    [United States Statutes at Large, Volume 134, 116th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    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 sec-

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    tion 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 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

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    ``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.
    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

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    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 effective-
    ness 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

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    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.
    (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.

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    (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.
    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.
    DONALD J. TRUMP

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