83 FR 45025 - Adjusting Imports of Steel Into the United States
Executive Office of the President
Federal Register Volume 83, Issue 171 (September 4, 2018)
Page Range
45025-45030
FR Document
2018-19284
Federal Register, Volume 83 Issue 171 (Tuesday, September 4, 2018)
[Federal Register Volume 83, Number 171 (Tuesday, September 4, 2018)]
[Presidential Documents]
[Pages 45025-45030]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2018-19284]
Presidential Documents
Federal Register / Vol. 83 , No. 171 / Tuesday, September 4, 2018 /
Presidential Documents
[[Page 45025]]
Proclamation 9777 of August 29, 2018
Adjusting Imports of Steel Into the United States
By the President of the United States of America
A Proclamation
1. On January 11, 2018, the Secretary of Commerce
(Secretary) transmitted to me a report on his
investigation into the effect of imports of steel
articles on the national security of the United States
under section 232 of the Trade Expansion Act of 1962,
as amended (19 U.S.C. 1862). The Secretary found and
advised me of his opinion that steel articles are being
imported into the United States in such quantities and
under such circumstances as to threaten to impair the
national security of the United States. In light of
this conclusion, the Secretary recommended action to
adjust the imports of steel articles so that such
imports will not threaten to impair the national
security. The Secretary also recommended that I
authorize him, in response to specific requests from
affected domestic parties, to exclude from any adopted
import restrictions those steel articles for which the
Secretary determines there is a lack of sufficient
domestic production capacity of comparable products, or
to exclude steel articles from such restrictions for
specific national security-based considerations.
2. In Proclamation 9705 of March 8, 2018 (Adjusting
Imports of Steel Into the United States), I concurred
in the Secretary's finding that steel articles, as
defined in clause 1 of Proclamation 9705, as amended by
clause 8 of Proclamation 9711 of March 22, 2018
(Adjusting Imports of Steel Into the United States),
are being imported into the United States in such
quantities and under such circumstances as to threaten
to impair the national security of the United States,
and decided to adjust the imports of these steel
articles by imposing a 25 percent ad valorem tariff on
such articles imported from most countries. I further
authorized the Secretary to provide relief from these
additional duties for any steel article determined not
to be produced in the United States in a sufficient and
reasonably available amount or of a satisfactory
quality and also to provide such relief based on
specific national security considerations.
3. Consistent with the Secretary's recommendation that
I authorize him to exclude from any adopted import
restrictions those steel articles for which the
Secretary determines there is a lack of sufficient
domestic production of comparable products, or for
specific national security-based considerations, I have
determined to authorize the Secretary to provide relief
from quantitative limitations on steel articles adopted
pursuant to section 232 of the Trade Expansion Act of
1962, as amended, including those set forth in
Proclamation 9740 of April 30, 2018 (Adjusting Imports
of Steel Into the United States), and Proclamation 9759
of May 31, 2018 (Adjusting Imports of Steel Into the
United States), on the same basis as the Secretary is
currently authorized to provide relief from the duty
established in clause 2 of Proclamation 9705.
4. In addition, I have been informed that the
quantitative limitations set forth in Proclamation 9740
and Proclamation 9759 have in some cases already filled
for this year, and that projects in the United States
employing thousands of workers may be significantly
disrupted or delayed because imports of specific steel
articles, which were contracted for purchase prior to
my decision to adjust imports of these articles, cannot
presently be
[[Page 45026]]
entered into the United States because the quantitative
limits have already been reached. In light of these
circumstances, and after considering the impact on the
economy and the national security objectives of section
232 of the Trade Expansion Act of 1962, as amended, I
have determined to direct the Secretary to provide
relief from the quantitative limitations set forth in
Proclamation 9740 and Proclamation 9759 in limited
circumstances.
5. In light of my determinations, I have considered
whether it is necessary and appropriate in light of our
national security interests to make any corresponding
adjustments to the tariff or quotas imposed by previous
proclamations. It is my judgment that it is necessary
and appropriate, at this time, to maintain the current
tariff and quota levels. As directed in Proclamation
9705, the Secretary shall continue to monitor imports
of steel articles and inform me of any circumstances
that, in his opinion, might indicate the need for
further action under section 232 of the Trade Expansion
Act of 1962, as amended.
