Presidential Document2022-12108

Adjusting Imports of Steel Into the United States

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
June 3, 2022
Signed
May 31, 2022

Issuing agencies

Executive Office of the President

Full Text

<html>
<head>
<title>Federal Register, Volume 87 Issue 107 (Friday, June 3, 2022)</title>
</head>
<body><pre>
[Federal Register Volume 87, Number 107 (Friday, June 3, 2022)]
[Presidential Documents]
[Pages 33591-33599]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-12108]




                        Presidential Documents 



Federal Register / Vol. 87, No. 107 / Friday, June 3, 2022 / 
Presidential Documents

[[Page 33591]]


                Proclamation 10406 of May 31, 2022

                
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 to 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. The United States has successfully concluded 
                discussions with the United Kingdom (UK) on 
                satisfactory alternative means to address the 
                threatened impairment to the national security posed by 
                imports of steel articles and derivative steel articles 
                from the UK. The United States and the UK 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 carbon intensity in these sectors, 
                annually review their arrangement and their ongoing 
                cooperation, and ensure that steel articles exports 
                from the UK to the United States under the applicable 
                tariff-rate quota for steel articles are not supported 
                by market-distorting practices.

                4. The United States will implement a number of 
                actions, including a tariff-rate quota that restricts 
                the quantity of steel articles and derivative steel 
                articles imported into the United States from the UK 
                without the application of the tariff proclaimed in 
                Proclamation 9705. Under the arrangement, steel 
                articles that are melted and poured in the UK and 
                imported from either the UK or further processed in the 
                European Union, conferring European Union country of 
                origin, and subsequently imported into the United 
                States from the European Union are eligible for in-
                quota treatment. In my judgment, these measures will 
                provide an effective, long-term alternative

[[Page 33592]]

                means to address any contribution by UK steel articles 
                and derivative steel articles imports to the threatened 
                impairment to the national security by restraining 
                steel articles and derivative steel articles imports to 
                the United States from the UK, limiting transshipment, 
                discouraging excess steel capacity and production, and 
                strengthening the United States-UK partnership. In 
                light of this agreement, I have determined that imports 
                of specified volumes of eligible steel articles and 
                derivative steel articles from the UK will no longer 
                threaten to impair the national security and have 
                decided to exclude such imports from the UK up to a 
                designated quota from the tariff proclaimed in 
                Proclamation 9705. The United States will monitor the 
                implementation and effectiveness of the tariff-rate 
                quota and other measures agreed upon with the UK in 
                addressing our national security needs, and I may 
                revisit this determination, as appropriate.

                5. I conclude that the UK presents a special case 
                because of the unique nature of the special 
                relationship that exists between the United States and 
                the UK. The United States has a deep security 
                relationship with the UK, including a shared commitment 
                to mutual support in addressing national security 
                concerns, particularly through security, defense, and 
                intelligence partnerships; a strong economic and 
                strategic partnership; and a shared commitment to 
                addressing global excess capacity in steel production.

                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 UK, 
                totaling 500,000 metric tons, is consistent with the 
                objective of reaching and maintaining a sufficient 
                capacity utilization rate in the domestic steel 
                industry and reflects the continued importance of the 
                special relationship that exists between the United 
                States and the UK.

                7. In light of my determination to adjust the tariff 
                proclaimed in Proclamation 9705 as applied to eligible 
                steel articles and derivative steel articles that are 
                melted and poured in the UK and imported from either 
                the UK or the European Union, 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.

                8. 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.

                9. 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 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 that are melted and poured in the UK and 
                imported from either the UK or the European Union as 
                set forth in paragraph 4 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 that are melted 
                and poured in the UK and from either the UK or the 
                European Union 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 Secretary of 
                Homeland Security and

[[Page 33593]]

                the United States Trade Representative, shall recommend 
                to the President, as warranted, updates to the in-quota 
                volumes contained in the Annex to this proclamation. 
                Steel articles that are melted and poured in the UK and 
                from either the UK or the European Union imported under 
                an exclusion granted pursuant to clause 3 of 
                Proclamation 9705, as amended, shall count against the 
                in-quota volume of the tariff-rate quota established in 
                clause 1 of 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; 
                (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; (vii) on or 
                after 12:01 a.m. eastern daylight time on April 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, and from Japan, for steel 
                articles covered by headings 9903.81.25 through 
                9903.81.80, inclusive; and (viii) on or after 12:01 
                a.m. eastern daylight time on June 1, 2022, from all 
                countries except Argentina, Australia, Brazil, Canada, 
                Mexico, South Korea, and Ukraine, 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, and from Japan and the UK, for 
                steel articles covered by subheadings 9903.81.25 
                through 9903.81.78 and heading 9903.81.80, and from the 
                member countries of the European Union, for steel 
                articles covered by heading 9903.81.81. 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

[[Page 33594]]

                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 
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; (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; (iii) on or after 12:01 a.m. eastern daylight time 
on April 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, Japan, Mexico, and South Korea; (iv) on or after 12:01 a.m. eastern 
daylight time on June 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, Japan, Mexico, and South Korea, and except 
from Ukraine through 11:59 p.m. eastern daylight time on June 1, 2023; and 
(v) on or after 12:01 a.m. eastern daylight time on June 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, 
Mexico, and the UK, and to imports of derivative steel articles described 
in Annex II to this proclamation from

[[Page 33595]]

all countries except Argentina, Australia, Brazil, Canada, the member 
countries of the European Union, Japan, Mexico, South Korea, and the UK, 
and except from Ukraine through 11:59 p.m. eastern daylight time on June 1, 
2023.''

                    (4) Steel articles eligible for treatment under 
                clause 1 of this proclamation must be melted and poured 
                in the UK in order to receive such treatment. Steel 
                articles melted and poured in the UK that are further 
                processed in a member country of the European Union, 
                conferring country of origin in a member country of the 
                European Union, and subsequently imported into the 
                United States is also eligible for treatment under 
                clause 1 of this proclamation as set forth in the Annex 
                to this proclamation. 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) In the case of any known UK steel producer that 
                is owned or controlled by a company registered in the 
                People's Republic of China or a Chinese entity, and 
                which exports steel to the United States under the 
                applicable tariff-rate quota, the UK agreed to provide 
                an attestation to the United States annually, based on 
                an annual strategic audit conducted by an independent 
                third party, to the effect that there is no evidence of 
                market-distorting practices by that producer in the UK 
                that would materially contribute to non-market excess 
                capacity of steel. If the attestation is not provided 
                annually as set out in the Annex to this proclamation, 
                the Secretary may temporarily deny access for any UK 
                steel producer to the in-quota rate for the applicable 
                tariff-rate quota. 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 the 
                actions regarding attestations set forth in the Annex 
                to this proclamation. If an attestation is not provided 
                as set forth in the Annex to this proclamation, it 
                could result in collection of the tariff set forth in 
                clause 2 of Proclamation 9705.
                    (6) 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 daylight time on June 1, 2022, and shall 
                continue in effect, unless such actions are expressly 
                reduced, modified, or terminated.
                    (7) Any imports of steel articles from the UK and 
                steel articles that are melted and poured in the UK 
                that are further processed in a member country of the 
                European Union, conferring country of origin in a 
                member country of the European Union, that were 
                admitted into a U.S. foreign trade zone under 
                ``privileged foreign status'' as defined in 19 CFR 
                146.41, prior to 12:01 a.m. eastern daylight time on 
                June 1, 2022, shall be subject upon entry for 
                consumption made on or after 12:01 a.m. eastern 
                daylight time on June 1, 2022, to the provisions of the 
                tariff-rate quota in effect at the time of the entry 
                for consumption.
                    (8) 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.

[[Page 33596]]

                IN WITNESS WHEREOF, I have hereunto set my hand this 
                thirty-first day of May, in the year of our Lord two 
                thousand twenty-two, and of the Independence of the 
                United States of America the two hundred and forty-
                sixth.
                <GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>
                
                    (Presidential Sig.)

Billing code 3395-F2-P



[[Page 33597]]

[GRAPHIC] [TIFF OMITTED] TD03JN22.035


[[Page 33598]]




[GRAPHIC] [TIFF OMITTED] TD03JN22.036


[[Page 33599]]




[GRAPHIC] [TIFF OMITTED] TD03JN22.037


[FR Doc. 2022-12108
Filed 6-2-22; 8:45 am]
Billing code 7020-02-C


</pre></body>
</html>
Indexed from Federal Register on June 3, 2022.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.