U.S. note 31(l)(v)
(v) For purposes of headings 9903.91.14 and 9903.91.15:
(a) A “company or other entity that is owned or controlled by a Chinese person or legal entity” means:
(1) an entity or instrument of the People’s Republic of China, (including The Government of the People’s Republic of China);
(2) A natural person who is a citizen of the People’s Republic of China;
(3) A partnership, association, corporation, organization, or other combination of persons organized under the laws of or having its principal place of business in the People’s Republic of China;
(4) An entity organized under the laws of the United States or any other jurisdiction that is subject to the ownership, control, or direction of another entity that qualifies under subdivisions (v)(a)(1)–(3).
(5) An entity is “subject to the ownership, control, or direction of” another entity if:
(A) 25 percent or more of the entity’s board seats, voting rights, or equity interest are cumulatively held by that other entity, whether directly or indirectly via one or more intermediate entities; or
(B) the entity has entered into a licensing arrangement or other contract with another entity (a contractor) that entitles that other entity to exercise effective control over the manufacturing or assembly (collectively, “production”) of a ship-to-shore gantry crane, its components, assemblies, subassemblies, or other materials that would be attributed to the entity.
(b) “The Government of the People’s Republic of China” means:
(1) A national or subnational government of the People’s Republic of China;
(2) An agency or instrumentality of a national or subnational government of the People’s Republic of China;
(3) A dominant or ruling political party (e.g., Chinese Communist Party (CCP)) of the People’s Republic of China; or
(4) A current or former senior foreign political figure of the People’s Republic of China.
(c) “Senior foreign political figure” means: In order to be considered “senior,” an official should be or have been in a position of substantial authority over policy, operations, or the use of government-owned resources.
(1) a senior official, either in the executive, legislative, administrative, military, or judicial branches of the People’s Republic of China (whether elected or not);
(2) a senior official of a dominant or ruling foreign political party (e.g., CCP); or
(3) an immediate family member (spouse, parent, sibling, child, or a spouse’s parent and sibling) of any individual described in (v)(c)(1) or (v)(c)(2).
(d) For purposes of determining whether an entity indirectly holds board seats, voting rights, or equity interest in a tiered ownership structure:
(1) If a “parent” entity that qualifies under subdivisions (v)(a)(1)–(3) directly holds 50 percent or more of a “subsidiary” entity’s board seats, voting rights, or equity interest, then the parent and subsidiary are treated as equivalent in the evaluation of control, as if the subsidiary were an extension of the parent. As such, any holdings of the subsidiary are fully attributed to the parent.
(2) If a “parent” entity that qualifies under subdivisions (v)(a)(1)–(3) directly holds less than 50 percent of a “subsidiary” entity’s board seats, voting rights, or equity interest, then indirect ownership is attributed proportionately.
(e) For purposes of determining whether an entity has effective control, an entity that qualifies under subdivisions (v)(a)(1)–(3) that has a contractual relationship to determine the quantity or timing of production; to determine which entities may purchase or use the output of production; to restrict access to the site of production to the contractor’s own personnel; or the exclusive right to maintain, repair, or operate equipment that is critical to production, is deemed to have effective control over an entity.