Trade Law Modernization Act

(Reported to House from the Committee on Energy and Commerce with amendment, H. Rept. 99-468 (Part I))

Trade Law Modernization Act - Title I: National Trade Policy and Negotiating Objectives; Negotiation Authority - Sets forth national trade policy objectives that shall guide U.S. trade policy and domestic economic policy.

Directs the Secretary of Commerce (the Secretary), within one year of enactment of this Act, to report to the Congress on bilateral trade issues between the United States and Mexico. Directs the Secretary in such report to: (1) identify and analyze the barriers to trade between the United States and Mexico; (2) recommend actions to reduce or eliminate such barriers; (3) identify and analyze the potential effects on bilateral trade of a United States-Mexico development bank; and (4) identify and analyze the potential effects on bilateral trade of a United States-Mexico Bilateral Commission which would monitor and evaluate actions taken to strengthen ties between the two countries.

Directs the Administering Authority (usually the U.S. Trade Representative) to submit by March 1 of each year to specified congressional committees a statement of the actions the Administering Authority proposes to take during such year to achieve such objectives. Requires the committees to hold hearings on such proposals and to advise the Administering Authority on such proposals.

Directs the Secretary to report periodically to the Congress and the Administering Authority on the results and status of efforts to remove market access barriers in Japan through any market-oriented sector specific negotiations. Requires the Administering Authority to take certain actions if the Secretary is unable to state in any of such reports that substantial and satisfactory progress was made regarding such product sector subject to the negotiations.

Declares that U.S. objectives in any trade negotiations shall be: (1) to obtain more open and equitable market access abroad for U.S. products and services, the reduction and elimination of the adverse effects of certain foreign trade practices, and improved effectiveness of the rules governing international trade; (2) to develop internationally accepted rules which meet certain needs; (3) to promote international cooperation in trade and monetary policies; (4) to obtain internationally agreed upon rules to evaluate and respond to government owned or controlled enterprises which engage in international trade; and (5) to establish procedures governing the sale of goods and services by such enterprises and the operation of such enterprises.

Amends the Trade Act of 1974 to transfer from the President to the Secretary the authority to take action in cases of market disruption. Transfers from the President to the Administering Authority the authority to extend tariff preferences under the Generalized System of Preferences.

Amends the Tariff Act of 1930 to transfer from the President to the Administering Authority the authority to make the final review of actions to prevent unfair practices in the importation of articles into the United States.

Authorizes the President to impose a temporary import surcharge of 25 percent in order to restore equilibrium in the balance of payments in certain circumstances. (Currently such surcharge may not exceed 15 percent). Limits the duration of such surcharge or limits imposed on imports to improve the balance of payments to two years. (Currently such measures may be imposed for only 150 days.) Deletes certain restrictions on imposing import limitations for such purposes. Authorizes one year extensions of such measures.

Directs the President to begin negotiations with foreign countries to achieve an agreement to eliminate the harmful effects on U.S. trade of balance of payments disequilibrium. Prohibits the President from: (1) beginning negotiations under the GATT on the reduction or elimination of tariffs and nontariff trade barriers until negotiations are started to eliminate the effects of balance of payments disequilibrium; or (2) concluding any GATT negotiations before the first anniversary of the date on which negotiations are commenced to eliminate the effects of balance of payments disequilibrium. Directs the Secretary of the Treasury to notify the Congress, within 30 days of enactment of this Act, of the necessary changes that must be made to restore equilibrium in the U.S. current account deficits by 1990.

