Modifications to rates of duty to address trade with the People's Republic of China

(a) Establishment of rates of duty with respect to articles of the People’s Republic of China (1) In general The President, by proclamation, shall revise the Harmonized Tariff Schedule of the United States (in this Act referred to as the HTS) to include rates of duty applicable only with respect to articles of the People’s Republic of China. (2) Rates (A) In general The rates of duty proclaimed under paragraph (1) shall be, except as provided by subsection (h), the rates of duty set forth in the column 2 rate of duty column of the HTS on the day before the date of the enactment of this Act, modified as required by subsection (b) and, if applicable, adjusted for inflation under subsection (c). (B) Minimum rate of duty for non-strategic goods A rate of duty described in subparagraph (A) of an article that is not an article specified in section 203 that is less than 35 percent ad valorem as of the day before the date of the enactment of this Act shall be increased to 35 percent ad valorem. (b) Modifications to rates of duty with respect to articles of the People’s Republic of China (1) Ad valorem duties and free rates of duty (A) In general A rate of duty set forth in the column 2 rate of duty column of the HTS that is expressed as a percentage, or that is free, shall, except as provided by subparagraph (B) or (C), continue to apply to articles of the People's Republic of China. (B) Minimum rate of 100 percent for certain articles In the case of an article specified in section 203, a rate of duty described in subparagraph (A) that is less than 100 percent ad valorem as of the day before the date of the enactment of this Act shall be increased to 100 percent ad valorem. (2) Specific and compound rates of duty (A) In general A rate of duty set forth in the column 2 rate of duty column of the HTS that is expressed as a specific or compound rate of duty shall, except as provided by subparagraphs (B) and (C), continue to apply to articles of the People's Republic of China, subject to adjustment for inflation under subsection (c). (B) Minimum rate equivalent to 100 percent ad valorem for certain articles In the case of an article specified in section 203, a rate of duty described in subparagraph (A) that is less than the equivalent of 100 percent ad valorem, after adjustment for inflation under subsection (c), shall be increased to be equivalent to 100 percent ad valorem. (c) Adjustment of duties for inflation (1) In general As soon as practicable after the date of the enactment of this Act, and on December 31 of each year thereafter, the President shall proclaim modifications to adjust the specific and compound rates of duty described in subsection (b)(2), as modified under that subsection, to reflect the increase in the average of the Consumer Price Index for the most recent full calendar year for which data are available compared to the Consumer Price Index for calendar year 1930. (2) Effective date of inflation adjustments (A) First adjustment (i) In general The first adjustment required by paragraph (1) shall apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after January 1, 2025. (ii) Rules for retroactive collection Not later than 180 days after the date of the enactment of this Act, the Commissioner of U.S. Customs and Border Protection shall issue rules for the retroactive collection of duties under clause (i). (B) Subsequent adjustments Each adjustment required by paragraph (1) after the first such adjustment shall apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after January 1 of the year beginning after the issuance of the proclamation. (3) Base rate For purposes of the adjustment required by paragraph (1), the President shall use the rate of duty applicable under the column 2 general rate of duty column of the HTS, as modified under subsection (b), as the base rate. (4) Consumer Price Index defined For purposes of this subsection, the term Consumer Price Index means the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. (d) Phase-In of duty increases The President shall, by proclamation, phase-in the application of the duty increases required by subsection (a), as modified under subsection (b) and, if applicable, adjusted for inflation under subsection (c), as follows: (1) On and after the date that is 180 days after the date of the enactment of this Act, 10 percent of the total duty increase with respect to an article shall apply. (2) On and after the date that is 2 years after such date of enactment, 25 percent of the total duty increase with respect to an article shall apply. (3) On and after the date that is 4 years after such date of enactment, 50 percent of the total duty increase with respect to an article shall apply. (4) On and after the date that is 5 years after such date of enactment, 100 percent of the total duty increase with respect to an article shall apply. (e) Information from International Trade Commission (1) In general Not later than July 1 of each year, the United States International Trade Commission (in this Act referred to as the Commission) shall submit to the President the information described in paragraph (2) with respect to articles that are subject to a specific or compound rate of duty under the column 2 rate of duty column of the HTS and for which sufficient data are available to calculate the ad valorem equivalent of those rates of duty. (2) Information described The information described in this paragraph is an identification of which articles specified in section 203 have an ad valorem equivalent rate of duty of less than 100 percent after adjustment for inflation under subsection (c) and, for each such article, a calculation of the specific or compound rate of duty that would increase the rate of duty to be