Increased Tariffs, Quotas on Vanadium Get More Time for Comments

The Bureau of Industry and Security has reopened through Oct. 9 the period for public comments on a Section 232 investigation into whether U.S. national security is being harmed by imports of vanadium.

Vanadium is a metal used in the production of metal alloys and as a catalyst for chemicals in the aerospace, defense, energy, and infrastructure sectors, including aircraft, jet engines, ballistic missiles, energy storage, bridges, buildings, and pipelines. It is designated as a strategic and critical mineral but domestic demand is supplied entirely through imports. The two companies that petitioned for this investigation asserted that domestic industry is adversely impacted by unfairly traded low-priced imports, limited export markets due to value-added tax regimes in other vanadium-producing countries, and the distortionary effect of Chinese and Russian industrial policies. 

If BIS (which must consult with the Department of Defense) finds that excessive imports of vanadium are a threat to U.S. national security, and the president concurs, the president has the authority to adjust imports, including through the use of tariffs and quotas. Any such actions would be imposed within 15 days of the president’s determination to act.

For more information on this section 232 investigation and how it may affect your business, please contact Kristen Smith at (202) 730-4965.


Export Privileges Suspended for Shipments to Lebanon

BIS has issued an order suspending the export privileges of a U.S. man for seven years and revoking any BIS-issued licenses in which he had an interest. This man was convicted of knowingly and willfully conspiring to export guns and gun parts designated as defense articles on the U.S. Munitions List to Lebanon without first obtaining the required licenses from the State Department. Following that conviction he was sentenced to a $5,000 fine, a $100 special assessment, and one year of supervised release.

As a result of this order, neither this man nor anyone acting on his behalf may directly or indirectly participate in any way in any transaction involving any commodity, software, or technology exported or to be exported from the U.S. that is subject to the EAR.

For more information on export controls and compliance, please contact attorney Kristine Pirnia.

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