Quota Expiration Approaching - Status of Section 232 Duties on Steel and Aluminum from the EU
As mentioned in our November 22nd announcement, the agreement for a tariff-rate quota (TRQ) on EU steel and aluminum comes to an end after December 31, 2023, unless the U.S. government issues an extension. However, at this time there is no indication that an extension will be granted
Previously, the U.S. replaced blanket Section 232 duties with a tariff-rate quota (TRQ) allowance for products from the EU eligible under origin criteria, which took effect on January 1, 2022. For steel and aluminum entered within the quota volume, no Section 232 duties were payable. If the quota filled, the product could still be entered into the U.S., but with duty payable under the Section 232 duties.
The U.S. and EU continue to debate terms of the Global Arrangement on Sustainable Steel and Aluminum (GSA), but according to news sources, discussions have stalled. In the absence of an agreement to new trading terms or an extension of the existing TRQ program, all EU steel and aluminum will be subject to Section 232 duties as of January 1, 2024, unless an importer has an approved
exclusion with the Department of Commerce, Bureau of Industry and Security.
Schenker Customs will continue to monitor this situation and provide guidance as more information becomes available.