CBP Clarifies Exemption from Reciprocal Tariffs for Steel and Aluminum Articles Subject to Section 232 Duties

In its FAQs, U.S. Custom and Border Protection (CBP) clarified the exemption from reciprocal tariffs for goods subject to steel/aluminum Section 232 duties under HTSUS 9903.01.33. CBP clarified that the exemption only applies if the Section 232 duties are “owed and payable” on the imported goods. Therefore, a product is not exempted from Section 232 duties just because its Harmonized tariff code is covered by the steel/aluminum Section 232 duties. If the product does not contain any steel or aluminum the exemption does not apply and the reciprocal duties are owed.

CBP also clarified that if an importer separates the values of the steel/aluminum content and non steel/aluminum content on two entry lines and pays the Section 232 duties on the steel/aluminum content, then “the 9903.01.33 exemption can be claimed on both lines, representing the entire article.”

Malaysia Announces Modifications to Certificate of Origin Procedures for Exports to the United States to Prevent Transshipment

On May 5, 2025, the Malaysian Ministry of Investment, Trade and Industry (“MITI”) announced changes to the procedures for Malaysian companies to obtain certificates or origin for their exports. To prevent potential transshipment of non-Malaysian origin goods, MITI announced that, effective May 6, all certificates of origin for shipments to the United States will be issued by MITI. Malaysian companies will no longer be able to obtain certificates of origin for shipments to the United States from business councils, chambers, or associations that were previously appointed by MITI to issue such certificates. In addition, MITI announced that it will enhance audits of applicants for certificates of origin and take necessary actions to prevent transshipment to the United States.

BIS To Rescind Biden-Era AI Diffusion Export Controls

On May 8, 2025, the Commerce Department’s Bureau of Industry (“BIS”) announced it would rescind the artificial intelligence diffusion export controls issued by the Biden Administration in January 2025. The rules were previously set to take effect May 15, 2025. BIS stated it intends to introduce a “much simpler” rule. BIS has sent the official recission notice for interagency review, but it is not clear when either the official notice or the replacement rule will be published.

Treasury Announces “Known Investor Portal” to Fast-Track CFIUS Reviews

On May 8, 2025, the Treasury Department announced it will create a “fast track process” to encourage and facilitate greater investment in the U.S. This process will include a new “Known Investor Portal” for reviews by the Committee on Foreign Investment in the United States (“CFIUS”), allowing CFIUS to collect information from foreign investors ahead of filings.

Week Sixteen Sanctions Designations

The Treasury Department’s Office of Foreign Assets Control (“OFAC”) added several persons and entities to its Specially Designated Nationals and Blocked Persons List (“SDN List”) during Week Sixteen of President Trump’s return to office:

• On May 5, OFAC sanctioned the Karen National Army (“KNA”), a militia group in Burma, along with the group’s leader and his two sons, for their role in facilitating cyber scams (see OFAC press release here).

On May 8, OFAC designated the “teapot” refinery Hebei Xinhai Chemical Group Co., Ltd. and three port terminal operators in Shandong Province for their role in purchasing or facilitating the delivery of Iranian oil (see OFAC press release here).