The Department of Commerce (DOC) Bureau of Industry and Security (BIS) published a Proposed Rule in the Federal Register related to the process for requesting exclusions from the Section 232 Steel and Aluminum Tariffs. In a previous notice, the BIS was directed to review the exclusion request process and make necessary improvements. As a result, the BIS is proposing four key changes to the Exclusion Request process:
- Generally Accepted Exclusions (GAE) Process: GAE Criteria will focus on the number of substantiated objections for specific 10-digit HTSUS codes, rather than just the number of objections received. The lower number of substantiated objections will show that the U.S. industry does not produce specific products or sub-products. Focusing on substantiated objections will increase the fairness and efficiency of the process and approval of GAEs.
- General Denied Exclusions (GDE) Process: GDEs will generally be implemented if, among other things, the HTS code or subproducts in a request, have very high rates of substantiated objections. The BIS has added criteria, including certifications, to limit the excessive exclusion requests and to increase the ability to fairly assess the requests.
- Modify Certification Language – Request Form: Introduce new volume certification requirements for exclusion requests to ensure that the import volume in the request is consistent with the past and future import volumes. Additionally, as part of the Exclusion Request Form, Importers will need to certify that they have made reasonable efforts to source their product from the U.S., or from a country that the U.S. has determined to have satisfactory means to address the threat of National Security under Section 232. Those countries include Argentina, Australia, Brazil, Canada, the European Union, Japan, Mexico, South Korea, and the United Kingdom. The importer will need to provide evidence of the certified alternate sourcing efforts.
- Objection Form: Additionally, the BIS is proposing to make similar changes to the Objection Form to ensure objectors can supply comparable quality and quantity of steel or aluminum and make it “immediately available” to requestors.
These proposed rule changes will require those requesting, or objecting to, an exclusion to focus and certify the information provided to the BIS with the Request of Objections Forms. These changes will improve the exclusion process and will enable the BIS to conduct timely, accurate, fair and transparent reviews of exclusion requests and objections.
As part of the proposed rule, the BIS is requesting public comments on the proposed exclusion request and objection changes. For submitting comments on the proposed rule go to the Federal eRulemaking website: http://www.regulations.gov. Submit comments for docket number BIS-2023-0021 or RIN 0694-AJ27. Comments must be submitted to the BIS through the docket no later than October 12, 2023.