New Exclusions Process Opens Up Potential Relief from Section 232 Steel and Aluminum Tariffs for Automotive Companies

On March 23, automotive companies that rely on imported steel and aluminum were confronted with new special tariffs of 25 percent on all imports of steel and tariffs of 10 percent on all imports of aluminum, with temporary exclusions for Argentina, Australia, Brazil, Canada, Mexico, the member countries of the European Union, and South Korea. Even automotive companies that solely or largely source from domestic steel companies have discovered that steel prices were sharply rising to reflect the new curbs on imports.

These measures created a great deal of uncertainty for consumers of these products in the automotive sector. To help address fears of shortages, the Department of Commerce has now announced an exemptions process. Pursuant to the new exclusions process, U.S. consumers of steel products can seek exclusions where: (1) steel and aluminum products are not available domestically; (2) domestic production is insufficient to satisfy domestic consumption; or (3) specific national security needs otherwise require an exemption.

In just the few days since the steel exclusions process was begun there reportedly have been over 100 exclusion requests filed. To help automotive companies navigate this new exclusions process, this Client Alert lays out the specific requirements of the exemptions process. It also provides details regarding alternative ways that companies can cope with these large new tariffs if they are not likely to be able to secure an exclusion of their imported products.

Developments are moving quickly in this area. As the details of how these tariffs will be implemented unfold, additional questions and uncertainties will arise. Attorneys in Foley & Lardner’s International Trade & National Security practice and its Automotive Industry Team are monitoring developments closely. Further information is available by contacting the authors.

The responses to the major questions surrounding the section 232 exclusions process are as follows:

How the Exclusions Process Functions

Was wurde angekündigt?

The Department of Commerce issued an exclusions process. It consists of two parts: (1) a Federal Register notice explaining the process; and (2) an exclusions submission form (tailored for steel and for aluminum).

Who may make a filing?

The exclusions process is limited to “parties in the United States,” i.e., “[o]nly individuals or organizations using [steel or aluminum] articles … in business activities … in the United States may submit exclusion requests.” The rationale is that consumers are the entities that “contribute to [the] economic welfare through business activities in the United States.” Foreign steel and aluminum makers, and other entities that do not consume these products may not file because “[a]llowing individuals or organizations not engaged in business activities in the United States to seek exclusion requests could undermine the adjustment of imports that the President determined was necessary to address the threat to national security posed by the current import” of steel and aluminum.

Automotive companies that purchase products for their U.S. operations most certainly qualify. Unlike with antidumping and countervailing duty orders, where the foreign supplier needs to take the lead, for section 232 it is the consumer that needs to be proactive in requesting an exclusion. Because of the way the exclusion is worded, the automotive-sector manufacturers – not the supplying steel companies – will need to take the lead in requesting exclusions.

Who is the decision maker?

Decisions regarding exclusions are to be made by the Bureau of Industry and Security (BIS), which is the entity that generally oversees the Export Administration Regulations (export controls on commercial/dual use products). It remains to be seen whether BIS will initially have the resources to turn around exclusion requests within the 90-day schedule announced by the agency.

What is the role of the domestic steel and aluminum industries?

The U.S. industries may object, and submit rebuttal information, within 30 days of the placement of the exclusion request on the U.S. exclusions website. Any individual or entity objecting needs to “provide factual information on the production capabilities at steel or aluminum manufacturing facilities that they operate in the United States; the availability and delivery time of the products that they manufacture relative to the specific steel or aluminum product that is subject to an exclusion request; and discussion on the suitability of its product for the application or applications identified by the exclusion requestor.”

It is unclear at this point whether the Department of Commerce will basically defer to U.S. industry objections (as occurs in the antidumping and countervailing duty context) or whether it will give a probing review to the claims of each side and whether the record, as a whole, supports an exclusion for the three enumerated bases.

What are the key considerations for granting or denying an exclusion request?

Exclusion requests are granted, “as appropriate,” for the “import of goods not currently available in the United States in a sufficient quantity or satisfactory quality, or for other specific national security reasons.” No other basis exists for granting an exclusion request. The first two categories are intended to encompass situations where the U.S. industry cannot benefit from an exclusion. The last one is intended to deal with situations where the consumer manufactures goods that have a national security impact (e.g., defense articles or critical infrastructure).

What about the country exclusions?

