EU approves counter tariffs against US steel and aluminum.

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In response to US tariffs on steel and aluminum, all members of the EU unanimously approved a plan to impose import duties on $3.3 billion worth of US products of steel and aluminum.

Further details will be released in 3 days as they are available and duties are expected to be in place later this month or early July (the next scheduled meeting is June 20th).

Questions, call David Hsu at 832-896-6288 or by email at dhsu@givensjohnston.com.

 

It’s official – US issues trade tariffs on steel and aluminum from the EU, Canada and Mexico.

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The Whitehouse issued two presidential proclamations that placed 25% steel and 10% aluminum tariffs on imports from the European Union, Canada and Mexico.

The full proclamations can be found here for steel and here for aluiminum.

If you have any questions on how these new tariffs will impact your business or what options you may have – contact experienced antidumping attorney David Hsu at 832-896-6288 or by email at dhsu@givensjohnston.com for a free evaluation.

Commerce Department issues affirmative final circumvention ruling on steel from Vietnam.

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According to a May 21, 2018 news release on the U.S. Department of Commerce (Commerce) website – the Commerce department announced an affirmative ruling on corrosion-resistant steel (CORE) and certain cold-rolled steel flat products (cold-rolled steel) imported from the Socialist Republic of Vietnam (Vietnam) produced from substrate originating in the People’s Republic of China (China) are circumventing the antidumping and countervailing duty (AD/CVD) orders on CORE and cold-rolled steel imported from China.

In order to avoid payment of duties, some manufacturers ship goods to another country not subject to duties, and from there send the goods to the United States. This practice is known as “transshipment” and we will likely hear more reports of transshipment as manufacturers look for ways to avoid the steel and aluminum duties.

While the steel here is produced in Vietnam, Commerce found circumvention of AD/CVD orders did occur because the subject merchandise is the same class or kind of merchandise subject to existing orders and completed or assembled in a third party country prior to importation to the US.

Commerce will notify Customs and Border Protection (CBP) to continue collecting cash deposits on imports of CORE and cold-rolled steel produced in Vietnam using Chinese-origin materials at an AD rate of 199.43 percent and CVD rate of 39.05 percent.

CBP will also collect AD and CVD cash deposits on imports of cold-rolled steel produced in Vietnam using Chinese-origin substrate at rates of 199.76 percent and 256.44 percent, respectively.

If you have any questions about this or any other AD/CVD order, call experienced antidumping attorney David Hsu at 832-896-6288 or email at dhsu@givensjohnston.com.

Trump delays decision on steel and aluminium tariffs.

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A little background – back in March 2018, President Trump imposed worldwide tariffs of 25% on imports of steel and 10% on aluminum. Countries such as Canada, Mexico and the European Union were temporarily exempted from these tariffs.

Later in April, the US gave South Korea a permanent exemption from these tariffs in exchange for a 30% reduction of SK exports of steel to the United States.

One country not exempted was China, and as posted previously on this blog, China retaliated with their own duties on many US imports to the middle kingdom.

Fast forward to May 1st and the current administration has extended negotiations on steel and aluminium tariffs for an additional 30 days with Canada, Mexico and the European Union. Tentative agreements have been reached with Argentina, Brazil and Australia.

Check back here for more details as they become available.

EU wants to participate in the US-China steel dispute at the WTO.

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As previously posted on this blog, China requested consultations with the WTO regarding the US import tariffs on steel and aluminum. Requesting a consultation with the WTO is the first stage in the dispute process with the WTO and now the EU asked on April 23rd to join the dispute.

It is important to note that one week from now, President Trump will decide whether these tariffs would apply to imports from the EU. A temporary exemption from the 25% duty on steel and 10% duty on aluminum was granted for the EU until May 1st. Temporary exemptions were also granted to Canada, Mexico, Australia, Argentina and Brazil. South Korean imports have been exempted indefinitely.

In addition to the EU, Hong Kong, Russia, India and Thailand have also filed requests to join the consultations. Check back for more information as it becomes available.

