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NEW YORK
WASHINGTON, DC
MILWAUKEE
LOS ANGELES
HONG KONG zyxwvutsrqponmlkjih
GRUNFELD DESIDERIO I LEBOWITZ
SILVERMAN 3 KLESTADT LLP
DIRECT DIAL/EMAIL
(212) 973-7722
AKlestadt@GDLSKxom
May 2, 2018 zyxwvutsrqpon
VIA ELECTRONIC FILING
Mr. Brad Botwin
Director, Industrial Studies
Office of Technology Evaluation
Bureau of Industry and Security
U.S. Department of Commerce
Room 1093
1401 Constitution Avenue NW
Washington, DC 20230
Re: Request for Exclusions From the Remedies Instituted in Presidential
Proclamations Adjusting Imports of Steel Into the United States
On behalf of American Iron & Alloys LLC.
Product: Versa-Bar Continuous Cast Iron.
Our Reference: 13086-024001
Dear Mr. Botwin:
On behalf of our client, American Iron & Alloys LLC ("American Iron"), 1700 Airport
Road, Waukesha, WI 51388, we request the Versa-Bar products produced in Brazil be excluded
from the Remedies Instituted in Presidential Proclamations Adjusting Imports of Steel Into the
United States. Presidential Proclamation 9705 of March 8. 2018 under Section 232 of the Trade
Expansion Act of 1962 (19 U.S.C. 1862). The accompanying requests provide the detail for the
various Versa-Bar products.
Versa-Bar products are "semi-fmished bars" as this relates to them being cast through a
graphite die, continuously cast gray and ductile iron. This process forms the as-cast iron bar to
shape (round, square, rectangle, or special shape) from the iron's molten state. They are not
otherwise altered mechanically, such as rolled or drawn down to shape. They are containing by
weight 0.25 percent or more of carbon, in square, rectangular, circular or other cross-sections.
599 LEXINGTON AVENUE FL 36 NEW YORK, NY 10022-7648 I TEL. 212.557.4000 I www.GDLSK.com
GDLSK
GRUNFELD DESIDERIO LEGOWITZ
SILVERMAN S KLESTADT LLP
These cast iron products in bar shape are imported under Harmonized Tariff Schedules of the
United States (HTSUS) subheadings; 7207.20.0025 (rectangles including squares having a width
measuring less than 4 times the thickness); 7207.20.0045 (rectangles including squares having a
width measuring at least 4 times the thickness); 7207.20.0075 (circular cross sections); and
7207.20.0090 (other special shapes not specifically provided for).
Versa-Bar continuous cast iron is most commonly used in the fluid power, bearing,
patterns and machine component manufacturing industries. Versa-Bar cast iron bar products are
favored by those industries for their machinability, functionality, wear and durability. Such
features make Versa-Bar critical to domestic infrastructure projects and manufacturers of a
variety of products.
It should be noted that Versa-Bar cast iron bar products imported from Brazil have been
excluded from prior trade remedy actions. In 2002 under Section 203 of the Trade Act of 1974
(19 U.S.C. 2251, tsrqponlihgfedcaZUTSRMFC et seq.), the President took action with respect to imports of certain steel
products imposing a safeguard measure (tariff rate quota). See 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. House
Doc. 107-185 (March 6, 2002). That action was designed to relieve and prevent serious injury,
or threat of serious injury, to domestic industry. In that proceeding, the President determined
that Versa-Bar imports from Brazil did not pose a serious threat of injury to domestic industry
producing like or directly competitive products and Versa-Bar was excluded from the action.
See Annex, H. Doc 107-185 at page 17.
2
GDLSK
GRUNFELD DESIDERIO ! LEBOWITZ
SILVERMAN S KLESTAOT LLP
Likewise, in the antidumping investigation of Certain Alloy and Carbon Hot-Rolled Bars.
Rods, and Semifinished Products of Special Bar Quality (SOB) Steel From Brazil (A-351-213,
A-351-214), the International Trade Commission ("ITC") determined that sales of Versa-Bar
products did not injure, nor threaten material injury to, the U.S. domestic producers of finished
or semifinished SBQ bars and rods. tsrqponlihgfedcaZUTSRMFC See ITC, Final Determination: Certain Alloy and Carbon
Hot-Rolled Bars, Rods, and Semifinished Products of Special Bar Quality Steel From Brazil
Investigation No. 731-TA-572 (Final), 58 Fed. Reg. 38138 (July 15, 1993).1
The Versa-Bar continuous cast iron product, imported from Brazil, represents the primary
product sold by American Iron. In addition to raw materials supply, American Iron provides
custom processing, including finish machining, turning, boring, cutting to length, grinding, plate
slitting, milling and plate cutting. American Iron employs approximately 25 people in
Wisconsin. The application of a 25% tariff to Versa-Bar products would prevent American Iron
from selling at a competitive price and would seriously endanger its ability to continue as an
ongoing business. This additional tariff would likely result in the loss of employment for all 25
American Iron employees in Wisconsin.
In addition to the 25 people employed by American Iron in Wisconsin, the jobs of
Americans employed by its customers and distributors would also be jeopardized by the 25%
tariff. American Iron fulfills a critical need in the U.S. continuous cast iron market, in that many
of its customers are unable to source from the one U.S. manufacturer of continuous cast iron
(Dura-Bar). This inability results from: (1) the U.S. manufacturer's refusal to supply to their zyxwvutsrqponmlihgfed
1 Certain Special Quality Carbon and Alloy HotÂRolled Steel Bars and Rods and Semifinished Products from Brazil.
Investigation No. 731ÂTAÂ572. ITC Pub. 2662 (July 1993).