The pace of change for country exclusions has been dizzying:

• Originally, the section 232 announcement contained no exclusions, adopting the Department of Commerce option of a global tariff on all products.
• A few days later, there was an announcement of potential exclusions for Canada and Mexico, followed by Australia.
• On March 22, the White House announced exclusions for Argentina, Australia, Brazil, Canada, Mexico, the member countries of the European Union, and South Korea. These exclusions last only until May 1, 2018. The White House announcement stated that the U.S. government would be carefully monitoring imports of steel and aluminum from the exempted countries to determine if quotas might be needed (i.e., if the listed countries take advantage of the temporary exclusions to increase exports to the United States).
• The U.S. and Korean governments announced a deal for the exclusion of 2.68 million tons of Korean steel per year (about 70 percent of the average for the period 2015 to 2017) from the steel tariffs in exchange for changes to the U.S.-Korea Free Trade Agreement (KORUS) related to auto safety standards and pickup trucks. Basically, South Korea decided that it would rather have fewer sales (at the new, higher prices prevailing in the U.S. market) than pay a 25 percent tariff (which would also likely be at lower volumes). This quota deal may become a template for other countries to follow.

Illustrating the new international trade environment brought about by the section 232 process, even the Korean announcement brought more trade risks and uncertainty. There are still many questions about how this quota will work, including who will get the steel, whether it will be administered by the Korean government, how quotas will be administered, which steel companies in Korea will get the quotas, how those Korean steelmakers will decide which customers to serve and which to cut off, and so forth.

How to Make an Exclusion Filing

Can confidential information be submitted to support or rebut an exclusion request?

Generally, no. Exclusion requests will be released to the public and confidential information “should not be provided.” If submitters have “proprietary or otherwise business confidential information that they believe relevant to the Secretary’s consideration” then the company should so indicate, but not provide the information in the exclusion request.

What is the key information that automotive companies should supply?

The information to be submitted primarily is found in a form located here. These forms and supplements are “primarily focused on the availability of the product in the United States,” with information about availability of the product abroad only being tangentially important to the extent it illuminates U.S. national security considerations. The submission must “clearly identify, and provide support for,” the argument that the “article is not produced in the United States in a sufficient and reasonably available amount, is not produced in the United States in a satisfactory quality, or for a specific national security consideration.” No more than 25 pages of support can be provided, both for the initial request and for any rebuttal.

BIS has not announced the standard it will use to review submissions. It is highly likely, however, that exclusions will only be granted based upon strong evidence supporting the claim that the product is not available domestically/available in sufficient quantities or that there is a specific national security rationale for a claimed exemption. Companies that are providing exclusion requests need to consider carefully what type of support they can submit to distinguish their submissions from the flood of other submissions. Strong support for any claimed need for an exemption will likely be the key to securing a favorable exclusion decision.

How are exclusion requests filed?

Exclusion requests must be in electronic form and are to be submitted at www.regulations.gov.

What is the timing for any objection?

The U.S. steel and aluminum industry must submit objections “no later than 30 days after the related exclusion request is posted.” Objections should provide support for the opposition, while referring to the specific support provided in support of the original exclusion request.

How long does it take to evaluate exclusions?

The exclusions process will “normally” not exceed 90 days. It remains to be seen how many exclusion requests BIS will receive and whether it will have the resources to meet this stated goal of a 90-day turnaround.
What Will Exclusions Look Like?

On what basis will exclusions be granted?

Exclusions will be made on a product basis, based on the physical characteristics of the excluded products.

Who can use any granted exclusions?

Exclusions will generally be issued only to the “individual or organization that submitted the specific exclusion request, unless Commerce approves a broader application of the product” to apply to additional importers. Exclusions generally will not be issued in blanket form. In other words, if Consumer A receives an exemption for a given product, Consumer B will not be able to rely on that exclusion, even if it is importing the same type of steel.

There are procedures for minimizing the work created by numerous customers requesting the same exclusion. Follow-on requesters can reference exclusion requests already approved, as “[o]ther individuals or organizations that wish to submit an exclusion request for a steel or aluminum product that has already been the subject of an approved exclusion request may submit an exclusion under this supplement.”

How long will exclusions last?

In most cases, BIS will issue exclusions limited to one year.

When do exclusions become effective?

Exclusions are effective five days after they are published on regulations.gov.

If an exclusion is turned down, can it be resubmitted?

