To Facilitate Positive Adjustment to Competition From Imports of Fine Denier Polyester Staple Fiber, 92015-92022 [R1-2024-26714]

Agencies

• Executive Office of the President

[Federal Register Volume 89, Number 224 (Wednesday, November 20, 2024)]
[Presidential Documents]
[Pages 92015-92022]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: R1-2024-26714]



[[Page 92013]]

Vol. 89

Wednesday,

No. 224

November 20, 2024

Part III





The President





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Proclamation 10857--To Facilitate Positive Adjustment to Competition 
From Imports of Fine Denier Polyester Staple Fiber


                        Presidential Documents 



Federal Register / Vol. 89 , No. 224 / Wednesday, November 20, 2024 / 
Presidential Documents

___________________________________________________________________

Title 3--
The President

[[Page 92015]]

                Proclamation 10857 of November 8, 2024

                
To Facilitate Positive Adjustment to Competition 
                From Imports of Fine Denier Polyester Staple Fiber

                By the President of the United States of America

                A Proclamation


                     [Editorial Note: Proclamation 10857, originally 
                published on pages 89909-89916 in the Federal Register 
                of November 14, 2024, is being reprinted with a White 
                House correction to the annex.]

                1. On August 26, 2024, the United States International 
                Trade Commission (USITC) transmitted to the President a 
                report (USITC Report) on its investigation under 
                section 202 of the Trade Act of 1974, as amended (the 
                ``Trade Act'') (19 U.S.C. 2252), with respect to 
                imports of fine denier polyester staple fiber (fine 
                denier PSF). The product subject to the USITC's 
                investigation and determination excluded certain fine 
                denier PSF described in the USITC's Notice of 
                Institution, 89 FR 18435 (March 13, 2024), and listed 
                in subdivision (c)(ii) of Note 32 in the Annex to this 
                proclamation.

                2. The USITC reached an affirmative determination under 
                section 202(b) of the Trade Act (19 U.S.C. 2252(b)) 
                that fine denier PSF is being imported into the United 
                States in such increased quantities as to be a 
                substantial cause of serious injury to the domestic 
                industry producing an article like or directly 
                competitive with the imported article.

                3. Pursuant to section 301(a) of the United States-
                Mexico-Canada Agreement Implementation Act (the ``USMCA 
                Implementation Act'') (19 U.S.C. 4551(a)), the USITC 
                made findings as to whether imports of Canada and 
                Mexico, considered individually, account for a 
                substantial share of total imports and contribute 
                importantly to the serious injury caused by imports. 
                The USITC made negative findings of substantial share 
                and contribution to injury with respect to imports of 
                fine denier PSF from Canada and Mexico, considered 
                individually.

                4. Pursuant to statutes implementing certain free trade 
                agreements to which the United States is a party, the 
                USITC further found that imports of fine denier PSF 
                that are a product of Australia, each Dominican 
                Republic-Central America-United States Free Trade 
                Agreement country (i.e., Costa Rica, the Dominican 
                Republic, El Salvador, Guatemala, Honduras, and 
                Nicaragua) (CAFTA-DR countries), Colombia, Jordan, the 
                Republic of Korea, Panama, Peru, and Singapore, 
                individually, are not a substantial cause of serious 
                injury or threat thereof.

                5. Furthermore, pursuant to section 403 of the Trade 
                and Tariff Act of 1984 (Public Law 98-573, 98 Stat. 
                2948, 3016 (1984)) (19 U.S.C. 2112 note), the USITC 
                found that the serious injury substantially caused by 
                imports to the domestic industry producing a like or 
                directly competitive article does not result from the 
                reduction or elimination of any duty provided for under 
                the United States-Israel Free Trade Agreement. The 
                USITC also found, pursuant to 19 U.S.C. 2703(e), that 
                the serious injury substantially caused by imports to 
                the domestic industry producing a like or directly 
                competitive article does not result from duty-free 
                treatment provided for under the Caribbean Basin 
                Economic Recovery Act (CBERA) provisions of the 
                Caribbean Basin Initiative trade program or the 
                Generalized System of Preferences (GSP) program.

