UPDATE: Additional Duty on Imports of Steel and Aluminum Articles under Section 232
Related CSMS:  18-000240, 18-000249, 18-000257, 18-000258, 18-000296, 18-000317, 18-000352
BACKGROUND:
On March 8, 2018, the President issued Proclamations 9704 and 9705 on Adjusting Imports of Steel and Aluminum into the United States, under Section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862), providing for additional import duties for steel mill and aluminum articles, effective March 23, 2018.  See the Federal Register, 83 FR 11619 and 83 FR 11625, March 15, 2018.  On March 22, 2018, the President issued Proclamations on Adjusting Imports of Steel and Aluminum into the United States. See the Federal Register, 83 FR 13355 and 83 FR 13361, March 28, 2018.  On April 30, 2018, the President issued Proclamations 9739 and 9740 on Adjusting Imports of Steel and Aluminum into the United States.  See the Federal Register, 83 FR 20683 and 83 FR 20677, May 7, 2018.  On May 31, 2018, the President issued Proclamations on Adjusting Imports of Steel and Aluminum into the United States.
These duty requirements are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on March 23, 2018.
COMMODITY:
Steel mill and aluminum articles, as specified in the Presidential Proclamations.
COUNTRIES COVERED BY SECTION 232 IMPORT DUTIES:
Please note that the Section 232 measures are based on the country of origin, not the country of export.
Steel:
As of June 1, 2018:  All countries of origin except Argentina, Australia, Brazil, and South Korea.
Aluminum:
As of June 1, 2018:  All countries of origin except Argentina and Australia.
COUNTRIES COVERED BY SECTION 232 ABSOLUTE QUOTAS:
Steel:
As of June 1, 2018:  Argentina, Brazil, and South Korea.
Aluminum:
As of June 1, 2018:  Argentina.
For both steel and aluminum, imports of United States origin are not covered by the Section 232 measures.
FILING INSTRUCTIONS:
SECTION 232 IMPORT DUTIES:
Use non-quota entry type codes.
UPDATE:  As of June 1, 2018, for all imports of aluminum from South Korea, importers should also use non-quota entry type codes.
Steel Products
In addition to reporting the regular Chapters 72 & 73 of the Harmonized Tariff Schedule (HTS) classification for the imported merchandise, importers shall report the following HTS classification for imported merchandise subject to the additional duty:
9903.80.01 (25 percent ad valorem additional duty for steel mill products)

Aluminum Products
In addition to reporting the regular Chapter 76 of the HTS classification for the imported merchandise, importers shall report the following HTS classification for imported merchandise subject to the additional duty:
9903.85.01 (10 percent ad valorem additional duty for aluminum products)
SECTION 232 ABSOLUTE QUOTAS:
Use quota entry type codes (entry types 02, 06, 07, 12, 23, 32, 38, or 52).
For further guidance, see CBP quota bulletins at https://www.cbp.gov/trade/quota/bulletins
Generalized System of Preferences (GSP) and African Growth and Opportunity Act (AGOA)
GSP and AGOA-eligible goods that are subject to Section 232 duties or quotas may not receive GSP or AGOA duty preference in accordance with 19 USC 2463(b)(2).
On imports subject to Section 232 duties or quotas (including imports from Argentina and Brazil), in addition to any applicable Section 232 duties, importers should pay the normal trade relations (column 1) duty rates and not submit the GSP Special Program Indicator (SPI) “A” or the AGOA SPI “D”
FOR FURTHER INFORMATION:
For more information, please refer to the Presidential Proclamations on Adjusting Imports of Steel and Aluminum into the United States, Federal Register, 83 FR 11619 and 83 FR 11625, March 15, 2018; the March 22, 2018 Presidential Proclamations on Adjusting Imports of Steel and Aluminum into the United States. 83 FR 13355 and 83 FR 13361, March 28, 2018; and the April 30, 2018 Proclamations on Adjusting Imports of Steel and Aluminum into the United States. 83 FR 20683 and 83 FR 20677, May 7, 2018; and the May 31, 2018, Proclamations on Adjusting Imports of Steel and Aluminum into the United States.
Also see Frequently Asked Questions at https://www.cbp.gov/trade/programs-administration/entry-summary/232-tariffs-aluminum-and-steel
Questions related to Section 232 entry filing requirements should be emailed to traderemedy@cbp.dhs.gov.  Questions from the importing community concerning ACE rejections should be referred to their Client Representative.

