I
104TH CONGRESS
1ST SESSION
H. R. 2754
To approve and implement the OECD Shipbuilding Trade Agreement.
IN THE HOUSE OF REPRESENTATIVES
DECEMBER 11, 1995
Mr. CRANE (for himself, Mr. GIBBONS, and Ms. DUNN of Washington) intro-
duced the following bill; which was referred to the Committee on Ways
and Means, and in addition to the Committee on National Security, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned
A BILL
To approve and implement the OECD Shipbuilding Trade
Agreement.
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 ‘‘Shipbuilding Trade
Agreement Act’’.
SEC. 2. APPROVAL OF THE SHIPBUILDING AGREEMENT.
The Congress approves The Agreement Respecting
Normal Competitive Conditions in the Commercial Ship-
building and Repair Industry (hereafter in this Act re-
ferred to as the ‘‘Shipbuilding Agreement’’), a reciprocal
trade agreement which resulted from negotiations under
the auspices of the Organization for Economic Coopera-
tion and Development, and was entered into on December
21, 1994.
SEC. 3. EFFECTIVE DATE.
This Act and the amendments made by this Act take
effect on the date that the Shipbuilding Agreement enters
into force with respect to the United States.
TITLE I—INJURIOUS PRICING
AND COUNTERMEASURES
SEC. 101. INJURIOUS PRICING AND COUNTERMEASURES
PROCEEDINGS.
The Tariff Act of 1930 is amended by adding at the
end the following new title:
‘‘TITLE 
VIII—INJURIOUS 
PRIC-
ING AND COUNTERMEASURES
RELATING TO SHIPBUILDING
‘‘Subtitle A—Injurious Pricing Charge and Countermeasures
‘‘Sec. 801. Injurious pricing charge.
‘‘Sec. 802. Procedures for initiating an injurious pricing investigation.
‘‘Sec. 803. Preliminary determinations.
‘‘Sec. 804. Termination or suspension of investigation.
‘‘Sec. 805. Final determinations.
‘‘Sec. 806. Imposition and collection of injurious pricing charge.
‘‘Sec. 807. Imposition of countermeasures.
‘‘Sec. 808. Injurious pricing petitions by third countries.
‘‘Subtitle B—Special Rules
‘‘Sec. 821. Export price.
‘‘Sec. 822. Normal value.
‘‘Sec. 823. Currency conversion.
‘‘Subtitle C—Procedures
‘‘Sec. 841. Hearings.
‘‘Sec. 842. Determinations on the basis of the facts available.
‘‘Sec. 843. Access to information.
‘‘Sec. 844. Conduct of investigations.
‘‘Sec. 845. Administrative action following shipbuilding agreement panel
reports.
‘‘Subtitle D—Definitions
‘‘Sec. 861. Definitions.
‘‘Subtitle A—Injurious Pricing
Charge and Countermeasures
‘‘SEC. 801. INJURIOUS PRICING CHARGE.
‘‘(a) BASIS FOR CHARGE.—If—
‘‘(1) the administering authority determines
that a foreign vessel has been sold directly or indi-
rectly to one or more United States buyers at less
than its fair value, and
‘‘(2) the Commission determines that—
‘‘(A) an industry in the United States—
‘‘(i) is or has been materially injured,
or
‘‘(ii) is threatened with material in-
jury, or
‘‘(B) the establishment of an industry in
the United States is or has been materially re-
tarded,
by reason of the sale of such vessel, then there shall
be imposed upon the foreign producer of the subject
vessel an injurious pricing charge, in an amount
equal to the amount by which the normal value ex-
ceeds the export price for the vessel. For purposes
of this subsection and section 805(b)(1), a reference
to the sale of a foreign vessel includes the creation
or transfer of an ownership interest in the vessel, ex-
cept for an ownership interest created or acquired
solely for the purpose of providing security for a
normal commercial loan.
