Adjusting Imports of Steel Into the United States, 36437-36444 [2023-12055]

Agencies

• Executive Office of the President

[Federal Register Volume 88, Number 107 (Monday, June 5, 2023)]
[Presidential Documents]
[Pages 36437-36444]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-12055]




                        Presidential Documents 



Federal Register / Vol. 88 , No. 107 / Monday, June 5, 2023 / 
Presidential Documents

___________________________________________________________________

Title 3--
The President

[[Page 36437]]

                Proclamation 10588 of May 31, 2023

                
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 the President a report on 
                the Secretary's 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 the 
                President of his opinion that steel 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.

                2. In Proclamation 9705 of March 8, 2018 (Adjusting 
                Imports of Steel Into the United States), the President 
                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), 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 those 
                steel articles by imposing a 25 percent ad valorem 
                tariff on such articles imported from all countries 
                except Canada and Mexico. The proclamation 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 the President determines that 
                imports from that country no longer threaten to impair 
                the national security, the President 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.

                3. In Proclamation 10403 of May 27, 2022 (Adjusting 
                Imports of Steel Into the United States), I suspended 
                the tariffs set forth in Proclamation 9705 for the 
                import of steel articles and derivative steel articles 
                from Ukraine for 1 year. I also instructed the 
                Secretary to monitor the situation in the domestic 
                steel industry and developments in Ukraine's steel 
                industry and inform me of any need to terminate or 
                extend this suspension.

                4. The Secretary has informed me that the situation 
                with regard to Ukraine's steel industry has not changed 
                since the issuance of Proclamation 10403. Ukraine's 
                steel industry continues to be significantly disrupted 
                by the Russian Federation's unjustified, unprovoked, 
                unyielding, and unconscionable war against Ukraine. The 
                significant disruption in Ukraine's steel production 
                has decreased the total amount of steel produced by 
                Ukraine. While the amount of steel imported into the 
                United States from Ukraine increased slightly in 2022 
                compared to 2021, it is still below the average import 
                volume prior to 2021, and in 2022 it accounted for less 
                than 1 percent of all steel imports into the United 
                States. At the same time, the steel industry has been 
                historically important to Ukraine, and both the United 
                States and Ukraine have an interest in maintaining that 
                industry as an economic lifeline while the country 
                recovers. The Secretary has also informed

[[Page 36438]]

                me that the United States and Ukraine continue to be 
                engaged in broad security discussions. The current 
                disruption of Ukrainian steel production has been part 
                of those discussions, and the ongoing discussion is 
                anticipated to include alternative measures to prevent 
                imports of steel from Ukraine from threatening the 
                national security of the United States as Ukraine's 
                steel production recovers from the significant 
                disruption caused by the war.

                5. The Secretary has also informed me that the 
                disruption of the Ukrainian steel industry has caused 
                some steel articles from Ukraine to be further 
                processed in countries that are members of the European 
                Union. Expanding the scope of Proclamation 10403 to 
                include the suspension of the tariffs on products from 
                the European Union made from steel originating in 
                Ukraine will greatly assist the Ukrainian steel 
                industry. A certificate of origin attesting to the 
                Ukrainian origin of the steel articles further 
                processed in a member country of the European Union 
                shall be required for duty-free treatment.

                6. In light of the Secretary's findings, I conclude 
                that Ukraine's present situation remains a special case 
                and that an extension of the suspension of tariffs in 
                Proclamation 10403 and the inclusion of steel articles 
                from Ukraine further processed in a member country of 
                the European Union is warranted. The Secretary shall 
                continue to monitor the situation in the domestic steel 
                industry and developments in Ukraine's steel industry 
                and inform me of any need to terminate or extend this 
                suspension.

                7. In light of my determination to adjust the tariff 
                proclaimed in Proclamation 9705 as applied to eligible 
                steel articles and derivative steel articles that are 
                the product of Ukraine, I have considered whether it is 
                necessary and appropriate in light of our national 
                security interests to make any corresponding 
                adjustments to such tariff as it applies to products of 
                other countries. I have determined that it is necessary 
                and appropriate, at this time, to maintain the current 
                tariff level as it applies to products of other 
                countries.

                8. Section 232 of the Trade Expansion Act of 1962, as 
                amended, authorizes the President to take action 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.

