§1677i — Title 19 Customs Duties | U.S. Code

Summary

Allows a U.S. producer to ask the trade agency to watch a finished product if they think duties on a part caused makers to shift to making and exporting more of that finished product to the United States. The petition must name the finished product, the part used in it, and explain why the duties on the part likely caused the shift. The agency must decide within 14 days whether there is a reasonable chance U.S. imports of the finished product will rise because of such a shift and whether one of several past-monitoring or past-investigation conditions applies. If both tests are yes, the agency will publish the decision, send it to the Commission, and the decision cannot be reviewed in court. The Commission will monitor the finished product and report every quarter to the agency and the public. If imports rise 5 percent or more from one quarter to the next, the Commission will study the increase. The agency will use the reports to decide whether to start a formal investigation or to stop monitoring if imports are not rising and diversion is unlikely. Definitions: Component part — an imported item that met certain duty or agreement thresholds in the past 5 years and is routinely used as a main part. Downstream product — an imported manufactured article that includes a component part.

Title 19, §1677i

Customs Duties — Source: USLM XML via OLRC

(a)(1)A domestic producer of an article that is like a component part or a downstream product may petition the administering authority to designate a downstream product for monitoring under subsection (b). The petition shall specify—

(A)the downstream product,

(B)the component product incorporated into such downstream product, and

(C)the reasons for suspecting that the imposition of antidumping or countervailing duties has resulted in a diversion of exports of the component part into increased production and exportation to the United States of such downstream product.

(2)Within 14 days after receiving a petition submitted under paragraph (1), the administering authority shall determine—

(A)whether there is a reasonable likelihood that imports into the United States of the downstream product will increase as an indirect result of any diversion with respect to the component part, and

(B)whether—

(i)the component part is already subject to monitoring to aid in the enforcement of a bilateral arrangement (within the meaning of section 804 of the Trade and Tariff Act of 1984),

(ii)merchandise related to the component part and manufactured in the same foreign country in which the component part is manufactured has been the subject of a significant number of investigations suspended under section 1671c or 1673c of this title or countervailing or antidumping duty orders issued under this subtitle or section 1303 11 See References in Text note below. of this title, or

(iii)merchandise manufactured or exported by the manufacturer or exporter of the component part that is similar in description and use to the component part has been the subject of at least 2 investigations suspended under section 1671c or 1673c of this title or countervailing or antidumping duty orders issued under this subtitle or section 1303 1 of this title.

(3)In making a determination under paragraph (2)(A), the administering authority may, if appropriate, take into account such factors as—

(A)the value of the component part in relation to the value of the downstream product,

(B)the extent to which the component part has been substantially transformed as a result of its incorporation into the downstream product, and

(C)the relationship between the producers of component parts and producers of downstream products.

(4)The administering authority shall publish in the Federal Register notice of each determination made under paragraph (2) and, if the determination made under paragraph (2)(A) and a determination made under any subparagraph of paragraph (2)(B) are affirmative, shall transmit a copy of such determinations and the petition to the Commission.

(5)Notwithstanding any other provision of law, any determination made by the administering authority under paragraph (2) shall not be subject to judicial review.

(b)(1)If the determination made under subsection (a)(2)(A) and a determination made under any clause of subsection (a)(2)(B) with respect to a petition are affirmative, the Commission shall immediately commence monitoring of trade in the downstream product that is the subject of the determination made under subsection (a)(2)(A). If the Commission finds that imports of a downstream product being monitored increased during any calendar quarter by 5 percent or more over the preceding quarter, the Commission shall analyze that increase in the context of overall economic conditions in the product sector.

(2)The Commission shall make quarterly reports to the administering authority regarding the monitoring and analyses conducted under paragraph (1). The Commission shall make the reports available to the public.

(c)The administering authority shall review the information in the reports submitted by the Commission under subsection (b)(2) and shall—

(1)consider the information in determining whether to initiate an investigation under section 1671a(a) or 1673a(a) of this title regarding any downstream product, and

(2)request the Commission to cease monitoring any downstream product if the information indicates that imports into the United States are not increasing and there is no reasonable likelihood of diversion with respect to component parts.

(d)For purposes of this section—

(1)The term “component part” means any imported article that—

(A)during the 5-year period ending on the date on which the petition is filed under subsection (a), has been subject to—

(i)a countervailing or antidumping duty order issued under this subtitle or section 1303 1 of this title that requires the deposit of estimated countervailing or antidumping duties imposed at a rate of at least 15 percent ad valorem, or

(ii)an agreement entered into under section 1671c, 1673c, or 1303 1 of this title after a preliminary affirmative determination under section 1671b(b), 1673b(b)(1), or 1303 1 of this title was made by the administering authority which included a determination that the estimated net countervailable subsidy was at least 15 percent ad valorem or that the estimated average amount by which the normal value exceeded the export price (or the constructed export price) was at least 15 percent ad valorem, and

(B)because of its inherent characteristics, is routinely used as a major part, component, assembly, subassembly, or material in a downstream product.

(2)The term “downstream product” means any manufactured article—

(A)which is imported into the United States, and

(B)into which is incorporated any component part.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 804 of the Trade and Tariff Act of 1984, referred to in subsec. (a)(2)(B)(i), is section 804 of Pub. L. 98–573, which is set out as a note under section 2253 of this title. section 1303 of this title, referred to in subsecs. (a)(2)(B)(ii), (iii) and (d)(1)(A)(i), (ii), is defined in section 1677(26) of this title to mean section 1330 as in effect on the day before Jan. 1, 1995.

Amendments

1994—Subsec. (c)(1). Pub. L. 103–465, § 261(d)(1)(B)(iv), substituted “or 1673a(a)” for “, 1673a(a), or 1303”. Subsec. (d)(1)(A)(ii). Pub. L. 103–465, § 270(a)(1)(M), inserted “countervailable” before “subsidy”. Pub. L. 103–465, § 233(a)(1)(E), (2)(A)(vi), substituted “normal value” for “foreign market value” and “export price (or the constructed export price)” for “United States price”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1994 AmendmentAmendment by section 233(a)(1)(E), (2)(A)(vi) and 270(a)(1)(M) of Pub. L. 103–465 effective, except as otherwise provided, on the date on which the WTO Agreement enters into force with respect to the United States (Jan. 1, 1995), and applicable with respect to investigations, reviews, and inquiries initiated and petitions filed under specified provisions of this chapter after such date, see section 291 of Pub. L. 103–465, set out as a note under section 1671 of this title. Amendment by section 261(d)(1)(B)(iv) of Pub. L. 103–465 effective on the

Effective Date

of title II of Pub. L. 103–465, Jan. 1, 1995, see section 261(d)(2) of Pub. L. 103–465, set out as a note under section 1315 of this title.

§1677i Downstream Product Monitoring

Summary

Title 19, §1677i

Notes & Related Subsidiaries

Editorial Notes

References in Text

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata