[House Document 118-179]
[From the U.S. Government Publishing Office]
118th Congress, 2d Session - - - - - - - - - - - House Document 118-179
TO FACILITATE POSITIVE ADJUSTMENT TO COMPETITION FROM
IMPORTS OF FINE DENIER POLYESTER STAPLE FIBER
__________
COMMUNICATION
from
THEPRESIDENTOFTHEUNITEDSTATES
transmitting
DOCUMENTS TO THE CONGRESS THAT DESCRIBE THE SAFEGUARD ACTION PROCLAIMED
ON IMPORTS OF FINE DENIER POLYESTER STAPLE FIBER, PURSUANT TO 19 U.S.C.
2253(b); PUBLIC LAW 93-618, SEC. 203(b); (88 STAT. 2015)
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November 12, 2024.--Referred to the Committee on Ways and Means and
ordered to be printed
The White House,
Washington, November 8, 2024.
Hon. Mike Johnson,
Speaker of the House of Representatives,
Washington, DC.
Dear Mr. Speaker: 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 fine denier polyester
staple fiber, pursuant to the authority vested in me by the
Constitution and the laws of the United States, including
sections 201 and 203(a)(1) of the Act, and the reasons for
taking these actions.
Sincerely,
Joseph R. Biden, Jr.
To Facilitate Positive Adjustment to Competition From Imports of Fine
Denier Polyester Staple Fiber
----------
By the President of the United States of America
A Proclamation
1. On August 26, 2024, the United States International
Trade Commission (USITC) transmitted to the President a report
(USITC 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 fine denier polyester staple
fiber (fine denier PSF). The product subject to the USITC's
investigation and determination excluded certain fine denier
PSF described in the USITC's Notice of Institution, 89 FR 18435
(March 13, 2024), and listed in subdivision (c)(ii) of Note 32
in the Annex to this proclamation.
2. The USITC reached an affirmative determination under
section 202(b) of the Trade Act (19 U.S.C. 2252(b)) that fine
denier PSF is being imported into the United States in such
increased quantities as to be a substantial cause of serious
injury to the domestic industry producing an article like or
directly competitive with the imported article.
3. Pursuant to section 301(a) of the United States-Mexico-
Canada Agreement Implementation Act (the ``USMCA Implementation
Act'') (19 U.S.C. 4551(a)), the USITC made findings as to
whether imports of Canada and Mexico, considered individually,
account for a substantial share of total imports and contribute
importantly to the serious injury caused by imports. The USITC
made negative findings of substantial share and contribution to
injury with respect to imports of fine denier PSF from Canada
and Mexico, considered individually.
4. Pursuant to statutes implementing certain free trade
agreements to which the United States is a party, the USITC
further found that imports of fine denier PSF that are a
product of Australia, each Dominican Republic-Central America-
United States Free Trade Agreement country (i.e., Costa Rica,
the Dominican Republic, El Salvador, Guatemala, Honduras, and
Nicaragua) (CAFTA-DR countries), Colombia, Jordan, the Republic
of Korea, Panama, Peru, and Singapore, individually, are not a
substantial cause of serious injury or threat thereof.
5. Furthermore, pursuant to section 403 of the Trade and
Tariff Act of 1984 (Public Law 98-573, 98 Stat. 2948, 3016
(1984)) (19 U.S.C. 2112 note), the USITC found that the serious
injury substantially caused by imports to the domestic industry
producing a like or directly competitive article does not
result from the reduction or elimination of any duty provided
for under the United States-Israel Free Trade Agreement. The
USITC also found, pursuant to 19 U.S.C. 2703(e), that the
serious injury substantially caused by imports to the domestic
industry producing a like or directly competitive article does
not result from duty-free treatment provided for under the
Caribbean Basin Economic Recovery Act (CBERA) provisions of the
Caribbean Basin Initiative trade program or the Generalized
System of Preferences (GSP) program.
6. The USITC Commissioners transmitted to the President
their individual recommendations that each of them considered
would address the serious injury to the domestic industry and
be most effective in facilitating the efforts of the domestic
industry to make a positive adjustment to import competition.
7. On September 10, 2024, the United States Trade
Representative (USTR) requested additional information from the
USITC under section 203(a)(5) of the Trade Act (19 U.S.C.
2253(a)(5)). On October 10, 2024, the USITC provided a response
that identified unforeseen developments that led to the
importation of fine denier PSF into the United States in such
increased quantities as to be a substantial cause of serious
injury (USITC Supplemental Report). The USITC Supplemental
Report also reported, inter alia, that increased imports of
fine denier PSF products of all countries other than Australia,
Canada, the CAFTA-DR countries, Colombia, Israel, Jordan, the
Republic of Korea, Mexico, Panama, Peru, and Singapore are a
substantial cause of serious injury to the domestic industry.
8. 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 (19 U.S.C.
2253(a)(2)), the USITC Report, and the USITC Supplemental
Report, I have determined to implement action of a type
described in section 203(a)(3) (19 U.S.C. 2253(a)(3))
(safeguard measure), with regard to the following fine denier
PSF: fine denier PSF, not carded or combed, measuring less than
3.3 decitex (3 denier) in diameter, whether coated or uncoated.
Fine denier PSF is classifiable in the Harmonized Tariff
Schedule of the United States (HTS) in subheading 5503.20.00
and described in statistical reporting number 5503.20.0025 or
9813.00.0520.
9. Pursuant to section 203 of the Trade Act (19 U.S.C.
2253), the action I have determined to take shall be a
safeguard measure in the form of a quantitative restriction on
imports of fine denier PSF described in paragraph 8 of this
proclamation, admitted temporarily free of duty under bond and
entered under subheading 5503.20.00 and described in
statistical reporting number 5503.20.0025 or 9813.00.0520,
imposed for a period of 4 years, with annual reductions in the
within-quota quantities in the second, third, and fourth years.
Admission of certain imported articles free of duty under bond
is commonly known as aTemporary Importation under Bond (TIB).
TIB entries are subject to the conditions appearing in Chapter 98,
Subchapter XIII, of the HTS (19 U.S.C. 1202) as well as regulations
promulgated by U.S. Customs and Border Protection and the Department of
the Treasury.
10. The quantitative restriction of TIB entries described
in paragraph 9 of this proclamation shall be allocated among
all countries except those countries the products of which are
excluded from such quantitative restriction, pursuant to
paragraphs 13 through 16 of this proclamation.
11. This safeguard measure shall apply to imports of all
countries, except as provided in paragraphs 13 through 16 of
this proclamation.
12. I have found, pursuant to section 203(e)(4) of the
Trade Act (19 U.S.C. 2253(e)(4)), that the most recent 3 years
that are representative of imports of fine denier PSF and for
which data are available are 2018 through 2020, because that
period covers the 3 most recent years before the surge in
imports, particularly under TIB entry, from 2021 to 2023.
Setting a quantitative restriction of zero pounds for the first
year of this action is consistent with this representative
period because the USITC Report indicates that there were no
imports of fine denier PSF under TIB entry during 2018 through
2020.
13. This safeguard measure shall not apply to imports of
any product described in paragraph 8 of this proclamation of a
developing country, as listed in subdivision (b)(iii) of Note
32 in the Annex to this proclamation, as long as such a
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 8 of this proclamation of a
developing country that is a World Trade Organization (WTO)
Member results in imports of that product from that developing
country exceeding either of the thresholds described in this
paragraph, I may modify this action to apply to such product of
such country.
14. Pursuant to section 302(a) of the USMCA Implementation
Act (19 U.S.C. 4552(a)), I have determined after considering
the USITC Report and the USITC Supplemental Report that imports
of fine denier PSF that are the product of Canada and Mexico,
considered individually, do not account for a substantial share
of total imports and do not contribute importantly to the
serious injury found by the USITC. Accordingly, pursuant to
section 302(b) of the USMCA Implementation Act (19 U.S.C.
4552(b)), I have excluded fine denier PSF that is the product
of Canada or Mexico from the action I am taking under section
203 of the Trade Act (19 U.S.C. 2253).
15. After considering the USITC Report and the USITC
Supplemental Report, I have also made the following
determinations with regard to fine denier PSF that is the
product of the following trading partners:
(a) I have determined that imports of fine denier PSF that
are the product of Australia are not a substantial cause of the
serious injury found by the USITC, and I have therefore
determined to exclude such imports that are the product of
Australia from the action I am taking under section 203 of the
Trade Act (19 U.S.C. 2253), pursuant to section 331(b) of the
United States-Australia Free Trade Agreement Implementation Act
(Public Law 108-286, 118 Stat. 919, 949 (2004)) (19 U.S.C. 3805
note);
(b) In light of the USITC's finding that imports of fine
denier PSF that are the product of each CAFTA-DR country
individually are not a substantial cause of serious injury or
threat thereof, I have determined to exclude such imports that
are the product of each of the CAFTA-DR countries from the
action I am taking under section 203 of the Trade Act (19
U.S.C. 2253), pursuant to section 331(b) of the Dominican
Republic-Central America-United States Free Trade Agreement
Implementation Act (the ``CAFTA-DR Act'') (Public Law 109-53,
119 Stat. 462, 495 (2005)) (19 U.S.C. 4101(b));
(c) In light of the USITC's finding that imports of fine
denier PSF that are the product of Colombia are not a
substantial cause of serious injury or threat thereof, I have
determined to exclude such imports that are the product of
Colombia from the action I am taking under section 203 of the
Trade Act (19 U.S.C. 2253), pursuant to section 331(b) of the
United States-Colombia Trade Promotion Agreement Implementation
Act (Public Law 112-42, 125 Stat. 462, 493-94 (2011)) (19
U.S.C. 3805 note);
(d) In light of the USITC's finding that the serious injury
substantially caused by imports to the domestic industry
producing a like or directly competitive article does not
result from the reduction or elimination of any duty provided
for under the United States-Israel Free Trade Agreement, I have
determined, as part of the action I am taking under section 203
of the Trade Act (19 U.S.C. 2253), not to suspend the reduction
or elimination of any duty on imports of fine denier PSF that
are the product of Israel, pursuant to section 403 of the Trade
and Tariff Act of 1984 (19 U.S.C. 2112 note);
(e) In light of the USITC's finding that imports of fine
denier PSF that are the product of Panama are not a substantial
cause of serious injury or threat thereof, I have determined to
exclude such imports that are the product of Panama from the
action I am taking under section 203 of the Trade Act (19
U.S.C. 2253), pursuant to section 331(b) of the United States-
Panama Trade Promotion Agreement Implementation Act (Public Law
112-43, 125 Stat. 497, 529 (2011)) (19 U.S.C. 3805 note);
(f) In light of the USITC's finding that imports of fine
denier PSF that are the product of Peru are not a substantial
cause of serious injury or threat thereof, I have determined to
exclude such imports that are the product of Peru from the
action I am taking under section 203 of the Trade Act (19
U.S.C. 2553), pursuant to section 331(b) of the United States-
Peru Trade Promotion Agreement Implementation Act (Public Law
110-138, 121 Stat. 1455, 1486 (2007)) (19 U.S.C. 3805 note);
(g) I have determined that imports of fine denier PSF that
are the product of Singapore are not a substantial cause of the
serious injury found by the USITC, and I have therefore
determined to exclude such imports that are the product of
Singapore from the action I am taking under section 203 of the
Trade Act (19 U.S.C. 2253), pursuant to section 331(b) of the
United States-Singapore Free Trade Agreement Implementation Act
(Public Law 108-78, 117 Stat. 948, 970 (2003)) (19 U.S.C. 3805
note); and
(h) In light of the USITC's finding that the serious injury
substantially caused by imports to the domestic industry
producing a like or directly competitive article does not
result from duty-free treatment provided for under the CBERA
provisions of the Caribbean Basin Initiative trade program, I
have determined, as part of the action I am taking under
section 203 of the Trade Act (19 U.S.C. 2253), not to suspend
duty-free treatment pursuant to subsection 1 of 19 U.S.C.
2703(e), with respect to imports of fine denier PSF that are
the product of any CBERA beneficiary country or territory.
16. Although the USITC found that imports of fine denier
PSF that are a product of the Republic of Korea are not a
substantial cause of serious injury or threat thereof, I have
determined to include imports of fine denier PSF that are the
product of the Republic of Korea in the action I am taking
under section 203 of the Trade Act (19 U.S.C. 2253).
Specifically, consistent with the recommendations of certain
USITC Commissioners, I have found that excluding imports of the
Republic of Korea from the quantitative restriction could
significantly undermine this action.
17. While the USITC recommended excluding Jordan from this
action under the United States-Jordan Free Trade Area
Implementation Act (Public Law 107-43, 115 Stat. 243 (2001))
(19 U.S.C. 2112 note), I have instead determined to exclude
such imports that are the product of Jordan as imports of a
developing country from the action I am taking, pursuant to
paragraph 13 of this proclamation.
18. While the USITC Commissioners recommended that I impose
a tariff-rate quota on fine denier PSF imports, I have
determined not to do so. The USITC Report indicates that TIB
entries of fine denier PSF contributed significantly to the
serious injury to the domestic industry. In addition, such TIB
entries are undermining the effectiveness of existing trade
actions on fine denier PSF. Therefore, I have decided to tailor
this safeguard remedy to TIB entries of fine denier PSF.
Furthermore, I have determined not to impose a tariff-rate
quota on imports of fine denier PSF in the interest of
balancing thecompeting interests of domestic fine denier PSF
manufacturers and the impact of the safeguard remedy on downstream
United States producers, including manufacturers of textiles, defense
products, and consumer products, that rely on fine denier PSF.
19. Pursuant to section 203(a)(1)(A) of the Trade Act (19
U.S.C. 2253(a)(1)(A)), I have determined that this safeguard
measure 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 domestic industry to make a positive adjustment
to import competition and provide greater economic and social
benefits than costs, or if I determine that the conditions
under section 204(b)(1) of the Trade Act (19 U.S.C. 2254(b)(1))
are met, I shall reduce, modify, or terminate the action
established in this proclamation accordingly. In addition, if I
determine within 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 it is necessary to reduce, modify, or
terminate the safeguard measure, I shall proclaim the
corresponding reduction, modification, or termination of the
safeguard measure within 40 days of the date of this
proclamation.
20. Section 604 of the Trade Act (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, JOSEPH R. BIDEN JR., President of the
United States of America, by the authority vested in me by the
Constitution and the laws of the United States, including
sections 203 and 604 of the Trade Act (19 U.S.C. 2253 and
2483), section 302 of the USMCA Implementation Act (19 U.S.C.
4552), section 331(b) of the United States-Australia Free Trade
Agreement Implementation Act (19 U.S.C. 3805 note), section
331(b) of the CAFTA-DR Act (19 U.S.C. 4101(b)), section 331(b)
of the United States-Colombia Free Trade Promotion Agreement
Implementation Act (19 U.S.C. 3805 note), section 403 of the
Trade and Tariff Act of 1984 (19 U.S.C. 2112 note), section
331(b) of the United States-Panama Trade Promotion Agreement
Implementation Act (19 U.S.C. 3805 note), section 331(b) of the
United States-Peru Trade Promotion Agreement Implementation Act
(19 U.S.C. 3805 note), section 331(b) of the United States-
Singapore Free Trade Agreement Implementation Act (19 U.S.C.
3805 note), and 19 U.S.C. 2703(e), do proclaim that:
(1) In order to establish a quantitative restriction on
imports of fine denier PSF described in paragraph 9 of this
proclamation, subchapter III of chapter 99 of the HTS is
modified as provided in the Annex to this proclamation.
(2) The modifications to the HTS made by this proclamation,
included in the Annex to this proclamation, shall be effective
with respect to goods admitted temporarily free of duty under
bond which are entered under HTS statistical reporting number
9813.00.0520, on or after 12:01 a.m. eastern standard time 15
days after the date of this proclamation, and shall continue in
effect as provided in the Annex to this proclamation, unless
such action is earlier expressly reduced, modified, or
terminated.
(3) Imports of fine denier PSF that are the product of
Australia, Canada, the CAFTA-DR countries, CHERA beneficiary
countries and territories, Colombia, Israel, Mexico, Panama,
Peru, or Singapore shall be excluded from the safeguard measure
established in this proclamation, and such imports shall not be
counted toward the quantitative restriction.
(4) Except as provided in clause (5) below, imports of fine
denier PSF that are the product of developing countries, as
listed in subdivision (b)(iii) of Note 32 in the Annex to this
proclamation, shall be excluded from the safeguard measure
established in this proclamation, and such imports shall not be
counted toward the quantitative restriction.
(5) If, after the safeguard measure established in this
proclamation takes effect, I determine that:
(a) the share of total imports of the product of a country
listed in subdivision (b)(iii) of Note 32 in the Annex to this
proclamation, based on imports during a recent representative
period, exceeds 3 percent;
(b) 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; or
(c) a country listed in subdivision (b)(iii) of Note 32 in
the Annex to this proclamation is no longer a developing
country for purposes of this proclamation; then I may revise
subdivision (b)(iii) of Note 32 in the Annex to this
proclamation to remove the relevant country from the list or
suspend operation of that subdivision, as appropriate.
(6) One year from the termination of the safeguard measure
established in this proclamation, the United States note and
tariff provisions established in the Annex to this proclamation
shall be deleted from the HTS.
(7) Any provision of previous proclamations and Executive
Orders that is inconsistent with the action taken in this
proclamation is superseded to the extent of such inconsistency.
IN WITNESS WHEREOF, I have hereunto set my hand this eighth
day of November, in the year of our Lord two thousand twenty-
four, and of the Independence of the United States of America
the two hundred and forty-ninth.
Joseph R. Biden, Jr.
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