Page:United States Statutes at Large Volume 98 Part 3.djvu/663

 PUBLIC LAW 98-573—OCT. 30, 1984

98 STAT. 3035

SEC. 613. UPSTREAM SUBSIDIES.

(a) Subtitle D of title VII is amended by adding after section 771 the following new section: "SEC. 771A. UPSTREAM SUBSIDIES.

"(a) DEFINITION.—The term 'upstream subsidy' means any subsidy described in section 771(5)(B)(i), (ii), or (iii) by the government of a country that— (1) is paid or bestowed by that government with respect to a product (hereafter referred to as an 'input product') that is used in the manufacture or production in that country of merchandise which is the subject of a countervailing duty proceeding; "(2) in the judgment of the administering authority bestows a competitive benefit on the merchandise; and "(3) has a significant effect on the cost of manufacturing or producing the merchandise. In applying this subsection, an association of two or more foreign countries, political subdivisions, dependent territories, or possessions of foreign countries organized into a customs union outside the United States shall be treated as being one country if the subsidy is provided by the customs union.

19 USC 1677-1.

19 USC 1677.

"(b) DETERMINATION OF COMPETITIVE BENEFIT.—

"(1) IN GENERAL.—Except as provided in paragraph (2), the administering authority shall decide that a competitive benefit has been bestowed when the price for the input product referred to in subsection (a)(1) for such use is lower than the price that the manufacturer or producer of merchandise which is the subject of a countervailing duty proceeding would otherwise pay for the product in obtaining it from another seller in an armslength transaction. "(2) ADJUSTMENTS.—If the administering authority has determined in a previous proceeding that a subsidy is paid or bestowed on the input product that is used for comparison under paragraph (1), the administering authority may (A) where appropriate, adjust the price that the manufacturer or producer of merchandise which is the subject of such proceeding would otherwise pay for the product to reflect the effects of the subsidy, or (B) select in lieu of that price a price from another source. "(c) INCLUSION OF AMOUNT OF SUBSIDY.—If the administering authority decides, during the course of a countervailing duty proceeding that an upstream subsidy is being or has been paid or bestowed regarding the merchandise under investigation, the administering authority shall include in the amount of any countervailing duty imposed on the merchandise an amount equal to the amount of the competitive benefit referred to in subparagraph (1)(B), except that in no event shall the amount be greater than the amount of subsidization determined with respect to the upstream product.". (b) Section 701 of the Tariff Act of 1930 (19 U.S.C. 1671) is further amended by adding at the end thereof the following new subsection: "(g) Whenever the administering authority has reasonable grounds to believe or suspect that an upstream subsidy, as defined in section 771A(a)(l), is being paid or bestowed, the administering Supra. authority shall investigate whether an upstream subsidy has in fact been paid or bestowed, and if so, shall include the amount of the upstream subsidy as provided in section 771A(a)(3).",

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