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Federal Register / Vol. 86, No. 213 / Monday, November 8, 2021 / Notices
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The first sentence focuses directly on national defense requirements, thus making clear that national defense is a subset of the broader term national security. The second sentence focuses on the broader economy, and expressly directs that in the administration of this section the Secretary and the President shall further recognize the close relation of the economic welfare of the Nation to our national security. See 19
U.S.C. 1862d.16
The first sentence directs the Secretary to give consideration to domestic production needed for projected national defense requirements, and the capacity of domestic industries to meet such requirements . . . See 19 U.S.C.
1862d. The report explains that projected national defense requirements include a viable American-owned automobile and automobile parts manufacturing industry because military vehicles rely on commercial R&D for important innovations and on domestic manufacturers for parts and production facilities. The report takes into consideration the threat of American-owned producers exiting the U.S. economy and how a reduction in domestic production impacts the ability to meet national defense requirements.
The first sentence further directs the Secretary to consider existing and anticipated availabilities of . . .
supplies and services essential to the national defense . . . See 19 U.S.C.
1862d. The report discusses the declining market shares of Americanowned automobile producers in the United States. The report considers that imports continue to displace automobiles produced by Americanowned firms in the United States, as well as automobile parts produced in the United States, and the resulting impact on R&D spending in the United States. In a time of national emergency where the United States might be dependent solely on resources within its own bordersincluding manufacturing, a skilled workforce, and R&Dit is essential to strengthen such capabilities in the United States so that they are 16 See also 50 U.S.C. 4502a7, in which Congress explicitly recognized much of the industrial capacity that is relied upon by the United States Government for military production and other national defense purposes is deeply and directly influenced by A the overall competitiveness of the industrial economy of the United States; and B the ability of industries in the United States, in general, to produce internationally competitive products and operate profitably while maintaining adequate research and development to preserve competitiveness with respect to military and civilian production . . .

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fully deployable when demanded for national security.17
Lastly, the first sentence directs the Secretary to consider, the requirements of growth of such industries and such supplies and services including the investment, exploration, and development necessary to assure such growth, and the importation of goods in terms of their quantities, availabilities, character, and use as those affect such industries and the capacity of the United States to meeting national security requirements. See 19 U.S.C.
1862d. The report details the interdependence between R&D in the automotive sector and U.S. national security.
The factors listed in the second sentence of Section 232d are also relevant for this investigation. Under the second sentence, the Secretary and the President are required to recognize the close relation of the economic welfare of the Nation to our national security, and shall take into consideration the impact of foreign competition on the economic welfare of individual domestic industries, and any substantial unemployment, decrease in revenues of government, loss of skills or investment, or other serious effects resulting from the displacement of any domestic products by excessive imports. The report takes into consideration the impact of excessive imports of automobiles and certain automobile parts on the American-owned automotive industry by reducing employment, weakening R&D, and causing a loss of vital skills and technological know-how in the workforce, all factors that must be considered when assessing threats to the national security from excessive imports. See 19 U.S.C. 1862d.
It is these factors that the report considers which have resulted in a decline in American-owned manufacturing needed to support the research and development of technologies that maintain Americas ability to cost-effectively project military power worldwide. This decline threatens the national security. The Secretary finds that this weakening of our internal economy, by a continued decline of the American-owned automobile and automobile parts manufacturing base and related R&D, may impair the national security. See 19 U.S.C. 1862d.
17 See also 50 U.S.C. 4502a8 recognizing that the inability of industries in the United States, especially smaller subcontractors and suppliers, to provide vital parts and components and other materials would impair the ability to sustain the Armed Forces of the United States in combat for longer than a short period.

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Thus, the Secretary determines that the products listed in Section VIII are being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security. See 19 U.S.C.
1862b3A.
III. Investigation Process A. Initiation of Investigation On May 23, 2018, Secretary of Commerce, Wilbur Ross initiated an investigation to determine the effect of imported automobiles and automobile parts on national security under Section 232 of the Trade Expansion Act of 1962, as amended 19 U.S.C. 1862.
Pursuant to Section 232b1B, the Department notified the U.S.
Department of Defense with a May 23, 2018 letter from Secretary Ross to the Secretary of Defense, James Mattis.18
On May 30, 2018, the Department published in the Federal Register a notice announcing the initiation of this investigation to determine the effect of imports of automobiles and automobile parts on the national security. The notice also announced the opening of the public comment period as well as a public hearing to be held on July 19 and July 20, 2018.19
B. Public Comments On May 30, 2018, the Department invited interested parties to submit written comments, opinions, data, information, or advice relevant to the criteria listed in Section 705.4 of the National Security Industrial Base Regulations 15 CFR 705.4 as they affect the requirements of national security, including the following:
a. The quantity and nature of imports of automobiles, including cars, SUVs, vans and light trucks, and automotive parts and other circumstances related to the importation of automobiles and automotive parts;
b. Domestic production needed for projected national defense requirements;
c. Domestic production and productive capacity needed for automobiles and automotive parts to meet projected national defense requirements;
d. The existing and anticipated availability of human resources, products, raw materials, 18 19 U.S.C. 1862b1B. See Appendix A:
Section 232 Investigation Notification Letter to Secretary of Defense James Mattis, May 23, 2018.
19 See Appendix B for Department of Commerce, Notice of Request for Public Comments and Public Hearing on Section 232 National Security Investigation of Imports of Automobiles, including Cars, SUVs, Vans and Light Trucks, and Automotive Parts, 83 FR 24,73624,737 May 30, 2018. Also included in Appendix B is the subsequent Department of Commerce Notice, Public Hearing on Section 232 National Security Investigation of Imports of Automobiles, Including Cars, SUVs, Vans and Light Trucks, and Automotive Parts; Change of Date for the Public Hearing, 83 FR 32,833 Jul. 16, 2018.

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