Aluminum Trade Body Seeks Rectification of Section 232 Tariff Exclusion System

SEATTLE (Scrap Monster): Arlington, Virginia-based the Aluminum Association, in a letter addressed to Wilbur Ross, Commerce Secretary, has called for significant reforms to the Section 232 aluminum tariff exclusion system.

Under the current system, imports are eligible to request for exclusion from payment of 10% import tariff on specific aluminium products entering the country. As a result, import volumes of certain aluminum products such as aluminum can stock, plate, sheet and foil have seen dramatic surge. This has badly impacted the domestic producers of these products, the association noted.

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Tom Dobbins, president and CEO of the Aluminum Association stated that many firms are forced to dedicate personnel to monitor and respond to Section 232 requests, even during these crucial times. This had badly impacted U.S. domestic manufacturing supply chains, he added. Since the inception of the program, the U.S. Commerce Department has granted over 8 billion pounds of can sheet exclusion requests, whereas the entire size of the domestic can sheet market is estimated at only around 3.8 billion pounds.

The Association reiterated its demand that exclusions should be allowed only for products outside of the capability of domestic producers or for those products which are not manufactured by domestic producers. In addition, there should be stricter analysis of tariff exclusion requests, it said.