SPOTLIGHT NEWSLETTER

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

As a result of Presidential proclamations, significant additional duties are now being levied against imports of certain steel and aluminum products into the U.S. as of March 23, 2018.  

The subject steel products are being assessed additional ad valorem duties of 25 percent on top of any normal duties and any applicable antidumping/countervailing duties. The duties are assessed via the application of a secondary tariff classification (9903.80.01) on the Customs entry.  The following steel products are subject to the additional duties:

  • Ingots and other primary forms 
  • Semi-finished products
  • Flat-rolled products
  • Bars and rods
  • Certain angles, shapes, and sections
  • Wire
  • Rails, sleepers, and similar products
  • Tubing and Pipe

The associated HTS provisions for the above products are: subheadings 7206.10 through 7216.50; 7216.99 through 7301.10; 7302.10; 7302.40 through 7302.90; and 7304.10 through 7306.90.     

The subject aluminum products are being assessed additional ad valorem duties of 10 percent on top of any normal duties and any applicable antidumping/countervailing duties. The duties are assessed via the application of a secondary tariff classification (9903.85.01) on the Customs entry.  The following aluminum products are subject to the additional duties:

  • Unwrought aluminum  (HTS 7601)
  • Bars, rods, and profiles( HTS 7604)
  • Wire (HTS 7605)
  • Plate, sheet, strip, and foil (7606-7607)
  • Tubes and pipes & tube and pipe fittings (7608-7609)
  • Castings and forgings  (HTS 7616.99.5160 and 7616.99.5170)

These subject duties are applicable to goods of ALL countries unless specifically exempted. As of March 23, 2018, the following countries are exempted from the above duties until April 30, 2018:  Canada, Mexico, Australia, Argentina, South Korea, Brazil and member countries of the European Union (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom).

Goods of the above countries will become subject to the subject duties as of May 1, 2018 unless the President issues a further extension for some or all of the parties.

A process is being established to allow parties 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 of Commerce may issue a the tariff treatment of that article.  Only U.S. parties may file such petitions.   

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

  • 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; establishing proper credit/payment process with broker).
  • When it becomes available, apply for the exclusion of items from the additional duties if they meet the perquisites.
  • Confirm that any articles falling in the affected HTS provisions are correctly classified.

It is important to note that U.S. Customs will be monitoring these importations closely to watch for any changes that may be appear to be suspect.    In particular, they will be watching for-

  • Change in HTS classification to one outside scope of duties
  • Change in declared valuation from the historical norm
  • Change in country of origin to country that is excluded from scope of duties

Importers intending to make any such changes should review to ensure the validity and accuracy of the declared information. 

DHL Global Forwarding has fully prepared and has procedures in place to help ensure our customers are compliant in paying their proper duties.  We are continuing to monitor for new developments and will share new information as it becomes available. 

Our U.S. Customs Consulting Group can offer services to assist parties in association with the matter, including: HTS classification review, training & guidance, etc. Parties with questions or need for assistance may contact their DHL Global Forwarding representative or contact us