For Immediate Release Office of the
Press Secretary March 5, 2002
Steel Products Proclamation To Facilitate
Positive Adjustment to Competition From Imports of Certain Steel
Products 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 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 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 9903.72.60 in the Annex to this
proclamation; hot-rolled steel provided for in the superior text to
subheadings 9903.72.62 through 9903.72.77 in the Annex to this
proclamation; cold-rolled steel provided for in the superior text to
subheadings 9903.72.80 through 9903.72.98 in the Annex to this
proclamation; and coated steel provided for in the superior text to
subheadings 9903.72.99 through 9903.73.14 in the Annex to this
proclamation;
(b) hot-rolled bar provided for in the superior text to
subheadings 9903.73.28 through 9903.73.38 in the Annex to this
proclamation;
(c) cold-finished bar provided for in the superior text to
subheadings 9903.73.39 through 9903.73.44 in the Annex to this
proclamation;
(d) rebar provided for in the superior text to subheadings
9903.73.45 through 9903.73.50 in the Annex to this proclamation;
(e) certain tubular products provided for in the superior text to
subheadings 9903.73.51 through 9903.73.62 in the Annex to this
proclamation;
(f) carbon and alloy fittings provided for in the superior text
to subheadings 9903.73.66 through 9903.73.72 in the Annex to this
proclamation;
(g) stainless steel bar provided for in the superior text to
subheadings 9903.73.74 through 9903.73.81 in the Annex to this
proclamation;
(h) stainless steel rod provided for in the superior text to
subheadings 9903.73.83 through 9903.73.89 in the Annex to this
proclamation;
(i) tin mill products provided for in the superior text to
subheadings 9903.73.15 through 9903.73.27 in the Annex to this
proclamation; and
(j) stainless steel wire provided for in the superior text to
subheadings 9903.73.91 through 9903.73.96 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 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 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
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