Suspension of Section 232 Tariffs on Steel Products from Ukraine and Steel Products Processed in EU from Ukrainian Steel Inputs

From Fred Waite and Kim Young, AWPA Counsel

The President has exempted the following categories of steel products from Section 232 tariffs: (a) steel products which are produced in Ukraine and exported to the United States and (b) steel products which are produced in the European Union (EU) from steel inputs “melted and poured” in Ukraine.

  • The President has extended – until June 1, 2024 – the exemption from the Section 232 tariffs of steel products from Ukraine.  However, if a Ukrainian steel product is subject to an antidumping (AD) order, the AD duties will apply.
  • For example, carbon and alloy steel wire rod produced in Ukraine and exported to the United States is not subject to the Section 232 tariffs, but it is subject to the AD order on wire rod from Ukraine.
  • The President has suspended – also until June 1, 2024 – Section 232 tariffs on steel products which are further processed in an EU member state from steel which is melted and poured in Ukraine.  In order to qualify for the exemption from Section 232 tariffs, importers are required to submit “{a} certificate of origin attesting to the Ukrainian origin of the steel articles further processed in a member country of the European Union.”  This “certificate of origin” does not change the existing “country of origin” standard administered by U.S. Customs and Border Protection (CBP), and it does not change the current application of any AD/CVD orders.
  • For example, steel wire rod produced in Greece from Ukrainian billets is exempt from the Section 232 tariffs.  Further, because the wire rod is a product of Greece and there is no AD order on wire rod from Greece, the wire rod is also not subject to any AD duties.
  • Finally, steel products which are further processed in an EU member state from steel which is melted and poured in Ukraine are not subject to the quota limits in the U.S.—EU Tariff Rate Quota Agreement.