19 U.S.C. § 3571 — Subsidies enforcement

Page 878 TITLE 19—CUSTOMS DUTIES § 3571 drawal from warehouse for consumption. Inter- est on underpayments of amounts required to be deposited as countervailing duties shall be paid in accordance with section 1677g of this title. (Pub. L. 103–465, title I, § 137, Dec. 8, 1994, 108 Stat. 4842.) SUBCHAPTER II—ENFORCEMENT OF UNITED STATES RIGHTS UNDER SUB- SIDIES AGREEMENT § 3571. Subsidies enforcement (a) Assistance regarding multilateral subsidy remedies The administering authority shall provide in- formation to the public upon request, and, to the extent feasible, assistance and advice to in- terested parties concerning— (1) remedies and benefits available under rel- evant provisions of the Subsidies Agreement, and (2) the procedures relating to such remedies and benefits. (b) Prohibited subsidies (1) Notification of Trade Representative If the administering authority determines pursuant to title VII of the Tariff Act of 1930 [19 U.S.C. 1671 et seq.] that a class or kind of merchandise is benefiting from a subsidy which is prohibited under Article 3 of the Sub- sidies Agreement, the administering authority shall notify the Trade Representative and shall provide the Trade Representative with the information upon which the administering authority based its determination. (2) Request by interested party regarding pro- hibited subsidy An interested party may request that the administering authority determine if there is reason to believe that merchandise produced in a WTO member country is benefiting from a subsidy which is prohibited under Article 3 of the Subsidies Agreement. The request shall contain such information as the administering authority may require to support the allega- tions contained in the request. If the admin- istering authority, after analyzing the request and other information reasonably available to the administering authority, determines that there is reason to believe that such merchan- dise is benefiting from a subsidy which is pro- hibited under Article 3 of the Subsidies Agree- ment, the administering authority shall so no- tify the Trade Representative, and shall in- clude supporting information with the notifi- cation. (c) Subsidies actionable under Agreement (1) In general If the administering authority determines pursuant to title VII of the Tariff Act of 1930 [19 U.S.C. 1671 et seq.] that a class or kind of merchandise is benefiting from a subsidy de- scribed in Article 6.1 of the Subsidies Agree- ment, the administering authority shall notify the Trade Representative, and shall provide the Trade Representative with the informa- tion upon which the administering authority based its determination. (2) Request by interested party regarding ad- verse effects An interested party may request the admin- istering authority to determine if there is rea- son to believe that a subsidy which is action- able under the Subsidies Agreement is causing adverse effects. The request shall contain such information as the administering authority may require to support the allegations con- tained in the request. At the request of the ad- ministering authority, the Commission shall assist the administering authority in ana- lyzing the information pertaining to the exist- ence of such adverse effects. If the admin- istering authority, after analyzing the request and other information reasonably available to the administering authority, determines that there is reason to believe that a subsidy which is actionable under the Subsidies Agreement is causing adverse effects, the administering au- thority shall so notify the Trade Representa- tive, and shall include supporting information with the notification. (d) Initiation of section 2411 investigation On the basis of the notification and informa- tion provided by the administering authority pursuant to subsection (b) or (c), such other in- formation as the Trade Representative may have or obtain, and where applicable, after con- sultation with an interested party referred to in subsection (b)(2) or (c)(2), the Trade Representa- tive shall, unless such interested party objects, determine as expeditiously as possible, in ac- cordance with the procedures in section 302(b)(1) of the Trade Act of 1974 (19 U.S.C. 2412(b)(1)), whether to initiate an investigation pursuant to title III of that Act (19 U.S.C. 2411 et seq.). At the request of the Trade Representative, the ad- ministering authority and the Commission shall assist the Trade Representative in an investiga- tion initiated pursuant to this subsection. (e) Nonactionable subsidies (1) Compliance with Article 8 of the Subsidies Agreement (A) Monitoring In order to monitor whether a subsidy meets the conditions and criteria described in Article 8.2 of the Subsidies Agreement and is nonactionable, the Trade Representa- tive shall provide the administering author- ity on a timely basis with any information submitted or report made pursuant to Arti- cle 8.3 or 8.4 of the Subsidies Agreement re- garding a notified subsidy program. The ad- ministering authority shall review such in- formation and reports, and where appro- priate, shall recommend to the Trade Rep- resentative that the Trade Representative seek pursuant to Article 8.3 or 8.4 of the Sub- sidies Agreement additional information re- garding the notified subsidy program or a subsidy granted pursuant to the notified subsidy program. If the administering au- thority has reason to believe that a viola- tion of Article 8 of the Subsidies Agreement exists, the administering authority shall so notify the Trade Representative, and shall include supporting information with the no- tification. Page 879 TITLE 19—CUSTOMS DUTIES § 3571 (B) Request by interested party regarding violation of Article 8 An interested party may request the ad- ministering authority to determine if there is reason to believe that a violation of Arti- cle 8 of the Subsidies Agreement exists. The request shall contain such information as the administering authority may require to support the allegations contained in the re- quest. If the administering authority, after analyzing the request and other information reasonably available to the administering authority, determines that additional infor- mation is needed, the administering author- ity shall recommend to the Trade Represent- ative that the Trade Representative seek, pursuant to Article 8.3 or 8.4 of the Subsidies Agreement, additional information regard- ing the particular notified subsidy program or a subsidy granted pursuant to the notified subsidy program. If the administering au- thority determines that there is reason to believe that a violation of Article 8 of the Subsidies Agreement exists, the admin- istering authority shall so notify the Trade Representative, and shall include supporting information with the notification. (C) Action by Trade Representative (i) If the Trade Representative, on the basis of the notification and information provided by the administering authority pursuant to subparagraph (A) or (B), and such other information as the Trade Rep- resentative may have or obtain, and after consulting with the interested party referred to in subparagraph (B) and appropriate do- mestic industries, determines that there is reason to believe that a violation of Article 8 of the Subsidies Agreement exists, the Trade Representative shall invoke the proce- dures of Article 8.4 or 8.5 of the Subsidies Agreement. (ii) For purposes of clause (i), the Trade Representative shall determine that there is reason to believe that a violation of Article 8 exists in any case in which the Trade Rep- resentative determines that a notified sub- sidy program or a subsidy granted pursuant to a notified subsidy program does not sat- isfy the conditions and criteria required for a nonactionable subsidy program under this Act, the Subsidies Agreement, and the state- ment of administrative action approved under section 3511(a) of this title. (D) Notification of administering authority The Trade Representative shall notify the administering authority whenever a viola- tion of Article 8 of the Subsidies Agreement has been found to exist pursuant to Article 8.4 or 8.5 of that Agreement. (2) Serious adverse effects (A) Request by interested party An interested party may request the ad- ministering authority to determine if there is reason to believe that serious adverse ef- fects resulting from a program referred to in Article 8.2 of the Subsidies Agreement exist. The request shall contain such information as the administering authority may require to support the allegations contained in the request. (B) Action by administering authority Within 90 days after receipt of the request described in subparagraph (A), the admin- istering authority, after analyzing the re- quest and other information reasonably available to the administering authority, shall determine if there is reason to believe that serious adverse effects resulting from a program referred to in Article 8.2 of the Sub- sidies Agreement exist. If the determination of the administering authority is affirma- tive, it shall so notify the Trade Representa- tive and shall include supporting informa- tion with the notification. The Commission shall assist the administering authority in analyzing the information pertaining to the existence of such serious adverse effects if the administering authority requests the Commission’s assistance. If the subsidy pro- gram that is alleged to result in serious ad- verse effects has been the subject of a coun- tervailing duty investigation or review under subtitle A or C of title VII of the Tar- iff Act of 1930 [19 U.S.C. 1671 et seq., 1675 et seq.], the administering authority shall take into account the determinations made by the administering authority and the Com- mission in such investigation or review and the administering authority shall complete its analysis as expeditiously as possible. (C) Action by Trade Representative The Trade Representative, on the basis of the notification and information provided by the administering authority pursuant to subparagraph (B), and such other informa- tion as the Trade Representative may have or obtain, shall determine as expeditiously as possible, but not later than 30 days after receipt of the notification provided by the administering authority, if there is reason to believe that serious adverse effects exist resulting from the subsidy program which is the subject of the administering authority’s notification. The Trade Representative shall make an affirmative determination regard- ing the existence of such serious adverse ef- fects unless the Trade Representative finds that the notification of the administering authority is not supported by the facts. (D) Consultations If the Trade Representative determines that there is reason to believe that serious adverse effects resulting from the subsidy program exist, the Trade Representative, unless the interested party referred