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Proc 10857ProclamationBiden · D Quiet signal

Proclamation 10857

To Facilitate Positive Adjustment to Competition From Imports of Fine Denier Polyester Staple Fiber

This proclamation imposes a 4-year safeguard measure in the form of a quantitative restriction on Temporary Importation under Bond (TIB) entries of fine denier polyester staple fiber imports, setting a zero-pound quota for the first year with annual reductions in subsequent years. The measure excludes imports from numerous trading partners including Canada, Mexico, Australia, and others, but notably includes South Korea despite USITC findings, while rejecting the USITC's recommended tariff-rate quota approach.

Federal Register Open PDF 89 FR 89909

Impact dates

  1. Deadline to proclaim corresponding reduction, modification, or termination if WTO consultations require it

  2. Deadline for President to determine if WTO consultations require reducing/modifying/terminating safeguard measure

  3. HTS modifications effective for TIB entries

Key directives

  • Impose quantitative restriction on TIB entries of fine denier PSF for 4 years with zero-pound first year quota
  • Exclude imports from Australia, Canada, CAFTA-DR countries, CBERA beneficiaries, Colombia, Israel, Mexico, Panama, Peru, Singapore
  • Include South Korea despite USITC negative finding
  • Exclude Jordan as developing country under paragraph 13 thresholds
  • Reject tariff-rate quota recommended by USITC
  • HTS modifications effective 15 days after signing
  • Delete HTS provisions one year after safeguard termination

Timeline

Immediate

  • Proclamation signed November 8, 2024
  • Safeguard measure takes effect 15 days after signing (November 23, 2024 at 12:01 a.m. EST)

Near term (90d)

  • Potential WTO consultations may lead to determination within 30 days of signing (by December 8, 2024)
  • If WTO consultations require changes, corresponding proclamation within 40 days of signing (by December 18, 2024)
  • First year of zero-pound quantitative restriction in effect

Long term

  • Annual reductions in within-quota quantities in years 2, 3, and 4 of the 4-year safeguard measure
  • Automatic deletion of HTS modifications one year after termination of safeguard measure
  • Potential modification if developing country import thresholds exceeded

Risks & tensions

  • Overriding USITC recommendation to exclude South Korea creates tension with trade agreement implementation norms
  • Rejecting USITC's tariff-rate quota recommendation in favor of TIB-only restriction may not fully address injury from non-TIB imports
  • Balancing domestic manufacturer protection against downstream industry costs (textiles, defense, consumer products)
  • WTO safeguard consultations could force modification within 40 days
  • Developing country threshold monitoring (3% individual/9% collective) requires ongoing administrative oversight
Proclamation 10857: To Facilitate Positive Adjustment to Competition From Imports of Fine Denier Polyester Staple Fiber · Executive Orders