Document ID: BIS-2020-0035-0001
Agency: bis
Document Type: Rule
Title: Procedures to Grant Relief from the Quantitative Limitation Applicable to Certain Steel Articles for Brazil for Parties with Preexisting Contracts that Meet Specified Criteria
Posted Date: 2020-10-13T04:00Z

[Federal Register Volume 85, Number 198 (Tuesday, October 13, 2020)]
[Rules and Regulations]
[Pages 64377-64383]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-22608]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 705

[Docket No. 201006-0266]
RIN 0694-AI26

Procedures To Grant Relief From the Quantitative Limitation 
Applicable to Certain Steel Articles for Brazil for Parties With 
Preexisting Contracts That Meet Specified Criteria

AGENCY: Bureau of Industry and Security, U.S. Department of Commerce.

ACTION: Temporary final rule.

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SUMMARY: This temporary final rule establishes procedures to grant 
relief from the quantitative limitation applicable to certain steel 
articles for Brazil for parties with preexisting contracts that meet 
specified criteria as authorized by the President as part of the action 
he took to adjust imports under Section 232 of the Trade Expansion Act 
of 1962, as amended (``section 232'').

DATES: Effective date: This temporary final rule is effective October 
13, 2020, through December 31, 2020.

[[Page 64378]]

    See SUPPLEMENTARY INFORMATION section for information on submitting 
certifications for relief from the quantitative limitation for Brazil 
for steel articles.

ADDRESSES: All certifications for relief from the quantitative 
limitation for Brazil for steel articles on this temporary final rule 
must be submitted through the email: steel232-exp@bis.doc.gov.

FOR FURTHER INFORMATION CONTACT: For questions regarding this temporary 
final rule, contact Erika Maynard at 202-482-5572 or via email 
Erika.Maynard@bis.doc.gov, or to fd8e89989891cfcecfd098858dbd9f948ed399929ed39a928b.

SUPPLEMENTARY INFORMATION:

Background

    On August 28, 2020, President Trump issued Proclamation 10064 (85 
FR 54877), Adjusting Imports of Steel Into the United States, which 
lowered one of the section 232 quantitative limitations applicable to 
Brazil for the remainder of 2020 and added a new basis for relief from 
those lowered quantitative limitations. The President determined that 
the modification to the quantitative limitations applicable to certain 
steel products was necessary to preserve the effectiveness of the 
alternative means to address the threatened impairment of national 
security posed by steel article imports which were previously agreed to 
with Brazil. This temporary final rule implements the President's 
directive to the Secretary of Commerce (Secretary) to grant relief from 
the modified quantitative limitations in a limited aggregate amount 
under specific circumstances related to the fulfillment of existing 
contracts.

Background on Quantitative Limitations Applicable to Brazil

    On January 11, 2018, the Secretary transmitted to President Trump a 
report on his 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 President Trump that 
steel articles were 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 Proclamation 9705 of March 8, 2018 (Adjusting Imports of Steel 
Into the United States) (83 FR 11625), President Trump concurred in the 
Secretary's finding that certain steel articles were 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.
    In Proclamation 9705, President Trump further stated that any 
country with which the United States has a security relationship is 
welcome to discuss with the United States alternative ways to address 
the threatened impairment of the national security caused by imports 
from that country. The President 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 he determines 
that imports from that country no longer threaten to impair the 
national security, the President may remove or modify the restriction 
on steel article imports from that country.

Alternative Means To Address the Threatened Impairment to U.S. National 
Security Posed by Steel Articles Imported From Brazil

    In Proclamation 9759 of May 31, 2018 (Adjusting Imports of Steel 
Into the United States) (85 FR 25857), President Trump noted that the 
United States had agreed on measures with Brazil that would provide 
effective, long-term alternative means to address Brazil's contribution 
to the threatened impairment to our national security. These included 
quantitative limitations that restrict the volume of steel articles 
imported into the United States from Brazil. In light of these agreed-
upon measures, President Trump determined that steel article imports 
from Brazil would no longer threaten to impair the national security 
and decided to exclude Brazil from the tariff proclaimed in 
Proclamation 9705, as amended.

