H. R. 5110—49
zero and de minimis margins, and any margins determined
entirely under section 776.
‘‘(B) EXCEPTION.—If the estimated weighted average
dumping margins established for all exporters and produc-
ers individually investigated are zero or de minimis mar-
gins, or are determined entirely under section 776, the
administering authority may use any reasonable method
to establish the estimated all-others rate for exporters and
producers not individually investigated, including averag-
ing the estimated weighted average dumping margins
determined for the exporters and producers individually
investigated.’’.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 733(e)(2) is amended by striking ‘‘subsection
(d)(1)’’ and inserting ‘‘subsection (d)(2)’’.
(2) Section 734(f)(2)(A) is amended—
(A) in clause (i), by striking ‘‘section 733(d)(1)’’ and
inserting ‘‘section 733(d)(2)’’; and
(B) in clause (iii), by striking ‘‘section 733(d)(2)’’ and
inserting ‘‘section 733(d)(1)(B)’’.
(3) Section 734(f)(2)(B) is amended—
(A) by striking ‘‘section 733(d)(1)’’ and inserting ‘‘section
733(d)(2)’’; and
(B) by striking ‘‘section 733(d)(2)’’ and inserting ‘‘section
733(d)(1)(B)’’.
(4) Section 734(h)(3) is amended—
(A) in subparagraph (A), by striking ‘‘section 733(d)(1)’’
and inserting ‘‘section 733(d)(2)’’; and
(B) in subparagraph (B), by striking ‘‘section 733(d)(2)’’
and inserting ‘‘section 733(d)(1)(B)’’.
(5) Section 734(i)(1)(A) is amended by striking ‘‘section
733(d)(1)’’ and inserting ‘‘section 733(d)(2)’’.
(6) Section 735(c)(2)(A) is amended by striking ‘‘section
703(d)(1)’’ and inserting ‘‘section 733(d)(2)’’.
(7) Section 735(c)(2)(B) is amended by striking ‘‘section
733(d)(2)’’ and inserting ‘‘section 733(d)(1)(B)’’.
(8) Section 735(c)(3)(B) is amended by striking ‘‘section
733(d)(2)’’ and inserting ‘‘section 733(d)(1)(B)’’.
(9) Section 736(b)(1) is amended by striking ‘‘section
733(d)(1)’’ each place it appears and inserting ‘‘section
733(d)(2)’’.
(10) Section 737(a) is amended by striking ‘‘section
733(d)(2)’’ each place it appears in the heading and in the
text and inserting ‘‘section 733(d)(1)(B)’’.
SEC. 220. REVIEW OF DETERMINATIONS.
(a) IN GENERAL.—Section 751 (19 U.S.C. 1675) is amended
to read as follows:
‘‘SEC. 751. ADMINISTRATIVE REVIEW OF DETERMINATIONS.
‘‘(a) PERIODIC REVIEW OF AMOUNT OF DUTY.—
‘‘(1) IN
GENERAL.—At least once during each 12-month
period beginning on the anniversary of the date of publication
of a countervailing duty order under this title or under section
303 of this Act, an antidumping duty order under this title
or a finding under the Antidumping Act, 1921, or a notice
of the suspension of an investigation, the administering author-
ity, if a request for such a review has been received and
H. R. 5110—50
after publication of notice of such review in the Federal Reg-
ister, shall—
‘‘(A) review and determine the amount of any net
countervailable subsidy,
‘‘(B) review, and determine (in accordance with para-
graph (2)), the amount of any antidumping duty, and
‘‘(C) review the current status of, and compliance with,
any agreement by reason of which an investigation was
suspended, 
and 
review 
the 
amount 
of 
any 
net
countervailable subsidy or dumping margin involved in
the agreement,
and shall publish in the Federal Register the results of such
review, together with notice of any duty to be assessed, esti-
mated duty to be deposited, or investigation to be resumed.
‘‘(2) DETERMINATION OF ANTIDUMPING DUTIES.—
‘‘(A) IN GENERAL.—For the purpose of paragraph (1)(B),
the administering authority shall determine—
‘‘(i) the normal value and export price (or con-
structed export price) of each entry of the subject mer-
chandise, and
‘‘(ii) the dumping margin for each such entry.
‘‘(B) DETERMINATION
OF
ANTIDUMPING
OR
COUNTER-
VAILING
DUTIES
FOR
NEW
EXPORTERS
AND
PRODUCERS.—
‘‘(i) IN GENERAL.—If the administering authority
receives a request from an exporter or producer of
the subject merchandise establishing that—
‘‘(I) such exporter or producer did not export
the merchandise that was the subject of an anti-
dumping duty or countervailing duty order to the
United States (or, in the case of a regional indus-
try, did not export the subject merchandise for
sale in the region concerned) during the period
of investigation, and
‘‘(II) such exporter or producer is not affiliated
(within the meaning of section 771(33)) with any
exporter or producer who exported the subject mer-
chandise to the United States (or in the case of
a regional industry, who exported the subject mer-
chandise for sale in the region concerned) during
that period,
the administering authority shall conduct a review
under this subsection to establish an individual
weighted average dumping margin or an individual
countervailing duty rate (as the case may be) for such
exporter or producer.
‘‘(ii) TIME
FOR
REVIEW
UNDER
CLAUSE
(i).—The
administering authority shall commence a review
under clause (i) in the calendar month beginning
after—
‘‘(I) the end of the 6-month period beginning
on the date of the countervailing duty or antidump-
ing duty order under review, or
‘‘(II) the end of any 6-month period occurring
thereafter,
if the request for the review is made during that 6-
month period.
H. R. 5110—51
‘‘(iii) POSTING BOND OR SECURITY.—The administer-
ing authority shall, at the time a review under this
subparagraph is initiated, direct the Customs Service
to allow, at the option of the importer, the posting,
until the completion of the review, of a bond or security
in lieu of a cash deposit for each entry of the subject
merchandise.
‘‘(iv) TIME
LIMITS.—The administering authority
shall make a preliminary determination in a review
conducted under this subparagraph within 180 days
after the date on which the review is initiated, and
a final determination within 90 days after the date
the preliminary determination is issued, except that
if the administering authority concludes that the case
is extraordinarily complicated, it may extend the 180-
day period to 300 days and may extend the 90-day
period to 150 days.
‘‘(C) RESULTS OF DETERMINATIONS.—The determination
under this paragraph shall be the basis for the assessment
of countervailing or antidumping duties on entries of mer-
chandise covered by the determination and for deposits
of estimated duties.
‘‘(3) TIME LIMITS.—
‘‘(A) PRELIMINARY
AND
FINAL
DETERMINATIONS.—The
administering authority shall make a preliminary deter-
mination under subparagraph (A), (B), or (C) of paragraph
(1) within 245 days after the last day of the month in
which occurs the anniversary of the date of publication
of the order, finding, or suspension agreement for which
the review under paragraph (1) is requested, and a final
determination under paragraph (1) within 120 days after
the date on which the preliminary determination is pub-
lished. If it is not practicable to complete the review within
the foregoing time, the administering authority may extend
that 245-day period to 365 days and may extend that
120-day period to 180 days. The administering authority
may extend the time for making a final determination
without extending the time for making a preliminary deter-
mination, if such final determination is made not later
than 300 days after the date on which the preliminary
determination is published.
‘‘(B) LIQUIDATION
OF
ENTRIES.—If the administering
authority orders any liquidation of entries pursuant to
a review under paragraph (1), such liquidation shall be
made promptly and, to the greatest extent practicable,
within 90 days after the instructions to Customs are issued.
In any case in which liquidation has not occurred within
that 90-day period, the Secretary of the Treasury shall,
upon the request of the affected party, provide an expla-
nation thereof.
‘‘(C) EFFECT
OF
PENDING
REVIEW
UNDER
SECTION
516A.—In a case in which a final determination under para-
graph (1) is under review under section 516A and a liquida-
tion of entries covered by the determination is enjoined
under section 516A(c)(2) or suspended under section
516A(g)(5)(C), the administering authority shall, within 10
days after the final disposition of the review under section
H. R. 5110—52
516A, transmit to the Federal Register for publication the
final disposition and issue instructions to the Customs
Service with respect to the liquidation of entries pursuant
to the review. In such a case, the 90-day period referred
to in subparagraph (B) shall begin on the day on which
the administering authority issues such instructions.
‘‘(4) ABSORPTION
OF
ANTIDUMPING
DUTIES.—During any
review under this subsection initiated 2 years or 4 years after
the publication of an antidumping duty order under section
736(a), the administering authority, if requested, shall deter-
mine whether antidumping duties have been absorbed by a
foreign producer or exporter subject to the order if the subject
merchandise is sold in the United States through an importer
who is affiliated with such foreign producer or exporter. The
administering authority shall notify the Commission of its find-
ings regarding such duty absorption for the Commission to
consider in conducting a review under subsection (c).
‘‘(b) REVIEWS BASED ON CHANGED CIRCUMSTANCES.—
‘‘(1) IN GENERAL.—Whenever the administering authority
or the Commission receives information concerning, or a request
from an interested party for a review of—
‘‘(A) a final affirmative determination that resulted
in an antidumping duty order under this title or a finding
under the Antidumping Act, 1921, or in a countervailing
duty order under this title or section 303,
‘‘(B) a suspension agreement accepted under section
704 or 734, or
‘‘(C) a final affirmative determination resulting from
an investigation continued pursuant to section 704(g) or
734(g),
which shows changed circumstances sufficient to warrant a
review of such determination or agreement, the administering
authority or the Commission (as the case may be) shall conduct
a review of the determination or agreement after publishing
notice of the review in the Federal Register.
‘‘(2) COMMISSION REVIEW.—In conducting a review under
this subsection, the Commission shall—
‘‘(A) in the case of a countervailing duty order or anti-
dumping duty order or finding, determine whether revoca-
tion of the order or finding is likely to lead to continuation
or recurrence of material injury,
‘‘(B) in the case of a determination made pursuant
to section 704(h)(2) or 734(h)(2), determine whether the
suspension agreement continues to eliminate completely
the injurious effects of imports of the subject merchandise,
and
‘‘(C) in the case of an affirmative determination result-
ing from an investigation continued under section 704(g)
or 734(g), determine whether termination of the suspended
investigation is likely to lead to continuation or recurrence
of material injury.
‘‘(3) BURDEN OF PERSUASION.—During a review conducted
by the Commission under this subsection—
‘‘(A) the party seeking revocation of an order or finding
described in paragraph (1)(A) shall have the burden of
persuasion with respect to whether there are changed cir-
cumstances sufficient to warrant such revocation, and
H. R. 5110—53
‘‘(B) the party seeking termination of a suspended
investigation or a suspension agreement shall have the
burden of persuasion with respect to whether there are
changed circumstances sufficient to warrant such termi-
nation.
‘‘(4) LIMITATION ON PERIOD FOR REVIEW.—In the absence
of good cause shown—
‘‘(A) the Commission may not review a determination
made under section 705(b) or 735(b), or an investigation
suspended under section 704 or 734, and
‘‘(B) the administering authority may not review a
determination made under section 705(a) or 735(a), or an
investigation suspended under section 704 or 734,
less than 24 months after the date of publication of notice
of that determination or suspension.
‘‘(c) FIVE-YEAR REVIEW.—
‘‘(1) IN
GENERAL.—Notwithstanding subsection (b) and
except in the case of a transition order defined in paragraph
(6), 5 years after the date of publication of—
‘‘(A) a countervailing duty order (other than a counter-
vailing duty order to which subparagraph (B) applies or
which was issued without an affirmative determination
of injury by the Commission under section 303), an anti-
dumping duty order, or a notice of suspension of an inves-
tigation, described in subsection (a)(1),
‘‘(B) a notice of injury determination under section
753 with respect to a countervailing duty order, or
‘‘(C) a determination under this section to continue
an order or suspension agreement,
the administering authority and the Commission shall conduct
a review to determine, in accordance with section 752, whether
revocation of the countervailing or antidumping duty order
or termination of the investigation suspended under section
704 or 734 would be likely to lead to continuation or recurrence
of dumping or a countervailable subsidy (as the case may
be) and of material injury.
‘‘(2) NOTICE OF INITIATION OF REVIEW.—Not later than 30
days before the fifth anniversary of the date described in para-
graph (1), the administering authority shall publish in the
Federal Register a notice of initiation of a review under this
subsection and request that interested parties submit—
‘‘(A) a statement expressing their willingness to partici-
pate in the review by providing information requested by
the administering authority and the Commission,
‘‘(B) a statement regarding the likely effects of revoca-
tion of the order or termination of the suspended investiga-
tion, and
‘‘(C) such other information or industry data as the
administering authority or the Commission may specify.
‘‘(3) RESPONSES TO NOTICE OF INITIATION.—
‘‘(A) NO RESPONSE.—If no interested party responds
to the notice of initiation under this subsection, the admin-
istering authority shall issue a final determination, within
90 days after the initiation of a review, revoking the order
or terminating the suspended investigation to which such
notice relates. For purposes of this paragraph, an interested
H. R. 5110—54
party means a party described in section 771(9) (C), (D),
(E), (F), or (G).
‘‘(B) INADEQUATE RESPONSE.—If interested parties pro-
vide inadequate responses to a notice of initiation, the
administering authority, within 120 days after the initi-
ation of the review, or the Commission, within 150 days
after such initiation, may issue, without further investiga-
tion, a final determination based on the facts available,
in accordance with section 776.
‘‘(4) WAIVER
OF
PARTICIPATION
BY
CERTAIN
INTERESTED
PARTIES.—
‘‘(A) IN
GENERAL.—An interested party described in
section 771(9) (A) or (B) may elect not to participate in
a review conducted by the administering authority under
this subsection and to participate only in the review con-
ducted by the Commission under this subsection.
‘‘(B) EFFECT
OF
WAIVER.—In a review in which an
interested party waives its participation pursuant to this
paragraph, the administering authority shall conclude that
revocation of the order or termination of the investigation
would be likely to lead to continuation or recurrence of
dumping or a countervailable subsidy (as the case may
be) with respect to that interested party.
‘‘(5) CONDUCT OF REVIEW.—
‘‘(A) TIME LIMITS FOR COMPLETION OF REVIEW.—Unless
the review has been completed pursuant to paragraph (3)
or paragraph (4) applies, the administering authority shall
make its final determination pursuant to section 752 (b)
or (c) within 240 days after the date on which a review
is initiated under this subsection. If the administering
authority makes a final affirmative determination, the
Commission shall make its final determination pursuant
to section 752(a) within 360 days after the date on which
a review is initiated under this subsection.
‘‘(B) EXTENSION
OF
TIME
LIMIT.—The administering
authority or the Commission (as the case may be) may
extend the period of time for making their respective deter-
minations under this subsection by not more than 90 days,
if the administering authority or the Commission (as the
case may be) determines that the review is extraordinarily
complicated. In a review in which the administering author-
ity extends the time for making a final determination,
but the Commission does not extend the time for making
a determination, the Commission’s determination shall be
made not later than 120 days after the date on which
the final determination of the administering authority is
published.
‘‘(C) EXTRAORDINARILY COMPLICATED.—For purposes of
this subsection, the administering authority or the Commis-
sion (as the case may be) may treat a review as extraor-
dinarily complicated if—
‘‘(i) there is a large number of issues,
‘‘(ii) the issues to be considered are complex,
‘‘(iii) there is a large number of firms involved,
‘‘(iv) the orders or suspended investigations have
been grouped as described in subparagraph (D), or
‘‘(v) it is a review of a transition order.
H. R. 5110—55
‘‘(D) GROUPED REVIEWS.—The Commission, in consulta-
tion with the administering authority, may group orders
or suspended investigations for review if it considers that
such grouping is appropriate and will promote administra-
tive efficiency. Where orders or suspended investigations
have been grouped, the Commission shall, subject to
subparagraph (B), make its final determination under this
subsection not later than 120 days after the date that
the administering authority publishes notice of its final
determination with respect to the last order or agreement
in the group.
‘‘(6) SPECIAL TRANSITION RULES.—
‘‘(A) SCHEDULE FOR REVIEWS OF TRANSITION ORDERS.—
‘‘(i) INITIATION.—The administering authority shall
begin its review of transition orders in the 42d calendar
month after the date such orders are issued. A review
of all transition orders shall be initiated not later than
the 5th anniversary after the date such orders are
issued.
‘‘(ii) COMPLETION.—A review of a transition order
shall be completed not later than 18 months after
the date such review is initiated. Reviews of all transi-
tion orders shall be completed not later than 18 months
after the 5th anniversary of the date such orders are
issued.
‘‘(iii) SUBSEQUENT REVIEWS.—The time limits set
forth in clauses (i) and (ii) shall be applied to all
subsequent 5-year reviews of transition orders by
substituting ‘date of the determination to continue such
orders’ for ‘date such orders are issued’.
‘‘(iv) REVOCATION AND TERMINATION.—No transi-
tion order may be revoked under this subsection before
the date that is 5 years after the date the WTO Agree-
ment enters into force with respect to the United
States.
‘‘(B) SEQUENCE OF TRANSITION REVIEWS.—The admin-
istering authority, in consultation with the Commission,
shall determine such sequence of review of transition orders
as it deems appropriate to promote administrative effi-
ciency. To the extent practicable, older orders shall be
reviewed first.
‘‘(C) DEFINITION OF TRANSITION ORDER.—For purposes
of this section, the term ‘transition order’ means—
‘‘(i) a countervailing duty order under this title
or under section 303,
‘‘(ii) an antidumping duty order under this title
or a finding under the Antidumping Act, 1921, or
‘‘(iii) a suspension of an investigation under section
704 or 734,
which is in effect on the date the WTO Agreement enters
into force with respect to the United States.
‘‘(D) ISSUE DATE FOR TRANSITION ORDERS.—For pur-
poses of this subsection, a transition order shall be treated
as issued on the date the WTO Agreement enters into
force with respect to the United States, if such order is
based on an investigation conducted by both the admin-
istering authority and the Commission.
H. R. 5110—56
‘‘(d) REVOCATION OF ORDER OR FINDING; TERMINATION OF SUS-
PENDED INVESTIGATION.—
‘‘(1) IN GENERAL.—The administering authority may revoke,
in whole or in part, a countervailing duty order or an antidump-
ing duty order or finding, or terminate a suspended investiga-
tion, after review under subsection (a) or (b). The administering
authority shall not revoke, in whole or in part, a countervailing
duty order or terminate a suspended investigation on the basis
of any export taxes, duties, or other charges levied on the
export of the subject merchandise to the United States which
are specifically intended to offset the countervailable subsidy
received.
‘‘(2) FIVE-YEAR REVIEWS.—In the case of a review conducted
under subsection (c), the administering authority shall revoke
a countervailing duty order or an antidumping duty order or
finding, or terminate a suspended investigation, unless—
‘‘(A) the administering authority makes a determina-
tion that dumping or a countervailable subsidy, as the
case may be, would be likely to continue or recur, and
‘‘(B) the Commission makes a determination that mate-
rial injury would be likely to continue or recur as described
in section 752(a).
‘‘(3) APPLICATION
OF
REVOCATION
OR
TERMINATION.—A
determination under this section to revoke an order or finding
or terminate a suspended investigation shall apply with respect
to unliquidated entries of the subject merchandise which are
entered, or withdrawn from warehouse, for consumption on
or after the date determined by the administering authority.
‘‘(e) HEARINGS.—Whenever the administering authority or the
Commission conducts a review under this section, it shall, upon
the request of an interested party, hold a hearing in accordance
with section 774(b) in connection with that review.
‘‘(f) DETERMINATION THAT BASIS FOR SUSPENSION NO LONGER
EXISTS.—If the determination of the Commission under subsection
(b)(2)(B) is negative, the suspension agreement shall be treated
as not accepted, beginning on the date of publication of the Commis-
sion’s determination, and the administering authority and the
Commission shall proceed, under section 704(i) or 734(i), as if
the suspension agreement had been violated on that date, except
that no duty under any order subsequently issued shall be assessed
on merchandise entered, or withdrawn from warehouse, for
consumption before that date.
‘‘(g) CORRECTION OF MINISTERIAL ERRORS.—The administering
authority shall establish procedures for the correction of ministerial
errors in final determinations within a reasonable time after the
determinations are issued under this section. Such procedures shall
ensure opportunity for interested parties 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 copy-
ing, duplication, or the like, and any other type of unintentional
error which the administering authority considers ministerial.’’.
(b) REVIEW OF DETERMINATIONS.—
(1) IN GENERAL.—Section 516A(a)(1) (19 U.S.C. 1516A(a)(1))
is amended by striking ‘‘or’’ at the end of subparagraph (B),
by inserting ‘‘or’’ at the end of subparagraph (C), and by insert-
H. R. 5110—57
ing immediately after subparagraph (C) the following new
subparagraph:
‘‘(D) a final determination by the administering author-
ity or the Commission under section 751(c)(3),’’.
(2) TECHNICAL
AMENDMENTS.—Section 516A(b)(1) (19
U.S.C. 1516a(b)(1)) is amended—
(A) in subparagraph (A), by striking ‘‘under paragraph
(1) of subsection (a)’’ and inserting ‘‘under subparagraph
(A), (B), or (C) of subsection (a)(1)’’, and
(B) in subparagraph (B)—
(i) by striking ‘‘(B) in an action’’ and inserting
‘‘(B)(i) in an action’’,
(ii) by striking the end period and inserting ‘‘,
or’’, and
(iii) by adding at the end the following:
‘‘(ii) in an action brought under paragraph (1)(D)
of subsection (a), to be arbitrary, capricious, an abuse
of discretion, or otherwise not in accordance with law.’’.
(c) CONFORMING AMENDMENT.—Section 504 (19 U.S.C. 1504)
is amended—
(1) in subsection (a), by inserting ‘‘except as provided in
section 751(a)(3),’’ before ‘‘an entry of merchandise not liq-
uidated’’, and
(2) in subsection (d), by striking ‘‘When a suspension’’ and
inserting ‘‘Except as provided in section 751(a)(3), when a
suspension’’.
SEC. 221. REVIEW DETERMINATIONS.
(a) IN GENERAL.—Chapter 1 of subtitle C of title VII (19 U.S.C.
1675) is amended by adding at the end the following new section:
‘‘SEC. 752. SPECIAL RULES FOR SECTION 751(b) AND 751(c) REVIEWS.
‘‘(a) DETERMINATION
OF LIKELIHOOD
OF CONTINUATION
OR
RECURRENCE OF MATERIAL INJURY.—
‘‘(1) IN
GENERAL.—In a review conducted under section
751 (b) or (c), the Commission shall determine whether revoca-
tion of an order, or termination of a suspended investigation,
would be likely to lead to continuation or recurrence of material
injury within a reasonably foreseeable time. The Commission
shall consider the likely volume, price effect, and impact of
imports of the subject merchandise on the industry if the order
is revoked or the suspended investigation is terminated. The
Commission shall take into account—
‘‘(A) its prior injury determinations, including the vol-
ume, price effect, and impact of imports of the subject
merchandise on the industry before the order was issued
or the suspension agreement was accepted,
‘‘(B) whether any improvement in the state of the
industry is related to the order or the suspension
agreement,
‘‘(C) whether the industry is vulnerable to material
injury if the order is revoked or the suspension agreement
is terminated, and
‘‘(D) in an antidumping proceeding under section
751(c), the findings of the administering authority regard-
ing duty absorption under section 751(a)(4).