                9. 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, JOSEPH R. BIDEN JR., 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) To establish duty-free treatment on imports of 
                steel articles when such are the products of Ukraine as 
                set forth in clauses 2 and 3 of this proclamation, U.S. 
                Note 16 of subchapter III of chapter 99 of the HTSUS is 
                amended as provided for in the Annex to this 
                proclamation.
                    (2) Clause 2 of Proclamation 9705, as amended, is 
                revised to read as follows:
                    ``(2)(a) In order to establish certain 
                modifications to the duty rate on imports of steel 
                articles, subchapter III of chapter 99 of the HTSUS is 
                modified as provided in the Annex to this proclamation 
                and any subsequent proclamations regarding such steel 
                articles.

(b) Except as otherwise provided in this proclamation, or in notices 
published pursuant to clause 3 of this proclamation, all steel articles 
imports covered by heading 9903.80.01, in subchapter III of chapter 99 of 
the HTSUS, shall be subject to an additional 25 percent ad valorem rate

[[Page 36439]]

of duty with respect to goods entered for consumption, or withdrawn from 
warehouse for consumption, as follows: (i) on or after 12:01 a.m. eastern 
daylight time on March 23, 2018, from all countries except Argentina, 
Australia, Brazil, Canada, Mexico, South Korea, and the member countries of 
the European Union; (ii) on or after 12:01 a.m. eastern daylight time on 
June 1, 2018, from all countries except Argentina, Australia, Brazil, and 
South Korea; (iii) on or after 12:01 a.m. eastern daylight time on August 
13, 2018, from all countries except Argentina, Australia, Brazil, South 
Korea, and Turkey; (iv) on or after 12:01 a.m. eastern daylight time on May 
20, 2019, from all countries except Argentina, Australia, Brazil, South 
Korea, and Turkey; (v) on or after 12:01 a.m. eastern daylight time on May 
21, 2019, from all countries except Argentina, Australia, Brazil, Canada, 
Mexico, and South Korea; (vi) on or after 12:01 a.m. eastern standard time 
on January 1, 2022, from all countries except Argentina, Australia, Brazil, 
Canada, Mexico, and South Korea, and except the member countries of the 
European Union through 11:59 p.m. eastern standard time on December 31, 
2023, for steel articles covered by headings 9903.80.65 through 9903.81.19, 
inclusive; (vii) on or after 12:01 a.m. eastern daylight time on April 1, 
2022, from all countries except Argentina, Australia, Brazil, Canada, 
Mexico, and South Korea, and except the member countries of the European 
Union through 11:59 p.m. eastern standard time on December 31, 2023, for 
steel articles covered by headings 9903.80.65 through 9903.81.19, 
inclusive, and from Japan, for steel articles covered by headings 
9903.81.25 through 9903.81.80, inclusive; (viii) on or after 12:01 a.m. 
eastern daylight time on June 1, 2022, from all countries except Argentina, 
Australia, Brazil, Canada, Mexico, South Korea, and Ukraine through 11:59 
p.m. eastern daylight time on June 1, 2023, and except the member countries 
of the European Union through 11:59 p.m. eastern standard time on December 
31, 2023, for steel articles covered by headings 9903.80.65 through 
9903.81.19, inclusive, and from Japan and the United Kingdom (UK), for 
steel articles covered by subheadings 9903.81.25 through 9903.81.78 and 
heading 9903.81.80, and from the member countries of the European Union, 
for steel articles covered by heading 9903.81.81; and (ix) on or after 
12:01 a.m. eastern daylight time on June 1, 2023, from all countries except 
Argentina, Australia, Brazil, Canada, Mexico, South Korea, and Ukraine 
through 11:59 p.m. eastern daylight time on June 1, 2024, and except the 
member countries of the European Union through 11:59 p.m. eastern standard 
time on December 31, 2023, for steel articles covered by headings 
9903.80.65 through 9903.81.19, inclusive, and from Japan and the UK, for 
steel articles covered by subheadings 9903.81.25 through 9903.81.78 and 
heading 9903.81.80, and from the member countries of the European Union, 
for steel articles covered by heading 9903.81.81, and from the member 
countries of the European Union where the steel used in the manufacture of 
the steel article is melted and poured in Ukraine through 11:59 p.m. 
eastern daylight time on June 1, 2024. Further, except as otherwise 
provided in notices published pursuant to clause 3 of this proclamation, 
all steel articles imports from Turkey covered by heading 9903.80.02, in 
subchapter III of chapter 99 of the HTSUS, shall be subject to a 50 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 
daylight time on August 13, 2018, and prior to 12:01 a.m. eastern daylight 
time on May 21, 2019. All steel articles imports covered by heading 
9903.80.61, in subchapter III of chapter 99 of the HTSUS, shall be subject 
to the additional 25 percent ad valorem rate of duty established herein 
with respect to goods entered for consumption, or withdrawn from warehouse 
for consumption, on or after 12:01 a.m. eastern time on the date specified 
in a determination by the Secretary granting relief. These rates of duty, 
which are 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 three sentences''.

