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U.S. guidance, 10% additional customs duty on imports of aluminum from Canada

U.S. guidance, 10% additional customs duty

U.S. Customs and Border Protection (CBP) today issued a release concerning the additional customs duty imposed on imports of certain aluminum articles from Canada. A presidential proclamation (August 2020) announces aluminum articles imported under Harmonized Tariff Schedule of the United States (HTSUS) subheading 7601.10 and that are the products of Canada will be subject to an additional 10% ad valorem rate of duty, effective August 16, 2020.

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According to the CBP release—CSMS #43654621—the increased rates of duty on certain aluminum articles that are the products of Canada are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 16, 2020. The functionality for the acceptance of the additional duties on aluminum articles that are the products of Canada will be available in the Automated Commercial Environment (ACE) as of 7 am eastern standard time, August 16, 2020.

In addition to reporting the regular HTSUS classification under subheading 7601.10, importers are directed to report the following HTSUS classification for imported merchandise subject to the additional duty:

  • 9903.85.21 (10% ad valorem duty rate for non-alloyed unwrought aluminum products of Canada, provided for in subheading 7601.10)

Any imports of non-alloyed unwrought aluminum articles that are the products of Canada provided for in subheading 7601.10 and admitted into a U.S. foreign trade zone on or after 12:01 a.m. eastern daylight time on August 16, 2020, are to be admitted only as “privileged foreign status” and upon entry for consumption on or after August 16, 2020, will be subject to the 10% ad valorem rate of customs duty. Those subject items that were previously admitted into a U.S. foreign trade zone under “privileged foreign status” will be subject to the 10% additional customs duty upon entry for consumption.

There are separate guidelines for non-alloyed unwrought aluminum articles manufactured in a U.S. foreign trade zone and for products that are eligible for special tariff treatment under any of the free trade agreements or preference programs.

No drawback will be available with respect to the additional customs duties on aluminum imported from Canada. Any exclusion of aluminum articles of Canada granted by the Secretary of Commerce that has not expired will continue to be valid under the modifications made by the presidential proclamation.

No claim for entry or for any duty exemption or reduction will be allowed for the aluminum products under a provision of HTSUS chapter 99 that may set forth a lower rate of duty or provide duty-free treatment.


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

Steve Brotherton
Principal and Global Export and Sanctions Leader
T: 415-963-7861
E: sbrotherton@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
Principal
T: 202-533-3247
E: aahanchian@kpmg.com

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

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

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

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

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

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