§ 3571. — Subsidies enforcement.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 19USC3571]
TITLE 19--CUSTOMS DUTIES
CHAPTER 22--URUGUAY ROUND TRADE AGREEMENTS
SUBCHAPTER II--ENFORCEMENT OF UNITED STATES RIGHTS UNDER SUBSIDIES
AGREEMENT
Sec. 3571. Subsidies enforcement
(a) Assistance regarding multilateral subsidy remedies
The administering authority shall provide information to the public
upon request, and, to the extent feasible, assistance and advice to
interested parties concerning--
(1) remedies and benefits available under relevant provisions of
the Subsidies Agreement, and
(2) the procedures relating to such remedies and benefits.
(b) Prohibited subsidies
(1) Notification of Trade Representative
If the administering authority determines pursuant to title VII
of the Tariff Act of 1930 [19 U.S.C. 1671 et seq.] that a class or
kind of merchandise is benefiting from a subsidy which is prohibited
under Article 3 of the Subsidies Agreement, the administering
authority shall notify the Trade Representative and shall provide
the Trade Representative with the information upon which the
administering authority based its determination.
(2) Request by interested party regarding prohibited subsidy
An interested party may request that the administering authority
determine if there is reason to believe that merchandise produced in
a WTO member country is benefiting from a subsidy which is
prohibited under Article 3 of the Subsidies Agreement. The request
shall contain such information as the administering authority may
require to support the allegations contained in the request. If the
administering authority, after analyzing the request and other
information reasonably available to the administering authority,
determines that there is reason to believe that such merchandise is
benefiting from a subsidy which is prohibited under Article 3 of the
Subsidies Agreement, the administering authority shall so notify the
Trade Representative, and shall include supporting information with
the notification.
(c) Subsidies actionable under Agreement
(1) In general
If the administering authority determines pursuant to title VII
of the Tariff Act of 1930 [19 U.S.C. 1671 et seq.] that a class or
kind of merchandise is benefiting from a subsidy described in
Article 6.1 of the Subsidies Agreement, the administering authority
shall notify the Trade Representative, and shall provide the Trade
Representative with the information upon which the administering
authority based its determination.
(2) Request by interested party regarding adverse effects
An interested party may request the administering authority to
determine if there is reason to believe that a subsidy which is
actionable under the Subsidies Agreement is causing adverse effects.
The request shall contain such information as the administering
authority may require to support the allegations contained in the
request. At the request of the administering authority, the
Commission shall assist the administering authority in analyzing the
information pertaining to the existence of such adverse effects. If
the administering authority, after analyzing the request and other
information reasonably available to the administering authority,
determines that there is reason to believe that a subsidy which is
actionable under the Subsidies Agreement is causing adverse effects,
the administering authority shall so notify the Trade
Representative, and shall include supporting information with the
notification.
(d) Initiation of section 2411 investigation
On the basis of the notification and information provided by the
administering authority pursuant to subsection (b) or (c) of this
section, such other information as the Trade Representative may have or
obtain, and where applicable, after consultation with an interested
party referred to in subsection (b)(2) or (c)(2) of this section, the
Trade Representative shall, unless such interested party objects,
determine as expeditiously as possible, in accordance with the
procedures in section 302(b)(1) of the Trade Act of 1974 (19 U.S.C.
2412(b)(1)), whether to initiate an investigation pursuant to title III
of that Act (19 U.S.C. 2411 et seq.). At the request of the Trade
Representative, the administering authority and the Commission shall
assist the Trade Representative in an investigation initiated pursuant
to this subsection.
(e) Nonactionable subsidies
(1) Compliance with Article 8 of the Subsidies Agreement
(A) Monitoring
In order to monitor whether a subsidy meets the conditions
and criteria described in Article 8.2 of the Subsidies Agreement
and is nonactionable, the Trade Representative shall provide the
administering authority on a timely basis with any information
submitted or report made pursuant to Article 8.3 or 8.4 of the
Subsidies Agreement regarding a notified subsidy program. The
administering authority shall review such information and
reports, and where appropriate, shall recommend to the Trade
Representative that the Trade Representative seek pursuant to
Article 8.3 or 8.4 of the Subsidies Agreement additional
information regarding the notified subsidy program or a subsidy
granted pursuant to the notified subsidy program. If the
administering authority has reason to believe that a violation
of Article 8 of the Subsidies Agreement exists, the
administering authority shall so notify the Trade
Representative, and shall include supporting information with
the notification.
