Commerce to Require Aluminum Import Licenses Beginning Jan. 25

New licensing requirements for aluminum products are now set to begin Jan. 25, 2021, under a Commerce Department final rule creating a new Aluminum Import Monitoring and Analysis System. Similar to the Steel Import Monitoring and Analysis System in place since 2005, the new scheme requires importers of aluminum or their customs brokers to submit information in an online portal to obtain an automatically issued license, then submit the license number with entry summary documentation.

According to Commerce, the new system is necessary to monitor aluminum import levels, which would be made publicly available on a public website. As part of exemptions from Section 232 aluminum tariffs for Canada and Mexico, the U.S. may monitor for import surges and limit imports to historic quantities “without meaningful increases,” Commerce said. The new system will “facilitate the monitoring of imports of aluminum articles, including monitoring for import surges,” the agency said.

The new system will be online at https://www.trade.gov/aluminum and ready for use on Jan. 4, at which point “potential license applicants will be able to obtain their user identification numbers and apply for license,” Commerce said. Commerce will also offer a series of virtual demonstrations of the new system on that website, it said in the final rule, set for publication in the Dec. 23 Federal Register.

Commerce made only minor changes from a proposed rule it issued April 29. While the agency had previously listed the “country where aluminum was smelted and poured” as a required data element to obtain a license, Commerce will now require three separate data elements: (1) the country where the largest volume of primary aluminum used in the manufacture of the imported aluminum product was smelted, (2) the country where the second largest volume of primary aluminum used in the manufacture of the imported aluminum product was smelted; and (3) the country where the aluminum used in the imported aluminum product was most recently cast.

After the system is in place, Commerce will seek additional comments on potential improvements or changes to the system in a subsequent notice, it said. Commerce said it may address several additional issues raised by commenters in that second comment period.

Requirements for Aluminum Licenses Similar to Steel Import Monitoring System

The new aluminum licensing and monitoring system will “operate in a similar manner as the existing SIMA system,” Commerce said. The requirements apply to “basic aluminum products” under the following tariff schedule headings and subheadings: 7601, 7604, 7605, 7606, 7607, 7608, 7609, 7616.99.51.60 and 7616.99.51.70.

After registering on the new system, importers or their brokers will have to provide all the following information for each shipment prior to filing the entry summary:

• Filer company name and address
• Filer contact name, phone number, fax number and email address
• Entry type (i.e., Consumption, Foreign-Trade Zone)
• Importer name
• Exporter name
• Manufacturer name (filer may state “unknown”)
• Country of origin
• Country of exportation
• Expected date of export
• Expected date of import
• Expected port of entry
• Current HTS number (from Chapters 76)
• Country where the largest volume of primary aluminum used in the manufacture of the product was smelted*
• Country where the second largest volume of primary aluminum used in the manufacture of the product was smelted*
• Country where the product was most recently cast
• Quantity (in kilograms)
• Customs value (in U.S. $ amount).

*Importers may say “not applicable” in this field if the product contains only secondary and no primary aluminum. Additionally, importers may say “unknown” for these fields until Dec. 23, 2021, after which they must provide the requested information.

After the form is completed in the system, the system will automatically issue an aluminum import license number. The license number will be required on every entry summary for aluminum products covered by the licensing requirement. A single license can cover multiple products if certain information is the same for the shipment, or separate licenses may be required for a single shipment if that information differs. A sample copy of the proposed aluminum import license is available for viewing on Commerce’s website.

Exemptions, modified requirements for low-value entries. No import licenses would be required on informal entries of aluminum products (i.e., entries under $2,500 that comply with other CBP requirements for informal entry.) For shipments containing less than $5,000 in aluminum, applicants would be able to apply for a reusable Low-Value License that can be used in lieu of a single-entry license for low-value entries, Commerce said.

FTZ entries require license. Although CBP entry is not required, Commerce would still require a license for aluminum shipped into a foreign-trade zone, it said. “The license number(s) must be reported on the FTZ admission documents and/or status designation (Customs Form 214) at the time of filing,” Commerce said. “As with steel, a separate license will not be required upon withdrawal from the FTZ,” the agency said.

Licenses valid for 75 days. The aluminum import licenses may be applied for up to 60 days before the expected date of importation, and until the date of filing of the entry summary, Commerce said. “The aluminum import license is valid for up to 75 days; however, import licenses that were valid on the date of importation but expired prior to the filing of entry summary data will be accepted,” it said.

Copies must be maintained in records. “There is no requirement to present physical copies of the license forms at the time of entry summary; however, copies must be maintained in accordance with CBP’s normal requirements,” Commerce said.

Non-Confidential Data Posted on Commerce Websites

Commerce will report only “certain aggregate information” collected from license applications on an aluminum import surge monitoring website, including data on country of origin, country where the largest volume of primary aluminum used in the manufacture of the product was smelted, country where the second largest volume of primary aluminum used in the manufacture of the product was smelted, country of most recent cast, relevant aluminum product grouping, and import quantity and value, Commerce said.