Sec. 11. Currency undervaluation under countervailing duty law
831 words·~4 min read·
/bill/113/s/1114/is/section-11A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subsection
(c)of section 702 of the Tariff Act of 1930 ( 19 U.S.C. 1671a(c) ) is amended by adding at the end the following: For purposes of a countervailing duty investigation under this subtitle where the determinations under clauses
(i)and
(ii)of paragraph (1)(A) are affirmative, or a review under subtitle C of this title, the following shall apply: The administering authority shall initiate an investigation to determine whether currency undervaluation by the government of a country or any public entity within the territory of a country is providing, directly or indirectly, a countervailable subsidy as described in section 771(5), if— a petition filed by an interested party (described in subparagraph (C), (D), (E), (F), or
(G)of section 771(9)) alleges the elements necessary for the imposition of the duty imposed by section 701(a); and the petition is accompanied by information reasonably available to the petitioner supporting those allegations. Upon designation of a currency as a fundamentally misaligned currency for priority action pursuant to section 4(a)(3) of the Currency Exchange Rate Oversight Reform Act of 2013 , the administering authority shall initiate an investigation to determine whether the country that issues such currency is providing, directly or indirectly, a countervailable subsidy as defined in section 771(5), if— a petition filed by an interested party (described in subparagraph (C), (D), (E), (F), or
(G)of section 771(9)) alleges the elements necessary for the imposition of the duty imposed by section 701(a); and the petition is accompanied by information reasonably available to the petitioner supporting those allegations. . Section 771 of the Tariff Act of 1930 ( 19 U.S.C. 1677 ), as amended by section 10(b), is further amended by adding at the end the following: For purposes of a countervailing duty investigation under subtitle A of this title, or a review under subtitle C of this title, the following shall apply: If the administering authority determines to investigate whether currency undervaluation is a countervailable subsidy as defined in section 771(5), the administering authority shall determine whether there is a benefit to the recipient and measure such benefit by comparing the simple average of the real exchange rates derived from application of the macroeconomic-balance approach and the equilibrium-real-exchange-rate approach to the official daily exchange rate identified by the administering authority. In making the determination under subparagraph (A), the administering authority shall rely upon data that are publicly available, reliable, and compiled and maintained by the International Monetary Fund or the World Bank, or other international organizations or national governments if data from the International Monetary Fund or World Bank are not available. In the case of designation of a currency as a fundamentally misaligned currency for priority action pursuant to section 4(a)(3) of the Currency Exchange Rate Oversight Reform Act of 2013 , the administering authority shall determine whether there is a benefit to the recipient and measure that benefit by comparing the nominal value associated with the medium-term equilibrium exchange rate of the currency of the exporting country, identified by the Secretary pursuant to section 3(b)(7) of such Act, to the official daily exchange rate identified by the administering authority. In this paragraph: The term macroeconomic-balance approach means a methodology under which the level of undervaluation of the real effective exchange rate of the currency of the exporting country is defined as the change in the real effective exchange rate needed to achieve equilibrium in the balance of payments of the exporting country, as such methodology is described in the guidelines of the International Monetary Fund’s Consultative Group on Exchange Rate Issues, if available. The term equilibrium-real-exchange-rate approach means a methodology under which the level of undervaluation of the real effective exchange rate of the currency of the exporting country is defined as the difference between the observed real effective exchange rate and the real effective exchange rate, as such methodology is described in the guidelines of the International Monetary Fund’s Consultative Group on Exchange Rate Issues, if available. The term real exchange rates means the bilateral exchange rates derived from converting the trade-weighted multilateral exchange rates yielded by the macroeconomic-balance approach and the equilibrium-real-exchange-rate approach into real bilateral terms. . Section 771(5A)(B) of the Tariff Act of 1930 (19 U.S.C. 1677(5A)(B)) is amended by adding at the end the following new sentence: The fact that a subsidy may also be provided in circumstances that do not involve export shall not, for that reason alone, mean that the subsidy cannot be considered contingent upon export performance. . The amendments made by this section apply to countervailing duty investigations initiated under subtitle A of title VII of the Tariff Act of 1930 ( 19 U.S.C. 1671 et seq. ) and reviews initiated under subtitle C of title VII of such Act ( 19 U.S.C. 1675 et seq. )— before the date of the enactment of this Act, if the investigation or review is pending a final determination as of such date of enactment; and on or after such date of enactment.
Connectionstraces to 4
Citation graph
cites case law
Sec. 11
Currency undervaluation under countervailing duty law
Cites 4Cited by 0 across 0 sources