,i #aacth ,,congress #ast ,session ,h4 ,r4 #aff ,,in ,,the ,,house ,,of ,,representatives ,january #d1 #bjac ,mr4 ,boustany 7for himself and ,mr4 ,richmond7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to prevent the evasion of antidumping and countervailing duty orders1 and for other purposes4 #a4 ,short title and table of contents 7a7 ,short title ,this ,act may be cited as the ,preventing ,recurring ,trade ,evasion and ,circumvention ,act or ,,protect ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title and table of contents4 ,sec4 #b4 ,definitions4 ,sec4 #c4 ,application to ,canada and ,mexico4 ,title ,i--,actions relating to enforcement of trade remedy laws ,sec4 #aja4 ,trade ,remedy ,law ,enforcement ,division4 ,sec4 #ajb4 ,collection of information on evasion of trade remedy laws4 ,sec4 #ajc4 ,access to information4 ,sec4 #ajd4 ,cooperation with foreign countries on preventing evasion of trade remedy laws4 ,sec4 #aje4 ,trade negotiating objectives4 ,title ,,ii--,other matters ,sec4 #bja4 ,allocation and training of personnel4 ,sec4 #bjb4 ,annual report on prevention of evasion of antidumping and countervailing duty orders4 ,sec4 #bjc4 ,addressing circumvention by new shippers4 #b4 ,definitions ,in this ,act3 7#a7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,finance and the ,committee on ,appropriations of the ,senate2 and 7,b7 the ,committee on ,ways and ,means and the ,committee on ,appropriations of the ,house of ,representatives4 7#b7 ,commissioner ,the term ,commissioner means the ,commissioner responsible for ,u4,s4 ,customs and ,border ,protection4 7#c7 ,covered merchandise ,the term covered merchandise means merchandise that is subject to-- 7,a7 a countervailing duty order issued under section #gjf of the ,tariff ,act of #aicj2 or 7,b7 an antidumping duty order issued under section #gcf of the ,tariff ,act of #aicj4 7#d7 ,eligible small business 7,a7 ,in general ,the term eligible small business means any business concern which1 in the ,commissioner's judgment1 due to its small size1 has neither adequate internal resources nor financial ability to obtain qualified outside assistance in preparing and submitting for consideration allegations of evasion4 7,b7 ,non-reviewability ,any agency decision regarding whether a business concern is an eligible small business for purposes of section #aja7;b77#c7 is not reviewable by any other agency or by any court4 7#e7 ,enter2 entry ,the terms enter and entry refer to the entry1 or withdrawal from warehouse for consumption1 in the customs territory of the ,united ,states4 7#f7 ,evade2 evasion ,the terms evade and evasion refer to entering covered merchandise into the customs territory of the ,united ,states by means of any document or electronically transmitted data or information1 written or oral statement1 or act that is material and false1 or any omission that is material1 and that results in any cash deposit or other security or any amount of applicable antidumping or countervailing duties being reduced or not being applied with respect to the merchandise4 7#g7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury4 7#h7 ,trade remedy laws ,the term trade remedy laws means title ,,vii of the ,tariff ,act of #aicj4 #c4 ,application to ,canada and ,mexico ,pursuant to article #aijb of the ,north ,american ,free ,trade ,agreement and section #djh of the ,north ,american ,free ,trade ,agreement ,implementation ,act 7#ai ,u4,s4,c4 #cdch71 this ,act and the amendments made by this ,act shall apply with respect to goods from ,canada and ,mexico4 ,i ,actions relating to enforcement of trade remedy laws #aja4 ,trade ,remedy ,law ,enforcement ,division 7a7 ,establishment 7#a7 ,in general ,the ,secretary of ,homeland ,security shall establish and maintain within the ,office of ,international ,trade of ,u4,s4 ,customs and ,border ,protection1 established under section #b7;d7 of the ,act of ,march #c1 #aibg 7#dd ,stat4 #acha1 chapter #cdh2 #ai ,u4,s4,c4 #bjgb7;d771 a ,trade ,remedy ,law ,enforcement ,division4 7#b7 ,composition ,the ,trade ,law ,remedy ,enforcement ,division shall be composed of-- 7,a7 headquarters personnel led by a ,director1 who shall report to the ,assistant ,commissioner of the ,office of ,international ,trade2 and 7,b7 a ,national ,targeting and ,analysis ,group dedicated to preventing and countering evasion4 7#c7 ,duties ,the ,trade ,remedy ,law ,enforcement ,division shall be dedicated-- 7,a7 to the development and administration of policies to prevent and counter evasion2 7,b7 to direct enforcement and compliance assessment activities concerning evasion2 7,c7 to the development and conduct of commercial risk assessment targeting with respect to cargo destined for the ,united ,states in accordance with subsection 7c72 7,d7 to issuing ,trade ,alerts described in subsection 7d72 and 7,e7 to the development of policies for the application of single entry and continuous bonds for entries of covered merchandise to sufficiently protect the collection of antidumping and countervailing duties commensurate with the level of risk of noncollection4 7b7 ,duties of ,director ,the duties of the ,director of the ,trade ,remedy ,law ,enforcement ,division shall include-- 7#a7 directing the trade enforcement and compliance assessment activities of ,u4,s4 ,customs and ,border ,protection that concern evasion2 7#b7 facilitating1 promoting1 and coordinating cooperation and the exchange of information between ,u4,s4 ,customs and ,border ,protection1 ,u4,s4 ,immigration and ,customs ,enforcement1 and other relevant agencies regarding evasion2 7#c7 notifying on a timely basis the administering authority 7as defined in section #gga7a7 of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #afgg7a777 and the ,commission 7as defined in section #gga7b7 of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #afgg7b777 of any finding1 determination1 civil action1 or criminal action taken by ,u4,s4 ,customs and ,border ,protection or other ,federal agency regarding evasion2 and 7#d7 serving as the primary liaison between ,u4,s4 ,customs and ,border ,protection and the public regarding ,united ,states ,government activities concerning evasion1 including-- 7,a7 receive and transmit to the appropriate ,u4,s4 ,customs and ,border ,protection office allegations from parties of evasion2 7,b7 upon request by the party or parties that submitted an allegation of evasion1 provide information to such party or parties on the status of ,u4,s4 ,customs and ,border ,protection's consideration of the allegation and decision to pursue or not pursue any investigations or other actions1 such as changes in policies1 procedures1 or resource allocation as a result of the allegation2 7,c7 as needed1 request from the party or parties that submitted an allegation of evasion any additional information that may be relevant for ,u4,s4 ,customs and ,border ,protection determining whether to initiate an investigation or take any other action regarding the allegation2 7,d7 notify on a timely basis the party or parties that submitted such an allegation of the results of any civil or criminal actions taken by ,u4,s4 ,customs and ,border ,protection or other ,federal agency regarding evasion as a direct or indirect result of the allegation2 7,e7 upon request1 provide technical assistance and advice to eligible small businesses to enable such businesses to prepare and submit allegations of evasion1 except that the ,director may deny assistance if the ,director concludes that the allegation1 if submitted1 would not lead to the initiation of an investigation or any other action to address the allegation2 7,f7 in cooperation with the public1 the ,advisory ,committee on ,commercial ,operations of the ,united ,states ,customs ,service1 the ,trade ,support ,network and any other relevant parties and organizations1 develop guidelines on the types and nature of information that may be provided in allegations of evasion2 and 7,g7 regularly consult with the public1 the ,advisory ,committee on ,commercial ,operations of the ,united ,states ,customs ,service1 the ,trade ,support ,network1 and any other relevant parties and organizations regarding the development and implementation of regulations1 interpretations1 and policies related to countering evasion4 7c7 ,preventing and countering evasion of the trade remedy laws ,in carrying out its duties with respect to preventing and countering evasion1 the ,national ,targeting and ,analysis ,group dedicated to preventing and countering evasion shall-- 7#a7 establish targeted risk assessment methodologies and standards-- 7,a7 for evaluating the risk that cargo destined for the ,united ,states may constitute evading covered merchandise2 and 7,b7 for issuing1 as appropriate1 ,trade ,alerts described in subsection 7d72 and 7#b7 to the extent practicable and otherwise authorized by law1 use information available from the ,automated ,commercial ,system1 the ,automated ,commercial ,environment computer system1 the ,automated ,targeting ,system1 the ,automated ,entry ,system1 the ,international ,trade ,data ,system1 and the ,treasury ,enforcement ,communications ,system1 and any successor systems1 to administer the methodologies and standards established under paragraph 7#a74 7d7 ,trade alerts ,based upon the application of the targeted risk assessment methodologies and standards established under subsection 7c71 the ,director of the ,trade ,remedy ,law ,enforcement ,division shall issue ,trade ,alerts or other such means of notification to directors of ,united ,states ports of entry directing further inspection1 or physical examination or testing1 of specific merchandise to ensure compliance with the trade remedy laws4 7e7 ,definitions ,in this section-- 7#a7 the term ,advisory ,committee on ,commercial ,operations of the ,united ,states ,customs ,service means the ,advisory ,committee established under section #iejc7;c7 of the ,omnibus ,budget ,reconciliation ,act of #aihg 7#ai ,u4,s4,c4 #bjga note72 and 7#b7 the term ,trade ,support ,network means the network of private sector entities that provide input on the design and development of modernization projects of ,u4,s4 ,customs and ,border ,protection4 7f7 ,use of trade data for commercial enforcement purposes ,section #cdc7;a77#c7 of the ,trade ,act of #bjjb 7#ai ,u4,s4,c4 #bjga note7 is amended-- 7#a7 by striking subparagraph 7,f72 and 7#b7 by redesignating subparagraphs 7,g7 through 7,l7 as subparagraphs 7,f7 through 7,k71 respectively4 #ajb4 ,collection of information on evasion of trade remedy laws 7a7 ,authority ,to collect information ,to determine whether covered merchandise is being entered into the customs territory of the ,united ,states through evasion1 the ,secretary1 acting through the ,commissioner-- 7#a7 shall exercise all existing authorities to collect information needed to make the determination2 and 7#b7 may collect such additional information as is necessary to make the determination through such methods as the ,commissioner considers appropriate1 including by issuing questionnaires with respect to the entry or entries at issue to-- 7,a7 a person who filed an allegation with respect to the covered merchandise2 7,b7 a person who is alleged to have entered the covered merchandise into the customs territory of the ,united ,states through evasion2 or 7,c7 any other person who is determined to have information relevant to the allegation of entry of covered merchandise into the customs territory of the ,united ,states through evasion4 7b7 ,adverse inference 7#a7 ,in general ,if the ,secretary finds that a person who filed an allegation1 a person alleged to have entered covered merchandise into the customs territory of the ,united ,states through evasion1 or a foreign producer or exporter of covered merchandise that is alleged to have entered into the customs territory of the ,united ,states through evasion1 has failed to cooperate by not acting to the best of the person's ability to comply with a request for information1 the ,secretary may1 in making a determination whether an entry or entries of covered merchandise may constitute merchandise that is entered into the customs territory of the ,united ,states through evasion1 use an inference that is adverse to the interests of that person in selecting from among the facts otherwise available to determine whether evasion has occurred4 7#b7 ,adverse inference described ,an adverse inference used under paragraph 7#a7 may include reliance on information derived from-- 7,a7 the allegation of evasion of the trade remedy laws1 if any1 submitted to ,u4,s4 ,customs and ,border ,protection2 7,b7 a determination by the ,commissioner in another investigation1 proceeding1 or other action regarding evasion of the unfair trade laws2 or 7,c7 any other available information4 #ajc4 ,access to information 7a7 ,in general ,section #ggg7;b77#a77;,a77ii7 of the ,trade ,act of #aicj 7#ai ,u4,s4,c4 #afgg;f7b77#a77;,a77ii77 is amended by inserting negligence1 gross negligence1 or after regarding4 7b7 ,additional information ,notwithstanding any other provision of law1 the ,secretary is authorized to provide to the ,secretary of ,commerce or the ,u4,s4 ,international ,trade ,commission any information that is necessary to