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104th Congress                                            Rept. 104-524
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1
_______________________________________________________________________


 
                    SHIPBUILDING TRADE AGREEMENT ACT
_______________________________________________________________________


                 March 18, 1996.--Ordered to be printed

                                _______


    Mr. Archer, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2754]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Ways and Means, to whom was referred the 
bill (H.R. 2754) to approve and implement the OECD Shipbuilding 
Trade Agreement, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Shipbuilding Trade Agreement Act''.

SEC. 2. APPROVAL OF THE SHIPBUILDING AGREEMENT.

  The Congress approves The Agreement Respecting Normal Competitive 
Conditions in the Commercial Shipbuilding and Repair Industry 
(hereafter in this Act referred to as the ``Shipbuilding Agreement''), 
a reciprocal trade agreement which resulted from negotiations under the 
auspices of the Organization for Economic Cooperation and Development, 
and was entered into on December 21, 1994.

SEC. 3. EFFECTIVE DATE.

  This Act and the amendments made by this Act take effect on the date 
that the Shipbuilding Agreement enters into force with respect to the 
United States.

             TITLE I--INJURIOUS PRICING AND COUNTERMEASURES

SEC. 101. INJURIOUS PRICING AND COUNTERMEASURES PROCEEDINGS.

  The Tariff Act of 1930 is amended by adding at the end the following 
new title:

    ``TITLE VIII--INJURIOUS PRICING AND COUNTERMEASURES RELATING TO 
                              SHIPBUILDING

       ``Subtitle A--Injurious Pricing Charge and Countermeasures

        ``Sec. 801. Injurious pricing charge.
        ``Sec. 802. Procedures for initiating an injurious pricing 
                        investigation.
        ``Sec. 803. Preliminary determinations.
        ``Sec. 804. Termination or suspension of investigation.
        ``Sec. 805. Final determinations.
        ``Sec. 806. Imposition and collection of injurious pricing 
                        charge.
        ``Sec. 807. Imposition of countermeasures.
        ``Sec. 808. Injurious pricing petitions by third countries.

                      ``Subtitle B--Special Rules

        ``Sec. 821. Export price.
        ``Sec. 822. Normal value.
        ``Sec. 823. Currency conversion.

                        ``Subtitle C--Procedures

        ``Sec. 841. Hearings.
        ``Sec. 842. Determinations on the basis of the facts available.
        ``Sec. 843. Access to information.
        ``Sec. 844. Conduct of investigations.
        ``Sec. 845. Administrative action following shipbuilding 
                        agreement panel reports.

                       ``Subtitle D--Definitions

        ``Sec. 861. Definitions.

       ``Subtitle A--Injurious Pricing Charge and Countermeasures

``SEC. 801. INJURIOUS PRICING CHARGE.

  ``(a) Basis for Charge.--If--
          ``(1) the administering authority determines that a foreign 
        vessel has been sold directly or indirectly to one or more 
        United States buyers at less than its fair value, and
          ``(2) the Commission determines that--
                  ``(A) an industry in the United States--
                          ``(i) is or has been materially injured, or
                          ``(ii) is threatened with material injury, or
                  ``(B) the establishment of an industry in the United 
                States is or has been materially retarded,
        by reason of the sale of such vessel, then there shall be 
        imposed upon the foreign producer of the subject vessel an 
        injurious pricing charge, in an amount equal to the amount by 
        which the normal value exceeds the export price for the vessel. 
        For purposes of this subsection and section 805(b)(1), a 
        reference to the sale of a foreign vessel includes the creation 
        or transfer of an ownership interest in the vessel, except for 
        an ownership interest created or acquired solely for the 
        purpose of providing security for a normal commercial loan.
  ``(b) Foreign Vessels Not Merchandise.--No foreign vessel may be 
considered to be, or to be part of, a class or kind of merchandise for 
purposes of subtitle B of title VII.

``SEC. 802. PROCEDURES FOR INITIATING AN INJURIOUS PRICING 
                    INVESTIGATION.

  ``(a) Initiation by Administering Authority.--
          ``(1) General rule.--Except in the case in which subsection 
        (d)(6) applies, an injurious pricing investigation shall be 
        initiated whenever the administering authority determines, from 
        information available to it, that a formal investigation is 
        warranted into the question of whether the elements necessary 
        for the imposition of a charge under section 801(a) exist, and 
        whether a producer described in section 861(17)(C) would meet 
        the criteria of subsection (b)(1)(B) for a petitioner.
          ``(2) Time for initiation by administering authority.--An 
        investigation may only be initiated under paragraph (1) within 
        6 months after the time the administering authority first knew 
        or should have known of the sale of the vessel. Any period in 
        which subsection (d)(6)(A) applies shall not be included in 
        calculating that 6-month period.
  ``(b) Initiation by Petition.--
          ``(1) Petition requirements.--(A) Except in a case in which 
        subsection (d)(6) applies, an injurious pricing proceeding 
        shall be initiated whenever an interested party, as defined in 
        subparagraph (C), (D), (E), or (F) of section 861(17), files a 
        petition with the administering authority, on behalf of an 
        industry, which alleges the elements necessary for the 
        imposition of an injurious pricing charge under section 801(a) 
        and the elements required under subparagraph (B), (C), (D), or 
        (E) of this paragraph, and which is accompanied by information 
        reasonably available to the petitioner supporting those 
        allegations and identifying the transaction concerned.
          ``(B)(i) If the petitioner is a producer described in section 
        861(17)(C), and--
                  ``(I) if the vessel was sold through a broad multiple 
                bid, the petition shall include information indicating 
                that the petitioner was invited to tender a bid on the 
                contract at issue, the petitioner actually did so, and 
                the bid of the petitioner substantially met the 
                delivery date and technical requirements of the bid,
                  ``(II) if the vessel was sold through any bidding 
                process other than a broad multiple bid and the 
                petitioner was invited to tender a bid on the contract 
                at issue, the petition shall include information 
                indicating that the petitioner actually did so and the 
                bid of the petitioner substantially met the delivery 
                date and technical requirements of the bid, or
                  ``(III) except in a case in which the vessel was sold 
                through a broad multiple bid, if there is no invitation 
                to tender a bid, the petition shall include information 
                indicating that the petitioner was capable of building 
                the vessel concerned and, if the petitioner knew or 
                should have known of the proposed purchase, it made 
                demonstrable efforts to conclude a sale with the United 
                States buyer consistent with the delivery date and 
                technical requirements of the buyer.
          ``(ii) For purposes of clause (i)(III), there is a rebuttable 
        presumption that the petitioner knew or should have known of 
        the proposed purchase if it is demonstrated that--
                  ``(I) the majority of the producers in the industry 
                have made efforts with the United States buyer to 
                conclude a sale of the subject vessel, or
                  ``(II) general information on the sale was available 
                from brokers, financiers, classification societies, 
                charterers, trade associations, or other entities 
                normally involved in shipbuilding transactions with 
                whom the petitioner had regular contacts or dealings.
          ``(C) If the petitioner is an interested party described in 
        section 861(17)(D), the petition shall include information 
        indicating that members of the union or group of workers 
        described in that section are employed by a producer that meets 
        the requirements of subparagraph (B) of this paragraph.
          ``(D) If the petitioner is an interested party described in 
        section 861(17)(E), the petition shall include information 
        indicating that a member of the association described in that 
        section is a producer that meets the requirements of 
        subparagraph (B) of this paragraph.
          ``(E) If the petitioner is an interested party described in 
        section 861(17)(F), the petition shall include information 
        indicating that a member of the association described in that 
        section meets the requirements of subparagraph (C) or (D) of 
        this paragraph.
          ``(F) The petition may be amended at such time, and upon such 
        conditions, as the administering authority and the Commission 
        may permit.
          ``(2) Simultaneous filing with commission.--The petitioner 
        shall file a copy of the petition with the Commission on the 
        same day as it is filed with the administering authority.
          ``(3) Deadline for filing petition.--
                  ``(A) Deadline.--(i) A petitioner to which paragraph 
                (1)(B) (i) or (ii) applies shall file the petition no 
                later than the earlier of--
                          ``(I) 6 months after the time that the 
                        petitioner first knew or should have known of 
                        the sale of the subject vessel, or
                          ``(II) 6 months after delivery of the subject 
                        vessel.
                  ``(ii) A petitioner to which paragraph (1)(B)(iii) 
                applies shall--
                          ``(I) file the petition no later than the 
                        earlier of 9 months after the time that the 
                        petitioner first knew or should have known of 
                        the sale of the subject vessel, or 6 months 
                        after delivery of the subject vessel, and
                          ``(II) submit to the administering authority 
                        a notice of intent to file a petition no later 
                        than 6 months after the time that the 
                        petitioner first knew or should have known of 
                        the sale (unless the petition itself is filed 
                        within that 6-month period).
                  ``(B) Presumption of knowledge.--For purposes of this 
                paragraph, if the existence of the sale, together with 
                general information concerning the vessel, is published 
                in the international trade press, there is a rebuttable 
                presumption that the petitioner knew or should have 
                known of the sale of the vessel from the date of that 
                publication.
  ``(c) Actions Before Initiating Investigations.--
          ``(1) Notification of governments.--Before initiating an 
        investigation under either subsection (a) or (b), the 
        administering authority shall notify the government of the 
        exporting country of the investigation. In the case of the 
        initiation of an investigation under subsection (b), such 
        notification shall include a public version of the petition.
          ``(2) Acceptance of communications.--The administering 
        authority shall not accept any unsolicited oral or written 
        communication from any person other than an interested party 
        described in section 861(17)(C), (D), (E), or (F) before the 
        administering authority makes its decision whether to initiate 
        an investigation pursuant to a petition, except for inquiries 
        regarding the status of the administering authority's 
        consideration of the petition or a request for consultation by 
        the government of the exporting country.
          ``(3) Nondisclosure of certain information.--The 
        administering authority and the Commission shall not disclose 
        information with regard to any draft petition submitted for 
        review and comment before it is filed under subsection (b)(1).
  ``(d) Petition Determination.--
           ``(1) Time for initial determination.--(A) Within 45 days 
        after the date on which a petition is filed under subsection 
        (b), the administering authority shall, after examining, on the 
        basis of sources readily available to the administering 
        authority, the accuracy and adequacy of the evidence provided 
        in the petition, determine whether the petition--
                  ``(i) alleges the elements necessary for the 
                imposition of an injurious pricing charge under section 
                801(a) and the elements required under subsection 
                (b)(1)(B), (C), (D), or (E), and contains information 
                reasonably available to the petitioner supporting the 
                allegations; and
                  ``(ii) determine if the petition has been filed by or 
                on behalf of the industry.
          ``(B) Any period in which paragraph (6)(A) applies shall not 
        be included in calculating the 45-day period described in 
        subparagraph (A).
          ``(2) Affirmative determinations.--If the determinations 
        under clauses (i) and (ii) of paragraph (1)(A) are affirmative, 
        the administering authority shall initiate an investigation to 
        determine whether the vessel was sold at less than fair value, 
        unless paragraph (6) applies.
          ``(3) Negative determinations.--If--
                  ``(A) the determination under clause (i) or (ii) of 
                paragraph (1)(A) is negative, or
                  ``(B) paragraph (6)(B) applies,
        the administering authority shall dismiss the petition, 
        terminate the proceeding, and notify the petitioner in writing 
        of the reasons for the determination.
          ``(4) Determination of industry support.--
                  ``(A) General rule.--For purposes of this subsection, 
                the administering authority shall determine that the 
                petition has been filed by or on behalf of the domestic 
                industry, if--
                          ``(i) the domestic producers or workers who 
                        support the petition collectively account for 
                        at least 25 percent of the total capacity of 
                        domestic producers capable of producing a like 
                        vessel, and
                          ``(ii) the domestic producers or workers who 
                        support the petition collectively account for 
                        more than 50 percent of the total capacity to 
                        produce a like vessel of that portion of the 
                        domestic industry expressing support for or 
                        opposition to the petition.
                  ``(B) Certain positions disregarded.--In determining 
                industry support under subparagraph (A), the 
                administering authority shall disregard the position of 
                domestic producers who oppose the petition, if such 
                producers are related to the foreign producer or United 
                States buyer of the subject vessel, or the domestic 
                producer is itself the United States buyer, unless such 
                domestic producers demonstrate that their interests as 
                domestic producers would be adversely affected by the 
                imposition of an injurious pricing charge.
                  ``(C) Polling the industry.--If the petition does not 
                establish support of domestic producers or workers 
                accounting for more than 50 percent of the total 
                capacity to produce a like vessel--
                          ``(i) the administering authority shall poll 
                        the industry or rely on other information in 
                        order to determine if there is support for the 
                        petition as required by subparagraph (A), or
                          ``(ii) if there is a large number of 
                        producers in the industry, the administering 
                        authority may determine industry support for 
                        the petition by using any statistically valid 
                        sampling method to poll the industry.
                  ``(D) Comments by interested parties.--Before the 
                administering authority makes a determination with 
                respect to initiating an investigation, any person who 
                would qualify as an interested party under section 
                861(17) if an investigation were initiated, may submit 
                comments or information on the issue of industry 
                support. After the administering authority makes a 
                determination with respect to initiating an 
                investigation, the determination regarding industry 
                support shall not be reconsidered.
          ``(5) Definition of domestic producers or workers.--For 
        purposes of this subsection, the term `domestic producers or 
        workers' means interested parties as defined in section 861(17) 
        (C), (D), (E), or (F).
          ``(6) Proceedings by wto members.--The administering 
        authority shall not initiate an investigation under this 
        section if, with respect to the vessel sale at issue, an 
        antidumping proceeding conducted by a WTO member who is not a 
        Shipbuilding Agreement Party--
                  ``(A) has been initiated and has been pending for not 
                more than one year, or
                  ``(B) has been completed and resulted in the 
                imposition of antidumping measures or a negative 
                determination with respect to whether the sale was at 
                less than fair value or with respect to injury.
  ``(e) Notification to Commission of Determination.--The administering 
authority shall--
          ``(1) notify the Commission immediately of any determination 
        it makes under subsection (a) or (d), and
          ``(2) if the determination is affirmative, make available to 
        the Commission such information as it may have relating to the 
        matter under investigation, under such procedures as the 
        administering authority and the Commission may establish to 
        prevent disclosure, other than with the consent of the party 
        providing it or under protective order, of any information to 
        which confidential treatment has been given by the 
        administering authority.

``SEC. 803. PRELIMINARY DETERMINATIONS.

  ``(a) Determination by Commission of Reasonable Indication of 
Injury.--
          ``(1) General rule.--Except in the case of a petition 
        dismissed by the administering authority under section 
        802(d)(3), the Commission, within the time specified in 
        paragraph (2), shall determine, based on the information 
        available to it at the time of the determination, whether there 
        is a reasonable indication that--
                  ``(A) an industry in the United States--
                          ``(i) is or has been materially injured, or
                          ``(ii) is threatened with material injury, or
                  ``(B) the establishment of an industry in the United 
                States is or has been materially retarded,
        by reason of the sale of the subject vessel. If the Commission 
        makes a negative determination under this paragraph, the 
        investigation shall be terminated.
          ``(2) Time for commission determination.--The Commission 
        shall make the determination described in paragraph (1) within 
        90 days after the date on which the petition is filed or, in 
        the case of an investigation initiated under section 802(a), 
        within 90 days after the date on which the Commission receives 
        notice from the administering authority that the investigation 
        has been initiated.
  ``(b) Preliminary Determination by Administering Authority.--
          ``(1) Period of injurious pricing investigation.--(A) The 
        administering authority shall make a determination, based upon 
        the information available to it at the time of the 
        determination, of whether there is a reasonable basis to 
        believe or suspect that the subject vessel was sold at less 
        than fair value.
          ``(B) If cost data is required to determine normal value on 
        the basis of a sale of a foreign like vessel that has not been 
        delivered on or before the date on which the administering 
        authority initiates the investigation, the administering 
        authority shall make its determination within 160 days after 
        the date of delivery of the foreign like vessel.
          ``(C) If normal value is to be determined on the basis of 
        constructed value, the administering authority shall make its 
        determination within 160 days after the date of delivery of the 
        subject vessel.
          ``(D) In cases in which subparagraph (B) or (C) does not 
        apply, the administering authority shall make its determination 
        within 160 days after the date on which the administering 
        authority initiates the investigation under section 802.
          ``(E) In no event shall the administering authority make its 
        determination before an affirmative determination is made by 
        the Commission under subsection (a).
          ``(2) De minimis injurious pricing margin.--In making a 
        determination under this subsection, the administering 
        authority shall disregard any injurious pricing margin that is 
        de minimis. For purposes of the preceding sentence, an 
        injurious pricing margin is de minimis if the administering 
        authority determines that the margin is less than 2 percent of 
        the export price.
  ``(c) Extension of Period in Extraordinarily Complicated Cases or for 
Good Cause.--
          ``(1) In general.--If--
                  ``(A) the administering authority concludes that the 
                parties concerned are cooperating and determines that--
                          ``(i) the case is extraordinarily complicated 
                        by reason of--
                                  ``(I) the novelty of the issues 
                                presented, or
                                  ``(II) the nature and extent of the 
                                information required, and
                          ``(ii) additional time is necessary to make 
                        the preliminary determination, or
                  ``(B) a party to the investigation requests an 
                extension and demonstrates good cause for the 
                extension,
        then the administering authority may postpone the time for 
        making its preliminary determination.
          ``(2) Length of postponement.--The preliminary determination 
        may be postponed under paragraph (1) (A) or (B) until not later 
        than the 190th day after--
                  ``(A) the date of delivery of the foreign like 
                vessel, if subsection (b)(1)(B) applies,
                  ``(B) the date of delivery of the subject vessel, if 
                subsection (b)(1)(C) applies, or
                  ``(C) the date on which the administering authority 
                initiates an investigation under section 802, in a case 
                in which subsection (b)(1)(D) applies.
          ``(3) Notice of postponement.--The administering authority 
        shall notify the parties to the investigation, not later than 
        20 days before the date on which the preliminary determination 
        would otherwise be required under subsection (b)(1), if it 
        intends to postpone making the preliminary determination under 
        paragraph (1). The notification shall include an explanation of 
        the reasons for the postponement, and notice of the 
        postponement shall be published in the Federal Register.
  ``(d) Effect of Determination by the Administering Authority.--If the 
preliminary determination of the administering authority under 
subsection (b) is affirmative, the administering authority shall--
          ``(1) determine an estimated injurious pricing margin, and
          ``(2) make available to the Commission all information upon 
        which its determination was based and which the Commission 
        considers relevant to its injury determination, under such 
        procedures as the administering authority and the Commission 
        may establish to prevent disclosure, other than with the 
        consent of the party providing it or under protective order, of 
        any information to which confidential treatment has been given 
        by the administering authority.
  ``(e) Notice of Determination.--Whenever the Commission or the 
administering authority makes a determination under this section, the 
Commission or the administering authority, as the case may be, shall 
notify the petitioner, and other parties to the investigation, and the 
Commission or the administering authority (whichever is appropriate) of 
its determination. The administering authority shall include with such 
notification the facts and conclusions on which its determination is 
based. Not later than 5 days after the date on which the determination 
is required to be made under subsection (a)(2), the Commission shall 
transmit to the administering authority the facts and conclusions on 
which its determination is based.

``SEC. 804. TERMINATION OR SUSPENSION OF INVESTIGATION.

  ``(a) Termination of Investigation Upon Withdrawal of Petition.--
          ``(1) In general.--Except as provided in paragraph (2), an 
        investigation under this subtitle may be terminated by either 
        the administering authority or the Commission, after notice to 
        all parties to the investigation, upon withdrawal of the 
        petition by the petitioner.
          ``(2) Limitation on termination by commission.--The 
        Commission may not terminate an investigation under paragraph 
        (1) before a preliminary determination is made by the 
        administering authority under section 803(b).
  ``(b) Termination of Investigations Initiated by Administering 
Authority.--The administering authority may terminate any investigation 
initiated by the administering authority under section 802(a) after 
providing notice of such termination to all parties to the 
investigation.
  ``(c) Alternate Equivalent Remedy.--The criteria set forth in 
subparagraphs (A) through (D) of section 806(e)(1) shall apply to any 
agreement that forms the basis for termination of an investigation 
under subsection (a) or (b).
  ``(d) Proceedings by WTO Members.--
          ``(1) Suspension of investigation.--The administering 
        authority and the Commission shall suspend an investigation 
        under this section if a WTO member that is not a Shipbuilding 
        Agreement Party initiates an antidumping proceeding described 
        in section 861(29)(A) with respect to the sale of the subject 
        vessel.
          ``(2) Termination of investigation.--If an antidumping 
        proceeding described in paragraph (1) is concluded by--
                  ``(A) the imposition of antidumping measures, or
                  ``(B) a negative determination with respect to 
                whether the sale is at less than fair value or with 
                respect to injury,
        the administering authority and the Commission shall terminate 
        the investigation under this section.
          ``(3) Continuation of investigation.--(A) If such a 
        proceeding--
                  ``(i) is concluded by a result other than a result 
                described in paragraph (2), or
                  ``(ii) is not concluded within one year from the date 
                of the initiation of the proceeding,
        then the administering authority and the Commission shall 
        terminate the suspension and continue the investigation. The 
        period in which the investigation was suspended shall not be 
        included in calculating deadlines applicable with respect to 
        the investigation.
          ``(B) Notwithstanding subparagraph (A)(ii), if the proceeding 
        is concluded by a result described in paragraph (2)(A), the 
        administering authority and the Commission shall terminate the 
        investigation under this section.

``SEC. 805. FINAL DETERMINATIONS.

  ``(a) Determinations by Administering Authority.--
          ``(1) In general.--Within 75 days after the date of its 
        preliminary determination under section 803(b), the 
        administering authority shall make a final determination of 
        whether the vessel which is the subject of the investigation 
        has been sold in the United States at less than its fair value.
          ``(2) Extension of period for determination.--(A) The 
        administering authority may postpone making the final 
        determination under paragraph (1) until not later than 290 days 
        after--
                  ``(i) the date of delivery of the foreign like 
                vessel, in an investigation to which section 
                803(b)(1)(B) applies,
                  ``(ii) the date of delivery of the subject vessel, in 
                an investigation to which section 803(b)(1)(C) applies, 
                or
                  ``(iii) the date on which the administering authority 
                initiates the investigation under section 802, in an 
                investigation to which section 803(b)(1)(D) applies.
          ``(B) The administering authority may apply subparagraph (A) 
        if a request in writing is made by--
                  ``(i) the producer of the subject vessel, in a 
                proceeding in which the preliminary determination by 
                the administering authority under section 803(b) was 
                affirmative, or
                  ``(ii) the petitioner, in a proceeding in which the 
                preliminary determination by the administering 
                authority under section 803(b) was negative.
          ``(3) De minimis injurious pricing margin.--In making a 
        determination under this subsection, the administering 
        authority shall disregard any injurious pricing margin that is 
        de minimis as defined in section 803(b)(2).
  ``(b) Final Determination by Commission.--
          ``(1) In general.--The Commission shall make a final 
        determination of whether--
                  ``(A) an industry in the United States--
                          ``(i) is or has been materially injured, or
                          ``(ii) is threatened with material injury, or
                  ``(B) the establishment of an industry in the United 
                States is or has been materially retarded,
        by reason of the sale of the vessel with respect to which the 
        administering authority has made an affirmative determination 
        under subsection (a)(1).
          ``(2) Period for injury determination following affirmative 
        preliminary determination by administering authority.--If the 
        preliminary determination by the administering authority under 
        section 803(b) is affirmative, then the Commission shall make 
        the determination required by paragraph (1) before the later 
        of--
                  ``(A) the 120th day after the day on which the 
                administering authority makes its affirmative 
                preliminary determination under section 803(b), or
                  ``(B) the 45th day after the day on which the 
                administering authority makes its affirmative final 
                determination under subsection (a).
          ``(3) Period for injury determination following negative 
        preliminary determination by administering authority.--If the 
        preliminary determination by the administering authority under 
        section 803(b) is negative, and its final determination under 
        subsection (a) is affirmative, then the final determination by 
        the Commission under this subsection shall be made within 75 
        days after the date of that affirmative final determination.
  ``(c) Effect of Final Determinations.--
          ``(1) Effect of affirmative determination by the 
        administering authority.--If the determination of the 
        administering authority under subsection (a) is affirmative, 
        then the administering authority shall--
                  ``(A) make available to the Commission all 
                information upon which such determination was based and 
                which the Commission considers relevant to its 
                determination, under such procedures as the 
                administering authority and the Commission may 
                establish to prevent disclosure, other than with the 
                consent of the party providing it or under protective 
                order, of any information to which confidential 
                treatment has been given by the administering 
                authority, and
                  ``(B) calculate an injurious pricing charge in an 
                amount equal to the amount by which the normal value 
                exceeds the export price of the subject vessel.
          ``(2) Issuance of order; effect of negative determination.--
        If the determinations of the administering authority and the 
        Commission under subsections (a)(1) and (b)(1) are affirmative, 
        then the administering authority shall issue an injurious 
        pricing order under section 806. If either of such 
        determinations is negative, the investigation shall be 
        terminated upon the publication of notice of that negative 
        determination.
  ``(d) Publication of Notice of Determinations.--Whenever the 
administering authority or the Commission makes a determination under 
this section, it shall notify the petitioner, other parties to the 
investigation, and the other agency of its determination and of the 
facts and conclusions of law upon which the determination is based, and 
it shall publish notice of its determination in the Federal Register.
  ``(e) Correction of Ministerial Errors.--The administering authority 
shall establish procedures for the correction of ministerial errors in 
final determinations within a reasonable time after the determinations 
are issued under this section. Such procedures shall ensure opportunity 
for interested parties to present their views regarding any such 
errors. As used in this subsection, the term `ministerial error' 
includes errors in addition, subtraction, or other arithmetic function, 
clerical errors resulting from inaccurate copying, duplication, or the 
like, and any other type of unintentional error which the administering 
authority considers ministerial.

``SEC. 806. IMPOSITION AND COLLECTION OF INJURIOUS PRICING CHARGE.

  ``(a) In General.--Within 10 days after being notified by the 
Commission of an affirmative determination under section 805(b), the 
administering authority shall publish an order imposing an injurious 
pricing charge on the foreign producer of the subject vessel which--
          ``(1) directs the foreign producer of the subject vessel to 
        pay to the Secretary of the Treasury, or the designee of the 
        Secretary, within 180 days from the date of publication of the 
        order, an injurious pricing charge in an amount equal to the 
        amount by which the normal value exceeds the export price of 
        the subject vessel,
          ``(2) includes the identity and location of the foreign 
        producer and a description of the subject vessel, in such 
        detail as the administering authority deems necessary, and
          ``(3) informs the foreign producer that--
                  ``(A) failure to pay the injurious pricing charge in 
                a timely fashion may result in the imposition of 
                countermeasures with respect to that producer under 
                section 807,
                  ``(B) payment made after the deadline described in 
                paragraph (1) shall be subject to interest charges at 
                the Commercial Interest Reference Rate (CIRR), and
                  ``(C) the foreign producer may request an extension 
                of the due date for payment under subsection (b).
  ``(b) Extension of Due Date for Payment in Extraordinary 
Circumstances.--
          ``(1) Extension.--Upon request, the administering authority 
        may amend the order under subsection (a) to set a due date for 
        payment or payments later than the date that is 180 days from 
        the date of publication of the order, if the administering 
        authority determines that full payment in 180 days would render 
        the producer insolvent or would be incompatible with a 
        judicially supervised reorganization. When an extended payment 
        schedule provides for a series of partial payments, the 
        administering authority shall specify the circumstances under 
        which default on one or more payments will result in the 
        imposition of countermeasures.
          ``(2) Interest charges.--If a request is granted under 
        paragraph (1), payments made after the date that is 180 days 
        from the publication of the order shall be subject to interest 
        charges at the CIRR.
  ``(c) Notification of Order.--The administering authority shall 
deliver a copy of the order requesting payment to the foreign producer 
of the subject vessel and to an appropriate representative of the 
government of the exporting country.
  ``(d) Revocation of Order.--The administering authority--
          ``(1) may revoke an injurious pricing order if the 
        administering authority determines that producers accounting 
        for substantially all of the capacity to produce a domestic 
        like vessel have expressed a lack of interest in the order, and
          ``(2) shall revoke an injurious pricing order--
                  ``(A) if the sale of the vessel that was the subject 
                of the injurious pricing determination is voided,
                  ``(B) if the injurious pricing charge is paid in 
                full, including any interest accrued for late payment,
                  ``(C) upon full implementation of an alternative 
                equivalent remedy described in subsection (e), or
                  ``(D) if, with respect to the vessel sale that was at 
                issue in the investigation that resulted in the 
                injurious pricing order, an antidumping proceeding 
                conducted by a WTO member who is not a Shipbuilding 
                Agreement Party has been completed and resulted in the 
                imposition of antidumping measures.
  ``(e) Alternative Equivalent Remedy.--
          ``(1) Agreement for alternate remedy.--The administering 
        authority may suspend an injurious pricing order if the 
        administering authority enters into an agreement with the 
        foreign producer subject to the order on an alternative 
        equivalent remedy, that the administering authority 
        determines--
                  ``(A) is at least as effective a remedy as the 
                injurious pricing charge,
                  ``(B) is in the public interest,
                  ``(C) can be effectively monitored and enforced, and
                  ``(D) is otherwise consistent with the domestic law 
                and international obligations of the United States.
          ``(2) Prior consultations and submission of comments.--Before 
        entering into an agreement under paragraph (1), the 
        administering authority shall consult with the industry, and 
        provide for the submission of comments by interested parties, 
        with respect to the agreement.
          ``(3) Material violations of agreement.--If the injurious 
        pricing order has been suspended under paragraph (1), and the 
        administering authority determines that the foreign producer 
        concerned has materially violated the terms of the agreement 
        under paragraph (1), the administering authority shall 
        terminate the suspension.

``SEC. 807. IMPOSITION OF COUNTERMEASURES.

  ``(a) General Rule.--
          ``(1) Issuance of order imposing countermeasures.--Unless an 
        injurious pricing order is revoked or suspended under section 
        806 (d) or (e), the administering authority shall issue an 
        order imposing countermeasures.
          ``(2) Contents of order.--The countermeasure order shall--
                  ``(A) state that, as provided in section 468, a 
                permit to lade or unlade passengers or merchandise may 
                not be issued with respect to vessels contracted to be 
                built by the foreign producer of the vessel with 
                respect to which an injurious pricing order was issued 
                under section 806, and
                  ``(B) specify the scope and duration of the 
                prohibition on the issuance of a permit to lade or 
                unlade passengers or merchandise.
  ``(b) Notice of Intent To Impose Countermeasures.--
          ``(1) General rule.--The administering authority shall issue 
        a notice of intent to impose countermeasures not later than 30 
        days before the expiration of the time for payment specified in 
        the injurious pricing order (or extended payment provided for 
        under section 806(b)), and shall publish the notice in the 
        Federal Register within 7 days after issuing the notice.
          ``(2) Elements of the notice of intent.--The notice of intent 
        shall contain at least the following elements:
                  ``(A) Scope.--A permit to lade or unlade passengers 
                or merchandise may not be issued with respect to any 
                vessel--
                          ``(i) built by the foreign producer subject 
                        to the proposed countermeasures, and
                          ``(ii) with respect to which the material 
                        terms of sale are established within a period 
                        of 4 consecutive years beginning on the date 
                        that is 30 days after publication in the Fedeal 
                        Register of the notice of intent described in 
                        paragraph (1).
                  ``(B) Duration.--For each vessel described in 
                subparagraph (A), a permit to lade or unlade passengers 
                or merchandise may not be issued for a period of 4 
                years after the date of delivery of the vessel.
  ``(c) Determination To Impose Countermeasures; Order.--
          ``(1) General rule.--The administering authority shall, 
        within the time specified in paragraph (2), issue a 
        determination and order imposing countermeasures.
          ``(2) Time for determination.--The determination shall be 
        issued within 90 days after the date on which the notice of 
        intent to impose countermeasures under subsection (b) is 
        published in the Federal Register. The administering authority 
        shall publish the determination, and the order described in 
        paragraph (4), in the Federal Register within 7 days after 
        issuing the final determination, and shall provide a copy of 
        the determination and order to the Customs Service.
          ``(3) Content of the determination.--In the determination 
        imposing countermeasures, the administering authority shall 
        determine whether, in light of all of the circumstances, an 
        interested party has demonstrated that the scope or duration of 
        the countermeasures described in subsection (b)(2) should be 
        narrower or shorter than the scope or duration set forth in the 
        notice of intent to impose countermeasures.
          ``(4) Order.--At the same time it issues its determination, 
        the administering authority shall issue an order imposing 
        countermeasures, consistent with its determination.
  ``(d) Administrative Review of Determination To Impose 
Countermeasures.--
          ``(1) Request for review.--Each year, in the anniversary 
        month of the issuance of the order imposing countermeasures 
        under subsection (c), the administering authority shall publish 
        in the Federal Register a notice providing that interested 
        parties may request--
                  ``(A) a review of the scope or duration of the 
                countermeasures determined under subsection (c)(3), and
                  ``(B) a hearing in connection with such a review.
          ``(2) Review.--If a proper request has been received under 
        paragraph (1), the administering authority shall--
                  ``(A) publish notice of initiation of a review in the 
                Federal Register not later than 15 days after the end 
                of the anniversary month of the issuance of the order 
                imposing countermeasures, and
                  ``(B) review and determine whether the requesting 
                party has demonstrated that the scope or duration of 
                the countermeasures is excessive in light of all of the 
                circumstances.
          ``(3) Time for review.--The administering authority shall 
        make its determination under paragraph (2)(B) within 90 days 
        after the date on which the notice of initiation of the review 
        is published. If the determination under paragraph (2)(B) is 
        affirmative, the administering authority shall amend the order 
        accordingly. The administering authority shall promptly publish 
        the determination and any amendment to the order in the Federal 
        Register, and shall provide a copy of any amended order to the 
        Customs Service. In extraordinary circumstances, the 
        administering authority may extend the time for its 
        determination under paragraph (2)(B) to not later than 150 days 
        after the date on which the notice of initiation of the review 
        is published.
  ``(e) Extension of Countermeasures.--
          ``(1) Request for extension.--Within the time described in 
        paragraph (2), an interested party may file with the 
        administering authority a request that the scope or duration of 
        countermeasures be extended.
          ``(2) Deadline for request for extension.--
                  ``(A) Request for extension beyond 4 years.--If the 
                request seeks an extension that would cause the scope 
                or duration of countermeasures to exceed 4 years, 
                including any prior extensions, the request for 
                extension under paragraph (1) shall be filed not 
                earlier than the date that is 15 months, and not later 
                than the date that is 12 months, before the date that 
                marks the end of the period that specifies the vessels 
                that fall within the scope of the order by virtue of 
                the establishment of material terms of sale within that 
                period.
                  ``(B) Other requests.--If the request seeks an 
                extension under paragraph (1) other than one described 
                in subparagraph (A), the request shall be filed not 
                earlier than the date that is 6 months, and not later 
                than a date that is 3 months, before the date that 
                marks the end of the period referred to in subparagraph 
                (A).
          ``(3) Determination.--
                  ``(A) Notice of request for extension.--If a proper 
                request has been received under paragraph (1), the 
                administering authority shall publish notice of 
                initiation of an extension proceeding in the Federal 
                Register not later than 15 days after the applicable 
                deadline in paragraph (2) for requesting the extension.
                  ``(B) Procedures.--
                          ``(i) Requests for extension beyond 4 
                        years.--If paragraph (2)(A) applies to the 
                        request, the administering authority shall 
                        consult with the Trade Representative under 
                        paragraph (4).
                          ``(ii) Other requests.--If paragraph (2)(B) 
                        applies to the request, the administering 
                        authority shall determine, within 90 days after 
                        the date on which the notice of initiation of 
                        the proceeding is published, whether the 
                        requesting party has demonstrated that the 
                        scope or duration of the countermeasures is 
                        inadequate in light of all of the 
                        circumstances. If the administering authority 
                        determines that an extension is warranted, it 
                        shall amend the countermeasure order 
                        accordingly. The administering authority shall 
                        promptly publish the determination and any 
                        amendment to the order in the Federal Register, 
                        and shall provide a copy of any amended order 
                        to the Customs Service.
          ``(4) Consultation with trade representative.--If paragraph 
        (3)(B)(i) applies, the administering authority shall consult 
        with the Trade Representative concerning whether it would be 
        appropriate to request establishment of a dispute settlement 
        panel under the Shipbuilding Agreement for the purpose of 
        seeking authorization to extend the scope or duration of 
        countermeasures for a period in excess of 4 years.
          ``(5) Decision not to request panel.--If, based on 
        consultations under paragraph (4), the Trade Representative 
        decides not to request establishment of a panel, the Trade 
        Representative shall inform the party requesting the extension 
        of the countermeasures of the reasons for its decision in 
        writing. The decision shall not be subject to judicial review.
          ``(6) Panel proceedings.--If, based on consultations under 
        paragraph (4), the Trade Representative requests the 
        establishment of a panel under the Shipbuilding Agreement to 
        authorize an extension of the period of countermeasures, and 
        the panel authorizes such an extension, the administering 
        authority shall promptly amend the countermeasure order. The 
        administering authority shall publish notice of the amendment 
        in the Federal Register.
  ``(f) List of Vessels Subject to Countermeasures.--
          ``(1) General rule.--At least once during each 12-month 
        period beginning on the anniversary date of a determination to 
        impose countermeasures under this section, the administering 
        authority shall publish in the Federal Register a list of all 
        delivered vessels subject to countermeasures under the 
        determination.
          ``(2) Content of list.--The list under paragraph (1) shall 
        include the following information for each vessel, to the 
        extent the information is available:
                  ``(A) The name and general description of the vessel.
                  ``(B) The vessel identification number.
                  ``(C) The shipyard where the vessel was constructed.
                  ``(D) The last-known registry of the vessel.
                  ``(E) The name and address of the last-known owner of 
                the vessel.
                  ``(F) The delivery date of the vessel.
                  ``(G) The remaining duration of countermeasures on 
                the vessel.
                  ``(H) Any other identifying information available.
          ``(3) Amendment of list.---The administering authority may 
        amend the list from time to time to reflect new information 
        that comes to its attention and shall publish any amendments in 
        the Federal Register.
          ``(4) Service of list and amendments.--(A) The administering 
        authority shall serve a copy of the list described in paragraph 
        (1) on--
                  ``(i) the petitioner under section 802(b),
                  ``(ii) the United States Customs Service,
                  ``(iii) the Secretariat of the Organization for 
                Economic Cooperation and Development,
                  ``(iv) the owners of vessels on the list,
                  ``(v) the shipyards on the list, and
                  ``(vi) the government of the country in which a 
                shipyard on the list is located.
          ``(B) The administering authority shall serve a copy of any 
        amendments to the list under paragraph (3) or subsection (g)(3) 
        on--
                  ``(i) the parties listed in clauses (i), (ii), and 
                (iii) of subparagraph (A), and,
                  ``(ii) if the amendment affects their interests, the 
                parties listed in clauses (iv), (v), and (vi) of 
                subparagraph (A).
  ``(g) Administrative Review of List of Vessels Subject to 
Countermeasures.--
          ``(1) Request for review.--(A) An interested party may 
        request in writing a review of the list described in subsection 
        (f)(1), including any amendments thereto, to determine 
        whether--
                  ``(i) a vessel included in the list does not fall 
                within the scope of the applicable countermeasure order 
                and should be deleted, or
                  ``(ii) a vessel not included in the list falls within 
                the scope of the applicable countermeasure order and 
                should be added.
          ``(B) Any request seeking a determination described in 
        subparagraph (A)(i) shall be made within 90 days after the date 
        of publication of the applicable list.
          ``(2) Review.--If a proper request for review has been 
        received, the administering authority shall--
                  ``(A) publish notice of initiation of a review in the 
                Federal Register--
                          ``(i) not later than 15 days after the 
                        request is received, or
                          ``(ii) if the request seeks a determination 
                        described in paragraph (1)(A)(i), not later 
                        than 15 days after the deadline described in 
                        paragraph (1)(B), and
                  ``(B) review and determine whether the requesting 
                party has demonstrated that--
                          ``(i) a vessel included in the list does not 
                        qualify for such inclusion, or
                          ``(ii) a vessel not included in the list 
                        qualifies for inclusion.
          ``(3) Time for determination.--The administering authority 
        shall make its determination under paragraph (2)(B) within 90 
        days after the date on which the notice of initiation of such 
        review is published. If the administering authority determines 
        that a vessel should be added or deleted from the list, the 
        administering authority shall amend the list accordingly. The 
        administering authority shall promptly publish in the Federal 
        Register the determination and any such amendment to the list.
  ``(h) Expiration of Countermeasures.--Upon expiration of a 
countermeasure order imposed under this section, the administering 
authority shall promptly publish a notice of the expiration in the 
Federal Register.
  ``(i) Suspension or Termination of Proceedings or Countermeasures; 
Temporary Reduction of Countermeasures.--
          ``(1) If injurious pricing order revoked or suspended.--If an 
        injurious pricing order has been revoked or suspended under 
        section 806(d) or (e), the administering authority shall, as 
        appropriate, suspend or terminate proceedings under this 
        section with respect to that order, or suspend or revoke a 
        countermeasure order issued with respect to that injurious 
        pricing order.
          ``(2) If payment date amended.--(A) Subject to subparagraph 
        (C), if the payment date under an injurious pricing order is 
        amended under section 845, the administering authority shall, 
        as appropriate, suspend proceedings or modify deadlines under 
        this section, or suspend or amend a countermeasure order issued 
        with respect to that injurious pricing order.
          ``(B) In taking action under subparagraph (A), the 
        administering authority shall ensure that countermeasures are 
        not applied before the date that is 30 days after publication 
        in the Federal Register of the amended payment date.
          ``(C) If--
                  ``(i) a countermeasure order is issued under 
                subsection (c) before an amendment is made under 
                section 845 to the payment date of the injurious 
                pricing order to which the countermeasure order 
                applies, and
                  ``(ii) the administering authority determines that 
                the period of time between the original payment date 
                and the amended payment date is significant for 
                purposes of determining the appropriate scope or 
                duration of countermeasures,
        the administering authority may, in lieu of acting under 
        subparagraph (A), reinstitute proceedings under subsection (c) 
        for purposes of issuing a new determination under that 
        subsection.
  ``(j) Comment and Hearing.--In the course of any proceeding under 
subsection (c), (d), (e), or (g), the administering authority--
          ``(1) shall solicit comments from interested parties, and
          ``(2)(A) in a proceeding under subsection (c) or (d), upon 
        the request of an interested party, shall hold a hearing in 
        accordance with section 841(b) in connection with that 
        proceeding, or
          ``(B) in a proceeding under subsection (e) or (g), upon the 
        request of an interested party, may hold a hearing in 
        accordance with section 841(b) in connection with that 
        proceeding.

``SEC. 808. INJURIOUS PRICING PETITIONS BY THIRD COUNTRIES.

  ``(a) Filing of Petition.--The government of a Shipbuilding Agreement 
Party may file with the Trade Representative a petition requesting that 
an investigation be conducted to determine if--
          ``(1) a vessel from another Shipbuilding Agreement Party has 
        been sold in the United States at less than fair value, and
          ``(2) an industry, in the petitioning country, producing or 
        capable of producing a like vessel is materially injured by 
        reason of such sale.
  ``(b) Initiation.--The Trade Representative, after consultation with 
the administering authority and the Commission and obtaining the 
approval of the Parties Group under the Shipbuilding Agreement, shall 
determine whether to initiate an investigation described in subsection 
(a).
  ``(c) Determinations.--Upon initiation of an investigation under 
subsection (a), the Trade Representative shall request the following 
determinations be made in accordance with substantive and procedural 
requirements specified by the Trade Representative, notwithstanding any 
other provision of this title:
          ``(1) The administering authority shall determine whether the 
        subject vessel has been sold at less than fair value.
          ``(2) The Commission shall determine whether an industry in 
        the petitioning country is materially injured by reason of the 
        sale of the subject vessel in the United States.
  ``(d) Public Comment.--An opportunity for public comment shall be 
provided, as appropriate--
          ``(1) by the Trade Representative, in making the 
        determinations required by subsection (b), and
          ``(2) by the administering authority and the Commission, in 
        making the determinations required by subsection (c).
  ``(e) Issuance of Order.--If the administering authority makes an 
affirmative determination under paragraph (1) of subsection (c), and 
the Commission makes an affirmative determination under paragraph (2) 
of subsection (c), the administering authority shall--
          ``(1) order an injurious pricing charge in accordance with 
        section 806, and
          ``(2) make such determinations and take such other actions as 
        are required by sections 806 and 807, as if affirmative 
        determinations had been made under subsections (a) and (b) of 
        section 805.
  ``(f) Reviews of Determinations.--For purposes of review under 
section 516B, if an order is issued under subsection (e)--
          ``(1) the final determinations of the administering authority 
        and the Commission under subsection (c) shall be treated as 
        final determinations made under section 805, and
          ``(2) determinations of the administering authority under 
        subsection (e)(2) shall be treated as determinations made under 
        section 806 or 807, as the case may be.
  ``(g) Access to Information.--Section 843 shall apply to 
investigations under this section, to the extent specified by the Trade 
Representative, after consultation with the administering authority and 
the Commission.

                      ``Subtitle B--Special Rules

``SEC. 821. EXPORT PRICE.

  ``(a) Export Price.--For purposes of this title, the term `export 
price' means the price at which the subject vessel is first sold (or 
agreed to be sold) by or for the account of the foreign producer of the 
subject vessel to an unaffiliated United States buyer. The term `sold 
(or agreed to be sold) by or for the account of the foreign producer' 
includes any transfer of an ownership interest, including by way of 
lease or long-term bareboat charter, in conjunction with the original 
transfer from the producer, either directly or indirectly, to a United 
States buyer.
  ``(b) Adjustments to Export Price.--The price used to establish 
export price shall be--
          ``(1) increased by the amount of any import duties imposed by 
        the country of exportation which have been rebated, or which 
        have not been collected, by reason of the exportation of the 
        subject vessel, and
          ``(2) reduced by--
                  ``(A) the amount, if any, included in such price, 
                attributable to any additional costs, charges, or 
                expenses which are incident to bringing the subject 
                vessel from the shipyard in the exporting country to 
                the place of delivery,
                  ``(B) the amount, if included in such price, of any 
                export tax, duty, or other charge imposed by the 
                exporting country on the exportation of the subject 
                vessel, and
                  ``(C) all other expenses incidental to placing the 
                vessel in condition for delivery to the buyer.

``SEC. 822. NORMAL VALUE.

  ``(a) Determination.--In determining under this title whether a 
subject vessel has been sold at less than fair value, a fair comparison 
shall be made between the export price and normal value of the subject 
vessel. In order to achieve a fair comparison with the export price, 
normal value shall be determined as follows:
          ``(1) Determination of normal value.--
                  ``(A) In general.--The normal value of the subject 
                vessel shall be the price described in subparagraph 
                (B), at a time reasonably corresponding to the time of 
                the sale used to determine the export price under 
                section 821(a).
                  ``(B) Price.--The price referred to in subparagraph 
                (A) is--
                          ``(i) the price at which a foreign like 
                        vessel is first sold in the exporting country, 
                        in the ordinary course of trade and, to the 
                        extent practicable, at the same level of trade, 
                        or
                          ``(ii) in a case to which subparagraph (C) 
                        applies, the price at which a foreign like 
                        vessel is so sold for consumption in a country 
                        other than the exporting country or the United 
                        States, if--
                                  ``(I) such price is representative, 
                                and
                                  ``(II) the administering authority 
                                does not determine that the particular 
                                market situation in such other country 
                                prevents a proper comparison with the 
                                export price.
                  ``(C) Third country sales.--This subparagraph applies 
                when--
                          ``(i) a foreign like vessel is not sold in 
                        the exporting country as described in 
                        subparagraph (B)(i), or
                          ``(ii) the particular market situation in the 
                        exporting country does not permit a proper 
                        comparison with the export price.
                  ``(D) Contemporaneous sale.--For purposes of 
                subparagraph (A), `a time reasonably corresponding to 
                the time of the sale' means within 3 months before or 
                after the sale of the subject vessel or, in the absence 
                of such sales, such longer period as the administering 
                authority determines would be appropriate.
          ``(2) Fictitious markets.--No pretended sale, and no sale 
        intended to establish a fictitious market, shall be taken into 
        account in determining normal value.
          ``(3) Use of constructed value.--If the administering 
        authority determines that the normal value of the subject 
        vessel cannot be determined under paragraph (1)(B) or (1)(C), 
        then the normal value of the subject vessel shall be the 
        constructed value of that vessel, as determined under 
        subsection (e).
          ``(4) Indirect sales.--If a foreign like vessel is sold 
        through an affiliated party, the price at which the foreign 
        like vessel is sold by such affiliated party may be used in 
        determining normal value.
          ``(5) Adjustments.--The price described in paragraph (1)(B) 
        shall be--
                  ``(A) reduced by--
                          ``(i) the amount, if any, included in the 
                        price described in paragraph (1)(B), 
                        attributable to any costs, charges, and 
                        expenses incident to bringing the foreign like 
                        vessel from the shipyard to the place of 
                        delivery to the purchaser,
                          ``(ii) the amount of any taxes imposed 
                        directly upon the foreign like vessel or 
                        components thereof which have been rebated, or 
                        which have not been collected, on the subject 
                        vessel, but only to the extent that such taxes 
                        are added to or included in the price of the 
                        foreign like vessel, and
                          ``(iii) the amount of all other expenses 
                        incidental to placing the foreign like vessel 
                        in condition for delivery to the buyer, and
                  ``(B) increased or decreased by the amount of any 
                difference (or lack thereof) between the export price 
                and the price described in paragraph (1)(B) (other than 
                a difference for which allowance is otherwise provided 
                under this section) that is established to the 
                satisfaction of the administering authority to be 
                wholly or partly due to--
                          ``(i) physical differences between the 
                        subject vessel and the vessel used in 
                        determining normal value, or
                          ``(ii) other differences in the circumstances 
                        of sale.
          ``(6) Adjustments for level of trade.--The price described in 
        paragraph (1)(B) shall also be increased or decreased to make 
        due allowance for any difference (or lack thereof) between the 
        export price and the price described in paragraph (1)(B) (other 
        than a difference for which allowance is otherwise made under 
        this section) that is shown to be wholly or partly due to a 
        difference in level of trade between the export price and 
        normal value, if the difference in level of trade--
                  ``(A) involves the performance of different selling 
                activities, and
                  ``(B) is demonstrated to affect price comparability, 
                based on a pattern of consistent price differences 
                between sales at different levels of trade in the 
                country in which normal value is determined.
        In a case described in the preceding sentence, the amount of 
        the adjustment shall be based on the price differences between 
        the two levels of trade in the country in which normal value is 
        determined.
          ``(7) Adjustments to constructed value.--Constructed value as 
        determined under subsection (d) may be adjusted, as 
        appropriate, pursuant to this subsection.
  ``(b) Sales at Less Than Cost of Production.--
          ``(1) Determination; sales disregarded.--Whenever the 
        administering authority has reasonable grounds to believe or 
        suspect that the sale of the foreign like vessel under 
        consideration for the determination of normal value has been 
        made at a price which represents less than the cost of 
        production of the foreign like vessel, the administering 
        authority shall determine whether, in fact, such sale was made 
        at less than the cost of production. If the administering 
        authority determines that the sale was made at less than the 
        cost of production and was not at a price which permits 
        recovery of all costs within 5 years, such sale may be 
        disregarded in the determination of normal value. Whenever such 
        a sale is disregarded, normal value shall be based on another 
        sale of a foreign like vessel in the ordinary course of trade. 
        If no sales made in the ordinary course of trade remain, the 
        normal value shall be based on the constructed value of the 
        subject vessel.
          ``(2) Definitions and special rules.--For purposes of this 
        subsection:
                  ``(A) Reasonable grounds to believe or suspect.--
                There are reasonable grounds to believe or suspect that 
                the sale of a foreign like vessel was made at a price 
                that is less than the cost of production of the vessel, 
                if an interested party described in subparagraph (C), 
                (D), (E), or (F) of section 861(17) provides 
                information, based upon observed prices or constructed 
                prices or costs, that the sale of the foreign like 
                vessel under consideration for the determination of 
                normal value has been made at a price which represents 
                less than the cost of production of the vessel.
                  ``(B) Recovery of costs.--If the price is below the 
                cost of production at the time of sale but is above the 
                weighted average cost of production for the period of 
                investigation, such price shall be considered to 
                provide for recovery of costs within 5 years.
          ``(3) Calculation of cost of production.--For purposes of 
        this section, the cost of production shall be an amount equal 
        to the sum of--
                  ``(A) the cost of materials and of fabrication or 
                other processing of any kind employed in producing the 
                foreign like vessel, during a period which would 
                ordinarily permit the production of that vessel in the 
                ordinary course of business, and
                  ``(B) an amount for selling, general, and 
                administrative expenses based on actual data pertaining 
                to the production and sale of the foreign like vessel 
                by the producer in question.
        For purposes of subparagraph (A), if the normal value is based 
        on the price of the foreign like vessel sold in a country other 
        than the exporting country, the cost of materials shall be 
        determined without regard to any internal tax in the exporting 
        country imposed on such materials or on their disposition which 
        are remitted or refunded upon exportation.
  ``(c) Nonmarket Economy Countries.--
          ``(1) In general.--If--
                  ``(A) the subject vessel is produced in a nonmarket 
                economy country, and
                  ``(B) the administering authority finds that 
                available information does not permit the normal value 
                of the subject vessel to be determined under subsection 
                (a),
        the administering authority shall determine the normal value of 
        the subject vessel on the basis of the value of the factors of 
        production utilized in producing the vessel and to which shall 
        be added an amount for general expenses and profit plus the 
        cost of expenses incidental to placing the vessel in a 
        condition for delivery to the buyer. Except as provided in 
        paragraph (2), the valuation of the factors of production shall 
        be based on the best available information regarding the values 
        of such factors in a market economy country or countries 
        considered to be appropriate by the administering authority.
          ``(2) Exception.--If the administering authority finds that 
        the available information is inadequate for purposes of 
        determining the normal value of the subject vessel under 
        paragraph (1), the administering authority shall determine the 
        normal value on the basis of the price at which a vessel that 
        is--
                  ``(A) comparable to the subject vessel, and
                  ``(B) produced in one or more market economy 
                countries that are at a level of economic development 
                comparable to that of the nonmarket economy country,
        is sold in other countries, including the United States.
          ``(3) Factors of production.--For purposes of paragraph (1), 
        the factors of production utilized in producing the vessel 
        include, but are not limited to--
                  ``(A) hours of labor required,
                  ``(B) quantities of raw materials employed,
                  ``(C) amounts of energy and other utilities consumed, 
                and
                  ``(D) representative capital cost, including 
                depreciation.
          ``(4) Valuation of factors of production.--The administering 
        authority, in valuing factors of production under paragraph 
        (1), shall utilize, to the extent possible, the prices or costs 
        of factors of production in one or more market economy 
        countries that are--
                  ``(A) at a level of economic development comparable 
                to that of the nonmarket economy country, and
                  ``(B) significant producers of comparable vessels.
  ``(d) Special Rule for Certain Multinational Corporations.--Whenever, 
in the course of an investigation under this title, the administering 
authority determines that--
          ``(1) the subject vessel was produced in facilities which are 
        owned or controlled, directly or indirectly, by a person, firm, 
        or corporation which also owns or controls, directly or 
        indirectly, other facilities for the production of a foreign 
        like vessel which are located in another country or countries,
          ``(2) subsection (a)(1)(C) applies, and
          ``(3) the normal value of a foreign like vessel produced in 
        one or more of the facilities outside the exporting country is 
        higher than the normal value of the foreign like vessel 
        produced in the facilities located in the exporting country,
the administering authority shall determine the normal value of the 
subject vessel by reference to the normal value at which a foreign like 
vessel is sold from one or more facilities outside the exporting 
country. The administering authority, in making any determination under 
this subsection, shall make adjustments for the difference between the 
costs of production (including taxes, labor, materials, and overhead) 
of the foreign like vessel produced in facilities outside the exporting 
country and costs of production of the foreign like vessel produced in 
facilities in the exporting country, if such differences are 
demonstrated to its satisfaction.
  ``(e) Constructed Value.--
          ``(1) In general.--For purposes of this title, the 
        constructed value of a subject vessel shall be an amount equal 
        to the sum of--
                  ``(A) the cost of materials and fabrication or other 
                processing of any kind employed in producing the 
                subject vessel, during a period which would ordinarily 
                permit the production of the vessel in the ordinary 
                course of business, and
                  ``(B)(i) the actual amounts incurred and realized by 
                the foreign producer of the subject vessel for selling, 
                general, and administrative expenses, and for profits, 
                in connection with the production and sale of a foreign 
                like vessel, in the ordinary course of trade, in the 
                domestic market of the country of origin of the subject 
                vessel, or
                  ``(ii) if actual data are not available with respect 
                to the amounts described in clause (i), then--
                          ``(I) the actual amounts incurred and 
                        realized by the foreign producer of the subject 
                        vessel for selling, general, and administrative 
                        expenses, and for profits, in connection with 
                        the production and sale of the same general 
                        category of vessel in the domestic market of 
                        the country of origin of the subject vessel,
                          ``(II) the weighted average of the actual 
                        amounts incurred and realized by producers in 
                        the country of origin of the subject vessel 
                        (other than the producer of the subject vessel) 
                        for selling, general, and administrative 
                        expenses, and for profits, in connection with 
                        the production and sale of a foreign like 
                        vessel, in the ordinary course of trade, in the 
                        domestic market, or
                          ``(III) if data is not available under 
                        subclause (I) or (II), the amounts incurred and 
                        realized for selling, general, and 
                        administrative expenses, and for profits, based 
                        on any other reasonable method, except that the 
                        amount allowed for profit may not exceed the 
                        amount normally realized by foreign producers 
                        (other than the producer of the subject vessel) 
                        in connection with the sale of vessels in the 
                        same general category of vessel as the subject 
                        vessel in the domestic market of the country of 
                        origin of the subject vessel.
        The profit shall, for purposes of this paragraph, be based on 
        the average profit realized over a reasonable period of time 
        before and after the sale of the subject vessel and shall 
        reflect a reasonable profit at the time of such sale. For 
        purposes of the preceding sentence, a `reasonable period of 
        time' shall not, except where otherwise appropriate, exceed 6 
        months before, or 6 months after, the sale of the subject 
        vessel. In calculating profit under this paragraph, any 
        distortion which would result in other than a profit which is 
        reasonable at the time of the sale shall be eliminated.
          ``(2) Costs and profits based on other reasonable methods.--
        When costs and profits are determined under paragraph 
        (1)(B)(ii)(III), such determination shall, except where 
        otherwise appropriate, be based on appropriate export sales by 
        the producer of the subject vessel or, absent such sales, to 
        export sales by other producers of a foreign like vessel or the 
        same general category of vessel as the subject vessel in the 
        country of origin of the subject vessel.
          ``(3) Costs of materials.--For purposes of paragraph (1)(A), 
        the cost of materials shall be determined without regard to any 
        internal tax in the exporting country imposed on such materials 
        or their disposition which are remitted or refunded upon 
        exportation of the subject vessel produced from such materials.
  ``(f) Special Rules for Calculation of Cost of Production and for 
Calculation of Constructed Value.--For purposes of subsections (b) and 
(e)--
          ``(1) Costs.--
                  ``(A) In general.--Costs shall normally be calculated 
                based on the records of the foreign producer of the 
                subject vessel, if such records are kept in accordance 
                with the generally accepted accounting principles of 
                the exporting country and reasonably reflect the costs 
                associated with the production and sale of the vessel. 
                The administering authority shall consider all 
                available evidence on proper allocation of costs, 
                including that which is made available by the foreign 
                producer on a timely basis, if such allocations have 
                been historically used by the foreign producer, in 
                particular for establishing appropriate amortization 
                and depreciation periods, and allowances for capital 
                expenditures and other development costs.
                  ``(B) Nonrecurring costs.--Costs shall be adjusted 
                appropriately for those nonrecurring costs that benefit 
                current or future production, or both.
                  ``(C) Startup costs.--
                          ``(i) In general.--Costs shall be adjusted 
                        appropriately for circumstances in which costs 
                        incurred during the time period covered by the 
                        investigation are affected by startup 
                        operations.
                          ``(ii) Startup operations.--Adjustments shall 
                        be made for startup operations only where--
                                  ``(I) a producer is using new 
                                production facilities or producing a 
                                new type of vessel that requires 
                                substantial additional investment, and
                                  ``(II) production levels are limited 
                                by technical factors associated with 
                                the initial phase of commercial 
                                production.
                        For purposes of subclause (II), the initial 
                        phase of commercial production ends at the end 
                        of the startup period. In determining whether 
                        commercial production levels have been 
                        achieved, the administering authority shall 
                        consider factors unrelated to startup 
                        operations that might affect the volume of 
                        production processed, such as demand, 
                        seasonality, or business cycles.
                          ``(iii) Adjustment for startup operations.--
                        The adjustment for startup operations shall be 
                        made by substituting the unit production costs 
                        incurred with respect to the vessel at the end 
                        of the startup period for the unit production 
                        costs incurred during the startup period. If 
                        the startup period extends beyond the period of 
                        the investigation under this title, the 
                        administering authority shall use the most 
                        recent cost of production data that it 
                        reasonably can obtain, analyze, and verify 
                        without delaying the timely completion of the 
                        investigation. For purposes of this 
                        subparagraph, the startup period ends at the 
                        point at which the level of commercial 
                        production that is characteristic of the 
                        vessel, the producer, or the industry is 
                        achieved.
                  ``(D) Costs due to extraordinary circumstances not 
                included.--Costs shall not include actual costs which 
                are due to extraordinary circumstances (including, but 
                not limited to, labor disputes, fire, and natural 
                disasters) and which are significantly over the cost 
                increase which the shipbuilder could have reasonably 
                anticipated and taken into account at the time of sale.
          ``(2) Transactions disregarded.--A transaction directly or 
        indirectly between affiliated persons may be disregarded if, in 
        the case of any element of value required to be considered, the 
        amount representing that element does not fairly reflect the 
        amount usually reflected in sales of a like vessel in the 
        market under consideration. If a transaction is disregarded 
        under the preceding sentence and no other transactions are 
        available for consideration, the determination of the amount 
        shall be based on the information available as to what the 
        amount would have been if the transaction had occurred between 
        persons who are not affiliated.
          ``(3) Major input rule.--If, in the case of a transaction 
        between affiliated persons involving the production by one of 
        such persons of a major input to the subject vessel, the 
        administering authority has reasonable grounds to believe or 
        suspect that an amount represented as the value of such input 
        is less than the cost of production of such input, then the 
        administering authority may determine the value of the major 
        input on the basis of the information available regarding such 
        cost of production, if such cost is greater than the amount 
        that would be determined for such input under paragraph (2).

``SEC. 823. CURRENCY CONVERSION.

  ``(a) In General.--In an injurious pricing proceeding under this 
title, the administering authority shall convert foreign currencies 
into United States dollars using the exchange rate in effect on the 
date of sale of the subject vessel, except that if it is established 
that a currency transaction on forward markets is directly linked to a 
sale under consideration, the exchange rate specified with respect to 
such foreign currency in the forward sale agreement shall be used to 
convert the foreign currency.
  ``(b) Date of Sale.--For purposes of this section, `date of sale' 
means the date of the contract of sale or, where appropriate, the date 
on which the material terms of sale are otherwise established. If the 
material terms of sale are significantly changed after such date, the 
date of sale is the date of such change. In the case of such a change 
in the date of sale, the administering authority shall make appropriate 
adjustments to take into account any unreasonable effect on the 
injurious pricing margin due only to fluctuations in the exchange rate 
between the original date of sale and the new date of sale.

                        ``Subtitle C--Procedures

``SEC. 841. HEARINGS.

  ``(a) Upon Request.--The administering authority and the Commission 
shall each hold a hearing in the course of an investigation under this 
title, upon the request of any party to the investigation, before 
making a final determination under section 805.
  ``(b) Procedures.--Any hearing required or permitted under this title 
shall be conducted after notice published in the Federal Register, and 
a transcript of the hearing shall be prepared and made available to the 
public. The hearing shall not be subject to the provisions of 
subchapter II of chapter 5 of title 5, United States Code, or to 
section 702 of such title.

``SEC. 842. DETERMINATIONS ON THE BASIS OF THE FACTS AVAILABLE.

  ``(a) In General.--If--
          ``(1) necessary information is not available on the record, 
        or
          ``(2) an interested party or any other person--
                  ``(A) withholds information that has been requested 
                by the administering authority or the Commission under 
                this title,
                  ``(B) fails to provide such information by the 
                deadlines for the submission of the information or in 
                the form and manner requested, subject to subsections 
                (b)(1) and (d) of section 844,
                  ``(C) significantly impedes a proceeding under this 
                title, or
                  ``(D) provides such information but the information 
                cannot be verified as provided in section 844(g),
        the administering authority and the Commission shall, subject 
        to section 844(c), use the facts otherwise available in 
        reaching the applicable determination under this title.
  ``(b) Adverse Inferences.--If the administering authority or the 
Commission (as the case may be) finds that an interested party has 
failed to cooperate by not acting to the best of its ability to comply 
with a request for information from the administering authority or the 
Commission, the administering authority or the Commission (as the case 
may be), in reaching the applicable determination under this title, may 
use an inference that is adverse to the interests of that party in 
selecting from among the facts otherwise available. Such adverse 
inference may include reliance on information derived from--
          ``(1) the petition, or
          ``(2) any other information placed on the record.
  ``(c) Corroboration of Secondary Information.--When the administering 
authority or the Commission relies on secondary information rather than 
on information obtained in the course of an investigation under this 
title, the administering authority and the Commission, as the case may 
be, shall, to the extent practicable, corroborate that information from 
independent sources that are reasonably at their disposal.

``SEC. 843. ACCESS TO INFORMATION.

  ``(a) Information Generally Made Available.--
          ``(1) Progress of investigation reports.--The administering 
        authority and the Commission shall, from time to time upon 
        request, inform the parties to an investigation under this 
        title of the progress of that investigation.
          ``(2) Ex parte meetings.--The administering authority and the 
        Commission shall maintain a record of any ex parte meeting 
        between--
                  ``(A) interested parties or other persons providing 
                factual information in connection with a proceeding 
                under this title, and
                  ``(B) the person charged with making the 
                determination, or any person charged with making a 
                final recommendation to that person, in connection with 
                that proceeding,
        if information relating to that proceeding was presented or 
        discussed at such meeting. The record of such an ex parte 
        meeting shall include the identity of the persons present at 
        the meeting, the date, time, and place of the meeting, and a 
        summary of the matters discussed or submitted. The record of 
        the ex parte meeting shall be included in the record of the 
        proceeding.
          ``(3) Summaries; non-proprietary submissions.--The 
        administering authority and the Commission shall disclose--
                  ``(A) any proprietary information received in the 
                course of a proceeding under this title if it is 
                disclosed in a form which cannot be associated with, or 
                otherwise be used to identify, operations of a 
                particular person, and
                  ``(B) any information submitted in connection with a 
                proceeding which is not designated as proprietary by 
                the person submitting it.
          ``(4) Maintenance of public record.--The administering 
        authority and the Commission shall maintain and make available 
        for public inspection and copying a record of all information 
        which is obtained by the administering authority or the 
        Commission, as the case may be, in a proceeding under this 
        title to the extent that public disclosure of the information 
        is not prohibited under this chapter or exempt from disclosure 
        under section 552 of title 5, United States Code.
  ``(b) Proprietary Information.--
          ``(1) Proprietary status maintained.--
                  ``(A) In general.--Except as provided in subsection 
                (a)(4) and subsection (c), information submitted to the 
                administering authority or the Commission which is 
                designated as proprietary by the person submitting the 
                information shall not be disclosed to any person 
                without the consent of the person submitting the 
                information, other than--
                          ``(i) to an officer or employee of the 
                        administering authority or the Commission who 
                        is directly concerned with carrying out the 
                        investigation in connection with which the 
                        information is submitted or any other 
                        proceeding under this title covering the same 
                        subject vessel, or
                          ``(ii) to an officer or employee of the 
                        United States Customs Service who is directly 
                        involved in conducting an investigation 
                        regarding fraud under this title.
                  ``(B) Additional requirements.--The administering 
                authority and the Commission shall require that 
                information for which proprietary treatment is 
                requested be accompanied by--
                          ``(i) either--
                                  ``(I) a nonproprietary summary in 
                                sufficient detail to permit a 
                                reasonable understanding of the 
                                substance of the information submitted 
                                in confidence, or
                                  ``(II) a statement that the 
                                information is not susceptible to 
                                summary, accompanied by a statement of 
                                the reasons in support of the 
                                contention, and
                          ``(ii) either--
                                  ``(I) a statement which permits the 
                                administering authority or the 
                                Commission to release under 
                                administrative protective order, in 
                                accordance with subsection (c), the 
                                information submitted in confidence, or
                                  ``(II) a statement to the 
                                administering authority or the 
                                Commission that the business 
                                proprietary information is of a type 
                                that should not be released under 
                                administrative protective order.
          ``(2) Unwarranted designation.--If the administering 
        authority or the Commission determines, on the basis of the 
        nature and extent of the information or its availability from 
        public sources, that designation of any information as 
        proprietary is unwarranted, then it shall notify the person who 
        submitted it and ask for an explanation of the reasons for the 
        designation. Unless that person persuades the administering 
        authority or the Commission that the designation is warranted, 
        or withdraws the designation, the administering authority or 
        the Commission, as the case may be, shall return it to the 
        party submitting it. In a case in which the administering 
        authority or the Commission returns the information to the 
        person submitting it, the person may thereafter submit other 
        material concerning the subject matter of the returned 
        information if the submission is made within the time otherwise 
        provided for submitting such material.
  ``(c) Limited Disclosure of Certain Proprietary Information Under 
Protective Order.--
          ``(1) Disclosure by administering authority or commission.--
                  ``(A) In general.--Upon receipt of an application 
                (before or after receipt of the information requested) 
                which describes in general terms the information 
                requested and sets forth the reasons for the request, 
                the administering authority or the Commission shall 
                make all business proprietary information presented to, 
                or obtained by it, during a proceeding under this title 
                (except privileged information, classified information, 
                and specific information of a type for which there is a 
                clear and compelling need to withhold from disclosure) 
                available to all interested parties who are parties to 
                the proceeding under a protective order described in 
                subparagraph (B), regardless of when the information is 
                submitted during the proceeding. Customer names (other 
                than the name of the United States buyer of the subject 
                vessel) obtained during any investigation which 
                requires a determination under section 805(b) may not 
                be disclosed by the administering authority under 
                protective order until either an order is published 
                under section 806(a) as a result of the investigation 
                or the investigation is suspended or terminated. The 
                Commission may delay disclosure of customer names 
                (other than the name of the United States buyer of the 
                subject vessel) under protective order during any such 
                investigation until a reasonable time before any 
                hearing provided under section 841 is held.
                  ``(B) Protective order.--The protective order under 
                which information is made available shall contain such 
                requirements as the administering authority or the 
                Commission may determine by regulation to be 
                appropriate. The administering authority and the 
                Commission shall provide by regulation for such 
                sanctions as the administering authority and the 
                Commission determine to be appropriate, including 
                disbarment from practice before the agency.
                  ``(C) Time limitations on determinations.--The 
                administering authority or the Commission, as the case 
                may be, shall determine whether to make information 
                available under this paragraph--
                          ``(i) not later than 14 days (7 days if the 
                        submission pertains to a proceeding under 
                        section 803(a)) after the date on which the 
                        information is submitted, or
                          ``(ii) if--
                                  ``(I) the person submitting the 
                                information raises objection to its 
                                release, or
                                  ``(II) the information is unusually 
                                voluminous or complex,
                        not later than 30 days (10 days if the 
                        submission pertains to a proceeding under 
                        section 803(a)) after the date on which the 
                        information is submitted.
                  ``(D) Availability after determination.--If the 
                determination under subparagraph (C) is affirmative, 
                then--
                          ``(i) the business proprietary information 
                        submitted to the administering authority or the 
                        Commission on or before the date of the 
                        determination shall be made available, subject 
                        to the terms and conditions of the protective 
                        order, on such date, and
                          ``(ii) the business proprietary information 
                        submitted to the administering authority or the 
                        Commission after the date of the determination 
                        shall be served as required by subsection (d).
                  ``(E) Failure to disclose.--If a person submitting 
                information to the administering authority refuses to 
                disclose business proprietary information which the 
                administering authority determines should be released 
                under a protective order described in subparagraph (B), 
                the administering authority shall return the 
                information, and any nonconfidential summary thereof, 
                to the person submitting the information and summary 
                and shall not consider either.
          ``(2) Disclosure under court order.--If the administering 
        authority or the Commission denies a request for information 
        under paragraph (1), then application may be made to the United 
        States Court of International Trade for an order directing the 
        administering authority or the Commission, as the case may be, 
        to make the information available. After notification of all 
        parties to the investigation and after an opportunity for a 
        hearing on the record, the court may issue an order, under such 
        conditions as the court deems appropriate, which shall not have 
        the effect of stopping or suspending the investigation, 
        directing the administering authority or the Commission to make 
        all or a portion of the requested information described in the 
        preceding sentence available under a protective order and 
        setting forth sanctions for violation of such order if the 
        court finds that, under the standards applicable in proceedings 
        of the court, such an order is warranted, and that--
                  ``(A) the administering authority or the Commission 
                has denied access to the information under subsection 
                (b)(1),
                  ``(B) the person on whose behalf the information is 
                requested is an interested party who is a party to the 
                investigation in connection with which the information 
                was obtained or developed, and
                  ``(C) the party which submitted the information to 
                which the request relates has been notified, in advance 
                of the hearing, of the request made under this section 
                and of its right to appear and be heard.
  ``(d) Service.--Any party submitting written information, including 
business proprietary information, to the administering authority or the 
Commission during a proceeding shall, at the same time, serve the 
information upon all interested parties who are parties to the 
proceeding, if the information is covered by a protective order. The 
administering authority or the Commission shall not accept any such 
information that is not accompanied by a certificate of service and a 
copy of the protective order version of the document containing the 
information. Business proprietary information shall only be served upon 
interested parties who are parties to the proceeding that are subject 
to protective order, except that a nonconfidential summary thereof 
shall be served upon all other interested parties who are parties to 
the proceeding.
  ``(e) Information Relating to Violations of Protective Orders and 
Sanctions.--The administering authority and the Commission may withhold 
from disclosure any correspondence, private letters of reprimand, 
settlement agreements, and documents and files compiled in relation to 
investigations and actions involving a violation or possible violation 
of a protective order issued under subsection (c), and such information 
shall be treated as information described in section 552(b)(3) of title 
5, United States Code.
  ``(f) Opportunity for Comment by Vessel Buyers.--The administering 
authority and the Commission shall provide an opportunity for buyers of 
subject vessels to submit relevant information to the administering 
authority concerning a sale at less than fair value or countermeasures, 
and to the Commission concerning material injury by reason of the sale 
of a vessel at less than fair value.
  ``(g) Publication of Determinations; Requirements for Final 
Determinations.--
          ``(1) In general.--Whenever the administering authority makes 
        a determination under section 802 whether to initiate an 
        investigation, or the administering authority or the Commission 
        makes a preliminary determination under section 803, a final 
        determination under section 805, a determination under 
        subsection (b), (c), (d), (e)(3)(B)(ii), (g), or (i) of section 
        807, or a determination to suspend an investigation under this 
        title, the administering authority or the Commission, as the 
        case may be, shall publish the facts and conclusions supporting 
        that determination, and shall publish notice of that 
        determination in the Federal Register.
          ``(2) Contents of notice or determination.--The notice or 
        determination published under paragraph (1) shall include, to 
        the extent applicable--
                  ``(A) in the case of a determination of the 
                administering authority--
                          ``(i) the names of the foreign producer and 
                        the country of origin of the subject vessel,
                          ``(ii) a description sufficient to identify 
                        the subject vessel,
                          ``(iii) with respect to an injurious pricing 
                        charge, the injurious pricing margin 
                        established and a full explanation of the 
                        methodology used in establishing such margin,
                          ``(iv) with respect to countermeasures, the 
                        scope and duration of countermeasures and, if 
                        applicable, any changes thereto, and
                          ``(v) the primary reasons for the 
                        determination, and
                  ``(B) in the case of a determination of the 
                Commission--
                          ``(i) considerations relevant to the 
                        determination of injury, and
                          ``(ii) the primary reasons for the 
                        determination.
          ``(3) Additional requirements for final determinations.--In 
        addition to the requirements set forth in paragraph (2)--
                  ``(A) the administering authority shall include in a 
                final determination under section 805 or 807(c) an 
                explanation of the basis for its determination that 
                addresses relevant arguments, made by interested 
                parties who are parties to the investigation, 
                concerning the establishment of the injurious pricing 
                charge with respect to which the determination is made, 
                and
                  ``(B) the Commission shall include in a final 
                determination of injury an explanation of the basis for 
                its determination that addresses relevant arguments 
                that are made by interested parties who are parties to 
                the investigation concerning the effects and impact on 
                the industry of the sale of the subject vessel.

``SEC. 844. CONDUCT OF INVESTIGATIONS.

  ``(a) Certification of Submissions.--Any person providing factual 
information to the administering authority or the Commission in 
connection with a proceeding under this title on behalf of the 
petitioner or any other interested party shall certify that such 
information is accurate and complete to the best of that person's 
knowledge.
  ``(b) Difficulties in Meeting Requirements.--
          ``(1) Notification by interested party.--If an interested 
        party, promptly after receiving a request from the 
        administering authority or the Commission for information, 
        notifies the administering authority or the Commission (as the 
        case may be) that such party is unable to submit the 
        information requested in the requested form and manner, 
        together with a full explanation and suggested alternative 
        forms in which such party is able to submit the information, 
        the administering authority or the Commission (as the case may 
        be) shall consider the ability of the interested party to 
        submit the information in the requested form and manner and may 
        modify such requirements to the extent necessary to avoid 
        imposing an unreasonable burden on that party.
          ``(2) Assistance to interested parties.--The administering 
        authority and the Commission shall take into account any 
        difficulties experienced by interested parties, particularly 
        small companies, in supplying information requested by the 
        administering authority or the Commission in connection with 
        investigations under this title, and shall provide to such 
        interested parties any assistance that is practicable in 
        supplying such information.
  ``(c) Deficient Submissions.--If the administering authority or the 
Commission determines that a response to a request for information 
under this title does not comply with the request, the administering 
authority or the Commission (as the case may be) shall promptly inform 
the person submitting the response of the nature of the deficiency and 
shall, to the extent practicable, provide that person with an 
opportunity to remedy or explain the deficiency in light of the time 
limits established for the completion of investigations or reviews 
under this title. If that person submits further information in 
response to such deficiency and either--
          ``(1) the administering authority or the Commission (as the 
        case may be) finds that such response is not satisfactory, or
          ``(2) such response is not submitted within the applicable 
        time limits,
then the administering authority or the Commission (as the case may be) 
may, subject to subsection (d), disregard all or part of the original 
and subsequent responses.
  ``(d) Use of Certain Information.--In reaching a determination under 
section 803, 805, or 807, the administering authority and the 
Commission shall not decline to consider information that is submitted 
by an interested party and is necessary to the determination but does 
not meet all the applicable requirements established by the 
administering authority or the Commission if--
          ``(1) the information is submitted by the deadline 
        established for its submission,
          ``(2) the information can be verified,
          ``(3) the information is not so incomplete that it cannot 
        serve as a reliable basis for reaching the applicable 
        determination,
          ``(4) the interested party has demonstrated that it acted to 
        the best of its ability in providing the information and 
        meeting the requirements established by the administering 
        authority or the Commission with respect to the information, 
        and
          ``(5) the information can be used without undue difficulties.
  ``(e) Nonacceptance of Submissions.--If the administering authority 
or the Commission declines to accept into the record any information 
submitted in an investigation under this title, it shall, to the extent 
practicable, provide to the person submitting the information a written 
explanation of the reasons for not accepting the information.
  ``(f) Public Comment on Information.--Information that is submitted 
on a timely basis to the administering authority or the Commission 
during the course of a proceeding under this title shall be subject to 
comment by other parties within such reasonable time as the 
administering authority or the Commission shall provide. The 
administering authority and the Commission, before making a final 
determination under section 805 or 807, shall cease collecting 
information and shall provide the parties with a final opportunity to 
comment on the information obtained by the administering authority or 
the Commission (as the case may be) upon which the parties have not 
previously had an opportunity to comment. Comments containing new 
factual information shall be disregarded.
  ``(g) Verification.--The administering authority shall verify all 
information relied upon in making a final determination under section 
805.

``SEC. 845. ADMINISTRATIVE ACTION FOLLOWING SHIPBUILDING AGREEMENT 
                    PANEL REPORTS.

  ``(a) Action by United States International Trade Commission.--
           ``(1) Advisory report.--If a dispute settlement panel under 
        the Shipbuilding Agreement finds in a report that an action by 
        the Commission in connection with a particular proceeding under 
        this title is not in conformity with the obligations of the 
        United States under the Shipbuilding Agreement, the Trade 
        Representative may request the Commission to issue an advisory 
        report on whether this title permits the Commission to take 
        steps in connection with the particular proceeding that would 
        render its action not inconsistent with the findings of the 
        panel concerning those obligations. The Trade Representative 
        shall notify the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate of 
        such request.
          ``(2) Time limits for report.--The Commission shall transmit 
        its report under paragraph (1) to the Trade Representative 
        within 30 calendar days after the Trade Representative requests 
        the report.
          ``(3) Consultations on request for commission 
        determination.--If a majority of the Commissioners issues an 
        affirmative report under paragraph (1), the Trade 
        Representatives shall consult with the congressional committees 
        listed in paragraph (1) concerning the matter.
          ``(4) Commission determination.--Notwithstanding any other 
        provision of this title, if a majority of the Commissioners 
        issues an affirmative report under paragraph (1), the 
        Commission, upon the written request of the Trade 
        Representative, shall issue a determination in connection with 
        the particular proceeding that would render the Commission's 
        action described in paragraph (1) not inconsistent with the 
        findings of the panel. The Commission shall issue its 
        determination not later than 120 calendar days after the 
        request from the Trade Representative is made.
          ``(5) Consultations on implementation of commission 
        determination.--The Trade Representative shall consult with the 
        congressional committees listed in paragraph (1) before the 
        Commission's determination under paragraph (4) is implemented.
          ``(6) Revocation of order.--If, by virtue of the Commission's 
        determination under paragraph (4), an injurious pricing order 
        is no longer supported by an affirmative Commission 
        determination under this title, the Trade Representative may, 
        after consulting with the congressional committees under 
        paragraph (5), direct the administering authority to revoke the 
        injurious pricing order.
  ``(b) Action by Administering Authority.--
          ``(1) Consultations with administering authority and 
        congressional committees.--Promptly after a report or other 
        determination by a dispute settlement panel under the 
        Shipbuilding Agreement is issued that contains findings that--
                  ``(A) an action by the administering authority in a 
                proceeding under this title is not in conformity with 
                the obligations of the United States under the 
                Shipbuilding Agreement,
                  ``(B) the due date for payment of an injurious 
                pricing charge contained in an order issued under 
                section 806 should be amended,
                  ``(C) countermeasures provided for in an order issued 
                under section 807 should be provisionally suspended or 
                reduced pending the final decision of the panel, or
                  ``(D) the scope or duration of countermeasures 
                imposed under section 807 should be narrowed or 
                shortened,
        the Trade Representative shall consult with the administering 
        authority and the congressional committees listed in subsection 
        (a)(1) on the matter.
          ``(2) Determination by administering authority.--
        Notwithstanding any other provision of this title, the 
        administering authority shall, in response to a written request 
        from the Trade Representative, issue a determination, or an 
        amendment to or suspension of an injurious pricing or 
        countermeasure order, as the case may be, in connection with 
        the particular proceeding that would render the administering 
        authority's action described in paragraph (1) not inconsistent 
        with the findings of the panel.
          ``(3) Time limits for determinations.--The administering 
        authority shall issue its determination, amendment, or 
        suspension under paragraph (2)--
                  ``(A) with respect to a matter described in 
                subparagraph (A) of paragraph (1), within 180 calendar 
                days after the request from the Trade Representative is 
                made, and
                  ``(B) with respect to a matter described in 
                subparagraph (B), (C), or (D) of paragraph (1), within 
                15 calendar days after the request from the Trade 
                Representative is made.
          ``(4) Consultations before implementation.--Before the 
        administering authority implements any determination, 
        amendment, or suspension under paragraph (2), the Trade 
        Representative shall consult with the administering authority 
        and the congressional committees listed in subsection (a)(1) 
        with respect to such determination, amendment, or suspension.
          ``(5) Implementation of determination.--The Trade 
        Representative may, after consulting with the administering 
        authority and the congressional committees under paragraph (4), 
        direct the administering authority to implement, in whole or in 
        part, the determination, amendment, or suspension made under 
        paragraph (2).
          ``(6) Implementation of determination; notice of 
        implementation.--The administering authority shall implement 
        the determination, amendment, or suspension under paragraph 
        (2)--
                  ``(A) with respect to a matter described in 
                subparagraph (A) of paragraph (1), only if the 
                injurious pricing margin determined under paragraph (2) 
                differs from the injurious pricing margin in the 
                determination reviewed by the panel, and
                  ``(B) with respect to a matter described in 
                subparagraph (B), (C), or (D) of paragraph (1), upon 
                issuance of the determination, amendment, or suspension 
                under paragraph (2).
        The administering authority shall publish notice of such 
        implementation in the Federal Register.
  ``(c) Opportunity for Comment by Interested Parties.--Before issuing 
a determination, amendment, or suspension, the administering authority, 
in a matter described in subsection (b)(1)(A), or the Commission, in a 
matter described in subsection (a)(1), as the case may be, shall 
provide interested parties with an opportunity to submit written 
comments and, in appropriate cases, may hold a hearing, with respect to 
the determination.

                       ``Subtitle D--Definitions

``SEC. 861. DEFINITIONS.

  ``For purposes of this title:
          ``(1) Administering authority.--The term `administering 
        authority' means the Secretary of Commerce, or any other 
        officer of the United States to whom the responsibility for 
        carrying out the duties of the administering authority under 
        this title are transferred by law.
          ``(2) Commission.--The term `Commission' means the United 
        States International Trade Commission.
          ``(3) Country.--The term `country' means a foreign country, a 
        political subdivision, dependent territory, or possession of a 
        foreign country and, except as provided in paragraph 
        (16)(E)(iii), may not include an association of 2 or more 
        foreign countries, political subdivisions, dependent 
        territories, or possessions of countries into a customs union 
        outside the United States.
          ``(4) Industry.--
                  ``(A) In general.--Except as used in section 808, the 
                term `industry' means the producers as a whole of a 
                domestic like vessel, or those producers whose 
                collective capability to produce a domestic like vessel 
                constitutes a major proportion of the total domestic 
                capability to produce a domestic like vessel.
                  ``(B) Producer.--A `producer' of a domestic like 
                vessel includes an entity that is producing the 
                domestic like vessel and an entity with the capability 
                to produce the domestic like vessel.
                  ``(C) Capability to produce a domestic like vessel.--
                A producer has the `capability to produce a domestic 
                like vessel' if it is capable of producing a domestic 
                like vessel with its present facilities or could adapt 
                its facilities in a timely manner to produce a domestic 
                like vessel.
                  ``(D) Related parties.--(i) In an investigation under 
                this title, if a producer of a domestic like vessel and 
                the foreign producer, seller (other than the foreign 
                producer), or United States buyer of the subject vessel 
                are related parties, or if a producer of a domestic 
                like vessel is also a United States buyer of the 
                subject vessel, the domestic producer may, in 
                appropriate circumstances, be excluded from the 
                industry.
                  ``(ii) For purposes of clause (i), a domestic 
                producer and the foreign producer, seller, or United 
                States buyer shall be considered to be related parties, 
                if--
                          ``(I) the domestic producer directly or 
                        indirectly controls the foreign producer, 
                        seller or United States buyer,
                          ``(II) the foreign producer, seller, or 
                        United States buyer directly or indirectly 
                        controls the domestic producer,
                          ``(III) a third party directly or indirectly 
                        controls the domestic producer and the foreign 
                        producer, seller, or United States buyer, or
                          ``(IV) the domestic producer and the foreign 
                        producer, seller, or United States buyer 
                        directly or indirectly control a third party 
                        and there is reason to believe that the 
                        relationship causes the producer to act 
                        differently than a nonrelated producer.
                For purposes of this subparagraph, a party shall be 
                considered to directly or indirectly control another 
                party if the party is legally or operationally in a 
                position to exercise restraint or direction over the 
                other party.
                  ``(E) Product lines.--In an investigation under this 
                title, the effect of the sale of the subject vessel 
                shall be assessed in relation to the United States 
                production (or production capability) of a domestic 
                like vessel if available data permit the separate 
                identification of production (or production capability) 
                in terms of such criteria as the production process or 
                the producer's profits. If the domestic production (or 
                production capability) of a domestic like vessel has no 
                separate identity in terms of such criteria, then the 
                effect of the sale shall be assessed by the examination 
                of the production (or production capability) of the 
                narrowest group or range of vessels, which includes a 
                domestic like vessel, for which the necessary 
                information can be provided.
          ``(5) Buyer.--The term `buyer' means any person who acquires 
        an ownership interest in a vessel, including by way of lease or 
        long-term bareboat charter, in conjunction with the original 
        transfer from the producer, either directly or indirectly, 
        including an individual or company which owns or controls a 
        buyer. There may be more than one buyer of any one vessel.
          ``(6) United states buyer.--The term `United States buyer' 
        means a buyer that is any of the following:
                  ``(A) A United States citizen.
                  ``(B) A juridical entity, including any corporation, 
                company, association, or other organization, that is 
                legally constituted under the laws and regulations of 
                the United States or a political subdivision thereof, 
                regardless of whether the entity is organized for 
                pecuniary gain, privately or government owned, or 
                organized with limited or unlimited liability.
                  ``(C) A juridical entity that is owned or controlled 
                by nationals or entities described in subparagraphs (A) 
                and (B). For the purposes of this subparagraph--
                          ``(i) the term `own' means having more than a 
                        50 percent interest, and
                          ``(ii) the term `control' means the actual 
                        ability to have substantial influence on 
                        corporate behavior, and control is presumed to 
                        exist where there is at least a 25 percent 
                        interest.
                If ownership of a company is established under clause 
                (i), other control is presumed not to exist unless it 
                is otherwise established.
          ``(7) Ownership interest.--An `ownership interest' in a 
        vessel includes any contractual or proprietary interest which 
        allows the beneficiary or beneficiaries of such interest to 
        take advantage of the operation of the vessel in a manner 
        substantially comparable to the way in which an owner may 
        benefit from the operation of the vessel. In determining 
        whether such substantial comparability exists, the 
        administering authority shall consider--
                  ``(A) the terms and circumstances of the transaction 
                which conveys the interest,
                  ``(B) commercial practice,
                  ``(C) whether the vessel subject to the transaction 
                is integrated into the operations of the beneficiary or 
                beneficiaries, and
                  ``(D) whether in practice there is a likelihood that 
                the beneficiary or beneficiaries of such interests will 
                take advantage of and the risk for the operation of the 
                vessel for a significant part of the life-time of the 
                vessel.
          ``(8) Vessel.--
                  ``(A) In general.--Except as otherwise specifically 
                provided under international agreements, the term 
                `vessel' means--
                          ``(i) a self-propelled seagoing vessel of 100 
                        gross tons or more used for transportation of 
                        goods or persons or for performance of a 
                        specialized service (including, but not limited 
                        to, ice breakers and dredgers), and
                          ``(ii) a tug of 365 kilowatts or more,
                that is produced in a Shipbuilding Agreement Party or a 
                country that is not a Shipbuilding Agreement Party and 
                not a WTO member.
                  ``(B) Exclusions.--The term `vessel' does not 
                include--
                          ``(i) any fishing vessel destined for the 
                        fishing fleet of the country in which the 
                        vessel is built,
                          ``(ii) any military vessel, and
                          ``(iii) any vessel sold before the date that 
                        the Shipbuilding Agreement enters into force 
                        with respect to the United States, except that 
                        any vessel sold after December 21, 1994, for 
                        delivery more than 5 years after the date of 
                        the contract of sale shall be a `vessel' for 
                        purposes of this title unless the shipbuilder 
                        demonstrates to the administering authority 
                        that the extended delivery date was for normal 
                        commercial reasons and not to avoid 
                        applicability of this title.
                  ``(C) Self-propelled seagoing vessel.--A vessel is 
                `self-propelled seagoing' if its permanent propulsion 
                and steering provide it all the characteristics of 
                self-navigability in the high seas.
                  ``(D) Military vessel.--A `military vessel' is a 
                vessel which, according to its basic structural 
                characteristics and ability, is intended to be used 
                exclusively for military purposes.
          ``(9) Like vessel.--The term `like vessel' means a vessel of 
        the same type, same purpose, and approximate size as the 
        subject vessel and possessing characteristics closely 
        resembling those of the subject vessel.
          ``(10) Domestic like vessel.--The term `domestic like vessel' 
        means a like vessel produced in the United States.
          ``(11) Foreign like vessel.--Except as used in section 
        822(e)(1)(B)(ii)(II), the term `foreign like vessel' means a 
        like vessel produced by the foreign producer of the subject 
        vessel for sale in the producer's domestic market or in a third 
        country.
          ``(12) Same general category of vessel.--The term `same 
        general category of vessel' means a vessel of the same type and 
        purpose as the subject vessel, but of a significantly different 
        size.
          ``(13) Subject vessel.--The term `subject vessel' means a 
        vessel subject to investigation under section 801 or 808.
          ``(14) Foreign producer.--The term `foreign producer' means 
        the producer or producers of the subject vessel.
          ``(15) Exporting country.--The term `exporting country' means 
        the country in which the subject vessel was built.
          ``(16) Material injury.--
                  ``(A) In general.--The term `material injury' means 
                harm which is not inconsequential, immaterial, or 
                unimportant.
                  ``(B) Sale and consequent impact.--In making 
                determinations under sections 803(a) and 805(b), the 
                Commission in each case--
                          ``(i) shall consider--
                                  ``(I) the sale of the subject vessel,
                                  ``(II) the effect of the sale of the 
                                subject vessel on prices in the United 
                                States for a domestic like vessel, and
                                  ``(III) the impact of the sale of the 
                                subject vessel on domestic producers of 
                                the domestic like vessel, but only in 
                                the context of production operations 
                                within the United States, and
                          ``(ii) may consider such other economic 
                        factors as are relevant to the determination 
                        regarding whether there is or has been material 
                        injury by reason of the sale of the subject 
                        vessel.
                In the notification required under section 805(d), the 
                Commission shall explain its analysis of each factor 
                considered under clause (i), and identify each factor 
                considered under clause (ii) and explain in full its 
                relevance to the determination.
                  ``(C) Evaluation of relevant factors.--For purposes 
                of subparagraph (B)--
                          ``(i) Sale of the subject vessel.--In 
                        evaluating the sale of the subject vessel, the 
                        Commission shall consider whether the sale, 
                        either in absolute terms or relative to 
                        production or demand in the United States, in 
                        terms of either volume or value, is or has been 
                        significant.
                          ``(ii) Price.--In evaluating the effect of 
                        the sale of the subject vessel on prices, the 
                        Commission shall consider whether--
                                  ``(I) there has been significant 
                                price underselling of the subject 
                                vessel as compared with the price of a 
                                domestic like vessel, and
                                  ``(II) the effect of the sale of the 
                                subject vessel otherwise depresses or 
                                has depressed prices to a significant 
                                degree or prevents or has prevented 
                                price increases, which otherwise would 
                                have occurred, to a significant degree.
                          ``(iii) Impact on affected domestic 
                        industry.--In examining the impact required to 
                        be considered under subparagraph (B)(i)(III), 
                        the Commission shall evaluate all relevant 
                        economic factors which have a bearing on the 
                        state of the industry in the United States, 
                        including, but not limited to--
                                  ``(I) actual and potential decline in 
                                output, sales, market share, profits, 
                                productivity, return on investments, 
                                and utilization of capacity,
                                  ``(II) factors affecting domestic 
                                prices, including with regard to sales,
                                  ``(III) actual and potential negative 
                                effects on cash flow, employment, 
                                wages, growth, ability to raise 
                                capital, and investment,
                                  ``(IV) actual and potential negative 
                                effects on the existing development and 
                                production efforts of the domestic 
                                industry, including efforts to develop 
                                a derivative or more advanced version 
                                of a domestic like vessel, and
                                  ``(V) the magnitude of the injurious 
                                pricing margin.
                        The Commission shall evaluate all relevant 
                        economic factors described in this clause 
                        within the context of the business cycle and 
                        conditions of competition that are distinctive 
                        to the affected industry.
                  ``(D) Standard for determination.--The presence or 
                absence of any factor which the Commission is required 
                to evaluate under subparagraph (C) shall not 
                necessarily give decisive guidance with respect to the 
                determination by the Commission of material injury.
                  ``(E) Threat of material injury.--
                          ``(i) In general.--In determining whether an 
                        industry in the United States is threatened 
                        with material injury by reason of the sale of 
                        the subject vessel, the Commission shall 
                        consider, among other relevant economic 
                        factors--
                                  ``(I) any existing unused production 
                                capacity or imminent, substantial 
                                increase in production capacity in the 
                                exporting country indicating the 
                                likelihood of substantially increased 
                                sales of a foreign like vessel to 
                                United States buyers, taking into 
                                account the availability of other 
                                export markets to absorb any additional 
                                exports,
                                  ``(II) whether the sale of a foreign 
                                like vessel or other factors indicate 
                                the likelihood of significant 
                                additional sales to United States 
                                buyers,
                                  ``(III) whether sale of the subject 
                                vessel or sale of a foreign like vessel 
                                by the foreign producer are at prices 
                                that are likely to have a significant 
                                depressing or suppressing effect on 
                                domestic prices, and are likely to 
                                increase demand for further sales,
                                  ``(IV) the potential for product-
                                shifting if production facilities in 
                                the exporting country, which can 
                                presently be used to produce a foreign 
                                like vessel or could be adapted in a 
                                timely manner to produce a foreign like 
                                vessel, are currently being used to 
                                produce other types of vessels,
                                  ``(V) the actual and potential 
                                negative effects on the existing 
                                development and production efforts of 
                                the domestic industry, including 
                                efforts to develop a derivative or more 
                                advanced version of a domestic like 
                                vessel, and
                                  ``(VI) any other demonstrable adverse 
                                trends that indicate the probability 
                                that there is likely to be material 
                                injury by reason of the sale of the 
                                subject vessel.
                          ``(ii) Basis for determination.--The 
                        Commission shall consider the factors set forth 
                        in clause (i) as a whole. The presence or 
                        absence of any factor which the Commission is 
                        required to consider under clause (i) shall not 
                        necessarily give decisive guidance with respect 
                        to the determination. Such a determination may 
                        not be made on the basis of mere conjecture or 
                        supposition.
                          ``(iii) Effect of injurious pricing in third-
                        country markets.--
                                  ``(I) In general.--The Commission 
                                shall consider whether injurious 
                                pricing in the markets of foreign 
                                countries (as evidenced by injurious 
                                pricing findings or injurious pricing 
                                remedies of other Shipbuilding 
                                Agreement Parties, or antidumping 
                                determinations of, or measures imposed 
                                by, other countries, against a like 
                                vessel produced by the producer under 
                                investigation) suggests a threat of 
                                material injury to the domestic 
                                industry. In the course of its 
                                investigation, the Commission shall 
                                request information from the foreign 
                                producer or United States buyer 
                                concerning this issue.
                                  ``(II) European communities.--For 
                                purposes of this clause, the European 
                                Communities as a whole shall be treated 
                                as a single foreign country.
                  ``(F) Cumulation for determining material injury.--
                          ``(i) In general.--For purposes of clauses 
                        (i) and (ii) of subparagraph (C), and subject 
                        to clause (ii) of this subparagraph, the 
                        Commission shall cumulatively assess the 
                        effects of sales of foreign like vessels from 
                        all foreign producers with respect to which--
                                  ``(I) petitions were filed under 
                                section 802(b) on the same day,
                                  ``(II) investigations were initiated 
                                under section 802(a) on the same day, 
                                or
                                  ``(III) petitions were filed under 
                                section 802(b) and investigations were 
                                initiated under section 802(a) on the 
                                same day,
                        if, with respect to such vessels, the foreign 
                        producers compete with each other and with 
                        producers of a domestic like vessel in the 
                        United States market.
                          ``(ii) Exceptions.--The Commission shall not 
                        cumulatively assess the effects of sales under 
                        clause (i)--
                                  ``(I) with respect to which the 
                                administering authority has made a 
                                preliminary negative determination, 
                                unless the administering authority 
                                subsequently made a final affirmative 
                                determination with respect to those 
                                sales before the Commission's final 
                                determination is made, or
                                  ``(II) from any producer with respect 
                                to which the investigation has been 
                                terminated.
                          ``(iii) Records in final investigations.--In 
                        each final determination in which it 
                        cumulatively assesses the effects of sales 
                        under clause (i), the Commission may make its 
                        determinations based on the record compiled in 
                        the first investigation in which it makes a 
                        final determination, except that when the 
                        administering authority issues its final 
                        determination in a subsequently completed 
                        investigation, the Commission shall permit the 
                        parties in the subsequent investigation to 
                        submit comments concerning the significance of 
                        the administering authority's final 
                        determination, and shall include such comments 
                        and the administering authority's final 
                        determination in the record for the subsequent 
                        investigation.
                  ``(G) Cumulation for determining threat of material 
                injury.--To the extent practicable and subject to 
                subparagraph (F)(ii), for purposes of clause (i) (II) 
                and (III) of subparagraph (E), the Commission may 
                cumulatively assess the effects of sales of like 
                vessels from all countries with respect to which--
                          ``(i) petitions were filed under section 
                        802(b) on the same day,
                          ``(ii) investigations were initiated under 
                        section 802(a) on the same day, or
                          ``(iii) petitions were filed under section 
                        802(b) and investigations were initiated under 
                        section 802(a) on the same day,
                if, with respect to such vessels, the foreign producers 
                compete with each other and with producers of a 
                domestic like vessel in the United States market.
          ``(17) Interested party.--The term `interested party' means, 
        in a proceeding under this title--
                  ``(A)(i) the foreign producer, seller (other than the 
                foreign producer), and the United States buyer of the 
                subject vessel, or
                  ``(ii) a trade or business association a majority of 
                the members of which are the foreign producer, seller, 
                or United States buyer of the subject vessel,
                  ``(B) the government of the country in which the 
                subject vessel is produced or manufactured,
                  ``(C) a producer that is a member of an industry,
                  ``(D) a certified union or recognized union or group 
                of workers which is representative of an industry,
                  ``(E) a trade or business association a majority of 
                whose members are producers in an industry,
                  ``(F) an association, a majority of whose members is 
                composed of interested parties described in 
                subparagraph (C), (D), or (E), and
                  ``(G) for purposes of section 807, a purchaser who, 
                after the effective date of an order issued under that 
                section, entered into a contract of sale with the 
                foreign producer that is subject to the order.
          ``(18) Affirmative determinations by divided commission.--If 
        the Commissioners voting on a determination by the Commission 
        are evenly divided as to whether the determination should be 
        affirmative or negative, the Commission shall be deemed to have 
        made an affirmative determination. For the purpose of applying 
        this paragraph when the issue before the Commission is to 
        determine whether there is or has been--
                  ``(A) material injury to an industry in the United 
                States,
                  ``(B) threat of material injury to such an industry, 
                or
                  ``(C) material retardation of the establishment of an 
                industry in the United States,
        by reason of the sale of the subject vessel, an affirmative 
        vote on any of the issues shall be treated as a vote that the 
        determination should be affirmative.
          ``(19) Ordinary course of trade.--The term `ordinary course 
        of trade' means the conditions and practices which, for a 
        reasonable time before the sale of the subject vessel, have 
        been normal in the shipbuilding industry with respect to a like 
        vessel. The administering authority shall consider the 
        following sales and transactions, among others, to be outside 
        the ordinary course of trade:
                  ``(A) Sales disregarded under section 822(b)(1).
                  ``(B) Transactions disregarded under section 
                822(f)(2).
          ``(20) Nonmarket economy country.--
                  ``(A) In general.--The term `nonmarket economy 
                country' means any foreign country that the 
                administering authority determines does not operate on 
                market principles of cost or pricing structures, so 
                that sales of vessels in such country do not reflect 
                the fair value of the vessels.
                  ``(B) Factors to be considered.--In making 
                determinations under subparagraph (A) the administering 
                authority shall take into account--
                          ``(i) the extent to which the currency of the 
                        foreign country is convertible into the 
                        currency of other countries,
                          ``(ii) the extent to which wage rates in the 
                        foreign country are determined by free 
                        bargaining between labor and management,
                          ``(iii) the extent to which joint ventures or 
                        other investments by firms of other foreign 
                        countries are permitted in the foreign country,
                          ``(iv) the extent of government ownership or 
                        control of the means of production,
                          ``(v) the extent of government control over 
                        the allocation of resources and over the price 
                        and output decisions of enterprises, and
                          ``(vi) such other factors as the 
                        administering authority considers appropriate.
                  ``(C) Determination in effect.--
                          ``(i) Any determination that a foreign 
                        country is a nonmarket economy country shall 
                        remain in effect until revoked by the 
                        administering authority.
                          ``(ii) The administering authority may make a 
                        determination under subparagraph (A) with 
                        respect to any foreign country at any time.
                  ``(D) Determinations not in issue.--Notwithstanding 
                any other provision of law, any determination made by 
                the administering authority under subparagraph (A) 
                shall not be subject to judicial review in any 
                investigation conducted under subtitle A.
          ``(21) Shipbuilding agreement.--The term `Shipbuilding 
        Agreement' means The Agreement Respecting Normal Competitive 
        Conditions in the Commercial Shipbuilding and Repair Industry, 
        resulting from negotiations under the auspices of the 
        Organization for Economic Cooperation and Development, and 
        entered into on December 21, 1994.
          ``(22) Shipbuilding agreement party.--The term `Shipbuilding 
        Agreement Party' means a state or separate customs territory 
        that is a Party to the Shipbuilding Agreement, and with respect 
        to which the United States applies the Shipbuilding Agreement.
          ``(23) WTO agreement.--The term `WTO Agreement' means the 
        Agreement defined in section 2(9) of the Uruguay Round 
        Agreements Act.
          ``(24) WTO member.--The term `WTO member' means a state, or 
        separate customs territory (within the meaning of Article XII 
        of the WTO Agreement), with respect to which the United States 
        applies the WTO Agreement.
          ``(25) Trade representative.--The term `Trade Representative' 
        means the United States Trade Representative.
          ``(26) Affiliated persons.--The following persons shall be 
        considered to be `affiliated' or `affiliated persons':
                  ``(A) Members of a family, including brothers and 
                sisters (whether by the whole or half blood), spouse, 
                ancestors, and lineal descendants.
                  ``(B) Any officer or director of an organization and 
                such organization.
                  ``(C) Partners.
                  ``(D) Employer and employee.
                  ``(E) Any person directly or indirectly owning, 
                controlling, or holding with power to vote, 5 percent 
                or more of the outstanding voting stock or shares of 
                any organization, and such organization.
                  ``(F) Two or more persons directly or indirectly 
                controlling, controlled by, or under common control 
                with, any person.
                  ``(G) Any person who controls any other person, and 
                such other person.
        For purposes of this paragraph, a person shall be considered to 
        control another person if the person is legally or 
        operationally in a position to exercise restraint or direction 
        over the other person.
          ``(27) Injurious pricing.--The term `injurious pricing' 
        refers to the sale of a vessel at less than fair value.
          ``(28) Injurious pricing margin.--
                  ``(A) In general.--The term `injurious pricing 
                margin' means the amount by which the normal value 
                exceeds the export price of the subject vessel.
                  ``(B) Magnitude of the injurious pricing margin.--The 
                magnitude of the injurious pricing margin used by the 
                Commission shall be--
                          ``(i) in making a preliminary determination 
                        under section 803(a) in an investigation 
                        (including any investigation in which the 
                        Commission cumulatively assesses the effect of 
                        sales under paragraph (16)(F)(i)), the 
                        injurious pricing margin or margins published 
                        by the administering authority in its notice of 
                        initiation of the investigation; and
                          ``(ii) in making a final determination under 
                        section 805(b), the injurious pricing margin or 
                        margins most recently published by the 
                        administering authority before the closing of 
                        the Commission's administrative record.
          ``(29) Commercial interest reference rate.--The term 
        `Commercial Interest Reference Rate' or `CIRR' means an 
        interest rate that the administering authority determines to be 
        consistent with Annex III, and appendices and notes thereto, of 
        the Understanding on Export Credits for Ships, resulting from 
        negotiations under the auspices of the Organization for 
        Economic Cooperation, and entered into on December 21, 1994.
          ``(30) Antidumping.--
                  ``(A) WTO members.--In the case of a WTO member, the 
                term `antidumping' refers to action taken pursuant to 
                the Agreement on Implementation of Article VI of the 
                General Agreement on Tariffs and Trade 1994.
                  ``(B) Other cases.--In the case of any country that 
                is not a WTO member, the term `antidumping' refers to 
                action taken by the country against the sale of a 
                vessel at less than fair value that is comparable to 
                action described in subparagraph (A).
          ``(31) Broad multiple bid.--The term `broad multiple bid' 
        means a bid in which the proposed buyer extends an invitation 
        to at least all the producers in the industry known by the 
        buyer to be capable of building the subject vessel.''.

SEC. 102. ENFORCEMENT OF COUNTERMEASURES.

  Part II of title IV of the Tariff Act of 1930 is amended by adding at 
the end the following:

``SEC. 468. SHIPBUILDING AGREEMENT COUNTERMEASURES.

  ``(a) In General.--Notwithstanding any other provision of law, upon 
receiving from the Secretary of Commerce a list of vessels subject to 
countermeasures under section 807, the Customs Service shall deny any 
request for a permit to lade or unlade passengers, merchandise, or 
baggage from or onto those vessels so listed.
  ``(b) Exceptions.--Subsection (a) shall not be applied to deny a 
permit for the following:
          ``(1) To unlade any United States citizen or permanent legal 
        resident alien from a vessel included in the list described in 
        subsection (a), or to unlade any refugee or any alien who would 
        otherwise be eligible to apply for asylum and withholding of 
        deportation under the Immigration and Nationality Act.
          ``(2) To lade or unlade any crewmember of such vessel.
          ``(3) To lade or unlade coal and other fuel supplies (for the 
        operation of the listed vessel), ships' stores, sea stores, and 
        the legitimate equipment of such vessel.
          ``(4) To lade or unlade supplies for the use or sale on such 
        vessel.
          ``(5) To lade or unlade such other merchandise, baggage, or 
        passenger as the Customs Service shall determine necessary to 
        protect the immediate health, safety, or welfare of a human 
        being.
  ``(c) Correction of Ministerial or Clerical Errors.--
          ``(1) Petition for correction.--If the master of any vessel 
        whose application for a permit to lade or unlade has been 
        denied under this section believes that such denial resulted 
        from a ministerial or clerical error, not amounting to a 
        mistake of law, committed by any Customs officer, the master 
        may petition the Customs Service for correction of such error, 
        as provided by regulation.
          ``(2) Inapplicability of sections 514 and 520.--
        Notwithstanding paragraph (1), imposition of countermeasures 
        under this section shall not be deemed an exclusion or other 
        protestable decision under section 514, and shall not be 
        subject to correction under section 520.
          ``(3) Petitions seeking administrative review.--Any petition 
        seeking administrative review of any matter regarding the 
        Secretary of Commerce's decision to list a vessel under section 
        807 must be brought under that section.
  ``(d) Penalties.--In addition to any other provision of law, the 
Customs Service may impose a civil penalty of not to exceed $10,000 
against the master of any vessel--
          ``(1) who submits false information in requesting any permit 
        to lade or unlade; or
          ``(2) who attempts to, or actually does, lade or unlade in 
        violation of any denial of such permit under this section.''.

SEC. 103. JUDICIAL REVIEW IN INJURIOUS PRICING AND COUNTERMEASURE 
                    PROCEEDINGS.

  (a) Judicial Review.--Part III of title IV of the Tariff Act of 1930 
is amended by inserting after section 516A the following:

``SEC. 516B. JUDICIAL REVIEW IN INJURIOUS PRICING AND COUNTERMEASURE 
                    PROCEEDINGS.

  ``(a) Review of Determination.--
          ``(1) In general.--Within 30 days after the date of 
        publication in the Federal Register of--
                  ``(A)(i) a determination by the administering 
                authority under section 802(c) not to initiate an 
                investigation,
                  ``(ii) a negative determination by the Commission 
                under section 803(a) as to whether there is or has been 
                reasonable indication of material injury, threat of 
                material injury, or material retardation,
                  ``(iii) a determination by the administering 
                authority to suspend or revoke an injurious pricing 
                order under section 806(d) or (e),
                  ``(iv) a determination by the administering authority 
                under section 807(c),
                  ``(v) a determination by the administering authority 
                in a review under section 807(d),
                  ``(vi) a determination by the administering authority 
                concerning whether to extend the scope or duration of a 
                countermeasure order under section 807(e)(3)(B)(ii),
                  ``(vii) a determination by the administering 
                authority to amend a countermeasure order under section 
                807(e)(6),
                  ``(viii) a determination by the administering 
                authority in a review under section 807(g),
                  ``(ix) a determination by the administering authority 
                under section 807(i) to terminate proceedings, or to 
                amend or revoke a countermeasure order,
                  ``(x) a determination by the administering authority 
                under section 845(b), with respect to a matter 
                described in paragraph (1)(D) of that section, or
                  ``(B)(i) an injurious pricing order based on a 
                determination described in subparagraph (A) of 
                paragraph (2),
                  ``(ii) notice of a determination described in 
                subparagraph (B) of paragraph (2),
                  ``(iii) notice of implementation of a determination 
                described in subparagraph (C) of paragraph (2), or
                  ``(iv) notice of revocation of an injurious pricing 
                order based on a determination described in 
                subparagraph (D) of paragraph (2),
        an interested party who is a party to the proceeding in 
        connection with which the matter arises may commence an action 
        in the United States Court of International Trade by filing 
        concurrently a summons and complaint, each with the content and 
        in the form, manner, and style prescribed by the rules of that 
        court, contesting any factual findings or legal conclusions 
        upon which the determination is based.
          ``(2) Reviewable determinations.--The determinations referred 
        to in paragraph (1)(B) are--
                  ``(A) a final affirmative determination by the 
                administering authority or by the Commission under 
                section 805, including any negative part of such a 
                determination (other than a part referred to in 
                subparagraph (B)),
                  ``(B) a final negative determination by the 
                administering authority or the Commission under section 
                805,
                  ``(C) a determination by the administering authority 
                under section 845(b), with respect to a matter 
                described in paragraph (1)(A) of that section, and
                  ``(D) a determination by the Commission under section 
                845(a) that results in the revocation of an injurious 
                pricing order.
          ``(3) Exception.--Notwithstanding the 30-day limitation 
        imposed by paragraph (1) with regard to an order described in 
        paragraph (1)(B)(i), a final affirmative determination by the 
        administering authority under section 805 may be contested by 
        commencing an action, in accordance with the provisions of 
        paragraph (1), within 30 days after the date of publication in 
        the Federal Register of a final negative determination by the 
        Commission under section 805.
          ``(4) Procedures and fees.--The procedures and fees set forth 
        in chapter 169 of title 28, United States Code, apply to an 
        action under this section.
  ``(b) Standards of Review.--
          ``(1) Remedy.--The court shall hold unlawful any 
        determination, finding, or conclusion found--
                  ``(A) in an action brought under subparagraph (A) of 
                subsection (a)(1), to be arbitrary, capricious, an 
                abuse of discretion, or otherwise not in accordance 
                with law, or
                  ``(B) in an action brought under subparagraph (B) of 
                subsection (a)(1), to be unsupported by substantial 
                evidence on the record, or otherwise not in accordance 
                with law.
          ``(2) Record for review.--
                  ``(A) In general.--For purposes of this subsection, 
                the record, unless otherwise stipulated by the parties, 
                shall consist of--
                          ``(i) a copy of all information presented to 
                        or obtained by the administering authority or 
                        the Commission during the course of the 
                        administrative proceeding, including all 
                        governmental memoranda pertaining to the case 
                        and the record of ex parte meetings required to 
                        be kept by section 843(a)(2); and
                          ``(ii) a copy of the determination, all 
                        transcripts or records of conferences or 
                        hearings, and all notices published in the 
                        Federal Register.
                  ``(B) Confidential or privileged material.--The 
                confidential or privileged status accorded to any 
                documents, comments, or information shall be preserved 
                in any action under this section. Notwithstanding the 
                preceding sentence, the court may examine, in camera, 
                the confidential or privileged material, and may 
                disclose such material under such terms and conditions 
                as it may order.
  ``(c) Standing.--Any interested party who was a party to the 
proceeding under title VIII shall have the right to appear and be heard 
as a party in interest before the United States Court of International 
Trade in an action under this section. The party filing the action 
shall notify all such interested parties of the filing of an action 
under this section, in the form, manner, and within the time prescribed 
by rules of the court.
  ``(d) Definitions.--For purposes of this section:
          ``(1) Administering authority.--The term `administering 
        authority' has the meaning given that term in section 861(1).
          ``(2) Commission.--The term `Commission' means the United 
        States International Trade Commission.
          ``(3) Interested party.--The term `interested party' means 
        any person described in section 861(17).''.
  (b) Conforming Amendments.--
          (1) Jurisdiction of the court.--Section 1581(c) of title 28, 
        United States Code, is amended by inserting ``or 516B'' after 
        ``section 516A''.
          (2) Relief.--Section 2643 of title 28, United States Code, is 
        amended--
                  (A) in subsection (c)(1) by striking ``and (5)'' and 
                inserting ``(5), and (6)''; and
                  (B) in subsection (c) by adding at the end the 
                following new paragraph:
  ``(6) In any civil action under section 516B of the Tariff Act of 
1930, the Court of International Trade may not issue injunctions or any 
other form of equitable relief, except with regard to implementation of 
a countermeasure order under section 468 of that Act, upon a proper 
showing that such relief is warranted.''.

                       TITLE II--OTHER PROVISIONS

SEC. 201. EQUIPMENT AND REPAIR OF VESSELS.

  Section 466 of the Tariff Act of 1930 (19 U.S.C. 1466), is amended by 
adding at the end the following new subsection:
  ``(i) The duty imposed by subsection (a) shall not apply with respect 
to activities occurring in a Shipbuilding Agreement Party, as defined 
in section 861(22), with respect to--
          ``(1) self-propelled seagoing vessels of 100 gross tons or 
        more that are used for transportation of goods or persons or 
        for performance of a specialized service (including, but not 
        limited to, ice breakers and dredges), and
          ``(2) tugs of 365 kilowatts or more.
A vessel shall be considered `self-propelled seagoing' if its permanent 
propulsion and steering provide it all the characteristics of self-
navigability in the high seas.''.

SEC. 202. EFFECT OF AGREEMENT WITH RESPECT TO PRIVATE REMEDIES.

  No person other than the United States--
          (1) shall have any cause of action or defense under the 
        Shipbuilding Agreement or by virtue of congressional approval 
        of the agreement, or
          (2) may challenge, in any action brought under any provision 
        of law, any action or inaction by any department, agency, or 
        other instrumentality of the United States, the District of 
        Columbia, any State, any political subdivision of a State, or 
        any territory or possession of the United States on the ground 
        that such action or inaction is inconsistent with such 
        agreement.

SEC. 203. IMPLEMENTING REGULATIONS.

  After the date of the enactment of this Act, the heads of agencies 
with functions under this Act and the amendments made by this Act may 
issue such regulations as may be necessary to ensure that this Act is 
appropriately implemented on the date the Shipbuilding Agreement enters 
into force with respect to the United States.

SEC. 204. AMENDMENTS TO THE MERCHANT MARINE ACT, 1936.

  The Merchant Marine Act, 1936, is amended as follows:
          (1) Section 511(a)(2) (46 App. U.S.C. 1161(a)(2)) is amended 
        by inserting after ``1939,'' the following: ``or, if the vessel 
        is a Shipbuilding Agreement vessel, constructed in a 
        Shipbuilding Agreement Party, but only with regard to moneys 
        deposited, on or after the date on which the Shipbuilding Trade 
        Agreement Act takes effect, into a construction reserve fund 
        established under subsection (b)''.
          (2) Section 601(a) (46 App. U.S.C. 1171(a)) is amended by 
        striking ``, and that such vessel or vessels were built in the 
        United States, or have been documented under the laws of the 
        United States not later than February 1, 1928, or actually 
        ordered and under construction for the account of citizens of 
        the United States prior to such date'' and inserting ``and that 
        such vessel or vessels were built in the United States, or, if 
        the vessel or vessels are Shipbuilding Agreement vessels, in a 
        Shipbuilding Agreement Party''.
          (3) Section 606(6) (46 App. U.S.C. 1176(6)) is amended by 
        inserting ``or, if the vessel is a Shipbuilding Agreement 
        vessel, in a Shipbuilding Agreement Party or in the United 
        States'' before ``, except in an emergency.''.
          (4) Section 607 (46 App. U.S.C. 1177) is amended as follows:
                  (A) Subsection (a) is amended by inserting ``or, if 
                the vessel is a Shipbuilding Agreement vessel, in a 
                Shipbuilding Agreement Party,'' after ``built in the 
                United States''.
                  (B) Subsection (k) is amended as follows:
                          (i) Paragraph (1) is amended by striking 
                        subparagraph (A) and inserting the following:
          ``(A)(i) constructed in the United States and, if 
        reconstructed, reconstructed in the United States or in a 
        Shipbuilding Agreement Party, or
          ``(ii) that is a Shipbuilding Agreement vessel and is 
        constructed in a Shipbuilding Agreement Party and, if 
        reconstructed, is reconstructed in a Shipbuilding Agreement 
        Party or in the United States,''.
                          (ii) Paragraph (2)(A) is amended to read as 
                        follows:
          ``(A)(i) constructed in the United States and, if 
        reconstructed, reconstructed in the United States or in a 
        Shipbuilding Agreement Party, or
          ``(ii) that is a Shipbuilding Agreement vessel and is 
        constructed in a Shipbuilding Agreement Party and, if 
        reconstructed, is reconstructed in a Shipbuilding Agreement 
        Party or in the United States, but only with regard to moneys 
        deposited into the fund on or after the date on which the 
        Shipbuilding Trade Agreement Act takes effect,''.
          (5) Section 610 (46 App. U.S.C. 1180) is amended by striking 
        ``shall be built in a domestic yard or shall have been 
        documented under the laws of the United States not later than 
        February 1, 1928, or actually ordered and under construction 
        for the account of citizens of the United States prior to such 
        date,'' and inserting ``shall be built in the United States or, 
        if the vessel is a Shipbuilding Agreement vessel, in a 
        Shipbuilding Agreement Party,''.
          (6) Section 901(b)(1) (46 App. U.S.C. 1241(b)(1)) is amended 
        by striking the third sentence and inserting the following:
``For purposes of this section, the term `privately owned United 
States-flag commercial vessels' shall be deemed to include--
          ``(A) any privately owned United States-flag commercial 
        vessel constructed in the United States, and if rebuilt, 
        rebuilt in the United States or in a Shipbuilding Agreement 
        Party on or after the date on which the Shipbuilding Trade 
        Agreement Act takes effect, and
          ``(B) any privately owned vessel constructed in a 
        Shipbuilding Agreement Party on or after the date on which the 
        Shipbuilding Trade Agreement Act takes effect, and if rebuilt, 
        rebuilt in a Shipbuilding Agreement Party or in the United 
        States, that is documented pursuant to chapter 121 of title 46, 
        United States Code.
The term `privately owned United States-flag commercial vessels' shall 
also be deemed to include any cargo vessel that so qualified pursuant 
to section 615 of this Act or this paragraph before the date on which 
the Shipbuilding Trade Agreement Act takes effect. The term `privately 
owned United States-flag commercial vessels' shall not be deemed to 
include any liquid bulk cargo vessel that does not meet the 
requirements of section 3703a of title 46, United States Code.''.
          (7) Section 905 (46 App. U.S.C. 1244) is amended by adding at 
        the end the following:
  ``(h) The term `Shipbuilding Agreement' means the Agreement 
Respecting Normal Competitive Conditions in the Commercial Shipbuilding 
and Repair Industry, which resulted from negotiations under the 
auspices of the Organization for Economic Cooperation and Development, 
and was entered into on December 21, 1994.
  ``(i) The term `Shipbuilding Agreement Party' means a state or 
separate customs territory that is a Party to the Shipbuilding 
Agreement, and with respect to which the United States applies the 
Shipbuilding Agreement.
  ``(j) The term `Shipbuilding Agreement vessel' means a vessel to 
which the Secretary determines Article 2.1 of the Shipbuilding 
Agreement applies.
  ``(k) The term `Export Credit Understanding' means the Understanding 
on Export Credits for Ships which resulted from negotiations under the 
auspices of the Organization for Economic Cooperation and Development 
and was entered into on December 21, 1994.
  ``(l) The term `Export Credit Understanding vessel' means a vessel to 
which the Secretary determines the Export Credit Understanding 
applies.''.
          (8) Section 1104A (46 App. U.S.C. 1274) is amended as 
        follows:
                  (A) Paragraph (5) of subsection (b) is amended to 
                read as follows:
          ``(5) shall bear interest (exclusive of charges for the 
        guarantee and service charges, if any) at rates not to exceed 
        such percent per annum on the unpaid principal as the Secretary 
        determines to be reasonable, taking into account the range of 
        interest rates prevailing in the private market for similar 
        loans and the risks assumed by the Secretary, except that, with 
        respect to Export Credit Understanding vessels, and 
        Shipbuilding Agreement vessels, the obligations shall bear 
        interest at a rate the Secretary determines to be consistent 
        with obligations of the United States under the Export Credit 
        Understanding or the Shipbuilding Agreement, as the case may 
        be;''.
                  (B) Subsection (i) is amended to read as follows:
  ``(i)(1) Except as provided in paragraph (2), the Secretary may not, 
with respect to--
          ``(A) the general 75 percent or less limitation contained in 
        subsection (b)(2),
          ``(B) the 87\1/2\ percent or less limitation contained in the 
        1st, 2nd, 4th, or 5th proviso to subsection (b)(2) or in 
        section 1112(b), or
          ``(C) the 80 percent or less limitation in the 3rd proviso to 
        such subsection,
establish by rule, regulation, or procedure any percentage within any 
such limitation that is, or is intended to be, applied uniformly to all 
guarantees or commitments to guarantee made under this section that are 
subject to the limitation.
  ``(2) With respect to Export Credit Understanding vessels and 
Shipbuilding Agreement vessels, the Secretary may establish by rule, 
regulation, or procedure a uniform percentage that the Secretary 
determines to be consistent with obligations of the United States under 
the Export Credit Understanding or the Shipbuilding Agreement, as the 
case may be.''.
                  (C) Section 1104B(b) (46 App. U.S.C. 1274a(b)) is 
                amended by striking the period at the end and inserting 
                the following:
``, except that, with respect to Export Credit Understanding vessels 
and Shipbuilding Agreement vessels, the Secretary may establish by 
rule, regulation, or procedure a uniform percentage that the Secretary 
determines to be consistent with obligations of the United States under 
the Export Credit Understanding or the Shipbuilding Agreement, as the 
case may be.''.

                       TITLE III--REVENUE OFFSET

SEC. 301. PENALTIES FOR FAILURE TO DISCLOSE POSITION THAT CERTAIN 
                    INTERNATIONAL SHIPPING INCOME IS NOT INCLUDIBLE IN 
                    GROSS INCOME.

  (a) In General.--Section 883 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subsection:
  ``(d) Penalties for Failure to Disclose Position That Certain 
International Shipping Income Is Not Includible in Gross Income.--
          ``(1) In general.--A taxpayer who, with respect to any tax 
        imposed by this title, takes the position that any of its gross 
        income derived from the international operation of a ship or 
        ships is not includible in gross income by reason of subsection 
        (a)(1) or section 872(b)(1) shall be entitled to such treatment 
        only if such position is disclosed (in such manner as the 
        Secretary may prescribe) on the return of tax for such tax (or 
        any statement attached to such return).
          ``(2) Additional penalties for failing to disclose 
        position.--If a taxpayer fails to meet the requirement of 
        paragraph (1) with respect to any taxable year--
                  ``(A) the amount of the income from the international 
                operation of a ship or ships--
                          ``(i) which is from sources without the 
                        United States, and
                          ``(ii) which is attributable to a fixed place 
                        of business in the United States,
                shall be treated for purposes of this title as 
                effectively connected with the conduct of a trade or 
                business within the United States, and
                  ``(B) no deductions or credits shall be allowed which 
                are attributable to income from the international 
                operation of a ship or ships.
          ``(3) Reasonable cause exception.--This subsection shall not 
        apply to a failure to disclose a position if it is shown that 
        such failure is due to reasonable cause and not due to willful 
        neglect.''
  (b) Conforming Amendments.--
          (1) Paragraph (1) of section 872(b) of such Code is amended 
        by striking ``Gross income'' and inserting ``Except as provided 
        in section 883(d), gross income''.
          (2) Paragraph (1) of section 883(a) of such Code is amended 
        by striking ``Gross income'' and inserting ``Except as provided 
        in subsection (d), gross income''.
  (c) Effective Date.--
          (1) In general.--Notwithstanding section 3, the amendments 
        made by this section shall apply to taxable years beginning 
        after the later of--
                  (A) December 31, 1996, or
                  (B) the date that the Shipbuilding Agreement enters 
                into force with respect to the United States.
          (2) Coordination with treaties.--The amendments made by this 
        section shall not apply in any case where their application 
        would be contrary to any treaty obligation of the United 
        States.
  (d) Information To Be Provided by Customs Service.--The United States 
Custom Service shall provide the Secretary of the Treasury or his 
delegate with such information as may be specified by such Secretary in 
order to enable such Secretary to determine whether ships which are not 
registered in the United States are engaged in transportation to or 
from the United States.

                            I. INTRODUCTION

                        A. Purposes and Summary

    H.R. 2754, as amended by the Committee, entitled the 
Shipbuilding Trade Agreement Act, implements the Organization 
for Economic Cooperation and Development (OECD) Agreement on 
Shipbuilding.
    H.R. 2754, as amended, would implement the Agreement under 
U.S. law. Specifically, the bill would establish an injurious 
pricing mechanism analogous to Title VII of the Tariff Act of 
1930, which implements the antidumping provisions of the 
Uruguay Round. In addition, the bill would eliminate the 
current 50 percent duty on repairs to U.S. flag vessels made in 
signatory countries. The bill would also amend the Merchant 
Marine Act of 1936 to assure U.S. compliance with the 
Agreement. Finally, the bill would establishes penalties for 
failure to file a disclosure of exemption for shipping income 
of foreign persons.

                 B. Background and Need for Legislation

    After five years of negotiation, key shipbuilding nations 
(the United States, the European Union, Japan, South Korea, and 
Norway) completed negotiations and signed on December 21, 1994, 
the Agreement Respecting Normal Competitive Conditions in the 
Commercial Shipbuilding and Repair Industry. The Agreement, 
negotiated under the auspices of the OECD, applies to the 
construction and repair of self-propelled seagoing vessels of 
100 gross tons and above, and covers approximately 80 percent 
of world shipbuilding capacity for ships engaged in global 
shipping. The Agreement is scheduled to enter into force 30 
days after all signatories deposit instruments of ratification, 
acceptance, or approval. The target date for entry into force 
is July 15, 1996. In the United States, legislation must be 
enacted by Congress to bring U.S. law into compliance with the 
Agreement.
    The Agreement eliminates virtually all shipbuilding 
subsidies granted either directly to shipbuilders or indirectly 
through ship operators or other entities. In addition, it 
contains an injurious pricing code to prevent dumping in the 
shipbuilding industry, a comprehensive discipline in government 
financing for exports and domestic ship sales, and a dispute 
settlement mechanism.

                         C. Legislative History

    H.R. 2754 was introduced on December 11, 1995, by Chairman 
Philip M. Crane, Congressman Sam Gibbons and Congresswoman 
Jennifer Dunn. The bill was referred to the Committee on Ways 
and Means, and in addition to the Committee on National 
Security.
     On March 21, 1996, the Committee on Ways and Means met to 
consider H.R. 2754. At that time, Chairman Archer, for himself, 
Chairman Crane, Mr. Gibbons, and Ms. Dunn, offered an amendment 
in the nature of a substitute to H.R. 2374. The amendment was 
agreed to by voice vote. The Committee then ordered the bill 
favorable voted, as amended, by a roll-call vote of 27 to 4.

                     II. EXPLANATION OF PROVISIONS

                            A. Sections 1-3

Explanation of provisions

    Section 1 provides that the short title of the bill is the 
Shipbuilding Trade Agreement Act. Section 2 provides that 
Congress approves the OECD Agreement on Shipbuilding. Section 3 
provides that the Act would take effect on the date that the 
Shipbuilding Agreement enters into force with respect to the 
United States. The Agreement is scheduled to enter into force 
30 days after all signatories deposit instruments of 
ratification, acceptance, or approval. The target date for 
entry into force is July 15, 1996.

           B. Title 1: Injurious Pricing And Countermeasures

   1. SECTION 101: INJURIOUS PRICING AND COUNTER-MEASURES PROCEEDINGS

                             a. In General

Present law

     There are no provisions under current law that permit the 
collection of an injurious pricing charge and the assessment of 
countermeasures against ships sold to U.S. buyers at dumped 
prices in a manner that injures the U.S. shipbuilding industry. 
All references to present law in this report with respect to 
antidumping refer to Title VII of the Tariff Act of 1930, as 
amended, which sets forth procedures for assessment of 
antidumping duties according to the antidumping remedy of the 
World Trade Organization.

Explanation of provision

    Title I of H.R. 2754, as amended, would establish a new 
Title VIII to the Tariff Act of 1930, as amended, in order to 
create an injurious pricing mechanism applicable to 
shipbuilding. Title VIII would be analogous to the current 
antidumping provisions of Title VII of the Tariff Act of 1930, 
as amended, revised only where necessary to take into account 
differences between the Shipbuilding Agreement and the WTO 
antidumping agreement and differences due to the unique nature 
of ocean-going vessels. Accordingly, only the differences 
between Title VII and the new Title VIII are outlined below in 
this report.

Reason for change

    The Shipbuilding Agreement establishes a mechanism for the 
determination of injurious pricing in a manner analogous to the 
antidumping provisions of the World Trade Organization. In 
addition, the Agreement provides for the assessment of an 
injurious pricing charge and countermeasures where 
appropriate--remedies that are different from those of Title 
VII. Because ocean-going vessels engaged in international trade 
are technically not imported or entered for consumption in the 
United States, it is virtually impossible to use the 
antidumping remedies of Title VII of the Tariff Act of 1930, as 
amended, to cover vessels. Accordingly, separate statutory 
authority is required to implement the Agreement.

       b. Section 801 of New Title VIII: Injurious Pricing Charge

Present law: Title VII

     Section 731 of Title VII provides that antidumping duties 
shall be assessed against imports of a class or kind of 
merchandise if the Department of Commerce determines that the 
merchandise is being, or is likely to be, sold in the United 
States at less than its fair value and the International Trade 
Commission (ITC) determines that an industry in the United 
States is materially injured or is threatened with material 
injury or the establishment of an industry in the United States 
is materially retarded by reason of imports of that 
merchandise. The amount of the antidumping duty would be the 
amount by which normal value exceeds the export price. The duty 
is generally to be applied to entries made after the Commerce 
Department makes its preliminary determination.

Explanation of provision

    Section 801 would require the imposition of a one-time 
injurious pricing charge against the foreign shipbuilder if 
Commerce determines that a vessel produced by that shipbuilder 
has been sold directly or indirectly to a U.S. buyer at less 
than its fair value and the ITC determines that an industry in 
the United States is or has been materially injured or 
threatened with material injury or the establishment of an 
industry in the United States is or has been materially 
retarded by reason of the sale of that vessel. The amount of 
the injurious pricing charge is to be the amount by which 
normal value exceeds the export price. The injurious pricing 
charge would be assessed once, for the sale in question. Once 
the charge is paid, there would be no continuing liability on 
future sales or scrutiny of sales of other vessels unless a 
separate investigation is conducted for such sales.

Reason for difference

    Although the antidumping statute has been used as a model 
for Title VIII, several changes are required to take into 
account the unique nature of ships and the requirements of the 
Shipbuilding Agreement. Specifically, because ocean-going 
vessels engaged in international trade are technically not 
imported or entered for consumption in the United States, the 
Agreement and the implementing bill would permit investigations 
to be commenced when a vessel is sold directly or indirectly to 
a U.S buyer, regardless of whether the vessel enters the United 
States.
    For the same reason, the traditional antidumping mechanism 
of imposing an antidumping duty on future entries would not 
provide the domestic industry with sufficient relief. 
Accordingly, the Agreement and the implementing bill would 
establish a one-time injurious pricing charge to be assessed 
against the shipyard producing the injuriously priced vessel.
    Finally, because the determination of injurious pricing is 
focused on the sale under investigation and not subsequent 
sales, the injury investigation (except with regard to threat 
of material injury) would be necessarily retrospective. 
However, in a Title VII case, the ITC determines whether the 
domestic industry is materially injured or threatened with 
material injury (i.e., whether the industry is in a state of 
present material injury by reason of subject imports). In 
making this determination, the ITC may not rely on the 
lingering effects of an injury experienced in the past or a 
determination that the effects of a previous injury are 
presently being felt. Instead, the ITC must determine whether 
the subject imports are causing present injury to the domestic 
industry at the time of its determination. By contrast, the 
Shipbuilding Agreement and implementing bill, in a recognition 
of the retrospective nature of injurious pricing investigations 
in the shipbuilding context, would permit consideration of 
whether an industry is or has been injured. Accordingly, the 
Committee intends that the material injury standards of Title 
VII and Title VIII be interpreted differently. However, even 
under Title VIII, the Committee intends that in order to reach 
an affirmative determination, the ITC must find that injury has 
been by reason of the vessel under investigation.

    c. Section 802 of New Title VIII: Procedures for Instituting an 
                    Injurious Pricing Investigation

Present law: Title VII

    Section 735 does not provide for a time period after a 
dumped sale within which a petition must be filed or an 
investigation self-initiated by Commerce. However, in order to 
obtain relief, dumping and injury must have occurred during the 
agencies' period of investigation (POI). Commerce generally 
investigates entries during the twelve months prior to the 
filing of the petition, and the ITC's POI is generally the last 
three full years, plus any interim period of the current year. 
If dumped sales did not occur during that period, it would be 
difficult for a petitioner to prevail.
    Section 771(9)(A) states that if a petitioner is an 
interested party entitled to bring a petition because it is a 
producer of a domestic like product, it must (except in the 
case of material retardation) in fact be a producer of a 
domestic like product. However, it is not required to show that 
it made an effort to sell like merchandise to the purchaser. 
Section 732(c)(4) sets forth the standing requirements for 
petitioners. A petitioner must file ``on behalf of'' the 
industry, and the nature of the support for the petition is 
specified as follows:
          domestic producers or workers who support the 
        petition must account for at least 25 percent of total 
        production of the domestic like product; and
          domestic producers or workers who support the 
        petition must account for more than 50 percent of 
        production of the domestic like product produced by 
        that portion of the industry expressing views.
    Section 732(c)(1) provides a 20-day deadline for initiating 
an investigation after the filing of a petition, assuming that 
the petition meets the requirements. This deadline may be 
extended to 40 days if Commerce needs additional time to 
determine industry support for the petition.
    Title VII does not provide for the delay or termination of 
an investigation if another WTO party is taking action against 
like merchandise from the subject country.

Explanation of provision

    Section 802 sets forth the procedures for conducting an 
injurious pricing investigation. Section 802(a) describes 
procedures for initiation by the Commerce and provides that an 
investigation may only be self-initiated within six months 
after the time that Commerce first knew or should have known of 
the sale of the vessel. Section 802(b) describes the procedures 
for initiation by petition, requiring that a petition be filed 
within either six or nine months (depending on circumstances) 
from the time the petitioner knew or should have known of the 
sale of the vessel, but no later than six months after the 
delivery of the vessel. If these deadlines are not met, an 
investigation may not go forward.
    Section 802(b)(1) provides that if a petitioner is a 
producer, it must show that it had the capability to produce 
the subject vessel. In addition, if the sale was made through a 
bidding process that was either a broad multiple bid or to 
which the producer was invited to bid, the petitioner must show 
that it made a timely effort to obtain the sale through a 
proposal that met bid specifications. If the sale was not made 
through a broad multiple bid and the petitioner was not invited 
to bid but knew or should have known of the proposed purchase, 
the petitioner must show it made timely efforts to conclude a 
sale consistent with the buyer's requirements.
    Section 802(d)(1) provides a 45-day deadline, with no 
extension, for initiating an investigation after the filing of 
a petition, assuming that the petition meets the requirements 
set forth. Section 802(d)(4) sets forth the standing 
requirements for petitioners. A petitioner must file ``on 
behalf of'' the industry, and the nature of the support for the 
petition is specified as follows:
          domestic producers or workers who support the 
        petition must account for at least 25 percent of the 
        total capacity of domestic producers capable of 
        producing the like vessel; and
          domestic producers or workers who support the 
        petition must account for more than 50 percent of the 
        total capacity to produce the like vessel of that 
        portion of the industry expressing views.
    Section 802(d)(6) provides that Commerce is not to initiate 
an investigation if an antidumping proceeding by a WTO member 
who is not a party to the Shipbuilding Agreement which covers 
the same vessel either has been initiated and has been pending 
for not more than a year or has been completed and resulted in 
the imposition of antidumping measures or a negative 
determination.

Reason for difference

    Because each investigation under the Agreement will involve 
only one, specific transaction, it is necessary to establish 
deadlines for the filing of petitions and for self-initiation 
to cover that transaction that are not needed under Title VII, 
in which all entries during the period very recent to the 
investigation are examined.
    In addition, because vessels are generally unique and made 
to specifications, a domestic producer may not have produced a 
like vessel but could still be injured by the sale because that 
producer was capable of producing the like vessel. The 
Committee does not intend to weaken the requirement for Title 
VII investigations that the petitioner, if a producer, actually 
produce or manufacture the like product.
    A 45-day period for determining whether to initiate, as 
opposed to 20 days with a possible extension to 40 days, would 
be established for Title VIII because of the Administration's 
concern that the unique standing requirements and deadlines for 
filing petitions create additional complexities requiring more 
time to determine the sufficiency of the petition.
    Depending on the circumstances of the sale of a vessel, it 
is possible that a U.S. producer may seek to bring a Title VIII 
action against the same vessel that is subject to an 
antidumping action by a WTO member that is not an Agreement 
member. Accordingly, the Shipbuilding Agreement requires the 
non-initiation of an action by an Agreement member if another 
action is pending to avoid double penalties. Title VIII would 
implement this requirement.

      d. Section 803 of New Title VIII: Preliminary Investigations

Present law: Title VII

    Section 733(a) provides that the ITC is to make its 
preliminary determination within 45 days after the filing of 
the petition, or within 25 days of the date in which Commerce 
notifies the ITC of initiation if Commerce takes additional 
time to determine industry support for the petition.
    Section 733(b) states that Commerce is to make its 
preliminary determination within 140 days after initiation. An 
extension is permitted in extraordinarily complicated cases or 
for good cause until not later than 190 days from initiation.
    Section 733(d) requires the posting of a bond or cash 
deposit in the amount of the preliminary dumping margin upon 
publication of an affirmative preliminary determination. As a 
result, duties may be assessed against merchandise entering 
after an affirmative preliminary dumping determination, and 
even sooner under certain circumstances.

Explanation of provision

    Section 803(a) would require the ITC to make its 
preliminary determination within 90 days after the filing of 
the petition.
    Section 803(b)(1) provides that the deadline for Commerce's 
preliminary determination is tied to the date on which the 
vessel has been delivered if it will use cost data to determine 
normal value or if normal value is to be determined on the 
basis of constructed value (as opposed to comparison of like 
vessel in home or third county market), which may delay the 
investigation for several years.
     Section 803(b) states that Commerce is to make its 
preliminary determination within 160 days after initiation or 
160 days after the date of delivery in a cost or constructed 
value investigation. An extension is permitted in 
extraordinarily complicated cases or for good cause until not 
later than 190 days of initiation or the date of delivery, as 
the case may be.
     Title VIII would not permit any provisional remedy if an 
affirmative preliminary determination is made.

Reason for difference

    The difference in the time periods for preliminary 
determinations in Title VIII cases versus Title VII 
investigations is related to the different nature of the 
investigations. Due to the unique nature of vessels, a Title 
VIII cost investigation must be delayed until construction is 
complete so that Commerce may obtain actual cost information.
    Because the remedies for Title VII and Title VIII would be 
completely different, the effect of a preliminary affirmative 
Commerce determination would be different as well. Under Title 
VIII, because a one-time charge would be imposed after a final 
determination has been made, no relief after the preliminary 
investigation is necessary. However, under Title VII, a duty is 
applied on entries after the preliminary determination. 
Accordingly, suspending liquidation and requiring the posting 
of a bond or cash deposit after a preliminary affirmative 
Commerce determination is warranted in Title VII cases.

    e. Section 804 of New Title VIII: Termination or Suspension of 
                             Investigation

Present law: Title VII

    Title VII does not permit the suspension or termination of 
an investigation based on action by a third country.

Explanation of provision

    Section 804(d) provides for the suspension of an 
investigation if a WTO member that is not a party to the 
Shipbuilding Agreement initiates an antidumping proceeding with 
respect to the same vessel. The investigation would be 
terminated if the third country proceeding results in the 
imposition of antidumping measures or a negative determination. 
Otherwise, or if the investigation is not concluded within one 
year, the suspension would end and the Title VIII investigation 
would proceed.

Reason for difference

    As described above, it is possible that a U.S. producer may 
seek to bring a Title VIII action against a vessel that is 
subject as well to antidumping action by a WTO member that is 
not an Agreement member, if the vessel is sold to a buyer in 
the United States and is also determined to be subject to an 
antidumping investigation by a third country. Accordingly, the 
Shipbuilding Agreement requires the suspension or termination 
of an action by an Agreement member if another action is 
pending to avoid double penalties, and section 804(d) would 
implement that requirement.

         f. Section 805 of New Title VIII: Final Determinations

Present law: Title VII

    Under section 735(a), Commerce is required to make its 
final determinations within 75 days after its preliminary 
determination. This period may be extended under certain 
circumstances to 135 days after publication of the preliminary 
determination.
    Section 735(b) provides that the ITC is to make its final 
determination before the later of the 120th day on which 
Commerce makes its affirmative preliminary determination or the 
45th day after the day on which Commerce makes its affirmative 
final determination.

Explanation of provision

    Section 805(a) provides that Commerce would be required to 
make its final determinations not later than 75 days after its 
preliminary determination. This period may be extended under 
certain circumstances to 290 days after initiation in ordinary 
cases or after delivery of the vessel in cost or constructed 
value investigations.
    Section 805(b) provides that the ITC would be required to 
make its final determination before the later of the 120th day 
on which Commerce makes its affirmative preliminary 
determination or the 45th day after the day on which Commerce 
makes its affirmative final determination.

Reason for difference

    The difference in the time periods for final determinations 
in Title VIII cases versus Title VII investigations is related 
to the different nature of the investigations and the delays 
that may be caused by use of actual cost data under certain 
circumstances.

g. Section 806 of New Title VIII: Imposition and Collectionof Injurious 
                             Pricing Charge

Present law: Title VII

    Section 736 provides that if Commerce and the ITC each make 
affirmative final determinations, then Commerce is to publish 
an antidumping order requiring the collection of a cash deposit 
in the amount of the final antidumping margin against all 
future entries within the scope of the order.
    Section 751(a) provides for an annual review of each 
antidumping order, during which Commerce examines the entries 
made during the past year and determines the actual dumping 
margin for those entries. Accordingly, under this retrospective 
system, duties are not finally assessed until well after an 
entry has been made. The new final dumping margin becomes the 
cash deposit rate for future entries, until the conclusion of 
the next administrative review.
    Section 751(c) provides that all orders are to be 
terminated (i.e., sunset) after five years unless the agencies 
determine that dumping and injury would be likely to continue 
or recur.

Explanation of provision

    In the event of final affirmative determinations by 
Commerce and the ITC under the new Title VIII, Commerce would 
be required to publish an order imposing a one-time injurious 
pricing charge on the foreign shipbuilder in amount of the 
injurious pricing for the vessel subject to investigation, to 
be paid within 180 days. The payment period may be extended 
under extraordinary circumstances, subject to interest charges. 
Once the charge is paid, there would be no continuing liability 
on future sales or scrutiny of sales of other vessels by that 
shipbuilder unless a new investigation is conducted. A vessel 
purchased by a U.S. buyer after the order must be the subject 
of a new investigation for an injurious pricing charge to cover 
it. There would be no provision for an administrative review or 
a sunset review.

Reason for difference

    The new Title VIII would establish a remedy for injurious 
pricing that is different from that of Title VII in order to 
comply with the Agreement and because of the differences in the 
nature of transactions concerning ships. Because vessels 
engaged in international trade do not enter the United States 
for consumption, the traditional antidumping mechanism of 
imposing an antidumping duty on future entries would not 
provide the domestic industry with sufficient relief. 
Accordingly, the Agreement and the implementing bill would 
establish a one-time injurious pricing charge to be assessed 
against the shipyard producing the injuriously priced vessel. 
Because the remedy would be a one-time charge, there is no need 
for an administrative or sunset review of the order.

    h. Section 807 of New Title VIII: Imposition of Countermeasures

Present law: Title VII

    Neither Title VII nor the WTO antidumping agreement permits 
the imposition of countermeasures. Instead, the antidumping 
duty order affects entries of merchandise made after the 
affirmative Commerce determination, in most cases.

Explanation of provision

    Section 807 provides that failure to pay the injurious 
pricing charge imposed against a foreign shipbuilder subjects 
that shipbuilder to the imposition of countermeasures. The 
countermeasures would take the form of a temporary denial (for 
a period of up to four years after delivery of vessel) of 
privileges to load or unload in the United States to vessels 
contracted to be built by the offending shipbuilder within four 
years after the effective date of the order.
    Sections 807(b) and (c) set forth the procedures for 
establishing countermeasures. Specifically, section 807(b) 
would require Commerce to publish a notice of an intent to 
impose countermeasures not later than 30 days before the 
expiration of the time for payment of the injurious pricing 
charge. Under section 807(c), Commerce would be required to 
issue a determination and order imposing countermeasures within 
90 days after the notice of intent is published. In issuing 
this order, Commerce would be required to determine whether an 
interested party has demonstrated that the scope or duration of 
the countermeasures should be narrower or shorter than that set 
forth in the notice of intent.
    Section 807(d) provides that if countermeasures are 
imposed, they may be reviewed annually as to scope and 
duration.
    Section 807(e) provides that countermeasures may be 
extended in scope and duration beyond four years only if a 
panel established under the Agreement so determines.
    Finally, section 807(f) would require Commerce to publish 
each year a list of all vessels subject to countermeasures and 
to provide notice to certain interested parties.

Reason for difference

    Because an order under Title VII generally affects future 
entries, an importer may not avoid antidumping duties except by 
halting imports or ceasing to dump. However, because an order 
under Title VIII would not apply to future vessels delivered by 
the shipyard in question, the United States would have no 
recourse if the shipyard simply did not pay the injurious 
pricing charge. Accordingly, it is necessary to establish a 
mechanism for enforcing an order if the shipyard does not pay 
the injurious pricing charge, and Title VIII and the Agreement 
establish a countermeasure procedure as an enforcement 
mechanism.
    The Committee emphasizes that under section 861(17)(G), 
purchasers of vessels potentially subject to countermeasures 
have standing under Title VIII to participate fully in 
proceedings concerning the imposition of countermeasures. The 
Committee expects that the views of such purchasers, as well as 
other entities such as domestic producers and respondents, be 
considered in making countermeasure determinations.
    The Committee also notes that the countermeasures would 
apply to vessels contracted to be built by the offending 
foreign producer after the date of the order imposing 
countermeasures. Specifically, a vessel would be covered if the 
material terms of sale for that vessel are established within a 
period of four consecutive years beginning 30 days after the 
notice of intent is published. The Committee is concerned that 
purchasers be given ample notice as to vessels that may be 
potentially covered by the countermeasure order and wishes to 
avoid situations in which purchasers would not have sufficient 
notice that changes in contract terms could subject the vessel 
to countermeasures. Accordingly, the Committee intends that 
only significant, material changes in the contract terms of a 
legitimate contract entered into before the effective date of 
the order should push the sale into the period covered by 
countermeasures if those changes were made after the order's 
effective date. Such significant changes amount to more than, 
for example, merely changing the delivery date because of 
construction delays, changing vessel specifications in a manner 
that does not affect the overall nature of the vessel subject 
to the contract, or other minor changes in price or terms. Of 
course, the Committee also intends that a vessel to be built 
within the countermeasure period would be included in the 
countermeasure order if a sham contract were established 
covering the vessel before the effective countermeasure date 
simply to avoid imposition of countermeasures.
    The Committee notes that countermeasures are a remedy 
unique to Title VIII, and that certain purchasers have standing 
as interested parties in these countermeasure proceedings. 
Accordingly, the Committee intends that Commerce, in 
determining whether to limit the scope and duration of a 
countermeasure order to exclude certain vessels that may fall 
within the countermeasure period, should take into account, 
among all the circumstances to be considered, evidence that 
only a shipyard subject to countermeasures is able to produce a 
vessel to the specifications required by the purchaser within 
the reasonable time period requested by that purchaser. At the 
same time, it is also the Committee's view that neither this 
nor any other single factor should necessarily be dispositive 
in any determination. In addition, the exercise of such 
discretion is intended to avoid unduly damaging purchasers, but 
should not undermine the goal of enforcing payment of the 
original injurious pricing charge.

i. Section 808 of New Title VIII: Injurious Pricing Petitions by Third 
                               Countries

Present law: Title VII

    Section 783 provides that the government of a WTO member 
may file with USTR a petition requesting an investigation to 
determine whether imports from another WTO member have been 
sold in the United States at less than fair value and that an 
industry in the petitioning country is materially injured by 
the imports. After consulting with Commerce and the ITC, USTR 
is required to determine whether to initiate an investigation 
and must obtain the approval of the WTO Council for Trade in 
Goods prior to initiating an investigation.

Explanation of provision

    Section 808 provides that the government of a party to the 
Shipbuilding Agreement may file with USTR a petition requesting 
an investigation to determine whether a vessel from another 
Agreement party has been sold to a U.S. buyer at less than fair 
value and that an industry in the petitioning country is 
materially injured by the sale. After consulting with Commerce 
and the ITC and obtaining the approval of the Parties Group 
under the Agreement, USTR would be required to determine 
whether to initiate an investigation.

Reason for difference

    Section 808 is comparable to section 783 and is intended to 
provide an opportunity to conduct an investigation if the 
injury caused by unfair pricing is experienced in another 
country. This provision is intended to implement the 
Shipbuilding Agreement.

             j. Section 821 of New Title VIII: Export Price

Present law: Title VII

    Section 772 sets forth the rules for determining the export 
price or constructed export price to be used in antidumping 
investigations. Section 772(a) defines ``export price'' as the 
price at which the subject merchandise is first sold (or agreed 
to be sold) before the date of importation by the producer or 
exporter of the subject merchandise outside the United States 
to an unaffiliated purchaser in the United States or to an 
unaffiliated purchaser for exportation to the United States.
    Section 772(b) defines ``constructed export price'' as the 
price at which the subject merchandise is first sold (or agreed 
to be sold) in the United States before or after the date of 
importation by or for the account of the producer or exporter 
of such merchandise or by a seller affiliated with the producer 
or exporter, to an unaffiliated purchaser.
    Sections 772(c) and (d) set forth the adjustments to be 
made to export price and constructed export price.

Explanation of provision

    Section 821 sets forth the rules for determining the export 
price to be used in injurious pricing investigations. ``Export 
price'' is defined as the price at which the subject vessel is 
first sold (or agreed to be sold) by or for the account of the 
foreign producer of the subject vessel to an unaffiliated U.S. 
buyer. Such a sale would include any transfer in ownership 
interest, including by lease or long-term bareboat charter, in 
conjunction with the original transfer from the producer, 
either directly or indirectly, to a U.S. buyer. Section 821(b) 
sets forth the adjustments to be made to export price.

Reason for difference

    Title VIII sets forth a definition of export price that is 
similar to the definition in Title VII. Because of the unique 
manner in which vessels are sold, there is no need for a 
constructed export price concept as in Title VII.

             k. Section 822 of New Title VIII: Normal Value

Present law: Title VII

    The extent to which normal value exceeds export price is 
the amount of dumping. Section 773(a)(1) provides that where 
possible, normal value represents the price of like merchandise 
in the home market, as adjusted. If home market sales are not 
available or are so few as to form an inadequate basis for 
comparison, then Commerce resorts to either the price at which 
the merchandise is sold in third countries or to a constructed 
value to determine normal value. Section 773(e) provides that 
in constructed value situations, normal value is derived by 
constructing a normal value based on a statutory formula, which 
is the sum of the costs of production, plus the actual amount 
of profit and selling, administrative, and general expenses.
    Section 773(b) provides that if Commerce determines that 
home market sales at less than the cost of production have been 
made within an extended period of time in substantial 
quantities and were not at prices that permit the recovery of 
costs within a reasonable period of time, then these sales may 
be disregarded in determining normal value. If there are no 
sales above cost, then Commerce must use constructed value to 
determine normal value.
    Section 773(f)(1)(C) provides for adjusting costs if they 
have been affected by startup operations. Title VII contains no 
special provision for adjusting costs due to ``extraordinary 
circumstances'' such as labor disputes, fire, or natural 
disaster.

Explanation of provision

    Section 822(a)(1) provides that normal value, where 
possible, would represent the price of a like vessel in home 
market, as adjusted, if sold at a time that is reasonably 
corresponding to the time of sale under investigation. Section 
822(a)(1)(D) defines such contemporaneous sales as being within 
three months before or after the sale of the subject vessel or, 
in the absence of such sales, such longer period as Commerce 
determines would be appropriate. If home market sales are not 
available, Commerce would be required to resort first to third 
country sales. Only if such sales are inappropriate could 
Commerce use constructed value to determine normal value. 
Section 822(e) provides that in constructed value situations, 
normal value would be derived based on a statutory formula, 
which is the sum of the costs of production, plus the actual 
amount of profit and selling, administrative, and general 
expenses. Under section 803(b)(1)(C), if constructed value is 
used, the investigation may be delayed until the ship in 
question has been constructed even though the petition was 
filed at the time of contract.
    Section 822(b) states that if Commerce determines that a 
home market sale was made at less than cost of production and 
does not permit recovery of all costs within five years, that 
sale may be disregarded in determining normal value. If a sale 
is disregarded, normal value would be based on another sale of 
a foreign like vessel. If no such sales are available, normal 
value would based on the constructed value of the subject 
merchandise.
    Section 822(f)(1)(C) provides for adjusting costs if they 
have been affected by startup operations. Section 822(f)(1)(D) 
would require that costs due to ``extraordinary circumstances'' 
such as labor disputes, fire, and natural disaster, be 
excluded.

Reason for difference

    The rules applicable to normal value in Title VIII are 
similar to those of Title VII, adjusted where necessary to take 
into account the lengthy periods required to construct ships 
and the fact that, due to the unique nature of vessels, there 
often are few, if any, vessels constructed by the foreign 
shipbuilder that may be used as an appropriate comparison.
    The Committee understands that the Administration expects 
to use constructed value in most investigations because of lack 
of actual comparable sales. However, the Committee expects that 
Commerce will make every effort to base normal value on home 
market or third country sales if they are available within a 
reasonably coincident period because a comparison based on 
actual sales is generally more indicative of whether there in 
fact has been injurious pricing.

         l. Section 823 of New Title VIII: Currency Conversion

Present law: Title VII

    Under section 773A(a), Commerce is required to convert 
foreign currency into U.S. dollars using the exchange rate in 
effect on the date of sale of the subject merchandise, except 
that if it is established that a currency transaction on 
forward markets is directly linked to a sale under 
consideration, the rate specified in the forward sale agreement 
is to be used. Fluctuations in exchange rates are to be 
ignored.
    Under section 773A(b), if there is a sustained movement in 
the value of the foreign currency relative to the U.S. dollar, 
Commerce is to allow exporters at least 60 days to adjust their 
export prices to reflect such sustained movements.

Explanation of provision

    Under section 823(a), Commerce would be required to convert 
foreign currency into U.S. dollars using the exchange rate in 
effect on the date of sale of the subject vessel, except that 
if it is established that a currency transaction on forward 
markets is directly linked to a sale under consideration, the 
rate specified in the forward sale agreement would be used.
    Section 823(b) would define the date of sale as the date of 
the contract of sale. If the material terms of sale are 
significantly changed after that date, the date of sale would 
be the date of the change, and Commerce would be required to 
adjust for any unreasonable effect on the margin due only to 
fluctuations in the exchange rate between the original and the 
new dates of sale.

Reason for difference

    The differences between section 823 and section 773A of 
Title VII reflect differences in the nature of the respective 
remedies as well as particular characteristics of the 
shipbuilding industry. In a Title VII investigation, Commerce 
generally investigates multiple transactions over a period of 
investigation that lasts six months. During that period of 
time, the exchange rate may fluctuate or change. Accordingly, 
under Title VII, Commerce is required to allow time to adjust 
prices in response to sustained changes in the exchange rate. 
However, each Title VIII investigation would involve only a 
single export transaction.
    Furthermore, two years or more may elapse between the time 
a ship contract is signed and ship construction is completed. 
Because of the long lead-time, during which numerous contract 
modifications may occur that would change the date of sale, 
there is much greater potential for movements in exchange rates 
to unreasonably distort the margin calculation for that sale. 
Therefore, section 823 requires adjustments to eliminate such 
distortions.

           m. Sections 841-845 of New Title VIII: Procedures

Present law: Title VII

    Sections 774, 776, 777, and 782 of Title VII and section 
129 of the Uruguay Round Agreements Act set forth procedural 
requirements concerning antidumping investigations. 
Specifically, section 774 requires Commerce and the ITC each to 
hold hearings upon request during their investigations.
    Section 776 provides for determinations on the basis of 
facts available. A number of new procedural safeguards were 
added as part of the Uruguay Round Agreements Act, including 
limiting the use of adverse inferences to those cases in which 
the agency finds that an interested party has failed to 
cooperate by not acting to the best of its ability to comply 
with a request for information. Moreover, whenever the agency 
relies on secondary information, the agency, to the extent 
practicable, is to corroborate that information.
    Section 777 sets forth the requirements for making 
information concerning the investigation available to the 
public, treating information as proprietary, disclosing 
proprietary information under protective order, serving 
submissions on other parties, handling violations of protective 
orders and sanctions, providing opportunity for comment by 
consumers and industrial users, and publishing determinations.
    Section 782 sets forth procedures for conducting 
investigations, including certification of submissions, the 
manner for handling difficulties by the parties in meeting 
requirements of the investigation, treatment of deficient 
submissions, use of information submitted by the parties, 
nonacceptance of submissions, public comment on information, 
and verification of information submitted. One of the most 
important elements of section 782 is the requirement that the 
agencies shall not decline to consider information submitted by 
an interested party that is necessary to the determination but 
does not meet all of the requirements of the agency, if the 
information is submitted by the deadline, it can be verified, 
it is not so incomplete that it cannot serve as a reliable 
basis for reaching a determination, the interested party acted 
to the best of its ability to provide the information, and the 
information can be used without undue difficulties.
    Because antidumping and injury determinations are subject 
to WTO dispute resolution, section 129 of the Uruguay Round 
Agreements Act sets forth the requirements for administrative 
action following WTO panel reports.

Explanation of provisions

    Sections 841 through 845 of H.R. 2754, as amended, set 
forth procedural requirements concerning the injurious pricing 
mechanism. Specifically, section 841 provides that Commerce and 
the ITC are each to hold hearings upon request during their 
investigations.
    Section 842 provides for determinations on the basis of 
facts available. As with Title VII, the use of adverse 
inferences would be limited to those cases in which the agency 
finds that an interested party has failed to cooperate by not 
acting to the best of its ability to comply with a request for 
information. Moreover, whenever the agency relies on secondary 
information, the agency, to the extent practicable, would be 
required to corroborate that information.
    Section 843 sets forth the requirements for making 
information concerning the investigation available to the 
public, treating information as proprietary, disclosing 
proprietary information under protective order, serving 
submissions on other parties, handling violations of protective 
orders and sanctions, providing opportunity for comment by 
vessel buyers, and publishing determinations.
    Section 844 sets forth procedures for conducting 
investigations, including certification of submissions, the 
manner for handling difficulties by the parties in meeting 
requirements of the investigation, treatment of deficient 
submissions, use of information submitted by the parties, 
nonacceptance of submissions, public comment on information, 
and verification of information submitted. The provision would 
require that the agencies not decline to consider information 
submitted by an interested party that is necessary to the 
determination but does not meet all of the requirements of the 
agency, if the information is submitted by the deadline, it can 
be verified, it is not so incomplete that it cannot serve as a 
reliable basis for reaching a determination, the interested 
party acted to the best of its ability to provide the 
information, and the information can be used without undue 
difficulties.
    Because injurious pricing determinations are subject to 
dispute resolution under the Agreement, section 845 sets forth 
the requirements for administrative action following 
Shipbuilding Agreement panel reports.

Reason for difference

    The Committee intends that the procedural requirements for 
shipbuilding investigations mirror those for antidumping 
investigations. Accordingly, antidumping procedural 
requirements have been repeated in H.R. 2754, as amended, 
making only those changes necessitated by the differences 
between the WTO antidumping agreement and the Shipbuilding 
Agreement.

             n. Section 861 of New Title VIII: Definitions

Present law: Title VII

    Industry: Section 771(4) defines ``industry'' as the 
producers as a whole of a domestic like product, or those 
producers whose collective output of a domestic like product 
constitutes a major proportion of the total domestic production 
of the product.
    Buyer, U.S. buyer: Title VII does not contain a definition 
of buyer .
    Commerce may determine that a lease is equivalent to a sale 
under section 771(19) after considering the terms of the lease, 
commercial practice within the industry, the circumstances of 
the transaction, whether the product subject to the lease is 
integrated into the operations of the lessee or importer, 
whether in practice there is a likelihood that the lease will 
be continued or renewed for a significant period of time, and 
other relevant factors, including whether the lease transaction 
would permit avoidance of antidumping or countervailing duties.
    Product subject to investigation: Section 771(16) provides 
that a subject product may be from any country, even if it is 
not a WTO member, as long as the product is imported into the 
United States.
    Domestic like product: Section 771(10) defines a ``domestic 
like product'' as a product which is like, or in the absence of 
like, most similar in characteristics and uses with, the 
article subject to investigation. The ITC generally applies a 
six-factor test in determining like product, examining physical 
characteristics and uses, interchangeability, channels of 
distribution, customer and producer perceptions, common 
manufacturing facilities, production processes and production 
employees, and, where appropriate, price. Timken Co. v. United 
States, Slip op. 96-8 at 9 (Ct. Int'l Trade, Jan. 3, 1996).
    Material injury: Section 771(7) defines ``material injury'' 
as harm that is not inconsequential, immaterial, or 
unimportant. In making its determination, the ITC is required 
under section 771(7)(B) to consider the volume of imports of 
the subject merchandise, the effect of imports of that 
merchandise on prices in the United States for like products, 
and the impact of imports of such merchandise on domestic 
producers of like products.
    In evaluating the volume of imports, section 771(7)(C)(i) 
requires the ITC to consider whether the volume of imports, or 
any increase in that volume, either in absolute terms or 
relative to production or consumption in the United States is 
significant.
    In evaluating the effect of imports on prices, section 
771(7)(C)(ii) specifies that the ITC consider whether there has 
been significant underselling by the imported merchandise as 
compared with prices of like products in the Untied States and 
whether the effect of imports otherwise depresses prices to a 
significant degree or prevents price increases, which otherwise 
would have occurred, to a significant degree.
    Finally, in evaluating the impact on the domestic industry, 
section 771(7)(C)(iii) requires evaluation of all relevant 
economic factors having a bearing on the state of the U.S. 
industry, including actual and potential decline in output, 
sales, market share, profits, productivity, return on 
investments, and utilization of capacity; factors affecting 
domestic prices; actual and potential negative effects on cash 
flow, inventories, employment, wages, growth, ability to raise 
capital, and investment; actual and potential negative effects 
on the existing development and production efforts of the 
domestic industry; and the magnitude of the dumping margin. All 
factors are to be evaluated within the context of the business 
cycle and conditions of competition that are distinctive to the 
domestic industry.
    Threat: Section 771(7)(F) specifies that in determining 
whether a U.S industry is threatened with material injury by 
reason of imports, the ITC is to consider, among other relevant 
economic factors, any existing unused production capacity or 
imminent, substantial increase in production capacity in the 
exporting country indicating the likelihood of substantially 
increased imports of the subject merchandise, taking into 
account the availability of other export markets to absorb any 
additional exports; a significant rate of increase of the 
volume or market penetration of imports of the subject 
merchandise indicating the likelihood of substantially 
increased imports; whether imports of the subject merchandise 
are entering at prices that are likely to have a significant 
depressing or suppressing effect on domestic prices, and are 
likely to increase demand for further imports; inventories of 
the subject merchandise; the potential for product shifting; 
the actual and potential negative effects on the existing 
development and production efforts of the domestic industry; 
and any other demonstrable adverse trends that indicate the 
probability that there is likely to be material injury by 
reason of imports of subject merchandise.
    Cumulation: Under section 771(7)(G), the ITC is required, 
subject to certain exceptions, to cumulatively assess the 
volume and effect of imports of the subject merchandise from 
all foreign countries with respect to which petitions were 
filed on the same day, investigations were self-initiated on 
the same day, or petitions were filed and investigations were 
self-initiated on the same day, if such imports compete with 
each other and with domestic like products in the U.S. market. 
In each final determination in which it cumulatively assesses 
the effects of sales, the ITC is required to make its 
determinations based on the record compiled in the first 
investigation in which it makes a final determination, with 
certain specified exceptions.
    Interested party: Section 771(9) defines ``interested 
party'' as the foreign manufacturer, producer, or exporter, or 
the U.S. importer of subject merchandise or a trade or business 
association a majority of whose members are producers, 
exporters, or importers of the subject merchandise; the 
government of the country in which such merchandise is produced 
or manufactured or from which such merchandise is exported; a 
manufacturer, producer, or wholesaler in the United States of a 
domestic like product; a certified union or recognized union or 
group of workers which is representative of an industry engaged 
in the manufacture, production, or wholesale in the United 
States of a domestic like product; a trade or business 
association a majority of whose members manufacture, produce, 
or wholesale a domestic like product in the United States; and 
an association a majority of whose members is composed of 
interested parties listed above.