‘‘(2) VOLUME.—In evaluating the likely volume of imports
of the subject merchandise if the order is revoked or the sus-
H. R. 5110—58
pended investigation is terminated, the Commission shall con-
sider whether the likely volume of imports of the subject
merchandise would be significant if the order is revoked or
the suspended investigation is terminated, either in absolute
terms or relative to production or consumption in the United
States. In so doing, the Commission shall consider all relevant
economic factors, including—
‘‘(A) any likely increase in production capacity or exist-
ing unused production capacity in the exporting country,
‘‘(B) existing inventories of the subject merchandise,
or likely increases in inventories,
‘‘(C) the existence of barriers to the importation of
such merchandise into countries other than the United
States, and
‘‘(D) the potential for product-shifting if production
facilities in the foreign country, which can be used to
produce the subject merchandise, are currently being used
to produce other products.
‘‘(3) PRICE.—In evaluating the likely price effects of imports
of the subject merchandise if the order is revoked or the sus-
pended investigation is terminated, the Commission shall con-
sider whether—
‘‘(A) there is likely to be significant price underselling
by imports of the subject merchandise as compared to
domestic like products, and
‘‘(B) imports of the subject merchandise are likely to
enter the United States at prices that otherwise would
have a significant depressing or suppressing effect on the
price of domestic like products.
‘‘(4) IMPACT ON THE INDUSTRY.—In evaluating the likely
impact of imports of the subject merchandise on the industry
if the order is revoked or the suspended investigation is termi-
nated, the Commission shall consider all relevant economic
factors which are likely to have a bearing on the state of
the industry in the United States, including, but not limited
to—
‘‘(A) likely declines in output, sales, market share, prof-
its, productivity, return on investments, and utilization
of capacity,
‘‘(B) likely negative effects on cash flow, inventories,
employment, wages, growth, ability to raise capital, and
investment, and
‘‘(C) likely negative effects on the existing development
and production efforts of the industry, including efforts
to develop a derivative or more advanced version of the
domestic like product.
The Commission shall evaluate all relevant economic factors
described in this paragraph within the context of the business
cycle and the conditions of competition that are distinctive
to the affected industry.
‘‘(5) BASIS FOR DETERMINATION.—The presence or absence
of any factor which the Commission is required to consider
under this subsection shall not necessarily give decisive guid-
ance with respect to the Commission’s determination of whether
material injury is likely to continue or recur within a reasonably
foreseeable time if the order is revoked or the suspended inves-
tigation is terminated. In making that determination, the
H. R. 5110—59
Commission shall consider that the effects of revocation or
termination may not be imminent, but may manifest them-
selves only over a longer period of time.
‘‘(6) MAGNITUDE
OF
MARGIN
OF
DUMPING
AND
NET
COUNTERVAILABLE SUBSIDY; NATURE OF COUNTERVAILABLE SUB-
SIDY.—In making a determination under section 751 (b) or
(c), the Commission may consider the magnitude of the margin
of dumping or the magnitude of the net countervailable subsidy.
If a countervailable subsidy is involved the Commission shall
consider 
information 
regarding 
the 
nature 
of 
the
countervailable subsidy and whether the subsidy is a subsidy
described in Article 3 or 6.1 of the Subsidies Agreement.
‘‘(7) CUMULATION.—For purposes of this subsection, the
Commission may cumulatively assess the volume and effect
of imports of the subject merchandise from all countries with
respect to which reviews under section 751 (b) or (c) were
initiated on the same day, if such imports would be likely
to compete with each other and with domestic like products
in the United States market. The Commission shall not cumula-
tively assess the volume and effects of imports of the subject
merchandise in a case in which it determines that such imports
are likely to have no discernible adverse impact on the domestic
industry.
‘‘(8) SPECIAL RULE FOR REGIONAL INDUSTRIES.—In a review
under section 751 (b) or (c) involving a regional industry, the
Commission may base its determination on the regional indus-
try defined in the original investigation under this title, another
region that satisfies the criteria established in section 771(4)(C),
or the United States as a whole. In determining if a regional
industry analysis is appropriate for the determination in the
review, the Commission shall consider whether the criteria
established in section 771(4)(C) are likely to be satisfied if
the order is revoked or the suspended investigation is
terminated.
‘‘(b) DETERMINATION
OF LIKELIHOOD
OF CONTINUATION
OR
RECURRENCE OF A COUNTERVAILABLE SUBSIDY.—
‘‘(1) IN
GENERAL.—In a review conducted under section
751(c), the administering authority shall determine whether
revocation of a countervailing duty order or termination of
a suspended investigation under section 704 would be likely
to lead to continuation or recurrence of a countervailable sub-
sidy. The administering authority shall consider—
‘‘(A) the net countervailable subsidy determined in the
investigation and subsequent reviews, and
‘‘(B) whether any change in the program which gave
rise to the net countervailable subsidy described in
subparagraph (A) has occurred that is likely to affect that
net countervailable subsidy.
‘‘(2) CONSIDERATION OF OTHER FACTORS.—If good cause is
shown, the administering authority shall also consider—
‘‘(A) programs determined to provide countervailable
subsidies in other investigations or reviews under this title,
but only to the extent that such programs—
‘‘(i) can potentially be used by the exporters or
producers subject to the review under section 751(c),
and
H. R. 5110—60
‘‘(ii) did not exist at the time that the countervail-
ing duty order was issued or the suspension agreement
was accepted, and
‘‘(B) programs newly alleged to provide countervailable
subsidies but only to the extent that the administering
authority makes an affirmative countervailing duty deter-
mination with respect to such programs and with respect
to the exporters or producers subject to the review.
‘‘(3) NET COUNTERVAILABLE SUBSIDY.—The administering
authority 
shall 
provide 
to 
the 
Commission 
the 
net
countervailable subsidy that is likely to prevail if the order
is revoked or the suspended investigation is terminated. The
administering 
authority 
shall 
normally 
choose 
a 
net
countervailable subsidy that was determined under section 705
or subsection (a) or (b)(1) of section 751.
‘‘(4) SPECIAL RULE.—
‘‘(A) TREATMENT
OF
ZERO
AND
DE
MINIMIS
RATES.—
A net countervailable subsidy described in paragraph (1)(A)
that is zero or de minimis shall not by itself require the
administering authority to determine that revocation of
a countervailing duty order or termination of a suspended
investigation would not be likely to lead to continuation
or recurrence of a countervailable subsidy.
‘‘(B) APPLICATION OF DE MINIMIS STANDARDS.—For pur-
poses of this paragraph, the administering authority shall
apply the de minimis standards applicable to reviews con-
ducted under subsections (a) and (b)(1) of section 751.
‘‘(c) DETERMINATION
OF
LIKELIHOOD
OF
CONTINUATION
OR
RECURRENCE OF DUMPING.—
‘‘(1) IN
GENERAL.—In a review conducted under section
751(c), the administering authority shall determine whether
revocation of an antidumping duty order or termination of
a suspended investigation under section 734 would be likely
to lead to continuation or recurrence of sales of the subject
merchandise at less than fair value. The administering author-
ity shall consider—
‘‘(A) the weighted average dumping margins deter-
mined in the investigation and subsequent reviews, and
‘‘(B) the volume of imports of the subject merchandise
for the period before and the period after the issuance
of the antidumping duty order or acceptance of the suspen-
sion agreement.
‘‘(2) CONSIDERATION OF OTHER FACTORS.—If good cause is
shown, the administering authority shall also consider such
other price, cost, market, or economic factors as it deems
relevant.
‘‘(3) MAGNITUDE OF THE MARGIN OF DUMPING.—The admin-
istering authority shall provide to the Commission the mag-
nitude of the margin of dumping that is likely to prevail if
the order is revoked or the suspended investigation is termi-
nated. The administering authority shall normally choose a
margin that was determined under section 735 or under sub-
section (a) or (b)(1) of section 751.
‘‘(4) SPECIAL RULE.—
‘‘(A) TREATMENT OF ZERO OR DE MINIMIS MARGINS.—
A dumping margin described in paragraph (1)(A) that is
zero or de minimis shall not by itself require the admin-
H. R. 5110—61
istering authority to determine that revocation of an
antidumping duty order or termination of a suspended
investigation would not be likely to lead to continuation
or recurrence of sales at less than fair value.
‘‘(B) APPLICATION OF DE MINIMIS STANDARDS.—For pur-
poses of this paragraph, the administering authority shall
apply the de minimis standards applicable to reviews con-
ducted under subsections (a) and (b) of section 751.’’.
(b) AFFIRMATIVE DETERMINATIONS BY DIVIDED COMMISSION.—
Section 771(11) (19 U.S.C. 1677(11)) is amended by inserting ‘‘,
including a determination under section 751,’’ after ‘‘determination
by the Commission’’.
(c) CONFORMING AMENDMENT.—The table of contents for title
VII is amended by inserting after the item relating to section
751 the following:
‘‘Sec. 752. Special rules for section 751(b) and 751(c) reviews.’’.
SEC. 222. DEFINITIONS.
(a) INDUSTRY.—
(1) IN
GENERAL.—Subparagraphs (A) and (B) of section
771(4) (19 U.S.C. 1677(4) (A) and (B)) are amended to read
as follows:
‘‘(A) IN
GENERAL.—The term ‘industry’ means the
producers as a whole of a domestic like product, or those
producers whose collective output of a domestic like product
constitutes a major proportion of the total domestic produc-
tion of the product.
‘‘(B) RELATED PARTIES.—
‘‘(i) If a producer of a domestic like product and
an exporter or importer of the subject merchandise
are related parties, or if a producer of the domestic
like product is also an importer of the subject merchan-
dise, the producer may, in appropriate circumstances,
be excluded from the industry.
‘‘(ii) For purposes of clause (i), a producer and
an exporter or importer shall be considered to be
related parties, if—
‘‘(I) the producer directly or indirectly controls
the exporter or importer,
‘‘(II) the exporter or importer directly or
indirectly controls the producer,
‘‘(III) a third party directly or indirectly con-
trols the producer and the exporter or importer,
or
‘‘(IV) the producer and the exporter or
importer directly or indirectly control a third party
and there is reason to believe that the relationship
causes the producer 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 posi-
tion to exercise restraint or direction over the other
party.’’.
(2) REGIONAL
INDUSTRY.—Section 771(4)(C) (19 U.S.C.
1677(4)(C)) is amended by adding at the end the following
new sentence: ‘‘The term ‘regional industry’ means the domestic
H. R. 5110—62
producers within a region who are treated as a separate indus-
try under this subparagraph.’’.
(b) IMPACT ON AFFECTED DOMESTIC INDUSTRY.—
(1) 
IN
GENERAL.—Section 
771(7)(C)(iii) 
(19 
U.S.C.
1677(7)(C)(iii)) is amended—
(A) by striking ‘‘and’’ at the end of subclause (III),
and
(B) by striking the period at the end of subclause
(IV) and inserting ‘‘, and
‘‘(V) in a proceeding under subtitle B, the mag-
nitude of the margin of dumping.’’.
(2) CAPTIVE
PRODUCTION.—Section 771(7)(C) (19 U.S.C.
1677(7)(C)) is amended by striking clause (iv) and inserting
the following:
‘‘(iv) CAPTIVE PRODUCTION.—If domestic producers
internally transfer significant production of the domes-
tic like product for the production of a downstream
article and sell significant production of the domestic
like product in the merchant market, and the Commis-
sion finds that—
‘‘(I) the domestic like product produced that
is internally transferred for processing into that
downstream article does not enter the merchant
market for the domestic like product,
‘‘(II) the domestic like product is the predomi-
nant material input in the production of that down-
stream article, and
‘‘(III) the production of the domestic like prod-
uct sold in the merchant market is not generally
used in the production of that downstream article,
then the Commission, in determining market share
and the factors affecting financial performance set forth
in clause (iii), shall focus primarily on the merchant
market for the domestic like product.’’.
(3) 
TECHNICAL
CORRECTION.—Section 
771(7)(C)(iii) 
is
amended by striking ‘‘subparagraph (B)(iii)’’ and inserting
‘‘subparagraph (B)(i)(III)’’.
(c) DETERMINATION
OF THREAT
OF INJURY.—Clauses (i) and
(ii) of section 771(7)(F) (19 U.S.C. 1677(7)(F) (i) and (ii)) are
amended to read as follows:
‘‘(i) IN
GENERAL.—In determining whether an
industry in the United States is threatened with mate-
rial injury by reason of imports (or sales for importa-
tion) of the subject merchandise, the Commission shall
consider, among other relevant economic factors—
‘‘(I) if a countervailable subsidy is involved,
such information as may be presented to it by
the administering authority as to the nature of
the subsidy (particularly as to whether the
countervailable subsidy is a subsidy described in
Article 3 or 6.1 of the Subsidies Agreement), and
whether imports of the subject merchandise are
likely to increase,
‘‘(II) any existing unused production capacity
or imminent, substantial increase in production
capacity in the exporting country indicating the
likelihood of substantially increased imports of the
H. R. 5110—63
subject merchandise into the United States, taking
into account the availability of other export mar-
kets to absorb any additional exports,
‘‘(III) a significant rate of increase of the vol-
ume or market penetration of imports of the sub-
ject merchandise indicating the likelihood of
substantially increased imports,
‘‘(IV) whether imports of the subject merchan-
dise are entering at prices that are likely to have
a significant depressing or suppressing effect on
domestic prices, and are likely to increase demand
for further imports,
‘‘(V) inventories of the subject merchandise,
‘‘(VI) the potential for product-shifting if
production facilities in the foreign country, which
can be used to produce the subject merchandise,
are currently being used to produce other products,
‘‘(VII) in any investigation under this title
which involves imports of both a raw agricultural
product 
(within 
the 
meaning 
of 
paragraph
(4)(E)(iv)) and any product processed from such
raw agricultural product, the likelihood that there
will be increased imports, by reason of product
shifting, if there is an affirmative determination
by the Commission under section 705(b)(1) or
735(b)(1) with respect to either the raw agricul-
tural product or the processed agricultural product
(but not both),
‘‘(VIII) the actual and potential negative
effects on the existing development and production
efforts of the domestic industry, including efforts
to develop a derivative or more advanced version
of the domestic like product, and
‘‘(IX) any other demonstrable adverse trends
that indicate the probability that there is likely
to be material injury by reason of imports (or
sale for importation) of the subject merchandise
(whether or not it is actually being imported at
the time).
‘‘(ii) BASIS FOR DETERMINATION.—The Commission
shall consider the factors set forth in clause (i) as
a whole in making a determination of whether further
dumped or subsidized imports are imminent and
whether material injury by reason of imports would
occur unless an order is issued or a suspension agree-
ment is accepted under this title. The presence or
absence of any factor which the Commission is required
to consider under clause (i) shall not necessarily give
decisive guidance with respect to the determination.
Such a determination may not be made on the basis
of mere conjecture or supposition.’’.
(d) NEGLIGIBLE IMPORTS.—Section 771 (19 U.S.C. 1677) is
amended—
(1) in paragraph (7) by striking clause (v) of subparagraph
(C), and
(2) by adding at the end the following:
‘‘(24) NEGLIGIBLE IMPORTS.—
H. R. 5110—64
‘‘(A) IN GENERAL.—
‘‘(i) LESS
THAN
PERCENT.—Except as provided
in clauses (ii) and (iv), imports from a country of mer-
chandise corresponding to a domestic like product
identified by the Commission are ‘negligible’ if such
imports account for less than 3 percent of the volume
of all such merchandise imported into the United
States in the most recent 12-month period for which
data are available that precedes—
‘‘(I) the filing of the petition under section
702(b) or 732(b), or
‘‘(II) the initiation of the investigation, if the
investigation was initiated under section 702(a)
or 732(a).
‘‘(ii) EXCEPTION.—Imports that would otherwise be
negligible under clause (i) shall not be negligible if
the aggregate volume of imports of the merchandise
from all countries described in clause (i) with respect
to which investigations were initiated on the same
day exceeds 7 percent of the volume of all such mer-
chandise imported into the United States during the
applicable 12-month period.
‘‘(iii) DETERMINATION OF AGGREGATE VOLUME.—In
determining aggregate volume under clause (ii) or (iv),
the Commission shall not consider imports from any
country specified in paragraph (7)(G)(ii).
‘‘(iv) NEGLIGIBILITY IN THREAT ANALYSIS.—Notwith-
standing clauses (i) and (ii), the Commission shall not
treat imports as negligible if it determines that there
is a potential that imports from a country described
in clause (i) will imminently account for more than
3 percent of the volume of all such merchandise
imported into the United States, or that the aggregate
volumes of imports from all countries described in
clause (ii) will imminently exceed 7 percent of the
volume of all such merchandise imported into the
United States. The Commission shall consider such
imports only for purposes of determining threat of
material injury.
‘‘(B) 
NEGLIGIBILITY
FOR
CERTAIN
COUNTRIES
IN
COUNTERVAILING DUTY INVESTIGATIONS.—In the case of an
investigation under section 701, subparagraph (A) shall
be applied to imports of subject merchandise from develop-
ing countries by substituting ‘4 percent’ for ‘3 percent’
in subparagraph (A)(i) and by substituting ‘9 percent’ for
‘7 percent’ in subparagraph (A)(ii).
‘‘(C) COMPUTATION OF IMPORT VOLUMES.—In computing
import volumes for purposes of subparagraphs (A) and
(B), the Commission may make reasonable estimates on
the basis of available statistics.
‘‘(D) REGIONAL
INDUSTRIES.—In an investigation in
which the Commission makes a regional industry deter-
mination under paragraph (4)(C), the Commission’s exam-
ination under subparagraphs (A) and (B) shall be based
upon the volume of subject merchandise exported for sale
in the regional market in lieu of the volume of all subject
merchandise imported into the United States.’’.
H. R. 5110—65
(e) CUMULATION.—Section 771(7) (19 U.S.C. 1677(7)) is
amended—
(1) in subparagraph (F) by striking clause (iv), and
(2) by adding at the end the following:
‘‘(G) 
CUMULATION
FOR
DETERMINING
MATERIAL
INJURY.—
‘‘(i) IN GENERAL.—For purposes of clauses (i) and
(ii) of subparagraph (C), and subject to clause (ii),
the Commission shall cumulatively assess the volume
and effect of imports of the subject merchandise from
all countries with respect to which—
‘‘(I) petitions were filed under section 702(b)
or 732(b) on the same day,
‘‘(II) investigations were initiated under sec-
tion 702(a) or 732(a) on the same day, or
‘‘(III) petitions were filed under section 702(b)
or 732(b) and investigations were initiated under
section 702(a) or 732(a) on the same day,
if such imports compete with each other and with
domestic like products in the United States market.
‘‘(ii) EXCEPTIONS.—The Commission shall not
cumulatively assess the volume and effect of imports
under clause (i)—
‘‘(I) with respect to which the administering
authority has made a preliminary negative deter-
mination, unless the administering authority sub-
sequently made a final affirmative determination
with respect to those imports before the Commis-
sion’s final determination is made;
‘‘(II) from any country with respect to which
the investigation has been terminated;
‘‘(III) from any country designated as a bene-
ficiary country under the Caribbean Basin Eco-
nomic Recovery Act (19 U.S.C. 2701 et seq.) for
purposes of making a determination with respect
to that country, except that the volume and effect
of imports of the subject merchandise from such
country may be cumulatively assessed with
imports of the subject merchandise from any other
country designated as such a beneficiary country
to the extent permitted by clause (i); or
‘‘(IV) from any country that is a party to an
agreement with the United States establishing a
free trade area, which entered into force and effect
before January 1, 1987, unless the Commission
determines that a domestic industry is materially
injured or threatened with material injury by rea-
son of imports from that country.
‘‘(iii) RECORDS IN FINAL INVESTIGATIONS.—In each
final determination in which it cumulatively assesses
the volume and effect of imports under clause (i), the
Commission shall make its determinations based on
the record compiled in the first investigation in which
it makes a final determination, except that when the
administering authority issues its final determination
in 
a 
subsequently 
completed 
investigation, 
the
Commission shall permit the parties in the subsequent
H. R. 5110—66
investigation to submit comments concerning the
significance 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.
‘‘(iv) REGIONAL INDUSTRY DETERMINATIONS.—In an
investigation which involves a regional industry, and
in which the Commission decides that the volume and
effect of imports should be cumulatively assessed under
this subparagraph, such assessment shall be based
upon the volume and effect of imports into the region
or regions determined by the Commission. The provi-
sions of clause (iii) shall apply to such investigations.
‘‘(H) CUMULATION FOR DETERMINING THREAT OF MATE-
RIAL
INJURY.—To the extent practicable and subject to
subparagraph (G)(ii), for purposes of clause (i)(III) and
(IV) of subparagraph (F), the Commission may cumula-
tively assess the volume and price effects of imports of
the subject merchandise from all countries with respect
to which—
‘‘(i) petitions were filed under section 702(b) or
732(b) on the same day,
‘‘(ii) investigations were initiated under section
702(a) or 732(a) on the same day, or
‘‘(iii) petitions were filed under section 702(b) or
732(b) and investigations were initiated under section
702(a) or 732(a) on the same day,
if such imports compete with each other and with domestic
like products in the United States market.’’.
(f) CONSIDERATION
OF POST-PETITION INFORMATION.—Section
771(7) (19 U.S.C. 1677(7)), is amended by adding at the end the
following:
‘‘(I) CONSIDERATION OF POST-PETITION INFORMATION.—
The Commission shall consider whether any change in
the volume, price effects, or impact of imports of the subject
merchandise since the filing of the petition in an investiga-
tion under subtitle A or B is related to the pendency
of the investigation and, if so, the Commission may reduce
the weight accorded to the data for the period after the
filing of the petition in making its determination of material
injury, threat of material injury, or material retardation
of the establishment of an industry in the United States.’’.
(g) INTERESTED PARTY.—Section 771(9) (19 U.S.C. 1677(9)) is
amended—
(1) in subparagraph (A), by inserting ‘‘producers, exporters,
or’’ before ‘‘importers’’, and
(2) in subparagraph (B), inserting ‘‘or from which such
merchandise is exported’’ after ‘‘manufactured’’.
(h) ORDINARY COURSE OF TRADE.—Section 771(15) (19 U.S.C.
1677(15)) is amended—
(1) by striking ‘‘merchandise which is the subject of an
investigation’’ and inserting ‘‘subject merchandise’’; and
(2) by adding at the end the following: ‘‘The administering
authority shall consider the following sales and transactions,
among others, to be outside the ordinary course of trade:
‘‘(A) Sales disregarded under section 773(b)(1).
