I
107TH CONGRESS
1ST SESSION
H. R. 2770
To amend United States trade laws to provide more fairness to U.S. industry.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 2, 2001
Mr. KOLBE (for himself, Mr. MORAN of Virginia, and Mr. RAMSTAD) intro-
duced the following bill; which was referred to the Committee on Ways
and Means
A BILL
To amend United States trade laws to provide more fairness
to U.S. industry.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Transparency and
Fairness Trade Act of 2001’’.
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TITLE 
I—AMENDMENTS 
TO
TITLE VII OF THE TARIFF ACT
OF 1930
SEC. 101. FULL PARTICIPATION OF INDUSTRIAL USERS.
(a) Chapter 1 of subtitle C of title VII of the Tariff
Act of 1930, section 771(9), is amended by inserting after
subparagraph (G) the following:
‘‘(H) industrial users of the subject mer-
chandise or domestic like product or an associa-
tion a majority of whose members are industrial
users of the subject merchandise or domestic
like product.’’
(b) Section 771 of the Tariff Act of 1930, as amend-
ed (19 U.S.C. § 1677), is amended by adding the following
new paragraph:
‘‘(38) INDUSTRIAL USERS.—The term ‘indus-
trial users’ includes companies that consume the
subject merchandise or domestic like product in a
trade or business, or purchase and sell the subject
merchandise or the domestic like product at whole-
sale or retail.’’
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SEC. 102. TEMPORARY EXCEPTION TO ANTIDUMPING OR
COUNTERVAILING DUTY ORDER OR FINDING.
(a) IN GENERAL.—Chapter 1 of subtitle C of title
VII of the Tariff Act of 1930 (19 U.S.C. 1675) is amend-
ed by adding at the end the following new section:
‘‘SEC. 753. TEMPORARY EXCEPTION TO ANTIDUMPING OR
COUNTERVAILING DUTY ORDER OR FINDING.
‘‘(a) IN GENERAL.—
‘‘(1) APPLICATION.—If an application for relief
is filed under this section and the administering au-
thority determines that a lack of domestic avail-
ability exists with respect to a particular product
which is within the class or kind of merchandise that
is the subject of an investigation, an order under
this title or section 303, a finding under the Anti-
dumping Act, 1921, or a suspension agreement, the
administering authority shall not apply the order or
finding with respect to such particular product for
a specified quantity or for a period of not longer
than one year.
‘‘(2) LACK
OF
DOMESTIC
AVAILABILITY.—A
‘lack of domestic availability’ exists whenever—
‘‘(A) if the investigation, order, finding or
suspension agreement resulted from a petition,
a significant majority of the persons who filed
the petition on which the investigation, order,
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finding or suspension agreement is based, sup-
port approval of the relief requested, unless one
or more of the companies filing an objection
agree to supply the particular product in the
amount requested within the time needed; or
‘‘(B) there is no current domestic produc-
tion of the product, unless the administering
authority determines that this lack of current
domestic production of the particular product
was caused by unfairly traded subject merchan-
dise; or
‘‘(C) the domestic industry is not currently
able to provide the product in sufficient and
reasonably available commercial quantities of a
satisfactory quality,
unless the administering authority, after consulta-
tion with the Commission pursuant to subsection
(b)(4), determines that applying an allowance with
respect to the particular subject product will signifi-
cantly depress prices in the industry.
‘‘(3) FACTORS.—Where a significant majority
of the persons who filed the petition on which the in-
vestigation, order, finding or suspension agreement
is based support approval of the proposed relief, the
administering authority shall grant the relief re-
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quested, unless one or more of the companies filing
an objection agree to supply the particular product
in the amount requested and within the time speci-
fied. Where a significant majority of the persons
who filed the petition on which the investigation,
order, finding or suspension agreement is based have
not supported approval of the requested relief, the
administering authority may nevertheless approve
the relief if the administering authority determines
that there is lack of domestic availability in the
United States with respect to a product. In reaching
this determination, the administering authority shall
consider all relevant factors, including—
‘‘(A) whether there is current domestic
production of the particular product with re-
spect to which the temporary duty exception ap-
plication has been filed;
‘‘(B) to the extent information is available,
the recent levels of capacity utilization of do-
mestic facilities producing the particular prod-
uct;
‘‘(C) the quantity of the particular product
requested in the request for relief and the abil-
ity of domestic producers to supply the product
in such quantity;
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‘‘(D) the reasonableness of the specifica-
tions and quantity requested by the purchaser
or end-user of the product; and
‘‘(E) the time required to deliver the par-
ticular product to the purchaser or end-user
and the time in which the purchaser or end
user requires the particular product.
The administering authority shall take into account
any advice provided by the Commission under sub-
section (b)(4) of this section before making a deter-
mination under this subparagraph.
