close
Share with your friends

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.

1000

Related content

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  • Effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on May 20, 2019, the Section 232 duty on imports of steel and aluminum articles with a country of origin of Canada or Mexico is no longer in effect.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
Partner and Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
T: 212-954-3094
E: labad@kpmg.com

Irina Vaysfeld
Principal
T: 212-872-2973
E: ivaysfeld@kpmg.com

Amie Ahanchian
Managing Director
T: 202-533-3247
E: aahanchian@kpmg.com

Robert Waldrop
Principal
T: 212-954-8117
E: rwaldrop@kpmg.com

Gisele Belotto
Managing Director
T: 305-913-2779
E: gbelotto@kpmg.com

Christopher Young
Principal
T: 312-665-3229
E: christopheryoung@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

George Zaharatos
Principal
T: 404-222-3292
E: gzaharatos@kpmg.com

Jessica Libby
Managing Director
T: 612-305-5533
E: jlibby@kpmg.com

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal