<p>United States Secretary of Commerce Ms Gina M Raimondo & United States Trade Representative Ms Katherine C Tai announced a new 232 tariff agreement with Japan to allow historically-based sustainable volumes of Japanese steel products to enter the US market without the application of Section 232 tariffs. Ms Raimondo said “I’m pleased to announce the deal we reached will strengthen America’s steel industry and ensure its workforce stays competitive, while also providing more access to cheaper steel and addressing a major irritant between the United States and Japan, one of our most important allies. Today’s announcement builds on the deal we struck with the EU and will further help us rebuild relationships with our allies around the world as we work to fight against China’s unfair trade practices and create a more competitive global economy for America’s families, businesses and workers.</p><p>She added “I’d like to sincerely thank our counterpart at Japan’s Minister of Economy, Trade and Industry Mr Hagiuda Koichi, for his determination and resolve, as well as Ambassador Mr Rahm Emanuel for his partnership in this effort.”</p><p>The United States will replace the existing 25 percent tariff on Japan’s steel products under Section 2321 with a tariff-rate quota with a date of effectiveness of April 1, 2022. Under the TRQ arrangement, historically-based volumes of Japan’s steel products will enter the US market without the application of Section 232 tariffs as follows</p><p>1. TRQ Amount: The aggregate annual import volume under the TRQ is set at 1.25 million tonnes under 54 product categories and allocated in line with the 2018-2019 historical period</p><p>2. Derivative Products: Imports of derivative articles of steel, as referenced in Proclamation 9980 from Japan will not be subject to Section 232 duties</p><p>3. Eligible products: In order to be eligible for duty-free treatment under the quota, steel imports must be “melted and poured” in Japan according to current US requirements and rules implementing this arrangement. An importer shall provide relevant documentation substantiating compliance with US requirements. Failure to comply could result in remedies and/or penalties as provided for under US law</p><p>4. Exclusions: The United States will maintain its exclusions process, as implemented under Section 232 of the Trade Expansion Act of 1962, available for steel products imported from Japan.</p><p>5. Tariff Rate: Section 232 steel products from Japan that are within-quota will enter free of any Section 232 duty while all Section 232 steel products entering above-quota will continue to be subject to a Section 232 duty of 25%, provided that they are not subject to an exclusion as per point 4 above.</p><p>6. The TRQ will be calculated for each year of the measure and administered on a quarterly basis. Any unused TRQ volume from the first quarter of the year, up to 4 percent of the allocated quota for that quarter, will roll over to the third quarter; any unused TRQ volume from the second quarter of the year, subject to the same limit, will roll over into the fourth quarter; and any unused TRQ volume from the third quarter, subject to the same limit, will roll over into the first quarter of the following year. The TRQ will be allocated on a first-come, first-served basis for each product category.</p><p>7. The United States will conduct annual reviews of the TRQ to calculate the level of US steel apparent consumption in the previous year when such data becomes available from the World Steel Association. For each 6% that this calculated level is above or below US steel demand in 2021, the TRQ volume would increase or decrease, respectively, by 3%</p><p>8. Starting no later than July 1, 2022, the United States will evaluate utilization and administration of the TRQ every three months and, at the request of Japan, enter into consultations to address any substantial under-use of the TRQ.</p>
<p>United States Secretary of Commerce Ms Gina M Raimondo & United States Trade Representative Ms Katherine C Tai announced a new 232 tariff agreement with Japan to allow historically-based sustainable volumes of Japanese steel products to enter the US market without the application of Section 232 tariffs. Ms Raimondo said “I’m pleased to announce the deal we reached will strengthen America’s steel industry and ensure its workforce stays competitive, while also providing more access to cheaper steel and addressing a major irritant between the United States and Japan, one of our most important allies. Today’s announcement builds on the deal we struck with the EU and will further help us rebuild relationships with our allies around the world as we work to fight against China’s unfair trade practices and create a more competitive global economy for America’s families, businesses and workers.</p><p>She added “I’d like to sincerely thank our counterpart at Japan’s Minister of Economy, Trade and Industry Mr Hagiuda Koichi, for his determination and resolve, as well as Ambassador Mr Rahm Emanuel for his partnership in this effort.”</p><p>The United States will replace the existing 25 percent tariff on Japan’s steel products under Section 2321 with a tariff-rate quota with a date of effectiveness of April 1, 2022. Under the TRQ arrangement, historically-based volumes of Japan’s steel products will enter the US market without the application of Section 232 tariffs as follows</p><p>1. TRQ Amount: The aggregate annual import volume under the TRQ is set at 1.25 million tonnes under 54 product categories and allocated in line with the 2018-2019 historical period</p><p>2. Derivative Products: Imports of derivative articles of steel, as referenced in Proclamation 9980 from Japan will not be subject to Section 232 duties</p><p>3. Eligible products: In order to be eligible for duty-free treatment under the quota, steel imports must be “melted and poured” in Japan according to current US requirements and rules implementing this arrangement. An importer shall provide relevant documentation substantiating compliance with US requirements. Failure to comply could result in remedies and/or penalties as provided for under US law</p><p>4. Exclusions: The United States will maintain its exclusions process, as implemented under Section 232 of the Trade Expansion Act of 1962, available for steel products imported from Japan.</p><p>5. Tariff Rate: Section 232 steel products from Japan that are within-quota will enter free of any Section 232 duty while all Section 232 steel products entering above-quota will continue to be subject to a Section 232 duty of 25%, provided that they are not subject to an exclusion as per point 4 above.</p><p>6. The TRQ will be calculated for each year of the measure and administered on a quarterly basis. Any unused TRQ volume from the first quarter of the year, up to 4 percent of the allocated quota for that quarter, will roll over to the third quarter; any unused TRQ volume from the second quarter of the year, subject to the same limit, will roll over into the fourth quarter; and any unused TRQ volume from the third quarter, subject to the same limit, will roll over into the first quarter of the following year. The TRQ will be allocated on a first-come, first-served basis for each product category.</p><p>7. The United States will conduct annual reviews of the TRQ to calculate the level of US steel apparent consumption in the previous year when such data becomes available from the World Steel Association. For each 6% that this calculated level is above or below US steel demand in 2021, the TRQ volume would increase or decrease, respectively, by 3%</p><p>8. Starting no later than July 1, 2022, the United States will evaluate utilization and administration of the TRQ every three months and, at the request of Japan, enter into consultations to address any substantial under-use of the TRQ.</p>
