119-hr3575

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3575 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 3575

 To amend the Trade Act of 1974 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 countries, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 May 23, 2025

 Mr. Arrington (for himself, Mr. Moore of Utah, Ms. Van Duyne, and Mr. 
 Steube) introduced the following bill; which was referred to the 
 Committee on Ways and Means

_______________________________________________________________________

 A BILL

 To amend the Trade Act of 1974 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 countries, and for other purposes.

 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 ``Axing Nonmarket Tariff Evasion Act'' 
or the ``ANTE Act''.

SEC. 2. IMPOSITION BY TRADE REPRESENTATIVE OF REMEDIAL MEASURES IN CASE 
 OF EVASION OF DUTIES BY CERTAIN ENTITIES OF NONMARKET 
 ECONOMY COUNTRIES.

    (a) In General.--Title III of the Trade Act of 1974 (19 U.S.C. 2411 
et seq.) is amended by adding at the end the following:

``

SEC. 311. REMEDIAL MEASURES REGARDING EVASION OF DUTIES BY CERTAIN 
 ENTITIES OF NONMARKET ECONOMY COUNTRIES.

 ``

    (a) Inquiry.--The Trade Representative may initiate an inquiry 
into whether a covered entity is establishing, planning to establish, 
or has established an investment in a third country that would avoid 
duties imposed under 

section 301 with respect to a nonmarket economy 
country.
 ``

    (b) Remedial Measures.--
 ``

    (1) In general.--If the Trade Representative makes an 
 affirmative determination under subsection

    (a) with respect to 
 a covered entity and the investment of that covered entity in a 
 third country, the Trade Representative, subject to the 
 specific direction, if any, of the President, may impose a 
 remedial measure with respect to goods produced in the third 
 country by a covered entity, 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 301.
 ``

    (2) Timing.--An action under paragraph

    (1) may be taken 
 with respect to a covered entity--
 ``
        (A) at any point during an investigation under 
 

section 301 if the third-country investment of the 
 covered entity has begun production; and
 ``
        (B) prospectively, if the covered entity has 
 plans to establish production in the third country.
 ``
            (c) Matters Relating to Inquiries.--
 ``

    (1) In general.--An inquiry under subsection

    (a) may be 
 self-initiated by the Trade Representative or may be requested 
 by interested persons (as defined in 

section 301
            (d) (9) ) or 
 Congress.
 ``

    (2) Initiation.--
 ``
        (A) In general.--If an inquiry is requested under 
 paragraph

    (1) and the Trade Representative determines 
 there is a reasonable indication that a covered entity 
 is establishing, planning to establish, or has already 
 established an investment in a third country that would 
 avoid duties imposed under 

section 301 with respect to 
 a nonmarket economy country, the Trade Representative 
 may initiate an inquiry under subsection

    (a) .
 ``
        (B) Information from other agencies.--Upon 
 request of the Trade Representative, 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

    (a) .
 ``

    (3) Determination to initiate inquiry.--Not later than 45 
 days after receipt of a request under paragraph

    (1) , the Trade 
 Representative shall determine whether an inquiry under 
 subsection

    (a) is warranted.
 ``

    (4) Determination of evasion.--Not later than 180 days 
 after a determination under paragraph

    (3) that an inquiry under 
 subsection

    (a) is warranted with respect to a covered entity, 
 the Trade Representative shall make an affirmative 
 determination of duty evasion if it is found that the third-
 country investment--
 ``
        (A) is being established or acquired, or has been 
 established or acquired, by the covered entity; and
 ``
        (B) is producing or planning to produce a good 
 subject to a duty under 

section 301.
 ``
            (d) Additional Measures.--
 ``

    (1) In general.--Based on the findings of an inquiry 
 under subsection

    (a) with respect to a covered entity, the 
 Trade Representative may, at the specific direction, if any, of 
 the President, unilaterally impose a measure--
 ``
        (A) with respect to the covered entity; and
 ``
        (B) with respect to goods produced in a third 
 country pursuant to the investment of that covered 
 entity in the third country.
 ``

    (2) Timing.--A measure may be imposed under paragraph

    (1) with respect to a covered entity--
 ``
        (A) if the covered entity has begun production; 
 or
 ``
        (B) prospectively, if the covered entity has 
 immediate plans to establish production in the third 
 country.
 ``

    (3) Decision not to impose a measure.--If the Trade 
 Representative does not impose a measure under paragraph

    (1) with respect to a covered entity, the Trade Representative 
 shall submit to Congress a justification as to why such a 
 measure was not imposed, which shall include a description of 
 the social and economic impacts of not imposing the measure.
 ``

    (4) Duration of measure.--If a measure is imposed by the 
 Trade Representative under paragraph

    (1) with respect to a 
 covered entity, the measure shall last as long as the remedial 
 action with respect to the relevant nonmarket economy country 
 imposed under 

section 301 remains in effect, or as long as the 
 relevant nonmarket economy country has a controlling interest 
 in the third-country investment of the covered entity, 
 whichever terminates sooner.
 ``

    (e) 

=== Definitions. ===
-In this section:
 ``

    (1) Control.--The term `control' has the meaning given 
 that term in 

section 800.208 of title 31, Code of Federal 
 Regulations (as in effect on the date of the enactment of this 
 section).
 ``

    (2) Covered entity.--The term `covered entity'--
 ``
        (A) means an entity owned, controlled, subject to 
 the jurisdiction or direction of, or operated by a 
 nonmarket economy country; and
 ``
        (B) includes any entity for which, on any date 
 during the most recent 12-month period, not less than 
 25 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 
 country, including through--
 ``
            (i) interests in co-investment vehicles, 
 joint ventures, or similar arrangements; or
 ``
            (ii) a derivative financial instrument or 
 contractual arrangement between the entity and 
 a nonmarket economy country, including any such 
 instrument or contract that seeks to replicate 
 any financial return with respect to such 
 entity or interest in such entity.
 ``

    (3) Nonmarket economy country.--The term `nonmarket 
 economy country' means any country that is both--
 ``
        (A) determined to be a nonmarket economy country 
 under 

section 771

    (18) of the Tariff Act of 1930 (19 
 U.S.C. 1677

    (18) ); and
 ``
        (B) included on the priority watch list, as 
 defined in 

section 182

    (g)

    (3) (commonly known as the 
 `Special 301 Priority Watch List').
 ``

    (4) Trade representative.--The term `Trade 
 Representative' means the United States Trade 
 Representative.''.

    (b) Clerical Amendment.--The table of contents for the Trade Act of 
1974 is amended by inserting after the item relating to 

section 310 the 
following:

``

Sec. 311. Remedial measures regarding evasion of duties by certain 
 entities in nonmarket economy countries.''.
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