On December 29, 2021, U.S. Customs and Border Protection (CBP) issued several guidance documents through its Cargo Systems Messaging Service concerning recent Presidential Proclamations that established the tariff rate quota (TRQ) process for imports of aluminum and steel articles from the member countries of the European Union (EU). See Update of December 29, 2021 for details and links to President Biden's proclamations. A summary of CBP's guidance is below, and CBP also has provided general guidance on the overall TRQ process under CMS#0536327 – GUIDANCE: European Union (EU) Section 232 Tariff Rate Quota on Aluminum and Steel Articles and Exempting EU from Derivative Duties.
Aluminum
Effective as of 12:01 a.m. EST on January 1, 2022, imports of aluminum articles from member countries of the EU are subject to a TRQ under the Harmonized Tariff Schedule of the United States (HTSUS) subheadings 9903.85.27 through 9903.85.44. Section 232 aluminum products from the EU that are in-quota will enter free of any Section 232 duty. Filers must use an appropriate 9903.85.27 through 9903.85.44 TRQ ID HTSUS number for the first HTSUS number, followed by the Chapter 76 classification HTSUS number of their goods. TRQ entries will be processed on a "first-come, first-served" basis according to presentation date/time until the country limit for that TRQ ID HTSUS group is reached. EU member country aluminum limit tables organized by Chapter 99 HTSUS TRQ ID group are displayed in the document linked here. The status of TRQs may be tracked via the weekly Commodity Status Report at https://www.cbp.gov/trade/quota/tariff-rate-quotas. The aluminum TRQ will be administered on a semi-annual basis. The first period (through June 30, 2022) is limited to 60% of the annual aluminum country limit.
All aluminum article imports from the EU in excess of the TRQ quantities shall remain subject to the 10 percent ad valorem duty rate imposed by HTSUS subheading 9903.85.01, provided they are not subject to an exclusion. All imports of aluminum articles from the EU must be accompanied by a certificate of analysis in order to be eligible for the TRQ. The aluminum TRQ will be processed daily, Monday through Friday (excluding holidays). For shipments to be processed for the EU TRQ on the same day, the entry summary must be filed, the entry summary payment date must be on file or scheduled for a future statement, and the conveyance must arrive by 4:30 pm in the port's local time zone.
For more details on the TRQ and proper reporting instructions and entry methods, consult CBP's Bulletin on 1st and 2nd Period 2022 TRQ for EU Aluminum Articles.
Steel
Effective as of 12:01 a.m. EST on January 1, 2022, imports of steel articles from member countries of the EU are covered under a TRQ under HTSUS subheadings 9903.80.65 through 9903.81.19. Section 232 steel products from the EU that are in-quota will enter free of any Section 232 duty. Filers must use an appropriate 9903.80.65 through 9903.81.19 TRQ ID HTSUS number for the first HTSUS number, followed by the appropriate Chapter 72/73 classification HTSUS number of their goods. TRQ entries will be processed on a "first-come, first-served" basis according to presentation date/time until the country limit for that TRQ ID HTSUS group is reached. EU member country steel limit tables organized by Chapter 99 HTSUS TRQ ID group are displayed in the document linked here. The status of TRQs may be tracked via the weekly Commodity Status Report at https://www.cbp.gov/trade/quota/tariff-rate-quotas. The steel TRQ will be administered quarterly, with each quarter assigned 25% of the annual TRQ amount. Third quarter and fourth quarter TRQ limits will be evaluated to include carry forward amounts up to 6% of the annual country limit for each steel HTSUS group. Unused first quarter steel quantity, up to 6% of the annual country limit for each HTSUS group, will be combined into the third quarter limit for that HTSUS group. Unused second quarter steel quantity, up to 6% of the annual country limit for each HTSUS group, will be combined into the fourth quarter limit for that HTSUS group.
All steel article imports from the EU in excess of the TRQ quantities will remain subject to the 25 percent ad valorem duty rate imposed by HTSUS subheading 9903.80.01, provided they are not subject to an exclusion. Steel imports from the EU must be melted and poured in a member country of the EU in order to be eligible for the TRQ. Additional details on the melt and pour requirement will be provided by CBP when they are available. The steel TRQ will be processed daily, Monday through Friday (excluding holidays). For shipments to be processed for the EU TRQ on the same day, the entry summary must be filed, the entry summary payment date must be on file or scheduled for a future statement, and the conveyance must arrive by 4:30 pm in the port's local time zone.
For more details on the TRQ and proper reporting and entry methods, consult CBP's Bulletin on 1st and 2nd Quarter 2022 TRQ for EU Steel Articles.
Derivatives
Effective January 1, 2022, imports of aluminum and steel derivatives from the EU, as referenced in Proclamation 9980, will no longer be subject to additional duties under HTSUS subheading 9903.80.03 or HTSUS subheading 9903.85.03 per the Steel Proclamation.
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The EU member countries covered by these guidelines are: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia (Czech Republic), Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.
For aluminum and steel entries under the TRQ procedures, CBP stated: "All entries submitted prior to 8:30 am ET and on January 3, 2022 will be counted in the first opening at 8:30 am ET. If the accepted entry totals for any HTS group submitted prior to the first opening exceed the country limit of that HTS group, they will be prorated."
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