3
GRUNFELD ! DESIDERIO ! LEBOWITZ
SILVERMAN I KLESTADT LLP
business (as in the case of former long-time Dura-Bar customer, A.M. Castle); (2) the U.S.
manufacturer no longer produces the products they require (e.g., Dura-Bar does not sell certain
products that are smaller than 2 inches and does not manufacture many large shapes); and/or (3)
the U.S. manufacturer's minimum contract requirements and/or surcharges, which make certain
American companies unable to source from Dura-Bar. As a result, these U.S. manufacturing
companies rely on American Iron as their sole source of supply, making the viability of
American Iron critical to their business, their employees, and the U.S. infrastructure projects that
many of these companies serve. Attached is an Affidavit from former Dura-Bar customer, A.M.
Castle & Co., which speaks to its experience with the U.S. supplier.
We trust this information will assist in making your determination. We believe the
unique nature of the Versa-Bar continuous cast iron products, the importance of this product to
U.S. industry and infrastructure, and the loss of U.S. jobs that would occur were the tariff
imposed, justify the exclusion of Versa-Bar products imported from Brazil from the Presidential
Action.
Of course, if you have any questions or need additional information, please feel free to
contact the undersigned.
Sincerely,
GRUNFELD, DESIDERIO, LEBOWITZ,
SILVERMAN & KLESTADT LLP
Alan iv. rvivauaui
4
9952426 3
Statement in Support of Request for Exclusion
on behalf of American Iron & Alloys LLC zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLK
I am Robert McGourty, Director of Strategic Sourcing, of A.M. Castle & Co. ("Castle
Metals") I make this statement in support of the request for exclusion on behalf of American Iron
& Alloys LLC ("AIA") from remedies under the Section 232 National Security Investigation of
Steel with respect to continuous cast iron products known in the trade as "versa-bars." The sole
U.S. producer of the items which are the subject of AIA's exclusion request (continuous cast iron
products) notified us last year that we would no longer be recognized as an as an "authorized
distributor" of their products. AIA is the only U.S. company with the requisite quality that can
supply Castle Metals with this product; if the additional tariff is imposed on the versa-bar
products supplied by AIA, Castle Metal's business will be adversely impacted, either through
unmanageable increased material costs, or through the loss of its sole supplier of said product.
1. A. M. Castle & Co. (OTCQBrCTAM), headquartered at 1420 Kensington Road, Suite
220, Oak Brook, IL 60523, was founded in 1890. Castle Metals is a specialty metals distribution
company. We supply metal products in bar, tube, plate, extrusion, and sheet form to metal users
worldwide. We distribute alloy, carbon, stainless steel, nickel, aluminum, titanium, cast iron,
and red metals. Castle Metal employs approximately 1,000 people in the United States.
2. I have been Director of Strategic Sourcing and Director of Business Development since
June of 2017. Prior to that time, I held various sales and marketing positions with Castle Metals.
I am thoroughly familiar with Castle Metal's purchases of versa-bar and similar products.
3. Castle Metals has purchased continuous cast iron products (versa-bars) from AIA since
2017.
4. Prior to that time, Castle Metals purchased versa-bar from the Charter Dura-Bar division
of Charter Steel, 1800 West Lake Shore Drive, Woodstock, IL 60098 https://www.durabar.com/. Charter Dura-Bar controls approximately 80% of the market for these materials. To
my knowledge, Charter Dura-Bar is the only domestic producer of continuous cast iron material.
Besides Tupy S.A., I am aware of mills in Great Britain and China that can also supply
continuous cast iron products but the quality of the product purchased from those suppliers is not
reliable.
5. In 2017, Charter Dura-Bar informed Castle Metals that it would no longer recognize
Castle Metals as an authorized distributor and would therefore no longer supply Castle Metals
Page 1 of 2
with continuous cast iron materials at a distributor pricing level. Prior to that time, Charter DuraBar had stopped producing small sizes under 2" and most large sizes over 12" particular on large
round, square, and rectangle configurations. It is my understanding that after it stopped
production on these items. Charter Dura-Bar began to import them from mills located in the
European Union and elsewhere.
6. When Charter Dura-Bar cut off our source of supply for continuous cast iron material
products, we identified AIA as the most viable alternate source for these products. AIA was able
to supply Castle Metals with reliable, quality product from their supplier in Brazil, Tupy S.A.
7. With the imposition of a 25% duty of these products, we understand that our purchase
price for the versa-bar products will increase and we will be forced to pass at least some of these
additional costs to our customers or discontinue sales of the product. Some of our customers
may be unable to absorb these additional costs and will either discontinue their purchases of this
product from Castle Metals there by causing direct injury to Castle Metals business.
8. To the best of my knowledge, no U.S. steel producer, other than Charter Dura-Bar
manufactures a substitute or near-equivalent product that would meet the product qualification
requirements for these continuously cast iron products. The versa-bar that we purchase from
AIA is a "niche product" which has particular performance characteristics that are not readily
duplicated by other iron or steel products currei '' " " ' " ' ' " " ce.
Robert McGoufty,'
pirector of Strategic Sourpidg, \
A.M. Castle & Co. ("CaiteMefals")
April 10,2018
Page 2 of2 zyxwvutsrqponmlihgfedcbaXWVUTSRQPONMLKJIHGFEDCBA
9939181 4
107th Congress, 2d Session House Document 107-185
TO FACILITATE POSITIVE ADJUSTMENT TO COMPETITION FROM IMPORTS OF CERTAIN STEEL PRODUCTS tsrqponlihgfedcaZUTSRMF
(see f1
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7#Zl zyxwvutsrqpo
MESSAGE
PROM
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
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
WASHINGTON : 2002 99Â011
To the Congress of the United States: zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJI
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. zyxwvutsrqponmlihgfedcbaXWVUTSRQPONMLKJIHGFEDCBA
(i)
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 dies)
4 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDC
vided 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, and stainless 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;
5 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
(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 each of 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 re-
6 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFED
ductions 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 determine within 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,
7 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFED
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.
