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Referenced Laws
19 U.S.C. 2431 et seq.
19 U.S.C. 2432
Public Law 106–286
19 U.S.C. 1321
19 U.S.C. 2411 et seq.
19 U.S.C. 1401 et seq.
Section 1
1. Short title This Act may be cited as the Restoring Trade Fairness Act.
Section 2
2. Findings; sense of Congress Congress makes the following findings: The United States grants normal trade relations status to every country in the world except for Belarus, Cuba, North Korea, and the Russian Federation. Merchandise originating from a country that is a beneficiary of normal trade relations status is subject to duties at the rates set forth in column 1 of the Harmonized Tariff Schedule of the United States (in this Act referred to as the HTS). Merchandise originating from a country that is not a beneficiary of normal trade relations status is subject to duties at the rates set forth in column 2 of the HTS. The United States Schedule of Concessions on goods to the World Trade Organization lists rates of duty the United States is expected to extend to all other members of the World Trade Organization. As of the date of the enactment of this Act, the rates of duty under the United States Schedule of Concessions on goods, on a simple average basis, are the lowest among all members of the World Trade Organization, at 3.4 percent. The duty concessions in the United States Schedule of Concessions align with the duties set forth in column 1 of the HTS. The People's Republic of China was granted normal trade relations status in February 1980, pursuant to title IV of the Trade Act of 1974 (19 U.S.C. 2431 et seq.), making merchandise from the People's Republic of China eligible for the duties set forth in column 1 of the HTS. From 1980 until 2001, the People's Republic of China’s normal trade relations status was subject to compliance with freedom-of-emigration requirements under section 402 of the Trade Act of 1974 (19 U.S.C. 2432) (commonly referred to as the Jackson-Vanik amendment). In 2001, Public Law 106–286 (114 Stat. 880) was passed to make permanent the People's Republic of China’s normal trade relations status. Entries under section 321 of the Tariff Act of 1930 (19 U.S.C. 1321) became an avenue of commerce by way of regulation, when in 1994 the Department of the Treasury and the Customs Service issued an interim rule expanding the class of persons deemed eligible to make informal entries under that section, and exempted shipments by those persons from the requirement to file an entry summary. In both litigation challenging the interim rule and comments on the final rule published the following year, customs brokers warned that the Customs Service was abrogating its responsibility to enforce laws, but their warnings were not heeded. In 2018, following an investigation under title III of the Trade Act of 1974 (19 U.S.C. 2411 et seq.) into the theft of intellectual property by the People's Republic of China, additional duties affecting approximately one-third of exports from the People's Republic of China to the United States were imposed. On January 15, 2020, the United States and the People's Republic of China signed the Economic and Trade Agreement Between the Government of the United States of America and the Government of the People’s Republic Of China, which required structural reforms and other changes to the economic and trade regime of the People's Republic of China. The People's Republic of China, however, did not comply with the agreement. In December 2022, the United States-China Economic and Security Review Commission’s 2022 Annual Report asserted as follows: After many years of attempting to engage China and persuade it to abandon its distortive trade practices, it is clear this approach has not been successful. The United States has an opportunity to develop a new strategy based on building resilience against China’s state capitalism and blunting its harmful effects rather than seeking to change it. With the WTO unable to introduce meaningful new rules and procedures, the United States can pursue approaches that advance its own national interests as well as cooperate with like-minded partners. The Commission’s 2022 Annual Report recommended that the Administration prepare a report to assess China’s compliance with the terms and conditions of the 1999 Agreement on Market Access between the People’s Republic of China and the United States of America. The Commission recommended that [i]f the report concludes that China has failed to comply with the provisions agreed to for its accession to the WTO, Congress should consider legislation to immediately suspend China’s Permanent Normal Trade Relations (PNTR) treatment. In February 2023, the Office of the United States Trade Representative released a report entitled 2022 Report to Congress on China’s WTO Compliance. In releasing that report, United States Trade Representative Katherine Tai noted, More than 20 years after it acceded to the WTO, China still embraces a state-led economic and trade approach that runs counter to the open, market-oriented principles endorsed by all members of the organization. China’s approach