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Section 232 Tariffs on Aluminum and Steel

UPDATE: Submitting Section 232 Product Exclusions: 2018 Expired HTS

Related CSMS:  18-000240, 18-000249, 18-000257, 18-000258, 18-000296, 18-000317, 18-000352, 18-000372, 18-000377, 18-000378, 000412, 18-000477, 18-000624, 19-000252, 19-000257, 39633923

BACKGROUND

Duty on Imports of Steel and Aluminum Articles under Section 232 of the Trade Expansion Act of 1962

NEW On March 19, and September 11, 2018 and June 10, 2019, the Department of Commerce (DOC) published in the Federal Register (FR) the process for parties to submit requests for exclusions from Presidential Proclamations 9704 and 9705 on Adjusting Imports of Steel and Aluminum into the United States under section 232 of the Trade Expansion Act of 1962.  See 83 FR 12106, 83 FR 46026 and 84 FR 26751.


On May 19, 2019, the President issued two Proclamations adjusting Proclamations 9704 and 9705 after the United States announced an agreement with Canada and Mexico to remove the Section 232 tariffs for steel and aluminum imports from those countries


On May 16, 2019, the President modified proclamation 9705 to remove the higher tariff on steel imports from Turkey imposed by Proclamation 9772, and to instead impose a 25 percent ad valorem tariff on steel imports from Turkey, commensurate with the tariff imposed on such articles by the Section 232 remedy imported from most other countries.


On May 31, 2018, the President issued Proclamations on Adjusting Imports of Steel and Aluminum into the United States. These duty requirements are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on March 23, 2018.


On April 30, 2018, the President issued Proclamations 9739 and 9740 on Adjusting Imports of Steel and Aluminum into the United States.  See the Federal Register, 83 FR 20683 and 83 FR 20677, May 7, 2018. 


On March 22, 2018, the President issued Proclamations on Adjusting Imports of Steel and Aluminum into the United States. See the Federal Register, 83 FR 13355 and 83 FR 13361, March 28, 2018. 


On March 8, 2018, the President issued Proclamations 9704 and 9705 on Adjusting Imports of Steel and Aluminum into the United States, under Section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862), providing for additional import duties for steel mill and aluminum articles, effective March 23, 2018.  See the Federal Register, 83 FR 11619 and 83 FR 11625, March 15, 2018. 


GUIDANCE

UPDATED:

Once the Importer of Record (IOR) receives an approved product exclusion from the DOC, please provide that company name, address and importer of record number, and the associated product exclusion number, for the IOR listed in the approved exclusion, to U.S. Customs and Border Protection (CBP) at Traderemedy@cbp.dhs.gov.  Do not submit any product exclusion information to CBP until DOC approves the product exclusion.

CBP needs this information in order to activate the approved product exclusion number in the Automated Commercial Environment (ACE).  This information must be provided to CBP before the filer uses the exclusion number on any entries filed with CBP.  For quota exclusions, 9903.80.60 with the approved chapter 1-97 Harmonized Tariff Schedule of the United States (HTSUS) for steel articles and 9903.85.11 for aluminum articles must be associated with the product exclusion number before any quota exemption can be processed, and goods subject to the quota exemption can be released.

CBP activates approved product exclusion numbers in ACE on a weekly basis.  CBP, in most circumstances, will activate by close of business Thursday of every week any product exclusion numbers with corresponding importer information submitted by close of business Monday to Traderemedy@cbp.dhs.gov.

Instructions for submitting entries to CBP of Section 232 steel and aluminum products granted through regulations.gov or the 232 Exclusion portal by DOC from the Presidential Proclamations are as follows:

Exclusion Submissions: originating from regulations.gov

Importers and filers importing products granted an exclusion should submit the product exclusion number based on the last six digits of the product exclusion docket number at Regulations.gov.  Filers should refer to the Importer’s Additional Declaration Detail (Input 54-Record) of the CBP and Trade Automated Interface Requirements (CATAIR) Manual for further guidance.  The product exclusion number should be submitted in the Importer Additional Declaration Field (54 record) of the entry summary data, based on the following format:

For excluded steel mill articles = STLNNNNNN

For excluded aluminum articles = ALUNNNNNN

NNNNNN represent the last six digits of the Regulations.gov docket number; do not include spaces or special characters, such as hyphens.

Example:  If a steel exclusion is granted under product exclusion docket number BIS-2018-0009-9002, the importer/filer should submit the exclusion number STL099002 (i.e. STL plus the last six digits of the docket number).

