Over the past year, there has been a significant amount of activity and conversation around additional tariffs being required on a range of products from various countries. These are sometimes referred to as “trade remedy” measures or tariffs. The additional tariffs are also being used as way to address the “import injury” against the U.S. domestic markets, depending on the circumstances.
As an importer, it is critical that your company understands the ever evolving landscape, in relation to these additional tariffs, to ensure the health and compliance of your supply chain. Below, you will find useful information related to the Section 232 Tariffs on Steel and Aluminum.
What are “Section 232 Tariffs?”
Section 232 of the Trade Expansion Act of 1962 authorizes the U.S. President to adjust the import of products that the Department of Commerce finds to be imported into the United States in such quantities or circumstances that threaten to impair U.S. national security.
On March 22, 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. This has evolved over time in relation to what products from what countries are affected by the proclamation; however, the current situation is as follows:
- Steel: As of June 1, 2018, all countries of origin are affected, with the exceptions of Argentina, Australia, Brazil, and South Korea.
- Aluminum: As of June 1, 2018, all countries of origin are affected, with the exceptions of Argentina and Australia.
- There are quotas in place for some of the countries that are not applicable for inclusion in Section 232.
Products Affected: Lesser-manufactured iron/steel and aluminum products (e.g. ingots and sections).
HTSUS subheadings 7206.10 through 7216.50, 7216.99 through 7301.10, 7302.10, 7302.40 through 7302.90, and 7304.10 through 7306.90, including any subsequent revisions to these HTSUS classifications.
(Heading 7601); (a) aluminum articles, (Heading 7604); (b) aluminum bars, rods, and profiles, (Heading 7605); (c) aluminum wire, (Headings 7606 and 7607); (d) aluminum plate, sheet, strip, and foil (flat rolled products), (Headings 7608 and 7609); (e) aluminum tubes and pipes and tube and pipe fitting (f) aluminum castings and forgings, and (HTSUS 7616.99.5160 and 7616.99.5170), including any subsequent revisions to these HTSUS classifications.
As an importer, what can I do to be compliant?
- Verify your products are classified correctly with the proper HTS codes.
- Confirm that your suppliers have accurate commercial invoice descriptions of the products.
- Verify the country of origins of your products.
- Ensure your Customs broker is submitting accurate entries to U.S. Customs.
- Use your ACE Portal Account to run reports and verify your overall Customs entry accuracy.
What are my options to mitigate the impact of the additional Tariff?
- Review the accuracy of the HTS codes being used to classify your products.
- Consider sourcing.
- Change production steps and locations to affect the products’ HTS codes and countries of origin.
- Submit an exclusion request to the Department of Commerce.