Section 232 Expanded to Include Derivative Steel and Aluminum Goods

On Friday, January 24, 2020, a presidential proclamation on derivative steel and aluminum was issued which extends the additional 25% tariff on steel and the additional 10% tariff on aluminum products to include derivative products that have seen a surge in imports.

The Section 232 tariffs on steel and aluminum products that went into effect on March 23, 2018, covered the following Harmonized Tariff Schedule (HTS) numbers:

• Steel HTS #s: 7206.10 through 7216.50; 7216.99 through 7301.10; 7302.40 through 7302.90; and 7304.10 through 7306.90
• Aluminum HTS #s: 7601, 7604, 7605, 7606, 7607, 7608, 7609, 7616.99.5160 and 7616.99.5170

The proclamation notes that, while imports of these goods have declined since the tariffs were imposed, imports of certain derivatives of these articles have significantly increased.  The Department of Commerce (DOC) believes this increase is part of an effort to circumvent the tariffs.

In response, the administration is expanding the scope of the tariffs to include the following derivative goods:

• Derivative steel products – 25% HTS 9903.80.03:
  • Nails, tacks (other than thumb tacks), drawing pins, corrugated nails, staples (other than those of heading 8305) (subheading 7317.00.30 and statistical reporting numbers 7317.00.5503, 7317.00.5505, 7317.00.5507, 7317.00.5560, 7317.00.5580, 7317.00.6560)
  • Steel bumper stampings (8708.10.30)
  • Steel body stampings (8708.29.21)
• Derivative aluminum products – 10% HTS 9903.85.03:
  • Stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and with steel core, not electrically insulated, fitted with fittings or made up into articles (7614.10.50)
  • Stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and not with steel core, not electrically insulated, comprising electrical conductors, not fitted with fittings or made up into articles (7614.90.20)
  • Stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and not with steel core, not electrically insulated and not comprising electrical conductors, not fitted with fittings or made up into articles (7614.90.40)
  • Stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and not with steel core, not electrically insulated, fitted with fittings or made up into articles. (7614.90.50)
  • Aluminum bumper stampings (8708.10.30)
  • Aluminum body stampings (8708.29.21)

These new tariffs will go into effect for all goods entered for consumption or withdrawn from warehouse for consumption starting 12:01 a.m. EST on February 8, 2020.

Exemptions include:

• Derivative aluminum products in Annex I from Argentina, Australia, Canada, and Mexico
• Derivative steel products in Annex II from Argentina, Australia, Brazil, Canada, Mexico, and South Korea

The DOC has been authorized to establish an exclusion process for affected parties located in the U.S. which addresses the following:

1. Any derivative article determined not to be produced in the U.S. in sufficient and reasonably available amounts or of a satisfactory quality
2. Articles involving specific national security considerations

Any exclusions granted will be retroactive to the date the request was accepted by the DOC.

For more information, please contact your local Noatum Logistics (formerly MIQ Logistics) representative.