[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1886 Introduced in Senate (IS)]
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119th CONGRESS
1st Session
S. 1886
To amend the Trade Act of 1974 to authorize the United States Trade
Representative to impose remedial measures with respect to certain
entities that evade or may attempt to evade duties imposed with respect
to nonmarket economy countries, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 22, 2025
Mr. Banks introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Trade Act of 1974 to authorize the United States Trade
Representative to impose remedial measures with respect to certain
entities that evade or may attempt to evade duties imposed with respect
to nonmarket economy countries, 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 ``Axing Nonmarket Tariff Evasion Act''
or the ``ANTE Act''.
SEC. 2. IMPOSITION BY TRADE REPRESENTATIVE OF REMEDIAL MEASURES IN CASE
OF EVASION OF DUTIES BY CERTAIN ENTITIES OF NONMARKET
ECONOMY COUNTRIES.
(a) In General.--Title III of the Trade Act of 1974 (19 U.S.C. 2411
et seq.) is amended by adding at the end the following:
``SEC. 311. REMEDIAL MEASURES REGARDING EVASION OF DUTIES BY CERTAIN
ENTITIES IN NONMARKET ECONOMY COUNTRIES.
``(a) Inquiry.--The Trade Representative may initiate an inquiry
into whether a covered entity is establishing, planning to establish,
or has established an investment in a third country that would avoid
duties imposed under section 301 with respect to a nonmarket economy
country.
``(b) Remedial Measures.--
``(1) In general.--If the Trade Representative makes an
affirmative determination under subsection (a) with respect to
a covered entity and the investment of that covered entity in a
third country, the Trade Representative, subject to the
specific direction, if any, of the President, may impose a
remedial measure with respect to goods produced in the third
country by a covered entity, which may include the imposition
of a duty equal to not less than the value of the duty placed
on the relevant product of the nonmarket economy country under
section 301.
``(2) Timing.--An action under paragraph (1) may be taken
with respect to a covered entity--
``(A) at any point during an investigation under
section 301 if the third-country investment of the
covered entity has begun production; and
``(B) prospectively, if the covered entity has
plans to establish production in the third country.
``(c) Matters Relating to Inquiries.--
``(1) In general.--An inquiry under subsection (a) may be
self-initiated by the Trade Representative or may be requested
by interested persons (as defined in section 301(d)(9)) or
Congress.
``(2) Initiation.--
``(A) In general.--If an inquiry is requested under
paragraph (1) and the Trade Representative determines
there is a reasonable indication that a covered entity
is establishing, planning to establish, or has already
established an investment in a third country that would
avoid duties imposed under section 301 with respect to
a nonmarket economy country, the Trade Representative
may initiate an inquiry under subsection (a).
``(B) Information from other agencies.--Upon
request of the Trade Representative, the head of a
Federal agency shall submit to the Trade Representative
any relevant information of the agency that is
necessary for the Trade Representative to carry out an
inquiry under subsection (a).
``(3) Determination to initiate inquiry.--Not later than 45
days after receipt of a request under paragraph (1), the Trade
Representative shall determine whether an inquiry under
subsection (a) is warranted.
``(4) Determination of evasion.--Not later than 180 days
after a determination under paragraph (3) that an inquiry under
subsection (a) is warranted with respect to a covered entity,
the Trade Representative shall make an affirmative
determination of duty evasion if it is found that the third-
country investment--
``(A) is being established or acquired, or has been
established or acquired, by the covered entity; and
``(B) is producing or planning to produce a good
subject to a duty under section 301.
``(d) Additional Measures.--
``(1) In general.--Based on the findings of an inquiry
under subsection (a) with respect to a covered entity, the
Trade Representative may, at the specific direction, if any, of
the President, unilaterally impose a measure--
``(A) with respect to the covered entity; and
``(B) with respect to goods produced in a third
country pursuant to the investment of that covered
entity in the third country.
``(2) Timing.--A measure may be imposed under paragraph (1)
with respect to a covered entity--
``(A) if the covered entity has begun production;
or
``(B) prospectively, if the covered entity has
immediate plans to establish production in the third
country.
``(3) Decision not to impose a measure.--If the Trade
Representative does not impose a measure under paragraph (1)
with respect to a covered entity, the Trade Representative
shall submit to Congress a justification as to why such a
measure was not imposed, which shall include a description of
the social and economic impacts of not imposing the measure.
``(4) Duration of measure.--If a measure is imposed by the
Trade Representative under paragraph (1) with respect to a
covered entity, the measure shall last as long as the remedial
action with respect to the relevant nonmarket economy country
imposed under section 301 remains in effect, or as long as the
relevant nonmarket economy country has a controlling interest
in the third-country investment of the covered entity,
whichever terminates sooner.
``(e) Definitions.--In this section:
``(1) Control.--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 this
section).
``(2) Covered entity.--The term `covered entity'--
``(A) means an entity owned, controlled, subject to
the jurisdiction or direction of, or operated by a
nonmarket economy country; and
``(B) 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 that entity are
held directly or indirectly by one or more entities
organized under the laws of a nonmarket economy
country, 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 nonmarket economy country, including any such
instrument or contract that seeks to replicate
any financial return with respect to such
entity or interest in such entity.
``(3) Nonmarket economy country.--The term `nonmarket
economy country' means any country that is both--
``(A) determined to be a nonmarket economy country
under section 771(18) of the Tariff Act of 1930 (19
U.S.C. 1677(18)); and
``(B) included on the priority watch list, as
defined in section 182(g)(3) (commonly known as the
`Special 301 Priority Watch List').
``(4) Trade representative.--The term `Trade
Representative' means the United States Trade
Representative.''.
(b) Clerical Amendment.--The table of contents for the Trade Act of
1974 is amended by inserting after the item relating to section 310 the
following:
``Sec. 311. Remedial measures regarding evasion of duties by certain
entities in nonmarket economy countries.''.
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