Proclamation 4655—Imports of Petroleum and Petroleum Products

The Secretary of Energy has advised me that the continuation of shortages in international petroleum and petroleum product supplies has resulted in escalating world oil prices which impact directly on the United States economy. This situation requires that imports of crude oil and petroleum products .be adjusted by temporarily suspending tariffs and the system of license fees which have been imposed since 1973 under Proclamation No. 3279, as amended. In light of the current market shortages and price conditions the continued imposition of import fees and tariffs, at least for the near term, do not serve the purposes of the Mandatory Oil Import Program and are detrimental to the economy. As a consequence, for the period that the shortages persist, continued imposition of the tariffs and import fees has become unnecessary and burdensome to the American public.

Therefore, the Secretary of Energy has recommended that I temporarily suspend imposition of the import fees and tariffs. Suspension of the fees and tariffs will serve to alleviate some of the world oil price impacts on the American consumer and should also improve access to certain refined products which are threatened to be in short supply. I agree with the changes proposed by the Secretary and they are consistent with the purposes of Proclamation No. 3279, as amended. The temporary suspension of fees and tariffs does not alter the long term purposes or benefits of the import control program established pursuant to Proclamation No. ,3279, as amended. This action will adjust the imports of petroleum and petroleum product supplies so that they are not imported in such quantities or under such circumstances as to threaten to impair the national security.

Now, Therefore, I, Jimmy Carter, President of the United States of America, by the authority vested in me by the Constitution and the laws of the United States, including Section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862), do hereby proclaim that:

SECTION 1. Section 3(a) (1) of Proclamation No. 3279, as amended, is further amended in subparagraphs (i) and (ii), and by the addition of a subparagraph (viii), to read as follows:

"(i) with respect to imports of crude oil (other than that imported by the Department of Energy, or by another person or agency of the Federal Government acting on behalf of the Department, for the Strategic Petroleum Reserve Program) and natural gas products over and above the levels of imports established in Section 2 of the Proclamation, such fees shall be $0.00 per barrel for the period April 1, 1979 through June 30, 1979. Effective July 1, 1979 such fees shall be $0.21 per barrel unless the Secretary makes the finding prescribed in paragraph 3(a)(1)(viii) in which case the fees shall remain at the $0.00 level;

"(ii) with respect to imports of motor gasoline, unfinished oils, and all other finished products (except ethane, propane, butanes, asphalt and finished products imported by the Department of Energy, or another person or agency of the Federal Government acting on behalf of the Department of Energy, for the Strategic Petroleum Reserve Program), over and above the levels of imports established in Section 2 of this Proclamation, such fees shall be $0.00 per barrel for the period April 1, 1979 through June 30, 1979. Effective July 1, 1979, such fees shall be $0.63 per barrel unless the Secretary makes the finding prescribed in paragraph 3(a) (1) (viii) in which case the fees shall remain at the $0.00 level;

"(viii) with respect to the fees imposed pursuant to paragraphs 3 (a) (1) (i)-(ii), the Secretary may defer the imposition of either the $0.21 or $0.63 fee for a period, not to exceed six months, with respect to any type of crude oil, unfinished oil, or finished product for which the Secretary finds that imposition of the fees would not be in accordance with the purposes of this Proclamation. Reimposition of the fees may be deferred for one additional period, not to exceed six months, upon a similar finding.".

SEC. 2. Section 4 of Proclamation No. 3279, as amended, is amended by the addition of subsections (d) and (e) to read as follows:

"(d) Such regulations may provide for allocation periods of other than one year's duration; provided, that the applicable average barrel per day level of imports not subject to the payment of fees provided in Section 2 of this Proclamation is not exceeded on the average in any such period established.

"(e) Notwithstanding the levels established in Section 2 of this Proclamation, such regulations may provide for the suspension of the issuance of licenses not subject to the payment of fees with respect to any type of crude oil, unfinished oil, or finished product for any period in which a fee of $0.00, as provided in Section 3 of this Proclamation, is in effect.".

SEC. 3. Effective as of April 1, 1979, tariffs upon imports of petroleum and petroleum products listed in Schedule 4, Part 10?"Petroleum, natural gas and products derived therefrom," and tariffs upon imports of hydrocarbons listed in Schedule 4, Part 2?"Chemical Elements, Inorganic and Organic Compounds, and Mixtures", of the Tariff Schedules of the United States shall be and are suspended until July 1, 1979, at which time the tariffs shall be reimposed except with respect to any item in Schedule 4, Part 2 or Part 10, for which the Secretary of Energy finds that the reimposition of a tariff would not be in accordance with the purposes of Proclamation No. 3279, as amended. Upon such a finding, the Secretary may defer imposition of the tariff for a period not to exceed six months and may defer imposition of the tariff for one additional period, not to exceed six months, upon a similar finding.

In Witness Whereof, I have hereunto set my hand this sixth day of April, in the year of our Lord nineteen hundred seventy-nine, and of the Independence of the United States of America the two hundred and third.

JIMMY CARTER