[Federal Register Volume 85, Number 247 (Wednesday, December 23, 2020)]
[Rules and Regulations]
[Pages 83804-83816]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-28166]
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DEPARTMENT OF COMMERCE
International Trade Administration
19 CFR Part 361
[Docket No. 201014-0270]
RIN 0625-AB18
Aluminum Import Monitoring and Analysis System
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
ACTION: Final rule.
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SUMMARY: In this final rule, the U.S. Department of Commerce (Commerce)
adopts the Aluminum Import Monitoring and Analysis (AIM) system by
promulgating new regulations that establish a website for the AIM
system that consists of an online aluminum import license application
platform and public AIM monitor; require importers, customs brokers or
their agents to apply for and obtain an import license for each entry
of certain aluminum products into the United States through the AIM
system website; require license applicants to identify, among other
requirements, the country or countries where the largest and the second
largest volume of primary aluminum used in the manufacture of the
imported aluminum product was smelted (subject to certain exceptions)
and the country where the aluminum product was most recently cast;
allow for the public release of certain import license data on an
aggregate basis, as appropriate, on the public AIM monitor; and apply
the license requirement to all imports of basic aluminum products.
Further, Commerce is adopting the aluminum import license application
form in accordance with the Paperwork Reduction Act (PRA). Lastly,
Commerce is notifying parties that, after the AIM system is in place,
Commerce will seek additional comment from parties on potential
improvements or changes to the system in a subsequent notice.
DATES:
Effective date: January 25, 2021.
Applicability date: The AIM system website will be operational on
January 4, 2021. Therefore, potential license applicants will be able
to obtain their user identification numbers and apply for licenses
beginning on January 4, 2021. Licenses will be required for all covered
aluminum imports on or after January 25, 2021. For further information
regarding a one-year delay for portions of the final rule, see
SUPPLEMENTARY INFORMATION.
ADDRESSES: The new AIM system website that will be operational on
January 4, 2021 is https://www.trade.gov/aluminum. Through this
website, potential license applicants can register for the online
license application platform and apply for licenses. Additionally, the
public AIM monitor is also featured on this website.
More information can be found at https://www.trade.gov/aluminum.
Commerce is offering a virtual demonstration of the online license
application platform for potential license applicants. Commerce is also
offering a virtual demonstration of the public AIM monitor, which is
available to the general public. Although the demonstrations will be
completely virtual, Commerce will have a limited number of spots
available for participation in the demonstrations, that will occur
prior to the effective date of this rule. For specific dates and times
of the demonstrations, and to participate in the demonstrations, please
visit https://www.trade.gov/aluminum.
FOR FURTHER INFORMATION CONTACT: Julie Al-Saadawi at (202) 482-1930,
Brandon Custard at (202) 482-1823, or Jessica Link at (202) 482-1411.
SUPPLEMENTARY INFORMATION:
Background
On May 17, 2019, the United States announced joint understandings
with Canada and Mexico, respectively, concerning trade in aluminum
covered by the action taken pursuant to Section 232 of the Trade
Expansion Act of 1962, as amended. Among other things, the
understandings call for the monitoring of aluminum trade between the
United States and Canada and Mexico, respectively. Consistent with the
joint understandings, and to enhance U.S. Government monitoring and
analysis of aluminum products more generally, Commerce published a
proposed rule on April 29, 2020 to establish the AIM system. The goal
of the AIM system is to allow for the effective and timely monitoring
of import surges of specific aluminum products and to aid in the
prevention of transshipment of aluminum products. Over the past two
decades, Commerce has operated the similar recently updated Steel
Import Monitoring and Analysis (SIMA) system that allows for the
effective and timely monitoring of import surges of specific steel
products, and aids in the prevention of transshipment of steel
products.
Modeling the AIM System on the SIMA System
To the extent practicable, the AIM System will operate in a similar
manner as the SIMA system, which has been operating under its current
authority
[[Page 83805]]
since March 11, 2005.\1\ 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 or Customs) 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 website, https://www.trade.gov/steel. This tool provides valuable data regarding U.S.
imports of certain steel mill imports, as early as possible, and makes
such data available to the public up to eight weeks in advance of
official U.S. import statistics issued by the U.S. Census Bureau
(Census).
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\1\ See Steel Import Monitoring and Analysis System, Final Rule,
70 FR 72373 (December 5, 2005).
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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.\2\ 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.\3\ 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.\4\ Between March 2018 and August 2020,
the President made several additional adjustments to the imports of
aluminum articles.\5\
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\2\ 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).
\3\ Id.
\4\ Adjusting Imports of Aluminum Into the United States,
Proclamation 9704, 83 FR 11619, 11620 (March 15, 2018) (Presidential
Proclamation 9704).
\5\ See Adjusting Imports of Aluminum Into the United States,
Proclamation 9710, 83 FR 13355 (March 22, 2018) (Presidential
Proclamation 9710); Adjusting Imports of Aluminum Into the United
States, Proclamation 9739, 83 FR 20677 (April 30, 2018)
(Presidential Proclamation 9739); Adjusting Imports of Aluminum Into
the United States, Proclamation 9758, 83 FR 25849 (May 31, 2018)
(Presidential Proclamation 9758); Adjusting Imports of Aluminum Into
the United States, Proclamation 9776, 83 FR 45019 (August 28, 2018)
(Presidential Proclamation 9776); Adjusting Imports of Derivative
Aluminum Articles and Derivative Steel Articles into the United
States, Proclamation 9980, 85 FR 5281 (January 24, 2020)
(Presidential Proclamation 9980); and Adjusting Imports of Aluminum
Articles Into United States, Proclamation 10060, 85 FR 49921 (August
14, 2020) (Presidential Proclamation 10060).
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As a result, effective March 23, 2018, certain aluminum imports
were subject to Section 232 tariffs, and imports from Canada and Mexico
were exempted from these tariffs. With respect to Canada and Mexico,
Proclamation 9704 provided that the United States would continue
ongoing discussions with these countries and exempt aluminum imports
from these countries from Section 232 tariffs.\6\ Further, Proclamation
9704 stated that Canada and Mexico would be expected to take action to
prevent transshipment of aluminum imports through these countries to
the United States.\7\ Subsequently, Presidential Proclamation 9758 of
May 31, 2018 (Adjusting Imports of Aluminum into the United States)
(Proclamation 9758) removed the exemption for aluminum imports from
Canada and Mexico, and imposed Section 232 duties on aluminum imports
from these countries, effective June 1, 2018.\8\
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\6\ See Presidential Proclamation 9704, 83 FR at 11620.
\7\ Id.
\8\ See Presidential Proclamation 9758, 83 FR at 25850.
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On May 17, 2019, the United States announced that discussions had
yielded joint understandings with Canada and Mexico, respectively, to
remove the Section 232 tariffs for aluminum imports from those
countries.\9\ As part of the joint understandings, the United States
and Canada, and the United States and Mexico, agreed to implement
effective measures to prevent the transshipment of aluminum products
made outside of the United States, Canada, and Mexico, among other
commitments. Additionally, the joint understandings provide that the
countries will establish an agreed-upon process for monitoring aluminum
trade between them. In light of the joint understandings, Presidential
Proclamation 9893 of May 19, 2019 (Adjusting Imports of Aluminum into
the United States) (Proclamation 9893) provided that a satisfactory
alternative means had been agreed upon and, effective May 21, 2019,
aluminum imports from Canada and Mexico would not be subject to Section
232 tariffs.\10\
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\9\ See Joint Statement by the United States and Canada on
Section 232 Duties on Steel and Aluminum, dated May 17, 2019,
available at https://ustr.gov/sites/default/files/Joint_Statement_by_the_United_States_and_Canada.pdf; Joint Statement
by the United States and Mexico on Section 232 Duties on Steel and
Aluminum, dated May 17, 2019, available at https://ustr.gov/sites/default/files/Joint_Statement_by_the_United_States_and_Mexico.pdf.
\10\ See Adjusting Imports of Aluminum into the United States,
Proclamation 9893, 84 FR 23983 (May 19, 2019).
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Proposed Rule
On April 29, 2020, Commerce published a proposal for the
establishment of the AIM system in 19 CFR part 361.\11\ Commerce
received 17 comments on the Proposed Rule, and we have addressed those
comments below. The Proposed Rule, comments received, and this final
rule can be accessed using the Federal eRulemaking portal at http://www.regulations.gov/. After analyzing and considering the comments
received, we are adopting regulations to establish the AIM system.
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\11\ Aluminum Import Monitoring and Analysis System Proposed
Rule, 85 FR 23748 (April 29, 2020) (Proposed Rule).
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Explanation of Regulatory Provisions and Changes From the Proposed Rule
Pursuant to its authority under the Census Act, as amended (the
Census Act) (13 U.S.C. 301(a) and 302), and consistent with the joint
understandings, Commerce is establishing a system of import licensing
to facilitate the monitoring of imports of aluminum articles, including
monitoring for import surges, known as the AIM system. Commerce has
thus proposed a rule and received comments regarding the establishment
of the AIM system. The AIM system will operate in a similar way as the
existing SIMA system (19 CFR part 360) and will be codified under 19
CFR part 361. Also, Commerce recently incorporated minor changes into
its regulations for the SIMA system.\12\ The AIM system tracks the
modified SIMA system as closely as possible except where necessary to
address the inherent differences between steel and aluminum imports.
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\12\ See Modification of Regulations Regarding the Steel Import
Monitoring and Analysis System, 85 FR 56162 (September 11, 2020)
(SIMA Modification).
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The responsibility for issuing these regulations is delegated to
the Assistant Secretary for Enforcement and Compliance.
[[Page 83806]]
The AIM system is based entirely on a web-based platform at https://www.trade.gov/aluminum and is comprised of the online registration
system, automatic aluminum import license issuance system, and aluminum
import monitor. As addressed in further detail below, for purposes of
importing basic aluminum products,\13\ any importer, importing company,
customs broker or importer's agent of basic aluminum products must (1)
register and obtain a username, (2) file for and obtain a unique
aluminum import license (issued automatically) for each shipment, and
(3) provide the license number to CBP as part of the submission of the
entry summary form, Customs Form 7501, or its electronic equivalent. As
discussed below, aluminum imports valued under $5,000 per shipment may
obtain a multi-use low-value license. Additionally, informal entries
are exempt from the licensing requirement.\14\
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\13\ The AIM system will cover basic aluminum products under the
following HTS codes: 7601, 7604, 7605, 7606, 7607, 7608, 7609,
7616.99.51.60, and 7616.99.51.70. As discussed in 19 CFR
361.101(a)(1), a list of the products covered by the AIM system by
Harmonized Tariff Schedule (HTS) codes can be obtained on the AIM
system website. The HTS codes, which are maintained by the U.S.
International Trade Commission (ITC), may be updated periodically to
reflect revisions to the codes.
\14\ See 19 CFR 143.21 through 143.28 for further information on
informal entries.
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The public AIM monitor, described further below, will aggregate and
report certain information obtained from the aluminum licenses on a
monthly basis and will be refreshed each week, as appropriate.
Additionally, outdated license information will be replaced, where
available, with publicly available U.S. import statistics. Like the
public SIMA monitor, the public AIM monitor will function as an early
warning system, yielding public data up to eight weeks prior to the
release of publicly available import statistics by Census.
Online Registration System and Automatic Aluminum Import License
Issuance System
Similar to the SIMA system, the AIM system will include both an
online registration system and an automatic aluminum import license
issuance system, as provided in 19 CFR 361.101-103. Section 361.102,
covering the online registration system, provides that in order to
obtain an aluminum import license, any importer, importing company,
customs broker or the importer's agent must first register with
Commerce and obtain a username to log into the automatic 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 AIM system will be
designed to allow multiple users of a single Employer Identification
Number (EIN) from different locations within the company to enter
information simultaneously.
There is no fee to register (see Sec. 361.106), and a username
will be issued immediately if all registration fields are completed. As
part of the registration process, the importer, importing company,
customs broker, or importer's agent will be required to provide certain
general information, including the applicant company name, EIN or the
CBP-issued importer number (where no EIN is available), address, phone
number, and email address for both the company's 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.
Section 361.103, covering the automatic issuance of import
licenses, provides that 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 to apply for the import
license. There will be no fee charged to apply for the import licenses
(see Sec. 361.106). Like steel import licenses, aluminum import
licenses will be issued automatically after the completion of all
fields on the application form. In order to obtain the license, the
applicant (also referred to as the filer) must report the information
identified under Sec. 361.103(c)(1) in the fields of the license
application form. Certain fields will be generated automatically in the
license form from the information in the registration system. Other
information will be available from drop down lists in the application
form (e.g., aluminum HTS numbers, country of origin, country of smelt,
port of entry) and will not have to be typed.
Much of the information requested on the license form is readily
available to the importer or its broker and is similar to the
information required by CBP for purposes of the entry summary. For
certain fields, the information requested is not already required by
CBP. Specifically, in the Proposed Rule Commerce proposed a field to
reflect the country where the primary aluminum used in the manufacture
of the imported aluminum product was smelted and poured. However, based
on comments, and as discussed further below, in this final rule
Commerce has altered this requirement. As stated in Sec.
361.103(c)(1)(xiii), (xiv), and (xv), Commerce requires the applicant
to provide information in three separate fields: (1) The country where
the largest volume of primary aluminum used in the manufacture of the
imported aluminum product was smelted (referred to as ``country of
smelt for the largest volume of primary aluminum'' as shorthand), (2)
the country where the second largest volume of primary aluminum used in
the manufacture of the imported aluminum product was smelted (referred
to as ``country of smelt for the second largest volume of primary
aluminum'' as shorthand), and (3) the country where the aluminum used
in the imported aluminum product was most recently cast (referred to as
``country of most recent cast'' for shorthand). These fields are
further described under Sec. 361.103(c)(3). The reference to ``pour''
and ``poured'' is removed from the final rule.
Section 361.103(c)(3)(i)(A) defines the field for the country of
smelt for the largest volume of primary aluminum as the country where
the largest volume of new aluminum metal is produced from alumina (or
aluminum oxide) by the electrolytic Hall-H[eacute]roult process.\15\
Section 361.103(c)(3)(i)(B) provides that filers may state ``not
applicable'' in this field if the product contains only secondary
aluminum and no primary aluminum. Secondary aluminum is defined as
aluminum metal that is produced from recycled aluminum scrap through a
re-melting process.\16\ Additionally, recognizing that importers may
have some initial difficulties in securing this information,
[[Page 83807]]
Sec. 361.103(c)(3)(i)(C) allows filers to state ``unknown'' for this
field on the license application on a temporary basis. Specifically,
``unknown'' may be stated for a period of one year from the publication
of the final rule (i.e., up to December 23, 2021) to allow license
applicants sufficient time to gather the requisite information.
Effective December 24, 2021, filers will no longer be able to state
``unknown'' and then will be required to provide the requested
information for this field.
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\15\ As discussed further below, this definition is directly
responsive to the comments raised on the Proposed Rule as well as
third-party sources, such as the discussion of primary aluminum
production featured on the website of the Aluminum Association
(available at https://www.aluminum.org/industries/production/primary-production). This discussion demonstrates that there is a
well-understood and generally accepted description of the primary
aluminum production process in the aluminum industry that allows
Commerce to adopt the definitions in this final rule.
\16\ As discussed further below, this definition takes into
account comments on the Proposed Rule as well as third-party
sources, such as the discussion of secondary aluminum production
featured on the website of the Aluminum Association (available at
https://www.aluminum.org/industries/production/secondary-production).
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Similar to the country of smelt for the largest volume of primary
aluminum field, Sec. 361.103(c)(3)(ii)(A) defines the field for the
country of smelt for the second largest volume of primary aluminum as
the country where the second largest volume of new aluminum metal is
produced from alumina (or aluminum oxide) by the electrolytic Hall-
H[eacute]roult process. Section 361.103(c)(3)(ii)(B) also provides that
filers may state ``not applicable'' in this field if the product
contains only secondary aluminum and no primary aluminum. Additionally,
filers may state ``not applicable'' in this field if the product does
not contain a second largest volume of primary aluminum. Further,
filers will be allowed to state ``unknown'' in this field for a period
of one year from the publication of the final rule (i.e., up to
December 23, 2021) for the reasons stated above. Effective December 24,
2021, filers will no longer be able to state ``unknown'' and then will
be required to provide the requested information for this field.
Section 361.103(c)(3)(iii)(A) defines the field for the country of
most recent cast as the country where the aluminum (with or without
alloying elements) was last liquified by heat and cast into a solid
state. The final solid state can take the form of either a semi-
finished product (slab, billets or ingots) or a finished aluminum
product.\17\ Unlike the two fields described above, section
361.103(c)(3)(iii)(B) and (C) provide that filers will not be allowed
to state ``not applicable'' or ``unknown'' for this field. As discussed
further below, the country of most recent cast is information that
generally is readily available to the importer or its broker and is
most likely to be identified in the import documentation accompanying
the entry summary to be filed with CBP (invoices, lab reports, etc.).
In some instances, the country of most recent cast may be identified as
the country of origin. Further, because a semi-finished or finished
aluminum product could go through the casting process multiple times
before importation into the United States, the field only requests the
country of most recent cast.
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\17\ As discussed further below, this definition takes into
account comments on the Proposed Rule as well as third-party
sources, such as the discussion of aluminum processing featured on
the website of the Aluminum Association (available at https://www.aluminum.org/industries/processing).
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A sample copy of the aluminum import license and the accompanying
instructions will be available for viewing on Enforcement and
Compliance's website (https://www.trade.gov/aluminum/). Upon completion
of the application 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. Once the license is
issued, the system will automatically issue an aluminum import license
number which will appear on the application page. The applicant will
also receive a confirmation email. 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.
Section 361.103(e) requires that users correct licenses themselves
if they determine that there is an error submitted. To access a
previously issued license, a user must log on with his/her username and
identify the license number and the volume (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 which includes the value and quantity of the
shipment, the expected date of importation, and the customs port of
entry.
Pursuant to Sec. 361.101(b), the aluminum import license will be
required for every entry of covered aluminum products (with certain
exceptions for foreign trade zones and informal entries described
below). As with SIMA, a single license can cover multiple products, as
long as the information at the top of the form (i.e., importer,
exporter, manufacturer, country of origin and exportation, the expected
date of export, first and second country of smelt, and expected date of
import), 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 the
aluminum product 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 an entry
(as discussed above), with the exception of low-value licenses
described below.
Certain information collected from the license application system
that can be aggregated without revealing business proprietary
information will be reported on the public AIM monitor, as described in
further detail below. 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.
Duration of the Aluminum Import License
In accordance with Sec. 361.103(d), the aluminum import license
can be applied for up to 60 days prior to the expected date of import
and until the date of filing of the CBP entry summary documents, or its
electronic equivalent. The aluminum import license is valid for up to
75 days. However, import licenses which are valid on the date of import
but expire prior to the filing of CBP entry summary documents will be
accepted. Issues related to foreign trade zones are addressed below.
License Rules for Certain Types of Entries
In accordance with Sec. 361.101(e), aluminum 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.
Foreign Trade Zone Admissions
Pursuant to Sec. 361.101(c), all shipments of covered aluminum
products into foreign trade zone (FTZ), known as FTZ admissions, will
require an aluminum import license prior to the filing of FTZ admission
documents. The license number(s) must be reported on the FTZ admission
documents 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
[[Page 83808]]
maintained in accordance with Customs' normal requirements. FTZ
admission documents 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 import license will not be required for
shipments of entries for consumption from zones into the commerce of
the United States. In the case of FTZ admissions, the aluminum import
license can be applied for up to 60 days prior to the expected date of
importation into the Zone and until the date of filing of Customs Form
214. For FTZs, the licenses do not expire and covered aluminum products
do not require a new license when leaving the zone and entering for
consumption.
Informal Entries and Low-Value Licenses
In accordance with Sec. 361.101(d), no import license shall be
required on informal entries of covered aluminum products, such as
merchandise valued at less than $2,500 (see 19 CFR 143.21 through
143.28 for further information). 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.
Pursuant to Sec. 361.103(f), for shipments containing less than
$5,000 worth of aluminum, applicants can apply for a reusable low-value
license.
Public AIM Monitor
As provided in Sec. 361.104, the public AIM monitor, featured on
the AIM system website, will report certain aggregate information on
imports of aluminum product categories using both publicly available
import data and data obtained from the aluminum licenses. The public
AIM monitor will provide information on U.S. imports of aluminum from
all countries by broad product categories in both value and volume
measures. Once the license collection begins, additional data will be
added to the public AIM monitor. Aggregate data will be reported, as
appropriate, on a monthly basis by country of origin, country where the
largest volume of primary aluminum used in the manufacture of the
product was smelted, country where the second largest volume of primary
aluminum used in the manufacture of the product was smelted, country of
most recent cast, and relevant aluminum product grouping, etc. 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. Provision of aggregate data on the website may be revisited
should concerns arise over the possible release of proprietary data.
The public AIM monitor will be similar to SIMA's but will not
incorporate preliminary Census data. 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.
With respect to the public AIM monitor, which will aggregate and
report certain license data, Commerce will only release or update
weekly data on the country of smelt and cast for each product group (at
the 6-digit HTS level) if there are sufficient observations for the
product groups. Commerce releases data on its public AIM monitor under
the authority of the Census Act (13 U.S.C. 301(a) and 302) and must
adhere to Census guidance for the release of data which requires the
protection of proprietary data. After collecting the data on the
countries of smelt and country of most recent cast, Commerce will
determine whether there are sufficient data observations to report at a
6-digit product group level without disclosing proprietary data. The
public AIM monitor will divide license data into various product
groupings, which can be seen at https://www.trade.gov/aluminum. In
instances where there are few (i.e., less than three) observations of
certain country of origin/product group combinations, Commerce will not
provide this disaggregated data (i.e., product group level) when adding
the countries of smelt and country of cast data. Further, provision of
aggregate data on the public AIM monitor may be revisited should
concerns arise over the possible release of business proprietary data.
