Section 232 Investigation Initiated on Imports of Rare Earth Magnets

To find out whether or not imports of uncommon earth magnets (neodymium-iron-boron (NdFeB) everlasting magnets) signify a menace to nationwide safety, the Biden administration not too long ago initiated its first investigation of these imports pursuant to Section 232 of the Commerce Enlargement Act of 1962, the little-used provision from the Commerce Enlargement Act of 1962. A constructive discovering might outcome within the implementation of extra tariffs on uncommon earth magnets, corresponding to the extra tariffs imposed on aluminum and metal merchandise by the Trump administration.

Rare earth magnets are important parts of essential infrastructure, together with electrical automobiles and wind generators, and nationwide safety methods, corresponding to fighter plane and missile steerage methods, making the potential penalties of the investigation wide-ranging.

On Sep. 27, 2021, the Division of Commerce launched a Federal Register Notice inviting events to submit feedback pertinent to this investigation. Feedback ought to handle the next:

  • Amount of or different circumstances associated to the importation of uncommon earth magnets;

  • Home manufacturing and productive capability wanted for uncommon earth magnets to fulfill projected nationwide protection necessities;

  • Current and anticipated availability of human sources, merchandise, uncooked supplies, manufacturing tools, and amenities to supply uncommon earth magnets;

  • Development necessities of the uncommon earth magnets business to fulfill nationwide protection necessities and/or necessities for provides and providers essential to guarantee such progress together with funding, exploration, and growth;

  • The affect of overseas competitors on the financial welfare of the home uncommon earth magnets business;

  • The displacement of any home uncommon earth magnets manufacturing inflicting substantial unemployment, lower within the revenues of authorities, loss of funding or specialised expertise and productive capability, or different critical results;

  • Related elements which can be inflicting or will trigger a weakening of our nationwide economic system; and

  • Every other related elements, together with the use and significance of uncommon earth magnets in essential infrastructure sectors recognized in Presidential Coverage Directive 21 (Feb. 12, 2013).

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

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