makes it an outlier and continues to cause serious harm to workers and businesses in the United States and around the world. Since the entry of the People's Republic of China into the WTO, the United States has lost tens of thousands of factories, millions of manufacturing jobs, and trillions of dollars of intellectual property. The United States now suffers chronic annual trade deficits that exceed $1,000,000,000,000, primarily driven by the predatory trade practices of the People’s Republic of China. There is no mechanism in the Agreement establishing the World Trade Organization, nor any of the annexed agreements, to suspend or expel a member government that has flouted the principles and norms underpinning the Agreement. The accession of advanced economies governed by autocratic, anti-American governments to the World Trade Organization has enriched those governments while destabilizing international relations. The ability of the United States to act in concert with allies and partners to strengthen resilient supply chains free of reliance on or interference from adversarial, autocratic governments is hampered by the United States Schedule of Concessions on goods as currently expressed. It is the sense of Congress that— continued treatment of the People's Republic of China as a beneficiary of normal trade relations status poses an unacceptable threat to national security and undermines efforts to promote resilient supply chains and economic integration with allies of the United States; and the United States Schedule of Concessions on goods to the World Trade Organization should be modified to accommodate the duty rates set forth in column 2 of the HTS, so that the United States may deny normal trade relations status to another member of the World Trade Organization as warranted without breaching the duty concessions enumerated in the United States Schedule of Concessions.
Section 3
3. Suspension of normal trade relations with the People’s Republic of China Notwithstanding the provisions of title I of Public Law 106–286 (114 Stat. 880) or any other provision of law, beginning on the day after the date of the enactment of this Act, normal trade relations treatment shall not apply pursuant to section 101(a) of that Act to the products of the People’s Republic of China.
Section 4
4. Modifications to rates of duty to address trade with the People's Republic of China The President, by proclamation, shall revise the Harmonized Tariff Schedule of the United States (in this Act referred to as the HTS) to include rates of duty applicable only with respect to articles of the People’s Republic of China. The rates of duty proclaimed under paragraph (1) shall be, except as provided by subsection (h), the rates of duty set forth in the column 2 rate of duty column of the HTS on the day before the date of the enactment of this Act, modified as required by subsection (b) and, if applicable, adjusted for inflation under subsection (c). A rate of duty set forth in the column 2 rate of duty column of the HTS that is expressed as a percentage, or that is free, shall, except as provided by subparagraph (B) or (C), continue to apply to articles of the People's Republic of China. A rate of duty described in subparagraph (A) that is less than 35 percent ad valorem as of the day before the date of the enactment of this Act shall, except as provided by subparagraph (C), be increased to 35 percent ad valorem. In the case of an article specified in section 10, a rate of duty described in subparagraph (A) that is less than 100 percent ad valorem as of the day before the date of the enactment of this Act shall be increased to 100 percent ad valorem. A rate of duty set forth in the column 2 rate of duty column of the HTS that is expressed as a specific or compound rate of duty shall, except as provided by subparagraphs (B) and (C), continue to apply to articles of the People's Republic of China, subject to adjustment for inflation under subsection (c). A rate of duty described in subparagraph (A) that is less than the equivalent of 35 percent ad valorem, after adjustment for inflation under subsection (c), shall be increased to be equivalent to 35 percent ad valorem. In the case of an article specified in section 10, a rate of duty described in subparagraph (A) that is less than the equivalent of 100 percent ad valorem, after adjustment for inflation under subsection (c), shall be increased to be equivalent to 100 percent ad valorem. As soon as practicable after the date of the enactment of this Act, and on November 1 of each year thereafter, the President shall proclaim modifications to adjust the specific and compound rates of duty described in subsection (b)(2), as modified under that subsection, to reflect the increase in the average of the Consumer Price Index for the most recent full calendar year for which data are available compared to the Consumer Price Index for calendar year 1930. The first adjustment required by paragraph (1) shall apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after January 1, 2024. Not later than 180 days after the date of the enactment of this