SubtitleB - Relief from Injury Caused by Import Competition, Subsidies, Dumping, and Unfair Trade Practices
Chapter 1: Relief from Injury Caused by Import Competition - Requires petitions for import relief to:
(1) include a statement describing the specific purposes for which import relief is being sought;
(2) if critical circumstances are alleged to exist, include information supporting that allegation; and
(3) if desired by the petitioner, request the preparation of an industry adjustment plan.
Authorizes petitioners alleging import competition from a perishable product to request emergency action.
Requires the USTR, if the petitioner alleges that critical circumstances exist, to make a preliminary determination within 30 days on whether such circumstances are likely to exist.
Provides that the USTR, if the preliminary determination is affirmative:
(1) shall order the suspension of the liquidation of all articles subject to such determination; and
(2) may order the posting of a security deposit for the entry of articles subject to such suspension.
Sets forth the duration of such actions.
Prohibits taking such actions with respect to perishable products.
Declares that critical circumstances exist if a substantial increase in the quantity of imports of an article over a relatively short time has led to circumstances in which a delay in the taking effect of import relief would cause harm that would significantly impair the effectiveness of such relief.
Requires the USTR, if the petitioner requests an industry adjustment plan, to establish an industry advisory group which shall prepare the adjustment plan for the industry concerned and submit the plan to the ITC. Provides that such plan should contain:
(1) an assessment of the industry's current problems and a strategy to enhance its competitiveness;
(2) objectives and specific steps that could be undertaken to improve the industry's competitiveness; and
(3) actions that Federal agencies could take to help achieve those objectives and to remedy the dislocation to workers and communities caused by import competition.
Requires the USTR to try to obtain, on a confidential basis, information from workers and firms on:
(1) how the workers and firms intend to act upon the objectives and steps specified in the plan; and
(2) any other actions the workers or firms intend to take to foster such objectives.
Requires the USTR to transmit such information to the ITC, the Secretary of Labor, and the Secretary of Commerce on a confidential basis.
Requires the ITC to investigate whether an article is being imported in such increased quantities as to be a substantial cause of serious injury, or threat of injury, to the domestic industry producing an article like or directly competitive with the imported article upon:
(1) the filing of a petition;
(2) the request of the President or the USTR;
(3) resolution of either the House Ways and Means Committee or the Senate Finance Committee; or
(4) its own motion.
Sets forth economic factors that the ITC shall consider in making its determination.
Defines "domestic industry" for purposes of making such determination.
Requires the ITC, in the course of any such investigation, to:
(1) investigate and report on efforts by firms and workers in the industry to increase the industry's competitiveness;
(2) investigate any factor which may be contributing to increased imports of the article under investigation and notify the appropriate agency if the ITC has reason to believe that dumping is causing the increased imports; and
(3) hold public hearings on the subject of the investigation.
Requires the ITC, if it finds that serious injury or threat of serious injury exists, to:
(1) determine the import relief that is necessary to prevent or remedy that injury or threat; and
(2) if the petition alleged critical circumstances, determine if critical circumstances exist.
Requires the ITC to report its findings to the USTR within six months of the date the petition is filed.
Sets forth information to be included in the report, including a copy of the industry adjustment plan and an estimate of the effect of the recommended import relief on consumers and competitors in the domestic markets.
Requires the ITC, within 48 hours of finding that serious injury or the threat of serious injury exists with respect to any article, to notify the Secretary of Labor and the Secretary of Commerce of:
(1) the finding;
(2) the identity of the domestic producers and products within the scope of the finding; and
(3) all nonconfidential information obtained by the ITC that may be relevant to a determination of eligibility for adjustment assistance.
Prohibits another import relief investigation with respect to the same subject matter unless one year has passed since the ITC's report or the ITC determines that good cause for such repeat investigation exists.
Requires the USTR, after receiving an ITC report with an affirmative finding of injurious increased imports, to provide import relief (for up to five years) in order to prevent the injury and to facilitate the industry's orderly adjustment to competition, unless providing import relief is not in the national economic interest.
Authorizes the USTR to condition the provision of import relief on compliance with the industry adjustment plan.
Sets a 60-day deadline for the USTR to make such determinations.
Sets forth factors the USTR shall consider in determining whether to provide import relief.
Authorizes the USTR to request a supplemental report from the ITC which shall be provided by the ITC within 30 days.
