On May 31, 2023, the President of the United States issued Proclamation 10588, announcing a one-year suspension of duties on Ukrainian steel and its derivatives under Section 232 of the Trade Expansion Act of 1962, as amended. The action extended a previous one-year suspension of Section 232 duties on Ukrainian steel that was issued by the President in Proclamation 10403 and scheduled to expire on June 1, 2023.
Proclamation 10588 also expands the scope of the previous action to cover products from the European Union made from steel originating in Ukraine, which the President states will “greatly assist the Ukrainian steel industry.” The extension coincides with the European Council’s regulation dated May 25, 2023 which “renews the suspension of all customs duties, quotas and trade defense measures on Ukrainian exports to the EU for another year, until June 2024.”
In order to obtain duty-free treatment, importers must submit a certificate of origin from Ukraine attesting to the origin of steel and steel derivate articles, or to the Ukrainian origin of the steel articles further processed in a member country of the European Union. Without certificates of origin from Ukraine, importers are subject to the 25 percent ad valorem duty under Section 232.
U.S. Commerce Secretary Gina Raimondo issued a statement praising President Biden’s leadership and declaring the May 31, 2023 announcement “a signal to the Ukrainian people that our commitment to them remains unwavering in the face of Russia’s aggression.”
Husch Blackwell continues to monitor developments relating to this issue. In the meantime, for guidance or questions relating to current U.S. trade remedy laws and tariffs, companies can contact the Husch Blackwell’s International Trade and Supply Chain team.