Act, the Commissioner of U.S. Customs and Border Protection shall issue rules for the retroactive collection of duties under clause (i). Each adjustment required by paragraph (1) after the first such adjustment shall apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after January 1 of the year beginning after the issuance of the proclamation. For purposes of the adjustment required by paragraph (1), the President shall use the rate of duty applicable under the column 2 general rate of duty column of the HTS, as modified under subsection (b), as the base rate. In adjusting under paragraph (1) the specific and compound rates of duty described in subsection (b)(2), as modified under that subsection, the President shall ignore any duty rate increase of less than 1 percent compared to the previous year. For purposes of this subsection, the term Consumer Price Index means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. The President shall, by proclamation, phase-in the application of the duty increases required by subsection (a), as modified under subsection (b) and, if applicable, adjusted for inflation under subsection (c), as follows: On and after the date that is 180 days after the date of the enactment of this Act, 10 percent of the total duty increase with respect to an article shall apply. On and after the date that is 2 years after such date of enactment, 25 percent of the total duty increase with respect to an article shall apply. On and after the date that is 4 years after such date of enactment, 50 percent of the total duty increase with respect to an article shall apply. On and after the date that is 5 years after such date of enactment, 100 percent of the total duty increase with respect to an article shall apply. Not later than July 1 of each year, the United States International Trade Commission (in this Act referred to as the Commission) shall submit to the President the following information with respect to articles that are subject to a specific or compound rate of duty under the column 2 rate of duty column of the HTS and for which sufficient data are available to calculate the ad valorem equivalent of those rates of duty: An identification of which such articles (other than articles specified in section 10) have an ad valorem equivalent rate of duty of less than 35 percent after adjustment for inflation under subsection (c) and, for each such article, a calculation of the specific or compound rate of duty that would increase the rate of duty to be equivalent to 35 percent ad valorem. An identification of which articles specified in section 10 have an ad valorem equivalent rate of duty of less than 100 percent after adjustment for inflation under subsection (c) and, for each such article, a calculation of the specific or compound rate of duty that would increase the rate of duty to be equivalent to 100 percent ad valorem. Notwithstanding any other provision of law, the President shall, by proclamation, establish a tariff-rate quota that shall— apply to each article imported only from the People's Republic of China; and be set for each calendar year at an amount that is equal to the amount, if any, by which consumption of the article in the United States in the most recent calendar year for which data are available exceeds production of the article in the United States during that calendar year. For purposes of subparagraph (A)(i)(I), the President shall determine that an article is imported only from the People's Republic of China if official trade statistics of the Department of Commerce for the most recent full calendar year for which data are available for the applicable subheading of any of chapters 1 through 97 of the HTS, as reported on entry summary forms, show that the article is imported only from the People's Republic of China and from no other country. Notwithstanding any other provision of this section, an article described in subparagraph (A)(i)(I) that is entered before the applicable tariff-rate quota is reached for the calendar year in which the article is entered shall— during the 3-year period beginning on the date of the enactment of this Act, be subject to the rate of duty applicable to the article on the day before such date of enactment; and after the period described in clause (i), be subject to the rate of duty applicable under subsection (a), as modified under subsection (b) and as phased-in under paragraph (2). Notwithstanding any other provision of this section, an article described in subparagraph (A)(i)(I) that is entered after the tariff-rate quota is reached for the calendar year in which the article is entered shall be subject to a rate of duty of 100 percent ad valorem. Beginning on the date that is 3 years after the date of the enactment of this Act, the President shall, by proclamation, phase-in the application of the duty increases required by paragraph (1)(B) with respect to each article described in paragraph (1)(A)(i)(I) and entered before the applicable tariff-rate quota under paragraph (1) is reached for the calendar year in which the article is entered, as follows: On and after the date that is 3 years after the date of the enactment of this Act, 10 percent of the total duty increase required by paragraph (1)(B) with respect to the article shall apply. On and after the date that is 5 years after such date of enactment, 25 percent of the total duty increase required by paragraph (1)(B) with respect to the article shall apply. On and after the date that is 6 years after such date of enactment, 50 percent of the total duty increase required by paragraph (1)(B) with respect to the article shall apply. On and after the date that is 7 years after such date of enactment, 100 percent of the total duty increase required by paragraph (1)(B) with respect to the article shall apply. Not later than July 1 of each year, the Commission shall submit to the President an estimate of the production and consumption in the United States of articles described in paragraph (1)(A)(i)(I) for which sufficient data are available to make such an estimate. The President, by proclamation, may increase the rates of duty applicable to articles of the People’s Republic of China to rates that are higher than the rates of duty described in subsection (a) and modified as required by subsection (b) if the President determines doing so is necessary to counteract the dependence of the United States on imports from the People's Republic of China or to penalize the People's Republic of China for unfair trading practices. If the President proclaims an increase in a rate of duty under paragraph (1), the President shall provide for the increase to be phased-in over a period of 5 years on a schedule equivalent to the schedule set forth in subsection (d). The President may establish quotas for the progressive elimination of reliance on any articles imported from the People’s Republic of China. The President may prohibit the importation of any article from the People’s Republic of China if the President determines that— the importation of the article poses a threat to the national security of the United States; or the article is produced in a manner that— constitutes an unfair trade practice; or violates human rights. The President shall prescribe such regulations as may be necessary for the enforcement of this paragraph. In addition to the other authorities provided by this section, the President may proclaim such modifications to the HTS as the President determines appropriate to achieve the objectives of this Act, including with respect to the manner of reflecting any modifications in the HTS.
Section 5
5. Valuation of merchandise imported from the People's Republic of China Subpart A of part I of title IV of the Tariff Act of 1930 (19 U.S.C. 1401 et seq.) is amended by adding at the end the following: Notwithstanding any other provision of law, merchandise imported from the People's Republic of China shall be appraised on the basis of the United States value of the merchandise. An importer of merchandise described in subsection (a) shall submit to U.S. Customs and Border Protection, upon entry of the merchandise, a statement of the United States value of the merchandise. U.S. Customs and Border Protection shall— verify the information with respect to the United States value of merchandise submitted by an importer under paragraph (1); and submit to the United States International Trade Commission— a determination of whether or not the value submitted by the importer is accurate; and if that value is not accurate, a revised value for the merchandise. In this section, the term United States value, with respect to imported merchandise, means the price at which the imported merchandise or similar imported merchandise is freely offered for sale, packed ready for delivery, in the principal market of the United States to all purchasers, at the time of importation of the imported merchandise. 403.Valuation of merchandise imported from the People's Republic of China(a)In generalNotwithstanding any other provision of law, merchandise imported from the People's Republic of China shall be appraised on the basis of the United States value of the merchandise.(b)Verification of United States value(1)Submission by importersAn importer of merchandise described in subsection (a) shall submit to U.S. Customs and Border Protection, upon entry of the merchandise, a statement of the United States value of the merchandise.(2)Verification by U.S. Customs and Border ProtectionU.S. Customs and Border Protection shall—(A)verify the information with respect to the United States value of merchandise submitted by an importer under paragraph (1); and (B)submit to the United States International Trade Commission—(i)a determination of whether or not the value submitted by the importer is accurate; and(ii)if that value is not accurate, a revised value for the merchandise.(c)United States value definedIn this section, the term United States value, with respect to imported merchandise, means the price at which the imported merchandise or similar imported merchandise is freely offered for sale, packed ready for delivery, in the principal market of the United States to all purchasers, at the time of importation of the imported merchandise..
Section 6
403. Valuation of merchandise imported from the People's Republic of China Notwithstanding any other provision of law, merchandise imported from the People's Republic of China shall be appraised on the basis of the United States value of the merchandise. An importer of merchandise described in subsection (a) shall submit to U.S. Customs and Border Protection, upon entry of the merchandise, a statement of the United States value of the merchandise. U.S. Customs and Border Protection shall— verify the information with respect to the United States value of merchandise submitted by an importer under paragraph (1); and submit to the United States International Trade Commission— a determination of whether or not the value submitted by the importer is accurate; and if that value is not accurate, a revised value for the merchandise. In this section, the term United States value, with respect to imported merchandise, means the price at which the imported merchandise or similar imported merchandise is freely offered for sale, packed ready for delivery, in the principal market of the United States to all purchasers, at the time of importation of the imported merchandise.
Section 7
6. Cooperation and accountability at World Trade Organization The United States Trade Representative shall direct the United States Ambassador to the World Trade Organization to modify the United States Schedule of Concessions on goods to accommodate modifications to the rates of duty for articles imported from other members of the WTO so that the United States may deny normal trade relations status to such a member as the United States determines warranted without breaching the duty concessions enumerated in the United States Schedule of Concessions.
Section 8
7. Exception to duty exemption for de minimis entries and modifications to entry regulations Section 321 of the Tariff Act of 1930 (19 U.S.C. 1321) is amended— in subsection (a)— in the matter preceding paragraph (1), by striking (a) The Secretary and inserting (a) In general.—The Secretary; in paragraph (2)(C), by striking $800 and inserting except as provided in subsection (b)(1), $800; and in the matter following such paragraph (2)(C), as so amended, by striking subdivision (2) each place it appears and inserting paragraph; and by striking (b) The Secretary and inserting the following: An article that originates in a covered nation (as defined in section 4872 of title 10, United States Code) may not be admitted free of duty or tax under the authority provided by subsection (a)(2)(C). The Secretary The amendments made by subsection (a)— take effect on the date of the enactment of this Act; and apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after the date that is 15 days after such date of enactment. (b)Exceptions(1)Articles of covered nationsAn article that originates in a covered nation (as defined in section 4872 of title 10, United States Code) may not be admitted free of duty or tax under the authority provided by subsection (a)(2)(C).(2)Other exceptionsThe Secretary.
Section 9
8. Allocation of duty revenue on imports from the People's Republic of China as compensation for retaliation by the People’s Republic of China There is established in the Treasury of the United States a trust fund, consisting of— amounts transferred to the trust fund under subsection (b); and any amounts that may be credited to the trust fund under subsection (c). The Secretary of the Treasury shall transfer to the trust fund established under subsection (a), from the general fund of the Treasury, for fiscal year 2024 and each fiscal year thereafter, an amount equivalent to the amount received into the general fund during that fiscal year and attributable to duties collected on articles imported from the People’s Republic of China. The Secretary shall transfer amounts required by paragraph (1) to the trust fund established under subsection (a) not less frequently than quarterly. The Secretary shall invest such portion of the trust fund established under subsection (a) as is not required to meet current withdrawals in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States. The interest on, and the proceeds from the sale or redemption of, any obligations held in the trust fund established under subsection (a) shall be credited to and form a part of the trust fund. Amounts in the trust fund established under subsection (a) shall be available, as provided in advance in an appropriations Act, to compensate producers in the United States for lost revenue resulting from actions by the People's Republic of China to restrict imports from the United States in retaliation for measures taken under this Act. Not later than September 30, 2024, and annually thereafter, the Secretary of Agriculture shall— certify to Congress with respect to whether the Commodity Credit Corporation has sufficient borrowing authority to purchase any agricultural commodities that— were intended for export to the People's Republic of China; were not exported to the People's Republic of China as a result of actions by the People's Republic of China described in paragraph (1); and the producer was unable to sell to other purchasers at a fair price after a good faith attempt at the same price the producer expected for the export to the People's Republic of China; and if the Secretary of Agriculture certifies under clause (i) that the Commodity Credit Corporation does not have sufficient borrowing authority described in that clause, report to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives the amount of the shortfall in such sufficient borrowing authority. If the Secretary of Agriculture certifies under subparagraph (A)(i) that the Commodity Credit Corporation does not have sufficient borrowing authority to purchase any agricultural commodities described in that subparagraph— the Secretary of the Treasury shall transfer to the Secretary of Agriculture from the trust fund established under subsection (a) such amounts as are necessary to purchase any agricultural commodities described in subparagraph (A)(i) that the Commodity Credit Corporation has insufficient borrowing authority to purchase; and the Secretary of Agriculture shall use the amounts transferred to the Secretary of Agriculture under clause (i) and the facilities and authorities of the Commodity Credit Corporation to purchase those agricultural commodities. After any transfer of amounts under paragraph (2)(B), the Secretary of the Treasury shall transfer to the Secretary of Commerce from the trust fund established under subsection (a) such amounts as are necessary to purchase articles in the industries described in subparagraph (B) that— were intended for export to the People's Republic of China; were not exported to the People's Republic of China as a result of actions by the People's Republic of China described in paragraph (1); and the producer was unable to sell to other purchasers at a fair price after a good faith attempt at the same price the producer expected for the export to the People's Republic of China. The industries described in this subparagraph are the following: Semiconductors, semiconductor products, semiconductor services, and other related electrical and electronic equipment. Mineral fuels, oils, and distillation products. Aircraft and aircraft parts and aircraft-related services. After any transfer of amounts under paragraphs (2)(B) and (3), the Secretary of the Treasury shall transfer to the Secretary of Commerce from the trust fund established under subsection (a) such amounts as are necessary to purchase articles not covered by paragraph (2) or (3) that— were intended for export to the People's Republic of China; were not exported to the People's Republic of China as a result of actions by the People's Republic of China described in paragraph (1); and the producer was unable to sell to other purchasers at a fair price after a good faith attempt at the same price the producer expected for the export to the People's Republic of China. If, at the end of a fiscal year and after the transfer of any amounts under paragraphs (2)(B), (3), and (4), amounts remain in the trust fund established under subsection (a), the Secretary of the Treasury shall transfer such remaining amounts to the Department of Defense to acquire the following: Harpoons or other anti-ship cruise missiles. Loitering munitions. Shallow water naval mines. Any ground launched missile with an anti-ship seeker on it. Patriot surface-to-air missiles. Stinger air defense systems. National Advanced Surface-to-Air Missile Systems. Javelin missiles. Tomahawk Land Attack Missiles. Maritime Strike Tomahawk cruise missiles. SM–6 missiles. SM–3 Block IIA missiles. Terminal High Altitude Defense systems. PAC–3 missiles. Mk48 machine guns. Precision Strike Missiles. Such other munitions as the President and the Secretary of Defense determine necessary to defend Taiwan and other partners and allies of the United States in the Indo-Pacific region from the aggression of the People's Republic of China. The trust fund established under subsection (a) and the requirements of subsection (d) shall terminate on the date that is 10 years after the date of the enactment of this Act. Any amounts in the trust fund on the date of the termination of the trust fund under paragraph (1) shall be transferred to the general fund of the Treasury and used for deficit reduction.
Section 10
9. Authorization of appropriations for United States International Trade Commission There are authorized to be appropriated to the United States International Trade Commission to hire additional employees and improve information technology— for fiscal year 2025, $3,600,000; and for fiscal year 2026 and each fiscal year thereafter, $3,000,000.
Section 11
10. Articles specified The articles specified in this section are— articles classified under section V of the HTS; and the following: