U.S. one-year suspension of Section 232 duties on imports of steel articles from Ukraine

Functionality for suspension of Section 232 duties on steel and derivative steel articles that are products of Ukraine will be available June 1, 2022

Imports of steel articles from Ukraine

31 May 2022

U.S. Customs and Border Protection (CBP) today issued a release implementing a one-year suspension of Section 232 duties on imports of steel articles from Ukraine.

According to today’s CBP release:

The functionality for the suspension of Section 232 duties on steel and derivative steel articles that are products of Ukraine will be available in the Automated Commercial Environment (ACE) as of June 1, 2022.
Effective June 1, 2022, imports of steel articles and derivative steel articles that are products of Ukraine will not be subject to additional duties under Harmonized Tariff Schedule of the United States (HTSUS) subheading 9903.80.01 and 9903.80.03 for the one-year period (from 12:00 a.m. June 1, 2022, through 11:59 p.m. on June 1, 2023).
Any imports of steel articles that are products of Ukraine admitted into a U.S. foreign trade zone under "privileged foreign status” before June 1, 2022, will be subject upon entry for consumption made on or after 12:01 a.m. eastern daylight time on June 1, 2022, to the 25% rate of duty.

Background

The U.S. president in March 2018 issued a proclamation under Section 232 of the “Trade Expansion Act of 1962” (as amended), adjusting the imports of steel articles by imposing a 25% ad valorem tariff and certain quantitative restrictions on such articles imported from countries (except Canada and Mexico).
The U.S. president in January 2020 issued a proclamation 9980 adjusting the tariffs imposed by previous proclamations to apply to the derivatives of aluminum articles and steel articles.
The U.S. president on May 27, 2022, issued a proclamation suspending the Section 232 duties on imports of steel and derivative steel articles from Ukraine for one year, effective June 1, 2022. Read the presidential proclamation [PDF 193 KB] as released on June 1, 2022, for publication in the Federal Register.

Contact a professional with KPMG’s Trade & Customs services:

Doug Zuvich Partner and Global Practice Leader E: dzuvich@kpmg.com	John L. McLoughlin Principal and East Coast Leader E: jlmcloughlin@kpmg.com
Andy Siciliano Partner and National Practice Leader E: asiciliano@kpmg.com	Steve Brotherton Principal and Global Export and Sanctions Leader E: sbrotherton@kpmg.com
Luis (Lou) Abad Principal, Washington National Tax E: labad@kpmg.com	Irina Vaysfeld Principal E: ivaysfeld@kpmg.com
Amie Ahanchian Principal E: aahanchian@kpmg.com	Christopher Young Principal E: christopheryoung@kpmg.com
Gisele Belotto Principal E: gbelotto@kpmg.com	George Zaharatos Principal E: gzaharatos@kpmg.com
Andy Doornaert Managing Director E: adoornaert@kpmg.com	Jessica Libby Principal E: jlibby@kpmg.com

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