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SECTION 1. EXCEPTIONS FOR SHORT-SUPPLY SITUATIONS.

(a) In General.--Chapter 1 of subtitle C of title VII of the Tariff
Act of 1930 (19 U.S.C. 1675) is amended by adding at the end the
following new section:

''SEC. 752. EXCEPTIONS FOR SHORT-SUPPLY SITUATIONS.

''(a) In General.--
''(1) Petition.--If a short-supply petition is filed under
this section and the administering authority determines that a
short-supply situation exists with respect to a particular
product which is within the same class or kind as merchandise
that is the subject of an order or finding described in
paragraph (2), the administering authority shall suspend the
order or finding and shall authorize the importation of
additional quantities of the product free of duties, estimated
duty deposits, reporting requirements, or other restrictions,
unless the administering authority determines that such imports
will erode the pricing structure of the domestic merchandise
that is comparable to the class or kind of merchandise subject
to an order or finding.
''(2) Order or finding.--An order or finding described in
this paragraph is--
''(A) an antidumping order issued under section
736,
''(B) a finding issued under the Antidumping Act,
1921, or
''(C) a countervailing duty order issued under
section 706 or 303.
''(b) Factors.--In determining whether a short-supply situation
exists in the United States with respect to a product, the
administering authority shall consider all relevant factors,
including--
''(1) if there is domestic production of the product with
respect to which the short-supply petition has been filed;
''(2) to the extent information is available, the recent
levels of capacity utilization of domestic facilities producing
the product;
''(3) the quantity of the product requested in the short-
supply petition and the ability of domestic producers to supply
the product in such quantity;
''(4) the reasonableness of the specifications requested by
the purchaser or end-user of the product; and
''(5) the time the product can be delivered to the
purchaser or end-user.
''(c) Procedures.--
''(1) Petitions.--An interested party may file with the
administering authority a petition requesting a determination
under this section at any time an order or finding described in
subsection (a)(2) is in effect. The petition shall be in such
form and contain such information as the administering
authority requires.
''(2) Publication.--If the administering authority finds
that a petition filed under paragraph (1) contains adequate
information, the administering authority shall promptly publish
in the Federal Register a notice that a determination under
this section is under consideration.
''(3) Comment.--The administering authority shall provide
opportunity for comment by interested parties regarding issues
raised in the petition.
''(4) Certification.--The petitioner and any interested
party submitting information shall certify that the information
contained in the petition (or submission, as the case may be)
is accurate and complete to the best of the petitioner's or
party's knowledge.
''(5) Consultations.--In making a determination under this
section, the administering authority shall consult with
domestic users of the product.
''(d) Determination.--
''(1) In general.--In any case in which the administering
authority finds that a short-supply petition contains adequate
information, the administering authority shall determine, not
later than the day specified in paragraph (2)--
''(A) if a short-supply situation exists in the
United States with respect to the product; and
''(B) if the determination under subparagraph (A)
is affirmative, the quantity of the product, if any,
that may be imported into the United States without
regard to the antidumping or countervailing duty order
that would otherwise apply. In making the determination
under this subparagraph, the administering authority
may consider whether allowing particular quantities of
the product to be imported without regard to the
antidumping or countervailing duty order will erode the
pricing structure of the domestic merchandise that is
comparable to the class or kind of merchandise subject
to an order or finding.
''(2) Time limit for making short-supply determination.--
The administering authority shall make a determination
described in paragraph (1) not later than--
''(A) the 15th day after the date the petition is
filed if--
''(i) the administering authority
authorized the importation of additional
quantities of the product during each of the 2
years preceding the date the petition is filed,
or
''(ii) the administering authority finds,
on the basis of available information (without
regard to whether such information is available
as part of the petition under review), that the
product is not produced in the United States;
or
''(B) the 30th day after the date the petition is
filed if clause (i) or (ii) of subparagraph (A) does
not apply, except that if a petition under this section
is received more than 30 days before the issuance of an
antidumping or countervailing duty order with respect
to the product, the administering authority may make a
short-supply determination at the time and as part of
such order.
''(3) Rebuttable presumption.--If a petition is filed under
this section, there shall be a rebuttable presumption that the
short-supply situation alleged in the petition exists.
''(4) Short-supply allowance upon failure of a domestic
producer to supply.--If the administering authority determines
that a short-supply situation does not exist because a producer
in the United States states that it is willing and able to
supply the product in the quantity requested at the
specifications, price, and delivery date requested, and the
producer fails to supply the product as promised, the
administering authority shall, within 3 days of being notified
of the failure, grant a short-supply allowance for the quantity
the domestic producer failed to supply.
''(e) Notice.--The administering authority shall publish in the
Federal Register notice of each determination made under this section
and the reasons therefore.
''(f) Definitions and Special Rules.--For purposes of this section:
''(1) Interested party.--The term 'interested party'
means--
''(A) a United States producer or consumer of the
product;
''(B) a United States importer or distributor of
the product; and
''(C) a foreign exporter or producer who will
supply the product to a United States producer,
consumer, importer, or distributor.
''(2) Product.--The term 'product' means the product for
which a short-supply allowance is requested, 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) Reasonable specifications.--The term 'reasonable
specifications' means specifications that are developed in the
ordinary course of business. The administering authority shall
apply a rebuttable presumption that specifications are
reasonable whenever such specifications have been in use
either--
''(A) prior to the filing of an antidumping or
countervailing duty petition; or
''(B) more than two years.
''(4) Erode the pricing structure.--The term 'erode the
pricing structure' means United States prices for the domestic
merchandise comparable to the class or kind of merchandise
subject to an order or finding will be suppressed by reason of
the importation of specified quantities of the product pursuant
to a short supply allowance. The Secretary shall apply a
rebuttable presumption that the imported product will not erode
the pricing structure of the comparable domestic merchandise
whenever--
''(A) no United States producers have produced a
product meeting the reasonable specifications within
the last six months, nor have any United States
producers either qualified to supply products meeting
such specifications (if such qualification is normally
required) or signed contracts that would require the
delivery of such products within the next six months;
or
''(B) domestic consumption of the product exceeds
domestic production by more than fifty percent, and the
quantity of product covered by a short supply
determination is less than half of the difference
between domestic consumption and domestic production.
In considering whether a short-supply determination would erode
the pricing structure, the administering authority shall
consider, among other factors--
(A) the quantity of short supply relief approved
within the applicable class or kind of merchandise; and
(B) the interchangeability between products subject
to short-supply determinations and other products
within the applicable class or kind of merchandise.
''(5) Short-supply allowance.--The term 'short-supply
allowance' means an authorization by the administering
authority to permit importation into the United States,
including a foreign trade zone, of a quantity of product free
of duties imposed pursuant to an antidumping or countervailing
duty order issued under this title.''.
(b) Clerical Amendment.--The table of contents for title VII of the
Tariff Act of 1930 is amended by inserting after the item relating to
section 751 the following new item:

''Sec. 752. Exceptions for short-supply situations.''.
Output:
Amends the Tariff Act of 1930 to require the administering authority, whenever it has determined upon the filing of a short-supply petition that a short-supply situation exists with respect to a particular product within the same class or kind as merchandise that is the subject of an antidumping duty order or finding, or a countervailing duty order, to authorize the importation of additional quantities of such merchandise free of duties, estimated duty deposits, reporting requirements, and other restrictions, unless it determines that such imports will erode the pricing structure of domestic merchandise comparable to the class or kind of merchandise that is subject to such order or finding.
Requires the administering authority, whenever it finds that a short-supply petition contains adequate information, to determine: (1) if a short-supply situation exists in the United States with respect to a product; and (2) if an affirmative determination is made, the quantity of the product, if any, that may be imported into the United States without regard to the applicable antidumping or countervailing duty order. Requires the administering authority, if it determines that a short-supply situation does not exist because a U.S. producer states that it will supply the product in the quantity requested, and such producer fails to supply such product as promised, to grant a short-supply allowance for the quantity such producer failed to supply.