During the recent tariff actions on steel and aluminum products, the trade community has asked questions about how these new duties should be applied and declared. Avalon reached out to the law firm of Roberts & Kehagiaras LLP for some clarification on these issues.
Here are some of the most frequent questions, followed by their answers.
Question: Does claiming U.S. melt/pour or smelt/cast under the new steel and aluminum tariff apply to certain steel and aluminum products and not others?
Answer: Yes. The U.S. melt/pour duty-free benefits can only be utilized for a new steel derivative product under 9903.81.90 and 9903.81.91, such as fittings, bridges, doors, springs, steel tables, oilfield equipment, and prefabricated buildings.
Similarly, the U.S. smelt/cast duty-free benefits can only be utilized for new aluminum derivative articles under 9903.85.07 and 9903.85.08, which include household aluminum products such as cookware, fasteners, ladders, parts of machinery, tools, furniture, and aluminum components for electrical equipment.
Question: When do importers benefit from claiming U.S. melt/pour or smelt/cast under the new steel and aluminum tariff actions?
There are no duty benefits for proof of melt/pour or smelt/cast for the old steel and aluminum derivative articles under 9903.81.89 and 9903.85.04, respectively, which covers certain nails, tacks, bumper and body stampings, stranded wire, and cables. However, importers can utilize certain Chapter 98 programs for preferential duty treatment, such as the Heading 9817 agriculture exception.
Additionally, there are no melt/pour or smelt/cast benefits for primary steel and aluminum products, which include bars, rods, sheets, plates, ingots, tubes, foil, pipes, castings, certain fittings, and forgings.
Question: Do the Section 232 duties “stack” with other additional duties, such as Antidumping & Countervailing Duties, Section 301 duties, and International Emergency Economic Powers Act (“IEEPA”) duties?
Answer: Yes, the Section 232 duties on steel and aluminum articles and derivative products “stack.” These are additional duties that apply to goods in addition to other duties, including trade remedies such as Antidumping and Countervailing Duties, Section 301 duties (e.g., China tariffs), and IEEPA duties on Chinese, Mexican, and Canadian products. An imported good could be subject to Section 232 duties and IEEPA duties, for example, totaling an effective 50% net additional duty rate.
Question: What are the most recent rules and guidance on Section 232 duties? Can we expect additional guidance from CBP or the Department of Commerce?
Answer: CBP has published additional guidance for Section 232 duties, which is available on CBP’s website. The following resources address the new steel and aluminum tariffs:
Do you have questions about the new steel and aluminum tariffs? Contact an attorney at Roberts & Kehagiaras LLP today.