Proc 7154--ProclamationClinton · D Quiet signal

Proclamation 7154--

To Terminate Temporary Duties on Imports of Broom Corn Brooms

President Clinton terminated temporary safeguard duties on broom corn broom imports that had been imposed in November 1996 under section 203 of the Trade Act of 1974. The termination was based on a USITC report and advice from the Secretaries of Commerce and Labor finding that the domestic industry had not made adequate efforts to adjust to import competition, with HTS modifications effective upon signature.

Impact dates

  1. HTS modifications effective for goods entered or withdrawn from warehouse for consumption

Key directives

  • Terminate safeguard action under section 204(b)(1)(A) of Trade Act
  • Modify HTS subheading 9603.10.50 by adding ',MX' in special column
  • Delete subheadings 9903.96.01 through 9903.96.19 and related superior text
  • Reduce duty rate in subheading 9906.96.02 from 32.5% to 22.4%
  • Terminate suspension of NAFTA concessions for Mexican brooms and implement Proclamation 6641 concessions as scheduled
  • Supersede inconsistent provisions of prior proclamations and Executive orders

Who is ordered

Timeline

Immediate

  • Termination of Proclamation 6961 safeguard duties on broom corn brooms
  • HTS modifications effective upon signature (December 3, 1998)
  • Deletion of subheadings 9903.96.01 through 9903.96.19
  • Reduction of duty rate in subheading 9906.96.02 from 32.5% to 22.4%
  • Restoration of NAFTA concessions for Mexican brooms under Proclamation 6641

Near term (90d)

Long term

  • Potential restructuring or decline of domestic broom corn broom industry
  • Possible resource transfer to other productive pursuits by workers and firms

Risks & tensions

  • Domestic industry found to have failed making adequate adjustment efforts, yet relief terminated rather than extended—unusual outcome under Trade Act
  • Potential job losses in domestic broom manufacturing sector
  • Mexico benefits from restored NAFTA concessions while broader safeguard terminated
  • Small, geographically concentrated industry may face rapid decline
Proclamation 7154--: To Terminate Temporary Duties on Imports of Broom Corn Brooms · Executive Orders