6. The United States continues to hold discussions with
countries on satisfactory alternative means to address
the threatened impairment to our national security
posed by steel articles imports. Should these
discussions result in an agreement concerning such
alternative means, I will take further action as
appropriate.
7. Section 232 of the Trade Expansion Act of 1962, as
amended, authorizes the President to adjust the imports
of an article and its derivatives that are being
imported into the United States in such quantities or
under such circumstances as to threaten to impair the
national security.
8. Section 604 of the Trade Act of 1974, as amended (19
U.S.C. 2483), authorizes the President to embody in the
Harmonized Tariff Schedule of the United States (HTSUS)
the substance of statutes affecting import treatment,
and actions thereunder, including the removal,
modification, continuance, or imposition of any rate of
duty or other import restriction.
NOW, THEREFORE, I, DONALD J. TRUMP, President of the
United States of America, by the authority vested in me
by the Constitution and the laws of the United States
of America, including section 232 of the Trade
Expansion Act of 1962, as amended, section 301 of title
3, United States Code, and section 604 of the Trade Act
of 1974, as amended, do hereby proclaim as follows:
(1) The Secretary, in consultation with the
Secretary of State, the Secretary of the Treasury, the
Secretary of Defense, the United States Trade
Representative (USTR), the Assistant to the President
for National Security Affairs, the Assistant to the
President for Economic Policy, and such other senior
Executive Branch officials as the Secretary deems
appropriate, is hereby authorized to provide relief
from the quantitative limitations applicable to steel
articles described in subheadings 9903.80.05 through
9903.80.58 of subchapter III of chapter 99 of the HTSUS
for any steel article determined not to be produced in
the United States in a sufficient and reasonably
available amount or of a satisfactory quality, and is
also authorized to provide such relief based upon
specific national security considerations. Such relief
shall be provided for a steel article only after a
request for relief is made by a directly affected party
located in the United States. Such relief may be
provided to directly affected parties on a party-by-
party basis taking into account the regional
availability of particular articles, the ability to
transport articles within the United States, and any
other factors as the Secretary deems appropriate. If
the Secretary determines that relief should be granted
to a requesting party for the importation of a
particular steel article, the Secretary shall publicly
post such determination and notify U.S. Customs and
Border Protection (CBP) of the Department of Homeland
Security concerning such article so that it will be
excluded from the applicable quantitative limitation.
Relief granted under this clause shall apply only to an
article entered for consumption, or withdrawn from
warehouse for consumption, on or after the date on
which the request for relief is granted by the
Secretary. Until such time as any applicable
[[Page 45027]]
quantitative limitation for a particular article has
been reached, CBP shall count any steel article for
which relief is granted under this clause toward such
quantitative limitation at the time when such steel
article is entered for consumption or withdrawn from
warehouse for consumption. Any steel article for which
relief is granted under this clause shall not be
subject to the additional rate of duty set forth in
Proclamation 9705, as amended. Steel articles for which
relief is granted under this clause shall be subject to
the duty treatment provided in subheading 9903.80.60 of
subchapter III of chapter 99 of the HTSUS, as
established by the Annex to this proclamation.
