19 U.S.C. § 2436 — Market disruption

Page 690 TITLE 19—CUSTOMS DUTIES § 2436 1 See References in Text note below. ditional periods, each not to exceed 3 years; if— (A) a satisfactory balance of concessions in trade and services has been maintained dur- ing the life of such agreement, and (B) the President determines that actual or foreseeable reductions in United States tariffs and nontariff barriers to trade result- ing from multilateral negotiations are satis- factorily reciprocated by the other party to the bilateral agreement; (2) provide that it is subject to suspension or termination at any time for national security reasons, or that the other provisions of such agreement shall not limit the rights of any party to take any action for the protection of its security interests; (3) include safeguard arrangements (A) pro- viding for prompt consultations whenever ei- ther actual or prospective imports cause or threaten to cause, or significantly contribute to, market disruption and (B) authorizing the imposition of such import restrictions as may be appropriate to prevent such market disrup- tion; (4) if the other party to the bilateral agree- ment is not a party to the Paris Convention for the Protection of Industrial Property, pro- vide rights for United States nationals with respect to patents and trademarks in such country not less than the rights specified in such convention; (5) if the other party to the bilateral agree- ment is not a party to the Universal Copyright Convention, provide rights for United States nationals with respect to copyrights in such country not less than the rights specified in such convention; (6) in the case of an agreement entered into or renewed after January 3, 1975, provide ar- rangements for the protection of industrial rights and processes; (7) provide arrangements for the settlement of commercial differences and disputes; (8) in the case of an agreement entered into or renewed after January 3, 1975, provide ar- rangements for the promotion of trade, which may include arrangements for the establish- ment or expansion of trade and tourist pro- motion offices, for facilitation of activities of governmental commercial officers, participa- tion in trade fairs and exhibits, and the send- ing of trade missions, and for facilitation of entry, establishment, and travel of commer- cial representatives; (9) provide for consultations for the purpose of reviewing the operation of the agreement and relevant aspects of relations between the United States and the other party; and (10) provide such other arrangements of a commercial nature as will promote the pur- poses of this chapter. (c) Congressional action An agreement referred to in subsection (a), and a proclamation referred to in section 2434(a) of this title implementing such agreement, shall take effect only if a joint resolution described in section 2191(b)(3) of this title that approves of the agreement referred to in subsection (a) is en- acted into law. (Pub. L. 93–618, title IV, § 405, Jan. 3, 1975, 88 Stat. 2061; Pub. L. 96–39, title XI, § 1106(f)(3), July 26, 1979, 93 Stat. 312; Pub. L. 101–382, title I, § 132(b)(1), Aug. 20, 1990, 104 Stat. 645.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a) and (b)(10), was in the original ‘‘this Act’’, meaning Pub. L. 93–618, Jan. 3, 1975, 88 Stat. 1978, which is classified principally to this chapter. For complete classification of this Act to the Code, see References in Text note set out under section 2101 of this title and Tables. AMENDMENTS 1990—Subsec. (c). Pub. L. 101–382 amended subsec. (c) generally. Prior to amendment, subsec. (c) read as fol- lows: ‘‘An agreement referred to in subsection (a) of this section, and a proclamation referred to in section 2434(a) of this title implementing such agreement, shall take effect only if (1) approved by the Congress by the adoption of a concurrent resolution referred to in sec- tion 2191 of this title, or (2) in the case of an agreement entered into before January 3, 1975, and a proclamation implementing such agreement, a resolution of dis- approval referred to in section 2192 of this title is not adopted during the 90-day period specified by section 2437(c)(2) of this title.’’ 