ITC's Final Report on Proposed HTS Changes for 2012 (Part 6: Ch. 41-63)

(These WCO-recommended HTS changes, which are intended to be rate-neutral, are scheduled to take effect via proclamation on January 1, 2012; however, they can take effect no sooner than 30 days after the proclamation is published in the Federal Register).

Amendments to HTS Sections VII-XI, Chapters 41-63

The following are the recommended amendments to HTS Sections VII to XI, covering Chapters 41-63 (see report for full descriptions/details):

(Note that no changes are proposed to Section VII (Plastics and Articles Thereof; Rubber and Articles Thereof), covering Chapters 39 and 40.)

Chapter 41: Raw Hides and Skins (Other than Furskins) and Leather

• The article description for subheading 4101.20 would be amended by deleting the expression “Whole hides and skins,” and inserting “Whole hides and skins, unsplit,” in lieu thereof.

Chapter 42:Articles of Leather; Saddlery and Harness; Travel goods, Handbags and Similar Containers; Articles of Animal Gut (Other than Silkworm Gut)

• The following new Note 1 to Chapter 42 would be inserted: “1. For the purposes of this chapter, the term “leather” includes chamois (including combination chamois) leather, patent leather, patent laminated leather and metalized leather.”
• Present Notes 1 to 3 to Chapter 42 would be renumbered as 2 to 4, respectively.
• Present Note 2 (renumbered as Note 3) would be amended by deleting the expression “note 1, above,” and inserting “note 2, above,” in lieu thereof.
• The article description for subheading 4202.11.00 would be superseded by the following: “With outer surface of leather or of composition leather”.
• The article description for subheading 4202.21.00 would be superseded by the following: “With outer surface of leather or of composition leather”.
• The article description for subheading 4202.31.00 would be superseded by the following: “With outer surface of leather or of composition leather”.
• The article description for subheading 4202.91.00 would be superseded by the following: “With outer surface of leather or of composition leather”.

(Note that no changes are proposed to Chapter 43.)

Chapter 44: Wood and Articles of Wood; Wood Charcoal

• The title “Subheading Note” in Chapter 44 would be amended to read “Subheading Notes”.
• The following new Subheading Note 1 to Chapter 44 would be inserted: “1. For the purposes of subheading 4401.31, the expression “wood pellets” means by-products such as cutter shavings, sawdust or chips, of the mechanical wood processing industry, furniture-making industry or other wood transformation activities, which have been agglomerated either directly by compression or by the addition of a binder in a proportion not exceeding 3 percent by weight. Such pellets are cylindrical, with a diameter not exceeding 25 mm and a length not exceeding 100 mm.”
• Present Subheading Note 1 to Chapter 44 would be renumbered as 2.
• The superior texts immediately preceding subheadings 4403.41.00, 4407.21.00 and 4408.31.01 and the text of subheading 4408.31 would be amended by deleting the expression “subheading note 1" and inserting “subheading note 2" in lieu thereof.
• Subheadings 4401.30 through 4401.30.40 would be superseded by the following: 4401.31.00, 4401.39, 4401.39.20, and 4401.39.40.

(Note that no changes are proposed to Chapters 45 and 46.)

Chapter 47: Pulp of Wood or of Other Fibrous Cellulosic Material; Waste and Scrap of Paper or Paperboard

• The article description for subheading 4706.93.01 would be superseded by the following: “Obtained by a combination of mechanical and chemical processes”.

Chapter 48: Paper and Paperboard; Articles of Paper Pulp, of Paper or of Paperboard

• Note 2(o) to Chapter 48 would be amended by deleting the word “or” at the end.
• Note 2(p) to chapter 48 would be superseded by the following: “(p) Articles of chapter 95 (for example, toys, games, sports requisites); or (q) Articles of chapter 96 (for example, buttons, sanitary towels (pads) and tampons, napkins (diapers) and napkin liners for babies).”
• Subheading Note 3 to Chapter 48 would be amended by deleting the expression “obtained by a semi-chemical pulping process” and inserting “obtained by a combination of mechanical and chemical pulping processes” in lieu thereof.
• Subheading Note 4 to Chapter 48 would be amended by deleting the expression “obtained by a semi-chemical pulping process” and inserting “obtained by a combination of mechanical and chemical pulping processes” in lieu thereof.
• Subheadings 4808.20.00 and 4808.30.00 would be superseded by the following: “4808.40.00.
• Subheading 4814.10.00 would be deleted.
• Subheading 4814.90.01 would be renumbered as 4814.90.02.
• The text of heading 4818 would be amended by deleting the expression “napkins for babies, tampons,”.
• Subheadings 4818.40 through 4818.40.40 would be deleted.

