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1 1 (November 4, 2021)

handle is hein.crs/govegyj0001 and id is 1 raw text is: Congressional Research Service nformiing th legislative debat sin e 1914 Section 232 of the Trade Expansion Act of 1962 Section 232 allows the President to impose import restrictions based on an investigation and affirmative determination by the Department of Commerce (Commerce) that certain imports threaten to impair the national security. After conducting eight Section 232 investigations, President Trump acted five times, twice imposing tariffs, declining to act on a sixth finding; another investigation found no threat, and one was terminated. President Biden is addressing the Section 232 tariffs placed by President Trump and has initiated a new investigation. Actions under Section 232 have generated debate in Congress and at the multilateral level in the World Trade Organization (WTO). Some in Congress support legislative options to amend the congressional delegation of authority. Section 232 Process Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. §1862, as amended) allows any department, agency head, or interested party to request that Commerce investigate 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 officers of the United States, and the public, if appropriate, Commerce has 270 days from the initiation date to prepare a report advising the President on whether the targeted product is being imported in certain quantities or under such circumstances to impair U.S. national security, and to provide recommendations based on the findings. The Bureau of Industry and Security (BIS) at Commerce conducts the investigation (15 C.F.R. §705). In terms of national security, Commerce considers (1) existing domestic production of the product; (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, and development 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 substantial unemployment, 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 request public comments or hold hearings, if appropriate. An Executive Summary of the final report (excluding any Updated November 4, 2021 confidential or classified material) must be published in 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, upon receipt of 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 determination, the President must implement the action within 15 days, and submit a written statement to Congress explaining the action or inaction within 30 days (see Figure 1). The President must also publish his determination in the Federal Register. Figure I. Section 232 Investigation Process Source: CRS graphic based on 19 U.S.C. §1862. Ho osSeto 32Dfe from Othe. Section 232 is one of several U.S. policy tools addressing imports. Other tools include Section 201 of the Trade Act of 1974 (19 U.S.C. §§2252 et seq.) to potentially impose temporary safeguard measures for import surges of fairly- traded goods, based on U.S. International Trade Commission (ITC) investigations of whether the imports are causing or threaten to cause serious injury. Rather than focusing on national security, however, Section 201 investigations aim to help the U.S. industry return to health and any actions taken are temporary. Similar to Section 232, presidential action is required under Section 201 before tariffs can be imposed. Other import policy tools include antidumping (AD) and countervailing duty (CVD) actions, provided when a Investigation requested. Secretary of Commerce investigates. Investigation includes consultation with DOD and may include others. 270 day Secretary of Commerce reports findings and recommendations to the President. /ffiengs ffnngar aor ngatve, no f~aae fudtherocion w 90 dey req am~dPresident decides whether to accept findings and recommendations. 3J days Presi dent im plements actio n 0if a ny). President informs Congress.

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