Economics & Trade Relations

Washington File

29 August 2002

Text: President Signs Proclamation on Korean Line Pipe Imports

(Tariff on Korean line pipe under Section 203 Trade Act rules) (1170)

President Bush signed a proclamation August 28 declaring that line
pipe imports from Korea would face a tariff-rate quota on a quarterly
basis under Section 203 provisions of the Trade Act of 1974.

The tariff-rate quota will begin on September 1 of this year,
according to the proclamation, with a possible March 1, 2004 date for
rescinding the quota.

A February 2000 proclamation had set a tariff on Korean line pipe
imports to last for three years and a day, with the first 9000 short
tons of imports from South Korea exempted from the increased duty
during each year.

"I am replacing the additional duties and 9000 short ton exclusion
applicable to imports of line pipe from Korea with a tariff-rate
quota, on a quarterly basis, to take effect beginning on September 1,
2002," Bush wrote in the proclamation.

Following is the text of the proclamation:

(begin text)

A PROCLAMATION BY THE PRESIDENT:
TO IMPLEMENT AN AGREEMENT REGARDING IMPORTS OF LINE PIPE
UNDER SECTION 203 OF THE TRADE ACT OF 1974

THE WHITE HOUSE

Office of the Press Secretary
For Immediate Release August 28, 2002

TO IMPLEMENT AN AGREEMENT REGARDING IMPORTS OF LINE PIPE
UNDER SECTION 203 OF THE TRADE ACT OF 1974

THE PRESIDENT OF THE UNITED STATES OF AMERICA

A PROCLAMATION

1. On February 18, 2000, pursuant to section 203 of the Trade Act of
1974, as amended (the "Trade Act") (19 U.S.C. 2253), the President
issued Proclamation 7274, which imposed additional duties on certain
circular welded carbon quality line pipe (line pipe) provided for in
subheadings 7306.10.10 and 7306.10.50 of the Harmonized Tariff
Schedule of the United States (HTS) (safeguard measure) for a period
of 3 years plus 1 day, with the first 9000 short tons of imports that
are the product of each supplying country excluded from the increased
duty during each year, and with annual reductions in the rate of duty
in the second and third years.

2. Section 203(a)(3)(E) of the Trade Act (19 U.S.C. 2253(a)(3)(E))
authorizes the President to negotiate, conclude, and carry out
agreements with foreign countries limiting the export from foreign
countries and the import into the United States of an imported article
with regard to which the U.S. International Trade Commission has made
an affirmative finding regarding serious injury, or the threat
thereof. Section 203(f)(1) of the Trade Act (19 U.S.C. 2253(f)(1))
authorizes the President, if action under section 203 takes effect
with regard to an imported article, to negotiate agreements of the
type described in subsection (a)(3)(E) and, after such agreements take
effect, suspend or terminate, in whole or in part, any action
previously taken.

3. The United States Trade Representative, pursuant to sections
141(c)(1)(C) and 203(f)(1) of the Trade Act (19 U.S.C. 2171(c)(1)(C)
and 2253(f)(1)), negotiated an agreement with the Republic of Korea
(Agreement) limiting the export from Korea and import into the United
States of line pipe through the imposition of a tariff-rate quota, to
take effect on September 1, 2002. The agreement was signed on July 29,
2002.

4. Pursuant to sections 203(a)(3)(E) and 203(f) of the Trade Act (19
U.S.C. 2253(a)(3)(E) and 2253(f)), I am replacing the additional
duties and 9000 short ton exclusion applicable to imports of line pipe
from Korea with a tariff-rate quota, on a quarterly basis, to take
effect beginning on September 1, 2002.

5. 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, 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, do proclaim that:

(1) In order to establish a tariff-rate quota to carry out the
Agreement, subchapter III of chapter 99 of the HTS is modified as
provided in the Annex to this proclamation.

(2) Any provision of previous proclamations and Executive Orders that
is inconsistent with the actions taken in this proclamation is
superseded to the extent of the inconsistency.

(3) The modifications to the HTS made by this proclamation shall be
effective with respect to goods entered, or withdrawn from warehouse
for consumption, on or after 12:01 a.m. eastern daylight time, on
September 1, 2002, and shall continue in effect as provided in
subchapter III of chapter 99 of the HTS, unless such actions are
earlier expressly modified or terminated. Effective at the close of
March 1, 2004, or such other date that is 1 year from the close of the
safeguard measure, the modifications to the HTS established in this
proclamation and by Proclamation 7274 shall be deleted from the HTS.

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-eighth day
of August, in the year of our Lord two thousand two, and of the
Independence of the United States of America the two hundred and
twenty-seventh.

GEORGE W. BUSH

(end text)

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