[Code of Federal Regulations]
[Title 19, Volume 3]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR351.223]

[Page 235-236]
 
                        TITLE 19--CUSTOMS DUTIES
 
                         DEPARTMENT OF COMMERCE
 
PART 351--ANTIDUMPING AND COUNTERVAILING DUTIES--Table of Contents
 
        Subpart B--Antidumping and Countervailing Duty Procedures
 
Sec.  351.223  Procedures for initiation of downstream product monitoring.

    (a) Introduction. Section 780 of the Act establishes a mechanism for 
monitoring imports of ``downstream products.'' In general, section 780 
is aimed at situations where, following the issuance of an antidumping 
or countervailing duty order on a product that is used as a component in 
another product, exports to the United States of that other (or 
``downstream'') product increase. Although the Department is responsible 
for determining whether trade in the downstream product should be 
monitored, the Commission is responsible for conducting the actual

[[Page 236]]

monitoring. The Commission must report the results of its monitoring to 
the Department, and the Department must consider the reports in 
determining whether to self-initiate an antidumping or countervailing 
duty investigation on the downstream product. This section contains 
rules regarding applications for the initiation of downstream product 
monitoring and decisions regarding such applications.
    (b) Contents of application. An application to designate a 
downstream product for monitoring under section 780 of the Act must 
contain the following information, to the extent reasonably available to 
the applicant:
    (1) The name and address of the person requesting the monitoring and 
a description of the article it produces which is the basis for filing 
its application;
    (2) A detailed description of the downstream product in question;
    (3) A detailed description of the component product that is 
incorporated into the downstream product, including the value of the 
component part in relation to the value of the downstream product, and 
the extent to which the component part has been substantially 
transformed as a result of its incorporation into the downstream 
product;
    (4) The name of the country of production of both the downstream and 
component products and the name of any intermediate country from which 
the merchandise is imported;
    (5) The name and address of all known producers of component parts 
and downstream products in the relevant countries and a detailed 
description of any relationship between such producers;
    (6) Whether the component part is already subject to monitoring to 
aid in the enforcement of a bilateral arrangement within the meaning of 
section 804 of the Trade and Tariff Act of 1984;
    (7) A list of all antidumping or countervailing duty investigations 
that have been suspended, or antidumping or countervailing duty orders 
that have been issued, on merchandise that is related to the component 
part and that is manufactured in the same foreign country in which the 
component part is manufactured;
    (8) A list of all antidumping or countervailing duty investigations 
that have been suspended, or antidumping or countervailing duty orders 
that have been issued, on merchandise that is manufactured or exported 
by the manufacturer or exporter of the component part and that is 
similar in description and use to the component part; and
    (9) The reasons for suspecting that the imposition of antidumping or 
countervailing duties has resulted in a diversion of exports of the 
component part into increased production and exportation to the United 
States of the downstream product.
    (c) Determination of sufficiency of application. Within 14 days 
after an application is filed under paragraph (b) of this section, the 
Secretary will rule on the sufficiency of the application by making the 
determinations described in section 780(a)(2) of the Act.
    (d) Notice of Determination. The Secretary will publish in the 
Federal Register notice of each affirmative or negative ``monitoring'' 
determination made under section 780(a)(2) of the Act, and if the 
determination under section 780(a)(2)(A) of the Act and a determination 
made under any clause of section 780(a)(2)(B) of the Act are 
affirmative, will transmit to the Commission a copy of the determination 
and the application. The Secretary will make available to the 
Commission, and to its employees directly involved in the monitoring, 
the information upon which the Secretary based the initiation.