Explanation of provision

    Industry, Producer: Section 861(4) defines ``industry'' as 
the producers as a whole of a domestic like vessel, or those 
producers whose collective capability to produce a domestic 
like vessel constitutes a major proportion of the total 
domestic capability to produce a like vessel. A ``producer'' is 
defined as an entity that is producing the domestic like vessel 
and an entity with the capability to produce the domestic like 
vessel. ``Capability to produce'' is further defined as the 
capability of a producer to produce a domestic like vessel with 
its present facilities or by adapting its facilities in a 
timely manner.
    Buyer, U.S. buyer: Section 801(a)(1) requires that a vessel 
be sold directly or indirectly to a U.S. buyer for an 
investigation to be commenced.
    Section 861(5) defines a ``buyer'' as any person who 
acquires an ownership interest in a vessel, including by lease 
or long-term bareboat charter, in conjunction with the original 
transfer from the producer, either directly or indirectly. 
Section 861(7) defines ownership interest as including any 
contractual or proprietary interest allowing the beneficiary to 
take advantage of the operation of a vessel in a manner 
substantially comparable to the owner. Section 861(6) defines a 
U.S. buyer as a buyer that is a U.S. citizen, a juridical 
entity organized under the laws of the United States, or 
another juridical entity owned or controlled by such a 
juridical entity or U.S. citizen. ``Owned'' is defined as 
having more than a 50 percent interest. ``Control'' is defined 
as the actual ability to have substantial influence on 
corporate behavior, presumed to exist where there is at least a 
25 percent interest.
    Vessel subject to investigation: Section 861(8) defines 
``vessel'' as a self-propelled seagoing vessel of 100 gross 
tons or more used for transportation of goods or persons or for 
performance of a specialized service and a tug of 365 kilowatts 
or more, as long as it is produced in a Shipbuilding Agreement 
Party or in a country that is neither a Shipbuilding Agreement 
Party nor a WTO member. Accordingly, respondents to injurious 
pricing cases must be from countries that are parties to 
Agreement or from non-parties who are not WTO Members.
    Like vessel: Section 861(9) defines a ``like vessel'' as a 
vessel of the same type, purpose, and approximate size as the 
subject vessel and possessing characteristics closely 
resembling those of the subject vessel.
    Material injury: Section 861(16) defines ``material 
injury'' as harm that is not inconsequential, immaterial, or 
unimportant. In making its determination, the ITC would be 
required under section 861(16)(B) to consider the sale of the 
subject vessel, the effect of the sale of the subject vessel on 
prices in the United States for a domestic like vessel, and the 
impact of the sale of the subject vessel on domestic producers 
of the domestic like vessel.
    In evaluating the sale of the subject vessel, section 
861(16)(C)(i) would require the ITC to consider whether the 
sale, either in absolute terms or relative to production or 
demand in the United States, in terms of either volume or 
value, is or has been significant.
    In evaluating the effect of the sale of the subject vessel 
on prices, section 861(16)(C)(ii) specifies that the ITC 
consider whether there has been significant underselling of the 
subject vessel as compared with the price of a domestic like 
vessel and whether the effect of the sale otherwise depresses 
or has depressed prices to a significant degree or prevents or 
has prevented price increases, which otherwise would have 
occurred, to a significant degree.
    Finally, in evaluating the impact on the domestic industry, 
section 861(16)(C)(iii) requires evaluation of all relevant 
economic factors having a bearing on the state of the U.S. 
industry, including actual and potential decline in output, 
sales, market share, profits, productivity, return on 
investments, and utilization of capacity; factors affecting 
domestic prices; actual and potential negative effects on cash 
flow, employment, wages, growth, ability to raise capital, and 
investment; actual and potential negative effects on the 
existing development and production efforts of the domestic 
industry; and the magnitude of the injurious pricing margin. 
All factors are to be evaluated within the context of the 
business cycle and conditions of competition that are 
distinctive to the domestic industry.
    Threat: Section 861(16)(E) specifies that in determining 
whether a U.S industry is threatened with material injury by 
reason of the sale of the subject vessel, the ITC is to 
consider, among other relevant economic factors, any existing 
unused production capacity or imminent, substantial increase in 
production capacity in the exporting country indicating the 
likelihood of substantially increased sales of a foreign like 
vessel to U.S. buyers, taking into account the availability of 
other export markets to absorb any additional exports; whether 
the sale of a foreign like vessel or other factors indicate the 
likelihood of significant additional sales to U.S. buyers; 
whether the sale of the subject vessel or sale of a foreign 
like vessel by the foreign producer is at a price that is 
likely to have a significant depressing or suppressing effect 
on domestic prices, and is likely to increase demand for 
further sales; the potential for product shifting; the actual 
and potential negative effects on the existing development and 
production efforts of the domestic industry; and any other 
demonstrable adverse trends that indicate the probability that 
there is likely to be material injury by reason of the sale of 
the subject vessel.
    Cumulation: Under section 861(16)(F), the ITC would be 
required, subject to certain exceptions, to cumulatively assess 
the effects of sales of foreign like vessels from all foreign 
producers with respect to which petitions were filed on the 
same day, investigations were self-initiated on the same day, 
or petitions were filed and investigations were self-initiated 
on the same day, if, with respect to such vessels, the foreign 
producers compete with each other and with producers of a 
domestic like vessel in the U.S. market. In each final 
determination in which it cumulatively assesses the effects of 
sales, the ITC may, but is not required to, make its 
determinations based on the record compiled in the first 
investigation in which it makes a final determination.
    Interested party: Section 861(17) defines ``interested 
party'' as the foreign producer, seller (other than the foreign 
producer), and the U.S. buyer of the subject vessel or a trade 
or business association a majority of whose members are the 
foreign producer, seller, or U.S. buyer of the subject vessel; 
the government of the country in which the subject vessel is 
produced or manufactured; a producer that is a member of an 
industry; a certified union or recognized union or group of 
workers which is representative of an industry; a trade or 
business association a majority of whose members are producers 
in an industry; and an association a majority of whose members 
are composed of interested parties listed above. In addition, 
an interested party would include, for purposes of section 807 
(permitting the imposition of countermeasures), a purchaser 
who, after the effective date of an order imposing 
countermeasures, entered into a contract of sale with the 
foreign producer that is subject to the order.

Reason for difference

    Industry, Producer: As discussed above with respect to 
section 802 of Title VIII, because vessels are generally unique 
and made to specifications, a domestic producer may not have 
produced a like vessel but could still be injured by the sale 
because that producer was capable of producing a like vessel. 
Accordingly, the definition of ``industry'' and ``producer'' in 
Title VIII would not require that the party actually produce a 
like vessel in order to be considered a producer or part of the 
industry. However, for Title VII investigations, the Committee 
does not intend to weaken the requirement that domestic 
producers actually produce or manufacture the like product 
(except in the case of material retardation).
    Buyer, U.S. buyer: However, because ocean-going vessels are 
technically not imported or entered for consumption in the 
United States, the Agreement and the implementing bill permit 
investigations to be commenced only when a vessel is sold 
directly or indirectly to a U.S. buyer, regardless of whether 
the vessel enters the United States.
    In addition, Title VIII contains a more detailed definition 
of ownership interest because of the complex nature of 
transactions involving ships, such as leases or long-term 
bareboat charters, in keeping with the requirements of the 
Agreement.
    Vessel/product subject to investigation: There is a major 
difference between Title VII and Title VIII concerning who may 
be a respondent. Title VII provides that a respondent may be 
from any country as long as product imported into the United 
States, even if it is not a WTO Member. Under Title VIII, on 
the other hand, respondents must be from countries that are 
parties to Agreement or from non-parties who are not WTO 
Members. Accordingly, if a producer is from a country that is a 
member of the WTO but is not a member of the Shipbuilding 
Agreement, the Title VIII remedy may not be utilized. This 
distinction is made out of concern that the United States might 
be challenged for violating its WTO obligations by taking 
action against a WTO member that agreed to be bound only by the 
provisions of the WTO agreement and had not consented to any 
further remedy under the Shipbuilding Agreement.
    Like vessel: The definition of ``like product'' in Title 
VII is comparable to that of ``like vessel'' in Title VIII. The 
Committee recognizes that ocean-going vessels are frequently 
built to unique specifications. Accordingly, the Committee 
intends that under the appropriate circumstances, there may be 
small differences in size and equipment between like vessels.
    Material injury: Except as noted below, the ``material 
injury'' definition of Title VIII is intended to be similar to 
that of Title VII, eliminating or modifying certain injury 
criteria to take into account the nature of the shipbuilding 
industry and the Agreement's requirements.
    Under Title VII, the ITC is to consider the volume of 
subject imports in determining whether the industry has been 
materially injured. In determining material injury in a Title 
VIII investigation, the ITC would be required to consider 
whether the sale has been significant. The Committee intends 
that in the appropriate circumstances, only one sale may be 
sufficient to satisfy this requirement under Title VIII, 
whereas it would be an unusual case in which a single sale was 
a significant volume under Title VII. In addition, the 
Committee intends consideration of the ``sale'' to include both 
the number of sales and the tonnage and value represented by 
that sale or sales, as appropriate.
    As discussed above concerning section 801, a Title VIII 
injury investigation is retrospective because the focus is on 
the vessel under investigation and not subsequently sold 
vessels. Accordingly, the material injury provision under Title 
VIII is drafted to permit consideration of whether the subject 
vessel has caused price depression or suppression. However, the 
Committee intends that the present material injury requirement 
of Title VII remain unchanged. In addition, the Committee 
intends under Title VIII the ITC must find that injury has been 
by reason of the vessel under investigation in order to reach 
an affirmative determination.
    Threat: Except as noted below, the ``threat'' definition of 
Title VIII is intended to be similar to that of Title VII, 
eliminating or modifying certain criteria to take into account 
the nature of the shipbuilding industry and the Agreement's 
requirements.
    The Committee notes that although Title VIII makes 
reference to ``substantially increased sales'' in the threat 
section as in Title VII, the number of vessels or increase in 
production capacity may, in the appropriate circumstances, 
satisfy the Title VIII criterion even though it would not be 
sufficient in most cases under Title VII. The Committee further 
intends consideration of ``sale'' to include the number of 
sales and the tonnage and value represented by that sale or 
sales.
    Cumulation: The rules concerning the types of 
investigations that must be cumulated under Title VII and Title 
VIII are intended to be the same. The only difference concerns 
the use, in final determinations in which the ITC performs a 
cumulative analysis, of the record compiled in the first 
investigation in which it makes a final determination. In Title 
VII cases, the ITC is required to use such a record. However, 
in Title VIII investigations, the ITC may but would not be 
required to use this record. The reason for the difference is 
that some Title VIII investigations may be delayed for long 
periods of time in order to obtain cost of production 
information, and use of the record in the first investigation 
may, therefore, not be appropriate.
    Interested party: The definitions of ``interested party'' 
for Title VII and Title VIII are comparable, except that Title 
VIII would permit a purchaser to be an interested party in 
countermeasure proceedings if, after the effective date of an 
order imposing countermeasures, it entered into a contract of 
sale with the foreign producer that is subject to the order. 
Giving such parties interested party status would permit them 
to participate in proceedings before the Commerce Department in 
which the scope and duration of countermeasures is being 
determined.

             2. SECTION 102: ENFORCEMENT OF COUNTERMEASURES

Present law

    Current law does not provide for the imposition of 
countermeasures in the antidumping context.

Explanation of provision

    Section 102 would amend Title IV of the Tariff Act of 1930 
to provide the Customs Service with the authority to deny any 
request for a permit to lade or unlade passengers, merchandise, 
or baggage from or onto vessels listed by Commerce as being 
subject to countermeasures. Section 102 provides for certain 
limited exceptions to this rule.

Reason for change

    Because the antidumping law permits the assessment of an 
antidumping duty on future entries of merchandise subject to 
order, additional enforcement mechanisms are not necessary. 
Unlike the WTO antidumping agreement, the Shipbuilding 
Agreement specifically provides for the imposition of 
countermeasures if the foreign shipyard in question does not 
pay the injurious pricing charge assessed against it. Section 
102 is intended to implement this provision.

3. SECTION 103: JUDICIAL REVIEW IN INJURIOUS PRICING AND COUNTERMEASURE 
                              PROCEEDINGS

Present law: Title VII

    Section 516A of the Tariff Act of 1930 provides that 
interested parties dissatisfied with certain preliminary and 
final determinations may challenge them before the Court of 
International Trade. The standard of review for final 
determinations is whether the determination is unsupported by 
substantial evidence on the record or is otherwise not in 
accordance with law. The standard of review for the limited 
preliminary determinations that are subject to review is 
whether the determination is arbitrary, capricious, and an 
abuse of discretion or is otherwise not in accordance with law.

Explanation of provision

    As under Title VII, section 103 provides that interested 
parties dissatisfied with final determinations may challenge 
them before the Court of International Trade, and the 
applicable standard of review is whether the determination is 
``unsupported by substantial evidence on the record, or 
otherwise not in accordance with law.'' In addition, certain 
preliminary determinations and countermeasure determinations 
may be challenged, and the standard of review is whether 
determination is ``arbitrary, capricious, an abuse of 
discretion, or otherwise not in accordance with law.''

Reason for change

    The Committee intends that H.R. 2754, as amended, provide 
essentially analogous opportunities for judicial review as 
under Title VII. The differences between Title VII and H.R. 
2754, as amended, are intended to take into account the 
differences in the two types of investigations, especially the 
imposition of countermeasures that would permitted in Title 
VIII and the absence of comparable administrative and sunset 
reviews.

                     B. Title II: Other Provisions

            1. SECTION 201: EQUIPMENT AND REPAIR OF VESSELS

Present law

    Section 466 of the Tariff Act of 1930 imposes a 50 percent 
duty on repairs to U.S.-flag vessels made outside the United 
States.

Explanation of provision

    Section 201 would amend section 466 of the Tariff Act of 
1930 to eliminate the current 50 percent duty on repairs to 
covered U.S.-flag vessels made outside the United States but 
only if such repairs are made in an Agreement Party.

Reason for change

    The Shipbuilding Agreement no longer permits the collection 
of duties on vessel repairs made in a signatory to the 
Agreement. Accordingly, U.S. law must be changed to eliminate 
the duty if the repairs to a U.S.-flag vessel were made in a 
signatory to the Agreement. However, the duty would remain in 
place if the repairs were made in a country other than an 
Agreement signatory.

  2. SECTION 202: EFFECT OF AGREEMENT WITH RESPECT TO PRIVATE REMEDIES

Present law

    A number of implementing bills, such as section 102(c) of 
the Uruguay Round Agreements Act (P.L. 103-465) and section 
102(c) of the North American Free Trade Agreement 
Implementation Act (P.L. 103-182), provide that no person other 
than the United States is to have a cause of action or defense 
under the agreement in question or may challenge government 
action or inaction on the ground that it is inconsistent with 
the agreement.

Explanation of provision

    Section 202 provides that no person other than the United 
States is to have a cause of action or defense under the 
Agreement or may challenge government action or inaction on the 
ground that it is inconsistent with the Agreement.

Reason for change

    The Committee intends that section 202 provide the same 
limitations as in the Uruguay Round Agreements Act and the 
North American Free Trade Agreement Implementation Act.

                3. SECTION 203: IMPLEMENTING REGULATIONS

Present law

    No applicable provision.

Explanation of provision

    Section 203 provides that the relevant agencies may issue 
regulations as may be necessary to ensure that the Act is 
appropriately implemented on the date that the Agreement enters 
into force with respect to the United States.

Reason for change

    The Committee intends that the relevant agencies take steps 
to ensure through regulation that the Act is appropriately 
implemented upon entry into force. With respect to injurious 
pricing, the Committee expects that regulations would be 
modeled after the regulations implementing Title VII of the 
Tariff Act of 1930 wherever possible, making only those changes 
necessitated by the differences between H.R. 2754, as amended, 
and existing law.

                      C. Title III: Revenue Offset

1. SECTION 301: PENALTY FOR FAILURE TO FILE DISCLOSURE OF EXEMPTION FOR 
                   SHIPPING INCOME OF FOREIGN PERSONS

Present law

    The United States imposes a 4-percent tax on the U.S.-
source gross transportation income of nonresident alien 
individuals and foreign corporations (sec. 887). This tax does 
not apply to income that is effectively connected with the 
foreign person's conduct of a U.S. trade or business. 
Nonresident alien individuals and foreign corporations are 
subject to U.S. tax at regular graduated rates on net income 
that is effectively connected with a U.S. trade or business 
(secs. 871(b) and 882). The U.S. taxation of a nonresident 
alien or foreign corporation may be altered by the provisions 
of an applicable tax treaty.
    Transportation income is any income derived from, or in 
connection with, the use (or hiring or leasing for use) of a 
vessel or aircraft (or a container used in connection 
therewith) or the performance of services directly related to 
such use (sec. 863(c)(3)). Transportation income attributable 
to transportation that begins and ends in the United States is 
treated as derived from sources in the United States (sec. 
863(c)(1)). In the case of transportation income attributable 
to transportation that begins in, and ends outside, the United 
States or that begins outside, and ends in, the United States, 
generally 50 percent is treated as U.S. source and 50 percent 
is treated as foreign source (sec. 863(c)(2)). U.S.-source 
transportation income is treated as effectively connected with 
a foreign person's conduct of a U.S. trade or business only if 
the foreign person has a fixed place of business in the United 
States that is involved in the earning of such income and 
substantially all of such income of the foreign person is 
attributable to regularly scheduled transportation (sec. 
887(b)(4)).
    An exemption from U.S. tax is provided for gross income 
derived by a nonresident alien individual from the 
international operation of a ship, provided that the foreign 
country in which such individual is resident grants an 
equivalent exemption to individual residents of the United 
States (sec. 872(b)(1)). A similar exemption from U.S. tax is 
provided for gross income derived by a foreign corporation from 
the international operation of a ship, provided that the 
foreign country in which the corporation is organized grants an 
equivalent exemption to corporations organized in the United 
States (sec. 883(a)(1)).
    Pursuant to guidance published by the Internal Revenue 
Service, a nonresident alien individual or foreign corporation 
that is entitled to an exemption from U.S. tax for its income 
from the international operation of a ship must file a U.S. 
income tax return and must attach to such return a statement 
claiming the exemption (Rev. Proc. 91-12, 1991-1 C.B. 473). If 
the foreign person is claiming an exemption based on an 
applicable income tax treaty, the foreign person must disclose 
that fact as required by the Secretary of the Treasury (sec. 
6114). The penalty for failure to make disclosure of a treaty-
based position as required under section 6114 is $1,000 for an 
individual and $10,000 for a corporation (sec. 6712).
    At the time the 4-percent tax on U.S.-source gross 
transportation income was enacted, concern was expressed about 
whether compliance with the tax, which is collected by return, 
would be adequate. It was intended that the tax-writing 
committees of Congress and the Secretary of the Treasury would 
study the issue of compliance and that the Secretary would make 
recommendations if compliance did not prove adequate. Joint 
Committee on Taxation, ``General Explanation of the Tax Reform 
Act of 1986'' (JCS-10-87), May 4, 1987, at 930.

Explanation of provision

    Under the provision, a nonresident alien individual or 
foreign corporation that claims exemption from U.S. tax for 
income from the international operation of ships but does not 
satisfy the filing requirements for claiming such exemption is 
subject to the penalty of the denial of such exemption and any 
deductions or credits otherwise allowable in determining the 
U.S. tax liability with respect to such income. In addition, 
under the provision, if a nonresident alien individual or 
foreign corporation that has a fixed placed of business in the 
United States fails to satisfy the filing requirements for 
claiming an exemption from U.S. tax for its income from the 
international operation of ships, such person is subject to the 
additional penalty that any foreign source income from the 
international operation of ships that is attributable to such 
fixed place of business is treated as effectively connected 
with the conduct of a U.S. trade or business. Income that is so 
treated as effectively connected with a U.S. business is 
subject to U.S. tax at graduated rates (and is subject to the 
disallowance of deductions and credits described above). The 
Secretary of the Treasury may waive all or part of these 
penalties upon a showing by the foreign person that there was 
reasonable cause for the failure and the person acted in good 
faith. The provision does not apply to the extent the 
application would be contrary to any treaty obligation of the 
United States.
    The provision also provides that the U.S. Customs Service 
will provide to the Secretary of the Treasury the information 
specified by the Secretary to enable the Secretary to identify 
foreign-flag ships engaged in shipping to or from the United 
States.

Reason for change

    The Committee believes that it is appropriate to impose 
significant penalties for a failure to satisfy the filing 
requirements for claiming the exemption from U.S. tax that is 
available to certain foreign persons with respect to income 
from the international operation of ships.

Effective date

    The provision is effective for taxable years beginning 
after the later of the date the Shipbuilding Agreement takes 
effect or December 31, 1996.

                       III. VOTE OF THE COMMITTEE

    In compliance with clause 2(l)(2)(B) of rule XI of the 
Rules of the House of Representatives, the following statement 
is made relative to the vote of the Committee in reporting the 
bill, H.R. 2754.
    Motion to report the bill
    The bill, H.R. 2754, as amended, was ordered favorably 
reported on March 21, 1996, by a roll call vote of 27 yeas to 4 
nays, with a quorum present. The vote was as follows:

                                                                                                                
----------------------------------------------------------------------------------------------------------------
             Representatives                 Yea      Nay            Representatives             Yea       Nay  
----------------------------------------------------------------------------------------------------------------
Mr. Archer..............................        X   .......  Mr. Gibbons....................        X   ........
Mr. Crane...............................        X   .......  Mr. Rangel.....................        X   ........
Mr. Thomas..............................  ........  .......  Mr. Stark......................  ........  ........
Mr. Shaw................................        X   .......  Mr. Jacobs.....................        X   ........
Mrs. Johnson............................        X   .......  Mr. Ford.......................        X   ........
Mr. Bunning.............................        X   .......  Mr. Matsui.....................  ........  ........
Mr. Houghton............................        X   .......  Mrs. Kennelly..................        X   ........
Mr. Herger..............................        X   .......  Mr. Coyne......................  ........  ........
Mr. McCrery.............................        X   .......  Mr. Levin......................        X   ........
Mr. Hancock.............................        X   .......  Mr. Cardin.....................        X   ........
Mr. Camp................................        X   .......  Mr. McDermott..................  ........  ........
Mr. Ramstad.............................        X   .......  Mr. Kleczka....................  ........        X 
Mr. Zimmer..............................        X   .......  Mr. Lewis......................  ........  ........
Mr. Nussle..............................        X   .......  Mr. Payne......................  ........        X 
Mr. Johnson.............................        X   .......  Mr. Neal.......................  ........        X 
Ms. Dunn................................  ........  .......  Mr. McNulty....................  ........        X 
Mr. Collins.............................        X   .......  ...............................  ........  ........
Mr. Portman.............................        X   .......  ...............................  ........  ........
Mr. Hayes...............................        X   .......  ...............................  ........  ........
Mr. Laughlin............................  ........  .......  ...............................  ........  ........
Mr. English.............................        X   .......  ...............................  ........  ........
Mr. Ensign..............................        X   .......  ...............................  ........  ........
Mr. Christensen.........................        X   .......  ...............................  ........  ........
----------------------------------------------------------------------------------------------------------------

    On this vote, Ms. Dunn was unavoidably delayed; had she 
been present, she would have voted aye.

                     IV. BUDGET EFFECTS OF THE BILL

               A. Committee Estimate of Budgetary Effect

    In compliance with clause 7(a) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of the bill, H.R. 2754, as 
reported.
    The bill, as amended, is estimated to have the following 
effects on the budget for fiscal years 1996-2002:

 ESTIMATED REVENUE EFFECTS OF AN AMENDMENT IN THE NATURE OF A SUBSTITUTE FOR H.R. 2754, THE ``SHIPBUILDING TRADE AGREEMENT ACT'' SCHEDULED FOR WAYS AND 
                                            MEANS MARKUP ON THURSDAY, MARCH 21, 1996; FISCAL YEARS 1996-2002                                            
                                                                [In millions of dollars]                                                                
--------------------------------------------------------------------------------------------------------------------------------------------------------
                            Provision                              Effective   1996    1997    1998    1999    2000    2001    2002    1996-00   1996-02
--------------------------------------------------------------------------------------------------------------------------------------------------------
1. H.R. 2754\1\.................................................      (\2\)       -2     -10     -12      -7      -4      -9      -6       -35       -50
2. Shipping income reporting, with potential exemption denial                                                                                           
 and resourcing.................................................      (\3\)   ......       3       6      12      15      15      14        36        65
                                                                 ---------------------------------------------------------------------------------------
      Net totals................................................  ..........      -2      -7      -6       5      11       6       8         1        15
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note. Details may not add to totals due to rounding.                                                                                                    
                                                                                                                                                        
\1\ Estimate provided by the Congressional Budget Office.                                                                                               
\2\ Assumed to be effective 7/15/96.                                                                                                                    
\3\ Effective years beginning after the later of the date H.R. 2754 takes effect or 12/31/96.                                                           

    B. Statement Regarding New Budget Authority and Tax Expenditures

    In compliance with clause 2(l)(3)(B) of rule XI of the 
Rules of the House of Representatives, the Committee states 
that the bill does not provide new budget, spending, or credit 
authority. Section 201 of the bill provides for a decrease in 
revenues, but this decrease is offset by revenue gains in 
section 301.

      C. Cost Estimate Prepared by the Congressional Budget Office

    Pursuant to clause 2(l)(3)(C) of rule XI of the Rules of 
the House of Representatives requiring a cost estimate prepared 
by the Congressional Budget Office (CBO), the following report 
by CBO is provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 26, 1996.
Hon. Bill Archer,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
reviewed H.R. 2754, the Shipbuilding Trade Agreement Act, as 
amended and ordered reported by the Committee on Ways and Means 
on March 21, 1996. CBO and JCT estimate that H.R. 2754 would 
decrease governmental receipts by $2 million in fiscal year 
1996 and increase governmental receipts by $15 million over 
fiscal years 1996-2002. H.R. 2754 contains no private sector or 
intergovernmental mandates as defined in Public Law 104-4 and 
would impose no direct costs on state, local, or tribal 
governments.
    The OECD Shipbuilding Trade Agreement was signed on 
December 21, 1994, by the following countries: The Commission 
of the European Communities including the United Kingdom, 
Germany, France, Italy, Spain, Ireland, the Netherlands, 
Belgium, Luxembourg, Greece, Portugal, Denmark, Austria, Sweden 
and Finland; Japan; South Korea; Norway; and the United States. 
Under current law (19 USC 1466), US flag vessels are subject to 
a 50 percent ad valorem duty on the cost of equipment and 
nonemergency repairs obtained in foreign countries. As mandated 
by the OECD agreement, section 201 of the proposed legislation 
would partially repeal the duty by exempting repairs to US flag 
vessels done in OECD signatory countries.
    CBO estimates that section 201 of the bill, pertaining to 
vessel repair duties, would decrease governmental receipts by 
$2 million in fiscal year 1996 and by $50 million over the 
fiscal years 1996-2002, net of payroll and income tax offsets. 
The estimate of revenue loss is based on the historical 
collections. Over the past several years, collections have been 
between $15 million and $25 million annually. According to the 
US Maritime Administration (MARAD), in December 1995 there were 
141 vessels in the US flag fleet. However, MARAD predicts a 
steady decline in the size of the US fleet due to the impending 
expiration and expected termination of the operating-
differential subsidy program, through which payments are made 
to US vessels on specified trade routes. This estimate assumes 
that future collections of the vessel repair duty would decline 
as a result of this reduction in the size of the fleet.
    Currently about half of all repairs on US vessels in 
foreign ports are performed in OECD signatory countries. If 
section 201 of the bill is enacted, CBO assumes that additional 
US vessel repairs would be diverted to ports in OECD countries 
to take advantage of the duty-free repair treatment. This 
estimate assumes that this provision will be effective on July 
15, 1996.
    Section 301 of the bill expands penalties for failure to 
satisfy the filing requirements for claiming the exemption from 
US tax that is available to certain foreign persons with 
respect to income from international operation of ships. The 
Joint Committee on Taxation estimates that this provision would 
increase governmental receipts by $3 million in fiscal year 
1997 and by $65 million over fiscal years 1996-2002. CBO 
concurs with this estimate.

                                          REVENUE EFFECTS OF H.R. 2754                                          
                                    [By fiscal year, in billions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                        1996       1997       1998       1999       2000       2001       2002  
----------------------------------------------------------------------------------------------------------------
Projected revenues under current                                                                                
 law \1\...........................   1417.581   1475.165   1546.076   1617.969   1697.155   1786.356   1879.335
Proposed changes:                                                                                               
    Section 201....................     -0.002     -0.010     -0.012     -0.007     -0.004     -0.009     -0.006
    Section 301....................      0.000      0.003      0.006      0.012      0.015      0.015      0.014
                                    ----------------------------------------------------------------------------
      Total........................     -0.002     -0.007     -0.006      0.005      0.011      0.006      0.008
Projected revenues under H.R. 2754.   1417.579   1475.158   1546.070   1617.974   1697.166   1786.362   1879.343
----------------------------------------------------------------------------------------------------------------
\1\ Includes the revenue effects of P.L. 104-7 (H.R. 831), and P.L. 104-117 (H.R. 2778).                        

    Section 252 of the Balanced Budget and Emergency Deficit 
Control Act of 1985 sets up pay-as-you-go procedures for 
legislation affecting receipts or direct spending through 1998. 
Because this bill would affect receipts, pay-as-you-go 
procedures would apply. These effects are summarized in the 
table below.

                                          PAY-AS-YOU-GO CONSIDERATIONS                                          
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                                                     1996             1997             1998     
----------------------------------------------------------------------------------------------------------------
Changes in receipts..........................................              -2               -7               -6 
Changes in outlays...........................................                                                   
(2) Not Applicable                                                                                              
----------------------------------------------------------------------------------------------------------------

    If you would like further details, please feel free to 
contact me or your staff may wish to contact Stephanie Weiner.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).

 V. OTHER MATTERS REQUIRED TO BE DISCUSSED UNDER THE RULES OF THE HOUSE

          A. Committee Oversight Findings and Recommendations

    With respect to subdivision (A) of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives (relating to 
oversight findings), the Committee advises that it was as a 
result of the Committee's oversight activities concerning 
customs and tariff matters, import trade matters, specific 
trade-related problems, revenue matters, and the Internal 
Revenue Code that the Committee concluded that it was 
appropriate to enact the provisions contained in the bill.

    B. Summary of Findings and Recommendations of the Committee on 
                    Government Reform and Oversight

    With respect to subdivision (D) of clause 2(l)(3) of rule 
XI of the Rules of the House of Representatives (relating to 
oversight findings), the Committee advises that no oversight 
findings or recommendations have been submitted to this 
Committee by the Committee on Government Reform and Oversight 
with respect to the provisions contained in this bill.

                    C. Inflationary Impact Statement

    In compliance with clause 2(l)(4) of rule XI of the Rules 
of the House of Representatives, the Committee states that the 
provisions of the bill are not expected to have an overall 
inflationary impact on prices and costs in the operation of the 
national economy.

        VI. CHANGES IN EXISTING LAW MADE BY THE BILL AS REPORTED

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italics, existing law in which no change is proposed 
is shown in roman):

                           TARIFF ACT OF 1930

          * * * * * * *

                  TITLE IV--ADMINISTRATIVE PROVISIONS

          * * * * * * *

      Part II--Report, Entry, and Unlading of Vessels and Vehicles

          * * * * * * *

SEC. 466. EQUIPMENT AND REPAIRS OF VESSELS

  (a)  * * *
          * * * * * * *
  (i) The duty imposed by subsection (a) shall not apply with 
respect to activities occurring in a Shipbuilding Agreement 
Party, as defined in section 861(22), with respect to--
          (1) self-propelled seagoing vessels of 100 gross tons 
        or more that are used for transportation of goods or 
        persons or for performance of a specialized service 
        (including, but not limited to, ice breakers and 
        dredges), and
          (2) tugs of 365 kilowatts or more.
A vessel shall be considered ``self-propelled seagoing'' if its 
permanent propulsion and steering provide it all the 
characteristics of self-navigability in the high seas.
          * * * * * * *

SEC. 468. SHIPBUILDING AGREEMENT COUNTERMEASURES.

  (a) In General.--Notwithstanding any other provision of law, 
upon receiving from the Secretary of Commerce a list of vessels 
subject to countermeasures under section 807, the Customs 
Service shall deny any request for a permit to lade or unlade 
passengers, merchandise, or baggage from or onto those vessels 
so listed.
  (b) Exceptions.--Subsection (a) shall not be applied to deny 
a permit for the following:
          (1) To unlade any United States citizen or permanent 
        legal resident alien from a vessel included in the list 
        described in subsection (a), or to unlade any refugee 
        or any alien who would otherwise be eligible to apply 
        for asylum and withholding of deportation under the 
        Immigration and Nationality Act.
          (2) To lade or unlade any crewmember of such vessel.
          (3) To lade or unlade coal and other fuel supplies 
        (for the operation of the listed vessel), ships' 
        stores, sea stores, and the legitimate equipment of 
        such vessel.
          (4) To lade or unlade supplies for the use or sale on 
        such vessel.
          (5) To lade or unlade such other merchandise, 
        baggage, or passenger as the Customs Service shall 
        determine necessary to protect the immediate health, 
        safety, or welfare of a human being.
  (c) Correction of Ministerial or Clerical Errors.--
          (1) Petition for correction.--If the master of any 
        vessel whose application for a permit to lade or unlade 
        has been denied under this section believes that such 
        denial resulted from a ministerial or clerical error, 
        not amounting to a mistake of law, committed by any 
        Customs officer, the master may petition the Customs 
        Service for correction of such error, as provided by 
        regulation.
          (2) Inapplicability of sections 514 and 520.--
        Notwithstanding paragraph (1), imposition of 
        countermeasures under this section shall not be deemed 
        an exclusion or other protestable decision under 
        section 514, and shall not be subject to correction 
        under section 520.
          (3) Petitions seeking administrative review.--Any 
        petition seeking administrative review of any matter 
        regarding the Secretary of Commerce's decision to list 
        a vessel under section 807 must be brought under that 
        section.
  (d) Penalties.--In addition to any other provision of law, 
the Customs Service may impose a civil penalty of not to exceed 
$10,000 against the master of any vessel--
          (1) who submits false information in requesting any 
        permit to lade or unlade; or
          (2) who attempts to, or actually does, lade or unlade 
        in violation of any denial of such permit under this 
        section.
          * * * * * * *

      Part III--Ascertainment, Collection, and Recovery of Duties

          * * * * * * *

SEC. 516B. JUDICIAL REVIEW IN INJURIOUS PRICING AND COUNTERMEASURE 
                    PROCEEDINGS.

  (a) Review of Determination.--
          (1) In general.--Within 30 days after the date of 
        publication in the Federal Register of--
                  (A)(i) a determination by the administering 
                authority under section 802(c) not to initiate 
                an investigation,
                  (ii) a negative determination by the 
                Commission under section 803(a) as to whether 
                there is or has been reasonable indication of 
                material injury, threat of material injury, or 
                material retardation,
                  (iii) a determination by the administering 
                authority to suspend or revoke an injurious 
                pricing order under section 806(d) or (e),
                  (iv) a determination by the administering 
                authority under section 807(c),
                  (v) a determination by the administering 
                authority in a review under section 807(d),
                  (vi) a determination by the administering 
                authority concerning whether to extend the 
                scope or duration of a countermeasure order 
                under section 807(e)(3)(B)(ii),
                  (vii) a determination by the administering 
                authority to amend a countermeasure order under 
                section 807(e)(6),
                  (viii) a determination by the administering 
                authority in a review under section 807(g),
                  (ix) a determination by the administering 
                authority under section 807(i) to terminate 
                proceedings, or to amend or revoke a 
                countermeasure order,
                  (x) a determination by the administering 
                authority under section 845(b), with respect to 
                a matter described in paragraph (1)(D) of that 
                section, or
                  (B)(i) an injurious pricing order based on a 
                determination described in subparagraph (A) of 
                paragraph (2),
                  (ii) notice of a determination described in 
                subparagraph (B) of paragraph (2),
                  (iii) notice of implementation of a 
                determination described in subparagraph (C) of 
                paragraph (2), or
                  (iv) notice of revocation of an injurious 
                pricing order based on a determination 
                described in subparagraph (D) of paragraph (2),
        an interested party who is a party to the proceeding in 
        connection with which the matter arises may commence an 
        action in the United States Court of International 
        Trade by filing concurrently a summons and complaint, 
        each with the content and in the form, manner, and 
        style prescribed by the rules of that court, contesting 
        any factual findings or legal conclusions upon which 
        the determination is based.
          (2) Reviewable determinations.--The determinations 
        referred to in paragraph (1)(B) are--
                  (A) a final affirmative determination by the 
                administering authority or by the Commission 
                under section 805, including any negative part 
                of such a determination (other than a part 
                referred to in subparagraph (B)),
                  (B) a final negative determination by the 
                administering authority or the Commission under 
                section 805,
                  (C) a determination by the administering 
                authority under section 845(b), with respect to 
                a matter described in paragraph (1)(A) of that 
                section, and
                  (D) a determination by the Commission under 
                section 845(a) that results in the revocation 
                of an injurious pricing order.
          (3) Exception.--Notwithstanding the 30-day limitation 
        imposed by paragraph (1) with regard to an order 
        described in paragraph (1)(B)(i), a final affirmative 
        determination by the administering authority under 
        section 805 may be contested by commencing an action, 
        in accordance with the provisions of paragraph (1), 
        within 30 days after the date of publication in the 
        Federal Register of a final negative determination by 
        the Commission under section 805.
          (4) Procedures and fees.--The procedures and fees set 
        forth in chapter 169 of title 28, United States Code, 
        apply to an action under this section.
  (b) Standards of Review.--
          (1) Remedy.--The court shall hold unlawful any 
        determination, finding, or conclusion found--
                  (A) in an action brought under subparagraph 
                (A) of subsection (a)(1), to be arbitrary, 
                capricious, an abuse of discretion, or 
                otherwise not in accordance with law, or
                  (B) in an action brought under subparagraph 
                (B) of subsection (a)(1), to be unsupported by 
                substantial evidence on the record, or 
                otherwise not in accordance with law.
          (2) Record for review.--
                  (A) In general.--For purposes of this 
                subsection, the record, unless otherwise 
                stipulated by the parties, shall consist of--
                          (i) a copy of all information 
                        presented to or obtained by the 
                        administering authority or the 
                        Commission during the course of the 
                        administrative proceeding, including 
                        all governmental memoranda pertaining 
                        to the case and the record of ex parte 
                        meetings required to be kept by section 
                        843(a)(2); and
                          (ii) a copy of the determination, all 
                        transcripts or records of conferences 
                        or hearings, and all notices published 
                        in the Federal Register.
                  (B) Confidential or privileged material.--The 
                confidential or privileged status accorded to 
                any documents, comments, or information shall 
                be preserved in any action under this section. 
                Notwithstanding the preceding sentence, the 
                court may examine, in camera, the confidential 
                or privileged material, and may disclose such 
                material under such terms and conditions as it 
                may order.
  (c) Standing.--Any interested party who was a party to the 
proceeding under title VIII shall have the right to appear and 
be heard as a party in interest before the United States Court 
of International Trade in an action under this section. The 
party filing the action shall notify all such interested 
parties of the filing of an action under this section, in the 
form, manner, and within the time prescribed by rules of the 
court.
  (d) Definitions.--For purposes of this section:
          (1) Administering authority.--The term 
        ``administering authority'' has the meaning given that 
        term in section 861(1).
          (2) Commission.--The term ``Commission'' means the 
        United States International Trade Commission.
          (3) Interested party.--The term ``interested party'' 
        means any person described in section 861(17).
          * * * * * * *

     TITLE VIII--INJURIOUS PRICING AND COUNTERMEASURES RELATING TO 
                              SHIPBUILDING

        Subtitle A--Injurious Pricing Charge and Countermeasures

    Sec. 801. Injurious pricing charge.
    Sec. 802. Procedures for initiating an injurious pricing 
              investigation.
    Sec. 803. Preliminary determinations.
    Sec. 804. Termination or suspension of investigation.
    Sec. 805. Final determinations.
    Sec. 806. Imposition and collection of injurious pricing charge.
    Sec. 807. Imposition of countermeasures.
    Sec. 808. Injurious pricing petitions by third countries.

                        Subtitle B--Special Rules

    Sec. 821. Export price.
    Sec. 822. Normal value.
    Sec. 823. Currency conversion.

                         Subtitle C--Procedures

    Sec. 841. Hearings.
    Sec. 842. Determinations on the basis of the facts available.
    Sec. 843. Access to information.
    Sec. 844. Conduct of investigations.
    Sec. 845. Administrative action following shipbuilding agreement 
              panel reports.

                         Subtitle D--Definitions

    Sec. 861. Definitions.

        Subtitle A--Injurious Pricing Charge and Countermeasures

SEC. 801. INJURIOUS PRICING CHARGE.

  (a) Basis for Charge.--If--
          (1) the administering authority determines that a 
        foreign vessel has been sold directly or indirectly to 
        one or more United States buyers at less than its fair 
        value, and
          (2) the Commission determines that--
                  (A) an industry in the United States--
                          (i) is or has been materially 
                        injured, or
                          (ii) is threatened with material 
                        injury, or
                  (B) the establishment of an industry in the 
                United States is or has been materially 
                retarded,
        by reason of the sale of such vessel, then there shall 
        be imposed upon the foreign producer of the subject 
        vessel an injurious pricing charge, in an amount equal 
        to the amount by which the normal value exceeds the 
        export price for the vessel. For purposes of this 
        subsection and section 805(b)(1), a reference to the 
        sale of a foreign vessel includes the creation or 
        transfer of an ownership interest in the vessel, except 
        for an ownership interest created or acquired solely 
        for the purpose of providing security for a normal 
        commercial loan.
  (b) Foreign Vessels Not Merchandise.--No foreign vessel may 
be considered to be, or to be part of, a class or kind of 
merchandise for purposes of subtitle B of title VII.

SEC. 802. PROCEDURES FOR INITIATING AN INJURIOUS PRICING INVESTIGATION.

