Stopping Adversarial Tariff Evasion Act

Bill: 119-s-172
Sponsor: full_name: Sen. Scott, Rick [R-FL]
Introduced: 2025-01-21
Policy area: Foreign Trade and International Finance
Subjects: Asia

Caribbean area

China

Cuba

Europe

Iran

Latin America

Middle East

North Korea

Russia

Trade agreements and negotiations

Trade restrictions

Venezuela
Latest action: action_date: 2025-01-21
text: Read twice and referred to the Committee on Finance.

Summaries:

tv_txt: II 119th CONGRESS 1st Session S. 172 IN THE SENATE OF THE UNITED STATES January 21, 2025 Mr. Scott of Florida introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To clarify the country of origin of certain articles imported into the United States for purposes of certain trade enforcement actions.

1. Short title This Act may be cited as the Stopping Adversarial Tariff Evasion Act . 2. Clarification of country of origin criteria for enforcement action under trade agreements or in response to certain foreign trade practices Section 301(d) of the Trade Act of 1974 ( 19 U.S.C. 2411(d) ) is amended by adding at the end the following: (10) (A) Any action taken by the Trade Representative under this section, with respect to a foreign adversary country, shall apply to any article that is produced, manufactured, or that underwent final assembly by a foreign adversary party or an entity owned, controlled, directed, or operated by a foreign adversary party, as if such article originated in the foreign adversary country. (B) In this paragraph: (i) The term control has the meaning given that term in section 800.208 of title 31, Code of Federal Regulations (as in effect on the date of the enactment of the Stopping Adversarial Tariff Evasion Act ). (ii) The term entity owned, controlled, directed, or operated by a foreign adversary party includes any entity for which, on any date during the most recent 12-month period, not less than 25 percent of the equity interests in such entity are held directly or indirectly by 1 or more foreign adversary parties including through— (I) interests in co-investment vehicles, joint ventures, or similar arrangements; or (II) a derivative financial instrument or contractual arrangement between the entity and a foreign adversary party, including any such instrument or contract that seeks to replicate any financial return with respect to such entity or interest in such entity. (iii) The term foreign adversary country means any of the following: (I) The People’s Republic of China. (II) The Russian Federation. (III) The Islamic Republic of Iran. (IV) The Democratic People’s Republic of Korea. (V) The Republic of Cuba. (VI) The Bolivarian Republic of Venezuela during any period of time during which Nicholás Maduro is President of the Republic. (iv) The term foreign adversary party means any of the following: (I) The government of a foreign adversary country, including any agency, government instrumentality, official, or agent of such a government. (II) Any entity organized under the laws of a foreign adversary country (or any political subdivision thereof). (III) Any entity the headquarters of which is located within a foreign adversary country. (IV) Any entity substantively involved in the industrial policies or military-civil fusion strategy of the People’s Republic of China, including by accepting funding from, performing a service for, or receiving a subsidy from the People’s Republic of China related to such policies or strategy. . 3. Clarification of country of origin criteria for enforcement action by President after determination of import injury Section 203 of the Trade Act of 1974 ( 19 U.S.C. 2253 ) is amended by adding at the end the following: (h) Application of action to foreign adversary parties (1) Any action taken under this section shall apply to any article that is produced, manufactured, or that underwent final assembly by a foreign adversary party or an entity owned, controlled, directed, or operated by a foreign adversary party, as if such article originated in a foreign adversary country. (2) In this subsection: (A) The term control has the meaning given that term in section 800.208 of title 31, Code of Federal Regulations (as in effect on the date of the enactment of the Stopping Adversarial Tariff Evasion Act ). (B) The term entity owned, controlled, directed, or operated by a foreign adversary party includes any entity for which, on any date during the most recent 12-month period, not less than 25 percent of the equity interests in such entity are held directly or indirectly by 1 or more foreign adversary parties including through— (i) interests in co-investment vehicles, joint ventures, or similar arrangements; or (ii) a derivative financial instrument or contractual arrangement between the entity and a foreign adversary party, including any such instrument or contract that seeks to replicate any financial return with respect to such entity or interest in such entity. (C) The term foreign adversary country means any of the following: (i) The People’s Republic of China. (ii) The Russian Federation. (iii) The Islamic Republic of Iran. (iv) The Democratic People’s Republic of Korea. (v) The Republic of Cuba. (vi) The Bolivarian Republic of Venezuela during any period of time during which Nicholás Maduro is President of the Republic. (D) The term foreign adversary party means any of the following: (i) The government of a foreign adversary country, including any agency, government instrumentality, official, or agent of such a government. (ii) Any entity organized under the laws of a foreign adversary country (or any political subdivision thereof). (iii) Any entity the headquarters of which is located within a foreign adversary country. (iv) Any entity substantively involved in the industrial policies or military-civil fusion strategy of the People’s Republic of China, including by accepting funding from, performing a service for, or receiving a subsidy from the People’s Republic of China related to such policies or strategy. . 4. Clarification of country of origin criteria for enforcement action to safeguard national security Section 232(c) of the Trade Expansion Act of 1962 ( 19 U.S.C. 1862(c) ) is amended by adding at the end the following: (4) (A) Any action taken by the President under paragraph (1) shall apply to any article that is produced, manufactured, or that underwent final assembly by a foreign adversary party or an entity owned, controlled, directed, or operated by a foreign adversary party, as if such article originated in a foreign adversary country. (B) For the purposes of this paragraph the following definitions apply: (i) The term control has the meaning given that term in section 800.208 of title 31, Code of Federal Regulations (as in effect on the date of the enactment of the Stopping Adversarial Tariff Evasion Act ). (ii) The term entity owned, controlled, directed, or operated by a foreign adversary party includes any entity for which, on any date during the most recent 12-month period, not less than 25 percent of the equity interests in such entity are held directly or indirectly by 1 or more foreign adversary parties including through— (I) interests in co-investment vehicles, joint ventures, or similar arrangements; or (II) a derivative financial instrument or contractual arrangement between the entity and a foreign adversary party, including any such instrument or contract that seeks to replicate any financial return with respect to such entity or interest in such entity. (iii) The term foreign adversary country means any of the following: (I) The People’s Republic of China. (II) The Russian Federation. (III) The Islamic Republic of Iran. (IV) The Democratic People’s Republic of Korea. (V) The Republic of Cuba. (VI) The Bolivarian Republic of Venezuela during any period of time during which Nicholás Maduro is President of the Republic. (iv) The term foreign adversary party means any of the following: (I) The government of a foreign adversary country, including any agency, government instrumentality, official, or agent of such a government. (II) Any entity organized under the laws of a foreign adversary country (or any political subdivision thereof). (III) Any entity the headquarters of which is located within a foreign adversary country. (IV) Any entity substantively involved in the industrial policies or military-civil fusion strategy of the People’s Republic of China, including by accepting funding from, performing a service for, or receiving a subsidy from the People’s Republic of China related to such policies or strategy. .