ITC Issues Revision 5 to Tariff Schedule With Section 232 Changes
The International Trade Commission issued Revision 5 to the Harmonized Tariff Schedule late on May 31. Most changes are intended to implement the end of temporary country exemptions for the European Union, Canada and Mexico and new agreements subjecting steel from Argentina and Brazil, and aluminum from Argentina, to quotas. Quotas on steel are also changed to implement a new lower threshold for three-month quota provisions. All changes take effect June 1.
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Tariff Provisions Amended to Reflect Changes to Section 232 Steel Duties
Tariff provisions implementing Section 232 tariffs on iron and steel products are amended to reflect the end of temporary exemptions for Canada, Mexico and the EU on June 1. Subheading 9903.80.01 for merchandise subject to the 25 percent tariff is amended so that it now refers to all countries except Australia, Argentina, Brazil and South Korea. Quotas that form part of the exemption agreements for Argentina and Brazil (on top of previously existing quotas on South Korean steel) are implemented as follows:
Countries added to steel quota. The superior text describing subheadings 9903.80.05 through 9903.80.58 for merchandise subject to iron and steel quotas is amended so that products from Argentina and Brazil are classifiable in those quota subheadings, in addition to South Korea.
Steel quota threshold. Paragraph (e) of U.S. Note 16 to Chapter 99, which outlines the quota on iron and steel products that forms part of the exemption agreements for Brazil, Argentina and South Korea, is amended so that the maximum quota amount for any three-month period is over 500,000 kg and over 30% of the total annual aggregate maximum quantity for the relevant country. Previously the note only said the maximum was 30% of the annual quantity, and did not mention a 500,000 kg threshold.
New Quotas Added for Section 232 Aluminum Tariffs
Similarly, tariff provisions for Section 232 duties on aluminum products are amended to eliminate the end of temporary exemptions for Canada, the EU and Mexico, which came to an agreement on steel but not on aluminum. Subheading 9903.85.01 for merchandise subject to the 10 percent tariff is amended so that it now refers to all countries except Australia and Argentina (Brazil reached agreement on steel but not on aluminum). A new quota on aluminum products is implemented as follows to reflect the agreement reached with Argentina:
New subheadings for in-quota merchandise. Two new subheadings, 9903.85.05 for unwrought aluminum and 9903.85.06 for wrought aluminum, are added to the tariff schedule for in-quota aluminum. The superior text says the subheadings apply to merchandise from Argentina for quantities beginning Jan. 1, 2018.
Conforming changes to notes. U.S. Notes 19(b) and (d) are amended to reflect the addition of the two new subheadings for in-quota aluminum from Argentina, on top of the existing subheading for merchandise subject to the 10 percent duty.
New note for quota. New U.S. Note 19(e) is added to the tariff schedule to describe the quota applicable to aluminum products from Argentina. The note mirrors the language for the Section 232 steel quota, setting the maximum quota amount for any three-month period of over 500,000 kg and over 30 percent of the total annual aggregate maximum quantity for the relevant country.