 

Renegotiated KORUS FTA results in changes more favorable to US companies.

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According to the Office of the United States Trade Representative website, the Trump administration has negotiated additional favorable terms of the United States – Korea Free Trade Agreement (KORUS) that went into effect in 2012.

Fulfilling part of his campaign promises, President Trump has re-negotiated the KORUS with these (and many more) favorable changes to US companies:

1. Korea will double the number of US automobile exports to 50,000 cars per manufacturer per year.

2. US automobile exports to Korea that meet US safety standards can enter the Korean market without further modification. This lowers the cost of US cars being sold in Korea as additional testing and modifications are not needed before the US cars are sold in the marketplace.

3. Korea will recognize US standards for auto parts to service US vehicles in Korea, this reduces the labeling burden for US parts manufacturers.

4. Korea will amend their Premium Pricing Policy for Global Innovative Drugs to ensure non-discriminatory and fair treatment for US pharamceutical exports.

5. Korea imports of steel products into the US will be subject to a product-specific quota equal to 70% for the average annual import volume of such products during the years 2015-2017, resulting in reduction of Korean steel shipments to the US.

If you have any questions regarding the KORUS or other trade and customs law issues, feel free to contact David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.

South Korea allows for increases on US auto imports in exchange for U.S. Steel tariff exemption.

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According to Reuters, the US and South Korea agreed on Monday (March 27th, 2018) to revise the KORUS bilateral free trade deal. As part of the deal, South Korea would improve access to U.S. automakers and in exchange the US would exempt Korean steel from the new Section 232 duty rates.

President Trump has always claimed the current KORUS agreement was “horrible” and lead to a doubling of the U.S. goods trade deficit with South Korea since 2012. While the terms have not yet been announced, the agreement likely makes South Korea is the first US ally to receive an indefinite exemption but still subject to quotas.

In addition to South Korea, Trump has temporarily excluded other major US trading partners Canada, Mexico, Australia and the European Union from higher U.S. import duties on steel and aluminium.

Check back for the latest news and as always, please contact David Hsu at 832.896.6288 or dhsu@givensjohnston.com for all your trade and international law questions.

Section 232 – Duties do not apply to goods coming from these countries until May 1, 2018.

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Until May 1, 2018, the Section 232 duties do not apply to goods coming from:

• Argentina;

• Australia;

• Brazil;

• Canada;

• Mexico;

• the member countries of the European Union; and

• South Korea.

After that time, the President will review whether to continue exempting these countries from the order.

Furthermore, the most recent customs message also says that admissions into FTZs can only be made with a privileged foreign status, which closes the previous FTZ loophole.

Any Section 232 questions? Call experienced trade and customs attorney David Hsu at 832.896.6288, or by email at dhsu@givensjohnston.com.

Cargo Systems Messaging Service – Additional Duties on Imports of Steel and Aluminum under Section 232 – March 22, 2018.

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U.S. Customs and Border Protection (CBP) released Cargo Systems Messaging Service Number 18-000240 with additional information regarding the imports of steel and aluminum under Section 232.

If you have any questions regarding this, please contact David Hsu at 832.896.6288 or by email at dhsu@givensjohnston.com.

CSMS #18-000240

Title:
Additional Duty on Imports of Steel and Aluminum Articles under Section 232 Date: 3/22/2018 11:39:25 PM To: Automated Broker Interface, ACE Portal Accounts, ACE Reports, Air Manifest, New ACE Programming, Ocean Manifest, Partner Government Agencies, Rail Manifest, Trade Policy Updates, Truck Manifest  Additional Duty on Imports of Steel and Aluminum Articles under Section 232 of the Trade Expansion Act of 1962

BACKGROUND:
On March 8, 2018, the President issued Proclamations 9704 and 9705 on Adjusting Imports of Steel and Aluminum into the United States, under Section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862), providing for additional import duties for steel mill and aluminum articles, effective March 23, 2018.  See the Federal Register, 83 FR 11619 and 83 FR 11625, March 15, 2018.  On March 22, 2018, the President issued Proclamations on Adjusting Imports of Steel and Aluminum into the United States.

