                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 4--TARIFF ACT OF 1930
 
           SUBTITLE IV--COUNTERVAILING AND ANTIDUMPING DUTIES
 
                       Part IV--General Provisions
 
Sec. 1677j. Prevention of circumvention of antidumping and 
        countervailing duty orders
        

(a) Merchandise completed or assembled in United States

                           (1) In general

        If--
            (A) merchandise sold in the United States is of the same 
        class or kind as any other merchandise that is the subject of--
                (i) an antidumping duty order issued under section 1673e 
            of this title,
                (ii) a finding issued under the Antidumping Act, 1921, 
            or
                (iii) a countervailing duty order issued under section 
            1671e of this title or section 1303 \1\ of this title,
---------------------------------------------------------------------------
    \1\ See References in Text note below.

            (B) such merchandise sold in the United States is completed 
        or assembled in the United States from parts or components 
        produced in the foreign country with respect to which such order 
        or finding applies,
            (C) the process of assembly or completion in the United 
        States is minor or insignificant, and
            (D) the value of the parts or components referred to in 
        subparagraph (B) is a significant portion of the total value of 
        the merchandise,

    the administering authority, after taking into account any advice 
    provided by the Commission under subsection (e) of this section, may 
    include within the scope of such order or finding the imported parts 
    or components referred to in subparagraph (B) that are used in the 
    completion or assembly of the merchandise in the United States at 
    any time such order or finding is in effect.

          (2) Determination of whether process is minor or 
                                insignificant

        In determining whether the process of assembly or completion is 
    minor or insignificant under paragraph (1)(C), the administering 
    authority shall take into account--
            (A) the level of investment in the United States,
            (B) the level of research and development in the United 
        States,
            (C) the nature of the production process in the United 
        States,
            (D) the extent of production facilities in the United 
        States, and
            (E) whether the value of the processing performed in the 
        United States represents a small proportion of the value of the 
        merchandise sold in the United States.

                       (3) Factors to consider

        In determining whether to include parts or components in a 
    countervailing or antidumping duty order or finding under paragraph 
    (1), the administering authority shall take into account such 
    factors as--
            (A) the pattern of trade, including sourcing patterns,
            (B) whether the manufacturer or exporter of the parts or 
        components is affiliated with the person who assembles or 
        completes the merchandise sold in the United States from the 
        parts or components produced in the foreign country with respect 
        to which the order or finding described in paragraph (1) 
        applies, and
            (C) whether imports into the United States of the parts or 
        components produced in such foreign country have increased after 
        the initiation of the investigation which resulted in the 
        issuance of such order or finding.

(b) Merchandise completed or assembled in other foreign countries

                           (1) In general

        If--
            (A) merchandise imported into the United States is of the 
        same class or kind as any merchandise produced in a foreign 
        country that is the subject of--
                (i) an antidumping duty order issued under section 1673e 
            of this title,
                (ii) a finding issued under the Antidumping Act, 1921, 
            or
                (iii) a countervailing duty order issued under section 
            1671e of this title or section 1303 \1\ of this title,

            (B) before importation into the United States, such imported 
        merchandise is completed or assembled in another foreign country 
        from merchandise which--
                (i) is subject to such order or finding, or
                (ii) is produced in the foreign country with respect to 
            which such order or finding applies,

            (C) the process of assembly or completion in the foreign 
        country referred to in subparagraph (B) is minor or 
        insignificant,
            (D) the value of the merchandise produced in the foreign 
        country to which the antidumping duty order applies is a 
        significant portion of the total value of the merchandise 
        exported to the United States, and
            (E) the administering authority determines that action is 
        appropriate under this paragraph to prevent evasion of such 
        order or finding,

    the administering authority, after taking into account any advice 
    provided by the Commission under subsection (e) of this section, may 
    include such imported merchandise within the scope of such order or 
    finding at any time such order or finding is in effect.

          (2) Determination of whether process is minor or 
                                insignificant

        In determining whether the process of assembly or completion is 
    minor or insignificant under paragraph (1)(C), the administering 
    authority shall take into account--
            (A) the level of investment in the foreign country,
            (B) the level of research and development in the foreign 
        country,
            (C) the nature of the production process in the foreign 
        country,
            (D) the extent of production facilities in the foreign 
        country, and
            (E) whether the value of the processing performed in the 
        foreign country represents a small proportion of the value of 
        the merchandise imported into the United States.

                       (3) Factors to consider

        In determining whether to include merchandise assembled or 
    completed in a foreign country in a countervailing duty order or an 
    antidumping duty order or finding under paragraph (1), the 
    administering authority shall take into account such factors as--
            (A) the pattern of trade, including sourcing patterns,
            (B) whether the manufacturer or exporter of the merchandise 
        described in paragraph (1)(B) is affiliated with the person who 
        uses the merchandise described in paragraph (1)(B) to assemble 
        or complete in the foreign country the merchandise that is 
        subsequently imported into the United States, and
            (C) whether imports into the foreign country of the 
        merchandise described in paragraph (1)(B) have increased after 
        the initiation of the investigation which resulted in the 
        issuance of such order or finding.

(c) Minor alterations of merchandise

                           (1) In general

        The class or kind of merchandise subject to--
            (A) an investigation under this subtitle,
            (B) an antidumping duty order issued under section 1673e of 
        this title,
            (C) a finding issued under the Antidumping Act, 1921, or
            (D) a countervailing duty order issued under section 1671e 
        of this title or section 1303 \2\ of this title,
---------------------------------------------------------------------------
    \2\ See References in Text note below.

    shall include articles altered in form or appearance in minor 
    respects (including raw agricultural products that have undergone 
    minor processing), whether or not included in the same tariff 
    classification.

                            (2) Exception

        Paragraph (1) shall not apply with respect to altered 
    merchandise if the administering authority determines that it would 
    be unnecessary to consider the altered merchandise within the scope 
    of the investigation, order, or finding.

(d) Later-developed merchandise

                           (1) In general

        For purposes of determining whether merchandise developed after 
    an investigation is initiated under this subtitle or section 1303 
    \2\ of this title (hereafter in this paragraph referred to as the 
    ``later-developed merchandise'') is within the scope of an 
    outstanding antidumping or countervailing duty order issued under 
    this subtitle or section 1303 \2\ of this title as a result of such 
    investigation, the administering authority shall consider whether--
            (A) the later-developed merchandise has the same general 
        physical characteristics as the merchandise with respect to 
        which the order was originally issued (hereafter in this 
        paragraph referred to as the ``earlier product''),
            (B) the expectations of the ultimate purchasers of the 
        later-developed merchandise are the same as for the earlier 
        product,
            (C) the ultimate use of the earlier product and the later-
        developed merchandise are the same,
            (D) the later-developed merchandise is sold through the same 
        channels of trade as the earlier product, and
            (E) the later-developed merchandise is advertised and 
        displayed in a manner similar to the earlier product.

    The administering authority shall take into account any advice 
    provided by the Commission under subsection (e) of this section 
    before making a determination under this subparagraph.

                      (2) Exclusion from orders

        The administering authority may not exclude a later-developed 
    merchandise from a countervailing or antidumping duty order merely 
    because the merchandise--
            (A) is classified under a tariff classification other than 
        that identified in the petition or the administering authority's 
        prior notices during the proceeding, or
            (B) permits the purchaser to perform additional functions, 
        unless such additional functions constitute the primary use of 
        the merchandise and the cost of the additional functions 
        constitute more than a significant proportion of the total cost 
        of production of the merchandise.

(e) Commission advice

          (1) Notification to Commission of proposed action

        Before making a determination--
            (A) under subsection (a) of this section with respect to 
        merchandise completed or assembled in the United States (other 
        than minor completion or assembly),
            (B) under subsection (b) of this section with respect to 
        merchandise completed or assembled in other foreign countries, 
        or
            (C) under subsection (d) of this section with respect to any 
        later-developed merchandise which incorporates a significant 
        technological advance or significant alteration of an earlier 
        product,

    with respect to an antidumping or countervailing duty order or 
    finding as to which the Commission has made an affirmative injury 
    determination, the administering authority shall notify the 
    Commission of the proposed inclusion of such merchandise in such 
    countervailing or antidumping order or finding. Notwithstanding any 
    other provision of law, a decision by the administering authority 
    regarding whether any merchandise is within a category for which 
    notice is required under this paragraph is not subject to judicial 
    review.

                    (2) Request for consultation

        After receiving notice under paragraph (1), the Commission may 
    request consultations with the administering authority regarding the 
    inclusion. Upon the request of the Commission, the administering 
    authority shall consult with the Commission and any such 
    consultation shall be completed within 15 days after the date of the 
    request.

                        (3) Commission advice

        If the Commission believes, after consultation under paragraph 
    (2), that a significant injury issue is presented by the proposed 
    inclusion, the Commission may provide written advice to the 
    administering authority as to whether the inclusion would be 
    inconsistent with the affirmative determination of the Commission on 
    which the order or finding is based. If the Commission decides to 
    provide such written advice, it shall promptly notify the 
    administering authority of its intention to do so, and must provide 
    such advice within 60 days after the date of notification under 
    paragraph (1). For purposes of formulating its advice with respect 
    to merchandise completed or assembled in the United States from 
    parts or components produced in a foreign country, the Commission 
    shall consider whether the inclusion of such parts or components 
    taken as a whole would be inconsistent with its prior affirmative 
    determination.

(f) Time limits for administering authority determinations

    The administering authority shall, to the maximum extent 
practicable, make the determinations under this section within 300 days 
from the date of the initiation of a countervailing duty or antidumping 
circumvention inquiry under this section.

(June 17, 1930, ch. 497, title VII, Sec. 781, as added Pub. L. 100-418, 
title I, Sec. 1321(a), Aug. 23, 1988, 102 Stat. 1192; amended Pub. L. 
103-465, title II, Sec. 230, Dec. 8, 1994, 108 Stat. 4891.)

                       References in Text

    The Antidumping Act, 1921, referred to in subsecs. (a)(1)(A)(ii), 
(b)(1)(A)(ii), and (c)(1)(C), is act May 27, 1921, ch. 14, title II, 42 
Stat. 11, as amended, which was classified generally to sections 160 to 
171 of this title, and was repealed by Pub. L. 96-39, title I, 
Sec. 106(a), July 26, 1979, 93 Stat. 193.
    Section 1303 of this title, referred to in subsecs. (a)(1)(A)(iii), 
(b)(1)(A)(iii), (c)(1)(D), and (d)(1), 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--Subsecs. (a), (b). Pub. L. 103-465, Sec. 230(a), amended 
subsecs. (a) and (b) generally, to include provisions relating to 
whether process of assembly or completion of merchandise in United 
States or foreign countries is minor or insignificant.
    Subsec. (f). Pub. L. 103-465, Sec. 230(b), added subsec. (f).


                    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

    Section applicable with respect to articles entered, or withdrawn 
from warehouse for consumption, on or after Aug. 23, 1988, see section 
1337(d) of Pub. L. 100-418, set out as an Effective Date of 1988 
Amendment note under section 1671 of this title.
