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107th Congress, 2d Session - - - - - - - - - - - House Document 107-185
TO FACILITATE POSITIVE ADJUSTMENT TO COMPETITION FROM IMPORTS OF
CERTAIN STEEL PRODUCTS
__________
MESSAGE
from
THE PRESIDENT OF THE UNITED STATES
transmitting
DOCUMENTS DESCRIBING SAFEGUARD ACTION PROCLAIMED ON IMPORTS OF CERTAIN
STEEL PRODUCTS, PURSUANT TO SECTION 203(a)(1) OF THE TRADE ACT OF 1974
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>
March 6, 2002.--Message and accompanying papers referred to the
Committee on Ways and Means and ordered to be printed
__________
U.S. GOVERNMENT PRINTING OFFICE
99-011 WASHINGTON : 2002
To the Congress of the United States:
In accordance with section 203(b) of the Trade Act of 1974,
as amended (the ``Act''), I hereby transmit documents to the
Congress that describe the safeguard action that I have
proclaimed on imports of certain steel products, pursuant to
the authority vested in me by section 203(a)(1) of the Act and
as President of the United States, and the reasons for taking
that action.
George W. Bush.
The White House, March 5, 2002.
To Facilitate Positive Adjustment to Competition From Imports of
Certain Steel Products
----------
By the President of the United States of America
a proclamation
1. On December 19, 2001, the United States International
Trade Commission (ITC) transmitted to the President a 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 certain steel products.
2. The ITC reached affirmative determinations under section
202(b) of the Trade Act that the following products are being
imported into the United States in such increased quantities as
to be a substantial cause of serious injury, or threat of
serious injury, to the domestic industries producing like or
directly competitive articles: (a) certain carbon flatrolled
steel, including carbon and alloy steel slabs (``slabs'');
plate (including cut-to-length plate and clad plate)
(``plate''); hot-rolled steel (including plate in coils)
(``hot-rolled steel''); cold-rolled steel (other than grain-
oriented electrical steel) (``cold-rolled steel''); and
corrosion-resistant and other coated steel (``coated steel'')
(collectively, ``certain flat steel''); (b) carbon and alloy
hot-rolled bar and light shapes (``hot-rolled bar''); (c)
carbon and alloy cold-finished bar (``cold-finished bar''); (d)
carbon and alloy rebar (``rebar''); (e) carbon and alloy welded
tubular products (other than oil country tubular goods)
(``certain tubular products''); (f) carbon and alloy flanges,
fittings, and tool joints (``carbon and alloy fittings''); (g)
stainless steel bar and light shapes (``stainless steel bar'');
and (h) stainless steel rod. The ITC commissioners were equally
divided with respect to the determination required under
section 202(b) regarding whether (i) carbon and alloy tin mill
products (``tin mill products'') and (j) stainless steel wire.
3. The ITC provided detailed definitions of the products
included in categories (a) through (j) of paragraph 2, and
their corresponding subheadings, under the Harmonized Tariff
Schedule of the United States (HTS) in Appendix A to its
determination, set out at 66 Fed. Reg. 67304, 67308-67311
(December 28, 2001). By February 4, 2002, the ITC provided
additional information in response to a request by the United
States Trade Representative (USTR) under section 203(a)(5) of
the Trade Act (19 U.S. 2253(a)(5)) (the ``supplemental
report'').
4. Section 330(d)(1) of the Tariff Act of 1930, as amended
(19 U.S.C. 1330(d)(1)), provides that, when the ITC is required
to determine under section 202(b) of the Trade Act whether
increased imports of an article are a substantial cause of
serious injury, or the threat thereof, and the commissioners
voting are equally divided with respect to such determination,
then the determination agreed upon by either group of
commissioners may be considered by the President as the
determination of the ITC. Having considered the determinations
of the commissioners with regard to tin mill products and
stainless steel wire, I have decided to consider the
determinations of the groups of commissioners voting in the
affirmative with regard to each of these products to be the
determination of the ITC.
5. Pursuant to section 311(a) of the North American Free
Trade Agreement Implementation Act (the ``NAFTA Implementation
Act'') (19 U.S.C. 3371(a)), the ITC made findings as to whether
imports from Canada and Mexico, considered individually,
account for a substantial share of total imports and contribute
importantly to the serious injury, or threat thereof, caused by
imports. The ITC made negative findings with respect to imports
from Canada of certain flat steel, tin mill products, rebar,
stainless steel rod, and stainless wire; and the ITC also made
negative findings with respect to imports from Mexico of tin
mill products, hot-rolled bar, cold-finished bar, rebar,
certain tubular products, stainless steel bar, stainless steel
rod, andstainless steel wire. The ITC made affirmative findings
with respect to imports from Canada of hot-rolled bar, cold-finished
bar, carbon and alloy fittings, and stainless steel bar; and the ITC
also made affirmative findings with respect to imports from Mexico of
certain flat steel, and carbon and alloy steel fittings. The ITC
commissioners were equally divided with respect to imports from Canada
of certain tubular products.
6. The ITC commissioners voting in the affirmative under
section 202(b) of the Trade Act also transmitted to the
President their recommendations made pursuant to section 202(e)
of the Trade Act (19 U.S.C. 2252(e)) with respect to the
actions that, in their view, would address the serious injury,
or threat thereof, to the domestic industries and be most
effective in facilitating the efforts of those industries to
make a positive adjustment to import competition.
7. 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 and the ITC
supplemental report, I have determined to implement action of a
type described in section 203(a)(3) (a ``safeguard measure'')
with regard to the following steel products:
(a) certain flat steel, consisting of: slabs provided
for in the superior text to subheadings 9903.72.30
through 9903.72.48 in the Annex to this proclamation;
plate provided for in the superior text to subheadings
9903.72.50 through 9903.72.62 in the Annex to this
proclamation; hot-rolled steel provided for in the
superior text to subheadings 9903.72.65 through
9903.72.82 in the Annex to this proclamation; cold-
rolled steel provided for in the superior text to
subheadings 9903.72.85 through 9903.72.04 in the Annex
to this proclamation; and coated steel provided for in
the superior text to subheadings 9903.73.07 through
9903.73.23 in the Annex to this proclamation;
(b) hot-rolled bar provided for in the superior text
to subheadings 9903.73.42 through 9903.73.52 in the
Annex to this proclamation;
(c) cold-finished bar provided for in the superior
text to subheadings 9903.73.55 through 9903.73.62 in
the Annex to this proclamation;
(d) rebar provided for in the superior text to
subheadings 9903.73.65 through 9903.73.71 in the Annex
to this proclamation;
(e) certain tubular products provided for in the
superior text to subheadings 9903.73.74 through
9903.73.86 in the Annex to this proclamation;
(f) carbon and alloy fittings provided for in the
superior text to subheadings 9903.73.88 through
9903.73.95 in the Annex to this proclamation;
(g) stainless steel bar provided for in the superior
text to subheadings 9903.73.97 through 9903.74.06 in
the Annex to this proclamation;
(h) stainless steel rod provided for in the superior
text to subheadings 9903.74.08 through 9903.74.16 in
the Annex to this proclamation;
(i) tin mill products provided for in the superior
text to subheadings 9903.73.26 through 9903.73.39 in
the Annex to this proclamation; and
(j) stainless steel wire provided for in the superior
text to subheadings 9903.74.18 through 9903.74.24 in
the Annex to this proclamation.
The steel products listed in clauses (i) through (ix) of
subdivision (b) of U.S. Note 11 to subchapter III of chapter 99
of the HTS (``Note 11'') in the Annex of this proclamation were
excluded from the determination of the ITC described in
paragraph 2, and are excluded from these safeguard measures. I
have also determined to exclude from these safeguard measures
the steel products listed in the subsequent clauses of
subdivision (b) of Note 11 in the Annex to this proclamation.
8. Pursuant to section 312(a) of the NAFTA Implementation
Act (19 U.S.C. 3372(a)), I have determined after considering
the report and supplemental report of the ITC that imports from
eachof Canada and Mexico of certain flat steel, tin mill
products, hot-rolled bar, cold-finished bar, rebar, certain tubular
products, carbon and alloy fittings, stainless steel bar, stainless
steel rod, and stainless steel wire, considered individually, do not
account for a substantial share of total imports or do not contribute
importantly to the serious injury or threat of serious injury found by
the ITC. Accordingly, pursuant to section 312(b) of the NAFTA
Implementation act (19 U.S.C. 3372(b)), I have excluded certain flat
steel, tin mill products, hot-rolled bar, cold-finished bar, rebar,
certain tubular products, carbon and alloy fittings, stainless steel
bar, stainless steel rod, and stainless steel wire the product of
Mexico or Canada from the actions I am taking under section 203 of the
Trade Act.
9. Pursuant to section 203 of the Trade Act (19 U.S.C.
2253), the actions I have determined to take shall be safeguard
measures in the form of:
(a) a tariff rate quota on imports of slabs described
in paragraph 7, imposed for a period of 3 years plus 1
day, with annual increases in the within-quota
quantities and annual reductions in the rates of duty
applicable to goods entered in excess of those
quantities in the second and third years; and
(b) an increase in duties on imports of certain flat
steel, other than slabs (including plate, hot-rolled
steel, cold-rolled steel and coated steel), hot-rolled
bar, cold-finished bar, rebar, certain welded tubular
products, carbon and alloy fittings, stainless steel
bar, stainless steel rod, tin mill products, and
stainless steel wire, as described in paragraph 7,
imposed for a period of 3 years plus 1 day, with annual
reductions in the rates of duty in the second and third
years, as provided in the Annex to this proclamation.
10. The safeguard measures described in paragraph 9 shall
not apply to the products listed in clauses following clause
(ix) in subdivision (b) of Note 11 in the Annex to this
proclamation.
11. These safeguard measures shall apply to imports from
all countries, except for products of Canada, Israel, Jordan,
and Mexico.
12. These safeguard measures shall not apply to imports of
any product described in paragraph 7 of the developing country
that is a member of the World Trade Organization (WTO), as long
as that 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 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 7 of a developing country
WTO member undermines the effectiveness of the pertinent
safeguard measure, the safeguard measure shall be modified to
apply to such product from such country.
13. The in-quota quantity in each year under the tariff
rate quota described in paragraph 9 shall be allocated among
all countries except those countries the products of which are
excluded from such tariff rate quota pursuant to paragraphs 11
and 12.
14. Pursuant to section 203(a)(1)(A) of the Trade Act (19
U.S.C. 2253(a)(1)(A)), I have further determined that these
safeguard measures 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 pertinent domestic industry to make a
positive adjustment to import competition and to provide
greater economic and social benefits than costs, or if I
determine that the conditions under section 204(b)(1) of the
Trade Act are met, I shall reduce, modify, or terminate the
action established in this proclamation accordingly. In
addition, if I determinewithin 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 WTO Agreement on
Safeguards that is necessary to reduce, modify, or terminate a
safeguard measure, I shall proclaim the corresponding reduction,
modification, or termination of the safeguard measure within 40 days.
15. Section 604 of the Trade Act, as amended (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, GEORGE W. BUSH, President of the United
States of America, acting under the authority vested in me by
the Constitution and the laws of the United states, including
but not limited to sections 203 and 604 of the Trade Act, and
section 301 of title 3, United States Code, do proclaim that:
(1) In order to establish increases in duty and a tariff
rate quota on imports of the certain steel products described
in paragraph 7 (other than excluded products), subchapter III
of chapter 99 of the HTS is modified as provided in the Annex
to this proclamation. Any merchandise subject to a safeguard
measure that is admitted into U.S. foreign trade zones on or
after March 20, 2002, must be admitted as ``privileged foreign
status'' as defined in 19 CFR 146.41, and will be subject upon
entry to any quantitative restrictions or tariffs related to
the classification under the applicable HTS subheading.
(2) Such imports of certain steel that are the product of
Canada, Israel, Jordan, or Mexico shall be excluded from the
safeguard measures established by this proclamation, and such
imports shall not be counted toward the tariff rate quota
limits that trigger the over-quota rates of duty.
(3) Except as provided in clause (4) below, imports of
certain steel that are the product of WTO member developing
countries, as provided in subdivision (d)(i) of Note 11 in the
Annex to this proclamation, shall be excluded from the
safeguard measures established by this proclamation, and such
imports shall not be counted toward the tariff rate quota
limits that trigger the over-quota rates of duties.
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