  (a) Initiation by Administering Authority.--
          (1) General rule.--Except in the case in which 
        subsection (d)(6) applies, an injurious pricing 
        investigation shall be initiated whenever the 
        administering authority determines, from information 
        available to it, that a formal investigation is 
        warranted into the question of whether the elements 
        necessary for the imposition of a charge under section 
        801(a) exist, and whether a producer described in 
        section 861(17)(C) would meet the criteria of 
        subsection (b)(1)(B) for a petitioner.
          (2) Time for initiation by administering authority.--
        An investigation may only be initiated under paragraph 
        (1) within 6 months after the time the administering 
        authority first knew or should have known of the sale 
        of the vessel. Any period in which subsection (d)(6)(A) 
        applies shall not be included in calculating that 6-
        month period.
  (b) Initiation by Petition.--
          (1) Petition requirements.--(A) Except in a case in 
        which subsection (d)(6) applies, an injurious pricing 
        proceeding shall be initiated whenever an interested 
        party, as defined in subparagraph (C), (D), (E), or (F) 
        of section 861(17), files a petition with the 
        administering authority, on behalf of an industry, 
        which alleges the elements necessary for the imposition 
        of an injurious pricing charge under section 801(a) and 
        the elements required under subparagraph (B), (C), (D), 
        or (E) of this paragraph, and which is accompanied by 
        information reasonably available to the petitioner 
        supporting those allegations and identifying the 
        transaction concerned.
          (B)(i) If the petitioner is a producer described in 
        section 861(17)(C), and--
                  (I) if the vessel was sold through a broad 
                multiple bid, the petition shall include 
                information indicating that the petitioner was 
                invited to tender a bid on the contract at 
                issue, the petitioner actually did so, and the 
                bid of the petitioner substantially met the 
                delivery date and technical requirements of the 
                bid,
                  (II) if the vessel was sold through any 
                bidding process other than a broad multiple bid 
                and the petitioner was invited to tender a bid 
                on the contract at issue, the petition shall 
                include information indicating that the 
                petitioner actually did so and the bid of the 
                petitioner substantially met the delivery date 
                and technical requirements of the bid, or
                  (III) except in a case in which the vessel 
                was sold through a broad multiple bid, if there 
                is no invitation to tender a bid, the petition 
                shall include information indicating that the 
                petitioner was capable of building the vessel 
                concerned and, if the petitioner knew or should 
                have known of the proposed purchase, it made 
                demonstrable efforts to conclude a sale with 
                the United States buyer consistent with the 
                delivery date and technical requirements of the 
                buyer.
          (ii) For purposes of clause (i)(III), there is a 
        rebuttable presumption that the petitioner knew or 
        should have known of the proposed purchase if it is 
        demonstrated that--
                  (I) the majority of the producers in the 
                industry have made efforts with the United 
                States buyer to conclude a sale of the subject 
                vessel, or
                  (II) general information on the sale was 
                available from brokers, financiers, 
                classification societies, charterers, trade 
                associations, or other entities normally 
                involved in shipbuilding transactions with whom 
                the petitioner had regular contacts or 
                dealings.
          (C) If the petitioner is an interested party 
        described in section 861(17)(D), the petition shall 
        include information indicating that members of the 
        union or group of workers described in that section are 
        employed by a producer that meets the requirements of 
        subparagraph (B) of this paragraph.
          (D) If the petitioner is an interested party 
        described in section 861(17)(E), the petition shall 
        include information indicating that a member of the 
        association described in that section is a producer 
        that meets the requirements of subparagraph (B) of this 
        paragraph.
          (E) If the petitioner is an interested party 
        described in section 861(17)(F), the petition shall 
        include information indicating that a member of the 
        association described in that section meets the 
        requirements of subparagraph (C) or (D) of this 
        paragraph.
          (F) The petition may be amended at such time, and 
        upon such conditions, as the administering authority 
        and the Commission may permit.
          (2) Simultaneous filing with commission.--The 
        petitioner shall file a copy of the petition with the 
        Commission on the same day as it is filed with the 
        administering authority.
          (3) Deadline for filing petition.--
                  (A) Deadline.--(i) A petitioner to which 
                paragraph (1)(B) (i) or (ii) applies shall file 
                the petition no later than the earlier of--
                          (I) 6 months after the time that the 
                        petitioner first knew or should have 
                        known of the sale of the subject 
                        vessel, or
                          (II) 6 months after delivery of the 
                        subject vessel.
                  (ii) A petitioner to which paragraph 
                (1)(B)(iii) applies shall--
                          (I) file the petition no later than 
                        the earlier of 9 months after the time 
                        that the petitioner first knew or 
                        should have known of the sale of the 
                        subject vessel, or 6 months after 
                        delivery of the subject vessel, and
                          (II) submit to the administering 
                        authority a notice of intent to file a 
                        petition no later than 6 months after 
                        the time that the petitioner first knew 
                        or should have known of the sale 
                        (unless the petition itself is filed 
                        within that 6-month period).
                  (B) Presumption of knowledge.--For purposes 
                of this paragraph, if the existence of the 
                sale, together with general information 
                concerning the vessel, is published in the 
                international trade press, there is a 
                rebuttable presumption that the petitioner knew 
                or should have known of the sale of the vessel 
                from the date of that publication.
  (c) Actions Before Initiating Investigations.--
          (1) Notification of governments.--Before initiating 
        an investigation under either subsection (a) or (b), 
        the administering authority shall notify the government 
        of the exporting country of the investigation. In the 
        case of the initiation of an investigation under 
        subsection (b), such notification shall include a 
        public version of the petition.
          (2) Acceptance of communications.--The administering 
        authority shall not accept any unsolicited oral or 
        written communication from any person other than an 
        interested party described in section 861(17)(C), (D), 
        (E), or (F) before the administering authority makes 
        its decision whether to initiate an investigation 
        pursuant to a petition, except for inquiries regarding 
        the status of the administering authority's 
        consideration of the petition or a request for 
        consultation by the government of the exporting 
        country.
          (3) Nondisclosure of certain information.--The 
        administering authority and the Commission shall not 
        disclose information with regard to any draft petition 
        submitted for review and comment before it is filed 
        under subsection (b)(1).
  (d) Petition Determination.--
           (1) Time for initial determination.--(A) Within 45 
        days after the date on which a petition is filed under 
        subsection (b), the administering authority shall, 
        after examining, on the basis of sources readily 
        available to the administering authority, the accuracy 
        and adequacy of the evidence provided in the petition, 
        determine whether the petition--
                  (i) alleges the elements necessary for the 
                imposition of an injurious pricing charge under 
                section 801(a) and the elements required under 
                subsection (b)(1)(B), (C), (D), or (E), and 
                contains information reasonably available to 
                the petitioner supporting the allegations; and
                  (ii) determine if the petition has been filed 
                by or on behalf of the industry.
          (B) Any period in which paragraph (6)(A) applies 
        shall not be included in calculating the 45-day period 
        described in subparagraph (A).
          (2) Affirmative determinations.--If the 
        determinations under clauses (i) and (ii) of paragraph 
        (1)(A) are affirmative, the administering authority 
        shall initiate an investigation to determine whether 
        the vessel was sold at less than fair value, unless 
        paragraph (6) applies.
          (3) Negative determinations.--If--
                  (A) the determination under clause (i) or 
                (ii) of paragraph (1)(A) is negative, or
                  (B) paragraph (6)(B) applies,
        the administering authority shall dismiss the petition, 
        terminate the proceeding, and notify the petitioner in 
        writing of the reasons for the determination.
          (4) Determination of industry support.--
                  (A) General rule.--For purposes of this 
                subsection, the administering authority shall 
                determine that the petition has been filed by 
                or on behalf of the domestic industry, if--
                          (i) the domestic producers or workers 
                        who support the petition collectively 
                        account for at least 25 percent of the 
                        total capacity of domestic producers 
                        capable of producing a like vessel, and
                          (ii) the domestic producers or 
                        workers who support the petition 
                        collectively account for more than 50 
                        percent of the total capacity to 
                        produce a like vessel of that portion 
                        of the domestic industry expressing 
                        support for or opposition to the 
                        petition.
                  (B) Certain positions disregarded.--In 
                determining industry support under subparagraph 
                (A), the administering authority shall 
                disregard the position of domestic producers 
                who oppose the petition, if such producers are 
                related to the foreign producer or United 
                States buyer of the subject vessel, or the 
                domestic producer is itself the United States 
                buyer, unless such domestic producers 
                demonstrate that their interests as domestic 
                producers would be adversely affected by the 
                imposition of an injurious pricing charge.
                  (C) Polling the industry.--If the petition 
                does not establish support of domestic 
                producers or workers accounting for more than 
                50 percent of the total capacity to produce a 
                like vessel--
                          (i) the administering authority shall 
                        poll the industry or rely on other 
                        information in order to determine if 
                        there is support for the petition as 
                        required by subparagraph (A), or
                          (ii) if there is a large number of 
                        producers in the industry, the 
                        administering authority may determine 
                        industry support for the petition by 
                        using any statistically valid sampling 
                        method to poll the industry.
                  (D) Comments by interested parties.--Before 
                the administering authority makes a 
                determination with respect to initiating an 
                investigation, any person who would qualify as 
                an interested party under section 861(17) if an 
                investigation were initiated, may submit 
                comments or information on the issue of 
                industry support. After the administering 
                authority makes a determination with respect to 
                initiating an investigation, the determination 
                regarding industry support shall not be 
                reconsidered.
          (5) Definition of domestic producers or workers.--For 
        purposes of this subsection, the term ``domestic 
        producers or workers'' means interested parties as 
        defined in section 861(17)(C), (D), (E), or (F).
          (6) Proceedings by wto members.--The administering 
        authority shall not initiate an investigation under 
        this section if, with respect to the vessel sale at 
        issue, an antidumping proceeding conducted by a WTO 
        member who is not a Shipbuilding Agreement Party--
                  (A) has been initiated and has been pending 
                for not more than one year, or
                  (B) has been completed and resulted in the 
                imposition of antidumping measures or a 
                negative determination with respect to whether 
                the sale was at less than fair value or with 
                respect to injury.
  (e) Notification to Commission of Determination.--The 
administering authority shall--
          (1) notify the Commission immediately of any 
        determination it makes under subsection (a) or (d), and
          (2) if the determination is affirmative, make 
        available to the Commission such information as it may 
        have relating to the matter under investigation, under 
        such procedures as the administering authority and the 
        Commission may establish to prevent disclosure, other 
        than with the consent of the party providing it or 
        under protective order, of any information to which 
        confidential treatment has been given by the 
        administering authority.

SEC. 803. PRELIMINARY DETERMINATIONS.

  (a) Determination by Commission of Reasonable Indication of 
Injury.--
          (1) General rule.--Except in the case of a petition 
        dismissed by the administering authority under section 
        802(d)(3), the Commission, within the time specified in 
        paragraph (2), shall determine, based on the 
        information available to it at the time of the 
        determination, whether there is a reasonable indication 
        that--
                  (A) an industry in the United States--
                          (i) is or has been materially 
                        injured, or
                          (ii) is threatened with material 
                        injury, or
                  (B) the establishment of an industry in the 
                United States is or has been materially 
                retarded,
        by reason of the sale of the subject vessel. If the 
        Commission makes a negative determination under this 
        paragraph, the investigation shall be terminated.
          (2) Time for commission determination.--The 
        Commission shall make the determination described in 
        paragraph (1) within 90 days after the date on which 
        the petition is filed or, in the case of an 
        investigation initiated under section 802(a), within 90 
        days after the date on which the Commission receives 
        notice from the administering authority that the 
        investigation has been initiated.
  (b) Preliminary Determination by Administering Authority.--
          (1) Period of injurious pricing investigation.--(A) 
        The administering authority shall make a determination, 
        based upon the information available to it at the time 
        of the determination, of whether there is a reasonable 
        basis to believe or suspect that the subject vessel was 
        sold at less than fair value.
          (B) If cost data is required to determine normal 
        value on the basis of a sale of a foreign like vessel 
        that has not been delivered on or before the date on 
        which the administering authority initiates the 
        investigation, the administering authority shall make 
        its determination within 160 days after the date of 
        delivery of the foreign like vessel.
          (C) If normal value is to be determined on the basis 
        of constructed value, the administering authority shall 
        make its determination within 160 days after the date 
        of delivery of the subject vessel.
          (D) In cases in which subparagraph (B) or (C) does 
        not apply, the administering authority shall make its 
        determination within 160 days after the date on which 
        the administering authority initiates the investigation 
        under section 802.
          (E) In no event shall the administering authority 
        make its determination before an affirmative 
        determination is made by the Commission under 
        subsection (a).
          (2) De minimis injurious pricing margin.--In making a 
        determination under this subsection, the administering 
        authority shall disregard any injurious pricing margin 
        that is de minimis. For purposes of the preceding 
        sentence, an injurious pricing margin is de minimis if 
        the administering authority determines that the margin 
        is less than 2 percent of the export price.
  (c) Extension of Period in Extraordinarily Complicated Cases 
or for Good Cause.--
          (1) In general.--If--
                  (A) the administering authority concludes 
                that the parties concerned are cooperating and 
                determines that--
                          (i) the case is extraordinarily 
                        complicated by reason of--
                                  (I) the novelty of the issues 
                                presented, or
                                  (II) the nature and extent of 
                                the information required, and
                          (ii) additional time is necessary to 
                        make the preliminary determination, or
                  (B) a party to the investigation requests an 
                extension and demonstrates good cause for the 
                extension,
        then the administering authority may postpone the time 
        for making its preliminary determination.
          (2) Length of postponement.--The preliminary 
        determination may be postponed under paragraph (1)(A) 
        or (B) until not later than the 190th day after--
                  (A) the date of delivery of the foreign like 
                vessel, if subsection (b)(1)(B) applies,
                  (B) the date of delivery of the subject 
                vessel, if subsection (b)(1)(C) applies, or
                  (C) the date on which the administering 
                authority initiates an investigation under 
                section 802, in a case in which subsection 
                (b)(1)(D) applies.
          (3) Notice of postponement.--The administering 
        authority shall notify the parties to the 
        investigation, not later than 20 days before the date 
        on which the preliminary determination would otherwise 
        be required under subsection (b)(1), if it intends to 
        postpone making the preliminary determination under 
        paragraph (1). The notification shall include an 
        explanation of the reasons for the postponement, and 
        notice of the postponement shall be published in the 
        Federal Register.
  (d) Effect of Determination by the Administering Authority.--
If the preliminary determination of the administering authority 
under subsection (b) is affirmative, the administering 
authority shall--
          (1) determine an estimated injurious pricing margin, 
        and
          (2) make available to the Commission all information 
        upon which its determination was based and which the 
        Commission considers relevant to its injury 
        determination, under such procedures as the 
        administering authority and the Commission may 
        establish to prevent disclosure, other than with the 
        consent of the party providing it or under protective 
        order, of any information to which confidential 
        treatment has been given by the administering 
        authority.
  (e) Notice of Determination.--Whenever the Commission or the 
administering authority makes a determination under this 
section, the Commission or the administering authority, as the 
case may be, shall notify the petitioner, and other parties to 
the investigation, and the Commission or the administering 
authority (whichever is appropriate) of its determination. The 
administering authority shall include with such notification 
the facts and conclusions on which its determination is based. 
Not later than 5 days after the date on which the determination 
is required to be made under subsection (a)(2), the Commission 
shall transmit to the administering authority the facts and 
conclusions on which its determination is based.

SEC. 804. TERMINATION OR SUSPENSION OF INVESTIGATION.

  (a) Termination of Investigation Upon Withdrawal of 
Petition.--
          (1) In general.--Except as provided in paragraph (2), 
        an investigation under this subtitle may be terminated 
        by either the administering authority or the 
        Commission, after notice to all parties to the 
        investigation, upon withdrawal of the petition by the 
        petitioner.
          (2) Limitation on termination by commission.--The 
        Commission may not terminate an investigation under 
        paragraph (1) before a preliminary determination is 
        made by the administering authority under section 
        803(b).
  (b) Termination of Investigations Initiated by Administering 
Authority.--The administering authority may terminate any 
investigation initiated by the administering authority under 
section 802(a) after providing notice of such termination to 
all parties to the investigation.
  (c) Alternate Equivalent Remedy.--The criteria set forth in 
subparagraphs (A) through (D) of section 806(e)(1) shall apply 
to any agreement that forms the basis for termination of an 
investigation under subsection (a) or (b).
  (d) Proceedings by WTO Members.--
          (1) Suspension of investigation.--The administering 
        authority and the Commission shall suspend an 
        investigation under this section if a WTO member that 
        is not a Shipbuilding Agreement Party initiates an 
        antidumping proceeding described in section 861(29)(A) 
        with respect to the sale of the subject vessel.
          (2) Termination of investigation.--If an antidumping 
        proceeding described in paragraph (1) is concluded by--
                  (A) the imposition of antidumping measures, 
                or
                  (B) a negative determination with respect to 
                whether the sale is at less than fair value or 
                with respect to injury,
        the administering authority and the Commission shall 
        terminate the investigation under this section.
          (3) Continuation of investigation.--(A) If such a 
        proceeding--
                  (i) is concluded by a result other than a 
                result described in paragraph (2), or
                  (ii) is not concluded within one year from 
                the date of the initiation of the proceeding,
        then the administering authority and the Commission 
        shall terminate the suspension and continue the 
        investigation. The period in which the investigation 
        was suspended shall not be included in calculating 
        deadlines applicable with respect to the investigation.
          (B) Notwithstanding subparagraph (A)(ii), if the 
        proceeding is concluded by a result described in 
        paragraph (2)(A), the administering authority and the 
        Commission shall terminate the investigation under this 
        section.

SEC. 805. FINAL DETERMINATIONS.

  (a) Determinations by Administering Authority.--
          (1) In general.--Within 75 days after the date of its 
        preliminary determination under section 803(b), the 
        administering authority shall make a final 
        determination of whether the vessel which is the 
        subject of the investigation has been sold in the 
        United States at less than its fair value.
          (2) Extension of period for determination.--(A) The 
        administering authority may postpone making the final 
        determination under paragraph (1) until not later than 
        290 days after--
                  (i) the date of delivery of the foreign like 
                vessel, in an investigation to which section 
                803(b)(1)(B) applies,
                  (ii) the date of delivery of the subject 
                vessel, in an investigation to which section 
                803(b)(1)(C) applies, or
                  (iii) the date on which the administering 
                authority initiates the investigation under 
                section 802, in an investigation to which 
                section 803(b)(1)(D) applies.
          (B) The administering authority may apply 
        subparagraph (A) if a request in writing is made by--
                  (i) the producer of the subject vessel, in a 
                proceeding in which the preliminary 
                determination by the administering authority 
                under section 803(b) was affirmative, or
                  (ii) the petitioner, in a proceeding in which 
                the preliminary determination by the 
                administering authority under section 803(b) 
                was negative.
          (3) De minimis injurious pricing margin.--In making a 
        determination under this subsection, the administering 
        authority shall disregard any injurious pricing margin 
        that is de minimis as defined in section 803(b)(2).
  (b) Final Determination by Commission.--
          (1) In general.--The Commission shall make a final 
        determination of whether--
                  (A) an industry in the United States--
                          (i) is or has been materially 
                        injured, or
                          (ii) is threatened with material 
                        injury, or
                  (B) the establishment of an industry in the 
                United States is or has been materially 
                retarded,
        by reason of the sale of the vessel with respect to 
        which the administering authority has made an 
        affirmative determination under subsection (a)(1).
          (2) Period for injury determination following 
        affirmative preliminary determination by administering 
        authority.--If the preliminary determination by the 
        administering authority under section 803(b) is 
        affirmative, then the Commission shall make the 
        determination required by paragraph (1) before the 
        later of--
                  (A) the 120th day after the day on which the 
                administering authority makes its affirmative 
                preliminary determination under section 803(b), 
                or
                  (B) the 45th day after the day on which the 
                administering authority makes its affirmative 
                final determination under subsection (a).
          (3) Period for injury determination following 
        negative preliminary determination by administering 
        authority.--If the preliminary determination by the 
        administering authority under section 803(b) is 
        negative, and its final determination under subsection 
        (a) is affirmative, then the final determination by the 
        Commission under this subsection shall be made within 
        75 days after the date of that affirmative final 
        determination.
  (c) Effect of Final Determinations.--
          (1) Effect of affirmative determination by the 
        administering authority.--If the determination of the 
        administering authority under subsection (a) is 
        affirmative, then the administering authority shall--
                  (A) make available to the Commission all 
                information upon which such determination was 
                based and which the Commission considers 
                relevant to its determination, under such 
                procedures as the administering authority and 
                the Commission may establish to prevent 
                disclosure, other than with the consent of the 
                party providing it or under protective order, 
                of any information to which confidential 
                treatment has been given by the administering 
                authority, and
                  (B) calculate an injurious pricing charge in 
                an amount equal to the amount by which the 
                normal value exceeds the export price of the 
                subject vessel.
          (2) Issuance of order; effect of negative 
        determination.--If the determinations of the 
        administering authority and the Commission under 
        subsections (a)(1) and (b)(1) are affirmative, then the 
        administering authority shall issue an injurious 
        pricing order under section 806. If either of such 
        determinations is negative, the investigation shall be 
        terminated upon the publication of notice of that 
        negative determination.
  (d) Publication of Notice of Determinations.--Whenever the 
administering authority or the Commission makes a determination 
under this section, it shall notify the petitioner, other 
parties to the investigation, and the other agency of its 
determination and of the facts and conclusions of law upon 
which the determination is based, and it shall publish notice 
of its determination in the Federal Register.
  (e) Correction of Ministerial Errors.--The administering 
authority shall establish procedures for the correction of 
ministerial errors in final determinations within a reasonable 
time after the determinations are issued under this section. 
Such procedures shall ensure opportunity for interested parties 
to present their views regarding any such errors. As used in 
this subsection, the term ``ministerial error'' includes errors 
in addition, subtraction, or other arithmetic function, 
clerical errors resulting from inaccurate copying, duplication, 
or the like, and any other type of unintentional error which 
the administering authority considers ministerial.

SEC. 806. IMPOSITION AND COLLECTION OF INJURIOUS PRICING CHARGE.

  (a) In General.--Within 10 days after being notified by the 
Commission of an affirmative determination under section 
805(b), the administering authority shall publish an order 
imposing an injurious pricing charge on the foreign producer of 
the subject vessel which--
          (1) directs the foreign producer of the subject 
        vessel to pay to the Secretary of the Treasury, or the 
        designee of the Secretary, within 180 days from the 
        date of publication of the order, an injurious pricing 
        charge in an amount equal to the amount by which the 
        normal value exceeds the export price of the subject 
        vessel,
          (2) includes the identity and location of the foreign 
        producer and a description of the subject vessel, in 
        such detail as the administering authority deems 
        necessary, and
          (3) informs the foreign producer that--
                  (A) failure to pay the injurious pricing 
                charge in a timely fashion may result in the 
                imposition of countermeasures with respect to 
                that producer under section 807,
                  (B) payment made after the deadline described 
                in paragraph (1) shall be subject to interest 
                charges at the Commercial Interest Reference 
                Rate (CIRR), and
                  (C) the foreign producer may request an 
                extension of the due date for payment under 
                subsection (b).
  (b) Extension of Due Date for Payment in Extraordinary 
Circumstances.--
          (1) Extension.--Upon request, the administering 
        authority may amend the order under subsection (a) to 
        set a due date for payment or payments later than the 
        date that is 180 days from the date of publication of 
        the order, if the administering authority determines 
        that full payment in 180 days would render the producer 
        insolvent or would be incompatible with a judicially 
        supervised reorganization. When an extended payment 
        schedule provides for a series of partial payments, the 
        administering authority shall specify the circumstances 
        under which default on one or more payments will result 
        in the imposition of countermeasures.
          (2) Interest charges.--If a request is granted under 
        paragraph (1), payments made after the date that is 180 
        days from the publication of the order shall be subject 
        to interest charges at the CIRR.
  (c) Notification of Order.--The administering authority shall 
deliver a copy of the order requesting payment to the foreign 
producer of the subject vessel and to an appropriate 
representative of the government of the exporting country.
  (d) Revocation of Order.--The administering authority--
          (1) may revoke an injurious pricing order if the 
        administering authority determines that producers 
        accounting for substantially all of the capacity to 
        produce a domestic like vessel have expressed a lack of 
        interest in the order, and
          (2) shall revoke an injurious pricing order--
                  (A) if the sale of the vessel that was the 
                subject of the injurious pricing determination 
                is voided,
                  (B) if the injurious pricing charge is paid 
                in full, including any interest accrued for 
                late payment,
                  (C) upon full implementation of an 
                alternative equivalent remedy described in 
                subsection (e), or
                  (D) if, with respect to the vessel sale that 
                was at issue in the investigation that resulted 
                in the injurious pricing order, an antidumping 
                proceeding conducted by a WTO member who is not 
                a Shipbuilding Agreement Party has been 
                completed and resulted in the imposition of 
                antidumping measures.
  (e) Alternative Equivalent Remedy.--
          (1) Agreement for alternate remedy.--The 
        administering authority may suspend an injurious 
        pricing order if the administering authority enters 
        into an agreement with the foreign producer subject to 
        the order on an alternative equivalent remedy, that the 
        administering authority determines--
                  (A) is at least as effective a remedy as the 
                injurious pricing charge,
                  (B) is in the public interest,
                  (C) can be effectively monitored and 
                enforced, and
                  (D) is otherwise consistent with the domestic 
                law and international obligations of the United 
                States.
          (2) Prior consultations and submission of comments.--
        Before entering into an agreement under paragraph (1), 
        the administering authority shall consult with the 
        industry, and provide for the submission of comments by 
        interested parties, with respect to the agreement.
          (3) Material violations of agreement.--If the 
        injurious pricing order has been suspended under 
        paragraph (1), and the administering authority 
        determines that the foreign producer concerned has 
        materially violated the terms of the agreement under 
        paragraph (1), the administering authority shall 
        terminate the suspension.

SEC. 807. IMPOSITION OF COUNTERMEASURES.

  (a) General Rule.--
          (1) Issuance of order imposing countermeasures.--
        Unless an injurious pricing order is revoked or 
        suspended under section 806 (d) or (e), the 
        administering authority shall issue an order imposing 
        countermeasures.
          (2) Contents of order.--The countermeasure order 
        shall--
                  (A) state that, as provided in section 468, a 
                permit to lade or unlade passengers or 
                merchandise may not be issued with respect to 
                vessels contracted to be built by the foreign 
                producer of the vessel with respect to which an 
                injurious pricing order was issued under 
                section 806, and
                  (B) specify the scope and duration of the 
                prohibition on the issuance of a permit to lade 
                or unlade passengers or merchandise.
  (b) Notice of Intent To Impose Countermeasures.--
          (1) General rule.--The administering authority shall 
        issue a notice of intent to impose countermeasures not 
        later than 30 days before the expiration of the time 
        for payment specified in the injurious pricing order 
        (or extended payment provided for under section 
        806(b)), and shall publish the notice in the Federal 
        Register within 7 days after issuing the notice.
          (2) Elements of the notice of intent.--The notice of 
        intent shall contain at least the following elements:
                  (A) Scope.--A permit to lade or unlade 
                passengers or merchandise may not be issued 
                with respect to any vessel--
                          (i) built by the foreign producer 
                        subject to the proposed 
                        countermeasures, and
                          (ii) with respect to which the 
                        material terms of sale are established 
                        within a period of 4 consecutive years 
                        beginning on the date that is 30 days 
                        after publication in the Fedeal 
                        Register of the notice of intent 
                        described in paragraph (1).
                  (B) Duration.--For each vessel described in 
                subparagraph (A), a permit to lade or unlade 
                passengers or merchandise may not be issued for 
                a period of 4 years after the date of delivery 
                of the vessel.
  (c) Determination To Impose Countermeasures; Order.--
          (1) General rule.--The administering authority shall, 
        within the time specified in paragraph (2), issue a 
        determination and order imposing countermeasures.
          (2) Time for determination.--The determination shall 
        be issued within 90 days after the date on which the 
        notice of intent to impose countermeasures under 
        subsection (b) is published in the Federal Register. 
        The administering authority shall publish the 
        determination, and the order described in paragraph 
        (4), in the Federal Register within 7 days after 
        issuing the final determination, and shall provide a 
        copy of the determination and order to the Customs 
        Service.
          (3) Content of the determination.--In the 
        determination imposing countermeasures, the 
        administering authority shall determine whether, in 
        light of all of the circumstances, an interested party 
        has demonstrated that the scope or duration of the 
        countermeasures described in subsection (b)(2) should 
        be narrower or shorter than the scope or duration set 
        forth in the notice of intent to impose 
        countermeasures.
          (4) Order.--At the same time it issues its 
        determination, the administering authority shall issue 
        an order imposing countermeasures, consistent with its 
        determination.
  (d) Administrative Review of Determination To Impose 
Countermeasures.--
          (1) Request for review.--Each year, in the 
        anniversary month of the issuance of the order imposing 
        countermeasures under subsection (c), the administering 
        authority shall publish in the Federal Register a 
        notice providing that interested parties may request--
                  (A) a review of the scope or duration of the 
                countermeasures determined under subsection 
                (c)(3), and
                  (B) a hearing in connection with such a 
                review.
          (2) Review.--If a proper request has been received 
        under paragraph (1), the administering authority 
        shall--
                  (A) publish notice of initiation of a review 
                in the Federal Register not later than 15 days 
                after the end of the anniversary month of the 
                issuance of the order imposing countermeasures, 
                and
                  (B) review and determine whether the 
                requesting party has demonstrated that the 
                scope or duration of the countermeasures is 
                excessive in light of all of the circumstances.
          (3) Time for review.--The administering authority 
        shall make its determination under paragraph (2)(B) 
        within 90 days after the date on which the notice of 
        initiation of the review is published. If the 
        determination under paragraph (2)(B) is affirmative, 
        the administering authority shall amend the order 
        accordingly. The administering authority shall promptly 
        publish the determination and any amendment to the 
        order in the Federal Register, and shall provide a copy 
        of any amended order to the Customs Service. In 
        extraordinary circumstances, the administering 
        authority may extend the time for its determination 
        under paragraph (2)(B) to not later than 150 days after 
        the date on which the notice of initiation of the 
        review is published.
  (e) Extension of Countermeasures.--
          (1) Request for extension.--Within the time described 
        in paragraph (2), an interested party may file with the 
        administering authority a request that the scope or 
        duration of countermeasures be extended.
          (2) Deadline for request for extension.--
                  (A) Request for extension beyond 4 years.--If 
                the request seeks an extension that would cause 
                the scope or duration of countermeasures to 
                exceed 4 years, including any prior extensions, 
                the request for extension under paragraph (1) 
                shall be filed not earlier than the date that 
                is 15 months, and not later than the date that 
                is 12 months, before the date that marks the 
                end of the period that specifies the vessels 
                that fall within the scope of the order by 
                virtue of the establishment of material terms 
                of sale within that period.
                  (B) Other requests.--If the request seeks an 
                extension under paragraph (1) other than one 
                described in subparagraph (A), the request 
                shall be filed not earlier than the date that 
                is 6 months, and not later than a date that is 
                3 months, before the date that marks the end of 
                the period referred to in subparagraph (A).
          (3) Determination.--
                  (A) Notice of request for extension.--If a 
                proper request has been received under 
                paragraph (1), the administering authority 
                shall publish notice of initiation of an 
                extension proceeding in the Federal Register 
                not later than 15 days after the applicable 
                deadline in paragraph (2) for requesting the 
                extension.
                  (B) Procedures.--
                          (i) Requests for extension beyond 4 
                        years.--If paragraph (2)(A) applies to 
                        the request, the administering 
                        authority shall consult with the Trade 
                        Representative under paragraph (4).
                          (ii) Other requests.--If paragraph 
                        (2)(B) applies to the request, the 
                        administering authority shall 
                        determine, within 90 days after the 
                        date on which the notice of initiation 
                        of the proceeding is published, whether 
                        the requesting party has demonstrated 
                        that the scope or duration of the 
                        countermeasures is inadequate in light 
                        of all of the circumstances. If the 
                        administering authority determines that 
                        an extension is warranted, it shall 
                        amend the countermeasure order 
                        accordingly. The administering 
                        authority shall promptly publish the 
                        determination and any amendment to the 
                        order in the Federal Register, and 
                        shall provide a copy of any amended 
                        order to the Customs Service.
          (4) Consultation with trade representative.--If 
        paragraph (3)(B)(i) applies, the administering 
        authority shall consult with the Trade Representative 
        concerning whether it would be appropriate to request 
        establishment of a dispute settlement panel under the 
        Shipbuilding Agreement for the purpose of seeking 
        authorization to extend the scope or duration of 
        countermeasures for a period in excess of 4 years.
          (5) Decision not to request panel.--If, based on 
        consultations under paragraph (4), the Trade 
        Representative decides not to request establishment of 
        a panel, the Trade Representative shall inform the 
        party requesting the extension of the countermeasures 
        of the reasons for its decision in writing. The 
        decision shall not be subject to judicial review.
          (6) Panel proceedings.--If, based on consultations 
        under paragraph (4), the Trade Representative requests 
        the establishment of a panel under the Shipbuilding 
        Agreement to authorize an extension of the period of 
        countermeasures, and the panel authorizes such an 
        extension, the administering authority shall promptly 
        amend the countermeasure order. The administering 
        authority shall publish notice of the amendment in the 
        Federal Register.
  (f) List of Vessels Subject to Countermeasures.--
          (1) General rule.--At least once during each 12-month 
        period beginning on the anniversary date of a 
        determination to impose countermeasures under this 
        section, the administering authority shall publish in 
        the Federal Register a list of all delivered vessels 
        subject to countermeasures under the determination.
          (2) Content of list.--The list under paragraph (1) 
        shall include the following information for each 
        vessel, to the extent the information is available:
                  (A) The name and general description of the 
                vessel.
                  (B) The vessel identification number.
                  (C) The shipyard where the vessel was 
                constructed.
                  (D) The last-known registry of the vessel.
                  (E) The name and address of the last-known 
                owner of the vessel.
                  (F) The delivery date of the vessel.
                  (G) The remaining duration of countermeasures 
                on the vessel.
                  (H) Any other identifying information 
                available.
          (3) Amendment of list.---The administering authority 
        may amend the list from time to time to reflect new 
        information that comes to its attention and shall 
        publish any amendments in the Federal Register.
          (4) Service of list and amendments.--(A) The 
        administering authority shall serve a copy of the list 
        described in paragraph (1) on--
                  (i) the petitioner under section 802(b),
                  (ii) the United States Customs Service,
                  (iii) the Secretariat of the Organization for 
                Economic Cooperation and Development,
                  (iv) the owners of vessels on the list,
                  (v) the shipyards on the list, and
                  (vi) the government of the country in which a 
                shipyard on the list is located.
          (B) The administering authority shall serve a copy of 
        any amendments to the list under paragraph (3) or 
        subsection (g)(3) on--
                  (i) the parties listed in clauses (i), (ii), 
                and (iii) of subparagraph (A), and,
                  (ii) if the amendment affects their 
                interests, the parties listed in clauses (iv), 
                (v), and (vi) of subparagraph (A).
  (g) Administrative Review of List of Vessels Subject to 
Countermeasures.--
          (1) Request for review.--(A) An interested party may 
        request in writing a review of the list described in 
        subsection (f)(1), including any amendments thereto, to 
        determine whether--
                  (i) a vessel included in the list does not 
                fall within the scope of the applicable 
                countermeasure order and should be deleted, or
                  (ii) a vessel not included in the list falls 
                within the scope of the applicable 
                countermeasure order and should be added.
          (B) Any request seeking a determination described in 
        subparagraph (A)(i) shall be made within 90 days after 
        the date of publication of the applicable list.
          (2) Review.--If a proper request for review has been 
        received, the administering authority shall--
                  (A) publish notice of initiation of a review 
                in the Federal Register--
                          (i) not later than 15 days after the 
                        request is received, or
                          (ii) if the request seeks a 
                        determination described in paragraph 
                        (1)(A)(i), not later than 15 days after 
                        the deadline described in paragraph 
                        (1)(B), and
                  (B) review and determine whether the 
                requesting party has demonstrated that--
                          (i) a vessel included in the list 
                        does not qualify for such inclusion, or
                          (ii) a vessel not included in the 
                        list qualifies for inclusion.
          (3) Time for determination.--The administering 
        authority shall make its determination under paragraph 
        (2)(B) within 90 days after the date on which the 
        notice of initiation of such review is published. If 
        the administering authority determines that a vessel 
        should be added or deleted from the list, the 
        administering authority shall amend the list 
        accordingly. The administering authority shall promptly 
        publish in the Federal Register the determination and 
        any such amendment to the list.
  (h) Expiration of Countermeasures.--Upon expiration of a 
countermeasure order imposed under this section, the 
administering authority shall promptly publish a notice of the 
expiration in the Federal Register.
  (i) Suspension or Termination of Proceedings or 
Countermeasures; Temporary Reduction of Countermeasures.--
          (1) If injurious pricing order revoked or 
        suspended.--If an injurious pricing order has been 
        revoked or suspended under section 806(d) or (e), the 
        administering authority shall, as appropriate, suspend 
        or terminate proceedings under this section with 
        respect to that order, or suspend or revoke a 
        countermeasure order issued with respect to that 
        injurious pricing order.
          (2) If payment date amended.--(A) Subject to 
        subparagraph (C), if the payment date under an 
        injurious pricing order is amended under section 845, 
        the administering authority shall, as appropriate, 
        suspend proceedings or modify deadlines under this 
        section, or suspend or amend a countermeasure order 
        issued with respect to that injurious pricing order.
          (B) In taking action under subparagraph (A), the 
        administering authority shall ensure that 
        countermeasures are not applied before the date that is 
        30 days after publication in the Federal Register of 
        the amended payment date.
          (C) If--
                  (i) a countermeasure order is issued under 
                subsection (c) before an amendment is made 
                under section 845 to the payment date of the 
                injurious pricing order to which the 
                countermeasure order applies, and
                  (ii) the administering authority determines 
                that the period of time between the original 
                payment date and the amended payment date is 
                significant for purposes of determining the 
                appropriate scope or duration of 
                countermeasures,
        the administering authority may, in lieu of acting 
        under subparagraph (A), reinstitute proceedings under 
        subsection (c) for purposes of issuing a new 
        determination under that subsection.
  (j) Comment and Hearing.--In the course of any proceeding 
under subsection (c), (d), (e), or (g), the administering 
authority--
          (1) shall solicit comments from interested parties, 
        and
          (2)(A) in a proceeding under subsection (c) or (d), 
        upon the request of an interested party, shall hold a 
        hearing in accordance with section 841(b) in connection 
        with that proceeding, or
          (B) in a proceeding under subsection (e) or (g), upon 
        the request of an interested party, may hold a hearing 
        in accordance with section 841(b) in connection with 
        that proceeding.

SEC. 808. INJURIOUS PRICING PETITIONS BY THIRD COUNTRIES.

  (a) Filing of Petition.--The government of a Shipbuilding 
Agreement Party may file with the Trade Representative a 
petition requesting that an investigation be conducted to 
determine if--
          (1) a vessel from another Shipbuilding Agreement 
        Party has been sold in the United States at less than 
        fair value, and
          (2) an industry, in the petitioning country, 
        producing or capable of producing a like vessel is 
        materially injured by reason of such sale.
  (b) Initiation.--The Trade Representative, after consultation 
with the administering authority and the Commission and 
obtaining the approval of the Parties Group under the 
Shipbuilding Agreement, shall determine whether to initiate an 
investigation described in subsection (a).
  (c) Determinations.--Upon initiation of an investigation 
under subsection (a), the Trade Representative shall request 
the following determinations be made in accordance with 
substantive and procedural requirements specified by the Trade 
Representative, notwithstanding any other provision of this 
title:
          (1) The administering authority shall determine 
        whether the subject vessel has been sold at less than 
        fair value.
          (2) The Commission shall determine whether an 
        industry in the petitioning country is materially 
        injured by reason of the sale of the subject vessel in 
        the United States.
  (d) Public Comment.--An opportunity for public comment shall 
be provided, as appropriate--
          (1) by the Trade Representative, in making the 
        determinations required by subsection (b), and
          (2) by the administering authority and the 
        Commission, in making the determinations required by 
        subsection (c).
  (e) Issuance of Order.--If the administering authority makes 
an affirmative determination under paragraph (1) of subsection 
(c), and the Commission makes an affirmative determination 
under paragraph (2) of subsection (c), the administering 
authority shall--
          (1) order an injurious pricing charge in accordance 
        with section 806, and
          (2) make such determinations and take such other 
        actions as are required by sections 806 and 807, as if 
        affirmative determinations had been made under 
        subsections (a) and (b) of section 805.
  (f) Reviews of Determinations.--For purposes of review under 
section 516B, if an order is issued under subsection (e)--
          (1) the final determinations of the administering 
        authority and the Commission under subsection (c) shall 
        be treated as final determinations made under section 
        805, and
          (2) determinations of the administering authority 
        under subsection (e)(2) shall be treated as 
        determinations made under section 806 or 807, as the 
        case may be.
  (g) Access to Information.--Section 843 shall apply to 
investigations under this section, to the extent specified by 
the Trade Representative, after consultation with the 
administering authority and the Commission.

                       Subtitle B--Special Rules

SEC. 821. EXPORT PRICE.

  (a) Export Price.--For purposes of this title, the term 
``export price'' means the price at which the subject vessel is 
first sold (or agreed to be sold) by or for the account of the 
foreign producer of the subject vessel to an unaffiliated 
United States buyer. The term ``sold (or agreed to be sold) by 
or for the account of the foreign producer'' includes any 
transfer of an ownership interest, including by way of lease or 
long-term bareboat charter, in conjunction with the original 
transfer from the producer, either directly or indirectly, to a 
United States buyer.
  (b) Adjustments to Export Price.--The price used to establish 
export price shall be--
          (1) increased by the amount of any import duties 
        imposed by the country of exportation which have been 
        rebated, or which have not been collected, by reason of 
        the exportation of the subject vessel, and
          (2) reduced by--
                  (A) the amount, if any, included in such 
                price, attributable to any additional costs, 
                charges, or expenses which are incident to 
                bringing the subject vessel from the shipyard 
                in the exporting country to the place of 
                delivery,
                  (B) the amount, if included in such price, of 
                any export tax, duty, or other charge imposed 
                by the exporting country on the exportation of 
                the subject vessel, and
                  (C) all other expenses incidental to placing 
                the vessel in condition for delivery to the 
                buyer.

SEC. 822. NORMAL VALUE.

  (a) Determination.--In determining under this title whether a 
subject vessel has been sold at less than fair value, a fair 
comparison shall be made between the export price and normal 
value of the subject vessel. In order to achieve a fair 
comparison with the export price, normal value shall be 
determined as follows:
          (1) Determination of normal value.--
                  (A) In general.--The normal value of the 
                subject vessel shall be the price described in 
                subparagraph (B), at a time reasonably 
                corresponding to the time of the sale used to 
                determine the export price under section 
                821(a).
                  (B) Price.--The price referred to in 
                subparagraph (A) is--
                          (i) the price at which a foreign like 
                        vessel is first sold in the exporting 
                        country, in the ordinary course of 
                        trade and, to the extent practicable, 
                        at the same level of trade, or
                          (ii) in a case to which subparagraph 
                        (C) applies, the price at which a 
                        foreign like vessel is so sold for 
                        consumption in a country other than the 
                        exporting country or the United States, 
                        if--
                                  (I) such price is 
                                representative, and
                                  (II) the administering 
                                authority does not determine 
                                that the particular market 
                                situation in such other country 
                                prevents a proper comparison 
                                with the export price.
                  (C) Third country sales.--This subparagraph 
                applies when--
                          (i) a foreign like vessel is not sold 
                        in the exporting country as described 
                        in subparagraph (B)(i), or
                          (ii) the particular market situation 
                        in the exporting country does not 
                        permit a proper comparison with the 
                        export price.
                  (D) Contemporaneous sale.--For purposes of 
                subparagraph (A), ``a time reasonably 
                corresponding to the time of the sale'' means 
                within 3 months before or after the sale of the 
                subject vessel or, in the absence of such 
                sales, such longer period as the administering 
                authority determines would be appropriate.
          (2) Fictitious markets.--No pretended sale, and no 
        sale intended to establish a fictitious market, shall 
        be taken into account in determining normal value.
          (3) Use of constructed value.--If the administering 
        authority determines that the normal value of the 
        subject vessel cannot be determined under paragraph 
        (1)(B) or (1)(C), then the normal value of the subject 
        vessel shall be the constructed value of that vessel, 
        as determined under subsection (e).
          (4) Indirect sales.--If a foreign like vessel is sold 
        through an affiliated party, the price at which the 
        foreign like vessel is sold by such affiliated party 
        may be used in determining normal value.
          (5) Adjustments.--The price described in paragraph 
        (1)(B) shall be--
                  (A) reduced by--
                          (i) the amount, if any, included in 
                        the price described in paragraph 
                        (1)(B), attributable to any costs, 
                        charges, and expenses incident to 
                        bringing the foreign like vessel from 
                        the shipyard to the place of delivery 
                        to the purchaser,
                          (ii) the amount of any taxes imposed 
                        directly upon the foreign like vessel 
                        or components thereof which have been 
                        rebated, or which have not been 
                        collected, on the subject vessel, but 
                        only to the extent that such taxes are 
                        added to or included in the price of 
                        the foreign like vessel, and
                          (iii) the amount of all other 
                        expenses incidental to placing the 
                        foreign like vessel in condition for 
                        delivery to the buyer, and
                  (B) increased or decreased by the amount of 
                any difference (or lack thereof) between the 
                export price and the price described in 
                paragraph (1)(B) (other than a difference for 
                which allowance is otherwise provided under 
                this section) that is established to the 
                satisfaction of the administering authority to 
                be wholly or partly due to--
                          (i) physical differences between the 
                        subject vessel and the vessel used in 
                        determining normal value, or
                          (ii) other differences in the 
                        circumstances of sale.
          (6) Adjustments for level of trade.--The price 
        described in paragraph (1)(B) shall also be increased 
        or decreased to make due allowance for any difference 
        (or lack thereof) between the export price and the 
        price described in paragraph (1)(B) (other than a 
        difference for which allowance is otherwise made under 
        this section) that is shown to be wholly or partly due 
        to a difference in level of trade between the export 
        price and normal value, if the difference in level of 
        trade--
                  (A) involves the performance of different 
                selling activities, and
                  (B) is demonstrated to affect price 
                comparability, based on a pattern of consistent 
                price differences between sales at different 
                levels of trade in the country in which normal 
                value is determined.
        In a case described in the preceding sentence, the 
        amount of the adjustment shall be based on the price 
        differences between the two levels of trade in the 
        country in which normal value is determined.
          (7) Adjustments to constructed value.--Constructed 
        value as determined under subsection (d) may be 
        adjusted, as appropriate, pursuant to this subsection.
  (b) Sales at Less Than Cost of Production.--
          (1) Determination; sales disregarded.--Whenever the 
        administering authority has reasonable grounds to 
        believe or suspect that the sale of the foreign like 
        vessel under consideration for the determination of 
        normal value has been made at a price which represents 
        less than the cost of production of the foreign like 
        vessel, the administering authority shall determine 
        whether, in fact, such sale was made at less than the 
        cost of production. If the administering authority 
        determines that the sale was made at less than the cost 
        of production and was not at a price which permits 
        recovery of all costs within 5 years, such sale may be 
        disregarded in the determination of normal value. 
        Whenever such a sale is disregarded, normal value shall 
        be based on another sale of a foreign like vessel in 
        the ordinary course of trade. If no sales made in the 
        ordinary course of trade remain, the normal value shall 
        be based on the constructed value of the subject 
        vessel.
          (2) Definitions and special rules.--For purposes of 
        this subsection:
                  (A) Reasonable grounds to believe or 
                suspect.--There are reasonable grounds to 
                believe or suspect that the sale of a foreign 
                like vessel was made at a price that is less 
                than the cost of production of the vessel, if 
                an interested party described in subparagraph 
                (C), (D), (E), or (F) of section 861(17) 
                provides information, based upon observed 
                prices or constructed prices or costs, that the 
                sale of the foreign like vessel under 
                consideration for the determination of normal 
                value has been made at a price which represents 
                less than the cost of production of the vessel.
                  (B) Recovery of costs.--If the price is below 
                the cost of production at the time of sale but 
                is above the weighted average cost of 
                production for the period of investigation, 
                such price shall be considered to provide for 
                recovery of costs within 5 years.
          (3) Calculation of cost of production.--For purposes 
        of this section, the cost of production shall be an 
        amount equal to the sum of--
                  (A) the cost of materials and of fabrication 
                or other processing of any kind employed in 
                producing the foreign like vessel, during a 
                period which would ordinarily permit the 
                production of that vessel in the ordinary 
                course of business, and
                  (B) an amount for selling, general, and 
                administrative expenses based on actual data 
                pertaining to the production and sale of the 
                foreign like vessel by the producer in 
                question.
        For purposes of subparagraph (A), if the normal value 
        is based on the price of the foreign like vessel sold 
        in a country other than the exporting country, the cost 
        of materials shall be determined without regard to any 
        internal tax in the exporting country imposed on such 
        materials or on their disposition which are remitted or 
        refunded upon exportation.
  (c) Nonmarket Economy Countries.--
          (1) In general.--If--
                  (A) the subject vessel is produced in a 
                nonmarket economy country, and
                  (B) the administering authority finds that 
                available information does not permit the 
                normal value of the subject vessel to be 
                determined under subsection (a),
        the administering authority shall determine the normal 
        value of the subject vessel on the basis of the value 
        of the factors of production utilized in producing the 
        vessel and to which shall be added an amount for 
        general expenses and profit plus the cost of expenses 
        incidental to placing the vessel in a condition for 
        delivery to the buyer. Except as provided in paragraph 
        (2), the valuation of the factors of production shall 
        be based on the best available information regarding 
        the values of such factors in a market economy country 
        or countries considered to be appropriate by the 
        administering authority.
          (2) Exception.--If the administering authority finds 
        that the available information is inadequate for 
        purposes of determining the normal value of the subject 
        vessel under paragraph (1), the administering authority 
        shall determine the normal value on the basis of the 
        price at which a vessel that is--
                  (A) comparable to the subject vessel, and
                  (B) produced in one or more market economy 
                countries that are at a level of economic 
                development comparable to that of the nonmarket 
                economy country,
        is sold in other countries, including the United 
        States.
          (3) Factors of production.--For purposes of paragraph 
        (1), the factors of production utilized in producing 
        the vessel include, but are not limited to--
                  (A) hours of labor required,
                  (B) quantities of raw materials employed,
                  (C) amounts of energy and other utilities 
                consumed, and
                  (D) representative capital cost, including 
                depreciation.
          (4) Valuation of factors of production.--The 
        administering authority, in valuing factors of 
        production under paragraph (1), shall utilize, to the 
        extent possible, the prices or costs of factors of 
        production in one or more market economy countries that 
        are--
                  (A) at a level of economic development 
                comparable to that of the nonmarket economy 
                country, and
                  (B) significant producers of comparable 
                vessels.
  (d) Special Rule for Certain Multinational Corporations.--
Whenever, in the course of an investigation under this title, 
the administering authority determines that--
          (1) the subject vessel was produced in facilities 
        which are owned or controlled, directly or indirectly, 
        by a person, firm, or corporation which also owns or 
        controls, directly or indirectly, other facilities for 
        the production of a foreign like vessel which are 
        located in another country or countries,
          (2) subsection (a)(1)(C) applies, and
          (3) the normal value of a foreign like vessel 
        produced in one or more of the facilities outside the 
        exporting country is higher than the normal value of 
        the foreign like vessel produced in the facilities 
        located in the exporting country,
the administering authority shall determine the normal value of 
the subject vessel by reference to the normal value at which a 
foreign like vessel is sold from one or more facilities outside 
the exporting country. The administering authority, in making 
any determination under this subsection, shall make adjustments 
for the difference between the costs of production (including 
taxes, labor, materials, and overhead) of the foreign like 
vessel produced in facilities outside the exporting country and 
costs of production of the foreign like vessel produced in 
facilities in the exporting country, if such differences are 
demonstrated to its satisfaction.
  (e) Constructed Value.--
          (1) In general.--For purposes of this title, the 
        constructed value of a subject vessel shall be an 
        amount equal to the sum of--
                  (A) the cost of materials and fabrication or 
                other processing of any kind employed in 
                producing the subject vessel, during a period 
                which would ordinarily permit the production of 
                the vessel in the ordinary course of business, 
                and
                  (B)(i) the actual amounts incurred and 
                realized by the foreign producer of the subject 
                vessel for selling, general, and administrative 
                expenses, and for profits, in connection with 
                the production and sale of a foreign like 
                vessel, in the ordinary course of trade, in the 
                domestic market of the country of origin of the 
                subject vessel, or
                  (ii) if actual data are not available with 
                respect to the amounts described in clause (i), 
                then--
                          (I) the actual amounts incurred and 
                        realized by the foreign producer of the 
                        subject vessel for selling, general, 
                        and administrative expenses, and for 
                        profits, in connection with the 
                        production and sale of the same general 
                        category of vessel in the domestic 
                        market of the country of origin of the 
                        subject vessel,
                          (II) the weighted average of the 
                        actual amounts incurred and realized by 
                        producers in the country of origin of 
                        the subject vessel (other than the 
                        producer of the subject vessel) for 
                        selling, general, and administrative 
                        expenses, and for profits, in 
                        connection with the production and sale 
                        of a foreign like vessel, in the 
                        ordinary course of trade, in the 
                        domestic market, or
                          (III) if data is not available under 
                        subclause (I) or (II), the amounts 
                        incurred and realized for selling, 
                        general, and administrative expenses, 
                        and for profits, based on any other 
                        reasonable method, except that the 
                        amount allowed for profit may not 
                        exceed the amount normally realized by 
                        foreign producers (other than the 
                        producer of the subject vessel) in 
                        connection with the sale of vessels in 
                        the same general category of vessel as 
                        the subject vessel in the domestic 
                        market of the country of origin of the 
                        subject vessel.
        The profit shall, for purposes of this paragraph, be 
        based on the average profit realized over a reasonable 
        period of time before and after the sale of the subject 
        vessel and shall reflect a reasonable profit at the 
        time of such sale. For purposes of the preceding 
        sentence, a ``reasonable period of time'' shall not, 
        except where otherwise appropriate, exceed 6 months 
        before, or 6 months after, the sale of the subject 
        vessel. In calculating profit under this paragraph, any 
        distortion which would result in other than a profit 
        which is reasonable at the time of the sale shall be 
        eliminated.
          (2) Costs and profits based on other reasonable 
        methods.--When costs and profits are determined under 
        paragraph (1)(B)(ii)(III), such determination shall, 
        except where otherwise appropriate, be based on 
        appropriate export sales by the producer of the subject 
        vessel or, absent such sales, to export sales by other 
        producers of a foreign like vessel or the same general 
        category of vessel as the subject vessel in the country 
        of origin of the subject vessel.
          (3) Costs of materials.--For purposes of paragraph 
        (1)(A), the cost of materials shall be determined 
        without regard to any internal tax in the exporting 
        country imposed on such materials or their disposition 
        which are remitted or refunded upon exportation of the 
        subject vessel produced from such materials.
  (f) Special Rules for Calculation of Cost of Production and 
for Calculation of Constructed Value.--For purposes of 
subsections (b) and (e)--
          (1) Costs.--
                  (A) In general.--Costs shall normally be 
                calculated based on the records of the foreign 
                producer of the subject vessel, if such records 
                are kept in accordance with the generally 
                accepted accounting principles of the exporting 
                country and reasonably reflect the costs 
                associated with the production and sale of the 
                vessel. The administering authority shall 
                consider all available evidence on proper 
                allocation of costs, including that which is 
                made available by the foreign producer on a 
                timely basis, if such allocations have been 
                historically used by the foreign producer, in 
                particular for establishing appropriate 
                amortization and depreciation periods, and 
                allowances for capital expenditures and other 
                development costs.
                  (B) Nonrecurring costs.--Costs shall be 
                adjusted appropriately for those nonrecurring 
                costs that benefit current or future 
                production, or both.
                  (C) Startup costs.--
                          (i) In general.--Costs shall be 
                        adjusted appropriately for 
                        circumstances in which costs incurred 
                        during the time period covered by the 
                        investigation are affected by startup 
                        operations.
                          (ii) Startup operations.--Adjustments 
                        shall be made for startup operations 
                        only where--
                                  (I) a producer is using new 
                                production facilities or 
                                producing a new type of vessel 
                                that requires substantial 
                                additional investment, and
                                  (II) production levels are 
                                limited by technical factors 
                                associated with the initial 
                                phase of commercial production.
                        For purposes of subclause (II), the 
                        initial phase of commercial production 
                        ends at the end of the startup period. 
                        In determining whether commercial 
                        production levels have been achieved, 
                        the administering authority shall 
                        consider factors unrelated to startup 
                        operations that might affect the volume 
                        of production processed, such as 
                        demand, seasonality, or business 
                        cycles.
                          (iii) Adjustment for startup 
                        operations.--The adjustment for startup 
                        operations shall be made by 
                        substituting the unit production costs 
                        incurred with respect to the vessel at 
                        the end of the startup period for the 
                        unit production costs incurred during 
                        the startup period. If the startup 
                        period extends beyond the period of the 
                        investigation under this title, the 
                        administering authority shall use the 
                        most recent cost of production data 
                        that it reasonably can obtain, analyze, 
                        and verify without delaying the timely 
                        completion of the investigation. For 
                        purposes of this subparagraph, the 
                        startup period ends at the point at 
                        which the level of commercial 
                        production that is characteristic of 
                        the vessel, the producer, or the 
                        industry is achieved.
                  (D) Costs due to extraordinary circumstances 
                not included.--Costs shall not include actual 
                costs which are due to extraordinary 
                circumstances (including, but not limited to, 
                labor disputes, fire, and natural disasters) 
                and which are significantly over the cost 
                increase which the shipbuilder could have 
                reasonably anticipated and taken into account 
                at the time of sale.
          (2) Transactions disregarded.--A transaction directly 
        or indirectly between affiliated persons may be 
        disregarded if, in the case of any element of value 
        required to be considered, the amount representing that 
        element does not fairly reflect the amount usually 
        reflected in sales of a like vessel in the market under 
        consideration. If a transaction is disregarded under 
        the preceding sentence and no other transactions are 
        available for consideration, the determination of the 
        amount shall be based on the information available as 
        to what the amount would have been if the transaction 
        had occurred between persons who are not affiliated.
          (3) Major input rule.--If, in the case of a 
        transaction between affiliated persons involving the 
        production by one of such persons of a major input to 
        the subject vessel, the administering authority has 
        reasonable grounds to believe or suspect that an amount 
        represented as the value of such input is less than the 
        cost of production of such input, then the 
        administering authority may determine the value of the 
        major input on the basis of the information available 
        regarding such cost of production, if such cost is 
        greater than the amount that would be determined for 
        such input under paragraph (2).

SEC. 823. CURRENCY CONVERSION.

  (a) In General.--In an injurious pricing proceeding under 
this title, the administering authority shall convert foreign 
currencies into United States dollars using the exchange rate 
in effect on the date of sale of the subject vessel, except 
that if it is established that a currency transaction on 
forward markets is directly linked to a sale under 
consideration, the exchange rate specified with respect to such 
foreign currency in the forward sale agreement shall be used to 
convert the foreign currency.
  (b) Date of Sale.--For purposes of this section, ``date of 
sale'' means the date of the contract of sale or, where 
appropriate, the date on which the material terms of sale are 
otherwise established. If the material terms of sale are 
significantly changed after such date, the date of sale is the 
date of such change. In the case of such a change in the date 
of sale, the administering authority shall make appropriate 
adjustments to take into account any unreasonable effect on the 
injurious pricing margin due only to fluctuations in the 
exchange rate between the original date of sale and the new 
date of sale.

                         Subtitle C--Procedures

SEC. 841. HEARINGS.

  (a) Upon Request.--The administering authority and the 
Commission shall each hold a hearing in the course of an 
investigation under this title, upon the request of any party 
to the investigation, before making a final determination under 
section 805.
  (b) Procedures.--Any hearing required or permitted under this 
title shall be conducted after notice published in the Federal 
Register, and a transcript of the hearing shall be prepared and 
made available to the public. The hearing shall not be subject 
to the provisions of subchapter II of chapter 5 of title 5, 
United States Code, or to section 702 of such title.

SEC. 842. DETERMINATIONS ON THE BASIS OF THE FACTS AVAILABLE.

  (a) In General.--If--
          (1) necessary information is not available on the 
        record, or
          (2) an interested party or any other person--
                  (A) withholds information that has been 
                requested by the administering authority or the 
                Commission under this title,
                  (B) fails to provide such information by the 
                deadlines for the submission of the information 
                or in the form and manner requested, subject to 
                subsections (b)(1) and (d) of section 844,
                  (C) significantly impedes a proceeding under 
                this title, or
                  (D) provides such information but the 
                information cannot be verified as provided in 
                section 844(g),
        the administering authority and the Commission shall, 
        subject to section 844(c), use the facts otherwise 
        available in reaching the applicable determination 
        under this title.
  (b) Adverse Inferences.--If the administering authority or 
the Commission (as the case may be) finds that an interested 
party has failed to cooperate by not acting to the best of its 
ability to comply with a request for information from the 
administering authority or the Commission, the administering 
authority or the Commission (as the case may be), in reaching 
the applicable determination under this title, may use an 
inference that is adverse to the interests of that party in 
selecting from among the facts otherwise available. Such 
adverse inference may include reliance on information derived 
from--
          (1) the petition, or
          (2) any other information placed on the record.
  (c) Corroboration of Secondary Information.--When the 
administering authority or the Commission relies on secondary 
information rather than on information obtained in the course 
of an investigation under this title, the administering 
authority and the Commission, as the case may be, shall, to the 
extent practicable, corroborate that information from 
independent sources that are reasonably at their disposal.

SEC. 843. ACCESS TO INFORMATION.

  (a) Information Generally Made Available.--
          (1) Progress of investigation reports.--The 
        administering authority and the Commission shall, from 
        time to time upon request, inform the parties to an 
        investigation under this title of the progress of that 
        investigation.
          (2) Ex parte meetings.--The administering authority 
        and the Commission shall maintain a record of any ex 
        parte meeting between--
                  (A) interested parties or other persons 
                providing factual information in connection 
                with a proceeding under this title, and
                  (B) the person charged with making the 
                determination, or any person charged with 
                making a final recommendation to that person, 
                in connection with that proceeding,
        if information relating to that proceeding was 
        presented or discussed at such meeting. The record of 
        such an ex parte meeting shall include the identity of 
        the persons present at the meeting, the date, time, and 
        place of the meeting, and a summary of the matters 
        discussed or submitted. The record of the ex parte 
        meeting shall be included in the record of the 
        proceeding.
          (3) Summaries; non-proprietary submissions.--The 
        administering authority and the Commission shall 
        disclose--
                  (A) any proprietary information received in 
                the course of a proceeding under this title if 
                it is disclosed in a form which cannot be 
                associated with, or otherwise be used to 
                identify, operations of a particular person, 
                and
                  (B) any information submitted in connection 
                with a proceeding which is not designated as 
                proprietary by the person submitting it.
          (4) Maintenance of public record.--The administering 
        authority and the Commission shall maintain and make 
        available for public inspection and copying a record of 
        all information which is obtained by the administering 
        authority or the Commission, as the case may be, in a 
        proceeding under this title to the extent that public 
        disclosure of the information is not prohibited under 
        this chapter or exempt from disclosure under section 
        552 of title 5, United States Code.
  (b) Proprietary Information.--
          (1) Proprietary status maintained.--
                  (A) In general.--Except as provided in 
                subsection (a)(4) and subsection (c), 
                information submitted to the administering 
                authority or the Commission which is designated 
                as proprietary by the person submitting the 
                information shall not be disclosed to any 
                person without the consent of the person 
                submitting the information, other than--
                          (i) to an officer or employee of the 
                        administering authority or the 
                        Commission who is directly concerned 
                        with carrying out the investigation in 
                        connection with which the information 
                        is submitted or any other proceeding 
                        under this title covering the same 
                        subject vessel, or
                          (ii) to an officer or employee of the 
                        United States Customs Service who is 
                        directly involved in conducting an 
                        investigation regarding fraud under 
                        this title.
                  (B) Additional requirements.--The 
                administering authority and the Commission 
                shall require that information for which 
                proprietary treatment is requested be 
                accompanied by--
                          (i) either--
                                  (I) a nonproprietary summary 
                                in sufficient detail to permit 
                                a reasonable understanding of 
                                the substance of the 
                                information submitted in 
                                confidence, or
                                  (II) a statement that the 
                                information is not susceptible 
                                to summary, accompanied by a 
                                statement of the reasons in 
                                support of the contention, and
                          (ii) either--
                                  (I) a statement which permits 
                                the administering authority or 
                                the Commission to release under 
                                administrative protective 
                                order, in accordance with 
                                subsection (c), the information 
                                submitted in confidence, or
                                  (II) a statement to the 
                                administering authority or the 
                                Commission that the business 
                                proprietary information is of a 
                                type that should not be 
                                released under administrative 
                                protective order.
          (2) Unwarranted designation.--If the administering 
        authority or the Commission determines, on the basis of 
        the nature and extent of the information or its 
        availability from public sources, that designation of 
        any information as proprietary is unwarranted, then it 
        shall notify the person who submitted it and ask for an 
        explanation of the reasons for the designation. Unless 
        that person persuades the administering authority or 
        the Commission that the designation is warranted, or 
        withdraws the designation, the administering authority 
        or the Commission, as the case may be, shall return it 
        to the party submitting it. In a case in which the 
        administering authority or the Commission returns the 
        information to the person submitting it, the person may 
        thereafter submit other material concerning the subject 
        matter of the returned information if the submission is 
        made within the time otherwise provided for submitting 
        such material.
  (c) Limited Disclosure of Certain Proprietary Information 
Under Protective Order.--
          (1) Disclosure by administering authority or 
        commission.--
                  (A) In general.--Upon receipt of an 
                application (before or after receipt of the 
                information requested) which describes in 
                general terms the information requested and 
                sets forth the reasons for the request, the 
                administering authority or the Commission shall 
                make all business proprietary information 
                presented to, or obtained by it, during a 
                proceeding under this title (except privileged 
                information, classified information, and 
                specific information of a type for which there 
                is a clear and compelling need to withhold from 
                disclosure) available to all interested parties 
                who are parties to the proceeding under a 
                protective order described in subparagraph (B), 
                regardless of when the information is submitted 
                during the proceeding. Customer names (other 
                than the name of the United States buyer of the 
                subject vessel) obtained during any 
                investigation which requires a determination 
                under section 805(b) may not be disclosed by 
                the administering authority under protective 
                order until either an order is published under 
                section 806(a) as a result of the investigation 
                or the investigation is suspended or 
                terminated. The Commission may delay disclosure 
                of customer names (other than the name of the 
                United States buyer of the subject vessel) 
                under protective order during any such 
                investigation until a reasonable time before 
                any hearing provided under section 841 is held.
                  (B) Protective order.--The protective order 
                under which information is made available shall 
                contain such requirements as the administering 
                authority or the Commission may determine by 
                regulation to be appropriate. The administering 
                authority and the Commission shall provide by 
                regulation for such sanctions as the 
                administering authority and the Commission 
                determine to be appropriate, including 
                disbarment from practice before the agency.
                  (C) Time limitations on determinations.--The 
                administering authority or the Commission, as 
                the case may be, shall determine whether to 
                make information available under this 
                paragraph--
                          (i) not later than 14 days (7 days if 
                        the submission pertains to a proceeding 
                        under section 803(a)) after the date on 
                        which the information is submitted, or
                          (ii) if--
                                  (I) the person submitting the 
                                information raises objection to 
                                its release, or
                                  (II) the information is 
                                unusually voluminous or 
                                complex,
                        not later than 30 days (10 days if the 
                        submission pertains to a proceeding 
                        under section 803(a)) after the date on 
                        which the information is submitted.
                  (D) Availability after determination.--If the 
                determination under subparagraph (C) is 
                affirmative, then--
                          (i) the business proprietary 
                        information submitted to the 
                        administering authority or the 
                        Commission on or before the date of the 
                        determination shall be made available, 
                        subject to the terms and conditions of 
                        the protective order, on such date, and
                          (ii) the business proprietary 
                        information submitted to the 
                        administering authority or the 
                        Commission after the date of the 
                        determination shall be served as 
                        required by subsection (d).
                  (E) Failure to disclose.--If a person 
                submitting information to the administering 
                authority refuses to disclose business 
                proprietary information which the administering 
                authority determines should be released under a 
                protective order described in subparagraph (B), 
                the administering authority shall return the 
                information, and any nonconfidential summary 
                thereof, to the person submitting the 
                information and summary and shall not consider 
                either.
          (2) Disclosure under court order.--If the 
        administering authority or the Commission denies a 
        request for information under paragraph (1), then 
        application may be made to the United States Court of 
        International Trade for an order directing the 
        administering authority or the Commission, as the case 
        may be, to make the information available. After 
        notification of all parties to the investigation and 
        after an opportunity for a hearing on the record, the 
        court may issue an order, under such conditions as the 
        court deems appropriate, which shall not have the 
        effect of stopping or suspending the investigation, 
        directing the administering authority or the Commission 
        to make all or a portion of the requested information 
        described in the preceding sentence available under a 
        protective order and setting forth sanctions for 
        violation of such order if the court finds that, under 
        the standards applicable in proceedings of the court, 
        such an order is warranted, and that--
                  (A) the administering authority or the 
                Commission has denied access to the information 
                under subsection (b)(1),
                  (B) the person on whose behalf the 
                information is requested is an interested party 
                who is a party to the investigation in 
                connection with which the information was 
                obtained or developed, and
                  (C) the party which submitted the information 
                to which the request relates has been notified, 
                in advance of the hearing, of the request made 
                under this section and of its right to appear 
                and be heard.
  (d) Service.--Any party submitting written information, 
including business proprietary information, to the 
administering authority or the Commission during a proceeding 
shall, at the same time, serve the information upon all 
interested parties who are parties to the proceeding, if the 
information is covered by a protective order. The administering 
authority or the Commission shall not accept any such 
information that is not accompanied by a certificate of service 
and a copy of the protective order version of the document 
containing the information. Business proprietary information 
shall only be served upon interested parties who are parties to 
the proceeding that are subject to protective order, except 
that a nonconfidential summary thereof shall be served upon all 
other interested parties who are parties to the proceeding.
  (e) Information Relating to Violations of Protective Orders 
and Sanctions.--The administering authority and the Commission 
may withhold from disclosure any correspondence, private 
letters of reprimand, settlement agreements, and documents and 
files compiled in relation to investigations and actions 
involving a violation or possible violation of a protective 
order issued under subsection (c), and such information shall 
be treated as information described in section 552(b)(3) of 
title 5, United States Code.
  (f) Opportunity for Comment by Vessel Buyers.--The 
administering authority and the Commission shall provide an 
opportunity for buyers of subject vessels to submit relevant 
information to the administering authority concerning a sale at 
less than fair value or countermeasures, and to the Commission 
concerning material injury by reason of the sale of a vessel at 
less than fair value.
  (g) Publication of Determinations; Requirements for Final 
Determinations.--
          (1) In general.--Whenever the administering authority 
        makes a determination under section 802 whether to 
        initiate an investigation, or the administering 
        authority or the Commission makes a preliminary 
        determination under section 803, a final determination 
        under section 805, a determination under subsection 
        (b), (c), (d), (e)(3)(B)(ii), (g), or (i) of section 
        807, or a determination to suspend an investigation 
        under this title, the administering authority or the 
        Commission, as the case may be, shall publish the facts 
        and conclusions supporting that determination, and 
        shall publish notice of that determination in the 
        Federal Register.
          (2) Contents of notice or determination.--The notice 
        or determination published under paragraph (1) shall 
        include, to the extent applicable--
                  (A) in the case of a determination of the 
                administering authority--
                          (i) the names of the foreign producer 
                        and the country of origin of the 
                        subject vessel,
                          (ii) a description sufficient to 
                        identify the subject vessel,
                          (iii) with respect to an injurious 
                        pricing charge, the injurious pricing 
                        margin established and a full 
                        explanation of the methodology used in 
                        establishing such margin,
                          (iv) with respect to countermeasures, 
                        the scope and duration of 
                        countermeasures and, if applicable, any 
                        changes thereto, and
                          (v) the primary reasons for the 
                        determination, and
                  (B) in the case of a determination of the 
                Commission--
                          (i) considerations relevant to the 
                        determination of injury, and
                          (ii) the primary reasons for the 
                        determination.
          (3) Additional requirements for final 
        determinations.--In addition to the requirements set 
        forth in paragraph (2)--
                  (A) the administering authority shall include 
                in a final determination under section 805 or 
                807(c) an explanation of the basis for its 
                determination that addresses relevant 
                arguments, made by interested parties who are 
                parties to the investigation, concerning the 
                establishment of the injurious pricing charge 
                with respect to which the determination is 
                made, and
                  (B) the Commission shall include in a final 
                determination of injury an explanation of the 
                basis for its determination that addresses 
                relevant arguments that are made by interested 
                parties who are parties to the investigation 
                concerning the effects and impact on the 
                industry of the sale of the subject vessel.

SEC. 844. CONDUCT OF INVESTIGATIONS.

  (a) Certification of Submissions.--Any person providing 
factual information to the administering authority or the 
Commission in connection with a proceeding under this title on 
behalf of the petitioner or any other interested party shall 
certify that such information is accurate and complete to the 
best of that person's knowledge.
  (b) Difficulties in Meeting Requirements.--
          (1) Notification by interested party.--If an 
        interested party, promptly after receiving a request 
        from the administering authority or the Commission for 
        information, notifies the administering authority or 
        the Commission (as the case may be) that such party is 
        unable to submit the information requested in the 
        requested form and manner, together with a full 
        explanation and suggested alternative forms in which 
        such party is able to submit the information, the 
        administering authority or the Commission (as the case 
        may be) shall consider the ability of the interested 
        party to submit the information in the requested form 
        and manner and may modify such requirements to the 
        extent necessary to avoid imposing an unreasonable 
        burden on that party.
          (2) Assistance to interested parties.--The 
        administering authority and the Commission shall take 
        into account any difficulties experienced by interested 
        parties, particularly small companies, in supplying 
        information requested by the administering authority or 
        the Commission in connection with investigations under 
        this title, and shall provide to such interested 
        parties any assistance that is practicable in supplying 
        such information.
  (c) Deficient Submissions.--If the administering authority or 
the Commission determines that a response to a request for 
information under this title does not comply with the request, 
the administering authority or the Commission (as the case may 
be) shall promptly inform the person submitting the response of 
the nature of the deficiency and shall, to the extent 
practicable, provide that person with an opportunity to remedy 
or explain the deficiency in light of the time limits 
established for the completion of investigations or reviews 
under this title. If that person submits further information in 
response to such deficiency and either--
          (1) the administering authority or the Commission (as 
        the case may be) finds that such response is not 
        satisfactory, or
          (2) such response is not submitted within the 
        applicable time limits,
then the administering authority or the Commission (as the case 
may be) may, subject to subsection (d), disregard all or part 
of the original and subsequent responses.
  (d) Use of Certain Information.--In reaching a determination 
under section 803, 805, or 807, the administering authority and 
the Commission shall not decline to consider information that 
is submitted by an interested party and is necessary to the 
determination but does not meet all the applicable requirements 
established by the administering authority or the Commission 
if--
          (1) the information is submitted by the deadline 
        established for its submission,
          (2) the information can be verified,
          (3) the information is not so incomplete that it 
        cannot serve as a reliable basis for reaching the 
        applicable determination,
          (4) the interested party has demonstrated that it 
        acted to the best of its ability in providing the 
        information and meeting the requirements established by 
        the administering authority or the Commission with 
        respect to the information, and
          (5) the information can be used without undue 
        difficulties.
  (e) Nonacceptance of Submissions.--If the administering 
authority or the Commission declines to accept into the record 
any information submitted in an investigation under this title, 
it shall, to the extent practicable, provide to the person 
submitting the information a written explanation of the reasons 
for not accepting the information.
  (f) Public Comment on Information.--Information that is 
submitted on a timely basis to the administering authority or 
the Commission during the course of a proceeding under this 
title shall be subject to comment by other parties within such 
reasonable time as the administering authority or the 
Commission shall provide. The administering authority and the 
Commission, before making a final determination under section 
805 or 807, shall cease collecting information and shall 
provide the parties with a final opportunity to comment on the 
information obtained by the administering authority or the 
Commission (as the case may be) upon which the parties have not 
previously had an opportunity to comment. Comments containing 
new factual information shall be disregarded.
  (g) Verification.--The administering authority shall verify 
all information relied upon in making a final determination 
under section 805.

SEC. 845. ADMINISTRATIVE ACTION FOLLOWING SHIPBUILDING AGREEMENT PANEL 
                    REPORTS.

  (a) Action by United States International Trade Commission.--
           (1) Advisory report.--If a dispute settlement panel 
        under the Shipbuilding Agreement finds in a report that 
        an action by the Commission in connection with a 
        particular proceeding under this title is not in 
        conformity with the obligations of the United States 
        under the Shipbuilding Agreement, the Trade 
        Representative may request the Commission to issue an 
        advisory report on whether this title permits the 
        Commission to take steps in connection with the 
        particular proceeding that would render its action not 
        inconsistent with the findings of the panel concerning 
        those obligations. The Trade Representative shall 
        notify the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the 
        Senate of such request.
          (2) Time limits for report.--The Commission shall 
        transmit its report under paragraph (1) to the Trade 
        Representative within 30 calendar days after the Trade 
        Representative requests the report.
          (3) Consultations on request for commission 
        determination.--If a majority of the Commissioners 
        issues an affirmative report under paragraph (1), the 
        Trade Representatives shall consult with the 
        congressional committees listed in paragraph (1) 
        concerning the matter.
          (4) Commission determination.--Notwithstanding any 
        other provision of this title, if a majority of the 
        Commissioners issues an affirmative report under 
        paragraph (1), the Commission, upon the written request 
        of the Trade Representative, shall issue a 
        determination in connection with the particular 
        proceeding that would render the Commission's action 
        described in paragraph (1) not inconsistent with the 
        findings of the panel. The Commission shall issue its 
        determination not later than 120 calendar days after 
        the request from the Trade Representative is made.
          (5) Consultations on implementation of commission 
        determination.--The Trade Representative shall consult 
        with the congressional committees listed in paragraph 
        (1) before the Commission's determination under 
        paragraph (4) is implemented.
          (6) Revocation of order.--If, by virtue of the 
        Commission's determination under paragraph (4), an 
        injurious pricing order is no longer supported by an 
        affirmative Commission determination under this title, 
        the Trade Representative may, after consulting with the 
        congressional committees under paragraph (5), direct 
        the administering authority to revoke the injurious 
        pricing order.
  (b) Action by Administering Authority.--
          (1) Consultations with administering authority and 
        congressional committees.--Promptly after a report or 
        other determination by a dispute settlement panel under 
        the Shipbuilding Agreement is issued that contains 
        findings that--
                  (A) an action by the administering authority 
                in a proceeding under this title is not in 
                conformity with the obligations of the United 
                States under the Shipbuilding Agreement,
                  (B) the due date for payment of an injurious 
                pricing charge contained in an order issued 
                under section 806 should be amended,
                  (C) countermeasures provided for in an order 
                issued under section 807 should be 
                provisionally suspended or reduced pending the 
                final decision of the panel, or
                  (D) the scope or duration of countermeasures 
                imposed under section 807 should be narrowed or 
                shortened,
        the Trade Representative shall consult with the 
        administering authority and the congressional 
        committees listed in subsection (a)(1) on the matter.
          (2) Determination by administering authority.--
        Notwithstanding any other provision of this title, the 
        administering authority shall, in response to a written 
        request from the Trade Representative, issue a 
        determination, or an amendment to or suspension of an 
        injurious pricing or countermeasure order, as the case 
        may be, in connection with the particular proceeding 
        that would render the administering authority's action 
        described in paragraph (1) not inconsistent with the 
        findings of the panel.
          (3) Time limits for determinations.--The 
        administering authority shall issue its determination, 
        amendment, or suspension under paragraph (2)--
                  (A) with respect to a matter described in 
                subparagraph (A) of paragraph (1), within 180 
                calendar days after the request from the Trade 
                Representative is made, and
                  (B) with respect to a matter described in 
                subparagraph (B), (C), or (D) of paragraph (1), 
                within 15 calendar days after the request from 
                the Trade Representative is made.
          (4) Consultations before implementation.--Before the 
        administering authority implements any determination, 
        amendment, or suspension under paragraph (2), the Trade 
        Representative shall consult with the administering 
        authority and the congressional committees listed in 
        subsection (a)(1) with respect to such determination, 
        amendment, or suspension.
          (5) Implementation of determination.--The Trade 
        Representative may, after consulting with the 
        administering authority and the congressional 
        committees under paragraph (4), direct the 
        administering authority to implement, in whole or in 
        part, the determination, amendment, or suspension made 
        under paragraph (2).
          (6) Implementation of determination; notice of 
        implementation.--The administering authority shall 
        implement the determination, amendment, or suspension 
        under paragraph (2)--
                  (A) with respect to a matter described in 
                subparagraph (A) of paragraph (1), only if the 
                injurious pricing margin determined under 
                paragraph (2) differs from the injurious 
                pricing margin in the determination reviewed by 
                the panel, and
                  (B) with respect to a matter described in 
                subparagraph (B), (C), or (D) of paragraph (1), 
                upon issuance of the determination, amendment, 
                or suspension under paragraph (2).
        The administering authority shall publish notice of 
        such implementation in the Federal Register.
  (c) Opportunity for Comment by Interested Parties.--Before 
issuing a determination, amendment, or suspension, the 
administering authority, in a matter described in subsection 
(b)(1)(A), or the Commission, in a matter described in 
subsection (a)(1), as the case may be, shall provide interested 
parties with an opportunity to submit written comments and, in 
appropriate cases, may hold a hearing, with respect to the 
determination.

                        Subtitle D--Definitions

SEC. 861. DEFINITIONS.

