CBP Warns of Penalties for Non-Compliance With Section 232 Copper Duties
CBP will be watching for entries that don't fully calculate the duty value of merchandise that falls under Section 232 duties for copper and intensive copper derivatives products, according to a cargo systems message offering guidance on the tariff that was announced earlier this week (see 2507300061). The Section 232 tariff calls for a 50% ad valorem duty on all imports of semi-finished copper products and intensive copper derivative products from all countries.
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"When insufficient documentation is provided to substantiate the reported values, CBP will collect the duties on the copper content based on the entire value of the good," CBP said. Documentation may include the bill of materials for the production of the goods, invoices for the materials used in the production of the goods, and accounting documentation to substantiate the reported values.
"Importers who submit underreported declarations may be subject to severe consequences, such as significant monetary penalties, loss of import privileges, and criminal liability, consistent with United States law," CBP continued.
CBP's July 31 guidance lists two headings, 9903.78.01 and 9903.78.02, which provide for the duties for all imported semi-finished copper and intensive copper derivative products starting Aug. 1. Attached to the CSMS message is a list detailing which Harmonized Tariff Schedule codes are subject to these headings.
Merchandise where 9903.78.01 is applicable is subject to a 50% additional ad valorem duty on the copper content of semi-finished copper and intensive copper derivative products. The 50% duty should be reported based upon the value of the copper content, and that value should be "determined in accordance with the principles of the Customs Valuation Agreement, as implemented in 19 U.S.C. 1401a," CBP said.
CBP also said that for imported articles composed only of copper, the dutiable value of the copper content is the total entered value, and the duty "must be reported under the HTSUS 9903.78.01 classification based on the total entered value, on only one entry summary line." If the value of the copper content can't be determined, then filers should "report the duty based on the total entered value, on only one entry summary line," CBP said.
For articles not composed only of copper, the value of the copper content and the value of the non-copper content should be reported on two entry summary lines with the first line representing the non-copper content and the second line representing the copper content, CBP said.
Merchandise where 9903.78.02 is applicable is subject to a 0% "additional ad valorem rate of duty," CBP said. This heading applies to the "non-copper content of semi-finished copper and intensive copper derivative products" and "imported goods under the subject HTSUS classifications" that "contain no copper."
Imported merchandise that falls under this tariff is not eligible for drawback, according to CBP.
The agency also noted that if an imported good is subject to both the Section 232 duties on automobiles and automobile parts "under Proclamation 10908, as amended, and the Section 232 duties on copper and copper derivative products, then the Section 232 duties on copper and copper derivative products are not applicable."