Steel and Aluminum Products:
232 Duties, Exemptions, and Exclusion Order
Section 232 duties
On March 1, 2018, President Trump announced that section 232 duties would be levied on imported steel and aluminum imports. These are global in nature with exceptions taken for Canada and Mexico.
- Presidential Proclamation on Adjusting Imports of Steel into the United States
On March 17, BIS issued its interim rule for companies wishing to seek exemptions from the Order. The linked presentation provides further information on the exemption process. Companies wishing assistance in the process should feel free to contact the firm.
Meanwhile, there are rumors that further exemptions could soon be granted to countries such as the EU, South Korea, Australia, Argentina, and Brazil.
Potential for an Exclusion Order on China Steel Companies
on March 18, the ITC advised that it will contemplate the issuance of an Exclusion Order (this is distinct from the sec. 232 processes) against certain Chinese companies that failed to file responses on the issue of false country of origin allegations. The list of these companies (excerpted from the ITC's Decision) is as follows:
- Shandong Iron and Steel Group Co. Ltd. of Jinan City, China;
- Shandong Iron and Steel Co., Ltd. of Jinan City, China;
- Jigang Hong Kong Holdings Co., Ltd. of Hong Kong, China;
- Jinan Steel International Trade Co., Ltd. of Jinan City, China;
- Benxi Iron and Steel (Group) International Economic and Trading Co. Ltd. Benxi City, China;
- Benxi Steel (Group) Co. Ltd., both of Benxi City, China;
- Tianjin Tiangang Guanye Co., Ltd. of Tianjin, China;
- Wuxi Sunny Xin Rui Science and Technology Co., Ltd. of Wuxi Province, China;
- Taian JNC Industrial Co., Ltd. of Tai’an City, China;
- EQ Metal (Shanghai) Co., Ltd. of Shanghai, China;
- Kunshan Xinbei International Trade Co., Ltd. of Jiangsu, China;
- Tianjin Xinhai Trade Co., Ltd. of Tianjin, China;
- Tianjin Xinlianxin Steel Pipe Co., Ltd. of Tianjin, China;
- Tianjin Xinyue Industrial and Trade Co., Ltd. of Tianjin, China; and
- Xian Linkun Materials (Steel Pipe Supplies) Co., Ltd. of Xi’an City, China
The ITC's notice sets out a process for comments (due March 30) and responses (due April 6), after which the ITC will issue a decision.
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CURATED NEWS :
April 30, 2018: At the last moment, Trump extends AL and Steel exclusions for allies.
April 30, 2018: CSMS #18-000316: Quota announcement on S. Korean Steel Mills.
April 18, 2018: Sens. Wyden & Hatch level a pointed critique of the 232 exemption process.
April 12, 2018: ITC ends 337 investigation without exclusions on China steel companies (U.S. Steel didn't push for exclusions).
April 6, 2018: POTUS: Statement on China Trade War: directing USTR to look at additional tariffs and to plan for the protection of US industry (farmers).
April 6, 2018: CIT denies Severstal attempt to block sec 232 duties.
April 5, 2018: Reuters: China tariffs to go into effect Monday.
April 5, 2018: Reuters: China tariffs in response to sec. 232 tariffs to go into effect Monday.
April 5, 2018: CBP: CSMS #18-000258: Update: Section 232 and Immediate Transportation Entries
March 28, 2018: Severstal files suit to enjoin steel tariffs as unconstitutional; briefings due April 10.
March 27, 2017: Canada announces measures to avoid transshipment of metal products. (in keeping with its obligations under its exclusion from 232 duties)
March 22, 2018: CSMS #18-000240: Customs' Implementation of Sec. 232 Duties
March 22, 2018: China: Sec. 232 Retaliation List
March 21, 2018: Commerce: Announcement of Ross meeting with EU foreshadows a potential EU exemption. Discussions ongoing South Korea, Australia, Argentina. Brazil to join discussions.
March 21, 2018, Nakachi overview of the Steel/Al exemption process.
March 21, 2018: ITC: Decision to terminate 377 price fixing investigation on steel.
March 17, 2018: BIS: NPRN on Exclusion process for Steel and Aluminum products from section 232 duties.
March 2, 2018: Client Advisory: Gazing into the Crystal Ball for Steel & AL.
NPR: Article: U.S. Plan For Steel And Aluminum Tariffs Prompts Global Backlash
March 1, 2018: POTUS announces section 232 duties will be imposed 25% for steel products, and 10% for Aluminum products.