The purpose of this CSMS message is to update CSMS #18-000424 to address the guidance for products entered under the provisions of Chapter 98, HTSUS for goods that are subject to the additional duties for Section 232 Steel and Aluminum.
Background
On March 8, 2018, the President issued Proclamations 9704 and 9705 on Adjusting Imports of Steel and Aluminum into the United States, under Section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862), providing for additional import duties for steel mill and aluminum articles, effective March 23, 2018. See the Federal Register, 83 FR 11619 and 83 FR 11625 (March 15, 2018).
U.S. Note 19 to Subchapter III of Chapter 99, HTSUS, was amended to read, in pertinent part, “[h]eading 9903.85.01 provides the ordinary customs duty treatment of aluminum products of all countries other than products of the United States and other than of countries expressly exempt therefrom . . . .”
U.S. Note 16 to Subchapter III of Chapter 99, HTSUS, was amended to read, in pertinent part, “[h]eading 9903.80.01 provides the ordinary customs duty treatment of iron or steel products of all countries other than products of the United States and other than of countries expressly exempt therefrom . . . .”
These duty requirements are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on March 23, 2018.
Guidance
PRODUCTS ENTERED UNDER THE PROVISIONS OF CHAPTER 98, HTSUS
The amended U.S. Notes 19 and 16 to Subchapter III of Chapter 99, HTSUS, clarify that “[g]oods for which entry is claimed under a provision of chapter 98 and which are subject to the additional duties prescribed herein shall be eligible for and subject to the terms of such provision and applicable U.S. Customs and Border Protection (‘CBP’) regulations, except that duties under subheading 9802.00.60 shall be assessed based upon the full value of the imported article.”
Accordingly, where a valid claim for Chapter 98 treatment is made for goods that are also subject to Section 232 duties (i.e., classifiable in one of the named provisions in Ch. 72, 73 or 76 and a product of a country other than the United States or an exempt country), Chapter 98 treatment will be applied. However, in addition, Section 232 duties, under Chapter 99, will be assessed independently from any Chapter 98 treatment and in accordance with the applicable chapter 99 note. Furthermore, where the Chapter 98 provision provides for the assessment of duties on a portion of the article, such as the value of the repair or other processing, Section 232 duties are to be assessed on that value. However, an exception occurs for subheading 9802.00.60, HTSUS. If covered goods are entered under this provision, Section 232 duties are to be assessed on the entire value of the articles.
Information and contacts related to Section 232 entry filing requirements is located on the trade remedy website on CBP.gov at https://www.cbp.gov/trade/remedies. Questions from the importing community concerning ACE entry rejections involving product exclusion numbers should be referred to their CBP Client Representative. Related CSMS#:18-000424, 18-000372, 18-000352, 18-000317
