ITC Issues Preliminary Edition of 2017 HTS: Part 3 (Chemical Products, Plastics and Rubbers, Wood Products)

(NOTE: 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. See 1701030032 for part one covering the general notes through Chapter 3, and 1701040046 for part two covering changes to chapters 4-29.)

Pharmaceuticals, Fertilizers, Explosives and Other Chemicals

Amendments to HTS Chapters 30-38 for pharmaceuticals, fertilizers, explosives and other “miscellaneous chemical products” largely implement changes in the WCO’s Harmonized System. More detail is added for immunological products and medicaments, including new subheadings for anti-malarial drugs. Some pesticides, including DDT, are given more detail in the HTS, as are some chemicals classified in the tariff schedule’s residual provisions for chemical preparations.

Antisera and immunological products. Antisera and other blood fractions and immunological products are given more detailed tariff treatment. Subheading 3002.10.02, which previously covered all such articles, is eliminated and replaced by separate subheadings for malaria diagnostic test kits (3002.11.00), antisera and other blood fractions (3002.12.00), unmixed immunological products not put up in measured doses or for retail sale (3002.13.00), mixed immunological products not put up in measured doses or for retail sale (3002.14.00), immunological products put up in measured doses or for retail sale (3002.15.00), and other immunological products (3002.19.00). Subheading 3002.12.00 is subdivided into statistical suffixes for human blood plasma (3002.12.0010), normal human blood sera (3002.12.0020), human immune blood sera (3002.12.0030), fetal bovine serum (3002.12.0040) and other antisera and blood fractions (3002.12.0090).

New statistical note 1 is added to Chapter 30, saying that, for the purposes of unmixed and mixed immunological products of subheadings 3002.13.00 and 3002.14.00, unmixed products are pure products, whether or not containing impurities. Mixed products are pure products dissolved in water or other solvents; products with an added stabilizer necessary for preservation or transport; or products with any other additive.

Medicaments. Tariff provisions for medicaments under headings 3003 (not in doses or put up for retail sale) and 3004 (in doses or put up for retail sale) are overhauled and supplemented. The terms of each subheading in headings 3003 and 3004 is slightly modified to clarify the hierarchy of classification within the heading by adding the word “other” before every subheading but the first (i.e., the subheading for medicaments containing penicillins remains the same, but the next in numerical order, 3003.20.00, now covers “other, containing antibiotics,” and the superior text for the next group of subheadings says “other, containing hormones … ”).

New provisions are added for “other” medicaments “containing alkaloids or derivatives thereof,” previously classifiable in the now-defunct subheadings 3003.40 and 3004.40. Subheadings 3003.41.00 and 3004.41.00 now cover such articles “containing ephedrine or its salts,” subheadings 3003.42.00 and 3004.42.00 now cover such articles containing “pseudoephedrine (INN) or its salts,” new subheadings 3003.43.00 and 3004.43.00 now cover such articles containing norephedrine or its salts, and subheadings 3003.49.00 and 3004.49.00 cover other “other [medicaments] containing alkaloids or derivatives thereof.” Subheading 3004.49.00 retains the statistical suffixes formerly applicable to subheading 3004.40.00 (e.g., 3004.49.0005 is “other, for veterinary use”). The residual subheadings for other medicaments of headings 3003 and 3004 are renumbered from 3003.90.00 to 3003.90.01, and from 3004.90.10 to 3004.90.92, respectively.

Subheadings 3003.60.00 and 3004.60.00 are added for other medicaments “containing antimalarial active principles described in subheading note 2 to this chapter.” The subheading note, also added in this edition of the HTS, clarifies that the two subheadings cover “medicaments containing artemisinin (INN) for oral ingestion combined with other pharmaceutical active ingredients, or containing any of the following active principles, whether or not combined with other pharmaceutical active ingredients: amodiaquine (INN); artelinic acid or its salts; artenimol (INN); artemotil (INN); artemether (INN); artesunate (INN); chloroquine (INN); dihydroartemisinin (INN); lumafantrine (INN); mefloquine (INN); piperaquine (INN); pyrimethamine (INN) or sulfadoxine (INN).”

Superphosphates. Classification of superphosphate fertilizers, previously under subheading 3103.10.00, is broken out into two subheadings. The threshold between the two classifications is lowered from 40 percent phosphorus pentoxide content, so that new subheading 3103.11.00 covers superphosphates containing by weight 35 percent or more of diphosphorous pentaoxide, and subheading 3103.19.00 covers “other” superphosphates.

Ferrocerium and resin torches. In a change mandated by the U.S. 484(f) committee rather than the WCO, subheading 3606.90.30 for “[f]errocerium and other pyrophobic alloys is subdivided into statistical suffixes for such articles put up in forms or packages for retail sale (3606.90.3010) and “other” (3606.90.3090). Likewise, subheading 3606.90.80 for other articles of heading 3606, which according to the chapter notes covers “resin torches, firelighters and the like,” is subdivided into statistical suffixes for such articles put up in forms or packages for retail sale (3606.90.8010), and “other” (3606.90.8090).

Photographic plates. All exposed and developed photographic plates and film (except cinematographic) are now classifiable under the single subheading 3705.00.0000. Previously the subheading had been divided into subheadings for articles for offset reproduction and other articles.

Pesticides. Subheading 3808.50, which previously covered pesticides specified in subheading note 1 to Chapter 38 that are put up for retail sale or as preparations or articles, is divided into several new tariff provisions. DDT in packages not exceeding 300 g is now classifiable in new subheading 3808.52.0000 (dutiable at 6.5%). Former subheadings 3808.50.10, 3808.50.40 and 3808.50.50 for other goods specified in subheading note 1 are now classifiable in new subheadings 3808.59.10, 3808.59.40 and 3808.59.50, respectively. Subheadings note 1 is amended accordingly to refer to the correct tariff numbers.

New subheadings 3808.61 through 3808.69 are created for a list of pesticides included in new subheading note 2 to chapter 38, which includes: “alpha-cypermethrin (ISO), bendiocarb (ISO), bifenthrin (ISO), chlorfenapyr (ISO), cyfluthrin (ISO), deltamethrin (INN, ISO), etofenprox (INN), fenitrothion (ISO), lambda-cyhalothrin (ISO), malathion (ISO), pirimiphos-methyl (ISO) or propoxur (ISO).” New subheadings 3808.61.10 and 3808.51.50 cover goods in packages of 300 g or less; new subheadings 3808.62.10 and 3808.62.50 cover goods in packages over 300 g but not over 7.5 kg; new subheadings 3808.69.10 and 3808.69.50 cover goods in packages larger than 7.5 kg. Whether a product of a given size is classifiable in one or the other of the two subheadings (i.e., XXXX.XX.10 or XXXX.XX.50) depends on whether or not it contains any aromatic or modified aromatic pesticide.

Rubber and plastic stabilizers. Tariff provisions under former subheading 3812.30.00 for “[a]ntioxidizing preparations and other compound stabilizers for rubber or plastics” are broken out into more detail. New subheading 3812.31.00 is added for “mixtures of oligomers of 2,2,4-trimethyl-1,2-dihydroquinoline (TMQ).” Other provisions for compound stabilizers for rubber or plastics are renumbered as subheading 3812.39, but otherwise retain the same structure. For example, Mixtures of N,N'-diaryl-p-phenylenediamines, formerly classifiable under subheading 3812.30.2000, are now classifiable under subheading 3812.39.2000.

Other chemical preparations. New subheading note 3 is added to Chapter 38, clarifying classification in several new and existing subheadings at 3824.81 to 3824.88. According to the note, these subheadings “cover only mixtures and preparations containing one or more of the following substances: oxirane (ethylene oxide), polybrominated biphenyls (PBBs), polychlorinated biphenyls (PCBs), polychlorinated terphenyls (PCTs), tris(2,3-dibromopropyl) phosphate, aldrin (ISO), campheclor (ISO) (toxaphene), chlordane (ISO), chlordecone (ISO), DDT (ISO) (clofenatone) (INN), 1,1,1-trichloro-2,2-bis(p-chlorophenyl)ethane), dieldrin (ISO, INN), endosulfan (ISO), endrin (ISO), heptachlor (ISO), mirex (ISO), 1,2,3,4,5,6-hexachlorocyclohexane (HCH (ISO)), including lindane (ISO, INN), pentachlorobenzene (ISO), hexachlorobenzene (ISO), perfluorooctane sulfonic acid, its salts, perfluorooctane sulfonamides, perfluorooctane sulfonyl fluoride or tetra-, penta-, hexa-, hepta-, or octabromodiphenyl ethers.”

