The International Trade Commission on Dec. 19 released its report on the probable effects of proposed changes to the NAFTA rules of origin. The modifications were agreed upon in April 2012 by the NAFTA Free Trade Commission, which comprises representatives of the U.S., Canadian, and Mexican governments, and mark the fourth time the countries have negotiated such wide-ranging rules of origin amendments through the “Track IV” Process. The U.S. Trade Representative requested the ITC conduct the investigation in March (see 13031524).
Harmonized Tariff Schedule
The Harmonized Tariff Schedule (HTS) is a reference manual that provides duty rates for almost every item that exists. It is a system of classifying and taxing all goods imported into the United States. The HTS is based on the international Harmonized System, which is a global standard for naming and describing trade products, and consists of a hierarchical structure that assigns a specific code and rate to each type of merchandise for duty, quota, and statistical purposes. The HTS was made effective on January 1, 1989, replacing the former Tariff Schedules of the United States. It is maintained by the U.S. International Trade Commission, but the Customs and Border Protection of the Department of Homeland Security is responsible for interpreting and enforcing the HTS.
Rack Room Shoes on Dec. 4 petitioned the Supreme Court to hear its case on gender discrimination by duty rates in the Harmonized Tariff Schedule. The challenge to gender-specific duty rates on footwear and apparel was dismissed by the Court of International Trade and Court of Appeals for the Federal Circuit on its way to the Supreme Court, because they found Rack Room didn't prove the Congress intended to discriminate. Rack Room argues those courts set so high a bar in equal protection cases that discrimination challenges to laws would become nearly impossible.
Arch Chemicals on Dec. 18 requested new antidumping and countervailing duties on calcium hypochlorite from China (A-570-008/C-570-009). Arch Chemicals alleges underselling and illegal subsidization by Chinese producers of the pool cleaner is rapidly taking U.S. market share and injuring U.S. industry.
The Container Store on Dec. 10 filed suit at the Court of International Trade in an attempt to get CBP to follow a 2011 court ruling that classified parts for its elfa hanging modular storage system as furniture. According to the complaint, CBP headquarters instructed port officials to hold off on reliquidation of entries covered under the court ruling. The agency also refused to concede defeat in other lawsuits covering the same product, because it apparently still believes the elfa top tracks and hanging standards should be classified as metal mountings despite CIT’s decision, the complaint said.
The Court of International Trade denied an importer’s challenge to CBP’s tariff classification of its valve motors for heating, ventilation, and air conditioning (HVAC) systems. Belimo Automation said a microchip added to the electric motors that allows for some independent action means the product is classifiable as a regulating and controlling instrument. But the court affirmed CBP’s finding that the product is still an electric motor because it doesn’t measure the variable it’s regulating.
The Commerce Department issued Federal Register notices on its recently initiated antidumping and countervailing duty investigations on 1,1,1,2-Tetrafluoroethane from China (A-570-998/C-570-999). The agency will determine whether imports of the air conditioner refrigerant from China are being sold in the U.S. at less than fair value or illegally subsidized.
CBP said its Harmonized System Update 1305 was created Dec. 3, containing 37,016 ABI records and 6,433 harmonized tariff records. The update contains modifications due to annual special program staged rate reductions. Adjustments required by the verification of the 2013 Harmonized Tariff Schedule (HTS) are also included, CBP said in a CSMS message. The modified records can be retrieved electronically via the procedures indicated in the CATAIR. Further information: Jennifer Keeling, Jennifer.Keeling@dhs.gov.
CBP posted new CATAIR (Customs and Trade Automated Interface Requirements) as part of the entry summary validations recently added to the Automated Commercial Environment (ACE), the agency said in CSMS message. The CATAIR information (here) relates to a new validation capability meant to make sure an importer's estimated duty conforms to the Harmonized Tariff Schedule when filing entries in ACE (see Ref:13111418).
The Commerce Department issued a Federal Register notice on its recently initiated antidumping duty investigations on non-oriented electrical steel (NOES) from China, Germany, Japan, South Korea, Sweden, and Taiwan (A-570-996, A-428-843, A-588-872, A-580-872, A-401-809, A-583-851). The agency will determine whether imports of the subject merchandise are being, or are likely to be, sold in the U.S. at less than fair value. NOES is a steel product used in the production of large and small motors, generators, lighting ballasts, and ignition coils, the petition said.
CBP added "Simple Duty Calculation Validations" on the Automated Commercial Environment (ACE) Entry Summary on Nov. 13, the agency said in a CSMS message. The validations ensure "that an Entry Summary is not accepted in ACE if the importer's estimated duty does not conform to the rates and rules as specified in the [Harmonized Tariff Schedule]," it said. The CSMS message (here) lists the disposition codes and condition text will be used in the response messages from ACE.