CSMS Message: 19-000271

Title:UPDATE Section 232 Canada and Mexico Foreign Trade Zone Guidance
Date:2019-05-30
To:abi,acee,acep,acer,air,cue,edi,export,newace,ocean,partner,rail,tran,truck
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UPDATE: Entry filing guidance for Section 232 FTZ entries covered by Canada and Mexico duty exemption

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. As of June 1, 2018, steel and aluminum articles from Canada and Mexico were subject to the Section 232 duties.

On May 19, 2019, Presidential Proclamations were issued amending Proclamation 9704 and Proclamation 9705, as amended, with regards to the Section 232 additional duty for steel and aluminum articles from Canada and Mexico. Effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on May 20, 2019, the Section 232 duty on imports of steel and aluminum articles with a country of origin of Canada or Mexico is no longer in effect.

Additionally, the Proclamations state:
[A]ny imports of aluminum articles or steel articles from Canada and Mexico that were admitted into a U.S. foreign trade zone under “privileged foreign status” as defined in 19 CFR 146.41, prior to 12:01 a.m. eastern daylight time on May 20, 2019, shall not be subject upon entry for consumption made after 12:01 a.m. eastern daylight time on May 20, 2019, to the additional 10 percent ad valorem rate of duty and 25 percent ad valorem rate of duty respectively imposed by Proclamation 9704 and Proclamation 9705, as amended.

GUIDANCE:
Instructions on submitting type 06 entries of steel and aluminum products with a country of origin of Canada or Mexico that were admitted under “privileged foreign status” as defined in 19 CFR 146.41, from June 1, 2018 until May 19, 2019, and entered for consumption after 12:01 a.m. eastern daylight time on May 20, 2019, are as follows:

Steel Products
• Do not report Harmonized Tariff Schedule (HTS) classification 9903.80.01.
• Report the regular Chapter 72 or 73 HTS classification for the imported merchandise.
• Submit the following product exclusion number in the Importer Additional Declaration Field (54 record) of the entry summary data: STL060000

Aluminum Products
• Do not report HTS classification 9903.85.01.
• Report the regular Chapter 76 HTS classification for the imported merchandise.
• Submit the following product exclusion number in the Importer Additional Declaration Field (54 record) of the entry summary data: ALU020000

Note that these product exclusion numbers are CBP-generated numbers to provide for Canadian and Mexican steel and aluminum articles to be entered for consumption from an FTZ without a Section 232 duty, per the Presidential Proclamations. These product exclusion numbers do not correspond to any Section 232 product exclusion granted by the U.S. Department of Commerce.

Do not use these product exclusion numbers for any other imports or entry types except as specified above.

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); the March 22, 2018 Presidential Proclamations on Adjusting Imports of Steel and Aluminum into the United States, 83 FR 13355 and 83 FR 13361 (March 28, 2018); and the April 30, 2018 Proclamations on Adjusting Imports of Steel and Aluminum into the United States, 83 FR 20683 and 83 FR 20677 (May 7, 2018); the May 31, 2018, Proclamations on Adjusting Imports of Steel and Aluminum into the United States, 83 FR 25849 and 83 FR 25857 (June 5, 2018); and the May 19, 2019 Proclamations on Adjusting Imports of Steel and Aluminum into the United States.

Also see Frequently Asked Questions at: https://www.cbp.gov/trade/programs-administration/entry-summary/232-tariffs-aluminum-and-steel.

Questions related to Section 232 entry filing requirements should be emailed to traderemedy@cbp.dhs.gov. Questions from the importing community concerning ACE rejections should be referred to their Client Representative.

Related CSMS No. 18-000362, 19-000252, 19-000257