, 54877-54882 [2020-19595]
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54877
Presidential Documents
Federal Register
Vol. 85, No. 171
Wednesday, September 2, 2020
Title 3—
Proclamation 10064 of August 28, 2020
The President
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 (steel 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). The Secretary found and advised me of his opinion that 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.
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 articles,
as defined in clause 1 of Proclamation 9705, as amended by clause 8 of
Proclamation 9711 of March 22, 2018 (Adjusting Imports of Steel Into the
United States), 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, and decided to adjust the imports of these steel articles
by imposing a 25 percent ad valorem tariff on such articles imported from
most countries.
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3. In Proclamation 9705, I further stated 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 article 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. In Proclamation 9740 of April 30, 2018 (Adjusting Imports of Steel Into
the United States), I noted that the United States had agreed in principle
with the Federative Republic of Brazil (Brazil) on satisfactory alternative
means to address the threatened impairment to our national security posed
by steel articles imported from Brazil. In Proclamation 9759 of May 31,
2018 (Adjusting Imports of Steel Into the United States), I noted that the
United States had agreed on measures with Brazil that would provide effective, long-term alternative means to address Brazil’s contribution to the
threatened impairment to our national security. These included quantitative
limitations that restrict the volume of steel articles imported into the United
States from Brazil. In light of these agreed-upon measures, I determined
that steel article imports from Brazil would no longer threaten to impair
the national security and decided to exclude Brazil from the tariff proclaimed
in Proclamation 9705, as amended. I further noted that the United States
would monitor the implementation and effectiveness of those measures to
address our national security needs.
5. In Proclamation 9759, I also directed the Secretary to monitor implementation of quantitative limitations applicable to steel article imports from Brazil
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and inform me of any circumstance that in the Secretary’s opinion might
indicate that an adjustment of the quantitative limitations is necessary.
6. The Secretary has advised me that there have been significant changes
in the United States steel market since the time I decided to exclude,
on a long-term basis, Brazil from the tariff proclaimed in Proclamation
9705, as amended. The United States steel market has contracted in 2020.
After increasing in 2018 and 2019, steel shipments by domestic producers
through June of this year are approximately 15 percent lower than shipments
for the same time period in 2019, with shipments in April and May of
this year more than 30 percent lower than the shipments in the same
months in 2019. The Secretary has further advised me that domestic producers’ adjusted year-to-date capacity utilization rate through August 15,
2020, is below 70 percent and that the current rate has been near or below
60 percent since the second week of April. Brazil is also the second largest
source of steel imports to the United States and the largest source of imports
of semi-finished steel products. Moreover, imports from most countries have
declined this year in a manner commensurate with this contraction, whereas
imports from Brazil have decreased only slightly.
7. In light of these significantly changed market conditions, I have determined
that the alternative measures regarding Brazilian steel imports, without any
modifications, will be ineffective in eliminating the threat to the national
security posed by imports of such articles, in the current environment.
The United States and Brazil have held consultations regarding Brazil’s
steel exports to the United States. As a result of these discussions, the
United States will lower, for the remainder of 2020, one of the quantitative
limitations set forth in Proclamation 9759 applicable to certain steel articles
imported from Brazil. In my judgment, this modification will preserve the
effectiveness of the alternative means to address the threatened impairment
to our national security by further restraining steel article exports to the
United States from Brazil during this period of market contraction. In light
of this modification, I have determined that steel article imports from Brazil
will not threaten to impair the national security and thus have decided
to continue to exclude Brazil from the tariff proclaimed in Proclamation
9705, as amended. The United States and Brazil will hold further consultations in December 2020 to discuss the state of the steel trade between
the two countries in light of then-prevailing market conditions.
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8. I have been informed that a reduction in this quantitative limitation
set forth in Proclamation 9759 applicable to certain steel article imports
from Brazil may delay or disrupt specific production activities in the United
States for which imports of the steel articles covered by the quantitative
limitation have already been contracted for delivery in the fourth quarter
of this year. In light of these circumstances, and after considering the impact
on the economy and the national security objectives of section 232 of the
Trade Expansion Act of 1962, as amended, I have determined to direct
the Secretary to provide relief from the quantitative limitation set forth
in this proclamation in certain limited circumstances specified in more
detail below, in addition to the relief from the quantitative limitations that
the Secretary is already authorized to provide pursuant to clause 1 of Proclamation 9777 of August 29, 2018 (Adjusting Imports of Steel Into the United
States).
9. 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.
10. 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.
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54879
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) For purposes of administering the quantitative limitation applicable
to subheading 9903.80.57 of subchapter III of chapter 99 of the HTSUS
for Brazil, the annual aggregate limit for Brazil set out in the Annex to
this proclamation shall apply for calendar year 2020. This aggregate limit,
which shall take into account all steel article imports from Brazil covered
by this subheading since January 1, 2020, shall be effective for steel articles
entered for consumption, or withdrawn from warehouse for consumption,
under this subheading, between August 28, 2020 and December 31, 2020.
For calendar year 2021 and for subsequent years, the annual aggregate limit
for Brazil shall revert to the aggregate limit for Brazil set forth in the
Annex to Proclamation 9759, unless that limit is further modified or terminated.
(2) The Secretary shall, on an expedited basis, grant relief from the quantitative limitation applicable to subheading 9903.80.57 of subchapter III of
chapter 99 of the HTSUS for Brazil, as set out in the Annex to this proclamation, for any steel article where (i) the party requesting relief entered into
a contract or other written agreement for the production and shipment
of such steel article before August 28, 2020; (ii) such agreement specifies
the quantity of such steel article that is to be produced and shipped to
the United States prior to December 31, 2020; (iii) such steel article is
to be used in production activities in the United States and such steel
article cannot be procured from another supplier to meet the delivery schedule and specifications contained in such agreement; and (iv) lack of relief
from the quantitative limitation on such steel article would significantly
disrupt the production activity in the United States for which the steel
article specified in such agreement is intended. The volume of imports
for which the Secretary grants relief under this clause shall not exceed
60,000,000 kilograms in the aggregate.
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(3) The Secretary shall grant relief under clause 2 of this proclamation
only upon receipt of a sworn statement signed by the chief executive officer
and the chief legal officer of the party requesting relief, attesting that (i)
the steel article for which relief is sought and the associated contract or
other written agreement meet the criteria for relief set forth in clause 2(i)
through (iv) of this proclamation; (ii) the party requesting relief will accurately report to U.S. Customs and Border Protection (CBP), in the manner
that CBP prescribes, the quantity of steel articles entered for consumption,
or withdrawn from warehouse for consumption, pursuant to any grant of
relief; and (iii) the quantity of steel articles entered pursuant to a grant
of relief will not exceed the quantity for which the Secretary has granted
relief. The Secretary shall notify CBP of any grant of relief made pursuant
to this proclamation. The Secretary shall revoke any grant of relief under
clause 2 of this proclamation if the Secretary determines at any time after
such grant that the criteria for relief have not been met and may, if the
Secretary deems it appropriate, notify the Attorney General of the facts
that led to such revocation.
(4) As soon as practicable, the Secretary shall issue procedures for the
requests for relief described in clauses 2 and 3 of this proclamation. The
issuance of such procedures is exempt from Executive Order 13771 of January
30, 2017 (Reducing Regulation and Controlling Regulatory Costs). CBP shall
implement relief provided under clause 2 of this proclamation as soon
as practicable.
(5) Until such time as the applicable quantitative limitation provided
in subheading 9903.80.57 of subchapter III of chapter 99 of the HTSUS
for Brazil has been reached, CBP shall count any steel article for which
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relief is granted under clause 2 of this proclamation toward such quantitative
limitation at the time when such steel article is entered for consumption
or withdrawn from warehouse for consumption. Any steel article for which
relief is granted under clause 2 of this proclamation must be entered for
consumption, or withdrawn from warehouse for consumption, on or before
December 31, 2020, and, before January 1, 2021, further relief may not
be granted for such article by the Secretary under clause 1 of Proclamation
9777. Steel articles for which relief is granted under clause 2 of this proclamation shall be subject to the duty treatment provided in subheading 9903.80.62
of subchapter III of chapter 99 of the HTSUS for Brazil, as established
by the Annex to this proclamation.
(6) Subdivision (a)(iii) of U.S. note 16 to subchapter III of chapter 99
of the HTSUS is amended by striking ‘‘9903.80.61’’ and inserting in its
place ‘‘9903.80.62’’.
(7) Subdivision (c) of U.S. note 16 to subchapter III of chapter 99 of
the HTSUS is amended by striking, in the last sentence, ‘‘and 9903.80.61’’
and inserting in its place: ‘‘, 9903.80.61, and 9903.80.62’’.
(8) Subdivision (d) of U.S. note 16 to subchapter III of chapter 99 of
the HTSUS is amended by striking, in the first sentence, ‘‘and 9903.80.61’’
and inserting in its place: ‘‘through 9903.80.62’’.
(9) The superior text to subheadings 9903.80.05 through 9903.80.58 of
subchapter III of chapter 99 of the HTSUS is amended by striking ‘‘and
9903.80.61’’ and inserting in its place: ‘‘through 9903.80.62’’.
(10) To implement clause 2 of this proclamation, subchapter III of chapter
99 of the HTSUS is modified as provided in the Annex to this proclamation.
(11) The modifications to the HTSUS made by clauses 6 through 10
of this proclamation and the Annex to this proclamation shall be effective
with respect to goods entered for consumption, or withdrawn from warehouse
for consumption, on or after 12:01 a.m. eastern daylight time on August
28, 2020, and shall continue in effect, unless such actions are expressly
reduced, modified, or terminated.
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(12) 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.
IN WITNESS WHEREOF, I have hereunto set my hand this twenty-eighth
day of August, in the year of our Lord two thousand twenty, and of the
Independence of the United States of America the two hundred and fortyfifth.
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Federal Register / Vol. 85, No. 171 / Wednesday, September 2, 2020 / Presidential Documents
54882
Federal Register / Vol. 85, No. 171 / Wednesday, September 2, 2020 / Presidential Documents
[FR Doc. 2020–19595
Filed 9–1–20; 11:15 a.m.]
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Billing code 7020–02–C
]]>Agencies
[Federal Register Volume 85, Number 171 (Wednesday, September 2, 2020)]
[Presidential Documents]
[Pages 54877-54882]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-19595]
[GRAPHIC] [TIFF OMITTED] TD02SE20.003
[FR Doc. 2020-19595
Filed 9-1-20; 11:15 a.m.]
Billing code 7020-02-C
