On March 2, 2023, two proclamations were published to the Federal Register announcing additional tariffs on imports into the United States of certain Russian products.
Proclamation 10522 imposes, pursuant to Section 232 of the Trade Expansion Act of 1962 (Section 232), 200 percent ad valorem tariffs on "aluminum articles" and "aluminum derivatives" that are products of Russia or are products that incorporate Russian aluminum.1 Specifically, the following products will be subject to a 200 percent ad valorem tariff:
- All imports of aluminum articles or aluminum derivatives that are a product of Russia with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on March 10, 2023.
- All imports of aluminum articles or aluminum derivatives where any amount of the primary aluminum used in the manufacture of the aluminum articles or aluminum derivatives is smelted in Russia, or the aluminum articles or aluminum derivatives are cast in Russia with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 10, 2023.
As of the date of publication of Proclamation 10522, "aluminum articles" includes products classified under HTSUS headings 7601, 7604, 7605, 7606, 7607, 7608, 7609, and subheading 7616.99.51. "Aluminum derivatives" includes products classified under six subheadings: 7614.10.50, 7614.90.20, 7614.90.40, 7614.90.50, 8708.10.30, and 8708.29.21. The HTSUS headings subject to the proclamation may be updated or further revised in the future.
The proclamation states that "importers shall provide to U.S. Customs and Border Protection (CBP) information necessary to identify the countries where the primary aluminum used in the manufacture of aluminum articles imports . . . and derivative aluminum articles . . . are smelted" and that "CBP shall implement the smelt and cast information requirements as soon as practicable." While the manner in which these new tariffs will be enforced is yet to be seen, it is possible that CBP will take a rigorous approach to supply chain tracing. The language of Proclamation 10522 appears to supersede country of origin and substantial transformation rules with respect to any products manufactured in third countries by targeting products in which any amount of Russian aluminum is incorporated. Proclamation 10522 does not refer to any de minimis levels of aluminum or other exceptions to this language. We will be looking out for any guidance CBP issues addressing the proclamation.
The issuance of Proclamation 10522 comes on the heels of a Court of Appeals for the Federal Circuit decision reversing a Court of International Trade opinion that held that a proclamation issued pursuant to Section 232 during the Trump Administration fell outside of the President's delegated authority and was thereby invalid.2 The issuance of Proclamation 10522 appears to indicate that the Biden Administration will continue to use Section 232 as a tool in its trade policy.
Proclamation 10523 establishes new duties of 35 percent or 70 percent on certain products pursuant to the Suspending Normal Trade Relations with Russia and Belarus Act.3 Specifically, the proclamation increases duties on Russian metals, minerals, and chemical products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 1, 2023. The annex attached to the proclamation includes the specific classifications that are impacted.
Footnotes
1. Adjusting Imports of Aluminum Into the United States, 88 Fed. Reg. 13,267 (Feb. 24, 2023).
2. Primesource Building Products, Inc. v. United States, No. 21-2066 (Fed. Cir. Feb. 7, 2023).
3. Increasing Duties on Certain Articles From the Russian Federation, 88 Fed. Reg. 13,277 (Feb. 24, 2023).
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