Harmonized Tariff Schedule

The Office of U.S. Trade Representative announced the results of the 2011 Annual Generalized System of Preferences (GSP) Review, in a Federal Register notice scheduled for publication July 12. It also scheduled public comments and a public hearing for new country practice petitions for Fiji, Indonesia, Iraq, and Ukraine, and announced the closure of the country practices review of Sri Lanka's worker rights practices, and the designation of Afghanistan as a member of the South Asian Association for Regional Cooperation (SAARC) for purposes of the GSP. Some specific results of the review:

CBP issued a CSMS message announcing the issuance of Harmonized System Update 1207 on changes to the 2012 Harmonized Tariff Schedule (HTS). This update contains 1,432 ABI records and 302 harmonized tariff records. Changes required by Presidential Proclamation 8840, To Modify Duty Free Treatment Under the Generalized System of Preferences, and for Other Purposes, effective July 1, are included as well. This proclamation is (here).

The International Trade Commission released a new web-based learning module to help users become familiar with and learn how to read the Harmonized Tariff Schedule, it said. The e-learning module, originally developed as an in-house training tool for new ITC staff, will guide users through web-based lessons to help them understand the HTS and how it is structured, it said. The module consists of four lessons, which provide information about: (1) the purpose of the HTS and its role in U.S. trade and product classification; (2) how to read the HTS; (3) how to determine duty rates and access the HTS Online Reference Tool; and (4) special HTS provisions, such as those resulting from trade agreements and other special programs. ITC’s learning module is available here.

The International Trade Commission issued Supplement 1 to the Harmonized Tariff Schedule which, among other things, (1) implements the President’s upcoming proclamation “To Modify Duty-Free Treatment Under the Generalized System of Preferences, and for Other Purposes”; and (2) makes changes approved by the Committee for Statistical Annotation of Tariff Schedules (formulated pursuant to section 484(f), Tariff Act of 1930, as amended). These changes are effective July 1. Details follow:

The International Trade Administration issued a Federal Register notice on its recently initiated antidumping investigations on xanthan gum from China and Austria (A-570-985 and A-433-811, respectively). The ITA will determine whether imports of imports of xanthan gum from China and Austria are being, or are likely to be, sold in the United States at less than fair value.

In a challenge of CBP’s customs classification of “gold leaf vials” with a gold plated cap imported from China, the Court of International Trade ruled in favor of plaintiff Salem Minerals Inc. CBP had originally classified plaintiff’s “small glass vial filled with clear liquid and a small quantity of gold leaf fragments, topped with a ‘theme’ cap featuring a small figurine, and affixed with a label” under Harmonized Tariff Schedule 2005 subheading 7114.90.00 (“Articles of goldsmiths’…wares...': Of other precious metal whether or not plated or clad with precious metal”), dutiable at 7.9%. CIT ruled that the product was instead properly classified under 7115.90.30 (“Other articles of precious metal…: Other…Other: Of gold, including metal clad with gold”), dutiable at 3.9%.

The National Marine Fisheries Service (NMFS) is seeking comments on a proposed rule to lift the trade restrictions on importing bigeye tuna from Bolivia and Georgia. The proposed rule would also make administrative changes to the section containing species-specific harmonized tariff codes in support of the International Trade Program. Comments are due July 25. In the rulemaking, NMFS would also consider administrative changes in support of the International Trade Permit (ITP) program to implement recent changes to the Harmonized Tariff Schedule.

In a case involving U.S. Customs and Border Protection’s tariff classification, and denial of eligibility for NAFTA duty-free entry, of plaintiff’s candied peanuts imported from Mexico in 2007, the Court of International Trade dismissed Rogelio Salazar Cavazos’ claims regarding CBP’s denial of his requested NAFTA importation duty refund claims. CIT said it had no jurisdiction over the matter because Salazar never filed a protest with CBP over its determination of the goods’ NAFTA eligibility. Salazar’s HTS classification protest did not likewise cover NAFTA eligibility, it said, and he was eligible to file a second protest, contrary to his arguments. However, Salazar’s claims challenging CBP’s tariff classification of the goods fall within its jurisdiction, CIT said, because he filed a valid protest that CBP denied, and so did not dismiss those claims.

The Agricultural Marketing Service issued a proposed rule that would amend the Cotton Board Rules and Regulations to increase the supplemental assessment rate and change the Harmonized Tariff Schedule statistical reporting numbers that were amended since the last assessment adjustment. AMS said the changes are necessary to ensure that assessments collected on imported raw cotton and the cotton content of imported products are the same as assessments collected on domestically produced cotton.

A $6.3 million settlement was reached Monday to resolve claims that companies misclassified auto parts manufactured in China and imported to the U.S. to evade $2.5 million in duties, said Immigrations and Customs Enforcement. Six companies from the U.S. and China, as well as two named individuals, allegedly violated the False Claims Act by knowingly misclassifying auto manifolds to obtain a duty rate of zero, ICE said, while charging its customers the correct duty of 2.5%, and retaining as "profit" the duty that should have been paid to U.S. Customs and Border Protection. Between June 2004 and June 2011, the U.S. alleged that the company evaded $2,549,000 worth of duties on 706 entries involving manifolds valued at $102 million.