II
119THCONGRESS
1
STSESSION S. 172
To clarify the country of origin of certain articles imported into the United
States for purposes of certain trade enforcement actions.
IN THE SENATE OF THE UNITED STATES
JANUARY21, 2025
Mr. S
COTTof Florida introduced the following bill; which was read twice and
referred to the Committee on Finance
A BILL
To clarify the country of origin of certain articles imported
into the United States for purposes of certain trade
enforcement actions.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Stopping Adversarial 4
Tariff Evasion Act’’. 5
VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S172.IS S172
kjohnson on DSK7ZCZBW3PROD with $$_JOB 2
•S 172 IS
SEC. 2. CLARIFICATION OF COUNTRY OF ORIGIN CRITERIA 1
FOR ENFORCEMENT ACTION UNDER TRADE 2
AGREEMENTS OR IN RESPONSE TO CERTAIN 3
FOREIGN TRADE PRACTICES. 4
Section 301(d) of the Trade Act of 1974 (19 U.S.C. 5
2411(d)) is amended by adding at the end the following: 6
‘‘(10)(A) Any action taken by the Trade Rep-7
resentative under this section, with respect to a for-8
eign adversary country, shall apply to any article 9
that is produced, manufactured, or that underwent 10
final assembly by a foreign adversary party or an 11
entity owned, controlled, directed, or operated by a 12
foreign adversary party, as if such article originated 13
in the foreign adversary country. 14
‘‘(B) In this paragraph: 15
‘‘(i) The term ‘control’ has the meaning 16
given that term in section 800.208 of title 31, 17
Code of Federal Regulations (as in effect on the 18
date of the enactment of the Stopping Adver-19
sarial Tariff Evasion Act). 20
‘‘(ii) The term ‘entity owned, controlled, 21
directed, or operated by a foreign adversary 22
party’ includes any entity for which, on any 23
date during the most recent 12-month period, 24
not less than 25 percent of the equity interests 25
in such entity are held directly or indirectly by 26
VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S172.IS S172
kjohnson on DSK7ZCZBW3PROD with $$_JOB 3
•S 172 IS
1 or more foreign adversary parties including 1
through— 2
‘‘(I) interests in co-investment vehi-3
cles, joint ventures, or similar arrange-4
ments; or 5
‘‘(II) a derivative financial instrument 6
or contractual arrangement between the 7
entity and a foreign adversary party, in-8
cluding any such instrument or contract 9
that seeks to replicate any financial return 10
with respect to such entity or interest in 11
such entity. 12
‘‘(iii) The term ‘foreign adversary country’ 13
means any of the following: 14
‘‘(I) The People’s Republic of China. 15
‘‘(II) The Russian Federation. 16
‘‘(III) The Islamic Republic of Iran. 17
‘‘(IV) The Democratic People’s Re-18
public of Korea. 19
‘‘(V) The Republic of Cuba. 20
‘‘(VI) The Bolivarian Republic of Ven-21
ezuela during any period of time during 22
which Nichola´s Maduro is President of the 23
Republic. 24
VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S172.IS S172
kjohnson on DSK7ZCZBW3PROD with $$_JOB 4
•S 172 IS
‘‘(iv) The term ‘foreign adversary party’ 1
means any of the following: 2
‘‘(I) The government of a foreign ad-3
versary country, including any agency, gov-4
ernment instrumentality, official, or agent 5
of such a government. 6
‘‘(II) Any entity organized under the 7
laws of a foreign adversary country (or any 8
political subdivision thereof). 9
‘‘(III) Any entity the headquarters of 10
which is located within a foreign adversary 11
country. 12
‘‘(IV) Any entity substantively in-13
volved in the industrial policies or military- 14
civil fusion strategy of the People’s Repub-15
lic of China, including by accepting fund-16
ing from, performing a service for, or re-17
ceiving a subsidy from the People’s Repub-18
lic of China related to such policies or 19
strategy.’’. 20
SEC. 3. CLARIFICATION OF COUNTRY OF ORIGIN CRITERIA 21
FOR ENFORCEMENT ACTION BY PRESIDENT 22
AFTER DETERMINATION OF IMPORT INJURY. 23
Section 203 of the Trade Act of 1974 (19 U.S.C. 24
2253) is amended by adding at the end the following: 25
VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S172.IS S172
kjohnson on DSK7ZCZBW3PROD with $$_JOB 5
•S 172 IS
‘‘(h) APPLICATION OFACTION TOFOREIGNADVER-1
SARYPARTIES.—(1) Any action taken under this section 2
shall apply to any article that is produced, manufactured, 3
or that underwent final assembly by a foreign adversary 4
party or an entity owned, controlled, directed, or operated 5
by a foreign adversary party, as if such article originated 6
in a foreign adversary country. 7
‘‘(2) In this subsection: 8
‘‘(A) The term ‘control’ has the meaning given 9
that term in section 800.208 of title 31, Code of 10
Federal Regulations (as in effect on the date of the 11
enactment of the Stopping Adversarial Tariff Eva-12
sion Act). 13
‘‘(B) The term ‘entity owned, controlled, di-14
rected, or operated by a foreign adversary party’ in-15
cludes any entity for which, on any date during the 16
most recent 12-month period, not less than 25 per-17
cent of the equity interests in such entity are held 18
directly or indirectly by 1 or more foreign adversary 19
parties including through— 20
‘‘(i) interests in co-investment vehicles, 21
joint ventures, or similar arrangements; or 22
‘‘(ii) a derivative financial instrument or 23
contractual arrangement between the entity and 24
a foreign adversary party, including any such 25
VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S172.IS S172
kjohnson on DSK7ZCZBW3PROD with $$_JOB 6
•S 172 IS
instrument or contract that seeks to replicate 1
any financial return with respect to such entity 2
or interest in such entity. 3
‘‘(C) The term ‘foreign adversary country’ 4
means any of the following: 5
‘‘(i) The People’s Republic of China. 6
‘‘(ii) The Russian Federation. 7
‘‘(iii) The Islamic Republic of Iran. 8
‘‘(iv) The Democratic People’s Republic of 9
Korea. 10
‘‘(v) The Republic of Cuba. 11
‘‘(vi) The Bolivarian Republic of Venezuela 12
during any period of time during which 13
Nichola´s Maduro is President of the Republic. 14
‘‘(D) The term ‘foreign adversary party’ means 15
any of the following: 16
‘‘(i) The government of a foreign adversary 17
country, including any agency, government in-18
strumentality, official, or agent of such a gov-19
ernment. 20
‘‘(ii) Any entity organized under the laws 21
of a foreign adversary country (or any political 22
subdivision thereof). 23
‘‘(iii) Any entity the headquarters of which 24
is located within a foreign adversary country. 25
VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S172.IS S172
kjohnson on DSK7ZCZBW3PROD with $$_JOB 7
•S 172 IS
‘‘(iv) Any entity substantively involved in 1
the industrial policies or military-civil fusion 2
strategy of the People’s Republic of China, in-3
cluding by accepting funding from, performing 4
a service for, or receiving a subsidy from the 5
People’s Republic of China related to such poli-6
cies or strategy.’’. 7
SEC. 4. CLARIFICATION OF COUNTRY OF ORIGIN CRITERIA 8
FOR ENFORCEMENT ACTION TO SAFEGUARD 9
NATIONAL SECURITY. 10
Section 232(c) of the Trade Expansion Act of 1962 11
(19 U.S.C. 1862(c)) is amended by adding at the end the 12
following: 13
‘‘(4)(A) Any action taken by the President 14
under paragraph (1) shall apply to any article that 15
is produced, manufactured, or that underwent final 16
assembly by a foreign adversary party or an entity 17
owned, controlled, directed, or operated by a foreign 18
adversary party, as if such article originated in a 19
foreign adversary country. 20
‘‘(B) For the purposes of this paragraph the 21
following definitions apply: 22
‘‘(i) The term ‘control’ has the meaning 23
given that term in section 800.208 of title 31, 24
Code of Federal Regulations (as in effect on the 25
VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S172.IS S172
kjohnson on DSK7ZCZBW3PROD with $$_JOB 8
•S 172 IS
date of the enactment of the Stopping Adver-1
sarial Tariff Evasion Act). 2
‘‘(ii) The term ‘entity owned, controlled, 3
directed, or operated by a foreign adversary 4
party’ includes any entity for which, on any 5
date during the most recent 12-month period, 6
not less than 25 percent of the equity interests 7
in such entity are held directly or indirectly by 8
1 or more foreign adversary parties including 9
through— 10
‘‘(I) interests in co-investment vehi-11
cles, joint ventures, or similar arrange-12
ments; or 13
‘‘(II) a derivative financial instrument 14
or contractual arrangement between the 15
entity and a foreign adversary party, in-16
cluding any such instrument or contract 17
that seeks to replicate any financial return 18
with respect to such entity or interest in 19
such entity. 20
‘‘(iii) The term ‘foreign adversary country’ 21
means any of the following: 22
‘‘(I) The People’s Republic of China. 23
‘‘(II) The Russian Federation. 24
‘‘(III) The Islamic Republic of Iran. 25
VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S172.IS S172
kjohnson on DSK7ZCZBW3PROD with $$_JOB 9
•S 172 IS
‘‘(IV) The Democratic People’s Re-1
public of Korea. 2
‘‘(V) The Republic of Cuba. 3
‘‘(VI) The Bolivarian Republic of Ven-4
ezuela during any period of time during 5
which Nichola´s Maduro is President of the 6
Republic. 7
‘‘(iv) The term ‘foreign adversary party’ 8
means any of the following: 9
‘‘(I) The government of a foreign ad-10
versary country, including any agency, gov-11
ernment instrumentality, official, or agent 12
of such a government. 13
‘‘(II) Any entity organized under the 14
laws of a foreign adversary country (or any 15
political subdivision thereof). 16
‘‘(III) Any entity the headquarters of 17
which is located within a foreign adversary 18
country. 19
‘‘(IV) Any entity substantively in-20
volved in the industrial policies or military- 21
civil fusion strategy of the People’s Repub-22
lic of China, including by accepting fund-23
ing from, performing a service for, or re-24
ceiving a subsidy from the People’s Repub-25
VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S172.IS S172
kjohnson on DSK7ZCZBW3PROD with $$_JOB 10
•S 172 IS
lic of China related to such policies or 1
strategy.’’. 2
Æ
VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6301 E:\BILLS\S172.IS S172
kjohnson on DSK7ZCZBW3PROD with $$_JOB