19 U.S.C. § 1677–1 — Upstream subsidies
submitted 96 years ago by Pub. L. 98-573 to r/title-19-CUSTOMS-DUTIES · 407 words · no verdicts yet
This section defines an upstream subsidy and explains when it creates a competitive benefit. If one exists for the goods in a proceeding, the benefit is added to the countervailing duty, subject to a cap.
(a) “Upstream subsidy” means a countervailable subsidy, other than an export subsidy, that: (1) an authority pays or provides for an “input product” used in the same country to make or produce goods involved in a countervailing-duty proceeding; (2) in the administering authority’s judgment gives those goods a competitive benefit; and (3) significantly affects their manufacturing or production cost. A customs union of two or more foreign countries, subdivisions, territories, or possessions outside the United States is treated as one country when the union provides the subsidy.
(b) (1) Unless paragraph (2) applies, the authority finds a competitive benefit when the input’s price for that use is lower than the price the manufacturer or producer would otherwise pay another seller in an arms-length transaction. (2) If an earlier proceeding found a subsidy on the comparison input, the authority may (A) adjust the otherwise payable price to reflect that subsidy, or (B) use a price from another source instead.
(c) If, during a countervailing-duty proceeding, the authority decides an upstream subsidy is or was provided for the goods, it must add to the countervailing duty an amount equal to the competitive benefit described in subsection (a)(2), but never more than the subsidy amount found for the upstream product.
The term “upstream subsidy” means any countervailable subsidy, other than an export subsidy, that—
is paid or bestowed by an authority (as defined in section 1677(5) of this title) with respect to a product (hereafter in this section referred to as an “input product”) that is used in the same country as the authority in the manufacture or production of merchandise which is the subject of a countervailing duty proceeding;
in the judgment of the administering authority bestows a competitive benefit on the merchandise; and
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 countervailable subsidy is provided by the customs union.
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 arms-length transaction.
If the administering authority has determined in a previous proceeding that a countervailable 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 countervailable subsidy, or (B) select in lieu of that price a price from another source.
If the administering authority decides, during the course of a countervailing duty proceeding that an upstream countervailable subsidy is being or has been paid or bestowed regarding the subject merchandise, 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),1 except that in no event shall the amount be greater than the amount of the countervailable subsidy determined with respect to the upstream product.
Source credit: (June 17, 1930, ch. 497, title VII, § 771A, as added Pub. L. 98–573, title VI, § 613(a), Oct. 30, 1984, 98 Stat. 3035; amended Pub. L. 99–514, title XVIII, § 1886(a)(10), Oct. 22, 1986, 100 Stat. 2922; Pub. L. 103–465, title II, §§ 233(a)(5)(GG), 268, 270(a)(1)(K), (L), (2)(B), (c)(3), Dec. 8, 1994, 108 Stat. 4901, 4916, 4917; Pub. L. 104–295, § 20(b)(2), Oct. 11, 1996, 110 Stat. 3527.)
- 1930Enacted · Pub. L. 98-573 · 98 Stat. 3035
- 1986Amended · Pub. L. 99-514 · 100 Stat. 2922
- 1994Amended · Pub. L. 103-465 · 108 Stat. 4901, 4916, 4917
- 1996Amended · Pub. L. 104-295 · 110 Stat. 3527
A history note hasn’t been published yet. The record shows enactment by Pub. L. 98-573 on 1930-06-17.
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