U.S. Customs and Border Protection (CBP) recently published CSMS #18-000317, an update on the steel and aluminum tariffs under Section 232.


Importers should be aware of these changes

Effective date. The steel and aluminum tariffs have been delayed until May 31, 2018. Argentina, Australia, Brazil, and South Korea will continue to be exempt after June 1.

South Korea. The country now has an absolute quota on steel. Interestingly enough, this is the only absolute quota merchandise that exists at this time. It means that there is a limit to how much steel can be imported. Once the limit, or quota, is reached, no further imports of the product can be made. Any steel shipped to the United States after the quota is filled would have to be exported, destroyed, or placed in a foreign-trade zone (FTZ) or bonded warehouse. For South Korea, aluminum products must also be reported on a quota entry, though they are not subject to a quota.

Drawback. Drawback cannot be claimed on any steel and aluminum imports under Section 232. However, if you were considering drawback as a cost-reducing strategy, then you can still look into U.S. foreign-trade zones, which allow merchandise to be exported into a foreign country without duty payment.

GSP and AGOA. Goods that qualify for GSP or AGOA and are subject to Section 232 tariffs are no longer able to claim GSP or AGOA. All other free trade agreements can be used, but importers are still required to pay the Section 232 tariffs.

Foreign-trade zones. FTZs that import components not subject to Section 232 tariffs, but manufacture the raw materials into finished goods that are subject to Section 232, do not have pay the Section 232 tariffs. This is great news for companies operating zones.


How Integration Point can help

Foreign-trade zones. FTZs help optimize cash flow in times of tariff uncertainty. Some of the benefits companies can leverage through the use of an FTZ are deferred duty savings, MPF, and duty-free exports. If you’d like to learn more about the benefits of FTZs, we have a free ebook on this topic. Click here to download.

Automated Broker Interface. ABI filers have the ability to file quota entries using the Integration Point application. They also have the ability to query CBP systems for the status of quota volumes. So if you import steel products from South Korea, the ability to check the latest quota is critical.

Resources. We have resources available to help you manage rising import tariffs, including several videos, a webcast, and a tip sheet. If you would like to view them, click here.