[Federal Register Volume 83, Number 88 (Monday, May 7, 2018)]
[Presidential Documents]
[Pages 20683-20705]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-09841]


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  Federal Register / Vol. 83 , No. 88 / Monday, May 7, 2018 / 
Presidential Documents  

[[Page 20683]]


                Proclamation 9740 of April 30, 2018

                
Adjusting Imports of Steel Into the United States

                By the President of the United States of America

                A Proclamation

                1. On January 11, 2018, the Secretary of Commerce 
                (Secretary) transmitted to me a report on his 
                investigation into the effect of imports of steel mill 
                articles on the national security of the United States 
                under section 232 of the Trade Expansion Act of 1962, 
                as amended (19 U.S.C. 1862).

                2. In Proclamation 9705 of March 8, 2018 (Adjusting 
                Imports of Steel Into the United States), I concurred 
                in the Secretary's finding that steel mill articles are 
                being imported into the United States in such 
                quantities and under such circumstances as to threaten 
                to impair the national security of the United States, 
                and decided to adjust the imports of steel mill 
                articles, as defined in clause 1 of Proclamation 9705, 
                as amended by clause 8 of Proclamation 9711 of March 
                22, 2018 (Adjusting Imports of Steel Into the United 
                States) (steel articles), by imposing a 25 percent ad 
                valorem tariff on such articles imported from all 
                countries except Canada and Mexico. I further stated 
                that any country with which we have a security 
                relationship is welcome to discuss with the United 
                States alternative ways to address the threatened 
                impairment of the national security caused by imports 
                from that country, and noted that, should the United 
                States and any such country arrive at a satisfactory 
                alternative means to address the threat to the national 
                security such that I determine that imports from that 
                country no longer threaten to impair the national 
                security, I may remove or modify the restriction on 
                steel articles imports from that country and, if 
                necessary, adjust the tariff as it applies to other 
                countries, as the national security interests of the 
                United States require.

                3. In Proclamation 9711, I noted the continuing 
                discussions with the Argentine Republic (Argentina), 
                the Commonwealth of Australia (Australia), the 
                Federative Republic of Brazil (Brazil), Canada, Mexico, 
                the Republic of Korea (South Korea), and the European 
                Union (EU) on behalf of its member countries, on 
                satisfactory alternative means to address the 
                threatened impairment to the national security by 
                imports of steel articles from those countries. 
                Recognizing that each of these countries and the EU has 
                an important security relationship with the United 
                States, I determined that the necessary and appropriate 
                means to address the threat to national security posed 
                by imports of steel articles from these countries was 
                to continue the ongoing discussions and to exempt steel 
                articles imports from these countries from the tariff 
                proclaimed in Proclamation 9705 until May 1, 2018.

                4. The United States has successfully concluded 
                discussions with South Korea on satisfactory 
                alternative means to address the threatened impairment 
                to our national security posed by steel articles 
                imports from South Korea. The United States and South 
                Korea have agreed on a range of measures, including 
                measures to reduce excess steel production and excess 
                steel capacity, and measures that will contribute to 
                increased capacity utilization in the United States, 
                including a quota that restricts the quantity of steel 
                articles imported into the United States from South 
                Korea. In my judgment, these measures will provide an 
                effective, long-term alternative means to address South 
                Korea's contribution to the threatened impairment to 
                our national security by restraining steel articles 
                exports to the United States

[[Page 20684]]

                from South Korea, limiting transshipment, and 
                discouraging excess capacity and excess steel 
                production. In light of this agreement, I have 
                determined that steel articles imports from South Korea 
                will no longer threaten to impair the national security 
                and have decided to exclude South Korea from the tariff 
                proclaimed in Proclamation 9705. The United States will 
                monitor the implementation and effectiveness of the 
                quota and other measures agreed upon with South Korea 
                in addressing our national security needs, and I may 
                revisit this determination, as appropriate.

