On August 13, 2020, CBP issued CSMS #43654621 – GUIDANCE: Additional Duty Under Section 232 on Imports of Aluminum Articles from Canada, which is reproduced below:
Background
On March 8, 2018, the President issued Proclamation 9704 on Adjusting Imports of 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 aluminum articles, effective March 23, 2018.
On August 6, 2020, the President issued a Presidential Proclamation on Adjusting Imports of Aluminum Into the United States, announcing that certain aluminum articles imported under Harmonized Tariff Schedule of the United States (HTSUS) subheading 7601.10 that are the products of Canada will be subject to the additional 10 percent ad valorem rate of duty.
The increased rates of duty on certain aluminum articles that are the products of Canada are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 16, 2020.
The functionality for the acceptance of the 232 additional duties on aluminum articles that are the products of Canada will be available in the Automated Commercial Environment (ACE) as of 7 am eastern standard time, August 16, 2020.
Guidance
In addition to reporting the regular HTSUS classification under subheading 7601.10, importers shall report the following HTSUS classification for imported merchandise subject to the additional duty:
- 9903.85.21 (10% ad valorem duty rate for non-alloyed unwrought aluminum products of Canada, provided for in subheading 7601.10)
Foreign Trade Zones
Any imports of non-alloyed unwrought aluminum articles that are the products of Canada provided for in subheading 7601.10, except any articles that are eligible for admission under “domestic status” as defined in 19 CFR 146.43, that are admitted into a United States foreign trade zone on or after 12:01 a.m. eastern daylight time on August 16, 2020, shall be admitted only as “privileged foreign status” as defined in 19 CFR 146.41, and shall be subject upon entry for consumption on or after such time and date to the 10 percent ad valorem rate of duty imposed by Proclamation 9704, as amended.
Any imports of non-alloyed unwrought aluminum articles from Canada provided for in subheading 7601.10 that were admitted into a United States foreign trade zone under “privileged foreign status” as defined in 19 CFR 146.41 prior to 12:01 a.m. eastern daylight time on August 16, 2020, shall be subject upon entry for consumption on or after such time and date to the 10 percent ad valorem rate of duty imposed by Proclamation 9704, as amended.
Non-alloyed unwrought aluminum articles provided for in subheading 7601.10 shall not be subject upon entry for consumption to the duty established in clause 2 of Proclamation 9704, as amended, merely by reason of manufacture in a U.S. foreign trade zone. However, non-alloyed unwrought aluminum articles provided for in subheading 7601.10 admitted to a U.S. foreign trade zone in “privileged foreign status” pursuant to clause 5 of the August 6 proclamation, shall retain that status consistent with 19 CFR 146.41(e).
Products Entered Under Any Free Trade Agreement or Preference Programs
For any such products that are eligible for special tariff treatment under any of the free trade agreements or preference programs listed in general note 3(c)(i) to the tariff schedule, the duty provided in heading 9903.85.21 shall be collected in addition to any special rate of duty otherwise applicable under the appropriate tariff subheading, except where prohibited by law.
Products Entered Under the Provisions of Chapter 98, HTSUS
Goods 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 provisions and applicable CBP regulations, except that duties under subheading 9802.00.60 shall be assessed based upon the full value of the imported articles.
Drawback
No drawback shall be available with respect to the additional Section 232 aluminum duties imposed.
Exclusions
Any exclusion of aluminum articles of Canada granted by the Secretary of Commerce that has not expired shall be valid under the modifications made by the August 6, 2020, Proclamation.
Other Provisions
No claim for entry or for any duty exemption or reduction shall be allowed for the aluminum products enumerated in this paragraph under a provision of chapter 99 that may set forth a lower rate of duty or provide duty-free treatment, taking into account information supplied by CBP, but any additional duty prescribed in any provision of this subchapter or subchapter IV of chapter 99 shall be imposed in addition to the duty in heading 9903.85.21.
For questions related to Section 232 entry-filing requirements, please refer to CSMS message #42203908 (Information on Trade Remedy Questions and Resources). Questions from the importing community concerning ACE entry rejections should be referred to their CBP Client Representative.
Related Messages: 42355735, 18-000424, 18-000372, 18-000352, 18-000317
