A bill to amend the Tariff Act of 1930 to improve enforcement of antidumping and countervailing duty laws.

Amends the Tariff Act of 1930 to require the administering authority, if there is an affirmative finding that countervailing duties are warranted and a petition alleges that a subsidy is inconsistent with the Agreement on Subsidies and Countervailing Measures, or if a countervailing duty investigation is commenced and the administering authority has reason to believe that a subsidy is inconsistent with the Agreement, to: (1) notify the Customs Service of such determination and direct customs officers to collect information on imports of the type of merchandise that is the subject of the investigation; (2) order the suspension of liquidation of such imports that are entered, or withdrawn from warehouse, on or after the publication of the notice of such determination; and (3) begin monitoring the volume of such imports to determine whether there has been a surge of such imports since the countervailing duty investigation petition was filed or the investigation commenced. Prohibits a determination of the existence of a surge of imports until 60 days after the petition was filed or the investigation commenced. Terminates the suspension of liquidation if the preliminary determination of the administering authority is that no subsidy is being provided.

Requires the administering authority to order the posting of security for unliquidated entries of affected imports if the administering authority makes a preliminary determination that an inconsistent subsidy exists and there has been a surge of such imports. Terminates any suspension of liquidation and requires the release of any security posted with respect to such imports if a countervailing duty investigation is terminated. Provides that the final determination of whether there is a subsidy which is inconsistent with the Agreement and whether there is a surge of imports may be affirmative even if the preliminary determination was negative. Removes the requirement that the International Trade Commission (ITC) also determine whether there is material injury that will be difficult to repair and whether the material injury resulted from the surge of imports.

Terminates the suspension of liquidation of such imports and releases any security posted with respect to such imports if the final determination of the administering authority is that there is no inconsistent subsidy or surge of imports or the final determination of the ITC is that there is no material injury but that there is a threat of material injury or that the establishment of an industry in the United States is materially retarded. Removes the provision that prohibits any determination as to the presence of critical circumstances with respect to non-duty-free imports.

Requires the administering authority, if there is an affirmative finding of the need to impose an antidumping duty or if an antidumping duty investigation is initiated by the administering authority, to: (1) notify the Customs Service of such determination and direct customs officers to collect information on imports of the type of merchandise that is the subject of the investigation; and (2) begin monitoring the volume of such imports to determine whether there has been a surge of such imports since the antidumping petition was filed or the investigation commenced. Prohibits a determination of the existence of a surge of imports until 60 days after the petition was filed or the investigation commenced. Suspends the liquidation of duties on such imports starting 70 days after the antidumping petition is filed or the investigation is commenced. Terminates such suspension of duties if the preliminary determination is that the imports are being sold or are likely to be sold at less than fair market value (are being dumped).

Requires the administering authority to order the posting of security for unliquidated entries of affected imports if the administering authority makes a preliminary determination that goods are being dumped.

Terminates the suspension of liquidation and requires the release of any security posted with respect to such imports if an antidumping duty investigation is terminated.

Provides that the final determination of dumping may be affirmative even if the preliminary determination was negative. Removes the provision that required the final determination of the ITC to include a finding as to whether a retroactive duty should be imposed on dumped imports.

Requires the administering authority, if it determines that merchandise is imported into the U.S. customs territory by, or for, a manufacturer, producer, seller, or exporter for the purpose of absorbing antidumping duties on behalf of a U.S. purchaser, to declare the importation a sham transaction and direct customs officers to treat the U.S. purchaser as the importer solely liable for such duties. Sets forth factors to consider in determining whether a transaction is a sham transaction.

Prohibits the ITC from determining that there is no material injury or threat of material injury to U.S. producers of fungible products by reason of imports of such products solely on the basis of evidence that: (1) sales of such imports were not the first sales or offers at a reduced price in the relevant market; (2) similar price declines occurred in comparable markets; (3) U.S. producers also import such products; or (4) U.S. producers of the products are profitable.

Requires the administering authority to investigate whether diversionary input dumping is occurring whenever: (1) the administering authority has reasonable grounds to suspect that such dumping is occurring; (2) a specified type of material or component is routinely used as a major material or component in manufacturing or producing the merchandise under investigation; and (3) generally accepted trade statistics indicate that, after the issuance of an antidumping duty order or the entry into force of an international agreement relating to the importation into the United States of such material or component, the quantity or market share of shipments to the United States of such material or component has decreased or the rate of increase of such shipments has decreased and shipments to the United States of the merchandise under investigation have increased. Sets forth the timetable for preliminary and final determinations by the administering authority as to the existence of diversionary input dumping. Provides that the foreign market value of merchandise that constitutes diversionary input dumping shall be the constructed value of the merchandise. Provides for increasing the cost of the material or component that is found to be involved in diversionary input dumping.

Requires the administering authority, if the merchandise involved in a dumping investigation is exported from a nonmarket economy country and it is not possible to accurately determine the foreign market value of such merchandise from the information submitted by such country, to determine the foreign market value on the basis of the trade-weighted average price at which comparable merchandise is sold by a specified eligible market economy country. Provides for determining such foreign market value when there is no eligible market economy producer. Provides a special rule for imports of fungible products. Defines "nonmarket economy country" and "eligible market economy country." Authorizes the administering authority to suspend an antidumping investigation involving a nonmarket economy country if specified conditions are met. Requires the Commissioner of Customs and the ITC to provide the administering authority, upon request, with a copy of all public and proprietary information that they possess that is relevant to dumping proceedings involving merchandise from such countries.

Authorizes a domestic producer of an article that is like a component part or a downstream product to petition the administering authority to designate a downstream product for monitoring by the ITC. Sets forth information to be included in the petition. Requires the administering authority to determine whether there is a reasonable likelihood that imports of the downstream product will increase as an indirect result of any diversion with respect to component parts. Sets forth factors the administering authority may take into account in making such determination. Requires the ITC to make quarterly reports to the administering authority regarding the ITC monitoring of a downstream product.

Requires the administering authority to review the reports of the ITC and: (1) consider such information in determining whether to initiate an antidumping or countervailing duty investigation regarding a downstream product; and (2) request the ITC to cease its monitoring if the information indicates that imports are not increasing and there is no reasonable likelihood of diversion with respect to component parts.