§1677i Downstream product monitoring

Summary

A U.S. maker that uses an imported part can ask the trade agency to watch a finished product for signs that duties on the part caused exporters to switch to shipping more of the finished product to the United States. The petition must name the finished product, the part used in it, and the reason for the concern. The agency has 14 days to decide if imports of the finished product are likely to rise because of such a shift and if one of three risk signs exists: the part is already monitored under a bilateral deal; related goods from the same country faced many suspended investigations or duty orders; or similar goods made or sold by the same maker/exporter faced at least two suspended investigations or duty orders. The agency can consider the part’s value compared to the finished product, how much the part is changed when used, and the relationship between the makers. The agency must publish its decision and, if both findings are yes, send the decision and petition to the U.S. International Trade Commission. That agency decision cannot be reviewed in court. If both findings are yes, the Commission must start monitoring right away. If imports of the watched product rise by 5 percent or more in any quarter versus the previous quarter, the Commission will study that increase in the context of the overall product sector. The Commission must send quarterly reports to the trade agency and make them public. The trade agency will use those reports when deciding whether to start an antidumping or countervailing duty investigation and can ask the Commission to stop monitoring if imports are not rising and diversion is unlikely. Definitions: component part — an imported item that in the past 5 years had a duty order or an agreement reflecting at least 15 percent ad valorem and is routinely used as a major part of a finished product; downstream product — any manufactured item imported into the United States that includes a component part.