Exclusions Submissions: originating from the 232 Exclusion Portal

Importers and filers importing products granted an exclusion should submit the product exclusion number based on the exclusion Request ID using the 232 Exclusion Portal at https://232app.azurewebsites.net/steelalum.   Filers should refer to the CATAIR for further guidance.  The product exclusion number should be submitted in the Importer Additional Declaration Field (54 record) of the entry summary data, based on the following format:

For excluded steel mill articles = SPRNNNNNN

For excluded aluminum articles = APRNNNNNN

NNNNNN represent the last six digits of the Exclusion Request ID obtained from the DOC/BIS 232 Exclusions Portal.

Example: The obtained Exclusion Request ID should be prefaced with leading zeros (‘0’) not to exceed a numeral length of six. e.g., ‘165’ becomes ‘SPR000165’

Only products from importer(s) designated in the product exclusion approved by the DOC are eligible for the exclusion from the Section 232 measures.

Steel importers are reminded to submit mill certificates with their import data as required by 19 CFR 141.89.

For Duty Exclusions: Filers are not to submit the corresponding Chapter 99 HTSUS number for the Section 232 duties when the product exclusion number is submitted.

For Quota Exclusions:  Filers are to submit the applicable Chapter 99 HTSUS number i.e. 99038060 for steel articles and 99038511 for aluminum articles.  Do NOT submit 99038061, which expired on March 31, 2019 and is NO LONGER applicable.


All imports of steel articles covered by Heading 9903.80.01, in subchapter III of Chapter 99 of the HTSUS, shall be subject to an additional 25 percent ad valorem rate of duty with respect to goods entered for consumption, or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time on May 21, 2019, from all countries (including Turkey) except Argentina, Australia, Brazil, Canada, Mexico and South Korea.

 

Commodity

 

Steel mill and aluminum articles, as specified in the Presidential Proclamations.

 

Countries Covered by Section 232 Import Duties

 

Please note that the Section 232 measures are based on the country of origin, not the country of export.

 

Steel

 
As of May 20, 2019:  All countries of origin except Argentina, Australia, Brazil, Canada, Mexico and South Korea 

Aluminum

As of May 20, 2019:  All countries of origin except Argentina, Australia, Canada and Mexico.

 

Countries Covered by Section 232 Absolute Quotas

Steel

As of June 1, 2018:  Argentina, Brazil, and South Korea.

Aluminum

As of June 1, 2018:  Argentina.

For both steel and aluminum, imports of United States origin are not covered by the Section 232 measures.

Filing Instructions

Section 232 Import Duties

Use non-quota entry type codes.

UPDATE:  As of June 1, 2018, for all imports of aluminum from South Korea, importers should also use non-quota entry type codes.

Steel Products

In addition to reporting the regular Chapters 72 and 73 of the Harmonized Tariff Schedule (HTS) classification for the imported merchandise, importers shall report the following HTS classification for imported merchandise subject to the additional duty:  9903.80.01 (25 percent ad valorem additional duty for steel mill products).

Steel articles covered by the Section 232 remedy that are the product of the Republic of Turkey (Turkey) were subject to 50% ad valorem duty rate from August 13, 2018, through May 20, 2019, under HTSUS 9903.80.02.  

Steel Products from Turkey

In addition to reporting the regular Chapter 72 of the Harmonized Tariff Schedule of the United States (HTSUS) classification for the imported merchandise, importers shall report the following HTSUS classification for imported merchandise subject to the additional duty:

  • Goods entered for consumption, or withdrawn from warehouse for consumption before 12:01 a.m. eastern daylight time on May 21, 2019, shall be filed using the 9903.80.02 special provision for 50% ad valorem duty rate for products of iron and steel from Turkey.
  • Goods entered for consumption, or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time on May 21, 2019, shall be filed using the 9903.80.01 special provision for 25% ad valorem duty rate for products of iron and steel from all countries (including Turkey) except Argentina, Australia, Brazil, Canada, Mexico and South Korea.

Aluminum Products

In addition to reporting the regular Chapter 76 of the HTS classification for the imported merchandise, importers shall report the following HTS classification for imported merchandise subject to the additional duty:

9903.85.01 (10 percent ad valorem additional duty for aluminum products)

Section 232 Absolute Quota

Use quota entry type codes (entry types 02, 06, 07, 12, 23, 32, 38, or 52).

For further guidance, see CBP quota bulletins at /trade/quota/bulletins

Generalized System of Preferences (GSP) and African Growth and Opportunity Act (AGOA ) 

GSP and AGOA-eligible goods that are subject to Section 232 duties or quotas may not receive GSP or AGOA duty preference in accordance with 19 USC 2463(b)(2).

On imports subject to Section 232 duties or quotas (including imports from Argentina and Brazil), in addition to any applicable Section 232 duties, importers should pay the normal trade relations (column 1) duty rates and not submit the GSP Special Program Indicator (SPI) “A” or the AGOA SPI “D”.

