The surrebuttal must be submitted in the 232 Exclusions Portal. Each surrebuttal is to be limited to a maximum of 2,500 words, inclusive of all exhibits and attachments, but exclusive of the surrebuttal form and any CBI provided to the U.S. The rebuttal period begins on the date the Department opens the rebuttal period after the posting of the last objection in the 232 Exclusions Portal. The rebuttal period ends seven days after the rebuttal comment period is opened. This seven-day rebuttal period allows for the individual or organization that submitted an exclusion request pursuant to this supplement to submit any written rebuttals that it believes are warranted.
Approximately 3,000 decisions on aluminum products have been issued (approximately 80% of these have been approvals). On March 8, 2018, President Trump announced new tariffs on imports of steel and aluminum from all countries except Canada and Mexico. The tariffs on steel are 25% and the tariffs on aluminum are 10%. This article serves as an update on the most recent tariff related developments. On 8 March, President Trump signed two proclamations – one on steel imports and one on aluminum imports . As expected, the president is imposing, as from 23 March 2018, an additional 25% duty on steel, and an additional 10% duty on aluminum, imported from all countries except Canada and Mexico.
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To establish a process for U.S. businesses to obtain exclusions from certain duties imposed under Sec. 301 of the Trade Act of 1974 and Sec. 232 of the Trade Expansion Act of 1962, and for other purposes. Requires the Administration to publish the Sec. 232 report on automotive imports publically, and to provide any classified information from the report to Congress. To require congressional approval of duty rate changes under Sec. 232 and IEEPA, and to allow for congressional disapproval of actions under Section 301 of the Trade Act of 1974.
While American steel and aluminum manufacturers could get a boost, other sectors of American manufacturing might have to contend with the rising cost of importing raw materials if there is not enough domestic supply to meet surging demands. The cost of products incorporating steel and aluminum could increase if manufacturers decide to shift the rising cost of steel and aluminum to consumers. Fears have been stoked that other countries may respond with retaliatory measures, imposing their own tariffs or quotas on American goods, resulting in a trade war.
Business considerations, such as the need for a multi-year contract for steel with strict delivery schedules in order to complete a significant U.S. project by an established deadline, e.g., a large scale oil and gas exploration project, is another illustrative example of the types of considerations that a person submitting an exclusion request may reference. For example, if the aluminum included in an exclusion request is needed by a U.S. defense contractor for making critical items for use in a military weapons platform for the U.S. Department of Defense, and the duty or quantitative limitation will prevent the military weapons platform from being produced, the exclusion will likely be granted. The U.S. Department of Commerce, in consultation with the other parts of the U.S. Government as warranted, can consider other impacts to U.S. national security that may result from not approving an exclusion, e.g., the unintended impacts that may occur in other downstream industries using aluminum, but in such cases the demonstrated concern with U.S. national security would need to be tangible and clearly explained and ultimately determined by the U.S. For example, if the steel included in an exclusion request is needed by a U.S. defense contractor for making critical items for use in a military weapons platform for the U.S.
- Section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483), authorizes the President to embody in the Harmonized Tariff Schedule of the United States the substance of statutes affecting import treatment, and actions thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.
- A Thompson Hine SmarTrade post will be published upon the issuance of this Federal Register notice.
- Commerce determined imports of each product threaten to impair national security in its final reports, which were submitted to the President, but have not been made public.
- On February 7, 2022, the U.S. and Japan announced a new agreement under which Japan can ship up to 1.25 million tons of steel to the U.S. each year without being subject to the 25 percent additional tariff.
- Exclusions will generally be approved for one year from the date of the signature on the decision memo, but may be valid for shorter or longer than one year depending on the specifics of the exclusion request; any objections filed; and analysis by the U.S.
- Each of the Emirates are able to choose which one of the two systems to operate under.
As a result, a robust and healthy domestic steel production industry may be deemed necessary to guarantee military supply chains in the event of conflict. See EY Global Tax Alert,US suspends planned increase of duties on certain Chinese origin imports “until further notice”; Moves to remove India and Turkey from preferential trade, dated 6 March 2019. The side letters provide for exclusion from Section 232 duties for the first 2.6M passenger vehicles imported from Canada and for the first 2.6M passenger vehicles imported from Mexico; exclusion from Section 232 duties for light trucks imported from Canada and Mexico; and exclusion from Section 232 duties for the first US$32 billion worth of auto parts imported from CA and the first US$108 billion.
