Steel Import Monitoring and Analysis System, 1183-1185 [2016-31667]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 82, Number 3 (Thursday, January 5, 2017)]
[Rules and Regulations]
[Pages 1183-1185]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31667]


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DEPARTMENT OF COMMERCE

International Trade Administration

19 CFR Part 360

RIN 0625-AB09


Steel Import Monitoring and Analysis System

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

ACTION: Final rule.

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SUMMARY: The Department of Commerce (the Department) is extending the 
Steel Import Monitoring and Analysis (SIMA) system until March 21, 
2022. The purpose of the SIMA system is to provide to the public 
statistical data on steel imports entering the United States roughly 
five weeks earlier than it would otherwise be available. Aggregate data 
collected from the steel import licenses are made available to the 
public on a weekly basis following review by the Department.

DATES: Effective March 21, 2017.

FOR FURTHER INFORMATION CONTACT: For information about the SIMA system, 
please contact Julie Al-Saadawi (202) 482-1930 or Michael Rollin (202) 
482-4978.

SUPPLEMENTARY INFORMATION: 

Background

    The SIMA system has operated under its current authority since 
March 21, 2005. Prior to that date, authority for steel import 
licensing and monitoring was derived from Proclamation 7529 of March 5, 
2002 (67 FR 10553). Pursuant to sections 201 and 203 of the 1974 Trade 
Act, 19 U.S.C. 2251, 2253, Proclamation 7529 implemented safeguard 
measures with respect to certain imported steel products, placing 
temporary tariffs on these steel imports and providing the steel 
industry time to restructure. The monitoring system outlined in 
Proclamation 7529 required all importers of steel products to obtain a 
license from the Department prior to completing their customs entry 
summary documentation. This provided a monitoring tool to ensure that 
the effectiveness of the steel safeguard measures was not undermined by 
large quantities of imports originating from countries that were 
excluded from the tariffs.
    In Proclamation 7741 of December 4, 2003 (68 FR 68483), the 
President terminated the steel safeguard measures, but directed the 
Secretary of Commerce to continue the monitoring system until the 
earlier of March 21, 2005, or such time as the Secretary of Commerce 
established a replacement program. On December 9, 2003, the Department 
published a notice stating that the system would continue in effect as 
described in Proclamation 7741 until March 21, 2005 (68 FR 68594). On 
August 25, 2004, the Department published an advance notice of proposed 
rulemaking soliciting comments from the public on whether to continue 
the monitoring system beyond March 21, 2005 (69 FR 52211). The 
Department changed the program's name from the Steel Import Licensing 
and Surge Monitoring program to the Steel Import Monitoring and 
Analysis (SIMA) system. The name change was notified in the publication 
of the August 2004 advance notice (69 FR 52211). On March 11, 2005, the 
Department published an interim final rule responding to the comments 
received from the public and implementing a slightly expanded version 
of SIMA until March 21, 2009. That interim final rule was followed by 
the publication of the final rule on December 5, 2005 (70 FR 72373).
    On December 12, 2008, a proposed rule was published in the Federal 
Register (73 FR 75624) seeking an extension of the SIMA system through 
March 21, 2013 and asking for comments from the public. The Department 
received twelve submissions, all of which expressed support for the 
extension. On March 18,

[[Page 1184]]

2009, the Department issued the final rule (74 FR 11474) to extend the 
application of the SIMA system until March 21, 2013. On November 13, 
2012 (77 FR 67593), the Department published a proposed rule seeking 
comments on an extension of the SIMA system through March 21, 2017. The 
Department received three submissions, all of which expressed support 
for the extension. The Department issued the final rule to extend the 
application of the SIMA system until March 21, 2017 (78 FR 11090). On 
October 13, 2016, the Department published a proposed rule seeking 
comments on an extension of the SIMA system through March 21, 2022 (81 
FR 70650). The Department received two submissions, both of which 
expressed support for the extension. The Department is issuing this 
final rule to extend the application of the SIMA system until March 21, 
2022. The sole change included in this final rule was extending the 
program's lifespan to five years (the program's previous lifespan was 
four years--at which time an extension of the program must be 
proposed).
    The purpose of the SIMA system is to provide steel producers, steel 
consumers, importers, and the general public with accurate and timely 
information on anticipated imports of certain steel products. Import 
licenses, obtained through the Internet-based SIMA licensing system, 
are required for U.S. imports of basic steel mill products. Aggregate 
import data obtained from the licenses are updated weekly and posted on 
the SIMA Web site monitor. Details of the current system can be found 
at https://enforcement.trade.gov/steel/license/.