BIS will consider a new exclusion if it provides “new or different information in an attempt to meet the criteria for approving an exclusion request for that product.” Unless the submitter submits significantly new information, it is unlikely BIS will reconsider its earlier denial.

The Repercussions of the Section 232 Announcement

Wie lange werden die Zölle gemäß Abschnitt 232 gelten?

There is no time limit under the law. The president has discretion and can decide how long the tariffs will last. President Trump himself has vowed that relief will be put in place “for a long period of time.” Whether this will be carried out depends on the results of the inevitable court and WTO challenges. The closest analogue to this situation – the safeguard steel remedies that were put in place in 2002 by the Bush administration – lasted only around 18 months, as they were struck down by a WTO panel. The Bush administration thereafter revoked the duties, due as much to the desire to end retaliation by foreign governments (which imposed large tariffs on unrelated U.S. products) as it was a desire to end the WTO challenge.

Welche Auswirkungen wird dies auf bereits geltende Antidumping- und Ausgleichszölle haben? Wird es Auswirkungen auf neue Anträge haben?

The United States currently has 169 antidumping and countervailing duty orders in place for steel (29 of which are against China, which is estimated to have the majority of the world’s excess steel production capacity).
It is unclear how the U.S. steel industry will respond. Reportedly, the industry has prepared antidumping and countervailing duty petitions on additional steel products, but was holding back on filing them pending the release of the section 232 results. There is still an incentive for the U.S. industry to file these actions, especially if they have taken the costly step of preparing petitions. As noted above, the lifespan of any section 232 relief is unknown. The earlier safeguard action on steel lasted only 18 months. Antidumping and countervailing duty actions, by contrast, are countenanced by the WTO and generally last for 15 years or longer. (While they can be sunsetted every five years, this hardly ever happens until the third review or later.) Thus, there is every incentive to still file antidumping and countervailing duty cases, which offer prospects for longstanding relief.

Der Erfolg solcher Anträge könnte jedoch schwieriger zu erreichen sein. Das Vorhandensein der Ausnahmeregelung gemäß Abschnitt 232 erschwert es, diese Fälle zu gewinnen. Um eine Antidumping- oder Ausgleichszollverordnung zu erwirken, muss die US-Industrie nachweisen, dass sie „erheblichen Schaden“ „aufgrund“ der betreffenden Einfuhren erleidet oder dass die betreffenden Einfuhren der US-Industrie „erheblichen Schaden“ „drohen“. Diese Feststellung wird von der International Trade Commission (ITC) getroffen. Das Vorhandensein einheitlicher Zölle von 25 Prozent auf Importe wird es schwieriger machen, vor der ITC Argumente für einen erheblichen Schaden vorzubringen.

Wird es einen internationalen Handelskrieg geben?

The war has already begun. Antidumping and countervailing duty actions were up nearly 50 percent in the first year of the new administration. The president has chosen international trade hardliners to form the core of his international trade team. NAFTA is being renegotiated, with the U.S. government pushing for strong regional content rules and other initiatives that would tilt the balance of trade against imports from Mexico. KORUS (the free trade agreement with Korea) is soon to follow. And in the area of foreign investment in the United States, the Trump administration already has used the Committee on Foreign Investment in the United States (CFIUS) process to reject several high-profile investments in the United States, turning the CFIUS process into a de facto form of industrial policy for investments in U.S. firms by foreign companies where there is a potential U.S. national security interest.

Die Besorgnis über einen möglichen Handelskrieg wurde durch die Ereignisse am Wochenende nur noch verstärkt. Die EU listete mögliche Ziele für Vergeltungsmaßnahmen auf, ebenso wie andere Länder. Präsident Trump bekräftigte seine Erklärung, dass ein Handelskrieg „leicht zu gewinnen“ sei, und erklärte, dass er Autos aus der EU ins Visier nehmen werde, sollte es nach der Ankündigung gemäß Section 232 zu Vergeltungsmaßnahmen gegen US-Waren kommen.

Kurz gesagt, die Zölle gemäß Abschnitt 232 sind am besten als neueste Front im internationalen Handelskrieg zu betrachten. Der Unterschied zu früheren Auseinandersetzungen besteht darin, dass diesmal die anderen Länder Stellung beziehen und zurückschlagen werden.

How can companies cope with the new international trade environment?

