Aluminum Import Monitoring and Analysis System, 23748-23753 [2020-07791]
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23748
Proposed Rules
Federal Register
Vol. 85, No. 83
Wednesday, April 29, 2020
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF COMMERCE
International Trade Administration
19 CFR Part 361
[Docket ITA–2020–200408–0103]
RIN 0625–AB18
Aluminum Import Monitoring and
Analysis System
Enforcement and Compliance,
International Trade Administration,
Commerce.
ACTION: Proposed rule and request for
public comment.
AGENCY:
The Department of Commerce
(Commerce) is issuing, and requesting
public comments on, a proposed rule to
establish an Aluminum Import
Monitoring And Analysis (AIM) system.
Over the past decade, Commerce has
operated the Steel Import Monitoring
and Analysis (SIMA) system to monitor
for import surges of specific steel
products and to monitor for potential
transshipment and circumvention of
U.S. trade measures relating to these
products. AIM, as proposed, will be
similar to the existing SIMA system.
Specifically, Commerce proposes to
require import license applicants to
identify the country where the
aluminum used in the manufacture of
the imported aluminum product was
smelted and poured; to release this data
on an aggregate basis, as appropriate;
and to apply the licensing requirement
to cover all imports of basic aluminum
products, which are listed in Annex II.
DATES: To be assured of consideration,
written comments must be received on
or before 5 p.m. EST on May 29, 2020.
ADDRESSES: Submit comments through
the Federal eRulemaking Portal at
https://www.Regulations.gov, Docket
ITA–2020–200408–0103. Comments
may also be submitted by mail or hand
delivery/courier, addressed to Jeffrey I.
Kessler, Assistant Secretary for
Enforcement and Compliance, Room
1870, Department of Commerce, 1401
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SUMMARY:
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Constitution Ave. NW Washington, DC
20230.
Commerce will consider all comments
received before the close of the
comment period. All comments
responding to this notice will be a
matter of public record and will
generally be available on the Federal
eRulemaking Portal at https://
www.Regulations.gov. Commerce will
not accept comments accompanied by a
request that part or all the material be
treated confidentially because of its
business proprietary nature or for any
other reason. Therefore, do not submit
confidential business information or
otherwise sensitive or protected
information.
Any procedural questions should be
addressed to E&C Communications
Office at (202) 482–0063 or ECcomms@
trade.gov.
FOR FURTHER INFORMATION CONTACT:
Julie
Al-Saadawi at (202) 482–1930 or
Brandon Custard at (202) 482–1823.
SUPPLEMENTARY INFORMATION:
Background
The SIMA System
AIM will operate in a similar manner
as the SIMA system, which has operated
under its current authority since March
11, 2005.
The purpose of the SIMA system is to
provide steel producers, steel
consumers, importers, and the general
public with accurate and timely
information on anticipated imports of
certain steel products into the United
States. Steel import licenses, issued
through the online SIMA licensing
system, are required by U.S. Customs
and Border Protection (CBP) for filing
entry summary documentation, or its
electronic equivalent, for imports of
certain steel mill products into the
United States. Through the monitoring
tool, certain import data collected from
the licenses are aggregated weekly and
reported on the publicly available SIMA
system website, https://
enforcement.trade.gov/steel/license/.
This tool provides valuable data
regarding certain steel mill imports into
the United States as early as possible
and makes such data available to the
public approximately five weeks in
advance of official U.S. import statistics
compiled by the U.S. Census Bureau
(Census).
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Section 232 Tariff on Imports of
Aluminum Into the United States
On January 19, 2018, pursuant to
section 232 of the Trade Expansion Act
of 1962 (the Trade Expansion Act), as
amended (19 U.S.C. 1862), the Secretary
of Commerce (Secretary) transmitted to
the President a report on his
investigation into the effect of imports
of aluminum articles on the national
security of the United States.1 The
Secretary found and advised the
President that aluminum articles were
being imported into the United States in
such quantities and under such
circumstances as to threaten to impair
the national security of the United
States.2 In Presidential Proclamation
9704 of March 8, 2018 (Adjusting
Imports of Aluminum Into the United
States) (Proclamation 9704), the
President concurred with the Secretary’s
findings and decided to adjust the
imports of aluminum articles, as defined
in clause 1 of Proclamation 9704, by
imposing a 10 percent ad valorem tariff
on such articles imported from most
countries.3
Subsequently, in Presidential
Proclamation 9893 of May 19, 2019
(Adjusting Imports of Aluminum Into
the United States) (Proclamation 9893),
the President stated that the United
States successfully concluded
discussions with Canada and Mexico on
satisfactory alternative means to address
the threatened impairment of the
national security posed by aluminum
imports from Canada and Mexico.4 The
United States agreed on a range of
measures with Canada and Mexico to
prevent the importation of aluminum
that is unfairly subsidized or sold at
dumped prices, to prevent the
transshipment of aluminum, and to
1 See The Effect of Imports of Aluminum on the
National Security: An Investigation Conducted
Under Section 232 of the Trade Expansion Act of
1962, As Amended, U.S. Department of Commerce
Report, dated January 11, 2018 (https://
www.commerce.gov/files/effect-imports-aluminumnational-security-investigation-conducted-undersection-232-trade); see also Adjusting Imports of
Aluminum Into the United States, Proclamation No.
9704, 83 FR 11619 (March 15, 2018) (Presidential
Proclamation No. 9704).
2 Presidential Proclamation No. 9704, 83 FR at
11619.
3 See Adjusting Imports of Aluminum Into the
United States, Proclamation No. 9704, 84 FR 11619,
11621 (March 8, 2018) (Presidential Proclamation
No. 9704).
4 Presidential Proclamation No. 9893, 84 FR at
23983.
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monitor for and avoid import surges.5
These measures are expected to allow
imports of aluminum from Canada and
Mexico to remain stable, at historical
levels without meaningful increases,
thus permitting the domestic capacity
utilization to remain reasonably
commensurate with the target level
recommended in the Secretary’s report.6
Additionally, the President noted these
measures will provide effective, longterm alternative means to address the
contribution of these countries’ imports
to the threatened impairment of the
national security.7
Furthermore, in Proclamation 9893,
the President determined that, under the
framework in the agreements, imports of
aluminum from Canada and Mexico
would no longer threaten to impair the
national security, and thus the President
decided to exclude Canada and Mexico
from the tariff proclaimed in
Proclamation 9704, as amended.8
Finally, the President noted that the
United States will monitor the
implementation and effectiveness of
these measures in addressing our
national security needs, and that the
President may revisit this
determination, as appropriate.9
Explanation of Proposed Rule
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Pursuant to his authority under
section 301 of the Census Act, as
amended (13 U.S.C. 301), the Secretary
of Commerce proposes to establish a
system of import licensing to facilitate
the monitoring of imports of aluminum
articles, including monitoring for import
surges. The Secretary of Commerce has
delegated the responsibility for issuing
these regulations to the Assistant
Secretary for Enforcement and
Compliance. The International Trade
Administration is thus proposing a rule,
and requesting comments, to establish a
web-based aluminum licensing and
import monitoring system. AIM will
operate in a similar way as the existing
SIMA system and will be codified under
19 CFR 361. Minor changes have been
proposed to regulations for the SIMA
system which we propose to incorporate
in AIM, if the modifications to the SIMA
system are promulgated in a final rule.10
The license application of AIM will
be comprised of three parts:
(1) An online registration system for
aluminum importers;
5 Id.
6 Id.
7 Id.
8 Id.
9 Id.
10 See Modification of Regulations Regarding the
Steel Import Monitoring and Analysis System, 85
FR 17515 (March 30, 2020).
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(2) An automatic aluminum license
issuance system; and
(3) An import monitoring website.
Importers of basic aluminum products
(listed in Annex II), which include all
aluminum products currently subject to
Section 232 tariff, will be required to
obtain an aluminum import license for
each shipment and must provide the
license number to CBP as part of the
submission of the entry summary, or its
electronic equivalent. The only
exceptions are the low-valued imports
(i.e., aluminum imports valued under
$5,000 per shipment described below)
or informal entries as described below.
