[House Document 107-185]
[From the U.S. Government Publishing Office]



107th Congress, 2d Session - - - - - - - - - - - House Document 107-185 


 
   TO FACILITATE POSITIVE ADJUSTMENT TO COMPETITION FROM IMPORTS OF 
                        CERTAIN STEEL PRODUCTS

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

DOCUMENTS DESCRIBING SAFEGUARD ACTION PROCLAIMED ON IMPORTS OF CERTAIN 
 STEEL PRODUCTS, PURSUANT TO SECTION 203(a)(1) OF THE TRADE ACT OF 1974




    March 6, 2002.--Message and accompanying papers referred to the 
         Committee on Ways and Means and ordered to be printed
                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
99-011                     WASHINGTON : 2002

To the Congress of the United States:
    In accordance with section 203(b) of the Trade Act of 1974, 
as amended (the ``Act''), I hereby transmit documents to the 
Congress that describe the safeguard action that I have 
proclaimed on imports of certain steel products, pursuant to 
the authority vested in me by section 203(a)(1) of the Act and 
as President of the United States, and the reasons for taking 
that action.

                                                    George W. Bush.
    The White House, March 5, 2002.
   To Facilitate Positive Adjustment to Competition From Imports of 
                         Certain Steel Products

                              ----------                              


            By the President of the United States of America

                             a proclamation

    1. On December 19, 2001, the United States International 
Trade Commission (ITC) transmitted to the President a report on 
its investigation under section 202 of the Trade Act of 1974, 
as amended (the ``Trade Act'') (19 U.S.C. 2252), with respect 
to imports of certain steel products.
    2. The ITC reached affirmative determinations under section 
202(b) of the Trade Act that the following products are being 
imported into the United States in such increased quantities as 
to be a substantial cause of serious injury, or threat of 
serious injury, to the domestic industries producing like or 
directly competitive articles: (a) certain carbon flatrolled 
steel, including carbon and alloy steel slabs (``slabs''); 
plate (including cut-to-length plate and clad plate) 
(``plate''); hot-rolled steel (including plate in coils) 
(``hot-rolled steel''); cold-rolled steel (other than grain-
oriented electrical steel) (``cold-rolled steel''); and 
corrosion-resistant and other coated steel (``coated steel'') 
(collectively, ``certain flat steel''); (b) carbon and alloy 
hot-rolled bar and light shapes (``hot-rolled bar''); (c) 
carbon and alloy cold-finished bar (``cold-finished bar''); (d) 
carbon and alloy rebar (``rebar''); (e) carbon and alloy welded 
tubular products (other than oil country tubular goods) 
(``certain tubular products''); (f) carbon and alloy flanges, 
fittings, and tool joints (``carbon and alloy fittings''); (g) 
stainless steel bar and light shapes (``stainless steel bar''); 
and (h) stainless steel rod. The ITC commissioners were equally 
divided with respect to the determination required under 
section 202(b) regarding whether (i) carbon and alloy tin mill 
products (``tin mill products'') and (j) stainless steel wire.
    3. The ITC provided detailed definitions of the products 
included in categories (a) through (j) of paragraph 2, and 
their corresponding subheadings, under the Harmonized Tariff 
Schedule of the United States (HTS) in Appendix A to its 
determination, set out at 66 Fed. Reg. 67304, 67308-67311 
(December 28, 2001). By February 4, 2002, the ITC provided 
additional information in response to a request by the United 
States Trade Representative (USTR) under section 203(a)(5) of 
the Trade Act (19 U.S. 2253(a)(5)) (the ``supplemental 
report'').
    4. Section 330(d)(1) of the Tariff Act of 1930, as amended 
(19 U.S.C. 1330(d)(1)), provides that, when the ITC is required 
to determine under section 202(b) of the Trade Act whether 
increased imports of an article are a substantial cause of 
serious injury, or the threat thereof, and the commissioners 
voting are equally divided with respect to such determination, 
then the determination agreed upon by either group of 
commissioners may be considered by the President as the 
determination of the ITC. Having considered the determinations 
of the commissioners with regard to tin mill products and 
stainless steel wire, I have decided to consider the 
determinations of the groups of commissioners voting in the 
affirmative with regard to each of these products to be the 
determination of the ITC.
    5. Pursuant to section 311(a) of the North American Free 
Trade Agreement Implementation Act (the ``NAFTA Implementation 
Act'') (19 U.S.C. 3371(a)), the ITC made findings as to whether 
imports from Canada and Mexico, considered individually, 
account for a substantial share of total imports and contribute 
importantly to the serious injury, or threat thereof, caused by 
imports. The ITC made negative findings with respect to imports 
from Canada of certain flat steel, tin mill products, rebar, 
stainless steel rod, and stainless wire; and the ITC also made 
negative findings with respect to imports from Mexico of tin 
mill products, hot-rolled bar, cold-finished bar, rebar, 
certain tubular products, stainless steel bar, stainless steel 
rod, andstainless steel wire. The ITC made affirmative findings 
with respect to imports from Canada of hot-rolled bar, cold-finished 
bar, carbon and alloy fittings, and stainless steel bar; and the ITC 
also made affirmative findings with respect to imports from Mexico of 
certain flat steel, and carbon and alloy steel fittings. The ITC 
commissioners were equally divided with respect to imports from Canada 
of certain tubular products.
    6. The ITC commissioners voting in the affirmative under 
section 202(b) of the Trade Act also transmitted to the 
President their recommendations made pursuant to section 202(e) 
of the Trade Act (19 U.S.C. 2252(e)) with respect to the 
actions that, in their view, would address the serious injury, 
or threat thereof, to the domestic industries and be most 
effective in facilitating the efforts of those industries to 
make a positive adjustment to import competition.
    7. Pursuant to section 203 of the Trade Act (19 U.S.C. 
2253), and after taking into account the considerations 
specified in section 203(a)(2) of the Trade Act and the ITC 
supplemental report, I have determined to implement action of a 
type described in section 203(a)(3) (a ``safeguard measure'') 
with regard to the following steel products:
          (a) certain flat steel, consisting of: slabs provided 
        for in the superior text to subheadings 9903.72.30 
        through 9903.72.48 in the Annex to this proclamation; 
        plate provided for in the superior text to subheadings 
        9903.72.50 through 9903.72.62 in the Annex to this 
        proclamation; hot-rolled steel provided for in the 
        superior text to subheadings 9903.72.65 through 
        9903.72.82 in the Annex to this proclamation; cold-
        rolled steel provided for in the superior text to 
        subheadings 9903.72.85 through 9903.72.04 in the Annex 
        to this proclamation; and coated steel provided for in 
        the superior text to subheadings 9903.73.07 through 
        9903.73.23 in the Annex to this proclamation;
          (b) hot-rolled bar provided for in the superior text 
        to subheadings 9903.73.42 through 9903.73.52 in the 
        Annex to this proclamation;
          (c) cold-finished bar provided for in the superior 
        text to subheadings 9903.73.55 through 9903.73.62 in 
        the Annex to this proclamation;
          (d) rebar provided for in the superior text to 
        subheadings 9903.73.65 through 9903.73.71 in the Annex 
        to this proclamation;
          (e) certain tubular products provided for in the 
        superior text to subheadings 9903.73.74 through 
        9903.73.86 in the Annex to this proclamation;
          (f) carbon and alloy fittings provided for in the 
        superior text to subheadings 9903.73.88 through 
        9903.73.95 in the Annex to this proclamation;
          (g) stainless steel bar provided for in the superior 
        text to subheadings 9903.73.97 through 9903.74.06 in 
        the Annex to this proclamation;
          (h) stainless steel rod provided for in the superior 
        text to subheadings 9903.74.08 through 9903.74.16 in 
        the Annex to this proclamation;
          (i) tin mill products provided for in the superior 
        text to subheadings 9903.73.26 through 9903.73.39 in 
        the Annex to this proclamation; and
          (j) stainless steel wire provided for in the superior 
        text to subheadings 9903.74.18 through 9903.74.24 in 
        the Annex to this proclamation.
The steel products listed in clauses (i) through (ix) of 
subdivision (b) of U.S. Note 11 to subchapter III of chapter 99 
of the HTS (``Note 11'') in the Annex of this proclamation were 
excluded from the determination of the ITC described in 
paragraph 2, and are excluded from these safeguard measures. I 
have also determined to exclude from these safeguard measures 
the steel products listed in the subsequent clauses of 
subdivision (b) of Note 11 in the Annex to this proclamation.
    8. Pursuant to section 312(a) of the NAFTA Implementation 
Act (19 U.S.C. 3372(a)), I have determined after considering 
the report and supplemental report of the ITC that imports from 
eachof Canada and Mexico of certain flat steel, tin mill 
products, hot-rolled bar, cold-finished bar, rebar, certain tubular 
products, carbon and alloy fittings, stainless steel bar, stainless 
steel rod, and stainless steel wire, considered individually, do not 
account for a substantial share of total imports or do not contribute 
importantly to the serious injury or threat of serious injury found by 
the ITC. Accordingly, pursuant to section 312(b) of the NAFTA 
Implementation act (19 U.S.C. 3372(b)), I have excluded certain flat 
steel, tin mill products, hot-rolled bar, cold-finished bar, rebar, 
certain tubular products, carbon and alloy fittings, stainless steel 
bar, stainless steel rod, and stainless steel wire the product of 
Mexico or Canada from the actions I am taking under section 203 of the 
Trade Act.
    9. Pursuant to section 203 of the Trade Act (19 U.S.C. 
2253), the actions I have determined to take shall be safeguard 
measures in the form of:
          (a) a tariff rate quota on imports of slabs described 
        in paragraph 7, imposed for a period of 3 years plus 1 
        day, with annual increases in the within-quota 
        quantities and annual reductions in the rates of duty 
        applicable to goods entered in excess of those 
        quantities in the second and third years; and
          (b) an increase in duties on imports of certain flat 
        steel, other than slabs (including plate, hot-rolled 
        steel, cold-rolled steel and coated steel), hot-rolled 
        bar, cold-finished bar, rebar, certain welded tubular 
        products, carbon and alloy fittings, stainless steel 
        bar, stainless steel rod, tin mill products, and 
        stainless steel wire, as described in paragraph 7, 
        imposed for a period of 3 years plus 1 day, with annual 
        reductions in the rates of duty in the second and third 
        years, as provided in the Annex to this proclamation.
    10. The safeguard measures described in paragraph 9 shall 
not apply to the products listed in clauses following clause 
(ix) in subdivision (b) of Note 11 in the Annex to this 
proclamation.
    11. These safeguard measures shall apply to imports from 
all countries, except for products of Canada, Israel, Jordan, 
and Mexico.
    12. These safeguard measures shall not apply to imports of 
any product described in paragraph 7 of the developing country 
that is a member of the World Trade Organization (WTO), as long 
as that country's share of total imports of the product, based 
on imports during a recent representative period, does not 
exceed 3 percent, provided that imports that are the product of 
all such countries with less than 3 percent import share 
collectively account for not more than 9 percent of total 
imports of the product. If I determine that a surge in imports 
of a product described in paragraph 7 of a developing country 
WTO member undermines the effectiveness of the pertinent 
safeguard measure, the safeguard measure shall be modified to 
apply to such product from such country.
    13. The in-quota quantity in each year under the tariff 
rate quota described in paragraph 9 shall be allocated among 
all countries except those countries the products of which are 
excluded from such tariff rate quota pursuant to paragraphs 11 
and 12.
    14. Pursuant to section 203(a)(1)(A) of the Trade Act (19 
U.S.C. 2253(a)(1)(A)), I have further determined that these 
safeguard measures will facilitate efforts by the domestic 
industry to make a positive adjustment to import competition 
and provide greater economic and social benefits than costs. If 
I determine that further action is appropriate and feasible to 
facilitate efforts by the pertinent domestic industry to make a 
positive adjustment to import competition and to provide 
greater economic and social benefits than costs, or if I 
determine that the conditions under section 204(b)(1) of the 
Trade Act are met, I shall reduce, modify, or terminate the 
action established in this proclamation accordingly. In 
addition, if I determinewithin 30 days of the date of this 
proclamation, as a result of consultations between the United states 
and other WTO members pursuant to Article 12.3 of the WTO Agreement on 
Safeguards that is necessary to reduce, modify, or terminate a 
safeguard measure, I shall proclaim the corresponding reduction, 
modification, or termination of the safeguard measure within 40 days.
    15. Section 604 of the Trade Act, as amended (19 U.S.C. 
2483), authorizes the President to embody in the HTS the 
