Commerce Department announces steel tariff exemption process

The US Department of Commerce announced a process for companies that import steel and aluminum to be excluded from tariffs ordered by President Donald Trump more than 2 weeks earlier (OGJ Online, Mar. 2, 2018). “Starting tomorrow, domestic industry will be able to apply for exclusions through a fair and transparent process run through Commerce’s Bureau of Industry and Security,” Commerce Sec. Wilbur L. Ross said.

Officials in the oil and gas industry, which uses imported steel not only for pipelines but also in other operations, expressed concern when Trump issued the order and subsequently called for exclusions. Eight oil and gas association leaders jointly urged Trump to at least allow exemptions for energy projects’ materials if he moved ahead with imposing the tariffs (OGJ Online, Mar. 7, 2018).

American Petroleum Institute Pres. Jack N. Gerard called for a process on Mar. 19 that is both transparent and flexible. “We expect the department will acknowledge various market realities and take into consideration the complex supply chains of the US oil and gas industry and the need for specialty steel not available domestically for many of its projects,” he said.

The industry also relies on global steel imports for exploration and production onshore and offshore, refining and petrochemical manufacturing, and LNG terminals, Gerard noted.

Ross said that he, in consultation with other administration officials, will evaluate exemption requests in relation to national security, the rationale under which he previously concluded that excessive steel and aluminum imports threaten US national security which led to Trump’s order.

In that evaluation, the secretary said he would consider whether a product is produced in the US in a satisfactory quality or in a sufficient and reasonably available amount. A single response to each exclusion request will be posted on regulations.gov, he indicated.

Commerce’s announcement said that only individuals or organizations using steel or aluminum articles identified in Presidential Proclamations 9704 and 9705 and engaged in US business activities may submit exclusion requests, which will be posted for a 30-day comment period.

Separate requests must be submitted for each unique steel or aluminum product import. For an exclusion request to be considered, the requester must provide a full factual description of the specific product, its properties, and its quantity, it indicated.

Contact Nick Snow at [email protected].