Adjusting Imports of Derivative Aluminum Articles and Derivative Steel Articles Into the United States, 5281-5293 [2020-01806]

Agencies

• Executive Office of the President

[Federal Register Volume 85, Number 19 (Wednesday, January 29, 2020)]
[Presidential Documents]
[Pages 5281-5293]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01806]



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Vol. 85

Wednesday,

No. 19

January 29, 2020

Part II





The President





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Proclamation 9980--Adjusting Imports of Derivative Aluminum Articles 
and Derivative Steel Articles Into the United States



Proclamation 9981--National Day of Remembrance of the 75th Anniversary 
of the Liberation of Auschwitz, 2020



Proclamation 9982--National School Choice Week, 2020


                        Presidential Documents 



Federal Register / Vol. 85 , No. 19 / Wednesday, January 29, 2020 / 
Presidential Documents

___________________________________________________________________

Title 3--
The President

[[Page 5281]]

                Proclamation 9980 of January 24, 2020

                
Adjusting Imports of Derivative Aluminum Articles 
                and Derivative Steel Articles 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 
                articles on the national security of the United States, 
                and on January 19, 2018, the Secretary transmitted to 
                me a report on his investigation into the effect of 
                imports of aluminum articles on the national security 
                of the United States. Both reports were issued pursuant 
                to section 232 of the Trade Expansion Act of 1962, as 
                amended (19 U.S.C. 1862).

                2. In Proclamation 9704 of March 8, 2018 (Adjusting 
                Imports of Aluminum Into the United States), and 
                Proclamation 9705 of March 8, 2018 (Adjusting Imports 
                of Steel Into the United States), I concurred in the 
                Secretary's findings that aluminum articles and steel 
                articles were 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. I therefore decided to adjust the imports of 
                aluminum articles, as defined in clause 1 of 
                Proclamation 9704, as amended, by imposing a 10 percent 
                ad valorem tariff on such articles imported from most 
                countries, beginning March 23, 2018. I also decided to 
                adjust the imports of steel articles, as defined in 
                clause 1 of Proclamation 9705, as amended, by imposing 
                a 25 percent ad valorem tariff on such articles 
                imported from most countries, beginning March 23, 2018.

                3. In Proclamation 9758 of May 31, 2018 (Adjusting 
                Imports of Aluminum Into the United States), I decided 
                to further adjust imports of aluminum articles by 
                imposing quotas on such articles from the Argentine 
                Republic (Argentina). In Proclamation 9740 of April 30, 
                2018 (Adjusting Imports of Steel Into the United 
                States), I decided to adjust imports of steel articles 
                by imposing quotas on such articles from the Republic 
                of Korea (South Korea), and in Proclamation 9759 of May 
                31, 2018 (Adjusting Imports of Steel Into the United 
                States), I decided to adjust imports of steel articles 
                by imposing quotas on such articles from Argentina and 
                the Republic of Brazil (Brazil).

                4. In Proclamation 9704 and Proclamation 9705, I 
                directed the Secretary to monitor imports of aluminum 
                articles and steel articles, respectively, and inform 
                me of any circumstances that in the Secretary's opinion 
                might indicate the need for further action under 
                section 232 of the Trade Expansion Act of 1962, as 
                amended.

                5. The Secretary has informed me that domestic steel 
                producers' capacity utilization has not stabilized for 
                an extended period of time at or above the 80 percent 
                capacity utilization level identified in his report as 
                necessary to remove the threatened impairment of the 
                national security. Stabilizing at that level is 
                important to provide the industry with a reasonable 
                expectation that market conditions will prevail long 
                enough to justify the investment necessary to ramp up 
                production to a sustainable and profitable level. 
                Capacity utilization in the aluminum industry has 
                improved, but it is still below the target capacity 
                utilization that the Secretary recommended in his 
                report. Although imports of aluminum articles and steel 
                articles have declined

[[Page 5282]]

                since the imposition of the tariffs and quotas, the 
                Secretary has informed me that imports of certain 
                derivatives of aluminum articles and imports of certain 
                derivatives of steel articles have significantly 
                increased since the imposition of the tariffs and 
                quotas. The net effect of the increase of imports of 
                these derivatives has been to erode the customer base 
                for U.S. producers of aluminum and steel and undermine 
                the purpose of the proclamations adjusting imports of 
                aluminum and steel articles to remove the threatened 
                impairment of the national security.

                6. The derivative articles the Secretary identified are 
                described in Annex I (aluminum) and Annex II (steel) to 
                this proclamation. For purposes of this proclamation, 
                the Secretary determined that an article is 
                ``derivative'' of an aluminum article or steel article 
                if all of the following conditions are present: (a) the 
                aluminum article or steel article represents, on 
                average, two-thirds or more of the total cost of 
                materials of the derivative article; (b) import volumes 
                of such derivative article increased year-to-year since 
                June 1, 2018, following the imposition of the tariffs 
                in Proclamation 9704 and Proclamation 9705, as amended 
                by Proclamation 9739 and Proclamation 9740, 
                respectively, in comparison to import volumes of such 
                derivative article during the 2 preceding years; and 
                (c) import volumes of such derivative article following 
                the imposition of the tariffs exceeded the 4 percent 
                average increase in the total volume of goods imported 
                into the United States during the same period since 
                June 1, 2018. The modifications to subchapter III of 
                chapter 99 of the Harmonized Tariff Schedule of the 
                United States described in Annex I (aluminum) and Annex 
                II (steel) to this proclamation implement the 
                Secretary's determinations in this regard.

                7. From June 2018 to May 2019, import volumes of steel 
                nails, tacks, drawing pins, corrugated nails, staples, 
                and similar derivative articles increased by 33 
                percent, compared to June 2017 to May 2018, and 
                increased by 29 percent, compared to June 2016 to May 
                2017. From January 2019 to November 2019, import 
                volumes of such articles increased by 23 percent, 
                compared to the same period in 2017. Similarly, from 
                June 2018 to May 2019, import volumes of aluminum 
                stranded wire, cables, plaited bands, and the like 
                (including slings and similar derivative articles) 
                increased by 152 percent, compared to June 2017 to May 
                2018, and increased by 52 percent, compared to June 
                2016 to May 2017. From January 2019 to November 2019, 
                import volumes of such articles increased by 127 
                percent, compared to the same period in 2017. Finally, 
                from June 2018 to May 2019, import volumes of bumper 
                and body stampings of aluminum and steel for motor 
                vehicles and tractors increased by 38 percent, compared 
                to June 2017 to May 2018, and increased by 56 percent, 
                compared to June 2016 to May 2017. From January 2019 to 
                November 2019, import volumes of such articles 
                increased by 37 percent, compared to the same period in 
                2017.

                8. It is the Secretary's assessment that foreign 
                producers of these derivative articles have increased 
                shipments of such articles to the United States to 
                circumvent the duties on aluminum articles and steel 
                articles imposed in Proclamation 9704 and Proclamation 
                9705, and that imports of these derivative articles 
                threaten to undermine the actions taken to address the 
                risk to the national security of the United States 
                found in Proclamation 9704 and Proclamation 9705. As 
                detailed in the Secretary's reports, domestic 
                production capacity to produce aluminum articles and 
                steel articles for national defense and critical 
                infrastructure is essential to United States national 
                security. This domestic production capacity is used to 
                provide the essential inputs of aluminum and steel used 
                in derivative aluminum articles and derivative steel 
                articles. The Secretary has assessed that reducing 
                imports of the derivative articles described in Annex I 
                and Annex II to this proclamation would reduce 
                circumvention and facilitate the adjustment of imports 
                that Proclamation 9704 and Proclamation 9705, as 
                amended, made to increase domestic capacity utilization 
                to address the threatened impairment of the national 
                security of the United States.

[[Page 5283]]

                9. Based on the Secretary's assessments, I have 
                concluded that it is necessary and appropriate in light 
                of our national security interests to adjust the 
                tariffs imposed by previous proclamations to apply to 
                the derivatives of aluminum articles and steel articles 
                described in Annex I and Annex II to this proclamation. 
                This action is necessary and appropriate to address 
                circumvention that is undermining the effectiveness of 
                the adjustment of imports made in Proclamation 9704 and 
                Proclamation 9705, as amended, and to remove the 
                threatened impairment of the national security of the 
                United States found in those proclamations.

                10. 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 of the United States.

                11. 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) In order to establish increases in the duty 
                rate on imports of certain derivative articles, 
                subchapter III of chapter 99 of the HTSUS is modified 
                as provided in Annex I and Annex II to this 
                proclamation. Except as otherwise provided in this 
                proclamation, all imports of derivative aluminum 
                articles specified in Annex I to this proclamation 
                shall be subject to an additional 10 percent ad valorem 
                rate of duty, and all imports of derivative steel 
                articles specified in Annex II to this proclamation 
                shall be subject to an additional 25 percent ad valorem 
                rate of duty, with respect to goods entered for 
                consumption, or withdrawn from warehouse for 
                consumption, on or after 12:01 a.m. eastern standard 
                time on February 8, 2020. These rates of duty, which 
                are in addition to any other duties, fees, exactions, 
                and charges applicable to such imported derivative 
                aluminum articles or steel articles, shall apply to 
                imports of derivative aluminum articles described in 
                Annex I to this proclamation from all countries except 
                Argentina, the Commonwealth of Australia (Australia), 
                Canada, and the United Mexican States (Mexico) and to 
                imports of derivative steel articles described in Annex 
                II to this proclamation from all countries except 
                Argentina, Australia, Brazil, Canada, Mexico, and South 
                Korea. The Secretary shall continue to monitor imports 
                of the derivative articles described in Annex I and 
                Annex II to this proclamation, and shall, from time to 
                time, in consultation with the United States Trade 
                Representative (USTR), review the status of such 
                imports with respect to the national security of the 
                United States. In the event of a surge of imports of 
                any derivative article described in Annex I or Annex II 
                to this proclamation from any excepted country, the 
                Secretary, with the concurrence of the USTR, is 
                authorized to extend application of the tariff imposed 
                by this proclamation on imports of any derivative 
                article experiencing such surge from such country, or 
                to adopt appropriate quotas for imports of such 
                derivative article from such country, or to negotiate a 
                voluntary agreement with such country to ensure that 
                imports of such derivative article from such country do 
                not undermine the effectiveness of the adjustment of 
                imports made in Proclamation 9704 and Proclamation 
                9705, as amended. The Secretary shall publish such 
                action in the Federal Register and notification shall 
                be provided to U.S. Customs and Border Protection (CBP) 
                of the Department of Homeland Security.

[[Page 5284]]

                    (2) The Secretary, in consultation with the 
                Secretary of State, the Secretary of the Treasury, the 
                Secretary of Defense, the USTR, the Assistant to the 
                President for National Security Affairs, the Assistant 
                to the President for Economic Policy, and such other 
                senior executive branch officials as the Secretary 
                deems appropriate, is hereby authorized to provide 
                relief from the additional duties set forth in clause 1 
                of this proclamation for any derivative article 
                determined not to be produced in the United States in a 
                sufficient and reasonably available amount or of a 
                satisfactory quality and is also authorized to provide 
                such relief based upon specific national security 
                considerations. Such relief shall be provided for a 
                derivative article only after a request for exclusion 
                is made by a directly affected party located in the 
                United States. If the Secretary determines that a 
                particular derivative article should be excluded, the 
                Secretary shall publicly post such determination and 
                notify CBP concerning such article so that it will be 
                excluded from the duties described in clause 1 of this 
                proclamation. For merchandise entered for consumption, 
                or withdrawn from warehouse for consumption, on or 
                after the date the duty established under this 
                proclamation is effective and with respect to which 
                liquidation is not final, such relief shall be 
                retroactive to the date the request for relief was 
                accepted by the Department of Commerce.
                    (3) Any derivative article described in Annex I or 
                Annex II to this proclamation, except those eligible 
                for admission under ``domestic status'' as defined in 
                19 CFR 146.43, that is subject to the duty imposed by 
                clause 1 of this proclamation and that is admitted into 
                a U.S. foreign trade zone on or after 12:01 a.m. 
                eastern standard time on February 8, 2020, 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 derivative article that is described in 
                Annex I or Annex II to this proclamation, except those 
                eligible for admission under ``domestic status'' as 
                defined in 19 CFR 146.43, that is subject to the duty 
                imposed by clause 1 of this proclamation, and 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 standard time on 
                February 8, 2020, will likewise be subject upon entry 
                for consumption to any ad valorem rates of duty related 
                to the classification under the applicable HTSUS 
                subheading added by this proclamation.
                    (4) Derivative articles shall not be subject upon 
                entry for consumption to the duty established in clause 
                1 of this proclamation merely by reason of manufacture 
                in a U.S. foreign trade zone. However, derivative 
                articles admitted into a U.S. foreign trade zone in 
                ``privileged foreign status'' pursuant to clause 3 of 
                this proclamation shall retain that status consistent 
                with 19 CFR 146.41(e).
                    (5) No drawback shall be available with respect to 
                the duties imposed on any derivative article imposed by 
                clause 1 of this proclamation.
                    (6) 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.
                    (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.

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                IN WITNESS WHEREOF, I have hereunto set my hand this 
                twenty-fourth day of January, in the year of our Lord 
                two thousand twenty, and of the Independence of the 
                United States of America the two hundred and forty-
                fourth.
                
                
                    (Presidential Sig.)

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[FR Doc. 2020-01806
Filed 1-28-20; 11:15 a.m.]
Billing code 7020-02-C