ExecutiveOrdersEO
Proc 10406ProclamationBiden · D

Proclamation 10406

Adjusting Imports of Steel Into the United States

This proclamation establishes a tariff-rate quota allowing up to 500,000 metric tons of UK-origin steel to enter the United States duty-free, replacing the 25 percent Section 232 tariff for qualifying UK steel melted and poured in the UK (including steel further processed in the EU). The arrangement requires annual UK cooperation on monitoring, non-market excess capacity, carbon intensity, and third-party audits for Chinese-owned UK producers, while maintaining the 25 percent tariff on steel from other countries.

Federal Register Open PDF 87 FR 33591

Impact dates

  1. EU member country steel tariff exemption expires for certain headings

  2. Ukraine derivative steel exemption expires

  3. Tariff-rate quota effective for goods entered for consumption or withdrawn from warehouse

Key directives

  • Establish tariff-rate quota of 500,000 metric tons for UK-melted and poured steel
  • Amend HTSUS U.S. Note 16 and related headings
  • Require UK annual attestation for Chinese-owned producers via independent third-party audit
  • Secretary to recommend quota volume updates as warranted
  • Maintain 25% tariff on steel from non-exempt countries
  • Monitor implementation and effectiveness of arrangement

Who is ordered

Timeline

Immediate

  • Tariff-rate quota takes effect June 1, 2022 at 12:01 a.m. EDT
  • UK steel eligible for in-quota treatment
  • HTSUS amendments effective

Near term (90d)

  • Monitoring of quota implementation begins
  • Annual review process established

Long term

  • Ongoing annual US-UK arrangement reviews
  • Potential quota volume adjustments based on Secretary recommendations
  • Continued cooperation on carbon intensity and excess capacity through 2023 and beyond

Risks & tensions

  • Complex 'melted and poured in UK' rule of origin with EU processing creates enforcement challenges and transshipment risks
  • Chinese-owned UK producer attestation requirement introduces geopolitical friction with China
  • Annual review mechanism creates policy uncertainty for traders
  • EU-origin steel processed from UK inputs may create tensions with EU quota system
  • Secretary's discretionary authority to deny in-quota rates based on attestation failures could disrupt supply chains
Proclamation 10406: Adjusting Imports of Steel Into the United States · Executive Orders