[Federal Register Volume 83, Number 171 (Tuesday, September 4, 2018)]
[Presidential Documents]
[Pages 45025-45030]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19284]




                        Presidential Documents 



Federal Register / Vol. 83 , No. 171 / Tuesday, September 4, 2018 / 
Presidential Documents

[[Page 45025]]


                Proclamation 9777 of August 29, 2018

                
Adjusting Imports of Steel Into the United States

                By the President of the United States of America

                A Proclamation

                1. On January 11, 2018, the Secretary of Commerce 
                (Secretary) transmitted to me a report on his 
                investigation into the effect of imports of steel 
                articles on the national security of the United States 
                under section 232 of the Trade Expansion Act of 1962, 
                as amended (19 U.S.C. 1862). The Secretary found and 
                advised me of his opinion that steel articles 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. In light of 
                this conclusion, the Secretary recommended action to 
                adjust the imports of steel articles so that such 
                imports will not threaten to impair the national 
                security. The Secretary also recommended that I 
                authorize him, in response to specific requests from 
                affected domestic parties, to exclude from any adopted 
                import restrictions those steel articles for which the 
                Secretary determines there is a lack of sufficient 
                domestic production capacity of comparable products, or 
                to exclude steel articles from such restrictions for 
                specific national security-based considerations.

                2. In Proclamation 9705 of March 8, 2018 (Adjusting 
                Imports of Steel Into the United States), I concurred 
                in the Secretary's finding that steel articles, as 
                defined in clause 1 of Proclamation 9705, as amended by 
                clause 8 of Proclamation 9711 of March 22, 2018 
                (Adjusting Imports of Steel Into the United States), 
                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 these steel 
                articles by imposing a 25 percent ad valorem tariff on 
                such articles imported from most countries. I further 
                authorized the Secretary to provide relief from these 
                additional duties for any steel article determined not 
                to be produced in the United States in a sufficient and 
                reasonably available amount or of a satisfactory 
                quality and also to provide such relief based on 
                specific national security considerations.

                3. Consistent with the Secretary's recommendation that 
                I authorize him to exclude from any adopted import 
                restrictions those steel articles for which the 
                Secretary determines there is a lack of sufficient 
                domestic production of comparable products, or for 
                specific national security-based considerations, I have 
                determined to authorize the Secretary to provide relief 
                from quantitative limitations on steel articles adopted 
                pursuant to section 232 of the Trade Expansion Act of 
                1962, as amended, including those set forth in 
                Proclamation 9740 of April 30, 2018 (Adjusting Imports 
                of Steel Into the United States), and Proclamation 9759 
                of May 31, 2018 (Adjusting Imports of Steel Into the 
                United States), on the same basis as the Secretary is 
                currently authorized to provide relief from the duty 
                established in clause 2 of Proclamation 9705.

                4. In addition, I have been informed that the 
                quantitative limitations set forth in Proclamation 9740 
                and Proclamation 9759 have in some cases already filled 
                for this year, and that projects in the United States 
                employing thousands of workers may be significantly 
                disrupted or delayed because imports of specific steel 
                articles, which were contracted for purchase prior to 
                my decision to adjust imports of these articles, cannot 
                presently be

[[Page 45026]]

                entered into the United States because the quantitative 
                limits have already been reached. In light of these 
                circumstances, and after considering the impact on the 
                economy and the national security objectives of section 
                232 of the Trade Expansion Act of 1962, as amended, I 
                have determined to direct the Secretary to provide 
                relief from the quantitative limitations set forth in 
                Proclamation 9740 and Proclamation 9759 in limited 
                circumstances.

                5. In light of my determinations, I have considered 
                whether it is necessary and appropriate in light of our 
                national security interests to make any corresponding 
                adjustments to the tariff or quotas imposed by previous 
                proclamations. It is my judgment that it is necessary 
                and appropriate, at this time, to maintain the current 
                tariff and quota levels. As directed in Proclamation 
                9705, the Secretary shall continue to monitor imports 
                of steel articles and inform me of any circumstances 
                that, in his opinion, might indicate the need for 
                further action under section 232 of the Trade Expansion 
                Act of 1962, as amended.

                6. The United States continues to hold discussions with 
                countries on satisfactory alternative means to address 
                the threatened impairment to our national security 
                posed by steel articles imports. Should these 
                discussions result in an agreement concerning such 
                alternative means, I will take further action as 
                appropriate.

                7. 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.

                8. 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, DONALD J. TRUMP, President of the 
                United States of America, by the authority vested in me 
                by the Constitution and the laws of the United States 
                of America, including section 232 of the Trade 
                Expansion Act of 1962, as amended, section 301 of title 
                3, United States Code, and section 604 of the Trade Act 
                of 1974, as amended, do hereby proclaim as follows:

                    (1) The Secretary, in consultation with the 
                Secretary of State, the Secretary of the Treasury, the 
                Secretary of Defense, the United States Trade 
                Representative (USTR), the Assistant to the President 
                for National Security Affairs, the Assistant to the 
                President for Economic Policy, and such other senior 
                Executive Branch officials as the Secretary deems 
                appropriate, is hereby authorized to provide relief 
                from the quantitative limitations applicable to steel 
                articles described in subheadings 9903.80.05 through 
                9903.80.58 of subchapter III of chapter 99 of the HTSUS 
                for any steel article determined not to be produced in 
                the United States in a sufficient and reasonably 
                available amount or of a satisfactory quality, and is 
                also authorized to provide such relief based upon 
                specific national security considerations. Such relief 
                shall be provided for a steel article only after a 
                request for relief is made by a directly affected party 
                located in the United States. Such relief may be 
                provided to directly affected parties on a party-by-
                party basis taking into account the regional 
                availability of particular articles, the ability to 
                transport articles within the United States, and any 
                other factors as the Secretary deems appropriate. If 
                the Secretary determines that relief should be granted 
                to a requesting party for the importation of a 
                particular steel article, the Secretary shall publicly 
                post such determination and notify U.S. Customs and 
                Border Protection (CBP) of the Department of Homeland 
                Security concerning such article so that it will be 
                excluded from the applicable quantitative limitation. 
                Relief granted under this clause shall apply only to an 
                article entered for consumption, or withdrawn from 
                warehouse for consumption, on or after the date on 
                which the request for relief is granted by the 
                Secretary. Until such time as any applicable

[[Page 45027]]

