Navigating Section 232: A Guide to Metal Duty Eligibility
- GRF Customs
- May 6
- 6 min read
Updated: May 8
1. Introduction: The Purpose of Section 232 Duties
On April 2, 2026, a significant regulatory shift occurred with the issuance of the Presidential Proclamation, “Strengthening Actions Taken to Adjust Imports of Aluminum, Steel, and Copper into the United States.” The importer, this isn't just another tariff—it is a specialized layer of national security regulation under Section 232 of the Trade Expansion Act of 1962. Its core objective is to protect the domestic industrial base by controlling the volume and origin of metal articles and their derivatives entering the U.S.
The financial implications are massive: effective April 6, 2026, most affected imports face additional ad valorem duties ranging from 10% to 50%, with some penalties reaching as high as 200%. Because these duties are assessed on the full customs value, miscalculating eligibility can result in devastating financial liabilities for an importer.
To avoid these pitfalls, we must move through a rigorous, step-by-step evaluation process, starting with the most basic physical attribute of the product.
2. Step 1: The Content Test (The "Zero Content" Rule)
Before diving into complex tariff schedules, you must perform a simple material audit. The Proclamation lists hundreds of HTSUS codes in its annexes, but inclusion in an annex is only the first half of the eligibility equation.
The "Zero Content" Rule If a product is classified under an HTSUS code listed in the Proclamation's annexes but contains zero aluminum, steel, or copper content, it is entirely exempt from Section 232 duties.
This rule prevents the over-application of duties on products that share a classification with metal goods but are made of entirely different materials (such as plastics or wood). If your product does contain metal, your next move is to determine if the metal content is significant enough to trigger the duty.
3. Step 2: Navigating the 15% Weight Threshold
The Proclamation provides a "logic gate" to distinguish between primary metal products and products where metal is merely a secondary component.
HTSUS Chapter/Category | Weight Threshold Rule | Impact on Duty |
Chapters 72, 73, 74, & 76 | Exempt from the 15% Rule. | Subject to duties regardless of metal weight. |
All Other Chapters | Subject to the 15% Rule. | If metal weight is < 15%, duty is 0% (via 9903.82.03). |
All Other Chapters | Subject to the 15% Rule. | If metal weight is ≥ 15%, full duties apply. |
The "Aggregate Weight" Calculation
When calculating whether a product meets the 15% threshold, you must use the "aggregate weight" of the metals—but with a vital caveat.
Important: You only aggregate the weights of metals specifically identified in Annex IV for that specific HTSUS classification. Do not include the weight of a metal if Annex IV does not list it for your product’s code.
Example (HTSUS 8302.10.60): This code is listed in Annex IV as both a "derivative aluminum article" and a "derivative steel article." To find the threshold, you must combine the weight of the aluminum and the steel. If that sum is ≥ 15% of the total article weight, the duty applies. If the product also contained copper, you would not count the copper weight because copper is not specified for 8302.10.60.
Once you have determined the weight and content, you must select the appropriate HTSUS Chapter 99 heading based on the product’s specific trade scenario.
4. Step 3: HTSUS Heading Selection and Duty Rates
Categorizing these goods requires looking beyond the product to its manufacturing history and country of origin.
Scenario 1: The Russian & Column 2 Penalty
Aluminum (9903.85.67 / 9903.85.68): A 200% duty applies to aluminum articles/derivatives produced in Russia, or containing aluminum smelted or cast in Russia. Crucial: These goods are ineligible for the 15% weight exemption.
Column 2 Derivatives (9903.82.12): Provides a 25% duty for derivative articles from countries subject to Column 2 rates (e.g., Russia/Belarus).
Scenario 2: The UK Smelting Advantage
Headings 9903.82.04 (25%) & 9903.82.05 (15%): Preferential rates for UK goods, provided at least 95% of the metal was smelted, cast, or melted and poured in the United Kingdom.
Scenario 3: Domestic Casting & "Floor Rate" Logic
For goods with at least 95% U.S. smelted/cast/poured content, or specific non-US derivatives, the Proclamation uses "Floor Rates."
The 10% Floor (9903.82.07): If the standard (Column 1) duty is < 10%, the 232 duty is the difference required to make the total 10%.
