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ITC Posts Updated 2014 Tariff Schedule; Changes Took Effect July 1

The International Trade Commission recently posted the first changes to the 2014 Harmonized Tariff Schedule. Revision 1 to the 2014 HTS implements changes in AGOA eligibility and clarifies a list of exemptions to the Merchandise Processing Fee (MPF) that was added in January (see 14010221). It also adds new statistical suffixes for golf cart and all-terrain vehicle tires, gas stoves, refrigerator-freezers, ribbon cable connectors, magnets, and wheels and tires for various equipment and machinery, among other products. A record of the changes is (here). All of the changes in Revision 1 took effect July 1.

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Madagascar Reinstated as AGOA Beneficiary, Swaziland Revoked

A change to General Note 16(a) adds Madagascar to the list of beneficiaries under AGOA. The Obama Administration reinstated Madagascar in late June in Presidential Proclamation 9145 (see 14062706). Madagascar is also being added to the list of lesser developed beneficiaries for the purposes of AGOA textile and apparel benefits under Note 2(d) to subchapter XIX of Chapter 98.

The same proclamation revoked AGOA beneficiary status for Swaziland, but that has yet to be reflected in the list of in General Note 16(a). However, the list of countries eligible for textile and apparel benefits under AGOA at Note 1 to subchapter XIX of Chapter 98 is amended to remove Swaziland.

Clarification of MPF Exemptions for GSP, CBERA, Insular Possessions

The new version of the HTS revises General Statistical Note 3(c) on exemptions from Merchandise Processing Fee for goods entered under certain free trade agreements and preferential trade agreements. The change clarifies the list added in January of FTAs and other programs exempt from MPF payments by saying that goods are also exempt from MPF when entered under the SPIs for Insular Possessions (Y), the Caribbean Basin Economic Recovery Act (E or E*), or the Generalized System of Preferences if the product is from a least-developed beneficiary (A, A* or A+).

Another edit to GSN 3(c) clarifies that goods can be imported free of merchandise processing fee (MPF) using SPIs for the Agreement on Trade in Civil Aircraft (C#), Agreement on Trade in Pharmaceutical Products (K#), or the Uruguay Round Concessions on Intermediate Chemicals for Dyes (L#), so long as the goods are either (1) originating in an MPF-exempt free trade trade promotion agreement country or (2) products of a country that is eligible for an MPF-exempt special tariff program.

Japanese Organic Certification Added

Statistical notes to Chapters 4, 7, 8, 9, 10, 12, 15 and 22 defining the expression “Certified organic” in the tariff schedule are amended to add the Japanese Agricultural Standard (JAS) for Organic Plants (Notification No. 1605 of 2005) and the JAS for Organic Processed Foods (Notification No. 1606 of 2005) as acceptable standards. The statistical notes had previously included only U.S., Canadian and EU regulations. The U.S. agreed to also recognize Japanese standards in September 2013 (see 13100323).

New Statistical Suffixes

The July 2014 version of the HTS adds new statistical suffixes to subheadings for golf cart and all-terrain vehicle tires, gas stoves, refrigerator-freezers, ribbon cable connectors, magnets, and wheels and tires for various equipment and machinery. Just as with all other changes in this edition of the HTS, all of added statistical suffixes took effect July 1.

Rare-earth compounds. A statistical suffix is added to subheading 2846.90.20 for mixtures of “rare-earth oxides except cerium oxides” that contain yttrium or scandium as the predominant metal (2846.90.2015). The subheading is further revised to add a statistical suffix for mixtures of rare-earth chlorides except cerium chloride containing yttrium or scandium as the predominant metal (2846.90.2082). Relevant “other” categories are renumbered accordingly, and statistical suffixes for “other” mixtures of oxides and chlorides of yttrium or scandium are deleted (2846.90.8050 and 2846.90.8060).

Urea fertilizers. The tariff subheading for urea fertilizer is broken out into new statistical suffixes for solid urea (3102.10.0010) and other urea, including diesel exhaust fluid (3102.10.0030) and “other” other urea (3102.10.0050).

Activated carbon. The subheading for activated carbon is broken out into new statistical suffixes for activated carbon derived from coal (3802.10.0010), derived from coconut (3802.10.0020) or “other” activated carbon (3802.10.0050).

New pneumatic tires. Several subheadings for “other” new pneumatic tires not for use on cars, buses, trucks, aircraft, motorcycles or bicycles are broken out to differentiate tires of a kind used on golf carts, all-terrain vehicles and trailer applications. New statistical suffixes of this type are included for other “herring-bone” tread tires (4011.69.0010), and other tires not for use in forestry or construction applications, both radial (4011.99.4510) and non-radial (4011.99.8510). “Other” suffixes are also added accordingly.

Uncoated supercalendered paper. The subheading for other uncoated paper and paperboard with over 10% fiber obtained by a mechanical process, in rolls of over 15mm wide, not for writing and cover gauge or drawing, weighing more than 40 g/m2, is amended to add a statistical suffix for supercalendered paper (4802.61.3035).

Gas stoves. The subheading for non-portable gas-fueled cooking stoves or ranges is broken out into statistical suffixes based on size: less than 70 cm wide (7321.11.3010), 70-80 cm wide (7321.11.3020), and over 80 cm wide (7321.11.3010).

Refrigerator-freezers. The classification for compression-type refrigerator freezers with a refrigerated volume of 382 liters or more is broken out into French door refrigerators with a bottom freezer compartment, and other refrigerator-freezers (8418.10.0075). The French door category is further broken out into refrigerator-freezers with French doors between 85 and 95 cm wide that have an external depth of over 73 cm (8418.10.0045) and those that are not so deep (8418.10.0055).

Heavy equipment parts. The subheading for “other” parts of backhoes, shovels, clamshells and draglines” is broken out to include statistical suffixes for road wheels (8431.49.9036) and wheel and tire assemblies (8431.49.9038). Similarly, the subheading for “other” parts of machinery in headings 8426 (cranes), 8429 (bulldozers) or 8430 (other earth-moving equipment) is also broken out into specific categories for road wheels (8431.49.9084) and wheel and tire assemblies (8431.49.9090).

Lawnmowers and harvesting machinery. The subheading for parts of lawnmowers is broken out into categories for wheel and tire assemblies (8433.90.1010) and other parts (8433.90.1090). Similarly, the subheading for other parts of harvesting or threshing machinery is broken out into statistical suffixes for road wheels (8433.90.5010) and other parts (8433.90.5050).

Magnets. The subheading for permanent magnets made of metal is broken out into statistical suffixes for magnets made of alnico (8505.11.0010), ceramic (8505.11.0030), sintered samarium-cobalt (8505.11.0050), sintered neodymium-iron-boron (8505.11.0070), and other permanent metal magnets (8505.11.0090).

Electric stoves, ranges and ovens. The subheading for non-portable cooking stoves, ranges and ovens that aren’t combined with microwaves is subdivided by size into statistical suffixes for those which have a maximum width of under 70 cm (8516.60.4074) and those that are bigger. The bigger stoves are in turn broken out into statistical suffixes for those that contain a gas-fueled cooktop (8516.60.4078), those that contain a radiant heated cooktop (8516.60.4082), and those that contain none of the above ((8516.60.4086).

Ribbon cable connectors. A statistical suffix for ribbon or flat cable connectors (8536.69.4051) replaces the current category for “other” coaxial connectors, multicontact connectors, rack and panel connectors, printed circuit connectors, and ribbon or flat cable connectors.

Self-propelled ‘works’ trucks. The subheading for parts of ‘works trucks’ for short distance transport of goods at factories, warehouses, docks, airports or railway station platforms is subdivided into statistical suffixes for road wheels (8709.90.0010), wheel and tire assemblies (8709.90.0020), and other parts (8709.90.0090).

Farm wagons and carts. The subheading for parts of farm wagons and carts is also subdivided into statistical suffixes for road wheels (8716.90.1010), wheel and tire assemblies (8716.90.1020), and other parts (8716.90.1090).

Trailers and semitrailers. The tariff subheading for wheels of non-farm trailers and semi-trailers that are 30 to 42 cm in diameter is subdivided into statistical suffixes for wheels (8716.90.5045),and wheels with tires (8716.90.5055).

U.S. goods returned. Statistical suffixes are added to the tariff subheading for U.S. goods returned under heading 9801 for articles of chapter 71 (pearls, precious and semi-precious stones, and jewelry) (9801.00.1030) and articles of chapter 97 (works of art, collectors’ pieces and antiques) (9801.00.1097). The statistical suffix for “other” U.S. goods returned is renumbered (9801.00.1098).