119-s172

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 172 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 172

To clarify the country of origin of certain articles imported into the 
 United States for purposes of certain trade enforcement actions.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 January 21, 2025

 Mr. Scott of Florida introduced the following bill; which was read 
 twice and referred to the Committee on Finance

_______________________________________________________________________

 A BILL

To clarify the country of origin of certain articles imported into the 
 United States for purposes of certain trade enforcement actions.

 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 ``Stopping Adversarial Tariff Evasion 
Act''.

SEC. 2. CLARIFICATION OF COUNTRY OF ORIGIN CRITERIA FOR ENFORCEMENT 
 ACTION UNDER TRADE AGREEMENTS OR IN RESPONSE TO CERTAIN 
 FOREIGN TRADE PRACTICES.

 

Section 301
            (d) of the Trade Act of 1974 (19 U.S.C. 2411
            (d) ) is 
amended by adding at the end the following:
 ``

    (10)
        (A) Any action taken by the Trade Representative 
 under this section, with respect to a foreign adversary 
 country, shall apply to any article that is produced, 
 manufactured, or that underwent final assembly by a foreign 
 adversary party or an entity owned, controlled, directed, or 
 operated by a foreign adversary party, as if such article 
 originated in the foreign adversary country.
 ``
        (B) In this paragraph:
 ``
            (i) 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 the Stopping Adversarial Tariff Evasion Act).
 ``
            (ii) The term `entity owned, controlled, 
 directed, or operated by a foreign adversary party' 
 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 such entity are held 
 directly or indirectly by 1 or more foreign adversary 
 parties 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 foreign adversary party, including any such 
 instrument or contract that seeks to replicate 
 any financial return with respect to such 
 entity or interest in such entity.
 ``
            (iii) The term `foreign adversary country' means 
 any of the following:
 ``
            (I) The People's Republic of China.
 ``
            (II) The Russian Federation.
 ``
            (III) The Islamic Republic of Iran.
 ``
            (IV) The Democratic People's Republic of 
 Korea.
 ``
            (V) The Republic of Cuba.
 ``
            (VI) The Bolivarian Republic of Venezuela 
 during any period of time during which Nicholas 
 Maduro is President of the Republic.
 ``
            (iv) The term `foreign adversary party' means any 
 of the following:
 ``
            (I) The government of a foreign adversary 
 country, including any agency, government 
 instrumentality, official, or agent of such a 
 government.
 ``
            (II) Any entity organized under the laws 
 of a foreign adversary country (or any 
 political subdivision thereof).
 ``
            (III) Any entity the headquarters of 
 which is located within a foreign adversary 
 country.
 ``
            (IV) Any entity substantively involved in 
 the industrial policies or military-civil 
 fusion strategy of the People's Republic of 
 China, including by accepting funding from, 
 performing a service for, or receiving a 
 subsidy from the People's Republic of China 
 related to such policies or strategy.''.

SEC. 3. CLARIFICATION OF COUNTRY OF ORIGIN CRITERIA FOR ENFORCEMENT 
 ACTION BY PRESIDENT AFTER DETERMINATION OF IMPORT INJURY.

 

Section 203 of the Trade Act of 1974 (19 U.S.C. 2253) is amended by 
adding at the end the following:
 ``

    (h) Application of Action to Foreign Adversary Parties.--

    (1) Any 
action taken under this section shall apply to any article that is 
produced, manufactured, or that underwent final assembly by a foreign 
adversary party or an entity owned, controlled, directed, or operated 
by a foreign adversary party, as if such article originated in a 
foreign adversary country.
 ``

    (2) In this subsection:
 ``
        (A) 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 the Stopping Adversarial 
 Tariff Evasion Act).
 ``
        (B) The term `entity owned, controlled, directed, or 
 operated by a foreign adversary party' 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 such entity are 
 held directly or indirectly by 1 or more foreign adversary 
 parties 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 
 foreign adversary party, including any such instrument 
 or contract that seeks to replicate any financial 
 return with respect to such entity or interest in such 
 entity.
 ``
            (C) The term `foreign adversary country' means any of the 
 following:
 ``
            (i) The People's Republic of China.
 ``
            (ii) The Russian Federation.
 ``
            (iii) The Islamic Republic of Iran.
 ``
            (iv) The Democratic People's Republic of Korea.
 ``
            (v) The Republic of Cuba.
 ``
            (vi) The Bolivarian Republic of Venezuela during 
 any period of time during which Nicholas Maduro is 
 President of the Republic.
 ``
            (D) The term `foreign adversary party' means any of the 
 following:
 ``
            (i) The government of a foreign adversary 
 country, including any agency, government 
 instrumentality, official, or agent of such a 
 government.
 ``
            (ii) Any entity organized under the laws of a 
 foreign adversary country (or any political subdivision 
 thereof).
 ``
            (iii) Any entity the headquarters of which is 
 located within a foreign adversary country.
 ``
            (iv) Any entity substantively involved in the 
 industrial policies or military-civil fusion strategy 
 of the People's Republic of China, including by 
 accepting funding from, performing a service for, or 
 receiving a subsidy from the People's Republic of China 
 related to such policies or strategy.''.

SEC. 4. CLARIFICATION OF COUNTRY OF ORIGIN CRITERIA FOR ENFORCEMENT 
 ACTION TO SAFEGUARD NATIONAL SECURITY.

 

Section 232
            (c) of the Trade Expansion Act of 1962 (19 U.S.C. 
1862
            (c) ) is amended by adding at the end the following:
 ``

    (4)
        (A) Any action taken by the President under paragraph

    (1) shall apply to any article that is produced, manufactured, 
 or that underwent final assembly by a foreign adversary party 
 or an entity owned, controlled, directed, or operated by a 
 foreign adversary party, as if such article originated in a 
 foreign adversary country.
 ``
        (B) For the purposes of this paragraph the following 
 definitions apply:
 ``
            (i) 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 the Stopping Adversarial Tariff Evasion Act).
 ``
            (ii) The term `entity owned, controlled, 
 directed, or operated by a foreign adversary party' 
 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 such entity are held 
 directly or indirectly by 1 or more foreign adversary 
 parties 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 foreign adversary party, including any such 
 instrument or contract that seeks to replicate 
 any financial return with respect to such 
 entity or interest in such entity.
 ``
            (iii) The term `foreign adversary country' means 
 any of the following:
 ``
            (I) The People's Republic of China.
 ``
            (II) The Russian Federation.
 ``
            (III) The Islamic Republic of Iran.
 ``
            (IV) The Democratic People's Republic of 
 Korea.
 ``
            (V) The Republic of Cuba.
 ``
            (VI) The Bolivarian Republic of Venezuela 
 during any period of time during which Nicholas 
 Maduro is President of the Republic.
 ``
            (iv) The term `foreign adversary party' means any 
 of the following:
 ``
            (I) The government of a foreign adversary 
 country, including any agency, government 
 instrumentality, official, or agent of such a 
 government.
 ``
            (II) Any entity organized under the laws 
 of a foreign adversary country (or any 
 political subdivision thereof).
 ``
            (III) Any entity the headquarters of 
 which is located within a foreign adversary 
 country.
 ``
            (IV) Any entity substantively involved in 
 the industrial policies or military-civil 
 fusion strategy of the People's Republic of 
 China, including by accepting funding from, 
 performing a service for, or receiving a 
 subsidy from the People's Republic of China 
 related to such policies or strategy.''.
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