Monitoring Implementation of Quantitative Limitations

    In Proclamation 9759, President Trump also noted that the United 
States would monitor the implementation and effectiveness of the 
quantitative limitations applicable to steel article imports from 
Brazil, and directed the Secretary to inform him of any circumstance 
that in the Secretary's opinion might indicate that an adjustment of 
the quantitative limitation is necessary.
    The Secretary has advised President Trump that there have been 
significant changes in the United States steel market since the 
President decided to exclude Brazil, on a long-term basis, from the 
tariff proclaimed in Proclamation 9705, as amended. The United States 
steel market has contracted in 2020. After increasing in 2018 and 2019, 
steel shipments by domestic producers through June of this year were 
approximately 15 percent lower than shipments for the same time period 
in 2019, with shipments in April and May of this year more than 30 
percent lower than the shipments in the same months in 2019. The 
Secretary has further advised President Trump that domestic producers' 
adjusted year-to-date capacity utilization rate through August 15, 2020 
is below 70 percent and that the rate has been near or below 60 percent 
since the second week of April. Brazil is the second largest source of 
steel imports to the United States and the largest source of imports of 
semi-finished steel products. Moreover, while imports from most 
countries have declined this year in a manner commensurate with this 
contraction, imports from Brazil have decreased only slightly.

Actions Taken To Address Significant Changes in the United States Steel 
Market

    In light of these significantly changed market conditions, 
President Trump determined in Proclamation 10064 that absent 
modifications, the alternative measures applicable to Brazilian steel 
imports would be ineffective in eliminating the threat to the national 
security posed by imports of such articles in the current environment. 
The United States and Brazil have held consultations regarding Brazil's 
steel exports to the United States in light of the changed market 
conditions. As a result of these discussions, the United States will 
lower, for the remainder of 2020, one of the quantitative limitations 
set forth in Proclamation 9759 applicable to steel articles imported 
from Brazil.
    In President Trump's judgment, this modification will preserve the 
effectiveness of the alternative means to address the threatened 
impairment to U.S. national security by further restraining steel 
article exports to the United States from Brazil during the current 
period of market contraction. In light of these modifications, 
President Trump has determined that steel article imports from Brazil 
will not threaten to impair the national security and thus has decided 
to continue to exclude Brazil from the tariff proclaimed in 
Proclamation 9705, as amended. The United States and Brazil will hold 
further consultations in December 2020 to discuss the state of the 
steel trade

[[Page 64379]]

between the two countries in light of then-prevailing market 
conditions.

Ensuring That Lowered Quantitative Limitations for Brazil Do Not Delay 
or Disrupt Specific Production Activities in the United States Already 
Contracted for Delivery

