| 1 | 1 | | II |
|---|
| 2 | 2 | | 119THCONGRESS |
|---|
| 3 | 3 | | 1 |
|---|
| 4 | 4 | | STSESSION S. 172 |
|---|
| 5 | 5 | | To clarify the country of origin of certain articles imported into the United |
|---|
| 6 | 6 | | States for purposes of certain trade enforcement actions. |
|---|
| 7 | 7 | | IN THE SENATE OF THE UNITED STATES |
|---|
| 8 | 8 | | JANUARY21, 2025 |
|---|
| 9 | 9 | | Mr. S |
|---|
| 10 | 10 | | COTTof Florida introduced the following bill; which was read twice and |
|---|
| 11 | 11 | | referred to the Committee on Finance |
|---|
| 12 | 12 | | A BILL |
|---|
| 13 | 13 | | To clarify the country of origin of certain articles imported |
|---|
| 14 | 14 | | into the United States for purposes of certain trade |
|---|
| 15 | 15 | | enforcement actions. |
|---|
| 16 | 16 | | Be it enacted by the Senate and House of Representa-1 |
|---|
| 17 | 17 | | tives of the United States of America in Congress assembled, 2 |
|---|
| 18 | 18 | | SECTION 1. SHORT TITLE. 3 |
|---|
| 19 | 19 | | This Act may be cited as the ‘‘Stopping Adversarial 4 |
|---|
| 20 | 20 | | Tariff Evasion Act’’. 5 |
|---|
| 21 | 21 | | VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S172.IS S172 |
|---|
| 22 | 22 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 |
|---|
| 23 | 23 | | •S 172 IS |
|---|
| 24 | 24 | | SEC. 2. CLARIFICATION OF COUNTRY OF ORIGIN CRITERIA 1 |
|---|
| 25 | 25 | | FOR ENFORCEMENT ACTION UNDER TRADE 2 |
|---|
| 26 | 26 | | AGREEMENTS OR IN RESPONSE TO CERTAIN 3 |
|---|
| 27 | 27 | | FOREIGN TRADE PRACTICES. 4 |
|---|
| 28 | 28 | | Section 301(d) of the Trade Act of 1974 (19 U.S.C. 5 |
|---|
| 29 | 29 | | 2411(d)) is amended by adding at the end the following: 6 |
|---|
| 30 | 30 | | ‘‘(10)(A) Any action taken by the Trade Rep-7 |
|---|
| 31 | 31 | | resentative under this section, with respect to a for-8 |
|---|
| 32 | 32 | | eign adversary country, shall apply to any article 9 |
|---|
| 33 | 33 | | that is produced, manufactured, or that underwent 10 |
|---|
| 34 | 34 | | final assembly by a foreign adversary party or an 11 |
|---|
| 35 | 35 | | entity owned, controlled, directed, or operated by a 12 |
|---|
| 36 | 36 | | foreign adversary party, as if such article originated 13 |
|---|
| 37 | 37 | | in the foreign adversary country. 14 |
|---|
| 38 | 38 | | ‘‘(B) In this paragraph: 15 |
|---|
| 39 | 39 | | ‘‘(i) The term ‘control’ has the meaning 16 |
|---|
| 40 | 40 | | given that term in section 800.208 of title 31, 17 |
|---|
| 41 | 41 | | Code of Federal Regulations (as in effect on the 18 |
|---|
| 42 | 42 | | date of the enactment of the Stopping Adver-19 |
|---|
| 43 | 43 | | sarial Tariff Evasion Act). 20 |
|---|
| 44 | 44 | | ‘‘(ii) The term ‘entity owned, controlled, 21 |
|---|
| 45 | 45 | | directed, or operated by a foreign adversary 22 |
|---|
| 46 | 46 | | party’ includes any entity for which, on any 23 |
|---|
| 47 | 47 | | date during the most recent 12-month period, 24 |
|---|
| 48 | 48 | | not less than 25 percent of the equity interests 25 |
|---|
| 49 | 49 | | in such entity are held directly or indirectly by 26 |
|---|
| 50 | 50 | | VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S172.IS S172 |
|---|
| 51 | 51 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 |
