Tariffs on Mexican imports would have a profound impact on the U.S. TV business if the Trump administration were to make good on its threat to impose 25 percent duties by Oct. 1 (see 1905310044), suggests our analysis of International Trade Commission import data. ITC statistics show the monetary fallout from 25 percent duties on finished TVs imported from Mexico could possibly exceed that of the threatened 25 percent Section 301 List 4 tariffs on TVs from China, even though China ships many more TVs to the U.S. than Mexico does.
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) 1910 on June 3, containing 1,379 Automated Broker Interface records and 283 Harmonized Tariff Schedule records, it said in a CSMS message. The update includes modifications related to USTR's extension of the Section 301 tariff increase from 10% to 25% to June 15 for ships that were already on the water as of May 10 (see 1905310070). It also includes changes related to the removal of India from eligibility for the Generalized System of Preferences program (see 1905310072). Modifications required by the verification of the 2019 HTS are included as well.
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 1905090067). This fifth list of exclusions includes one full tariff schedule subheading, as well as 88 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 9903.88.10 for the new set of exclusions.
The Commerce Department issued Federal Register notices on its recently initiated antidumping and countervailing duty investigations on quartz surface products from India (A-533-889/C-533-890), and Turkey (A-489-837/C-489-838).
Steel goods from Turkey that were given “privileged foreign status” for a foreign-trade zone while steel goods were subject to 50 percent Section 232 tariffs will only be subject to 25 percent tariffs when entered for consumption, CBP said in an update to its page on the Section 232 tariffs. Such goods that were admitted "prior to 12:01 a.m. eastern daylight time on May 21, 2019, shall be subject upon entry for consumption on or after such time and date to the additional 25 percent additional ad valorem rate of duty in heading 9903.80.01 in subchapter III of chapter 99 of the [Harmonized Tariff Schedule of the United States]," CBP said. The Section 232 tariffs on steel from Turkey were reduced to 25 percent on May 21 through a proclamation (see 1905170004) that included the language on FTZs.
CBP created Harmonized System Update (HSU) 1909 on May 22, containing 467 Automated Broker Interface records and 103 Harmonized Tariff Schedule records, it said in a CSMS message. The update includes adjustments related to the Section 201 safeguard tariffs on solar cells and residential washers that apply to Turkey now that it has been removed from the Generalized System of Preference benefits program (see 1905240049). Modifications required by the verification of the 2019 HTS are included as well.
Printed goods are classifiable in chapter 49 of the Harmonized Tariff Schedule of the United States if the printing has a communicative purpose, said the Court of International Trade in a decision issued May 14 and publicly released May 22. CIT found nine out of 10 models of silicone bands imported by Aero Rubber Company are classifiable as printed goods, but the court held the printing on one model is only decorative and classified it as plastic of chapter 39, CIT said.
The Commerce Department issued notices in the Federal Register on its recently initiated antidumping and countervailing duty investigations on vertical metal file cabinets from China (A-570-110/C-570-111). The CV duty investigation covers entries Jan. 1, 2018, through Dec. 31, 2018. The AD duty investigation covers entries Oct. 1, 2018, through March 31, 2019.
CBP created Harmonized System Update (HSU) 1908 on May 20, containing 212 Automated Broker Interface records and 43 Harmonized Tariff Schedule records, it said in a CSMS message. The update includes adjustments related to the reduction of Section 232 tariffs on steel from Turkey (see 1905170004). Modifications required by the verification of the 2019 HTS are included as well.
The International Trade Commission recently issued two updates to the Harmonized Tariff Schedule to reflect changes for Section 301 tariffs on products from China. In Revision 4, the ITC implemented the increase in duties on tranche three of goods subject to the tariffs from 10 to 25 percent, as announced in early May (see 1905060040). The increase in duty rates for subheadings 9903.88.03 and 9903.88.04, as well as U.S. Notes 20(e) and 20(g) to subchapter III of chapter 99, took effect May 10. The subsequently issued Revision 5 implemented a new batch of exclusions from tranche one of the tariffs under new subheading 9903.88.08 and U.S. Note 20(k) to subchapter III, and made conforming changes to U.S. Note 20(a) and U.S. Note 20(b). It also implemented new subheading 9903.88.09 for goods subject to tranche three of duties that are still subject to a 10 percent duty because they were exported from China before May 10 and entered before June 1. U.S. Note 20(l) explains the new provision. Also in Revision 5 but unrelated to Section 301 tariffs, the ITC updated Statistical Annexes A and B of the HTS to reflect the new name of North Macedonia.