Tariffs. Customs. Trade Remedies

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Brazil

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On May 31, 2018, the President issued Proclamation of May 31, 2018 – Adjusting Imports of Aluminum into the United States (Aluminum Proclamation) and Proclamation of May 31, 2018 – Adjusting Imports of Steel into the United States (Steel Proclamation).  The Aluminum proclamation eliminates the exemptions from the 10% tariff granted to Canada, Mexico, Brazil and the EU on behalf of its Member States, in earlier proclamations. In addition, quotas are established for aluminum imports from Argentina and steel imports from Argentina and Brazil, in addition to the quotas previously established for S. Korea. Proclamation 9740 provided that the exemption afforded to steel articles from Canada, Mexico, and the member countries of the EU shall apply only to steel articles of such countries entered for consumption, or withdrawn from warehouse for consumption, through the close of May 31, 2018, at which time such countries shall be deleted from the article description of heading 9903.80.01 of the HTSUS.  The Steel Proclamation does not extend this exemption, so Canada, Mexico and EU countries will now be subject to the 25% steel tariffs.

On May 7, 2018, the U.S. Department of Commerce published notice of its periodic request for comments on subsidy programs provided by countries exporting softwood lumber or softwood lumber products to the United States.  Commenters have 30 days from today – or until June 6, 2018 – to submit written materials or commentary regarding (1) the country providing the subsidy; (2) the name of the subsidy program; (3) a brief description of the subsidy program; and (4) the government body or authority that provided the subsidy.   All comments should be filed via regulations.gov with reference to Docket No. ITA-2018-0002. 

On April 30, 2018, the President signed Presidential Proclamation Adjusting Imports of Aluminum into the United States.  The Proclamation states that the United States has agreed in principle with Argentina, Australia, and Brazil on satisfactory alternative means to address the threatened impairment to our national security posed by aluminum articles imported from these countries, so they will remain exempt from the tariff in Proc. 9704 until details are finalized. The United States is continuing discussions…

On April 26, 2018, US Customs and Border Protection (CBP) issued CSMS #18-000307 GSP Goods Subject to Section 201 Measures, which provides additional Information with respect to articles of Thailand or Philippines, which are covered by Section 201 safeguard remedies (certain solar cells, solar panels, washing machines, and washing machine parts). According to the CSMS:

As you may recall, early last year, President Trump issued two presidential memoranda instructing the U.S. Commerce Department to initiate an investigation into the national security implications of steel imports and aluminum imports into the United States.  If these so-called “section 232” (section 232 of the Trade Expansion Act of 1962, as amended) investigations determine that steel import and/or aluminum imports “threaten to impair the national security[,]” then the President can impose additional customs duties (among other things) on covered products.

On June 16, 2018, the Secretary of Commerce issued his reports to the President in both matters (unclassified versions of the reports are available here).   In each case, the Department of Commerce concluded that the quantities and circumstances surrounding steel and aluminum imports “threaten to impair the national security,” thereby opening the door to the imposition of import restraints.  Specifically, Commerce’s recommendations are as follows: