S 979 IS

To amend United States trade laws to address more effectively import crises, and for other purposes.

May 26, 2001

Mr. DURBIN (for himself, Mr. Rockefeller, Mr. Byrd, Mr. Hollings, Mr. Specter, and Ms. Mikulski) introduced the following bill; which was read twice and referred to the Committee on Finance

To amend United States trade laws to address more effectively import crises, and for other purposes.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the `Trade Law Reform Act of 2001'.

TITLE I--SAFEGUARD AMENDMENTS

SEC. 101. AMENDMENTS TO CHAPTER 1 OF TITLE II OF THE TRADE ACT OF 1974.

(a) TEST FOR POSITIVE ADJUSTMENTS TO IMPORT COMPETITION- Section 201(a) of the Trade Act of 1974 (19 U.S.C. 2251(a)) is amended by striking `be a substantial cause of serious injury, or the threat thereof,' and inserting `cause or threaten to cause serious injury'.

(b) INVESTIGATIONS AND DETERMINATIONS- Section 202 of such Act (19 U.S.C. 2252) is amended--

(1) in subsection (b)(1)(A), by striking `be a substantial cause of serious injury, or the threat thereof,' and inserting `cause or threaten to cause serious injury';

(2) by amending subsection (b)(1)(B) to read as follows:

`(B) For purposes of this section, the term `cause' refers to a cause that contributes significantly to serious injury, or the threat thereof, to the domestic industry but need not be equal to or greater than any other cause.';

(3) in subsection (c)--

(A) by amending paragraph (1)(A) to read as follows:

`(A) with respect to serious injury--

`(i) change in the level of sales, production, productivity, capacity utilization, profits and losses, and employment,

`(ii) the significant idling of productive facilities in the domestic industry,

`(iii) the inability of a significant number of firms to carry out domestic production operations at a reasonable level of profit, and

`(iv) significant unemployment or underemployment within the domestic industry;';

(B) in paragraph (1)(B)--

(i) in clause (iii) by striking `; and' and inserting `, and'; and

(ii) by inserting after clause (iii) the following:

`(iv) foreign production capacity, foreign inventories, the level of demand in third country markets, and the availability of other export markets to absorb any additional exports; and';

(C) by amending paragraph (1)(C) to read as follows:

`(C) with respect to cause--

`(i) the rate, amount, and timing of the increase in imports of the product concerned in absolute and relative terms, including whether there has been a substantial increase in imports over a short period of time, and

`(ii) the share of the domestic market taken by increased imports.';

(D) by redesignating paragraphs (3) through (6) as paragraphs (5) through (8), respectively;

(E) by striking paragraph (2) and inserting the following:

`(2) In making determinations under paragraph (1)(A) and (B), if domestic producers internally transfer, including to affiliated persons as defined in section 771(33) of the Tariff Act of 1930, significant production of the article like or directly competitive with the imported article for the production of a downstream article and sell significant production of the article like or directly competitive with the imported article in the merchant market, then the Commission, in determining market share and the factors affecting financial performance set forth in paragraph (1)(A) and (B), shall focus primarily on the merchant market for the article like or directly competitive with the imported article.

`(3) In making determinations under subsection (b), the Commission shall--

`(A) consider the condition of the domestic industry over the course of the relevant business cycle, but may not aggregate the causes of declining demand associated with a recession or economic downturn in the United States economy into a single cause of serious injury or threat of injury; and

`(B) examine factors other than imports which may cause or threaten to cause serious injury to the domestic industry.

The Commission shall include the results of its examination under subparagraph (B) in the report submitted by the Commission to the President under subsection (e).

`(4) In making determinations under subsection (b), the Commission shall consider whether any change in the volume of imports that has occurred since a petition under subsection (a) was filed or a request under subsection (b) was made is related to the pendency of the investigation, and if so,

the Commission may reduce the weight accorded to the data for the period after the petition under subsection (a) was filed or the request under subsection (b) was made in making its determination of serious injury, or the threat thereof.'; and

(F) in paragraph (5), as so redesignated--

(i) by striking `and (B)' and inserting `, (B), and (C)'; and

(ii) by striking `be a substantial cause of serious injury, or the threat thereof,' and inserting `cause or threaten to cause serious injury';

(4) in subsection (d)--

(A) in paragraph (1)(A)(ii), by striking `be, or likely to be a substantial cause of serious injury, or the threat thereof,' and inserting `cause, or be likely to cause, or threaten to cause, or be likely to threaten to cause, serious injury';

