Dear Client,
As you know, at President Trump’s direction in March 2018, CBP began collecting duties on steel and aluminum items that were classified in certain HTSUS as defined in the Presidential Proclamations 9704 and 9705. On February 10, 2025 President Trump issued the Aluminum Presidential Proclamation that set aluminum duties at 25% but also added a 25% tariff on the prior aluminum products covered by the earlier Presidential proclamations, plus added more products classified as aluminum (Chapter 76) but also added products that contain aluminum but are not classified as (all collectively referred to as derivative products). The derivative product list is based upon HTSUS numbers spelled out in Federal Register Notice – Department of Commerce Docket Number: 250226-0028. At the time of the Federal Register Notice, there was no direction provided by CBP on how the value of the aluminum content in derivative products was to be valued and entered (and the same process held true for steel goods as well).
In the absence of direction or guidance from CBP, Taggart took the approach that it would make sense to try to gather the value of these metals in the derivative products from the supplier so that the value of the appropriate metals could be reported versus the full value of the derivative products. However, on 21 March 2025 CBP posted an FAQ on their website addressing this very valuation issue (see link and text below).
It is now Taggart’s opinion that unless the US Importer of Record is able to provide CBP copies of invoices paid BY the buyer of the steel / aluminum content (which would likely be the actual manufacturer of the metal good itself), CBP WILL LIKELY NOT accept a lower value for the metal content of the derivative products. That means the full value of the derivative good would be subject to the 25% additional iron/steel or aluminum tariffs. It is ultimately the US Importer of Record’s decision of what to provide to their Customs broker to report for entry valuation purposes. Accordingly, Taggart will accept the values provided to us to file entry. However, we will require the Importer to acknowledge receipt of our advice and that Taggart can only assume such documentation can be provided by the Importers should CBP request such documentation at a later date.
https://www.cbp.gov/trade/programs-administration/entry-summary/232-tariffs-aluminum-and-steel/faqs
The value of the steel/aluminum content should be determined in accordance with the principles of the Customs Valuation Agreement, as implemented in 19 U.S.C. 1401a. Thus, the value of the steel/aluminum content is the total price paid or payable for that content, which is the total payment (direct or indirect, and exclusive of any costs, charges, or expenses incurred for transportation, insurance, and related services incident to the international shipment of the merchandise from the country of exportation to the country of importation) made/to be made for the steel/aluminum content by the buyer to, or for the benefit of, the seller of the steel/aluminum content. Normally, this would be based on the invoice paid by the buyer of the steel/aluminum content to, or for the benefit of the seller of the steel/aluminum content.
Presidential Proclamation 9704 – Adjusting Aluminum Imports
(1) For the purposes of this proclamation, ‘‘aluminum articles’’ are defined in the Harmonized Tariff Schedule (HTS) as: (a) unwrought aluminum (HTS 7601); (b) aluminum bars, rods, and profiles (HTS 7604); (c) aluminum wire (HTS 7605); (d) aluminum plate, sheet, strip, and foil (flat rolled products) (HTS 7606 and 7607); (e) aluminum tubes and pipes and tube and pipe fitting (HTS 7608 and 7609); and (f) aluminum castings and forgings (HTS 7616.99.51.60 and 7616.99.51.70), including any subsequent revisions to these HTS classifications.
Presidential Proclamation 9705 – Adjusting Steel Imports
For the purposes of this proclamation, “steel articles” are defined at the Harmonized Tariff Schedule (HTS) 6-digit level as: 7206.10 through 7216.50, 7216.99 through 7301.10, 7302.10, 7302.40 through 7302.90, and 7304.10 through 7306.90, including any subsequent revisions to these HTS classifications.
Best Regards,
Pam Mallette, LCB, CCS, CES
Director – Customs Brokerage and Compliance
