What is a derivative?
A derivative article is a product made from a primary material, such as auto parts, cookware, nails, or furniture.
What steel or aluminum derivatives are subject to additional duties under Section 232?
On February 10, 2025, the President issued Proclamation 10895 and 10896 on Adjusting Imports of Aluminum and Steel into the United States, under Section 232 of the Trade Expansion Act of 1962. These new proclamations target additional derivative articles that are further downstream than those covered in the original 2018 proclamation.
How are the additional duties applied specific to these new derivatives?
The duty is applied to the value of the aluminum or steel content of the derivative, in the case where the value of the aluminum or steel content is less than the total value of the imported article.
This duty applies only to derivatives classified outside USTHS Chapters 73 and 76. If the content value is unknown or equal to the total value of the good, the Section 232 duty will be assessed on the full value.
How do I report the content value and required content kilograms?
Please coordinate with your providers to report the content value and weight in kilograms on the commercial invoice. This is in addition to the total value and weight. Please note that as the importer of record, you are required to provide CBP with any necessary information to identify the content used in manufacturing the derivative articles covered by these proclamations. This indicates CBP may seek information to support the value provided on your commercial invoice.
Is there an exception to the derivative Section 232 duty?
An exception to the Section 232 duty is if the importer can demonstrate that the derivative was made abroad from steel that was “melted and poured” in the U.S., or aluminum that was “smelted and cast” in the U.S.
What additional Customs declaration reporting requirements are there?
The primary and secondary country of smelt and country of cast must be provided for aluminum derivatives. The primary country of melt and pour must be provided on steel derivatives.
It is critical to ensure this information is included in your import documentation. For further clarification, refer to CBP messages CSMS #55438432 and CSMS #62582900.