(4) Clause (3) above shall not apply to imports of a product that
is the product of a country listed in subdivision (d)(i) of Note 11 in
the Annex to this proclamation if subdivision (d)(ii) of such Note indicates that such country's share of total imports of the product exceeds 3 percent, or that imports of the product from all listed countries with less than 3 percent import share collectively account for
more than 9 percent of total imports of the product. The USTR is
authorized to determine whether a surge in imports of a product
that is the product of a country listed in subdivision (d)(i) undermines the effectiveness of the pertinent safeguard measure and, if
so, upon publication of a notice in the tsrqponlihgfedcaZUTSRMFC Federal Register, to revise
subdivision (d) of Note 11 in the Annex to this proclamation to indicate that such product from such country is not excluded from
such safeguard measure.
(5) Within 120 days after the date of this proclamation, the
USTR is authorized to further consider any request for exclusion
of a particular product submitted in accordance with the procedures set out in 66 Fed. Reg. 54321, 54322—54323 (October 26,
2001) and, upon publication in the Federal Register of a notice of
his finding that a particular product should be excluded, to modify
the HTS provisions created by the Annex to this proclamation to
exclude such particular product form the pertinent safeguard measure established by this proclamation.
(6) In March of each year in which any safeguard measure established by this proclamation remains in effect, the USTR is author-
8 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFE
ized, upon publication in the tsrqponlihgfedcaZUTSRMFC Federal Register of a notice of his
finding that a particular product should be excluded, to modify the
HTS provisions created by the Annex to this proclamation to exclude such particular product from the pertinent safeguard measure established by this proclamation.
(7) 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.
(8) The modifications to the HTS made by this proclamation, including the Annex hereto, shall be effective with respect to goods
entered, or withdrawn from warehouse for consumption, on or after
12:01 a.m., EST, on March 29, 2002, and shall continue in effect
as provided in the Annex to this proclamation, unless such actions
are earlier expressly reduced, modified, or terminated. Effective at
the close of March 21, 2006, or such other date that is 1 year from
the close of the safeguard measures established in this proclamation, the U.S. note and tariff provisions established in the Annex
to this proclamation shall be deleted from the HTS.
IN WITNESS WHEREOF, I have hereunto set my hand this fifth
day of March, in the year of our Lord two thousand two, and of the
Independence of the United States of America the two hundred and
twenty-sixth.
GEORGE W. BUSH.
ANNEX
MODIFICATIONS TO THE HARMONIZED TARIFF
SCHEDULE OF THE UNITED STATES zyxwvutsrqponmlihgfedcbaXWVUTSRQPO
Effective with respect to goods entered, or withdrawn from warehouse for consumption,
on or after March 20, 2002, subchapter III of chapter 99 of the Harmonized Tariff Schedule of
the United States is modified by inserting in numerical sequence the following new U.S. note,
subheadings and superior text thereto, with the language inserted in the columns entitled "
Heading/Subheading", "• Article Description", "Rates of Duty 1ÂGeneral", "Rates of Duty
1ÂSpecial", and "Rates of Duty 2", respectively.
(a) Except as provided rn this note, subheadings 9903.72.30 through 9903.74.24^ inclusive, and superior text
thereto apply to the specified goads entered, or ivithdrawn from warehouse for consumption, on or after
March 20, 2002, from any country other than those expressly exempted herein. The rates of duty in such
subheadings either incorporate-the duty rates specified for such goods in chapters 1"* or 73 of the tariff
schedule or are unchanged from the pertinent provisions of such chapters. Whenever a provision covers "
goods excluded from the application of relief," that term refers to specific steel products that fall within the
applicable superior text to such provision but are enumerated in subdivision (b) or (c) of this noic. The
application of this note to goods of particular countries shall be determined by the terms of such
subheadings and superior text thereto and by the provisions of subdivision [d) of this note. Goods thai arc-
(i) described in the superior text to subheadings 9903.72.01 through 9903.72.1S, inclusive, or the
superior text to subheadings 9903.72.20 through 9903.72.25, inclusive;
fiat-rolled produtns of ball bearing steeTfas defined inaddftfonat U.S. note 7 fh) to chapter 72),
provided for in heading 7225 or 7226; and-'--
(iti) tubing of nonalloy steel, coated with zinc, of a diameter not exceeding 114,3 mm, internally coated
or lined with a non-elcctrically insulating coating material, suitable for use as electrical conduii,
shall be excluded from the subheadings enumerated in the first sentence of this paragraph and no such goods
shall be permitted eniry under such subheadings
For purposes of this note, the following goods, enumerated with the designation assigned to facilitate the
administration of this note, shall be excluded from the application of import relief under one or mere
subheadings enumerated in the first sentence of subdivision (a) of this note, but the appropriate S-digu
subheading number shall be reported for such goods in addition to the 10-digit statistical reporting number
appearing in chapters ! through 97 which would be applicable but for the provisions of this subchapter.
