CBP Issues New Reporting Rules for 200% Tariff on Russian Aluminum and Derivatives, Independent of Origin

Trade Update • March 29, 2023

BP recently issued guidance via CSMS No. 55402109 and CSMS No. 55424218, respectively, regarding the 200% tariff imposed by Proclamation 10522 on certain aluminum products. CSMS No. 55402109 provides a list of new subheadings under Chapter 99 of the HTSUS that importers must report for the Covered Aluminum Products. Effective March 10 and April 10, 2023, respectively, the subheadings apply to aluminum articles that are products of Russia or include any amount of primary aluminum smelted or cast in Russia, with some exclusions determined by the Department of Commerce.

Aluminum Tariffs Increase

• On March 10, 2023, a 200 percent duty on “aluminum articles that are the product of Russia and derivative aluminum articles that are the product of Russia”; and

• On April 10, 2023, a 200 percent duty on “aluminum articles where any amount of primary aluminum used in the manufacture of the aluminum articles is smelted in Russia, or the aluminum articles are cast in Russia, and derivative aluminum articles where any amount of primary aluminum used in the manufacture of the derivative aluminum articles is smelted in Russia, or the derivative aluminum articles are cast in Russia.” (Where “primary aluminum” is defined as new aluminum metal that is produced from alumina (or aluminum oxide) by the electrolytic Hall-Heroult process.)

New Reporting Requirements

CBP issued CSMS No. 55402109, which identified the new Ch. 99 HTSUS subheadings that importers shall report for the Covered Aluminum Products. They are as follows:

85.67 (Effective March 10, 2023): “Aluminum articles that are the product of Russia, the foregoing under the terms of note 19(a)(vii)(A) to this subchapter and provided for in the tariff headings or subheadings enumerated in note 19(b) to this subchapter, except any exclusions that may be determined and announced by the Department of Commerce.”

85.68 (Effective March 10, 2023): “Derivative aluminum articles that are products of Russia, when such derivative articles are provided for in the headings or subheadings enumerated in note 19(a)(iii) to this chapter, except any exclusions that may be determined and announced by the Department of Commerce.”

85.67 (Effective April 10, 2023): “Aluminum articles that are the product of Russia, or where any amount of primary aluminum used in the manufacture of the aluminum articles is smelted in Russia, or where the aluminum articles are cast in Russia, the foregoing under the terms of note 19(a)(vii)(A) to this subchapter and provided for in the tariff headings or subheadings enumerated in note 19(b) to this subchapter, except any exclusions that may be determined and announced by the Department of Commerce.”

85.68 (Effective April 10, 2023): “Derivative aluminum articles that are products of Russia, or where any amount of primary aluminum used in the manufacture of the aluminum articles is smelted in Russia, or where the aluminum articles are cast in Russia, when such derivative articles are provided for in the headings or subheadings enumerated in note 19(a)(iii) to this chapter, except any exclusions that may be determined and announced by the Department of Commerce.”

CSMS No. 55424218 specified the new reporting requirements for importers of aluminum and aluminum derivative products from all countries of origin. Effective April 10, 2023, importers must report the primary country of smelt, secondary country of smelt, and country of cast, as defined in the CSMS, on the entry summary, even if Russia is not involved in the supply chain. Failure to comply with these requirements may result in CBP enforcement and penalties, and importers should exercise diligence and care in making accurate declarations.

Exemption

Concerns about aluminum imports from Russia and their impact on U.S. national security are shared by other countries. The U.S. recognizes that they need to work together with their partners to ensure that the global market distortions caused by Russian aluminum articles do not distort markets and threaten U.S. national security. Any country that imposes a tariff of 200 percent or more on its imports of aluminum articles that are products of Russia may be exempt from the tariff imposed by the proclamation.

Questions about these increasing duties, and if your products are affected? We are always here to help, contact us.