Updated Guidance: Section 232 Additional Aluminum Derivative Tariff Inclusion Products
This article is a summary of SMS # 65936615 – GUIDANCE: Section 232 Additional Aluminum Derivative Tariff Inclusion Products, along with a download file containing a listing of the updated HTS Codes.
To review the complete document, please click on the following link:
SMS # 65936615 – GUIDANCE: Section 232 Additional Aluminum Derivative Tariff Inclusion Products
Background
- President issued Proclamation 10895 on February 10, 2025, adjusting aluminum imports into the United States
- Key agencies involved: U.S. International Trade Commission, Department of Commerce, U.S. Customs and Border Protection, and other executive agencies working together on implementation
- Primary goal: Revise the Harmonized Tariff Schedule of the United States (HTSUS) to align with new amendments and effective dates
- Secretary of Commerce authorized to publish modifications to the HTSUS reflecting these changes
- Effective August 18, 2025: Commerce Department will add more aluminum derivative products to Annex I, making them subject to Section 232 duties
- Additional changes: Annex II includes technical corrections to the Harmonized Tariff Schedule
- Process follows: “Adoption and Procedures of the Section 232 Steel and Aluminum Tariff Inclusions Process” guidelines
Entry Filing Instructions
Effective August 18, 2025, U.S. Customs and Border Protection (CBP) will implement new Section 232 duties on certain aluminum derivative products. This guidance affects importers, brokers, and filers submitting entries for goods entered for consumption or withdrawn from warehouse.
Standard Rate (All Countries Except UK):
- 50% ad valorem duty on aluminum content value
- Applies to derivative aluminum products under subdivisions (j) and (k)
- Covers both Chapter 76 classified items and non-Chapter 76 aluminum derivatives
UK-Specific Rates:
- 25% ad valorem duty on aluminum content value
- Lower rate reflects special trade relationship
- Applies to UK aluminum derivatives under subdivisions (r) and (s)
Zero-Duty Exception:
- 0% duty for aluminum derivatives processed in other countries
- Must originate from aluminum smelted and cast in the United States
- Covers subdivisions (j), (k), (r), and (s)
- Product Coverage: New aluminum derivative articles added to U.S. Note 19 subdivisions of the Harmonized Tariff Schedule (HTSUS)
- Duty Calculation: All rates apply specifically to the value of aluminum content, not the total product value
- Chapter 99 Classifications: Products fall under specific HTSUS numbers (9903.85.07, 9903.85.08, 9903.85.09, 9903.85.14, 9903.85.15)
- Documentation Required: Importers must follow aluminum content reporting instructions detailed in CSMS #65236645
- Product Identification: Newly added products are clearly marked in bold on the attached aluminum HTS list
Application of Reciprocal Tariffs under EO 14257
- Non-aluminum content in products must be reported separately and is subject to Reciprocal tariffs under HTS code 9903.01.25
- Aluminum content that falls under Section 232 duties requires separate reporting but is NOT subject to Reciprocal tariffs under HTS code 9903.01.33
- Different treatment applies: The same product receives different tariff treatment depending on whether you’re looking at its aluminum or non-aluminum components
- Reporting requirement: Both content types must be listed on separate lines when filing trade documentation
- Key distinction: Section 232 aluminum duties and Reciprocal tariffs operate under different regulatory frameworks, creating this split treatment
Duties for Aluminum from Russia
- 200% duty applies to all aluminum products and derivative aluminum products from Russia
- This duty covers the entire value of imported goods, not just a portion
- The restrictions remain currently in effect with no specified end date
Products Covered
- Primary aluminum products manufactured in Russia
- Derivative aluminum articles (processed aluminum goods) with Russian connections
- Any aluminum products where primary aluminum was smelted in Russia
- Aluminum articles that were cast in Russia, regardless of origin
Import Classification Requirements
- Importers must use specific HTSUS headings for proper reporting:
- 9903.85.67 for aluminum products
- 9903.85.68 for aluminum derivative products
- 9903.85.70 applies to certain derivative articles based on entry date
Scope of Restrictions
- Covers products that are directly manufactured in Russia
- Includes items containing any amount of Russian-smelted primary aluminum
- Applies even if only the casting process occurred in Russia
Smelt and Cast Reporting Requirements
Importers bringing aluminum products into the United States must follow specific reporting guidelines under Section 232 regulations
Core Reporting Requirements
- Report ISO country codes for all aluminum articles and derivative aluminum products from countries subject to Section 232 regulations
- Identify smelting locations by reporting either:
- Primary country of smelt (marked as “Y”)
- Secondary country of smelt (marked as “Y”)
- Both cannot be marked “N” – at least one must be reported
- Include country of most recent cast information when applicable
Handling Unknown Information
- When the derivative aluminum’s origin is unknown, report ‘UN’ (unknown) for the ISO country code
- Important consequence: Using ‘UN’ triggers 200% Section 232 duties specifically for Russian aluminum on your entry summary
Recycled Aluminum Products
- Mark “Y” for secondary country of smelt
- Report the country of origin as the secondary country of smelt code
- Rare occurrence – most aluminum isn’t manufactured solely from recycled materials
- Documentation required: Keep manufacturing records ready for inspection to prove recycling process
US-Made Products
- Products smelted and cast in the United States: Report “US” for both country of smelt and country of cast
Compliance Notes
Documentation is crucial – importers must maintain proper records to support their reporting, especially for recycled aluminum claims. The regulations require accurate identification of where aluminum was processed, not just where the final product was assembled.
Penalty awareness – Incorrect reporting, particularly using ‘UN’ codes unnecessarily, can result in significantly higher duty rates. The 200% duty rate for Russian aluminum when reporting unknown origins serves as both a compliance tool and economic measure.
Drawback
No drawback shall be available with respect to the duties imposed.
Foreign Trade Zone (FTZ)
- Foreign Status Required: Aluminum articles entering U.S. foreign trade zones after the Commerce certification date must have “privileged foreign status” (except those with domestic status)
- Duty Obligations: These articles remain subject to standard duty rates when entering for consumption
- Reporting Mandate: Starting August 18, 2025 at 12:01 a.m. EDT, smelt and cast reporting requirements apply to goods admitted into FTZs and later withdrawn for consumption
- No Exemptions: Standard classification duties under applicable HTS subheadings still apply regardless of FTZ admission
Next Steps
- Review the aluminum HTS list to identify affected products
- Verify proper classification under eight-digit subheadings and 10-digit statistical reporting numbers
- Prepare documentation for aluminum content value reporting
Reference Material
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