On July 10, 2024, the Biden Administration announced tariff increases on imports of
aluminum and
steel products. The tariff increases are the latest measure to combat the circumvention of Section 301 duties imposed against Chinese origin products by shipping the products through third countries.
The modifications apply to goods entered or withdrawn for consumption on or after July 10, 2024.
Aluminum Tariff Increase
The Administration announced a country of smelt and country of most recent cast requirement for “product of Mexico” aluminum articles. It also announced an increase in the Section 232 duty rates for aluminum articles and derivative aluminum articles that are “products of Mexico” containing aluminum for which the country of smelt, secondary country of smelt, or country of most recent cast is China, Russia, Belarus, or Iran. The country of smelt terms are defined as follows:
- Primary Country of Smelt: the country where the largest volume of new aluminum metal is produced from alumina (or aluminum oxide) by the electrolytic Hall-Héroult process.
- Secondary Country of Smelt: the country where the second largest volume of new aluminum metal is produced from alumina (or aluminum oxide) by the electrolytic Hall-Héroult process.
- Country of Most Recent Cast: the country where the aluminum (with or without alloying elements) was last liquified by heat and cast into a solid state. The final solid state can take the form of either a semi-finished product (slab, billets or ingots) or a finished aluminum product.
The Harmonized Tariff Schedule for the United States (“HTSUS”) was amended, specifically by adding note 19 to subchapter III of chapter 99, to reflect the change in duty rates.
To be eligible for an exclusion from the Section 232 duties, importers of aluminum and derivative aluminum articles that are products of Mexico must provide a certificate of analysis indicating that the product does not contain “primary aluminum for which the reported primary country of smelt, secondary country of smelt, or country of most recent cast is China, Russia (subject to paragraph 10 of this proclamation), Belarus, or Iran.”
Pursuant to the Proclamation, U.S. Customs and Border Protection (“CBP”) will implement smelt and cast informational requirements “as soon as practicable.”
Steel Tariff Increase
The Administration also announced a melt and pour standard along with an increase in Section 232 duty rates for steel and steel derivatives for “products of Mexico” but melted and poured in a country aside from the United States, Canada, or Mexico. Additionally, the HTSUS was amended, specifically by adding note 16 to subchapter III of chapter 99, to reflect the change in duty rates.
To demonstrate and comply with the melt and pour standard, affected importers “shall” provide documentation to CBP officials to sufficiently identify where the steel was melted and poured. The President also issued an order to CBP requiring it to implement the melt and pour information requirements “as soon as practicable.”
[View source.]
