ITC Issues Revision 1 to 2017 HTS; Changes Took Effect July 1

International Trade Today is also republishing its table of the tariff reductions that take effect July 1 under the Information Technology Agreement (see 1707030038).

Recent GSP Review Results in Benefits for Travel Goods, Other GSP Changes

Many changes in the mid-year update to the HTS reflect the results of the U.S. Trade Representative’s 2016-17 review of the Generalized System of Preferences. Among other modifications to program eligibility, USTR for the first time granted GSP duty-free treatment to certain subheadings covering “travel goods” for all GSP beneficiaries. Last year, USTR had deferred its decision on giving travel goods full GSP treatment, allowing GSP claims only when imported from least-developed GSP beneficiaries. Travel goods added to GSP by USTR are as follows:

• 4202.11.00 -- Trunks, suitcases, vanity & all other cases, occupational luggage & like containers, surface of leather, composition or patent leather
• 4202.12.21 -- Trunks, suitcases, vanity and attache cases and similar containers, with outer surface of plastics
• 4202.12.40 -- Trunks, suitcases, vanity & attache cases, occupational luggage & like containers, surfaces of cotton, not of pile or tufted construction
• 4202.12.81 -- Trunks, suitcases, vanity & attache cases, occupational luggage and similar containers, with outer surface of MMF materials
• 4202.21.60 -- Handbags, with or without shoulder strap or without handle, with outer surface of leather, composition or patent leather, nesi, n/o $20 ea.
• 4202.21.90 -- Handbags, with or without shoulder strap or without handle, with outer surface of leather, composition or patent leather, nesi, over $20 ea.
• 4202.22.15 -- Handbags, with or without shoulder straps or without handle, with outer surface of sheeting of plastics
• 4202.22.45 -- Handbags with or without shoulder strap or without handle, with outer surface of cotton, not of pile or tufted construction or braid
• 4202.22.81 -- Handbags with or without shoulder strap or without handle, with outer surface of MMF materials
• 4202.31.60 -- Articles of a kind normally carried in the pocket or handbag, with outer surface of leather, composition or patent leather, nesi
• 4202.32.40 -- Articles of a kind normally carried in the pocket or handbag, with outer surface of cotton, not of pile or tufted construction
• 4202.32.80 -- Articles of a kind normally carried in the pocket or handbag, with outer surface of vegetable fibers, not of pile or tufted construction, nesi
• 4202.32.93 -- Articles of a kind normally carried in the pocket or handbag, with outer surface of MMF
• 4202.32.99 -- Articles of a kind normally carried in the pocket or handbag, with outer surface of other textile materials
• 4202.91.90 -- Cases, bags and containers nesi, other than golf bags, with outer surface of leather, of composition leather
• 4202.92.15 -- Travel, sports and similar bags with outer surface of cotton, not of pile or tufted construction
• 4202.92.20 -- Travel, sports and similar bags with outer surface of vegetable fibers, excl. cotton, not of pile construction
• 4202.92.31 -- Travel, sports and similar bags with outer surface of MMF textile materials
• 4202.92.39 -- Travel, sports and similar bags with outer surface of textile materials other than MMF, paper yarn, silk, cotton
• 4202.92.45 -- Travel, sports and similar bags with outer surface of plastic sheeting
• 4202.92.91 -- Bags, cases and similar containers with outer surface of textile materials, of MMF except jewelry boxes
• 4202.92.97 -- Bags, cases & similar containers with outer surface of sheeting of plastic materials, not containers for CDs or cassettes, or CD or cassette players
• 4202.99.90 -- Cases, bags and similar containers, nesi, with outer surface of vulcanized fiber or of paperboard

In addition, several other subheadings were also opened up to all GSP beneficiaries in the 2016-17 review, having previously been eligible for benefits only when imported from least-developed GSP countries. These subheadings are as follows:

• 1104.19.90 - “Other rolled or flaked grains”
• 2915.90.18 -- “Saturated acyclic monocarboxylic acids, nesoi”
• 3301.13.00 -- “Essential oils of lemon”
• 3809.93.50 -- “Finishing agents, dye carriers and other preparations used in leather and like industries, less than 5% by weight aromatic (mod.) substance(s)”
• 3912.20.00 -- “Cellulose nitrates (including collodions) in primary forms”

For all of these subheadings, the new tariff schedule reflects their full addition to GSP by changing the Special Program Indicator *(SPI) “A+” for these subheadings, which indicates least-developed beneficiary eligibility only, to “A,” meaning all GSP beneficiaries can qualify.

GSP country eligibility list. The list of GSP-eligible associations of countries in General Note 4(a) is amended to remove Bangladesh and Venezuela. Each country has already been deleted from the main list of GSP-eligible countries, but Venezuela had not been removed from the lists of GSP-eligible members of the Cartagena Group, and Bangladesh had not been from the South Asian Association for Regional Cooperation. This change takes effect on the date each country was removed from GSP: Jan. 1, 2017, for Venezuela, and Sept. 3, 2013, for Bangladesh.

