Nonmarket Economy Overcapacity Reform Act
This bill requires the U.S. International Trade Commission (USITC) to consider additional factors in determining whether an industry in the United States is threatened with material injury by reason of imports or sales for importation of subject merchandise. In particular, the USITC must consider the effects of excess production capacity of subject merchandise from nonmarket economy countries.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6330 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 6330
To amend the Tariff Act of 1930 to provide for consideration of the
effect of excess production capacity in nonmarket economy countries to
determine threat of material injury to United States industry in
countervailing duty and antidumping duty investigations under title VII
of that Act.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 20, 2021
Mr. Higgins of New York introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Tariff Act of 1930 to provide for consideration of the
effect of excess production capacity in nonmarket economy countries to
determine threat of material injury to United States industry in
countervailing duty and antidumping duty investigations under title VII
of that Act.
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 ``Nonmarket Economy Overcapacity
Reform Act''.
SEC. 2. EFFECT OF EXCESS PRODUCTION CAPACITY IN NONMARKET ECONOMY
COUNTRIES TO DETERMINE THREAT OF MATERIAL INJURY TO
UNITED STATES INDUSTRY.
(a) In General.--Section 771(7)(F) of the Tariff Act of 1930 (19
U.S.C. 1677(7)(F)) is amended by adding at the end the following:
``(iv) Effect of excess production capacity
in nonmarket economy countries.--
``(I) In general.--In addition to
consideration of the relevant economic
factors set forth in clauses (i), (ii),
and (iii), in making a determination of
whether an industry in the United
States is threatened with material
injury by reason of imports (or sales
for importation) of subject merchandise
from a nonmarket economy country due to
excess production capacity, the
Commission shall consider--
``(aa) the actual or
potential market effects of the
excess production capacity and
the excess production capacity
in the country; and
``(bb) whether the excess
production capacity--
``(AA) is currently
causing or is likely in
the foreseeable future
to contribute to
adverse price effects
in the United States
market;
``(BB) is likely in
the foreseeable future
to contribute to rapid
and significant
increases in the volume
of imports of the
subject merchandise in
the United States
market at prices at
which the normal value
of the subject
merchandise exceeds the
export price or that
are subsidized; or
``(CC) otherwise
threatens to cause
material injury to the
United States domestic
industry.
``(II) Additional factors.--As part
of its consideration of the factors set
forth in items (aa) and (bb) of
subclause (I), the Commission shall
consider the following:
``(aa) Whether the excess
production capacity is related
to a lack of effective market
disciplines that have
contributed to increases in
such capacity.
``(bb) Whether the excess
production capacity exceeds or,
upon completion of projects
under construction to expand
such capacity, is projected to
imminently exceed 25 percent of
the excess production capacity
of the subject merchandise.
``(cc) Whether producers in
the country have demonstrated
an ability to increase exports
of the subject merchandise, as
evidenced by--
``(AA) an increase
in exports of the
subject merchandise or
related products to
third country markets;
``(BB) an annual
increase in the volume
of exports of the
subject merchandise or
related products that
is greater than 10
percent of the volume
of exports of the
subject merchandise or
related products in the
preceding calendar
year; or
``(CC) other
factors demonstrating
an ability of the
country to increase
exports of the subject
merchandise or related
products globally,
including to the United
States.
``(dd) Whether the excess
production capacity currently
or in the future would likely
contribute to--
``(AA) a
significant increase in
exports of the subject
merchandise or related
products globally,
including to the United
States;
``(BB) depression
or suppression of
prices of the subject
merchandise sold
globally, including in
the United States;
``(CC) reductions
in United States
investment or research
and development in
products of the same
class or kind as the
subject merchandise; or
``(DD) a
significant increase in
the United States
market share of the
subject merchandise as
compared to the average
share held by producers
of the subject
merchandise in the
country during the 3-
year period preceding
the date of the
determination under
clause (i).
``(ee) Whether any or all
of the factors described in
items (aa), (bb), (cc), or (dd)
are likely in the imminent
future, given the size and
extent of the current or
projected excess production
capacity and taking into
account current and future
levels of demand globally,
including in the United States.
``(ff) The standards of
threat of material injury
applied by the administering
authorities of the country to
imports of United States
products.
``(III) Additional factors with
respect to excess production
capacity.--As part of its consideration
of the factors set forth in items (aa)
and (bb) of subclause (I) with respect
to whether the excess production
capacity is real and imminent, the
Commission shall consider the
following:
``(aa) Whether current or
projected excess production
capacity of the subject
merchandise significantly
exceeds global demand,
particularly if the excess
production capacity results in
whole or in part from increases
in the excess production
capacity in the country and
thus creates an increased risk
the subject merchandise will be
imported into the United States
market.
``(bb) The likelihood that
the excess production capacity,
including excess production
capacity under construction in
the country, would be halted,
temporarily shut down, or
permanently closed in
accordance with market
conditions in order to prevent
the negative effects described
in subclauses (I) and (II), or
whether such actions would be
impractical given the levels of
investment, financial
commitments, employment costs,
or government policies
involved.
``(cc) Whether the excess
production capacity in the
country is planned as part of a
government industrial plan,
policy, or directive, or
benefits from significant
government subsidies, and
therefore is not subject to
market disciplines that would
restrain production or exports.
``(dd) Whether--
``(AA) related
products are subject to
a countervailing duty
investigation or order
under subtitle A or an
antidumping duty
investigation or order
under subtitle B; or
``(BB) related
products are subject to
a countervailing duty
investigation or order
or an antidumping duty
investigation or order
in third countries that
could lead to the
imposition of duties on
such products and
result in diversion of
increased exports of
such products to the
United States or other
countries.
``(ee) Whether, taking into
account the type of product,
technology, United States
production facilities, levels
of United States investment,
research and development costs,
product life cycle, and price
sensitivities, the United
States domestic industry is
especially vulnerable to
increased imports of the
subject merchandise so that
injury caused by prices of the
dumped or subsidized imports of
the subject merchandise likely
would occur imminently upon
entry into the United States.
``(IV) Definitions.--In this
clause:
``(aa) Excess production
capacity.--The term `excess
production capacity', with
respect to subject merchandise,
means production capacity of
the subject merchandise on a
global basis that exceeds
estimated domestic demand of
the subject merchandise by 25
percent or more or is
imminently likely to do so,
including through planned
increases in capacity under any
government industrial policies,
subsidy programs, production
targets, indigenous innovation
policies, or plans or
directives regarding the
development or construction of
such capacity.
``(bb) Related product.--
The term `related product',
with respect to subject
merchandise, means--
``(AA) any like or
directly related
product within the
scope of an
investigation relating
to the subject
merchandise under this
title;
``(BB) any upstream
product used in the
production of the
subject merchandise and
that could be used for
purposes of exports of
any like or directly
related product; or
``(CC) any
downstream product
manufactured used in
the production of the
subject merchandise
that could lead to
excess production
capacity and used for
purposes of exports of
any like or directly
related product.''.
(b) Effective Date.--The amendments made by subsection (a) take
effect on the date of the enactment of this Act and apply with respect
to investigations initiated under title VII of the Tariff Act of 1930
on or after such date of enactment.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Sponsor introductory remarks on measure. (CR E38)
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