An individual or organization is “directly affected” if they are using steel in business activities (e.g., construction, manufacturing, or supplying steel product to users) in the United States. Transcripts of the hearing, excluding any national security classified information, may be purchased from the Department at actual cost of duplication, and will be available for public inspection in the Bureau of Industry and Security Freedom of Information Records Inspection Facility, Room H-4525, U.S. Department of Commerce, Washington, DC 20230. Any request or application that is filed while an investigation is in progress, concerning imports of the same or related article and raising similar issues, may be consolidated with the request, application or motion that initiated the investigation. Communications from agencies of the United States Government, including but not limited to requests for investigation submitted pursuant to § 705.5, will generally not be made available to the public. Any information or material submitted electronically, which the applicant or any other party desires to submit in confidence at any stage of the investigation or as part of an application for an investigation, that is business confidential information should be contained within a file beginning its name with the characters “BC”. Any page containing business confidential information must be clearly marked “BUSINESS CONFIDENTIAL” on the top of that page, and any pages not containing confidential information should not be so marked.
Rebuttals must address an objection to the exclusion request made by the requester. If multiple objections were received on a particular exclusion, the requester may submit a rebuttal to each objector. The most effective rebuttals will be those that aim to correct factual errors or misunderstandings in the objection. Each exclusion request and each objection to a submitted exclusion request is to be limited to a maximum of 5,000 words, inclusive of all exhibits and attachments, but exclusive of the respective forms and any CBI provided to the U.S.
The Federal Register
The President’s proclamation stated that the additional tariffs were needed because the domestic steel and aluminum industries continued to be below the target capacity utilization identified in the initial Commerce investigations, and imports of certain finished, or derivative, products were undermining the purpose of the original proclamations. As you may recall, early last year, President Trump issued two presidential memoranda instructing the U.S. Commerce Department to initiate an investigation into the national security implications of steel imports and aluminum imports into the United States. If these so-called “section 232” investigations determine that steel import and/or aluminum imports “threaten to impair the national security” then the President can impose additional customs duties on covered products.
The bill cites trade damage from retaliation by foreign nations, as primary determining factor. Directed USTR to negotiate with European Union , Japan, and others to resolve national security threat . As Congress debates the Administration’s Section 232 actions it may consider the following issues, many of which include potential legislative responses. Commerce-wide funding by source appropriation and object class for costs undertaken to process the exclusions. Our customs lawyers are known nationally and internationally for their work in customs and international trade law.
Some Members have questioned the Administration’s processes and ability to pick winners and losers through granting or denying exclusion requests. For example, Senator Ron Johnson requested that Commerce provide specific statistics and information on the exclusion requests and process and provide a briefing to the Committee on Homeland Security and Governmental Affairs. House Ways and Means Committee Member Representative Walorski sent the Commerce Secretary multiple letters seeking further data on the exclusion process. Senator Elizabeth Warren requested that the Commerce Inspector General investigate the implementation of the exclusion process, including a review of the procedures Commerce has established; how they are being followed; and if exclusion decisions are made on a transparent, individual basis, free from political interference.
The Department shall, as part of an investigation, seek information and advice from, and consult with, appropriate officers of the United States or their designees, as shall be determined. The Department shall also consult with the Secretary of Defense regarding the methodological and policy questions raised in the investigation.
Steel mill and aluminum articles, as specified in the Presidential Proclamations. CBP is posting on a weekly basis the active Section 232 product exclusions in ACE. The President has the authority to modify the safeguard measures, for example, by widening the coverage to any of the excluded countries. By law, the Secretary of Commerce has 270 days to present the Department’s findings and recommendations to the President. Section 232 mandates that the Secretary provide notice to the Secretary of Defense upon initiation of the investigation. The Secretary also consults with the Secretary of Defense regarding methodological and policy questions raised in the investigation and can seek information and advice from other government agencies.
