With the signing of two recent Presidential Proclamations, the U.S. has chosen to take another hardline stance on Russia from an import perspective. Currently, Russia remains one of the world’s top aluminum producers, among other base metals and ore producers. This is troublesome for U.S. importers who still import base metals or derivative metal products from Russia, specifically aluminum. 

Per Presidential Proclamation 10522, as of March 10, 2023, imports of Russian-origin aluminum articles or Russian-origin derivative aluminum articles in which the primary aluminum was smelted or cast in Russia are subject to an ad valorem duty rate of 200%. On April 10, 2023, the reach of the 200% ad valorem tariff is extended to ALL imports of aluminum articles and derivative aluminum articles regardless of origin where any amount of the primary aluminum used in the manufacture of such articles is smelted in Russia or the aluminum products are cast in Russia.  For example, if an import of an unwrought aluminum product of HTS Heading 7601 from Germany contains any primary aluminum from Russia or the aluminum product was cast in Russia and further processed in Germany, the article will still be subject to the 200% ad valorem tariff. However, the tariff actions do not stop there. 

Another Presidential proclamation (Proclamation 10523) in effect starting April 1, 2023 effectively raises the Harmonized Tariff Schedule of the U.S. (HTSUS) Column 2 duty rate on certain Russian imports to 70%. This list of products targets imports in HTSUS Chapters 26, 28, 71, 72, 73, 74, 75, 76, 78, 81, and 87. It is important to note that not all products listed in these tariff code chapters are subject to the new rates, the list is specific to products at the 8-digit subheading level. The products within these codes are primarily ores, chemicals, and various base metal products; however, there is the potential for overlap with the recent actions on Russian aluminum and derivative aluminum products, meaning that importers could be paying up to 270% additional ad valorem tariffs on products on an indefinite basis. 

How do importers know if their products are subject?

There are a few threshold questions that importers can answer to determine if they might be affected by the recent actions.

First, the actions are HTS-specific, meaning only the tariff codes listed in the Annexes to the proclamations are subject to the recent tariff increases. As such, importers must review the respective Annexes to the Presidential proclamations for their specific HTS Heading or 8-digit HTS subheadings to determine if their products are covered. You can also view the aluminum specific Annex here and the Column 2 Annex here. 

If your tariff Headings or subheadings are not listed, then your products are not subject to the recent increases. However, if your products are listed, importers must then determine how they are affected. 

• If your products are of Russian origin AND are listed in either Annex, then as of March 10, your imports are subject to the 200% duty and as of April 1st, they are subject to the additional 70% Column 2 duty rate. 
• If your products are not of Russian origin, then you can disregard Proclamation 10523. 
• If your products are not of Russian origin BUT are aluminum or derivative aluminum products, as listed in the Annex to Proclamation 10522, then it is important to know the definition of “primary aluminum” to determine if you are affected. 

Primary aluminum refers to new aluminum metal produced from alumina (or aluminum oxide) by the electrolytic Hall-Héroult process. This is important to know because importers of the listed aluminum articles now must know where the primary aluminum in their products originates, i.e. is smelted or cast. 

• If ANY amount of the primary aluminum is smelted in Russia and your product is listed in the Annex, your imports are subject to the 200% tariff. 
• If your aluminum articles are listed in the Annex and they are cast in Russia, then your imports are subject to the 200% tariff. 
• If your derivative aluminum articles are listed and ANY amount of the primary aluminum is smelted in Russia, then your imports are subject to the 200% tariff. 
• If your derivative aluminum articles are listed and the aluminum is cast in Russia, then your imports are subject to the 200% tariff. 

Your imports are affected, now what?

From an HTS reporting standpoint, CBP’s Cargo Systems Messaging Service (CSMS) message # 55402109 states that as of March 10, the new HTS classifications that must be reported on entry for the Russian origin aluminum imports are:

• 9903.85.67: “Aluminum articles that are the product of Russia, the foregoing under the terms of note 19(a)(vii)(A) to this subchapter and provided for in the tariff headings or subheadings enumerated in note 19(b) to this subchapter, except any exclusions that may be determined and announced by the Department of Commerce.” 
• 9903.85.68: “Derivative aluminum articles that are products of Russia, when such derivative articles are provided for in the headings or subheadings enumerated in note 19(a)(iii) to this chapter, except any exclusions that may be determined and announced by the Department of Commerce.”

