Update - Imports of Steel and Aluminum Duty Rate Increase - DACHSER Intelligent Logistics

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5/2/2018
Update - Imports of Steel and Aluminum Duty Rate Increase

As already reported, on March 14, 2018, U.S. President, Donald Trump, signed certain proclamations that will increase the duty rate on imported steel and aluminum. The exemptions based on country of origin that were originally effective through May 1, 2018 have now been extended through May 31, 2018.
Imports of Steel and Aluminum Duty Rate Increase

US Customs and Border Protection announced via CSMS# 18-00317 that the import duties for products covered by Section 232 for goods with countries of origin in Canada, Mexico, Australia, Argentina, South Korea, Brazil and member countries of the European Union would continue to be exempt through May 31, 2018.

Beginning June 1, 2018, the additional import duties under Section 232 will apply to all countries of origin except Argentina, Australia, Brazil and South Korea.

Products made of iron or steel, imported into the United States with a country of origin of South Korea are, as of May 1, 2018, subject to an absolute quota. Additional details regarding the absolute quota can be found as published by US Customs in CSMS #18-000316.

GSP & AGOA Eligible Goods

Goods that may be eligible to duty free treatment under the Generalized System of Preferences (GSP) and the African Growth and Opportunity Act (AGOA) that are also subject to the Section 232 duties may not receive GSP or AGOA preference. Brazil and Argentina are the only exempt countries that may claim GSP.

Importers must pay the normal duty rates under column 1 and cannot submit the GSP or AGOA Special Program Indicators. Trade preference may be claimed for the other trade preference programs and free trade agreements, but Section 232 duties must be paid on imports subject to the additional duties on steel and aluminum even where trade preferences apply.

Applicable Tariffs

As a reminder, the tariff rate for steel will increase to 25% and the tariff rate for aluminum will increase to 10% for all goods classified under the sections listed below:

Goods made of steel and classified under HTSUS subheadings:

  • 7206.10 – 7216.50
  • 7216.99 – 7301.10
  • 7302.10
  • 7302.40 – 7302.90 
  • 7304.10 – 7306.90

Goods made of aluminum and classified under HTSUS subheadings:

  • 7601
  • 7604 – 7609
  • 7616.99.5160 
  • 7616.99.5170

For importers of aluminum and steel, this will have a large impact on their daily operations. It is important that you remain informed on this topic and address it with all layers of the organization. As additional details are made available, we will continue to provide updates.

The information provided above is general, please contact your broker for exact details on how this impacts your products. For all other inquiries do not hesitate to contact your local DACHSER representative.

For previous updates on the steel and aluminum tariff click here.

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