The section 232 announcement is but one part of an ongoing push by the administration to block what it believes is unfair trade. With the number of antidumping and countervailing duty actions rising by nearly 50 percent in the first year of the Trump administration, companies that rely on imported goods need to be aware of the potential disruption of their international supply chains. At the same time, companies that believe they are the victims of unfair trade have more tools available than ever before to combat perceived unfair trade.

What will be the supply chain issues flowing from the steel and aluminum section 232 tariffs?

Any industry that uses steel and aluminum in its manufacturing supply chain will be impacted by these tariffs. As with any raw materials cost increase, these tariffs will create many issues across manufacturing supply chains. Further, although the section 232 tariffs are aimed at imported steel, in the wake of the announcement prices of all forms of steel – including domestically produced steel sold in the sport market – rose sharply. Thus, automotive companies that consume aluminum and steel – even if entirely procured from domestic sources – likely will see an impact from these new tariffs. Issues that may arise include:

1. The exercise of price adjustment clauses in supply contracts for raw material increases; 
2. Einseitige Forderungen nach Preiserhöhungen oder Preisaufschlägen;
3. Verlangt, dass Verbraucher die Verantwortung für Pflichten übernehmen, unter anderem durch die Verlagerung der Verantwortung dafür, welches Unternehmen als Importeur fungiert.
4. Produktknappheit und Zuteilungsprobleme;
5. Behauptungen der wirtschaftlichen Undurchführbarkeit gemäß U.C.C. § 2-615;
6. Berufung auf höhere Gewalt und die Ausübung von Bestimmungen über höhere Gewalt in Verträgen (insbesondere wenn die Klausel über höhere Gewalt weit gefasste Formulierungen wie „oder andere Ereignisse oder Umstände, die die Fähigkeit des Unternehmens zur Lieferung von Produkten beeinträchtigen können“ enthält);
7. Verweigerung des Versands von Produkten, die Zölle auslösen könnten; und
8. Gerichtliche Anfechtungen und internationale Schiedsverfahren im Falle internationaler Lieferverträge.

Companies should update their procurement and sales teams regarding these developments and their potential impact across the manufacturing supply chain. Companies may want to proactively conduct a review and risk assessment of key supply chain contracts requiring steel and aluminum inputs.

Was können Unternehmen tun, die glauben, dass sie potenzielle Ziele für internationale Handelsschutzverfahren sind?

Automobiles and automotive parts have been the subject of antidumping and countervailing duty actions. These actions have been brought on entire vehicles, such as minivans from Japan, and on individual parts, such as tires. The decision as to whether to bring a case is within the discretion of the U.S. industry producing a given product. Even where a case is self-initiated by the U.S. government, it generally proceeds with the support of the U.S. industry.

Es ist nicht ungewöhnlich, dass Importeure eines Produkts, die keinen Notfallplan vorbereitet haben, sich in einer Sackgasse befinden, wenn ein Verfahren eingeleitet wird, insbesondere wenn sie vertraglich verpflichtet sind, das ausländische Produkt trotz der Aussicht auf deutlich höhere Zölle weiterhin zu kaufen. Hier sind einige Vorsichtsmaßnahmen, die Unternehmen ergreifen können, die befürchten, in eine mögliche Handelsmaßnahme verwickelt zu werden:

• Monitor Import Statistics and Trade Rumors. Sometimes, trade filings come out of nowhere, through the filing of a petition that was impossible to predict. In many cases, however, there are signs a case is coming – industry rumors, articles in industry publications, or trade patterns compatible with a finding of material injury “by reason of” imports of a given product. Cases are especially likely to be filed when imports from key foreign countries are increasing, when average unit values for such products are declining, and when the U.S. industry is suffering from declining profitability or increasing losses. Especially for industries where trade remedy filings are common, it can be useful to pay attention to trends that potentially indicate the filing of an action. Data regarding import trends, including the average unit value of imports and the quantity of imports, broken down by country and Harmonized Tariff System classification, is available on the ITC DataWeb website.
• Bewertung als Importeur der Aufzeichnungen. Obwohl Handelsschutzmaßnahmen gegen ausländische Hersteller und Exporteure gerichtet sind, werden die erhobenen Zölle tatsächlich vom Importeur als Prozentsatz des Wertes jeder Einfuhr der betreffenden Ware erhoben. Importeure, die die Veröffentlichung neuer Verordnungen nicht beachten, können feststellen, dass sie versehentlich Waren importiert haben, für die nun zusätzliche Zölle anfallen – in einigen Fällen zu Sätzen, die den Wert der Ware selbst übersteigen (d. h. wenn die Zollsätze 100 Prozent übersteigen). Unternehmen müssen sich der vertraglichen Vereinbarungen bewusst sein, in denen sie sich bereit erklärt haben, als Importeur von Rekord zu fungieren, insbesondere für Waren wie Eisen- und Stahlprodukte, für die Handelsanmeldungen üblich sind.
• Festlegung von Notfallmaßnahmen in langfristigen Lieferverträgen. Unternehmen, die in hohem Maße von importierten Waren abhängig sind, müssen prüfen, ob ihre langfristigen Verträge Notfallmaßnahmen für folgende Fälle vorsehen: welche Partei als Importeur fungiert, die Lieferbedingungen (Lieferbedingungen wie CIF und FOB können sich darauf auswirken, wer für die Zahlung von Zöllen verantwortlich ist), ob eine Erstattung von Zöllen erfolgt, ob die Möglichkeit einer Erhöhung der Zölle überhaupt berücksichtigt wird und ob die Parteien das Recht haben, den Vertrag aufgrund der Einführung unerwarteter Zölle zu kündigen. Klauseln über höhere Gewalt erfüllen möglicherweise nicht die gesetzlichen Anforderungen für eine Vertragsauflösung aufgrund unerwarteter Zölle.
• Eingaben sorgfältig mit Bestellungen abgleichen. Wie bereits erwähnt, gibt es jedes Mal, wenn eine neue Handelsschutzmaßnahme verhängt wird, Importeure, die von den unerwarteten Zöllen überrascht werden. Sich in dieser Situation auf Zollagenten oder Spediteure zu verlassen, kann oft unzureichend sein, da diese Dritten in der Regel nicht dafür verantwortlich sind, zu wissen, welche Produkte für den Import vorgesehen sind. Sobald die Waren das Zollgebiet der Vereinigten Staaten erreicht haben, ist es zu spät, etwas zu unternehmen, da für Antidumping- und Ausgleichszölle keine Zollrückerstattung möglich ist. Es kommt auch nicht selten vor, dass Zollagenten die Einführung neuer Antidumping- oder Ausgleichszölle übersehen, obwohl diese Aufgabe zu ihren vertraglichen Pflichten gehört. Da die Haftung von Zollagenten in der Regel vertraglich auf den bescheidenen Wert der für die Abfertigung der Waren gezahlten Gebühr beschränkt ist, sollten Unternehmen im Rahmen ihrer Zollkonformität Maßnahmen ergreifen, um unabhängig zu verfolgen, welche Waren neuen Verordnungen unterliegen.
• Know the Correct Classification of Entries. Duties are imposed based upon the physical description of the merchandise, not the HTS classification, which is given for convenience only. If Customs determines goods should have been declared to be subject to an antidumping duty order, it will impose the duties even if the HTS classification declared or believed to be true indicated otherwise. In any situation where entries are in a gray area, special attention should be paid to get the classification correct and determine whether the good falls within the scope of the order. Some orders have complicated scopes that can make classification, such as the aluminum extrusions order (which is the subject of approximately 80 scope determinations by the DOC). If certainty is not possible through self-classification, importers should consider filing a request for a scope ruling, which results in the DOC issuing a definitive ruling as to whether the goods are within the scope of an order.
• Be Aware of Potential Circumvention Red Flags. Because duty rates can be high, some less scrupulous exporters will misclassify their goods, such as by claiming different product attributes or classifications than in fact exist, by claiming an erroneous country of origin, or otherwise. Duties are paid, however, by the importer of record, not the manufacturer. Any importer noticing red flags that indicate potential circumvention should check into it before CBP does.
• Einrichtung eines Überwachungssystems und aktive Teilnahme an Verwaltungsüberprüfungen. Ausländische Unternehmen, die die betreffende Ware exportieren, müssen besonders vorsichtig sein. Gemäß den Vorschriften des DOC werden in der Regel die beiden größten ausländischen Exporteure als „obligatorische Befragte“ für administrative Überprüfungen ausgewählt. Administrative Überprüfungen werden jährlich durchgeführt und umfassen die Vorlage neuer Daten durch den ausländischen Hersteller, um die Antidumping- oder Ausgleichszöllen neu festzusetzen. Erfahrene ausländische Unternehmen, die im Rahmen einer Bestellung tätig sind, können detaillierte Überwachungssysteme aufbauen, die es ihnen ermöglichen, in den Vereinigten Staaten zu Preisen zu verkaufen, die nahe an den Nicht-Dumping-Preisen liegen, wodurch sie die gegen ihre Einfuhren festgesetzte operative Antidumping-Spanne beibehalten oder sogar senken können.
• Conduct a Risk Assessment Review of Critical Supply Contracts that May be Impacted. Work with the company’s sales and procurement teams to identify key long-term contracts and purchase orders that will be impacted by the tariffs. Specific contract terms that should be examined include provisions that pertain to: (a) raw materials increases and any applicable pricing formulas; (b) other requests for cost increases; (c) force majeure; (d) notice requirements; and (e) termination rights.
• Investigate Alternative Sources of Supply. If a critical supplier threatens to cease supply absent price increases or seeks to terminate the contract, the company will need to act quickly to ensure a continuity of supply. If there are alternate sources available, the company may work to line up and qualify a replacement supplier. However, this may not be feasible if the goods are specially manufactured products that require testing and a lengthy validation process. The company should ascertain how much product it has in stock and identify when an interruption in supply would cause a shutdown in the manufacturing line. The company can then determine whether its best course of action is to acquiesce to the demand for price increases or refuse and proceed with qualifying an alternate supplier. Even if the company does decide to pay higher costs for the product (whether by paying the existing supplier a premium or by finding an alternate supplier), the company should do so with a full reservation of rights, solely as an act of cover, to mitigate its damages, and prevent any interruptions in the supply chain. The company should take all steps necessary to document its position regarding any request for price increases and reserve all of its rights under the parties’ contract.

