Tariff Update – March 12, 2025
Washington, DC, 12 MAR, 2025 – Government gives importers less than 3 hours notice before requiring them to pay 25% tariffs on aluminum and steel derivative products classified outside of chapters 72, 73, and 76.
Yesterday, at 9:05 pm EST (steel) and 9:24 pm EST (aluminum), the government gave importers, brokers and the trade community less than 3 hours notice that they must pay the 25% Section 232 tariff on aluminum and steel products classified outside of Chapter 72 (iron), 73 (steel) and 76 (aluminum) of the Harmonized Tariff Schedule of the United States (HTSUS). To be sure, about one month ago, on February 10, 2025, the White House announced new Section 232 expansionary tariffs on aluminum and steel. At the time, the White House said aluminum and steel products and certain aluminum and steel derivative (downstream) products — namely, those classified in Chapter 72 (iron), 73 (steel) and 76 (aluminum) -- would be subject to the Section 232 25% tariff effective at 12:01 am EST on March 12th (today). However, in the February 10, 2025 Proclamations, the White House punted on the effective date for the other aluminum and steel derivate (downstream) products, namely those classified outside of Chapters 72 (iron), 73 (steel) and 76 (aluminum). For those articles, the White House limited the 25% tariffs to just the aluminum and steel content in the goods, not the full value of the goods. The Proclamations stated that these tariffs would not be be effective [until] public notification by the Secretary of Commerce, that adequate systems are in place to fully, efficiently, and expediently process and collect tariff revenue for covered articles. Emphasis added. Nowhere, of course, did the White House, Commerce or CBP consider whether a key stakeholder in the process, namely businesses and customs brokers, would have adequate systems in place to fully, efficiently and expediently pay such tariff revenue. Since February 10, 2025, most responsible importers have been working feverishly to ascertain the value of the aluminum and steel contained in their products that fall in the derivative list covering products outside of Chapters 72 (iron), 73 (steel) and 76 (aluminum). For many importers, especially ones with thousands or hundreds of thousands of affected part numbers, or whose suppliers buy the steel and aluminum components from distributors, this is a herculean task. Requests need to be sent to suppliers - of which there could be hundreds or even thousands. Data fields in importer and supplier ERP systems -- not to mention EDI feeds with customs brokers -- need to be modified to accommodate this new type of data. Data fields also need to be created or modified to capture the country of smelt/cast (aluminum) or melt/pour (steel). And, just days ago, CBP announced, not just the value and origin, but also the weight of the aluminum and steel contained in a product would have to be reported for every single affected derivative product, creating yet another data point needing a system in order to accurately pay tariffs. Against the above backdrop, the Commerce Department, at 4:45 pm EST yesterday, quietly uploaded for public inspection a bombshell Federal Register document with regard to derivative products classified outside of Chapters 72, 73 and 76. Commerce Secretary Howard Lutnick announced: I, as Secretary of the United States Department of Commerce, certify that adequate systems are in place to fully, efficiently, and expediently process and collect tariff revenue for covered [steel and aluminum] articles The public inspection notice for this important announcement indicated a March 14, 2025, Federal Register publication date:
About 3 hours later, around 9 pm EST — and a mere 3 hours before the start of the 25% tariffs — CBP issued CSMS Messages CSMS # 64384423 and CSMS # 64384496 to tell importers to start paying the 25% tariff on derivative products classified outside of Chapters 72, 73, and 76 in just under 3 hours.
It bears remembering that a mere 2 days ago, CBP had stated (in CSMS Messages 64348288 and 64348111):
Effective with respect to steel articles and derivative steel articles entered for consumption, or withdrawn from warehouse for consumption, on or after a date to be certified in the Federal Register by the Secretary of Commerce, the following HTS classification and 25 percent duty rate applies to the value of the steel content:
- 9903.81.91: Derivative iron or steel products listed in subdivision (n) (new steel derivative articles not classified in Chapter 73 subject to Section 232): the import duty is on the value of the steel content (see instructions below).9903.81.91 also applies to such goods that were admitted to a U.S. foreign trade zone and granted "privileged foreign status" before March 12, 2025, and entered for consumption, or withdrawn from warehouse for consumption, on or after a date to be certified in the Federal Register by theSecretary of Commerce (see Foreign Trade Zone section below).
Effective with respect to aluminum articles and derivative aluminum articles entered for consumption, or withdrawn from warehouse for consumption, on or after a date to be certified in the Federal Register by the Secretary of Commerce, the following HTS classification and 25 percent duty rate applies:
9903.85.08: Derivative aluminum products listed in subdivision (k) (new aluminum derivative articles not classified in Chapter 76 subject to Section 232): the import duty is based upon the value of the aluminum content (see instructions below).
Emphasis added. The 9 pm EST announcements issued yesterday now state:
Effective with respect to aluminum articles and derivative aluminum articles entered for consumption, or withdrawn from warehouse for consumption, on or after March 12, 2025, the following HTS classification and 25 percent duty rate applies to the value of the aluminum content:
- 9903.85.08: Derivative aluminum products listed in subdivision (k) (new aluminum derivative articles not classified in Chapter 76 subject to Section 232): the import duty is based upon the value of the aluminum content (see instructions below).
Effective with respect to steel articles and derivative steel articles entered for consumption, or withdrawn from warehouse for consumption, on or after March 12, 2025, the following HTS classification and 25 percent duty rate applies to the value of the steel content:
- 9903.81.91: Derivative iron or steel products listed in subdivision (n) (new steel derivative articles not classified in Chapter 73 subject to Section 232): the import duty is on the value of the steel content (see instructions below).
Emphasis added. Both CSMS messages ominously end with:
CBP expects full compliance from the trade community for accurate reporting and payment of the additional duties. CBP will take enforcement action for non-compliance
leaving a mere 3 hours, not 3 days (March 11 to March 14), for importers to comply. Legal challenges to the 3 hour notice are surely under review.
IMPORTANT INSTRUCTIONS
Please thoroughly review the attached tariff lists to see if any of your products are affected. Please use the attached worksheet to report the required information for entry. You must send the worksheet for each product. Shipments will be held without this information and will be processed once it is received.
CBP has stated in previous notices that importer must use any means possible to determine the correctness of the following required information:
- country of origin (manufacture) of the steel or aluminum content for all affected HS codes
- the weight in kgs for all HS codes. For derivatives, the weight in kgs of the steel or aluminum content
- the value of the aluminum and steel content for derivatives classified outside of 72, 73, and 76
- the country of smelt and cast for aluminum for all HS codes
- county of melt and pour for steel for all HS codes
We will advise you of any updates as they are received.
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