ITC Issues Semiannual Revision to 2019 HTS; Changes Take Effect July 1
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.
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International Trade Today is providing a summary of all changes in Revision 8 to the 2019 HTS, as listed in the ITC’s change record. All changes take effect July 1, 2019. Included in this guide is International Trade Today’s table of tariff reductions under the Information Technology Agreement, detailing the final round of staged reductions that take effect July 1, 2019. Also included is an outline of the several changes to the tariff schedule that have occurred since the beginning of the year, mostly to implement changes and exemptions to Section 301 and Section 232 tariffs, as well as the removal of Turkey and India from the Generalized System of Preferences program.
Aluminum Provisions in Chapter 76 Reorganized
The July 1 HTS includes a reorganization of several portions of Chapter 76 on aluminum products. Some of the changes simplify the relevant subheadings by removing statistical breakouts, while others add more detail, including by specifying the type of alloy by way of a set of new chapter notes.
Unwrought aluminum. Subheading 7601.10.60 for “other” unalloyed, unwrought aluminum is subdivided into new statistical suffixes 7601.10.6030 for “other” unalloyed, unwrought aluminum of a purity of greater than 99.8% aluminum, and 7601.10.6060 for “other” unalloyed, unwrought aluminum with a lower proportion of aluminum.
Aluminum alloys. New statistical suffixes are added to tariff provisions for “other” aluminum alloys (i.e., not of uniform cross-section, of aluminum vanadium master alloy or of secondary aluminum) for sheet ingot (slab) under 7601.20.9080 and foundry ingot under 7601.20.9085. These terms are described in new statistical notes 3 and 4 to Chapter 76. Statistical Note 3 says that, “for the purposes of statistical reporting number 7601.20.9080, sheet ingot (slabs) refers to aluminum alloys with a rectangular cross-section suitable to be manufactured into other products.” Statistical Note 4 says that, “for the purposes of statistical reporting number 7601.20.9085, foundry ingot refers to large castings of aluminum alloys of various shapes other than sheets or slabs to be melted for further processing.” Subheading 7601.20.9090 is renumbered 7601.90.9095.
Non-alloy aluminum bars and rods. Provisions for non-alloy aluminum bars and rods are simplified so they now fall under a single subheading 7604.10.3000 for bars and rods with a round cross-section, and statistical suffix, and a single subheading 7604.10.5000 for other bars and rods. Previously these subheadings were subdivided based on diameter.
Aluminum alloy bars and rods. Tariff provisions for bars and rods of aluminum alloys are reorganized. Previously, subheadings 7604.29.30 and 7604.29.50 for round and “other” aluminum alloy bars and rods, respectively, were subdivided into statistical suffixes based on diameter. The old statistical suffixes are now removed, and are replaced with new statistical suffixes based on the type of alloy.
New statistical suffixes 7604.29.3030 and 7604.29.5020 are for bars and rods of “high-strength heat-treatable alloys,” which “refers to aluminum containing by weight 7.0 percent or less of copper or 10.0 percent or less of zinc, and/or designated as series 2xxx and 7xxx (except 7072) in the Aluminum Association’s specifications of registered alloys,” according to new Statistical Note 5 to Chapter 76.
New statistical suffixes 7604.29.3060 and 7604.29.5050 cover “heat-treatable industrial alloys,” which “refers to aluminum containing by weight 3.0 percent or less of magnesium and 3.0 or less of silicon, and/or are designated as series 6xxx in the Aluminum Association’s specifications of registered alloys,” new Statistical Note 6 to Chapter 76 says.
Aluminum wire. Tariff provisions for aluminum wire are simplified. Statistical breakouts for alloy and non-alloy aluminum wire with a cross section over 9.5 mm and less than 9.5 mm are eliminated. Now, non-alloy aluminum wire with a cross-section over 7 mm is classifiable in previously existing subheading 7605.11.0000, and aluminum alloy wire with a cross section over 7 mm is classifiable under previously existing subheading 7605.21.0000.
Aluminum plate, sheet and strip. Subheading 7606.12.3030 for unclad, rectangular aluminum alloy plates, sheet and strip, with a thickness of over 6.3 mm, is subdivided by type of alloy. The new statistical breakouts refer to the aforementioned Statistical Notes 5 and 6 to Chapter 76, with 7606.12.3015 covering “high-strength heat-treatable alloys” described by note 5, and 7606.12.3025 covering “high-strength heat treatable alloys” described by note 6. New statistical suffix 7606.12.3035 covers “other” rectangular aluminum alloy plates sheet and strip, with a thickness of over 6.3 mm.
Non-rectangular aluminum plate, sheet and strip. Tariff provisions for non-rectangular aluminum plate, sheet and strip under subheadings 7606.91 and 7606.92 are simplified so they are no longer subdivided based on shape. Statistical suffixes for “circles and discs” and “other” shapes are removed. The subheadings remain subdivided based on whether the sheets have a thickness of more than 6.3 mm, or 6.3 mm or less.
