Time to read: 3 min
As global trade policies continue to shift, importers and manufacturers must stay informed and agile. A recent development impacting advanced manufacturing and prototyping is the implementation of Section 232 tariffs on aluminum and steel imports. At Fictiv, we’re dedicated to keeping you informed, helping you optimize your supply chain and maximize your bottom line.
What Is Section 232?
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)
Unlike previous tariffs, there are no exclusions under Section 232—which means even prototype shipments that previously qualified for Chapter 98 duty exemptions are now subject to this 25% tariff.
A Quick Recap of Recent Tariff Changes
Here’s a breakdown of recent tariff updates affecting importers and supply chain management with prototype shipments:
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.
March 4, 2025: Another 10% IEEPA tariff was added for all China shipments, but again, prototypes continued to be exempt under Chapter 98.
March 12, 2025: A new Section 232 tariff of 25% was implemented on all aluminum and steel shipments globally, with no exclusions—meaning shipments of prototypes are now subject to duties
What This Means for You
If you are importing aluminum or steel prototypes through Fictiv, this 25% duty now applies to your orders, regardless of whether 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.
There are two primary paths forward for your aluminum and steel orders:
1. Duties Quoted & Prepaid Through Fictiv
We may provide a quote that includes the additional 25% tariff, and Fictiv will prepay the duty on your behalf.
2. You Act as the Importer of Record
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.
Don’t Forget: Customs Bonds & Brokers
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’re using a Single Entry Bond or a Continuous Bond—depending on your shipment frequency and value.
If you’re unfamiliar with customs procedures, working with a customs broker can simplify the process and help you avoid compliance issues or delays.
Fictiv’s Commitment to You
We understand these changes can create unexpected costs and confusion.
We’re here to help you navigate this new landscape with transparency and support. Please don’t 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.
Stay Informed. Stay Agile.
Tariffs evolve quickly, and staying ahead of the curve is critical. At Fictiv, we’re monitoring these changes closely and will continue to update you as new policies arise.
Let’s work together to minimize disruption and keep your supply chain running smoothly.
Tariff Impact Timeline – 2025
| Date | Tariff Type | Applies To | Prototype Duty Status | Tariff Rate |
|---|---|---|---|---|
| Feb 4, 2025 | IEEPA Tariff | Shipments from China | ✅ Chapter 98 Exemption Applies | 10% |
| Mar 4, 2025 | IEEPA Tariff | All shipments from China | ✅ Chapter 98 Exemption Applies | 10% |
| Mar 12, 2025 | Section 232 | All aluminum & steel shipments from all countries | ❌ No Exemptions (incl. Prototypes) | 25% |
🧾 What You Need to Know
- Prototype Orders: Now subject to 25% duty under Section 232 if they include aluminum or steel.
- No Chapter 98 Relief: Section 232 applies regardless of prototype status.
- Incoterms Matter:
- EXW / DAP → You’re the Importer of Record
- DDP (if offered) → Fictiv pays duties upfront
🛂 Importer Checklist
- ✅ Identify aluminum or steel in your prototype orders
- ✅ Understand your Incoterms
- ✅ Set up a Customs Bond (Single or Continuous) for high-value imports
- ✅ Consider working with a Customs Broker for compliance and duty payment
