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TRQs on Steel and Aluminum From UK Take Effect June 1, With Some EU Steel Also Allowed

Steel that was melted and poured in the U.K. prior to further processing in the EU will be eligible to enter under a new tariff rate quota for U.K. steel that begins June 1 in lieu of Section 232 steel tariffs, according to a proclamation issued by President Joe Biden May 31 alongside a similar proclamation establishing a TRQ for U.K. aluminum.

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The special provision is limited to steel from Belgium, Germany, Italy, the Netherlands, Portugal, Spain and Sweden, CBP said in a quota bulletin released that same day. “Steel melted and poured in the United Kingdom with a country of origin of the specified EU countries is eligible to use the listed UK TRQ quantities for that country," the bulletin said. “Filers must use HTS 9903.81.81 as the first HTS number followed by the CH 72/CH73 classification HTS number of their goods as the next HTS number.”

The U.K. steel TRQ will be administered on a quarterly basis, in contrast with the semi-annual U.K. aluminum TRQ (see 2206010043). Both TRQs open 12:01 local port time June 1, with the first quota period running until June 30. For both quotas, entries submitted prior to 8:30 a.m. EDT June 1 are counted in the first opening, with the first opening prorated if totals for any tariff schedule subheading exceed the limit.

As announced when the deals to replace Section 232 tariffs on U.K. steel and aluminum with TRQs were agreed to in March (see 2203230055), any U.K. steel producers that want to export under the quota and are owned or controlled by a company registered in China or a Chinese entity will have to attest that there is no evidence of market-distorting practices by that producer in the U.K. that would contribute to nonmarket excess capacity of steel. The attestation must be backed by an annual third-party audit.

“If the attestation is not provided annually as set out in the Annex to this proclamation, the Secretary may temporarily deny access for any UK steel producer to the in quota rate for the applicable tariff-rate quota,” the proclamation said.

For both quotas, any steel or aluminum imported under an importer-specific or generally approved exclusion will count toward the relevant quota limit, CBP said. However, steel and aluminum entered under an exclusion may still be imported after the relevant quota fills. Also, for both steel and aluminum, Section 232 tariffs on “derivatives” will no longer apply to U.K. goods.

Unique to the aluminum quota is a requirement that all in-quota imports of aluminum articles from the U.K. be accompanied by a certificate of analysis that shows the aluminum does not contain primary aluminum from China, Russia and Belarus. “Importers should submit the certificate of analysis to the Document Imaging System,” CBP said in a quota bulletin on the aluminum TRQ.