A lawsuit recently filed in the United States Court of International Trade challenges the method which Customs is using to assess Section 232 “national security” tariffs on steel, aluminum and copper “derivative products”.

In Express Fasteners, Ltd v. United States, Court No. 26-00853, an Illinois-based importer of screws, bolts, nuts and similar fasteners is challenging Customs’ decision to impose the 50% ad valorem “national security” tariffs on the full value of its imported goods. The Presidential Proclamations imposing the tariffs, as well as guidance published on Customs’ website, indicates that for “derivative products”, the 50% tariff is to be imposed only on the cost of the steel, aluminum or copper contained in the article – not on “value added” items such as fabrication costs, overheads and profits.

But acting on the basis of an unpublished and unsigned December 3, 2025 memorandum issued by Customs’ Center of Excellence and Expertise (CEE) for base metals, import specialists nationwide have begun imposing the 50% tariff on the full value of the derivative products, especially where, in its condition as imported, the product is composed solely of steel, aluminum or copper. This is contrary to the language of the Presidential Proclamations and Customs’ published guidance.

The Express Fasteners complaint charges that Customs’ position constitutes a rule of general applicability that imposes obligations on the public, and cannot be enforced until and unless Customs issues it as a regulation, using the “notice and comment” procedures set out in the Administrative Procedure Act. It also charges that, to the extent the guidance published on Customs’ website constitutes “rulings”, Customs has modified or revoked those rulings without going through required procedures under Section 625(c) of the Tariff Act [19 U.S.C. §1625(c)]. It also notes that Customs’ CEEs are not delegated power to issue rulings.

In addition, the Complaint asserts that the CEE Memorandum and its implementation constitute the use of prohibited methods of Customs appraisement, and improperly seek collection of data without Office of Management and Budget authorization.

Please contact a Neville Peterson professional if you have questions concerning Customs’ assessment of Section 232 tariffs on steel, aluminum or copper “derivative products”.