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ITC Asks for Comments on Recommended Changes to 2017 HTS

The International Trade Commission is asking for comments by April 20 on recommended changes to the Harmonized Tariff Schedule that would take effect in 2017, it said in a notice in the Feb. 18 Federal Register (here). Most of the proposed changes would implement the World Customs Organization’s amendments to the Harmonized System agreed in January (see 1501230025). The ITC is also proposing to rationalize HTS provisions for taro and corned beef. The full list of recommendations is available in ITC Publication 4504, “Recommended Modifications to the Harmonized Tariff Schedule to Conform with Amendments to the Harmonized System Recommended by the World Customs Organization, and to Address Other Matters” (here).

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The ITC’s recommendations come in the context of an investigation launched by the agency in August. The agency says the changes are tariff rate-neutral, and do not affect the conditions of competition for domestic industry. Any changes to the scope of an existing subheading would result in a renumbering of that subheading, even if no change is made to the terms of the subheading itself. Highlights of the changes are as follows:

WCO amendments. The vast majority of the recommendations would implement amendments to the Harmonized System, upon which the HTS is based, that are set to take effect Jan. 1, 2017. The WCO in January finalized 233 changes to the Harmonized System nomenclature at the 6-digit subheading level (see 14073002 for changes to chapters 1-38, and 14073101 for chapters 38-97). The ITC is recommending modifications to the HTS to implement the HS changes at the 8-digit and 10-digit tariff line levels.

Taro. A change to the Harmonized System that took effect in 2012 resulted in the creation of new subheading 0714.40.10 (16%) for taro in the HTS. However, the U.S. HTS has since its inception in 1989 included subheading 0714.90.10 (2.3%) for dasheen, which is another name for taro. In order to eliminate the duplicate subheadings, the ITC is recommending deletion of subheading 0714.90.10 for dasheen, but would apply the 2.3% duty rate for dasheen to subheading 0714.40.10 for taro.

Corned beef. Currently, subheading 1602.50.10 for corned beef sits under a tariff provision for “other” (i.e., non-cured or pickled) beef, in airtight containers. However, corned beef is cured. In order to correct the discrepancy, the ITC proposes to delete the current subheading for corned beef and create new subheading 1602.50.07 for “Other prepared or preserved meat … : Of bovine animals: Other: Not containing cereals or vegetables: cured or pickled: corned beef in airtight containers.” The subheading would still get duty-free treatment.