Exporting steel to the US means entering a market characterized by a complex tariff system, stringent trade policies, and highly specialized logistics. The US protects its steel industry through multi-layered trade barriers, and successful exporters must master the rules and optimize their strategies to survive in the competition.
Part One: Core Steel Trade Barrier System
- Section 232 National Security Tariff
Core Content: Under Section 232 of the Trade Expansion Act of 1962, the US imposes a 25% global tariff on most imported steel products on the grounds of “national security.”
Scope of Application: Covers almost all categories (HS codes 7206-7309), but tariff quotas or exemptions exist for some countries; real-time updates from the US Department of Commerce announcements are required.
Key Impact: This is the benchmark barrier for US steel trade, directly determining the export cost structure.
- Anti-dumping and Countervailing Duties
Dual Mechanism: The U.S. imposes punitive tariffs on both “unfair pricing” (dumping) and “government subsidies,” typically superimposed on the Section 232 tariff.
High Tariff Rates: For certain steel products from countries like China, AD/CVD tariffs often exceed 100%, sometimes even surpassing 300%.
Circumvention Challenges: U.S. Customs rigorously investigates “circumvention activities,” including transshipment through third countries and minor processing, posing extremely high risks.
- Rules of Origin and “Substantial Transformation”
Determination Criteria: U.S. Customs determines country of origin based on the “substantial transformation” principle. Simple processing (such as cutting or painting) is insufficient to change the country of origin.
Compliance Requirements: Complete production records must be maintained to prove that the product meets specific standards such as “change in tariff classification,” “value-added ratio,” or “specific processing steps.”
Part Two: Legal and Compliant Tariff Optimization Strategies
- Product Exclusion Application Mechanism
Applicable Scenarios: When there is insufficient domestic supply of a specific type, specification, or quality of steel in the United States, importers can submit a product exclusion application to the U.S. Department of Commerce.
Key to Success:
Provide detailed technical parameters to demonstrate the product’s irreplaceability.
Obtain written support from downstream U.S. users.
Closely monitor the publication and validity period of each exclusion list.
- Utilization of Free Trade Agreements
Key Agreements:
USMCA: Steel products that comply with the rules of origin are eligible for duty-free treatment (a certificate of origin is required).
Other FTAs: Although the U.S. has limited FTA partners for steel, it is necessary to verify whether there are preferential arrangements with specific countries.
Strategic Value: Further processing in Mexico or Canada in accordance with USMCA rules may become an important strategic option.
- Application of the First Sale Rule
Operating Principle: In multi-level transactions (such as factory-trading company-U.S. buyer), if conditions are met, the initial selling price from the factory to the trading company can be declared instead of the final export price, reducing the taxable value.
Implementation Conditions:
The transaction must be a genuine “bona fide sale.”
Ownership and risk of the goods must transfer.
The price must comply with the principle of fair trade.
A complete chain of contracts, payment vouchers, and other supporting documents are required.
- Tariff Classification Optimization
Professional Strategy: Under the premise of complying with customs classification rules, seek HS codes with lower tax rates through accurate product descriptions and classification justifications.
Risk Warning: Classification must be based on the objective attributes of the product; any deliberate misclassification will result in hefty fines.
Part Three: Efficient Logistics and Supply Chain Strategy
- In-depth Application of ISM Rules
Core Requirements: All vessels bound for the US must hold an approved ISM compliance certificate (DOC/SMC). Shippers should pay attention to:
Shipping company’s safety management system certification status
The validity of the vessel’s safety management certificate
Extreme accuracy of dangerous goods declarations
Practical Impact: Choosing a shipping company with a good ISM compliance record can significantly reduce the risk of supply chain disruptions due to vessel non-compliance.
- Compliance with the “10+2” Declaration Rules
Importer Security Declaration: US importers must submit 10 data items 24 hours before shipment.
Carrier Manifest Declaration: Shipping companies must submit 2 data items 24 hours before loading at foreign ports.
Exporter Obligations: Exporters must provide complete cargo information (including accurate 6-digit HS code, shipper information, etc.) to US importers and shipping companies in advance and accurately. Any delays or errors will result in rejection of shipment.
- Strategic Layout of Supply Chain Nodes
Strategy 1: Bonded Warehousing
Establish inventory in bonded warehouses in third countries (such as South Korea and Vietnam) or within the US to flexibly respond to changes in orders and tariffs.
Strategy 2: Nearshore Distribution Center
Establish a processing and distribution center in Mexico, leveraging the advantages of USMCA to serve the North American market.
Strategy 3: Omnichannel Logistics Integration
Partner with professional third parties familiar with US steel logistics to integrate port loading and unloading, inland transportation (rail/truck), warehousing and distribution, optimizing costs and timeliness.
Part Four: Risk Mitigation and Compliance Management
- Building a Complete Compliance Documentation Package
- Commercial Invoice (specifying applicable trade terms and price composition)
- Certificate of Origin (when applicable to FTA)
- Material Certificates/Test Reports (compliant with ASTM and other standards)
- Complete Transaction Chain Documentation (when applicable to the First Sale Rule)
- Material Safety Data Sheet (MSDS)
- Proactively Participating in Customs Pre-Ruling Procedures
- For key issues such as commodity classification and origin, apply for legally binding pre-rulings from U.S. Customs in advance to ensure customs clearance certainty.
- Establishing a Continuous Regulatory Monitoring System
- Track announcements from the U.S. Department of Commerce, the International Trade Commission, and Customs.
- Monitor the progress of relevant trade remedy cases.
- Join industry associations to obtain early warning information.
Conclusion: Exporting steel to the U.S. is a complex game played within a regulatory framework. The key to success lies in:
A deep understanding of the interplay between the triple tariff barriers
Professional use of legitimate tariff optimization tools
Strategic planning for a resilient supply chain that complies with security rules such as the ISM
Systematic construction of a proactive compliance management system
Only by elevating trade compliance to a strategic level and finding pathways through stringent trade barriers through meticulous operations can we maintain and enhance our competitiveness in the US market while ensuring long-term compliance.