ITC Issues Preliminary Edition of 2017 HTS: Part 2 (Food and Agricultural Products, Chemicals)

(NOTE: This is the second of a multipart summary of the 2017 Preliminary Edition of the HTS, covering changes to the changes to Chapters 4 through 29. See 1701030032 for part one. Summaries of changes to other chapters will appear in upcoming issues of International Trade Today. See the Change Record (here) for a full list of changes, including modifications to Schedule B numbers in the “Notice to Exporters” and changes that were already reflected in previous editions of the HTS. The effective date of all of the changes listed below is Jan. 1, 2017, unless otherwise noted.)

Other Food and Agricultural Products

The WCO also mandated a series of minor changes affecting classification in the HTS of food and agricultural products of chapters 4-24. These changes are being implemented as follows:

Milk products. New note 4(b) to Chapter 4 is added to specify that “[p]roducts obtained from milk by replacing one or more of its natural constituents (for example, butyric fats) by another substance (for example, oleic fats) (heading 1901 or 2106)” are not covered in the chapter. Old note 4(b) to Chapter 4 becomes note 4(c).

Horsehair. Note 4 to Chapter 5, which defines “horsehair” for the purposes of the tariff schedule, is modified to clarify that “[h]eading 0511 covers, inter alia, horsehair and horsehair waste, whether or not put up as a layer with or without supporting material.”

Taro. The tariff rate for fresh or chilled taro under subheading 0714.40.1000 is lowered to 2.3% (from 16%).

Dasheens. A tariff subheading previously covering fresh or chilled dasheens at 0714.90.1000 is removed. That subheading was previously dutiable at 2.3%. The remaining residual “other” subheading for fresh and chilled roots and tubers with high starch or inulin content (0714.90.3900) is 16%.

Mandarins and clementines. Current subheading 0805.20.00 for “mandarins (including tangerines and satsumas); clementines, wilkings and similar citrus hybrids,” currently divided into statistical suffixes for each category of fruit, is broken out into eight-digit subheadings for mandarins (including tangerines and satsumas) (0805.21.00), clementines (0805.22.0000), and other (0805.29.0000). All remain dutiable at 1.9¢/kg.

Perfumery, pharmacy, insecticidal and fungicidal plants. Heading 1211 for “plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purposes, fresh or dried, whether or not cut, crushed or powdered” now also includes forms that are chilled or frozen. New subheading 1211.20.1500 is created for chilled or frozen ginseng root, with fresh or dried ginseng root now classifiable in new subheading 1211.20.1000 instead of 1211.20.0000. Subheading 1211.90.9300 for “other” chilled or frozen products is also added in the residual “other” category for heading 1211. Unlike the duty-free subheadings for fresh or dried products in heading 2011, the frozen or chilled subheadings are dutiable at 6%.

Ephedra. New subheadings are added in Chapters 12 and 13 for ephedra plants (1211.50.00, free) and saps and extracts of ephedra (1302.14.0100, 1%).

Infant food and other dairy preparations. References to “infant food” in several notes and subheadings in the HTS is changed to “food suitable for infants or young children.” In addition, food suitable for infants is distinguished from food suitable for children in several places in the HTS. The change results in the renumbering of subheadings for infant milk and malt preparations of 1901.10, and other dairy preparations under 1901.90, as follows:

New subheadings 1901.10.52 through 1901.10.91 are created for milk and malt “[p]reparations suitable for young children, put up for retail sale.” The provisions are structured similarly to the renumbered subheadings for milk and malt preparations suitable for infants, referring to various applicable chapter notes.

These changes also require modifications to multiple notes to chapters 4, 17 and 19 to refer to the new subheading numbers. Notes to chapters 16, 20 and 21 are modified to refer to “food suitable for infants or young children” instead of “food for infants.”

Provisions for homogenized preparations of meat, offal or blood under old subheading 1602.10.0000 (dutiable at 1.9%) are broken out into subheadings for homogenized preparations put up for retail sale as suitable for infants and for dietetic purposes under subheading 1601.10.10 (dutiable at 1.9%), and homogenized preparations put up for retail sale as food suitable for young children under subheading 1601.10.50 (dutiable at 6.4%).

Now-defunct subheading 2104.20.0000 for homogenized composite food preparations (previously dutiable at 2.5%) is broken out into new subheadings 2104.20.1000 for homogenized composite food preparations suitable for infants or dietetic purposes (dutiable at 2.5%), and 2104.20.5000 for homogenized composite food preparations suitable for young children (dutiable at 6.4%).

