On May 31, 2018, the President issued Proclamation of May 31, 2018 – Adjusting Imports of Aluminum into the United States (Aluminum Proclamation) and Proclamation of May 31, 2018 – Adjusting Imports of Steel into the United States (Steel Proclamation). The Aluminum proclamation eliminates the exemptions from the 10% tariff granted to Canada, Mexico, Brazil and the EU on behalf of its Member States, in earlier proclamations. In addition, quotas are established for aluminum imports from Argentina and steel imports from Argentina and Brazil, in addition to the quotas previously established for S. Korea. Proclamation 9740 provided that the exemption afforded to steel articles from Canada, Mexico, and the member countries of the EU shall apply only to steel articles of such countries entered for consumption, or withdrawn from warehouse for consumption, through the close of May 31, 2018, at which time such countries shall be deleted from the article description of heading 9903.80.01 of the HTSUS. The Steel Proclamation does not extend this exemption, so Canada, Mexico and EU countries will now be subject to the 25% steel tariffs.
Aluminum
The Aluminum proclamation modifies Proclamation 9739 of April 30, 2018 (Adjusting Imports of Aluminum Into the United States) which had extended the temporary exemption of Argentina, Australia, and Brazil from the 10% tariff proclaimed in Proclamation 9704, as amended, in order to finalize the details of agreements that had been reached in principle with those countries on satisfactory alternative means to address the threatened impairment to the national security. Since that time, the United States has agreed on a range of measures with Argentina and Australia, including measures to reduce excess aluminum production and excess aluminum capacity, measures that will contribute to increased capacity utilization in the United States, and measures to prevent the transshipment of aluminum articles and avoid import surges. In light of these agreements, the President has determined that aluminum articles imports from these countries will no longer threaten to impair the national security and thus has decided to exclude these countries from the tariff proclaimed in Proclamation 9704, as amended. The United States will monitor the implementation and effectiveness of the measures agreed upon with these countries to address its national security needs, and the President may revisit this determination, as appropriate.
The President has determined that, in light of the agreed-upon measures with these countries, and the fact that the tariff will now apply to imports of aluminum articles from additional countries, it is necessary and appropriate, at this time, to maintain the current tariff level as it applies to other countries. Clause 2 of Proclamation 9704 is further amended by striking the last two sentences and inserting in lieu thereof the following two sentences:
Except as otherwise provided in this proclamation, or in notices published pursuant to clause 3 of this proclamation, all aluminum articles imports specified in the Annex shall be subject to an additional 10 percent ad valorem rate of duty with respect to goods entered for consumption, or withdrawn from warehouse for consumption, as follows: (a) on or after 12:01 a.m. eastern daylight time on March 23, 2018, from all countries except Argentina, Australia, Brazil, Canada, Mexico, South Korea, and the member countries of the European Union, (b) on or after 12:01 a.m. eastern daylight time on May 1, 2018, from all countries except Argentina, Australia, Brazil, Canada, Mexico, and the member countries of the European Union, and (c) on or after 12:01 a.m. eastern daylight time on June 1, 2018, from all countries except Argentina and Australia. This rate of duty, which is in addition to any other duties, fees, exactions, and charges applicable to such imported aluminum articles, shall apply to imports of aluminum articles from each country as specified in the preceding sentence.
In order to implement a quota treatment on aluminum articles imports from Argentina, U.S. note 19 to subchapter III of chapter 99 of the HTSUS is amended as provided for in Part A of the Annex to the May 31, 2018 proclamation. U.S. Customs and Border Protection (CBP) shall implement this quota as soon as practicable, taking into account all aluminum articles imports from this country since January 1, 2018. The quantitative limitations applicable to subheadings 9903.85.05 through 9903.85.06 for Argentina, which for calendar year 2018 shall take into account all aluminum articles imports from Argentina since January 1, 2018, shall be effective for aluminum articles entered for consumption, or withdrawn from warehouse for consumption, on or after June 1, 2018, and shall be implemented by CBP as soon as practicable.