(B) Request by interested party regarding violation of Article 8
An interested party may request the administering authority
to determine if there is reason to believe that a violation of
Article 8 of the Subsidies Agreement exists. The request shall
contain such information as the administering authority may
require to support the allegations contained in the request. If
the administering authority, after analyzing the request and
other information reasonably available to the administering
authority, determines that additional information is needed, the
administering authority shall recommend to the Trade
Representative that the Trade Representative seek, pursuant to
Article 8.3 or 8.4 of the Subsidies Agreement, additional
information regarding the particular notified subsidy program or
a subsidy granted pursuant to the notified subsidy program. If
the administering authority determines that there is reason to
believe that a violation of Article 8 of the Subsidies Agreement
exists, the administering authority shall so notify the Trade
Representative, and shall include supporting information with
the notification.
(C) Action by Trade Representative
(i) If the Trade Representative, on the basis of the
notification and information provided by the administering
authority pursuant to subparagraph (A) or (B), and such other
information as the Trade Representative may have or obtain, and
after consulting with the interested party referred to in
subparagraph (B) and appropriate domestic industries, determines
that there is reason to believe that a violation of Article 8 of
the Subsidies Agreement exists, the Trade Representative shall
invoke the procedures of Article 8.4 or 8.5 of the Subsidies
Agreement.
(ii) For purposes of clause (i), the Trade Representative
shall determine that there is reason to believe that a violation
of Article 8 exists in any case in which the Trade
Representative determines that a notified subsidy program or a
subsidy granted pursuant to a notified subsidy program does not
satisfy the conditions and criteria required for a nonactionable
subsidy program under this Act, the Subsidies Agreement, and the
statement of administrative action approved under section
3511(a) of this title.
(D) Notification of administering authority
The Trade Representative shall notify the administering
authority whenever a violation of Article 8 of the Subsidies
Agreement has been found to exist pursuant to Article 8.4 or 8.5
of that Agreement.
(2) Serious adverse effects
(A) Request by interested party
An interested party may request the administering authority
to determine if there is reason to believe that serious adverse
effects resulting from a program referred to in Article 8.2 of
the Subsidies Agreement exist. The request shall contain such
information as the administering authority may require to
support the allegations contained in the request.
(B) Action by administering authority
Within 90 days after receipt of the request described in
subparagraph (A), the administering authority, after analyzing
the request and other information reasonably available to the
administering authority, shall determine if there is reason to
believe that serious adverse effects resulting from a program
referred to in Article 8.2 of the Subsidies Agreement exist. If
the determination of the administering authority is affirmative,
it shall so notify the Trade Representative and shall include
supporting information with the notification. The Commission
shall assist the administering authority in analyzing the
information pertaining to the existence of such serious adverse
effects if the administering authority requests the Commission's
assistance. If the subsidy program that is alleged to result in
serious adverse effects has been the subject of a countervailing
duty investigation or review under subtitle A or C of title VII
of the Tariff Act of 1930 [19 U.S.C. 1671 et seq., 1675 et
seq.], the administering authority shall take into account the
determinations made by the administering authority and the
Commission in such investigation or review and the administering
authority shall complete its analysis as expeditiously as
possible.
(C) Action by Trade Representative
The Trade Representative, on the basis of the notification
and information provided by the administering authority pursuant
to subparagraph (B), and such other information as the Trade
Representative may have or obtain, shall determine as
expeditiously as possible, but not later than 30 days after
receipt of the notification provided by the administering
authority, if there is reason to believe that serious adverse
effects exist resulting from the subsidy program which is the
subject of the administering authority's notification. The Trade
Representative shall make an affirmative determination regarding
the existence of such serious adverse effects unless the Trade
Representative finds that the notification of the administering
authority is not supported by the facts.