Reported monthly import data will be updated each week with new
data collected from licenses issued in the prior week. The 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 AIM monitor
will mirror the information available on the public SIMA monitor.\18\
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\18\ See SIMA Modification.
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The public AIM monitor 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.
At the sub-regulatory level, Commerce will consider adding
additional product groups (for example, aluminum scrap) to the public
AIM monitor beyond the HTS categories covered by the license
requirement, which will be based on publicly available import data.\19\
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\19\ As discussed below, after the AIM system is in place,
Commerce will seek additional comment from parties on potential
improvements or changes to the system in a subsequent notice,
including adding aluminum scrap products to the licensing
requirement.
---------------------------------------------------------------------------
Miscellaneous Provisions
Section 361.105 is reserved. Section 361.106 provides that no fees
will be charged for obtaining a username, issuing an aluminum import
license or accessing the public AIM monitor. Additionally, Sec.
361.107 provides that the AIM system will generally be accessible 24
hours a day, 7 days a week but may be unavailable at 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 email ([email protected]) 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. Lastly, Sec. 361.108
states that Commerce may revoke a filer's electronic licensing
privileges if the filer consistently files inaccurate licensing
information or otherwise abuses the system. In such instances, the
filer would only be able to obtain a license directly from Commerce,
which may take 10 working days to process. Delays in the filing caused
by the removal of a filer's electronic filing privilege will not be
considered a mitigating factor by CBP.
Response to Comments Received on the Proposed Rule
Commerce received 17 comments on the proposed rule that Commerce
considered in finalizing this rule. Below is a summary of the comments,
grouped by issue category, followed by Commerce's response. Further,
because the AIM system is being adopted for the first time in this
final rule, after the AIM system is in place, Commerce will seek
additional comment from parties on potential improvements or changes to
the system in a subsequent notice. Parties will have the opportunity to
provide further comment on any issue
[[Page 83809]]
discussed herein or any related topic at that time.
1. Country of Smelt and Pour Field
Several commenters supported the general concept of a ``smelt and
pour'' requirement, while several other commenters opposed it. Most
commenters recommended using the term ``smelt and cast'' instead of
``smelt and pour'' because they argued that ``pour'' was not a term
used widely in the aluminum industry. These commenters recommended a
wide range of alternatives.
a. Replacing ``Pour'' With ``Casting''
Several commenters recommended that Commerce collect information on
the country of smelt and replace the term ``pour'' with the country of
most recent cast. Another commenter recommended collecting information
only on the country of most recent cast, but not the country where
primary aluminum was smelted.
b. Traceability of Country of Smelt
Several commenters stated that filers would not always know where
primary aluminum used in their products was originally smelted because
primary aluminum is often smelted and shipped to one or more third
countries where it may be re-melted, alloyed, and/or shaped before
shipment to the U.S. These commenters were concerned that tracing the
primary aluminum, from the original smelting, through all the stages of
re-melting in different countries might not be possible. However,
several other commenters asserted that it is possible to trace the
country of smelt, but it might take some time to gather such
information. Another commenter requested that Commerce collect
information on country of origin, and opposed collecting information on
smelting, pouring, or casting. This commenter stated that it would be
burdensome to collect information beyond country of origin for alloys
and secondary products but did not provide further details about the
burden. This commenter also stated that it would be impossible to
collect ``smelt and pour'' information for scrap.
One commenter asserted that aluminum semi-finished goods (profiles,
castings, and rolled products) were produced using a mixture of primary
aluminum, secondary (recycled) aluminum, and pre- and post-consumer
aluminum scrap. The commenter stated that it was unclear how a smelt
and pour field should be completed for typical aluminum products where
the aluminum was smelted in various countries. This commenter
recommended removing the smelt and pour field altogether, allowing an
``unknown'' option, or replacing smelt and pour with ``last melted and
poured.'' Several other commenters explained that some aluminum imports
contain only secondary (recycled) aluminum and, as a result, requested
that importers have the option of reporting ``no primary aluminum'' in
the smelt and pour (or smelt and cast) field. Another commenter also
requested that the AIM system collect information on country of
alloying which may be different from the country of most recent cast.
c. Requiring Further Documentation and Additional Requirements
Two commenters requested that Commerce collect documentation
regarding the country of smelt and pour or the country of origin. One
of these commenters requested that Commerce collect Country of Origin
and Country of Analysis certificates, and another commenter requested
the collection of mill test certificates for each stage of processing.
Another commenter suggested that CBP examine the aluminum licenses, not
just the license number, and inspect them against other import
documents. Similarly, another commenter suggested that documentation
proving Mexican country of origin should be required for imports from
Mexico. These commenters expressed concerns that primary aluminum could
be produced in countries other than Canada and Mexico, shipped to these
countries as either ingots or other shapes, re-melted, and then entered
duty-free if declared as Canadian or Mexican country of origin.
Response: In the Proposed Rule, Commerce proposed a field to
reflect the country where the primary aluminum used in the manufacture
of the imported aluminum product was smelted and poured. Based on
comments received on the Proposed Rule, Commerce will make several
modifications to better reflect the characteristics of the aluminum
industry and provide clarity to license applicants. These modifications
are described in detail above and summarized here.
Specifically, the reference to ``country of smelt'' has been
further refined and the reference to ``country of pour'' is removed
from the final rule. Pursuant to Sec. 361.103(c)(1)(xiii), (xiv), and
(xv), Commerce will require the license applicant to provide
information in three separate fields: (1) The country where the largest
volume of primary aluminum used in the manufacture of the imported
aluminum product was smelted (referred to as ``country of smelt for the
largest volume of primary aluminum'' as shorthand), (2) the country
where the second largest volume of primary aluminum used in the
manufacture of the imported aluminum product was smelted (referred to
as ``country of smelt for the second largest volume of primary
aluminum'' as shorthand), and (3) the country where the aluminum used
in the imported aluminum product was most recently cast (referred to as
``country of most recent cast'' for shorthand). These fields are
further described under Sec. 361.103(c)(3), including definitions.
These updates also are adopted in the aluminum license application
form. We address individual comments below.
As discussed above, after the AIM system is in place, Commerce will
seek additional comment from parties on potential improvements or
changes to the system in a subsequent notice. In particular, parties
may comment on the requirement to report the country of smelt for the
largest and second largest volume of primary aluminum and the country
of most recent cast discussed herein.
A. Replace ``Pour'' With the Term ``Most Recent Casting'' and Have
Separate License Fields for ``Smelting'' and ``Most Recent Casting''
We agree with commenters that the reference to ``country of pour''
should be removed from the final rule because this term is not widely
used in the aluminum industry. Additionally, based on comments, we have
adopted the three fields described above. Requiring the completion of
these separate fields will allow Commerce to collect data that are most
relevant to the aluminum industry while minimizing the burden to
applicants. Moreover, collection of this data will allow for the
effective and timely monitoring of import surges of specific aluminum
products and will assist in preventing the transshipment of aluminum
products. Separately requiring the identification of the country of
smelt for the largest and second largest volume of primary aluminum and
the country of most recent cast better reflects data available to the
industry. Furthermore, the specificity of the requested information
should minimize confusion caused by the initially proposed ``smelt and
pour'' field.
