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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