This bill, known as the ANTE Act, amends the Trade Act of 1974 to authorize the United States Trade Representative (USTR) to address duty evasion by entities from nonmarket economy countries. It specifically targets situations where these entities establish or plan investments in third countries to circumvent duties imposed under Section 301. The USTR can initiate an inquiry into such activities, either on its own initiative or upon request from interested parties or Congress, and must determine within 45 days if an inquiry is warranted. If the USTR makes an affirmative determination of duty evasion, it may impose remedial measures on goods produced in the third country by the covered entity. These measures can include a duty at least equal to the original duty placed on the product from the nonmarket economy country. Such actions can be taken once production has begun or prospectively if there are immediate plans for production. A covered entity is defined as one owned, controlled, or operated by a nonmarket economy country, or where at least 25 percent of equity interests are held by such a country. A nonmarket economy country is one determined as such under the Tariff Act of 1930 and included on the "Special 301 Priority Watch List." Measures imposed will last as long as the original remedial action against the nonmarket economy country or as long as that country has a controlling interest in the third-country investment. The USTR must also justify to Congress any decision not to impose a measure.
This bill, known as the ANTE Act, amends the Trade Act of 1974 to authorize the United States Trade Representative (USTR) to address duty evasion by entities from nonmarket economy countries. It specifically targets situations where these entities establish or plan investments in third countries to circumvent duties imposed under Section 301. The USTR can initiate an inquiry into such activities, either on its own initiative or upon request from interested parties or Congress, and must determine within 45 days if an inquiry is warranted. If the USTR makes an affirmative determination of duty evasion, it may impose remedial measures on goods produced in the third country by the covered entity. These measures can include a duty at least equal to the original duty placed on the product from the nonmarket economy country. Such actions can be taken once production has begun or prospectively if there are immediate plans for production. A covered entity is defined as one owned, controlled, or operated by a nonmarket economy country, or where at least 25 percent of equity interests are held by such a country. A nonmarket economy country is one determined as such under the Tariff Act of 1930 and included on the "Special 301 Priority Watch List." Measures imposed will last as long as the original remedial action against the nonmarket economy country or as long as that country has a controlling interest in the third-country investment. The USTR must also justify to Congress any decision not to impose a measure.