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1 1 (March 29, 2023)

handle is hein.crs/govelbk0001 and id is 1 raw text is: Congressional Research Service nforming the legislitive diebate since 1914 0 March 29, 2023 Import Monitoring Systems: Steel and Aluminum Background Over the years, several domestic manufacturing industries have sought insulation from import competition-two of particular note include steel and aluminum. Both industries have formally established import monitoring systems- regulatory programs administered by a federal agency that monitor for certain imported goods. In the case of the steel and aluminum import monitoring systems, both operate under the authority of select provisions of the Census Act of 1930, as amended (13 U.S.C. §§301(a) and 302). These systems monitor for imports of certain steel and aluminum products to help anticipate import surges and changes in price, as well as any potential impact on the domestic industries. The steel import monitoring system has been in effect for over two decades, while the aluminum equivalent was brought online in mid-2021. The Department of Commerce, International Trade Administration (ITA), manages both systems. Both of these import monitoring systems have the potential to serve as a supplementary tool to existing trade measures intended to help domestic producers remain competitive relative to foreign producers. Steel Import Monitoring System The steel import monitoring system was first established concurrently with the implementation of safeguard actions-import measures designed to provide temporary relief for a U.S. industry through the use of tariffs and/or quotas-on certain steel products under select provisions of the Trade Act of 1974 (19 U.S.C. §§2251-2253). These temporary safeguard measures went into effect in March 2002, and the steel import monitoring system was activated in February 2003. The Steel Import Monitoring and Analysis (SIMA) system-the formal name of the program-became codified under ITA in March 2005 and has been in effect since. The intent of the SIMA system is to monitor for import surges through the implementation of an electronic-based import licensing system. Such a system could provide an early warning for import surges and price fluctuations of certain steel products entering the United States. U.S. Customs and Border Protection requires an ITA-issued import license for imports of certain steel products prior to their entry into the U.S. customs territory. In addition to the licensing system, ITA maintains a web-based monitoring tool that provides information on the trade of downstream steel products and trends of U.S. and global steel trade. Data obtained from the import licenses are aggregated and incorporated into a website-the public SIMA monitor- where the public can view and visualize data on a weekly basis. Such information can provide up to eight weeks of import data in advance of the release of official import statistics from the U.S. Census Bureau. On balance, the SIMA system comprises the import licensing system and the public monitor. In October 2020, the SIMA system underwent an extensive modernization, in which the licensing system and public monitor were updated. The update occurred as a result of joint understandings announced in May 2019 between the United States, Canada, and Mexico with respect to tariffs imposed on certain steel and aluminum imports under Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. § 1862). Since May 2019, Canada and Mexico have been exempt from such tariffs; several other countries face modified restrictions, such as tariff-rate quotas in lieu of tariffs. One update of the SIMA system pertained to the license application, which now requires applicants disclose additional supply chain information, specifically the country where the steel used in the manufacture of the imported steel product was melted and poured (commonly referred to as the country of melt and pour). According to ITA, melt and pour refers to the original location where the crude steel was produced in a furnace in its liquid state and then processed into its first solid shape, being a semifinished product (e.g., billets, blooms, or slabs) or a finished mill product. For example, if the United States imports certain steel products from a Mexican mill, the country of origin may be Mexico, where the product was manufactured; however, where the products were melted and poured could include other countries, such as Brazil or Russia, among others. SIMA's melt and pour dashboard provides data breakouts by country of origin, as well as country of melt and pour, expressed in quantity and value. This information provides increased visibility on where steel products are primarily sourced. Information that importers or customs brokers must provide in the import license includes the country of exportation, expected date of export, expected date of import, expected port of entry, and the date of application, among others. U.S. importers have up to 60 days prior to the expected date of entry to file an application, with the license being valid for 75 days. ITA recommends importers apply for licenses as far ahead of entry as possible to avoid delays. Doing so could provide increased visibility from a regulatory perspective to monitor for import surges. Aluminum Import Monitoring System The Aluminum Import Monitoring and Analysis (AIM) system has been in effect since June 2021 and is modeled after the SIMA system. Like its steel equivalent, the AIM system uses electronic-based licensing for certain imported aluminum products and contributes to a website that details

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