Title II: Foreign Commerce Competitiveness Enhancement - Amends the Department of Commerce Organic Act to direct the Secretary to establish within the Department of Commerce the Foreign Commerce Development Program which shall: (1) analyze Federal, State, and local regulation of both foreign and U.S. industries and its effect on interstate and foreign commerce; (2) evaluate and propose responses to certain trade barriers; (3) compile a comprehensive inventory of foreign acts, policies, and practices which may constitute trade barriers or which may limit the access of U.S. industries to such foreign countries; and (4) identify and analyze all foreign programs that direct resources to a particular foreign industry to create international competitive advantage and evaluate the effect of such programs on the international competitiveness of U.S. industries, including a description of the nature and extent of government intervention. Directs the Secretary, on the basis of the information gathered through such program, to formulate strategies and policies to increase the competitiveness of U.S. industries. Directs the Secretary to report annually to the Congress and the President on: (1) the analyses and studies and inventory prepared by the Foreign Commerce Development Program; (2) the strategies and policies formulated by the Secretary to increase U.S. competitiveness, respond to foreign trade practices, and ensure reciprocity for U.S. products, services, and investment in foreign markets; (3) assessments of foreign industrial and trade policies on U.S. industries, trade, and employment, and an evaluation of economic and technological development affecting the competitive position of U.S. industry; (4) developments which are significantly likely to present a competitive challenge to, or substantial dislocation in, an established U.S. industry, which present significant new opportunities for U.S. industries, or which create a significant risk to the future competitiveness of U.S. industries; and (5) the industry sectors affected by the developments that create a significant likelihood of competition to or substantial dislocation in an established U.S. industry. Requires the Secretary, in implementing the Foreign Commerce Development Program, to give priority to those countries and product sectors in which the United States has significant economic and commercial interests.

Provides a method of changing discriminatory foreign procurement practices and regulatory requirements. Authorizes the Secretary to investigate whether: (1) a foreign government is engaging in a discriminatory procurement practice or imposing a discriminatory regulatory requirement; and (2) that practice or requirement is harming U.S. trade. Sets forth the deadlines for: (1) a determination of whether to investigate the allegations in the petition; (2) preliminary findings if the Secretary decides to undertake the investigation; and (3) the final determination of the Secretary. Directs the Secretary to initiate such an investigation if the Secretary: (1) determines to do so on the basis of a petition; (2) determines to do so on the Secretary's own initiative; or (3) has reason to believe, based on information collected under the Foreign Commerce Development Program, that discriminatory foreign procurement practices exist and are harming U.S. trade.

Directs the Secretary to establish a program to evaluate the industrial and trade policies of other countries and the effects of such policies on U.S. industries, trade, and employment. Requires the Secretary to provide sufficient information to the Congress, Federal agencies and Federal courts to ensure their consideration of the competitive impact of pending decisions that could enlarge the access of foreign products and services to the U.S. markets. Requires the Secretary to consult with foreign governments to ensure that market access conditions subject to such pending decisions are equivalent to those existing in the United States. Directs the Secretary to report to the Congress on such consultations.

Directs the Secretary to establish special industry sector advisory panels to assess the actual or potential dislocation, challenge, or opportunity for the industry sectors identified in any report submitted under the Foreign Commerce Development Program that is of national significance because of: (1) its employment or capital resources; (2) its impact on national defense; or (3) its importance as a supplier to, or customer of, other U.S. industries. Authorizes the Secretary to establish industry sector advisory panels for other industries. Requires the panels to formulate recommendations for responses to such dislocation, challenge, or opportunity.

Directs the Secretary, after the International Trade Commission (ITC) begins an import relief investigation under the Trade Act of 1974 based on a petition, to establish, upon request, an industry advisory group. Requires such an advisory group to prepare for the industry concerned an assessment of current problems and a strategy to enhance competitiveness. Directs the Secretary to try to obtain, on a confidential basis, information from the individual members of such advisory group on: (1) how such members intend to act upon the recommendations in such assessment and strategy; and (2) any other actions such members intend to take which will foster the objectives of the strategy.

Requires the ITC, the Secretary of Labor, and the Secretary to consider such assessment and strategy in making any import relief determination or taking any import relief actions.

Amends the Trade Act of 1974 to require the Administering Authority, if it determines to provide import relief and if an industry assessment and competitiveness strategy was submitted to the Administering Authority, to publish notice of the availability of, and a summary of, such assessment and strategy. Requires a review committee, if such summary is published, to: (1) monitor actions taken by the petitioners to improve the competitive position of the industry; (2) make recommendations for administrative action; and (3) submit recommended legislation to the Congress. Requires the review committee to consult with the advisory group members if the review committee determines that the firms or workers are not implementing or are implementing unsatisfactorily: (1) the recommended objectives and actions in the industry assessment and competitiveness strategy; or (2) the actions declared in the confidential information obtained by the advisory group.

