                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 4--TARIFF ACT OF 1930
 
           SUBTITLE IV--COUNTERVAILING AND ANTIDUMPING DUTIES
 
               Part I--Imposition of Countervailing Duties
 
Sec. 1671b. 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 1671a(c)(3) of this title, 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 materially injured, or
                (ii) is threatened with material injury, or

            (B) the establishment of an industry in the United States is 
        materially retarded,

    by reason of imports of the subject merchandise and that imports of 
    the subject merchandise are not negligible. If the Commission finds 
    that imports of the subject merchandise are negligible or otherwise 
    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)--
            (A) in the case of a petition filed under section 1671a(b) 
        of this title--
                (i) within 45 days after the date on which the petition 
            is filed, or
                (ii) if the time has been extended pursuant to section 
            1671a(c)(1)(B) of this title, within 25 days after the date 
            on which the Commission receives notice from the 
            administering authority of initiation of the investigation, 
            and

            (B) in the case of an investigation initiated under section 
        1671a(a) of this title, within 45 days after the date on which 
        the Commission receives notice from the administering authority 
        that an investigation has been initiated under such section.

(b) Preliminary determination by administering authority; expedited 
        determinations; waiver of verification

    (1) Within 65 days after the date on which the administering 
authority initiates an investigation under section 1671a(c) of this 
title, or an investigation is initiated under section 1671a(a) of this 
title, but not before an affirmative determination by the Commission 
under subsection (a) of this section, 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 a countervailable subsidy is being provided with 
respect to the subject merchandise.
    (2) Notwithstanding paragraph (1), when the petition is one subject 
to section 1671a(b)(3) of this title, the Administering Authority shall, 
taking into account the nature of the countervailable subsidy concerned, 
make the determination required by paragraph (1) on an expedited basis 
and within 65 days after the date on which the administering authority 
initiates an investigation under section 1671a(c) of this title unless 
the provisions of subsection (c) of this section apply.
    (3) Within 55 days after the initiation of an investigation the 
administering authority shall cause an official designated for such 
purpose to review the information concerning the case received during 
the first 50 days of the investigation, and, if there appears to be 
sufficient information available upon which the determination can 
reasonably be based, to disclose to the petitioner and any interested 
party, then a party to the proceedings that requests such disclosure, 
all available nonconfidential information and all other information 
which is disclosed pursuant to section 1677f of this title. Within 3 
days (not counting Saturdays, Sundays, or legal public holidays) after 
such disclosure, the petitioner and each party which is an interested 
party described in subparagraph (C), (D), (E), (F), or (G) of section 
1677(9) of this title to whom such disclosure was made may furnish to 
the administering authority an irrevocable written waiver of 
verification of the information received by the authority, and an 
agreement that it is willing to have a determination made on the basis 
of the record then available to the authority. If a timely waiver and 
agreement have been received from the petitioner and each party which is 
an interested party described in subparagraph (C), (D), (E), (F), or (G) 
of section 1677(9) of this title to whom the disclosure was made, and 
the authority finds that sufficient information is then available upon 
which the preliminary determination can reasonably be based, a 
preliminary determination shall be made on an expedited basis on the 
basis of the record established during the first 50 days after the 
investigation was initiated.
    (4) De minimis countervailable subsidy.--
        (A) General rule.--In making a determination under this 
    subsection, the administering authority shall disregard any de 
    minimis countervailable subsidy. For purposes of the preceding 
    sentence, a countervailable subsidy is de minimis if the 
    administering authority determines that the aggregate of the net 
    countervailable subsidies is less than 1 percent ad valorem or the 
    equivalent specific rate for the subject merchandise.
        (B) Exception for developing countries.--In the case of subject 
    merchandise imported from a Subsidies Agreement country (other than 
    a country to which subparagraph (C) applies) designated by the Trade 
    Representative as a developing country in accordance with section 
    1677(36) of this title, a countervailable subsidy is de minimis if 
    the administering authority determines that the aggregate of the net 
    countervailable subsidies does not exceed 2 percent ad valorem or 
    the equivalent specific rate for the subject merchandise.
        (C) Certain other developing countries.--In the case of subject 
    merchandise imported from a Subsidies Agreement country that is--
            (i) a least developed country, as determined by the Trade 
        Representative in accordance with section 1677(36) of this 
        title, or
            (ii) a developing country with respect to which the Trade 
        Representative has notified the administering authority that the 
        country has eliminated its export subsidies on an expedited 
        basis within the meaning of Article 27.11 of the Subsidies 
        Agreement,