Requires the USTR to submit to the Congress for review:
(1) the determination of what import relief to provide (and if such relief differs from the ITC's recommendation, the reasons for such difference) and its likely impact on U.S. agricultural exports;
(2) if the USTR determines that import relief is not in the national economic interest, the reasons for such determination; or
(3) notice of and the rationale for any other import relief action implemented by the USTR. Requires the implementation of the import relief recommended by the ITC if the Congress vetoes a USTR determination not to provide import relief or to provide import relief different from the import relief recommended by the ITC. Requires the import relief to be implemented within a specified time unless the USTR decides to negotiate an orderly marketing agreement.
Authorizes the USTR to negotiate orderly marketing agreements and, after such agreements take effect, to suspend or terminate any import relief previously provided.
Authorizes the USTR to provide other import relief if after being negotiated an orderly marketing agreement does not continue to be effective.
Provides for treating as an increase in duty the suspension of:
(1) certain tariff provisions with respect to an article; and
(2) the designation of any article as eligible for tariff preferences.
Prohibits such suspension from being made by the USTR or recommended by the ITC unless specified conditions are met.
Sets forth regulatory authority for providing import relief.
Provides for the extension, modification, and termination of import relief provisions.
Requires the ITC to review, and report annually to the USTR on, developments with respect to an industry receiving import relief so long as such relief remains in effect.
Requires the ITC to advise the USTR on the probable economic effect on the industry concerned of the extension, reduction, or termination of the import relief.
Prohibits the ITC from making an import relief investigation with respect to an article which has received import relief until two years after such relief was provided.
Authorizes the USTR to take import relief actions only after consideration of the relation of such actions to U.S. international obligations.
Imposes certain conditions on treating production located in a major geographic area as the "domestic industry" for import relief purposes.
Authorizes an import relief petitioner, who alleged injury from imports of a perishable product to file, in addition, a request with the Secretary of Agriculture that emergency action be taken with respect to that product.
Requires the Secretary of Agriculture to decide, within 20 days:
(1) whether there is reason to believe that the perishable product is being imported in such increased quantities as to be a substantial cause of, or threat of, serious injury to the competing domestic industry; and
(2) if there is such reason to believe, whether emergency action is warranted.
Provides for refiling after a specified time a request for emergency action if the Secretary denies the first request.
Requires the Secretary of Agriculture, if the Secretary decides to grant such request, to:
(1) determine the method and extent of emergency action to be imposed;
(2) notify the USTR of such request; and
(3) unless the USTR decides within seven days that such action is not in the national economic interest, order the Commissioner of Customs to take such action.
Defines emergency action as:
(1) an increase in, or the imposition of, a duty; and/or
(2) a modification of, or the imposition of, a quota on imports of such article.
Imposes different emergency actions for perishable products from Israel or certain Caribbean countries.
Provides for termination of an emergency action if:
(1) changed circumstances warrant such termination;
(2) the ITC reports that it did not find serious injury or the threat of serious injury to the industry;
(3) the denial of import relief becomes final; or
(4) other import relief provisions become effective.
Amends the Trade and Tariff Act of 1984 to add Chinese gooseberries to the definition of the term perishable products.
Establishes in the Treasury an Adjustment Assistance Trust Fund that shall consist of the funds generated by certain import provisions and by the public auctioning of import licenses.
Requires the amounts in the Trust Fund to be used for trade adjustment assistance for workers and firms.
Requires the Secretary of Labor to give expedited consideration to a petition for certification of eligibility for adjustment assistance by workers in a domestic industry which the ITC, within the three years preceding the petition, has determined was seriously injured by imports.
Requires the Secretary of Commerce to give expedited consideration to a petition for certification of eligibility for adjustment assistance by a domestic industry which the ITC, within the three years preceding the petition, has determined was seriously injured by imports.
Transfers from the President to the USTR the authority to take action in response to an ITC finding of market disruption with respect to imports from a non-market economy country (defined as a country dominated or controlled by communism).
Declares that market disruption exists within a domestic industry whenever an article is being imported in such increased quantities as to be an important cause of, or threat of, material injury to the competing domestic industry.
Sets forth factors the ITC shall consider in determining whether market disruption exists.
Authorizes the ITC to recommend, in addition to other relief, a variable tariff based on a comparison of average domestic producer prices and average import prices.
Authorizes the USTR to deny import relief with respect to imports from non-market economy countries only if the provision of such relief would have a serious negative impact on the domestic economy.
