CBP Completes Systems Update for Trade Act HTS Chapter 99 Changes; Issues Memos on Trade Act
U.S. Customs and Border Protection (CBP) has issued Harmonized System Update No. 0701 to ABI filers stating that CBP has completed its update of the Automated Broker Interface (ABI) records and harmonized records for:
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Harmonized Tariff Schedule modifications made as a result of the trade provisions in the Tax Relief and Health Care Act of 2006 (P.L. 109-432, "Trade Act"), including HTS Chapter 99 changes, stating that most changes were effective January 4, 2007, and
changes required by the 484(f) Committee (HTS modifications at the 9th and 10th digit level) that took effect on January 1, 2007.
(CBP states that the updated records are currently available to ABI participants and can be retrieved electronically via the procedures outlined in the CATAIR.)
Separately, CBP has also issued two memorandums that provide an overview of the tariff and other trade provisions in P.L. 109-432, such as Vietnam permanent normal trade relations (PNTR), GSP and ATPA/ATPDEA extensions, amendments to AGOA apparel benefits, new Haiti benefits, HTS Chapter 99 actions, etc.
Some detail is provided for the HTS Chapter 99 changes, reliquidation instructions, and a new provision for Haiti regarding automotive wire harness components. Highlights of these details include:
New HTS Chapter 99 Duty Suspensions. According to CBP, Sections 1111 through 1459 of the Trade Act identify new HTS Chapter 99 duty suspensions for various products. The new suspensions are effective for goods entered or withdrawn from warehouse for consumption on or after January 4, 2007.
(Most of the affected products are chemicals. However, certain footwear, Kashmir (cashmere), articles of platinum, pencil sharpeners, emergency lights, canned oysters, golf bag bodies, loudspeaker parts, electric knives, toaster ovens, DVD camcorders, bicycle parts, etc. are also included.)
New HTS Chapter 99 Duty Reductions. CBP also states that Sections 1461 - 1493 of the Trade Act identify new reductions for a variety of products. The reductions are effective for goods entered or withdrawn from warehouse for consumption on or after January 4, 2007.
(Some of the affected products are chemicals. Others include rubber floor coverings, clock radios, footwear, fibers, catalytic converter mats, bicycle parts, nail clippers and files, etc.)
Extended and/or modified HTS Chapter 99 Duty Suspensions and Reductions. CBP states that certain HTS Chapter 99 duty suspensions and reductions are extended through December 31, 2009, effective January 1, 2007. These HTS Chapter 99 numbers are listed in Section 1501 of the Trade Act.
(Most of the products affected are chemicals. However snowboard boots, cashmere yarn, clock radios and prepared artichokes are also affected (the written tariff descriptions and/or duty rates for snowboard boots, cashmere yarn, and prepared artichokes are also modified.)
Reliquidations. According to CBP, Sections 2001 and 2004 of the Trade Act identify the requirement for CBP to liquidate or reliquidate certain entries of certain carbon and alloy pipe from Romania and one drawback claim. Requests for liquidation or reliquidation, and the payment by the U.S. government of the amount owed, for certain numbered entries of pasta are also provided for in Section 2002.
In addition, Sections 2003 and 2005 of the Trade Act amends certain 2000 and 2004 Trade Acts to provide for the payment of interest on amounts owed by the U.S. pursuant to the reliquidation of certain entries.
Automotive wire harness components produced in Haiti. CBP states that the Trade Act also amends CBERA by adding new special rules for Haiti under the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006 (HOPE). The special rules apply to, among other products, automotive wire harness components produced in Haiti and classified in HTS 8544.30.00, and allows for duty-free entry for 5 years if certain cost and value criteria are met. Production in countries other than the U.S. (e.g. certain free trade agreement (FTA) countries, CBERA, AGOA and ATPA countries) is allowed.
CBP's Adm: 07-0011 (dated 01/09/07) available at http://www.brokerpower.com/cgi-bin/adminsearch/admmsg.view.pl?article=2007/2007-0011.ADM
CBP memo (dated 12/29/06) from OIT's Trade Policy and Program, available athttp://www.cbp.gov/linkhandler/cgov/import/cargo_summary/misc_trade_tech_corrections_act/tax_relief/public_law.ctt/public_law_2006.doc
CBP memo (dated 01/05/07) from OIT's Commercial Targeting and Enforcement, available athttp://www.cbp.gov/linkhandler/cgov/import/cargo_summary/misc_trade_tech_corrections_act/tax_relief/amendments.ctt/amendments.doc