[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6011 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 6011
To require certain manufactured goods introduced for sale in the United
States to have a domestic value content of more than 50 percent, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 17, 2021
Ms. Tenney introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on Energy
and Commerce, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To require certain manufactured goods introduced for sale in the United
States to have a domestic value content of more than 50 percent, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Make in America to Sell in America
Act of 2021''.
SEC. 2. FINDINGS; SENSE OF CONGRESS.
(a) Findings.--Congress makes the following findings:
(1) Excessive globalization has been a disaster for United
States workers in the manufacturing sector.
(2) The erosion of the domestic industrial base of the
United States is the result of the lack of adequate protection
for both domestic industry and United States workers from
import competition.
(3) Since 2001, approximately 60,000 factories have
shuttered in the United States.
(4) The COVID-19 pandemic revealed the degree to which the
United States is dependent on the People's Republic of China
for certain critical manufactured goods.
(5) The United States currently mandates domestic sourcing
by requiring certain government agencies to purchase only goods
that are produced in whole or in part in the United States.
(b) Sense of Congress.--It is the sense of Congress that a targeted
regime of local content requirements across manufactured goods sold in
the United States should be deployed to boost domestic industry,
repatriate supply chains, and nurture infant industries.
SEC. 3. DEFINITIONS.
In this Act:
(1) Commission.--The term ``Commission'' means the United
States International Trade Commission.
(2) Covered good.--The term ``covered good'' means a good
identified by the Secretary of Commerce in the report required
by section 4.
(3) Introduce for sale.--The term ``introduce for sale'',
with respect to a good, means to import the good into the
United States or produce the good for consumption in the United
States.
SEC. 4. IDENTIFICATION OF CRITICAL GOODS.
(a) In General.--Not later than one year after the date of the
enactment of this Act, and annually thereafter, the Secretary of
Commerce, in consultation with the Secretary of Defense, shall submit
to Congress and make available to the public a report that identifies
finished goods and intermediate goods the domestic production of which
is critical for the protection of the industrial base in the United
States or for the national security of the United States.
(b) Considerations.--In considering whether the production of a
good is critical for the protection of the industrial base or for the
national security of the United States, the Secretary of Commerce may
consider--
(1) the relative lack of the domestic production of the
good compared to domestic demand for the good;
(2) the extent to which the global supply chain of the good
is vulnerable; and
(3) the employment effects of restoring or establishing
production of the good in the United States.
SEC. 5. MINIMUM DOMESTIC CONTENT REQUIREMENT.
(a) In General.--Except as provided in subsection (c) or (d), a
covered good may not be introduced for sale in the United States unless
the domestic value content of the good is more than 50 percent.
(b) Domestic Value Content.--
(1) Calculation.--The domestic value content of a covered
good may be calculated on the basis of the following
transaction value method:
TV-VNM ......................
DVC = ---------- x 100
TV ......................
(2) Definitions.--In this subsection:
(A) DVC.--The term ``DVC'' means the domestic value
content of the good, expressed as a percentage.
(B) Originating good; originating material.--
(i) In general.--The terms ``originating
good'' and ``originating material'' mean a good
or material, as the case may be--
(I) wholly obtained or produced
entirely in the United States; or
(II) substantially transformed in
the United States from a good or
material that is not wholly the growth,
product, or manufacture of the United
States.
(ii) Remanufactured goods.--For purposes of
determining whether a remanufactured good is an
originating good, a recovered material derived
in the United States shall be treated as an
originating material if the material is used or
consumed in the production of, and
incorporation into, the manufactured good.
(C) Nonoriginating good; nonoriginating material.--
The terms ``nonoriginating good'' and ``nonoriginating
material'' mean a good or material, as the case may be,
that does not qualify as originating under subparagraph
(B).
(D) TV.--The term ``TV'' means the transaction
value of the good, adjusted to exclude any costs
incurred in the international shipment of the good.
(E) VNM.--The term ``VNM'' means the value of
nonoriginating goods or nonoriginating materials used
by the producer in the production of the good.
(3) Value of nonoriginating materials.--For purposes of
calculating the domestic value content of a good under this
subsection, the value of nonoriginating materials used by the
producer in the production of the good shall not include the
value of nonoriginating materials used or consumed to produce
originating materials that are subsequently used or consumed in
the production of the good.