On April 10, 2023, the same HTS classifications are modified to include reference to the non-Russian origin affected products that contain any primary aluminum smelted in Russia or that were cast in Russia:

• 9903.85.67: “ Aluminum articles that are the product of Russia, or where any amount of primary aluminum used in the manufacture of the aluminum articles is smelted in Russia, or where the aluminum articles are cast in Russia, the foregoing under the terms of note 19(a)(vii)(A) to this subchapter and provided for in the tariff headings or subheadings enumerated in note 19(b) to this subchapter, except any exclusions that may be determined and announced by the Department of Commerce
• 9903.85.68: “Derivative aluminum articles that are products of Russia, or where any amount of primary aluminum used in the manufacture of the aluminum articles is smelted in Russia, or where the aluminum articles are cast in Russia, when such derivative articles are provided for in the headings or subheadings enumerated in note 19(a)(iii) to this chapter, except any exclusions that may be determined and announced by the Department of Commerce”

In practice, aluminum importers of the tariff subheadings listed in the Annex to Proclamation 10522 must investigate their supply chain quickly to determine where the primary aluminum of their products originates, including where the aluminum is smelted and/or cast. As of April 10, CBP is requiring these data points be reported in ACE upon entry for the specified tariff subheadings, per CSMS message # 55424218:

Importers of all aluminum articles and aluminum derivative articles from all countries of origin except U.S. origin must report the following information on the entry summary:

• Primary Country of Smelt – the country where the largest volume of new aluminum metal is produced from alumina (or aluminum oxide) by the electrolytic Hall-Héroult process.
• Secondary Country of Smelt – the country where the second largest volume of new aluminum metal is produced from alumina (or aluminum oxide) by the electrolytic Hall-Héroult process.
  • If Russia is not the country reported for the primary country of smelt, and any primary aluminum used in the manufacture of the product was smelted in Russia, report the ISO code for Russia as the secondary country of smelt.
• Country of Cast – the country where the aluminum (with or without alloying elements) was last liquified by heat and cast into a solid state. The final solid state can take the form of either a semi-finished product (slab, billets or ingots) or a finished aluminum product.
• For products of the U.S., filers may report “N/A” for the countries of smelt, and U.S. for country of cast. 

You can review the above CSMS messages for more information about how these actions relate to tariff quotas, Generally Approved Exclusions, and FTZ admissions.

A summary of the aluminum and derivative aluminum products affected by Proclamation 10522 and subject to additional reporting requirements is below, but we suggest reviewing the linked Annex for additional detail:

Aluminum articles:

i) unwrought aluminum provided for in heading 7601:

(ii) bars, rods and profiles provided for in heading 7604; wire provided for in heading 7605;

(iii) plates, sheets and strip provided for in heading 7606; foil provided for in heading 7607;

(iv) tubes, pipes and tube or pipe fittings provided for in heading 7608 and 7609;

(v) castings and forgings of aluminum provided for in subheading 7616.99.51.

Aluminum derivatives articles:

(A) stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and with steel core, not electrically insulated; the foregoing fitted with fittings or made up into articles (described in subheading 7614.10.50);

(B) stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and not with steel core, not electrically insulated; the foregoing comprising electrical conductors, not fitted with fittings or made up into articles (described in subheading 7614.90.20);

(C) stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and not with steel core, not electrically insulated; the foregoing not comprising electrical conductors, not fitted with fittings or made up into articles (described in subheading 7614.90.40);

(D) stranded wire, cables, plaited bands and the like, including slings and similar articles, of aluminum and not with steel core, not electrically insulated; the foregoing fitted with fittings or made up into articles (described in subheading 7614.90.50);

(E) bumper stampings of aluminum, the foregoing comprising parts and accessories of the motor vehicles of heading 8701 to 8705 (described in subheading 8708.10.30); and

(F) body stampings of aluminum, for tractors suitable for agricultural use (described in subheading 8708.29.21).

If you require assistance complying with the new requirements referenced above or determining if you are affected by the recent Presidential Proclamations on Russian products, our attorneys can help! You can contact me at [email protected].