Adjusting Imports of Steel Into the United States, 13361-13365 [2018-06425]

Agencies

• Executive Office of the President

[Federal Register Volume 83, Number 60 (Wednesday, March 28, 2018)]
[Presidential Documents]
[Pages 13361-13365]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06425]




                        Presidential Documents 



Federal Register / Vol. 83 , No. 60 / Wednesday, March 28, 2018 / 
Presidential Documents

[[Page 13361]]


                Proclamation 9711 of March 22, 2018

                
Adjusting Imports of Steel Into the United States

                By the President of the United States of America

                A Proclamation

                1. On January 11, 2018, the Secretary of Commerce 
                (Secretary) transmitted to me a report on his 
                investigation into the effect of imports of steel mill 
                articles on the national security of the United States 
                under section 232 of the Trade Expansion Act of 1962, 
                as amended (19 U.S.C. 1862).

                2. In Proclamation 9705 of March 8, 2018 (Adjusting 
                Imports of Steel Into the United States), I concurred 
                in the Secretary's finding that steel mill articles are 
                being imported into the United States in such 
                quantities and under such circumstances as to threaten 
                to impair the national security of the United States, 
                and decided to adjust the imports of steel mill 
                articles, as defined in clause 1 of Proclamation 9705, 
                as amended by clause 8 of this proclamation (steel 
                articles), by imposing a 25 percent ad valorem tariff 
                on such articles imported from all countries except 
                Canada and Mexico.

                3. In proclaiming this tariff, I recognized that our 
                Nation has important security relationships with some 
                countries whose exports of steel articles to the United 
                States weaken our internal economy and thereby threaten 
                to impair the national security. I also recognized our 
                shared concern about global excess capacity, a 
                circumstance that is contributing to the threatened 
                impairment of the national security. I further 
                determined that any country with which we have a 
                security relationship is welcome to discuss with the 
                United States alternative ways to address the 
                threatened impairment of the national security caused 
                by imports from that country, and noted that, should 
                the United States and any such country arrive at a 
                satisfactory alternative means to address the threat to 
                the national security such that I determine that 
                imports from that country no longer threaten to impair 
                the national security, I may remove or modify the 
                restriction on steel articles imports from that country 
                and, if necessary, adjust the tariff as it applies to 
                other countries as the national security interests of 
                the United States require.

                4. The United States is continuing discussions with 
                Canada and Mexico, as well as the following countries, 
                on satisfactory alternative means to address the 
                threatened impairment to the national security by 
                imports of steel articles from those countries: the 
                Commonwealth of Australia (Australia), the Argentine 
                Republic (Argentina), the Republic of Korea (South 
                Korea), the Federative Republic of Brazil (Brazil), and 
                the European Union (EU) on behalf of its member 
                countries. Each of these countries has an important 
                security relationship with the United States and I have 
                determined that the necessary and appropriate means to 
                address the threat to the national security posed by 
                imports from steel articles from these countries is to 
                continue these discussions and to exempt steel articles 
                imports from these countries from the tariff, at least 
                at this time. Any country not listed in this 
                proclamation with which we have a security relationship 
                remains welcome to discuss with the United States 
                alternative ways to address the threatened impairment 
                of the national security caused by imports of steel 
                articles from that country.

                5. The United States has an important security 
                relationship with Australia, including our shared 
                commitment to supporting each other in addressing 
                national security concerns, particularly through our 
                security, defense, and

[[Page 13362]]

                intelligence partnership; the strong economic and 
                strategic partnership between our countries; our shared 
                commitment to addressing global excess capacity in 
                steel production; and the integration of Australian 
                persons and organizations into the national technology 
                and industrial base of the United States.

                6. The United States has an important security 
                relationship with Argentina, including our shared 
                commitment to supporting each other in addressing 
                national security concerns in Latin America, 
                particularly the threat posed by instability in 
                Venezuela; our shared commitment to addressing global 
                excess capacity in steel production; the reciprocal 
                investment in our respective industrial bases; and the 
                strong economic integration between our countries.

                7. The United States has an important security 
                relationship with South Korea, including our shared 
                commitment to eliminating the North Korean nuclear 
                threat; our decades-old military alliance; our shared 
                commitment to addressing global excess capacity in 
                steel production; and our strong economic and strategic 
                partnership.

                8. The United States has an important security 
                relationship with Brazil, including our shared 
                commitment to supporting each other in addressing 
                national security concerns in Latin America; our shared 
                commitment to addressing global excess capacity in 
                steel production; the reciprocal investment in our 
                respective industrial bases; and the strong economic 
                integration between our countries.

                9. The United States has an important security 
                relationship with the EU and its constituent member 
                countries, including our shared commitment to 
                supporting each other in national security concerns; 
                the strong economic and strategic partnership between 
                the United States and the EU, and between the United 
                States and EU member countries; and our shared 
                commitment to addressing global excess capacity in 
                steel production.

                10. In light of the foregoing, I have determined that 
                the necessary and appropriate means to address the 
                threat to the national security posed by imports of 
                steel articles from these countries is to continue 
                ongoing discussions and to increase strategic 
                partnerships, including those with respect to reducing 
                global excess capacity in steel production by 
                addressing its root causes. In my judgment, discussions 
                regarding measures to reduce excess steel production 
                and excess steel capacity, measures that will increase 
                domestic capacity utilization, and other satisfactory 
                alternative means will be most productive if the tariff 
                proclaimed in Proclamation 9705 on steel articles 
                imports from these countries is removed at this time.

                11. However, the tariff imposed by Proclamation 9705 
                remains an important first step in ensuring the 
                economic viability of our domestic steel industry and 
                removing the threatened impairment of the national 
                security. Without this tariff and the adoption of 
                satisfactory alternative means addressing long-term 
                solutions in ongoing discussions with the countries 
                listed as excepted in clause 1 of this proclamation, 
                the industry will continue to decline, leaving the 
                United States at risk of becoming reliant on foreign 
                producers of steel to meet our national security 
                needs--a situation that is fundamentally inconsistent 
                with the safety and security of the American people. As 
                a result, unless I determine by further proclamation 
                that the United States has reached a satisfactory 
                alternative means to remove the threatened impairment 
                to the national security by imports of steel articles 
                from a particular country listed as excepted in clause 
                1 of this proclamation, the tariff set forth in clause 
                2 of Proclamation 9705 shall be effective May 1, 2018, 
                for the countries listed as excepted in clause 1 of 
                this proclamation. In the event that a satisfactory 
                alternative means is reached such that I decide to 
                exclude on a long-term basis a particular country from 
                the tariff proclaimed in Proclamation 9705, I will also 
                consider whether it is necessary and appropriate in 
                light of our national security interests to make any 
                corresponding adjustments to the tariff set forth in 
                clause 2 of Proclamation 9705 as it applies to other 
                countries. Because the current tariff exemptions

[[Page 13363]]

                are temporary, however, I have determined that it is 
                necessary and appropriate to maintain the current 
                tariff level at this time.

                12. In the meantime, to prevent transshipment, excess 
                production, or other actions that would lead to 
                increased exports of steel articles to the United 
                States, the United States Trade Representative, in 
                consultation with the Secretary and the Assistant to 
                the President for Economic Policy, shall advise me on 
                the appropriate means to ensure that imports from 
                countries exempt from the tariff imposed in 
                Proclamation 9705 do not undermine the national 
                security objectives of such tariff. If necessary and 
                appropriate, I will consider directing U.S. Customs and 
                Border Protection (CBP) of the Department of Homeland 
                Security to implement a quota as soon as practicable, 
                and will take into account all steel articles imports 
                since January 1, 2018, in setting the amount of such 
                quota.

                13. Section 232 of the Trade Expansion Act of 1962, as 
                amended, authorizes the President to adjust the imports 
                of an article and its derivatives that are being 
                imported into the United States in such quantities or 
                under such circumstances as to threaten to impair the 
                national security.

                14. Section 604 of the Trade Act of 1974, as amended 
                (19 U.S.C. 2483), authorizes the President to embody in 
                the Harmonized Tariff Schedule of the United States 
                (HTSUS) the substance of statutes 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, by the authority vested in me 
                by the Constitution and the laws of the United States 
                of America, including section 232 of the Trade 
                Expansion Act of 1962, as amended, section 301 of title 
                3, United States Code, and section 604 of the Trade Act 
                of 1974, as amended, do hereby proclaim as follows:

                    (1) Imports of all steel articles, as defined in 
                clause 1 of Proclamation 9705, as amended by clause 8 
                of this proclamation, from the countries listed in this 
                clause shall be exempt from the duty established in 
                clause 2 of Proclamation 9705 until 12:01 a.m. eastern 
                daylight time on May 1, 2018. Further, clause 2 of 
                Proclamation 9705 is amended by striking the last two 
                sentences and inserting the following two sentences: 
                ``Except as otherwise provided in this proclamation, or 
                in notices published pursuant to clause 3 of this 
                proclamation, all steel articles imports specified in 
                the Annex shall be subject to an additional 25 percent 
                ad valorem rate of duty with respect to goods entered, 
                or withdrawn from warehouse for consumption, as 
                follows: (a) on or after 12:01 a.m. eastern daylight 
                time on March 23, 2018, from all countries except 
                Canada, Mexico, Australia, Argentina, South Korea, 
                Brazil, and the member countries of the European Union, 
                and (b) on or after 12:01 a.m. eastern daylight time on 
                May 1, 2018, from all countries. This rate of duty, 
                which is in addition to any other duties, fees, 
                exactions, and charges applicable to such imported 
                steel articles, shall apply to imports of steel 
                articles from each country as specified in the 
                preceding sentence.''.
                    (2) Paragraph (a) of U.S. note 16, added to 
                subchapter III of chapter 99 of the HTSUS by the Annex 
                to Proclamation 9705, is amended by replacing ``Canada 
                and of Mexico'' with ``Canada, of Mexico, of Australia, 
                of Argentina, of South Korea, of Brazil, and of the 
                member countries of the European Union''.
                    (3) The ``Article description'' for heading 
                9903.80.01 of the HTSUS is amended by replacing 
                ``Canada or of Mexico'' with ``Canada, of Mexico, of 
                Australia, of Argentina, of South Korea, of Brazil, or 
                of the member countries of the European Union''.
                    (4) The exemption afforded to steel articles from 
                Canada, Mexico, Australia, Argentina, South Korea, 
                Brazil, and the member countries of the EU shall apply 
                only to steel articles of such countries entered, or 
                withdrawn from warehouse for consumption, through the 
                close of April 30, 2018, at which

[[Page 13364]]

                time Canada, Mexico, Australia, Argentina, South Korea, 
                Brazil, and the member countries of the EU shall be 
                deleted from paragraph (a) of U.S. note 16 to 
                subchapter III of chapter 99 of the HTSUS and from the 
                article description of heading 9903.80.01 of the HTSUS.
                    (5) Any steel article that is admitted into a U.S. 
                foreign trade zone on or after 12:01 a.m. eastern 
                daylight time on March 23, 2018, may only be admitted 
                as ``privileged foreign status'' as defined in 19 CFR 
                146.41, and will be subject upon entry for consumption 
                to any ad valorem rates of duty related to the 
                classification under the applicable HTSUS subheading. 
                Any steel article that was admitted into a U.S. foreign 
                trade zone under ``privileged foreign status'' as 
                defined in 19 CFR 146.41, prior to 12:01 a.m. eastern 
                daylight time on March 23, 2018, will likewise be 
                subject upon entry for consumption to any ad valorem 
                rates of duty related to the classification under 
                applicable HTSUS subheadings imposed by Proclamation 
                9705, as amended by this proclamation.
                    (6) Clause 3 of Proclamation 9705 is amended by 
                inserting a new third sentence reading as follows: 
                ``Such relief may be provided to directly affected 
                parties on a party-by-party basis taking into account 
                the regional availability of particular articles, the 
                ability to transport articles within the United States, 
                and any other factors as the Secretary deems 
                appropriate.''.
                    (7) Clause 3 of Proclamation 9705, as amended by 
                clause 6 of this proclamation, is further amended by 
                inserting a new fifth sentence as follows: ``For 
                merchandise entered on or after the date the directly 
                affected party submitted a request for exclusion, such 
                relief shall be retroactive to the date the request for 
                exclusion was posted for public comment.''.
                    (8) The reference to ``7304.10'' in clause 1 of 
                Proclamation 9705, is amended to read ``7304.11''.
                    (9) The Secretary, in consultation with CBP and 
                other relevant executive departments and agencies, 
                shall revise the HTSUS so that it conforms to the 
                amendments and effective dates directed in this 
                proclamation. The Secretary shall publish any such 
                modification to the HTSUS in the Federal Register.
                    (10) 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.

[[Page 13365]]

                IN WITNESS WHEREOF, I have hereunto set my hand this 
                twenty-second day of March, 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.
                
                
                    (Presidential Sig.)

[FR Doc. 2018-06425
Filed 3-27-18; 11:15 am]
Billing code 3295-F8-P