On Tuesday, March 22, 2022, the United States Secretary of Commerce, Gina M. Raimondo, and United States Trade Representative, Katherine Tai, announced a new agreement with the United Kingdom that replaces Section 232 tariffs on steel and aluminum products imported from the UK with a historically-based tariff-rate quota (TRQ) starting June 1, 2022.
Section 232 tariffs were set at 25 percent for steel and 10 percent for aluminum. Once implemented the UK will also lift retaliatory tariffs on over $500 million worth of U.S. exports such as distilled spirits, agriculture products and consumer goods.
9 THINGS STEEL & ALUMINUM SHIPPERS NEED TO KNOW
1. TRQ Amount
- The aggregate annual import volume for steel is set at 0.5 million metric tons (MMT) under 54 product categories.
- The aggregate annual import volume for aluminum is set at 0.9 thousand metric tons (TMT) for unwrought aluminum under 2 product categories and 11.4 TMT for semi-finished (wrought) aluminum (other than foil – 7607) under 12 product categories.
2. Derivative Products
- Imports of derivative articles of steel and aluminum will not be subject to Section 232 duties.
3. Eligibility
- Steel imports must be “melted and poured” in the UK and have a UK country of origin
- Steel imports which are melted and poured in the UK but further processed in the EU, (EU country of origin) and subsequently imported into the United States may be eligible under the quota; not to exceed 37.8 thousand metric tons (TMT) annually.
- Semi-finished (wrought) aluminum products must not contain primary aluminum from the People’s Republic of China, the Russian Federation or the Republic of Belarus.
4. Entry Documentation
- An importer must provide a Certificate of Analysis for each aluminum product entered into the United States.
5. Exclusions
- Will remain processed through Section 232 of the Trade Expansion Act of 1962.
6. Section 232
- All Section 232 products entering above-quota will continue to be subject to a Section 232 duty of 25 percent and 10 percent for steel and aluminum products, respectively, if not subject to an exclusion.
7. Calculation
- The TRQ will be calculated for each year and administered on a quarterly basis.
- Unused TRQ volume can roll over up to 4 percent.
8. Review
- The United States will conduct an annual review of the TRQ to calculate the level of U.S. steel demand (apparent consumption) in the previous year.
- For aluminum, the TRQ will be calculated and administered on a semi-annual basis.
9. Utilization
- Starting September 1, 2022, the U.S. will evaluate utilization and administration of the TRQ every three months.
A full list of aluminum and steel products can be found in the Annex of the announcement.
Department of Commerce: Announcement of Actions on UK Imports Under Section 232
“By allowing for a flow of duty-free steel and aluminum from the U.K., we further ease the gap between supply and demand for these products in the United States. And by removing the U.K.’s retaliatory tariffs, we reopen the British market to beloved American products.”
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