ExecutiveOrdersEO
Proc 9694ProclamationTrump 45 · R Quiet signal

Proclamation 9694

To Facilitate Positive Adjustment to Competition From Imports of Large Residential Washers

TradeTradeEconomy & LaborEconomy & Labor

In simple terms

This proclamation imposes safeguard tariffs and tariff-rate quotas on imported large residential washers and certain washer parts for 3 years plus 1 day, following an ITC finding of serious injury to domestic industry. Canada is excluded entirely; Mexico and most WTO developing countries are initially excluded but subject to surge monitoring. The measure takes effect February 7, 2018.

Federal Register Open PDF 83 FR 3553

Record & deadlines

  1. Signed

    Signed by the President

  2. FR published

    Published in the Federal Register · 83 FR 3553

    Federal Register PDF

  3. Deletion of HTS provisions one year after termination

  4. Termination of safeguard measure after 3 years plus 1 day

  5. Annual duty reductions in second year of safeguard measure

  6. Proclamation of reduction/modification/termination if WTO consultation determination made

  7. Presidential determination within 30 days on WTO consultation necessity to reduce/modify/terminate

  8. Safeguard measure effective; HTS modifications apply to goods entered or withdrawn from warehouse

Key directives

  • Impose tariff-rate quota on washers for 3 years plus 1 day with unchanging in-quota quantities
  • Impose tariff-rate quota on covered washer parts for 3 years plus 1 day with increasing in-quota quantities
  • Exclude Canadian products from safeguard measure
  • Exclude WTO developing country products under 3% individual and 9% collective thresholds
  • Modify HTS subchapter III of chapter 99 per Annex
  • Require privileged foreign status for foreign trade zone admissions on or after February 7, 2018
  • Authorize USTR to remove countries from developing country exclusion list
  • Authorize USTR to convert parts tariff-rate quota to quantitative restriction if surge undermines effectiveness
  • Supersede inconsistent prior proclamations and Executive Orders

Who is ordered

Prior policy

  • supersedeprevious proclamations and Executive Orders

What to expect

Immediate

  • Safeguard measure takes effect February 7, 2018 at 12:01 a.m. EST
  • HTS modifications implemented
  • Foreign trade zone admission rules change

Near term (90d)

  • Potential presidential determination within 30 days on WTO consultation results
  • Corresponding proclamation within 40 days if modification needed
  • USTR monitoring of developing country import shares

Long term

  • Annual duty reductions in years 2 and 3 of safeguard measure
  • Measure terminates after 3 years plus 1 day
  • HTS provisions deleted one year after termination
  • Potential modification to quantitative restriction if parts surge undermines effectiveness

Risks & tensions

  • WTO compliance risk: safeguard measures must meet Agreement on Safeguards requirements; 30/40-day consultation mechanism suggests anticipated disputes
  • Mexico treated differently than Canada despite both being NAFTA partners—may create USMCA (then-NAFTA) friction
  • Developing country surge clause creates uncertainty for exporters; threshold monitoring delegated to USTR discretion
  • Parts tariff-rate quota may be converted to quantitative restriction—creates regulatory uncertainty for supply chains
  • Consumer price increases likely given tariff structure; economic benefits vs costs determination required by statute but method not specified
Proclamation 9694: To Facilitate Positive Adjustment to Competition From Imports of Large Residential Washers · Executive Orders