(2) The Secretary shall, on an expedited basis,
grant relief from the quantitative limitations set
forth in Proclamation 9740 and Proclamation 9759 and
their accompanying annexes for any steel article where
(i) the party requesting relief entered into a written
contract for production and shipment of such steel
article before March 8, 2018; (ii) such contract
specifies the quantity of such steel article that is to
be produced and shipped to the United States consistent
with a schedule contained in such contract; (iii) such
steel article is to be used to construct a facility in
the United States and such steel article cannot be
procured from a supplier in the United States to meet
the delivery schedule and specifications contained in
such contract; (iv) the payments made pursuant to such
contract constitute 10 percent or less of the cost of
the facility under construction; and (v) lack of relief
from the quantitative limitations on such steel article
would significantly disrupt or delay completion of the
facility being constructed in the United States with
the steel article specified in such contract. Until
such time as any applicable quantitative limitation for
a particular article has been reached, CBP shall count
any steel article for which relief is granted under
this clause toward such quantitative limitation at the
time when such steel article is entered for consumption
or withdrawn from warehouse for consumption. Any steel
article for which relief is granted under this clause
shall be subject to the additional rate of duty set
forth in clause 2 of Proclamation 9705, as amended by
this proclamation, when such steel article is entered
for consumption or withdrawn from warehouse for
consumption. This rate of duty is in addition to any
other duties, fees, exactions, and charges applicable
to such steel article. Any steel article provided
relief under this clause must be entered for
consumption, or withdrawn from warehouse for
consumption, on or before March 31, 2019, and may not
be granted further relief by the Secretary under clause
3 of Proclamation 9705, as amended. Steel articles for
which relief is granted under this clause shall be
subject to the duty treatment provided in subheading
9903.80.61 of subchapter III of chapter 99 of the
HTSUS, as established by the Annex to this
proclamation.
(3) The Secretary shall grant relief under clause 2
of this proclamation only upon receipt of a sworn
statement signed by the chief executive officer and the
chief legal officer of the party requesting relief.
Such statement shall attest that (i) the steel article
for which relief is sought and the associated contract
meet all of the criteria for relief set forth in clause
2 of this proclamation; (ii) the party requesting
relief will accurately report to CBP, in the manner
that CBP prescribes, the quantity of steel articles
entered for consumption, or withdrawn from warehouse
for consumption, pursuant to any grant of relief; and
(iii) the quantity of steel articles entered pursuant
to a grant of relief will not exceed the quantity
specified in such contract for delivery on or before
March 31, 2019. Upon granting relief under clause 2 of
this proclamation, the Secretary shall notify CBP and
publish a notice of relief for the quantity of steel
articles specified in such contract that are scheduled
for delivery on or before March 31, 2019. The Secretary
shall revoke any grant of relief under clause 2 of this
proclamation if the Secretary determines at any time
after such grant that the criteria for relief have not
been met and may, if the Secretary deems it
appropriate, notify the Attorney General of the facts
that led to such revocation.
[[Page 45028]]
(4) As soon as practicable, the Secretary shall
issue procedures for the requests for exclusion
described in clause 1 of this proclamation. The
issuance of such procedures is exempt from Executive
Order 13771 of January 30, 2017 (Reducing Regulation
and Controlling Regulatory Costs). CBP shall implement
exclusions granted pursuant to clause 1 or relief
provided under clause 2 of this proclamation as soon as
practicable.
(5) Clause 3 of Proclamation 9705, as amended by
Proclamation 9711, is further amended by striking the
fourth and fifth sentences and inserting in lieu
thereof the following two sentences: ``If the Secretary
determines that a particular steel article should be
excluded, the Secretary shall publicly post such
determination and notify U.S. Customs and Border
Protection (CBP) of the Department of Homeland Security
concerning such article so that it will be excluded
from the duties described in clause 2 of this
proclamation. For merchandise entered for consumption,
or withdrawn from warehouse for consumption, on or
after the date the duty established under this
proclamation is effective and with respect to which
liquidation is not final, such relief shall be
retroactive to the date the request for relief was
accepted by the Department of Commerce.''.
(6) In order to establish the duty rate on imports
of steel articles for which relief is granted under
clause 2 of this proclamation, clause 2 of Proclamation
9705, as amended, is further amended by striking the
last sentence and inserting in lieu thereof the
following two sentences: ``All steel articles imports
covered by subheading 9903.80.61, in subchapter III of
chapter 99 of the HTSUS, shall be subject to the
additional 25 percent ad valorem rate of duty
established herein with respect to goods entered for
consumption, or withdrawn from warehouse for
consumption, on or after 12:01 a.m. eastern daylight
time on the date specified in a determination by the
Secretary granting relief. These rates of duty, which
are in addition to any other duties, fees, exactions,
and charges applicable to such imported steel articles,
shall apply to imports of steel articles from each
country as specified in the preceding three
sentences.''.