Chapter 2: Amendments to the Countervailing and Antidumping Duty Laws - Amends the Tariff Act of 1930 to provide that certain producers of raw agricultural products may be considered part of the industry producing processed agricultural products for purposes of bringing countervailing and antidumping duty complaints.
Sets forth the criteria such producers must meet.
Defines "material injury" for purposes of complaints involving imports of a raw agricultural product and products processed from such raw agricultural product.
Classifies a coalition or trade association which represents either processors or processors and producers as interested parties in such investigations.
Includes within the definition of domestic subsidy (and therefore subject to countervailing duties) the provision of capital, loans, or loan guarantees at preferential rates and the provision of goods or services on terms inconsistent with commercial considerations.
Requires the ITC, in determining whether material injury occurred in an antidumping or countervailing duty case, to assess cumulatively the volume and effect of imports from two or more countries of like products if such imports compete with each other and with like products of the domestic industry in the U.S. market and if such imports:
(1) are subject to any countervailing or antidumping duty; or
(2) during the preceding 12 months were subjected to a final order, suspension agreement, or quantitative restraint resulting from such an investigation.
Adds to the factors that the ITC must consider in determining whether threat of material injury exists:
(1) evidence of export targeting by a foreign government;
(2) the extent to which the United States is a focal point for exports because of market barriers in third countries; and
(3) in dumping cases, dumping findings in other countries against the same exporter.
Requires the ITC in such dumping cases to request information from the foreign exporter or U.S. importer on threat of material injury.
Authorizes the ITC to draw adverse inferences if such information is not produced.
Imposes special rules for determinations of the existence or threat of material injury involving fungible products.
Includes in the definition of "subsidy" (for antidumping and countervailing duty purposes) any resource input subsidy.
States that a "resource input subsidy" is found to exist if:
(1) (a) a product is provided or sold by a government-regulated or controlled entity within a country for input use within such country at a domestic price that is lower than the fair market value of the input product and is not freely available to U.S. producers; and (b) a product would, if sold at the fair market value, constitute a significant portion of the total cost of the manufacture or production of the merchandise in or for which the input product is used; or
(2) under specified circumstances, the right to remove or extract such product is provided or sold by a government or a government-regulated or controlled entity within a country.
Sets forth the method of calculating the amount of a resource input subsidy.
Defines "fair market value" and "input use".
Requires injury determinations by the ITC to be made in all countervailing duty investigations relating to the existence of resource input subsidies.
Requires the administering authority to adjust the foreign market value of an import if the administering authority determines in an antidumping investigation that:
(1) a dumped input product is incorporated into or used in the manufacture or production of the import subject to the investigation; and
(2) the manufacturer or producer of such import purchased the dumped input product for a price that is less than the adjusted foreign market value of that product.
Defines "dumped input product" to be merchandise subject to an antidumping duty order or to a specified international agreement.
Authorizes any domestic producer of an article that is like a "component part" or a "downstream product" to petition the administering authority to designate a downstream product for monitoring.
Defines "component part" to mean an import that:
(1) during the five years preceding the petition has been subject to certain countervailing or antidumping duty order or agreement; and
(2) is used routinely as a major part in other manufactured articles.
Defines "downstream product" to mean any import into which is incorporated any component part.
Sets forth information to be included in the petition.
Requires the administering authority, within 14 days of receiving the petition, to determine whether there is a reasonable likelihood that imports of the downstream product will increase as an indirect result of any diversion of such component parts.
Sets forth factors to be considered in making such determination.
Requires the administering authority to notify the ITC if such determination is affirmative.
Requires the ITC to begin monitoring the levels of trade in downstream products.
Requires the ITC to make quarterly reports based on such monitoring.
Requires the administering authority to:
(1) consider the reports in determining whether to initiate an antidumping or countervailing duty investigation on any downstream product; and
(2) request the ITC to stop monitoring such product if the reports indicate that imports are not increasing and there is no reasonable likelihood of diversionary dumping of component parts.
Creates a right to a private remedy for injury resulting from dumping.
Authorizes eligible parties to sue for damages in the Court of International Trade:
(1) any manufacturer of the dumped merchandise; and
(2) any exporter, importer, or consignee who knew or had reason to know that the merchandise was sold at less than fair value.
Provides that merchandise imported by or for the use of Federal agencies is not exempt from the imposition of countervailing or antidumping duties.
Changes the limits imposed on access to confidential information obtained by the administering authority.
