S. 1886 — ANTE Act

This section establishes in the Trade Act of 1974 a process authorizing the U.S. Trade Representative (USTR) to inquire—either self-initiated or upon request by interested persons or Congress—into whether a covered entity owned or controlled by a nonmarket economy (NME) country 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 (i.e., duties addressing unfair trade practices such as intellectual property violations). (Section 301 authorizes the USTR to investigate foreign trade barriers and impose retaliatory duties.) The USTR must determine within 45 days of a request whether an inquiry is warranted and, if so, make an affirmative determination of duty evasion within 180 days if the third-country investment is by the covered entity and produces or plans to produce section 301-covered goods. Upon an affirmative determination, and subject to presidential direction, the USTR may impose remedial measures—including duties on third-country goods produced by the covered entity at least equal to the section 301 duty—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 NME control of the investment, whichever is shorter. (Thus, the provision targets duty circumvention, such as NME entities shifting production to avoid U.S. tariffs.) A covered entity means an entity owned, controlled, subject to the jurisdiction or direction of, or operated by an NME country (using the control definition in 31 CFR 800.208), or with at least 25% equity interests held directly or indirectly by NME entities (including via joint ventures or derivatives); an NME country means one designated as such under antidumping law (19 U.S.C. 1677(18)) and on the Special 301 Priority Watch List for intellectual property concerns. If no measure is imposed, the USTR must report to Congress with a justification, including social and economic impacts.