Commerce Makes Major Changes to (Some) Section 232 Exclusions

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May 20, 2024
By: Pietro N. Bianchi

In a final rule, the Bureau of Industry and Security (“BIS”) of the Department of Commerce removed 12 General Approved Exclusions (“GAE”) from Section 232 tariffs on steel and aluminum, effective July 1, 2024. Six GAE are for steel products and six are for aluminum products.

As many of you may know, Section 232 tariffs of 25 percent were imposed on steel and aluminum products to protect U.S. national security, which many NATO allies are upset about. The Secretary of Commerce was authorized to grant exclusions from these duties if the steel or aluminum article is not “produced in the United States in a sufficient and reasonably available amount or of a satisfactory quality” or should be excluded “based upon specific national security considerations.” On December 14, 2020, a number of GAE were established for products consistently found not to be produced in the United States to reduce the government’s burden processing exclusion requests. In its recent final rule, BIS determined, based on public comment, that the products covered by 12 of those GAE no longer met the qualifications for a GAE.

The GAEs on steel that BIS is eliminating are:

·       GAE.24.S: 7211.29.6080, Flat-rolled products of iron or nonalloy steel, of a width of less than 600 mm, not clad, plated or coated: Not further worked than cold-rolled (cold-reduced).

·       GAE.43.S: 7209.90.0000, Flat-rolled products of iron or nonalloy steel, of a width of 600 mm or more, cold-rolled (cold-reduced), not clad, plated or coated.

·       GAE.46.S: 7216.33.0090, Angles, shapes and sections of iron or nonalloy steel.

·       GAE.84.S: 7209.27.0000, Flat-rolled products of iron or nonalloy steel, of a width of 600 mm or more, cold-rolled (cold-reduced), not clad, plated or coated.

·       GAE.90.S: 7216.10.0010 – Angles, shapes and sections of iron or nonalloy steel.

·       GAE.93.S: 7208.38.0015, Flat-rolled products of iron or nonalloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated.

The eliminated GAEs on aluminum are as follows:

·       GAE.1.A: 7609.00.0000, Aluminum tube or pipe fittings (for example, couplings, elbows, sleeves).

·       GAE.4.A: 7604.21.0010, Aluminum bars, rods and profiles.

·       GAE.5.A: 7604.29.1010, Aluminum bars, rods and profiles.

·       GAE.9.A: 7601.20.9080, Unwrought aluminum.

·       GAE.10.A: 7607.11.6010, Aluminum foil (whether or not printed, or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.2 mm.

·       GAE.13.A: 7604.29.5090, Aluminum bars, rods and profiles.

The removal of GAE does not mean that the covered products are no longer eligible for an exclusion from Section 232 tariffs. It does mean that importers must apply for an exclusion using the 232 exclusions portal.

If you have questions about Section 232 duties or seeking exclusions from 232 duties do not hesitate to contact an attorney at Barnes Richardson, & Colburn LLP.