{"id":20377,"date":"2025-07-25T05:34:39","date_gmt":"2025-07-25T12:34:39","guid":{"rendered":"https:\/\/www.fictiv.com\/?post_type=cpt_help&#038;p=20377"},"modified":"2025-08-18T23:10:58","modified_gmt":"2025-08-19T06:10:58","slug":"understanding-section-232-tariffs","status":"publish","type":"cpt_help","link":"https:\/\/www.fictiv.com\/help\/production-and-fulfillment\/understanding-section-232-tariffs","title":{"rendered":"Understanding Section 232 Tariffs"},"content":{"rendered":"\n<p>As global trade policies continue to shift, importers and manufacturers must stay informed and agile. At Fictiv, we\u2019re dedicated to keeping you informed, helping you optimize your supply chain and maximize your bottom line.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-section-232\"><strong>What Is Section 232?<\/strong><\/h2>\n\n\n\n<p>Section 232 of the Trade Expansion Act of 1962 allows the U.S. Government to impose tariffs on imports that are deemed a threat to national security. On March 12, 2025, the U.S. Government enacted a 25% tariff on all aluminum and steel shipments from all countries under this provision, even those with trade agreements. At this time, prototypes made with other materials are not subject to tariffs (due to Chapter 98 duty exemptions)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-a-quick-recap-of-recent-tariff-changes\"><strong>A Quick Recap of Recent Tariff Changes<\/strong><\/h2>\n\n\n\n<p>Here\u2019s a breakdown of recent tariff updates affecting importers and supply chain management with prototype shipments:<\/p>\n\n\n\n<p><strong>July 7, 2025: Prototypes of all denominations are <\/strong><a href=\"https:\/\/www.cbp.gov\/trade\/programs-administration\/entry-summary\/232-tariffs-aluminum-and-steel-faqs\"><strong>no longer subject to tariffs<\/strong><\/a><strong>, including those containing aluminum or steel.&nbsp;<\/strong><\/p>\n\n\n\n<p>March 12, 2025: A new Section 232 tariff of 25% was implemented on all aluminum and steel shipments globally, with no exclusions\u2014meaning <strong>shipments of prototypes are now subject to duties<\/strong><\/p>\n\n\n\n<p>March 4, 2025: Another 10% IEEPA tariff was added for all China shipments, but again, prototypes continued to be exempt under Chapter 98.<\/p>\n\n\n\n<p>February 4, 2025: A 10% tariff under the International Emergency Economic Powers Act (IEEPA) was imposed on shipments from China. However, Chapter 98 prototype provisions remained in effect, keeping prototypes duty-free.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-this-means-for-you\"><strong>What This Means for You<\/strong><\/h2>\n\n\n\n<p>If you are importing aluminum or steel prototypes through Fictiv, this 25% duty now applies to your orders unless they fall under the Chapter 98 prototype provision. As the Importer of Record (IOR), you are responsible for ensuring duties and compliance are properly managed.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-there-are-two-primary-paths-forward-for-your-commercial-aluminum-and-steel-orders\"><strong>There are two primary paths forward for your commercial aluminum and steel orders:<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-duties-quoted-amp-prepaid-through-fictiv-we-may-provide-a-quote-that-includes-the-additional-25-tariff-and-fictiv-will-prepay-the-duty-on-your-behalf\"><strong>1. Duties Quoted &amp; Prepaid Through Fictiv<\/strong><br>We may provide a quote that includes the additional 25% tariff, and Fictiv will prepay the duty on your behalf.<\/h3>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-you-act-as-the-importer-of-record\"><strong>2. You Act as the Importer of Record<\/strong><\/h3>\n\n\n\n<p>Under Incoterms like EXW (Ex Works) or DAP (Delivered at Place), you, the customer, are responsible for paying the duty at the time of import.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-don-t-forget-customs-bonds-amp-brokers\"><strong>Don\u2019t Forget: Customs Bonds &amp; Brokers<\/strong><\/h3>\n\n\n\n<p>For high-value imports over $2,500, you may need to secure a Customs Bond, which acts as a financial guarantee to the U.S. Customs and Border Protection (CBP). This bond covers duties, taxes, and fees, and may be required whether you&#8217;re using a Single Entry Bond or a Continuous Bond\u2014depending on your shipment frequency and value.