[[Page 92016]]

                6. The USITC Commissioners transmitted to the President 
                their individual recommendations that each of them 
                considered would address the serious injury to the 
                domestic industry and be most effective in facilitating 
                the efforts of the domestic industry to make a positive 
                adjustment to import competition.

                7. On September 10, 2024, the United States Trade 
                Representative (USTR) requested additional information 
                from the USITC under section 203(a)(5) of the Trade Act 
                (19 U.S.C. 2253(a)(5)). On October 10, 2024, the USITC 
                provided a response that identified unforeseen 
                developments that led to the importation of fine denier 
                PSF into the United States in such increased quantities 
                as to be a substantial cause of serious injury (USITC 
                Supplemental Report). The USITC Supplemental Report 
                also reported, inter alia, that increased imports of 
                fine denier PSF products of all countries other than 
                Australia, Canada, the CAFTA-DR countries, Colombia, 
                Israel, Jordan, the Republic of Korea, Mexico, Panama, 
                Peru, and Singapore are a substantial cause of serious 
                injury to the domestic industry.

                8. Pursuant to section 203 of the Trade Act (19 U.S.C. 
                2253), and after taking into account the considerations 
                specified in section 203(a)(2) of the Trade Act (19 
                U.S.C. 2253(a)(2)), the USITC Report, and the USITC 
                Supplemental Report, I have determined to implement 
                action of a type described in section 203(a)(3) (19 
                U.S.C. 2253(a)(3)) (safeguard measure), with regard to 
                the following fine denier PSF: fine denier PSF, not 
                carded or combed, measuring less than 3.3 decitex (3 
                denier) in diameter, whether coated or uncoated. Fine 
                denier PSF is classifiable in the Harmonized Tariff 
                Schedule of the United States (HTS) in subheading 
                5503.20.00 and described in statistical reporting 
                number 5503.20.0025 or 9813.00.0520.

                9. Pursuant to section 203 of the Trade Act (19 U.S.C. 
                2253), the action I have determined to take shall be a 
                safeguard measure in the form of a quantitative 
                restriction on imports of fine denier PSF described in 
                paragraph 8 of this proclamation, admitted temporarily 
                free of duty under bond and entered under subheading 
                5503.20.00 and described in statistical reporting 
                number 5503.20.0025 or 9813.00.0520, imposed for a 
                period of 4 years, with annual reductions in the 
                within-quota quantities in the second, third, and 
                fourth years. Admission of certain imported articles 
                free of duty under bond is commonly known as a 
                Temporary Importation under Bond (TIB). TIB entries are 
                subject to the conditions appearing in Chapter 98, 
                Subchapter XIII, of the HTS (19 U.S.C. 1202) as well as 
                regulations promulgated by U.S. Customs and Border 
                Protection and the Department of the Treasury.

                10. The quantitative restriction of TIB entries 
                described in paragraph 9 of this proclamation shall be 
                allocated among all countries except those countries 
                the products of which are excluded from such 
                quantitative restriction, pursuant to paragraphs 13 
                through 16 of this proclamation.

                11. This safeguard measure shall apply to imports of 
                all countries, except as provided in paragraphs 13 
                through 16 of this proclamation.

                12. I have found, pursuant to section 203(e)(4) of the 
                Trade Act (19 U.S.C. 2253(e)(4)), that the most recent 
                3 years that are representative of imports of fine 
                denier PSF and for which data are available are 2018 
                through 2020, because that period covers the 3 most 
                recent years before the surge in imports, particularly 
                under TIB entry, from 2021 to 2023. Setting a 
                quantitative restriction of zero pounds for the first 
                year of this action is consistent with this 
                representative period because the USITC Report 
                indicates that there were no imports of fine denier PSF 
                under TIB entry during 2018 through 2020.

                13. This safeguard measure shall not apply to imports 
                of any product described in paragraph 8 of this 
                proclamation of a developing country, as listed in 
                subdivision (b)(iii) of Note 32 in the Annex to this 
                proclamation, as long as such a country's share of 
                total imports of the product, based on imports during a 
                recent representative period, does not exceed 3 
                percent, provided that imports that are the product of 
                all such countries with less

[[Page 92017]]

                than 3 percent import share collectively account for 
                not more than 9 percent of total imports of the 
                product. If I determine that a surge in imports of a 
                product described in paragraph 8 of this proclamation 
                of a developing country that is a World Trade 
                Organization (WTO) Member results in imports of that 
                product from that developing country exceeding either 
                of the thresholds described in this paragraph, I may 
                modify this action to apply to such product of such 
                country.

