[Federal Register Volume 67, Number 45 (Thursday, March 7, 2002)]
[Presidential Documents]
[Pages 10593-10597]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-5712]
Presidential Documents
Federal Register / Vol. 67, No. 45 / Thursday, March 7, 2002 /
Presidential Documents
[[Page 10593]]
Memorandum of March 5, 2002
Action Under Section 203 of the Trade Act of 1974
Concerning Certain Steel Products
Memorandum for the Secretary of the Treasury[,] the
Secretary of Commerce[, and the] United States Trade
Representative
On December 19, 2001, the United States International
Trade Commission (ITC) submitted a report to me that
contained determinations pursuant to section 202 of the
Trade Act of 1974, as amended (the ``Trade Act''), that
(a) certain carbon flat rolled steel, including carbon
and alloy steel slabs, plate (including cut-to-length
plate and clad plate), hot-rolled steel (including
plate in coils), cold-rolled steel (other than grain-
oriented electrical steel), and corrosion-resistant and
other 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
are being imported into the United States in such
increased quantities as to be a substantial cause of
serious injury, or the threat thereof, to the domestic
industries producing like or directly competitive
articles. 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''); (j)
stainless steel wire; (k) tool steel, all forms; and
(l) stainless steel flanges and fittings (``stainless
steel fittings'') 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. The ITC provided
detailed definitions of the products included in
categories (a) through (l) 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).
The report of the ITC also contained findings pursuant
to section 311(a) of the North American Free Trade
Agreement Implementation Act (the ``NAFTA
Implementation Act'') 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 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 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. By February 4, 2002, the ITC provided
additional information in response to a request under
section 203(a)(5) of the Trade Act (``supplemental
report'') made by the United States Trade
Representative (the ``USTR'') on January 3, 2002.
[[Page 10594]]
Having considered the determinations of both groups of
commissioners with regard to tin mill products, tool
steel, stainless steel wire, and stainless steel
fittings, I have determined, pursuant to section
330(d)(1) of the Tariff Act of 1930, as amended, to
consider the determinations of the groups of
commissioners voting in the affirmative with regard to
tin mill products and stainless steel wire to be the
determination of the ITC, and the determinations of the
groups of commissioners voting in the negative with
regard to tool steel and stainless steel fittings to be
the determination of the ITC.
By Proclamation signed today (the ``Proclamation'')
and after considering all relevant aspects of the
investigation, including the factors set forth in
section 203(a)(2) of the Trade Act and the supplemental
report, I have implemented actions of a type described
in section 203(a)(3). I have determined that the most
appropriate actions are safeguard measures in the form
of 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 defined in paragraph 7 of the
Proclamation, and in the form of a tariff rate quota
(TRQ) on imports of slabs, with an increase in
currently scheduled rates of duties for imports over
the TRQ limits. I have implemented these safeguard
measures for a period of 3 years plus 1 day.
Specifically, I have established the following
safeguard measures:
(a) certain flat steel: with regard to slabs, a TRQ of
4.90 million metric tons in the first year of the
measure, 5.35 million metric tons in the second year,
and 5.81 million metric tons in the third year, with no
increase in duties for imports below the within-quota
level and an increase in duties of 30% ad valorem for
imports above the within-quota level in the first year
of the measure, 24% in the second year, and 18% in the
third year; and with regard to certain flat steel,
other than slab (including plate, hot-rolled steel,
cold-rolled steel and coated steel), an increase in
duties of 30% ad valorem in the first year, 24% in the
second year, and 18% in the third year;
(b) hot-rolled bar: an increase in duties of 30% ad
valorem in the first year of the measure, 24% in the
second year, and 18% in the third year;
(c) cold-finished bar: a increase in duties of 30% ad
valorem in the first year of the measure, 24% in the
second year, and 18% in the third year;
(d) rebar: an increase in duties of 15% ad valorem in
the first year of the measure, 12% in the second year,
and 9% in the third year;
(e) certain welded tubular products: an increase in
duties of 15% ad valorem in the first year of the
measure, 12% in the second year, and 9% in the third
year;
(f) carbon and alloy fittings: an increase in duties
of 13% ad valorem in the first year of the measure, 10%
in the second year, and 7% in the third year;
(g) stainless steel bar: an increase in duties of 15%
ad valorem in the first year of the measure, 12% in the
second year, and 9% in the third year;
(h) stainless steel rod: an increase in duties of 15%
ad valorem in the first year of the measure, 12% in the
second year, and 9% in the third year;
(i) tin mill products: an increase in duties of 30% ad
valorem in the first year of the measure, 24% in the
second year, and 18% in the third year; and
(j) stainless steel wire: an increase in duties of 8%
ad valorem in the first year of the measure, 7% in the
second year, and 6% in the third year.
[[Page 10595]]
Pursuant to section 312(a) of the NAFTA Implementation
Act, after consideration of the report and supplemental
reports of the ITC, I further determine that imports of
certain flat steel, hot-rolled bar, cold-finished bar,
rebar, certain tubular products, carbon and alloy
fittings, stainless steel bar, stainless steel rod, tin
mill products, and stainless steel wire that are
products of Canada and Mexico either do not account for
a substantial share of total imports of these products,
or are not contributing importantly to serious injury
or the threat of serious injury. Therefore, pursuant to
section 312(b) of the NAFTA Implementation Act, the
safeguard measure will not apply to imports of certain
flat steel, hot-rolled bar, cold-finished bar, rebar,
certain tubular products, carbon and alloy fittings,
stainless steel bar, stainless steel rod, tin mill
products, and stainless steel wire that are the product
of Canada or Mexico. Similarly, the safeguard measures
will not apply to imports of these products that are
the product of Israel or Jordan.
