CBP Issues Guidance on Reporting FTZ Entries From Mexico and Canada as Exempt From Section 232 Tariffs
CBP provided guidance on filing foreign-trade zone entries for goods formerly covered by Section 232 tariffs applied to Mexico and Canada, in a CSMS message dated May 30. Under proclamations issued May 19, goods from Canada and Mexico admitted under privileged foreign status into FTZs that were subject to Section 232 tariffs on aluminum and steel products at the time of admission will not be subject to the duties if entered after the tariffs were lifted, i.e., 12:01 a.m. eastern daylight time on May 20.
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For type 06 entries of steel products with a country of origin of Canada or Mexico that were admitted under privileged foreign status from June 1, 2018, until May 19, 2019, and entered for consumption on or after the Section 232 tariffs were lifted May 20, importers should not report tariff subheading 9903.80.01. Instead, the regular chapter 72 or 73 classification should be reported, along with the product exclusion number STL060000 in the Importer Additional Declaration Field (54 record) of the entry summary data.
Similarly, for aluminum products from Canada and Mexico, the regular chapter 76 classification should be reported instead of subheading 9903.85.01, and the product exclusion number ALU020000 should be reported.
CBP cautioned that the product exclusion numbers that must be reported for each are CBP-generated numbers “to provide for Canadian and Mexican steel and aluminum articles to be entered for consumption from an FTZ without a Section 232 duty, per the Presidential Proclamations.” They do not correspond to any product exclusions granted by the Commerce Department. “Do not use these product exclusion numbers for any other imports or entry types except as specified above,” CBP said.