    President Trump in Proclamation 10064 noted that he has been 
informed that a reduction in the quantitative limitation set forth in 
Proclamation 9759 applicable to certain steel article imports from 
Brazil may delay or disrupt specific production activities in the 
United States for which imports of the steel articles covered by the 
quantitative limitations have already been contracted for delivery in 
the fourth quarter of this year. In light of these circumstances, and 
after considering the impact on the economy and the national security 
objectives of section 232, President Trump in Proclamation 10064 
determined to direct the Secretary to provide relief from the modified 
quantitative limitations in certain limited circumstances specified in 
more detail below and in paragraph (j) of this rule. This relief is in 
addition to the relief from the quantitative limitations that the 
Secretary is already authorized to provide pursuant to clause 1 of 
Proclamation 9777 of August 29, 2018 (Adjusting Imports of Steel Into 
the United States) (83 FR 45025). However, exclusion requests submitted 
under paragraph (j) involve different criteria and procedures than 
those submitted under existing paragraph (c) and determined pursuant to 
the criteria and procedures described in existing paragraphs (a)-(i). 
In addition, the Secretary may not, prior to January 1, 2021, grant 
relief under paragraph (c) for steel articles for which relief is 
granted under paragraph (j).
    Proclamation 10064 sets forth several directives that are being 
implemented in this rule. Clause 1 of Proclamation 10064 specifies that 
the quantitative limitation applicable to imports of steel articles 
classified under subheading 9903.80.57 of subchapter III of chapter 99 
of the HTSUS from Brazil are being lowered for the remainder of 
calendar year 2020, and specifies that the new quantitative limitation 
is described in the Annex to the proclamation. For calendar year 2021 
and for subsequent years, the annual aggregate limit for steel articles 
classified under this subheading from Brazil reverts to the annual 
aggregate limit for Brazil set forth in the Annex to Proclamation 9759, 
unless that limit is further modified or terminated by President Trump.
    Under clause 2 of Proclamation 10064, President Trump directed that 
the Secretary shall, on an expedited basis, grant relief from the 
modified quantitative limitation now applicable to subheading 
9903.80.57 of subchapter III of chapter 99 of the HTSUS for Brazil for 
any steel article where:
    (i) The party requesting relief entered into a contract or other 
written agreement for the production and shipment of such steel article 
before August 28, 2020;
    (ii) such agreement specifies the quantity of such steel article 
that is to be produced and shipped to the United States prior to 
December 31, 2020;
    (iii) such steel article is to be used in production activities in 
the United States and such steel article cannot be procured from 
another supplier to meet the delivery schedule and specifications 
contained in such agreement; and
    (iv) lack of relief from the quantitative limitation on such steel 
article would significantly disrupt the production activity in the 
United States for which the steel article specified in such agreement 
is intended.
    Also under clauses 2 and 5, President Trump specified that the 
volume of imports for which the Secretary grants relief under this 
clause shall not exceed 60,000,000 kilograms in the aggregate, and 
under clauses 1 and 5 that any steel article for which relief is 
granted must be entered for consumption or withdrawn from warehouse for 
consumption on or before December 31, 2020. Also under clause 5, 
President Trump further provided that the Secretary may not, prior to 
January 1, 2021, grant further relief for such an article through the 
preexisting exclusion request process (set out in paragraphs (a)-(i) of 
this supplement) applicable to items not available in the United States 
in sufficient or reasonably available quantity or of satisfactory 
quality or based on specific national security considerations, as 
provided for by clause 1 of Proclamation 9777.
    Under clause 3 of Proclamation 10064, President Trump directed that 
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, 
attesting that:
    (i) The steel article for which relief is sought and the associated 
contract or other written agreement meet the criteria for relief set 
forth in clause 2(i) through (iv) of Proclamation 10064;
    (ii) the party requesting relief will accurately report to U.S. 
Customs and Border Protection (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 for which the Secretary has granted 
relief.
    Clause 3 of Proclamation 10064 also specified that the Secretary 
shall notify CBP of any grant of relief made pursuant to Proclamation 
10064. Clause 3 further provided that the Secretary shall revoke any 
grant of relief under clause 2 of the 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.
    Under clause 4 of Proclamation 10064, President Trump directed that 
as soon as practicable, the Secretary shall issue procedures for the 
requests for relief described in clauses 2 and 3 of the proclamation, 
which BIS is doing on behalf of the Secretary with the publication of 
this temporary final rule. Lastly, clause 4 specified that CBP shall 
implement relief provided under clause 2 of this proclamation as soon 
as practicable.
    Under clause 5 of Proclamation 10064, until the modified 
quantitative limitation provided under subheading 9903.80.57 of 
subchapter III of chapter 99 of the HTSUS from Brazil has been reached, 
CBP will count steel articles granted relief under clause 2 of 
Proclamation 10064 toward that modified quantitative limitation when 
the steel article is entered for consumption or withdrawn from 
warehouse for consumption. (Clause 5 also provides that steel articles 
for which relief is granted pursuant to clause 2 of Proclamation 10064 
shall be subject to the duty treatment provided in subheading 
9903.80.62 of subchapter III of chapter 99 of the HTSUS for Brazil, as 
established by the Annex to Proclamation 10064).

Changes Made in This Temporary Final Rule

    In Supplement No. 1 to Part 705--Requirements for Submissions 
Requesting Exclusions from the Remedies Instituted in Presidential 
Proclamation 9705 of March 8, 2018 Adjusting Imports of Steel Articles 
into the United States, under new paragraph (j) (Certification for 
requesting relief from quantitative limitation for Brazil), this 
temporary final rule makes the following changes:
    In Note to paragraph (c)(2), this temporary final rule adds one 
sentence to the end of this note to provide a cross

