U.S. guidance for free trade zones; steel and aluminum imports
U.S. guidance for free trade zones; steel and aluminum
U.S. Customs and Border Protection (CBP) today issued a release concerning entry filings for “Section 232” free trade zone (FTZ) entries covered by Canada and Mexico duty exemptions.
As explained in the CBP release—CSMS #19-000271—concerning imports of steel and aluminum from Canada and Mexico:
- In March 2018, presidential proclamations 9704 and 9705 on adjusting imports of steel and aluminum into the United States, under Section 232 of the Trade Expansion Act of 1962, providing for additional import duties of 10% and 25% for steel mill and aluminum articles.
- As of June 1, 2018, steel and aluminum articles from Canada and Mexico were subject to the Section 232 duties.
- In May 2019, presidential proclamations amended Proclamation 9704 and Proclamation 9705 with regards to the Section 232 additional duty for steel and aluminum articles from Canada and Mexico.
- Effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on May 20, 2019, the Section 232 duty on imports of steel and aluminum articles with a country of origin of Canada or Mexico is no longer in effect.
Today’s CBP guidance provides the following instructions on submitting type 06 entries of steel and aluminum products with Canada or Mexico as the country of origin (admitted under “privileged foreign status” from June 1, 2018 until May 19, 2019, and entered for consumption after 12:01 a.m. eastern daylight time on May 20, 2019):
Steel products
- Do not report Harmonized Tariff Schedule (HTS) classification 9903.80.01.
- Report the regular Chapter 72 or 73 HTS classification for the imported merchandise.
- Submit the following product exclusion number in the Importer Additional Declaration Field (54 record) of the entry summary data: STL060000
Aluminum products
- Do not report HTS classification 9903.85.01.
- Report the regular Chapter 76 HTS classification for the imported merchandise.
- Submit the following product exclusion number in the Importer Additional Declaration Field (54 record) of the entry summary data: ALU020000
The CBP release notes that these product exclusion numbers are CBP-generated numbers to provide for Canadian and Mexican steel and aluminum articles to be entered for consumption from an FTZ without a Section 232 duty.
For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:
Doug Zuvich |
John L. McLoughlin |
Andy Siciliano |
Luis (Lou) Abad |
Irina Vaysfeld |
Amie Ahanchian |
Robert Waldrop |
Gisele Belotto |
Christopher Young |
Andy Doornaert |
George Zaharatos |
Jessica Libby |
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