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On August 29, 2018, President Trump issued proclamations announcing that companies will be able to request exclusions from the Section 232 quantitative limitations (i.e., quotas) for certain steel and aluminum products imported in to the United States.  In particular, this affects steel and aluminum imports from Argentina, Brazil, and South Korea.

The quota exclusion requests must be based on insufficient quantities or insufficient quality available from U.S. steel or aluminum producers.  Any steel or aluminum article granted relief for either of these reasons will also not be subject to additional tariffs.

Additionally, quota exclusions for steel products will be granted on an expedited basis if they are subject to the following conditions:

  • The party requesting relief had a written contract for production and shipment of the product to the United States before March 8, 2018; and
  • The contract specifies the quantity of the steel article and contains a schedule; and
  • The steel article is to be used to construct a facility in the United States and cannot be procured from a U.S. supplier to meet the delivery schedule or specifications; and
  • Payments made on the product constitute 10% or less of the cost of the facility under construction; and
  • Lack of relief would significantly disrupt or delay construction.

However, exclusions of this type will be subject to the additional 25% duty.

The Department of Commerce will review all steel and aluminum exclusion requests and grant relief on a party-by-party basis. Relief will be retroactive to the date the request was accepted by the Department of Commerce.

For more information on how to request an exclusion, please contact Robert Stang or other members of Husch Blackwell’s International Trade and Supply Chain practice.