The Office of the U.S. Trade Representative is publishing its latest list of product exclusions from the first tranche of $34 billion in Section 301 tariffs on China (see 1907080008). This sixth list of exclusions includes 110 subsets of tariff numbers in chapters 84, 85 and 90. The new exclusions take effect retroactively from July 6, 2018, when the $34 billion in tariffs originally entered into force, and will remain for one year following publication of USTR’s notice. USTR is creating Harmonized Tariff Schedule subheading 9903.88.11 for the new set of exclusions.
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 International Trade Commission on July 1 posted Revision 8 to the 2019 Harmonized Tariff Schedule. The semiannual update to the HTS implements the fourth and final round of tariff cuts under the expanded World Trade Organization Information Technology Agreement. It also extensively reorganizes 10-digit tariff subheadings covering aluminum products, and adds tariff provisions for aerial work platform trucks, frozen berry mixes, diamond grinding wheels, storage lockers and certain electric motorcycles.
The final set of tariff reductions under the Expanded World Trade Organization Information Technology Agreement will take effect July 1. International Trade Today is again providing a table of changes to tariffs in the Harmonized Tariff Schedule for certain products as a result of this last round of implementation. While tariffs on many products were eliminated completely when the agreement took effect in July 2016, other products subject to the expanded ITA have seen tariffs phased out over a three-year period, with tariffs for all remaining products covered by the agreement now reduced to zero in 2019.
2019 is shaping up to be another active year in terms of changes to the Harmonized Tariff Schedule. Like last year, a series of revisions were necessary in the first half of the year to implement Section 301 exemptions and an increase for $200 billion worth of the China tariffs from 10 percent to 25 percent. Other major changes are related to the Generalized System of Preferences, and in particular the removal of India and Turkey from the program. In all, seven revisions were issued prior to the mid-year Revision 8, as follows:
CBP will require ACE for reporting all in-bond exports, arrivals and diversions starting July 29, the agency said in a CSMS message. "CBP will no longer accept paper copies of the CBPF 7512 to perform arrival and export functionality," though air shipments will still be exempt from the requirements, it said. "An ACE edit will issue a rejection if these actions are not performed," CBP said. "At this time, no date is set for implementation of the provision requiring the 6-digit Harmonized Tariff Schedule number requirement for Immediate Transportation movements." The Automated In-Bond Processing Business Process document is the "official publication which provides both CBP and the trade community with guidance, requirements and responsibilities when processing in-bond cargo," the agency said.
The Commerce Department issued notices in the Federal Register on its recently initiated antidumping duty investigations on collated steel staples from China, South Korea and Taiwan (A-570-112, A-580-901, A-583-866), and countervailing duty investigation on collated steel staples from China (C-570-113). The CV duty investigation covers entries Jan. 1, 2018, through Dec. 31, 2018. The AD duty investigations on South Korea and Taiwan cover entries April 1, 2018, through March 31, 2019, and the AD duty investigation on China covers entries Oct. 1, 2018, through March 31, 2019.
The International Trade Commission posted Revision 8 to the 2019 Harmonized Tariff Schedule. The semiannual update to the HTS implements the fourth and final round of tariff cuts under the expanded World Trade Organization Information Technology Agreement. It also extensively reorganizes 10-digit tariff subheadings covering aluminum products, and adds tariff provisions for aerial work platform trucks, frozen berry mixes, diamond grinding wheels, storage lockers and certain electric motorcycles.
While the reasons that Section 301 tariff exclusions were granted are murky to trade lawyers, in general, more information is better when submitting requests, trade lawyers said during a panel at the American Association of Exporters and Importers Annual Conference June 28. Pictures of your product, emails from domestic companies saying they can't provide the quantity you're looking for, and the number of U.S. jobs that are imperiled if you have to pay 25 percent more for this product are all good pieces of information to provide, they said.
The final set of tariff reductions under the Expanded World Trade Organization Information Technology Agreement will take effect July 1. International Trade Today is again providing a table of changes to tariffs in the Harmonized Tariff Schedule for certain products as a result of this last round of implementation. While tariffs on many products were eliminated completely when the agreement took effect in July 2016, other products subject to expanded ITA have seen tariffs phased out over a three-year period, with tariffs for all remaining products covered by the agreement now reduced to zero in 2019.
CBP created Harmonized System Update (HSU) 1912 on June 26, containing 994 Automated Broker Interface records and 239 Harmonized Tariff Schedule record, it said in a CSMS message. The update includes adjustments related to the expanded World Trade Organization Information Technology Agreement (see 1607010056 and 1607050003). Modifications required by the verification of the 2019 HTS are included as well.