|---|
| 52 | 52 | | •S 172 IS |
|---|
| 53 | 53 | | 1 or more foreign adversary parties including 1 |
|---|
| 54 | 54 | | through— 2 |
|---|
| 55 | 55 | | ‘‘(I) interests in co-investment vehi-3 |
|---|
| 56 | 56 | | cles, joint ventures, or similar arrange-4 |
|---|
| 57 | 57 | | ments; or 5 |
|---|
| 58 | 58 | | ‘‘(II) a derivative financial instrument 6 |
|---|
| 59 | 59 | | or contractual arrangement between the 7 |
|---|
| 60 | 60 | | entity and a foreign adversary party, in-8 |
|---|
| 61 | 61 | | cluding any such instrument or contract 9 |
|---|
| 62 | 62 | | that seeks to replicate any financial return 10 |
|---|
| 63 | 63 | | with respect to such entity or interest in 11 |
|---|
| 64 | 64 | | such entity. 12 |
|---|
| 65 | 65 | | ‘‘(iii) The term ‘foreign adversary country’ 13 |
|---|
| 66 | 66 | | means any of the following: 14 |
|---|
| 67 | 67 | | ‘‘(I) The People’s Republic of China. 15 |
|---|
| 68 | 68 | | ‘‘(II) The Russian Federation. 16 |
|---|
| 69 | 69 | | ‘‘(III) The Islamic Republic of Iran. 17 |
|---|
| 70 | 70 | | ‘‘(IV) The Democratic People’s Re-18 |
|---|
| 71 | 71 | | public of Korea. 19 |
|---|
| 72 | 72 | | ‘‘(V) The Republic of Cuba. 20 |
|---|
| 73 | 73 | | ‘‘(VI) The Bolivarian Republic of Ven-21 |
|---|
| 74 | 74 | | ezuela during any period of time during 22 |
|---|
| 75 | 75 | | which Nichola´s Maduro is President of the 23 |
|---|
| 76 | 76 | | Republic. 24 |
|---|
| 77 | 77 | | VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S172.IS S172 |
|---|
| 78 | 78 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 |
|---|
| 79 | 79 | | •S 172 IS |
|---|
| 80 | 80 | | ‘‘(iv) The term ‘foreign adversary party’ 1 |
|---|
| 81 | 81 | | means any of the following: 2 |
|---|
| 82 | 82 | | ‘‘(I) The government of a foreign ad-3 |
|---|
| 83 | 83 | | versary country, including any agency, gov-4 |
|---|
| 84 | 84 | | ernment instrumentality, official, or agent 5 |
|---|
| 85 | 85 | | of such a government. 6 |
|---|
| 86 | 86 | | ‘‘(II) Any entity organized under the 7 |
|---|
| 87 | 87 | | laws of a foreign adversary country (or any 8 |
|---|
| 88 | 88 | | political subdivision thereof). 9 |
|---|
| 89 | 89 | | ‘‘(III) Any entity the headquarters of 10 |
|---|
| 90 | 90 | | which is located within a foreign adversary 11 |
|---|
| 91 | 91 | | country. 12 |
|---|
| 92 | 92 | | ‘‘(IV) Any entity substantively in-13 |
|---|
| 93 | 93 | | volved in the industrial policies or military- 14 |
|---|
| 94 | 94 | | civil fusion strategy of the People’s Repub-15 |
|---|
| 95 | 95 | | lic of China, including by accepting fund-16 |
|---|
| 96 | 96 | | ing from, performing a service for, or re-17 |
|---|
| 97 | 97 | | ceiving a subsidy from the People’s Repub-18 |
|---|
| 98 | 98 | | lic of China related to such policies or 19 |
|---|
| 99 | 99 | | strategy.’’. 20 |
|---|
| 100 | 100 | | SEC. 3. CLARIFICATION OF COUNTRY OF ORIGIN CRITERIA 21 |
|---|
| 101 | 101 | | FOR ENFORCEMENT ACTION BY PRESIDENT 22 |
|---|
| 102 | 102 | | AFTER DETERMINATION OF IMPORT INJURY. 23 |
|---|
| 103 | 103 | | Section 203 of the Trade Act of 1974 (19 U.S.C. 24 |
|---|
| 104 | 104 | | 2253) is amended by adding at the end the following: 25 |
|---|
| 105 | 105 | | VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S172.IS S172 |