Requires the Administering Authority to request the ITC to issue a report on the probable economic effect on the industry of import relief if, after consultations with the advisory group members, the review committee determines that the failure to implement or failure to implement satisfactorily such actions is not justified by changed circumstances and has adversely affected overall implementation of the objectives of the industry assessment and competitiveness strategy.

Title III: Fair Competition in Foreign Commerce - Directs the Secretary to prohibit for three years any multiple customs law offender from: (1) introducing or trying to introduce foreign goods or services into U.S. commerce; and (2) engaging or trying to engage any other person to introduce, on such offender's behalf, foreign goods or services into U.S. commerce. Provides for identifying such multiple offenders. Sets the penalty for violations of such prohibition.

Establishes in the Treasury a fund to be known as the Commerce Development and Adjustment Fund which shall consist of all countervailing and antidumping duties collected under title VII of the Tariff Act of 1930 and of all additional duties imposed by the Administering Authority under titles II and III of the Trade Act of 1974. Requires the Secretary (with respect to firms and communities) and the Secretary of Labor (with respect to workers) to use the fund to assist firms, communities, and workers in adjusting to adverse effects caused by import penetration.

Title IV: Relief from Injurious Industrial Targeting and Unfair Trade Practices - Provides that foreign acts, policies, or practices that constitute injurious industrial targeting or that circumvent or facilitate the circumvention of a trade agreement may trigger import relief actions. Defines injurious industrial targeting to mean any combination of coordinated government actions: (1) which are bestowed on a specific enterprise, industry, or group thereof; (2) which assist such enterprise, industry, or group to become more competitive in the export of any class or kind of merchandise; and (3) which cause or threaten to cause material injury. Transfers from the President to the Administering Authority the authority to take certain actions to enforce U.S. rights under trade agreements and to respond to certain foreign trade practices.

Authorizes the Administering Authority to: (1) suspend, withdraw, or prevent application of the benefit of trade agreement concessions with the foreign country or instrumentality involved; (2) direct customs officers to assess duties or impose other import restrictions on the products of such country or instrumentality or to assess fees or impose restrictions on the services of such country or instrumentality for such time, in such amount, and to such degree as the Administering Authority deems appropriate; (3) negotiate agreements to offset the burden or restrictions on U.S. commerce; (4) submit proposed administrative actions and legislation to implement any other government action which would restore or improve the international competitive position of the injured or threatened industry; (5) recommend action by the President; or (6) take any combination of such actions.

Includes unfair and inequitable natural resource input pricing within the definition of unfair or inequitable trade practice.

Declares that unfair and inequitable natural resource input pricing occurs if: (1) an input product is provided by a foreign government for input use within that country at a domestic price that is lower than fair market value and is not freely available to U.S. producers and the input product would, if sold at fair market value, constitute a significant portion of the total cost of the merchandise in or for which it is used; or (2) the right to remove an input product (removal right) is provided or sold by a foreign government within an exporting country and that product is for input use within the exporting country, the removal right is provided at a domestic price that is lower than its fair market value, and the product to which the removal right applies, if the right was sold at fair market value, constitute a significant portion of the total cost of the merchandise in or for which the product is used. Defines fair market value.

Requires the Secretary of the Treasury, if the Administering Authority takes any action to enforce U.S. trade rights with respect to capital goods to withdraw temporarily any Federal subsidy with certain exceptions that is designed to encourage the acquisition of capital goods for use expanding or modernizing industrial capacity.

Directs the Administering Authority to consult with representatives of domestic firms and workers that may be affected by any import relief investigation which is initiated by petition filed with the Administering Authority regarding any determination which is required to be made by the Administering Authority.

Directs the Administering Authority, upon written request, to make confidential business information obtained by it in connection with an import relief investigation available under a protective order. Prohibits release of information classified for national security reasons. Requires the Administering Authority to act upon requests for such information within ten days of the request.