[[Page 64380]]

reference to new paragraph (j) which is added by this rule. The Note to 
paragraph (c)(2) provides guidance to directly affected individuals or 
organizations located in the United States seeking exclusions from 
quantitative limitations imposed on certain countries. The new sentence 
that this rule adds to the note specifies that directly affected 
individuals or organizations located in the United States and importing 
steel articles from Brazil, a country subject to quantitative 
limitations, should first review new paragraph (j) prior to submitting 
any exclusion requests.
    This temporary final rule adds new paragraph (j) to describe the 
requirements to request relief from the quantitative limitations 
applicable to steel article imports from Brazil under the new process 
created by clause 2 of Proclamation 10064. The introductory text of 
paragraph (j) provides background on the quantitative limitations for 
steel articles for Brazil. This introductory text references 
Proclamation 9759 on May 31, 2018 and the most recent Proclamation 
10064 of August 28, 2020. The introductory text explains that paragraph 
(j) provides a process for relief separate from the section 232 
exclusions process as required by Proclamation 10064. Under this 
process a party may request relief from the quantitative limitation for 
certain steel articles from Brazil, which will be approved by the 
Department of Commerce (the ``Department'') under stated criteria.
    Paragraph (j) describes the requirements for a party to obtain this 
relief, how the Department reviews these requests for relief, the 
administration and use of granted requests of relief, and when 
revocation of grants of relief may occur. These procedures are all 
contained in paragraph (j), which unless extended on or before December 
31, 2020, will be removed from the regulations on January 1, 2021. This 
process of requesting grants for relief from the quantitative 
limitations for Brazil is a separate process from the 232 exclusions 
process described elsewhere in supplement no. 1 to part 705.
    New paragraph (j) consists of five paragraphs: (j)(1) (Sworn 
statement required to grant relief); (j)(2) (Where to submit requests 
for grants of relief?); (j)(3) (Disposition of requests for grants of 
relief); (j)(4) (Administration and use of granted requests of relief); 
and (j)(5) (Revocation of grants of relief).
    New paragraph (j)(1) specifies that pursuant to clause 3 of 
Proclamation 10064, the Secretary will grant relief from the lowered 
quantitative limitation for steel articles under subheading 9903.80.57 
of subchapter III of chapter 99 of the HTSUS for Brazil only upon 
receipt of a sworn statement signed by the chief executive officer and 
the chief legal officer of the party requesting relief. The sworn 
statement made under new paragraph (j)(1) must attest to the criteria 
specified in paragraphs (j)(1)(i) to (iii). These criteria are required 
in order to determine whether the steel article for which relief is 
sought and the associated contract or other written agreement meet the 
criteria for relief set forth in clause 2(i) through (iv) of 
Proclamation 10064.
    The party requesting relief must certify under paragraph 
(j)(1)(i)(A) that they entered into a contract or other written 
agreement for the production and shipment of such steel article before 
August 28, 2020. The party requesting relief must also include in the 
certification a description of the steel article by HTS classification 
and Chapter 99 quota category HTS classification. The certification 
must also specify under paragraph (j)(1)(i)(B) that the associated 
contract or other written agreement states the quantity of such steel 
article that is to be produced and shipped to the United States prior 
to December 31, 2020. The party requesting relief must certify under 
paragraph (j)(1)(i)(C) that such steel article is to be used in 
production activities in the United States. This includes certifying 
that such steel article cannot be procured from another supplier to 
meet the delivery schedule and specifications contained in such 
agreement. Lastly, under the certification requirement under paragraph 
(j)(1)(i)(D), the party requesting relief must certify that lack of 
relief from the quantitative limitation on such steel article would 
significantly disrupt the production activity in the United States for 
which the steel article specified in such agreement is intended.
    Requesters are required to comply with the certification 
requirement under paragraph (j)(1)(ii) in order to ensure that if 
approved, the relief provided can be properly administered and enforced 
by CBP. Specifically, the party requesting relief must 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. The last requirement of 
the certification under paragraph (j)(1)(iii) is to acknowledge that 
the requester will not, in entering steel articles pursuant to any 
grant of relief, exceed the quantity for which the Secretary grants 
relief.
    Under new paragraph (j)(2), this temporary final rule specifies 
where to submit requests for grants of relief. This paragraph specifies 
that all requests for grants of relief pursuant to paragraph (j) must 
be in electronic form and submitted by email to steel232-exp@bis.doc.gov. This paragraph specifies that in order to submit a 
request for a grant of relief under paragraph (j), the request must be 
submitted as an attachment to the email sent to steel232-exp@bis.doc.gov. Paragraph (j)(2) specifies the only information 
required to be submitted for these requests is the sworn statement 
under paragraph (j)(1).
    New paragraph (j)(3) describes how the Department will dispose of 
requests for grants of relief. Paragraph (j)(3) specifies that the 
Department will grant requests for relief that meet the criteria 
specified in paragraphs (j)(1) and (2) until such time as the maximum 
quantity under this relief program is met. Paragraph (j)(3) specifies 
that pursuant to Proclamation 10064, the volume of imports for which 
the Secretary grants relief under this paragraph shall not exceed 
60,000,000 kilograms in the aggregate. The Department will use a 
``first submitted, first approved'' process until such time as the 
maximum aggregate limit has been approved and will not accept 
submissions after this limit is reached.
    This rule also adds a Note to paragraph (j)(3) to provide guidance 
on when the Department will deny a requested grant for relief. This 
note specifies that denials will occur if the sworn statement does not 
meet the requirements specified in paragraphs (j)(1) and (2). It also 
specifies that requests for relief will be denied to the extent 
granting the request would result in the aggregate amount of imports 
for which relief is granted under paragraph (j) exceeding 60,000,000 
kilograms. This note also clarifies that once the aggregate amount of 
approved grants for relief reaches 60,000,000 kilograms, the Department 
will post a statement on the BIS website under www.bis.doc.gov/232-steel-Brazil to alert requesters that the aggregate limit has been 
reached, so that they are informed that they may no longer submit 
requests for grants of relief. This statement will save time for 
requesters, as well as the Department.
    This temporary final rule adds new paragraph (j)(4) to specify how 
granted requests for relief will be administered and the validity 
periods for these granted requests for relief. Any relief granted under 
paragraph (j) will only be valid if the subject steel article is 
entered for consumption, or withdrawn from warehouse for consumption, 
on or before December 31, 2020. Paragraph

