[Weekly Compilation of Presidential Documents Volume 38, Number 10 (Monday, March 11, 2002)]
[Pages 355-359]
[Online from the Government Publishing Office, www.gpo.gov]
<R04>
Proclamation 7529--To Facilitate Positive Adjustment to Competition From
Imports of Certain Steel Products
March 5, 2002
By the President of the United States
of America
A Proclamation
1. On December 19, 2001, the United States International Trade
Commission (ITC) transmitted to the President a report on 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 certain
steel products.
2. The ITC reached affirmative determinations under section 202(b)
of the Trade Act
[[Page 356]]
that the following products are being imported into the United States in
such increased quantities as to be a substantial cause of serious
injury, or threat of serious injury, to the domestic industries
producing like or directly competitive articles: (a) certain carbon
flat-rolled steel, including carbon and alloy steel slabs (``slabs'');
plate (including cut-to-length plate and clad plate) (``plate''); hot-
rolled steel (including plate in coils) (``hot-rolled steel''); cold-
rolled steel (other than grain-oriented electrical steel) (``cold-rolled
steel''); and corrosion-resistant and other coated steel (``coated
steel'') (collectively, ``certain flat steel''); (b) carbon and alloy
hot-rolled bar and light shapes (``hot-rolled bar''); (c) carbon and
alloy cold-finished bar (``cold-finished bar''); (d) carbon and alloy
rebar (``rebar''); (e) carbon and alloy welded tubular products (other
than oil country tubular goods) (``certain tubular products''); (f)
carbon and alloy flanges, fittings, and tool joints (``carbon and alloy
fittings''); (g) stainless steel bar and light shapes (``stainless steel
bar''); and (h) stainless steel rod. The ITC commissioners were equally
divided with respect to the determination required under section 202(b)
regarding whether (i) carbon and alloy tin mill products (``tin mill
products'') and (j) stainless steel wire.
3. The ITC provided detailed definitions of the products included in
categories (a) through (j) of paragraph 2, and their corresponding
subheadings, under the Harmonized Tariff Schedule of the United States
(HTS) in Appendix A to its determination, set out at 66 Fed. Reg. 67304,
67308-67311 (December 28, 2001). By February 4, 2002, the ITC provided
additional information in response to a request by the United States
Trade Representative (USTR) under section 203(a)(5) of the Trade Act (19
U.S. 2253(a)(5)) (the ``supplemental report'').
4. Section 330(d)(1) of the Tariff Act of 1930, as amended (19
U.S.C. 1330(d)(1)), provides that, when the ITC is required to determine
under section 202(b) of the Trade Act whether increased imports of an
article are a substantial cause of serious injury, or the threat
thereof, and the commissioners voting are equally divided with respect
to such determination, then the determination agreed upon by either
group of commissioners may be considered by the President as the
determination of the ITC. Having considered the determinations of the
commissioners with regard to tin mill products and stainless steel wire,
I have decided to consider the determinations of the groups of
commissioners voting in the affirmative with regard to each of these
products to be the determination of the ITC.
5. Pursuant to section 311(a) of the North American Free Trade
Agreement Implementation Act (the ``NAFTA Implementation Act'') (19
U.S.C. 3371(a)), the ITC made findings as to whether imports from Canada
and Mexico, considered individually, account for a substantial share of
total imports and contribute importantly to the serious injury, or
threat thereof, caused by imports. The ITC made negative findings with
respect to imports from Canada of certain flat steel, tin mill products,
rebar, stainless steel rod, and stainless steel wire; and the ITC also
made negative findings with respect to imports from Mexico of tin mill
products, hot-rolled bar, cold-finished bar, rebar, certain tubular
products, stainless steel bar, stainless steel rod, and stainless steel
wire. The ITC made affirmative findings with respect to imports from
Canada of hot-rolled bar, cold-finished bar, carbon and alloy fittings,
and stainless steel bar; and the ITC also made affirmative findings with
respect to imports from Mexico of certain flat steel, and carbon and
alloy steel fittings. The ITC commissioners were equally divided with
respect to imports from Canada of certain tubular products.
6. The ITC commissioners voting in the affirmative under section
202(b) of the Trade Act also transmitted to the President their
recommendations made pursuant to section 202(e) of the Trade Act (19
U.S.C. 2252(e)) with respect to the actions that, in their view, would
address the serious injury, or threat thereof, to the domestic
industries and be most effective in facilitating the efforts of those
industries to make a positive adjustment to import competition.
