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.
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 National Marine Fisheries Service is working with CBP and the government of New Zealand to deploy a sudden ban on imports of certain fish from the country in response to an order from the Court of International Trade (see 2211280053), it said in a notice released Dec. 16 outlining the new restrictions.
Colorado-based Ellab Inc. and its Danish parent company, Ellab A/S, paid the U.S. over $700,000 to settle charges that it failed to pay customs duties on imports of thermal validation equipment, the U.S. Attorney's Office for the District of Colorado announced Dec. 1. The U.S. alleged Ellab failed to classify its imports and properly declare their value, neglecting to pay the full amount of the duties owed on the goods.
CBP reminded importers that the second phase of the pocket bag fabric rule for apparel will take effect under USMCA on Jan. 1, extending the rule to apparel made from blue denim, in a CSMS message. “This provision applies to woven apparel goods of [Harmonized Tariff Schedule] Chapter 62 that are made of blue denim fabric of HTS subheadings 5209.42, 5211.42, 5212.24 and/or 5514.30, which contain a pocket or pockets,” CBP said. “If applicable, the pocket bag fabric must be formed and finished in the territory of one or more of the USMCA countries,” from yarn that “was wholly formed and finished in the territory of one or more of the USMCA countries.” The first phase of the rule -- which applies to apparel goods under chapters 61 and 62 of the tariff schedule that contain a pocket, but not to apparel of blue denim -- has been in effect since Jan. 1, 2022.
The early submissions to the Office of the U.S. Trade Representative on whether the 7.5% and 25% tariffs on Chinese goods should continue were heavily against continuing the action. More than 90% of the 27 submissions either said end all the tariffs or urged dropping the ones that affect businesses or workers.
The Agricultural Marketing Service is reducing rates for assessments on imports of live porcine animals, pork and pork products, it said in a final rule released Nov. 3. Effective Jan. 1, assessments on domestic and imported live porcine animals will decrease to 0.35% of the market value of the animal, from 0.4%. The assessment on imports of pork and pork products will also decrease to between one-hundredth and three-hundredths of a cent per pound, depending on the Harmonized Tariff Schedule subheading applicable to the imports. The AMS is also updating the HTS subheading for prepared or preserved pork in its regulations.
The practice of providing tariff schedule subheadings for merchandise sold to customers is "customs business," and requires a customs broker license even if a disclaimer is included that the customer shouldn't rely on the classification, CBP determined in a Sept. 29 ruling, released on Oct. 22.
The Office of the U.S. Trade Representative announced changes to Harmonized Tariff Schedule numbers listed under exclusions from Section 301 tariffs effective for goods have either not been liquidated, or where entries that were liquidated but are not yet final, as of Oct. 14, according to a Federal Register notice released Oct. 13. The changes implement recent revisions to the tariff schedule, including those that took effect Jan. 1, 2022, and July 1, 2022, that affect subheadings previously listed as eligible for the exclusions. See USTR's notice for a full list of changes.
The following lawsuits were filed at the Court of International Trade during the week of Sept. 5-11:
The Court of International Trade in an Aug. 1 order granted a joint motion for stipulated judgment, granting refunds to importer Transpacific Steel for Section 232 steel and aluminum duties paid in error. The importer was originally granted three exclusions with the wrong Harmonized Tariff Schedule subheading listed in them. After having its resubmitted exclusion requests denied, Transpacific took to the trade court to seek the exclusions and refunds for the Section 232 duties paid. It received just that following a settlement with the U.S. (Transpacific Steel v. United States, CIT #21-00362).