Following up on our November 3 alert broadly detailing the agreement between the United States and the European Union to replace the Section 232 tariffs on steel and aluminum with a tariff rate quota (TRQ), the US Department of Commerce’s Bureau of Industry and Security (BIS) has released more specific details on the operation of the new arrangement.
BIS has posted the following lists providing additional guidance on the functioning of the TRQ and revised exclusion request process for imports from the EU, which will take effect January 1, 2022.
- The list of granted exclusions that are eligible to be extended through 2023. Recall that the EU Agreement announcement provided that exclusions granted and utilized during fiscal year 2021 (October 2020- September 30, 2021) will be extended 2 calendar years (until December 31, 2023) without a need to reapply. For example, an exclusion granted for 50,000 tons in February and drawn on in July 2021 will be rolled over for 2022 and 2023 at the same level of 50,000 tons each year.
- The list of TRQ volumes permitted by country and product group. The TRQ will be administered quarterly on a “first come first served” basis by product group and country.
- A list of the Annual Steel TRQ categories by HTSUS subheading.
- A break out of the annual Steel TRQ amounts by quota category and EU member state.
We anticipate additional information to be released shortly, along with an official proclamation confirming the above.