Expect More Section 232 Quantity Cert Reviews Following GAO Report, Law Firm Says
Steel and aluminum importers should expect the Commerce Department's Bureau of Industry and Security to "conduct additional quantity certification reviews and more closely scrutinize the data points included in exclusion requests" following a Government Accountability Office report on the exclusion process, global firm Crowell & Moring said. The firm said importers could also face further scrutiny from CBP, who will be more closely examining Section 232 exclusion claims that are not properly filed.
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Given this increased scrutiny, importers "should be extra vigilant of the information submitted in exclusion requests, carefully monitor their quota usage and ensure proper claims are filed with CBP," the firm said.
In the report, GAO pointed to various issues with the enforcement of the exclusion process, including CBP's "inconsistent data for about" 5% of the nearly 207,000 approved exclusions through September 2021. The agency noted that there is an estimated $32 million in unpaid duties that are a result of "invalid exclusion use as of November 2021."
GAO floated four recommendations: CBP should take additional steps to recover the duties owed by importers due to invalid Section 232 exclusion use; CBP should ensure that controls are imposed to stop importers from exceeding the approved quantities of the Section 232 exclusions; BIS should evaluate the results of the certification requirement; and BIS should impose a more consistent data transfer process.
Crowell said that while BIS continues to carry out quantity certification reviews, the firm "recommends that requesting organizations confirm that their Section 232 requests are in accordance with Commerce’s guidelines." Crowell added that importers should also track their exclusion usage to prevent exceeding the quotas and timely file any renewals.