Proposed Rule2022-02870
Request for Public Comments on the Section 232 Exclusions Process
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 10, 2022
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Abstract
The Bureau of Industry and Security (BIS) is hereby seeking public comments regarding the Section 232 exclusions process. A presidential proclamation (Adjusting Imports of Steel into the United States), published on January 3, 2022, directed the Secretary of Commerce to seek public comment on the Section 232 exclusions process, including the responsiveness of the exclusions process to market demand and enhanced consultation with U.S. firms and labor organizations.
Full Text
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<title>Federal Register, Volume 87 Issue 28 (Thursday, February 10, 2022)</title>
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[Federal Register Volume 87, Number 28 (Thursday, February 10, 2022)]
[Proposed Rules]
[Pages 7777-7779]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-02870]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Chapter VII
[Docket No. 220204-0041]
RIN 0694-XC086
Request for Public Comments on the Section 232 Exclusions Process
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Request for public comments.
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SUMMARY: The Bureau of Industry and Security (BIS) is hereby seeking
public comments regarding the Section 232 exclusions process. A
presidential proclamation (Adjusting Imports of Steel into the United
States), published on January 3, 2022, directed the Secretary of
Commerce to seek public comment on the Section 232 exclusions process,
including the responsiveness of the exclusions process to market
[[Page 7778]]
demand and enhanced consultation with U.S. firms and labor
organizations.
DATES: The due date for filing comments is March 28, 2022.
ADDRESSES: Submissions: All written comments on this request must be
filed through the Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. To submit comments via <a href="https://www.regulations.gov">https://www.regulations.gov</a>, enter the docket number BIS-2021-0042 on the home
page and click ``Search.'' The site will provide a search results page
listing all documents associated with this docket. Find a reference to
this document and click the button entitled ``Comment.'' (For further
information on using <a href="https://www.regulations.gov">https://www.regulations.gov</a>, please consult the
resources provided on the website by clicking on ``FAQ'').
FOR FURTHER INFORMATION CONTACT: Erika Maynard by telephone at 202-482-
5642 or by email at <a href="/cdn-cgi/l/email-protection#9ecdeafbfbf2acadacdefcf7edb0faf1fdb0f9f1e8"><span class="__cf_email__" data-cfemail="95c6e1f0f0f9a7a6a7d5f7fce6bbf1faf6bbf2fae3">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Background
Presidential Proclamations 10327 (87 FR 1) and 10328 (87 FR 11)
published on January 3, 2022, implemented an understanding reached
between the United States and the European Union including the
establishment of tariff rate quotas for steel and aluminum articles
imported from the European Union member countries. Proclamation 10328
also directed the Secretary of Commerce to seek public comment on the
Section 232 exclusions process, including the responsiveness of the
exclusions process to market demand and enhanced consultation with U.S.
firms and labor organizations.
Since March 19, 2018, Commerce has published five interim final
rules that established and made various revisions to the Section 232
exclusions process, as well as a Notice of Inquiry seeking public
comment on certain aspects of the Section 232 exclusions process.
On March 19, 2018, Commerce issued an interim final rule,
Requirements for Submissions Requesting Exclusions from the Remedies
Instituted in Presidential Proclamations Adjusting Imports of Steel
into the United States and Adjusting Imports of Aluminum into the
United States; and the filing of Objections to Submitted Exclusion
Requests for Steel and Aluminum (83 FR 12106), laying out procedures
for the Section 232 exclusions process.
On September 11, 2018, Commerce issued a second interim final rule,
Submissions of Exclusion Requests and Objections to Submitted Requests
for Steel and Aluminum (83 FR 46026), which revised the two supplements
added by the March 19 rule with revisions designed to further ensure a
transparent, fair, and efficient exclusions process.
On June 10, 2019, Commerce issued a third interim final rule,
Implementation of New Commerce Section 232 Exclusions Portal (84 FR
26751), that revised the two supplements added by the March 19 and
September 11 rules to grant the public the ability to submit new
exclusion requests through the Section 232 Exclusions Portal while
still allowing the opportunity for public comment on the portal.
On May 26, 2020, Commerce issued a notice of inquiry with request
for comment, Notice of Inquiry Regarding the Exclusions process for
Section 232 Steel and Aluminum Import Tariffs and Quotas (85 FR 31441),
that sought public comment on the appropriateness of the information
requested and considered in applying the exclusion criteria and the
efficiency and transparency of the process employed.
On December 14, 2020, Commerce issued a fourth interim final rule,
Implementation of New Commerce Section 232 Exclusions Portal (85 FR
81060), which established General Approved Exclusions (GAEs) to reduce
the number of exclusion requests for products consistently found not to
be produced in the United States, reducing the submission burden on
both industry and the Section 232 exclusions process. The December 14,
2020, Interim Final Rule identified 123 GAEs that had never received an
objection via the Section 232 exclusions process. GAEs are available to
all requestors for steel and aluminum products imported under 10-Digit
Harmonized Tariff Schedule of the United States classifications without
quantity limit or expiration date.
On December 9, 2021, BIS subsequently suspended 30 GAEs in its
fifth Interim Final Rule (86 FR 70003) on the Section 232 Exclusions
process because some exclusion requests subsequently received
objections under the associated HTSUS Classifications.
Exclusions Process
As of January 30, 2022, BIS has processed over 382,000 exclusion
requests and has rejected or made determinations on more than 369,000
requests. Approximately seventy percent of exclusion requests do not
receive objections. The most recent average processing time for
exclusion requests that do not receive objections is 43 days. The most
recent average processing time for exclusion requests that receive
objections is 98 days. Less than ten percent of the volume of steel
(about eight percent) and aluminum (about seven percent) articles
granted exclusions is utilized with the articles being imported into
the United States.
BIS seeks public comment on the Section 232 exclusions process. In
particular, as directed in Proclamation 10327, BIS seeks public comment
on the responsiveness of the exclusions process to market demand and
enhanced consultation with U.S. firms and labor organizations.
BIS also welcomes comment on more specific aspects of the Section
232 exclusions process, including: Potential changes to the associated
forms and required information; the request, objection, rebuttal, and
surrebuttal process; the standards of review; General Approved
Exclusions; and the overall transparency of the process. Specific
topics include:
(1) How to reduce the volume of submission errors and rejected
filings in the Section 232 Exclusions Portal;
(2) how to address the time for processing of exclusion requests,
including but not limited to reducing length or type of attachments;
(3) requiring public summaries of any confidential business
information in exclusion requests and objections, similar to the
existing requirement for rebuttal and surrebuttals;
(4) requiring public disclosure of delivery times on the Exclusion
Request and Objection Forms;
(5) requiring recent (i.e., from the last quarter or 90 days)
evidence supporting claims made in a Request or Objection;
(6) streamlining the online forms or otherwise reducing
administrative burden; and
(7) assessing the General Approved Exclusions' (GAEs) criteria and
identification of specific products.
Commenters are encouraged to identify which of these particular
issues their comments are related to. Commenters are requested to
provide information supporting their stance on that issue.
Requirements for Written Comments
The <a href="https://www.regulations.gov">https://www.regulations.gov</a> website allows users to provide
comments by filling in a ``Type Comment'' field or by attaching a
document using an ``Upload File'' field. BIS prefers that comments be
provided in an attached document. BIS prefers submissions in Microsoft
Word (.doc) or Adobe Acrobat (.pdf). If the submission is in an
application format other than Microsoft Word or Adobe Acrobat, please
indicate the name of the application in the ``Type Comment'' field.
Please do not attach separate cover letters to electronic submissions;
rather, include any information that might
[[Page 7779]]
appear in a cover letter within the comments. Similarly, to the extent
possible please include any exhibits, annexes, or other attachments in
the same file, so that the submission consists of one instead of
multiple files. Comments will be placed in the docket and open to
public inspection, except information determined to be confidential.
Comments may be viewed on <a href="https://www.regulations.gov">https://www.regulations.gov</a> by entering
docket number BIS-2021-0042 in the search field on the home page.
All filers should name their files using the name of the person or
entity submitting the comments. Communications from agencies of the
United States Government will not be made available for public
inspection.
Material submitted by members of the public that is properly marked
as business confidential information with a valid statutory basis for
confidentiality and which is accepted as such by BIS will not be
disclosed publicly. Guidance on submitting business confidential
information is as follows: Anyone submitting business confidential
information should clearly identify the business confidential portion
at the time of submission, include a statement justifying nondisclosure
and referring to the specific legal authority claimed with the
submission, and provide a non-confidential version of the submission
which will be placed in the public file on <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
For comments submitted electronically containing business confidential
information, the file name of the business confidential version should
begin with the characters ``BC''. Any page containing business
confidential information must be clearly marked ``BUSINESS
CONFIDENTIAL'' on the top of that page. The file name of the non-
confidential version should begin with the character ``P''. The non-
confidential version must be clearly marked ``PUBLIC'' on the top of
the first page. The ``BC'' and ``P'' should be followed by the name of
the person or entity submitting the comments or rebuttal comments.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2022-02870 Filed 2-9-22; 8:45 am]
BILLING CODE 3510-33-P
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