[[Page 36440]]

                    (3) The first two sentences of clause 1 of 
                Proclamation 9980 of January 24, 2020 (Adjusting 
                Imports of Derivative Aluminum Articles and Derivative 
                Steel Articles Into the United States), are revised to 
                read as follows:
                    ``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, as follows: (i) 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; (ii) on or after 12:01 
                a.m. eastern standard time on January 1, 2022, 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, Australia, Canada, the 
                member countries of the European Union, and Mexico, and 
                to imports of derivative steel articles described in 
                Annex II to this proclamation from all countries except 
                Argentina, Australia, Brazil, Canada, the member 
                countries of the European Union, Mexico, and South 
                Korea; (iii) on or after 12:01 a.m. eastern daylight 
                time on April 1, 2022, 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, 
                Australia, Canada, the member countries of the European 
                Union, and Mexico, and to imports of derivative steel 
                articles described in Annex II to this proclamation 
                from all countries except Argentina, Australia, Brazil, 
                Canada, the member countries of the European Union, 
                Japan, Mexico, and South Korea; (iv) on or after 12:01 
                a.m. eastern daylight time on June 1, 2022, 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, Australia, Canada, the 
                member countries of the European Union, Mexico, and the 
                UK, and to imports of derivative steel articles 
                described in Annex II to this proclamation from all 
                countries except Argentina, Australia, Brazil, Canada, 
                the member countries of the European Union, Japan, 
                Mexico, South Korea, and the UK, and except from 
                Ukraine through 11:59 p.m. eastern daylight time on 
                June 1, 2023; (v) on or after 12:01 a.m. eastern 
                standard time on March 10, 2023, 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, Australia, Canada, the 
                member countries of the European Union, Mexico, the UK, 
                and Russia, and to imports of derivative steel articles 
                described in Annex II to this proclamation from all 
                countries except Argentina, Australia, Brazil, Canada, 
                the member countries of the European Union, Japan, 
                Mexico, South Korea, and the UK, and except from 
                Ukraine through 11:59 p.m. eastern daylight time on 
                June 1, 2023; and (vi) on or after 12:01 a.m. eastern 
                daylight time on June 1, 2023, these rates of duty, 
                which are in addition to any

[[Page 36441]]

                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, Australia, Canada, the 
                member countries of the European Union, Mexico, the UK, 
                and Russia, and to imports of derivative steel articles 
                described in Annex II to this proclamation from all 
                countries except Argentina, Australia, Brazil, Canada, 
                the member countries of the European Union, Japan, 
                Mexico, South Korea, and the UK, and except from 
                Ukraine through 11:59 p.m. eastern daylight time on 
                June 1, 2024.''
                    (4) Any imports of steel articles from Ukraine that 
                were 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 
                June 1, 2022, shall be subject upon entry for 
                consumption made on or after 12:01 a.m. eastern 
                daylight time on June 1, 2022, to the 25 percent rate 
                of duty imposed by Proclamation 9705, as amended; and 
                any imports of steel articles from the member countries 
                of the European Union where the steel used in the 
                manufacture of the steel article is melted and poured 
                in Ukraine that were 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 June 1, 2023, shall be subject upon entry for 
                consumption made on or after 12:01 a.m. eastern 
                daylight time on June 1, 2023, to the 25 percent rate 
                of duty imposed by Proclamation 9705, as amended.
                    (5) Steel articles from a member country of the 
                European Union where the steel used in the manufacture 
                of the steel article is melted and poured in Ukraine 
                are not eligible for, and shall not count against, the 
                in-quota volume of the tariff-rate quota established in 
                clause 1 of Proclamation 10328 of December 27, 2021 
                (Adjusting Imports of Steel Into the United States).
                    (6) Steel articles from Ukraine eligible for 
                treatment under clauses 2 and 3 of this proclamation 
                must be accompanied by a certificate of origin in order 
                to be eligible for duty-free treatment. The Secretary, 
                in consultation with the Secretary of Homeland Security 
                and the United States Trade Representative, is 
                authorized to take such actions as are necessary to 
                ensure compliance with this requirement. Failure to 
                comply could result in applicable remedies such as the 
                collection of the tariff set forth in clause 2 of 
                Proclamation 9705 and clause 1 of Proclamation 9980, or 
                penalties under United States law.
                    (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.

[[Page 36442]]

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

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[FR Doc. 2023-12055
Filed 6-2-23; 8:45 am]
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