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232 Update: Exemptions Extended, Drawback Denied



On May 1, 2018 Customs issued updated instructions to the trade with respect to 232 duties on steel and aluminum. There were several significant changes to the application of the programs.

• Articles subject to 232 (whether steel of aluminum) are not eligible for drawback.

• Articles subject to 232 (whether steel of aluminum) are not eligible for AGOA or GSP. Importers must pay both the 232 duties, and normal Column 1 duty amounts. Imports from Argentina and Brazil remain GSP eligible because Argentina and Brazil are not subject to the 232 duties.

• Importers may continue to claim any other trade preferences on imports, regardless of whether the country is exempt from 232.

• Articles subject to 232 (whether steel of aluminum) entered under 9802.00.60 (metal processed in the United States and exported for further processing) shall be assessed 232 duties on the full value of the good, rather than only the value added.

• Articles subject to 232 (whether steel of aluminum) will continue to be admitted into Foreign Trade Zones under “privileged foreign status” unless the articles are eligible for “domestic status” under the FTZ regulations.

• Existing exemptions from the steel duties for Canada, Mexico, Argentina, Australia, Brazil, and the EU are extended until midnight (Eastern) on May 31.

• On June 1, steel imports from Argentina, Australia, and Brazil will not be subject to 232, but subject to a negotiated agreement with the United States. Unless an agreement is reached, imports from Canada, Mexico, and the EU will be subject as of June 1.

• As of May 1 steel imports from Korea will be subject to quotas instead of the 25% steel duty (Customs indicates there will be a separate communication about the quota).

• Existing exemptions from the aluminum duties for Canada, Mexico, Argentina, Australia, Brazil, and the EU are extended until midnight (Eastern) on May 31.

• On June 1, aluminum imports from Argentina, Australia, and Brazil will not be subject to 232, but subject to a negotiated agreement with the United States. Unless an agreement is reached, imports from Canada, Mexico, and the EU will be subject as of June 1.

• As of May 1 aluminum imports from Korea are subject to 232 duties. There are no aluminum quotas contemplated.

The full document setting forth these updates can be seen
here. Please do not hesitate to contact any of our attorneys if you have any questions, or want to discuss preserving claims on ongoing imports.

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