vehicles sold or
distributed in interstate commerce in the United States.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 5, 1993
Mr. BURTON of Indiana introduced the following bill; which was referred
jointly to the Committees on Energy and Commerce and Ways and Means
A BILL
To establish domestic content requirements for motor vehi-
cles sold or distributed in interstate commerce in the
United States.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Fair Practices in Auto-
motive Products Act’’.
SEC. 2. PURPOSE.
The purpose of this Act is to encourage the produc-
tion in the United States by American workers of auto-
motive products which are sold or distributed in interstate
commerce.
SEC. 3. DEFINITIONS.
(a) IN GENERAL.—As used in this Act:
(1) The term ‘‘automotive products’’ means
motor vehicles and parts for use in the production
of new motor vehicles.
(2) The term ‘‘added domestic value’’, when
used with respect to a vehicle manufacturer for any
model year, means the aggregate of—
(A) the production costs of all automotive
products sold by the vehicle manufacturer in
the United States, other than for export, during
that model year, and
(B) the export value of all automotive
products that were either—
(i) manufactured by the vehicle manu-
facturer in the United States and exported
from the United States by, or on behalf of,
such manufacturer during that model year,
or
(ii) manufactured in the United
States by any other person and purchased
by the vehicle manufacturer and exported
from the United States by, or on behalf of,
such manufacturer during that model year,
but only to the extent that the export value
of such automotive products is not in-
cluded in automotive products to which
clause (i) applies;
reduced by the aggregate appraised value, as deter-
mined for purposes of the customs laws, of all auto-
motive products that were entered by, or on behalf
of, the vehicle manufacturer during that model year.
(3) The term ‘‘domestic content ratio’’ means,
with respect to a vehicle manufacturer for any model
year, the percentage determined by multiplying by
one hundred the factor obtained by dividing—
(A) the added domestic value determined
for that manufacturer for that model year
under paragraph (2); by
(B) the production costs determined, for
purposes of paragraph (2)(A), for that manu-
facturer for that model year.
(4) The term ‘‘entered’’ means entered, or with-
drawn from warehouse for consumption, within the
customs territory of the United States.
(5) The term ‘‘export value’’ means, with re-
spect to an automotive product—
(A) the free-on-board price for which the
vehicle manufacturer sells the product for ex-
portation from the United States; or
(B) if the vehicle manufacturer sells the
product for such exportation to a buyer that
controls, is controlled by, or is under common
control with, such manufacturer, the price at
which such or similar products are freely of-
fered for free-on-board sale to all purchasers in
the principal markets of the United States in
the usual wholesale quantities and in the ordi-
nary course of trade for such exportation.
(6) The term ‘‘model year’’ means a vehicle
manufacturer’s annual production period (as deter-
mined by the Secretary) which includes January 1
of a calendar year, or if a vehicle manufacturer does
not have an annual production period, the calendar
year. A model year shall be designated by the
year in which January 1 occurs.
(7) The term ‘‘motor vehicle’’ means any three-
wheeled or four-wheeled vehicle propelled by fuel
which is manufactured primarily for use on the pub-
lic streets, roads, and highways (except any vehicle
operated exclusively on a rail or rails), and which is
rated as ten thousand pounds gross vehicle weight or
less. Such term does not include (A) any motorcycle,
or (B) any vehicle determined by the Secretary to be
an automobile capable of off-highway operation with-
SEC. 5. DOMESTIC CONTENT RATIOS FOR MODEL YEAR 1994
AND THEREAFTER.
(a) RATIOS.—In order to carry out the purpose of
this Act, for each model year beginning after January 1,
1993, the minimum domestic content ratio for a vehicle
manufacturer shall not be less than the higher of—
(1) the domestic content ratio achieved by the
vehicle manufacturer in model year 1994 reduced by
10 per centum; or
(2) the applicable minimum content ratio speci-
fied in the following table:
Number of motor vehicles produced by the
manufacturer and sold in the United
States during each year:
Minimum domestic content ratio:
Model Year 1994
Not over 100,000 .......................................
0 percent.
Over 100,000 but not over 900,000 ...........
The number, expressed as a per-
centage, determined by dividing
the number of vehicles sold by
30,000.
Over 900,000 ..............................................
30 percent.
Model Year 1995
Not over 100,000 .......................................
0 percent.
Over 100,000 but not over 900,000 ...........
The number, expressed as a per-
centage, determined by dividing
the number of vehicles sold by
15,000.
Over 900,000 ..............................................
60 percent.
Each Model Year After Model Year 1995
Not over 100,000 .......................................
0 percent.
Over 100,000 but not over 900,000 ...........