    subparagraph (B) shall be applied by substituting ``3 percent'' for 
    ``2 percent''.
        (D) Limitations on application of subparagraph (C).--
            (i) In general.--In the case of a country described in 
        subparagraph (C)(i), the provisions of subparagraph (C) shall 
        not apply after the date that is 8 years after the date the WTO 
        Agreement enters into force.
            (ii) Special rule for subparagraph (C)(ii) countries.--In 
        the case of a country described in subparagraph (C)(ii), the 
        provisions of subparagraph (C) shall not apply after the earlier 
        of--
                (I) the date that is 8 years after the date the WTO 
            Agreement enters into force, or
                (II) the date on which the Trade Representative notifies 
            the administering authority that such country is providing 
            an export subsidy.

    (5) Notification of article 8 violation.--If the only subsidy under 
investigation is a subsidy with respect to which the administering 
authority received notice from the Trade Representative of a violation 
of Article 8 of the Subsidies Agreement, paragraph (1) shall be applied 
by substituting ``60 days'' for ``65 days''.

(c) Extension of period in extraordinarily complicated cases

                           (1) In general

        If--
            (A) the petitioner makes a timely request for an extension 
        of the period within which the determination must be made under 
        subsection (b) of this section, or
            (B) the administering authority concludes that the parties 
        concerned are cooperating and determines that--
                (i) the case is extraordinarily complicated by reason 
            of--
                    (I) the number and complexity of the alleged 
                countervailable subsidy practices;
                    (II) the novelty of the issues presented;
                    (III) the need to determine the extent to which 
                particular countervailable subsidies are used by 
                individual manufacturers, producers, and exporters; or
                    (IV) the number of firms whose activities must be 
                investigated; and

                (ii) additional time is necessary to make the 
            preliminary determination,

    then the administering authority may postpone making the preliminary 
    determination under subsection (b) of this section until not later 
    than the 130th day after the date on which the administering 
    authority initiates an investigation under section 1671a(c) of this 
    title, or an investigation is initiated under section 1671a(a) of 
    this title.

                     (2) 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) of this section, if it intends to postpone making the 
    preliminary determination under paragraph (1). The notification 
    shall include an explanation of the reasons for the postponement. 
    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) of this section is affirmative, the administering 
authority--
        (1)(A) shall--
            (i) determine an estimated individual countervailable 
        subsidy rate for each exporter and producer individually 
        investigated, and, in accordance with section 1671d(c)(5) of 
        this title, an estimated all-others rate for all exporters and 
        producers not individually investigated and for new exporters 
        and producers within the meaning of section 1675(a)(2)(B) of 
        this title, or
            (ii) if section 1677f-1(e)(2)(B) of this title applies, 
        determine a single estimated country-wide subsidy rate, 
        applicable to all exporters and producers, and

        (B) shall order the posting of a cash deposit, bond, or other 
    security, as the administering authority deems appropriate, for each 
    entry of the subject merchandise in an amount based on the estimated 
    individual countervailable subsidy rate, the estimated all-others 
    rate, or the estimated country-wide subsidy rate, whichever is 
    applicable,
        (2) shall order the suspension of liquidation of all entries of 
    merchandise subject to the determination which are entered, or 
    withdrawn from warehouse, for consumption on or after the later of--
            (A) the date on which notice of the determination is 
        published in the Federal Register, or
            (B) the date that is 60 days after the date on which notice 
        of the determination to initiate the investigation is published 
        in the Federal Register, and

        (3) shall 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.

The instructions of the administering authority under paragraphs (1) and 
(2) may not remain in effect for more than 4 months.

(e) Critical circumstances determinations

                           (1) In general

        If a petitioner alleges critical circumstances in its original 
    petition, or by amendment at any time more than 20 days before the 
    date of a final determination by the administering authority, then 
    the administering authority shall promptly (at any time after the 
    initiation of the investigation under this part) determine, on the 
    basis of the information available to it at that time, whether there 
    is a reasonable basis to believe or suspect that--
            (A) the alleged countervailable subsidy is inconsistent with 
        the Subsidies Agreement, and
            (B) there have been massive imports of the subject 
        merchandise over a relatively short period.

                    (2) Suspension of liquidation

        If the determination of the administering authority under 
    paragraph (1) is affirmative, then any suspension of liquidation 
    ordered under subsection (d)(2) of this section shall apply, or, if 
    notice of such suspension of liquidation is already published, be 
    amended to apply, to unliquidated entries of merchandise entered, or 
    withdrawn from warehouse, for consumption on or after the later of--
            (A) the date which is 90 days before the date on which the 
        suspension of liquidation was first ordered, or
            (B) the date on which notice of the determination to 
        initiate the investigation is published in the Federal Register.

(f) 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) of this section, the Commission shall transmit 
to the administering authority the facts and conclusions on which its 
determination is based.

(g) Time period where upstream subsidization is involved

                           (1) In general

        Whenever the administering authority concludes prior to a 
    preliminary determination under subsection (b) of this section, that 
    there is a reasonable basis to believe or suspect that an upstream 
    subsidy is being bestowed, the time period within which a 
    preliminary determination must be made shall be extended to 250 days 
    after the filing of a petition under section 1671a(b) of this title 
    or initiation of an investigation under section 1671a(a) of this 
    title (310 days in cases declared extraordinarily complicated under 
    subsection (c) of this section), if the administering authority 
    concludes that such additional time is necessary to make the 
    required determination concerning upstream subsidization.

                           (2) Exceptions

        Whenever the administering authority concludes, after a 
    preliminary determination under subsection (b) of this section, that 
    there is a reasonable basis to believe or suspect that an upstream 
    subsidy is being bestowed--
            (A) in cases in which the preliminary determination was 
        negative, the time period within which a final determination 
        must be made shall be extended to 165 or 225 days, as 
        appropriate, under section 1671d(a)(1) of this title; or
            (B) in cases in which the preliminary determination is 
        affirmative, the determination concerning upstream 
        subsidization--
                (i) need not be made until the conclusion of the first 
            annual review under section 1675 of this title of any 
            eventual Countervailing Duty Order, or, at the option of the 
            petitioner, or
                (ii) will be made in the investigation and the time 
            period within which a final determination must be made shall 
            be extended to 165 or 225 days, as appropriate, under 
            section 1671d(a)(1) of this title, as appropriate,\1\ except 
            that the suspension of liquidation ordered in the 
            preliminary determination shall terminate at the end of 120 
            days from the date of publication of that determination and 
            not be resumed unless and until the publication of a 
            Countervailing Duty Order under section 1671e(a) of this 
            title.
---------------------------------------------------------------------------
    \1\ So in original. The words ``as appropriate,'' probably should 
not appear.

    There may be an extension of time for the making of a final 
    determination under this subsection only if the administering 
    authority determines that such additional time is necessary to make 
    the required determination concerning upstream subsidization.

(June 17, 1930, ch. 497, title VII, Sec. 703, as added Pub. L. 96-39, 
title I, Sec. 101, July 26, 1979, 93 Stat. 152; amended Pub. L. 98-181, 
title VI, Sec. 650(b), Nov. 30, 1983, 97 Stat. 1266; Pub. L. 98-573, 
title VI, Secs. 603, 613(c), Oct. 30, 1984, 98 Stat. 3024, 3036; Pub. L. 
99-514, title XVIII, Sec. 1886(a)(3), Oct. 22, 1986, 100 Stat. 2921; 
Pub. L. 100-418, title I, Secs. 1324(a)(2), 1326(d)(1), Aug. 23, 1988, 
102 Stat. 1200, 1204; Pub. L. 103-465, title II, Secs. 212(b)(1)(A), 
(C), (D), (F), 214(a)(1), 215(a), 233(a)(5)(C), (6)(A)(iii), (iv), (B), 
263(a), 264(a), (c)(1), (2), 270(a)(1)(B)-(D), (b)(1)(B), 283(a), Dec. 
8, 1994, 108 Stat. 4847, 4848, 4850, 4852, 4899, 4901, 4911, 4912, 4914, 
4917, 4930; Pub. L. 104-295, Sec. 20(b)(5), Oct. 11, 1996, 110 Stat. 
3527.)


