The previously announced suspension of the Section 232 tariffs for steel imports from Ukraine and steel and aluminum imports from the United Kingdom entered into force on 12:01 a.m. EDT on June 1, 2022, as detailed below. For more information on Section 232 tariffs, please contact attorney Kristen Smith at (202) 730-4965 or via email.
The U.S. announced in mid-May that it would suspend for one year the 25 percent Section 232 tariffs on steel imported from Ukraine. This action has now been implemented through a presidential proclamation and will be in place with respect to imports of steel articles and derivative steel articles from Ukraine entered on or after 12:01 a.m. EDT on June 1, 2022, through 11:59 p.m. EDT on June 1, 2023.
Any imports of steel articles from Ukraine that were admitted into a U.S. foreign trade zone under privileged foreign status as defined in 19 CFR 146.41 prior to 12:01 a.m. EDT on June 1, 2022, will be subject upon entry for consumption made on or after 12:01 a.m. EDT on June 1, 2022, to the 25 percent duty imposed by Proclamation 9705, as amended.
Beginning on 12:01 a.m. EDT on June 1, 2022, the U.S. is replacing its Section 232 tariffs on steel and aluminum from the UK with tariff-rate quotas allowing up to 500,000 tons of UK steel under 54 product categories as well as 21,600 tons of UK aluminum (900 tons of unwrought aluminum under two product categories, 11,400 tons of semi-finished wrought aluminum other than foil under 12 product categories, and 9,300 tons of foil under two product categories) to enter the U.S. duty-free each year, though those amounts may be adjusted annually. Imports in excess of these amounts will be subject to the existing tariffs, which are 25 percent and 10 percent, respectively.
Steel products must be melted and poured in the UK to enter under the TRQ, although a small amount may be further processed in the EU. Semi-finished (wrought) aluminum products may not contain primary aluminum from China, Russia, or Belarus to qualify for the TRQ.
To benefit from the TRQ, any UK steel producer owned by a Chinese entity must provide an annual attestation based on an annual strategic audit conducted by an independent third party to the effect that there is no evidence of market-distorting practices by that producer in the UK that would materially contribute to non-market excess capacity of steel. If such attestation is not provided annually, the DOC may temporarily block the applicable UK producer from accessing the TRQ.
Any imports of subject merchandise from the UK that were admitted into a U.S. FTZ under privileged foreign status prior to 12:01 a.m. EDT on June 1, 2022, will be subject upon entry for consumption made on or after 12:01 a.m. EDT on June 1, 2022, to the provisions of the TRQ in effect at the time of the entry for consumption.
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