Reminder: New Section 232 Duties on Certain Steel and Aluminum Products from Mexico | Customs & International Trade Law Blog

On July 10, 2024, President Biden issued two proclamations on adjusting imports of metal and aluminum into the US. The proclamations enhance the part 232 obligation charge for each merchandise and alter the necessities for avoiding part 232 duties.

Metal Proclamation

The metal proclamation implements a soften and pour requirement for imports of metal articles which can be merchandise of Mexico. It additionally will increase the part 232 obligation charge for imports of metal articles and by-product metal articles which can be merchandise of Mexico which can be melted and poured in a rustic apart from Mexico, Canada, or the US. If the nation of soften and pour is any nation apart from the U.S., Mexico, or Canada, then the metal articles are topic to an extra 25% obligation.

In making this adjustment, the Administration said that home metal producers’ capability utilization stays under the goal 80 % capability utilization really useful within the Secretary of Commerce’s report of January 11, 2018. Moreover, imports of metal articles from Mexico have elevated considerably. Within the opinion of the Administration and the Secretary of Commerce, these developments point out the necessity for additional motion underneath part 232.

Aluminum Proclamation

The aluminum proclamation carried out a rustic of smelt and nation of most up-to-date forged requirement for imports of aluminum articles which can be merchandise of Mexico. It additionally elevated the part 232 obligation charge for imports of aluminum articles and by-product aluminum articles which can be merchandise of Mexico containing aluminum for which the reported major nation of smelt, secondary nation of smelt, or nation of most up-to-date forged is China, Russia, Belarus, or Iran.

To keep away from 232 tariffs, aluminum articles and by-product aluminum articles which can be merchandise of Mexico should be accompanied by a certificates of research proving the first nation of smelt, secondary nation of smelt, or nation of most up-to-date forged.

Because it did within the metal proclamation, the Administration said that home aluminum producers’ capability utilization stays under the goal 80 % capability utilization really useful within the Secretary’s report of January 19, 2018, and imports of aluminum articles from Mexico have elevated considerably.

The proclamation said that these measures will present an efficient, long-term different means to handle each aluminum article imports that threaten nationwide safety and extra aluminum capability and manufacturing.

CBP Steering on Aluminum

On September 4, 2024, CBP issued steerage to help importers impacted by the extra duties on aluminum. The steerage supplies particular HTSUS headings importers ought to declare:

Heading 9903.85.71 for aluminum articles for which the first nation of smelt, secondary nation of smelt, or nation of most up-to-date forged, is China, Russia, Belarus or Iran.
Heading 9903.85.72 for by-product aluminum articles for which the first nation of smelt, secondary nation of smelt, or nation of most up-to-date forged, is China, Russia, Belarus or Iran.
Heading 9903.85.67 for aluminum articles when any quantity of major aluminum used within the manufacture is smelted in Russia, or when the aluminum articles are forged in Russia.
Heading 9903.85.68 for by-product aluminum articles when any quantity of major aluminum used within the manufacture is smelted in Russia, or when the by-product aluminum articles are forged in Russia.

The steerage additionally specifies that filers could solely report “N/A” for the first and secondary nation of smelt if the product incorporates solely secondary aluminum and no major aluminum. 

Trying Forward

The proclamations state that the US will monitor the effectiveness of those measures and will rethink the insurance policies as applicable.

Importers ought to revisit their insurance policies and procedures governing metal and aluminum imports in gentle of those proclamations.

For help complying with these new necessities or for extra info on how this variation will impression your enterprise, contact Diaz Commerce Regulation.