The superior text to subheadings 3824.81 through 3824.83, which previously only included “Mixtures and preparations containing oxirane (ethylene oxide), polybrominated biphenyls (PBBs), polychlorinated biphenyls (PCBs), polychlorinated terphenyls (PCTs) or tris(2,3-dibromopropyl) phosphate,” now simply refers to subheading note 3.

New subheading 3824.84.00 is added to cover goods specified in subheading note 3 “[c]ontaining aldrin (ISO), camphechlor (ISO) (toxaphene), chlordane (ISO), chlordecone (ISO),DDT (ISO) (clofenatone (INN)), 1,1,1-trichloro-2,2-bis(p-chlorophenyl)ethane), dieldrin(ISO, INN), endosulfan (ISO), endrin (ISO), heptachlor (ISO) or mirex (ISO). New subheading 3824.85.00 is added for goods specified in subheading note 3 “[c]ontaining 1,2,3,4,5,6-hexachlorocyclohexane (HCH(ISO)), including lindane (ISO,INN).” New subheading 3824.86.00 is added for goods specified in subheading note 3 “[c]ontaining pentachlorobenzene (ISO) or hexachlorobenzene (ISO). New subheading 3824.87.00 is added for goods specified in subheading note 3 “[c]ontaining perfluorooctane sulfonic acid, its salts, perfluorooctane sulfonamides, or perfluorooctane sulfonyl fluoride.” New subheading 3824.88.00 is added for goods specified in subheading note 3 “[c]ontaining tetra-, penta-, hexa-, hepta-, or octabromodiphenyl ethers.” All the new subheadings are dutiable at 6.5%, except 3824.88.00, which is dutiable at 3.7%.

New subheading 3824.91.00 is added for “[m]ixtures and preparations consisting mainly of (5-ethyl-2-methyl-2-oxido3,2-dioxaphosphinan-5-yl)methyl methylphosphonate and bis(5-ethyl-2-methyl-2-oxido-1,3,2-dioxaphosphinan-5-yl)methyl methylphosphonate,” dutiable at 5%. Former subheading 3824.90 is renumbered 3824.99, but maintains the same structure – cultured crystals under 3824.90.11 are now classifiable under 3824.99.11 – with one exception. Former subheading 3824.90.22 for mixtures containing 5 percent or more by weight of aromatic substances and “consisting of polymers of 1,2-dihydro-2,2,4-trimethylquinoline averaging less than 5 monomer units” is deleted entirely.

Plastics and Rubbers

Changes to the tariff classification of plastics and rubbers of chapters 39 and 40 include an overhaul to the classification of tires for industrial and agricultural uses. Other changes affect classification of raw PET and ethylene polymers, as follows:

Ethylene polymers. New subheading 3901.40.00 is added for “[e]thylene-alpha-olefin copolymers, having a specific gravity of less than 0.94,” dutiable at 6.5%. Subheading note 1 to Chapter 39 is modified so that it covers the new subheading, requiring 95% or more ethylene-alpha-olefin copolymer content for classification in the new subheading.

Polyethylene terephthalate. Provisions for classification of polyethylene terephthalate in primary forms are modified. Old subheading 3906.60 for PET in primary form, which was subdivided based on whether it was packaging grade or not (i.e., intrinsic viscosity of 70-88 deciliters/gram), is eliminated. PET in primary form is now moved to new subheadings 3907.61.00 and 3907.69.00, with the former covering PET with a viscosity number of 78 ml/g or higher, and the latter covering all other PET in primary form.

Amino-resins. Crude and polymeric MDI amino-resins are given their own tariff provision. Old subheading 3909.31.00 for “other amino-resins” (i.e., other than urea, thiourea and melamine resins) is eliminated, and replaced by new subheading 3909.31.00 for “[p]oly(methylene phenyl isocyanate) (crude MDI, polymeric MDI),” and new subheading 3909.39.00 for “other” amino-resins.

New pneumatic tires. Classification of new pneumatic tires (other than for cars, trucks, motorcycles, aircraft and bicycles) is overhauled, with subheadings 4011.60-69 for “herring bone” tread tires deleted and new subheadings inserted in their place for tires “of a kind used on agricultural or forestry vehicles and machines” (4011.70.00) and tires “of a kind used on construction, mining or industrial handling vehicles and machines” (4011.80). The old “other” subheadings (4011.92 to 4011.99), which previously included the new subheadings for agricultural, forestry, construction and industrial tires, are deleted and replaced by the single new subheading 4011.90.

New subheading 4011.70.00 for agricultural or forestry vehicle tires is divided into statistical suffixes for tires with a herring-bone or similar tread (4011.70.0010) and with other tread (4011.70.0050). The new category for construction, mining or industrial handling vehicle tires in 4011.80 is divided into tires with a herring bone tread (4011.80.10), non-herring bone radial tires (4011.80.20) and non-herring-bone, non-radial tires (4011.80.80). Each of those subheadings is further subdivided into statistical suffixes based on rim size. The new residual subheadings for other new pneumatic tires of rubber -- 4011.90.10, 4011.90.20 and 4011.90.80 depending on whether herring-bone, other radial, or neither – include statistical suffixes for golf-cart tires.

Wood and Wood Products

New provisions are added to Chapter 44 provisions for wood and wood products related to the classification of tropical woods and bamboos. On the other hand, a list defining the species considered tropical woods for tariff classification purposes is eliminated. Most of these changes implement modifications to the Harmonized System that the WCO said "enhance the coverage of wood species and get a better picture of trade patterns,” allowing better monitoring of tropical woods and bamboo products.

Tropical wood. The 2017 HTS eliminates references to a list of what is considered “tropical wood” formerly in subheading note 2 to Chapter 44, instead referring directly to “tropical wood” in the text of tariff provisions without any definition of the term. Subheading note 2 to Chapter 44 is deleted, and in several places in the tariff schedule the text “of tropical wood specified in subheading note 2 to this chapter” is changed to “of tropical wood.” The change results in a renumbering of subheadings that are affected by the change, as follows (statistical suffixes at the 10-digit level remain the same unless otherwise specified):

Tropical wood flooring, siding and moldings. New subheadings 4409.22XX are added for wood continuously shaped of tropical wood. New subheading 4409.22.05 covers wood continuously shaped along any of its ends from tropical woods, with statistical breakouts for end-matched wood flooring of jatoba (4409.22.0515), ipe (4409.22.0525), Santos’ mahogany (4409.22.0535), cumaru (4409.22.0545), end-matched wood flooring of other tropical woods (4409.22.0555) and other wood continuously shaped along its ends, besides wood flooring (4409.22.0590). All are dutiable at 3.2%.

New subheading 4409.22.10 is added for tropical wood siding. New subheading 4409.22.25 is added for wood flooring not shaped on its ends. Tropical wood moldings are now classified under new subheading 4409.22.40 for standard wood moldings, and 4409.22.50 for other moldings. Tropical wood dowel rods are now classifiable under subheading 4409.22.60 for pain dowel rods, and 4409.22.65 for dowel rods sanded, grooved or otherwise advanced in condition. All of these subheadings are duty-free.

Provisions under old subheading 4409.29.05 for end-matched wood flooring of tropical non-coniferous woods of jatoba, ipe, Santos’ mahogany and cumaru, now classifiable in subheading 4409.22.05, are eliminated. End-matched wood flooring of non-coniferous woods other than bamboo and tropical woods are now classified in subheading 4409.29.0655. Other non-coniferous continuously shaped woods, other than bamboo and tropical woods, are still classified in 4409.29, but are renumbered as follows, with statistical suffixes at the 10-digit level remaining the same:

Bamboo flooring panels. Assembled flooring panels of bamboo are broken out into new subheading 4418.73. New subheadings are created for solid bamboo panels for mosaic floors (4418.73.10), and other bamboo panels for mosaic floors with a face ply over 6 mm (4418.73.20) or less than 6 mm (4418.73.30). Multilayer bamboo assembled flooring panels that, not for mosaic floors, are now classified in new subheading 4418.73.40 if they have a face ply thicker than 6 mm, and in subheadings 4418.73.60 and 4418.73.70 if the face ply is 6 mm or thinner, depending on whether they are made of unidirectional bamboo or not, respectively. Other bamboo assembled flooring panels, i.e., not for mosaic floors or multilayer, are classifiable in new subheading 4418.73.90.