(B) in paragraph (1)(C), in the matter following clause (ii), by striking `a substantial cause of serious injury, or the threat thereof,' and inserting `causing or threatening to cause serious injury';

(C) by amending paragraph (2)(A) to read as follows:

`(2)(A) When a petition filed under subsection (a) or a request filed under subsection (b) alleges that critical circumstances exist and requests that provisional relief be provided under this subsection with respect to imports of the article identified in the petition or request, the Commission shall, not later than 45 days after the petition or request is filed, determine, on the basis of available information, whether--

`(i) there is clear evidence that increased imports (either actual or relative to domestic production) of the article are causing or threatening to cause serious injury to the domestic industry producing an article like or directly competitive with the imported article; and

`(ii) delay in taking action under this chapter would cause damage to that industry that would be difficult to repair.

In making the evaluation under clause (ii), the Commission should consider, among other factors that it considers relevant, the timing and volume of the imports, including whether there has been a substantial increase in imports over a short period of time, and any other circumstances indicating that delay in taking action under this chapter would cause damage to the industry that would be difficult to repair.'; and

(D) in paragraph (2)(D), by striking `30' and inserting `20'.

(c) PRESIDENTIAL DETERMINATIONS-

(1) ACTION BY PRESIDENT- Section 203(a) of the Trade Act of 1974 (19 U.S.C. 2253(a)) is amended--

(A) in paragraph (1)(A), by striking `and provide greater economic and social benefits than costs' and inserting `and will not have an adverse impact on the United States clearly greater than the benefits of such action';

(B) in paragraph (2)(F), by striking `compensation;' at the end of clause (iii) and inserting the following: `compensation,

except that the President shall give substantially greater weight to the factors set out in clause (i) than to those set out in clauses (ii) and (iii);'; and

(C) by amending paragraph (2)(I) to read as follows:

`(I) the potential for harm to the national security of the United States; and'.

(2) IMPLEMENTATION OF ACTION RECOMMENDED BY COMMISSION- (A) Section 203(c) of the Trade Act of 1974 (19 U.S.C. 2253(c)) is amended by striking `90' and inserting `60'.

(B) Section 152(c)(1) of the Trade Act of 1974 (19 U.S.C. 2192(c)(1)) is amended by striking `not counting any day which is excluded under section 154(b),' and inserting `counting all calendar days in the case of a resolution described in subsection (a)(1)(A), and not counting any day which is excluded under section 154(b) in the case of a resolution described in subsection (a)(1)(B),'.

(d) CONFORMING AMENDMENTS-

(1) Section 203(e)(6)(B) of the Trade Act of 1974 (19 U.S.C. 2253(e)(6)(B)) is amended by striking `substantially'.

(2) Section 264(c) of the Trade Act of 1974 (19 U.S.C. 2354(c)) is amended by striking `a substantial cause of serious injury or threat thereof' and inserting `causing or threatening to cause serious injury'.

(3) Section 154(b) of the Trade Act of 1974 (19 U.S.C. 2194(b)) is amended by striking the matter that precedes paragraph (1) and inserting the following:

`(b) The 60-day period referred to in section 203(c) and the 90-day period referred to in section 407(c)(2) shall be computed by excluding--'.

TITLE II--AMENDMENTS TO TITLE VII OF THE TARIFF ACT OF 1930

SEC. 201. CAPTIVE PRODUCTION.

Section 771(7)(C)(iv) of the Tariff Act of 1930 (19 U.S.C. 1677(7)(C)(iv)) is amended to read as follows:

`(iv) CAPTIVE PRODUCTION- If domestic producers transfer internally, including to affiliated persons as defined in paragraph (33), significant production of the domestic like product for the production of a downstream article and sell significant production of the domestic like product in the merchant market, then the Commission, in determining market share and the factors affecting financial performance set forth in clause (iii), shall focus primarily on the merchant market for the domestic like product.'.

SEC. 202. PRICE.

Section 771(7)(C)(ii) of the Tariff Act of 1930 (19 U.S.C. 1677(7)(C)(ii)) is amended by adding at the end the following flush sentence:

`The Commission shall not conclude that imports of the subject merchandise do not have a significant effect on prices merely because of the volume of imports of the subject merchandise.'.

SEC. 203. VULNERABILITY OF INDUSTRY.

Section 771(7)(C)(iii) of the Tariff Act of 1930 (19 U.S.C. 1677(7)(C)(iii)) is amended in the last sentence by striking the period at the end and inserting `, including whether the industry is vulnerable to the effects of imports of the subject merchandise.'.

