On Thursday, May 16, 2019, the President of the United States signed two proclamations that impact trade with Turkey.
The Proclamation to Modify the List of Beneficiary Developing Countries removes Turkey from the Generalized System of Preferences (GSP) effective May 17, 2019. This action is a follow-up to the initial announcement on March 4, 2019. By statute, a 60-day notice to Congress and Turkey was required before the removal from GSP could become effective. Turkey is being removed from the list of beneficiary countries because of its higher level of economic development, including per capita gross national product.
The Proclamation Adjusting Imports of Steel declared that steel imports from Turkey subject to Section 232 tariffs will be reduced to 25% effective May 21, 2019. On August 10, 2018, Section 232 steel tariffs were increased to 50% for steel products from Turkey. The Department of Commerce has reported that steel imports from Turkey have dropped 48% since the higher tariffs were implemented. This improvement is the basis for the decision to reduce the steel tariffs.
In CSMS Message #19-000257, U.S. Customs and Border Protection outlined the following instructions for handling these steel products from Turkey: “Goods entered for consumption, or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time on May 21, 2019, shall be filed using the 9903.80.01 special provision for 25% ad valorem duty rate for products of iron and steel from all countries (including Turkey) except Argentina, Australia, Brazil, Canada, Mexico, and South Korea.”
For more information, please contact your local MIQ Logistics, a company of Noatum Logistics representative.