K.M35FL" containing by weight not more than 0 015 percent of carbon: 0 70 or more but
(9)
fjwu^S !o - I (O 0 tsrqponlihgfedcaZUTSRMFC rr\ i
ctuE -ft? jx? c priuj- e i iViv I--
17
ANNEX (continued) zyxwvutsrqponmlkjihgfedcbaZYXWVU
9
minimum coil weigh! of 8164.8 kg with a coil inside diameter of 40.64 cm with a steel core,
with a coi! maximum outside diameter of IS1. 13 cm, with a maximum of one weld '
(identified with a paper flag) per coil, with a surface free of scratches, holes and rust;
(x) Versa-bare, the foregoing which are semi-fmished products ofconlmuous cast gray or ductile iron,
of square or rectangular cross section, containing, by weight, carbon of between 2.9 and 3.7 percent,
silicon of between 1.6 and 2.7 percent, and manganese of between 0.5 and 0.8 percent (provided for
in subheading 7207.20.00), the foregoing designated as X-137;
(xi) products known as "Superplasl SP 300," the foregoing which are plates, pre-forged and rolled
blocks or forged exira-heavy section blocks, with thickness of 152 and 1270 mm, inclusive, widths
of 1990 mm, and lengths of 3048 to 3810 mm, inclusive; containing, by weight, carbon of between
0 235 and 0 265 percent, chromium of between 1.20 and 1.40 percent, manganese of between I 20
and 1.40 percent, nickel ofOJO percem maximum, molybdenum of between 0.35 and 0,45 percent,
silicon of between 0.05 and 0.15 percent, boron of between 0.002 and 0.004 percent, sulphur of
between 0.015 and 0.020 percent; exhibiting oxygen of 20 ppm (pans per million) and hydrogen of
2 ppm; if measuring between 152 and 203 mm displaying through hardness of 269 io 320 Brinnell,
with a maximum dispersion of 15 bhn throughout; if measuring 203 and 1270 mm having through
hardness of 290 to 320 Brtnnell. with a maximum dispersion of 30 bhn throughout; all such
products conforming to ultrasonic testing requirements of American Society of Testing and
Materials (ASTM) A578-S9, with a 2mm Oat bottom hole, and homogenous product (free of
hardspots) cleanliness guaranteed per ASTM 345 method A, worst field ratings A; 1.5 maximum, B.
1.5 maximum, C 1.0 maximum, D: 1.5 maxunum, all the foregoing designated as X-083;
f xit) products known as "NaK 55," the foregoing which are doubie-meited hot-roiled plastic mold steel
products containing; by weight , carbon of 0.15 percent, tnangtmese of 1,50 percent .-sulfur of 0.10
percent, copper of 1.00 percent, silicon ofO.SO percent, molybdenum of 0.30 percent, nickel oD.OO
peecent, and aluminum of 1.00 percent, displaying the following mechanical properties: hardness of
Hftc 40, yield strength (0.2 percent offset, 41 HRc) of 1010 MPa, tensile strength of 1255 MPa,
reduction of 39.8 percent; elongation (in 50 mm) of 15.6 percent; modulus of elasticity at room
temperature of 30.0 x 10* psi; with Charpy-noteh impact strength longitudinal 9.8 J and transverse
of 7.6 i; displaying the following physical properties: coefficient of thermal expansion from 20 "C to
lOO-Cof 11.3 x lO-*^'1, from 20"C to 200*Cof 12.6 x IO-* "C'and from20"Cto 300«Cof 13 5
x IC* °C'; coefficient of thermal conductivity J/smK at 93 tsrqponlihgfedcaZUTSRMFC "C " 41.4 oral 204 X ^ 42.2; having
magnetic properties of maximum magnetic permeability of 380, saturated magnetism of 16,350
Gauss and residual magnetism of 8,500 Gauss, all the foregoing designated as X-134;
(xni) fiat-rolled ripper shank alloy sleol, having rounded comers with radii of at least 6 mm but not more
than 25 mm; of SAE 4IB30 modified chemistry containing manganese of at least 1.00 percent but
not more than 1.30 percent by weight, and containing chromium of at least 0.40 percent but not
more than 0.65 percent by weight; with a thickness of at least 72 mm but not more than 77 mm and
a width of at least 327 mm but not more than 337 mm, or with a thickness of at least 86.5 mm but
not more than 91.5 mm and a width of at least 352 mm but not more than 362 mm, or with a
thickness of at least 86.5 mm but not more than 91.5 mm and a width of at least 377 mm but not
more than 387 mm, or with a thickness of at least 96.5 mm but not more than 101,5 mm and a width
of at least 395 mm but not more than 405 mm, or with a thickness of at least 106.5 mm but not more
than 1115 mm and a width of at least 444,5m m but not more than 455.5 mm, the foregoing
products designated as X-l 15 or X-148;
(xivl fiat-rolled steel products, hot-rolled, designated as X-100, the foregoing manufactured to API Grade
X-52 or higher, supplied in widlhs greater than 3810 mm,
(xv) 13 percent manganese austenitic sheet, not further worked than hot rolled, containing, by weight,
carbon of between 0.80 and 0.90 percent, silicon of between 0.10 and 0.45 percent, manganese of
between 12.00 and 14.00 percent, phosphorus of 0.035 percenl maximum, sulfur of 0.040 percent
maximum, chromium of 0.50 percent maximum, molybdenum of 0.15 percent maximum, and nickel
of 0.40 percent, the foregoing designated as X-032;
text/markdown
NEW YORK WASHINGTON, DC MILWAUKEE LOS ANGELES HONG KONG zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA GRUNFELD DESIDERIO I LEBOWITZ SILVERMAN 3 KLESTADT LLP
DIRECT DIAL/EMAIL (212) 973-7722 AKlestadt@GDLSKxom
May 2, 2018 zyxwvutsrqponmlihgfedcbaXWVUTSRQPONMLKJIHGFEDCBA
### VIAELECTRONICFILING Mr. Brad Botwin Director, Industrial Studies Office ofTechnology Evaluation Bureau ofIndustry and Security U.S. Department ofCommerce Room 1093 1401 Constitution AvenueNW Washington, DC 20230
Re: Request forExclusions Fromthe Remedies Instituted in Presidential Proclamations Adjusting Imports ofSteel Into the United States OnbehalfofAmerican Iron &Alloys LLC. Product: Versa-Bar Continuous Cast Iron. Our Reference: 13086-024001
DearMr. Botwin: Onbehalfofour client, American Iron &AlloysLLC ("American Iron"), 1700 Airport Road,Waukesha,WI 51388, werequestthe Versa-Bar productsproduced in Brazil be excluded fromthe Remedies Instituted in Presidential Proclamations Adjusting Imports ofSteel Intothe United States. Presidential Proclamation 9705 of March 8. 2018under Section 232 ofthe Trade Expansion Act of 1962 (19 U.S.C. 1862). The accompanyingrequestsprovidethe detail forthe various Versa-Barproducts.
