[Federal Register Volume 82, Number 3 (Thursday, January 5, 2017)]
[Rules and Regulations]
[Pages 1183-1185]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31667]
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DEPARTMENT OF COMMERCE
International Trade Administration
19 CFR Part 360
RIN 0625-AB09
Steel Import Monitoring and Analysis System
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
ACTION: Final rule.
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SUMMARY: The Department of Commerce (the Department) is extending the
Steel Import Monitoring and Analysis (SIMA) system until March 21,
2022. The purpose of the SIMA system is to provide to the public
statistical data on steel imports entering the United States roughly
five weeks earlier than it would otherwise be available. Aggregate data
collected from the steel import licenses are made available to the
public on a weekly basis following review by the Department.
DATES: Effective March 21, 2017.
FOR FURTHER INFORMATION CONTACT: For information about the SIMA system,
please contact Julie Al-Saadawi (202) 482-1930 or Michael Rollin (202)
482-4978.
SUPPLEMENTARY INFORMATION:
Background
The SIMA system has operated under its current authority since
March 21, 2005. Prior to that date, authority for steel import
licensing and monitoring was derived from Proclamation 7529 of March 5,
2002 (67 FR 10553). Pursuant to sections 201 and 203 of the 1974 Trade
Act, 19 U.S.C. 2251, 2253, Proclamation 7529 implemented safeguard
measures with respect to certain imported steel products, placing
temporary tariffs on these steel imports and providing the steel
industry time to restructure. The monitoring system outlined in
Proclamation 7529 required all importers of steel products to obtain a
license from the Department prior to completing their customs entry
summary documentation. This provided a monitoring tool to ensure that
the effectiveness of the steel safeguard measures was not undermined by
large quantities of imports originating from countries that were
excluded from the tariffs.
In Proclamation 7741 of December 4, 2003 (68 FR 68483), the
President terminated the steel safeguard measures, but directed the
Secretary of Commerce to continue the monitoring system until the
earlier of March 21, 2005, or such time as the Secretary of Commerce
established a replacement program. On December 9, 2003, the Department
published a notice stating that the system would continue in effect as
described in Proclamation 7741 until March 21, 2005 (68 FR 68594). On
August 25, 2004, the Department published an advance notice of proposed
rulemaking soliciting comments from the public on whether to continue
the monitoring system beyond March 21, 2005 (69 FR 52211). The
Department changed the program's name from the Steel Import Licensing
and Surge Monitoring program to the Steel Import Monitoring and
Analysis (SIMA) system. The name change was notified in the publication
of the August 2004 advance notice (69 FR 52211). On March 11, 2005, the
Department published an interim final rule responding to the comments
received from the public and implementing a slightly expanded version
of SIMA until March 21, 2009. That interim final rule was followed by
the publication of the final rule on December 5, 2005 (70 FR 72373).
On December 12, 2008, a proposed rule was published in the Federal
Register (73 FR 75624) seeking an extension of the SIMA system through
March 21, 2013 and asking for comments from the public. The Department
received twelve submissions, all of which expressed support for the
extension. On March 18,
[[Page 1184]]
2009, the Department issued the final rule (74 FR 11474) to extend the
application of the SIMA system until March 21, 2013. On November 13,
2012 (77 FR 67593), the Department published a proposed rule seeking
comments on an extension of the SIMA system through March 21, 2017. The
Department received three submissions, all of which expressed support
for the extension. The Department issued the final rule to extend the
application of the SIMA system until March 21, 2017 (78 FR 11090). On
October 13, 2016, the Department published a proposed rule seeking
comments on an extension of the SIMA system through March 21, 2022 (81
FR 70650). The Department received two submissions, both of which
expressed support for the extension. The Department is issuing this
final rule to extend the application of the SIMA system until March 21,
2022. The sole change included in this final rule was extending the
program's lifespan to five years (the program's previous lifespan was
four years--at which time an extension of the program must be
proposed).
The purpose of the SIMA system is to provide steel producers, steel
consumers, importers, and the general public with accurate and timely
information on anticipated imports of certain steel products. Import
licenses, obtained through the Internet-based SIMA licensing system,
are required for U.S. imports of basic steel mill products. Aggregate
import data obtained from the licenses are updated weekly and posted on
the SIMA Web site monitor. Details of the current system can be found
at http://enforcement.trade.gov/steel/license/.
Response to Comments
Submissions received during the public comment period established
in the proposed rule have been considered in preparing this final rule.
Two submissions were received, one from a coalition of nine steel trade
groups (referred to as the ``industry''), and one from a large steel-
producing company in the United States, AK Steel Corporation. Both of
the submissions supported the five-year extension and agreed that the
system is a critical tool that helps the industry closely monitor steel
imports. The comments are summarized below. The two submissions
received are posted on the Federal rulemaking portal at
www.Regulations.gov as well as on the SIMA Web site at http://enforcement.trade.gov/steel/license/.
