Update on 201 Steel Safeguards

March 22, 2002

USTR Corrections

On March 19^th, the Office of the U.S. Trade Representative (USTR) published a number of technical corrections to 201 Safeguard duties on steel in the Federal Register, 67 FR 12635.  The USTR notice corrects errors made in the new U.S. Note 11 and the Chapter 99 tariff numbers as follows:

• Physical dimensions or chemical composition of certain products excluded from the application of these safeguard measures; and
  
  
• The exclusion of certain steel products of certain developing World Trade Organization (WTO) member countries from these safeguard measures. 

Specifically, iron or steel tube and pipe fittings under HTS 9903.73.93 - 9903.73.95 from Thailand are not excluded from the applicable increased duties, as was formerly stated.

Customs T.D. 02-12

On March 20^th, 2002, Customs published T.D. 02-12 to the Federal Register in order to accommodate the WTO negotiations that will take place within the first 30 days of the safeguard action. The duty deferral is provided in the event that a modification to the order takes place as a result of the negotiations. 

Customs expects to soon officially issue instructions to the field to implement the deferral.  However, our conversations with Customs have indicated that Brokers should be aware of the following in regard to steel entries subject to the 201 duties:

• Importers will incur liability for section 201 duties for items imported from March 20^th to April 19^th during the deferral period (although the amount of the 201 duties might later be modified downward pursuant to the results of WTO negotiations);

• Importers will not be required to post special bonds, but the local port could require bond amounts to be increased if bonds appear insufficient to cover estimated duties;

• Interest will not be charged on the delayed 201 duties;

• Subject steel products may be transmitted using the Automated Broker Interface (ABI) both during and after the deferral period;

• The entry summary must designate both the normal Chapter 77 and 99 tariff numbers during and after the deferral period;
  
  
• The deferral does not affect the Chapter 77 general steel duties on entry.  These still must be deposited on entry pursuant to 19 CFR section 141.101; and
  
  
• On April 19^th, the deposits of safeguard duties on entry will again be required.  Importers failing to deposit duties on subject steel on or after April 19^th will receive late payment notices from Customs.

If you have any questions on any of the issues raised in this newsletter, please contact George R. Tuttle, III at (415) 288-0428 or via email at geo@tuttlelaw.com.

George R. Tuttle, III is an attorney with the Law Offices of George R. Tuttle in San Francisco. The information in this article is general in nature and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.

Copyright © 2002 by Tuttle Law Offices. 

All rights reserved.  Information has been obtained from sources believed to be reliable.  However, because of the possibility of human or mechanical error by our offices or by others, we do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors, omissions, or for the results obtained from the use of such information.

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