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:
Latest Harmonized System updates
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.
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.
CBP created Harmonized System Update (HSU) 1911 on June 11, containing 4 Automated Broker Interface records and 1 Harmonized Tariff Schedule record, it said in a CSMS message. The update includes adjustments required by the Office of the U.S. Trade Representative's announcement of new exemptions from Section 301 tariffs on China (see 1906030038). Modifications required by the verification of the 2019 HTS are included as well.
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.
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.
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.
CBP created Harmonized System Update (HSU) 1907 on May 10, containing 43 Automated Broker Interface records and 10 Harmonized Tariff Schedule records, it said in a CSMS message. The update includes adjustments required by the Office of the U.S. Trade Representative's announcement of increased tariffs on goods from China (see 1905100015). The update also includes the new exemptions from Section 301 tariffs on China (see 1905100034). Modifications required by the verification of the 2019 HTS are included as well.
CBP provided some details in a May 9 CSMS message on how importers should file entries that will be subject to the increased Section 301 duties on goods from China. The CSMS message confirms that the increased duties will only apply to goods exported and entered after May 10 (see 1905080035). During a call with software developers the same day, CBP officials explained that several pieces are still being worked out, including the addition of a tariff subheading for goods exported before May 10 and entered after the tariffs take effect.
CBP's proposed ruling revocation on garments with 50/50 blends of fiber (see 1904050037) seems to indicate a big shift in the way the agency classifies garments and other finished textile goods, according to industry experts. The proposal is a "significant change in policy," Sandler Travis lawyer Elise Shibles said in a May 2 email. The proposal "could significantly impact a wide range of imported goods, including their duty rates, qualification for free trade agreements, and sourcing supply chains," she and trade consultant Tom Gould said in a post on the firm's website.