, 3553-3562 [2018-01604]
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Federal Register / Vol. 83, No. 17 / Thursday, January 25, 2018 / Presidential Documents
3553
Presidential Documents
Proclamation 9694 of January 23, 2018
To Facilitate Positive Adjustment to Competition From Imports of Large Residential Washers
By the President of the United States of America
A Proclamation
1. On December 4, 2017, the United States International Trade Commission
(ITC) transmitted to the President a report (the ‘‘ITC 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 large residential washers
(‘‘washers’’). The product subject to the ITC’s investigation and determination
excluded certain washers described in the ITC Notice of Institution, 82
FR 27075 (June 13, 2017), and listed in subdivision (c)(2) of Note 17 in
the Annex to this proclamation.
2. The ITC reached an affirmative determination under section 202(b) of
the Trade Act (19 U.S.C. 2252(b)) 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) washers; and
(b) certain washer parts, including (i) all cabinets, or portions thereof,
designed for use in washers; (ii) all assembled tubs designed for use in
washers which incorporate, at a minimum, a tub and a seal; (iii) all assembled
baskets designed for use in washers which incorporate, at a minimum,
a side wrapper, a base, and a drive hub; and (iv) any combination of
the foregoing parts or subassemblies.
3. 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 of contribution to injury with
respect to imports of washers from Canada and Mexico.
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4. The ITC transmitted to the President its recommendations made pursuant
to section 202(e) of the Trade Act (19 U.S.C. 2252(e)) with respect to the
actions that, in its view, would address the serious injury, or threat of
serious injury, to the domestic industry and be most effective in facilitating
the efforts of the industry to make a positive adjustment to import competition.
5. 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 (19 U.S.C. 2253(a)(2)) and the ITC Report, I have determined
to implement action of a type described in section 203(a)(3) of the Trade
Act (19 U.S.C. 2252(a)(3)) (a ‘‘safeguard measure’’), with regard to the following washers and covered washer parts:
(a) washers provided for in subheadings 8450.11.00 and 8450.20.00 in
the Annex to this proclamation;
(b) all cabinets, or portions thereof, designed for use in washers, and
all assembled baskets designed for use in washers that incorporate, at a
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minimum, a side wrapper, a base, and a drive hub, provided for in subheading
8450.90.60 in the Annex to this proclamation;
(c) all assembled tubs designed for use in washers that incorporate, at
a minimum, a tub and a seal, provided for in subheading 8450.90.20 in
the Annex to this proclamation;
(d) any combination of the foregoing parts or subassemblies, provided
for in subheadings 8450.90.20 or 8450.90.60 in the Annex to this proclamation.
6. Pursuant to section 312(a) of the NAFTA Implementation Act (19 U.S.C.
3372(a)), I have determined after considering the ITC Report that (a) imports
from Canada of washers and covered washer parts, considered individually,
do not account for a substantial share of total imports and do not contribute
importantly to the serious injury or threat of serious injury found by the
ITC; and (b) imports from Mexico of washers and covered washer parts,
considered individually, account for a substantial share of total imports
and have contributed 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 washers
and covered washer parts that are the product of Canada from the actions
I am taking under section 203 of the Trade Act.
7. Pursuant to section 203 of the Trade Act, the action I have determined
to take shall be a safeguard measure in the form of:
(a) a tariff-rate quota on imports of washers described in subparagraph
(a) of paragraph 5 of this proclamation, imposed for a period of 3 years
plus 1 day, with unchanging within-quota quantities, annual reductions
in the rates of duties entered within those quantities in the second and
third years, 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) a tariff-rate quota on imports of covered washer parts described in
subparagraphs (b), (c), and (d) of paragraph 5 of this proclamation, imposed
for a period of 3 years plus 1 day, with increasing 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.
8. This safeguard measure shall apply to imports from all countries, except
for products of Canada and except as provided in paragraph 9 of this
proclamation.
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9. This safeguard measure shall not apply to imports of any product described
in paragraph 5 of this proclamation of a developing country that is a Member
of the World Trade Organization (WTO), as listed in subdivision (b)(2)
of Note 17 in the Annex to this proclamation, as long as such a 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 5 of this proclamation of a developing country that is a WTO
Member results in imports of that product from that developing country
exceeding either of the thresholds described in this paragraph, the safeguard
measure shall be modified to apply to such product from such country.
10. The in-quota quantity in each year under the tariff-rate quotas described
in paragraph 7 of this proclamation shall be allocated among all countries
except those countries the products of which are excluded from such tariffrate quota pursuant to paragraphs 8 and 9 of this proclamation.
11. Pursuant to section 203(a)(1)(A) of the Trade Act (19 U.S.C. 2253(a)(1)(A)),
I have determined that this safeguard measure 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
domestic industry to make a positive adjustment to import competition
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3555
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
(19 U.S.C. 2254(b)(1)) 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 the safeguard measure, I shall proclaim the corresponding reduction, modification, or termination of the safeguard measure
within 40 days.
12. If I determine that a surge in imports of covered washer parts described
in subparagraphs (b), (c), and (d) of paragraph 5 of this proclamation undermines the effectiveness of the safeguard measure, the safeguard measure
shall be modified by imposing a quantitative restriction in lieu of the tariffrate quota.
13. Section 604 of the Trade Act (19 U.S.C. 2483), authorizes the President
to embody in the Harmonized Tariff Schedule of the United States (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, DONALD J. TRUMP, 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, section 312 of the NAFTA Implementation
Act (19 U.S.C. 3372), 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 washers and covered washer parts described in paragraph 5 of
this proclamation (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 the safeguard measure that is admitted into
U.S. foreign trade zones on or after 12:01 a.m. eastern standard time,
on February 7, 2018, must be admitted as ‘‘privileged foreign status’’
as defined in 19 CFR 146.41, and will be subject upon entry for consumption to any quantitative restrictions or tariffs related to the classification
under the applicable HTS subheading.
(2) Imports of washers and covered washer parts that are the product
of Canada shall be excluded from the safeguard measure established in
this proclamation, and such imports shall not be counted toward the
tariff-rate quota limits that trigger the over-quota rates of duty.
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(3) Except as provided in clause (4) below, imports of washers and covered
washer parts that are the product of WTO Member developing countries,
as listed in subdivision (b)(2) of Note 17 in the Annex to this proclamation,
shall be excluded from the safeguard measure established in this proclamation, and such imports shall not be counted toward the tariff-rate quota
limits that trigger the over-quota rates of duties.
(4) If, after the safeguard measure established in this proclamation takes
effect, the United States Trade Representative (USTR) determines that:
(a) the share of total imports of the product of a country listed in subdivision (b)(2) of Note 17 in the Annex to this proclamation exceeds 3 percent,
(b) 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, or
(c) a country listed in subdivision (b)(2) of Note 17 in the Annex to
this proclamation is no longer a developing country for purposes of this
proclamation;
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the USTR is authorized, upon publication of a notice in the Federal
Register, to revise subdivision (b)(2) of Note 17 in the Annex to this proclamation to remove the relevant country from the list or suspend operation
of that subdivision, as appropriate.
(5) If, after the safeguard measure established in this proclamation takes
effect, the USTR determines that the out-of-quota quantity in units of
covered washer parts entered under the tariff lines in chapter 99 enumerated in the Annex to this proclamation has increased by an unjustifiable
amount and undermines the effectiveness of the safeguard measure, the
USTR is authorized, upon publishing a notice of such determination in
the Federal Register, to modify the HTS provisions created by the Annex
to this proclamation so as to modify the tariff-rate quota on covered
washer parts with a quantitative restriction on covered washer parts at
a level that the USTR considers appropriate.
(6) 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.
(7) The modifications to the HTS made in 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. eastern
standard time on February 7, 2018, and shall continue in effect as provided
in the Annex to this proclamation, unless such actions are earlier expressly
reduced, modified, or terminated. One year from the termination of the
safeguard measure 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 twenty-third
day of January, in the year of our Lord two thousand eighteen, and of
the Independence of the United States of America the two hundred and
forty-second.
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Federal Register / Vol. 83, No. 17 / Thursday, January 25, 2018 / Presidential Documents
3557
ANNEX
MODIFICATIONS TO CHAPTER 99 OF
THE HARMONIZED TARIFF SCHEDULE OF THE UNITED STATES
Effective with respect to goods entered, or withdrawn from warehouse for consumption,
on or after 12:01 a.m. eastern standard time on February 7, 2018, and through 11:59 p.m. eastern
standard time on February 7, 2021, subchapter III of chapter 99 ofthe Harmonized Tariff
Schedule of the United States (HTS) is hereby modified by inserting in numerical sequence the
following new U.S. note and provisions:
"17. (a)
Subheadings 9903.45.01 through 9903.45.06 and any superior texts thereto establish
temporary modifications applicable to entries of goods described herein and
classified in the enumerated provisions of chapter 84 of the tariff schedule.
Whenever any such subheading specifies that the annual aggregate quantity of such
goods shall not exceed the quantity established under the terms of this note, when
such goods are not the product of a country enumerated in subdivision (b) of this
note, any entry of such goods that is in excess of the quantity specified for such
provision shall be entered under the over-quota subheading set forth herein for such
goods. All such goods shall be subject to duty as provided herein, and such duties
shall be cumulative and imposed in addition to the rate of duty established for any
such goods in chapter 84 of the tariff schedule.
(b)
For the purposes of this note and the application of subheadings 9903.45.01 through
9903.45.06, inclusive, the following countries shall not be subject to the rates of duty
and tariff-rate quotas provided for herein:
Canada; and
(2)
the following developing countries that are members of the World Trade
Organization:
Afghanistan, Albania, Algeria, Angola, Armenia, Azerbaijan, Belize, Benin,
Bhutan, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Burkina Faso,
Burma, Burundi, Cambodia, Cameroon, Cape Verde, Central African
Republic, Chad, Comoros, Congo (Brazzaville), Congo (Kinshasa), Cote
d'Ivoire, Djibouti, Dominica, Ecuador, Egypt, Eritrea, Ethiopia, Fiji, Gabon,
The Gambia, Georgia, Ghana, Grenada, Guinea, Guinea-Bissau, Guyana,
Haiti, India, Indonesia, Iraq, Jamaica, Jordan, Kazakhstan, Kenya, Kiribati,
Kosovo, Kyrgyzstan, Lebanon, Lesotho, Liberia, Macedonia, Madagascar,
Malawi, Maldives, Mali, Mauritania, Mauritius, Moldova, Mongolia,
Montenegro, Mozambique, Namibia, Nepal, Niger, Nigeria, Pakistan, Papua
New Guinea, Paraguay, Philippines, Rwanda, Saint Lucia, Saint Vincent and
the Grenadines, Samoa, Sao Tome and Prin2014
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( 1)
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Annex, page 2
(c)
(1)
(2)
For the purposes of subheadings 9903.45.01 and 9903.45.02 of this subchapter,
"household-type (residential) washing machines, including machines which
both wash and dry, whether or not with a dry linen capacity exceeding 10 kg"
(such goods provided for in subheadings 8450.11.00 and 8450.20.00 and
reported under statistical reporting numbers 8450.11.0040, 8450.11.0080,
8450.20.0040 and 8450.20.0080, respectively, on the effective date of this
note) shall include the following goods: automatic clothes washing machines,
regardless of the orientation of the rotational axis, each with a cabinet width
(measured from its widest point) of at least 62.23 em and no more than 81.28
em, except as provided in this note.
Subheadings 9903.45.01 and 9903.45.02 shall not apply to the washing
· machines specified below:
(A)
all stacked washer-dryers and all commercial washers:
(i)
The term "stacked washer-dryers" denotes distinct washing and
drying machines that are built on a unitary frame and share a
common console that controls both the washer and the dryer.
(ii)
The term "commercial washer" denotes an automatic clothes
washing machine designed for the "pay per use" segment meeting
either of the following two definitions:
(aa) (I) it contains payment system electronics;
(II) it is configured with an externally mounted steel frame
at least 15.24 em high that is designed to house a coin/token
operated payment system (whether or not the actual
coin/token operated payment system is installed at the time
of importation);
(III) it contains a push button user interface with a
maximum of six manually selectable wash cycle settings,
with no ability of the end user to otherwise modify water
temperature, water level or spin speed for a selected wash
cycle setting; and
(IV) the console containing the user interface is made of
steel and is assembled with security fasteners; or
(II) the payment system electronics are enabled (whether or
not the payment acceptance device has been installed at the
time of importation) such that, in normal operation, the unit
cannot begin a wash cycle without first receiving a signal
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(bb) (I) it contains payment system electronics;
Federal Register / Vol. 83, No. 17 / Thursday, January 25, 2018 / Presidential Documents
3559
Annex, page 3
from a bona fide payment acceptance device such as an
electronic credit card reader;
(III) it contains a push button user interface with a
maximum of six manually selectable wash cycle settings,
with no ability of the end user to otherwise modify water
temperature, water level or spin speed for a selected wash
cycle setting; and
(IV) the console containing the user interface is made of
steel and is assembled with security fasteners.
(B)
automatic clothes washing machines that meet all of the following
conditions:
(i)
they have a vertical rotational axis,
(ii)
they are top loading; and
(iii) they have a drive train consisting, inter alia, of (aa) a permanent
split capacitor motor, (bb) a belt drive and (cc) a flat wrap spring
clutch.
(C)
automatic clothes washing machines that meet all of the following
conditions:
(i)
they have a horizontal rotational axis;
(ii)
they are front loading; and
(iii) they have a drive train consisting, inter alia, of (aa) a controlled
induction motor and (bb) a belt drive.
(D)
automatic clothes washing machines that meet all of the following
conditions:
(i)
they have a horizontal rotational axis;
(ii)
they are front loading; and
(iii) they have cabinet width (measured from its widest point) of more
than 72.39 em.
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For purposes of subheading 9903.45.01 of this subchapter, the duty rate in the Rates
of Duty !-General subcolumn (and in the Rates of Duty 2 column, as provided
therein) for goods entered under such subheading, and not the product of a country
enumerated in subdivision (b) of this note, shall be as follows, with the duty rates set
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(d)
3560
Federal Register / Vol. 83, No. 17 / Thursday, January 25, 2018 / Presidential Documents
Annex, page 4
forth herein applied in addition to those applicable under subheading 8450.11.00 or
8450.20.00:
If entered during the period from
February 7, 2018 through February 6, 2019 ..................................... 20%
If entered during the period from
.
February 7, 2019 through February 6, 2020 ..................................... 18%
If entered during the period from
February 7, 2020 through February 7, 2021 .................................... 16%.
(e)
For purposes of subheading 9903.45.02 of this subchapter, the duty rate in the Rates
of Duty 1-General subcolumn (and in the Rates of Duty 2 column, as provided
therein) for goods entered under such subheading, and not the product of a country
enumerated in subdivision (b) ofthis note, shall be as follows, with the duty rates set
forth herein applied in addition to those applicable under subheading 8450.11.00 or
8450.20.00:
If entered during the period from
February 7, 2018 through February 6, 2019 ..................................... 50%
If entered during the period from
February 7, 2019 through February 6, 2020 ..................................... 45%
If entered during the period from
February 7, 2020 through February 7, 2021 .................................... 40%.
