CSMS 58942510·Trade policy·January 5, 2024·View on csms.cbp.gov ↗

GUIDANCE: New Threshold for Deactivating Section 232 Exclusions

Plain-English explanation

CSMS 58942510 is a U.S. Customs and Border Protection (CBP) Cargo Systems Messaging Service bulletin (trade policy), published on January 5, 2024. It carries the official CBP guidance brokers and importers must follow for the topic — "GUIDANCE: New Threshold for Deactivating Section 232 Exclusions". CSMS messages are the operational layer between Commerce determinations and at-the-border collections: when Commerce publishes a new rate, scope ruling, or instruction, CBP turns it into a CSMS that ACE/ACS systems and brokers act on.

Message body

Full text as published by U.S. Customs and Border Protection

CSMS # 58942510 - GUIDANCE: New Threshold for Deactivating Section 232 Exclusions U.S. Customs and Border Protection sent this bulletin at 01/05/2024 04:26 PM EST Cargo Systems Messaging Service CSMS # 58942510 - GUIDANCE: New Threshold for Deactivating Section 232 Exclusions The purpose of this message is to provide guidance on the new threshold for deactivating Section 232 exclusions. BACKGROUND : The Bureau of Industry and Security (BIS), within the Department of Commerce (DOC), grants exclusions to the Section 232 import duties and quotas on steel and aluminum imports. BIS allocates specific quantities of imports which can be imported under each exclusion. When imports under an exclusion reach the quantity limits of a Section 232 exclusion, that exclusion is no longer valid, and duties under the Section 232 measure apply. On July 20, 2023, the Government Accountability Office (GAO) issued a report on “Steel and Aluminum Tariffs: Agencies Should Ensure Section 232 Exclusion Requests Are Needed and Duties Are Paid”. The report indicated that importers have been improperly importing goods in excess of the granted Section 232 exclusion amounts, which has resulted in over $ 29 million of Section 232 duties owed by these importers. GUIDANCE : Effective February 15, 2024, for certain types of Section 232 exclusions, the Trade Remedy Branch in the Office of Trade will deactivate Section 232 exclusions in ACE on a weekly basis when the imported quantity for each exclusion is greater than or equal to 95 percent of the allocated quantity. This is a change from the current practice of deactivating Section 232 exclusions when the imported quantity of each exclusion reaches or exceeds 100 percent of the allocated quantity. The following Section 232 exclusions will be deactivated at the 95 percent threshold: Exclusions for non-quota countries i.e. those subject to Section 232 duties; Exclusions for European Union (EU) countries that are subject to Section 232 steel tariff rate quotas (TRQs); and Exclusions valid for multiple countries subject to both Section 232 duties and any quotas. When Section 232 exclusions are deactivated in ACE, importers are no longer be able to use the Section 232 exclusions on new entry summaries and will have to deposit the appropriate Section 232 duties on any new entry summaries. When certain exclusions are deactivated at less than 100 percent of the quantity, importers can choose to file a Post Summary Correction (PSC) to claim the remaining exclusion amounts and request a refund of any Section 232 duties paid. For exclusions that are valid for multiple countries subject to both Section 232 duties and quotas, and that are deactivated at less than 100 percent of the allocated quantity, importers can only file a PSC for the Section 232 duty countries, or the EU steel tariff rate quotas, to claim the remaining exclusion quantity amounts. All other Section 232 exclusions will remain at the 100 percent threshold for deactivation. These other exclusions cannot be deactivated at less than 100 percent because importers are not able to use a PSC in ACE to claim the remaining exclusion amounts. Questions regarding quota should be referred to the Quota and Agriculture Branch at HQQuota@cbp.dhs.gov . For questions regarding Section 232 trade remedies, please refer to CSMS message # 52417905 – Update: Information on Trade Remedy Questions and Resources https://content.govdelivery.com/accounts/USDHSCBP/bulletins/31fd571 Questions from the importing community concerning ACE rejections should be referred to their Client Representative. Related Messages: 55438432, 55483045, 55468907, 55407022, 55014059, 42355735, 18-000424, 18-000372, 18-000352, 18-000317 Update your subscriptions, modify your password or e-mail address, or stop subscriptions at any time on your Subscriber Preferences Page . You will need to use your e-mail address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com . This service is provided to you at no charge by U.S. Customs and Border Protection . Privacy Policy | GovDelivery is providing this information on behalf of U.S. Department of Homeland Security, and may not use the information for any other purposes. Powered by Privacy Policy | Cookie Statement | Help

Frequently asked questions

What is CSMS 58942510?

CSMS 58942510 is a U.S. Customs and Border Protection (CBP) Cargo Systems Messaging Service bulletin titled "GUIDANCE: New Threshold for Deactivating Section 232 Exclusions". CSMS bulletins are the operational instructions CBP issues to brokers, importers, and ACE filers covering rate changes, system updates, scope guidance, and other day-to-day customs-operations changes.

When was CSMS 58942510 published?

CBP published CSMS 58942510 on January 5, 2024. The bulletin's instructions are typically operative as of the publication date unless the body specifies a different effective date.

Is the CBP CSMS the legally binding instruction?

Yes — for at-the-border filing and entry collection. CSMS messages translate Commerce's Federal Register determinations into operational CBP instructions that ACE/ACS systems and brokers execute. The Federal Register notice is the underlying legal authority; the CSMS is the operational implementation. Both should be read together when reconciling a rate or scope change.

Learn more

Tandom guides relevant to CBP CSMS messages

Subscribe to and triage CBP CSMS messages

How to subscribe to CBP Cargo Systems Messaging Service and triage the messages that change broker filing behavior, without losing the ones that matter.

Open resource

Real-time alerts when a CSMS message changes a duty rate

Set up alerts when a CBP CSMS message changes a duty rate on an HTS code you depend on. Built for brokers, forwarders, and importer compliance teams.