NEW REQUIREMENTS FOR EXPORTS TO CHINA
ADJUSTMENT TO CHINA CUSTOMS ADVANCED MANIFEST (CCAM) REGULATIONS
Advisory, Customer Services
General Administration of Customs China (GACC) has released Order No.56 [2017] to adjust the Advanced Manifest rule (GACC advisory in Chinese) to ensure smooth customs clearance and effectively strengthen customs’ implementation of safe entry and risk prevention for import and export goods into/from China.
The rule will be effective from 1st June 2018 and includes the implementation of following.
1.China Customs Advanced Manifest (CCAM) enforcement wherein Advanced Manifest must be submitted to China Customs 24 hours prior to cargo loading on vessels sailing to/from China mainland ports.

2.The manifest data must be accurate and complete for all goods under the Bill of Lading (BL).

3.Full details of the Shipper and Consignee (or Notify Party if Consignee is To Order) must be provided in the shipping instruction (SI). Due to this adjustment in policy, Enterprise codes are newly required as follows.
In accordance with China Customs requirements, we will require the following information upon booking for cargo destined to China to ensure that shipments will not be delayed or denied entry into the People’s Republic of China:
o Shipper contact name and phone number
o Shipper Tax ID or Unified Social Credit Code (USCI)
o Consignee contact name and phone number
o Consignee Tax ID or Unified Social Credit Code (USCI)
To comply with the above regulatory requirements and ensure no delays with China Customs clearance, please ensure to provide the data in your shipping instruction (SI) for vessels loading to China from 1st June 2018 onwards. Please follow the documentation cut off as advised by your nearest booking office.
We will keep you informed of any further development.
If you have any questions, please contact your BOC Representative.
Thank you for your support.

 Cargo Insurance: General Average Article
May 18, 2018 by The Loadstar
Shippers with Cargo on Maersk Honam Face Hefty Bill to Get it Released
Maersk Honam fire in the Arabian Sea.
By Gavin van Marle (The Loadstar) – Shippers with cargo aboard the fire-stricken Maersk Honam will have to stump up over half its value if it is to be released under general average arrangements.
MSC, Maersk Line’s 2M partner, confirmed this morning that the vessel is due to finally dock at Dubai on 22 May, with discharging likely to take between four days and a week.
This week, vessel salvor Richard Hogg Lindley (RHL) fixed the salvage security at 42.5% of the cargo value, as well as requiring a further 11.5% as a general average deposit.
This means a shipper with goods worth $100,000 in a container faces a combined general average and salvage security bond bill of $54,000 to have the cargo released.
MSC said this week: “The submission of the GA and salvage securities is a prerequisite for the cargo to be released from Jebel Ali.
“Following completion of the discharging operations, the containers identified as potentially damaged will undergo an inspection at Jebel Ali and relevant customers will be invited to be represented at a joint inspection.
“Containers that are identified as sound will be loaded at first opportunity to reach their final destination, provided GA and Salvage securities have been submitted and released confirmed by RHL.”
Alex Kemp, partner at global law firm HFW, explained: General average is a tool for sharing the losses arising from a marine casualty between all the parties involved in that casualty. The vessel owners, bunker owners, container shell owners and cargo owners will all contribute their share to the losses incurred.
“In order to ensure that everyone pays their fair share, the vessel owner usually has the power to detain the cargo pending the provision of security. If security is not provided, it is often open to the vessel owner to sell the cargo in order to raise the funds to pay the contribution due from that particular cargo owner,” he said.
However, in a further twist today, MSC that it would also look to pass on part of the extra transport and port costs incurred in Dubai to shippers with undamaged cargo.
“In consideration of the important geographical deviation provoked by the salvage operations and of the consecutive extra handling/storage costs that will accrue at port of refuge, MSC will unfortunately not be in position to carry your cargo to destination without collecting additional charges.
“We are therefore requesting an amount of $750 per 20ft or $1,250 per 40ft. This amount is destined to cover all additional transhipment, storage and on-carriage costs MSC will face as the result of this regrettable casualty.”
It added: “We are profoundly sorry for these additional costs which are imposed on us by the situation.”
For shippers that do not want to pay the extra charge, MSC said their containers would be “handed back to your local representatives under the double prerequisite that the original bills of lading have been returned to us duly endorsed and that your shipment has been released from general average/salvage, and will be subject to payment of storage and demurrage as per our tariff”.
Customers have until the close of business on 24 May to relay their decision to the carrier.
The Loadstar is fast becoming known at the highest levels of logistics and supply chain management as one of the best sources of influential analysis and commentary.

