19 U.S.C. § 1677i — Downstream product monitoring

Page 417 TITLE 19—CUSTOMS DUTIES § 1677i 1 See References in Text note below. 1954’’, which for purposes of codification was translated as ‘‘title 26’’ thus requiring no change in text. 1984—Subsec. (a). Pub. L. 98–573 amended subsec. (a) generally, substituting provisions making interest pay- able on and after the date of publication of a counter- vailing or antidumping duty order under this subtitle or section 1303 of this title or the date of a finding under the Antidumping Act, 1921 for provisions making interest payable on and after the date on which notice of an affirmative determination by the Commission under section 1671d(b) or 1673d(b) of this title with re- spect to such merchandise was published. Subsec. (b). Pub. L. 98–573 amended subsec. (b) gen- erally, substituting provisions that the rate of interest payable under subsec. (a) for any period of time is the rate of interest established under section 6621 of title 26 for such period for provision that the rate at which such interest was payable would be 8 percent per annum or, if higher, the rate in effect under section 6621 of title 26 on the date on which the rate or amount of the duty was finally determined. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–573 applicable with respect to merchandise that is unliquidated on or after Nov. 4, 1984, see section 626(b)(4) of Pub. L. 98–573, set out as a note under section 1671 of this title. § 1677h. Drawback treatment For purposes of any law relating to the draw- back of customs duties, countervailing duties and antidumping duties imposed by this subtitle shall not be treated as being regular customs duties. (June 17, 1930, ch. 497, title VII, § 779, as added Pub. L. 98–573, title VI, § 622(a)(2), Oct. 30, 1984, 98 Stat. 3039; amended Pub. L. 100–418, title I, § 1334(a), (b)(1), Aug. 23, 1988, 102 Stat. 1209, 1210.) Editorial Notes AMENDMENTS 1988—Pub. L. 100–418 substituted ‘‘Drawback treat- ment’’ for ‘‘Drawbacks’’ in section catchline and ‘‘not be treated as being regular’’ for ‘‘be treated as any other’’ in text. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–418 applicable with re- spect to articles entered, or withdrawn from warehouse for consumption, on or after Aug. 23, 1988, see section 1337(d) of Pub. L. 100–418, set out as a note under sec- tion 1671 of this title. EFFECTIVE DATE Section effective Oct. 30, 1984, see section 626(a) of Pub. L. 98–573, set out as an Effective Date of 1984 Amendment note under section 1671 of this title. § 1677i. Downstream product monitoring (a) Petition requesting monitoring (1) In general A domestic producer of an article that is like a component part or a downstream prod- uct may petition the administering authority to designate a downstream product for moni- toring 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 im- position of antidumping or countervailing duties has resulted in a diversion of exports of the component part into increased pro- duction and exportation to the United States of such downstream product. (2) Determination regarding petition Within 14 days after receiving a petition sub- mitted under paragraph (1), the administering authority shall determine— (A) whether there is a reasonable likeli- hood 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 mean- ing of section 804 of the Trade and Tariff Act of 1984), (ii) merchandise related to the compo- nent 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 1 of this title, or (iii) merchandise manufactured or ex- ported by the manufacturer or exporter of the component part that is similar in de- scription and use to the component part has been the subject of at least 2 investiga- tions suspended under section 1671c or 1673c of this title or countervailing or anti- dumping duty orders issued under this sub- title or section 1303 1 of this title. (3) Factors to take into account In making a determination under paragraph (2)(A), the administering authority may, if ap- propriate, take into account such factors as— (A) the value of the component part in re- lation to the value of the downstream prod- uct, (B) the extent to which the component part has been substantially transformed as a result of its incorporation into the down- stream product, and (C) the relationship between the producers of component parts and producers of down- stream products. (4) Publication of determination The administering authority shall publish in the Federal Register notice of each determina- tion made under paragraph (2) and, if the de- termination 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) Determinations not subject to judicial re- view Notwithstanding any other provision of law, any determination made by the administering Page 418 TITLE 19—CUSTOMS DUTIES § 1677j 1 See References in Text note below. authority under paragraph (2) shall not be sub- ject to judicial review. (b) Monitoring by Commission (1) In general 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 in- creased during any calendar quarter by 5 per- cent or more over the preceding quarter, the Commission shall analyze that increase in the context of overall economic conditions in the product sector. (2) Reports The Commission shall make quarterly re- ports to the administering authority regarding the monitoring and analyses conducted under paragraph (1). The Commission shall make the reports available to the public. (c) Action on basis of monitoring reports 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 sec- tion 1671a(a) or 1673a(a) of this title regarding any downstream product, and (2) request the Commission to cease moni- toring any downstream product if the informa- tion indicates that imports into the United States are not increasing and there is no rea- sonable likelihood of diversion with respect to component parts. (d) Definitions 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 sub- section (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 anti- dumping duties imposed at a rate of at least 15 percent ad valorem, or (ii) an agreement entered into under sec- tion 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 admin- istering authority which included a deter- mination 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, compo- nent, 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 compo- nent part. (June 17, 1930, ch. 497, title VII, § 780, as added Pub. L. 100–418, title I, § 1320(a), Aug. 23, 1988, 102 Stat. 1189; amended Pub. L. 103–465, title II, §§ 233(a)(1)(E), (2)(A)(vi), 261(d)(1)(B)(iv), 270(a)(1)(M), Dec. 8, 1994, 108 Stat. 4898, 4910, 4917.) Editorial Notes REFERENCES IN TEXT Section 804 of the Trade and Tariff Act of 1984, re- ferred 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 sec- tion 1677(26) of this title to mean section 1330 as in ef- fect 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), in- serted ‘‘countervailable’’ before ‘‘subsidy’’. Pub. L. 103–465, § 233(a)(1)(E), (2)(A)(vi), substituted ‘‘normal value’’ for ‘‘foreign market value’’ and ‘‘ex- port price (or the constructed export price)’’ for ‘‘United States price’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1994 AMENDMENT Amendment by sections 233(a)(1)(E), (2)(A)(vi) and 270(a)(1)(M) of Pub. L. 103–465 effective, except as other- wise provided, on the date on which the WTO Agree- ment enters into force with respect to the United States (Jan. 1, 1995), and applicable with respect to in- vestigations, reviews, and inquiries initiated and peti- tions 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. § 1677j. Prevention of circumvention of anti- dumping and countervailing duty orders (a) Merchandise completed or assembled in United States (1) In general If— (A) merchandise sold in the United States is of the same class or kind as any other merchandise that is the subject of— (i) an antidumping duty order issued under section 1673e of this title, (ii) a finding issued under the Anti- dumping Act, 1921, or (iii) a countervailing duty order issued under section 1671e of this title or section 1303 1 of this title, (B) such merchandise sold in the United States is completed or assembled in the