Industry News

U.S. and E.U. Announce Section 232 Tariff Relief

By November 2, 2021 No Comments

Effective January 1, 2022, the U.S. will replace existing Section 232 tariffs on steel and aluminum products from the E.U. Currently all importations of certain steel products are assessed a 25% additional tariff, while the rate for aluminum products is 10%. The existing tariffs will be replaced by a tariff rate quota (TRQ), which will allow for importations at historical levels before the application of the additional tariffs.

The aggregate annual TRQ for fifty-four categories of steel products is set at 3.3 million metric tons (MMT) and the basis for the E.U. members’ steel exports set at the 2015 – 2017 import levels. The steel products must be melted and poured in the E.U. to be eligible, and the importer must be able to provide relevant documentation substantiating compliance with this requirement. Steel products entered above quota will be subject to the 25% Section 232 tariffs unless covered by an exclusion. The U.S. is obligated to evaluate the TRQ every three months and to enter consultations with the E.U. to address any under-utilization of the quota. The current exclusion process will continue and excluded EU steel products will not count against the TRQ. Exclusions for EU products granted in 2021 will be extended to December 2023.

The aggregated annual TRQ for aluminum is set at eighteen thousand metric tons (TMT) for unwrought aluminum (two product categories) and 366 TMT for wrought or semi-finished aluminum products in fourteen categories.  The basis for allocations for the E.U. member will be in-line with the importations in the 2018/2019 historical period except for aluminum foil entered under HTS 7607, which is based on importations in 2021. Importers will still be required to provide a Certificate of Analysis for each aluminum product and the established exclusion process will continue. Products entered above the established quota will be subject to the 10% Section 232 duty rate unless excluded.

The importation derivatives of E.U. steel and aluminum will no longer be subject to the 232 tariffs.

The E.U. will suspend their retaliatory tariffs on U.S. goods and will not implement tariff increases, which were scheduled to take effect on December 1. The two sides also stated their intention to negotiate a global arrangement to discourage trade in high-carbon steel and aluminum that had contributed to excess global capacity and ensure their domestic policies support the lowering of carbon intensity in these industries. In a joint statement they said this arrangement “will be open to any interested country that shares our commitment to achieving the goals or restoring market orientation and reducing trade in carbon intensive steel and aluminum products.”  The U.S. is continuing to speak with Japan and the U.K. on these.

Best Regards,

Sam McClure, LCB

Director of Compliance & Customs Services

 

Need a refresher on tariff rounds and exclusions?

CVI Exclusion Guide 2020

CVI has a free, complete guide to EVERYTHING you need to know for tariff rounds and exclusions, including:

  • HTS Code
  • Publish Dates
  • Exclusion provision number per set list and round
  • Effective & Extended Expiration Dates

The CVI Exclusion Guide 2020 provides you with a link to original USTR exclusion announcements with a breakdown of each excluded product.

Please let us know if you have any questions. We will be regularly updating this document via our website. Check it out here!

 

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Meet one of CVI’s Customs Brokerage & Compliance experts, Sam McClure:

Sam serves as Director, Compliance and Customs Services for CVI. He serves as CVI’s corporate compliance officer and is responsible for overseeing all aspects of our Customs related services, including growth.

Sam started his career in 1977 with Waters Shipping Company in Charlotte, NC. He began as a document runner, soon becoming a leader in operations and customer service for the branch. Sam, along with Linda Masten, founded Central Carolina Shipping Inc. in 1983 as an independent Customs Brokerage firm where he served as Vice President for 26 years. Sam and Linda grew Central Carolina into a successful and highly respected member of the Carolinas trade community. When Charlotte opened their local chapter of the IFFCBA Sam was part of the organizing group and he headed the Customs committee for several years. Sam obtained his Customs Brokers License in 1984 and remained with Central Carolina until the company was acquired by CVI in 2009.

At CVI, Sam has held several positions in both the operations and sales departments. As an expert in U.S. Customs regulations, Sam is often called upon on to provide guidance to importers on Customs compliance issues. He makes regular presentations on matters related to importation and broader regulatory compliance.

– Sam McClure, LCB, Director of Compliance & Customs Services, CVI
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