                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 4--TARIFF ACT OF 1930
 
           SUBTITLE IV--COUNTERVAILING AND ANTIDUMPING DUTIES
 
                       Part IV--General Provisions
 
Sec. 1677i. Downstream product monitoring


(a) Petition requesting monitoring

                           (1) In general

        A domestic producer of an article that is like a component part 
    or a downstream product may petition the administering authority to 
    designate a downstream product for monitoring under subsection (b) 
    of this section. The petition shall specify--
            (A) the downstream product,
            (B) the component product incorporated into such downstream 
        product, and
            (C) the reasons for suspecting that the imposition of 
        antidumping or countervailing duties has resulted in a diversion 
        of exports of the component part into increased production and 
        exportation to the United States of such downstream product.

                (2) Determination regarding petition

        Within 14 days after receiving a petition submitted under 
    paragraph (1), the administering authority shall determine--
            (A) whether there is a reasonable likelihood that imports 
        into the United States of the downstream product will increase 
        as an indirect result of any diversion with respect to the 
        component part, and
            (B) whether--
                (i) the component part is already subject to monitoring 
            to aid in the enforcement of a bilateral arrangement (within 
            the meaning of section 804 of the Trade and Tariff Act of 
            1984),
                (ii) merchandise related to the component part and 
            manufactured in the same foreign country in which the 
            component part is manufactured has been the subject of a 
            significant number of investigations suspended under section 
            1671c or 1673c of this title or countervailing or 
            antidumping duty orders issued under this subtitle or 
            section 1303 \1\ of this title, or
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                (iii) merchandise manufactured or exported by the 
            manufacturer or exporter of the component part that is 
            similar in description and use to the component part has 
            been the subject of at least 2 investigations suspended 
            under section 1671c or 1673c of this title or countervailing 
            or antidumping duty orders issued under this subtitle or 
            section 1303 \1\ of this title.

                  (3) Factors to take into account

        In making a determination under paragraph (2)(A), the 
    administering authority may, if appropriate, take into account such 
    factors as--
            (A) the value of the component part in relation to the value 
        of the downstream product,
            (B) the extent to which the component part has been 
        substantially transformed as a result of its incorporation into 
        the downstream product, and
            (C) the relationship between the producers of component 
        parts and producers of downstream products.

                  (4) Publication of determination

        The administering authority shall publish in the Federal 
    Register notice of each determination made under paragraph (2) and, 
    if the determination made under paragraph (2)(A) and a determination 
    made under any subparagraph of paragraph (2)(B) are affirmative, 
    shall transmit a copy of such determinations and the petition to the 
    Commission.

          (5) Determinations not subject to judicial review

        Notwithstanding any other provision of law, any determination 
    made by the administering authority under paragraph (2) shall not be 
    subject to judicial review.

(b) Monitoring by Commission

                           (1) In general

        If the determination made under subsection (a)(2)(A) of this 
    section and a determination made under any clause of subsection 
    (a)(2)(B) of this section with respect to a petition are 
    affirmative, the Commission shall immediately commence monitoring of 
    trade in the downstream product that is the subject of the 
    determination made under subsection (a)(2)(A) of this section. If 
    the Commission finds that imports of a downstream product being 
    monitored increased during any calendar quarter by 5 percent or more 
    over the preceding quarter, the Commission shall analyze that 
    increase in the context of overall economic conditions in the 
    product sector.

                             (2) Reports

        The Commission shall make quarterly reports to the administering 
    authority regarding the monitoring and analyses conducted under 
    paragraph (1). The Commission shall make the reports available to 
    the public.

(c) Action on basis of monitoring reports

    The administering authority shall review the information in the 
reports submitted by the Commission under subsection (b)(2) of this 
section and shall--
        (1) consider the information in determining whether to initiate 
    an investigation under section 1671a(a) or 1673a(a) of this title 
    regarding any downstream product, and
        (2) request the Commission to cease monitoring any downstream 
    product if the information indicates that imports into the United 
    States are not increasing and there is no reasonable likelihood of 
    diversion with respect to component parts.

(d) Definitions

    For purposes of this section--
        (1) The term ``component part'' means any imported article 
    that--
            (A) during the 5-year period ending on the date on which the 
        petition is filed under subsection (a) of this section, has been 
        subject to--
                (i) a countervailing or antidumping duty order issued 
            under this subtitle or section 1303 \2\ of this title that 
            requires the deposit of estimated countervailing or 
            antidumping duties imposed at a rate of at least 15 percent 
            ad valorem, or
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                (ii) an agreement entered into under section 1671c, 
            1673c, or 1303 \2\ of this title after a preliminary 
            affirmative determination under section 1671b(b), 
            1673b(b)(1), or 1303 \2\ of this title was made by the 
            administering authority which included a determination that 
            the estimated net countervailable subsidy was at least 15 
            percent ad valorem or that the estimated average amount by 
            which the normal value exceeded the export price (or the 
            constructed export price) was at least 15 percent ad 
            valorem, and

            (B) because of its inherent characteristics, is routinely 
        used as a major part, component, assembly, subassembly, or 
        material in a downstream product.

        (2) The term ``downstream product'' means any manufactured 
    article--
            (A) which is imported into the United States, and
            (B) into which is incorporated any component part.

(June 17, 1930, ch. 497, title VII, Sec. 780, as added Pub. L. 100-418, 
title I, Sec. 1320(a), Aug. 23, 1988, 102 Stat. 1189; amended Pub. L. 
103-465, title II, Secs. 233(a)(1)(E), (2)(A)(vi), 261(d)(1)(B)(iv), 
270(a)(1)(M), Dec. 8, 1994, 108 Stat. 4898, 4910, 4917.)

                       References in Text

    Section 804 of the Trade and Tariff Act of 1984, referred to in 
subsec. (a)(2)(B)(i), is section 804 of Pub. L. 98-573, which is set out 
as a note under section 2253 of this title.
    Section 1303 of this title, referred to in subsecs. (a)(2)(B)(ii), 
(iii) and (d)(1)(A)(i), (ii), is defined in section 1677(26) of this 
title to mean section 1330 as in effect on the day before Jan. 1, 1995.


                               Amendments

    1994--Subsec. (c)(1). Pub. L. 103-465, Sec. 261(d)(1)(B)(iv), 
substituted ``or 1673a(a)'' for ``, 1673a(a), or 1303''.
    Subsec. (d)(1)(A)(ii). Pub. L. 103-465, Sec. 270(a)(1)(M), inserted 
``countervailable'' before ``subsidy''.
    Pub. L. 103-465, Sec. 233(a)(1)(E), (2)(A)(vi), substituted ``normal 
value'' for ``foreign market value'' and ``export price (or the 
constructed export price)'' for ``United States price''.


                    Effective Date of 1994 Amendment

    Amendment by sections 233(a)(1)(E), (2)(A)(vi) and 270(a)(1)(M) of 
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.
    Amendment by section 261(d)(1)(B)(iv) of Pub. L. 103-465 effective 
on the effective date of title II of Pub. L. 103-465, Jan. 1, 1995, see 
section 261(d)(2) of Pub. L. 103-465, set out as a note under section 
1315 of this title.
