Skip to main content

Aluminum 232 Exclusion/Objection Process in Full Swing

Since our last update, the 232 exclusion/objection process is in full swing.  Over the last several weeks we have continued to refine the workflow and communication of the exclusion requests to make sure membership continues to receive the communications and objects when appropriate. For those members that have been working through the process we at AEC HQ thank you.  If for some reason you’re an AEC Extruder Member who should be receiving these communications, please let me know at jweber@tso.net and we’ll make sure you’re added to the distribution list.

Although there are new companies submitting requests, we continue to see the same entities entering the bulk of the exclusion requests.  However, for the most part the exclusion requests are much the same with slight changes here and there.  This does simplify the objection process in a way where similar objections can be filed for multiple exclusion requests.

As a reminder, price is not a valid reason for a company to seek an exclusion request.  Objections are simple where an Extruder Member should object if the objecting company is able to meet the specifications, volume and lead-time detailed in the exclusion request.  Additionally, if you have reviewed some of the exclusion requests, you noticed that many of them contain anodized or paint requirements.  An extruder not having an anodizing or paint facility on site would not preclude them from objecting.  If you have an anodizing or paint supplier you work with and can meet the specification, volume, and lead-time, an objection is again warranted.

As we continue to progress through this exclusion/objection process, we will be communicating the number of objections received on each item and the wins and losses as the exclusion completes the process.  In the end we are looking to record three to four objections per exclusion request and will provide weekly updates.

In other news on the 232 front, the Biden administration announced an agreement with Mexico (read the announcement here), which implements a “smelted and cast” requirement from products imported into the U.S. from Mexico in order to qualify for an exemption to the 232 Tariff.  Under this rule change, aluminum must be “smelted and cast” not from countries of concern (Belarus, China, Russia, and Iran).  While this only applies to the HTS codes covered under the 232 program, this is a good first step in stemming the flow of aluminum from the countries noted that distort the market.


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.  ...

AEC Testifies at USMCA Hearing in Washington

Since the AEC’s last Government Affairs update, the Council participated in the U.S.–Mexico–Canada Agreement (USMCA) hearing held in Washington, DC, from December 3–5. The hearing drew more than 200 participants representing a broad range of perspectives on the future of the agreement. The AEC appeared on a panel immediately following the steel industry, and it was noteworthy how closely aligned many of the challenges facing aluminum extruders are with those impacting steel producers—particularly with respect to trade enforcement, circumvention, and market distortion. These discussions reinforced the importance of maintaining a strong, competitive aluminum extrusion industry and underscored the essential role our sector plays as a supplier of critical inputs across construction, transportation, energy, and numerous other segments of the North American economy. During our testimony, the AEC used the hearing as an opportunity to highlight ongoing concerns regarding trade circumventio...