‘‘(b) PROCEDURE.—
‘‘(1) APPLICATION
REQUIREMENTS.—A pro-
ceeding under this section shall be initiated when-
ever a potentially affected party files an application
with the administering authority which alleges the
elements necessary for the temporary exception from
provisions of an antidumping or countervailing duty
order, finding or suspension agreement provided by
this section and which is accompanied by informa-
tion reasonably available to the applicant supporting
those allegations. These elements shall include the
following:
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‘‘(A) the quantity of the product or the
time-period requested in the application for re-
lief under this section;
‘‘(B) a detailed description of the product
that defines the requested scope of the applica-
tion, including technical characteristics and
uses of the merchandise, and its current U.S.
tariff classification number;
‘‘(C) if applicable, written consents from a
significant majority of petitioners to the action
on which the order or finding or suspension
agreement is based; and
‘‘(D) if written consents, as described in
subsection (C) are not provided, then applicants
must provide the following—
(i) a description of all technical speci-
fications, as well as an indication of how
long such specifications have been in ef-
fect;
(ii) description and documentation of
all reasonable efforts that applicants have
made to purchase the product from domes-
tic sources; and
(iii) to the extent information is
available, the recent levels of capacity utili-
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opportunity for potentially affected parties to com-
ment on any request for extension.
‘‘(6) REINSTATEMENT OF DUTIES.—An allow-
ance granted under this section may be revoked at
any time, after opportunity for potentially affected
parties to comment on the revocation, if the admin-
istering authority determines that there is insuffi-
cient basis for continuing the exception.
‘‘(c) DETERMINATION.—
‘‘(1) IN GENERAL.—In any case in which the
administering authority finds that a petition pursu-
ant to this section contains adequate information,
the administering authority shall determine, not
later than the day specified in paragraph (2)—
‘‘(A) if there is a lack of domestic avail-
ability in the United States with respect to the
product; and
‘‘(B) if the determination under subpara-
graph (A) is affirmative, the quantity of the
product, if any, that may be imported into the
United States without regard to the anti-
dumping or countervailing duty order that
would otherwise apply, or the relevant time-pe-
riod during which application of the order or
finding may be interrupted.
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‘‘(2) TIME
LIMIT
FOR
MAKING
TEMPORARY
DUTY
SUSPENSION
DETERMINATION.—The admin-
istering authority shall make a determination de-
scribed in paragraph (1) not later than—
‘‘(A) the 30th day after the date the peti-
tion is filed if—
‘‘(i) a significant majority of the peti-
tioners to the action on which the inves-
tigation, order, finding or suspension
agreement is based consent to the action;
or
‘‘(ii) the administering authority has
previously authorized relief and there has
been no evidence that the basis on which
relief was provided has changed; or
‘‘(B) the 75th day after the date the peti-
tion is filed if the Commission decides to pro-
vide written advice pursuant to subsection
(b)(4); or
‘‘(C) the 60th day after the date the peti-
tion is filed if subparagraphs (A) & (B) do not
apply, except that where two or more temporary
duty exception application have been filed by
different parties on the same product, the dead-
line for issuing a temporary duty exception de-
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termination will be the latest deadline for all of
the petitions, to allow the administering author-
ity to consolidate the actions.
‘‘(3) ALLOWANCE UPON FAILURE OF A DOMES-
TIC
PRODUCER
TO
SUPPLY.—If the administering
authority determines that there is no lack of domes-
tic availability because a producer in the United
States certifies that it is willing and able to supply
the product in the quantity requested at the speci-
fications, and delivery date requested, and the pro-
ducer fails to supply the product as promised, the
administering authority shall, within 3 days of being
notified of the failure, grant an allowance for the
quantity the domestic producer failed to supply.
‘‘(d) NOTICE.—The administering authority shall
publish in the Federal Register notice of each determina-
tion made under this section and the reasons therefor.
‘‘(e) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section—
‘‘(1) POTENTIALLY
AFFECTED
PARTY.—The
term ‘potentially affected party’ means—
‘‘(A) any person who filed a petition pursu-
ant to which the order or finding was issued;
‘‘(B) a producer or consumer of the prod-
uct in the United States; and
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‘‘(C) a United States importer of the prod-
uct or a distributor of the product in the
United States.
‘‘(2) PRODUCT.—The term ‘product’ means the
product for which an allowance is requested under
this section, or material which possesses the same
physical characteristics and performance standards
and which can be used for the same application
without imposing any significant alteration costs for
the consumer.
