CBP's FAQ on Section 232 Tariffs Addresses Questions on Handling New Steel and Aluminum Derivatives
CBP has updated its FAQ on Section 232 tariffs for aluminum and steel on its website, addressing certain elements of the tariffs that the trade community has been grappling with, particularly on determining the value of new steel and aluminum derivatives outside of chapters 73 and 76 (see 2503140059.
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In response to the question about how to determine the value of aluminum or steel content for derivative products outside of chapters 73 and 76, CBP said: "The value of the steel/aluminum content should be determined in accordance with the principles of the Customs Valuation Agreement, as implemented in 19 U.S.C. 1401a. Thus, the value of the steel/aluminum content is the total price paid or payable for that content, which is the total payment (direct or indirect, and exclusive of any costs, charges, or expenses incurred for transportation, insurance, and related services incident to the international shipment of the merchandise from the country of exportation to the country of importation) made/to be made for the steel/aluminum content by the buyer to, or for the benefit of, the seller of the steel/aluminum content.
"Normally, this would be based on the invoice paid by the buyer of the steel/aluminum content to, or for the benefit of the seller of the steel/aluminum content," CBP continued.
For products that don't contain steel or aluminum content but still fall under a Harmonized Tariff Schedule classification that would be subject to Section 232 on derivative steel or aluminum articles, CBP reiterated guidance that it previewed during the March 20 ACE bi-weekly trade call (see 2503200063). ACE still requires the steel melt and pour or aluminum smelt and cast country to be reported in this type of situation, the agency said.
"For such situations for steel derivative HTS classifications, where the steel country of melt and pour is required, report the country reported as the country of origin of the non-steel article as the steel country of melt and pour," CBP said in its FAQ.
"For such situations for aluminum derivative HTS classifications, where the aluminum country of smelt and cast is required, report 'Y' for the secondary country of smelt, and report the country reported as the country of origin of the non-aluminum article as the secondary country of smelt code, and as the country of cast," CBP continued. "For all other fields, continue to follow the CATAIR including reporting on one entry summary line for non-Section 232 entries."
While CBP isn't requiring an aluminum certificate analysis to be filed at the time of entry, the agency can request the importer to provide an aluminum certificate of analysis if CBP needs one to ensure compliance with the entry requirements pertinent to the item being imported.
"CBP reminds the importing community that it is the responsibility of the importer to exercise reasonable care when making entry and accurately declare all requisite information to ensure the proper classification of the imported merchandise for duty assessment," CBP said. "The party making entry must certify that such declared classification is consistent with the information and documentation that is provided with the entry and entry summary, which must be true and correct to the best of the importer’s knowledge and belief."