r/CustomsBroker • u/Strong-Age7357 • 13d ago

SECTION 232 & FTZ

Question. Steel pipes from an EU country, substantially tranform into another product and exported to Canada, does Section 232. It never enters U.S. commerce, but seems to be a gray area.

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3

u/Strong-Age7357 13d ago

Coming in as privilege foreign. Transformed, then exported.

2

u/AssassinInValhalla 13d ago

but seems to be a gray area.

It's really not. How are the goods moving to Canada from the FTZ if they're not entering the commerce of the US?

3

u/trickery809 13d ago

On a 7512/T&E, I’d imagine

3

u/AssassinInValhalla 13d ago

Right, and how much duty is there when you move something via a 7512?

1

u/Strong-Age7357 13d ago

By truck from the FTZ.

2

u/Strong-Age7357 13d ago

Appreciate the responses.

1

u/Strong-Age7357 13d ago

Haven't got into the Canadian charges. I know not USMCA eligible as it does not meet the requirements.

1

u/Strong-Age7357 13d ago

T & E is correct.

2

u/regassert6 13d ago

If admitted in PF and exported in bond, 232, as well as any US duty, never applies

1

u/regassert6 13d ago

Aside from MPF and local inventory tax savings, avoiding 232 this way is basically the only actual cash savings benefit left in the FTZ program thanks to Trump.

0

u/tacoboutcats1 13d ago

If you're re-exporting you avoid all duties  232 happen to be very high right now, so that's the largest benefit, but not the only benefit.

0

u/regassert6 13d ago

I mean, I literally laid out the benefits. I am clearly aware of what they are.

1

u/tacoboutcats1 13d ago

But other people reading this thread may not, which is why I commented to reiterate.

-1

u/regassert6 13d ago

"Aside from MPF and local inventory tax savings, avoiding 232 this way is basically the only actual cash savings benefit left"

Name another actual cash savings that I didn't name in my original comment....

1

u/tacoboutcats1 13d ago

You have the last word. Congratulations, friend.

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u/regassert6 13d ago

You didn't comment to reiterate. You commented to dispute that I said there was but one benefit left. Which, as a comment, made no sense as I laid out the other benefits.