[Federal Register Volume 84, Number 98 (Tuesday, May 21, 2019)]
[Presidential Documents]
[Pages 23421-23423]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-10759]



[[Page 23419]]

Vol. 84

Tuesday,

No. 98

May 21, 2019

Part IV





The President





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Proclamation 9886--Adjusting Imports of Steel Into the United States



Proclamation 9887--To Modify the List of Beneficiary Developing 
Countries Under the Trade Act of 1974
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  Federal Register / Vol. 84 , No. 98 / Tuesday, May 21, 2019 / 
Presidential Documents  

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 Title 3--
 The President

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                Proclamation 9886 of May 16, 2019

                
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 
                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). The Secretary found and 
                advised me of his opinion that steel 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.

                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 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), 
                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 these steel 
                articles by imposing a 25 percent ad valorem tariff on 
                such articles imported from most countries.

                3. In Proclamation 9705, I also directed the Secretary 
                to monitor imports of steel articles and inform me of 
                any circumstances that in the Secretary's opinion might 
                indicate the need for further action under section 232 
                of the Trade Expansion Act of 1962, as amended, with 
                respect to such imports.

                4. In August 2018, the Secretary informed me that while 
                capacity utilization in the domestic steel industry had 
                improved, it was still below the target capacity 
                utilization level recommended by the Secretary in his 
                report. Although imports of steel articles had declined 
                since the imposition of the tariff, I was advised that 
                they were still several percentage points greater than 
                the level of imports that would allow domestic capacity 
                utilization to reach the target level. Given that 
                imports had not declined as much as anticipated and 
                capacity utilization had not increased to that target 
                level, I concluded that it was necessary and 
                appropriate in light of our national security interests 
                to adjust the tariff imposed by previous proclamations.

                5. In the Secretary's January 2018 report, the 
                Secretary recommended that I consider applying a higher 
                tariff to a list of specific countries should I 
                determine that all countries should not be subject to 
                the same tariff. One of the countries on that list was 
                the Republic of Turkey (Turkey). As the Secretary 
                explained in that report, Turkey was among the major 
                exporters of steel to the United States for domestic 
                consumption. To further reduce imports of steel 
                articles and increase domestic capacity utilization, I 
                determined in Proclamation 9772 of August 10, 2018 
                (Adjusting Imports of Steel Into the United States), 
                that it was necessary and appropriate to impose a 50 
                percent ad valorem tariff on steel articles imported 
                from Turkey, beginning on August 13, 2018. The 
                Secretary advised me that this adjustment would be a 
                significant step toward ensuring the viability of the 
                domestic steel industry.

                6. The Secretary has now advised me that, since the 
                implementation of the higher tariff under Proclamation 
                9772, imports of steel articles have declined by 12 
                percent in 2018 compared to 2017 and imports of steel

[[Page 23422]]

                articles from Turkey have declined by 48 percent in 
                2018, with the result that the domestic industry's 
                capacity utilization has improved at this point to 
                approximately the target level recommended in the 
                Secretary's report. This target level, if maintained 
                for an appropriate period, will improve the financial 
                viability of the domestic steel industry over the long 
                term.

                7. Given these improvements, I have determined that it 
                is necessary and appropriate to remove the higher 
                tariff on steel imports from Turkey imposed by 
                Proclamation 9772, and to instead impose a 25 percent 
                ad valorem tariff on steel imports from Turkey, 
                commensurate with the tariff imposed on such articles 
                imported from most countries. Maintaining the existing 
                25 percent ad valorem tariff on most countries is 
                necessary and appropriate at this time to address the 
                threatened impairment of the national security that the 
                Secretary found in the January 2018 report.

                8. 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.

                9. 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) Clause 2 of Proclamation 9705, as amended, is revised to read as 
follows:

``(2)(a) In order to establish certain modifications to the duty rate on 
imports of steel articles, subchapter III of chapter 99 of the HTSUS is 
modified as provided in the Annex to this proclamation and any subsequent 
proclamations regarding such steel articles.