SEC. 204. CAUSAL RELATIONSHIP BETWEEN IMPORTS AND INJURY.

Section 771(7)(E)(ii) of the Tariff Act of 1930 (19 U.S.C. 1677(7)(E)(ii)) is amended by adding at the end the following: `The Commission need not determine the significance of imports of the subject merchandise relative to other economic factors.'.

SEC. 205. PREVENTION OF CIRCUMVENTION.

Section 781(c) of the Tariff Act of 1930 (19 U.S.C. 1677j(c)) is amended by adding at the end the following new paragraph:

`(3) SPECIAL RULE- The administering authority shall apply paragraph (1) with respect to altered merchandise excluded from or not specifically included in the merchandise description used in an outstanding order or finding, if such application is not inconsistent with the affirmative determination of the Commission on which the order or finding is based.'.

SEC. 206. PERISHABLE AGRICULTURAL PRODUCTS.

(a) DEFINITION OF INDUSTRIES- Section 771(4)(A) of the Tariff Act of 1930 (19 U.S.C. 1677(4)(A)) is amended by adding at the end the following: `If the Commission determines that an agricultural product has a short shelf life and is a perishable product, the Commission shall treat the producers of the product in a defined period or season as the domestic industry. If the subheading under the Harmonized Tariff Schedules of the United States for an agricultural product has a 6- or 8-digit classification based on the period of time during the calendar year in which the product is harvested or imported, such periods of time constitute a defined period or season for purposes of this paragraph.'.

(b) DETERMINATION OF INJURY- Section 771(7)(D) of the Tariff Act of 1930 (19 U.S.C. 1677(7)(D)) is amended by adding at the end the following new clauses:

`(iii) In the case of an agricultural industry involving a perishable product with a short shelf life, if a request for seasonal evaluation has been made by the petitioners, the Commission shall consider the factors in subparagraph (C) on a seasonal basis during the period identified as relevant.

`(iv) In the case of agricultural products, partially picked or unpicked crops and abandoned acreage may be considered in lieu of other measures of capacity and capacity utilization.

`(v) The impact of other factors, such as weather, on agricultural production and producers shall not be weighed against the contribution of the imported subject merchandise to the condition of the domestic industry.'.

SEC. 207. FULL RECOGNITION OF SUBSIDY CONFERRED THROUGH PROVISION OF GOODS AND SERVICES AND PURCHASE OF GOODS.

Section 771(5)(E) of the Tariff Act of 1930 (19 U.S.C. 1677(5)(E)) is amended by adding at the end the following: `If transactions in the country which is the subject of the investigation or review do not reflect market conditions due to government action associated with provision of the good or service or purchase of the goods, determination of the adequacy of remuneration shall be through comparison with the most comparable market price elsewhere in the world.'.

TITLE III--STEEL IMPORT NOTIFICATION AND MONITORING; EARLY RELEASE OF IMPORT DATA

SEC. 301. STEEL IMPORT NOTIFICATION AND MONITORING PROGRAM.

(a) IN GENERAL- Not later than 30 days after the date of the enactment of this Act, the Secretary of Commerce, in consultation with the Secretary of the Treasury, shall establish and implement a steel import notification and monitoring program. The program shall include a requirement that any person importing a product classified under chapter 72 or 73 of the Harmonized Tariff Schedule of the United States obtain an import notification certificate before such products are entered into the United States.

(b) STEEL IMPORT NOTIFICATION CERTIFICATES-

(1) IN GENERAL- In order to obtain a steel import notification certificate, an importer shall submit to the Secretary of Commerce an application containing--

(A) the importer's name and address;

(B) the name and address of the supplier of the goods to be imported;

(C) the name and address of the producer of the goods to be imported;

(D) the country of origin of the goods;

(E) the country from which the goods are to be imported;

(F) the United States Customs port of entry where the goods will be entered;

(G) the expected date of entry of the goods into the United States;

(H) a description of the goods, including the classification of such goods under the Harmonized Tariff Schedule of the United States;

(I) the quantity (in kilograms and net tons) of the goods to be imported;

(J) the cost insurance freight (CIF) and free alongside ship (FAS) values of the goods to be entered;

(K) whether the goods are being entered for consumption or for entry into a bonded warehouse or foreign trade zone;

(L) a certification that the information furnished in the certificate application is correct; and

(M) any other information the Secretary of Commerce determines to be necessary and appropriate.