Requires the Administering Authority, in conducting an import relief investigation initiated by petition to the Administering Authority, to present detailed questionnaires to the foreign government or enterprise involved in order to obtain information concerning the allegations in the petition. Directs the Administering Authority to verify any such information which the Administering Authority relied upon in making any determinations. Provides for relying on the best information available, which may be the information contained in the petition, if the foreign government fails to provide information or provides insufficient or unsatisfactory information.

Requires the Administering Authority to make a preliminary determination within five months of the start of such an import relief investigation on whether there is reason to believe that import relief is warranted. Authorizes the Administering Authority to take certain actions based on the preliminary finding. Requires the final determination to be made within 11 months of the start of the investigation. Requires the Administering Authority to determine what actions to take if the final determination is that import relief is warranted except that specific actions are required if injurious industrial targeting is found to exist. Requires the Administering Authority to consult with the petitioner and representatives of the affected domestic firms and workers if the final determination is affirmative. Requires the Administering Authority to report to the Congress if the final determination is affirmative and the Administering Authority declines to take any action. Terminates any preliminary import relief if the final determination is negative. Requires publication in the Federal Register of such preliminary and final determinations.

Requires the Administering Authority, if it makes a preliminary finding that injurious industrial targeting exists, to: (1) establish an advisory committee; and (2) formulate, in consultation with such advisory committee, proposals which would restore or improve the competitive position of affected domestic industries.

Requires the Administering Authority to notify the ITC when it initiates an investigation of injurious industrial targeting. Requires the ITC to make a preliminary determination within 60 days of receiving such notice of whether there is a reasonable indication that because of sales or likely sales of the merchandise which is the subject of the investigation: (1) an industry in the United States is materially injured or is threatened with material injury; or (2) the establishment or growth of an industry in the United States is materially retarded. Requires the ITC to make a final determination of whether such circumstances exist by: (1) 45 days after the affirmative final determination of the Administering Authority if the Administering Authority's preliminary determination is affirmative; or (2) 75 days after an affirmative final determination of the Administering Authority if the Administering Authority's preliminary determination is negative. Makes the ITC's determination subject to review by the U.S. Court of International Trade if such determinations were made under the countervailing or antidumping duty provisions of the Tariff Act of 1930.

Defines material injury and threat of material injury.

Requires the Administering Authority to submit to the President any proposed administrative action and any proposed legislation to restore or improve the competitive position of the injured industry if the preliminary and final determinations are that injurious industrial targeting has occurred. Provides for expedited consideration of such legislation. Requires the Administering Authority to report to the Congress on the actions the Administering Authority will take to offset the material injury or threat of material injury from the injurious industrial targeting.

Authorizes the Administering Authority to enter into a settlement agreement with the foreign country or entity involved in lieu of taking other actions if: (1) such agreement completely eliminates the material injury or threat of material injury from the injurious industrial targeting; and (2) such agreement is approved by the petitioner if the investigation began because of a petition.

Authorizes the Administering Authority to take actions to compensate a foreign country or entity if the contracting parties to the GATT disapprove of actions taken in response to injurious industrial targeting.

Directs the Administering Authority to consult with the petitioner and the representatives of affected domestic firms and workers if, in the course of an investigation, the Administering Authority has reason to believe that a foreign government engaged in dumping or other actions for which relief is available under specified provisions of the Tariff Act of 1930.

Amends the Trade Expansion Act of 1962 to require the President to take action within 90 days of receiving information that an article is being imported under such circumstances or in such quantities as to threaten national security.

Amends the Tariff Act of 1930 to provide that certain unfair methods of competition that destroy or substantially injure a U.S. industry are unlawful. (Currently such methods of competition are only unlawful if they destroy or substantially injure an efficiently and economically operated industry.)