1979—Subsec. (b)(8). Pub. L. 96–39 substituted ‘‘may include arrangements’’ for ‘‘may include those’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1979 AMENDMENT Amendment by Pub. L. 96–39 effective July 26, 1979, see section 1114 of Pub. L. 96–39, set out as an Effective Date note under section 2581 of this title. § 2436. Market disruption (a) Investigation by International Trade Commis- sion; report; publication (1) Upon the filing of a petition by an entity described in section 2252(a) of this title, upon re- quest of the President or the United States Trade Representative, upon resolution of either the Committee on Ways and Means of the House of Representatives or the Committee on Finance of the Senate, or on its own motion, the Inter- national Trade Commission (hereafter in this section referred to as the ‘‘Commission’’) shall promptly make an investigation to determine, with respect to imports of an article which is the product of a Communist country, whether market disruption exists with respect to an arti- cle produced by a domestic industry. (2) The provisions of subsections (a)(3), (b)(4),1 and (c)(4) of section 2252 of this title shall apply with respect to investigations by the Commis- sion under paragraph (1). (3) The Commission shall report to the Presi- dent its determination with respect to each in- vestigation under paragraph (1) and the basis therefor and shall include in each report any dissenting or separate views. If the Commission finds, as a result of its investigation, that mar- ket disruption exists with respect to an article produced by a domestic industry, it shall find the amount of the increase in, or imposition of, any duty or other import restriction on such ar- ticle which is necessary to prevent or remedy Page 691 TITLE 19—CUSTOMS DUTIES § 2436 such market disruption and shall include such finding in its report to the President. The Com- mission shall furnish to the President a tran- script of the hearings and any briefs which may have been submitted in connection with each in- vestigation. (4) The report of the Commission of its deter- mination with respect to an investigation under paragraph (1) shall be made at the earliest prac- ticable time, but not later than 3 months after the date on which the petition is filed (or the date on which the request or resolution is re- ceived or the motion is adopted, as the case may be). Upon making such report to the President, the Commission shall also promptly make pub- lic such report (with the exception of informa- tion which the Commission determines to be confidential) and shall cause a summary thereof to be published in the Federal Register. (b) Affirmative determination With respect to any affirmative determination of the Commission under subsection (a)— (1) such determination shall be treated as an affirmative determination made under section 2251(b) of this title (as in effect on the day be- fore the date of the enactment of the Omnibus Trade and Competitiveness Act of 1988); and (2) sections 2252 and 2253 of this title (as in effect on the day before the date of the enact- ment of such Act of 1988), rather than the pro- visions of part 1 of subchapter II of this chap- ter as amended by section 1401 of such Act of 1988, shall apply with respect to the taking of subsequent action, if any, by the President in response to such affirmative determination; except that— (A) the President may take action under such sections 2252 and 2253 of this title only with respect to imports from the country or countries involved of the article with respect to which the affirmative determination was made; and (B) if such action consists of, or includes, an orderly marketing agreement, such agreement shall be entered into within 60 days after the import relief determination date. (c) Products of Communist countries If, at any time, the President finds that there are reasonable grounds to believe, with respect to imports of an article which is the product of a Communist country, that market disruption exists with respect to an article produced by a domestic industry, he shall request the Commis- sion to initiate an investigation under sub- section (a). If the President further finds that emergency action is necessary, he may take ac- tion under sections 2252 and 2253 of this title re- ferred to in subsection (b) as if an affirmative determination of the Commission had been made under subsection (a). Any action taken by the President under the preceding sentence shall cease to apply (1) if a negative determination is made by the Commission under subsection (a) with respect to imports of such article, on the day on which the Commission’s report of such determination is submitted to the President, or (2) if an affirmative determination is made by the Commission under subsection (a) with re- spect to imports of