Reminder on CBP's Feb 3 - 20, 2007 Grace Period for WCO HTS Changes
In January 2007, U.S. Customs and Border Protection (CBP) announced that it was providing the trade with a grace period for entries filed during the February 3 - 20, 2007period regarding the World Customs Organization (WCO) 2007 Harmonized Tariff Schedule (HTS) changes that became effective on February 3, 2007.
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The following are highlights of a CBP question and answer document (Q&A) document on the February 3 - 20, 2007 grace period:
(According to the Q&A, entries filed on or after February 21, 2007 must reflect any appropriate WCO HTS changes.)
Grace Period for WCO-Related Classification Errors. The grace period applies to classification errors caused by the WCO HTS changes that result in (i) the late filing of a rejected entry for correction or (ii) a post entry correction for an entry filed during the grace period that was later found to have classification error(s).
entry rejected. If an entry is rejected by an Import Specialist or Entry Specialist either manually or electronically by remote location filing (RLF) due to misclassification attributed to the WCO HTS changes, CBP is allowing additional time for correction if needed. A written explanation will be required that justifies the additional time.
post entry review, audit. If upon subsequent review of the entry summary by the Import or Entry Specialist, CBP determines that the HTS classification is not correct and consequently issues either a penalty or formally rejects the entry summary package, this situation may be mitigated/resolved by the use of this grace period. This may also be the case if a WCO-related error(s) is discovered during an audit.
Duties, Fees, Still Due Within 10 Days. The ten-day filing requirement for filing entries will not be extended during the grace period. The entry summary with all duty, taxes, and fees must be filed within ten working days after the time of entry (19 CFR 142.12).
(See ITT's Online Archives or 01/18/07 news, 07011805, for BP summary of CBP's announcement of the grace period. See ITT's Online Archives or 01/22/07 news, 07012205, for BP summary of CBP's Q&A document.
See ITT's Online Archives or 01/29/07 news, 07012935 2, for BP summary announcing updates to the Q&A. See ITT's Online Archives or 01/25/07 news, 07012505, for BP summary announcing that CBP completed its update of the ABI records and the Harmonized records for modifications needed as a result of the WCO HTS changes. See ITT's Online Archives or 02/14/07 news 07021405, for BP summary stating that some of the underlying tariff numbers for HTS 2007 Chapter 99 are more up-to-date in the ABI records and Harmonized records than in the International Trade Commission's electronic and print versions of the 2007 HTS.)
CBP's Q&A document (updated 01/25/07) available at http://www.cbp.gov/xp/cgov/PrintMe.xml?xml=$/content/import/communications_to_trade/harmonized_tariff_qa.ctt&location=/import/communications_to_trade/world_customs_org/harmonized_tariff_qa.xml