                               Amendments

    1996--Subsec. (b)(1). Pub. L. 104-295 amended Pub. L. 103-465, 
Sec. 212(b)(1)(C)(i)(I). See 1994 Amendment note below.
    1994--Subsec. (a). Pub. L. 103-465, Sec. 212(b)(1)(A), amended 
heading and text of subsec. (a) generally. Prior to amendment, text read 
as follows: ``Except in the case of a petition dismissed by the 
administering authority under section 1671a(c)(3) of this title, the 
Commission, within 45 days after the date on which a petition is filed 
under section 1671a(b) of this title or on which it receives notice from 
the administering authority of an investigation commenced under section 
1671a(a) of this title, shall make a determination, based upon the best 
information available to it at the time of the determination, of whether 
there is a reasonable indication that--
        ``(1) an industry in the United States--
            ``(A) is materially injured, or
            ``(B) is threatened with material injury, or
        ``(2) the establishment of an industry in the United States is 
    materially retarded,
by reason of imports of the merchandise which is the subject of the 
investigation by the administering authority. If that determination is 
negative, the investigation shall be terminated.''
    Subsec. (b)(1). Pub. L. 103-465, Sec. 270(a)(1)(B), substituted 
``countervailable subsidy'' for ``subsidy''.
    Pub. L. 103-465, Sec. 233(a)(5)(B), (6)(A)(iii), substituted 
``initiated'' for ``commenced'' and ``subject merchandise'' for 
``merchandise which is the subject of the investigation''.
    Pub. L. 103-465, Sec. 212(b)(1)(C)(i)(II), (III), substituted 
``based upon the information'' for ``based upon the best information'' 
and struck out at end ``If the determination of the administering 
authority under this subsection is affirmative, the determination shall 
include an estimate of the net subsidy.''
    Pub. L. 103-465, Sec. 212(b)(1)(C)(i)(I), as amended by Pub. L. 104-
295, substituted ``65 days after the date on which the administering 
authority initiates an investigation under section 1671a(c) of this 
title'' for ``85 days after the date on which a petition is filed under 
section 1671a(b) of this title''.
    Subsec. (b)(2). Pub. L. 103-465, Sec. 270(a)(1)(C), substituted 
``countervailable subsidy'' for ``subsidy''.
    Pub. L. 103-465, Sec. 264(c)(1), substituted ``paragraph (1)'' for 
``subsection (b)(1) of this section'' in two places and made technical 
amendments to references to section 1671a(b)(3) of this title and 
subsection (c) of this section to correct references to corresponding 
provisions of original act.
    Pub. L. 103-465, Sec. 212(b)(1)(C)(ii), substituted ``65 days after 
the date on which the administering authority initiates an investigation 
under section 1671a(c) of this title'' for ``85 days after the date on 
which the petition is filed under section 1671a(b) of this title''.
    Subsec. (b)(4). Pub. L. 103-465, Sec. 263(a), added par. (4).
    Subsec. (b)(5). Pub. L. 103-465, Sec. 283(a), added par. (5).
    Subsec. (c)(1). Pub. L. 103-465, Secs. 212(b)(1)(D), 
233(a)(6)(A)(iv), in concluding provisions, substituted ``130th day 
after the date on which the administering authority initiates an 
investigation under section 1671a(c) of this title'' for ``150th day 
after the date on which a petition is filed under section 1671a(b) of 
this title'' and ``initiated'' for ``commenced''.
    Subsec. (c)(1)(B)(i). Pub. L. 103-465, Sec. 270(a)(1)(D), (b)(1)(B), 
substituted ``countervailable subsidy'' for ``subsidy'' in subcl. (I) 
and ``countervailable subsidies'' for ``subsidies'' in subcl. (III).
    Subsec. (d). Pub. L. 103-465, Sec. 215(a)(1)(B), inserted concluding 
provisions.
    Subsec. (d)(1). Pub. L. 103-465, Sec. 264(a)(4), added par. (1). 
Former par. (1) redesignated (2).
    Pub. L. 103-465, Sec. 215(a)(1)(A), substituted ``warehouse, for 
consumption on or after the later of--'' and subpars. (A) and (B), for 
``warehouse, for consumption on or after the date of publication of the 
notice of the determination in the Federal Register,''.
    Subsec. (d)(2). Pub. L. 103-465, Sec. 264(a)(1)-(3), redesignated 
par. (1) as (2), inserted ``and'' at end, and struck out former par. (2) 
which read as follows: ``shall order the posting of a cash deposit, 
bond, or other security, as it deems appropriate, for each entry of the 
merchandise concerned equal to the estimated amount of the net subsidy, 
and''.
    Subsec. (e)(1). Pub. L. 103-465, Sec. 214(a)(1), in introductory 
provisions, struck out ``best'' before ``information'' and amended 
subpars. (A) and (B) generally. Prior to amendment, subpars. (A) and (B) 
read as follows:
    ``(A) the alleged subsidy is inconsistent with the Agreement, and
    ``(B) there have been massive imports of the class or kind of 
merchandise which is the subject of the investigation over a relatively 
short period.''
    Subsec. (e)(2). Pub. L. 103-465, Secs. 215(a)(2), 264(c)(2), 
substituted ``subsection (d)(2)'' for ``subsection (d)(1)'' and 
``warehouse, for consumption on or after the later of--'' and subpars. 
(A) and (B) for ``warehouse, for consumption on or after the date which 
is 90 days before the date on which suspension of liquidation was first 
ordered.''
    Subsec. (f). Pub. L. 103-465, Sec. 212(b)(1)(F), amended heading and 
text of subsec. (f) generally. Prior to amendment, text read as follows: 
``Whenever the Commission or the administering authority 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.''
    Subsec. (g)(1). Pub. L. 103-465, Sec. 233(a)(6)(B), substituted 
``initiation'' for ``commencement''.
    1988--Subsec. (b)(3). Pub. L. 100-418, Sec. 1326(d)(1), substituted 
``(F), or (G)'' for ``or (F)'' in two places.
    Subsec. (e)(1). Pub. L. 100-418, Sec. 1324(a)(2), inserted ``(at any 
time after the initiation of the investigation under this part)'' after 
``promptly'' in introductory provisions.
    1986--Subsecs. (g), (h). Pub. L. 99-514 redesignated subsec. (h) as 
(g) and substituted ``or 225 days, as appropriate, under section 
1671d(a)(1) of this title'' for ``days under section 1671d(a)(1) of this 
title or 225 days under section 1671d(a)(2) of this title, as 
appropriate'' in par. (2)(A), and ``or 225 days, as appropriate, under 
section 1671d(a)(1) of this title'' for ``days under section 1671d(a)(2) 
of this title'' in par. (2)(B)(ii).
    1984--Subsec. (b)(3). Pub. L. 98-573, Sec. 603, added par. (3).
    Subsec. (h). Pub. L. 98-573, Sec. 613(c), added subsec. (h).
    1983--Subsec. (b). Pub. L. 98-181 designated existing provisions as 
par. (1) and added par. (2).