‘‘(3) SIGNIFICANT MAJORITY.—The term ‘sig-
nificant majority’ means that of the petitioners to
the original action on which the investigation, order,
finding or suspension agreement was based, those
supporting the application account for more than
75% of production of the domestic like product by
those petitioners who have expressed an opinion on
the proposed action. In determining petitioners’ sup-
port, the administering authority shall disregard the
position of petitioners who oppose the application
where they have failed to provide reasons for their
opposition.
‘‘(4) REASONABLE SPECIFICATIONS.—The term
‘reasonable specifications’ means specifications that
are developed in the ordinary course of business.
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The administering authority shall apply a rebuttable
presumption that specifications are reasonable when-
ever such specifications have been in use—
‘‘(A) prior to the filing of an antidumping
or countervailing duty petition; or
‘‘(B) more than two years prior to the re-
quest for relief,
‘‘(5) NO CURRENT DOMESTIC PRODUCTION.—
The term ‘no current domestic production’ means—
‘‘(A) that no U.S. producers have produced
a product meeting the reasonable specifications
within the last six months, or
‘‘(B) no U.S. producers have either quali-
fied to supply products meeting such specifica-
tions (if such qualification is normally required)
or signed contracts that would require the deliv-
ery of such products within the next six
months.
‘‘(6) CAUSED BY UNFAIRLY TRADED SUBJECT
MERCHANDISE.—The administering authority will
presume that unfairly traded subject merchandise
has not caused the lack of current domestic produc-
tion where—
‘‘(A) the domestic industry has never pro-
duced the product;
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‘‘(B) the domestic industry ceased to
produce the product more than six months after
the product became liable for antidumping or
countervailing duties pursuant to 19 U.S.C.
§§ 1671b(d) or 1673b(d); or
‘‘(C) the product has been subject to anti-
dumping or countervailing duty orders for one
or more years and the domestic industry has
not produced the product during the duration
of these orders.
‘‘(7) 
ALLOWANCE.—The 
term 
‘allowance’
means an authorization by the administering author-
ity to permit importation into the United States, in-
cluding a foreign trade zone, of a quantity of prod-
uct free of duties imposed pursuant to an anti-
dumping or countervailing duty order issued under
this title.’’
(b) Section 516A of the Tariff Act of 1930, as
amended, is amended as follows:
(1) Section 516A(a)(2)(A)(i)(I) is amended to
read as follows:
‘‘notice of any determination de-
scribed in clause (ii), (iii), (iv), (v),
(viii) or (ix) of subparagraph (B),’’
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(2) Section 516A(a)(2)(B) is amended by add-
ing the following new provision:
‘‘(ix) a determination under section
753 of this Act.’’
(c) EFFECTIVE DATE.—This Act shall become effec-
tive within l days following the date of its enactment.
(d) CLERICAL AMENDMENT.—The table of contents
for title VII of the Tariff Act of 1930 is amended by in-
serting after the item relating to section 751 the following
new item:
‘‘Sec. 753. Temporary exception to antidumping or countervailing duty order or
finding.’’
TITLE II—SAFEGUARD
AMENDMENTS
SEC. 201. FULL PARTICIPATION OF INDUSTRIAL USERS.
(a) Section 202(i) of the Trade Act of 1974 (19
U.S.C. § 2252(i)) shall be amended to read as follows:
‘‘(i) LIMITED DISCLOSURE OF CONFIDENTIAL BUSI-
NESS INFORMATION UNDER PROTECTIVE ORDER.—The
Commission shall provide access to confidential business
information under protective order to authorized rep-
resentatives of interested parties who are parties to an in-
vestigation under this section. The term ‘interested party’
means:
‘‘(1) A foreign manufacturer, producer, or ex-
porter, or the United States importer, of an article
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which is the subject of an investigation under this
section or a trade or business association a majority
of the members of which are producers, exporters, or
importers of such article;
‘‘(2) The government of a country in which
such article is produced or manufactured;
‘‘(3) A manufacturer, producer, or wholesaler in
the United States of a like or directly competitive
article;
‘‘(4) A certified union or recognized union or
group of workers which is engaged in the manufac-
ture, production, or wholesale of a like or directly
competitive article in the United States;
‘‘(5) A trade or business association a majority
of whose members manufacture, produce, or whole-
sale a like or directly competitive article in the
United States;
‘‘(6) An association, a majority of whose mem-
bers is composed of interested parties described in
subparagraphs (3), (4), or (5) of this section with
respect to a like or directly competitive article; and
‘‘(7) Industrial users of an article which is the
subject of an investigation under this section or a
like or directly competitive article in the United
States; or an association a majority of whose mem-
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bers are industrial users of such article. The term
‘industrial users’ includes companies that consume
the subject merchandise or a like or directly com-
petitive article in the Untied States in a trade or
business, or purchase and sell the subject merchan-
dise or a like or directly competitive article in the
United States at wholesale or retail.’’
Æ