(2) ENTRY INTO CUSTOMS TERRITORY- In the case of merchandise classified under chapter 72 or 73 of the Harmonized Tariff Schedule of the United States that is initially entered into a bonded warehouse or foreign trade zone, a steel import notification certificate shall be required before the merchandise is entered into the customs territory of the United States.

(3) ISSUANCE OF STEEL IMPORT NOTIFICATION CERTIFICATE- The Secretary of Commerce shall issue a steel import notification certificate to any person who files an application that meets the requirements of this section. Such certificate shall be valid for a period of 30 days from the date of issuance.

(c) STATISTICAL INFORMATION-

(1) IN GENERAL- The Secretary of Commerce shall compile and publish on a weekly basis information described in paragraph (2).

(2) INFORMATION DESCRIBED- Information described in this paragraph means information obtained from steel import notification certificate applications concerning steel imported into the United States and includes with respect to such imports the Harmonized Tariff Schedule of the United States classification (to the tenth digit), the country of origin, the port of entry, quantity, value of steel imported, and whether the imports are entered for consumption or are entered into a bonded warehouse or foreign trade zone. Such information shall also be compiled in aggregate form and made publicly available by the Secretary of Commerce on a weekly basis by public posting through an Internet website. The information provided under this section shall be in addition to any information otherwise required by law.

(d) FEES- The Secretary of Commerce may prescribe reasonable fees and charges to defray the costs of carrying out the provisions of this section, including a fee for issuing a certificate under this section.

(e) SINGLE PRODUCER AND EXPORTER COUNTRIES- Notwithstanding any other provision of law, the Secretary of Commerce shall make publicly available all information required to be released pursuant to subsection (c), including information obtained regarding imports from a foreign producer or exporter that is the only producer or exporter of goods subject to this section from a foreign country.

(f) REGULATIONS- The Secretary of Commerce may prescribe such rules and regulations relating to the steel import notification and monitoring program as may be necessary to carry the provisions of this section.

SEC. 302. AMENDMENTS TO SECTION 332 OF THE TARIFF ACT OF 1930.

Section 332 of the Tariff Act of 1930 (19 U.S.C. 1332) is amended by adding at the end the following:

`(h)(1) Any entity, including a trade association, firm, certified or recognized union, or group of workers, which is representative of a domestic industry that produces an article that is like or directly competitive with an imported article, may file a request with the President pursuant to paragraph (2) for the monitoring of imports of such article under subsection (g).

`(2) If the request filed under paragraph (1) alleges that an article is being imported into the United States in such increased quantities as to cause serious injury, or threat thereof, to a domestic industry, the President, within 45 days after receiving the request, shall determine if monitoring is appropriate.

`(3) If the determination under paragraph (2) is affirmative, the President shall request, under subsection (g), the Commission to monitor and investigate the imports concerned for a period not to exceed 2 years.'.

SEC. 303. EARLY RELEASE OF IMPORT DATA.

In order to facilitate the early identification of potentially disruptive import surges, the Director of the Office of Management and Budget may grant an exception to the publication dates established for the release of data on United States international trade in goods and services in order to permit public access to preliminary international trade import data, if the Director notifies Congress of the early release of the data.

TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. TREATMENT OF CERTAIN STEEL IMPORTS.

(a) IN GENERAL- Any product described in subsection (b) that is manufactured in a country other than a country described in subsection (c) and that is melted and poured in a country that is described in subsection (c) may, for purposes of any bilateral agreement or arrangement relating to such product (including any terms related to such agreement or arrangement), be treated as if it were a product of the country described in subsection (c) in which it was melted and poured.

(b) PRODUCT DESCRIBED- A product described in this subsection means a product that is classified under chapter 72 or 73 of the Harmonized Tariff Schedule of the United States.

(c) COUNTRY DESCRIBED- A country described in this subsection means a country that is a party to a bilateral agreement or a quantitative restriction arrangement relating to a product described in subsection (b).

SEC. 402. CONSTRUCTION.

The amendments made by this Act shall not be construed to create any inference with respect to the interpretation of the provisions of law amended by this Act as such provisions were in effect before the enactment of this Act.

SEC. 403. APPLICATION TO GOODS FROM CANADA AND MEXICO.

Pursuant to section 1902 of the North American Free Trade Agreement and section 408 of the North American Free Trade Agreement Implementation Act, the amendments made by this Act shall apply to goods from Canada and Mexico.

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