[Weekly Compilation of Presidential Documents Volume 35, Number 21 (Monday, May 31, 1999)]
[Pages 996-998]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Proclamation 7202--To Eliminate Circumvention of the Quantitative 
Limitations Applicable to Imports   of Wheat Gluten

May 28, 1999

By the President of the United States

of America

A Proclamation

    1. On March 18, 1998, the United States International Trade 
Commission (USITC) transmitted to the President a unanimous affirmative 
determination in its investigation under section 202 of the Trade Act of 
1974, as amended (the Trade Act) (19 U.S.C. 2252), with respect to 
imports of wheat gluten provided for in subheadings 1109.00.10 and 
1109.00.90 of the Harmonized Tariff Schedule of the United States (HTS). 
Under section 202 of the Trade Act, the USITC determined that such wheat 
gluten is being imported into the United States in such increased 
quantities as to be a substantial cause of serious injury to the 
domestic industry producing a like or directly competitive article. 
Further, pursuant to section 311(a) of the North American Free Trade 
Agreement Implementation Act (NAFTA Implementation Act) (19 U.S.C. 
3371(a)), the USITC

[[Page 997]]

made negative findings with respect to imports of wheat gluten from 
Canada and Mexico. Pursuant to section 202(e) of the Trade Act (19 
U.S.C. 2253(e)), the USITC also transmitted to the President its 
recommendation on the action that would address the serious injury to 
the domestic industry and be most effective in facilitating the efforts 
of the domestic industry to make a positive adjustment to import 
competition.
    2. On May 30, 1998, I issued Proclamation 7103, which implemented 
action of a type described in section 203(a)(3) of the Trade Act (19 
U.S.C. 2253(a)(3)). Pursuant to section 203 of the Trade Act (19 U.S.C. 
2253), and taking into account the considerations specified in section 
203(a)(2) of the Trade Act, I determined to establish quantitative 
limitations on imports of wheat gluten, provided for in HTS subheadings 
1109.00.10 and 1109.00.90, imposed for a period of 3 years plus 1 day, 
with annual increases in such quota limits of 6 percent in the second 
year and in the third year. These limitations were to apply to imports 
from all countries, and the quota quantity was to be allocated among 
such countries, except for products of Canada, Mexico, Israel, 
beneficiary countries under the Caribbean Basin Economic Recovery Act 
and the Andean Trade Preference Act, and other developing countries that 
accounted for a minor share of wheat gluten imports that I determined to 
exclude from any restriction. Pursuant to section 203(a)(1)(A) of the 
Trade Act (19 U.S.C. 2253(a)(1)(A)), I further determined that these 
actions would facilitate efforts by the domestic industry to make a 
positive adjustment to import competition and provide greater economic 
and social benefits than costs.
    3. Despite the quantitative limitations on imports of wheat gluten, 
during the first restraint period quantities of wheat gluten the product 
of the European Community have been entered in excess of the allocated 
amount.
    4. Section 204(b)(2) of the Trade Act (19 U.S.C. 2254(b)(2)) 
authorizes the President to take such additional action under section 
203 of the Trade Act as may be necessary to eliminate any circumvention 
of any action previously taken under such section. Pursuant to section 
204(b)(2) of the Trade Act, I have determined it is appropriate and 
feasible to take additional action pursuant to section 203(a)(3) of the 
Trade Act. Such action shall take the form of a reduction in the 
European Community's 1999/2000 wheat gluten quota allotment in the 
amount of 5,204,000 kg, which represents the amount of wheat gluten that 
entered the United States in excess of the European Community's 1998 
quota allocation. I determine this action is necessary to eliminate 
circumvention of the safeguard action previously undertaken in 
Proclamation 7103.
    5. Section 604 of the Trade Act, as amended (19 U.S.C. 2483), 
authorizes the President to embody in the HTS the substance of the 
relevant provisions of that Act, and of other acts 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, William J. Clinton, President of the United 
States of America, acting under the authority vested in me by the 
Constitution and the laws of the United States, including but not 
limited to sections 203, 204, and 604 of the Trade Act, do proclaim 
that:
    (1) The allocation of the quota quantity for wheat gluten for the 
restraint period from June 1, 1999, through May 31, 2000, inclusive, 
that was accorded to wheat gluten the product of the European Community 
by the Annex to Presidential Proclamation 7103 of May 30, 1998, as set 
forth in subheading 9903.11.06 of subchapter III, chapter 99 of the HTS, 
is modified by striking the allocated quota quantity set forth for the 
European Community ``25,983,000 kg'' from such subheading and by 
inserting in lieu thereof the new allocated quota quantity for the 
European Community ``20,581,000 kg''.
    (2) In order to ensure that any imports of wheat gluten the product 
of any country, or the product of the European Community, having an 
allocated share of the quantitative restraints set forth in subheadings 
9903.11.05 through 9903.11.07, inclusive, of the HTS and superior text 
thereto, are limited to the specified share during a quota period, the 
HTS is modified by adding at the end of U.S.

[[Page 998]]

Note 7 to subchapter III of chapter 99 the following new paragraph:
    ``Whenever a quantity is allocated to a country, to `other 
countries' or to the European Community under such subheadings, and the 
quota quantity specified for such country or countries or for the 
European Community has been entered for the specified restraint period, 
any shipments of wheat gluten the product of such country or countries 
or of the European Community entered in excess of such allocated quota 
quantity shall be charged to the allocation for such country or 
countries or for the European Community for the subsequent restraint 
period. If the allocated quantity for a country or countries or for the 
European Community under subheading 9903.11.07, including any quantity 
carried over from the restraint periods provided for in subheadings 
9903.11.05 and 9903.11.06 and charged against the appropriate allocation 
under subheading 9903.11.07, has been entered, any imports in excess of 
the allocated quota quantity for a country or countries or for the 
European Community shall be entered into bonded warehouse or shall be 
exported, and shall not be entered into the customs territory of the 
United States until 12:00 a.m. e.d.t. June 1, 2001. The Secretary of the 
Treasury is authorized to take any necessary action in order to ensure 
that no shipments in excess of the allocation for a country or countries 
or for the European Community for the period from June 1, 2000 through 
June 1, 2001, inclusive, is entered into the customs territory of the 
United States.''
    (3) Subheading 9903.11.06 is modified by inserting after ``Other'' 
the word ``countries''.
    (4) Any provision of any previous proclamation or Executive order 
that is inconsistent with the actions taken in this proclamation is 
superseded to the extent of such inconsistency.
    (5) The modifications made in this proclamation shall be effective 
with respect to goods entered, or withdrawn from warehouse for 
consumption, on or after 12:01 a.m. e.d.t. on June 1, 1999, and shall 
continue in effect as provided until 11:59 p.m. e.d.t. on June 1, 2001, 
unless such actions are earlier expressly modified or terminated.
    In Witness Whereof, I have hereunto set my hand this twenty-eighth 
day of May, in the year of our Lord nineteen hundred and ninety-nine, 
and of the Independence of the United States of America the two hundred 
and twenty-third.
                                            William J. Clinton

[Filed with the Office of the Federal Register, 10:59 a.m., June 1, 
1999]

Note: This proclamation will be published in the Federal Register on 
June 2.