[[Page 64381]]

(j)(4) also specifies that further relief may not be granted for such 
article by the Secretary under clause 1 of Proclamation 9777.
    This temporary final rule adds new paragraph (j)(5) to specify when 
the Secretary may revoke grants of relief made pursuant to paragraph 
(j). Paragraph (j)(5) specifies that the Secretary will revoke any such 
grant of relief if the Secretary determines at any time after relief is 
granted that the criteria for relief have not been met. Paragraph (j) 
also specifies that if the Secretary deems it appropriate, he may 
notify the Attorney General of the facts that led to such revocation.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has been determined to be a ``significant 
regulatory action,'' although not economically significant, under 
section 3(f) of Executive Order 12866. Pursuant to clause 4 of 
Proclamation 10064 of August 28, 2020, this rule is exempt from 
Executive Order 13771 (85 FR 54877, September 2, 2020).
    2. The Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) 
(PRA) provides that an agency generally cannot conduct or sponsor a 
collection of information, and no person is required to respond to nor 
be subject to a penalty for failure to comply with a collection of 
information, unless that collection has obtained Office of Management 
and Budget (OMB) approval and displays a currently valid OMB Control 
Number.
    This temporary final regulation involves one collection currently 
approved by OMB with the following control number: Procedures for 
Submitting Requests for Expedited Relief from Quantitative Limits--
Existing Contract: Section 232 National Security Investigations of 
Steel Imports (OMB control number 0694-0140).
    BIS is making a change to this collection for OMB control number 
0694-0140 to account for the certification in the form of a sworn 
statement that needs to be made and submitted to the Department by 
requesters via email to steel232-exp@bis.doc.gov under Supplement No. 1 
to 15 CFR part 705, paragraphs (j)(1) and (2), when requesting relief 
from the quantitative limitation applicable to Brazil for certain steel 
articles. Any comments regarding the collection of information 
associated with this rule, including suggestions for reducing the 
burden, may be sent to Jasmeet K. Seehra, Office of Management and 
Budget (OMB), by email to Jasmeet_K._Seehra@omb.eop.gov, or online at 
https://www.reginfo.gov/public/do/PRAMain.
    3. This rule does not contain policies with Federalism implications 
as that term is defined in Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public comment, and a delay in effective date are inapplicable because 
this regulation involves a military or foreign affairs function of the 
United States. (See 5 U.S.C. 553(a)(1)). The reduction in the 
quantitative limitation for certain steel articles from Brazil is 
needed to protect U.S. national security interests in light of recent 
deterioration in the U.S. steel industry that was being further harmed 
by steel imports from Brazil, as described further below. This needed 
measure to protect U.S. national security could also result in adverse 
impacts on certain parties in the United States that import steel 
articles from Brazil, so this rule creates a process to allow those 
parties to request relief that meet specified criteria. Creating this 
process to allow parties to request relief is needed to ensure that the 
required actions needed to protect U.S. national security can be taken 
without doing unintended harm to other parts of the U.S. economy and 
national security.
    As explained in the report submitted by the Secretary to the 
President on January 11, 2018, steel is being imported into the United 
States in such quantities or under such circumstances as to threaten to 
impair the national security of the United States and therefore the 
President has implemented these remedial adjustments of imports (as 
described in in Proclamation 9705 of March 8, 2018, as amended) to 
protect U.S. national security interests.
    In Proclamation 9759, President Trump directed the Secretary to 
monitor implementation of quantitative limitations applicable to steel 
article imports from Brazil and inform him of any circumstance that in 
the Secretary's opinion might indicate that an adjustment of the 
quantitative limitation is necessary. The Secretary has advised 
President Trump that there have been significant changes in the United 
States steel market since the time President Trump decided to exclude, 
on a long-term basis, Brazil from the tariff proclaimed in Proclamation 
9705.
    The United States steel market has contracted in 2020. After 
increasing in 2018 and 2019, steel shipments by domestic producers 
through June of this year are approximately 15 percent lower than 
shipments for the same time period in 2019, with shipments in April and 
May of this year more than 30 percent lower than the shipments in the 
same months in 2019. The Secretary has further advised President Trump 
that domestic producers' adjusted year-to-date capacity utilization 
rate through August 15, 2020 is below 70 percent and that the current 