Versa-Barproducts are "semi-fmishedbars" asthisrelatesto thembeing castthrough a graphite die, continuously cast gray and ductile iron. Thisprocess forms the as-castironbar to shape (round, square,rectangle, or special shape) fromthe iron's molten state. They are not otherwise altered mechanically, such asrolled or drawn down to shape. They are containingby weight 0.25percent ormore ofcarbon, in square,rectangular, circular or other cross-sections.
599 LEXINGTON AVENUE FL 36 NEWYORK, NY 10022-7648 I TEL. 212.557.4000 I www.GDLSK.com
# GDLSK
GRUNFELD DESIDERIO LEGOWITZ SILVERMANS KLESTADT LLP These cast ironproducts inbar shape areimportedunder Harmonized TariffSchedules of the United States (HTSUS) subheadings; 7207.20.0025 (rectangles including squareshaving a width measuring less than4 times thethickness); 7207.20.0045 (rectangles including squareshaving a width measuring at least4 times thethickness); 7207.20.0075 (circular cross sections); and 7207.20.0090 (other special shapes not specificallyprovided for).
Versa-Bar continuous cast ironis most commonlyusedinthe fluidpower, bearing, patterns andmachine component manufacturing industries. Versa-Bar cast ironbarproducts are favoredbythose industries for theirmachinability, functionality, wear and durability. Such features makeVersa-Bar criticalto domestic infrastructure projects and manufacturers ofa variety ofproducts.
It shouldbenoted that Versa-Bar castironbarproducts imported from Brazilhavebeen excluded frompriortraderemedy actions. In 2002under Section 203 ofthe Trade Act of 1974 (19 U.S.C. 2251, tsrqponlihgfedcaZUTSRMFC
etseq.),the Presidenttook action withrespectto imports ofcertain steel products imposing a safeguard measure (tariffrate quota). SeeMessageFrom The President Of The United States Transmitting Documents Describing Safeguard ActionProclaimed On Imports OfCertain Steel Products. Pursuant To Section 203(a)(1) OfThe Trade Act Of 1974. House
Doc. 107-185 (March 6, 2002). That action was designedtorelieve and prevent serious injury,
or threat ofserious injury, to domestic industry. Inthatproceeding,the President determined that Versa-Bar imports from Brazil did notpose a serious threat ofinjuryto domestic industry producing like or directly competitiveproducts and Versa-Bar was excluded fromthe action.
See Annex, H. Doc 107-185 at page 17.
2
# GDLSK
GRUNFELD DESIDERIO ! LEBOWITZ SILVERMANS KLESTAOT LLP
Likewise, inthe antidumping investigation ofCertain Alloy and Carbon Hot-Rolled Bars. Rods, and Semifinished Products ofSpecial Bar Quality (SOB) SteelFrom Brazil (A-351-213, A-351-214), the International Trade Commission ("ITC") determinedthat sales ofVersa-Bar products did notinjure, northreaten material injuryto, the U.S. domestic producers offinished
or semifinished SBQbars androds. tsrqponlihgfedcaZUTSRMFC SeeITC,Final Determination: CertainAlloy and Carbon Hot-Rolled Bars, Rods, and Semifinished Products ofSpecial Bar Quality SteelFrom Brazil InvestigationNo. 731-TA-572 (Final), 58 Fed. Reg. 38138 (July 15, 1993).1
The Versa-Bar continuous castironproduct, imported from Brazil,represents theprimary product soldbyAmerican Iron. In additiontoraw materials supply, American Ironprovides
customprocessing, including finish machining,turning,boring, cuttingto length, grinding,plate slitting, milling andplate cutting. American Iron employs approximately 25people in Wisconsin. The application ofa 25%tariffto Versa-Barproducts wouldprevent American Iron from selling at a competitiveprice and would seriously endanger its abilityto continue as an ongoingbusiness. This additional tariffwould likelyresult inthe loss ofemployment for all 25 American Iron employees inWisconsin.
In addition to the 25people employedbyAmerican Iron inWisconsin,thejobs of Americans employedbyits customers and distributors would also bejeopardizedbythe 25% tariff. American Iron fulfills a critical needinthe U.S. continuous castiron market, inthatmany ofits customers areunable to source fromthe one U.S. manufacturer ofcontinuous cast iron (Dura-Bar). This inabilityresults from: (1)the U.S. manufacturer'srefusalto supplyto their zyxwvutsrqponmlihgfedcbaXWVUTSRQPONMLKJIHGFEDCBA
1 Certain Special Quality Carbon and Alloy HotÂRolled Steel Bars and Rods and Semifinished Products from Brazil. Investigation No. 731ÂTAÂ572. ITC Pub. 2662 (July 1993). 3GRUNFELD ! DESIDERIO ! LEBOWITZ
SILVERMANI KLESTADT LLP business (as inthe case offormer long-time Dura-Bar customer, A.M. Castle); (2)theU.S. manufacturerno longerproducestheproducts theyrequire (e.g., Dura-Bar does not sell certain productsthat are smallerthan 2inches and does not manufacture many large shapes); and/or (3) theU.S.manufacturer's minimum contractrequirements and/or surcharges, whichmake certain American companiesunableto source from Dura-Bar. As a result,these U.S. manufacturing companiesrely on American Iron astheir sole source ofsupply, makingthe viability of American Iron critical totheir business,their employees, andthe U.S. infrastructureprojectsthat
many ofthese companies serve. Attached is an Affidavit from former Dura-Bar customer, A.M. Castle & Co., which speaks to its experience with the U.S. supplier.