Commerce also agrees with certain commenters' requests that clear
definitions regarding these terms should be included in the aluminum
license application. Specifically, in the country of smelt for the
largest volume of primary aluminum field, the license
[[Page 83810]]
applicant will be required to identify the country where the largest
quantity of new aluminum metal is produced from alumina (or aluminum
oxide) by the electrolytic Hall-H[eacute]roult process.\20\ The country
of smelt for the second largest volume of primary aluminum field adopts
a similar definition. The establishment of these fields and the adopted
definitions for these fields takes into account comments on the
Proposed Rule as well as third-party sources, such as the discussion of
primary aluminum production featured on the website of the Aluminum
Association.\21\ Thus, these definitions are consistent with the well-
understood and generally accepted description of the primary aluminum
production process in the aluminum industry. Additionally, these
precise field names and definitions are further refinements of the term
``country of smelt,'' that was included the Proposed Rule, to provide
increased clarity and consistency for all potentially regulated
entities.
---------------------------------------------------------------------------
\20\ See https://www.aluminum.org/industries/production/primary-production.
\21\ Id.
---------------------------------------------------------------------------
Moreover, by including a field for the country of smelt for the
second largest volume of primary aluminum, Commerce will address
concerns from foreign producers, importers, and downstream producers
that primary aluminum is often melted and chemically mixed with
secondary aluminum and/or primary aluminum from multiple countries. At
the same time, Commerce will allow applicants to state ``not
applicable'' in this field if the product does not contain a second
largest volume of primary aluminum. Additionally, applicants may state
``not applicable'' in this field if the product contains only secondary
aluminum and no primary aluminum. For clarity, Commerce defines
secondary aluminum as aluminum metal that is produced from recycled
aluminum scrap through a re-melting process.\22\ Consistent with other
definitions adopted in this final rule, this definition takes into
account comments on the Proposed Rule as well as third-party sources,
and reflects a well-understood and generally accepted description of
the secondary aluminum production process in the aluminum industry.
---------------------------------------------------------------------------
\22\ See https://www.aluminum.org/industries/production/secondary-production.
---------------------------------------------------------------------------
Lastly, in the country of most recent cast field, the license
applicant will be required to identify the country where the aluminum
(with or without alloying elements) was last liquified by heat, and
cast into a solid state.\23\ The final solid state can take the form of
either a semi-finished product (slab, billets or ingots) or a finished
aluminum product.\24\ This is a refinement of the term ``country of
pour,'' that was also in the Proposed Rule, and also provides increased
clarity as requested by commenters. And similar to the above
definitions, this definition takes into account third-party sources and
reflects a well-understood and generally accepted description of
aluminum processing in the aluminum industry. In light of this, we are
adopting these fields and corresponding definitions in the final rule.
---------------------------------------------------------------------------
\23\ See http://centuryaluminum.com/plants-products/sebree/index.html, accessed July 17, 2020 and https://www.aluminum.org/sites/default/files/GAG_001_Terms_and_Definitions_3rd_Edition_2011_01_August_21_2011_JW.pdf, accessed July 17, 2020.
\24\ See https://www.aluminum.org/industries/processing.
---------------------------------------------------------------------------
B. Option To State ``Unknown'' in the Fields for the Country of Smelt
for the Largest and Second Largest Volume of Primary Aluminum for a
One-Year Period
As stated above, recognizing that importers may have some initial
difficulty in securing the information necessary to complete the fields
for the country of smelt for the largest and second largest volume of
primary aluminum, Commerce will allow filers to state ``unknown'' in
these fields on a temporary basis. Specifically, ``unknown'' may be
stated for a period of one year from the publication of the final rule
(i.e., up to December 23, 2021) to enable license applicants sufficient
time to gather the requisite information. Effective one year from the
publication of the final rule, December 24, 2021, filers will no longer
be able to state ``unknown'' and then will be required to provide the
requested information for this field.
This will address concerns from commenters who do not always know
the country where primary aluminum was smelted, especially when it is
re-melted and alloyed with secondary aluminum. In contrast, for the
modified SIMA system, Commerce determined that steel license applicants
would be expected to know the country where the steel used in the
manufacture of the product is melted and poured for purposes of
completing this field in the license application. Specifically,
Commerce determined that this information is identifiable in the mill
test certification that would be readily available to the applicant,
and, for this reason, declined to allow SIMA license applicants an
option to state ``unknown'' in this field.\25\ Given the concerns
identified above (i.e., that aluminum license applicants may not know
the country where primary aluminum was smelted), Commerce is allowing
the use of the ``unknown'' option for aluminum license applicants as
described herein. Nevertheless, Commerce recognizes that allowing an
``unknown'' option presents the potential for abuse and possible
loophole concerns related to circumvention/transshipment and may
inhibit the accurate collection of data. Therefore, Commerce will
implement the following measures.
---------------------------------------------------------------------------
\25\ See SIMA Modification, 85 FR at 56166.
---------------------------------------------------------------------------
First, Commerce will allow the use of the ``unknown'' option for
one year after the publication of the final rule, as described above.
This will place importers on notice that they need to start collecting
the necessary documentation that tracks this information within their
supply chains. It will also allow the AIM system to be launched
expeditiously while providing importers an adjustment period to start
collecting this information. By providing this adjustment period and
considering the burden to importers, the AIM system would then be
aligned with SIMA requirements in one year when the ``unknown'' option
is removed from the form.
Second, applicants are required to certify that the information on
the license application is correct to the best of the applicant's
knowledge. Therefore, when importers select ``unknown'' in the license
application, they are certifying that this is the best information
available to them at the time of license application.
Third, Commerce will monitor use of the ``unknown'' option for
abuse, in a similar manner to current monitoring of the use of low-
value import licenses in the SIMA system. Commerce will identify
license applicants who repeatedly report ``unknown'' in the fields for
the countries where the largest and/or second largest volume(s) of
primary aluminum is smelted and contact these applicants to confirm
that they are providing the best available information.
Fourth, to the extent possible without revealing business
proprietary information, Commerce will also report data on the volume
of imports associated with licenses that use the ``unknown'' option on
the public AIM monitor. This will increase transparency and allow the
industry to closely monitor, including raising concerns, of potential
abuse and circumvention/transshipment.
[[Page 83811]]
C. Further Documentation and Additional Requirements
Although commenters requested that Commerce collect further
documentation (i.e., mill test certificates, Country of Analysis/Origin
certificates) and/or require CBP to examine licenses in order to
prevent transshipment and circumvention/evasion, Commerce will not
require such documentation or requirement at this time. These
suggestions would create additional burdens and the public has not had
an opportunity to comment. Moreover, it would be administratively
burdensome for Commerce to examine these documents in issuing licenses
through the automated license application system, and for CBP to
examine such documentation upon entry of covered aluminum products.
Such a requirement would necessitate further inter-agency consultation
and coordination and has not been considered for purposes of this final
rule.
Finally, Commerce will not collect information on the country of
alloying because this would add another field to the license form and
would likely provide redundant information that is already collected
through the identification of country of most recent cast.
That said, as discussed above, after the AIM system is in place,
Commerce will seek additional comment from parties on potential
improvements or changes to the system in a subsequent notice. Parties
may further comment on the issues discussed above at that time.
2. Expanding the License Requirement for Aluminum Scrap and/or Other
Aluminum Products Not Included in the Proposed Rule
The Proposed Rule solicited comments on a licensing requirement for
aluminum products subject to Section 232 tariffs, pursuant to
Presidential Proclamation 9704,\26\ but several commenters discussed
whether the licensing requirement should be expanded to cover
additional aluminum products. Specifically, several commenters
requested confirmation that scrap products (not subject to Section 232
tariffs) be exempted from the Proposed Rule's smelt and pour
requirement but did not comment on whether scrap products should be
subject to the licensing requirement in the first instance. Several
commenters stated that scrap should be subject to the licensing
requirement, though not subject to the Proposed Rule's smelt and pour
requirement, including one commenter that requested all of HTSUS
Chapter 76 be subject to the licensing requirement. One commenter
recommended allowing scrap importers to list the country where the
scrap was purchased as the country of origin. Additionally, a commenter
recommended expanding the licensing requirement to cover aluminum wire
and cable products (HTS 7614.90.20, 7614.90.40, and 7614.90.50) because
these products are now subject to Section 232 tariffs, pursuant to
Presidential Proclamation 9980.\27\
---------------------------------------------------------------------------
\26\ See Proposed Rule, 85 FR at 23751.
\27\ See Presidential Proclamation 9980, 85 FR 5281.
---------------------------------------------------------------------------
Response: The AIM system will not require import licenses for
aluminum scrap (HTS 7602), and certain downstream/derivative products
whose inclusion is requested in comments and are now subject to Section
232 tariffs pursuant to Presidential Proclamation 9980 (i.e., aluminum
wire and cable products (HTS 7614.90.20, 7614.90.40, and
7614.90.50)).\28\ Commerce did not request comments on including these
products in the Proposed Rule \29\ and, as a result, the public has not
been afforded an opportunity to provide comments on such a change to
the scope of products subject to the AIM system. However, Commerce has
considered the commenters' assertion that collecting data on scrap and
downstream products will assist in monitoring potential evasion/
circumvention. Accordingly, as discussed above, after the AIM system is
in place, Commerce will seek additional comment from parties on
potential improvements or changes to the system in a subsequent notice.
Parties may comment on the inclusion of these products in the AIM
system's import license requirement at that time. Furthermore, as noted
above, at the sub-regulatory level, Commerce will consider adding
additional product groups (such as aluminum scrap) to the public AIM
monitor beyond the HTS categories covered by the license requirement,
which will be based only on publicly available import data.
---------------------------------------------------------------------------
\28\ Id.
\29\ See Proposed Rule.
---------------------------------------------------------------------------
3. Reconciling License Values Post-Entry
Several commenters stated that aluminum prices are based on a
London Metal Exchange (LME) reference price that is often unavailable
at time of importation, so the price of the product imported would need
to be corrected (reconciled) post-entry. These commenters were
concerned that importers would need to correct values for all or nearly
all aluminum imports after entry, increasing the public burden on
completing the license application.
Response: As per 19 CFR 361.103(e), applicants will need to correct
their licenses if they determine that there was an error in their
application. The information on the license should match the
information presented in the Customs Form 7501 entry summary document
as closely as possible; this includes the value and quantity of the
shipment, the expected date of importation, and the Customs port of
entry. Commerce has included instructions on the license application,
specifying that importers are to provide their best estimate of the
value of imports at the time of license completion. Although this
estimate does not need to perfectly match the final reconciled value on
CBP entry summary documents, the estimate should be reasonably
accurate, based on invoices, shipping documents, or the current LME
reference price for the commodity imported (at time of license
completion). Further, the regulations state that licenses are to
closely reflect the information contained in the entry summaries.
Therefore, importers will have the ability to edit and correct the
information provided on the licenses after entry and will be able to
address large discrepancies in accordance with 19 CFR 361.103(e).
4. Reporting of Data in the Public AIM Monitor
There were two comments about the reporting of data in the public
AIM monitor. One commenter requested that data be collected and
reported at the 10-digit HTS level in order to distinguish between two
types of aluminum products, can sheet end and body stock, that are the
same at the 8-digit HTS level. Another commenter requested that the
public AIM monitor publicly disclose specific import data (including
specific importers and sources of imports), rather than aggregate
import data to increase transparency.
Response: Commerce understands that it would be optimal from the
data users' perspective to have the full 10-digit information collected
through the licenses available to the users of the public AIM monitor.
However, this may contain proprietary data, making it impossible for
Commerce to provide so much detail. Commerce will release data in as
much detail as possible (i.e., at the most disaggregated level
possible) without releasing companies' proprietary information. Like
the public SIMA monitor, Commerce will release data on its public AIM
monitor under the authority of the Census Act (13 U.S.C. 301(a) and
302) and must adhere
[[Page 83812]]
to Census guidance for the release of data which requires the
protection of proprietary data. After collecting license data, Commerce
will determine whether there are sufficient data observations (i.e.,
more than three) to report at a 6-digit HTS level without disclosing
business proprietary data. As with steel license data, the rationale
for releasing only 6-digit HTS detail information is based on the
notion that releasing data at the 10-digit HTS level from the license
collection (updated weekly) could violate these rules and likely
release identifiable proprietary information. Once Commerce begins the
license collection, Commerce will re-evaluate the level of product
detail it can release appropriately without disclosing proprietary
information.
5. Timing of License Application/Validity
One commenter requested allowing quarterly licenses that were only
estimates of the total import volume, created up to 120 days before
importation to reduce the public burden and to provide an early warning
about imports farther in advance than the 60 days in the proposed rule.
Another commenter requested that Commerce not require licenses too far
ahead of importation date (no more than 30 days).
Response: In accordance with Sec. 361.103(d), and as described
above, Commerce will require applicants to obtain a license prior to
entry, up to 60 days in advance, the same period as the existing SIMA
system. Licenses will be automatic and immediate, so an importer could
create a license only minutes before entry. However, applicants will be
encouraged to create licenses further in advance to maximize Commerce's
ability to provide the public with an early warning about import
trends. Licenses cannot be based on quarterly summaries, and volumes
should closely match those on all other documents required for
importation because allowing vague quarterly estimates would undermine
the accuracy of the system.
6. Collecting Information Related to Section 232 Tariffs
There were several comments about Section 232 tariffs and tariff
exclusions. One commenter requested requiring importers to indicate
whether they received an exclusion on the license and requested that
the public AIM monitor present exclusion data on its website. Another
commenter requested that licensing only be required for imports from
countries that are not exempt from the Section 232 program.
Response: Commerce, at this time, will not require AIM license
applicants to report information on Section 232 exclusions in the
license application. As an initial matter, the AIM system and the
Section 232 exclusion process, although both housed within Commerce,
are administered separately and under separate legal authorities.
Therefore, inclusion of a new field for Section 232 exclusions will
require further consideration and analysis. Further, because Commerce
did not request comments on including this additional field in the
Proposed Rule, the public has not been afforded an opportunity to
provide comments on what would be a significant change to the license
application.
That said, Commerce has considered the commenters' assertion that
collecting data on Section 232 exclusions could assist in monitoring
for potential surges. Accordingly, as discussed above, after the AIM
system is in place, Commerce will seek additional comment from parties
on potential improvements or changes to the system in a subsequent
notice, including the potential inclusion of a field for Section 232
exclusions on the AIM license application, at that time.