substance of the relevant provisions of that Act, and of other 
acts 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, GEORGE W. BUSH, President of the United 
States of America, acting under the authority vested in me by 
the Constitution and the laws of the United states, including 
but not limited to sections 203 and 604 of the Trade Act, and 
section 301 of title 3, United States Code, do proclaim that:
    (1) In order to establish increases in duty and a tariff 
rate quota on imports of the certain steel products described 
in paragraph 7 (other than excluded products), subchapter III 
of chapter 99 of the HTS is modified as provided in the Annex 
to this proclamation. Any merchandise subject to a safeguard 
measure that is admitted into U.S. foreign trade zones on or 
after March 20, 2002, must be admitted as ``privileged foreign 
status'' as defined in 19 CFR 146.41, and will be subject upon 
entry to any quantitative restrictions or tariffs related to 
the classification under the applicable HTS subheading.
    (2) Such imports of certain steel that are the product of 
Canada, Israel, Jordan, or Mexico shall be excluded from the 
safeguard measures established by this proclamation, and such 
imports shall not be counted toward the tariff rate quota 
limits that trigger the over-quota rates of duty.
    (3) Except as provided in clause (4) below, imports of 
certain steel that are the product of WTO member developing 
countries, as provided in subdivision (d)(i) of Note 11 in the 
Annex to this proclamation, shall be excluded from the 
safeguard measures established by this proclamation, and such 
imports shall not be counted toward the tariff rate quota 
limits that trigger the over-quota rates of duties.
    (4) Clause (3) above shall not apply to imports of a 
product that is the product of a country listed in subdivision 
(d)(i) of Note 11 in the Annex to this proclamation if 
subdivision (d)(ii) of such Note indicates that such country's 
share of total imports of the product exceeds 3 percent, or 
that imports of the product from all listed countries with less 
than 3 percent import share collectively account for more than 
9 percent of total imports of the product. The USTR is 
authorized to determine whether a surge in imports of a product 
that is the product of a country listed in subdivision (d)(i) 
undermines the effectiveness of the pertinent safeguard measure 
and, if so, upon publication of a notice in the Federal 
Register, to revise subdivision (d) of Note 11 in the Annex to 
this proclamation to indicate that such product from such 
country is not excluded from such safeguard measure.
    (5) Within 120 days after the date of this proclamation, 
the USTR is authorized to further consider any request for 
exclusion of a particular product submitted in accordance with 
the procedures set out in 66 Fed. Reg. 54321, 54322-54323 
(October 26, 2001) and, upon publication in the Federal 
Register of a notice of his finding that a particular product 
should be excluded, to modify the HTS provisions created by the 
Annex to this proclamation to exclude such particular product 
form the pertinent safeguard measure established by this 
proclamation.
    (6) In March of each year in which any safeguard measure 
established by this proclamation remains in effect, the USTRis 
authorized, upon publication in the Federal Register of a notice of his 
finding that a particular product should be excluded, to modify the HTS 
provisions created by the Annex to this proclamation to exclude such 
particular product from the pertinent safeguard measure established by 
this proclamation.
    (7) 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.
    (8) The modifications to the HTS made by this proclamation, 
including the Annex hereto, shall be effective with respect to 
goods entered, or withdrawn from warehouse for consumption, on 
or after 12:01 a.m., EST, on March 29, 2002, and shall continue 
in effect as provided in the Annex to this proclamation, unless 
such actions are earlier expressly reduced, modified, or 
terminated. Effective at the close of March 21, 2006, or such 
other date that is 1 year from the close of the safeguard 
measures established in this proclamation, the U.S. note and 
tariff provisions established in the Annex to this proclamation 
shall be deleted from the HTS.
    IN WITNESS WHEREOF, I have hereunto set my hand this fifth 
day of March, in the year of our Lord two thousand two, and of 
the Independence of the United States of America the two 
hundred and twenty-sixth.

                                                    George W. Bush.


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