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US DOC inspector general finds “improper influence” in Section 232 exemption process

Wednesday, 30 October 2019 23:51:55 (GMT+3)   |   San Diego
       

A memo released this week from the US Department of Commerce’s inspector general reported evidence that an “unofficial” appeals process exists in the Trump administration’s Section 232 tariff exemption process. The inspector general said the lack of transparency in the process “contributes to the appearance of improper influence in decision-making.”

Additionally, the memo said an exemption objector, which are typically US domestic steel producers, prompted a change in the internal review criteria. “We believe these issues give the perception that the Section 232 exclusion request review process is neither transparent nor objective,” the memo said.

According to the DOC, it has processed over 80,000 requests from US importers asking for an exemption to the steel and aluminum tariffs implemented in early 2018. However, a CNN report stated that importers have been complaining that the review process is “opaque.” The report said that to date, approximately three quarters of the requests have been approved while the remaining quarter have been denied.

Responding to the inspector general’s allegations, the DOC issued a statement saying “it takes this alert seriously and looks forward to working with the Office of Inspector General to gain additional information about the underpinnings of their findings.”

The DOC said it has taken steps to safeguard the process, such as adding an online portal for requests and creating a more extensive rebuttal process. The DOC said it has plans to further improve transparency, but did not elaborate in the statement.


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