[Federal Register Volume 85, Number 19 (Wednesday, January 29, 2020)]
[Presidential Documents]
[Pages 5281-5293]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01806]
[[Page 5279]]
Vol. 85
Wednesday,
No. 19
January 29, 2020
Part II
The President
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Proclamation 9980--Adjusting Imports of Derivative Aluminum Articles
and Derivative Steel Articles Into the United States
Proclamation 9981--National Day of Remembrance of the 75th Anniversary
of the Liberation of Auschwitz, 2020
Proclamation 9982--National School Choice Week, 2020
Presidential Documents
Federal Register / Vol. 85 , No. 19 / Wednesday, January 29, 2020 /
Presidential Documents
___________________________________________________________________
Title 3--
The President
[[Page 5281]]
Proclamation 9980 of January 24, 2020
Adjusting Imports of Derivative Aluminum Articles
and Derivative Steel Articles 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,
and on January 19, 2018, the Secretary transmitted to
me a report on his investigation into the effect of
imports of aluminum articles on the national security
of the United States. Both reports were issued pursuant
to section 232 of the Trade Expansion Act of 1962, as
amended (19 U.S.C. 1862).
2. In Proclamation 9704 of March 8, 2018 (Adjusting
Imports of Aluminum Into the United States), and
Proclamation 9705 of March 8, 2018 (Adjusting Imports
of Steel Into the United States), I concurred in the
Secretary's findings that aluminum articles and steel
articles were 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. I therefore decided to adjust the imports of
aluminum articles, as defined in clause 1 of
Proclamation 9704, as amended, by imposing a 10 percent
ad valorem tariff on such articles imported from most
countries, beginning March 23, 2018. I also decided to
adjust the imports of steel articles, as defined in
clause 1 of Proclamation 9705, as amended, by imposing
a 25 percent ad valorem tariff on such articles
imported from most countries, beginning March 23, 2018.
3. In Proclamation 9758 of May 31, 2018 (Adjusting
Imports of Aluminum Into the United States), I decided
to further adjust imports of aluminum articles by
imposing quotas on such articles from the Argentine
Republic (Argentina). In Proclamation 9740 of April 30,
2018 (Adjusting Imports of Steel Into the United
States), I decided to adjust imports of steel articles
by imposing quotas on such articles from the Republic
of Korea (South Korea), and in Proclamation 9759 of May
31, 2018 (Adjusting Imports of Steel Into the United
States), I decided to adjust imports of steel articles
by imposing quotas on such articles from Argentina and
the Republic of Brazil (Brazil).
4. In Proclamation 9704 and Proclamation 9705, I
directed the Secretary to monitor imports of aluminum
articles and steel articles, respectively, 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.
5. The Secretary has informed me that domestic steel
producers' capacity utilization has not stabilized for
an extended period of time at or above the 80 percent
capacity utilization level identified in his report as
necessary to remove the threatened impairment of the
national security. Stabilizing at that level is
important to provide the industry with a reasonable
expectation that market conditions will prevail long
enough to justify the investment necessary to ramp up
production to a sustainable and profitable level.
Capacity utilization in the aluminum industry has
improved, but it is still below the target capacity
utilization that the Secretary recommended in his
report. Although imports of aluminum articles and steel
articles have declined
[[Page 5282]]
since the imposition of the tariffs and quotas, the
Secretary has informed me that imports of certain
derivatives of aluminum articles and imports of certain
derivatives of steel articles have significantly
increased since the imposition of the tariffs and
quotas. The net effect of the increase of imports of
these derivatives has been to erode the customer base
for U.S. producers of aluminum and steel and undermine
the purpose of the proclamations adjusting imports of
aluminum and steel articles to remove the threatened
impairment of the national security.