                quantitative limitation for a particular article has 
                been reached, CBP shall count any steel article for 
                which relief is granted under this clause toward such 
                quantitative limitation at the time when such steel 
                article is entered for consumption or withdrawn from 
                warehouse for consumption. Any steel article for which 
                relief is granted under this clause shall not be 
                subject to the additional rate of duty set forth in 
                Proclamation 9705, as amended. Steel articles for which 
                relief is granted under this clause shall be subject to 
                the duty treatment provided in subheading 9903.80.60 of 
                subchapter III of chapter 99 of the HTSUS, as 
                established by the Annex to this proclamation.
                    (2) The Secretary shall, on an expedited basis, 
                grant relief from the quantitative limitations set 
                forth in Proclamation 9740 and Proclamation 9759 and 
                their accompanying annexes for any steel article where 
                (i) the party requesting relief entered into a written 
                contract for production and shipment of such steel 
                article before March 8, 2018; (ii) such contract 
                specifies the quantity of such steel article that is to 
                be produced and shipped to the United States consistent 
                with a schedule contained in such contract; (iii) such 
                steel article is to be used to construct a facility in 
                the United States and such steel article cannot be 
                procured from a supplier in the United States to meet 
                the delivery schedule and specifications contained in 
                such contract; (iv) the payments made pursuant to such 
                contract constitute 10 percent or less of the cost of 
                the facility under construction; and (v) lack of relief 
                from the quantitative limitations on such steel article 
                would significantly disrupt or delay completion of the 
                facility being constructed in the United States with 
                the steel article specified in such contract. Until 
                such time as any applicable quantitative limitation for 
                a particular article has been reached, CBP shall count 
                any steel article for which relief is granted under 
                this clause toward such quantitative limitation at the 
                time when such steel article is entered for consumption 
                or withdrawn from warehouse for consumption. Any steel 
                article for which relief is granted under this clause 
                shall be subject to the additional rate of duty set 
                forth in clause 2 of Proclamation 9705, as amended by 
                this proclamation, when such steel article is entered 
                for consumption or withdrawn from warehouse for 
                consumption. This rate of duty is in addition to any 
                other duties, fees, exactions, and charges applicable 
                to such steel article. Any steel article provided 
                relief under this clause must be entered for 
                consumption, or withdrawn from warehouse for 
                consumption, on or before March 31, 2019, and may not 
                be granted further relief by the Secretary under clause 
                3 of Proclamation 9705, as amended. Steel articles for 
                which relief is granted under this clause shall be 
                subject to the duty treatment provided in subheading 
                9903.80.61 of subchapter III of chapter 99 of the 
                HTSUS, as established by the Annex to this 
                proclamation.
                    (3) The Secretary shall grant relief under clause 2 
                of this proclamation only upon receipt of a sworn 
                statement signed by the chief executive officer and the 
                chief legal officer of the party requesting relief. 
                Such statement shall attest that (i) the steel article 
                for which relief is sought and the associated contract 
                meet all of the criteria for relief set forth in clause 
                2 of this proclamation; (ii) the party requesting 
                relief will accurately report to CBP, in the manner 
                that CBP prescribes, the quantity of steel articles 
                entered for consumption, or withdrawn from warehouse 
                for consumption, pursuant to any grant of relief; and 
                (iii) the quantity of steel articles entered pursuant 
                to a grant of relief will not exceed the quantity 
                specified in such contract for delivery on or before 
                March 31, 2019. Upon granting relief under clause 2 of 
                this proclamation, the Secretary shall notify CBP and 
                publish a notice of relief for the quantity of steel 
                articles specified in such contract that are scheduled 
                for delivery on or before March 31, 2019. The Secretary 
                shall revoke any grant of relief under clause 2 of this 
                proclamation if the Secretary determines at any time 
                after such grant that the criteria for relief have not 
                been met and may, if the Secretary deems it 
                appropriate, notify the Attorney General of the facts 
                that led to such revocation.

[[Page 45028]]

