BIS Ends 12 General Exclusions From Section 232 Steel and Aluminum Tariffs

The Bureau of Industry and Security is eliminating 12 general approved exclusions from Section 232 tariffs on steel and aluminum, it said in a final rule released May 17.

That includes six GAEs for steel, covering some types of cold-rolled iron and non-alloy steel flat products, hot-rolled iron and non-alloy steel flat products and H- and U-sections. Another six cover aluminum, in particular aluminum tubes and pipe fittings, hollow profiles, other profiles, sheet ingot, foil and alloy bars and rods. The removals take effect July 1.

The changes stem from a proposed rule issued by BIS in August 2023 (see 2308250035). The agency said the removal of the exclusions is “the first of at least two final actions” based on the proposal, which floated adding new general denied exclusions, changing the way BIS considers GAEs and requiring additional certifications and evidence from filers of exclusion requests and objections.

Comments BIS received on the proposal on specific GAEs mostly “opposed the continuing use of certain GAEs as thwarting the objective of the Section 232 action,” BIS said, highlighting a comment that said GAEs covering aluminum extrusions are particularly harmful to that industry.

The GAEs on steel that BIS is eliminating are:

• GAE.24.S - 7211.29.6080 - Flat-rolled iron/nonalloy steel, width greater than 300mm but less than 600mm, not clad/plated/coated, cold-rolled, greater than or equal to 0.25% carbon, thickness less than or equal to 1.25mm
• GAE.43.S - 7209.90.0000 - Flat-rolled iron/nonalloy steel, width greater than or equal to 600mm, cold-rolled, not clad/plated/coated, whether or not in coils
• GAE.46.S - 7216.33.0090 - H sections of iron/nonalloy steel, hot-rolled/drawn/extruded, height greater than or equal to 80mm
• GAE.84.S - 7209.27.0000. Flat-rolled iron/nonalloy steel, width greater than or equal to 600mm, cold-rolled, not clad/plated/coated, not in coils, thickness 0.5–1mm
• GAE.90.S - 7216.10.0010 – U-sections of iron/nonalloy steel, hot-rolled/drawn/extruded, height less than 80mm
• GAE.93.S - 7208.38.0015. Flat-rolled iron/non-alloy steel, width greater than or equal to 600mm, hot-rolled, not clad/plated/coated, in coils, thickness greater than or equal to 3mm but less than 4.75mm, high-strength steel

The eliminated GAEs on aluminum are as follows:

• GAE.1.A - 7609.00.0000 - Aluminum tube or pipe fittings (couplings, elbows, sleeves)
• GAE.4.A - 7604.21.0010 - Aluminum alloy hollow profiles of heat-treatable industrial alloys of a kind described in note 6 to this chapter
• GAE.5.A - 7604.29.1010 - Aluminum alloy profiles other than hollow profiles of heat-treatable industrial alloys of a kind described in note 6 to this chapter
• GAE.9.A - 7601.20.9080 - Unwrought aluminum alloy, sheet ingot (slab) of a kind described in statistical note 3 to this chapter
• GAE.10.A - 7607.11.6010 - Aluminum foil of thickness greater than 0.01 mm and less than or equal to 0.15 mm, rolled, not backed, boxed and weighing less than or equal to 11.3 kg
• GAE.13.A - 7604.29.5090 - Aluminum alloy bars and rods, other than round cross section, other than heat-treatable industrial alloys of a kind described in notes 5 & 6 of this chapter

“The steel and aluminum articles specified by these 12 GAEs will revert to the duties and treatment previously established under Presidential Proclamations 9704 and 9705 as well as subsequent Proclamations,” BIS said.

The agency said it doesn’t expect the suspension of the 12 GAEs will “substantially increase” the total volume of submitted exclusion requests. “BIS estimates that the removal of these 12 GAEs will affect roughly 30 requestors who submit exclusion requests and will lead to the submission of an additional 1,000 exclusion requests per year in the Section 232 Exclusions Portal,” it said.

The final rule “makes no additional changes to the other 81 GAEs,” which remain in effect, BIS said. “As noted above, BIS made the determination to remove these 12 GAEs based on public comments received to the August 2023 Proposed Rule that was bolstered by internal analysis of exclusions data. It must be noted that should analysis of these GAEs change in the future, BIS may reissue these GAEs in whole or in part in subsequent rules.”