[Federal Register Volume 64, Number 105 (Wednesday, June 2, 1999)]
[Presidential Documents]
[Pages 29773-29775]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-14150]



[[Page 29771]]

_______________________________________________________________________

Part V





The President





_______________________________________________________________________



Proclamation 7202--To Eliminate Circumvention of the Quantitative 
Limitations Applicable to Imports of Wheat Gluten
 
 
                         Presidential Documents 
 
 

  Federal Register / Vol. 64, No. 105 / Wednesday, June 2, 1999 / 
Presidential Documents  

 ___________________________________________________________________

 Title 3--
 The President

[[Page 29773]]

                Proclamation 7202 of May 28, 1999

                
To Eliminate Circumvention of the Quantitative 
                Limitations Applicable to Imports of Wheat Gluten

                By the President of the United States of America

                A Proclamation

                1. On March 18, 1998, the United States International 
                Trade Commission (USITC) transmitted to the President a 
                unanimous affirmative determination in 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 wheat gluten provided for in 
                subheadings 1109.00.10 and 1109.00.90 of the Harmonized 
                Tariff Schedule of the United States (HTS). Under 
                section 202 of the Trade Act, the USITC determined that 
                such wheat gluten 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 a like or directly competitive 
                article. Further, pursuant to section 311(a) of the 
                North American Free Trade Agreement Implementation Act 
                (NAFTA Implementation Act) (19 U.S.C. 3371(a)), the 
                USITC made negative findings with respect to imports of 
                wheat gluten from Canada and Mexico. Pursuant to 
                section 202(e) of the Trade Act (19 U.S.C. 2253(e)), 
                the USITC also transmitted to the President its 
                recommendation on the action that 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.

                2. On May 30, 1998, I issued Proclamation 7103, which 
                implemented action of a type described in section 
                203(a)(3) of the Trade Act (19 U.S.C. 2253(a)(3)). 
                Pursuant to section 203 of the Trade Act (19 U.S.C. 
                2253), and taking into account the considerations 
                specified in section 203(a)(2) of the Trade Act, I 
                determined to establish quantitative limitations on 
                imports of wheat gluten, provided for in HTS 
                subheadings 1109.00.10 and 1109.00.90, imposed for a 
                period of 3 years plus 1 day, with annual increases in 
                such quota limits of 6 percent in the second year and 
                in the third year. These limitations were to apply to 
                imports from all countries, and the quota quantity was 
                to be allocated among such countries, except for 
                products of Canada, Mexico, Israel, beneficiary 
                countries under the Caribbean Basin Economic Recovery 
                Act and the Andean Trade Preference Act, and other 
                developing countries that accounted for a minor share 
                of wheat gluten imports that I determined to exclude 
                from any restriction. Pursuant to section 203(a)(1)(A) 
                of the Trade Act (19 U.S.C. 2253(a)(1)(A)), I further 
                determined that these actions would facilitate efforts 
                by the domestic industry to make a positive adjustment 
                to import competition and provide greater economic and 
                social benefits than costs.

                3. Despite the quantitative limitations on imports of 
                wheat gluten, during the first restraint period 
                quantities of wheat gluten the product of the European 
                Community have been entered in excess of the allocated 
                amount.

                4. Section 204(b)(2) of the Trade Act (19 U.S.C. 
                2254(b)(2)) authorizes the President to take such 
                additional action under section 203 of the Trade Act as 
                may be necessary to eliminate any circumvention of any 
                action previously taken under such section. Pursuant to 
                section 204(b)(2) of the Trade Act, I have determined 
                it is appropriate and feasible to take additional 
                action pursuant to section 203(a)(3) of the Trade Act. 
                Such action shall take the form of a reduction in the 
                European Community's 1999/2000 wheat

[[Page 29774]]

                gluten quota allotment in the amount of 5,204,000 kg, 
                which represents the amount of wheat gluten that 
                entered the United States in excess of the European 
                Community's 1998 quota allocation. I determine this 
                action is necessary to eliminate circumvention of the 
                safeguard action previously undertaken in Proclamation 
                7103.

                5. 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, WILLIAM J. CLINTON, 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, 204, and 604 of the Trade Act, do proclaim that:

                    (1) The allocation of the quota quantity for wheat 
                gluten for the restraint period from June 1, 1999, 
                through May 31, 2000, inclusive, that was accorded to 
                wheat gluten the product of the European Community by 
                the Annex to Presidential Proclamation 7103 of May 30, 
                1998, as set forth in subheading 9903.11.06 of 
                subchapter III, chapter 99 of the HTS, is modified by 
                striking the allocated quota quantity set forth for the 
                European Community ``25,983,000 kg'' from such 
                subheading and by inserting in lieu thereof the new 
                allocated quota quantity for the European Community 
                ``20,581,000 kg''.
                    (2) In order to ensure that any imports of wheat 
                gluten the product of any country, or the product of 
                the European Community, having an allocated share of 
                the quantitative restraints set forth in subheadings 
                9903.11.05 through 9903.11.07, inclusive, of the HTS 
                and superior text thereto, are limited to the specified 
                share during a quota period, the HTS is modified by 
                adding at the end of U.S. Note 7 to subchapter III of 
                chapter 99 the following new paragraph:

                    ``Whenever a quantity is allocated to a country, to 
                    `other countries' or to the European Community 
                    under such subheadings, and the quota quantity 
                    specified for such country or countries or for the 
                    European Community has been entered for the 
                    specified restraint period, any shipments of wheat 
                    gluten the product of such country or countries or 
                    of the European Community entered in excess of such 
                    allocated quota quantity shall be charged to the 
                    allocation for such country or countries or for the 
                    European Community for the subsequent restraint 
                    period. If the allocated quantity for a country or 
                    countries or for the European Community under 
                    subheading 9903.11.07, including any quantity 
                    carried over from the restraint periods provided 
                    for in subheadings 9903.11.05 and 9903.11.06 and 
                    charged against the appropriate allocation under 
                    subheading 9903.11.07, has been entered, any 
                    imports in excess of the allocated quota quantity 
                    for a country or countries or for the European 
                    Community shall be entered into bonded warehouse or 
                    shall be exported, and shall not be entered into 
                    the customs territory of the United States until 
                    12:00 a.m. e.d.t. June 1, 2001. The Secretary of 
                    the Treasury is authorized to take any necessary 
                    action in order to ensure that no shipments in 
                    excess of the allocation for a country or countries 
                    or for the European Community for the period from 
                    June 1, 2000 through June 1, 2001, inclusive, is 
                    entered into the customs territory of the United 
                    States.''

                    (3) Subheading 9903.11.06 is modified by inserting 
                after ``Other'' the word ``countries''.
                    (4) Any provision of any previous proclamation or 
                Executive order that is inconsistent with the actions 
                taken in this proclamation is superseded to the extent 
                of such inconsistency.

[[Page 29775]]

                    (5) The modifications made in this proclamation 
                shall be effective with respect to goods entered, or 
                withdrawn from warehouse for consumption, on or after 
                12:01 a.m. e.d.t. on June 1, 1999, and shall continue 
                in effect as provided until 11:59 p.m. e.d.t. on June 
                1, 2001, unless such actions are earlier expressly 
                modified or terminated.

                IN WITNESS WHEREOF, I have hereunto set my hand this 
                twenty-eighth day of May, in the year of our Lord 
                nineteen hundred and ninety-nine, and of the 
                Independence of the United States of America the two 
                hundred and twenty-third.

                    (Presidential Sig.)

[FR Doc. 99-14150
Filed 6-1-99; 10:59 am]
Billing code 3195-01-P