                    (4) As soon as practicable, the Secretary shall 
                issue procedures for the requests for exclusion 
                described in clause 1 of this proclamation. The 
                issuance of such procedures is exempt from Executive 
                Order 13771 of January 30, 2017 (Reducing Regulation 
                and Controlling Regulatory Costs). CBP shall implement 
                exclusions granted pursuant to clause 1 or relief 
                provided under clause 2 of this proclamation as soon as 
                practicable.
                    (5) Clause 3 of Proclamation 9705, as amended by 
                Proclamation 9711, is further amended by striking the 
                fourth and fifth sentences and inserting in lieu 
                thereof the following two sentences: ``If the Secretary 
                determines that a particular steel article should be 
                excluded, the Secretary shall publicly post such 
                determination and notify U.S. Customs and Border 
                Protection (CBP) of the Department of Homeland Security 
                concerning such article so that it will be excluded 
                from the duties described in clause 2 of this 
                proclamation. For merchandise entered for consumption, 
                or withdrawn from warehouse for consumption, on or 
                after the date the duty established under this 
                proclamation is effective and with respect to which 
                liquidation is not final, such relief shall be 
                retroactive to the date the request for relief was 
                accepted by the Department of Commerce.''.
                    (6) In order to establish the duty rate on imports 
                of steel articles for which relief is granted under 
                clause 2 of this proclamation, clause 2 of Proclamation 
                9705, as amended, is further amended by striking the 
                last sentence and inserting in lieu thereof the 
                following two sentences: ``All steel articles imports 
                covered by subheading 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 daylight 
                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.''.
                    (7) Where the government of a country identified in 
                the superior text to subheadings 9903.80.05 through 
                9903.80.58 of subchapter III of chapter 99 of the HTSUS 
                notifies the United States that it has established a 
                mechanism for the certification of exports to the 
                United States of products covered by the quantitative 
                limitations applicable to these subheadings, and where 
                such mechanism meets the operational requirements for 
                participation in an export certification system 
                administered by the United States, CBP, in consultation 
                with the Secretary, USTR, and other relevant executive 
                departments and agencies, may require that importers of 
                these products furnish relevant export certification 
                information in order to qualify for the treatment set 
                forth in subheadings 9903.80.05 through 9903.80.58. 
                Where CBP adopts such a requirement, it shall publish 
                in the Federal Register notice of the requirement and 
                procedures for the submission of relevant export 
                certification information. No article that is subject 
                to the export certification requirement announced in 
                such notice may be entered for consumption, or 
                withdrawn from warehouse for consumption, on or after 
                the effective date specified in such notice, except 
                upon presentation of a valid and properly executed 
                certification, in accordance with the procedures set 
                forth in the notice.
                    (8) Subdivision (c) of U.S. note 16 to subchapter 
                III of chapter 99 of the HTSUS is amended by inserting 
                at the end the following new sentence: ``Pursuant to 
                subheadings 9903.80.60 and 9903.80.61 and superior text 
                thereto, the Secretary may provide that any excluded 
                product shall be granted entry into the customs 
                territory of the United States when the applicable 
                quantitative limitation has filled for the specified 
                period for such good.''.
                    (9) Subdivision (d) of U.S. note 16 to subchapter 
                III of chapter 99 of the HTSUS is amended by inserting 
                after ``9903.80.58'' the phrase ``and 9903.80.60 and 
                9903.80.61''.

[[Page 45029]]

                    (10) The rate of duty specified in the HTSUS in the 
                general column for heading 9903.80.01 is amended by 
                striking ``25%'' and inserting in lieu thereof: ``The 
                duty provided in the applicable subheading + 25%''.
                    (11) The rate of duty specified in the HTSUS in the 
                general column for heading 9903.80.02 is amended by 
                striking ``50%'' and inserting in lieu thereof: ``The 
                duty provided in the applicable subheading + 50%''.
                    (12) The superior text for subheadings 9903.80.05 
                through 9903.80.58 of the HTSUS is amended by deleting 
                ``Iron'' and inserting in lieu thereof: ``Except as 
                provided in subheadings 9903.80.60 and 9903.80.61, 
                iron''.
                    (13) To implement clauses 1 and 2 of this 
                proclamation, subchapter III of chapter 99 of the HTSUS 
                is modified as provided in the Annex to this 
                proclamation.
                    (14) The modifications to the HTSUS made by clauses 
                8 through 13 of this proclamation and the Annex to this 
                proclamation shall be effective with respect to goods 
                entered for consumption, or withdrawn from warehouse 
                for consumption, on or after 12:01 a.m. eastern 
                daylight time on August 30, 2018, and shall continue in 
                effect, unless such actions are expressly reduced, 
                modified, or terminated.
                    (15) Clause 5 of Proclamation 9705 is amended by 
                inserting ``for consumption'' after ``goods entered'' 
                in the first sentence. Clause 5 of Proclamation 9711, 
                as amended, is amended by striking ``by this 
                proclamation'' from the end of the second sentence. 
                Clause 6 of Proclamation 9740 is amended by striking 
                ``by clause 1 of this proclamation''.
                    (16) The Secretary, in consultation with CBP and 
                other relevant executive departments and agencies, 
                shall revise the HTSUS so that it conforms to the 
                amendments directed by this proclamation. The Secretary 
                shall publish any such modification to the HTSUS in the 
                Federal Register.
                    (17) 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-ninth day of August, in the year of our Lord two 
                thousand eighteen, and of the Independence of the 
                United States of America the two hundred and forty-
                third.
                <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>
                
                    (Presidential Sig.)

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[FR Doc. 2018-19284
Filed 8-31-18; 11:15 am]
Billing code 7020-02-C