To amend title VII of the Tariff Act of 1930 with respect to determining certain antidumping calculations for merchandise from former nonmarket economy countries.

July 15, 2003

Mr. LEVIN introduced the following bill; which was referred to the Committee on Ways and Means

To amend title VII of the Tariff Act of 1930 with respect to determining certain antidumping calculations for merchandise from former nonmarket economy countries.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Market-Based Antidumping Calculations Act'.

SEC. 2. SPECIAL VALUATION RULES FOR FORMER NONMARKET ECONOMY COUNTRIES.

Section 773 of the Tariff Act of 1930 (19 U.S.C. 1677b) is amended by adding at the end the following:

`(g) SPECIAL VALUATION RULES FOR FORMER NONMARKET ECONOMY COUNTRIES-

`(1) TREATMENT OF PRICES OR COSTS DISTORTED BY NONMARKET FORCES-

`(A) IN GENERAL- If the administering authority determines that the prices or costs of a good or service within a country formerly classified as a nonmarket economy country are not determined by market-based forces of demand and supply, so that accepting such prices or costs would distort in any material way the determination of normal value or cost of production of the subject merchandise, then the administering authority shall disregard those prices or costs and instead employ the values of the good or service in another market economy country or countries considered to be appropriate by the administering authority.

`(B) FACTORS REGARDING MARKET-BASED FORCES- The administering authority shall determine that the prices or costs of a good or service are not determined by market-based forces of demand and supply under subparagraph (A) if any of the following factors are present:

`(i) The prices or costs in question are extensively controlled by a national, regional, or local government.

`(ii) The prices or costs in question are stable over a significant period of time and no market-based explanation for that stability is demonstrated.

`(iii) The prices or costs in question are subject to monopolistic or monopsonistic forces.

`(iv) The prices or costs in question materially differ from prices charged by the same or a related supplier to a purchaser in another market economy country.

`(v) Such other factors as the administering authority considers appropriate.

`(2) DETERMINATIONS PURSUANT TO SUBSECTION (c)-

`(A) TOTAL COST OF MANUFACTURING SUBSTANTIALLY DETERMINED OUTSIDE MARKET FORCES- If the total cost of manufacturing of the subject merchandise calculated by the administering authority is substantially determined by values derived from prices or costs outside the home market under paragraph (1), then the administering authority shall deem the subject merchandise to have been produced outside of market-based forces of supply and demand, and shall determine the normal value of the subject merchandise pursuant to subsection (c).

`(B) UNRELIABLE FINANCIAL DATA- If in making a determination of normal value under this section the administering authority determines that the financial statements of a company within a country formerly classified as a nonmarket economy country are not in accordance with that country's generally accepted accounting principles, are unreliable, or otherwise do not reasonably reflect the costs associated with the production and sale of the subject merchandise, then the administering authority shall determine the normal value of the subject merchandise pursuant to subsection (c).'.

SEC. 3. EFFECTIVE DATE.

The amendments made by section 2 shall apply to proceedings under subtitle A, B, or C of title VII of the Tariff Act of 1930 that are initiated on or after the date of the enactment of this Act.

END