(D) Consultations
If the Trade Representative determines that there is reason
to believe that serious adverse effects resulting from the
subsidy program exist, the Trade Representative, unless the
interested party referred to in subparagraph (A) objects, shall
invoke the procedures of Article 9 of the Subsidies Agreement,
and shall request consultations pursuant to Article 9.2 of the
Subsidies Agreement with respect to such serious adverse
effects. If such consultations have not resulted in a mutually
acceptable solution within 60 days after the request is made for
such consultations, the Trade Representative shall refer the
matter to the Subsidies Committee pursuant to Article 9.3 of the
Subsidies Agreement.
(E) Determination by Subsidies Committee
If the Trade Representative determines that--
(i) the Subsidies Committee has been prevented from
making an affirmative determination regarding the existence
of serious adverse effects under Article 9 of the Subsidies
Agreement by reason of the refusal of the WTO member country
with respect to which the consultations have been invoked to
join in an affirmative consensus--
(I) that such serious adverse effects exist, or
(II) regarding a recommendation to such WTO member
country to modify the subsidy program in such a way as
to remove the serious adverse effects, or
(ii) the Subsidies Committee has not presented its
conclusions regarding the existence of such serious adverse
effects within 120 days after the date the matter was
referred to it, as required by Article 9.4 of the Subsidies
Agreement,
the Trade Representative shall, within 30 days after such
determination, make a determination under section 304(a)(1) of
the Trade Act of 1974 (19 U.S.C. 2414(a)(1)) regarding what
action to take under section 301(a)(1)(A) of that Act [19 U.S.C.
2411(a)(1)(A)].
(F) Noncompliance with Committee recommendation
In the event that the Subsidies Committee makes a
recommendation under Article 9.4 of the Subsidies Agreement and
the WTO member country with respect to which such recommendation
is made does not comply with such recommendation within 6 months
after the date of the recommendation, the Trade Representative
shall make a determination under section 304(a)(1) of the Trade
Act of 1974 (19 U.S.C. 2414(a)(1)) regarding what action to take
under section 301(a) of that Act [19 U.S.C. 2411(a)].
(f) Notification, consultation, and publication
(1) Notification of Congress
The Trade Representative shall submit promptly to the Committee
on Ways and Means of the House of Representatives, the Committee on
Finance of the Senate, and other appropriate committees of the
Congress any information submitted or report made pursuant to
Article 8.3 or 8.4 of the Subsidies Agreement regarding a notified
subsidy program.
(2) Publication in the Federal Register
The administering authority shall publish regularly in the
Federal Register a summary notice of any information submitted or
report made pursuant to Article 8.3 or 8.4 of the Subsidies
Agreement regarding notified subsidy programs.
(3) Consultations with Congress and private sector
The Trade Representative and the administering authority
promptly shall consult with the committees referred to in paragraph
(1), and with interested representatives of the private sector,
regarding all information submitted or reports made pursuant to
Article 8.3 or 8.4 of the Subsidies Agreement regarding a notified
subsidy program.
(4) Annual report
Not later than February 1 of each year beginning in 1996, the
Trade Representative and the administering authority shall issue a
joint report to the Congress detailing--
(A) the subsidies practices of major trading partners of the
United States, including subsidies that are prohibited, are
causing serious prejudice, or are nonactionable, under the
Subsidies Agreement, and
(B) the monitoring and enforcement activities of the Trade
Representative and the administering authority during the
preceding calendar year which relate to subsidies practices.
(g) Cooperation of other agencies
All agencies, departments, and independent agencies of the Federal
Government shall cooperate fully with one another in carrying out the
provisions of this section, and, upon the request of the administering
authority, shall furnish to the administering authority all records,
papers, and information in their possession which relate to the
requirements of this section.
(h) Definitions
For purposes of this section:
(1) Adverse effects
The term ``adverse effects'' has the meaning given that term in
Articles 5(a) and 5(c) of the Subsidies Agreement.
(2) Administering authority
The term ``administering authority'' has the meaning given that
term in section 771(1) of the Tariff Act of 1930 (19 U.S.C.
1677(1)).
(3) Commission
The term ``Commission'' means the United States International
Trade Commission.
