The Court of International Trade ruled in a March 21 opinion that a customs spat over reimported swimsuits will head to phase two of trial. After sorting through whether a Warehousing Agreement between two related companies sufficed as a lease or similar use agreement during the first phase, Judge Jennifer Choe-Groves ruled that this condition was satisfied for classification under a duty-free tariff provision for U.S. goods returned. The court will now see if the remaining conditions are satisfied in order to grant SGS Sports duty-free treatment of the reimported swimwear.
Harmonized Tariff Schedule
The Harmonized Tariff Schedule (HTS) provide classification provisions and duty rates for almost every item that exists. It is a system of classifying and taxing all goods imported into the United States. The HTS is based on the international Harmonized System, which is a global standard for naming and describing trade products, and consists of a hierarchical structure that assigns a specific code and rate to each type of merchandise for duty, quota, and statistical purposes. The HTS was made effective on January 1, 1989, replacing the former Tariff Schedules of the United States. It is maintained by the U.S. International Trade Commission, but CBP is responsible for interpreting and enforcing the HTS.
A flexible packaging material imported by Amcor Flexibles Kreuzlingen is classifiable as "other" backed aluminum foil, rather than aluminum foil decorated with a pattern or design, the Court of International Trade said in a Feb. 22 decision. Judge Gary Katzmann said that since the text on the foil is communicative text and not a pattern, Amcor's suggested alternative Harmonized Tariff Schedule subheading was the proper one, though he rejected the HTS heading most preferred by Amcor.
The following lawsuits were filed at the Court of International Trade during the week of Feb. 7-13:
The WCO’s removal from its Harmonized System of six-digit subheadings for roll film cameras based on a low volume of trade means U.S. tariff provisions for cameras of heading 9006 are reorganized, though some of the provisions eliminated by the WCO remain in the U.S. Harmonized Tariff Schedule at the eight-digit level.
The 2022 Harmonized Tariff Schedule includes a new note defining “semiconductor devices” in Chapter 85. Old Note 9(a), which defined “diodes, transistors and similar semiconductor devices” is replaced by a new note, renumbered 12(a) due to the addition of other, unrelated new notes to Chapter 85. The new Note 12(a) defines the term as follows:
Several notes to Chapter 84 see changes that result from the addition of new notes and the renumbering of existing ones. A new note 5 means current notes 5 through 8 are renumbered 6 through 9, and note 5(D) now refers to Note 5(C) instead of 6(C) as a result. A new note 10 is also added, and note 9 is renumbered 11. Note 2 to Chapter 84 now refers to note 11 of Chapter 84 rather than note 9, and its paragraphs are renumbered for clarity. Note 9(A), which has redesignated as 11(A), now refers to Notes 12(a) and 12(b). Subheading note 2 now refers to note 6(C) rather than 5(C). Heading 8486 and subheading 8486.40.00, which previously referenced note 9(C), now reference note 11(C).
Subheading 6802.10.00 for “tiles, cubes and similar articles” of stone is amended so it now covers such articles if “the largest face” can fit in a 7 cm square. Previously, the subheading had referred to “the largest surface area.”
The 2022 Harmonized Tariff Schedule includes a more detailed scheme for radioactive elements, other than uranium, plutonium and thorium. Subheading 2844.40.00 (which formerly covered radioactive elements and isotopes besides natural uranium of subheading 2844.10, enriched uranium and plutonium of subheading 2844.20 and depleted uranium and thorium of subheading 2844.30) and its associated 10-digit subheadings are replaced by a series of new subheadings covering the following (with the description of the 8-digit subheading remaining as superior text):
Olive oil is given a new classification framework in the 2022 Harmonized Tariff Schedule. Provisions in heading 1509 for organic olive oil are removed, and olive oil is now classified at the six-digit level by whether it is extra virgin, virgin or “other.”
The broadest set of changes to tariff classification in five years is set to take effect toward the end of January, as the latest set of amendments to the World Customs Organization's Harmonized System tariff nomenclature is implemented in the Harmonized Tariff Schedule of the U.S. Announced by a presidential proclamation published Dec. 28, the changes are slated to take effect 30 days after that, Jan. 27 (see 2112270032). This is the 10th part of International Trade Today's multipart summary, covering photographic apparatus, measuring and checking instruments, clocks and watches, manufactured articles and cultural articles of chapters 90-97.