‘‘(B) Transactions disregarded under section 773(f)(2).’’.
H. R. 5110—67
(i) OTHER DEFINITIONS.—
(1) IN GENERAL.—Section 771 (19 U.S.C. 1677), as amended
by subsection (d), is amended by adding at the end the
following:
‘‘(25) SUBJECT MERCHANDISE.—The term ‘subject merchan-
dise’ means the class or kind of merchandise that is within
the scope of an investigation, a review, a suspension agreement,
an order under this title or section 303, or a finding under
the Antidumping Act, 1921.
‘‘(26) SECTION 303.—The terms ‘section 303’ and ‘303’ mean
section 303 of this Act as in effect on the day before the
effective date of title II of the Uruguay Round Agreements
Act.
‘‘(27) SUSPENSION
AGREEMENT.—The term ‘suspension
agreement’ means an agreement described in section 704(b),
704(c), 734(b), 734(c), or 734(l).
‘‘(28) EXPORTER OR PRODUCER.—The term ‘exporter or pro-
ducer’ means the exporter of the subject merchandise, the pro-
ducer of the subject merchandise, or both where appropriate.
For purposes of section 773, the term ‘exporter or producer’
includes both the exporter of the subject merchandise and the
producer of the same subject merchandise to the extent nec-
essary to accurately calculate the total amount incurred and
realized for costs, expenses, and profits in connection with
production and sale of that merchandise.
‘‘(29) WTO 
AGREEMENT.—The term ‘WTO Agreement’
means the Agreement defined in section 2(9) of the Uruguay
Round Agreements Act.
‘‘(30) WTO MEMBER
AND
WTO
MEMBER
COUNTRY.—The
terms ‘WTO member’ and ‘WTO member country’ mean a state,
or separate customs territory (within the meaning of Article
XII of the WTO Agreement), with respect to which the United
States applies the WTO agreement.
‘‘(31) GATT 1994.—The term ‘GATT 1994’ means the Gen-
eral Agreement on Tariffs and Trade annexed to the WTO
Agreement.
‘‘(32) TRADE REPRESENTATIVE.—The term ‘Trade Represent-
ative’ means the United States Trade Representative.
‘‘(33) AFFILIATED
PERSONS.—The following persons shall
be considered to be ‘affiliated’ or ‘affiliated persons’:
‘‘(A) Members of a family, including brothers and sis-
ters (whether by the whole or half blood), spouse, ancestors,
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 indirectly owning, control-
ling, or holding with power to vote, 5 percent or more
of the outstanding voting stock or shares of any organiza-
tion and such organization.
‘‘(F) Two or more persons directly or indirectly control-
ling, controlled by, or under common control with, any
person.
‘‘(G) Any person who controls any other person and
such other person.
H. R. 5110—68
For purposes of this paragraph, a person shall be considered
to control another person if the person is legally or operationally
in a position to exercise restraint or direction over the other
person.
‘‘(34) DUMPED; DUMPING.—The terms ‘dumped’ and ‘dump-
ing’ refer to the sale or likely sale of goods at less than fair
value.’’.
(2) EXPORTER.—Paragraph (13) of section 771 (19 U.S.C.
1677(13)) is repealed.
SEC. 223. EXPORT PRICE AND CONSTRUCTED EXPORT PRICE.
Section 772 (19 U.S.C. 1677a) is amended to read as follows:
‘‘SEC. 772. EXPORT PRICE AND CONSTRUCTED EXPORT PRICE.
‘‘(a) EXPORT PRICE.—The term ‘export price’ means the price
at which the subject merchandise is first sold (or agreed to be
sold) before the date of importation by the producer or exporter
of the subject merchandise outside of the United States to an
unaffiliated purchaser in the United States or to an unaffiliated
purchaser for exportation to the United States, as adjusted under
subsection (c).
‘‘(b) CONSTRUCTED
EXPORT
PRICE.—The term ‘constructed
export price’ means the price at which the subject merchandise
is first sold (or agreed to be sold) in the United States before
or after the date of importation by or for the account of the producer
or exporter of such merchandise or by a seller affiliated with the
producer or exporter, to a purchaser not affiliated with the producer
or exporter, as adjusted under subsections (c) and (d).
‘‘(c) ADJUSTMENTS
FOR
EXPORT
PRICE
AND
CONSTRUCTED
EXPORT PRICE.—The price used to establish export price and con-
structed export price shall be—
‘‘(1) increased by—
‘‘(A) when not included in such price, the cost of all
containers and coverings and all other costs, charges, and
expenses incident to placing the subject merchandise in
condition packed ready for shipment to the United States,
‘‘(B) 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 merchandise to the United States, and
‘‘(C) the amount of any countervailing duty imposed
on the subject merchandise under subtitle A to offset an
export subsidy, and
‘‘(2) reduced by—
‘‘(A) except as provided in paragraph (1)(C), the
amount, if any, included in such price, attributable to any
additional costs, charges, or expenses, and United States
import duties, which are incident to bringing the subject
merchandise from the original place of shipment in the
exporting country to the place of delivery in the United
States, and
‘‘(B) the amount, if included in such price, of any
export tax, duty, or other charge imposed by the exporting
country on the exportation of the subject merchandise to
the United States, other than an export tax, duty, or other
charge described in section 771(6)(C).
H. R. 5110—69
‘‘(d) ADDITIONAL
ADJUSTMENTS
TO
CONSTRUCTED
EXPORT
PRICE.—For purposes of this section, the price used to establish
constructed export price shall also be reduced by—
‘‘(1) the amount of any of the following expenses generally
incurred by or for the account of the producer or exporter,
or the affiliated seller in the United States, in selling the
subject merchandise (or subject merchandise to which value
has been added)—
‘‘(A) commissions for selling the subject merchandise
in the United States;
‘‘(B) expenses that result from, and bear a direct rela-
tionship to, the sale, such as credit expenses, guarantees
and warranties;
‘‘(C) any selling expenses that the seller pays on behalf
of the purchaser; and
‘‘(D) any selling expenses not deducted under subpara-
graph (A), (B), or (C);
‘‘(2) the cost of any further manufacture or assembly
(including additional material and labor), except in cir-
cumstances described in subsection (e); and
‘‘(3) the profit allocated to the expenses described in para-
graphs (1) and (2).
‘‘(e) SPECIAL RULE
FOR MERCHANDISE WITH VALUE ADDED
AFTER IMPORTATION.—Where the subject merchandise is imported
by a person affiliated with the exporter or producer, and the value
added in the United States by the affiliated person is likely to
exceed substantially the value of the subject merchandise, the
administering authority shall determine the constructed export
price for such merchandise by using one of the following prices
if there is a sufficient quantity of sales to provide a reasonable
basis for comparison and the administering authority determines
that the use of such sales is appropriate:
‘‘(1) The price of identical subject merchandise sold by
the exporter or producer to an unaffiliated person.
‘‘(2) The price of other subject merchandise sold by the
exporter or producer to an unaffiliated person.
If there is not a sufficient quantity of sales to provide a reasonable
basis for comparison under paragraph (1) or (2), or the administer-
ing authority determines that neither of the prices described in
such paragraphs is appropriate, then the constructed export price
may be determined on any other reasonable basis.
‘‘(f) SPECIAL RULE FOR DETERMINING PROFIT.—
‘‘(1) IN GENERAL.—For purposes of subsection (d)(3), profit
shall be an amount determined by multiplying the total actual
profit by the applicable percentage.
‘‘(2) DEFINITIONS.—For purposes of this subsection:
‘‘(A) APPLICABLE
PERCENTAGE.—The term ‘applicable
percentage’ means the percentage determined by dividing
the total United States expenses by the total expenses.
‘‘(B) TOTAL UNITED STATES EXPENSES.—The term ‘total
United States expenses’ means the total expenses described
in subsection (d) (1) and (2).
‘‘(C) TOTAL
EXPENSES.—The term ‘total expenses’
means all expenses in the first of the following categories
which applies and which are incurred by or on behalf
of the foreign producer and foreign exporter of the subject
merchandise and by or on behalf of the United States
H. R. 5110—70
seller affiliated with the producer or exporter with respect
to the production and sale of such merchandise:
‘‘(i) The expenses incurred with respect to the sub-
ject merchandise sold in the United States and the
foreign like product sold in the exporting country if
such expenses were requested by the administering
authority for the purpose of establishing normal value
and constructed export price.
‘‘(ii) The expenses incurred with respect to the
narrowest category of merchandise sold in the United
States and the exporting country which includes the
subject merchandise.
‘‘(iii) The expenses incurred with respect to the
narrowest category of merchandise sold in all countries
which includes the subject merchandise.
‘‘(D) TOTAL
ACTUAL
PROFIT.—The term ‘total actual
profit’ means the total profit earned by the foreign pro-
ducer, exporter, and affiliated parties described in subpara-
graph (C) with respect to the sale of the same merchandise
for which total expenses are determined under such
subparagraph.’’.
SEC. 224. NORMAL VALUE.
Section 773 (19 U.S.C. 1677b) is amended to read as follows:
‘‘SEC. 773. NORMAL VALUE.
‘‘(a) DETERMINATION.—In determining under this title whether
subject merchandise is being, or is likely to be, sold at less than
fair value, a fair comparison shall be made between the export
price or constructed export price and normal value. In order to
achieve a fair comparison with the export price or constructed
export price, normal value shall be determined as follows:
‘‘(1) DETERMINATION OF NORMAL VALUE.—
‘‘(A) IN GENERAL.—The normal value of the subject
merchandise shall be the price described in subparagraph
(B), at a time reasonably corresponding to the time of
the sale used to determine the export price or constructed
export price under section 772(a) or (b).
‘‘(B) PRICE.—The price referred to in subparagraph
(A) is—
‘‘(i) the price at which the foreign like product
is first sold (or, in the absence of a sale, offered for
sale) for consumption in the exporting country, in the
usual commercial quantities and in the ordinary course
of trade and, to the extent practicable, at the same
level of trade as the export price or constructed export
price, or
‘‘(ii) in a case to which subparagraph (C) applies,
the price at which the foreign like product is so sold
(or offered for sale) for consumption in a country other
than the exporting country or the United States, if—
‘‘(I) such price is representative,
‘‘(II) the aggregate quantity (or, if quantity
is not appropriate, value) of the foreign like prod-
uct sold by the exporter or producer in such other
country is 5 percent or more of the aggregate quan-
tity (or value) of the subject merchandise sold in
H. R. 5110—71
the United States or for export to the United
States, and
‘‘(III) the administering authority does not
determine that the particular market situation in
such other country prevents a proper comparison
with the export price or constructed export price.
‘‘(C) 
THIRD
COUNTRY
SALES.—This 
subparagraph
applies when—
‘‘(i) the foreign like product is not sold (or offered
for sale) for consumption in the exporting country as
described in subparagraph (B)(i),
‘‘(ii) the administering authority determines that
the aggregate quantity (or, if quantity is not appro-
priate, value) of the foreign like product sold in the
exporting country is insufficient to permit a proper
comparison with the sales of the subject merchandise
to the United States, or
‘‘(iii) the particular market situation in the export-
ing country does not permit a proper comparison with
the export price or constructed export price.
For purposes of clause (ii), the aggregate quantity (or value)
of the foreign like product sold in the exporting country
shall normally be considered to be insufficient if such quan-
tity (or value) is less than 5 percent of the aggregate
quantity (or value) of sales of the subject merchandise
to the United States.
‘‘(2) FICTITIOUS MARKETS.—No pretended sale or offer for
sale, and no sale or offer for sale intended to establish a
fictitious market, shall be taken into account in determining
normal value. The occurrence of different movements in the
prices at which different forms of the foreign like product
are sold (or, in the absence of sales, offered for sale) in the
exporting country after the issuance of an antidumping duty
order may be considered by the administering authority as
evidence of the establishment of a fictitious market for the
foreign like product if the movement in such prices appears
to reduce the amount by which the normal value exceeds the
export price (or the constructed export price) of the subject
merchandise.
‘‘(3) EXPORTATION
FROM
AN
INTERMEDIATE
COUNTRY.—
Where the subject merchandise is exported to the United States
from an intermediate country, normal value shall be determined
in the intermediate country, except that normal value may
be determined in the country of origin of the subject merchan-
dise if—
‘‘(A) the producer knew at the time of the sale that
the subject merchandise was destined for exportation;
‘‘(B) the subject merchandise is merely transshipped
through the intermediate country;
‘‘(C) sales of the foreign like product in the intermediate
country do not satisfy the conditions of paragraph (1)(C);
or
‘‘(D) the foreign like product is not produced in the
intermediate country.
‘‘(4) USE OF CONSTRUCTED VALUE.—If the administering
authority determines that the normal value of the subject mer-
chandise cannot be determined under paragraph (1)(B)(i), then,
H. R. 5110—72
notwithstanding paragraph (1)(B)(ii), the normal value of the
subject merchandise may be the constructed value of that mer-
chandise, as determined under subsection (e).
‘‘(5) INDIRECT SALES OR OFFERS FOR SALE.—If the foreign
like product is sold or, in the absence of sales, offered for
sale through an affiliated party, the prices at which the foreign
like product is sold (or offered for sale) by such affiliated party
may be used in determining normal value.
‘‘(6) ADJUSTMENTS.—The price described in paragraph
(1)(B) shall be—
‘‘(A) increased by the cost of all containers and cover-
ings and all other costs, charges, and expenses incident
to placing the subject merchandise in condition packed
ready for shipment to the United States;
‘‘(B) reduced by—
‘‘(i) when included in the price described in para-
graph (1)(B), the cost of all containers and coverings
and all other costs, charges, and expenses incident
to placing the foreign like product in condition packed
ready for shipment to the place of delivery to the
purchaser,
‘‘(ii) the amount, if any, included in the price
described in paragraph (1)(B), attributable to any addi-
tional costs, charges, and expenses incident to bringing
the foreign like product from the original place of ship-
ment to the place of delivery to the purchaser, and
‘‘(iii) the amount of any taxes imposed directly
upon the foreign like product or components thereof
which have been rebated, or which have not been col-
lected, on the subject merchandise, but only to the
extent that such taxes are added to or included in
the price of the foreign like product, and
‘‘(C) increased or decreased by the amount of any dif-
ference (or lack thereof) between the export price or con-
structed export price and the price described in paragraph
(1)(B) (other than a difference for which allowance is other-
wise provided under this section) that is established to
the satisfaction of the administering authority to be wholly
or partly due to—
‘‘(i) the fact that the quantities in which the subject
merchandise is sold or agreed to be sold to the United
States are greater than or less than the quantities
in which the foreign like product is sold, agreed to
be sold, or offered for sale,
‘‘(ii) the fact that merchandise described in
subparagraph (B) or (C) of section 771(16) is used
in determining normal value, or
‘‘(iii) other differences in the circumstances of sale.
‘‘(7) ADDITIONAL ADJUSTMENTS.—
‘‘(A) LEVEL OF TRADE.—The price described in para-
graph (1)(B) shall also be increased or decreased to make
due allowance for any difference (or lack thereof) between
the export price or constructed 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 or constructed
H. R. 5110—73
export price and normal value, if the difference in level
of trade—
‘‘(i) involves the performance of different selling
activities; and
‘‘(ii) is demonstrated to affect price comparability,
based on a pattern of consistent price differences
between sales at different levels of trade in the country
in which normal value is determined.
In a case described in the preceding sentence, the amount
of the adjustment shall be based on the price differences
between the two levels of trade in the country in which
normal value is determined.
‘‘(B) CONSTRUCTED EXPORT PRICE OFFSET.—When nor-
mal value is established at a level of trade which con-
stitutes a more advanced stage of distribution than the
level of trade of the constructed export price, but the data
available do not provide an appropriate basis to determine
under subparagraph (A)(ii) a level of trade adjustment,
normal value shall be reduced by the amount of indirect
selling expenses incurred in the country in which normal
value is determined on sales of the foreign like product
but not more than the amount of such expenses for which
a deduction is made under section 772(d)(1)(D).
‘‘(8) ADJUSTMENTS TO CONSTRUCTED VALUE.—Constructed
value as determined under subsection (e), may be adjusted,
as appropriate, pursuant to this subsection.
‘‘(b) SALES AT LESS THAN COST OF PRODUCTION.—
‘‘(1) DETERMINATION; SALES DISREGARDED.—Whenever the
administering authority has reasonable grounds to believe or
suspect that sales of the foreign like product under consider-
ation for the determination of normal value have been made
at prices which represent less than the cost of production
of that product, the administering authority shall determine
whether, in fact, such sales were made at less than the cost
of production. If the administering authority determines that
sales made at less than the cost of production—
‘‘(A) have been made within an extended period of
time in substantial quantities, and
‘‘(B) were not at prices which permit recovery of all
costs within a reasonable period of time,
such sales may be disregarded in the determination of normal
value. Whenever such sales are disregarded, normal value shall
be based on the remaining sales of the foreign like product
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 merchandise.
‘‘(2) DEFINITIONS AND SPECIAL RULES.—For purposes of this
subsection—
‘‘(A) REASONABLE GROUNDS TO BELIEVE OR SUSPECT.—
There are reasonable grounds to believe or suspect that
sales of the foreign like product were made at prices that
are less than the cost of production of the product, if—
‘‘(i) in an investigation initiated under section 732
or a review conducted under section 751, an interested
party described in subparagraph (C), (D), (E), (F), or
(G) of section 771(9) provides information, based upon
observed prices or constructed prices or costs, that
H. R. 5110—74
sales of the foreign like product under consideration
for the determination of normal value have been made
at prices which represent less than the cost of produc-
tion of the product; or
‘‘(ii) in a review conducted under section 751
involving a specific exporter, the administering author-
ity disregarded some or all of the exporter’s sales
pursuant to paragraph (1) in the investigation or if
a review has been completed, in the most recently
completed review.
‘‘(B) EXTENDED PERIOD OF TIME.—The term ‘extended
period of time’ means a period that is normally 1 year,
but not less than 6 months.
‘‘(C) SUBSTANTIAL QUANTITIES.—Sales made at prices
below the cost of production have been made in substantial
quantities if—
‘‘(i) the volume of such sales represents 20 percent
or more of the volume of sales under consideration
for the determination of normal value, or
‘‘(ii) the weighted average per unit price of the
sales under consideration for the determination of nor-
mal value is less than the weighted average per unit
cost of production for such sales.
‘‘(D) RECOVERY OF COSTS.—If prices which are below
the per unit cost of production at the time of sale are
above the weighted average per unit cost of production
for the period of investigation or review, such prices shall
be considered to provide for recovery of costs within a
reasonable period of time.
‘‘(3) CALCULATION OF COST OF PRODUCTION.—For purposes
of this subtitle, 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 foreign
like product, during a period which would ordinarily permit
the production of that foreign like product in the ordinary
course of business;
‘‘(B) an amount for selling, general, and administrative
expenses based on actual data pertaining to production
and sales of the foreign like product by the exporter in
question; and
‘‘(C) the cost of all containers and coverings of whatever
nature, and all other expenses incidental to placing the
foreign like product in condition packed ready for shipment.
For purposes of subparagraph (A), if the normal value is based
on the price of the foreign like product sold for consumption
in a country other than the exporting country, the cost of
materials shall be determined without regard to any internal
tax in the exporting country imposed on such materials or
their disposition which are remitted or refunded upon
exportation.
‘‘(c) NONMARKET ECONOMY COUNTRIES.—
‘‘(1) IN GENERAL.—If—
‘‘(A) the subject merchandise is exported from a
nonmarket economy country, and
H. R. 5110—75
‘‘(B) the administering authority finds that available
information does not permit the normal value of the subject
merchandise to be determined under subsection (a),
the administering authority shall determine the normal value
of the subject merchandise on the basis of the value of the
factors of production utilized in producing the merchandise
and to which shall be added an amount for general expenses
and profit plus the cost of containers, coverings, and other
expenses. Except as provided in paragraph (2), the valuation
of the factors of production shall be based on the best available
information regarding the values of such factors in a market
economy country or countries considered to be appropriate by
the administering authority.
‘‘(2) EXCEPTION.—If the administering authority finds that
the available information is inadequate for purposes of deter-
mining the normal value of subject merchandise under para-
graph (1), the administering authority shall determine the
normal value on the basis of the price at which merchandise
that is—
‘‘(A) comparable to the subject merchandise, and
‘‘(B) produced in one or more market economy countries
that are at a level of economic development comparable
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 merchandise
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 PRODUCTION.—The admin-
istering authority, in valuing factors of production under para-
graph (1), shall utilize, to the extent possible, the prices or
costs of factors of production in one or more market economy
countries that are—
‘‘(A) at a level of economic development comparable
to that of the nonmarket economy country, and
‘‘(B) significant producers of comparable merchandise.
‘‘(d) SPECIAL RULE
FOR CERTAIN MULTINATIONAL CORPORA-
TIONS.—Whenever, in the course of an investigation under this
title, the administering authority determines that—
‘‘(1) subject merchandise exported to the United States
is being produced in facilities which are owned or controlled,
directly or indirectly, by a person, firm, or corporation which
also owns or controls, directly or indirectly, other facilities
for the production of the foreign like product which are located
in another country or countries,
‘‘(2) subsection (a)(1)(C) applies, and
‘‘(3) the normal value of the foreign like product produced
in one or more of the facilities outside the exporting country
is higher than the normal value of the foreign like product
produced in the facilities located in the exporting country,
it shall determine the normal value of the subject merchandise
by reference to the normal value at which the foreign like product
is sold in substantial quantities from one or more facilities outside
H. R. 5110—76
the exporting country. The administering authority, in making any
determination under this paragraph, shall make adjustments for
the difference between the cost of production (including taxes, labor,
materials, and overhead) of the foreign like product produced in
facilities outside the exporting country and costs of production
of the foreign like product produced in facilities in the exporting
country, if such differences are demonstrated to its satisfaction.
For purposes of this subsection, in determining the normal value
of the foreign like product produced in a country outside of the
exporting country, the administering authority shall determine its
price at the time of exportation from the exporting country and
shall make any adjustments required by subsection (a) for the
cost of all containers and coverings and all other costs, charges,
and expenses incident to placing the merchandise in condition
packed ready for shipment to the United States by reference to
such costs in the exporting country.