                5. The United States has agreed in principle with 
                Argentina, Australia, and Brazil on satisfactory 
                alternative means to address the threatened impairment 
                to our national security posed by steel articles 
                imported from these countries. I have determined that 
                the necessary and appropriate means to address the 
                threat to national security posed by imports of steel 
                articles from Argentina, Australia, and Brazil is to 
                extend the temporary exemption of these countries from 
                the tariff proclaimed in Proclamation 9705, in order to 
                finalize the details of these satisfactory alternative 
                means to address the threatened impairment to our 
                national security posed by steel articles imported from 
                these countries. In my judgment, and for the reasons I 
                stated in paragraph 10 of Proclamation 9711, these 
                discussions will be most productive if steel articles 
                from Argentina, Australia, and Brazil remain exempt 
                from the tariff proclaimed in Proclamation 9705, until 
                the details can be finalized and implemented by 
                proclamation. Because the United States has agreed in 
                principle with these countries, in my judgment, it is 
                unnecessary to set an expiration date for the 
                exemptions. Nevertheless, if the satisfactory 
                alternative means are not finalized shortly, I will 
                consider re-imposing the tariff.

                6. The United States is continuing discussions with 
                Canada, Mexico, and the EU. I have determined that the 
                necessary and appropriate means to address the threat 
                to the national security posed by imports of steel 
                articles from these countries is to continue these 
                discussions and to extend the temporary exemption of 
                these countries from the tariff proclaimed in 
                Proclamation 9705, at least at this time. In my 
                judgment, and for the reasons I stated in paragraph 10 
                of Proclamation 9711, these discussions will be most 
                productive if steel articles from these countries 
                remain exempt from the tariff proclaimed in 
                Proclamation 9705.

                7. For the reasons I stated in paragraph 11 of 
                Proclamation 9711, however, the tariff imposed by 
                Proclamation 9705 remains an important first step in 
                ensuring the economic stability of our domestic steel 
                industry and removing the threatened impairment of the 
                national security. As a result, unless I determine by 
                further proclamation that the United States has reached 
                a satisfactory alternative means to remove the 
                threatened impairment to the national security by 
                imports of steel articles from Canada, Mexico, and the 
                member countries of the EU, the tariff set forth in 
                clause 2 of Proclamation 9705 shall be effective June 
                1, 2018, for these countries.

                8. In light of my determination to exclude, on a long-
                term basis, South Korea from the tariff proclaimed in 
                Proclamation 9705, I have considered whether it is 
                necessary and appropriate in light of our national 
                security interests to make any corresponding 
                adjustments to the tariff set forth in clause 2 of 
                Proclamation 9705 as it applies to other countries. I 
                have determined that, in light of the agreed-upon quota 
                and other measures with South Korea, the measures being 
                finalized with Argentina, Australia, and Brazil, and 
                the ongoing discussions that may result in further 
                long-term exclusions from the tariff proclaimed in 
                Proclamation 9705, it is necessary and appropriate, at 
                this time, to maintain the current tariff level as it 
                applies to other countries.

                9. Section 232 of the Trade Expansion Act of 1962, as 
                amended, authorizes the President to adjust the imports 
                of an article and its derivatives that are being 
                imported into the United States in such quantities or 
                under such circumstances as to threaten to impair the 
                national security.

[[Page 20685]]

                10. Section 604 of the Trade Act of 1974, as amended 
                (19 U.S.C. 2483), authorizes the President to embody in 
                the Harmonized Tariff Schedule of the United States 
                (HTSUS) the substance of statutes 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, DONALD J. TRUMP, President of the 
                United States of America, by the authority vested in me 
                by the Constitution and the laws of the United States 
                of America, including section 232 of the Trade 
                Expansion Act of 1962, as amended, section 301 of title 
                3, United States Code, and section 604 of the Trade Act 
                of 1974, as amended, do hereby proclaim as follows:

                    (1) Imports of all steel articles from Argentina, 
                Australia, Brazil, and South Korea shall be exempt from 
                the duty established in clause 2 of Proclamation 9705, 
                as amended by clause 1 of Proclamation 9711. Imports of 
                all steel articles from Canada, Mexico, and the member 
                countries of the EU shall be exempt from the duty 
                established in clause 2 of Proclamation 9705 until 
                12:01 a.m. eastern daylight time on June 1, 2018. 
                Further, clause 2 of Proclamation 9705, as amended by 
                clause 1 of Proclamation 9711, is also amended by 
                striking the last two sentences and inserting in lieu 
                thereof the following two sentences: ``Except as 
                otherwise provided in this proclamation, or in notices 
                published pursuant to clause 3 of this proclamation, 
                all steel articles imports specified in the Annex shall 
                be subject to an additional 25 percent ad valorem rate 
                of duty with respect to goods entered for consumption, 
                or withdrawn from warehouse for consumption, as 
                follows: (a) on or after 12:01 a.m. eastern daylight 
                time on March 23, 2018, from all countries except 
                Argentina, Australia, Brazil, Canada, Mexico, South 
                Korea, and the member countries of the European Union, 
                and (b) on or after 12:01 a.m. eastern daylight time on 
                June 1, 2018, from all countries except Argentina, 
                Australia, Brazil, and South Korea. This rate of duty, 
                which is in addition to any other duties, fees, 
                exactions, and charges applicable to such imported 
                steel articles, shall apply to imports of steel 
                articles from each country as specified in the 
                preceding sentence.''.
                    (2) In order to provide the quota treatment 
                referred to in paragraph 4 of this proclamation to 
                steel articles imports from South Korea, U.S. Note 16 
                of subchapter III of chapter 99 of the HTSUS is amended 
                as provided for in Part A of the Annex to this 
                proclamation. U.S. Customs and Border Protection (CBP) 
                of the Department of Homeland Security shall implement 
                this quota as soon as practicable, taking into account 
                all steel articles imports from South Korea since 
                January 1, 2018.
                    (3) The exemption afforded to steel articles from 
                Canada, Mexico, and the member countries of the EU 
                shall apply only to steel articles of such countries 
                entered for consumption, or withdrawn from warehouse 
                for consumption, through the close of May 31, 2018, at 
                which time such countries shall be deleted from the 
                article description of heading 9903.80.01 of the HTSUS.
                    (4) Clause 5 of Proclamation 9711 is amended by 
                inserting the phrase ``, except those eligible for 
                admission under ``domestic status'' as defined in 19 
                CFR 146.43, which is subject to the duty imposed 
                pursuant to Proclamation 9705, as amended by 
                Proclamation 9711,'' after the words ``Any steel 
                article'' in the first and second sentences.
                    (5) Steel articles shall not be subject upon entry 
                for consumption to the duty established in clause 2 of 
                Proclamation 9705, as amended by clause 1 of this 
                proclamation, merely by reason of manufacture in a U.S. 
                foreign trade zone. However, steel articles admitted to 
                a U.S. foreign trade zone in ``privileged foreign 
                status'' pursuant to clause 5 of Proclamation 9711, as 
                amended by clause 4 of this proclamation, shall retain 
                that status consistent with 19 CFR 146.41(e).
                    (6) No drawback shall be available with respect to 
                the duties imposed on any steel article pursuant to 
                Proclamation 9705, as amended by clause 1 of this 
                proclamation.

[[Page 20686]]

                    (7) The Secretary, in consultation with CBP and 
                other relevant executive departments and agencies, 
                shall revise the HTSUS so that it conforms to the 
                amendments and effective dates directed in this 
                proclamation. The Secretary shall publish any such 
                modification to the HTSUS in the Federal Register.
                    (8) 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.

                IN WITNESS WHEREOF, I have hereunto set my hand this 
                thirtieth day of April, in the year of our Lord two 
                thousand eighteen, and of the Independence of the 
                United States of America the two hundred and forty-
                second.
                
                
                    (Presidential Sig.)

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[FR Doc. 2018-09841
Filed 5-4-18; 11:15 a.m.]
Billing code 7020-02-C