Other Trade Preference Programs and Free Trade Agreements

Trade preference may be claimed for all preference programs with the exception of GSP and AGOA, as stated above. Importers making a trade preference claim under a program other than GSP or AGOA may continue to receive the preferential duty rate and any MPF exemption that may apply in accordance with 19 CFR 24.23(c). Section 232 duties must be paid on imports subject to Section 232 even if trade preferences apply.

Additional Information

Chapter 98

Imports subject to Section 232 duties imported under subheading 9802.00.60 shall be assessed Section 232 duties based upon the full value of the imported article.

Imports of U.S. origin are not subject to Section 232 duties.

Foreign Trade Zones

NEW Any steel articles imported from Turkey that were admitted into a United States foreign trade zone under “privileged foreign status” as defined in 19 CFR 146.41, prior to 12:01 a.m. eastern daylight time on May 21, 2019, shall be subject upon entry for consumption on or after such time and date to the additional 25 percent additional ad valorem rate of duty in heading 9903.80.01 in subchapter III of chapter 99 of the HTSUS.

Any steel or aluminum article, except those eligible for admission under “domestic status” as defined in 19 CFR 146.43, subject to the Section 232 duties, that is admitted into U.S. foreign trade zones on or after 12:01 a.m. eastern daylight time on March 23, 2018, must be admitted as “privileged foreign status” as defined in 19 CFR 146.41, and will be subject upon entry for consumption to any ad valorem rates of duty related to the classification under the applicable Harmonized Tariff Schedule (HTS) subheading.

Any steel or aluminum article, except those eligible for admission under “domestic status” as defined in 19 CFR 146.43, subject to the 232 duties, that was admitted into U.S. foreign trade zones under "privileged foreign status" as defined in 19 CFR 146.41, prior to 12:01 a.m. eastern daylight time on March 23, 2018, will likewise be subject upon entry for consumption to any ad valorem rates of duty related to the classification under applicable Harmonized Tariff Schedule (HTS) subheadings imposed by the Proclamations.

Aluminum or steel articles shall not be subject upon entry for consumption to Section 232 duties, merely by reason of manufacture in a U.S. foreign trade zone. However, articles admitted to a U.S. foreign trade zone in “privileged foreign status,” shall retain that status consistent with 19 CFR 146.41(e).

The merchandise covered by the additional duties and quota may also be subject to antidumping and countervailing duties.

Drawback

No drawback shall be available with respect to the Section 232 duties imposed on any aluminum or steel article.

Duty Exclusions

Duty exclusions granted by the DOC are retroactive on imports to the date the request for exclusion was accepted (date received) by the DOC.  See Presidential Proclamations 9776 and 9777, August 29, 2018.

To request an administrative refund for previous imports of duty-excluded products granted by DOC, importers may file a Post Summary Correction (PSC) and provide the product exclusion number in the Importer Additional Declaration Field.  If the entry has already liquidated, importers may protest the liquidation.

Once products are excluded from the Section 232 measures, importers may claim Generalized System of Preferences (GSP) or African Growth and Opportunity Act (AGOA) duty preferences on GSP and AGOA-eligible goods.  If importers did not receive GSP or AGOA duty preferences on previous imports, and those imports are now covered by a retroactive duty exclusion, importers may request a refund of the duties subject to GSP or AGOA preferences through a PSC.

Importers, Filers, and Brokers can locate additional information about submitting PSCs, in Section 11 of the ACE Entry Summary Business Rules and Process Document at https://www.cbp.gov/document/guides/ace-entry-summary-business-process.

For more information, please refer to the March 19 and September 11, 2018 and June 10, 2019 FR notices on requesting product exclusions.  Questions related to Section 232 entry filing requirements should be emailed to traderemedy@cbp.dhs.gov.  For questions related to quota product exclusions filing requirements, email the Quota and Agriculture Branch, HQQuota@cbp.dhs.gov

Questions from the importing community concerning ACE entry rejections involving product exclusion numbers should be referred to their CBP Client Representative.

For Further Information

Section 232

For more information, please refer to the Presidential Proclamations on Adjusting Imports of Steel and Aluminum into the United States, Federal Register, 83 FR 11619 and 83 FR 11625 (March 15, 2018); 83 FR 13355 and 83 FR 13361 (March 28, 2018); 83 FR 20683 and 83 FR 20677 (May 7, 2018); 83 FR 25849 and 83 FR 25857 (June 5, 2018); and the August 10, 2018 Proclamations on Adjusting Imports of Steel into the United States.

Section 301

Also for further information, please refer to the USTR’s Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation, 83 FR 28710 (June 20, 2018); and the August 16, 2018 Notice of Action Pursuant to Section 301, 83 FR 40823 (August 16, 2018).

Questions related to Sections 201, 232, and 301 entry filing requirements should be emailed to traderemedy@cbp.dhs.gov. Questions from the importing community concerning ACE rejections should be referred to their Client Representative.

Last modified: 
September 3, 2019