Politics And Policy
In 2019, the United States imported a total of $831.8 million worth of these selected derivative products. In comparison to 2017, imports of these selected derivative products increased overall by 9.8% ($74.5 million); however, import trends differed by each derivative group. For example, the majority of the overall increase was due to increased imports of steel nails (38.6% increase, $97.9 million, as compared to 2017). Conversely, imports of automobile bumpers decreased 10.6% (-$50.3 million) during the same period .
- The agreement was modified in 1991 and extended through December 1993, (see U.S. President (G. H.W. Bush), “Statement by Press Secretary Fitzwater on Extension of Machine Tool Voluntary Restraint Agreements With Japan and Taiwan,” December 27, 1991).
- The Public Inspection pageon FederalRegister.gov offers a preview of documents scheduled to appear in the next day’s Federal Register issue.
- The Secretary found and advised me of his opinion that aluminum articles were being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States.
- The two sides will also suspend their related World Trade Organization disputes.
- If you are using public inspection listings for legal research, you should verify the contents of the documents against a final, official edition of the Federal Register.
- U.S. President Trump decided to impose tariffs on steel and aluminum imports.
Canada and Mexico are explicitly carved out from the two tariff orders, at least while talks are underway to revise the North American Free Trade Agreement (“NAFTA”). The orders also leave the door open for other countries to have the tariffs modified or removed if alternative means are agreed upon to ensure imports from those countries no longer threaten to impair US national security. The orders do not, however, set forth specific criteria that countries must meet in order to get their own exemptions. Rather, the orders simply state that a country with which the United States has a “security relationship” can open a dialogue with the administration to discuss “alternative” ways to address the apparent security threat posed by that country’s shipments. In Proclamation 9704 of March 8, 2018 , and Proclamation 9705 of March 8, 2018 , I concurred in the Secretary’s findings that aluminum articles and steel articles were being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States.
Trade Adjustment Assistance
The Commerce process for requesting product exclusions applies to derivative products . International trade is an important component of the U.S. economy, and Members often hear from constituents when factories and other businesses are hurt by competing imports, or if exporters face trade restrictions and other market access barriers overseas. Section 232 actions may affect industries, workers, farmers, and consumers in congressional districts and states . Following the steel and aluminum Section 232 actions, Commerce initiated Section 232 investigations into imports of automobiles and automobile parts in May 2018, uranium ore and product imports in July 2018, and titanium sponges in March 2019. Commerce submitted the auto investigation report to the President in February 2019, the uranium report in April, and the titanium sponges report in November, but none of the three reports has been made public or reportedly shared with Congress. All of the investigations potentially raise a number of economic and policy issues for Congress. While China, India, the European Union, Norway, the Russian Federation, Switzerland and Turkey all have ongoing panel proceedings at the WTO challenging the U.S. imposition of duties on steel and aluminum pursuant to Section 232 investigations, the UAE is not a country that has filed a request for consultations on the additional duties on aluminum on its exports to the United States.
In light of this agreement, I determined that, under the framework in the agreement established with Canada, imports of aluminum from Canada would no longer threaten to impair the national security, and thus I decided to exclude Canada from the tariff proclaimed in Proclamation 9704, as amended. I noted that the United States would monitor the implementation and effectiveness of the measures agreed upon with Canada in addressing our national security needs, and that I may revisit this determination as appropriate. In Proclamation 9893 of May 19, 2019 , I noted that the United States had successfully concluded discussions with Canada on satisfactory alternative means to address the threatened impairment of the national security posed by aluminum imports from Canada.
This supplement also specifies the requirements and process for how parties in the United States may submit objections to submitted exclusion requests for relief from the duties or quantitative limitations imposed by the President and the process for rebuttals to submitted objections and surrebuttals (collectively, “232 submissions”). This supplement identifies the time periods for such submissions, the methods of submission, and the information that must be included in such submissions. Department of Commerce in soliciting public comments on issues affecting U.S. industry and national security, the Department is https://accountingcoaching.online/ holding a public hearing as part of the investigation. The hearing will assist the Department in determining whether imports of steel threaten to impair the national security and in recommending remedies if such a threat is found to exist. Public comments at the hearing should address the criteria listed in§ 705.4 of the NSIBR as they affect national security described above. On April 19, 2017, the Secretary of Commerce (“Secretary”) initiated an investigation under section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862), to determine the effects on the national security of imports of steel.
