There have been numerous recent inquiries regarding the proper method for determining the customs value of steel and aluminum products, including derivatives, for purposes of IEEPA and Section 232 duties. This issue is further complicated by the absence of formal legal guidance from U.S. Customs and Border Protection (CBP). To date, CBP has provided only the following general statement:
“The value of the steel/aluminum content should be determined in accordance with the principles of the Customs Valuation Agreement, as implemented in 19 U.S.C. § 1401a. Thus, the value of the steel/aluminum content is the total price paid or payable for that content, which is the total payment (direct or indirect, and exclusive of any costs, charges, or expenses incurred for transportation, insurance, and related services incident to the international shipment of the merchandise from the country of exportation to the country of importation) made or to be made for the steel/aluminum content by the buyer to, or for the benefit of, the seller of the steel/aluminum content. Normally, this would be based on the invoice paid by the buyer of the steel/aluminum content to, or for the benefit of, the seller of the steel/aluminum content.”
More recently, CBP’s Base Metals Center for Excellence and Expertise has provided informal guidance offering insight into how CBP may view which costs are included in, or excluded from, the price of the metal content. While this guidance is not legally binding, it may provide an indication of CBP’s potential approach in future binding rulings or decisions.
Additional information regarding this informal guidance is provided here. We also invite you to visit CVI’s Section 232 Tariff Guide.
*Please note that the information provided herein is not legally binding, as CBP has not issued an official ruling or decision on this matter. This content is intended for general informational purposes only and should not be relied upon as legal advice. Importers are encouraged to consult with legal counsel before implementing any changes based on this information.
Best Regards,
Director of Compliance & Customs Services