April 13, 2020

U.S. Finalizes Currency Manipulation Rule, Proposes Monitoring Of Steel Products

U.S. businesses have until April 29, 2020 to comment on a proposed federal rule to enhance its existing Steel Import Monitoring and Analysis (SIMA) system to allow for the effective and timely monitoring of import surges of specific steel products which will aid in the prevention of transshipment of steel products. The U.S. Department of Commerce has proposed to:

  • Modify its regulations to require import license applicants to identify the country where the steel used in the manufacture of the imported steel product was melted and poured, and to release this data on an aggregate basis, as appropriate;
  • Harmonize the scope of SIMA’s licensing requirement with the scope of steel products subject to Section 232 tariffs;
  • Extend the SIMA system indefinitely by eliminating the regulatory provision concerning the duration of the SIMA system; and
  • Expand eligibility for use of the low-value license for certain steel entries.

The department said it will address the monitoring of aluminum imports in a separate rulemaking. Click here for more information and instructions about how to comment.

In related news: after publication last week of a final regulation, U.S. producers of steel, lumber, and host of other manufactured goods can now seek the U.S. Commerce Department assistance to target and impose duties on imports subsidized by countries through currency manipulation. Click here for MSCI’s previous reporting on this rule.