Section 232 Updates – Steel and Aluminum Derivatives

Posted by Norman Lubeck
Blog originally posted on 14/04/2021 06:30 AM

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Do you trade in derivative aluminum and steel products? Do your imports include stranded wire, nails, tacks, and bumper stampings? If so, you have been paying Section 232 duties in the amount of 10% (aluminum) or 25% (steel) for the last few years, and need to pay attention to what is happening at the Court of International Trade regarding former President Trump’s Proclamation 9980.

This supplement to the Section 232 duties already imposed on aluminum and steel was issued on January 24, 2020, and listed articles made of aluminum and steel that were also to be subject to additional duties. Imports of these so-called “derivative” products were believed to be undermining the national security of the United States.

However, on April 5, 2021, the CIT agreed with an importer’s challenge to this proclamation. The Court found that Proclamation 9980 was invalid as contrary to law because it was issued after the President’s delegated authority to impose duties on derivatives of steel products had expired. The Court ordered that duties paid by the importer because of the Proclamation be refunded, whether the entries were liquidated or not.

While the government can still appeal this ruling, the refund implications are significant. Importers may want to identify those entries where they paid duties on derivative aluminum and steel products, and consider filing protests or post-summary corrections based on the finding that Proclamation 9980 was action outside of delegated authority, that it was untimely, and that it was invalid as contrary to law. Tradewin will be happy to assist in this effort.

PrimeSource Bldg. Prods., Inc. v. United States, slip op. 21-36 (US CIT, April 5, 2021)

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Topics: Tradewin, Sourcing, Trade Compliance

Blog originally posted on 14/04/2021 06:30 AM

Norman Lubeck

Written by Norman Lubeck

Norm joined Tradewin in 2011, continuing a successful career in international logistics and trade compliance that began in 1987. He has held the position of Trade Counsel for a logistics management firm and managed the Trade Compliance departments for several multinational corporations. Norm's technical background includes Focused Assessment, C-TPAT implementation, Free Trade Agreement compliance, and expertise in a broad spectrum of international trade topics. Norm holds a B.A. from Middlebury College and a J.D. from Suffolk Law School. He is a licensed customs broker and is a member of the Massachusetts Bar.