AIM will be based on automatically
granted import licenses that will be
required to import covered aluminum
products (including all aluminum
products currently subject to Section
232 duties). Because Commerce grants
import licenses prior to the submission
of an importation’s customs entry
summary data (up to 2 months before
release of Census data), this approach
ensures that the aluminum import
monitor will function as an early
warning system—yielding public data
about 5–6 weeks prior to import
statistics released by Census. Finally,
the proposed aluminum import
monitoring system would enable
Commerce to gather and publish data on
where aluminum was ‘‘smelted and
poured,’’ in keeping with changes that
have been proposed to regulations for
the SIMA system. See 19 CFR part 360
to understand how the current SIMA
system is currently operated. Because
the SIMA system has worked well,
Commerce proposes to have AIM be
similar for imports on certain aluminum
products. Parties are encouraged to
comment on any part of the proposed
regulations. Commerce proposes to
codify the Aluminum Regulations in 19
CFR part 361.
Aluminum Import Licensing System
Similar to the steel licensing system,
the aluminum import licensing system
will include both an online registration
system for importers and an automatic
aluminum import license issuance
system. In order to obtain an aluminum
import license, an importer or the
importer’s agent or customs broker,
must first register with Commerce and
be assigned a username. This username
will be required to log on to the
aluminum import license issuance
system. Although a primary username
will be issued to an importing company
or brokerage house, all operating units
within the company (e.g., individual
branches, divisions or employees) may
have separate usernames associated
with different email addresses that will
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be associated with the parent company.
The aluminum import license issuance
system will be designed to allow
multiple users of a single identification
number from different locations within
the company to enter information
simultaneously.
Any company or broker with a United
States address may register and obtain a
username. There is no fee to register and
a username will be issued immediately
if all registration fields are filled out. As
part of the registration process, the
importer, agent or customs broker will
be required to provide certain general
information. Such information will
include the applicant company name,
Employer Identification Number (EIN)
or the CBP-issued importer number
(where no EIN is available), address,
phone number, contact information and
email address for both the company
headquarters and any branch offices that
will be applying for aluminum licenses.
This information will be used solely for
the purposes of administering the
aluminum import licensing and
monitoring programs. The information
will not be released by Commerce,
except as required by U.S. law.
Commerce will begin registering and
issuing user login names at least two
weeks prior to the implementation date
of the aluminum licensing program. The
username will be needed to apply for
the license.
Aluminum import licenses will be
issued to registered importers, customs
brokers or their agents through an
automatic aluminum import licensing
system. The separately issued username
discussed above will be required for
company registration in the system.
There will be no fee charged to apply for
the import licenses.
Similar to steel imports, aluminum
import licenses will be issued
automatically after the completion of
the application form. In order to obtain
the license, the applicant must report
the following information about the
aluminum import transaction:
i. Filer company name and address;
ii. Filer contact name, phone number,
fax number and email address;
iii. Entry type (i.e., Consumption,
Foreign Trade Zone);
iv. Importer name;
v. Exporter name;
vi. Manufacturer name (filer may state
‘‘unknown’’);
vii. Country of origin;
viii. Country of exportation;
ix. Expected date of export;
x. Expected date of import;
xi. Expected port of entry;
xii. Current HTS number (from
Chapters 76);
xiii. Country where aluminum was
smelted and poured;
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xiv. Quantity (in kilograms) and
xv. Customs value (U.S. $).
Fields #1 and #2 above (e.g., applicant
company name and address and the
applicant’s contact information) will be
generated automatically in the license
form from the company registration
information. Other information will be
available from drop down lists in the
application form (e.g., Aluminum HTS
numbers, country of origin/smelt, port
of entry) and will not have to be typed.
A sample copy of the proposed
aluminum import license will be
available for viewing on Enforcement
and Compliance’s website (https://
trade.gov/aluminum/).
Upon completion of the application
form, the importer, customs broker or
the importer’s agent will certify the form
as to the accuracy and completeness of
the information and submit the form
electronically. After refreshing the page,
the system will automatically issue an
aluminum import license number. The
refreshed form containing the submitted
information and the newly issued
license number will appear on the
screen (the ‘‘license form’’). Applicants
can print the license form themselves. If
needed, copies of completed license
forms can be retrieved by the user or
requested from Commerce during
normal business hours.
The aluminum import license will be
required on every entry of covered
aluminum product (except informal
entries covered below). Like SIMA, a
single license can cover multiple
products as long as the information at
the top of the form (i.e., importer,
exporter, manufacturer, and country of
origin and exportation, and the expected
dates of exportation and expected date
of importation) are the same for the
shipment. However, separate licenses
will be required if any of the
information above differs with respect
to a given set of covered imported
aluminum products. As a result, a single
CBP entry may require more than one
aluminum import license. The
applicable license number(s) must cover
the total quantity of aluminum entered
and should match the information
provided on the CBP entry summary.
There is no requirement to present
physical copies of the license forms at
the time of entry summary; however,
copies must be maintained in
accordance with CBP’s normal
requirements. Licenses will be issued
for single use and will be specific to a
shipment.
Certain aggregate information
collected from the license application
system will be posted on the aluminum
import surge monitoring website.
Subject to comments received, only the
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aggregate information described below
will be available to the public. All other
information including copies of the
licenses and the names of importers,
exporters, and manufacturers, will be
considered business proprietary
information and will not be released to
the public.
Aluminum Import Monitoring System
Commerce will create a standalone
aluminum import monitoring website.
This website will report certain
aggregate information on aluminum
imports categories obtained from the
aluminum licenses. Aggregate
information will be reported on a
monthly basis by country of origin,
country of smelt and pour, and
aluminum product category and will
include import quantity (metric tons),
import Customs value (U.S. dollars) and
average unit value (dollars per metric
ton). However, Commerce will not
report information if it would reveal
business proprietary information.
Reported monthly import data will be
refreshed each week with new data on
licenses issued in the prior week. This
data collected may be adjusted
periodically for corrected, canceled or
unused aluminum import licenses, if
deemed appropriate for accurate
monitoring purposes. Information
provided in the public import monitor
will mirror that available for steel.
The monitoring system will also
present a range of historical data for
comparison purposes. This will include
comparisons to the previous month and
to the same month in the previous year;
three month rolling averages along with
similar comparisons to the immediately
preceding period, the same period from
the preceding year; and monthly import
data on each aluminum product
category. The public import monitoring
system for aluminum articles will be
similar to the monitoring system for
SIMA. Commerce welcomes comments
regarding the format of the monitoring
system for AIM, and will incorporate
any changes that are feasible.
Duration of the Aluminum Import
License
The aluminum import license can be
applied for up to 60 days prior to the
expected date of importation and until
the date of filing of the entry summary
documents, or its electronic equivalent.
The aluminum import license is valid
for up to 75 days; however, import
licenses that were valid on the date of
importation but expired prior to the
filing of entry summary data will be
accepted. Special timing issues
surrounding withdrawal of products
from a warehouse, foreign trade zone
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issues, and temporary imports will be
handled separately, as explained below.
Handling of Aluminum to Foreign Trade
Zones (FTZs)
Commerce proposes to require a
license for aluminum shipped into a
U.S. FTZ. Because a CBP entry number
would not be available for shipments
entering the FTZ, the license required
for entry into the zone will not require
the CBP entry number. As with steel, a
separate license will not be required
upon withdrawal from the FTZ.
Informal Entries and Low-Value
Aluminum Entries
No import license shall be required on
informal entries of aluminum products,
such as merchandise valued at less than
$2,500. For additional information
about informal entries, refer to 19 CFR
360.101(d) of the proposed regulatory
text. For shipments containing less than
$5,000 worth of aluminum, applicants
can apply for a reusable Low-Value
License; refer to 19 CFR 360.103(f) of
the proposed regulatory text.
Interim Monitoring
The aluminum import monitor will
provide information on U.S. imports of
aluminum from all countries by broad
product types in both value and volume
measures. Once the license collection
begins, additional data will be added to
the aluminum monitor. The aluminum
import monitor will be similar to the
monitor available for steel imports.
However, it will not encompass the
preliminary Census data, which is
incorporated into the steel monitor.
Over the last 10 years, there have been
advancements to Census’s regular data
release schedule for its public monthly
trade statistics. Commerce believes that
the early release preliminary data from
Census is not critical to the early
warning monitor because the aluminum
import license data will be available.
However, the Department intends to
keep using preliminary Census data for
purposes of steel monitoring.
Classifications
Executive Order 12866
The Office of Management and Budget
(OMB) has determined that this
proposed rule is significant for purposes
of Executive Order 12866.
Executive Order 13771
This proposed rule is not expected to
be subject to the requirements of
Executive Order 13771 because this
proposed rule is expected to result in no
more than de minimis costs.
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Paperwork Reduction Act
This proposed rule contains the
collection of information subject to the
Paperwork Reduction Act, 44 U.S.C.
Chapter 35 (PRA). Similar requirements
have been approved for steel by OMB
(OMB No.: 0625–0245; Expiration Date:
01/31/2021). Based on Commerce’s
experience with similar burdens for
steel and sample data for aluminum
entries, Commerce estimates that public
reporting for this collection of
information will be less than 10 minutes
per response, including the time for
reviewing instructions, and completing
and reviewing the collection of
information. Commerce also estimates
that the average registered user will
complete 173 licenses per year.
Paperwork Reduction Act Data:
OMB Number: 0625–.
ITA Number:
Type of Review: Regular Submission.
Affected Public: Business or other forprofit.
Estimated Number of Registered
Users: 1,750.
Estimated Time per Response: less
than 10 minutes.
Estimated Total Annual Burden
Hours: 46,428 hours.
Estimated Total Annual Costs: $0.00.
Notwithstanding any other provision of
law, no person is required to respond to
nor shall a person be subject to a
penalty for failure to comply with a
collection of information subject to the
requirements of the Paperwork
Reduction Act unless that collection of
information displays a current valid
OMB Control Number.
Request for Comments: Comments are
invited on (a) Whether the proposed
collection of information is necessary
for the proper performance of the
functions of the agency, including
whether the information shall have
practical utility; (b) the accuracy of the
agency’s estimate of the burden
(including hours and costs) of the
proposed collection information; (c)
ways to enhance the quality, utility, and
clarity of the information to be
collected; and (d) ways to minimize the
burden of the collection of information
on respondents, including through the
use of automated collection techniques
or forms of information technology.
All comments on the information
collection will be summarized and/or
included in the request for OMB
approval of this information collection;
they also will become a matter of public
record. Send comments regarding the
burden estimate or any other aspect of
this collection of information, including
suggestions for reducing this burden, as
directed under ADDRESSES and DATES as
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well as to OIRA at OIRA_Submission@
omb.eop.gov, or fax to 202–395–7285.
Executive Order 13132
This proposed rule does not contain
policies with federalism implications as
that term is defined in section 1(a) of
Executive Order 13132, dated August 4,
1999 (64 FR 43255 (August 10, 1999)).
Regulatory Flexibility Act
The Chief Counsel for Regulation has
certified to the Chief Counsel for
Advocacy of the Small Business
Administration under the provisions of
the Regulatory Flexibility Act, 5 U.S.C.
605(b), that the proposed rule if
adopted, would not have a significant
economic impact on a substantial
number of small entities as that term is
defined in the Regulatory Flexibility
Act, 5 U.S.C. 601 et seq. (RFA). A
summary of the factual basis for this
certification is below.
This proposed rule will not have a
significant economic impact on a
substantial number of companies. This
rule, if implemented, would: (1) Require
import license applicants to specify
certain information including the
country where aluminum used in the
manufacture of the imported aluminum
product was smelted and poured; and
(2) cover the following HTS codes: 7601,
7604, 7605, 7606, 7607, 7608, 7609,
7616.99.51.60, and 7616.99.51.70. The
entities that would be impacted by this
rule are importers and brokerage
companies that import aluminum
products. Based on statistics derived
from current license applications for
steel, of the approximately 557,143
licenses issued each year, Commerce
estimates that less than two percent of
the license applications would be filed
by importers and brokerage companies
considered to be small entities. AIM
would cover about half of the number of
SIMA’s licenses based on statistics for
one month’s entry information.
Based on the current usage of the
SIMA system, Commerce does not
anticipate that this proposed rule will
have a significant economic impact.
AIM would be similar to the SIMA
system. In most cases, brokerage
companies will apply for the license on
behalf of the aluminum importers. Many
of the same brokerage firms that handle
steel imports will likely handle
aluminum imports. Most brokerage
companies that are currently involved
in filing documentation for importing
goods into the United States are
accustomed to CBP’s automated entry
filing systems. Today, CBP’s filings are
handled electronically. Therefore, the
proposed license application should not
be a significant obstacle to any firm.
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Should an importer or brokerage
company need to register for an account
or apply for a license non-electronically,
a fax/phone option is available at
Commerce during regular business
hours. There will be no cost to register
for a company-specific aluminum
license account and no cost to file for
the license. Each license form is
expected to take less than 10 minutes to
complete and collects much of the same
information required for CBP entry
summary. The import license is the only
additional U.S. entry requirement that
the importers or their representatives
must fulfill in order to import each
covered product shipment.
Commerce does not charge fees for
licenses. Similar to the estimates used
for the steel license program, Commerce
estimates that the likely aggregate
license costs incurred by small entities
in terms of the time to apply for licenses
as a result of this proposed rule would
be less than two percent, or an
estimated $18,571, of the estimated total
$928,560 cost to all aluminum importers
to process the on-line automatic
licenses. These calculations are based
on an hourly pay rate of $20.00
multiplied by the estimated 46,428 total
annual burden hours. The vast majority
of licenses are for large companies. The
average cost of a single license is less
than $4.17 based on the estimate that
one license requires less than 10
minutes of the filer’s time.
This proposed rule contains
collection-of-information requirements
subject to review and approval by OMB
under the PRA.
Public reporting for this collection of
information is estimated to be less than
10 minutes per response, including the
time for reviewing instructions, and
completing and reviewing the collection
of information.
Therefore, the proposed rule would
not have a significant economic impact
on a substantial number of small
business entities. For this reason, an
Initial Regulatory Flexibility Analysis is
not required and one has not been
prepared.
List of Subjects in 19 CFR Part 361
Administrative Practice and
Procedure, Business and Industry,
Imports, Reporting and Recordkeeping
Requirements, Aluminum.
Dated: April 8, 2020.
Jeffrey I. Kessler
Assistant Secretary for Enforcement and
Compliance.
For the reasons stated in the preamble,
the Department of Commerce proposes
to add 19 CFR part 361 as follows:
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19 CFR PART 361—ALUMINUM
IMPORT MONITORING AND ANALYSIS
SYSTEM
Sec.
361.101 Aluminum import licensing.
361.102 Online registration.
361.103 Automatic issuance of import
licenses.
361.104 Aluminum import monitoring.
361.105 Duration of the aluminum import
licensing requirement.
361.106 Fees.
361.107 Hours of operation.
361.108 Loss of electronic licensing
privileges.
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§ 361.101
Aluminum import licensing.
(a) In general. (1) All imports of basic
aluminum products are subject to the
import licensing requirements. These
products are listed in Annex II.
Registered users will be able to obtain
aluminum import licenses on the
Aluminum Import Monitoring and
Analysis (AIM) website. This website
contains two sections related to import
licensing—the online registration
system and the automatic aluminum
import license issuance system.
Information gathered from these
licenses will be aggregated and posted
on the import monitoring section of the
AIM system website.
(2) A single license may cover
multiple products as long as certain
information on the license (e.g.,
importer, exporter, manufacturer and
country of origin) remains the same.
However, separate licenses for
aluminum entered under a single entry
will be required if the information
differs. As a result, a single Customs
entry may require more than one
aluminum import license. The
applicable license(s) must cover the
total quantity of aluminum entered and
should cover the same information
provided on the Customs entry
summary.
(b) Entries for consumption. All
entries for consumption of covered
aluminum products, other than the
exception for ‘‘informal entries’’ listed
in paragraph (d) of this section and the
exception for shipments from Foreign
Trade Zones into the commerce of the
United States listed in paragraph (c) of
this section, will require an import
license prior to the filing of Customs
entry summary documents, or its
electronic equivalent. The license
number(s) must be reported on the entry
summary (Customs Form 7501), or its
electronic equivalent, at the time of
filing. There is no requirement to
present physical copies of the license
forms at the time of entry summary.
