The purpose of this message is to provide guidance on the increased Section 232 duties on imports of aluminum and derivative aluminum products from Russia.
BACKGROUND
On March 8, 2018, the President issued Proclamations 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 January 24, 2020, the President issued Proclamation 9980 on Adjusting Imports of Derivative Aluminum Articles and Derivative Steel Articles into the United States, effective February 8, 2020.
On February 24, 2023, the President issued Proclamation 10522 on Adjusting Imports of Aluminum into the United States, announcing that aluminum articles that are the product of Russia, and derivative aluminum articles that are the product of Russia shall be subject to a 200 percent ad valorem rate of duty with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 10, 2023. See 88 FR 13267 issued on March 2, 2023.
Also, imports of aluminum or derivative aluminum articles where any amount of primary aluminum used in the manufacture of the articles is smelted in Russia, or the articles are cast in Russia, will be subject to a 200 percent ad valorem rate of duty with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 10, 2023.
The functionality for the acceptance of the 232 additional duties on aluminum articles that are the products of Russia will be available in the Automated Commercial Environment (ACE) as of 7 am eastern standard time, March 9, 2023. CBP will issue a CSMS to announce when the functionality for the April 10, 2023 effective date will be available in ACE.
GUIDANCE
Effective March 10, 2023, for goods subject to the Proclamation, importers shall report the following HTS classifications:
9903.85.67: “Aluminum articles that are the product of Russia, the foregoing under the terms of note 19(a)(vii)(A) to this subchapter and provided for in the tariff headings or subheadings enumerated in note 19(b) to this subchapter, except any exclusions that may be determined and announced by the Department of Commerce.”
9903.85.68: “Derivative aluminum articles that are products of Russia, when such derivative articles are provided for in the headings or subheadings enumerated in note 19(a)(iii) to this chapter, except any exclusions that may be determined and announced by the Department of Commerce.”
For aluminum and derivative aluminum articles that are products of Russia admitted into a foreign trade zone under privileged foreign status prior to March 10, 2023, and entered for consumption on or after March 10, 2023, contact the Trade Remedy Branch for reporting instructions.
Effective April 10, 2023, for goods subject to the Proclamation, report the following HTS classifications:
9903.85.67: “ Aluminum articles that are the product of Russia, or 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, the foregoing under the terms of note 19(a)(vii)(A) to this subchapter and provided for in the tariff headings or subheadings enumerated in note 19(b) to this subchapter, except any exclusions that may be determined and announced by the Department of Commerce
9903.85.68: “Derivative aluminum articles that are products of Russia, or 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, when such derivative articles are provided for in the headings or subheadings enumerated in note 19(a)(iii) to this chapter, except any exclusions that may be determined and announced by the Department of Commerce”
For aluminum and aluminum derivative articles that are products of Russia, or where any amount of primary aluminum used in the manufacture of the articles is smelted in Russia, or where the articles are cast in Russia; and admitted into a foreign trade zone under privileged foreign status prior to April 10, 2023, and entered for consumption on or after April 10, 2023, contact the Trade Remedy Branch for reporting instructions.
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 headings 9903.85.67 through 9903.85.70 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 imports of aluminum articles or derivative aluminum articles that are the product of Russia shall not be eligible for any General Approved Exclusions as set forth in supplement number 3 to part 705 of title 15 of the Code of Federal Regulations if entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 10, 2023, and any imports of aluminum articles or derivative aluminum articles where any amount of primary aluminum used in the manufacture of the articles is smelted in Russia, or the articles are cast in Russia shall not be eligible for any General Approved Exclusions as set forth in supplement number 3 to part 705 of title 15 of the Code of Federal Regulations if entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on April 10, 2023.
Any other product exclusion of aluminum granted by the Secretary of Commerce that has not expired shall be valid under the modifications made by the February 24, 2023 Proclamation 10522.
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 chapter 99 of the HTSUS shall be imposed in addition to the duties in headings 9903.85.67 through 9903.85.70.
Any subject aluminum and aluminum derivative products shall not be eligible for any quota or tariff-rate quota. All shipments of any article that is otherwise eligible to be entered under a provision that is subject to quantitative limitations, and where any amount of primary aluminum used in the manufacture of the article is smelted in Russia, or the articles are cast in Russia, shall be entered under headings 9903.85.67 through 9903.85.70.
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 regarding quota should be referred to the Quota and Agriculture Branch at HQQuota@cbp.dhs.gov.
Questions from the importing community concerning ACE entry rejections involving product exclusion numbers should be referred to their CBP Client Representative.
Related CSMS Messages: 55014059, 42355735, 18-000424, 18-000372, 18-000352, 18-000317
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