Provides that the following acts are unlawful if the ITC first determines that an industry consisting of the U.S. operations of the owner of the intellectual property at issue and its licensees exists or is likely to be established: (1) unauthorized importation, sale or offer for sale of an article that infringes on a valid U.S. patent; (2) unauthorized importation, sale, or offer for sale of an article that was made by a process covered by a valid U.S. patent and if made in the United States would infringe a valid U.S. patent; (3) unauthorized importation, sale, or offer for sale of an article which infringes a valid U.S. copyright; (4) importation, sale, or offer for sale of an article which infringes a valid U.S. trademark; and (5) unauthorized importation, sale, or offer for sale of an article that infringes a valid U.S. maskwork.

Decreases the length of time available to the ITC to investigate a case of unfair methods of competition from one year (18 months in complicated cases) to six months (nine months in complicated cases.)

Title V: Relief from Injury Caused by Import Competition - Amends the Trade Act of 1974 to transfer from the President to the Administering Authority the authority to take certain actions following import relief investigations by the ITC.

Authorizes a petition for import relief to include within its statement of reasons for requesting import relief the desire to facilitate the orderly transfer of resources to enhance competitiveness.

Changes the scope of the ITC's import relief investigation to include determining whether an article is being imported into the United States in such increased quantities as to be a cause (currently substantial cause) of serious injury or threat of serious injury to any domestic industry that produces an article like or directly competitive with the imported article or that produces materials, parts, components, or subassemblies which, due to inherent characteristics, are intended for incorporation in an article like or directly competitive with the imported article.

Changes one of the factors that must be considered in making such determination with respect to serious injury in order to cover the inability of a significant number of firms to operate domestic production facilities at a reasonable profit. (Current law refers to the inability of firms to operate at a reasonable profit.)

Changes the factors that must be considered in making such determination with respect to the threat of serious injury in order to cover: (1) a decline in sales or market share in the domestic industry; (2) a higher and growing inventory in the domestic industry; (3) a downward trend in production, profits, wages, or employment (or increasing underemployment) in the domestic industry; (4) any combination of coordinated government actions that are bestowed on a specific enterprise, industry, or group thereof the effect of which is to assist the beneficiary to become more competitive in the export of any class or kind of merchandise and that causes or threatens to cause serious injury to the domestic industry; (5) the extent to which the U.S. market is the focal point for diversion of exports of the article concerned because of restraints on exports of such article to, or imports of such articles into, third country markets; and (6) in the case of an industry that has developed an industry assessment and competitiveness strategy, the inability of producers in the domestic industry to generate adequate capital to finance the modernization of plant and equipment or to otherwise enhance competitiveness.

Requires (currently authorizes) the ITC to make certain determinations with respect to determining the domestic industry producing an article like or directly competitive with an imported article.

Defines "cause" for purposes of determining whether imports are a cause of injury to mean a cause which is important. Declares that a cause may be important even though other causes are of equal or greater importance.

Requires the ITC, if it finds that serious injury or the threat of serious injury exists for a domestic industry, to: (1) find the amount of the increase in, or imposition of, any duty or import restriction necessary to prevent or remedy such injury; and (2) if it determines that adjustment assistance can assist in remedying such injury, recommend the provision of such assistance.

Directs the Administering Authority, if during an import relief investigation it finds that critical circumstances exist, to impose provisional measures (increase in tariff, tariff-rate quotas, quantitative restrictions, orderly marketing agreements or a combination of such actions). Requires such measures to remain in effect until the later of the date: (1) on which the President revokes such measures; (2) on which the ITC makes a negative determination of injury; or (3) which is 60 days after the date on which the ITC makes an affirmative determination of injury. Declares that critical circumstances exist if a significant increase in imports over a short time has led to circumstances in which delay in relief would cause damage that would be difficult to repair.

Requires the ITC, if it finds that serious injury has resulted from imports, to determine: (1) whether trade in the article concerned has been affected by coordinated government actions that are bestowed on a specific enterprise, industry, or group and that assist the beneficiary in becoming more competitive in exporting a class or kind of merchandise; and (2) the extent to which the U.S. market is the focal point for diversion of exports of such article because of restraints on exports of such article to, or on imports of such article into, third country markets.

Directs the Administering Authority, if it determines to provide import relief and the ITC has found that trade in the article has been affected by such coordinated government actions, to consult and negotiate with other countries that produce or consume such article to seek the establishment of a multilateral framework to maintain and develop fair, equitable, and nondisruptive patterns of trade in such article.

