Steel Trade Liberalization Program Implementation Act
PL 101-221 (H.R.3275), enacted 12/12/1989

103 STAT. 1886 
PUBLIC LAW 101-221—DEC. 12, 1989 
Public Law 101-221 
101st Congress 
An Act 
Dec. 12, 1989 
[H.R. 3275] 
To implement the steel trade liberalization program. 
Be it enacted by the Senate and House of Representatives of the 
Steel Trade 
United States of America in Congress assembled. 
Liberalization 
Program 
SECTION 1. SHORT TITLE. 
mp emen a ion 
,j,j^jg ^^^ ^ 
l^^ cited as the "Steel Trade Liberalization Program 
Business and 
Implementation Act". 
industry. 
Imports 
SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSES; SENSE OF CONGRESS 
19 use 2101 
REGARDING 
THE 
STEEL 
TRADE 
LIBERALIZATION 
note. 
PROGRAM. 
(a) FINDINGS AND PURPOSES.—Section 802 of the Steel Import 
Stabilization Act (19 U.S.C. 2253 note) is amended to read as follows: 
"SEC. 802. FINDINGS AND PURPOSES. 
"(a) The Congress finds that— 
"(1) since 1984, the United States steel industry has made 
significant progress toward adjustment, through modernization 
of production facilities, elimination of excess capacity, reduction 
of production costs, and improvement of productivity; 
"(2) an extension of import relief, through transitional bi-
lateral arrangements, for a period of two and one-half years will 
facilitate the steel industry's continued modernization and 
worker retraining; 
"(3) liberalization of market access during the period of 
transitional bilateral arrangements, with preferential treat-
ment for countries who support fair and open trade, will help 
ensure an orderly return to an open market; 
"(4) the negotiation of an international consensus through the 
Uruguay Round of trade negotiations and through bilateral 
g^reements to address subsidies and tariff and nontariff bar-
riers will strengthen the international trading system and 
conditions of global steel trade; and 
"(5) the termination of transitional bilateral arrangements by 
March 31, 1992, and the full and forceful application of the 
United States unfair trade laws, will protect the United States 
national interest in preserving conditions of fair and open trade 
in the United States market. 
"(b) The purposes of this title are— 
"(1) to endorse the principles and goals of the steel trade 
liberalization program as announced by the President on 
July 25, 1989, and provide for its implementation; 
"(2) to grant specific enforcement powers to the President to 
carry out the terms and conditions of bilateral arrangements 
entered into for purposes of implementing that program; and 
"(3) to make the continuation of those powers subject to the 
condition that the steel industry continue to modernize its plant 
and equipment and provide for appropriate worker retraining.". 
PUBLIC LAW 101-221—DEC. 12, 1989 
103 STAT. 1887 
(b) SENSE OF CONGRESS.—Section 803 of the Steel Import Stabiliza-
tion Act is amended to read as follows: 
19 USC 2253 
note. 
"SEC. 803. SENSE OF CONGRESS REGARDING THE STEEL TRADE LIBERAL-
IZATION PROGRAM. 
"(a) The Congress supports the full and effective implementation 
of the steel trade liberalization program. 
"(b) It is the sense of the Congress that the steel trade liberaliza-
tion program should be implemented in a manner which provides 
for liberalized market access for steel products during the period in 
which bilateral arrangements remain authorized in order to prepare 
for the eventual termination of such arrangements in 1992 and 
reliance thereafter on market forces and the full enforcement of 
United States trade laws. In particular, liberalized market access 
should be provided to those foreign countries that work with the 
United States to achieve the goals referred to in subsection (c). 
"(c) It is further the sense of the Congress that the United States 
Trade 
Representative 
should 
promptly 
conduct 
negotiations, 
through the Uruguay Round of negotiations under the General 
Agreement on Tariffs and Trade and through complementary bi-
lateral arrangements, to seek an international consensus regarding 
steel trade that provides for— 
"(1) strong disciplines over trade-distorting government sub-
sidies; 
"(2) the lowering of trade barriers so as to ensure market 
access; and 
"(3) enforcement measures to deal with violations of consen-
sus obligations. 
"(d) The President shall provide to the Congress an annual assess- President of U.S. 
ment of the progress of the negotiations referred to in subsection (c). Reports. 
The President may include the assessment in the annual report 
required under section 163(a) of the Trade Act of 1974 (19 U.S.C. 
2213(a)) regarding the trade agreements program.". 
SEC. 3. EXTENSION OF ACT. 
(a) EXTENSION UNTIL APRIL 1, 1992.—Section 806(a) of the Steel 
Import Stabilization Act is amended— 
19 USC 2253 
(1) by striking out "the fifth anniversary of the effective date 
"°** 
',; 
of this title" in paragraph (1) and inserting "March 31, 1992"; 
and 
(2) by striking out "or fourth" in paragraph (2) and inserting 
"fourth, fifth, sixth, or seventh". 
(b) SPECIAL PROVISION.—If the Steel Trade Liberalization Program 
19 USC 2253 
Implementation Act is not enacted on or before October 1, 1989, "°^-
then section 806(a)(2) of the Steel Import Stabilization Act (as 
amended by subsection (a)) shall be applied by treating the reference 
therein to the close of the fifth anniversary of the effective date of 
the Steel Import Stabilization Act as a reference to the close of the 
30th day after the date of the enactment of the Steel Trade Liberal-
ization Program Implementation Act. 
SEC. 4. ENFORCEMENT AUTHORITY. 
(a) INTERIM AUTHORITY.—Section 805(a) of the Steel Import Sta-
bilization Act is amended by adding at the end thereof the following 19 USC 2253 
new sentence: "The President is further authorized to carry out, ^°*^-
between October 1, 1989, and the date of the concluding of any 
103 STAT. 1888 
PUBLIC LAW 101-221—DEC. 12, 1989 
19 use 2253 
note. 
Federal 
Register, 
publication. 
bilateral arrangement, such actions as may be necessary or appro-
priate to ensure an orderly transition to that arrangement.". 
0?) SHORT SUPPLY SITUATIONS.—Section 805(b) of the Steel Import 
Stabilization Act is amended to read as follows: 
"(b)(1) If-
"(A) a bilateral arrangement includes a provision relating to 
short supply situations; and 
"(B) the Secretary of Commerce (hereinafter in this subsec-
tion referred to as the 'Secretary') determines, in accordance 
with this subsection, that a short supply situation exists in the 
United States with respect to a steel product that is subject to a 
quantitative limitation under such arrangement; 
the Secretary shall authorize the importation of additional quan-
tities of that product without regard to any aggregate quantitative 
import limitation in effect under such arrangement. 
"(2) In determining under this subsection whether a short supply 
situation exists in the United States with respect to a steel product, 
the Secretary shall take into account all relevant factors, in-
cluding— 
"(A) (to the extent information is available) the recent levels 
of capacity utilization for domestic facilities producing the 
product; 
"(B) the quantity of the steel product requested in a short 
supply petition and the ability of domestic producers to supply 
the product in such quantity; 
"(C) the willingness of a domestic producer to supply the steel 
product at a price which is not an aberration from prevailing 
domestic market prices; 
"(D) reasonable specifications requested by the purchaser or 
any end user; and 
"(E) delivery times to the purchaser and any end user of the 
steel product. 
"(3XA) A petition requesting a determination under this subsec-
tion may be filed with the Secretary. The petition must be in such 
form and contain such relevant information as the Secretary 
requires. 
"(B) If the Secretary considers that a petition filed under subpara-
graph (A) is adequate, the Secretary shall promptly cause to be 
published in the Federal Register a notice that a determination 
under this subsection with respect to the steel product concerned is 
under consideration. 
"(C) The Secretary shall provide opportunity for comment by 
interested persons regarding the issues raised in a petition. 
"(D)(i) The petitioner shall certify that the factual information 
contained in the petition and any additional submission is accurate 
and complete to the best of the petitioner's knowledge. 
"(ii) An interested person shall certify that the factual informa-
tion submitted by that person to the Secretary is accurate and 
complete to the best of the person's knowledge. 
"(4)(A) If an adequate petition is filed under paragraph (3XA), the 
Secretary shall determine, not later than the day specified in 
subparagraph (B)— 
"(i) whether a short supply situation exists in the United 
States with respect to the steel product; and 
"(ii) if the determination under clause (i) is affirmative, the 
quantity of the steel product that the Secretary will authorize 
for importation. 
PUBLIC LAW 101-221—DEC. 12, 1989 
103 STAT. 1889 
Federal 
Register, 
publication. 
Regulations. 
"(B) The Secretary must make a determination with respect to a 
petition not later than— 
"(i) the 15th day after the day on which the petition is filed 
if— 
"(I) the raw steel making capacity utilization in the 
United States equals or exceeds 90 percent, 
"(II) the importation of additional quantities of the steel 
product was authorized by the Secretary during each of the 
2 immediately preceding years, or 
"(III) the Secretary finds, on the basis of available 
information (and whether or not in the context of a deter-
mination under this subsection), that the steel product is 
not produced in the United States; or 
"(ii) the 30th day after the day on which the petition was filed 
if neither subclause (I), (II), or (III) of clause (i) applies. 
"(C) In making a determination with respect to which subpara-
graph (B)(i) applies, the Secretary shall apply a rebuttable presump-
tion that the short supply situation alleged in the petition exists. 
"(D) The Secretary shall cause to be published in the Federal 
Register notice of each determination made under this subsection 
setting forth the reasons for the determination. 
"(5) If under this subsection the Secretary authorizes the importa-
tion of a specified quantity of a steel product, the Secretary shall 
notify a representative of the appropriate foreign government and 
issue to the petitioner the necessary documentation to permit the 
importation of that quantity. 
"(6) The Secretary shall prescribe regulations to carry out this 
subsection. The interim text of such regulations shall be issued on or 
before the 30th day after the date of the enactment of the Steel 
Trade Liberalization Program Implementation Act. The regulations 
shall provide for transparency and fairness in the process of making 
short supply determinations, and shall be consistent with the Presi-
dent's announcement on July 25, 1989, establishing the steel trade 
liberalization program.", 
(c) CONFORMING AMENDMENTS.—Section 805 is further amended— 
(1) by amending subsection (c) by striking out "may provide" 
and inserting ", in consultation with the Secretary of Com-
merce, shall provide"; and 
(2) by striking out "President's Steel Policy," in subsection 
(d)(3) and inserting "steel trade liberalization program". 
SEC. 5. DEFINITIONS. 
Section 804 of the Steel Import Stabilization Act is amended— 
(1) by inserting "or the steel trade liberalization program" 
before the period at the end of paragraph (1); and 
(2) by adding at the end thereof the following: 
"(4) The term 'steel trade liberalization program' means the 
program, announced by the President on July 25,1989, designed 
to achieve an orderly transition to open markets, the continued 
modernization and adjustment of the steel industry, and the 
negotiation of an international consensus to restore fair and 
open steel trade.". 
SEC. 6. DOMESTIC INDUSTRY EFFORTS TO IMPROVE QUALITY AND SERV-
ICE AND TO PROVIDE WORKER TRAINING. 
(a) IN GENERAL.—Section 806(b) of the Steel Import Stabilization 
Act is amended— 
19 USC 2253 
note. 
19 USC 2253 
note. 
103 STAT. 1890 
PUBLIC LAW 101-221—DEC. 12, 1989 
(1) by amending paragraph (2)(A) to read as follows: 
"(A) The term 'major company' means an enterprise that 
produces iron and steel and whose raw steel production in the 
United States during 1988 exceeded 2,000,000 net tons."; and 
(2) by adding at the end of paragraph (3) the following: "For 
purposes of this paragraph, the United States International 
Trade Commission shall seek to— 
"(A) obtain information from purchasers of domestic steel 
products, as well as from domestic producers of steel prod-
ucts, regarding recent improvements in domestic quality 
and service, including those that result from industry mod-
ernization; and 
"(B) obtain information on— 
"(i) the general nature of the worker retraining ef-
forts undertaken by the steel industry, and 
"(ii) with respect to the moneys referred to in para-
graph (1)(B), the amounts used to retrain displaced 
former employees as compared with the amounts used 
for on-the-job retraining within the industry.". 
19 use 2253 
(b) SPECIAL RULE.—The amendment made by subsection (a)(1) 
^ 
shall not affect the definition of "qualified corporation" contained in 
section 212(g)(1)(A) of the Tax Reform Act of 1986. 
SEC. 
7
. 
ETHYL 
ALCOHOL 
AND 
MIXTURES 
THEREOF 
FOR 
FUEL 
USE. 
(a) DETERMINATION OF INDIGENOUS PRODUCTS.—Section 423(c) of 
the Tax Reform Act of 1986 (19 U.S.C. 2703 note) is amended— 
(1) by redesignating paragraphs (3), (4), and (5) as paragraphs 
(4), (5), and (6), respectively; and 
(2) by striking out paragraph (2) and inserting the following: 
"(2) Ethyl alcohol or a mixture thereof that is produced by a 
process of full fermentation in an insular possession or bene-
ficiary country shall be treated as being an indigenous product 
of that possession or country. 
"(3)(A) Ethyl alcohol and mixtures thereof that are only 
dehydrated within an insular possession or beneficiary country 
(hereinafter in this paragraph referred to as 'dehydrated alco-
hol and mixtures') shall be treated as being indigenous products 
of that possession or country only if the alcohol or mixture, 
when entered, meets the applicable local feedstock requirement. 
"(B) The local feedstock requirement with respect to any 
calendar year is— 
"(i) 0 percent with respect to the base quantity of dehy-
drated alcohol and mixtures that is entered; 
"(ii) 30 percent with respect to the 35,000,000 gallons of 
dehydrated alcohol and mixtures next entered after the 
base quantity; and 
"(iii) 50 percent with respect to all dehydrated alcohol 
and mixtures entered after the amount specified in clause 
(ii) is entered. 
"(C) For purposes of this paragraph: 
"(i) The term 'base quantity' means, with respect to 
dehydrated alcohol and mixtures entered during any cal-
endar year, the greater o
f
— 
"(I) 60,000,000 gallons; or 
"(II) an amount (expressed in gallons) equal to 7 
percent of the United States domestic market for ethyl 
alcohol, as determined by the United States Inter-
PUBLIC LAW 101-221—DEC. 12, 1989 
103 STAT. 1891 
national Trade Commission, during the 12-month 
period ending on the preceding September 30; 
that is first entered during that calendar year. 
"(ii) The term 'local feedstock' means hydrous ethyl alco-
hol which is wholly produced or manufactured in any 
insular possession or beneficiary country. 
"(iii) The term 'local feedstock requirement' means the 
minimum percent, by volume, of local feedstock that must 
be included in dehydrated alcohol and mixtures.", 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 19USC2703 
shall apply with respect to calendar years 1990 and 1991. 
^°^-
SEC. 8. CONSISTENCY OF THE SUPERFUND PETROLEUM TAX WITH THE 
GENERAL AGREEMENT ON TARIFFS AND TRADE. 
(a) UNIFORM RATE.—Section 4611(c)(2)(A) of the Internal Revenue 
Code of 1986 (26 U.S.C. 4611(c)(2)(A)) is amended to read as follows: 
"(A) the Hazardous Substance Superfund financing rate 
is 9.7 cents a barrel, and". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 26 USC 4611 
shall take effect on the date of enactment of this Act. 
^°^-
SEC. 9. EFFECTIVE DATE. 
19 USC 2253 
The amendments made by this Act (other than the amendments 
"° ® 
made by sections 7 and 8) shall take effect on October 1, 1989. 
Approved December 12, 1989. 
LEGISLATIVE HISTORY—H.R. 3275: 
HOUSE REPORTS: No. 101-263 (Comm. on Ways and Means). 
SENATE REPORTS: No. 101-206 (Comm. on Finance). 
CONGRESSIONAL RECORD, Vol. 135 (1989): 
Oct. 2, considered and passed House. 
Nov. 21, considered and passed Senate, amended. House concurred in Senate 
amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 25 (1989): 
Dec. 12, Presidential statement.