White House Sets Changes to Chapter 99 of Tariff Schedule for New Section 232 Aluminum and Steel Tariffs

Presidential Proclamation 9704 creates new subheading 9903.85.01 for covered aluminum imports, as described in new U.S. note 19 to subchapter III of Chapter 99. Likewise, Presidential Proclamation 9705 puts covered iron and steel imports in new subheading 9903.80.01, as described in new U.S. note 16 to subchapter III of Chapter 99.

The International Trade Commission has not yet updated the tariff schedule to include the new tariff provisions, an ITC spokeswoman said. The update will be posted on either the March 23 effective date or “possibly the last business day before,” she said.

Each subheading specifies a rate of duty set at “the duty provided in the applicable subheading,” plus the amount of the new Section 232 tariff. All classification provisions covered by the duties are currently duty-free, so the rate for all covered aluminum products is 10 percent, and for all iron and steel products, 25 percent. But “all anti-dumping, countervailing, or other duties and charges applicable to such goods shall continue to be imposed,” each proclamation says.

The subchapter notes specify that the new Chapter 99 subheadings do not cover products of Canada or Mexico. But the notes say subheadings 9903.80.01 and 9903.85.01 cannot qualify for special rates of duty “under any tariff program enumerated in general note 3(c)(i) to the tariff schedule,” which lists all U.S. trade agreements and preference programs and their Special Program Indicator (SPI) codes.

Annexes Include Scope of HTS Chapter Notes for Section 232 Tariffs

As detailed in the text of the aluminum proclamation released after President Donald Trump’s signature, new U.S. note 19 to subchapter III of Chapter 99 says new subheading 9903.85.01 covers unwrought aluminum provided for in heading 7601; bars, rods and profiles provided for in heading 7604; wire provided for in heading 7605; plates, sheets and strip provided for in 7606; foil provided for in heading 7607; tubes, pipes and tube or pipe fittings provided for in headings 7608 and 7609; and castings and forgings of aluminum provided for in subheading 7616.99.51.

New U.S. Note 16 to subchapter III of Chapter 99 details tariffs on iron and steel products that cover broad swaths of Chapters 72 and 73 of the tariff schedule. Tariff headings fully included in subheading 9903.80.01 and subject to Section 232 duties on iron and steel are as follows:

Other headings in Chapters 72 and 73 are only partially covered by the tariffs. These tariff schedule headings are as follows:

• 7216: Fully covered except cold-formed or cold-finished angles, shapes and sections in subheadings 7216.61.00, 7216.69.00 and 7216.91.00.
• 7301: Only subheading 7301.10.00 for sheet piling is covered. Subheading 7302.20 for angles, shapes and sections are not covered by the Section 232 tariffs.
• 7302: Fully covered except subheading 7302.30.00 for switch plates, crossing frogs, point rods and other crossing pieces. All other goods of heading 7302, including railway or tramway rails, fish plates and sole plates, sleepers (cross-ties) and other track construction material are covered.

CBP May Require Additional Documentation to Administer Tariffs

Each of the annexes includes language allowing CBP to require additional information from importers necessary for the agency to administer the new tariff provisions, as well as any exemptions granted by the Commerce Department. Any importer entering aluminum or iron and steel products covered by the tariffs “shall provide any information that may be required, and in such form, as is deemed necessary by CBP in order to permit the administration of this subheading. Importers are likewise directed to report information concerning any applicable exclusion granted by Commerce in such form as CBP may require.” CBP did not immediately comment.

The proclamations also require that, if Commerce announces any new product-specific exemptions to the Section 232 tariffs on aluminum or iron and steel, that the agency “shall immediately convey all such determinations.” CBP is then required to implement exemptions at the earliest possible opportunity, but not later than five business days after the date on which CBP receives any such determination from Commerce.