HTS FTA Origin Rules Not Updated for 2012 WCO, Few for 2007
A compiler’s note in the February 3, 2012 Harmonized Tariff Schedule states that the HTS rules of origin provisions for only five free trade agreements -- the NAFTA, SFTA, AFTA, CFTA, and BFTA1 -- have been updated for the WCO-recommended tariff changes that took effect in 2007, and none of the HTS FTA rules of origin have been updated for the WCO-recommended tariff changes that took effect on February 3. Such updates must be negotiated with the FTA partner country and then implemented for the U.S. HTS by proclamation.
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HTS Rule of Origin Updates for WCO Changes Must be Negotiated
U.S. officials note that any HTS FTA rule of origin changes due to the 2007 or 2012 World Customs Organization international HS changes must be negotiated with the affected FTA country and agreed upon, before they can be implemented by amending the U.S. Harmonized Tariff Schedule by proclamation.
(Note that U.S. and Korean government officials are working on updating the negotiated rules of origin (ROOs) for the pending U.S. -- Korea FTA (KORUS), as both the 2007 and 2012 WCO changes would need to be implemented. While significant progress has been made in these talks, it is not known if work will be completed before KORUS is implemented -- or whether KORUS implementation will “wait” for the ROOs talks to conclude.)
CBP Can Issue Rulings for 2007 and 2012 Problems
Government officials note that U.S. Customs and Border Protection expects to handle any 2012 HTS problems “just as it does with 2007 problems,” by issuing rulings upon request, if a provision has been changed and does not match the ROO (or the certificate of origin).
1The North American Free Trade Agreement (NAFTA), the United States-Australia Free Trade Agreement (AFTA), the United States-Singapore Free Trade Agreement (SFTA), the United States-Chile Free Trade Agreement (CFTA), and the United States-Bahrain Free Trade Agreement (FTA).