Corned beef. The ITC is deleting the current subheading for corned beef and creating new duty-free 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 still gets duty-free treatment. Previously, the provision for corned beef had been in the “other” category for non-cured or pickled beef, but corned beef is cured.

Shark fins. New subheading 1604.18 is created for prepared or preserved shark fins, with new subheading 1604.18.1000 covering shark fins in airtight containers (dutiable at 4%), and subheading 1604.18.9000 covering “other” prepared or preserved shark fins (dutiable at 6%).

Non-alcoholic beer. A subheading for non-alcoholic beer (2202.91.0000, 0.2¢/liter) is added to heading 2202 for “Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavored, and other non-alcoholic beverages, not including fruit or vegetable juices of heading 2009.” Now defunct subheading 2202.90, which included milk-based drinks and fortified fruit and vegetable juices is renumbered 2202.99. Each subheading previously included in subheading 2202.90 retains the same eight- and 10-digit suffixes they had in 2202.90. For example, former subheading 2202.90.36 for fortified fruit or vegetable juice from a single fruit or vegetable, other than orange juice, becomes new subheading 2202.99.36. The changes require several modifications to chapter notes that referred to the now-defunct subheadings.

Larger bottles of wine. The classification scheme for wines is modified to provide for bottles of wine that hold between 4 and 10 liters. Previously, wines had been divided into bottles holding less than two liters, two to four liters, and more than four liters. Provisions under subheading 2204.21 for bottles holding two liters or less are unchanged. Previous subheadings 2204.29.20 and 2204.29.40 for bottles holding two to four liters are renumbered 2204.22.20 and 2204.22.40, and now cover bottles holding two to four liters. New subheadings 2204.22.60 and 2204.22.80 are created for wines holding four to 10 liters. Subheadings 2204.29.60 and 2204.29.80, which previously included bottles holding more than four liters, now cover wines holding more than 10 liters, and are renumbered 2204.29.61 and 2204.29.81. As had been the case previously, each pair of subheadings is divided by whether the wine contains more or less than 14% alcohol by volume.

Sake. Though its classification at the subheading level is unaffected, sake is added to the list of exemplars in the text of heading 2206.

Chemicals and Petroleum

A series of changes to HTS chapters 27-29 is required to implement modifications to the WCO Harmonized System. The changes include a lengthy list of new subheadings, which the WCO said will help implementation of controls on chemical weapons and hazardous chemicals.

Coal tar distillates. The text of subheading 2707.50.00, which covers “other” coal tar distillates of which 65% distills at 250 degrees Celsius, as well as a subheading note to chapter 4, which applies to “light oils and preparations” under subheading 2710.12, are amended to refer to the ISO 3405 distillation method in addition to the equivalent ASTM method already included in the text.

Hydrogen cyanide. New subheading 2811.12.00 is added for hydrogen cyanide, dutiable at 4.2%. That’s the same as the duty rate for the residual “other” category” for inorganic acids, where hydrogen cyanide was previously classified under the now-defunct statistical suffix 2811.19.6010. The residual category is renumbered 2811.19.61.

Halide chlorides. New subheadings for chlorides and chloride oxides are added in heading 2812, which covers halides and halide oxides of nonmetals, including provisions for phosgene (2812.11.00), phosphorous oxychloride (2812.12.00), phosphorus trichloride (2812.13.00), phosphorous pentachloride (2812.14.00), sulfur monochloride (2812.15.00), sulfur dichloride (2812.16.00), thionyl chloride (2812.17.00) and other chlorides and chloride oxides (2812.19.00). All are dutiable at 3.4%, except for phosphorous pentachloride under subheading 2812.14.00, which remains duty free. The previous subheading for chloride and chloride oxides, 2812.10, is eliminated.

Phosphides, inorganic compounds and liquid and compressed air. Heading 2848 for “[P]hosphides, whether or not chemically defined, excluding ferrophosphorus,” is eliminated, and incorporated into heading 2853, which also continues to cover “other inorganic compounds,” liquid air, compressed air and amalgams that don’t include precious minerals. The text of heading 2853 is modified accordingly. The subheadings previously included under the defunct heading for phosphides -- 2848.00.10 and 2848.00.90 -- are renumbered as new subheadings 2853.90.10 for phosphor copper, and 2853.90.50 for phosphides of other metals or nonmetals, each retaining the same duty rate. Note 7 to Chapter 28 is amended to reflect the change. Articles previously classified in heading 2853 are given their own subheadings: 2853.10.00 for cyanogen chloride, and 2853.90.90 for “other,” including gallium arsenide waters (2853.90.9010).