The number, expressed as a per-
centage, determined by dividing
the number of vehicles sold by
10,000.
Over 900,000 ..............................................
90 percent.
(b) ALLOCATION OF AUTOMOTIVE PRODUCTS AMONG
MANUFACTURERS.—In order to carry out the purpose of
this Act, the Secretary shall prescribe rules or allocating
automotive products among vehicle manufacturers in ap-
propriate cases such as where—
(1) a vehicle manufacturer sells automotive
products manufactured by it in the United States to
another vehicle manufacturer;
(2) two or more vehicle manufacturers in joint
venture produce automotive products in the United
States; and
(3) a vehicle manufacturer produces motor vehi-
cles for ultimate retail sale in the United States,
some of which will be sold by that manufacturer and
some by another vehicle manufacturer.
SEC. 6. INFORMATION AND REPORTS.
(a) VEHICLE MANUFACTURERS RECORDS AND IN-
FORMATION.—Each vehicle manufacturer that produces
more than 100,000 motor vehicles for sale in the United
States during any model year after model year 1993 must
establish and maintain such records, and provide such in-
formation, regarding the production and sale of auto-
motive products by it as the Secretary by rule shall require
for purposes of carrying out sections 5(a) and 7.
(b) AUTHORITY TO OBTAIN INFORMATION.—
(1) SECRETARIAL AUTHORITY.—The authority
granted to the Secretary under subsection (b)(1) of
section 505 of the Motor Vehicle Information and
Cost Saving Act (as in effect on the date of the en-
actment of this Act) to obtain information and data,
and access thereto, that is deemed advisable by the
Secretary for purposes of carrying out part V of that
Act may be used by the Secretary for purposes of
obtaining the information and data, and access
thereto, that is necessary or appropriate to carry out
sections 5(a) and 7.
(2) COURT AUTHORITY.—The authority granted
to the district courts of the United States under
subsection (b)(2) of such section 505 to enforce
compliance with action taken by the Secretary under
subsection (b)(1) of such section may be used by
such courts to enforce actions taken by the Sec-
retary pursuant to paragraph (1) for purposes of
carrying out this Act.
(3) 
DISCLOSURE
OF
INFORMATION
AND
DATA.—The Secretary shall disclose any information
and data obtained under this subsection and sub-
section (a) to the public only in accordance with sec-
tion 552 of title 5, United States Code and any mat-
ter described in subsection (b)(4) of such section
shall not be disclosed to the public, except that
where such matter may be relevant to any adminis-
trative or judicial proceeding to enforce this Act.
Such matter may be disclosed in such proceeding
only in a manner which would not result in competi-
tive damage or disadvantage, as determined by the
Secretary or a court, because of such disclosure.
(c) ANNUAL REPORTS.—As soon as practicable after
the close of each model year after January 1, 1993, the
Secretary shall prepare and make available to the public
a report setting forth the domestic content ratio achieved
by each vehicle manufacturer during such model year.
SEC. 7. ENFORCEMENT.
(a) PENALTY FOR FAILURE TO MEET DOMESTIC
CONTENT RATIOS.—
(1) IN GENERAL.—In furtherance of the pur-
pose of this Act, it is unlawful for a vehicle manu-
facturer to fail to meet for any model year the appli-
cable minimum domestic content ratio required
under section 5(a).
(2) ORDER OF SECRETARY.—If the Secretary
finds, after notice and an opportunity for a hearing
in accordance with section 554 of title 5, United
States Code, that a vehicle manufacturer has vio-
lated paragraph (1), the Secretary shall issue an
order prohibiting the vehicle manufacturer from en-
tering, or having entered on its behalf, during the
12-month period beginning on the date on which the
finding becomes final—
(A) a quantity of motor vehicles that ex-
ceeds the total quantity of motor vehicles that
was entered by, or on behalf of, that manufac-
turer during the model year in which such vio-
lation occurred reduced by the number of motor
vehicles that bears to such total quantity the
same percentage by which the vehicle manufac-
turer failed to meet the domestic content ratio
for that model year; and
(B) parts for motor vehicles in an aggre-
gate value (as appraised for purposes of the
customs laws) that exceed the total aggregate
appraised value of parts for motor vehicles that
were entered by, or on behalf of, that manufac-
turer during the model year in which such vio-
lation occurred reduced by parts of an aggre-
gate value that bear to such total aggregate
value the same percentage by which the vehicle
manufacturer failed to meet the domestic con-
tent ratio for that model year.
(3) ORDER CONTENT.—An order issued pursu-
ant to paragraph (2) shall specify the total number
of motor vehicles and the aggregate appraised value