[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

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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

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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

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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.