Requires the administering authority to make all such information available under protective order.
Imposes a 14-day deadline for determining whether to release such information.
Prohibits the administering authority from considering confidential information in its investigation if the person submitting such information refuses to disclose it pursuant to a protective order.
Imposes certain other requirements on service of such information, notification of the submission of such information, and timely submissions.
Prohibits antidumping and countervailing duties from being treated as regular customs duties for drawback purposes.
Requires persons making submissions to the administering authority or the ITC in antidumping or countervailing duty proceedings to certify that such submission is accurate and complete to the best of that person's knowledge.
Chapter 3: Intellectual Property Rights - Makes unlawful the unauthorized importation or unauthorized sale within the United States after importation of articles that:
(1) infringe a valid and enforceable U.S. patent or copyright; or
(2) are made under, or by means of, a patented process.
Makes it unlawful to import or sell within the United States after importation articles that infringe a valid and enforceable U.S. trademark, if the manufacture or production of such article was unauthorized.
Makes it unlawful to import a semiconductor chip product in a manner that constitutes infringement of a registered mask work.
Declares that such prohibitions shall apply only if there is an existing or nascent U.S. industry relating to the articles or intellectual property.
Authorizes the ITC to terminate an investigation before determining whether there is a violation by issuing a consent order or on the basis of a settlement agreement.
Requires the ITC to make a determination with regard to a petition alleging unfair import practices within 90 days (150 days in more complicated cases) of the publication of notice of the investigation.
Authorizes the ITC to grant preliminary relief with respect to violations involving intellectual property to the same extent as authorized under the Federal Rules of Civil Procedure. Authorizes the ITC to issue cease and desist orders in addition to exclusion orders.
Increases the penalty for violations of such orders.
Transfers from the President to the USTR the authority to overrule for policy reasons ITC determinations of unfair import practices.
Provides for default judgments against nonrespondents in unfair import practice cases unless the ITC determines that specified circumstances preclude such judgments.
Authorizes the ITC to promulgate rules that establish sanctions for abuse of discovery and abuse of process.
Imposes the burden of proof on the petitioner in cases where the petitioner has previously been found in violation of the provision prohibiting unfair import practices and the petitioners is asking the ITC:
(1) to find that the petitioner is no longer violating the section; or
(2) for a modification or rescission of the penalty imposed on such petitioner.
Sets forth the grounds for granting such relief.
Prohibits disclosure (except to certain ITC and Customs Service employees) of confidential information submitted to the ITC during the course of an investigation without the consent of the petitioner.
Requires the USTR to prepare a list annually of those foreign countries that maintain the most significant barriers to market access for U.S. persons that rely on intellectual property protection.
Requires the USTR, in order to create such list, to:
(1) identify and analyze the market barriers of a country to certain intellectual property that is exported or licensed by U.S. persons that rely on intellectual property protection;
(2) estimate the trade-distorting impact on U.S. commerce of such country's acts, policies, or practices that are contained in the annual report on market barriers;
(3) decide whether the potential market in that country is substantial; and
(4) take into account certain other information submitted by persons who rely on intellectual property protection.
Designates countries which have the largest potential markets or have the most onerous market barriers as priority countries for negotiating purposes.
Authorizes the USTR to exempt a foreign country from such negotiations if negotiations would be detrimental to U.S. interests.
Requires the President to direct the USTR to enter into negotiations and consultations with priority countries according to a specified timetable in order to seek trade agreements which reduce or eliminate market barriers for U.S. persons who rely on intellectual property protection.
Authorizes the President, within five years of enactment of this Act, to enter into agreements which meet such objective.
Authorizes the President to take certain other actions if the President is not able to enter into such an agreement with a priority country within a specified time.
Requires the President to report to the Congress on a biennial basis on efforts to obtain market access in priority countries.
Sets forth information to be included in such report.
Requires the USTR to consult with the appropriate congressional committees, Federal agencies, private persons, and certain advisory committees:
(1) before identifying the market barriers, determining priority countries, and establishing the timetable;
(2) in conducting negotiations;
(3) in developing the report; and
(4) in determining certain other actions.
Requires the principle negotiating objectives with respect to intellectual property rights to be:
(1) to seek enactment and effective enforcement by foreign countries of laws that protect intellectual property; and
(2) to develop and strengthen international rules and dispute settlement procedures against trade-distorting practices arising from inadequate national protection and enforcement of intellectual property rights.