Is Your Business Prepared for New Tariffs on Aluminum and Steel Effective March 23?

On March 15, 2018, Presidential Proclamations 9704 (aluminum) and 9705 (steel) were published in the Federal Register Vol. 83. No. 51, at pages 11,619, etc., and pages 11,625, etc., respectively. As many are aware from continued coverage in the press, these proclamations are predicated upon national security concerns of the United States and the reports by the secretary of commerce under section 232 of the Trade Expansion Act of 1962 (19 U.S.C. 1862). Mexico and Canada are excluded from the assessments for now in consideration of ongoing negotiations relating to the North American Free Trade Agreement (NAFTA).

A 10 percent ad valorem duty has been set for aluminum articles as defined in the proclamation relating to that category of product and a 25 percent ad valorem duty has been set for steel articles as defined in the second of these proclamations.

The effective date for the application of these duty rates is midnight Eastern time on March 23, 2018, with respect to goods entered into or withdrawn from warehouses for consumption on or after that date and time. These rates are in addition to any other duties, fees, exactions and charges applicable to such imported products. Such additional charges may include items such as harbor maintenance fees, merchandise processing fees and taxes, as appropriate.

Read the rest of this Alert on the Duane Morris website.