Sec. 212. Incentives for re-shoring and near-shoring of businesses from People’s Republic of China
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The Secretary may provide loans to covered entities. The total amount of loans that may be provided under subparagraph
(A)may not exceed $70,000,000,000. Loans provided to covered entities under subparagraph
(A)may be used for— the costs of moving inventory, equipment, and supplies from the People’s Republic of China to the United States, an Americas partner country, or another country benefitting from a strategic supply chain identified under section 254; the costs of training workers in the United States, an Americas partner country, or a country benefitting from a strategic supply chain identified under section 254; the costs of constructing facilities in the United States, an Americas partner country, or a country benefitting from a strategic supply chain identified under section 254; other costs directly related to re-shoring or near-shoring; or loans, guarantees, and other instruments (excluding grants) approved by the BUILD Americas Unit or the Americas Enterprise Fund designated under section 253. The Secretary of Commerce shall administer a grant program to award grants to covered entities. Funding for grants under the grant program required under subparagraph
(A)shall be derived solely from the Re-Shoring and Near-Shoring Account established under section 301. The Secretary or the Secretary of Commerce, as the case may be, may enter into arrangements with commercial banks, credit unions, or other entities in the United States as identified by the Secretary to administer loans authorized under paragraph
(1)or grants authorized under paragraph
(2)for covered entities to re-shore. The Secretary or the Secretary of Commerce, as the case may be, may enter into arrangements with the BUILD Americas Unit or regional banks to administer loans authorized under paragraph
(1)or grants authorized under paragraph
(2)for covered entities to near-shore. The Secretary shall deposit any profits earned on interest bearing loans authorized under paragraph
(1)in the Re-Shoring and Near-Shoring Account established under section 301. Not later than one year after the date of the enactment of this Act, the Secretary shall submit to Congress a report on the progress of the arrangements entered into under this paragraph. Not later than one year after the date of the enactment of this Act, and annually thereafter, the Board of Governors of each commercial bank with respect to which the Secretary or the Secretary of Commerce has entered into an arrangement under paragraph
(4)and the BUILD Americas Unit shall submit to the Under Secretary a report on the administration by each such entity of loans or grants under this subsection, including— a description of the loans issued or grants awarded; the repayment rates for any such loans; an assessment of successful re-shoring and near-shoring projects; a description of any lessons learned; and the balance sheets for any such loans. The Under Secretary of Commerce for International Trade shall include the information provided in reports under subparagraph
(A)in the annual report required under section 401. Notwithstanding any other provision of law, covered entities approved under subsection
(c)are eligible for a one-time duty-free import of articles into the United States that are imported for the sole and express purposes of re-shoring or near-shoring. An entity that seeks to re-shore or near-shore may submit notice of the intent of the entity to re-shore or near-shore, as the case may be, along with such paperwork as the Secretary may consider appropriate demonstrating that intent. The Secretary, in consultation with the Trade Representative, shall approve entities that have submitted notice under paragraph
(1)to re-shore or near-shore pursuant to such procedures as the Secretary considers appropriate. If an entity uses a contract company for the production of goods or services in the People's Republic of China, the approval of the entity under paragraph
(2)shall not take effect until the entity notifies the Secretary and the Secretary confirms that a replacement contract has been awarded in the United States or an Americas partner country. Except as provided in paragraph (4), a covered entity approved under subsection
(c)to re-shore or near-shore shall have 5 years following that approval to complete re-shoring or near-shoring, as the case may be, of the business of that entity, which may include the moving of materials, personnel, and production. Except as provided in paragraph (4), a covered entity is not eligible for benefits under this section on or after the date that is 5 years after the date on which the entity is approved under subsection (d). Except as provided in paragraph (4), at the end of the 5-year period under paragraph (1), a covered entity that has not completed the re-shoring or near-shoring, as the case may be, of the business of the entity shall owe to the United States— the total amount of duties the entity would have owed for imports into the United States but for the application of subsection (b); the total amount of any other benefits accrued to the entity under this section, as determined by the Secretary in consultation with the Trade Representative; and a penalty equal to 10 percent of the amounts determined under subparagraphs
(A)and (B). If the Secretary determines that extraordinary circumstances exist, on a case-by-case basis, the Secretary may— extend by a period of two years the deadlines under paragraphs
(1)and (2); or waive the amounts owed under paragraph (3). The United States shall disregard any ruling against a covered entity or a government of an Americas partner country that pertains to a default on obligations in the People’s Republic of China relating to re-shoring or near-shoring activities approved under this section. The President shall use the voice and vote of the United States at multilateral institutions to— oppose the consideration of defaults on obligations in the People’s Republic of China relating to re-shoring or near-shoring activities approved under this section when measuring credit ratings of covered entities; and disregard sovereign debt defaults and other similar actions when measuring credit valuations of Americas partner countries relating to debts and amounts received from the People’s Republic of China. Congress makes the following findings: The United States Trade Representative stated in a hearing that, The United States has repeatedly sought and obtained commitments from China, only to find that follow-through or real change remains elusive. . The Government of the People's Republic of China continues to apply the rules only when they are beneficial to them. It is the sense of Congress that— companies approved for re-shoring or near-shoring by the Secretary should be protected from legal asset forfeiture by the People's Republic of China; and covered entities and transactions by covered entities are subject to the national security exceptions under article XXI of the GATT 1994 (as defined in section 2 of the Uruguay Round Agreements Act ( 19 U.S.C. 3501 )). In this section: The term covered entity means an entity that has submitted notice of the intent of the entity to re-shore or near-shore under subsection (c)(1) and has been approved for re-shoring or near-shoring under subsection (c)(2). The term Secretary means the Secretary of the Treasury. The term Trade Representative means the United States Trade Representative.
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Sec. 212
Incentives for re-shoring and near-shoring of businesses from People’s Republic of China
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