‘‘(b) FOREIGN VESSELS NOT MERCHANDISE.—No
foreign vessel may be considered to be, or to be part of,
a class or kind of merchandise for purposes of subtitle B
of title VII.
‘‘SEC. 802. PROCEDURES FOR INITIATING AN INJURIOUS
PRICING INVESTIGATION.
‘‘(a) INITIATION BY ADMINISTERING AUTHORITY.—
‘‘(1) GENERAL RULE.—Except in the case in
which subsection (d)(6) applies, an injurious pricing
investigation shall be initiated whenever the admin-
istering authority determines, from information
available to it, that a formal investigation is war-
ranted into the question of whether the elements
necessary for the imposition of a charge under sec-
tion 801(a) exist, and whether a producer described
in section 861(17)(C) would meet the criteria of sub-
section (b)(1)(B) for a petitioner.
‘‘(2) TIME FOR INITIATION BY ADMINISTERING
AUTHORITY.—An investigation may only be initiated
under paragraph (1) within 6 months after the time
the administering authority first knew or should
have known of the sale of the vessel. Any period in
which subsection (d)(6)(A) applies shall not be in-
cluded in calculating that 6-month period.
‘‘(b) INITIATION BY PETITION.—
‘‘(1) PETITION REQUIREMENTS.—(A) Except in
a case in which subsection (d)(6) applies, an injuri-
ous pricing proceeding shall be initiated whenever an
interested party, as defined in subparagraph (C),
(D), (E), or (F) of section 861(17), files a petition
with the administering authority, on behalf of an in-
dustry, which alleges the elements necessary for the
imposition of an injurious pricing charge under sec-
tion 801(a) and the elements required under sub-
paragraph (B), (C), (D), or (E) of this paragraph,
and which is accompanied by information reasonably
available to the petitioner supporting those allega-
tions and identifying the transaction concerned.
‘‘(B)(i) If the petitioner is a producer described
in section 861(17)(C), and—
‘‘(I) if the vessel was sold through a broad
multiple bid, the petition shall include informa-
tion indicating that the petitioner was invited to
tender a bid on the contract at issue, the peti-
tioner actually did so, and the bid of the peti-
tioner substantially met the delivery date and
technical requirements of the bid,
‘‘(II) if the vessel was sold through any
bidding process other than a broad multiple bid
and the petitioner was invited to tender a bid
on the contract at issue, the petition shall in-
clude information indicating that the petitioner
actually did so and the bid of the petitioner
substantially met the delivery date and tech-
nical requirements of the bid, or
‘‘(III) except in a case in which the vessel
was sold through a broad multiple bid, if there
is no invitation to tender a bid, the petition
shall include information indicating that the pe-
titioner was capable of building the vessel con-
cerned and, if the petitioner knew or should
have known of the proposed purchase, it made
demonstrable efforts to conclude a sale with the
United States buyer consistent with the delivery
date and technical requirements of the buyer.
that meets the requirements of subparagraph (B) of
this paragraph.
‘‘(E) If the petitioner is an interested party de-
scribed in section 861(17)(F), the petition shall in-
clude information indicating that a member of the
association described in that section meets the re-
quirements of subparagraph (C) or (D) of this para-
graph.
‘‘(F) The petition may be amended at such
time, and upon such conditions, as the administering
authority and the Commission may permit.
‘‘(2) SIMULTANEOUS
FILING
WITH
COMMIS-
SION.—The petitioner shall file a copy of the peti-
tion with the Commission on the same day as it is
filed with the administering authority.
‘‘(3) DEADLINE FOR FILING PETITION.—
‘‘(A) DEADLINE.—(i) A petitioner to which
paragraph (1)(B) (i) or (ii) applies shall file the
petition no later than the earlier of—
‘‘(I) 6 months after the time that the
petitioner first knew or should have known
of the sale of the subject vessel, or
‘‘(II) 6 months after delivery of the
subject vessel.
‘‘(ii) A petitioner to which paragraph
(1)(B)(iii) applies shall—
‘‘(I) file the petition no later than the
earlier of 9 months after the time that the
petitioner first knew or should have known
of the sale of the subject vessel, or 6
months after delivery of the subject vessel,
and
‘‘(II) submit to the administering au-
thority a notice of intent to file a petition
no later than 6 months after the time that
the petitioner first knew or should have
known of the sale (unless the petition itself
is filed within that 6-month period).
‘‘(B) PRESUMPTION
OF
KNOWLEDGE.—
For purposes of this paragraph, if the existence
of the sale, together with general information
concerning the vessel, is published in the inter-
national trade press, there is a rebuttable pre-
sumption that the petitioner knew or should
have known of the sale of the vessel from the
date of that publication.
‘‘(c) ACTIONS
BEFORE
INITIATING
INVESTIGA-
TIONS.—
‘‘(1) NOTIFICATION OF GOVERNMENTS.—Before
initiating an investigation under either subsection
(a) or (b), the administering authority shall notify
the government of the exporting country of the in-
vestigation. In the case of the initiation of an inves-
tigation under subsection (b), such notification shall
include a public version of the petition.
‘‘(2) ACCEPTANCE OF COMMUNICATIONS.—The
administering authority shall not accept any unsolic-
ited oral or written communication from any person
other than an interested party described in section
861(17)(C), (D), (E), or (F) before the administer-
ing authority makes its decision whether to initiate
an investigation pursuant to a petition, except for
inquiries regarding the status of the administering
authority’s consideration of the petition or a request
for consultation by the government of the exporting
country.
‘‘(3) NONDISCLOSURE
OF
CERTAIN
INFORMA-
TION.—The administering authority and the Com-
mission shall not disclose information with regard to
any draft petition submitted for review and comment
before it is filed under subsection (b)(1).
‘‘(d) PETITION DETERMINATION.—
‘‘(1) TIME FOR INITIAL DETERMINATION.—(A)
Within 45 days after the date on which a petition
is filed under subsection (b), the administering au-
thority shall, after examining, on the basis of
sources readily available to the administering au-
thority, the accuracy and adequacy of the evidence
provided in the petition, determine whether the peti-
tion—
‘‘(i) alleges the elements necessary for the
imposition of an injurious pricing charge under
section 801(a) and the elements required under
subsection (b)(1)(B), (C), (D), or (E), and con-
tains information reasonably available to the pe-
titioner supporting the allegations; and
‘‘(ii) determine if the petition has been
filed by or on behalf of the industry.
‘‘(B) Any period in which paragraph (6)(A) ap-
plies shall not be included in calculating the 45-day
period described in subparagraph (A).
‘‘(2) AFFIRMATIVE
DETERMINATIONS.—If the
determinations under clauses (i) and (ii) of para-
graph (1)(A) are affirmative, the administering au-
thority shall initiate an investigation to determine
whether the vessel was sold at less than fair value,
unless paragraph (6) applies.
‘‘(3) NEGATIVE DETERMINATIONS.—If—
‘‘(A) the determination under clause (i) or
(ii) of paragraph (1)(A) is negative, or
‘‘(B) paragraph (6)(B) applies,
the administering authority shall dismiss the peti-
tion, terminate the proceeding, and notify the peti-
tioner in writing of the reasons for the determina-
tion.
‘‘(4) DETERMINATION
OF
INDUSTRY
SUP-
PORT.—
‘‘(A) GENERAL
RULE.—For purposes of
this subsection, the administering authority
shall determine that the petition has been filed
by or on behalf of the domestic industry, if—
‘‘(i) the domestic producers or work-
ers who support the petition collectively ac-
count for at least 25 percent of the total
capacity of domestic producers capable of
producing a like vessel, and
‘‘(ii) the domestic producers or work-
ers who support the petition collectively ac-
count for more than 50 percent of the total
capacity to produce a like vessel of that
portion of the domestic industry expressing
support for or opposition to the petition.