The Bureau of Industry and Security is adding 407 new HTS codes to the list of goods under the scope of the Section 232 tariffs for steel or aluminum. The tariff rate is currently assessed at 50%, and the same rules apply that allow for the tariff to be applied only on the steel or aluminum component if the importer can provide the breakdown. As we read the notice, the rules on applying the tariffs only to the steel or aluminum component remain the same for derivative products; it does not apply to non-derivative products. Derivative products made wholly of steel or aluminum, or for which a component breakdown cannot be provided, will be assessed the additional tariff on the full value. The notice of this expansion is expected to be published in the Federal Register on August 19, but the tariffs are effective for goods on the expanded list on August 18. The unpublished list may be viewed here.
This is a major expansion of the list of goods falling under the additional tariffs, and the affected HTS codes fall under numerous chapters. Products classified under food, cosmetics, and chemicals are included in the list, presumably because of their packaging. Machinery and electricals are also heavily impacted by this expansion. The list of furniture products covered by the tariffs will be expanded to cover metal seating, metal office furniture, and more furniture parts. The list also included commonly imported goods such as ball bearings.
No exemption to the additional tariffs has been granted to goods in transit.
Best Regards,
Sam McClure, LCB
Director of Compliance & Customs Services