SPOTLIGHT NEWSLETTER

U.S. Imposes Significant Additional Duties on Steel & Aluminum

The President of the United States has issued proclamations which will result in the application of significant additional duties against imports of certain steel and aluminum products into the U.S.

STEEL:
On March 8, the President signed a proclamation instituting additional duties of 25 percent on certain steel products. The duties are effective for goods entered or withdrawn from warehouse on or after 12:01 a.m. March 23, 2018. HTSUS 9903.80.01 will be used as a secondary tariff classification to apply the additional duties.

Steel products under the following HTSUS headings will be subject to the additional duties:

  • 7206.10 through 7216.50
  • 7216.99 through 7301.10
  • 7302.10
  • 7302.40 through 7302.90
  • 7304.10 through 7306.90

Products under these HTSUS provisions include, but not limited to, steel plate, sheet, and strip; bars & rods; wire; tubing, etc.

Canada and Mexico origin goods are currently exempt from these additional tariffs at this time (continuance of exemption tied to the ongoing NAFTA renegotiations). The government also has the ability to exempt certain products that are not produced domestically in sufficient amount or of a satisfactory quality, and other products can be exempted based on specific national security considerations.

The proclamation may be viewed here

ALUMINUM:
On March 8, the President signed a proclamation instituting additional duties of 10 percent on certain aluminum products. The duties are effective for goods entered or withdrawn from warehouse on or after 12:01 a.m. March 23, 2018. HTSUS 9903.85.01 will be used as a secondary tariff classification to apply the additional duties.

Aluminum products under the following HTSUS headings will be subject to the additional duties:

  • 7601 (unwrought aluminum)
  • 7604 (aluminum bars, rods, and profiles)
  • 7605 (aluminum wire)
  • 7606-7607 (aluminum plate, sheet, strip, and foil)
  • 7608-7609 (aluminum tubes and pipes & tube and pipe fittings)
  • 7616.99.5160 and 7616.99.5170 (aluminum castings and forgings)

Canada and Mexico origin goods are currently exempt from these additional tariffs at this time (continuance of exemption tied to the ongoing NAFTA renegotiations). The government also has the ability to exempt certain products that are not produced domestically in sufficient amount or of a satisfactory quality, and other products can be exempted based on specific national security considerations.

By March 18, 2018, the Secretary of Commerce will issue the procedures to be followed to petition for a product to be exempted from the additional tariffs. If after petitioning and consultation with other government agencies it is determined that such steel or aluminum products are not produced in the U.S. in a sufficient and reasonably available amount, or of a satisfactory quality, the Secretary may issue a tariff treatment of that article.

The Presidential proclamations may be viewed here.

Importers of products that will be subject to the above additional duties should take steps to prepare, including:

  • Evaluate your immediate and potential duty exposure for the tariffs described above.
  • Ensure your Customs bond amount is adequate to cover the additional duty liability (U.S. Customs or your surety may mandate this to you).
  • Provide your Customs broker with clear instructions to ensure the compliant application of the additional duties on your Customs entries.
  • Make the necessary arrangements for your ability to pay the duties to Customs in association with your Customs entries (may involve setting up a direct ACH account with Customs or specific arrangements with your broker).
  • When it becomes available, apply for the exclusion of items from the additional duties if they meet the prerequisites.
  • Confirm that any articles falling in the affected HTS provisions are correctly classified.

If you have any questions on the above, please contact your DHL Global Forwarding representative or contact us.