,,ii #aaith ,,congress #ast ,session ,s4 #ahhf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #bb1 #bjbe,mr4 ,banks introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,trade ,act of #aigd to authorize the ,united ,states ,trade ,representative to impose remedial measures with respect to certain entities that evade or may attempt to evade duties imposed with respect to nonmarket economy countries1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,axing ,nonmarket ,tariff ,evasion ,act or the ,,ante ,act4 #b4 ,imposition by ,trade ,representative of remedial measures in case of evasion of duties by certain entities of nonmarket economy countries 7a7 ,in general ,title ,,iii of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdaa et seq47 is amended by adding at the end the following3 #caa4 ,remedial measures regarding evasion of duties by certain entities in nonmarket economy countries 7a7 ,inquiry ,the ,trade ,representative may initiate an inquiry into whether a covered entity is establishing1 planning to establish1 or has established an investment in a third country that would avoid duties imposed under section #cja with respect to a nonmarket economy country4 7b7 ,remedial measures 7#a7 ,in general ,if the ,trade ,representative makes an affirmative determination under subsection 7a7 with respect to a covered entity and the investment of that covered entity in a third country1 the ,trade ,representative1 subject to the specific direction1 if any1 of the ,president1 may impose a remedial measure with respect to goods produced in the third country by a covered entity1 which may include the imposition of a duty equal to not less than the value of the duty placed on the relevant product of the nonmarket economy country under section #cja4 7#b7 ,timing ,an action under paragraph 7#a7 may be taken with respect to a covered entity-- 7,a7 at any point during an investigation under section #cja if the third-country investment of the covered entity has begun production2 and 7,b7 prospectively1 if the covered entity has plans to establish production in the third country4 7c7 ,matters relating to inquiries 7#a7 ,in general ,an inquiry under subsection 7a7 may be self-initiated by the ,trade ,representative or may be requested by interested persons 7as defined in section #cja7;d77#i77 or ,congress4 7#b7 ,initiation 7,a7 ,in general ,if an inquiry is requested under paragraph 7#a7 and the ,trade ,representative determines there is a reasonable indication that a covered entity is establishing1 planning to establish1 or has already established an investment in a third country that would avoid duties imposed under section #cja with respect to a nonmarket economy country1 the ,trade ,representative may initiate an inquiry under subsection 7a74 7,b7 ,information from other agencies ,upon request of the ,trade ,representative1 the head of a ,federal agency shall submit to the ,trade ,representative any relevant information of the agency that is necessary for the ,trade ,representative to carry out an inquiry under subsection 7a74 7#c7 ,determination ,to initiate inquiry ,not later than #de days after receipt of a request under paragraph 7#a71 the ,trade ,representative shall determine whether an inquiry under subsection 7a7 is warranted4 7#d7 ,determination of evasion ,not later than #ahj days after a determination under paragraph 7#c7 that an inquiry under subsection 7a7 is warranted with respect to a covered entity1 the ,trade ,representative shall make an affirmative determination of duty evasion if it is found that the third-country investment-- 7,a7 is being established or acquired1 or has been established or acquired1 by the covered entity2 and 7,b7 is producing or planning to produce a good subject to a duty under section #cja4 7d7 ,additional measures 7#a7 ,in general ,based on the findings of an inquiry under subsection 7a7 with respect to a covered entity1 the ,trade ,representative may1 at the specific direction1 if any1 of the ,president1 unilaterally impose a measure-- 7,a7 with respect to the covered entity2 and 7,b7 with respect to goods produced in a third country pursuant to the investment of that covered entity in the third country4 7#b7 ,timing ,a measure may be imposed under paragraph 7#a7 with respect to a covered entity-- 7,a7 if the covered entity has begun production2 or 7,b7 prospectively1 if the covered entity has immediate plans to establish production in the third country4 7#c7 ,decision not to impose a measure ,if the ,trade ,representative does not impose a measure under paragraph 7#a7 with respect to a covered entity1 the ,trade ,representative shall submit to ,congress a justification as to why such a measure was not imposed1 which shall include a description of the social and economic impacts of not imposing the measure4 7#d7 ,duration of measure ,if a measure is imposed by the ,trade ,representative under paragraph 7#a7 with respect to a covered entity1 the measure shall last as long as the remedial action with respect to the relevant nonmarket economy country imposed under section #cja remains in effect1 or as long as the relevant nonmarket economy country has a controlling interest in the third-country investment of the covered entity1 whichever terminates sooner4 7e7 ,definitions ,in this section3 7#a7 ,control ,the term control has the meaning given that term in section #hjj4bjh of title #ca1 ,code of ,federal ,regulations 7as in effect on the date of the enactment of this section74 7#b7 ,covered entity ,the term covered entity-- 7,a7 means an entity owned1 controlled1 subject to the jurisdiction or direction of1 or operated by a nonmarket economy country2 and 7,b7 includes any entity for which1 on any date during the most recent #ab-month period1 not less than #be percent of the equity interests in that entity are held directly or indirectly by one or more entities organized under the laws of a nonmarket economy country1 including through-- 7i7 interests in co-investment vehicles1 joint ventures1 or similar arrangements2 or 7ii7 a derivative financial instrument or contractual arrangement between the entity and a nonmarket economy country1 including any such instrument or contract that seeks to replicate any financial return with respect to such entity or interest in such entity4 7#c7 ,nonmarket economy country ,the term nonmarket economy country means any country that is both-- 7,a7 determined to be a nonmarket economy country under section #gga7ah7 of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #afgg7ah772 and 7,b7 included on the priority watch list1 as defined in section #ahb7;g77#c7 7commonly known as the ,special #cja ,priority ,watch ,list74 7#d7 ,trade ,representative ,the term ,trade ,representative means the ,united ,states ,trade ,representative4 4 7b7 ,clerical amendment ,the table of contents for the ,trade ,act of #aigd is amended by inserting after the item relating to section #caj the following3 ,sec4 #caa4 ,remedial measures regarding evasion of duties by certain entities in nonmarket economy countries4 4