STEEL

1 Announcement of Actions on EU Imports Under Section 232 October 31, 2021 STEEL The United States will replace the existing 25 percent tariff on EU STEEL products under Section 2321 with a tariff-rate quota (TRQ) with a date of effectiveness of January 1, 2022. Under the TRQ arrangement, historically-based volumes of EU STEEL products will enter the market without the application of Section 232 tariffs as follows: 1. TRQ Amount: The aggregate annual import volume under the TRQ is set at MMT under 54 product categories and allocated on an EU member state basis in line with the 2015-2017 historical period.

2 A breakdown of the said 54 product categories is enclosed in Annex 1. 2. Derivative Products: Imports of derivative articles of STEEL , as referenced in Proclamation 9980,2 from the EU will not be subject to Section 232 duties. 3. Eligible products: In order to be eligible for duty-free treatment under the quota, STEEL imports must be melted and poured in the EU according to current3 requirements and rules implementing this arrangement. An importer shall provide relevant documentation substantiating compliance with requirements.

3 Failure to comply could result in remedies and/or penalties as provided for under law. 4. Exclusions: The United States will maintain its exclusions process, as implemented under Section 232 of the Trade Expansion Act of 1962, available for STEEL products imported from the EU, but will not count imports of excluded STEEL products from the EU against the TRQ. The United States will extend the application of exclusions granted for and utilized in fiscal year 2021 for STEEL products imported from the EU for a period of two calendar years without the need to reapply, , until 31 December These exclusions will be available for the exclusion holder and corresponding EU exporter or exporters.

4 No Section 232 duty will apply to these imports from the EU. 5. Tariff Rate: Section 232 STEEL products from the EU that are within-quota will enter free of any Section 232 duty while all Section 232 STEEL products entering above-quota will continue to be subject to a Section 232 duty of 25 percent, provided that they are not subject to an exclusion as per point 4 above. 1 Those STEEL articles are subject to Presidential Proclamation 9705 of March 8, 2018 ( ). 2 Presidential Proclamation 9980 of January 24, 2020 ( ) 3 As of October 30, 2021.

5 4 This corresponds to the volume of exclusions entered in the period October 1, 2020 to September 30, 2021. 2 6. Administration: The TRQ will be calculated for each year of the measure and administered on a quarterly basis. Any unused TRQ volume from the first quarter of the year, up to 4 percent of the allocated quota for that quarter, will roll over to the third quarter; any unused TRQ volume from the second quarter of the year, subject to the same limit, will roll over into the fourth quarter; and any unused TRQ volume from the third quarter, subject to the same limit, will roll over into the first quarter of the following year.

6 The TRQ will be allocated on a first-come, first-served basis for each product category from each EU member state. The United States will provide on a public website updated information on the utilization of the quarterly quota for each product category, including information on the transferred unused TRQ volumes from one quarter to another. 7. Adjustment: The United States will conduct annual reviews of the TRQ to calculate the level of STEEL demand (apparent consumption) in the previous year when such data becomes available from the World STEEL Association.

7 For each 6 percent that this calculated level is above or below STEEL demand in 2021, the TRQ volume would increase or decrease, respectively, by 3 percent relative to the level outlined in point 1 in the subsequent twelve-month period. Should the calculated level of STEEL demand not be at least 6 percent above or below the fiscal year 2021 level, then the TRQ volume in the subsequent year would be at the level outlined in point 1 above. 8. Review: Starting no later than April 1, 2022, the United States will evaluate utilization and administration of the TRQ every three months and, at the request of the EU, enter into consultations to address any substantial under-use of the TRQ.

8 ALUMINUM The United States will replace the existing 10 percent tariff on EU aluminum products under Section 2325 with a tariff-rate quota (TRQ) with a date of effectiveness of January 1, 2022. Under the TRQ arrangement, historically-based volumes of EU aluminum products will enter the market without the application of Section 232 tariffs as follows: 1. TRQ Amount: The aggregate annual import volume under the TRQ is set at 18 thousand metric tons (TMT) for unwrought aluminum under two product categories, and 366 TMT for semi-finished (wrought) aluminum under 14 product categories.

9 The import volumes will be allocated on an EU member state basis in line with the 2018-19 historical period, with the exception of foil (7607), where 2021 annualized data will be utilized. A breakdown of the said product categories is enclosed in Annex 2. 2. Derivative Products: Imports of derivative articles of aluminum, as referenced in Proclamation 9980,6 from the EU will not be subject to Section 232 duties. 5 Those aluminum articles are subject to Presidential Proclamation 9704 of March 8, 2018 ( ).

10 6 Presidential Proclamation 9980 of January 24, 2020 ( ). 3 3. Entry Documentation: An importer shall provide a Certificate of Analysis for each aluminum product entered into the United States, as required by current7 law and rules implementing this arrangement. Failure to provide this documentation could result in remedies and/or penalties as provided for under law. 4. Exclusions: The United States will maintain its exclusions process, as implemented under Section 232 of the Trade Expansion Act of 1962, available for aluminum products imported from the EU.