Cargo Systems Messaging Service

CSMS # 62063449 - GUIDANCE: Section 232 Additional Duties on Certain Aluminum Imports from Mexico

The purpose of this message is to provide guidance on the increased duties on certain aluminum and certain derivative aluminum imports that are the products of Mexico.

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 (Section 232), providing for additional import duties for certain aluminum articles, effective March 23, 2018, and subsequently modified by several Presidential Proclamations.

In addition, Proclamation 9980 of January 24, 2020, extended the tariffs imposed by Proclamation 9704, as amended, to apply to certain derivatives of aluminum but excluded products of Mexico (among others), effective February 8, 2020.

On February 24, 2023, Proclamation 10522 (88 FR 13267), imposed a 200 percent ad valorem tariff on aluminum and derivative aluminum articles where any amount of primary aluminum or derivative aluminum used in the manufacture of aluminum and derivative aluminum articles is smelted or cast in Russia, including such products of Mexico, effective April 10, 2023.  See Cargo Systems Messaging Service (CSMS) #55438432 (March 10, 2023) and CSMS #55701614 (March 30, 2023).  

On July 10, 2024, the President issued Presidential Proclamation 10782 (Adjusting Imports of Aluminum into the United States, 89 FR 57339), which imposed an additional 10 percent ad valorem tariff on certain products of Mexico for which the reported primary or secondary country of smelt, or country of most recent cast, is China, Belarus, Iran, or Russia.  While in effect, Proclamation 10522 supersedes Proclamation 10782, and continues to impose a 200 percent ad valorem tariff on products of Mexico where any amount of primary aluminum is smelted in Russia, and where the article is cast in Russia.

Proclamation 10782 also implemented a country of smelt and country of most recent cast reporting requirement for imports of aluminum and derivative aluminum articles that are products of Mexico. A certificate of analysis for smelted primary aluminum and cast is required for such articles, which must be uploaded to the Document Image System (DIS).

Eligibility for an exemption from the additional Section 232 duties imposed by Proclamation 10782is contingent upon the data provided in the certificate of analysis.  The primary country of smelt, secondary country of smelt, and country of cast must be reported at entry summary in the Automated Commercial Environment (ACE). See CSMS #55438432 (March 10, 2023); CSMS #55468907 (March 13, 2023).

The functionality to accept the Section 232 duties due on subject articles that are the products of Mexico was deployed in ACE effective July 10, 2024.  

GUIDANCE

Effective July 10, 2024, pursuant to Proclamation 10782 (89 FR 57339), certain aluminum and derivative aluminum articles that are products of Mexico and for which the reported primary or secondary country of smelt, or country of most recent cast, is China, Belarus, or Iran, are subject to a 10 percent ad valorem tariff. Articles containing any amount of primary aluminum smelted or cast in Russia remain subject to a 200 percent ad valorem tariff.  Accordingly, for subject articles that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on July 10, 2024, importers should declare the following classifications, as appropriate:

Heading 9903.85.71, Harmonized Tariff Schedule of the United States (HTSUS), for aluminum articles enumerated in U.S. note 19(b) to subchapter III of chapter 99 of the HTSUS, that are products of Mexico and contain primary aluminum for which the primary country of smelt, secondary country of smelt, or country of most recent cast, is China, Russia, Belarus or Iran. Such articles are subject to a 10 percent ad valorem duty rate.

Heading 9903.85.72, HTSUS, for derivative aluminum articles enumerated in U.S. note 19(a)(iii) to subchapter III of chapter 99 of the HTSUS, that are products of Mexico and contain primary aluminum for which the primary country of smelt, secondary country of smelt, or country of most recent cast, is China, Russia, Belarus or Iran. Such articles are subject to a 10 percent ad valorem duty rate.

Heading 9903.85.67, HTSUS, for aluminum articles enumerated in U.S. note 19(b) to subchapter III of chapter 99 of the HTSUS, where any amount of primary aluminum used in the manufacture of the aluminum articles is smelted in Russia, or where the aluminum articles are cast in Russia. Such articles are subject to a 200% ad valorem duty rate.

Heading 9903.85.68, HTSUS, for derivative aluminum articles enumerated in U.S. note 19(a)(iii) to subchapter III of chapter 99 of the HTSUS, where any amount of primary aluminum used in the manufacture of the derivative articles is smelted in Russia, or where the derivative aluminum articles are cast in Russia. Such articles are subject to a 200% ad valorem duty rate.

The primary country of smelt, secondary country of smelt, and country of most recent cast must be reported at entry summary.  Any unliquidated entries that did not provide an International Organization for Standardization (ISO) codes for primary country of smelt, secondary country of smelt and country of cast on the entry summary line will need to file a Post Summary Correction (PSC) to correct their entries.

Filers may only report “N/A” for the primary and secondary country of smelt if the product contains only secondary aluminum and no primary aluminum.  Secondary aluminum is defined as aluminum metal that is produced from recycled aluminum scrap through a re-melting process.  See CSMS #55438432 (March 10, 2023).

If the entry is beyond the PSC filing timeframe, importers may protest the liquidation if within the protest filing timeframe. 

For reference, a summary of Section 232 Chapter 99 HTSUS classifications is attached. 

FOREIGN TRADE ZONES

Pursuant to Proclamation 10782, any imports of aluminum or derivative aluminum articles that are products of Mexico, and that were admitted into a Foreign Trade Zone (FTZ) prior to 12:01 a.m. eastern daylight time on July 10, 2024, will be subject upon entry for consumption made on or after 12:01 a.m. eastern daylight time on July 10, 2024, to the provisions of: Proclamations 9893 and 9980, as appropriate, if the article contains primary aluminum for which the primary country of smelt, secondary country of smelt, or country of most recent cast, is China, Belarus or Iran; and, Proclamation 10522 if the article contains any amount of primary aluminum smelted in Russia, or where the aluminum or derivative aluminum article is cast in Russia.  

EXCLUSIONS

Exclusions, to include General Approved Exclusions, will exempt subject articles from the Section 232 duties imposed in Proclamation 10782. For guidance on using an approved exclusion granted by the Department of Commerce, please see CSMS #55844950 (April 10, 2023) and CSMS #61248079 (July 3, 2024).

ADDITIONAL INFORMATION

Reminder: importers, brokers, and/or filers should refer to CSMS #39587858 (August 30, 2019) for guidance on filing an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise.

For questions regarding Section 232 trade remedies, please refer to CSMS #42203908 (March 30, 2020) or 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.

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