[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5110 Introduced in Senate (IS)]
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118th CONGRESS
2d Session
S. 5110
To clarify the country of origin of certain articles imported into the
United States for purposes of certain trade enforcement actions.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 19, 2024
Mr. Rubio introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To clarify the country of origin of certain articles imported into the
United States for purposes of certain trade enforcement actions.
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 ``Stopping Adversarial Tariff Evasion
Act''.
SEC. 2. CLARIFICATION OF COUNTRY OF ORIGIN CRITERIA FOR ENFORCEMENT
ACTION UNDER TRADE AGREEMENTS OR IN RESPONSE TO CERTAIN
FOREIGN TRADE PRACTICES.
Section 301(d) of the Trade Act of 1974 (19 U.S.C. 2411(d)) is
amended by adding at the end the following:
``(10)(A) Any action taken by the Trade Representative
under this section, with respect to a foreign adversary
country, shall apply to any article that is produced,
manufactured, or that underwent final assembly by a foreign
adversary party or an entity owned, controlled, directed, or
operated by a foreign adversary party, as if such article
originated in the foreign adversary country.
``(B) In this paragraph:
``(i) The term `control' has the meaning given that
term in section 800.208 of title 31, Code of Federal
Regulations (as in effect on the date of the enactment
of the Stopping Adversarial Tariff Evasion Act).
``(ii) The term `entity owned, controlled,
directed, or operated by a foreign adversary party'
includes any entity for which, on any date during the
most recent 12-month period, not less than 25 percent
of the equity interests in such entity are held
directly or indirectly by 1 or more foreign adversary
parties including through--
``(I) interests in co-investment vehicles,
joint ventures, or similar arrangements; or
``(II) a derivative financial instrument or
contractual arrangement between the entity and
a foreign adversary party, including any such
instrument or contract that seeks to replicate
any financial return with respect to such
entity or interest in such entity.
``(iii) The term `foreign adversary country' means
any of the following:
``(I) The People's Republic of China.
``(II) The Russian Federation.
``(III) The Islamic Republic of Iran.
``(IV) The Democratic People's Republic of
Korea.
``(V) The Republic of Cuba.
``(VI) The Bolivarian Republic of Venezuela
during any period of time during which Nicholas
Maduro is President of the Republic.
``(VII) The Syrian Arab Republic.
``(iv) The term `foreign adversary party' means any
of the following:
``(I) The government of a foreign adversary
country, including any agency, government
instrumentality, official, or agent of such a
government.
``(II) Any entity organized under the laws
of a foreign adversary country (or any
political subdivision thereof).
``(III) Any entity the headquarters of
which is located within a foreign adversary
country.
``(IV) Any entity substantively involved in
the industrial policies or military-civil
fusion strategy of the People's Republic of
China, including by accepting funding from,
performing a service for, or receiving a
subsidy from the People's Republic of China
related to such policies or strategy.''.
SEC. 3. CLARIFICATION OF COUNTRY OF ORIGIN CRITERIA FOR ENFORCEMENT
ACTION BY PRESIDENT AFTER DETERMINATION OF IMPORT INJURY.
Section 203 of the Trade Act of 1974 (19 U.S.C. 2253) is amended by
adding at the end the following:
``(h) Application of Action to Foreign Adversary Parties.--(1) Any
action taken under this section shall apply to any article that is
produced, manufactured, or that underwent final assembly by a foreign
adversary party or an entity owned, controlled, directed, or operated
by a foreign adversary party, as if such article originated in a
foreign adversary country.
``(2) In this subsection:
``(A) The term `control' has the meaning given that term in
section 800.208 of title 31, Code of Federal Regulations (as in
effect on the date of the enactment of the Stopping Adversarial
Tariff Evasion Act).
``(B) The term `entity owned, controlled, directed, or
operated by a foreign adversary party' includes any entity for
which, on any date during the most recent 12-month period, not
less than 25 percent of the equity interests in such entity are
held directly or indirectly by 1 or more foreign adversary
parties including through--
``(i) interests in co-investment vehicles, joint
ventures, or similar arrangements; or
``(ii) a derivative financial instrument or
contractual arrangement between the entity and a
foreign adversary party, including any such instrument
or contract that seeks to replicate any financial
return with respect to such entity or interest in such
entity.
``(C) The term `foreign adversary country' means any of the
following:
``(i) The People's Republic of China.
``(ii) The Russian Federation.
``(iii) The Islamic Republic of Iran.
``(iv) The Democratic People's Republic of Korea.
``(v) The Republic of Cuba.
``(vi) The Bolivarian Republic of Venezuela during
any period of time during which Nicholas Maduro is
President of the Republic.
``(vii) The Syrian Arab Republic.
``(D) The term `foreign adversary party' means any of the
following:
``(i) The government of a foreign adversary
country, including any agency, government
instrumentality, official, or agent of such a
government.
``(ii) Any entity organized under the laws of a
foreign adversary country (or any political subdivision
thereof).
``(iii) Any entity the headquarters of which is
located within a foreign adversary country.
``(iv) Any entity substantively involved in the
industrial policies or military-civil fusion strategy
of the People's Republic of China, including by
accepting funding from, performing a service for, or
receiving a subsidy from the People's Republic of China
related to such policies or strategy.''.
SEC. 4. CLARIFICATION OF COUNTRY OF ORIGIN CRITERIA FOR ENFORCEMENT
ACTION TO SAFEGUARD NATIONAL SECURITY.
Section 232(c) of the Trade Expansion Act of 1962 (19 U.S.C.
1862(c)) is amended by adding at the end the following:
``(4)(A) Any action taken by the President under paragraph
(1) shall apply to any article that is produced, manufactured,
or that underwent final assembly by a foreign adversary party
or an entity owned, controlled, directed, or operated by a
foreign adversary party, as if such article originated in a
foreign adversary country.
``(B) For the purposes of this paragraph the following
definitions apply:
``(i) The term `control' has the meaning given that
term in section 800.208 of title 31, Code of Federal
Regulations (as in effect on the date of the enactment
of the Stopping Adversarial Tariff Evasion Act).
``(ii) The term `entity owned, controlled,
directed, or operated by a foreign adversary party'
includes any entity for which, on any date during the
most recent 12-month period, not less than 25 percent
of the equity interests in such entity are held
directly or indirectly by 1 or more foreign adversary
parties including through--
``(I) interests in co-investment vehicles,
joint ventures, or similar arrangements; or
``(II) a derivative financial instrument or
contractual arrangement between the entity and
a foreign adversary party, including any such
instrument or contract that seeks to replicate
any financial return with respect to such
entity or interest in such entity.
``(iii) The term `foreign adversary country' means
any of the following:
``(I) The People's Republic of China.
``(II) The Russian Federation.
``(III) The Islamic Republic of Iran.
``(IV) The Democratic People's Republic of
Korea.
``(V) The Republic of Cuba.
``(VI) The Bolivarian Republic of Venezuela
during any period of time during which Nicholas
Maduro is President of the Republic.
``(VII) The Syrian Arab Republic.
``(iv) The term `foreign adversary party' means any
of the following:
``(I) The government of a foreign adversary
country, including any agency, government
instrumentality, official, or agent of such a
government.
``(II) Any entity organized under the laws
of a foreign adversary country (or any
political subdivision thereof).
``(III) Any entity the headquarters of
which is located within a foreign adversary
country.
``(IV) Any entity substantively involved in
the industrial policies or military-civil
fusion strategy of the People's Republic of
China, including by accepting funding from,
performing a service for, or receiving a
subsidy from the People's Republic of China
related to such policies or strategy.''.
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