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Proc 7274ProclamationClinton · D Quiet signal

Proclamation 7274

To Facilitate Positive Adjustment to Competition From Imports of Certain Circular Welded Carbon Quality Line Pipe

This proclamation imposes temporary safeguard tariffs on imports of circular welded carbon quality line pipe for three years plus one day to protect a domestic industry found to be seriously injured by import competition. The action excludes products from Mexico and Canada under NAFTA provisions, suspends duty-free treatment under several trade preference programs, and includes annual reductions in the tariff rate during the second and third years.

Federal Register Open PDF 65 FR 9193

Impact dates

  1. Alternative HTS deletion date: 1 year from close of relief

  2. Earlier termination date if proclaimed by President

  3. Deletion of U.S. note and tariff provisions from HTS

  4. Termination of import relief and resumption of duty-free preferences

  5. Tariffs effective on goods entered or withdrawn from warehouse

Key directives

  • Increase duty on line pipe (HTS 7306.10.10 and 7306.10.50) for 3 years plus 1 day
  • Exclude first 9,000 short tons per supplying country annually from increased duty
  • Apply annual duty reductions in years 2 and 3
  • Exclude Mexico and Canada from action
  • Suspend GSP duty-free treatment for line pipe from beneficiary countries
  • Suspend CBERA duty-free treatment for line pipe
  • Suspend ATPA duty-free treatment for line pipe
  • Suspend IFTA duty-free treatment for line pipe from Israel
  • Supersede inconsistent prior proclamations and Executive orders

Timeline

Immediate

  • Tariffs effective March 1, 2000 on goods entered or withdrawn from warehouse

Near term (90d)

  • First year of 3-year tariff period begins

Long term

  • Tariff rate reductions in years 2 and 3
  • Relief terminates March 1, 2003 or earlier presidential proclamation
  • HTS provisions delete March 1, 2004 or 1 year after relief ends
  • Duty-free preferences for GSP/CBERA/ATPA/Israel resume upon relief termination

Risks & tensions

  • Trade dispute risk with affected exporting countries
  • Potential retaliation under WTO safeguard rules
  • Higher costs for U.S. industries dependent on line pipe (energy infrastructure, construction)
  • Tension between trade liberalization commitments and domestic industry protection
  • NAFTA exclusion may create trade diversion concerns
Proclamation 7274: To Facilitate Positive Adjustment to Competition From Imports of Certain Circular Welded Carbon Quality Line Pipe · Executive Orders