Adjusting Imports of Steel Into the United States, 57347-57352 [2024-15641]

Agencies

• Executive Office of the President

[Federal Register Volume 89, Number 135 (Monday, July 15, 2024)]
[Presidential Documents]
[Pages 57347-57352]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15641]




                        Presidential Documents 



Federal Register / Vol. 89, No. 135 / Monday, July 15, 2024 / 
Presidential Documents

[[Page 57347]]


                Proclamation 10783 of July 10, 2024

                
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 the Secretary's 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 steel 
                articles by imposing a 25 percent ad valorem tariff on 
                such articles imported from all countries except Canada 
                and Mexico. Proclamation 9705 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 9705, the President also directed 
                the Secretary to monitor imports of steel articles and 
                inform the President 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, with respect to such imports.

                4. In Proclamation 9894 of May 19, 2019 (Adjusting 
                Imports of Steel Into the United States), the President 
                noted that the United States had successfully concluded 
                discussions with Mexico on satisfactory alternative 
                means to address the threatened impairment of the 
                national security posed by steel imports from Mexico. 
                The United States agreed on a range of measures with 
                Mexico that were expected to allow imports of steel 
                from Mexico to remain stable at historical levels 
                without meaningful increases, thus permitting the 
                domestic capacity utilization to remain reasonably 
                commensurate with the target level recommended in the 
                Secretary's report. In the President's judgment, these 
                measures would provide effective, long-term alternative 
                means to address the contribution of Mexico's imports 
                to the threatened impairment of the national security.

                5. The President determined in Proclamation 9894 that, 
                under the framework in the agreement reached with 
                Mexico, imports of steel from Mexico would

[[Page 57348]]

                no longer threaten to impair the national security and 
                accordingly excluded Mexico from the tariff proclaimed 
                in Proclamation 9705, as amended. The President noted 
                that the United States would monitor the implementation 
                and effectiveness of these measures in addressing our 
                national security needs, and that the President may 
                revisit this determination as appropriate.

                6. In Proclamation 9980 of January 24, 2020 (Adjusting 
                Imports of Derivative Aluminum Articles and Derivative 
                Steel Articles Into the United States), the President 
                noted that, among other things, imports of certain 
                derivatives of steel articles had significantly 
                increased since the imposition of tariffs and quotas on 
                imports of steel articles in 2018. The President 
                further noted the Secretary's assessment that foreign 
                producers increased shipments of such derivative 
                articles to the United States to circumvent the duties 
                on steel articles imposed in Proclamation 9705, and 
                that the net effect of the increase of imports of these 
                derivatives had been to erode the customer base for 
                United States producers of steel and undermine the 
                purpose of Proclamation 9705.

                7. Based on such assessments by the Secretary, the 
                President concluded in Proclamation 9980 that it was 
                necessary and appropriate in light of our national 
                security interests to adjust the tariffs imposed by 
                previous proclamations to apply to certain derivatives 
                of steel articles from most countries, excluding 
                Argentina, Australia, Brazil, Canada, Mexico, and South 
                Korea. This action was necessary and appropriate to 
                address circumvention that was undermining the 
                effectiveness of the adjustment of imports made in 
                Proclamation 9705, as amended, and to remove the 
                threatened impairment of the national security of the 
                United States found in that proclamation.

                8. The Secretary has informed me that domestic steel 
                producers' capacity utilization remains below the 
                target 80 percent capacity utilization recommended in 
                the Secretary's report of January 11, 2018, and imports 
                of steel articles from Mexico have increased 
                significantly as compared to their levels at the time 
                of Proclamation 9894. In the Secretary's opinion, these 
                developments indicate the need for further action under 
                section 232 of the Trade Expansion Act of 1962, as 
                amended, with respect to such steel imports. In 
                monitoring the implementation and effectiveness of the 
                agreement with Mexico in addressing our national 
                security needs, I have determined that it is 
                appropriate to revisit the President's determination in 
                Proclamation 9894 regarding the applicability of the 
                tariff imposed in Proclamation 9705 to steel articles 
                imports from Mexico.

                9. Accordingly, the United States will implement a melt 
                and pour requirement for imports of steel articles that 
                are products of Mexico and will increase the section 
                232 duty rate for imports of steel articles and 
                derivative steel articles that are products of Mexico 
                that are melted and poured in a country other than 
                Mexico, Canada, or the United States. In order to be 
                eligible for importation free from section 232 tariffs, 
                steel articles and derivative steel articles that are 
                products of Mexico must be melted and poured in Mexico, 
                Canada, or the United States. In my judgment, these 
                measures will provide an effective, long-term 
                alternative means to address any contribution by 
                Mexican steel articles imports to the threatened 
                impairment of the national security by restraining 
                steel articles imports to the United States from 
                Mexico, limiting transshipment, and discouraging excess 
                steel capacity and production. The United States will 
                monitor the implementation and effectiveness of the 
                measures agreed upon with Mexico in addressing our 
                national security needs, and I may revisit this 
                determination, as appropriate.

                10. To prevent transshipment, excess production, or 
                other actions that would lead to increased exports of 
                steel articles to the United States, the United States 
                Trade Representative, in consultation with the 
                Secretary, shall advise me if there is a surge in 
                imports of steel articles to the United States from 
                Mexico and on the appropriate means to ensure that such 
                imports from Mexico do not undermine the national 
                security objectives of the tariff imposed in 
                Proclamation 9705, as amended. If necessary and 
                appropriate,

[[Page 57349]]

                I will consider directing the U.S. Customs and Border 
                Protection (CBP) of the Department of Homeland Security 
                to no longer exclude imports of steel articles from 
                Mexico from the tariff imposed in Proclamation 9705, as 
                amended.

                11. In light of my determination to adjust the tariff 
                proclaimed in Proclamation 9705, as amended, as applied 
                to eligible steel articles imports from Mexico, 
                respectively, 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.

                12. 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.

                13. 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 a melt and pour requirement for 
                imports of steel articles and derivative steel articles 
                that are products of Mexico, and an increase in the 
                duty rate for imports of steel articles and derivative 
                steel articles that are products of Mexico that are 
                melted and poured in a country other than Mexico, 
                Canada, or the United States, amendments to U.S. note 
                16 to subchapter III of chapter 99 and new HTSUS 
                headings are provided for in the Annex to this 
                proclamation. Imports of steel articles and derivative 
                steel articles that are products of Mexico shall be 
                exempt from the duty provided that such steel products 
                are melted and poured in Mexico, Canada, or the United 
                States.
                    (2) For purposes of implementing the melt and pour 
                requirements in this and other proclamations, importers 
                of steel and steel derivative articles shall provide to 
                CBP the information necessary to identify the countries 
                where the steel used in the manufacture of steel 
                articles imports, covered by clause 1 of Proclamation 
                9705, and derivative steel articles, specified in Annex 
                II of Proclamation 9980, are melted and poured. CBP 
                shall implement the melt and pour information 
                requirements as soon as practicable.
                    (3) The modifications to the HTSUS made by clause 1 
                of 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 July 10, 2024, and shall 
                continue in effect, unless such actions are expressly 
                reduced, modified, or terminated.
                    (4) Any imports of steel articles that are products 
                of Mexico and 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 July 10, 2024, shall be subject upon 
                entry for consumption made on or after 12:01 a.m. 
                eastern daylight time on July 10, 2024, to the 
                provisions of Proclamations 9894 and 9980.
                    (5) 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 57350]]

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

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[FR Doc. 2024-15641
Filed 7-12-24; 8:45 am]
Billing code 7020-02-C