Sec. 204. Modification of determination of normal value to account for distortions of costs that occur in foreign countries
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Section 773(b)(3) of the Tariff Act of 1930 ( 19 U.S.C. 1677b(b)(3) ) is amended— in subparagraph (A), by striking business and inserting trade ; and in the matter following subparagraph (C), by inserting before For purposes the following: For purposes of subparagraph (A), if a particular market situation exists such that the cost of materials and fabrication or other processing of any kind does not reasonably reflect the cost of production in the ordinary course of trade, the administering authority may use another calculation methodology under this subtitle or any other calculation methodology. .
Section 773(e) of the Tariff Act of 1930 ( 19 U.S.C. 1677b(e) ) is amended, in the first sentence of the flush text after paragraph (3), by striking accurately and inserting reasonably . Section 771(15) of the Tariff Act of 1930 ( 19 U.S.C. 1677(15)(C) ), as amended by section 202 of this Act, is further amended— by redesignating subparagraphs
(A)through
(D)as clauses
(i)through (iv), respectively, and moving those clauses, as so redesignating, two ems to the right; by striking The term and inserting the following: The term ; in subparagraph (A), as designated by paragraph (2), in clause (iii), as redesignated by paragraph (1)— by striking that the particular market situation prevents and inserting “that a particular market situation exists that— prevents ; in subclause (I), as designated by subparagraph (A), by striking the period at the end and inserting , relating to normal value determined under subsection
(a)of section 773; or ; and by adding at the end the following: distorts costs of production, relating to normal value determined under subsections
(b)and
(e)of section 773. ; and by adding at the end the following: For purposes of making a determination under subparagraph (A)(iii)(II) with respect to subject merchandise, the administering authority shall determine that a particular market situation exists that distorts costs of production if a particular market situation exists such that the cost of materials and fabrication or other processing of any kind does not reasonably reflect the cost of production in the ordinary course of trade. . Section 771 of the Tariff Act of 1930 ( 19 U.S.C. 1677 ), as amended by sections 101(b) and 201(b)(3), is further amended by adding at the end the following: The term particular market situation means a certain circumstance or set of circumstances that the administering authority determines either prevents a proper comparison of prices in the comparison market with the export price or constructed export price or distorts the costs of production of the subject merchandise. Examples of circumstances that are likely to distort the costs of production and thus are deemed to create a particular market situation for subject merchandise for purposes of subparagraph
(A)include the following circumstances: An input into the production of subject merchandise is produced in such amounts that there is more supply than demand in international markets for the input. A foreign government, a state-owned enterprise, or any other public body is the predominant producer or supplier of an input into the production of subject merchandise. A foreign government intervenes in the market for an input into the production of subject merchandise. A foreign government limits exports of an input into the production of subject merchandise. A foreign government imposes export taxes on an input into the production of subject merchandise. A foreign government exempts an importer, producer, or exporter of subject merchandise from paying duties or taxes associated with trade remedies established by the foreign government relating to an input into the production of subject merchandise. A foreign government rebates duties or taxes paid by an importer, producer, or exporter of subject merchandise associated with trade remedies established by the foreign government related to an input into the production of subject merchandise. A foreign government provides financial assistance or support to the producer or exporter of subject merchandise, or to a producer or supplier of an input into the production of subject merchandise. A foreign government takes action that influences the production of subject merchandise or an input into the production of subject merchandise, such as domestic content and technology transfer requirements. A foreign government does not enforce its property (including intellectual property), human rights, labor, or environmental protection laws and policies, or those laws and policies are otherwise shown to be ineffective with respect to either a producer or exporter of subject merchandise, or to a producer or supplier of an input into the production of subject merchandise in the subject country. A foreign government does not implement property (including intellectual property), human rights, labor, or environmental protection laws and policies. A business relationship between one or more producers of subject merchandise and suppliers of inputs to the production of subject merchandise is such that prices of the inputs are not determined in accordance with general market principles, such as through a strategic alliance or noncompetitive arrangement. If the administering authority determines the existence of a particular market situation under subparagraph
(A)but cannot measure the distortions caused by that particular market situation on prices or costs in the exporting country, the administering authority is not required to quantify those distortions and may use any available information and methodology to address those distortions in its analysis and calculations. The same market situation, or a similar market situation, that distorts the costs of production of the subject merchandise can exist in multiple countries or markets and still be considered particular if the administering authority determines that a market situation exists that distorts costs of production for certain products or parties in the subject country. There is no limitation to the number of products or parties that may be impacted by a particular market situation. In finding that a particular market situation exists, or in using another calculation methodology under this paragraph, the administering authority is not required to consider— the costs or prices that would otherwise exist in the ordinary course of trade in the absence of the particular market situation or any of its contributing circumstances; whether there is any difference between the particular market situation or any of its contributing circumstances in the exporting country as opposed to any other country; or the length of time that the particular market situation or any of its contributing circumstances has existed. .
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Sec. 204
Modification of determination of normal value to account for distortions of costs that occur in foreign countries
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