enable the ,secretary of ,commerce or the ,u4,s4 ,international ,trade ,commission to assist the ,secretary to identify1 through risk assessment targeting or otherwise1 covered merchandise that is entered into the customs territory of the ,united ,states through evasion4 #ajd4 ,cooperation with foreign countries on preventing evasion of trade remedy laws 7a7 ,bilateral agreements 7#a7 ,in general ,the ,secretary shall seek to negotiate and enter into bilateral agreements with the customs authorities or other appropriate authorities of foreign countries for purposes of cooperation on preventing evasion of the trade remedy laws of the ,united ,states and the trade remedy laws of the other country4 7#b7 ,provisions and authorities ,the ,secretary shall seek to include in each such bilateral agreement the following provisions and authorities3 7,a7 ,on the request of the importing party1 the exporting party shall provide1 consistent with its laws1 regulations1 and procedures1 production1 trade1 and transit documents and other information necessary to determine whether an entry or entries exported from the exporting party are subject to the importing party's trade remedy laws4 7,b7 ,on the written request of the importing party1 the exporting party shall conduct a verification for purposes of enabling the importing party to make a determination described in subparagraph 7,a74 7,c7 ,the exporting party may allow the importing party to participate in a verification described in subparagraph 7,b71 including through a site visit4 7,d7 ,if the exporting party does not allow participation of the importing party in a verification described in subparagraph 7,b71 the importing party may take this fact into consideration in its trade enforcement and compliance assessment activities regarding the compliance of the exporting countries' exports with the importing countries' trade remedy laws4 7b7 ,consideration ,the ,commissioner is authorized to take into consideration whether a country is a signatory to a bilateral agreement described in subsection 7a7 and the extent to which the country is cooperating under the bilateral agreement for purposes of trade enforcement and compliance assessment activities of ,u4,s4 ,customs and ,border ,protection that concern evasion by such country's exports4 7c7 ,report ,not later than ,december #ca of each year beginning after the date of the enactment of this ,act1 the ,secretary shall submit to the appropriate congressional committees a report summarizing-- 7#a7 the status of any ongoing negotiations of bilateral agreements described in subsection 7a71 including the identities of the countries involved in such negotiations2 7#b7 the terms of any completed bilateral agreements described in subsection 7a72 and 7#c7 bilateral cooperation and other activities conducted pursuant to or enabled by any completed bilateral agreements described in subsection 7a74 #aje4 ,trade negotiating objectives ,the principal negotiating objectives of the ,united ,states shall include obtaining the objectives of the bilateral agreements described under section #ajd7;a7 for any trade agreements under negotiation as of the date of the enactment of this ,act or future trade agreement negotiations4 ,,ii ,other matters #bja4 ,allocation and training of personnel ,the ,commissioner shall1 to the maximum extent possible1 ensure that ,u4,s4 ,customs and ,border ,protection-- 7#a7 employs sufficient personnel who have expertise in1 and responsibility for1 preventing and investigating the entry of covered merchandise into the customs territory of the ,united ,states through evasion2 7#b7 on the basis of risk assessment metrics1 assigns sufficient personnel with primary responsibility for preventing the entry of covered merchandise into the customs territory of the ,united ,states through evasion to the ports of entry in the ,united ,states at which the ,commissioner determines potential evasion presents the most substantial threats to the revenue of the ,united ,states2 and 7#c7 provides adequate training to relevant personnel to increase expertise and effectiveness in the prevention and investigation of entries of covered merchandise into the customs territory of the ,united ,states through evasion4 #bjb4 ,annual report on prevention of evasion of antidumping and countervailing duty orders 7a7 ,in general ,not later than ,february #bh of each year1 beginning in #bjac1 the ,commissioner1 in consultation with the ,secretary of ,commerce and the ,assistant ,secretary for ,u4,s4 ,immigration and ,customs ,enforcement1 shall submit to the appropriate congressional committees a report on the efforts being taken to prevent and investigate evasion4 7b7 ,contents ,each report required under subsection 7a7 shall include-- 7#a7 for the calendar year preceding the submission of the report-- 7,a7 a summary of the efforts of ,u4,s4 ,customs and ,border ,protection to prevent and investigate evasion2 7,b7 the number of allegations of evasion received and the number of allegations of evasion resulting in investigations by ,u4,s4 ,customs and ,border ,protection or any other agency2 7,c7 a summary of the completed investigations of evasion1 including the number and nature of the investigations initiated1 conducted1 or completed1 as well as their resolution2 7,d7 with respect to investigations that lead to issuance of a penalty notice1 the penalty amounts2 7,e7 the amounts of antidumping and countervailing duties collected as a result of any investigations or other actions by ,u4,s4 ,customs and ,border ,protection or any other agency2 7,f7 a description of the allocation of personnel and other resources of ,u4,s4 ,customs and ,border ,protection and ,u4,s4 ,immigration and ,customs ,enforcement to prevent and investigation evasion1 including any assessments conducted regarding the allocation of such personnel and resources2 and 7,g7 a description of training conducted to increase expertise and effectiveness in the prevention and investigation of evasion2 and 7#b7 a description of ,u4,s4 ,customs and ,border ,protection processes and procedures to prevent and investigate evasion1 including-- 7,a7 the specific guidelines1 policies1 and practices used by ,u4,s4 ,customs and ,border ,protection to ensure that allegations of evasion are promptly evaluated and acted upon in a timely manner2 7,b7 an evaluation of the efficacy of such existing guidelines1 policies1 and practices2 7,c7 identification of any changes since the last report that have materially improved or reduced the effectiveness of ,u4,s4 ,customs and ,border ,protection to prevent and investigate evasion2 7,d7 a description of the development and implementation of policies for the application of single entry and continuous bonds for entries of covered merchandise to sufficiently protect the collection of antidumping and countervailing duties commensurate with the level of risk on noncollection2 7,e7 the processes and procedures for increased cooperation and information sharing with the ,department of ,commerce1 ,u4,s4 ,immigration and ,customs ,enforcement1 and any other relevant ,federal agencies to prevent and investigate evasion2 and 7,f7 identification of any recommended policy changes of other ,federal agencies or legislative changes to improve the effectiveness of ,u4,s4 ,customs and ,border ,protection to prevent and investigate evasion4 #bjc4 ,addressing circumvention by new shippers ,section #gea7;a77#b77;,b7 of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #afge7;a77#b77;,b77 is amended-- 7#a7 by striking clause 7iii72 7#b7 by redesignating clause 7iv7 as clause 7iii72 and 7#c7 inserting after clause 7iii71 as redesignated by paragraph 7#b7 of this section1 the following3 7iv7 ,any weighted average dumping margin or individual countervailing duty rate determined for an exporter or producer in a review conducted under clause 7i7 shall be based solely on the bona fide ,united ,states sales of an exporter or producer1 as the case may be1 made during the period covered by the review4 ,in determining whether the ,united ,states sales of an exporter or producer made during the period covered by the review were bona fide1 the administering authority shall consider1 depending on the circumstances surrounding such sales-- 7,i7 the prices of such sales2 7,,ii7 whether such sales were made in commercial quantities2 7,,iii7 the timing of such sales2 7,,iv7 the expenses arising from such sales2 7,v7 whether the subject merchandise involved in such sales were resold in the ,united ,states at a profit2 7,,vi7 whether such sales were made on an arms-length basis2 and 7,,vii7 any other factor the administering authority determines to be relevant as to whether such sales are1 or are not1 likely to be typical of those the exporter or producer will make after completion of the review4 4