CSMS # 62095799 - GUIDANCE: Section 232 Additional Duties on Certain Steel Imports from Mexico

U.S. Customs and Border Protection sent this bulletin at 09/06/2024 01:12 PM EDT

Cargo Systems Messaging Service

CSMS # 62095799 - GUIDANCE: Section 232 Additional Duties on Certain Steel Imports from Mexico

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

BACKGROUND

On March 8, 2018, the President issued Proclamation 9705 on Adjusting Imports of Steel 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 steel 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 9705, as amended, to apply to certain derivatives of steel and steel articles but excluded products of Mexico (among others), effective February 8, 2020.

On July 10, 2024, Proclamation 10783 (Adjusting Imports of Steel Into the United States, 89 FR 57347) imposed an additional 25 percent ad valorem tariff on certain imported steel articles and derivative steel articles that are products of Mexico.

For steel and derivative steel articles, Proclamation 10783 imposed a 25 percent tariff on products of Mexico that are melted and poured in a country other than Mexico, Canada, or the United States. Additionally, Proclamation 10783 implemented a melt and pour requirement for imports of steel and derivative steel articles that are products of Mexico. A steel mill certificate is required for such articles, regardless of whether eligibility for an exemption from the 25 percent ad valorem tariff is claimed. See Cargo Systems Messaging System (CSMS) #50930928 (Feb. 4, 2022).

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

GUIDANCE

Effective July 10, 2024, pursuant to Proclamation 10783 (89 FR 57347), certain imported steel articles and derivative steel articles that are products of Mexico, and melted and poured in a country other than Mexico, Canada, or the United States, are subject to a 25 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 Accordingly, for subject articles that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on July 10, 2024, importers should declare the following classifications, as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 9903.81.85, Harmonized Tariff Schedule of the United States (HTSUS), for steel articles enumerated in U.S. note 16(b) to subchapter III of chapter 99 of the HTSUS, that are products of Mexico and where the steel was melted and poured in a country other than Mexico, Canada, or the United States. Such articles are subject to a 25 percent ad valorem duty rate.

Heading 9903.81.86, HTSUS, for derivative steel articles enumerated in U.S. note 16(a)(ii) to subchapter III of chapter 99 of the HTSUS, that are products of Mexico, and where the steel was melted and poured in a country other than Mexico, Canada, or the United States. Such articles are subject to a 25 percent ad valorem duty rate.

For each of the headings listed above, a steel mill certificate is required to be submitted via the Document Image System (DIS) in ACE. See CSMS #50930928 (Feb. 4, 2022).

Proclamation 10783 requires the country of melt and pour to be reported at entry summary for all countries effective on or after July 10, 2024, and directed CBP to implement the melt and pour information requirements as soon as practicable.

The ACE functionality to report the country of melt and pour for primary steel and derivative steel will be effective on November 21, 2024. For primary steel on all countries subject to section 232, importers must report the International Organization for Standardization (ISO) code. For derivative steel products of Mexico importers are required to report an ISO code or “other”.

For reference, see the attached Section 232 chart for a summary of Section 232 Chapter 99 HTSUS classifications.

PRODUCTS COVERED

Per Proclamations 9705 and 9980, and Chapter 99 of the HTSUS, the following steel articles and derivative steel articles are subject to Section 232 measures, and are covered by the melt and pour reporting requirements:

Steel articles are defined at the HTSUS 6-digit level as 7206.10 through 7216.50, 7216.99 through 7301.10, 7302.10, 7302.40 through 7302.90, and 7304.10 through 7306.90, including any subsequent revisions to these HTSUS classifications.
Derivative iron steel products:
- (A) nails, tacks (other than thumb tacks), drawing pins, corrugated nails, staples (other than those of heading 8305) and similar articles, of iron or steel, whether or not with heads of other material (excluding such articles with heads of copper), suitable for use in powder-actuated hand tools, threaded (described in subheading 7317.00.30); and
- (B) nails, tacks (other than thumb tacks), drawing pins, corrugated nails, staples (other than those of heading 8305) and similar articles, of iron or steel, whether or not with heads of other material (excluding such articles with heads of copper), of one piece construction, whether or not made of round wire; the foregoing described in statistical reporting numbers 7317.00.5503, 7317.00.5505, 7317.00.5507, 7317.00.5560, 7317.00.5580 or 7317.00.6560 only and not in other statistical reporting numbers of subheadings 7317.00.55 and 7317.00.65;
- (C) bumper stampings of steel, the foregoing comprising parts and accessories of the motor vehicles of headings 8701 to 8705 (described in subheading 8708.10.30); and
- (D) body stampings of steel, for tractors suitable for agricultural use (described in subheading 8708.29.21).

FOREIGN TRADE ZONES

Pursuant to Proclamation 10783, any imports of steel or derivative steel 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 9894 and 9980, as appropriate, if the article was melted and poured in a country other than the United States, Mexico, or Canada.

EXCLUSIONS

Exclusions, to include General Approved Exclusions, will exempt subject articles from the Section 232 duties imposed in Proclamation 10783. For guidance on claiming an exclusion granted by the Department of Commerce, please see CSMS #55844950 (April 10, 2023) and CSMS #61248079 (July 3, 2024).

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

Questions from the importing community concerning ACE entry rejections involving product exclusion numbers should be referred to their CBP Client Representative.

Section 232 chart 7.2024pdf 1.pdf

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