                    (b) Except as otherwise provided in this 
                proclamation, or in notices published pursuant to 
                clause 3 of this proclamation, all steel articles 
                imports covered by heading 9903.80.01, in subchapter 
                III of chapter 99 of the HTSUS, 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: (i) 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; (ii) on or after 12:01 
                a.m. eastern daylight time on June 1, 2018, from all 
                countries except Argentina, Australia, Brazil, and 
                South Korea; (iii) on or after 12:01 a.m. eastern 
                daylight time on August 13, 2018, from all countries 
                except Argentina, Australia, Brazil, South Korea, and 
                Turkey; and (iv) on or after 12:01 a.m. eastern 
                daylight time on May 21, 2019, from all countries 
                except Argentina, Australia, Brazil, and South Korea. 
                Further, except as otherwise provided in notices 
                published pursuant to clause 3 of this proclamation, 
                all steel articles imports from Turkey covered by 
                heading 9903.80.02, in subchapter III of chapter 99 of 
                the HTSUS, shall be subject to a 50 percent ad valorem 
                rate of duty with respect to goods entered for 
                consumption, or withdrawn from warehouse for 
                consumption, on or after 12:01 a.m. eastern daylight 
                time on August 13, 2018 and prior to 12:01 a.m. eastern 
                daylight time on May 21, 2019. All steel articles 
                imports covered by heading 9903.80.61, in subchapter 
                III of chapter 99 of the HTSUS, shall be subject to the 
                additional 25 percent ad valorem rate of duty 
                established herein with respect to goods entered for 
                consumption, or withdrawn from warehouse for 
                consumption, on or after 12:01 a.m. eastern daylight 
                time on the date specified in a determination by the 
                Secretary

[[Page 23423]]

                granting relief. These rates of duty, which are 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 three 
                sentences.''.

(2) The text of U.S. note 16(a)(i) to subchapter III of chapter 99 of the 
HTSUS is amended by deleting ``Except as provided in U.S. note 16(a)(ii), 
which applies to products of Turkey that are provided for in heading 
9903.80.02, heading 9903.80.01 provides'' and inserting the following in 
lieu thereof: ``Heading 9903.80.01 provides''.

(3) Heading 9903.80.02, in subchapter III of chapter 99 of the HTSUS, and 
its accompanying material, and U.S. note 16(a)(ii) to subchapter III of 
chapter 99 of the HTSUS, are deleted.

(4) Paragraphs (b), (c), and (d) of U.S. note 16 to subchapter III of 
chapter 99 of the HTSUS are each amended by replacing ``headings 9903.80.01 
and 9903.80.02'' with ``heading 9903.80.01''.

(5) The ``Article description'' for heading 9903.80.01 in subchapter III of 
chapter 99 of the HTSUS is amended by replacing ``of Brazil, of Turkey'' 
with ``of Brazil''.

(6) The modifications to the HTSUS made by clauses 1 through 5 of this 
proclamation shall be effective with respect to goods entered for 
consumption, or withdrawn from warehouse for consumption, on or after 12:01 
a.m. eastern daylight time on May 21, 2019 and shall continue in effect, 
unless such actions are expressly reduced, modified, or terminated.

(7) Any steel articles imports from Turkey that were admitted into a United 
States foreign trade zone under ``privileged foreign status'' as defined in 
19 CFR 146.41, prior to 12:01 a.m. eastern daylight time on May 21, 2019, 
shall be subject upon entry for consumption on or after such time and date 
to the ad valorem rate of duty in heading 9903.80.01 in subchapter III of 
chapter 99 of the HTSUS.

(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 
                sixteenth day of May, in the year of our Lord two 
                thousand nineteen, and of the Independence of the 
                United States of America the two hundred and forty-
                third.
                
                
                    (Presidential Sig.)

[FR Doc. 2019-10759
Filed 5-20-19; 11:15 am]
Billing code 3295-F9-P