China – Dense Fog in Shanghai, Ningbo and Qingdao Causes Vessel Delays
Dear Valued Customer,
As per our advisory sent on 13 April 2018, you would be aware that terminals in Shanghai, Ningbo and Qingdao have been affected by heavy winds and intense fog, causing disruptions to port operations and vessel services.
Shanghai
Port operations at Wai Gao Qiao and Yangshan are being delayed by at least 3 days and 1.5 days respectively, with delayed opening hours for container yards. Some APL services have started calling the newly opened Yangshan Terminal 4, adding more options to our valued customers.
Ningbo
Current waiting time for vessel is estimated at 3 days. APL is working closely with the port authority to bring this down to 2 days.
Qingdao
Port operations are back to normal, but the current cargo backlog is expected to take 2 days to clear.
Please be assured that APL is working closely with the terminal operators and will keep you apprised of any update or development.
For assistance, please contact your local APL Customer Service Representative.
We thank you for your business and continued support

Sincerely,
APL
www.apl.com

POLA and POLB Marine Terminal Gates Closed Thursday, May 3, 2018, from 5 p.m.
Dear Users of OffPeak Gates,
PierPass Inc. has been notified that the International Longshore and Warehouse Union (ILWU) will observe a special stop work meeting for union business on Thursday, May 3, 2018, starting at 5 p.m. As a result, no marine terminal gates at the Port of Los Angeles or the Port of Long Beach will operate between the hours of 5:00 p.m. on May 3 through 3:00 a.m. on May 4. There will be no OffPeak shift Thursday night May 3.
Please check with individual terminals for substitute or alternative gates.
This labor shutdown falls under Rule 5 of the Marine Terminal Operator Schedule No. 1, which is available at:
http://www.pierpass.org/wp-content/uploads/2017/12/WCMTOA-Schedule-12-4-17.pdf
PierPass Inc.
PierPass Members Add Common Business Rules to Terminal Appointment Systems
LONG BEACH, Calif., April 30, 2018—The members of the West Coast MTO Agreement (WCMTOA)—the 12 marine terminal operators at the Ports of Los Angeles and Long Beach—have agreed to add common business rules for the appointment systems that will become part of the OffPeak program later this year. Subject to regulatory approval, the revised OffPeak program, which is administered by PierPass, is expected to begin in August.
The terminals agreed to add the common business rules—operational procedures that all terminals will follow—in response to requests from trucking companies and other stakeholders.
The new common business rules include an appointment window—the time span between the earliest and latest times a truck can arrive for an appointment, including grace periods—of two hours for all appointments. In addition, all terminals agreed that their last appointment times of the day will be 3:30 p.m. on the first shift and 1:30 a.m. on the second shift. The new business rules will take effect when the new program begins, and are expected to increase efficiencies for users when planning appointments at more than one terminal.
PierPass also clarified that the new system, which some have referred to as “PierPass 2.0,” won’t require appointments for individual import containers being picked up from peel-off piles. Trucking companies and cargo owners will continue to arrange for a single time window to pick up entire blocks of containers going to the same company or destination from a single container terminal.
Earlier this month, PierPass announced it will overhaul the system used by the OffPeak program for truck traffic mitigation at the two adjacent ports, replacing the current congestion pricing model with an appointment-based system that uses a single TEU-based flat fee on both daytime and nighttime container moves. The change has been welcomed by port leadership and by trucking industry associations as a way to improve flexibility and reduce the bunching up of trucks in late afternoons.
PierPass is scheduling a combined meeting of the PierPass Advisory Committee and Extended Gates Subcommittee in October. This will provide an opportunity for stakeholders to provide feedback and suggestions after implementation of the new system.
A Q&A about the revised OffPeak program is available at www.pierpass.org/wp-content/uploads/2018/04/QA-on-New-OffPeak-Program_4-16-18.pdf. The West Coast MTO Agreement is a discussion agreement filed with the FMC. For more information and to track continuing developments, please go to www.pierpass.org.
