Exemptions From Section 232 Steel and Aluminum Tariffs Are Company or Group-Specific, BIS Says
Product-specific exemptions from new Section 232 tariffs on aluminum and steel products will only apply to the individual or organization requesting the exemption, though additional individuals may file separate requests to obtain the same exemption, according to the Bureau of Industry and Security’s March 19 interim final rule setting procedures for exemption requests and opening up the application period (see 1803160067). BIS will normally decide whether to issue an exemption within 90 days of the request, and exemptions will remain in effect for a year, the agency said.
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Only “individuals and organizations” that use steel or aluminum in business activities in the U.S., such as construction, manufacturing or supplying steel to other users, may submit the requests. Exemption requests may be submitted at any time, and must be submitted electronically via www.regulations.gov on separate forms for steel products and aluminum products. There will then be a 30-day period for filing objections to the exemption requests. President Donald Trump authorized the tariffs, set at 10 percent on aluminum products and 25 percent on steel products, on March 8 (see 1803080025).
BIS will normally issue a decision within 90 days of receiving the request, the agency said. Exemptions will only be granted if an article is not produced in the U.S. in sufficient quantity or quality, or for a specific national security consideration. Approved exemptions will take effect five business days after BIS’ response is published on regulations.gov. “Starting on that date, the requester will be able to rely upon the approved exclusion request in calculating the duties owed on the product imported in accordance with the terms listed in the approved exclusion request,” BIS said.
Exemptions will generally be approved for one year. Other agencies, including the International Trade Commission and CBP, “will take any additional steps needed to implement an approved exclusion request.” Individuals or organizations granted exemptions “must report information concerning any applicable exclusion in such form as CBP may require.” Exclusion identifiers will be used by importers “in the data collected by CBP in order for CBP to determine whether an import is within the scope of an approved exemption request,” BIS said.
BIS “will approve exclusions on a product basis and the approvals will be limited to the individual or organization that submitted the specific exclusion request, unless Commerce approves a broader application of the product-based exclusion request to apply to additional importers,” BIS said. “Other individuals or organizations that wish to submit an exclusion request for a steel or aluminum product that has already been the subject of an approved exclusion request may submit” their own requests. The denial of a request for a given product does not mean other individuals or organizations can’t subsequently request that the same product be exempt, BIS said.
Separate requests should be filed for steel and aluminum products with different physical characteristics or imported under different tariff schedule numbers, BIS said. “Separate exclusion requests must be submitted for steel products with chemistry by percentage breakdown by weight, metallurgical properties, surface quality (e.g., galvanized, coated, etc.), and distinct critical dimensions (e.g., 0.25-inch rebar, 0.5-inch rebar; 0.5-inch sheet, or 0.75 sheet) covered by a common HTSUS subheading,” it said. “Separate exclusion requests must also be submitted for products falling in more than one 10-digit HTSUS statistical reporting number.” Comments on the interim final rule are due May 18.