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-465 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 this chapter after such date, see section 
291 of Pub. L. 103-465, set out as a note under section 1671 of this 
title.


                    Effective Date of 1988 Amendment

    Amendment by section 1324(a)(2) of Pub. L. 100-418 applicable with 
respect to investigations initiated after Aug. 23, 1988, and amendment 
by section 1326(d)(1) of Pub. L. 100-418 applicable with respect to 
investigations initiated after Aug. 23, 1988, and to reviews initiated 
under section 1673e(c) or 1675 of this title after Aug. 23, 1988, see 
section 1337(b), (c) of Pub. L. 100-418, set out as a note under section 
1671 of this title.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-573 effective Oct. 30, 1984, see section 
626(a) of Pub. L. 98-573, set out as a note under section 1671 of this 
title.


               Uruguay Round Agreements: Entry Into Force

    The Uruguay Round Agreements, including the World Trade Organization 
Agreement and agreements annexed to that Agreement, as referred to in 
section 3511(d) of this title, entered into force with respect to the 
United States on Jan. 1, 1995. See note set out under section 3511 of 
this title.


           Plan Amendments Not Required Until January 1, 1989

    For provisions directing that if any amendments made by subtitle A 
or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or title XVIII 
[Secs. 1801-1899A] of Pub. L. 99-514 require an amendment to any plan, 
such plan amendment shall not be required to be made before the first 
plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. 
L. 99-514, as amended, set out as a note under section 401 of Title 26, 
Internal Revenue Code.

                  Section Referred to in Other Sections

    This section is referred to in sections 1516a, 1671, 1671c, 1671d, 
1671e, 1671f, 1671g, 1673d, 1677, 1677f, 1677f-1, 1677i, 1677m of this 
title.
