Presidential Proclamation 8742, published on November 3, 2011, modifies the conditions under which a special import quota for upland cotton takes effect under U.S. note 6 to subchapter III of chapter 99 of the Harmonized Tariff Schedule. This modification is made to reflect changes made by the Food Conservation and Energy Act of 2008 (2008 Farm Bill) and is effective with respect to goods entered or withdrawn from warehouse for consumption on or after June 18, 2008.
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 following is an overview of U.S. Customs and Border Protection’s recent interim final rule, effective November 3, 2011, that amended its regulations for the preferential tariff treatment and other customs-related provisions of the U.S.-Peru Trade Promotion Agreement (PTPA or Peru FTA) by adding a new subpart Q to 19 CFR Part 10, etc.
Presidential Proclamation 8742, published on November 3, 2011, will modify and add certain origin and tariff classification rules in Harmonized Tariff Schedule General Note 26 on the U.S.-Chile Free Trade Agreement (FTA). These changes affect products in HTS chapters 28 through 38, as well as spices, coffee, machinery and equipment, and lamps. All changes are effective for goods that are entered or withdrawn from warehouse for consumption on or after November 1, 2011.
U.S. Customs and Border Protection is issuing an interim final rule, effective November 3, 2011 to amend its regulations for the preferential tariff treatment and other customs-related provisions of the U.S.-Peru Trade Promotion Agreement (PTPA or Peru FTA).
U.S. Customs and Border Protection has posted two memoranda dated January 11, 2011 announcing the results of the tariff-rate quotas (TRQs) for milk and cream, condensed or evaporated, and for dairy products, which opened on January 3, 2011. CBP sources state that these memoranda went out to the field and trade in January 2011 but were never posted online.
The International Trade Administration is seeking comment on any subsidies, including stumpage subsidies, provided by certain countries exporting softwood lumber or softwood lumber products to the U.S. during the period January 1 through June 30, 2011.
The Court of International Trade has ruled in a test case, Firstrax, Div. of United Pet Group, Inc., v. U.S., that certain soft crates for pets are classifiable as made up (textile) articles in heading 6307 and not as cases in heading 4202 as classified by Customs. The CIT explained that the soft crates did not meet the four essential characteristics of the goods listed in heading 4202; they did not (1) organize, (2) store, (3) protect, and (4) carry various items.
U.S. Customs and Border Protection has issued a proposed rule to increase the informal entry limit from $2,000 to its maximum statutory limit of $2,500 due to inflation. CBP also proposes to eliminate the formal entry requirement for certain textile and other articles valued over $250, as there are no longer absolute quotas and/or visa requirements for such goods. As a result, these textiles and other articles would also have a informal entry limit of $2500. Comments are due by December 27, 2011.
U.S. Customs and Border Protection has issued a proposed rule to increase the informal entry limit from $2,000 to $2,500. CBP also proposes to remove the language requiring formal entry for certain articles, because with the elimination of absolute quotas under the Agreement on Textiles and Clothing, CBP no longer needs to require formal entries for these articles. The proposed rule would also make what CBP describes as nonsubstantive, editorial and nomenclature changes.
On October 25, 2011, the President issued Proclamation 8741 restoring trade preferences and other benefits to Côte d'Ivoire, Guinea, and Niger as beneficiary African Growth and Opportunity Act (AGOA) countries and as lesser developed AGOA beneficiary countries.1