Tariff Exclusion Process to be Revised

Additional revisions to the process for requesting exclusions from the Section 232 tariffs and quantitative limitations on imports of aluminum and steel would be made under a new proposed rule from the Bureau of Industry and Security. Comments on the proposed changes are due no later than Oct. 12.

The Section 232 tariffs were first imposed in March 2018, but BIS may grant exclusions if it determines that a given steel or aluminum article (1) is not produced in the U.S. in a sufficient and reasonably available amount or of a satisfactory quality or (2) should be excluded based on specific national security considerations.” The U.S. subsequently replaced the tariffs with tariff-rate quotas for imports of covered steel and aluminum from specific countries.

BIS states that it is now proposing the following primary changes intended to create a more transparent, fair, and efficient tariff exclusion process.

– changing the criteria generally used for determining generally accepted exclusions by focusing on the substance of objections submitted rather than whether any objection has been submitted or not

– introducing a general denied exclusions process to limit further exclusions on products that have consistently been found to be manufactured in the U.S. (similar to GAEs, GDEs would be implemented based on the volume and substance of objections submitted)

– modifying the existing certification language on the exclusion request form so that, before filing a request, requesters would also need to certify (and provide evidence – BIS is seeking input on the nature of such evidence) that they have first made reasonable efforts to source their product from the U.S. and, if unsuccessful, from a country with which the U.S. has arrived at a satisfactory alternative means to address national security concerns (currently Argentina, Australia, Brazil, Canada, the European Union, Japan, Mexico, South Korea, and the United Kingdom)

– proposing similar certification language on (and evidentiary requirements for) the objection form to further ensure that objectors can supply comparable quality and quantity steel or aluminum and make it immediately available to requestors