Industry News

South Korea Update on Imports of Steel and Aluminum Articles under Section 232

Information derived from U.S. Customs and Border Protection Cargo Systems Messaging Service:

 

These duty requirements are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on March 23, 2018.

Commodity:  Steel mill and aluminum articles, as specified in the Presidential Proclamations.
Please note that the Section 232 measures are based on the country of origin, not the country of export.

STEEL

May 1, 2018 through May 31, 2018:

All countries of origin except 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).

As of June 1, 2018:

All countries of origin except Argentina, Australia, Brazil, and South Korea.

Quota for Steel Imports from South Korea

A separate CSMS Message was issued with details on the quota on steel imports from South Korea.   There is now an absolute quota on those steel items from South Korea. Once the quota amount has been reached, import of those products will not be allowed until January 1, 2019. There are already a few quota items that have been filled.  For questions, please email consulting@scarbrough-intl.com

ALUMINUM

May 1, 2018 through May 31, 2018:

All countries of origin except Canada, Mexico, Argentina, Australia, 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).

Note: As of May 1, 2018, aluminum articles from South Korea are subject to the Section 232 import duties. Importers may receive a quota hold message for imports of such articles; however, a quota is not in effect for imports of aluminum from South Korea.

As of June 1, 2018:

All countries of origin except Argentina, Australia, and Brazil.

For both steel and aluminum, imports of United States origin are not covered by the Section 232 measures.


CLAIMING GSP

Although Brazil and Argentina are GSP countries, they are exempt from Section 232 per the Harmonized Tariff Schedule of the United States (HTSUS) Chapter 99, Subchapter III, U.S. Notes 16(a) and 19(a); therefore they may claim GSP.

FOREIGN TRADE ZONES

Any steel or aluminum article, except those eligible for admission under “domestic status” as defined in 19 CFR 146.43, subject to the Section 232 duties, that is admitted into U.S. foreign trade zones on or after 12:01 a.m. eastern daylight time on March 23, 2018, must be admitted as “privileged foreign status” as defined in 19 CFR 146.41, and will be subject upon entry for consumption to any ad valorem rates of duty related to the classification under the applicable HTSUS subheading.

Any steel or aluminum article, except those eligible for admission under “domestic status” as defined in 19 CFR 146.43, subject to the 232 duties, that was admitted into U.S. foreign trade zones under “privileged foreign status” as defined in 19 CFR 146.41, prior to 12:01 a.m. eastern daylight time on March 23, 2018, will likewise be subject upon entry for consumption to any ad valorem rates of duty related to the classification under applicable HTSUS subheadings imposed by the Proclamations.

Aluminum or steel articles shall not be subject upon entry for consumption to Section 232 duties, merely by reason of manufacture in a U.S. foreign trade zone. However, articles admitted to a U.S. foreign trade zone in “privileged foreign status,” shall retain that status consistent with 19 CFR 146.41(e).

The merchandise covered by the additional duties and quota may also be subject to antidumping and countervailing duties.

DRAWBACK

No drawback shall be available with respect to the Section 232 duties imposed on any aluminum or steel article.

FAQ

Also see Frequently Asked Questions at https://www.cbp.gov/trade/programs-administration/entry-summary/232-tariffs-aluminum-and-steel

Feel free to reach out to our team with any questions or email consulting@scarbrough-intl.com.

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