Previous provisions for assembled flooring panels not made of bamboo, previously classifiable under subheadings 4418.71 and 4418.72, are eliminated, and replaced by subheading 4418.74 for panels for mosaic floors, and 4418.75 for multilayered panels, other than for mosaic floors. Eight and 10-digit suffixes remain the same for new subheading 4418.74 (i.e., solid mosaic floor panels previously classifiable at 4418.71.1000 are now classifiable at 4418.74.1000). Subheading 4418.75 is now broken out into subheadings 4418.75.40 for multilayer panels not for mosaic floors with a face ply over 6 mm and 4418.75.70 for panels with a face ply under 6 mm. A previous provision for bamboo panels 4418.72.91 is eliminated entirely. The residual category for “other” assembled flooring panels (i.e., not of bamboo, not for mosaic floors and not multilayer) is renumbered to 4418.79.01.

Other bamboo builders’ joinery. The residual category for “other” builders’ joinery not classifiable elsewhere in heading 4418 is broken out into subheadings for bamboo at 4418.91 and subheadings for other woods at 4418.99. Old subheadings under 4418.90 are eliminated. Each new category is divided into subheadings for drilled or notched lumber studs (4418.91.10 and 4418.99.10). “Other” builders’ joinery other than drilled or notched lumber studs is classifiable in new subheadings 4418.91.90 and 4418.99.90, retaining the same statistical suffixes as the old subheading 4418.90.46 (i.e., bamboo roof trusses are now classifiable at tariff number 4418.91.9020, and non-bamboo roof trusses are now classifiable at tariff number 4418.99.9020).

Bamboo tableware and kitchenware. Heading 4419 for tableware and kitchenware is broken out into categories for bamboo tableware and kitchenware, and other tableware and kitchenware of wood. Bamboo bread boards and chopping boards are now classifiable in new subheading 4419.11.00 (3.2%), bamboo chopsticks in subheading 4419.12.00 (3.2%), bamboo forks and spoons in subheading 4419.19.10 (5.3%), and other bamboo tableware and kitchenware in subheading 4419.19.90 (3.2%). Other tableware and kitchenware of wood, previously classifiable at subheading 4419.00, is moved to 4419.90.10 (5.3%) for forks and spoons, and 4419.90.90 (3.2%) for other tableware and kitchenware of wood, not of bamboo.

Other bamboo articles of wood. Also broken out into categories for bamboo and categories for other woods is heading 4412, the residual heading of Chapter 44. Bamboo articles are put in new subheading 4421.91. Non-bamboo “other” articles are moved to new subheading 4421.99.

Wood dowel pins of bamboo are now classifiable in subheading 4421.91.10 for plain dowel pins, and 4421.91.20 for wood dowel pins that have been sanded, grooved or otherwise advanced in condition. Otherwise, the structure of subheadings 4421.91 and 4421.99 remain the same as the old subheading 4421.90. For example, assembled fence sections, formerly classifiable at tariff number 4421.90.7020, are now classifiable at tariff number 4421.91.7020 if made of bamboo, and 4421.99.7020 if not. Likewise, toothpicks formerly classifiable at tariff number 4421.90.5000 are now classifiable at tariff number 4421.91.5000 if made of bamboo, and 4421.99.5000 if not.

'Newsprint' Definition Changed in Chapter 48 for Paper Products

The definition of newsprint in Chapter 48 of the HTS is changed to comply with changes to the WCO Harmonized System. Previously newsprint had to be in strips or rolls at least 36 centimeters wide or in sheets at least 36 cm on one side, and 15 cm on the other. The new definition of newsprint, which the WCO says reflects the advent of smaller newspapers, is sheets or strips at least 28 cm wide, or sheets at least 28 cm on one side and 15 cm in the other.

The size criteria were previously listed in note 8 to Chapter 48, and had applied only to newsprint in heading 4801. The criteria are moved to note 4 to Chapter 48, which defines “newsprint” throughout Chapter 48. Subheadings that may be affected by the change are renumbered. Subheading 4801.00.00 becomes new subheading 4801.00.01, old subheading 4802.61.30 becomes new subheading 4801.61.31, and old subheading 4802.62.60 becomes new subheading 4802.62.61. The organization of each new subheading remains the same, with each retaining identical statistical suffixes as the renumbered subheadings.