In addition, Clause 5 of Proclamation 9710, as amended, is amended by striking the phrase “as amended by Proclamation 9710,” in the first and second sentences and inserting in lieu thereof the following phrase: “as amended, or to the quantitative limitations established by proclamation,”. Clause 5 of Proclamation 9710, as amended, is further amended by inserting the phrase “or quantitative limitations” after the words “ad valorem rates of duty” in the first and second sentences.
Clause 4 of Proclamation 9739 is amended by striking the phrase “as amended by clause 1 of this proclamation,” and inserting in lieu thereof the following phrase: “as amended, or to the quantitative limitations established by proclamation,” in the first sentence. Clause 4 of Proclamation 9739 is further amended by striking the words “by clause 3 of this proclamation” from the second sentence.
Steel
The Steel Proclamation modifies Proclamation 9740 of April 30, 2018 (Adjusting Imports of Steel Into the United States) which had extended the temporary exemption of Argentina, Australia, and Brazil from the 25% tariff proclaimed in Proclamation 9705, as amended, in order to finalize the details of agreements that had been reached in principle with those countries on satisfactory alternative means to address the threatened impairment to the national security. Since that time, the United States has agreed on a range of measures with these countries, including measures to reduce excess steel production and excess steel capacity, measures that will contribute to increased capacity utilization in the United States, and measures to prevent the transshipment of steel articles and avoid import surges. In light of these agreements, the President has determined that steel articles imports from these countries will no longer threaten to impair the national security and thus have decided to exclude these countries from the tariff proclaimed in Proclamation 9705, as amended. The United States will monitor the implementation and effectiveness of the measures agreed upon with these countries to address our national security needs, and the President may revisit this determination, as appropriate.
The President has determined that, in light of the agreed-upon measures with these countries, and the fact that the tariff will now apply to imports of steel articles from additional countries, it is necessary and appropriate, at this time, to maintain the current tariff level as it applies to other countries.
The Steel Proclamation amends the superior text to subheadings 9903.80.05 through 9903.80.58 of the HTSUS by replacing “South Korea” with “Argentina, of Brazil, or of South Korea”.
For the purposes of administering the quantitative limitations applicable to subheadings 9903.80.05 through 9903.80.58 for Argentina and Brazil, the annual aggregate limits for each country set out in the Annex to this proclamation shall apply for the period starting with calendar year 2018 and for subsequent years, unless modified or terminated. The quantitative limitations applicable to subheadings 9903.80.05 through 9903.80.58 for these countries, which for calendar year 2018 shall take into account all steel articles imports from each respective country since January 1, 2018, shall be effective for steel articles entered for consumption, or withdrawn from warehouse for consumption, on or after June 1, 2018, and shall be implemented by CBP as soon as practicable.
The text of subdivision (e) of U.S. note 16 to subchapter III of chapter 99 of the HTSUS is amended by striking the last sentence and inserting in lieu thereof the following sentence: “Beginning on July 1, 2018, imports from any such country in an aggregate quantity under any such subheading during any of the periods January through March, April through June, July through September, or October through December in any year that is in excess of 500,000 kg and 30 percent of the total aggregate quantity provided for a calendar year for such country, as set forth on the Internet site of CBP, shall not be allowed.”.
Clause 5 of Proclamation 9711, as amended, is amended by striking the phrase “as amended by Proclamation 9711,” in the first and second sentences and inserting in lieu thereof the following phrase: “as amended, or to the quantitative limitations established by proclamation,”. Clause 5 of Proclamation 9711, as amended, is further amended by inserting the phrase “or quantitative limitations” after the words “ad valorem rates of duty” in the first and second sentences.
Clause 5 of Proclamation 9740 is amended by striking the phrase “as amended by clause 1 of this proclamation,” and inserting in lieu thereof the following phrase: “as amended, or to the quantitative limitations established by proclamation,” in the first sentence. Clause 5 of Proclamation 9740 is further amended by striking the words “by clause 4 of this proclamation” from the second sentence.
