Adjusting Imports of Steel Into the United States, 54877-54880 [X20-10902]

Agencies

• Executive Office of the President

[Federal Register Volume 85, Number 171 (Wednesday, September 2, 2020)]
[Presidential Documents]
[Pages 54877-54880]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: X20-10902]



[[Page 54875]]

Vol. 85

Wednesday,

No. 171

September 2, 2020

Part V





The President





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Proclamation 10064--Adjusting Imports of Steel Into the United States



Memorandum of August 29, 2020--Extension of the Use of the National 
Guard To Respond to COVID-19 and To Facilitate Economic Recovery


                        Presidential Documents 



Federal Register / Vol. 85 , No. 171 / Wednesday, September 2, 2020 / 
Presidential Documents

___________________________________________________________________

Title 3--
The President

[[Page 54877]]

                Proclamation 10064 of August 28, 2020

                
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.

                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

[[Page 54878]]

                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.

                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.

[[Page 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.
                    (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

[[Page 54880]]

                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.
                    (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 forty-
                fifth.
                
                
                    (Presidential Sig.)

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