‘‘(e) CONSTRUCTED VALUE.—For purposes of this title, the con-
structed value of imported merchandise shall be an amount equal
to the sum of—
‘‘(1) the cost of materials and fabrication or other processing
of any kind employed in producing the merchandise, during
a period which would ordinarily permit the production of the
merchandise in the ordinary course of business;
‘‘(2)(A) the actual amounts incurred and realized by the
specific exporter or producer being examined in the investiga-
tion or review for selling, general, and administrative expenses,
and for profits, in connection with the production and sale
of a foreign like product, in the ordinary course of trade, for
consumption in the foreign country, or
‘‘(B) if actual data are not available with respect to the
amounts described in subparagraph (A), then—
‘‘(i) the actual amounts incurred and realized by the
specific exporter or producer being examined in the inves-
tigation or review for selling, general, and administrative
expenses, and for profits, in connection with the production
and sale, for consumption in the foreign country, of mer-
chandise that is in the same general category of products
as the subject merchandise,
‘‘(ii) the weighted average of the actual amounts
incurred and realized by exporters or producers that are
subject to the investigation or review (other than the
exporter or producer described in clause (i)) for selling,
general, and administrative expenses, and for profits, in
connection with the production and sale of a foreign like
product, in the ordinary course of trade, for consumption
in the foreign country, or
‘‘(iii) the amounts incurred and realized for selling,
general, and administrative 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 exporters or producers (other than the exporter
or producer described in clause (i)) in connection with the
sale, for consumption in the foreign country, of merchandise
that is in the same general category of products as the
subject merchandise; and
‘‘(3) the cost of all containers and coverings of whatever
nature, and all other expenses incidental to placing the subject
H. R. 5110—77
merchandise in condition packed ready for shipment to the
United States.
For purposes of paragraph (1), the cost of materials shall be deter-
mined without regard 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 merchandise produced
from such materials.
‘‘(f) SPECIAL RULES FOR CALCULATION OF COST OF PRODUCTION
AND FOR CALCULATION OF CONSTRUCTED VALUE.—For purposes of
subsections (b) and (e).—
‘‘(1) COSTS.—
‘‘(A) IN GENERAL.—Costs shall normally be calculated
based on the records of the exporter or producer of the
merchandise, if such records are kept in accordance with
the generally accepted accounting principles of the export-
ing country (or the producing country, where appropriate)
and reasonably reflect the costs associated with the produc-
tion and sale of the merchandise. The administering
authority shall consider all available evidence on the proper
allocation of costs, including that which is made available
by the exporter or producer on a timely basis, if such
allocations have been historically used by the exporter or
producer, 
in 
particular 
for 
establishing 
appropriate
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 cur-
rent or future production, or both.
‘‘(C) STARTUP COSTS.—
‘‘(i) IN GENERAL.—Costs shall be adjusted appro-
priately for circumstances in which costs incurred dur-
ing the time period covered by the investigation or
review are affected by startup operations.
‘‘(ii) STARTUP OPERATIONS.—Adjustments shall be
made for startup operations only where—
‘‘(I) a producer is using new production facili-
ties or producing a new product that requires
substantial additional investment, and
‘‘(II) production levels are limited by technical
factors associated with the initial phase of commer-
cial production.
For purposes of subclause (II), the initial phase of
commercial production ends at the end of the startup
period. In determining whether commercial production
levels have been achieved, the administering authority
shall consider factors unrelated to startup operations
that might affect the volume of production processed,
such as demand, seasonality, or business cycles.
‘‘(iii) ADJUSTMENT FOR STARTUP OPERATIONS.—The
adjustment for startup operations shall be made by
substituting the unit production costs incurred with
respect to the merchandise at the end of the startup
period for the unit production costs incurred during
the startup period. If the startup period extends beyond
the period of the investigation or review under this
title, the administering authority shall use the most
recent cost of production data that it reasonably can
H. R. 5110—78
obtain, analyze, and verify without delaying the timely
completion of the investigation or review. For purposes
of this subparagraph, the startup period ends at the
point at which the level of commercial production that
is characteristic of the merchandise, producer, or indus-
try concerned is achieved.
‘‘(2) TRANSACTIONS DISREGARDED.—A transaction directly
or indirectly between affiliated persons may be disregarded
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 reflected in sales of merchandise under
consideration in the market under consideration. If a trans-
action is disregarded under the preceding sentence and no
other transactions are available for consideration, the deter-
mination of the amount shall be based on the information
available as to what the amount would have been if the trans-
action had occurred between persons who are not affiliated.
‘‘(3) MAJOR INPUT RULE.—If, in the case of a transaction
between affiliated persons involving the production by one of
such persons of a major input to the merchandise, the admin-
istering authority has reasonable grounds to believe or suspect
that an amount represented as the value of such input is
less than the cost of production of such input, then the admin-
istering 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 determined for such input under paragraph (2).’’.
SEC. 225. CURRENCY CONVERSION.
(a) IN GENERAL.—Subtitle D of title VII (19 U.S.C. 1677 et
seq.) is amended by inserting after section 773 the following new
section:
‘‘SEC. 773A. CURRENCY CONVERSION.
‘‘(a) IN GENERAL.—In an antidumping 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 merchandise, except that, if it is
established that a currency transaction on forward markets is
directly linked to an export sale under consideration, the exchange
rate specified with respect to such currency in the forward sale
agreement shall be used to convert the foreign currency. Fluctua-
tions in exchange rates shall be ignored.
‘‘(b) SUSTAINED MOVEMENT IN FOREIGN CURRENCY VALUE.—
In an investigation under subtitle B, if there is a sustained move-
ment in the value of the foreign currency relative to the United
States dollar, the administering authority shall allow exporters
at least 60 days to adjust their export prices to reflect such sus-
tained movement.’’.
(b) CONFORMING AMENDMENT.—The table of contents for title
VII is amended by inserting after the item relating to section
773 the following new item:
‘‘Sec. 773A. Currency conversion.’’.
SEC. 226. PROPRIETARY AND NONPROPRIETARY INFORMATION.
(a) PROPRIETARY STATUS MAINTAINED.—
(1) IN GENERAL.—Section 777(b)(1) (19 U.S.C. 1677f(b)(1))
is amended to read as follows:
H. R. 5110—79
‘‘(1) PROPRIETARY STATUS MAINTAINED.—
‘‘(A) IN GENERAL.—Except as provided in subsection
(a)(4)(A) and subsection (c), information submitted to the
administering authority or the Commission which is des-
ignated as proprietary by the person submitting the
information shall not be disclosed to any person without
the consent of the person submitting the information, 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 submitted or any review
under this title covering the same subject merchandise,
or
‘‘(ii) to an officer or employee of the United States
Customs Service who is directly involved in conducting
an investigation regarding fraud under this title.
‘‘(B) ADDITIONAL
REQUIREMENTS.—The administering
authority and the Commission shall require that informa-
tion for which proprietary treatment is requested be accom-
panied by—
‘‘(i) either—
‘‘(I) a non-proprietary summary in sufficient
detail to permit a reasonable understanding of the
substance of the information submitted in con-
fidence, or
‘‘(II) a statement that the information is not
susceptible to summary accompanied by a state-
ment of the reasons in support of the contention,
and
‘‘(ii) either—
‘‘(I) a statement which permits the administer-
ing authority or the Commission to release under
administrative protective order, in accordance with
subsection (c), the information submitted in con-
fidence, or
‘‘(II) a statement to the administering author-
ity or the Commission that the business propri-
etary information is of a type that should not
be 
released 
under 
administrative 
protective
order.’’.
(2) SECTION
751
REVIEWS.—Section 777(b) (19 U.S.C.
1677f(b)) is amended by adding at the end the following:
‘‘(3) SECTION 751 REVIEWS.—Notwithstanding the provisions
of paragraph (1), information submitted to the administering
authority or the Commission in connection with a review under
section 751(b) or 751(c) which is designated as proprietary
by the person submitting the information may, if the review
results in the revocation of an order or finding (or termination
of a suspended investigation) under section 751(d), be used
by the agency to which the information was originally submitted
in any investigation initiated within 2 years after the date
of the revocation or termination pursuant to a petition covering
the same subject merchandise.’’.
(b) 
UNWARRANTED
PROPRIETARY
DESIGNATION.—Section
777(b)(2) (19 U.S.C. 1677f(b)(2)) is amended by adding at the end
the following new sentence: ‘‘In a case in which the administering
H. R. 5110—80
authority or the Commission returns the information to the person
submitting it, the person may thereafter submit other material
concerning the subject matter of the returned information if the
submission is made within the time otherwise provided for submit-
ting such material.’’.
SEC. 227. OPPORTUNITY FOR COMMENT BY CONSUMERS AND INDUS-
TRIAL USERS.
Section 777 (19 U.S.C. 1677f) is amended by adding at the
end the following new subsection:
‘‘(h) OPPORTUNITY FOR COMMENT BY CONSUMERS AND INDUS-
TRIAL USERS.—The administering authority and the Commission
shall provide an opportunity for industrial users of the subject
merchandise and, if the merchandise is sold at the retail level,
for representative consumer organizations, to submit relevant
information to the administering authority concerning dumping
or a countervailable subsidy, and to the Commission concerning
material injury by reason of dumped or subsidized imports.’’.
SEC. 228. PUBLIC NOTICE AND EXPLANATION OF DETERMINATIONS.
Section 777 (19 U.S.C. 1677f), as amended by section 227,
is amended by adding at the end the following:
‘‘(i) PUBLICATION
OF
DETERMINATIONS; REQUIREMENTS
FOR
FINAL DETERMINATIONS.—
‘‘(1) IN GENERAL.—Whenever the administering authority
makes a determination under section 702 or 732 whether to
initiate an investigation, or the administering authority or the
Commission makes a preliminary determination under section
703 or 733, a final determination under section 705 or section
735, a preliminary or final determination in a review under
section 751, a determination to suspend an investigation under
this title, or a determination under section 753, the administer-
ing authority or the Commission, as the case may be, shall
publish the facts and conclusions supporting that determina-
tion, and shall publish notice of that determination in the
Federal Register.
‘‘(2) CONTENTS OF NOTICE OR DETERMINATION.—The notice
or determination published under paragraph (1) shall include,
to the extent applicable—
‘‘(A) in the case of a determination of the administering
authority—
‘‘(i) the names of the exporters or producers of
the subject merchandise or, when providing such
names is impracticable, the countries exporting the
subject merchandise to the United States,
‘‘(ii) a description of the subject merchandise that
is sufficient to identify the subject merchandise for
customs purposes,
‘‘(iii)(I) with respect to a determination in an inves-
tigation under subtitle A or section 753 or in a review
of a countervailing duty order, the amount of the
countervailable subsidy established and a full expla-
nation of the methodology used in establishing the
amount, and
‘‘(II) with respect to a determination in an inves-
tigation under subtitle B or in a review of an antidump-
ing duty order, the weighted average dumping margins
H. R. 5110—81
established and a full explanation of the methodology
used in establishing such margins, and
‘‘(iv) the primary reasons for the determination;
and
‘‘(B) in the case of a determination of the Commission—
‘‘(i) considerations relevant to the determination
of injury, and
‘‘(ii) the primary reasons for the determination.
‘‘(3) ADDITIONAL
REQUIREMENTS
FOR
FINAL
DETERMINA-
TIONS.—In addition to the requirements set forth in paragraph
(2)—
‘‘(A) the administering authority shall include in a
final determination described in paragraph (1) an expla-
nation of the basis for its determination that addresses
relevant arguments, made by interested parties who are
parties to the investigation or review (as the case may
be), concerning the establishment of dumping or a
countervailable subsidy, or the suspension of the investiga-
tion, with respect to which the determination is made;
and
‘‘(B) the Commission shall include in a final determina-
tion of injury an explanation of the basis for its determina-
tion that addresses relevant arguments that are made by
interested parties who are parties to the investigation or
review (as the case may be) concerning volume, price
effects, and impact on the industry of imports of the subject
merchandise.’’.
SEC. 229. SAMPLING 
AND 
AVERAGING; 
DETERMINATION 
OF
WEIGHTED AVERAGE DUMPING MARGIN.
(a) IN
GENERAL.—Section 777A (19 U.S.C. 1677f–1) is
amended to read as follows:
‘‘SEC. 777A. SAMPLING 
AND 
AVERAGING; 
DETERMINATION 
OF
WEIGHTED AVERAGE DUMPING MARGIN.
‘‘(a) IN GENERAL.—For purposes of determining the export price
(or constructed export price) under section 772 or the normal value
under section 773, and in carrying out reviews under section 751,
the administering authority may—
‘‘(1) use averaging and statistically valid samples, if there
is a significant volume of sales of the subject merchandise
or a significant number or types of products, and
‘‘(2) decline to take into account adjustments which are
insignificant in relation to the price or value of the merchandise.
‘‘(b) SELECTION
OF AVERAGES
AND SAMPLES.—The authority
to select averages and statistically valid samples shall rest exclu-
sively with the administering authority. The administering author-
ity shall, to the greatest extent possible, consult with the exporters
and producers regarding the method to be used to select exporters,
producers, or types of products under this section.
‘‘(c) DETERMINATION OF DUMPING MARGIN.—
‘‘(1) GENERAL
RULE.—In determining weighted average
dumping margins under section 733(d), 735(c), or 751(a), the
administering 
authority 
shall 
determine 
the 
individual
weighted average dumping margin for each known exporter
and producer of the subject merchandise.
‘‘(2) EXCEPTION.—If it is not practicable to make individual
weighted average dumping margin determinations under para-
H. R. 5110—82
graph (1) because of the large number of exporters or producers
involved in the investigation or review, the administering
authority may determine the weighted average dumping mar-
gins for a reasonable number of exporters or producers by
limiting its examination to—
‘‘(A) a sample of exporters, producers, or types of prod-
ucts that is statistically valid based on the information
available to the administering authority at the time of
selection, or
‘‘(B) exporters and producers accounting for the largest
volume of the subject merchandise from the exporting coun-
try that can be reasonably examined.
‘‘(d) DETERMINATION OF LESS THAN FAIR VALUE.—
‘‘(1) INVESTIGATIONS.—
‘‘(A) IN GENERAL.—In an investigation under subtitle
B, the administering authority shall determine whether
the subject merchandise is being sold in the United States
at less than fair value—
‘‘(i) by comparing the weighted average of the nor-
mal values to the weighted average of the export prices
(and constructed export prices) for comparable mer-
chandise, or
‘‘(ii) by comparing the normal values of individual
transactions to the export prices (or constructed export
prices) of individual transactions for comparable mer-
chandise.
‘‘(B) EXCEPTION.—The administering authority may
determine whether the subject merchandise is being sold
in the United States at less than fair value by comparing
the weighted average of the normal values to the export
prices (or constructed export prices) of individual trans-
actions for comparable merchandise, if—
‘‘(i) there is a pattern of export prices (or con-
structed export prices) for comparable merchandise
that differ significantly among purchasers, regions, or
periods of time, and
‘‘(ii) the administering authority explains why such
differences cannot be taken into account using a
method described in paragraph (1)(A)(i) or (ii).
‘‘(2) REVIEWS.—In a review under section 751, when
comparing export prices (or constructed export prices) of
individual transactions to the weighted average price of sales
of the foreign like product, the administering authority shall
limit its averaging of prices to a period not exceeding the
calendar month that corresponds most closely to the calendar
month of the individual export sale.’’.
(b) DUMPING MARGIN; WEIGHTED AVERAGE DUMPING MARGIN.—
Section 771 (19 U.S.C. 1677), as amended by section 222(i), is
amended by adding at the end the following new paragraph:
‘‘(35) DUMPING MARGIN; WEIGHTED AVERAGE DUMPING MAR-
GIN.—
‘‘(A) DUMPING MARGIN.—The term ‘dumping margin’
means the amount by which the normal value exceeds
the export price or constructed export price of the subject
merchandise.
‘‘(B) WEIGHTED AVERAGE DUMPING MARGIN.—The term
‘weighted average dumping margin’ is the percentage deter-
H. R. 5110—83
mined by dividing the aggregate dumping margins deter-
mined for a specific exporter or producer by the aggregate
export prices and constructed export prices of such exporter
or producer.
‘‘(C) MAGNITUDE OF THE MARGIN OF DUMPING.—The
magnitude of the margin of dumping used by the Commis-
sion shall be—
‘‘(i) in making a preliminary determination under
section 733(a) in an investigation (including any inves-
tigation in which the Commission cumulatively
assesses the volume and effect of imports under para-
graph (7)(G)(i)), the dumping margin or margins pub-
lished by the administering authority in its notice of
initiation of the investigation;
‘‘(ii) in making a final determination under section
735(b), the dumping margin or margins most recently
published by the administering authority prior to the
closing of the Commission’s administrative record;
‘‘(iii) in a review under section 751(b)(2), the most
recent dumping margin or margins determined by the
administering authority under section 752(c)(3), if any,
or under section 733(b) or 735(a); and
‘‘(iv) in a review under section 751(c), the dumping
margin or margins determined by the administering
authority under section 752(c)(3).’’.
SEC. 230. ANTICIRCUMVENTION.
(a) IN GENERAL.—Subsections (a) and (b) of section 781 (19
U.S.C. 1677j (a) and (b)) are amended to read as follows:
‘‘(a) MERCHANDISE COMPLETED OR ASSEMBLED IN THE UNITED
STATES.—
‘‘(1) IN GENERAL.—If—
‘‘(A) merchandise sold in the United States is of the
same class or kind as any other merchandise that is the
subject of—
‘‘(i) an antidumping duty order issued under sec-
tion 736,
‘‘(ii) a finding issued under the Antidumping Act,
1921, or
‘‘(iii) a countervailing duty order issued under sec-
tion 706 or section 303,
‘‘(B) such merchandise sold in the United States is
completed or assembled in the United States from parts
or components produced in the foreign country with respect
to which such order or finding applies,
‘‘(C) the process of assembly or completion in the
United States is minor or insignificant, and
‘‘(D) the value of the parts or components referred
to in subparagraph (B) is a significant portion of the total
value of the merchandise,
the administering authority, after taking into account any
advice provided by the Commission under subsection (e), may
include within the scope of such order or finding the imported
parts or components referred to in subparagraph (B) that are
used in the completion or assembly of the merchandise in
the United States at any time such order or finding is in
effect.
H. R. 5110—84
‘‘(2) DETERMINATION OF WHETHER PROCESS IS MINOR OR
INSIGNIFICANT.—In determining whether the process of assem-
bly or completion is minor or insignificant under paragraph
(1)(C), the administering authority shall take into account—
‘‘(A) the level of investment in the United States,
‘‘(B) the level of research and development in the
United States,
‘‘(C) the nature of the production process in the United
States,
‘‘(D) the extent of production facilities in the United
States, and
‘‘(E) whether the value of the processing performed
in the United States represents a small proportion of the
value of the merchandise sold in the United States.
‘‘(3) FACTORS
TO
CONSIDER.—In determining whether to
include parts or components in a countervailing or antidumping
duty order or finding under paragraph (1), the administering
authority shall take into account such factors as—
‘‘(A) the pattern of trade, including sourcing patterns,
‘‘(B) whether the manufacturer or exporter of the parts
or components is affiliated with the person who assembles
or completes the merchandise sold in the United States
from the parts or components produced in the foreign coun-
try with respect to which the order or finding described
in paragraph (1) applies, and
‘‘(C) whether imports into the United States of the
parts or components produced in such foreign country have
increased after the initiation of the investigation which
resulted in the issuance of such order or finding.
‘‘(b) MERCHANDISE COMPLETED OR ASSEMBLED IN OTHER FOR-
EIGN COUNTRIES.—
‘‘(1) IN GENERAL.—If—
‘‘(A) merchandise imported into the United States is
of the same class or kind as any merchandise produced
in a foreign country that is the subject of—
‘‘(i) an antidumping duty order issued under sec-
tion 736,
‘‘(ii) a finding issued under the Antidumping Act,
1921, or
‘‘(iii) a countervailing duty order issued under sec-
tion 706 or section 303,
‘‘(B) before importation into the United States, such
imported merchandise is completed or assembled in another
foreign country from merchandise which—
‘‘(i) is subject to such order or finding, or
‘‘(ii) is produced in the foreign country with respect
to which such order or finding applies,
‘‘(C) the process of assembly or completion in the for-
eign country referred to in subparagraph (B) is minor or
insignificant,
‘‘(D) the value of the merchandise produced in the
foreign country to which the antidumping duty order
applies is a significant portion of the total value of the
merchandise exported to the United States, and
‘‘(E) the administering authority determines that action
is appropriate under this paragraph to prevent evasion
of such order or finding,
H. R. 5110—85
the administering authority, after taking into account any
advice provided by the Commission under subsection (e), may
include such imported merchandise within the scope of such
order or finding at any time such order or finding is in effect.
‘‘(2) DETERMINATION OF WHETHER PROCESS IS MINOR OR
INSIGNIFICANT.—In determining whether the process of assem-
bly or completion is minor or insignificant under paragraph
(1)(C), the administering authority shall take into account—
‘‘(A) the level of investment in the foreign country,
‘‘(B) the level of research and development in the for-
eign country,
‘‘(C) the nature of the production process in the foreign
country,
‘‘(D) the extent of production facilities in the foreign
country, and
‘‘(E) whether the value of the processing performed
in the foreign country represents a small proportion of
the value of the merchandise imported into the United
States.
‘‘(3) FACTORS
TO
CONSIDER.—In determining whether to
include merchandise assembled or completed in a foreign coun-
try in a countervailing duty order or an antidumping duty
order or finding under paragraph (1), the administering author-
ity shall take into account such factors as—
‘‘(A) the pattern of trade, including sourcing patterns,
‘‘(B) whether the manufacturer or exporter of the mer-
chandise described in paragraph (1)(B) is affiliated with
the person who uses the merchandise described in para-
graph (1)(B) to assemble or complete in the foreign country
the merchandise that is subsequently imported into the
United States, and
‘‘(C) whether imports into the foreign country of the
merchandise described in paragraph (1)(B) have increased
after the initiation of the investigation which resulted in
the issuance of such order or finding.’’.
(b) TIME LIMITS FOR ADMINISTERING AUTHORITY DETERMINA-
TIONS.—Section 781 (19 U.S.C. 1677j) is amended by adding at
the end the following:
‘‘(f) TIME LIMITS FOR ADMINISTERING AUTHORITY DETERMINA-
TIONS.—The administering authority shall, to the maximum extent
practicable, make the determinations under this section within
300 days from the date of the initiation of a countervailing duty
or antidumping circumvention inquiry under this section.’’.
SEC. 231. EVIDENCE.
(a) 
CONDUCT
OF
INVESTIGATIONS
AND
ADMINISTRATIVE
REVIEWS.—Subtitle D of title VII (19 U.S.C. 1671) is amended
by adding at the end the following new section:
‘‘SEC. 782. CONDUCT 
OF 
INVESTIGATIONS 
AND 
ADMINISTRATIVE
REVIEWS.
‘‘(a) TREATMENT OF VOLUNTARY RESPONSES IN COUNTERVAILING
OR ANTIDUMPING DUTY INVESTIGATIONS
AND REVIEWS.—In any
investigation under subtitle A or B or a review under section
751(a) in which the administering authority has, under section
777A(c)(2) or section 777A(e)(2)(A) (whichever is applicable), limited
the number of exporters or producers examined, or determined
a single country-wide rate, the administering authority shall estab-
H. R. 5110—86
lish an individual countervailable subsidy rate or an individual
weighted average dumping margin for any exporter or producer
not initially selected for individual examination under such sections
who submits to the administering authority the information
requested from exporters or producers selected for examination,
if—
‘‘(1) such information is so submitted by the date specified—
‘‘(A) for exporters and producers that were initially
selected for examination, or
‘‘(B) for the foreign government, in a countervailing
duty case where the administering authority has deter-
mined a single country-wide rate; and
‘‘(2) the number of exporters or producers who have submit-
ted such information is not so large that individual examination
of such exporters or producers would be unduly burdensome
and inhibit the timely completion of the investigation.
‘‘(b) CERTIFICATION OF SUBMISSIONS.—Any person providing fac-
tual information to the administering authority or the Commission
in connection with a proceeding under this title on behalf of the
petitioner or any other interested party shall certify that such
information is accurate and complete to the best of that person’s
knowledge.
‘‘(c) DIFFICULTIES IN MEETING REQUIREMENTS.—
‘‘(1) NOTIFICATION BY INTERESTED PARTY.—If an interested
party, promptly after receiving a request from the administer-
ing authority or the Commission for information, notifies the
administering authority or the Commission (as the case may
be) that such party is unable to submit the information
requested in the requested form and manner, together with
a full explanation and suggested alternative forms in which
such party is able to submit the information, the administering
authority or the Commission (as the case may be) shall consider
the ability of the interested party to submit the information
in the requested form and manner and may modify such
requirements to the extent necessary to avoid imposing an
unreasonable burden on that party.
‘‘(2) ASSISTANCE TO INTERESTED PARTIES.—The administer-
ing authority and the Commission shall take into account any
difficulties experienced by interested parties, particularly small
companies, in supplying information requested by the admin-
istering authority or the Commission in connection with inves-
tigations and reviews under this title, and shall provide to
such interested parties any assistance that is practicable in
supplying such information.
‘‘(d) DEFICIENT SUBMISSIONS.—If the administering authority
or the Commission determines that a response to a request for
information 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 shall, to the extent practicable,
provide that person with an opportunity to remedy or explain
the deficiency in light of the time limits established for the comple-
tion of investigations or reviews under this title. If that person
submits further information in response to such deficiency and
either—
H. R. 5110—87
‘‘(1) the administering authority or the Commission (as
the case may be) finds that such response is not satisfactory,
or
‘‘(2) such response is not submitted within the applicable
time limits,
then the administering authority or the Commission (as the case
may be) may, subject to subsection (e), disregard all or part of
the original and subsequent responses.
‘‘(e) USE OF CERTAIN INFORMATION.—In reaching a determina-
tion under section 703, 705, 733, 735, 751, or 753 the administering
authority and the Commission shall not decline to consider informa-
tion that is submitted by an interested party and is necessary
to the determination but does not meet all the applicable require-
ments established by the administering authority or the Commis-
sion, if—
‘‘(1) the information is submitted by the deadline estab-
lished for its submission,
‘‘(2) the information can be verified,
‘‘(3) the information is not so incomplete that it cannot
serve as a reliable basis for reaching the applicable determina-
tion,
‘‘(4) the interested party has demonstrated that it acted
to the best of its ability in providing the information and
meeting the requirements established by the administering
authority or the Commission with respect to the information,
and
‘‘(5) the information can be used without undue difficulties.
‘‘(f) NONACCEPTANCE
OF SUBMISSIONS.—If the administering
authority or the Commission declines to accept into the record
any information submitted in an investigation or review under
this title, it shall, to the extent practicable, provide to the person
submitting the information a written explanation of the reasons
for not accepting the information.
‘‘(g) PUBLIC COMMENT ON INFORMATION.—Information that is
submitted on a timely basis to the administering authority or the
Commission during the course of a proceeding under this title
shall be subject to comment by other parties to the proceeding
within such reasonable time as the administering authority or
the Commission shall provide. The administering authority and
the Commission, before making a final determination under section
705, 735, 751, or 753 shall cease collecting information and shall
provide the parties with a final opportunity to comment on the
information obtained by the administering authority or the Commis-
sion (as the case may be) upon which the parties have not previously
had an opportunity to comment. Comments containing new factual
information shall be disregarded.
‘‘(h) TERMINATION OF INVESTIGATION OR REVOCATION OF ORDER
FOR LACK OF INTEREST.—The administering authority may—
‘‘(1) terminate an investigation under subtitle A or B with
respect to a domestic like product if, prior to publication of
an order under section 706 or 736, the administering authority
determines that producers accounting for substantially all of
the production of that domestic like product have expressed
a lack of interest in issuance of an order; and
‘‘(2) revoke an order issued under section 706 or 736 with
respect to a domestic like product, or terminate an investigation
suspended under section 704 or 734 with respect to a domestic
H. R. 5110—88
like product, if the administering authority determines that
producers accounting for substantially all of the production
of that domestic like product, have expressed a lack of interest
in the order or suspended investigation.
‘‘(i) VERIFICATION.—The administering authority shall verify
all information relied upon in making—
‘‘(1) a final determination in an investigation,
‘‘(2) a revocation under section 751(d), and
‘‘(3) a final determination in a review under section 751(a),
if—
‘‘(A) verification is timely requested by an interested
party as defined in section 771(9)(C), (D), (E), (F), or (G),
and
‘‘(B) no verification was made under this subparagraph
during the 2 immediately preceding reviews and determina-
tions under section 751(a) of the same order, finding, or
notice, except that this clause shall not apply if good cause
for verification is shown.’’.
(b) AVAILABILITY OF NONPROPRIETARY INFORMATION.—Section
777(a)(4) (19 U.S.C. 1677f(a)(4)) is amended by striking ‘‘may dis-
close’’ and inserting ‘‘shall disclose’’.
(c) DETERMINATIONS ON THE BASIS OF THE FACTS AVAILABLE.—
Section 776 (19 U.S.C. 1677e) is amended to read as follows:
‘‘SEC. 776. 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 administering authority or the Commission under
this title,
‘‘(B) fails to provide such information by the deadlines
for submission of the information or in the form and man-
ner requested, subject to subsections (c)(1) and (e) of section
782,
‘‘(C) significantly impedes a proceeding under this title,
or
‘‘(D) provides such information but the information
cannot be verified as provided in section 782(i),
the administering authority and the Commission shall, subject to
section 782(d), use the facts otherwise available in reaching the
applicable determination under this title.
‘‘(b) ADVERSE INFERENCES.—If the administering 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 authority or the
Commission (as the case may be), in reaching the applicable deter-
mination under this title, may use an inference that is adverse
to the interests of that party in selecting from among the facts
otherwise available. Such adverse inference may include reliance
on information derived from—
‘‘(1) the petition,
‘‘(2) a final determination in the investigation under this
title,
H. R. 5110—89
‘‘(3) any previous review under section 751 or determination
under section 753, or
‘‘(4) any other information placed on the record.
‘‘(c) CORROBORATION OF SECONDARY INFORMATION.—When the
administering authority or the Commission relies on secondary
information rather than on information obtained in the course
of an investigation or review, the administering authority or the
Commission, as the case may be, shall, to the extent practicable,
corroborate that information from independent sources that are
reasonably at their disposal.’’.
(d) CONFORMING AMENDMENTS.—
(1) Section 777(e) (19 U.S.C. 1677f(e)) is repealed.
(2) The table of contents for title VII is amended—
(A) by amending the item relating to section 776 to
read as follows:
‘‘Sec. 776. Determinations on the basis of the facts available.’’;
and
(B) by inserting after the item relating to section 781
the following new item:
‘‘Sec. 782. Conduct of investigations and administrative reviews.’’.
SEC. 232. ANTIDUMPING PETITIONS BY THIRD COUNTRIES.
(a) IN GENERAL.—Subtitle D of title VII (19 U.S.C. 1677 et
seq.), as amended by section 231(a), is amended by adding at
the end the following new section:
‘‘SEC. 783. ANTIDUMPING PETITIONS BY THIRD COUNTRIES.
‘‘(a) FILING OF PETITION.—The government of a WTO member
may file with the Trade Representative a petition requesting that
an investigation be conducted to determine if—
‘‘(1) imports from another country are being sold in the
United States at less than fair value, and
‘‘(2) an industry in the petitioning country is materially
injured by reason of those imports.
‘‘(b) INITIATION.—The Trade Representative, after consultation
with the administering authority and the Commission and obtaining
the approval of the WTO Council for Trade in Goods, shall deter-
mine whether to initiate an investigation described in subsection
(a).
‘‘(c) DETERMINATIONS.—Upon initiation of an investigation
under this section, the Trade Representative shall request the fol-
lowing determinations be made according to substantive and pro-
cedural requirements specified by the Trade Representative,
notwithstanding any other provision of this title:
‘‘(1) The administering authority shall determine whether
imports into the United States of the subject merchandise are
being sold at less than fair value.
‘‘(2) The Commission shall determine whether an industry
in the petitioning country is materially injured by reason of
imports of the subject merchandise into the United States.
‘‘(d) PUBLIC COMMENT.—An opportunity for public comment
shall be provided, as appropriate—
‘‘(1) by the Trade Representative, in making the determina-
tion required by subsection (b), and
‘‘(2) by the administering authority and the Commission,
in making the determination required by subsection (c).
H. R. 5110—90
‘‘(e) ISSUANCE OF ORDER.—If the administering authority makes
an affirmative determination under paragraph (1) of subsection
(c), and the Commission makes an affirmative determination under
paragraph (2) of subsection (c), the administering authority shall
issue an antidumping duty order in accordance with section 736
and take such other actions as are required by section 736.
‘‘(f) REVIEWS
OF DETERMINATIONS.—For purposes of review
under section 516A or review under section 751, if an order is
issued under subsection (d), the final determinations of the admin-
istering authority and the Commission under this section shall
be treated as final determinations made under section 735.
‘‘(g) ACCESS TO INFORMATION.—Section 777 shall apply to inves-
tigations under this section, to the extent specified by the Trade
Representative, after consultation with the administering authority
and the Commission.’’.
(b) CONFORMING AMENDMENT.—The table of contents for title
VII, as amended by section 231(d)(2), is amended by adding after
the item relating to section 782 the following new item:
‘‘Sec. 783. Antidumping petitions by third countries.’’.
SEC. 233. CONFORMING AMENDMENTS.
(a) TERMINOLOGY.—
(1) NORMAL
VALUE.—Each of the following sections is
amended by striking ‘‘foreign market value’’ each place it
appears in the text and in the heading and inserting ‘‘normal
value’’:
(A) Section 731 (19 U.S.C. 1673).
(B) Section 734 (19 U.S.C. 1673c).
(C) Section 736 (19 U.S.C. 1673e).
(D) Section 739 (19 U.S.C. 1673h).
(E) Section 780 (19 U.S.C. 1677i).
(2) EXPORT PRICE.—
(A) IN
GENERAL.—Each of the following sections is
amended by striking ‘‘United States price’’ each place it
appears in the text and in the heading and inserting ‘‘export
price (or the constructed export price)’’:
(i) Section 731 (19 U.S.C. 1673).
(ii) Section 734 (19 U.S.C. 1673c).
(iii) Section 736 (19 U.S.C. 1673e).
(iv) Section 738 (19 U.S.C. 1673g).
(v) Section 739 (19 U.S.C. 1673h).
(vi) Section 780 (19 U.S.C. 1677i).
(B) EXPORTER’S
SALES
PRICE.—Section 738(b)(3) (19
U.S.C. 1673g(b)(3)) is amended by striking ‘‘exporter’s sales
price’’ and inserting ‘‘constructed export price’’.
(3) DOMESTIC LIKE PRODUCT.—
(A) Each of the following sections is amended by strik-
ing ‘‘like product’’ each place it appears in the text and
in the heading and inserting ‘‘domestic like product’’:
(i) Section 771(4)(C) and (D) (19 U.S.C. 1677(4)(C)
and (D)).
(ii) 
Section 
771(7)(C)(iii)(IV) 
(19 
U.S.C.
1677(7)(C)(iii)(IV)).
(iii) Section 771(9) (19 U.S.C. 1677(9)).
(iv) Section 771(10) (19 U.S.C. 1677(10)).
(B) Sections 771(7)(B)(i)(II) and (III) and section
771(7)(C)(ii)(I) (19 U.S.C. 1677(7)(B)(i)(II) and (III) and
H. R. 5110—91
(C)(ii)(I)) are amended by striking ‘‘like products’’ and
inserting ‘‘domestic like products’’.
(4) FOREIGN
LIKE
PRODUCT.—Section 771(16) (19 U.S.C.
1677(16)) is amended—
(A) by striking ‘‘such or similar merchandise’’ in the
text and inserting ‘‘foreign like product’’, and
(B) by amending the heading to read as follows: ‘‘FOR-
EIGN LIKE PRODUCT.’’.
(5) SUBJECT MERCHANDISE.—
(A) Section 701(d) (19 U.S.C. 1671(d)) is amended by
striking ‘‘a class or kind of merchandise subject to a
countervailing duty investigation’’ and inserting ‘‘subject
merchandise’’.
(B) Section 702(e) (19 U.S.C. 1671a(e)) is amended
by striking ‘‘class or kind of merchandise that is the subject
of the investigation’’ each place it appears and inserting
‘‘subject merchandise’’.
(C) Section 703(b)(1) (19 U.S.C. 1671b(b)(1)) is amended
by striking ‘‘merchandise which is the subject of the inves-
tigation’’ and inserting ‘‘subject merchandise’’.
(D) Section 704(a)(2)(A) (19 U.S.C. 1671c(a)(2)(A)) is
amended by striking ‘‘merchandise that is subject to the
investigation’’ and inserting ‘‘subject merchandise’’.
(E) Section 704(b) (19 U.S.C. 1671c(b)) is amended
by striking ‘‘merchandise which is the subject of the inves-
tigation’’ and inserting ‘‘subject merchandise’’.
(F) Section 704(c)(1) (19 U.S.C. 1671c(c)(1)) is amended
by striking ‘‘merchandise which is the subject of the inves-
tigation’’ and inserting ‘‘subject merchandise’’.
(G) Section 704(c)(2) (19 U.S.C. 1671c(c)(2)) is amended
by striking ‘‘merchandise which is the subject of the inves-
tigation’’ and inserting ‘‘subject merchandise’’.
(H) Section 704(c)(3) (19 U.S.C. 1671c(c)(3)) is amended
by striking ‘‘merchandise which is the subject of an inves-
tigation’’ and inserting ‘‘subject merchandise’’.
(I) Section 704(d)(3) (19 U.S.C. 1671c(d)(3)) is amended
by striking ‘‘merchandise covered by such agreement’’ and
inserting ‘‘subject merchandise’’.
(J) Section 704(f)(1)(A) (19 U.S.C. 1671c(f)(1)(A)) is
amended by striking ‘‘merchandise which is the subject
of the investigation’’ and inserting ‘‘subject merchandise’’.
(K) Subparagraphs (A)(i) and (B) of section 704(f)(2)
(19 U.S.C. 1671c(f)(2)(A)(i) and (B)) are amended by strik-
ing ‘‘merchandise which is the subject of the investigation’’
each place it appears and inserting ‘‘subject merchandise’’.
(L) Paragraphs (2) and (3) of section 704(h) (19 U.S.C.
1671c(h) (2) and (3)) are amended by striking ‘‘merchandise
which is the subject of the investigation’’ each place it
appears and inserting ‘‘subject merchandise’’.
(M) Section 704(j) (19 U.S.C. 1671c(j)) is amended by
striking ‘‘merchandise which is the subject of the investiga-
tion’’ and inserting ‘‘subject merchandise’’.
(N) Section 705(a)(1) (19 U.S.C. 1671d(a)(1)) is
amended by striking ‘‘the merchandise’’ and inserting ‘‘the
subject merchandise’’.
(O) Section 706(a)(2) (19 U.S.C. 1671e(a)(2)), as redesig-
nated by section 265, is amended by striking ‘‘class or
H. R. 5110—92
kind of merchandise to which it applies’’ and inserting
‘‘subject merchandise’’.
(P) Section 732(e)(1) (19 U.S.C. 1673a(e)(1)) is amended
by striking ‘‘class or kind of the merchandise which is
the subject of the investigation’’ and inserting ‘‘the subject
merchandise’’.
(Q) Section 732(e)(2) (19 U.S.C. 1673a(e)(2)) is amended
by striking ‘‘merchandise which is the subject of the inves-
tigation’’ and inserting ‘‘subject merchandise’’.
(R) Section 732(e) (19 U.S.C. 1673a(e)) is amended
by striking ‘‘class or kind of merchandise that is the subject
of the investigation’’ each place it appears and inserting
‘‘subject merchandise’’.
(S) Section 734(a)(2)(A) (19 U.S.C 1673c(a)(2)(A)) is
amended by striking ‘‘merchandise that is subject to the
investigation’’ and inserting ‘‘subject merchandise’’.
(T) Subsections (b), (c)(1), (f)(1)(A), (f)(2)(A)(i), (g)(1),
(h)(2), (h)(3), and (j) of section 734 (19 U.S.C 1673c(b),
(c)(1), (f)(1)(A), (f)(2)(A)(i), (g)(1), (h)(2), (h)(3), and (j)) are
amended by striking ‘‘merchandise which is the subject
of the investigation’’ each place it appears and inserting
‘‘subject merchandise’’.
(U) Section 734(f)(2)(B) (19 U.S.C. 1673c(f)(2)(B)) is
amended by striking ‘‘merchandise subject to the investiga-
tion’’ and inserting ‘‘subject merchandise’’.
(V) Section 735(a)(1) (19 U.S.C. 1673d(a)(1)) is
amended by striking ‘‘merchandise which was the subject
of the investigation’’ and inserting ‘‘subject merchandise’’.
(W) Section 736(a)(2) (19 U.S.C. 1673e(a)(2)) is
amended by striking ‘‘class or kind of merchandise to which
it applies’’ and inserting ‘‘subject merchandise’’.
(X) Section 736(b)(1) (19 U.S.C. 1673e(b)(1)) is amended
by striking ‘‘merchandise subject to the antidumping duty
order’’ and inserting ‘‘subject merchandise’’.
(Y) Section 736(b)(2) (19 U.S.C. 1673e(b)(2)) is amended
by striking ‘‘merchandise subject to an antidumping duty
order’’ and inserting ‘‘subject merchandise’’.
(Z) Section 762(a)(1) (19 U.S.C. 1676a(a)(1)) is amended
by striking ‘‘merchandise subject to the agreement’’ and
inserting ‘‘subject merchandise’’.
(AA) Section 762(b)(2) (19 U.S.C. 1676a(b)(2)) is
amended by striking ‘‘merchandise subject to the order’’
and inserting ‘‘subject merchandise’’.
(BB) Section 771(7)(B)(i)(I) (19 U.S.C. 1677(7)(B)(i)(I))
is amended by striking ‘‘merchandise which is the subject
of the investigation’’ and inserting ‘‘subject merchandise’’.
(CC) Section 771(9)(A) (19 U.S.C. 1677(9)(A)) is
amended by striking ‘‘merchandise which is the subject
of an investigation under this title’’ and inserting ‘‘subject
merchandise’’.
(DD) Section 771(16)(A) (19 U.S.C. 1677(16)(A)) is
amended by striking ‘‘merchandise which is the subject
of an investigation’’ and inserting ‘‘subject merchandise’’.
(EE) Section 771(16)(B)(i) (19 U.S.C. 1677(16)(B)(i)) is
amended by striking ‘‘merchandise which is the subject
of an investigation’’ and inserting ‘‘subject merchandise’’.
H. R. 5110—93
(FF) Section 771(17) (19 U.S.C. 1677(17)) is amended
by striking ‘‘merchandise which is the subject of the inves-
tigation’’ and inserting ‘‘subject merchandise’’.
(GG) Section 771A(c) (19 U.S.C. 1677–1(c)) is amended
by striking ‘‘merchandise under investigation’’ and insert-
ing ‘‘subject merchandise’’.
(6) INITIATE.—(A) Each of the following sections is amended
by striking ‘‘commenced’’ and inserting ‘‘initiated’’:
(i) Section 702(a).
(ii) Section 702(b)(1).
(iii) Section 703(b)(1).
(iv) Section 703(c)(1).
(v) Section 732(a)(1).
(vi) Section 732(a)(2)(D).
(vii) Section 732(b)(1).
(viii) Section 733(b)(1)(A) and (B).
(ix) Section 733(b)(2).
(x) Section 733(c)(1).
(B) Sections 703(g)(1) and 733(b)(2) are each amended by
striking ‘‘commencement’’ and inserting ‘‘initiation’’.
(C) Section 732(a)(2)(B) is amended by striking ‘‘commence’’
and inserting ‘‘initiate’’.
(7) TECHNICAL
AMENDMENTS.—The table of contents for
title VII is amended—
(A) by amending the item relating to section 772 to
read as follows:
‘‘Sec. 772. Export price and constructed export price.’’;
(B) by striking ‘‘Foreign market value’’ in the item
relating to section 773 and inserting ‘‘Normal value’’, and
(C) by inserting after the item relating to section 708
the following new item:
‘‘Sec. 709. Conditional payment of countervailing duty.’’.
(b) OTHER CONFORMING AMENDMENTS.—
(1) WTO 
MEMBER.—Section 771(7)(F)(iii) (19 U.S.C.
1677(7)(F)(iii)) is amended—
(A) in subclause (I), by striking ‘‘GATT member’’ and
inserting ‘‘WTO member’’; and
(B) in subclause (II)—
(i) in the subclause heading, by striking ‘‘GATT
MEMBER’’ and inserting ‘‘WTO MEMBER’’;
(ii) by striking ‘‘GATT member’’ and inserting
‘‘WTO member’’; and
(iii) by striking ‘‘signatory’’ and all that follows
through ‘‘measures)’’ and inserting ‘‘WTO member’’.
(2) ADMINISTERING AUTHORITY.—Section 771(1) (19 U.S.C.
1677(1)) is amended by striking ‘‘the Treasury’’ and inserting
‘‘Commerce’’.
SEC. 234. APPLICATION TO CANADA AND MEXICO.
Pursuant to article 1902 of the North American Free Trade
Agreement and section 408 of the North American Free Trade
Agreement Implementation Act, the amendments made by this
title shall apply with respect to goods from Canada and Mexico.
H. R. 5110—94
Subtitle B—Subsidies Provisions
PART 1—COUNTERVAILABLE SUBSIDIES
SEC. 251. COUNTERVAILABLE SUBSIDY.
(a) IN GENERAL.—Section 771 (19 U.S.C. 1677) is amended
by striking paragraph (5) and inserting the following:
‘‘(5) COUNTERVAILABLE SUBSIDY.—
‘‘(A) IN GENERAL.—Except as provided in paragraph
(5B), a countervailable subsidy is a subsidy described in
this paragraph which is specific as described in paragraph
(5A).
‘‘(B) SUBSIDY DESCRIBED.—A subsidy is described in
this paragraph in the case in which an authority—
‘‘(i) provides a financial contribution,
‘‘(ii) provides any form of income or price support
within the meaning of Article XVI of the GATT 1994,
or
‘‘(iii) makes a payment to a funding mechanism
to provide a financial contribution, or entrusts or
directs a private entity to make a financial contribu-
tion, if providing the contribution would normally be
vested in the government and the practice does not
differ in substance from practices normally followed
by governments,
to a person and a benefit is thereby conferred. For purposes
of this paragraph and paragraphs (5A) and (5B), the term
‘authority’ means a government of a country or any public
entity within the territory of the country.
‘‘(C) OTHER FACTORS.—The determination of whether
a subsidy exists shall be made without regard to whether
the recipient of the subsidy is publicly or privately owned
and without regard to whether the subsidy is provided
directly or indirectly on the manufacture, production, or
export of merchandise. The administering authority is not
required to consider the effect of the subsidy in determining
whether a subsidy exists under this paragraph.
‘‘(D) FINANCIAL
CONTRIBUTION.—The term ‘financial
contribution’ means—
‘‘(i) the direct transfer of funds, such as grants,
loans, and equity infusions, or the potential direct
transfer of funds or liabilities, such as loan guarantees,
‘‘(ii) foregoing or not collecting revenue that is
otherwise due, such as granting tax credits or deduc-
tions from taxable income,
‘‘(iii) providing goods or services, other than gen-
eral infrastructure, or
‘‘(iv) purchasing goods.
‘‘(E) BENEFIT
CONFERRED.—A benefit shall normally
be treated as conferred where there is a benefit to the
recipient, including—
‘‘(i) in the case of an equity infusion, if the invest-
ment decision is inconsistent with the usual investment
practice of private investors, including the practice
regarding the provision of risk capital, in the country
in which the equity infusion is made,
H. R. 5110—95
‘‘(ii) in the case of a loan, if there is a difference
between the amount the recipient of the loan pays
on the loan and the amount the recipient would pay
on a comparable commercial loan that the recipient
could actually obtain on the market,
‘‘(iii) in the case of a loan guarantee, if there is
a difference, after adjusting for any difference in
guarantee fees, between the amount the recipient of
the guarantee pays on the guaranteed loan and the
amount the recipient would pay for a comparable
commercial loan if there were no guarantee by the
authority, and
‘‘(iv) in the case where goods or services are pro-
vided, if such goods or services are provided for less
than adequate remuneration, and in the case where
goods are purchased, if such goods are purchased for
more than adequate remuneration.
For purposes of clause (iv), the adequacy of remuneration
shall be determined in relation to prevailing market condi-
tions for the good or service being provided or the goods
being purchased in the country which is subject to the
investigation or review. Prevailing market conditions
include price, quality, availability, marketability, transpor-
tation, and other conditions of purchase or sale.
‘‘(F) CHANGE IN OWNERSHIP.—A change in ownership
of all or part of a foreign enterprise or the productive
assets of a foreign enterprise does not by itself require
a determination by the administering authority that a past
countervailable subsidy received by the enterprise no longer
continues to be countervailable, even if the change in
ownership is accomplished through an arm’s length
transaction.
‘‘(5A) SPECIFICITY.—
‘‘(A) IN
GENERAL.—A subsidy is specific if it is an
export subsidy described in subparagraph (B) or an import
substitution subsidy described in subparagraph (C), or if
it is determined to be specific pursuant to subparagraph
(D).
‘‘(B) EXPORT SUBSIDY.—An export subsidy is a subsidy
that is, in law or in fact, contingent upon export perform-
ance, alone or as 1 of 2 or more conditions.
‘‘(C) IMPORT SUBSTITUTION SUBSIDY.—An import substi-
tution subsidy is a subsidy that is contingent upon the
use of domestic goods over imported goods, alone or as
1 of 2 or more conditions.
‘‘(D) DOMESTIC
SUBSIDY.—In determining whether a
subsidy (other than a subsidy described in subparagraph
(B) or (C)) is a specific subsidy, in law or in fact, to
an enterprise or industry within the jurisdiction of the
authority providing the subsidy, the following guidelines
shall apply:
‘‘(i) Where the authority providing the subsidy,
or the legislation pursuant to which the authority oper-
ates, expressly limits access to the subsidy to an enter-
prise or industry, the subsidy is specific as a matter
of law.
H. R. 5110—96
‘‘(ii) Where the authority providing the subsidy,
or the legislation pursuant to which the authority oper-
ates, establishes objective criteria or conditions govern-
ing the eligibility for, and the amount of, a subsidy,
the subsidy is not specific as a matter of law, if—
‘‘(I) eligibility is automatic,
‘‘(II) the criteria or conditions for eligibility
are strictly followed, and
‘‘(III) the criteria or conditions are clearly set
forth in the relevant statute, regulation, or other
official document so as to be capable of verification.
For purposes of this clause, the term ‘objective criteria
or conditions’ means criteria or conditions that are
neutral and that do not favor one enterprise or industry
over another.
‘‘(iii) Where there are reasons to believe that a
subsidy may be specific as a matter of fact, the subsidy
is specific if one or more of the following factors exist:
‘‘(I) The actual recipients of the subsidy,
whether considered on an enterprise or industry
basis, are limited in number.
‘‘(II) An enterprise or industry is a predomi-
nant user of the subsidy.
‘‘(III) An enterprise or industry receives a dis-
proportionately large amount of the subsidy.
‘‘(IV) The manner in which the authority
providing the subsidy has exercised discretion in
the decision to grant the subsidy indicates that
an enterprise or industry is favored over others.
In evaluating the factors set forth in subclauses (I),
(II), (III), and (IV), the administering authority shall
take into account the extent of diversification of eco-
nomic activities within the jurisdiction of the authority
providing the subsidy, and the length of time during
which the subsidy program has been in operation.
‘‘(iv) Where a subsidy is limited to an enterprise
or industry located within a designated geographical
region within the jurisdiction of the authority providing
the subsidy, the subsidy is specific.
For purposes of this paragraph and paragraph (5B), any ref-
erence to an enterprise or industry is a reference to a foreign
enterprise or foreign industry and includes a group of such
enterprises or industries.
‘‘(5B) CATEGORIES OF NONCOUNTERVAILABLE SUBSIDIES.—
‘‘(A) IN GENERAL.—Notwithstanding the provisions of
paragraphs (5) and (5A), in the case of merchandise
imported from a Subsidies Agreement country, a subsidy
shall be treated as noncountervailable if the administering
authority determines in an investigation under subtitle
A or a review under subtitle C that the subsidy meets
all of the criteria described in subparagraph (B), (C), or
(D), as the case may be, or the provisions of subparagraph
(E)(i) apply.
‘‘(B) RESEARCH SUBSIDY.—
‘‘(i) IN GENERAL.—Except for a subsidy provided
on the manufacture, production, or export of civil air-
craft, a subsidy for research activities conducted by
H. R. 5110—97
a person, or by a higher education or research
establishment on a contract basis with a person, shall
be treated as noncountervailable, if the subsidy covers
not more than 75 percent of the costs of industrial
research or not more than 50 percent of the costs
of precompetitive development activity, and such sub-
sidy is limited exclusively to—
‘‘(I) the costs of researchers, technicians, and
other supporting staff employed exclusively in the
research activity,
‘‘(II) the costs of instruments, equipment, land,
or buildings that are used exclusively and perma-
nently (except when disposed of on a commercial
basis) for the research activity,
‘‘(III) the costs of consultancy and equivalent
services used exclusively for the research activity,
including costs for bought-in research, technical
knowledge, and patents,
‘‘(IV) 
additional 
overhead 
costs 
incurred
directly as a result of the research activity, and
‘‘(V) other operating costs (such as materials
and supplies) incurred directly as a result of the
research activity.
‘‘(ii) 
DEFINITIONS.—For 
purposes 
of 
this
subparagraph—
‘‘(I) INDUSTRIAL RESEARCH.—The term ‘indus-
trial research’ means planned search or critical
investigation aimed at the discovery of new knowl-
edge, with the objective that such knowledge may
be useful in developing new products, processes,
or services, or in bringing about a significant
improvement to existing products, processes, or
services.
‘‘(II) PRECOMPETITIVE
DEVELOPMENT
ACTIV-
ITY.—The term ‘precompetitive development activ-
ity’ means the translation of industrial research
findings into a plan, blueprint, or design for new,
modified, or improved products, processes, or serv-
ices, whether intended for sale or use, including
the creation of a first prototype that would not
be capable of commercial use. The term also may
include the conceptual formulation and design of
products, processes, or services alternatives and
initial demonstration or pilot projects, if these
same projects cannot be converted or used for
industrial application or commercial exploitation.
The term does not include routine or periodic alter-
ations to existing products, production lines, manu-
facturing processes, services, or other ongoing
operations even if those alterations may represent
improvements.
‘‘(iii) CALCULATION RULES.—
‘‘(I) IN GENERAL.—In the case of a research
activity that spans both industrial research and
precompetitive development activity, the allowable
level of the noncountervailable subsidy shall not
exceed 62.5 percent of the costs set forth in
H. R. 5110—98
subclauses (I), (II), (III), (IV), and (V) of clause
(i).
‘‘(II) TOTAL
ELIGIBLE
COSTS.—The allowable
level of a noncountervailable subsidy described in
clause (i) shall be based on the total eligible costs
incurred over the duration of a particular project.
‘‘(C) SUBSIDY TO DISADVANTAGED REGIONS.—
‘‘(i) IN
GENERAL.—A subsidy provided, pursuant
to a general framework of regional development, to
a person located in a disadvantaged region within a
country shall be treated as noncountervailable, if it
is not specific (within the meaning of paragraph (5A))
within eligible regions and if the following conditions
are met:
‘‘(I) Each region identified as disadvantaged
within the territory of a country is a clearly des-
ignated, contiguous geographical area with a defin-
able economic and administrative identity.
‘‘(II) Each region is considered a disadvantaged
region on the basis of neutral and objective criteria
indicating that the region is disadvantaged
because of more than temporary circumstances,
and such criteria are clearly stated in the relevant
statute, regulation, or other official document so
as to be capable of verification.
‘‘(III) The criteria described in subclause (II)
include a measurement of economic development.
‘‘(IV) Programs provided within a general
framework of regional development include ceilings
on the amount of assistance that can be granted
to a subsidized project. Such ceilings are differen-
tiated according to the different levels of develop-
ment of assisted regions, and are expressed in
terms of investment costs or costs of job creation.
Within such ceilings, the distribution of assistance
is sufficiently broad and even to avoid the predomi-
nant use of a subsidy by, or the provision of dis-
proportionately large amounts of a subsidy to, an
enterprise or industry as described in paragraph
(5A)(D).
‘‘(ii) MEASUREMENT OF ECONOMIC DEVELOPMENT.—
For purposes of clause (i), the measurement of economic
development shall be based on one or more of the
following factors:
‘‘(I) Per capita income, household per capita
income, or per capita gross domestic product that
does not exceed 85 percent of the average for the
country subject to investigation or review.
‘‘(II) An unemployment rate that is at least
110 percent of the average unemployment rate
for the country subject to investigation or review.
The measurement of economic development shall cover
a 3-year period, but may be a composite measurement
and may include factors other than those set forth
in this clause.
‘‘(iii) 
DEFINITIONS.—For 
purposes 
of 
this
subparagraph—
H. R. 5110—99
‘‘(I) GENERAL FRAMEWORK OF REGIONAL DEVEL-
OPMENT.—The term ‘general framework of regional
development’ means that the regional subsidy pro-
grams are part of an internally consistent and
generally applicable regional development policy,
and that regional development subsidies are not
granted in isolated geographical points having no,
or virtually no, influence on the development of
a region.
‘‘(II) NEUTRAL AND OBJECTIVE CRITERIA.—The
term ‘neutral and objective criteria’ means criteria
that do not favor certain regions beyond what is
appropriate for the elimination or reduction of
regional disparities within the framework of the
regional development policy.
‘‘(D) SUBSIDY FOR ADAPTATION OF EXISTING FACILITIES
TO NEW ENVIRONMENTAL REQUIREMENTS.—
‘‘(i) IN GENERAL.—A subsidy that is provided to
promote the adaptation of existing facilities to new
environmental requirements that are imposed by stat-
ute or by regulation, and that result in greater con-
straints and financial burdens on the recipient of the
subsidy, shall be treated as noncountervailable, if the
subsidy—
‘‘(I) is a one-time nonrecurring measure,
‘‘(II) is limited to 20 percent of the cost of
adaptation,
‘‘(III) does not cover the cost of replacing and
operating the subsidized investment, a cost that
must be fully borne by the recipient,
‘‘(IV) is directly linked and proportionate to
the recipient’s planned reduction of nuisances and
pollution, and does not cover any manufacturing
cost savings that may be achieved, and
‘‘(V) is available to all persons that can adopt
the new equipment or production processes.
‘‘(ii) EXISTING
FACILITIES.—For purposes of this
subparagraph, the term ‘existing facilities’ means facili-
ties that have been in operation for at least 2 years
before the date on which the new environmental
requirements are imposed.
‘‘(E) NOTIFIED SUBSIDY PROGRAM.—
‘‘(i) GENERAL
RULE.—If a subsidy is provided
pursuant to a program that has been notified in accord-
ance with Article 8.3 of the Subsidies Agreement, the
subsidy shall be treated as noncountervailable and
shall not be subject to investigation or review under
this title.
‘‘(ii) EXCEPTION.—Notwithstanding clause (i), a
subsidy shall be treated as countervailable if—
‘‘(I) the Trade Representative notifies the
administering authority that a determination has
been made pursuant to Article 8.4 or 8.5 of the
Subsidies Agreement that the subsidy, or the pro-
gram pursuant to which the subsidy was provided,
does not satisfy the conditions and criteria of Arti-
cle 8.2 of the Subsidies Agreement; and
H. R. 5110—100
‘‘(II) the subsidy is specific within the meaning
of paragraph (5A).
‘‘(F) CERTAIN SUBSIDIES ON AGRICULTURAL PRODUCTS.—
Domestic support measures that are provided with respect
to products listed in Annex 1 to the Agreement on Agri-
culture, and that the administering authority determines
conform fully to the provisions of Annex 2 to that Agree-
ment, shall be treated as noncountervailable. Upon request
by the administering authority, the Trade Representative
shall provide advice regarding the interpretation and
application of Annex 2.
‘‘(G) PROVISIONAL APPLICATION.—
‘‘(i) Subparagraphs (B), (C), (D), and (E) shall not
apply on or after the first day of the month that
is 66 months after the WTO Agreement enters into
force, unless the provisions of such subparagraphs are
extended pursuant to section 282(c) of the Uruguay
Round Agreements Act.
‘‘(ii) Subparagraph (F) shall not apply to imports
from a WTO member country at the end of the 9-
year period beginning on January 1, 1995. The Trade
Representative shall determine the precise termination
date for each WTO member country in accordance with
paragraph (i) of Article 1 of the Agreement on Agri-
culture and such date shall be notified to the admin-
istering authority.’’.
(b) NET COUNTERVAILABLE SUBSIDY.—Section 771(6) (19 U.S.C.
1677(6)) is amended by inserting ‘‘countervailable’’ before ‘‘subsidy’’
each place it appears in the text and in the heading.
PART 2—REPEAL OF SECTION 303 AND
CONFORMING AMENDMENTS
SEC. 261. REPEAL OF SECTION 303.
(a) IN GENERAL.—Section 303 of the Tariff Act of 1930 (19
U.S.C. 1303) is repealed effective on the effective date of this
title.
(b) SAVINGS PROVISIONS.—
(1) CONTINUING EFFECT OF LEGAL DOCUMENTS.—All orders,
determinations, and other administrative actions—
(A) which have been issued pursuant to an investiga-
tion conducted under section 303 of the Tariff Act of 1930,
and
(B) which are in effect on the effective date of this
title, or were final before such date and are to become
effective on or after such date,
shall continue in effect according to their terms until modified,
terminated, superseded, set aside, or revoked in accordance
with law by the administering authority, the International
Trade Commission, or a court of competent jurisdiction, or
by operation of law. Except as provided in paragraph (3), such
orders or determinations shall be subject to review under sec-
tion 751 of the Tariff Act of 1930 and, to the extent applicable,
investigation under section 753 of such Act (as added by this
title).
(2) PROCEEDINGS NOT AFFECTED.—The provisions of sub-
section (a) shall not affect any proceedings, including notices
H. R. 5110—101
of proposed rulemaking, pending before the administering
authority or the International Trade Commission on the effec-
tive date of this title with respect to such section 303. Orders
shall be issued in such proceedings, appeals shall be taken
therefrom, and payments shall be made pursuant to such
orders, in accordance with such section 303 as in effect on
the day before the effective date of this title and, except as
provided in paragraph (3), shall be subject to review under
section 751 of the Tariff Act of 1930 and, to the extent
applicable, investigation under section 753 of such Act. Orders
issued in any such proceedings shall continue in effect until
modified, terminated, superseded, set aside, or revoked in
accordance with law by the administering authority, a court
of competent jurisdiction, or by operation of law. Nothing in
this section shall be deemed to prohibit the discontinuance
or modification of any such proceeding under the same terms
and conditions and to the same extent that such proceeding
could have been discontinued or modified if this section had
not been enacted.
(3) SUITS NOT AFFECTED.—The provisions of subsection (a)
shall not affect the review pursuant to section 516A of the
Tariff Act of 1930 of a countervailing duty order issued pursu-
ant to an investigation conducted under section 303 of such
Act or a review of a countervailing duty order issued under
section 751 of such Act, if such review is pending or the time
for filing such review has not expired on the effective date
of this title.
(c) DEFINITION OF ADMINISTERING AUTHORITY.—For purposes
of this section, the term ‘‘administering authority’’ has the meaning
given such term by section 771(1) of the Tariff Act of 1930.
(d) CONFORMING AMENDMENTS.—
(1) IN GENERAL.—
(A) AMENDMENTS TO TRADE ACT OF 1974.—
(i) Section 331(d)(3) of the Trade Act of 1974 (19
U.S.C. 1303 note) is repealed.
(ii) Section 152(a)(2) of the Trade Act of 1974 (19
U.S.C. 2192(a)(2)) is amended by striking ‘‘(A) in the
case of’’ and all that follows through ‘‘(B)’’.
(iii) Section 154(a) of the Trade Act of 1974 (19
U.S.C. 2194(a)) is amended by striking ‘‘or section
303(e) of the Tariff Act of 1930,’’.
(B) AMENDMENTS TO TARIFF ACT OF 1930.—The following
sections of the Tariff Act of 1930 are amended:
(i) Section 315(d) (19 U.S.C. 1315(d)) is amended
by inserting ‘‘(as in effect on the day before the effective
date of title II of the Uruguay Round Agreements
Act) or section 701’’ after ‘‘section 303’’.
(ii) Section 337(b)(3) (19 U.S.C. 1337(b)(3)) is
amended—
(I) by striking ‘‘of section 303 or subtitle B
of title VII of the Tariff Act of 1930’’ and inserting
‘‘of subtitle B of title VII of this Act’’,
(II) by striking ‘‘section 303, 671, or 673’’ and
inserting ‘‘section 701 or 731’’,
(III) by striking ‘‘section 303, 701,’’ and insert-
ing ‘‘section 701’’,
H. R. 5110—102
(IV) by striking ‘‘of the Secretary under section
303 of this Act or’’, and
(V) by striking ‘‘matter within such section
303, 701, or’’ and inserting ‘‘matter within such
section 701 or’’.
(iii) Section 701 (19 U.S.C. 1671) is amended by
striking subsection (f).
(iv) Section 780(c)(1) (19 U.S.C. 1677i(c)(1)) is
amended by striking ‘‘, 732(a), or 303’’ and inserting
‘‘or 732(a)’’.
(C) OTHER REFERENCES.—Any reference to section 303
in any other Federal law, Executive order, rule, or regula-
tion shall be treated as a reference to section 303 of the
Tariff Act of 1930 as in effect on the day before the effective
date of title II of this Act.
(2) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect on the effective date of this title.
SEC. 262. IMPOSITION OF COUNTERVAILING DUTIES.
Section 701 (a), (b), and (c) (19 U.S.C. 1671 (a), (b), and (c))
are amended to read as follows:
‘‘(a) GENERAL RULE.—If—
‘‘(1) the administering authority determines that the
government of a country or any public entity within the terri-
tory of a country is providing, directly or indirectly, a
countervailable subsidy with respect to the manufacture,
production, or export of a class or kind of merchandise imported,
or sold (or likely to be sold) for importation, into the United
States, and
‘‘(2) in the case of merchandise imported from a Subsidies
Agreement country, the Commission determines that—
‘‘(A) an industry in the United States—
‘‘(i) is materially injured, or
‘‘(ii) is threatened with material injury, or
‘‘(B) the establishment of an industry in the United
States is materially retarded,
by reason of imports of that merchandise or by reason of sales
(or the likelihood of sales) of that merchandise for importation,
then there shall be imposed upon such merchandise a countervailing
duty, in addition to any other duty imposed, equal to the amount
of the net countervailable subsidy. For purposes of this subsection
and section 705(b)(1), a reference to the sale of merchandise includes
the entering into of any leasing arrangement regarding the mer-
chandise that is equivalent to the sale of the merchandise.
‘‘(b) SUBSIDIES AGREEMENT COUNTRY.—For purposes of this
title, the term ‘Subsidies Agreement country’ means—
‘‘(1) a WTO member country,
‘‘(2) a country which the President has determined has
assumed obligations with respect to the United States which
are substantially equivalent to the obligations under the Sub-
sidies Agreement, or
‘‘(3) a country with respect to which the President deter-
mines that—
‘‘(A) there is an agreement in effect between the United
States and that country which—
‘‘(i) was in force on the date of the enactment
of the Uruguay Round Agreements Act, and
H. R. 5110—103
‘‘(ii) requires unconditional most-favored-nation
treatment with respect to articles imported into the
United States, and
‘‘(B) the agreement described in subparagraph (A) does
not expressly permit—
‘‘(i) actions required or permitted by the GATT
1947 or GATT 1994, as defined in section 2(1) of the
Uruguay Round Agreements Act, or required by the
Congress, or
‘‘(ii) nondiscriminatory prohibitions or restrictions
on importation which are designed to prevent deceptive
or unfair practices.
‘‘(c) COUNTERVAILING DUTY INVESTIGATIONS INVOLVING IMPORTS
NOT ENTITLED
TO
A MATERIAL INJURY DETERMINATION.—In the
case of any article or merchandise imported from a country which
is not a Subsidies Agreement country—
‘‘(1) no determination by the Commission under section
703(a), 704, or 705(b) shall be required,
‘‘(2) an investigation may not be suspended under section
704(c) or 704(l),
‘‘(3) no determination as to the presence of critical cir-
cumstances shall be made under section 703(e) or 705(a)(2),
‘‘(4) section 706(c) shall not apply,
‘‘(5) any reference to a determination described in para-
graph (1) or (3), or to the suspension of an investigation under
section 704(c) or 704(l), shall be disregarded, and
‘‘(6) section 751(c) shall not apply.’’.
SEC. 263. DE MINIMIS COUNTERVAILABLE SUBSIDY.
(a) PRELIMINARY DETERMINATIONS.—Section 703(b) (19 U.S.C.
1671b(b)) is amended by adding at the end the following new
paragraph:
‘‘(4) DE MINIMIS COUNTERVAILABLE SUBSIDY.—
‘‘(A) GENERAL RULE.—In making a determination under
this subsection, the administering authority shall disregard
any de minimis countervailable subsidy. For purposes of
the preceding sentence, a countervailable subsidy is de
minimis if the administering authority determines that
the aggregate of the net countervailable subsidies is less
than 1 percent ad valorem or the equivalent specific rate
for the subject merchandise.
‘‘(B) EXCEPTION FOR DEVELOPING COUNTRIES.—In the
case of subject merchandise imported from a Subsidies
Agreement country (other than a country to which subpara-
graph (C) applies) designated by the Trade Representative
as a developing country in accordance with section 771(36),
a countervailable subsidy is de minimis if the administering
authority determines that the aggregate of the net
countervailable subsidies does not exceed 2 percent ad valo-
rem or the equivalent specific rate for the subject merchan-
dise.
‘‘(C) CERTAIN OTHER DEVELOPING COUNTRIES.—In the
case of subject merchandise imported from a Subsidies
Agreement country that is—
‘‘(i) a least developed country, as determined by
the Trade Representative in accordance with section
771(36), or
H. R. 5110—104
‘‘(ii) a developing country with respect to which
the Trade Representative has notified the administer-
ing authority that the country has eliminated its export
subsidies on an expedited basis within the meaning
of Article 27.11 of the Subsidies Agreement,
subparagraph (B) shall be applied by substituting ‘3 per-
cent’ for ‘2 percent’.
‘‘(D) LIMITATIONS ON APPLICATION OF SUBPARAGRAPH
(C).—
‘‘(i) IN
GENERAL.—In the case of a country
described in subparagraph (C)(i), the provisions of
subparagraph (C) shall not apply after the date that
is 8 years after the date the WTO Agreement enters
into force.
‘‘(ii) SPECIAL RULE FOR SUBPARAGRAPH (C)(ii) COUN-
TRIES.—In the case of a country described in subpara-
graph (C)(ii), the provisions of subparagraph (C) shall
not apply after the earlier of—
‘‘(I) the date that is 8 years after the date
the WTO Agreement enters into force, or
‘‘(II) the date on which the Trade Representa-
tive notifies the administering authority that such
country is providing an export subsidy.’’.
(b) 
FINAL
DETERMINATIONS.—Section 
705(a) 
(19 
U.S.C.
1671d(a)) is amended by adding at the end the following new
paragraph:
‘‘(3) DE
MINIMIS
COUNTERVAILABLE
SUBSIDY.—In making
a determination under this subsection, the administering
authority shall disregard any countervailable subsidy that is
de minimis as defined in section 703(b)(4).’’.
SEC. 264. DETERMINATION OF COUNTERVAILABLE SUBSIDY RATE.
(a) PRELIMINARY DETERMINATION.—Section 703(d) (19 U.S.C.
1673b(d)) is amended—
(1) by striking paragraph (2);
(2) by redesignating paragraph (1), as amended by section
215(a)(1), as paragraph (2);
(3) by inserting ‘‘and’’ at the end of paragraph (2), as
so redesignated; and
(4) by inserting before such paragraph (2) the following
new paragraph:
‘‘(1)(A) shall—
‘‘(i) determine an estimated individual countervailable
subsidy rate for each exporter and producer individually
investigated, and, in accordance with section 705(c)(5), an
estimated all-others rate for all exporters and producers
not individually investigated and for new exporters and
producers within the meaning of section 751(a)(2)(B), or
‘‘(ii) if section 777A(e)(2)(B) applies, determine a single
estimated country-wide subsidy rate, applicable to all
exporters and producers, and
‘‘(B) shall order the posting of a cash deposit, bond, or
other security, as the administering authority deems appro-
priate, for each entry of the subject merchandise in an amount
based on the estimated individual countervailable subsidy rate,
the estimated all-others rate, or the estimated country-wide
subsidy rate, whichever is applicable,’’.
H. R. 5110—105
(b) FINAL DETERMINATION.—
(1) IN GENERAL.—Section 705(c)(1) (19 U.S.C. 1671d(c)(1))
is amended—
(A) in subparagraph (B)—
(i) by redesignating such subparagraph as subpara-
graph (C); and
(ii) by striking ‘‘under paragraphs (1) and (2)’’ and
all that follows through ‘‘security’’ and inserting ‘‘the
suspension of liquidation under paragraph (2) of section
703(d)’’;
(B) by striking ‘‘and’’ at the end of subparagraph (A);
and
(C) by inserting after subparagraph (A) the following
new subparagraph:
‘‘(B)(i) the administering authority shall—
‘‘(I) 
determine 
an 
estimated 
individual
countervailable subsidy rate for each exporter and pro-
ducer individually investigated, and, in accordance
with paragraph (5), an estimated all-others rate for
all exporters and producers not individually inves-
tigated and for new exporters and producers within
the meaning of section 751(a)(2)(B), or
‘‘(II) if 777A(e)(2)(B) applies, determine a single
estimated country-wide subsidy rate, applicable to all
exporters and producers,
‘‘(ii) shall order the posting of a cash deposit, bond,
or other security, as the administering authority deems
appropriate, for each entry of the subject merchandise in
an 
amount 
based 
on 
the 
estimated 
individual
countervailable subsidy rate, the estimated all-others rate,
or the estimated country-wide subsidy rate, whichever is
applicable, and’’.
(2) METHOD FOR DETERMINING COUNTERVAILABLE SUBSIDY
RATE.—Section 705(c) (19 U.S.C. 1671d(c)) is amended by add-
ing at the end the following new paragraph:
‘‘(5) METHOD FOR DETERMINING THE ALL-OTHERS RATE AND
THE COUNTRY-WIDE SUBSIDY RATE.—
‘‘(A) ALL-OTHERS RATE.—
‘‘(i) GENERAL
RULE.—For purposes of this sub-
section and section 703(d), the all-others rate shall
be an amount equal to the weighted average
countervailable subsidy rates established for exporters
and producers individually investigated, excluding any
zero and de minimis countervailable subsidy rates, and
any rates determined entirely under section 776.
‘‘(ii) EXCEPTION.—If the countervailable subsidy
rates established for all exporters and producers
individually investigated are zero or de minimis rates,
or are determined entirely under section 776, the
administering authority may use any reasonable
method to establish an all-others rate for exporters
and producers not individually investigated, including
averaging the weighted average countervailable sub-
sidy rates determined for the exporters and producers
individually investigated.
‘‘(B) COUNTRY-WIDE SUBSIDY RATE.—The administering
authority may calculate a single country-wide subsidy rate,
H. R. 5110—106
applicable to all exporters and producers, if the administer-
ing authority limits its examination pursuant to section
777A(e)(2)(B). The estimated country-wide rate determined
under section 703(d)(1)(A)(ii) or paragraph (1)(B)(i)(II) of
this subsection shall be based on industry-wide data regard-
ing the use of subsidies determined to be countervailable.’’.
(c) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 703(b)(2) is amended—
(A) by striking ‘‘subsection (b)(1)’’ and inserting ‘‘para-
graph (1)’’,
(B) by striking ‘‘subsection 702(b)(3)’’ and inserting
‘‘section 702(b)(3)’’,
(C) by striking ‘‘subsection 703(b)(1)’’ and inserting
‘‘paragraph (1)’’, and
(D) by striking ‘‘section 703(c)’’ and inserting ‘‘sub-
section (c) of this section’’.
(2) Section 703(e)(2) is amended by striking ‘‘subsection
(d)(1)’’ and inserting ‘‘subsection (d)(2)’’.
(3) Section 704(f)(2)(A) is amended—
(A) in clause (i), by striking ‘‘section 703(d)(1)’’ and
inserting ‘‘section 703(d)(2)’’; and
(B) in clause (iii), by striking ‘‘section 703(d)(1)’’ and
inserting ‘‘section 703(d)(1)(B)’’.
(4) Section 704(f)(2)(B) is amended—
(A) by striking ‘‘section 703(d)(1)’’ and inserting ‘‘section
703(d)(2)’’; and
(B) by striking ‘‘section 703(d)(2)’’ and inserting ‘‘section
703(d)(1)(B)’’.
(5) Section 704(h)(3) is amended—
(A) in subparagraph (A), by striking ‘‘section 703(d)(1)’’
and inserting ‘‘section 703(d)(2)’’; and
(B) in subparagraph (B), by striking ‘‘section 703(d)(2)’’
and inserting ‘‘section 703(d)(1)(B)’’.
(6) Section 704(i)(1)(A) is amended by striking ‘‘section
703(d)(1)’’ and inserting ‘‘section 703(d)(2)’’.
(7) Section 705(c)(2) is amended—
(A) in subparagraph (A), by striking ‘‘section 703(d)(1)’’
and inserting ‘‘section 703(d)(2)’’; and
(B) in subparagraph (B), by striking ‘‘section 703(d)(2)’’
and inserting ‘‘section 703(d)(1)(B)’’.
(8) Section 705(c)(3)(B) is amended by striking ‘‘section
703(d)(2)’’ and inserting ‘‘section 703(d)(1)(B)’’.
(9) Section 706(b)(1) is amended by striking ‘‘section
703(d)(1)’’ each place it appears and inserting ‘‘section
703(d)(2)’’.
(10) Section 707(a) is amended—
(A) by striking ‘‘section 703(d)(2)’’ and inserting ‘‘section
703(d)(1)(B)’’, and
(B) by striking ‘‘Section 703(d)(2)’’ in the heading and
inserting ‘‘Section 703(d)(1)(B)’’.
(11) Section 708 is amended by striking ‘‘section 703(d)(2)’’
and inserting ‘‘section 703(d)(1)(B)’’.
SEC. 265. ASSESSMENT OF COUNTERVAILING DUTY.
Section 706(a) (19 U.S.C. 1671e(a)) is amended—
(1) by striking paragraph (2); and
H. R. 5110—107
(2) by redesignating paragraphs (3) and (4) as paragraphs
(2) and (3), respectively.
SEC. 266. NATURE OF COUNTERVAILABLE SUBSIDY.
Section 771(7)(E)(i) (19 U.S.C. 1677(7)(E)(i)) is amended to read
as follows:
‘‘(i) NATURE
OF
COUNTERVAILABLE
SUBSIDY.—In
determining whether there is a threat of material
injury, the Commission shall consider information pro-
vided to it by the administering authority regarding
the nature of the countervailable subsidy granted by
a 
foreign 
country 
(particularly 
whether 
the
countervailable subsidy is a subsidy described in Arti-
cle 3 or 6.1 of the Subsidies Agreement) and the effects
likely to be caused by the countervailable subsidy.’’.
SEC. 267. DEFINITION 
OF 
DEVELOPING 
AND 
LEAST-DEVELOPED
COUNTRY.
Section 771 (19 U.S.C. 1677), as amended, is amended by
adding at the end the following new paragraph:
‘‘(36) DEVELOPING AND LEAST DEVELOPED COUNTRY.—
‘‘(A) DEVELOPING
COUNTRY.—The term ‘developing
country’ means a country designated as a developing coun-
try by the Trade Representative.
‘‘(B) LEAST
DEVELOPED
COUNTRY.—The term ‘least
developed country’ means a country which the Trade Rep-
resentative determines is—
‘‘(i) a country referred to as a least developed coun-
try within the meaning of paragraph (a) of Annex
VII to the Subsidies Agreement, or
‘‘(ii) any other country listed in Annex VII to the
Subsidies Agreement, but only if the country has a
per capita gross national product of less than $1,000
per annum as measured by the most recent data avail-
able from the World Bank.
‘‘(C) PUBLICATION OF LIST.—The Trade Representative
shall publish in the Federal Register, and update as nec-
essary, a list of—
‘‘(i) developing countries that have eliminated their
export subsidies on an expedited basis within the
meaning of Article 27.11 of the Subsidies Agreement,
and
‘‘(ii) countries determined by the Trade Represent-
ative to be least developed or developing countries.
‘‘(D) FACTORS TO CONSIDER.—In determining whether
a country is a developing country under subparagraph (A),
the Trade Representative shall consider such economic,
trade, and other factors which the Trade Representative
considers appropriate, including the level of economic devel-
opment of such country (the assessment of which shall
include a review of the country’s per capita gross national
product) and the country’s share of world trade.
‘‘(E) LIMITATION
ON
DESIGNATION.—A determination
that a country is a developing or least developed country
pursuant to this paragraph shall be for purposes of this
title only and shall not affect the determination of a coun-
try’s status as a developing or least developed country
with respect to any other law.’’.
H. R. 5110—108
SEC. 268. UPSTREAM SUBSIDIES.
Section 771A(a) (19 U.S.C. 1677–1(a)) is amended—
(1) by striking the matter preceding paragraph (1) and
paragraph (1) and inserting the following:
‘‘(a) DEFINITION.—The term ‘upstream subsidy’ means any
countervailable subsidy, other than an export subsidy, that—
‘‘(1) is paid or bestowed by an authority (as defined in
section 771(5)) with respect to a product (hereafter in this
section referred to as an ‘input product’) that is used in the
same country as the authority in the manufacture or production
of merchandise which is the subject of a countervailing duty
proceeding;’’, and
(2) in the flush sentence at the end thereof, by inserting
‘‘countervailable’’ before ‘‘subsidy’’.
SEC. 269. SAMPLING 
AND 
AVERAGING; 
DETERMINATION 
OF
COUNTERVAILABLE SUBSIDY RATE.
(a) IN GENERAL.—Section 777A (19 U.S.C. 1677f–1), as amended
by section 229, is amended by adding at the end the following
new subsection:
‘‘(e) DETERMINATION OF COUNTERVAILABLE SUBSIDY RATE.—
‘‘(1) GENERAL RULE.—In determining countervailable sub-
sidy rates under section 703(d), 705(c), or 751(a), the admin-
istering authority shall determine an individual countervailable
subsidy rate for each known exporter or producer of the subject
merchandise.
‘‘(2) EXCEPTION.—If the administering authority determines
that it is not practicable to determine individual countervailable
subsidy rates under paragraph (1) because of the large number
of exporters or producers involved in the investigation or review,
the administering authority may—
‘‘(A) determine individual countervailable subsidy rates
for a reasonable number of exporters or producers by limit-
ing its examination to—
‘‘(i) a sample of exporters or producers that the
administering authority determines is statistically
valid based on the information available to the admin-
istering authority at the time of selection, or
‘‘(ii) exporters and producers accounting for the
largest volume of the subject merchandise from the
exporting country that the administering authority
determines can be reasonably examined; or
‘‘(B) determine a single country-wide subsidy rate to
be applied to all exporters and producers.
The individual countervailable subsidy rates determined under
subparagraph (A) shall be used to determine the all-others
rate under section 705(c)(5).’’.
(b) CONFORMING AMENDMENTS.—
(1) The heading for section 777A, as amended by section
229, is amended by inserting ‘‘AND COUNTERVAILABLE SUBSIDY
RATE’’ after ‘‘MARGIN’’.
(2) The table of contents for title VII is amended by insert-
ing ‘‘; determination of weighted average dumping margin and
countervailable subsidy rate’’ after ‘‘averaging’’ in the item
relating to section 777A.
H. R. 5110—109
SEC. 270. CONFORMING AMENDMENTS.
(a) COUNTERVAILABLE SUBSIDY.—
(1) Except as provided in paragraph (2), each of the follow-
ing sections is amended by striking ‘‘subsidy’’ each place it
appears in the text and in the heading and inserting
‘‘countervailable subsidy’’:
(A) Section 702(e) (19 U.S.C. 1671a(e)).
(B) Section 703(b)(1) (19 U.S.C. 1671b(b)(1)).
(C) Section 703(b)(2) (19 U.S.C. 1671b(b)(2)).
(D) 
Section 
703(c)(1)(B)(i)(I) 
(19 
U.S.C.
1671b(c)(1)(B)(i)(I)).
(E) Section 704 (19 U.S.C. 1671c).
(F) Section 705(a)(1) (19 U.S.C. 1671d(a)(1)).
(G) Section 705(a)(2) (19 U.S.C. 1671d(a)(2)).
(H) Section 706(a)(1) (19 U.S.C. 1671e(a)(1)).
(I) Section 761 (19 U.S.C. 1676).
(J) Section 762 (19 U.S.C. 1676a).
(K) Section 771A(b) (19 U.S.C. 1677–1(b)).
(L) Section 771A(c) (19 U.S.C. 1677–1(c)).
(M) 
Section 
780(d)(1)(A)(ii) 
(19 
U.S.C.
1677i(d)(1)(A)(ii)).
(N) 
Section 
516A(a)(2)(B)(iv) 
(19 
U.S.C.
1516a(a)(2)(B)(iv)).
(2)(A) The heading for section 704(b) (19 U.S.C. 1671c(b))
is 
amended 
by 
striking 
‘‘Subsidy’’ 
and 
inserting
‘‘Countervailable Subsidy’’.
(B) The heading for section 771(A)(c) (19 U.S.C. 1677–
1(c)) 
is 
amended 
by 
striking 
‘‘Subsidy’’ 
and 
inserting
‘‘Countervailable Subsidy’’.
(b) COUNTERVAILABLE SUBSIDIES.—
(1) Except as provided in paragraph (2), each of the follow-
ing sections is amended by striking ‘‘subsidies’’ each place it
appears in the text and in the heading and inserting
‘‘countervailable subsidies’’:
(A) Section 701(d) (19 U.S.C. 1671(d)).
(B) 
Section 
703(c)(1)(B)(i)(III) 
(19 
U.S.C.
1671b(c)(1)(B)(i)(III)).
(C) Section 761 (19 U.S.C. 1676).
(D) Section 771B (19 U.S.C. 1677–2).
(2) The heading for section 761(a) and section 771B (19
U.S.C. 1676(a) and 1677–2) are each amended by striking ‘‘Sub-
sidies’’ and inserting ‘‘Countervailable Subsidies’’.
(c) OTHER CONFORMING AMENDMENTS.—
(1) The heading for section 704(b) (19 U.S.C. 1671c(b))
is amended by striking ‘‘Subsidized Merchandise’’ and inserting
‘‘Subject Merchandise’’.
(2) Subparagraphs (C) and (D) of section 771(4) (19 U.S.C.
1677(4) (C) and (D)) are amended by striking ‘‘subsidized or’’
each place it appears and inserting ‘‘or imports of merchandise
benefiting from a countervailable subsidy’’ after ‘‘imports’’.
(3) Section 771A (19 U.S.C. 1677–1), as amended, is
amended in subsection (c), by striking ‘‘subsidization’’ and
inserting ‘‘the countervailable subsidy’’.
(4) The table of contents for title VII is amended—
(A) in the item relating to section 771B, by inserting
‘‘countervailable’’ before ‘‘subsidies’’, and
H. R. 5110—110
(B) in the item relating to section 775, by striking
‘‘Subsidy’’ and inserting ‘‘Countervailable subsidy’’.
(d) SUBSIDIES AGREEMENT.—Section 702(e) (19 U.S.C. 1671a(e))
is amended by striking ‘‘Agreement’’ and inserting ‘‘Subsidies
Agreement’’.
(e) SUBSIDIES AGREEMENT AND AGREEMENT ON AGRICULTURE.—
Section 771(8) (19 U.S.C. 1677(8)) is amended to read as follows:
‘‘(8) SUBSIDIES AGREEMENT; AGREEMENT ON AGRICULTURE.—
‘‘(A) SUBSIDIES
AGREEMENT.—The term ‘Subsidies
Agreement’ means the Agreement on Subsidies and
Countervailing Measures referred to in section 101(d)(12)
of the Uruguay Round Agreements Act.
‘‘(B) AGREEMENT ON AGRICULTURE.—The term ‘Agree-
ment on Agriculture’ means the Agreement on Agriculture
referred to in section 101(d)(2) of the Uruguay Round
Agreements Act.’’.
PART 3—SECTION 303 INJURY
INVESTIGATIONS
SEC. 271. SPECIAL RULES FOR INJURY INVESTIGATIONS FOR CER-
TAIN SECTION 303 COUNTERVAILING DUTY ORDERS AND
INVESTIGATIONS.
(a) IN GENERAL.—Chapter 1 of subtitle C of title VII, as
amended, is amended by inserting after section 752 the following
new section:
‘‘SEC. 753. SPECIAL RULES FOR INJURY INVESTIGATIONS FOR CER-
TAIN SECTION 303 COUNTERVAILING DUTY ORDERS AND
INVESTIGATIONS.
‘‘(a) IN GENERAL.—
‘‘(1) INVESTIGATION BY THE COMMISSION UPON REQUEST.—
In the case of a countervailing duty order described in para-
graph (2), which—
‘‘(A) applies to merchandise that is the product of a
Subsidies Agreement country, and
‘‘(B)(i) is in effect on the date on which such country
becomes a Subsidies Agreement country, or
‘‘(ii) is issued on a date that is after the date described
in clause (i) pursuant to a court order in an action brought
under section 516A,
the Commission, upon receipt of a request from an interested
party described in section 771(9) (C), (D), (E), (F), or (G) for
an injury investigation with respect to such order, shall initiate
an investigation and shall determine whether an industry in
the United States is likely to be materially injured by reason
of imports of the subject merchandise if the order is revoked.
‘‘(2) DESCRIPTION
OF
COUNTERVAILING
DUTY
ORDERS.—A
countervailing duty order described in this paragraph is an
order issued under section 303 with respect to which the
requirement of an affirmative determination of material injury
under section 303(a)(2) was not applicable at the time such
order was issued.
‘‘(3) REQUIREMENTS
OF
REQUEST
FOR
INVESTIGATION.—A
request for an investigation under this subsection shall be
submitted—
H. R. 5110—111
‘‘(A) in the case of an order described in paragraph
(1)(B)(i), within 6 months after the date on which the
country described in paragraph (1)(A) becomes a Subsidies
Agreement country, or
‘‘(B) in the case of an order described in paragraph
(1)(B)(ii), within 6 months after the date the order is issued.
‘‘(4) SUSPENSION OF LIQUIDATION.—With respect to entries
of subject merchandise made on or after—
‘‘(A) in the case of an order described in paragraph
(1)(B)(i), the date on which the country described in para-
graph (1)(A) becomes a Subsidies Agreement country, or
‘‘(B) in the case of an order described in paragraph
(1)(B)(ii), the date on which the order is issued,
liquidation shall be suspended at the cash deposit rate in
effect on the date described in subparagraph (A) or (B) (which-
ever is applicable).
‘‘(b) INVESTIGATION PROCEDURE AND SCHEDULE.—
‘‘(1) COMMISSION PROCEDURE.—
‘‘(A) IN
GENERAL.—Except as otherwise provided in
this section, the provisions of this title regarding evidence
in and procedures for investigations conducted under sub-
title A shall apply to investigations conducted by the
Commission under this section.
‘‘(B) TIME
FOR
COMMISSION
DETERMINATION.—Except
as otherwise provided in subparagraph (C), the Commission
shall issue its determination under subsection (a)(1), to
the extent possible, not later than 1 year after the date
on which the investigation is initiated under this section.
