ExecutiveOrdersEO
Proc 9694ProclamationTrump 45 · R Quiet signal

Proclamation 9694

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

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

Impact dates

  1. Deletion of HTS provisions one year after termination

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

  3. Annual duty reductions in second year of safeguard measure

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

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

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 Safeguard measure effective; HTS modifications apply to goods entered or withdrawn from warehouse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

Timeline

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