Trade Groups Ask BIS to Avoid Inclusions on Non-Metal Goods

Hundreds of Section 232 inclusion requests for metal derivatives cover more than $310 billion in annual imports, and imposing 50% tariffs on part of the value of "such a wide array of items, particularly where many products do not meaningfully contain steel or aluminum, risks disrupting sectors far removed from the primary industries targeted by the original Section 232 actions," argued trade groups asking Commerce to slow down before making decisions.

The recent letter was signed by 30 trade groups, covering the auto manufacturing sector, boat manufacturers, medical devices, electronics, retailers, can manufacturers, chemical manufacturers, agriculture interests and broad groups like the National Foreign Trade Council.

"Our members depend on a predictable and transparent trade regime and regulatory environment to plan investments, meet consumer demand, maintain critical infrastructure, and ensure compliance," they wrote. "Many of the affected products are components, replacement parts, and specialized inputs with no viable domestic substitutes."

They argued that 14 days to respond to 945 10-digit inclusion requests is too brief for stakeholders to analyze the full operational and commercial implications. They asked for a 45-day comment period and a public hearing.

They said several of the Harmonized Tariff Schedule codes capture many products that don't contain the metals, particularly HTS subheadings that are characterized as "not elsewhere specified or indicated” (nesoi).

They asked Commerce to create Chapter 99 annexes with product descriptions so that goods under a certain HTS number that are plastic, paperboard or glass are not covered. "While a Section 232 tariff would not be owed on products without steel or aluminum, importers of products that contain no steel or aluminum would still be subject to a massive compliance and documentation burden if the full tariff number is subject to Section 232 duties," they wrote.

They also asked Commerce to publish the criteria it will use to decide on inclusion requests. They asserted that 480 of the 945 HTS categories have had import declines from 2022 to 2023, and argued that BIS should not add any category where imports are declining, since the Section 232 action is based on the premise that imports are increasing and threatening the primary metals industry.

The group also suggested that BIS should:

• consider petitions only from a producer of the proposed product, or, if not, require petitions to outline how imports of the proposed products directly impact their businesses.
• prohibit repeated inclusion requests for the same product after an initial request has been denied.
• evaluate domestic supply and production capacity for requested categories.
• evaluate the difficulty of switching suppliers in sectors that have certifications and qualification procedures.
• evaluate lead times for domestic goods.
• evaluate the impact of granting request on industries that are essential for national security.
• consider the Agreement on Trade in Civil Aircraft, which promised zero-duty treatment.