‘‘(C) SPECIAL RULE TO PERMIT ADMINISTRATIVE FLEXIBIL-
ITY.—In the case of requests for investigations received
under this section within 1 year after the date on which
the WTO Agreement enters into force with respect to the
United States, the Commission may, after consulting with
the administering authority, initiate its investigations in
a manner that results in determinations being made in
all such investigations during the 4-year period beginning
on such date.
‘‘(2) NET COUNTERVAILABLE SUBSIDY; NATURE OF SUBSIDY.—
‘‘(A) NET COUNTERVAILABLE SUBSIDY.—The administer-
ing authority shall provide to the Commission the net
countervailable subsidy that is likely to prevail if the order
which is the subject of the investigation is revoked. The
administering authority normally shall choose a net
countervailable subsidy that was determined under section
705 or subsection (a) or (b)(1) of section 751. If the Commis-
sion considers the magnitude of the net countervailable
subsidy in making its determination under this section,
the Commission shall use the net countervailable subsidy
provided by the administering authority.
‘‘(B) NATURE OF SUBSIDY.—The administering authority
shall inform the Commission of, and the Commission, in
making its determination under this section, shall consider,
the nature of the countervailable subsidy and whether
the countervailable subsidy is a subsidy described in Article
3 or Article 6.1 of the Subsidies Agreement.
‘‘(3) EFFECT OF COMMISSION DETERMINATION.—
H. R. 5110—112
‘‘(A) AFFIRMATIVE DETERMINATION.—Upon being noti-
fied by the Commission that it has made an affirmative
determination under subsection (a)(1)—
‘‘(i) the administering authority shall order the
termination of the suspension of liquidation required
pursuant to subsection (a)(4), and
‘‘(ii) the countervailing duty order shall remain
in effect until revoked, in whole or in part, under
section 751(d).
For purposes of section 751(c), a countervailing duty order
described in this section shall be treated as issued on
the date of publication of the Commission’s determination
under this subsection.
‘‘(B) NEGATIVE DETERMINATION.—
‘‘(i) IN
GENERAL.—Upon being notified by the
Commission that it has made a negative determination
under subsection (a)(1), the administering authority
shall revoke the countervailing duty order, and shall
refund, with interest, any estimated countervailing
duties collected during the period liquidation was sus-
pended pursuant to subsection (a)(4).
‘‘(ii) LIMITATION ON NEGATIVE DETERMINATION.—
A determination by the Commission that revocation
of the order is not likely to result in material injury
to an industry by reason of imports of the subject
merchandise shall not be based, in whole or in part,
on any export taxes, duties, or other charges levied
on the export of the subject merchandise to the United
States that were specifically intended to offset the
countervailable subsidy received.
‘‘(4) COUNTERVAILING DUTY ORDERS WITH RESPECT TO WHICH
NO
REQUEST
FOR
INJURY
INVESTIGATION
IS
MADE.—If, with
respect to a countervailing duty order described in subsection
(a), a request for an investigation is not made within the
time required by subsection (a)(3), the Commission shall notify
the administering authority that a negative determination has
been made under subsection (a) and the provisions of paragraph
(3)(B) shall apply with respect to the order.
‘‘(c) PENDING AND SUSPENDED COUNTERVAILING DUTY INVES-
TIGATIONS.—If, on the date on which a country becomes a Subsidies
Agreement country, there is a countervailing duty investigation
in progress or suspended under section 303 that applies to merchan-
dise which is a product of that country and with respect to which
the requirement of an affirmative determination of material injury
under section 303(a)(2) was not applicable at the time the investiga-
tion was initiated, the Commission shall—
‘‘(1) in the case of an investigation in progress, make a
final determination under section 705(b) within 75 days after
the date of an affirmative final determination, if any, by the
administering authority,
‘‘(2) in the case of a suspended investigation to which
section 704(i)(1)(B) applies, make a final determination under
section 705(b) within 120 days after receiving notice from the
administering authority of the resumption of the investigation
pursuant to section 704(i), or within 45 days after the date
of an affirmative final determination, if any, by the administer-
ing authority, whichever is later, or
H. R. 5110—113
‘‘(3) in the case of a suspended investigation to which
section 704(i)(1)(C) applies, treat the countervailing duty order
issued pursuant to such section as if it were—
‘‘(A) an order issued under subsection (a)(1)(B)(ii) for
purposes of subsection (a)(3); and
‘‘(B) an order issued under subsection (a)(1)(B)(i) for
purposes of subsection (a)(4).
‘‘(d) PUBLICATION IN FEDERAL REGISTER.—The administering
authority or the Commission, as the case may be, shall publish
in the Federal Register a notice of the initiation of any investigation,
and a notice of any determination or revocation, made pursuant
to this section.
‘‘(e) REQUEST FOR SIMULTANEOUS EXPEDITED REVIEW UNDER
SECTION 751(c).—
‘‘(1) GENERAL RULE.—
‘‘(A) REQUESTS FOR REVIEWS.—Notwithstanding section
751(c)(6)(A) and except as provided in subparagraph (B),
an interested party may request a review of an order
under section 751(c) at the same time the party requests
an investigation under subsection (a), if the order involves
the same or comparable subject merchandise. Upon receipt
of such request, the administering authority, after consult-
ing with the Commission, shall initiate a review of the
order under section 751(c). The Commission shall combine
such review with the investigation under this section.
‘‘(B) EXCEPTION.—If the administering authority deter-
mines that the interested party who requested an investiga-
tion under this section is a related party or an importer
within the meaning of section 771(4)(B), the administering
authority may decline a request by such party to initiate
a review of an order under section 751(c) which involves
the same or comparable subject merchandise.
‘‘(2) CUMULATION.—If a review under section 751(c) is initi-
ated under paragraph (1), such review shall be treated as
having been initiated on the same day as the investigation
under this section, and the Commission may, in accordance
with section 771(7)(G), cumulatively assess the volume and
effect of imports of the subject merchandise from all countries
with respect to which such investigations are treated as initi-
ated on the same day.
‘‘(3) TIME
AND
PROCEDURE
FOR
COMMISSION
DETERMINA-
TION.—The Commission shall render its determination in the
investigation conducted under this section at the same time
as the Commission’s determination is made in the review under
section 751(c) that is initiated pursuant to this subsection.
The Commission shall in all other respects apply the procedures
and standards set forth in section 751(c) to such section 751(c)
reviews.’’.
(b) REVIEW OF DETERMINATIONS.—Section 516A(a)(2) (19 U.S.C.
1516a(a)(2)) is amended—
(1) in subparagraph (A)(i)(I), by striking ‘‘or (v)’’ and insert-
ing ‘‘(v), or (viii)’’, and
(2) in subparagraph (B), by adding at the end the following:
‘‘(viii) A determination by the Commission under
section 753(a)(1).’’.
H. R. 5110—114
(c) CONFORMING AMENDMENT.—The table of contents for title
VII, as amended, is amended by inserting after the item relating
to section 752 the following new item:
‘‘Sec. 753. Special rules for injury investigations for certain section 303 countervail-
ing duty orders and investigations.’’.
PART 4—ENFORCEMENT OF UNITED STATES
RIGHTS UNDER THE SUBSIDIES AGREEMENT
SEC. 281. SUBSIDIES ENFORCEMENT.
(a) ASSISTANCE
REGARDING
MULTILATERAL
SUBSIDY
REM-
EDIES.—The administering authority shall provide information to
the public upon request, and, to the extent feasible, assistance
and advice to interested parties concerning—
(1) remedies and benefits available under relevant provi-
sions of the Subsidies Agreement, and
(2) the procedures relating to such remedies and benefits.
(b) PROHIBITED SUBSIDIES.—
(1) NOTIFICATION
OF
TRADE
REPRESENTATIVE.—If the
administering authority determines pursuant to title VII of
the Tariff Act of 1930 that a class or kind of merchandise
is benefiting from a subsidy which is prohibited under Article
3 of the Subsidies Agreement, the administering authority shall
notify the Trade Representative and shall provide the Trade
Representative with the information upon which the admin-
istering authority based its determination.
(2) REQUEST BY INTERESTED PARTY REGARDING PROHIBITED
SUBSIDY.—An interested party may request that the administer-
ing authority determine if there is reason to believe that mer-
chandise produced in a WTO member country is benefiting
from a subsidy which is prohibited under Article 3 of the
Subsidies Agreement. The request shall contain such informa-
tion as the administering authority may require to support
the allegations contained in the request. If the administering
authority, after analyzing the request and other information
reasonably available to the administering authority, determines
that there is reason to believe that such merchandise is benefit-
ing from a subsidy which is prohibited under Article 3 of
the Subsidies Agreement, the administering authority shall
so notify the Trade Representative, and shall include supporting
information with the notification.
(c) SUBSIDIES ACTIONABLE UNDER THE AGREEMENT.—
(1) IN GENERAL.—If the administering authority determines
pursuant to title VII of the Tariff Act of 1930 that a class
or kind of merchandise is benefiting from a subsidy described
in Article 6.1 of the Subsidies Agreement, the administering
authority shall notify the Trade Representative, and shall pro-
vide the Trade Representative with the information upon which
the administering authority based its determination.
(2) REQUEST
BY
INTERESTED
PARTY
REGARDING
ADVERSE
EFFECTS.—An interested party may request the administering
authority to determine if there is reason to believe that a
subsidy which is actionable under the Subsidies Agreement
is causing adverse effects. The request shall contain such
information as the administering authority may require to sup-
port the allegations contained in the request. At the request
of the administering authority, the Commission shall assist
H. R. 5110—115
the administering authority in analyzing the information
pertaining to the existence of such adverse effects. If the admin-
istering authority, after analyzing the request and other
information reasonably available to the administering author-
ity, determines that there is reason to believe that a subsidy
which is actionable under the Subsidies Agreement is causing
adverse effects, the administering authority shall so notify the
Trade Representative, and shall include supporting information
with the notification.
(d) INITIATION OF SECTION 301 INVESTIGATION.—On the basis
of the notification and information provided by the administering
authority pursuant to subsection (b) or (c), such other information
as the Trade Representative may have or obtain, and where
applicable, after consultation with an interested party referred to
in subsection (b)(2) or (c)(2), the Trade Representative shall, unless
such interested party objects, determine as expeditiously as possible,
in accordance with the procedures in section 302(b)(1) of the Trade
Act of 1974 (19 U.S.C. 2412(b)(1)), whether to initiate an investiga-
tion pursuant to title III of that Act (19 U.S.C. 2411 et seq.).
At the request of the Trade Representative, the administering
authority and the Commission shall assist the Trade Representative
in an investigation initiated pursuant to this subsection.
(e) NONACTIONABLE SUBSIDIES.—
(1) COMPLIANCE
WITH
ARTICLE
OF
THE
SUBSIDIES
AGREEMENT.—
(A) MONITORING.—In order to monitor whether a sub-
sidy meets the conditions and criteria described in Article
8.2 of the Subsidies Agreement and is nonactionable, the
Trade Representative shall provide the administering
authority on a timely basis with any information submitted
or report made pursuant to Article 8.3 or 8.4 of the Sub-
sidies Agreement regarding a notified subsidy program.
The administering authority shall review such information
and reports, and where appropriate, shall recommend to
the Trade Representative that the Trade Representative
seek pursuant to Article 8.3 or 8.4 of the Subsidies Agree-
ment additional information regarding the notified subsidy
program or a subsidy granted pursuant to the notified
subsidy program. If the administering authority has reason
to believe that a violation of Article 8 of the Subsidies
Agreement exists, the administering authority shall so
notify the Trade Representative, and shall include support-
ing information with the notification.
(B) REQUEST BY INTERESTED PARTY REGARDING VIOLA-
TION OF ARTICLE 8.—An interested party may request the
administering authority to determine if there is reason
to believe that a violation of Article 8 of the Subsidies
Agreement exists. The request shall contain such informa-
tion as the administering authority may require to support
the allegations contained in the request. If the administer-
ing authority, after analyzing the request and other
information reasonably available to the administering
authority, determines that additional information is
needed, the administering authority shall recommend to
the Trade Representative that the Trade Representative
seek, pursuant to Article 8.3 or 8.4 of the Subsidies Agree-
ment, additional information regarding the particular noti-
H. R. 5110—116
fied subsidy program or a subsidy granted pursuant to
the notified subsidy program. If the administering author-
ity determines that there is reason to believe that a viola-
tion of Article 8 of the Subsidies Agreement exists, the
administering authority shall so notify the Trade Rep-
resentative, and shall include supporting information with
the notification.
(C) ACTION BY TRADE REPRESENTATIVE.—
(i) If the Trade Representative, on the basis of
the notification and information provided by the admin-
istering authority pursuant to subparagraph (A) or
(B), and such other information as the Trade Rep-
resentative may have or obtain, and after consulting
with the interested party referred to in subparagraph
(B) and appropriate domestic industries, determines
that there is reason to believe that a violation of Article
8 of the Subsidies Agreement exists, the Trade Rep-
resentative shall invoke the procedures of Article 8.4
or 8.5 of the Subsidies Agreement.
(ii) For purposes of clause (i), the Trade Represent-
ative shall determine that there is reason to believe
that a violation of Article 8 exists in any case in
which the Trade Representative determines that a noti-
fied subsidy program or a subsidy granted pursuant
to a notified subsidy program does not satisfy the
conditions and criteria required for a nonactionable
subsidy program under this Act, the Subsidies Agree-
ment, and the statement of administrative action
approved under section 101(a).
(D) NOTIFICATION OF ADMINISTERING AUTHORITY.—The
Trade Representative shall notify the administering author-
ity whenever a violation of Article 8 of the Subsidies Agree-
ment has been found to exist pursuant to Article 8.4 or
8.5 of that Agreement.
(2) SERIOUS ADVERSE EFFECTS.—
(A) REQUEST
BY
INTERESTED
PARTY.—An interested
party may request the administering authority to deter-
mine if there is reason to believe that serious adverse
effects resulting from a program referred to in Article 8.2
of the Subsidies Agreement exist. The request shall contain
such information as the administering authority may
require to support the allegations contained in the request.
(B) ACTION BY ADMINISTERING AUTHORITY.—Within 90
days after receipt of the request described in subparagraph
(A), the administering authority, after analyzing the
request and other information reasonably available to the
administering authority, shall determine if there is reason
to believe that serious adverse effects resulting from a
program referred to in Article 8.2 of the Subsidies Agree-
ment exist. If the determination of the administering
authority is affirmative, it shall so notify the Trade Rep-
resentative and shall include supporting information with
the notification. The Commission shall assist the admin-
istering authority in analyzing the information pertaining
to the existence of such serious adverse effects if the admin-
istering authority requests the Commission’s assistance.
If the subsidy program that is alleged to result in serious
H. R. 5110—117
adverse effects has been the subject of a countervailing
duty investigation or review under subtitle A or C of title
VII of the Tariff Act of 1930, the administering authority
shall take into account the determinations made by the
administering authority and the Commission in such inves-
tigation or review and the administering authority shall
complete its analysis as expeditiously as possible.
(C) ACTION
BY
TRADE
REPRESENTATIVE.—The Trade
Representative, on the basis of the notification and informa-
tion provided by the administering authority pursuant to
subparagraph (B), and such other information as the Trade
Representative may have or obtain, shall determine as
expeditiously as possible, but not later than 30 days after
receipt of the notification provided by the administering
authority, if there is reason to believe that serious adverse
effects exist resulting from the subsidy program which
is the subject of the administering authority’s notification.
The Trade Representative shall make an affirmative deter-
mination regarding the existence of such serious adverse
effects unless the Trade Representative finds that the
notification of the administering authority is not supported
by the facts.
(D) CONSULTATIONS.—If the Trade Representative
determines that there is reason to believe that serious
adverse effects resulting from the subsidy program exist,
the Trade Representative, unless the interested party
referred to in subparagraph (A) objects, shall invoke the
procedures of Article 9 of the Subsidies Agreement, and
shall request consultations pursuant to Article 9.2 of the
Subsidies Agreement with respect to such serious adverse
effects. If such consultations have not resulted in a mutu-
ally acceptable solution within 60 days after the request
is made for such consultations, the Trade Representative
shall refer the matter to the Subsidies Committee pursuant
to Article 9.3 of the Subsidies Agreement.
(E) DETERMINATION BY SUBSIDIES COMMITTEE.—If the
Trade Representative determines that—
(i) the Subsidies Committee has been prevented
from making an affirmative determination regarding
the existence of serious adverse effects under Article
9 of the Subsidies Agreement by reason of the refusal
of the WTO member country with respect to which
the consultations have been invoked to join in an
affirmative consensus—
(I) that such serious adverse effects exist, or
(II) regarding a recommendation to such WTO
member country to modify the subsidy program
in such a way as to remove the serious adverse
effects, or
(ii) the Subsidies Committee has not presented
its conclusions regarding the existence of such serious
adverse effects within 120 days after the date the
matter was referred to it, as required by Article 9.4
of the Subsidies Agreement,
the Trade Representative shall, within 30 days after such
determination, make a determination under section
304(a)(1) of the Trade Act of 1974 (19 U.S.C. 2414(a)(1))
H. R. 5110—118
regarding what action to take under section 301(a)(1)(A)
of that Act.
(F) NONCOMPLIANCE WITH COMMITTEE RECOMMENDA-
TION.—In the event that the Subsidies Committee makes
a recommendation under Article 9.4 of the Subsidies Agree-
ment and the WTO member country with respect to which
such recommendation is made does not comply with such
recommendation within 6 months after the date of the
recommendation, the Trade Representative shall make a
determination under section 304(a)(1) of the Trade Act
of 1974 (19 U.S.C. 2414(a)(1)) regarding what action to
take under section 301(a) of that Act.
(f) NOTIFICATION, CONSULTATION, AND PUBLICATION.—
(1) NOTIFICATION OF CONGRESS.—The Trade Representative
shall submit promptly to the Committee on Ways and Means
of the House of Representatives, the Committee on Finance
of the Senate, and other appropriate committees of the Congress
any information submitted or report made pursuant to Article
8.3 or 8.4 of the Subsidies Agreement regarding a notified
subsidy program.
(2) PUBLICATION IN THE FEDERAL REGISTER.—The admin-
istering authority shall publish regularly in the Federal Reg-
ister a summary notice of any information submitted or report
made pursuant to Article 8.3 or 8.4 of the Subsidies Agreement
regarding notified subsidy programs.
(3) CONSULTATIONS WITH CONGRESS AND PRIVATE SECTOR.—
The Trade Representative and the administering authority
promptly shall consult with the committees referred to in para-
graph (1), and with interested representatives of the private
sector, regarding all information submitted or reports made
pursuant to Article 8.3 or 8.4 of the Subsidies Agreement
regarding a notified subsidy program.
(4) ANNUAL REPORT.—Not later than February 1 of each
year beginning in 1996, the Trade Representative and the
administering authority shall issue a joint report to the Con-
gress detailing—
(A) the subsidies practices of major trading partners
of the United States, including subsidies that are prohib-
ited, are causing serious prejudice, or are nonactionable,
under the Subsidies Agreement, and
(B) the monitoring and enforcement activities of the
Trade Representative and the administering authority dur-
ing the preceding calendar year which relate to subsidies
practices.
(g) COOPERATION OF OTHER AGENCIES.—All agencies, depart-
ments, and independent agencies of the Federal Government shall
cooperate fully with one another in carrying out the provisions
of this section, and, upon the request of the administering authority,
shall furnish to the administering authority all records, papers,
and information in their possession which relate to the requirements
of this section.
(h) DEFINITIONS.—For purposes of this section:
(1) ADVERSE EFFECTS.—The term ‘‘adverse effects’’ has the
meaning given that term in Articles 5(a) and 5(c) of the Sub-
sidies Agreement.
H. R. 5110—119
(2) ADMINISTERING AUTHORITY.—The term ‘‘administering
authority’’ has the meaning given that term in section 771(1)
of the Tariff Act of 1930 (19 U.S.C. 1677(1)).
(3) COMMISSION.—The term ‘‘Commission’’ means the
United States International Trade Commission.
(4) INTERESTED PARTY.—The term ‘‘interested party’’ means
a party described in subparagraph (C), (D), (E), (F), or (G)
of section 771(9) of the Tariff Act of 1930 (19 U.S.C. 1677(9)
(A), (C), (D), (E), (F), or (G)).
(5) NONACTIONABLE
SUBSIDY.—The term ‘‘nonactionable
subsidy’’ means a subsidy described in Article 8.1(b) of the
Subsidies Agreement.
(6) NOTIFIED SUBSIDY PROGRAM.—The term ‘‘notified sub-
sidy program’’ means a subsidy program which has been noti-
fied pursuant to Article 8.3 of the Subsidies Agreement.
(7) SERIOUS ADVERSE EFFECTS.—The term ‘‘serious adverse
effects’’ has the meaning given that term in Article 9.1 of
the Subsidies Agreement.
(8) SUBSIDIES
AGREEMENT.—The term ‘‘Subsidies Agree-
ment’’ means the Agreement on Subsidies and Countervailing
Measures described in section 771(8) of the Tariff Act of 1930
(19 U.S.C. 1677(8)).
(9) SUBSIDIES COMMITTEE.—The term ‘‘Subsidies Commit-
tee’’ means the committee established pursuant to Article 24
of the Subsidies Agreement.
(10) SUBSIDY.—The term ‘‘subsidy’’ has the meaning given
that term in Article 1 of the Subsidies Agreement.
(11) TRADE REPRESENTATIVE.—The term ‘‘Trade Represent-
ative’’ means the United States Trade Representative.
(12) VIOLATION OF ARTICLE 8.—The term ‘‘violation of Arti-
cle 8’’ means the failure of a notified subsidy program or an
individual subsidy granted pursuant to a notified subsidy pro-
gram to meet the applicable conditions and criteria described
in Article 8.2 of the Subsidies Agreement.
(i) TREATMENT OF PROPRIETARY INFORMATION.—Notwithstand-
ing any other provision of law, the administering authority may
provide the Trade Representative with a copy of proprietary
information submitted to, or obtained by, the administering author-
ity that the Trade Representative considers relevant in carrying
out its responsibilities under this part. The Trade Representative
shall protect from public disclosure proprietary information obtained
from the administering authority under this part.
SEC. 282. REVIEW OF SUBSIDIES AGREEMENT.
(a) GENERAL OBJECTIVES.—The general objectives of the United
States under this part are—
(1) to ensure that parts II and III of the Agreement on
Subsidies and Countervailing Measures referred to in section
101(d)(12) (hereafter in this section referred to as the ‘‘Subsidies
Agreement’’) are effective in disciplining the use of subsidies
and in remedying the adverse effects of subsidies, and
(2) to ensure that part IV of the Subsidies Agreement
does not undermine the benefits derived from any other part
of that Agreement.
(b) SPECIFIC OBJECTIVE.—The specific objective of the United
States under this part shall be to create a mechanism which will