                        TITLE 19--CUSTOMS DUTIES
 
                      CHAPTER 12--TRADE ACT OF 1974
 
      SUBCHAPTER IV--TRADE RELATIONS WITH COUNTRIES NOT RECEIVING 
                       NONDISCRIMINATORY TREATMENT
 
  Part 2--Relief From Market Disruption to Industries and Diversion of 
                    Trade to the United States Market
 
Sec. 2451. Action to address market disruption


(a) Presidential action

    If a product of the People's Republic of China is being imported 
into the United States in such increased quantities or under such 
conditions as to cause or threaten to cause market disruption to the 
domestic producers of a like or directly competitive product, the 
President shall, in accordance with the provisions of this section, 
proclaim increased duties or other import restrictions with respect to 
such product, to the extent and for such period as the President 
considers necessary to prevent or remedy the market disruption.

(b) Initiation of an investigation

    (1) Upon the filing of a petition by an entity described in section 
2252(a) of this title, upon the request of the President or the United 
States Trade Representative (in this part referred to as the ``Trade 
Representative''), upon resolution of either the Committee on Ways and 
Means of the House of Representatives, or the Committee on Finance of 
the Senate (in this part referred to as the ``Committees'') or on its 
own motion, the United States International Trade Commission (in this 
part referred to as the ``Commission'') shall promptly make an 
investigation to determine whether products of the People's Republic of 
China are being imported into the United States in such increased 
quantities or under such conditions as to cause or threaten to cause 
market disruption to the domestic producers of like or directly 
competitive products.
    (2) The limitations on investigations set forth in section 
2252(h)(1) of this title shall apply to investigations conducted under 
this section.
    (3) The provisions of subsections (a)(8) and (i) of section 2252 of 
this title, relating to treatment of confidential business information, 
shall apply to investigations conducted under this section.
    (4) Whenever a petition is filed, or a request or resolution is 
received, under this subsection, the Commission shall transmit a copy 
thereof to the President, the Trade Representative, the Committee on 
Ways and Means of the House of Representatives, and the Committee on 
Finance of the Senate, except that in the case of confidential business 
information, the copy may include only nonconfidential summaries of such 
information.
    (5) 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 public hearings at which the 
Commission shall afford interested parties an opportunity to be present, 
to present evidence, to respond to the presentations of other parties, 
and otherwise to be heard.

(c) Market disruption

    (1) For purposes of this section, market disruption exists whenever 
imports of an article like or directly competitive with an article 
produced by a domestic industry are increasing rapidly, either 
absolutely or relatively, so as to be a significant cause of material 
injury, or threat of material injury, to the domestic industry.
    (2) For purposes of paragraph (1), the term ``significant cause'' 
refers to a cause which contributes significantly to the material injury 
of the domestic industry, but need not be equal to or greater than any 
other cause.

(d) Factors in determination

    In determining whether market disruption exists, the Commission 
shall consider objective factors, including--
        (1) the volume of imports of the product which is the subject of 
    the investigation;
        (2) the effect of imports of such product on prices in the 
    United States for like or directly competitive articles; and
        (3) the effect of imports of such product on the domestic 
    industry producing like or directly competitive articles.

The presence or absence of any factor under paragraph (1), (2), or (3) 
is not necessarily dispositive of whether market disruption exists.

(e) Time for Commission determinations

    The Commission shall make and transmit to the President and the 
Trade Representative its determination under subsection (b)(1) of this 
section at the earliest practicable time, but in no case later than 60 
days (or 90 days in the case of a petition requesting relief under 
subsection (i) of this section) after the date on which the petition is 
filed, the request or resolution is received, or the motion is adopted, 
under subsection (b) of this section. If the Commissioners voting are 
equally divided with respect to its determination, then the 
determination agreed upon by either group of Commissioners may be 
considered by the President and the Trade Representative as the 
determination of the Commission.

(f) Recommendations of Commission on proposed remedies

    If the Commission makes an affirmative determination under 
subsection (b) of this section, or a determination which the President 
or the Trade Representative may consider as affirmative under subsection 
(e) of this section, the Commission shall propose the amount of increase 
in, or imposition of, any duty or other import restrictions necessary to 
prevent or remedy the market disruption. Only those members of the 
Commission who agreed to the affirmative determination under subsection 
(b) of this section are eligible to vote on the proposed action to 
prevent or remedy market disruption. Members of the Commission who did 
not agree to the affirmative determination may submit, in the report 
required under subsection (g) of this section, separate views regarding 
what action, if any, should be taken to prevent or remedy market 
disruption.

