2020 U.S. Harmonized Tariff Schedule Guide

International Trade Today is providing a summary of changes made since the last revision to the online HTS (HTS 2019 Rev. 20). For a full list of changes since the last paper edition of the HTS was published on Jan. 1, 2019, see the ITC's change record (note that some changes to units of quantity are missing). Also included in this guide is a CBP list of the changes to units of quantity for 850 10-digit subheadings that were included in the 2020 Basic Edition.

US-Japan Agreement Added to Tariff Schedule, but ROOs Missing

The 2020 HTS implements the U.S.-Japan “minideal” that became effective Jan. 1. New special program indicator (SPI) “JP” is added to General Note 3(c)(i) for the “Trade Agreement Between the United States and Japan.”

New General Note 36. The record of changes in the 2020 Basic Edition says a new General Note 36 is added to the tariff schedule, with rules of origin for the U.S.-Japan trade agreement. However, technical issues with the ITC's internal electronic systems prevented the update from actually occurring. The ITC was working on the issue as of Jan. 7, and had posted a document outlining the new general note to its website. The new general note sets procedures for claims for preferential treatment under the U.S.-Japan agreement.

New subchapter XXI to chapter 99. Also outlined in that document are changes to chapter 99 for the U.S.-Japan deal that should have been added to the tariff schedule but have been delayed due to the same technical issues. U.S. Note 1 to new subchapter XXI explains that the subchapter includes "modifications of the provisions of the tariff schedule established pursuant to the Trade Agreement between the United States and Japan." New subheadings 9921.01.01 and 9921.01.02 set special duty rates for parts of automotive air conditioners and parts of other air conditioners, respectively. The ITC also plans to add a table of tariff changes under the deal to chapter 99.

Japan added to beef TRQ. Additional Note 3 to chapter 2 is amended to add Japan to the list of countries eligible for the beef TRQ under subheadings 0201.10.10, 0201.20.10, 0201.20.30, 0201.20.50, 0201.30.10, 0201.30.30, 0201.30.50, 0202.10.10, 0202.20.10, 0202.20.30, 0202.20.50, 0202.30.10, 0202.30.30 and 0202.30.50. The maximum amount that may be entered from Japan under the TRQ is 200 metric tons, well below the limits established for other countries with individual allocations (see 1912270025).

AGOA Changes Include Removal of Cameroon, Other Eligibility Changes

Cameroon is deleted from the list of countries eligible for benefits under the African Growth and Opportunity Act under General Note 16(a) to reflect the country’s removal from the program. USTR announced the change in October, citing extra-judicial killings, unlawful detention and torture by the Cameroonian military (see 1910310058). Cameroon is also removed from other AGOA provisions in the tariff schedule.

The 2020 HTS also implements the termination of the eligibility of Niger, the Central African Republic and the Gambia for Section 112 AGOA textile benefits, due to a finding that the three countries have not established effective visa systems and related customs procedures to prevent transshipment. Niger, the Central African Republic and the Gambia are removed from the list of countries eligible for AGOA textile benefits under note 1 to subchapter XIX of Chapter 98.

At the same time, the 2020 HTS adds Guinea-Bissau and Niger to the list of lesser developed AGOA beneficiaries eligible for further Section 112(c) textile benefits under note 2(d) to subchapter XIX of Chapter 98. That note specifies that goods must be listed in both notes 1 and 2(d) to receive the lesser developed country benefits, so neither Niger nor Guinea-Bissau is immediately eligible.

UOQ Changes Throughout Tariff Schedule

Changes in the 2020 HTS include a lengthy list of new units of quantity for tariff provisions that had previously been assigned the “X” UOQ. This latest update completes the elimination of UOQ "X" from the HTS, as required to implement drawback provisions of the Trade Facilitation and Trade Enforcement Act of 2015. Previously, in the 2019 HTS, the ITC had changed all instances of UOQ "X" for dutiable tariff provisions. This final update in the 2020 HTS changes all instances of UOQ "X" for duty-free subheadings. Provisions with UOQ "X" remain in the Notice to Exporters. See the appendix to this guide for a full list of the changes, as detailed by CBP.

General Statistical Note 4(a), which specifies that “X” in the unit of quantity column “means that no quantity (other than gross weight) is to be reported,” also appears slated for removal from the tariff schedule, according to the change record. But the note is still included in the General Notes to the 2020 Basic Edition as of Jan. 7 (potentially due to the same technical issues that caused the U.S.-Japan provisions to be omitted).

The new UOQ Dz Pcs also replaces the “doz pcs.” The change record says unit of quantity “Dz Pcs” should have been added to the list of unit of quantity abbreviations under General Statistical Note 4(d), but the new abbreviation was likewise not actually added.

Statistical Changes Mainly Affect Steel, Aluminum Products

Organic sugars. Subheading 1701.14.1000 for raw cane sugar, not containing flavoring or coloring matter and not specified in subheading note 2, is subdivided into new statistical breakouts 1701.14.1020 for organic sugar, and 1701.14.1040 for other such sugars. Likewise, subheading 1701.99.5000 for other (i.e., non-beet, non-raw cane) sugar is subdivided into new 10-digit subheadings 1701.99.5015 for organic sugar and pure sucrose, and 1701.99.5017 for other sugar and pure sucrose.

Hydrofluorocarbon blends. Statistical Note 2 to chapter 38 is amended to clarify hydrofluorocarbon blends that are classifiable in subheading 3824.78.0000. The new note says that, “for the purposes of statistical reporting number 3824.78.0020, the term 'hydrofluorocarbon refrigerant blends' consists of hydrofluorocarbon mixtures containing at least pentafluoroethane (R125) or difluoromethane (R32) or 1,1,1-trifluoroethane (R143a), mixed, with or without other ingredients.”

Steel bars and rods. Several tariff provisions covering iron and steel bars and rods are changed so that dimensional requirements now refer to the diameter “or cross section” of a given measurement. For example, subheading 7228.30.8015 now refers to certain bars and rods “with a diameter or cross section measuring” less than 76 mm. This change was also made to subheadings 7215.50.0016, 7215.50.0018, 7215.50.0020, 7215.50.0061, 7215.50.0063, 7215.50.0065, 7228.30.8041, 7228.30.8045, 7228.30.8070, 7228.50.5015, 7228.50.5040 and 7228.50.5070.

Aluminum billets. Subheading 7601.20.9045 is clarified to specify that it covers aluminum in billet form. Specifically, the subheading text now says: “Of uniform circular cross section throughout its length, the foregoing comprised of billets, not in coils.”

Aluminum industrial process scrap. Subheading 7602.00.0090, which covered aluminum waste and scrap, other than used beverage container scrap, is subdivided into new subheadings 7602.00.0091 for “industrial process scrap including turnings, borings, shavings, filings, clippings, chips and other manufacturing wastes and residues,” and 7602.00.0096 for “other” aluminum waste and scrap.

Aluminum heat-treatable alloys. New statistical breakouts are added for heat-traded industrial alloys of aluminum. Subheading 7604.21.00 for hollow profiles of aluminum alloys is subdivided into 7604.21.0010 for “heat-treatable industrial alloys of a kind described in statistical note 6 to this chapter,” with other hollow profiles now classifiable in subheading 7604.21.0090. Likewise, subheading 7604.29.1000 for “other profiles” of aluminum alloys is subdivided into subheading 7604.29.1010 for heat-treatable industrial alloys, and 7604.29.1090 for other alloys.

Subheading 7606.12.3091 for rectangular plates, sheets and strip of aluminum alloys, with a thickness of 6.3 mm or less (other than aluminum can stock) is subdivided in the same manner, with new subheading 7606.12.3091 covering heat treatable industrial allows described in statistical note 6, and 7606.12.3096 for “other” plates sheets and strip.

Statistical note 6 is amended so it now refers to the new subheadings. The amended statistical note now says, “for the purposes of statistical reporting numbers 7604.21.0010, 7604.29.1010, 7604.29.3060, 7604.29.5050, 7606.12.3025 and 7606.12.3091, 'heat-treatable industrial alloys' refers to aluminum containing by weight 3.0 percent or less of magnesium and 3.0 percent or less of silicon, and/or are designated as series 6xxx in the Aluminum Association’s specifications of registered alloys.”

Aluminum electrical conductors. Subheading 7614.90.20 for electrical conductors (without steel core, not fitted with fittings and not made up into articles) is subdivided into statistical provisions 7614.90.2030 for conductors with a cross-section area less than 240 mm2, and 7614.90.2060 for those with a cross-sectional area greater than or equal to 240 mm2.

Lock bodies with flexible cable. Subheading 8301.10.60 for padlocks, of cylinder or pin tumbler construction and not over 3.8 cm in width, is subdivided into new statistical breakouts 8301.10.6020 for “lock bodies containing hardened steel components with attached (or insertable) flexible cable composed of wire strands and hardened steel beads,” and 8301.10.6080 for other such padlocks.

Parts of oil well and oil field pumps. New 10-digit provisions are added to subheading 8413.91.90 for parts of oil well and oil field pumps of subheading 8413.50.0010 (i.e., reciprocating positive displacement pumps). New subheading 8413.91.9065 covers sucker rods for these pumps, and subheading 8413.91.9085 covers other parts of oil well and oil field pumps. New statistical note 1 to chapter 84 says that, “for the purposes of statistical reporting number 8413.91.9065, the term 'sucker rods' includes pony rods and polished rods, all designed for use in oil well and oil field related pumps.”

Parts of wind-powered generating sets. New statistical breakout 8503.00.9570 is added for parts of wind-powered electricity generating sets of subheading 8502.31. The former “other” subheading is renumbered as 8503.00.9580.

Camcorders. Subheading 8425.80.5010 for 8 mm camcorders is removed from the tariff schedule, as is subheading 8525.80.5020 for “other” camcorders. In their place, a single subheading is added as 8525.80.5015 that covers all camcorders.

Aluminum road wheels. Classification provisions for aluminum road wheels (not for non-road tractors and not for vehicles of subheading 8701.20 or heading 8702, 8704 or 8705) under subheading 8708.70.45 are given more detail. New 10-digit subheading 8708.70.4546 covers those aluminum road wheels “having a diameter of at least 57 cm but not more than 63 cm,” and subheading 8708.70.45.48 covers “other” aluminum road wheels.

Trailer wheels. Subheading 8716.90.5045 for wheels for trailers and other non-mechanically prepared vehicles (other than steel wheels 30-42 cm in diameter) is subdivided into provisions for wheels 57-63 cm in diameter of aluminum under new subheading 8716.90.5046, wheels of steel 57-63 cm in diameter under 8716.90.5047, and other such wheels under subheading 8716.90.5048.

Other Minor Changes and Technical Corrections

General Note 1 now refers to the correct number of general notes in the tariff schedule (i.e., goods that “are subject to duty or exempt therefrom as prescribed in general notes 3 through 36, inclusive”).