Importers Still Awaiting Direction From CBP on Section 232 Derivatives Certification
Importers are still waiting for additional direction from CBP on how to manage new duties on steel and aluminum derivatives outside of Chapters 73 and 76, speakers on a KPMG webinar said last week.
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For the new steel and aluminum derivatives that now fall under the Section 232 tariff scheme (see 2503120054), filers must now provide the percentage of weight in kilograms of the derivative, as well as provide the primary and secondary locations of smelting or casting, according to Gisele Belotto, principal of tax, trade and customs for KPMG.
Getting this type of information from suppliers may require creating a solicitation form or obtaining some type of certification from them, she said.
However, “Customs has not provided guidance on what these forms should look like. They haven't even provided guidance that that's what you need to gather this information from your suppliers," Belotto said, and so it might be up to importers, in consultation with organizations like KPMG and informed by existing processes such as FDA solicitations, to create something that would meet the requirements.
“This is evolving. It's probably going to change a lot. But some of the key components here are obviously identifying who the supplier and producer of these products are … the weight, the country of melt, pour, smelt and cast, and the actual value of the [steel and] aluminum components, and then also, some type of statement that kind of makes, that gives the supplier some skin in the game, that they're providing the most accurate information and that they would be able to substantiate this information,” Belotto said. “And this is key” for events such as an audit or a risk assessment process.
Once they have all this information from suppliers, importers should consider developing a database that includes this information as well as relevant Harmonized Tariff Schedule codes and SKUs, Belotto continued. This information also could be helpful when setting up a risk management program, she said.
Importers may also be able to use value reconciliation to mitigate some of the impact of the duties, although further instructions from CBP on this is still on the way, according to Belotto.