The U.S. Court of Appeals for the Federal Circuit upheld CBP's decision not to grant credit to customs broker license exam test taker Byungmin Chae of Elkhorn, Nebraska, for two questions on the April 2018 exam. Judges Pauline Newman, Sharon Prost and Todd Hughes granted Chae credit for one of three questions he challenged, but that was insufficient to bring him up to the 75% threshold needed to pass the test.
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.
The Court of International Trade on March 29 dismissed a lawsuit from cell phone case maker Otter Products seeking interest on customs duty overpayments, finding it lacked jurisdiction to hear the case. Judge Claire Kelly held that the Administrative Procedure Act waiver of sovereign immunity only applies to interest on deposits linked with liquidated entries. As a result, there is no specific waiver of immunity related to Otter's claim for interest for its overpayments on tendered prior disclosures "under the no-interest rule," Kelly said.
CBP’s interpretation of the drawback statute and programming of its ACE Drawback Module led to an "absurd" rejection of substitution unused merchandise drawback eligibility for an importer of civil aviation equipment that disregards the basic structure of the tariff schedule, Spirit Aerosystems said in a March 24 motion for summary judgment at the Court of International Trade (Spirit Aerosystems v. U.S., CIT # 20-00094).
The International Trade Commission recently released Revision 2 to the 2023 Harmonized Tariff Schedule, adding four HTS subheadings under chapter 99 to implement Presidential Proclamation 10522 of Feb. 24, "Adjusting Imports of Aluminum Into the United States."
The Office of the U.S. Trade Representative complied with Administrative Procedure Act requirements when it set lists 3 and 4A Section 301 tariffs on China, the Court of International Trade held in a much-anticipated opinion on March 17. After USTR provided more explanation of its tariff decisions on remand, judges Mark Barnett, Claire Kelly and Jennifer Choe-Groves held that the explanations were not made impermissibly post hoc and cleared APA requirements.
A personal hydrofoil is properly classified in the tariff schedule as a vessel for pleasure or sports, rather than as exercise equipment, CBP said in a recently released ruling. Though the importer of the hydrofoil had argued it can only float if moving forward, CBP interpreted the definition of vessel broadly to include all structures meant to carry people or things across water.
Frozen risottos are classified as pre-cooked foods under Harmonized Tariff Schedule of the United States heading 1904, even though the risottos are only par-cooked and require more cooking by the consumer, CBP said in a recently released headquarters ruling. Though the importer argued for classification as food preparations of HTS heading 2106, CBP said foods may be considered pre-cooked if they require up to 12 minutes of additional cooking time, and the frozen risottos only require cooking for two to seven minutes more, CBP said in HQ H325964.
The Animal and Plant Health Inspection Service is developing a new Harmonized Tariff Schedule flag for use in ACE that the agency says will eliminate the need for filers to disclaim entries under tariff subheadings potentially subject to the APHIS Core partner government agency message set, it said in an emailed bulletin Feb. 9. The new “AQ3” flag will alert filers that the relevant tariff subheading may require APHIS Core PGA data, but it will not prohibit filers from successfully submitting an entry without the data or a disclaim.
The International Trade Commission posted the 2023 Basic Edition of the Harmonized Tariff Schedule. The new HTS implements the removal of AGOA benefits for Burkina Faso, as well as a lengthy list of 10-digit-level changes, including a bevy of new organic provisions for fruits and vegetables, more detailed provisions for plywood of tropical wood, and new tariff breakouts for pillows. Changes were effective as of Jan. 1 unless otherwise noted.
The International Trade Commission posted the 2023 Basic Edition of the Harmonized Tariff Schedule. The new HTS implements the removal of AGOA benefits for Burkina Faso, as well as a lengthy list of 10-digit level changes including a bevy of new organic provisions for fruits and vegetables, more detailed provisions for plywood of tropical wood, and new tariff breakouts for pillows. Changes were effective as of Jan. 1 unless otherwise noted.