(4) Interested party
The term ``interested party'' means a party described in
subparagraph (C), (D), (E), (F), or (G) of section 771(9) of the
Tariff Act of 1930 (19 U.S.C. 1677(9)(C), (D), (E), (F), or (G)).
(5) Nonactionable subsidy
The term ``nonactionable subsidy'' means a subsidy described in
Article 8.1(b) of the Subsidies Agreement.
(6) Notified subsidy program
The term ``notified subsidy program'' means a subsidy program
which has been notified pursuant to Article 8.3 of the Subsidies
Agreement.
(7) Serious adverse effects
The term ``serious adverse effects'' has the meaning given that
term in Article 9.1 of the Subsidies Agreement.
(8) Subsidies Agreement
The term ``Subsidies Agreement'' means the Agreement on
Subsidies and Countervailing Measures described in section 771(8) of
the Tariff Act of 1930 (19 U.S.C. 1677(8)).
(9) Subsidies Committee
The term ``Subsidies Committee'' means the committee established
pursuant to Article 24 of the Subsidies Agreement.
(10) Subsidy
The term ``subsidy'' has the meaning given that term in Article
1 of the Subsidies Agreement.
(11) Trade Representative
The term ``Trade Representative'' means the United States Trade
Representative.
(12) Violation of Article 8
The term ``violation of Article 8'' means the failure of a
notified subsidy program or an individual subsidy granted pursuant
to a notified subsidy program to meet the applicable conditions and
criteria described in Article 8.2 of the Subsidies Agreement.
(i) Treatment of proprietary information
Notwithstanding any other provision of law, the administering
authority may provide the Trade Representative with a copy of
proprietary information submitted to, or obtained by, the administering
authority that the Trade Representative considers relevant in carrying
out its responsibilities under this subchapter. The Trade Representative
shall protect from public disclosure proprietary information obtained
from the administering authority under this subchapter.
(Pub. L. 103-465, title II, Sec. 281, Dec. 8, 1994, 108 Stat. 4922; Pub.
L. 104-295, Sec. 20(b)(13), Oct. 11, 1996, 110 Stat. 3527.)
References in Text
The Tariff Act of 1930, referred to in subsecs. (b)(1), (c)(1), and
(e)(2)(B), is act June 17, 1930, ch. 497, 46 Stat. 590, as amended.
Title VII of the Act is classified generally to subtitle IV (Sec. 1671
et seq.) of chapter 4 of this title. Subtitles A and C of title VII of
the Act are classified generally to parts I (Sec. 1671 et seq.) and III
(Sec. 1675 et seq.), respectively, of subtitle IV of chapter 4 of this
title. For complete classification of this Act to the Code, see section
1654 of this title and Tables.
The Trade Act of 1974, referred to in subsec. (d), is Pub. L. 93-
618, Jan. 3, 1975, 88 Stat. 1978, as amended. Title III of the Act is
classified principally to subchapter III (Sec. 2411 et seq.) of chapter
12 of this title. For complete classification of this Act to the Code,
see section 2101 of this title and Tables.
This Act, referred to in subsec. (e)(1)(C)(ii), is Pub. L. 103-465,
Dec. 8, 1994, 108 Stat. 4809, known as the Uruguay Round Agreements Act.
For complete classification of this Act to the Code, see Short Title
note set out under section 3501 of this title and Tables.
This subchapter, referred to in subsec. (i), was in the original
``this part'', meaning part 4 (Secs. 281 to 283) of subtitle B of title
II of Pub. L. 103-465, which enacted this subchapter and amended
sections 1671b, 1675, 1677d, and 2191 of this title. For complete
classification of this part to the Code, see Tables.
Amendments
1996--Subsec. (h)(4). Pub. L. 104-295 struck out ``(A),'' after
``1677(9)''.
Effective Date
Subchapter effective, except as otherwise provided, on the date on
which the WTO Agreement enters into force with respect to the United
States [Jan. 1, 1995], and applicable with respect to investigations,
reviews, and inquiries initiated and petitions filed under specified
provisions of subtitle IV (Sec. 1671 et seq.) of chapter 4 of this title
after such date, see section 291 of Pub. L. 103-465, set out as an
Effective Date of 1994 Amendment note under section 1671 of this title.