                14. Pursuant to section 302(a) of the USMCA 
                Implementation Act (19 U.S.C. 4552(a)), I have 
                determined after considering the USITC Report and the 
                USITC Supplemental Report that imports of fine denier 
                PSF that are the product of Canada and Mexico, 
                considered individually, do not account for a 
                substantial share of total imports and do not 
                contribute importantly to the serious injury found by 
                the USITC. Accordingly, pursuant to section 302(b) of 
                the USMCA Implementation Act (19 U.S.C. 4552(b)), I 
                have excluded fine denier PSF that is the product of 
                Canada or Mexico from the action I am taking under 
                section 203 of the Trade Act (19 U.S.C. 2253).

                15. After considering the USITC Report and the USITC 
                Supplemental Report, I have also made the following 
                determinations with regard to fine denier PSF that is 
                the product of the following trading partners:

                    (a) I have determined that imports of fine denier 
                PSF that are the product of Australia are not a 
                substantial cause of the serious injury found by the 
                USITC, and I have therefore determined to exclude such 
                imports that are the product of Australia from the 
                action I am taking under section 203 of the Trade Act 
                (19 U.S.C. 2253), pursuant to section 331(b) of the 
                United States-Australia Free Trade Agreement 
                Implementation Act (Public Law 108-286, 118 Stat. 919, 
                949 (2004)) (19 U.S.C. 3805 note);
                    (b) In light of the USITC's finding that imports of 
                fine denier PSF that are the product of each CAFTA-DR 
                country individually are not a substantial cause of 
                serious injury or threat thereof, I have determined to 
                exclude such imports that are the product of each of 
                the CAFTA-DR countries from the action I am taking 
                under section 203 of the Trade Act (19 U.S.C. 2253), 
                pursuant to section 331(b) of the Dominican Republic-
                Central America-United States Free Trade Agreement 
                Implementation Act (the ``CAFTA-DR Act'') (Public Law 
                109-53, 119 Stat. 462, 495 (2005)) (19 U.S.C. 4101(b));
                    (c) In light of the USITC's finding that imports of 
                fine denier PSF that are the product of Colombia are 
                not a substantial cause of serious injury or threat 
                thereof, I have determined to exclude such imports that 
                are the product of Colombia from the action I am taking 
                under section 203 of the Trade Act (19 U.S.C. 2253), 
                pursuant to section 331(b) of the United States-
                Colombia Trade Promotion Agreement Implementation Act 
                (Public Law 112-42, 125 Stat. 462, 493-94 (2011)) (19 
                U.S.C. 3805 note);
                    (d) In light of the USITC's finding that the 
                serious injury substantially caused by imports to the 
                domestic industry producing a like or directly 
                competitive article does not result from the reduction 
                or elimination of any duty provided for under the 
                United States-Israel Free Trade Agreement, I have 
                determined, as part of the action I am taking under 
                section 203 of the Trade Act (19 U.S.C. 2253), not to 
                suspend the reduction or elimination of any duty on 
                imports of fine denier PSF that are the product of 
                Israel, pursuant to section 403 of the Trade and Tariff 
                Act of 1984 (19 U.S.C. 2112 note);
                    (e) In light of the USITC's finding that imports of 
                fine denier PSF that are the product of Panama are not 
                a substantial cause of serious injury or threat 
                thereof, I have determined to exclude such imports that 
                are the product of Panama from the action I am taking 
                under section 203 of the Trade Act (19 U.S.C. 2253), 
                pursuant to section 331(b) of the United States-Panama 
                Trade Promotion Agreement Implementation Act (Public 
                Law 112-43, 125 Stat. 497, 529 (2011)) (19 U.S.C. 3805 
                note);

[[Page 92018]]

                    (f) In light of the USITC's finding that imports of 
                fine denier PSF that are the product of Peru are not a 
                substantial cause of serious injury or threat thereof, 
                I have determined to exclude such imports that are the 
                product of Peru from the action I am taking under 
                section 203 of the Trade Act (19 U.S.C. 2553), pursuant 
                to section 331(b) of the United States-Peru Trade 
                Promotion Agreement Implementation Act (Public Law 110-
                138, 121 Stat. 1455, 1486 (2007)) (19 U.S.C. 3805 
                note);
                    (g) I have determined that imports of fine denier 
                PSF that are the product of Singapore are not a 
                substantial cause of the serious injury found by the 
                USITC, and I have therefore determined to exclude such 
                imports that are the product of Singapore from the 
                action I am taking under section 203 of the Trade Act 
                (19 U.S.C. 2253), pursuant to section 331(b) of the 
                United States-Singapore Free Trade Agreement 
                Implementation Act (Public Law 108-78, 117 Stat. 948, 
                970 (2003)) (19 U.S.C. 3805 note); and
                    (h) In light of the USITC's finding that the 
                serious injury substantially caused by imports to the 
                domestic industry producing a like or directly 
                competitive article does not result from duty-free 
                treatment provided for under the CBERA provisions of 
                the Caribbean Basin Initiative trade program, I have 
                determined, as part of the action I am taking under 
                section 203 of the Trade Act (19 U.S.C. 2253), not to 
                suspend duty-free treatment pursuant to subsection 1 of 
                19 U.S.C. 2703(e), with respect to imports of fine 
                denier PSF that are the product of any CBERA 
                beneficiary country or territory.

                16. Although the USITC found that imports of fine 
                denier PSF that are a product of the Republic of Korea 
                are not a substantial cause of serious injury or threat 
                thereof, I have determined to include imports of fine 
                denier PSF that are the product of the Republic of 
                Korea in the action I am taking under section 203 of 
                the Trade Act (19 U.S.C. 2253). Specifically, 
                consistent with the recommendations of certain USITC 
                Commissioners, I have found that excluding imports of 
                the Republic of Korea from the quantitative restriction 
                could significantly undermine this action.

                17. While the USITC recommended excluding Jordan from 
                this action under the United States-Jordan Free Trade 
                Area Implementation Act (Public Law 107-43, 115 Stat. 
                243 (2001)) (19 U.S.C. 2112 note), I have instead 
                determined to exclude such imports that are the product 
                of Jordan as imports of a developing country from the 
                action I am taking, pursuant to paragraph 13 of this 
                proclamation.

                18. While the USITC Commissioners recommended that I 
                impose a tariff-rate quota on fine denier PSF imports, 
                I have determined not to do so. The USITC Report 
                indicates that TIB entries of fine denier PSF 
                contributed significantly to the serious injury to the 
                domestic industry. In addition, such TIB entries are 
                undermining the effectiveness of existing trade actions 
                on fine denier PSF. Therefore, I have decided to tailor 
                this safeguard remedy to TIB entries of fine denier 
                PSF. Furthermore, I have determined not to impose a 
                tariff-rate quota on imports of fine denier PSF in the 
                interest of balancing the competing interests of 
                domestic fine denier PSF manufacturers and the impact 
                of the safeguard remedy on downstream United States 
                producers, including manufacturers of textiles, defense 
                products, and consumer products, that rely on fine 
                denier PSF.

                19. Pursuant to section 203(a)(1)(A) of the Trade Act 
                (19 U.S.C. 2253(a)(1)(A)), I have determined that this 
                safeguard measure will facilitate efforts by the 
                domestic industry to make a positive adjustment to 
                import competition and provide greater economic and 
                social benefits than costs. If I determine that further 
                action is appropriate and feasible to facilitate 
                efforts by the domestic industry to make a positive 
                adjustment to import competition and provide greater 
                economic and social benefits than costs, or if I 
                determine that the conditions under section 204(b)(1) 
                of the Trade Act (19 U.S.C. 2254(b)(1)) are met, I 
                shall reduce, modify, or terminate the action 
                established in this proclamation accordingly. In 
                addition, if I determine within 30 days of the date of 
                this proclamation, as a result of consultations between 
                the United States and other WTO Members pursuant to 
                Article 12.3 of the

[[Page 92019]]

                WTO Agreement on Safeguards, that it is necessary to 
                reduce, modify, or terminate the safeguard measure, I 
                shall proclaim the corresponding reduction, 
                modification, or termination of the safeguard measure 
                within 40 days of the date of this proclamation.

                20. Section 604 of the Trade Act (19 U.S.C. 2483) 
                authorizes the President to embody in the HTS the 
                substance of the relevant provisions of that Act, and 
                of other acts 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, including sections 203 and 604 of the Trade Act 
                (19 U.S.C. 2253 and 2483), section 302 of the USMCA 
                Implementation Act (19 U.S.C. 4552), section 331(b) of 
                the United States-Australia Free Trade Agreement 
                Implementation Act (19 U.S.C. 3805 note), section 
                331(b) of the CAFTA-DR Act (19 U.S.C. 4101(b)), section 
                331(b) of the United States-Colombia Free Trade 
                Promotion Agreement Implementation Act (19 U.S.C. 3805 
                note), section 403 of the Trade and Tariff Act of 1984 
                (19 U.S.C. 2112 note), section 331(b) of the United 
                States-Panama Trade Promotion Agreement Implementation 
                Act (19 U.S.C. 3805 note), section 331(b) of the United 
                States-Peru Trade Promotion Agreement Implementation 
                Act (19 U.S.C. 3805 note), section 331(b) of the United 
                States-Singapore Free Trade Agreement Implementation 
                Act (19 U.S.C. 3805 note), and 19 U.S.C. 2703(e), do 
                proclaim that:

                (1) In order to establish a quantitative restriction on 
                imports of fine denier PSF described in paragraph 9 of 
                this proclamation, subchapter III of chapter 99 of the 
                HTS is modified as provided in the Annex to this 
                proclamation.

                (2) The modifications to the HTS made by this 
                proclamation, included in the Annex to this 
                proclamation, shall be effective with respect to goods 
                admitted temporarily free of duty under bond which are 
                entered under HTS statistical reporting number 
                9813.00.0520, on or after 12:01 a.m. eastern standard 
                time 15 days after the date of this proclamation, and 
                shall continue in effect as provided in the Annex to 
                this proclamation, unless such action is earlier 
                expressly reduced, modified, or terminated.

                (3) Imports of fine denier PSF that are the product of 
                Australia, Canada, the CAFTA-DR countries, CBERA 
                beneficiary countries and territories, Colombia, 
                Israel, Mexico, Panama, Peru, or Singapore shall be 
                excluded from the safeguard measure established in this 
                proclamation, and such imports shall not be counted 
                toward the quantitative restriction.

                (4) Except as provided in clause (5) below, imports of 
                fine denier PSF that are the product of developing 
                countries, as listed in subdivision (b)(iii) of Note 32 
                in the Annex to this proclamation, shall be excluded 
                from the safeguard measure established in this 
                proclamation, and such imports shall not be counted 
                toward the quantitative restriction.

                (5) If, after the safeguard measure established in this 
                proclamation takes effect, I determine that:

                    (a) the share of total imports of the product of a 
                country listed in subdivision (b)(iii) of Note 32 in 
                the Annex to this proclamation, based on imports during 
                a recent representative period, exceeds 3 percent;
                    (b) imports of the product from all listed 
                countries with less than 3 percent import share 
                collectively account for more than 9 percent of total 
                imports of the product; or
                    (c) a country listed in subdivision (b)(iii) of 
                Note 32 in the Annex to this proclamation is no longer 
                a developing country for purposes of this proclamation;

                then I may revise subdivision (b)(iii) of Note 32 in 
                the Annex to this proclamation to remove the relevant 
                country from the list or suspend operation of that 
                subdivision, as appropriate.

[[Page 92020]]

                (6) One year from the termination of the safeguard 
                measure established in this proclamation, the United 
                States note and tariff provisions established in the 
                Annex to this proclamation shall be deleted from the 
                HTS.

                (7) Any provision of previous proclamations and 
                Executive Orders that is inconsistent with the action 
                taken in this proclamation is superseded to the extent 
                of such inconsistency.

                IN WITNESS WHEREOF, I have hereunto set my hand this 
                eighth day of November, 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-
                ninth.
                
                
                    (Presidential Sig.)

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[FR Doc. R1-2024-26714
Filed 11-19-24; 11:15 am]
Billing code 7020-02-C