Requires the Administering Authority, if it decides to provide import relief, to consult with petitioners and representatives of workers and firms in the affected industry on the advisability and desirability of taking appropriate action under countervailing or antidumping duty provisions of the Tariff Act of 1930 or under title III of the Trade Act of 1974 if the Administering Authority has reason to believe that a foreign government or firm is engaged in any action or practice for which such relief is available.

Provides that an import relief investigation may be initiated for good cause shown with respect to an article that has already received import relief. (Currently two years must elapse after import relief is granted before another investigation may begin.)

Requires the Secretary of the Treasury, if the Administering Authority takes any action under title II of the Trade Act of 1974 with respect to capital goods, to withdraw temporarily any Federal subsidy, with certain exceptions, that is designed to encourage the acquisition of capital goods for use in expanding or modernizing industrial capacity.

Title VI: Countervailing and Antidumping Duties - Amends the Tariff Act of 1930 to add requirements for a country to be considered a "country under the Agreement" for purposes of the countervailing duty provisions of such Act. Requires such a country to have made a commitment under the GATT to: (1) eliminate its export subsidies within one year (five for least developed countries); (2) not increase, extend, or add export subsidies; and (3) eliminate immediately export subsidies on those products in which such country is competitive.

Requires the ITC, upon request, to investigate whether the merchandise is already competitive in the U.S. market and whether the merchandise would be competitive in the absence of export subsidies.

Directs the Administering authority to review the status of, and compliance with, specified agreements at least once during each 12-month period. Directs the Administering Authority to publish such determinations. Imposes penalties for failure of a foreign country to honor any term of such agreements.

Directs the Administering Authority, if a countervailing duty investigation is initiated based upon a petition or upon the Administering Authority's initiative, to: (1) notify the Customs Service to collect and forward information on the volume and value of entries of the class or kind of merchandise subject to the investigation; (2) order the suspension of liquidation of all entries of such merchandise; and (3) begin monitoring the volume of such imports to determine whether it has significantly increased. Prohibits making the determination of whether the volume of such imports has significantly increased until 60 days after the filing of the petition or the start of the investigation. Terminates the suspension of liquidation if the volume of such imports has not significantly increased.

Requires the Administering Authority, if the preliminary determination in a countervailing duty investigation is that critical circumstances exist, to order the posting of a cash deposit, bond, or other security for, and to apply any suspension of liquidation ordered under the countervailing duty subtitle to, unliquidated entries of such merchandise entered or withdrawn from warehouse on or after the date that is 90 days before the notice of such preliminary determination is published.

Provides for the termination of any suspension of liquidation and release of any required security if a countervailing duty investigation is terminated or suspended.

Requires the Administering Authority to determine whether critical circumstances exist if its final determination is that a subsidy does exist and the Administering Authority has determined that there has been a surge of imports of the article subject to the investigation. Requires the Administering Authority, if the Administering Authority determines that critical circumstances do not exist or the ITC determines that there is no material injury but that there is a threat of material injury or that the establishment of an industry in the United States is materially retarded, the Administering Authority shall: (1) terminate any suspension of liquidation ordered under the countervailing duty provisions; and (2) release any security and refund any cash deposit which has been made.

Directs the Administering Authority, if an antidumping investigation is initiated by petition or upon the Administering Authority's own initiative, to: (1) notify the Customs Service to collect and forward information on the volume and value of entries of the class or kind of merchandise subject to the investigation; and (2) begin monitoring the volume of such imports to determine whether it has significantly increased. Prohibits making the determination of whether the volume of such imports has significantly increased until 60 days after the filing of the petition or the start of the investigation. Terminates the suspension of liquidation if the volume of such imports has not significantly increased.

Requires a specified amount of security to be posted for articles subject to an antidumping investigation which are imported on or after the date of publication of the notice of the decision to start the investigation.