(Note that no changes are proposed to Chapter 49.)

Notes to Section XI: Textiles and Textile Articles

• The text of Note 1(u) to Section XI would be superseded by the following: “Articles of Chapter 96 (for example, brushes, travel sets for sewing, slide fasteners, typewriter ribbons, sanitary towels (pads) and tampons, napkins (diapers) and napkin liners for babies); or”.
• The following new Note 7(c) to Section XI would be inserted in sequence: “(c) Cut to size and with at least one heat-sealed edge with a visibly tapered or compressed border and the other edges treated as described in any other subparagraph of this note, but excluding fabrics the cut edges of which have been prevented from unraveling by hot cutting or by other simple means.”
• Present paragraphs (c) to (f) of Note 7 to Section XI would be re-lettered as (d) to (g), respectively.

(Note that no changes are proposed to Chapters 50--55.)

Chapter 56: Wadding, Felt and Nonwovens; Special Yarns, Twine, Cordage, Ropes and Cables and Articles Thereof

• Note 1(d) to Chapter 56 would be modified by deleting the word “or” at the end of the note.
• Note 1(e) to Chapter 56 would be modified by deleting the expression “section XIV or XV)” and inserting “section XIV or XV); or” in lieu thereof.
• The following new Note 1(f) to Chapter 56 would be inserted in numerical sequence: “(f) Sanitary towels (pads) and tampons, napkins and napkins liners for babies and similar articles of heading 9619.”
• Subheadings 5601.10, 5601.10.00 and 5601.10.20 would be deleted.

(Note that no changes are proposed to Chapter 57.)

Chapter 58: Special Woven Fabrics; Tufted Textile Fabrics; Lace, Tapestries; Trimmings; Embroidery

• Subheadings 5801.24.00 and 5801.25.00 would be deleted.
• New subheadings 5801.27, 5801.27.24 and 5801.27.25 would be inserted in numerical sequence.
• Subheadings 5801.34.00 and 5801.35.00 would be deleted.
• New subheadings 5801.37, 5801.37.10 and 5801.37.50 would be inserted in numerical sequence.

(Note that no changes are proposed to Chapters 59 and 60.)

Chapter 61: Articles of Apparel and Clothing Accessories, Knitted or Crocheted

• Note 6(a) to Chapter 61 would be modified by deleting the expression “it also covers babies’ napkins;”.

Chapter 62: Articles of Apparel and Clothing Accessories, Not Knitted or Crocheted

• Note 4(a) to Chapter 62 would be modified by deleting the expression “it also covers babies’ napkins;”.
• Subheading 6211.41.00, on certain women's or girls' track suits, ski-suits and swimwear would be deleted.
• New subheading 6211.49.41, on certain women's track suits, ski-suits, swimwear, etc. would be inserted in numerical sequence.

Chapter 63: Other Made up Textile Articles; Sets; Worn Clothing and Worn Textile Articles; Rags

• Subheadings 6306.91.00 and 6306.99.00 and the superior text thereto would be superseded by the following: [Tarpaulins, awning, and sunblinds:] 6306.90, 6306.90.10, and 6306.90.50.

¹Section 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.

(See ITT's Online Archives or 06/09/11, 06/10/11, 06/13/11, 06/14/11, and 06/15/11 news, 11060918, 11061006, 11061301, 11061411, and 11061508, for BP summaries of Part 1 (Overview), Part 2 (Chapters 1-5), Part 3 (Chapters 6-15), Part 4 (Chapters 16-24),and Part 5 (Chapters 25-38) of this report.

See ITT's Online Archives or 03/09/11 news, 10090315, for BP summary of the ITC announcing its investigation on proposed changes to the HTS for January 2012.)

(ITC Inv. No. 1205-7 (Final Report), dated June 2010)