To Facilitate Positive Adjustment to Competition From Imports of Fine Denier Polyester Staple Fiber

[Federal Register Volume 89, Number 220 (Thursday, November 14, 2024)]

[Presidential Documents]

[Pages 89909-89916]

From the Federal Register Online via the Government Publishing Office [www.gpo.gov]

[FR Doc No: 2024-26714]

Presidential Documents

Federal Register / Vol. 89, No. 220 / Thursday, November 14, 2024 /

Presidential Documents

[[Page 89909]]

Proclamation 10857 of November 8, 2024

To Facilitate Positive Adjustment to Competition

From Imports of Fine Denier Polyester Staple Fiber

By the President of the United States of America

A Proclamation

1. On August 26, 2024, the United States International

Trade Commission (USITC) transmitted to the President a

report (USITC 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 fine denier polyester staple fiber (fine

denier PSF). The product subject to the USITC's

investigation and determination excluded certain fine

denier PSF described in the USITC's Notice of

Institution, 89 FR 18435 (March 13, 2024), and listed

in subdivision (c)(ii) of Note 32 in the Annex to this

proclamation.

2. The USITC reached an affirmative determination under

section 202(b) of the Trade Act (19 U.S.C. 2252(b))

that fine denier PSF is being imported into the United

States in such increased quantities as to be a

substantial cause of serious injury to the domestic

industry producing an article like or directly

competitive with the imported article.

under

section 202(b) of the Trade Act (19 U.S.C. 2252(b))

that fine denier PSF is being imported into the United

States in such increased quantities as to be a

substantial cause of serious injury to the domestic

industry producing an article like or directly

competitive with the imported article.

3. Pursuant to section 301(a) of the United States-

Mexico-Canada Agreement Implementation Act (the ``USMCA

Implementation Act'') (19 U.S.C. 4551(a)), the USITC

made findings as to whether imports of Canada and

Mexico, considered individually, account for a

substantial share of total imports and contribute

importantly to the serious injury caused by imports.

The USITC made negative findings of substantial share

and contribution to injury with respect to imports of

fine denier PSF from Canada and Mexico, considered

individually.

4. Pursuant to statutes implementing certain free trade

agreements to which the United States is a party, the

USITC further found that imports of fine denier PSF

that are a product of Australia, each Dominican

Republic-Central America-United States Free Trade

Agreement country (i.e., Costa Rica, the Dominican

Republic, El Salvador, Guatemala, Honduras, and

Nicaragua) (CAFTA-DR countries), Colombia, Jordan, the

Republic of Korea, Panama, Peru, and Singapore,

individually, are not a substantial cause of serious

injury or threat thereof.

States Free Trade

Agreement country (i.e., Costa Rica, the Dominican

Republic, El Salvador, Guatemala, Honduras, and

Nicaragua) (CAFTA-DR countries), Colombia, Jordan, the

Republic of Korea, Panama, Peru, and Singapore,

individually, are not a substantial cause of serious

injury or threat thereof.

5. Furthermore, pursuant to section 403 of the Trade

and Tariff Act of 1984 (Public Law 98-573, 98 Stat.

2948, 3016 (1984)) (19 U.S.C. 2112 note), the USITC

found that the serious injury substantially caused by

imports to the domestic industry producing a like or

directly competitive article does not result from the

reduction or elimination of any duty provided for under

the United States-Israel Free Trade Agreement. The

USITC also found, pursuant to 19 U.S.C. 2703(e), that

the serious injury substantially caused by imports to

the domestic industry producing a like or directly

competitive article does not result from duty-free

treatment provided for under the Caribbean Basin

Economic Recovery Act (CBERA) provisions of the

Caribbean Basin Initiative trade program or the

Generalized System of Preferences (GSP) program.

6. The USITC Commissioners transmitted to the President

their individual recommendations that each of them

considered would address the serious injury to the

domestic industry and be most effective in facilitating

the

[[Page 89910]]

efforts of the domestic industry to make a positive

adjustment to import competition.

oners transmitted to the President

their individual recommendations that each of them

considered would address the serious injury to the

domestic industry and be most effective in facilitating

the

[[Page 89910]]

efforts of the domestic industry to make a positive

adjustment to import competition.