Response to Comments

    Submissions received during the public comment period established 
in the proposed rule have been considered in preparing this final rule. 
Two submissions were received, one from a coalition of nine steel trade 
groups (referred to as the ``industry''), and one from a large steel-
producing company in the United States, AK Steel Corporation. Both of 
the submissions supported the five-year extension and agreed that the 
system is a critical tool that helps the industry closely monitor steel 
imports. The comments are summarized below. The two submissions 
received are posted on the Federal rulemaking portal at 
www.Regulations.gov as well as on the SIMA Web site at https://enforcement.trade.gov/steel/license/.
    Comment 1: Commenters strongly support the extension of the SIMA 
system for an additional five years. They state that given the current 
global overcapacity in steel that is fueling surges in steel imports, 
the SIMA system gives the public access to the timeliest information 
possible regarding import patterns and changes, particularly increases 
in volumes. They also view the system as an important and transparent 
tool to support rational decision-making by all interested parties--
steel producers, steel consumers, importers and U.S. government 
officials.
    Response: The Department agrees that the SIMA system provides the 
public valuable and timely information on steel mill imports. The 
Department also agrees that making aggregate import volume and pricing 
data drawn from the licenses publicly available provides all interested 
stakeholders with a more informed understanding of changing market 
conditions in a transparent manner.
    Comment 2: Commenters state that there is no significant burden on 
the steel importing community to comply with the licensing requirements 
of the SIMA system, and that this has been confirmed over the last 12 
years in its current format, which remains unchanged by the proposed 
rule.
    Response: The Department agrees that there is no significant burden 
on steel importers arising out of SIMA system licensing requirements. 
The web-based licensing system is automatic and free of charge. The 
Department estimates that it continues to take no longer than ten 
minutes to complete the automated license form, and for most 
applicants, the time spent is much less.
    Comment 3: Commenters suggest that the Department make the SIMA 
system permanent rather than extend it for another five years. They 
state that the system has proven its effectiveness as an important 
analytical tool for both steel producers and consumers.
    Response: Broad authority to collect information on imports is 
granted to the Secretary of Commerce and delegated to the Director of 
the Bureau of the Census. When the original safeguard authority for the 
SIMA system granted by the President expired in March 2005, the system 
was continued pursuant to this Department of Commerce information 
collection authority (13 U.S.C. 301(a) and 302). For purposes of 
administering the SIMA system, this authority was temporarily 
transferred from the Director of the Census Bureau to the Under 
Secretary for International Trade for four years. One of the conditions 
of the temporary transfer of authority to the Under Secretary for 
International Trade was that any future periodic extension of the SIMA 
system be notified to the Secretary and subject to review. Therefore, 
establishment of a permanent system is not possible under current 
authority.
    For the reasons discussed above, the proposed rule (19 CFR part 
360) is made final without changes.

Classification

Executive Order 12866

    This rule has been determined to be not significant for purposes of 
Executive Order 12866.

Executive Order 13132

    This rule does not contain policies with federalism implications as 
that term is defined in Executive Order 13132.

Regulatory Flexibility Act.

    The Chief Counsel for Regulation of the Department of Commerce 
certified to the Chief Counsel for Advocacy of the Small Business 
Administration at the proposed rule stage, that this rule, if adopted, 
would not have a significant economic impact on a substantial number of 
small entities as that term is defined in the Regulatory Flexibility 
Act, 5 U.S.C. 601 et seq. The factual basis for the certification is 
found in the proposed rule and is not repeated here. No comments were 
received on the certification or the economic impacts of this action. 
As a result, no final regulatory flexibility analysis is required and 
none was prepared.

Paperwork Reduction Act

    This final rule contains collection-of-information requirements 
subject to review and approval by the Office of Management and Budget 
(OMB) under the Paperwork Reduction Act (PRA). These requirements have 
been approved by OMB (OMB No. 0625-0245; Expiration Date: 1/31/2018). 
Public reporting for this collection of information is estimated to be 
less than ten minutes per response, including the time for reviewing 
instructions and completing and reviewing the collection of 
information. All responses to this collection of information are 
voluntary, and will be provided confidentially to the extent allowed by 
law.
    Notwithstanding any other provision of law, no person is required 
to respond to, nor shall any person be subject to a penalty for failure 
to comply with, a collection of information subject to the Paperwork 
Reduction Act unless that collection displays a currently valid OMB 
Control Number.

List of Subjects in 19 CFR Part 360

    Administrative practice and procedure, Business and industry,

[[Page 1185]]

Imports, Reporting and recordkeeping requirements, Steel.

    Dated: December 23, 2016.
Paul Piquado,
Assistant Secretary for Enforcement & Compliance.

    For reasons discussed in the preamble, 19 CFR part 360 is amended 
as follows:

PART 360--STEEL IMPORT MONITORING AND ANALYSIS SYSTEM

0
1. The authority citation for part 360 continues to read as follows:

     Authority: 13 U.S.C. 301(a) and 302.

0
2. Section 360.105 is revised to read as follows:


Sec.  360.105  Duration of the steel import licensing requirement.

    The licensing program will be in effect through March 21, 2022, but 
may be extended upon review and notification in the Federal Register 
prior to this expiration date. Licenses will be required on all subject 
imports entered during this period, even if the entry summary documents 
are not filed until after the expiration of this program. The licenses 
will be valid for 10 business days after the expiration of this program 
to allow for the final filing of required Customs documentation.

[FR Doc. 2016-31667 Filed 1-4-17; 8:45 am]
 BILLING CODE 3510-DS-P