Wetrust this information will assist in makingyour determination. Webelievethe uniquenature ofthe Versa-Bar continuous cast ironproducts, the importance ofthisproductto U.S. industry and infrastructure, andthe loss ofU.S.jobs that would occur werethetariff imposed,justifythe exclusion ofVersa-Barproducts imported from Brazil fromthe Presidential Action.Ofcourse, ifyouhave any questions or need additional information,please feel freeto
contacttheundersigned. Sincerely, GRUNFELD,DESIDERIO,LEBOWITZ, SILVERMAN & KLESTADTLLP
### Alaniv.rvivauaui
4
9952426 3Statement in Support ofRequest forExclusion onbehalfofAmerican Iron & Alloys LLC zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA IamRobert McGourty, Director ofStrategicSourcing, ofA.M. Castle& Co. ("Castle Metals") Imakethis statement in support oftherequest for exclusion on behalfofAmerican Iron &Alloys LLC ("AIA") from remediesunder the Section 232National Security Investigation of Steel withrespectto continuous cast ironproductsknown in the trade as"versa-bars." Thesole U.S.producer ofthe itemswhich are thesubject ofAIA's exclusionrequest (continuous cast iron products) notifiedus last yearthat we would no longerbe recognized as an as an "authorized distributor" oftheirproducts. AIAis the only U.S. company withtherequisitequality that can supply CastleMetals withthisproduct; ifthe additionaltariffis imposed on theversa-bar products suppliedby AIA,Castle Metal's business willbeadversely impacted, eitherthrough unmanageable increased material costs, or throughthe loss ofitssole supplier ofsaidproduct.
1. A.M. Castle & Co. (OTCQBrCTAM),headquartered at 1420 Kensington Road, Suite 220, Oak Brook, IL 60523, was founded in 1890. Castle Metals isa specialty metalsdistribution company. We supply metalproducts inbar, tube,plate, extrusion, and sheet formtometal users worldwide. We distributealloy, carbon, stainless steel, nickel, aluminum, titanium, castiron, andred metals. Castle Metal employs approximately 1,000peoplein the United States. 2. I havebeen Director ofStrategic Sourcing andDirectorofBusiness Development since June of2017. Priorto thattime,Iheld various sales andmarketingpositions with CastleMetals. Iam thoroughly familiar with Castle Metal's purchases ofversa-bar and similarproducts. 3. CastleMetalshas purchased continuous cast ironproducts (versa-bars) from AIA since 2017. 4. Priorto thattime, CastleMetalspurchased versa-bar from the Charter Dura-Bar division ofCharter Steel, 1800 WestLake Shore Drive,Woodstock, IL 60098https://www.durabar.com/. Charter Dura-Bar controls approximately 80% ofthe market for thesematerials. To myknowledge, Charter Dura-Baristhe only domesticproducer ofcontinuous castiron material. Besides TupyS.A., Iam aware ofmillsin GreatBritain and China that can also supply continuous cast ironproductsbutthe quality oftheproductpurchased from those suppliers isnot reliable. 5. In 2017, Charter Dura-Barinformed CastleMetals thatit wouldno longerrecognize Castle Metals as an authorized distributorand wouldtherefore no longer supply Castle Metals Page 1of2with continuous castiron materials at a distributorpricing level. Priortothattime, CharterDuraBarhad stoppedproducing small sizesunder 2"andmost large sizes over 12"particular on large round, square, andrectangle configurations. Itis my understandingthat afterit stopped production ontheseitems. Charter Dura-Barbegan to importthem from millslocated in the EuropeanUnion and elsewhere. 6. When Charter Dura-Bar cut offour source ofsupplyfor continuous castiron material products, we identifiedAIA as the mostviable alternatesource for theseproducts. AIA was able to supply CastleMetals withreliable, qualityproduct from their supplier inBrazil, Tupy S.A. 7. With the imposition ofa 25%duty oftheseproducts, weunderstandthat ourpurchase price for the versa-barproducts willincrease and we willbe forced topass atleast someofthese additional costs to our customers or discontinue salesoftheproduct. Some ofour customers maybe unableto absorbthese additional costs and will either discontinue theirpurchasesofthis product from CastleMetals thereby causing direct injuryto Castle Metalsbusiness. 8. To the best ofmyknowledge, no U.S.steelproducer, other than CharterDura-Bar manufactures asubstitute ornear-equivalentproduct thatwouldmeet theproduct qualification requirements forthese continuously cast ironproducts. The versa-barthat wepurchase from AIA is a "nicheproduct" whichhasparticularperformance characteristics thatare notreadily duplicatedby other iron orsteelproducts currei '' " " ' " ' ' " " ce.