(7) Where the government of a country identified in
the superior text to subheadings 9903.80.05 through
9903.80.58 of subchapter III of chapter 99 of the HTSUS
notifies the United States that it has established a
mechanism for the certification of exports to the
United States of products covered by the quantitative
limitations applicable to these subheadings, and where
such mechanism meets the operational requirements for
participation in an export certification system
administered by the United States, CBP, in consultation
with the Secretary, USTR, and other relevant executive
departments and agencies, may require that importers of
these products furnish relevant export certification
information in order to qualify for the treatment set
forth in subheadings 9903.80.05 through 9903.80.58.
Where CBP adopts such a requirement, it shall publish
in the Federal Register notice of the requirement and
procedures for the submission of relevant export
certification information. No article that is subject
to the export certification requirement announced in
such notice may be entered for consumption, or
withdrawn from warehouse for consumption, on or after
the effective date specified in such notice, except
upon presentation of a valid and properly executed
certification, in accordance with the procedures set
forth in the notice.
(8) Subdivision (c) of U.S. note 16 to subchapter
III of chapter 99 of the HTSUS is amended by inserting
at the end the following new sentence: ``Pursuant to
subheadings 9903.80.60 and 9903.80.61 and superior text
thereto, the Secretary may provide that any excluded
product shall be granted entry into the customs
territory of the United States when the applicable
quantitative limitation has filled for the specified
period for such good.''.
(9) Subdivision (d) of U.S. note 16 to subchapter
III of chapter 99 of the HTSUS is amended by inserting
after ``9903.80.58'' the phrase ``and 9903.80.60 and
9903.80.61''.
[[Page 45029]]
(10) The rate of duty specified in the HTSUS in the
general column for heading 9903.80.01 is amended by
striking ``25%'' and inserting in lieu thereof: ``The
duty provided in the applicable subheading + 25%''.
(11) The rate of duty specified in the HTSUS in the
general column for heading 9903.80.02 is amended by
striking ``50%'' and inserting in lieu thereof: ``The
duty provided in the applicable subheading + 50%''.
(12) The superior text for subheadings 9903.80.05
through 9903.80.58 of the HTSUS is amended by deleting
``Iron'' and inserting in lieu thereof: ``Except as
provided in subheadings 9903.80.60 and 9903.80.61,
iron''.
(13) To implement clauses 1 and 2 of this
proclamation, subchapter III of chapter 99 of the HTSUS
is modified as provided in the Annex to this
proclamation.
(14) The modifications to the HTSUS made by clauses
8 through 13 of this proclamation and the Annex to this
proclamation shall be effective with respect to goods
entered for consumption, or withdrawn from warehouse
for consumption, on or after 12:01 a.m. eastern
daylight time on August 30, 2018, and shall continue in
effect, unless such actions are expressly reduced,
modified, or terminated.
(15) Clause 5 of Proclamation 9705 is amended by
inserting ``for consumption'' after ``goods entered''
in the first sentence. Clause 5 of Proclamation 9711,
as amended, is amended by striking ``by this
proclamation'' from the end of the second sentence.
Clause 6 of Proclamation 9740 is amended by striking
``by clause 1 of this proclamation''.
(16) The Secretary, in consultation with CBP and
other relevant executive departments and agencies,
shall revise the HTSUS so that it conforms to the
amendments directed by this proclamation. The Secretary
shall publish any such modification to the HTSUS in the
Federal Register.
(17) Any provision of previous proclamations and
Executive Orders that is inconsistent with the actions
taken in this proclamation is superseded to the extent
of such inconsistency.
IN WITNESS WHEREOF, I have hereunto set my hand this
twenty-ninth day of August, in the year of our Lord two
thousand eighteen, and of the Independence of the
United States of America the two hundred and forty-
third.
(Presidential Sig.)
Billing code 3295-F8-P
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[GRAPHIC] [TIFF OMITTED] TD04SE18.007
[FR Doc. 2018-19284
Filed 8-31-18; 11:15 am]
Billing code 7020-02-C