ITC Proposes to Restore Certain Duty Rates Adversely Affected by February 3, 2007 HTS Changes

The proposed addendum addresses the tariff treatment applied to certain bamboo wooden flooring and certain broadcast receivers as well as certain changes requested by U.S. Customs and Border Protection.

The deadline for written submissions and comments on the addendum items is July 6, 2007.

Former Duty Rates for Certain Bamboo Flooring and Broadcast Receivers Would be Restored Retroactive to February 3, 2007

According to the ITC, certain products experienced higher rates of duty as a result of the modifications that went into effect February 3, 2007. In order to restore the rate of duty previously applied to such products, the ITC proposes the following modifications to the HTS, retroactive to February 3, 2007:

Certain Bamboo wooden flooring:

• 4412.10.00 would be superseded by 4412.10.05, and 4412.10.90, with duty rates of 8% for 'Plywood' and Free for 'Other,' respectively
• 4418.72.90 would be superseded by 4418.72.91 and 4418.72.95, with duty rates of Free for 'of unidirectional bamboo' and 8% for 'Other,' respectively

Certain Broadcast receivers:

• 8527.99.20 and 8527.99.50 would be superseded by 8527.99.15 and 8527.99.40 with duty rates of 3% for 'Other radio receivers' and 6% for 'Other,' respectively

CBP-Recommended Changes Would Be Effective January 1, 2008

In addition, CBP has notified the ITC of several parts of the HTS that it believes are not consistent with the HS Convention or cause an unnecessary administrative burden. Accordingly, the ITC proposes to recommend the following changes to the HTS, with the changes to be effective January 1, 2008:

Chapter 69: Ceramic Products

• Additional U.S. Note (AUSN) 1 defining "ceramic article" would be deleted as it is more restrictive in its definition than is Note 1 to the international HS Chapter 69, forcing CBP to issue rulings inconsistent with uniform interpretation of the HS by U.S. trading partners.
• Current AUSNs 2-4 would be renumbered as 1-3, as a consequence.

Chapter 75: Nickel and Articles Thereof

• HTS heading 7506would be deleted and superceded by 7506, 7506.10, 7506.10.05, 7506.10.10, 7506.10.30, 7506.20, 7506.20.05, 7506.20.10, and 7506.20.30, in order to indicate that CBP (consistent with the WCO's Explanatory Notes) does not classify material thicker than 0.15 mm as "foil" in heading 7506.

HTS Chapter 82: Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal

• AUSN 3 would be modified to read ( indicates added text): "For the purposes of determining the rate of duty applicable to sets provided for in heading 8205, 8206, 8211 or 8215, a specific rate of duty or a compound rate of duty for any article in the set shall be converted to its ad valorem equivalent rate, i.e., the ad valorem rate which, when applied to the full value of the article determined in accordance with section 402 of the Tariff Act of 1930, as amended, would provide the same amount of duties as the specific or compound rate."

This change is being proposed as AUSN 3 is also applicable to sets in heading 8206.

• 8205.59.40 through 8205.59.80 would be deleted and superseded by 8205.59.45, 8205.59.55, 8205.59.60, 8205.59.70, and 8205.59.80, in order to remove 8205.59.40 (handtools used in "agriculture, horticulture or forestry") as such uses are provided for in heading 8201.
• The superior text to 8214.20.60 that currently reads "Manicure and pedicure sets, and combinations thereof, in leather cases or other containers of types ordinarily sold therewith in retail sales" would be replaced with "Manicure and pedicure sets, and combinations thereof" The ITC states that the proposed change would make clear that such sets, other than those in leather containers, are classified in 8214.20.90.

Comment Period Extended to July 6, 2007

The ITC had previously intended written comments for this proposed addendum to be to be due June 29, 2007. However, due to a technical difficulty, the ITC's notice was not published in the Federal Register and the ITC has extended the due date for filing submissions to the close of business, July 6, 2007.

ITC to Provide Report to USTR by August 20, 2007, Public Version to be Available

The ITC states that it will provide its report to the U.S. Trade Representative by August 20, 2007, and will issue a public version of its final report on the ITC Web site. The ITC notes that no public hearing is planned in connection with the proposed modifications.

(See ITT's Online Archives or 03/15/07 and 01/04/07 news, 07031505 and 07010410, for BP summaries of HTS changes implemented in conformity to WCO's recommended changes on February 3, 2007, respectively.

See ITT's Online Archives or 10/25/06 news, 06102530 for BP summary of the proposed HTS changes, Part XXXV-Final Part, with links to previous parts.)

-written submissions and comments are due July 6, 2007

ITC proposed addendum to Investigation No. 1205-6, FR Pub 06/15/07, available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/07-2957.pdf