the term sufficient domestic production means any covered product for which an equivalent product which is produced by domestic producers within the United States constitutes greater than the applicable percentage of domestic consumption of such product. (ii) Applicable percentage (I) In general For purposes of clause (i), the applicable percentage shall be equal to— (aa) 5 percent, or (bb) in the case of any covered product described in subclause (II), such percentage below 5 percent as is determined appropriate by the Secretary. (II) Specified product A covered product described in this subclause is a product— (aa) which the Secretary, in consultation with the United States Trade Representative, has determined requires an applicable percentage below 5 percent for purposes of supporting— (AA) national security, (BB) prevention of dumping from foreign countries, or (CC) development of a domestic industry, or (bb) for which, as a result of an international partnership agreement, a country which is a party to such agreement produces not less than 5 percent of United States domestic consumption of such covered product. (C) Adjustment In the case of any covered product for which no variable charge is imposed under this section pursuant to a determination under subparagraph (A), the Secretary shall— (i) review such determination not less than annually, and (ii) if the Secretary's review determines that sufficient domestic production has been attained with respect to such product, terminate application of subparagraph (A) for such product. (D) Exception This paragraph shall not apply with respect to any product which is included as a covered product pursuant to section 4695(d). (3) National security (A) Product waiver (i) In general The Secretary, in coordination with the Secretary of Defense and the Commissioner of U.S. Customs and Border Protection, may reduce the variable charge to zero for any covered product if the Secretary determines that such product is imported for purposes of fulfilling a contract with— (I)