[Federal Register Volume 78, Number 32 (Friday, February 15, 2013)]
[Rules and Regulations]
[Pages 11090-11092]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-03619]
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DEPARTMENT OF COMMERCE
International Trade Administration
19 CFR Part 360
[Docket No.: 121016549-2549-01]
RIN 0625-AA93
Steel Import Monitoring and Analysis System
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
ACTION: Final rule.
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SUMMARY: The Department of Commerce (the Department) publishes this
action to make final a rule to extend the Steel Import Monitoring and
Analysis (SIMA) system until March 21, 2017. The purpose of the SIMA
system is to provide the public statistical data on steel imports
entering the United States seven weeks earlier than it would otherwise
be available to the public. Aggregate data collected from the licenses
are made available to the public on a weekly basis following review by
the Department.
[[Page 11091]]
DATES: This final rule is effective March 21, 2013.
FOR FURTHER INFORMATION CONTACT: For information about the SIMA system,
please contact Steven Presing (202) 482-1672 or Julie Al-Saadawi (202)
482-1930.
SUPPLEMENTARY INFORMATION:
Background
The SIMA system has operated under its current authority since
March 21, 2005. Prior to that date, authority for steel import
licensing and monitoring was derived from Proclamation 7529 of March 5,
2002 (67 FR 10553). Pursuant to sections 201 and 203 of the 1974 Trade
Act, 19 U.S.C. 2251, 2253, Proclamation 7529 implemented safeguard
measures with respect to certain imported steel products, placing
temporary tariffs on these steel imports and providing the steel
industry time to restructure. The monitoring system outlined in
Proclamation 7529 required all importers of steel products to obtain a
license from the Department prior to completing their customs entry
summary documentation. This provided a monitoring tool to ensure that
the effectiveness of the steel safeguard measures was not undermined by
large quantities of imports originating from countries that were
excluded from the tariffs. In Proclamation 7741 of December 4, 2003 (68
FR 68483), the President terminated the steel safeguard measures, but
directed the Secretary of Commerce to continue the monitoring system
until the earlier of March 21, 2005, or such time as the Secretary of
Commerce established a replacement program. On December 9, 2003, the
Department published a notice stating that the system would continue in
effect as described in Proclamation 7741 until March 21, 2005 (68 FR
68594). On August 25, 2004, the Department published an advance notice
of proposed rulemaking soliciting comments from the public on whether
to continue the monitoring system beyond March 21, 2005 (69 FR 52211).
Formerly known as the Steel Import Licensing and Surge Monitoring
program, the Department changed the program's name to the Steel Import
Monitoring and Analysis (SIMA) system upon publication of the August
2004 advance notice. On March 11, 2005, the Department published an
interim final rule responding to the comments received from the public
and implementing a slightly expanded version of SIMA until March 21,
2009. That interim final rule was followed by the publication of the
final rule on December 5, 2005 (70 FR 72373). On December 12, 2008, a
proposed rule was published in the Federal Register (73 FR 75624)
seeking an extension of the SIMA system through March 21, 2013 and
asking for comments from the public. The Department received twelve
submissions, all of which expressed support for the extension. The
Department issued the final rule to extend the application of the SIMA
system until March 21, 2013. On November 13, 2012 (77 FR 67593), the
Department published a proposed rule seeking comments on an extension
of the SIMA system through March 21, 2017. The Department received
three submissions, all of which expressed support for the extension.
The Department is issuing this final rule to extend the application of
the SIMA system until March 21, 2017. No other changes are being made
to the regulations for the SIMA system.
The purpose of the SIMA system is to provide steel producers, steel
consumers, importers, and the general public with accurate and timely
information on anticipated imports of certain steel products. Import
licenses, obtained through the Internet-based SIMA licensing system,
are required for U.S. imports of basic steel mill products. Aggregate
import data obtained from the licenses are updated weekly and posted on
the SIMA Web site monitor. Details of the current system can be found
at http://ia.ita.doc.gov/steel/license.
Response to Comments
Submissions received during the public comment period established
in the proposed rule have been considered in preparing this final rule.
Three submissions were received from a coalition of eight steel trade
groups (referred to as the ``industry''), a downstream steel products
trade group and one of the largest steel producing companies in the
United States. All of the submissions supported the four-year extension
and agreed that the system is a critical tool that helps the industry
to closely monitor steel imports. The comments are summarized below.
The three submissions received are posted on the Federal rulemaking
portal at www.Regulations.gov as well as on the SIMA Web site at http://ia.ita.doc.gov/steel/license.
Comment 1: Commenters strongly support the extension of the SIMA
system for an additional four years. They state that given the
volatility of world steel markets, the SIMA system gives the public
access to the timeliest information possible regarding import patterns
and changes, particularly increased volumes. They also view the system
as an important and transparent tool to support rational decision-
making by all interested parties--steel producers, steel consumers,
importers and U.S. government officials.
Response: The Department agrees that the SIMA system provides the
public valuable and timely information on steel mill imports. It also
agrees that the public posting of aggregate import volume and pricing
data drawn from the licenses provides all interested stakeholders with
a more informed understanding of changing market conditions in a
transparent manner.
Comment 2: Commenters state that there is no significant burden on
the steel importing community to comply with the licensing requirements
of the SIMA system and that this has been confirmed over the last four
years in its current format, which remains unchanged by the proposed
rule.
Response: The Department agrees that there is no significant burden
on steel importers arising out of SIMA system licensing requirements.
The web-based licensing system is automatic and free of charge. The
Department estimates that it continues to take no longer than ten
minutes to complete the automated license form, and for most
applicants, the time spent is much less.
Comment 3: Commenters suggest that the Department make the SIMA
system permanent rather than extend it for another four years. They
state that the system has proven its effectiveness as an important
analytical tool for both steel producers and consumers.
Response: Broad authority to collect information on imports is
granted to the Secretary of Commerce and delegated to the Director of
the Bureau of the Census. When the original safeguard authority for the
SIMA system granted by the President expired in March 2005, the system
was continued pursuant to this Department of Commerce information
collection authority (13 U.S.C. 301(a) and 302). For purposes of
administering the SIMA system, this authority was temporarily
transferred from the Director of the Census Bureau to the Under
Secretary for International Trade for four years. One of the conditions
of the temporary transfer of authority to the Under Secretary for
International Trade was that any future periodic extension of the SIMA
system be notified to the Secretary and subject to review. Therefore,
establishment of a permanent system is not possible under current
authority.
Comment 4: As in 2005, commenters suggest that the Department add
steel wire products to the SIMA licensing requirement and import
monitor. This would provide advance notice of
[[Page 11092]]
importation of these wire products to enable the steel wire downstream
sector to evaluate economic and import patterns earlier than they would
otherwise be publicly available. They indicate a particular interest in
evaluating this data for products where there may be antidumping or
countervailing duty orders in place.
Response: The Department intends to continue to monitor imports and
exports of the specific steel-containing wire products identified in
what is known as ``the downstream monitor.'' The downstream monitor
uses publicly available trade data and is available in a separate
section of the SIMA monitoring system. The Department will not expand
coverage of the SIMA licensing requirement beyond steel mill products.
Although the Department recognizes that certain segments of the steel
industry are interested in the Department's licensing and monitoring of
downstream steel products, the sheer volume of entries associated with
many of these downstream steel products (e.g. nails and staples,
springs, fittings and flanges, and wire hangers) greatly increases the
burden of the system on the trading community and could potentially
overwhelm the SIMA system.
Comment 5: Commenters propose shortening the period of time for
which the licenses are valid, suggesting that applying for the licenses
closer to the date of importation would increase the accuracy of the
data gathered from the licenses.
Response: At this time the Department is not changing the period of
time for which the licenses are valid. Based on the Department's
extensive experience with SIMA, shortening the license time period
would not meaningfully improve the accuracy of the program and may
serve to increase the burden on parties. The 60-day advance period
during which a license may be filed provides a reasonable period of
time for parties to make all necessary business arrangements to ship
goods while providing full transparency for all parties to better
understand and properly anticipate market conditions. The Department
currently provides the license applicant the opportunity to amend and/
or cancel the licenses as needed to reflect the actual terms of the
shipment, should there be changes after the license application.
For the reasons discussed above, the proposed rule (19 CFR part
360) is made final without changes.
Classification
Executive Order 12866
This rule has been determined to be not significant for purposes of
Executive Order 12866.
Executive Order 13132
This rule does not contain policies with federalism implications as
that term is defined in Executive Order 13132.
Regulatory Flexibility Act
The Chief Counsel for Regulation of the Department of Commerce
certified to the Chief Counsel for Advocacy of the Small Business
Administration at the proposed rule stage, that this rule, if adopted,
would not have a significant economic impact on a substantial number of
small entities as that term is defined in the Regulatory Flexibility
Act, 5 U.S.C. 601 et seq. The factual basis for the certification is
found in the proposed rule and is not repeated here. No comments were
received on the certification or the economic impacts of this action.
As a result, no final regulatory flexibility analysis is required and
none was prepared.
Paperwork Reduction Act
This final rule contains collection-of-information requirements
subject to review and approval by the Office of Management and Budget
(OMB) under the Paperwork Reduction Act (PRA). These requirements have
been approved by OMB (OMB No. 0625-0245; Expiration Date: 12/31/2014).
Public reporting for this collection of information is estimated to be
less than ten minutes per response, including the time for reviewing
instructions and completing and reviewing the collection of
information. All responses to this collection of information are
voluntary, and will be provided confidentially to the extent allowed by
law.
Notwithstanding any other provision of law, no person is required
to respond to, nor shall any person be subject to a penalty for failure
to comply with, a collection of information subject to the Paperwork
Reduction Act unless that collection displays a currently valid OMB
Control Number.
List of Subjects in 19 CFR Part 360
Administrative practice and procedure, Business and industry,
Imports, Reporting and recordkeeping requirements, Steel.
Dated: February 8, 2013.
Francisco J. S[aacute]nchez,
Under Secretary for International Trade.
For reasons discussed in the preamble, 19 CFR part 360 is amended
to read as follows:
PART 360--STEEL IMPORT MONITORING AND ANALYSIS SYSTEM
0
1. The authority citation for part 360 continues to read as follows:
Authority: 13 U.S.C. 301(a) and 302.
0
2. Section 360.105 is revised to read as follows:
Sec. 360.105 Duration of the steel import licensing requirement.
The licensing program will be in effect through March 21, 2017, but
may be extended upon review and notification in the Federal Register
prior to this expiration date. Licenses will be required on all subject
imports entered during this period, even if the entry summary documents
are not filed until after the expiration of this program. The licenses
will be valid for 10 business days after the expiration of this program
to allow for the final filing of required Customs documentation.
[FR Doc. 2013-03619 Filed 2-14-13; 8:45 am]
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