7. On September 10, 2024, the United States Trade

Representative (USTR) requested additional information

from the USITC under section 203(a)(5) of the Trade Act

(19 U.S.C. 2253(a)(5)). On October 10, 2024, the USITC

provided a response that identified unforeseen

developments that led to the importation of fine denier

PSF into the United States in such increased quantities

as to be a substantial cause of serious injury (USITC

Supplemental Report). The USITC Supplemental Report

also reported, inter alia, that increased imports of

fine denier PSF products of all countries other than

Australia, Canada, the CAFTA-DR countries, Colombia,

Israel, Jordan, the Republic of Korea, Mexico, Panama,

Peru, and Singapore are a substantial cause of serious

injury to the domestic industry.

also reported, inter alia, that increased imports of

fine denier PSF products of all countries other than

Australia, Canada, the CAFTA-DR countries, Colombia,

Israel, Jordan, the Republic of Korea, Mexico, Panama,

Peru, and Singapore are a substantial cause of serious

injury to the domestic industry.

8. 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 (19

U.S.C. 2253(a)(2)), the USITC Report, and the USITC

Supplemental Report, I have determined to implement

action of a type described in section 203(a)(3) (19

U.S.C. 2253(a)(3)) (safeguard measure), with regard to

the following fine denier PSF: fine denier PSF, not

carded or combed, measuring less than 3.3 decitex (3

denier) in diameter, whether coated or uncoated. Fine

denier PSF is classifiable in the Harmonized Tariff

Schedule of the United States (HTS) in subheading

5503.20.00 and described in statistical reporting

number 5503.20.0025 or 9813.00.0520.

9. Pursuant to section 203 of the Trade Act (19 U.S.C.

2253), the action I have determined to take shall be a

safeguard measure in the form of a quantitative

restriction on imports of fine denier PSF described in

paragraph 8 of this proclamation, admitted temporarily

free of duty under bond and entered under subheading

5503.20.00 and described in statistical reporting

number 5503.20.0025 or 9813.00.0520, imposed for a

period of 4 years, with annual reductions in the

within-quota quantities in the second, third,

paragraph 8 of this proclamation, admitted temporarily

free of duty under bond and entered under subheading

5503.20.00 and described in statistical reporting

number 5503.20.0025 or 9813.00.0520, imposed for a

period of 4 years, with annual reductions in the

within-quota quantities in the second, third, and

fourth years. Admission of certain imported articles

free of duty under bond is commonly known as a

Temporary Importation under Bond (TIB). TIB entries are

subject to the conditions appearing in Chapter 98,

Subchapter XIII, of the HTS (19 U.S.C. 1202) as well as

regulations promulgated by U.S. Customs and Border

Protection and the Department of the Treasury.

10. The quantitative restriction of TIB entries

described in paragraph 9 of this proclamation shall be

allocated among all countries except those countries

the products of which are excluded from such

quantitative restriction, pursuant to paragraphs 13

through 16 of this proclamation.

11. This safeguard measure shall apply to imports of

all countries, except as provided in paragraphs 13

through 16 of this proclamation.

ountries except those countries

the products of which are excluded from such

quantitative restriction, pursuant to paragraphs 13

through 16 of this proclamation.

11. This safeguard measure shall apply to imports of

all countries, except as provided in paragraphs 13

through 16 of this proclamation.

12. I have found, pursuant to section 203(e)(4) of the

Trade Act (19 U.S.C. 2253(e)(4)), that the most recent

3 years that are representative of imports of fine

denier PSF and for which data are available are 2018

through 2020, because that period covers the 3 most

recent years before the surge in imports, particularly

under TIB entry, from 2021 to 2023. Setting a

quantitative restriction of zero pounds for the first

year of this action is consistent with this

representative period because the USITC Report

indicates that there were no imports of fine denier PSF

under TIB entry during 2018 through 2020.

13. This safeguard measure shall not apply to imports

of any product described in paragraph 8 of this

proclamation of a developing country, as listed in

subdivision (b)(iii) of Note 32 in the Annex to this

proclamation, as long as such a 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

f

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 8

of this proclamation of a developing

[[Page 89911]]

country that is a World Trade Organization (WTO) Member

results in imports of that product from that developing

country exceeding either of the thresholds described in

this paragraph, I may modify this action to apply to

such product of such country.

14. Pursuant to section 302(a) of the USMCA

Implementation Act (19 U.S.C. 4552(a)), I have

determined after considering the USITC Report and the

USITC Supplemental Report that imports of fine denier

PSF that are the product of Canada and Mexico,

considered individually, do not account for a

substantial share of total imports and do not

contribute importantly to the serious injury found by

the USITC. Accordingly, pursuant to section 302(b) of

the USMCA Implementation Act (19 U.S.C. 4552(b)), I

have excluded fine denier PSF that is the product of

Canada or Mexico from the action I am taking under

section 203 of the Trade Act (19 U.S.C. 2253).