(g) Report by Commission

    (1) Not later than 20 days after a determination under subsection 
(b) of this section is made, the Commission shall submit a report to the 
President and the Trade Representative.
    (2) The Commission shall include in the report required under 
paragraph (1) the following:
        (A) The determination made under subsection (b) of this section 
    and an explanation of the basis for the determination.
        (B) If the determination under subsection (b) of this section is 
    affirmative, or may be considered by the President or the Trade 
    Representative as affirmative under subsection (e) of this section, 
    the recommendations of the Commission on proposed remedies under 
    subsection (f) of this section and an explanation of the basis for 
    each recommendation.
        (C) Any dissenting or separate views by members of the 
    Commission regarding the determination and any recommendation 
    referred to in subparagraphs (A) and (B).
        (D) A description of--
            (i) the short- and long-term effects that implementation of 
        the action recommended under subsection (f) of this section is 
        likely to have on the petitioning domestic industry, on other 
        domestic industries, and on consumers; and
            (ii) the short- and long-term effects of not taking the 
        recommended action on the petitioning domestic industry, its 
        workers, and the communities where production facilities of such 
        industry are located, and on other domestic industries.

    (3) The Commission, after submitting a report to the President under 
paragraph (1), shall promptly make it available to the public (but shall 
not include confidential business information) and cause a summary 
thereof to be published in the Federal Register.

(h) Opportunity to present views and evidence on proposed measure and 
        recommendation to the President

    (1) Within 20 days after receipt of the Commission's report under 
subsection (g) of this section (or 15 days in the case of an affirmative 
preliminary determination under subsection (i)(1)(B) of this section), 
the Trade Representative shall publish in the Federal Register notice of 
any measure proposed by the Trade Representative to be taken pursuant to 
subsection (a) of this section and of the opportunity, including a 
public hearing, if requested, for importers, exporters, and other 
interested parties to submit their views and evidence on the 
appropriateness of the proposed measure and whether it would be in the 
public interest.
    (2) Within 55 days after receipt of the report under subsection (g) 
of this section (or 35 days in the case of an affirmative preliminary 
determination under subsection (i)(1)(B) of this section), the Trade 
Representative, taking into account the views and evidence received 
under paragraph (1) on the measure proposed by the Trade Representative, 
shall make a recommendation to the President concerning what action, if 
any, to take to prevent or remedy the market disruption.

(i) Critical circumstances

    (1) When a petition filed under subsection (b) of this section 
alleges that critical circumstances exist and requests that provisional 
relief be provided under this subsection with respect to the product 
identified in the petition, the Commission shall, not later than 45 days 
after the petition containing the request is filed--
        (A) determine whether delay in taking action under this section 
    would cause damage to the relevant domestic industry which would be 
    difficult to repair; and
        (B) if the determination under subparagraph (A) is affirmative, 
    make a preliminary determination of whether imports of the product 
    which is the subject of the investigation have caused or threatened 
    to cause market disruption.

If the Commissioners voting are equally divided with respect to either 
of its determinations, then the determination agreed upon by either 
group of Commissioners may be considered by the President and the Trade 
Representative as the determination of the Commission.
    (2) On the date on which the Commission completes its determinations 
under paragraph (1), the Commission shall transmit a report on the 
determinations to the President and the Trade Representative, including 
the reasons for its determinations. If the determinations under 
paragraph (1) are affirmative, or may be considered by the President or 
the Trade Representative as affirmative under paragraph (1), the 
Commission shall include in its report its recommendations on proposed 
provisional measures to be taken to prevent or remedy the market 
disruption. Only those members of the Commission who agreed to the 
affirmative determinations under paragraph (1) are eligible to vote on 
the proposed provisional measures to prevent or remedy market 
disruption. Members of the Commission who did not agree to the 
affirmative determinations may submit, in the report, dissenting or 
separate views regarding the determination and any recommendation of 
provisional measures referred to in this paragraph.
    (3) If the determinations under paragraph (1) are affirmative, or 
may be considered by the President or the Trade Representative as 
affirmative under paragraph (1), the Trade Representative shall, within 
10 days after receipt of the Commission's report, determine the amount 
or extent of provisional relief that is necessary to prevent or remedy 
the market disruption and shall provide a recommendation to the 
President on what provisional measures, if any, to take.
    (4)(A) The President shall determine whether to provide provisional 
relief and proclaim such relief, if any, within 10 days after receipt of 
the recommendation from the Trade Representative.
    (B) Such relief may take the form of--
        (i) the imposition of or increase in any duty;
        (ii) any modification, or imposition of any quantitative 
    restriction on the importation of an article into the United States; 
    or
        (iii) any combination of actions under clauses (i) and (ii).

