Research · allocation order
The tungsten scrap order’s exceptions, and its November 4 deadline
This page sets out the rule that has kept black mass and tungsten scrap in the United States since 2026-08-27. It covers what the rule requires, how BIS takes requests for exceptions, and the dates that matter.
It describes the rule and does not say whether the rule applies to any firm or shipment, which is a question for counsel.
The rule at a glance
| Instrument | Temporary final rule, Federal Register document 2026-16078 |
| Title | DPAS Directive Allocation Order and Additional Requirements for Recoverable Critical Minerals and Materials |
| Authority | Section 101 of the Defense Production Act of 1950; the Defense Priorities and Allocations System, 15 CFR part 700; a Presidential Determination dated 2026-07-30 |
| Published | 2026-08-06 |
| Effective | 2026-08-27 |
| Runs through | 2027-08-27 |
| Comments close | 2026-11-04, on docket BIS-2026-0364 |
What it requires
“Therefore, starting August 27, 2026, ‘black mass’ (Schedule B codes 8549.13.00.00, 8549.14.00.00, and 8549.19.00.00) and tungsten waste and scrap (Schedule B code 8101.97.00.00) must remain physically located within the United States, unless otherwise authorized by BIS.”
The rule also states this as a sales requirement. A US person selling these materials must allocate 100 percent of monthly sales to US persons, unless BIS grants an adjustment or exception in advance.
Two points are easy to miss: the rule sets a location requirement as well as a sales requirement, and it names four Schedule B lines and no others. A tungsten code it does not name has its own page.
How it defines black mass
“‘Black mass’ means any shredded lithium-ion battery scrap that contains cathode material (which may include lithium, cobalt, nickel and manganese), anode material (graphite, silicon) or other residual battery cell materials.”
The rule gives no definition of tungsten waste and scrap. It identifies that material only by its Schedule B line.
How to ask for an exception
“Requests for adjustments and exceptions must be made in writing and provided to BIS via email at
DPASAllocations@bis.doc.gov. BIS intends to respond to requests for adjustment of or exceptions tocompliance within fourteen (14) days, but in any event, responses to requests will be consistent with section 700.80.”
BIS may grant relief to one company or to everyone, and may give interim relief while a request is pending.
Eight filers on the earlier Section 232 docket, BIS-2025-0025, asked for a process like this before it existed: NTMA and the Precision Metalforming Association, the Industrial Fasteners Institute, Plansee USA, Umicore USA, Ucore, Heraeus, Johnson Matthey, and Stanley Black & Decker. None of them was writing about this rule. The Industrial Fasteners Institute gave the subject a section of its own, headed:
“All Section 232 Orders Need a Workable Exclusion Process”
The clause that lets the order grow
“At any point in time, and to the extent consistent with United States policy, BIS may determine that additional materials identified in DPA Determination on Recoverable CMMs be subject to an allocation order.”
The clause gives BIS the power to add materials. The rule announces no plan to use it.
The comment window
Comments on the rule close on 2026-11-04, on docket BIS-2026-0364.
On 2026-10-11 the docket held no posted comments, and the Federal Register showed no document that amends the rule.
This page is the author's own analysis. It is not investment, financial or legal advice.