We hope our webinar on March 10th on Steel, Aluminum and Derivatives answered core questions you had about your products.
There was a flurry of additional activity on the tariffs on these products in recent days so we’ve included an update on the net result along with links to the webinar recording, the presentation, the product HTS codes, and answers to some of the questions we received.
- Webinar Presentation Link
- Webinar Link
- All Section 232 tariff rate and absolute quotas for steel and aluminum commodities expired on March 11th, 2025
- Tariffs on Steel and Aluminum imports into the USA are effective as of March 12th
- Steel, Aluminum, and Derivatives HTS List Link
- The tariffs on derivative products – aluminum and steel – that were announced, but not to be implemented until a system was implemented by CBP to do so, will now begin from March 12th, as per an instruction by CBP
Additional Q&A
Here is feedback on some of the questions we couldn’t get to during the session:
- How does this impact US made goods into CA/MX? Is the USMCA still in effect?
Goods covered by USMCA can still move under that agreement - How far is USITC going out to finished products? For example, SS Bowls or Steel shelving?
The Executive Order (EO) specified the list of products to be considered a derivative. Bowls may be considered in the HTS categories below, which are derivative products. Likewise, certain shelving is included:- 7323.99.50 – Table, kitchen or other household articles and parts thereof, of iron (other than cast iron) or steel, not coated or plated with precious metal, of tinplate – Steel
- 7323.99.70 – Other table, kitchen or other household articles and parts thereof, not coated or plated with other precious metal (cooking ware) – Steel
- 7323.99.90 – Other table, kitchen or other household articles and parts thereof, not coated or plated with other precious metal (other) – Steel
- 7321.90.60 – Other parts, including shelving and racks for cooking ovens – Steel
- What about the labor costs on derivatives? Every product we’re paying for the labor and for the raw material, Do we need to pay section 232 on the labor part of the cost?
The “value” of the steel/aluminum has not been defined to exclude labor, processing, or overhead costs. In previous cases involving derivative products, all of those costs were included in the value of the exported steel/aluminum and comprised part of the dutiable cost.
- What country of origin is Canada targeting on tariffs? Is it on all imports, USA or CN?
Products originating from the USA - In case we paid duties on full values of the product, then we are later (after entries were made) obtaining the values of steel/aluminum content for involved derivative products, is it possible that we are able to submit PSC or file a protest to recoup this additional duties paid?
Neither protests nor PSCs can be filed for FTA claims. A missed trade agreement isn’t an eligible issue for a PSC so the importer would need to file a 1520 (D) Post Importation Claim on any merchandise that was eligible for the trade agreement but not claimed at the time of entry. That’s based on the goods qualifying under the provisions of the trade agreement at the time of entry for being originating, Regional Value Calculation, etc.
If CBP denies the 1520 (D) claim then the importer still retains the right to file a 1514 Protest against the denial within 90 days of the determination, or entry liquidation (19 CFR 181.75 (b)(2)(iv). Otherwise, an importer cannot file a 1514 protest for a FTA claim generally. An importer can only protest a denied 1520 D claim. If an importer files a protest in the first instance, it will be denied. Alternatively, FTA reconciliation can be used. - Do you have to reclassify the aluminum content once you break out the steel content? Example: 9403200050. Furniture break out the steel legs those would now be parts of classification.
In the case where the value of the steel content is less than the entered value of the imported article, the good must be reported on two lines. The first line will represent the non-steel content while the second line will represent the steel content. Each line should be reported in accordance with the below instructions.
Non-Steel content, first line:- Ch 1-97 HTS, this same HTS must be reported on both lines.
- Country of origin, same must be reported on both lines.
- Total entered value of the article less the value of steel content.
- Report the total quantity of the imported goods.
- Report all other applicable duties, such as IEEPA tariffs and antidumping and countervailing duties.
Steel content, second line: - Same Ch. 1-97 HTS reported on the first line.
- Same country of origin reported on the first line.
- Report 0 for quantity for the Ch. 1- 97 HTS.
- Report the value of steel content.
- Report the Section 232 duties based on the value of steel content with HTS 9903.81.91.
- Report a second quantity (of the steel content) in kilograms with the HTS 9903.81.91.
- Report all other applicable duties, such as IEEPA tariffs and antidumping and countervailing duties.