Perfluorooctane sulfanilic acid. New subheadings are added in heading 2904 for “[p]erfluorooctane sulfonic acid, its salts and perfluorooctane sulfonyl fluoride.” The new subheadings cover the following chemicals: perfluorooctane sulfonic acid (2904.31.00), ammonium perfluorooctane sulfonate (2904.32.00), lithium perfluorooctane sulfonate (2904.33.00), potassium perfluorooctane sulfate (2904.34.00), other salts of perfluorooctane sulfonic acid (2904.35.00) and perfluorooctane sulfonyl fluoride (2904.36.00). All are dutiable at 3.7%. The residual “other” subheading 2904.90 for sulfonated, nitrated or nitrosated derivatives of hydrocarbons is renumbered 2904.99. HTS numbers for all subheadings previously under 2904.90 remain the same (e.g., nitrotoluenesulfonic acids previously classifiable under subheading 2904.90.20 are now classifiable under 2904.99.20), with one exception: trichloronitromethane (chloropicrin) is given its own subheading 2904.91.00, dutiable at 3.7%.

Chlordecone. New subheading 2914.71.00 is added for chlordecone, dutiable at 4%, under a category for “halogenated, sulfonated, nitrated or nitrosated derivatives” of ketones and quinones. The previous subheading for halogenated, sulfonated, nitrated or nitrosated derivates of ketones and quinones, 2914.70.00, becomes subheading 2914.79. Each subheading retains its eight-digit and 10-digit suffixes. For example, 1-Chloro-5-hexanone, previous classifiable in 2914.70.6000, is not classifiable in subheading 2914.79.6000.

Amine-function compounds. 2-(N,N-Dimethylamino)ethyl chloride hydrochloride, 2-(N,N-Diethylamino)ethyl chloride hydrochloride and 2-(N,N,-Diisopropylamino)ethyl chloride hydrochloride, previously classifiable under subheading 2921.19.30, are given their own subheadings 2921,12.01 (free), 2921.13.00 (free) and 2921.14.00 (6.5%), respectively. Subheading 2921.19.30 is renumbered 2921.19.31, and now includes only 3-Amino-3-methyl-1-butyne; (Dimethylamino)isopropyl chloride hydrochloride. The residual “other” subheading for acyclic monoamines is renumbered 2921.19.61.

Triethanolamine. The former subheading for “triethanolamine and its salts,” 2922.13.00, is eliminated, and replaced by new subheading 2922.15.00 for triethanolamine, and 2922.19.90 for salts of triethanolamine. The residual subheading 2922.19.95 for “other” amino-alcohols is renumbered 2922.19.96.

Organo-sulfur compounds. Former subheading 2930.50.00 for captafol and methamidophos is eliminated and replaced by new subheading 2930.80.00, which covers “[a]ldicarb (ISO), captafol (ISO) and methamidophos (ISO).”

Sulfonamides. With the addition of several new sulfonamides under subheadings 2935.10 through 2935.50 (see table below), sulfonamides previously classified in subheading 2935.00 are now classifiable as “other” sulfonamides under subheading 2935.90. Each subheading within maintains the same eight- and 10-digit suffixes. For example, “[s]ulfathiazole and Sulfathiazole, sodium,” previously classified in subheading 2935.00.33, is now classifiable in new subheading 2935.90.33. The superior text to subheadings 2935.90.29 through 2935.90.48 appears it has been removed from the 2017 Preliminary Edition of the HTS. However, this may be a printing error. The ITC’s report on tariff changes (here) does not mention a change to the superior text (see page 66), nor does the change record.

Alkaloids. The text of heading 2939 is modified so that it no longer refers to vegetable alkaloids. It now says “[a]lkaloids, natural or reproduced by synthesis, and their salts, ethers, esters and other derivatives. Vegetal alkaloids are now classifiable in subheadings 2939.71.00 (for “[c]ocaine, ecgonine, levometamfetamine, metamfetamine (INN), metamfetamine racemate; salts, esters and other derivatives thereof,” which moves from subheading 2939.91.00 and remains duty-free, and “other” alkaloids of vegetal origin under subheading 2939.79.00. The subheading for “other” alkaloids is renumbered from 2939.99.00 to 2939.80.00.

Other new chemical subheadings. Other chemicals newly added to chapter 29 are as follows:

*Denotes a slight renumbering of the “other” category in the same heading. For example, with the addition of endrin under subheading 2910.50.00, the residual subheading for heading 2910, previously 2910.90.90, is renumbered 2910.90.91.

†Subheading 2914.69.20 for quinones used as drugs is renumbered 2914.69.21.