Presidential Document2021-28516

Adjusting Imports of Steel Into the United States

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Published
January 3, 2022
Signed
December 27, 2021

Issuing agencies

Executive Office of the President

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<title>Federal Register, Volume 87 Issue 1 (Monday, January 3, 2022)</title>
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[Federal Register Volume 87, Number 1 (Monday, January 3, 2022)]
[Presidential Documents]
[Pages 11-26]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-28516]




                        Presidential Documents 



Federal Register / Vol. 87, No. 1 / Monday, January 3, 2022 / 
Presidential Documents

[[Page 11]]


                Proclamation 10328 of December 27, 2021

                
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 the President a report on 
                the Secretary's 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 the 
                President 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.

                2. In Proclamation 9705 of March 8, 2018 (Adjusting 
                Imports of Steel Into the United States), the President 
                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 those 
                steel articles by imposing a 25 percent ad valorem 
                tariff on such articles imported from all countries 
                except Canada and Mexico. The proclamation further 
                stated that any country with which we have 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, and 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 the President determines that 
                imports from that country no longer threaten to impair 
                the national security, the President may remove or 
                modify the restriction on steel articles imports from 
                that country and, if necessary, adjust the tariff as it 
                applies to other countries, as the national security 
                interests of the United States require.

                3. In Proclamation 9711, the President noted the 
                continuing discussions with the European Union (EU) on 
                behalf of its member countries on satisfactory 
                alternative means to address the threatened impairment 
                to the national security by imports of steel articles 
                from these countries. Recognizing that the member 
                countries of the EU have an important security 
                relationship with the United States, the President 
                determined that the necessary and appropriate means to 
                address the threat to the national security posed by 
                imports of steel articles from these countries was to 
                continue the ongoing discussions and to exempt steel 
                articles imports from these countries from the tariff 
                proclaimed in Proclamation 9705 until May 1, 2018. In 
                Proclamation 9740 of April 30, 2018 (Adjusting Imports 
                of Steel Into the United States), the President noted 
                that, unless the President determines by further 
                proclamation that the United States has reached a 
                satisfactory alternative means to remove the threatened 
                impairment to the national security by imports of steel 
                articles from the member countries of the EU, the 
                tariff proclaimed in Proclamation 9705 shall be 
                effective June 1, 2018, for these countries.

                4. The United States has successfully concluded 
                discussions with the EU on behalf of its member 
                countries on satisfactory alternative means to address 
                the threatened impairment of the national security 
                posed by steel articles

[[Page 12]]

                imports from the EU. The United States and the EU have 
                agreed to expand coordination involving trade remedies 
                and customs matters, monitor bilateral steel and 
                aluminum trade, cooperate on addressing non-market 
                excess capacity, and annually review their arrangement 
                for alternative means and their ongoing cooperation. In 
                addition, the United States and the EU will seek to 
                conclude, by October 31, 2023, negotiations on global 
                steel and aluminum arrangements to restore market-
                oriented conditions and support the reduction of carbon 
                intensity of steel and aluminum across modes of 
                production.

                5. The United States will implement a number of 
                actions, including a tariff-rate quota that restricts 
                the quantity of steel articles imported into the United 
                States from the EU without the application of the 
                tariff proclaimed in Proclamation 9705. Under the 
                arrangement, steel articles that are melted and poured 
                in the EU are eligible for in-quota treatment. In my 
                judgment, these measures will provide an effective, 
                long-term alternative means to address any contribution 
                by EU steel articles imports to the threatened 
                impairment of the national security by restraining 
                steel articles imports to the United States from the 
                EU, limiting transshipment, discouraging excess steel 
                capacity and production, and strengthening the United 
                States-EU partnership in a fashion that will better 
                enable future arrangements. In light of this agreement, 
                I have determined that specified volumes of eligible 
                steel articles imports from the EU will no longer 
                threaten to impair the national security and have 
                decided to exclude such imports from the EU up to a 
                designated quota from the tariff proclaimed in 
                Proclamation 9705 through December 31, 2023. The United 
                States will monitor the implementation and 
                effectiveness of the tariff-rate quota and other 
                measures agreed upon with the EU in addressing our 
                national security needs, and I may revisit this 
                determination, as appropriate.

                6. The alternative means, including the tariff-rate 
                quota, advance the recommendations contained in the 
                Secretary's January 2018 report. The agreed-upon 
                aggregate tariff-rate quota volume specified in the 
                agreement between the United States and the EU, 
                totaling 3.3 million metric tons, is consistent with 
                the objective of reaching and maintaining a sufficient 
                capacity utilization rate in the domestic steel 
                industry.

                7. The United States also agreed to renew for 2 
                calendar years all exclusions that were granted and 
                utilized to import steel products tariff-free from the 
                EU in Fiscal Year 2021. These exclusions were granted 
                by the Department of Commerce due to a lack of domestic 
                availability of the specified products in the United 
                States.

                8. In light of my determination to adjust the tariff 
                proclaimed in Proclamation 9705 as applied to eligible 
                steel articles imported from the EU, I have considered 
                whether it is necessary and appropriate in light of our 
                national security interests to make any corresponding 
                adjustments to such tariff as it applies to other 
                countries. I have determined that it is necessary and 
                appropriate, at this time, to maintain the current 
                tariff level as it applies to other countries.

                9. 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.

                10. 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, JOSEPH R. BIDEN JR., President of 
                the United States of America, by the authority vested 
                in me by the Constitution and the laws of the United 
                States of America, including section 232 of the Trade 
                Expansion Act of 1962, as amended, section 301 of title 
                3, United States

[[Page 13]]

                Code, and section 604 of the Trade Act of 1974, as 
                amended, do hereby proclaim as follows:

                    (1) To establish a tariff-rate quota on imports of 
                steel articles from member countries of the EU as set 
                forth in paragraph 5 of this proclamation, U.S. Note 16 
                of subchapter III of chapter 99 of the HTSUS is amended 
                as provided for in the Annex to this proclamation. 
                Imports of steel articles from member countries of the 
                EU in excess of the tariff-rate quota quantities shall 
                remain subject to the duties imposed by clause 2 of 
                Proclamation 9705, as amended. The Secretary, in 
                consultation with the United States Trade 
                Representative and the Secretary of Homeland Security, 
                shall recommend to the President, as warranted, updates 
                to the in-quota volumes contained in the Annex to this 
                proclamation.
                    (2) Clause 2 of Proclamation 9705, as amended, is 
                revised to read as follows:
                    ``(2)(a) In order to establish certain 
                modifications to the duty rate on imports of steel 
                articles, subchapter III of chapter 99 of the HTSUS is 
                modified as provided in the Annex to this proclamation 
                and any subsequent proclamations regarding such steel 
                articles.
                    (b) Except as otherwise provided in this 
                proclamation, or in notices published pursuant to 
                clause 3 of this proclamation, all steel articles 
                imports covered by heading 9903.80.01, in subchapter 
                III of chapter 99 of the HTSUS, shall be subject to an 
                additional 25 percent ad valorem rate of duty with 
                respect to goods entered for consumption, or withdrawn 
                from warehouse for consumption, as follows: (i) on or 
                after 12:01 a.m. eastern daylight time on March 23, 
                2018, from all countries except Argentina, Australia, 
                Brazil, Canada, Mexico, South Korea, and the member 
                countries of the European Union; (ii) on or after 12:01 
                a.m. eastern daylight time on June 1, 2018, from all 
                countries except Argentina, Australia, Brazil, and 
                South Korea; (iii) on or after 12:01 a.m. eastern 
                daylight time on August 13, 2018, from all countries 
                except Argentina, Australia, Brazil, South Korea, and 
                Turkey; (iv) on or after 12:01 a.m. eastern daylight 
                time on May 20, 2019, from all countries except 
                Argentina, Australia, Brazil, South Korea, and Turkey; 
                (v) on or after 12:01 a.m. eastern daylight time on May 
                21, 2019, from all countries except Argentina, 
                Australia, Brazil, Canada, Mexico, and South Korea; and 
                (vi) on or after 12:01 a.m. eastern standard time on 
                January 1, 2022, from all countries except Argentina, 
                Australia, Brazil, Canada, Mexico, and South Korea, and 
                except the member countries of the European Union 
                through 11:59 p.m. eastern standard time on December 
                31, 2023, for steel articles covered by headings 
                9903.80.65 through 9903.81.19, inclusive. Further, 
                except as otherwise provided in notices published 
                pursuant to clause 3 of this proclamation, all steel 
                articles imports from Turkey covered by heading 
                9903.80.02, in subchapter III of chapter 99 of the 
                HTSUS, shall be subject to a 50 percent ad valorem rate 
                of duty 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 13, 
                2018, and prior to 12:01 a.m. eastern daylight time on 
                May 21, 2019. All steel articles imports covered by 
                heading 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 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''.
                    (3) The first two sentences of clause 1 of 
                Proclamation 9980 of January 24, 2020 (Adjusting 
                Imports of Derivative Aluminum Articles and Derivative 
                Steel Articles Into the United States), are revised to 
                read as follows:
                    ``In order to establish increases in the duty rate 
                on imports of certain derivative articles, subchapter 
                III of chapter 99 of the HTSUS is modified

[[Page 14]]

                as provided in Annex I and Annex II to this 
                proclamation. Except as otherwise provided in this 
                proclamation, all imports of derivative aluminum 
                articles specified in Annex I to this proclamation 
                shall be subject to an additional 10 percent ad valorem 
                rate of duty, and all imports of derivative steel 
                articles specified in Annex II to this proclamation 
                shall be subject to an additional 25 percent ad valorem 
                rate of duty, with respect to goods entered for 
                consumption, or withdrawn from warehouse for 
                consumption, as follows: (i) on or after 12:01 a.m. 
                eastern standard time on February 8, 2020, these rates 
                of duty, which are in addition to any other duties, 
                fees, exactions, and charges applicable to such 
                imported derivative aluminum articles or steel 
                articles, shall apply to imports of derivative aluminum 
                articles described in Annex I to this proclamation from 
                all countries except Argentina, the Commonwealth of 
                Australia (Australia), Canada, and the United Mexican 
                States (Mexico) and to imports of derivative steel 
                articles described in Annex II to this proclamation 
                from all countries except Argentina, Australia, Brazil, 
                Canada, Mexico, and South Korea and; (ii) on or after 
                12:01 a.m. eastern standard time on January 1, 2022, 
                these rates of duty, which are in addition to any other 
                duties, fees, exactions, and charges applicable to such 
                imported derivative aluminum articles or steel 
                articles, shall apply to imports of derivative aluminum 
                articles described in Annex I to this proclamation from 
                all countries except Argentina, Australia, Canada, the 
                member countries of the European Union and Mexico and 
                to imports of derivative steel articles described in 
                Annex II to this proclamation from all countries except 
                Argentina, Australia, Brazil, Canada, the member 
                countries of the European Union, Mexico, and South 
                Korea.''
                    (4) Steel eligible for treatment under clause 1 of 
                this proclamation must be melted and poured in a member 
                country of the EU in order to receive such treatment. 
                The Secretary, in consultation with the Secretary of 
                Homeland Security and the United States Trade 
                Representative, is authorized to take such actions as 
                are necessary to ensure compliance with this 
                requirement. Failure to comply could result in 
                applicable remedies such as the collection of the 
                tariff set forth in clause 2 of Proclamation 9705, or 
                penalties under United States law.
                    (5) Steel articles from a member country of the EU 
                imported under an exclusion granted pursuant to clause 
                3 of Proclamation 9705, as amended, shall not count 
                against the in-quota volume of the tariff-rate quota 
                established in clause 1 of this proclamation.
                    (6) The Secretary is directed to renew all utilized 
                exclusions granted pursuant to clause 3 of Proclamation 
                9705, as amended, in Fiscal Year 2021 (October 1, 2020, 
                through September 30, 2021), for the import of steel 
                articles from one or more member countries of the EU 
                for a period of 2 years from the date of this 
                proclamation. The renewed exclusions shall be for an 
                annual volume equal to that volume imported from a 
                member country of the EU pursuant to the exclusion in 
                Fiscal Year 2021. The Secretary shall communicate to 
                U.S. Customs and Border Protection of the Department of 
                Homeland Security the exclusions and the volumes of 
                steel articles from member countries of the EU that are 
                allowed under this provision. The Secretary shall, by 
                publication on the Internet, or by other means, inform 
                importers of the availability and volume of exclusions 
                renewed by this provision. This provision does not 
                alter or modify in any way the ability of importers to 
                seek additional exclusions in accordance with clause 3 
                of Proclamation 9705, as amended, and as implemented by 
                the Department of Commerce, for the import of steel 
                articles from a member country of the EU.
                    (7) The Secretary shall, within 45 days of the 
                issuance of this proclamation, publish in the Federal 
                Register a notice seeking comments from interested 
                parties on the exclusion process as set forth in 
                Supplement No. 1 to part 705 of title 15 of the Code of 
                Federal Regulations. Issues to be included for comment 
                should include the responsiveness of the exclusion 
                process to market demand and enhanced consultation with 
                United States firms and

[[Page 15]]

                labor organizations. Within 60 days of the close of the 
                comment period of the notice, the Secretary shall issue 
                a proposed regulation revising the exclusion process as 
                deemed appropriate following consideration of such 
                comments. In carrying out the review of the exclusion 
                process, the Secretary shall review whether the 
                criteria for review of exclusion requests in clause 3 
                of Proclamation 9705 that the ``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'' and clause 3 of Proclamation 9704 that 
                the ``aluminum 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'' continues 
                to be the appropriate criterion for making 
                determinations. The Secretary is authorized to make 
                such changes to the criteria as the Secretary deems 
                necessary and shall issue a final rule implementing 
                such changes within 60 days of the comment period on 
                the proposed regulation.
                    (8) The Secretary, in coordination with the 
                Secretary of State and the heads of other executive 
                departments and agencies as necessary, shall establish 
                a process to assist United States steel and aluminum 
                consumers in identifying suppliers in those trading 
                partners with which the United States has negotiated an 
                arrangement under section 232 of the Trade Expansion 
                Act of 1962, as amended, that can provide the relevant 
                product.
                    (9) On a regular basis, the Department of Commerce 
                shall publish on its website the volume of steel 
                articles imported under exclusions issued pursuant to 
                clause 3 of Proclamation 9705, as amended.
                    (10) The modifications to the HTSUS made by clause 
                1 of 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 standard time on January 1, 2022, and shall 
                continue in effect, unless such actions are expressly 
                reduced, modified, or terminated.
                    (11) Any imports of steel articles from the member 
                countries of the EU that were admitted into a United 
                States foreign trade zone under ``privileged foreign 
                status'' as defined in 19 CFR 146.41, prior to 12:01 
                a.m. eastern standard time on January 1, 2022, shall be 
                subject upon entry for consumption made on or after 
                12:01 a.m. eastern standard time on January 1, 2022, to 
                the provisions of the tariff-rate quota in effect at 
                the time of the entry for consumption.
                    (12) 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.

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                IN WITNESS WHEREOF, I have hereunto set my hand this 
                twenty-seventh day of December, in the year of our Lord 
                two thousand twenty-one, and of the Independence of the 
                United States of America the two hundred and forty-
                sixth.
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[FR Doc. 2021-28516
Filed 12-30-21; 8:45 am]
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Indexed from Federal Register on January 3, 2022.

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