  For purposes of this title:
          (1) Administering authority.--The term 
        ``administering authority'' means the Secretary of 
        Commerce, or any other officer of the United States to 
        whom the responsibility for carrying out the duties of 
        the administering authority under this title are 
        transferred by law.
          (2) Commission.--The term ``Commission'' means the 
        United States International Trade Commission.
          (3) Country.--The term ``country'' means a foreign 
        country, a political subdivision, dependent territory, 
        or possession of a foreign country and, except as 
        provided in paragraph (16)(E)(iii), may not include an 
        association of 2 or more foreign countries, political 
        subdivisions, dependent territories, or possessions of 
        countries into a customs union outside the United 
        States.
          (4) Industry.--
                  (A) In general.--Except as used in section 
                808, the term ``industry'' means the producers 
                as a whole of a domestic like vessel, or those 
                producers whose collective capability to 
                produce a domestic like vessel constitutes a 
                major proportion of the total domestic 
                capability to produce a domestic like vessel.
                  (B) Producer.--A ``producer'' of a domestic 
                like vessel includes an entity that is 
                producing the domestic like vessel and an 
                entity with the capability to produce the 
                domestic like vessel.
                  (C) Capability to produce a domestic like 
                vessel.--A producer has the ``capability to 
                produce a domestic like vessel'' if it is 
                capable of producing a domestic like vessel 
                with its present facilities or could adapt its 
                facilities in a timely manner to produce a 
                domestic like vessel.
                  (D) Related parties.--(i) In an investigation 
                under this title, if a producer of a domestic 
                like vessel and the foreign producer, seller 
                (other than the foreign producer), or United 
                States buyer of the subject vessel are related 
                parties, or if a producer of a domestic like 
                vessel is also a United States buyer of the 
                subject vessel, the domestic producer may, in 
                appropriate circumstances, be excluded from the 
                industry.
                  (ii) For purposes of clause (i), a domestic 
                producer and the foreign producer, seller, or 
                United States buyer shall be considered to be 
                related parties, if--
                          (I) the domestic producer directly or 
                        indirectly controls the foreign 
                        producer, seller or United States 
                        buyer,
                          (II) the foreign producer, seller, or 
                        United States buyer directly or 
                        indirectly controls the domestic 
                        producer,
                          (III) a third party directly or 
                        indirectly controls the domestic 
                        producer and the foreign producer, 
                        seller, or United States buyer, or
                          (IV) the domestic producer and the 
                        foreign producer, seller, or United 
                        States buyer directly or indirectly 
                        control a third party and there is 
                        reason to believe that the relationship 
                        causes the producer to act differently 
                        than a nonrelated producer.
                For purposes of this subparagraph, a party 
                shall be considered to directly or indirectly 
                control another party if the party is legally 
                or operationally in a position to exercise 
                restraint or direction over the other party.
                  (E) Product lines.--In an investigation under 
                this title, the effect of the sale of the 
                subject vessel shall be assessed in relation to 
                the United States production (or production 
                capability) of a domestic like vessel if 
                available data permit the separate 
                identification of production (or production 
                capability) in terms of such criteria as the 
                production process or the producer's profits. 
                If the domestic production (or production 
                capability) of a domestic like vessel has no 
                separate identity in terms of such criteria, 
                then the effect of the sale shall be assessed 
                by the examination of the production (or 
                production capability) of the narrowest group 
                or range of vessels, which includes a domestic 
                like vessel, for which the necessary 
                information can be provided.
          (5) Buyer.--The term ``buyer'' means any person who 
        acquires an ownership interest in a vessel, including 
        by way of lease or long-term bareboat charter, in 
        conjunction with the original transfer from the 
        producer, either directly or indirectly, including an 
        individual or company which owns or controls a buyer. 
        There may be more than one buyer of any one vessel.
          (6) United states buyer.--The term ``United States 
        buyer'' means a buyer that is any of the following:
                  (A) A United States citizen.
                  (B) A juridical entity, including any 
                corporation, company, association, or other 
                organization, that is legally constituted under 
                the laws and regulations of the United States 
                or a political subdivision thereof, regardless 
                of whether the entity is organized for 
                pecuniary gain, privately or government owned, 
                or organized with limited or unlimited 
                liability.
                  (C) A juridical entity that is owned or 
                controlled by nationals or entities described 
                in subparagraphs (A) and (B). For the purposes 
                of this subparagraph--
                          (i) the term ``own'' means having 
                        more than a 50 percent interest, and
                          (ii) the term ``control'' means the 
                        actual ability to have substantial 
                        influence on corporate behavior, and 
                        control is presumed to exist where 
                        there is at least a 25 percent 
                        interest.
                If ownership of a company is established under 
                clause (i), other control is presumed not to 
                exist unless it is otherwise established.
          (7) Ownership interest.--An ``ownership interest'' in 
        a vessel includes any contractual or proprietary 
        interest which allows the beneficiary or beneficiaries 
        of such interest to take advantage of the operation of 
        the vessel in a manner substantially comparable to the 
        way in which an owner may benefit from the operation of 
        the vessel. In determining whether such substantial 
        comparability exists, the administering authority shall 
        consider--
                  (A) the terms and circumstances of the 
                transaction which conveys the interest,
                  (B) commercial practice,
                  (C) whether the vessel subject to the 
                transaction is integrated into the operations 
                of the beneficiary or beneficiaries, and
                  (D) whether in practice there is a likelihood 
                that the beneficiary or beneficiaries of such 
                interests will take advantage of and the risk 
                for the operation of the vessel for a 
                significant part of the life-time of the 
                vessel.
          (8) Vessel.--
                  (A) In general.--Except as otherwise 
                specifically provided under international 
                agreements, the term ``vessel'' means--
                          (i) a self-propelled seagoing vessel 
                        of 100 gross tons or more used for 
                        transportation of goods or persons or 
                        for performance of a specialized 
                        service (including, but not limited to, 
                        ice breakers and dredgers), and
                          (ii) a tug of 365 kilowatts or more,
                that is produced in a Shipbuilding Agreement 
                Party or a country that is not a Shipbuilding 
                Agreement Party and not a WTO member.
                  (B) Exclusions.--The term ``vessel'' does not 
                include--
                          (i) any fishing vessel destined for 
                        the fishing fleet of the country in 
                        which the vessel is built,
                          (ii) any military vessel, and
                          (iii) any vessel sold before the date 
                        that the Shipbuilding Agreement enters 
                        into force with respect to the United 
                        States, except that any vessel sold 
                        after December 21, 1994, for delivery 
                        more than 5 years after the date of the 
                        contract of sale shall be a ``vessel'' 
                        for purposes of this title unless the 
                        shipbuilder demonstrates to the 
                        administering authority that the 
                        extended delivery date was for normal 
                        commercial reasons and not to avoid 
                        applicability of this title.
                  (C) Self-propelled seagoing vessel.--A vessel 
                is ``self-propelled seagoing'' if its permanent 
                propulsion and steering provide it all the 
                characteristics of self-navigability in the 
                high seas.
                  (D) Military vessel.--A ``military vessel'' 
                is a vessel which, according to its basic 
                structural characteristics and ability, is 
                intended to be used exclusively for military 
                purposes.
          (9) Like vessel.--The term ``like vessel'' means a 
        vessel of the same type, same purpose, and approximate 
        size as the subject vessel and possessing 
        characteristics closely resembling those of the subject 
        vessel.
          (10) Domestic like vessel.--The term ``domestic like 
        vessel'' means a like vessel produced in the United 
        States.
          (11) Foreign like vessel.--Except as used in section 
        822(e)(1)(B)(ii)(II), the term ``foreign like vessel'' 
        means a like vessel produced by the foreign producer of 
        the subject vessel for sale in the producer's domestic 
        market or in a third country.
          (12) Same general category of vessel.--The term 
        ``same general category of vessel'' means a vessel of 
        the same type and purpose as the subject vessel, but of 
        a significantly different size.
          (13) Subject vessel.--The term ``subject vessel'' 
        means a vessel subject to investigation under section 
        801 or 808.
          (14) Foreign producer.--The term ``foreign producer'' 
        means the producer or producers of the subject vessel.
          (15) Exporting country.--The term ``exporting 
        country'' means the country in which the subject vessel 
        was built.
          (16) Material injury.--
                  (A) In general.--The term ``material injury'' 
                means harm which is not inconsequential, 
                immaterial, or unimportant.
                  (B) Sale and consequent impact.--In making 
                determinations under sections 803(a) and 
                805(b), the Commission in each case--
                          (i) shall consider--
                                  (I) the sale of the subject 
                                vessel,
                                  (II) the effect of the sale 
                                of the subject vessel on prices 
                                in the United States for a 
                                domestic like vessel, and
                                  (III) the impact of the sale 
                                of the subject vessel on 
                                domestic producers of the 
                                domestic like vessel, but only 
                                in the context of production 
                                operations within the United 
                                States, and
                          (ii) may consider such other economic 
                        factors as are relevant to the 
                        determination regarding whether there 
                        is or has been material injury by 
                        reason of the sale of the subject 
                        vessel.
                In the notification required under section 
                805(d), the Commission shall explain its 
                analysis of each factor considered under clause 
                (i), and identify each factor considered under 
                clause (ii) and explain in full its relevance 
                to the determination.
                  (C) Evaluation of relevant factors.--For 
                purposes of subparagraph (B)--
                          (i) Sale of the subject vessel.--In 
                        evaluating the sale of the subject 
                        vessel, the Commission shall consider 
                        whether the sale, either in absolute 
                        terms or relative to production or 
                        demand in the United States, in terms 
                        of either volume or value, is or has 
                        been significant.
                          (ii) Price.--In evaluating the effect 
                        of the sale of the subject vessel on 
                        prices, the Commission shall consider 
                        whether--
                                  (I) there has been 
                                significant price underselling 
                                of the subject vessel as 
                                compared with the price of a 
                                domestic like vessel, and
                                  (II) the effect of the sale 
                                of the subject vessel otherwise 
                                depresses or has depressed 
                                prices to a significant degree 
                                or prevents or has prevented 
                                price increases, which 
                                otherwise would have occurred, 
                                to a significant degree.
                          (iii) Impact on affected domestic 
                        industry.--In examining the impact 
                        required to be considered under 
                        subparagraph (B)(i)(III), the 
                        Commission shall evaluate all relevant 
                        economic factors which have a bearing 
                        on the state of the industry in the 
                        United States, including, but not 
                        limited to--
                                  (I) actual and potential 
                                decline in output, sales, 
                                market share, profits, 
                                productivity, return on 
                                investments, and utilization of 
                                capacity,
                                  (II) factors affecting 
                                domestic prices, including with 
                                regard to sales,
                                  (III) actual and potential 
                                negative effects on cash flow, 
                                employment, wages, growth, 
                                ability to raise capital, and 
                                investment,
                                  (IV) actual and potential 
                                negative effects on the 
                                existing development and 
                                production efforts of the 
                                domestic industry, including 
                                efforts to develop a derivative 
                                or more advanced version of a 
                                domestic like vessel, and
                                  (V) the magnitude of the 
                                injurious pricing margin.
                        The Commission shall evaluate all 
                        relevant economic factors described in 
                        this clause within the context of the 
                        business cycle and conditions of 
                        competition that are distinctive to the 
                        affected industry.
                  (D) Standard for determination.--The presence 
                or absence of any factor which the Commission 
                is required to evaluate under subparagraph (C) 
                shall not necessarily give decisive guidance 
                with respect to the determination by the 
                Commission of material injury.
                  (E) Threat of material injury.--
                          (i) In general.--In determining 
                        whether an industry in the United 
                        States is threatened with material 
                        injury by reason of the sale of the 
                        subject vessel, the Commission shall 
                        consider, among other relevant economic 
                        factors--
                                  (I) any existing unused 
                                production capacity or 
                                imminent, substantial increase 
                                in production capacity in the 
                                exporting country indicating 
                                the likelihood of substantially 
                                increased sales of a foreign 
                                like vessel to United States 
                                buyers, taking into account the 
                                availability of other export 
                                markets to absorb any 
                                additional exports,
                                  (II) whether the sale of a 
                                foreign like vessel or other 
                                factors indicate the likelihood 
                                of significant additional sales 
                                to United States buyers,
                                  (III) whether sale of the 
                                subject vessel or sale of a 
                                foreign like vessel by the 
                                foreign producer are at prices 
                                that are likely to have a 
                                significant depressing or 
                                suppressing effect on domestic 
                                prices, and are likely to 
                                increase demand for further 
                                sales,
                                  (IV) the potential for 
                                product-shifting if production 
                                facilities in the exporting 
                                country, which can presently be 
                                used to produce a foreign like 
                                vessel or could be adapted in a 
                                timely manner to produce a 
                                foreign like vessel, are 
                                currently being used to produce 
                                other types of vessels,
                                  (V) the actual and potential 
                                negative effects on the 
                                existing development and 
                                production efforts of the 
                                domestic industry, including 
                                efforts to develop a derivative 
                                or more advanced version of a 
                                domestic like vessel, and
                                  (VI) any other demonstrable 
                                adverse trends that indicate 
                                the probability that there is 
                                likely to be material injury by 
                                reason of the sale of the 
                                subject vessel.
                          (ii) Basis for determination.--The 
                        Commission shall consider the factors 
                        set forth in clause (i) as a whole. The 
                        presence or absence of any factor which 
                        the Commission is required to consider 
                        under clause (i) shall not necessarily 
                        give decisive guidance with respect to 
                        the determination. Such a determination 
                        may not be made on the basis of mere 
                        conjecture or supposition.
                          (iii) Effect of injurious pricing in 
                        third-country markets.--
                                  (I) In general.--The 
                                Commission shall consider 
                                whether injurious pricing in 
                                the markets of foreign 
                                countries (as evidenced by 
                                injurious pricing findings or 
                                injurious pricing remedies of 
                                other Shipbuilding Agreement 
                                Parties, or antidumping 
                                determinations of, or measures 
                                imposed by, other countries, 
                                against a like vessel produced 
                                by the producer under 
                                investigation) suggests a 
                                threat of material injury to 
                                the domestic industry. In the 
                                course of its investigation, 
                                the Commission shall request 
                                information from the foreign 
                                producer or United States buyer 
                                concerning this issue.
                                  (II) European communities.--
                                For purposes of this clause, 
                                the European Communities as a 
                                whole shall be treated as a 
                                single foreign country.
                  (F) Cumulation for determining material 
                injury.--
                          (i) In general.--For purposes of 
                        clauses (i) and (ii) of subparagraph 
                        (C), and subject to clause (ii) of this 
                        subparagraph, the Commission shall 
                        cumulatively assess the effects of 
                        sales of foreign like vessels from all 
                        foreign producers with respect to 
                        which--
                                  (I) petitions were filed 
                                under section 802(b) on the 
                                same day,
                                  (II) investigations were 
                                initiated under section 802(a) 
                                on the same day, or
                                  (III) petitions were filed 
                                under section 802(b) and 
                                investigations were initiated 
                                under section 802(a) on the 
                                same day,
                        if, with respect to such vessels, the 
                        foreign producers compete with each 
                        other and with producers of a domestic 
                        like vessel in the United States 
                        market.
                          (ii) Exceptions.--The Commission 
                        shall not cumulatively assess the 
                        effects of sales under clause (i)--
                                  (I) with respect to which the 
                                administering authority has 
                                made a preliminary negative 
                                determination, unless the 
                                administering authority 
                                subsequently made a final 
                                affirmative determination with 
                                respect to those sales before 
                                the Commission's final 
                                determination is made, or
                                  (II) from any producer with 
                                respect to which the 
                                investigation has been 
                                terminated.
                          (iii) Records in final 
                        investigations.--In each final 
                        determination in which it cumulatively 
                        assesses the effects of sales under 
                        clause (i), the Commission may make its 
                        determinations based on the record 
                        compiled in the first investigation in 
                        which it makes a final determination, 
                        except that when the administering 
                        authority issues its final 
                        determination in a subsequently 
                        completed investigation, the Commission 
                        shall permit the parties in the 
                        subsequent investigation to submit 
                        comments concerning the significance of 
                        the administering authority's final 
                        determination, and shall include such 
                        comments and the administering 
                        authority's final determination in the 
                        record for the subsequent 
                        investigation.
                  (G) Cumulation for determining threat of 
                material injury.--To the extent practicable and 
                subject to subparagraph (F)(ii), for purposes 
                of clause (i) (II) and (III) of subparagraph 
                (E), the Commission may cumulatively assess the 
                effects of sales of like vessels from all 
                countries with respect to which--
                          (i) petitions were filed under 
                        section 802(b) on the same day,
                          (ii) investigations were initiated 
                        under section 802(a) on the same day, 
                        or
                          (iii) petitions were filed under 
                        section 802(b) and investigations were 
                        initiated under section 802(a) on the 
                        same day,
                if, with respect to such vessels, the foreign 
                producers compete with each other and with 
                producers of a domestic like vessel in the 
                United States market.
          (17) Interested party.--The term ``interested party'' 
        means, in a proceeding under this title--
                  (A)(i) the foreign producer, seller (other 
                than the foreign producer), and the United 
                States buyer of the subject vessel, or
                  (ii) a trade or business association a 
                majority of the members of which are the 
                foreign producer, seller, or United States 
                buyer of the subject vessel,
                  (B) the government of the country in which 
                the subject vessel is produced or manufactured,
                  (C) a producer that is a member of an 
                industry,
                  (D) a certified union or recognized union or 
                group of workers which is representative of an 
                industry,
                  (E) a trade or business association a 
                majority of whose members are producers in an 
                industry,
                  (F) an association, a majority of whose 
                members is composed of interested parties 
                described in subparagraph (C), (D), or (E), and
                  (G) for purposes of section 807, a purchaser 
                who, after the effective date of an order 
                issued under that section, entered into a 
                contract of sale with the foreign producer that 
                is subject to the order.
          (18) Affirmative determinations by divided 
        commission.--If the Commissioners voting on a 
        determination by the Commission are evenly divided as 
        to whether the determination should be affirmative or 
        negative, the Commission shall be deemed to have made 
        an affirmative determination. For the purpose of 
        applying this paragraph when the issue before the 
        Commission is to determine whether there is or has 
        been--
                  (A) material injury to an industry in the 
                United States,
                  (B) threat of material injury to such an 
                industry, or
                  (C) material retardation of the establishment 
                of an industry in the United States,
        by reason of the sale of the subject vessel, an 
        affirmative vote on any of the issues shall be treated 
        as a vote that the determination should be affirmative.
          (19) Ordinary course of trade.--The term ``ordinary 
        course of trade'' means the conditions and practices 
        which, for a reasonable time before the sale of the 
        subject vessel, have been normal in the shipbuilding 
        industry with respect to a like vessel. The 
        administering authority shall consider the following 
        sales and transactions, among others, to be outside the 
        ordinary course of trade:
                  (A) Sales disregarded under section 
                822(b)(1).
                  (B) Transactions disregarded under section 
                822(f)(2).
          (20) Nonmarket economy country.--
                  (A) In general.--The term ``nonmarket economy 
                country'' means any foreign country that the 
                administering authority determines does not 
                operate on market principles of cost or pricing 
                structures, so that sales of vessels in such 
                country do not reflect the fair value of the 
                vessels.
                  (B) Factors to be considered.--In making 
                determinations under subparagraph (A) the 
                administering authority shall take into 
                account--
                          (i) the extent to which the currency 
                        of the foreign country is convertible 
                        into the currency of other countries,
                          (ii) the extent to which wage rates 
                        in the foreign country are determined 
                        by free bargaining between labor and 
                        management,
                          (iii) the extent to which joint 
                        ventures or other investments by firms 
                        of other foreign countries are 
                        permitted in the foreign country,
                          (iv) the extent of government 
                        ownership or control of the means of 
                        production,
                          (v) the extent of government control 
                        over the allocation of resources and 
                        over the price and output decisions of 
                        enterprises, and
                          (vi) such other factors as the 
                        administering authority considers 
                        appropriate.
                  (C) Determination in effect.--
                          (i) Any determination that a foreign 
                        country is a nonmarket economy country 
                        shall remain in effect until revoked by 
                        the administering authority.
                          (ii) The administering authority may 
                        make a determination under subparagraph 
                        (A) with respect to any foreign country 
                        at any time.
                  (D) Determinations not in issue.--
                Notwithstanding any other provision of law, any 
                determination made by the administering 
                authority under subparagraph (A) shall not be 
                subject to judicial review in any investigation 
                conducted under subtitle A.
          (21) Shipbuilding agreement.--The term ``Shipbuilding 
        Agreement'' means The Agreement Respecting Normal 
        Competitive Conditions in the Commercial Shipbuilding 
        and Repair Industry, resulting from negotiations under 
        the auspices of the Organization for Economic 
        Cooperation and Development, and entered into on 
        December 21, 1994.
          (22) Shipbuilding agreement party.--The term 
        ``Shipbuilding Agreement Party'' means a state or 
        separate customs territory that is a Party to the 
        Shipbuilding Agreement, and with respect to which the 
        United States applies the Shipbuilding Agreement.
          (23) WTO agreement.--The term ``WTO Agreement'' means 
        the Agreement defined in section 2(9) of the Uruguay 
        Round Agreements Act.
          (24) WTO member.--The term ``WTO member'' means a 
        state, or separate customs territory (within the 
        meaning of Article XII of the WTO Agreement), with 
        respect to which the United States applies the WTO 
        Agreement.
          (25) Trade representative.--The term ``Trade 
        Representative'' means the United States Trade 
        Representative.
          (26) Affiliated persons.--The following persons shall 
        be considered to be ``affiliated'' or ``affiliated 
        persons'':
                  (A) Members of a family, including brothers 
                and sisters (whether by the whole or half 
                blood), spouse, ancestors, and lineal 
                descendants.
                  (B) Any officer or director of an 
                organization and such organization.
                  (C) Partners.
                  (D) Employer and employee.
                  (E) Any person directly or indirectly owning, 
                controlling, or holding with power to vote, 5 
                percent or more of the outstanding voting stock 
                or shares of any organization, and such 
                organization.
                  (F) Two or more persons directly or 
                indirectly controlling, controlled by, or under 
                common control with, any person.
                  (G) Any person who controls any other person, 
                and such other person.
        For purposes of this paragraph, a person shall be 
        considered to control another person if the person is 
        legally or operationally in a position to exercise 
        restraint or direction over the other person.
          (27) Injurious pricing.--The term ``injurious 
        pricing'' refers to the sale of a vessel at less than 
        fair value.
          (28) Injurious pricing margin.--
                  (A) In general.--The term ``injurious pricing 
                margin'' means the amount by which the normal 
                value exceeds the export price of the subject 
                vessel.
                  (B) Magnitude of the injurious pricing 
                margin.--The magnitude of the injurious pricing 
                margin used by the Commission shall be--
                          (i) in making a preliminary 
                        determination under section 803(a) in 
                        an investigation (including any 
                        investigation in which the Commission 
                        cumulatively assesses the effect of 
                        sales under paragraph (16)(F)(i)), the 
                        injurious pricing margin or margins 
                        published by the administering 
                        authority in its notice of initiation 
                        of the investigation; and
                          (ii) in making a final determination 
                        under section 805(b), the injurious 
                        pricing margin or margins most recently 
                        published by the administering 
                        authority before the closing of the 
                        Commission's administrative record.
          (29) Commercial interest reference rate.--The term 
        ``Commercial Interest Reference Rate'' or ``CIRR'' 
        means an interest rate that the administering authority 
        determines to be consistent with Annex III, and 
        appendices and notes thereto, of the Understanding on 
        Export Credits for Ships, resulting from negotiations 
        under the auspices of the Organization for Economic 
        Cooperation, and entered into on December 21, 1994.
          (30) Antidumping.--
                  (A) WTO members.--In the case of a WTO 
                member, the term ``antidumping'' refers to 
                action taken pursuant to the Agreement on 
                Implementation of Article VI of the General 
                Agreement on Tariffs and Trade 1994.
                  (B) Other cases.--In the case of any country 
                that is not a WTO member, the term 
                ``antidumping'' refers to action taken by the 
                country against the sale of a vessel at less 
                than fair value that is comparable to action 
                described in subparagraph (A).
          (31) Broad multiple bid.--The term ``broad multiple 
        bid'' means a bid in which the proposed buyer extends 
        an invitation to at least all the producers in the 
        industry known by the buyer to be capable of building 
        the subject vessel.
          * * * * * * *
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                      TITLE 28, UNITED STATES CODE

                    PART IV--JURISDICTION AND VENUE

          * * * * * * *

                CHAPTER 95--COURT OF INTERNATIONAL TRADE

          * * * * * * *

Sec. 1581. Civil actions against the United States and agencies and 
                    officers thereof

  (a)  * * *
          * * * * * * *
  (c) The Court of International Trade shall have exclusive 
jurisdiction of any civil action commenced under section 516A 
or 516B of the Tariff Act of 1930.
          * * * * * * *

                    PART VI--PARTICULAR PROCEEDINGS

          * * * * * * *

          CHAPTER 169--COURT OF INTERNATIONAL TRADE PROCEDURE

          * * * * * * *

Sec. 2643. Relief

  (a)  * * *
          * * * * * * *
  (c)(1) Except as provided in paragraphs (2), (3), (4), [and 
(5)] (5), and (6) of this subsection, the Court of 
International Trade may, in addition to the orders specified in 
subsections (a) and (b) of this section, order any other form 
of relief that is appropriate in a civil action, including, but 
not limited to, declaratory judgments, orders of remand, 
injunctions, and writes of mandamus and prohibition.
          * * * * * * *
  (6) In any civil action under section 516B of the Tariff Act 
of 1930, the Court of International Trade may not issue 
injunctions or any other form of equitable relief, except with 
regard to implementation of a countermeasure order under 
section 468 of that Act, upon a proper showing that such relief 
is warranted.
          * * * * * * *
                              ----------                              


                       MERCHANT MARINE ACT, 1936

          * * * * * * *

               TITLE V--CONSTRUCTION-DIFFERENTIAL SUBSIDY

          * * * * * * *
  Sec. 511. (a) When used in this section the term ``new 
vessel'' means any vessel (1) documented or agreed with the 
Secretary of Transportation to be documented under the laws of 
the United States; (2) constructed in the United States after 
December 31, 1939, or, if the vessel is a Shipbuilding 
Agreement vessel, constructed in a Shipbuilding Agreement 
Party, but only with regard to moneys deposited, on or after 
the date on which the Shipbuilding Trade Agreement Act takes 
effect, into a construction reserve fund established under 
subsection (b) or the construction of which has been financed 
under title V or VII of this Act, as amended, or the 
construction of which has been aided by a mortgage insured 
under title XI of this Act as amended; and (3) either (A) of 
such type, size, and speed as the Secretary of Transportation 
shall determine to be suitable for use on the high seas or 
Great Lakes in carrying out the purposes of this Act, but not 
of less than two thousand gross tons or of less speed than 
twelve knots, unless the Secretary of Transportation shall 
determine and certify in each case that a vessel of a specified 
lesser tonnage or speed is desirable for use by the United 
States in case of war or national emergency, or (B) constructed 
to replace a vessel or vessels requisitioned or purchased by 
the United States.
          * * * * * * *

                TITLE VI--OPERATING-DIFFERENTIAL SUBSIDY

  Sec. 601. (a) The Secretary of Transportation is authorized 
and directed to consider the application of any citizen of the 
United States for financial aid in the operation of a vessel or 
vessels, which are to be used in an essential service in the 
foreign commerce of the United States or in such service and in 
cruises authorized under section 613 of this title. In this 
title VI the term ``essential service'' means the operation of 
a vessel on a service, route, or line described in section 
211(a) or in bulk cargo carrying service described in section 
211(b). No such application shall be approved by the Secretary 
of Transportation unless he determines that (1) the operation 
of such vessel or vessels in an essential service is required 
to meet foreign-flag competition and to promote the foreign 
commerce of the United States except to the extent such vessels 
are to be operated on cruises authorized under section 613 of 
this title[, and that such vessel or vessels were built in the 
United States, or have been documented under the laws of the 
United States not later than February 1, 1928, or actually 
ordered and under construction for the account of citizens of 
the United States prior to such date] and that such vessel or 
vessels were built in the United States, or, if the vessel or 
vessels are Shipbuilding Agreement vessels, in a Shipbuilding 
Agreement Party; (2) the applicant owns or leases, or can and 
will build or purchase or lease, a vessel or vessels of the 
size, type, speed, and number, and with the proper equipment 
required to enable him to operate in an essential service, in 
such manner as may be necessary to meet competitive conditions, 
and to promote foreign commerce; (3) the applicant possesses 
the ability, experience, financial resources, and other 
qualifications necessary to enable him to conduct the proposed 
operations of the vessel or vessels as to meet competitive 
conditions and promote foreign commerce; (4) the granting of 
the aid applied for is necessary to place the proposed 
operations of the vessel or vessels on a parity with those of 
foreign competitors, and is reasonably calculated to carry out 
effectively the purposes and policy of this Act. To the extent 
the application covers cruises, as authorized under section 613 
of this title, the Secretary of Transportation may make the 
portion of this last determination relating to parity on the 
basis that any foreign flag cruise from the United States 
competes with any American flag cruise from the United States.
          * * * * * * *
  Sec.  606. Every contract for an operating-differential 
subsidy under this title shall provide (1) that the amount of 
the future payments to the contractor shall be subject to 
review and readjustment from time to time, but not more 
frequently than once a year, at the instance of the Secretary 
of Transportation or of the contractor. If any such 
readjustment cannot be reached by mutual agreement, the 
Secretary of Transportation, on his own motion or on the 
application of the contractor, shall, after a proper hearing, 
determine the facts and make such readjustment in the amount of 
such future payments as he may determine to be fair and 
reasonable and in the public interest. The testimony in every 
such proceeding shall be reduced to writing and filed in the 
office of the Secretary of Transportation. His decision shall 
be based upon and governed by the changes which may have 
occurred since the date of the said contract, with respect to 
the items theretofore considered and on which such contract was 
based, and other conditions affecting shipping, and shall be 
promulgated in a formal order, which shall be accompanied by a 
report in writing in which the Secretary of Transportation 
shall state his findings of fact; (2) that the compensation to 
be paid under it shall be reduced, under such terms and in such 
amounts as the Secretary of Transportation shall determine, for 
any periods in which the vessel or vessels are laid up; (3) 
that if the Secretary of Transportation shall determine that a 
change in an essential service, which is receiving an 
operating-differential subsidy under this title, is necessary 
in the accomplishment of the purposes of this Act, he may make 
such change upon such readjustment of payments to the 
contractor as shall be arrived at by the method prescribed in 
clause (1) of these conditions; (4) that if at any time the 
contractor receiving an operating-differential subsidy claims 
that he cannot maintain and operate his vessels in such an 
essential service, with a reasonable profit upon his 
investment, and applies to the Secretary of Transportation for 
a modification or rescission of his contract to maintain such 
essential service, and the Secretary of Transportation 
determines that such claim is proved, the Secretary of 
Transportation shall modify or rescind such contract and permit 
the contractor to withdraw such vessels from such essential 
service, upon a date fixed by the Secretary of Transportation, 
and upon the date of such withdrawal the further payment of the 
operating-differential subsidy shall cease and the contractor 
be discharged from any further obligation under such contract; 
(5) that the contractor shall conduct his operations with 
respect to essential services, and any services authorized 
under section 613 of this title, covered by his contract in an 
economical and efficient manner; and (6) that whenever 
practicable, an operator who receives subsidy with respect to 
subsistence of officers and crews shall use as such subsistence 
items only articles, materials, and supplies of the growth, 
production, and manufacture of the United States, as defined in 
section 505 herein, except when it is necessary to purchase 
supplies outside the United States to enable such vessel to 
continue and complete her voyage, and an operator who receives 
subsidy with respect to repairs shall perform such repairs 
within any of the United States or the Commonwealth of Puerto 
Rico or, if the vessel is a Shipbuilding Agreement vessel, in a 
Shipbuilding Agreement Party or in the United States, except in 
an emergency.
Sec. 607. (a) Agreement Rules.
  Any citizen of the United States owning or leasing one or 
more eligible vessels (as defined in subsection (k)(1)) may 
enter into an agreement with the Secretary under, and as 
provided in, this section to establish a capital construction 
fund (hereinafter in this section referred to as the ``fund'') 
with respect to any or all of such vessels. Any agreement 
entered into under this section shall be for the purpose of 
providing replacement vessels, additional vessels, or 
reconstructed vessels, built in the United States or, if the 
vessel is a Shipbuilding Agreement vessel, in a Shipbuilding 
Agreement Party, and documented under the laws of the United 
States for operation in the United States foreign, Great Lakes, 
or noncontiguous domestic trade or in the fisheries of the 
United States and shall provide for the deposit in the fund of 
the amounts agreed upon as necessary or appropriate to provide 
for qualified withdrawals under subsection (f). The deposits in 
the fund, and all withdrawals from the fund, whether qualified 
or nonqualified, shall be subject to such conditions and 
requirements as the Secretary may by regulations prescribe or 
are set forth in such agreement; except that the Secretary may 
not require any person to deposit in the fund for any taxable 
year more than 50 percent of that portion of such person's 
taxable income for such year (computed in the manner provided 
in subsection (b)(1)(A)) which is attributable to the operation 
of the agreement vessels.
          * * * * * * *
(k) Definitions.
  For purposes of this section--
  (1) The term ``eligible vessel'' means any vessel--
          [(A) constructed in the United States and, if 
        reconstructed, reconstructed in the United States,]
          (A)(i) constructed in the United States and, if 
        reconstructed, reconstructed in the United States or in 
        a Shipbuilding Agreement Party, or
          (ii) that is a Shipbuilding Agreement vessel and is 
        constructed in a Shipbuilding Agreement Party and, if 
        reconstructed, is reconstructed in a Shipbuilding 
        Agreement Party or in the United States,
          * * * * * * *
  (2) The term ``qualified vessel'' means any vessel--
          [(A) constructed in the United States and, if 
        reconstructed, reconstructed in the United States,]
          (A)(i) constructed in the United States and, if 
        reconstructed, reconstructed in the United States or in 
        a Shipbuilding Agreement Party, or
          (ii) that is a Shipbuilding Agreement vessel and is 
        constructed in a Shipbuilding Agreement Party and, if 
        reconstructed, is reconstructed in a Shipbuilding 
        Agreement Party or in the United States, but only with 
        regard to moneys deposited into the fund on or after 
        the date on which the Shipbuilding Trade Agreement Act 
        takes effect,
          * * * * * * *
  Sec. 610. An operating-differential subsidy shall not be paid 
under authority of this title on account of the operation of 
any vessel which does not meet the following requirements: (1) 
The vessel shall be of steel or other acceptable metal, shall 
be propelled by steam or motor, shall be as nearly fireproof as 
practicable, [shall be built in a domestic yard or shall have 
been documented under the laws of the United States not later 
than February 1, 1928, or actually ordered and under 
construction for the account of citizens of the United States 
prior to such date,] shall be built in the United States or, if 
the vessel is a Shipbuilding Agreement vessel, in a 
Shipbuilding Agreement Party, and shall be documented under the 
laws of the United States, during the entire life of the 
subsidy contract; and (2) if the vessel shall be constructed 
after the passage of this Act it shall be either a vessel 
constructed according to plans and specifications approved by 
the Secretary of Transportation and the Secretary of the Navy, 
with particular reference to economical conversion into an 
auxiliary naval vessel, or a vessel approved by the Secretary 
of Transportation and the Navy Department as otherwise useful 
to the United States in time of national emergency.
          * * * * * * *

                   TITLE IX--MISCELLANEOUS PROVISIONS

  Sec. 901. (a)  * * *
  (b)(1) Whenever the United States shall procure, contract 
for, or otherwise obtain for its own account, or shall furnish 
to or for the account of any foreign nation without provision 
for reimbursement, any equipment, materials, or commodities, 
within or without the United States, or shall advance funds or 
credits or guarantee the convertibility of foreign currencies 
in connection with the furnishing of such equipment, materials, 
or commodities, the appropriate agency or agencies shall take 
such steps as may be necessary and practicable to assure that 
at least 50 per centum of the gross tonnage of such equipment, 
materials or commodities (computed separately for dry bulk 
carriers, dry cargo liners, and tankers), which may be 
transported on ocean vessels shall be transported on privately 
owned United States-flag commercial vessels, to the extent such 
vessels are available at fair and reasonable rates for United 
States-flag commercial vessels, in such manner as will insure a 
fair and reasonable participation of United States-flag 
commercial vessels in such cargoes by geographical areas: 
Provided, That the provisions of this subsection may be waived 
whenever the Congress by concurrent resolution or otherwise, or 
the President of the United States or the Secretary of Defense 
declares that an emergency exists justifying a temporary waiver 
of the provisions of section 901(b)(1) and so notifies the 
appropriate agency or agencies: And provided further, That the 
provisions of this subsection shall not apply to cargoes 
carried in the vessels of the Panama Canal Company. Nothing 
herein shall repeal or otherwise modify the provisions of 
Public Resolution Numbered 17, Seventy-third Congress (48 Stat. 
500), as amended. [For purposes of this section, the term 
``privately owned United States-flag commercial vessels'' shall 
not be deemed to include any vessel which, subsequent to the 
date of enactment of this amendment, shall have been either (a) 
built outside the United States, (b) rebuilt outside the United 
States, or (c) documented under any foreign registry, until 
such vessel shall have been documented under the laws of the 
United States, for a period of three years: Provided, however, 
That the provisions of this amendment shall not apply where, 
(1) prior to the enactment of this amendment, the owner of a 
vessel, or contractor for the purchase of a vessel, originally 
constructed in the United States and rebuilt abroad or 
contracted to be rebuilt abroad, has notified the Maritime 
Administration in writing of its intent to document such vessel 
under United States registry, and such vessel is so documented 
on its first arrival at a United States port not later than one 
year subsequent to the date of the enactment of this amendment, 
or (2) where prior to the enactment of this amendment, the 
owner of a vessel under United States registry has made a 
contract for the rebuilding abroad of such vessel and has 
notified the Maritime Administration of such contract, and such 
rebuilding is completed and such vessel is thereafter 
documented under United States registry on its first arrival at 
a United States port not later than one year subsequent to the 
date of the enactment of this amendment.] For purposes of this 
section, the term ``privately owned United States-flag 
commercial vessels'' shall be deemed to include--
          (A) any privately owned United States-flag commercial 
        vessel constructed in the United States, and if 
        rebuilt, rebuilt in the United States or in a 
        Shipbuilding Agreement Party on or after the date on 
        which the Shipbuilding Trade Agreement Act takes 
        effect, and
          (B) any privately owned vessel constructed in a 
        Shipbuilding Agreement Party on or after the date on 
        which the Shipbuilding Trade Agreement Act takes 
        effect, and if rebuilt, rebuilt in a Shipbuilding 
        Agreement Party or in the United States, that is 
        documented pursuant to chapter 121 of title 46, United 
        States Code.
The term ``privately owned United States-flag commercial 
vessels'' shall also be deemed to include any cargo vessel that 
so qualified pursuant to section 615 of this Act or this 
paragraph before the date on which the Shipbuilding Trade 
Agreement Act takes effect. The term ``privately owned United 
States-flag commercial vessels'' shall not be deemed to include 
any liquid bulk cargo vessel that does not meet the 
requirements of section 3703a of title 46, United States Code.
          * * * * * * *
  Sec. 905. When used in this Act--
  (a)  * * *
          * * * * * * *
  (h) The term ``Shipbuilding Agreement'' means the Agreement 
Respecting Normal Competitive Conditions in the Commercial 
Shipbuilding and Repair Industry, which resulted from 
negotiations under the auspices of the Organization for 
Economic Cooperation and Development, and was entered into on 
December 21, 1994.
  (i) The term ``Shipbuilding Agreement Party'' means a state 
or separate customs territory that is a Party to the 
Shipbuilding Agreement, and with respect to which the United 
States applies the Shipbuilding Agreement.
  (j) The term ``Shipbuilding Agreement vessel'' means a vessel 
to which the Secretary determines Article 2.1 of the 
Shipbuilding Agreement applies.
  (k) The term ``Export Credit Understanding'' means the 
Understanding on Export Credits for Ships which resulted from 
negotiations under the auspices of the Organization for 
Economic Cooperation and Development and was entered into on 
December 21, 1994.
  (l) The term ``Export Credit Understanding vessel'' means a 
vessel to which the Secretary determines the Export Credit 
Understanding applies.
          * * * * * * *

               TITLE XI--FEDERAL SHIP MORTGAGE INSURANCE

          * * * * * * *
  Sec. 1104A. (a)  * * *
  (b) Obligations guaranteed under this title--
          (1)  * * *
          * * * * * * *
          [(5) shall bear interest (exclusive of charges for 
        the guarantee and service charges, if any) at rates not 
        to exceed such per centum per annum on the unpaid 
        principal as the Secretary determines to be reasonable, 
        taking into account the range of interest rates 
        prevailing in the private market for similar loans and 
        the risks assumed by the Secretary;]
          (5) shall bear interest (exclusive of charges for the 
        guarantee and service charges, if any) at rates not to 
        exceed such percent per annum on the unpaid principal 
        as the Secretary determines to be reasonable, taking 
        into account the range of interest rates prevailing in 
        the private market for similar loans and the risks 
        assumed by the Secretary, except that, with respect to 
        Export Credit Understanding vessels, and Shipbuilding 
        Agreement vessels, the obligations shall bear interest 
        at a rate the Secretary determines to be consistent 
        with obligations of the United States under the Export 
        Credit Understanding or the Shipbuilding Agreement, as 
        the case may be;
          * * * * * * *
  [(i) The Secretary may not, with respect to--
          [(1) the general 75 percent or less limitation in 
        subsection (b)(2);
          [(2) the 87\1/2\ percent or less limitation in the 
        1st, 2nd, 4th, or 5th proviso to subsection (b)(2) or 
        section 1112(b); or
          [(3) the 80 percent or less limitation in the 3rd 
        proviso to such subsection;
establish by rule, regulation, or procedure any percentage 
within any such limitation that is, or is intended to be, 
applied uniformly to all guarantees or commitments to guarantee 
made under this section that are subject to the limitation.]
  (i)(1) Except as provided in paragraph (2), the Secretary may 
not, with respect to--
          (A) the general 75 percent or less limitation 
        contained in subsection (b)(2),
          (B) the 87\1/2\ percent or less limitation contained 
        in the 1st, 2nd, 4th, or 5th proviso to subsection 
        (b)(2) or in section 1112(b), or
          (C) the 80 percent or less limitation in the 3rd 
        proviso to such subsection,
establish by rule, regulation, or procedure any percentage 
within any such limitation that is, or is intended to be, 
applied uniformly to all guarantees or commitments to guarantee 
made under this section that are subject to the limitation.
  (2) With respect to Export Credit Understanding vessels and 
Shipbuilding Agreement vessels, the Secretary may establish by 
rule, regulation, or procedure a uniform percentage that the 
Secretary determines to be consistent with obligations of the 
United States under the Export Credit Understanding or the 
Shipbuilding Agreement, as the case may be.
          * * * * * * *
  Sec. 1104B. (a)  * * *
  (b) For the purposes of this section--
          (1) the maximum term for obligations guaranteed under 
        this program may not exceed 25 years;
          (2) obligations guaranteed may not exceed 87\1/2\ 
        percent of the actual cost or depreciated actual cost 
        to the applicant for the construction or reconstruction 
        of the vessel; and
          (3) reconstruction cost obligations may not be 
        guaranteed unless the vessel after reconstruction will 
        have a useful life of at least 15 years.
The Secretary may not by rule, regulation, or procedure 
establish any percentage within the 87\1/2\ percent or less 
limitation in paragraph (2) that is, or is intended to be, 
applied uniformly to all guarantees or commitments to guarantee 
made under this section[.], except that, with respect to Export 
Credit Understanding vessels and Shipbuilding Agreement 
vessels, the Secretary may establish by rule, regulation, or 
procedure a uniform percentage that the Secretary determines to 
be consistent with obligations of the United States under the 
Export Credit Understanding or the Shipbuilding Agreement, as 
the case may be.
          * * * * * * *
                              ----------                              


                     INTERNAL REVENUE CODE OF 1986

                        Subtitle A--Income Taxes

                  CHAPTER 1--NORMAL TAXES AND SURTAXES

          * * * * * * *

 Subchapter N--Tax Based on Income From Sources Within or Without the 
                             United States

          * * * * * * *

          PART II--NONRESIDENT ALIENS AND FOREIGN CORPORATIONS

                Subpart A--Nonresident Alien Individuals

          * * * * * * *

SEC. 872. GROSS INCOME

  (a)  * * *
  (b) Exclusions.--The following items shall not be included in 
gross income of a nonresident alien individual, and shall be 
exempt from taxation under this subtitle:
          (1) Ships operated by certain nonresidents.--[Gross 
        income] Except as provided in section 883(d), gross 
        income derived by an individual resident of a foreign 
        country from the international operation of a ship or 
        ships if such foreign country grants an equivalent 
        exemption to individual residents of the United States.
          * * * * * * *

                    Subpart B--Foreign Corporations

          * * * * * * *

SEC. 883. EXCLUSIONS FROM GROSS INCOME

  (a) Income of Foreign Corporations From Ships and Aircraft.--
The following items shall not be included in gross income of a 
foreign corporation, and shall be exempt from taxation under 
this subtitle:
          (1) Ships operated by certain foreign corporations.--
        [Gross income] Except as provided in subsection (d), 
        gross income derived by a corporation organized in a 
        foreign country from the international operation of a 
        ship or ships if such foreign country grants an 
        equivalent exemption to corporations organized in the 
        United States.
          * * * * * * *
  (d) Penalties for Failure to Disclose Position That Certain 
International Shipping Income Is Not Includible in Gross 
Income.--
          (1) In general.--A taxpayer who, with respect to any 
        tax imposed by this title, takes the position that any 
        of its gross income derived from the international 
        operation of a ship or ships is not includible in gross 
        income by reason of subsection (a)(1) or section 
        872(b)(1) shall be entitled to such treatment only if 
        such position is disclosed (in such manner as the 
        Secretary may prescribe) on the return of tax for such 
        tax (or any statement attached to such return).
          (2) Additional penalties for failing to disclose 
        position.--If a taxpayer fails to meet the requirement 
        of paragraph (1) with respect to any taxable year--
                  (A) the amount of the income from the 
                international operation of a ship or ships--
                          (i) which is from sources without the 
                        United States, and
                          (ii) which is attributable to a fixed 
                        place of business in the United States,
                shall be treated for purposes of this title as 
                effectively connected with the conduct of a 
                trade or business within the United States, and
                  (B) no deductions or credits shall be allowed 
                which are attributable to income from the 
                international operation of a ship or ships.
          (3) Reasonable cause exception.--This subsection 
        shall not apply to a failure to disclose a position if 
        it is shown that such failure is due to reasonable 
        cause and not due to willful neglect.
          * * * * * * *