April 2021 - The Court of International Trade (CIT), in a a recent decision granted an importer’s claim
(Prime Source Building Products v. United States) that the presidential proclamation extending the
Section 232 tariffs on steel and aluminum derivatives were unlawful. CIT determined that
the proclamation was issued beyond the time limit set forth in Section 232 and was therefore
outside the executive branch’s authority.

The court’s decision is likely to be appealed. However, NNR USA recommends
Importers of steel and aluminum derivatives subject to Section 232 duties contact a Trade
Attorney to preserve their right to potential duty refunds.

Background Info: Beginning June 2018 and pursuant to Section 232 of the Trade Expansion Act of
1962, the U.S. assessed additional duties on steel (25%) and aluminum (10%) products. In
February 2020, the list was expanded to include derivatives of steel and aluminum products. In
conjunction with the Proclamation, Commerce released Annex I (aluminum) and Annex II (steel),
which identified the specific derivative articles subject to the new tariffs. The aluminum derivative
articles included certain stranded wire, cables, plaited bands, slings, bumper stampings, and body
stampings – HTS headings 7614 and 8708. The steel derivative articles included certain nails and
tacks (other than thumbtacks, drawing pins, corrugated nails, staples, bumper stampings, and
body stampings) – HTS headings 7317 and 8708.