However, copies must be maintained in
accordance with Customs’ normal
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Jkt 250001
requirements. Entry summaries
submitted without the required license
number(s) will be considered
incomplete and will be subject to
liquidated damages for violation of the
bond condition requiring timely
completion of entry.
(c) Foreign Trade Zone entries. All
shipments of covered aluminum
products into a foreign trade zones
(FTZ), known as FTZ admissions, will
require an import license prior to the
filing of FTZ admission documents, or
its electronic equivalents. The license
number(s) must be reported on the
application for FTZ admission and/or
status designation (Customs Form 214)
at the time of filing. There is no
requirement to present physical copies
of the license forms at the time of FTZ
admission; however, copies must be
maintained in accordance with
Customs’ normal requirements. FTZ
admission documents submitted
without the required license number(s)
will not be considered complete and
will be subject to liquidated damages for
violation of the bond condition
requiring timely completion of
admission. A further aluminum license
will not be required for shipments from
zones into the commerce of the United
States.
(d) Informal entries. No import license
shall be required on informal entries of
covered aluminum products, such as
merchandise valued at less than $2,500.
This exemption applies to informal
entries only; imports of aluminum
valued at less than $2,500 that are part
of a formal entry will require a license.
For additional information, refer to 19
CFR 143.21 through 143.28.
(e) Other non-consumption entries.
Import licenses are not required on
temporary importation bond (TIB)
entries, transportation and exportation
(T&E) entries or entries into a bonded
warehouse. Covered aluminum products
withdrawn for consumption from a
bonded warehouse will require a license
at the entry summary, consistent with
the requirements for ‘‘Entries for
Consumption’’ identified in paragraph
(b) of this section, above.
§ 361.102
Online registration.
(a) In general. (1) Any importer,
importing company, customs broker or
importer’s agent with a U.S. street
address may register and obtain the user
identification number necessary to log
on to the automatic aluminum import
license issuance system. Foreign
companies may obtain a user
identification number if they have a
U.S. address through which they may be
reached; P.O. boxes will not be
accepted. A user identification number
PO 00000
Frm 00005
Fmt 4702
Sfmt 4702
will be issued within two business days.
Companies will be able to register
online through the AIM website.
However, should a company prefer to
apply for a user identification number
non-electronically, a phone/fax option
will be available at Commerce during
regular business hours.
(2) This user identification number
will be required in order to log on to the
aluminum import license issuance
system. A single user identification
number will be issued to an importer,
customs broker or importer’s agent.
Operating units within the company
(e.g., individual branches, divisions or
employees) will all use the same basic
company user identification code but
can supply suffixes to identify the
branches. The aluminum import license
issuance system will be designed to
allow multiple users of a single
identification number from different
locations within the company to enter
information simultaneously.
(b) Information required to obtain a
user identification number. In order to
obtain a user identification number, the
importer, importing company, customs
broker or importer’s agent will be
required to provide general information.
This information will include: The filer
company name, employer identification
number (EIN) or Customs ID number
(the Customs-issued importer number
(where no EIN is available), U.S. street
address, phone number, contact
information and email address for both
the company headquarters and any
branch offices that will be applying for
aluminum licenses. It is the
responsibility of the applicant to keep
the information up-to-date. This
information will not be released by
Commerce, except as required by U.S.
law.
§ 361.103
licenses.
Automatic issuance of import
(a) In general. Aluminum import
licenses will be issued to registered
importers, customs brokers or their
agents through an automatic aluminum
import licensing system. The licenses
will be issued automatically after the
completion of the form.
(b) Customs entry number. Filers are
not required to report a Customs entry
number to obtain an import license but
are encouraged to do so if the Customs
entry number is known at the time of
filing for the license.
(c) Information required to obtain an
import license. (1) The following
information is required to be reported in
order to obtain an import license (if
using the automatic licensing system,
some of this information will be
provided automatically from
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Federal Register / Vol. 85, No. 83 / Wednesday, April 29, 2020 / Proposed Rules
jbell on DSKJLSW7X2PROD with PROPOSALS
information submitted as part of the
registration process):
(i) Filer company name and address;
(ii) Filer contact name, phone
number, fax number and email address;
(iii) Entry type (i.e., Consumption,
FTZ);
(iv) Importer name;
(v) Exporter name;
(vi) Manufacturer name (filer may
state ‘‘unknown’’);
(vii) Country of origin;
(viii) Country of exportation;
(ix) Expected date of export;
(x) Expected date of import;
(xi) Expected port of entry;
(xii) Current HTS number (from
Chapter 76);
(xiii) Country where aluminum was
smelted and poured;
(xiv) Quantity (in kilograms) and
(xv) Customs value (U.S. $).
(2) Certain fields will be automatically
filled out by the automatic license
system based on information submitted
by the filer (e.g., product category, unit
value). Filers should review these fields
to help confirm the accuracy of the
submitted data.
(3) Upon completion of the form, the
importer, customs broker or the
importer’s agent will certify as to the
accuracy and completeness of the
information and submit the form
electronically. After refreshing the page,
the system will automatically issue an
aluminum import license number. The
refreshed form containing the submitted
information and the newly issued
license number will appear on the
screen (the ‘‘license form’’). Filers can
print the license form themselves only
at that time. For security purposes, users
will not be able to retrieve licenses
themselves from the license system at a
later date for reprinting. If needed,
copies of completed license forms can
be requested from Commerce during
normal business hours.
(d) Duration of the aluminum import
license. The aluminum import license
can be applied for up to 60 days prior
to the expected date of importation and
until the date of filing of the entry
summary documents, or in the case of
FTZ admissions, the filing of Customs
form 214, or their electronic
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Jkt 250001
equivalents. The aluminum import
license is valid for 75 days; however,
import licenses that were valid on the
date of importation but expired prior to
the filing of entry summary data will be
accepted.
(e) Correcting submitted license
information. Users will need to correct
licenses themselves if they determine
that there was an error submitted. To
access a previously issued license, a
user must log on with his user
identification code and identify the
license number and the quantity (in
kilograms) for the first product shown
on the license. The information on the
license should match the information
presented in the entry summary data as
closely as possible. This includes the
value and quantity of the shipment, the
expected date of importation, and the
customs port of entry.
(f) Low-value licenses. There is one
exception to the requirement for
obtaining a unique license for each
Customs entry. If the total value of the
covered aluminum portion of an entry is
less than $5000, applicants may apply
to Commerce for a low-value license
that can be used in lieu of a single-entry
license for low-value entries.
§ 361.104
Aluminum import monitoring.
(a) Throughout the duration of the
licensing requirement, Commerce will
maintain an import monitoring system
on the AIM website that will report
certain aggregate information on imports
of aluminum products obtained from
the aluminum licenses, as described in
paragraphs (b) and (c) of this section,
provided that it does not reveal business
proprietary information.
(b) Aggregate data will be reported on
a monthly basis by country of origin,
country of smelt and pour, and
aluminum product category and will
include import quantity (metric tons),
import customs value (U.S. $), and
average unit value ($/metric ton). The
website will also contain certain
aggregate data at the 6-digit Harmonized
Tariff Schedule level and will also
present a range of historical data for
comparison purposes.
(c) Reported monthly import data will
be refreshed each week with new data
PO 00000
Frm 00006
Fmt 4702
Sfmt 9990
23753
on licenses issued during the previous
week. This data will also be adjusted
periodically for cancelled or unused
aluminum import licenses, as
appropriate.
§ 361.105 Duration of the aluminum import
licensing requirement.
The licensing program will be in
effect indefinitely. The licenses will be
valid for 10 business days after the
expiration of this program to allow for
the final filing of required Customs
documentation.
§ 361.106
Fees.
No fees will be charged for obtaining
a user identification number, issuing an
aluminum import license or accessing
the aluminum import monitoring
system.
§ 361.107
Hours of operation.
The automatic licensing system will
generally be accessible 24 hours a day,
7 days a week but may be unavailable
at selected times for server maintenance.
If the system is unavailable for an
extended period of time, parties will be
able to obtain licenses from Commerce
directly via fax during regular business
hours. Should the system be
inaccessible for an extended period of
time, Commerce would advise Customs
to consider this as part of mitigation on
any liquidated damage claims that may
be issued.
§ 361.108 Loss of electronic licensing
privileges.