such article, on the day on which the action taken by the President pursu- ant to such determination becomes effective. (d) Petitions to initiate consultations as provided for by safeguard arrangements (1) A petition may be filed with the President by an entity described in section 2252(a) of this title requesting the President to initiate con- sultations provided for by the safeguard ar- rangements of any agreement entered into under section 2435 of this title with respect to imports of an article which is the product of the country which is the other party to such agree- ment. (2) If the President determines that there are reasonable grounds to believe, with respect to imports of such article, that market disruption exists with respect to an article produced by a domestic industry, he shall initiate consulta- tions with such country with respect to such im- ports. (e) Definitions; factors determining existence of market disruption For purposes of this section— (1) The term ‘‘Communist country’’ means any country dominated or controlled by com- munism. (2)(A) Market disruption exists within a do- mestic industry whenever imports of an arti- cle, like or directly competitive with an arti- cle produced by such domestic industry, are increasing rapidly, either absolutely or rel- atively, so as to be a significant cause of ma- terial injury, or threat thereof, to such domes- tic industry. (B) For purposes of subparagraph (A): (i) Imports of an article shall be considered to be increasing rapidly if there has been a significant increase in such imports (either actual or relative to domestic production) during a recent period of time. (ii) The term ‘‘significant cause’’ refers to a cause which contributes significantly to the material injury of the domestic indus- try, but need not be equal to or greater than any other cause. (C) The Commission, in determining whether market disruption exists, shall consider, among other factors— (i) the volume of imports of the merchan- dise which is the subject of the investiga- tion; (ii) the effect of imports of the merchan- dise on prices in the United States for like or directly competitive articles; (iii) the impact of imports of such mer- chandise on domestic producers of like or di- rectly competitive articles; and (iv) evidence of disruptive pricing prac- tices, or other efforts to unfairly manage trade patterns. (Pub. L. 93–618, title IV, § 406, Jan. 3, 1975, 88 Stat. 2062; 1979 Reorg. Plan No. 3, § 1(b)(1), eff. Jan. 2, 1980, 44 F.R. 69273, 93 Stat. 1381; Pub. L. 100–418, title I, § 1411(a), (b), Aug. 23, 1988, 102 Stat. 1241, 1242; Pub. L. 106–36, title I, § 1001(a)(6), June 25, 1999, 113 Stat. 130.) Page 692 TITLE 19—CUSTOMS DUTIES § 2437 Editorial Notes REFERENCES IN TEXT Subsection (b)(4) of section 2252 of this title, referred to in subsec. (a)(2), was repealed by Pub. L. 103–465, title III, § 301(c), Dec. 8, 1994, 108 Stat. 4932. See section 2252(b)(3) of this title. The date of the enactment of the Omnibus Trade and Competitiveness Act of 1988, referred to in subsec. (b), is the date of enactment of Pub. L. 100–418, which was approved Aug. 23, 1988. Section 1401 of such Act of 1988, referred to in subsec. (b)(2), is section 1401 of Pub. L. 100–418, known as the Omnibus Trade and Competitiveness Act of 1988, which enacted section 2254 of this title, amended sections 1330, 2133, 2251 to 2253, 2274, 2354, and 2703 of this title, en- acted a provision set out as a note under section 2251 of this title, and amended a provision set out as a note under section 2112 of this title. AMENDMENTS 1999—Subsec. (e)(2)(B), (C). Pub. L. 106–36 realigned margins. 1988—Subsec. (a)(1). Pub. L. 100–418, § 1411(b)(1), sub- stituted ‘‘section 2252(a)’’ for ‘‘section 2251(a)(1)’’. Subsec. (a)(2). Pub. L. 100–418, § 1411(b)(2), substituted ‘‘subsections (a)(3), (b)(4), and (c)(4) of section 2252’’ for ‘‘subsections (a)(2), (b)(3), and (c) of section 2251’’. Subsec. (b). Pub. L. 100–418, § 1411(a)(1), amended sub- sec. (b) generally. Prior to amendment, subsec. (b) read as follows: ‘‘For purposes of sections 2252 and 2253 of this title, an affirmative determination of the Commis- sion under subsection (a) of this section shall be treat- ed as an affirmative determination under section 2251(b) of this title, except that— ‘‘(1) the President may take action under sections 2252 and 2253 of this title only with respect to imports from the country or countries involved of the article with respect to which the affirmative determination was made, and ‘‘(2) if such action consists of, or includes, an or- derly marketing agreement, such agreement shall be entered into within 60 days after the import relief de- termination date.’’ Subsec. (c). Pub. L. 100–418, § 1411(a)(2), inserted ‘‘re- ferred to in subsection (b)’’ after ‘‘sections 2252 and 2253 of this title’’. Subsec. (d)(1). Pub. L. 100–418, § 1411(b)(1), substituted ‘‘section 2252(a)’’ for ‘‘section 2251(a)(1)’’. Subsec. (e)(2). Pub. L. 100–418, § 1411(a)(3), designated existing provisions as subpar. (A) and added subpars. (B) and (C). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Pub. L. 100–418, title I, § 1411(c), Aug. 23, 1988, 102 Stat. 1242, provided that: ‘‘The amendments made by sub- sections (a) and (b) [amending this section] apply with respect to investigations initiated under section 406(a) of the Trade Act of 1974 [19 U.S.C. 2436(a)] on or after the date of the enactment of this Act [Aug. 23, 1988].’’ Executive Documents CHANGE OF NAME ‘‘United States Trade Representative’’ substituted for ‘‘Special Representative for Trade Negotiations’’ in subsec. (a)(1), pursuant to Reorg. Plan No. 3 of 1979, § 1(b)(1), 44 F.R. 69273, 93 Stat. 1381, eff. Jan. 2, 1980, as provided by section 1–107(a) of Ex. Ord. No. 12188, Jan. 2, 1980, 45 F.R. 993, set out as notes under section 2171 of this title. See, also, section 2171 of this title as amended by Pub. L. 97–456. § 2437. Procedure for Congressional approval or disapproval of extension of nondiscrim- inatory treatment and Presidential reports (a) Transmission of nondiscriminatory treatment documents to Congress Whenever the President issues a proclamation under section 2434 of this title extending non- discriminatory treatment to the products of any foreign country, he shall promptly transmit to the House of Representatives and to the Senate a document setting forth the proclamation and the agreement the proclamation proposes to im- plement, together with his reasons therefor. (b) Transmission of freedom of emigration docu- ments to Congress The President shall transmit to the House of Representatives and the Senate a document con- taining the initial report submitted by him under section 2432(b) or 2439(b) of this title with respect to a nonmarket economy country. On or before December 31 of each year, the President shall transmit to the House of Representatives and the Senate, a document containing the re- port required by section 2432(b) or 2439(b) of this title as the case may be, to be submitted on or before such December 31. (c) Effective date of proclamations and agree- ments; disapproval of reports (1) In the case of a document referred to in subsection (a), the proclamation set forth in the document may become effective and the agree- ment set forth in the document may enter into force and effect only if a joint resolution de- scribed in section 2191(b)(3) of this title that ap- proves of the extension of nondiscriminatory treatment to the products of the country con- cerned is enacted into law. (2) In the case of a document referred to in subsection (b) which contains a report sub- mitted by the President under section 2432(b) or 2439(b) of this title with respect to a nonmarket economy country, if, before the close of the 90- day period beginning on the day on which such document is delivered to the House of Rep- resentatives and to the Senate, a joint resolu- tion described in section 2192(a)(1)(B) of this title is enacted into law that disapproves of the report submitted by the President with respect to such country, then, beginning with the day after the end of the 60-day period beginning with the date of the enactment of such resolution of disapproval, (A) nondiscriminatory treatment shall not be in force with respect to the products of such country, and the products of such coun- try shall be dutiable at the rates set forth in rate column numbered 2 of the Harmonized Tar- iff Schedule of the United States, (B) such coun- try may not participate in any program of the Government of the United States which extends credit or credit guarantees or investment guar- antees, and (C) no commercial agreement may thereafter be concluded with such country under this subchapter. If the President vetoes the joint resolution, the joint resolution shall be treated as enacted into law before the end of the 90-day period under this paragraph if both Houses of Congress vote to override such veto on or before the later of the last day of such 90-day period or the last day of the 15-day period (excluding any