RobertMcGoufty,' pirector ofStrategicSourpidg, \ A.M. Castle &Co. ("CaiteMefals") April 10,2018
Page 2 of2 zyxwvutsrqponmlihgfedcbaXWVUTSRQPONMLKJIHGFEDCBA
9939181 4107th Congress, 2d Session House Document 107-185
### TO FACILITATE POSITIVE ADJUSTMENT TO COMPETITION FROM IMPORTS OF CERTAIN STEEL PRODUCTS tsrqponlihgfedcaZUTSRMFC
### (see f1
### p p^e / 7
-
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### 7#Zl zyxwvutsrqponmlihgfedcbaXWVUTSRQPONMLKJIHGFEDCBA
## MESSAGE PROM
# 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
### 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
WASHINGTON : 2002 99Â011
### To the Congress of the United States: zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
### 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.
### GEORGEW. BUSH. THE WHITE HOUSE,March 5, 2002. zyxwvutsrqponmlihgfedcbaXWVUTSRQPONMLKJIHGFEDCBA
### (i)
### To
### FACILITATE POSITIVEADJUSTMENT TO COMPETITION FROM IMPORTS OFCERTAIN STEELPRODUCTS
BYTHE PRESIDENTOF THE UNITEDSTATES OFAMERICA
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 alloyfittings"); (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 dies)
### 4 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
### vided 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 byimports. 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, and stainless steel wire. The ITC made affirmative findings with respect to imports from Canada of hot-rolledbar, 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;
### 5 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
### (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 each of Canada and Mexico of certain flat steel, tin mill products, hot-rolled bar, cold-finished bar, rebar, certain tubular products, carbon and alloyfittings, 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 (19U.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 ofthe 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 re-
### 6 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
### ductions 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 11in 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 modifiedto 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 effortsby 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 determine within 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 WTOAgreement 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,
### 7 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
### modification, continuance, or imposition ofany 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 oftitle 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 ofduty. (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 bythis proclamation, and such imports shall not be counted toward the tariff rate quota limits that trigger the over-quota rates of duties. (4) Clause (3) above shall not apply to imports of a product that is the product of a country listed in subdivision (d)(i) of Note 11 in the Annex to this proclamation if subdivision (d)(ii) ofsuch Note indicates that such country's share of total imports of the product exceeds 3 percent, or that imports of the product from all listed countries with less than 3 percent import share collectively account for more than 9 percent of total imports of the product. The USTR is authorized to determine whether a surge in imports of a product that is the product of a country listed in subdivision (d)(i) undermines the effectiveness of the pertinent safeguard measure and, if so, upon publication of a notice in the tsrqponlihgfedcaZUTSRMFC
### Federal Register, to revise subdivision (d) of Note 11 in the Annex to this proclamation to indicate that such product from such country is not excluded from such safeguard measure. (5) Within 120 days after the date of this proclamation, the USTR is authorized to further consider any request for exclusion of a particular product submitted in accordance with the procedures set out in 66 Fed. Reg. 54321, 54322—54323 (October 26, 2001) and, upon publication in the Federal Register of a notice of his finding that a particular product should be excluded, to modify the HTS provisions created by the Annex to this proclamation to exclude such particular product form the pertinent safeguard measure established by this proclamation. (6) In March of each year in which any safeguard measure established by this proclamation remains in effect, the USTR is author-
### 8 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
### ized, upon publication in the tsrqponlihgfedcaZUTSRMFC
### Federal Register of a notice of his finding that a particular product should be excluded, to modify the HTS provisions created by the Annex to this proclamation to exclude such particular product from the pertinent safeguard measure established by this proclamation. (7) Any provision of previous proclamations and Executive Orders that is inconsistent with the actions taken in this proclamation is superseded to the extent ofsuch inconsistency. (8) The modifications to the HTS made by this proclamation, including the Annex hereto, shall be effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m., EST, on March 29, 2002, and shall continue in effect as provided in the Annex to this proclamation, unless such actions are earlier expressly reduced, modified, or terminated. Effective at the close of March 21, 2006, or such other date that is 1year from the close of the safeguard measures established in this proclamation, the U.S. note and tariff provisions established in the Annex to this proclamation shall be deleted from the HTS. IN WITNESSWHEREOF, I have hereunto set my hand this fifth day of March, in the year of our Lord two thousand two, and ofthe Independence of the United States of America the two hundred and twenty-sixth.
### GEORGE W.BUSH.
### ANNEX MODIFICATIONSTOTHEHARMONIZEDTARIFF SCHEDULEOFTHEUNITEDSTATES zyxwvutsrqponmlihgfedcbaXWVUTSRQPONMLKJIHGFEDCBA
Effective with respect to goods entered, or withdrawnfrom warehouseforconsumption, onor afterMarch20, 2002, subchapter IIIofchapter 99 oftheHarmonized TariffSchedule of theUnited States is modified byinserting in numerical sequence the following new U.S. note, subheadings and superior text thereto, with thelanguage insertedin thecolumns entitled " Heading/Subheading", "• Article Description", "Rates ofDuty 1ÂGeneral", "Rates ofDuty 1ÂSpecial", and "Rates ofDuty 2", respectively.
(a) Except as provided rn this note, subheadings 9903.72.30 through 9903.74.24^ inclusive, and superior text
thereto apply to the specified goads entered, or ivithdrawn from warehouse for consumption, on or after March 20, 2002, from any country other than those expressly exempted herein. The rates of duty in such subheadings either incorporate-the duty rates specified for such goods in chapters 1"* or 73 of the tariff schedule or are unchanged from the pertinent provisions of such chapters. Whenever a provision covers " goods excluded from the application of relief,"that term refers to specific steel products that fall within the applicable superior text to such provision but are enumerated in subdivision (b) or (c) of this noic. The application of this note to goods of particular countries shall be determined by the terms of such subheadings and superior text thereto and by the provisions of subdivision [d) of this note. Goods thai arc- (i) described in the superior text to subheadings 9903.72.01 through 9903.72.1S, inclusive, or the
superior text to subheadings 9903.72.20 through 9903.72.25, inclusive;
fiat-rolled produtns of ball bearing steeTfas defined inaddftfonat U.S. note 7fh) to chapter 72), provided for in heading 7225 or 7226; and-'--
(iti) tubing of nonalloy steel,coated with zinc, of a diameter not exceeding 114,3 mm, internally coated
or lined with a non-elcctrically insulating coating material, suitable for use as electrical conduii,
shall be excluded from the subheadings enumerated in the first sentence of this paragraph and no such goods shall be permitted eniry under such subheadings
For purposes of this note, the following goods, enumerated with the designation assigned to facilitate the administration of this note, shall be excluded from the application of import reliefunder one or mere subheadings enumerated in the first sentence of subdivision (a) of this note, but the appropriate S-digu subheading number shall be reported for such goods in addition to the 10-digit statistical reporting number appearing in chapters ! through 97 which would be applicable but for the provisions of this subchapter.
K.M35FL" containing by weight not more than 0 015 percent of carbon: 0 70 or more but
(9) fjwu^S !o - I(O 0 tsrqponlihgfedcaZUTSRMFC rr\ i
ctuE -ft? jx? c priuj- e i iViv I--
### 17
ANNEX (continued)zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA
9
minimum coil weigh! of 8164.8 kg with a coil inside diameter of 40.64 cm with a steel core, with a coi! maximum outside diameter of IS1. 13 cm, with a maximum of one weld ' (identified with a paper flag) per coil, with a surface free of scratches, holes and rust;
(x) Versa-bare, the foregoing which are semi-fmished products ofconlmuous cast gray or ductile iron,
of square or rectangular cross section, containing, by weight, carbon of between 2.9 and 3.7 percent, silicon of between 1.6 and 2.7 percent, and manganese of between 0.5 and 0.8 percent (provided for in subheading 7207.20.00), the foregoing designated as X-137;
(xi) products known as "Superplasl SP 300," the foregoing which are plates, pre-forged and rolled
blocks or forged exira-heavy section blocks, with thickness of 152 and 1270 mm, inclusive, widths of 1990 mm, and lengths of 3048 to 3810 mm, inclusive; containing, by weight, carbon ofbetween 0 235 and 0 265 percent, chromium of between 1.20 and 1.40 percent, manganese of between I 20 and 1.40 percent, nickel ofOJO percem maximum, molybdenum of between 0.35 and 0,45 percent, silicon of between 0.05 and 0.15 percent, boron of between 0.002 and 0.004 percent, sulphur of between 0.015 and 0.020 percent; exhibiting oxygen of 20 ppm (pans per million) and hydrogen of 2 ppm; if measuring between 152 and 203 mm displaying through hardness of 269 io 320 Brinnell, with a maximum dispersion of 15 bhn throughout; if measuring 203 and 1270 mm having through hardness of 290 to 320 Brtnnell. with a maximum dispersion of 30 bhn throughout; all such products conforming to ultrasonic testing requirements of American Society of Testing and Materials (ASTM) A578-S9, with a 2mm Oat bottom hole, and homogenous product (free of hardspots) cleanliness guaranteed per ASTM 345 method A, worst field ratings A; 1.5 maximum, B. 1.5 maximum, C 1.0 maximum, D: 1.5 maxunum, all the foregoing designated as X-083;
fxit) products known as "NaK 55," the foregoing which are doubie-meited hot-roiled plastic mold steel
products containing; byweight, carbon of 0.15 percent, tnangtmese of 1,50 percent.-sulfur of 0.10 percent, copper of 1.00 percent, silicon ofO.SO percent, molybdenumof 0.30 percent, nickel oD.OO peecent, and aluminum of 1.00 percent, displaying the following mechanical properties: hardness of Hftc 40, yield strength (0.2 percent offset, 41 HRc) of 1010 MPa, tensile strength of 1255 MPa, reduction of 39.8 percent; elongation (in 50 mm) of 15.6 percent; modulus of elasticity at room temperature of 30.0 x 10* psi; with Charpy-noteh impact strength longitudinal 9.8 J and transverse of 7.6 i; displaying the following physical properties: coefficient of thermal expansion from 20 "C to lOO-Cof 11.3 x lO-*^'1, from 20"C to 200*Cof 12.6 x IO-* "C'and from20"Cto 300«Cof 13 5
x IC* °C'; coefficient of thermal conductivity J/smK at 93tsrqponlihgfedcaZUTSRMFC "C " 41.4 oral 204 X ^42.2; having magnetic properties of maximum magnetic permeability of 380, saturated magnetism of 16,350 Gauss and residual magnetism of 8,500 Gauss, all the foregoing designated as X-134;
(xni) fiat-rolled ripper shank alloy sleol, having rounded comers with radii of at least 6 mm but not more
than 25 mm; of SAE 4IB30 modified chemistry containing manganese of at least 1.00 percent but not more than 1.30 percent by weight, and containing chromium of at least 0.40 percent but not
more than 0.65 percent by weight; with a thickness of at least 72 mm but not more than 77 mm and
a width of at least 327 mm but not more than 337 mm, or with a thickness of at least 86.5 mm but not more than 91.5 mm and a width of at least 352 mm but not more than 362 mm, or with a thickness of at least 86.5 mm but not more than 91.5 mm and a width of at least 377 mm but not
more than 387 mm, or with a thickness of at least 96.5 mm but not more than 101,5 mm and a width of at least 395 mm but not more than 405 mm, or with a thickness of at least 106.5 mm but not more than 1115 mm and a width of at least 444,5m m but not more than 455.5 mm, the foregoing products designated as X-l 15 or X-148; (xivl fiat-rolled steel products, hot-rolled, designated as X-100, the foregoing manufactured to API Grade
X-52 or higher, supplied in widlhs greater than 3810 mm, (xv) 13 percent manganese austenitic sheet, not further worked than hot rolled, containing, by weight,
carbon ofbetween 0.80 and 0.90 percent, silicon of between 0.10 and 0.45 percent, manganese of between 12.00 and 14.00 percent, phosphorus of 0.035 percenl maximum, sulfur of 0.040 percent maximum, chromium of 0.50 percent maximum, molybdenum of 0.15 percent maximum, and nickel of 0.40 percent, the foregoing designated as X-032;