ITC Institutes Investigation on Proposed HTS Changes for January 1, 2012

(Section 1205 directs the ITC to keep the HTS under continuous review and to recommend to the President modifications thereto, (1) when amendments to the international Convention on the Harmonized Commodity Description and Coding System (Harmonized System, International HS), and the Protocol thereto, are recommended by the World Customs Organization (WCO) for adoption; and/or (2) as other circumstances warrant.)

WCO-Recommended HS Changes Set to Take Effect on January 1, 2012

The proposed changes included in this investigation are set out in a Recommendation promulgated by the World Customs Organization (WCO) on June 26, 2009, in order to update and clarify the international HS. The Recommendation - the fourth in a series - is part of the WCO's long-term program to review periodically the HS nomenclature structure. The WCO's recommendations are scheduled to become effective on January 1, 2012.

U.S. Would Align its Tariff Schedule to WCO-Recommended HS Changes

The Commission's report will set forth the proposed changes to the HTS that would be needed to maintain conformity between the HTS and the international HS. The report will also include appropriate explanatory information on the proposed changes. The President may proclaim the tariff modifications recommended by the ITC, following Congressional layover and consultation.

(The ITC has previously stated that changes in the international HS that will result from this review cycle will not necessarily affect tariff rates for products imported into the U.S.; however, some consequential tariff changes may occur.)

221 Sets of Amendments, Includes Food Security, Chemicals, Pesticides, Etc.

There are 221 sets of amendments to the HS. Environmental and social issues are a major feature of the amendments, particularly the use of the HS as the standard for classifying and coding goods of specific importance to food security and early warning data falling within the ambit of the Food Security Information for Action Program of the UN Food and Agricultural Organization (FAO).

In addition, certain amendments would create additional subheadings for the identification of chemicals and pesticides controlled under the Rotterdam Convention and ozone depleting substances controlled under the Montreal Protocol.

Other amendments are a result of changes in international trade patterns and technology. For example:

the HS would be simplified by the deletion of more than 40 headings or subheadings in the nomenclature due to their low volume of trade;

certain important products would be separately identified in either existing or new headings to adapt the HS to current trade practices; and

advances in technology would be reflected where possible.

Amendments would also be made to clarify texts, to ensure uniform application of the HS.

54 International HS Chapters to be Amended by WCO

HS amendments resulting from the fourth cycle will affect 54 Chapters. These changes are listed on 57 pages, 15 of which cover Chapter 3 (fish, etc.) and 3 of which cover Chapter 29 (organic chemicals0. The affected chapters are (see recommended amendments for details):

(In 2006, Broker Power issued a 35-part series of summaries of the 2007 WCO changes as reported by the ITC for the third review cycle. See ITT's Online Archives or 10/25/06 news, 06102530, for last BP summary, with links to the 34 prior ones.)

(See ITT's Online Archives or 04/03/09 news, 09040335, for BP summary of the WCO HSC adopting the amendments.)

ITC to Issue Preliminary and Final Report on Proposed HTS Modifications

The ITC will prepare and make available a preliminary report and a final report. The preliminary report will include proposed HTS modifications to conform the HTS to the June 26, 2009 WCO Recommendation. The public is invited to submit any comments until May 21, 2010.

To assist the public in understanding the proposed changes and in developing comments, the ITC will include, in the preliminary and the final reports, a non-authoritative cross-reference table linking the proposed tariff codes to corresponding current tariff codes (which is subject to change).

(See ITT's Online Archives or 02/01/10 news, 10020110, for BP summary of the ITC's request for proposals to amend the HS in 2017.)

-Publication of preliminary report on the USITC website due by 04/09/10

-Deadline for public comments on preliminary report is 05/21/10

-Submission of final report to the President due by 06/25/10

ITC contact - David Beck (202-205-2603, fax 202-205-2616, david.beck@usitc.gov)

ITC notice (Inv. 1205-7, FR Pub 03/09/10) available at http://edocket.access.gpo.gov/2010/pdf/2010-4969.pdf.