6. The derivative articles the Secretary identified are
described in Annex I (aluminum) and Annex II (steel) to
this proclamation. For purposes of this proclamation,
the Secretary determined that an article is
``derivative'' of an aluminum article or steel article
if all of the following conditions are present: (a) the
aluminum article or steel article represents, on
average, two-thirds or more of the total cost of
materials of the derivative article; (b) import volumes
of such derivative article increased year-to-year since
June 1, 2018, following the imposition of the tariffs
in Proclamation 9704 and Proclamation 9705, as amended
by Proclamation 9739 and Proclamation 9740,
respectively, in comparison to import volumes of such
derivative article during the 2 preceding years; and
(c) import volumes of such derivative article following
the imposition of the tariffs exceeded the 4 percent
average increase in the total volume of goods imported
into the United States during the same period since
June 1, 2018. The modifications to subchapter III of
chapter 99 of the Harmonized Tariff Schedule of the
United States described in Annex I (aluminum) and Annex
II (steel) to this proclamation implement the
Secretary's determinations in this regard.
7. From June 2018 to May 2019, import volumes of steel
nails, tacks, drawing pins, corrugated nails, staples,
and similar derivative articles increased by 33
percent, compared to June 2017 to May 2018, and
increased by 29 percent, compared to June 2016 to May
2017. From January 2019 to November 2019, import
volumes of such articles increased by 23 percent,
compared to the same period in 2017. Similarly, from
June 2018 to May 2019, import volumes of aluminum
stranded wire, cables, plaited bands, and the like
(including slings and similar derivative articles)
increased by 152 percent, compared to June 2017 to May
2018, and increased by 52 percent, compared to June
2016 to May 2017. From January 2019 to November 2019,
import volumes of such articles increased by 127
percent, compared to the same period in 2017. Finally,
from June 2018 to May 2019, import volumes of bumper
and body stampings of aluminum and steel for motor
vehicles and tractors increased by 38 percent, compared
to June 2017 to May 2018, and increased by 56 percent,
compared to June 2016 to May 2017. From January 2019 to
November 2019, import volumes of such articles
increased by 37 percent, compared to the same period in
2017.
8. It is the Secretary's assessment that foreign
producers of these derivative articles have increased
shipments of such articles to the United States to
circumvent the duties on aluminum articles and steel
articles imposed in Proclamation 9704 and Proclamation
9705, and that imports of these derivative articles
threaten to undermine the actions taken to address the
risk to the national security of the United States
found in Proclamation 9704 and Proclamation 9705. As
detailed in the Secretary's reports, domestic
production capacity to produce aluminum articles and
steel articles for national defense and critical
infrastructure is essential to United States national
security. This domestic production capacity is used to
provide the essential inputs of aluminum and steel used
in derivative aluminum articles and derivative steel
articles. The Secretary has assessed that reducing
imports of the derivative articles described in Annex I
and Annex II to this proclamation would reduce
circumvention and facilitate the adjustment of imports
that Proclamation 9704 and Proclamation 9705, as
amended, made to increase domestic capacity utilization
to address the threatened impairment of the national
security of the United States.
[[Page 5283]]
9. Based on the Secretary's assessments, I have
concluded that it is necessary and appropriate in light
of our national security interests to adjust the
tariffs imposed by previous proclamations to apply to
the derivatives of aluminum articles and steel articles
described in Annex I and Annex II to this proclamation.
This action is necessary and appropriate to address
circumvention that is undermining the effectiveness of
the adjustment of imports made in Proclamation 9704 and
Proclamation 9705, as amended, and to remove the
threatened impairment of the national security of the
United States found in those proclamations.
10. 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 of the United States.