|---|
| 106 | 106 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 5 |
|---|
| 107 | 107 | | •S 172 IS |
|---|
| 108 | 108 | | ‘‘(h) APPLICATION OFACTION TOFOREIGNADVER-1 |
|---|
| 109 | 109 | | SARYPARTIES.—(1) Any action taken under this section 2 |
|---|
| 110 | 110 | | shall apply to any article that is produced, manufactured, 3 |
|---|
| 111 | 111 | | or that underwent final assembly by a foreign adversary 4 |
|---|
| 112 | 112 | | party or an entity owned, controlled, directed, or operated 5 |
|---|
| 113 | 113 | | by a foreign adversary party, as if such article originated 6 |
|---|
| 114 | 114 | | in a foreign adversary country. 7 |
|---|
| 115 | 115 | | ‘‘(2) In this subsection: 8 |
|---|
| 116 | 116 | | ‘‘(A) The term ‘control’ has the meaning given 9 |
|---|
| 117 | 117 | | that term in section 800.208 of title 31, Code of 10 |
|---|
| 118 | 118 | | Federal Regulations (as in effect on the date of the 11 |
|---|
| 119 | 119 | | enactment of the Stopping Adversarial Tariff Eva-12 |
|---|
| 120 | 120 | | sion Act). 13 |
|---|
| 121 | 121 | | ‘‘(B) The term ‘entity owned, controlled, di-14 |
|---|
| 122 | 122 | | rected, or operated by a foreign adversary party’ in-15 |
|---|
| 123 | 123 | | cludes any entity for which, on any date during the 16 |
|---|
| 124 | 124 | | most recent 12-month period, not less than 25 per-17 |
|---|
| 125 | 125 | | cent of the equity interests in such entity are held 18 |
|---|
| 126 | 126 | | directly or indirectly by 1 or more foreign adversary 19 |
|---|
| 127 | 127 | | parties including through— 20 |
|---|
| 128 | 128 | | ‘‘(i) interests in co-investment vehicles, 21 |
|---|
| 129 | 129 | | joint ventures, or similar arrangements; or 22 |
|---|
| 130 | 130 | | ‘‘(ii) a derivative financial instrument or 23 |
|---|
| 131 | 131 | | contractual arrangement between the entity and 24 |
|---|
| 132 | 132 | | a foreign adversary party, including any such 25 |
|---|
| 133 | 133 | | VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S172.IS S172 |
|---|
| 134 | 134 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 6 |
|---|
| 135 | 135 | | •S 172 IS |
|---|
| 136 | 136 | | instrument or contract that seeks to replicate 1 |
|---|
| 137 | 137 | | any financial return with respect to such entity 2 |
|---|
| 138 | 138 | | or interest in such entity. 3 |
|---|
| 139 | 139 | | ‘‘(C) The term ‘foreign adversary country’ 4 |
|---|
| 140 | 140 | | means any of the following: 5 |
|---|
| 141 | 141 | | ‘‘(i) The People’s Republic of China. 6 |
|---|
| 142 | 142 | | ‘‘(ii) The Russian Federation. 7 |
|---|
| 143 | 143 | | ‘‘(iii) The Islamic Republic of Iran. 8 |
|---|
| 144 | 144 | | ‘‘(iv) The Democratic People’s Republic of 9 |
|---|
| 145 | 145 | | Korea. 10 |
|---|
| 146 | 146 | | ‘‘(v) The Republic of Cuba. 11 |
|---|
| 147 | 147 | | ‘‘(vi) The Bolivarian Republic of Venezuela 12 |
|---|
| 148 | 148 | | during any period of time during which 13 |
|---|
| 149 | 149 | | Nichola´s Maduro is President of the Republic. 14 |
|---|
| 150 | 150 | | ‘‘(D) The term ‘foreign adversary party’ means 15 |
|---|
| 151 | 151 | | any of the following: 16 |
|---|
| 152 | 152 | | ‘‘(i) The government of a foreign adversary 17 |
|---|
