Skip to main content

Aluminum 232 Investigation & Fair Trade Update

This month we will look at the 232 Investigation and provide an update on our Fair Trade case.  After having lived, eaten, and slept the 232 Investigation for the last 11 months, it is hard to believe it’s nearly over.  I say nearly over, because the aluminum industry now has an opportunity to seek exclusions by country or product.  Furthermore, the President has made it clear to excluded countries that they are only conditionally excluded pending the outcome of other trade negotiations.  Nevertheless, the AEC’s shuttle diplomacy to Washington D.C. on this matter is, for all intents and purposes, complete.

Countries and individual companies have already started to seek exclusions.  Both Canada and Mexico were initially excluded, based on a positive outcome to the ongoing North American Free Trade Agreement (NAFTA) renegotiations.  Other countries have also been excluded since the announcement.  Now we are seeing and hearing of many companies coming forward seeking specific product exclusions.  The administration appears prepared to process those requests.  On April 5th the AEC hosted a webinar presented by its lead attorney on this matter, Matthew McConkey of Mayer Brown.  You can hear the recorded session on our YouTube channel here.

For the AEC fair trade case, the focus continues to be on trade enforcement.  The AEC launched its petition for a circumvention case against Vietnam earlier this year.  The Department of Commerce (DOC) has since initiated a full investigation.  The results from that investigation are expected towards the end of 2018.  Likewise, the AEC has engaged the Customs and Border Patrol through the new Enforce Act about reports of transshipments coming from other countries.  I will be spending a lot of time on this type of reporting in the coming months.  The U.S. government changed its process in handling reports of transshipment activity.  This new process requires Customs to report certain findings and hit specific deadlines in order to make the investigation more transparent to the reporters.  I have met with the person in charge of this new process and she is excited to support our industry!

Scope issues are still being followed closely in the curtain wall, door threshold, and appliance handle cases.  I have previously reported on our progress in those matters.  At this time there is nothing more to report.

This summer we will be gearing up for the next administrative review, and look forward to the DOC’s announcement about its results on this year’s review.

Be sure to check out the upcoming essentiALs articles related to our trade case.  There are some interesting events taking place, which cannot yet be discussed publicly!  Thank you for your continued trust and support!

Comments

Popular posts from this blog

Valuation, USMCA, and Fair Trade Priorities

 The primary focus of our government affairs work at this moment centers on the Section 232 valuation issue currently under discussion in Washington, D.C.  As highlighted during the recent Aluminum Summit and in prior AEC communications, there remains uncertainty regarding how the Administration intends to resolve this matter. The original Executive Order that established the Section 232 aluminum tariffs made clear that the tariffs were intended to apply to the full value of the imported aluminum extrusion, not solely the value of the aluminum content within the product.  At this time, it remains unclear whether the Administration will seek to address the issue by issuing a new Executive Order or by providing additional interpretive guidance through U.S. Customs and Border Protection (CBP).  The AEC is actively monitoring these discussions and will update members as soon as a definitive course of action emerges. Parallel to the valuation discussions, attention is tur...

Section 232 Updates & Enforcement Expands

 The Administration issued another update to the Section 232 steel, aluminum and copper tariff program on June 1.  The program now reaches a growing list of derivative products and downstream imported goods where aluminum content is part of a larger product. The June 1 action modifies several of the 232 product annexes and makes temporary adjustments for certain equipment categories.  According to the White House fact sheet, certain agricultural equipment and other equipment will be adjusted from a 25 percent tariff to a 15 percent tariff.  The action also expands the category of industrial equipment eligible for the temporary 15 percent tariff treatment to include certain mobile industrial equipment, such as bulldozers and forklifts, when imported from trade deal countries eligible for that treatment.  These temporary changes are scheduled to remain in place through December 31, 2027. There were also modifications to the HTS codes covered by the annexes.  ...

Section 232 Update: Focus on Aluminum Derivative Products

 Over the past several weeks, we have started to get a clearer picture of how the updated Section 232 framework will impact aluminum, especially when it comes to derivative and finished products tied to the markets our members serve. The most important change is how the tariffs are applied. Covered products are now generally assessed on the full value of the imported product, rather than only the aluminum content. For finished goods, that is a meaningful change in how duty exposure is calculated. Looking at the annex structure, several key extrusion-driven products are now clearly defined. Aluminum windows, doors, and structural components (7610.10.00 and 7610.90.00) fall under Annex I-A and are generally subject to a 50% Section 232 tariff applied to full value. Trailers and aluminum ladders (8716.10.00 and 7616.99.5130) fall under Annex I-B and are generally subject to a 25% Section 232 tariff, also applied to full value. The takeaway is straightforward. Tariff treatment is drive...