Adjusting Imports of Steel Into the United States, 227-232 [2023-28996]

Agencies

• Executive Office of the President

[Federal Register Volume 89, Number 2 (Wednesday, January 3, 2024)]
[Presidential Documents]
[Pages 227-232]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-28996]




                        Presidential Documents 



Federal Register / Vol. 89, No. 2 / Wednesday, January 3, 2024 / 
Presidential Documents

[[Page 227]]


                Proclamation 10691 of December 28, 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 the United States 
                has a security relationship is welcome to discuss 
                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 9711, the President noted the 
                continuing discussions with the European Union (EU) on 
                behalf of its member countries on satisfactory 
                alternative means to address the threatened impairment 
                to the national security by imports of steel articles 
                from these countries. Recognizing that the member 
                countries of the EU have an important security 
                relationship with the United States, the President 
                determined that the necessary and appropriate means to 
                address the threat to the national security posed by 
                imports of steel articles from these countries was to 
                continue the ongoing discussions and to exempt steel 
                articles imports from these countries from the tariff 
                proclaimed in Proclamation 9705 until May 1, 2018.

                4. In Proclamation 9740 of April 30, 2018 (Adjusting 
                Imports of Steel Into the United States), the President 
                noted that, unless the President determines 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 the member countries of the EU, the 
                tariff proclaimed in clause 2 of Proclamation 9705 
                shall be effective June 1, 2018, for these countries.

                5. In Proclamation 10328 of December 27, 2021 
                (Adjusting Imports of Steel Into the United States), I 
                noted that the United States successfully concluded

[[Page 228]]

                discussions with the EU on behalf of its member 
                countries on satisfactory alternative means to address 
                the threatened impairment of the national security 
                posed by steel articles imports from the EU. 
                Specifically, the United States and the EU agreed to 
                expand coordination involving trade remedies and 
                customs matters, monitor bilateral steel and aluminum 
                trade, cooperate on addressing non-market excess 
                capacity, and annually review their arrangement for 
                alternative means and their ongoing cooperation. In 
                addition, the United States and the EU agreed to seek 
                to conclude, by October 31, 2023, negotiations on 
                global steel and aluminum arrangements to restore 
                market-oriented conditions and support the reduction of 
                carbon intensity of steel and aluminum across modes of 
                production.

                6. Pursuant to the agreement described in Proclamation 
                10328, the United States implemented a number of 
                actions, including a tariff-rate quota that restricts 
                the quantity of steel articles imported into the United 
                States from the EU without the application of the 
                tariff proclaimed in Proclamation 9705. I concluded 
                that these measures provide an effective, long-term 
                alternative means to address any contribution by EU 
                steel articles imports to the threatened impairment of 
                the national security by restraining steel articles 
                imports to the United States from the EU, limiting 
                transshipment, discouraging excess steel capacity and 
                production, and strengthening the United States-EU 
                partnership in a fashion that will better enable future 
                arrangements. In light of that agreement, I also 
                determined that specified volumes of eligible steel 
                articles imports from the EU no longer threaten to 
                impair the national security and decided to exclude 
                such imports from the EU up to a designated quota from 
                the tariff proclaimed in Proclamation 9705 through 
                December 31, 2023. I determined that the alternative 
                means, including the tariff-rate quota, advance the 
                recommendations in the Secretary's January 2018 report. 
                I also noted that the agreed-upon aggregate tariff-rate 
                quota volume specified in the agreement between the 
                United States and the EU, totaling 3.3 million metric 
                tons, is consistent with the objective of reaching and 
                maintaining a sufficient capacity utilization rate in 
                the domestic steel industry.

                7. During the past 2 years, the United States and the 
                EU have made substantial progress to identify the 
                sources of non-market excess capacity and the actions 
                needed to address distortions resulting from that non-
                market excess capacity. The United States and the EU 
                are continuing their discussions on global steel and 
                aluminum arrangements to restore market-oriented 
                conditions in their steel and aluminum sectors and 
                support the reduction of the greenhouse gas emissions 
                intensity of steel and aluminum across all modes of 
                production. These discussions are anticipated to 
                include alternative measures to prevent imports of 
                steel from the EU from threatening the national 
                security of the United States.

                8. In light of the ongoing discussions and joint 
                actions taken pursuant to the agreement described in 
                Proclamation 10328, I have determined that the 
                necessary and appropriate means to address the threat 
                to the national security posed by imports of steel 
                articles from the member countries of the EU is to 
                continue the discussions and joint actions with the EU 
                and to extend the tariff-rate quota that restricts the 
                quantity of steel articles imported into the United 
                States from the EU without the application of the 
                tariff proclaimed in Proclamation 9705. In order to be 
                eligible for in-quota treatment, steel articles must be 
                melted and poured in the EU. In my judgment, these 
                measures will provide an effective, long-term 
                alternative means to address any contribution by EU 
                steel articles imports to the threatened impairment of 
                the national security by restraining steel articles 
                imports to the United States from the EU, limiting 
                transshipment, discouraging excess steel capacity and 
                production, and strengthening the United States-EU 
                partnership in a fashion that will better enable future 
                arrangements.

                9. In light of the ongoing discussions and joint 
                actions taken pursuant to the agreement described in 
                Proclamation 10328, I have determined that specified 
                volumes of eligible steel articles imports from the EU 
                will no

[[Page 229]]

                longer threaten to impair the national security and 
                have decided to exclude such imports from the EU up to 
                a designated quota from the tariff proclaimed in 
                Proclamation 9705 through December 31, 2025. The United 
                States will monitor the implementation and 
                effectiveness of the tariff-rate quota and other 
                measures agreed upon with the EU in addressing our 
                national security needs, and I may revisit this 
                determination, as appropriate.

                10. The alternative means, including the tariff-rate 
                quota, advance the recommendations contained in the 
                Secretary's January 2018 report. The agreed-upon 
                aggregate tariff-rate quota volume specified in the 
                2021 agreement between the United States and the EU, 
                totaling 3.3 million metric tons, remains consistent 
                with the objective of reaching and maintaining a 
                sufficient capacity utilization rate in the domestic 
                steel industry.

                11. In Proclamation 10328, the United States agreed to 
                renew for 2 calendar years all exclusions that were 
                granted and utilized to import steel products tariff-
                free from the EU in Fiscal Year 2021. The United States 
                will renew for 2 calendar years all exclusions that 
                were utilized to import steel products free from 
                section 232 tariffs from the EU in Fiscal Year 2021 and 
                the first quarter of calendar year 2022. These 
                exclusions were granted by the Department of Commerce 
                due to a lack of domestic availability of the specified 
                products in the United States.

                12. In light of my determination to adjust the tariff 
                proclaimed in Proclamation 9705 as applied to eligible 
                steel articles imported from the EU, 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 other 
                countries. I have determined that it is necessary and 
                appropriate, at this time, to maintain the current 
                tariff level as it applies to other countries.

                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, 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) 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 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,

[[Page 230]]

                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; (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; and (x) on or after 
                12:01 a.m. eastern standard time on January 1, 2024, 
                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, 2025, 
                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,

[[Page 231]]

                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''.

(2) Steel eligible for in-quota treatment under the tariff-rate quota 
implemented in Proclamation 10328 and extended in this proclamation must be 
melted and poured in a member country of the EU in order to receive such 
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, or 
penalties under United States law.

(3) Imports of steel articles from member countries of the EU in excess of 
the tariff-rate quota quantities implemented in Proclamation 10328 and 
extended in this proclamation shall remain subject to the duties imposed by 
clause 2 of Proclamation 9705, as amended. The Secretary, in consultation 
with the United States Trade Representative and the Secretary of Homeland 
Security, shall recommend to the President, as warranted, updates to the 
in-quota volumes contained in this proclamation.

(4) Steel articles from a member country of the EU imported under an 
exclusion granted pursuant to clause 3 of Proclamation 9705, as amended, 
shall not count against the in-quota volume of the tariff-rate quota 
extended in this proclamation.

(5) The Secretary is directed to renew all utilized exclusions granted 
pursuant to clause 3 of Proclamation 9705, as amended, and utilized in 
Fiscal Year 2021 (October 1, 2020, through September 30, 2021) and the 
first quarter of calendar year 2022 (January 1, 2022, through March 31, 
2022), for the import of steel articles from one or more member countries 
of the EU for a period of 2 years from the date of this proclamation. The 
renewed exclusions shall be for an annual volume equal to that volume 
imported from a member country of the EU pursuant to the exclusions in 
Fiscal Year 2021 and the first quarter of calendar year 2022. The Secretary 
shall communicate to U.S. Customs and Border Protection of the Department 
of Homeland Security the exclusions and the volumes of steel articles from 
member countries of the EU that are allowed under this provision. The 
Secretary shall, by publication on the internet, or by other means, inform 
importers of the availability and volume of exclusions renewed by this 
provision. This provision does not alter or modify in any way the ability 
of importers to seek additional exclusions in accordance with clause 3 of 
Proclamation 9705, as amended, and as implemented by the Department of 
Commerce, for the import of steel articles from a member country of the EU.

(6) U.S. note 16(f) to subchapter III of chapter 99 of the HTSUS is amended 
by inserting, at the end of the first sentence of such note subdivision, 
the phrase ``, provided that such iron or steel products are melted and 
poured in any member country of the European Union'' after the final 
appearance of the word ``subdivision''.

(7) The modifications made by 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 standard time on January 1, 
2024, and shall continue in effect, unless such actions are expressly 
reduced, modified, or terminated.

(8) Any imports of steel articles from the member countries of the EU that 
were admitted into a United States foreign trade zone under ``privileged 
foreign status'' as defined in 19 CFR 146.41, prior to 12:01 a.m. eastern 
standard time on January 1, 2024, shall be subject upon entry for 
consumption made on or after 12:01 a.m. eastern standard time on January 1, 
2024, to the provisions of the tariff-rate quota in effect at the time of 
the entry for consumption.

[[Page 232]]

(9) 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 December, 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-
                eighth.
                
                
                    (Presidential Sig.)

[FR Doc. 2023-28996
Filed 1-2-24; 8:45 am]
Billing code 3395-F4-P