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United States increases tariffs on aluminum from Russia
March 2023
In brief
US Customs and Border Protection (CBP), in Cargo Systems Messaging Service (CSMS) # 55407022 issued on March 8, has provided guidance on the increased Section 232 tariffs on imports of aluminum and aluminum-derivative products from Russia.
Action item: Companies importing products potentially subject to the increased tariffs should review the CBP guidance to determine the possible impact on their import procedures and supply chains.
In detail
General
US President Donald Trump on March 8, 2018, issued Proclamation 9704 on Adjusting Imports of Aluminum into the United States, under Section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862), providing for additional import duties for aluminum articles, effective March 23, 2018. On January 24, 2020, President Trump issued Proclamation 9980 on Adjusting Imports of Derivative Aluminum Articles and Derivative Steel Articles into the United States, effective February 8, 2020.
On February 24, 2023, President Joe Biden issued Proclamation 10522 on Adjusting Imports of Aluminum into the United States, announcing that aluminum articles that are produced in Russia, and aluminum-derivative articles that are produced in Russia, will be subject to a 200% ad valorem tariff rate with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on March 10, 2023.
Further, imports of aluminum or aluminum-derivative articles, if any amount of primary aluminum used in the manufacture of the articles is smelted in Russia, or the articles are cast in Russia, will be subject to a 200% ad valorem tariff rate with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern time on April 10, 2023.
New guidance
Effective March 10, 2023, for goods subject to the latest proclamation, importers should report the following HTS classifications:
- 9903.85.67: “Aluminum articles that are the product of Russia, the foregoing under the terms of note 19(a)(vii)(A) to this subchapter and provided for in the tariff headings or subheadings enumerated in note 19(b) to this subchapter, except any exclusions that may be determined and announced by the Department of Commerce.”
- 9903.85.68: “Derivative aluminum articles that are products of Russia, when such derivative articles are provided for in the headings or subheadings enumerated in note 19(a)(iii) to this chapter, except any exclusions that may be determined and announced by the Department of Commerce.”
Action item: For aluminum and aluminum-derivative articles that are produced in Russia, admitted into a foreign trade zone under privileged foreign status prior to March 10, 2023, and entered for consumption on or after March 10, 2023, importers should contact the CBP Trade Remedy Branch for reporting instructions.
Effective April 10, 2023, for goods subject to the latest proclamation, importers should report the following HTSUS classifications:
- 9903.85.67: “Aluminum articles that are the product of Russia, or where any amount of primary aluminum used in the manufacture of the aluminum articles is smelted in Russia, or where the aluminum articles are cast in Russia, the foregoing under the terms of note 19(a)(vii)(A) to this subchapter and provided for in the tariff headings or subheadings enumerated in note 19(b) to this subchapter, except any exclusions that may be determined and announced by the Department of Commerce.”
- 9903.85.68: “Derivative aluminum articles that are products of Russia, or where any amount of primary aluminum used in the manufacture of the aluminum articles is smelted in Russia, or where the aluminum articles are cast in Russia, when such derivative articles are provided for in the headings or subheadings enumerated in note 19(a)(iii) to this chapter, except any exclusions that may be determined and announced by the Department of Commerce.”
While the scope of the action for March includes aluminum articles and derivatives that are a product of Russia, the change in April adds aluminum products and derivatives when any amount of primary aluminum was smelt, or the products were cast, in Russia, even when the end product may not be a product of Russia.
Action item: For aluminum and aluminum-derivative articles that are produced in Russia, or when any amount of primary aluminum used in the manufacture of the articles is smelted in Russia, or the articles are cast in Russia; and admitted into a foreign trade zone under privileged foreign status prior to April 10, 2023, and entered for consumption on or after April 10, 2023, importers should contact the CBP Trade Remedy Branch for reporting instructions.
Products entered under free trade agreements or preference programs
For products covered by the new proclamation that are eligible for special tariff treatment under any of the free trade agreements or preference programs listed in general note 3(c)(i) to the tariff schedule, the tariff provided in headings 9903.85.67 through 9903.85.701 will be collected in addition to any special tariff rate otherwise applicable under the appropriate tariff subheading, except where prohibited by law.
Drawback
No drawback will be available with respect to the additional Section 232 aluminum tariffs.
Exclusions
Imports of aluminum articles or derivative aluminum articles that are the product of Russia will not be eligible for any General Approved Exclusions as set forth in supplement number 3 to part 705 of CFR title 15 if entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Standard Time on March 10, 2023, and any imports of aluminum articles or derivative aluminum articles where any amount of primary aluminum used in the manufacture of the articles is smelted in Russia, or the articles are cast in Russia, shall not be eligible for any General Approved Exclusions as set forth in supplement number 3 to part 705 of CFR title 15 if entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on April 10, 2023.
Any other aluminum product exclusion granted by the Commerce Department that has not expired shall be valid under the modifications made by the new proclamation.
Other provisions
No claim for entry or for any duty exemption or reduction will be allowed for the aluminum products covered by the new proclamation under a provision of HTSUS chapter 99 that may set forth a lower rate of duty or provide duty-free treatment, taking into account information supplied by CBP, but any additional tariff prescribed in any provision of chapter 99 will be imposed in addition to the tariffs in headings 9903.85.67 through 9903.85.70.
Products covered by the new proclamation will not be eligible for any quota or tariff-rate quota. Shipments of any article that is otherwise eligible to be entered under a provision that is subject to quantitative limitations, if any amount of primary aluminum used in the manufacture of the article is smelted in Russia, or the articles are cast in Russia, should be entered under headings 9903.85.67 through 9903.85.70.
Note: Information and contacts related to Section 232 entry filing requirements are located on the trade remedy website on CBP.gov at https://www.cbp.gov/trade/remedies.
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