June 04, 2018 | Industry Insights

Bond Sufficiency – Steel and Aluminum Products under Section 232

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U.S. Customs and Border Protection (CBP) announced in CSMS#18-000372: UPDATE: Additional Duty on Imports of Steel and Aluminum Articles under Section 232 an update based on the President’s Proclamation on adjusting the duty and quota requirements for steel and aluminum.

The update advises as of June 1, 2018, all steel and aluminum articles imported from the following countries are subject to the Section 232 Import Duties:

  • Steel: All countries of origin except Argentina, Australia, Brazil and South Korea
    • All steel products must be classified under 9903.80.01 (25% percent) in addition to reporting under Chapters 72 and 73.
  • Aluminum: All countries of origin except Argentina and Australia
    • All aluminum products must be classified under 9903.85.01 (10% percent) in addition to reporting under Chapter 76.

Based on the general increase in the estimated duty for steel and aluminum products, your clients importing these products may require larger bonds as the continuous bond amount is calculated on 10% of the total duties, taxes, and fees for the previous 12 months.

We are here to assist you in taking an active role with these potential bond increases due to the Section 232 tariffs. You can run entry reports through our FastBond™ system or we can provide you with these reports for your clients in order to determine the proper bond amount. We can help you forecast the bond amount and pre-underwrite the bonds.

Your clients will be better-prepared in case of a bond sufficiency notice from CBP, which allows only 15 days to increase the bond. A bond rendered insufficient as a result of not timely replacing it with a bond in the proper amount could cause importers to incur unnecessary expenses and delays such as demurrage and the risk of cargo going to G.O.

In addition to the Section 232 duties CSMS #18-000372 also advises as of June 1, 2018, all steel and aluminum products imported from the following countries are subject to the Section 232 Absolute Quota:

  • Steel: Argentina, Brazil and South Korea
  • Aluminum: Argentina

Should you need assistance, please contact your Roanoke Trade Bond Service Team.

Roanoke Trade assists customs brokers and their clients to procure a variety of surety products including U.S. Customs Bonds. The importing landscape is constantly changing and it is critical to have a partner in place to keep you informed of new regulations and potential exposures.

For more information about our surety bond program and other products and services for customs brokers and transportation service companies contact your Roanoke Trade professional at 1-800-ROANOKE (800-762-6653).

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