Bill Summary
The Critical Mineral Supply Chain Realignment Act of 2024 is a bill that has been proposed to Congress. If passed, it would impose duties on certain imported products, including electromagnets, battery cells, electric storage batteries, and photovoltaic cells, from specific countries. These duties would vary depending on the country of origin and the date of enactment. The legislation also includes definitions of terms such as "control" and "person of the People's Republic of China" to clarify the scope of the duties and any potential loopholes. This bill aims to protect and realign the supply chain for critical minerals, which are important for various industries and national security.
Possible Impacts
1. Increased prices for certain products - The increased duties on imported electromagnets, battery cells, electric storage batteries, and photovoltaic cells from certain countries may lead to higher prices for these products, affecting consumers who rely on these products.
2. Job losses - The higher duties on imports from certain countries, particularly China, may lead to a decrease in demand and production, resulting in job losses for those employed in the production and manufacturing of these products.
3. Strained international relations - The bill may strain relationships with certain countries, specifically China, as it targets their industrial policies and military-civil fusion strategy. This could have economic and political implications for both the US and the countries affected by the bill.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4702 Introduced in Senate (IS)]
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118th CONGRESS
2d Session
S. 4702
To impose duties on electromagnets, battery cells, electric storage
batteries, and photovoltaic cells imported from certain countries.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 11 (legislative day, July 10), 2024
Mr. Rubio introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To impose duties on electromagnets, battery cells, electric storage
batteries, and photovoltaic cells imported from certain countries.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Critical Mineral Supply Chain
Realignment Act of 2024''.
SEC. 2. DUTIES ON ELECTROMAGNETS, BATTERY CELLS, ELECTRIC STORAGE
BATTERIES, AND PHOTOVOLTAIC CELLS IMPORTED FROM CERTAIN
COUNTRIES.
(a) In General.--Notwithstanding any other provision of law, there
shall be imposed a duty at the rate specified in subsection (b) on each
article that is imported into the United States and classified under
any of the following headings or subheadings of the Harmonized Tariff
Schedule of the United States:
(1) 8505.
(2) 8506.
(3) 8507.
(4) 8541.42.00.
(5) 8541.43.00.
(b) Rates of Duty Specified.--The rate of duty specified in this
subsection with respect to an article described in subsection (a) is--
(1) 25 percent ad valorem on and after the date of the
enactment of this Act if the article was produced or
manufactured, or underwent final assembly, in a country other
than--
(A) an ally described in section 3(b)(2) of the
Arms Export Control Act (22 U.S.C. 2753(b)(2));
(B) a country designated by the President as a
major non-NATO ally under section 517 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2321k);
(C) Mexico, if the United States-Mexico-Canada
Agreement, or a successor agreement, is in effect;
(D) Costa Rica, El Salvador, Guatemala, Honduras,
and the Dominican Republic, if the Dominican Republic-
Central America Free Trade Agreement, or a successor
agreement, is in effect;
(E) Chile, if the United States-Chile Free Trade
Agreement, or a successor agreement, is in effect; and
(F) India, for a period of 10 years beginning on
the date of the enactment of this Act;
(2) if the article was produced or manufactured, or
underwent final assembly, by a person of the People's Republic
of China in a country described in paragraph (1), 150 percent
ad valorem on and after such date of enactment; and
(3) if the article was produced or manufactured, or
underwent final assembly, in the People's Republic of China--
(A) 150 percent ad valorem during the period--
(i) beginning on such date of enactment;
and
(ii) ending on the day before the date that
is 1 year after such date of enactment;
(B) 300 percent ad valorem during the period--
(i) beginning on the date that is 1 year
after such date of enactment; and
(ii) ending on the day before the date that
is 2 years after such date of enactment;
(C) 450 percent ad valorem during the period--
(i) beginning on the date that is 2 years
after such date of enactment; and
(ii) ending on the day before the date that
is 3 years after such date of enactment; and
(D) 800 percent ad valorem on and after the date
that is 3 year after such date of enactment.
(c) Additional Duties.--The duty imposed under subsection (a) with
respect to an article described in that subsection is in addition to
any other duty applicable to the article.
(d) Definitions.--In this section:
(1) Control.--The term ``control'' has the meaning given
that term in section 800.208 of title 31, Code of Federal
Regulations (as in effect on the date of the enactment of this
Act).
(2) Owned, controlled, directed, or operated.--The term
``owned, controlled, directed, or operated'', with respect to
an entity, includes any entity for which, on any date during
the most recent 12-month period, not less than 25 percent of
the equity interests in such entity are held directly or
indirectly by 1 or more persons of the People's Republic of
China described in any of subparagraphs (A) through (E) of
paragraph (3), including through--
(A) interests in co-investment vehicles, joint
ventures, or similar arrangements; or
(B) a derivative financial instrument or
contractual arrangement between the entity and such a
person, including any such instrument or contract that
seeks to replicate any financial return with respect to
such entity or interest in such entity.
(3) Person of the people's republic of china.--The term
``person of the People's Republic of China'' means--
(A) the Government of the People's Republic of
China;
(B) any agency, instrumentality, official, or agent
of that Government;
(C) any entity the headquarters of which are
located in the People's Republic of China;
(D) any entity organized under the laws of the
People's Republic of China;
(E) any entity substantively involved in the
industrial policies or military-civil fusion strategy
of the People's Republic of China, including by
accepting funding from, performing a service for, or
receiving a subsidy from the People's Republic of China
related to such policies or strategy; or
(F) any entity owned, controlled, directed, or
operated by an entity described in any of subparagraphs
(A) through (E).
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