rate has been near or below 60 percent since the second week of April. 
Brazil is also the second largest source of steel imports to the United 
States and the largest source of imports of semi-finished steel 
products. Moreover, imports from most countries have declined this year 
in a manner commensurate with this contraction, whereas imports from 
Brazil have decreased only slightly.
    In light of these significantly changed market conditions, 
President Trump determined in Proclamation 10064 that the alternative 
measures regarding Brazilian steel imports, without any modifications, 
would be ineffective in eliminating the threat to the national security 
posed by imports of such articles in the current environment. The 
United States and Brazil have held consultations regarding Brazil's 
steel exports to the United States. As a result of these discussions, 
the United States will lower, for the remainder of 2020, one of the 
quantitative limitations set forth in Proclamation 9759 applicable to 
steel articles imported from Brazil. In President Trump's judgment, 
this modification will preserve the effectiveness of the alternative 
means to address the threatened impairment to U.S. national security by 
further restraining steel article exports to the United States from 
Brazil during this period of market contraction. In light of this 
modification, President Trump has determined that steel article imports 
from Brazil will not threaten to impair the national security and thus 
has decided to continue to exclude Brazil from the tariff proclaimed in 
Proclamation 9705, as amended.
    President Trump in Proclamation 10064 noted that he has been 
informed that a reduction in this quantitative limitation set forth in 
Proclamation 9759 applicable to steel article imports from Brazil may 
delay or disrupt specific production activities in the

[[Page 64382]]

United States for which imports of steel articles covered by the 
quantitative limitation have already been contracted for delivery in 
the fourth quarter of this year. In light of these circumstances, and 
after considering the impact on the economy and the national security 
objectives of section 232, President Trump directed the Secretary in 
Proclamation 10064 to provide relief from the modified quantitative 
limitations in certain limited circumstances specified in paragraph (j) 
of this rule.
    The implementation of the President's directive includes the 
creation of a process by which domestic parties can submit a 
certification requesting relief from this modified quantitative 
limitation for Brazil. Establishing these procedures in this temporary 
final rule are needed to ensure that the reduction in this quantitative 
limitation for Brazil can occur as needed to protect U.S. national 
security interests while not causing unintended economic harm for those 
affected parties in the U.S. with existing contracts that meet the 
specified criteria in this rule.
    In addition, the Department finds that there is good cause under 5 
U.S.C. 553(b)(B) to waive the provisions of the Administrative 
Procedure Act requiring prior notice and the opportunity for public 
comment and under 5 U.S.C. 553(d)(1) and (d)(3) to waive the delay in 
effective date because this rule is a substantive rule which grants or 
recognizes an exemption and such delays would be either impracticable 
or contrary to the public interest.
    Under clause 4 of Proclamation 10064, President Trump directed that 
as soon as practicable, the Secretary shall issue procedures for the 
requests for relief described in clauses 2 and 3 of this proclamation, 
which BIS is doing on behalf of the Secretary with the publication of 
this temporary final rule. Clause 4 also specified that CBP shall 
implement relief provided under clause 2 of this proclamation as soon 
as practicable, which is also contingent on the publication of this 
temporary final rule. If this rule was delayed for public comment, 
those impacted parties that are intended to benefit from this relief 
would not be allowed to benefit from this exemption and may not be able 
to import steel articles from Brazil when above the reduced 
quantitative limitations.
    The provisions of new paragraph (j) are of a temporary nature. As 
directed by President Trump, any steel article for which relief is 
granted under clause 2 of Proclamation 10064 must be entered for 
consumption, or withdrawn from warehouse for consumption, on or before 
December 31, 2020. Because of the immediate need for these provisions 
and the short term during which these provisions will be effective 
(i.e., from October 13, 2020 through December 31, 2020), it would be 
impractical to allow for public comments or a delay in effective date 
because by the time the changes became effective the public would have 
very little time to benefit from these changes.
    Because a notice of proposed rulemaking and an opportunity for 
prior public comment are not required for this rule by 5 U.S.C. 553, or 
by any other law, the analytical requirements of the Regulatory 
Flexibility Act, 5 U.S.C. 601 et seq., are not applicable. Accordingly, 
no regulatory flexibility analysis is required and none has been 
prepared.

