NAFTZ is pleased to announce that the Presidential Proclamation adjusting imports of steel into the United States, issued on December 27, 2021, incudes language addressing goods currently admitted to FTZs and such goods will not be subject to the Section 232 tariffs in place at time of admission.
The Proclamation states, “Any imports of steel articles from the member countries of the EU that were admitted into a United States foreign trade zone under ‘privileged foreign status’ as defined in 19 CFR 146.41, prior to 12:01 a.m. eastern standard time on January 1, 2022, shall be subject upon entry for consumption made on or after 12:01 a.m. eastern standard time on January 1, 2022, to the provisions of the tariff-rate quota in effect at the time of the entry for consumption [emphasis added].”
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. Upon receiving this announcement, NAFTZ launched an action alert calling for input from members affected by this new TRQ. After discussions with the Department of Commerce and the members of the Senate and House of Representatives of our members who could stand to be penalized by improper implementation of the E.U. steel/aluminum TRQ program, NAFTZ was successful in ensuring that the implementing proclamation allowed goods already admitted in FTZs to be removed without paying the 25 percent steel and 10 percent aluminum tariffs in place at the time of admission that is no longer applicable after January 1, 2022.
Further research is being done to understand the impact of EU steel and aluminum products admitted to FTZs after January 1, 2022 including the impact on manufacturing of such items. If you have questions or further information about this TRQ on EU steel and aluminum, please contact NAFTZ offices at email@example.com.