Requires the Administering Authority to make specified determinations if the Administering Authority determines that the volume of imports of the articles subject to an antidumping investigation have recently increased significantly. (Current law requires the Administering Authority to make such determinations if the petitioner alleges critical circumstances.) Requires the suspension of liquidation or the bond requirement to apply to all such articles that were imported 90 days before the publication of the notice of investigation if the Administering Authority makes certain affirmative findings about a history of dumping such articles or the knowledge of the importer of the fair value of the imports.

Provides for the termination of any suspension of liquidation and release of any required security if an antidumping duty investigation is terminated or suspended.

Requires the Administering Authority's final determination on whether dumping exists to include a finding on whether critical circumstances exist if such final determination is affirmative and the Administering Authority found that imports of the article under investigation had significantly increased.

Requires the Administering Authority, if the Administering Authority determines not to extend the time for making a final determination of the existence of dumping or the ITC determines that there is no material injury but that there is threat of material injury or that the establishment of an industry in the United States is materially retarded, to: (1) terminate any suspension of liquidation ordered under the antidumping provisions; and (2) release any security and refund any cash deposit which has been made.

Waives the requirement that the ITC make a preliminary determination of injury in a countervailing duty investigation if the ITC has found injury in an antidumping or countervailing duty investigation with respect to the same merchandise during the year preceding the start of the new investigation.

Authorizes the Administering Authority to suspend countervailing duty investigations if the government of the subsidizing country or the chief exporter of the merchandise agrees to eliminate the subsidy after the date on which the investigation is suspended. (Current law permits the government or exporter to offset the subsidy as an alternative to eliminating it.)

Adds conditions which must be met before the Administering Authority is allowed to permit the posting of security in lieu of the deposit of estimated antidumping duties. Allows the Administering Authority to permit such action if: (1) the investigation is not extraordinarily complicated; (2) the final determination in the investigation has not been postponed; (3) the manufacturer, producer, or exporter of the merchandise provides credible evidence that the difference between the foreign market value and the U.S. price of the merchandise is significantly less than the amount specified in the antidumping duty order; and (4) the data concerning the foreign market value and the U.S. price apply to sales in the usual commercial quantities and in the ordinary course of trade. Requires the Administering Authority to make certain confidential information available to interested parties and to afford them as opportunity for comment before deciding whether to permit the posting of bond or other security.

Prohibits treating countervailing and antidumping duties as any other customs duties for purposes of any law relating to the drawback of customs duties.

Prohibits granting any exception to the labeling requirements applied to imports for imported silver jewelry.

Requires the ITC, in determining whether a U.S. industry is threatened with material injury because of imports, to consider: (1) any combination of coordinated government actions that are bestowed on a specific enterprise, industry, or group thereof the effect of which is to assist the beneficiary to become more competitive in the export of any merchandise and to cause or threaten to cause material injury to the United States; and (2) the extent to which the United States is the focal point for exports of the merchandise by reason of restraints on exports of their merchandise to, or on imports of the merchandise into, third country markets.

Includes within the definition of "interested party" for purposes of antidumping and countervailing duty investigations a manufacturer, producer, or wholesaler of major parts, materials, components, or assemblies or subassemblies which are intended to be incorporated into a like product.

Authorizes the Administering Authority to waive the requirement that the merchandise subject to investigation be produced by the same person if a government agency follows or has followed a practice of allocating contracts for, or establishing quotas for the merchandise among users in that country. Requires such government actions to be considered in ascertaining the foreign market value of the merchandise.

Defines diversionary dumping as dumping of any material or component which is incorporated into the merchandise under investigation and which has been the subject of a previous investigation.

Requires the Administering Authority to determine whether an increase in imports of the merchandise under investigation has occurred if: (1) a countervailing duty order is in effect with respect to an input product or an input product is subject to an agreement between the United States and a foreign country or foreign customs union; and (2) a subsidy continues to be paid on such input product after a countervailing duty order was issued.

Requires the Administering Authority to include in calculating the cost of producing the merchandise the value of any benefit the producer or manufacturer has received from government research and development programs. Sets forth special rules for determining cost of production and constructed value if imports of the merchandise into the home market have been unreasonably restrained.

Sets forth general rules governing the disclosure of confidential information to interested parties.