equivalent to 100 percent ad valorem. (f) Treatment of articles imported only from the People’s Republic of China (1) Tariff-rate quotas (A) Annual adjustments (i) In general Notwithstanding any other provision of law, the President shall, by proclamation, establish a tariff-rate quota that shall— (I) apply to each article imported only from the People's Republic of China; and (II) be set for each calendar year at an amount that is equal to the amount, if any, by which consumption of the article in the United States in the most recent calendar year for which data are available exceeds production of the article in the United States during that calendar year. (ii) Determination of the People's Republic of China as only source For purposes of subparagraph (A)(i)(I), the President shall determine that an article is imported only from the People's Republic of China if official trade statistics of the Department of Commerce for the most recent full calendar year for which data are available for the applicable subheading of any of chapters 1 through 97 of the HTS, as reported on entry summary forms, show that the article is imported only from the People's Republic of China and from no other country. (B) Entry of in-quota articles Notwithstanding any other provision of this section, an article described in subparagraph (A)(i)(I) that is entered before the applicable tariff-rate quota is reached for the calendar year in which the article is entered shall— (i) during the 3-year period beginning on the date of the enactment of this Act, be subject to the rate of duty applicable to the article on the day before such date of enactment; and (ii) after the period described in clause (i), be subject to the rate of duty applicable under subsection (a), as modified under subsection (b) and as phased-in under paragraph (2). (C) Entry of above-quota articles Notwithstanding any other provision of this section, an article described in subparagraph (A)(i)(I) that is entered after the tariff-rate quota is reached for the calendar year in which the article is entered shall be subject to a rate of duty of 100 percent ad valorem. (2) Phase-in of duty increases Beginning on the date that is 3 years after the date of the enactment of this Act, the President may, by proclamation, phase-in the application of the duty increases required by paragraph (1)(B) with respect to each article described in paragraph (1)(A)(i)(I) and entered before the applicable tariff-rate quota under paragraph (1) is reached for the calendar year in which the article is entered, as follows: (A) On and after the date that is 3 years after the date of the enactment of this Act, 10 percent of the total duty increase required by paragraph (1)(B) with respect to the article shall apply. (B) On and after the date that is 5 years after such date of enactment, 25 percent of the total duty increase required by paragraph (1)(B) with respect to the article shall apply. (C) On and after the date that is 6 years after such date of enactment, 50 percent of the total duty increase required by paragraph (1)(B) with respect to the article shall apply. (D) On and after the date that is 7 years after such date of enactment, 100 percent of the total duty increase required by paragraph (1)(B) with respect to the article shall apply. (3) Information from International Trade Commission Not later than July 1 of each year, the Commission shall submit to the President an estimate of the production and consumption in the United States of articles described in paragraph (1)(A)(i)(I) for which sufficient data are available to make such an estimate. (g) Authority To further modify duties specific to the People’s Republic of China (1) In general The President, by proclamation, may increase the rates of duty applicable to articles of the People’s Republic of China to rates that are higher than the rates of duty described in subsection (a) and modified as required by subsection (b) if the President determines doing so is necessary to counteract the dependence of the United States on imports from the People's Republic of China or to penalize the People's Republic of China for unfair trading practices. (2) Phase-in If the President proclaims an increase in a rate of duty under paragraph (1), the President shall provide for the increase to be phased-in over a period of 5 years on a schedule equivalent to the schedule set forth in subsection (d). (3) Report The President may, for one or more periods of not more than 60 days each, waive the application of this subsection with respect to articles described in paragraph (1) if the President certifies Congress, not later than 15 days before such waiver takes effect, that the waiver is vital to the national security interests of the United States. (h) Additional authorities (1) Authority to impose quotas to decrease reliance on Chinese imports The President may establish quotas for the progressive elimination of reliance on any articles imported from the People’s Republic of China. (2) Authority to prohibit imports (A) In general The President may prohibit the importation of any article from the People’s Republic of China if the President determines that— (i) the importation of the article poses a threat to the national security of the United States; or (ii) the article is produced in a manner that— (I) constitutes an unfair trade practice; or (II) violates human rights. (B) Regulations The President shall prescribe such regulations as may be necessary for the enforcement of this paragraph. (3) Additional authority In addition to the other authorities provided by this section, the President may proclaim such modifications to the HTS as the President determines appropriate to achieve the objectives of this Act, including with respect to the manner of reflecting any modifications in the HTS.