11. 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) In order to establish increases in the duty
rate on imports of certain derivative articles,
subchapter III of chapter 99 of the HTSUS is modified
as provided in Annex I and Annex II to this
proclamation. Except as otherwise provided in this
proclamation, all imports of derivative aluminum
articles specified in Annex I to this proclamation
shall be subject to an additional 10 percent ad valorem
rate of duty, and all imports of derivative steel
articles specified in Annex II to this proclamation
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, on or after 12:01 a.m. eastern standard
time on February 8, 2020. These rates of duty, which
are in addition to any other duties, fees, exactions,
and charges applicable to such imported derivative
aluminum articles or steel articles, shall apply to
imports of derivative aluminum articles described in
Annex I to this proclamation from all countries except
Argentina, the Commonwealth of Australia (Australia),
Canada, and the United Mexican States (Mexico) and to
imports of derivative steel articles described in Annex
II to this proclamation from all countries except
Argentina, Australia, Brazil, Canada, Mexico, and South
Korea. The Secretary shall continue to monitor imports
of the derivative articles described in Annex I and
Annex II to this proclamation, and shall, from time to
time, in consultation with the United States Trade
Representative (USTR), review the status of such
imports with respect to the national security of the
United States. In the event of a surge of imports of
any derivative article described in Annex I or Annex II
to this proclamation from any excepted country, the
Secretary, with the concurrence of the USTR, is
authorized to extend application of the tariff imposed
by this proclamation on imports of any derivative
article experiencing such surge from such country, or
to adopt appropriate quotas for imports of such
derivative article from such country, or to negotiate a
voluntary agreement with such country to ensure that
imports of such derivative article from such country do
not undermine the effectiveness of the adjustment of
imports made in Proclamation 9704 and Proclamation
9705, as amended. The Secretary shall publish such
action in the Federal Register and notification shall
be provided to U.S. Customs and Border Protection (CBP)
of the Department of Homeland Security.
[[Page 5284]]
(2) The Secretary, in consultation with the
Secretary of State, the Secretary of the Treasury, the
Secretary of Defense, the USTR, the Assistant to the
President for National Security Affairs, the Assistant
to the President for Economic Policy, and such other
senior executive branch officials as the Secretary
deems appropriate, is hereby authorized to provide
relief from the additional duties set forth in clause 1
of this proclamation for any derivative article
determined not to be produced in the United States in a
sufficient and reasonably available amount or of a
satisfactory quality and is also authorized to provide
such relief based upon specific national security
considerations. Such relief shall be provided for a
derivative article only after a request for exclusion
is made by a directly affected party located in the
United States. If the Secretary determines that a
particular derivative article should be excluded, the
Secretary shall publicly post such determination and
notify CBP concerning such article so that it will be
excluded from the duties described in clause 1 of this
proclamation. For merchandise entered for consumption,
or withdrawn from warehouse for consumption, on or
after the date the duty established under this
proclamation is effective and with respect to which
liquidation is not final, such relief shall be
retroactive to the date the request for relief was
accepted by the Department of Commerce.
(3) Any derivative article described in Annex I or
Annex II to this proclamation, except those eligible
for admission under ``domestic status'' as defined in
19 CFR 146.43, that is subject to the duty imposed by
clause 1 of this proclamation and that is admitted into
a U.S. foreign trade zone on or after 12:01 a.m.
eastern standard time on February 8, 2020, may only be
admitted as ``privileged foreign status'' as defined in
19 CFR 146.41, and will be subject upon entry for
consumption to any ad valorem rates of duty related to
the classification under the applicable HTSUS
subheading. Any derivative article that is described in
Annex I or Annex II to this proclamation, except those
eligible for admission under ``domestic status'' as
defined in 19 CFR 146.43, that is subject to the duty
imposed by clause 1 of this proclamation, and that was
admitted into a U.S. foreign trade zone under
``privileged foreign status'' as defined in 19 CFR
146.41, prior to 12:01 a.m. eastern standard time on
February 8, 2020, will likewise be subject upon entry
for consumption to any ad valorem rates of duty related
to the classification under the applicable HTSUS
subheading added by this proclamation.
(4) Derivative articles shall not be subject upon
entry for consumption to the duty established in clause
1 of this proclamation merely by reason of manufacture
in a U.S. foreign trade zone. However, derivative
articles admitted into a U.S. foreign trade zone in
``privileged foreign status'' pursuant to clause 3 of
this proclamation shall retain that status consistent
with 19 CFR 146.41(e).
(5) No drawback shall be available with respect to
the duties imposed on any derivative article imposed by
clause 1 of this proclamation.
(6) 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.
(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.
[[Page 5285]]
IN WITNESS WHEREOF, I have hereunto set my hand this
twenty-fourth day of January, in the year of our Lord
two thousand twenty, and of the Independence of the
United States of America the two hundred and forty-
fourth.
(Presidential Sig.)
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[FR Doc. 2020-01806
Filed 1-28-20; 11:15 a.m.]
Billing code 7020-02-C