85 FR 56162
Previously notified in N2USA1, N2USA4 and N3USA18
Part 360 - Steel Import Monitoring and Analysis System
The U.S. Department of Commerce (Commerce) modified its
regulations pertaining to the Steel Import Monitoring and Analysis (SIMA) system to require steel import license applicants to identify the country where the steel used in the manufacture of the imported steel product was melted and poured (the country of melt and pour); clarify how certain import data collected from the licenses will be aggregated and reported on the public SIMA monitor; expand the scope of steel products subject to the SIMA licensing requirement to an additional eight tariff lines (at the ten-digit level); extend the SIMA system indefinitely by eliminating the regulatory provision concerning the duration of the SIMA system; and codify eligibility for use of the low-value license for certain steel entries up to $5,000. In addition, Commerce made corresponding changes to the public SIMA monitor that did not require regulatory modifications and amended the steel import license application to include a new field for the country of melt and pour. Finally, Commerce modernized the SIMA system, including both the online license application platform and the public SIMA monitor.
On 11 September 2020, Commerce published a final rule (85 FR 56162) codifying changes to its steel import licensing system with an effective date of 13 October 2020. In the final rule, Commerce modified its regulations pertaining to the Steel Import Monitoring and Analysis (SIMA) licensing system to require steel import license applicants to identify the country where the steel used in the manufacture of the imported steel product was melted and poured (the country of melt and pour); expand the scope of steel products subject to the SIMA licensing requirement to an additional eight tariff lines (at the ten-digit level); extend the SIMA system indefinitely by eliminating the regulatory provision concerning the duration of the SIMA system; and codify eligibility for use of the low-value license for certain steel entries up to $5,000. Each change is further explained below.
First, to enhance U.S. Government monitoring and analysis of steel imports, Commerce amended the SIMA system to require identification of the country where the steel used in the manufacture of the imported steel product is melted and poured on the license form as an additional requirement to obtain an import license. This is also referred to as the "country of melt and pour." This field applies to the original location where the raw steel is:
(A) First produced in a steel-making furnace in a liquid state; and then;
(B) Poured into its first solid shape.
The first solid state can take the form of either a semi-finished product (slab, billets or ingots) or a finished steel mill product. The location of melt and pour is customarily identified on mill test certificates that are commonplace in steel production, generated at each stage of the production process, and maintained in the ordinary course of business. These reporting requirements do not apply to raw materials used in the steel manufacturing process (i.e., steel scrap; iron ore; pig iron; reduced, processed, or pelletized iron ore; or raw alloys).
Second, Commerce expanded the scope of steel products covered by the SIMA system so that it covers an additional eight HTS codes (at the ten-digit level). A list of the products covered by the modified SIMA system by Harmonized Tariff Schedule (HTS) codes can be obtained on the SIMA system website. Commerce amended its regulation § 360.101(a) to indicate that the products covered by the SIMA system are listed on the website and identified by HTS codes. The HTS codes, which are maintained by the U.S. International Trade Commission, may be updated periodically to reflect revisions to the codes. The list of currently covered HTS codes is available at: https://www.trade.gov/steel-products-hts-codes.
Third, Commerce extended the SIMA system indefinitely by eliminating the regulatory provision, § 360.105, that had made the SIMA system temporary. In the past, Commerce considered whether to extend the SIMA system every four years, which was done under the authority of the Census Act (13 U.S.C. 301(a) and 302). Although, under its last extension, the SIMA system was not set to expire until 21 March 2022, Commerce extended the system indefinitely given that the program is a well-established and important trade monitoring tool that has strong support from the trade community over its near-twenty-year history.
Fourth, Commerce amended its regulation § 360.103(f) to codify eligibility for use of a low-value license for certain steel entries from a $250 value to a $5,000 value, to align with current practice. The low-value license is an optional multiple-use license that allows a company to apply once for a steel import license and use it on multiple occasions for entries of covered steel products with a limited customs value. A re-usable low-value license number can be obtained with respect to an entry for which the portion covered by the steel
licensing requirement is less than the limited amount and may be used by those companies listed on the license. The low-value license is processed on the SIMA system website in the same manner as a typical steel license. Commerce's low-value license application form already provided that such a license may apply to covered steel products with a value of $5,000 or less per entry. Accordingly, Commerce made conforming edits to § 360.103(f) to reflect this requirement.
Finally, Commerce modernized the SIMA system, including both the online license application platform and the public SIMA monitor, with updated software. Registered users on the existing SIMA system must re-register on the new SIMA system to use the new online license application platform. In addition, Commerce made corresponding changes to the public SIMA monitor that did not require regulatory modifications.