The safeguard measures also will not apply to imports
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, or stainless steel wire that
are the product of a developing country that is a
member of the World Trade Organization (WTO), as long
as that country's share of imports into the United
States of the product, based on a recent representative
period, does not exceed 3 percent, provided that all
such developing country WTO members collectively
account for not more than 9 percent of total imports of
that product. For purposes of the safeguard measures
established under the Proclamation, I determine that
the beneficiary countries under the Generalized System
of Preferences are developing countries. Subdivision
(d)(i) of U.S. Note 11 to subchapter III of chapter 99
of the Harmonized Tariff Schedule of the United States
(Note 11) in the Annex to the Proclamation identifies
those developing countries that are WTO members, and
subdivision (d)(ii) identifies the products of such
countries to which the safeguard measures shall not
apply.
I instruct the USTR to review data on imports of
products listed in paragraph 7 of the Proclamation from
countries listed in subdivision (d)(i) of Note 11 on a
quarterly basis. If imports of such a product from such
a country increase by a material amount, I instruct the
USTR to initiate consultations with the country
regarding the circumstances under which the increase
occurred and whether the country plans to take action
to reduce imports to historical levels. If, on the
basis of the information exchanged during
consultations, data on imports, domestic steel demand,
growth in the U.S. economy, shifts in other countries'
trade patterns, and any other relevant factors, the
USTR determines that the increase in imports of such
product from such country undermines the effectiveness
of the pertinent safeguard measure, he is authorized,
upon publication of a notice of such determination in
the Federal Register, to modify subdivision (d)(ii) of
Note 11 in the Annex to the Proclamation to include
such product from such country. I also authorize the
USTR, upon publication of a notice in the Federal
Register, to change the list of developing countries to
which the safeguard measures do not apply.
The steel products listed in clauses (i) through (ix)
of subdivision (b) of Note 11 in the Annex to the
Proclamation were excluded from the determinations of
the ITC described in paragraph 2 of that Proclamation,
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
the Proclamation. The Trade Policy Staff Committee
(TPSC) is currently evaluating requests, submitted in
response to 66 Fed. Reg. 54321, 54322-54323 (October
26, 2001), that particular products be excluded from
any safeguard measure with regard to certain steel
products. I instruct the USTR to determine whether
these particular products should be excluded and, if
so, within 120 days of the date of the Proclamation, to
publish in the Federal Register a notice to modify
subchapter III of chapter 99 to exclude them from the
[[Page 10596]]
safeguard measures. In making this determination, the
USTR shall consider any advice rendered by the TPSC.
Similarly, I instruct the USTR, after receiving advice
from the TPSC, to determine whether any particular
products should be added to the list of those excluded
from the safeguard measures and, if so, to publish a
notice in the Federal Register in March of any year in
which he receives such a recommendation to modify
subchapter III of chapter 99 to exclude such particular
products from the measures. I further instruct the
USTR, no later than 90 days from today, to publish in
the Federal Register a notice of the procedures by
which interested persons may request the TPSC to
recommend whether to exclude a particular product.
I also instruct the USTR, prior to the effective date
of the safeguard measures established in the
Proclamation, to conduct consultations under Article
12.3 of the Agreement on Safeguards with any WTO member
having a substantial interest as an exporter of a
product subject to such safeguard measures, provided
that the WTO member requests such consultations in a
timely fashion. I instruct the USTR to report to me on
the results of such consultations. I instruct the
Secretary of the Treasury, pursuant to section 505(a)
of the Tariff Act of 1930 (19 U.S.C. 1505(a)), to
prescribe by regulation a date no later than 45 days
after today at which estimated duties for merchandise
entered, or withdrawn from warehouse for consumption,
on or after 12:01 a.m., EST, March 20, 2002, and up to
the 30th day after today, shall be deposited.
I instruct the Secretary of the Treasury and the
Secretary of Commerce to establish a system of import
licensing to facilitate the monitoring of imports of
certain steel products. Pursuant to the authority
granted me by section 203(g) of the Trade Act to
provide for the efficient and fair administration of
all actions taken for the purpose of providing import
relief under section 203, I further instruct the
Secretary of Commerce, within 120 days of the effective
date of the safeguard measures established by the
Proclamation, to publish regulations in the Federal
Register establishing such a system of import
licensing.
I have determined that the safeguard measures will
facilitate efforts by the domestic industries to make a
positive adjustment to import competition and will
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 safeguard measures. In making this
determination, I shall consider the pertinent factors
set out in section 203(a)(2) of the Trade Act and, in
particular, changes in capital and labor productivity
in the domestic industries; actual and planned
permanent closures of inefficient steel production
facilities in the United States and in other countries;
consolidation of United States steel producers; capital
expenditures in the domestic industries; prices for
certain steel products in the United States; and the
overall effect that maintaining the measure will have
on consuming industries, workers, and the United States
economy as a whole.
[[Page 10597]]
The United States Trade Representative is authorized
and directed to publish this memorandum in the Federal
Register.
(Presidential Sig.)B
THE WHITE HOUSE,
Washington, March 5, 2002.
[FR Doc. 02-5712
Filed 3-6-02; 11:04 am]
Billing code 3190-01-M