Should Commerce determine that a
filer consistently files inaccurate
licensing information or otherwise
abuses the licensing system, Commerce
may revoke its electronic licensing
privileges without prior notice. The filer
will then only be able to obtain a license
directly from Commerce. Because of the
additional time needed to review such
forms, Commerce may require up to 10
working days to process such forms.
Delays in filing caused by the removal
of a filer’s electronic filing privilege will
not be considered a mitigating factor by
the U.S. Customs Service.
[FR Doc. 2020–07791 Filed 4–28–20; 8:45 am]
BILLING CODE 3510–DS–P
E:\FR\FM\29APP1.SGM
29APP1
Agencies
[Federal Register Volume 85, Number 83 (Wednesday, April 29, 2020)]
[Proposed Rules]
[Pages 23748-23753]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07791]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 85, No. 83 / Wednesday, April 29, 2020 /
Proposed Rules
[[Page 23748]]
DEPARTMENT OF COMMERCE
International Trade Administration
19 CFR Part 361
[Docket ITA-2020-200408-0103]
RIN 0625-AB18
Aluminum Import Monitoring and Analysis System
AGENCY: Enforcement and Compliance, International Trade Administration,
Commerce.
ACTION: Proposed rule and request for public comment.
-----------------------------------------------------------------------
SUMMARY: The Department of Commerce (Commerce) is issuing, and
requesting public comments on, a proposed rule to establish an Aluminum
Import Monitoring And Analysis (AIM) system. Over the past decade,
Commerce has operated the Steel Import Monitoring and Analysis (SIMA)
system to monitor for import surges of specific steel products and to
monitor for potential transshipment and circumvention of U.S. trade
measures relating to these products. AIM, as proposed, will be similar
to the existing SIMA system. Specifically, Commerce proposes to require
import license applicants to identify the country where the aluminum
used in the manufacture of the imported aluminum product was smelted
and poured; to release this data on an aggregate basis, as appropriate;
and to apply the licensing requirement to cover all imports of basic
aluminum products, which are listed in Annex II.
DATES: To be assured of consideration, written comments must be
received on or before 5 p.m. EST on May 29, 2020.
ADDRESSES: Submit comments through the Federal eRulemaking Portal at
https://www.Regulations.gov, Docket ITA-2020-200408-0103. Comments may
also be submitted by mail or hand delivery/courier, addressed to
Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance,
Room 1870, Department of Commerce, 1401 Constitution Ave. NW
Washington, DC 20230.
Commerce will consider all comments received before the close of
the comment period. All comments responding to this notice will be a
matter of public record and will generally be available on the Federal
eRulemaking Portal at https://www.Regulations.gov. Commerce will not
accept comments accompanied by a request that part or all the material
be treated confidentially because of its business proprietary nature or
for any other reason. Therefore, do not submit confidential business
information or otherwise sensitive or protected information.
Any procedural questions should be addressed to E&C Communications
Office at (202) 482-0063 or [email protected].
FOR FURTHER INFORMATION CONTACT: Julie Al-Saadawi at (202) 482-1930 or
Brandon Custard at (202) 482-1823.
SUPPLEMENTARY INFORMATION:
Background
The SIMA System
AIM will operate in a similar manner as the SIMA system, which has
operated under its current authority since March 11, 2005.
The purpose of the SIMA system is to provide steel producers, steel
consumers, importers, and the general public with accurate and timely
information on anticipated imports of certain steel products into the
United States. Steel import licenses, issued through the online SIMA
licensing system, are required by U.S. Customs and Border Protection
(CBP) for filing entry summary documentation, or its electronic
equivalent, for imports of certain steel mill products into the United
States. Through the monitoring tool, certain import data collected from
the licenses are aggregated weekly and reported on the publicly
available SIMA system website, https://enforcement.trade.gov/steel/license/. This tool provides valuable data regarding certain steel mill
imports into the United States as early as possible and makes such data
available to the public approximately five weeks in advance of official
U.S. import statistics compiled by the U.S. Census Bureau (Census).
Section 232 Tariff on Imports of Aluminum Into the United States
On January 19, 2018, pursuant to section 232 of the Trade Expansion
Act of 1962 (the Trade Expansion Act), as amended (19 U.S.C. 1862), the
Secretary of Commerce (Secretary) transmitted to the President a report
on his investigation into the effect of imports of aluminum articles on
the national security of the United States.\1\ The Secretary found and
advised the President that aluminum articles were being imported into
the United States in such quantities and under such circumstances as to
threaten to impair the national security of the United States.\2\ In
Presidential Proclamation 9704 of March 8, 2018 (Adjusting Imports of
Aluminum Into the United States) (Proclamation 9704), the President
concurred with the Secretary's findings and decided to adjust the
imports of aluminum articles, as defined in clause 1 of Proclamation
9704, by imposing a 10 percent ad valorem tariff on such articles
imported from most countries.\3\
---------------------------------------------------------------------------
\1\ See The Effect of Imports of Aluminum on the National
Security: An Investigation Conducted Under Section 232 of the Trade
Expansion Act of 1962, As Amended, U.S. Department of Commerce
Report, dated January 11, 2018 (https://www.commerce.gov/files/effect-imports-aluminum-national-security-investigation-conducted-under-section-232-trade); see also Adjusting Imports of Aluminum
Into the United States, Proclamation No. 9704, 83 FR 11619 (March
15, 2018) (Presidential Proclamation No. 9704).
\2\ Presidential Proclamation No. 9704, 83 FR at 11619.
\3\ See Adjusting Imports of Aluminum Into the United States,
Proclamation No. 9704, 84 FR 11619, 11621 (March 8, 2018)
(Presidential Proclamation No. 9704).
---------------------------------------------------------------------------
Subsequently, in Presidential Proclamation 9893 of May 19, 2019
(Adjusting Imports of Aluminum Into the United States) (Proclamation
9893), the President stated that the United States successfully
concluded discussions with Canada and Mexico on satisfactory
alternative means to address the threatened impairment of the national
security posed by aluminum imports from Canada and Mexico.\4\ The
United States agreed on a range of measures with Canada and Mexico to
prevent the importation of aluminum that is unfairly subsidized or sold
at dumped prices, to prevent the transshipment of aluminum, and to
[[Page 23749]]
monitor for and avoid import surges.\5\ These measures are expected to
allow imports of aluminum from Canada and Mexico to remain stable, at
historical levels without meaningful increases, thus permitting the
domestic capacity utilization to remain reasonably commensurate with
the target level recommended in the Secretary's report.\6\
Additionally, the President noted these measures will provide
effective, long-term alternative means to address the contribution of
these countries' imports to the threatened impairment of the national
security.\7\
---------------------------------------------------------------------------
\4\ Presidential Proclamation No. 9893, 84 FR at 23983.
\5\ Id.
\6\ Id.
\7\ Id.
---------------------------------------------------------------------------
Furthermore, in Proclamation 9893, the President determined that,
under the framework in the agreements, imports of aluminum from Canada
and Mexico would no longer threaten to impair the national security,
and thus the President decided to exclude Canada and Mexico from the
tariff proclaimed in Proclamation 9704, as amended.\8\ Finally, the
President noted that the United States will monitor the implementation
and effectiveness of these measures in addressing our national security
needs, and that the President may revisit this determination, as
appropriate.\9\
---------------------------------------------------------------------------
\8\ Id.
\9\ Id.
---------------------------------------------------------------------------
Explanation of Proposed Rule
Pursuant to his authority under section 301 of the Census Act, as
amended (13 U.S.C. 301), the Secretary of Commerce proposes to
establish a system of import licensing to facilitate the monitoring of
imports of aluminum articles, including monitoring for import surges.
The Secretary of Commerce has delegated the responsibility for issuing
these regulations to the Assistant Secretary for Enforcement and
Compliance. The International Trade Administration is thus proposing a
rule, and requesting comments, to establish a web-based aluminum
licensing and import monitoring system. AIM will operate in a similar
way as the existing SIMA system and will be codified under 19 CFR 361.
Minor changes have been proposed to regulations for the SIMA system
which we propose to incorporate in AIM, if the modifications to the
SIMA system are promulgated in a final rule.\10\
---------------------------------------------------------------------------
\10\ See Modification of Regulations Regarding the Steel Import
Monitoring and Analysis System, 85 FR 17515 (March 30, 2020).