What can companies that believe they are victims of unfair trade do?

The aggressive tariffs for steel and aluminum are understandably drawing a lot of notice as a new tool to fight perceived unfairly traded imports. In January 2018, Energy Fuel Resources (USA) Inc. and Ur-Energy USA Inc. filed a petition requesting a national security finding and measures to halt imports from Russia, Kazakhstan, China, and Uzbekistan. Reportedly, the Department of Commerce is reviewing other industries where section 232 potentially could be applied, with a focus on semiconductors/integrated circuits, aircraft, and shipbuilding. Other industries with an arguable national security argument are likely to give section 232 new consideration, as well as considering tried-and-true international trade remedies like antidumping and countervailing duty petitions.

For companies without a national security hook, there still are potential international trade remedies available. The options for companies that believe they are being hurt by unfair trade varies depending on whether the good already is covered by an order or whether the producer is contemplating bringing a new action. For products covered under existing orders, constant vigilance regarding whether foreign competitors are taking steps to circumvent orders is necessary. Some common ways in which circumvention occurs is by mismarking the country of origin, transshipping goods through third countries, conducting minor processing of goods in a third country and claiming the good was substantially transformed and became a product of the third country, and shipping components into the United States for only minor assembly in so-called “screwdriver” factories. In some cases, companies have added trace amounts of nonessential components to try to take a product just slightly outside of the scope of the relevant order.

Die Überwachung dieser Art von Aktivitäten ist wichtig für Unternehmen, die von erhöhten Zöllen, die zur Eindämmung der ausländischen Konkurrenz eingeführt wurden, in vollem Umfang profitieren möchten. Informationen zu Importen können gegen eine Gebühr von kommerziellen Dienstleistern wie PIERS bezogen werden. Wenn der Verdacht besteht, dass Zölle nicht ordnungsgemäß entrichtet werden, kann dies dem DOC durch einen Antrag auf eine Umgehungsuntersuchung gemeldet werden.

An additional option recently opened up is a new law that gives U.S. producers a strong tool to prevent circumvention of orders through the grant to CBP of heightened authority to investigate allegations that foreign exporters are evading antidumping and countervailing orders. Under the new law, U.S. producers, wholesalers, and unions (among others) of the same or similar products covered by antidumping and countervailing duty orders can file an allegation that an importer has entered the merchandise subject to the order through evasion. CBP even provides a website to report such concerns. The law allows the DOC and the ITC to submit evidence of evasion as well. CBP is then required to investigate the allegation to determine its accuracy.

Ein letztes Instrument, das in Betracht gezogen werden sollte, ist der False Claims Act, der es Privatpersonen ermöglicht, im Namen der US-Regierung Klage zu erheben, wenn sie der Ansicht sind, dass der US-Regierung aufgrund der Umgehung von Anordnungen Einnahmen entgehen. Wird eine solche Umgehung festgestellt, kann dies zu Strafen in Höhe des zwei- bis vierfachen Betrags der Zölle, Steuern und Gebühren führen, die den Vereinigten Staaten entgangen sind, oder in Höhe des inländischen Werts der importierten Waren. Außerdem können dreifache Schadensersatzzahlungen und Strafen in Höhe von 10.781 USD bis maximal 21.563 USD pro Verstoß verhängt werden. Da die Zölle potenziell dreistellige Beträge erreichen können, kann sich der potenzielle Zollbetrag schnell erhöhen. Darüber hinaus können Whistleblower-Bestimmungen die Rückforderung von bis zu 30 Prozent aller von der Regierung zurückgeforderten Beträge ermöglichen, je nachdem, ob die Regierung in den Fall eingreift. Ist dies der Fall, ist der Aufwand für den Whistleblower gering, da der Fall von der Regierung bis zum Ende verfolgt wird und der Whistleblower am Ende der Untersuchung möglicherweise eine hohe Belohnung erhält.

Where products are not covered by an existing order, for all the reasons listed above, the environment probably has never been more receptive for companies seeking import relief. This topic is covered below.

Wie können US-Unternehmen feststellen, ob sie einen guten Fall haben, den sie vor Gericht bringen sollten?

Despite the surprising new use of section 232, the most common forms of trade remedy by far are antidumping and countervailing duty actions. These cases generally are initiated after a detailed petition is filed by manufacturers, producers, or wholesalers in the United States of the same or similar products; by a certified union or recognized union or group of workers in the United States of the same or similar products; by a trade or business association whose members manufacture, produce, or wholesale the same or similar products in the United States; or by an association of these groups.
Preparing a petition is a lot of work. The petition must contain detailed submissions relating to the existence and amount of dumping and/or subsidization, the identities of known manufacturers and importers, and copious information regarding how subject imports allegedly have harmed U.S. producers of the domestic like product. One advantage of the process, however, is that a draft petition can be submitted in advance of filing to both the DOC and the ITC, which will follow up with detailed comments and requests for information to fill in any perceived gaps in the petition. This is a huge advantage, akin to a company being able to provide an advance copy of its brief to a judge for comments regarding the strengths of the arguments.

The determination as to whether a case should be brought is a complicated one, and depends on close evaluation of the level of imports, their pricing, trends in import quantities and their pricing, and other factors bearing on whether there is a case for material injury or the threat thereof. Detailed information also needs to be provided regarding the potential antidumping duty margin, which is evaluated at the DOC.
Further information, including a questionnaire designed to help evaluate the strength of a potential antidumping case, is available by contacting Greg Husisian at [email protected] or +1 202.945.6149 or Bob Huey at [email protected] or +1 202.295.4043.

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The authors of this Client Alert are all members of the Foley & Lardner LLP Automotive Industry Team. Because of the broad array of issues raised by the section 232 tariffs, your particular questions may vary. Further help is available as follows:

• Greg Husisian and Bob Huey are members of the Foley International Trade & National Security Practice. These authors have an international trade remedy assessment tool kit available. This tool kit is designed to help U.S. companies assess whether they have a viable case to consider bringing. Further information about this Client Alert or other international trade topics is available by contacting Greg Husisian at [email protected] or +1 202.945.6149 or Bob Huey at [email protected] or +1 202. 295.4043.
• Mark Aiello is a co-chair of the Foley Automotive Industry team and concentrates on business transactions and commercial litigation, including automotive supply chain agreements and litigation, product development, and protection. Mark Aiello is available at [email protected] or +1 313.234.7126.
• John Trentacosta and Vanessa Miller are members of Foley’s Manufacturing Supply Chain Team and are available to assist should there be commercial fallout from these tariffs. For further questions regarding supply chain issues, please contact John Trentacosta at [email protected] or +1 313.234.7124 or Vanessa Miller at [email protected] or +1 313.234.7130

Full details on the implications of the section 232 tariffs on the steel and aluminum are available on the markets in general, and for the automotive sector in particular.