The International Trade Commission is asking for input by June 18 on its newly initiated investigations into the probable economic effect on U.S. industry and consumers of eliminating tariffs on a wide range of products from the EU. The investigations were requested by the U.S. Trade Representative (see 13032801, and will be used to assist in negotiations for the U.S.-EU Transatlantic Trade and Investment Partnership Agreement, announced in March (see 13032105).
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.
The American Association of Exporters and Importers (AAEI) joined the chorus of customs groups asking for removal of AD/CVD section from the still-under-discussion House customs reauthorization bill, saying the section should be removed “so it does not slow down passage of this important legislation.”
The U.S. Court of Appeals for the Federal Circuit affirmed CBP’s Harmonized Tariff Schedule classification of Kahrs International’s engineered wood flooring as plywood, rather than parquet panels or builder’s joinery. The Court of International Trade had originally sustained CBP’s classification in 2009. Kahrs argued that its engineered wood flooring did not meet the commercial meaning of plywood. But CAFC said the commercial definition of a product is irrelevant for tariff provisions that describe products by name rather than use.
The U.S. Trade Representative requested International Trade Commission investigations into the economic effects of the elimination of tariffs on goods from the EU, both in general and with a specific focus on agricultural products. The reports would be used to assist the USTR in negotiating the Transatlantic Trade and Investment Partnership agreement with the EU, formally announced March 20 (see 13032105).
Customs reauthorization legislation, introduced March 22 in the Senate, aims to streamline CBP’s drawback process through electronic claim filing and the establishment of objective eligibility requirements. The Trade Facilitation and Trade Enforcement Reauthorization Act of 2013, sponsored by Senate Finance Committee leaders Max Baucus, D-Mont., and Orrin Hatch, R-Utah, is very similar to CBP reauthorization legislation previously introduced in both the House and Senate (see 13032610).
The Committee for the Implementation of Textile Agreements added certain cotton corduroy fabric to the list of items not available in commercial quantities in a timely manner under Annex 3-B of the U.S.-Colombia Trade Promotion Agreement (CTPA) Implementation Act. The fabric, which is classified in subheadings 5801.22.1000 and 5801.22.9000 of the Harmonized Tariff Schedule, was added in unrestricted quantities. Effective March 27, this cotton corduroy fabric may be sourced from outside the CTPA member countries without affecting eligibility for CTPA treatment.
The Committee for the Implementation of Textile Agreements added a certain three-thread fleece fabric with soft hand pigment to the list of items not available in commercial quantities in a timely manner under Annex 3.25 of the Dominican Republic-Central America-U.S. Free Trade Agreement Implementation Act (CAFTA-DR). The fabric, which is classified in subheading 6001.21 of the Harmonized Tariff Schedule, was added in unrestricted quantities. Effective March 25, this three-thread fleece fabric with soft hand pigment may be sourced from outside the DR-CAFTA member countries without affecting eligibility for DR-CAFTA treatment.
The Court of International Trade denied Riddell's challenge to CBP's classification of its football pants, jerseys, and girdles, finding the goods to be correctly classified as apparel and not sports equipment. The football uniform components were imported without pads, and as goods are classified in their condition as imported, they did not qualify as sports protective equipment, the court said.
The Court of International Trade sustained CBP’s Harmonized Tariff Schedule classification of plaintiff Link Snacks’ beef jerky, ruling that the product was correctly classified in the HTS subheading for cured beef. Link Snacks had argued that beef jerky is defined by the drying process used in its manufacture, not the curing process. The court was sympathetic to Link Snacks’ argument, but in the end found that it could not go against the plain meaning of the terms in the HTS.
A recently introduced House bill aims to amend the Harmonized Tariff Schedule, by extending the production certificate program to 2025. The program allows refunds of duties on certain articles produced in U.S. insular possessions. Under current law, the program is only extended through 2015. The bill was introduced March 12 by Rep. Donna Christensen, D-V.I. (here).