15. After considering the USITC Report and the USITC

Supplemental Report, I have also made the following

determinations with regard to fine denier PSF that is

the product of the following trading partners:

Canada or Mexico from the action I am taking under

section 203 of the Trade Act (19 U.S.C. 2253).

15. After considering the USITC Report and the USITC

Supplemental Report, I have also made the following

determinations with regard to fine denier PSF that is

the product of the following trading partners:

(a) I have determined that imports of fine denier

PSF that are the product of Australia are not a

substantial cause of the serious injury found by the

USITC, and I have therefore determined to exclude such

imports that are the product of Australia from the

action I am taking under section 203 of the Trade Act

(19 U.S.C. 2253), pursuant to section 331(b) of the

United States-Australia Free Trade Agreement

Implementation Act (Public Law 108-286, 118 Stat. 919,

949 (2004)) (19 U.S.C. 3805 note);

(b) In light of the USITC's finding that imports of

fine denier PSF that are the product of each CAFTA-DR

country individually are not a substantial cause of

serious injury or threat thereof, I have determined to

exclude such imports that are the product of each of

the CAFTA-DR countries from the action I am taking

under section 203 of the Trade Act (19 U.S.C. 2253),

pursuant to section 331(b) of the Dominican Republic-

Central America-United States Free Trade Agreement

Implementation Act (the ``CAFTA-DR Act'') (Public Law

109-53, 119 Stat. 462, 495 (2005)) (19 U.S.C. 4101(b));

e CAFTA-DR countries from the action I am taking

under section 203 of the Trade Act (19 U.S.C. 2253),

pursuant to section 331(b) of the Dominican Republic-

Central America-United States Free Trade Agreement

Implementation Act (the ``CAFTA-DR Act'') (Public Law

109-53, 119 Stat. 462, 495 (2005)) (19 U.S.C. 4101(b));

(c) In light of the USITC's finding that imports of

fine denier PSF that are the product of Colombia are

not a substantial cause of serious injury or threat

thereof, I have determined to exclude such imports that

are the product of Colombia from the action I am taking

under section 203 of the Trade Act (19 U.S.C. 2253),

pursuant to section 331(b) of the United States-

Colombia Trade Promotion Agreement Implementation Act

(Public Law 112-42, 125 Stat. 462, 493-94 (2011)) (19

U.S.C. 3805 note);

(d) In light of the USITC's finding that the

serious injury substantially caused by imports to the

domestic industry producing a like or directly

competitive article does not result from the reduction

or elimination of any duty provided for under the

United States-Israel Free Trade Agreement, I have

determined, as part of the action I am taking under

section 203 of the Trade Act (19 U.S.C. 2253), not to

suspend the reduction or elimination of any duty on

imports of fine denier PSF that are the product of

Israel, pursuant to section 403 of the Trade and Tariff

Act of 1984 (19 U.S.C. 2112 note);

determined, as part of the action I am taking under

section 203 of the Trade Act (19 U.S.C. 2253), not to

suspend the reduction or elimination of any duty on

imports of fine denier PSF that are the product of

Israel, pursuant to section 403 of the Trade and Tariff

Act of 1984 (19 U.S.C. 2112 note);

(e) In light of the USITC's finding that imports of

fine denier PSF that are the product of Panama are not

a substantial cause of serious injury or threat

thereof, I have determined to exclude such imports that

are the product of Panama from the action I am taking

under section 203 of the Trade Act (19 U.S.C. 2253),

pursuant to section 331(b) of the United States-Panama

Trade Promotion Agreement Implementation Act (Public

Law 112-43, 125 Stat. 497, 529 (2011)) (19 U.S.C. 3805

note);

(f) In light of the USITC's finding that imports of

fine denier PSF that are the product of Peru are not a

substantial cause of serious injury or threat thereof,

I have determined to exclude such imports that are the

product of Peru from the action I am taking under

section 203 of the

[[Page 89912]]

Trade Act (19 U.S.C. 2553), pursuant to section 331(b)

of the United States-Peru Trade Promotion Agreement

Implementation Act (Public Law 110-138, 121 Stat. 1455,

1486 (2007)) (19 U.S.C. 3805 note);

s that are the

product of Peru from the action I am taking under

section 203 of the

[[Page 89912]]

Trade Act (19 U.S.C. 2553), pursuant to section 331(b)

of the United States-Peru Trade Promotion Agreement

Implementation Act (Public Law 110-138, 121 Stat. 1455,

1486 (2007)) (19 U.S.C. 3805 note);

