Based on a BIS review of the existing Section 232 exclusion process for areas of improvement and public comments on the current process for submissions to BIS, BIS is publishing this proposed rule to propose revisions to the Section 232 exclusions process, including to the Section 232 Exclusions Portal.
The proposed rule to amend the Section 232 exclusions process comprises four salient modifications designed to refine efficiency, fairness, and transparency.
General Approved Exclusions (GAE) Process Revision: The Bureau of Industry and Security (BIS) suggests redefining criteria for GAEs to focus on Harmonized Tariff Schedule of the United States (HTSUS) codes with low rates of substantiated objections rather than those with zero objections. This proposed change aims to forestall frivolous objections that could hamper a category's eligibility for GAE status. The revision could potentially lead to a 20% decrease in total exclusion requests.
Introduction of General Denied Exclusions (GDE): GDEs act as a counterbalance to GAEs and intend to facilitate the process for products with historically low likelihood of exclusion approval. The criteria for GDEs would mirror those of GAEs but focus on high rates of substantiated objections. This addition will alleviate the burden on both requesters and objectors.
Volume Certification: BIS proposes an amendment to volume certifications on exclusion request forms. Businesses would be required to certify that reasonable attempts have been made to source the required product domestically, or from a partner country, prior to filing an exclusion request. This measure aims to improve data accuracy and therefore, policy-making efficacy.
Objector Certification: Objectors will be required to certify their capability to supply the requested product, backed by evidence such as past sales or ongoing discussions. This change intends to reduce cases of unsuccessful objection follow-throughs.
BIS anticipates that these amendments will improve overall efficiency by reducing the volume of exclusion and objection requests, while simultaneously enhancing the transparency and fairness of the process. Public comments are sought on various aspects, including the type of evidence to support certifications and sourcing attempts.
| Filed on: 08/25/2023 at 8:45 am Scheduled Pub. Date: 08/28/2023 FR Document: 2023-18328 |
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