PURPOSE AND PROCEDURE: A Section 232 investigation is conducted...

1. PURPOSE AND PROCEDURE:

A Section 232 investigation is conducted under the authority of the Trade Expansion Act
of 1962, as amended. The purpose of the investigation is to determine the effect of
imports on the national security. Investigations may be initiated based on an application
from an interested party, a request from the head of any department or agency, or may be
self-initiated by the Secretary of Commerce.

By law, the Secretary of Commerce has 270 days to present the Department's findings
and recommendations to the President. While the statute requires that Commerce consult
with the Department of Defense regarding the methodological and policy questions that
arise during a Section 232 investigation, other government agencies (such as the
Departments of State and Labor) also participate in Section 232 interagency working
groups based upon their expertise and/or interest.

During the course of an investigation, Commerce may provide the public with an
opportunity to comment and present information and advice relevant to the investigation,
usually through a notice in the Federal Register. Additional information is gathered from
such sources as: surveys of producers, importers and endusers; on-the-record meetings
with interested parties; site visits; and a review of public literature.

If the Secretary finds that imports threaten to impair the national security, the President
has 90 days to determine whether he agrees with the Secretary's findings, and to
determine whether to use his statutory authority to "adjust imports."

1. CRITICAL FACTORS:

Among the most important criteria considered are:

• requirements of the defense and essential civilian sectors;
• growth requirements of domestic industries to meet national defense requirements;
• quantity, quality, and availability of imports;
• impact of foreign competition on the economic welfare of the essential domestic industry;
• the displacement of any domestic products causing substantial unemployment, decrease in the revenues of government, loss of investment or specialized skills and productive capacity; and
• other factors relevant to the unique circumstances of the specific case.

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