The Tariff Rate Quota (TRQ) Program, resulting from the presidential decision on the Section 201 trade case filed against steel wire rod imports, is beginning its third month. As of April 28th, 34.13% of the first quarter quota had been filled (11.38% of the annual quota). However, due to the long lead-time for ordering foreign material, it is still too early to determine what impact the TRQ will have on the level of imports.
There has been some confusion regarding changes in the Harmonized Tariff Schedule (HTS) provisions covering certain steel wire rod under the TRQ. US Note 9 to Subchapter III of the HTS contains a list of eight specific steel products that are exempt from the quota. Exempted products should be classified under the following tariff provisions: 7213.91.3010; 7213.91.4510; 7213.91.6010; 7213.99.0031; 7227.20.0010; or 7227.90.6051, and must meet the
specific properties described in the TRQ program.
If the imported steel wire rod does not fit any of the descriptions listed in Note 9, then it cannot be classified under
any of the exempted tariff numbers. Rather these products should be classified under the following: 7213.91.3090; 7213.91.4590; 7213.91.6090; 7213.99.0038; or 7227.20.0090. Most of the steel wire rod being imported into the US will fall under one of these provisions.
One other note: although steel wire rod from Canada and Mexico are excluded from the quota, this rod will still have to be classified under one of the tariff categories listed as a "covered" product. The only circumstance in which steel wire
rod from Canada or Mexico should be classified as exempt is if the product being imported meets one of the descriptions in Note 9. This will be a relatively rare occurrence.
The Chicago Strategic Trade Center may start contacting ports for possible misclassifications based on their review of import data. If you have any questions, contact your local import specialists.
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American Wire Producers Association
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Tel (703) 971-6454 | Fax (703) 971-6997 | E-mail info@awpa.org