(c) Exceptions.--The prohibition under subsection (a) does not
apply with respect to--
(1) used goods; or
(2) goods introduced for sale in the United States by any
person with annual revenue of less than $5,000,000.
(d) Waiver.--
(1) In general.--The President may waive the application of
subsection (a) with respect to a covered good if the
President--
(A) determines that--
(i) the covered good is not available for
sale in the United States in a manner that
meets the minimum domestic content requirement
under subsection (a);
(ii) the development of domestic production
of the covered good to meet the consumptive
demand of the United States is substantially
time-intensive or capital-intensive compared
with other covered goods; or
(iii) a delay in the application of the
requirement under subsection (a) is critical
for the national security of the United States;
and
(B) submits to Congress and makes available to the
public a report on the reasons for the waiver.
(2) Effective period.--A waiver issued under paragraph (1)
with respect to a covered good terminates on the date that is 3
years after the date on which the President submits the report
required by paragraph (1)(B) with respect to the waiver.
(3) Prohibition on renewal.--A waiver issued under
paragraph (1) may not be renewed.
(4) Briefings required.--Not less frequently than annually,
the President shall brief the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives with respect to the waivers issued under
paragraph (1) and the determinations made under paragraph
(1)(A) with respect to those waivers during the preceding year.
(5) Public list.--Not less frequently than annually, the
President shall make available to the public a list of all
waivers issued under paragraph (1) during the preceding year.
(e) Regulations.--The Secretary of Commerce, in consultation with
the Commissioner of U.S. Customs and Border Protection, shall prescribe
regulations and guidance to carry out this section, including with
respect to the calculation and applicability of the minimum domestic
content requirement under subsection (a).
SEC. 6. ENFORCEMENT.
(a) In General.--
(1) Penalties.--If the Secretary of Commerce determines
that a person introduces for sale, or causes to be introduced
for sale, a covered good in the United States in violation of
section 4(a), that person shall be liable for a civil penalty
not to exceed the greater of--
(A) the amount that is twice the total transaction
value of the good; or
(B) $5,000,000.
(2) Considerations.--In making a determination under
paragraph (1) with respect to an alleged violation of section
4(a), the Secretary of Commerce shall consider the findings of
the Commission pursuant to an investigation conducted under
subsection (b) with respect to the alleged violation.
(b) Investigations by Commission.--
(1) Petitions.--The Commission may initiate an
investigation into an alleged violation of section 4(a) with
respect to a covered good upon the filing of a petition by a
domestic producer of the covered good or the Secretary of
Commerce.
(2) Notification.--Upon receipt of a petition filed under
paragraph (1), the Commission shall notify the person alleged
to have violated section 4(a) of the petition and the
allegations included in the petition.
(3) Initiation of investigation.--Not later than 20 days
after receiving a petition filed under paragraph (1), the
Commission shall--
(A) after examining, on the basis of sources
readily available, the accuracy and adequacy of the
allegations included in the petition, determine whether
the petition--
(i) alleges the elements necessary for the
imposition of a penalty under subsection
(a)(1); and
(ii) contains information reasonably
available to the petitioner supporting the
allegations;
(B) determine whether the covered good that is the
subject of the petition is covered by a waiver issued
under section 4(c); and
(C) if the determination under subparagraph (A) is
affirmative and the determination under subparagraph
(B) is negative, initiate an investigation.
(4) Findings.--
(A) In general.--Not later than 60 days after
initiating an investigation under paragraph (3)(C), and
after soliciting public comments, soliciting evidence
from the parties, and examining other relevant sources,
the Commission shall make a finding with respect to
whether, based on a preponderance of evidence, the
person that is the subject of the investigation has
violated section 4(a).
(B) Notifications.--If the finding of the
Commission under subparagraph (A) is affirmative, the
Commission shall--
(i) notify all parties to the investigation
of the finding; and
(ii) make available to the public the facts
and conclusions upon which the finding was
based.
(5) Withdrawal of petitions.--The Commission may terminate
an investigation initiated under paragraph (3), after notice to
all parties to the investigation, if the petition filed under
paragraph (1) is withdrawn by the petitioner.
(6) Staff.--The Commission may hire sufficient staff to
carry out investigations under this subsection.
(7) Regulations.--The Commission may prescribe regulations
and guidance as necessary to carry out this subsection.
SEC. 7. APPLICABILITY.
The provisions of this Act apply with respect to goods introduced
for sale in the United States on and after the date that is 3 years
after the date of the enactment of this Act.
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