    (C) Any provisional action proclaimed by the President pursuant to a 
determination of critical circumstances shall remain in effect not more 
than 200 days.
    (D) Provisional relief shall cease to apply upon the effective date 
of relief proclaimed under subsection (a) of this section, upon a 
decision by the President not to provide such relief, or upon a negative 
determination by the Commission under subsection (b) of this section.

(j) Agreements with the People's Republic of China

    (1) The Trade Representative is authorized to enter into agreements 
for the People's Republic of China to take such action as necessary to 
prevent or remedy market disruption, and should seek to conclude such 
agreements before the expiration of the 60-day consultation period 
provided for under the product-specific safeguard provision of the 
Protocol of Accession of the People's Republic of China to the WTO, 
which shall commence not later than 5 days after the Trade 
Representative receives an affirmative determination provided for in 
subsection (e) of this section or a determination which the Trade 
Representative considers to be an affirmative determination pursuant to 
subsection (e) of this section.
    (2) If no agreement is reached with the People's Republic of China 
pursuant to consultations under paragraph (1), or if the President 
determines than \1\ an agreement reached pursuant to such consultations 
is not preventing or remedying the market disruption at issue, the 
President shall provide import relief in accordance with subsection (a) 
of this section.
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    \1\ So in original. Probably should be ``that''.
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(k) Standard for Presidential action

    (1) Within 15 days after receipt of a recommendation from the Trade 
Representative under subsection (h) of this section on the appropriate 
action, if any, to take to prevent or remedy the market disruption, the 
President shall provide import relief for such industry pursuant to 
subsection (a) of this section, unless the President determines that 
provision of such relief is not in the national economic interest of the 
United States or, in extraordinary cases, that the taking of action 
pursuant to subsection (a) of this section would cause serious harm to 
the national security of the United States.
    (2) The President may determine under paragraph (1) that providing 
import relief is not in the national economic interest of the United 
States only if the President finds that the taking of such action would 
have an adverse impact on the United States economy clearly greater than 
the benefits of such action.

(l) Publication of decision and reports

    (1) The President's decision, including the reasons therefor and the 
scope and duration of any action taken, shall be published in the 
Federal Register.
    (2) The Commission shall promptly make public any report transmitted 
under this section, but shall not make public any information which the 
Commission determines to be confidential, and shall publish notice of 
such report in the Federal Register.

(m) Effective date of relief

    Import relief under this section shall take effect not later than 15 
days after the President's determination to provide such relief.

(n) Modifications of relief

    (1) At any time after the end of the 6-month period beginning on the 
date on which relief under subsection (m) of this section first takes 
effect, the President may request that the Commission provide a report 
on the probable effect of the modification, reduction, or termination of 
the relief provided on the relevant industry. The Commission shall 
transmit such report to the President within 60 days of the request.
    (2) The President may, after receiving a report from the Commission 
under paragraph (1), take such action to modify, reduce, or terminate 
relief that the President determines is necessary to continue to prevent 
or remedy the market disruption at issue.
    (3) Upon the granting of relief under subsection (k) of this 
section, the Commission shall collect such data as is necessary to allow 
it to respond rapidly to a request by the President under paragraph (1).

(o) 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 relief provided under subsection (k) of this section is to 
terminate, the Commission shall investigate to determine whether action 
under this section continues to be necessary to prevent or remedy market 
disruption.
    (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 subsection (m) of this section is to 
terminate.
    (4) The President, after receiving an affirmative determination from 
the Commission under paragraph (3), may extend the effective period of 
any action under this section if the President determines that the 
action continues to be necessary to prevent or remedy the market 
disruption.

(Pub. L. 93-618, title IV, Sec. 421, as added Pub. L. 106-286, div. A, 
title I, Sec. 103(a)(3), Oct. 10, 2000, 114 Stat. 882.)

                          Codification

    This part, referred to in subsec. (b)(1), was in the original ``this 
subtitle'' which was translated as reading ``this chapter'', meaning 
chapter 2 of title IV of Pub. L. 93-618, as added, which enacted this 
part, to reflect the probable intent of Congress, because title IV of 
Pub. L. 93-618 contains no subtitles.

                  Section Referred to in Other Sections

    This section is referred to in section 2451b of this title.