List of Subjects in 15 CFR Part 705

    Administrative practice and procedure, Business and industry, 
Classified information, Confidential business information, Imports, 
Investigations, National security.

    For the reasons set forth in the preamble, part 705 of subchapter A 
of 15 CFR chapter VII is amended as follows:

PART 705--[AMENDED]

0
1. The authority citation for part 705 continues to read as follows:

    Authority: Section 232 of the Trade Expansion Act of 1962, as 
amended (19 U.S.C. 1862) and Reorg. Plan No. 3 of 1979 (44 FR 69273, 
December 3, 1979).

0
2. Supplement No. 1 to part 705 is amended:
0
a. By revising the heading;
0
b. By adding one sentence to the end of Note to Paragraph (c)(2); and
0
c. By adding paragraph (j).
    The additions and revision read as follows:

Supplement No. 1 to Part 705--Requirements for Submissions Requesting 
Exclusions From the Remedies Instituted in Presidential Proclamations 
Adjusting Imports of Steel Articles Into the United States

* * * * *
    (c) * * *
    (2) * * *

    Note to paragraph (c)(2): * * * Parties intending to request an 
exclusion from quantitative limitations applicable to imports of 
items classified under subheading 9903.80.57 of subchapter III of 
chapter 99 of the HTSUS for Brazil should consult paragraph (j) of 
this supplement prior to submitting an exclusion request.

* * * * *
    (j) Certification for requesting relief from quantitative 
limitation for Brazil. Brazil is a country subject to quantitative 
limitations for steel articles. Pursuant to Proclamation 10064 of 
August 28, 2020, the United States will lower, for the remainder of 
2020, one of the quantitative limitations set forth in Proclamation 
9759 of May 31, 2018 (Adjusting Imports of Steel Into the United 
States) applicable to certain steel articles imported from Brazil in 
order to protect U.S. national security interests. President Trump in 
Proclamation 10064 noted that he has been informed that a reduction in 
this quantitative limitation set forth in Proclamation 9759 applicable 
to steel article imports from Brazil may delay or disrupt specific 
production activities in the United States for which imports of steel 
articles covered by this quantitative limitation have already been 
contracted for delivery in the fourth quarter of 2020. 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, President Trump in Proclamation 
10064 directed the Secretary to provide relief from this modified 
quantitative limitation in certain limited circumstances that are 
specified in Proclamation 10064 and repeated in this paragraph (j). 
This authority is in addition to the relief from the quantitative 
limitations that the Secretary is already authorized to provide 
pursuant to clause 1 of Proclamation 9777 of August 29, 2018 (Adjusting 
Imports of Steel Into the United States), and involves different 
exclusion criteria and procedures. This paragraph (j) describes what 
must be done to obtain this relief, how the U.S. Department of Commerce 
reviews these requests for relief, the administration and use of 
granted requests of relief, and when revocation of grants of relief may 
occur.
    (1) Sworn statement required to grant relief. The Secretary will 
grant relief from the modified quantitative limitation applicable to 
imports of steel articles classified under subheading 9903.80.57 of 
subchapter III of chapter 99 of the HTSUS from Brazil only upon receipt 
of a sworn statement signed by the chief executive officer and the 
chief legal officer of the party requesting relief, attesting to the 
following criteria:
    (i) The steel article for which relief is sought, (insert 
description here of the steel article by HTS classification and Chapter 
99 quota category HTS classification), and the associated contract or 
other written agreement meet the criteria for relief set forth in 
clause 2(i) through (iv) of Proclamation 10064, described here under 
paragraphs

[[Page 64383]]

(j)(1)(i)(A) through (D) of this supplement:
    (A) The party requesting relief entered into a contract or other 
written agreement for the production and shipment of such steel article 
before August 28, 2020;
    (B) Such agreement specifies the quantity of such steel article 
that is to be produced and shipped to the United States prior to 
December 31, 2020;
    (C) Such steel article is to be used in production activities in 
the United States and such steel article cannot be procured from 
another supplier to meet the delivery schedule and specifications 
contained in such agreement; and
    (D) Lack of relief from the quantitative limitation on such steel 
article would significantly disrupt the production activity in the 
United States for which the steel article specified in such agreement 
is intended;
    (ii) The party requesting relief will accurately report to U.S. 
Customs and Border Protection (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 for which the Secretary has granted 
relief.
    (2) Where to submit requests for grants of relief? All exclusion 
requests for grants of relief pursuant to this paragraph (j) must be in 
electronic form and submitted to BIS by email: steel232-exp@bis.doc.gov. In order to submit a request for a grant of relief, 
you must submit your request for a grant of relief as an attachment to 
the email sent to steel232-exp@bis.doc.gov. The only documentation 
required for a request for a grant of relief is the sworn statement 
required under paragraph (j)(1) of this supplement. There are no 
objection, rebuttal, or surrebuttal submissions or review periods, and 
no provisions of the exclusion request process specified in this 
supplement apply except those provided in this paragraph (j).
    (3) Disposition of requests for grants of relief. The U.S. 
Department of Commerce will grant requests for relief that meet the 
criteria specified in paragraphs (j)(1) and (2) of this supplement 
until such time as the maximum quantity under this relief program is 
met, and will post granted requests publicly on the BIS website as 
described below. In Proclamation 10064 under clause 2, President Trump 
specified that the volume of imports for which the Secretary grants 
relief under this clause shall not exceed 60,000,000 kilograms in the 
aggregate and this paragraph (j)(3) imposes this same limitation. The 
Department will use a ``first submitted, first approved'' process until 
such time as the maximum aggregate limit has been approved and will not 
accept submissions after this limit is reached. The Secretary will 
notify CBP of any grant of relief made pursuant to this proclamation.

    Note to paragraph (j)(3): Denials will occur if the sworn 
statement does not meet all of the requirements specified in 
paragraphs (j)(1) and (2) of this supplement, or will be denied to 
the extent the amount of imports for which the Secretary has granted 
relief under this paragraph (j)(3) would exceed 60,000,000 kilograms 
in the aggregate. Once the aggregate amount of approved grants for 
relief reaches 60,000,000 kilograms, the U.S. Department of Commerce 
will post a statement on the BIS website under www.bis.doc.gov/232-steel-Brazil to alert other requesters that the aggregate limit has 
been reached, and no more requests will be approved.

    (4) Administration and use of granted requests of relief. Any 
relief granted under paragraph (j)(3) of this supplement will only be 
valid if the subject steel article is entered for consumption, or 
withdrawn from warehouse for consumption, on or before December 31, 
2020. Where a party has received relief under the provisions of this 
paragraph (j), they are not eligible for further relief under clause 1 
of Proclamation 9777 prior to January 1, 2021, for the same steel 
article pursuant to an exclusion request submitted under paragraph (c) 
of this supplement.
    (5) Revocation of grants of relief. The Secretary of Commerce will 
revoke any grant of relief under paragraph (j)(3) of this supplement if 
the Secretary determines at any time after such grant that the criteria 
for relief to which the party must attest under paragraphs (j)(1)(i) 
through (iii) of this supplement have not been met and may, if the 
Secretary deems it appropriate, notify the Attorney General of the 
facts that led to such revocation.

Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2020-22608 Filed 10-8-20; 11:15 am]
BILLING CODE 3510-33-P