to in subparagraph (A) objects, shall invoke the procedures of Article 9 of the Subsidies Agreement, and shall request consultations pursuant to Article 9.2 of the Subsidies Agreement with respect to such serious ad- verse effects. If such consultations have not resulted in a mutually acceptable solution within 60 days after the request is made for such consultations, the Trade Representa- tive shall refer the matter to the Subsidies Committee pursuant to Article 9.3 of the Subsidies Agreement. Page 880 TITLE 19—CUSTOMS DUTIES § 3571 (E) Determination by Subsidies Committee If the Trade Representative determines that— (i) the Subsidies Committee has been prevented from making an affirmative de- termination regarding the existence of se- rious adverse effects under Article 9 of the Subsidies Agreement by reason of the re- fusal of the WTO member country with re- spect to which the consultations have been invoked to join in an affirmative con- sensus— (I) that such serious adverse effects exist, or (II) regarding a recommendation to such WTO member country to modify the subsidy program in such a way as to remove the serious adverse effects, or (ii) the Subsidies Committee has not pre- sented its conclusions regarding the exist- ence of such serious adverse effects within 120 days after the date the matter was re- ferred to it, as required by Article 9.4 of the Subsidies Agreement, the Trade Representative shall, within 30 days after such determination, make a de- termination under section 304(a)(1) of the Trade Act of 1974 (19 U.S.C. 2414(a)(1)) regard- ing what action to take under section 301(a)(1)(A) of that Act [19 U.S.C. 2411(a)(1)(A)]. (F) Noncompliance with Committee rec- ommendation In the event that the Subsidies Committee makes a recommendation under Article 9.4 of the Subsidies Agreement and the WTO member country with respect to which such recommendation is made does not comply with such recommendation within 6 months after the date of the recommendation, the Trade Representative shall make a deter- mination under section 304(a)(1) of the Trade Act of 1974 (19 U.S.C. 2414(a)(1)) regarding what action to take under section 301(a) of that Act [19 U.S.C. 2411(a)]. (f) Notification, consultation, and publication (1) Notification of Congress The Trade Representative shall submit promptly to the Committee on Ways and Means of the House of Representatives, the Committee on Finance of the Senate, and other appropriate committees of the Congress any information submitted or report made pursuant to Article 8.3 or 8.4 of the Subsidies Agreement regarding a notified subsidy pro- gram. (2) Publication in the Federal Register The administering authority shall publish regularly in the Federal Register a summary notice of any information submitted or report made pursuant to Article 8.3 or 8.4 of the Sub- sidies Agreement regarding notified subsidy programs. (3) Consultations with Congress and private sector The Trade Representative and the admin- istering authority promptly shall consult with the committees referred to in paragraph (1), and with interested representatives of the pri- vate sector, regarding all information sub- mitted or reports made pursuant to Article 8.3 or 8.4 of the Subsidies Agreement regarding a notified subsidy program. (4) Annual report Not later than February 1 of each year be- ginning in 1996, the Trade Representative and the administering authority shall issue a joint report to the Congress detailing— (A) the subsidies practices of major trad- ing partners of the United States, including subsidies that are prohibited, are causing se- rious prejudice, or are nonactionable, under the Subsidies Agreement, and (B) the monitoring and enforcement ac- tivities of the Trade Representative and the administering authority during the pre- ceding calendar year which relate to sub- sidies practices. (g) Cooperation of other agencies All agencies, departments, and independent agencies of the Federal Government shall co- operate fully with one another in carrying out the provisions of this section, and, upon the re- quest of the administering authority, shall fur- nish to the administering authority all records, papers, and information in their possession which relate to the requirements of this section. (h) Definitions For purposes of this section: (1) Adverse effects The term ‘‘adverse effects’’ has the meaning given that term in Articles 5(a) and 5(c) of the Subsidies Agreement. (2) Administering authority The term ‘‘administering authority’’ has the meaning given that term in section 771(1) of the Tariff Act of 1930 (19 U.S.C. 1677(1)). (3) Commission The term ‘‘Commission’’ means the United States International Trade Commission. (4) Interested party The term ‘‘interested party’’ means a party described in subparagraph (C), (D), (E), (F), or (G) of section 771(9) of the Tariff Act of 1930 (19 U.S.C. 1677(9)(C), (D), (E), (F), or (G)). (5) Nonactionable subsidy The term ‘‘nonactionable subsidy’’ means a subsidy described in Article 8.1(b) of the Sub- sidies Agreement. (6) Notified subsidy program The term ‘‘notified subsidy program’’ means a subsidy program which has been notified pursuant to Article 8.3 of the Subsidies Agree- ment. (7) Serious adverse effects The term ‘‘serious adverse effects’’ has the meaning given that term in Article 9.1 of the Subsidies Agreement. (8) Subsidies Agreement The term ‘‘Subsidies Agreement’’ means the Agreement on Subsidies and Countervailing Page 881 TITLE 19—CUSTOMS DUTIES § 3572 1 See Codification note below. Measures described in section 771(8) of the Tar- iff Act of 1930 (19 U.S.C. 1677(8)). (9) Subsidies Committee The term ‘‘Subsidies Committee’’ means the committee established pursuant to Article 24 of the Subsidies Agreement. (10) Subsidy The term ‘‘subsidy’’ has the meaning given that term in Article 1 of the Subsidies Agree- ment. (11) Trade Representative The term ‘‘Trade Representative’’ means the United States Trade Representative. (12) Violation of Article 8 The term ‘‘violation of Article 8’’ means the failure of a notified subsidy program or an in- dividual subsidy granted pursuant to a noti- fied subsidy program to meet the applicable conditions and criteria described in Article 8.2 of the Subsidies Agreement. (i) Treatment of proprietary information Notwithstanding any other provision of law, the administering authority may provide the Trade Representative with a copy of proprietary information submitted to, or obtained by, the administering authority that the Trade Rep- resentative considers relevant in carrying out its responsibilities under this subchapter. The Trade Representative shall protect from public disclosure proprietary information obtained from the administering authority under this subchapter. (Pub. L. 103–465, title II, § 281, Dec. 8, 1994, 108 Stat. 4922; Pub. L. 104–295, § 20(b)(13), Oct. 11, 1996, 110 Stat. 3527.) Editorial Notes REFERENCES IN TEXT The Tariff Act of 1930, referred to in subsecs. (b)(1), (c)(1), and (e)(2)(B), is act June 17, 1930, ch. 497, 46 Stat. 590. Title VII of the Act is classified generally to sub- title IV (§ 1671 et seq.) of chapter 4 of this title. Sub- titles A and C of title VII of the Act are classified gen- erally to parts I (§ 1671 et seq.) and III (§ 1675 et seq.), re- spectively, of subtitle IV of chapter 4 of this title. For complete classification of this Act to the Code, see sec- tion 1654 of this title and Tables. The Trade Act of 1974, referred to in subsec. (d), is Pub. L. 93–618, Jan. 3, 1975, 88 Stat. 1978. Title III of the Act is classified principally to subchapter III (§ 2411 et seq.) of chapter 12 of this title. For complete classifica- tion of this Act to the Code, see section 2101 of this title and Tables. This Act, referred to in subsec. (e)(1)(C)(ii), is Pub. L. 103–465, Dec. 8, 1994, 108 Stat. 4809, known as the Uru- guay Round Agreements Act. For complete classifica- tion of this Act to the Code, see Short Title note set out under section 3501 of this title and Tables. This subchapter, referred to in subsec. (i), was in the original ‘‘this part’’, meaning part 4 (§§ 281 to 283) of subtitle B of title II of Pub. L. 103–465, which enacted this subchapter and amended sections 1671b, 1675, 1677d, and 2191 of this title. For complete classification of this part to the Code, see Tables. AMENDMENTS 1996—Subsec. (h)(4). Pub. L. 104–295 struck out ‘‘(A),’’ after ‘‘1677(9)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Subchapter effective, except as otherwise provided, on the date on which the WTO Agreement enters into force with respect to the United States (Jan. 1, 1995), and applicable with respect to investigations, reviews, and inquiries initiated and petitions filed under speci- fied provisions of subtitle IV (§ 1671 et seq.) of chapter 4 of this title after such date, see section 291 of Pub. L. 103–465, set out as an Effective Date of 1994 Amendment note under section 1671 of this title. § 3572. Review of Subsidies Agreement (a) General objectives The general objectives of the United States under this subchapter are— (1) to ensure that parts II and III of the Agreement on Subsidies and Countervailing Measures referred to in section 3511(d)(12) of this title (hereafter in this section referred to as the ‘‘Subsidies Agreement’’) are effective in disciplining the use of subsidies and in rem- edying the adverse effects of subsidies, and (2) to ensure that part IV of the Subsidies Agreement does not undermine the benefits derived from any other part of that Agree- ment. (b) Specific objective The specific objective of the United States under this subchapter shall be to create a mech- anism which will provide for an ongoing review of the operation of part IV of the Subsidies Agreement. (c) Sunset of noncountervailable subsidies provi- sions (1) In general Subparagraphs (B), (C), (D), and (E) of sec- tion 1677(5B) of this title shall cease to apply as provided in subparagraph (G)(i) of such sec- tion, unless, before the date referred to in such subparagraph (G)(i)— (A) the Subsidies Committee determines to extend Articles 6.1, 8, and 9 of the Subsidies Agreement as in effect on the date on which the Subsidies Agreement enters into force or in a modified form, in accordance with Arti- cle 31 of such Agreement, (B) the President consults with the Con- gress in accordance with paragraph (2), and (C) an implementing bill is submitted and enacted into law in accordance with para- graphs (3) and (4).1 (2) Consultation with Congress before Sub- sidies Committee agrees to extend Before a determination is made by the Sub- sidies Committee to extend Articles 6.1, 8, and 9 of the Subsidies Agreement, the President shall consult with the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate regarding such extension. (3) Implementation of extension (A) Notification and submission Any extension of subparagraphs (B), (C), (D), and (E) of section 1677(5B) of this title shall take effect if (and only if)—