---------------------------------------------------------------------------
The license application of AIM will be comprised of three parts:
(1) An online registration system for aluminum importers;
(2) An automatic aluminum license issuance system; and
(3) An import monitoring website.
Importers of basic aluminum products (listed in Annex II), which
include all aluminum products currently subject to Section 232 tariff,
will be required to obtain an aluminum import license for each shipment
and must provide the license number to CBP as part of the submission of
the entry summary, or its electronic equivalent. The only exceptions
are the low-valued imports (i.e., aluminum imports valued under $5,000
per shipment described below) or informal entries as described below.
AIM will be based on automatically granted import licenses that
will be required to import covered aluminum products (including all
aluminum products currently subject to Section 232 duties). Because
Commerce grants import licenses prior to the submission of an
importation's customs entry summary data (up to 2 months before release
of Census data), this approach ensures that the aluminum import monitor
will function as an early warning system--yielding public data about 5-
6 weeks prior to import statistics released by Census. Finally, the
proposed aluminum import monitoring system would enable Commerce to
gather and publish data on where aluminum was ``smelted and poured,''
in keeping with changes that have been proposed to regulations for the
SIMA system. See 19 CFR part 360 to understand how the current SIMA
system is currently operated. Because the SIMA system has worked well,
Commerce proposes to have AIM be similar for imports on certain
aluminum products. Parties are encouraged to comment on any part of the
proposed regulations. Commerce proposes to codify the Aluminum
Regulations in 19 CFR part 361.
Aluminum Import Licensing System
Similar to the steel licensing system, the aluminum import
licensing system will include both an online registration system for
importers and an automatic aluminum import license issuance system. In
order to obtain an aluminum import license, an importer or the
importer's agent or customs broker, must first register with Commerce
and be assigned a username. This username will be required to log on to
the aluminum import license issuance system. Although a primary
username will be issued to an importing company or brokerage house, all
operating units within the company (e.g., individual branches,
divisions or employees) may have separate usernames associated with
different email addresses that will be associated with the parent
company. The aluminum import license issuance system will be designed
to allow multiple users of a single identification number from
different locations within the company to enter information
simultaneously.
Any company or broker with a United States address may register and
obtain a username. There is no fee to register and a username will be
issued immediately if all registration fields are filled out. As part
of the registration process, the importer, agent or customs broker will
be required to provide certain general information. Such information
will include the applicant company name, Employer Identification Number
(EIN) or the CBP-issued importer number (where no EIN is available),
address, phone number, contact information and email address for both
the company headquarters and any branch offices that will be applying
for aluminum licenses. This information will be used solely for the
purposes of administering the aluminum import licensing and monitoring
programs. The information will not be released by Commerce, except as
required by U.S. law. Commerce will begin registering and issuing user
login names at least two weeks prior to the implementation date of the
aluminum licensing program. The username will be needed to apply for
the license.
Aluminum import licenses will be issued to registered importers,
customs brokers or their agents through an automatic aluminum import
licensing system. The separately issued username discussed above will
be required for company registration in the system. There will be no
fee charged to apply for the import licenses.
Similar to steel imports, aluminum import licenses will be issued
automatically after the completion of the application form. In order to
obtain the license, the applicant must report the following information
about the aluminum import transaction:
i. Filer company name and address;
ii. Filer contact name, phone number, fax number and email address;
iii. Entry type (i.e., Consumption, Foreign Trade Zone);
iv. Importer name;
v. Exporter name;
vi. Manufacturer name (filer may state ``unknown'');
vii. Country of origin;
viii. Country of exportation;
ix. Expected date of export;
x. Expected date of import;
xi. Expected port of entry;
xii. Current HTS number (from Chapters 76);
xiii. Country where aluminum was smelted and poured;
[[Page 23750]]
xiv. Quantity (in kilograms) and
xv. Customs value (U.S. $).
Fields #1 and #2 above (e.g., applicant company name and address
and the applicant's contact information) will be generated
automatically in the license form from the company registration
information. Other information will be available from drop down lists
in the application form (e.g., Aluminum HTS numbers, country of origin/
smelt, port of entry) and will not have to be typed. A sample copy of
the proposed aluminum import license will be available for viewing on
Enforcement and Compliance's website (https://trade.gov/aluminum/).
Upon completion of the application form, the importer, customs
broker or the importer's agent will certify the form as to the accuracy
and completeness of the information and submit the form electronically.
After refreshing the page, the system will automatically issue an
aluminum import license number. The refreshed form containing the
submitted information and the newly issued license number will appear
on the screen (the ``license form''). Applicants can print the license
form themselves. If needed, copies of completed license forms can be
retrieved by the user or requested from Commerce during normal business
hours.
The aluminum import license will be required on every entry of
covered aluminum product (except informal entries covered below). Like
SIMA, a single license can cover multiple products as long as the
information at the top of the form (i.e., importer, exporter,
manufacturer, and country of origin and exportation, and the expected
dates of exportation and expected date of importation) are the same for
the shipment. However, separate licenses will be required if any of the
information above differs with respect to a given set of covered
imported aluminum products. As a result, a single CBP entry may require
more than one aluminum import license. The applicable license number(s)
must cover the total quantity of aluminum entered and should match the
information provided on the CBP entry summary. There is no requirement
to present physical copies of the license forms at the time of entry
summary; however, copies must be maintained in accordance with CBP's
normal requirements. Licenses will be issued for single use and will be
specific to a shipment.
Certain aggregate information collected from the license
application system will be posted on the aluminum import surge
monitoring website. Subject to comments received, only the aggregate
information described below will be available to the public. All other
information including copies of the licenses and the names of
importers, exporters, and manufacturers, will be considered business
proprietary information and will not be released to the public.
Aluminum Import Monitoring System
Commerce will create a standalone aluminum import monitoring
website. This website will report certain aggregate information on
aluminum imports categories obtained from the aluminum licenses.
Aggregate information will be reported on a monthly basis by country of
origin, country of smelt and pour, and aluminum product category and
will include import quantity (metric tons), import Customs value (U.S.
dollars) and average unit value (dollars per metric ton). However,
Commerce will not report information if it would reveal business
proprietary information. Reported monthly import data will be refreshed
each week with new data on licenses issued in the prior week. This data
collected may be adjusted periodically for corrected, canceled or
unused aluminum import licenses, if deemed appropriate for accurate
monitoring purposes. Information provided in the public import monitor
will mirror that available for steel.
The monitoring system will also present a range of historical data
for comparison purposes. This will include comparisons to the previous
month and to the same month in the previous year; three month rolling
averages along with similar comparisons to the immediately preceding
period, the same period from the preceding year; and monthly import
data on each aluminum product category. The public import monitoring
system for aluminum articles will be similar to the monitoring system
for SIMA. Commerce welcomes comments regarding the format of the
monitoring system for AIM, and will incorporate any changes that are
feasible.
Duration of the Aluminum Import License
The aluminum import license can be applied for up to 60 days prior
to the expected date of importation and until the date of filing of the
entry summary documents, or its electronic equivalent. The aluminum
import license is valid for up to 75 days; however, import licenses
that were valid on the date of importation but expired prior to the
filing of entry summary data will be accepted. Special timing issues
surrounding withdrawal of products from a warehouse, foreign trade zone
issues, and temporary imports will be handled separately, as explained
below.
Handling of Aluminum to Foreign Trade Zones (FTZs)
Commerce proposes to require a license for aluminum shipped into a
U.S. FTZ. Because a CBP entry number would not be available for
shipments entering the FTZ, the license required for entry into the
zone will not require the CBP entry number. As with steel, a separate
license will not be required upon withdrawal from the FTZ.
Informal Entries and Low-Value Aluminum Entries
No import license shall be required on informal entries of aluminum
products, such as merchandise valued at less than $2,500. For
additional information about informal entries, refer to 19 CFR
360.101(d) of the proposed regulatory text. For shipments containing
less than $5,000 worth of aluminum, applicants can apply for a reusable
Low-Value License; refer to 19 CFR 360.103(f) of the proposed
regulatory text.
