Last week the American Petroleum Institute (API) joined other trade associations in comments to the Department of Commerce on Section 232’s Interim Final Rule (IFR) to raise concerns over the ability of natural gas and oil companies to receive relief from steel tariffs and quotas.
“US natural gas and oil companies should be granted relief from the tariffs and quotas on imported steel that will harm US businesses, our economy and American consumers,” said Kyle Isakower, Vice President, Regulatory & Economic Policy. “Tariffs will raise the cost of imported steel by 25%, while quotas will stop US businesses from receiving steel for US energy projects around the country – harming the president’s agenda of continuing our energy renaissance, strengthening our infrastructure and creating US jobs.”
“Any disruption of our complex global supply chains of specialty quality steel – in the quantities we need for US energy projects – could negatively impact building energy infrastructure that benefits consumers, the US military and manufacturers,” said Isakower.
API’s comment letter urged the administration to revise the IFR in order to improve the process whereby companies will be granted relief from tariffs and quotas, as not to sever the supply chains of the oil and natural gas industry, which would ultimately impact US businesses, investments and consumers.
The letter requests a number of important and necessary revisions, including:
- The Final Rule should make clear that exclusions granted apply both retrospectively and prospectively, as not to have costly consequences or create confusion among US businesses.
- The Department of Commerce should grant relief for purchases made before tariffs were announced.
- The Department of Commerce should define and release metrics that will be used to determine whether US steel manufacturers have the capacity to meet demand, in order to provide greater clarity on how Commerce will make its determination regarding production in the US to supply companies in a sufficient and reasonably available amount.
- The Department of Commerce should grant categorical exclusions for products it determines are not available in the US.
- The Department of Commerce should defer to companies’ own quality standards and define and release metrics that will be used to determine whether US steel manufacturers have the capacity to meet demand, in order to provide greater clarity on how Commerce will make its determination regarding satisfactory quality steel being produced in the US.
Read the article online at: https://www.worldpipelines.com/business-news/21052018/api-concerned-over-the-ability-of-oil-and-gas-companies-to-receive-relief-from-steel-tariffs-and-quotas/