Hello Customers, Colleagues, and Friends,
Effective June 4, 2025, the U.S. government will increase Section 232 duties on certain steel and aluminum products following a Presidential Proclamation issued on June 3, 2025.
Steel and derivative steel articles & Aluminum and derivative aluminum articles:
- Increased from 25% to 50% ad valorem duty
- UK-origin products remain subject to 25% duty. *Russian-origin steel/aluminum or products containing Russian metal remain subject to 200% duty
Content-Based Duty Assessment
For entries on or after June 4, duty is assessed based only on the value of steel or aluminum content within the product, not the total invoice value. If the content value is less than total value, importers must declare and file:
Two-line entries:
Line 1: Non-metal content
Line 2: Metal content with appropriate Chapter 99 HTS code and reported in kilograms
If the metal content value is unknown or equal to the total value, importers must report the full value as dutiable under the applicable HTS code. *Krenz & Hannan has implemented a handling charge for the SPLIT of a single line item on an entry in which a derivative is being declared.
Exclusions, Drawback, and FTZ Treatment
- Product-specific exclusions remain valid until their expiration or when the excluded volume is met
- No drawback is available for Section 232 duties
- Goods entered into Foreign Trade Zones (FTZs):
- Must enter under privileged foreign status if admitted on or after the proclamation date
- Duty is assessed on metal content upon withdrawal for consumption
- Melt/smelt and cast reporting is required for FTZ withdrawals
What this means for you
- Higher duties on covered steel and aluminum products effective June 4
- Updated filing procedures required to separate metal vs. non-metal value
- Mandatory origin declarations for melt/smelt/cast on all entries.
- If your product falls on the Section 232 Derivative list, ensure you identify and advise your US Customs broker the percentage value of the steel/aluminum content.
Further updates expected. We will continue to monitor developments and provide timely updates as additional information becomes available. Please reach out to us to confirm your products applicability of these increased tariffs.
Sincerely, Your friends at Krenz and Hannan International