Bill Details
S.172 - 119th Congress
Status
Latest action
2025-01-21 - Read twice and referred to the Committee on Finance.
Introduced Date
2025-01-21
Policy Area
Foreign Trade and International Finance
Committees
View committees (1)
Sponsors
6
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would make it easier for the U.S. to treat certain imported goods as coming from a “foreign adversary” country for trade enforcement purposes, even if the goods were made or finished in another place. In simple terms, if an article is produced, manufactured, or finally assembled by a company tied to one of several listed foreign adversary governments, the U.S. could treat that item as if it originated in that adversary country when applying tariffs, import limits, or other trade actions. The goal is to reduce ways companies might try to avoid U.S. trade penalties by moving production through other countries or by using closely connected business entities.
- The rule would apply to trade actions under three existing laws: Section 301, Section 203, and Section 232, which are used for unfair trade practices, import injury, and national security concerns.
- The bill says an entity can count as “owned, controlled, directed, or operated” by a foreign adversary party if foreign adversary parties hold at least 25% of its equity interests during the most recent 12 months.
- It also covers ownership through joint ventures, co-investment arrangements, and some financial contracts or derivative deals that effectively give a foreign adversary interest in the company.
- The listed foreign adversary countries are China, Russia, Iran, North Korea, Cuba, and Venezuela while Nicolás Maduro is president. Covered parties include their governments, government agencies, companies based there, and certain companies linked to China’s industrial or military-civil plans.
Official Summaries
Stopping Adversarial Tariff Evasion Act
This bill expands the applicability of certain trade enforcement actions to goods from entities (e.g., businesses) that are owned, controlled, directed, or operated by a foreign adversary (i.e., China, Russia, Iran, North Korea, Cuba, and the Maduro regime of Venezuela). The bill applies to an entity for which, on any date during the most recent 12-month period, at least 25% of the equity interests in such entity are held directly or indirectly by one or more foreign adversary parties.
Currently, the Office of the U.S. Trade Representative may take certain enforcement actions under trade agreements or in response to certain unfair foreign trade practices (Section 301 of the Trade Act of 1974), and the President may take certain actions after a determination of import injury (Section 203 of the Trade Act of 1974) or to safeguard national security (Section 232 of the Trade Expansion Act of 1962).
This bill applies these enforcement actions to any good 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 the good originated in the foreign adversary country. Therefore, these enforcement actions shall apply to goods from companies that are based in other countries and are tied to foreign adversaries. (For example, additional tariffs may be imposed on goods from a Chinese manufacturer that are produced in Vietnam.)
Current Full Text
[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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