These duty requirements are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on March 23, 2018.

COMMODITY:
Steel mill and aluminum articles, as specified in the Presidential Proclamations.

COUNTRIES COVERED:
March 23, 2018 through April 30, 2018:  All countries of origin except Canada, Mexico, Australia, Argentina, South Korea, Brazil and  member countries of the European Union (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom).

As of May 1, 2018:  All countries of origin.

Please note this is based on the country of origin, not the country of export.

ENTRY SUMMARY FILING INSTRUCTIONS:
Steel Products In addition to reporting the regular Chapters 72 & 73 of the Harmonized Tariff Schedule (HTS) classification for the imported merchandise, importers shall report the following HTS classification for imported merchandise subject to the additional duty:9903.80.01 (25 percent ad valorem additional duty for steel mill products) Aluminum Products In addition to reporting the regular Chapter 76 of the HTS classification for the imported merchandise, importers shall report the following HTS classification for imported merchandise subject to the additional duty: 9903.85.01 (10 percent ad valorem additional duty for aluminum products)

Importers and filers failing to submit the required Chapter 99 HTS classifications with the entry summary information for imports under the specified Chapter 72, 73, and 76

HTS classifications for the covered countries of origin will receive the following reject messages:

E1 IQ10    LINE SUBJECT TO QUOTA

E1 FQ09   QUOTA NOT ALLOWED FOR ENTRY TYPE

E1 FQ05   BANNED IMPORT

E1 RF998 TRANSACTION DATA REJECTED

Note:  Quota is not in effect, but this ACE functionality is being used to validate entry summary transmissions and reject when validations determine the data is missing the required chapter 99 number.

Importers or filers receiving one of the reject messages above, who have researched their classification and dates to confirm the entry summaries were incorrectly rejected, should contact their assigned Client Representative with the results of their review.

Additional Information
Any steel or aluminum article subject to the Section 232 duties that is admitted into U.S. foreign trade zones on or after 12:01 a.m. eastern daylight time on March 23, 2018, must be admitted as “privileged foreign status” as defined in 19 CFR 146.41, and will be subject upon entry for consumption to any ad valorem rates of duty related to the classification under the applicable HTSUS subheading.

Any steel or aluminum article that was admitted into U.S. foreign trade zones under “privileged foreign status” as defined in 19 CFR 146.41, prior to 12:01 a.m. eastern daylight time on March 23, 2018, will likewise be subject upon entry for consumption to any ad valorem rates of duty related to the classification under applicable HTSUS subheadings imposed by the Proclamations.

The merchandise covered by the additional duties may also be subject to antidumping and countervailing duties.

CBP will issue additional guidance on entry requirements for any products excluded from these measures, as soon as information is available.  CBP will also issue updated guidance if there are any changes to these measures, including any changes to exempted countries and any new requirements, such as quota requirements.

FOR FURTHER INFORMATION:For more information, please refer to the Presidential Proclamations on Adjusting Imports of Steel and Aluminum into the United States, Federal Register, 83 FR 11619 and 83 FR 11625, March 15, 2018; and the March 22, 2018 Presidential Proclamations on Adjusting Imports of Steel and Aluminum into the United States.

Questions related to Section 232 entry filing requirements should be emailed to adcvdissues-hq@cbp.dhs.gov.

Questions from the importing community concerning ACE rejections should be referred to their Client Representative.

Section 232 Exclusion Requests.

 

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The Bureau of Industry and Security (BIS) has released the rules and procedures to apply for a Section 232 exclusion request for imports of steel or aluminum. Additionally, the BIS also released guidelines to object to any exclusion requests.

Contact David Hsu at 832.896.6288 or dhsu@givensjohnston.com to get started today on the exclusion request process.