| 153 | 153 | | country, including any agency, government in-18 |
|---|
| 154 | 154 | | strumentality, official, or agent of such a gov-19 |
|---|
| 155 | 155 | | ernment. 20 |
|---|
| 156 | 156 | | ‘‘(ii) Any entity organized under the laws 21 |
|---|
| 157 | 157 | | of a foreign adversary country (or any political 22 |
|---|
| 158 | 158 | | subdivision thereof). 23 |
|---|
| 159 | 159 | | ‘‘(iii) Any entity the headquarters of which 24 |
|---|
| 160 | 160 | | is located within a foreign adversary country. 25 |
|---|
| 161 | 161 | | VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S172.IS S172 |
|---|
| 162 | 162 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 7 |
|---|
| 163 | 163 | | •S 172 IS |
|---|
| 164 | 164 | | ‘‘(iv) Any entity substantively involved in 1 |
|---|
| 165 | 165 | | the industrial policies or military-civil fusion 2 |
|---|
| 166 | 166 | | strategy of the People’s Republic of China, in-3 |
|---|
| 167 | 167 | | cluding by accepting funding from, performing 4 |
|---|
| 168 | 168 | | a service for, or receiving a subsidy from the 5 |
|---|
| 169 | 169 | | People’s Republic of China related to such poli-6 |
|---|
| 170 | 170 | | cies or strategy.’’. 7 |
|---|
| 171 | 171 | | SEC. 4. CLARIFICATION OF COUNTRY OF ORIGIN CRITERIA 8 |
|---|
| 172 | 172 | | FOR ENFORCEMENT ACTION TO SAFEGUARD 9 |
|---|
| 173 | 173 | | NATIONAL SECURITY. 10 |
|---|
| 174 | 174 | | Section 232(c) of the Trade Expansion Act of 1962 11 |
|---|
| 175 | 175 | | (19 U.S.C. 1862(c)) is amended by adding at the end the 12 |
|---|
| 176 | 176 | | following: 13 |
|---|
| 177 | 177 | | ‘‘(4)(A) Any action taken by the President 14 |
|---|
| 178 | 178 | | under paragraph (1) shall apply to any article that 15 |
|---|
| 179 | 179 | | is produced, manufactured, or that underwent final 16 |
|---|
| 180 | 180 | | assembly by a foreign adversary party or an entity 17 |
|---|
| 181 | 181 | | owned, controlled, directed, or operated by a foreign 18 |
|---|
| 182 | 182 | | adversary party, as if such article originated in a 19 |
|---|
| 183 | 183 | | foreign adversary country. 20 |
|---|
| 184 | 184 | | ‘‘(B) For the purposes of this paragraph the 21 |
|---|
| 185 | 185 | | following definitions apply: 22 |
|---|
| 186 | 186 | | ‘‘(i) The term ‘control’ has the meaning 23 |
|---|
| 187 | 187 | | given that term in section 800.208 of title 31, 24 |
|---|
| 188 | 188 | | Code of Federal Regulations (as in effect on the 25 |
|---|
| 189 | 189 | | VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S172.IS S172 |
|---|
| 190 | 190 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 8 |
|---|
| 191 | 191 | | •S 172 IS |
|---|
| 192 | 192 | | date of the enactment of the Stopping Adver-1 |
|---|
| 193 | 193 | | sarial Tariff Evasion Act). 2 |
|---|
| 194 | 194 | | ‘‘(ii) The term ‘entity owned, controlled, 3 |
|---|
| 195 | 195 | | directed, or operated by a foreign adversary 4 |
|---|
| 196 | 196 | | party’ includes any entity for which, on any 5 |
|---|
| 197 | 197 | | date during the most recent 12-month period, 6 |
|---|
| 198 | 198 | | not less than 25 percent of the equity interests 7 |
|---|
| 199 | 199 | | in such entity are held directly or indirectly by 8 |
|---|
| 200 | 200 | | 1 or more foreign adversary parties including 9 |
|---|
