iillJ?V 3.1- MISS-OUR. HUB 'lHl'IM-t'tt? H. FIFI AWAFIF sirll HEIDI I4E IIKAMF. Hum-I . art-1H; ilK: also I?L?Liin 1' I I'l .. MAHHAHE riLw 'iA?le?SillHl . "b . - and men a mama L31 IEEB [natt sin-i [mints Laminar. ms. 111 A.AHAMA HI. Flu. HUI COMMITTEE oN . HOMELAND SEcoRirv AND GOVERNMENTAL AFFAIRs \lli- "f 'illi-i WASHINGTON. DC 20510-6250 August 9, 2018 The Honorable Wilbur L. Ross Secretary U.S. Department of Commerce 1401 Constitution Avenue, NW. Washington, DC. 20230 Dear Secretary Ross: The Committee on Homeland Security and Governmental Affairs is continuing to conduct oversight of this Administration?s trade policies, speci?cally relating to the tariffs on steel and aluminum. I write to respectfully request information about the process by which businesses may apply for exclusions from the tariffs for certain products.[ On March 18, 2018, the Commerce Department released information about its exclusion process for speci?c steel and aluminum import products.2 The Department stated that it would approve or deny a business?s exclusion request based on the Department?s determination of whether the ?product is produced in the United States of a satisfactory quality;r or in a suf?cient and reasonably available amount. ?3 Other businesses or organizations wishing to object to an exclusion request could do so by submitting ?speci?c information on the product that their company can provide that is comparable to the steel or aluminum product that is the subject of the exclusion request. ?4 The Department expected that it would evaluate exclusion requests within 90 days.5 Although you promised that the exclusion process would be ?fair and transparent,??3 a number of Wisconsin business leaders have expressed concerns to me about the uncertainty and arbitrary nature of the exclusion process? One business representative called the exclusion process a ?miserable process.?3 He later described how the Department denied his business?s exclusion request following an objection from a domestic steel producer that contained a number Press Release, U.S. Dep?t of Commerce, U.S. Depamnent of Commerce Announces Steel and Aluminum Tariff Exclusion Process (Mar. 13, 20 I 8), Militias-department- id; see also regulationsgov for the exclusion requests and objectionsExamining the E?eer of Tar?r on Wisconsin Businesses: Roandiebie Before the S. Comm. on Homeiand Sec. Eov?tA?air-s, 115th Cong. (Milwaukee, WI) (July 16, 2018). hi. The Honorable Wilbur L. Ross. August 9, "2018. Page 2 of faise and misleading, statements? This Wisconsin business requested an exclusion for material that it .ordered' in the fall of 2017?w?ell before implementation of the tariffsm?and for which the domestic steel producer repreSented it had no short term. capacity Under-Scoringthi's exanipiej Departrnent officials reportedly boasted that ?they hate not granted a single steel exclusion request that. drew-an objection? from domestic steel producers The Department?s denial of the exelUSion request has resulted in this Wisconsin business incurring an; additional $2 6 million tariff cost that cannot be used to expand production or to pay the salaries of new employees '2 Across the country, many businesses share the same frustration about the dif?cult. and time ?consuming exclusion process ICine steel distributor reportedly called the-exclusion proces's? a'n'd ?'adi'sSeryice to our industry and. the biggest insult to our intelligence that'I have-eyer'seen from the. In'lig'htof'the concerns-about. the Department?s exclusion process'for the steel and aluminum tariffs; I respectfully request the following information: 1. Please provide-the renewing?data:- The totalnurnber of exclusion requests submitted to the Department; The total number of exclus'io'nl'requesjts that the Department has approyed; The total number of exclusion requests that the Deparhnent has'denied; The total number of obj cottons the Department has receiyed, and thenumber of objections from domestic steel producer-s; e. The total number of exclusion requests that the Departrnent ultimately approved following; an obj e'ctigon f. The total number of eXclusionreQuests' that the Depa1tmentultimately denied following-an obj ection; and The average time the Department has takento make a determination on an exclusion request. 12.. 5? Fri? 2. Please explain the process by which the Department determines whether to appIUVe-or deny an excluSion request including the following information: The identity of the official(s_9 who ultimately makes. or. certifies the ?nal enclusion decision; b. The Department?s metrics by which it evaluates whether to approve an eXcIUSion._ request; and. o. The Department?s process for-Verifying: factual assertions or claims made in each exclusion request and. objection. Email exchange between Wisconsin business and Senate HSGAC Maj Comm. staff (Aug. 5_ 20189 [on ?le with staff}. to 1m Tankers'ley,_ Steel Giants with Ties to Trump O?iciais Bionic T111 558th for Hundreds of 11111:: The New 'York Times (Aug. 20189, n'ytimes- 201111211 htnril. 12' Email exchange between Wisconsin business and Senate HSGAC Maj. Comm. staff (Aug. 7-, 20 1'39 (on file with staff}. 1-3 Ana Swanson and Tiffany l-Is'u Campanies 621F111: Tara? Woman, but Many M0113 Are Left in Limbo The New York Times (June 22 20189 1?1 nytimes. 11011112111 h'tml. The Honorable Wilbur L. Ross August 9, 2018 Page 3 3. Please explain whether the Department conducted analyses examining the compliance costs of the exclusion process for businesses. If so, please provide the average and total hours and cost of compliance to businesses to submit an exclusion request. In addition, I request that appropriate Department staff arrange a brie?ng with Committee staff on the Department?s exclusion process. Please provide this brie?ng and material as soon as possible but no later than 5:00 pm. on August 23, 2018. The Committee on Homeland Security and Governmental Affairs is authorized by Rule XXV of the Standing Rules of the Senate to investigate ?the ef?ciency, economy, and effectiveness of all agencies and departments of the Government."? Additionally, S. Res. 62 (115th Congress) authorizes the Committee to examine ?the ef?ciency and economy of all branches of the Government including the possible existence of fraud, misfeasance, malfeasance, collusion, mismanagement, incompetence, corruption, or unethical practices. . ??15 If you have any questions, please ask your staff to contact Josh McLeod or Scott Wittmann of the Committee staff at (202) 224-4751. Thank you for your attention to this matter. Sincerely, cc: The Honorable Claire McCaskill Ranking Member The Honorable Robert Lighthizer United States Trade Representative Mr. Peter Navarro Director, National Trade Council Enclosure 1? S. Rule see also S. Res. 445, 108th Cong. {2004). ?5 3. Res. 62 115th Cong. (2017).