The International Trade Commission recently issued two updates to the Harmonized Tariff Schedule to reflect changes for Section 301 tariffs on products from China. In Revision 4, the ITC implemented the increase in duties on tranche three of goods subject to the tariffs from 10 to 25 percent, as announced in early May (see 1905060040). The increase in duty rates for subheadings 9903.88.03 and 9903.88.04, as well as U.S. Notes 20(e) and 20(g) to subchapter III of chapter 99, took effect May 10. The subsequently issued Revision 5 implemented a new batch of exclusions from tranche one of the tariffs under new subheading 9903.88.08 and U.S. Note 20(k) to subchapter III, and made conforming changes to U.S. Note 20(a) and U.S. Note 20(b). It also implemented new subheading 9903.88.09 for goods subject to tranche three of duties that are still subject to a 10 percent duty because they were exported from China before May 10 and entered before June 1. U.S. Note 20(l) explains the new provision. Also in Revision 5 but unrelated to Section 301 tariffs, the ITC updated Statistical Annexes A and B of the HTS to reflect the new name of North Macedonia.
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.
CBP on May 14 added the ability in ACE for importers to file entries with the fourth group of exclusions from the first tranche of Section 301 tariffs, it said in a CSMS message. Filers of imported products that were granted an exclusion should report the regular Chapter 84, 85 or 90 Harmonized Tariff Schedule number, as well as subheading 9903.88.08 for products subject to Section 301 duties on products from China but that have been granted an exclusion by the Office of the U.S. Trade Representative. “Do not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.08 is submitted,” CBP said.
Only 453 8-digit Harmonized Tariff Schedule subheadings would not be covered by Section 301 tariffs on products from China, should the duties be imposed on the proposed fourth tranche of goods without any changes from the Office of the U.S. Trade Representative’s list. That’s only about 4 percent of the over 11,000 8-digit subheadings in the HTS, with the remainder being subject to tariffs of up to 25 percent.
CBP provided some details in a May 9 CSMS message on how importers should file entries that will be subject to the increased Section 301 duties on goods from China. The CSMS message confirms that the increased duties will only apply to goods exported and entered after May 10 (see 1905080035). During a call with software developers the same day, CBP officials explained that several pieces are still being worked out, including the addition of a tariff subheading for goods exported before May 10 and entered after the tariffs take effect.
The Commerce Department issued notices in the Federal Register on its recently initiated antidumping and countervailing duty investigations on ceramic tile from China (A-570-108/C-570-109). The CV duty investigation covers entries Jan. 1, 2018, through Dec. 31, 2018. The AD duty investigation covers entries Oct. 1, 2018, through March 31, 2019.
CBP on April 18 added the ability in ACE for importers to file entries with the third group of exclusions from Section 301 duties, it said in a CSMS message. Filers of imported products that were granted an exclusion should report the regular Chapter 84, 85 or 90 Harmonized Tariff Schedule number, as well as subheading 9903.88.07 for products subject to Section 301 duties on products from China but that have been granted an exclusion by the Office of the U.S. Trade Representative. “Do not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.07 is submitted,” CBP said.
The International Trade Commission recently posted Revisions 1 and 2 to the 2019 Harmonized Tariff Schedule. According to its change record, Revision 1 adds new note 20(i) to subchapter III of Chapter 99 to implement the latest set of Section 301 exemptions announced by the Office of the U.S. Trade Representative (see 1903210048). New HTS subheading 9903.88.06 is added for products that benefit from the new set of exclusions. Also, General Statistical Note 4(d) is amended to add unit of quantity abbreviation “A” for amperes, and remove the abbreviation “gr cntnrs” for gross containers. Revision 2 adds a new section to the rules of origin under the U.S.-Morocco Free Trade Agreement in General Note 27 for goods of chapter 62, as announced by USTR on March 22 (see 1903210042). That change, the only in the now-current Revision 2 edition of the HTS, takes effect April 1.
CBP on March 22 added the ability in ACE for importers to file entries with the second group of exclusions from Section 301 duties, it said in a CSMS message issued on the same day. Filers of imported products that were granted an exclusion should report the regular chapter 84, 85 or 90 Harmonized Tariff Schedule number, as well as subheading 9903.88.06 for products subject to Section 301 duties on products from China but that have been granted an exemption by the Office of the U.S. Trade Representative. “Do not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.06 is submitted,” CBP said.
The latest batch of Section 301 exclusions (see 1903200067) only cover three 10-digit-level products in whole, while another 30 products are subsets of 10-digit Harmonized Tariff Schedule codes.
CBP on Feb. 10 added the ability in ACE for importers to file entries with exclusions from Section 301 duties, it said in a CSMS message issued two days earlier. Filers of imported products that were granted an exclusion should report the regular chapter 1-97 Harmonized Tariff Schedule number, as well as subheading 9905.88.05 for products subject to Section 301 duties on products from China but that have been granted an exemption by the Office of the U.S. Trade Representative. “Do not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.05 is submitted,” CBP said.