(g) I have determined that imports of fine denier

PSF that are the product of Singapore are not a

substantial cause of the serious injury found by the

USITC, and I have therefore determined to exclude such

imports that are the product of Singapore from the

action I am taking under section 203 of the Trade Act

(19 U.S.C. 2253), pursuant to section 331(b) of the

United States-Singapore Free Trade Agreement

Implementation Act (Public Law 108-78, 117 Stat. 948,

970 (2003)) (19 U.S.C. 3805 note); and

(h) In light of the USITC's finding that the

serious injury substantially caused by imports to the

domestic industry producing a like or directly

competitive article does not result from duty-free

treatment provided for under the CBERA provisions of

the Caribbean Basin Initiative trade program, I have

determined, as part of the action I am taking under

section 203 of the Trade Act (19 U.S.C. 2253), not to

suspend duty-free treatment pursuant to subsection 1 of

19 U.S.C. 2703(e), with respect to imports of fine

denier PSF that are the product of any CBERA

beneficiary country or territory.

I have

determined, as part of the action I am taking under

section 203 of the Trade Act (19 U.S.C. 2253), not to

suspend duty-free treatment pursuant to subsection 1 of

19 U.S.C. 2703(e), with respect to imports of fine

denier PSF that are the product of any CBERA

beneficiary country or territory.

16. Although the USITC found that imports of fine

denier PSF that are a product of the Republic of Korea

are not a substantial cause of serious injury or threat

thereof, I have determined to include imports of fine

denier PSF that are the product of the Republic of

Korea in the action I am taking under section 203 of

the Trade Act (19 U.S.C. 2253). Specifically,

consistent with the recommendations of certain USITC

Commissioners, I have found that excluding imports of

the Republic of Korea from the quantitative restriction

could significantly undermine this action.

17. While the USITC recommended excluding Jordan from

this action under the United States-Jordan Free Trade

Area Implementation Act (Public Law 107-43, 115 Stat.

243 (2001)) (19 U.S.C. 2112 note), I have instead

determined to exclude such imports that are the product

of Jordan as imports of a developing country from the

action I am taking, pursuant to paragraph 13 of this

proclamation.

Jordan Free Trade

Area Implementation Act (Public Law 107-43, 115 Stat.

243 (2001)) (19 U.S.C. 2112 note), I have instead

determined to exclude such imports that are the product

of Jordan as imports of a developing country from the

action I am taking, pursuant to paragraph 13 of this

proclamation.

18. While the USITC Commissioners recommended that I

impose a tariff-rate quota on fine denier PSF imports,

I have determined not to do so. The USITC Report

indicates that TIB entries of fine denier PSF

contributed significantly to the serious injury to the

domestic industry. In addition, such TIB entries are

undermining the effectiveness of existing trade actions

on fine denier PSF. Therefore, I have decided to tailor

this safeguard remedy to TIB entries of fine denier

PSF. Furthermore, I have determined not to impose a

tariff-rate quota on imports of fine denier PSF in the

interest of balancing the competing interests of

domestic fine denier PSF manufacturers and the impact

of the safeguard remedy on downstream United States

producers, including manufacturers of textiles, defense

products, and consumer products, that rely on fine

denier PSF.

f fine denier PSF in the

interest of balancing the competing interests of

domestic fine denier PSF manufacturers and the impact

of the safeguard remedy on downstream United States

producers, including manufacturers of textiles, defense

products, and consumer products, that rely on fine

denier PSF.

19. Pursuant to section 203(a)(1)(A) of the Trade Act

(19 U.S.C. 2253(a)(1)(A)), I have determined that this

safeguard measure 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 domestic industry to make a positive

adjustment to import competition and provide greater

economic and social benefits than costs, or if I

determine that the conditions under section 204(b)(1)

of the Trade Act (19 U.S.C. 2254(b)(1)) 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

it is necessary to reduce, modify, or terminate the

safeguard measure, I shall proclaim the corresponding

reduction, modification, or termination of the

safeguard measure within 40 days of the date of this

proclamation.

[[Page 89913]]

suant to

Article 12.3 of the WTO Agreement on Safeguards, that

it is necessary to reduce, modify, or terminate the

safeguard measure, I shall proclaim the corresponding

reduction, modification, or termination of the

safeguard measure within 40 days of the date of this

proclamation.

