U.S. Customs and Border Protection (CBP) announced in CSMS#18-000372: UPDATE: Additional Duty on Imports of Steel and Aluminum Articles under Section 232 an update based on the President’s Proclamation on adjusting the duty and quota requirements for steel and aluminum. Steel and Aluminum Articles Tariff Increase 25% under Section 232.
The update advises as of June 1, 2018, all steel and aluminum articles imported from the following countries are subject to the Section 232 Import Duties:
- Steel: All countries of origin except Argentina, Australia, Brazil and South Korea
- All steel products must be classified under 9903.80.01 (25% percent) in addition to reporting under Chapters 72 and 73.
- Aluminum: All countries of origin except Argentina and Australia
- All aluminum products must be classified under 9903.85.01 (10% percent) in addition to reporting under Chapter 76.
Based on the general increase in the estimated duty for steel and aluminum products, your clients importing these products may require larger bonds as the continuous bond amount is calculated on 10% of the total duties, taxes, and fees for the previous 12 months.
Be better-prepared in case of a bond sufficiency notice from CBP, which allows only 15 days to increase the bond. A bond rendered insufficient as a result of not timely replacing it with a bond in the proper amount could cause importers to incur unnecessary expenses and delays such as demurrage and the risk of cargo going to G.O.
In addition to the Section 232 duties CSMS #18-000372 also advises as of June 1, 2018, all steel and aluminum products imported from the following countries are subject to the Section 232 Absolute Quota:
- Steel: Argentina, Brazil and South Korea
- Aluminum: Argentina
