125
an interested party who is a party to the proceeding
in connection with which the matter arises may com-
mence an action in the United States Court of Inter-
national Trade by filing concurrently a summons and
complaint, each with the content and in the form,
manner, and style prescribed by the rules of that
court, contesting any factual findings or legal conclu-
sions upon which the determination is based.
‘‘(2) REVIEWABLE DETERMINATIONS.—The deter-
minations referred to in paragraph (1)(B) are—
‘‘(A) a final affirmative determination by
the administering authority or by the Commis-
sion under section 805, including any negative
part of such a determination (other than a part
referred to in subparagraph (B)),
‘‘(B) a final negative determination by the
administering authority or the Commission
under section 805,
‘‘(C) a determination by the administering
authority under section 845(b), with respect to a
matter described in paragraph (1)(A) of that sec-
tion, and
‘‘(D) a determination by the Commission
under section 845(a) that results in the revoca-
tion of an injurious pricing order.
126
‘‘(3) EXCEPTION.—Notwithstanding the 30-day
limitation imposed by paragraph (1) with regard to
an order described in paragraph (1)(B)(i), a final af-
firmative determination by the administering author-
ity under section 805 may be contested by commenc-
ing an action, in accordance with the provisions of
paragraph (1), within 30 days after the date of publi-
cation in the Federal Register of a final negative de-
termination by the Commission under section 805.
‘‘(4) PROCEDURES AND FEES.—The procedures
and fees set forth in chapter 169 of title 28, United
States Code, apply to an action under this section.
‘‘(b) STANDARDS OF REVIEW.—
‘‘(1) REMEDY.—The court shall hold unlawful
any determination, finding, or conclusion found—
‘‘(A) in an action brought under subpara-
graph (A) of subsection (a)(1), to be arbitrary,
capricious, an abuse of discretion, or otherwise
not in accordance with law, or
‘‘(B) in an action brought under subpara-
graph (B) of subsection (a)(1), to be unsupported
by substantial evidence on the record, or other-
wise not in accordance with law.
‘‘(2) RECORD FOR REVIEW.—
127
‘‘(A) IN
GENERAL.—For purposes of this
subsection, the record, unless otherwise stipulated
by the parties, shall consist of—
‘‘(i) a copy of all information pre-
sented to or obtained by the administering
authority or the Commission during the
course of the administrative proceeding, in-
cluding all governmental memoranda per-
taining to the case and the record of ex
parte meetings required to be kept by sec-
tion 843(a)(2); and
‘‘(ii) a copy of the determination, all
transcripts or records of conferences or hear-
ings, and all notices published in the Fed-
eral Register.
‘‘(B) CONFIDENTIAL OR PRIVILEGED MATE-
RIAL.—The confidential or privileged status ac-
corded to any documents, comments, or informa-
tion shall be preserved in any action under this
section. Notwithstanding the preceding sentence,
the court may examine, in camera, the confiden-
tial or privileged material, and may disclose
such material under such terms and conditions
as it may order.
128
‘‘(c) STANDING.—Any interested party who was a
party to the proceeding under title VIII shall have the right
to appear and be heard as a party in interest before the
United States Court of International Trade in an action
under this section. The party filing the action shall notify
all such interested parties of the filing of an action under
this section, in the form, manner, and within the time pre-
scribed by rules of the court.
‘‘(d) DEFINITIONS.—For purposes of this section:
‘‘(1) ADMINISTERING
AUTHORITY.—The term
‘administering authority’ has the meaning given that
term in section 861(1).
‘‘(2) 
COMMISSION.—The 
term 
‘Commission’
means the United States International Trade Com-
mission.
‘‘(3) INTERESTED PARTY.—The term ‘interested
party’ means any person described in section
861(17).’’.
(b) CONFORMING AMENDMENTS.—
(1) JURISDICTION
OF
THE
COURT.—Section
1581(c) of title 28, United States Code, is amended by
inserting ‘‘or 516B’’ after ‘‘section 516A’’.
(2) RELIEF.—Section 2643 of title 28, United
States Code, is amended—
129
(A) in subsection (c)(1) by striking ‘‘and
(5)’’ and inserting ‘‘(5), and (6)’’; and
(B) in subsection (c) by adding at the end
the following new paragraph:
‘‘(6) In any civil action under section 516B of the Tar-
iff Act of 1930, the Court of International Trade may not
issue injunctions or any other form of equitable relief, ex-
cept with regard to implementation of a countermeasure
order under section 468 of that Act, upon a proper showing
that such relief is warranted.’’.
TITLE II—OTHER PROVISIONS
SEC. 201. EQUIPMENT AND REPAIR OF VESSELS.
Section 466 of the Tariff Act of 1930 (19 U.S.C. 1466),
is amended by adding at the end the following new sub-
section:
‘‘(i) The duty imposed by subsection (a) shall not
apply with respect to activities occurring in a Shipbuilding
Agreement Party, as defined in section 861(22), with re-
spect to—
‘‘(1) self-propelled seagoing vessels of 100 gross
tons or more that are used for transportation of goods
or persons or for performance of a specialized service
(including, but not limited to, ice breakers and
dredges), and
‘‘(2) tugs of 365 kilowatts or more.
130
A vessel shall be considered ‘self-propelled seagoing’ if its
permanent propulsion and steering provide it all the char-
acteristics of self-navigability in the high seas.’’.
SEC. 202. EFFECT OF AGREEMENT WITH RESPECT TO PRI-
VATE REMEDIES.
No person other than the United States—
(1) shall have any cause of action or defense
under the Shipbuilding Agreement or by virtue of
congressional approval of the agreement, or
(2) may challenge, in any action brought under
any provision of law, any action or inaction by any
department, agency, or other instrumentality of the
United States, the District of Columbia, any State,
any political subdivision of a State, or any territory
or possession of the United States on the ground that
such action or inaction is inconsistent with such
agreement.
SEC. 203. IMPLEMENTING REGULATIONS.
After the date of the enactment of this Act, the heads
of agencies with functions under this Act and the amend-
ments made by this Act may issue such regulations as may
be necessary to ensure that this Act is appropriately imple-
mented on the date the Shipbuilding Agreement enters into
force with respect to the United States.
131
SEC. 204. AMENDMENTS TO THE MERCHANT MARINE ACT,
1936.
The Merchant Marine Act, 1936, is amended as fol-
lows:
(1) 
Section 
511(a)(2) 
(46 
App. 
U.S.C.
1161(a)(2)) is amended by inserting after ‘‘1939,’’ the
following: ‘‘or, if the vessel is a Shipbuilding Agree-
ment vessel, constructed in a Shipbuilding Agreement
Party, but only with regard to moneys deposited, on
or after the date on which the Shipbuilding Trade
Agreement Act takes effect, into a construction reserve
fund established under subsection (b)’’.
(2) Section 601(a) (46 App. U.S.C. 1171(a)) is
amended by striking ‘‘, and that such vessel or vessels
were built in the United States, or have been docu-
mented under the laws of the United States not later
than February 1, 1928, or actually ordered and under
construction for the account of citizens of the United
States prior to such date’’ and inserting ‘‘and that
such vessel or vessels were built in the United States,
or, if the vessel or vessels are Shipbuilding Agreement
vessels, in a Shipbuilding Agreement Party’’.
(3) Section 606(6) (46 App. U.S.C. 1176(6)) is
amended by inserting ‘‘or, if the vessel is a Shipbuild-
ing Agreement vessel, in a Shipbuilding Agreement
132
Party or in the United States’’ before ‘‘, except in an
emergency.’’.
(4) Section 607 (46 App. U.S.C. 1177) is amend-
ed as follows:
(A) Subsection (a) is amended by inserting
‘‘or, if the vessel is a Shipbuilding Agreement
vessel, in a Shipbuilding Agreement Party,’’
after ‘‘built in the United States’’.
(B) Subsection (k) is amended as follows:
(i) Paragraph (1) is amended by strik-
ing subparagraph (A) and inserting the fol-
lowing:
‘‘(A)(i) constructed in the United States and, if
reconstructed, reconstructed in the United States or in
a Shipbuilding Agreement Party, or
‘‘(ii) that is a Shipbuilding Agreement vessel
and is constructed in a Shipbuilding Agreement
Party and, if reconstructed, is reconstructed in a
Shipbuilding Agreement Party or in the United
States,’’.
(ii) Paragraph (2)(A) is amended to
read as follows:
‘‘(A)(i) constructed in the United States and, if
reconstructed, reconstructed in the United States or in
a Shipbuilding Agreement Party, or
133
‘‘(ii) that is a Shipbuilding Agreement vessel
and is constructed in a Shipbuilding Agreement
Party and, if reconstructed, is reconstructed in a
Shipbuilding Agreement Party or in the United
States, but only with regard to moneys deposited into
the fund on or after the date on which the Shipbuild-
ing Trade Agreement Act takes effect,’’.
(5) Section 610 (46 App. U.S.C. 1180) is amend-
ed by striking ‘‘shall be built in a domestic yard or
shall have been documented under the laws of the
United States not later than February 1, 1928, or ac-
tually ordered and under construction for the account
of citizens of the United States prior to such date,’’
and inserting ‘‘shall be built in the United States or,
if the vessel is a Shipbuilding Agreement vessel, in a
Shipbuilding Agreement Party,’’.
(6) 
Section 
901(b)(1) 
(46 
App. 
U.S.C.
1241(b)(1)) is amended by striking the third sentence
and inserting the following:
‘‘For purposes of this section, the term ‘privately owned
United States-flag commercial vessels’ shall be deemed to
include—
‘‘(A) any privately owned United States-flag
commercial vessel constructed in the United States,
and if rebuilt, rebuilt in the United States or in a
134
Shipbuilding Agreement Party on or after the date on
which the Shipbuilding Trade Agreement Act takes ef-
fect, and
‘‘(B) any privately owned vessel constructed in a
Shipbuilding Agreement Party on or after the date on
which the Shipbuilding Trade Agreement Act takes ef-
fect, and if rebuilt, rebuilt in a Shipbuilding Agree-
ment Party or in the United States, that is docu-
mented pursuant to chapter 121 of title 46, United
States Code.
The term ‘privately owned United States-flag commercial
vessels’ shall also be deemed to include any cargo vessel that
so qualified pursuant to section 615 of this Act or this para-
graph before the date on which the Shipbuilding Trade
Agreement Act takes effect. The term ‘privately owned Unit-
ed States-flag commercial vessels’ shall not be deemed to in-
clude any liquid bulk cargo vessel that does not meet the
requirements of section 3703a of title 46, United States
Code.’’.
(7) Section 905 (46 App. U.S.C. 1244) is amend-
ed by adding at the end the following:
‘‘(h) The term ‘Shipbuilding Agreement’ means the
Agreement Respecting Normal Competitive Conditions in
the Commercial Shipbuilding and Repair Industry, which
resulted from negotiations under the auspices of the Organi-
135
zation for Economic Cooperation and Development, and
was entered into on December 21, 1994.
‘‘(i) The term ‘Shipbuilding Agreement Party’ means
a state or separate customs territory that is a Party to the
Shipbuilding Agreement, and with respect to which the
United States applies the Shipbuilding Agreement.
‘‘(j) The term ‘Shipbuilding Agreement vessel’ means
a vessel to which the Secretary determines Article 2.1 of
the Shipbuilding Agreement applies.
‘‘(k) The term ‘Export Credit Understanding’ means
the Understanding on Export Credits for Ships which re-
sulted from negotiations under the auspices of the Organiza-
tion for Economic Cooperation and Development and was
entered into on December 21, 1994.
‘‘(l) The term ‘Export Credit Understanding vessel’
means a vessel to which the Secretary determines the Export
Credit Understanding applies.’’.
(8) Section 1104A (46 App. U.S.C. 1274) is
amended as follows:
(A) Paragraph (5) of subsection (b) is
amended to read as follows:
‘‘(5) shall bear interest (exclusive of charges for
the guarantee and service charges, if any) at rates not
to exceed such percent per annum on the unpaid
principal as the Secretary determines to be reason-
136
able, taking into account the range of interest rates
prevailing in the private market for similar loans
and the risks assumed by the Secretary, except that,
with respect to Export Credit Understanding vessels,
and Shipbuilding Agreement vessels, the obligations
shall bear interest at a rate the Secretary determines
to be consistent with obligations of the United States
under the Export Credit Understanding or the Ship-
building Agreement, as the case may be;’’.
(B) Subsection (i) is amended to read as
follows:
‘‘(i)(1) Except as provided in paragraph (2), the Sec-
retary may not, with respect to—
‘‘(A) the general 75 percent or less limitation
contained in subsection (b)(2),
‘‘(B) the 871⁄2 percent or less limitation con-
tained in the 1st, 2nd, 4th, or 5th proviso to sub-
section (b)(2) or in section 1112(b), or
‘‘(C) the 80 percent or less limitation in the 3rd
proviso to such subsection,
establish by rule, regulation, or procedure any percentage
within any such limitation that is, or is intended to be,
applied uniformly to all guarantees or commitments to
guarantee made under this section that are subject to the
limitation.
137
‘‘(2) With respect to Export Credit Understanding ves-
sels and Shipbuilding Agreement vessels, the Secretary may
establish by rule, regulation, or procedure a uniform per-
centage that the Secretary determines to be consistent with
obligations of the United States under the Export Credit
Understanding or the Shipbuilding Agreement, as the case
may be.’’.
(C) Section 1104B(b) (46 App. U.S.C.
1274a(b)) is amended by striking the period at
the end and inserting the following:
‘‘, except that, with respect to Export Credit Understanding
vessels and Shipbuilding Agreement vessels, the Secretary
may establish by rule, regulation, or procedure a uniform
percentage that the Secretary determines to be consistent
with obligations of the United States under the Export
Credit Understanding or the Shipbuilding Agreement, as
the case may be.’’.
TITLE III—REVENUE OFFSET
SEC. 301. PENALTIES FOR FAILURE TO DISCLOSE POSITION
THAT CERTAIN INTERNATIONAL SHIPPING
INCOME IS NOT INCLUDIBLE IN GROSS IN-
COME.
(a) IN GENERAL.—Section 883 of the Internal Revenue
Code of 1986 is amended by adding at the end the following
new subsection:
138
‘‘(d) PENALTIES FOR FAILURE TO DISCLOSE POSITION
THAT CERTAIN INTERNATIONAL SHIPPING INCOME IS NOT
INCLUDIBLE IN GROSS INCOME.—
‘‘(1) IN GENERAL.—A taxpayer who, with re-
spect to any tax imposed by this title, takes the posi-
tion that any of its gross income derived from the
international operation of a ship or ships is not in-
cludible in gross income by reason of subsection (a)(1)
or section 872(b)(1) shall be entitled to such treatment
only if such position is disclosed (in such manner as
the Secretary may prescribe) on the return of tax for
such tax (or any statement attached to such return).
‘‘(2) ADDITIONAL
PENALTIES
FOR
FAILING
TO
DISCLOSE POSITION.—If a taxpayer fails to meet the
requirement of paragraph (1) with respect to any tax-
able year—
‘‘(A) the amount of the income from the
international operation of a ship or ships—
‘‘(i) which is from sources without the
United States, and
‘‘(ii) which is attributable to a fixed
place of business in the United States,
shall be treated for purposes of this title as effec-
tively connected with the conduct of a trade or
business within the United States, and
139
‘‘(B) no deductions or credits shall be al-
lowed which are attributable to income from the
international operation of a ship or ships.
‘‘(3) REASONABLE
CAUSE
EXCEPTION.—This
subsection shall not apply to a failure to disclose a
position if it is shown that such failure is due to rea-
sonable cause and not due to willful neglect.’’
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (1) of section 872(b) of such Code
is amended by striking ‘‘Gross income’’ and inserting
‘‘Except as provided in section 883(d), gross income’’.
(2) Paragraph (1) of section 883(a) of such Code
is amended by striking ‘‘Gross income’’ and inserting
‘‘Except as provided in subsection (d), gross income’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—Notwithstanding section 3, the
amendments made by this section shall apply to tax-
able years beginning after the later of—
(A) December 31, 1996, or
(B) the date that the Shipbuilding Agree-
ment enters into force with respect to the United
States.
(2) 
COORDINATION
WITH
TREATIES.—The
amendments made by this section shall not apply in
140
any case where their application would be contrary
to any treaty obligation of the United States.
(d) INFORMATION TO BE PROVIDED
BY CUSTOMS
SERVICE.—The United States Custom Service shall provide
the Secretary of the Treasury or his delegate with such in-
formation as may be specified by such Secretary in order
to enable such Secretary to determine whether ships which
are not registered in the United States are engaged in
transportation to or from the United States.
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 Shipbuilding and Repair In-
dustry (hereafter in this Act referred to as the
‘‘Shipbuilding Agreement’’), a reciprocal trade
agreement which resulted from negotiations
under the auspices of the Organization for
Economic Cooperation and Development, and
was entered into on December 21, 1994.
SEC. 3. EFFECTIVE DATE.
Except as provided in section 205, this Act
and the amendments made by this Act take ef-
141
fect on the date that the Shipbuilding Agree-
ment 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 add-
ing 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 in-
vestigation.
‘‘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.
‘‘Sec. 809. Third country sales
‘‘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 avail-
able.
‘‘Sec. 843. Access to information.
‘‘Sec. 844. Conduct of investigations.
‘‘Sec. 845. Administrative 
action 
following 
shipbuilding
agreement panel reports.
142
‘‘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 de-
termines that a foreign vessel has been
sold directly or indirectly 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 mate-
rial injury, or
‘‘(B) the establishment of an in-
dustry in the United States is or has
been materially retarded,
by reason of the sale of such vessel, then
there shall be imposed upon the foreign
producer of the subject vessel an injuri-
ous pricing charge, in an amount equal to
143
the amount by which the normal value
exceeds the export price for the vessel.
For purposes of this subsection and sec-
tion 805(b)(1), a reference to the sale of a
foreign vessel includes the creation or
transfer of an ownership interest in the
vessel, except for an ownership interest
created or acquired solely for the pur-
pose 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 AUTHOR-
ITY.—
‘‘(1) GENERAL
RULE.—Except in the
case in which subsection (d)(6) applies,
an injurious pricing investigation shall
be initiated whenever the administering
authority determines, from information
available to it, that a formal investigation
is warranted into the question of whether
144
the elements necessary for the imposition
of a charge under section 801(a) exist,
and whether a producer described in sec-
tion 861(17)(C) would meet the criteria of
subsection (b)(1)(B) for a petitioner.
‘‘(2) TIME
FOR
INITIATION
BY
ADMIN-
ISTERING
AUTHORITY.—An 
investigation
may only be initiated under paragraph
(1) within 6 months after the time the ad-
ministering 
authority 
first 
knew 
or
should have known of the sale of the ves-
sel. Any period in which subsection
(d)(6)(A) applies shall not be included in
calculating that 6-month period.
‘‘(b) INITIATION BY PETITION.—
‘‘(1) PETITION REQUIREMENTS.—(A) Ex-
cept in a case in which subsection (d)(6)
applies, an injurious 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 author-
ity, on behalf of an industry, which al-
leges the elements necessary for the im-
position of an injurious pricing charge
145
under section 801(a) and the elements re-
quired under subparagraph (B), (C), (D),
or (E) of this paragraph, and which is ac-
companied by information reasonably
available to the petitioner supporting
those allegations and identifying the
transaction concerned.
‘‘(B)(i) If the petitioner is a producer
described in section 861(17)(C), and—
‘‘(I) if the petitioner was invited
to tender a bid on the contract at
issue, the petition shall include infor-
mation indicating that the petitioner
actually did so and the bid of the pe-
titioner substantially met the delivery
date and technical requirements of
the bid, or
‘‘(II) if the petitioner was not in-
vited to tender a bid, the petition
shall include information indicating
that the petitioner was capable of
building the vessel concerned and, if
the petitioner knew or should have
known of the proposed purchase, it
made demonstrable efforts to con-
146
clude a sale with the United States
buyer consistent with the delivery
date and technical requirements of
the buyer.
‘‘(ii) For purposes of clause (i)(II),
there is a rebuttable presumption that
the petitioner knew or should have
known of the proposed purchase if it is
demonstrated that—
‘‘(I) the majority of the producers
in the industry have made efforts
with the United States buyer to con-
clude a sale of the subject vessel, or
‘‘(II) general information on the
sale was available from brokers, fin-
anciers, 
classification 
societies,
charterers, 
trade 
associations, 
or
other entities normally involved in
shipbuilding transactions with whom
the petitioner had regular contacts or
dealings.
‘‘(C) If the petitioner is an interested
party described in section 861(17)(D), the
petition shall include information indi-
cating that members of the union or
147
group of workers described in that sec-
tion are employed by a producer that
meets the requirements of subparagraph
(B) of this paragraph.
‘‘(D) If the petitioner is an interested
party described in section 861(17)(E), the
petition shall include information indi-
cating that a member of the association
described in that section is a producer
that meets the requirements of subpara-
graph (B) of this paragraph.
‘‘(E) If the petitioner is an interested
party described in section 861(17)(F), the
petition shall include information indi-
cating that a member of the association
described in that section meets the re-
quirements of subparagraph (C) or (D) of
this paragraph.
‘‘(F) The petition may be amended at
such time, and upon such conditions, as
the administering authority and the Com-
mission may permit.
‘‘(2) SIMULTANEOUS
FILING
WITH
COM-
MISSION.—The petitioner shall file a copy
of the petition with the Commission on
148
the same day as it is filed with the admin-
istering authority.
‘‘(3) DEADLINE FOR FILING PETITION.—
‘‘(A) DEADLINE.—(i) A petitioner to
which paragraph (1)(B)(i)(I) 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 para-
graph (1)(B)(i)(II) 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 sub-
ject vessel, and
‘‘(II) submit to the administer-
ing authority a notice of intent to
file a petition no later than 6
149
months after the time that the pe-
titioner first knew or should have
known of the sale (unless the peti-
tion itself is filed within that 6-
month period).
‘‘(B) 
PRESUMPTION
OF
KNOWL-
EDGE.—For purposes of this para-
graph, if the existence of the sale, to-
gether with general information con-
cerning the vessel, is published in the
international trade press, there is a
rebuttable presumption that the peti-
tioner 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 admin-
istering authority shall notify the govern-
ment of the exporting country of the in-
vestigation. In the case of the initiation
of an investigation under subsection (b),
150
such notification shall include a public
version of the petition.
‘‘(2) 
ACCEPTANCE
OF
COMMUNICA-
TIONS.—The administering authority shall
not accept any unsolicited oral or written
communication from any person other
than an interested party described in sec-
tion 861(17)(C), (D), (E), or (F) before the
administering authority makes its deci-
sion whether to initiate an investigation
pursuant to a petition, except for inquir-
ies regarding the status of the admin-
istering authority’s consideration of the
petition or a request for consultation by
the government of the exporting country.
‘‘(3) NONDISCLOSURE OF CERTAIN INFOR-
MATION.—The 
administering 
authority
and the Commission shall not disclose in-
formation with regard to any draft peti-
tion submitted for review and comment
before it is filed under subsection (b)(1).
‘‘(d) PETITION DETERMINATION.—
‘‘(1) 
TIME
FOR
INITIAL
DETERMINA-
TION.—(A) Within 45 days after the date
on which a petition is filed under sub-
151
section (b), the administering authority
shall, after examining, on the basis of
sources readily available to the admin-
istering authority, the accuracy and ade-
quacy of the evidence provided in the pe-
tition, determine whether the petition—
‘‘(i) alleges the elements necessary
for the imposition of an injurious
pricing charge under section 801(a)
and the elements required under sub-
section (b)(1)(B), (C), (D), or (E), and
contains 
information 
reasonably
available to the petitioner supporting
the allegations; and
‘‘(ii) determine if the petition has
been filed by or on behalf of the in-
dustry.
‘‘(B) Any period in which paragraph
(6)(A) applies shall not be included in cal-
culating the 45-day period described in
subparagraph (A).
‘‘(2) AFFIRMATIVE
DETERMINATIONS.—If
the determinations under clauses (i) and
(ii) of paragraph (1)(A) are affirmative,
the administering authority shall initiate
152
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 petition, terminate the proceeding,
and notify the petitioner in writing of the
reasons for the determination.
‘‘(4) DETERMINATION OF INDUSTRY SUP-
PORT.—
‘‘(A) GENERAL RULE.—For purposes
of this subsection, the administering
authority shall determine that the pe-
tition has been filed by or on behalf
of the domestic industry, if—
‘‘(i) the domestic producers or
workers who support the petition
collectively account for at least 25
percent of the total capacity of
domestic producers capable of
producing a like vessel, and
153
‘‘(ii) the domestic producers
or workers who support the peti-
tion collectively account for more
than 50 percent of the total capac-
ity to produce a like vessel of that
portion of the domestic industry
expressing support for or opposi-
tion to the petition.
‘‘(B) 
CERTAIN
POSITIONS
DIS-
REGARDED.—In determining industry
support under subparagraph (A), the
administering 
authority 
shall 
dis-
regard the position of domestic pro-
ducers who oppose the petition, if
such producers are related to the for-
eign producer or United States buyer
of the subject vessel, or the domestic
producer is itself the United States
buyer, unless such domestic produc-
ers demonstrate that their interests
as domestic producers would be ad-
versely affected by the imposition of
an injurious pricing charge.
‘‘(C) POLLING THE INDUSTRY.—If the
petition does not establish support of
154
domestic producers or workers ac-
counting for more than 50 percent of
the total capacity to produce a like
vessel—
‘‘(i) the administering author-
ity shall poll the industry or rely
on other information in order to
determine if there is support for
the petition as required by sub-
paragraph (A), or
‘‘(ii) if there is a large number
of producers in the industry, the
administering authority may de-
termine industry support for the
petition by using any statistically
valid sampling method to poll the
industry.
‘‘(D) 
COMMENTS
BY
INTERESTED
PARTIES.—Before 
the 
administering
authority 
makes 
a 
determination
with respect to initiating an inves-
tigation, any person who would qual-
ify as an interested party under sec-
tion 861(17) if an investigation were
initiated, may submit comments or in-
155
formation on the issue of industry
support. After the administering au-
thority makes a determination with
respect to initiating an investigation,
the determination regarding industry
support shall not be reconsidered.
‘‘(5) DEFINITION OF DOMESTIC PRODUC-
ERS
OR
WORKERS.—For purposes of this
subsection, the term ‘domestic producers
or workers’ means interested parties as
defined in section 861(17)(C), (D), (E), or
(F).
‘‘(6) PROCEEDINGS BY WTO MEMBERS.—
The administering authority shall not ini-
tiate an investigation under this section
if, with respect to the vessel sale at issue,
an antidumping proceeding conducted by
a WTO member who is not a Shipbuilding
Agreement Party—
‘‘(A) has been initiated and has
been pending for not more than one
year, or
‘‘(B) has been completed and re-
sulted in the imposition of antidump-
ing measures or a negative deter-
156
mination with respect to whether the
sale was at less than fair value or
with respect to injury.
‘‘(e) NOTIFICATION TO COMMISSION OF DE-
TERMINATION.—The administering authority
shall—
‘‘(1) notify the Commission imme-
diately of any determination it makes
under subsection (a) or (d), and
‘‘(2) if the determination is affirma-
tive, make available to the Commission
such information as it may have relating
to the matter under investigation, under
such procedures as the administering au-
thority and the Commission may estab-
lish to prevent disclosure, other than
with the consent of the party providing it
or under protective order, of any infor-
mation to which confidential treatment
has been given by the administering au-
thority.
‘‘SEC. 803. PRELIMINARY DETERMINATIONS.
‘‘(a) DETERMINATION
BY
COMMISSION
OF
REASONABLE INDICATION OF INJURY.—
157
‘‘(1) GENERAL
RULE.—Except in the
case of a petition dismissed by the admin-
istering authority under section 802(d)(3),
the Commission, within the time speci-
fied in paragraph (2), shall determine,
based on the information available to it
at the time of the determination, whether
there is a reasonable indication that—
‘‘(A) an industry in the United
States—
‘‘(i) is or has been materially
injured, or
‘‘(ii) is threatened with mate-
rial injury, or
‘‘(B) the establishment of an in-
dustry in the United States is or has
been materially retarded,
by reason of the sale of the subject vessel.
If the Commission makes a negative de-
termination under this paragraph, the in-
vestigation shall be terminated.
‘‘(2) TIME FOR COMMISSION DETERMINA-
TION.—The Commission shall make the
determination described in paragraph (1)
within 90 days after the date on which