Ineligible country-product pairs. Two new subheadings are added to the list in General Note 4(d) of country-product pairs ineligible for GSP benefits because imports exceeded competitive need limitations. These newly excluded subheadings are 2933.99.22 (heterocyclic aromatic or modified aromatic pesticides) from India, and 6801.00.00 (setts, curbstones and flagstones, of natural stone) from Turkey. SPIs listed for these subheadings in the tariff schedule are accordingly changed from “A” to “A*” to reflect that some GSP countries are ineligible.

All ineligible country-product pairs for Venezuela are removed from General Note 4(d), to reflect Venezuela’s removal from GSP eligibility as of Jan. 1, 2017. Subheadings throughout the tariff schedule are revised accordingly to change the GSP in the “Special” column 1 rate of duty column from A* (some GSP countries ineligible) to A (all GSP countries eligible).

Glycine removed from GSP. In its 2016-17 GSP review, USTR determined to remove eligibility for the program for glycine under subheading 2922.49.40.20. While that subheading was removed and replaced with new subheading 2922.49.43 (see below for more information), the new subheading continues to list the SPI “A” for GSP.

New General Statistical Note Defines ‘Certified Organic’ for HTS Purposes

New General Statistical Note 6 is added to the tariff schedule to define the term “certified organic” throughout the tariff schedule. The new note says that, for tariff classification purposes, the expression “certified organic” refers to “a fresh or processed agricultural product that is certified to”:

• The United States Department of Agriculture National Organic Program Regulation (7 CFR 205),
• The Canadian Organic Products Regulations (SOR/2006-338 COPR),
• The European Union (EU) Council Regulation (EC) No. 834/2007 and Commission Regulations (EC) No. 889/2008 and 1235/2008,
• 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),
• The Republic of Korea Act on Promotion of Environmentally-Friendly Agriculture and Fisheries and Management of and Support for Organic Food, and its implementing regulations for processed foods, or
• The Swiss Ordinance on Organic Farming and the Labeling of Organically Produced Products and Foodstuffs (910.18) and Federal Department of Economic Affairs, Education and Research (EAER) Ordinance on Organic Farming of 22 September 1997 (910.181) and its regulations.

Previously, the same definition had been included as a statistical note to chapters 4, 7, 8, 9, 10, 12, 15, 17 and 22. Those statistical notes are now amended to refer to new General Statistical Note 6.

AGOA SPI Added for Fortified Juices

SPI “D” is added to subheadings 2202.90.3600 and 2202.99.3700 for fruit or vegetable juices, fortified with vitamins or minerals, other than orange juice.

New Schedule B Numbers Added for Organic Food, Electric Generating Sets

Effective Jan. 1, the “Notice to Exporters list of Schedule B numbers that must be used for export reporting purposes is amended to add the following new Schedule B numbers”:

• 2005.10.0010 -- Homogenized vegetables, certified organic
• 2005.10.0090 -- Homogenized vegetables, other than certified organic
• 2007.10.0010 -- Homogenized fruit or nut preparations, certified organic
• 2007.10.0090 -- Homogenized fruit or nut preparations, other than certified organic
• 8502.39.0010 -- Electric generating sets powered by gas turbines, n.e.s.o.i.
• 8502.39.0090 -- Electric generating sets, n.e.s.o.i.

New Subheadings for Amino Acids

New subheadings 2922.49.43 for glycine (aminoacetic acid) and 2922.49.49 (other amino acids) are added to the tariff schedule. Such compounds had previously been classifiable in the now-eliminated subheading 2922.49.40. New subheading 2922.49.49 is subdivided into statistical suffixes 2922.49.49.10 for alanine, 2922.49.49.15 for l-aspartic acid, and 2922.49.49.50 for “other” other amino acids.

Duty Free Treatment for Parts of Radar and Navigational Equipment

SPI “C” is added to subheading 8529.90.95 for assemblies and subassemblies of radar, radio navigational aid or radio remote control apparatus, consisting of two or more parts or pieces fastened or joined together, so that the subheading now qualifies for duty-free treatment under the Civil Aircraft Agreement.

Statistical Reporting Changes

The July 1 update to the HTS also includes a series of changes to 10-digit statistical suffixes throughout the tariff schedule. Updated provisions affect classification of cuts of beef, organic grains, jadeite and rubies, iron and steel bars and rods and paint roller frames, among other things. The full set of changes is as follows:

More detailed provisions for cuts of beef. New statistical breakouts are added for cuts of beef in headings 0201 and 0202. The new 10-digit statistical suffixes are added to subheadings 0201.20.50 (unprocessed, fresh or chilled, bone-in cuts of beef, other than carcasses or half-carcasses, subject to U.S. Note 3 to Chapter 2), 0201.30.50 (unprocessed, fresh or chilled, boneless cuts of beef, other than carcasses or half-carcasses, subject to U.S. Note 3 to Chapter 2), 0202.20.50 (unprocessed, fresh or chilled, frozen bone-in cuts of beef, other than carcasses or half-carcasses, subject to U.S. Note 3 to Chapter 2) and 0202.30.50 (unprocessed, fresh or chilled, frozen boneless cuts of beef, other than carcasses or half-carcasses, subject to U.S. Note 3 to Chapter 2), as follows:

• 02XX.XX.XX25 Rib cuts
• 02XX.XX.XX35 Chuck cuts
• 02XX.XX.XX45 Loin cuts
• 02XX.XX.XX55 Brisket cuts
• 02XX.XX.XX65 Hip cuts
• 02XX.XX.XX75 Flank or plate cuts
• 02XX.XX.XX85 Other

New ‘certified organic’ tariff provisions. Statistical suffixes are added for the following foods and agricultural products when certified organic:

• Oats (other than seeds) -- 1004.10.9010
• Quinoa -- 1008.50.0010
• Soybean flours and meals -- 1208.10.0010

Highbush blueberries. New text is added to tariff provisions for fresh cultivated blueberries under subheading 0810.40.00, frozen cultivated blueberries in subheading 0811.90.20, and dried cultivated blueberries in subheading 0813.40.20, to clarify that these subheadings also include highbush varieties of blueberries.

Instant tea. New statistical suffix 2101.20.2010 is added for “instant tea” under tariff provisions for extracts, essences and concentrates of tea or mate.

Organo-phosphorous derivatives. New statistical suffixes are added to subheading 2931.39.00, the residual category for organo-phosphorous derivatives not elsewhere listed, for compounds “containing a phosphorus atom to which is bonded one methyl, ethyl, n-propyl or isopropyl group, but no other carbon atoms” (2931.39.0012), 2-Amino-4-[hydroxy(methyl)phosphonoyl] butanoic acid (glufosinate) and its salts and ester (2931.39.0015) and other organo-phosphorous derivatives not elsewhere listed (2931.39.0018). These compounds had previously been listed in now-eliminated provisions under subheading 2931.90.90.

Provisions removed for jadeite, rubies. Statistical breakouts for rubies and jadeite previously included throughout chapter 71 are removed from the tariff schedule. This change affects statistical suffixes for subheadings covering precious stones and jewelry at 7103.10.20, 7103.10.40, 7103.99.10, 7103.99.50, 7113.11.20, 7113.11.50, 7113.19.21, 7113.19.25, 7113.19.29, 7113.19.50, 7116.20.05 and 7116.20.15. A ban on imports of jadeite and rubies from Myanmar ended in 2016.

Iron and steel bars and rods. The revised tariff schedule includes more detailed dimensional breakouts for bars and rods of iron or nonalloy steel of heading 7214. New statistical suffixes 7214.91.0016 and 7214.91.0020 are added for “other” (i.e., not forged, rebar or of free-cutting steel) rectangular (not square) bars and rods with a maximum cross section of less than 152mm, and of 152 or more, respectively. New suffixes 7214.99.0021 and 7214.99.0026 are added for rounds containing less than 0.25 percent carbon with a diameter of 76mm to 152mm, and rounds with a diameter over 152mm, respectively. New suffixes 7214.99.0031, 7214.99.0036 and 7214.99.0040 are added for rounds containing more than 0.25 percent carbon, but less than 0.6 percent carbon, with a diameter of less than 76mm, 76mm to 152mm, and rounds with a diameter over 152mm, respectively.

Alloy steel bars and rods. New statistical suffixes 7228.30.8041 and 7228.30.8045 are added for “other bars and rods” of alloy steel, not of high-speed tool or silico-manganese steel, with a diameters of 76 to 152 mm and 152 to 228 mm, respectively.

Paint roller frames. New statistical suffix 7326.20.0055 is added for paint roller frames of iron or steel wire. The subheading for “other” articles of iron or steel wire is renumbered to 7326.20.0090. The item description for subheading 7326.90.8675 is amended to clarify that it only covers iron or steel paint roller frames that are not made of wire.

Steam powered electric generating sets. New statistical suffix 8502.39.0040 is added for “other” electric generating sets (i.e., not having an internal combustion engine or wind powered) that are powered by steam turbine. The residual category for “other” “other” electric generating sets is renumbered 8502.39.0080.

Metal mattress bases. New statistical suffix 9403.20.0022 is added for metal “mattress bases with legs, having the characteristics of a stationary (not mechanically adjustable) bed frame, of a width exceeding 94.44 cm, of a length exceeding 184.15 cm and of a depth exceeding 8.89 cm.”

Technical Corrections

Subheading 4409.22.65 for sanded or otherwise processed dowel rods of tropical woods now includes a previously omitted column 2 duty rate of 33 1/3%. Subheading 6907.30.10 for unglazed ceramic mosaic cubes now includes a previously omitted column 2 duty rate of 55%. A percentage sign is changed to the word “percent” in references to lead content requirements in descriptions of subheadings 7213.20.00, 7214.30.00 and 7215.10.00.