The 15% Floor (9903.82.10): For certain other derivatives, if the Column 1 rate is < 15%, the 232 duty is the difference required to make the total 15%.
Standard US Preference (9903.82.06): A flat 10% duty for specified US-origin articles.
Scenario 4: The Ticking Clock (The Sunset Clause)
Note that headings 9903.82.07, 9903.82.08, 9903.82.10, 9903.82.11, and 9903.82.12 are temporary. They expire on January 1, 2028, after which these goods will revert to different duty rates.
Scenario 5: Industry-Specific Relief & The "Importer’s Favorite"
Motorcycle Parts (9903.82.13): A specialized carve-out offering 0% duty for parts used in U.S. motorcycle manufacturing.
The 15% Exemption (9903.82.03): The "Importer’s favorite" because it offers 0% duty for goods outside Chapters 72-76 that fall under the 15% weight threshold.
Reporting
Requirement: You must report the aggregate metal weight in kilograms as a "second quantity" on the entry summary.
After determining the rate, you must ensure the goods are handled correctly if they are entering a controlled trade environment like an FTZ.
5. Step 4: Special Status in Foreign Trade Zones (FTZ)
Foreign Trade Zones offer many benefits, but Section 232 goods are restricted to prevent duty avoidance.
Privileged Foreign Status (PFS): This is mandatory for any subject goods entering an FTZ on or after April 6, 2026. By electing PFS, the duty rate and classification are "frozen" at the time of admission. Even if the product is later transformed into something else within the zone, it will still owe the Section 232 duty based on its original state upon withdrawal for consumption.
Domestic Status: Applies only to goods that are already duty-paid or of U.S. origin. These are not subject to the 232 duties when moving into a zone.
While FTZs lock in the duty, other provisions in the HTSUS determine how these duties interact with refunds and other special programs.
6. Step 5: Interactions with Other Provisions (Drawback & Chapter 98/99)
Section 232 does not "stack" or disappear easily; it follows a strict Rule of Precedence:
Manufacturing Drawback: Per 19 U.S.C. 1313(a)-(b), importers can claim a refund of Section 232 duties if the imported metal is used to manufacture a finished product that is subsequently exported.
Chapter 98 (Subheading 9802.00.60): Normally, goods returned after repair are taxed only on the value of the repair. However, for Section 232 goods, the duty is assessed on the full value of the imported article.
Chapter 99 (Precedence): You cannot use other Chapter 99 headings (which might offer exemptions or lower rates) to bypass Section 232. Furthermore, Section 232 duties are applied in addition to any Antidumping (AD) or Countervailing Duties (CVD).
Summary: The Duty Eligibility Checklist
Importers may use this sequence for every metal import evaluation:
Metal Presence: Does the item contain any aluminum, steel, or copper? (If no, it is exempt).
Chapter Check: Is it classified in Chapters 72, 73, 74, or 76? (If yes, duties apply regardless of weight).
Weight Threshold: If in any other chapter, is the aggregate weight of specifically listed metals \ ≥ 15%?
If < 15%, use Heading 9903.82.03 (0% duty) and report weight in kg.
Origin & "95% Rule":
Is it from Russia? (200% duty on aluminum; 10-50% on others; No weight exemption for aluminum).
Is it from the UK or US? (Verify if 95% was smelted/cast/poured in that country to qualify for preferential rates).
Floor Rate Check: For headings like 9903.82.07 or 9903.82.10, does the Column 1 duty already meet the 10% or 15% minimum?
Sunset Date: Is the entry date before or after January 1, 2028?
FTZ Status: If admitted to a zone, is it designated as Privileged Foreign Status?
Special Provisions: Are you evaluating the full value for Chapter 98 or pursuing a Manufacturing Drawback?
Source:CSMS # 68253075 - GUIDANCE: Section 232 Duties on Imports of Aluminum, Steel, and Copper, dated April 3rd, 2026.
Click play on the video below to watch the explainer
After the publication of this new article, Customs published an additional CSMS updating the guidance as found on the PDF document below.
CSMS # 68554727 - GUIDANCE: Technical Corrections to Section 232 Duties on Imports of Aluminum, Steel, and Copper - This bulletin provides the specific May 4, 2026, metals list update.
Click play on the video below to watch the explainer
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