Officials Expect Implementation of 2012 WCO-Recommended HTS Changes on Jan 1
At a recent trade event, U.S. officials commented on the upcoming 2012 and 2017 World Customs Organization's changes to the international Harmonized System (HS). They stated that the 2012 WCO-recommended changes for the 2012 Harmonized Tariff Schedule of the U.S. (HTS) are ready for the president to proclaim, and that industry should now be submitting recommendations for changes to the 2017 HS.
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U.S. Is Obligated to Implement WCO-Recommended Changes in HTS
As a contracting party to the HS Convention, the officials stated that the U.S. is obligated to amend the HTS to reflect changes in the HS, which include amendments to tariff numbers at the four and six digit levels.
Changes to 2012 HS Mostly Deal with Ag & Food Chapters
Most of the WCO-recommended tariff changes deal with food products in agriculture chapters and are a result of interest from the Food and Agriculture Organization (FAO). The FAO recommended certain headings and breakouts at the six digit level and additional text to certain headings in Chapters 1 through 21. The FAO requested these changes to help determine world trade levels for certain food items and to help them impose food safety and food security requirements.
(See ITT's Online Archives or 07/27/11 news, 11072717, for BP summary of the WCO changes to the 2012 HS, links to BP's series of summaries of the resulting ITC's 2012 changes to the HTS, and the WCO requesting suggestions for the 2017 HS.)
Officials Expect U.S. to Make Jan 2012 Deadline for Recommended HTS Changes
The International Trade Commission attempts to make changes to the HTS coincide with those taking place internationally. Since the next round of changes is taking effect internationally on January 1, 2012, the ITC needs the president's proclamation to be published no later than the end of November for a January 1, 2012 effective date. The officials noted that for the last two rounds of changes, this deadline has been missed, causing havoc for U.S. Customs and Border Protection (CBP) and the Census Bureau. However, the officials stated that the ITC is hoping to beat the clock this round as the proclamation is ready for the president to sign.
Industry Can Still Request Changes for 2017 HS
After 2012, the next version of the HS will be effective on January 1, 2017. The HS Review Sub-Committee (RSC) is already working on the process for these changes. The officials stated that if industry has any major amendments they would like to see at the international level, now is the time to let ITC know. Although the next round of changes is aimed for 2017, the HS Committee and Council need to approve the changes by mid-2014.
(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.)
CBP & ITC Can Make Unpublished WCO Working Docs Available if Requested
CBP gives general notice of upcoming HS Committee meetings and their agenda in the Customs Bulletin. While the WCO doesn't publish its working documents, if there is an issue of interest on the agenda, CBP and ITC are required by law to make such documents available. Interested parties can request such documents, even if the documents of interest concern non-U.S. issues on the agenda. Contact parties provided in CBP's Bulletin notice are: for CBP - Joan Jackson (202) 325-0010, for ITC -- David Beck (202) 205-2592.
Topics on Agenda for Upcoming HS Committee Meeting Include Tablet Computers, Etc.
Officials stated that some of the "hotter" issues that are on the HS Committee's agenda for its September 20-29, 2011 meeting include: (i) tablet computers -- whether or not they are freely programmable and can be classified accordingly; (ii) shrimp wontons -- whether they should be classified as a prepared crustacean or a stuffed pasta; (iii) anti-malarial commodities -- on similar classification for certain items such as treated mosquito nets, spraying equipment, etc.; (iv) mouse pads -- whether classification should be based on whether they're made of hard rubber or not; (v) tripods -- whether they should be classified as camera accessories, by principal use, or by constituent material (aluminum).
(See ITT's Online Archives or 08/22/11 news, 11081940, for BP summary of the HS Committee's agenda for its September 2011 meeting, which was published in the August 17, 2011 Customs Bulletin.)
(Part of the WCO's mission is to enhance the effectiveness and efficiency of customs administrations. It issues the Harmonized Commodity Description and Coding System, the Annex to which is the backbone of the U.S.' Harmonized Tariff System. There are 139 contracting parties to the HS Convention, 138 countries and one customs and economic union, the European Union. Over 200 countries and economic unions use the HS, accounting for almost 100% of world trade.)