                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 12--TRADE ACT OF 1974
 
     SUBCHAPTER II--RELIEF FROM INJURY CAUSED BY IMPORT COMPETITION
 
      Part 1--Positive Adjustment by Industries Injured by Imports
 
Sec. 2254. Monitoring, modification, and termination of action


(a) Monitoring

    (1) So long as any action taken under section 2253 of this title 
remains in effect, the Commission shall monitor developments with 
respect to the domestic industry, including the progress and specific 
efforts made by workers and firms in the domestic industry to make a 
positive adjustment to import competition.
    (2) If the initial period during which the action taken under 
section 2253 of this title is in effect exceeds 3 years, or if an 
extension of such action exceeds 3 years, the Commission shall submit a 
report on the results of the monitoring under paragraph (1) to the 
President and to the Congress not later than the date that is the mid-
point of the initial period, and of each such extension, during which 
the action is in effect.
    (3) In the course of preparing each report under paragraph (2), the 
Commission shall hold a hearing at which interested persons shall be 
given a reasonable opportunity to be present, to produce evidence, and 
to be heard.
    (4) Upon request of the President, the Commission shall advise the 
President of its judgment as to the probable economic effect on the 
industry concerned of any reduction, modification, or termination of the 
action taken under section 2253 of this title which is under 
consideration.

(b) Reduction, modification, and termination of action

    (1) Action taken under section 2253 of this title may be reduced, 
modified, or terminated by the President (but not before the President 
receives the report required under subsection (a)(2)(A) of this section) 
if the President--
        (A) after taking into account any report or advice submitted by 
    the Commission under subsection (a) of this section and after 
    seeking the advice of the Secretary of Commerce and the Secretary of 
    Labor, determines, on the basis that either--
            (i) the domestic industry has not made adequate efforts to 
        make a positive adjustment to import competition, or
            (ii) the effectiveness of the action taken under section 
        2253 of this title has been impaired by changed economic 
        circumstances,

    that changed circumstances warrant such reduction, or termination; 
    or
        (B) determines, after a majority of the representatives of the 
    domestic industry submits to the President a petition requesting 
    such reduction, modification, or termination on such basis, that the 
    domestic industry has made a positive adjustment to import 
    competition.

    (2) Notwithstanding paragraph (1), the President is authorized to 
take such additional action under section 2253 of this title as may be 
necessary to eliminate any circumvention of any action previously taken 
under such section.
    (3) Notwithstanding paragraph (1), the President may, after receipt 
of a Commission determination under section 3538(a)(4) of this title and 
consulting with the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate, reduce, 
modify, or terminate action taken under section 2253 of this title.

(c) Extension of action

    (1) Upon request of the President, or upon petition on behalf of the 
industry concerned filed with the Commission not earlier than the date 
which is 9 months, and not later than the date which is 6 months, before 
the date any action taken under section 2253 of this title is to 
terminate, the Commission shall investigate to determine whether action 
under section 2253 of this title continues to be necessary to prevent or 
remedy serious injury and whether there is evidence that the industry is 
making a positive adjustment to import competition.
    (2) The Commission shall publish notice of the commencement of any 
proceeding under this subsection in the Federal Register and shall, 
within a reasonable time thereafter, hold a public hearing at which the 
Commission shall afford interested parties and consumers an opportunity 
to be present, to present evidence, and to respond to the presentations 
of other parties and consumers, and otherwise to be heard.
    (3) The Commission shall transmit to the President a report on its 
investigation and determination under this subsection not later than 60 
days before the action under section 2253 of this title is to terminate, 
unless the President specifies a different date.

(d) Evaluation of effectiveness of action

    (1) After any action taken under section 2253 of this title has 
terminated, the Commission shall evaluate the effectiveness of the 
actions in facilitating positive adjustment by the domestic industry to 
import competition, consistent with the reasons set out by the President 
in the report submitted to the Congress under section 2253(b) of this 
title.
    (2) During the course of the evaluation conducted under paragraph 
(1), the Commission shall, after reasonable public notice, hold a 
hearing on the effectiveness of the action. All interested persons shall 
have the opportunity to attend such hearing and to present evidence or 
testimony at such hearing.
    (3) A report on the evaluation made under paragraph (1) and the 
hearings held under paragraph (2) shall be submitted by the Commission 
to the President and to the Congress by no later than the 180th day 
after the day on which the actions taken under section 2253 of this 
title terminated.

(e) Other provisions

    (1) Action by the President under this part may be taken without 
regard to the provisions of section 2136(a) of this title but only after 
consideration of the relation of such actions to the international 
obligations of the United States.
    (2) If the Commission treats as the domestic industry production 
located in a major geographic area of the United States under section 
2252(c)(4)(C) of this title, then the President shall take into account 
the geographic concentration of domestic production and of imports in 
that area in taking any action authorized under paragraph (1).

(Pub. L. 93-618, title II, Sec. 204, as added Pub. L. 100-418, title I, 
Sec. 1401(a), Aug. 23, 1988, 102 Stat. 1238; amended Pub. L. 100-647, 
title IX, Sec. 9001(a)(8), Nov. 10, 1988, 102 Stat. 3807; Pub. L. 103-
465, title I, Sec. 129(a)(7), title III, Sec. 302(c), (d), Dec. 8, 1994, 
108 Stat. 4837, 4936.)


                               Amendments

    1994--Subsec. (a)(2). Pub. L. 103-465, Sec. 302(c)(1), amended par. 
(2) generally. Prior to amendment, par. (2) read as follows: ``The 
Commission shall submit a report on the results of the monitoring under 
paragraph (1) to the President and to the Congress not later than--
        ``(A) the 2nd-anniversary of the day on which the action under 
    section 2253 of this title first took effect; and
        ``(B) the last day of each 2-year period occurring after the 2-
    year period referred to in subparagraph (A).''
    Subsec. (a)(4). Pub. L. 103-465, Sec. 302(c)(2), struck out 
``extension,'' before ``reduction,''.
    Subsec. (b)(3). Pub. L. 103-465, Sec. 129(a)(7), added par. (3).
    Subsecs. (c) to (e). Pub. L. 103-465, Sec. 302(d), added subsec. (c) 
and redesignated former subsecs. (c) and (d) as (d) and (e), 
respectivley.
    1988--Subsecs. (c) to (e). Pub. L. 100-647 redesignated subsecs. (d) 
and (e) as (c) and (d), respectively.


                    Effective Date of 1994 Amendment

    Amendment by section 129(a)(7) of Pub. L. 103-465 effective on the 
date on which the WTO Agreement enters into force with respect to the 
United States [Jan. 1, 1995], see section 130 of Pub. L. 103-465, set 
out as an Effective Date note under section 3531 of this title.
    Amendment by section 302(c), (d) of Pub. L. 103-465 effective on the 
date on which the WTO Agreement enters into force with respect to the 
United States [Jan. 1, 1995], see section 304(a) of Pub. L. 103-465, set 
out as a note under section 2252 of this title.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-647 applicable as if such amendment took 
effect on Aug. 23, 1988, see section 9001(b) of Pub. L. 100-647, set out 
as an Effective and Termination Dates of 1988 Amendments note under 
section 58c of this title.


                             Effective Date

    Section effective Aug. 23, 1988, and applicable with respect to 
investigations initiated under this part on or after that date, see 
section 1401(c) of Pub. L. 100-418, set out as an Effective Date of 1988 
Amendment note under section 2251 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1330, 2133, 2251, 2253, 3203 
of this title.
