Biden Administration Action on Sec. 232
NAFTZ Requests Information on Affected FTZ Companies
NAFTZ Action Alert
On October 31, The United States Trade Representative announced that the United States will replace the existing 25 and 10 percent tariffs on EU steel and aluminum products under Section 232 with a tariff-rate quota (TRQ) with an effective date of January 1, 2022. Under the TRQ arrangement, historically-based volumes of EU steel/aluminum products will enter the U.S. market without the application of Section 232 tariffs subject to certain restrictions, although the implementation details have not yet been announced.
NAFTZ is concerned that without specific clarification, the possibility exists that the 25 percent steel and 10 percent aluminum tariffs might still be assessed on subject merchandise (a) originally admitted into a U.S. FTZ in Privileged Foreign (PF) Status when entered into U.S. commerce under the new TRQ system, and (b) admitted into FTZs on or after January 1, 2022 and subsequently entered. We are in communication with the Biden administration on this matter.
As we press our case with USTR and the Department of Commerce, support is needed from members of the Senate and House of Representatives whose constituents could stand to be penalized by improper implementation of the E.U. steel/aluminum TRQ program. Consequently, the Board of Directors is asking all Grantees and FTZ-user companies who might be impacted by the Sec. 232 EU steel and aluminum measures to identify themselves to NAFTZ and work with us to communicate the seriousness of this matter to their Senators and Representatives to ensure that FTZs are not disadvantaged.
If you are a Grantee who is aware of companies in your zone who might be affected by this action – or a company importing EU steel and/or aluminum – please contact Krosa@naftz.org as soon as possible. Please provide a brief description of the affected operations.