PierPass to Adopt Appointment System and Flat Fee for OffPeak Program
LONG BEACH, Calif., April 16, 2018—PierPass will overhaul the model used by its OffPeak program for truck traffic mitigation at the Ports of Los Angeles and Long Beach, replacing the current congestion pricing model with an appointment-based system that uses a single flat fee on both daytime and nighttime container moves.
The members of the West Coast MTO Agreement (WCMTOA)—the 12 marine terminal operators at the two adjacent ports—reached the decision after an 18-month process of consultation with industry stakeholders, and an analysis and survey by industry consultants.
Port users have expressed a desire for changes to increase flexibility and reduce the bunching up of trucks that often occurs before the start of the nighttime OffPeak shifts. Subject to regulatory approval, the revised OffPeak program is expected to begin in August.
“The industry has been demanding ‘PierPass 2.0,’ and we are responding,” said PierPass President John Cushing. “The original OffPeak program was an innovative and highly effective solution to the challenges we faced in 2005. But it was fairly inflexible, whereas an appointment-based model is scalable and can evolve to meet changing industry needs, technology and practices.”
Under the current program, OffPeak charges a Traffic Mitigation Fee (TMF) on weekday daytime cargo moves to incentivize cargo owners to use OffPeak shifts on nights and Saturdays. The revised OffPeak program will replace this two-tier fee structure with a single flat TMF during both shifts, and use appointments to spread traffic across the two shifts.
Applying the TMF to both day and night cargo will allow a reduction of more than 55 percent in the TMF while still providing funding to operate extended gates. The current TMF of $72.09 per TEU (twenty-foot equivalent unit) will be replaced by a new flat fee of $31.52 per TEU; the rate for all other container sizes will be a flat fee of $63.04.
“The Port of Long Beach is pleased with the progress PierPass has made in working with industry stakeholders to improve night gate operations in our terminals,” said Port of Long Beach Executive Director Mario Cordero. “As ships are getting bigger and volumes increase, efficient gate management is critical to our ability to move cargo in a reliable, predictable and expedient manner.”
“I’m pleased and encouraged that PierPass members are taking a significant step forward to improve efficiencies at the San Pedro Bay port complex,” said Port of Los Angeles Executive Director Gene Seroka. “We, as well as the trucking community and all of our stakeholders, look forward to increased cargo velocity and customer responsiveness at Port facilities.”
The process of reviewing OffPeak alternatives has included a series of meetings beginning with an October 2016 workshop where WCMTOA met with more than 70 leaders representing importers, exporters, trucking companies, logistics providers, elected officials, government representatives, port authorities and other supply chain stakeholders. After a series of subsequent stakeholder meetings to delve into potential alternative models, PierPass retained industry consultants to conduct a detailed analysis. The consultants’ findings were presented and discussed at a follow-up industry workshop on March 8, 2018. WCMTOA members then worked through the remaining issues to arrive at the final plan for the revised OffPeak program.
“The California Trucking Association appreciates the proposal put forth by PierPass regarding its re-structuring of the TMF,” said Alex Cherin, Executive Director of the CTA Intermodal Conference. “This is the culmination of many collaborative discussions between the marine terminal operators and trucking communities over the last few years, and we look forward to supporting these efforts.”
“The HTA has worked hard with our marine terminal colleagues to create a more efficient and environmentally sustainable port complex,” said Weston LaBar, CEO of the Harbor Trucking Association. “This new direction for PierPass is another example of cross-industry collaboration and is a giant step in the right direction. It shows that the San Pedro Bay Port Complex will continue to be the preferred gateway for moving America’s cargo.”
A Q&A about the revised OffPeak program is available at www.pierpass.org/wp-content/uploads/2018/04/QA-on-New-OffPeak-Program_4-16-18.pdf. The West Coast MTO Agreement is a discussion agreement filed with the FMC. For more information and to track continuing developments, please go to www.pierpass.org.