Harmonized Tariff Schedule

Just because a pointy rod appears to be a drill bit doesn’t mean it should be classified as one, said CBP in a ruling issued in May that overturned the port’s classification of “high speed steel drill blanks” imported by MC Tubular Products. CBP Minneapolis had originally classified the pointed steel rods intended for making drill bits as finished drill bits under Harmonized Tariff Schedule heading 8207. But noting that the point of the rod is only a chamfer that is completely ground off before the drill bit’s actual point is applied, CBP ruled that the steel rods are not “blanks” classifiable in their intended final form as drill bits, but are instead bars and rods of high speed steel classifiable in heading 7228.

Steel baluster and newel fasteners imported by Colonial Elegance are subject to antidumping duties on steel threaded rod from China (A-570-932), said the Commerce Department in a scope ruling issued Aug. 1. The three models of fasteners subject to the scope inquiry meet all of the characteristics in the scope, and the fact that the Harmonized Tariff Schedule subheading for the fasteners isn’t listed in the scope is irrelevant, said Commerce.

Rep. Bill Owens, D-N.Y., introduced legislation on July 30 to amend the Harmonized Tariff Schedule (HTS) to liberalize tariffs on certain knitted or crocheted apparel goods and accessories exported for purposes of processing abroad and then re-imported into the U.S. The bill, HR-5291, would add HTS subheadings that allow the import of such goods to enter the U.S. market at the duty rate and valuation of the initially exported products, even if the import contains added materials from other U.S. exports. The legislation currently has no co-sponsors.

Recent trade-related bills introduced in Congress include:

The World Customs Organization recently announced the completion of the new version of its Harmonized System (HS) tariff schedule. The body made over 200 changes to tariff subheadings and notes (here), including modernizing changes such as new provisions for light-emitting diode (LED) lamps, hybrid cars and buses, and the removal of any provision for typewriters. Other changes affect the classification of tropical woods, bamboo and rattan; mosquito nets; monopods, bipods, and tripods; and the distinction between sports equipment in Chapter 95 and sports apparel in Chapters 61 and 62. Adopted by the WCO Council in June, the changes will enter into force on Jan. 1, 2017. As a signatory, the U.S. must amend the Harmonized Tariff Schedule by that time to reflect the changes to the international classification scheme. The U.S. and other WCO members now have six months to notify the international organization of objections before changes take effect.

The World Customs Organization recently announced the completion of the new version of its Harmonized System (HS) tariff schedule. The body made over 200 changes to tariff subheadings and notes (here), including a more detailed scheme for the classification of seafood imports and hazardous chemicals. Adopted at by the WCO Council in June, the changes will enter into force on Jan. 1, 2017. As a signatory, the U.S. must amend the Harmonized Tariff Schedule by that time to reflect the changes to the international classification scheme. The U.S. and other WCO members now have six months to notify the international organization of objections to any changes before they take effect.

The Commerce Department issued Federal Register notices on its recently initiated antidumping and countervailing duty investigations on passenger vehicle and light truck tires from China (A-570-016/C-570-017). The agency will determine whether imports of the tires are being sold in the U.S. at less than fair value or illegally subsidized. The United Steelworkers trade union requested the investigations on June 3, alleging that, since safeguard duties on Chinese tires expired in 2012, dumped and subsidized Chinese tires have flooded the U.S. market and hurt U.S. workers (see 14060402).

CBP is extending the comment period to Aug. 20 for an existing information collection for entry summaries. CBP proposes to extend the expiration date of this information collection with no change to the burden hours.

The Census Bureau updated the Harmonized Tariff Schedule in the Automated Export System (AES). The system will accept shipments with outdated codes during a 30-day grace period following the expiration date of the code. After that period concludes, AES will generate a fatal error message when outdated codes are filed. AESDirect will also accept shipments during the grace period. AESPcLink users need to update their AESDirect code tables to reflect the changes, Census said. Exporters are able to download the HTS table (here) and the current list of HTS codes that are invalid for AES (here).

Frozen tempura-fried vegetables are classifiable in the Harmonized Tariff Schedule as prepared vegetables, not other “food preparations,” said the U.S. Court of Appeals for the Federal Circuit on July 3 as it affirmed a lower court ruling. The importer of the vegetables, R.T. Foods, claimed that the processing of the vegetables, including battering and frying, took it out of the prepared vegetables category. But CAFC said the term “prepared vegetables” completely describes R.T. Foods’ tempura fried vegetables, so the product can’t be classified in a “catch all” provision for other food preparations.