On July 10, 2024, President Biden issued two proclamations on adjusting imports of steel and aluminum into the United States. The proclamations increase the section 232 duty rate for both products and adjust the requirements for avoiding section 232 duties.
Steel Proclamation
The steel proclamation implements a melt and pour requirement for imports of steel articles that are products of Mexico. It also increases the section 232 duty rate for imports of steel articles and derivative steel articles that are products of Mexico that are melted and poured in a country other than Mexico, Canada, or the United States. If the country of melt and pour is any country other than the U.S., Mexico, or Canada, then the steel articles are subject to an additional 25% duty.
In making this adjustment, the Administration stated that domestic steel producers' capacity utilization remains below the target 80 percent capacity utilization recommended in the Secretary of Commerce's report of January 11, 2018. Additionally, imports of steel articles from Mexico have increased significantly. In the opinion of the Administration and the Secretary of Commerce, these developments indicate the need for further action under section 232.
Aluminum Proclamation
The aluminum proclamation implemented a country of smelt and country of most recent cast requirement for imports of aluminum articles that are products of Mexico. It also increased the section 232 duty rate for imports of aluminum articles and derivative aluminum articles that are products of Mexico containing aluminum for which the reported primary country of smelt, secondary country of smelt, or country of most recent cast is China, Russia, Belarus, or Iran.
To avoid 232 tariffs, aluminum articles and derivative aluminum articles that are products of Mexico must be accompanied by a certificate of analysis proving the primary country of smelt, secondary country of smelt, or country of most recent cast.
As it did in the steel proclamation, the Administration stated that domestic aluminum producers' capacity utilization remains below the target 80 percent capacity utilization recommended in the Secretary's report of January 19, 2018, and imports of aluminum articles from Mexico have increased significantly.
The proclamation stated that these measures will provide an effective, long-term alternative means to address both aluminum article imports that threaten national security and excess aluminum capacity and production.
CBP Guidance on Aluminum
On September 4, 2024, CBP issued guidance to assist importers impacted by the additional duties on aluminum. The guidance provides specific HTSUS headings importers should declare:
- Heading 9903.85.71 for aluminum articles for which the primary country of smelt, secondary country of smelt, or country of most recent cast, is China, Russia, Belarus or Iran.
- Heading 9903.85.72 for derivative aluminum articles for which the primary country of smelt, secondary country of smelt, or country of most recent cast, is China, Russia, Belarus or Iran.
- Heading 9903.85.67 for aluminum articles when any amount of primary aluminum used in the manufacture is smelted in Russia, or when the aluminum articles are cast in Russia.
- Heading 9903.85.68 for derivative aluminum articles when any amount of primary aluminum used in the manufacture is smelted in Russia, or when the derivative aluminum articles are cast in Russia.
The guidance also specifies that filers may only report "N/A" for the primary and secondary country of smelt if the product contains only secondary aluminum and no primary aluminum.
Looking Ahead
The proclamations state that the United States will monitor the effectiveness of these measures and may reconsider the policies as appropriate.
Importers should revisit their policies and procedures governing steel and aluminum imports in light of these proclamations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.