Senate Finance Leaders Ask Commerce Secretary to Improve Tariff Exclusion Process.

Wilbur_Ross_Official_Portrait

Department of Commerce Secretary Wilbur Ross

According to the Senate Finance Committee website, Chairman Orrin Hatch (R-Utah) and Ranking Member Ron Wyden (D-Ore.) urged the U.S. Department of Commerce Secretary Wilbur Ross to implement improvements to the Commerce Department’s process for excluding products from tariffs on steel and aluminum imports under Section 232 of the Trade Expansion Act of 1962.

In short, the letter voices concerns that the process lacks “basic due process and procedural fairness for stakeholders, especially American small businesses” and “appropriate mechanisms to prevent the Section 232 tariffs and product exclusion process from being abused for anticompetitive purposes.”

The Senators write the exclusion request process requires submission of a “substantial amount of information at a minute level of detail” for each imported product and may increase the burden for small businesses. Additionally the Senators state the request and objection forms allow for ambiguity by the Commerce department to approve or deny a product. Lastly, Commerce has not specified how to protect business proprietary information, how to address ex parte communications, how to ensure consistent determination across similar petitioners and objectors.

A full text of the letter can be viewed here (scroll to the bottom, full letter in italics).

If you have any questions about the 232 exclusion process, contact experienced trade attorney David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.

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