Interim Monitoring
The aluminum import monitor will provide information on U.S.
imports of aluminum from all countries by broad product types in both
value and volume measures. Once the license collection begins,
additional data will be added to the aluminum monitor. The aluminum
import monitor will be similar to the monitor available for steel
imports. However, it will not encompass the preliminary Census data,
which is incorporated into the steel monitor. Over the last 10 years,
there have been advancements to Census's regular data release schedule
for its public monthly trade statistics. Commerce believes that the
early release preliminary data from Census is not critical to the early
warning monitor because the aluminum import license data will be
available. However, the Department intends to keep using preliminary
Census data for purposes of steel monitoring.
Classifications
Executive Order 12866
The Office of Management and Budget (OMB) has determined that this
proposed rule is significant for purposes of Executive Order 12866.
Executive Order 13771
This proposed rule is not expected to be subject to the
requirements of Executive Order 13771 because this proposed rule is
expected to result in no more than de minimis costs.
[[Page 23751]]
Paperwork Reduction Act
This proposed rule contains the collection of information subject
to the Paperwork Reduction Act, 44 U.S.C. Chapter 35 (PRA). Similar
requirements have been approved for steel by OMB (OMB No.: 0625-0245;
Expiration Date: 01/31/2021). Based on Commerce's experience with
similar burdens for steel and sample data for aluminum entries,
Commerce estimates that public reporting for this collection of
information will be less than 10 minutes per response, including the
time for reviewing instructions, and completing and reviewing the
collection of information. Commerce also estimates that the average
registered user will complete 173 licenses per year.
Paperwork Reduction Act Data:
OMB Number: 0625-.
ITA Number:
Type of Review: Regular Submission.
Affected Public: Business or other for-profit.
Estimated Number of Registered Users: 1,750.
Estimated Time per Response: less than 10 minutes.
Estimated Total Annual Burden Hours: 46,428 hours.
Estimated Total Annual Costs: $0.00.
Notwithstanding any other provision of law, no person is required to
respond to nor shall a person be subject to a penalty for failure to
comply with a collection of information subject to the requirements of
the Paperwork Reduction Act unless that collection of information
displays a current valid OMB Control Number.
Request for Comments: Comments are invited on (a) Whether the
proposed collection of information is necessary for the proper
performance of the functions of the agency, including whether the
information shall have practical utility; (b) the accuracy of the
agency's estimate of the burden (including hours and costs) of the
proposed collection information; (c) ways to enhance the quality,
utility, and clarity of the information to be collected; and (d) ways
to minimize the burden of the collection of information on respondents,
including through the use of automated collection techniques or forms
of information technology.
All comments on the information collection will be summarized and/
or included in the request for OMB approval of this information
collection; they also will become a matter of public record. Send
comments regarding the burden estimate or any other aspect of this
collection of information, including suggestions for reducing this
burden, as directed under ADDRESSES and DATES as well as to OIRA at
[email protected], or fax to 202-395-7285.
Executive Order 13132
This proposed rule does not contain policies with federalism
implications as that term is defined in section 1(a) of Executive Order
13132, dated August 4, 1999 (64 FR 43255 (August 10, 1999)).
Regulatory Flexibility Act
The Chief Counsel for Regulation has certified to the Chief Counsel
for Advocacy of the Small Business Administration under the provisions
of the Regulatory Flexibility Act, 5 U.S.C. 605(b), that the proposed
rule if adopted, would not have a significant economic impact on a
substantial number of small entities as that term is defined in the
Regulatory Flexibility Act, 5 U.S.C. 601 et seq. (RFA). A summary of
the factual basis for this certification is below.
This proposed rule will not have a significant economic impact on a
substantial number of companies. This rule, if implemented, would: (1)
Require import license applicants to specify certain information
including the country where aluminum used in the manufacture of the
imported aluminum product was smelted and poured; and (2) cover the
following HTS codes: 7601, 7604, 7605, 7606, 7607, 7608, 7609,
7616.99.51.60, and 7616.99.51.70. The entities that would be impacted
by this rule are importers and brokerage companies that import aluminum
products. Based on statistics derived from current license applications
for steel, of the approximately 557,143 licenses issued each year,
Commerce estimates that less than two percent of the license
applications would be filed by importers and brokerage companies
considered to be small entities. AIM would cover about half of the
number of SIMA's licenses based on statistics for one month's entry
information.
Based on the current usage of the SIMA system, Commerce does not
anticipate that this proposed rule will have a significant economic
impact. AIM would be similar to the SIMA system. In most cases,
brokerage companies will apply for the license on behalf of the
aluminum importers. Many of the same brokerage firms that handle steel
imports will likely handle aluminum imports. Most brokerage companies
that are currently involved in filing documentation for importing goods
into the United States are accustomed to CBP's automated entry filing
systems. Today, CBP's filings are handled electronically. Therefore,
the proposed license application should not be a significant obstacle
to any firm. Should an importer or brokerage company need to register
for an account or apply for a license non-electronically, a fax/phone
option is available at Commerce during regular business hours. There
will be no cost to register for a company-specific aluminum license
account and no cost to file for the license. Each license form is
expected to take less than 10 minutes to complete and collects much of
the same information required for CBP entry summary. The import license
is the only additional U.S. entry requirement that the importers or
their representatives must fulfill in order to import each covered
product shipment.
Commerce does not charge fees for licenses. Similar to the
estimates used for the steel license program, Commerce estimates that
the likely aggregate license costs incurred by small entities in terms
of the time to apply for licenses as a result of this proposed rule
would be less than two percent, or an estimated $18,571, of the
estimated total $928,560 cost to all aluminum importers to process the
on-line automatic licenses. These calculations are based on an hourly
pay rate of $20.00 multiplied by the estimated 46,428 total annual
burden hours. The vast majority of licenses are for large companies.
The average cost of a single license is less than $4.17 based on the
estimate that one license requires less than 10 minutes of the filer's
time.
This proposed rule contains collection-of-information requirements
subject to review and approval by OMB under the PRA.
Public reporting for this collection of information is estimated to
be less than 10 minutes per response, including the time for reviewing
instructions, and completing and reviewing the collection of
information.
Therefore, the proposed rule would not have a significant economic
impact on a substantial number of small business entities. For this
reason, an Initial Regulatory Flexibility Analysis is not required and
one has not been prepared.
List of Subjects in 19 CFR Part 361
Administrative Practice and Procedure, Business and Industry,
Imports, Reporting and Recordkeeping Requirements, Aluminum.
Dated: April 8, 2020.
Jeffrey I. Kessler
Assistant Secretary for Enforcement and Compliance.
0
For the reasons stated in the preamble, the Department of Commerce
proposes to add 19 CFR part 361 as follows:
[[Page 23752]]
19 CFR PART 361--ALUMINUM IMPORT MONITORING AND ANALYSIS SYSTEM
Sec.
361.101 Aluminum import licensing.
361.102 Online registration.
361.103 Automatic issuance of import licenses.
361.104 Aluminum import monitoring.
361.105 Duration of the aluminum import licensing requirement.
361.106 Fees.
361.107 Hours of operation.
361.108 Loss of electronic licensing privileges.
Sec. 361.101 Aluminum import licensing.
(a) In general. (1) All imports of basic aluminum products are
subject to the import licensing requirements. These products are listed
in Annex II. Registered users will be able to obtain aluminum import
licenses on the Aluminum Import Monitoring and Analysis (AIM) website.
This website contains two sections related to import licensing--the
online registration system and the automatic aluminum import license
issuance system. Information gathered from these licenses will be
aggregated and posted on the import monitoring section of the AIM
system website.
(2) A single license may cover multiple products as long as certain
information on the license (e.g., importer, exporter, manufacturer and
country of origin) remains the same. However, separate licenses for
aluminum entered under a single entry will be required if the
information differs. As a result, a single Customs entry may require
more than one aluminum import license. The applicable license(s) must
cover the total quantity of aluminum entered and should cover the same
information provided on the Customs entry summary.
(b) Entries for consumption. All entries for consumption of covered
aluminum products, other than the exception for ``informal entries''
listed in paragraph (d) of this section and the exception for shipments
from Foreign Trade Zones into the commerce of the United States listed
in paragraph (c) of this section, will require an import license prior
to the filing of Customs entry summary documents, or its electronic
equivalent. The license number(s) must be reported on the entry summary
(Customs Form 7501), or its electronic equivalent, at the time of
filing. There is no requirement to present physical copies of the
license forms at the time of entry summary. However, copies must be
maintained in accordance with Customs' normal requirements. Entry
summaries submitted without the required license number(s) will be
considered incomplete and will be subject to liquidated damages for
violation of the bond condition requiring timely completion of entry.
(c) Foreign Trade Zone entries. All shipments of covered aluminum
products into a foreign trade zones (FTZ), known as FTZ admissions,
will require an import license prior to the filing of FTZ admission
documents, or its electronic equivalents. The license number(s) must be
reported on the application for FTZ admission and/or status designation
(Customs Form 214) at the time of filing. There is no requirement to
present physical copies of the license forms at the time of FTZ
admission; however, copies must be maintained in accordance with
Customs' normal requirements. FTZ admission documents submitted without
the required license number(s) will not be considered complete and will
be subject to liquidated damages for violation of the bond condition
requiring timely completion of admission. A further aluminum license
will not be required for shipments from zones into the commerce of the
United States.
(d) Informal entries. No import license shall be required on
informal entries of covered aluminum products, such as merchandise
valued at less than $2,500. This exemption applies to informal entries
only; imports of aluminum valued at less than $2,500 that are part of a
formal entry will require a license. For additional information, refer
to 19 CFR 143.21 through 143.28.
(e) Other non-consumption entries. Import licenses are not required
on temporary importation bond (TIB) entries, transportation and
exportation (T&E) entries or entries into a bonded warehouse. Covered
aluminum products withdrawn for consumption from a bonded warehouse
will require a license at the entry summary, consistent with the
requirements for ``Entries for Consumption'' identified in paragraph
(b) of this section, above.
Sec. 361.102 Online registration.
(a) In general. (1) Any importer, importing company, customs broker
or importer's agent with a U.S. street address may register and obtain
the user identification number necessary to log on to the automatic
aluminum import license issuance system. Foreign companies may obtain a
user identification number if they have a U.S. address through which
they may be reached; P.O. boxes will not be accepted. A user
identification number will be issued within two business days.
Companies will be able to register online through the AIM website.
However, should a company prefer to apply for a user identification
number non-electronically, a phone/fax option will be available at
Commerce during regular business hours.
(2) This user identification number will be required in order to
log on to the aluminum import license issuance system. A single user
identification number will be issued to an importer, customs broker or
importer's agent. Operating units within the company (e.g., individual
branches, divisions or employees) will all use the same basic company
user identification code but can supply suffixes to identify the
branches. The aluminum import license issuance system will be designed
to allow multiple users of a single identification number from
different locations within the company to enter information
simultaneously.
(b) Information required to obtain a user identification number. In
order to obtain a user identification number, the importer, importing
company, customs broker or importer's agent will be required to provide
general information. This information will include: The filer company
name, employer identification number (EIN) or Customs ID number (the
Customs-issued importer number (where no EIN is available), U.S. street
address, phone number, contact information and email address for both
the company headquarters and any branch offices that will be applying
for aluminum licenses. It is the responsibility of the applicant to
keep the information up-to-date. This information will not be released
by Commerce, except as required by U.S. law.
Sec. 361.103 Automatic issuance of import licenses.
(a) In general. Aluminum import licenses will be issued to
registered importers, customs brokers or their agents through an
automatic aluminum import licensing system. The licenses will be issued
automatically after the completion of the form.
(b) Customs entry number. Filers are not required to report a
Customs entry number to obtain an import license but are encouraged to
do so if the Customs entry number is known at the time of filing for
the license.
(c) Information required to obtain an import license. (1) The
following information is required to be reported in order to obtain an
import license (if using the automatic licensing system, some of this
information will be provided automatically from
[[Page 23753]]
information submitted as part of the registration process):
(i) Filer company name and address;
(ii) Filer contact name, phone number, fax number and email
address;
(iii) Entry type (i.e., Consumption, FTZ);
(iv) Importer name;
(v) Exporter name;
(vi) Manufacturer name (filer may state ``unknown'');
(vii) Country of origin;
(viii) Country of exportation;
(ix) Expected date of export;
(x) Expected date of import;
(xi) Expected port of entry;
(xii) Current HTS number (from Chapter 76);
(xiii) Country where aluminum was smelted and poured;
(xiv) Quantity (in kilograms) and
(xv) Customs value (U.S. $).
(2) Certain fields will be automatically filled out by the
automatic license system based on information submitted by the filer
(e.g., product category, unit value). Filers should review these fields
to help confirm the accuracy of the submitted data.
(3) Upon completion of the form, the importer, customs broker or
the importer's agent will certify as to the accuracy and completeness
of the information and submit the form electronically. After refreshing
the page, the system will automatically issue an aluminum import
license number. The refreshed form containing the submitted information
and the newly issued license number will appear on the screen (the
``license form''). Filers can print the license form themselves only at
that time. For security purposes, users will not be able to retrieve
licenses themselves from the license system at a later date for
reprinting. If needed, copies of completed license forms can be
requested from Commerce during normal business hours.
(d) Duration of the aluminum import license. The aluminum import
license can be applied for up to 60 days prior to the expected date of
importation and until the date of filing of the entry summary
documents, or in the case of FTZ admissions, the filing of Customs form
214, or their electronic equivalents. The aluminum import license is
valid for 75 days; however, import licenses that were valid on the date
of importation but expired prior to the filing of entry summary data
will be accepted.
(e) Correcting submitted license information. Users will need to
correct licenses themselves if they determine that there was an error
submitted. To access a previously issued license, a user must log on
with his user identification code and identify the license number and
the quantity (in kilograms) for the first product shown on the license.
The information on the license should match the information presented
in the entry summary data as closely as possible. This includes the
value and quantity of the shipment, the expected date of importation,
and the customs port of entry.
(f) Low-value licenses. There is one exception to the requirement
for obtaining a unique license for each Customs entry. If the total
value of the covered aluminum portion of an entry is less than $5000,
applicants may apply to Commerce for a low-value license that can be
used in lieu of a single-entry license for low-value entries.
Sec. 361.104 Aluminum import monitoring.
(a) Throughout the duration of the licensing requirement, Commerce
will maintain an import monitoring system on the AIM website that will
report certain aggregate information on imports of aluminum products
obtained from the aluminum licenses, as described in paragraphs (b) and
(c) of this section, provided that it does not reveal business
proprietary information.
(b) Aggregate data will be reported on a monthly basis by country
of origin, country of smelt and pour, and aluminum product category and
will include import quantity (metric tons), import customs value (U.S.
$), and average unit value ($/metric ton). The website will also
contain certain aggregate data at the 6-digit Harmonized Tariff
Schedule level and will also present a range of historical data for
comparison purposes.
(c) Reported monthly import data will be refreshed each week with
new data on licenses issued during the previous week. This data will
also be adjusted periodically for cancelled or unused aluminum import
licenses, as appropriate.
Sec. 361.105 Duration of the aluminum import licensing requirement.
The licensing program will be in effect indefinitely. The licenses
will be valid for 10 business days after the expiration of this program
to allow for the final filing of required Customs documentation.
Sec. 361.106 Fees.
No fees will be charged for obtaining a user identification number,
issuing an aluminum import license or accessing the aluminum import
monitoring system.
Sec. 361.107 Hours of operation.
The automatic licensing system will generally be accessible 24
hours a day, 7 days a week but may be unavailable at selected times for
server maintenance. If the system is unavailable for an extended period
of time, parties will be able to obtain licenses from Commerce directly
via fax during regular business hours. Should the system be
inaccessible for an extended period of time, Commerce would advise
Customs to consider this as part of mitigation on any liquidated damage
claims that may be issued.
Sec. 361.108 Loss of electronic licensing privileges.
Should Commerce determine that a filer consistently files
inaccurate licensing information or otherwise abuses the licensing
system, Commerce may revoke its electronic licensing privileges without
prior notice. The filer will then only be able to obtain a license
directly from Commerce. Because of the additional time needed to review
such forms, Commerce may require up to 10 working days to process such
forms. Delays in filing caused by the removal of a filer's electronic
filing privilege will not be considered a mitigating factor by the U.S.
Customs Service.
[FR Doc. 2020-07791 Filed 4-28-20; 8:45 am]
BILLING CODE 3510-DS-P