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.
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.
Imports of eligible products from Cote d’Ivoire now qualify for textile and apparel benefits under the African Growth and Opportunity Act (AGOA), according to the U.S. Trade Representative. The announcement, which makes changes to the Harmonized Tariff Schedule to accommodate Cote d'Ivoire's inclusion in the list of AGOA countries, is effective March 19. The country has adopted an effective visa system and related procedures to prevent unlawful transshipment of textile and apparel articles and the use of counterfeit documents connected to shipping such articles, USTR said. The West African country is also making substantial progress toward implementing and following the customs procedures required by AGOA. Those procedures assist customs in verifying product origin. Importers claiming preferential tariff treatment under AGOA for entries of textile and apparel articles should ensure they meet applicable visa requirements., USTR said.
The U.S. government is appealing a Court of International Trade ruling on the Harmonized Tariff Schedule classification of GRK Canada’s screws, according to a March 15 docketing notice. In January, the court found in favor of GRK Canada’s proposed classification as “self-tapping screws,” dutiable at 6.2 percent (see 13011528). CBP had originally classified them as “other wood screws,” dutiable at 12.5 percent. According to CIT, the screws were both self-tapping screws and wood screws, but should be classified as self-tapping screws under General Rule 3(c) as the subheading occurring last in numerical order.
The Obama administration is considering extensive changes to NAFTA rules of origin, according to a U.S. Trade Representative request for an International Trade Commission investigation into the amendments. The ITC received the letter March 14. The changes 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 government of Canada issued the following trade-related notices for March 8 (Note that some may also be given separate headlines.)
CBP posted an updated version of its notice announcing that the next customs broker license exam will be on Wednesday, April 3. The notice provides details about the materials being tested.
CBP issued a CSMS message announcing the issuance of Harmonized System Update 1302 on changes to the 2013 Harmonized Tariff Schedule. This update contains 941 ABI records and 102 harmonized tariff records. This update contains modifications made as a result of the USDA sugar certificate automation process.. The modified records are currently available to all ABI participants and can be retrieved electronically via the procedures indicated in the CATAIR. Contact Jennifer Keeling via email at Jennifer.Keeling@dhs.gov for all other questions.
The Court of International Trade dismissed Dependable Packaging Solutions’ classification challenge, ruling that CBP correctly classified the company’s vases in the Harmonized Tariff Schedule as decorative glassware. Dependable argued that because it sold its vases to mass-market flower packing houses, where they were filled and sold to retailers for final sale as a unit, they should have been classified as glass containers for packaging. Noting that the relevant tariff headings referred to principal use, the court disagreed because it found no difference between Dependable’s vases and others sold directly to consumers for decorative use.
A recently introduced bill would raise the duty rate for "polyurethane sponges" in Harmonized Tariff Schedule subheading 3821.13.50 and "steel wool cleaning pads" in subheading 7323.10.00. The duty rate would increase to 6.5 percent (from 4.2 percent) for the sponges and to 20 percent (from free) for the cleaning pads. The bill would also add special rates of duty for the pads to continue duty free entry for several free trade agreements. The Creating Manufacturing Jobs and Promoting Fair Trade Act (HR-734) was introduced Feb. 14 by Reps. Steve Stivers (R-Ohio) and Gary Peters (D-Mich.).
The U.S. and Europe will begin an 18-month process to agree on a "comprehensive Transatlantic Trade and Investment Partnership with the European Union," President Obama said in his state of the union address Feb. 12. The goal is an agreement that goes beyond traditional tariff and trade issues, such as would be in a Free Trade Agreement, officials said Feb. 13, and include such things as regulations and standards that can be barriers to trade, as well as intellectual property rights.