The President issued two Proclamations making changes to the exclusion of Mexican origin aluminum and steel from Section 232 duties, effective July 10, 2023. Mexico had been excluded from 10 percent Section 232 duties on aluminum and aluminum derivatives, and 25 percent duties on steel and steel derivatives.
Aluminum:
Due to Mexico lacking primary aluminum smelting capabilities the U.S. is making changes to identify this. Mexican origin aluminum will require the countries of smelt and cast. To remain free from Section 232 duties the aluminum must not contain primary or secondary smelting, nor most recent casting in China, Russia, Belarus, or Iran. A certificate of analysis must accompany the entry.
New Harmonized Tariff Schedule (HTS) numbers will be used for Mexican origin aluminum that is primary or secondary smelt, or most recent cast in China, Russia, Belarus, or Iran, are 9903.85.71 for aluminum and 9903.85.72 for aluminum derivatives, both with a 10 percent Section 232 duty rate.
Also note that Mexican origin aluminum containing any primary aluminum smelt or cast in Russia will continue to be subject to 200 percent duties noted in Proclamation 10522.
Steel:
Mexican origin steel will require the countries of melt and pour. To remain free from Section 232 duties the steel articles and derivatives must be melted and poured in Mexico, Canada, or the United States. Importers will need to provide U.S. Customs and Border Protection (CBP) information to identify the countries where the steel used in the manufacture of steel articles are melted and poured.
New HTS numbers will be used for Mexican origin steel that is not melted and poured in Mexico, Canada or the U.S. are 9903.81.85 for steel and 9903.81.86 for steel derivatives, both with a 10 percent Section 232 duty rate.
Imports of Mexican origin aluminum or steel articles that were admitted into a U.S. foreign trade zone (FTZ) under ‘privileged foreign status’ prior to July 10, 2024, shall be subject upon entry to the provisions of these Proclamations.
These actions were done to due to increased imports of Mexican origin aluminum and steel articles, and is meant to restrain imports, limit transshipments, and discourage excess Mexican capacity and production.
The proclamation states CBP shall implement requirements for smelt and cast for aluminum and melt and pour for steel as soon as practicable, and that failure to comply may result in applicable remedies or penalties.
Please contact your Livingston account manager with any questions regarding Section 232 duties.