Customs has issued CSMS #48923327 (July 29, 2021), which clarifies that effective July 27, 2021, steel or aluminum import licenses will no longer be allowed on any Entry Type 06 Foreign Trade Zone (FTZ) consumption entry. A steel/aluminum import license must only be submitted to CBP on an e-214 at the time of FTZ admission.

Our law firm was directly engaged in convincing Customs Headquarters and the Commerce Department that requiring additional licenses to be acquired for multiple releases from the original license reported at FTZ admission would cause significant license overreporting for the 06 entry, contrary to the legal intent.

Some FTZ software providers, brokers, and consultants were directing FTZs to file licenses at both e-214 submission and Customs entry submission. This is directly in conflict with the applicable Commerce Regulations at 19 C.F.R. § 360.101(c) and 361.101(c), which requires steel and aluminum license at FTZ admission, not FTZ consumption entry. Further, the Federal Register notice implementing the steel and aluminum license requirements make clear the steel/aluminum license requirement is triggered only at FTZ admission. 85 Fed. Reg. 83804 (Jan. 25, 2021), 86 Fed. Reg. 27513 (May 21,2021), 70 Fed. Reg. 72373 (Dec. 5, 2005), 70 Fed. Reg. 12133 (March 11, 2005), see our July Briefings newsletter