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CBP clarifies duties on steel, aluminum for foreign trade zones

U.S. CBP clarifies duties for foreign trade zones

U.S. Customs and Border Protection (CBP) today issued a release concerning implications for foreign trade zones of the additional customs duty on imports of steel and aluminum articles, imposed under Section 232 of the Trade Expansion Act of 1962.

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CSMS #18-000424 addresses the additional import duties for steel and aluminum articles and how imports of steel and aluminum articles admitted to a U.S. foreign trade zone are to be treated (pursuant to the various presidential proclamations).

In an earlier CBP item, implications for foreign trade zones were addressed. According to CBP, any steel or aluminum article (except those eligible for admission under “domestic status”) subject to the Section 232 duties and admitted into U.S. foreign trade zones on or after 12:01 a.m. eastern daylight time on 23 March 2018, must be admitted as “privileged foreign status” and thus will be subject upon entry for consumption to any ad valorem rates of duty related to the classification under the applicable Harmonized Tariff Schedule (HTS) subheading.

Any steel or aluminum article (except those eligible for admission under “domestic status") subject to the Section 232 duties, that was admitted into U.S. foreign trade zones under "privileged foreign status" before 23 March 2018 will also be subject upon entry for consumption to any ad valorem rates of duty related to the classification under applicable Harmonized Tariff Schedule (HTS) subheadings imposed by the presidential proclamations.

Aluminum or steel articles will not be subject upon entry for consumption to Section 232 duties merely by reason of manufacture in a U.S. foreign trade zone. However, articles admitted to a U.S. foreign trade zone in “privileged foreign status" will retain that status.

The merchandise covered by the additional duties and quota may also be subject to antidumping and countervailing duties.

CBP provided a list of "frequently asked questions" (FAQs) concerning the additional customs duties.

For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich

Partner, Global Practice Leader

T: 312-665-1022

E: dzuvich@kpmg.com

 

Andy Siciliano

Partner, National Practice Leader

T: 631-425-6057

E: asiciliano@kpmg.com

 

Irina Vaysfeld

Principal

T: 212-872-2973

E: ivaysfeld@kpmg.com

 

Robert Waldrop

Principal

T: 212-954-8117 

E: rwaldrop@kpmg.com

 

Christopher Young

Principal

T: 312-665-3229

E: christopheryoung@kpmg.com

 

George Zaharatos

Principal

T: 404-222-3292

E: gzaharatos@kpmg.com

John L. McLoughlin

Principal, East Coast Leader

T: 267-256-2614

E: jlmcloughlin@kpmg.com

 

Luis (Lou) Abad

Principal, WNT

T: 212-954-3094

E: labad@kpmg.com

 

Amie Ahanchian

Managing Director

T: 202-533-3247

E: aahanchian@kpmg.com

 

Gisele Belotto

Managing Director

T: 305-913-2779

E: gbelotto@kpmg.com

 

Andy Doornaert

Managing Director

T: 313-230-3080

E: adoornaert@kpmg.com

 

Jessica Libby

Managing Director

T: 612-305-5533

E: jlibby@kpmg.com 

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