Additionally, Commerce is not accepting the commenter's request
that licenses only be required for imports from countries that are not
exempt from Section 232 tariffs. Requiring licenses for aluminum
imports from all countries is consistent with the objectives of the
joint understandings and the AIM system to monitor all imports of
aluminum for potential surges. Indeed, a main objective of the joint
understandings is to monitor potential surge patterns involving
countries exempted from the Section 232 tariffs.\30\
---------------------------------------------------------------------------
\30\ See Joint Statement by the United States and Canada on
Section 232 Duties on Steel and Aluminum, dated May 17, 2019,
available at https://ustr.gov/sites/default/files/Joint_Statement_by_the_United_States_and_Canada.pdf; Joint Statement
by the United States and Mexico on Section 232 Duties on Steel and
Aluminum, dated May 17, 2019, available at https://ustr.gov/sites/default/files/Joint_Statement_by_the_United_States_and_Mexico.pdf.
---------------------------------------------------------------------------
7. Training Materials
One commenter requested additional training material on how to
create licenses and reconcile import values.
Response: Commerce will create training webinars, a ``Frequently
Asked Questions'' page on the AIM system website, and other materials
to ensure that the public understands the licensing requirement. This
does not require regulatory modifications.
8. Bonded Warehouses
One commenter requested that bonded warehouses not be exempted from
licensing requirements. The commenter raised concerns that, because
licenses can be obtained quickly and automatically, exempting bonded
warehouses from licensing requirements creates the potential for
importers to stockpile aluminum without licenses and then to later
import them into the United States for consumption based on more
favorable pricing conditions in the U.S. market. This commenter
asserted that storing goods in bonded warehouses would also undermine
the early warning provided by requiring importers to obtain licenses
prior to entry of aluminum products.
Response: As provided in section 19 CFR 361.101(e) and consistent
with the SIMA system, Commerce will not require users to obtain
aluminum import licenses for entry into bonded warehouses. However,
entries of covered aluminum products withdrawn for consumption from
bonded warehouses will require a license at the entry summary. Entry
into bonded warehouses does not constitute an entry for consumption as
provided in Sec. 361.101(b) and (e), and some of the aluminum could
subsequently be re-exported from bonded warehouses. Additionally,
Commerce also finds that including these shipments in the aluminum
license data would likely overestimate monthly imports of aluminum for
consumption. Furthermore, this would require users to obtain two
separate licenses for importation into bonded warehouses and
importation into consumption. This would increase the public burden and
further reduce the accuracy of AIM licenses because the system would
double-count these licenses.
9. Request for Further Consultation With Mexican Government
Several commenters requested that the United States and Mexico
implement an ``agreed-upon process for monitoring aluminum trade
between both countries'' as part of USMCA negotiations. One commenter
sought explicit clarification regarding whether the AIM system
constitutes the ``agreed-upon process for monitoring aluminum trade
between countries'' in accordance with the joint understandings on
aluminum.\31\ In particular, this commenter requested that the U.S.
[[Page 83813]]
clarify the role of the AIM system with regard to the objectives of the
joint understandings. This commenter also requested that Commerce
clarify whether any additional measures to prevent unfair imports and
transshipment are intended to complement the AIM system. This commenter
further requested clarification regarding whether the AIM system could
be modified in the future in the event of an ``alternative bilateral''
agreement.
---------------------------------------------------------------------------
\31\ See Joint Statement by the United States and Mexico on
Section 232 Duties on Steel and Aluminum, dated May 17, 2019,
available at https://ustr.gov/sites/default/files/Joint_Statement_by_the_United_States_and_Mexico.pdf.
---------------------------------------------------------------------------
Another commenter asserted that the joint understandings specify
that the importing country may request consultation with the exporting
country in the event of an import surge. This commenter requested that
the AIM system therefore include a method for periodic consultations
with the Government of Mexico.
Response: Although Commerce is cognizant of commenters' concerns
regarding increased imports and transshipment, Commerce will not
consult further with the Government of Mexico at this time. The Office
of the U.S. Trade Representative is already actively engaged in ongoing
discussions with the Mexican Government regarding import surges.
Commenters should therefore direct relevant comments or questions to
USTR. The Government of Mexico is aware that the AIM system has been
proposed by the U.S. Government for monitoring aluminum import
surges.\32\ Furthermore, the AIM system is a monitoring system and not
an enforcement mechanism, therefore, incorporating a consultation
method into the system exceeds the authority under which the system is
established and the scope of its intended activities.
---------------------------------------------------------------------------
\32\ See generally Proposed Rule, 85 FR at 23748.
---------------------------------------------------------------------------
Classifications
Executive Order 12866
The Office of Management and Budget (OMB) has determined that this
final rule is significant, but not economically significant, for
purposes of Executive Order 12866.
Executive Order 13771
This final rule is not subject to Executive Order 13771 because it
imposes de minimis costs.
Executive Order 13132
This final 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)).
Paperwork Reduction Act
This rule contains a 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: 07/31/2023). Based on Commerce's experience with steel
and sample data for aluminum entries, Commerce estimates that public
reporting for the data collection of information in the aluminum import
license will be less than 10.5 minutes per response, including the time
for reviewing instructions, and completing and reviewing and correcting
the collection of information. Commerce also estimates that the average
registered applicant will complete about 173 licenses per year each and
an estimated total of 278,538 regular licenses and 50 low value
licenses will be issued each year.
Paperwork Reduction Act Data
OMB Number: 0625-0279.
ITA Number: ITA-4142a (regular license); ITA-4142b (low-value
license).
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 10.5 minutes.
Estimated Total Annual Burden Hours: 48,749 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. As discussed above, after
the AIM system is in place, Commerce will seek additional comment from
parties on potential improvements or changes to the system in a
subsequent notice. Parties may further comment on this collection of
information at that time.
Regulatory Flexibility Act
The Chief Counsel for Regulation of the Department of Commerce
certified to the Chief Counsel for Advocacy of the Small Business
Administration at the proposed rule stage that this 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). The factual basis for the
certification is found in the proposed rule and is repeated below. No
comments were received on the certification or the economic impacts of
this action. As a result, no final regulatory flexibility analysis is
required and none was prepared.
This rule will not have a significant economic impact on a
substantial number of small entities. This rule, if implemented, would:
(1) Require importers of covered aluminum products to apply for and
obtain an import license from Commerce's online license application
system; (2) for purposes of obtaining the license, require import
license applicants to provide information that is largely already
required for purposes of importation into the customs territory of the
United States pursuant to CBP requirements; (3) for information that is
not already required for entry purposes, require import license
applicants to specify certain information including the country where
primary aluminum used in the manufacture of the imported aluminum
product was smelted and where the product was most recently cast; and
(4) cover the following HTS codes: 7601, 7604, 7605, 7606, 7607, 7608,
7609, 7616.99.51.60, and 7616.99.51.70, and any subsequent revisions to
these HTS classifications.
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 under the SIMA
system, of the approximately 563,107 licenses (both regular and low-
value licenses) issued each year, Commerce estimates that less than two
percent (11,262) of steel license applications are filed by importers
and brokerage companies considered to be small entities. Commerce
estimates that the number of aluminum licenses issued under the AIM
system will be about half of the number of steel licenses under the
SIMA system, based on statistics for one month's entry information.\33\
Therefore, our estimate for aluminum is that approximately 278,588
licenses (both regular and low-value licenses) will be issued each
year, and of that figure, less than two percent (5,572) of the license
applications will be filed by importers and brokerage companies
considered to be small entities.
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\33\ This estimate is based on CBP data covering May 2019.
Specifically, in May 2019 there were approximately 64,000 entries
subject to the SIMA licensing requirement based on the covered HTS
categories for SIMA. In that same month, approximately 31,000
entries entered under the covered HTS categories for AIM.
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[[Page 83814]]
Based on the current usage of the SIMA system, Commerce does not
anticipate that this rule will have a significant economic impact on a
substantial number of small entities. The AIM system will mirror the
SIMA system to the extent practicable. 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, and, therefore, are familiar with
the SIMA online license application system upon which the AIM system is
based. 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. Additionally, the regulated entities are
already required to provide certain information required by the
aluminum license application, including the name and address of the
importer, type of aluminum product, and country of origin, along with
additional information for purposes of filing the entry summary
documentation required by CBP. For certain fields, in particular, the
fields for the country where the largest and second largest volume of
primary aluminum is smelted and the country where the aluminum product
was most recently cast, the information requested is not already
required by CBP. For the first two fields, Commerce recognizes that
there may be some difficulty in reporting the requested information,
and, therefore, is allowing parties to state ``unknown'' for one year
from the publication of the final rule for these fields. In this one
year time, Commerce anticipates that those parties will be able to
obtain the requisite information. Additionally, Commerce believes that
the country where the aluminum product was most recently cast is
information that generally is readily available to the importer or its
broker and is most likely to be identified in the import documentation
accompanying the entry summary to be filed with CBP (invoices, lab
reports, etc.). In some instances, the country of most recent cast may
be identified as the country of origin. Therefore, the license
application should not be a significant obstacle to any firm.
Further, should an importer or brokerage company need to register
for an account or apply for a license non-electronically, an email/
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 10.5 minutes to complete and collects
much of the same information required on the CBP entry summary
documentation. 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 under 19 CFR part 361.
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 rule would be
less than two percent, or an estimated $19,500, of the estimated total
$974,980 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 48,750 total annual burden hours.
The average cost of a single license is less than $4.17 based on the
estimate that one license requires less than 10.5 minutes of the
filer's time.
Therefore, the Department certified that the final rule will not
have a significant economic impact on a substantial number of small
business entities.
List of Subjects in 19 CFR Part 361
Administrative practice and procedure, Business and industry,
Imports, Reporting and recordkeeping requirements, Aluminum.
Dated: December 16, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
For the reasons stated in the preamble, the Department of Commerce
adds 19 CFR part 361 as follows:
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 [Reserved]
361.106 Fees.
361.107 Hours of operation.
361.108 Loss of electronic licensing privileges.
Authority: 13 U.S.C. 301(a) and 302.
Sec. 361.101 Aluminum import licensing.
(a) In general. (1) All imports of basic aluminum products are
subject to the import licensing requirements imposed by the U.S.
Department of Commerce (Commerce). These products are listed on the
Aluminum Import Monitoring and Analysis (AIM) system website (https://www.trade.gov/aluminum). Registered users will be able to obtain
aluminum import licenses on the AIM system website. This website
contains two sections related to import licensing--the online
registration system and the automatic aluminum import license issuance
system. Aluminum import licenses must be provided to U.S. Customs and
Border Protection (CBP or Customs) as discussed in this section.
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 exceptions discussed in paragraphs
(c) and (d) 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 admissions. All shipments of covered
aluminum products into a foreign trade zone (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
[[Page 83815]]
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. The aluminum license for FTZ
admission does not expire, and a further aluminum license will not be
required for shipments of entries for consumption 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 in accordance with
paragraph (b) of this section.
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 username necessary to log on to the automatic aluminum import
license issuance system. Foreign companies may obtain a username if
they have a U.S. address through which they may be reached; P.O. boxes
will not be accepted. A username will be issued within two business
days. Companies will be able to register online through the AIM system
website. However, should a company prefer to apply for a username non-
electronically, a phone/email option will be available at Commerce
during regular business hours.
(2) This username will be required in order to log on to the
aluminum import license issuance system. A single username 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 username 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 username. In order to obtain a
username, 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 information submitted
as part of the registration process):
(i) Filer company name and address;
(ii) Filer contact name, phone number, 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 Harmonized Tariff Schedule (HTS) number (from Chapter
76);
(xiii) Country where the largest volume of primary aluminum used in
the manufacture of the product was smelted (see paragraph (c)(3)(i) of
this section);
(xiv) Country where the second largest volume of primary aluminum
used in the manufacture of the product was smelted (see paragraph
(c)(3)(ii) of this section);
(xv) Country where the product was most recently cast (see
paragraph (c)(3)(iii) of this section);
(xvi) Quantity (in kilograms); and
(xvii) Customs value (US$).
(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)(i) For purposes of paragraph (c)(1)(xiii) of this section:
(A) The field in the license application requiring identification
of the country where the largest volume of primary aluminum used in the
manufacture of the product was smelted applies to the country where the
largest volume of new aluminum metal is produced from alumina (or
aluminum oxide) by the electrolytic Hall-H[eacute]roult process.
(B) Filers may state ``not applicable'' for this field if the
product contains only secondary aluminum and no primary aluminum.
Secondary aluminum is defined as aluminum metal that is produced from
recycled aluminum scrap through a re-melting process.
(C) For license applications up to December 23, 2021, filers may
state ``unknown'' for this field. Effective December 24, 2021, filers
may not state ``unknown'' for this field.
(ii) For purposes of paragraph (c)(1)(xiv) of this section:
(A) The field in the license application requiring identification
of the country where the second largest volume of primary aluminum used
in the manufacture of the product was smelted applies to the country
where the second largest volume of new aluminum metal is produced from
alumina (or aluminum oxide) by the electrolytic Hall-H[eacute]roult
process.
(B) Filers may state ``not applicable'' for this field if the
product does not contain a second largest volume of primary aluminum or
if the product contains only secondary aluminum and no primary
aluminum. Secondary aluminum is defined as aluminum metal that is
produced from recycled aluminum scrap through a re-melting process.
(C) For license applications up to December 23, 2021, filers may
state
[[Page 83816]]
``unknown'' for this field. Effective December 24, 2021, filers may not
state ``unknown'' for this field.
(iii) For purposes of paragraph (c)(1)(xv) of this section:
(A) The field in the license application requiring identification
of the country where the product was most recently cast applies to the
country where the aluminum (with or without alloying elements) was last
liquified by heat and cast into a solid state. The final solid state
can take the form of either a semi-finished product (slab, billets or
ingots) or a finished aluminum product.
(B) Filers may not state ``not applicable'' for this field.
(C) Filers may not state ``unknown'' for this field.
(4) 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. With the exception of the
licenses for FTZ admission (see Sec. 361.101(c)), 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 username and identify the license number and the volume
(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 $5,000,
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) Commerce will maintain an import monitoring system on the
public AIM system website that will report certain aggregate
information on imports of aluminum products obtained from the aluminum
licenses and, where available, from publicly available U.S. import
statistics. Aggregate data will be reported, as appropriate, on a
monthly basis by country of origin, country of smelt, country of last
cast, relevant aluminum product grouping, etc., 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. Provision
of aggregate data on the website may be revisited should concerns arise
over the possible release of proprietary data.
(b) Reported monthly import data will be refreshed each week, as
appropriate, 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. Additionally, outdated
license data will be replaced, where available, with publicly available
U.S. import statistics.
Sec. 361.105 [Reserved]
Sec. 361.106 Fees.
No fees will be charged for obtaining a username, 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 email ([email protected]) during regular business hours.
Should the system be inaccessible for an extended period of time,
Commerce would advise CBP 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 CBP.
[FR Doc. 2020-28166 Filed 12-22-20; 8:45 am]
BILLING CODE 3510-DS-P