On Monday, May 9, 2022, the U.S. Department of Commerce announced the temporary suspension of the 25% Section 232 tariffs on imports of Ukrainian steel for one year.
GUIDANCE
Effective June 1, 2022, imports of steel articles and derivative steel articles that are products of Ukraine, as referenced in A Proclamation: Adjusting Imports of Steel Into the United States (Ukraine) | The White House, will not be subject to additional duties under HTSUS subheading 9903.80.01 and 9903.80.03 from 12:00 a.m. June 1, 2022, through 11:59 p.m. on June 1, 2023.
The press release stressed the importance of supporting export opportunities for the Ukrainian steel industry, which employs 1 in 13 locals and has resumed production in spite of the ongoing war.
“Steelworkers are among the world’s most resilient—whether they live in Youngstown or Mariupol. We can’t just admire the fortitude and spirit of the Ukrainian people—we need to have their backs and support one of the most important industries to Ukraine’s economic well-being. For steel mills to continue as an economic lifeline for the people of Ukraine, they must be able to export their steel. Today’s announcement is a signal to the Ukrainian people that we are committed to helping them thrive in the face of Putin’s aggression, and that their work will create a stronger Ukraine, both today and in the future.”
UNITED STATES SECRETARY OF COMMERCE GINA M. RAIMONDO
The Department of Commerce also included a summary of its other actions in support of Ukraine:
Since Russia invaded Ukraine on February 24, the Department of Commerce has launched a series of new export control restrictions on Russia in partnership with three dozen allies, including 27 EU member states, Canada, the United Kingdom, Australia, New Zealand, Japan, South Korea, Switzerland, Iceland, and Norway.
- The multilateral coordination on export controls and other areas has been impressive and led to swift development and implementation of powerful restrictions that are having a serious impact on Russia’s ability to sustain its aggression.
- Commerce has added 260 parties in Russia, Belarus, and multiple other countries to the Entity List. These entities have been involved in, contributed to, or otherwise supported the Russian security services, military and defense sectors, and military and/or defense research and development efforts. (BIS)
- U.S. exports to Russia in categories of items subject to new U.S. export licensing requirements have decreased 97% by value as compared to the same time period in 2021 (February 24-April 29). (BIS data)
- Overall U.S. exports to Russia have decreased approximately 79% by value over the same time period in 2021. (BIS data)
- Public reports indicate Russia’s two largest tank manufacturing facilities have been forced to shut down, due to an inability to access the necessary parts and equipment. (Wall Street Journal, 4/25)
- Russia is facing a critical shortage of precision-guided missiles. (Financial Times, 4/30)
Additional information on Commerce’s actions is available on the Bureau of Industry and Security’s website at: https://www.bis.doc.gov/index.php/policy-guidance/country-guidance/russia-belarus
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