H.R. 3575 — ANTE Act

This section establishes authority for the U.S. Trade Representative (USTR) to inquire into whether a covered entity (i.e., an entity owned, controlled by, or with at least 25% equity held directly or indirectly by a nonmarket economy country on the Special 301 Priority Watch List) is establishing, planning to establish, or has established an investment in a third country to evade duties imposed under section 301 of the Trade Act of 1974 (i.e., duties addressing unfair foreign trade practices such as intellectual property violations). (As background, section 301 authorizes USTR to investigate and respond to foreign practices burdening U.S. commerce.) The section directs USTR to determine within 45 days of a request from interested parties or Congress whether to initiate an inquiry and, if initiated, to make an affirmative determination of duty evasion within 180 days if the third-country investment is being or has been established by the covered entity and produces or plans to produce section 301 duty-subject goods. If an affirmative determination is made, USTR may impose remedial measures—including duties on third-country goods produced by the covered entity at least equal to the section 301 duties on the nonmarket economy country's goods—during a section 301 investigation (if production has begun) or prospectively (if planned); such measures last as long as the relevant section 301 action or the nonmarket economy country's controlling interest in the investment, whichever is shorter. If no measure is imposed, USTR must submit to Congress a justification including social and economic impacts.