[[Page 89913]]

20. Section 604 of the Trade Act (19 U.S.C. 2483)

authorizes the President to embody in the HTS the

substance of the relevant provisions of that Act, and

of other acts affecting import treatment, and actions

thereunder, including the removal, modification,

continuance, or imposition of any rate of duty or other

import restriction.

NOW, THEREFORE, I, 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, including sections 203 and 604 of the Trade Act

(19 U.S.C. 2253 and 2483), section 302 of the USMCA

Implementation Act (19 U.S.C. 4552), section 331(b) of

the United States-Australia Free Trade Agreement

Implementation Act (19 U.S.C. 3805 note), section

331(b) of the CAFTA-DR Act (19 U.S.C. 4101(b)), section

331(b) of the United States-Colombia Free Trade

Promotion Agreement Implementation Act (19 U.S.C. 3805

note), section 403 of the Trade and Tariff Act of 1984

(19 U.S.C. 2112 note), section 331(b) of the United

States-Panama Trade Promotion Agreement Implementation

Act (19 U.S.C. 3805 note), section 331(b) of the United

States-Peru Trade Promotion Agreement Implementation

Act (19 U.S.C

9 U.S.C. 3805

note), section 403 of the Trade and Tariff Act of 1984

(19 U.S.C. 2112 note), section 331(b) of the United

States-Panama Trade Promotion Agreement Implementation

Act (19 U.S.C. 3805 note), section 331(b) of the United

States-Peru Trade Promotion Agreement Implementation

Act (19 U.S.C. 3805 note), section 331(b) of the United

States-Singapore Free Trade Agreement Implementation

Act (19 U.S.C. 3805 note), and 19 U.S.C. 2703(e), do

proclaim that:

(1) In order to establish a quantitative restriction on

imports of fine denier PSF described in paragraph 9 of

this proclamation, subchapter III of chapter 99 of the

HTS is modified as provided in the Annex to this

proclamation.

(2) The modifications to the HTS made by this

proclamation, included in the Annex to this

proclamation, shall be effective with respect to goods

admitted temporarily free of duty under bond which are

entered under HTS statistical reporting number

9813.00.0520, on or after 12:01 a.m. eastern standard

time 15 days after the date of this proclamation, and

shall continue in effect as provided in the Annex to

this proclamation, unless such action is earlier

expressly reduced, modified, or terminated.

entered under HTS statistical reporting number

9813.00.0520, on or after 12:01 a.m. eastern standard

time 15 days after the date of this proclamation, and

shall continue in effect as provided in the Annex to

this proclamation, unless such action is earlier

expressly reduced, modified, or terminated.

(3) Imports of fine denier PSF that are the product of

Australia, Canada, the CAFTA-DR countries, CBERA

beneficiary countries and territories, Colombia,

Israel, Mexico, Panama, Peru, or Singapore shall be

excluded from the safeguard measure established in this

proclamation, and such imports shall not be counted

toward the quantitative restriction.

(4) Except as provided in clause (5) below, imports of

fine denier PSF that are the product of developing

countries, as listed in subdivision (b)(iii) of Note 32

in the Annex to this proclamation, shall be excluded

from the safeguard measure established in this

proclamation, and such imports shall not be counted

toward the quantitative restriction.

(5) If, after the safeguard measure established in this

proclamation takes effect, I determine that:

(a) the share of total imports of the product of a

country listed in subdivision (b)(iii) of Note 32 in

the Annex to this proclamation, based on imports during

a recent representative period, exceeds 3 percent;

(b) 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; or

i) of Note 32 in

the Annex to this proclamation, based on imports during

a recent representative period, exceeds 3 percent;

(b) 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; or

(c) a country listed in subdivision (b)(iii) of

Note 32 in the Annex to this proclamation is no longer

a developing country for purposes of this proclamation;

then I may revise subdivision (b)(iii) of Note 32 in

the Annex to this proclamation to remove the relevant

country from the list or suspend operation of that

subdivision, as appropriate.

(6) One year from the termination of the safeguard

measure established in this proclamation, the United

States note and tariff provisions established in the

Annex to this proclamation shall be deleted from the

HTS.

[[Page 89914]]

(7) Any provision of previous proclamations and

Executive Orders that is inconsistent with the action

taken in this proclamation is superseded to the extent

of such inconsistency.

IN WITNESS WHEREOF, I have hereunto set my hand this

eighth day of November, in the year of our Lord two

thousand twenty-four, and of the Independence of the

United States of America the two hundred and forty-

ninth.

(Presidential Sig.)

Billing code 3395-F4-P

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[FR Doc. 2024-26714

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