Many HTS Chapter 99 Changes, Etc. in Recently Enacted Trade Bill Take Effect Jan. 4th
According to a short message posted by U.S. Customs and Border Protection (CBP) to the "What's New" section of its Web site, a number of Harmonized Tariff Schedule Chapter 99 tariff changes contained in the recently enacted trade provisions of the Tax Relief and Health Care Act of 2006 (P.L. 109-432) take effect 15 days after the bill's December 20, 2006 date of enactment, which CBP states is January 4, 20071.
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(Note that other HTS changes, including those in HTS Chapter 99, may take effect on a date other than January 4, 2007, as specified in P.L. 109-432.)
Year-End Blanket ID Procedures Not Expected to be Extended to Jan. 1-3, 2007
CBP sources state that the recently announced year-end Blanket Immediate Delivery procedures for merchandise released from December 15 through December 31, 2006, which is provided by CBP to filers who want to take advantage of any reduced duty rates or special programs taking effect on or after January 1, 2007, are not expected to be extended to releases during the January 1 - 3, 2007 period.
(CBP annually provides for Year-End Blanket ID privileges. See both ITT's Online Archives or 12/15/06 news 06121505and Adm: 06-1222 (dated 12/21/06) for details and exceptions (exceptions include absolute quota and I.T. merchandise) regarding 2006 year-end procedures for obtaining lower 2007 duty rates.)
Filers May Need to Avoid January 1-3 Releases or Take Other Steps, In Order to Take Advantage of Any Lower Duty Rates Taking Effect on January 4, 2007
According to trade sources, filers may need to avoid any January 1-3 releases or take other steps, in order to take advantage of any lower duty rate, etc., taking effect on or after January 4, 2007.
(HTS Chapter 99 changes include new Chapter 99 provisions as well as extensions of provisions expiring on December 31, 2006.)
CBP to Provide a Second Blanket Authority 10 Days Before the WCO Changes Take Effect
As stated in Administrative Message 06-1222 and confirmed by CBP sources, CBP will provide a second blanket authority 10 days prior to the effective date of the 2007 changes resulting from World Customs Organization recommended HTS changes and other HTS changes.
1P.L. 109-432 states that, except as otherwise provided, the changes apply to goods entered or withdrawn from warehouse for consumption on or after the date that is 15 days after the date of enactment.
CBP-provided H.R. 6111 (PL 109-432) available at http://www.cbp.gov/linkhandler/cgov/import/cargo_summary/misc_trade_tech_corrections_act/hr_6111.ctt/hr_6111.pdf
CBP Whats New (subject to change), available at http://www.cbp.gov/xp/cgov/import/whats_new.xml
CBP Adm: 06-1222 (dated 12/21/06) available at http://www.brokerpower.com/cgi-bin/adminsearch/admmsg.view.pl?article=2006/2006-1222.ADM
HTS Chapter 99 of 2007 HTS (Preliminary - Effective January 1, 2007), available at
http://hotdocs.usitc.gov/docs/tata/hts/bychapter/070PC99.pdf