| 201 | 201 | | through— 10 |
|---|
| 202 | 202 | | ‘‘(I) interests in co-investment vehi-11 |
|---|
| 203 | 203 | | cles, joint ventures, or similar arrange-12 |
|---|
| 204 | 204 | | ments; or 13 |
|---|
| 205 | 205 | | ‘‘(II) a derivative financial instrument 14 |
|---|
| 206 | 206 | | or contractual arrangement between the 15 |
|---|
| 207 | 207 | | entity and a foreign adversary party, in-16 |
|---|
| 208 | 208 | | cluding any such instrument or contract 17 |
|---|
| 209 | 209 | | that seeks to replicate any financial return 18 |
|---|
| 210 | 210 | | with respect to such entity or interest in 19 |
|---|
| 211 | 211 | | such entity. 20 |
|---|
| 212 | 212 | | ‘‘(iii) The term ‘foreign adversary country’ 21 |
|---|
| 213 | 213 | | means any of the following: 22 |
|---|
| 214 | 214 | | ‘‘(I) The People’s Republic of China. 23 |
|---|
| 215 | 215 | | ‘‘(II) The Russian Federation. 24 |
|---|
| 216 | 216 | | ‘‘(III) The Islamic Republic of Iran. 25 |
|---|
| 217 | 217 | | VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S172.IS S172 |
|---|
| 218 | 218 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 9 |
|---|
| 219 | 219 | | •S 172 IS |
|---|
| 220 | 220 | | ‘‘(IV) The Democratic People’s Re-1 |
|---|
| 221 | 221 | | public of Korea. 2 |
|---|
| 222 | 222 | | ‘‘(V) The Republic of Cuba. 3 |
|---|
| 223 | 223 | | ‘‘(VI) The Bolivarian Republic of Ven-4 |
|---|
| 224 | 224 | | ezuela during any period of time during 5 |
|---|
| 225 | 225 | | which Nichola´s Maduro is President of the 6 |
|---|
| 226 | 226 | | Republic. 7 |
|---|
| 227 | 227 | | ‘‘(iv) The term ‘foreign adversary party’ 8 |
|---|
| 228 | 228 | | means any of the following: 9 |
|---|
| 229 | 229 | | ‘‘(I) The government of a foreign ad-10 |
|---|
| 230 | 230 | | versary country, including any agency, gov-11 |
|---|
| 231 | 231 | | ernment instrumentality, official, or agent 12 |
|---|
| 232 | 232 | | of such a government. 13 |
|---|
| 233 | 233 | | ‘‘(II) Any entity organized under the 14 |
|---|
| 234 | 234 | | laws of a foreign adversary country (or any 15 |
|---|
| 235 | 235 | | political subdivision thereof). 16 |
|---|
| 236 | 236 | | ‘‘(III) Any entity the headquarters of 17 |
|---|
| 237 | 237 | | which is located within a foreign adversary 18 |
|---|
| 238 | 238 | | country. 19 |
|---|
| 239 | 239 | | ‘‘(IV) Any entity substantively in-20 |
|---|
| 240 | 240 | | volved in the industrial policies or military- 21 |
|---|
| 241 | 241 | | civil fusion strategy of the People’s Repub-22 |
|---|
| 242 | 242 | | lic of China, including by accepting fund-23 |
|---|
| 243 | 243 | | ing from, performing a service for, or re-24 |
|---|
| 244 | 244 | | ceiving a subsidy from the People’s Repub-25 |
|---|
| 245 | 245 | | VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S172.IS S172 |
|---|
| 246 | 246 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 10 |
|---|
| 247 | 247 | | •S 172 IS |
|---|
| 248 | 248 | | lic of China related to such policies or 1 |
|---|
| 249 | 249 | | strategy.’’. 2 |
|---|
| 250 | 250 | | Æ |
|---|
| 251 | 251 | | VerDate Sep 11 2014 03:37 Feb 15, 2025 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6301 E:\BILLS\S172.IS S172 |
|---|
| 252 | 252 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB |
|---|