[Federal Register Volume 67, Number 45 (Thursday, March 7, 2002)]
[Presidential Documents]
[Pages 10553-10592]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-5711]



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Part V





The President





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Proclamation 7529--To Facilitate Positive Adjustment to Competition 
From Imports of Certain Steel Products



Memorandum of March 5, 2002--Action Under Section 203 of the Trade Act 
of 1974 Concerning Certain Steel Products
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                         Presidential Documents 
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  Federal Register / Vol. 67, No. 45 / Thursday, March 7, 2002 / 
Presidential Documents  

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 Title 3--
 The President

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                Proclamation 7529 of 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 flat- rolled 
                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)),

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                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 steel 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, and stainless 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 9903.73.04 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 to 
                this proclamation were excluded from the determinations 
                of the ITC

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                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 each 
                of 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 a 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

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                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 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 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 from the pertinent safeguard 
                measure established by this proclamation.

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                    (6) In March of each year in which any safeguard 
                measure established by this proclamation remains in 
                effect, the USTR is 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 20, 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.

                    (Presidential Sig.)B

                Billing code 3195-01-P

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[FR Doc. 02-5711
Filed 03-06-02; 11:04 am]
Billing code 3190-01-C