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1 1 (May 07, 2020)

handle is hein.crs/govdaam0001 and id is 1 raw text is: 'o ., k\, 1\\\- ,\Ngm \%\ \\g gp \gpgp N pgg\\\ \\ Wo Updated May 7,2020 Section 232 of the Trade Expansion Act of 1962 The Trump Administration has conducted multiple investigations under Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. § 1862, as amended) to determine if certain imports threaten to impair national security. President Trump acted after five separate investigations found potential threats; two additional investigations are ongoing. Prior to the Trump Administration, 1986 was the last time apresidentimposed tariffs orothertrade restrictions under Section 232, based on a 1983 investigation into imports of machine tools. Recent action under Section 232 has generated considerable debate in Congress and at the multilateral level. Some in Congress favor legis lative initiatives to amend the congressional delegation of authority. Section 232 Process Section 232 allows any department, agency head, or any interestedparty to request the Department of Commerce (Commerce) to initiate an investigation to ascertain the effect of specific imports on U.S. national security. Commerce may self-initiate an investigation. Investigation. Once a Section 232 investigation is requested in writing, Commerce must immediately initiate an appropriate investigation to determine the effects on the national security of the subject imports. After consulting with the Secretary of Defense, other appropriate officeis of the United States, and the public, if appropriate, Commerce has 270 days fromthe initiation date to prepare a report advising the President on whether the targeted productis being imported in certain quantities or under such circumstances to impair U.S. national security, and to provide recommendations basedon the findings. The Bureau of Industry and Security (BIS) at Commerce conducts the investigation (15 CFR Section 705). In terms of nationalsecurity, Commerce considers (1) existing domestic production oftheproduct; (2) future capacity needs; (3) manpower, raw materials, production equipment, facilities, and other supplies needed to meet projected national defense requirements; (4) growth requirements, including the investment, exploration, anddevelopment to meet them; and (5) any other relevant factors. On imports, Commerce must consider (1) the impact of foreign competition on the domestic industry deemed essential for national security; (2) the effects that the displacement of domestic products cause, including substantialunemployment, decreases in public revenue, loss of investment, special skills, or production capacity; and (3) any other relevant factors that are causing, or will cause, a weakening in the national economy. Commerce may requestpublic comments or hold hearings, if appropriate. An Executive Summary of the finalreport (excluding any confidentialor classified material) must be publishedin the Federal Register. Presidential Action and Notification. If Commerce finds in the negative, Commerce informs the President and no further action is required. If Commerce determines in the affirmative, the President, uponreceiptof the report, has 90 days to (1) determine whether he/she concurs with its findings; and (2) if so, determine the nature and duration of the action to be taken to adjust the subject imports. The President may decide to impose tariffs or quotas to offset the adverse effect, without any limits on their duration, or take other action. The President may exclude specific products or countries. After a presidential determination, the President mustimplement the action within 15 days, and submit a written statement to Congress explaining the actions orinactionwithin 30days (seeFigure 1). The President must also publishhis determination in the Federal Register. Figure I. Section 232 Investigation Process ' Investigation requested. Q\Secretary of Commerce investigates. Invcstigation indudes comultation with DOD and may include others. 270 tdays Secretary of Commerce ;eportsfindings and rcommendations to the President rUfh'fr6 a ..or 90 days r~ Kt President decides whether to accept findinqsar d reommendations. 3 dayis ': President implements action (if any). President informs Congress. Source: CRS graphic based on 19 U.S.C. §1862. Prior Section, 232 Actions Prior to the Trump Administration, 26 Section 232 national security investigations were initiated, beginning in 1963. Previous investigations of manufactured goods were more tightly focused on specific products, including antifriction bearings and gears and gearing products. Of these26 cases, Commerce made negative determinations 62% of the time. Prior to 2018, when Commerce made positive determinations, the President recommended action sixtimes (Figure 2). In one case, the President sought voluntary restraint agreements. Five positive determinations and actions were related to petroleumproducts orcrudeoil: one resulted in a conservation fee, laterheld illegalby a federal court; two actions were based onthe Mandatory Oil Import

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