Failure to Monitor Section 232 Exclusions Could Cost Importers Millions, Law Firm Says
Failure to maintain a "robust system" of submitting and monitoring their own Section 232 exclusions could cost importers millions of dollars in "duty savings opportunities," said a blog post from law firm Crowell & Moring Aug. 15. A new report from the Government Accountability Office that found more than $32 million in unpaid Section 232 duties on steel and aluminum because the Department of Commerce's Bureau of Industry and Security and CBP hadn't detected that the exclusion had been filed (see 2307210064).
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GAO found that more than 90% of the unpaid duties were due to CBP not realizing the exclusion volumes had been exceeded at the time of entry and not noticing until after the 90-day reliquidation period.
Crowell & Moring lawyer John Brew and analyst Sam Boone said importers should confirm their Section 232 exclusion requests are "in accordance" with BIS guidelines. It also recommends that importers track the usage of their exclusions to make sure they aren't "exceeding the quotas" and file renewal exclusions "in a timely manner," the article said.
As both BIS and CBP work on addressing the recommendations in the GAO report, "it is clear that maintaining the Section 232 exclusion process has proved to be a tremendous burden for BIS and CBP," the article said.