Letter to Acting Commissioner Morgan: Concerns Regarding Tariff Relief for Importers Who Break Trading Rules


Dear Acting Commissioner Morgan:

On behalf of the American Primary Aluminum Association (APAA), I am writing to express our concerns and urge U.S. Customs and Border Patrol (CBP) to oppose efforts to grant relief to importers in the form of duty payment extensions and other flexibility mechanisms to defer or avoid payments. As of today, we understand that CBP will approve on a case by case basis additional days for payment of estimated duties, taxes and fees due to the coronavirus. When it comes to the Section 232 program, such actions will allow importers to game the system, result in import surges and pose a clear and present danger to U.S. economic and national security interests.

On behalf of America’s primary aluminum producers, we urge CPB not to implement policies that will undermine the Section 232 tariff program and harm American aluminum workers. We ask CBP to continue to fully implement President Trump’s Presidential Proclamation imposed under Section 232 of the Trade Expansion Act of 1962 on certain articles of aluminum and steel.

The APAA understands and recognizes that the coronavirus public health crisis is resulting in significant economic disruption and Congress is taking steps to protect vulnerable industries and unemployed workers. When it comes to American primary aluminum industry, any relief for importers will hurt domestic primary aluminum production and potentially threaten thousands of American aluminum jobs. Any “tax holiday” or relief will decimate the American aluminum industry which these tariffs are designed to save and support.

The Section 232 aluminum tariff program has been, and will continue to be, a lifeline for the domestic aluminum industry against foreign producers that do not operate on market principles. The minimal tariff imposed on foreign imports provides important relief for domestic production, and as a result of the current fragility of global supply chains, the United States cannot afford to allow important industries to be undermined by a government sanctioned 90-day tariff relief program. USTR has already put in place a process to deal with emergency regulations that have direct bearing on our nation’s ability to respond to the coronavirus crisis

We urge you to resist against implementing policies that undermine the Section 232 program, which is critically important for U.S. national security purposes and has allowed our America’s aluminum industry to start rebuilding.

Any tariff relief will have devastating consequences for the American industries these tariffs were designed to save and support. We strongly urge CBP not to consider the 90-day tariff relief and stand strong with America’s primary aluminum industry and American workers.

Sincerely,

Mark Duffy
Chief Executive Officer
American Primary Aluminum Association

Letter to Vice President Pence: Declare the Primary Aluminum Industry an Essential Industry

Dear Mr. Vice President:


On behalf of the American Primary Aluminum Association (APAA), I am writing to urge the Trump Administration to declare America’s primary aluminum industry and manufacturing sector as “essential” when drafting and enforcing shelter-in-place orders and other executive action in response to the COVID-19 national emergency.

We applaud President Trump and his team for invoking the Defense Production Act as part of the coronavirus response and taking strong leadership as we work together to keep all Americans safe. APAA is very supportive of the efforts already underway by the Trump Administration, and we understand the importance of mitigating further public health and economic risk from the COVID-19 national emergency.

Recently, businesses across the U.S. have been ordered to suspend operations unless they are deemed a critical industry, with the Trump administration specifically exempting industrial manufacturing as “essential.” America’s primary aluminum industry and our workers are an “essential” industry for U.S. national security purposes – as the Administration has recognized in its Aluminum 232 report – and must be allowed to continue production despite the COVID-19 national emergency. For instance, in Kentucky, where a public health emergency has been declared, Century Aluminum operates America’s only smelter capable of producing military-grade aluminum needed for national security purposes.

Primary aluminum manufacturing U.S. is “essential” to America’s national security infrastructure and the United States’ ability to produce aluminum is critical to maintain in these uncertain times.  In fact, aluminum is a key component in many medical devices that are manufactured in the United States. As Commerce Secretary Ross determined in 2018, aluminum is important to U.S. national security well beyond obvious defense applications and is critical to maintaining U.S. infrastructure such as our national power grids.  Unlike other manufacturing facilities, primary aluminum production cannot be simply turned off without incurring debilitating capital costs – a smelter must operate 24 hours a day, 365 days a year and once curtailed smelters rarely restart. During its COVID crisis, the Chinese maintained 100% of their primary aluminum production and the United States should do the same. 

With that in mind, it’s imperative that aluminum manufacturing facilities and workers be exempt from potential mandatory quarantines or shelter in place requirements as set by local, state, and the federal government.

We strongly support the Trump Administration collective efforts to combat COVID-19 but urge the designation of America’s primary aluminum industry and their workers as “essential” to the nation’s COVID-19 national emergency. We also respectfully ask that you encourage state and local governments to make the same designation.

Sincerely,

Mark Duffy
Chief Executive Officer
American Primary Aluminum Association