These changes result in new statistical suffixes 7606.91.3055 for unclad, non-alloy, non-rectangular aluminum plate, sheet and strip with a thickness of over 6.3 mm, and 7607.91.3095 for 6.3 mm or less; and 7606.91.6055 for clad, non-alloy, non-rectangular aluminum plate, sheet and strip with a thickness of over 6.3 mm, and 7606.91.6095 for 6.3 mm or less. New statistical suffix 7606.92.3025 covers unclad, non-rectangular aluminum alloy plate, sheet and strip with a thickness of over 6.3 mm, and 7607.92.3035 is for 6.3 mm or less; and new 7606.92.6055 covers clad, non-rectangular aluminum alloy plate, sheet and strip with a thickness of over 6.3 mm, with 7607.92.6095 for 6.3 mm or less.
Aerial Work Platform Trucks Broken Out in Chapter 84
Statistical breakouts for “aerial work platforms” are added to tariff provisions in heading 8427 for forklifts and other work trucks meant for lifting or handling equipment. The term is defined by new Statistical Note 1 to Chapter 84, as follows: “the term 'aerial work platforms' means work trucks that incorporate a platform, attached to a lift mechanism mounted on a mobile base, for lifting personnel, tools and materials.”
Within subheading 8427.10, which covers self-propelled trucks powered by an electric motor, former subheading 8427.10.8010 for operator riding trucks is divided into new breakouts 8427.10.8020 and 8427.10.8030 for aerial work platforms and “other” trucks, respectively. Former subheading 8427.10.8060 for automated guided vehicles is divided into 8427.10.8040 for aerial work platforms and 8427.10.8050 for “other” trucks. Former subheading 8427.10.8090 for “other” self-propelled electric trucks is replaced by 8427.10.8070 for aerial work platforms and 8427.10.8095 for “other” trucks.
Subheading 8427.20.80 for other self-propelled trucks besides forklifts is subdivided into new statistical suffix 8427.20.8020 for aerial work platforms and 8427.20.8090 for other trucks. Subheading 8427.90.00 for other trucks (i.e., not self-propelled) of heading 8427 is subdivided into 8427.90.0020 for aerial work platforms, and 8427.90.0090 for other trucks.
Other Statistical Changes at 10-Digit Level
Other changes being implemented by the ITC in its mid-year update include changes to statistical reporting of diamond grinding wheels, stainless steel butt-weld fittings and electric motorcycles, as follows:
Frozen berry mixes. New subheading 0811.90.8085 is added for “frozen mixes only of combinations of strawberries, blueberries, red raspberries or blackberries.” Former subheading 0811.90.8080 for “other” fruits and nuts not elsewhere described in heading 0811 is renumbered 0811.90.0095.
Diamond wheels. Subheading 6804.21.00 for “other millstones, grindstones, grinding wheels and the like” of “agglomerated synthetic or natural diamond” is further subdivided to create new statistical suffixes 6804.21.0020 for “articles consisting of a continuous rim segment of diamond agglomerated with metal, attached to circular plates of steel (whether or not attached to non-steel plates),” and 6804.21.0030 for “articles consisting of multiple segments of diamond agglomerated with metal, attached to circular plates of steel, without cutting parts (whether or not attached to non-steel plates).” Former statistical suffix 6804.21.0080 for “other” diamond millstones, grindstones, grinding wheels and sawblades is renumbered 6804.21.0085.
Stainless steel butt-weld fittings. The ITC is subdividing subheading 7307.23.00 for stainless steel butt-weld fittings into new statistical suffixes 7307.23.0030 for fittings “not machined, not tooled and not otherwise processed after forming,” and 7307.23.0090 for “other” stainless steel butt-weld fittings.
Electric motorcycles. Subheading 8711.60.00 for motorcycles with an electric motor for propulsion is subdivided into statistical suffixes 8711.60.0050 for motorcycles with electric motors of an output not exceeding 250 W, and 8711.60.0090 for other electric motorcycles.
Storage lockers. New statistical breakout 9403.20.0078 for “storage lockers, other than exchange lockers,” is added to tariff provisions for non-household metal counters, lockers, racks, display cases, shelves, partitions and similar fixtures under subheading 9403.20, alongside an existing breakout for boltless steel shelving. Metal exchange lockers are defined in new Statistical Note 3 to Chapter 94 as “lockers with individual locking doors mounted on one master locking door to access multiple units used by commercial businesses, hospitals, police departments, condominiums, apartments, hotels, automobile dealerships, etc.” Subheading 9403.20.0080 for “other” non-household metal counters, lockers, racks, display cases, shelves, partitions and similar fixtures is renumbered 9403.20.0081.
Corrections
Plotters. The unit of measure for subheading 9017.90.0105, which covers parts and accessories of “plotters” of subheading 9017.10.40, is corrected so it is now “X” instead of “kg.”