UPDATE > Turkey’s GSP Eligibility Terminated and Steel Tariffs Reduced to 25%

Posted on May 17

Turkey’s GSP Eligibility Terminated

In accordance with the May 16 Presidential Proclamation, effective May 17, 2019, the Republic of Turkey’s designation as a beneficiary developing country has been terminated.
With this move, exports from Turkey will no longer be eligible for the Generalized System of Preferences (GSP).
The release also states the exemption for Turkey from application of the safeguard measures on crystalline silicon photo-voltaic (CSPV) cells and large residential washers will also be removed.

Turkey – Decrease in Duty on Imports of Steel under Section 232

In Customs Message CSMS 19-000257 issued on May 20, The White House announced a reduction in 232 duties from 50% to 25% for steel articles from Turkey.

On August 10, 2018, the President issued Proclamation 9772 (Adjusting Imports of Steel into the United States), that steel articles covered by the Section 232 remedy that were the product of the Republic of Turkey (Turkey) would be subject to an increased ad valorem duty rate of 50%. The increased rates of duty on steel articles that were the product of Turkey was effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 13, 2018.

On May 16, 2019, the President modified proclamation 9705 to remove the higher tariff on steel imports from Turkey imposed by Proclamation 9772, and to instead impose a 25 percent ad valorem tariff on steel imports from Turkey, commensurate with the tariff imposed on such articles by the Section 232 remedy imported from most other countries.

Accordingly, All imports of steel articles covered by Heading 9903.80.01, in sub-chapter III of Chapter 99 of the HTSUS, shall be subject to an additional 25 percent ad valorem rate of duty with respect to goods entered for consumption, or withdrawn from warehouse for consumption on or after 12:01 a.m. eastern daylight time on May 21, 2019, from all countries (including Turkey) except Argentina, Australia, Brazil, Canada, Mexico and South Korea.

If you have any questions, please contact your V. Alexander account team.

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Posted 05/17/2019

As announced by the National Customs Brokers and Forwarders today:

In accordance with the May 16 Presidential Proclamation, effective today, the Republic of Turkey’s designation as a beneficiary developing country has been terminated. With this move, exports from Turkey will no longer be eligible for the Generalized System of Preferences (GSP). The release also states the exemption for Turkey from application of the safeguard measures on crystalline silicon photovoltaic (CSPV) cells and large residential washers will also be removed.

In a separate Presidential Proclamation from the same day, tariffs on Turkish steel are being reduced from their current rate of 50 percent to the August 2018 rate of 25 percent. According to the proclamation, steel imports from Turkey declined by 48 percent under the higher tariff rate.

If you have any questions, please contact your V. Alexander account team.