<\/p>\n\n\n\n<p>If you&#8217;re unfamiliar with customs procedures, working with a customs broker can simplify the process and help you avoid compliance issues or delays.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-fictiv-s-commitment-to-you\"><strong>Fictiv\u2019s Commitment to You<\/strong><\/h3>\n\n\n\n<p>We understand these changes can create unexpected costs and confusion.&nbsp;<\/p>\n\n\n\n<p>We&#8217;re here to help you navigate this new landscape with transparency and support. Please don\u2019t hesitate to reach out to your Fictiv account representative or support team with any questions or concerns about how Section 232 tariffs may affect your orders or should you wish to receive a quote that includes prepaid duty.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-stay-informed-stay-agile\"><strong>Stay Informed. Stay Agile.<\/strong><\/h3>\n\n\n\n<p>Tariffs evolve quickly, and staying ahead of the curve is critical. At Fictiv, we\u2019re monitoring these changes closely and will continue to update you as new policies arise.<\/p>\n\n\n\n<p>Let\u2019s work together to minimize disruption and keep your supply chain running smoothly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2025-tariff-impact-timeline\">2025 <strong>Tariff Impact Timeline<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Date<\/strong><\/th><th><strong>Tariff Type<\/strong><\/th><th><strong>Applies To<\/strong><\/th><th><strong>Prototype Duty Status<\/strong><\/th><th><strong>Tariff Rate<\/strong><\/th><\/tr><\/thead><tbody><tr><td>Feb 4, 2025<\/td><td>IEEPA Tariff<\/td><td>Shipments from China<\/td><td>\u2705 <strong>Chapter 98 Exemption Applies<\/strong><\/td><td>10%<\/td><\/tr><tr><td>Mar 4, 2025<\/td><td>IEEPA Tariff<\/td><td>All shipments from China<\/td><td>\u2705 <strong>Chapter 98 Exemption Applies<\/strong><\/td><td>10%<\/td><\/tr><tr><td>Mar 12, 2025<\/td><td><strong>Section 232<\/strong><\/td><td><strong>All aluminum &amp; steel shipments from all countries<\/strong><\/td><td>\u274c <strong>No Exemptions (incl. Prototypes)<\/strong><\/td><td><strong>25%<\/strong><\/td><\/tr><tr><td>July 7, 2025<\/td><td>Section 232<\/td><td>All aluminum &amp; steel shipments from all countries<\/td><td>\u2705 Chapter 98 Exemption Reinstated<\/td><td>25%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-you-need-to-know\"><strong>\ud83e\uddfe What You Need to Know<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Prototype Orders<\/strong>: As of July 7, 2025, prototypes of all denominations are no longer subject to <strong>25% duty<\/strong> under Section 232.<\/li>\n\n\n\n<li><strong>Chapter 98 Relief Reinstated<\/strong>: Section 232 no longer applies to prototypes, only to commercial orders.<\/li>\n\n\n\n<li><strong>Incoterms Matter<\/strong>:\n<ul class=\"wp-block-list\">\n<li><strong>EXW \/ DAP<\/strong> \u2192 You\u2019re the <strong>Importer of Record<\/strong><\/li>\n\n\n\n<li><strong>DDP<\/strong> (if eligible) \u2192 <strong>Fictiv pays duties<\/strong> upfront<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-importer-checklist\"><strong>Importer Checklist<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Identify aluminum or steel in your commercial orders<\/li>\n\n\n\n<li>Understand your Incoterms<\/li>\n\n\n\n<li>Set up a <strong>Customs Bond<\/strong> (Single or Continuous) for high-value imports<\/li>\n\n\n\n<li>Consider working with a <strong>Customs Broker<\/strong> for compliance and duty payment<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Learn how Section 232 tariffs may impact your supply chain and what steps you can take to stay prepared. <\/p>\n","protected":false},"author":135,"featured_media":0,"parent":0,"menu_order":0,"template":"","categories":[294],"coauthors":[148],"class_list":["post-20377","cpt_help","type-cpt_help","status-publish","hentry","category-production-and-fulfillment"],"aioseo_notices":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.2 (Yoast SEO v24.2) - 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