Comment 1: Commenters strongly support the extension of the SIMA
system for an additional five years. They state that given the current
global overcapacity in steel that is fueling surges in steel imports,
the SIMA system gives the public access to the timeliest information
possible regarding import patterns and changes, particularly increases
in volumes. They also view the system as an important and transparent
tool to support rational decision-making by all interested parties--
steel producers, steel consumers, importers and U.S. government
officials.
Response: The Department agrees that the SIMA system provides the
public valuable and timely information on steel mill imports. The
Department also agrees that making aggregate import volume and pricing
data drawn from the licenses publicly available provides all interested
stakeholders with a more informed understanding of changing market
conditions in a transparent manner.
Comment 2: Commenters state that there is no significant burden on
the steel importing community to comply with the licensing requirements
of the SIMA system, and that this has been confirmed over the last 12
years in its current format, which remains unchanged by the proposed
rule.
Response: The Department agrees that there is no significant burden
on steel importers arising out of SIMA system licensing requirements.
The web-based licensing system is automatic and free of charge. The
Department estimates that it continues to take no longer than ten
minutes to complete the automated license form, and for most
applicants, the time spent is much less.
Comment 3: Commenters suggest that the Department make the SIMA
system permanent rather than extend it for another five years. They
state that the system has proven its effectiveness as an important
analytical tool for both steel producers and consumers.
Response: Broad authority to collect information on imports is
granted to the Secretary of Commerce and delegated to the Director of
the Bureau of the Census. When the original safeguard authority for the
SIMA system granted by the President expired in March 2005, the system
was continued pursuant to this Department of Commerce information
collection authority (13 U.S.C. 301(a) and 302). For purposes of
administering the SIMA system, this authority was temporarily
transferred from the Director of the Census Bureau to the Under
Secretary for International Trade for four years. One of the conditions
of the temporary transfer of authority to the Under Secretary for
International Trade was that any future periodic extension of the SIMA
system be notified to the Secretary and subject to review. Therefore,
establishment of a permanent system is not possible under current
authority.
For the reasons discussed above, the proposed rule (19 CFR part
360) is made final without changes.
Classification
Executive Order 12866
This rule has been determined to be not significant for purposes of
Executive Order 12866.
Executive Order 13132
This rule does not contain policies with federalism implications as
that term is defined in Executive Order 13132.
Regulatory Flexibility Act.
The Chief Counsel for Regulation of the Department of Commerce
certified to the Chief Counsel for Advocacy of the Small Business
Administration at the proposed rule stage, that this rule, if adopted,
would not have a significant economic impact on a substantial number of
small entities as that term is defined in the Regulatory Flexibility
Act, 5 U.S.C. 601 et seq. The factual basis for the certification is
found in the proposed rule and is not repeated here. No comments were
received on the certification or the economic impacts of this action.
As a result, no final regulatory flexibility analysis is required and
none was prepared.
Paperwork Reduction Act
This final rule contains collection-of-information requirements
subject to review and approval by the Office of Management and Budget
(OMB) under the Paperwork Reduction Act (PRA). These requirements have
been approved by OMB (OMB No. 0625-0245; Expiration Date: 1/31/2018).
Public reporting for this collection of information is estimated to be
less than ten minutes per response, including the time for reviewing
instructions and completing and reviewing the collection of
information. All responses to this collection of information are
voluntary, and will be provided confidentially to the extent allowed by
law.
Notwithstanding any other provision of law, no person is required
to respond to, nor shall any person be subject to a penalty for failure
to comply with, a collection of information subject to the Paperwork
Reduction Act unless that collection displays a currently valid OMB
Control Number.
List of Subjects in 19 CFR Part 360
Administrative practice and procedure, Business and industry,
[[Page 1185]]
Imports, Reporting and recordkeeping requirements, Steel.
Dated: December 23, 2016.
Paul Piquado,
Assistant Secretary for Enforcement & Compliance.
For reasons discussed in the preamble, 19 CFR part 360 is amended
as follows:
PART 360--STEEL IMPORT MONITORING AND ANALYSIS SYSTEM
0
1. The authority citation for part 360 continues to read as follows:
Authority: 13 U.S.C. 301(a) and 302.
0
2. Section 360.105 is revised to read as follows:
Sec. 360.105 Duration of the steel import licensing requirement.
The licensing program will be in effect through March 21, 2022, but
may be extended upon review and notification in the Federal Register
prior to this expiration date. Licenses will be required on all subject
imports entered during this period, even if the entry summary documents
are not filed until after the expiration of this program. The licenses
will be valid for 10 business days after the expiration of this program
to allow for the final filing of required Customs documentation.
[FR Doc. 2016-31667 Filed 1-4-17; 8:45 am]
BILLING CODE 3510-DS-P