The Commerce Department issued a notice in the July 23 Federal Register on its recently initiated countervailing duty investigations on phosphate fertilizers from Morocco (C-714-001) and Russia (C-821-825).
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.
CBP created Harmonized System Update (HSU) 2006 on July 15, containing 544 Automated Broker Interface records and 114 Harmonized Tariff Schedule records, it said in a CSMS message. The update covers recent Section 301 tariff exclusions. Further information: Jennifer Keeling, Jennifer.L.Keeling@cbp.dhs.gov.
The International Trade Commission is asking for an additional $2.75 million over its current funding level of $99.4 million because of the demands of high levels of antidumping and Section 337 investigations, and the requirement to do an investigation on “whether the U.S. long-haul trucking industry is materially harmed by an increase in cross-border trucking services provided by Mexican suppliers.” That investigation is part of USMCA implementation.
Some new provisions within the USMCA seem to make claims of U.S. goods returned under Harmonized Tariff Schedule heading 9801 for U.S. origin goods much less important than was the case under NAFTA. Kevin Riddell, director-trade and regulatory compliance at Tremco Group in Canada, highlighted the changes, which allow for USMCA claims on U.S. origin goods, in a recent LinkedIn post. While Riddell said he hadn't tried to enter U.S. goods under the new USMCA provisions, a CBP spokesperson confirmed that “a USMCA claim may be made on goods of U.S. origin, provided it satisfies its applicable rule of origin and all other requirements of the Agreement have been met.”
Four U.S. manufacturers seek the imposition of new antidumping and countervailing duties on metal lockers from China, they said in a petition filed with the Commerce Department and the International Trade Commission July 8. Commerce will now decide whether to begin AD/CVD investigations, which could result in the imposition of permanent AD/CV duty orders and the assessment of AD and CV duties on importers.
The Office of the U.S. Trade Representative announced a new round of product exclusions for products on the fourth list of Section 301 tariffs on products from China, as well as a series of modifications to current exclusions, including several for face masks, to reflect recent changes to the tariff schedule that took effect July 1.
A domestic manufacturer filed a petition July 7 with the Commerce Department and the International Trade Commission requesting new antidumping duties on seamless carbon and alloy steel standard, line and pressure pipe from the Czech Republic, South Korea, Russia and Ukraine, and new countervailing duties on the same products from South Korea and Russia. Commerce will now decide whether to begin AD/CVD investigations on seamless carbon and alloy steel standard, line and pressure pipe that could eventually result in the assessment of AD/CV duties.
The administration thought that allowing traders to certify that goods qualify for USMCA without having to use a specific form would be liberating, but traders continue to be confused about what to write, and wish there were a template to follow. There will be a template posted on the CBP website eventually, but it has not been done yet, a week after the USMCA replaced NAFTA.
Because the Office of the U.S. Trade Representative was in such a hurry on implementation, some USMCA details needed by traders are either wrong or missing. For instance, there are tariff numbers that are invalid, because negotiators used the 2012 Harmonized Tariff Schedule numbers. On a call with trade professionals July 6, CBP staffers said importers or exporters can email CBP with a tariff number in question, and the agency can provide guidance on how to claim USMCA treatment for those goods.
2020 outpaced even the active 2019 in terms of the frequency of Harmonized Tariff Schedule updates. Most of the updates implemented new Section 301 exclusions and changes and extensions for existing ones. Other major changes included new Section 232 tariffs on steel and aluminum "derivatives" and the withdrawal of Generalized System of Preferences benefits for many goods from Thailand In all, 13 revisions were issued prior to the mid-year Revision 14, as follows: