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Text of the To amend the Tariff Act of 1930 to provide relief from antidumping and countervailing duty orders in cases of short ...

...cases of short supply.

This bill was introduced on June 28, 1994, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jun 28, 1994 (Introduced).

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HR 4664 IH

103d CONGRESS

2d Session

H. R. 4664

To amend the Tariff Act of 1930 to provide relief from antidumping and countervailing duty orders in cases of short supply.

IN THE HOUSE OF REPRESENTATIVES

June 28, 1994

Mr. HUTTO (for himself and Mr. PETERSON of Florida) introduced the following bill; which was read twice and referred to the Committee on Ways and Means


A BILL

To amend the Tariff Act of 1930 to provide relief from antidumping and countervailing duty orders in cases of short supply.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

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.’.