October 26, 2021

Volume XI, Number 299

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October 26, 2021

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October 25, 2021

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Section 232 Investigation Initiated on Imports of Rare Earth Magnets

To determine whether imports of rare earth magnets (neodymium-iron-boron (NdFeB) permanent magnets) represent a threat to national security, the Biden administration recently initiated its first investigation of those imports pursuant to Section 232 of the Trade Expansion Act of 1962, the little-used provision from the Trade Expansion Act of 1962. A positive finding could result in the implementation of additional tariffs on rare earth magnets, such as the additional tariffs imposed on aluminum and steel products by the Trump administration.

Rare earth magnets are essential components of critical infrastructure, including electric vehicles and wind turbines, and national security systems, such as fighter aircraft and missile guidance systems, making the potential consequences of the investigation wide-ranging.

On Sep. 27, 2021, the Department of Commerce released a Federal Register Notice inviting interested parties to submit comments pertinent to this investigation. Comments should address the following:

  • Quantity of or other circumstances related to the importation of rare earth magnets;

  • Domestic production and productive capacity needed for rare earth magnets to meet projected national defense requirements;

  • Existing and anticipated availability of human resources, products, raw materials, production equipment, and facilities to produce rare earth magnets;

  • Growth requirements of the rare earth magnets industry to meet national defense requirements and/or requirements for supplies and services necessary to assure such growth including investment, exploration, and development;

  • The impact of foreign competition on the economic welfare of the domestic rare earth magnets industry;

  • The displacement of any domestic rare earth magnets production causing substantial unemployment, decrease in the revenues of government, loss of investment or specialized skills and productive capacity, or other serious effects;

  • Relevant factors that are causing or will cause a weakening of our national economy; and

  • Any other relevant factors, including the use and importance of rare earth magnets in critical infrastructure sectors identified in Presidential Policy Directive 21 (Feb. 12, 2013).

The deadline to submit comments is Nov. 12, 2021.

©2021 Greenberg Traurig, LLP. All rights reserved. National Law Review, Volume XI, Number 286
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About this Author

Laura Siegel Rabinowitz Corporate Trade Attorney Greenberg Traurig Law Firm
Shareholder

Laura Siegel Rabinowitz counsels domestic and multinational businesses on complex supply chain issues and other complicated challenges associated with trade, advising on mitigation of duty exposure and compliance. Laura has deep experience handling international trade projects for clients, including multinational importers, exporters, manufacturers, retailers, customs brokers, and freight forwarders.

Laura advises clients on mitigating tariffs on Chinese-made products and steel and aluminum and helps clients navigate the maze of regulations,...

212-801-9201
Donald Stein, Greenberg Traurig Law Firm, International Trade and Healthcare Litigation Attorney
Shareholder

Donald S. Stein focuses his practice on federal regulatory issues, and in particular U.S. Customs law, trade remedies and trade policy issues. From dealing with imports and the myriad of laws enforced by the U.S. Bureau of Customs and Border Protection ("CBP"), he has also developed experience in practicing before other federal regulatory agencies, including the U.S. Food and Drug Administration, the U.S. Federal Trade Commission, and the U.S. Fish and Wildlife Service. He is also experienced in working with the U.S. International Trade Commission, the U.S. Department of...

202-530-8502
Stephanie Vélez International Trade Attorney Greenberg Traurig Washington DC
Assistant Director

Stephanie Vélez focuses her practice on antidumping, countervailing, and safeguard investigations and the application of WTO rules. She has advised and represented companies in trade remedies investigations in the United States and Latin American countries including Colombia and Mexico. Stephanie represents clients in a variety of industries, including transportation, chemicals, textiles, energy, technology, steel, tires, agriculture, beverages, and metallurgy.

202-530-8524
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