As of April 19, 2017, Commerce has 152 antidumping and countervailing duty orders in place on steel from 32 countries. Twenty-eight of the 152 orders (18%) are on steel products from China – 16 AD and 12 CVD. The steel orders represent almost 40 percent of all AD/CVD orders in place.
The Secretary further recommended the President “take immediate action to adjust the level of these imports through quotas or tariffs” and identified three potential courses of action for both steel and aluminum imports, including tariffs or quotas on all or some steel imports from specific countries. As detailed in the Secretary’s reports, domestic production capacity to produce aluminum articles and steel articles for national defense and critical infrastructure is essential to United States national security. This domestic production capacity is used to provide the essential inputs of aluminum and steel used in derivative aluminum articles and derivative steel articles. The Secretary has assessed that reducing imports of the derivative articles described in Annex I and Annex II to this proclamation would reduce circumvention and facilitate the adjustment of imports that Proclamation 9704 and Proclamation 9705, as amended, made to increase domestic capacity utilization to address the threatened impairment of the national security of the United States. Commerce based its definition of national security on a 2001 investigation on iron ore and semi-finished steel.20 Section 232 investigations prior to 2001 generally used a narrower definition considering U.S. national defense needs or overreliance on foreign suppliers. The Secretary is also authorized to provide such relief based upon specific national security considerations. The United States will implement a number of actions, including a tariff-rate quota that restricts the quantity of aluminum articles imported into the United States from the EU without the application of the tariff proclaimed in Proclamation 9704.
The strain on international trading relationships also could have broader policy implications, including for cooperation between the United States and allies on foreign policy issues and U.S. credibility in future trade negotiations. In turn, the United States has argued that unilateral imposition of tariffs in response to the U.S. The largest declines in aluminum imports were from Canada (-$1,388.4 million, -19.8%), China (-$1,064.4 million, -60.7%), Russia (-$1,024.5 million, -62.8%), and Argentina (-$134.7 million, -24.6%). Aluminum imports increased by value from Australia (+$361.4 million, +170.2%), the European Union (+$607.7 million, +50.1%), and Turkey (+$196.3 million, +390.6%). Prior to the Trump Administration, a president arguably last acted under Section 232 in 1986.
This report provides an overview of Section 232, analyzes the Trump Administration’s Section 232 investigations and actions, and considers select policy and economic implications and issues for Congress. To provide context for the current debate, the report also includes a discussion of previous Section 232 investigations and a brief legislative history of the statute. Trade Representative published in the Federal Register a notice providing country-by-country allocations of the Fiscal Year (October 1, 2017 through Sept. 30, 2018) in-quota quantity of the tariff-rate quotas for imported raw cane sugar, certain sugars, syrups and molasses , specialty sugar, and sugar-containing products. Presidential Proclamation on Adjusting Imports of Aluminum For a steel example, if a U.S. business activity requires that steel plates to be provided must meet certain military testing and military specification standards in order to be used in military combat vehicles, that requirement would be taken into account when reviewing the exclusion request and any objections, rebuttals, and surrebuttals submitted. As another steel example, if a U.S. business activity requires that steel tubing to be provided must meet certain Food and Drug Administration approvals to be used in medical devices, that requirement would be taken into account when reviewing the exclusion request and any objections, rebuttals, and surrebuttals submitted.
The surrebuttal period begins on the date the Department opens the surrebuttal comment period after the posting of the last rebuttal to an objection to an exclusion request in the 232 Exclusions Portal. The surrebuttal period ends seven days after the surrebuttal comment period is opened. This seven-day surrebuttal period allows for the individual or organization that submitted an objection to a submitted exclusion request pursuant to this supplement to submit any written surrebuttals that it believes are warranted to respond to a rebuttal. Surrebuttals must address a rebuttal to an objection to the exclusion request made by the requester.