7. Pursuant to section 203 of the Trade Act (19 U.S.C. 2253), and
after taking into account the considerations specified in section
203(a)(2) of the Trade Act and the ITC supplemental report, I have
determined to
[[Page 357]]
implement action of a type described in section 203(a)(3) (a ``safeguard
measure'') with regard to the following steel products:
(a) certain flat steel, consisting of: slabs provided for in the
superior text to subheadings 9903.72.30 through 9903.72.48 in the Annex
to this proclamation; plate provided for in the superior text to
subheadings 9903.72.50 through 9903.72.62 in the Annex to this
proclamation; hot-rolled steel provided for in the superior text to
subheadings 9903.72.65 through 9903.72.82 in the Annex to this
proclamation; cold-rolled steel provided for in the superior text to
subheadings 9903.72.85 through 9903.73.04 in the Annex to this
proclamation; and coated steel provided for in the superior text to
subheadings 9903.73.07 through 9903.73.23 in the Annex to this
proclamation;
(b) hot-rolled bar provided for in the superior text to subheadings
9903.73.42 through 9903.73.52 in the Annex to this proclamation;
(c) cold-finished bar provided for in the superior text to
subheadings 9903.73.55 through 9903.73.62 in the Annex to this
proclamation;
(d) rebar provided for in the superior text to subheadings
9903.73.65 through 9903.73.71 in the Annex to this proclamation;
(e) certain tubular products provided for in the superior text to
subheadings 9903.73.74 through 9903.73.86 in the Annex to this
proclamation;
(f) carbon and alloy fittings provided for in the superior text to
subheadings 9903.73.88 through 9903.73.95 in the Annex to this
proclamation;
(g) stainless steel bar provided for in the superior text to
subheadings 9903.73.97 through 9903.74.06 in the Annex to this
proclamation;
(h) stainless steel rod provided for in the superior text to
subheadings 9903.74.08 through 9903.74.16 in the Annex to this
proclamation;
(i) tin mill products provided for in the superior text to
subheadings 9903.73.26 through 9903.73.39 in the Annex to this
proclamation; and
(j) stainless steel wire provided for in the superior text to
subheadings 9903.74.18 through 9903.74.24 in the Annex to this
proclamation.
The steel products listed in clauses (i) through (ix) of subdivision
(b) of U.S. Note 11 to subchapter III of chapter 99 of the HTS (``Note
11'') in the Annex to this proclamation were excluded from the
determinations of the ITC described in paragraph 2, and are excluded
from these safeguard measures. I have also determined to exclude from
these safeguard measures the steel products listed in the subsequent
clauses of subdivision (b) of Note 11 in the Annex to this proclamation.
8. Pursuant to section 312(a) of the NAFTA Implementation Act (19
U.S.C. 3372(a)), I have determined after considering the report and
supplemental report of the ITC that imports from each of Canada and
Mexico of certain flat steel, tin mill products, hot-rolled bar, cold-
finished bar, rebar, certain tubular products, carbon and alloy
fittings, stainless steel bar, stainless steel rod, and stainless steel
wire, considered individually, do not account for a substantial share of
total imports or do not contribute importantly to the serious injury or
threat of serious injury found by the ITC. Accordingly, pursuant to
section 312(b) of the NAFTA Implementation Act (19 U.S.C. 3372(b)), I
have excluded certain flat steel, tin mill products, hot-rolled bar,
cold-finished bar, rebar, certain tubular products, carbon and alloy
fittings, stainless steel bar, stainless steel rod, and stainless steel
wire the product of Mexico or Canada from the actions I am taking under
section 203 of the Trade Act.
9. Pursuant to section 203 of the Trade Act (19 U.S.C. 2253), the
actions I have determined to take shall be safeguard measures in the
form of:
(a) a tariff rate quota on imports of slabs described in paragraph
7, imposed for a period of 3 years plus 1 day, with annual increases in
the within-quota quantities and annual reductions in the rates of duty
applicable to goods entered in excess of those quantities in the second
and third years; and
(b) an increase in duties on imports of certain flat steel, other
than slabs (including plate, hot-rolled steel, cold-rolled steel and
coated steel), hot-rolled bar, cold-finished bar, rebar, certain welded
tubular products, carbon and alloy fittings, stainless steel bar,
stainless steel rod, tin mill products, and
[[Page 358]]
stainless steel wire, as described in paragraph 7, imposed for a period
of 3 years plus 1 day, with annual reductions in the rates of duty in
the second and third years, as provided in the Annex to this
proclamation.
10. The safeguard measures described in paragraph 9 shall not apply
to the products listed in clauses following clause (ix) in subdivision
(b) of Note 11 in the Annex to this proclamation.
11. These safeguard measures shall apply to imports from all
countries, except for products of Canada, Israel, Jordan, and Mexico.
12. These safeguard measures shall not apply to imports of any
product described in paragraph 7 of a developing country that is a
member of the World Trade Organization (WTO), as long as that country's
share of total imports of the product, based on imports during a recent
representative period, does not exceed 3 percent, provided that imports
that are the product of all such countries with less than 3 percent
import share collectively account for not more than 9 percent of total
imports of the product. If I determine that a surge in imports of a
product described in paragraph 7 of a developing country WTO member
undermines the effectiveness of the pertinent safeguard measure, the
safeguard measure shall be modified to apply to such product from such
country.
13. The in-quota quantity in each year under the tariff rate quota
described in paragraph 9 shall be allocated among all countries except
those countries the products of which are excluded from such tariff rate
quota pursuant to paragraphs 11 and 12.
14. Pursuant to section 203(a)(1)(A) of the Trade Act (19 U.S.C.
2253(a)(1)(A)), I have further determined that these safeguard measures
will facilitate efforts by the domestic industry to make a positive
adjustment to import competition and provide greater economic and social
benefits than costs. If I determine that further action is appropriate
and feasible to facilitate efforts by the pertinent domestic industry to
make a positive adjustment to import competition and to provide greater
economic and social benefits than costs, or if I determine that the
conditions under section 204(b)(1) of the Trade Act are met, I shall
reduce, modify, or terminate the action established in this proclamation
accordingly. In addition, if I determine within 30 days of the date of
this proclamation, as a result of consultations between the United
States and other WTO members pursuant to Article 12.3 of the WTO
Agreement on Safeguards that it is necessary to reduce, modify, or
terminate a safeguard measure, I shall proclaim the corresponding
reduction, modification, or termination of the safeguard measure within
40 days.
15. 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, George W. Bush, 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
and 604 of the Trade Act, and section 301 of title 3, United States
Code, do proclaim that:
(1) In order to establish increases in duty and a tariff rate quota
on imports of the certain steel products described in paragraph 7 (other
than excluded products), subchapter III of chapter 99 of the HTS is
modified as provided in the Annex to this proclamation. Any merchandise
subject to a safeguard measure that is admitted into U.S. foreign trade
zones on or after March 20, 2002, must be admitted as ``privileged
foreign status'' as defined in 19 CFR 146.41, and will be subject upon
entry to any quantitative restrictions or tariffs related to the
classification under the applicable HTS subheading.
(2) Such imports of certain steel that are the product of Canada,
Israel, Jordan, or Mexico shall be excluded from the safeguard measures
established by this proclamation, and such imports shall not be counted
toward the tariff rate quota limits that trigger the over-quota rates of
duty.
(3) Except as provided in clause (4) below, imports of certain steel
that are the product of WTO member developing countries, as provided in
subdivision (d)(i) of Note 11 in
[[Page 359]]
the Annex to this proclamation, shall be excluded from the safeguard
measures established by this proclamation, and such imports shall not be
counted toward the tariff rate quota limits that trigger the over-quota
rates of duties.
(4) Clause (3) above shall not apply to imports of a product that is
the product of a country listed in subdivision (d)(i) of Note 11 in the
Annex to this proclamation if subdivision (d)(ii) of such Note indicates
that such country's share of total imports of the product exceeds 3
percent, or that imports of the product from all listed countries with
less than 3 percent import share collectively account for more than 9
percent of total imports of the product. The USTR is authorized to
determine whether a surge in imports of a product that is the product of
a country listed in subdivision (d)(i) undermines the effectiveness of
the pertinent safeguard measure and, if so, upon publication of a notice
in the Federal Register, to revise subdivision (d) of Note 11 in the
Annex to this proclamation to indicate that such product from such
country is not excluded from such safeguard measure.
(5) Within 120 days after the date of this proclamation, the USTR is
authorized to further consider any request for exclusion of a particular
product submitted in accordance with the procedures set out in 66 Fed.
Reg. 54321, 54322-54323 (October 26, 2001) and, upon publication in the
Federal Register of a notice of his finding that a particular product
should be excluded, to modify the HTS provisions created by the Annex to
this proclamation to exclude such particular product from the pertinent
safeguard measure established by this proclamation.
(6) In March of each year in which any safeguard measure established
by this proclamation remains in effect, the USTR is authorized, upon
publication in the Federal Register of a notice of his finding that a
particular product should be excluded, to modify the HTS provisions
created by the Annex to this proclamation to exclude such particular
product from the pertinent safeguard measure established by this
proclamation.
(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.
(8) The modifications to the HTS made by this proclamation,
including the Annex hereto, shall be effective with respect to goods
entered, or withdrawn from warehouse for consumption, on or after 12:01
a.m., EST, on March 20, 2002, and shall continue in effect as provided
in the Annex to this proclamation, unless such actions are earlier
expressly reduced, modified, or terminated. Effective at the close of
March 21, 2006, or such other date that is 1 year from the close of the
safeguard measures established in this proclamation, the U.S. note and
tariff provisions established in the Annex to this proclamation shall be
deleted from the HTS.
In Witness Whereof, I have hereunto set my hand this fifth day of
March, in the year of our Lord two thousand two, and of the Independence
of the United States of America the two hundred and twenty-sixth.
George W. Bush
[Filed with the Office of the Federal Register, 11:04 a.m., March 6,
2002]
Note: This proclamation was published in the Federal Register on March
7.