Changes to the U.S. tariff schedule that implement an update to the World Customs Organization's Harmonized System tariff nomenclature are set to take effect Jan. 27, according to the presidential proclamation scheduled for publication in the Federal Register Dec. 28. The full list of coming changes are described in a newly released report from the International Trade Commission.
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 White House released its much anticipated proclamation amending the tariff schedule to implement the five-year update to the World Customs Organization’s Harmonized System tariff nomenclature. The widespread changes to the U.S. Harmonized Tariff Schedule will take effect 30 days after the proclamation is published in the Federal Register.
The presidential proclamation amending the Harmonized Tariff Schedule to implement a hefty five-year update will likely be published in the coming days, which would set an effective date in late January for the lengthy list of changes. The White House released the proclamation Dec. 23 (see 2112230012), though a publication date in the Federal Register had not yet been scheduled as of press time. The date of publication triggers a 30-day countdown before the changes take effect.
The following lawsuits were filed at the Court of International Trade during the week of Dec. 13-19:
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The White House is reviewing a draft proclamation about the five-year Harmonized Tariff Schedule update to implement changes to the World Customs Organization’s Harmonized System, the National Customs Brokers & Forwarders Association of America said in a Dec. 20 email to members. "For the WCO HS2022 to be effective, a proclamation from the White House must be published in the Federal Register," the trade group said. "These new tariff changes will then go into effect 30 days following publication. We have learned that a draft proclamation has been provided to the White House for review." CBP recently said the changes wouldn't take effect Jan. 1 and that it planned to continue to use the current HTS until more guidance is given (see 2112170068).
CBP “understands” that the five-year Harmonized Tariff Schedule update to implement changes to the World Customs Organization’s harmonized system will not take effect Jan. 1, 2022, it said in an emailed CSMS message. “CBP is awaiting formal direction for this update, which will be implemented by Presidential Proclamation and published in the Federal Register. In the interim, CBP will continue to use the current harmonized tariff schedule and encourages the trade community to do the same until further guidance is provided.”
CBP “understands” that the five-year Harmonized Tariff Schedule update to implement changes to the World Customs Organization’s Harmonized System will not take effect Jan. 1, 2022, it said in a CSMS message. “CBP is awaiting formal direction for this update, which will be implemented by Presidential Proclamation and published in the Federal Register. In the interim, CBP will continue to use the current harmonized tariff schedule and encourages the trade community to do the same until further guidance is provided.”
CBP authorized the release of most types of merchandise on or after Dec. 16 through Dec. 31 under Immediate Delivery (ID) procedures, it said in a CSMS message. Many entry filers make regular use of ID procedures for fresh fruits and vegetables and other merchandise from Mexico and Canada, etc.
CBP created Harmonized System Update (HSU) 2115 Dec. 15, containing 8,848 Automated Broker Interface records and 1,397 Harmonized Tariff Schedule records, it said in a CSMS message. CBP said it also created HSU 2114 on Dec. 10. with 8,457 ABI records and 1,351 HTS records.