Exemptions Could End in May, Quotas Possible, White House Says as CBP Begins Collecting New Tariffs on Steel, Aluminum

The countrywide exemptions to new tariffs on steel and aluminum may expire May 1, "pending discussions of satisfactory long-term alternative means to address the threatened impairment to U.S. national security," the White House said in a March 22 statement. A notice from CBP detailing the implementation of the tariffs also said the tariffs would apply to all countries of origin as of May 1. By that date "the President will decide whether to continue to exempt these countries from the tariffs, based on the status of the discussions," the White House said.

President Donald Trump also officially added Argentina, Australia, Brazil, EU countries and South Korea to its list of countries temporarily exempt from the tariffs on steel and aluminum that took effect March 23. The EU includes Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom. The country exemptions apply to the country of origin, rather than the country of export, CBP said. U.S. Trade Representative Robert Lighthizer said on March 22 those countries would join Mexico and Canada as countries excluded from the tariffs (see 1803220050). European Commission President Jean-Claude Junker called the temporary exemption "not very realistic" and said the EU is "asking for a permanent exemption."

Trump "retains broad authority to further modify the tariffs, including by removing the suspensions or suspending additional countries," the White House said. The administration will monitor imports of the metals from the exempted countries and the USTR "may advise the President to impose quotas as appropriate," the White House said. "Further action by the President would be needed to implement any quota the President might decide to adopt." More guidance from CBP will come "if there are any changes to these measures, including any changes to exempted countries and any new requirements, such as quota requirements," CBP said.

As of 12:01 a.m. March 23, entry summaries for steel products are required to include the
HTS classification 9903.80.01 in addition to the Chapter 72 and Chapter 73 classifications, CBP said. Covered aluminum products are to include the 9903.85.01 classification along with the Chapter 76 classification. Failure to include the required Chapter 99 classifications will result in reject messages. While some of the reject messages mention a quota, there is no actual quota and "this ACE functionality is being used to validate entry summary transmissions and reject when validations determine the data is missing the required chapter 99 number," the agency said.

CBP also spelled out how the tariffs apply to foreign-trade zones. "Any steel or aluminum article that was admitted into U.S. foreign trade zones under 'privileged foreign status'" before the tariffs took effect, will "be subject upon entry for consumption" to the tariffs, said CBP. Such goods admitted into FTZs with "privileged foreign status" after the tariffs took effect will also be subject to the duties upon entry for consumption, it said.