By: Brian Walczyk, Compliance Manager, TradeInsights, LCB, CCS

In a proclamation issued on April 2 the Trump Administration has adjusted how steel, aluminum, and copper products subject to Sec 232 will be handled – all starting on 12:01 AM EST April 6.

The proclamation is composed of four annexes and a series of new rules for how derivative articles are to be handled.

Goods will no longer have the Sec 232 tariff applied to partial value as recommended by “the Secretary recommended that I [President Trump] clarify that ad valorem tariffs apply to the full customs value of metal articles, and he recommended that the tariffs apply to the full customs value of derivative products.”

Articles outside of chapters 72, 73, 74, and 76 will have a new de minimis exemption from the tariffs, if the weight of the applicable metal is less than 15% of the weight of the imported article. See Annex IV “16(c)”.

The inclusions process for steel, aluminum, and copper has also been terminated in this proclamation; however, it does leave open the ability to add to the order at the administration’s discretion under advisement of the Secretary and Trade Representative.

Annex I-A

50% Sec 232 Tariff on Full Value; Steel, Aluminum, and Copper

Annex I-B

25% Sec 232 Tariff on Full Value; Steel, Aluminum, and Copper

Annex II

List of Removed Items from Sec 232 Steel and Aluminum Derivatives

Annex III

Temporary Reduction List for Sec 232 Steel and Aluminum Derivatives

Annex IV

Composite of Updated Language for Annex I, II, III, in the US HTS

A CSMS message has yet to be published by US CBP.

We will continue to monitor and provide updates on this situation. Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions, and you can always follow us on our website www.valexander.com for updates on this and other topics.