(f)
For purposes of subheadings 9903.45.05 and 9903.45.06 of this subchapter, the term
"parts of household-type (residential) washing machines" shall include the following
goods provided for in subheading 8450.90.20 or 8450.90.60 of the tariff schedule:
(1)
all cabinets, or portions thereof, provided for in subheading 8450.90.60 and
designed for use in the washing machines defined in subdivision (c) of this note, the
foregoing which incorporate, at a minimum, (A) a side wrapper, (B) a base and (C) a
drive hub;
(2)
all assembled tubs provided for in subheading 8450.90.20 and designed for use
in such washing machines defined in such subdivision (c) which incorporate, at a
minimum: (A) a tub and (B) a seal; and
(3)
any combination of the foregoing parts or subassemblies, provided for in
subheading 8450.90.20 or 8540.90.60.
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For the purposes of subheading 9903.45.05 of this subchapter, the annual aggregate
quantity of all parts of household-type (residential) washing machines, as defined in
subdivision (f) above, that is eligible to enter under such subheading in any of the
periods enumerated below shall be as follows:
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(g)
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3561
Annex, page 5
If entered during the period from
February 7, 2018 through February 6, 2019 ......................... 50,000 units
If entered during the period from
February 7, 2019 through February 6, 2020 ......................... 70,000 units
If entered during the period from
February 7, 2020 through February 7, 2021 ........................ 90,000 units.
(h)
For purposes of subheading 9903.45.06 of this subchapter, the duty rate in the Rates
of Duty 1-General subcolumn (and in the Rates of Duty 2 column, as provided
therein) for goods entered in any of the periods enumerated below shall be as
follows, with the duty rates set forth herein applied in addition to those applicable
under subheading 8450.90.20 or 8450.90.60, as appropriate:
If entered during the period from
February 7, 2018 through February 6, 2019 ..................................... 50%
If entered during the period from
February 7, 2019 through February 6, 2020 ..................................... 45%
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If entered during the period from
February 7, 2020 through February 7, 2021 .................................... 40%.
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Annex, page 6
Rates of Duty
Article description
1
Heading/
Subheading
9903.45.01
General
Household-type (residential) washing machines, including
machines which both wash and dry, whether or not with a
dry linen capacity exceeding 10 kg (as defined in note 17(c)
to this subchapter and provided for in subheading
8450.11.00 or 8450.20.00), when entered from a country
other than a country enumerated in note 17(b) to this
subchapter:
If entered in an annual aggregate quantity not
exceeding 1,200,000 units, under the terms of such
note ....................................................................................
Other.................................................................................
9903.45.02
9903.45.05
Parts of household-type (residential) washing machines
(such machines described in subheading 9903.45.01 and
9903.45.02 and defined in note 17(c) to this subchapter),
such parts provided for in subheading 8450.90.20 or
8450.90.60 and enumerated in note 17(f) to this
subchapter, when entered from a country other than a
country specified in note 17(b) to this subchapter:
If entered in an annual aggregate quantity not
exceeding the quantity specified in note 17(g) to this
subchapter, under the terms of such note ...................
Other.................................................................................
Special
The duty
rate
provided in
note 17(d)
to this
subchapter
The duty
rate provided in
note 17(d)
to this
subchapter
+35%
The duty
rate provided in
note 17(e)
to this subchapter
The duty
rate provided in
note 17(e)
to this subchapter
+35%
No change
No change
The duty
rate set
forth in note
17(h) to this
subchapter
The duty
rate set
forth in note
17(h) to this
subchapter
+40%".
[FR Doc. 2018–01604
Filed 1–24–18; 2 p.m.]
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9903.45.06
2
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[Federal Register Volume 83, Number 17 (Thursday, January 25, 2018)]
[Presidential Documents]
[Pages 3553-3562]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-01604]
[GRAPHIC] [TIFF OMITTED] TD25JA18.043
[FR Doc. 2018-01604
Filed 1-24-18; 2 p.m.]
Billing code 7020-02-C